MANUFACTURING AGREEMENT

For

BESOMAR (Hereinafter referred to as the "Employer")

and

THE INTERNATIONAL BROTHERHOOD OF BOILERMAKERS, IRON SHIP BUILDERS, BLACKSMITHS, FORGERS AND

HELPERS, LOCAL LODGE 128 (Hereinafter referred to as the "Union")

ARTICLE 1- RECOGNITION AND PURPOSE

1.1 Recognition The Employer recognizes the Union as the sole collective bargaining agency for its employees in its fabricating plant.

This agreement shall not apply to Timekeepers, Engineers, Sales, Office and Clerical Workers, Foreman and persons above the rank of Foreman. This agreement shall not apply to employees employed on Boilermaker Field Construction.

1.2 Purpose

The purpose of this agreement is to govern wages and working conditions so as to promote orderly harmonious relations between the Employer and its employees, and the union agrees to co-operate with and assist the Employer in every legitimate way to conduct a successful business, bearing in mind that both parties must give service to the public.

ARTICLE 2- MANAGEMENT RIGHTS

2.1 It is the Employers right to operate and manage its business in all respects in accordance with its responsibilities and commitments. The location of jobs, the choice of equipment, the schedules of manufacturing, the methods and means of manufacture are solely and exclusively the responsibility of the Employer.

2.2 The Employer has the right to make and alter from time to time, rules and regulations to be observed by its employees, provided that they are not inconsistent with this agreement.

2.3 It is an exclusive function of the Employer to hire, promote, demote, transfer, suspend, discipline, or discharge for cause employees in the bargaining unit, subject to

the provisions of the agreement. All promotions, demotions and supervisory personnel to be posted on the bulletin board.

2.4 Nothing in this article shall be interpreted to prejudice other unspecified rights of Management.

ARTICLE 3 - UNION SECURITY AND CHECK-OFF

3.1 The Employer agrees that all employees covered by this agreement who are members of Lodge 128 shall maintain their membership in said Lodge in accordance with the Brotherhood's Constitution during the life of this agreement as a condition of employment, and that all new employees must become members of Lodge 128 within sixty (60) calendar days from the start of employment and remain members during the life of this agreement.

3.2 The Employer shall deduct from the first pay period of each month Union Dues covering all employees coming within the scope of this agreement, also Initiation Fees and or Reinstatement Fees covering new employees and promptly remit same together with a list of names of the employees whose Union Dues, Initiation Fees or Reinstatements are so deducted, to the Secretary of the Local Union. The Union shall notify the Employer of the amount fixed as monthly Union Dues, Initiation and Reinstatement Fees. The Company shall also deduct one half of one percent (112%), (Shop Dues Assessment) of the hourly wages. To be deducted weekly and submitted monthly along with the monthly due check-off.

ARTICLE 4 - REPRESENTATION

4.1 For the purpose of carrying out the provisions of this agreement, the Employer shall deal only with the accredited Representatives of the Union. The Employer recognizes the right of the Union to appoint or otherwise select from amongst the Employer's Unionized employees, Shop Stewards whose duties will be to assist the Employer and the Union in carrying out the provisions of this agreement.

ARTICLE 5 - SENIORITY

5.1 a) Ability to perform the work required shall govern when forces are reduced or on recall to work.

b) Seniority shall be defined as length of continuous service in the employment of the Employer. Employees must be employed by the Employer for sixty (60) calendar days in order to establish seniority.

c) Seniority in the classification where the employee is employed shall govern lay­off. Seniority in the classification where there is a recall shall also govern.

d) If two (2) employees have the same day seniority in the classification on lay-off or

recall, the ability shall govern.

e) Employees laid off shall retain their seniority for six (6) months after which the

employee will lose all seniority rights. A laid off worker must return to work within

three (3) working days of notice.

f) An employee shall not suffer loss of seniority because of sickness, accident

or authorized leave of absence or Union duty.

g) Separate lists of seniority dates shall be supplied once a year to the Shop Steward, and

posted on the bulletin board. If there are no objections after five (5) working days, the

list shall stand as posted.

h) The Employer shall confer with the Shop Steward on lay-off or recall to make sure

there is no mistake. A two (2) day period shall be given in each case to check the lists.

ARTICLE 6- SCOPE OF THE AGREEMENT

6.1 The wage rate and working conditions contained in this agreement shall apply to all

work performed by the Employer in their shops.

ARTICLE 7 - GRIEVANCE PROCEDURE

It is the mutual desire of the parties hereto that complaints of employees shall be adjusted

as quickly as possible, and it is understood that an employee has no grievance until he

has first given his Foreman or Supervisor an opportunity to adjust his complaint.

If an employee so desires he may request the assistance of his Steward in order to

endeavor to settle his complaint with his Foreman or Supervisor. Should the complaint of

the employee not be satisfactorily adjusted within forty-eight ( 48) hours, it shall be

reduced to writing and may then become the subject for discussion as provided for in the

following paragraph.

The grievance shall be discussed at a meeting between the Local or International

Representative of the Union and the Employer. If the grievance is not then settled to the

satisfaction of both parties within a reasonable period oftime, then at the request of

either party to this agreement, it shall be referred to Arbitration in accordance with the

Ontario Labour Relations Act.

ARTICLE 8-HOURS OF WORK

8.1 Eight (8) hours per day, 8:00a.m. to 12:00 noon and 12:30 p.m. to 4:30p.m. five (5)

days per week, shall constitute a normal day' s work.

8.2 Forty ( 40) hours shall constitute a normal weeks work, Monday to Friday inclusive. Working hours may be changed only by mutual consent of the Employer and the Union.

8.3 Any employee reporting to work at this regular starting time, or called in at any time other than his regular time, shall be guaranteed a minimum of four ( 4) hours work, or pay in lieu of work, at his regular rate of pay for that day.

ARTICLE 9 - SHIFT WORK

9.1 Employees required to work afternoons or midnight shift shall receive an additional ten (1 0%) percent of their hourly rate.

9.2 The employees working on second or third shift must continue for a period of three (3) consecutive working days to constitute shift work. In the event an employee does not receive three (3) consecutive shifts, said employee shall be compensated at the applicable overtime rates.

9.3 Where shift is being worked and where possible, each employee shall change shift every month but if an employee is on a second or third shift and elects to stay on that shift he may do so.

9.4 Shift premium shall apply on all hours worked on second and third shifts at the rates provided, also on Saturday, Sunday and Holidays provided for in this agreement.

9.5 When an employee is required to return to work without an eight (8) hour break, all work performed shall be paid for at the applicable overtime rate, until such time as the employee receives an eight (8) hour break.

ARTICLE 10-0VERTIME

10.1 For work performed after the normal working day, Monday to Friday inclusive, the first two (2) hours shall be paid at one and one-half (11 /2) times the hourly rate and subsequent hours shall be paid at two (2) times the hourly rate. Work performed on Saturday and Sunday shall be paid at two (2) times the hourly rate. The preceding overtime rates are based on overtime being charged to the Employer's account. When overtime is being charged to a Client's account of the Employer, then all overtime worked will be paid at two (2) times the hourly rate.

10.2 If an employee is required to work on one of the paid Holidays he shall be paid two (2) times the hourly rate for the hours worked.

10.3 When overtime extends beyond two (2) hours after the close of a regular working shift, the employee working shall be provided with a meal paid for by the Employer and a thirty (30) minute meal break paid for at the applicable overtime rate. If overtime work is to extend beyond an additional four (4) hours, the employees will be provided with another meal paid for by the Employer and a thirty (30) minute meal break paid for at the

applicable overtime rate. Additional meals will be provided after each subsequent four (4) hour period with a limit of eleven dollars ($11.00) per meal on all meals.

ARTICLE 11- VACATION PAY

11.1 All employees shall be paid vacation pay weekly on their gross earnings as outlined below;

LENGTH OF CONTINUOUS SERVICE WITH EMPLOYER

0 to I year 4%

1 year to 3 years 6%

3 years to 4 years 8%

Over 4 years 10%

ARTICLE 12 - PAID HOLIDAYS

12.1 The following Holidays, ten (1 0) days and two (2) half days, as indicated below shall be paid for at the rate of four percent ( 4%) of gross wages for all hours worked including overtime and shift premium.

New Years Day Good Friday Victoria Day Dominion Day Civic Holiday Labour Day

Thanksgiving Day Remembrance Day 1/2 Day Before Christmas Day Christmas Day Boxing Day 1/2 Day Before New Years Day

A new employee will not be paid holiday pay until he has completed sixty (60) days employment with the Employer.

12.2 Should any of the above holidays fall on a day outside the normal work week, i.e. Monday to Friday inclusive, the day observed shall be classed as the Statutory Holiday and be paid for at the applicable overtime rates.

12.3 An employee must be at work the first working day of a scheduled shift before a Holiday or scheduled shift after to be paid for the Holiday, unless absent for just cause. The employee may be disciplined unless he gives the Employer twenty-four (24) hours notice to the Holiday.

ARTICLE 13-JURY DUTY

13.1 If an employee is absent from work because of his having to serve on a Jury, he shall be paid the difference between the pay for each Jury duty and his regular pay for the duration of such absence.

ARTICLE 14-BREAK PERIODS

14.1 There shall be two (2) break periods often (1 0) minutes each per shift, and five (5) minutes wash up time before lunch and at the end of the shift.

14.2 The Foreman and Steward will supervise the break period.

ARTICLE 15- HEALTH AND WELFARE

15.1 The Employer and Employees have obtained a mutually agreeable insurance policy to provide long and short term disability, dental, drug and life coverage for the employees.

15.2 Protective Clothing

a) All employees after six (6) months seniority shall qualify for one hundred dollars ($100.00) per year to be applied against safety footwear. On June 1 5', 2011 this amount is to increase to one hundred and twenty dollars ($120.00) per year. If the employee is terminated before payout, eight dollars and thirty three cents ($8.33) per month since the last payout shall be applied to his termination pay. Ten dollars ($1 0.00) per month after June 1 5', 2011.

b) Coveralls to be supplied when needed at no cost to the employees. Coveralls to be cleaned once a week at no cost to the employees.

c) Gloves to be supplied to all employees as required and welding gloves or gauntlets as required for welders and burners.

ARTICLE 16- BOILERMAKERS NATIONAL PENSION FUND (CANADA)

16.1 The Employer shall contribute to the Boilermakers National Pension Fund (Canada) the amount of three dollars and seventy-five cents ($3.75) per hour for all hours worked by all employees covered by this agreement. This amount will increase to four dollars and five cents ($4.05) in the second year and to four dollars and thirty-five cents ($4.35) in the third year. All contributions will be doubled for overtime hours worked.

ARTICLE 17- NO STRIKES OR LOCK-OUTS

17.1 The Union agrees that there will be no strikes or other collective action which will stop or interfere with production, and if any such collective action should be taken, it will instruct those of its members who participated in such collective action to carry out the provisions of this agreement and return to work in a manner acceptable to the Employer. The Employer agrees that it will not cause or direct any lock-outs of its employees.

ARTICLE 18-BEREAVEMENTPAY

18.1 Upon the death of a Father, Mother, Spouse, Brother, Sister, or Child, Mother-in-law or Father-in-law the employee shall be granted two (2) days leave of absence with pay, provided they are working days. The days are to include the day ofthe funeral and the one day immediately preceding the of the funeral or the day after.

18.2 The above clause to be effective only if the funeral is attended. Proof of attendance rests with the employee and such proof may be requested by the company.

ARTICLE 19-RATES OF WAGES AND CLASSIFICATIONS

Wages shall increase three percent (3%) in the first year, three (3%) in the second year and three percent (3%) in the third year. Rates for the period of June 15

\ 2014 to May 31 5\ 2017.

June 1 June 1 June 1 2014 2015 2016

Quality Control Mechanic AI Welder A $24.54 $25.28 $26.03

MechanicB $2 1.74 $22.39 $23.06

WelderB $21.15 $21.79 $22.44

Machinist $20.57 $21.19 $21.83

Helper A $15.02 $15.47 $15.94

HelperB $13.82 $14.23 $14.66

ARTICLE 20- LENGTH OF CONTINUOUS SERVICE

20.1 Length of continuous service shall be dated from the employees were originally hired and not from upon the signing of the contract.

ARTICLE 21 -DURATION AND RENEWAL OF AGREEMENT

21 .1 This agreement shall become effective June 1, 2014 and shall remain in full force and effect until May 31 , 2017 and year to year thereafter unless either party shall, at least thirty (30) days prior to any anniversary date thereafter, notify the other party of this agreement in writing of any proposed changes to this agreement.

21.2 Any such notice shall be specific as to the sections ofthe agreement to be affected thereby and negotiations shall be limited to such sections. In the event such notice is given, the parties shall meet not later than fifteen (15) days after receipt of such notice, and shall conclude negotiations without unnecessary delay.

SIGNED FOR THE COMPANY:

BESOMAR

U:S/Sjb

SIGNED FOR THE UNION:

THE INTERNATIONAL BROTHERHOOD OF BOILERMAKERS, LOCAL 128 ONTARIO

Dalas Santay, Shop Representative & Organizer