Collective Agreement Between

Collective Agreement Between The International Association of Machinists and Aerospace Workers Local 235 And Hobart Food Equipment Group Canada A Division of ITW Canada (Richmond Hill Warehouse) October 1, 2005 June 28, 2008

INDEX ARTICLE 1 - PURPOSE...3 ARTICLE 2 - RECOGNITION...3 ARTICLE 3 - MANAGEMENT RIGHTS...3 ARTICLE 4 - CHECK OFF...5 ARTICLE 5 - NO STRIKES OR LOCK-OUTS...5 ARTICLE 6 - NO DISCRIMINATION...5 ARTICLE 7 - UNION REPRESENTATION...5 ARTICLE 8 - COMPLAINT AND GRIEVANCE PROCEDURE...6 ARTICLE 9 - ARBITRATION...9 ARTICLE 10 - SENIORITY...10 ARTICLE 11 - LEAVE OF ABSENCE...13 ARTICLE 12 - POSTING NOTICES...13 ARTICLE 13 - SAFETY AND HEALTH...13 ARTICLE 14 - HOURS OF WORK...15 ARTICLE 15 - OVERTIME...15 ARTICLE 16 - REPORTING PAY...16 ARTICLE 17 - SPECIAL ALLOWANCES...16 ARTICLE 18 - BEREAVEMENT...16 ARTICLE 19 - JURY DUTY...17 ARTICLE 20 - PAY ON DAY OF INJURY...17 ARTICLE 21 - PLANT HOLIDAYS...17 ARTICLE 22 - ANNUAL VACATIONS WITH PAY...18 ARTICLE 23 - WAGE RATES AND JOB CLASSIFICATIONS...20 ARTICLE 24 - WELFARE...21 ARTICLE 25 - TERMINATION...23 SCHEDULE A WAGE RATES AND CLASSIFICATIONS...24 SCHEDULE B GROUP INSURANCE PLAN (Including LTD)...25 Letter of Understanding Re: Warehouse and Service Coordination...26 2

COLLECTIVE AGREEMENT Between HOBART FOOD EQUIPMENT GROUP CANADA 25 KINNEAR COURT, RICHMOND HILL, ONTARIO (hereinafter called "the Company") and THE INTERNATIONAL ASSOCIATION OF MACHINISTS AND AEROSPACE WORKERS THROUGH ITS LOCAL LODGE (hereinafter called "the Union") ARTICLE 1 - PURPOSE 1.01 The purpose of this agreement is to define the relations between the Company and the Union, the wages and working conditions of employees of the Company represented by the Union, and the means by which complaints, grievances and disputes shall be disposed of promptly and equitably. ARTICLE 2 - RECOGNITION 2.01 The Company recognizes and accepts the Union as the sole collective bargaining agency for all its employees at 25 Kinnear Court, Richmond Hill, Ontario, save and except foreman, those above the rank of foreman, office and sales staff and service trainees. ARTICLE 3 - MANAGEMENT RIGHTS 3.01 The Union acknowledges that it is the exclusive function of the Company to hire, promote and demote 3

and transfer employees, and also the right of the Company to discipline or discharge any employee for cause, provided that a claim by an employee that he has been discharged or disciplined without reasonable cause may be the subject of a grievance and dealt with as hereinafter provided. 3.02 The Union further recognizes the right of the Company to operate and manage its commitments and responsibilities. The location of the plants, the products to be manufactured, the schedules of production, the methods, processes and means of manufacturing are solely and exclusively the responsibility of the Company. The Company also has the right to make and alter from time to time rules and regulations to be observed by the employees provided that they are not inconsistent with the provisions of this agreement. 3.03 PRODUCTION STANDARDS It is recognized for the Company to be competitive and to establish accurate costs, overall production requirements must be established. It is the Company's responsibility to establish the methods and generally accepted production standards by using good industrial engineering techniques. The employees will be required to follow the prescribed method and to meet the generally accepted production standard. The production standards will be changed whenever there is a significant change in method, procedure, speeds, feeds, tooling, material or quality level. Production standards will be established on the principle of a fair day's work of an average, normal, trained operator. If an employee feels a production standard is incorrect and after giving it a fair trial, he may request a review through the grievance procedure. In order for the Company and the Union to have a better understanding of the production standards program, the Company will familiarize at its expense the shop committee and the stewards. During the introduction of the production standards program, there will be periodic meetings between the Company and the Shop Committee to review the progress. 4

ARTICLE 4 - CHECK OFF 4.01 The Company will deduct the amount of regular monthly union dues from the pay of each employee in the bargaining unit. The sums deducted will be remitted by the Company each month to the Financial Secretary of the District Lodge together with the names of the parties in respect of whom such deductions have been made. The Company agrees to show on the Income Tax T-4 slip the amount of union dues deducted during the previous calendar year. ARTICLE 5 - NO STRIKES OR LOCK-OUTS 5.01 The Company agrees that there shall be no lock-out of its employees, and the Union agrees that there shall be no strikes or other interruption or interference with the Company's operations. ARTICLE 6 - NO DISCRIMINATION 6.01 The Union shall not use coercion or intimidation or discriminatory action in soliciting union membership. 6.02 The Company will not discriminate against any employee because of membership or non-membership in any union. ARTICLE 7 - UNION REPRESENTATION 7.01 The Union shall name a shop committee of two (2) who will be employees of the Company covered by this agreement. During negotiations, the shop committee will act as a negotiating committee. It is agreed that only one (1) steward will attend grievance/arbitration proceedings and matters of general discipline. 7.02 Matters pertaining to the interpretation or application of this agreement and disputes over such matters may be discussed and adjusted by the Company and the shop committee who will meet as required. 5

7.03 The Union may designate, and the Company will recognize, shop stewards for such work areas as may be agreed by the parties to be reasonable and proper. 7.04 The shop committee chairman, or his designate, will after receiving the permission of his foreman, be allowed a reasonable time away from his regular duties to investigate any complaint or grievance that may arise. If he wishes access to another department he will first obtain the permission of the foreman of that department. He shall report back to his own foreman immediately prior to resuming his regular duties. 7.05 Shop committeemen and shop stewards will exercise the privileges herein provided in such a manner as to promote good order and shop discipline and with the least possible interference with the regular duties of their employment. 7.06 An employee required to report to the company for the purpose of being formally disciplined shall be acquainted with the reason thereof and he shall be accompanied by the shop steward or alternate unless the employee desires otherwise. The union steward and the employee shall receive a copy of any record of discipline which is to be put into an employee's file. 7.07 The company and the union shall meet monthly to discuss issues, problems, opportunities and other matters of mutual concern. ARTICLE 8 - COMPLAINT AND GRIEVANCE PROCEDURE 8.01 Should any dispute arise between the Employer and an Employee or between the Employer and the Union as to the interpretation, application, administration or alleged violation of any of the provisions of this Agreement, an earnest effort will be made to settle such differences without undue delay in the following manner: STEP 1 The Employee involved shall, within five (5) working days of the date of the incident giving rise to the 6

STEP 2 STEP 3 Complaint, or, of the date of the incident giving rise to the Complaint should reasonably have been known to the Employee, discuss the Complaint with his Supervisor. The Shop Steward shall be present during the discussion. The Supervisor shall give his answer within three (3) working days following the date of the meeting. The Shop Steward shall be present when the Supervisor gives his answer. If the Employee is not satisfied with the Supervisor's answer to the complaint, a Grievance may be filed within five (5) working days of the date the Supervisor gives his answer to the Complaint. The Employee may have the assistance of the Shop Steward in filling out the Grievance Form. All Grievances shall be in writing and shall be signed by the Employee and the Shop Steward. All Grievances shall contain the Article of the Collective Agreement alleged to be violated, the nature of the grievance and the adjustment requested. The Grievance Form shall be presented to the Regional Service Manager or his designate and discussed with the Employee and the Shop Steward at that time. The Employer shall have five (5) working days to answer the grievance in writing and present it to the Employee and the Shop Steward. If the Employee is not satisfied with the Employer's written answer given at STEP 2, and the Union does not withdraw the grievance in writing within five (5) working days following the date of the meeting at which the Employer gave its written answer to the grievance, the grievance shall proceed to a STEP 3 meeting. This meeting shall be arranged in a timely manner by the Human Resources Director or designate and a Business Representative of the International Association of Machinists and Aerospace Workers, District Lodge No. 235. The Employer shall have five (5) working days to answer the grievance in writing and present it to the Employee and Shop Steward. A copy shall also be sent to the Business Representative. If the grievance is not settled at STEP 3, and the Union does not withdraw the grievance in writing within ten (10) working days following the first 7

Wednesday of any month after the date of the meeting at which the Employer gave its written answer to the grievance, at STEP 3, the grievance shall proceed to arbitration under Article 9 of this Collective Agreement. The Employer and the Union shall notify each other, in writing, whom to contact to select the arbitrator. 8.02 Where a difference arises between the Union and the Employer relating to the interpretation, application, administration or alleged violation of this Collective Agreement, the Union may, within ten (10) working days of the date the incident becomes known to the Union, file a policy or group grievance. Article 8.01, STEP 3, shall then apply as though the Union's policy or group grievance was a grievance of an employee. 8.03 The Employer may file a grievance against the Union. The Employer may file a grievance within ten (10) working days of the date an incident becomes known to the Employer. Article 8.01, STEP 3, shall then apply. 8.04 DISCHARGE AND DISCIPLINE A claim by an employee that he has been discharged or disciplined without just cause will be treated as a grievance if a written statement of the grievance is lodged with the Regional Service Manager, or his designate in charge of operations, within three (3) working days after the discharge or imposition of discipline. Such a grievance will start at Step. No. 2. 8.04 WRITTEN WARNING Where an employee is given written warning, it will be issued in triplicate, one (1) copy to be given to the Employee concerned; one (1) copy to be retained by the Employer; and one (1) copy to be given to the union. No such warning will remain on the employee's record for more than twelve (12) months from the date of issue unless within the said twelve (12) months, the employee has received further written warning or other discipline. 8

ARTICLE 9 - ARBITRATION 9.01 A request for arbitration will be made in writing addressed to the other party, and the grieving party will at the same time nominate its arbitrator. 9.02 Within five (5) days of receipt of the written notice the other party will nominate an arbitrator. The two arbitrators so nominated will meet immediately, and if within two (2) working days they fail to settle the grievance they will attempt to select by agreement a chairman of an arbitration board. If they are unable to agree upon a chairman within a further period of twenty-four (24) hours, appointment of a chairman will be made by the Minister of Labour on the application of either party. 9.03 No person may be appointed as an arbitrator who has been involved in an attempt to negotiate or settle the grievance. 9.04 Each party will bear one-half of the expenses of the chairman of the arbitration board. 9.05 No matter may be submitted to arbitration which has not been properly carried through all previous steps of the grievance procedure. 9.06 The arbitration board shall not be authorized to make any decision inconsistent with the provisions of this agreement, nor to alter, modify or amend any part of this agreement. 9.07 The decision of the majority of the board of arbitration shall be the decision of the board, but if no majority decision is possible then the decision of the chairman shall be the decision of the board. In any event the decision of the board shall be final and binding upon the parties hereto. 9.08 A board of arbitration established to deal with a discharge or discipline grievance may dispose of such grievance by: (a) confirming the Company's action (b) reinstating the employee with full or partial seniority and/or full or partial compensation for all time lost; or 9

(c) making such other disposition as may seem to the board to be just and equitable. ARTICLE 10 - SENIORITY 10.01 An employee will be considered on probation and will not be placed on a seniority list until he has worked for a total period of sixty (60) working days for the Company. After he has so attained seniority it will be computed from the date of hiring, excluding any period before a quit or discharge. A seniority list, prepared in descending order, showing name, classification and date of hire will be posted each January and whenever a new employee is added. A copy will be supplied to the shop stewards. After June 23, 1992, should more than one employee be hired and start work on the same day, those employees shall be placed on the seniority list in alphabetical order by: last name, first name and middle name. Employees hired prior to June 23, 1992 shall have their seniority determined by order of processing. If this is not provable, alphabetical order shall prevail, providing that those that remain are qualified and able to do the work available. 10.02 Seniority shall operate on a unit-wide basis. 10.03 An employee hired into the bargaining unit following prior service in the Company's Owen Sound plant, or the Company's Service Department in Toronto will have his seniority computed, for the purpose of this agreement, from the date of his hire at Owen Sound or in the Toronto Service operation, as the case may be, except for the purpose of layoff and recall, in which case the employees bargaining unit seniority shall apply. Such transfers shall be at the sole discretion of the Company. 10.04 Promotions or transfers to positions outside the bargaining unit are not governed by the provisions of this agreement, but where an employee who has been so promoted or transferred prior to May 1st, 1982 is later transferred to a position in the bargaining unit and thereby covered by the provisions of this agreement, the time spent by such employee outside the bargaining unit will be placed to his credit and 10

his name will be entered on the appropriate seniority list with full accumulated seniority computed from the date of hiring, excluding any period before a quit or discharge. However, an employee promoted or transferred outside the bargaining unit after April 30, 1982 who is subsequently transferred back into the bargaining unit shall not have the time spent outside the bargaining unit place to his credit for seniority purposes. 10.05 An employee who is transferred for a period of not more than three (3) calendar months to another branch, plant or division of Hobart Food Equipment Group shall retain his seniority standing under this agreement including such time as may have accumulated to his credit while he is away. In the event that his transfer lasts for a period longer than three (3) calendar months, his seniority standing on return shall be subject to mutual agreement between the Company and the Union. 10.06 (a) In the event of a lay-off due to lack of work, employees will be laid off in inverse order of seniority provided that those entitled to remain on the basis of seniority are, in the reasonable opinion of the Company, qualified and suited to do the work available. This section shall not apply to temporary lay-offs of three (3) working days or less due to any temporary cause such as lack of material, power failure, breakdown or repair of machinery and equipment or relocation of machinery which may be made regardless of seniority. 10.06 (b) Employees laid off under Section 10.06 (a) of this article shall have recall rights as follows: Employees with less than one (1) year seniority shall have (12) months recall rights, or their length of service whichever is the lesser. Employees with over one (1) year seniority, shall have recall rights equal to their length of service or twenty four (24) months, whichever is the lesser. In the event of recall, laid off employees shall be recalled in order of Seniority provided that they are qualified and able to perform the work available. 10.06 (c) An employee shall lose his seniority and be deemed terminated if: (i) he loses his recall rights pursuant to 10.06 (b) 11

(ii) he voluntarily leaves the employment of the Company (iii) he is dismissed for reasonable cause and such dismissal is not reversed through the grievance and/or arbitration procedures. (iv) after having been laid off he fails to report to work within five (5) working days after having been given notice of recall unless the failure is due to accident, illness or other emergency beyond the reasonable control of the employee and which accident, illness or other emergency is verifiable. Such notice shall be sent by Priority Post to the last known address in the Company records. 10.07 For the purpose of lay-offs only, members of the shop committee will be deemed to have greater seniority than the other employees. Such special seniority is conditional upon the employee concerned having one (1) year's seniority or more. 10.08 JOB POSTING The Company will post permanent vacancies within the bargaining unit (that is, of anticipated duration of thirty (30) calendar days or more) for three (3) consecutive working days. Employees who wish to be considered will make application in writing within that period. These Job postings shall be on the Union Bulletin Board and a copy shall be given to the Chief Steward or the Steward in the absence of the Chief Steward. A successful applicant will not be eligible to make application for any other job vacancy for a period of six (6) months. All applicants will be advised of the Company's decision on his application within five (5) working days following the closing of the posting. An unsuccessful candidate will, on request, be told the reasons for his application being unsuccessful. Only the original job vacancy and the first subsequent vacancy will be posted. The Company will take seniority into consideration when making promotions to positions covered by the collective agreement. 12

ARTICLE 11 - LEAVE OF ABSENCE 11.01 The Company may grant leave of absence for legitimate personal reasons including the transaction of union business, and if leave is so granted seniority will accumulate during the period of the leave. ARTICLE 12 - POSTING NOTICES The Local Lodge shall have the privilege of posting notices approved by the Regional Service Manager or the resident executive. Bulletin Board(s) are to be provided by the Company at the time clock(s). ARTICLE 13 - SAFETY AND HEALTH SAFETY SHOES 13.01 The Company agrees that it will continue to make reasonable provision for the safety and health of employees during their hours of employment. The Union will assist in ensuring full observance of all necessary safety rules. 13.02 The Company will recognize a plant Joint Health and Safety Committee comprised of two (2) management representatives and two (2) employees selected by the Union. The function of the plant Joint Health and Safety Committee, which will meet once a month, or more often if necessary, is to fully perform the duties of the Joint health and Safety Committee as required by the Occupational Health and Safety Act and Regulations for Industrial Establishments. The Company shall assist all members of the Joint Health and Safety Committee in fulfilling their obligations as required by the Occupational Health and Safety Act and Regulations for Industrial Establishments. The parties agree to enhance the safety effort by committing to regular meetings with a training component. The company further agrees to provide the worker representative with sufficient time to prepare for said meetings. The Company further commits to have the worker representative trained in workplace inspections. 13

13.03 a) The Company will contribute one hundred and five ($105) dollars toward the cost of not more than one pair of approved safety shoes or boots per calendar year for each employee. The employee may combine the first and second year s contribution towards the purchase of safety shoes and any amount not used may be carried over and added to the third year s contribution. The wearing of safety shoes will be compulsory. Effective September 30,2006, the Company contribution will increase to one hundred and ten ($110.00). Effective September 30,2007, the Company contribution will increase to one hundred and fifteen ($115.00). b) The company agrees to pay for any courses/certification or re-certification required either by company policy or legislative requirements regarding material handling equipment (forklift). 13.04 EYE PROTECTION PLAN (a) The Company will contribute one hundred and twenty ($120.00) dollars towards the costs of the first pair of prescription safety glasses. Effective October 1, 2006, the Company will contribute one hundred and twenty-five ($125.00) dollars. Effective October 1, 2007, the Company will contribute one hundred and thirty ($130.00) dollars. The employer will pay for the examination, to a maximum of seventy-five ($75.00) dollars every twenty-four (24) months, and the employee will pay for breakage and damage that is not covered by Workers Compensation. For employees who subsequently require a prescription change, the Company will contribute on the basis of not more than once in any twelve-month period. (b) The Company will supply the first pair of planos to employees who do not wear regular glasses. The planos will remain the property of the Company. The Company will also supply replacements but the employee will be required to reimburse the Company for the cost if the replacement is occasioned by breakage or damage not covered by Workmen's Compensation. (c) All employees must wear safety glasses while in the factory. Signs to that effect will be posted at appropriate places. 14

ARTICLE 14 - HOURS OF WORK 14.01 The regular work week shall consist of forty (40) hours per week, eight (8) hours per day, five (5) days per week, Monday to Friday inclusive, starting at 8:00 a.m. and terminating at 4:30 p.m. with a thirty (30) minute unpaid lunch period from 11:30 am to 12:00 pm. 14.02 Any change in the starting and stopping times and lunch period will be discussed with the shop committee before it is put into effect. ARTICLE 15 - OVERTIME 15.01 Authorized time worked in excess of eight (8) hours in any one day, Monday to Friday inclusive, will be paid at the rate of time and one-half for the first four (4) hours of overtime, and at double time thereafter. 15.02 Authorized time worked on Saturdays will be paid at the rate of time and one-half up to eight (8) hours, and at double time thereafter. 15.03 Authorized time worked on Sundays will be paid at the rate of double time. 15.04 Authorized time worked on any of the statutory holidays listed in Article 21 will be paid at the rate of double time in addition to any statutory holiday pay to which the employee is entitled. 15.05 An employee who has left the Company premises and is called back and returns after his regular shift will be entitled to a minimum of three (3) hours' pay at the appropriate overtime rate. 15.06 The Company will give as much notice as is possible in the circumstances when overtime is to be worked. Overtime shall be offered in order of seniority provided the employees are able and available to perform the work. 15

ARTICLE 16 - REPORTING PAY 16.01 An employee who, not having previously been notified not to report for work, reports for work at his regularly scheduled time and finds that no work is available shall be provided with four (4) hours' work or given four (4) hours' pay in lieu thereof at his regular rate, provided failure to supply work is not the result of fire, flood, power failure or other condition beyond the reasonable control of the Company. Any employee so affected will take such temporary work as is available to qualify for such pay. ARTICLE 17 - SPECIAL ALLOWANCES 17.01 There will be two (2) ten minute break periods in each shift. 17.02 There will be a five-minute wash-up period prior to the end of each full shift. ARTICLE 18 - BEREAVEMENT 18.01 (a) An employee suffering bereavement in respect of the death of a close relative will be allowed three (3) days' leave of absence with pay provided an employee is scheduled for work at the time of the bereavement. In the event that the employee is unable to attend the funeral due to travel distance, the employee shall be granted one (1) day with pay as a day of mourning. (b) Close relative shall mean spouse, child (including foster-child and step-child), father, mother (including step-parents), brother, sister, mother-in-law, father-in-law, son-in-law, daughter-in-law. (c) One (1) day's leave of absence with pay will be given an employee in the event of the death of a grandparent or grandchild or brother-in-law or sister-in-law of either the employee or the spouse provided the employee attends the funeral. 18.02 An employee called upon to act as a pallbearer for a 16

deceased fellow employee will be allowed one (1) day off with pay to enable him to perform his duties. 18.03 If any bereavement falls on a scheduled vacation day(s), such vacation will be rescheduled upon mutual agreement, in accordance with the above entitlement. 18.04 Following the death of a close relative, the employee may request an unpaid leave of absence for up to ten (10) working days. All such requests shall not be unreasonably refused. ARTICLE 19 - JURY DUTY 19.01 An employee who is unable to work his regular shift because he is required to perform jury service or has been subpoenaed as a Crown witness will be paid the difference between his straight time hourly earnings for the hours he normally works on his regular shift and the jury or witness pay. 19.02 The employee will be required to provide proof of service and the amount of pay received. ARTICLE 20 - PAY ON DAY OF INJURY 20.01 If an employee is injured on the job, as a result of which he is required by the Company or a qualified physician to leave the job, he shall be paid for the balance of his regular shift. ARTICLE 21 - PLANT HOLIDAYS 21.01 The days and half-day listed hereunder will be observed as holidays. An employee shall be given the day or half-day with eight (8) hours pay for a full day or four (4) hours pay for a half-day at his regular rate, subject to the following conditions: (a) Pay for any lost time due to absence for any reason on the last full working day immediately before or the last full working day immediately after any holiday listed in Section 21.04 (and in the case of the Christmas Eve (half-day) and Christmas Day holidays on the first half of the 17

Christmas Eve shift, and in the case of the New Year's Eve (half-day) and New Year's Day holidays on the first half of the New Year's Eve shift shall be computed and the equivalent amount shall be deducted from the holiday pay of the employee absent on such days, provided however that if such absence has been authorized by the Company and commenced not earlier than five (5) full working days immediately before or terminated not later than five (5) full working days immediately after the holiday this condition shall not apply. Absence on account of certified illness or injury shall be deemed to be leave authorized by the Company for the purpose of this clause. 21.02 If a holiday falls within an employee's vacation period he shall receive holiday pay in addition to his vacation pay. 21.03 Should such holiday fall on a Sunday, the holiday will be observed on the following Monday or, by mutual agreement, on some other day. Should such holiday fall on a Saturday the Company shall have the right to designate the preceding Friday or the following Monday as the holiday for all purposes of this provision. 21.04 The holidays to which the foregoing provisions will apply are: New Year's Day Good Friday Victoria Day Canada Day Civic Holiday Labour Day Thanksgiving Day Half-Day Christmas Eve Christmas Day Boxing Day Half-Day New Year's Eve There will also continue to be in each year an additional holiday on a fixed date to be mutually agreed. ARTICLE 22 - ANNUAL VACATIONS WITH PAY 22.01 The vacation year is fixed as July 1st to June 30th, and the date for establishing vacation eligibility is 18

June 30th of each year. 22.02 Vacations with pay shall be granted to eligible employees as follows: (a) Employees with more than three (3) months but less than one (1) year of service: one (1) week's vacation with pay equivalent to 4% of the employee's earnings for the year ending June 30th. (b) Employees with more than one (1) year but less that five (5) years of service: two (2) weeks vacation with pay equivalent to 4% of the employee's earnings for the year ending June 30th. (c) Employees with more than five (5) years but less than thirteen (13) years service: three (3) weeks vacation with pay equivalent to 6% of the employee's earnings for the year ending June 30th. (d) Employees with more than thirteen (13) years of service but less than twenty-three (23) years: four weeks vacation with pay equivalent to 8% of the employee's earnings for the year ending June 30th. (e) Employees with more than twenty-three (23) years of service: five (5) weeks' vacation with pay equivalent to 10% of the employee's earnings for the year ending June 30th. 22.03 The Company will post the vacation schedule by April 15th, which can be subject to change because of special circumstances in individual cases. Requests for vacation shall be given to the Company by March 15th in each calendar year. Depending on the Company's requirements, where not all requested dates can be granted, employees will be considered in accordance with seniority. For requests received after March 15th in each calendar year, depending on company requirements, such requests will be considered in the same order as the requests are received, regardless of seniority. 19

ARTICLE 23 - WAGE RATES AND JOB CLASSIFICATIONS 23.01 Job classifications as at the commencement of this agreement and the rate ranges applicable thereto for duration of this agreement are as set forth in Schedule A annexed. 23.02 Lead Hands shall receive fifty (50)cents per hour more than the maximum paid those under him regardless of the number of employees. 23.03 An employee hired into or permanently transferred to a job classification at less than the maximum rate, will be advanced to the maximum rate as follows: (a) If the start rate is below the mid point they shall receive the mid point rate after four (4) months and the maximum rate after nine (9) months. (b) If the start rate is at or above the mid point rate they shall receive the max point after four (4) months. 23.04 Leave of absence for a period exceeding thirty (30) days will not be considered as time counted for automatic advancement under 23.03. 23.05 Increases will be effective on the first day of the pay period in which they become due. 23.06 Non-bargaining unit employees shall not perform the duties normally performed by employees in the Bargaining Unit. This shall not apply in emergencies nor to research, developmental or experimental work nor to work done by non-bargaining unit employees in the course of instruction or training. 23.07 The Company may hire Stockhandlers at the following rates and with the following conditions: Start $13.46 After 30 days worked $13.93 After 60 days worked $14.51 After 90 days worked $15.08 After 120 days worked $15.37 After 150 days worked $15.66 20

After 180 days worked $16.25 After 210 days worked $16.83 After 240 days worked $17.58 These rates will be increased by 2.75%,effective October 1 st in the second year of this contract and increased by 2.5% effective October 1 st in the third year of this contract If any employee works sixty (60) consecutive working days, he shall become a full member of the bargaining unit with all rates re-calculated. Any employees hired under this agreement will pay union dues on their first pay and monthly thereafter. Such employees are not eligible for benefits other than vacation and statutory holiday pay in accordance with the Employment Standards Act. Such employees have no entitlement under job posting and are not subject to Articles 10, 13, 18, 19, 22, 24 and Schedule "B". The company will notify the union in writing when hiring and terminating such employees. ARTICLE 24 - WELFARE 24.01 The "Hobart Employees Benefit Plan" (details of which are given in the booklet issued to employees) will be continued with the employees' contribution being set forth in Schedule "B". Changes to the Plan are: The Accidental Death and Dismemberment benefit shall be $40,000 first year, $45,000 the second year, and $50,000 the third year of the contract. Dental Care insurance shall be paid on the current ODA Fee Schedule minus one (1) year. The deductible shall be $50.00 single and $100.00 family, per annum. The annual dental expense maximum for employees and dependants shall increase to $1,200.00. The major medical deductibles shall be as follows: Single Family $40.00 $80.00 21

There is a lifetime expense maximum per individual of $ 60,000.00 in the first year, $80,000 in the second year and $100,000 in the third year. Combined Chiropractic, Osteopath and Podiatrist coverage maximum is $500 24.02 The Company will continue to pay the applicable premiums for the Ontario Health Insurance Plan (O.H.I.P.). 24.03 Defined Contribution Pension The Company will contribute in the first year 2.00%, in the second year 2.50 % and in the third year 3.00 % for each hour worked by an employee member to their individual retirement savings account. Changes to the Company contribution rate will occur on October 1, 2005, October 1, 2006 and October 1, 2007, respectively The Company will also match an employee s optional contribution at the rate of fifty cents (50 cents) for each $1.00 which the employee contributes to maximum additional Company contribution of one per cent (1%) of the employee s pay. 24.04 The weekly indemnity plan shall be registered with the Unemployment Insurance Commission. The employees share of the employer's unemployment insurance premium reduction shall be retained by the Company toward offsetting the cost of benefit improvements contained in this agreement. 24.05 Effective May 1, 1993, the Company arranged with an insurance carrier a Long Term Disability Plan which pays 50% of the employees pay based on a normal forty hour week (less any reductions). The premium shall be paid for by the employee. This benefit shall be subject to the standard pre-existing disability waivier clause and will not pay benefits for any disabilities occurring within six (6) months of the insured employee's effective date if the disability relates to any sickness or injury treated within the ninety (90) days before his or her effective date of insurance. 24.06 The Company agrees to maintain, at the current or better levels, the policy regarding company uniforms for its Warehouse employees. 22

ARTICLE 25 - TERMINATION This agreement will remain in force until June 28 th 2008 and will continue in force from year after year thereafter, unless written notice is given by one party to the other not less than thirty (30) days nor more than sixty (60) days immediately prior to the termination date, or the anniversary of the termination date of any subsequent yearly extension, that it is desired to terminate or amend the agreement. DULY EXECUTED by the parties hereto this day of 2006. FOR THE COMPANY: FOR THE UNION: 23

SCHEDULE A WAGE RATES AND CLASSIFICATIONS Effective October 1, 2005 Classification Base Rate Five Month Rate Full Rate Labourer $16.54 $16.75 $17.00 Shipper/Receiver $17.06 $17.26 $17.58 Truck Driver $17.11 $17.31 $17.64 Stock Handler $16.75 $17.26 $17.58 Maintenance $17.16 $17.47 $17.68 Shop Technician $17.67 $17.98 $18.37 Electronic Technician $18.19 $18.50 $19.01 Effective October 1, 2006 Classification Base Rate Five Month Rate Full Rate Labourer $17.00 $17.21 $17.47 Shipper/Receiver $17.53 $17.74 $18.06 Truck Driver $17.58 $17.79 $18.13 Stock Handler $17.21 $17.74 $18.06 Maintenance $17.63 $17.95 $18.17 Shop Technician $18.16 $18.48 $18.88 Electronic Technician $18.69 $19.01 $19.53 Effective October 1, 2007 Classification Base Rate Five Month Rate Full Rate Labourer $17.43 $17.64 $17.91 Shipper/Receiver $17.97 $18.18 $18.52 Truck Driver $18.02 $18.24 $18.58 Stock Handler $17.64 $18.18 $18.52 Maintenance $18.07 $18.40 $18.62 Shop Technician $18.61 $18.94 $19.35 Electronic Technician $19.16 $19.49 $20.02 24

SCHEDULE B GROUP INSURANCE PLAN (Including LTD) EMPLOYEE PREMIUM SCHEDULE EMPLOYEE CONTRIBUTIONS BASIC ANNUAL EARNINGS Single Dependent $30,000 to $39.93 $40.24 $31,999 $32,000 to $42.31 $42.63 $33,999 $34,000 to $44.39 $45.03 $35,999 $36,000 to $47.08 $47.39 $37,999 $38,000 to $49.50 $49.81 $39,999 $40,000 to $51.89 $52.51 $41,999 25

Letter of Understanding Re: Warehouse and Service Coordination During the most recent round of Collective Bargaining the parties had extensive discussions regarding the possibility of having both the Warehouse and Service bargaining units being covered by a single Collective Agreement. This letter will confirm the parties will work together during the life of this agreement identifying possible obstacles and or concerns, with the intention of finding solutions that mutually benefit the parties. To this end the parties have agreed to a common expiry date with the Service agreement, as a first step in this process. For the Company: For the Union: 26