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Letter of Understanding / Production Bonus / Severance Pay /

July 1, 2007 to June 30, 2010
PACIFIC WESTERN BREWING COMPANY LTD. 2007-2010
Please read the disclaimer.


LETTER OF UNDERSTANDING
PRODUCTION BONUS
  1. A lump sum volume incentive will be made available within one (1) month of each fiscal year end (March 31st), within the term of this contract for distribution to all employee's on the seniority list at the fiscal year end date.

  2. For each 5000 hectolitres brewed, packaged and co-packed above the base volume of 140,000 hectolitres brewed and packaged and co-packed during the previous fiscal year, 0.5% of the actual working wages paid, (excludes time off, benefits and severance pay), in the previous fiscal year (April 1st to March 31st), to a maximum of 2.5% (or a total volume of 165,000 hectolitres brewed and packaged), will be made available. In 1996 the same formula will be repeated but with the trigger volume set at 150,000 hectolitres and capped at 3% or 180,000 hectolitres.

  3. Each employee on the seniority list shall receive a percentage of these funds equal to the percentage of the total gross wages that each employee received during the previous fiscal year.

FOR THE COMPANY	    FOR THE UNION

K. Komatsu          Gerry Bergunder

Barry Seims         Roy Graham

Tom Leboe           Tracy Robbestad

Larry Sutherland    Martin Power

                    Les Shields

                    Nicole Smith

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