T-12, r. 2 - Regulation respecting forest transport contracts

Schedule Disposition versions

2012-09-01

SCHEDULE 13

AGREEMENT IN PRINCIPLE ENTERED INTO ON 1 OCTOBER 1999 BETWEEN THE ASSOCIATION DES MANUFACTURIERS DE BOIS DE SCIAGE DU QUÉBEC AND THE ASSOCIATION NATIONALE DES CAMIONNEURS ARTISANS INC.

BETWEEN

ASSOCIATION DES MANUFACTURIERS DE BOIS DE SCIAGE DU QUÉBEC (AMBSQ)

Represented by Mr. Luc Houde, Chairman of the board of directors

AND

ASSOCIATION NATIONALE DES CAMIONNEURS ARTISANS INC. (ANCAI)

Represented by Mr. Clément Bélanger, Chairman

(1) The ANCAI and the AMBSQ agreed to a transport contract by heavy vehicles that must be signed between a SHIPPER and a CARRIER as of 1 January 2000 (the “Contract”).

(2) The Contract’s scope shall be the transport of timber which has undergone no operation other than cross-cutting, limbing and barking (whether that timber is lengthwise or otherwise) from the public forest to a wood processing plant.

(3) Under the Contract, the SHIPPER will hold a right of management.

(4) The Contract provides that the CARRIER benefits from a right to negotiate with a SHIPPER the monetary clauses and other transport conditions subject thereto. To that end, the Contract stipulates that:

(a) the CARRIER benefits from the right to be represented;

(b) the CARRIER benefits from a hiring rank determined by the date on which he was hired;

(c) in the event that his hiring rank is contested, the CARRIER is entitled to arbitration;

(d) in the event of any other dispute from the Contract, the parties may resort to conciliation, the result of which is a recommendation;

(e) in the event of a dispute arising during the renewal of the Contract, the CARRIER may cease to transport and, throughout the duration of that dispute, the SHIPPER may exercise his right of management (without, however, leasing trucks on a short term basis).

(5) Under the Contract, the CARRIER and the SHIPPER will agree to a means that they consider efficient so that the legislation and regulation governing the loads on the public road network of Québec be complied with.

(6) The CARRIER’S hiring rank related to a designated vehicle from that CARRIER and related to the same SHIPPER, to the same Plant and to the same Operation (within the meanings defined or used in the Contract) will be established initially on the basis of the “seniority list” or the “recall list” available from the SHIPPER where the transport activities terminated in the Spring of 1999 or, failing such list, of a common agreement between the SHIPPER and the CARRIERS related by contract to that SHIPPER on the date on which the transport activities terminated in Spring 1999.

(7) In the initial establishment of the aforementioned hiring rank, where applicable, a vehicle for which a bulk trucking permit will have been issued under the Regulation respecting bulk trucking (chapter T-12, r. 3) (the “Regulation”) for a given region authorizing in particular the transport of forest material in that region will benefit from a priority hiring rank to any vehicle for which a special bulk trucking permit will have been issued under the Regulation authorizing the transport of forest material in a region other than the region for which a bulk trucking permit was first issued for the vehicle.

(8) If, during a forest transport contract entered into between a person (a “Contractor”) of whom a client retains the services to carry out forest activities (including the transport of those materials) and a CARRIER, any contract including transport activities of forest material from an Operation for the purposes of a Plant (within the meanings defined or used in the Contract) entered into between that client and Contractor, is terminated, that client may

(a) carry out himself all or part of the activities entrusted to the Contractor concerned; or

(b) entrust to any other Contractor (a “New Contractor”) all or part of those activities entrusted to the previous Contractor.

In the circumstances described in subparagraph a of section 8, the client concerned will enjoy the rights of a SHIPPER provided for in section 38 of the Contract insofar as he operates or uses, as owner or lessee, any vehicle for the purposes of the transport of forest material from the Operation in question for the purposes of the Plant referred to.

In the circumstances described in subparagraph b of section 8, the New Contractor, following the same CARRIER’S hiring rank whose services had been retained under the terms of the contract entered into with the previous Contractor, may operate or use (as owner or lessee), for the purposes of the transport referred to in the aforementioned contract, a number of vehicles not exceeding 50% of the number of vehicles operated or used for the same purposes by the previous Contractor (whether or not those vehicles were owned or leased by the previous Contractor).

For the purposes of section 8, a client shall not be deemed to have retained the services of a “New Contractor” if there are associates (within the meaning of the Canada Business Corporations Act) between that New Contractor and the previous Contractor.

(9) If, after a forest transport contract entered into between a Contractor and a CARRIER (the “Original Contract”) has expired in accordance with the provisions of the first paragraph of section 26 of the Contract, a client shall entrust to any Contractor transport activities of forest material from the Operation and for the purposes of the Plant referred to in the Original Contract and if those activities start before the expiry of a twelve (12)-month period following the deadline of the Original Contract, that Contractor, following the same CARRIER’S hiring rank whose services had been retained under the terms of the Original Contract, may operate or use (as owner or lessee), for the purposes of those activities, a number of vehicles not exceeding 50% of the number of vehicles that the Contractor, at his full discretion, considers necessary for the efficient carrying out of those activities.

For the purposes of section 9, a client shall not be deemed to have retained the services of a “New Contractor” if there are associates (within the meaning of the Canada Business Corporations Act) between that New Contractor and the previous Contractor.

(10) The parties agree to submit a project of the Contract to the Minister of Transport in order to verify its legal aspect and to make it mandatory to all the SHIPPERS and CARRIERS concerned.

(11) That agreement shall last five (5) years.

(12) Notwithstanding the real date of the Contract, that agreement shall be entered into and effective as of 1 October 1999.

O.C. 708-2000, Sch. 13.