Between:

\Norkers United Canada Council

An SEJU Affiliate

COLLECTIVE AGREEMENT

FOAM SOLUTIONS INC. Markham, Ontario

("the Company')

- and-

WORKERS UNITED CANADA COUNCIL on its own behalf and on behalf of

its Local 1591 B ("the Union')

September 1st, 2017 to August 31st, 2020

Workers United Canada Council

2800 Skymark Avenue, Unit 10A

Mississauga, Ontario L4W 5A6

Tel: (416) 510-0887 Fax: (416) 510-0891

Toll Free: 1-800-268-4064

www.workersunitedunion.ca info@workersuniteunion.ca Twitter @WorkersUnitedCA

Facebook at www.facebook.com/workersunitedcanada

My Steward is: ____________ _

Contact info: --------------

My Local President is: __________ _

Contact info: ---------------

Table of Contents

Articles: Pages:

1: Purpose ............................................................................................................... 1

2: Recognition and Coverage .................................................................................. 1

3: Management Functions ....................................................................................... 2

4: Relationship ......................................................................................................... 3

5: Anti-Harassment Clause ...................................................................................... 4

6: Union Representation .......................................................................................... 5

7: Discipline and Discharge ..................................................................................... 6

8: Grievance Procedure ........................................................................................... 7

9: Arbitration of Grievances ..................................................................................... 9

10: Strikes and Lockouts .......................................................................................... 1 O

11: Seniority ............................................................................................................. 11

12: Leave of Absence .............................................................................................. 14

13: Wages ............................................................................................................... 15

14: Welfare .............................................................................................................. 16

15: Hours of Work .................................................................................................... 17

16: Plant Holidays .................................................................................................... 18

17: Vacations with Pay ............................................................................................ 19

18: Safety ................................................................................................................ 20

19: Bulletin Boards ................................................................................................... 20

20: Weekly Check-off ............................................................................................... 21

21: Education Fund .................................................................................................. 21

22: Shift Premiums .................................................................................................. 22

23: Bereavement Pay .............................................................................................. 22

24: Correspondence ................................................................................................ 22

25: Pay of Day of Injury ............................................................................................ 23

26: Temporary Agency Employees .......................................................................... 23

27: Workers United Canada Council Uniform Policy ................................................ 23

28: Duration and Modification of Agreement ............................................................ 24

Schedule 1: Wages and Job Classifications: Time Workers - Effective September 1, 2017 ..................................................... 25 Time Workers - Effective January 1st, 2018 & September 1, 2018 ..................... 25 Time Workers - Effective September 1, 2019 ..................................................... 26

Letter of Understanding - Re: Incentive Pay ............................................................... 27

MEMORANDUM OF AGREEMENT

BETWEEN: FOAM SOLUTIONS INC.

Markham, Ontario ("the Company")

- and -

WORKERS UNITED CANADA COUNCIL on its own behalf and on behalf of its Local 1591 B

("the Union")

ARTICLE 1 - PURPOSE

1.1 The general purpose of this Agreement is to maintain a harmonious relationship between the Company and its employees and to provide an amicable method of settling any differences or grievances which may arise from time to time, and to establish and maintain mutually satisfactory working conditions, hours of work and wages for the employees hereby covered, consistent with providing for the operation of the Company's Plant under conditions which will further the safety and welfare of employees, economy of operations, quality and quantity of output and protection of Company property to the fullest extent possible.

ARTICLE 2 - RECOGNITION AND COVERAGE

2.1 The Company recognizes the Union as the sole and exclusive collective bargaining agent for all of the Company's employees in its Plant in Ontario, save and except Supervisors, persons above the rank of Supervisor, office and sales staff, persons regularly employed for not more than twenty-four (24) hours per week and students hired for the school vacation period.

2.2 The word "employee" and/or "employees" wherever used in this Agreement shall mean only the employees in the bargaining unit defined above, unless the context otherwise provides.

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2.3 Where the masculine pronoun is used herein, it shall mean and include the feminine pronoun where the context so provides.

2.4 The word "Company" used in this Agreement shall mean Foam Solutions Inc. unless the context otherwise provides.

ARTICLE 3 - MANAGEMENT FUNCTIONS

3.1 The Union acknowledges that it is exclusively the function of the Company to:

(a) maintain order, discipline and efficiency;

(b) hire, discharge, classify, direct, transfer, promote, demote, lay off and suspend or otherwise discipline employees, subject to the right of an employee who has completed the probationary period to lodge a grievance as herein provided.

(c) generally to manage the industrial enterprise in which the Company is engaged and, without restricting the generality of the foregoing, to determine the products to be manufactured, methods of manufacture, schedules of work, kinds and locations of machines and tools to be used, process of manufacturing, the engineering and designing of its products, the control of materials and parts to be incorporated in the products produced, to determine the number of personnel required from time to time, to make studies of and to institute changes in workloads, job assignments, wage payment methods and work payment rates, and also determine the extension, limitation, curtailment or cessation of operations and all other matters concerning the Company's operations not otherwise specifically dealt with elsewhere in this Agreement.

3.2 The Company agrees that these functions will be exercised in a manner consistent with the other provisions of this Agreement.

3.3 The Company and Union agree that no officers of the Company or its employees may enter into any contract inconsistent with this Agreement. Any amendment or changes as outlined in this Agreement during its term shall be incorporated only by mutual consent. It is agreed by the

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Company and the Union that this paragraph also covers working conditions, so long as it does not prevent the Company from maintaining an adequate and qualified work force, or infringes on the Management Rights clause as spelled out in this Agreement.

ARTICLE 4 - RELATIONSHIP

4.1 The Company and the Union agree that there will be no discrimination, restraint or coercion exercised or practised by either of them or their representatives or members because of an employee's membership or non-membership in the Union or because of his/her activity or lack of activity in the Union.

4.2 The Union will not engage in Union activities during working hours or hold meetings at any time on the premises of the Company without prior written approval of the Company, except as specifically permitted by this Agreement.

4.3 A Union staff representative may have access to the Company premises with forty-eight (48) hours telephone notice in order to discharge the Union's duties as the collective bargaining agent.

4.4 The Company shall provide the Union with the following information with respect to each employee in the bargaining unit and shall update it every three (3) months or upon special requests from the Union, and when new employees join the bargaining unit: names, addresses (home and email), telephone numbers, employee's birthday, classification, employment status (full-time, casual, seasonal, part-time, etc.), seniority, date of change of status if applicable and their rate of pay.

4.5 The Company agrees to make reasonable arrangements for a member of the Local Executive Committee to meet with new hires when they join the bargaining unit for up to half an hour for the purpose of informing such new members as to the contents of this Agreement, other Union information and to introduce them to the Union Committees. The Union and the members of the Local Executive Committee agree to cooperate with the Company in this regard.

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ARTICLE 5 - ANTI-HARASSMENT CLAUSE

5.1 The Union and the Company believe that the human rights of all employees must be protected, so as to ensure that every person is treated with dignity and respect.

5.2 No individual should suffer from or be exposed to harassment at work, based upon that person's race, ancestry, place of origin, colour, ethnic origin, citizenship, creed, sex, sexual orientation, handicap, age, record of criminal offences, family, marital or employment status. Harassment is a course of conduct or comment that offends or abuses a person on any of the grounds stated above, where such behaviour is known or should reasonably be known to be offensive and unwelcome.

5.3 Sexual harassment is a particularly objectionable type of discriminatory course of conduct or comment, which cannot be tolerated, as it represents an unwarranted intrusion upon a person's sexual dignity as a man or a woman. Sexual harassment may take a variety of forms, such as, unsolicited or unwelcome gender-based comments, gestures and physical contact, or the control or alteration of working conditions so as to coerce submission to sexual advances.

5.4 In order to ensure the consistent application of this policy, it is both the right and the responsibility of any employee who believes that he or she has been subjected to harassment as defined above to immediately report such concerns to the designated representative. The Company will advise the assigned Union representative of such allegation. All allegations will be fully investigated in a confidential manner. The complainant will be advised of the results of the investigation.

5.5 The Company and the Union agree that violence and bullying in the workplace will not be condoned nor tolerated.

5.6 Any employee who, as a result of a full investigation is determined to be in violation of this policy may be subject to disciplinary action, up to and including discharge from employment.

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ARTICLE 6 - UNION REPRESENTATION

6.1 In order to provide an orderly procedure for the servicing of grievances hereunder, the Union will appoint stewards whose duties shall be to assist employees in presenting their grievances to the designated representatives of the Company in accordance with the Grievance Procedure.

6.2 Employees shall not be eligible to serve as stewards unless they have completed their probationary period.

6.3 The Union will notify the Company in writing of the names of the stewards, as well as any changes in the personnel of the stewards, before the Company shall be required to recognize them.

6.4 Any employee or steward shall not leave his/her working place in connection with the servicing of a grievance hereunder until the employee has first secured permission from his/her Supervisor, which permission will not be unreasonably withheld. They shall state their destination to their Supervisor and shall report again to their Supervisor at the time of their return to work.

6.5 It is acknowledged that stewards and committeepersons have regular duties to perform as employees of the Company and will not absent themselves from work unnecessarily during working hours for the purpose of servicing grievances hereunder. In return for this undertaking, the Company will compensate such employees at their regular rates for time spent during regular working hours in attending grievance meetings with the Company. The Company reserves the right to limit the time spent in the servicing of grievances if it deems the time taken to be excessive.

6.6 At any further negotiations for the renewal of this Agreement, the bargaining unit will be represented by a Negotiating Committee consisting of not more than two (2) employees of the Company and the Union's representative. Each member of this Committee shall have at least one (1) years' seniority with the Company and shall be regular employees of the Company during their time in office. The Company will recognize and bargain with the said Committee on any matter properly

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arising on negotiations for the renewal of this Agreement. The Union shall notify the Company in writing of the names of the members of the Negotiating Committee at the time of their appointment and the Company shall not be required to recognize any committee member until it has been so notified.

6. 7 It is acknowledged that all time spent during negotiations is compensated as time worked.

ARTICLE 7 - DISCIPLINE AND DISCHARGE

7.1 In all cases of discipline (including discharge), the Company will ensure that the employee will have the assistance of a Shop Steward. Should a Shop Steward not be available, the Employee will be allowed to select a Union Employee of their choice.

7 .2 Discipline and discharge notices issued to employees must contain information and reasons for which the notice is issued. Such notices shall be issued to an employee as soon as the Company is aware of the event leading to the disciplinary actions and has had a reasonable period of time to investigate the matter. A copy shall be signed by a Management representative and the employee will be required to sign such notices as acknowledgement of receipt of same. The signing of this notice is not an admission of guilt.

7.3 The Company shall not discipline nor discharge an employee except for just and sufficient cause. When discipline is required, the principle of progressive discipline shall be followed.

7.4 No evidence from the employee's personnel file or record shall be introduced in any hearing of which the employee has not been made aware.

7.5 Employees will be granted access to their personnel file by request within five (5) working days' notice to the Company. The employee must be accompanied by a Steward and a member of the Company's Personnel Department. The meeting will take place during regular office

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business hours. The employee may not alter nor remove any contents of his/her file.

7.6 A claim by an employee who has completed his/her probationary period who has been discharged without reasonable cause shall be treated as a grievance if a written statement of such grievance is lodged with the Director of Operations of the Company within five (5) working days after the employee ceases to work for the Company and the first step of the grievance procedure will be omitted in any such case.

7. 7 Such special grievance may be settled under the grievance and arbitration procedures by:

(a) confirming the Company's action in dismissing the employee;

(b) reinstating the employee with full compensation for the time lost; or

(c) by any other arrangement which is reasonable in the opinion of the parties or the Arbitration Board if appointed.

ARTICLE 8 - GRIEVANCE PROCEDURE

8.1 The purpose if this Article is to establish a procedure for the settlement of all grievances arising in respect to the interpretation, application, administration or alleged violation of this Agreement. The Company and the Union therefore agree that the designated grievance procedure as is hereinafter set forth shall serve and constitute the sole and exclusive means to be utilized by the griever for the prompt disposition, decision and final settlement of a grievance and the specifically designated grievance procedure shall be strictly followed.

8.2 An employee who has a complaint relating to the interpretation, application administration or alleged violation of this Agreement shall discuss his/her complaint with his/her Supervisor. Such a complaint shall be brought to the attention of the Supervisor as soon as the employee becomes aware of the incident, but not later than seven (7) working days of the incident giving rise to the complaint. The Supervisor shall state his/her decision verbally within two (2) working days of receiving the complaint.

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STEP NO. 1 Should the employee be dissatisfied with the Supervisor's disposition of the complaint, the employee may, with the assistance of a Steward, refer such matter on a written grievance form supplied by the Company to the Plant Manager. The complaint shall constitute a formal grievance at Step One and shall be filed within seven (7) working days of the incident giving rise to the complaint. The grievance shall specify the Article or Articles and subsections of the Agreement of which a violation is alleged, contain a precise statement of the facts relied upon, and indicate the relief sought and be signed by the employee. The Parties will meet and discuss the grievance, at all stages of the Grievance Procedure, with the intention of resolving the matter. The Plant Manager shall answer the grievance in writing within three (3) working days.

STEP NO. 2 Should the employee be dissatisfied with the disposition of the grievance at Step One, the grievance may be referred to the Director of Operations. The grievance must be filed with the Director of Operations within seven (7) working days of the receipt of the Plant Manager's reply at Step One. The Parties will meet and discuss the grievance, at all stages of the Grievance Procedure, with intention of resolving the matter. The Director of Operations shall answer the grievance in writing within four (4) working days.

STEP NO. 3 If no settlement is reached at Step Two, the grievor, the Steward and Company representatives shall meet within eight (8) working days, or a time mutually agreed upon, to discuss the grievance. If the grievance is not settled within five (5) working days from the date of the meeting, it may be referred to Arbitration as hereinafter provided, within thirty (30 working days.

8.3 The Union or the Company may initiate a policy grievance beginning at Step Three of the grievance procedure. Such grievance shall be filed within seven (7) working days of the incident giving rise to the complaint and shall be in the form prescribed in Step One. Any such grievance may be referred to arbitration under Article 9 by either the Union in the case of a Union grievance or the Company in the case of a Company grievance. The provisions of this paragraph 8.3 shall not be used by the Union to

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institute a grievance directly affecting an employee or employees which such employee or employees could themselves institute and the provisions of Article 8 hereof shall not be by-passed.

8.4 No grievance may be submitted concerning the termination of employment, lay-off or discipline of a probationary employee, unless the Company has acted in bad faith and/or in a manner that is arbitrary.

8.5 No matter may be submitted to arbitration which has not been properly carried out through the grievance procedure within the time specified, providing that the parties may extend the time limits in the grievance procedure by mutual agreement in writing. Where a response is not given by a party within the specific time limits in the grievance procedure, the other party may submit the grievance to the next step of the grievance procedure.

8.6 Settlement in any step of the grievance procedure shall be final and binding upon both parties to this Agreement and upon any employee affected by it. The mandatory provisions of this Article 8 shall not be considered to have been waived by the parties or either of them unless they expressly provide a waiver thereof in writing.

ARTICLE 9 - ARBITRATION OF GRIEVANCES

9.1 If either Party requests that a grievance be submitted to arbitration, they shall make such request in writing addressed to the other Party to this Agreement and at the same time nominate an arbitrator.

9.2 If the Parties cannot agree on an Arbitrator within a reasonable amount of time, they may then request the Ministry of Labour for the Province of Ontario to appoint a single Arbitrator.

9.3 Any and all time limits referred to under the grievance and arbitration procedure herein may at any time be extended by written agreement between the Company and the Union.

9.4 Each of the Parties will jointly bear the expenses of the Arbitrator.

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9.5 Arbitrators shall not be authorized to make any decision inconsistent with the terms of this Agreement, nor to alter, modify or amend any part of the Agreement.

9.6 No matter may be submitted to Arbitration, which has not been properly carried through all previous steps of the Grievance Procedure.

9. 7 The single arbitrator shall not have any power to alter or change any of the provisions of this Agreement or to substitute any new provisions for any existing provisions, nor give any decision inconsistent with the terms of this Agreement.

9.8 The decision of the Arbitrator will be final and binding upon the Parties.

9.9 At any stage of the grievance procedure including Arbitration, the conferring parties may have the assistance of the employees concerned and any witnesses. Reasonable arrangements will be made to permit the conferring parties to fully investigate all the circumstances.

9.1 O A person who has been involved in an attempt to negotiate or settle the grievance at any step may not act as a single Arbitrator.

9.11 The Parties may agree to the use of a Mediator at any point of the grievance and/or Arbitration procedure. The Mediator will be chosen by mutual agreement. The Parties will jointly bear the expense of the Mediator.

ARTICLE 10 - STRIKES AND LOCKOUTS

10.1 In view of the orderly procedure for settling grievances, the Company agrees that there will be no lockout of employees during the term of this Agreement, and the Union agrees that there will be no strike, slowdown, sit down or any other action which will interfere with work or production. If any such action takes place, the Union agrees to instruct the employees to carry out the provisions of this Agreement and to return to work and perform their regular duties.

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10.2 Employees, individually or collectively have the right to refuse unsafe work in accordance with the "Occupational Health and Safety Act". This does not constitute a strike, sympathy strike, stoppages of work, walkout, slow-downs or picketing as set out above.

ARTICLE 11 - SENIORITY

11.1 An employee will be considered on probation and will not be placed on the appropriate seniority list until after the employee has completed ninety (90) calendar days' continuous employment with the Company. It is understood that probationary employees may be dismissed by the Company and the discharge of a probationary employee shall not be the subject of a grievance. Upon completion of such probationary period, the employee's name shall be placed on the appropriate seniority list of Class 5 with seniority dating from the date the employee was last hired by the Company. The following is the grouping of classifications for seniority and wage purposes:

Class 6 Trained and proficient in at least 2 work stations including printing/packing

Class 5 New hires and employees trained and proficient in up to three work stations

Class 4 Minimum one year seniority, trained and proficient in at least four work stations

Class 3 Trained and proficient in at least six work stations, including perforator and die cutting

Class 2 Trained and proficient in all work stations including foamer

Class 1 Trained and proficient in all work stations including compounding

Work stations are defined as: o Compounding o Die Cutting o Foamer o Lamination o Oven operator

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0 Perforator 0 Printing & packing 0 Shipping office 0 Slitting 0 Winder

11.2 The Company agrees to post the appropriate seniority list showing the name of each employee in the event an addition or deletion to this list has been made. After such posting, each such list shall become final with respect to the employees designated thereunder except with respect to any employee who disputes under the Grievance Procedure the accuracy of his/her seniority date within three (3) working days after the list is posted. When requested, the Company will supply the Union with an up-to-date seniority list.

11.3 When the Company decides that circumstances require a general short­term reduction in the working force, it will give at least twenty-four (24) hours' notice of lay-off. Lay-offs and recalls to work following a lay-off, will be conducted in accordance with the foregoing grouping of classifications on the basis of the employee's total seniority with the Company, provided that the employee is fully qualified in respect of skill, competence and efficiency to satisfactorily perform the work then available.

11 .4 No employee shall have bumping rights at any time for work conducted by Class 6 employees regardless of seniority. In the event where additional temporary Class 6 work is available, the Company may offer that work on a temporary basis to any other employee in the bargaining unit provided the employee is full trained and qualified to conduct such work. In such case of additional temporary work, any employee in Class 1 through 5 performing Class 6 work will be paid at the prevailing Class 6 rate.

11.5 In cases of promotions and transfers, total seniority will apply where the skill, competence and efficiency of the employees concerned are equal, provided that promotions or transfers to positions outside of the bargaining unit shall not be subject to the provisions of this Agreement.

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11.6 An employee of the Company shall, upon being transferred to a job within the bargaining unit, have seniority computed from the last date of hiring, if the employee has previously been employed in the bargaining unit.

11. 7 The Company will not be obliged to apply the seniority provisions of this Agreement when laying off employees for not more than five (5) working days.

11.8 It shall be the duty of employees to inform the Company promptly of any change in address. If an employee fails to do this, the Company will not be responsible for failure of notice to reach such employee.

11 .9 A person shall lose all seniority and shall be deemed to have quit the employ of the Company if the employee:

(a) voluntarily quits the employ of the Company;

(b) is discharged for cause and the discharge is not reversed through the grievance procedure;

(c) fails to report for work within seven (7) calendar days after being notified by the Company following a lay-off; or fails to advise the Company within three (3) days of his/her intention to report for work pursuant to the notification;

( d) is absent for three (3) consecutive working days without notifying the Company unless a reason satisfactory to the Company is given;

(e) is absent due to a lay-off for more than twelve (12) months;

(f) uses a leave of absence for purposes other than those for which the leave of absence may be granted.

11.1 O When permanent job vacancies occur for any job classification within the bargaining unit, the Company will post a notice with respect to such job on the Plant Bulletin Board for five (5) working days. Interested employees must apply in writing within such five (5) working day period of the posting. It is understood that the Company may fill the job on a temporary basis for the period of the posting. The Company will select from the applicants in accordance with the terms and conditions as set forth in Section 11.5. Should there be no qualified applicant among the

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job applicants; the Company may fill the vacancy from other sources. The original vacancy will be posted and covered by this section and all other vacancies created by the filling of the posted initial permanent job vacancy will be filled in accordance with the provisions of Section 11.5. A successful applicant will be paid at the starting rate for six (6) months for the job concerned, and shall be paid at the job rate thereafter provided the employee is fully qualified and proficient in respect of skill, competence and efficiency to satisfactorily perform the work. If after six (6) months the successful applicant is not fully qualified and proficient in respect of skill, competence and efficiency to satisfactorily perform the work, the employee will return to his/her previous job and pay rate classification.

11.11 In the event an employee is transferred from his/her regular work to perform other work at the request of the Company, and while work is still available for his/her regular work, the employee will receive the rate of earnings of his/her regular work or the rate of earnings for the other work to which the employee was transferred, whichever is the higher.

ARTICLE 12 - LEAVE OF ABSENCE

12.1 Personal Leave Leaves of absence for legitimate personal reasons may be granted by the Company on request, which will not be unreasonably refused. If any employee works elsewhere during such leave of absence without prior written permission from the Company, the employee shall be presumed to have severed his/her employment with the Company.

12.2 Union leave Leaves of absence without pay will be granted to not more than two (2) employees at the same time to attend Union conventions, subject to the following conditions:

(i) where possible at least fourteen (14) calendar days written notice in advance of the leave is given to the Company;

(ii) the total number of days of absence granted to employees, shall not exceed ten (10) working days per contract year;

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(iii) such leave does not unduly interfere with the operational requirements of the Company; and

(iv) not more than one ( 1) employee from any one Classification may receive leave hereunder at any one time.

The Company will comply with the Employment Standards Act with regards to:

Pregnancy Leave, Parental Leave, Family Medical Leave, Emergency Leave.

ARTICLE 13 - WAGES

13.1 The Company agrees to pay, and the Union agrees to accept for the term of this Agreement, the classifications and hourly wage rates hereafter set forth in Schedule I attached hereto.

All employees shall receive a wage increase over the next three (3) years. Increases will be as follows:

• Upon ratification and retroactive to September 1st, 2017 - all employees in Class one (1) through five (5) shall receive a one and half percent (1.5°/o) wage increase.

• Upon ratification and retroactive to September 1st, 2017 - all employees in Class six (6) will receive a wage increase to fourteen dollars ($14.00) per hour start rate I Fourteen dollars and thirty cents ($14.30) per hour job rate, and be enrolled in existing Company benefits currently offered to unionized employees in Classes one (1) through five (5).

Effective September 1st, 2018 - all employees in Class one (1) thougtl five (5) shall receive two percent (2.0°/o) wage increase.

• Effective January 1st, 2018 - all employees in Class six (6) will receive a wage increase to Fifteen dollars ($15.00) per hour start rate I Fifteen dollars and thirty cents ($15.30) per hour job rate.

• Effective September 1st, 2019 - all employees shall receive two percent (2.0°/o) wage increase, in all classifications

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ARTICLE 14 - WELFARE

14.1 This Article 14 is applicable to all employees within the bargaining unit except for employees in job Class 6, who are not eligible.

14.2 The Company will continue to pay one hundred percent (1 OOo/o) of the applicable premium cost for Ontario Health Insurance Plan, the Manulife Financial Extended Health Care Plan, the Life Insurance coverage (thirty-five thousand dollars ($35,000) to August 31st, 2017), and fifty percent (50°/o) of the applicable premium cost for Basic Dental coverage for all eligible employees with respect to employees who have completed their probationary period while such employees remain in the active employment of the Company. Employees will be entitled to dental check-ups every nine months and to family dental coverage of two thousand dollars ($2,000) per year.

14.3 It is understood, however, that where both a husband and wife or common-law spouse are employed by the Company, the applicable premium for only the primary household earner will be paid in accordance with the terms hereof at the applicable married premium rate with or without dependents, as the case may be.

14.4 The Company will provide a Weekly Indemnity Plan at no cost to the employees on the basis that benefits are payable from the 1st day of absence if disability is due to accident or as a result of admission to hospital, or after an absence of seven (7) working days if disability is due to illness, provided that the duration of any such paid benefits shall not exceed 17 weeks, and to pay 66-2/3 of an employee's regular straight time hourly rate to a maximum of Employment Insurance Benefits, for all eligible employees who have completed their probationary period while such employees remain in the active employment of the Company. To qualify for payments under the Plan, the employee must complete a form as directed by the Company's insurance carrier and comply with the medical requirements.

14.5 In consideration of the fact the Company agrees to provide a weekly indemnity plan that meets the requirements of a Registered Plan under the Employment Insurance Commission, the parties agree that the Company in registering the plan with the Employment Insurance

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Commission may retain the full (12/12) premium reduction granted by the Employment Insurance Commission.

14.6 An employee absent from work for illness or disability may be required to produce a Doctor's certificate from a duly qualified medical practitioner in a form satisfactory to the Company. The Company will reimburse the employee for the associated cost up to a maximum of fifty dollars ($50.00) charged by the physician. The employee may also be required to attend at the Company's Doctor at the Company's expense.

ARTICLE 15 - HOURS OF WORK

15.1 The normal scheduled hours will be on the basis of eight (8) hours per day, consisting of forty (40) hours per week, Monday to Friday. The Company may alter normal daily shift hours, or normal weekly scheduled hours, or days of work per week from time to time in order to meet production requirements. This provision shall not constitute a guarantee of hours of work per shift or of days of work per week.

15.2 Authorized work performed in excess of forty (40) hours per week (Monday to Sunday) will be paid at the rate of time and one-half (1 %) the employee's regular hourly rate. In the event the Company fails to give an employee twenty-four (24) hours' notice of overtime, the Company will pay to the employee a meal allowance of five dollars ($5.00).

15.3 Authorized work performed on Saturday, except where such work is part of an employee's first forty (40) hours of work that week, shall be paid at the rate time and one-half (1 Y2) times the employee's regular hourly rate. Authorized work performed on Sunday and Statutory Holidays ( except where such work is part of an employee's first forty (40) hours of work that week) shall be paid as the rate of two (2) times the employee's regular hourly rate.

15.4 Overtime work, when deemed necessary by the Company, will be allocated to each employee based on the employee's total seniority with the Company, provided that the employee is fully qualified and proficient in respect of skill, competence and efficiency to satisfactorily perform the work then available. If an employee is offered overtime work and

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declines such overtime work, that employee is deemed to have worked overtime for the purposes of overtime allocation and shall not be offered additional overtime work until all other employees with sufficient qualifications have had an opportunity to work ( or decline) overtime work.

15.5 An employee will be granted two (2) paid thirteen (13) minute rest periods and one (1) paid thirty-five (35) minute lunch period each shift. The rest periods will be granted by the Supervisor at the appropriate time based on production requirements

An employee working over ten (10) consecutive hours will be entitled to a thirteen (13) minutes break after the first eight (8) hours of work. Should an employee work over thirteen (13) consecutive hours, the employee will get a thirteen (13) minutes break plus a thirty-five (35) minutes meal break after the first eight (8) hours of work.

ARTICLE 16 - PLANT HOLIDAYS

16.1 Employees who have completed their probationary period shall receive the following plant holidays with pay regardless of the days on which they fall:

New Year's Day Good Friday Canada Day Labour Day Christmas Day

Civic Holiday Victoria Day Family Day Boxing Day Thanksgiving Day

and one additional plant holiday, namely Heritage Day, provided however, that until such holiday is proclaimed by the Federal Government, the Company will provide a floating holiday at a time as determined by the Company.

16.2 Plant holiday pay will be computed on the basis of the number of hours the employee would otherwise have worked had there been no holiday at his/her regular hourly rate.

16.3 In order to qualify for plant holiday pay, the employee must work his/her full scheduled shifts on each of the work days immediately preceding and immediately following the plant holiday concerned, except that in the case of an employee who is absent from work for such qualifying shifts due to a lay-off for lack of work, the employee will qualify for such holiday

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pay, provided the employee has worked during the preceding week or during the week, in which the holiday occurs or furnishes a reason satisfactory to the Company.

ARTICLE 17 - VACATIONS WITH PAY

17.1 Vacation pay will be computed on the basis of the employee's total annual earnings for the twelve-month period ending with and including the last pay period in May (excluding any vacation pay previously paid). An employee's length of service for establishing the amount of vacation with pay to which the employee the employee is entitled will be determined as of May 30th. Employees will be entitled to vacations with pay to be computed as provided in this Section 17.1 as follows:

(a) employees having one (1) or more years' continuous service, four per centum (4°/o) - two (2) weeks;

(b) employees having five (5) or more years' continuous service, six per centum (6°/o) - three (3) weeks;

(c) employees having ten (10) or more years' continuous service, eight per centum (8°/o) four (4) weeks;

(d) employees having twenty (20) or more years' continuous service, ten per centum (10°/o) - five (5) weeks;

( e) employees having twenty-five (25) or more years' continuous service, twelve per centum (12°/o) - six (6) weeks;

17.2 The periods of annual vacations will be arranged as determined by the Company. Such vacations must be taken during the applicable current year.

17.3 An employee who leaves the employ of the Company will receive vacation pay in accordance with the provisions of the Employment Standards Act, and the Regulations made thereunder.

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ARTICLE 18 - SAFETY

18.1 The Company will continue to make reasonable provisions for the safety and health of its employees while at work, and will invite representation from the Bargaining Unit Employees on the Health and Safety Committee all in compliance with the Occupational Health and Safety Act of Ontario.

18.2 The Company agrees to pay one hundred and forty-five dollars ($145.00) per year towards the purchase of safety shoes when required. The Company agrees to provide a replacement pair of safety shoes if, at any time during the year, shoes are damaged as a direct result of the Company's process or equipment. Damaged shoes must be presented to the Plant Manager for prior approval. In the event new safety shoes are purchased, employees will turn in to the Plant Manager their old pair of shoes.

18.3 Employees will be provided with protective clothing and back braces as determined by the Company at no cost to employees. Employees will undertake a Training Program.

18.4 The Company agrees to pay one hundred and fifty dollars ($150.00) every two (2) years towards the purchase of prescription safety glasses when required.

18.5 The Company will provide to the Union, copies of all Ministry of Labour inspections, orders or correspondence regarding workplace incidents or health and safety issues.

ARTICLE 19 - BULLETIN BOARDS

19.1 The Company agrees to extend to the Union the privilege of using bulletin boards to be located in the plant in locations designated by the Company, provided that the use of such bulletin boards shall be restricted to the posting thereon only of such notices as have already been signed by an authorized signing officer of the Union, and have received the prior approval of the Company.

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19.2 The Union agrees that it will not distribute or post any pamphlets, advertising or political matters, cards, notices or any other kind of literature within the plant or upon the Company's property without the prior written permission of the Company.

ARTICLE 20 - WEEKLY CHECK-OFF

20.1 The Union shall notify the Company in writing of any change in the amount of Union dues and such notification shall be the Company's conclusive authority to make the deductions specified.

20.2 The Company shall deduct from day one of employment, of all employees in the bargaining unit, from the first pay due and each pay thereafter, an amount equal to union dues as is authorized in writing by the Union and remit same by cheque or electronic fund transfer monthly to the Union office. The Company will, at the time of making each remittance, supply a statement showing the name of the employee from whose pay such deduction has been made.

20.3 The Union agrees to indemnify and save harmless the Company from any claim against the Company by any employee in respect of any deduction made under this Article.

20.4 It is mutually agreed that any of the employees covered by this Agreement may become a member of the Union if the employee wishes to do so and may refrain from becoming a member of the Union if the employee so may desires

ARTICLE 21 - EDUCATION FUND

21.1 The Company agrees to pay into Workers United Education Fund as follows:

• Effective September 1, 2017, the Company shall pay three hundred dollars ($300.00) by cheque into Workers United Education Fund.

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• Effective September 1, 2018, the Company shall pay three hundred dollars ($300.00) by cheque into Workers United Education Fund.

Effective September 1, 2019, the Company shall pay three hundred dollars ($300.00) by cheque into the Workers United Education Fund.

ARTICLE 22 - SHIFT PREMIUMS

22.1 Shift employees working regularly scheduled shifts will receive an off­shift premium of fifteen cents (15¢) per hour for shifts beginning at approximately 10:30 am, fifty cents (50¢) per hour for the afternoon shift and fifty cents (50¢) per hour for the night shift. Such off-shift premium will not be paid for any hour in which an employee receives an overtime rate and such off-shift premium will not form part of an employee's regular hourly rate.

ARTICLE 23 - BEREAVEMENT PAY

23.1 An employee will be granted up to five (5) days' leave of absence at his/her regular hourly rate at death of the employee's mother, father, spouse, child, brother, sister, mother-in-law, father-in-law, grandfather and grandmother.

23.2 An employee will be granted three (3) days' leave of absence at his/her regular hourly rate to make arrangements for and to attend the funeral of the employee's grandchild, daughter-in-law, son-in-law, brother-in-law and sister-in-law.

ARTICLE24-CORRESPONDENCE

24.1 Except where otherwise provided, any notice which either party desires to give to the other shall be given by prepaid registered mail addressed as follows:

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To the Company:

To the Union:

Foam Solutions Inc. 259 Steelcase Road West Markham, Ontario L3R 2P6

Workers United Canada Council 2800 Skymark Avenue, Unit 1 OA Mississauga, Ontario L4W 5A6

A copy of such notice will be forwarded by the Company to the Local Union President.

ARTICLE 25 - PAY ON DAY OF INJURY

25.1 An employee injured at work will be paid on the basis of his/her regular straight time hourly rate for time lost and having such injury attended to, provided the employee returns to work on the same shift. If the injury is such that the employee cannot return to work on the same shift, the employee will be paid on the basis of his/her regular straight time hourly rate for the remainder of such shift.

ARTICLE 26 - TEMPORARY AGENCY EMPLOYEES

26.1 If there is a layoff, all temporary employees shall be the first to be laid off. Part-time employees will be laid off prior to the layoff of full-time employees, provided that the full-time employee(s) is fully qualified in respect of skill, competence and efficiency to satisfactorily perform the work then available and to perform this work at the employee(s) job Classification Rate. Class 6 work is excluded from the provisions of this Article 26.

ARTICLE 27 - WORKERS UNITED CANADA COUNCIL UNIFORM POLICY

27.1 The Company will use all reasonable efforts to assure that all uniforms and clothing issued and/or purchased by the Company shall, wherever possible, be union made.

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ARTICLE 28 - DURATION AND MODIFICATION OF AGREEMENT

28.1 This Agreement shall commence on the 1st day of September, 2017 and shall continue in effect until the 31st day of August, 2020 and shall continue automatically thereafter for normal periods of one (1) year each unless either party notifies the other in writing during the two (2) month period immediately prior to the expiration date that it desires to amend or terminate this Agreement.

IN WITNESS WHEREOF each of the parties hereto has caused this Agreement to be signed by its duly authorized representatives this day

19th of January , 2018

FOR THE COMPANY FOR THE UNION

~·

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SCHEDULE1 WAGES AND JOB CLASSIFICATIONS

TIME WORKERS FABRICUSHION LTD.

Effective September 1st, 2017 (1.So/o)

CLASS STARTING RATE JOB RATE

6 14.00 14.30

5 15.50 15.90

4 18.67 19.12

3 20.31 20.82

2 20.76 21.16

1 21.73 22.18

Effective January 1st, 2018

CLASS STARTING RATE JOB RATE

6 15.00 15.30

Effective September 1st, 2018 (2.0%)

CLASS STARTING RATE JOB RATE

5 15.81 16.22

4 19.04 19.50

3 20.72 21.24

2 21.18 21.58

1 22.16 22.62

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Effective September 1st, 2019 (2.0o/o)

CLASS STARTING RATE JOB RATE

6 15.30 15.61

5 16.13 16.56

4 19.42 19.89

3 21.13 21.66

2 21.60 22.01

1 22.60 23.07

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Letter of Understanding

Between:

FOAM SOLUTIONS INC. Markham, Ontario

("the Company")

- and -

WORKERS UNITED CANADA COUNCIL on its own behalf and on behalf of its Local 1591 B

("the Union'?

To promote the alignment of goals for the Company and its employees, from October 1, 2014 to September 31, 2017 and coinciding with the Company's fiscal year, the Company will provide an incentive plan to all members of the bargaining unit based on the profitability of the Company.

Incentive pay will be paid to employees provided the Net Income Before Tax (NIST) in each fiscal year of this Letter of Understanding exceeds $200,000. No incentive pay will be paid if the NIST is less than $200,000.

If the NIST in any fiscal year is equal to or greater than $200,000, the Company will pay each employee $200.00 within three (3) months of the year-end (by December 31 ). In addition, for each increment of $100,000 of NIST achieved by the Company in the fiscal year in excess of $200,000, each employee will receive an additional $100.00 within three (3) months of the year end. In the case where an employee had not been employed by the Company for the full fiscal year, that employee will receive a time prorated amount of the eligible incentive pay. All incentive payments are considered regular earnings and are subject to the standard payroll deductions as required by law, and will be included in T4 slips.

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y

Net Income Before Tax calculations are based on internal financial statements (and such statements are reviewed by external third parties such as BOO).

This day ____ 1 __ 9_th ___ of __ J ...... a ...... n ...... u ....... a __ ry __ , 2018

FOR THE COMPANY FOR THE UNION

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