norfolk motor company employee handbook...at norfolk gm auto center we know we have some of the best...

Norfolk Motor Company Employee Handbook

This handbook dated November 2016 supersedes and replaces all previous handbooks, past policies and procedures.

Norfolk Motor Company Employee Handbook November 2016

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Table of Contents

Table of Contents ............................................................................................... 2

Section I: Rydell History and Philosophy ........................................................ 4

Purpose of this Employee Handbook ......................................................................................................................... 4

Introduction and History ............................................................................................................................................ 4

Vision, Mission, Philosophy, Values ......................................................................................................................... 5

Section II: Employment Practices and Benefits ............................................. 6

Normal Business Hours ............................................................................................................................................. 6

Equal Employment Opportunity ................................................................................................................................ 6

Reasonable Accommodation Requests ...................................................................................................................... 6

Employment Applications ......................................................................................................................................... 7

Internal Growth Opportunities ................................................................................................................................... 7

Introductory Period .................................................................................................................................................... 7

Employee Records ..................................................................................................................................................... 7

Outside Inquiries Concerning Employees ................................................................................................................. 8

Overtime .................................................................................................................................................................... 8

Time Cards ................................................................................................................................................................ 8

Meal Periods and Breaks ........................................................................................................................................... 8

Employee Classification ............................................................................................................................................ 8

Wage and Salary Policy ............................................................................................................................................. 9

Time Off, FMLA, Military Leave and Other Leaves .............................................................................................. 10

Insurance and Other Benefits ................................................................................................................................... 18

Employee Discounts ................................................................................................................................................ 21

Section III: Employee Conduct & Responsibilities ........................................ 23

Employee Conduct Expectations ............................................................................................................................. 23

Business Travel Policy ............................................................................................................................................ 27

Violence-Free and Weapons-Free Workplace Policy .............................................................................................. 27

Web-Blogs and Online Communication Policy ....................................................................................................... 28

Harassment-Free Workplace/No Retaliation Policy ................................................................................................ 29

Conflicts of Interest ................................................................................................................................................. 30

Dealership Keys ....................................................................................................................................................... 31

Computer Use Policy ............................................................................................................................................... 31

Cell Phone Use Policy ............................................................................................................................................. 32

No Tape-Recording Policy ...................................................................................................................................... 32

Company Purchases ................................................................................................................................................. 32


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Drivers Licenses and Driving Records .................................................................................................................... 32

Job Performance ...................................................................................................................................................... 32

Meetings .................................................................................................................................................................. 33

Resignation and Termination ................................................................................................................................... 33

Bridging Service ...................................................................................................................................................... 33

Section IV: Health, Safety and Security .......................................................... 33

General Safety Rules ............................................................................................................................................... 33

Workers’ Compensation Insurance .......................................................................................................................... 35

Alcohol and Drug Free Workplace Policy ............................................................................................................... 35

Hazardous and Toxic Materials ............................................................................................................................... 36

Visitor Policy ........................................................................................................................................................... 37

Off Hours and Off Duty Policies ............................................................................................................................. 37

Section V: Customer Information and Disclosures ....................................... 39

Gramm Leach Bliley Act of 1999- Privacy Notice Act ........................................................................................... 39

Cash Reporting Policy ............................................................................................................................................. 39

Legal Requirements ................................................................................................................................................. 39

Section VI: Dealership Property and Vehicle Use ......................................... 40

Use of Company Property and Vehicles .................................................................................................................. 40

Damage to Property ................................................................................................................................................. 41

Operation of Customer Vehicles .............................................................................................................................. 41

Section VII: Our Customers ............................................................................. 42

Section VIII: Conclusion .................................................................................. 42


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Section I: Rydell History and Philosophy Purpose of this Employee Handbook This handbook is designed to acquaint you with NMC and to give you a ready reference to answer most of your questions regarding your employment with us. We intend for this handbook to offer two-way communications: what you can expect from us, and what we expect from you. The contents of this handbook constitute a summary of the employee benefits, personnel policies, and employment regulations in effect at the time of publication. This handbook should not be construed as creating any kind of “employment contract,” as the Dealership has the ability to add, change or delete wages, benefits, policies and all other working conditions, provided such changes do not violate Federal, State or Local laws, as it deems appropriate without obtaining another person’s consent or agreement. This handbook contains the entire agreement between you and the Dealership as to the duration of employment and the circumstances under which employment may be terminated. As provided in the “Employee Acknowledgment and Agreement,” nothing in this handbook creates or is intended to create a promise or representation of continued employment. Employment at the Dealership is employment at-will and may be terminated at the will of either the Dealership or the employee. You have the right to terminate your employment at any time, with or without cause or notice, and the Dealership has the similar right. Employment “at-will” is the sole and entire agreement between the Dealership and you concerning the duration of your employment and the circumstances under which your employment may be terminated. This handbook shall supersedes any and all prior handbooks, written documents or oral representations, issued by the Dealership, that contradict the “at-will” nature of your employment.

Introduction and History Welcome to Norfolk Motor Company. We are pleased that you are a part of our team, and we know that your contributions will assist us in remaining a leader in this community and in our industry. Norfolk Motor Company is also known locally as Norfolk GM Auto Center. The Dealership could also be referred to throughout this handbook and any additional posted policies as NMC or NGMAC or simply as “The Dealership”. Norfolk Motor Company was established in July 2007. The Dealership itself, however, has been a part of the Norfolk community since 1979. Although we are locally owned by Andy Swanson, we remain a part of the Rydell Dealership Group of Grand Forks, ND, We are part of one of the largest dealership groups in the United States. These dealerships share the same vision, philosophies and values. As an employee of the NMC organization, you are our greatest asset. You personally conduct the business that makes our customers enthusiastic. The dealership makes ongoing efforts to have NMC be a pleasant and rewarding place for you to work. We hope all our employees will achieve the level of success and satisfaction that they desire. This handbook provides basic information plus the NMC vision, philosophy, mission and values. As you become familiar and comfortable with your job and your department, the department managers will answer any specific questions that you may have. They will also provide you with information regarding the standards, measurements, systems and operations that apply to your department.


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Vision, Mission, Philosophy, Values

The NMC Vision “To Be So Effective That We are Able to Be Helpful to Others”

The NMC Mission Statement To provide automotive products and services that exceeds our customer’s needs and expectations. Our aim is to be the recognized leader in customer enthusiasm, employee satisfaction, financial strength, market dominance, and ongoing quality improvement.

The NMC Philosophy The NMC philosophy is based on five areas that we believe are critical to business success. Those areas are: CUSTOMER ENTHUSIASM EMPLOYEE SATISFACTION FINANCIAL PERFORMANCE MARKET PENETRATION ONGOING IMPROVEMENT Our philosophy holds that each are is of equal importance. We continually strive to reach a level of excellence in each area. However, in any planning or decision making process, or in any situation of seeming conflict or contradiction among the five critical areas, CUSTOMER ENTHUSIASM will always carry the most weight.

The NMC Values We believe these basic values bring success to our business and the personal lives of our employees: The Value of Honesty and Integrity: We believe that all decisions are to be made with integrity. Leadership is setting good examples for others to follow, expecting as much from yourself as others. The Value of Individual Responsibility and Accountability: We believe that we are responsible to satisfy the needs of our customers for all our products and services. Individual accountability for our own performance and for the quality of our products will demonstrate to our customers that we are enthusiastic about them and really care. The Value of Unconditional Dedication to Excellence: We believe that there is no place for mediocrity and halfhearted efforts. We accept personal responsibility for overcoming obstacles and being the very best. We actively choose to excel in every aspect of our personal and professional lives. The Value of Cooperation and Communication: Close mutual support of one another is a fundamental tenet of ours. We value open communication and encourage new ideas, realizing that teamwork produces a better employee work environment and enthusiastic customers and suppliers. The Value of Our People: We have nothing of greater value than our people. We respect their uniqueness of every individual and believe that such an attitude will build a team of confident, creative members possessing a high degree of initiative, self-respect and self-discipline.


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The Value of Ongoing Improvement: We believe in not accepting the status quo, in constant improvement, and in the value of ongoing education in any form. We believe in providing opportunity for personal, professional and organizational growth within our company. The Value of Being Good Community Citizens: We give willingly to and are actively involved in the support of our communities, because they provide us our success. The Vision, Mission Statements, Philosophy and Values of NMC are the guideposts we use for decision-making in all Dealership situations.

Section II: Employment Practices and Benefits

Normal Business Hours Sales Department Monday- Friday 8:00 a.m. to 7:00 p.m. Saturday 8:00 a.m. to 5:00 p.m. Service and Parts Departments Monday- Friday 7:30 a.m. to 7:00 p.m. Saturday 8:00 a.m. to 5:00 p.m. Body Shop Monday- Friday 7:30 a.m. to 7:00 p.m. Saturday 8:00 a.m. to 5:00 p.m. Business Office Monday- Friday 8:00 a.m. to 5:00 p.m. Service Express Quick Lube Monday- Friday 7:30 a.m. to 7:00 p.m. Saturday 8:00 a.m. to 5:00 p.m. Your Department Manager shall inform you of the hours you are to work. Due to changing needs of our customers, your actual work schedule may vary from time to time. If it does, you will be notified by your Department Manager.

Equal Employment Opportunity

We are committed to providing equal opportunity in all of our employment practices, including selection, hiring, promotion, transfer and compensation, to all qualified applicants and employees without regard to race, religion, color, sex, national origin, citizenship status, age, creed, ancestry, pregnancy, handicap, disability or any other protected status in accordance with the requirements of all federal, state and local laws.

Reasonable Accommodation Requests NMC will seek to provide reasonable accommodation for the disclosed physical and mental limitations of a qualified disabled employee or applicant as required by the American with Disabilities Act or applicable state law. Reasonable accommodation varies depending on the individual circumstances and will be evaluated on a case-by-case basis.


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A qualified individual with a disability is anyone who can perform the essential functions of his or her job with or without reasonable accommodation for the disability. A disability is a physical or mental impairment that substantially limits one or more major life activities that may include walking, seeing, speaking, working, or caring for one’s self. To make an accommodation request, please communicate your request to your immediate supervisor and also to the Human Resource Manager or the Executive Manager/Dealer. If you feel uncomfortable making an accommodation request to your supervisor, you may come directly to Human Resource s or the Executive Manager.

Employment Applications Applications will be received on an open basis from anyone at any time. An opening need not exist for a person to apply. NMC employees are encouraged to identify high-caliber persons in the community that they feel would be an asset to the Dealership and ask them to apply. All applications must be completed online. If it is determined that an employee knowingly falsified information on an application or other new hire document, this will be considered grounds for immediate dismissal.

Internal Growth Opportunities At Norfolk GM Auto Center we know we have some of the best employees in the business. It is our goal to help you grow in whatever area your talents and skills take you. If you are interested in moving into another position or department in the dealership, start by talking to your own manager. Your manager will then discuss the options with both the manager in the department where you are inquiring and with the Executive Manager/Dealer.

Introductory Period Employees may be hired on a probationary basis of 90 days to determine if they fit their job and if the job fits them. If for any reason NMC decides the assignment is not suitable, reassignment or termination will occur. Completion of the probationary period does not ensure continued employment

Employee Records Personal, permanent files will be kept for each employee. They will include payroll information, benefit enrollments, and any information required by management. The Department Manager may maintain other records pertaining to training and specific job evaluations. It is important that your personnel records be kept up-to-date. Your present address and telephone number are essential. Similarly, the current name, address and telephone number of your emergency contact must be on file with the Dealership. If your marital status or dependents change, you may need to change the number of the exemptions claimed for income tax purposes and/or change your group insurance plan. It is your responsibility to keep NMC informed of any such changes. If for any reason you do not want information given to inquiries regarding employment tenure or income, submit a written request to be included in your employee files. A person who wishes to view their own employee file must do so during normal work hours and only in the presence of the Human Resource Manager or Office Manager. No items may be removed from an employee file.


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Outside Inquiries Concerning Employees All inquiries concerning employees from outside sources should be directed to the Office Manager or Human Resource Manager. No information should be given regarding any employee by any other employee or manager to an outside source. No information will ever be provided without an employee-signed release for that information unless required by law (i.e. subpoena from a legal authority).

Overtime Individual work schedules are assigned in a manner that best provides for smooth operations and convenience for our customers. Our hours of operation and dedication to our customers make overtime a standard working expectation in many positions which are classified as “Non-exempt”. Often employees will be scheduled and expected to work in excess of 40 hours per week. Additional overtime, if any, may vary and is not guaranteed. Each Department Manager will make an effort to notify employees as far in advance as possible regarding overtime changes. All overtime must be scheduled and approved by the Department Manager. Overtime and Holiday pay – Overtime is based on actual worked hours. Although holiday pay may show up on a paycheck and appear to contribute toward a 40 hour work week, this is a benefit and if those hours are not worked, Holiday Pay does not contribute toward the overtime calculations in a week.

Time Cards If your position requires the use of a time clock to record your time at work, you must use it when arriving at work at the beginning of your shift, at lunchtime, and at the end of the shift. This is your record and is also the legal record regarding your time at work, so for your benefit, it must be accurate. If you fail to clock in or out, the disputed time needs to be verified by a manager.

Meal Periods and Breaks Lunch and break periods occur at certain times during your work schedule. It may be necessary to vary the times of breaks and lunch periods so we always have personnel available to take care of our customers.

Employee Classification

Full-Time Employees Full-time employees are employees who are normally scheduled to work at least thirty (30) hours per week. Full-time employees are eligible for all of the benefits set forth in the following pages.

Part-Time Employees Part-time employees are employees who are normally scheduled to work fewer than thirty (30) hours per week. Part-time employees are not eligible for most benefits. Part-time employees should consult your supervisor to determine those benefits, if any, for which they are eligible.

Temporary Employees Temporary Employees are employees who are employed to work on special projects for short periods of time, or on a “fill-in” basis. These positions are not intended to be a part of continuing operations. The


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employment status of temporary employees will not be changed due to an extension of employment in excess of that originally planned. Temporary employees are not eligible for benefits. If you have any questions concerning your employee classification or the benefits for which you qualify, please consult your supervisor.

Exempt and Non Exempt

Each employee is designated as either NONEXEMPT, SALARIED NONEXEMPT, or EXEMPT from federal and state wage and hour overtime requirements. NONEXEMPT (hourly) and SALARIED NONEXEMPT employees are entitled to overtime pay under the specific provisions of federal and state laws. EXEMPT (salaried) employees are excluded from specific overtime provisions of federal and state wage and hour laws.

Wage and Salary Policy

Pay Plans Plans vary from department to department. Your manager can explain the procedure for your job or department

Paydays Paydays shall be the 1st and 16th of every month. Your Department Managers will distribute the paychecks on the normally scheduled day. If the scheduled day falls on a weekend or holiday, you will be paid on the following business day. Any questions about your pay amount or deductions should be brought to the attention of your supervisor immediately.

Payroll Deductions Required payroll taxes, insurance premiums, court ordered deductions and other regular and periodic deductions you have authorized will be deducted from your gross pay. Upon separation, all settlement of money will be deducted from your final check.

Credit, Charges and Cash Advances Employees may charge services or parts up to the guidelines below: New Employees, first 90 days $0.00 Employees, after 90 days $150.00 Deductions will be made automatically from your paycheck by the following schedule. $0.00 to $50.00 - Full amount deducted from next check $50.01 to $150.00 - $50.00 deducted from next check(s) In some cases, the total amount may be deducted. Any amounts above the authorized account balance may be automatically deducted from your paycheck to bring your account within authorized limits. NMC reserves the right to collect any and all owed funds upon separation and will take all appropriate legal actions to do so. NMC allows employees to charge a maximum of $150.00 on their accounts receivable for parts, services, etc.


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Paycheck Advances Due to abuses of this policy, no Payroll Advances will be allowed.

Time Off, FMLA, Military Leave and Other Leaves

Bereavement Leave Our full-time employees are eligible to receive up to three (3) days of unpaid bereavement leave in the event they miss regularly scheduled workdays due to the death or funeral of a member of the employee’s immediate family. Your immediate family includes your spouse, children, stepchildren, parents, grandparents, grandchildren, brother or sister, your spouse’s parents or any other relative permanently residing in the same household. An employee who is notified of a death in his or her immediate family while at work will be paid for the remainder of the scheduled hours that day. The three-day eligibility for unpaid bereavement leave will not commence until the next regularly scheduled workday. All time off in connection with the death of one of the above-listed individuals should be scheduled with your Department Manager.

Personal Medical Leave Personal Medical leave applies to employees who are not eligible for FMLA due to part time status and or have not yet completed one year of service per FMLA guidelines. Any leave that qualifies as FMLA (see definitions below) must be used as FMLA and additional leave policies including this personal leave of absence cannot be added on in conjunction with FMLA. After an employee has completed the ninety (90) day trial period, he or she is eligible, subject to management approval, for up to four (4) weeks of unpaid leave of absence for medical reasons. Medical reasons may include illness, injury, medical and surgical procedures, pregnancy, childbirth and related medical procedures. A statement, acceptable to the Dealership, from your physician indicating that you are unable to perform your job and the probable duration of the leave is required prior to the start of your leave. You must provide at least 30 days advance notice to the business office of your need for leave, or in the case of an unforeseen circumstance in which 30 days advance notice is not possible, you must provide as much advance notice as possible. You may also be required to provide periodic verification by your physician of your continuing inability to work. If the duration of your leave exceeds the estimate, you must provide verification from your physician including a revised anticipated date of return.

Employees who are granted a medical of absence during their first 12 months of employment may return to their regular job if it is available. If it is not available, we will attempt to place the employee in a similar fob for which he or she is deemed by management to be qualified, if such a job is available. If no jobs are available at the time, we will give the employee consideration for any position for which he or she applies and is deemed by management to be qualified. A returning employee will be considered for such position for a 30-day period following his/her notifying the Dealership in writing that he/she is ready to return to work. If the employee does not return within this 30-day period, he/she will be terminated. Medical insurance may be continued during the leave according with the Plan Document and COBRA.

Family Medical Leave Act (FMLA) Under the federal Family and Medical Leave Act of 1993, as amended (FMLA), an employee may be eligible for a period of job-protected unpaid leave if you meet the criteria set forth in the FMLA. This


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Policy provides a brief overview of the statutory criteria as well as Norfolk Motor Company’s own policies regarding FMLA Leave. FMLA General Eligibility To qualify for FMLA Leave under this Policy, an employee must be an employee of Norfolk Motor Company, must have worked at Norfolk Motor Company for at least 12 months, must have worked at least 1,250 hours during the past 12 months, and must work at a location where Norfolk Motor Company employs at least 50 employees within 75 miles. Basic FMLA Leave and Active Duty Leave An employee may be eligible for up to 12 weeks of unpaid leave in a rolling backward 12 month period for the following reasons:

The birth of a child and to care for such child or placement for adoption or foster care of a child;

To care for an immediate family member (spouse, child under 18 years old or 18 and over that is

incapable of self-care, or parent) with a serious health condition;

Because of a serious health condition which renders you unable to work; or

Because of any qualifying exigency arising out of the fact that your spouse, son (of any age),

daughter (of any age) or parent, defined as a covered military member, is on active duty (or has

been notified of an impending call or order to active duty) in the National Guard or Reserves or is

a retired member of the Armed Forces or Reserves and has been notified of an impending call or

order to active duty in support of a contingency operation.

Military Caregiver Leave An employee also may take Military Caregiver Leave to care for a spouse, son (of any age), daughter (of any age), parent or next of kin who is a current member of the Armed Forces, including the National Guard or Reserves, who is undergoing medical treatment, recuperation, or therapy, is otherwise in outpatient status, or is otherwise on the temporary disability retired list, for a serious injury or illness. A covered service member incurs a serious illness or injury for purposes of this paragraph when he or she is medically unfit to perform the duties of his or her office, grade, rank or rating. Eligible employees are entitled to a total of 26 weeks of unpaid Military Caregiver Leave during a single 12-month period. This single 12-month period begins on the first day an eligible employee takes Military Caregiver Leave and ends 12 months after that date. The leave entitlement described in this paragraph applies on a per-covered service member, per-injury basis. However, no more than 26 weeks of leave may be taken within a single 12-month period by any covered employee. Even in circumstances where an employee takes other leave covered by the federal FMLA under numbers 1-4 in the Basic FMLA Leave and Active Duty Leave section above, the combined leave shall not exceed 26 weeks during that 12-month period. Definitions A "serious health condition" referenced in numbers (2) and (3) of the Basic FMLA Leave and Active Duty Leave section above means an illness, injury, impairment, or physical or mental condition that involves:

in-patient care (i.e., an overnight stay) in a hospital or other medical care facility (including any

period of incapacity or any subsequent treatment in connection with such in-patient care);

a period of incapacity of more than three (3) consecutive full calendar days, and any subsequent

treatment or period of incapacity relating to the same condition that also involves (i) treatment two

(2) or more times by a health care provider or under the supervision of a health care provider

within 30 days of the start of the incapacity, or (ii) treatment by a health care provider on at least

one (1) occasion within seven (7) days of the start of the incapacity which results in a regimen of

continuing treatment under the supervision of a health care provider;


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any period of incapacity due to pregnancy, or for prenatal care;

any period of incapacity due to a chronic serious health condition requiring periodic visits of at

least twice a year for treatment by a health care provider;

a period of incapacity which is permanent or long-term due to a condition for which treatment may

not be effective, during which the employee (or family member) must be under the continuing

supervision of, but need not be receiving active treatment by, a health care provider; or

any period of absence to receive multiple treatments by a health care provider or under the

supervision of a health care provider, either for restorative surgery after an accident or other

injury, or for a condition that will likely result in a period of incapacity of more than three (3)

consecutive calendar days in the absence of medical intervention or treatment.

A “qualifying exigency” referenced in number (4) of the Basic FMLA Leave and Active Duty Leave section above refers to the following circumstances:

Short-notice deployment: to address issues arising when the notification of a call or order to

active duty is seven (7) days or less;

Military events and related activities: to attend official military events or family assistance

programs or briefings;

Childcare and school activities: for qualifying childcare and school related reasons for a child,

legal ward or stepchild of a covered military member;

Financial and legal arrangements: to make or update financial or legal affairs to address the

absence of a covered military member

Counseling: to attend counseling provided by someone other than a health care provider for

oneself, for the covered military member, or child, legal ward, or stepchild of the covered military

member;

Rest and recuperation: to spend up to five (5) days for each period in which a covered military

member is on a short-term rest leave during a period of deployment;

Post-deployment activities: to attend official ceremonies or programs sponsored by the military

for up to 90 days after a covered military member’s active duty terminates or to address issues

arising from the death of a covered military member while on active duty;

Additional activities: for other events where Norfolk Motor Company and the employee agree on

the time and duration of the leave.

When Spouses Work Together A husband and wife, when both are eligible for FMLA and both work at Norfolk Motor Company, are eligible for a combined 12 weeks of unpaid leave for the birth or placement of a child or to care for a parent who has a serious health condition. A husband and wife will be eligible for a combined 26 weeks of unpaid Military Caregiver Leave as discussed above. If the husband or wife taking Military Caregiver Leave also takes leave for the birth or placement of a child or to care for a parent who has a serious health condition, that leave also may count toward the 26 weeks of combined Military Caregiver Leave during a single 12-month period. Notice of Need for FMLA Leave If the leave is foreseeable (birth or placement, planned medical care, leave due to active duty of immediate family member), the employee must provide at least thirty (30) days advance notice. If circumstances prevent providing the thirty days advance notice, then the employee should provide as much notice as possible. If an employee fails to give the required notice for foreseeable leave with no reasonable excuse, the employee may be denied the taking of the leave until the employee provides adequate notice of need for


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the leave. Employees should make every reasonable effort to schedule medical treatments so as not to disrupt the ongoing operations of the department. Intermittent FMLA Leave Leave on an intermittent or reduced schedule basis may be available when medically necessary due to an employee’s serious health condition or an employee’s immediate family member's serious health condition. Intermittent or reduced schedule leave for the birth or placement of a child for adoption or foster care may be taken only with approval from Human Resource s. Military Caregiver Leave may be taken intermittently or on a reduced leave schedule when medically necessary. Employees taking intermittent leave must follow Norfolk Motor Company’s standard call-in procedures absent unusual circumstances. When calling in an employee must identify the leave as FMLA related for coding purposes. ‘ In some instances Norfolk Motor Company may transfer an employee on intermittent or reduced schedule leave to an alternate position for which the employee is qualified and which better accommodates periods of recurring leave. Documentation Supporting FMLA Leave Your reason for the leave must be covered under FMLA and you must provide a completed FMLA Certification of Health Care Provider Form supporting the need for the leave. A request for reasonable documentation of family relationship verifying the legitimacy of a FMLA Leave may also be required. The employee will have fifteen (15) days in which to return a completed Certification form following receipt of the form from Norfolk Motor Company. If the employee fails to provide timely certification after being required to do so, the employee may be denied the taking of the leave under FMLA. If the Certification form is incomplete or insufficient, an employee will be given written notification of the information needed and will have seven (7) days after receiving such written notice to provide the necessary information. If there is reason to doubt the validity of the medical certification, a second opinion, at the expense of Norfolk Motor Company, related to the health condition may be required. If the original certification and the second opinion differ, a third opinion, at the expense of Norfolk Motor Company, may be required. The opinion of the third health care provider, which Norfolk Motor Company and the employee jointly select, will be the final and binding decision. A request for Active Duty Leave must be supported by the Certification of Qualifying Exigency for Military Family Leave form as well as appropriate documentation, including the covered military member’s active duty orders. A request for Military Caregiver Leave must be supported by the Certification for Serious Injury or Illness of Covered Service member form as well as any necessary supporting documentation. Recertification Under certain circumstances as provided by law, including (but not limited to) situations in which the need or nature of the approved leave changes, Norfolk Motor Company may, in its sole discretion, require recertification of your serious health condition. Norfolk Motor Company may also request recertification every year in which FMLA Leave is taken for any serious health condition that lasts longer than one (1) year. In these situations, you will have fifteen (15) days in which to provide, at your expense, a completed Recertification form. Unpaid FMLA Leave Because hourly employees have the option of receiving their PTO pay in one lump sum before it is actually earned, all FMLA for hourly employees will be without pay unless that employee opted to hold onto their PTO to be paid out when requested. Salaried employees will continue to earn their salary for the number of weeks they are otherwise entitled to under the PTO policy, provided they have not exhausted their PTO prior to the FMLA leave. Any additional leave beyond the employees salaried PTO will be without pay.


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Benefits during FMLA Leave During the approved FMLA Leave, the employee’s coverage under Norfolk Motor Company benefits will continue, but if the employee goes without pay, the employee must pay their share of health, dental, and voluntary life insurance premiums (if applicable). Failure to Return from Leave If you take FMLA leave in excess of the weeks for which you are eligible or fail to return from leave as scheduled, you will not be assured a position with Norfolk Motor Company upon your return and may be subject to disciplinary action or we will have considered you to have abandoned your position and you will be terminated as a No Call No Show. Interaction with State Military Leave Laws Certain states require employers to provide greater or different job-protected leave to family members of persons in the military. When applicable, Norfolk Motor Company complies with all such military family leave laws. When leave provided under one of these laws is covered under the federal FMLA, it also shall count toward the employee's federal FMLA entitlement and as FMLA Leave under this Policy. These military family leave laws vary by state, and the employee should contact Human Resource s if you have questions about them.

Military Leave of Absence

A leave of absence will be granted to any employee who enters any branch of the United States armed forces. Benefits accrual for an employee serving on active duty longer than 30 consecutive days will be calculated in accordance with applicable federal laws.

The employee will be reinstated with full seniority to his or her former position or to a comparable position if application for re-employment is made within 90 calendar days from the date of an honorable discharge; release from active duty or the date of release from hospitalization following discharge.

Any employee who is a member of a reserve component of the armed forces will be placed on unpaid leave for his or her annual two-week training duty. Benefit programs will be unaffected by the leave, and, if applicable, employee may elect to use any PTO pay for the absence. Training leaves will not normally exceed two weeks per year, plus reasonable travel time.

Employees must provide their supervisor with a copy of active duty/training orders at least 2 weeks prior to departure date.

Jury Duty All full-time employees who are requested to serve on jury duty will be paid for time served up to a maximum of 40 hours. Rate of pay will be based on your hourly/base rate or in the case of a commissioned or salary employee, the rate of pay will be based on your average pay from the previous calendar year. Employees will be required to show verification of pay received from the court system and reimbursement will be reduced accordingly. Employees are expected to return to work immediately following release from Jury Duty whether they are not selected or complete their required service.

Neutral Absence Control Policy No leave of absence, by itself or in combination with other periods of leave, may last longer than one hundred twenty (120) days. Any employee, who for any reason or combination of reasons misses a total of 120 days of work in a twelve-month period, will be separated from employment due to unavailability for


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work. Exceptions will be made for documented Military Leave or other documented leave that is in compliance with any State or Federal Law that extends a leave beyond the 120 day NMC limit

Holidays

The following holidays are reserved by NMC: New Year’s Day Labor Day Memorial Day Thanksgiving Day Independence Day Christmas Day Eligible employees for Holliday pay include: Hourly Employees; Flat Rate employees Holiday Pay is not an extra benefit and is only in place to eligible employees (outlined below) who lose money due to being unable to work on a holiday that we are otherwise closed. If schedules are adjusted to add in an extra day in place of the Holiday, then Holiday Pay will not be applicable. For example, if a department has employees who rotate working on Saturdays and if a holiday was on a Saturday, then only those eligible employees who were scheduled on that Holiday Saturday would receive Holiday Pay. If a Holiday falls on a Sunday when the dealership is closed, no Holiday Pay will be paid out. Employees must be employed 90 days and working full time to receive holiday pay. Employees must work their scheduled day before and scheduled day after the holiday in order to be eligible for holiday pay. Scheduled day includes days in which an employee is expected to be working and does not include PTO days which remove the employee from the schedule. For eligible employees who work 30 to 39 hours per week, Holiday Pay is paid at 6 hours. For employees who work 40 hours or more per week, Holiday Pay is paid at 8 hours. If a holiday falls on a day your department or the Dealership is normally closed, the day observed, if any, will be announced in advance. Customer requirements and expanded level of services may necessitate departments to remain open on any or all of the above days. If and when that is the case, the departmental managers will explain the compensation to hourly workers. Salaried or commissioned employees are on duty as determined by management and as business demands require.

Paid Time Off Revised Policy Effective January 1, 2014 All full-time employees will receive paid Paid-Time-Off (PTO) as indicated below. Paid Time Off (PTO) is not an earned wage rather it is a mere gratuity. PTO accrues as follows: 5 days after 1 year of service 10 days per year on 2

nd anniversary through 4

th anniversary

12 days per year on 5th

anniversary through 9th

anniversary 18 days per year after 10 years of service


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Hourly Employees: PTO is paid out to employees who work 30 or more hours per week. Employees who are scheduled from 30 to 39 hours per week receive their hourly PTO paid at 6 hours per day – or a total of 30 hours of PTO constitutes a week. Hourly Employees who work 40 or more hours per week receive 8 hours of PTO per day. Hourly employees can receive PTO in increments of half days (4 hours or 3 hours, as applicable). Commissioned Employees PTO will be calculated based on the past 12 months of earnings. As such, employees who are approaching their first year of service will be paid out PTO on the month following the completion of 12 full months. PTO will be paid out to at the employees request and can be used as Paid Time off in increments of 4 hours not to exceed the employee’s available balance. PTO can be received as payment in lieu of time off at the employee’s request or a combination of pay for actual time off and payment in lieu of time off.

PTO requests will not be paid outside of the normal payroll cycle, and PTO that is requested as payment in Lieu of being paid for time off, will be paid on the next payroll cycle. All PTO requests whether used for time off or payment in lieu of time off must be submitted to your manager using the provided form. Your manager will approve the request and it will be verified against your balance and then provided to payroll for payment as requested. Employees who held onto PTO and wished to have it paid out between November 1 and December 15 will be considered on a first-come First Served basis. Only a limited amount of PTO in lieu of time off will be paid during this period of time.

Any time off requested from a manager that is approved where a balance is not available will occur without pay being assigned and may be subject to the Attendance Policy.

PTO will automatically be used for an otherwise unscheduled absence (i.e. calling in sick) result in that absence being considered “scheduled” and therefore not subject to the NGMAC attendance policy as an Unscheduled Absence. If no PTO balance exists then that day will occur without any pay and will then be subject to the attendance policy.

Existing PTO that is on the books will be assigned to any absence that is coded FMLA until such balance is exhausted. FMLA will continue as required without pay once PTO balance has been exhausted.

PTO does not carry over into subsequent anniversary periods. Any unused PTO that is still on the books at the time of an employee’s anniversary will be paid out on the paycheck immediately prior to the employee’s next anniversary.

All requests for time off must still have approval by that manager regardless of whether the employee has PTO available or not.

Employees who are discharged for cause or who leave without providing the dealership with two-weeks written notice, will not receive payout of PTO that remains on the books.

Employees who are laid off or who provide two weeks written notice prior to resigning from the dealership will receive any PTO that remains on the books paid on their last check.


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PTO balances will be provided to the employee periodically along with their paychecks to enable the employee to better track their time off.

Hours assigned as PTO to an employee’s paycheck do not subject an employee to Overtime as those are paid hours but not worked hours. OT is payable only for worked hours. Exempt Employees (i.e. Managers and any employee whose pay is associated with store or department goals as opposed to personal goals).

Salaried employees are paid to accomplish certain tasks and therefore their actual “work time” is not tracked. Because of this, PTO is coded a salaried employee’s paycheck in increments of full days (8 hours).

Individual days off (sick days, or other unscheduled or scheduled days) up to two days in a week that are planned off or adjusted for during a week by the manager ensuring that the work is complete, (working from home, delegation, staying late or coming in on other days off to accomplish such tasks) are not subject to PTO assignment as long as that person’s direct manager agrees that the work load was completed during that week.

Unscheduled absences or scheduled absences that exceed two days off are subject to the assignment of PTO to all days off for balance tracking purposes, and such days will count against the manager’s PTO balance for the period.

Salaried employees who exhaust their PTO balance during the evaluation period will have their pay adjusted for additional time that is taken off in excess of their PTO.

PTO cannot be received as payment in lieu of time off for salaried employees.

All PTO requests whether used for time off or payment in lieu of time off must be submitted to your manager using the provided form. Your manager will approve the request and it will be verified against your balance and then provided to payroll for payment as requested.

PTO does not carry over into subsequent anniversary periods. Any unused PTO that is still on the books at the time of a Salaried Exempt anniversary will become null and void and the new balance will be put into the tracking system.

Salaried employees do not receive the payment of any unused PTO that remains on the books upon their departure from the dealership.

PTO balances will be provided to the employee periodically along with their paychecks to enable the employee to better track their time off.

Existing PTO that is on the books will be assigned to any absence that is coded FMLA until such balance is exhausted. FMLA will continue, as required, without pay once PTO balance has been exhausted.

Tracking: All PTO will be tracked by HR. In order for accurate tracking, an HR Signature is required on the PTO request before it will be paid out by payroll.

Happy Birthday Effective January 1, 2014, FT employees who have worked a minimum of 180 days are eligible to receive their birthday as a paid day off paid at the rate of $7.25 per hour. Employees who work 30-39 will be paid at 6 hours and those who work 40 hours will be paid 8 hours. Full Time Employees who have been employed 1 or more years will receive their birthday or a replacement day off at their normal PTO rate as calculated (hourly or commissioned, 6 or 8 hours).


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Pre-approval from your manager is needed to take any time off and if business needs do not allow you to have your actual birthday off, a substitute day can be taken but must be taken within 30 days of your birthday.

Birthday Pay will automatically be added to your paycheck on the pay period in which your birthday occurs regardless of what day you negotiate to have off with your manager.

GIVE A DAY BACK TO CHARITY Because NMC places such a high value on Community Citizenship, we allow our FT employees to take one day off with pay per year to do volunteer work under the following guidelines.

1. The day off must be pre-approved with at least 2 weeks advanced notice.

2. Volunteer work must be done on behalf of a recognized Charitable Organization.

3. A signed document on organization letterhead must be provided documenting the date and hours

of work performed.

4. Whenever possible, employee must wear an NGMAC Shirt and must represent the dealership

while volunteering.

5. NMC will pay the employee the hourly equivalent to the hours of volunteer work performed not to

exceed 8 hours in any year.

Insurance and Other Benefits

Medical and Dental Insurance Coverage NMC participates in group health and dental insurance coverage that is available to full-time employees. Employees are eligible for coverage the first day of the month after they have been employed 60 days. Sign up takes place during the initial hiring process and the payroll administrator will submit the paperwork at the appropriate time. If you do not sign up in the within that first 60 days of hire, you must wait until open enrollment in conducted. Open enrollment will take place during the month of January for a February effective date. Changes in Coverage Other than during initial enrollment or open enrollment, employees can only add, drop or make changes to insurance coverage if they are affected by a life event change that has a direct impact on their insurance coverage needs.

Some examples of changes that you may make include:

Change the number of people covered under your plans

Enroll in or discontinue your coverage

Begin a new / change an existing Medical or Dependent Care Flexible Spending Account

Qualifying Events A life event change, also called a qualifying event, is a personal change in status which may allow you to change your benefit elections. Examples of some qualifying events include, but are not limited to, the following:


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1. Change in legal marital status – marriage, divorce, legal separation, annulment, or death of a spouse

2. Change in number of dependents – birth, death, adoption, placement for adoption, award of legal guardianship

3. Change in employment status of the employee’s spouse or employee’s dependent – switching from part-time to full-time employment status or from full-time to part-time, termination or commencement of employment, a strike or lockout, commencement of or return from an unpaid leave of absence which results in employee/dependent becoming ineligible for coverage

4. Dependent satisfies or ceases to satisfy eligibility requirement – marriage of a dependent or change in student status

If you experience a qualifying event, you will need request a change to your benefits within 30 calendar days of the event and provide required documentation. If you do not request the change within 30 calendar days, the next opportunity you will have to make changes to your benefits will be during the next open enrollment period.

An explanation of coverage is available from the Office Manager or Human Resource Manager. Please consult your insurance plan booklet for full details concerning participation and coverage, as well as for instructions on filing claims. 2010 Healthcare Reform Information: Individuals whose coverage ended, or who were denied coverage (or were not eligible for coverage), because the availability of dependent coverage of children ended before attainment of age 26 are eligible to enroll in NMC’s Group Insurance. Individuals may request enrollment for such children for 30 days from the date of eligibility. Enrollment will be effective retroactively to the beginning of insurance coverage. The lifetime limit on the dollar value of benefits under our Health Care Insurance Provider no longer applies. Individuals whose coverage ended by reason of reaching a lifetime limit under the plan are eligible to enroll in the plan. Individuals have 30 days from the date of this notice to request enrollment. For more information, talk to the Office Manager or Human Resource Manager.

C.O.B.R.A. Consolidated Omnibus Budget Reconciliation Act On April 7, 1986, a federal law known as “COBRA” was enacted requiring that most employers sponsoring group health plans of employees and their families the opportunity for a temporary extension of health coverage (called “continuation coverage”) at group rates in certain instances where coverage under the plan would otherwise end. This notice is intended to inform you, in a summary fashion, of your rights and obligations under the continuation coverage provisions of the law. If you are an employee of the Norfolk Motor Company, covered by the Dealership’s medical insurance plan, you have the right to choose continuation coverage if you lose your group health coverage because of the loss of a job. Your eligible dependents may also have the right to elect and pay for continuation coverage for a temporary period in certain circumstances where their coverage under the plan would otherwise end. If you have any questions concerning your rights under COBRA, please contact the Office Manager or Human Resource Manager for details.

401K Plans

The Dealership offers a 401K Savings Plan through Alerus Financial to all full-time employees age 21 or older on the beginning of the calendar quarter following completion of one year of service, provided the employee worked a minimum of 1000 hours during that year. The Plan Document controls the terms and


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conditions of the 401K Savings Plans. Casey Knake, our plan administrator will review details of the plan with you when you become eligible.

IRS Section 125- Cafeteria Plan We are able to offer employees the ability to pay for their insurance with “before tax” dollars rather than “after tax” dollars. This is a federally controlled act and is in effect for each period year. As you become eligible for these benefits and you elect to cover your family, you will become a plan participant of the “Section 125” Cafeteria Plan. The Plan Document controls the terms and conditions.

Life Insurance Optional Life- Accident- Emergency Care Insurance Subject to acceptance by our insurance carrier, we offer supplemental insurance benefits such as but not limited to: disability insurance, life, cancer, and accident coverage for our full-time employees, beginning on the first day of the month after completion of your 90-day introductory period. The employee is responsible for the entire cost of this insurance.

Social Security Insurance The Federal Insurance Contributions Act, which is better known as the Social Security Act, requires the Dealership to deduct a percentage of your pay, match it with an equal amount from the Dealership and send it to the government to be deposited in your social security account. If you are not familiar with the retirement and disability benefits provided under Social Security, check with your local Social Security office for a more complete explanation.

Training and Educational Assistance NMC, working with its manufacturers, provides periodic training courses for employees. In addition, full-time employees may be given the opportunity to attend training programs that will enable them to improve their skills and qualify for advancement. Service technicians should consult the service manager for information on the rate of pay for time spent attending an approved training course. This rate is subject to change without notice. When participating in training at our request, expenses for meals, lodging, and travel will be reimbursed and overtime may apply. Training benefits both the employee and the Dealership, but most of all it benefits our customers. Membership in professional organizations wherein the employee receives benefits that can be directly applied to improving job performance may be reimbursed by NMC, at its sole discretion, providing the employee participates in the organization and receives prior authorization for the reimbursement from their manager.

Uniforms Where uniforms are required, they will be leased to the employee and the dealership provided on a shared cost basis as a payroll deduction both for the lease of and laundering of the uniform. Wearing your uniform properly and in its entirety is part of your job responsibility. Your manager will provide you with any additional dress and grooming requirements for your job. Upon separation from the dealership, all uniforms must be returned prior to receiving your final paycheck.


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Employee Discounts

Employee Vehicle Purchase Plan – Amended 2/19/2015

The purpose of the Purchase Plan is to provide all employees of Norfolk Motor Company and Columbus Motor Company with an added benefit rewarding their dedication. That benefit is the ability to purchase a new or used vehicle at a fixed amount less than customers can buy that same vehicle in a fair, predictable and uniform process for the employee. Covered Individuals The Employee Vehicle Purchase plan applies to employees, their spouses and their children only. Eligibility This benefit is available to both full time and part time employees who have passed their 60 day probationary period.

New Vehicle Purchases Employees can purchase a new vehicle for dealership cost plus $250.00. Please ask a sales manager to help identify any additional discounts you are eligible for, along with any restrictions that may apply. If the vehicle is specifically purchased for the employee (i.e. auction, dealer trade, etc.) the employee is responsible for all extra costs associated with obtaining that vehicle. New vehicle purchase policy is only effective for the dealership where the employee actually works and is not applicable at the other store (i.e. NMC employees can only purchase new vehicles at NMC, CMC can only purchase new vehicles at CMC). Used Vehicle Purchase Unlike the New Purchase benefit, the Used Vehicle Purchase benefit is applicable to any NMC employee or CMC employee at either of the two dealerships. A discount of 15%, up to a maximum of $650, is deducted from the best price (the price on the hangtag in the vehicle) except for Pre-auction and wholesale units. These are units we have elected not to fix or market, due to known problems or conditions, and are re-priced in preparation for the auction or wholesale buyer. These units will be designated on the Best Price Tag and no discount or return policy will apply. These units are sold “AS IS” and will not be returnable. We offer a 5-day return policy on all other used units. These will carry one of the three warranties:

GM Certified Warranty;

1 month/1,500 Mile Limited Power Train Warranty or

AS-IS/ No Warranty

The warranty is specified on the Buyer Guide, posted on the used vehicle’s window. As an employee, the return policy and any applicable warranties apply to all eligible vehicles, along with the applicable discount. Used vehicles, purchased before reconditioning, may be purchased for ER (Estimated Retail), less employee discount and less the amount estimated for reconditioning. Any vehicle purchased in this manner is sold “AS-IS” with no return or warranty policy. If the vehicle is specifically purchased for the employee (i.e. auction, dealer trade, etc.) the employee is responsible for all extra costs associated with obtaining that vehicle. Trade Allowance If you have a vehicle to trade, a new or used car manager will appraise it and determine, through a thorough process, the MCRV (Manager’s Current Replacement Value) of your trade in. The MCRV is the amount of money we estimate we could buy that vehicle for at an auction, including fees, transportation,


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reconditioning etc. After establishing the MCRV, the ER (estimated retail) will be determined and that is most likely what the vehicle will initially be priced at. Employee Money Back If your trade sells at retail, you will receive all funds remaining after the store receives the first $650.00 in profit For example: We allow you $5000.00 for your trade-in. We have an additional $450.00 in reconditioning expense to prepare it for sale thereby establishing a vehicle cost of $5450.00. We sell the trade two weeks later for $6690.00. We than would subtract $5450.00 from $6690.00 (6690-5450) =$1240.00. Than we would subtract $650.00 from $1240.00 (1240-650) = $590.00. After the 5-day return policy is completed, we would issue you a check for $590.00. The purpose of this process is to treat you as fairly as possible relative to your trade-in, thus why we pay an overage after a limited profit determination. We can’t guarantee that the ER will remain at that level at all times. If your trade-in ages on the lot and isn’t sold, we may elect to lower the price or possibly need to wholesale it at auction. In any case, you have no financial responsibility if we are forced to sell your trade-in at a lower price, even if we lose money. Policy Clarification: The dealership will retain $650 per trade regardless of the number of traded vehicles because the $650 per vehicle is required to pay all of the costs associated with our responsibilities to owning, selling, reconditioning, paperwork, cleaning, and selling each vehicle. The Dealership 5 day and 30 day return policies do not apply to employee purchases.

Finance Products The finance rate on a vehicle purchase will be at the rate the lending institution charges our Dealership for that specific deal (buy rate). This rate varies due to market conditions, credit worthiness, trade equity and down payment and should usually result in additional savings from a regular customer with similar circumstances. If you elect a Service Contract/Mechanical Protection, you will be charged Dealership cost Once again all other Service Contracts offered by NMC or CMC will be able to be purchased at our cost.

Employee Relative Purchase As previously stated, you the employee, your spouse and any children are eligible for the above mentioned discounts and processes. We would also offer relatives of yours a smaller discount to reward their support. Covered Individuals: Our definition of employee relatives, other than those eligible for the above program is: Parents, siblings, and their spouses, grandparents and grandchildren. Discount: The above individuals are eligible for 50% of the employee discount if they purchase at NMC or CMC. That means $250.00 off our best price on a new vehicle and a discount of 7.5% up to a maximum of $325.00 off our best price on a used vehicle. They remain eligible for our return policy and any warranties if applicable along with any factory rebates not included in our best price, as displayed in on the window tag. They are not eligible for any other programs, such as employee money back or finance products. Each relative is limited to one vehicle per year, unless trading in that vehicle which then doesn’t count against the one unit purchase limit. Eligibility is determined by who will be listed on the title. The employee must accompany the relative when purchasing the vehicle.

Employee Parts and Service Discounts The discounts stated below are available to all NMC employees who have 90 or more days of employment with our Dealership. These discounts are only available for our employees and their immediate families (spouse and children) and not for resale. These discounts are not available when any


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third parties, including insurance companies, are paying for the service or part. Under no circumstance may these discounts be used for personal profit or in competition with NMC. Parts All parts will be priced at Dealership cost plus 10%. Service NMC provides a discount on repair work of 35% off published labor rates done on our employee’s vehicles (including their immediate family as defined above). A repair order must be issued and approved by the manager of that department. Appearance The fee schedule applies to all employees and can be obtained from the Cashier. Once again, our intent at NMC is to provide a fair process that allows you the employee added benefit from the general public. We believe this program meets and exceeds our intent.

Section III: Employee Conduct & Responsibilities Employee Conduct Expectations There are obvious forms of conduct that are clearly unacceptable. These include, but are not limited to: theft, unauthorized possession or use of NMC owned property or personal property of other; falsification, omission or misrepresentation of material information, physical, verbal or other conduct offensive or harmful to other employees and less than acceptable productivity, attendance, punctuality or attentiveness to the job; failure to follow instruction or operating procedures, safety guidelines, insubordination or general disregard for authority. Vulgar, derogatory, disrespectful or obscene language will not be tolerated.

Insubordination We all have duties to perform and everyone, including your Department Manager, must follow directions from someone. It is against our policy for an employee to refuse to follow the directions of a Department Manager or management official or to treat a Department Manager or management official in an insubordinate manner in any respect. Employees must fully cooperate with the Dealership investigations into potential misconduct. Refusal to fully disclose information in the course of a Dealership investigation is insubordination and will not be tolerated.

Absenteeism and Tardiness Each of our employees plays an important role in getting a day’s work done. Attendance is expected and required. Attendance means that when the workweek starts, you are at your workstation, ready and prepared to start the day. Planned absences from work, whatever the reason, require as much advance notice as possible. When unexpected absences occur, you are expected to report to your manager as soon as possible before the start of your scheduled shift on the first day plus every day you are not able to work thereafter. It is unacceptable to leave messages with someone other than your direct supervisor. Norfolk Motor Company will also provide employees with a detailed attendance policy that clearly outlines expectations for attendance and our process for holding employees accountable.


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Appearance and Dress Code NMC is a customer focused professional business. You are part of it. The appearance we demonstrate to our customers and each other must always reinforce our professionalism. Distracting, bizarre, and unsafe appearance or dress is not acceptable. This includes, but is not limited to, facial jewelry, hair length that is a risk which working with a particular department’s equipment and any element of appearance or behavior that is determined to be offensive. The judgment of the Dealership is final in this matter, and, as a condition of employment, is agreed to by the employee. Dress codes are specific to each department and may be provided as a separate document for review and acknowledgement. Hygiene

Hygiene is a matter of common sense, self-pride, and an awareness of how our cleanliness impacts others around us. Due to working in close proximity with co-workers and with customers, we expect our employees follow simple standards of hygiene that are acceptable in our society. These standards include but not limited to frequent showering, brushing teeth, wearing clean clothing, use of deodorant, frequent hand washing, and other steps to ensure that there are no cleanliness or odor issues that are otherwise controllable in the workplace. Complaints about an employee’s hygiene will be addressed with coaching and continued concerns can result in corrective action up to and including separation.

Confidentiality All records and files of the Dealership are property of the Dealership and considered confidential. No employee is authorized to copy or disclose any file or record. Confidential information includes all letters or any other information concerning transactions with customers, customer lists, payroll or personnel records of past or present employees, financial records of the Dealership, all records pertaining to purchases from vendors or suppliers, correspondence and agreements with manufacturers or distributors and documents concerning operating procedures of the Dealership. All telephone calls, letters, or other requests for information about current or former employees should be immediately directed to the Office Manager or the Executive Manager. Any document that contains confidential information including but not limited to names, phone numbers, credit information, social security numbers, bank information, earning information, etc. must be handled in such a way to ensure that the information is protected. If a document, slip, note, copy, etc. is no longer needed it must be shredded.

Detrimental Activity Employees are not permitted to engage in any kind of activity, either on NMC property or while off the job, which reflects detrimentally or adversely on the Dealership’s reputation.

Documentation To help our customers and ourselves, all business transactions between employees of NMC and our customers must be accomplished by written orders. Using and keeping these records accurate is very important. If your position requires negotiations of payment of goods and services, you, personally, will be responsible for securing the appropriate signed documents. Verbal commitments on the part of any employee, without any written supporting documents, inevitably create misunderstandings. Documentation at the time take a few seconds prevents problems, and saves hours of additional work.


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Fraud, Dishonesty and False Statements Our credibility with our customers is the most important element of our relationship. Misrepresentation to a customer is against Dealership policy and is against the law. The law provides that an employee is personally liable. It is also against Dealership policy to mislead or misrepresent any credit application or customer credit status to any financial institution. Employees are also expected to be honest in their dealing with their Department Manager and co-workers. No employee or applicant may ever falsify any application, medical history record, invoice, paperwork, timesheet, time card, investigative questionnaires or any other document. Nor may any other employee fraudulently report customer or warranty repairs or use the employee discount for friends or relatives or for personal gain. Any employee found to have engaged in résumé’ fraud or who made material misrepresentations or omissions on their employment application will be subject to immediate termination of employment. If you observe any such violations, please report them to the Executive Manager immediately.

Gifts and Gratuities Employees may not request or accept any gift or gratuity of any kind from customer or supplier without the express, written authorization of the Executive Manager.

Housekeeping Employees are responsible for maintaining their own work areas in a presentable manner. At the close of each business day, ensure that all equipment is cleaned and put away; all stationary and miscellaneous supplies should be removed from benches/furniture tops. No paperwork may be left out overnight. Employees will not litter or discard such items as cigarettes or wrappers on the premises. Remember, we want our customers to look at us a professional, neat organization. Work areas must be maintained in a clean, healthy, orderly fashion to prevent unsafe conditions and potential accidents. Tools and equipment should be properly stored when not in use, and all floor areas must be kept free of grease, oil and other substances to prevent falls. If you observe conditions or equipment that are potentially dangerous, report them immediately to your Department Manager. It is each employee’s responsibility to make sure the work area is clean and orderly at the completion of his or her scheduled work shift.

Parking So that we will have sufficient, convenient parking for our customers, we require all of our employees to park their vehicles in the area designated for employee parking. If you have any questions as to where you should park your vehicle, please ask your Department Manager.

Personal Mail All mail that is delivered to NMC is presumed to be related to our business. Mail sent to you at the Dealership will be opened by office personnel and routed to your department. If you do not wish to have your correspondence handled in this manner, please have it delivered at home.

Personal Property Personal property including personally owned work tools are your responsibility. Personal toolboxes should be kept locked while unattended. NMC insurance does not cover any loss of personal property.


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Publicity In the course of advertising, public relations or other similar conduct for business purposes, the Dealership may utilize media resources. The Dealership may use your photograph, picture, and/or voice transcription for promotion or advertising at any time without compensation.

Sleeping Employees must be fully alert while on the job in order to protect the safety of all employees and to properly serve our customers. Therefore, we cannot tolerate sleeping or inattention on the job.

Smoking Smoking or use of chewing tobacco is not allowed in the presence of customers or in Dealership owned and customer owned vehicles. Smoking is allowed in designated areas only. Smoking or chewing tobacco in the presence of others may be offensive, please be considerate. Consult management regarding designated areas.

Telephone Usage Telephone usage must be restricted to business purposes. When personal calls are required, limit the conversation. All long distance calls are tracked regarding destination and caller.

Theft Our society has laws against theft and so do we. To protect you, your co-workers and NMC we reserve the right to inspect all purses, briefcases, packages, toolboxes, lockers and vehicles on the Dealership’s property. If you must remove Dealership property from the premises, you must obtain written permission in advance from your Department Manager.

Time Keeping Procedures Unless otherwise notified, each employee is required to record his or her time through use of the time clock. Accurately recording all of your time is required in order to be sure that you are paid for all hours worked as required by the wage and hours laws. You will be informed your first day on the job whether you are required to keep your time by a time clock. You and your Department Manager must initial any changes or corrections to your time clock record. Under no circumstances may any employee log time on another employee’s time clock.

Tools Technicians supplying their own basic tools are asked to secure them by keeping their toolboxes locked when not in use. NMC insurance may not cover the loss of your personal tools. NMC is not responsible for the safety and security of the personal tools you bring to work. Tools belonging to NMC should be similarly secured when not in use. NMC tools are not to be removed from the service department under any circumstances.


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Unauthorized Interviews As a means of protecting yourself and the Dealership, no unauthorized interviews are permitted to by conducted by individuals representing themselves as attorneys, peace officers, investigators, reporters, or someone who wants to “ask a few questions”. If you are asked questions about the Dealership or its current or former employees, you are to refer that individual(s) to your Department Manager. A decision will then be made as to whether that individual may conduct any interview and they will be introduced to you by your Department Manager with a reason for the questioning. Similarly, if you are aware that an unauthorized interview is occurring at the Dealership, immediately notify the Office Manager or the Executive Manager.

Business Travel Policy

NMC Employees may be requested or required to travel as a part of their job or for mandatory training and meetings. When traveling for dealership business the following guidelines apply: NMC will reimburse or allow purchase of the following travel related expenses on the company purchase card:

Airline Tickets

Vehicle Fuel

Additional baggage or travel related charges

Meals while traveling

Laundry charges for any person required to travel for more than 5 consecutive days

All dealership travel will be done in a dealership vehicle and all company owned vehicle rules

apply.

The following items will not be reimbursed while traveling:

Purchase of personal items forgotten while traveling (i.e. clothing, personal hygiene).

Purchase of alcohol except as it may accompany a meal with express permission of the

Executive Manager/Dealer.

Entertainment expenses except as allowed by the Executive Manager/Dealer.

Employees who travel are representing NMC at all times and all policies including but not limited to NMC Drug and Alcohol Free Workplace policy; Employee Conduct and Citizenship expectations, and standards of moral and ethical behavior outlined in this handbook or accepted as societal standards, are expected to be followed at all times while traveling on dealership business. Employees who travel for business purposes are expected to be productive in the dealership they are visiting or to work the same or longer hours as needed if there to assist with another dealership. Failure to represent the dealership well while traveling on dealership business will result in corrective action up to and including discharge.

Violence-Free and Weapons-Free Workplace Policy NMC has a zero tolerance for violent acts or threats of violence against our employees, applicants, customers or vendors. No employee should commit or threaten to commit any violent act against a co-worker, applicant, customer or vendor.


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Any employee who is subjected to or threatened with violence by co-worker, customer or vendor, or is aware of another individual who has been subjected to or threatened with violence, is to report this information to his/her Department Manager or managers as soon as possible.

Prohibited conduct includes, but is not limited to:

Injuring another person physically;

Engaging in behavior that creates a reasonable fear of injury to another person;

Engaging in behavior that subjects another individual to extreme emotional distress;

Possessing, brandishing, or using a weapon that is not required by the individual’s position while

on dealership premises or engaged in company business;

Intentionally damaging property;

Threatening to injure an individual or to damage property;

Committing injurious acts motivated by, or related to, domestic violence or sexual harassment;

Retaliating against any employee who, in good faith, reports a violation of this policy.

Please do not assume that any threat is not serious. Please bring all threats to our attentions so

that we can deal with them appropriately. All threats will be thoroughly investigated, and all

complaints that are reported to management will be treated with as much confidentiality as

possible.

Weapon-Free Environment

Employees may not, at any time while on any property owned, leased or controlled by NMC including anywhere that dealership business is conducted, use any weapon. Weapons include, but are not limited to, guns, knives or swords with blades over four inches in length, explosives, and any chemical whose purpose is to cause harm to another person.

Regardless of whether an employee possesses a concealed weapons permit or is allowed by law to possess a weapon, weapons are prohibited on any company property or in any location in which the employee represents the company for business purposes, including those listed above.

Employees who violate this policy will be subject to disciplinary actions, up to and including employment termination.

Web-Blogs and Online Communication Policy

An area of growing concern to many employers is the proliferation of online journals and web logs ("blogs"), through which employees publish information about workplace issues. NMC does not prevent employees from voicing their opinions on blogs or in any other format, provided that such employees exercise their reasonable judgment to prevent any harm to NMC, fellow employees, customers, future employees or vendors and community businesses that we work with. Employees must observe the following restrictions when discussing NMC, whether such discussions are published via websites, on blogs or otherwise.

Because our mission is to serve our customers and be a demonstration of responsible citizenship in our community, it is important that all employees refrain from any and all activities that could damage NMC’s reputation in the community. Before making any communications, employees should carefully consider whether such communications could be interpreted in such a way as to damage NMC’s reputation. At no time and under no circumstances should an employee state or imply that he or she is speaking on behalf of NMC without written permission of the Executive Manager/Dealer.


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All dealership policies with regard to confidentiality apply to online communications. That an employee is not physically present at NMC’s facilities or is not using dealership technology does not excuse any breach of confidentiality. Before publishing, uploading, or disseminates any information related to employment at NMC, employees should carefully consider whether such information is protected by NMC's confidentiality policy, state law, the Health Insurance Portability and Accountability Act of 1996 (HIPAA), the Gramm Leach Bliley Act of 1999 or any other Company policy or legal restriction.

Employees should seek guidance from the Executive Manager or Human Resource Manager if they have any doubt as to whether either of these restrictions applies in a given set of circumstances. When an employee chooses to publish information on a blog, website, or in any other format, such employee will be held responsible for the consequences.

Employees who reveal confidential information or damage NMC’s reputation through blogging or other communications are responsible for such conduct regardless of whether they do so anonymously. By accepting employment with NMC, all employees agree to cooperate in any company investigation of any violation of this policy, and to answer truthfully all company inquiries in the course of such an investigation. Discipline up to and including termination may result from any communication that could result in disclosure of any confidential information or that could damage the public reputation of NMC or our customers and vendors.

The restrictions set forth in this policy are not meant to nor should they be interpreted in any way to interfere with or restrict any employee's federal or state or federal labor law rights, any whistleblower protections, a citizen’s rights under the First Amendment to the United States Constitution, or equivalent federal, state or local law.

Harassment-Free Workplace/No Retaliation Policy We do not tolerate harassment of any of our employees, customers, vendors, or suppliers. Any form of harassment which violates federal, state or local law, including, but not limited to harassment related to an individual’s race, color, sex, national origin, citizenship, status, age, creed, ancestry, handicap or disability or sexual orientation is a violation of this policy and will be treated as a disciplinary matter. For these purposes the term “harassment”, includes slurs and any other offensive remarks, jokes, other verbal, graphic, or physical conduct.

Conduct prohibited by this policy is unacceptable whether in the workplace and in any work-related setting outside the workplace, such as during business trips, meetings and work-related social events, or dealership sponsored social events.

Sexual Harassment Definitions In addition to the above listed conduct, “sexual harassment can also include the following examples of unacceptable behavior:

Offering an employment benefit (such as a raise or promotion or assistance with one’s career) in

exchange for sexual favors, or threatening an employment detriment (such as termination,

demotion, or disciplinary action) for an employee’s failure to engage in sexual activity.

Visual conduct, such as leering, making sexual gestures, displaying of sexually suggestive

objects or pictures, cartoons or posters.

Verbal sexual advances, propositions or requests


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Verbal abuse of a sexual nature, graphic verbal commentaries about an individual’s body,

sexually degrading words used to describe an individual, suggestive or obscene letters, notes or

invitations

Physical conduct, such as touching, assault, impeding or blocking movements

Retaliation, which can include harassing behavior, is an adverse action one takes against another

person because that person complained of unlawful discrimination or harassment, or otherwise

engaged in legally-protected activity.

If you have any questions about what constitutes harassing behavior, ask your Manager, the Executive Manager/Dealer or the Human Resource Manager. Violation of this policy subjects an employee to disciplinary action, up to and including discharge.

Procedure for Reporting Harassment or Retaliation

Because Dealership policy is to provide a work environment free from discriminatory harassment and retaliation, you are to take immediate action if you feel you are the subject of this type of harassment or retaliation from any supervisor, manager, colleague, vendor, or other person you come in contact with as an employee. Any employee who believes that he or she has been subjected to harassment or retaliation in violation of this policy must take the following actions to ensure that NMC is aware of the situation:

1. If comfortable doing so, firmly confront the harasser and ask him or her to stop. If possible, have a witness present.

2. If the harassment or retaliation continues, or if the complainant is uncomfortable with the above, immediately report it to the Executive Manager/Dealer or Human Resource Manager who may request a written and signed record of the complaint.

All complaints will be investigated promptly. In investigating complaints, NMC will attempt to maintain confidentiality to the greatest degree possible. NMC encourages employees to report any incidents of harassment or retaliation and it assures you that no individual will suffer retaliation or reprisals as a result of reporting a complaint. Prompt, effective remedial action will be taken where appropriate, based on the results of the investigation. Any violation of this policy, including inappropriate actions or failure to act, may result in corrective action, up to and including termination.

Employees, who have questions about this policy, or about their responsibility, should discuss them with the Human Resource Manager. If management finds that an employee has violated our Dealership policy, appropriate disciplinary action will be taken, up to and including termination.

Conflicts of Interest It is our policy to forbid employees to deal in the buying or selling of automobiles in private transactions or engaging in any other business that competes with the Dealership. An employee may not buy or sell automotive parts or supplies in personal transactions with our customers and suppliers without our express written approval from the Executive Manager. Nor may any employees perform service repair work if such work conflicts with the proprietary interest of the Dealership. Also, Dealership policy forbids a financial interest in an outside concern, which does business with or is a competitor of the Dealership (except where such ownership consists of securities of a publicly owned corporation regularly traded on the public stock market). Rendering a directive, managerial, or consulting services to any outside concern that does business with or is a competitor of the Dealership, except with the knowledge and written consent of the Executive Manager of NMC is also prohibited. If you think that there is a possibility that you


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may have a conflict, it is your responsibility to notify the executive manager and obtain his/her approval in writing.

Relationships in the Workplace NMC permits family members and close friends to work together at our dealership unless a real or perceived conflict of interest occurs. Family members or those involved in a close personal relationship may not:

Supervise one another

Handle money transactions for one another

Approve money transactions for one another

Write repair orders for work to be done on personal vehicles

Be in a position to promote, terminate, give raises to, correct or hire family members.

Exceptions to this rule must be approved and documented by the Owner/Dealer.

Outside Employment There are occasions when an employee decides that he/she needs additional income outside of their primary position at the dealership. It is important that such outside interests do not interfere in any way with an employee’s primary job with NMC. An employee should be careful that extra hours of work do not affect the safe operation of his regular job by leaving him/her tired and slow to react. If your other job could create a potential conflict of interest, for example, working for a competitor, you are required to obtain written approval, in advance, from the Executive Manager.

Dealership Keys Each NMC employee to whom a key is given is responsible for proper use of that key and will be required to sign for it. A lost or misplaced key must be reported immediately to your Department Manager. Never duplicate or loan a key to anyone for any reason. See your Department Manager if you need another key. All keys must be turned in to your Department Manager upon separation from the Dealership, or your final paycheck may be withheld. Employees who take a leave of absence must turn in any keys or tools prior to beginning their leave. Any employee who is found to be accessing the dealership during days or hours that we are closed or that may otherwise be in violation of any policy shall have their key rights revoked and could be subject to corrective action up to and including separation.

Computer Use Policy All employees have a responsibility to use the NMC computer systems in an effective, efficient, ethical, and lawful manner.

The use of NMC computers is a privilege, not a right. All documents generated on the computer, including e-mail messages are the property of the Dealership and should be used for business purposes only. A supervisor must approve personal use. We reserve the right to review all information on any Dealership computer. Employees should be aware that no employee communication is private and that deleted material can be retrieved.


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When requested, employees will cooperate with managers in investigations of systems abuse and to report suspected abuse, especially any damage to or problems with Dealership files.

Cell Phone Use Policy Non work related cell phone use must be limited to break and meal periods and should not be conducted within the presence of a customer at any time. Cell phone use while working can be dangerous and distracting to our work. Business cell phones provided by NMC to employees who are required to drive as a part of their position and who may be contacted by cell phone when driving, must also be used in conjunction with a hands free device or headset which will be provided by NMC. Texting while driving is strictly prohibited.

No Audio/Video-Recording Policy

Constructive and open communications between employees at all levels is important to maintaining a constructive work environment. The recording of conversations tends to inhibit this free-flow of communication and disrupts NMC operations. To assure the clear communications and to prevent disruption in the workplace, NMC prohibits the recording, whether by tape or otherwise, of conversations between employees and their peers, including all members of the leadership team. This prohibition extends to conversations between employees at all levels, videos of mistakes or other situations at the expense of the persons involved, or anything saved to media representing the dealership without express authorization of the dealership.

The following are exceptions to NMC No Recording Policy.

The recording of customer phone calls or other calls that come in through our customer phone

systems for quality assurance, security, or training purposes.

The use of security cameras for security and safety assurance reasons.

The recording of Training Presentations for trainer development or to capture a training topic for

future use.

Company Purchases Many of our employees are given the authority to purchase items for the Dealership. No items can be ordered unless a purchase order has been completed and signed by an authorized person.

Drivers Licenses and Driving Records Any employee, who, as a part of his/her duties, needs to operate a Dealership owned, customer owned, or personally owned vehicle must hold a valid driver’s license and driving record must be reported to your supervisor. Our insurance company will independently verify all driving records.

Job Performance The personal contribution of each employee to CUSTOMER ENTHUSIASM, EMPLOYEE SATISFACTION, FINANCIAL PERFORMANCE, MARKET SHARE and ONGOING IMPROVEMENT is fundamental to the current and future success of the Dealership. Your personal performance in these


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areas is the most important aspect of your job. Individual employee evaluations and decisions regarding any change in the employee’s status; are based on the individual’s performance as it supports and contributes to the five areas above. Supervisors and employees are strongly encouraged to discuss job performance and goals on an informal, day-to-day basis. Additional formal performance evaluations are conducted to provide both supervisors and employees the opportunity to discuss job tasks, identify and correct weaknesses, encourage and recognize strengths, and discuss positive, purposeful approaches for meeting goals.

Meetings From time to time, individual or staff meetings may be held for the purpose of providing instruction training or counseling or to review Dealership operating policies. If such a meeting is called and includes your department or you individually, attendance is required.

Resignation and Termination Employees who choose to leave NMC are required to provide a minimum of two-week’s notice in order to be considered eligible for rehire. All notifications of resignation should be provided to your direct manager in writing. All NMC owned physical property (calculators, uniforms, keys, office supplies, organization trays, staplers, tape-dispensers, any company purchased paperclips, post it notes, technical manuals, special tools, cell phones and equipment, etc.) as well as electronic or other information including customer information files, etc. are returned at the time employment ends. The value of any such item not returned, or the cost of damage thereto may be deducted from your final pay. The balance of any debt owing NMC may be similarly deducted. Payment of commissions, incentives, and bonuses based on month-end or similar future information may be delayed until such calculation is made possible. Violations of the any policies outlined in this Handbook and unacceptable practices by employees are subject to disciplinary action up to and including termination. Any reason deemed sufficient by management may result in termination of employment.

Bridging Service

If an employee resigns by following the above two-week required notification and if that employee wishes to return to CMC and left while in good standing at the time of their resignation, that employee can return to the dealership and have their original hire date and all associated benefits and seniority restored to them as long as they are rehired within 60 days of having first resigned.

Section IV: Health, Safety and Security

General Safety Rules It is our policy to promote safety on the job. The health and well-being of our employees is foremost among our concerns. For this reason, you are urged to follow common sense safety practices and correct or report any unsafe condition, defective tool, or equipment to your Department Manager. Each employee shall be instructed regarding the Dealership’s injury prevention program. Each employee is expected to assist NMC in maintaining safe working conditions. Safety is a state of mind and requires constant vigilance and common sense. Safety is everyone’s responsibility. Remember: SAFETY FIRST.


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All accidents—including those that do not involve serious injury and those involving customers—must be reported immediately to your Department Manager. It is only through full knowledge of every accident that the Dealership can become safer, healthier place to work for everyone. General Safety Rules are considered minimum safety standards for usual work conditions and shall be adhered to by all who enter the specific job location. All personnel shall adhere to the following:

Participate in new employee training.

Participate in continuing education that is conducted on a departmental level.

Report all accidents, injuries, near misses or safety hazards in the workplace immediately to your

supervisor.

An accident form must be filled out for all accidents even those that do not require medical

attention.

Report faulty electrical equipment. Faulty electrical equipment will be removed from service until

the equipment has been repaired or replaced.

Report any dangerous facility situations or equipment to appropriate maintenance personnel.

Ask and insist on sufficient help before lifting heavy objects. Follow proper procedure when lifting-

bend knees and keep back erect, lift with weight close to the body and do not twist while lifting.

Use mechanical devise when needed.

Remember- No horseplay is allowed in the workplace.

Always wear your safety belt when driving any company-owned vehicle.

Use appropriate hands free devices while driving and using a cell phone.

Texting on a cell phone while driving is strictly prohibited.

Always wear your appropriate personal protective equipment in accordance with the job operation

that you are performing.

Participate in proper housekeeping. Proper housekeeping is mandatory for all departmental

areas.

At no time should any vehicle (personal, customer, or dealership) be driven on this lot in excess

of 15 MPH.

Vehicles driven inside the service area should not exceed 5 MPH.

Only authorized personnel may drive the snow plow, tractor, or 4-Wheeler. Authorized personnel

will be identified and documented. All others are strictly prohibited from driving any vehicle for

which they are not authorized or in a manner for which they are not authorized.

The Snow Plow Pick-up may be used by any employee authorized and insured to drive vehicles

owned by the dealership, but only those specifically authorized to operate the plow will be allowed

to utilize that mechanism or to clear snow.

The same maximum speed (15MPH) applies to the plow, 4-wheeler, and tractor.

If driving the 4-Wheeler, a helmet must be worn at all times. Failure to wear the helmet even once

will result in privileges for that vehicle being revoked.

Any person spinning cookies, popping “wheelies” or operating any vehicle in an intentionally

unsafe or reckless manner at any time will be discharged.

Any person involved in an accident that results in damage to property or any injury, will be sent

for a suspicion-based drug and alcohol test immediately following the incident and will be

suspended from work without pay pending the outcome of the drug screen.

Failure to practice these safety rules or rules specific to your department could result in disciplinary action or termination of employment.


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Searches and Inspections In order to protect the safety and property of all of our employees, the Dealership reserves the right to inspect employee’s lockers, toolboxes, desks, cabinets, as well as motor vehicles and any other personal belongings brought onto Dealership property. Employees are expected to cooperate in any search. All files and records stored on Dealership computers are the property of the Dealership and may be inspected at any time. Dealership computers are for business purposes only and should not be used for non-work related matters. Use of Dealership computers for unauthorized purposes is prohibited. Electronic mail and voice mail messages are to be used for business purposes only and are considered Dealership property. The Dealership may access these items at any time with or without prior notice and the employee should not assume that such messages are confidential.

Customer Safety

It is everyone’s responsibility to pay close attention to the safety and wellbeing of our customers. All employees are responsible for ensuring that our customer areas are always clean, dry and free from any hazards.. Should a customer be involved in an accident, a customer accident form must be filled out and should include a statement from all present witnesses.

Workers’ Compensation Insurance The Dealership pays the entire amount of the Workers’ Compensation insurance premium, which provides benefits to employees who experience injury or illness connected with employment. To be eligible for Workers’ Compensation benefits, the injury must be a direct result of the job. Federal law governs benefit entitlements, but it is essential that you report all work-related accidents, injuries and illnesses immediately to your manager. Claim forms must be filed by employer with the state within 10 days of injury. Claim forms are available from the Business Office. ‘ All employees with a worker’s compensation claim are subject to a drug and alcohol screen to be administered at the time of treatment and are also subject to the provisions of our drug free work place. Norfolk Motor Company actively polices all claims suspected to be fraudulent. Abuse of the Workers’ Compensation system can cause a severe negative economic effect to this Dealership and, in turn, your co-workers. We will pursue all available legal action against any employee found to have engaged in fraudulent conduct. Filing a false or fraudulent claim is also a violation of Dealership policy, and will result in disciplinary action, up to and including immediate termination.

Alcohol and Drug Free Workplace Policy Alcohol and drug abuse ranks as one of the major health problems in the United States. Our employees are our most valuable resource, and their safety and health is or paramount concern. We are committed to providing a safe working environment to protect our employees and others; to provide the highest level of service; and to minimize the risk of accidents and injuries. Each NMC employee has a responsibility to co-workers and the public to deliver services in a safe and conscientious manner. Continuing research and practical experience have proven that even limited quantities of narcotics, abused prescription drugs or alcohol can impair your reflexes and judgment. The impairment, even when not readily apparent, can have catastrophic results. For these reasons, we have adopted a policy that all employees must report to work completely free from the presence of drugs and the effects of alcohol.


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Drug Use/ Distribution/ Possession/ Impairment All employees are prohibited from manufacturing, cultivating, distributing, dispensing, possessing or using illegal drugs or other unauthorized or mind-altering or intoxicating substances while on NMC property (including parking areas and grounds), or otherwise performing their duties away from NMC Included with this prohibition are lawful controlled substances with have been illegally or improperly obtained. This policy does not prohibit the possession and proper use of lawfully prescribed drugs taken in accordance with the prescription. Off- Duty Conduct Off- Duty possession, use, sale or purchase of mind-altering substances and off-premises alcohol abuse is also prohibited. Alcohol abuse for the purpose of this off-duty conduct rule includes unruly behavior by an employee, which may tend to harm the reputation of the Dealership. Prescription Drugs The proper use of medication prescribed by your physician is not prohibited; however, we do prohibit the misuse of prescribed medication. Employees’ drug use may affect their job performance, such as by causing dizziness or drowsiness. In addition, employees can report the use of prescription or non-prescription drugs that may affect drug tests by completing a written consent form. It is the employee’s responsibility to determine from his/her physician whether a prescribed drug may impair job performance. Notification of Impairment It shall be the responsibility of each employee who observes or has knowledge of another employee in a condition which impairs the employee to perform his or her job duties; or who presents a hazard to the safety and welfare of others, or is otherwise in violation of this policy, to promptly report that fact to his or her immediate Department Manager. Drug and Alcohol Testing NMC may conduct drug tests in the following circumstances:

Application for Employment: Job applicants may be asked to submit to a drug test. Refusal to

submit or a positive confirmed drug test may be used as a basis for refusal to hire the applicant.

Employees who become injured on the job resulting in a worker’s compensation claim.

Returning/Continuing to Work

Employees who test positive, admit to drug or alcohol use or related misconduct or voluntarily

seek assistance, and are not terminated, will not be returned to work or continue to work until

they have been evaluated by a Dealership selected physician allowed to determine if they can

safely return to work.

Allowable Alcohol Use Exceptions At no time shall NMC purchase, provide, or ever encourage or appear to encourage the consumption of alcohol. However, the Executive Manager/Dealer can allow the presence and individual decision to purchase and consume alcohol by employees who are of a legal age and status to drink, during dealership sponsored events and parties. In such cases, employees are responsible for exhibiting moderation and good judgment in their decisions to consume alcohol at such events. NMC Conduct and Harassment Policies are still in effect during outside recreational events and employees must be aware of their behavior in light of these policies and the laws of our local, state and federal governments.

Hazardous and Toxic Materials If your job requires that you use hazardous or toxic materials, you are expected to comply with all laws, rules and regulations concerning their usage, handling and disposal. If you have any questions about the materials you work with or the proper safety procedures to follow, please discuss them with your Department Manager.


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MSDS Information

Visitor Policy

From time to time, employees may have personal visitors stop in the workplace to visit. Visitors are allow able as long as visits are short and do not interfere with the performance of an employee. Employees must have their manager’s permission prior to bringing a child into the workplace for any reason if not accompanied by another adult visitor. Children in the workplace can be both a distraction to the employee, coworkers and customers. Additionally, unsupervised children present an additional danger to themselves and others due to our work environment (i.e. Moving vehicles and other equipment). All Job Shadowing (i.e. through Local High Schools, etc.) including shadowing by children of employees, must be approved by the Department Manager. No person under the age of 18, including relatives of employees, shall be permitted to do any Job Shadow either official or unofficial that is otherwise in violation of State or Federal Child Labor Laws. Such activities include driving of vehicles, operation of any power equipment including lifts, etc.

Off Hours and Off Duty Policies

Off Hours Customer-Work At times we may have the business need to stay late or come in to finish a job during times when the dealership otherwise is not open (i.e. Body Shop job needs completed on a Saturday or Sunday). Permission to work during hours or days that the dealership or that particular department is closed, must be obtained in advance and can only be granted by the Fixed Operations Manager or the General Manager, and not just by a department manager. For safety considerations, at no times shall only one employee be allowed to be on the premises or in any area of the premises alone doing customer paid work. If the work necessitates additional hours, the department manager or another salaried exempt employee must be present at all times while that employee completes work off hours.

Off-Hours, Off-Duty Personal Use of Facilities Employees are prohibited from making use of Dealership facilities outside of normal business hours. Employees are expressly prohibited from using Dealership facilities, Dealership property or Dealership equipment for personal use outside of the Personal Vehicle Policy listed below.

Working on Personal Vehicle Policy

Norfolk Motor Company understands that our trained employees may have the need to use Dealership facilities at times to work on or clean their own personal vehicles. Personal work must be scheduled around customer work and even pre-approved requests to perform personal work can be cancelled at any time by the Department Manager. Listed below are the guidelines that we will follow in allowing employees to use our facilities for work on their personal vehicles. Use of Dealership facilities to work on


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personal vehicles is a privilege and not a right. As such, this privilege can be withdrawn at any time with or without notice as determined appropriate by the Executive Manager of the Dealership. Prior to working on your personal vehicle, you must have permission from your direct manager and all work performed in Dealership buildings must go through a Service Writer and through the full RO process. Parts will be billed through this process and cannot be purchased directly through Parts, although the employee discount (as indicated in the employee handbook) still applies.

Personal vehicles include only vehicles that are registered to the employee or their immediate

(spouse) family member. Dealership has the right to request proof of vehicle registration of any

vehicle you are working on in our buildings.

Employees may only use Dealership owned equipment for which they are otherwise fully trained

as a result of their position at the Dealership. Employees must use their own tools as they do

during normal working hours.

Dealership facilities cannot be used to work on vehicles for ‘personal’ customers as this is a

violation of Dealership policy. Any conflict of interest will result in disciplinary action up to and

including discharge.

In order to ensure the safety of our employees and to be compliant with our insurance Employees

working on their own personal vehicles must understand that they are doing this not as

employees and this work is ‘off the clock’. As a result employees working on their own vehicles

are not covered by Dealership Workers’ Compensation Insurance.

All work done in Dealership buildings must take place during hours of normal business

operations.

All physical work has the potential to be dangerous at least two employees must be present if in

any facility performing work.

All employees must obtain permission and set times to used car wash or other detail equipment.

Such time can be cancelled without notice if it interferes with customer need. Employees who use

facilities without gaining pre-approval to do so are subject to corrective action.

Off-Duty Social and Recreational Activities During the year, the Dealership may sponsor social or recreational activities for its employees. Your attendance at such social activities, however, is completely voluntary and is not work-related. Neither the Dealership nor its insurer will be liable for the payment of workers’ compensation benefits for any injury that arises out of an employee’s voluntary participation in any off-duty recreational, social, or athletic activity that is not part of the employee’s work-related duties. See also the “Approved Alcohol Use Exceptions” segment of the Drug and Alcohol Free Workplace Policy above.


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Section V: Customer Information and Disclosures

Gramm Leach Bliley Act of 1999- Privacy Notice Act On July 1, 2001 the Federal Government enacted the Gramm Leach Bliley Act of 1999. Due to the fact that many employees of Norfolk Motor Company have privilege to customer credit and private information, we are required give employees notice of it. This is the notice that we give to our customers: We collect non-public personal information about you from the following sources:

Information we receive from you on applications or other forms

Information about your transactions with us, our affiliates or others

Information we receive from a consumer-reporting agency

We may disclose all of the information we collect, as described above, to companies that perform marketing services on our behalf or to other financial institutions with whom we have joint marketing agreements. We may make such disclosures about you as consumer, customer or former customer. We may also disclose non-public information about you as a consumer, customer or former customer, to non-affiliated third parties as permitted by law. We restrict access to non-public personal information about you to those employees who have a need to know the personal non-public information, to perform their duties as an employee, in order to provide products or services to you. We maintain electronic, physical and procedural safeguards that comply with federal regulations to guard your non-public personal information.

Cash Reporting Policy Internal Revenue Service (IRS) regulations require that any transaction involving more than $10,000.00 in cash or cash equivalents must be reported to the IRS on Form 8300. “Cash” under the IRS reporting rules includes any kind of currency (U.S. or Foreign), cashier’s checks from banks, bank drafts, traveler’s checks, and money orders, which have a face value of $10,000.00 or less. Combinations of these kinds of instruments are considered “cash” for reporting purposes when they total $10,000.00 or more. Goods and services should be denied to people with cash who are known (actual knowledge) to be engaged in criminal activity. Selling goods and services to one who is known to be a drug dealer or engaged in some other illegal activity is contrary to Dealership Policy The following information must be obtained from the purchaser: name, address, social security number, and if an alien, passport number, country or origin and alien registration number. This information along with a description of the sale must be immediately filed with the IRS on Form 8300 within fifteen (15) days of the cash transaction. The federal Money Laundering Control Act is a criminal law with criminal penalties directed at people who would deliberately conspire with those engaged in enterprises to “launder” money generated from criminal activity. Don’t be a criminal. “Structuring” a transaction to evade the cash reporting requirements carries penalties ranging from $25,000.00 to $100,000.00, and failure to comply with this government regulation is a felony with up to five (5) years in jail. Failure to comply with federal regulation will subject an employee to disciplinary action, up to and including immediate termination of employment, and also could result in a felony conviction.

Legal Requirements The following are the most frequent disclosures that our employees are required to make by law. All employees must comply with these legal requirements in addition to all other federal, state and local laws, rules and regulations:


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Window Stickers and FTC Stickers- These stickers must be intact on all new, demo, or used vehicles at time of presentation and delivery. No employee is authorized to remove them for a customer. Odometer Disclosure- The odometer disclosure form must be signed for all customer trade-ins and for any Dealership vehicle sold. Contract Disclosure- All contracts must be signed in the Dealership. Anyone signing a contract must show proof of identity. Also, the truth in lending and truth in leasing laws require that certain disclosures be made. Failure to make these disclosures can result in voiding of the deal and damages. Privacy Notice: Any time we take a copy of a person’s driver’s license for any reason, we must obtain a signed Privacy Notice statement.

Section VI: Dealership Property and Vehicle Use

Use of Company Property and Vehicles Only authorized employees may use NMC vehicles. If a Dealership vehicle incurs any damage while under the charge of a particular employee, that employee will be responsible for reporting the damage immediately. The employee may be responsible to pay the deductible portion of our insurance. You must hold a valid driver’s license for the class of vehicle you are driving. Further, you may never use a motorcycle either to conduct business or provide transportation for a customer or fellow employee. All people in Dealership vehicles are required to use their seatbelts. Not using seatbelts in a Dealership vehicle may lead to disciplinary action, up to and including termination. Only people authorized by your Department Manager can be passengers in Dealership vehicles. Permitting unauthorized passengers may lead to disciplinary action, up to and including termination. Any employee whose duties include the operation of Dealership or customer vehicles who is cited for D.U.I. or for any other serious moving violation will be considered to have an unacceptable driving record and his or her continued employment will be subject to review. The Dealership must be notified immediately of any change in the status of you driving record. Any employee whose duties include the operation of Dealership or customer vehicles, who becomes uninsured under the Dealership’s liability will be considered to have an unacceptable driving record and his or her continued employment will be subject to review. If an employee receives a traffic citation while operating a Dealership or customer vehicle, the employee will be responsible for paying any fine or penalty. If an employee is involved in a traffic accident while operating a Dealership or customer vehicle, the employee is required to call a police officer to the scene of the accident. The employee must report the accident to the Office Manager immediately. Do not attempt to render medical care or assistance beyond your ability.

Demonstration Drives Salespersons will accompany customers on demonstration drives. Under no circumstances will a customer be allowed to drive a new or used automobile without being accompanied by a salesperson. The customer’s driver’s license should always be photocopied before beginning a demonstration. Salespersons and customers are prohibited from using cell phones while driving NMC vehicles unless using a hands free device and as allowed by NMC cell phone policy. Salespeople must inform customers of our cell phone safety policy prior to any demonstration drive. Texting while driving a company car is strictly prohibited.


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Damage to Property We have made a tremendous investment in our building and equipment in order to better serve our customers and to make your job easier. Deliberate or careless damage to the Dealerships’, your co-worker or customers’ property will not be tolerated.

Use of Office Equipment Office machinery including but not limited to the facsimile and copy machines are for legitimate business purposes only and should not be used for personal use. Employees are prohibited from using these machines for the purpose of transmitting, receiving or copying materials that may be deemed offensive or insulting. Any employee, who receives such materials via facsimile transmission, the mail, or from any other source, should report the transmission immediately to the Executive Manager. Any office tools provided for your use (stapler, calculator, etc.) are the property of the dealership and must be returned on your departure.

Vending and Refreshments Employees are welcome to drink coffee and eat popcorn but they must purchase soda from one of the available vending machines. The Soda machine in the main dealership building is for customers only.

Misuse of Property No employee should misuse, or use without authorization, equipment, vehicles or other property of customers, venders, other employees or the Dealership.

New and Used Parts All parts removed from either customer vehicles or vehicles owned or operated by NMC are the property of NMC. No employee shall remove from the premises any new or used parts without being properly billed or receiving written authorization to the contrary from the Parts Manager or the Service Manager. Pilfering of new and used parts is a serious problem in the automobile Dealership industry and will not be tolerated by NMC.

Operation of Customer Vehicles While a customer’s vehicle remains on Dealership property we all should accept responsibility for its care and treatment. If a customer’s car is damaged in any way, stolen or improperly used while in our possession, NMC might be held responsible. Therefore, we expect our employees to treat every customer’s car as if it were their own. There are a few common sense rules that keep us from upsetting our customers:

Do not play the radio except to repair it;

Do not change the radio station;

Do not smoke or eat in a customer’s vehicle at any time;

Do not drive the vehicle for personal business of any kind;

Do not drive a vehicle without your Department Manger’s permission, and do not carry any

passengers;

Do not remove any customer property from the vehicle.


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Use of a cell phone without a hands free device or texting and driving a customer vehicle is

strictly prohibited.

Since customer satisfaction is essential to the continued success of the Dealership, these rules

must be strictly adhered to.

Section VII: Our Customers Each of us has the obligation of promoting enthusiasm for the Dealership through our individual efforts to provide quality work, prompt service, and a pleasant attitude. These are the factors that let our customers know that they are important, that we really care about them and that we appreciate their business. We believe we should treat people like we, ourselves, like to be treated. Know your product, tell the truth and don’t make promises that cannot be kept. A pleasant manner and helpful attitude makes life a little pleasant for both the customer and you. It is our policy to resolve any and all complaints at the earliest possible time. Under no circumstances would we ever, ever become angry or argumentative with a customer. Our aim is to be helpful and resolve any difficulties in a fair, equitable, and just manner that satisfies the customer. Always ask yourself, “How can I be most helpful?”

Customers are the most important people in our business, whether we are dealing with

them in person or over the telephone.

Customers are not dependent on us. We are dependent on them.

Customers are not an interruption of our work. They are the purpose for it.

Customers favor us with their patronage. We are not doing them a favor by serving them

Customers are a part of our business. They are not outsiders

Customers are not cold statistics. They are human beings with feelings and emotions like

our own.

Customers are not someone to argue with or match wits with.

Customers are people who bring us their wants. It is our job to fill those wants.

Customers are deserving of the most courteous and attentive treatment we can give them.

CUSTOMERS ARE THE LIFEBLOOD OF OUR BUSINESS!!!

Section VIII: Conclusion We try to work together day by day, helping each other and our customers. The philosophy, mission and values are here to guide our thinking and decision-making. We always want our customers to leave Norfolk Motor Company feeling that they’ve received more than they expected. The guidelines in this handbook are for the Dealership as a whole. Your specific departmental manager will be able to inform and explain to you the guidelines, standards, and measurements specific to that department.

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