MANAGER HANDBOOK

IDAHO

(Manager keeps)

August2012

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Our History - Applebee’s Neighborhood Grill & Bar

The first Applebee’s opened in 1980 in Atlanta, Georgia as T.J. Applebee’s Edibles & Elixirs, a neighborhood bar and restaurant. “I had five partners, mortgaged my house and borrowed $50,000 to open the first restaurant”, said Bill Palmer, the founder of the Applebee’s concept, who together with his investors watched

their dream become a reality.” “At first we had 17 tables and a long wait. We added another nine tables and an atrium and sales doubled. Then, it just kept evolving. I knew we had something when the aggressive growth began. It took us ten years to open the first 100 – now we open more than 100 each year”, said Palmer. Palmer sold the Applebee’s concept to W.R. Grace in 1983, but remained one of the company’s most active franchisees. Applebee’s International, Inc. was created in 1988 when Midwestern franchisees Abe Gustin and John Hamra purchased the 54-unit concept from W.R. Grace.

Applebee’s quickly made a name for itself in the restaurant industry thanks to the resolve of Gustin. He believed he could aggressively franchise a casual dining restaurant, a restaurant that offers table service and a full bar. At the time, only fast food franchising was predominant. Applebee’s pioneered casual dining’s use of smaller restaurant facilities and more recently created a prototype casual dining restaurant for use in smaller communities with populations of 25,000. Applebee’s also led the implementation of market penetration strategies in the casual dining segment, creating a presence in a specific area, and then filling in the market afterward.

Applebee’s localizes each restaurant to reflect the neighborhood in which it operates. Each restaurant’s décor reflects local hometown heroes ranging from local athletes and celebrities to firefighters and other notables. The menu offers a wide range of choices from appetizers and salads to steak, chicken and ribs.

In 2007 Applebee’s International was purchased by IHOP Corp and became Applebee’s Services Inc. This created thelargest full service restaurant company in the world. In 2008 Applebee’s, along with IHOP, became part of DineEquity Inc. Applebee’s Services Inc. is headquartered in Kansas City, MO and continues to develop, franchise and operate restaurants under the Applebee’s Neighborhood Grill & Bar brand, the largest casual dining concept in the world. Additional information on Applebee’s Services can be found at their website www.applebees.com.

The Apple American Group Team

Apple American Group LLC is a franchisee of Applebee’s Services Inc. Founded in 2001, Apple American Group LLC (AAG) has grown to 436 restaurants with over 25,000 teammates – and we’re poised to continue growing. We are the largest Applebee’s franchisee in the world. We currently own and operate restaurants in: California and Nevada, Washington, Indiana, Ohio, New Jersey and Delaware, Pennsylvania and West Virginia, Minnesota, Wisconsin,Massachusetts, Rhode Island, New York, New Hampshire, Vermont, Maine, Alabama, Colorado, Georgia, Idaho, New Mexico and Oregon.

On 7/23/10, DineEquity, Inc. announced that it had reached agreement with Apple American Group LLC for the sale of 63 company-operated Applebee's restaurants located in Minnesota and parts of Wisconsin. “We are pleased to have reached an agreement to sell our Minnesota and Wisconsin restaurants to our largest Applebee’s franchisee and one of our best operators, Apple American Group. Apple American is a valuable franchise partner who continues to support our menu, marketing and operations revitalization efforts currently underway and is committed to reinvesting in the brand through new restaurant development, acquisition and restaurant remodel programs,” said Julia A. Stewart, DineEquity’s chairman and CEO. In November 2011, Apple American Group acquired another 66 restaurants in New England. The most recent acquisition brought an additional 99 units including 6 states in which AAG had not yet done business. As growth continues, Apple American remains dedicated to making every location a truly neighborhood restaurant responsive to the needs of each guest, each employee, and each community. Visit our website at www.AppleAmerican.com.

Apple American Group LLC is built on a decentralized business model, which means that each geographic area is led by a Market President. Reporting to the Market President are Area Directors, who are multiple unit operators, responsible for the overall functions of the restaurants in their areas. Reporting to the Area Directors are the General Managers, who are the chief restaurant managers responsible for the overall running of their restaurant. Aiding in the management of the restaurant are Assistant Managers, who are responsible for running of their departments (Kitchen, Carside, Service, Bar) and who help with every-day management responsibilities. Rounding out the storeleadership are key employees, team leads, and neighborhood experts.

In addition, all markets are assisted by the Support Center, which is located in Cleveland, Ohio. Company Accounting, Human Resources, Information Technology, Marketing, Payroll, Purchasing, Real Estate, and Training departments are housed at the Support Center, with field representatives available in the markets..

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WELCOME!

We’re happy that you have joined Apple American Group (AAG), the premier franchise group in the Applebee’ssystem. Along with your training, this handbook was written to answer the usual employee questions you may have. Ifyou ever have any questions regarding anything to do with your employment – benefits, payroll, training – please speakwith your supervisor, for they know you are truly our most valuable asset. Thanks for joining our team and good luck withyour new job!

Greg Flynn Brad PettingerChairman & CEO Chief Operating Officer

EMPLOYMENT AT WILL

Your employment with AAG is an employment at will. Just as you may quit your employment with us at any time for any reason, AAG may terminate your employment at any time for any reason.

Our policies and procedures in this Handbook aren’t intended to be all inclusive, but rather to serve as a guideline. None of the policies, procedures or benefits contained in this handbook are intended to constitute a contract ofemployment. Only AAG officers have any authority to enter into any agreement extending the employment of anyemployee for any specific period of time, or to make any promise or agreement contrary to the rules and policies of AppleAmerican Group. Any such promise or agreement must be in writing signed by an AAG officer.

EQUAL EMPLOYMENT OPPORTUNITY - AMERICANS WITH DISABILITIES ACT

It is the policy of AAG not to discriminate on the basis of race, creed, color, national origin, sexual orientation, gender identity, religion, medical condition, marital status, genetics, sex, age, or disability. It is our policy and practice toensure equal opportunity in employment for all qualified individuals with disabilities in accordance with the Americans withDisabilities Act and similar state laws.

OPEN DOOR POLICY

In any relationship, when a disagreement occurs, keeping emotions bottled up inside only causes the problem to getbigger. At AAG we want to encourage open communication so we can solve the problem with the least amount of stressfor those involved. To do this, we have developed an open-door policy that encourages you to talk with your supervisor to get your concerns addressed quickly.

Option 1. Talk directly to your immediate supervisor. If you have a problem, first discuss it with yourimmediate supervisor as soon as possible after the problem arises.

Option 2. Talk to a higher level of management. If you are not able to resolve the issue with yourimmediate supervisor, or if you are not comfortable discussing the issue with your immediate supervisor, you shouldtake your concern to the next higher level of management up to the Market President to get the answers you need. Follow the chain of command as high as you need to go to resolve the problem.

Option 3. Talk with Human Resources. If you have tried the above steps and are not satisfied, or if youare not comfortable talking to your supervisors for any reason, you can contact your Human Resources Generalist toget the help you need. This number is found on your Open Door posting in your restaurant.

Option 4. Talk with Support Center. Contact the Support Center Human Resource Dept at 216.525.2775 orEmployee Hotline at 800.837.3667, ext. 1300,and ask for help.Your issues will be investigated and you will receive a prompt response.

Apple American Group (Apple American Group LLC and Apple American Group II LLC) includes the following subsidiaries and affiliates: Apple Delaware LLC, Apple Indiana I LLC, Apple Indiana II LLC, Apple Indiana III LLC, Apple New Jersey LLC, Apple NorCal LLC, WineCountry Apple LLC, Apple Ohio LLC, Apple Pennsylvania LLC, B.T. Woodlipp, Inc, Apple Washington LLC, AppleSoCal LLC, Apple Nevada LLC, Apple Minnesota LLC and Apple New England LLCandall subsidiaries or aff iliated entities and all successors and assigns of any of them.

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VALUES & BELIEFSGOLD CARD

OUR VISION

To be the premier franchise group in the Applebee’s system, having the best people to do “whatever it takes” to deliver great products and excellent service in a clean and welcoming environment to every guest, each and every time.

GUIDING PRINCIPLESWe will never compromise our integrity. Our standard for ethical behavior must always meet this test: We will becomfortable seeing our actions (and the motive for them) published in the newspaper.

WE BELIEVE• That creating and keeping customers is the only basis for job security and the foundation for Company growth• That employees are our most valuable asset, and they should be recognized for their contributions to the

Company’s growth• That performance is the only basis for reward• That measurement improves performance• That we should control the selection of people rather than control the people we select• That a positive attitude is the most important attribute of employees• That good employees openly express their opinions, concerns, and ideas and that successful managers listen • That success depends upon the commitment of each individual to our standards, to our goals, and to each other

in celebrating successesWE PLEDGE

To Our Customers:• We will express our appreciation for your patronage• We will treat you as though you are a guest in our home• We will take the initiative to understand your needs and desires• We will strive to exceed your expectations

To Our Fellow Employees:• We will reward you based on your individual and team performance• We will treat you fairly and with dignity and respect• We will encourage and assist each of you to reach your highest level of accomplishment• We will encourage your frank expression of opinions, concerns and ideas• You have a right to know the reasons underlying Company goals, standards and procedures• We will consistently measure your performance and provide accurate and timely feedback• We will provide a clean and safe workplace

To Our Suppliers:• We believe that you are our partners in better serving our customer, therefore:• We will honor our agreements• We will objectively measure supplier performance• We will treat your representatives with respect and value their time• We will honor and maintain confidences

To Our Communities:• We will maintain our properties, obey the law, assist those less fortunate and support those institutions that

enhance the quality of life in our community

To Our Shareholders:• We will earn continued use of shareholders’ capital by developing a management team that will generate superior

returns on capital placed at risk• We will communicate routinely and effectively with our shareholders• We will actively seek new opportunities for sound investment

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Apple American Group Gold Card Leaders Guide

This Leaders Guide is a tool to help communicate our Gold Card Vision, Mission and Values to all associates. It can be used at orientations, one on ones, reviews, MIT Weekly Feedback sessions or PowerShifts.

Our VisionTo be the premier franchise group in the Applebee’s system, having the best people to do “whatever it takes” to deliver great products and excellent service in a clean and welcoming environment to every Guest,each and every time.

• To be the premier franchise group in the Applebee’s systemo In 2006, AAG was recognized as one of the top five franchise operators in the Applebee’s system.

The metrics considered included AOA, GEM, sales, and development. This was a great accomplishment, especially as the law of large numbers would tend to push us toward the middle of the pack.

o In 2007, AAG was named Franchisee of the Year by ASI and also Franchise Operator of the Year by Nations Restaurant News. This was a direct result of all of our tremendous efforts and successes over the past nine

years.o In 2009, Keith Morrow, Market President of our PA/WV market was named Operator of the Year

by ASI.o In 2010, Dan Krebsbach, Market President of our WA & MN market was named Operator of the

Year by ASI.• Having the best people to do “whatever it takes” to deliver great products and excellent service

o We hire people based on their fit with our company and vision. We want all our associates to go above and beyond and show that they sincerely care that our Guests have an outstanding dining experience

o All our associates must support our Applebee’s Brand Promise – See You Tomorrow. We might heat up a bottle or food for a baby. Adjust one of our entrees to fit a person’s desired needs or wants. Celebrate a Guest’s birthday as if it were one of our family member’s or friend’s birthdays.

• In a clean and welcoming environmento Clean

We have a program called ZTS, which stands for Zero Tolerance Shortlist. The ZTS program ensures the cleanliness of our restaurants by highlighting all areas that a Guest would see; from the parking lot to the landscaping, into the dining room and the restrooms. This is a walk through inspection that is executed by our Area Director and management teams. For example, the parking lot must be free of debris. The sidewalks are free from cracks, gum and debris. The restrooms are clean and maintained.

When inviting friends into your home, you would set aside time prior to their arrival to clean and tidy up. We want our Guests to see this same attention to detail in all of our restaurants.

o Welcoming , Make a Great First and Last Impression When welcoming someone into your home, you greet them at the door with a smile and a

warm sincere greet. You offer to take their coat, guide them to the dinner table or a room in which to sit and talk before dinner. We want our restaurants to have this same welcoming environment.

This sincere approach to welcoming Guests is capped off with a genuine farewell and an invite for them to return tomorrow. It is a bit audacious to assume that they will want to return tomorrow, but if we take good enough care of them today, our goal is for them to return quickly.

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• To every Guest, each and every timeo We uphold and execute ten basic service steps at every table to ensure that every Guest is

treated equally.o We treat each Guest as an individual and avoid scripted behaviors whenever engaging them

either in person, on the phone or at their car.o We always treat every Guest as if they were being invited to our home for lunch or dinner.o We practice Renegade Service and strive to Show we Care about our Guests.

Guiding PrinciplesWe will never compromise our integrity. Our standard for ethical behavior must always meet this test: We will be comfortable seeing our actions (and the motive for them) published in the newspaper. We will never compromise our integrity

o We will always do the right thing even when nobody is watching. We will be comfortable seeing our actions and the motive for them published in the newspaper

o When unsure if you are doing the right thing, refer to this statement. If you wouldn’t want your behavior printed on the front page, then it is probably not the correct thing to do. Examples of unethical behavior that AAG does not condone. Extending the shelf life of a product. We would never use a product that was not labeled. If we do not know the expiration

date, we will always assume that it is expired.

We Believe That creating and keeping customers is the only basis for job security and the foundation for

Company growtho Every action should have the Guest in mind.o It is important for all associates to engage and to make the Guest feel valued.

Managers can accomplish this through frequent table visits. Meeting our Guests and making them feel valued is our daily goal.

Associates can engage the Guests by introducing themselves in the dining room, meeting a Guest’s need in the kitchen and by always striving to exceed the Guest’s expectations by showing just how much we care about their experience.

That employees are our most valuable asset, and they should be recognized for their contributions to the Company’s growth

o Our Only the Best program recognizes an outstanding associate each month and our Pin Program recognizes outstanding behavior with Good Job, Teamwork and WITS lapel pins.

WE PLEDGETo Our Customers:

We will express our appreciation for your patronageo Use the 5 foot rule; acknowledge any Guest within 5 feet of you. This can be a smile, a hello,

and an offer of assistance or a table visit.o Sincerely thank each Guest that comes into your restaurant and invite them to return

tomorrow. We will treat you as though you are a Guest in our home

o Recognize regulars and their Guests.o Lead them to the bathroom instead of just pointing.o Uphold our daily cleaning tasks to insure your restaurant is ready for each Guest.o Open the front doors at 10:45 am for early diners.

We will take the initiative to understand your needs and desireso Read your Guests and anticipate their needs.

If they have a child, offer crackers while the food is cooking or offer to put the child’s food in first.

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Offer a second beverage when their drink is 1/3 full and before the Guest has to ask. Write each order down and complete all special orders and modifiers to an order as

directed by the Guest.o Show you Know by walking the Guest through our menu choices and affirming their selection.

We will strive to exceed your expectationso Provide WOW service and See You Tomorrow behaviors.

Ask if they are celebrating a special occasion or if it is their first time at our restaurant. Take care of all their needs, quickly. Suggest items to enhance their dining experience, i.e. soup, salad, extras, desserts. Deliver and process the check promptly for Guests. Go out of your way to thank the Guest for their patronage.

To Our Fellow Employees: We will reward you based on your individual and team performance

o Set up contests to achieve daily goals.o Scheduling preferences are based on performance of the employee.o Celebrate successes in public at PowerShift.

We will treat you fairly and with dignity and respecto All employees are held to the same standards and accountability.o Favoritism must not be played among the associates.

We will encourage and assist each of you to reach your highest level of accomplishmento As Managers, part of our job is to develop your associates. During reviews, set goals with

each of them together and follow-up with the associate to make sure we are meeting their expectations.

o Provide consistent feedback by completing daily one on ones with associates.o Cross train individuals who want to learn new positions.

We will encourage your frank expression of opinions, concerns and ideaso At AAG we always have an open door policy. Associates must feel comfortable expressing

their concerns and know we are open to hearing their ideas. o We grow based on our innovation. If we shut out the possibility of new ways to improve our

process then we fall behind the competition. You have a right to know the reasons underlying Company goals, standards and procedures

o Share information from all of our success measurements including Guest satisfaction. If the associates know the common goal, then they can help achieve it.

We will consistently measure your performance and provide accurate and timely feedbacko Prepared and insightful reviews must be completed every six months or to your market’s

standard.o Complete daily one on ones to encourage or improve current performance.o Managers must coach constantly throughout their shift to keep our restaurants running at its

highest level.o Associates must first know and understand the goal to be held accountable for their

performance and results. We will provide a clean and safe workplace

o Everyone must wear slip resistant shoes.o Safety topics should be talked about on a daily basis.

Cutting gloves used. Wet floor signs in place.

Every associate of Apple American Group must understand our standards, policies and procedures to keep Applebee’s successful. Always consider the Gold Card in your actions and decision making. Knowing, understanding and living the Gold Card is what will keep us rising above our competition and be the premiere franchise in the Applebee’s system.

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EMPLOYMENT POLICIESRIGHT TO REVISE: This employee handbook contains the employment policies and practices of AAG in effect at the time of publication. All previously issued handbooks and any inconsistent policy statements or memoranda are superseded.

AAG reserves the right to revise, modify, delete, or add to any and all policies, procedures, work rules, or benefits stated in this handbook or in any other document, except for the policy of at-will employment. However, any such changes must be in writing and must be signed by an officer of AAG.

Any written changes to this handbook will be distributed to all employees so that employees will be aware of the new policies or procedures. No oral statements or representations can in any way alter the provisions of this handbook.

Nothing in this employee handbook or in any other personnel document, including benefit plan descriptions, creates or is intended to create a promise or representation of continued employment for any employee.

MANAGER BENEFITSMEALS: The Market Presidents may modify or discontinue meal benefits at their discretion.Meals When Working – Managers may eat any item on the menu during their working hours. It is to be rung up in the computer and marked on the Administrative line. Shift meals are not to be taken “To Go”.

VACATION: You are eligible for vacation at your anniversary date each year. New managers may use one week of vacation beginning on their seventh month of eligible employment; to be taken before their first anniversary of eligible employment.

You earn between 40 and 160 hours of vacation depending on the number of years you have worked:

• 1st – 4th Anniversary = 10 days• 5th -14th Anniversary = 15 days

• 15th Anniversary + = 20 days

Vacation policy limitations are as follows:

• Vacation cannot be carried forward; it must be used during the anniversary year.• Unused vacation will not be paid out if a manager fails to provide a written 2-week notice of intent to resign and

work all scheduled shifts during that notice. Upon separation with the company, vacation payouts are only available to employees who are eligible for re-hire.

HOLIDAYS AND TIME OFF: We have made a commitment to our guests to provide an “unparalleled guest experience” and that requires being staffed properly during peak business periods. Because of the volume of business we see during the December holidays, we will not be able to approve any vacation time for restaurant managers from December 10th, through January 8th. The Thanksgiving and Christmas weeks will be four day work weeks. As a reminder:

• All vacations must be approved by your Area Director before submitting them to the Regional Administrative Assistant. The earlier you submit your request, the better the chance that it will be approved. Vacation Request forms may be found on the intranet.

• Please make certain that your request has been approved before making vacation plans.• At no time may a manager take more than 10 days off in a row at any time.

BEREAVEMENT TIME: Managers are eligible for up to 3 days of unpaid bereavement leave to attend the funeral ofa family member. A manager needing bereavement leave should notify his or her supervisor immediately.

JURY /WITNESS DUTY: AAG considers jury duty a civic responsibility and will make arrangements for an employee to beabsent from work to serve on a jury or as a witness in a court case. Managers requiring such leave must inform theirsupervisor, and provide a copy of the summons, juror service certificate, or other proof of service. Managers on jury/witness leave must keep their AD/GM up to date on their jury/witness duty schedule. Jury/witness duty may be paid or unpaid for management employees depending on the length of jury/witness service.

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HOLIDAYS: Thanksgiving Day and Christmas Day are paid holidays for management. This does not pertain to Managers in Training (MITs).

HEALTH INSURANCE: We offer a contributory group health plan on a pre-tax payroll deduction basis, which isavailable to all salaried managers. You have the option of enrolling in one of three tiers of coverage, which includemedical, major medical, dental and prescription coverage, along with life insurance equal to your annual salary. Toassist with your enrollment decision, a Benefits Summary was provided to you prior to Orientation, and may also befound on the AAG intranet. Should you choose to enroll, your coverage will become effective on the first day of themonth after 30 days of employment. Additional, employee-paid vision coverage and additional life insurance are alsoavailable.

If you choose not to enroll when you are first eligible, you must wait for the next open enrollment period inJune. Exclusions to this requirement include: birth or adoption of a child, change in employment status, marriage ordivorce, death, spouse loss of coverage, or mandatory enrollment by court order. Changes in coverage must be enactedwithin 31 days of the event.

Once you enroll in the plan, your health care premiums will be deducted from your paycheck biweekly. All premiums will be paid on a pre-tax basis. It is our intent to provide the best coverage possible at a reasonable price, but cost and plans are subject to change from time to time.

401K RETIREMENT PLAN: 401k lets you save for your retirement through contributions of pre-tax dollars. Youare eligible to enroll in the company-sponsored 401k immediately upon hire. AAG offers a matching contributionsubject to the plan. Currently, we will match $.25 on the dollar to a maximum of 8% of your total annualcompensation. More information and a web link to enroll online may be found on the Apple American Group intranet.

You are always 100% vested in your personal contributions to the plan. You can also roll over any contributions from aprevious employer plan, which will be automatically 100% vested. The vesting schedule for company contributions tothe plan is as follows:

Years of Service

1 2 3 4 5

% Vested 0% 25% 50% 75% 100%

FAMILY AND MEDICAL LEAVE ACT - LEAVE OF ABSENCE: Pursuant to the federal Family & Medical Leave Act, AAG provides eligible employees with unpaid leave. There are two types of leave available: the basic 12-weekleave entitlement (Basic FMLA Leave), as well as the military family leave entitlements (Military Family Leave) describedin this policy.

ELIGIBILITY: Employees are eligible for FMLA leave if they:

1. Have worked for AAG for at least 12 months;2. Have worked at least 1,250 hours for AAG during the 12 calendar months immediately preceding the date of therequested leave; andThe 12 months of service need not be consecutive. Employment before a break in service of 7 years or more will notbe counted, unless the break in service was caused by the employee’s active duty with the National Guard or reserve, or there was a written agreement that the employer intended to rehire the employee after the break in service.Employees with any questions about their eligibility for FMLA leave should contact their Human ResourcesGeneralist or call the Employee Hotline at 800.837.3667, ext. 1300 for more information.

BASIC FMLA LEAVE: Employees who meet the eligibility requirements described above are eligible to take up to12 weeks of unpaid leave during any 12-month period for one of the following reasons:

1. To care for the employee’s son or daughter during the first 12 months following birth;2. To care for a child during the first 12 months following placement with the employee for adoption or foster care;3. To care for a spouse, son, daughter, or parent (“covered relation”) with a serious health condition;4. For incapacity due to the employee’s pregnancy, prenatal medical or child birth; or5. Because of the employee’s own serious health condition that renders the employee unable to perform anessential function of his or her position.

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MARRIED COUPLES: A husband and wife who are eligible for FMLA leave and who are both employed by AAGmay take a combined total of 12 weeks’ leave during any 12-month period for reasons 1 and 2, or to care for thesame individual pursuant to reason 3.

MILITARY FAMILY LEAVE: There are two types of Military Family Leave available.

1. Qualifying exigency leave. Employees meeting the eligibility requirements described above may be entitled to use up to 12 weeks of their Basic FMLA Leave entitlement to address certain qualifying exigencies. Leave may be used if the employee’s spouse, son, or daughter, is on active duty or called to active duty status in the National Guard or Reserves in support of a contingency operation.

Qualifying exigencies may include:• Short notice deployment (up to 7 days of leave)• Attending certain military events• Arranging for alternative childcare• Addressing certain financial and legal arrangements• Periods of rest and recuperation for the service member (up to 5 days of leave)• Attending certain counseling sessions• Attending post-deployment activities (available for up to 90 days after the termination of the covered service

member’s active duty status)• Other activities arising out of the service member’s active duty or call to active duty and agreed upon by AAG andtheemployee

2. Leave to care for a covered service member. There is also a special leave entitlement that permits employees whomeet the eligibility requirements for FMLA leave to take up to 26 weeks of leave to care for a covered service memberduring a single 12-month period. A covered service member is a current member of the Armed Forces, including amember of the National Guard or Reserves, who has been rendered medically unfit to perform his or her duties due toa serious injury or illness incurred in the line of duty while on active duty that may render the service member medically unfit to perform his or her duties for which the service member is undergoing medical treatment, recuperation,or therapy; or is in outpatient status; or is on the temporary disability retired list.

When both husband and wife work for AAG, the aggregate amount of leave that can be taken by the husband and wifeto care for a covered service member is 26 weeks in a single 12-month period.

USE OF LEAVE: An employee does not need to use this leave entitlement in one block. Leave can be takenintermittently or on a reduced leave schedule when medically necessary. Employees must make reasonable effortsto schedule leave for planned medical treatment so as not to unduly disrupt the employer’s operations. Military FamilyLeave due to qualifying exigencies may also be taken on an intermittent basis. Leave may not be taken on anintermittent basis when used to care for the employee’s own child during the first year following birth, or to care for achild placed with the employee for foster care or adoption, unless both the employer and employee agree to suchintermittent leave.

PAY, BENEFITS, AND PROTECTIONS DURING FMLA LEAVE

LEAVE IS UNPAID: Family medical leave is unpaid leave (although employees may be eligible for short- or long-term disability payments and/or workers’ compensation benefits under those insurance plans) if leave is taken becauseof an employee’s own serious health condition.

SUBSTITUTION OF PAID TIME OFF FOR UNPAID LEAVE: Employees are required to use any earned, butunused vacation during their leave. The substitution of paid leave time for unpaid leave time does not extend the 12-week leave period.

MEDICAL AND OTHER BENEFITS: During an approved family medical leave, AAG will maintain the employee’shealth benefits (if any) as if the employee continued to be actively employed. If an employee contributes to his or herown health benefits before the leave, that employee will still be responsible for the payment of that contribution while onleave.

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RETURN TO JOB AT END OF FMLA LEAVE: Upon return from FMLA leave, eligible employees must be restoredto their original or equivalent positions with equivalent pay, benefits, and other employment terms.

EMPLOYEE RESPONSIBILITIES WHEN REQUESTING FMLA LEAVE: If the need to use FMLA leave isforeseeable, the employee must give AAG at least 30 days’ prior notice of the need to take leave. When 30 days’ noticeis not possible, the employee must give notice as soon as practicable (within 1 or 2 business days of learning of the needfor leave except in extraordinary circumstances). Failure to provide such notice may be grounds for delaying the start of the FMLA leave.

REQUESTS FOR FMLA LEAVE SHOULD BE SUBMITTED TO YOUR HUMAN RESOURCES DEPARTMENT: Ifthe need for leave is not foreseeable, employees are required to provide as much notice as soon as practicable underthe facts of the particular case. An employee requiring unforeseeable leave must, absent extraordinary circumstances,call his or her direct supervisor and provide sufficient information regarding the employee’s need for leave to support arequest for FMLA leave. It generally should be practicable for the employee to provide notice of leave within onebusiness day.

When submitting a request for leave, the employee must provide sufficient information for AAG to determine if the leave might qualify as FMLA leave, and also provide information on the anticipated date when the leave would start as wellas the duration of the leave. Calling in “sick” is not sufficient. Sufficient information may include that the employee isunable to perform job functions; that a family member is unable to perform daily activities; that the employee or family member needs hospitalization or continuing treatment by a healthcare provider; or the circumstances supporting theneed for military family leave. Employees also must inform AAG if the requested leave is for a reason for which FMLAleave was previously taken or certified. Employees also will be required to provide a certification and periodicrecertification supporting the need for leave.

MEDICAL CERTIFICATION: If the employee is requesting leave because of the employee’s own or a coveredrelation’s serious health condition, the employee and the relevant healthcare provider must supply appropriate medicalcertification. Employees may obtain Medical Certification forms from your Human Resources Generalist. When theemployee requests leave, AAG will notify the employee of the requirement for medical certification and when it is due(no more than 15 days after you request leave). If the employee provides at least 30 days’ notice of medical leave, he orshe should also provide the medical certification before leave begins.

Failure to provide requested medical certification in a timely manner may result in denial of leave until it is provided.AAG, at its expense, may require an examination by a second healthcare provider designated by AAG, if it reasonablydoubts the medical certification initially provided. If the second healthcare provider’s opinion conflicts with the originalmedical certification, AAG, at its expense, may require a third, mutually agreeable, healthcare provider to conduct anexamination and provide a final and binding opinion.

AAG may require subsequent medical recertification. Failure to provide requested certification within 15 days, except inextraordinary circumstances, may result in the delay of further leave until it is provided. Employees may also berequired to provide a fitness-for-duty certification upon return to work, or during intermittent leave, as required.

INTERMITTENT AND REDUCED-SCHEDULE LEAVE: Leave because of a serious health condition, or either typeof family military leave may be taken intermittently (in separate blocks of time due to a single health condition) oron a reduced-schedule leave (reducing the usual number of hours worked per workweek or workday) if medicallynecessary. In addition, while an employee is on an intermittent or reduced-schedule leave, AAG may temporarilytransfer the employee to an available alternative position that better accommodates the recurring leave and that hasequivalent pay and benefits.

MILITARY-RELATED LEAVE. AAG grants leaves for uniformed service in compliance with all applicable federal and state laws. With exceptions and limitations, employees are entitled to reemployment and certain other benefits with AAG during military service and upon completion of military service in accordance with applicable federal and state law. Any employee who needs time off for uniformed service is to immediately notify his or her Human Resources Generalist or call the Employee Hotline (800-837-3667, ext. 1300) for details regarding the leave. If an employee is unable to provide notice prior to leaving for uniformed service, then a family member should notify his or her supervisor as soon as possible.

Note that the foregoing are summaries only and other restrictions and qualifications may apply. For specific and detailed information about these leaves of absence, contact your Human Resources Generalist or call the Employee Hotline at 800.837.3667, ext. 1300.

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PAY POLICIESATTENDANCE AND PUNCTUALITY is a must for management personnel. In the rare instances when a manager cannot avoid being late for work or is unable to work as scheduled, they should notify their supervisor as soon as possible in advance of the anticipated tardiness or absence. Poor attendance and excessive tardiness are disruptive and may lead to disciplinary action, up to and including termination of employment. Any changes in your pre-approved schedule must be approved by your Area Director.

PAYDAYS: Our pay week runs from Wednesdays through Tuesdays. Managers will be paid bi-weekly on the Tuesday following the end of the pay week, which is in accordance with the state’s minimum one per month requirement. Employees may not cash paychecks at work. Direct Deposit is not mandatory, but all employees areeligible for direct deposit. Manage rs are highly encouraged to sign up for direct deposit because their paychecks will otherwise be sent to their homes by regular mail. Lost checks should be immediately reported to asupervisor. Please check your paycheck carefully. If you believe an error has been made, it is your responsibility to call itto the attention of the Payroll department.

PAYROLL DEDUCTIONS: The following list represents deductions you may notice on your paycheck /direct deposit stub:• ITEMS DESIGNATED BY EMPLOYEE• TAXES**

o Federal Income Taxo State Income Taxo City/Local Income Taxo Social Security (FICA) Taxo Federal Medicare Tax

**State and local taxes vary depending on your local laws.

GARNISHMENTS: AAG will comply with all court orders to withhold money from employee paychecks.Garnishments are processed by the Support Center Payroll department. Any questions about your garnishment should be directed to that department at 800.837.3667, ext. 1300.

TIME KEEPING: All sales terminals have a time keeping feature that acts as a time clock. Employees are assigned a specific employee number, and are required to clock in and clock out for each shift and unpaid break. If an employee forgets to clock in or out, and a manager is required to make a change in the system, the employee will need to verify the change with the manager by signing a form stating it has been reviewed with the manager. Repeatedly forgetting to clock in or out will lead to performance counseling, up to and including termination. No non-management employee is allowed to clock in or out for an employee; and managers can only clock employees in/out with the employee’s signature verifying the action. Employees cannot clock in prior to a shift or after the shift is completed without manager approval. Time clock records are required by state and federal law – if we discover an employee has manipulated a clock record, that employee will receive performance counseling up to and including termination.

TIPS: Neither AAG nor its managers, directors or executives are permitted to share or keep any part of any gratuity left for employees. “Tip pooling,” whereby employees pool a portion of their tips and then share those tips with other employees, is strictly voluntary.

GENERAL INFORMATIONDISPUTE RESOLUTION PROGRAM: Included in this handbook is our complete Dispute Resolution Program bookletthat explains our formal Dispute Resolution Program in detail, and provides clear description of what is coveredunder the program.

EMPLOYEE PROPERTY: An employee’s personal property, including but not limited to packages, purses, andbackpacks, may be inspected upon reasonable suspicion of unauthorized possession of AAG property orillegal/improper substances.

NAMES AND ADDRESSES: AAG is required by law to keep current all employees’ names and addresses.Employees are responsible for notifying AAG in the event of a name or address change. Employees should also notifyAAG if there is a change in phone number, marital status, number of dependents or emergency contact.

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WORKPLACE PRIVACY: Employees may not use any cameras, audio or video recording devices in or around therestaurant.

PERFORMANCE FEEDBACK: During your init ial t raining, we will review and document your performance weekly.We will provide you with a copy of these reviews for discussion purposes. You will then receive monthly one-on-ones from your General Manager. Your salary review shall be performed annually, around the first of January. Performance reviewswill be performed semi-annually.

PROMOTIONS: Apple American is always looking for career-minded internal candidates. If you are interested in another position, notify your manager. Promotions are determined by merit, not length of time with AAG

SCHEDULING AND POSITION: AAG reserves the right to schedule employees in any position for which they are trained at any time. Neither tenure nor past practice guarantees any employee the right to a particular schedule, number of hours or position.

EMPLOYEE HOTLINE: Do you need help with a problem? If you have a work-related problem that seems insurmountable, and you’ve gone through channels and are still not satisfied, try our Hotline to get help with: problems relating to your employment; payroll/benefits questions or problems. Call 800.837.3667, ext. 1300.

AAG PROPERTYBULLETIN BOARDS: A bulletin board is posted to serve as a means of communication between AAG and restaurants, between employees on different shifts, and between management and employees. It is to be used for official business only, and all postings must have management approval. Please check the board when arriving for work and when leaving the premises at the end of a shift for pertinent information.

OFFICE: The Manager’s Office is off-limits to Hourly Associates unless accompanied by a manager. The manager should never stand in front of the office door, blocking the employee’s path of exit.

SOLICITATION AND DISTRIBUTION OF LITERATURE: In order to ensure efficient operation of AAG’s business and to prevent disruption to employees, we have established control of solicitations and distribution of literature at theSupport Center. AAG has enacted rules applicable to all employees governing solicitation, distribution of writtenmaterial, and entry onto the premises and work areas. All employees are expected to comply strictly with these rules.Any employee who is in doubt concerning the application of these rules should consult with his or her manager.

• No employee shall solicit or promote support for any cause or organization during his or her working time orduring the working time of the employee or employees at whom suchactivity is directed.

• No employee shall distribute or circulate any written or printed material in work areas at any time, or during hisor her working time or during the working time of the employee or employees at whom such activity is directed.

Under no circumstances will non-employees be permitted to solicit or to distribute written material for any purpose onAAG property.

TELEPHONES: Restaurant telephones are for business use and to provide extra service for our guests. They cannot be used for employee personal business except in an emergency situation.

EMPLOYEE CONDUCT(INCLUDES MANAGEMENT)

ALCOHOL AWARENESS: Any employee who does not “card” guests (verify guests who appear to be 30 or under by asking for proper ID) ordering alcoholic beverages will be terminated. Any employee who serves alcoholic beverages to someone who is clearly intoxicated will be terminated. We will do whatever it takes to assure that a guest drinks responsibly and gets to their destination safely. Restaurant managers are also responsible for communicatingprocedures for dealing with alcohol issues and ensuring the policy is enforced.

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CASH SHORTAGES: AAG will use employee counseling, up to and including termination of employment for any cash shortage. If there is a cash shortage due to gross negligence, dishonesty or a willful act on the part of an employee, AAG reserves the right to pursue legal means of repayment from that employee.

CELL PHONES AND OTHER DEVICES: Employees may not use or carry a cell phone while on the clock. The same is true for a pager, Blackberry, iPhone or any other communications device. If there is a specific concern or emergency, an employee must ask a manager for an exception for a specific shift. Managers may keep cell phones in the office, but they should not be used in the restaurant except in case of emergency. An example might be a loss of power or a computer crash. This insures that a good example is set for our hourly associates and that we do not appear to have a “double standard”.

CONDUCTING PERSONAL BUSINESS: Employees are to conduct only AAG business while at work. Employees may not conduct personal business or business for another employer during their scheduled working hours.

DISCIPLINARY ACTION: Violation of AAG policies and rules (including engaging in conduct listed herein as Prohibited Conduct) may warrant disciplinary action. AAG may, in its sole discretion, utilize whatever form of discipline is deemed appropriate under the circumstances, up to, and including, termination of employment. AAG’s policy of discipline in no way limits or alters the at-will employment relationship.

DRUG AND ALCOHOL ABUSE. The following rules and standards of conduct apply to all employees either on AAG property or during the workday (including meal periods). Behavior that violates AAG policy includes:• Possession or use of an illegal or controlled substance;• Being under the influence of an illegal or controlled substance while on the job; and• Distribution, sale, or purchase of an illegal or controlled substance while on the job

Violation of these rules and standards of conduct will not be tolerated. AAG also may bring the matter to the attention of appropriate law enforcement authorities. In order to enforce this policy, AAG reserves the right to conduct searches of AAG property or employees and/or their personal property, and to implement other measures necessary to deter and detect abuse of this policy. Any employee who is using prescription or over-the-counter drugs that may impair the employee’s ability to safely perform the job, or affect the safety or well-being of others, must notify a manager of such use immediately before starting or resuming work.

DRINKING AT APPLEBEE’S OFF THE CLOCK: Managers of legal drinking age, will be permitted to consume alcoholic beverages in an AAG Applebee’s establishment other than their home Applebee’s restaurant with a maximum of 2 (two) alcoholic beverages IF the following requirements are met:

• Must pay full price for alcoholic beverages• Must refrain from any behavior/language that is less than professional or not in the best interest of guests,

co-workers, or the employer.• May not consume any alcoholic beverages within 4 (four) hours prior to the start of their shift or prior to visiting

another Applebee’s restaurant to work in any capacity.• May NOT enter the BOH or the immediate bar area (excluding High-top tables) while consuming alcohol.• Must be off-duty and not in any Applebee’s uniform.

All managers and supervisors have the responsibility to enforce this policy and to report any violation or potential violation to their immediate supervisor and/or the Human Resources representative immediately. Failure either to enforce or adhere to this policy may result in immediate disciplinary action up to and including termination.

Q&A(Restaurant Based Associates)

1. How long do I have to be off-duty in order to have a drink at Applebee’s with my family? You may consume alcohol at another Applebee’s other than your home-based restaurant with your family after your shift ends as long as you are out of uniform. You may NOT consume alcohol in your home-based restaurant, in which you work, at any time.

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2. What does on-duty mean? On-duty is anytime you are working at an Applebee’s restaurant or are attending an Applebee’s sponsored function (e.g. training, off-site meetings).

3. What does off-duty mean? You are considered off-duty anytime you are clocked out (including lunch and dinner breaks), out of uniform and not performing any work duties for Applebee’s including training and off-site meetings.

4. Am I allowed to drink during a Holiday Party or other company sponsored events (football and baseball games, vendor outings)? You are allowed to drink responsibly as long as your Director of Operations (or higher level) has approved the event and you are of legal drinking age and adhere to all of the state and local liquor regulations.

5. If I attend a Holiday Party or other company sponsored event do I have to be off-duty for a minimum of 2 hours? No, you do not have to be off-duty for a minimum of 2 hours to attend a company-sponsored event that is approved by a Director of Operations or above. However, if you have to return to work after the event you may not drink alcoholic beverages for a minimum of 4 hours prior to the starting time of your shift or come to work intoxicated.

6. Am I allowed to sit in the bar area and have a maximum of two drinks at another Applebee’s establishment other than my home-based restaurant? As long as you have been off-duty and out of uniform, you are allowed to consume a maximum of 2 drinks at either the high-tops in the bar area or anywhere in the dining room (other than your home-based restaurant). You are NOT allowed to sit at the bar.

7. Who is responsible for monitoring the two drink maximum and two-hour rule? Whoever serves you is responsible for adhering to the policy as well as yourself. The management team in the restaurant is ultimately responsible for monitoring this policy.

8. What are the consequences if the policy is not followed? You will receive progressive discipline up to and including termination.

WORK CLOTHES: AAG, as an Applebee’s franchise, requires its managers employees to wear certain styles of shirtsand pants and possibly other items that could be a part of your basic street clothing and that you can buy at a variety of stores. Clean nails, hands, teeth, and the use of an effective deodorant are a must in the restaurant business. Your clothing must be clean and wrinkle-free. Your shoes must be Non-slip soled shoes - Additional requirements include:

Front of House Positions• Hair must be clean and pulled back away from face.• Hair must be restrained if shoulder length or longer, and always away from items being served.• Make-up should be simple and applied lightly.• GM or AD will approve the length of mustaches, sideburns and beards. While growing a beard, daily shaving & shaping of the beard is required.• Manicures must be well-maintained – no chipping. Clear polish only. White French-tip also allowed.• Tattoos and body piercing (other than ears) must be concealed from guests’ view.• Hair color and style should be conservative.• Jewelry should be kept to a minimum; management reserves the right to approve appropriateness.• Perfume, colognes, and aftershave must be fresh and lightly scented. No heavy scents are permitted.• Clothing must be clean (not stained); not worn, free of fraying or holes and wrinkle-free. Socks are required.• T-shirts worn under a FOH shirt must be a V-neck and not visible to guests.• Intentional body alteration or modification for the purpose of achieving a visible, physical effect that disfigures,

deforms or similarly detracts from a professional image is prohibited. Examples include, but are not limited to,visible tattoos, brands, body piercing (other than traditional ear piercing), tongue piercing or splitting, tooth filing,earlobe expansion, and acquiring visible, disfiguring skin implants.

• Methods to conceal an unacceptable piercing, such as using a bandage, are not permitted. For tattoo coverage, adiscrete bandage or opaque makeup will be permitted if they completely conceal the tattoo. Spacers or retainersare not permitted in any visible body piercing while working. Jewelry worn in non-visible piercings that may pose asafety risk because of working clothes design and/or job responsibilities will not be permitted.

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FEMININE MANAGER DRESS CODE GUIDELINES

• Shirts must be long sleeved, buttoned down and with a collar. Must be clean & wrinkle-free. • Pants must be full-length slacks, clean & wrinkle-free. No khakis. • Shoes should be black, non-skid, clean, polished and closed toe. • No all-black outfits. • Pregnant Managers should review modified guidelines with their Area Director

MASCULINE MANAGER DRESS CODE GUIDELINES

• Shirts must be long sleeved, buttoned down and with a collar. Must be clean & wrinkle-free. • Pants must be full-length slacks, clean & pressed, with a solid-colored belt. No khakis. • Shoes should be black, non-skid, clean and closed toe. • No black on black on black outfits.

Any manager who desires an exception to the foregoing because of gender identity issues should see the GM or AD. AAG will comply with all federal, state and local laws requiring the company to refrain from discrimination on the grounds of gender identity. FRATERNIZATION POLICY: Managers/ Supervisors who find themselves in “employee social situations” have a responsibility to conduct themselves in a professional and responsible manner. Managers/ Supervisors are prohibited from dating any employee who works in their unit(s), being intoxicated in front of hourly employees, attending house parties of hourly employees, living with an hourly employee, and inviting hourly employees over for house parties. If you are ever in doubt concerning an event which may constitute fraternization: A) Do not participate or B) Call your Area Director for advice and/or approval. Please remember that any time you are with an hourly employee, you are representing Apple American Group and are responsible for maintaining our Gold Card values and principles. If you think you may have inadvertently violated the policy, you MUST contact your Area Director IMMEDIATELY to minimize the impact on the company, your restaurant, and your career. HIRING RELATIVES: Managers are prohibited from hiring their relatives. GUEST TREATMENT: It is against Apple American Group policy for an associate of AAG to make negative or derogatory remarks about a guest to anyone, including fellow employees. Speaking to a guest about the amount of tip is strictly prohibited. Employees may not pressure hosts for a specific type of guest. Closing early or dissuading guests from service near closing time (such as implementing “last call”) is prohibited. LOST AND FOUND: Any item found in the restaurant or on the property by an employee is to be turned over to the management on duty immediately. MANAGEMENT EXPECTATIONS: It is AAG’s expectation that Assistant Managers and General Managers will regularly and routinely spend their time engaged in management work. Management work is generally defined as work that is different than the kind of work regularly engaged in by hourly subordinates. Examples of management work include work such as interviewing, selecting, and training of employees; setting and adjusting employee rates of pay and hours of work; directing the work of employees; maintaining production or sales records for use in supervision or control; appraising employees' productivity and efficiency for the purpose of recommending promotions or other changes in status; handling employee complaints and grievances; disciplining employees; planning the work; determining the techniques to be used; apportioning the work among the employees; determining the type of materials, supplies, machinery, equipment or tools to be used or merchandise to be bought, stocked and sold; controlling the flow and distribution of materials or merchandise and supplies; providing for the safety and security of the employees or the property; planning and controlling the budget; and monitoring, or implementing legal compliance measures. Management work also includes any work directly and closely related to the above. We believe this expectation is reasonable and realistic. In the event you believe that you ever find that you do not meet this expectation in any particular workweek then it is very important that you immediately notify your Human Resources Generalist so we can insure that we are in full compliance with all of our obligations under the wage and hour laws.

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SMOKING: Employee smoking is restricted to specific times and areas that are determined by management. The Smoking Policy for your restaurant will be posted where other employee notices are located. Smoking is never permitted (1) in the restaurant, (2) while in public view or (3) in public areas while employees are in their work clothes. Smoking in areas and at times that are prohibited may result in termination.

STAYING AFTER HOURS: We understand that after work, hourly associates may want to relax and unwind as guests. Managers will advise employees regarding specific restaurant policies on whether and when staying after hours is acceptable. Employees who are not “on the clock” cannot do any work, even if they just want to “help out” coworkers.

PROHIBITED CONDUCTThe following conduct is prohibited and will not be tolerated by AAG. This list of prohibited conduct is illustrative only; other types of conduct that threaten security, personal safety, employee welfare and AAG operations also may be prohibited.

• Falsifying employment records, employment information, or other AAG records (note that employment information includes Social Security Numbers and any other documents used to verify identity and ability to work in the United States);

• Recording the work time of another employee or allowing any other employee to record your work time, or falsifying anytime record, either your own or another employee’s;• Theft and deliberate or careless damage or destruction of any AAG property, or the property of any employee or

customer;• Removing or borrowing AAG property without prior authorization;• Unauthorized use of AAG equipment, time, materials, or facilities;• Provoking a fight or fighting during working hours or on AAG property;• Participating in horseplay or practical jokes on AAG time or on AAG premises;• Carrying firearms or any other dangerous weapons on AAG premises at any time;• Engaging in criminal conduct whether or not related to job performance;• Causing, creating, or participating in a disruption of any kind during working hours on AAG property;• Insubordination, including but not limited to failure or refusal to obey the orders or instructions of a supervisor or member

of management, or the use of abusive or threatening language toward a supervisor or member of management;• Violating other policies within this handbook;• Using abusive language at any time on AAG premises;• Failing to notify a supervisor when unable to report to work;• Failing to consistently perform managerial duties when working as a manager;• Unexcused absence;• Failing to obtain permission to leave work for any reason during normal working hours;• Failing to observe working schedules, including rest and lunch periods;• Failing to provide a physician’s certificate when requested or required to do so;• Sleeping or malingering on the job;• Smoking at an unauthorized time or in an unauthorized location (includes smoking in public while in uniform);• Working overtime without authorization or refusing to work assigned overtime;• Wearing disturbing, unprofessional or inappropriate styles of dress or hair while working;• Violating any safety, health, security or AAG policy, rule, or procedure• Committing a fraudulent act or a breach of trust under any circumstances;• Committing of or involvement in any act of unlawful harassment of another individual; and• Failing to promptly report work-related injury or illness.

This statement of prohibited conduct does not alter AAG's policy of at-will employment. Either you or AAG remain free to terminate the employment relationship at any time, with or without reason or advance notice.

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ASSET PROTECTION GUIDELINES FOR MANAGERS

Our company Asset Protection program consists of two parts: protecting against loss due tointernal and external theft and protecting against loss due to accidents. These guidelinessupport our Asset Protection efforts and help to drive productivity, profitability, and morale.

Restaurant Opening and Closing

Statistically, your restaurant is most likely to become a victim of a crime incident during theopening and closing times each day. To help ensure the safety of our employees,Applebee’s requires that the following security procedures are followed when opening or closing the restaurant.

Opening Procedures

• At least two (2) employees must be scheduled to open the restaurant.• Before opening the front door, the opening manager must drive around the building and look for anything out of the

ordinary, such as open back dock gates, open doors, broken locks or windows, etc.• If the manager observes any unknown individuals loitering in the vicinity of the restaurant, the manager should exercise

caution when approaching the restaurant.• If any evidence of an attempted or successful break-in is found during the exterior inspection, immediately contact the

police or call 911. Do not try to enter the building.• If the exterior inspection reveals nothing unusual, proceed with opening the front door. The opening manager must

use the front door to enter the restaurant.- Enter the building vestibule to disarm the alarm.- Observe the alarm key pad for faults occurring in any of the zones.- Enter the building and complete a walk-through to make sure it is secure. Complete this walk-through within two

minutes.• If you are confronted by a robber when entering the building, enter your “hold up” code instead of your normal code.

This will send a silent alarm to the police.• Give the second employee the “all clear” signal allowing them to enter the building.• Opening employees must keep all outside doors closed and locked prior to opening.• All employees must enter and exit using only the back door prior to opening.

Closing Procedures

• Each restaurant should have at least two employees in the building to complete closing procedures. Any hourly employee(s) accompanying the closing manager must be clocked-in at all times.

• Make an initial inspection of the restaurant one-half hour before the store closes to determine if possible suspectsare hiding in or around restaurant. Complete the same inspection once the last guest leaves the restaurant. Areas to check include: bathrooms, waiting area, vestibule, etc.

• Lock all doors at the specified closing time and ensure that all doors are secure after the last guest leaves therestaurant.

• Do not allow employees to loiter in or around the restaurant after closing.• All employees must exit through the locked front door.• Employees should walk to their cars in groups of two or more.• If any employee is approached by an unknown individual while walking to their car, or if they observe anyone acting

suspiciously in the parking lot, they should notify the closing manager immediately.• All building lights (goosenecks, wall sconces, security lights) must remain on until the manager is ready to leave the

building. This will discourage anyone from hiding in the bushes or other blind spots near the exits. If the lights are ontimer, the manager must temporarily override the setting to ensure that the lights stay on as needed.

• If for any reason you feel uncomfortable going to your car, call mall security or your local police department to escort you to your car.

• The closing manager must follow all cash handling guidelines during the closing process. This requires the managerto prepare the PM deposit and place it in a single-use, numbered deposit bag; log the deposit on the DepositVerification Log; and place the deposit in the safe prior to leaving. Failure to lock the deposit in the safe will result intermination.

• Verify all doors are secure before leaving and arm the restaurant’s alarm system when exiting.• Allow the other closing associate to proceed to their vehicle. • After the associate has arrived safely at their vehicle, arm the restaurant’s alarm system, then exit the restaurant.

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Banking Procedures

• Bank deposits must be made daily to include the previous day’s AM and PM deposits.• Deposits are to be taken to the bank prior to opening, during daylight hours only.• Place the deposit in a secondary container such as a bag or briefcase. NEVER carry the deposit

envelope in the open.• Vary your times that you go to the bank.• When making deposits, go directly to the bank.• If the bank is open, go inside. This ensures an immediate validated deposit receipt.• Go through the front door when going to the bank and not the back door.• On Sunday and holidays, use the after-hours “night” depository at the bank. Again, this must be done during daylight

hours.• Do not approach the night drop if there are other people around.

Physical Security Guidelines

The back door must be secured and alarmed at all times unless a manager is present at the door. The only exception is during a delivery or garbage run.

The office door must be closed at all times when the restaurant is open and there are associates, guests, vendors, or repair/maintenance workers in the building.

The office safe must be closed and locked unless a manager is in the office and actively counting the safe contents or making a deposit.

The cash drawer and cabinet containing the petty cash box must be locked at all times when there is money in thedrawer or cabinet.

The liquor supply cabinet/closet and beer cooler must be closed and locked unless the manager is removing or restocking items.

The mechanical room and shed must be closed and locked at all times unless a manager is present. The onlyexceptions are during extended periods of maintenance or during a delivery.

The manager must never give their keys to an associate, vendor, or repair/maintenance worker. No employee, guest, vendor, or repair/maintenance worker is to be left in the office without a manager present. The front door must remain locked until the prescribed opening time and must be locked immediately at closing.• Guests, and associates that are not clocked-in, are never permitted to be in a non-public area (area other than FOH),

including behind the bar.• A manager must never leave the restaurant unattended during operating hours. The only exception is when the opening

MOD goes to the bank prior to restaurant opening.

Manager Swipe Cards/Passwords/Codes

• Managers are not permitted to hand their swipe card to any employee or to allow their card to be used by anyone other than the manager that the card is assigned to.

• Managers are not permitted to give any passwords or access codes (ROSnet, GEM, alarm codes, safe combinations,website access information, phone codes, etc.) to any employee, vendor, or repair/maintenance workers unless directed to do so by the Help Desk, Support Center, or Area Director.

• Managers are not permitted to share individual passwords (POS; Apple One Cards, etc.) with other managers.• Managers are not permitted to use their 4 digit POS card number to access the FOH POS terminals unless directed to

do so by the Help Desk or IT Department.

Proprietary/Confidential Information

• Managers are not permitted to discuss confidential or proprietary information with anyone that is not employed by AppleAmerican Group without permission from their Area Director or Director of Operations. This includes, but is not limited to sales, profit, vendor listing, cost of goods, recipes, computer/IT information, etc.

• Managers are not permitted to disclose information related to operating procedures, human resources policies,progressive discipline, employee/manager training, inspections/assessments, etc. with anyone that is not employed by Apple American Group without permission from their Area Director or Director of Operations.

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General Safety Procedures

• Managers must ensure that all safety procedures are followed, i.e. use of cutting gloves, wearing of slip-resistant shoes,etc.

• Managers must ensure that all food safety procedures are followed, i.e. use of thermocouple, proper cooling/thawingprocedures, use of tongs, use of single-use gloves, use of sanitizer, chemical safety procedures, etc.

• Managers must address any potential issues that pose a danger to guests or associates or affect our ability to maintain refrigeration temperatures.

• Managers and employees are not permitted to carry any weapons on company property.

Cash Handling/Accounting/Discounts

• Managers must verify that the server has turned in all zero balance checks, all comp or voided checks, and all signedcredit card checks.

• The manager should verify the credit receipts turned in reconcile with the checks listed on the server checkout report.• Excessive tips and missing or questionable credit card receipts should be investigated and verified.• Managers will initial the server checkout as verified and file the checks accordingly.• Once the server has checked out, their reconciled cash must be secured in a locked safe/drawer.• Only one server at a time is permitted in the office when cashing out.• If a credit or gift card receipt is not presented or signed, the validity of the transactions should be addressed with the

server by the Manager. If any discrepancies occur, the manager will correct the problem with a Pullback, adjust as necessary, and then rerun the Server checkout. The server must sign the new Server checkout.

• The server will sign the server check-out stating that he/she has turned in the cash only after the manager verifies thecash and the manager will sign stating that he/she has received the cash.

• Managers will not adjust invoices or apply credits without proper documentation.• Managers will not issue IOUs or borrow money from Petty Cash or the daily deposits.• Managers will not borrow money from employees, vendors, guests, etc.• Managers will follow all guidelines regarding discounting guest checks.• Managers will ensure that all food and beverage products are paid for or accounted for with proper discounting.

SAFETY AND HEALTHACCIDENT REPORTING: Any employee who suffers an accidental injury, no matter how minor, must be reported to management immediately. This is a Government requirement placed on both employee and employer.

EQUIPMENT: Care is required in the handling of all equipment and supplies. It is expected that employees will handle all equipment as instructed.

GENERAL SAFETY POLICY: All employees are responsible for their own safety, as well as that of others in the workplace. To help us maintain a safe workplace, everyone must be safety-conscious at all times. Report all work-related injuries orillnesses immediately to management.

HAZARDS: All safety hazards such as broken equipment, damaged machinery or tools, or slippery floors should bereported to the Risk Manager immediately.

OBJECTS ON THE FLOOR: Immediately pick up anything dropped on the floor and any foreign object on the floor. Keep aisles, halls and walkways free from electric cords or hoses.

SECURITY: Be aware of persons loitering for no apparent reason in parking areas, walkways, entrances and exits, andservice areas. Report any suspicious persons or activities to management. Do not leave valuable and/or personal articlesin the office. AAG is not responsible for personal belongings brought into the Support Center.

SLIPPERY FLOORS: For safety’s sake, wipe up any spill at once--and wipe it dry.

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WORKPLACE VIOLENCE: AAG has a zero tolerance for acts of violence and threats of violence. Without exception, actsand threats of violence are not permitted. All such acts and threats, even those made in apparent jest, will be takenseriously, and will lead to discipline up to and including termination.

A threat includes, but is not limited to, any indication of intent to harm a person or damage AAG property. Threats may bedirect or indirect, and they may be communicated verbally or nonverbally.

Possession of weapons on AAG premises and at AAG-sponsored events shall constitute a threat of violence. Employeesmay not possess a firearm on AAG property regardless of whether or not they have a permit. Other prohibited items are:explosives, knives and other dangerous weapons, including chemical substances intended to cause injury to another.

It is every employee’s responsibility to assist in establishing and maintaining a violence-free work environment. Therefore, each employee is expected and encouraged to report any weapon or incident that may be threatening or violent.Employees may submit a report to any supervisor, Human Resources, or via the Employee Hotline (800-837-3667, ext.1300).

LEAVING AAGEMPLOYEE REFERENCES: All requests for references must be directed to your Human Resources Generalist. No other manager or employee is authorized to release references for current or former employees. AAG’s policy is to only disclosethe dates of employment and the title of the last position held of former employees. If an employee authorizes thedisclosure in writing, AAG also will inform prospective employers of the amount of salary or wage the employee last earned.

NOTICE: If an employee must resign, we request a written 2-week notice, so that we can plan accordingly. During the final2 weeks, we expect that employees will continue to perform their job duties properly. Providing notice does not alter the at-will status of your employment and AAG may accept your resignation immediately or at any time during the notice period.

VOLUNTARY RESIGNATION: Voluntary resignation results when an employee voluntarily quits his or her employment at AAG or, in the absence of a severe, unforeseeable medical emergency that is verified by a medical professional, fails to report to work for two (2) scheduled workdays without notice to, or approval by, his or her manager. All AAG-owned property, including keys, must be returned immediately upon termination of employment.

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DISPUTE RESOLUTION PROGRAM[2004EDR Systems, LLC/All Rights Reserved/Revised 2012]

This Dispute Resolution Program is adopted for Apple American Group (Apple American Group LLC and Apple AmericanGroup II LLC) and all subsidiaries or affiliated entities, and all successors and assigns of any of them, all of which arecollectively hereinafter referred to as the “Company.”

The Company is committed to building a strong relationship between the Company and all of our employees - arelationship that is based on trust and open communication. The Company is an equal opportunity employer and strivesto maintain an atmosphere of mutual trust and open, honest communication. By working together, we can reach anygoal we set for ourselves. We do not and will not tolerate harassment or discrimination by any employee, regardless oftheir status with the Company, and no employee will be retaliated against for using this Program.

We understand, however, that problems and disagreements are unavoidable when people with different viewpointsspend a lot of time together. We cannot entirely eliminate disagreements, but we can provide a process for resolvingthem when they do occur by taking prompt constructive action.

Based on these beliefs and values, we developed this DISPUTE RESOLUTION PROGRAM (the “Program”). TheProgram is a four- step process for resolving workplace problems quickly and fairly. This policy describes the steps that both you and the Company must take to resolve many types of workplace problems. The Company is also obligated tofollow the Program and will also be bound by arbitration. The types of problems covered by the Program are explained indetail in this policy.

THIS PROGRAM IS A CONDITION OF YOUR EMPLOYMENT AND IS THE MANDATORY AND EXCLUSIVE MEANSBY WHICH DISPUTES BETWEEN YOU AND THE COMPANY MAY BE RESOLVED, SO READ THE INFORMATIONIN THIS PROGRAM BOOKLET CAREFULLY.

When you have a work-related problem, follow the steps listed below in this policy.

Step 1: UTILIZE THE OPEN DOOR POLICYIn any relationship, when a disagreement occurs, keeping emotions bottled up inside only causes the problem to get bigger. At the Company we want to encourage open communication so we can solve the problem with the least amount of stress for those involved. To do this, we have developed an Open-Door Policy that encourages you to talk with yourmanager to get your concerns addressed quickly.1. Talk directly to your immediate manager. If you have a problem, first discuss it with your Manager or General Manager as soon as possible after the problem arises.2. Talk to a higher level of management. Sometimes, you may not be able to resolve the issue with your Manageror General Manager. If this is the case, take your concern to your Area Director, Director of Operations or up to the Market President to get the answers you need.3. Talk with Human Resources. If you have tried the above steps and are not satisfied, or if you are not comfortable talking to your managers for any reason, you can contact your Human Resources Generalist to get the help you need.4. Talk with Support Center. If for any reason you are uncomfortable with following the prior steps, you should feelfree to contact the Support Center Human Resource Dept. at 216.525.2775 or Employee Hotline at 800.837.3667 x1300and ask for help.

Step 2: EXECUTIVE REVIEWIf you have tried the Open Door Policy and are not satisfied, you may request the Executive Review Step. In this step, the Company’s President or his designee (the “Executive”) will review the issue or problem and attempt to resolve theissue or problem to your satisfaction and to the satisfaction of your Manager and the Company. Failing that, theExecutive will make a decision.

Here is how you obtain access to the Executive Review Step:

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1. Request review. As soon as possible after your exhaustion of the Open Door Policy Step process, you can startthe Executive Review process by contacting the Company’s Employee Relations department. The Employee Relations department can be reached at 216.525.2775 or you can call the Employee Hotline at 800.837.3667 x1300 and ask for help.2. Submit information. In order to access the Executive Review Step, you should provide a written statement thatcontains as much of the following information as is reasonably available to you:a. Describe in detail, to the best of your ability, the factual basis on which your claim is made.b. Describe the measures you have taken at the Communication Step to resolve the issue including the supervisorsyou have spoken with about the problem.c. Describe the nature and extent of any remedy or relief you believe you should have.*You can obtain a copy of a form to use for this purpose from the Human Resources Department.3. The Review. The Company’s Executive will review the problem and make whatever investigation he believes isappropriate under the circumstances. This may include, in all likelihood, a discussion with you and your Manager and areview of all relevant documents.4. The Solution. The Executive will attempt to find a way to resolve the problem to the satisfaction of all the partiesinvolved in the situation. However, if the problem cannot be resolved in this manner, the Executive will make a decision.That decision will be made in writing, generally within thirty (30) days of your request for executive review.5. Non-Legal Claims. If your claim is not a statutory or common law claim (“legal claim”), Executive Review is thefinal step in the Dispute Resolution Program. (Only legal claims may proceed to mediation or arbitration). For example,mediation and arbitration are not available to review performance evaluations, job elimination or lay-off decisions,Company work rules, policies and pay rates, or increases or decreases in benefits, except to the extent such mattersrelate to statutory or common law claims.

Step 3: MEDIATIONIf you believe you have a legal claim that was not solved through the Open Door Policy or Executive Review, the nextstep is Mediation. In Mediation, an objective, independent third party tries to help the parties reach a mutually agreeablesolution.

When you or the Company requests Mediation, the Company will contact the American Arbitration Association (AAA) or a similar organization specializing in dispute resolution. The agency will assign a professional mediator to mediate thedispute. The mediator will listen, work to open communication lines, and offer creative solutions. But the mediator doesnot make a final decision. It is up to you and the Company to reach agreement. The goal of mediation is to develop asolution that satisfies both parties involved.

Here is how to put the Mediation Step to work for you:

1. Advise the Employee Relations department that you request Mediation. You should request Mediation assoon as possible, generally within sixty (60) days from the date you complete the Executive Review Step, so that theissues will be fresh in your mind. You will be requested to complete a Request for Mediation form, which will befurnished.2. Select mediator. When either you or the Company request Mediation, the parties will select an outside, independent neutral mediator to handle the mediation process. The Company will pay the fees of the mediator and themediation agency.3. You, the mediator and the Company representative meet. The mediator will schedule a meeting between youand the Company representative. The mediator will guide the discussion and help resolve the problem. However, it is upto both you and the Company to reach agreement. The mediator does not make the final decision.4. Written agreement. If appropriate, after you and the Company have agreed upon a solution, a written agreement will be signed by the parties.

Step 4: ARBITRATIONIf you have a work-related problem that involves one of your legally protected rights, which has not been resolvedthrough the earlier steps, you may request Arbitration.

In Arbitration, an outside neutral expert chosen and agreed upon by you and the Company, called an “arbitrator”,becomes involved in the resolution process. He or she listens to the facts, then makes a final binding decision andawards any damages, just like a judge in a court of law. Arbitration is less formal than conventional court litigation but isclearly established and governed by rules and standards of conduct, which are designed to assure due process of law isfully protected. The goal of Arbitration is to provide effective and efficient problem resolution.

Here is how the Arbitration process works:

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1. Request Arbitration. If you believe you have a legal claim, you may request that your claim go to Arbitration.Simply complete an Arbitration Request Form (provided upon request) and return it to the Company at its Cleveland, Ohio Support Center addressed to the attention of the Apple American Group Employee Relation Department, 6200 OakTree Blvd, Suite 250, Independence, Ohio 44131. The form can be obtained from your Human Resources Generalist.The Arbitration will be conducted by the AAA or any similar organization mutually acceptable to you and the Company. The arbitration will be conducted under the AAA’s “National Rules for the Resolution of Employment Disputes”, which are in effect at the time the demand for arbitration is filed. The rules can be obtained from the AAA’s website at ADR.org or from the Company upon request.

The arbitration agency selected (the “agency”) will then bill you and the Company each a filing fee. Your portion of thatfee is limited to $125.00. The Company will pay the balance of the agency’s initial filing fee and will pay the arbitrator’sfee. If you establish that you cannot pay the filing fee, the Company will pay your portion of the fee.

2. A hearing is set. The arbitrator will schedule a date, time and place for a hearing. During this hearing, both youand the Company present the pertinent facts, documents, and witnesses. You may hire a lawyer to participate in theArbitration hearing with you. The hearing will be conducted in the community where you are/were employed by the Company or in another mutually agreeable location.

3. A decision is made. Based on the information presented and the facts gathered, the arbitrator will make a finalbinding decision in writing that will set forth the essential findings and conclusions on which the award is based. Thedecision of arbitrator shall have a final and binding effect in any related litigation. If you win, the arbitrator can award youanything you might seek through a court of law. By using Arbitration, your rights are protected and damages can be paidif those rights have been violated.

PROGRAM RULES CLAIMS SUBJECT TO ARBITRATIONClaims and disputes subject to arbitration include all those legal claims you may now or in the future have against theCompany or against its officers, directors, shareholders, employees or agents, including claims related to any Companyemployee benefit program or against its fiduciaries or administrators (in their personal or official capacity), and all claimsthat the Company may now or in the future have against you, whether or not arising out of your employment or termination, except as expressly excluded under the “Claims Not Subject to Arbitration” section.

Legal claims that are subject to arbitration include, but are not limited to: claims for wages or other compensation; claims for breach of any contract, covenant or warranty (expressed or implied); tort claims (including, but not limited to, claims for physical, mental or psychological injury, but excluding statutory

workers compensation claims); claims for wrongful termination; claims for sexual or other illegal harassment or discrimination (including, but not limited to, claims based on race, sex,

sexual orientation, religion, national origin, age, medical condition or disability whether under federal, state or locallaw);

claims for benefits or claims for damages or other remedies under any employee benefit program sponsored by the Company (after exhausting administrative remedies under the terms of such plans);

“whistleblower” claims under any federal, state or other governmental law, statute, regulation or ordinance; claims for a violation of any other non-criminal federal, state or other governmental law, statute, regulation or

ordinance; and claims for retaliation under any law, statute, regulation or ordinance.

CLAIMS NOT SUBJECT TO ARBITRATIONThe only claims or disputes not subject to arbitration are as follows: any claim by an employee for benefits under a plan or program which provides its own binding arbitration procedure; any statutory workers compensation claim; and unemployment insurance claims;

Your agreement to adhere to this Dispute Resolution Program does not prohibit you from pursuing an administrativeclaim with the National Labor Relations Board, any state or federal department of labor, the Idaho Human Rights Commission, or the United States Equal Employment Opportunity Commission. This Agreement, does, however, preclude you from personally pursuing court action regarding any such claim.

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Additionally, nothing in this Agreement is intended to prevent either you or the Company from obtaining injunctive relief incourt to prevent irreparable harm pending the conclusion of any arbitration conducted hereunder and either of us mayapply to the appropriate state or federal court for a temporary restraining order, preliminary injunction, or other interim orconservatory relief, as necessary, without breach of this arbitration agreement and without abridgement of the powers ofthe arbitrator.

The parties also agree that any arbitration between the employee and the Company is of their individual claim and thatany claim subject to arbitration will not be arbitrated on a collective or class-wide basis. However, this provision does not preclude employees from exercising their rights under the National Labor Relations Act to joining other employees in acollective action to improve working conditions.

Also, any non-legal dispute is not subject to arbitration. Examples include disputes over a performance evaluation,issues with co-workers, or complaints about your work site or work assignment which do not allege a legal violation.

Neither the employee nor the Company has to submit the items listed under this “Claims Not Subject to Arbitration”caption to arbitration under this Program and may seek and obtain relief from a court or the appropriate administrativeagency.

REQUIRED NOTICE OF ALL CLAIMSWhen seeking arbitration, the claimant must file the Request for Arbitration form and give written notice of any claim to the other party within one year of the act complained of or within the applicable statute of limitations period, whichever islonger. Subject to any exceptions under applicable law, the day the act complained of occurred shall be counted for purposes of determining the applicable period.

Use the Request for Arbitration form when submitting a claim for arbitration. Identify and describe the nature of all claims asserted and the facts on which your claims are based. Send this written notice by certified or registered mail, return receipt requested. If the Company wishes to invoke Arbitration, it will also complete a Request for Arbitration formidentifying and describing the nature of all claims asserted and the facts on which the claims are based and send thiswritten notice to you at the last address recorded in the Company’s payroll records.

ARBITRATION PROCEDURESYou must use the Mediation Step explained in this policy before requesting Arbitration. The agency will administer anyArbitration under the AAA’s “National Rules for the Resolution of Employment Disputes” and in conformity with thisDispute Resolution Program. Go to ADR.org to obtain a copy of the rules or request a copy from the Company. Therules in effect on the date a demand is made shall control.

The arbitration will be before a neutral arbitrator who is licensed to practice law and who has significant experience in theemployment law area. The arbitration shall apply the substantive law and the laws of remedies, if applicable, of the statein which the claim arose, or federal law or both, depending upon the claims asserted. The decision of the arbitrator shallbe in writing and shall provide the reasons for the award unless the parties agree otherwise.

The arbitrator shall have jurisdiction to hear and rule on pre-hearing disputes and is authorized to hold a pre-hearingconference by telephone or in person, as the arbitrator deems necessary. The arbitrator shall have the authority to ruleon a motion to dismiss and/or a motion for summary judgment by any party and, in doing so, must apply the standardsgoverning such motion under the Federal Rules of Civil Procedure.

PRE-HEARING PROCEDURESYou and the Company each have the right to take the deposition of individuals and expert witnesses designated byanother party. Depositions and other pre-trial discovery will be taken in accordance with the order of the arbitrator selected under the Program, who shall allow adequate discovery. You and the Company have the right to subpoenawitnesses to the Arbitration in accordance with the Federal Rules of Civil Procedure. At least thirty (30) days before theArbitration, you and the Company must exchange lists of witnesses, including any experts, and copies of all exhibits to beused at the Arbitration.

ARBITRATION FEES AND COSTSThere are two types of administrative fees and costs associated with Arbitration; a filing fee with the arbitration agencyselected and payment to the arbitrator for his or her services and expenses. Such fees and other expenses shall beallocated as follows:

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1. The party requesting Arbitration must pay a $125.00 filing fee to the agency to request Arbitration. If you requestArbitration the Company will pay the balance of the initial filing fee, and will pay the entire fee if it requests Arbitration.2. Either party, at its expense, may arrange for and pay the cost of a court reporter to provide a stenographic record of the Arbitration proceedings.3. Each party shall be responsible for its own attorneys’ fees and related litigation expenses, if any; however, if anyparty prevails on a statutory claim, which allows the prevailing party to be awarded attorneys’ fees the arbitrator mayaward reasonable fees to the prevailing party.4. Where permitted by law, the arbitrator may assess attorneys’ fees against a party upon showing by the other partythat the first party’s claim is frivolous or unreasonable or factually groundless.5. If either party pursues a legal claim covered by the Dispute Resolution Program in court or by any means other thanArbitration, the responding party shall be entitled to stay or dismissal of such action, the remand of such action to Arbitration, and the recovery of all costs and attorneys’ fees and expenses related to such action.

MULTI-STATE BUSINESSThe Company is engaged in transactions involving interstate commerce and your employment involves such commerce; therefore, the parties agree that the Federal Arbitration Act shall govern the interpretation, enforcement and proceedingsunder the Dispute Resolution Program.

PROGRAM PROVISIONS/ENFORCEMENTThe provisions of the Program document are severable and, should any provision be held unenforceable, all others willremain valid and binding. No provision of the Program document will be held unenforceable if such provision can bereasonably interpreted in a manner that results in such provision being enforceable. The arbitrators, and not any federal, state, or local court or agency, shall have exclusive authority to resolve any dispute relating to the interpretation,arbitrability, applicability, enforceability or formation of the agreement to arbitrate including, but not limited to, any claimthat all or any part of the agreement to arbitrate is void and voidable.

If a court should determine that Arbitration under this Program is not the exclusive, final, and binding method for theCompany and its employees to resolve disputes and/or that the decision and award of the arbitrator is not final andbinding as to some or all of a party’s claim(s), the party must submit the claim(s) to Arbitration and pursue the Arbitrationto conclusion before filing or pursuing any legal, equitable, or other legal proceeding for any eligible claim in a court ofcompetent jurisdiction.

PROGRAM STEPSWhile we encourage you to use all of the steps in the Program in the order outlined, we realize that in some cases it maynot be appropriate to use the preliminary steps. Accordingly, if your claim involves a legal claim that is subject toArbitration hereunder, you may proceed directly to Step 3, Mediation, without first using Step 1, Open Door Policy or Step 2, Executive Review. The Company may skip Steps 1 and 2 if a legal claim is involved.

NOT AN EMPLOYMENT CONTRACT/EXCLUSIVE REMEDYWhile this Program constitutes a binding promise between you and the Company to resolve all disputes pursuant to theprocess outlined herein, this Program is not and shall not be construed to create any contract of employment, expressedor implied. Nor does this Program in any way alter the “at will” status of any employment.

This Program will prevent you from filing a lawsuit in Court for individual, class, or collective relief for a legal claim subjectto arbitration.

[2004EDR Systems, LLC/All Rights Reserved/Revised 2012]

Apple American Group (Apple American Group LLC and Apple American Group II LLC) includes the following subsidiaries and affiliates: Apple Delaware LLC, Apple Indiana I LLC, Apple Indiana II LLC, Apple Indiana III LLC, Apple New Jersey LLC, Apple NorCal LLC, WineCountry Apple LLC, Apple Ohio LLC, Apple Pennsylvania LLC, B.T. Woodlipp, Inc, Apple Washington LLC, AppleSoCal LLC, Apple Nevada LLC, Apple Minnesota LLC and Apple New England LLCandall subsidiaries or aff iliated entities and all successors and assigns of any of them.