SUBJECT INDEX APRIL Article ~

Transcription

1 SUBJECT INDEX APRIL Article ~ Bereavement IX 15 Bulletin Boards xv 26 Check-off of Union Dues XVIII 28 Cost-of-Living Allowance XII 20 Discharge and Suspensions VI 7 Discrimination XIX 31 Duration of Agreement XXIV 33 Functions of Management VII B General Conditions XXll 32 - Injury Allowance 32 Grievance Procedure IV 3 - Arbitration, Hondays x 16 - Designated Holidays 17 - Pay for Holiday 18 Hours of Work IX 13 Human Rights XXll 32 Insurance Plans xx 31 Jury Duty XXll 32 Leave of Absence XVI 26 - For Union business 26 - Pregnancy Leaves 27 Occupational Classifications 34 Overtime IX 14 Pension Plans XXI 31 Progression - New Hire Wages XI 19 - Schedule of Wages 35 Recognition 2

2 Representation Rest Periods Right to Amend and Supplement Safety and Sanitation Scope of Agreement Seniority Shift Premiums Strikes & Lod<outs Vacations Wage Rates - Schedule APPENDICES: - Wage Schedule - Part Time Employee Agreement - Temporary Student Employee Agreement Article Ill XIII XX.Ill XVII VIII IX v XIV XI Appendix A Appendix B Appendix C Page LETTERS OF UNDERSTANDING - Recognition of Letters - Technological Changes - Paid Educational Leave (P.E.L) - Contracting Out Work - Pension Benefit Levels - Medical Exam re: Operation of Equipment - Changes to Health & Safety or Employment Standards - Transfer/Closing of Facility - Retirement Incentive - Banking of Overtime Hours - Shift Premium Letter#

3 - 1 - PARTS DISTRIBUTION CENTRE MEMORANDUM OF AGREEMENT THIS AGREEMENT, made and entered into by and between NAVISTAR CANADA, INC. and UNI FOR, referred to in this Agreement as "National Union", AND ITS LOCAL 504 referred to in this Agreement as "Local Union", said National Union and said Local Union also being referred to jointly in this Agreement as "Union". WITNESSETH: The purpose of this Agreement is to assure employees certain desired working conditions, and to provide through collective bargaining for harmonious relationships between the Company and its employees; to secure an amicable and fair disposition of grievances; to prevent interruptions of work and stoppage of employees' payrolls; and to permit efficient operation of the Company's business and protection of the interest of the public. The Union recognizes that the ability of the Company to provide wages and working conditions satisfactory to its employees is, to a large extent, dependent on the co-operation of the employees in maintaining efficient and, so far as possible, stabilized and continuous operations in order that the market for the Company's products and service may be maintained and developed by prices fair and attractive to customers. In furtherance, therefore, of the above stated purpose, it is hereby agreed: ARTICLE I SCOPE OF AGREEMENT 1.01 It is agreed and understood between the Union and the Company that this Agreement is limited to and embraces only such matters as are specifically set forth in the Agreement, such as rates of pay, wages, hours of employment and other conditions of employment, and that all other matters shall be subject to further negotiations.

4 -2- ARTICLE II RECOGNITION 2.01 The Company recognizes the Union as the sole representative for collective bargaining of the employees of the units of the Company hereinafter defined The unit recognized as appropriate for purposes of collective bargaining and represented by the Union is as follows: All employees of the Parts Distribution Centre, located at Hamilton, Ontario, save and except management, office staff and progressive students The Company recognizes and will not interfere with the right of its employees to become members of the Union, and will not discriminate against, interfere with, restrain or coerce employees because of membership in the Union. The Union agrees not to intimidate or coerce employees into membership and also not to solicit membership or collect dues on Company time. ARTICLE Ill REPRESENTATION 3.01 ln an negotiations with the Company and in the processing of grievances as set forth in Article IV, the Union may appoint and the Company will recognize a Union Committee of three (3) members and one {1) alternate who shall function only in the absence of regular members. One member shall act as Chairperson No one shall be eligible to serve on such committee unless he/she is an employee of the Company or until his/her name has been placed on the seniority list When there is an increase or decrease of working force, the number of committeemen may be increased or decreased by mutual consent The Company will inform the Union in writing of the identity of those having authority over employees in each bargaining unit, including existing job titles, and will keep such list up to date at all times.

5 The Union agrees to notify the Company in writing of the names of the members of the Union Negotiating Committee, the effective date of their appointment and the area which each member represents Members of the Union Negotiating Committee shall be afforded such time off from their regular work without loss of pay as may be required to make necessary legitimate investigations of employee grievances, providing they give advance notice to their designated department head of the approximate amount of time to be spent, and provided the employee's absence will not seriously interfere with the normal operation of the department. The Company will not be required to pay Union representatives for time allegedly spent in investigating employee grievances in any case in which the privilege is abused by a Union representative who spends an excessive amount of time or who uses the time permitted for any reason other than making necessary legitimate investigations of employee grievances Time spent by Union representatives in negotiating labour contracts with Management, attending meetings with Management or othenrvise carrying on the duties of Union representatives as agreed to by the parties, will be counted as time worked in computing all service and attendance records, excepting that those given leave of absence to perform duties as National representatives shall not receive attendance credits for vacation eligibility during such absence. ARTICLE IV SETTLEMENT OF DIFFERENCES 4.01 Should any difference arise between the Company and the Union or employees as to the meaning and application of the provisions contained in this Agreement, or should there be any complaint or grievance by an employee or the Union or the Company with respect thereto, an earnest effort shall be made to settle such matters promptly by negotiations under the following procedure: (a) Between the employee or employees affected and the Warehouse Supervisor or between employee or employees affected, the Union Shop Committeeperson and the Warehouse Supervisor. The Warehouse Supervisor's decision will be given within one (1) working day. However contested discharges will be immediately processed to the next level of the grievance procedure.

6 -4- (b) Between the Union Negotiating Committeeperson concerned and the Parts Distribution Centre Manager, or the Manager's representative. The Management's decision will be given within five (5) working days. (c) Between the Union Negotiating Committee, the National Representative Of the Union and representative designated by the Company. A meeting for the purpose of discussing grievances processed to this step will be arranged within fifteen {15) days of the submission of such grievance, and the Company's decision will be given in writing within five (5) working days of the meeting. Arr; extension to the above noted time limits will be granted by mutual consent between the Company and the Union Where a difference arises between the parties relating to the interpretation, application or administration of this Agreement, including any question as to whether a matter is subject to arbitration, or where an allegation is made that this Agreement has been violated, either of the parties may, after exhausting any grievance procedure established by this Agreement, notify the other party, in writing, of its desire to submit the difference or allegation to arbitration and the notice shall contain the name of the first party's suggested appointee to act as arbitrator. The recipient of such notice shall, within five (5) working days of its delivery notify the first party of acceptance or rejection of the proposed arl:itrator. In the event of a disagreement, the parties shall make an earnest effort to agree upon an acceptable arbitrator. Failing such agreemen~ the parties shall then request the Minister of Labour having proper jurisdiction to appoint an arbitrator The arbitrator shall hear and determine the difference or allegation and shall issue a decision and the decision shall be final and binding upon the parties and upon any employee affected by it. It is expected that the decisions on grievances which have been referred to arbitration will be rendered within thirty (30) days after the date of the arbitration hearing Notice of a desire to appeal a grievance to arbitration must be given by either party to the other party within thirty (30) calendar days from receipt of written answer given at the third step of the grievance procedure. Such notice must state the moving party's opinions of the contractual issue involved, indicating in what manner it is claimed that the opposite party has violated this Agreement, or failed to perform some obligation assumed thereunder. Such notice must also specify the relief sought by the moving party.

7 -5- However, this provision will not prevent the parties from referring to any other pertinent section of the agreement in support of their claim Union representatives who are needed by the Union in the presentation of their case and employees who are to appear as witnesses for the Union will be excused from work without pay to attend a hearing upon written request by the Union At such hearing before the arbitrator the parties may present oral and documentary evidence in support of their several contentions and each party shall, at all times have the right to cross--examination. The arbitrator may, upon request of either party or the arbitrator's own motion, adjourn the hearing for a sufficient period to enable either party to furnish additional evidence, oral or documentary, which, in the opinion of the arbitrator, is relevant to the issues involved If either party shall claim before the arbitrator that a particular grievance fails to meet the tests of arbitration, the arbitrator shall proceed to decide such issue before proceeding to hear the case upon the merits. The arbitrator shall have the authority to determine whether he/she will hear the case on its merits at the same hearing in which the jurisdictional question is presented. In any case where the arbitrator determines that such grievance fails to meet said tests of arbitration, the arbitrator shall refer the case back to the parties without a decision or recommendation on the merits The function of the Arbitrator shall be of a judicial rather than a legislative nature. The Arbitrator shall not have the power to add to, to ignore or to modify any of the terms and conditions of this Agreement. The decision of the Arbitrator shall not go beyond what is necessary for the interpretation and application of this Agreement or the obl"lgatlon of the parties set forth in this Agreement. No decision shall decide issues not directly involved in the case. Nothing in the Section shall limit the right of the Arbitrator to exercise full discretion in determining the reasonableness of disciplinary measures invoked by the Company, and in a proper case, the Arbitrator shall have the right to make appropriate modification of a disciplinary measure which the Arbitrator determines is in excess of the amount deemed reasonably necessary under Article VII Each party hereto shall bear its own costs of and incidental to any such arbitration proceedings. The fees and/or proper costs and charges of the Arbitrator shall be borne equally by the two parties hereto The Union agrees that when a grievance, compla"1nt or dispute is referred to the second step of the grievance procedure, it will be reduced to writing for presentation to the Company, and the Company agrees that its decision of any such grievance, complaint or dispute at the second and third steps shall be given to the Union in writing five (5) working days following

8 - 6 - discussion of such grievance, complaint or dispute. Failure of the Company to answer a grievance within a reasonable time in the various steps of the grievance procedure shall entitle the Union to carry the grievance to the next step Meetings between Management and the Union Negotiating Committee shall be held as mutually agreed upon when necessary for the purpose of discussing grievances or other matters of mutual interest. The Union agrees to provide the Management with an agenda of such meetings at least 24 hours prior to the meeting, except in special cases where this may not be possible. Members of the Union Negotiating Committee shall be afforded time off work without loss of pay to handle grievances in the first three steps. Upon request by either the Union Negotiating Committee or Navistar Canada, Inc. management, the President of the local Union and/or the National Representative will be allowed to attend such meetings The Company shall be under no obligation to consider or process any grievance unless same has been presented in writing within thirty (30) days from the time the circumstances on which the grievance is based were known to those presenting the grievance. ARTICLEV STRIKES AND LOCKOUTS 5.01 The Company and the Union agree that the grievance procedures provided herein are adequate to provide a fair and final determination of all grievances arising under the terms of this Agreement. It is the desire of the Union and the Company to avoid strikes and work stoppages The Union agrees to adhere to the provisions contained herein for the settlement of grievances and for the duration of this Agreement will nol: authorize, assist or support any strike or stoppage of work. Participation in any strike, slow-down, sit-down or stoppage of work brought about either by action Of the Union in violation Of this agreement or by individuals or groups without Union authority shall be just cause for discipline by the Company The Company, on its part, agrees to adhere to the provisions contained herein for the settlement of grievances and will not engage in any lockouts of employees.

9 -7- ARTICLE VI SUSPENSION AND DISCHARGE CASES 6.01 In the event an employee on the seniority list shall be suspended or discharged from employment and believes he/she has been unjustly dealt with, such suspension or discharge shall constitute a case to be handled in accordance with the method of adjustment of grievances herein provided. Should it be decided under the rules of this Agreement that an injustice has been done with regard to the employee's suspension or discharge, the Company agrees to reinstate the employee and to reimburse the employee for the wages the employee would have earned for the time lost less what the employee has earned in outside employment since the employee's suspension or discharge. The foregoing sentence shall not preclude the parties, by mutual agreement from arriving at some other settlement. The Company must be notified of a claim of wrongful suspension or discharge within three (3) working days after same occurs, and shall diligently work to dispose of the claim within three (3) working days. An extension to the time limits provided for in this section may be granted to the requesting party provided that such request is made in writing within the initial time limits, and such request shall not exceed an additional three (3) working days unless mutually agreed upon by the parties In the event the Company is notified as above regarding claim of wrongful discharge, the employee will be permitted to continue his/her protection under the Group Insurance Plans until the issue is resolved but not to exceed twelve (12) months. If the employee is reinstated and the Company is obliged to reimburse the employee for lost earnings, the employee will also be reimbursed to the extent of contributions the employee made to any such plans up to the amount which would normally have been paid by the Company on the employee's behalf Upon being notified of his/her suspension or discharge, it shall be the duty of the employee to leave his/her work area and go directly to the office of the Manager Distribution Services at hislher operation. Personal belongings will be delivered to employee before the employee leaves the premises. If the notification occurs outside of the regular office hours, the employee shall report to the Manager Distribution Services during the next working day unless prevented from doing so for reasons beyond the employee's control. The Union Committeeperson shall be notified promptly and given the opportunity to review such suspension or discharge case with the employee and others before the employment records are closed. The wages of the employee shall cease at the time of-the employee's notification of suspension or discharge excepting in cases where it is determined later that the Company's action was not warranted.

10 -8- The company shall endeavor to completely process the separation of an employee so that it will not be necessary for the employee to return to the workplace. ARTICLE VII FUNCTIONS OF MANAGEMENT 7.01 The Union recognizes that the customary rights of management which are not restricted by other provisions of this agreement or by law rest exclusively with management These customary rights include the right to discipline employees for just cause, proof of which rests with Management. Any disciplinary action is subject to the grievance procedure. Once the appropriateness of the disciplinary action has been determined, a written notice of the formal discipline will be given to the employee and the Union chairperson It is agreed that the Company has the right to direct generally the work of the employees subject to the terms and conditions of this Agreement, including the right to hire employees, to promote and transfer employees for proper cause, to discharge, suspend and demote employees for just cause, to assign them to shifts with due regard to seniority, to determine the amount of work needed, and to lay them off because of lack of work in accordance with the provisions herein. However, none of the foregoing shall be done for the purpose of unfair discrimination The Company, in directing the working force, may exercise its right to invoke disciplinary measures for just cause, subject to the terms and conditions of this Agreement. ln imposing discipline on a current charge, the Company will not take into account any prior infractions which occurred more than eighteen (18) months previously To enable the Company to keep its products abreast of scientific and technical advances, it is agreed that the Company may from time to time, and without reference to the rule of seniority set out in this contract, hire, transfer, teach and assign duties to a small number of technical men or others to be mutually agreed upon between the Company and the Union The Company will inform the Union of any additions to or deletions from the existing rules or regulations or policies, prior to such changes being implemented. Any complaint as to the reasonableness of such additions or deletions shall be subject to the grievance procedure of this Agreement.

11 - 9 - ARTICLE VIII SENIORITY 8.01 Employees shall be regarded as probationary employees for the first three (3) months of their employment. Grievances may not be presented in connection with the lay off or discharge of probationary employees and there shall be no responsibility for the re-employment of employees if they are laid off or discharged during their probationary period. However, probationary employee shall be entitled to all other rights and privileges accruing to employees under this Agreement unless otherwise specifically excluded After three (3) months of actual working service, within any period of twelve (12) consecutive months, an employee shall be entitled to be placed on the seniority list, and such seniority shall date from a date three (3) months prior to completion of such probationary service Where an employee from the part time list fulfills the hourly probationary period as per the Part Time Employee Agreement, then the probationary period as per 8.01 and 8.02 will be waived When a lay-off becomes necessary, probationary employees will be laid off first; thereafter the Company will lay-off employees in accordance with their seniority and ability. Where a dispute arises as to the ability of the longer service employee to perform the work required to be done and who is subject to lay off, the employee shall be provided a period of familiarization of up to five (5) working days to prove such ability. In cases of increase and decrease of force, seniority shall prevail, provided that employees to be retained or recalled by reason of seniority are qualified to perform the work available Employment and seniority shall both terminate when: (a) An employee voluntarily leaves the Company's employment. This includes cases where an employee is absent from work in excess of five (5) consecutive working days without reporting to Management and supplying a justifiable reason for such absence. (b) An employee is discharged for cause, and the decision is not reversed under the provisions of Article IV herein. (c) Due to lay-off because of no work a period of more than twenty-four (24) months has elapsed since an employee with ten or less years of service has last worked for the Company, or due to lay-off because of no work a period of more than forty-eight (48) months has elapsed

12 -10- since an employee with more than ten (10) years of service has last worked for the Company. (d) An employee who has been laid off because of no work fails to report for work when recalled by registered mail, within a period of five (5) working days of the receipt of the return of a registered recall letter. Copy of such notice is to be given at the same time to the Chairperson of the Union Negotiating Committee. This five (5) day period may be waived providing a reasonable explanation is given to the Management for not reporting to work. (e) An employee fails to report for work at termination of a leave of absence, furlough or vacation, unless reason for such failure to report to work is furnished which is reasonable to the Management. {f) An employee with ten or less years of service has been out of employment with the Company for more than twenty-four (24) consecutive months for any reason other than lay-off because of no work, or an employee with more than ten years of service has been out of employment for more than forty-eight {48) consecutive months for any reason other than lay-off because of no work. However, it is agreed 1hat the Company and the Union, by mub.jal agreement, may make exceptions to the seniority provisions of this contract in favour of an employee who has suffered a major disability. This will be applied in accordance and subject to the Ontario Human Rights Code and the Employment Standards Act Seniority of an employee absent from work for any reason shall accumulate during said absence, except as provided otherwise in paragraph 8.05 above In the application of (a), (d) and (e) of paragraph 8.05, inability to report for work up to a period of ninety (90) days because of detention arising out of a charge or conviction involving the operation of a motor vehicle will not be regarded as breaking seniority. ln cases where detention exceeds ninety (90) days, consideration will be given by local Management based on the circumstances relating to the individual case. In the event, the courts grant a work release program for motor vehicle violations to the employee, the Company will honor such program Former employees re-entering service after their continuity of service has been broken by any of the foregoing reasons shall be considered new employees For the sole purpose of insuring that the Union will have continued representation in its negotiations with the Company, the Company will accord a preferred seniority status to the members of the Union Negotiating

13 Committee as provided under paragraph 3.01 to the extent that in the event of a reduction of working force, they will be retained in employment as long as there is available work in their respective departments which they are qualified and willing to perform in a satisfactory manner. In no case shall the Company be under obligation to assign work because of preferred seniority status to a person who is not able to perform the work available. The right to designate the persons who shall have such preferred seniority status shall be vested in the Union, provided that the list at all times shall include only employees in office. Whenever the Union desires to substitute another person for one then having preferred seniority, it shall notify the Company, in writing, and thereafter the person whose preferred seniority has ceased shall resume his/her regular seniority. 8.1 O Employees who are laid off will be given a minimum of three (3) working days' prior notice or pay in lieu of. An employee not at work on the day notice would otherwise be given will be considered to have received notice effective the date the Company sends notice by registered letter to the employee's last address as shown on the Company's records. Copy of such notice will be provided at the same time to the Union Chairperson Union representatives shall be given the opportunity to review all contemplated cases of lay-off before such lay-offs are made effective In the event that any employee who has been or may be assigned to a position not covered by this Agreement is returned to a position within the bargaining unit, such employee shall be credited with the seniority he/she held at the time of leaving the bargaining unit, but such seniority shall not be exercised for the purpose of displacing another employee at the time of such re-entry. However, such seniority may be exercised in any subsequent reduction of force. An employee who following October 1, 1980 is assigned to a position not covered by this Agreement must return under the above conditions within twelve (12) months of such assignment to retain the seniority held at the time of leaving the unit. An employee who is returned to the bargaining unit after this period of twelve (12) months and whose return is due to exceptional circumstances such as medical reasons, may be credited with seniority under the provisions of this section if it is mutually agreed between the Company and the Union The Company will post up-to-date seniority lists every three (3) months in each location and supply Union Negotiating Committee members with a copy of such lists. Changes in the lists regarding seniority only, in the interval, will be reported immediately to the Chairperson of the Union

14 -12- Negotiating Committee. The seniority lists shall show each employee's classification every three (3) months When a vacancy occurs and before a new employee is hired, notice of such vacancy shall be posted in the warehouse for a period of not less than two (2) working days. Such notice shall include the job title and state the numl:er of persons required. An employee who considers he/she has the necessary qualifications the vacancy shall have the right to make application for it. An application from a probationary employee will only be considered at the discretion of the Company. Preference will be given to the applicant having the greatest seniority. If such applicant is not considered to have the necessary qualifications to justify his/her selection, the applicant having the next highest seniority shall be considered for the vacancy and so on until the vacancy is filled on a qualification and seniority basis. The Company shall not be obliged to make a selection from the applicants when none of them is considered to be qualified. Where a dispute arises as to the ability of an applicant to perform the required work the applicant shall be allowed up to five (5) working days under normal instruction in which to prove such capability. Tl1e Company shall advise the successful applicant within twentyfour (24) hours after the selection has been made Employees may decline a transfer or promotion without a prejudice to their rights to future transfers or promotions An employee who is certified by the physician of the employee's choice as well as the Medical Officer{s) of the Company (when deemed necessary by the Company) as requiring work of a different nature from the employee's regular work for an indefinite period will be assigned duties suitable by the Company providing the employee is capable of satisfactorily performing such work and such work is available. In the event of a conflict between the employee's physician and the Medical Officer{s) of the Company, a third party doctor recommended by the Ontario Medical Association will be called upon to resolve that conflict. The Company and the Union will review and reach agreement before exercising this provision. An employee placed on a job because of a disability will have that disability reviewed at least every six (6) months and updated medical opinions may be required. The employee, upon becoming fit shall return to their pre-injury classification provided they have sufficient seniority.

15 For the sole purpose of insuring that there will be continued representation on the Joint Health and Safety Committee, the Company will accord a preferred seniority status to members of such Committee to the extent that, in the event of a reduction of the working force, they will be retained in employment as Jong as there is available work in their respective departments which they are qualified and willing to perform in a satisfactory manner. In no case shall the Company be under obligation to assign work because of preferred seniority status to a person \!\/ho is not able to perform the work available. The right to designate the persons who shall actively serve on such Committee shall be vested in the Union. Whenever it becomes necessary for the Union to substitute another person for a person on the Committee who has preferred seniority, it shall notify the Company, in writing, and thereafter the person whose preferred seniority has ceased shall resume his/her regular seniority. This article 8.17 shall not supersede Article ARTICLE IX HOURS OF WORK OVERTIME 9.01 (a) The normal work week shall consist of forty (40) hours, Monday to Friday inclusive. The normal work day shall be eight (8) hours, Monday to Friday. The regular Monday-Friday work schedule far the day shift shall begin between 6:00 a.m. and 10:59 a.m. with a half-hour lunch period. The regular schedule for the second shift shall begin between 11 :OO a.m. and 2:00 p.m. with a half-hour lunch period. It is recognized that the hours of work for some day shift, second shift or third shift employees may not be the same as for other employees assigned to the same day shift, second or third shift as the case may be. Employees will be provided seven (7) work days notice if their core shift hours are to be changed but stay within the core shift hours as set out in this section. Notwithstanding the above, there shall be no more than three (3) different starting times per shift excluding the maintenance personnel. However, more than three starting times per shift may be implemented if mutually agreed by the parties.

16 -14- {b) An employee must notify the Company prior to the start of hislher shift on the day of such absence, if they are absent from work without prior authorization. (c) In making shift assignments to open jobs, the Company shall assign by seniority employees to the shift of their preference except for the purpose of training inexperienced employees including probationary employees. No employee shall exercise shift preference more often than once in six (6) months. Such assignments will become effective only at the start of the pay period Time and one-half will be paid to an employees for all hours worked in excess of eight (8) hours in any one day or in excess of forty {40) straight time hours in any one week. For the purpose of computing time worked in excess of eight {8) hours in any one day, a day shall consist of twenty-four {24) consecutive hours from the time an employee begins the shift in which the work is performed. An employee who, for all intents, leaves work but was informed before leaving the plant that he/she is required to return for overtime work after completing an eight-hour shift, will be guaranteed a minimum of two (2) hours work or two (2) hours pay If an employee is absent for part of a work day by a requirement under any government law and is requested to work overtime on that day, or if an employee is absent by Company direction for part of a shift because of shortage of stock, breakdown of equipment, or other similar reason, and is requested to return and work beyond the regular quitting time of that shift, the employee shall be paid at the overtime rate for all hours worked beyond such regular quitting time Time and one-half will be paid for all work performed on Saturday and double time for all work performed on Sunday Double time will be paid for work performed on the day of observance of the designated holidays specified in Article X. Such pay will be in addition to designated holiday pay for employees so entitled under the provisions of Section For this purpose a holiday will commence with the first regular shift and extend for a period of twenty-four (24) hours An employee who reports for work on his/her regular shift without having been previously notified not to report, shall be given a minimum of four (4) hours work; or in lieu thereof, the equivalent of four {4) hours pay at the employee's_regular hourly rate. Refusal to perform any type of work to which the employee may be assigned during such four (4) hours shall constitute forfeiture of this guarantee.

17 The Company agrees that in cases of overtime, the overtime will be equitably divided among the employees who normally perform such work; however, employees must be qualified to do the work required. Overtime of three (3) hours or less total, in a given year, shall not affect the distribution of overtime. Records showing the distribution of overtime shall be maintained and may be examined by the Union upon request Employees who refuse overtime hours offered will be credited on such record with the hours offered. Employees newly assigned to a classification will be credited with an amount of overtime hours equal to the greatest amount then credited to any employee in the classification Overtime work shall be performed on a voluntary basis. When qualified employees are not available on such basis, the Company shall have the right to assign employees with the least seniority who are qualified to perform the work in line with the provisions for equitable distribution of overtime work set forth herein. 9.1 O Managerial employees and others excluded from the bargaining unit shail not, so long as they continue to have such status, perform work of employees covered by this Agreement, except in the case of warehouse supervisors and then only for the purpose of instruction, inspection and diagnosis. However, it is agreed that excluded employees may continue to perform their normal function for the purpose of making periodic checks of storage bins and for the taking of the annual inventory of stocks A shift premium of ninety cents ($.90) per hour shall be paid for all straight time hours worked by an employee outside the core business hours. This understood to be 8:00 am to 4:30 pm, but is subject to change as the needs of the business dictate. For the purpose of determining core hours it is where the majority of employees are working during the day shift as outlined in section A shift premium of one dollar ($1.00) per hour shall be paid for all hours worked by an employee on any shift starting on or after 7:30 p.m. and prior to 3:30 a.m Bereavement - When death occurs in the employee's immediate family, i.e., spouse, common-law spouse (spouse and common-law spouse shall include same sex partners in a conjugal or similar relationship when proper proof of relationship has been submitted and is suitable to the Company.), an employee who has acquired three (3) months of service will on the employee's request be granted time off with pay at-the employee's current rate plus COLA, if applicable, to the extent necessary, but not to exceed the number of days shown with the following table.

18 Bereavement Entitlement Five Da11<::. Three Da n:: One Dav Parent. Step parent. Aunt I Uncle. Current spouse Parent of current spouse Child. ~r common law spouse). Ste~child. ter,brother I Stersister. Bro her I Sister. Bro her I Sister o current spouse (or common law ~ouse.) randchild. Grandparent. Grandparent of current spouse (or common law spouse.). Current Sister-in-law or Brother-in-law. The employee will be entitled to a day off without pay when death occurs for a Niece or Nephew. Time off with pay may be extended to five (5) days when the employee is required to attend a funeral outside of Canada. Proof of death and travel suitable to the Company must be provided to the Company. For the purpose of this section, an employee will be entitled to pay when the employee's absence on the days involved is solely for the provisions set forth and for which he/she would otherwise receive straight time pay for work An employee who has left the plant without being given notice of required overtime and is called or recalled to perform work outside of his/her regular schedule, shall be paid at the applicable rate but with a minimum of four (4) hours at the applicable overtime rate When an employee is temporarily assigned to a job in a higher classification, the employee shall immediately be paid the higher rate if the assignment continues for one (1) shift or more. ARTICLEX HOLIDAYS

19 The designated holidays are: 2014 Thanksgiving Day Christmas Eve Day Christmas Day Boxing Day New Year's Eve Day 2015 New Year's Day Family Day Good Friday Victoria Day Canada Day Civic Holiday Labour Day Thanksgiving Day Christmas Eve Day Christmas Day Boxing Day New Year's Eve Day 2016 New Year's Day Family Day Good Friday Victoria Day Canada Day Civic Holiday Labour Day Thanksgiving Day Christmas Eve Day Christmas Day Boxing Day New Year's Eve Day October 13, 2014 December 24, 2014 December 25, 2014 December 26, 2014 December 31, 2014 January 1, 2015 February 16, 2015 April 3, 2015 May 18, 2015 July 1, 2015 August 3, 2015 September 7, 2015 October 12, 2015 December24, 2015 December25, 2015 December 28, 2015 December31, 2015 January 1, 2016 February 15, 2016 March 25, 2016 May 23, 2016 July 1, 2016 August 1, 2016 September 5, 2016 October 10, 2016 December 23, 2016 December26, 2016 December27, 2016 December 30, New Year's Day Family Day Good Friday Victoria Day Canada Day Civic Holiday Labour Day Thanksgiving Day January 2, 2017 February 20, 2017 April 14, 2017 May 22, 2017 June 30, 2017 August 7, 2017 September 4, 2017 October 9, 2017

20 -18 - Christmas Eve Day Christmas Day Boxing Day New Year's Eve Day 2018 New Year's Day Family Day Good Friday December 22, 2017 December 25, 2017 December 26, 2017 December 29, 2017 January 1, 2018 February 19, 2018 March 30, Employees having three (3) months or more of seniority service and who perform no work on one of the holidays listed in Paragraph will be entitled to either eight (8) hours' pay computed on the basis as outlined elsewhere in the Article, excluding overtime and shift bonus, providing they report for work in the regular manner and work a full shift on the last working day before and the first working day after such holiday, unless such requirement is waived under the terms and conditions hereinafter set forth Holidays falling on a Saturday or Sunday will be observed on the preceding Friday or on the following Monday in accordance with the Holidays designated in Section Absence for part of the shift on qualifying days may be allowed under the following conditions: (a) Employees may be excused for part of the shift on qualifying days because of transportation problems or because of emergency conditions which may be considered beyond the reasonable control of the employee. Such concession must have the approval of the management, and wherever possible, be requested in advance of the holiday. (b) Tardiness on qualifying days if not in excess of one hour will be excused if reason for such tardiness is reasonable to the Management. (c) Employees may leave plant before the end of the shift on a qualifying day because of illness if a medical certificate, which has to be requested from the employee prior to the employee's leaving the Parts Distribution Centre, is submitted upon the employee's return to work Absence for the entire qualifying shift will be allowed under the following conditions: (a) Personal disability, confirmed by suitable medical evidence, providing the employee has worked some time within the thirty (30) calendar day period immediately preceding the holiday, or works on the second

21 -19- qualifying day if returning from a disability which prevented him from working on the first qualifying day. (b) Jury duty or witness in court. (c) Scheduled vacation. (d) Death of immediate relative of either employee or spouse (as defined in section 9.12). (e) Emergency conditions considered by the management to be beyond the reasonable control of the employee. (f) Layoff on account of no work, providing the employee has worked any part of the work week immediately preceding the holiday. (g) Leave for Union business which does not exceed one (1) week in duration Employees will be limited to a period of three (3) weeks in which to submit medical evidence as to their inability to work on their qualifying days because of sickness or injury off the plant, unless there is reasonable evidence that such was not possible Pay for the above holidays not worked will be made on the following basis: holiday. Workers will be paid at their regular rate in effect at the time of the If an employee is absent under Item (a) of Section and is eligible for Group Sickness and Accident benefits or Workers' Safety and Insurance Board benefrts for the designated holiday, the employee will be paid any difference between such benefits and pay for such designated day. ARTICLE XI WAGE RAT5S JOB CLASSIFICATIONS See job dassifications attached hereto and forming part of this Agreement See Appendix "8" for Part Time employees See Appendix "C" for Temporary Student employees.

22 See wage schedule {Appendix "A") as attached hereto and forming part of this agreement {a)an employee hired prior to October 1, 2003 shall receive base wages as per Appendix "A", Part A. (b)an employee hired on or after October 1, 2003 shall receive base wages as per Appendix "A" Part 8. {c) An employee will receive credit for one day for each day at work seven days for each pay period during which the employee works except that credit will not be given for any days the employee is on layoff. Credit will not be given for any period during which for any reason, the employee does not work except that an employee disabled from work by compensable injury or legal occupational disease shall accrue credit toward pay periods worked and in the case of the pay period in which the full week of the Christmas Holidays fall, provided the employee would otherwise have been scheduled to work Each increase shall be effective at the beginning of the first pay period following the completion of the required number of days employment. {d) A laid-off seniority employee shall receive a base rate, upon reemployment 'IJhich has the same relative position to the maximum base rate of the job classification as had been attained by the employee prior to layoff. Such employee shall continue to be covered by the rate progression provisions in effect during the employee's previous employment. Upon such re-employment, the credited rate progression period of the employee's prior period of employment shall be applied toward the employee's rate progression to the maximum rate of the job classification. ARTICLE XII COST-OF-LIVING-ALLOWANCE The Cost-of-Living Allowance (COLA) provided herein shall be paid to each employee hired prior to October 1, 2003 for each hour worked. The amount of the Cost-of-Living Allowance in effect at any given time shall be included in computing vacation pay, holiday pay, call-in pay, bereavement pay and jury duty pay No amount of COLA will be added to the base rates.

23 12.03 (a) Effective with the adjustment for the three-month period beginning with the first full pay period specified in (b), the Cost-of-Living will be determined and adjusted up or down in accordance with changes in the Consumer Price Index published by Statistics Canada 1992 = 100. (b) Adjustments during the period of this Agreement shall be frozen beginning with the first pay period on or after September 1, (a) The adjustment will be up or down 1 for each full.073 change in the average index as indicated in (b). (b) In determining the three-month average of the indexes for a sp~ific period, the computed average shall be rounded to the nearest 0.1 index point. (c) In no event will a decline in the three-month average of the index provide the basis for a reduction below the base wage schedule In the event that Statistics Canada does not issue the appropriate Consumer Price Index on or before the beginn 1ng of one of the pay periods referred to herein, any adjustment in the Cost-of-Living Allowance required by such appropriate Index shall be effective at the beginning of the first pay period after the index has been officially published No adjustment, retroactive or otherwise, shall be made due to any revisions in the Indices published by Statistics Canada which may later be used in the calculation of the Consumer Price Index for any month on the basis of which the Cost-of-Living Allowance shall have been determined The continuance of the Cost-of-Living Allowance shall be contingent upon the availability of the official monthly Statistics Canada Consumer Price Index, in its present form and calculated on the same basis as the index published in September 2006 unless otherwise agreed upon by the parties. ARTICLE XIII REST PERIODS

24 The Company agrees to grant employees a ten (10) minute rest period during each half shift without loss of pay. ARTICLE XIV VACATIONS (a) An employee who was hired prior to October 1, 1990 and who has established the required service indicated in Column 1 and who has at least nine hundred (900) compensated hours to the employee's credit during the previous calendar year will receive a vacation and vacation pay for the following year as shown in Columns 2 and 3 of the Vacation Schedule A shown below, based on such required service. A vacation for an employee who does not have nine hundred (900) compensated hours of work to his/her credit during the twelve (12) months in the calendar year will be as shown in Column 2, but vacation pay will be calculated on the applicable percentage of earnings as shown in Column 4, excluding overtime premium and shift bonus, except where mandatory under Provincial Government regulations. Employees will be eligible for increased vacation entitlement on January 1 of each year of the contract according to the vacation schedule in the applicable year. Employees who were hired prior to October 1, 1990 will be entitled to their regular vacation entitlement in the year they retire. (b) An employee who was hired subsequent to October 1, 1990 and prior to October 1, 2003, and who has established the required service indicated in Column 1 and who has at least nine (900) hundred compensated hours of work to the employee's credit during the twelve {12) months prior to the calendar year will receive a vacation and vacation pay far ttie fallowing year as shown in Columns 2 and 3 of the Vacation Schedule A shown below, based on such required service. (c) An employee who was hired subsequent to October 1, 2003 and who has established the required service indicated in Column 1 and who has at least nine (900) hundred compensated hours Of work to the employee's credit during the twelve (12) months prior to the calendar year will receive a vacation and vacation pay as shown in Columns 2 and 3 of the Vacation Schedule 8 shown below, based on such required service.

25 - 23- Employees will be eligible for increased vacation entitlement on January 1 of each year of the contract according to the vacation schedule. For employees who were hired subsequent to October 1, 1990 no additional vacation entitlement will be granted in the year in which they retire. A vacation for an employee who does not have nine hundred (900) compensated hours of work to his/her credit during the twelve (12) months in the calendar year will be as shown in Column 2, but vacation pay will be calculated on the applicable percentage of earnings as shown in Column 4, excluding overtime premium and shift bonus, except where mandatory under Provincial Government regulations Employees having ten (10) or more years of seniority service by the end of the previous calendar year but who were unable to work a total of nine hundred (900) compensated hours because of absence due to extended illness or injury, will be paid full vacation pay based on their entitlement under section No employee will be penalized in connection with his/her vacation attendance record for any days lost as the result of an injury arising out of or in the course of the employee's employment with the Company, or for days lost due to temporary layoffs caused by strikes or other interruptions of a temporary nature where the employee is not formally separated from the payroll. VACATIONS SCHEDULE A (Employees hired prior to October 1, 2003) Column4 Column 1 Column2 Columns %of vacation Full Vacation Pay Earnings Less than 1 year 1 year but less than 3 3 years but!ess than 1 O 10 years but less than years but less than years or more Nil 2 weeks 3 weeks 4 weeks 5 weeks 6 weeks NII BO times hourly rate 120 times hourly rate 160 times hourly rate 200 times hourly rate 240 times hourly rate # 8.0# 10.0# 12.0# * Includes overtime premium, shift bonus and cost-of-living allowance as required by Provincial Government regulations. # Excludes overtime premium and shift bonus but includes cost-of-living allowance paid at time vacation is taken.

26 - 24- VACATIONS SCHEDULE B (Employees hired on or after October 1, 2003) Column4 Column 1 Column2 Columns %of Service Vacation Full Vacation Pay Earnings Less than 1 year Nil Nil 4.0 "* 1 year but less than 3 2 weeks 80 times hourly rate yearsbutlessthan 10 3weeko 120 times hourly rate 6.0## 10 years but less than 20 4 weeks 160 times hourly rate 8.0## 20 years or more 5 weeks 200 times hourly rate 10.0## *"Includes overtime premium and shift bonus as required by Provincial Government regulations. ##Excludes overtime premium and shift bonus paid at time vacation is taken This vacation plan shall not change vacation service credits compiled on the basis of former plans. Except where altered under any former vacation plan, service will be continuous from the date of employment and shall be the same as service for seniority service Whenever one of the designated holidays (except Canada Day and Civic Holiday) referred to in Article falls within an employee's regular vacation period, the employee shall receive an extra day's vacation, to be taken immediately prior to or following the employee's regular vacation or the employee may elect to receive holiday pay for such day as though the employee were not on vacation. Whenever Canada Day or Civic Holiday fall within an employee's regular vacation period and /she elects to receive an extra day's vacation such day shall be taken in agreement with the employee's warehouse supervisor Vacation pay for employees whose service is terminated by lay-off or other reasons prior to the end of the calendar year or who have not worked nine hundred (900) compensated hours or more during the previously calendar year will be made on the basis of the respective percentage of earnings from the beginning of the calendar year depending on their service as detailed in Section Employees whose service is terminated in the current calendar year and prior to having "taken their vacation, and who have fulfilled the nine hundred (900) compensated hours work requirement, will be paid their current rate for the vacation to which entitled under Section 14.01

27 An employee who terminates service in the calendar year, and prior to the employee's vacation period will be paid vacation pay for both the expired vacation and for that portion which the employee was employed or as otherwise required. A vacation payment made to an employee under this section shall not be considered as extending the employee's period of service beyond the last day the employee performs work for the Company Vacation pay for employees who become deceased prior to vacation being taken will be paid to the estate of the deceased employee and will be computed on the same basis as for terminated employees (a) Vacations may be taken at any time during the year. However, vacation schedules will necessarily conform to the requirements of the business. Due consideration will be given to seniority in assigning vacation schedules where practical. An employee may convert ten (10) days vacation to Paid Absence Allowance (P.A.A.). This may be taken in minimum one (1) hour increments. The Company must be notified and approval given for the absence at least 24 hours prior to the intended time off. Vacations will not be assigned in periods of less than one week, except when an employee has less than a week of vacation time remaining after converting vacation time to P.A.A. Neither vacation nor P.A.A. will be granted after the end of the calendar year in which the employee qualifies for a vacation. The Company recognizes the need for employees to schedule vacations with their families. To this end up to four (4) employees per week may schedule vacation in two (2) week increments during the months of July and August based on seniority in rotation. Up to three (3) employees per week may schedule vacation in two (2) week increments during the remaining months based on seniority in rotation. (b) Full time employees will become eligible for 40 hours of PAA on January1st of each year of the contract. This may be taken in minimum one (1) hour increments. The Company must be notified and approval given based on business requirements for the absence at least 24 hours prior to the intended time off. If an employee chooses to convert ten (10) days vacation to PAA, only five (5) days can be used in a full week increment. This may also be taken in minimum one (1) hour increments. (c) If one qualifies for an Emergency Leave, they can choose to take PAA time without such advance notice which will count towards the provision of the ESA.

28 - 26- (d) New full-time employees will become eligible for PAA on January 1 of each year of the contract. The employee will receive a pro-rated amount of PM hours equivalent to the number of work days between their anniversary date and December 31st multiplied by 40 hours divided by 365 days (rounded up to the next whole hour). ARTICLE X:V BULLETIN BOARDS For the use of the Union the Company will erect and maintain a bulletin board at each department. The location of same shall be mutually determined. Such boards may be used for the purpose of disseminating information concerning meetings, elections, social events and other affairs of general interest. Under no circumstances may they be used for advertising, for political matter, for distributing pamphlets or circulars or for propaganda of any sort. No matter shall be posted until it has been submitted to and approved by Local Management. Such approval shall not be unreasonably withheld. ARTICLE X:VI LEAVES OF ABSENCE Whenever reasonably practical, the Company agrees to grant leave of absence, upon request of an employee, for personal reasons. Leaves of absence will not be granted to accept other employment of any kind. Request for leave of absence must be made through the Manager, or the Manager's representative and, if granted for a period of more than five (5) working days, must be requested and approved in writing For the purpose of facilitating the affairs of the Local or National Union, the Company shall, upon written request of the Union, grant leave of absence without pay to one Union member in each location. Such member during such leave of absence shall accumulate seniority service as though employed by the Company. Absence under this provision shall not exceed one (1) year, except that such leaves shall, upon request, be renewed from time to time within the period of this contract.

29 Leave of Absence, not to exceed sixty (60) working days in each location in each year without pay and without loss of seniority, shall also be granted, upon written request by the Union, to not more than two (2) Union members at the same time for the purpose of attending Union conventions or other Union meetings as delegates. Leave of absence shall also be granted to Committeepersons to attend membership meetings and Union Negotiating Committee meetings Maternity and Parental adoption leaves will be granted in accordance with the provisions of the Employment Standards Act of Ontario (a) Upon written request of an employee who is or seeks to be a candidate for election to any government office the Company will grant the employee a leave or leaves of absence not in excess of a total of thirty (30) days in the period prior to the election date for government office for the purpose of campaigning on the employee's own behalf. (b) For the purposes of enabling employees to participate in the affairs of government, the Company shall grant, upon written notice from the employee, leaves of absence to employees who are elected to municipal, provincial and federal governmental positions for the first term or who are appointed to full-time governmental office where such appointment requires legislative approval. Such leaves of absence may be renewed at the option of the Company, upon written request, for successive terms within the period of this contract. ARTICLE XVII SAFETY AND SANITATION The Company, the Union and employees shall conform to the requirements of the Occupational Health and Safety Act of Ontario A Safety Committee will be set up as required by the Occupational Health and Safety Act of Ontario Required protective equipment (such as safety glasses, including prescription lenses, work gloves, rain coats as necessary) shall be supplied free of charge by the Company through the Company's designated suppliers The Company agrees one time each year to reimburse any employee who is covered by the Current Collective Agreement, and who

30 - 28- purchases safety shoes, the sum of up to $ effeciive October 20, For any individual, the one-year period commences from the date that the individual purchases his/her first pair Of shoes and the empl?yee must present the receipt for such purchase to the Warehouse Supervisor. Safety shoes must meet C.S.A. approval, have leather uppers and be ankle high. ARTICLE XVIII CHECK-OFF OF UNION DUES All present employees in the bargaining unit who are now members of the Union by reason of having paid initiation fees, and of having signed an authorization to deduct Union dues, or who subsequently during the life of this Agreement become members, by direci payment to the Union of initiation fees or by signing an authorization to deduct initiation fees (18.05) and by signing an authorization to deduct the equivalent of Union dues {18.06), shall for the life of this Agreement be required as a condition of continuing employment to maintain their membership in the Union to the extent of contributing the equivalent of current monthly dues All new employees of the Company who are hired or all employees excluded from the bargaining unit who wlll be transferred to the bargaining unit during the term of this Agreement will be required as a condition of employment, and within thirty {30) days after the commencement of employment, or after the signing of this Agreement or after transfer to the bargaining unit, to assign to the Union through payroll deductions the equivalent of the monthly Union dues, and for such purpose to sign an authorization form to deduct the equivalent of Union dues as provided in paragraph Summer students will be required to pay Union dues under the provisions of this section lt is hereby agreed that for the duration of this Agreement, upon authorization in writing by an employee covered by this Agreement, and in the manner as set out in paragraphs and 18.06, the Company will deduct initiation fees as set out in paragraph below, from the second payment of wages in the month after authorization has been made, and will also deduct the equivalent of Union dues as set out in paragraph from the second payment of wages in each month. All such deductions to be transmitted to the Financial Secretary of the Local Union on or before the 25th day of each month. The Financial Secretary of the Local Union shall notify the Company of the amount of the payments to be deducted in accordance with this Article.

31 Orders authorizing the deduction of Union initiation fees and equivalent of Union dues shall be made in duplicate and one copy shall be forwarded to the Financial Secretary of the Union. Article (Authorization To Deduct Initiation Fees) and part of Article specifying procedures to deduct initiation fees will not apply to Part Time employees as described in Appendix "B", nor will it apply to Summer Students as described in Appendix "C". Part Time employees and Summer Students may make request, in writing, to the Financial Secretary of the Local Union for the form authorizing the deduction of initiation fees as set out in Article The Company will, at the time of making each such payment to the Union, name the employees from who such payment has been deducted and the specific amount deducted from each of them.

32 AUTHORIZATION TO DEDUCT INITIATION FEES To Navistar Canada, Inc. (Date) Effective as of the above date, and in accordance with the provisions of the Collective Agreement in effeet between the Company and Uni!or, and its Local Unions, I hereby al.l!horize the Company to deduct from my wages and to remit to the Union the sum established by the ConstdlJ!ion of the National Union and the by-laws of the Local Union to cover my initiation fees for membership in the Local Union. (Signature of Employee) Witness: (Address) (Company or Union Ftepre~ent<0tive) AUTHORIZATION TO DEDUCT THE EQUIVALENT OF UNION DUES To Navistar Canada, Inc. C"') Effecl:lve as of the above date, and in accordance with the provisions of the Collective Agreement in effect between the Company and Uni!or, and its Local Union11, I hereby authorize the Company to deduct from my wages and to remit to said Local Union an amount equivalent to the monthly r:tues as establisher:! by the Cons~tutlon of the National Union and the by-laws of the Local Union. (Signature of Employee) Wrtness: (Address) (Company or Union Representative)

33 ARTICLE XIX NO DISCRIMINATION Jt is agreed that neither the Company nor the Union shall discriminate against any person because of race, ancestry, place of origin, colour, ethnic origin, citizenship, creed, sex, sexual orientation, age, marital status, family status or disability as provided in the Ontario Human Rights Code. Whenever a reference to male gender appears in this agreement it is understood that such language is not restrictive and is intended to include females. ARTICLE XX INSURANCE PLANS The Insurance Plans applicable to employees covered by this Agreement are attached in Appendix "D" The Management agrees to meet with a representative committee of the Union to discuss any phase of the group insurance plans whenever there appears to be reasonable justification for such a meeting. ARTICLE XX! PENSION PLANS The Management agrees to meet with a representative committee of the Local Union to discuss any phase of the pension plan, whenever there appears to be reasonable justification of such meetings The non-contributory retirement plan in effect for employees covered by this agreement and hired prior to October 1, 2003 is attached in Appendix "E~ The Retirement Savings Plan in effect for employees covered by this agreement and hired on or after October 1, 2003 is attached in Appendix "F"

34 ARTICLE XXll GENERAL CONDITIONS Injury Allowance When an employee is absent for the purpose of receiving treatment because of an accident sustained the same day, the employee shall be entitled to remuneration for the balance of the regular working hours of the shift. When it is necessary for an employee to obtain medical attention for an industrial injury after the day of the injury during the employee's regular working hours the employee will be paid for the time required if authorization is received in advance from local Management Jury Service The Company will make up to an employee who is called for jury duty the difference, iii' any, between the employee's jury pay and the employee's regular wages from the Company for the time so spent, providing that the employee must report for work as soon as possible after the lunch period, if the employee is dismissed for the day by the Court by 11 :00 a.m. The same provision shall apply to any employee being served a subpoena to appear as a Crown Witness in Court Management shall provide each employee with a copy of this Agreement and the local Union with twenty-five (25) copies Human Rights The Company and Union recognize that where the terms of the Collective Agreement are in conflict with employment, human rights and health and safety legislation or create an adverse impact on employees, that both parties will cooperate in a mutual responsibility to meet their duty of accommodation. This may mean adapting the workplace to job duties and the requirements of the Agreement as it relates to seniority, shift premium, and other practices set out in this Agreement. ARTICLE XXlll RIGHT TO AMEND AND SUPPLEMENT The parties reserve the right to amend and supplement this Agreement by mutual agreement at any time during the duration thereof.

35 -33- ARTICLE XXIV DURATION OF AGREEMENT This Agreement, including the Insurance and Pension Plans referred to in Article 20 and Article 21 (unless otherwise indicated in these plans), shall be effective from April 30, 2014 continue in full force and effect until p.m. on April 27, 2018 and thereafter from year to year unless within three (3) months prior to expiration date of this Agreement or any anniversary thereof, either party shall give written notice to the other party of its desire lo make changes and of the specific changes desired or to terminate the same. IN WITNESS WHEREOF, the parties hereto have hereunto set their hands and seals the day and year first above written. For the Company: hl=ff"""4zw.....,,, )'///)_ For the Union: Q-,~;;z;;: ~y~

36 -34- OCCUPATIONAL CLASSIFICATIONS MA TE RIAL HANDLER - Labour Grade 1 Drive, operate and care for, self-propelled stock chasers, lift truck, stacl<er, industrial sweepers. As required, perform all warehouse duties necessary to allocate storage in a manner to utilize a minimum amount of space and for expeditious identification Of various kinds and sizes of parts and material. Responsible for picking, and packing, packaging or bundling of parts orders for shipment in conformance with established procedures, to prevent damage to parts, including the processing and preparation of the necessary paper work to assure correct and complete orders. Identify parts by use of the necessary procedures for identifying same, and determine, if required, the acceptability of parts in conformance with salable conditions. Perform all functions necessary for receiving of parts including checking and unloading of all items received, preparing and maintaining necessary records, and reporting of shortages, overages and damages. Check current surplus and returned parts shipments and verify against necessary documents. Place li.hese and all other receipt material into proper storage bins in a neat and orderly manner. Use hand tools, mechanical equipment and mobile equipment as provided to perform these functions. Connect and disconnect battery-powered equipment to charger.

37 WAGE SCHEDULE APPENDIX "A" Part A Employees hired prior to October 1, 2003 Labour Grade 1 Upon May 2015 Ratification $24.80 $1250 LS'" $1250 LS** May2016 $1250 LS* May2017 $1250 LS * *Paid after the first full payroll period following ratification *" Lump sums paid after first full payroll period in the week Jn the month of the respective year. Part B Employees Hired on or after October Labour Grade 1 Upon May 2015 May2016 May 2017 Ratification $22.57 $23.00 $23.25'" $23.50* $23.75'" & $500 LS'"* &$500 LS & $500 LSu *The Base Rate payments will be paid effective the first full payroll period on or after May 1st of each vear for the duration of the contract period. **Lump sums paid after first full payroll period in the week in the month of the respective year. Employees Hired on or after October 20, Months $ Months $ Months $ Months $ Months $ Months $23.75 *The progression steps will be applicable effective the first full payroll period on or after the service anniversary date. based on the above progression schedule.

38 -36- PART TIME EMPLOYEE AGREEMENT APPENDIX "B" (1) DEFINITION A part time employee is one who may be called in from time to time: (a) to replace regular full time employees who are on short term temporary absence, such as but not limited to vacation, holiday shutdowns, sickness and accident, or leave of absence, and (b) to be used during peak work flow periods or special workload situations such as, product recall, Maximum Impact orders, rewarehousing, and by mutual consent with the union, any other special projects when temporary additional manpower is required. Part time employees would not otherwise be scheduled on a regular basis but would be used intermittently as described. (2). ECONOMICS (a) Rate of Pay- The rate of pay will be as per schedule below: Upon Ratifi~ation $15.GO& $150 LS* May201S $1S.Z5 MayZ016 MayZ017 $150 LS 0 $ "The Base Rate payments will be paid effective the first full payroll period on or after May 1st of each year for the duration of the contract period. - Lump sums paid after first full payroll period in the week in the month of the respective year. {b) (C) Overtime - Part time employees are eligible for overtime pay only after eight (8) hours of actual work performed in the day. Part time employees are eligible for overtime at time and one half for work on Saturday or Sunday only after forty {40) hours work performed in the week, othemise they wm be paid their regular pay for work on Saturday or Sunday. Part time employees are excluded from Cost of Living Allowance (C.O.L.A.), shift premium, premium pay for work on designated holidays, and health and insurance benefits (unless mandated by government regulations).

39 GENERAL Union dues will be deducted from these employees after they are compensated for, or receive, forty (40) hours wages in a month. No part time employee will be utilized in instances when there is a full time employee on layoff except where the full time employee on layoff has been offered and refused available work. Part time employees called in to replace short term temporary absences as in (1 )(a) above may be called in on an hour-for-hour replacement basis. The use of part time employees for temporary workload situations as in (1 )(b) above will be limited to 1,800 hours in a rolling twelve (12) month period. That is, that the total of all hours worked by part time employees on peak periods or special workload situations will be no more than 1,800 hours regardless of the number of part time employees utilized. The company will maintain a report that records these hours and will review this report with the union. If the Company exceeds the 1,800 hour limit, unless by mutual agreement with the union, the company will pay time and one half for the excess hours worked to the employee with the lowest overtime hours. Prior to calling in part time employees for assignment to special projects, the Company will discuss the need with the union including an estimate of the length of the project. Regular full time employees will have the option of performing the special project work first, subsequently being replaced by a part time employee. No more that two part time employees will be allowed to work at any one time on special work load situations and no more than two part time employees can be brought in to work on peak work flow at any one time. In any case, no more than four part time employees can be used at one time for peak work flow and special work load situations. Part time employees must be assigned to two days of "on the job" training with a full time employee prior to working on their own. This training time will not be recorded as part time hours worked. A separate seniority list (part time) will be maintained for part time employees based on actual hours worked. Part time employees must complete a probationary period of 720 hours. Once the probationary period is completed, part time work and/or regular Full Time status, if available, will be offered based on seniority. During the probation period the Company reserves the right to decide which part time employees to call in for available part time work.

40 -38- TEMPORARY STUDENT EMPLOYEE AGREEMENT APPENDIX "C" PURPOSE Temporary student employees are intended to be hired on a temporary basis for a term or task during peak vacation or winter holiday break to facilitate the scheduling of vacations for a consecutive period of not more than four (4) months. The peak vacation period will generally begin on May 1st and end on Labour Day. The winter holiday break will generally begin on Dec. 15th and end on Dec. 31st_ It is recognized that the Collective Agreement does not apply to temporary student employees except and save for the following. ECONOMICS The rate of pay will be $14.25 per hour. Temporary student employees will not be eligible for Cost of Living Allowance (C.O.L.A.). Overtime to be paid at time and one-half for any hours worked in excess of 8 hours in a day or 40 hours in a week. HEALTH INSURANCE ANO PENSION BENEFITS No health insurance or pension benefits will accrue to these employees other than statutory benefits required by Federal or Provincial legislation. GENERAL No temporary student employee will be utilized in instances where there is a full time employee on layoff except when the full time employee on layoff has been offered and refused available work, or when a part time employee has completed their probation period is available, in those instances the limits outlined in the Part Time Employee Agreement, Appendix "B", under the General section do not apply. Union dues will be deducted from these employees after they are compensated for, or receive, forty (40) hours wages in a month.

41 Letter# 1 August 8, 1997 Renewed 2000 Renewed 2003 Renewed 2006 Renewed 2009 Renewed 2014 Mr. M. McKinlay Chairperson CA. W. Local 504 Navistar Unit Burlington PDC SUBJECT: LETTERS This letter confirms the agreement that all letters of intent that are listed in the Collective Agreement are considered to be part of the Agreement. Yours truly Albert Versteeg Manager, Parts Distribution Canada

42 Letter# 2 September 29, 1983 Renewed 1994 Renewed 1997 Renewed 2000 Renewed 2003 Renewed 2006 Renewed 2009 Renewed 2014 Mr. J.M. Paulin, Chairman Local 504, U.A.W., Burlington P.D.C. TECHNOLOGICAL CHANGES As agreed in recent negotiations of the new Collective Agreement, this wil\ constitute a Letter of Understanding regarding the above subject. In the event the work performed by employees in the Local 504 bargaining unit is altered as a result of technological changes so that additional short range training may be required, the Company is willing to train such employees where practicable to enable them to perform such work. Employees will be selected by seniority and qualification for this training. Prior to the introduction of a technological change affecting bargaining unit employees at the Burlington P.D.C., the Company will discuss with the Union the changes that are going to be implemented. J. J. Schumacher, Employee Relations Manager

43 Letter# 3 August 14, 2009 Revised 2014 Mr. Stabler Chairperson C.A.W., Local 504 Burlington P.D.C. Navistar Canada, Inc Subject: P.E.L Dear Mr. Stabler: Subsequent to the Burlington Parts Distribution Centre negotiations with Local 504 Unifor, the parties have discussed the labour education program established by the Union for the purpose of upgrading employees' skills in all aspects of trade union functions and the matter of Company financial support of this program. In recognition of the contribution that the Union's program can make toward improving the Union-Management relationship and toward a more effective administration of the Collective Agreement, the Company is agreeable as hereinafter set forth to making a grant to the Unifor Leadership Training Program (P.E.L. Trust) Subject to the Company receiving an Advance Income Tax Ruling from the Department of National Revenue in form and substance satisfactory to the Company relating to the deductibility of amounts paid by the Company to the P.E.L. Trust and provided further that such amounts shall continue to be deductible, the Company will contribute the sum of $5400 to the P.E.L Trust in equal quarterly payments of $450 on the following dates: 1/05/15 1/01/16 1/01/17 4/01/15 4/01/16 4/01/17 7/01/15 7/01/16 7/01/17 10/ /01/16 10/01/17 Cont'd...

44 -42- Page 2 Subject: P.E.L. Cont'd... The Union will co-operate fully in providing the Company with all documents regarding The Unifor Leadership Training Program (P.E.L Trust) as it may require in order to secure the aforementioned Income Tax Ruling. It is understood and agreed that the portion of the P.E.L. Trust Fund represented by the Company's contributions will be used solely and exclusively to provide paid educational leaves and related benefits for employees of the Company who attend sessions of the labour education program as described by the Union during these negotiations. Annually, the Union wlll provide the Company with an audited statement prepared by an independent public accounting firm certifying that all expenditures made from the P.E.L. Trust Fund were made in accordance with the intent and purposes of the Trust Deed dated July 3, 1979, establishing the P.E.L. Trust. A leave of absence for participation in the Union's program will be gran1ed by the Company in accordance with Article 16 of the Collective Agreement to seniority employees designated by the Canadian Director of the National Union to the Manager, Burlington P.D.C. for the Company on four (4) weeks' advance written notice specifying the employee's name and dates of requested absence, provided no such absence will result in any loss of efficiency, or disruption of operations at the Burlington Parts Distribution Centre. No more than two (2) employees granted such leaves will be excused from work, without pay, for up to twenty (20) days of class time, plus travel time where necessary; said leaves of absence to be intermittent over a twelve (12) month period from the first day of leave during the term of the 2006 Burlington Parts Distribution Centre Agreement. Yours truly, Ellen Cochren Manager, Burlington Parts Distribution Centre

45 Letter#4 June 21, 1991 Renewed 1994 Renewed 1997 Renewed 2000 Renewed 2003 Renewed 2006 Renewed 2009 Renewed 2014 Mr. Ken Scearce, Chairman Local 504, C.A.W. Navistar Unit Subject: CONTRACTING OUT WORK As agreed in the 1991 negotiations, this will constitute a letter of understanding covering the above subject during the term of this collective agreement. It is the policy of the Company to have its work done by its own employees provided it has the manpower, skills, equipment and facilities to do so and can do the work competitively in quality, cost and performance and within the projected time limits. At times the Company does not deem advisable doing the work itself and it must, as in the past, reserve the right to decide whether it will do any particular work or subcontract it. This letter is not to be regarded as impairing this right in any way. The Company assures the Union it has no plans to change its policy and that it expects to continue its general operating policy of placing primary reliance on its awn employees to perform its work to the extent consistent with sound business practice. The Company will discuss with the Union Committee, Local 504, Parts Distribution Centre, it's intentions to outside contract work prior to the contractor's reporting on Company premises. The Company is genuinely interested in maintaining employment opportunities for its employees consistent with its needs. Albert Versteeg

46 -44- September 29, 2006 Renewed 2014 Letter# 5 Mr. M. McKin\ay Chairperson Local 504, CAW Burtington P.D.C. International Truck and Engine Unit Subject PENSION BENEFIT LEVELS As agreed during the 2006 negotiations, the pension benefits levels wm be increased as follows for employees retiring with benefits commencing October 1, 2006 and after: LIFE INCOME MONTHLY SUPPLEMENTAL Benefit Class Code ALLOWANCE A B Oct 1/2006 through Sep 30/2007 Oct 1/2007 through Sep $49.05 $49.30 $2,675 $50.05 $50.30 $2,725 Oct through $51.05 $51.30 $2,750 Sep 30/2009 The pension language will be amended accordingly and the Union w\11 be prcv;cted with i:opies of an amended pension agreement to review and sign as soon as it is available. Yours truly Albert Versteeg Manager, Parts Distribution Canada

47 - 45- October27, 1994 Renewed 1997 Renewed 2000 Renewed 2003 Renewed 2006 Renewed 2009 Renewed 2014 Letter# 6 Mr. M. McKinlay Chairman Local 504, C.A. W. Navistar Unit Burlington P.D.C. SUBJIECT: MEDICAL EXAMINATION WHEN REQUIRED TO OPERATE MATERIAL HANDLING EQUIPMENT During the 1994 negotiations the Union and Company discussed the possibility that legislation may come into effect that requires medical examinations in order to obtain a permit to operate moving material handling equipment. For the term of this collective agreement, should such regulation come into effect, the Company agrees to cover the cost of a taking a mandatory medical exam by employees in accordance with the applicable legislation. Notwithstanding the above, the Company retains the right to decide on and implement the most cost effective method of taking these medical examinations. Yours truly Albert Versteeg Manager, Parts Distribution Canada

48 Letter#? August 8, 1997 Renewed 2000 Renewed 2003 Renewed 2006 Renewed 2009 Renewed 2014 Mr. M. McKin\ay Chairperson C.A.W. Local 504 Navistar Unit Burlington P.D.C. SUBJECT: CHANGES TO HEAL TH & SAFETY ACT OR EMPLOYMENT STANDARDS ACT During the 1997 negotiations the Union expressed concern regarding possible future changes to either the Occupational Health and Safety Act and/or the Employment Standards Act. Should changes occur during the duration of this agreement to either or both of these Acts, the Company agrees to discuss with the Union, within 30 day of any changes, the impact of these changes to ensure the integrity of existing Burlington practices and programs, which includes the historic right to refuse or stop unsafe work:. The parties further agreed that efforts to use safety to further unrelated personal interests or to make frivolous work: refusals will not be tolerated. Yours truly Albert Versteeg Manager, Parts Distribution Canada

49 -47 - September 21, 2000 Revised: September 25, 2003 Renewed 2006 Renewed 2009 Renewed 2014 Letter# 8 Mr. M. McKinlay Chairperson C.A.W. Local504 International Truck and Engine Unit Burlington PDC SUBJECT: TRANSFER/CLOSING OF FACILITY This will confirm that if, during the term of this agreement, it is comtemplated that the Burlington PDC will be closed, the Company will give written notice to the President of the National Union as far in advance as possible, but in no event will less than ninety (90) day's notice be given. The notice will include the reason the Company is considering closing the PDC, a projection of the date of such closing, and anticipated alternative sourcing, if any. Thereafter, the Union will be afforded the opportunity to discuss the matter and mangement will give appriopriate weight to the Union's comments in reaching a final decision. In the event only that the Burlington PDC at 901 Guelph Line, Burlington, Ontario totally closes operations at that location and moves its operations from there to a new location within a 150 km radius, the Company will recognize the National Automobile, Aerospace, Transportation and General Workers Union of Canada (CAW-Canada) and it's Local 504 as the sole representative for the collective bargaining of the Parts Distribution warehouse. The current collective agreement will transfer, in whole, to the new facility and will remain in effect until either party gives notice to amend in accordance with Article Jn the event of a total closure of the Burlington PDC at 901 Guelph Line, Burflngton, that results in permanent job Joss, each permanent full time employee effected by permanent layoff will be entitled to receive a lump sum severance payment equal to 1.5 weeks of base pay plus C.O.L.A. (if applicable) for each full year of service up to a maximum of thirty-nine (39) weeks.

50 -48- Page2 11"RANSFER/CLOSING OF FACILITY Contined... In the event that the operation at the Burlington PDC closes and relocates to new facility within a 150 km radius of the current location of the Burlington PDC, permanent full time employees will be offered employment for available positions at the new location on a seniority basis. Once all positions at the new location are filled, employees who are not offered positions at the new location due to an unavailability Of jobs and are permanently laid off, will be entitled to receive a lump sum severance payment equal to 1.5 weeks of base pay plus C.O.LA. (if applicable) for each full year of service up to a maximum of thiry-nine (39) weeks ln the event that the operation at the Burlington PDC closes and relocates to a new facility beyond a 75 km radius of the Burlington PDC, permanent full time employees will be offered available positions at the new location in order of seniority, and wm have the option of accepting the transfer or permanent layoff within 30 days of being notified. Those accepting permanent layoff on this basis will be entitled to receive a lump sum severance payment equal to 1.5 weeks of base pay plus C.O.LA. (if applicable) for each ful\ year of service up to a maximum of thirty-nine (39) weeks. The severance amount determined above will include any employee entitlement to any notice, termination or severance payments required by Federal or Provincial legislation pertaining to mass termination, plant closing or any similar sib.rations. Yours truly Albert Versteeg Manager,!Parts Distribution Canada

51 August 8, 1997 Renewed 2000 Renewed 2003 Revised 2006 Renewed 2009 Renewed 2014 Mr. M. McKinlay Chairperson C.A.W. Local 504 Navistar Unit Burlington PDC Letter# 9 SUBJECT: RETIREMENT INCENTIVE For the term of this collective agreement only, the Company will encourage senior employees to elect regular early retirement by offering a one time lump sum retiring allowance of $30, This reuiring allowance will be paid under the following conditions. If: 1. The employee who on October 1, 2006, is eligible to retire (defined as Normal Retirement or Regular Early Retirement in the Noncontributory Retirement Plan Agreement), retires on or before October 1, or 2. The employee who first becomes eligible to retire (defined as Regular Early Retirement in the Non-Contributory Retirement Plan Agreement), after October 1, 1997 will retire 30 days from the date they first become eligible to retire. The employee who elects retirement under the above will give the company not less than 30 days notice prior to the effective date of retirement. Yours truly Albert Versteeg Manager, Parts Distribution Canada

52 - 50- September 21, 2000 Revised: September 25, 2003 Renewed 2006 Renewed 2009 Renewed 2014 Letter# 10 Mr. Mike McKin!ay Chairperson Local 504, CAW International Truck and Engine Corporation Canada Unit Burlington P.D.C. SUBJECT: BANKING OVERTIME HOURS In our mutual effort to he\p address the Company's concern over excessive absenteeism at the Burlington PDC and the Union's desire to provide more personal time off for employees, it was agreed for all overtime worked full time employees will have the option of banking the overtime hours worked, at time and one-half, up to a maximum cumulative balance of 40 hours on a 12 m:mth rolling basis. By December 1st each year every employee must advise the Company in writing if he/she elects to exercise this option for the following calender year. Employees may then take time off using the banked hours, in increments of at least four (4) hours, receiving regular straight time rate of pay. In order to manage the Company's business, a minimum one working day's advance notice shall be required and time off will be granted at management's discretion. This program Will be reviewed annually to assure it is mutually satisfactory to both parties and if not can be terminated by either party. Yours truly, Albert Versteeg Manager, Parts Distribution Canada

53 Letter#11 September 29, 2006 Renewed 2009 Renewed 2014 Mr. Mike McKinlay Chairperson Local 504, CAW International Truck and Engine Corp. Unit Burlington, PDC Subject: Shift Premium For the term of the collective agreement the Company agrees to reimburse the Shift Premium outlined in section 9.11 for all hours worked outside the core business hours. As it stands today this will be 8 am to 4:30 pm but is subject to change as the needs of the business dictate. For the purpose of determining core hours it is where the majority of employees are working during the day shift as outlined in section g_o1. Yours Truly Albert Versteeg Manager, Parts Distribution Canada.

54 INSURANCE PROGRAM AGREEMENT INDEX Introduction Section 1 - Section 2 - Section 3 - Section 4 - Section 5 - Section 6 - PARTI Continuation of Established Program Finance and Administration Subrogation Table of Benefits Duration of Agreement Parties in Interest and Their Successors DISABILITY BENEFITS FOR HOURLY EMPLOYEES 5 Article I Section 1 - Section 2 - Section 3- Section 4- Article II Section 1 - Section 2 - Section 3 - Weekly Sickness and Accident Benefits Effective Date Weekly Sickness and Accident Benefits Claims Procedure General Provisions Long Term Disability Benefits Long Term Disability Benefits Amount of Benefits Proof of Disability PART II GROUP LIFE INSURANCE PROGRAM 14 Article I Article II Article Ill Section 1 - Section 2 - Article IV Section 1 - Section 2 - Section 3 - Section 4 - Section 5 - Article V Effective Dates Term Life Insurance Benefits Insurance Continuation Employees Age 65 & Over Retired or Terminated Before Age 65 Supplemental Survivor Benefits Transition Survivor Income Benefits Bridge Survivor Income Benefits Assignment & Attachment Proof of Death and Entitlement Waiver Accidental Death & Dismemberment Insurance

55 2 Article VI Page Payment of Group Life Insurance and Accidental Death & Dismemberment Insurance 26 Article VII Privilege of Converting Term Insurance 27 Article VI II Optional Group Life Insurance 28 Section 1 - Eligibility Date 28 Section 2 - Enrollment and Effective Dates 28 Section 3- Amount of Insurance 29 Section 4 - Contributions 29 Section 5 - Payment of Benefits 29 Section 6 - Cessation of Insurance 30 Section 7 - Conversion Privilege 30 PART Ill HOSPITAL, SURGICAL & MEDICAL BENEFITS 32 Article I Effective Dates 32 Article II Ontario Health Insurance Plan 32 Articl'e 111 Semi-Private Hospital Care 32 Articlle IV Prescription Drug Benefits 34 SecUon 1 - Covered Prescription Drug Expense 34 Section 2 - Benefit Payment 34 Section 3- Exclusions 34 Section 4 - Definitions 35 Article V Dental Expense Benefits 36 Section 1 - Description of Benefits 36 Secti.on 2 - Covered Dental Expenses 36 Section 3 - Maximum Benefit 38 Section 4 - Predetermination of Benefits 39 Section 5 - Limitations 39 Section 6 - Exclusions 40 Section 7 - Coordination of Benefits 41 Section 8 - Subrogation 42 Section 9 - Proof of Loss 42 Section 10 - Definitions 42

56 3 Article VI Vision Expense Benefits Program 44 Section 1 - Effective Date 44 Section 2- Coverage 44 Section 3- Covered Expenses 44 Section 4- Benefit Payment 44 Section 5 - Limitations 44 Section 6 - Exclusions 45 Section 7 - Coordination of Benefits 45 Section 8 - Definitions 46 Article VII Prosthetic Device Expense Benefits 47 Article VII I Durable Medical Equipment Expense Benefits 48 Chiropractor/Physiotherapy/Massage Therapy 49 PSA Testing (Prostate Specific Antigen) 49 Page Article IX Out-of-Province Hospital, Surgical and Medical Expense Benefits 50 Article X Land Ambulance 52 Article XI Hearing Aid Expense Benefit Program 53 Section 1 - Description of Benefits 53 Section 2 - Covered Hearing Aid Expenses 53 Section 3 - Benefit Payment 53 Section 4 - Limitations 53 Section 5 - Exclusions 53 Section 6 - Coordination of Benefits 54 Section 7 - Definition 55 Article XI General Provisions 56 Section 1 - Payment of Benefits 56 Section 2 - Exclusions - Applicable to All Articles of Part Ill 56 Section 3 - Coverage for Retired Employees and Surviving Spouses 57 Section 4 - Coordination of Benefits 57 Section 5 - Recovery of Benefits 60 PART IV GENERAL PROVISIONS RELATING TO PART I THROUGH Ill 61 Article I Definitions 61

57 4 Article II Eligibility For Coverage 62. Section 1 - Eligibility to Continue Coverage 62 Section 2 - Eligible Employees 62 Section 3 - Required Information & Coverage for Employees 62 Section 4 - Effective Date of Insurance 63 Section 5 - Changes in Amount of Insurance 64 Section 6 - No Duplication of Coverage 64 Section 7 - Change in Family Status 64 Section 8 - Integration with Applicable Federal or Provincial Laws 64 Section 9 - Payment of Contributions 65 Article Ill Termination of an Employee's Coverage 66 Section 1 - Breaks in Service 66 Section 2 - Failure to Report 66 Section 3 - Failure to Return from Disability 66 Section 4 - Military or Similar Service 66 Section 5 - Separation Pay 66 Section 6 - Retirement 66 Sectiion 7- Disputed Termination 67 Sectilon 8 - Labour Disputes 67 Section 9 - Failure to Make Contributions 68 Page Article IV Article V Eligibility For Coverage Following Termination Thereof 68 Continuation of Insurance While Absent From Work 68 Section 1 - Leave of Absence 69 Section 2 - Disability 69 Section 3 - Laid-Off Employees 69 Article VI Payment of Claims 70 Section 1 - Claim Forms 70 Section 2- Time of Payment of Claims 70 Section 3 - Payment of Claims 70 Article VII Recovery of Benefit Overpayments 71 LETTERS Letter# 1 Out of Province 72

58 - 1 - APPENDIX "D" INSURANCE PROGRAM AGREEMENT This Agreement is entered into this 14th day of October 2014 between NAVISTAR CANADA, INC. (hereinafter referred to as the "Company") and UNIFOR, Local Union 504, (hereinafter referred to as the "Union"), acting on behalf of and as a duly authorized bargaining agent for employees of the Company employed within the appropriate bargaining unit represented by the above Local Union. The effective date of this Agreement shall be April 30, Section 1 - Continuation of Established Program The parties agree to merge herein all of their agreements with respect to the terms and conditions of eligibility, costs, and benefits pertaining to disability, hospital, surgical, medical, prosthetic devices, durable medical equipment, dental, drug, vision care, hearing aid, out-of-province and life insurance benefits. This Agreement and the attached Parts I through IV shall replace and supersede all previous agreements, understandings, and commitments of the parties made in connection with these benefits. Section 2 - Finance and Administration The Company shall pay the balance of the net cost of the Plans provided by Parts I through Ill over and above required contributions specified therein and shall receive and retain any experience refunds or reimbursements under whatever name arising out of this Agreement in the event the Company elects to provide all or any part of the benefits of the Plans through insurance. In the event of amendment to existing legislation or coming into force of new legislation which reduces the amount of premium payable for any of the Plans provided by this Agreement, the Company's only obligation shall be to pay the amount of the new reduced premium, and any savings or excess shall ensure to the benefit of and be the property of the Company. The Company shall be responsible for the administration of the Plans set forth in Parts I through IV. All administrative expenses incurred by the Company with respect to the administration of Parts I through IV shall be borne by the Company. No matter respecting the Program as modified and supplemented by this Agreement or any difference arising thereunder shall be subject to the grievance procedure established in the Collective Bargaining Agreement between the Company and the Union. Procedures developed at the local operation with respect to discussions between Company and local union representatives in regard to the status of benefit claims presented under Parts I through IV shall continue in effect under this Agreement.

59 - 2 - In the event the local procedures do not result in disposition of the claim, the Personnel Services Department will furnish upon request of the President of the Local Union, or his representative as designated in writing to the Personnel Services Department, any necessary information concerning the status of a claim upon which the question has arisen. After the Personnel Services Department has furnished information concerning the status of a claim, the President of the Local Union or, his representative as designated in writing to the Personnel Services Department, may request a meeting with representatives of the Company for the purpose of discussing any specified claims upon which questions remain. The date upon which such meetings are to be held will be determined by mutual agreement. All questions raised with respect to such claims will be based on the provisions of this Insurance Program Agreement, and the responses to such questions will be in accordance with such Agreement. In the event the response of the Personnel Services Department is, in the opinion of the Union, in violation of a provision or provisions of the Insurance' Agreement, the Union may request the appointment of an Impartial Arbitrator to hear and determine such dispute. Such Arbitrator will be selected in the same manner as provided for under the Collective Agreement. If it is a question of whether an employee is totally disabled for Long Term Disability purposes, the procedure for determining such dispute under the Non-Contributory Retirement Plan Agreement shall be utilized to determine such questions and the Arbitrator shall be bound by the' determination made under that procedure in making his decision. The Arbitrator shall make his decision in accordance with the applicable provisions of this Agreement and he shall have no authority to add to or subtract from or modify any of the terms of this Agreement, nor to change or add to any benefit provided by the Agreement, nor to waive or fail to apply any requirement of eligibility for a benefit under the Agreement. No decision of an Arbitrator in one case shall create a basis for a retroactive adjustment in any other case prior to the date of written filing of such other claim. There shall be no appeal from any ruling by the Arbitrator which is within his authority. Each such ruling shall be final and binding on the Union and its members, the employee or employees involved, and on the Company. Any case referred to the Arbitrator on which he has no authority to rule shall be referred back to the parties. The Company and Union shall bear equally the fees and expenses of the Arbitrator. Section 3 - Subrogation In the event of any payment for services under Parts I or Ill the Company or the insurance company shall be subrogated to all rights of recovery of the Employee or Dependent against any person or organization except against insurers on policies of insurance issued to and in the Employee's or Dependent's name, and the Employee or his Dependent shall, at the request of the Company or the insurance company, execute and deliver such instruments and papers as may be required to do whatever else is necessary to secure such rights.

60 - 3 - Section 4 - Table of Benefits The following Table of Benefits applies for the benefits provided under Parts I and II. Group * Term Weekly Monthly Life Disability L.T.D. Base Hourly: Earnings Insurance AD&D Benefits Benefits (Insurance Class) Less than $ ,000 17, ,405 $16.40 but less than $ ,500 17, ,435 $16.75 but less than $ ,500 18, ,470 $17.10 but less than $ ,000 18, ,500 $17.45 but less than $ ,000 19, ,530 $17.60 but less than $ ,250 19, ,545 $17.80 but less than $ ,500 19, ,560 $18.15 but less than $ ,500 19, ,590 $18.50 but less than $ ,000 20, ,620 $18.85 but less than $ ,000 20, ,650 $19.20 but less than $ ,500 20, ,680 $19.55 but less than $ ,500 21, ,710 $19.90 but less than $ ,000 21, ,740 $20.25 but less than $ ,000 22, ,770 $20.60 but less than $ ,500 22, ,800 $20.95 but less than $ ,500 22, ,830 $21.30 but less than $ ,500 23, ,860 $21.65 but less than $ ,500 23, ,890 $22.00 but less than $ ,500 24, ,920 $22.35 but less than $ ,000 24, ,950 $22.70 but less than $ ,000 25, ,985 $23.05 but less than $ ,500 25, ,015 $23.40 but less than $ ,500 25, ,045 $23.75 but less than $ ,500 26, ,075 $24.1 O but less than $ ,000 26, ,105 $24.45 but less than $ ,000 27, ,135 $24.80 but less than $ ,500 27, ,165 $25.15 but less than $ ,500 27, ,195 $25.50 but less than $ ,000 28, ,225 $25.85 but less than $ ,000 28, ,255 $26.20 but less than $ ,500 28, ,285 $26.55 and over 58,250 29, ,315 * In no event will the Weekly Disability Benefit payable under this Plan be less than the disability benefit the employee would have received had he been eligible for an Employment Insurance disability benefit on the date he first became disabled.

61 -4- Section 5 - Duration of Agreement This Agreement shall remain in full force and effect without change until 11 :59 p.m. on April 27, 2018, and thereafter from year to year unless within three (3) months prior to the expiration date of this Agreement, or any anniversary tl1ereof, either party shall give written notice to the other party of its desire to make changes and of the specific changes desired or to terminate the same. Section 6 - Parties in Interest and Their Successors Because insurance programs and agreements for the establishment of the same are by their nature matters requiring the parties to enter into commitments for considerable periods of time, it is expressly understood and agreed, and the employees by their ratification and acceptance consent, that the provisions of this Agreement shall inure to the benefit of and be binding upon any other collective bargaining representative which may hereafter represent the employees in the appropriate unit, in the same manner and to the same extent as if it were named herein as the Union. IN WITNESS WHEREOF: FOR THE COMPANY FOR THE UNION: By~~~~~~~~~~

62 - 5 - PARTI DISABILITY BENEFITS FOR HOURLY EMPLOYEES ARTICLE I WEEKLY SICKNESS AND ACCIDENT BENEFITS Section 1 - Effective Dates The benefits provided by this Article shall be payable with respect to any claims initially incurred on or after the effective date of this Agreement by any employee who is entitled to continue coverage as provided in Article II of Part IV. Benefits for all claims initially incurred prior to the effective date of this Agreement shall be paid under the applicable provisions of the prior Agreement which shall continue in effect for this purpose. Section 2 - Weekly Sickness and Accident Benefits (hereinafter referred to in this Agreement as "Weekly Disability Benefits".) (a) Weekly Disability Benefits: An Hourly rated Full-Time Employee will receive a Weekly Disability Benefit, dependent upon his Insurance Class at the commencement of the period of disability, and determined from the Table of Benefits set out in the Agreement sedion to for a period of disability subject to the limitations imposed by Section 2(c) below "Qualifications for Benefits", and the submission of satisfactory proof of disability as provided in Section 3(b) below "Proofs of Disability", and subject to the limitation as provided in Section 2(e) below "Unemployment Compensation". (b) Weekly Disability Benefit for a Partial Week: Weekly Disability Benefit payments will commence on the day of the week determined by application of Section 2(c) and will continue thereafter subject to the provisions of that Section. For these purposes, a day of absence from work includes any day on which the employee is scheduled to work more than four hours but works four hours or less due solely to non-occupational illness or injury. The Weekly Disability Benefits for less than a full week are determined on the basis of one-fifth of the Weekly Disability Benefit for each regular work day of disability. (c) Qualifications for Weekly Disability Benefits: If an employee is wholly disabled by a sickness or by an accidental bodily injury for which the employee is not entitled to benefits under any Workers' Compensation or occupational disease law, and shall be prevented by the disability from performing work, a Weekly Disability Benefit shall be paid for the period of inability to work (this period being hereinafter referred to as a period of disability) provided, however, that:

63 - 6 - (1) The disability commenced while the employee was covered by this Article I. (2) The duration of Weekly Disability Benefits for any one period of disability as defined in Subsection (6) below shall be the lesser of 52 weeks or a period equal to the number of full weeks that have elapsed from the employee's last date of hire or rehire to the date disability commenced, but such benefit period shall not be less than fifteen ( 15) weeks. However, if at the date of expiration of the period Weekly Disability Benefits are payable, the employee is confined in a hospital, for the same disability at the date of expiration of the maximum period for which he is entitled to receive Weekly Disability Benefits, and such benefits were payable for less than 52 weeks, benefits shall continue to be payable while he continues to be so confined, but in no case beyond the end of such 52 week period. (3) No Weekly Disability Benefit shall be paid for any period of disability resulting from sickness, prior to the employee's sixth consecutive regular work day of disability or the first regular work day of disabilily on which the employee is confined in a Hospital for at least 24 consecutive hours, or the first regular work day following an out-patient surgical procedure for which a benefit of at least $25 is payable under the Ontario Health Insurance Plan, whichever is earlier. Notwithstanding the above, no Weekly Disability Benefit will be paid for any day other than a regular work day. (4) No Weekly Disability Benefit shall be paid for any disability resulting from an injury prior to the first day on which the employee is disabled as a result o"f such injury. (5) No Weekly Disability Benefit shall be paid for any period during which the employee is not personally seen and trealed by a physician. The requirement that an employee be personally seen and treated by a physician shall be deemed to have been met if an employee under treatment for alcohol or drug abuse in a residential or outpatient substance abuse treatment facility approved for benefits under the Articles II, Ill or IV of Part Ill furnishes the Company with certification of disability, provided either by the facility's physician director, or by a physician consultant selected by the facility, based on information furnished by, and upon the recommendation of, the therapist who is supervising the employee's therapy. For such certification to be acceptable, the physician director or physician consultant providing it must be a licensed doctor of medicine. (6) Successive periods of disability separated by less than three months of active, full-time return to work with the Company shall be considered one period of disability unless the subsequent disability is due to an injury or disease entirely unrelated to the causes of the previous disability and the employee has returned to full-time work for at least one day. (7) No Weekly Disability Benefit shall be payable during the period an employee is on pregnancy leave of absence, or could be placed on a pregnancy

64 - 7 - leave of absence by the Company in accordance with any pregnancy leave provisions of the relevant Provincial Statutes. (8) No weekly benefit shall be payable to an employee during the period he is suspended from his employment by the Company, from the date of suspension to the date the employee is scheduled to return to work, and no such period of suspension shall be counted in computing any waiting period before disability benefits begin. Furthermore, any period of suspension shall be excluded in determining the maximum period of fifty-two weeks for which disability benefits may be payable. In the event the suspension is set aside and the employee is granted back pay for part or all of the period of his suspension, waiting period credit and disability benefits will be granted to the same extent as he would have received such credits or benefits had he not been suspended during the period for which back pay is granted. (d) Absence from Work Due to Occupational Disability: Weekly Disability Benefits shall be payable even though the disability is an occupational disability arising out of and in the course of employment with the Company on the same terms as would have applied if the disability had been non-occupational in nature but in an amount equal to the amount by which the employee's Weekly Disability Benefit exceeds the weekly amount (whether commuted or not and whether compromised or not as a redemption award or otherwise), that the employee, by complying with the provisions thereof, would be entitled to receive for time lost from work under any applicable Workplace Safety & Insurance Board or Occupational Disease Law (not counting payments specifically for hospitalization, surgical, or medical expenses and payments or specific allowances for loss, or 100% loss of use, of member or disfigurement). If an employee is receiving Workplace Safety & Insurance Board payments because of employment with the Company for such disability at the expiration of the maximum period for which he is entitled to Weekly Benefits, and such benefits were payable for less than 52 weeks, benefits shall continue to be payable while he continues to receive Workplace Safety & Insurance Board payments, but in no case beyond a 52-week period. (e) Unemployment Compensation: No Weekly Disability Benefit shall be payable for any day for which an employee receives an unemployment regular benefit under any unemployment compensation. Section 3 - Claims Procedure (a) Notice of Claim: Notice of claim must be given to the Company immediately after the occurrence or commencement of any disability covered by this Article I, unless the employee gives a satisfactory reason for failure to give notice as required. Notice given by or on behalf of the employee to the Company, with information sufficient to identify the employee, his condition, and his attending physician, shall be deemed to be sufficient notice. Such notice shall designate the home or other address where the employee can be located.

65 - 8 - (b) Proof of Disability: Before a claim is paid, the employee must provide written medical evidence of disability from a physician to the Company. Medical evidence of disability consists of objective medical observations, physical findings, or laboratory or x-ray tests or other positive evidence sufficient to establish the existence of disability and supportive to a proper diagnosis of a constitutional disease. The Company shall have the right to withhold Weekly Disability Benefits until satisfactory medical evidence of disability is furnished, which may be accomplished by the disabled employee making himself available for examination by the Insurance Company's or Company's Medical Examiner. In all cases, proof of disability must be submitted within one year after the commencement of the period of disability. For the purpose of this Article: (1) Disability resulting from poison, if intentionally administered, or from elective surgery where there is no hospital confinement, or from sunburn, shall be classed as due to sickness and disability resulting from poison, other than described above, or from an overdose of medicine or drugs taken by mistake, or from sunstroke or frostbite shall be classed as an injury. (2) An injury will be recognized as having occurred accidentally if the employee furnishes satisfactory evidence of an unexpected event of such a nature as to cause disability. Sprains, strains, wrenches and the like will be recognized when accompanied by satisfactory evidence of an unexpected event, where visible evidence is lacking but there is satisfactory medical evidence to establish the existence of disability. Section 4 - General Provisions (a) Physical Examinations: The Company or the Insurance Company at its own expense shall have the right anal opportunity to examine the person of the covered employee when and as often as it may reasonably require during the pendency of a claim hereunder. During the pendency of a claim hereunder, the covered employee shall keep the Company advised as to his home or other address where he can be located in order that the Company may be in a position to exercise its right of examinations provided for above. (b) Recovery of Weekly Disability Benefits: If the Company or Insurance Company makes weekly payments to an employee on account of a claim for Weekly Disability Benefits under this Part I, and subsequently it is determined that no benefits are payable or a smaller amount is payable than was anticipated, the employee shall be obligated to repay in cash the amount of such overpayment, upon notice of the amount to be repaid, and, if repayment is not made within 60 days after request is made by the Company, then such re-payment shall be made from any earnings or any

66 -9- Insurance Company benefits under Parts I and Ill thereafter payable to the employee. (c) Excluded Disabilities and Losses: The Company shall not be liable for any disability resulting from an intentionally self-inflicted injury, or where a contributing cause was the employee's commission of a felony.

67 ARTICLE II LONG TERM DISABILITY BENEFITS The benefits provided by this Article II shall be payable for periods of total disability as defined below provided the employee is eligible for coverage and is covered as provided in Article II of Part IV. Benefits are only payable for a disability commencing on or after the effective date of this Agreement. For employees who became disabled prior to the effective date of this Agreement, benefits shall be paid under the applicable provisions of the Insurance Program Agreement in effect at the commencement of the employee's total disability which shall continue in effect for this purpose. Section 1 - Long Term Disability Benefits (A) Benefits: Full-time employees will receive Long Term Disability Benefits in the amounts determined by Section 2, subject to the qualifications and limitations of this Section and the satisfactory proof of disability as provided in Section 3. (B) Qualifications for Benefits: Long Term Disability Benefits will be payable to an employee: (1) Who is insured for and has exhausted the maximum number of Weekly Disability Benefits provided to an employee under Article I, (in order to be eligible for Long Term Disability Benefits, an employee with 1 O or more years of credited service under the Company retirement plan must submit evidence that he has applied for benefits to which he may be entitled under the Pension Plan): (2) Who, at the time he exhausts Weekly Disability Benefits and during a continuous period of disability thereafter, is totally disabled, which for the purpose of this Article II means that the employee is physically unable to work, provided that, (a) Long Term Disability Benefits to an eligible applicant shall be for the period commencing the day following the last day of disability included within the period for the maximum number of Weekly Disability Benefits, including weeks in which Weekly Disability Benefits were partially or wholly offset because of receipt of Statutory or Workplace Safety & Insurance Board benefits or benefits provided under any unemployment compensation law; (b) The period during which Long Term Disability Benefits may be payable shall be the number of whole months in excess of twelve that have elapsed between the employee's last date of hire or rehire and the commencement of disability, but in no event beyond the date of death, the time he no longer qualifies as totally disabled, or the. last day of the month in which the employee attains the age at which a benefit under the Old Age Security Act is first payable provided, however, that if an employee becomes disabled on or after age 63 and becomes

68 eligible for Long Term Disability Benefits, such benefits will be payable for up to 12 months, but in no event beyond the month in which the employee attains age 68. If an employee's return to work with the Company is not effective to qualify him for a new period of Weekly Disability Benefits, benefits under this Article II shall be suspended while he is working, and upon a subsequent cessation of work due to medical reasons, his Long Term Disability Benefits will recommence provided he qualifies as totally disabled. If an employee while receiving Long Term Disability Benefits engages in any substantial gainful occupation or employment other than for the Company, his Long Term Disability Benefits shall likewise be suspended for the period of employment. Upon application, after termination of that employment, Long Term Disability Benefits will again be paid provided the employee is then qualified as totally disabled. (c) For purposes of applying the maximum period for monthly Long Term Disability Benefits, a month in which the benefits are partially or wholly offset by benefit payments from sources listed in Section 2(b) below or suspended under Section 1 (2)(b) above, are counted as a full month. Fractions of the first and last month are counted as fractions of a month. (d) The cumulative total number of months during any previous periods of eligibility for Long Term Disability Benefits, regardless of whether for the same or related disabling condition, reduces the maximum number of monthly benefit payments for which the individual is eligible when Long Term DisabilityBenefits again commence. (e) There is no ineligibility for Long Term Disability Benefits because of work which is determined to be primarily for training under a recognized program of vocational rehabilitation. (f) The benefits accrued under this Article during any calendar month will be payable as of the first day of the next succeeding month. Benefits payable for a period of less than a full calendar month shall be prorated on the basis of the ratio of calendar days of eligibility to 30 days. (g) No benefit shall be payable for any period of disability resulting from service in the armed forces (unless he has been in employment with the Company at least 10 years after separation from that service) or for any disability resulting from an intentionally self- inflicted injury, or where a contributing cause was the employee's commission of a felony. Section 2 - Amount of Benefits (a) Subject to reduction on account of benefits from other sources, as provided in Section 2(b) below, the amount of monthly benefits payable under this Article shall be determined in accordance with the Table of Benefits in the Agreement section. (b) The amount of monthly Long Term Disability Benefits payable in accordance with (a) above will be reduced by the monthly equivalent of the total of the

69 following benefits from other sources for the same period, for which the employee is eligible: (1) Lost time benefits under Workplace Safety & Insurance Board Laws or other laws providing benefits for occupational injury or disease, including lump-sum settlements, but excluding specific allowances for loss, or 100 percent loss of use, of a body member; (2) Disabilily or old-age benefits to which the person is entitled (amount applicable to such person only} under any existing or future Provincial or Federal Legislation which becomes payable, except old-age benefits reduced because of the age at which received, or benefits payable on a "needs" basis; (3) Benefits under any Provincial or Federal law providing benefits for working time lost because of disability; (4) Any benefits under a retirement plan covering employees olf the Company to which the Company has contributed (except for that portion of those benefits which is attributable to employee contributions) unless the retirement plan takes into account in determining the amount of benefits payable, the benefits payable under this Article II. (c) In determining monthly equivalent reductions in (b} above, wee1kly and any periodic payments, shall be allocated to monthly periods. In the case of payments made on a weekly basis, the monthly equivalent shall be 4.33 times the weeldy benefit amount and, lump-sum settlements under Workplace Safety & Insurance Board law will be converted to the monthly equivalent of the amount of the Workplace Safety & Insurance Board benefit to which the employee would have been entitled under the applicable law had there been no lump-sum payment, but not to exceed in total the amount of the settlement. (d) Benefits under any Provincial or Federal law as described in Section 2(b) of this Article II deducted from Long Term Disability Benefits will be reimbursed to the employee upon presentation of satisfactory evidence that these benefits were applied for and denied; provided, however, that a reduction in Long Term Disability Benefits will not be reimbursed if benefits under any Provincial or Federal law were denied because of refusal to accept vocational rehabilitation services. (e) The Company or Insurance Company may require each applicant or recipient of Long Term Disability Benefits to certify or furnish verification of the amounts of his income from sources listed in (b) above. The amount of any Long Term Disability Benefit payments in excess of the amount that should have been paid, after reduction for the income from other sources, may be deducted from future Long Term Disability Benefits, earnings, and pension. (f) The Long Term Disability Benefit first payable will not be affected by any subsequent increase in the benefits under Section 2(b) (1), (2), (3) or (4) except if the increase resulted from an adjustment in the original determination of these benefits. Section 3 - Proof of Disability

70 The basis of proof of disability is medical findings of sufficient severity that any person so afflicted would be prevented from working as defined in this Article 11. The Company or the Insurance Company will require the employee, as a condition of eligibility, to submit to an examination of his person by a physician designated by the Company or the Insurance Company for the purpose of determining his initial or continuing disability. Mental or non-organic disease as a cause for total disability must have a psychiatrist's certification that the employee's infirmity is of major and psychotic degree.

71 PART II GROUP LIFE INSURANCE PROGRAM ARTICLE I EFFECTIVE DATES The benefits provided by this Part II shall be payable with respect to any claim incurred on or after the effective date of this Agreement by any employee who is entitled to continue coverage as provided in Article II of Part IV. Benefits for any claim incurred prior to such effective date shall be paid under the provisions of the Agreement in effect prior to that date, which shall continue in effect for this purpose. ARTICLE II TERM LIFE INSURANCE BENEFITS The amount of insurance for employees who become covered under this Part II prior to age 65 shall be as set forth in the Table of Benefits in the Agreement section. ARTICLE Ill INSURANCE CONTINUATION Section 1 - Employees Age 65 and Over, and Retired Employees Age 65 and Over, excluding anyone hired on or after October 1, 2003 Employees who attain age 65 or who retire on or after the effective date of this Agreement shall continue to be covered for group life insurance in amounts determined as follows: (1) On the first day of the calendar month following the month in which the 65th birthday of an employee or retired employee insured for group life insurance under this Part 11 occurs, the amount of life insurance which he had under this Part II immediately prior thereto shall be reduced by 2% thereof, and shall further be reduced by an equal amount on the first day of eagh succeeding month in accordance with (a) and (b) below; provided, however, that if an employee continues to work after age 65, and the amount of his life insurance changes because of a change in his rate of pay, his life insurance in force and the amount of each monthly reduction shall be redetermined on the date of his life insurance changes and as though the amount of his most recent pay rate had been the amount in effect on the day preceding his 65th birthday. (a) If the employee or retired employee has 10 or more years of Credited Service at his 65th birthday, such reductions shall be made until the amount of his group life insurance under this Part II is reduced to 1-1/2% of the amount he had on the date his employment terminates based on the employee's base hourly rate on the day preceding such day multiplied by the number of years of Credited Service under the Non-Contributory Retirement Plan on the date his employment terminates, but in no event to less than $3,000 and such remaining amount of group life insurance,

72 called Continuing Group Life Insurance, will be continued thereafter for the remainder of his lifetime; (b) If the employee has less than 10 years of Credited Service at his 65th birthday, such reduction shall be made until his employment with the Company terminates and any amount of his group life insurance remaining when his employment with the Company terminates shall then be discontinued; provided, however, that if such employee attains ten years of credited service after his 65th birthday, his life insurance shall thereafter be reduced and continued as provided in (a) above. (2) For purposes of the reduction in life insurance established herein, an employee who becomes insured for group life insurance under this Part 11 at or after age 65 shall be considered as though he had been insured since age 65. (3) While an employee continues working after the age of 65, he will continue to be covered for Accidental Death and Dismemberment Insurance equal to one-half the reduced life insurance amount. Section 2 - Retired or Terminated Before Age 65 (a) Early and Special Early Retirement: If an employee is actively at work on or after July 2, 1965 and retires early under the Non-Contributory Retirement Plan, the Company will continue his Life and Accidental Death and Dismemberment Insurance in force to age 65. (b) Disability Retirement: If an employee retires under the Disability Retirement provisions of the Noncontributory Retirement Plan, the Company will continue his Life Insurance, Accidental Death and Dismemberment Insurance and Supplemental Survivor Benefits Insurance coverage until age 65. (c) An uninsured employee retiring before age 65 with pension benefits commencing on or after the effective date of this Agreement under the Noncontributory Retirement Plan without returning to work from a layoff or leave of absence shall become insured, if he is then under age 65, on the first day of the month following the month in which seniority is canceled because of such retirement for the same coverage he could otherwise have continued at the time of his retirement in the amount he had in force while last working. Such coverage shall then be continued subject to reduction at age 65 in accordance with Section I of Article Ill of this Part II.

73 ARTICLE IV SUPPLEMENTAL SURVIVOR BENEFITS Section 1 - Transition Survivor Income Benefit If an employee dies while insured for Survivor Income Benefits, leaving one or more Survivors, as defined below, payment of not more than 24 Monthly Survivor Income Benefits ("Transition Survivor Income Benefits") shall commence provided at least one Survivor is living on the first day of the month following the employee's death and then qualifies as his Survivor. The term "employee" for the purpose of Article IV shall include an employee retired on a permanent and total disability pension under the Non-Contributory Retirement Plan who has not attained age sixty-five (65). For eligible survivors of employees at work on or after January 1, '1981 the amount of the Transition Survivor Income benefits shall be $500 per month. The amount of Transition Survivor Income benefit shall be reduced by any survivor's, disability or retirement benefit under the Canada Pension Plan or any Old Age Security Benefits, as now in effect or hereafter amended. No such reduction hereunder shall reduce the monthly Transition benefit payable below the sum of $ For months in which two or more eligible survivors share a benefit, each survivor's share is computed as a fraction of the benefit that would be paid to him as a sole survivor, according to his own eligibility for statutory benefits. The first such Benefit is payable on the first day of the monlh following the employee's dealh. Thereafter, a Monthly Survivor Income Benefit is payable on the first day in each of the next 23 months, but if on the first day of any month after the employee's death no person then living qualifies as his Survivor, no such benefit is payable for that month or any subsequent month. Survivors are classified and defined as follows: (1) A "Class A or B Survivor" means the person who immediately prior to the employee's death is his or her spouse which for this purpose means the person to whom the employee is, and has been for at least one year, legally married; or spouse shall also mean a person of the opposite sex, who is, and, who has been for an immediately preceding continuous period of at least two years, cohabiting and residing with the employee and publicly represented by the employee as his or her spouse (hereinafter referred to as a common-law wife or husband). Where there is both a common-law and a legal wife or husband the spouse shall be deemed to be the person as designated by the employee, except that if the employee should die before designating a spouse, the Board as constituted under the Non-Contributory Retirement Plan, after considering all the pertinent facts involved, shall have the exclusive right to determine which person is the spouse. (2) A "Class C Survivor" means the employee's child who at the employee's death and at the time a survivor income benefit first becomes payable to such child is both unmarried and either (i) under 21 years of age or, (ii) at least 21 but under age 25 or, (iii) totally and permanently disabled at any age over 21; provided, however, that a child under clauses (ii) and (iii) must have been legally residing with and financially dependent upon the employee at the time

74 of his death. A child ceases to be a Class C Survivor upon marriage or if not totally and permanently disabled upon reaching his or her 25th birthday. To qualify as the employee's child, the child must be: (a) the employee's own child born prior to the first of the month following the employee's death, (b) the employee's legally adopted child or a child with respect to whom he had initiated legal adoption proceedings which were terminated by his death. (3) A "Class D Survivor" means the employee's parent for whom he had during the calendar year immediately preceding his death provided at least 50% of such parent's financial support if such parent was: (a) The employee's father or mother by blood relationship, or (b) The employee's adopting parent. (4) The Survivors entitled to each Monthly Survivor Income Benefit that becomes payable under this Section 1 shall be determined as follows: (a) The employee's Class A or Class B Survivor who is living on the first day of a month shall be entitled to the Benefit payable for such month; (b) If neither the employee's Class A or Class B Survivor is living on the first day of a month, persons who qualify on that day as his Class C Survivors, excluding any then deceased, shall be entitled to the Benefit payable for that month, two or more such persons to share the Benefit equally except as otherwise provided above in this Section 1; (c) If neither the employee's Class A or Class B Survivor is living on the first day of a month and no living person qualifies on that day as the employee's Class C Survivor, persons who qualify on that day as the employee's Class D Survivors, excluding any then deceased, shall be entitled to the Benefit payable for that month; two such persons to share the Benefit equally, except as otherwise provided above in this Section 1. Section 2 - Bridge Survivor Income Benefits There shall also be payable in accordance with the terms and conditions of this Article to a Class A or Class B eligible survivor, both terms as defined in Section 1 above, who was 45 years of age or more on the date of the employee's death or is under 45 years of age and whose age at the time of the employee's death plus the deceased employee's years of credited pension service total 55 or more, and who has received 24 monthly payments of the Transition Survivor Income Benefit provided in Section 1 above, an additional survivor income benefit (hereinafter referred to as a Bridge Survivor Income Benefit). The amount of the Bridge Survivor Income Benefit for a survivor of an employee at work on or after October 1, 1999 shall be $ a month.

75 The Bridge Survivor Income Benefit shall be reduced by any survivor's or disability benefit payable under the Canada Pension Plan as now in effect or hereafter amended, to a Class A or Class B Survivor. Effective October 1, 1983, no such reduction shall reduce the monthly Bridge Benefit payable below the sum of $ Such benefit shall be paid as follows: (i) The Bridge Survivor Income Benefit will become payable commencing with the first month following the month for which the 24th monthly payment of the Transition Survivor Income Benefit is paid. (ii) The Bridge Survivor Income Benefit will cease to be paid immediately upon the occurrence of: (a) The death or remarriage of the Class A or Class B eligible survivor, (on or after the effective date of this Agreement, remarriage shall include a legal marriage or the cohabiting and residing by the Class A or Class B survivor with a person of the opposite sex or same sex for a continuous period of at least two years during which such survivor publicly represents such person to be her or his spouse), or (b) Attainment by Class A or Class B eligible survivor of such age at which Old Age Security Benefits become payable under any Federal legislation, as now in effect or hereafter enacted or amended, or (c) The commencement of a period covered by a waiver in accordance with Section 5 below. Section 3 - Assignment and Attachment An employee may not assign his Survivor Income Benefits and his Survivors may not assign any Monthly Survivor Income Benefit that becomes payable. To the extent permitted by applicable law, Monthly Survivor Income Benefits shall not be subject to attachment or other encumbrance or subject to the debts or liability of any Survivor. Section 4 - Proof of Death and Entitlement Survivor Income Benefits become payable only if due proof of the employee's death is submitted to the Insurer. Payment of each Monthly Survivor Income Benefit is subject to the condition that the person claiming the Benefit submit fo the Insurer due proof of entitlement to such Benefit. Section 5 - Waiver A Class A or Class B eligible survivor shall be ineligible for a Transilion or Bridge Benefit if a higher Survivor Benefit is payable under the Non-Contributory Retirement Plan. The monthly Survivor Pension Benefit so paid shall be counted in determining the maximum number of monthly Transition or Bridge Benefit payments.

76 ARTICLE V ACCIDENTAL DEATH AND DISMEMBERMENT INSURANCE Accidental Death and Dismemberment Insurance is only provided while group life insurance is in force, but not beyond age 65 for retired employees. If an employee, or retired employee under age 65, while insured for Accidental Death and Dismemberment Insurance sustains bodily injuries or a non-occupational disease which result in death or loss of hand, foot or sight of eye, within one year of such injuries, benefits will be paid as specified in the Table of Benefits below, provided that: (a) No benefit shall be payable for the loss of a hand, foot, eye or both eyes by injury, or the loss of a hand or foot by non-occupational disease if the employee fails to survive the date of such loss for a period of at least one year. (b) No benefits shall be payable for the loss of both eyes by non-occupational disease if the employee fails to survive such loss by at least ninety days. (c) No benefit shall be payable for death unless death occurs within one year after accidental bodily injury. Table of Benefits Loss of Life Loss of Both Hands or Both Feet Loss of Entire Sight of Both Eyes Loss of One Hand and One Foot Loss of One Hand and Entire Sight of One Eye Loss of One Foot and Entire Sight of One Eye Loss of Speech and Hearing in Both Ears Loss of Use of Both Arms or Both Hands or Both Feet Quadriplegia Paraplegia Hemiplegia Loss of One Arm or One Leg Loss of Use of One Arm or One Leg Loss of One Arm or One Foot Loss of Entire Sight of One Eye Loss of Use of One Hand or One Foot Loss of Speech or Hearing in Both Ears Loss of Thumb and Index Finger of Same Hand Loss of Four Fingers of Same Hand Loss of Hearing in One Ear Loss of All Toes on Same Foot The Principal Sum The Principal Sum The Principal Sum The Principal Sum The Principal Sum The Principal Sum The Principal Sum The Principal Sum Two Times the Principal Sum Two Times the Principal Sum Two Times the Principal Sum 3/4 of the Principal Sum 3/4 of the Principal Sum 2/3 of the Principal Sum 2/3 of the Principal Sum 2/3 of the Principal Sum 2/3 of the Principal Sum 1 /3 of the Principal Sum 1 /3 of the Principal Sum 1 /4 of the Principal Sum 1 /8 of the Principal Sum "Loss" shall mean with respect to hand or foot, the actual severance through or above the wrist or ankle joint; with respect or arm or leg, the actual severance through or above the elbow or knee joint; with respect to eye, the total and irrecoverable loss of sight; with respect to speech, the total and irrecoverable loss of

77 speech which does not allow audible communication in any degree; with respect to hearing, the total and irrecoverable loss of hearing which cannot he corrected by any hearing aidl or device; with respect to thumb and index finger, the actual severance through or above the first phalange; with respect to fingers, the actual severance through or above the first phalange of all four fingers of the same hand; with regard to toes, the actual severance of both phalanges of all toes of the same foot. "Loss" as used with reference to quadriplegia (paralysis of both upper and lower limbs), paraplegia (paralysis of both lower limbs), and hemiplegia (total paralysis of upper and lower limbs of one side of the body), means the complete and irrecoverable paralysis of such limbs. "Loss of Use" shall mean the total and irrecoverable loss of function of an arm, hand or leg, provided such loss of function is continuous for twelve consecutive months and such loss of function is thereafter determined on evidence satisfactory to the insurance company to be permanent. Repatriation Benefit When an injury results in loss of life of a covered person outside 150 km from their city of permanent residence or outside Canada and within 365 days from the date of the accident, the actual expense incurred for preparing the deceased for burial and shipment of the body to the city of residence of the deceased, but not to exceed $15,000. Rehabilitation Benefit For eligible injuries other than Loss of Life, the following may be paid: a) such training is required because of such injuries and in order for the insured employee to be qualified to engage in an occupation in which he would not have been engaged except for such injuries; b) expenses are incurred within two (2) years from the date of the accident; c) no payment will be made for ordinary living, traveling or clolthing expense. Family Transportation Benefit When injuries covered by this plan result in an insured person being confined as an in-patient in a hospital outside 150 km from the insured person's city of permanent residence or outside Canada and requires personal attendance of a member of the immediate family as recommended by the attending physician, in writing, the Company will pay for the expense incurred by the member of the family, for the transportation by the most direct route by a licensed common carrier to the confined Insured Person, but not to exceed the maximum of $15,000. Member of immediate family means the spouse, legal or common -law, parent, grandparent, child over age, brother or sister of the insured person. Spousal Occupational Training Benefit For eligible injuries result in a payment being made under the Loss of Life benefit section, this plan will pay in addition, the expense actually incurred, within 365 days

78 from the date of the accident, by the spouse of the insured employee for a formal occupational training program for the purpose of specifically qualifying such spouse to gain active employment in an occupation for which the spouse would otherwise not have sufficient qualifications. The maximum payable shall not exceed the maximum of $15,000. Home Alteration and Vehicle Modification Benefit For eligible injuries other than Loss of Life, that subsequently requires the use of a wheelchair to be ambulatory, the plan will pay the reasonable and necessary expenses actually incurred within 365 days from the date of the accident for: a) the one-time cost of alterations to the insured person's principal residence to make it wheelchair accessible and habitable; and b) the one-time cost of modifications necessary to a motor vehicle utilized by the insured person to make the vehicle accessible or operable for the insured person. Benefit payments herein will not be paid unless: a) home alterations are made by a person or persons experienced in such alterations and recommended by a recognized organization, providing support and assistance to wheelchair users; and b) vehicle modifications are carried out by a person or persons with experience in such matters and modifications are approved by the Provincial vehicle licensing authorities. The maximum payable shall be the expense actually incurred up to the greater of $10,000 or 10% of the insured person's Principal Sum amount to a maximum of $50,000. Day Care Benefit In the event of a Loss of Life, in addition to all other benefits payable under the plan, a Day Care Benefit equal to the reasonable and necessary expenses actual incurred, subject to the lesser of 5% of the insured person's Principal Sum amount or a maximum of $5,000 per year, on behalf of any dependent child of the insured person who is enrolled in a legally licensed Day Care Centre on the date of he Accident. The day care benefit will be paid each year for four (4) consecutive years, but only upon receipt of satisfactory proof that the child is enrolled in a legally licensed day care centre. "Dependent Child" means either a legitimate or illegitimate child, adopted child, step-child or any child who is in a parent-child relationship with the insured person and who is, twelve (12) years of age and under, and dependent upon the insured person for maintenance and support. Special Education Benefits In the event of a Loss of Life, in addition to all other benefits payable under the plan, a "special education benefit", of 5% of the Principal Sum up to a maximum of $5,000 per year, on behalf of any Dependent Child who, on he date of the accident, is enrolled as a full-time student in any post-secondary institution of higher learning, within 365 days following the date of the accident.

79 - 22- The "special education benefit" is payable annually for a maximum of four (4) consecutive annual payments but only if the dependent child continues his education as a full-time student in an institution of higher learning. Seat Beit Benefit In the event an insured person sustains an injury which results in a payment under the Table of Benefits, the Principal Amount will be increased by 10%, to a maximum of $25,000 i"i, at the time of the accident, the insured person was driving or riding in a vehicle and wearing a properly fasted seat belt. Due proof of seat belt use must be provided as part of the written proof of loss. "Vehicle" means a private passenger car, station wagon, van, or je1ep-type automobile. "Seat belt" means those belts that form a restraint system. In-Hospital Confinement Monthly Income For eligible injuries other than Loss of Life, and the insured person is hospital confined as in in-patient and is under the care of a legally qualified and registered physician or surgeon other than himself, the plan will pay for each full month, 1 % of the insured person's Principal Sum, subject to a maximum benefit of $2,500, or 1/30 1 h of such monthly benefit for each day of partial month, retroactive to the 1 1 full day of such confinement but not to exceed 365 days in the aggregate of each period of hospital confinement. "Hospital" as used herein means a legally constituted establishment which meets all of the following requirements: (1) operates primarily for the reception, care and treatment of sick, ailing or injured persons as in-patients; (2) provides 24 hour a day nursing service by registered or graduate nurses; (3) has a staff of one or more licensed physicians available at all times; (4) provides organized facilities of diagnosis and surgical facilities; and (5) is not primarily a clinic, nursing home or convalescent home or similar establishment nor, other than incidentally, a place for alcoholics or drug addicts. "In-Patient" means a person admitted to a hospital as a resident or bed-patient and who is provided at least one day's room and board by the hospital. Identification Benefit In the event accidental Loss of Life is sustained by he insured person not less than one hundred and fifty (150) kilometers from the insured person's normal place of residence and identification of the body by a member of the immediate family has been requested by the Police or a similar governmental authority, the plan will reimburse the reasonable expenses actually incurred by such member for: a) transportation by the most direct route to the city or town where the body is located; and

80 b) hotel accommodation in such city or town, subject to a maximum duration of 3 days. The reimbursement of such expenses incurred is subject to the accidental loss of life indemnity being subsequently payable in accordance with the terms of the plan following the identification of the body as the insured person. The maximum amount payable will not exceed $15,000 for all such expenses. Payment will not be made for other ordinary living, traveling or clothing expenses, and transportation must occur in a vehicle or device operated under a license for the conveyance of passengers for hire. Bereavement Benefit When injuries result in loss of life of the insured person within 365 days from the date of the accident, the plan will pay the reasonable and necessary expenses actually incurred by the spouse and dependent children of the insured person for us to six (6) sessions of grief counseling, by a professional counselor, subject to a maximum of $1,000. "Professional counselor" means the treatment or counseling by a therapist or counselor who is licensed, registered or certified to provide such treatment Cosmetic Disfigurement Benefit If, an insured person suffers a third degree burn in a non-occupational accident, the plan will pay a percentage of the principal sum depending on the area of the body which was burned according to the following table: Body Part (A) (B) (C) Area Maximum Maximum% of Classification Allowable % for Principal Sum Area Burned Payable Face, Neck, Head 11 9% 99% Hand & Forearm 5 4.5% 22.5% Either Upper Arm 3 4.5% 13.5% Torso 2 18% 36% (Front or Back) Either Thiqh 1 9% 9% Either Lower Leg 3 9% 27% (below knee) The maximum percent of the Principal Sum payable (C) is determined by multiplying the Area Classification (A) by the Maximum Allowable percent for Area Burned (B). In the event of 50% surface burn, the Maximum Allowable percent for Area Burned is reduced by 50%. This table only represents the maximum percent of the Principal

81 Sum payable for any one accident. If the insured suffers burns in more than one area as a result of any one accident, benefits will not exceed a maximum of $25,000. Hazards Insured Against The plan will pay the benefits described for any accident which happens while an insured person is covered by the plan. With respect to air travel, the insurance afforded shall apply to loss caused by or resulting from travel or flight in any aircraft, or any other device for aerial navigation, including boarding or alighting therefrom, except: a. while being used for any test or experimental purpose; or b. while the insured person is operating, learning to op19rate or serving as a member of the crew thereof; or c. while being operated by or for or under the direction of any military authority, other that transport type aircraft operated by the Canadian Armed Forces Air Transport Command or the similar air transport service of any other country; or d. any such aircraft or device which is owned or leased by or on behalf of the Company or any subsidiary or affiliate of the Company, or by an insured person or any member of his/her household; or e. while being used for fire fighting, pipeline inspection, power line inspection, aerial photography or exploration. Exposure and Disappearance Loss resulting form unavoidable exposure to the elements and arising out of hazards described above shall be covered to the extent of the benefits afforded an insured person. If the body of an insured person has not been found within one year of the disappearance, stranding, sinking, or wrecking of the conveyance in which the insured person was riding at the time of the accident, it shall be presumed, subject to all other conditions of the plan, that the insured plan suffered loss of life resulting from bodily injuries sustained in the accident and covered under this plan. Exclusions This plan does not cover loss caused by or resulting from any one or more of the following: a) Intentionally self-inflicted injuries, suicide or any attempt thereat, while sane or insane; b) Declared or undeclared war or any act thereof; c) Accident occurring while the insured person is serving on full-time active duty in the Armed Forces of any country or international authority; d) Travel or flight in any vehicle or device for aerial navigation; except to the extent such travel or flight is provided in the All Hazards Covered section. e) Any accident caused by the insured occurring while the insured is under the influence of drugs and/or alcohol.

82 f) Any act of aggression, participation in a felony or illegal use of drugs by the insured. Notice and Proof of Claim The Company or its agent, or a beneficiary entitled to make a claim or his agent, shall a) written notice of claim to the insurance company not later than thirty days from the date of the accident or the beginning of the disability i) By delivery thereof, or by sending it by registered mail, to the head office or chief agency of the insurance in the province, or ii) By delivery thereof to an authorized agent of the insurance company in the province, b) Within ninety days from the date of the accident for which the claim is made, furnish to the insurance company such proof of claim as is reasonably possible in the circumstances of the happening of the accident and the loss occasioned thereby, and c) If so required by the insurance company, furnish a certificate as to the cause and nature of the accident for which the claim is made and as to the duration of the disability caused thereby, from a medical practitioner legally qualified to practice in the province. Failure to Give Notice or Proof Failure to give notice of claim or furnish proof of claim within the time prescribed in this policy condition will not invalidate the claim if the notice or proof is given or furnished as soon as reasonably possible and in no event later than one year from the date of the accident or the beginning of the disability and if it is shown that it was reasonably possible to give notice or furnish proof within the time so prescribed.

83 - 26- ARTICLE VI PAYMENT OF GROUP LIFE INSURANCE AND ACCIDENTAL DEATH AND DISMEMBERMENT INSURANCE The following provisions are not applicable to the Supplemental Survivor Benefits provided by Article IV. {a) The amount of any valid life insurance or accidental death and dismemberment insurance claim for death shall be paid in one sum or in a fixed number of monthly or yearly installments for a period not exceeding 20 years. In the event lhat provision for payment of such claim by installments has not been made in writing by the employee prior to his death, then such provision may be designated by written request of the beneficiary last named by the employee. No installment settlement election shall be valid if such settlement would result in installment payments of less than $ each. (b) If the insurance is payable in installments and the beneficiary dies before all installments have been paid, the unpaid installments shall be commuted at any rate of interesl used in computing the amount of installment payments, and paid in one lump sum to the estate of the beneficiary unless a contingent beneficiary has been designated or unless otherwise provided in the election of an installment settlement.

84 ARTICLE VII PRIVILEGE OF CONVERTING TERM INSURANCE In the event of termination of employment or, termination of insurance because the employee is not eligible to continue insurance coverage by paying the required monthly contributions, the employee will be entitled to have a policy of life insurance issued by the Insurance Company without further evidence of insurability, provided that: (a) The amount of the policy will not exceed the amount of the employee's Term Insurance under the group policy at the time employment or insurance coverage terminated; (b) The policy will be upon one of the forms then customarily being issued by the Insurance Company, (other than term insurance which is limited to a one year convertible term plan); (c) The policy will require payment of the premium applicable to the class of risk to which the employee then belongs and to the form and amount of the policy at the employee's then attained age; (d} Written application for such a policy and payment of the first premium must be made by the employee within thirty-one days after employment or insurance coverage has terminated and such policy will become effective at the end of such thirty-one days if the employee is then living.

85 ARTICLE VIII OPTIONAL GROUP LIFE INSURANCE Section I - Eligibility Date An employee who is insured for the Life Insurance provided in accordance with Article II of the Group Ufe Insurance Program shall become eligible for Optional Group Life Insurance on the first day of the calendar month next following the month in which he acquires one year of seniority. The date that the employee becomes eligible for Optional Group Life Insurance shall be hereinafter referred to as the employee's eligibility date. Section 2 - Enrollment and Effective Dates The employee's Optional Group Life Insurance shall become effective as follows: (a) If the employee enrolls on or before his eligibility date, insurance becomes effective on the eligibility date. (b) If the employee enrolls during the 31-day period following his eligibility dale, insurance becomes effective on the first day of the calendar month next following the date of enrollment. (c) If the employee enrolls subsequent to the 31st day following his eligibility date, or if the employee becomes insured for Optional Group Life Insurance and later decides to enroll for a higher amount of insurance as set forth in Section 3 herein, the employee must furnish evidence satisfactory to the insurance company (i) of his good health, or (ii) that he has married or acquired children by birth or adoption during the 31-day period immediately prior to such enrollment. In either case, insurance shall become effective on the firs! day of the calendar month next following the date the insurance company approves such evidence, provided that in the case of (ii) above, the change in status is still in existence. In any event, for an employee to become insured initially or for a higher amount of insurance, he must be actively at work on the date the insurance would otherwise become effective. If the employee is not actively at work on such date, the insurance becomes effective on the date the employee returns to active work, provided he is then still eligible as set forth in Section I herein. If the employee becomes insured for Optional Group Life Insurance and later enrolls for a lower amount of insurance as set forth in Section 3 herein, the employee shall become insured for such lower amount of insurance on the first day of the calendar month next following the month for which he last contributed for the higher amount, whether or not he is then actively at work.

86 - 29- Section 3 - Amount of Insurance An employee may elect one of the following amounts of Optional Group Life Insurance: $10,000, $20,000, $30,000, $40,000 $50,000. The amount of Optional Group Life Insurance in force on account of an employee shall be reduced on the first day of the calendar month next following the month in which he attains age 66, and on each anniversary of such date, by 20% of the amount of Optional Group Life Insurance in force on the employee's 65th birthday. If, after his 65th birthday, an employee either enrolls initially for Optional Group Life Insurance or becomes insured for an increased or decreased amount of insurance, then, for the purpose of the reductions set forth in the preceding sentence, the amount of Optional Group Life Insurance shall be determined as though such initial amount or increased or decreased amount were in force on the employee's 65th birthday. No Optional Group Life Insurance is provided after the end of the month in which the employee attains age 70. Section 4 - Contributions The employee shall contribute the full cost of the Optional Group Life Insurance and contributions shall be payable monthly in advance. The required monthly contribution for each $1,000 of Optional Group Life Insurance is as set forth in the following schedule, which is subject to change: Employee's Age Less than Premium Smoker Non-Smoker $.08 $ When the employee attains a birthday which places him in a higher age bracket, the monthly contribution will change on the first day of the calendar month next following the month in which such birthday occurs. Section 5 - Payment of Benefits (a) The amount of Optional Group Life Insurance is payable to the beneficiary of record of the employee in the event of death from any cause while the employee is insured for Optional Group Life Insurance except that when the cause of death is caused by suicide, the employee must have been insured for at least twenty- four consecutive months; or in the case of an increase in the amount of an employee's insurance, no payment with respect to such increase shall be made for loss of life resulting from suicide unless the employee has

87 been insured with respect to such increase for at least twenty-four consecutive months. (b) At the written request of the beneficiary, Optional Group Life Insurance shall be paid either in a lump sum or in installments. No installment settlement election shall be valid if such settlement would result in installment payments of less than $ each. (c) If the insurance is payable in installments and the beneficiary dies before all installments have been paid, the unpaid installments shall be commuted at the rate of interest used in computing the amount of installment payments, and paid in one lump-sum to the estate of the beneficiary unless otherwise provided in the election of an installment settlement. (d) The employee's insurance certificate shall set forth the administrative provisions regarding the recording of beneficiary designations, changes of beneficiary and procedure for payment of insurance in case there is no beneficiary living at the death of the employee. (e) This insurance is term insurance without cash, loan or paid-up values. Section 6 - Cessation of Insurance Optional Group Life Insurance shall automatically cease on the earliest of the following: (a) The date the employee ceases to be insured for Life Insurance provided in accordance with Part IV, Article Ill. (b) If the employee fails to make a required contribution for Optional Group Life Insurance when due, the last day of the calendar month immediately preceding the calendar month for which such contribution was due. (c) The last clay of the calendar month in which the employee attains age 70. (d) The date of discontinuance of Optional Group Life Insurance under the Insurance Program. Section 7 - Conversion Privilege Upon written application made to the insurance company within 3'1 days after the date of cessation of the employee's Optional Group Life Insurance because of cessation, in accordance with Article V, of the employee's Life Insurance provided in accordance with the Group Life and Disability Insurance provisions, the employee shall be entitled to have an individual policy of Term Life Insurance only, issued by the insurance company without evidence of insurability. Such individual policy shall be upon one of the forms then customarily issued by the insurance company, and the premium for such individual policy shall be the premium applicable to the class of risk to which the employee belongs and to the form and amount of the individual policy at the employee's attained age at the date of issue of such individual policy. The amount of such individual policy shall be equal to (or, at the option of the

88 employee, less than) the amount of the employee's Optional Group Life Insurance on the date of cessation of such insurance. Any individual policy of Life Insurance so issued shall become effective at the end of the 31-day period during which application for such individual policy may be made. If, however, the employee dies during such 31-day period, the insurance company shall pay to his beneficiary of record, whether or not the employee shall have made application for such individual policy, the maximum amount of Life Insurance for which an individual policy could have been issued.

89 PART Ill HOSPITAL, SURGICAL AND MEDICAL BENEFITS ARTICLE I EFFECTIVE DATES The benefits provided by this Part Ill shall be payable with respect to services rendt;ired on or after the Effective Date of this Agreement, unless as specifically noted, to Employees and their Dependents, or Retired Employees and their Dependents (as provided in Section 3(a) of Article XI), or Surviving Spouses and their Dependents (as provided in Section 3(b) of Article XI), who are entitled to continue coverage as provided in Article II of Part IV, or who have acquired coverage prior to that date for themselves, or their Dependents, as the case may be, as provided in Article II of Part IV. Benefits of Articles Ill, IV, V, VI, VII, VIII, IX and X are subject to the limitations and exclusions contained in Article XI. After retiring from the Company, any employee hired on or after October 1, 2003 will not be eligible for any benefits under this Part Ill. Any reference to retired employees in this Part Ill will be only apply to persons who were hired prior to October 1, ARTICLE II ONTARIO HEAL TH INSURANCE PLAN The Company will pay, for full time employees in Ontario while insured in accordance with this Part Ill, the required monthly premiums to provide benefits of the Ontario Health Insurance Plan. Employees residing in a province other than Ontario will be provided with the government health insurance plan as applicable in the province in which they reside. ARTICLE Ill SEMI-PRIVATE HOSPITAL CARE The Company will pay, if an employee or eligible dependent has coverage in effect as provided under Article II of Part IV, when the expense is incurred, the required monthly premium to provide: (a) A benefit for hospital room and board charges for confinement due to nonoccupational injury or disease. Such benefit is payable in an amount equal to the hospital charge, not to exceed the hospital's daily applicable rate for room and board in semi-private accommodations reduced by the c:ash value of the room and board benefit payable under the Ontario Health Insurance Plan. (b) A benefit for hospital room and board charges for confinement in a convalescent or rehabilitation hospital, or convalescent or rehabilitation wing in a public general hospital, is subject to the same conditions as stated in (a) above.

90 (c) Where payments for hospitalization is provided outside Ontario as an insured service by a Provincial Health Insurance Plan the Plan shall pay, in addition to what is payable by the Provincial Health Insurance Plan, the equivalent of the normal average additional charges of hospitals in Ontario for furnishing such services in semi-private accommodation. (d) Payment for semi-private accommodation in sanatoria, mental hospitals and nursing homes is excluded and in hospitals for the chronically ill and chronic units of general hospitals is limited to $10.00 per day and to a maximum of 120 days in any continuous period of 365 days.

91 ARTICLE IV PRESCRIPTION DRUG BENEFITS Section 1 Prescription Drug Expenses will be payable to an employee or his dependent, while coverage is in effect with respect to such employee or dependent, as a result of sickness or injury and for conditions of pregnancy or obesity incurs expenses for covered prescription drugs and such prescription drugs are provided, upon the written order of a physician, by any pharmacy (including a hospital pharmacy), physician or any other person or organization legally licensed to dispense drugs. Section 2 a)payment of the actual charges for prescribed drugs shall be made for each prescription and each refill of a prescription less 35 and then $1.00 effective September 2, 2010 for current and future retired employees, however, for current employees the deductible will be $5.00 per prescription effective October 1, b)payment of dispensing fees will be capped at $9.00 per prescription effective September 2, 2010 for all current and future retired employees and current employees. c)to be acceptable, prescription drug receipts must show clearly the prescription number, cost of the prescription, name of drug, date of purchase and the name of the individual to whom the drugs were prescribed. d)generic drugs will automatically be substituted for name brand drugs except in those instances where the doctor has specifically indicated that no substitutes would be allowed. SecUon 3 - Benefits Under this Article IV shall not be payable for: (a) Patent medicines, vitamins and vitamin preparation (unless injected). (b) Charges for which benefits are otherwise provided under this Insurance Program Agreement. (c) Charges for the administration of prescription drugs and injectible insulin. (d) Any charge for therapeutic devices and appliances, hypodermic needles, syringes, bandages, and similar supplies; support garments and all other items and substances which are not prescription drugs. (e) Charges for medications furnished and covered under tlhe terms of any other group prepayment plan, whether such plan is on a provision of service or indemnity basis. (f) The following drug classes:

92 Skin creams I soaps/ skin emollients I skin cleansers I skin protectors I shampoo Laxatives I cleansing agents Oral vitamins Mouthwash I lozenges I toothpaste I cosmetics Formula I dietary foods and aids Electrolyte replacements I salt and sugar substitutes Section 4 - For Purposes of this Article IV: "Prescription Drugs" means only a drug as defined in Part VI of the Health Disciplines Act (Ontario) 1974 and "medicine" shall have a like meaning.

93 ARTICLEV DENTAL EXPENSE BENEFITS The following Dental Expense Benefits will be provided with respect to covered dental expenses. Section 1 Description of Benefits Dental Expense Benefits will be payable, subject to the conditions herein, if an employee or eligible dependent, while dental expense coverage is in effect with respect to such employee or dependent, incurs Covered Dental E)(penses. Section 2 Covered Dental Expenses Covered Dental Expenses are the usual charges of a dentist which an employee is required to pay for services and supplies which are necessary for treatment of a dental condition, but only to the extent that such services and supplies are customarily employed for treatment of that condition, and only if rendered in accordance with accepted standards of dental practice. Such exp,enses shall be only those incurred in connection with the following dental services which are performed, except as otherwise provided in Section Vl{b), by a licensed dentist and which are received while insurance is in force. Payments for Covered Dental Expenses shall be based upon the applicable percentage of the lesser of the dentist's usual charge for the service or of the fee specified for the service in the Ontario Dental Association Schedule of Fees, but only for the services set forth below, and not for any other services listed in such Schedule of Fees. Where fees for certain procedures are shown in such Schedule of Fees as "1.C." {Individual Consideration) payment will be made on the basis of the usual, reasonable and customary charges for such procedures. Provided, however, that in the event no Ontario Dental Association Schedule of Fees is in effect at the timie Covered Dental Expenses, as described in the first sentence of this paragraph are incurred, payments under this Section 11 shall be made on the basis of the usual, reasonable and customary charges for the service rendered or supply furnished. Payments for Covered Dental Expenses performed by a licensed denture therapist in accordance with Section VI (b) (ii) shall be based upon the applicable percentage of the lesser of the denture therapist's usual charge for the service or of the fee specified for the service in the Ontario fee schedule for Licensed Denture Therapists as defined in Section X, but only for the services set fo1ih below, and not for any other services listed in such fee schedule. Provided, however, that in the event no Ontario fee schedule for Licensed Denture Therapists is in effect at the time such Covered Dental Expenses are incurred, payments under!his Section II shall be made on the basis of the usual, reasonable and customary charges for the service rendered or supply furnished. (a) The following Covered Dental Expenses shall be included in the Maximum Benefit described in 111 and shall be paid at 100 per Gent of the dentist's usual charges but not more than the amount specified therefor in Ontario Dental Association Schedule of Fees: (1) Oral examinations including prophylaxis (scaling andl cleaning of teeth), but not more than one examination in any one period of nine (9) consecutive months.

94 (2) The excision of partially or completely unerupted or impacted teeth; (3) The excision of the tooth root without the extraction of the entire tooth; (4) Other incision or excision procedures on the gums and tissues of the mouth when not performed in connection with the extraction of or repair of teeth, but not treatment of periodontal and other diseases of the gums and tissue of the mouth covered by (b) (6) below; (5) Multiple extractions for bed-patients in hospitals when a concurrent hazardous medical condition exists; (6) Gingivectomy procedures, if performed in connection with treatment of diseased gums; (7) Topical application of fluoride; (8) Space maintainer that replace prematurely lost teeth for children under 19 years of age; and (9) Emergency palliative treatment. (10) Sealants for pits and fissures for permanent molars of children up to and including age 14. (b) The following Covered Dental Expenses shall be paid at 100 per cent of the dentist's usual charge or 100 per cent of the amount specified therefor in the Ontario Dental Association Schedule of Fees, whichever is less: (1) Dental x-rays, but not more than one full mouth x-ray in any period of thirtysix (36) consecutive months; and supplementary bitewing x-rays but not more than once in any period of nine consecutive months; and such other dental x-rays as are required in connection with the diagnosis of a specific condition requiring treatment. (2) Extractions. (3) Oral surgery. ( 4) Fillings. (5) General anesthetics administered in connection with oral surgery or other covered dental services. (6) Treatment of periodontal and other diseases of the gums and tissues of the mouth but not surgical procedures covered in (iv) above. (Bridgework required in connection with such treatment is subject to the 50% rate of payments). (7) Endodontic treatment, including root canal therapy. (8) Injection of antibiotic drugs by the attending dentist.

95 (9) Repair or recementing of crowns, inlays, bridgework or dentures, or relining of dlentures. (10) Inlays; gold fillings; crowns (including precision attachments for dentures). (c) The following Covered Dental Expenses shall be paid at (i) 50 per cent of the dentist's or denture lherapist's usual charge or (ii) 50 per cenl of the amount specified therefore in the Ontario Dental Association Schedule of Fees, or when applicable, in the Ontario fee schedule for Licensed Denture Therapists, whichever is less: (1) Initial installation of fixed bridgework (including inlays and crowns to form abutments). (2) Initial installation (including adjustments during the six-monlh period following installation) of partial or full removable dentures. (3) Replacement of existing partial or full removable denture or fixed bridgework by a new denture or by new bridgework, or the addition of teeth to an existing partial removable denture or to bridgework, but only if satisfactory evidence is presented that; (i) the replacement or addition of teeth is required to replace one or more teeth extracted after the existing denture or bridgework was installed; or (ii) the existing denture or bridgework was installed at least five years prior to its replacement (however, this five year rule does not apply to dentures or bridgework for which no benefit was paid under any Group Plan) and the existing denture or bridgework cannot be made serviceable; or (iii) the existing denture is an immediate temporary denture which cannot be made permanent and replacement by a permanent denture takes place within twelve monlhs from the date of installation of the immediate temporary denture. Normally dentures will be replaced by dentures but if achieving a professionally acceptable course of treatment requires bridgework, such bridgework will be a covered dental expense. (4) Orthodontic diagnostic procedures and treatment consisting of surgical therapy, appliance therapy, and functional/myofunctional therapy. Section 3 Maximum Benefit The maximum benefit payable for all Covered Dental Expenses incurred during any one calendar year (except those for orthodontic treatment and procedures listed in Section II (a) unless otherwise indicated) shall be $2, 100 for each individual effective October 1, For Covered Dental Expenses in connection with orthodonilics, inc:luding related oral examinations, surgery and extractions the maximum benefit payable shall be $2, 100 during the lifetime of each individual effective October 1, 2006.

96 - 39- Section 4 Predetermination of Benefits If a course of treatment can reasonably be expected to involve Covered Dental Expenses of $ or more, a description of the procedures to be performed and an estimate of the dentist's charges must be filed with the insurance carrier prior to the commencement of the course of treatment. The insurance carrier will notify the employee and the dentist of the benefits certified as payable based upon such course of treatment. In determining the amount of benefits payable, consideration will be given to alternate procedures, services, or courses of treatment that may be performed for the dental condition concerned in order to accomplish the desired result. The amount included as certified dental expenses will be the appropriate amount as provided in Sections II (a), (b) and (c), determined in accordance with the limitations set forth in Section VI. If a description of the procedures to be performed and an estimate of the dentist's charges are not submitted in advance, the insurance carrier reserves the right to make a determination of benefits payable taking into account alternate procedures, services or courses of treatment, based on accepted standards of dental practice. To the extent verification of Covered Dental Expenses cannot reasonably be made by the insurance carrier, the benefits for the course of treatment may be for a lesser amount than would otherwise have been payable. This predetermination requirement will not apply to courses of treatment under $500.00_or to emergency treatment, routine oral examinations, x-rays, prophylaxis and fluoride treatments. Section 5 Limitations (a) Restorative: (1) Gold, baked porcelain restorations, crowns and jackets. If a tooth can be restored with a material such as amalgam, payment of the applicable percentage of the charge for that procedure will be made toward the charge for another type of restoration selected by the patient and the dentist. The balance of the treatment charge remains the responsibility of the patient. (2) Reconstruction. Payment based on the applicable percentage will be made toward the cost of procedures necessary to eliminate oral disease and to replace missing teeth. Appliances or restorations necessary to increase vertical dimension or restore the occlusion are considered optional and their cost remains the responsibility of the patient. (b) Prosthodontics: (1) Partial Dentures. If a cast chrome or acrylic partial denture will restore the dental arch satisfactorily, payment of the applicable percentage of the cost of such procedure will be made toward a more elaborate or precision appliance that patient and dentist may choose to use, and the balance of the cost remains the responsibility of the patient.

97 (2) Complete Dentures. If, in the provision of complete denture services, the patient and dentist decide on personalized restorations or specialized techniques as opposed to standard procedures, payment of the applicable percentage of the cost of the standard denture services will be made toward such treatment and the balance of the cost remains the responsibility of the patient. (3) Replacement of Existing Dentures. Replacement of an existing denture will be a Covered Dental Expense only if the existing denture is unserviceable and cannot be made serviceable. Payment based on the applicable percentage will be made toward the cost of services which are necessary 'to render such appliances serviceable. Replacement of prosthodontic appliances will be a Covered Dental Expense only if at least five (5) years have elapsed since the date of the initial installation of that appliance under this Dental Expense Benefits Program, except as provided in Section II (c) (3) above. (c) Orthodontics: (1) If orthodontic treatment is terminated for any reason before completion, the obligations to pay benefits will cease with payment to the date of termination. If such services are resumed, benefits for the services to the extent remaining, shall be resumed. (2) The benefit payment for orthodontic services shall be only for months that coverage is in force. Secti:on 6 Exclusions Covered Dental Expenses do not include and no benefits are payable for: (a) Charges for services, treatments, appliances and supplies which are specified in the Ontario Dental Association Schedule of Fees but which are not set forth above. (b) Charges for treatment by other than a dentist, except that (i) scaling or cleaning of teeth and topical application of fluoride may be performed by a licensed dental hygienist if the treatment is rendered under the supervision and guidance of the dentist and (ii) a denture therapist licensed under the Ontario Denture Therapists Act, 1974 (or a comparable provider licensed in a province other than Ontario), may provide such services, appliances and supplies as are authorized by his license. (c) Charges for veneers or similar properties of crowns and panties placed on or replacing teeth, other than the ten upper and lower anterior teeth. (d) Charges for services or supplies that are cosmetic in nature, including charges for personalization or characterization of dentures. (e) Charges for prosthetic devices (including bridges), crowns, inlays and onlays and the fitting thereof which were ordered while the individual was not insured for Dental Expense Benefits or which were ordered while the individual was insured for Dental Expense Benefits but are finally installed or delivered to such individual more than sixty (60) days after termination of coverage.

98 (f) Charges for the replacement of a lost, missing, or stolen prosthetic device. (g) Charges for failure to keep a scheduled visit with the dentist. (h) Charges for replacement or repair of an orthodontic appliance. (i) Charges for services or supplies which are compensable under a Workplace Safety & Insurance Board or Employer's Liability Law. U) Charges for services rendered through a medical department, clinic, or similar facility provided or maintained by the patient's employer. (k) Charges for services or supplies for which no charge is made that the employee is legally obligated to pay or for which no charge would be made in the absence of dental expense coverage. (I) Charges for services or supplies which are not necessary, according to accepted standards of dental practices, or which are not recommended or approved by the attending dentist. (m) Charges for services or supplies which do not meet accepted standards of dental practice, including charges for services or supplies which are experimental in nature. (n) Charges for services or supplies received as a result of dental disease, defect or injury due to an act of war, declared or undeclared. (o) Charges for services or supplies from any governmental agency which are obtained by the individual without cost by compliance with laws or regulations enacted by any federal, provincial, municipal or other governmental body. (p) Charges for any duplicate prosthetic device or any other duplicate appliance. (q) Charges for any services to the extent for which benefits are payable under any health care program supported in whole or in part by funds of the federal government or any province or political subdivision thereof. (r) Charges for the completion of any insurance forms. (s) Charges for prescription drugs. (t) Charges for sealants (other than for pits and fissures as indicated in ll(a)(x)) and for oral hygiene and dietary instruction. (u) Charges for a plaque control program. (v) Charges for implantology. Section 7 Coordination of Benefits The insurance carrier shall follow the same procedures with respect to coordination of Dental Expense Benefits as are provided under Part Ill of the Insurance Program Agreement for coordination of hospital- surgical-medical benefits, except that other Dental Expense Benefits will be coordinated only if provided by either a group

99 -42 - dental plan or by a comprehensive medical plan providing dental benefits, to which, in either case, an employer contributes at least 50 per cent of the c:ost. Section 8 Subrogation In the event of any payment for Dental Expense Benefits, the insurance carrier shall be subrogated to all the employee's or dependent's rights of recovery therefore against any person or organization except against insurers on policies of insurance issued to and in the name of the employee, and the employee or dependent shall execute and deliver such instruments and papers and do whatever else is necessary to secure such rights. Section 9 Proof of Loss The insurance carrier reserves the right at its discretion to accept, or to require verification of, an alleged fact or assertion pertaining to any claim for Dental Expense Benefits. As part of the basis for determining benefits payable, the insur1mce carrier may require x-rays and other appropriate diagnostic and evaluative materials. Section 10 Definitions The term "dentist" means a legally licensed dentist practicing within the scope of his license. As used herein, the term "dentist" also includes a legally licensed physician authorized by his license to perform the particular dental services he has rendered. The term "denture therapist" means a denture therapist licensed under the Ontario Denture Therapists Act, 1974, (or a comparable provider licensed in a province other than Ontario), practicing within the scope of his license. The term "reasonable and customary charge" means the actual fe1e charged by a dentist or denture therapist for a service rendered or supply furnished but only to the extent that the fee is reasonable taking into consideration the following: (1) The usual fee which the individual dentist or denture therapist most frequently charges the majority of his patients for a service rendered or a supply furnished; and, (2) The prevailing range of fees charged in the same area by dentists or denture therapists of similar training and experience for the service rendered or supply furnished; and, (3) Unusual circumstances or complications requiring additional time, skill, and experience in connection with the particular dental service or procedure. The term "area" means a metropolitan area, a county or such greater areas as is necessary to obtain a representative cross section of dentists rendering such services or "furnishing such supplies. The term "course of treatment" means a planned program of one or more services or supplies, whether rendered by one or more dentists, for the treatment of a dental condition diagnosed by the attending dentist as a result of an oral examination. The course of treatment commences on the date a dentist first renders a service to correct or treat such diagnosed dental condition.

100 The term "Ontario Dental Association Schedule of Fees" means the Ontario Dental Association Schedule of Fees in effect in the year prior to the time the Covered Dental Expenses are incurred. Expenses incurred during 2001 will be covered by the 2000 ODA schedule; expenses incurred during 2002 will be covered by the 2001 ODA schedule, and so forth. The term "Ontario fee schedule for Licensed Denture Therapists" means the Schedule of Fees in effect in the year prior to the time the Covered Dental Expenses are incurred. Expenses incurred during 2001 will be covered by the 2000 schedule; expenses incurred during 2002 will be covered by the 2001 schedule, and so forth. The term "orthodontic treatment" means preventative and corrective treatment of all those dental irregularities which result from the anomalous growth and development of dentition and its related anatomic structures or as a result of accidental injury and which require repositioning of teeth to establish normal occlusion. The term "ordered" means, in the case of dentures, that impressions have been taken from which the denture will be prepared; and, in the case of fixed bridgework, restorative crowns, inlays and onlays, that the teeth which will serve as abutments or support or which are being restored have been fully prepared to receive, and impressions have been taken from which will be prepared the bridgework, crowns, inlays or onlays.

101 -44- Section 1 - Effective Date ARTICLE VI VISION EXPENSE BENEFITS PROGRAM Vision Expense Benefits will be payable, subject to the conditions l1erein. Section 2 - Coverage Vision Expense Benefits will be payable, subject to the conditions herein, if an employee or his dependent, while Vision Expense Coverage is in effect with respect to such employee or dependent incurs Covered Vision Expenses. Section 3 - Covered Expenses "Covered Vision Expenses" means the charges (as defined in Section 4) incurred for lenses and frames as described below. (1) Lenses, including, when prescribed, equivalent plastic lenses or tints equal to Rose Tint #1 or #2. (2) Contact lenses as prescribed by a physician or optometrist. (3) Dispensing service performed by the physician, optometrist or optician who, based on prescription, prepares or orders the eyeglasses or Gontact lenses selected, verifies the accuracy of the lenses and assures thalt the eyeglasses or contact lenses fit properly. (4) Frames adequate to hold lenses which are a Covered Vision Expense within the limits described in Section 4. (5) Repairs (not replacement) al the usual, reasonable and customary rates as determined by the Carrier. (6) Eye examinations every 24 months to a maximum of $75.00 per exam. (7) Laser surgery. Section 4 - Benefit Payment (a) The maximum benefit payable for services and materials as described in Section 3 of this Article VI shall be the actual charge but not more than $2'15.00 effective October 1, Section 5 - Limitations Frequency - If a covered person has received lenses or frames for which benefits were payable under the Plan, or under the Company's safety eyeg1lass program, benefits will be payable for subsequent lenses or frames only if received more than 24 months after receipt of the most recent previous lenses or frames for which benefits were payable under the Plan, provided, however, that lenses and frames

102 -45- received under the Company prescription safety glasses program for which no benefits were received under this Plan shall not be considered lenses and frames received under this Plan. An employee may utilize duplicate copies of the prescription for which a benefit is paid under this Plan to obtain lenses and frames under both the Plan and the Company's prescription safety glasses program if he is otherwise eligible under both and complies with the procedure of each. Section 6 - Exclusions Covered Vision Expense does not include and no benefits are payable for: (1) Charges for which benefits are otherwise provided under this Insurance Agreement and charges set forth in "Exclusions" applicable to all Articles; (2) Sunglasses to the extent the charge for such lenses exceeds the benefit amount for regular lenses as provided in Section 4 (tinted lenses with a tint other than the equivalent of Rose Tints #1 or #2 are considered to be sunglasses for the purpose of this exclusion); (3) Photosensitive or anti-reflective lenses to the extent the charge for such lenses exceeds the benefit amount for regular lenses as provided in Section 4; (4) Drugs or any other medication; (5) Procedures determined by the insurance company to be special or unusual, such as, but not limited to, orthoptics, vision training, subnormal vision aids, aniseikonic lenses and tonography; (6) Lenses or frames ordered: (a) before the covered person became eligible for coverage; or (b) after termination of coverage; (7) Lenses or frames ordered while insured, but delivered more than 60 days after coverage terminated; (8) Charges for lenses or frames which are not necessary, according to accepted standards of ophthalmic practice, or which are not ordered or prescribed by the attending physician or optometrist; (9) Charges for lenses or frames which do not meet accepted standards of ophthalmic practice, including charges for any such services or supplies which are experimental in nature; (10) Replacement of lenses or frames which are lost or broken unless at the time of such replacement the covered person is otherwise eligible under the frequency and prescription change limitations set forth in Section 5; and (11) Charges for the completion of any insurance forms. Section 7 - Coordination of Benefits

103 -46- Coordination of benefits will be administered under the same provisions applicable to hospital-surgical-medical coverage. Section 8 - Definitions As used herein: (1) "physician" means any licensed doctor of medicine legally qualified to practice medicine and who within the scope of his license performs vision testing examinations and prescribes lenses to improve visual acuity; (2) "optometrist" means any person licensed to practice optometry in the province in which the service is rendered; (3) "optician" means any person licensed in the province in which the service is rendered to supply eyeglasses prescribed by a physician or optometrist to improve visual acuity, to grind or mold the lenses or have them ground or molded according to prescription, to fit them into frames and to adjust the frames to fit the face; (4) "lenses'" means ophthalmic corrective lenses, either glass or plastic, ground or molded as prescribed by a physician or optometrist to be fitted into frames; (5) "contact lenses" means ophthalmic corrective lenses, either glass or plastic, ground or molded as prescribed by a physician or optometrist to be fitted directly to the patient's eyes; these are subject to limitations and exclusions applicable to lenses generally; (6) "frames" means standard eyeglass frames into which two lenses are fitted.

104 ARTICLE VII PROSTHETIC DEVICE EXPENSE BENEFITS 1. Prosthetic Device Expense Benefits shall be payable, subject to the conditions herein, if an employee or eligible dependent has coverage in effect when the expense is incurred. 2. If a prosthetic device is received as a result of an injury or sickness on the order of a physician (M.D. or D.O.) when payment for such device is not otherwise covered under the Plan, payment will be made for the actual amount charged for such device to the extent such charge does not exceed the usual charge by the physician, group or other entity furnishing the device and is not in excess of the general level of charges made by others providing similar devices within the area. Payment may be made directly to the supplier of such device. 3. Where applicable, application for coverage under the Ontario Assistive Devices Program must be made before benefits under this Article VII become payable. 4. "Prosthetic Device" means a device which replaces all or part of a body organ (including contiguous tissue) or a diseased, malformed, or injured portion of the body or replaces all or part of the function of a permanently inoperative or malfunctioning bodily organ, or portion of the body, including, but not limited to, leg, arm, back and neck braces, trusses and artificial legs, arms, eyes, and terminal devices such as hand hooks furnished on the order of a physician. Replacement of unusable prosthetic devices or repairs of these devices when furnished on a physician's (M.D. or D.O.) order, and supplies and equipment not having any use other than in connection with the use of the prosthetic device and which are necessary for the effective use of the prosthetic device will also be covered. The term "Prosthetic Device" includes post-surgical lenses customarily used during convalescence from eye surgery in which the lens of the eye was removed, or used to replace a congenitally absent lens of the eye. In addition, combinations of prosthetic lenses are covered when determined to be medically necessary by a physician to restore essentially the vision provided by the crystalline lens of the eye. Prosthetic Device shall also include wigs or hairpieces prescribed by a physician when hair loss is caused by chemotherapy or radiation treatment, alopecia (excluding the following natural non-medical conditions causing hair loss: luminaris, male pattern baldness, prematura, senilis and totalis), hypothyroidism, traumatic scald and scalp fungal infection. Exclusions Dentures, other dental appliances, hearing aids, glasses and contact lenses prescribed to correct visual defects are excluded. Also excluded are non-durable items such as support garments, special shoes (unless an integral part of a leg brace), and elastic support bandages.

105 -48- ARTICLE VIII DURABLE MEDICAL EQUIPMENT EXPENSE BENEFITS 1. Durable Medical Equipment Expense Benefits shall be payable, subject to the conditions herein, if an employee or eligible dependent has coverage in effect when the expense is incurred. 2. If Durable Medical Equipment is received by an employee or dependent on the order of a physician (M.D. or D.O.) for use when not confined as an in-patient in a hospital, convalescent facility, or any other institution for the treatment of injury or sickness or to improve the functioning of a malformed body member when payment for such equipment is not otherwise provided for under this Plan, payment will be made for the actual amounts charged for the rental of such equipment to the extent such charges do not exceed the usual charge by the physician, group or other entity furnishing the equipment, and is not in excess of the general level of charges made by others providing similar equipment within the area. Payment may be made directly to the supplier of the equipment. The insurance carrier or Company may approve the purchase of such equipment if it can reasonably be assumed that the duration of need is such that the rental price would exceed the purchase price, or said item cannot be made available on a rental basis. 3. Where applicable, application for coverage under the Ontario Assistive Devices Program must be made before benefits under this Article VIII become payable. 4. "Durable Medical Equipment" means medical equipment which (1) can withstand repeated use, (2) is primarily and customarily used to serve a medical purpose, (3) generally is not useful to a person in the absence of illness or injury, and (4) is appropriate for medical treatment in the home. Durable Medical Equipment includes, but is not limited to such items used for treatment as an: iron lung, oxygen tents, hospital-type beds and equipment, wheelchairs, crutches, canes, walkers, inhalators, traction equipment, nebulizers and suction machines, toilet aids, circulatory aids and neuromuscular stimulants Rental of prescribed electromagnetic coil bone growth stimulator Home glucose monitors (glucometers, dextrometers) prescribed when there is evidence of poor diabetic control Rental of prescribed electric power scooter in lieu of a wheelchair Diapers (including cloth) when prescribed by a Physician and are medically necessary, age 21 years and over Portable toilets for covered individuals who otherwise qualified for benefils for a commode Raised toilet seats for all medical conditions Soft casts to a maximum of $30 per cast Reusable underpads for wheelchairs to a maximum of 6 per year

106 -49 - One pair of custom made corrective footwear per year (excluding off-the-shelf orthopedic foot wear) to a maximum of $400 per year Orthotic Device to maximum of $350 per year Geriatric Chair on a one time only basis to a maximum of $2,000 Bathtub Rails to a lifetime maximum of $100 Insulin Pressure Injection devices are included as Durable Medical Equipment and reimbursement is limited to a $200 maximum. 5. "Durable Medical Equipment" does not include (but is not limited to): dentures; hearing aids; eyeglasses; contact lenses equipment which is primarily and customarily used for non-medical purposes such as heat lamps; air conditioners and other devices and equipment used for environmental control or to enhance the environmental setting in which the patient is placed, such as room heaters, humidifiers, dehumidifiers, and other equipment which basically serve comfort or convenience; special pad or mattress to prevent decubitus ulcers, (except in case of advanced neurological disorders) and bed bath types of equipment which basically are utilized for hygienic purposes; prosthetic devices; other items or devices which do not stand repeated use such as elastic stockings, face masks, irrigating kits, ace bandages, off-the-shelf orthopedic shoes, (or other devices that do not serve a meaningful and necessary therapeutic purpose in the care and treatment of the patient); arch supports benefits will not be paid for special features or equipment such as motor drive beds and wheelchairs requested by the patient for personal comfort or convenience unless medically necessary 6. Chiropractor/Physiotherapy/Massage Therapy Reimbursement will be made for chiropractic treatment, physiotherapy, or massage therapy when done on the order of a physician (M.D. or D.O.), for up to a combined maximum of $ per calendar year. 7. PSA Testing (Prostate Specific Antigen) Reimbursement will be made annually for a PSA test when done on the order of a physician.

107 ARTICLE IX OUT-OF-PROVINCE HOSPITAL, SURGICAL ANO MEDICAL EXPENSE BENEFITS Out-of-Province hospital, surgical, and medical expense benefits shall be payable if an employee or eligible dependent has coverage in effect as provided under Article II of Part IV. Covered benefits are medical-surgical or hospital services outside the province of Ontario because of (i) accidental injury or emergency, or (ii) referral by his attending physician, and upon submission of satisfactory proof that such services were received only because of (i) or (ii) and that the fee charged for any such covered services exceeded the amount scheduled or payable for such services under the Ontario Health Insurance Plan. (1) "Covered services" referred to in the paragraph above are those: (a) medical.-surgical services for which a fee is scheduled under the fee schedule under the Ontario Health Insurance Plan, and (b) hospital services for which a benefit is provided under the ward coverage of the Ontario Health Insurance Plan. No other services shall be "covered" services. (2) Paymenlt towards covered medical-surgical expenses incurred shall be limited to the fee charged for such services less the fee scheduled (in Ontario this means the fee scheduled by the Ontario Medical Association) under the Ontario Health Insurance Plan for the covered service received, but only to the extent that the fee charged is reasonable and customary in the area where covered services are received. Payment towards covered hospital expenses incurred shall be limited by the hospital's charge for covered services in semi- private accommodation less the sum of the payment made towards the expense of accommodation by the Ontario Health Insurance Plan and the Semi-Private Hospital! Care Plan as described in Article Ill of this Part Ill. No payment towards any expense incurred for private accommodation will be made. (3) Payment towards "out-of-province" medical-surgical and hospital services will be made subsequent to payment by the Ontario Health Insurance Plan. Such subsequent payment is contingent upon prior payment by the Ontario Health Insurance Plan toward any item of covered service for which payment is requested. (4) Except as may be otherwise specifically provided, benefits provided are subject to all exclusions, exceptions, limitations, conditions and proviisions contained in any contract under which payment is first made towards services covered hereunder. When it is medically necessary for a covered patient to travel by an air ambulance from a location in North America to the Patient's province of residence, the subscriber will be reimbursed for the amount charg1ed to the patient and, when necessary, for the air fare of an accompanying

108 medical attendant as well as the air fare of an accompanying spouse provided that: (1) there is a demonstrated need for the patient to be confined to a stretcher or for a medical attendant to accompany the patient during the journey, (2) the patient is admitted directly to a hospital in the patient's province of residence, (3) the patient's Provincial Government Health Insurance Plan makes a payment towards the cost, (4) medical reports or certificates from both the dispatching and receiving physicians are submitted, and, (5) proof of payment including air ticket vouchers or air charter invoices are submitted.

109 ARTICLEX LAND AMBULANCE when it is medically essential for a covered patient's travel by a licensed land ambulance service (municipal, hospital, private or volunteer) 19ither in the patient's province of residence or out of the patient's provinc:e of residence and O.H.l.P. makes a payment towards the cost, a benefit will be provided for the patient co- payment charge, if any, up to a maximum of $50.00 over and above any amount paid by O.H.l.P.

110 Section 1 - Description of Benefits ARTICLE XI HEARING AID EXPENSE BENEFIT PROGRAM Hearing Aid Expense Benefits will be payable subject to the conditions herein, if an employee or dependent, while Hearing Aid Benefit Coverage is in effect with respect to such employee or dependent, incurs Covered Hearing Aid Expenses. Section 2 - Covered Hearing Aid Expenses "Covered Hearing Aid Expense" means the charges (as defined in Section 3) incurred for hearing aid as described below. Hearing Aid means an electronic device worn on the person for the purpose of amplifying sound and assisting the physiologic process of hearing and includes an ear mold, if necessary, but only if the hearing aid is purchased as a result of a written recommendation by a physician or audiologist based on the most recent audiometric examination and hearing aid evaluation. Section 3 - Benefit Payment The maximum benefit payable for services and materials as described in Section 2 shall be the actual charges but not more than $ The maximum benefit for repairs will be limited to $ every 24 months. This does not include battery replacement or repairs that should be covered by warranty. Section 4 - Limitations (I) Quantity The number of hearing aids will be limited to one per ear per insured employee or covered dependent. (2) Frequency If a covered person has received a hearing aid for which benefits were paid under the Plan, benefits will be payable for each subsequent hearing aid only if received more than 36 months after receipt of the most recent previous hearing aid for which benefits were payable under the Plan. (3) Replacement Replacement of the hearing aid will be covered if the hearing aid has been in use for at least three years and such replacement is made on the written recommendation of a physician or audiologist. Section 5 - Exclusions (1) Charges for services or supplies which are covered in whole or in part under any other portion of the Medical Expense Benefits plan or under any other Medical Expense Benefits or Hearing Aid Benefits provided by the employer. (2) Medical examination, audiometric examinations or hearing aid evaluation tests.

111 (3) Medical or surgical treatment. (4) Drugs or other medication. (5) Hearing aids provided under any applicable Workplace Safety & Insurance Board Law. (6) Hearing Aids ordered: (a) before the covered person became eligible for coverage; or (b) after termination of coverage (7) Hearing aids ordered while insured but delivered more than 60 days after termination of coverage. (8) Charges for hearing aids for which no charge is made to the covered person or for which no charge would be made in the absence of Hearing Aid Expense Benefits coverage. (9) Charges for hearing aids which are not necessary, according to professionally accepted standards of practice, or which are not recommended or approved by the Physician. (10) Charges for hearing aids that do not meet professionally accepted standards of practice, including charges for any such services or supplies that are experimental in nature. (11) Charges for hearing aids received as a result of ear disease, defect or injury due to an act of war, declared or undeclared. (12) Charges for hearing aids provided by any governmental agency that are obtained by the covered person without cost by compliance with laws or regulations enacted by a federal, provincial, municipal or other government body. (13) Charges for hearing aids to the extent benefits therefor are payable under any health care program supported in whole or in part by funds of the federal government or any province or political sub-division thereof. (14) Replacement of hearing aids that are lost, broken or slolen unless at the time of such replacement the covered person is otherwise eligible under the frequency limitation set forth herein. (15) Charges for the completion of any insurance form. (16) Eyeglass-type hearing aids, to the extent the charge for such hearing aid exceeds the covered hearing aid expense for one hearing aid. Section 6 - Coordination of Benefits

112 - 55- Coordination of benefits will be administered under the same provisions applicable to hospital-surgical-medical coverage as outlined in Part Ill, Article XI Section 4. Section 7 - Definition (1) "Physician" means any licensed doctor of medicine legally qualified to practice medicine and is certified as an otologist or otolaryngologist who is board certified or eligible in his specialty in compliance with the standards established by his respective professional sanctioning body and who performs a medical examination of the ear and determines whether the patient has a loss of hearing acuity and whether the loss can be compensated for by a hearing aid. (2) "Audiologist" means any person who: (a) possesses a masters or doctorate degree in audiology or speech pathology from an accredited university, (b) possesses a Certificate of Clinical Competence in Audiology from the American Speech-Language-Hearing Association, and (c) is qualified in the province in which the service is provided to conduct an audiometric examination and hearing aid evaluation test for the purposes of measuring hearing acuity and determining and prescribing the type of hearing aid that would best improve the covered person's loss of hearing acuity. (3) "Ear Mold" means a device of soft rubber, plastic, or non-allergenic material which may be vented or non-vented that individually is fitted to the external auditory canal and pinna of the patient.

113 Section 1 - Payment of Benefits ARTICLE XII GENERAL PROVISIONS (a) All benefits provided under this Part Ill shall be paid upon receipt of satisfactory proof covering the occurrence, character, and extent of the loss for which claim is made. (b) Affirmative written proof of claim must be furnished to the insurance company before the expiration of ninety (90) days after the end of the calendar month in which the particular expense with respect to which claim is made is incurred. Failure to furnish proof within the time provided shall not invalidate or reduce any claim if it shall be shown not to have been reasonably possible or practicable to furnish such proof within such time. No action at law or in equity shall be brought to recover under this Part Ill prior to the expiration of sixty (60) days after written proof of claim has been furnished in accordance with the above requirements of this Section, nor shall such action be brought at all unless brought within three (3) years from the expiration of the time stated in this Section. (c) The Company or the insurance company reserves the right in ilts own discretion to accept, or to require verification of, any alleged fact or assertion pertaining to any claim under this Part Ill. Section 2 - Exclusions - Applicable to All Articles of Part Ill (a) In addition to any exclusion elsewhere stated, no benefits are payable for charges for the following: (1) Services or supplies which are not necessary for diagnosis or treatment of disease, pregnancy or injury; (2) Confinements, services or supplies for industrial injury or disease for which the individual is entitled to any benefits under <1ny Woirkplace Safety & Insurance Board Law; (3) Services or supplies from any government agency which ar,e, or to the extent such services or supplies may be, obtained without cost to the individual by compliance with laws or regulations enacted by any federal, provincial, municipal, or other governmental body; (4) Services or supplies to the extent covered under any hospital care coverage, or similar surgical-medical coverage, other than this Plan, to which the Company contributes; (5) Confinements, services or supplies which are not recommended and approved by a physician; (6) Services or supplies rendered to an individual prior to the date coverage on his account becomes effective; (7) Services for which no charge is made that the employee is!legally obligated to pay;

114 (8) Confinements, services, or supplies which are rendered where a contributory cause was the individual's commission of a felony. Section 3 - Coverage for Retired Employees and Surviving Spouses (a) Retired employees who were hired prior to October 1, 2003 (not including a former employee entitled to or receiving a deferred pension) receiving a pension under the Non-Contributory Retirement Plan will continue to be covered under this Part Ill. Employees who were hired on or after October 1, 2003 will not be eligible for coverage under this Part Ill when they retire. Coverage will be provided without cost to retired employees for (i) himself only, (ii) himself and his spouse, or (iii) himself, his spouse, if any, and his eligible children. (b) The Company will provide, the coverage of described in Section 3(a) above, to any surviving spouse as described in (b) (1 ), (2), (3) or (4) below (including coverage for children who would have been eligible for coverage through the employee or retired employee had he not deceased). (1) A surviving spouse receiving a pension benefit (or is eligible to receive a pension except for receipt of survivor income benefits under Part II) from the Non-Contributory Retirement Plan (excluding the surviving spouse of a former employee who was receiving a deferred pension), (2) A surviving spouse of a deceased retired employee (excluding the surviving spouse of a former employee receiving a deferred pension) who was receiving a pension benefit at the time of his death. (3) The surviving spouse of an employee at work on or after January 1, 1981, who dies as the result of a work incurred accident or illness, including children who would have been eligible for coverage through the employee had he not deceased. Coverage will cease on the first to occur of the surviving spouse's remarriage or death. (4) The surviving spouse of an employee at work on or after January 1, 1981, who, at the time of an employee's death which was not the result of a work incurred accident or illness, was age 45 or older (or whose age at the time of the employee's death plus the deceased employee's years of credited service total 55 or more) will be provided with six months free coverage. Section 4 - Coordination of Benefits (1) Definitions (a) "Plan" means any plan providing benefits for, or services in the form of, or by reason of, hospital care, or treatment, or treatments by physicians or services or supplies provided by other providers which benefits or services are provided by group, blanket or franchise insurance coverage, group practice, individual practice and other prepayment coverage on a group basis, including coverage under a labour-

115 - 58- management trustee plan, union welfare plan, employer organization plan, or employee benefit organization plan. The term "Plan" shall be construed separately with respect to each policy, contract or other arrangement for benefits or ser{ices, and separately with respect to that portion of any such policy, contract or other arrangement which reserves the right to take the benefits or services of other Plans into consideration in determining its benefits, and that portion which does not. "This Plan" means this Part Ill. (b) "Allowable Expense" means any necessary, reasonable and customary item of expense for service covered in whole or in part under any Plan in which the individual covered under this Plan is enrolled. When a Plan provides benefits in the form of services, the reasonable cash value of each service rendered shall be deemed to be a benefit paid. (c) "Claim Determination Period" means calendar year, provided, however, that any such period shall not commence before or extend beyond the period of the individual's coverage under this Plan. (2) Payment of Allowable Expenses Notwithstanding the other provisions of this Plan, in no case will payment be made of an amount which, when added to the amount paid by any other Plan, exceeds the physician's reasonable and customary charge as set forth in this Plan. (3) Effect on Benefits (a) This provision shall apply in determining the benefits, as to an individual covered under this Plan, for any claim determination period if, for the allowable expenses incurred on account of such individual during such period, the sum of (1) the benefits that would be payable under this Plan in the absence of this provision, and (2) the benefits that would be payable under all other Plans in the absence therein of contractual terms of similar purpose to this provision would exceed such allowable expenses. (b) As to any claim determination period with respect to which this provision is applicable, the benefits that would be payable under this Plan in the absence of this provision for the allowable expenses incurred on account of such individual during such claim determination period shall be reduced to the extent necessary so that the sum of such reduced benefits and all the benefits payable for such allowable expenses under all other Plans, except as provided in Sub-section (3)(c) of this Section 4, shall not exceed the total of such allowable expenses. Benefits payable under another Plan include the amounts that would have been payable in benefits had claim been duly made therefor.

116 (c) If: (1) another Plan which is involved in Sub-section (3)(b) of this Section 4 and which contains a provision coordinating its benefits with those of this Plan would, according to its rules, determine its benefits after the benefits of this Plan have been determined, and (2) the rules set forth in Sub-section (3) (d) of this Section 4 would require this Plan to determine its benefits before such other Plan, then the benefits of such other Plan will be ignored for the purpose of determining the benefits under this Plan. (d) For the purpose of Sub-section (3)(c) of this Section 4, the rules establishing the order of benefit determination are: (1) A plan with no coordination of benefits provision will pay its benefits before a plan which contains such a provision; (2) A plan which covers an individual other than as a dependent will pay its benefits before a plan which covers the individual as a dependent; (3) A plan which covers an individual as a dependent of the covered person with the earliest day and month of birth in the calendar year will pay its benefits first. (4) Where the above do not establish the order of payment, the benefits shall be pro-rated between or amongst the plans in proportion to the amounts that would have been paid under each plan had there been coverage by just that plan. (e) If the individual covered under this Plan is also covered under another Plan which is a group contract underwritten by the insurance company, other than a contract which provides cash benefits to the individual, the rules set forth in Sub-section (d) of this Section 4 establishing the order of benefits determination shall be applicable whether or not such other group contract contains a provision coordinating its benefits with those of this Plan. (f) Upon receipt of satisfactory evidence that an individual covered under this Plan contributes, with respect to the month in which expense for covered services was incurred, 50% or more of the monthly premium or subscription charge for coverage under another Plan, the benefits of such other Plan will not be considered for the purpose of determining the benefits under this Plan. (4) Right to Receive and Release Necessary Information For the purposes of determining the applicability, and implementing the terms, of this provision of this Plan or any provision of similar purpose of any other Plan, the insurance company or the Company may, without the consent of or notice to any person, release to or obtain from any insurance company or other organization or person any information, with respect to any individual covered under this Plan, which it deems to be necessary for such purposes. Any individual claiming benefits under this Plan shall furnish to the insurance

117 company or the Company such information as may be necessary to implement this provision. (5) Facility of Payment Whenever payments which should have been made under this Plan in accordance with this provision have been made under any other Plan, the insurance company or the Company shall have the right, exercisable alone and in its sole discretion, to pay over to any organizations making such other payments any amounts it shall determine to be warranted in order to satisfy the intent of this provision, and amounts so paid shall be deemed to be benefits paid under this Plan and, to the extent of such payments for covered services, the insurance company or the Company shall be fully discharged from liability. (6) Right of Recovery (a) Whenever payments have been made by the insurance company or the Company with respect to covered services in a total amount, at any time, in excess of the maximum amount of payment necessary at that time to satisfy the intent of this provision, irrespective of to whom paid, the insurance company or the Company shall have the right to recover such payments, to the extent of such excess, from among one or more of the following as it shall determine: any person to, for or with respect to whom such payments were made, any insurance companies, and any other organizations. (b) The employee, for himself or herself and on behalf of his or her dependents, shall upon request, execute and deliver such instruments and papers as may be required to do what ever else is necessary to secure such right to the insurance company or the Company. Section 5 - Recovery of Benefits In the event!hat a benefit payment is made under Part Ill, which is in excess of the benefit payment which should have been provided, the employee shall be obligated to repay, in cash, the amount of such overpayment, upon appropriate notice of the amount to be repaid. If such repayment is not made within 60 days, the Company is authorized to deduct or have deducted, the amounts to be repaid from any amounts payable to the employee by or on behalf of the Company, including wages. The amount deducted from each pay cheque or benefit cheque shall be limited to $50.00 or the amount permitted by law, whichever is less. In any case where any overpayment cannot be recovered from the employee, sucl1 overpayment may be recovered from the individual to whom or with respect to whom such overpayment was made. However, no repayment will be required unless notice is given to the employee by!he Company or the insurance company within 60 days from the date the Company or the insurance company had knowledge of the overpayment except that no such time limitation shall be applicable in cases of fraud or willful misrepresentation.

118 PART IV GENERAL PROVISIONS RELATING TO PARTS I THROUGH Ill ARTICLE I DEFINITIONS Wherever the following terms are used in Parts I through Ill, they shall have the following meaning unless specifically defined otherwise. (1) The term "Base Hourly Rate" shall include only earnings for hours worked and shall exclude overtime, premium pay,, shift bonus, and cost-of-living allowance and shall be an employee's pay rate in effect as of the date Base Hourly Rate is being determined. (2) The term "Full-Time Employee" means any employee who is employed to work a normal and regular schedule of hours whether or not temporarily working on a Part-Time basis. (3) The term "Part-Time Employee" means any employee hired to work less than the normal and regular schedule of hours worked by regular full-time employees. (4) The term "Hospital" means an institution or subdivision thereof which meets every one of the following tests: (a) It is primarily and continuously engaged in providing for compensation from its patients and on an in-patient basis, a full range of diagnostic and therapeutic facilities for the surgical and medical diagnosis, treatment, and care of injured and acutely sick persons, by or under the supervision of a staff of Physicians; (b) It continuously provides 24 hour a day nursing service by or under the supervision of registered graduate nurses (R.N.); (c) It is not, other than incidentally, a place for rest, a place for the aged, a place for drug addicts, a place for alcoholics or custodial care or a nursing home. (5) The term "Physician" means one who is duly licensed by an appropriate governmental authority to prescribe and administer drugs and perform surgery. (6) The term "Dependent", as it applies to Part Ill means an employee's and retired employee's spouse and children under 25 years of age, or at any age if totally and permanently disabled, who are unmarried, legally residing with and dependent on the employee or retired employee and must either qualify in the current year as a dependent under the Canadian Income Tax Act for establishing the employee's or retired employee's withholding tax exemptions or have been reported as a dependent on the employee's or retired employee's most recent income tax return. Notwithstanding anything herein to

119 - 62- the contrary, however, the term "Dependent" does not includ13 any person who is otherwise covered under any Plan providing similar benefits to which the Company contriloutes, or any person in the military or similar forces of any country or of any subdivision thereof. (7) The term "spouse" as used in Part Ill of this Agreement means the person to whom the employee or retired employee is legally married; or spouse shall also mean a person who is, and who has been for an immediately preceding continuous period of at least two years, cohabiting and residing with the employee or retired employee and publicly represented by the employee or retired employee as his or her spouse. (8) The term "Workplace Safety & Insurance Board Law", in addition to any law bearing such designation, also means any occupational diseases act, or any similar employer's liability law, federal or provincial. (9) The term "Credited Service" means credited pension service under the Noncontributory Retirement Plan for employees hired prior to October 1, For employees hired on or after October 1, 2003 this will mean continuous service beginning on the date of their Full Time employment with the Company. ARTICLE II ELIGIBILITY FOR COVERAGE Section 1 - Eligibility to Continue Coverage (a) Each employee who was covered under Parts I and II of the Insurance Program Agreement as constituted on the day before the effective date of this Agreement and whose insurance benefits under Parts I and Ill would have been in force on the effective date of this Agreement, had!his Agreement not been adopted, shall become covered for the benefits under this Agreement on the effective date of this Agreement, unless otherwise specified in the applicable Part, or this Part, in which case the date specified therein shall control. (b) Each employee who was covered under Part Ill of the Insurance Program Agreement, as constituted on the day before the effective date of this Agreement, ancl whose insurance benefits under Part Ill would have been in force on the effective date of this Agreement had this Agreement not been adopted, shall become covered for the benefits under this Agreement on the effective date of this Agreement, unless otherwise specified in the applicable Part, or this Part, in which case the date specified therein shall control. Section 2 - Eligible Employees All full-time employees who meet the requirements of this Article are eligible for coverage under each Part. Section 3 - Required Information and Coverage for Employees

120 In order to provide necessary information concerning beneficiary designations, dependents, and necessary authorization of payments and contributions, each covered employee or retired employee must supply such information on forms supplied by the Company. In the event an employee has failed to supply the required information prior to the date a claim is incurred, no benefit will be paid until the required information has been supplied and verified. Each present and future full-time employee, retired employee and surviving spouse will be required to file the required information. New employees will be required to file such information on or before the first day of the month next following the month in which employment commences. An employee hired prior to the effective date of this Agreement shall become eligible: (1) for the Group Life Insurance Program, Part II, on the first day of the month next following the month in which employment commences. (2) for the Disability Benefits Program, Part I, and for the coverage under Part Ill (except Dental and Hearing Aid) on the first day of the third month following the month in which employment commences, subject to the provisions of the applicable Plans. (3) for the Dental and Hearing Aid Plans under Part Ill on the first day of the month following the month in which the employee is actively at work after he acquires one year of seniority. An employee hired on or after the effective date of this Agreement shall become eligible: (I) for the Group Life Insurance Program, Part II, on the first day of the month next following the month in which employment commences, subject to the provisions of the applicable plans. (2) for the Disability Benefits Program, Part I, and for coverage under Part Ill (except Dental, Vision and Hearing Aid) on the first day of the third month following the month in which employment commences, subject to the provisions of the applicable Plans. (3) for Dental, Vision, and Hearing Aid Plans under Part Ill on the first day of the month following the month in which the employee is actively at work after he acquires one year of seniority. Coverage for dependents under Part Ill will commence on the date of the employee's coverage or the date such person qualifies as a dependent, if later. Section 4 - Effective Date of Insurance (a) If an employee is both disabled (i.e. ill or injured) and away from work, or is on a layoff or leave of absence, on the date any coverage under this Agreement would otherwise become effective for him (including changes in coverage which would otherwise become effective on the effective date of this Insurance

121 Program), lhe effective date of such coverage will be deferred until the date he returns to active work. (b) All employees who are covered or receiving or entitled to benefits, or having rights under the coverages in effect prior to the applicable effective date of this Insurance Program who are not eligible to become covered thereby on the applicable effective date of this Insurance Program, shall, except as otherwise provided in Section 1 (b) of this Article II, retain such status, benefits, or rights in accordance with the conditions, provisions, and limitations of such coverages so long as they remain ineligible to become covered by this Insurance Program. Section 5 - Changes in Amount of Insurance Amounts of disability benefits and group life insurance shall be redetermined on October 1, 1991, and each October 1 thereafter in accordance the Table of Benefits set out in the Agreement Section. Each increase or decrease in the amount of an employee's disability benefits or group life insurance (except for the reduction formula provided in Part II, Article Ill, Section 1) due to an increase or decrease in Base Hourly Rate shall become effective automatically on the dates specified above; provided, however, that if an employee is both disabled (i.e. ill or injured) and away from work, or in on a layoff or leave of absence, on the date his insurance would otherwise be ingreased or decreased, the effective date of the increase or decrease in insurance shall be deferred until relurn to active work. If an employee receives a retroactive change in his rate of pay, which otherwise would have been affected insurance coverage as determined on the dates specified above, the change in coverage shall become effective on the date the decision is made to change his rate of pay. Section 6 - No Duplication of Coverage Anything to the contrary notwithstanding, if an individual is employed in one or more capacities, he shall not be eligible for multiple coverage under this Agreement, but shall be treated the same as if he were employed in a single capacity; the amount of insurance for which any such individual shall be eligible shall, under no circumstances, exceed lhe amount which would apply if he were employed in a single capacity. Section 7 - Change in Family Status If an employee has Employee Coverage only and thereafter marries or otherwise acquires a Dependent or an additional Dependent, coverage for such Dependent under Part Ill will become effective on the date he acquires the Dependent. In the event that the employee fails to notify the Company of such Dependent before a claim is incurred, no benefit will be paid under Part Ill until satisfactory evidence is submitted establishing that he had acquired the Dependent prior to the date lhe claim was first incurred. Section 8 - Integration with Applicable Federal or Provincial! Laws

122 - 65- (a) (1) The provisions of this Program shall not be applicable to employees, retired employees, or surviving spouses who are or may become eligible under any Federal or Provincial law for coverages similar to those provided under the Program. Compliance by the Company with such laws shall be deemed full compliance with the provisions of the Program with respect to any such employees, retired employees, or surviving spouses eligible for benefits under such laws. If such benefits exceed the benefits provided under the Program, the Company may require from any such employees, retired employees, or surviving spouses such contributions as it may deem appropriate for such excess benefits. (2) Where the benefits under such laws are on a generally lower level than the corresponding benefits under the Program, the Company shall, to the extent it finds it practicable, provide benefits supplementary to the governmental benefits to the extent necessary to make the total benefits as nearly comparable as practicable to the benefits provided by the Program for employees, retired employees, or surviving spouses. (b) The provisions of Subsection (a) above to the contrary notwithstanding, the Company may, wherever the substitution of a private plan is authorized by any such law, modify the provisions of the Program to the extent and in the respects necessary to secure the approval of the appropriate governing body to substitute the plan provided by the Program in lieu of any plan provided by such law, and upon si.jch modification and approval as a qualified plan, the Company may make the modified plan available to employees, retired employees, or surviving spouses and may require from such employees, retired employees, or surviving spouses contributions as may be appropriate with respect to any benefits. under such modified plan which exceed the benefits provided under the Program. (c) Benefits provided employees, retired employees, or surviving spouses under the Program may be reduced by the amount of such benefits provided under any Federal or Provincial law as now in effect or hereafter enacted or amended. Section 9 - Payment of Contributions (a) Contributions at the applicable rate, when required, shall commence at the end of the calendar month in which coverage without contribution ceases. In each instance in which a contribution is required, payment shall be made monthly in advance, provided that any such employee, or other person required to contribute at his option may make payments in advance for longer periods. In cases in which continuity of employment with the Company is broken, advance contributions as to any periods thereafter shall be returned to the person whose service is broken. Where a pro-ration of contributions is necessary, the pro-ration shall be based upon one-thirtieth (1/30) for each day involved. (b) An employee who desires to continue coverage must elect whether the insurance for which he is covered under this Program is to be continued on a contributory basis for the period permitted under this Program. Such election must be made on the form provided by the Company to the employee for this purpose. If this form is not signed by the employee and returned to the Company's designated representative before the expiration of the period for which the employee is currently insured, his insurance coverage shall

123 terminate upon the expiration of such period. The election form will indicate the date the employee will be obligated to make payment for the insurance he elects to continue and will permit him to authorize deduction of additional advance contributions for any or all of the permitted period from any pay then due to him from the Company. ARTICLE Ill TERMINATION OF AN EMPLOYEE'S COVERAGE Section 1 - Breaks in Service In event of quitting, or discharge, which breaks all Company service, termination of coverage (subject to the 31-day period of continued Death Benefit coverage in Part II and any provisions for continuation of coverage contained in the Plans provided under Part Ill) shall be deemed to have occurred with cessation of work on the last day the employee worked. Where an employee not disabled or laid off absents himself from work for five consecutive work days without leave of absence, he shall be deemed to have quit for purposes of insurance on the last day he worked. Section 2 - Failure to Report Coverage shall terminate if the employee fails to return to work following the expiration of a leave of absence, vacation or following a recall from layoff, on the date the employee was scheduled to return to work. Section 3 - Failure to Return from Disability In the event an employee has been absent from work because of disability and fails to return to work within five (5) days following the date on which, based on satisfactory medical evidence, his disability ended, coverage shall terminate at the end of such five-day period. Section 4 - Military or Similar Service Coverage shall not continue during leave of absence for military service, or similar government service of any country. Section 5 - Separation Pay If an employee is granted a separation payment under any labour contract or Company policy, coverage shall terminate on the date of the separation payment, unless terminated at an earlier date under another section of this Article. Section 6 - Retirement Coverage, except as specifically provided in Parts II and Ill, will terminate on the date of retirement.

124 Section 7 - Disputed Termination (a) If an employee loses seniority under the Collective Agreement or fails to return from disability as required, all insurance will terminate the last day worked or on lhe day the failure to report occurs except that if a discharged or suspended employee has a grievance pending contesting his loss of seniority or suspension, as the case may be, or an employee who has not returned from disability is contesting the termination of his disability through the disputed claims procedure, coverage under Part Ill (except dental) will be continued for one month following the month in which the termination occurred and coverage under Part II will be continued to the end of the month the termination occurred. Thereafter the employee will be entitled to continue coverage under Parts II and Ill (except dental} by paying the full monthly premium to the Company in advance. The employee will be entitled to continue dental coverage under Part Ill by paying to the Company in advance the full premium commencing from the date termination occurred. (b) A suspended employee who has not grieved his suspension may have coverage continued in accordance with the provisions of the above paragraph but coverage may not be continued beyond 12 months from suspension. (c) Notwithstanding (a) and {b} above, an employee who is unable, because of disability, to return to work following the expiration of his suspension, will be eligible for Weekly Disability Benefits in accordance with Article I, Section 2 (c) (8) of Part I. (d) Failure to submit in advance the required monthly contributions for optional life insurance Part II, Article VIII will result in automatic termination of the insurance. In the event the grievance or disability dispute is resolved by the restoration of seniority, cancellation of the suspension, or extension of disability, as the case may be, contributions paid by the employee will be refunded. Section 8 - Labour Disputes An employee absent from work because of a work stoppage at the operation will be required to contribute the full premium charge for coverage under Parts II and Ill (except dental} beginning with the day on which the work stoppage begins, otherwise coverage will cease as of the end of the day preceding the day on which the work stoppage begins. The premium charge shall be payable by an employee in advance. Dental coverage will cease on the end of the day preceding the day on which the work stoppage begins. In the event the Company advances the necessary contributions for a specified period, the employee shall be obligated to pay such contributions after his return to work which shall be deducted by the Company from his wages earned subsequent to his return to work.

125 Coverage under Part I will cease as of the end of the day precedin1~ the day on which the work stoppage begins, except that coverage will continue under the provisions of the Program for employees who are disabled on that day. Section 9 - Failure to Make Contributions If an employee fails to make payment of a required contribution for any month, for which such contribution is required, his coverage will cease at the 13nd of the month preceding the month for which the required contribution was due. ARTICLE IV ELIGIBILITY FOR COVERAGE FOLLOWING TERMINATION THEREOF If an employee's coverage under any Part has terminated, he may again become covered on the same basis as a new employee. However, employees in the following categories whose coverage was terminated shall be entitled to coverage under Parts I, II and Ill on the date of return to active work or, if he is unable to return to work only because he is totally disabled, on the day he should return to active work. (1) An employee who was discharged, suspended, terminated due to failure to report, or due to payment of separation pay, who is reinstated by the Company to employment, and under circumstances where his service with the Company is treated as being uninterrupted for the purpose 01' rights, such as seniority, vacations, and similar rights. (2) An employee returning to work from layoff or leave of absence, provided in the case of layoff, there has been no break in his seniority service; and, in the case of leave of absence, he returns to work within one year following the month in which leave of absence commenced. (3) An employee returning to work following absence from work due to a labour dispute. ARTICLEV CONTINUATION OF INSURANCE WHILE ABSENT FROM WORK Employees entitled to insurance coverage under this Insurance Program Agreement under Articles II and IV of this Part IV will be entitled to continuation of insurance while absent from work as provided in this Article V, except that optional life insurance coverage will only continue if the employee makes the r1equired contribution as stated in Part II Article VIII Section 4. In the event that Life Insurance, Accidental Death and Dismemberment and Sun1ivor Income Benefits are in force as the result of the application of this Article V when the employee reaches his 65th birthday, Life Insurance and Accidental Death and Dismemberment Insurance shall thereafter be reduced as provided in Part II. The following

126 provisions apply to Parts I through Ill except to the extent special provisions in those Parts may govern the continuation of insurance in certain cases. Section 1 - Leave of Absence (a) Initial Period of Continuation: If an employee is on leave of absence, his insurance coverage under Parts II anol 111 will be continued without contribution by him for one month after the month in which he ceased active employment. (b) Coverage After Initial Period of Continuation: An employee on leave of absence may continue his full coverage under Parts 11 and 111 for eleven months following the initial period of continuation by paying the required contributions. Section 2 - Disability The Company will continue all insurance coverage under Parts I, II and Ill, with no employee contribution, for an employee who becomes totally disabled while actively at work, for the duration of such inability to work up to a period equal to his months of seniority at the commencement of such disability, or 52 weeks, whichever is less. If the employee is receiving Long Term Disability Benefits after the expiration of the period specified above, coverage under Part II and Part Ill will continue in effect each month for which he receives such benefits. If at the expiration of the periods specified above an employee is receiving payments because of employment with the Company under any Workplace Safety & Insurance Board Law or Act or any Occupational Disease Law or Act, his Life and Accidental Death and Dismemberment Insurance under Part II shall be continued for the period he continues to receive such payments. Section 3 - Laid-Off Employees (a) Initial Period of Continuation If an employee is laid-off, all of his insurance coverage's under Parts I, II and 111 will be continued without contribution by him for one month after the month in which he ceased active employment. Allocation of vacation money to, or scheduling of vacation for, a week or weeks immediately following layoff will not change the date of layoff for this purpose. (b) Coverage After Initial Period of Continuation:

127 (1) Coverage Under Parts II and Ill will be continued free per th1~ following table: Additional Months of Free Coverage Full Calendar Months of Service as per Laid-Off Date Less than months but less than months but less than months but less than months but less than months but less than months but less than months or more (2) Extended Coverage - Contributory Part II & Part Ill (except Article V) Part Ill Article V If an employee remains on layoff beyond the period for which he was entitled to coverage wilhout cost, he may continue his coverage under Parts II and Ill for a period nol exceeding 12 calendar months following the expiration of the period for which he is entitled to coverage without cost by paying the required premiums to the Company on a monthly basis in advance. Section 1 - Claim Forms ARTICLE VI PAYMENT OF CLAIMS The Company, upon receipt of a notice of claim, will furnish to the claimant forms for filing proofs of claim. If such forms are not furnished within fifteen days after the giving of such notice, the claimant shall be deemed to have complied with the requirements as to proof of his claim upon submitting written proof covering the occurrence, character, and extent of the occurrence for which claim is made. Section 2 - Time of Payment of Claims Subject to proof of claim, all benefits which accrue weekly or monthly will be paid weekly or monthly as the case may be during the continuance of the period for which the applicable Part provides benefits and any balance remaiining unpaid upon the termination of the claim will be paid immediately upon receipt of satisfactory proof. Other benefits will be paid promptly after the required proofs are submitted. Section 3 - Payment of Claims All benefits of Parts I and II are payable to the covered employee unless provided otherwise. Benefits under Part Ill are payable directly to the hospital, physician or other medical rendering service organization unless there is a receipt or receipted bill attached to a claim, in which case, benefits would be paid to the covered employee.

128 ARTICLE VII RECOVERY OF BENEFIT OVERPAYMENTS (a) If it is determined that any benefit(s) paid to an employee under Parts I or II should not have been paid or should have been paid in a lesser amount, written notice thereof shall be given to such employee and he shall repay the amount of the overpayment. (b) If the employee fails to repay such amount of overpayment promptly, the Company or insurance company shall arrange to recover the amount of the overpayment by making an appropriate deduction or deductions from any future benefit payment or payments payable to the employee under Parts I and II, or the Company may make an appropriate deduction or deductions from future compensation payable by the Company to the employee. (c) However, no repayment will be required unless notice is given to the employee by the Company or the insurance company within 60 days from the date the Company or insurance company had knowledge of the overpayment. The amount deducted from each pay cheque or benefit cheque shall be limited to $50.00 or the amount permitted by law, whichever is less, except that no such time limitation shall be applicable in cases of fraud or willful misrepresentation.

129 Benefit Letter # 1 June 21, 1991 Renewed October 27, 1994 Renewed 1997 Renewed 2000 Revised September 25, 2003 Revised September 29, 2006 Renewed August 2009 RenewedApril 30, 2014 Mr. Ken Scearce Chairman Local 504, C.A.W. International Truck and Engine Unit Subject: OUT OF PROVINCE The Company agreed during the 1991 negotiations to upgrade the current Out of Province Hospital, Surgical and Medical Expense Benefit to include the Emergency Travel Assistance Program (ETA) as contracted by the company. This coverage will be extended to all current employees as well as current and future retirees effective October 1, Employees hired on or after October 1, 2003 will not have this benefit when they retire. Bruce Dobie Director Human Resources and Organizational Effectiveness

130 NON-CONTRIBUTORY RETIREMENT PLAN AGREEMENT 2014 INDEX PAGE Introduction Section 1 - Prior Plans 1 2 Exhibit"A" Establishment of Plan 4 ARTICLE I - Eiigibility Requirements 1.01 Normal Retirement 1.02 Regular Early Retirement 1.03 Special Early Retirement 1.04 Automatic Retirement 1.05 Total & Permanent Disability Retirement 1.06 Deferred Vested Pension on Separation 1.07 Legislated Early Retirement ARTICLE II - Monthly Life Income Benefit 2.01 Normal & Automatic Retirement Pension 2.02 Regular Early Retirement Pension 2.03 Special Early Retirement 2.04 Total & Permanent Disability Retirement 2.05 Deferred Vested Pension 2.06 Pensioners Retired With Benefits Commencing Prior to October 1, Surviving Spouses of Employees Retired or Deceased Prior to October 1, (a) Payment of Contributory Annuity Plan Benefits Purchased by Company Contributions prior to January 1, 1966 (b) Retirement Under Non-Contributory Pension Plans in Effect Prior to January 1, 1966 (c) Retirement Under the Non-Contributory Retirement Plans in Effect From January 1, Legislated Early Retirement Pension

131 PAGE ARTICLE Ill - Temporary Benefits 3.01 Eligibility and amounts 3.02 Termination of Benefits ARTICLE IV - Suppiemental Allowance for Early Retirement 4.01 Eligibility 4.02 Amounts 4.03 Disability 4.04 Sul'Vivor Option 4.05 Limitation 4.06 Re-employment 4.07 Re-determination 4.08 Maximum Benefit ARTICLE V - Sul'Vivorship Benefits 5.01 Survivor Option Reduced Employee Pension Survivor Benefit Rules for!election Death Before Retirement Death of Pensioner Before Pension Commences Death Before Retirement for Post 1986 Credited Servic:e Survivor Benefits Available to Former Employees Entitled to a Deferred Vested Pension 30 ARTICLE VI - Application and Payment of Benefits 6.01 Notice of Retirement and Applications 6.02 Information from Applicant 6.03 Termination of Employment on Retirement 6.04 Payment of Benefits 6.05 Transfers from the Plan 6.06 Transfer Between Pension Plans

132 ARTICLE VII - Credited Service 7.01 Credited Service Prior to January 1, Credited Service From January 1, 1965 to December31, Credited Service from January 1, Loss of Credited Service 7.05 Re-employment PAGE ARTICLE VIII - Financing 8.01 Pension Fund 8.02 Company Contributions ARTICLE IX 9.01 Legal Requirements 45 ARTICLE X - Termination Allocation of Pension Fund Distribution Medium Surplus Upon Discontinuance ARTICLE XI - Maximum Benefits Maximum Allowable Lifetime Pension for Employees Retiring After December 31, Maximum Allowable Supplementary Pension for Employees Retiring After December 31, ARTICLE XII - Definitions 52 ARTICLE XIII - Communications 55 APPENDIX "A" - Benefit Class Codes 56

133 PAGE EXHIBIT "B" Administration Function and Powers of the Board Establishment of Local Committees EXHIBIT "C" Standards for Application of Special Early Retirement Provision A. An Emp~oyee who is on Permanent Disability 60 B. An Emp~oyee who is Laid Off 61

134 NON-CONTRIBUTORY RETIREMENT PLAN AGREEMENT This Agreement is made and entered into as of the 30th day of April 2014, by and between: Navistar Canada, Inc., hereinafter referred to as the "Company"; and Unifor and its Local 504 referred to hereinafter as the "Union"; and shall constitute the entire Agreement between the parties with respect to pensions for Employees covered hereby. The Navistar Canada, Inc. Non-Contributory Retirement Plan (the "Navistar Canada Plan") is made up of two distinct parts; Part A is in respect of employees employed at the Chatham Plant and Part B is in respect of employees employed at the Burlington Parts Distribution Centre. This Agreement and the attached text are concerned only with Part B. The Company and the Union hereby agree that the provisions of Part B of the Na vis tar Canada Plan, a copy of which is hereby attached to this Agreement as Exhibit "A" and made a part of this Agreement, shall be applicable to the employees represented by the Union and covered by this Agreement as if fully set out herein, modified and supplemented, however, by provisions hereinafter set forth. In the event of any conflict between the provisions of the Plan and the provisions of this Agreement, the provisions of this Agreement will supersede the provisions of the Plan to the extent necessary to eliminate such conflict. The Plan, as set forth in Exhibit "A", and the Plan as it may be modified and supplemented by superseding provisions of this Agreement, as above provided, are both contingent upon and subject to obtaining and retaining such approval of the Minister of National Revenue as the Company may find necessary to establish the deductibility for income tax purposes of any and all contributions made by the Company thereunder as being qualified for tax exemption under the provisions of the Income Tax Act. Any modification or amendment of either the Plan, or the Plan as modified and supplemented by this Agreement, may be made retroactively by the Company with the consent of the Union, if necessary or appropriate, to qualify or maintain the Plan as a plan and trust meeting the requirements of the Income Tax Act, as now in effect or hereafter amended or adopted or any other applicable provisions of the tax laws, as now in effect or hereafter amended or adopted, and the regulations issued thereunder, provided that pension benefits under the Plan are not diminished. Page-I-

135 Any modification of the Plan may also be made retroactively by the Company with the consent of the Union if required under the Pension Benefits Act of the Province of Ontario and regulations issued thereunder. Section 1 - Prior Plans: (1) An employee covered by this Agreement who, prior to January 1, 1966, has participated in the Contributory Annuity Plan, shall be ineligible to make further contributions under the Contributory Annuity Plan from and after January 1, Contributions by the Company made prior to January l, 1966 shall be applied in accordance with the terms of the Plan. (2) Any retirement benefits which are provided by the Plan shall be reduced by the retirement benefits which the employee may be entitled to from Company contributions on his behalf to the Contributory Annuity Plan, but only to the extent provided under the Plan. (3) The provisions of the Plan shall as of the effective date hereof, amend and supplement the provisions of the Non-Contributory Pension Plan as effective from January 1, 1954 to December 31, 1965, and the provisions of the Noncontributory Retirement Plans as effective from time to time between January 1, 1966 to December 31, 1968, from January 1, 1969 to June 30, 1971, from July 1, 1971 to June 30, 1974, from July 1, 1974 to September 30, 1977, from October 1, 1977 to September 30, 1980, from October 1, 1980 to September 30, 1983, from October 1, 1983 to September 30, 1985, from October 1, 1988 to September 30, 1991, from October 1, 1991 to September 30, 1994, from October l, 1994 to September 30, 2000, from October 1, 2000 to September 30, 2003, from October 1, 2006 to August 31, 2009, from September 1, 2009 to August 31, 2012, and from April 30, 2014 to April 27, In determining credited service under the Plan for an employee who is a Union representative, credit shall be received for time lost from work when on union business as provided for in the Collective Agreement between the parties up to a maximum of 40 hours per week. Provisions for Adtninistration of this Pension Agreement and the Standards for Application of the Special Early Retirement Provision of the Plan are set forth in Exhibits "B" and "C" respectively attached hereto. Th.is Pension Agreement shall become effective as of April 30, 2014, and shall remain in full force and effect without change until 11:59 p.m. on April 27, Until three months prior to the expiration date of the Collective Agreement between the parties neither party shall have the right to request any change in, amendment to or addition to this Page-2-

136 Pension Agreement. Subject to any subsequent agreement between the Company and the Union, participation in the Plan is hereafter restricted to those Employees represented by the Union who were hired by the Company prior to October 1, 2003 and who have not suffered a break in seniority. In the event neither party requests any change in, amendment to or addition to this Pension Agreement in accordance with the provision in the preceding paragraph, the terms and provisions of this Agreement shall be renewed for a further period of three years from the expiration date of this Agreement. IN WITNESS WHEREOF, the parties have hereunto set their hands and seals the day and year first above written. FOR THE COMPANY: FOR THE UNION: Page-3-

137 Exhibit "A" NA VIS TAR CANADA, INC. NON-CONTRJBUTORY RETIREMENT PLAN (for represented hourly employees at the Parts Distribution Centre) Revenue Canada Registration No ESTABLISHMENT OF PLAN The Plan, established to provide retirement income for represented Employees covered by the Plan who retire while the Plan is in effect, shall continue to be!mown as the "Navistar Canada, Inc. Non-Contributory Retirement Plan" herein referred to as the "Plan". The primary purpose of the Plan is to provide periodic payments to eligible employees of the Company after retirement and until death in respect of their service as employees. The provisions of the Plan as set forth herein shall apply to Employees who retire witln a pension commencing on or after September 1, 2009, and shall amend and supplement the provisions offue Plans as in effect from January 1, 1954 to December 31, 1965 and from January 1, 1966 with amendments as of January 1, 1969, July 1, 1971, July 1, 1974, October 1, 1977, October 1, 1980, October 1, 1983, October 1, 1985, October 1, 1988 October 1, 1991, October 1, 1994, October 1, 2000, October 1, 2003, and October 1, Provisions of the prior plans shall remain in effect to determine benefits for retirements thereunder except as specifically changed by the provisions set forth herein. One of the purposes of this amendment and restatement is to comply with Applicable Pension Laws and Revenue Rules, and in particular to recognize a number of changes to the Income Tax Act (Canada) and the Regulations thereunder that became effective January 1, This amendment is also meant to incorporate increases in pension benefit levels negotiated between the Union and the Company to become effective October 1, The Plan is intended to be an employees' pension plan accepted for registration under the Income Tax Act (Canada) and Applicable Pension Laws. The Plan shall be designed, written and administered to comply with the requirements for registration under Revenue Rules and Applicable Pension Laws. If the Plan fails to comply with any such requirements, the Company may, with the consent of the Union and under the terms of a collective agreement, amend the Plan so to comply, or discontinue the Plan in accordance with applicable pension legislation. Page-4-

138 The Company in the establishment of the Plan or in the establishment of the prior plan or in this amendment and restatement expressly does not and has not intended to create a trust. If, and to the extent the Plan, or the Plan together with the funding agreement, is construed as a trust, the Company expressly reserves the right to revoke such trust, in accordance with the powers of amendment or the powers of termination contained in the Plan in accordance with applicable pension legislation. The Plan shall be governed and administered in accordance with the Income Tax Act (Canada), the Pension Benefits Act (Ontario) and any regulations thereto, and shall be construed in accordance with the laws of the Province of Ontario. The Company agrees that the Plan not be considered a multi-employer pension plan within the meaning of Applicable Pension Laws and Revenue Rules. Effective October 1, 2003, and until membership in the Plan is reopened by the Company and the Union, the Plan is closed to new members, and only Employees represented by the Union who were employed prior to such date (including, for greater certainty, those Employees who were not actively at work on such date but return to employment with the Company subsequent thereto without incurring a break in seniority) shall be entitled to participate in the Plan. In conjunction with this change, the Company expressly reserves the right to amend the Plan, with the consent of the Union, at any time, to designate, subject to the provisions of Applicable Pension Laws and Revenue Rules, additional periods of service which can be recognized under the Plan or to permit one or more additional classes of employees to join the Plan. Page-5-

139 ARTICLE I Eligibility Requirements 1.01 Normal Retirement. Normal retirement age shall be 65. Any Employee who has attained age 65 and has completed 2 or more years of Credited Service as provided in Article VII, who retires, or is retired by the Company, shall upon proper application be entitled to a pension Regular Early Retirement. An Employee who (a) Has attained age 60 but not age 65, and has completed 10 or more years of Credited Service; or (b) Has attained age 55 but not age 60, and whose combined years of age and years of Credited Service total 85 or more (fractions of years to be expressed as tenths of a year); or ( c) Has completed 30 or more years of Credited Service may retire at his option and shall upon proper application be entitled to a pension Special Early Retirement. An Employee who has attained age 55, but not age 65, and has completed 10 or more years of Credited Service, may be retired at the option of the Company, or under mutually satisfactory conditions, and shall upon proper application be entitled to a pension, provided; however, that an Employee discharged for cause shall not be eligible for a pension under this Section Automatic Retirement. An Employee may, with Company consent, postpone his retirement beyond his Normal Retirement Date, but not later than the first of the month coincident with or. next following the date on which he attains age 68. The Company may, at its sole discretion, retire any Employee age 65 or older by reason of the Employee's inability to perform competently the work assigned to him. An employee who attains the automatic retirement date with more than 5 years of Credited Service shall receive a monthly pension determined in accordance with Section 2.01 of Article II based on actual years of Credited Service at retirement Total and Permanent Disability Retirement. (a) Any Employee who is determined to have incurred a Total and Permanent Disability and who has completed 10 or more years of Credited Service may retire at his request or be required to retire by the Company and shall upon proper application be entitled to a pension. Page-6-

140 (b) (i) For the purposes of the Plan, the expression "Total and Permanent Disability" shall mean such physical or mental impairment, as certified in writing by a qualified medical doctor, as renders the Employee wholly and permanently incapable of engaging in employment for which the individual is reasonably suited by virtue of the individual's education, training or experience and if there is no reasonable expectation this individual will recover from the disability. (ii) (iii) A Disability Pensioner may be required to submit to medical examination at any time during retirement prior to age 65, but not more often than once every 6 months, to determine whether he is eligible for continuance of the disability pension. If on the basis of such examination it is found the Pensioner is no longer Totally and Permanently Disabled or if the Pensioner engages in gainful employment except for purposes of rehabilitation, all as determined by the Company, the Pensioner will be deemed to have recovered and his disability pension will cease. In the event the disability Pensioner refuses to submit to medical examination the pension will be discontinued until the Pensioner is medically examined and it is established that the Pensioner is eligible to receive such pension. (c) Notwithstanding (b)(i) above, if an Employee was already receiving Total and Permanent Disability retirement benefits as of December 31, 1991, the determination as to whether an Employee remains Totally and Permanently Disabled shall be made in accordance with the provisions of the Prior Plan Deferred Vested Pension on Separation. Any Employee who has completed 2 or more years of Credited Service who has not attained age 5 5, whose employment relationship is terminated and who is not eligible for any other type of pension under the Plan, shall upon proper application be entitled to a deferred vested pension for each year of credited pension service earned from January 1, 1987, or, each year of credited pension service earned prior to January 1, 1987, which when added to each year of credited pension service earned from January 1, 1987, equals 10 or more years of credited pension service Legislated Early Retirement. Notwithstanding Section 1.02 of this Article I, an Employee who has attained age 55 and has completed two years of service in the Plan, but is not eligible under 1.02, 1.03 or 1.05 of this Article I, may retire at his option and shall upon proper application be entitled to a pension. Page-7-

141 ARTICLE II Monthly Life Income Benefit 2.01 Normal and Automatic Retirement Pension. The monthly pension payable to an Employee retired under the normal or automatic retirement provisions of the Plan shall be a monthly life income benefit (including any annuity purchased for the Employee by Company contributions to the Contributory Annuity Plan in effect prior to January 1, 1966, expressed in terms of a life only guarantee) which shall be the product of the Employee's Credited Service at his date of retirement and the monthly life income benefit rates applicable to the Employee's Benefit Class Code, A, B, or C, as set forth in Appendix A hereof, and for the months in which payment is to be made, as set forth in the Table innnediately following: Life Income Rates for Months Commencing A Benefit Class Code September 1, 2009 and after August 1, 2012 $ Regular Early Retirement Pension. The monthly pension payable to an Employee retired under the regular early retirement provisions of the Plan shall be the amount in accordance with Article II, Section 2.01, multiplied by a percentage as set forth in the following Table: Age When Pension Commences Percentage (% )* 21.0% Page-8-

142 or over * For each additional full month of attained age when benefits commence, the applicable percentage shall be determined by a straight-line interpolation from the percentage applicable to the next higher age in the above Table, rounded to the nearest one-tenth of one percent (1/10%). With respect to Life Income Benefit rate increases occurring after retirement, the following percentages shall be used in determining the amount of increased pension instead of the percentages based on age when pension commences: Page-9-

143 Attained Age of Pensioner (or the Age Pensioner/Employee Would Have Been Had He Survived) on Effective Date of Pension Increase Age 42 to Age 47 Age 47 to Age 52 Age 52 to Age 57 Age 57 to Age 62 Age 62 or over Percentage (%) For an Employee who retires with 30 or more years of Credited Service, the monthly life income benefits payable to him commencing with the month following the month in which he attains the Statutory Benefit Age shall be redet=ined without reduction Special Early Retirement. The monthly pension payable to an Employee retired under the special early retirement provisions of the Plan shall be determined in accordance with Section 2.01, provided that such pension shall be reduced by \4 of 1 % for each month that the pension commencement date precedes the earliest date at which an unreduced pension is payable under the Revenue Rules Total and P=anent Disabilitv Retirement. The monthly pension payable to an Employee retired under the Total and Permanent Disability provisions of the Plan shall be determined in accordance with Section Deferred Vested Pension. The monthly pension (including any annuity purchased for the Employee by Company contributions to the Contributory Annuity Plan in effect prior to January 1, 1966, expressed in terms of a life only guarantee) payable at age 65 to a former Employee who has met the requirements of Section 1.06 (Deferred Pension) shall be a monthly life income benefit rate for each year of Credited Service as det=ined by his Benefit Class Code at his date of termination as set forth in the following Table: Page

144 Life Income Rates for Months Commencing A Benefit Class Code September 1, 2009 and after August 1, 2012 $51.05 In lieu of a pension commencing at age 65, a former Employee with a deferred pension right may elect to receive the monthly pension commencing after age 60 reduced by 0.6% for each complete calendar month he is under age 65 at the date the pension commences. In lieu of a monthly pension commencing after age 60, a former employee may elect to receive a monthly pension commencing after age 55 and prior to age 60, when his combined years of age (for this purpose the age shall be the age to the nearest 1112 as of the commencement of benefits, with such age then converted to years and tenths) and years of Credited Service shall total 85 or more. The monthly pension shall be determined in accordance with the Table above and multiplied by a percentage as set forth in the following Table; Page-11-

145 Age When Pension Commences Percentage(%)* * Prorated for intermediate ages computed on the basis of the number of complete calendar months by which the employee is under the age he will attain at his next birthday. Otherwise, in lieu of a monthly pension commencing at age 65, a former Employee with a deferred pension right may elect to receive the monthly pension commencing after age 55 that is the Actuarial Equivalent of his deferred pension right, provided that the reduction is in respect of Actuarial Equivalence at least 'I. of 1 % for each month that the pension commencement date precedes the earliest date at which an unreduced pension is payable under the Revenue Rules. If a former employee elects to receive the pension earlier than age 65, he must submit written application to the Company at least 60 days prior to the date the pension is to become effective. Any former Employee eligible for a deferred vested pension and who has not applied for the pension by the 90th day prior to his 65th birthday shall be notified of his rights to apply under the Plan. The notice shall be mailed to his last address on Company records Pensioners Retired With Benefits commencing prior to September l, 2009 (a) (i) Subject to the other provisions of this Section a former employee retired from the Company with benefits commencing prior to September l, 2009 under the provisions of any pension plan as in effect at the date of his retirement shall, receive a monthly Life Income Benefit in accordance with the Table inunediately following: Page

146 Employees Retired With Benefit Sept 1, 2009 Benefits Commencing Class Code And After Prior to All Class July 1/71 Codes July 1/71 A through B June 1/75 c July 1/75 A through B Sept 1/77 c Oct 1/77 A through B Sept 1/79 c Oct 1/79 A through B Sept 1/80 c Oct 1/80 A through B Sept 1/85 c Oct 1/85 A through B June 1/87 c July 1/87 A through B June 1/88 c July 1/88 A through B Sept 1/88 c Oct 1/88 A through B Sept 1/91 c Oct 1/91 A Page-13 -

147 through B Sept 1/94 Oct 1194 A through B Sept 1195 Oct 1195 A through B Juoe 1196 July 1196 A through B Juoe 1/97 July 1/97 A through B Sept 1/98 Oct 1/98 A through B Sept 1/99 Oct 1199 A through B Sept 1/00 Oct 1/00 A through B Sept 1/01 Oct 1/01 A through B Sept 1102 Oct 1102 A through B Sept 1/03 Oct 1103 A through B Sept 1104 Page-14-

148 Oct 1/04 through Sept 1/05 Oct 1/05 through Sept 1/06 Oct 1106 through Sept 1/07 Oct 1/07 through Sept 1/08 Oct 1/08 through Aug 1/09 A B A B A B A B A B (ii) (iii) The monthly Life Income Benefit payable immediately prior to October 1, 1980 shall be adjusted, if applicable, by any reduction factor applied at date of retirement except that effective October 1, 1980, for a Pensioner who retired on or after July 1, 1974 but prior to October 1, 1977 after completing 30 years of Credited Service who had not attained age 62 when his benefits commenced, the Life Income Benefit that otherwise would have been payable commencing with the second month following the month in which the Pensioner attains the Statutory Benefit Age shall be re-determined to the amount payable without reduction for retirement before attaining age 62. With respect to the Life Income Benefit rate increases occurring on and after October 1, 1980 the following percentages shall be used in determining the amount of increased pension instead of the reduction factor applied at retirement: Page-15-

149 Attained Age of Pensioner (or the age Pensioner or Employee Would Have Been Had He Survived) on the Effective Date of Pension Increase Age 42 to Age 47 Age 47 to Age 52 Age 52 to Age 57 Age 57 to Age 62 Age 62 or over (%) Percentage (b) (iv) (i) (ii) For Pensioners who retired on or after July 1, 1974 with 30 or more years of Credited Service who had not attained age 62, the Life Income Benefit rate increases occurring on or after October 1, 1980 and payable commencing with the second month following the month in which the pensioner attains the Statutory Benefit Age, shall be redetermined to the amount payable without any reduction for retirement before attaining age 62. A Pensioner who retired under the Non-Contributory Retirement Plans as in effect from January 1, 1966 to August 31, 2009 and who at the time ofretirement elected the Survivor Option, will receive a reduced monthly Life Income benefit determined in accordance with Section 2.06 (a) multiplied by the Survivor Option percentage factor in effect at the date of the Pensioner's retirement. On the death of the Pensioner, the monthly pension payable to the surviving Spouse shall be based on the redetermined monthly Life Income Benefit multiplied by the Survivor Benefit percentage factor in effect at the date of the Pensioner's retirement. (c) Any pensioner retired on or after July 1, 1974 but prior to October 1, 1977 with 30 or more years of Credited Service whose Life Income benefits shall be re-determined effective October 1, 1980 in accordance with Section 2.06 (a) (ii) shall have the Supplemental Pension payable after the Statutory Benefit age recalculated, effective October 1, 1980, to the amount payable without reduction for retirement before attaining age 62 and any increase to the Supplemental Pension which was due to the reduction of his Life Income benefits as calculated at retirement shall be cancelled. Page 16

150 (d) (i) A Pensioner retired on or after July 1, 1974 but prior to October 1, 1994, with 30 or more years of Credited Service, who immediately prior to September 1, 2009 is entitled to a Supplemental Allowance, will receive a monthly Supplemental Allowance payable to the second month following the month he attains the Statutory Benefit Age which when added to the benefits otherwise payable under the Plan prior to any reduction for a Survivor Option as described in Section 2.06 (b) (i) shall equal the total monthly benefit amount set forth below: Retired With Benefit Sept 1/2009 Benefits Class AND Commencing Code AFTER July 1/74 A $ through B Sept 1/75 c Oct 1/75 through All Sept 1/76 Classes Oct 1/76 through All Sept 1/78 Classes Oct 1/78 through All Sept 1179 Classes Oct 1/79 through All Sept 1/80 Classes Oct 1/80 through All Sept 1/85 Classes Oct 1/85 through All June 1/87 Classes Page-17-

151 July 1/87 through All June 1188 Classes July 1188 through All June 1/89 Classes July 1/89 through All June 1/90 Classes July 1190 through All June 1/91 Classes July 1/91 through All Sept 1191 Classes Oct 1191 through All Sept 1/94 Classes Oct 1/94 through All Sept 1195 Classes Oct 1195 through All Sept 1196 Classes Oct 1196 through All Sept 1197 Classes Oct 1/97 through All Sept 1198 Classes Oct 1/98 through All Sept 1/99 Classes Page-18-

152 Oct 1199 through All Sept 1100 Classes Oct 1100 through All Sept 1101 Classes Oct 1101 through All Sept 1102 Classes Oct 1/02 through All Sept l/03 Classes Oct 1103 through All Sept 1104 Classes Oct 1104 through All Sept 1105 Classes Oct l/05 through All Sept 1106 Classes Oct 1106 through All Sept 1107 Classes Oct 1107 through All Sept 1108 Classes Oct 1/08 through All Aug 1109 Classes (ii) If the Pensioner retired on or after July 1, 1974 but prior to October 1, 1977 before attaining age 5 8, the amounts set forth above shall Page-19-

153 be redetermined wi1hout reduction for retirement before attaining age 58. (e) A Pensioner retired wi1h benefits commencing on or after October l, 1977 but prior to September 1, 2009 wi1h less 1han 30 years of Credited Service, who immediately prior to September 1, 2009 is entitled to a Supplemental Allowance, will receive a monthly Supplemental Allowance which when added to 1he benefits o1herwise payable under 1he Plan prior reduction for a Survivor Option as described in Section 2.06 (b) (i) shall equal 1he total benefit amount as set for1h below: (f) (i) (ii) (iii) (i) (ii) The applicable amounts as described in Table ( d) (i) above divided by 30, and If 1he Pensioner was under age 60 at 1he time of retirement, 1he amounts determined in (i) above shall be reduced by 1 % for each mon1h or fraction 1hereof1he employee was under age 60, and The result shall be multiplied by 1he Pensioner's Credited Service at 1he date of retirement. If 1he Spouse of a Pensioner who elected 1he survivorship option predeceases such Pensioner, or if 1hey are legally married are divorced by Court Decree, 1he terms of which do not expressly prohibit cancellation of 1he survivors option, or if not legally married have permanently terminated 1heir cohabiting and residing toge1her, 1he Pensioner may cancel 1he survivorship option and have his monthly pension restored to 1he amount payable wi1hout such option, effective 1he first day of 1he 1hird mon1h following 1he mon1h in which 1he Company receives satisfactory proof of 1he Spouse's dea1h, or 1he Pensioner's written revocation of1he election because of divorce or termination of 1heir cohabiting and residing toge1her on a form approved by 1he Company and if applicable, accompanied by 1he final Decree of Divorce. A Pensioner who retired on or after January 1, 1966 who marries or remarries subsequent to 1he earliest date a survivor benefit election was in effect, or was not in effect solely because 1he Pensioner was not 1hen married, may elect or re-elect a survivor benefit option. The survivor option shall be provided under 1he terms and conditions of 1he Plan in effect at 1he time of 1he Pensioner's retirement. The survivor option shall become effective on 1he first day of 1he 1hird mon1h following 1he month in which 1he Company Page-20-

154 receives a completed election form, but in no event before tbe first day of tbe montb following tbe montb in which tbe Pensioner has been married one year. For purposes of this Section 2.06 (f) (ii) marries or remarries shall include a common-law marriage witb a Spouse as defined in Article XII G). No election hereunder shall become effective under any circumstances for any Pensioner whose completed election form is received by tbe Company aftei: tbe first day of tbe montb in which tbe Pensioner has been married one year. (g) The provisions of this Section 2.06 shall not be applicable to former employees witb a deferred vested pension Surviving Spouses of Employees Retired or Deceased Prior to October [, (a) (b) A surviving Spouse of a retired or deceased Employee who is receiving or is entitled to receive a monthly pension benefit, shall, commencing witb monthly benefits payable on or after October 1, 1980, have such benefits re-determined so!bat tbe amount payable shall be 55% of tbe monthly benefit!bat would have been payable to tbe retired Employee, or to tbe Employee who would have been eligible for monthly pension benefits had he retired at tbe date of his death, as determined in Section 2.06 (b )(i) above. The Monthly pension payable under this Section shall not be payable for any montb tbe surviving Spouse is entitled to receive any Transition or Bridge Survivor Income Benefits under tbe Insurance Program of tbe Company (a) Pavment of Contributory Annuitv Plan Benefits Purchased by Company Contributions prior to January [, (i) (ii) Any such annuities accruing to tbe Employee under tbe Contributory Annuity Plan will be available to him at retirement, on a 10 year guarantee basis. If an Employee receives such annuity benefits on a 10 year guarantee basis, tbe total pension benefits payable to such an Employee will be adjusted accordingly so!bat tbe Employee will receive such total pension benefits on an actuarial equivalent basis. Notwithstanding 2.08 (a) (i) above, if an Employee elects a survivor benefit as per Article V of!bis Plan, or if tbe surviving Page-21-

155 Spouse of an Employee is eligible for a survivor benefit in accordance with Section 5.05 of Article V, (Death before Retirement) the benefits payable thereunder, including the benefits, if any, accruing under the Contributory Annuity Plan purchased for the Employee by Company contributions, shall be expressed on a life only guarantee basis. (b) Retirement Under Non-Contributorv Pension Plans m Effect Prior to January 1, In determining the amount of benefits under Section 2.06, annuities purchased for Employees by Company contributions to the Contributory Annuity Plan for Employees who retired prior to January 1, 1966 under the Non-Contributory Pension Plan as then in effect, will be expressed in terms of a 10 year guarantee. ( c) Retirement Under the Non-Contributory Retirement Plans in Effect From January l, In determining the amount of benefits under Section 2.06 for Employees who retired on or after January 1, 1966, annuities purchased by Company contributions to the Contributory Annuity Plan in effect prior to January 1, 1966 will be expressed in terms of a life only guarantee Legislated Early Retirement Pension. The monthly pension payable to an Employee retired under Section 1.07 shall be the Actuarial Equivalent of the amount determined in accordance with Section Page- 22-

156 ARTICLE ill Temporary Benefits 3.01 Eligibility and Amounts. Employees retired under Article I, Section 1.03, Special Early Retirement, or Section 1.05, Total and Permanent Disability Retirement, shall be entitled to a monthly temporary benefit payable for months prior to the month following the month he attains the Statutory Benefit Age as follows: Monthly temporary benefits falling due for months during the period indicated shall be the rates as set forth below for each year of credited service subject to the indicated maximums Employees Retired With Benefits Commencing Oct. 1/88 AND AFTER Oct. 1/88 And After $16.00 (max $400) The temporary benefits of any pensioner who may qualify for a Statutory Benefit by means of disability shall be reduced by the amount of such Statutory Benefit for which he may be eligible whether or not applied for Termination of Benefits. Any temporary benefits as provided in this Article ill shall be payable only for months prior to the month following the month the pensioner attains the Statutory Benefit Age or, if earlier, in the month the pensioner dies. Page-23 -

157 ARTICLE IV Supplemental Allowance for Early Retirement 4.01 An Employee who retires under Section 1.02, 1.03 or 1.05 with benefits payable commencing on or after September 1, 2009 and is eligible to file an application to commence the payment of pension benefits within three years after the day last worked for the Company, or, within the period before the loss of seniority occurs, whichever occurs first, and agrees to restrict his participation in the work force as provided in subsection 4.05, will receive on the following terms and conditions a monthly supplemental allowance in addition to benefits under other sections of the Plan. This Article IV shall have no application to an Employee discharged as the result of theft from the Company, sabotage, physical acts of violence which could cause great bodily harm against any individual employed by the Company, felonies, whether or not prosecuted, committed on Company premises or other similar acts as determined by the Company; provided that such employee may request a ruling from the Joint Central Board of Administration as to whether the discharge is for one of the foregoing reasons and, in the event of a tie vote between the members, have the impartial Chairman cast the deciding vote The monthly amount of the supplemental allowance, subject to the o1her provisions of this Article IV, shall be determined as follows: (a) For an employee with 30 or more years of Credited Service who retires with benefits payable commencing on or after September 1, 2009 the monthly amount of supplemental allowance payable prior to the month following the month he attains Statutory Benefit Age, subject to the other provisions of this Article IV, shall be determined as follows: Monthly Supplemental Allowance which when added to the monthly Life Income and, if applicable, the monthly Temporary Benefits shall equal the total monthly benefit amounts set forth below Employees Retired with benefits commencing September 1, 2009 and after: and after $2750 (b) For an employee with less than 30 years of Credited Service who retires with benefits payable commencing on or after September l, 2009, the Page - 24-

158 monthly amount of supplemental allowance payable for months prior to the month following the month he attains the Statutory Benefit Age, subject to the other provisions of this Article IV shall be determined as follows: (i) (ii) (iii) The applicable amounts as described in Section 4.02 (a) divided by 30,and If the employee was under age 60 at the time of retirement, the amounts determined in (i) above shall be reduced by 1 % for each month or fraction thereof the employee was under age 60, and The result shall be multiplied by the employee's Credited Service at the date of retirement In the case of an Employee whose temporary benefit is reduced because of entitlement to a Statutory Benefit by reason of disability, in computing his supplemental allowance the Employee's monthly pension shall be deemed to include the amount of temporary benefit payable without such reduction If an employee entitled to a supplemental allowance elects the survivorship option described in Article V of the Plan, his supplemental allowance shall be computed on the basis of the monthly pension he would have received had he not elected such option The supplemental allowance shall commence on the first day of the month following the date on which the Employee retires and shall be payable thereafter up to and including the month in which he dies, is reemployed by the Company or, his pension ceases for any reason, except that no supplemental allowance payments will be made after the first day of the month in which he attains the Statutory Benefit Age. If an Employee entitled to receive a supplemental allowance has earnings after retirement in any calendar year (earnings for this purpose means salary, wages and income from employment including self-employment), in excess of the YMPE, a penalty equal to double the amount by which such earnings exceed the amouot permitted shall be charged against each succeeding monthly supplemental allowance which he would otherwise be entitled to receive uotil the full amouot of such penalty is satisfied, it being uoderstood that penalties and charges herein shall be cumulative if appropriate. An Employee receiving a supplemental allowance may be required to certify whether his earnings have been in excess of the permitted amouot and to furnish verification of the amount of his earnings. Unless repaid by the Employee in a lump sum, any overpayments of a supplemental allowance made after an Employee incurred a penalty because of excess earnings in accordance with the Page

159 preceding paragraph shall be deducted from future monthly supplemental benefits payable to him under the Plan If a retired Employee has been receiving a pension under Section 1.05 and has been receiving supplemental allowance payments and on the basis of medical evidence satisfactory to the Company it is found that he is no longer Totally and Permanently Disabled and his seniority is restored, or if he is re-employed by the Company, he shall not thereby forfeit any right he may thereafter have to receive supplemental allowance payments if he thereafter retires under this Plan The monthly supplemental allowance payable in accordance with the other provisions of this Article IV shall be redetermined on the effective date of each increase to a Pensioner's life income benefits under the terms of the Plan. If, due to the election of the Surviving Spouse Option a member's total monthly pension after redetermination is less than the total pension payable immediately before, his redetermined supplemental allowance shall be increased by the amount of the difference If the total of the Employee's monthly pension under this Plan and his monthly supplemental allowance as computed above would exceed 70% of his fmal monthly base pay, his monthly supplemental allowance (but not other benefits payable under the Plan) shall be reduced to the extent required so that such other monthly pension benefits plus his supplemental allowance will equal 70% of his final monthly base pay. For this purpose, an hourly paid employee's final monthly base pay shall mean 173 1/3 times the hourly base rate in effect for him at the date of his retirement. Any applicable cost-of-living allowance shall be included in such computation, but overtime pay, shift differentials or other compensation's shall be excluded. Monthly benefits payable on or after October 1, 1980 to employees who retired with benefits commencing before that date shall not be limited as set out in this Section Page-26-

160 ARTICLEV Survivorship Benefits 5.01 Survivor Omion. Jn lieu of any monthly pension payable at date of retirement under Section 2.01, 2.02, 2.03, 2.04 or 2.05 of Article II, an Employee may elect under the rules of election set out in Section 5.04 of this Article V to receive a reduced monthly pension to provide that if his designated Spouse is living at his death after the election becomes effective a survivor benefit shall be payable to such Spouse for her life Reduced Employee Pension. The amount of the reduced monthly pension payable to an Employee who retires with benefits commencing on or after September 1, 2009 and who has effectively elected the survivorship option specified in Section 5.01 above, shall be determined by multiplying the monthly pension otherwise payable under the applicable Section of Article II by ninety-five percent (95%) if the Employee's age and his designated Spouse's age do not differ by more than 5 years (based on the difference in complete years between the birth date of the Employee and his Spouse); except that, for an Employee whose monthly life income benefits are subject to redetermination commencing with the month following the month he attains the Statutory Benefit Age in accordance with Section 2.02, the reduction shall be based on the monthly life income benefit payable to the Employee commencing with the month following the month he attains the Statutory Benefit Age. Such percentage shall be increased by one-half of 1 % (up to a maximum of one hundred percent (100%)) for each full year in excess of 5 years that the designated Spouse's age exceeds the Employee's age and shall be decreased by one-half of 1 % for each full year in excess of five years that the designated Spouse's age is less than the Employee's age Survivor Benefit. The survivor benefit payable to the surviving Spouse of a Pensioner who has made a survivor benefit election which becomes effective on or after September 1, 2009, and who dies thereafter, shall be a monthly benefit equal to 60% of the reduced amount of such Pensioner's monthly pension determined under Section 5.02 of this Article V; except that, the survivor benefit payable to the surviving Spouse of a retired Employee whose monthly life income benefits are subject to redetermination conunencing with the month following the month he attains Statutory Benefit Age as provided in Section 2.02, shall be based on the monthly life income benefit payable to the Pensioner commencing with the month following the month he attains Statutory Benefit Age Rules for Election. The election of a survivor benefit, except the Statutory Survivor Benefit payable in accordance with Section (b) of this Article V, shall be subject to the following rules: Page- 27 -