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					                   Request for Proposal (“RFP”) For:

            OTTAWA MAIL PROCESSING PLANT - FOOD SERVICES

                   RFP NUMBER: 5409SL

                   ISSUE DATE:   November 18th, 2009




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                                                     Table of Contents
  Section 1.0    Overview and Procedures..................................................................... 4
  1.1 Objectives of this RFP............................................................................................. 4
  1.2 Canada Post Corporation......................................................................................... 4
  1.3 Definitions............................................................................................................... 5
  1.4 Proposal Preparation and Submission Requirements.............................................. 6
  1.5 RFP Timetable......................................................................................................... 8
  1.6 Proposal Communications & Proposal Contracting Authority ............................... 9
  1.7 Right to Amendments or Withdrawal of Proposal by Proposer............................ 10
  Section 2.0    Rights of Canada Post and Additional Information ........................ 11
  2.1 Canada Post’s Rights............................................................................................. 11
  2.2 Additional Information, Clarification and Addenda ............................................. 12
  2.3 Pre-Proposal Site Visit .......................................................................................... 13
  2.4 Disqualification of Proposals on Grounds of Faulty Submission ......................... 14
  2.5 Proposer's Ingenuity and Innovation..................................................................... 14
  2.6 Pricing and Value Analysis Considerations .......................................................... 14
  2.7 Costs Incurred By Proposers ................................................................................. 15
  2.8 No Obligation to Purchase .................................................................................... 15
  2.9 Contract Award ..................................................................................................... 15
  2.10 Litigation ............................................................................................................... 16
  2.11 Entire RFP ............................................................................................................. 16
  2.12 Ownership ............................................................................................................. 16
  Section 3.0    Evaluation and Selection Process....................................................... 17
  3.1 Objective: .............................................................................................................. 17
  3.2 Evaluation Team: .................................................................................................. 17
  3.3 Evaluation Methodology ....................................................................................... 17
  3.4 Evaluation Stages .................................................................................................. 17
  Stage 1: Review of Mandatory Requirements............................................................... 17
  Stage 2: Review of Rated Requirements....................................................................... 17
  Stage 3: Oral Presentation (If Required) ....................................................................... 18
  Stage 4: Review of Pricing............................................................................................ 18
  Stage 5: Overall Ranking - Final Selection................................................................... 19
  Section 4.0    Mandatory Requirements................................................................... 19
  4.1 Signed Offer to Supply.......................................................................................... 19
  4.2 Proposal Irrevocable by Proposer and Validity Period ......................................... 19
  4.3 Canada Post Confidential Information.................................................................. 20
  4.4 Security Requirements .......................................................................................... 20
  4.5 Information about an Identifiable Individual ........................................................ 20
  4.6 Insurance coverage................................................................................................ 21
  4.7 Other Mandatory Requirements ............................................................................ 21
  Section 5.0    Rated Requirements............................................................................ 22
  5.1 Executive Summary (Commercial Requirement) ................................................. 22
  5.2 Financial Information Requirements (Commercial Requirement)....................... 22
  5.3 Terms and Conditions (Commercial Requirement) ............................................... 22
  5.4 Business Plan......................................................................................................... 23
  5.5 Proposer Organization Requirements.................................................................... 23
  5.6 Proposer Experience Requirements ...................................................................... 24

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  5.7 Operating Plan Requirements................................................................................ 24
  5.8 Human Resources Plan Requirement.................................................................... 25
  5.9 Proposer Facilities & Equipment Plan Requirements ............................................ 25
  5.10 Transition Implementation Requirements............................................................ 26
  Attachment 1: Statement of Requirements..................................................................... 27
  Attachment 2: Terms and Conditions............................................................................. 37
  Attachment 3: List of Menu Items Proposed at the cafeteria all taxes included............ 63
  Attachment 4: Ottawa MPP cafeteria layout.................................................................. 66
  Attachment 5: List of Items Proposed for Vending Machines all taxes included.......... 67
  Attachment 6 – Letter of offer........................................................................................ 68
  Attachment 7: List of Vending Machines ...................................................................... 69
  Attachment 8: List of Equipment EXCLUDING Vending Machines Provided by the
   Supplier ......................................................................................................................... 70
  Attachment 9: Contractor Staffing Schedule ................................................................. 71
  Attachment 10: Cafeteria Hours of service schedule ..................................................... 72




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Section 1.0 Overview and Procedures
1.1      Objectives of this RFP
Canada Post has a requirement for the provision of food services at the Ottawa Mail Processing
Plant identified in the Statement of Requirements documented in Attachment 1 to this RFP.

The provision of food services for all staff and visitors at the Ottawa Mail Processing Plant
includes cafeteria, catering and vending services. The Corporation is seeking a supplier who is
able to staff, operate and maintain all of these food services.

It is anticipated that the term of any resulting contract will be for up to five years.

This RFP sets out the process by which a Proposer or Proposers will be identified for potential
contract award or awards.

It is anticipated that other members of The Canada Post Group (CPG) may wish to use the
services of the Proposer(s) under the same or similar terms and conditions.
Members of The Canada Post Group (CPG) are:

Innovapost;
Purolator;
SCI Logistics Inc.

Cette demande de proposition (DDP) est disponible en français sur demande.

1.2      Canada Post Corporation
Canada Post is a Crown Corporation with business activities across Canada. Canada Post’s
vision is to be a world leader in providing innovative physical and electronic delivery solutions,
creating value for its customers, employees and all Canadians.

Canada Post processes approximately 11.1 billion pieces of mail annually. In doing so, they
serve more than 32 million Canadians and over one million businesses and public institutions.
Canada Post collects, processes, and delivers mail across the world's second-largest country.

Each working day, Canada Post delivers an average of 37 million pieces of mail, processed
through 22 major plants and many other facilities, to over 14 million addresses in Canada, and
forwards mail to almost every country in the world.

Canada Post is the 41st largest Canadian business in terms of revenue and is the sixth largest
employer in Canada. Canada Post has commercial, operational, and financial links with over 200
postal administrations around the world.

Refer to the Corporation’s web site at www.canadapost.ca for additional information on the
Corporation.

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1.3      Definitions
“Affiliates” shall have the meaning of that term as it is defined in the Canada Business
Corporation Act, as amended, and in any successor legislation thereto.

“Amended Proposal” shall have the meaning ascribed to it in Article 1.7.

“Canada Post Confidential Information” means all information related in any way to Canada
Post, including without limitation any trade secrets, operation and business data, processes,
procedures, assembly methods, formulas, compositions, designs, drawings, photographs, videos,
graphs, tables prototypes, apparatuses, illustrations, blueprints, specifications, instruction
manuals, lists and charts disclosed orally, visually, in writing or in electronic medium to the
Proposer by Canada Post or gathered or obtained by the Proposer, its employees or agents as a
result of any such Person’s access to such information or physical attendance at the business
activities of Canada Post, including without limitation, information relating to the operations of
Canada Post, methods of operating, customers, affairs, processes, personnel, financial or legal
affairs, production, scientific and technical activities, inventions, know-how, ideas, computer
programs, systems, software and hardware, and other technical data, whether written, graphic,
electronically or otherwise stored, or oral, as well as copies, reproductions, samples and
specimens thereof, and includes all items, materials, drafts, specifications and other data
prepared for or in connection with the RFP. Confidential Information does not include
information which: becomes generally available to the public through no fault of the Proposer;
the Proposer can show was known to it on a non-confidential basis prior to disclosure by Canada
Post and is not subject to other obligations of secrecy and non-use; the Proposer can show was
independently developed by the Proposer; rightfully becomes available to the Proposer on a non-
confidential basis from a source other than Canada Post; or, is required to be disclosed by law.

“Canada Post Group (CPG)” means Canada Post Corporation and its subsidiaries, Affiliates,
partnerships, joint ventures and alliances.

 “Closing Date and Time” means the date and time by which Proposals are to be delivered to and
received by the RFP Control Officer as stated in the RFP Timetable in Article 1.5.

“Contracting Authority” shall have the meaning ascribed to it in Article 1.6.
“Letter of Offer” means the letter set out in Attachment 4 that the Proposer is required to sign and
submit as part of its Proposal.

“Decision Making Practices” means the Canada Post Practice that identifies individuals who have
the authority to approve expenditures.

“Mandatory Requirements” means the requirements set out in Section 4.0. Terms such as “must”,
“will”, and “shall” appear throughout the RFP document, however, the only mandatory
requirements are those identified in Section 4.0. Mandatory Requirements are to be met by all
Proposers, failing which their Proposals will be disqualified, subject to the Corporation’s rights to
seek clarification as set out in Article 2.1.4.



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“MERX™” means the on-line system that advertises the Government of Canada's contracting
opportunities to potential Proposers.

“Products or Services” means the Products and/or Services described within this document
specifically in Attachment 1 of this RFP.

“Proposal” means a Proposer’s submission made in response to this RFP.

“Proposer” means any entity that has submitted a Proposal in response to and in accordance with
this RFP or a potential Proposer.

“Rated Requirements” means the requirements set out in Section 5.0. Rated Requirements will
be evaluated and graded in the manner described in the Evaluation and Selection Process set out
in Section 3.0.

“RFP” means Request for Proposal.

“RFP Control Officer” means the person identified in Article 1.4.4.

“RFP Evaluation and Selection Process” means the process set out in Section 3.0, by which all
Proposals received by the Closing Date & Time will be evaluated.

“RFP Timetable” means the timetable shown in Article 1.5.

“Selected Proposer” means the Proposer(s) recommended for potential contract award as a result
of this RFP.

“the Corporation, Canada Post or CPC” are all abbreviations for Canada Post Corporation that
may be used in place of Canada Post Corporation throughout this RFP.

“Validity Period” means the number of days for which the Proposer’s Proposal shall remain open
for acceptance as is set out in Article 4.2 of this RFP.

1.4      Proposal Preparation and Submission Requirements
This section of the RFP describes the way in which the Proposer is to prepare their Proposal.
How the Proposer prepares their Proposal may affect the Proposer’s final score.

         1.4.1     General Proposal Format
                   1.4.1.1 The Proposal should:

                          (a) Be on 8 ½ x 11-inch paper

                          (b) The Proposer is requested to submit one softcopy of their Proposal.
                              The Proposal shall be on a CD in Microsoft Word except for price
                              submission spreadsheets which shall be in Microsoft Excel. If the


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                              Proposer does not have compatible software, please communicate with
                              the Contracting Authority identified in Article 1.6 for direction.

         1.4.2     Specific Proposal Content
                   This sub-section, lists the information that each Proposer is to submit within their
                   Proposal.

                   1.4.2.1 Table of Contents
                           The table of contents is to outline in sequential order the major areas of the
                           Proposal. All pages of the Proposal, including the enclosures are to be
                           clearly and consecutively numbered and correspond to the table of
                           contents.

                   1.4.2.2 General Information
                           Provide the name, title, address, telephone number and email address of
                           the person(s) authorized to deal with the Corporation on your behalf in
                           connection with your response to this RFP. In the event of a contract
                           award, state the name, title and the level of decision making of the
                           individuals who will be responsible for running the project.

                   1.4.2.3 Mandatory Requirements
                           As per Article 4.1, the Proposer is to submit as part of its Proposal, a
                           signed Letter of Offer. Any substantiating material requested in Sections
                           4.2 to 4.7 must be submitted in this section of your Proposal.

                   1.4.2.4 Rated Requirements
                           Provide a detailed response to each of the Rated Requirements included in
                           Sections 5.1 to 5.10 including Attachments 3, 5, 6, 8, 9, 10 following the
                           instructions that are included therein.

         1.4.3     Proposal Submission
                   An original and 1 copy for a total of 2 of the complete Proposal must be received
                   no later than the Closing Date and Time.

                   The original and all copies are to be in binders with easily removable sections
                   (including price section), and are to be submitted in a package stating on the
                   outside, the Proposer’s name, address, telephone number, the RFP title
                   identification, RFP number and the Closing Date and Time. The soft copy of the
                   Proposal should be secured within the original Proposal.




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                   All information regarding the terms and conditions, financial and/or technical
                   aspects of the Proposer’s offer, that in the Proposer's opinion, are of a proprietary
                   or confidential nature should be clearly marked "PROPRIETARY" or
                   "CONFIDENTIAL" at each relevant item or page or in a statement covering the
                   entire offer(s).

                   Canada Post or any third party acting on behalf of Canada Post will treat such
                   information as confidential, unless disclosure is required pursuant to any
                   legislative or other legal requirement or any order of a court or other tribunal
                   having jurisdiction.

                   In the event of any discrepancy between the original Proposal and any of the
                   copies of the Proposal, the original Proposal will take precedence.

                   Proposers are required to provide a complete response with respect to each item
                   and are required to submit all information and documentation as requested in this
                   RFP.

         1.4.4 Proposals Delivered to RFP Control Officer
               Proposals must be delivered to the Corporation’s RFP Control Officer at the
               following address:

                            ATTN: KATHY ROBILLARD
                            RFP CONTROL OFFICER
                            CANADA POST CORPORATION
                            SOURCING MANAGEMENT
                            N0751-2701 RIVERSIDE DR
                            OTTAWA ON K1A 0B1
                            Tel: (613) 734-9702
                            Fax: (613) 734-6359

                   The Corporation does not accept or consider Proposals transmitted by facsimile or
                   sent by any other electronic means or delivered to an address other than the
                   address set out in this Article 1.4.4.

                   The Corporation will not accept any Proposals not received at the address
                   identified or not received by the Closing Date and Time. Such Proposals will be
                   returned to the Proposer, unopened. Records will be kept of all returned Proposals.

                   The responsibility for submitting a response to this RFP at the Corporation
                   location identified, on or before the Closing Date and Time, will be solely and
                   strictly the responsibility of the Proposer.

1.5      RFP Timetable
The estimated schedule for the RFP and contract approval is as follows except for the Closing
Date and Time, which is a Mandatory Requirement.

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           Activity                                 Date Required
           RFP available for distribution           2009-11-18
           Site Visit                               2009-12-02
           Deadline for Receipt of Questions        2009-12-07
           Closing Date and Time                    2009-12-16 at 14H00 Eastern
                                                    Standard time
           Oral Presentations, if required          On demand only
           Evaluation Process Completion            2010-01-15
           Projected Award Date                     2010-01-25
           Projected Contract Start Date            2010-04-01

1.6      Proposal Communications & Proposal Contracting Authority
For the purpose of requesting information and clarification or for any other purpose relating to
this RFP including the RFP process, Proposers are to contact only the Contracting Authority for
this RFP as set out below:

                        SERGE LEGAULT
                        CONTRACTING AUTHORITY
                        CANADA POST CORPORATION
                        555 MCARTHUR ST. SUITE 1544
                        ST-LAURENT, QC H4T 1T4

                        Tel: (514) 345-7503 ext. 57083
                        Fax: (514) 345-7323
                        E-mail: serge.legault@canadapost.ca

All communication concerning this RFP is to be in writing clearly marked with the name and title
of the Contracting Authority and the number of this RFP.

All communication concerning this RFP is to be sent to the Contracting Authority by courier or
hand delivery at the above noted address, by facsimile at the above noted facsimile number, or by
e-mail at the above noted e-mail address. The Corporation will not be responsible for the
delivery of any communication. The Corporation recommends the Proposer confirm receipt of
all communications with the Contracting Authority.




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1.7      Right to Amendments or Withdrawal of Proposal by Proposer
         1.7.1     Amended Proposal by the Proposer
                   A Proposer that submits a Proposal to the Corporation may amend its Proposal
                   only by submitting the Amended Proposal to the Corporation at the location
                   identified in Article 1.4.4 of this RFP by the Closing Date and Time. In the case of
                   an amendment, the Proposer is to submit the Amended Proposal packaged in
                   accordance with the instructions set out in Article 1.4.3, and clearly labeled
                   “Amended Proposal”.

                   The last Proposal received by the Corporation, by the Closing Date and Time,
                   shall supersede and invalidate any Proposal previously submitted by the Proposer.

         1.7.2     Proposal Withdrawal by the Proposer
                   A Proposer that submits a Proposal to the Corporation may withdraw its Proposal
                   by advising the Contracting Authority in writing before the Closing Date and
                   Time.

                   The Corporation will return, unopened:

                   (a)    a Proposal that has been withdrawn; or
                   (b)    a Proposal that has been superseded by an “Amended Proposal”




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Section 2.0 Rights of Canada Post and Additional
            Information
2.1      Canada Post’s Rights

         2.1.1     The Corporation’s Right to Amend, Supplement or Cancel the RFP
                   The Corporation without liability, cost or penalty, may in its sole discretion:

                   (a)    Alter any dates in the RFP, as they relate to the RFP Process, at any time
                          prior to or after the Closing Date and Time;
                   (b)    Cancel this RFP at any time, whether prior to or after the Closing Date and
                          Time, and the Corporation may, but need not, in its sole discretion, issue a
                          new RFP;
                   (c)    Amend or supplement this RFP at any time prior to the Closing Date and
                          Time;

         2.1.2     Proposal Acceptance and Significance of the Proposal Process
                   This is not a request for tender. This is a request for Proposal to supply the
                   Corporation’s needs for the requirements described in this RFP. The Corporation
                   will not necessarily accept the lowest priced Proposal or any Proposal. While
                   price is an important element in the selection process, Proposers should recognize
                   that there are other criteria in this RFP that the Corporation will consider in
                   evaluating Proposals and in making its decision as to contract award(s).

         2.1.3     The Corporation’s Right to Waive Irregularities
                   The Corporation, without liability, cost or penalty, may, in its sole discretion,
                   waive irregularities in Proposals or in the submission of Proposals.
                   Notwithstanding the foregoing, the Corporation will not waive any Mandatory
                   Requirement or the Proposer’s failure to comply therewith.

         2.1.4     The Corporation’s Right to Clarify Proposals
                   The Corporation, through the Contracting Authority, without liability, cost or
                   penalty, may, in its sole discretion and at any time after Proposal submission, seek
                   clarification from any Proposer, either in writing or during the Oral Presentation
                   or Demonstration, with respect to its Proposal. Without limiting the generality of
                   the foregoing, the Corporation may, in its sole discretion, request a Proposer to
                   confirm in writing any statement made by the Proposer during the Oral
                   Presentation or Demonstration in which case the Proposer will promptly provide
                   such written confirmation to the Corporation, within the time specified by the
                   Contracting Authority.

                   Any written information received by the Corporation from a Proposer in response
                   to a request for clarification from the Corporation will be considered as an integral
                   part of the Proposer’s Proposal.



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                   Without prejudice to this right, the Corporation may request clarification where
                   any Proposer's intent is unclear, or may waive or request amendments where, in
                   the opinion of the Corporation, there is an irregularity or omission in the
                   information that has been submitted in the Proposal.

         2.1.5     The Corporation’s Right to Verify
                   The Corporation may verify any Proposer statement or claim by whatever means
                   the Corporation deems appropriate, including contacting references other than
                   those offered by the Proposer, and may reject any Proposer statement or claim if,
                   in the judgment of the Corporation, the statement or claim is unwarranted or not
                   credible. The Proposer will co-operate with the Corporation in its attempts to
                   verify any such statement or claim.

         2.1.6     The Corporation’s Right to Visit for Purposes of Clarification or Verification
                   The Corporation may, in its sole discretion, visit the Proposer’s existing place or
                   places of business for purposes of clarification or verification. Such a visit will
                   take place at a date mandated by the Corporation, acting reasonably.

         2.1.7     The Corporation’s Right to Split or Divide the Total Requirement
                   The Corporation reserves the right to accept a Proposal in whole or in part, and to
                   split or divide the total requirement among Proposers at the sole discretion of the
                   Corporation.

         2.1.8     The Corporation’s Discretion
                   The Corporation will exercise its discretionary rights under this RFP in a
                   reasonable manner.

2.2      Additional Information, Clarification and Addenda

         2.2.1     Proposer to Seek Clarification
                   It is the responsibility of the Proposer to seek clarification on any matter it
                   considers to be unclear in this RFP, including any attachments. The Corporation
                   will not be responsible for any misunderstanding on the part of the Proposer
                   concerning this RFP, the RFP process or the attachments.

         2.2.2     Submitting Questions
                   Proposers who wish to obtain further information and clarification about the RFP,
                   the RFP attachments or the RFP process are to submit their questions in writing to
                   the Contracting Authority at the e-mail address, the mailing address or the
                   facsimile number set out in Article 1.6 of this RFP.

         2.2.3 Deadline for Proposers Questions
               The Contracting Authority will accept written questions no later than the date and
               time indicated in the RFP Timetable (the “Deadline for Receipt of Questions”).
               The request will specify the RFP Section, Article, attachment and page number as
               applicable.


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         2.2.4     Response to Proposer Questions
                   The Corporation’s responses to the questions will be provided in writing to the
                   proposer.

         2.2.5     Final Opportunity for Questions
                   Proposers are advised that the deadline for receipt of questions from potential
                   Proposers is the final opportunity for Proposers to seek clarification with respect
                   to this RFP.

         2.2.6     Change to Proposal Due Date
                   If an addendum to the RFP is issued, the Proposal due date may be changed to
                   allow additional time for Proposers to complete their Proposals. Proposers shall be
                   advised of any new Proposal due date by addendum.

         2.2.7     Communications - Contract Authority
                   The Proposer is put on notice that:

                   (a) Only the Contracting Authority is authorized by and on behalf of the
                        Corporation to amend the requirements of this RFP;
                    (b) Any communication pertaining to this RFP with any employee of the
                        Corporation, other than the Contract Authority will constitute a breach of the
                        Corporation’s procedures and may result in the disqualification of the Proposer
                        as a potential supplier.

         2.2.8     Addenda to Request for Proposal
                   Any amendments or supplements to this RFP shall be made only by way of
                   addenda issued by the Contracting Authority in the same manner in which this
                   RFP was issued, and any amendments or supplements to this RFP made in any
                   other manner, including any oral or written statement made by the Corporation,
                   the Contracting Authority, or their respective employees, agents, consultants or
                   advisors, shall not constitute an addendum to this RFP. Where there appears to be
                   a conflict between the RFP and any addendum, the last addendum will prevail.

         2.2.9     Addenda are Binding
                   The addenda shall be binding on each Proposer, and the Corporation has the right
                   to assume that the Proposer in its Proposal has taken the information contained in
                   the addenda into account.

         2.2.10 Receipt of Addenda
                The Proposer is solely responsible to ensure that it has received all addendums, if
                any, issued pursuant to this sub-section.

2.3      Pre-Proposal Site Visit
To assist Proposers in understanding this RFP and the RFP process, the Corporation will conduct
a Pre-Proposal Site Visit for interested proposers on the date indicated in the RFP Timetable.


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                   Location: Ottawa Mail Processing Plant
                             1424 Sandford Fleming
                             Ottawa, ON K1A 0C1
                   Date:      December 2nd 2009 10H00 AM

Proposers are requested to confirm their intention to attend the Pre-Proposal conference by
contacting the Contracting Authority identified in Article 1.6 by November 30th, 2009.

At the Pre-Proposal Site Visit, the Corporation may, in its sole discretion, provide oral responses
to any or all of the written questions received prior to, or raised for the first time at, the Pre-
Proposal Site Visit. It is the responsibility of the Proposers attending the Pre-Proposal Site Visit
to take their own notes during the meeting. However, the Corporation will provide written
responses to all questions raised and these written responses shall prevail over any oral responses
given by the Corporation at the Pre-Proposal Site Visit.

2.4      Disqualification of Proposals on Grounds of Faulty Submission
The Corporation, without liability, cost or penalty, in its sole discretion, may disqualify any
Proposal at any time during the RFP process if, in the opinion of the Corporation one or more of
the following events occur:

         (a) it contains incorrect information;
         (b) it is unresponsive to this RFP;
         (c) the Proposer fails to cooperate with the Corporation in its attempts to clarify
              information or evaluate the Proposal;
         (d) the Proposer misrepresents any information provided in its Proposal;
         (e) it is incomplete;
         (f) the Proposal, on its face, reveals a conflict of interest or unfair advantage; or
         (g) a change has occurred in the management or ownership structure of the Selected
         Proposer.

2.5      Proposer's Ingenuity and Innovation
The Corporation encourages ingenuity and innovative solutions to improve productivity and
service at the lowest total cost of ownership. The Proposer is free to offer any solution that will
achieve the business needs, objectives and performance levels stated in this RFP. However, the
onus is on the Proposer to demonstrate that the proposed solution does in fact meet the stated
requirements.

2.6      Pricing and Value Analysis Considerations
Prices submitted are to be in full compliance with the Statement of Requirements, or
specifications of the goods and services requested in the RFP.

If there are extraordinary costs in order for the Proposer to comply, these costs shall be indicated
in the financial portion of the Proposal.

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Review this RFP in detail to assure full compliance with all requirements requested in this RFP.

2.7      Costs Incurred By Proposers
Nothing in this RFP, receipt by the Corporation of a response to this RFP, or subsequent
negotiations by the Corporation of terms of a contract to supply, shall in any way impose an
obligation on the Corporation to reimburse any Proposer or to pay any compensation for costs
incurred in the preparation of a response to this RFP, presentations, or the negotiation of a
proposed contract except to the extent that such obligation is contained in the formal written
contract containing terms and conditions satisfactory to the Corporation and executed by the
Proposer and the Corporation.

2.8      No Obligation to Purchase
Nothing in this RFP, receipt by the Corporation of a response to this RFP, or subsequent
negotiations by the Corporation of terms of a contract to supply, shall in any way impose a legal
obligation on the Corporation to make any purchases from any Proposer.

2.9      Contract Award

         2.9.1     The Contract
                   Any contract award made pursuant to this RFP is conditional upon the Selected
                   Proposer entering into a contract with the Corporation and conditional upon
                   formal approval by the Corporation in accordance with the Corporation’s Decision
                   Making Practices.

         2.9.2     Signing the Contract
                   The Corporation shall advise the Selected Proposer once the Corporation is ready
                   to commence negotiations. The negotiations shall be concluded within a
                   timeframe mandated by the Corporation, acting reasonably. At the conclusion of
                   negotiations, the Corporation shall endeavor as expediently as possible to prepare
                   and provide to the Selected Proposer the execution copy of the contract, signed by
                   the Corporation, together with a covering letter. The letter shall advise the
                   Selected Proposer to sign the contract within a timeframe mandated by the
                   Corporation, acting reasonably. After the contract is signed, the Selected Proposer
                   shall retain one counterpart of the contract and return the remaining counterparts
                   of the contract to the Corporation.

         2.9.3     Proposer’s Failure to Sign the Contract
                   Situations
                   In the event that one or more of the following situations occur, the Corporation
                   shall invoke one of the options stated in Article 2.9.3.2:

                   (a)    the negotiations with the Selected Proposer are not successful and the
                          Corporation, in its sole discretion, does not think that a contract on terms
                          satisfactory to the Corporation can be reached; or

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                   (b)   the Selected Proposer fails to employ best efforts to finalize the contract
                         during the timeframe mandated by the Corporation; or
                   (c)   the Selected Proposer fails or refuses to enter into the contract within the
                         timeframe mandated by the Corporation.
                   Options
                   The Corporation without liability, cost or penalty, may, in its sole discretion:

                   (a)    Extend the period for negotiation or execution; or
                   (b)    Cease negotiations with the Selected Proposer; or
                   (c)    Exercise the Corporation’s rights pursuant to Article 2.1.1(b) to cancel the
                          RFP.
                   (d)    Enter into negotiations with another Proposer.

2.10 Litigation
If the Corporation or any of its officers, employees, assigns, independent contractors,
subcontractors, agents or representatives is made a party to any litigation arising out of or by
reason of or attributable to this RFP, then the applicable Proposer(s) shall indemnify and save
harmless the Corporation and its officers, employees, assigns, independent contractors,
subcontractors, agents or representatives in connection with such litigation, except to the extent
that such litigation arose from the negligence or wilful act of the Corporation, or any of its
officers, employees, assigns, independent contractors, subcontractors, agents or representatives
while acting within the scope of his, her or its employment or engagement. The Corporation
may, at its option, and at the expense of the Proposer, participate in or assume carriage of any
litigation or settlement discussions relating to the foregoing, or any other matter for which the
Proposer is required to indemnify the Corporation and its officers, employees, assigns,
independent contractors, subcontractors, agents or representatives. Alternatively, the Corporation
may require the Proposer to assume or maintain carriage of and responsibility for all or any part
of such litigation or discussion, at the Proposer’s expense.

2.11 Entire RFP
This RFP, all referenced materials and all addenda constitute the entire RFP.

2.12 Ownership
Proposals received in response to this RFP before the Closing Date and Time shall become the
property of Canada Post and will not be returned. Unless disclosure is required pursuant to any
legislative or other legal requirement or any order of a court or other tribunal having jurisdiction,
all offers shall be treated as confidential and will be made available only to those individuals
authorized to participate in the evaluation process.




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Section 3.0 Evaluation and Selection Process
3.1      Objective:
The objective of the Evaluation and Selection Process is to identify the Proposal that effectively
meets the requirements of this RFP and provides the best value to the Corporation. A Proposal
may be deemed non-compliant if it is not submitted in the requested format or if requested
information is not submitted.

3.2      Evaluation Team:
An evaluation team will evaluate the Proposals. The evaluations will be conducted using pre-
determined criteria.

3.3      Evaluation Methodology
The evaluation methodology to be used in the evaluation of this RFP is based on the Rated
Pricing methodology.

3.4      Evaluation Stages
         The evaluation will be comprised of the following stages:

         Stage 1: Review of Mandatory Requirements
         Stage 2: Review of Rated Requirements
         Stage 3: Oral Presentation (If Required)
         Stage 4: Review of Pricing
         Stage 5: Overall Ranking and Final Selection

         The process and the evaluation and selection guidelines relating to each stage of the
         Evaluation and Selection Process are described below.

Stage 1: Review of Mandatory Requirements
         The Corporation will review each Proposal for compliance with the Mandatory
         Requirements. Proposals that, in the determination of the Corporation, do not comply
         with the Mandatory Requirements will be eliminated from further consideration in the
         evaluation process and will not proceed to Stage 2 of the Evaluation and Selection
         Process.


Stage 2: Review of Rated Requirements
         Stage 2 applies to all Proposals that have not been eliminated in Stage 1 or that have not
         been disqualified for any of the reasons set out in Article 2.4.
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         Proposers’ responses to rated requirements will be evaluated on the extent to which they
         meet the requirements.

         Proposers’ Proposals should therefore contain detailed responses and references to any
         attached substantiating documentation. Responses and substantiating documentation
         should be clear, direct and grouped together with an index provided to make it easy for
         the evaluators to locate a particular response or substantiating item.

         Proposals that do not respond to a particular rated requirement will receive a zero-point
         score for that rated requirement. Where the evaluation team cannot easily find responses
         to a rated requirement, a zero-point score may be assessed to that rated requirement.

         For each Proposal that has proceeded to Stage 2, the Corporation will review, and score
         the information provided by the Proposer in response to the Rated Requirements provided
         for in Section 5.0 of the RFP.

         The total score awarded to the Proposal at the end of this stage is the “Stage 2 Score”.

         Top Number of Proposers
         At the Corporation’s sole discretion, up to a maximum 3 Proposals with the highest score
         from the evaluation of this stage will be eligible to proceed to the next stage of the
         Evaluation and Selection Process.


Stage 3: Oral Presentation (If Required)
         The Oral Presentation may require the Proposer to make a presentation and answer
         questions about its Proposal. Prior to the Oral Presentation, the Corporation will inform
         the Proposers of the agenda for the Oral Presentation and identify the parts of the
         Proposal about which the Corporation will ask questions.

         If, in its sole discretion, the Corporation determines that sufficient information has been
         received to permit the Corporation to make a selection from among the Proposers, or if,
         based on the information received, the Corporation, in its sole discretion, determines it
         appropriate to decline to accept any Proposal, cancel this RFP, or issue a new RFP, then
         there will be no Oral Presentation.

         Presentation Adjusts Score
         The Oral Presentation will not be scored, but it may be used to validate the Proposer’s
         responses to any of the Rated Requirements that were scored in Stage 2 of the Evaluation
         and Selection process. Based on the Proposer’s presentation and its answers to questions
         about its Proposal, the Corporation’s evaluators may increase or decrease the Stage 2
         scores for any of the Rated Requirements.


Stage 4: Review of Pricing
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         For each Proposal that has progressed to Stage 4, the Corporation will review pricing.
         Each Proposer’s score for Pricing will be added to the Stage 3 Score and the resulting
         cumulative score awarded to the Proposal at the end of this stage is the “Stage 4 Score”.


Stage 5: Overall Ranking - Final Selection
         The following Evaluation Criteria and Weighting will be used as a basis for selecting the
         final Proposer(s).

Evaluation Criteria and Weighting Table:

                   Rated Requirements                                         Percentage
                   Commercial Requirements (Executive Summary, Financial,          10
                   Terms and Conditions)
                   Business Plan                                                   5
                   Organization                                                    5
                   Experience                                                     10
                   Operating Plan                                                 10
                   Hours of service                                               15
                   Human Resources Plan                                            5
                   Facilities & Equipment                                          5
                   Transition Plan                                                 5
                   Price                                                          30
                   Total                                                         100%

The top ranking Proposer with the highest Final Overall Score will be recommended for contract
award.

Section 4.0 Mandatory Requirements
Mandatory Requirements must be met by all Proposers, failing which their Proposals will be
disqualified.

Where requested, the Proposer must demonstrate compliance to the mandatory requirement or
submit the substantiating information requested.

4.1      Signed Offer to Supply
A representative of the Proposer, who is legally authorized to enter into a contractual relationship
in the name of the Proposer, must complete and sign the Letter of Offer, and submit it as part of
their Proposal.

4.2      Proposal Irrevocable by Proposer and Validity Period

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The Proposer agrees that by signing the Letter of Offer subject to the Proposer’s right to
withdraw a Proposal prior to the Closing Date and Time, Proposals will be irrevocable by the
Proposer and remain in effect and open for acceptance by Canada Post for “180” calendar days
following the Closing Date and Time.

4.3      Canada Post Confidential Information
The Proposer agrees by signing the Letter of Offer that all Canada Post Confidential Information
is the property of Canada Post and the Proposer must:

         (a)       Hold Canada Post Confidential Information in confidence;
         (b)       Use Canada Post Confidential Information only for the purpose of replying to this
                   RFP and fulfilling its obligations under the contract;
         (c)       Not disclose Canada Post Confidential Information without prior written
                   authorization from Canada Post;
         (d)       Disclose this information to sub-contractors only after the sub-contractor has
                   agreed to these restrictions with respect to disclosure and use of this information
                   and has acknowledged same to the Proposer in writing.
         (e)       Upon request, return Canada Post Confidential Information to Canada Post within
                   10 calendar days.

4.4      Security Requirements
The Proposer agrees by signing the Letter of Offer that it will comply with the Safety and
Security Requirements listed in Article 6.0 and Schedule E, (Attachment 2: Terms and
Conditions) to this Request for Proposal. The Proposer must provide proof that the requirements
are met by providing a copy of certificates demonstrating compliance or agree to be in full
compliance by the date specified in Article 6.0(g).

4.5      Information about an Identifiable Individual
The following clause may be contained within any resulting contract with a Proposer. The
Proposer agrees by signing the Letter of Offer that the following clause is Mandatory and will not
be altered and is not subject to negotiation:

The Contractor shall keep confidential and not divulge, or use without the written consent of the
Corporation, any personal information about an identifiable individual (including, but not limited
to, the name and address of an individual) provided to the Contractor by the Corporation or by
another party on behalf of the Corporation, except as required by the Contractor in order to carry
out its obligations under this Agreement. For the purposes of handling such information, the
Contractor shall govern itself as if directly subject to the requirements of the Privacy Act, R.S.C.
1985 c.P-21, as amended, and any other applicable legislation. The Contractor shall not destroy
any information about an identifiable individual unless expressly instructed to do so in writing by
an authorized representative of the Corporation.


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4.6      Insurance coverage

The Proposer agrees by signing the Letter of Offer that the Contractor selected will be required to
obtain, pay for and have in place at all times during the term of the contract, insurance coverage
as per Article 16 of Attachment 2 to this RFP.

4.7      Other Mandatory Requirements
         The Closing Date and Time is a Mandatory Requirement as per Article 1.4.4 is a
         Mandatory Requirement
         The Proposer shall accept payment for catering services by mean of the VISA corporate
         credit card.
         The supply of vending machines or equivalent as per Attachment No 7
         The supplier must be in business in the field of the food services for at least 5 years at the
         starting date of the contract.




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Section 5.0 Rated Requirements
The ability to follow instructions in the RFP response is considered indicative of the Proposer’s
ability to work with the client during the project. The overall presentation of the Proposal should
provide:

         •    Thorough and clear responses
         •    Table of Contents with associated page numbering
         •    Sequential numbering identical to this RFP
         •    Clear references to substantiating information

The response will be rated overall against these criteria.

Provide a detailed response to each of the Rated Requirements included below.

Respond on a paragraph-by-paragraph basis using the same part, division, subsection, clause,
page number etc. in the response.

Proposers are to submit the information requested and if unable to comply, the reason for non-
compliance is to be stated. For those requirements to which Proposers cannot comply, state the
page number, section and subsection and the reason for non-compliance. Significant non-
compliance may be assessed as non-conformance.

5.1      Executive Summary (Commercial Requirement)
         The Proposer is to provide an executive summary which contains a synopsis of its
         response to this Request for Proposal. It should include:

         •    An overview of the Proposal major strengths as they relate to Canada Post’s
              requirements
         •    Corporate information for the Prime Contractor
         •    Any other relevant information

5.2      Financial Information Requirements (Commercial Requirement)
         5.2.1     Provide a copy of the audited financial statements annual reports for your most
                   recently completed fiscal year.

         5.2.2     Provide a list of financial institutions that your company currently deals with and
                   key contact names and phone numbers.

5.3 Terms and Conditions (Commercial Requirement)
         Included in Attachment 2 to the RFP is a model agreement using the Corporation’s
         Standard Terms and Conditions. The nature of the response to the RFP or identification of

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         additional needs by the Corporation may require additional provisions to be addressed in
         the formal contract.

         Proposers are required to identify the articles in the model agreement where they cannot
         comply and their reasons for non-compliance by referencing subsection, page number etc
         in the response as appropriate. Do not redraft CPC’s sample agreement.

5.4     Business Plan
         A detailed Business Plan must be included in this section of the response. The Business
         Plan must demonstrate how you will operate food services (including cafeteria, catering
         and vending services) on a profit and loss basis with no subsidization by Canada Post. At
         a minimum, your Business Plan must include the following items.

         (a)       a detailed description of the proposed accounting and internal control systems;

         (b)       Samples of system - generated daily, monthly and annual reports;

         (c)       an overall detailed statement of total annual projected revenues, direct operational
                   costs, gross profit, capital repayment charges, and net profit by category of service
                   either cafeteria, catering and vending machines, for each year of the term of the
                   contract;

         (d)       total estimated capital expenses as described in Attachment 8 to outfit the food
                   service facilities including but not limited to the costs of all food service
                   equipment, fixtures, signage, lighting, logos, menu boards, mechanical and
                   electrical infrastructure, hook up of equipment and fixtures, design fees, project
                   management fees, contingencies and construction insurance etc.;

5.5     Proposer Organization Requirements
         The Corporation's evaluation will consider, among other things, the Proposer’s
         organizational structure and the organization to be put in place to support a contract.

         Provide a comprehensive organization profile and an organizational chart with position
         descriptions describing your organization's structure as follows:

         (a)       company ownership;
         (b)       corporate status;
         (c)       number of years in business;
         (d)       address of the head office and the regional office, telephone and fax numbers;
         (e)       name, title, address and telephone number of persons authorized to deal with
                   Canada Post on your behalf in connection with this RFP;
         (f)       number of employees;
         (g)       if a subcontractor is to be used, state the name of the sub-contractor and a
                   description of the role of each subcontractor .

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5.6     Proposer Experience Requirements
         Provide an overview of the type of business and type of products/services that form the
         majority of your company's business by addressing the following points:

         (a)       summary of the key strengths of your organization;

         (b)       list of 3 of your existing or most recent contracts related to industrial food
                   services in a no-subsidy food service program;

5.7 Operating Plan Requirements
5.7.1    Operating Plan - General Information

         The Potential Contractor’s Operating Plan may be subject to negotiation with Canada
         Post. The negotiated version of the Operating Plan will become an integral part of the
         final agreement entered into between Canada Post and the Contractor.

         Changes to the Operating Plan during the life of the agreement will be subject to a
         mutually agreed-upon change request process.

5.7.2    Operating Plan Minimum Components

         The Operating Plan shall, at a minimum, describe the components identified as follows:

         A - No Subsidy Food Service Program

         (i)       A full detailed description of your proposed no-subsidy food service program (i.e.
                   cafeteria, catering and vending machines).

         (ii)      A description of the cafeteria hours of service per day in a profit and loss basis
                   Complete Attachment 10.

         (iii)     A listing or description of any new concepts or ideas that you may have with
                   respect to the provision of food services in addition to Canada Post’s requirements
                   as stated in this RFP. Include a written description of any new concepts, food
                   outlets, coffee or other food kiosks etc. that you are proposing to incorporate
                   within the existing cafeteria facilities or that you are planning to construct or add
                   to replace any existing operations. Please note that no subsidization will be
                   considered for any new concepts proposed.

         (iv)      Samples of promotional or graphic material for the various brands, for which you
                   are submitting a proposal. For any national franchises, provide promotional
                   information and franchise agreements and for product brand licenses include
                   license agreements, etc.



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         (v)       A listing of all menu items, items or products with complete pricing for each of
                   the operating components (e.g. cafeteria, catering, vending,) for breakfast, lunch,
                   dinner and breaks. Include all taxes. Complete and submit Attachment 3 (List
                   of Cafeteria Menu Items) and 5 (List of Vending Machine Items).

         (vi)      A detailed proposal for the catering service including prices.

         (vii)     Emergency measures for unforeseen situations:
                   1-For your staff (illness, vacations, other)
                   2-For equipment breakdown
                   3-For food shortage

         (vii)     Measures to meet the nutritional guideline set out in Schedule “F” of the
                   Agreement.

5.8 Human Resources Plan Requirement
         Your human resources plan shall include your plan to manage the recruitment and
         development of personnel resources.

         You will therefore need to develop and submit a detailed human resources plan which
         includes, as a minimum the following information:

         (a)       a complete description of all personnel both full time and part-time required to
                   operate the facilities at the Ottawa MPP;

         (b)       a brief job description for all positions proposed above;

         (c)       projected staffing schedules and numbers and types of positions that you will
                   require by shift to operate the food service program. (Refer to Attachment 9 –
                   Contractor Staffing Schedule);

5.9 Proposer Facilities & Equipment Plan Requirements
5.9.1    Proposers are required to provide planning information that shows the concepts (national
         franchise and/or proprietary) that you will incorporate into the food service operations as
         outlined in Part II at the Ottawa Mail Processing Plant.

         Your facilities and equipment plan proposal should be submitted under the following
         assumption:

         (a)       Canada Post retains ownership of its existing equipment and is responsible for all
                   repair, supplemental or replacement costs.

         (b)       At the site visit, the Potential Contractor will be expected to verify the existing
                   equipment and determine what new equipment or other items are required in order
                   to implement the operational plan.
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         (c )      The Contractor will retain ownership of the equipment and other items it supplies
                   until such items have been depreciated, and during this period will be responsible
                   for all upgrade, repair, maintenance, supplemental or replacement costs.

5.9.2 Your facilities and equipment plan must include as a minimum:

         (a)       schematic floor plans for all cafeteria servery area identifying the brand types to
                   be incorporated and recommended locations;

         (b)       list of all food service equipment, furnishings, decor items, merchandising
                   features, signage, logos and other items that you are willing to supply as part of
                   your contract to operate food services;

         (c )      conceptual drawings and/or renderings which describe the key design and/or
                   operational elements for each food service location;

         (d)       You must also complete the table provided in Attachment 8 (Equipment List) for
                   all food service equipment and other items to be supplied and installed in the
                   cafeteria servery or kitchen facilities. The vending machines are mandatory and
                   must be provided as per Attachment 7.

5.10 Transition Implementation Requirements
         You must provide a complete description of the transitional plan that you will follow to
         implement the food service program. The transitional and implementation plan shall
         include, but not be limited to the following:

         (a)       the targeted dates for completion of the operational and facilities/equipment plan;

         (c)       time frame for installation of the vending services proposed;




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Attachment 1: Statement of Requirements
         1.0       GENERAL INFORMATION

         Canada Post has a requirement for the operation of food services at the Ottawa Mail
         Processing Plant located at 1424 Sandford Fleming, Ottawa, ON K1A 0C1.

         Canada Post has determined that the Contractor will staff, operate and maintain the food
         service facilities in accordance with the terms and conditions to be set forth in the contract
         governing the provision of food services. The services provided shall be based upon pre-
         determined quality standards and in the best interests of employees and management of
         Canada Post and shall include cafeteria, catering and vending services.

         The provision of food service at the Ottawa Mail Processing Plant includes cafeteria,
         catering and vending services. Accordingly, proposals submitted by the Potential
         Contractor must include cafeteria, catering and vending services. These services will not
         be considered separately or independently.

         Canada Post requires that these food services be provided for certain specific time periods
         during the work shifts at the Ottawa Mail Processing Plant. Once these hours of operation
         are established, the Contractor must obtain permission from Canada Post for any changes.
         For lower volume periods (i.e. weekends) alternate service arrangements will be
         considered by Canada Post.

2.0      BACKGROUND INFORMATION

         At the plant, there are main cafeteria facilities which are currently owned by Canada Post.
         The cafeteria facilities include servery and dining area supported by adjacent production
         kitchens and ware washing areas. The main cafeteria facilities within the plant are
         outside of the secure processing areas where the majority of the staff works.

         Employees are able to leave their work positions within the secure processing areas of the
         plant at designated times for break and meal periods to utilize the cafeteria. They also
         have access to the main cafeteria before and after their shifts. Employees are not
         permitted to consume food and beverage items at their work stations due to the sensitive
         nature of the mail processing equipment. Designated rest pod/seating areas are located
         throughout the processing areas of the plant and staff is permitted to consume food and
         beverage items in these areas.

         Vending machines are located in the certain rest pod/seating areas and include self
         operated dispensing type machines and coin changers. The vending machines located in
         the seating areas/rest pods are the property of the current Contractor. Employees have
         access to the vending machines during their work shift, however they are required to
         consume food and beverage items in the seating areas/rest pods. The Contractor will have
         to be able to supply, install and maintain all vending machines. Vending machines will
         include at a minimum: sandwiches, snacks, soft and fruit drinks and other sundry items.


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         It should be noted that from time to time Canada Post may change the location of various
         processing activities inside of the plant. Accordingly, Canada Post may also change the
         locations of the rest pod/seating areas. In this case, the Contractor will be expected to
         relocate the vending machines included in any rest pod/seating area being moved.

         Catering and special functions are provided at the Ottawa Mail Processing Plant by the
         Contractor. Requests are given to the Contractor in advance of service. Catering and
         special functions typically include meal service, coffee and other refreshment service,
         delivery, service and clean-up. Service may extend from simple beverage services to
         lunches or dinners. The Contractor will be expected to invoice the Canada Post
         department ordering the catering or special function. The Contractor shall accept
         payment by mean of the VISA corporate credit card.

2.1      Special Events

         Canada Post and its employees shall not be bound to use the Food Areas, or otherwise
         utilize the food and beverage services of the Contractor, while on the premises. For
         social, business or other functions which may take place on the premises and on at least
         five (5) days notice to the Contractor, Canada Post shall have the right to use cafeteria
         facility space without utilizing the food and beverage services of the Contractor.

3.0      CURRENT OPERATING STATISTICS

         The staff statistics of the Ottawa Mail Processing Plant:

               Total population:                               1,477
               Number of administration employees:             100
               First shift population (night):                 383
               Second shift population (day):                  665
               Third shift population (evening):               429
               Number of seats in the dining room:             95
               Number of vending machines:                     6
               Number of locations for vending machines:       2

         Current hours of operation for the cafeteria. (subject to change)

               Monday           06H00 to 14H00
               Tuesday          00H01 to 14H00
               Wednesday        00H01 to 14H00
               Thursday         00H01 to 14H00
               Friday           00H01 to 14H00

         The above statistics are subject to change as per Canada Post needs.

4.0      BRANDED CONCEPTS

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         Canada Post has determined that an innovative new food service program is required at
         the Ottawa Mail Processing Plant. Stations or food products should be incorporated as
         much as possible in the existing cafeteria serveries by the Contractor.

         Canada Post is requesting therefore, that the Potential Contractor submit proposal which
         include concepts using "in-house" or "proprietary" branded or "national franchise" brands
         concepts.

         The Potential Contractor supplies all “in-house” or “proprietary” branded concepts or
         "national franchises" product stations to be incorporated within the cafeteria servery.

         Nationally recognized products shall be used in the vending machines and wherever
         possible the products available should be displayed on the outside of the vending
         machines.

         Healthy food alternatives must also be offered in addition in your proposal.

         Any national franchise or product license supplied by the Potential Contractor will remain
         the property of the Potential Contractor during and after the duration of the contract
         period.

5.0      CANADA POST OWNED FOOD SERVICE FACILITIES

         Canada Post will make available the current food service facilities (other than vending
         machines) located at the Ottawa Mail Processing Plant to the successful Contractor(s) on
         a “no annual rental” basis.

         The food service facilities are to be used by the Contractor solely for the purpose of
         providing food services for Canada Post staff and visitors. This includes all of the
         existing cafeteria, kitchen, storage, and adjacent dining room facilities and vending
         locations. Canada Post will also provide at no cost, all heat, light and power, maintenance
         of Canada Post owned furniture, fixtures and equipment.

         Seating areas/rest pods within the secure processing areas of the plant which contain
         vending machines are also included in the facilities that will be made available to the
         Contractor for no annual rent. It is expected that the Contractor will supply and install
         vending machines in the seating areas/rest pods.

         Canada Post reserves the right however to change and/or modify the locations of seating
         areas/rest pods within the secure processing areas of the plants. Upon notice by Canada
         Post, the Contractor will be expected to move and re-install any vending machines
         included in any seating areas/rest pods that are relocated.

6.0      CAPITAL INVESTMENT BY THE CONTRACTOR

         The Contractor will be required to make an initial capital investment for:

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         (a)       new vending machines;

         (b)       improvements or renovations to the existing food services facilities (cafeteria) in
                   order to implement the program proposed and improve the overall condition of the
                   food service facilities; and

         In addition, the Contractor will be required to make on-going capital investments for
         adjustments in the facilities or the addition of equipment, signage and other
         merchandising features necessary from time to time to upgrade the products. The
         Contractor will also be expected to replace vending machines as required under the terms
         and conditions of the contract for food service provision.

         At the end of the contract period, the vending machines will remain the property of the
         Contractor. Any initial or on-going capital investments made by the Contractor for
         anything other than vending machines are to be depreciated over the length of the
         contract.

         The Potential Contractor must therefore include as part of the RFP submission, an
         itemized list of all food service equipment, signage, menu boards, logos, merchandising
         features, accessories and any other items to be supplied at the Canada Post locations. An
         outline of any physical adjustments and mechanical and electrical connections to be
         undertaken complete with all costs must also be included as part of the RFP submission.

         At the start of the Contract period, Canada Post will verify that all items proposed by the
         Contractor have been supplied and that any facility adjustments or upgrades and
         mechanical and electrical connections and “hook-ups” have been undertaken and
         completed to the satisfaction of Canada Post.

7.0      NO SUBSIDIZATION

         Food services must be operated by the Contractor in a manner that results in no
         subsidization by Canada Post. Canada Post does not subsidize food services. The RFP
         submission must therefore demonstrate that the Potential Contractor will operate food
         services in such a manner that results in no subsidization by Canada Post. Potential
         Contractors are encouraged to show how a no-subsidy program for food services will be
         achieved through new and innovative service delivery methods, the use of branded
         concepts (national and/or proprietary), marketing, financial controls and management of
         all food service operations.

         The numbers and types of current food service facilities and the hours of operation are
         included in this document for information purposes only. Potential Contractors must state
         what types of operations and hours of service are recommended (refer to Attachment 10)
         in order to maintain a no-subsidy food service program for Canada Post, recognizing that
         Canada Post wishes to provide a quality and responsive food service program to its
         employees during normal work or shift periods. Innovative plans must also be included
         in the submission which show how food services can be provided in alternative or

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         creative ways for periods with reduced volumes, without any subsidies for these service
         periods.

8.0      GENERAL MANAGEMENT, PREPARATION, PRODUCTION AND SERVICE
         RESPONSIBILITIES

         The following services shall be the responsibility of the Contractor and in no way limit
         the generality of the services noted in other sections of this Statement of Requirements:

         (a)       to manage and operate all segments of the food service operations (cafeteria,
                   catering and vending) in an efficient and professional manner;

         (b)       to manage and maintain the food service facilities in accordance with all laws,
                   ordinances, regulations, licenses held and rules of federal, provincial and
                   municipal authorities and Canada Post standards;

         (c)       to provide and promote creative merchandising programs and develop effective
                   point-of-sale merchandising techniques such as specialized overhead signage and
                   lighting, food displays, menu boards and brand logos etc.;

         (d)       to maintain an inventory of food products, goods and supplies as may be necessary
                   and appropriate for the effective operation of food services and supply all working
                   capital for the effective operation of food services;

         (e)       to negotiate purchase contracts with all suppliers of food and beverage products;

         (f)       to place orders for all necessary food and beverage items required;

         (g)       to receive all food, merchandise, and supplies related to food services at the
                   designated loading/receiving dock;

         (h)       to promptly porter all food and supplies related to food services to the designated
                   kitchen and/or food service storage areas included at the Canada Post locations;

         (i)       to prepare and serve all food and beverages in the cafeterias or other facilities as
                   proposed;

         (j)       to post daily menu in both official languages;

         (k)       to stock all vending machines with product on a daily basis;

         (l)       to collect all gross revenues derived from all food service operations;

9.0      MANAGEMENT OF HUMAN RESOURCES

         The Contractor shall:


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         (a)       at its own expense, supply all personnel necessary for the operation of the Food
                   Areas.

         (b)       ensure that its personnel are properly trained, have been medically screened and at
                   all times are medically fit to engage in the preparation of food items.

         (c)       ensure that its personnel abide by Canada Post's safety, security and other
                   applicable standards on the Premises. Each of the Licensee's personnel shall, in
                   accordance with Canada Post's applicable region security program including a
                   security clearance, be photographed by Canada Post for the purpose of the
                   assignment of an identification card and shall show such card upon request when
                   entering or otherwise on the Premises. Refer to Schedule “E” of the contract.

         (d)       ensure that its personnel are uniformed in a manner that is mutually satisfactory to
                   Canada Post and the Licensee.

         (e)       ensure that a managerial employee, or assistant thereto, is at all times present on
                   each of the Premises.

         (f)       where the Contractor is advised, by written notice from Canada Post, that an
                   officer, employee, servant, agent or other person under the supervision or control
                   of the Licensee is for any reason objectionable, unsatisfactory or otherwise
                   undesirable, the Licensee shall, within seven (7) days after receipt of the notice,
                   take appropriate measures to correct the situation.

         (g)       the Contractor shall ensure that its personnel can serve the Canada Post employees
                   in both official languages.

         (h)       ensure employees adhere to proper HACCP and hygiene practices;

10.0     CLEANING RESPONSIBILITIES

         The following cleaning tasks are the responsibility of the Contractor. The Contractor will
         be responsible for ensuring that the cafeteria servery and kitchen areas are kept clean at all
         times. The Contractor will also be responsible to keep vending machines clean and in
         proper working order at all times.

         Cleaning in the kitchen area will include all food preparation and cooking equipment,
         walk-in refrigerators and freezers, shelving, walls, ware washing equipment, etc. Cleaning
         in the cafeteria servery area will include all serving counters, food equipment,
         merchandisers, cashier stations and condiment counters etc. Cleaning will include the
         vending machines. More specifically, the Contractor will be required to:

         (a)       clean daily all designated food service receiving storage, preparation, production,
                   and ware washing areas as well as any food service offices in the main kitchen
                   area;


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         (b)       pick up daily all trays on the tables in the dining room and clean all surface tables
                   and edges as often as needed during the day;

         (c)       clean daily all service and preparation areas in the main cafeteria servery areas as
                   required prior to each break and breakfast, lunch and dinner service period;

         (d)       clean on a daily basis, all cutlery/condiment and cashier stations in the main
                   cafeteria servery and main dining/seating areas;

         (e)       clean walls below 6 feet in the kitchen and cafeteria servery area as needed;

         (g)       clean all cooking and other kitchen equipment weekly;

         (h)       clean all vending machines internally and externally as directed by Canada Post;

         (i)       provide “WHMIS” training to all food service employees;

         (j)       clean microwave ovens supplied by Canada Post or yourself in the main dining
                   room/seating area;

         (k)       ensure any cleaning compound used are compliant with Hazard Materials
                   Standards (H.M.S.) and ensure food service personnel are trained in H.M.S.

         (l)       providing appropriate closed garbage bins and daily garbage removal from the
                   cafeteria area to the applicable garbage storage room;

         (m)       the Contractor shall comply with any waste management program which Canada
                   Post may from time to time be engaged in. Without restricting the generality of
                   the foregoing, the Licensee may be required to participate in composting, waste
                   and materials separation, use of special containers, or use of specified cleaning,
                   maintenance or other products related to the ongoing operation of the Food Areas.

11.0     PRODUCT AND PRICING

         The following are the responsibility of the Contractor:

         (a)       Provide products of quality at prices stated in the RFP response and consistent
                   with similar products presently being offered at other similar facilities.

         (b)       Meet with Canada Post representatives on an annual basis to obtain approval of
                   products and pricing to be offered for cafeteria, catering and vending services
                   during the next up-coming year period. At this time, the Contractor shall make
                   available an updated schedule of prices to be charged for products sold along with
                   portion size, weight and grade of each item.




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         (c)       Notify the Canada Post management representative designated as the food service
                   liaison person, in advance of any intended price or menu changes if they are
                   proposed to occur other than in conjunction with the annual review.

         (d)       Obtain advanced approval in writing from Canada Post for any changes in pricing
                   or products offered within cafeteria, catering and vending services.

12.0     MARKETING AND PROMOTION

         The following are the responsibility of the Contractor, and in no way limit the generality
         of the services noted in other sections of this RFP:

         (a)       Market food and beverage operations including any promotional programs relating
                   to products and pricing.

         (b)       For any franchise branded outlets, if any, provide promotional packages and/or
                   programs that are available in any of the same franchise outlets outside any of the
                   plant operations.

13.0     FINANCIAL REPORTING

         The Contractor shall keep complete and accurate books of account and other applicable
         financial and other records with respect to its operation of the food service, all prepared in
         accordance with generally accepted accounting principles.

         The Contractor shall, and shall cause its subcontractors and agents to, provide Canada
         Post (through Canada Post's authorized representatives) with such records, reports and
         access to premises as Canada Post may reasonably request for the purposes of conducting
         an audit to determine compliance by the Contractor with its obligations under the
         contract.

         The Contractor shall:

         (a)       install and maintain Point of Sale and Accounting Systems: All cash registers and
                   computerized accounting and purchasing systems necessary at the Ottawa Mail
                   Processing Plant;

         (b)       utilize professionally managed computerized accounting controls;

         (c)       collect and promptly disburse all taxes required by federal, provincial and local
                   authorities and pay any applicable taxes relating to food service operations at the
                   plant. Hold Canada Post harmless from all and any claims arising from unpaid
                   taxes;

         (d)       submit to Canada Post, annual financial reports for each of the food service
                   cafeterias operations, vending and catering services on a plant by plant basis;


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         (e)       include in each of the annual financial reports the current year, same prior year
                   and current year to date sales and costs including labour, benefits, food by major
                   product groupings, detailed breakdown of other supplies and any corporate
                   overhead charges and/or allocations ;

         (f)       the Contractor shall provide to Canada Post within sixty (60) days following the
                   end of each fiscal year of the Contract Term, audited financial statements,
                   including a full statement of profit and loss and a balance sheet for all cafeteria,
                   catering and vending operations. The Contractor will allow Canada Post or its
                   representatives access to accounting records, including but not limited to cash
                   register tapes, sales reports, sales journals, payroll journals, other books of original
                   entry and the general ledger in order to verify the accuracy of sales reports if so
                   requested by Canada Post.

14.0     FOOD SERVICE EQUIPMENT SUPPLY AND FACILITY RENOVATIONS

14.1     Procurement and Installation of Equipment

         The Contractor will be responsible for the selection, procurement, and installation
         associated with the following items to be utilized by the Contractor in the operation of
         Canada Post food service facilities including any mechanical and electrical rough in or
         hook up costs. All equipment must be CSA/ULC approved and installations coordinated
         with Canada Post.

         a.        Small wares: All items necessary to serve and prepare food and beverage items;
                   and to complete normal janitorial clean-up of the kitchen and associated food
                   preparation areas and service facilities.

         b.        Vending Equipment: All machines necessary to hold and serve beverages, snacks,
                   etc. in the various facilities including change machines, coffee and soda
                   dispensing equipment, snack and general merchandisers.

         c.        All additional food service equipment, signage, logos, food kiosks, merchandising
                   units and any other materials necessary for the implementation of your marketing
                   or branded concepts.

         d.        Any adjustments to the facilities necessary for implementation of the marketing or
                   branded concepts or any other operational or service concepts included in your
                   operational or marketing plan.

         e.        Other Food Service Equipment: Any items necessary to maximize the efficiency
                   and quality of the food service operation.

         f..       Point of Sale and Accounting Systems: All cash registers and computerized
                   accounting and purchasing systems necessary at the Ottawa Mail Processing Plant
                   included in this RFP.


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14.2     The Contractor will supply new vending machines that will meet Canada Post
         requirements. Expectations for this equipment will be discussed during the Site
         Inspection.

15.0     FOOD SERVICE EQUIPMENT MAINTENANCE AND REPLACEMENT

         Canada Post shall maintain all Canada Post owned food service equipment including but
         not limited to existing ovens, ranges, fryers, steam kettles, dishwashers, ice machines,
         refrigerated storage equipment and servery equipment etc. All such items will be placed
         under a periodic maintenance contract, the cost of which shall be borne by Canada Post.

         The following are the responsibility of the Contractor:

         (a)       provide all necessary on-going equipment maintenance, upgrading or facilities
                   adjustments related to the implementation of the national franchises and/or “in-
                   house “brands;

         (b)       provide all necessary on-going equipment repairs and maintenance for vending
                   machines and point of sale (cash register) systems;

         (c)       establish maintenance contracts with outside companies or Canada Post personnel
                   for the on-going repair and maintenance of Contractor owned equipment;

         (d)       notify Canada Post of food service equipment items owned by Canada Post
                   needing repair;

         (e)       In emergency situations have repairs undertaken to small wares and minor
                   equipment items. Canada Post to establish pre-authorized repair cost threshold.



                                  _______________________________




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Attachment 2: Terms and Conditions
SAMPLE AGREEMENT

SECTION            TITLE

1.0      Term of License
2.0      Grant of License and Operation of Food Areas
3.0      Canada Post to Supply
4.0      Cafeteria Areas
5.0      Hours of Operation
6.0      Employees
7.0      Provision of Food Services
8.0      Equipment
9.0      Cleaning Services
10.0     Receiving of Supplier and Equipment
11.0     Pricing
12.0     Taxes and Permits
13.0     Payment and Financial
14.0      Inspection and Audit
15.0     Liability for Loss or Damage
16.0      Insurance and Indemnity
17.0     No Interest in Lands
18.0     Alterations
19.0     Obligation to Return Canada Post's Property
20.0     Advertising and Signage
21.0     Termination
22.0     Compliance with Law
23.0     Records and Reports
24.0     Notice
25.0     Representations and Warranties
26.0     Confidentiality
27.0     Independence of Licensee
28.0     Waiver
29.0     Assignment
30.0     Time
31.0     Enurement
32.0     Severability
33.0     Surviving Provisions
34.0      Language
35.0     Entire License and Amendments
36.0     Conflict of Interest
37.0     Force Majeure
38.0     Gender and Number
39.0      References to Days
40.0     Separate Counterparts
41.0     Governing Law



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AGREEMENT NO.:


THIS LICENSE ("License") is made the __________ 2010,

BETWEEN:                  CANADA POST (hereinafter referred to as "Canada Post")

AND:                      [LICENSEE] (hereinafter referred to as "Licensee")

WHEREAS Canada Post has permitted the provision of food and beverage services by way of
cafeteria facilities, catering services, vending machines and related equipment and services (the
"Food Areas"), at the Ottawa Mail Processing Plant; and

WHEREAS the Licensee is engaged in the business of providing food and beverage services and
has agreed, subject to the terms and conditions of this License, to operate such Food Areas as are
designated by Canada Post at its postal facilities as specified;

NOW THEREFORE in consideration of the mutual covenants and agreements contained in this
License and other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties agree as follows:

1.0      Term of License

         This Licensee shall bind the parties for a term commencing on April 1st 2010 until March
         31st 2015, which may be renewed on consent of the parties.

2.0      Grant of License and Operation of Food Areas

         (a)       Canada Post hereby grants the Licensee the license to operate at the Ottawa Mail
                   Processing Plant ("Premises"), the Food Areas. In terms of those Food Areas that
                   are cafeteria facilities and vending machines, the Licensee shall have the exclusive
                   right to operate a Food Area within the Premises. In terms of all other Food Areas
                   (catering service), the Licensee’s right to operate shall be non-exclusive. Food
                   Areas shall be operated only at the portions of the Premises that are designated by
                   Canada Post.

         (b)       The Licensee shall obtain, at its own expense, all necessary permits, licenses or
                   other authorizations which may be required to operate the Food Areas.

         (c)       The Licensee shall ensure that the operation of the Food Areas in all respects and
                   at all times complies with all applicable legislative and regulatory standards.

         (d)       The Licensee shall operate the Food Areas for the sole and exclusive use of
                   Canada Post and its employees on the Premises.

         (e)       Canada Post and its employees shall not be bound to use the Food Areas, or
                   otherwise utilize the food and beverage services of the Licensee, while on the
                   Premises. For social, business or other functions which may take place on the
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                     Premises and on at least five (5) days notice to the Licensee, Canada Post shall
                     have the right to use cafeteria facility space without utilizing the food and
                     beverage services of the Licensee that are provided therein.

         (f)         The Licensee shall operate the Food Areas in such a manner as not to disrupt
                     Canada Post's operations on the Premises and shall limit its activities on the
                     Premises to the Food Areas themselves.

         (g)         The Licensee shall have access to the Food Areas only through the entrances and
                     routes established by Canada Post.

         (h)         The Licensee shall regularly clean the kitchen floors and counters and the
                     equipment in the Food Areas.

3.0      Canada Post to Supply

         Canada Post shall supply, at its own cost,
               (a)      the Food Areas including the provision, maintenance, repair and replacement
                        of all equipment required for the provision of the Food Services (unless
                        otherwise specified herein);
               (b)      adequate means of garbage storage, disposal and/or removal;
               (c)      heat, light, power, fuel, hot and cold water sufficient to meet sanitary standards
                        for dish and pot washing, together with outlets and connections (collectively
                        “Utilities”);
               (d)      the maintenance, decoration and repair of the Premises as Canada Post
                        considers reasonably necessary, all at times and in a manner that will not
                        unreasonably interfere with the operation of the Food Service Facilities;
               (e)      the regular cleaning of ceilings, walls, light fixtures, and grease traps, filters,
                        hoods, canopies, in the kitchen, servery and dining areas and deep clean once
                        per month;
               (f)      rodent and pest control for the Premises, including the Food Areas;
               (g)      regular cleaning of the cafeteria and servery floors and deep clean once per
                        month;
               (h)      adequate storage facilities to permit the maintenance of appropriate product
                        inventory;
               (i)      adequate access for the Licensee to the Food Areas and to the locations of the
                        vending equipment in the Premises;
               (j)      all electrical power and water to operate the vending equipment together with
                        all necessary outlets and connections therefor;


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               (k)      janitorial and security services in the areas around the vending equipment to
                        the same level as is provided with respect to the rest of the Premises; and
               (l)      adequate security for the Premises.


4.0      Left blank

5.0      Hours of Operation

         The Licensee shall operate the Food Areas on a continuous basis from [to be
         determined]. By notification to the Licensee, Canada Post may modify by mutual
         agreement between the parties.

6.0      Employees

         (a)         The Licensee shall, at its own expense, supply all personnel necessary for the
                     operation of the Food Areas.

         (b)         The Licensee shall ensure that its personnel are properly trained, have been
                     medically screened and at all times are medically fit to engage in the preparation
                     of food items.

         (c)         The Licensee shall ensure that its personnel abide by Canada Post's safety,
                     security and other applicable standards on the Premises. Each of the Licensee's
                     personnel shall, in accordance with Canada Post's applicable region security
                     program including a security clearance, be photographed by Canada Post for the
                     purpose of the assignment of an identification card and shall show such card upon
                     request when entering or otherwise on the Premises.

       (d)     The Contractor shall ensure that the Contractor's Personnel who will be present on the
               Corporation's premises in relation to this Agreement, comply with the Corporation's
               safety and security procedures.

       (e)     The Corporation’s general security requirements are set out in Schedule E. However,
               for the purposes of this Agreement, the Contractor is not required to comply with the
               paragraph that is numbered 3. Electronic Data Processing or Production in
               Schedule E. Without limiting the generality of any of the provisions set out in the
               body of this Agreement, the Contractor agrees to meet all the other requirements set
               out in Schedule E.

       (f)     For the purposes of the paragraph that is numbered 1 in Schedule E, the Request for
               Private Sector Organization Screening (PSOS), that is, the security level required of
               each of the Contractor and its subcontractors, is “Protected B”.

       (g)     The deadline for the Contractor being in full compliance with the security
               requirements specified in clauses (e) and (f) above is 6 months after the start date
               of this Agreement.
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       (h)       The Licensee shall ensure that its personnel are uniformed in a manner that is
                 mutually satisfactory to Canada Post and the Licensee.

       (i)       The Licensee shall ensure that a managerial employee, or assistant thereto, is at all
                 times present on each of the Premises.

       (j)       Where the Licensee is advised, by written notice from Canada Post, that an officer,
                 employee, servant, agent or other person under the supervision or control of the
                 Licensee is for any reason objectionable, unsatisfactory or otherwise undesirable, the
                 Licensee shall, within seven (7) days after receipt of the notice, take appropriate
                 measures to correct the situation.

       (k)       The Licensee shall ensure that its personnel can serve the Canada Post employees in
                 both official languages.

       (l)       ensure employees adhere to proper HACCP and hygiene practices;

7.0      Provision of Food Services

         The Licensee shall, at its own expense:

         (i)        provide all necessary provisions and groceries, of the best available quality,
                    necessary to provide meals and services of high standards that are acceptable to
                    Canada Post and suitable in all respects for the patrons of the Food Area.

         (ii)       prepare menu content in consultation with a dietitian and obtain Canada Post's
                    approval of all menu content, including changes to menu content.

         (iii)      ensure that each menu offers a choice of at least two (2) complete and balanced
                    full course meals, priced at two levels, as well as such quantity of other food and
                    beverage items as Canada Post may direct from time to time.

         (iv)       change menus daily, rotate menus weekly, prepare menus in both official
                    languages and display menus prominently in cafeteria facilities.

         (v)        ensure that, in its operation of the Food Areas, it complies with all safety, security
                    and other applicable standards of Canada Post.

         (vi)       provide vending and other services as specified, including all necessary vending
                    machines and other equipment and including the labour to service, clean and
                    otherwise maintain said vending machines and equipment, as well as all necessary
                    provisions and groceries of the best available quality necessary to provide meals
                    and services of high standards that are acceptable to Canada Post and suitable in
                    all respects for the patrons of the Food Area.



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         (vii)     equip specified locations on the Premises with food and beverage vending
                   machines acceptable to Canada Post and the Licensee.

         (viii) not serve or permit to be served any alcoholic beverages whatsoever.

8.0      Equipment

         (a)       The Licensee shall provide, install (where applicable, and including making any
                   necessary connections and taking other necessary actions), maintain, repair and
                   replenish or renew, at its own expense and to the satisfaction of Canada Post, all
                   equipment required to operate the Food Areas including:

                   (i)    all vending machines and related equipment necessary to service all rest
                          areas in the Premises;
                   (ii)   cutlery, glassware, plastic utensils, china, paper or plastic plates, bowls and
                          cups, pots, pans, ladles, scoops, knives, straws, paper goods, condiment
                          stands, napkin dispensers, salt & pepper shakers and other items which
                          may be necessary and suitable to the catering operation;
                   (iii)   any necessary cooking utensils and other related equipment;
                   (iv)   linens and uniforms;
                   (v)    serving trays;
                   (vi)   menu boards, signage;
                   (vii) merchandising, promotional material;
                   (viii) all necessary cleaning supplies and equipment.

         (b)       The Licensee shall maintain in good repair any equipment provided to it by
                   Canada Post, including the equipment listed in Schedule "B" and "C", and for
                   greater certainty shall not do nor suffer nor permit to be done, any act or thing
                   which may impair, damage or injure any part of the equipment supplied by
                   Canada Post beyond the damage occasioned by ordinary wear and tear.

                   Notwithstanding the foregoing, Canada Post shall be required to maintain, replace
                   or repair the equipment provided to the Licensee by Canada Post as reasonably
                   necessary other than that occasioned by the negligence of the Licensee, shall be
                   the responsibility of Canada Post.

         (c)       The Licensee shall replace or repair, as the case may be, at the Licensee's own
                   expense, equipment provided to the Licensee by Canada Post that is damaged or
                   destroyed as the result of the negligence of an officer, agent, employee or other
                   person acting on behalf of or under the control or supervision of the Licensee.
                   Such replacement shall become the property of Canada Post.

         (d)       The Licensee shall not remove Canada Post's equipment from the Food Area at or
                   in which it resides, at any time or for any reason, without the prior written consent
                   of Canada Post.

9.0      Cleaning Services

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         The following cleaning tasks are the responsibility of the Contractor and in no way limit
         the generality of the services noted in other sections of this RFP. The Contractor will be
         responsible for ensuring that the cafeteria servery and kitchen areas are kept clean at all
         times. The Contractor will also be responsible to keep vending machines clean and in
         proper working order at all times.

         Cleaning in the kitchen area will include all food preparation and cooking equipment,
         walk-in refrigerators and freezers, shelving, walls, ware washing equipment, etc. Cleaning
         in the cafeteria servery area will include all serving counters, food equipment,
         merchandisers, cashier stations and condiment counters etc. Cleaning will include the
         vending machines. More specifically, the Contractor will be required to:

         (a)       clean daily all designated food service receiving storage, preparation, production,
                   and ware washing areas as well as any food service offices in the main kitchen
                   area;

         (b)       pick up daily all trays on the tables in the dining room and clean all surface tables
                   and edges as often as needed during the day;

         (c)       clean daily all service and preparation areas in the main cafeteria servery areas as
                   required prior to each break and breakfast, lunch and dinner service period;

         (d)       clean on a daily basis, all cutlery/condiment and cashier stations in the main
                   cafeteria servery and main dining/seating areas;

         (e)       stock and clean daily soap and towel dispensers;

         (f)       clean walls below 6 feet in the kitchen and cafeteria servery area as needed;

         (g)       clean all cooking and other kitchen equipment weekly;

         (h)       clean all vending machines internally and externally as directed by Canada Post;

         (i)       provide “WHMIS” training to all food service employees;

         (j)       clean microwave ovens supplied by Canada Post or yourself in the main dining
                   room/seating area;

         (k)       ensure any cleaning compound used are compliant with Hazard Materials
                   Standards (H.M.S.) and ensure food service personnel are trained in H.M.S.

         (l)       providing appropriate closed garbage bins and daily garbage removal from the
                   cafeteria area to the applicable garbage storage room;

         (m)       the Licensee shall comply with any waste management program which Canada
                   Post may from time to time be engaged in. Without restricting the generality of

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                   the foregoing, the Licensee may be required to participate in composting, waste
                   and materials separation, use of special containers, or use of specified cleaning,
                   maintenance or other products related to the ongoing operation of the Food Areas.

10.0     Receiving of Supplies and Equipment

         The Licensee shall receive supplies and equipment only at the times and through the
         loading areas within the Premises as may be designated from time to time by Canada
         Post, and shall comply with Canada Post's directions respecting movement of supplies
         and equipment within the Premises.

11.0     Pricing

         (a)       The prices charged by the Licensee, for all food and beverage items sold at the
                   Food Areas, shall be comparable to prices charged at similar locations, shall
                   include all applicable taxes and shall be subject to the prior written consent of
                   Canada Post

         (b)       In the event that the Licensee wishes to modify the prices, it shall submit the
                   proposed prices, together with sufficient supporting evidence for the changes, to
                   Canada Post for its prior approval.

         (c)       All sales made by the Licensee to Canada Post's employees shall be on a cash
                   basis. Sales made to Canada Post for catering or other services shall be invoiced
                   to the Canada Post department requesting the services. The Licensee shall accept
                   payment for catering services by mean of the VISA corporate credit card.

         (d)       Canada Post may, in accordance with its right of audit as contained in section 14,
                   from time to time audit the financial and other operations of the Licensee in
                   relation to the Food Areas in order to determine whether the prices charged by the
                   Licensee are the best prices and are reasonable in the circumstances. In the event
                   that Canada Post determines that the prices charged should be modified, it shall
                   notify the Licensee in writing and the Licensee shall make such modifications as
                   are approved by Canada Post.

12.0     Taxes and Permits

         The Licensee agrees to pay all taxes, levies or other assessments relating to the operation
         of the Food Areas, including taxes for food and beverage products sold, which are
         lawfully imposed by any taxing authority in respect of the Food Areas and to obtain and
         pay for all necessary permits and licenses from competent authorities.

13.0     Payment and Financial

         (a)       Unless otherwise expressly stated, all amounts set out in this License are stated in,
                   and shall be paid in, Canadian dollars.


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         (b)       The Licensee shall operate the Food Areas at its own expense, on a profit and loss
                   basis.

         (c)       The Licensee shall keep complete and accurate books of account and other
                   applicable financial and other records with respect to its operation of the Food
                   Areas, all prepared in accordance with generally accepted accounting principles.

14.0     Inspection and Audit

         (a)       The Licensee shall, and shall cause its subcontractors and agents to, provide
                   Canada Post (through Canada Post's authorized representatives) with such records,
                   reports and access to premises as Canada Post may reasonably request for the
                   purposes of conducting an audit to determine compliance by the Licensee with its
                   obligations under this License.

         (b)       For the purposes of clause (a), Canada Post shall have access to and may examine,
                   audit and take copies and extracts from all records including, but not limited to, all
                   activity logs, time sheets, books of account, vouchers, cheques, papers,
                   certificates, licences and other documents that relate to this License. Canada Post
                   agrees to keep confidential, in the manner of a reasonably prudent person, all
                   information contained in those materials provided to it.

         (c)       Notwithstanding the aforementioned, Canada Post shall have the right to enter,
                   inspect and carry out any work in the Food Areas at any time, for any reason and
                   without any prior notice. Any resulting recommendations of Canada Post relating
                   to safety, security or other matters pertaining to the ongoing operation of the Food
                   Areas shall be immediately implemented by the Licensee.

15.0     Liability for Loss or Damage

         (a)       The Licensee shall be liable to Canada Post for loss or damage to the property of
                   Canada Post entrusted to it under this License, occurring while such property is in
                   the care, custody or control of the Licensee from the time of receipt by the
                   Licensee until the time it is returned to Canada Post and Canada Post has
                   acknowledged its receipt. This shall include, without restricting the generality of
                   the foregoing, any loss or damage in relation to the Premises arising out of or in
                   any way connected with the Licensee's operation of the Food Areas.

         (b)       The Licensee shall forthwith pay to Canada Post the full amount of any loss or
                   damage for which the Licensee is liable.

16.0     Insurance and Indemnity
         The Licensee shall at all times indemnify and save harmless Canada Post, including its
         directors, officers, employees and any others for whom it may be responsible in law, from
         and against all losses and damages suffered or incurred by Canada Post, and all claims
         (including claims made under workers' compensation legislation), demands, awards,
         judgments, actions and proceedings in whatsoever forum and by whomsoever made,

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        brought or prosecuted in respect of loss of, damage to or destruction of property or in
        respect of personal injury, including death, or resulting from the breach of any of the
        obligations set out in this License, including all associated costs and expenses (including
        legal fees and disbursements) suffered or incurred by Canada Post, arising out of or in any
        way connected with the Licensee's performance or non-performance under this License
        and whether or not caused by the negligence of the Licensee, its directors, officers,
        employees or agents.

        The contractor acknowledges that it is solely responsible for arranging and maintaining
        such workers' compensation or other coverage as may be required in the Province(s) in
        which the Contractor will be performing its obligations under this Agreement

        The Licensee shall, at its own expense, procure and maintain in force for the duration of
        this License:

        a) Commercial general liability insurance, with a minimum limit of FIVE million
           dollars ($5,000,000.00) inclusive for personal injury, bodily injury (including death)
           and property damage for any one occurrence or series of occurrences arising from one
           cause, no aggregate. The policy shall provide coverage for, but not be limited to, all
           premises and operations of the Licensee, liability for products and completed
           operations, non-owned automobile, contractual liability, Tenants Legal Liability and
           liability specifically assumed under this License. Canada Post shall be added to the
           policy as an additional insured and the policy shall contain Severability of Interests
           and Cross Liability clauses.

        b) All risk property insurance of sufficient limit to cover all property of Canada Post
           entrusted to the Licensee. Canada Post shall be added to the policy as a loss payee.


        c) Broad form insurance providing coverage for, but not limited to, theft, destruction,
           disappearance and employee dishonesty in respect of the Licensee's employees
           assigned by the Licensee to perform services. Such theft destruction, disappearance
           and employee dishonesty coverage shall apply to money, securities and other property
           owned or handled by the Licensee, or for which the Licensee is legally liable. The
           limit of liability shall not be less than one million dollars ($1,000,000.00)

        d) with respect to any one act or any number of acts committed by any of the Licensee's
           employees acting alone or in collusion with others. "Licensee's employees" means one
           or more persons while in the regular service of the Licensee in the ordinary course of
           the Licensee's business and whom the Licensee compensates by salary, wages and/or
           commissions.

         The Licensee shall deliver to Canada Post, at the time of the signing of this License, a
         certificate or certificates of insurance as evidence that the required coverages are in effect
         and that Canada Post shall be given sixty (60) days prior written notice of cancellation or
         expiry of, or material change to, such coverages. The Contractor shall deliver to Canada
         Post a replacement or renewal certificate or certificates a minimum of 10 business days
         prior to the expiry.
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         The foregoing insurance provisions shall not limit the insurance required by municipal,
         provincial or federal law. The insurance coverages shall be underwritten by an insurer or
         insurers, licensed in the provinces in which the Licensee is conducting business under this
         License, as acceptable to Canada Post acting reasonably. It shall be the sole responsibility
         of the Licensee to determine what additional insurance coverages, if any, are necessary
         and advisable for its own protection or to fulfill its obligations under this License. Any
         such additional insurance shall be provided and maintained by the Licensee, also at its
         own expense.

         Prior to the expiration of a ten (10) business day period immediately following the
         commencement of this License, and within the period that commences ten (10) business
         days before and ends ten (10) business days after each anniversary of the date of this
         License, for so long as the Licensee has outstanding obligations under this License, the
         Licensee shall provide Canada Post with a certificate or certificates of clearance from the
         Workers' Compensation Board(s) in the province(s) in which the Licensee will be
         performing its obligations under this License. In addition to the certificates of clearance to
         be provided at the times set forth above, the Licensee shall provide Canada Post with
         certificates of clearance at such other times as Canada Post may require.

17.0     No Interest in Lands

         This License does not give any interest in any part of the Premises to the Licensee and
         Canada Post shall remain the exclusive and sole owner thereof. Any installation,
         placement of equipment or any other work carried out by the Licensee pursuant to the
         operation of the Premises, shall not constitute an improvement or benefit to the Premises.

18.0     Alterations

         Except as provided for in this License, no alterations, changes or additions are permitted
         to the Premises or to the equipment supplied by Canada Post without the prior written
         consent of Canada Post.

19.0     Obligation to Return Canada Post's Property

         The Licensee agrees to return to Canada Post, forthwith following a request from Canada
         Post, all property of Canada Post that was provided to the Licensee by Canada Post for
         use by the Licensee in carrying out its obligations under this License.

20.0     Advertising and Signage

         The Licensee shall not engage in any direct or indirect advertising, solicitation or
         promotion of any sort with respect to the Food Areas and their operation, without the
         prior written approval of Canada Post, and shall not refer, expressly or by implication, to
         Canada Post or to this License in any advertising or other publicity release.



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         The Licensee shall comply with Canada Post's requirements respecting signage including,
         without restricting the generality of the foregoing, those respecting design, content,
         language, size and location. All signage shall be submitted to Canada Post for prior
         approval, prior to it being erected.

21.0     Termination

         (a)       Canada Post may terminate this License in whole or in part, without liability,
                   without cause and with respect to any or all of the Premises, by giving the
                   Licensee at least one hundred twenty (120) days prior written notice.

         (b)       The Licensee may terminate this License in whole or in part, without cause and
                   with respect to any or all of the Premises, by giving Canada Post at least one
                   hundred and twenty (120) days prior written notice.

         (c)       If the contract is terminated by either party prior to the end of the contract period,
                   Canada Post retains the right to purchase the items (other than vending machines)
                   which were supplied by the Potential Contractor.
                   Canada Post has the right not to purchase the items supplied and installed by the
                   Potential Contractor. In this case the Potential Contractor will be responsible for
                   the costs to remove all such items and to make good any physical damages cased
                   by the removal of equipment and other items or dismantling of the adjustments
                   made to the current facilities

         (d)       For the purposes of this License, the following shall constitute events of default
                   (hereinafter referred to as "Events of Default"):

                   (i)     if a petition is filed or resolution passed or an order on its business made or
                           the Licensee agrees to make a bulk sale of its assets or if the Licensee
                           otherwise ceases or threatens to cease to carry on its business;

                   (ii)    if the Licensee commits or threatens to commit an act of bankruptcy, or if
                           the Licensee becomes insolvent or bankrupt or makes an authorized
                           assignment or if a bankruptcy petition is filed and presented against the
                           Licensee or if a receiver or a receiver-manager is appointed in respect of
                           the business and affairs of the Licensee either by way of private instrument
                           or through court proceedings;

                   (iii)   if an order or decision is entered with respect to the Licensee under the
                           Company Creditors Arrangement Act, R.S.C. 1985, Chapter C-36, as
                           amended, or similar legislation, or the Licensee takes advantage of the
                           provisions of any bankruptcy or insolvency legislation;

                   (iv)    if any execution, sequestration, extent or any other process of any court
                           becomes enforceable against all or substantially all of the Licensee's
                           property or if a distress or analogous process is levied against all or
                           substantially all of the property of the Licensee; or

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                   (v)    if the Licensee otherwise neglects or fails to perform or observe any of its
                          obligations under this License and fails to cure the breach to the
                          satisfaction of Canada Post within ten (10) days following written notice to
                          the Licensee.

         (e)       Canada Post may, upon the occurrence of any of the Events of Default listed in
                   section 19(c), and in addition to any rights or remedies available to it under this
                   License or by law, terminate this License in whole or in part, with respect to any
                   or all of the Premises and without liability of any kind.

         (f)       Notwithstanding any of the aforementioned, Canada Post shall at any time be
                   entitled to review the quality and efficiency of the Food Areas in consultation with
                   the patrons, to determine whether this License should continue in force or be
                   terminated.

22.0     Compliance with Law

         The Licensee shall comply with all legislation directly or indirectly applicable to the
         performance of its obligations under this License.

23.0     Records and Reports

         The Licensee shall report to Canada Post at such times and on such matters relating to this
         License as Canada Post may reasonably require.

24.0     Notice

         Any notice or other communication with respect to this License shall be effectively given
         if delivered or sent by regular mail or facsimile, addressed:

         (a)       in the case of Canada Post to:

                          [ADDRESS]

         (b)       in the case of the Licensee to:

                          [ADDRESS]

         or to any other address of which a party advises the other party in writing. Any notice
         that is delivered shall be deemed to have been received on delivery; any notice that is
         mailed shall be deemed to have been received four (4) days after having been mailed; any
         notice that is sent by facsimile shall be deemed to have been received on the day the
         sender receives a facsimile or other answer back that confirms its receipt.

25.0     Representations and Warranties


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         The Licensee represents and warrants that it has the capacity, power and lawful authority
         to enter into this License and to fulfill any and all covenants set forth in this License to be
         fulfilled by it, and that the terms of this License are not in breach of any law, regulation,
         by-law, agreement, charter document or covenant by which the Licensee is governed or
         otherwise bound.

26.0     Confidentiality

         The Licensee shall keep confidential all information received from Canada Post in
         connection with this License. The Licensee shall not use such confidential information
         except as required to carry out its obligations under this License.

         The parties recognize that this License contains information which is commercially
         sensitive and agree to keep the entire contents of this License confidential and not to make
         any disclosures to any third parties unless required by law to do so or unless prior written
         consent is obtained from the other party.

27.0     Independence of Licensee

         The Licensee shall provide the personnel and services required to carry out its obligations
         under this License as an independent contractor. There is no relationship of joint venture,
         partnership or agency between Canada Post and the Licensee. As between Canada Post
         and the Licensee, all personnel provided by the Licensee shall be and shall remain
         employees of the Licensee who shall be responsible for the arrangement of substitutions,
         pay, supervision, discipline, unemployment insurance, workers' compensation, leave,
         income tax, Canada or Quebec Pension Plan contributions and all other matters arising out
         of the relationship between employer and employee.

         The Licensee shall indemnify Canada Post and hold Canada Post harmless with respect to
         all claims, brought by any party, that are based on an employer-employee relationship
         arising out of the work to be performed under this License.

28.0     Waiver

         No delay or omission by Canada Post to exercise any right or power accruing upon any
         non-compliance or default by the Licensee with respect to any of the terms of this License
         shall be construed as a waiver of such non-compliance or default.

         A waiver by Canada Post of any breach of the terms of this License shall not be construed
         to be a waiver of any preceding or succeeding breach.

         Canada Post shall not be deemed to have waived any matter under this License unless
         Canada Post has given the Licensee a written notice that Canada Post has waived the
         matter in question.

29.0     Assignment


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         The Licensee shall not assign, subcontract or otherwise dispose of this License or any part
         thereof without the express written consent of Canada Post and any attempt to make such
         assignment, subcontract or disposal without such consent shall be void. Specifically, but
         without restricting the generality of the foregoing, Canada Post shall have the right of
         approval of all intended subcontractors.

         Canada Post, on notice to the Licensee, may assign the benefits of this License or make
         any arrangements that would result in the performance, in whole or in part, of the
         obligations of Canada Post under this License by a person other than Canada Post. Such
         notice to the Licensee may be given either prior to or after the execution of such an
         assignment or the making of such arrangements by Canada Post.

30.0     Time

         Time shall be of the essence in this License.

31.0     Enurement

         This License shall enure to the benefit of, and be binding upon, the successors and assigns
         of Canada Post and the Licensee respectively.

32.0     Severability

         If any term of this License is found to be illegal or unenforceable by a court of competent
         jurisdiction, that term shall be deemed severed from this License.

33.0     Surviving Provisions

         The terms of this License relating to:

                   (a)   payments owing,
                   (b)   indemnification,
                   (c)   warranty obligations,
                   (d)   confidentiality,
                   (e)   publicity, and
                   (f)   the Licensee's responsibility for costs incurred to remedy errors.

         shall survive the termination of this License.

34.0     Language

         The Licensee and Canada Post acknowledge that they have required this License to be
         written in English. Les parties aux présentes reconnaissent qu'elles ont exigé que la
         présente entente soit rédigée en anglais.

35.0     Entire License and Amendments


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         (a)       With respect to the subject matter of this License, this License constitutes the
                   entire agreement between the Licensee and Canada Post. There are no agreements
                   collateral to this License and the terms and conditions of this License shall
                   supersede the terms and conditions set out on the Licensee's confirmation and
                   invoices. Without limiting the generality of the preceding sentence, no local,
                   general or trade customs shall be deemed to vary the terms of this License.

         (b)       This License may only be amended by written agreement signed by the duly
                   authorized representatives of the Licensee and Canada Post.

36.0     Conflict of Interest

         No employee of Canada Post shall be admitted to any share or part of this License or to
         any benefit arising therefrom.

37.0     Force Majeure

         Either party shall be excused from performing its obligations under this License only for
         reasons of natural disaster, war, riot, embargo, fire or act of a public enemy, for the
         duration of such event, provided the party relying upon such event gives prompt notice to
         the other of the occurrence or expected occurrence. The party relying on such event shall
         use its best efforts to mitigate the effect of any such event, provided that in the case of the
         Licensee, such efforts shall not result in additional cost to Canada Post. The Licensee is
         required to perform its obligations in all circumstances except those listed above.

         The notice described above is to contain a description of the situation and of the portion of
         the work affected by the situation and a written description of workaround plans,
         including alternate sources and any other means that the party delayed will utilize to
         endeavour to prevent any further delay of the work and recover lost time. This description
         is to contain such additional information as is reasonably required by the other party.

         In the event of a strike of the employees of Canada Post or a lock-out of Canada Post,
         Canada Post will advise the licensee to stop the operations during the strike or the lock-
         out or maintain the operations even if the business is lower. Under these circumstances,
         the licensee acknowledges that Canada Post will not be responsible for any damage or
         loss

38.0     Gender and Number

         In this License, where applicable, words of the masculine gender shall include the
         feminine, the singular shall include the plural, and vice-versa, and all sentences so
         affected shall be construed as being grammatically correct.

39.0     References to Days

         All references to days in this License are references to calendar days unless the reference
         is to business days.

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40.0     Separate Counterparts

         This License may be executed in separate counterparts each of which, when so executed,
         shall be deemed to be an original of this License and such counterparts together shall
         constitute but one (1) and the same instrument.

41.0     Governing Law

         This License shall be governed and construed in accordance with the laws of the Province
         of Ontario and the laws of Canada applicable therein. All legal proceedings arising out of
         this License shall be brought in a court of competent jurisdiction in the Province of
         Ontario, and each of the parties hereby at torn to the jurisdiction of such court with
         respect to such proceedings.



IN WITNESS WHEREOF the parties have executed this License.


[LICENSEE]                                                    CANADA POST

_________________________                               _________________________
Signature                                               Signature

_________________________                               _________________________
Title                                                   Title

_________________________                               _________________________
Date                                                    Date




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                                  SCHEDULE "A"

                             CURRENT MENU PRICE LIST



                                  SCHEDULE "B"

    LIST OF EQUIPMENT PROVIDED BY CANADA POST TO THE CONTRACTOR



                                  SCHEDULE "C"

                   LIST OF EQUIPMENT PROVIDED BY THE CONTRACTOR



                                  SCHEDULE "D"

                            LEFT BLANK INTENTIONALLY




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                                           Schedule E
                                      Security Requirements

Interpretation Note: Refer to the Questions and Answers attached as Appendix 1 to this
Schedule for background information.

General
To the extent the Contractor is not, as of the signing date of this Agreement, in full compliance
with the requirements set out in this Schedule, the Contractor shall use its best efforts to ensure
that full compliance is achieved as soon as possible after the signing date but in no event later
than the deadline specified in the body of the Agreement under the article entitled “Safety and
Security”.

In order to assist the Contractor in obtaining the security designations, clearances and approvals
required under this Schedule, the Corporation agrees to sponsor the Contractor. The Contractor in
turn shall sponsor each of its subcontractors. In this regard, the Contractor agrees to fully
cooperate, and to ensure that each of its subcontractors also fully cooperates, with CIISD and the
Corporation. Any extensions to the deadline specified in the body of the Agreement under the
article entitled “Safety and Security” shall be granted only if there is a delay solely attributable to
CIISD and not attributable in any way to any failure on the part of the Contractor or any of its
subcontractors to immediately respond to all requests for information or access.

In order for the deadline specified in the body of the Agreement under the article entitled “Safety
and Security” to be met, the Contractor is required to immediately respond, and to ensure that
each of its subcontractors immediately responds, to all requests for information and access
received from the Corporation or from the Canadian and Industrial Security Directorate, Public
Works and Government Services (“CIISD”).

1.       Private Sector Organization Screening
It is an essential term of this Agreement that the Contractor and each of its subcontractors who
will have access

         (i)     to “Protected Information”, as per the meaning ascribed to that term by the
         Canadian and Industrial Security Directorate, Public Works and Government Services
         (“CIISD”) which is “information related to other than the national interest that may
         qualify for an exemption or exclusion under the Access to Information Act or Privacy Act,
         (ii)    to mail,
         (iii) to any of the Corporation’s assets, or
         (iv)    to any of the Corporation’s secure sites

first obtains a Private Sector Organization Screening with approved Document Safeguarding
issued by CIISD at the level specified in the body of this Agreement under the article entitled
“Safety and Security” (such Private Sector Organization Screening being a “PSOS”).

Subject to any delays solely attributable to CIISD and not attributable in any way to any delay or
failure to provide the Corporation with the information the Corporation requests in order to
sponsor the Contractor, or to any delay or failure on the part of the Contractor to sponsor a

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subcontractor, or to any delay on the part of the Contractor or a subcontractor to provide CIISD
with access, information or whatever CIISD requires, if the Contractor or any of its
subcontractors fails to obtain a PSOS as required under this Schedule or fails to maintain a PSOS
during the Term, the Contractor shall be deemed to be in default of the security requirements of
this Agreement with respect to each such failure and as a result the Corporation shall have the
right to terminate this Agreement in accordance with the termination provisions set out in the
body of this Agreement.

2.     Personnel Security Screening
The Contractor shall ensure that each of the Contractor’s employees and each of the individuals
involved on behalf of its subcontractors who requires access of the nature described in
Requirement 1 first obtains “Reliability Status” from CIISD.

Subject to any delays solely attributable to CIISD and not attributable in any way to any failure to
provide CIISD with access, information or whatever CIISD requires, if any of the individuals
requiring “Reliability Status” under the preceding sentence fails to obtain the required
“Reliability Status” as required under this Schedule or fails to maintain such “Reliability Status”
while the individual still has such access, the Contractor shall be deemed to be in default of the
security requirements of this Agreement with respect to each such failure and as a result the
Corporation shall have the right to terminate this Agreement in accordance with the termination
provisions set out in the body of this Agreement.

3. Electronic Data Processing or Production
With respect to any electronic data processing or production that is required under this
Agreement, it is a requirement that the Contractor and each of its subcontractors who will be
involved in carrying out such data processing or production be approved by CIISD. The approval
will allow these tasks to be performed at the level of Protected “B” but only by the Contractor
and those of its subcontractors with respect to whom CIISD approval has been given.

Subject to any delays solely attributable to CIISD and not attributable in any way to any failure to
provide CIISD with access, information or whatever CIISD requires, if the Contractor or any of
its subcontractors performs any electronic data processing or production other than in accordance
with this Schedule, the Contractor shall be deemed to be in default of the security requirements of
this Agreement and as a result the Corporation shall have the right to terminate this Agreement in
accordance with the termination provisions set out in the body of this Agreement.

4.     Reporting re Protected Information
The Contractor shall, at any time on demand, acquaint and provide the Corporation with all
Protected Information that has been provided by the Corporation to the Contractor.

5.      Mail
For the purpose of this Agreement, “mail” shall have the meaning ascribed to it in the Canada
Post Corporation Act, R.S.C., 1985, Chap. C-10, as amended from time to time.

         General Security Measures to be taken with respect to Mail
         The Contractor acknowledges that there are a wide variety of security risks inherent in the
         handling, access, care, custody and control, transportation and delivery of mail.

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         Without limiting the generality of any of its other obligations under this Agreement, the
         Contractor shall ensure, at all times, that it has in place adequate security measures,
         satisfactory to the Corporation, to guard against breaches and threatened breaches of
         security in relation to the mail including, but not limited to, theft of, damage to, disclosure
         of, or loss of any mail item that has been provided to the Contractor by the Corporation
         and any mail item to which the Contractor otherwise has access.

         The Contractor’s security measures shall also include, but not be limited to, measures to
         ensure

                   (i)    the security of physical property,
                   (ii)   the honesty and reliability of the Contractor’s employees and
                   subcontractors and each of the individuals involved on behalf of its
                   subcontractors,
                   (iii) the security of the transportation utilized, and
                   (iv)   the security of working and storage facilities.

         In the event of any breach or threatened breach of security, the Contractor shall
         immediately inform the Corporation and take appropriate and immediate action to remedy
         the situation including, but not limited to, the prompt replacement of any of its employees
         or subcontractors, as may be necessary, having regard to all circumstances.

         Mail Protection
         The Contractor shall ensure that all mail items tendered or provided to or otherwise
         received by the Contractor in carrying out its obligations under this Agreement are at all
         times protected from theft, weather, damage of any kind and all other risks including loss.
         Without restricting the generality of the foregoing, the Contractor shall also ensure that
         mail is not opened, kept, delayed, detained, abandoned, misdirected, obstructed or
         otherwise tampered or interfered with in any manner whatsoever by any of the
         Contractor’s employees, subcontractors or employees of any of its subcontractors.

         Liability for Loss or Damage to Mail
         Without limiting any general liability and indemnity provisions that are set out in the
         body of this Agreement, the Contractor assumes all risk and shall be liable to the
         Corporation for any loss or damage to any mail items tendered to, provided to, or
         otherwise received by, the Contractor, while such mail is in the care, custody or control of
         the Contractor. Where such loss or damage occurs the Corporation shall have the right to
         deduct the amount of such loss or damage from any monies due to the Contractor from
         the Corporation. The Corporation shall also have the right to otherwise seek recovery at
         law or in equity, with the Corporation having the unfettered right to determine, in the
         discretion solely of the Corporation, which means of recovery it shall take.


Appendix 1 to Schedule

1. Q. What is a Private Sector Organization Screening (PSOS)?

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A. A “PSOS” is an administrative determination by the Canadian and International Industrial
Security Directorate (CIISD) of Public Works and Government Services Canada (PWGSC) that
an organization is eligible, from a security viewpoint, for access to Protected Information or
assets or secure sites. It will require the appointment and security screening of a Company
Security Officer (CSO), and in certain cases the key senior officials; approval of physical security
and / or information technology security safeguarding capability at the organization's site, where
required; and execution of a Security Agreement, where required.

2. Q. How does an organization become eligible to obtain a PSOS?

A. In response to a Canada Post request for proposal (RFP) that calls for access to Protected
Information, assets or secure sites, Canada Post, as an authorized sponsor through its registration
in the Industrial Security Program (ISP), can at its discretion sponsor bidders to the RFP. At its
discretion, Canada Post will complete and submit a sponsorship request to the “CIISD” for
winning bidders that do not already have this screening or for suppliers in support of an existing
contract that may now be required to access Protected Information, assets or secure sites.

3. Q. What is the cost to obtaining a PSOS?

A. There is no cost to the organization to obtain this security verification.

4. Q. How long will it take to get a PSOS?

A. Canada Post has ten days to complete and submit a request for a PSOS to CIISD from the time
the winning bidder is identified. However, the process with CIISD could take four to six months.

5. Q. How long does a PSOS remain in effect?

A. A PSOS granted by the CIISD is granted for the performance of a specific contract. The
organization will be advised, in writing, by CIISD, when the PSOS is about to be terminated, and
will be given the opportunity to show cause for PSOS continuation. A PSOS may be suspended
or revoked by CIISD if the organization fails to maintain the required security standards.

6. Q. Is there any other security screening required of an organization after a PSOS is
granted?

A. All organizations that provide employees / contractors to work on Canada Post projects must
ensure those employees / contractors hold a Reliability Status. A Reliability Status is a basic
security screening required for access to Protected Information, assets or secure sites. It is the
minimum-security screening an individual must undergo prior to working at Canada Post,
regardless of the duration of the work. Once an organization has received a PSOS clearance from
CIISD, it can use the CIISD website to obtain Reliability Status for those employees / contractors
who will be working on Canada Post projects. The turn-around time for a Reliability Status is
normally 24 hours.

7. Q. What checks are required to obtain a Reliability Status?

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A. The checks entail the review of personal information such as reference enquiries, verification
of qualifications, criminal records checks and when required credit checks.

8. Q. What is Protected Information?

A. Most of Canada Post’s information and assets are protected. This designation of assets and
information depends on the degree of potential injury to the Corporation if it is disclosed:
Protected A, Protected B and Protected C. Canada Post will identify the designation of assets and
information.

         Waste Management: Waste shall be strictly controlled as part of a regulated and
         documented process. The security plan must define how non-conforming product (waste,
         spoilage, print overrun) are to be controlled, stored and destroyed. Canada Post's
         expectation is that this process should form the basis of a clear reconciliation process
         between manufacturing materials, production operation, finished products and waste
         management.

         Transportation: The organization shall provide a high degree of security to products in
         transit. The plan shall define security measures for transportation of finished products to a
         point where Canada Post accepts custody. These requirements apply to the transportation
         of unfinished products if different processing facilities are used for printing and finishing
         the products. These requirements also apply when the organization uses its own
         equipment or subcontracts with another carrier.

         Security Management: The provision of the products and services requires a dedicated
         security team in order to manage the security plan and respond to security incidents. The
         organization must appoint a company security officer and alternates in order to take
         overall responsibility for the development, implementation and monitoring of the security
         plan. The plan shall define the organization’s security organization, responsibilities,
         appointment process and reporting relationship.




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                                           Schedule "F"

Cafeteria and Vending Machine Supplier Guidelines
Canada Post is committed to Employee Engagement. In an effort to enhance the health and
wellness of our workforce, we ask that all of our onsite food service providers work with us to
ensure that food items offered in our facilities is of the highest nutritional quality possible. It is
particularly important, where facilities have 24-hour operations, for employees on all shifts to
have access to nutritious foods.

We have developed, for your information, a list of recommended nutritional guidelines and
expect that you make a reasonable effort to respect these guidelines in your current and future
food offerings to Canada Post employees.

As supplier contracts expire, these guidelines will become part of the rated requirements for new
or renewed contracts, and quality reviews will be conducted randomly with a view to ensuring or
increasing healthy food choices.

Attached, for your review, are vending machine and cafeteria food and beverage standards. They
were developed using healthy eating criteria in Canada and the United States and validated by a
qualified dietician.


Canada Post Cafeteria Supplier Guidelines*
Nutrition Standard

The nutrition standard supports Canada’s Guidelines to Healthy Eating. The supplier meeting the
requirements will offer a variety of nutritious food choices including vegetables and fruit, lower
fat options or substitutions to create healthier food choices.

The cafeteria should offer on a daily basis:

Vegetables and Fruits

    •    Favour dark green and orange vegetables:
         Examples of dark green vegetables: broccoli, romaine lettuce, spinach, snow peas, Swiss
         chard…
         Examples of orange vegetables: carrots, sweet potato, winter squash…
    •    Increase availability of fresh fruits and vegetables instead of bottled juices.
    •    At least 1 snack / dessert should be fruit based:
         For example, fresh fruit, fruit salad in juice, fruit compotes with no sugar added, fruit
         crumble…
    •    Offer at least 4 choices of the following vegetable and fruit choices (excluding deep fried
         vegetables, vegetables in cream or other high fat sauces or dressings such as Caesar
         salad):

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     Leafy Green Salad (1 cup/250 mL minimum)
    Vegetable Salad (1 cup/250 mL minimum)
    Baked, boiled or mashed potato / sweet potato (prepared lower fat dressings)
    Stir-fried vegetables (1/2 cup/125 mL minimum)
    100% Vegetable juice (4 oz /125 mL)
    Tomato sauces, e.g., on pasta (1/2 cup/125 mL minimum)
    Other dark green and orange vegetables (1/2 cup/125 mL minimum)
    Fruit (1 piece)
    Fruit salad (1/2 cup/125 mL minimum)
    100% Fruit juice (4 oz /125 mL)
    Frozen 100% fruit juice bars

Grain Products

    •    Use whole grains on at least 50% of all pre-made sandwiches on bread, bagels, pita, rolls,
         tortillas and wraps etc.
    •    In the made-to-order sandwich bar, if applicable, at least 50% of the bread choices are
         whole grain.
    •    At least 50% of breakfast cereals offered are whole grain (see criteria table below).
    •    Offer at least one homemade style or commercial bought snack / desert, e.g., plain
         popcorn, cereal, pretzels, lower fat cookies etc. that respects the following criteria

Homemade Style:

    •    Low in fat (not more then 3g of fat / serving)
    •    Made from 1 or more whole grain flours or whole grain cereals
    •    0 trans fat (partially hydrogenated oil or vegetable oil shortening)

Commercial Bought:

Cookies (2 average size cookies or 30g)          Muffins
Less than 10g of sugar                           Less than 10g of sugar
Less than 7g of fat                              Less than 5g of fat
Less than 2g of saturated and trans fats         Less than 2g of saturated and trans fats
More than 2g of fibre                            More than 2g of fibre
Cereal bars                                      Cereal (30 g per serving)
Less than 10g of sugar                           Not more than 3g of fat
Less than 5g of fat                              At least 3g of fibres
Less than 1g of saturated and trans fats         Not more than 5g of sugar (10g if with
More than 2g of fibre                            dried fruits)

Milk and Milk Products

    •    At least 2 lower fat (2%, 1% or skim) plain or chocolate milk choices are available.
    •    At least 2 milk snacks such as cheese, yoghurt, milk puddings, frozen iced milk, frozen
         yoghurt are available.

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Meat and Alternatives

    •    At least one meat, fish, poultry or vegetarian entrée choice (could include a salad entrée
         which contains a meat or meat alternative) prepared in a lower fat way.
    •    Regularly offer meals with legumes (beans, peas, lentils) and tofu as a protein rich
         vegetarian alternative.
    •    Weekly offer meals with fish that are neither fired nor breaded
    •    Upon request, remove visible fat from meat and skin from poultry before serving.
    •    Prepared sandwich fillings (e.g., tuna, chicken salad, egg salad, etc.) use low fat
         mayonnaise or other low fat dressings or mixes.

Daily Specials

    •    All daily specials contain at least 3 of the 4 food groups.
    •    Offer low sodium alternatives to sandwiches, soups, pasta dishes, etc.

Other

    •    Use unsaturated oils:
    o    For cooking – Canola, corn, virgin olive, soybean and sunflower;
    o    For salad dressings – Flax, nut, cold pressed olive, sesame.
    •    Avoid fats high in saturated and trans fats such as, butter, hard margarine, lard and
         shortening.
    •    For pie crusts, avoid using fats containing trans fats (lard, shortening, hard margarine).
    •    Use or make available calorie reduced or fat free salad dressings.
    •    Other fat based condiments, dips, spreads, sauces and gravies are lower fat wherever
         possible.
    •    Upon request, other fat based condiments, dips, spreads and sauces or gravies are:
         Served on the side
         Not used on entrees
         Not used on side dishes
         Not used on vegetables
    •    A substitute for French fries or poutine is offered if they are served as part of an entrée.
         The substitute could be: Baked, boiled or mashed potato, vegetables, salad, rice or other
         grain product (prepared in a lower fat way).
    •    A serving of French fries or poutine must include an option of a 112 gram/4 oz size or
         smaller.
    •    Information on ingredients is available upon request.
    •    Water (tap and/or bottled) available at all times.

*NOTE: Evaluation of the implementation of these guidelines may be done periodically by
Canada Post with a view to ensuring or increasing healthy food choices.

                                 _________________________

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Attachment 3: List of Menu Items Proposed at the cafeteria all taxes included
The items below are usually proposed in a work environment cafeteria. Indicate the
prices for these items and add the items you propose in your operating plan.

Items                                       Portion    Prices taxes included
BREAKFAST
2 eggs, toast, coffee
1 eggs, toast, coffee
2 eggs, toast, bacon, coffee
1 egg, toast, bacon, coffee
Toasts with butter NO JAM INCLUDED
Omelette, toast, coffee
Omelette,ham or cheese, toast, coffee
Western omelette
Cereals, milk
Raisin toasts
Toasts
Tomato sandwich
Bacon & Cheese sandwich
Bacon & Tomato sandwich
Fried egg & Bacon sandwich
English muffin
Bagel with butter
Bagel with cream cheese
Toast cheese , coffee
SIDE ORDERS
Bacon or sausages
Ham
Breakfast potatoes
Slice cheese cheddar
Individual jam , peanut butter, honey


DINNER
Special of the day (hot table)

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Special of the day (snack bar)
Special of the day (sandwich)
Soup with crackers
French fries (small)
French fries (large)
Poutine (small)
Poutine (large)
Club sandwich
Pizza slice
Hot dog or pogo
Hamburger
Cheeseburger
Hamburger steak
Hot chicken
Grill cheese sandwich
Chicken Fingers & Fries
Chicken breast on Kaiser
Green salad order
SANDWICHES
Pre-wrapped sandwiches
Egg salad sandwich
Tuna/salmon/seafood/chicken salad
sandwich
Sliced meat (roast beef, turkey)
Black forest (ham, salami, pastrami)
Veggie sandwich
BEVERAGES
Coffee small
Coffee medium
Coffee large
Chocolate milk                             250 ml
Chocolate milk                             500 ml
Milk 2 %                                   250 ml
Milk 2 %                                   500 ml
Bottled water

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Bottled water
Sport drinks Powerade
Soft drink Bottle
Soft drink fountain
Tomato juice or V-8


DESSERTS
Pastries
Donuts
Chocolate filled croissant
Danish
Pie
Pudding/Jello
Fruit salad
Turnover
Muffin
Cake
Gourmet cookies
Yogourt




Please use another sheet if you need more space.




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Attachment 4: Ottawa MPP cafeteria layout




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Attachment 5: List of Items Proposed for Vending Machines all taxes included

Items                              Portion            Prices taxes included
Chips
Chocolate bars
Biscuits
Soft drinks
Sport drinks
Water
Gum
Cake
Soup & crackers




Please use another sheet if you need more space.




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Attachment 6 – Letter of offer
 To: MANAGER, SOURCING MANAGEMENT
 CANADA POST CORPORATION
 555 MCARTHUR, SUITE 1544
 ST-LAURENT, QC H4T 1T4

 PROPOSAL - OTTAWA MPP FOOD SERVICES AGREEMENT RFP No. 5409SL

 We are submitting a Proposal in response to the referenced RFP, and hereby offer to provide the
 goods and/or services as indicated in the RFP in consideration of payment by Canada Post Cor-
 poration or its employees.

 We have carefully examined the RFP documents and have a clear understanding of the require-
 ments of the RFP and the RFP Process. By submitting the Proposal, we acknowledge that we
 have read and understood and will comply with articles of section 1.4 “Proposal Preparation and
 Submission Requirements” of this RFP and we comply with all articles of section 4.0 “Manda-
 tory Requirements” of this RFP and have submitted all substantiating information as requested.

 We understand that our submitted Proposal may be accepted by Canada Post Corporation in
 whole or in part, within the Validity Period, and is irrevocable during that period.

 In the event Canada Post selects our proposal, in whole or in part, we agree to finalize and exe-
 cute the Agreement in accordance with the RFP. We hereby consent to Canada Post performing
 checks with the references listed in the proposal.

 We acknowledge and understand that the Corporation may disqualify the Proposal of any Bidder
 where the Bidder fails to provide information or makes misrepresentations regarding any of the
 information included in the Letter of Offer. Further, we acknowledge and understand that the
 Corporation will have the right to rescind any contract resulting from this RFP with the Selected
 Bidder in the event that the Corporation, in its sole discretion, determines that the Selected Bid-
 der has failed to provide information or made misrepresentations regarding any of the informa-
 tion in the Letter of Offer, in addition to or in lieu of any other remedies that the Corporation has
 in law or in equity.

 SIGNED (I have authority to bind the Bidder)

 Company Name


 Print Name and Title


 Signature of Bidder


 Date


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Attachment 7: List of Vending Machines



                        Description of vending machines

                   1    Snacks

                   2    Beverages (Coca Cola)

                   3    Beverages (Pepsi Cola)

                   4    Coffee

                   5    Refrigerated items
                   6

                   7

                   8

                   9

                   10




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Attachment 8: List of Equipment EXCLUDING Vending Machines Provided
by the Supplier

                   Description                 Installation    Total cost of
                                                  date          investment
                                                                 including
                                                              installation ($)




Total

Please use another sheet if you need more space.




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Attachment 9: Contractor Staffing Schedule
Enter the number of employees per work station per shift


                             Monday    Tuesday     Wednesday Thursday   Friday
Managers
                   Shift 1
Supervisors
                   Shift 2
                   Shift 3
Chefs
                   Shift 1

                   Shift 2
                   Shift 3
Cooks
                   Shift 1

                   Shift 2
                   Shift 3
Cashiers
                   Shift 1

                   Shift 2
                   Shift 3
Employees
                   Shift 1

                   Shift 2
                   Shift 3
                   Shift 1

                   Shift 2
                   Shift 3

Use the decimal when the work station is part time

Shift definition:              Shift 1 = 00H01 to 8H00
                               Shift 2 = 8H00 to 16H00
                               Shift 3 = 16H00 to 24H00




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Attachment 10: Cafeteria Hours of service schedule

Enter proposed hours of service per day


                   Day          From                     To   Total hours
                                                               per day
        Monday

        Tuesday

        Wednesday

        Thursday

        Friday




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DOCUMENT INFO
Description: Rfp Canada document sample