BETWEEN:

07 -i9'"7~ COLLECTIVE AGREEMENT

TERRACON UNDERGROUND LTD. (Hereinafter called the 'Employer')

-AND-

LABOURERS' INTERNATIONAL UNION of NORTH AMERICA, LOCAL 1081

(Hereinafter called the 'Union')

PERIOD COVERED: JANUARY 1, 2007 to DECEMBER 31, 2009

Article

I II Ill IV v VI VII VIII IX X XI XII XIII XIV Schedule A

TABLE of CONTENTS

Description

Recognition .............................................. . Union Security .......................................... . Management Rights ................................ .. Union Stewards ........................................ . Union/Management Grievance ................ . Grievance Procedure ............................... . Arbitration ................................................. . Union Representation ............................... . Schedule Summary .................................. . Productivity ............................................... . No Strike/No Lock Out... ............................ . Coffee and Lunch Break ........................... . Safety and Sanitation ................................ . Duration ..................................................... . Monetary .................................................... . Training Period .......................................... . Hours of Work & Overtime ......................... . Vacation Pay & Statutory Holiday Pay ....... . Travel Allowance ......................................... . Reporting Allowance ................................... . Payment of Wages ..................................... . Pension -Welfare- Training ....................... . Working Dues ............................................. .

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Page No.

3 3-4 4 5 5 5-6 6-7 7 7 7 8 8 8 9 10-11 12 12 12-13 13 13 13-14 14 14

THIS AGREEMENT made and entered into this_ day of _____ 2007.

WHEREAS the Company and the Union wish to make a common collective agreement, with respect to certain employees of the Company engaged in construction and to provide for and ensure uniform interpretation and application in the administration of the Collective Bargaining Agreement.

ARTICLE 1 -RECOGNITION Therefore, this agreement between the Union and the Company, signed by the accredited officials of both parties, has been mutually agreed upon and both parties as laid out will carry out the terms in letter and spirit. The agreement covers all employees of the Company engaged as construction labourers in road construction, sewer and watermain construction, structures, common excavation and building site preparation, etc., and all work incidental thereto on all construction projects within the Counties of BRANT, NORFOLK, WELLINGTON, DUFFERIN . and GREY and the REGIONAL MUNICiPALITY OF vVATERLOO, save and except non-working foreman and persons above thai rank, including office and clerical, engineering staff and permanent employees at the employers quarry, shop and plant operations.

ARTICLE II -UNION SECURITY 2.01 All employees covered by this agreement as a condition of continued employment must be and remain members in good standing of the Union.

2.02 The Employer will follow the following procedure when hiring employees covered by this agreement:

(A) The Employer will notify the Union of the names of regular employees recalled.

(B) The Employer agrees to call the Local Union for its supply of men. It is understood that if the Local Union is unable to provide qualified and competent men within twenty-four (24) hours, the Employer is free to hire such labourers, as is available. The Employer may recall former employees through the Union office. The Employer will notify the Union once per week of employees rehired or hired from other sources.

(C) New employees will make application for membership in the Union at the time of hiring, and will become and remain members of the Union in good standing as a condition of employment after having worked thirty (30) calendar days. A member in good standing will be defined for the purpose of this agreement to be an employee who falls under the terms of this agreement and whose Union initiation fee and union dues are not in arrears.

(D) The Employer, from time to time, shall train new employees in the construction trade. These employees shall be considered Apprentices. The parties hereto agree that use of Apprentices will be permitted and the ratio shall be one Apprentice for every ten regular employees hired. It is the intention of both parties that the said Apprentices shall be given training and guidance in the skills necessary to complete various construction tasks. The Employer shall lay off members who are still on this Apprentice rate before members who are getting 100% of their rate classification. The rates shall be as follows:

First 0-600 hours Second 600-1200 hours Third 1200 hours and over

Collective Agreemen(- Terracon Underground Ltd. and UUNA Local 1081

60% of Base Rate SO% of Base Rate 1 00% of Base Rate

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All new Apprentices who are not members of the Union and are hired on and after the signing of this agreement shall be considered probationary employees for the first ninety (90) calendar days of employment. As a condition of employment, the employee shall, within ninety (90) days of commencement of employment, become and remain a member of the Union and receive all benefits from the first day following the probationary period of employment and be subject to all conditions of this agreement.

2.03 During the lifetime of this agreement the Company agrees to deduct to the extent authorized in writing but not otherwise from the last pay cheque of each month, the monthly dues, annual assessment and initiation fees of each employee covered by this agreement and to remit such monies as deducted to the Local Union office not later than the fifteenth (15'h) day of the month following the date upon which such union dues, annual assessment and initiation fees were deducted. Such authorization will be in duplicate in accordance with Article 2.05.

2.04 The Union must supply the Company with applications for union membership and dues deduction authorization forms, which vvill be presented to all new employees on the day the new employee is hired. All completed copies of the applications for union membership cards will be forwarded to the Union on the fifteenth (15'h) and the thirtieth (30'h) day of each month to serve as notification of commencement of employment. Upon termination of employment of any employees, his dues' deduction authorization will be returned to the Union within five (5) working days. It is expressly agreed that the Union will save the Company harmless from all deductions it directs the Company to make under Article II.

2.05 When it is necessary to layoff or rehire employees who have been laid off, the employees will be selected on the basis of seniority in their job classification combined with qualifications and ability to perform the work assigned. This Article will only apply to those employees with five (5) years or more service with his Employer.

2.06 Employees will be granted leave of absence without pay to attend union conventions upon written application to the Company by the employee.

2.07 All references in the agreement to the masculine gender shall apply also to the feminine gender.

ARTICLE Ill - MANAGEMENT RIGHTS 3.0·J The Union agrees that it is the exclusive function of the Company:

A) To conduct its business in all respects in accordance with its commitments and responsibilities, including the right to manage the jobs, locate, extend, curtail or cease operations, to determine the number of men required at any or all locations, to determine the kinds and location of machines, tools and equipment to be used and the schedules of productions, to judge the qualifications of the employees and to maintain order, discipline and efficiency;

(B) To hire, discharge, classify, transfer, promote, demote, layoff, suspend or otherwise discipline employees, provided that a claim by an employee that he has been discharged without reasonable cause will be subject to the provisions of the Grievance Procedure.

(C) To make, alter from time to time and enforce reasonable rules of conduct and procedure to be observed by the employees. It is agreed that these functions will not be exercised in a manner inconsistent with the express provisions of this agreement.

Collective Agreement- Terracon Underground Ltd. and UUNA loca11 081

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ARTICLE IV- UNION STEWARDS 4.01 The Union will have the right to appoint or select a reasonable number of stewards to assist employees in presenting their grievance to the Company and supervise the administration of this agreement. The Union agrees that it will keep the Company supplied with a list of the stewards and officers and any changes that occur. The Company will not be obliged to recognize any stewards until it has been informed in writing of the name of the steward appointed.

4.02 The Employer agrees not to discriminate against shop stewards for performing their duties. It is understood that the steward's duties will in no way interfere with the progress of the work. The Union Steward will be one of the last two employees retained on the job by the Employer, provided he is competent and capable of performing the work, in the judgment of the management.

ARTICLE V- UNION/MANAGEMENT GRIEVANCE 5.01 It is understood that the Company may file a grievance with the Union and that if such complaint is not settled to the Company's satisfaction, it may be treated as a grievance and referred to arbitration in the same way as a grievance of an employee. Such grievances will be processed as Step #2 of the Grievance Procedure as set out in Article VI hereof.

5.02 A union policy grievance which is defined as an alleged violation of this agreement concerning all or a substantial number of employees in the bargaining unit, in regard to which an individual employee could not grieve, or in regard to which a substantial number of employees have signified an intention to grieve, may be brought forward in writing at Step #2 of the Grievance Procedure at any time within five (5) full working days after the circumstances giving rise to such grievance occurred, and if it is not settled at that stage, it may be processed to arbitration in the same manner as the grievance of an employee.

ARTICLE VI- GRIEVANCE PROCEDURE 6.01 Any differences, disputes or complaints arising over the interpretation or application of this agreement will be submitted in writing in triplicate on forms supplied by the Union and signed by the aggrieved employee. There will be an earnest effort on the part of both parties to settle such grievances promptly through the following steps. It is understood that an employee does not have a grievance until he has discussed the matter with his foreman and given him an opportunity of dealing with the complaint.

Step 1: Within five (5) working days after the circumstances giving rise to the grievance occurred or originated, the aggrieved employee will present his grievance orally or in writing to his supervisor at this step. The supervisor will give his decision within two (2) full working days.

Step 2: Within ten (10) working days following the decision in Step 1, the aggrieved employee(s) and/or an official or officials of the Union will meet with representatives of the Employer at which time the written record of the grievance will be presented. The decision will be given in writing within five (5) full working days following this meeting.

6.02 Failing settlement under Step 2 of any difference between the parties arising from the interpretation, administration, or alleged violation of this agreement including any questions as to whether a matter is arbitral, such differences may be taken to arbitration if received within ten (1 0) full working days after the decision in Step 2 is given, it will be deemed to have been abandoned.

Collective Agreement- Terracon Underground ltd. and UUNA local1081

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6.03 No complaint or grievance may be submitted or considered under the grievance procedure unless it has been presented within five (5) working days after the circumstances giving rise to the grievance occurred or originated.

6.04 However, the parties agree that this period will be extended to fifteen (15) days where an individual employee presents a grievance concerning wages.

6.05 Any complaint or grievance as to the interpretation or alleged violation of the provisions of this agreement arising directly between the Employer and the Union, affecting the Union or Employer as such, either party will have the right to file a grievance beginning at Step #2 of the grievance procedure as outlined above in Article V herein. Such grievances will conform to the provisions of this Article and if it is not resolved, may be processed to arbitration in the same way as the grievance of an employee.

6.06 A claim by an employee that he has been unjustly discharged will be treated as a grievance if a written statement of such grievance is lodged with the Employer within five (5) working days after the discharge is affected. Such special grievance may be settled under Dispute Procedure by:

(A) Confirming the Employer's action in dismissing the employee; (B) Reinstating the employee with full compensation for time lost; (C) By any other arrangement which may be deemed just and equitable.

6.07 It is expressly agreed that probationary employees will not have recourse to the grievance procedure unless the rates of pay and Pension and Welfare benefits of this contract are violated. A non-union probationary employee will not have any Pension and Welfare benefits paid on his behalf during the first thirty (30) working days of his employment unless to continue his employment beyond the thirty (30) worked days.

ARTICLE VII- ARBITRATION 7.01 When either party requests that a dispute be submitted to arbitration as herein before provided, it will notify the other party in writing by registered mail, and at the same time nominate an arbitrator. Within five (5) full working days after receipt of such notification, the other party will nominate an arbitrator, and failing to do so, the notifying party will have the right to request the Minister of Labour of the Province of Ontario to appoint such nominee. The two (2) Arbitrators so nominated will attempt to select by agreement a chairman within a period of five (5) full working days following the date of their appointment, and if unable to agree, they will request the Minister of Labour for the Province of Ontario to appoint a chairman.

7.02 No person may be appointed as an arbitrator who has been involved in an attempt to negotiate or settle a grievance.

7.03 No matter can be submitted to arbitration, which has not been properly carried through the proper steps of the Grievance Procedure.

7.04 The Arbitration Board will not be authorized to make any decision inconsistent with the provisions of this agreement, nor alter, modify, or amend any part of this agreement or to substitute any new provisions for any existing provisions.

7.05 The proceedings of the Arbitration Board will be expedited by the parties hereto, and the decision of the majority of such Board will be final and binding upon the parties hereto and the employees concerned. If there is no majority decision, the decision of the chairman will be final and binding.

Colle clive Agreement- Terracon Underground Lid. and UUNA local1081

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7.06 Each of the parties hereto will bear the expenses of the arbitrator appointed by it, and the parties will jointly bear the expenses for the chairman of the Arbitrator Board.

7.07 (A) The nature of the grievance, the remedy sought and the section or sections of the agreement which are alleged to have been violated will be set out in the written record of the grievance and may not be subject to change in later steps without the full agreement of the Union and the Company.

(B) In determining the time, which is allowed in the various steps, Sundays, and Holidays will be excluded and any time limits may be extended by agreement in writing or by mutual agreement.

(C) If advantage of the provisions of Article VI and VII hereof is not taken within the time limits specified herein or as extended in writing as set out above, the grievance will be deemed to have been abandoned and may not be reopened.

ARTICLE VIII- UNION REPRESENTATION 8.01 The Union representatives will, in the course of their duties, have access to the work, where possible, on which members of the Union are employed and the Employer will assist the Union representatives to obtain a pass to the premises where necessary. The Union representatives will first make their presence known to the Employer's most senior representative in the job offices. In no instance, however, shall they interfere with the progress of the work exceptio correct safety violations and then only after consultation and agreement with the Employer's representative to whom they first made their presence known.

8.02 The Union representative when on site will abide by all safety rules as stipulated in the appropriate safety acts or regulations.

ARTICLE IX - SCHEDULE RE: Holidays, Vacation Pay, Hours of Work, Overtime, Reporting Time, Welfare, Etcetera, and Classifications & Wages 9.01 Attached to this agreement is Schedule "A", covering holidays, vacation pay, hours of work, etcetera.

ARTICLE X - PRODUCTIVITY 10.01 The Union and the Employer recognize the mutual value of improving, by all proper and reasonable means, the productivity of the individual workman and both will undertake individually and jointly to promote such increased productivity. The Union agrees to assist the Company by all means in its power to secure skilled and necessary workmen.

10.02 The Union agrees that it will not involve the Employer in any dispute, which may arise between the Union and any other contractor and the employees of such other contractor. The Union further agrees that it will not condone a work stoppage or observe any picket line placed on a job site for jurisdictional purposes.

10.03 The Union and the Employer agree that, on an annual basis, the Employer requires the labour staff to be fully trained and updated with the latest safety procedures, productivity, and construction courses. Both the Union and the Employer will do the utmost in encouraging all members to take various courses throughout the construction layoff period.

Collective Agreement- Terracon Underground ltd. and UUNA Local1081

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ARTICLE XI - NO STRIKE OR LOCK OUT 11.01 During the term of this agreement, the Union agrees that there will be no strike and the Company agrees that there will be no lock out.

11.02 The words "STRIKE" and "LOCK OUT" in this agreement shall mean "STRIKE" and "LOCK OUT" as defined in the Ontario Labour Relations Act. The Company will have the right to discharge or otherwise discipline employees who take part in or otherwise instigate any illegal strike, picketing or slowdown (as defined in the Ontario Labour Relations Act) which interferes with the regular schedule of work.

11.03 The Union will not condone a work stoppage or observe any picket line placed on a job site for jurisdictional purposes.

11.04 When a work claim dispute arises between the Union, which is a party to this agreement and any other Union, person, or organization, which cannot be settled to the satisfaction of all parties concerned~ the parties agree that the Ontario Labour Relations Board is the proper tribunal to vvhich to refer such disputes for settlement.

ARTICLE XII -COFFEE & LUNCH BREAK 12.01 Employees are entitled to one coffee break often (10) minutes at a reasonable time during each half-day, having regard to the starting time and lunchtime of the employees.

12.02 Employees will be entitled to a lunch break of not less that one-half (Y>) hour, to be taken at a reasonable time during his work shift, but no later that six (6) hours of commencement of said shift. Where overtime work has been prescheduled, provisions will be made for a coffee or lunch break.

12.03 The Employer will provide, where site conditions reasonably permit, a proper and adequate place of shelter sufficiently heated and securely locked in which the employees may eat their lunch and store their clothing. It is clearly understood that either party will not abuse the shelter area by improper use such as the storage of materials, equipment and tools.

ARTICLE XIII- SAFETY & SANITATION 13.01 The Employer, the employees and the Union agree to abide by the prov1s1ons of the Occupational Health and Safety Act, including the provisions to supply fresh drinking water, and to provide sanitary facilities within close proximity to the work area, with flush toilets where practicable.

13.02 Both the Union and the Company recognize the responsibility and necessity of promoting safety on each job site. The Union will endeavor to instill in its membership a safety conscious work attitude and the Company will endeavor to make all supervisory personnel aware of all safety regulations and endeavor that the same are carried out to the full intent of this Article.

13.03 Every employee will, as a condition of employment, be required to own and wear approved safety helmet, protective footwear, and other personal protective equipment required in the normal course of his duties. The Company will provide employees with such additional protective and wet weather clothing as is reasonable and necessary. The Union recognizes the right of the Company to supervise the distribution of the clothing provided.

13.04 The trucks to be used to transport employees will be enclosed and tools will be secured in toolboxes. No materials will be carried in the trucks in a manner endangering the safety of the employees being transported.

Gollecllve Agreement- Terra con Underground Ltd. and LIUNA Local 1081

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ARTICLE XIV- DURATION OF AGREEMENT 14.01 This agreement shall continue in effect until the 31'1 day of DECEMBER 2009 and will continue in force from year to year thereafter unless either party will furnish the other with the notice of termination and/or proposed revision of the agreement, not more than NINETY (90) days and not less than THIRTY (30) days before the 31'1 day of DECEMBER 2009, or in a like period in any year thereafter.

14.02 The parties agree that Schedule "A", attached hereto, is incorporated into and forms part of this Collective Agreement.

FOR THE COMPANY FOR THE UNION

Collective Agreement- Terracon Underground Ltd. and LIUNA Local1081

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SCHEDULE "A"

GROUP IA- Traffic Controller/Fia )person Effect. Date Hourly Vac. Pension Health & Training Total Pkg. Work OPDC

Rate Pay Welfare Dues 16 JUL 2007 17.14 1.71 2.60 2.25 0.05 23.75 3% 0.25

01 MAY 2008 17.36 1.74 2.80 2.35 0.05 24.30 3% 0.35

01 AUG 2008 17.86 1.79 2.80 2.35 0.05 24.85 3°/o 0.35

01 MAY 2009 18.14 1.81 3.00 2.45 0.05 25.45 3% 0.35

01 AUG 2009 18.64 1.86 3.00 2.45 0.05 26.00 3% 0.35

GROUP IB- Labourers including ump man (6" discharge & under) for dewaterinq systems Effect. Date Hourly Vac. Pension Health & Training Total Pkg. Work OPDC

Rate Pay Welfare Dues 16 JUL 2007 22.05 2.20 2.60 2.25 0.05 29.15 3% 0.25

01 MAY 2008 22.27 2.23 2.80 2.35 0.05 29.70 3% 0.35

01 AUG 2008 22.77 2.28 2.80 2.35 0.05 30.25 3% 0.35

01 MAY 2009 23.05 2.30 3.00 2.45 0.05 30.85 3% 0.35

01 AUG 2009 23.55 2.35 3.00 2.45 0.05 31.40 3% 0.35

GROUP II -Skilled Labourer, Formsetters, concrete finishers on curbs, gutters, sidewalks, culverts, concrete . h I I h b t r h It k . I d pavmq, man o e, va ve c am er, cons rue 10n asp1 a ra er, p1pe av er, qra eman

Effect. Date Hourly Vac. Pension Health & Training Total Pkg. Work OPDC Rate Pay Welfare Dues

16 JUL 2007 22.62 2.26 2.60 2.25 0.05 29.78 3% 0.25

01 MAY 2008 23.07 2.31 2.80 2.35 0.05 30.58 3% 0.35

01 AUG 2008 23.57 2.36 2.80 2.35 0.05 31.13 3% 0.35

01 MAY 2009 24.03 2.40 3.00 2.45 0.05 31.93 3% 0.35

01 AUG 2009 24.53 2.45 3.00 2.45 0.05 32.48 3% 0.35

G ROUP III L b t t - a ourers on s rue ures, cur b mac me man d n ers, pow erman Effect. Date Hourly Vac. Pension Health & Training Total Pkg. Work OPDC

Rate Pay Welfare Dues 16 JUL 2007 23.62 2.36 2.60 2.25 0.05 30.88 3% 0.25

01 MAY 2008 24.07 2.41 2.80 2.35 0.05 31.68 3% 0.35

01 AUG 2008 24.57 2.46 2.80 2.35 0.05 32.23 3% 0.35

01 MAY 2009 25.03 2.50 3.00 2.45 0.05 33.03 3% 0.35

01 AUG 2009 25.53 2.55 3.00 2.45 0.05 33.58 3% 0.35

Collective Agreement- Terracon Underground Ltd. and UUNA Local 1081

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GROUP IV - Formsetters, rebar installers fi concrete mishers on brid> e retaining walls Effect. Date Hourly Vac. Pension Health & Training Total Pkg. Work OPDC

Rate Pay Welfare Dues 16 JUL 2007 24.85 2.48 2.60 2.25 0.05 32.23 3% 0.25

01 MAY 2008 25.30 2.53 2.80 2.35 0.05 33.03 3% 0.35

01 AUG 2008 25.80 2.58 2.80 2.35 0.05 33.58 3% 0.35

01 MAY 2009 26.26 2.62 3.00 2.45 0.05 34.38 3% 0.35

01 AUG 2009 26.75 2.68 3.00 2.45 0.05 34.93 3% 0.35

GROUP V - Form builders on structures Effect. Date Hourly Vac. Pension Health & Training Total Pkg. Work OPDC

Rate Pay Welfare Dues 16 JUL 2007 25.88 2.59 2.6U 2.25 0.05 33.37 3% 0.25

01 MAY 2008 26.34 2.63 2.80 2.35 0.05 34.17 3% 0.35

01 AUG 2008 26.84 2.68 2.80 2.35 0.05 34.72 3% 0.35

01 MAY 2009 27.29 2.73 3.00 2.45 0.05 35.52 3% 0.35

01 AUG 2009 27.79 2.78 3.00 2.45 0.05 36.07 3% 0.35

Note A: Employees designated by the Company as a Lead Hand shall be paid a premium of FIFTY­FIVE ($0.55) cents per hour above the basic hourly rate of the highest labour classification in the crew.

Note 8: Employees designated by the Company as a Working Foreman shall be paid a premium of EIGHTY-FIVE ($0.85) cents per hour above the basic hourly rate of the highest labour classification in the crew.

Note C: It is understood and agreed that the implementation of the above wage schedule shall not result in the reduction of the hourly rate of any present employee of the Company.

Note D: It is understood and agreed that employees in Group lA will not be employed in other groupings in this schedule at Group lA rates.

Note E: Labourers employed on STRUCTURE REPAIRS WORK will be paid the wage rate of their appropriate classification and not the wage rate under the classification of Group Ill for the term of this Agreement.

CollectiVe Agreement- Terracon Underground Ltd. and UUNA Local1081

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TRAINING PERIOD The Union and the Company agree that at the discretion of the Company there may be a learning period for all skilled labourers, not to exceed SIXTY (60) days of work, when an employee is placed in a new classification by the Company, during which time such trainees may be paid not less than the GROUP IB rate specified in the agreement

However, in no case will an employee being promoted to a higher classification be paid at a rate less than the rate he is being promoted from during the training period.

HOURS OF WORK & OVERTIME The following sections and paragraphs are intended to define the normal hours of work, for the purpose of calculating overtime only, and will not be construed as a guarantee of hours of work per day or per week, or of days or work per week.

(A) The regular working hours for employees covered by this agreement will be TEN (1 0) hours per day and FIFTY (50) hours per week, to be worked between the hours of 07:00am and 06:00pm, MONDAY to FRIDAY. Hours of work to exclude lunch periods and travel time to and from the job site.

(B) A shift premium of ONE DOLLAR ($1.00) per hour will be paid for hours worked on any shift, which is scheduled by the Employer to commence after 06:00pm.

(C) The time worked in excess of the regular working hours per day, per week, work performed on SATURDAYS and the following Statutory Holidays, will be paid at the rate of TIME and ONE HALF (1 Y:.) the employees' regular hourly rate.

New Years Day Civic Holiday

Family Day Labour Day

Good Friday Thanksgiving Day

Victoria Day Christmas Day

Canada Day Boxing Day

Time lost due to inclement weather will be made up on SATURDAY at straight time rates. Premium pay will not be pyramided, but will be applied only once to any hour(s). The Employer will not discriminate against any employee because of failure to work on Saturdays.

(D) Overtime at the rate of DOUBLE the employee's regular hourly rate will be paid to all employees for all worked performed on SUNDAY.

(E) It is agreed that where employees are engaged on emergency work, snow removal, and sanding, overtime rates will not apply. It is expressly agreed that off site snow removal and sanding operations are excluded from the terms of this agreement

(F) If any of the statutory holidays fall on a SATURDAY or SUNDAY, such holidays will be observed on the day or day's immediately following or proceeding the weekend.

VACATION PAY & STATUTORY HOLIDAY PAY Vacation and Statutory holiday credits will be paid to employees covered by this collective agreement at the rate of TEN PERCENT (10%) of the gross wages earned. It is understood and agreed that FOUR PERCENT (4%) of the gross wages earned is to be considered payment in lieu of statutory holiday. It is further understood and agreed that Vacation Pay and Statutory Holiday Pay will be paid to the employees on each weekly/bi-weekly pay or as previously agreed by both parties in two installments, the first within the first three weeks of JULY and the second within the first two weeks of NOVEMBER.

Collective Agreement- Terra con Underground ltd. and LIUNA Local1081

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An employee who is terminated for any reason will receive vacation and statutory holiday pay credits owing to the date of termination. The foregoing does not apply to laid off employees, unless they are laid off for thirty (30) or more consecutive days and request this credit.

TRAVEL ALLOWANCE For the purpose of determining the amounts of travel allowance payable to an employee required to use his own transportation to travel to and from work, the agreement area will be compromised of four zones. The centre of Zone 1 will be established as the company's home base.

ZONE 1: This zone will be comprised of an area included in a radius of forty (40) kilometers. No travel allowance will be payable in Zone 1.

ZONE 2: This zone will be comprised of the area outside Zone 1 and included within the radius of seventy (70) kilometers. A travel allowance of EIGHTEEN dollars ($18.00) per day will be paid to employees required to use their own transportation !o !ravei to and from jobs located in Zone 2.

ZONE 3: This zone will be comprised of the area outside of Zone 2 and included within a radius of one hundred (1 00) kilometers. A travel allowance of TWENTY-FOUR dollars ($24.00) per day will be paid to employees required to use their own transportation to travel to and from jobs located in Zone 3.

ZONE 4: This zone will be comprised of the area outside of Zone 3. A travel allowance of THIRYTY­TWO dollars ($32.00) per day will be paid to employees required to use their own transportation to travel to and from jobs located in Zone 4.

A project intersected by the forty (40) kilometer radius will be included in Zone 1, a project intersected by the seventy (70) kilometer radius will be included in Zone 2, and a project intersected by the one (100) kilometer radius will be included in Zone 3.

Employees required to be away from their regular place of residence will be provided with suitable room and board and the Employer agrees there will be no more than two (2) employees per room.

The above allowances will not apply where the company provides transportation or room and board.

REPORTING ALLOWANCE An employee who reports to work at the regular starting time, unless directed not to report, and for whom no work is available, including inclement weather, will receive two (2) hours pay, provided he remains at the job if requested to do so by his supervisor.

An employee who starts his regular shift at the job site, and who has worked more than two (2) hours will receive four (4) hours pay if the job is shut down by the Employer before he has had time and opportunity to work for four (4) hours provided he remains at the job if requested to do so by his supervisor.

PAYMENT OF WAGES Wages will be paid weekly or biweekly on a following Thursday or Friday after closing the time books by cash, cheque or Electronic Fund Transfer (EFT), at the option of the Employer. In the event that wages are paid by cheque on a following Friday, then the employee will, if he requests, be given time off to cash his pay cheque. Accompanying each payment of wages will be a statement showing his hourly

Colleclive Agreement- Terracon Underground Ltd. and UUNA Loca! 1081

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rate, hours worked, overtime, total earnings, and deductions. In the event of a layoff, employees will receive their cheque and separation slip on day of layoff if possible, but no later than seventy-two (72) hours from day of layoff, excluding SATURDAYS and SUNDAYS·.

PENSION-WELFARE-TRAINING The Company agrees to pay the following rates for each hour worked by employees represented in the Collective Agreement by Local 1081, Labourers' International Union of North America, into the Labourers' Pension Fund of Central and Eastern Canada.

July 16, 2007 $2.60 May 1, 2008 $2.80 May 1, 2009 $3.00

The Company further agrees to pay the following rates for each hour worked into the Labourers' Multi Local Welfare Trust Fund of Ontario for each employee covered by the collective agreement.

July 16, 2007 $2.25 May 1, 2008 $2.35 May 1, 2009 $2.45

The Company agrees to pay five cents ($0.05) per hour worked into the training fund for each employee covered in the collective agreement. Funds to be paid to LIUNA Local 1081 Training Trust Fund, and submitted with the contributions report, on a separate cheque.

Contributions into the Pension Fund and Welfare Fund shall be made prior to the fifteenth (15'h) day of the month following the month in which such hours were worked and shall be accompanied by a remittance report for each employee on the form prescribed by the Board of Trustees of the Fund.

Any provincial or federal taxes required to be paid by the Employer on contributions under this agreement, are not included in the specified amounts set out herein. The Employer shall pay provincial retail sales tax on contributions to the members' Benefit Fund and remit such taxes to the said Fund, together with the contributions on which such tax is paid.

WORKING DUES The Employer agrees to deduct from the base rate of each employee covered by the agreement, Local Union working dues equivalent to three percent (3%) per hour for each hour worked by him and remit this amount together with a list of the names, social insurance number of said employees, and the number of hours worked by them, and base rate earned, to L.I.U.N.A. Local 1081, no later than the fifteenth (151

h) day of the month following the month in which they are due.

The Employer also agrees to deduct from the base rate of each employee covered by the agreement, Ontario Provincial District Council (OPDC) working dues in the amount of twenty-five cents ($0.25) upon ratification and at May 1, 2008 increase to the OPDC working dues to thirty-five cents ($0.35), and remit to The Labourers' Pension Fund of Central and Eastern Canada no later than the fifteenth (151h) day of the month following the month in which they are due.

It is agreed that the Company may use the welfare contribution forms with respect to the remittance of the working dues and informaf1on therein required.

It is further agreed that the Union shall save the Company harmless for all deductions for union dues that the Employer makes and remits to the Union.

Collective Agreement- Terracon Underground Ltd. and UUNA Local 1081

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