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Letter of Understanding / Beer Store / Production Bonus / Severance Pay / Committees /

July 1, 2004 to June 30, 2007
PACIFIC WESTERN BREWING COMPANY LTD. 2002-2005
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ARTICLE 7
VACATIONS
SECTION 1
  1. All employees in the service of the Company for one (1) year or longer shall be granted two (2) weeks vacation per year with full pay. Holidays should be scheduled so as not to interfere with the efficient operation of the plant and the Company and the employees agree to co-operate in this regard. Employees are to state their selected period by April 1st. with written confirmation from the employer to be given no later than April 30th. of each year.

  2. All employees shall, after completing three (3) years of service with the Company, receive three (3) weeks vacation per year with full pay.

  3. All employees shall, after completing five (5) years of service with the Company, receive four (4) weeks vacation per year with full pay.

  4. All employees shall, after completing fifteen (15) years of service with the Company, receive five (5) weeks vacation per year with full pay.

  5. All employees shall, after completing twenty (20) years of service with the Company, receive six (6) weeks vacation per year with full pay.

  6. All employees shall, after completing twenty-five years (25) service with the Company, receive seven weeks (7) of vacation per year with full pay.

  7. For the purpose of determining an employee's eligibility for the third, fourth, fifth, sixth and seventh week of Vacation January 1, of the year in which the employee started shall be considered his anniversary date. Notwithstanding the foregoing, in the event an employee terminates his employment prior to reaching his anniversary date in any year and has used his entire vacation entitlement prior to said termination, the employer reserves the right to recover the unearned portion of his entitlement.

  8. All employees shall be granted a minimum of two (2) weeks vacation each year during the period commencing with the week in which June 15th falls and ending with the week in which Aug. 31st. falls.
    Earned vacation in excess of two (2) weeks must be taken outside of this period unless it is mutually agreed otherwise and such agreement does not deny another employee the right to take two (2) weeks during this period.

  9. In the case of employees receiving three (3), four (4), five (5), six (6) or seven (7) weeks vacation, one week, two weeks, three weeks, four weeks, or five weeks, whichever is applicable, must be taken within the periods January 15 to March 31, or October 1 to November 15, by mutual agreement, the employee to state by January 31 the date they prefer to take their weeks.

  10. Employees must take their vacations during the calendar year in which they become eligible for such.

  11. The vacation entitlement shall be granted to all employees provided they have worked a minimum of ninety (90) days in the previous anniversary year. For the purpose of this Article, "days worked" shall be defined as actual days worked, statutory holidays, and at the employees option either paid vacation days or days on Worker's Compensation.

    Employees who have not worked ninety (90) days in the previous year will be paid vacation pay at 4, 6, 8, 10 or 12% whichever is applicable or be granted the equivalent time off with full pay.

SECTION 2 - VACATION ILLNESS - CARRYOVER
  1. In the event an employee is unable to utilize scheduled vacation due to illness or injury, the Company will allow the employees to reschedule and utilize up to a maximum of two (2) weeks vacation prior to their anniversary date in the following year.

  2. If the employee is unable to utilize this vacation carryover by their anniversary date, the Company will top up disability payments to full regular gross pay, and the vacation entitlement will be discharged.

  3. In the event an employee becomes ill or injured in excess of three (3) days after having commenced their vacation, they may request as outlined below to postpone their remaining days of vacation in order to enrol in the weekly indemnity plan.

    1. The employees shall advise their supervisor of their illness or injury and make arrangements to have the weekly indemnity form completed.

    2. All approved requests will result in the employees remaining days of vacation being cancelled, as prescribed above, the day after the request is received. The remaining vacation time shall be scheduled at a time mutually agreeable to the Company and the employee.

    3. Any vacation pay held by the employee for the cancelled period shall be utilized for the rescheduled vacation period.

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