APPENDIX “R”

INTERNATIONAL POSTAL FUND

1.                  The parties recognize the desirability of the Union and its members becoming more involved in international union activities.

2.                  As a result, the Corporation agrees to contribute to an International Postal Fund (the “Fund”) established and administered by the Union in accordance with the provisions of this appendix.

3.                  The Fund shall be used exclusively to allow the Union and its members who are employees of the Corporation to develop and maintain a relationship and exchange with postal workers from other countries and their unions.  The Fund shall also be used to facilitate the participation of such Union members in international union activities.

The CUPW agrees that the Fund shall not be used to sponsor activities that may tarnish the image of the Corporation or be detrimental to it.

4.                  The Corporation agrees to contribute to the Fund in the maximum amount of two hundred thousand dollars ($200,000) per fiscal year as described below. Fund balances, if any, shall be carried forward into the next fiscal year.

5.                  The Corporation shall, within sixty (60) days following the completion of the fiscal quarter commencing after the date of signing of the collective agreement, deposit the sum of fifty thousand dollars ($50,000) into the Fund.

6.                  Within fifteen (15) days following the end of each subsequent fiscal quarter, the Corporation shall deposit fifty thousand dollars ($50,000) into the Fund.

7.                  The Fund balance shall not, at any time, exceed the total amount of two hundred thousand dollars ($200,000).  Should any deposit into the Fund cause it to exceed this amount, that deposit shall be reduced as necessary.

8.                  Union disbursements from the Fund shall not, in any fiscal year, exceed the total amount of two hundred thousand dollars ($200,000).

9.                  The Union shall maintain financial records of monies received by and monies disbursed from the Fund. The Union shall ensure that all financial records and transactions of the Fund are duly audited by a recognized firm of chartered accountants.  The Corporation may question the specifics of any expenditure of the Fund and the Union shall ensure that all disbursements from the Fund conform to the provisions of this appendix.

10.                Within thirty (30) days of the end of the Fund accounting year, the Union shall provide the Corporation with duly audited financial statements certifying that all expenditures made from the Fund were in accordance with the purpose of the Fund.

11.                The Corporation’s obligations under this appendix shall terminate in the event that any of its provisions are breached by the Union.