February 26, 2002

Mr. Ken Burnett Senior Consultant,

Consulting Services

HEABC

Dear Mr. Burnett:

This letter will confirm our mutual understanding, as discussed in negotiations, that the Extended Health Care Plan is a "claimable" plan and not a "payable" plan.

Additionally, PAR-BC agrees to withdraw the policy grievance of November 19, 1998 respecting Article 16.04.

The above was agreed to by PAR-BC in exchange for the Hospitals' agreement to eliminate the Pharmacare tie-in, implement an Extended Health direct pay card similar to BlueNet, and implement a "Medical Referral Transportation Benefit" during the term of the 2001-2004 PAR Collective Agreement.

Yours truly,

(original signed by Zoe Towle)

Zoe Towle Administrator 

PAR-BC