Between:

LONDON SALESPERSONS AGREEMENT

N. TEPPERMAN LIMITED

(Hereinafter referred to as the "Company")

-and-

NATIONAL AUTOMOBILE, AEROSPACE, TRANSPORTATION AND GENERAL WORKERS UNION (CAW-CANADA) LOCAL 414

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(Hereinafter referred to as the "Union")

Effective: July 28th, 2018 to July 27'1\ 2021

Ratification Date: November 18, 2018

TABLE OF CONTENTS

ARTICLE I - PURPOSE

ARTICLE 2 - RECOGNITION

ARTICLE 3 -NO DISCRIMINATION

ARTICLE 4- MANAGEMENT RIGHTS

ARTICLE 5 - UNION SECURITY

ARTICLE 6 - UNION REPRESENTATION

ARTICLE 7-NO STRIKES, CESSATION OF WORK OR LOCKOUTS

ART! CLE 8 - GRIEVANCE PROCEDURE

ARTICLE 9 -ARBITRATION

ARTICLE IO - SENIORITY

ARTICLE 11 - LEAVE OF ABSENCE

ARTICLE 12-VACATIONS

ARTICLE 13 - PAID HOLIDAYS

ARTICLE 14-HEALTH AND WELFARE PLAN

ARTICLE IS-RATES OF COMMISSION

ARTICLE 16-BEREAVEMENTLEAVE

ARTICLE 17 - HOURS OF WORK

ARTICLE 18-GENERAL

ARTICLE 19 -JURY DUTY PAY

ARTICLE 20- DURATION OF AGREEMENT

SCHEDULE "A" -PAY STRUCTURE

SCHEDULE "B" - MAILER MONDAY SCHEDULES

SCHEDULE "C" -PART-TIME EMPLOYEES

SCHEDULE "D" - HEAL TH & WELFARE PLAN

SCHEDULE "E" - SCHEDULES

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LETTER OF UNDERSTANDING #1 - SPIFFS

LETTER OF UNDERSTANDING #2 - SOCIAL JUSTICE FUND

LETTER OF UNDERSTANDING #3 - PERFORMANCE MANAGEMENT STANDARDS

LETTER OF UNDERSTANDING #4 - INTERNET SALES

LETTER OF UNDERSTANDING #5 - GENERAL MEETING

LETTER OF UNDERSTANDING #6 - LABOUR MANAGEMENT MEETINGS

LETTER OF UNDERSTANDING #7 - EDUCATION FUND

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ARTICLE 1 - PURPOSE

I.OJ The purpose of this Agreement is to establish and maintain an orderly collective bargaining relationship between the Company and its employees, to establish and maintain mutually satisfactory working conditions, hours or work, wages, and other conditions of employment for all salespersons who are subject to the provisions of this Agreement and to provide machinery for the prompt and equitable disposition of grievances which may arise in the interpretation, application, administration and alleged violation of this Agreement.

1.02 The Union recognizes that the business in which the Company is engaged is highly competitive and that the Company must be able to maintain an efficient, cost effective operation and improve itself in a highly competitive market and the Union agrees to support the Company in obtaining these objectives, all of which are consistent with this Collective Agreement.

ARTICLE 2 - RECOGNITION

2.01 The Company recognizes the Union as the sole and exclusive bargaining agent for all salespersons employed by the Company in the City of London, save and except supervisors, persons above the rank of supervisor, office and clerical staff.

ARTICLE 3 -NO DISCRIMINATION

3.01 The Company and the Union agree that there will be no discrimination against any employee based on any protected ground under the Ontario Human Rights Code, or membership or non­membership in the Union, or activity in the Union or lack thereof.

3.02 The Union further agrees there will be no solicitation of members, collection of union dues (except as otherwise provided in this Agreement) or other Union activity at the work location or on the premises of the Company.

ARTICLE 4 - MANAGEMENT RIGHTS

4.01 The Union acknowledges that it is the exclusive right of the Company to:

(a) operate and manage its business in all respects;

(b) maintain order, discipline and efficiency among its salespersons;

(c) hire, direct, promote, retire, demote, transfer, classify, lay-off, discharge, suspend, reprimand and discipline for reasonable cause, its salespersons provided, however, that any claim by a salesperson that the salesperson has been discharged or otherwise disciplined without reasonable cause may be the subject of a grievance and dealt with as hereinafter provided;

(d) determine the nature and kind of business conducted by the Company, the products to be carried, the kinds and locations of equipment, merchandise, goods, fixtures and type of customer service to be used, the control of materials and goods, the methods and techniques or work, the schedules of work, number of personnel to be employed; starting and finishing times and overtime requirements; make studies of and institute changes in jobs and job assignments; discontinue, reorganize, limit, combine, substitute any

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operation, department of part thereof; and determine all other functions and prerogatives which shall remain solely with the Company;

(e) Make and alter from time to time reasonable rules and regulations to be observed by its salespersons which shall not be discriminatory in nature, or inconsistent with the provisions of this Agreement.

4.02 It is understood and agreed that the Company's non-exercise of any right or function shall not be deemed a waiver of its rights to exercise such right or function.

4.03 It is understood and agreed that non-bargaining unit personnel may perform bargaining unit work provided it does not displace existing bargaining unit personnel.

4.04 (a) Customers who contact management personnel directly, save and except, house accounts and institutional customers, will be referred to the first available salesperson unless the customer identifies an original salesperson, if available. If the original salesperson is not available, the customer will be referred to the first available salesperson.

(b) During "sales events" where sales representatives, travelers and management personnel, save and except owners, work the event, they shall refer all sales orders to a salesperson, if available.

(c) It is understood and agreed that where a warehouse employee expresses an interest in or an aptitude for sales, he will be given an interview if a sales opening occurs.

( d) The parties agree that personal customers of management or orders which are written by management where no salesperson is available, will not be subject to commission rates for bargaining unit members; however, management will endeavour to find the original salesperson, if one was involved.

ARTICLE 5 - UNION SECURITY

5.01 (a) The parties agree that all present salespersons covered by this Agreement who are members of the Union and all new salespersons covered by this Agreement, upon the successful completion of the probationary period, shall, as a condition of their continued employment, become and remain members of the Union in good standing.

(b) Commencing the month following the date of signature of this Agreement, the Company agrees to deduct from the wages of each salespersons who is covered by this Agreement and remit to the Union an amount equal to the monthly dues of the Union as may be determined by the Union's Bylaw from time to time, provided sufficient unencumbered wages remain.

(c) Union dues will be based on commission earnings in the previous month divided by one­hundred and sixty-five (165) multiplied by two and one half (2.5) hours.

5.02 (a) The deductions as set forth above shall be deducted from the last pay of each month and shall be remitted to the responsible officer of the Union, as designated in writing by the Union. The Company will at the same time submit a list of the salespersons from whose pay such deductions have been made. This list shall include the salespersons' names, status (male or female) and a notation of any salespersons who have not paid full dues in

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the given month and the amount of their arrears shall be included in this list. The salespersons' names as being in arrears and the amounts noted as arrears shall be remitted with the salesperson's next regular dues payment to the Union office and be noted as an arrears payment for the named salesperson(s).

(b) The dues of the salespersons which were not deducted due to a mistake will be deducted in double amounts the following month and each month thereafter until arrears are fully paid. The Union shall furnish to the Company, once a month, a list of the member salespersons whose dues are in arrears indicating the reasons.

(c) The Company will not be responsible for the collection of any dues where, because of absence from work, the salesperson has earnings in the pay period less than the amount of dues or fees to be deducted.

(d) In the event that the Union requests the Company to change the amount of the Union dues deducted or the method of calculation, it shall provide the Company with written notice and the Company shall, where possible, make such adjustments on the first pay following thirty (30) days from the receipt of the aforementioned notice.

5.03 It is understood and agreed that the Union will save harmless the Company from any and all claims which may arise against it by a salesperson for amounts deducted from wages herein above provided.

ARTICLE 6 - UNION REPRESENTATION

6.0 I The Company shall recognize two (2) stewards representing the sales personnel. The stewards shall be chosen by members of the bargaining unit or appointed by the National Representative, and recognition shall be conditional upon the stewards having attained seniority under this Agreement. In addition to the above, the Company shall recognize one (I) additional steward who shall be known as the alternate steward and shall act only in the absence of the regular stewards.

6.02 The Company shall recognize the stewards and alternative steward only after having been informed by the Union in writing of the names of such stewards. The Union agrees to notify the Company of any changes in the stewards.

6.03 (a) It is agreed that the stewards shall have normal duties to perform and, therefore, it is agreed the investigation and processing of grievances will, where practicable, be conducted outside normal working hours. However, if it is necessary for a steward to leave his work station during normal working hours the steward shall first obtain permission from his immediate supervisor. Such permission will not be unreasonably withheld.

(b) The Company agrees to pay two (2) stewards twenty-five ($25.00) dollars for each hour (pro-rated for each hour) for attendance at meetings with the Company at Step 2 and Step 3 of the Grievance Procedure, if such meetings take place during the regular working hours of such steward(s).

6.04 It is understood and agreed that only salespersons whose jobs are covered by this bargaining unit shall have the right to vote at any time where matters pertaining to this or any matter between the Company and the Union are being voted upon.

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6.05 No salesperson or group of salespersons is authorized to represent the steward in any meeting with management except with written consent of the Union.

6.06 It is understood that a full-time Union Representative, whenever entering the Company premises, shall first secure permission of the salesperson's Manager or a designated representative. Such penmission shall not be unreasonably withheld.

6.07 (a) The Company agrees to recognize a Negotiating Committee comprised of not more than two (2) salespersons.

(b) The Company and the Union agree to pay fifty percent (50%) of the cost for the negotiations meeting room.

6.08 The Company agrees, consistent with operating efficiency, to grant a leave of absence of up to a combined total of thirty (30) working days in each calendar year for the purpose of allowing stewards or elected members to attend a Union conference or convention. There will not be more than two (2) elected members off at any one time. Such leave of absence shall be without pay and shall not cause any loss of seniority for the stewards or employees and may be extended by mutual agreement. The Union shall provide the Company with one (1) month's advance notice in writing and indicate the dates of the requested leave.

6.09 If required, monthly meetings will be held between the Company and the stewards upon notification by either party.

ARTICLE 7 -NO STRIKES, CESSATION OF WORK OR LOCKOUTS

7.01 There shall be no strike, concerted work stoppage, slowdown or other activity designated to interfere with or restrict production by the Union or by any salesperson during the term of this Agreement. It is further understood and agreed that should there be any strike, concerted work stoppage, slowdown or other such activity by any of the salespersons that the Union shall make and continue to make, every effort to prevent or stop such action.

7.02 There shall be no lockout by the Company during the term of this Agreement.

ARTICLE 8 - GRIEVANCE PROCEDURE

8.01 The Company and Union agree that it is the purpose of the grievance procedure to amicably and fairly settle any complaints and disagreements arising under this Agreement concerning full-time and part-time salespersons who have served their probationary period. The parties further agree that the settlement of any grievance shall be deemed not to conflict with the provisions of this Agreement. In addition, it is agreed that a salesperson has no grievance until the employee has first given his immediate supervisor the opportunity to adjust the salesperson's complaint.

8.02 Should differences arise between the Company and a salesperson with seniority as to the interpretation or application or alleged violation of the provisions of this Agreement, work shall continue as directed by management and an effort shall be made to settle such differences in the following manner:

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Step One

If a salesperson who has completed the probationary period has any complaint or question which the salesperson wishes to discuss with the Company, the salesperson shall take up the matter with the salesperson's Manager within three (3) working days of the day the alleged grievance arose. Should the salesperson request, the salesperson may be accompanied by the salesperson's steward. In the event such a complaint or question is not settled within five (5) working days from the date of the occurrence of the incident, the grievance may be processed to the next step.

Step Two

If the grievance was not resolved at the first step, it must be reduced in writing and submitted to the salesperson's Manager or designated representative within a further delay of two (2) working days. Should the salesperson's Manager be away at the time the written grievance is received, the matter will be held in abeyance until the salesperson's Manger's return, which shall not exceed two (2) weeks, from which time the time limits shall recommence. Within three (3) working days from the date of receipt of the written grievance if the grievance has not been resolved, it shall be referred to the Grievance Committee.

Step Three

The Grievance Committee shall be composed of not more than two (2) stewards and a full-time Staff Representative of the Union and not more than three (3) representatives ofthe Company and shall meet within five (5) working days after the receipt of the grievance. If the grievance is not resolved within a further three (3) working days, the dispute shall be referred to arbitration within fourteen (14) working days following the answer in accordance with the procedure set forth hereinafter.

8.03 Should the Company or the Union wish to file a grievance concerning the interpretation, application or alleged violation of this Agreement by or against one or more salespersons or by the Union or the Company, they may do so commencing at the Second Step of the grievance procedure by submitting their grievance in writing to a steward or salesperson's Manager.

8.04 Each step to be taken under the grievance procedure and any reference to arbitration shall be taken within the time limits set forth in Article 8 or Article 9 or the matter shall be deemed to have been abandoned. A step is deemed to have been taken when written notice is given by the party who filed the grievance.

8.05 The time limits may be extended by mutual agreement in writing between the salesperson's Manager or designated representative and the full-time Union Representative or, in the full-time Union Representative's absence, a steward.

8.06 For the purpose of Article 8 and 9, working days exclude Saturdays and Sundays, and paid holidays.

8.07 No salesperson or steward shall leave work to process any grievance under this Agreement without notice to and permission from the salesperson's Manager, or in the salesperson's Manager's absence, from the next higher in line of authority. The salesperson's Manager shall not unreasonably withhold such permission.

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8.08 A full-time Representative of the Union may be present commencing at the Third Step of the grievance procedure as set forth in Clause 8.02.

8.09 It is understood and agreed that the specific penalty for the following infractions may be subject to discipline up to and including discharge:

(a) Misappropriation of funds, or any other fraudulent activities;

(b) Theft or aiding in the commission of theft;

(c) Unauthorized access to, entry into, possession of or disclosure of confidential infonnation regarding the affairs of the Company or any of its customers;

(d) Reporting for work or working while in possession of, or being under the influence of, alcohol or un-prescribed drugs;

(e) Falsification ofan application for employment or documents related thereto;

(f) Falsification of a customer credit application or documents related thereto;

(g) Falsification of sales documents or customer invoices;

(h) Misrepresentation of the nature, capacities, attributes or warranties of any product or service sold by the Company.

8.10 A salesperson who has served the probationary period and is discharged, or suspended, may file a grievance at Step Three of the grievance procedure within three (3) working days after such action is taken.

8.11 Warning letters will be removed from the salesperson's file no later than twenty-four (24) months from the date of issue provided the salesperson's record is clear of related offences during that period.

ARTICLE 9-ARBITRATION

9.01 In the event that the grievance concerning the interpretation, application, administration or alleged violation of this Agreement shall not have been satisfactorily settled under the provisions of Article 8, the matter may then be referred to arbitration by notice in writing by one party to the other within fourteen (I 4) days from the decision of the Company or the Union. The notice shall contain a copy of the grievance, the settlement requested and a list of suggested Sole Arbitrators.

9.02 The parties shall endeavour to agree upon a Sole Arbitrator within fifteen (15) days of the notice. If the nominees are unable to agree upon a Sole Arbitrator within the specified period then either party may request that the Minister of Labour make such appointment.

9.03 Each grievance submitted to arbitration shall be heard separately except where the parties agree that one or more grievances ought to be consolidated.

9.04 The issue(s) raised in the written grievance shall be presented to the Sole Arbitrator and its award shall be confined to such issue(s). The finding of the Sole Arbitrator as to the facts and as to the interpretation, application, administration or alleged violation of the provisions of this Agreement

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shall be conclusive and binding on all parties concerned, but in no case shall the Sole Arbitrator be authorized to alter, modify or amend any part of this Agreement.

9.05 The Company and the Union share equally the expenses of the Sole Arbitrator. The costs and allowances to be paid to witnesses shall be paid by the party calling such witness.

9.06 No matter shall be submitted to, or dealt with by, the Sole Arbitrator which has not been previously and properly carried through all steps of the grievance procedure.

ARTICLE 10 - SENIORITY

IO.OJ A salesperson will be considered on probation until the salesperson has successfully completed the probationary period ofone hundred and twenty (120) calendar days. The salesperson's date of seniority shall become effective one hundred and twenty (120) calendar days prior to the date of his successful completion of the probationary period and shall be deemed the salesperson's last date of hire. The Company will notify the stewards of those salespersons who successfully complete their probationary period.

For regular days not worked for illness or other reasons, the probationary period will be extended to cover the regular days missed.

10.02 Notwithstanding any other provisions of this Agreement, the termination, lay-off or discharge of any salesperson on probation shall be at the sole discretion of management. No arbitrator or arbitration board shall have the jurisdiction of any disciplinary action which is imposed on a probationary salesperson. This clause is subject to the Labour Relations Act of Ontario.

10.03 (a) The Company shall post and up-date the seniority list every six (6) months, indicating the salesperson's name, classification, and last date of hire, and send a copy to the Local Union office and each steward.

(b) A salesperson shall have five (5) working days to challenge the seniority list with respect to the salesperson's seniority. Thereafter the seniority date of each salesperson shall be deemed to be conclusive.

10.04 "Seniority" where used in this Agreement, shall mean the relative status of persons employed by the Company in accordance with the length of their continuous service (i.e. unbroken) since the last date of hiring as shown by the Company's records, and, for the purpose of this Agreement, service shall not be deemed broken by a lay-off until seniority is lost as hereinafter provided. Continuous service and seniority shall be considered as synonymous and shall be calculated in terms of days, months and years. Where two (2) or more salespersons are hired on the same day, their relative status will be determined by the date and time of the applications for employment.

10.05 Seniority rights of a salesperson shall cease and the salesperson's employment shall be automatically terminated for any of the following reasons:

(a) if the salesperson quits, retires or resigns for any reason;

(b) if the salesperson is discharged for cause and the discharge is not reversed through grievance or arbitration procedures;

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(c) if the salesperson is absent from work for two (2) consecutive working days without notifying the Company, unless reason satisfactory to management is given for failure to notify (proof of illness will be considered a satisfactory reason);

( d) if a salesperson, having been laid off, fails to notify the Company of the salesperson's intention to return to work within three (3) calendar days of the date of mailing by registered mail to the salesperson of notice to return to work; and fails to report to work within seven (7) calendar days of such mailing. The post office registration receipt shall be proof of the date of mailing. Notwithstanding the foregoing, a salesperson shall not lose seniority rights or the right to further recall by reason of the fact that the salesperson is unable to report to work because the salesperson is disabled by illness or accident for a period not to exceed twelve (12) months;

(e) if the salesperson is laid off for a continuous period in excess oftwelve (12) months;

(f) if the salesperson fails to return to work upon the expiration of an authorized leave of absence, unless a reason satisfactory to the Company is given;

(g) if the salesperson works for another employer while absent from his employment with the Company except while on lay-off, unless the Company grants leave of absence to perform such other work in writing.

10.06 All the terms and conditions of employment covering students, temporary and part-time salespersons shall be set out in Schedule "B" to this Agreement. Whenever there is a conflict between any other provisions of this Agreement and any provision in Schedule "B", the latter shall prevai I.

10.07 In the event of a lay-off, the salesperson with the greatest seniority by department will be the last to be laid off and conversely the first to be recalled from lay-off, provided the salesperson possesses the necessary qualifications, skill and present ability to perform the work required and efficiently meet the operational requirements of the Company. Notwithstanding the above, when it is necessary to lay-off salespersons, probationary salespersons by department shall be laid off first.

10.08 Transfers Out of the Bargaining Unit

A salesperson selected or appointed to a position with the Company outside the bargaining unit shall retain and continue to accumulate seniority for a period not to exceed one ( 1) year.

If the salesperson is later transferred back to a position covered by the bargaining unit, then the service accumulated shall be counted for the purpose of detennining seniority, provided the salesperson has not been transferred out of the bargaining unit for a period exceeding one (I) year.

10.09 New or Vacant Positions

Where the Company decides a full-time new or vacant position exists in any sales department, the Company agrees to post such vacancy for ten (I 0) working days, concurrently internally and externally. The Company further agrees that the position will not be filled during this 10 day period.

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(a) The Company will determine the suitability of candidates who wish to move to a different classification. If ability, suitability and qualifications are relatively equal, then length of service shall govern.

(b) If the Company is satisfied that nobody who has applied is suitable or qualified for the job, the Company may fill the position at its discretion.

I 0.10 Departmental Transfers

Where the Company detennines that a vacant position exists in a sales department, in accordance with Article 10.09 (a), and the Company determines that an employee in the bargaining unit (i.e. an internal applicant employed in another department) is suitable and qualified for the vacant position, the employee will be required, as a condition of employment in the new position to serve a probationary period of ninety (90) days worked. During the probationary period provided by this Article, the employee shall, at a minimum, satisfy the following conditions:

I. the employee's written sales volume must at least meet the average of the employees in the department by the day before the end of the probationary period (based on the sixty to ninety worked day period); and

2. the employee's dollar value of average sales must at least meet the average of the employees in the department by the day before the end of the probationary period; and

3. the employee's sales of warranty products must at least meet the average of the employees in the department by the day before and the end of the probationary period.

The probationary period provided by this Article shall exist in addition to the probationary period described in Article 1 O.Dl of the Collective Agreement for new hires.

If the Company determines that the employee has failed to satisfy any of the above described conditions, the employee may be returned by the Company to the department which he most recently left, provided that there is a vacancy in that department which the Company intends to fill. Otherwise, the employee will remain in that department until a vacancy occurs in their former department, at which time the employee will transfer back to their original department.

10.11 An employee hired on a temporary basis to replace an employee on pregnancy and/or parental leave will not be placed on the seniority list unless the temporary employee remains as an employee of the Company following the conclusion of the pregnancy and/or parental leave. If placed on the seniority list, seniority will date back to the first worked day.

ARTICLE 11 - LEA VE OF ABSENCE

11.01 A salesperson upon application and upon two (2) weeks' notice in writing may be granted a leave of absence, for sickness or sickness in the family, continuing education, extended vacation, etc. subject to the continued efficient operation of the business, without pay and without loss of seniority at the discretion of the salesperson's Manager. Approval of such leave shall be in writing from the salesperson's Manager. Such leave shall not be unreasonably denied.

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11.02 It is agreed and understood that such written requests for leaves of absence shall state the departure and return dates and the reason for such leave shall be for a period not to exceed three (3) months.

11.03 The Company shall grant a leave of absence for a maximum of twelve (12) consecutive months to any one salesperson who is selected to fill an office in the Union, provided application for such leave is made at least one (1) month in advance. Any such leave of absence shall be without pay and without the other benefits in this Agreement, but the salesperson's seniority shall continue to accumulate during such leave of absence.

11.04 Employment Standards Act Leave

An employee shall be granted a leave of absence in accordance with provisions of the Employment Standards Act.

ARTICLE 12 - VACATIONS

12.01 Salespersons accrue vacation time as per hire date and are eligible for annual paid vacation based upon their length of service as follows:

Schedule "A" Completed Years of Service Vacation Time Vacation Pay at Jan. 1" of the Current Accrual Year

Less than 1 year Option: Pro-rated according to Schedule B, or 2 weeks 4%

1-4 years 2 weeks 4% 5-9 years 3 weeks 6%

10-19 years 4 weeks 8% 20 years and over 5 weeks 10%

All individuals will accrue vacation dollars to be used in the following calendar vacation year based on the vacation policy and the month they achieve new vacation entitlement (i.e. when they achieve a milestone, they will accrue vacation pay from their anniversary date to be used in the next calendar year/vacation year).

Employees will receive pro-rated unpaid vacation day(s), when they achieve their anniversary date in the switch over year (ie: when a salesperson achieves their 5 year anniversary date). Salespersons will then receive their full allotment of vacation days the following vacation calendar year and vacation dollars earned from previous year as stipulated above.

For the purposes of this Agreement, commission earnings shall include Spiffs as reported on the Revenue Canada T-4 slip and excludes taxable benefits and vacation pay.

Schedule "B" Month of Days Accrued to be used Month of Days Accrued to be used Start After Jan. 1 of the Start after Jan. 1 of the following

following year year Jan. 9 Jul. 3 Feb. 8 Aug, 2

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7 Apr. 6 May 5 June 4

Sep. Oct. Nov. Dec.

2 2

12.02 Vacations shall be scheduled between January 1st and December 31st any year following the year in which they were earned. The Company agrees to post a vacation scheduled form by February I st each calendar year, by department. A salesperson will submit his request for a preference of vacation dates covering the salesperson's vacation entitlement by March I st, in order that the Company may finalize and post vacation schedules by April 1st.

l 2.03(a)

(b)

(c)

(d)

(e)

The summer vacation period shall be from May I st to September 30°'. Vacations shall be assigned on a rotating basis on seniority with the selection of two (2) weeks maximum at one time during the summer vacation period. If after the initial assignment has been made there are remaining weeks left open in the summer vacation period, these weeks will be assigned in increments of one week(s) based on seniority.

It is understood that vacation periods, once arranged, can only be changed after a discussion between Management, the steward(s) and the salespersons when more than one salesperson would be affected by such change.

It is understood vacation entitlement may not be accumulated from year to year and that employees are required to take their full vacation entitlement every year.

Salespersons are required to take their vacation entitlement.

It is understood that there will be no pyramiding of vacation pay.

12.04 It is agreed that the salesperson who has completed one previous year's work service with uninterrupted seniority thereafter shall, upon leaving the employ of the Company, receive the vacation pay to which the salesperson is then entitled under this Agreement. However, if a salesperson fails to give the Company two (2) weeks' advance notice in writing of leaving or if the salesperson is discharged for just cause, the employee shall be entitled to vacation pay at four percent (4%) of gross earnings prior to completing five (5) years of service and six percent (6%) after completing five (5) years of service instead of any greater amount.

12.05 The Company will schedule vacations by department based on seniority, individual preference and the requirements of the business. If requested, the Company will endeavour to schedule as many salespersons on vacation on the same weeks as operationally feasible. When conflicts arise in vacation scheduling between persons in the same classification which cannot be resolved, seniority will be the governing factor.

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ARTICLE 13 - PAID HOLIDAYS

13.01 The following shall be considered as paid holidays:

New Year's Day Family Day Good Friday Victoria Day Canada Day

Civic Holiday Labour Day Thanksgiving Day Christmas Day Boxing Day

It is optional to work any of the days as set out above.

13.02 (a)

(b)

Each regular full-time salesperson with seniority shall receive holiday pay in accordance with the Employment Standards Act based on the salesperson's previous thirteen (13) week commission earnings, base pay, plus vacation pay paid during that period, if any, divided by sixty-five (65) calculated from the previous month end. Holiday pay will be paid with the next regular pay following the holiday.

Each part-time salesperson who qualifies for holiday pay in accordance with the Employment Standards Act shall receive holiday pay based on the pa11-time salespersons thirteen (13) week commission earnings divided by the number of days scheduled in the period.

13.03 In order to qualify for paid holiday pay, as enumerated above, the regular full-time salesperson must have:

(a) met the qualifications per the Employment Standards Act;

(b) worked the salesperson's full regularly scheduled work-day immediately preceding and the salesperson's full regularly scheduled work-day immediately following the holiday unless a reason suitable to the Company is given including a provable certified illness; and

(c) worked during the paid holiday, if the salesperson has been requested unless a reason suitable to the Company is given.

13.04 In the event that one or more of the above paid holidays occurs during a salesperson's vacation, such salesperson shall receive one (1) extra day consecutive with his vacation.

ARTICLE 14-HEALTH AND WELFARE PLAN

14.01 The Company shall, during the term of this Agreement, maintain and pay the proportion of costs of the Health and Welfare Benefit Plan described below.

14.02 The Company agrees to continue the Group Insurance Plan (or a Plan with equivalent benefits) for the life of the Agreement. The Company further agrees to continue to pay 100% of the Life Insurance, AD&D and LTD premiums and 90% of the Health and Dental premiums as described in the Company Group Insurance Plan booklet and the coverage is as follows:

(a) Life Insurance in accordance with the terms of the Plan

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(b) Accidental Death and Dismemberment in accordance with the terms of the Plan (c) Disability Claims in accordance with the terms of the Plan ( d) A Dental Plan in accordance with the terms of the Plan ( e) Health Care Insurance in accordance with the terms of the Plan

14.03 It is clearly understood and agreed that the Company's sole obligation with respect to the benefits mentioned herein above is to pay its portion of the premiums as provided. The Plans mentioned in Article 14.02 above are governed by the policies issued by the insurance company selected by the Company, or by rulings of the Ontario Hospital Insurance Plan, as the case may be.

14.04 New hires will have a waiting period of three (3) months or ninety (90) calendar days before eligibility for benefits begins.

14.05 When a salesperson is laid off or is granted a leave of absence (including medical leaves) prior to the 15th of any month, the Company will pay its portion of the premium costs for the above program for the balance of the month. If the salesperson is laid off or granted a leave of absence (including medical leave) commencing after the I 5th of a month, the Company will pay its portion of the premium costs for the above program for the month following the month in which the lay-off or leave commenced. Thereafter, if a salesperson who is laid off or granted a non­medical leave, wishes to be covered, he shall remit to the Company by the I st of the month an amount equal to the full premium cost.

14.06 All full-time members of the bargaining unit who have completed their probationary period shall become members of the Retail Wholesale Canada Unifor Division Pension Plan. Each full-time salesperson so enrolled shall complete all proper documentation and shall contribute as of the effective date of this Agreement the sum of fifteen dollars ($15.00) per week by payroll deduction toward the cost of his membership in the retirement program. The Company shall contribute one percent (I%) of each salesperson's annual earnings and ensure the proper completion of enrollment documents.

14.07 The Company agrees to extend purchase privileges to employees with seniority covered by the bargaining unit on the same basis it does for non-bargaining unit employees. It is understood that the terms of such privilege may change from time to time.

ARTICLE 15-RATES OF COMMISSION

15.01 The commission rates for all full-time salespersons covered by this Collective Agreement are set forth in Schedule "A" attached hereto and which forms part of this Agreement.

ARTICLE 16 - BEREAVEMENT LEA VE

16.01 (a)

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If the employee requests, an employee will be granted a leave-of-absence of up to four (4) working days after the death of a family member of the employee's immediate family. Ifone (I) or more of the four (4) working days would have been the employee's regularly scheduled work days, the employee will be paid for the days at the employee's basic hourly rate, multiplied by the employee's regular hours.

"Immediate Family" shall include:

• Current spouse, common law partner • Mother, father • Son, daughter, or grandchild

For a brother, sister, mother-in-law, father-in-law, brother-in-law, sister-in-law, stepmother, stepfather, grandparent, grandparent-in-law and step children, an employee will be granted a leave of absence up to three (3) working days in accordance with the above conditions for immediate family.

(b) In the event of the death of a salesperson's brother-in-law, or sister-in-law, the salesperson shall be allowed bereavement leave of one (I) day off with pay at the agreed formula found in Article 13.02, provided the funeral takes place on the salesperson's regular scheduled working day and the salesperson attends the funeral.

I 6.02 A salesperson will not be eligible to receive payment under this Article for any period in which he is receiving payments for holiday pay or vacation pay.

16.03 Salespersons will not be paid for paid holidays under this Article.

16.04 !fan employee suffers the loss ofa family member, as set out in Article 16.01, during a scheduled vacation, bereavement leave shall be substituted and the vacation time will be rescheduled at a mutually agreeable time.

ARTICLE 17 - HOURS OF WORK

17.01 This Article is intended only to provide the basis for the work week and shall not be construed as a guarantee of hours of work per day or per week, nor as a guarantee of working schedules.

17.02 The regular work week shall average, based on four (4) weeks (2 pays), not more than forty-four ( 44) hours per week, Monday through Sunday. Sales personnel will be expected to work at least two (2) Sundays in four ( 4), subject to the Retail Holiday Business Establishments Act.

17.03 The Company reserves the right to schedule salespersons to cover shifts in accordance with its fluctuating business requirements as may be required from time to time. Prior to the Company changing the schedule, it shall provide salesperson, where reasonable, with five ( 5) days' notice.

17.04 (a) The Tepperman scheduling method (sample attached) will be used for the term of this Collective Agreement.

(b) Salespersons within a department may switch work days amongst themselves with the prior authorization of the salesperson's Manager.

(c) Salespersons may "book" days off with the prior approval of management and subject to providing quality customer service at all times.

(d) Notwithstanding the provisions of Article 17.0S(a), salespersons may, if necessary, attend on a non-scheduled day for customer appointments.

(e) A salesperson has the right to choose not to work Sundays. A salesperson who chooses not to work Sundays will have the work week rescheduled accordingly by the

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17.05 (a)

salesperson's Manager with no loss in hours. The salesperson cannot choose to be scheduled for occasional or intermittent Sundays.

Salespersons who are not scheduled to work and are not offered work as a result of a "request for volunteers" will not be permitted to work.

(b) Salespersons cannot "book-off" or "sign-up" colleagues or salespersons other than themselves.

17 .06 All salespersons are expected to be on the sales floor performing assigned work in accordance with their scheduled stait times.

17.07 Salespersons who are scheduled to work in excess of five (5) consecutive hours in a day will be entitled to a one (1) hour unpaid break to normally be taken between the hours of 10:30 a.m. and 2:30 p.m. or 4:30 p.m. and 7:30 p.m. with the approval of the salesperson's Manager. Similarly, salespersons who are scheduled to work in excess of nine (9) consecutive hours in a day will be entitled to a second one (1) hour unpaid lunch period. The Company practice with respect to timing of the taking of the fifteen (15) minute breaks shall continue during the life of this Agreement.

17.08 It is understood and agreed that salespersons will schedule personal appointments on their regularly scheduled days off. In the event that they require time off work they shall provide notice as far in advance as possible to the salesperson's Manager stating the day and amount of time requested. The salesperson's Manager shall endeavour to provide the salesperson with the requested time off where possible. Where it is not possible, the salesperson will have to exchange shifts with a salesperson not scheduled for that day with management approval.

17.09 When a salesperson is unable to report to work as scheduled, he will notify the salesperson's Manager or designate prior to the commencement of the salesperson's scheduled shift and will give the reason why the salesperson is unable to report for work and estimate the duration for which the salesperson expects to be absent.

Following the absence from work in excess of three (3) working days, the salesperson must notify the salesperson's Manager of his intention to return to work, giving at least one (1) day's notice of such intention. The Company may require the salesperson to provide a medical certificate of verification upon request. Such request shall be made prior to the salesperson's return to work.

17.10 All salespersons, except salesperson on vacation or scheduled day off, are expected to attend product/sales meetings and seminars for professional development outside their regularly scheduled hours. If you are scheduled for the afternoon shift you are not required to attend a morning PK, the morning PK is optional, however you are required to attend any scheduled PK's for the afternoon shift which will be 1 hour prior to start of the salespersons selling time.

Such time spent shall be unpaid. It will not represent more than twenty-four (24) hours per year. For any salesperson that is scheduled off or on vacation and cannot attend such training, it is a requirement for that salesperson to take an e-learning version of the training within 5 working days of their return or the availability of thee-learning module.

17.11 It is recognized that major sales events (e.g. Markdown Sales, Anniversary, Warehouse, Renovation, Showroom and Boxing Week Sales, etc.) will require additional staff over and above

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the normal regularly scheduled complement and all salespersons are expected to co-operate and participate fully.

17 .12 During regularly scheduled working hours, ticketing, tagging, re-tagging of product, product set up and display, repositioning of product, re-merchandising and display of product, is part of each salesperson's job and is to be perfonned on an "as required basis". During regularly scheduled working hours these duties will be kept to a minimum.

17 .13 All salespersons will be assigned to departments for the purpose of housekeeping as part of their regular duties.

17.14 All service calls by salespersons shall be performed on a voluntary basis.

17.15 In the event that the Company requires the scheduled sales staff to set up warehouse sales or other special sales events, the Company will assign the required salespersons to do the set up. The remaining salespersons will pool the commission sales written in the department in the time required for the set up and subsequently delivered, and share such commission sales equally with the salespersons on set up.

ARTICLE 18 - GENERAL

18.0 I Bulletin Board

18.02

The Company agrees that notices concerning Union activities may be posted in the lounge in the showroom building on a bulletin board provided by the Company subject to the following conditions:

(a)

(b)

(c)

Notices

(a)

(b)

(c)

Such notices shall first receive approval of the Company prior to posting.

No change shall be made in any such notice either by the Company or by the Union unless it has received the approval of the Company;

No notice shall be posted except on the bulletin board as provided.

Any notice in writing which either party gives to the other shall be by personal service or by registered mail, postage prepaid.

Any notice mailed by registered mail shall be deemed given as of the next day after the date of mailing. The registration date shall establish the date of mailing.

The representative of a party receiving a notice by personal service from the other party shall acknowledge such receipt by signing his name to a copy of such notice and recording the date of receipt and by returning the copy to the party giving the notice.

( d) The Company or Union may change its address for service of notice at any time by giving notice as set forth herein above.

18.03 Interpretation

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(a) Unless otherwise stated, the word "day" or "days" wherever used herein shall be deemed not to include Saturdays, Sundays and paid holidays and showroom shutdowns observed by the Company.

(b) For the purpose of interpreting the Agreement, the masculine gender, wherever used herein, shall mean and include all genders, as well as non-binary genders.

18.04 Medical

(a) Any doctor's note, medical examinations or request for medical documentation requested by the Company should be complied with by the salespersons within a reasonable time and the Company shall pay for all costs required for such doctor's note, medical examinations or medical documentation.

(b) The Company reserves the right to select its own medical examiner or physician.

(c) The Union may have such salesperson re-examined at its expense if, in its opinion, any injustice has been done to the salesperson concerned.

( d) Reimbursement for Company requested medical documents shall be made where the information answers the information requested by the Company.

18.05 Bonding

The Union understands that, as it is the requirement of the Company that each salesperson be covered by the fidelity bond, the Company shall have the right to terminate the employment of any salesperson who is found to be unacceptable to the Company's Bonding Company.

18.06 Change of Address

It shall be the duty of all salespersons to notify the Company promptly of any changes of address, telephone number, or marital status and if any salesperson fails to notify the Company, the Company shall not be responsible for failure of any notice to reach such salesperson.

18.07 Clothing

All salespersons are expected to wear proper business attire while on the job.

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18.08 Definitions

(a) Part-time Salespersons

For the purpose of this Agreement, a part-time salesperson is a salesperson employee who regularly works a schedule of twenty-four (24) hours or less on a weekly basis or a student who is employed during the summer vacation period (i.e. June, July, August and September).

(b) Students

Students upon applying for summer work must indicate in writing their start and finish dates. It is understood and agreed that they are not entitled to vacation time off during their employ.

ARTICLE 19 - JURY DUTY PAY

19.01 A salesperson who is selected for services as a juror, or who is subpoenaed as a witness to appear in court, will be compensated for loss of pay from his regularly scheduled shift due to such jury or witness service. Such compensation will be based on the salesperson's regular scheduled hours at the agreed formula as found in Article 13.02, less the fee received for services as a juror or witness.

However, should the salesperson present himself for selection as a juror and not be selected then the salesperson is required to return to the Company's premises to complete the salesperson's remaining normally scheduled work day provided more than four ( 4) hours remain in the salesperson's scheduled shift.

19.02 In order for a salesperson to qualify for payment under this Article, the salesperson must:

(a) inform the salesperson's supervisor within twenty-four (24) hours of the salesperson's selection for services as a juror or the salesperson's requirements to be a witness;

(b) furnish the Company with a certificate of service from an office in the Court;

(c) have completed the probationary period.

19.03 It is understood that if the salesperson is entitled to receive pay under any other provisions of this Agreement or, as the result of government legislation, there will be no pyramiding or duplicating of benefits.

ARTICLE 20 - HEALTH, SAFETY & ENVIRONMENT

20.01 The Company shall institute and maintain all precautions to guarantee every worker a safe and healthy workplace. The Company shall comply with the Occupational Health and Safety Act, 1990, its regulations and codes of practice and environment legislation and regulations in effect on the effective date of this agreement, as minimum standards.

20.02 Joint Health and Safety Committee

A Joint Health and Safety Committee shall be established which is composed of a minimum of two (2) Union members chosen by the Union all of whom shall be certified. At no time shall the number of Company members be allowed to outnumber the amount of Union members. The

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Union member Co-Chair may be a member from any of the C.A. W. bargaining units in the London location.

Two (2) Co-Chairpersons shall be elected by and from the members of the Committee. One (I) Co-Chair shall be a Union member, the other shall be a Company member.

ARTICLE 21 - DURATION OF AGREEMENT

21.01 This Agreement shall become effective July 28, 2018 and shall remain in full force and effect up to and including July 27, 2021 and shall remain in effect from year to year thereafter unless notice in writing of desire to modify, amend or terminate is given by either party hereto to the other over a signature of an officer of the Company or a Representative of the Union. The notice shall be given not more than ninety (90) days prior to the expiry of the Agreement. The parties shall meet to discuss the proposed changes within such period as the parties agree upon.

DATED this __ day of ______ ~ 2018

FOR THE COMPANY FOR THE UNION

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SCHEDULE "A"

Pay Structure

Your pay consists of three (3) parts -

(a) Base Pay

(b) Commissions

( c) Incentives

Base Pay is $85.00 per week until completion of probation period (normally 120 calendar days). Then your base will increase to $95.00 per week.

The following commission rates as set out below will be the minimum rates for the term of the Collective Agreement. Any increases to the rates will be amended accordingly.

Commissions vary by department as follows:

Furniture 3% Up to $21,000 4% $21,000 to $26,000 5% $26,000 and uo

Annliances/Electronics 3% Bargain Annex 3% Up to $21,000

4% $21,000 to $26,000 5% $26,000 and uo

The above amounts are based on delivered business during the pay period which is two (2) weeks in duratipn. (Each pav period running~ from a Monday to Sunday).

Electronics Salespersons shall be paid commission as outlined above or $15.00 per hour worked in a pay period, whichever is greater.

Any return of merchandise after a ninety (90) day period will not constitute a loss of commission for the said return.

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Signing Bonus

Year Guarantee Perfonnance Performance Bonus Total Bonus - Group Individual London Sales Individual Results Individual Results to Increase YOY to Company Dept. Company Dept. of3.5% in Average Average Charge Sales year 1, Year 2 Protection YI 95% to avg YOY increase YI 95% to avg Y2 I 00% to avg of5% Y2 I 00% to avg

Year I $1200 - - - $1200 Year2 $900 $700 $350 $350 $2300 Year 3 $900 $700 $350 $350 $2300

Year I performance results to be used for the Year 2 payout - to be paid no later than Aug 15, in Year 2 of the CBA Year 2 performance results to be used for the Year 3 payout - -to be paid no later than Aug 15, in Year 3 of the CBA

Performance Bonus is pro-rated for time in the role. Guarantee is not pro-rated.

ELECTRONICS

• Electronics Salespersons shall be paid commission and base as outlined above or $15.00 per hour worked in a pay period whichever is greater. For Electronics Salespersons, they shall receive any and all Spiffs over and above their commissions, base or the $15.00 per hour worked if that condition is activated.

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SCHEDULE "B"

Mailer Monday Scheduling

Furniture department salespersons will alternate monthly, the following shifts on mailer Mondays.

Day shift: Afternoon shift:

9:30 AM - 5:30 PM (1/2 of department) 12:00 PM - 9:00 PM (1/2 of department)

Appliance department salespersons will alternate on a monthly rotation, the following shifts on mailer Mondays.

Day shift: Full shift:

9:30 AM - 5:30 PM (1/3 of department) 9:30 AM - 9:00 PM (2/3 of department)

Electronic department salespersons will alternate, on a monthly rotation, the following shifts on mailer Mondays:

Day shift: Full shift:

9:30 AM- 5:30 PM (1/4 of department) 9:30 AM - 9:00 PM (3/4 of department)

The above for all departments do not include the mailer Monday(s) for the March anniversary event, wher~ all salespersons are required to work., Management reserves the right to use their discretion to determine if the hours worked will be twelve (I 2) hours or based on the salespersons normal rotational schedule.

All salespersons may choose to work the full shift of9:30 AM - 9:00 PM on any of the mailer Mondays, regardless of the shift they are scheduled to work that month. If they decide to work the full shift, they must work until the close of business that day.

The Company reserves the right to alter coverage, as required, due to illness, other unforeseen absenteeism or due to marketing initiatives and/or business conditions dictating and will inform the affected staff by the Thursday prior to a mailer Monday.

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SCHEDULE "C"

PART-TIME EMPLOYEES

C-1 The Company agrees not to displace the existing bargaining unit personnel with part-time salespersons.

C-2 In the event existing bargaining unit personnel leave for any reason, the Company will not utilize part-time salespersons to reduce the complement of full-time sales personnel.

C-3 The Company will schedule part-time salespersons, when required, on a regular basis in a fair and equitable manner depending on their availability.

C-4 Hours in excess of twenty-four (24) per week for part-time positions and hours over and above regularly scheduled hours for full-time salespersons will be offered first to regular full-time salespersons who have signed up on the daily sign-up sheet up to a maximum of forty-eight ( 48) hours per week, averaged over a four (4) week period. Thereafter, required hours will be offered to part-time salespersons on the same basis.

C-5 The Company may utilize part-time salespersons during the major event sales set forth in Article I 7.11.

C-6 A part-time salesperson will be considered on probation until the part-time salesperson has successfully completed the probationary period of four hundred and eighty ( 480) hours of work within a twelve (12) month period. The Company will notify the Stewards of those part-time salespersons who successfully complete their probationary period.

C-7.1 Notwithstanding any other provisions of this Agreement, the termination, lay-off or discharge of any salesperson on probation shall be at the sole discretion of management and no arbitrator or arbitration board shall have the jurisdiction to entertain any grievance filed as a result of such action. The stewards will be informed of any disciplinary action which is imposed on a probationary salesperson. This clause is subject to the Labour Relations Act of Ontario.

C-7.2 (a) The Company shall post and up-date the seniority list every six (6) months, indicating the salesperson's name, classification, and last date of hire, and send a copy to the Local Union office and each steward.

(b) A salesperson shall have five (5) working days to challenge the seniority list with respect to his seniority. Thereafter, the seniority date of each salesperson shall be deemed to be conclusive.

C-7.3 "Seniority" where used in this Agreement, shall mean the relative status of persons employed by the Company in accordance with the length of their continuous service (i.e. unbroken) since the last date of hiring as shown by the Company's records; and, for the purpose of this Agreement, service shall not be deemed broken by a lay-off until seniority is lost as hereinafter provided. Continuous service and seniority shall be considered as synonymous and shall be calculated in terms of days, months and years. Where two (2) or more salespersons are hired on the same day, their relative status will be determined by the date and time of the application for employment.

C.7.4 Seniority rights of a salesperson shall cease and the salesperson's employment shall be automatically terminated for any of the following reasons:

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(a) if the salesperson quits, retires or resigns for any reason;

(b) if the salesperson is absent from work for two (2) consecutive working days without notifying the Company, unless a reason satisfactory to management is given for failure to notify (proof of illness will be considered a satisfactory reason);

(c) if a salesperson, having been laid off, fails to notify the Company of the salesperson's intention to return to work within three (3) calendar days of the date of mailing by registered mail to the salesperson of notice of return to work, and fails to report to work within seven (7) calendar days of such mailing. The post office registration receipt shall be proof of the date of mailing. Notwithstanding the foregoing, a salesperson shall not lose the salesperson's seniority rights or the right to further recall by reason of the fact that the salesperson is unable to report for work because the salesperson is disabled by illness or accident for a period not to exceed twelve (12) months;

(d) if the salesperson is laid off for a continuous period in excess of three (3) months, or up to a period which exceeds one month for each year of seniority at the commencement of the lay-off not to exceed fifteen (15) months; (Notwithstanding the above, all salespersons on the active payroll of the Company as of the date of ratification of this Agreement shall be entitled to not less than twelve (12) months);

(e) if the salesperson fails to return to work upon the expiration of an authorized leave of absence, unless a reason satisfactory to the Company is given;

(f) if the salesperson works for another employer while absent from employment with the Company except while on lay-off, unless the Company grants leave of absence to perform such other work in writing.

C.7.5 In the event of a lay-off, the salesperson with the greatest seniority in the department will be the last to be laid off and conversely the first to be recalled from lay-off, provided the salesperson possesses the necessary qualifications, skill and present ability to perform the work required and efficiently meet the operational requirements of the Company. Notwithstanding the above, when it is necessary to lay off salesperson, probationary salespersons shall be laid off first.

C.7.6 Transfers Out of the Bargaining Unit

A salesperson selected or appointed to a position with the Company outside the bargaining unit shall retain and continue to accumulate seniority for a period not to exceed one (I) year. If the salesperson is later transferred back to a position covered by the bargaining unit, then the service accumulated shall be counted for the purpose of determining seniority, provided the salesperson has not been transferred out of the bargaining unit for a period exceeding one (I) year.

C-8 (a) Part-time salesperson will not be regularly scheduled to work more than twenty-four (24) hours per week.

(b) It is understood and agreed, however, that part-time salespersons may be scheduled to work additional hours to fill in for sickness, long term disability, workers' compensation, maternity leave, leaves of absence, vacation, and shortages of full-time salespersons.

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C-9 Each part-time salesperson shall receive in the following year vacation pay in an amount equal to four percent (4%) of his previous year's commission earnings prior to completing five (5) years of service and six percent (6%) after completing five (5) years of service.

C-10 Part-time salespersons will be entitled to the paid holidays set forth in the Collective Agreement in accordance with the provisions of the Employment Standards Act.

C-11 Salespersons who have completed their probationary period and are working in part-time positions will accumulate seniority and service credits up to a maximum of one (I) year.

C-12 It is agreed that only the following provisions of the Collective Agreement shall apply to part­time sales persons:

Article I Purpose Article 2 Recognition Article 3 No Discrimination Article 4 Management Rights Article 5 Union Security Article 6 Union Representation Article 7 No Strikes or Lockouts Article 8 Grievance Procedure Article 9 Arbitration Article 11 Leave of Absence Article 18 General 18.01 - 18.08

C-13 In the event a vacancy occurs in the full-time sales staff which the Company wishes to fill, it will canvas the part-time salespersons and consider the requirements and efficiency of operations, the qualifications, skill and knowledge, experience and physical fitness and present ability of the individual to perform the required work in a competent manner. Where these factors are relatively equal, the part-time salesperson possessing the greatest seniority will receive the position.

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SCHEDULE "D"

All schedules are rotating. If you are on "A" Schedule this week, you will be on "B" next week, "C" the week after and so forth revolving back to "A".

Appliance Department

Schedule Sun Mon Tues Wed Thurs Fri Sat A 10:30-5 9:30-5:30 12:00-9 9:30-5:30 Off Off 9:30-6 B 10:30-5 12:00-9 9:30-5:30 Off Off 12:00-9 9:30-6 C 10:30-5 9:30-5:30 Off Off 12:00-9 9:30-5:30 9:30-6 D 10:30-5 Off Off 12:00-9 9:30-6 12:00-9 9:30-6 E Off Off 12:00-9 9:30-5:30 12:00-9 9:30-5:30 Off F Off 12:00-9 9:30-5:30 12:00-9 9:30-5:30 Off 9:30-6

Lieu Days: Where regularly scheduled day off falls on a "mailer day", lieu days to be determined.

Electronics Department

Schedule Sun Mon Tues Wed Thurs Fri Sat A 10:30-5 Off 9:30-5:30 12:00-0 12:00-9 9:30-5:30 Off B Off 12:00-9 12:00-9 9:30-5:30 Off 12:00-9 9:30-6 C 10:30-5 9:30-5:30 Off Off 12:00-9 12:00-9 9:30-6 D 10:30-5 12:00-9 Off 12:00-9 9:30-5:30 Off 9:30-6

Lieu Days: Where regularly scheduled day off falls on a "mailer day", lieu days to be determined.

Furniture Department {effective Jan. 2010)

Schedule Sun Mon Tues Wed Thurs A 10:30-5 12:00-9 12:00-9 9:30-5:30 Off B Off 9:30-5:30 12:00-9 13:00-9 9:30-5:30 C 10:30-5 12:00-9 9:30-5:30 Off Off D 10:30-5 9:30-5:30 Off Off 12:00-9 E 10:30-5 Off Off 12:00-9 9:30-5:30 F Off 12:00-9 9:30-5:30 9:30-5:30 12:00-9

Lieu days if scheduled to work on a Direct Mail Promotion Day

11 B11 Mailer- "A 11 Friday 11 D" Mailer- 11 C11 Tuesday 11 E" Mailer - 11 D11 Wednesday

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npn Mail - 11 E" Friday

Fri Sat 9:30-5:30 Off Off 9:30-6 12:00-9 9:30-6 12:00-9 9:30-6 12:00-9 9:30-6 9:30-5:30 Off

LETTER OF UNDERSTANDING #1- SPIFFS

The Tepperman practice with respect to spiffs, which are used as sales direction by management, will continue during the life of this Agreement.

It is clearly understood there will be no reduction of spiffs on any non-advertised item if the sale is financed. The spiff is dependent on the sale of the applicable aftermarket product in accordance with the Tepperman spiffprogramme.

LETTER OF UNDERSTANDING #2 -SOCIAL JUSTICE FUND

The Company agrees to contribute five hundred dollars ($500.00) to this Fund once over the life of this Agreement.

LETTER OF UNDERSTANDING #3 -PERFORMANCE MANAGEMENT PROCESS

All salespersons are expected to continually and consistently meet key performance indicators (KPl's) to maintain store profitability and to allow each salesperson to maximize their earning potential. Salespersons are expected to meet the following KP! objectives:

(a) Individual salesperson volume numbers must be at least 80% of the departmental average based on days worked within each month.

(b) Extended warranty and furniture protection performance calculated as a percentage of sales of the applicable product categories are, at a minimum, in years I, 80% of the company average, year 2, 90% of the company average and in year 3 equal to the overall Company average on a monthly basis. This will be evaluated based on Tepperman's and Bargain Annex performance criteria.

( c) Charge sale percentage rates, at a minimum, in year I - 80% of the company average, year 2 -90% of the company average, and in year 3 must be equal to the overall Company average on a monthly basis. This will be evaluated based on Tepperman's and Bargain Annex performance criteria.

If one (I) of these KP!' s are not met for a duration of two (2) consecutive months, the salesperson will be placed on a non-disciplinary performance monitoring plan and provided with sales coaching to improve performance over a ninety-day (90) period.

If two (2) or more of these KPl's are not met for a duration of (2) consecutive months, the salesperson will be placed on a formal performance management program and provided with coaching to correct their performance issues. The process will include:

(i) A formal meeting with the employee, the employee's manager, and a union steward.

(ii) Salesperson will immediately be placed on a sixty-day (60) day action plan to allow them to improve their KPI's, along with formal documentation outlining the concerns, next steps and support that will be given by the salesperson's manager with accompanying expectations and consequences.

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(iii) If performance has not improved after the initial sixty (60) day period, the employee will be provided with additional sales coaching and an additional sixty ( 60) day extension of their action plan. The employee will receive further formal documentation to be placed in their employee file.

If after 120 days, there is no improvement in the salesperson's performance, the Company has the right to further disciplinary action, up to and including dismissal subject to the grievance procedure.

LETTER OF UNDERSTANDING #4 - INTERNET SALES

The Company and the Union agree that where there are sales through our transactional website of products that are sold in our London store, and a salesperson has not been identified, the Company agrees to pay 1 % in commissions to the London sales team provided they are an active employee during the delivery period. Those sales must be within the London delivery area defined by postal codes.

Delivered sales obtained through the website where a salesperson has been identified through the website (selection menu) will be compensable per Schedule "A". For the purposes of this Letter of Understanding, it is understood the Company will use a selection menu that the customer will have the opportunity to identify if a specific salesperson has provided assistance.

The Company and the Union agree that all sales people will assist customers with their internet orders should they come into the store or call into the store looking for assistance.

LETTER OF UNDERSTANDING #5 - GENERAL MEETING

The Company and the Union have discussed discussion items with the Union proposing the Company having a general meeting with the sales teams to review expectations with all and the union to support and partner in the process.

LETTER OF UNDERSTANDING #5-LABOUR/MANAGEMENT MEETINGS

The Company and the Union have agreed that they will have quarterly Labour/Management meetings.

LETTER OF UNDERSTANDING #6-EDUCATION FUND

The Company agrees to contribute five hundred ($500.00) to the Education Fund no later than four ( 4) weeks after the date ofratification of the Collective Agreement. The Company will forward the contribution to Unifor Local 414 Education Fund 274 Alliance Road, Unit 1 Milton ON, L9T 2V2

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