COLLECTIVE AGREEMENT

BETWEEN:

SKYLINE HOTELS AND RESORTS INC. c.o.b. as THE COSMOPOLITAN HOTEL TORONTO

“The Company/Employer”

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UNITED FOOD AND COMMERCIAL WORKERS INTERNATIONAL UNION, LOCAL 333

“The Union”

Term: April 18, 2011 to June 30, 2016

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Article 1 – Purpose 1.01 The general purpose of this Agreement is to establish and maintain a mutually satisfactory relationship between the Union, the Company and the employees represented by the Union 1.02 The purpose of this Agreement is also to establish and maintain working conditions, hours of work and wages with respect to employees covered by the Agreement and to provide for the efficient operation of the Hotel, and to provide for a prompt and orderly method of settling complaints or grievances which might arise. Article 2 – Recognition and Scope 2.01 The Company recognizes that the Union is the sole and exclusive bargaining agent for all employees of Skyline Hotels and Resorts Inc, c.o.b. as the Cosmopolitan Hotel Toronto at 8 Colborne Street, Toronto, Ontario, save and except supervisors, persons above the rank of supervisor, managers, accounting, Night Auditors, office and sales staff, Sous Chef, Executive Chef, Spa employees, security staff and Reservations Agents. 2.02 Any changes or amendments to this Agreement during its term shall be incorporated only with mutual agreement, in writing, between the Company and the Union. 2.03 Terms importing the singular shall be deemed to include the plural unless the context requires otherwise. 2.04 It is understood that the use of the masculine gender shall apply equally to the feminine gender. 2.05 The term “employee” or “employees” means an employee employed within the bargaining unit for which the Union is recognized as described in 2.01:

a) “Full-time employee” means an employee employed in the bargaining unit who regularly works twenty-four (24) hours or more per week.

b) “Part-time employee” means an employee employed in the bargaining unit who regularly works less than twenty-four (24) hours per week.

2.06 The Company agrees that employees who are not bargaining unit members will not perform bargaining unit work, except for the following reasons and only if it becomes necessary: a) Training and experimentation including technological change b) Emergency situations c) Lack of availability of bargaining unit employees d) Unforeseen circumstances. Article 3 – Management Rights

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3.01 Except as and to the extent specifically modified by the Agreement, all rights and prerogatives of management are retained by the Company and remain exclusively within the rights of the Company and its management. Without limiting the generality of the foregoing, the Company’s rights shall include:

(a) maintain standards, order, discipline, and efficiency; (b) hire, assign, direct, schedule, promote, demote classify, transfer, layoff, recall, discharge or otherwise discipline employees for just cause; (c) determine the nature and kind of business conducted by the Company, determine the location and type of operation, and the methods and techniques of work, the schedules of work, the number of personnel to be employed in a manner consistent with the terms of this agreement, the operation of any particular job within the operation, make studies of or institute changes in jobs and job assignments, discontinue, re-organize, limit, combine, substitute any operation or part thereof, determine job qualifications, hours of work, shifts, work performance levels and standards of performance, the methods of evaluation of employees, and all other functions and prerogatives hereinbefore invested in and exercised by the Company shall remain solely with the company; (d) make and enforce and alter from time to time rules and regulations to be observed by the employees; (e) discipline or discharge a probationary employee for any reason satisfactory to the Company.

The Company’s exercise of these exclusive rights in one manner or another, or the non-exercise of such rights, in no way circumscribes the exercise of such rights in the future. 3.02 It is agreed that the exercise of these rights in a manner which conflicts with the express provisions of this collective agreement may be subject to the grievance procedures contained herein. The Company must exercise its rights fairly, in good faith and without discrimination and subject to the terms and conditions of this agreement, as a whole. Article 4- Relationship and Labour Management Meetings 4.01 The Company agrees there shall be no discrimination of employees in accordance with the Ontario Human Rights Code. 4.02 The Company and the union agree that there will be no intimidation, discrimination, interference, restraint or coercion exercised or practised by either of them or their representatives because of an employee’s membership or non-membership in the union or because of his activity or lack of activity in the union. 4.03 Representatives of the Union shall contact the HR department and/or GM of the company in advance to notify that he/she will enter the Company’s premises during normal business hours to talk with employees and deal with the administration of the collective agreement. Such requests shall not be unreasonably withheld recognizing they will be timed to cause as little disruption as possible to the normal conduct of the Company’s business. 4.04 Labour Management Meetings On the request of either party, the Company and the Union agree to set up a Labour/Management meeting with the shop stewards every 3 months. The Company will make a room available for these Labour/Management meetings. 4.05 Union dues and Initiation fees All employees covered by this Agreement as described in paragraph 2.01 who are currently

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members of the Union, must remain members and all new employees must join the Union upon completion of their probationary period. The Company shall deduct Union dues and shall deduct initiation fees on behalf of the Union from the first pay of all new employees. Article 5 – Check-Off of Union Dues 5.01 During the lifetime of this Agreement, the Company shall deduct from the pay of all employees covered by this Agreement, on each pay period, such amount as may be uniformly assessed by the union constitution and by-laws as regular Union Dues, and shall remit the same, prior to the tenth (10

th) day of the following month for which the deductions are being made to the

Financial Secretary of the Union. It is understood that such deductions are to be made on a bi-weekly basis in equal amounts. The said sums shall be accepted by the Union as the regular monthly dues of those employees who are or shall become members of the Union. 5.02 The deductions shall be accompanied by an alphabetical check-off list which will provide each employee’s name, current address, social insurance number and dues deduction. 5.03 The Company agrees to furnish the following information to the Union, upon request of the Union but not more than four (4) times each calendar year:

(a) new hires, classification (b) discharges (c) resignations (d) layoffs (e) recalls

5.04 The Union shall inform the Company, in writing, of all authorized deductions to be made. The Company will be notified, in writing, of any changes in the amount of the dues. Such changes shall become effective not earlier than the commencement of the month following the notification received by the Company. 5.05 The Company agrees to record the total Union dues paid by each employee on his T-4 Tax Receipt. 5.06 The Union agrees to indemnify and save the Company harmless against all claims or other forms of liability that may arise out of, or by reason of, deductions made or payments made in accordance with this Article. 5.07 The Company will not be responsible for the collection of any dues where, because of absence from work, the employee has no earnings from which dues required may be deducted. Article 6 – Representation 6.01 The Company acknowledges the right of the Union to appoint or otherwise elect shop stewards, and a Chief Steward if the Union so decides, who have completed their probationary period in any of the classifications or departments covered by this Agreement, for the purpose of assisting employees in the presentation of grievances to the Company in accordance with the provisions of this Agreement. 6.02 The Union shall keep the Company notified, in writing, of the names of the shop stewards and the effective date of their appointment. As long as a shop steward has not been removed by the Union for any reason, he will continue to be a shop steward. The Company agrees and understands that no employee will be recognized as a shop steward without proper notice being sent by the Union to the General Manager or a designate. 6.03 No shop steward may leave his regular duties without the permission of his supervisor in

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order to attend Union business. Such request shall not be unreasonably denied. Such person shall not be so absent for more than a reasonable period of time in order to attend to the matter. Upon his return to his regular duties after having secured such prior permission, he shall give any explanation reasonably required by his supervisor to explain the duration of his absence. 6.04 Negotiating Committee The Company agrees to recognize and deal with a Negotiating Committee, which shall consist of the Union Representative(s) and up to five (5) bargaining unit employees selected by the Union who have completed their probationary period in one of the classifications or departments covered by this Agreement. 6.05 The Company agrees to compensate each member of the aforementioned negotiating committee up to a maximum of 15 days at his regular straight time hourly wage rate for time lost from work while attending to negotiations. Article 7 – Strikes or Lockouts 7.01 The parties agree that, during the life of this Agreement, the Company shall not cause or direct any lockout of employees and the Union agrees that it shall not cause or direct any strikes of its members. The terms “strike” and “lockout” shall be defined in accordance with the definitions set out in the Labour Relations Act of Ontario. The Labour Relations Act of Ontario defines a strike and a lockout as follows: “Strike” includes a cessation of work, a refusal to work or to continue to work by employees in combination or in concert or in accordance with a common understanding, or a slow-down or other concerted activity on the part of employees designated to restrict or limit output. “Lockout” includes the closing of a place of employment, a suspension of work or a refusal by an employer to continue to employ a number of employees, with a view to compel or induce the employees, or to aide another employer to compel or induce that employer’s employees, to refrain from exercising any rights or privileges under this Act or to agree to provisions or changes in the provisions respecting terms or conditions of employment or the rights, privileges or duties of the employer, an employer’s organization, the trade union, or the employees. Any statutory amendments to the above definitions shall be automatically deemed incorporated in place thereof.

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ARTICLE 8 – Grievance Procedure

8.01 Wherever the term "grievance procedure" is used in this agreement it shall be considered as including the arbitration procedure.

8.02 The Company shall be under no obligation to consider or process any grievance unless such grievance shall have been presented to the Company in writing at Step No. 2 of the grievance procedure within five (5) days from the time the circumstances upon which the grievance is based were known or should have been known by the grievor.

8.03 All time limits referred to in the grievance procedures herein contained shall be deemed to mean "working days". "Working days" as used herein shall be deemed to exclude Saturdays, Sundays and paid holidays.

8.04 There shall be an earnest effort on the part of both parties to settle any grievance promptly through the following steps.

STEP NO.1

By a conference between the aggrieved employee and his immediate supervisor within five (5) working days of the incident giving rise to the complaint or when the employee ought reasonably to have become aware of the incident. The employee may be accompanied by his area’s steward. The immediate supervisor shall give his decision within two (2) full working days. Failing settlement...

STEP NO.2

At this step, the grievance shall be reduced to writing and presented to the Department Head within the aforesaid time limits, but not thereafter. The written grievance shall set out the facts giving rise to the grievance and shall advise the Company of the nature of the claim so as to enable the Company to deal with the grievance, and shall be signed by the employee. The Department Head will give his written reply to the grievance within three (3) days. Failing settlement, then...

STEP NO.3

A meeting will be held with the grievor's area steward and the Director of Human Resources within three (3) days after the Department Head has given his written reply. The grievor may be required to be present at the request of either party. A staff representative of the Union may be present, if requested by either party. The Director of Human Resources shall give his written reply to the grievor's area steward within three (3) days of such meeting.

STEP NO.4

In the event the grievance is not settled at Step No. 3, the party having carriage of the grievance shall request arbitration of the grievance by giving notice in writing to the other party within seven (7) days from the delivery of the decision at Step No. 3, but not thereafter.

If a request for arbitration is not so given within such seven (7) day period, the decision at Step No. 3 shall be final and binding upon both parties to this agreement, and upon any

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employee involved.

8.05 ARBITRATION

(a) The notice to arbitrate referred to in Step No. 4 of 8.04 shall contain the names and addresses of the persons whom that party would like to see act as the arbitrator, and shall also specify all of the outstanding issues of written grievance to be dealt with by the arbitrator and the remedy sought. The party giving such notice shall be bound by the same and shall be restricted at arbitration to the issues as set out in the notice.

(b) Upon receipt of the notice by the other party, the recipient shall within five (5) days advise the other party, in writing, of the name of the person or persons whom the recipient would like to have act as arbitrator.

(c) If the parties hereto fail to agree upon a person to act as arbitrator within thirty (30) days of the receipt of the notice referred to in 8.05(b), the Minister of Labour for Ontario shall, if request to do so by either party, forthwith appoint a qualified person to be arbitrator.

(d) The arbitrator shall hear and determine the matter and shall issue a decision which shall be final and binding upon the parties and upon any employees affected by it.

(e) The arbitrator shall not be authorized to make any decision inconsistent with the provisions of this agreement nor to alter, modify or amend any part of this agreement, nor to adjudicate any matter not specifically assigned to the arbitrator by the notice to arbitrate specified in Article 8.05 hereof.

(f) The fees and charges of the arbitrator shall be borne equally by the two (2) parties hereto.

8.06 TIME LIMITS

The time limits and other procedural requirements set out in the Article 8 are mandatory and not merely directory. Therefore, failure to follow the grievance procedure in accordance with the requirements of this Article 8 shall be deemed to be a complete waiver and abandonment of the grievance by the grievor.

8.07 UNION POLICY GRIEVANCE OR COMPANY GRIEVANCE

(a) A Union policy grievance or a Company grievance may be submitted to the Company or the Union, as the case may be, in writing within seven (7) days from the time the circumstances upon which the grievance is based were known or should have been known by the grievor. A meeting between the Company and the Union shall be held within five (5) days of the presentation of the written grievance and shall take place within the framework of Step No. 3 of Article 8.04 hereof. The Company or the Union, as the case may be, shall give its written decision within three (3) days after such meeting has been held.

(b) If the decision is unsatisfactory to the grieving party, the grievance may be submitted to arbitration within five (5) days of the delivery of such written decision and the arbitration sections of this agreement shall be followed.

(c) It is expressly understood that the provisions of this paragraph 8.07 shall not be used by the Union to institute a grievance directly affecting an employee or employees which such employee or employees could themselves institute, and the provisions of Article 8.04 hereof shall not be bypassed.

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8.08 DISCHARGE CASES

(a) A claim by a seniority employee that he has been discharged without reasonable cause shall be treated as a grievance and shall commence at Step No. 3 of Article 8.04 provided a written grievance signed by the employee is presented to the Director of Human Resources within three (3) days after the discharge. A staff Representative of the Union will be permitted to attend the meeting held pursuant thereto, with the Director of Human Resources. The discharge of any probationary employee shall not be the subject matter of a grievance and shall not be arbitrable.

(b) Any discharge for eating will automatically go to arbitration.

8.09 Copies of suspensions or more serious discipline are to be sent to the Union.

8.10 Warnings will be taken from an employee's file if he or she has a clean record for twenty-four (24) months. Suspensions for possession or being under the influence of alcohol or drugs, theft or sexual harassment will be removed if the employee has a clean record for twenty-four (24) months. All letters of discipline with respect to any form of workplace violence will not be removed from the employee’s file.

8.11 Employees will be granted access to their personnel file. Twenty-four (24) hours advance notice must be given and the employee may be accompanied by a shop steward if she wishes, but must be accompanied by the Director of Human Resources or her designate. When practicable, the meeting will take place during regular business hours of the Human Resources Department. Should the employee wish to alter the contents of her file, the grievance procedure must be involved.

Article 9 – Seniority 9.01 (a) Seniority shall mean length of continuous service in the department since the last date of hire. All employees shall be on probation for a period of ninety (90) calendar days. On successful completion of the probationary period, the employee will be credited with seniority from the last date of hire. The departments for seniority purposes are:

Guest Services Housekeeping Food & Beverage Maintenance

(b) It is recognized that a period of probation is a period during which the company has the right to assess an employee to determine whether such employee is, in the sole opinion of the Company, acceptable for employment. Notwithstanding any other provision of this Collective Agreement, probationary employees may be terminated for reasons less serious than a seniority employee. (c) The Company may discipline or discharge a probationary employee at its sole discretion for any reason satisfactory to the Company at any time during the probationary period. 9.02 The Company shall for each department and classification keep and maintain up to date seniority lists showing each employee’s seniority date and his Department and Classification. Copies of such lists shall be supplied to the Union twice a year (on the dates listed below) and posted in the staff room in a secure bulletin board with a glass cover and lock. The posted seniority list shall be deemed to be correct if no complaint is initiated within fifteen (15) calendar days of posting. The seniority list will be posted January 1

st and July 1

st of each

year.

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9.03 In the event it becomes necessary to lay-off employees, the Company shall, on a classification seniority basis, consider the ability to perform the work involved and the seniority of employees and the lay-off shall be done in the following order:

1. Lay-off employees who have not completed their probationary period; 2. Lay-off part-time employees; 3. Lay-off full-time employees. Where employees abilities are relatively equal, the Company shall lay-off the less senior employee. Recall from layoff will occur in the reverse order. 9.04 When a vacancy occurs within the bargaining unit, the following factors shall be considered by the Company in filling the position: a) Skills, ability and efficiency to perform the work; b) Departmental seniority Where the skills and ability of two (2) or more employees to perform the work are relatively equal, factor (b) shall govern. 9.05 In the event a vacancy occurs to fill a full-time position in one of the classifications covered by this Agreement, the part-time employee(s) working in that department or classification, who have the skills, ability and efficiency to perform the function, shall be considered first before any outside hiring. 9.06 A full-time employee shall only have seniority amongst the full-time employees in the department and classification in which he is employed. Where a full-time employee becomes a part-time employee, he shall be inserted into the part-time employee seniority list for the department and classification involved in accordance with his date of hire. When a part-time employee becomes a full-time employee, he shall be inserted at the bottom of the full-time seniority list for the department and classification involved and his seniority date for the purpose of that list shall be the date that he became a full-time seniority employee in that department and classification. 9.07 For the purpose of lay-off only, an employee who has one (1) year of continuous service with the Company and who is appointed or otherwise selected as a shop steward by the Union and has not been removed by the Union from his position for any reason shall, for the duration of his term of office, be deemed to have the highest seniority of his department and classification and shall be the last employee laid-off in such department and classification, provided he is willing to continue to work and he satisfactorily performs the available work. 9.08 When an employee is transferred or promoted into another classification within the same department, the seniority of such employee will not be affected, his seniority will still be department -wide. For any other proposes the seniority of an employee will be hotel -wide. 9.09 When an employee is transferred or promoted in to another department, the seniority of such employee will be the effective the day of the transfer and he will be placed on the bottom of the seniority list in the new department or classification. For any other proposes the seniority of an employee will be a hotel -wide 9.10 Reduction of Hours When the hours of work in a classification are reduced, the available hours of work shall be assigned amongst the full-time employees in the classification so that the normal hours of work of the full-time employees with the most seniority, who have the skill and ability to do the work involved, will not be reduced until the hours of work of more junior employees in the same classification have been reduced.

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9.11 Probationary Employees The probationary period shall be ninety (90) calendar days. Once an employee successfully completes the probationary period, his seniority date shall be his last date of hire. 9.12 An employee shall lose all seniority and his employment deemed to have been terminated if he: a) Voluntarily leaves the employ of the Company;

b) Is discharged and is not reinstated through the grievance or arbitration procedure;

c) Is laid off for a period of twenty-six (26) weeks; d) Fails to return to work upon the expiration of an authorized leave of absence

unless prior arrangements acceptable to both the employee and the Company have been made, in writing, for an extension of such leave;

e) Utilizes a leave of absence for purposes other than those for which the leave of absence has been granted;

f) Is on layoff and fails to indicate his willingness to return to work within 48 hours after her receives or is deemed to have received notice of recall sent to him by Registered Mail by the Company or if he, within 5 calendar days after being recalled, fails, without a reasonable excuse, to return to work.

g) Is absent for three (3) working days without the approval of the General Manager or his/her designate or without sufficient cause;

h) Is absent on sick leave for a period in excess of twelve (12) months, subject to the provisions of the Ontario Human Rights Code.

Article 10 – Job Vacancies 10.01 All new jobs in the bargaining unit or permanent vacancies in existing jobs in the bargaining unit will be posted for 5 working days. Any employee with at least 2 years seniority who wishes to be considered may make an application in writing to the name of the person on the posting. When an employee is successful and obtains the new job, he cannot apply for any other posting of a new job or permanent vacancy for a period of 1 year thereafter. An employee awarded such a position shall be required to serve a probationary period of 3 months. 10.02 The name of the successful applicant for the posted job shall be posted on the bulletin board. Article 11 – Leave of Absence 11.01 (a) The Company may, at its discretion, grant a leave of absence without pay and without loss of seniority, to an employee for personal reasons, to a maximum of 3 months. All requests for such leave of absence shall be given in writing fifteen (15) working days prior to the leave. The Company agrees to reply to such request, in writing, within seven (7) working days whenever possible. (b) The Company in an emergency situation can grant a leave of absence effective immediately. It is understood that employees on a leave of absence shall not use the time granted for purposes other than as declared in their written request for such leave. (c) It is agreed and understood that these leaves of absence are inclusive of any entitlement to emergency leave, under the Ontario ESA, 2000. 11.02 The Company agrees to allow not more than 1 employee at a time to attend union educational seminars, provided that the Union gives the Company 3 weeks advance written

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notice. No more than 2 employees will be permitted to attend such seminars in any one year. Any such leave will be without pay. The granting of leaves under this provision is subject to the Company maintaining an adequate and qualified workforce. Article 12 – Pregnancy and Paternity Leave Both parties agree to comply with the Employment Standards Act, 2000 (Ontario), dealing with Pregnancy and Paternal Leave. Article 13 – Call In 13.01 If an employee reports for scheduled work and there is no work available he shall be granted four (4) hours pay for the day. The minimum scheduled working hours will be four (4) consecutive hours. An employee shall be granted four (4) hours in the case he is called in on his day off to attend a mandatory staff meeting. 13.02 An employee is not entitled to call-in pay if the Company has notified the employee in advance, not to report for work. 13.03 This minimum reporting allowance does not apply where the employee reports for work but there is no work for him to do because of circumstances beyond the control of the Company. 13.04 An employee who has left after the completion of his/her regular shift and is called back to work shall receive a minimum of four (4) consecutive hours of work or if there is not sufficient work available the employee will receive a minimum of four (4) hours pay at their regular hourly wage rate. Article 14 - Bonding 14.01 It is expressly understood that as a condition of employment each employee must be and remain acceptable for bonding purposes. It is further agreed that failure by the employee to be and remain acceptable to the Company’s bonding company, immediately terminates their employment regardless of seniority or other conditions. Article 15 – Individual Agreement 15.01 The Company agrees that no employee covered by this Agreement will enter into any individual Contract or Agreement with the Company concerning wages or working conditions that will in any way conflict with the terms of this Agreement. Article 16 – Holidays 16.01 (a) Employees, subject to the provisions of the Ontario ESA, 2000 shall be entitled to the following statutory holidays with pay:

New Year’s Day Family Day Good Friday Victoria Day Canada Day Labour Day Thanksgiving Christmas Boxing Day

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(b) Holiday Pay is computed in accordance with the Ontario, ESA 2000. (c) Effective April 1, 2015, all full time employees, who have completed their probationary period, shall be entitled to one Floating Holiday, to be taken at a time that is mutually agreeable. There shall be no carry-over of this Floating Holiday from one year to the next and shall not be paid out if not used. Pay for this Floating Holiday is computed in accordance with the Ontario, ESA 2000. 16.02 In order to qualify for payment on a holiday as provided for in 16.01, the eligible employee must work their last scheduled shift prior to and their first scheduled shift following the holiday. 16.03(a) Where an eligible employee works on a paid holiday, he shall be paid his wages at his regular rate for each hour he works and he shall also be paid his paid holiday pay without having to take a lieu day. (b) The Company will pay 1.5 times the employee’s regular wages plus holiday pay for holidays listed in the ESA, where an employee works the holiday. 16.04 (a) An otherwise eligible employee who is scheduled to work on one of the designated holidays but does not report for work as scheduled, shall forfeit their holiday pay for that particular day. (b) In the event the holiday falls on the employee’s regular day off, the Company (taking into consideration the Collective Agreement) may schedule another day off for the employee within the same workweek in which the holiday occurs. 16.05 In the event that one or more of the aforementioned statutory holidays occurs during an eligible employee’s vacation, he shall be paid for the statutory holiday in addition to their vacation pay. Article 17 - Vacation Entitlement: 17.01 Employees in the active employ of the Company shall be entitled to an annual vacation with pay in accordance with the following schedule:

a) Employees who have completed one (1) year of continuous employment with the Company shall be entitled to two (2) weeks vacation, with pay equivalent to four (4%) percent of their total pay earned during the twelve (12) months prior to the completion of one (1) year of continuous employment.

b) Employees who have completed five (5) years or more of continuous employment with the Company shall be entitled to three (3) weeks of vacation, with pay equivalent to six (6%) percent of their total pay earned during the preceding twelve (12) months prior to the date of completion of the continuous service concerned;

c) Employees who have completed fifteen (15) years or more of continuous employment with the Company shall be entitled to four (4) weeks of vacation, with pay equivalent to eight (8%) percent of their total pay during the preceding twelve (12) months prior to the date of completion of the continuous service concerned.

17.02 Total Pay shall mean the definition of wages in the Ontario Employment Standards Act,

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2000.

17.03 An eligible employee who wishes to take their vacation at a particular time may do so by written request, delivered to the Hotel Manager prior to April 1st of that vacation year. Vacation shall be allotted in accordance with seniority and the employee’s preference, subject to the Company being able to maintain a qualified and adequate staff. The employee will be notified in writing within twenty (20) days after the request is made as to whether or not their request has been granted. 17.04 Vacation credit (time and/or money) will not be accumulated from one year to the next. Article 18 - Wages 18.01 a) The Company agrees to pay and the Union agrees to accept during the term of this Agreement as minimums, the wage rates set out in Schedule “A” attached hereto. b) Merit Ratings The wages as outlined in schedule “A” in this Agreement are considered the minimum scale and do not prohibit the Company from granting merit increases to more proficient employees. Article 19 – Hours of Work and Overtime 19.01 The provisions of this Article are intended to define normal hours of work as a basis for calculating time worked and shall not be construed as a guarantee of work per day or per week, or a guarantee of a working schedule. 19.02 (a) The normal work week for full time employees shall consist of forty (40) hours per week. The shift will consist of eight (8) hours of regular work. The work week shall be defined as being from Monday 12:01am to Sunday 11:59pm. (b) It is understood and agreed that the provisions of this Article are intended only to provide a basis for calculating time worked and shall not be considered a guarantee as to the hours of work per day, the days of work per week, nor a guarantee of working schedules. (c) The parties agree that the employees will be scheduled in declining order of seniority from most senior to most junior. The most senior full time employee who has the skill and ability to perform the work available, shall receive the maximum number of scheduled hours available by the day and by the week, to a maximum of eight (8) hours in a day and forty (40) hours within the five days in a work week. (d) The Company will arrange schedules so that employees with greater seniority are given a greater share of days and hours available, subject to the Company’s ability to maintain a qualified and efficient workforce. (e) Employees will be entitled to one fifteen (15) minute rest period for each one-half (1/2) shift of four hours duration at a time determined by the Employer and consistent with efficient operations. Every employee is entitled to one half-hour unpaid lunch period during a shift of longer than five hours. (f) There shall be no duplication or pyramiding of hours worked for the purpose of computing overtime or other premium payment. The duplication or pyramiding need not be on account of the same hours worked on the same day. An employee will not be paid overtime or other premium payment for excess hours worked on any given day together with premium pay for

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excess hours worked in a week. 19.03 (a) The Company will post shift schedules by Thursday at 5pm, except in circumstances beyond the control of the Company. (b) The Company will use its best efforts to schedule employees off for two (2) consecutive days in a workweek. (c) Wherever possible, the Company shall use its best efforts to arrange work schedules so as to avoid an employee having to work on a sixth consecutive day. 19.04 Overtime at a rate of 1.5 times the employee’s straight-time hourly rate of pay exclusive of premiums shall be paid for hours worked in excess of 40 hours of work per week. 19.05 (a) Overtime opportunities shall be shared as equally as practicable among employees normally performing the work required and shall be on a voluntary basis. (b) The Company reserves the right to schedule overtime work. Overtime shall be offered to employees based on classification seniority. (c) When a question arises, where two (2) or more employees are entitled to work overtime in a classification other than their own, within the same Department, then Department seniority will be the determining factor. (d) When a question arises, where two or more employees are entitled to work overtime in a Department other than their own, hotel wide seniority will be the determining factor, providing that in all cases the employee(s) in question have the necessary skills and abilities to perform the work involved. 19.06 Should the Company fail to obtain sufficient employees on a voluntary basis, it shall have the right to require junior employees in the classification to work starting with the most junior. 19.07 To the extent that hours are compensated for at overtime rates under one provision of this Agreement, they shall not be counted as hours worked in determining overtime under the same or any other provisions of this Agreement, there shall be no duplication or pyramiding of overtime or other premium payment. 19.08 (a) Classification Seniority shall apply to entitlement to available days off and shift preference on available shifts subject to the Company being able to maintain a qualified and efficient work force. This is not a bumping provision and bumping will not be allowed 19.09 When an employee calls in sick and does not report to work as scheduled, the Company will not schedule another day of work for that particular employee in order to compensate that employee for hours lost due to the sick call, if as a result of such scheduling another employee would lose a scheduled shift or scheduled hours of work. 19.10 (a) When an employee is scheduled to work and works one (1) hour or more in a higher wage rated job classification, that employee will receive the higher wage rate for all hours worked.

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(b) Employees, who are scheduled to work and work in a higher wage job classification in the Kitchen Department, in order to qualify for the higher wage rate as per article 23.13,should be able to fulfill the duties and responsibilities of the job of the higher wage classification that they are scheduled to work. Article 20 Bereavement Leave 20.01 (a) In the event of a death in the immediate family, a full time employee who has completed the probationary period will be granted up to three (3) consecutive days leave of absence commencing with the date of death and concluding with the day of the funeral. Such leave shall be without loss of base pay. Immediate family shall mean spouse, child, father, mother, brother or sister. If, however, the funeral is not attended, the employee will be paid for time lost on only one of the above mentioned days. (b) In the event of a death of a grandparent, father/mother-in-law, brother/sister-in-law, a full time employee who has completed his probationary period shall be granted one day’s leave without loss of base pay, for the purpose of attending the funeral. (c) Where the term spouse is used, it shall include common-law spouse, as defined in the Family Law Act. 20.02 All bereavement leave set forth in Article 20.01 will be paid to the employee at their regular hourly rate for each day up to the maximum of their regular hours in a scheduled work day and on the condition they were scheduled to work on the day(s) in question. The Company may request from the employee to furnish proof of death. Article 21 – Bulletin Board 21.01 The Company will provide bulletin boards to be located at strategic locations. All Union notices must be signed by proper officials of the local Union and submitted to the Human Resources Department of the Company for approval before being posted. The Union agrees that it shall not distribute pamphlets or other publications on the premises of the Company without the Company’s prior written approval. Article 22 – Health and Safety, Safety Shoes ,Uniforms 22.01 Both parties mutually agree that they will cooperate in complying with the provisions of the Ontario Occupational Health and Safety Act. The Parties will appoint up to three (3) representatives each to become a member of the Health and Safety Committee that will conduct quarterly meetings. The Company will provide the Union with a copy of the minutes of the quarterly meetings. 22.02 Safety Shoes The Company shall pay fifty ($50.00) dollars per calendar year for one (1) pair of safety shoes for all full time Maintenance, House person(s), Kitchen, Stewarding and Porter employees. The shoes must be CSA approved. The payment is not cumulative from one year to the next. 22.03 Uniforms Uniforms for all employees will be provided, at no cost to the employee, by the Company. Article 23- Bell Desk Department 23.01 Any Group contract that includes baggage handling shall be paid to the Employee according to the rate set out in the Group contract.

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Article 24 - Outlets 24.01 Walkouts A waitperson is responsible for collecting the amount of the cheque from the costumer sitting in that employee’s station. When the waitperson fails do so, that employee shall be personally responsible for paying the amount of the cheque involved unless: a) The employee provides a reasonable and satisfactory explanation in accordance with the Company’s present practice; b) Two (2) calendar weeks from the date of the walk out have passed and the Company has not requested the employee involved pay the amount of the check involved; c) The grievance procedure has been exhausted. The above must be strictly adhered to, and failing compliance shall render the walkout payment void. Article 25 - Room Service Department 25.01 It is agreed 17% of the gratuity left by the guest will be shared among the servers. 25.02 Gratuities will be split as follows: All gratuities go into a common pool. Total gratuities will be split by hours worked between the bargaining unit employees performing the job. Article 26 – Banquet Department 26.01 It is agreed that the Company will balance the schedule as much as possible so employees work by seniority and that cherry picking is not allowed. 26.03 Overtime will be paid in the Banquet department after 44 hours in a workweek. 26.04 The Company will post the work schedule as far in advance as is possible. 26.05 The Company agrees to distribute banquet gratuities as follows: 75% of a 15% gratuity left by a guest shall be distributed in accordance with the gratuity sharing policy which includes a distribution to servers, porters, bartenders and four (4) managers. 26.06 All banquet employees called in or scheduled to work for any banquet function shall be guaranteed three consecutive (3) hours of work. 26.07 The Company will make available to the Union if requested, its records of any function and how the gratuities were split, charged to the guest and paid to the bargaining Unit employees.

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Article 27- Termination and Renewal 27.01 This Agreement shall become effective as of April 18, 2011 and shall continue in effect up to and including June 30, 2016 at which time it shall be automatically renewed unless either party has given notice to the other not more than ninety (90) days prior to the expire date of its desire to enter into negotiations for the revisions or renewals of all or any part of this Agreement, and both parties shall thereupon enter into negotiations in good faith and make every reasonable effort to secure renewal. Signed by the duly authorized representatives of the parties this ____day of _____, 2011. For the Union: For the Company: UNITED FOOD AND COSMOPOLITAN HOTEL TORONTO COMMERCIAL WORKERS UNION, LOCAL 333 __________________ __________________ __________________ __________________ __________________ __________________ __________________

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SCHEDULE “A”

Wage schedule for all employees by Department and Classification (Wage increase for all employees)

In addition to the present wage rate: April 11, 2011 – 1% October 11, 2011 – 1% April 11, 2012 – 1% October 11, 2012 – 1% April 11, 2013 – 1.25% October 11, 2013 – 1.25% April 11, 2014 – 1.25% October 11, 2014 – 1.25% April 11, 2015 – 1.5% October 11, 2015 – 1.5% Wage increases will take effect retroactively, the first pay period following the wage increase.

SCHEDULE “B”

Health and Welfare and Pension 1. In addition to the wages regularly paid by the Company to the employees as provided in this Agreement, the Company shall contribute to the United Food and Commercial Workers International Union a sum equal to: $150.00 (plus R.S.T.), per month effective June 1, 2011 $155.00 (plus R.S.T.), per month effective June 1, 2012 $160.00 (plus R.S.T.), per month effective June 1, 2014 $165.00 (plus R.S.T.), per month effective June 1, 2015 for each full time employee who has completed his/her probationary period and who is on the payroll for services rendered during any regular period, provided that such employee has been employed a minimum of twenty four (24) hours per week and has been in the employ of the Company for a period of (90) calendar days or more. 2.When the hours of an employee who qualifies for benefits are reduced at no fault of their own, the Company will continue to pay the health and welfare premiums if during a quarterly calendar review, the employee has worked an average of at least twenty-four (24) hours per week. 3. Such contributions shall be paid monthly and shall be used solely for the purpose of providing health, welfare and death benefits and such other benefits as may be afforded to eligible employees in accordance with this Agreement. 4. The Company agrees to pay the Health and Welfare fund Benefits for the first One Hundred and eighty (180) days of absence due to illness. 5. Payments to be made by the Company by cheque in favour of the Union Health and Welfare Fund and must be remitted by the to the Financial Secretary of the Union on the 10th day of each month. The Company will complete the remittance forms provided by the Union.

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6. All such monies due to the United Food and Commercial Workers International Union from the Company herein under the provisions of this Agreement shall be segregated each week by the Company until monthly remittance is made to the United Food and Commercial Workers International Union. Such monies shall not commingle with the funds of the Company, but shall be held in trust for the benefit of United Food and Commercial Workers International Union Local 333. 7. Sick Days (a) All full-time employees who have completed probation will be entitled to ten (10) paid sick days, per calendar year, for time lost from scheduled work due to sickness. Employees are subject to a three (3) day qualifying period prior to the payment of any sick days. The three day qualifying period is three scheduled days of work. The Company may request a doctor’s note from employees to substantiate the absence. (b) Sick day(s) can be utilized at any time during the year. (c) Sick day(s) cannot be accumulated and cannot be carried from one year to the next. (d) Sick day pay will be based on the scheduled shift the employee missed due to illness. (e) When an employee is returning to work from illness the Company may request a doctor’s note from the employee to substantiate that the employee is fit to return to work. (f) The Company agrees that employees should have easy access to medical benefit claim forms. Therefore, forms will be placed outside the Human Recourses office or by the Union board. 8. Pension (a) The Company will contribute the pension funds into a pension plan established by the Union and known as UFCW Workers Pension Plan administered by Benefit Plan Administrators Limited P. O. Box 3071, Station A, Mississauga, Ontario L5R 3A4. (b) The Company shall make said pension contributions for full-time employees who have completed a probationary period, as follows; Effective April 11, 2014, five cents ($0.05) per hour worked. Effective April 11, 2015, five cents ($0.05) per hour worked. (

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Housekeeping Letter of Understanding #1

The Room Attendant room assignment practice currently being followed at the Pantages Hotel which is the assignment practice that was in place prior to the date the certification vote of the Union, shall continue for the life of this collective agreement.

The Company will continue to use best efforts to supply sufficient linen for use by the Room Attendants.

Letter of Understanding #2

Banquet Casuals

A casual banquet employee is an employee who works intermittently for the Company and who is designated as such by the Company.

Casual banquet employees shall be deemed to have been hired and fired for each function worked and terminated at the end thereof. When casual banquet employees are required, they shall only be entitled to the benefits and wages as shown in the Wage Schedule for them. No other terms and conditions of the collective agreement shall apply to casual banquet employees. Employes at the Pantages Hotel shall be offered casual banquet employment, subject to no overtime being accrued.

Hours of work, overtime and vacation pay provisions for casual banquet employees shall be determined in accordance with the Employment Standards Act, 2000.

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Schedule A – Classification, Department and Wage Grid

Food and Beverage Department Rate **

Eight Bartender/Server * $10.66

Eight Breakfast Server * $12.00

Cook 1 (Red Seal) $17.00

Cook 2 $15.50

Cook 3 $14.50

Steward $12.00

Casual Banquet Server/Bartender * $8.90

Guest Services Department

Lifestyle Agent $14.58

Valet Attendant * $10.25

Housekeeping Department

Room Attendant $15.93

Houseperson $15.93

Maintenance Department

Maintenance $18.00

* Gratuity position

** Starter rate applies, subject to minimum wage laws. The rate is $0.50 lower than the rate set out in the grid above and applies during the first ninety (90) days of employment.

Any employee who is currently paid above the classification rate, will receive a wage increase equivalent to the wage increase on their current rate and not on the classification rate.