S TEVE WOLOZ & ASSOCIATES INC. MANAGEMENT CONSULTANTS

1. www.swaassoc.com STEVE WOLOZ & ASSOCIATES INC.MANAGEMENT CONSULTANTS • Complying with • 1% Law (Loi du 1%). Rev 5: January 31, 2013

2. Introduction • All Quebec Companies With Payroll • > $ 1,000,000 • Must Invest 1 % Of Payroll In Training • Failure = Pay Tax • Tax Payable Feb 28 • “Sommaire Des Retunues De L’employer” Rev 5: January 31, 2013

3. Objectives of the Act • To improve the skills and qualifications of workers • To promote employment, labour adjustment, employment integration and workforce mobility Rev 5: January 31, 2013

4. Responsibilities of Employers Subject To The Act For each calendar year (January to December)   • TO INVEST at least 1% of the enterprise’s total payroll in training • TO DECLARE the amounts invested in training to the Ministère du Revenu du Québec—using the form “Summary of Source Deductions and Employer Contributions”—by no later than February 28 each year Rev 5: January 31, 2013

5. Responsibilities of Employers Subject To The Act • If an employer has not invested the equivalent of 1% of its total payroll in training, it must REMIT the difference to the MRQ, which deposits that amount in the Workforce Skills Development and Recognition Fund • PROVIDE Emploi-Québec with general information on its investment in training—using the “Formulaire à remplir par l’employeur”—by no later than April 30 each year Rev 5: January 31, 2013

6. Eligible Training Main Criterion • Training Must Improve Employee Qualification • Training Must be According to Formal Plan • Training Must Be Correctly Documented and Accounted Rev 5: January 31, 2013

7. EligibibleMeans of Training Training body Trainer (individual) Emploi-Québec Workplace Apprenticeship Program Contribution to the training fund administered by the Commission de la construction du Québec (art. 12) Training given under a training plan established by an enterprise (art. 6 (4)) Training plan subject to employer- union agreement (art. 9) Training organized by an association (R.1, art. 1 (26)) (including NPO) Training service (single employer and multi-employer) Educational institution recognized by the Ministère de l’Éducation (art. 6(1)) Professional order governed by the Professional Code (art. 6(3)) Workshop, convention or seminar (R.1, art. 1(23)) Accredited by Emploi-Québec (art. 6 (2)) CATEGORIES OF ELIGIBLE EXPENDITURES training costs salary of employees who give or receive training salaries and costs involved in training support DOCUMENTS TO BE KEPT  invoices and receipts  record for entering salaries  other documents, depending on the means chosen training mutual recognized by Emploi-Québec (art. 8) Rev 5: January 31, 2013

8. On the Job Task Training • Must be based on a training plan that • Indicates the specific length of on-the-job training • be coordinated by a training service accredited by Emploi-Québec (art. 6.2) • Or • meet the eligibility requirements of (art. 6.4) • Or • be based on an employer-union agreement (art. 9) Rev 5: January 31, 2013

9. On The Job Training: Key Components • Transfer Of Knowledge • Transfer Of Abilities • Transfer Of Attitudes • Related To The Exercises Of New Tasks In The Realm Of The Given Job Rev 5: January 31, 2013

10. On The Job Training: Caution • “ L’entrainement A La Tache • Ne Vise Pas • L’atteindre De La PleineProductivite Rev 5: January 31, 2013

11. Critical Qualification: Reasonable Hours • Our Experience: 50 + / - 25 Hrs. • Safe and Normal • However ; No fixed limit • Hrs. Must Be Well Explained Rev 5: January 31, 2013

12. On The Job Training Recipients • New Employee • Existing Employee Due To: • Job Reassignment • Technological Change • Modification Of Production Process Rev 5: January 31, 2013

13. I Suggested TemplatesTo Track and Record Training Overall Plan Description Turnover Summary Individual Training Summary Group Training Summary Consultant’s Training Summary Expense Summary Diploma Summary Overall Training Summary Rev 5: January 31, 2013

14. Documentation Components re Training Plans • 1: Training Tools • 2: Teaching Methods • 3: Skills To Be Acquired • 4: Training Exercises Rev 5: January 31, 2013

15. Documentation Components re Training Plans ( Cont.) • 5: Training Stages ( Hours/Stage) • 6: Training Graphs • 7: Training Milestones • 8: Quality Guidelines Rev 5: January 31, 2013

16. On The Job Training Eligible Expenses • Salaries Of Employees; Trainers • Training Supplies (Manuals ;Videos etc .) • Materials Consumed During Training (Not Sold To Customer) Rev 5: January 31, 2013

17.  AdditionalEligible Training Expenditures • Expenses incurred for: • the travel, • lodging • meals • of employees who give or attend a training activity. Rev 5: January 31, 2013

18. Formal Training Plan Value • 1: Facilitates Attracting Higher Caliber Of Employee • 2: Assures Quality and Productivity • 3: Assures Customer Satisfaction Rev 5: January 31, 2013

19.  Publications Available www.emploiquebec.net • Loi du 1 % (Act to promote workforce skills development and recognition) • Règlement sur les dépenses de formation admissibles (Regulation respecting eligible training expenditures) • General Guide – Act to Foster the Development of Manpower Training • Guide de présentation d’une demande de subvention au FDRCMO • Guide – Règlement sur les organismes formateurs, les formateurs et les services de formation (Guide – Regulation respecting the accreditation of training bodies, training instructors and training services) • Directory of trainers accredited by Emploi-Québec Rev 5: January 31, 2013

20. Website and Telephone # • Loi Sur les Competences • http://emploiquebec.net/entreprises/formation/loi-competences/index.asp • Tel: 514-725-5221 • Fax: 514-725-4311 • swaaassoc.com: areas of practice Rev 5: January 31, 2013

21. Conclusion: 1% Law (Loi du 1%). • Your Most Valuable Resource • Human Capital (Resource) • Investing in Training Pays Rev 5: January 31, 2013