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Pindler Employee Handbook Revised: 02/01/2016 Page -a- Table of Contents INTRODUCTION INTRODUCTION - 1 - THE PINDLER MISSION - 1 - PURPOSE OF THE EMPLOYEE HANDBOOK - 1 - ACKNOWLEDGEMENT AND RECEIPT OF HANDBOOK - 2 - ACKNOWLEDGEMENT OF RECEIPT & READING OF THE EMPLOYEE HANDBOOK - 2 - HIRING AND EMPLOYMENT PROCEDURE AT-WILL EMPLOYMENT - 3 - IMMIGRATION LAW COMPLIANCE - 3 - ADDRESS OR STATUS CHANGE - 3 - ACCESS TO PERSONNEL FILES - 4 - ACCESS TO PAYROLL RECORDS - 4 - EQUAL OPPORTUNITY EMPLOYMENT - 4 - GENETIC INFORMATION NON-DISCRIMINATION ACT OF 2008 (GINA) - 5 - OPEN DOOR POLICY - 5 - LACTATION ACCOMMODATION - 6 - HOURS OF WORK, OVERTIME AND ATTENDANCE DEFINITIONS OF EMPLOYMENT STATUS - 7 - SCHEDULING OVERTIME PROVISIONS FOR NON-EXEMPT EMPLOYEES - 7 - TIME CARDS - 8 - PAYDAYS - 9 - PAY DEDUCTIONS AND SETOFFS - 9 - HOURS WORKED - 9 -

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Page 1: Table of Contents - Pindler & PindlerPindler Employee Handbook Revised: 02/01/2016 Page -a- Table of Contents INTRODUCTION INTRODUCTION - 1 - THE PINDLER MISSION - 1 - PURPOSE OF THE

Pindler Employee Handbook

Revised: 02/01/2016 Page -a-

Table of Contents

INTRODUCTION

INTRODUCTION - 1 -

THE PINDLER MISSION - 1 -

PURPOSE OF THE EMPLOYEE HANDBOOK - 1 -

ACKNOWLEDGEMENT AND RECEIPT OF HANDBOOK - 2 -

ACKNOWLEDGEMENT OF RECEIPT & READING OF THE EMPLOYEE HANDBOOK - 2 -

HIRING AND EMPLOYMENT PROCEDURE

AT-WILL EMPLOYMENT - 3 -

IMMIGRATION LAW COMPLIANCE - 3 -

ADDRESS OR STATUS CHANGE - 3 -

ACCESS TO PERSONNEL FILES - 4 -

ACCESS TO PAYROLL RECORDS - 4 -

EQUAL OPPORTUNITY EMPLOYMENT - 4 -

GENETIC INFORMATION NON-DISCRIMINATION ACT OF 2008 (GINA) - 5 -

OPEN DOOR POLICY - 5 -

LACTATION ACCOMMODATION - 6 -

HOURS OF WORK, OVERTIME AND ATTENDANCE

DEFINITIONS OF EMPLOYMENT STATUS - 7 -

SCHEDULING OVERTIME PROVISIONS FOR NON-EXEMPT EMPLOYEES - 7 -

TIME CARDS - 8 -

PAYDAYS - 9 -

PAY DEDUCTIONS AND SETOFFS - 9 -

HOURS WORKED - 9 -

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ELECTRONIC COMMUNICATIONS - 10 -

TRAVEL - 10 -

COURSES AND TRAINING - 10 -

MAKE-UP TIME POLICY - 10 -

MEAL BREAKSMeal Breaks - 11 -

REST BREAKSRest Breaks - 11 -

REPORTING INTERFERENCE WITH BREAKS OR PRESSURE TO INACCURATELY RECORD TIMEReporting Interference with Breaks or Pressur e to Inaccuratel y R ecord Time - 12 -

PERFORMANCE EVALUATION - 12 -

ATTENDANCE - 12 -

WAGE PROTECTION - 13 -

INCLEMENT WEATHER AND EMERGENCY OFFICE CLOSURES - 14 -

TRAVEL EXPENSE REIMBURSEMENT - 14 -

EMPLOYEE BENEFITS AND TIME OFF

HEALTH BENEFITS - 15 -

HEALTH INSURANCE CONTINUATION - 15 -

WORKERS’ COMPENSATION - 15 -

CALIFORNIA STATE INSURANCE BENEFITS - 16 -

FAMILY TEMPORARY DISABILITY INSURANCE (FTDI) - 16 -

VACATION BENEFITS - 17 -

PROFIT SHARING - 18 -

HOLIDAY BENEFITS - 18 -

SICK LEAVE BENEFIT - 18 -

FAMILY AND MEDICAL LEAVES OF ABSENCE POLICY - 20 -

PREGNANCY DISABILITY LEAVE - 28 -

PERSONAL LEAVE - 30 -

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MILITARY LEAVE - 30 -

LEAVE FOR SPOUSAL MILITARY LEAVE - 31 -

SOCIAL SECURITY - 31 -

TIME OFF TO VOTE - 32 -

TIME OFF TO APPEAR IN CHILD’S SCHOOL - 32 -

TIME OFF FOR LITERACY PROGRAMS - 33 -

BEREAVEMENT LEAVE BENEFIT - 33 -

VICTIM OF DOMESTIC VIOLENCE OR SEXUAL ASSAULT - 33 -

LEAVE TO ATTEND COURT PROCEEDINGS FOR THE VICTIM OF A FELONY - 34 -

SAFETY PERSONNEL LEAVE - 34 -

ORGAN AND BONE MARROW DONOR LEAVE - 35 -

ALCOHOL AND DRUG REHABILITATION LEAVE - 35 -

CIVIL AIR PATROL - 35 -

ACCEPTING OTHER EMPLOYMENT DURING LEAVE OF ABSENCE - 36 -

GENERAL ENTITLEMENTS DURING LEAVE - 36 -

EXPECTATIONS OF EMPLOYEE CONDUCT

EXPECTATIONS OF CONDUCT - 37 -

POLICY AGAINST HARASSMENT - 38 -

USE OF COMPANY EQUIPMENT - 40 -

SECURITY INSPECTIONS - 40 -

USE OF COMPANY INFORMATION TECHNOLOGY (IT) SYSTEMS - 40 -

PAYPAL USAGE POLICY - 44 -

SOCIAL MEDIA - 46 -

USE OF CORPORATE AND SHOWROOM BUSINESS PHONES - 47 -

PERSONAL CELL PHONE - 47 -

CELL PHONE/MOBILE DEVICE USAGE WHILE DRIVING - 47 -

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DRUGS, ALCOHOL, MARIJUANA, AND OTHER SUBSTANCE ABUSE - 48 -

SAFETY AND SECURITY - 49 -

WORKPLACE SECURITY AND VIOLENCE PREVENTION - 49 -

WEAPONS - 50 -

SMOKING - 50 -

SOLICITATIONS AND DISTRIBUTION OF LITERATURE - 50 -

OUTSIDE EMPLOYMENT - 51 -

CONFLICTS OF INTEREST - 51 -

BUSINESS ACTIVITIES - 51 -

PERSONAL RELATIONS - 51 -

EMPLOYMENT OF RELATIVES - 52 -

CONFIDENTIALITY POLICY - 52 -

EMPLOYEE GRIEVANCES - 53 -

END OF EMPLOYMENT PROCEDURES

SEPARATION PROCEDURES - 54 -

INDEX - 56 -

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INTRODUCTION

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INTRODUCTION

The Pindler Mission

Pindler & Pindler, Inc. has spent more than 67 years in business perfecting the art of fabric design and development. We have never lost sight of the fact that customer service is paramount. Our commitment to provide a unique and ever-expanding product assortment to the professional interior designer remains unchanged.

Purpose of the Employee Handbook

Dear Employee,

Welcome to Pindler!

We are excited to have you as part of our company. Pindler is committed to quality work and superior customer service in all aspects of our business. We value our employees and encourage them to make productive suggestions. We want you to succeed at your job. This Employee Handbook, inclusive of an Acknowledgement Form, sets forth the general administrative policies, rules, guidelines, procedures and benefits of Pindler and replaces and supersedes any prior employee handbook(s). The Company reserves the right to add to, modify, or delete any or all provisions of this handbook at its discretion at any time and without advance notice, with the exception of the at-will employment policy and those policies required by law. Any change will be communicated to employees through official channels. Nothing in this handbook shall create, or is intended to create, or shall be construed to constitute, a contract of employment, express or implied, and nothing in this handbook changes an employee’s at will employment status. To obtain information regarding specific employment policies or procedures, whether or not they are referred to in this handbook, employees should contact the Human Resources Representative for Pindler& Pindler, Inc. Pindler complies with any federal, state, and local law applicable to the policies in this Handbook, and, in the event of a conflict between this Handbook and applicable law, as amended from time to time, applicable law shall prevail. This handbook is the property of Pindler & Pindler Inc. and is intended for use only by employees of Pindler & Pindler Inc. You may not circulate this handbook without written authority. While we expect to follow the policies and procedures in this handbook, it is not a contract and does not create any contractual obligations or enforceable promises, express or implied, of any kind.

To your success at Pindler.

Sincerely,

-Curt Pindler, President

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Acknowledgement and Receipt of Handbook

Every employee should read this entire handbook and then sign and return the attached acknowledgment form.

Acknowledgement of Receipt & Reading of the Employee Handbook

I have received and read a copy of Pindler’s Employee Handbook. I understand that it is my responsibility to read and become familiar with its contents, its policies and procedures, and I agree to follow them.

I understand that my employment is at-will, that the company or I can terminate my employment, with or without cause, with or without notice, that it shall continue as long as mutually agreeable to me and to Pindler & Pindler, Inc. that no one other than Curt Pindler has the authority to make an agreement contrary to the foregoing and that any such agreement must be in writing and signed by Curt Pindler.

I further understand and agree that:

This handbook will be effective February 1, 2016 and will supersede previously written Pindler handbook(s) and separately drafted policies contained herein.

Any policies and procedures set forth in the Handbook are statements of general policy and shall, in no manner, be construed to imply a contract or guarantee of continuing employment or employment for any specific length of time and Pindler & Pindler, Inc. may modify or rescind any of its policies, benefits, or practices except for its policy of at-will employment and those policies required by law.

I will be responsible for complying with those changes as communicated through official channels, whether or not I have acknowledged them.

Signature of Employee:

Print Name of Employee:

Date of Signature:

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HIRING AND EMPLOYMENT PROCEDURE

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At-Will Employment

All employment at Pindler & Pindler, Inc. is "at will." This means that both Pindler and each employee has the right to terminate their employment relationship at any time, with or without advance notice, and with or without cause. Employees also may be demoted or disciplined and the terms of their employment may be altered at any time, with or without cause or notice, at the discretion of Pindler. No one other than Curt Pindler has the authority to change this at-will relationship, and any such change must be in writing and signed by Curt Pindler.

Immigration Law Compliance

It is the policy of the Pindler to employ only United States citizens and / or aliens who are authorized to work in the United States. In complying with the Immigration Reform and Control Act of 1986, it is against Company policy to discriminate because of an individual’s national origin, citizenship, or intent to become a U.S. citizen.

U.S. Citizenship and Immigration Services Form I-9 is used to verify your identity and verify that you are legally employable in the United States. You must complete the employee section of Form I-9 and provide the required documentation supporting your identity and employment eligibility before you may begin working.

Pindler participates in the federal government's E-Verify program. With E-Verify Pindler is able to confirm the employment authorization of all newly hired employees through an electronic database maintained by the Social Security Administration and Department of Homeland Security. With respect to new hires, the E-Verify process is completed in conjunction with a new hire's completion of the Form I-9, Employment Eligibility Verification upon commencement of employment. E-Verify is not used as a tool to pre-screen candidates.

The Company shall retain copies of the documents submitted by the employee. To the extent practical and appropriate, these documents will be kept confidential. However, the Company is required to provide copies of the documents to the U.S. Department of Labor and the U.S. Immigration and Custom’s Enforcement Service (USICE), on request.

Providing false documentation or making false statements on the verification shall be grounds for immediate discharge. If, during the course of employment, the Company requests further information relating to the employee’s authorization to work in the United States, the employee shall furnish the information requested and failure to cooperate in furnishing such information shall be grounds for discipline, up to and including discharge.

Address or Status Change

It is the responsibility of each employee to promptly notify Human Resources of any changes in personal data.

Personal home address, telephone number, names of dependents, marital status/domestic partnership status, person to be contacted in the event of an emergency, and other such status reports must be accurate at all times. Failure to furnish this information or failure to keep the information current can be grounds for discipline, including discharge. This policy applies to all employees, including those on leave.

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Access to Personnel Files

The Company will retain a record of each employee’s work history. Subject to state and federal law, upon request, an employee or his/her personal representative will be given access to the employee’s personnel files within 30 days from the date the Company receives a written request. The employee or his/her personal representative may inspect the records at reasonable times and at reasonable intervals. Prior to making the records available, the Company may redact the name of any nonsupervisory employee contained in the records. Upon written request, employees will be given copies of materials in their personnel file. The employee will pay the cost of copying the documents.

Since personnel files contain personal information, the Company will make a reasonable effort to maintain the confidentiality of the file. The Company generally does not release personnel information to third parties unless there is reasonable protection of the employee’s privacy, the employee has given his/her written authorization, providing the record is required by legal process, or if release of the records is needed to protect the Company’s business interests.

Access to Payroll Records

Within 21 days of an employee’s request to inspect or copy payroll records, the employee will be given access to certain payroll records. The following can be included in such a request: amounts of wages earned, total hours, piece rate information (for piece workers), itemized deductions, dates of the payroll period, employee name and the last four digits of the employee’s social security number, name and address of Company, and applicable hourly rates. The employee should specify precisely what the employee is requesting to review. Upon request, employees will be given copies of these payroll records. A reasonable charge will be made for such copies.

EQUAL OPPORTUNITY EMPLOYMENT

Policy Against Discrimination

Pindler is an equal opportunity employer. The Company prohibits discrimination against any employee, applicant for employment, intern or volunteer based on the employee’s actual or perceived race, color, religion, national origin, ancestry, sex, gender identity, gender expression, age, pregnancy, citizenship, genetic characteristics, genetic information, medical condition, disability, status as a special disabled veteran or veteran of the Vietnam era, past or present membership in the uniformed/military service, marital or domestic partnership status, sexual orientation or any other factor prohibited by law, as applicable to the Company.

Specifically, the Company is committed to recruiting, hiring, training, and promoting qualified persons without unlawful discrimination, and to administering all personnel actions, including compensation, benefits, transfers, layoffs or terminations, returns from layoff, training, education and social and recreational programs, without discrimination.

Reasonable Accommodation

Pindler adheres to the Americans with Disabilities Act (ADA), as amended, and the California Fair Employment and Housing Act, and other applicable laws and makes every effort to ensure that qualified individuals with a disability are not discriminated against in any terms, conditions,

or privileges of employment. The Company will make reasonable accommodations for the

known physical or mental disabilities (which does not adversely affect the applicant’s or

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employee’s ability to perform the essential functions of the position) of an otherwise qualified applicant for employment or an employee, unless undue hardship would result. Any applicant or employee who requires accommodation in order to perform the essential functions of a job should contact the Human Resources Representative for Pindler.

Pindler will participate in the inter-active process.

For the complaint procedure see page 39.

Genetic Information Non-Discrimination Act of 2008 (GINA)

The Company respects all employees’ privacy in their genetic information and prohibits discrimination, harassment, or retaliation on the basis of genetic information. The Company complies with GINA and will not request or require genetic information of any staff member or family member of the staff member, except as specifically allowed by GINA, nor will the Company use genetic information in making decisions relating to any terms, conditions, or privileges of employment.

We will not take action that would limit, segregate, or classify employees because of genetic information. We will not request or require an applicant’s, employee’s or family member’s genetic information. The Company shall keep confidential any genetic information which it possess (e.g., pursuant to a medical leave certification request; by acquiring the information inadvertently; or as part of an employee’s participation in a voluntary health or wellness program).

Genetic information includes:

Results of an employee’s or family member’s genetic tests;

Family medical history;

Requests for, and receipt of, genetic services or the participation in clinical research that includes genetic services by an employee or a family member; and

Genetic information about a fetus carried by an employee or family member, or about an embryo legally held by the employee or family member using assisted reproductive technology.

Open Door Policy

Pindler is committed to maintaining a positive and pleasant work environment in which to work, and believes in an open door policy. You are encouraged to see your immediate supervisor with suggestions, questions, or problems relating to your job. You can also meet with any management representative without regard to his or her position in the company.

While this procedure cannot result in every problem being resolved to your satisfaction, the Company values your input and you should feel free to raise issues of concern.

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Lactation Accommodation

Pindler will provide a reasonable amount of break time to accommodate an employee desiring to express breast milk for the employee’s infant child. The break time will, if possible, run concurrently with any paid break time that is already provided to the employee. If additional break time is required, it shall be unpaid.

The Company will provide the employee with the use of a room or other location, (not merely a toilet stall), in close proximity to the employee’s work area, for the employee to express milk in private.

Break time for expressing milk will not be provided if to do so would seriously disrupt operations of the business.

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HOURS OF WORK, OVERTIME AND ATTENDANCE

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Definitions of Employment Status

The following terms are terms used in this handbook to describe the classifications of employees and their employment status.

Exempt – Employees whose positions meet the specific tests / requirements established by state and federal law and who are exempt from overtime pay requirements.

Non - Exempt – Employees whose positions do not meet state and federal tests / requirements and who are paid overtime pay for authorized overtime.

Regular Full–Time – Employees scheduled to work 30 hours or more per week.

Regular Part–Time – Employees scheduled to work less than 30 hours per week. Those employees working fewer than 30 hours per week are ineligible for Company benefits.

Temporary and Project – Employees employed in a capacity of limited, specified duration (either full-time or part-time), generally not to exceed six months. Pindler reserves the right to extend the duration of temporary or project employee’s service beyond that originally contemplated without affecting the employee’s benefit status. Except as required by law, regular part-time and temporary or project employees are generally ineligible for Company benefits. To determine eligibility for specific benefits, consult the sections of this Handbook addressing those benefits.

Independent contractors and consultants are not employees of the Company and are not entitled to employee benefits. Terms and conditions of their services are set forth in an agreement entered into between the Company and the Contractor, or his / her employer.

If you have any doubt about your status as described above, contact the Company’s HR representative.

Scheduling Overtime Provisions for Non-Exempt Employees

Each employee’s supervisor will inform him/her of his/her regular work schedule/shift. Due to possible changes in the work force and business needs, the Company retains the right to change this work schedule or the number of hours in a standard shift.

Non-exempt employees are eligible for overtime pay in accordance with state and federal law. Each employee’s supervisor will tell him/her the circumstances under which he/she will be eligible for overtime pay. The supervisor will also tell the employee if he/she is required to work overtime. Overtime should not be worked without the prior [written] authorization of a supervisor. Working overtime without prior approval or working off the clock under any circumstances is grounds for disciplinary action, up to and including termination.

All straight-time and overtime hours must be accurately recorded on the non-exempt employee’s time card and approved by the supervisor prior to payment. Tampering, altering or falsifying records, including time records, may result in disciplinary action, including discharge.

Overtime is paid at one and one-half times the regular hourly rate for hours in excess of eight in a workday or 40 in a workweek. The employee will be paid at double the regular hourly rate for hours in excess of 12 in a workday. If an employee works seven consecutive days in a workweek, overtime for work on the seventh day will be paid at one and one-half times the regular rate for up to and including eight hours, and double time for any hours worked in excess of eight. Hours paid but not worked, such as holidays, sick days, and vacations, do not count as hours worked for overtime purposes.

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Exempt employees are paid a salary that covers all hours worked. Therefore, they are not eligible for additional compensation if they work additional hours.

Time Cards

The Company provides time clocks at their corporate location, however that is not the case at our showrooms; therefore there are two timekeeping policies for non-exempt employees. All showroom manage their timecards by way of their own payroll link/login.

Corporate Non-Exempt Employees – Time clocks are provided for employees to clock in and out with. Time clock policies are as follows:

1. Employees shall use the time clock to record their start time, time out for meal period, time in from meal period, and quitting time for each work day.

2. Employees are not permitted to clock in or commence work more than 7 minutes before their normal starting time or to sign out or stop work later than 7 minutes after their normal quitting time without prior approval of the supervisor.

3. All employees are required to take a lunch or meal period.

4. All employee time records shall be monitored by the supervisor involved. Authorized overtime shall be identified by the supervisor.

5. Exempt employees are not required to clock in and out, and are not eligible to receive overtime compensation.

6. Falsifying a time card is prohibited and may result in disciplinary action up to and including termination.

Off-site Non-Exempt Employees or Pindler & Pindler Showroom Employees – Employees are required to manage their own time cards by way of the payroll link and login provided to them at time of hire. Time cards will cover a two week work period and shall be filled out as follows:

1. Employees shall use the payroll link provided to them to record their start time, time out for meal period, time in from meal period, and quitting time for each work day.

2. Employees are not permitted to commence work more than 7 minutes before their normal starting time or to sign out or stop work later than 7 minutes after their normal quitting time without prior approval of the supervisor.

3. All employees are required to take a lunch or meal period.

4. All employee time records shall be monitored by the supervisor. Authorized overtime shall be identified in advance by the supervisor.

5. Exempt employees are not required to clock in and out, and are not eligible to receive overtime compensation.

6. Falsifying a time card is prohibited and may result in disciplinary action up to and including termination.

Overtime must be approved by your supervisor in advance. Working non-approved overtime may subject you to disciplinary action.

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Tardiness occurs when an employee reports to work past their normal scheduled starting time. Employees will be docked for tardiness. Docked minutes for tardiness may not be made up. The following table is used to calculate docked time for tardiness:

08-22 minutes past starting time = 15 minutes docked

23-37 minutes past starting time = 30 minutes docked

38-52 minutes past starting time = 45 minutes docked

52-67 minutes past starting time = 60 minutes docked

And so on

Paydays

All employees are paid bi-weekly. There are 26 payroll periods in a calendar year. Each payroll period begins on Tuesday and ends 14 days later on a Monday. The regular scheduled payday always falls on the Friday following the end of the payroll period. Each paycheck will include earnings for all reported work performed through the end of the payroll period.

In the event that regularly scheduled payday (Friday) falls on a holiday, employees will receive their pay on the day preceding (Thursday) the holiday.

All Employees will receive an itemized statement of wages each payday.

Pay Deductions and Setoffs

The law requires that the company make certain deductions from every employee’s paycheck. Among these deductions are applicable federal, state, and local income taxes.

The Company offers programs and benefits beyond those required by law. Employees who wish to participate in these programs may voluntarily authorize deductions from their pay checks.

To be successful, our organization requires the active contribution of all employees. Accordingly, attendance is essential for all positions with Pindler.

Hours Worked

It is the policy of Pindler & Pindler, Inc. to establish working hours as required by work load and customer service needs.

The normal work week is Monday through Friday and consists of forty hours. The normal workday consists of eight hours of work with an unpaid meal period. Rest or coffee breaks are considered as time worked. The schedule of hours for employees shall be determined by the department or office to which they are assigned. Employees shall be informed of their daily schedule of hours of work, including meal period and rest or coffee beaks and of any changes deemed necessary by Pindler & Pindler, Inc.

Due to the nature of our business, employees must be willing to work overtime.

Some of our employees may be exempt from the overtime pay requirements of the law. Exempt employees are paid on a salary basis and generally are in executive, administrative, or

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professional positions. Exempt employees may have to work beyond their normal schedules as work demands require but will receive no overtime compensation.

Non - exempt employees are paid on either salary or an hourly basis. If required or authorized to work overtime, they will receive overtime compensation in accordance with the following:

All hours worked over forty (40) hours in a workweek or in excess of eight (8) in a work day will be paid at one and one half (1 ½) times the employee’s regular rate of pay. An employee will be paid at double the regular rate of pay for hours in excess of twelve (12) hours in a workday. If an employee works seven consecutive days in a work week, overtime for work on the seventh (7th) day will be paid be paid at one and one half (1 ½) times the employee’s regular rate of pay for up to eight hours, and double time for any hours worked in excess of eight.

You may not work overtime unless you are requested to do so or obtain permission from your supervisor in advance. If you work overtime without permission, you will be subject to discipline, up to and including termination of employment.

Electronic Communications

As with other types of authorized work, all time spent by non-exempt employees utilizing electronic communications for work purposes will be considered hours worked. This work is compensable and will count toward overtime eligibility as required by law. Therefore, in order to avoid incurring unnecessary expenses, electronic communications should not be used outside of regularly scheduled work hours unless required by your supervisor. This includes all types of work-related communication.

Travel

Travel time for business purposes generally is considered compensable work time, regardless of what day of the week the travel takes place. Travel time includes the time from when the employee leaves his or her home to the time the employee reaches his/her destination, less the employee’s normal commute time. The destination can be either the worksite or a hotel if the employee travels to the hotel before going to the worksite.

On multiday trips, travel between the hotel and worksite is considered normal commuting time and is not eligible for compensation, unless it exceeds normal commute time.

Once you reach your hotel or other destination and you are free to eat, sleep or engage in other personal pursuits, the time is no longer counted as travel time and is not compensable. Similarly if you take a break from travel to eat, sleep or engage in personal pursuits, that time is not paid time.

Courses and Training

Attendance at courses or trainings count as compensable working hours if attendance is required as part of the employee’s job, even if the event occurs outside of regular working hours.

Make-Up Time Policy

The Company allows the use of make-up time when non-exempt employees need time off to tend to personal obligations. Employees may take time off and the make up the time later in the

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same work week, or may work extra hours earlier in the work week to make up for time that will be taken off later in the work week. Make-up time worked will not be paid at an overtime rate.

Make-up time requests must be submitted in writing to your supervisor, with your signature. Requests will be considered for approval based on the legitimate business needs of the Company at the time the request is submitted. A separate written request is required for each occasion the employee requests make-up time.

If you request time off that you will make up later in the work week, you must submit your request at least 24 hours before the desired time off. Your make-up time request must be approved in writing before you take the requested time off or work make-up time, whichever occurs first.

All make-up time must be worked in the same work week as the time taken off.

Non-exempt employees may not work more than 11 hours in a day or 40 hours in a work week as a result of make-up time that was or would be lost due to personal obligation.

If you take time off and are unable to work the scheduled make-up time for any reason, the hours missed normally will be unpaid. However, your supervisor may arrange with you another day to make-up the time, if possible, based on scheduling needs. If you work make-up time before you plan to take off, you must take that time off, even if you no longer need the time off for any reason.

Any employee’s use of make-up time is completely voluntary. The Company does not encourage, discourage or solicit the use of make-up time.

Meal Breaks

All employees, exempt and non-exempt, are encouraged to take a one-half hour meal break each eight-hour shift. Non-exempt employees are REQUIRED to take a half-hour meal break during the first five hours of work. The meal period should be completed no later than the end of the employee’s fifth hour of work. However, when a non-exempt employee’s work day will be six hours or less, the employee may waive the meal period.

If a non-exempt employee works ten hours in a work day, he/she is required to take a second half-hour meal break. This second meal period should be taken no later than the end of the employee’s 10th hour of work. However, non-exempt employees who work under 12 hours can waive their second meal period if they did not waive their first meal period.

Non-exempt employees are required to record the start and stop times of each meal break on their time cards. Employees may leave the premises and are relieved of all duties during their meal breaks. Supervisors will schedule meal breaks in a manner that will ensure that employees get their meal breaks while maintaining adequate coverage of job duties.

Rest Breaks

All non-exempt employees are entitled to rest breaks. If a non-exempt employee works between three and one-half hours and six hours in a day the employee is entitled to one ten minute break. If the employee works between six hours and ten hours the employee is entitled to two ten minute breaks. The employee will be entitled to an additional ten minute break for each four hours, or major fraction thereof, worked in excess of 10 hours in a day. Employees

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are not required to record the start and stop times of rest breaks on their time cards. Employees shall not leave the premises during any rest breaks unless they make special arrangements with their supervisor.

Reporting Interference with Breaks or Pressure to Inaccurately Record Time

If a non-exempt employee is not provided meal breaks, rest breaks and recovery periods in accordance with this policy, the employee should notify the Company’s HR representative the same day it occurs. HR will determine whether the employee is entitled to additional compensation under applicable law. If any employee feels that a supervisor or anyone else is interfering with any employee’s ability to take a full, uninterrupted meal breaks and full rest breaks or pressuring the employee to work off-the-clock or otherwise inaccurately report time worked in accordance with the policies in this Handbook, he/she should immediately report this to the Company’s Human Resources Representative. Any complaints under this section will be promptly investigated and appropriate disciplinary action will be taken. The Company will not permit any form of retaliation against any employee who reports such conduct.

Performance Evaluation

Performance evaluations generally will be conducted upon an employee’s completion of the first 90 days of employment, the introductory period, and annually thereafter. An evaluation will also be given within 90 days after a transfer or a change in an employee’s classification. The purpose of evaluations is to let employees know how well they are performing their assigned job duties, and whether they have any performance opportunities. Evaluations will generally be conducted in a private meeting between employees and their immediate supervisor. Employees will be allowed to see their evaluations, sign the forms, and will be given a copy for their records.

Attendance

Each employee is expected to:

Be ready to work each scheduled workday at the assigned time and place,

Remain on duty during scheduled work hours (except for authorized breaks)

Punch in for time worked and punch out for leave and meal periods

The following are examples of violations of this policy, which may result in discipline, up to and including termination:

Tardiness

Reporting to work unfit for duty

Failing to give advance notice of absences or tardiness

Failing to remain on duty during your shift

Unauthorized or unjustified absences

Excessive absences

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Good attendance is an important responsibility of all Pindler employees. Good attendance is defined as being at work, on time, every day that the employee is scheduled to work. Every position here at Pindler is vital to the overall company operation. When employees fail to maintain a good attendance record (which also includes remaining at work for the full shift), and/or frequently fail to arrive on time for their shifts, these are disruptive and put added burdens on other employees.

Pindler defines its attendance policy in the following terms:

Absence: The failure of an employee to report to work during the hours he/she is normally scheduled.

Excused absence: This occurs when an employee notifies his or her immediate supervisor of an upcoming absence for an acceptable reason such as illness, personal or family emergency, or the like. The supervisor must give the employee permission to be absent, and note such permission in writing for the absence to be considered “excused”. Rare exceptions are permitted in cases where employee notification does not occur. An absence excused or otherwise, is subject to Pindler’s attendance policy.

Unexcused absence: This occurs when an employee failure to notify their immediate supervisor of absence prior to the normally scheduled work time, or when an employee is absent even though supervisory permission was not granted when requested ahead of time, except as provided in the Sick Leave Benefit policy (or the PTO Policy for San Francisco employees) in connection with the unforeseeable use of sick leave (or the unforeseeable use of PTO related to illness of the employee or family member or other reasons state in that policy). In such cases, employees should provide notice as soon as practicable.

Personal Business: Employees must get permission from their immediate supervisor for time off during working hours to conduct personal business.

Tardiness: This occurs when a non-exempt employee is not on the job at the scheduled “start” time for his/her shift. This also includes a non-exempt employee returning late from an allotted rest or meal period

Job Abandonment: If an employee fails to notify his/her supervisor of his/her absence for two (2) consecutive days, the employee may be considered to have voluntarily terminated his/her employment as of the first day of the unreported absence. At that time he/she will be deleted from payroll.

When employees will be late reporting to work or absent without prior approval, the employee must call personally and speak directly to a supervisor within 15 minutes of the scheduled starting time. Unless the Pindler employee is physically unable to make the telephone call, notification by a friend or relative does not satisfy this notification requirement.

Pindler management reserves the right to consider an employee’s length of service, prior disciplinary record, patterns of absences, and other aggravating or mitigating circumstances in deciding whether to modify or alter these disciplinary steps.

Wage Protection

At the time of hire or within seven days of any change to the information specified below, the Company will provide a separate document to non-exempt employees that will set forth the following information:

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The employee’s rate of pay including overtime rates;

Whether the employee is paid on an hourly or salary basis;

Whether there are any allowances (such as meal or lodging) that are part of the wages;

The regular pay day schedule;

The Company’s name (including “doing business as” names), physical and mailing addresses for the main office, and phone number of the main office; and

The name, address, and telephone number of the Company’s workers’ compensation carrier.

Inclement Weather and Emergency Office Closures

On rare occasions, the Company may close it offices due to inclement weather or other unforeseen circumstances. The Company will make every effort to provide notice of the closure to all affected employees. In the event of severe inclement weather or unforeseen circumstances, employees should check the office status before leaving home. In the absence of a closure notification, the Company will remain open for business, and employees are expected to report to work as normally scheduled. In the event that the Company’s work is interrupted by a cause not within the Company’s control, non-exempt employees will not be paid for time not worked.

Travel Expense Reimbursement

See separate policy

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EMPLOYEE BENEFITS AND TIME OFF

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Health Benefits

All regular, full-time employees are eligible for participation in the Company-sponsored medical insurance program on the first of the month following 30 days of employment. For complete descriptions of the coverage available under these programs, the eligibility requirements and other terms and conditions, please see the Group Insurance Program handbooks. If you have any questions pertaining to the plans offered by Pindler & Pindler, Inc. please contact your supervisor. Part-time and temporary employees are not eligible to participate in this insurance program.

The Company reserves the right to alter, amend or terminate benefits from time-to-time on reasonable notice.

Health Insurance Continuation

In accordance with the requirements of the federal and state health insurance law, eligible employees and their family members may continue, at their own cost, participation in the Company’s group health insurance program following certain qualifying events. These events include an employee’s termination (other than due to “gross misconduct”), resignation, reduction in hours, divorce, legal separation, death, Medicare entitlement, and certain other events.

Workers’ Compensation

The Company provides a comprehensive workers’ compensation insurance program at no cost to employees. This program provides insurance for covered injuries or illnesses sustained in the course of employment that require medical, surgical, or hospital treatment. Workers’ compensation insurance provides both medical care and partial income replacement during the time that an employee is unable to work because of an illness or injury arising out of employment. Subject to applicable legal requirements, workers’ compensation insurance provides benefits after a short waiting period or, if the employee is hospitalized, immediately.

Any employee who sustains a work-related injury or illness should inform his/her supervisor immediately. No matter how minor an on-the-job injury may appear, it is important that it be reported immediately. This will enable an eligible employee to qualify for coverage as quickly as possible.

Neither the Company nor the insurance carrier will be liable for the payment of workers’ compensation benefits for injuries that occur during an employee’s voluntary participation in any off-duty recreational, social, or athletic activity sponsored by the Company.

Workers’ compensation leave is unpaid, i.e., wages are not paid by the Company though employees can receive partial income replacement through the insurance program. Employees may use any accrued sick time or vacation time while on workers’ compensation leave. The Company will continue to provide health benefits for an employee on workers’ compensation leave for up to 12 weeks under the same terms and conditions as if the employee were still working. The employee will be required to continue paying the employee’s portion of any premiums (please see the section titled “Benefits during Family and Medical Leave” for further information). After 12 weeks, the employee can continue health insurance benefits through COBRA.

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California State Insurance Benefits

*California Employee’s Only

The state of California has various insurance programs designed to provide partial income replacement in the event that an employee is unable to work for a variety of reasons. These insurance programs are funded through payroll deductions and participation is mandatory for all California employees.

Unemployment Insurance (UI) provides partial income replacement in the event that an employee leaves employment for reasons beyond his or her control, such as a termination without cause or a resignation due to the need to move to another city for a spouse’s or registered domestic partner’s employment.

State Disability Insurance (SDI) provides partial income replacement if you are disabled from working due to pregnancy or a non-work related illness or injury. To be eligible for weekly compensation, your doctor must certify that you are unable to work and you must complete and file a claim form. Claim forms are available in the [Human Resources Department] or the Employment Development Department (EDD) offices. You must file a claim with the EDD to receive any payment. There is a seven-day waiting period before benefits are paid. Eligible employees will be paid a percentage of their regular earnings for maximum period provided by law. [When you file a claim for SDI, the Company will integrate your sick leave with SDI and pay you the difference between what you are receiving from SDI and your regular salary until the employee’s accumulated sick pay is exhausted. Once you provide a check stub of the amount SDI is paying, your sick leave will be integrated with your SDI payments.] For additional information about eligibility or benefit amounts, see the SDI benefits brochure, which will be provided to you, or call a SDI office.

Family Temporary Disability Insurance (FTDI)

Family Temporary Disability Insurance provides partial income replacement if an employee takes leave for any of the following reasons:

to bond with a child who has been born, adopted, or accepted for foster care by the employee or the employee’s spouse or registered domestic partner; or

to care for a sick child of the employee, employee’s spouse or employee’s registered domestic partner; or

to care for a sick spouse or registered domestic partner or the employee’s sick parent grandparent, grandchild, sibling or parent-in-law.

The costs of this program are paid by employees who must make contributions to the state through legally required payroll taxes and it is the state, not the Company, that distributes the FTDI benefits.

The right to receive FTDI does not guarantee employees the right to time off or job guarantees. The program has eligibility requirements, waiting periods, and limits on benefits. For example, FTDI provides income replacement for up to 55% of the employee’s wages, to a maximum cap that is set annually, for up to six weeks. There is a one-week waiting period before an employee can apply for FTDI and employees are allowed to use any accrued vacation or sick leave prior to FTDI beginning.

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Employees should inform [Human Resources] as soon as they become aware of circumstances that may trigger eligibility for benefits under any of these state-run insurance programs. Although these programs are funded and run by the state and all eligibility and benefits decisions are made by the state agencies involved, not by the Company, [Human Resources] will assist you in obtaining additional information about these programs.

Vacation Benefits

Regular full – time employees are eligible to accrue vacation with pay in accordance with the guidelines established below.

1. The established vacation year is a full 12 month period based on an employee’s anniversary date “date of employment”.

2. Regular full-time employees will accrue paid vacation according to the following schedule on a pro rata basis.

Length of Service Paid Vacation

From date of employment to and including 4 years of service

80 hours each year

5 to 9 years 120 hours each year

10 years or more 160 hours each year

3. Any employee who feels there is a discrepancy in the calculation of his or her vacation pay or eligibility may request a review of that calculation.

4. Vacation pay for regular full-time employees shall be calculated based on the employee’s regular rate of pay for the vacation period.

5. Each employee must submit vacation plans to his or her supervisor no less than 2 weeks in advance and no more than 6 months in advance. Should circumstances compel a change in vacation plans, reasonable notice must be given to the supervisor.

6. In the event of conflicting vacation plans within a department, priority shall be established on the basis of seniority. It is the responsibility of the supervisor to ensure that his or her staff is adequate at all times.

7. No employee may accrue more than 40 hours of accrued vacation over the annual amount they are eligible to accrue based on length of service. Once an employee reaches this ceiling the employee will cease accruing any additional vacation. If the employee later uses enough vacation pay to fall below the ceiling, the employee will start accruing vacation pay again from that date forward until he / she reaches the ceiling. Accordingly, employees are encouraged to use all vacation as soon as possible after it accrues in order to avoid reaching the ceiling on accrued vacation.

8. Salary will not be paid to current employees in lieu of unused accrued vacation. On separation from employment with Pindler & Pindler, Inc. an employee will be paid vacation pay for all accrued and unused vacation.

9. If a recognized paid holiday falls within an employee’s vacation it shall not be counted as a vacation day.

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10. An employee who retires shall be entitled to take all of his or her accrued unused vacation during the year in which retirement occurs.

11. The Company reserves the right to schedule employees for vacations or to pay off earned, unused vacation at any time.

San Francisco and Minneapolis employees – see separate policy.

Profit Sharing

Please see: Separate handout.

Holiday Benefits

All full-time employees who have completed their introductory period will receive eight hours of pay at their regular rate for the following holidays, subject to the restrictions described below.

NEW YEARS DAY

MEMORIAL DAY

INDEPENDENCE DAY

LABOR DAY

THANKSGIVING

CHRISTMAS DAY

1. Full-time employees who have completed their introductory period are eligible for holiday benefits.

2. In order to be eligible for holiday benefits, an employee must work the last regularly scheduled workday before and the first regularly scheduled workday after the holiday.

3. If a holiday falls on a Saturday, it will be observed on the preceding Friday. If a holiday falls on a Sunday, it will be observed on the next Monday.

4. If a holiday falls during an employee’s approved vacation period, the employee will be paid for the holiday and will not be charged with a vacation day for the day the holiday is observed.

5. Employees on leave of absence for any reason are ineligible for holiday benefits for holidays that are observed during the period they are on leave of absence.

6. Holiday pay is not considered “hours worked” for overtime purposes.

Sick Leave Benefit

In order to minimize the economic hardships that may result from an unexpected short-term illness or injury, Pindler provides sick leave benefits to all employees for periods of temporary absence due to illnesses or injuries.

Sick Leave Accrual for Full-time, Part-time, Project and Temporary Employees: Under the “Healthy Workplaces, Healthy Families Act of 2014 (the “Act”), all full-time, part-time, project and temporary employees are eligible to accrue one (1) hour of paid sick time for every thirty (30) hours worked. Full-time, part-time, project and temporary employees may accrue up to 48 hours (6 days) of sick leave, after which point accrual will cease until the accrued sick leave

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balance falls below 48 hours (6 days). Sick leave may not be used until an employee’s 90th day of employment, and must be used in minimum increments of two (2) hours. Full-time, part-time, project and temporary employees may use up to 24 hours (3 days) of sick leave per year.

Sick leave may be used to attend to an employee’s own illness or injury, or that of a family member. It may be used for: diagnosis, care or treatment of a health condition; preventative care; or for medical services, counseling, safety planning or legal relief if the employee or his/her child is a victim of domestic violence, sexual assault or stalking.

A notification from a doctor that an employee is able to return to work may be required for absences of longer than three days.

Sick pay benefits are available beginning with the first hour away from the job due to illness or injury. However, because sick leave benefits are intended to provide income protection to the employee in the event he or she takes time off in connection with his or her actual illness or injury or that of a family member, unused sick leave benefits cannot be used for any other paid or unpaid absence.

Unused sick leave benefits accumulate from year to year up to a maximum of 48 hours. However, employees are not paid for unused sick leave benefits upon termination of employment or retirement.

Employees who are unable to report to work due to personal or family member illness, or injury are required to provide reasonable advanced notification to the Company when the use of sick leave is foreseeable, and notice as soon as practicable when it’s unforeseeable. If an employee becomes sick during the day, the supervisor must be notified before the employee leaves the work site. Failure to follow these procedures will result in treatment of the day as unexcused absence and can result in disciplinary action as well.

Employees are not required, as a condition of using sick leave, to search for or find a replacement worker to cover their time off. An Employee may not be terminated or retaliated against for using or requesting to use sick leave under this section. Employees have the right to file a complaint with the California Labor Commissioner for alleged violations of this prohibition.

Sick leave benefits will be used to supplement any state disability insurance or workers’ compensation benefits that an employee is eligible to receive. The combination of any such disability payments and sick leave benefits cannot exceed the employee’s normal earnings. You are required to submit a copy of your SDI or workers’ compensation checks to the Company. For each day you are off work, your sick leave account will be reduced by the difference between your SDI or workers’ compensation benefits and your regular pay. If you do not submit your SDI/workers’ compensation checks, your sick leave account will be reduced by a full days’ pay.

If an employee is rehired within one year of the date of separation, up to six days (48 hours) of accrued and unused sick leave will be reinstated.

Also see the attendance policy. District of Columbia employees – sick leave accrues in accordance with local laws. San Francisco and Minneapolis employees – see separate policy.

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Family and Medical Leaves of Absence Policy

This policy is designed to provide the leaves required by the federal Family and Medical Leave Act (“FMLA”) and California state law (“CFRA”). This policy provides for paid and unpaid family and medical leave under the terms and conditions set forth below. Leaves are available:

for the birth or adoption or foster care placement of a Child or the care of a newborn Child (counts toward FMLA and CFRA entitlements); or

to care for the employee’s Child, Parent (not in-law), Spouse or Registered Domestic Partner who has a Serious Health Condition (counts toward FMLA/CFRA leave entitlements except that time to care for employee’s Registered Domestic Partner does not count toward FMLA leave, only CFRA leave); or

for a Serious Health Condition that makes the employee unable to perform one or more of the essential functions of his/her job (generally counts toward FMLA and CFRA leave entitlements). There are special rules which apply only to pregnancy-related disabilities; or

for leave due to Qualifying Exigency arising out of the fact that the employee’s Spouse, Child or Parent is a covered military member who is on Active Duty in the Armed Forces, National Guard, or Reserves or who has been notified of an impending call or order to Active Duty status in support of contingency operations (counts toward FMLA leave entitlement only); or

to care for a Spouse, Child, Parent, or Next of Kin who is a member of the Armed Forces, including members of the National Guard or Reserves, who has incurred or aggravated a Serious Injury or Illness while on Active Duty that may render the servicemember unable to perform the duties of his or her office, grade, rank or rating and for which the servicemember is: a) undergoing medical treatment, recuperation, or therapy; b) an outpatient; or c) on a temporary disability retired list (counts toward FMLA leave entitlement only unless it also qualified under the second bullet point above).

Eligibility for Leave

In order to qualify for unpaid family and medical leave, other than a pregnancy disability leave, the employee must:

be employed for at least 12 months. The 12 months or 52 weeks need not have been consecutive. Separate periods of employment will be counted, provided that the break in service does not exceed seven years. Separate periods of employment will be counted if the break in service exceeds seven years due to National Guard or Reserve military service obligations or if there is collective bargaining or other written agreement in which the Company states its intention to rehire the employee after the break in service.

have worked at least 1,250 hours during the 12-month period immediately before the date when the leave is requested to commence. The hours of leave will not be counted in determining the 1,250 hours eligibility test for an employee. However, an employee returning from fulfilling National Guard or Reserve military obligations will be credited with the hours of service that would have been performed but for the period of military service.

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work in a facility that has at least 50 employees within a 75-mile radius. When there is no fixed work site for certain employees (e.g. outside sales personnel), then the work site is construed to be the home base to which affected employees report; and

provide a certification of eligibility.

Family and Medical Leave Definitions

The unpaid family and medical leave policy is administered in accordance with the following definitions:

“Active Duty” means (a) in the case of a member of a regular component of the Armed Forces, duty during the deployment of the member with the Armed Forces to a foreign country; and (b) in the case of a member of a reserve component of the Armed Forces or National Guard unit, duty during the deployment of the member with the Armed Forces to a foreign country under a call or order to Active Duty under a provision of law referred to in section 101(a)(13)(B) of title 10, United States Code.

“Child,” “Son,” or “Daughter” means biological, adopted or foster child, a step-child, a legal ward or a child to whom the employee stands in loco parentis, who is under the age of 18, or is an adult dependent child, i.e., one who is incapable of self-care because of a mental or physical disability. In the context of a Covered Servicemember or military member on Active Duty or call to Active Duty status, the terms Son or Daughter refer to a Child of any age.

“Covered Family Member” means a Child, Parent (not in-law), Spouse or under the CFRA, a Registered Domestic Partner.

“Covered Servicemember” means: (a) a member of the Armed Forces (including a member of 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; or (b) a veteran who is undergoing medical treatment, recuperation, or therapy, for a Serious Injury or Illness and who was a member of the Armed Forces (including a member of the National Guard or Reserves) at any time during the period of five years preceding the date on which the veteran undergoes that medical treatment, recuperation, or therapy.

“Final Regulations:” (a) The Revised Final Regulations issued by the U.S. Department of Labor implementing the Family and Medical Leave Act of 1993 (“FMLA” or the “Act”) effective January 16, 2009 as amended by the Family and Medical Leave Act Amendments in the National Defense Authorization Act of 2010 Conference Report 111-288, and/or (b) any applicable California state laws and regulations.

“Health Care Provider” is as described in the Final Regulations.

“Next of Kin” is defined as the closest blood relative of the injured or recovering servicemember.

“Parent” means the employee’s biological, adoptive, step, or foster parent, or any other individual who stood in loco parentis when the employee was a child. It does not include a grand-parent or parent-in-law.

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“Qualifying Exigency” means the following: (1) short-notice deployment of 7 or fewer calendar days; (2) military events and related activities; (3) childcare and school activities when the need to provide such care or attend meetings arises from the Active Duty or call to Active Duty status of a covered military member; (4) financial and legal arrangements related to the Active Duty or call to Active Duty status of a covered military member; (5) counseling; (6) time spent with the Covered Servicemember on rest and recuperation; (7) post-deployment activities or to address issues relating to Covered Servicemember’s death.

“Registered Domestic Partner” means a person who has filed a Declaration of Domestic Partnership with the Secretary of State and who meets the requirements of California Family Code Section 297 and any other applicable state or federal law.

“Serious Health Condition” means an illness, injury, impairment or physical or mental condition that includes: (1) in-patient care in a hospital, hospice or residential medical care facility, or any subsequent treatment in connection with such inpatient care, or; (2) continuing treatment by a Health Care Provider for a condition that either prevents the employee from performing one or more essential functions of the employee’s job, or prevents the individual from participating in work, school or other daily activities which includes:

(i) A period of incapacity of more than three consecutive, full calendar days, and any subsequent treatment or period of incapacity relating to the same condition, that also involves:

Treatment two or more times by a Health Care Provider, by a nurse under direct supervision of a Health Care Provider, or by a provider of health care services (e.g., physical therapist) under orders of, or on referral by, a Health Care Provider; or

Treatment by a Health Care Provider on at least one occasion, which results in a regimen of continuing treatment under the supervision of the Health Care Provider.

(ii) Any period of incapacity due to pregnancy, or for prenatal care (special rules apply); or

(iii) Any period of incapacity or treatment for such incapacity due to a chronic Serious Health Condition. A chronic Serious Health Condition is one which: (1) Requires periodic visits for treatment by a Health Care Provider, or by a nurse under direct supervision of a Health Care Provider; (2) continues over an extended period of time (including recurring episodes of a single underlying condition); and (3) may cause episodic rather than a continuing period of incapacity (e.g., asthma, diabetes, epilepsy, etc.); or

(iv) A permanent or long-term condition for which treatment may not be effective. The employee or family member must be under the continuing supervision of, but need not be receiving active treatment by, a Health Care Provider. Examples include Alzheimer’s, a severe stroke, or the terminal stages of a disease; or

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(v) Any period of absence to receive multiple treatments (including any period of recovery therefrom) by a Health Care Provider or by a provider of health care services under orders of, or on referral by, a Health Care Provider, for: (1) Restorative surgery after an accident or other injury; or (2) a condition that would likely result in a period of incapacity of more than three consecutive, full calendar days in the absence of medical intervention or treatment, such as cancer (chemotherapy, radiation, etc.), severe arthritis (physical therapy), or kidney disease (dialysis).

(vi) Absences attributable to incapacity under paragraph (b) or (c) of this section qualify for family and medical leave even though the employee or the Covered Family Member does not receive treatment from a Health Care Provider during the absence, and even if the absence does not last more than three consecutive, full calendar days. For example, an employee with asthma may be unable to report for work due to the onset of an asthma attack or because the employee’s Health Care Provider has advised the employee to stay home when the pollen count exceeds a certain level.

A “Serious Health Condition” generally will not include conditions like the common cold, the flu, earaches, upset stomach, minor ulcers, headaches, other than migraines, or routine dental problems, unless complications arise.

“Serious Injury or Illness”: (a) in the case of a member of the Armed Forces (including a member of the National Guard or Reserves), means an injury or illness that was incurred by the member in line of duty on Active Duty in the Armed Forces (or existed before the beginning of the member’s Active Duty and was aggravated by service in line of duty on Active Duty in the Armed Forces) and that may render the member medically unfit to perform the duties of the member’s office, grade, rank, or rating; and (b) in the case of a veteran who was a member of the Armed Forces (including a member of the National Guard or Reserves) at any time during a period when the person was a Covered Servicemember, means a qualifying (as defined by the Secretary of Labor) injury or illness that was incurred by the member in line of duty on an Active Duty in the Armed Forces (or existed before the beginning of the member’s Active Duty and was aggravated by service in line of duty on Active Duty in the Armed Forces) and that manifested itself before or after the member became a veteran.

“Spouse” means the employee’s husband or wife as recognized by state law.

Duration of Family and Medical Leave

Generally, employees may be granted a maximum of 12 weeks of family and medical leave in any 12-month period. If the leave is related to the Qualifying Exigency of being notified of deployment 7 or fewer days prior to deployment, an employee may take up to 7 days of leave, starting from when the Covered Family Member is provided notice of the deployment. If the leave is related to the Qualifying Exigency of spending time with a Covered Servicemember on rest and recuperation, an employee make take up to 5 days of leave for each instance of rest and recuperation.

If the leave is to care for a Spouse, Child, Parent, or Next of Kin who is a Covered Servicemember who has a Serious Injury or Illness, the maximum duration of the leave is 26 weeks in a 12-month period. Family and medical leave taken for other family and medical

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leave circumstances during the 12-month period will be deducted from the total of the 26 weeks available. In no circumstance may the total family and medical leave taken in a 12-month period exceed 26 weeks.

The 12 months will be calculated backward as a rolling 12 month from the date on which the employee uses family and medical leave. However, for leave to care for a Covered Servicemember, the 12-month period will be measured forward from the date the employee’s leave begins.

Leave for the birth, adoption or foster care placement of a Child must be concluded within one year of the birth or placement of the Child. If an employee uses less than 12 weeks to care for a newly arrived Child, the remainder of his/her 12 weeks of leave can be used for any permissible family and medical leave purpose.

If a husband and wife who are both employed by the Company request family and medical leave for the birth, adoption or foster care placement of a Child, their aggregate leave for these purposes is limited to twelve weeks. The same limitations apply to Registered Domestic Partners under the CFRA. If a husband and wife who are both employed by the Company and request family care leave to care for a Covered Servicemember, their aggregate leave for this purposes is limited to 26 weeks.

If there is a medical need, leave may be taken intermittently or on a reduced work schedule basis due to the Serious Health Condition of a Covered Family Member or the employee or the Serious Injury or Illness of a Covered Servicemember. If the need for intermittent leave is foreseeable based on a planned medical treatment, the Company reserves the right to require the employee to temporarily transfer to an equivalent position that better accommodates the recurring periods of leave.

Intermittent leave for the birth, adoption or foster care of a Child generally must be taken in two-week increments. However, the employee can take childcare leave in increments of less than two weeks on two occasions in connection with each birth, adoption or placement for foster care.

To the fullest extent permitted by law, leaves under the federal and state family and medical leave laws will run concurrently. Generally, leave runs concurrently under FMLA and CFRA provided that the leave qualifies under both statutes. If the leave qualifies under only one of the statutes, then to the extent required by applicable law, the employee’s leave entitlement under the other statute will not be affected.

Notice/Certificates for Family and Medical Leave

Employees must give the Company as much advance notice as possible of the need for family or medical leave. If the employee knows about the leave more than 30 calendar days before the leave is to commence, the employee must give the Company at least 30 days written notice. If 30 days’ notice is not possible, such as because the need for the leave is not known more than 30 days prior to its commencement, or because there has been a change in circumstances or a medical emergency, the employee must give as much notice as possible.

If the leave is for a Qualifying Exigency, the Company may require that the employee provide a copy of the military member’s active duty orders and certification providing the appropriate facts related to the particular Qualifying Exigency for which leave is sought.

If the leave is to care for a Covered Servicemember, the Company may require the employee to provide a certification completed by an authorized Health Care Provider or by a copy of an Invitational Travel Order or Invitational Travel Authorization issued to any member of the

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Covered Servicemember’s family. Additionally, the Company may require certification of the relationship to the Covered Servicemember and the Covered Servicemember’s military information.

Where the employee’s need for the leave is for planned medical treatment or supervision, he/she must consult with the Company to schedule the treatment or an intermittent or reduced schedule to minimize the disruption to the Company’s business.

When an employee notifies the Company of a need for leave under the family and medical leave laws, within five business days, the Company will notify the employee whether the employee is eligible for leave under the family and medical leave laws. If the employee is not eligible for leave under the family and medical leave laws, the notice will include a statement of the reasons for non-eligibility. If the employee is eligible for leave under the family and medical leave laws, the notice will include information on the employee’s rights and responsibilities and the number of weeks of leave the employee has available.

If an employee is eligible for leave under the family and medical leave laws, the employee will be required to provide a certificate from the Health Care Provider setting out, among other things, the expected duration of the leave and certifying that the condition warrants family or medical care. If the Company does not receive proper certification prior to commencement of the leave or within 15 calendar days of requesting the certification, the absence from work may be deemed unexcused unless the delay was caused by circumstances truly beyond the employee’s control.

The Company will notify the employee if the certification is incomplete or insufficient. The employee will then have seven calendar days to correct the identified issues with the notice.

The Company reserves the right to require a second or third opinion, at its own expense, regarding the employee’s own Serious Health Condition. Also, in certain circumstances, recertification by the doctor may be requested.

The Company will notify the employee as to whether the leave qualifies under the family and medical leave laws within five business days or receiving all of the information necessary for this determination, absent extenuating circumstances. This notice will include a statement of the amount of leave that will be counted against the employee’s available leave under each of the family and medical leave laws as well as other applicable leaves.

Generally, if given advance notice of the need for the leave, the Company will designate the leave as family and medical leave before the employee goes out on leave. However, the Company reserves the right to designate a leave as family and medical leave after the leave has begun if it learns of additional facts which allow it to make a determination while the employee is out on leave. In addition, the Company reserves the right to designate the leave as a family and medical leave after the employee returns to work if it does not have sufficient facts on which to make a determination while the employee is out on leave.

If the Company does not have sufficient information regarding why an employee is off work, it may inquire as to the reason for the employee’s absence. If the employee establishes that the absence is for a family and medical leave or other permissible leave, the time off will be treated consistent with the applicable policy. However, if the employee does not provide the requested information within 15 days of being asked or the information provided is insufficient to establish that the leave is for a purpose covered by the Family and Medical Leave Policy, the leave will be treated as an unexcused absence.

In order to return to work from a medical leave for the employee’s own Serious Health Condition, he/she must submit a release to work certification from his/her Health Care Provider.

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Upon request, the first time an employee seeks leave due to Qualifying Exigencies arising out of the Active Duty or call to Active Duty status of a covered military member, the Company may require the employee to provide: 1) a copy of the covered military member’s Active Duty orders or other documentation issued by the military indicating the covered military member is on Active Duty or call to Active Duty status in support of a contingency operation and the dates of the covered military member’s Active Duty service; and 2) a certification from the employee setting forth information concerning the nature of the Qualifying Exigency for which leave is requested. Employee shall provide a copy of new Active Duty orders or other documentation issued by the military for leaves arising out of Qualifying Exigencies arising out of a different Active Duty or call to Active Duty status of the same or a different covered military member.

When leave is taken to care for a Covered Servicemember with a Serious Injury or Illness, the Company may require the employee to obtain a certification completed by an authorized Health Care Provider of the Covered Servicemember. In addition, and in accordance with the FMLA regulations, the Company may request that the certification submitted by the employee set forth additional information provided by the employee and/or the Covered Servicemember sufficient to support the need for leave.

Benefits during Family and Medical Leave

Employees must take any accrued sick leave as part of any leave under the family and medical leave laws for their own Serious Health Condition, including a pregnancy-related condition.

Employees must also take any accrued vacation as part of any unpaid family and medical leave; special rules may apply to pregnancy disability leaves. If an employee takes paid sick leave for a condition that progresses into a Serious Health Condition and the employee requests unpaid leave as provided under this policy, the Company may designate all or some portion of the related leave taken as leave under this policy, to the extent that the earlier leave meets the necessary qualifications.

After all paid leave is exhausted, the remaining period of the leave will be unpaid. Employees will not earn vacation or sick leave during the unpaid portion of any family and medical leave.

The substitution of paid time off for unpaid family and medical leave time does not extend the length of the leaves and the paid time off runs concurrently with the FMLA/CFRA entitlement.

While an employee is taking leave under the family and medical leave laws, the Company will continue to provide health insurance benefits, including during pregnancy disability leave and childcare leave, under the same terms and conditions as if the employee were still working. The employee will be required to continue paying the employee’s portion of any premiums. While the employee is using any paid sick leave or vacation, the employee’s portion of the premium will be paid through payroll deductions. During the unpaid portion of any leave under the family and medical leave laws, the employee will be required to reimburse the Company for his or her portion of the premium and failure to make this reimbursement can result in loss of coverage. Employees may use a personal check or cashier’s check payable to the Company.

The Company’s obligation to maintain health care coverage ceases if an employee’s premium payment is more than 30 days late. If an employee’s payment is more than 15 days late, the Company will send a letter notifying the employee that coverage will be dropped on a specified date unless the co-payment is received before that date.

Employees may arrange to pay for their own life insurance premiums and premiums for any other insurance during the unpaid portion of the leave. Coverage will terminate at the end of the last period for which premiums are received.

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After the employee returns from a leave, performance and salary reviews will be extended commensurate with the length of the leave.

If an employee fails to return from a family and medical leave, he/she will normally be required to repay the portion of health insurance premiums paid by the Company during the unpaid portions of the leave. The employee will be relieved of this obligation if he/she was unable to return to work due to his/her Serious Health Condition, the Serious Health Condition of the employee’s family member or a circumstance beyond the employee’s control.

For purposes of determining eligibility for employee benefits which are based on length of service (such as the rate of vacation and sick leave accrual) employees returning from leave will be credited with all service prior to the commencement of the leave, but not for the period of the leave (or cumulative total of intermittent leaves) over 30 days.

Reinstatement

If an employee returns to work at the end of an unpaid family and medical leave which lasts 12 weeks or less, he/she will be returned to the same position held before the leave or to an equivalent position with the same or equivalent pay, benefits and terms and conditions of employment. Special circumstances apply to pregnancy disabilities. Special rules may limit the reinstatement rights of “key employees.” Key employees will be notified of their status when they apply for leave.

An employee has no greater right to reinstatement or to other benefits and conditions of employment than if the employee had been continuously employed during the unpaid family and medical leave. For example, if there is a reduction in force and an employee’s position would have been eliminated without regard to the fact that the employee is on or has taken leave, the fact that the employee is on or has taken leave will not exempt the employee from being included in the reduction in force.

If the employee fails to return to work on the next regularly scheduled workday following the expiration of the leave of absence, his/her employment will be subject to termination.

When a leave of absence was caused by the employee’s Serious Health Condition, the Company will require a fitness for duty (FFD) certificate.

Miscellaneous

All requests for family and medical leave of absence will be administered in compliance with applicable federal, state and local laws.

It is unlawful for an employer to interfere with, restrain or deny the exercise of any right protected by the family and medical leave laws.

It is unlawful for an employer to discharge, discriminate against or retaliate against any employee for exercising any right protected by the family and medical leave laws.

It is unlawful for an employer to discharge, discriminate against or retaliate against any person for opposing any practice made unlawful by the family and medical leave laws or for participating in a proceeding under or related to the family and medical leave laws.

An employee may file a complaint with the U.S. Department of Labor or file a private lawsuit against an employer to enforce his or her rights under the federal FMLA and may file a

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complaint with the appropriate state agency or file a private lawsuit to enforce his or her rights under the CFRA.

Federal FMLA laws do not affect any state or federal laws prohibiting discrimination, harassment or retaliation and do not supersede state or local laws or collective bargaining agreements providing more favorable benefits.

Pregnancy Disability Leave

In addition to the provisions above, which cover all disabilities, the following policies apply to pregnancy disability leaves. These provisions supersede the more general medical leave provisions when there is a conflict. Pregnancy disability leave will be designated as leave under FMLA, but not under CFRA.

Duration of Leave

If an employee is disabled because of childbirth, pregnancy, or a related condition, she may take a leave of absence of up to four months with medical verification of the disability. Pregnancy disability leave is not available for care of a newborn under CFRA, but only for the mother’s own disability. However, after her doctor releases the employee to work, she may apply for leave to care for her newborn.

The estimated duration of a pregnancy disability leave must be determined by the employee and her doctor. To assist in a smooth transition, employees should share this information with the Company as far in advance as possible.

Transfer Rights

An employee who is pregnant is entitled to a transfer from her current position to a less strenuous or hazardous position or duties if:

The employee provides a certification from her doctor that less strenuous work is medically advisable; and

A transfer can be reasonably accommodated by the Company.

If it is foreseeable that it would be medically advisable for a pregnant employee to take intermittent leave or work a reduced schedule, the Company may require the employee to transfer temporarily to an available alternative position that has equivalent pay and benefits, so long as the employee is qualified for the position, and the position better accommodates recurring absences than the employee’s regular job.

The employee will be reinstated to her regular job or a comparable position when the employee’s Health Care Provider certifies that there is no further need for less strenuous work, intermittent leave or a reduced schedule.

Right to Reasonable Accommodation

The Company will make a reasonable accommodation for conditions that are related to pregnancy, childbirth or related medical conditions if requested by an employee, with the advice of her Health Care Provider.

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Notice of Need for Leave, Transfer or Reasonable Accommodation

An employee must provide at least 30 days advance notice before the start of reasonable accommodation, transfer, or pregnancy disability leave if the need for the reasonable accommodation, transfer, or leave is foreseeable. If 30 days advance notice is not practicable, notice must be given as soon as practicable.

An employee requesting leave, transfer or reasonable accommodation will be required to provide, within 15 days or as soon thereafter as practical, a medical certification stating (i) the employee’s need for pregnancy disability leave, a transfer or reasonable accommodation because she is disabled by pregnancy, childbirth or a related medical condition (or because it is medically advisable), (ii) the date on which the leave, transfer or reasonable accommodation will begin and the estimated duration and (iii) a description of any requested reasonable accommodation or transfer. If an employee fails to provide a medical certification within a reasonable time under the pertinent circumstances, the requested reasonable accommodation, transfer or pregnancy disability leave may be delayed.

Benefits during a Pregnancy Disability Leave

An employee may take any accrued sick leave as part of their pregnancy disability leave. An employee may take any accrued vacation as part of their pregnancy disability leave. After all paid leave is exhausted, the remainder of the employee’s pregnancy disability leave will be unpaid.

The Company will continue to provide health benefits for an employee on pregnancy disability leave under the same terms and conditions as if the employee were still working. The employee will be required to continue paying the employee’s portion of any premiums (please see the prior section titled “Benefits during Family and Medical Leave” for further information).

For policies regarding other benefits, refer to the section of this Handbook dealing with benefits during family and medical leave. With respect to all benefits, an employee on pregnancy disability leave will be treated no less favorably than employees on other disability related leaves.

Reinstatement After a Pregnancy Disability Leave

If an employee returns to work at the end of a pregnancy disability of four months or less, she will be reinstated to the same position unless the employee would not otherwise have been employed in her same position for legitimate business reasons unrelated to the employee taking pregnancy disability leave or transfer. If an employee is not returned to the same position, she will be returned to a comparable position unless there is no comparable position available at the time she is scheduled to be reinstated or within 60 calendar days of the employee’s scheduled date of reinstatement. An employee has no greater right to reinstatement, a comparable position, or to other benefits and conditions of employment than if the employee had been continuously employed during the pregnancy disability leave. For example, if there is a reduction in force and an employee’s position would have been eliminated without regard to the fact that the employee is on or has taken leave, the fact that the employee is on or has taken leave will not exempt the employee from being included in the reduction in force.

The employee will be required to provide the Company with a fitness for duty certification from her doctor stating that she is released to return to work and indicating any work restrictions she may have. Failure to provide this certification may result in termination of employment.

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If the employee fails to return to work at the end of any authorized leave, her employment will be subject to termination, unless she is eligible for another form of leave.

Child Care Leave After a Pregnancy Disability

After the employee is released to return to work from a pregnancy disability, she may be given up to an additional 12 weeks of leave to care for her newborn (if she qualifies for that leave), pursuant to the terms of the family and medical leave policy above. The amount of child care leave will depend on whether she already has taken non-pregnancy-related medical or family leave during the past 12 months. For example, if the employee had already taken four weeks of leave to care for a seriously ill Parent, she would only be permitted to take off an additional eight weeks to care for her newborn child.

Employee Responsibilities

Furnish evidence as requested to substantiate the medical need for disability leave.

Notify the Company in the event that the need for or anticipated duration of the leave has changed.

Notify supervisor in writing or in person two weeks prior to the expiration of the leave to confirm interest in returning to work.

Notify supervisor in writing or in person if your address or telephone number changes while you are on leave.

Return to work promptly at the end of an authorized leave.

Personal Leave

Employees who do not qualify for family and medical leave or who have exhausted all of their family and medical leave may apply for a personal leave of absence. Personal leaves will be granted solely at the discretion of the Company, based on the circumstances in each case, including the needs of the business.

During a personal leave, the Company will have no obligation to pay its portion of the employee’s health insurance coverage. The employee will have the option of electing to continue his/her health insurance if he/she pays the full employer cost of the health insurance plus a small administration fee. The employee will also be required to pay the premiums for dependent coverage.

At the end of a personal leave, the Company may consider the employee for suitable positions. However, the Company cannot guarantee that the employee will be reinstated to any particular position, or at all, at the end of the personal leave. Employees on a personal leave have no greater rights to reinstatement or to other benefits and conditions of employment than if the employee had been continuously employed during a personal leave.

Military Leave

A military leave of absence is provided to eligible employees. Generally, a military leave of absence is unpaid. If you participate in annual military training, you may apply any available vacation time to the leave if you wish; however, you are not obligated to do so. When the need

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for military leave is foreseeable, you must notify your supervisor as far in advance as possible so arrangements can be made to cover your duties. If you have written authorization from your military branch for your leave, you should provide it when you request leave.

If you take a leave of absence to perform military service, you may elect to continue any existing health plan coverage for up to 24 months while you are in the military. If you do not elect to continue coverage during your military service, you have the right to be reinstated to the Company’s health plan when you are reemployed.

During military leaves of up to 30 days, the employee can continue his/her health insurance by paying his/her normal employee portion of the premiums. During military leaves over 30 days in length, the Company will have no obligation to pay its portion of the employee’s health insurance coverage. The employee will have the option of electing to continue his/her health insurance if he/she pays the full employer cost of the health insurance. The employee will also be required to pay the premiums for dependent coverage.

Upon completion of duties, you will be reinstated into your former position or into another position of equal pay and status, consistent with applicable laws. The length of time you have to report to work after your military leave ends will depend on the type of leave you have taken. Please contact [insert appropriate title] as soon as you identify the need to use this benefit for additional information regarding military leaves, including information regarding your job reinstatement rights.

Reemployed servicemembers are entitled to the seniority and all rights and benefits based on seniority that they would have attained with reasonable certainty had they remained continuously employed. Thus benefits that accrue with the length of service continue to accrue while the employee is on military leave.

Leave for Spousal Military Leave

Any employee whose spouse or registered domestic partner is a member of the Armed Forces of the United States, including the National Guard or Reserves, will be provided an unpaid leave of up to ten days while his or her spouse or registered domestic partner is on leave from deployment provided the following conditions exist:

the employee works an average of 20 or more hours per week;

the military spouse or registered domestic partner has been deployed during a period of military conflict to an area designated as a combat theater or combat zone;

the employee provides notice of the request for leave within two business days of receiving official notice that his or her spouse or registered domestic partner will be on leave from deployment; and

the employee submits written documentation that his or her spouse or registered domestic partner will be on leave from deployment during the period for which the employee is requesting leave.

Social Security

As an employee of Pindler & Pindler, Inc., you are covered under the provisions of the Federal Social Security Law (FICA). Social Security benefits are often a significant step to provide you and your family a retirement income. The amount of deduction from your wages for social

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security taxes is matched by Pindler & Pindler, Inc. The total contribution by you and Pindler & Pindler, Inc. is credited toward your social security benefits, which may be available at the time you are eligible to retire. In addition, disability and survivors benefits are financed through social security deductions.

Time Off to Vote

Pindler encourages employees to fulfill their civic responsibilities by voting. If an employee is unable to vote in a statewide election during his or her non-working hours, we will grant up to two hours of paid time off to vote.

Employees should request time off to vote from their supervisor at least two working days prior to Election Day so that the necessary time off can be scheduled at the beginning or end of the work day, whichever provides the least disruption to the normal work schedule.

Court Appearances

Jury Duty - Pindler & Pindler encourages employees to fulfill their civic responsibilities by performing jury duty services when summoned. You must provide your supervisor with a copy of your jury summons as soon as possible upon receiving the summons. You will be compensated with your full wages for one (1) business day in order to attend jury duty. Any employee summoned for jury duty will be excused for the duration of the trial. Adequate proof of service is required upon your return to work.

Either the Company or the employee may request an excuse from jury duty if, in the Company’s judgment, the employee’s absence would create serious operational difficulties.

Compulsory Court Appearances - Any employee who is compelled to appear as a witness by subpoena or other legal process shall be excused for the time required in order to give testimony.

Voluntary Court Appearances - Voluntary witness appearance on Company time must be approved by your supervisor in advance. If time off is approved, it may be granted without pay.

Time Off to Appear in Child’s School

If an employee gives the Society reasonable advance notice, he/she will be given time off without pay unless vacation credits are used in accordance with the vacation policy (1) to appear at the school of the employee’s children when the employee is required to do so by the school because a child has been suspended; (2) for up to 40 hours per school year to participate in activities at the school(s) of the employee’s children; (3) to find, enroll or re-enroll his/her child in a school or with a licensed child care provider, and (4) to address a child care provider or school emergency which is defined as (a) the school or child care provider requesting that the child be picked up, (b) a behavioral or discipline problem with the child that needs to be addressed, (c) a closure or unexpected unavailability of the school or child care provider, or (d) a natural disaster requiring that the child be kept home or picked up. If the employee is granted such time off, he/she must provide the Society with documentation from the school as proof that he/she participated in school activities on a specific date and time. Parents, step parents, foster parents or a person who stands in loco parentis (in place of the parent) may use this time.”

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Time Off for Literacy Programs

Employees with illiteracy problems may request the Company’s assistance in enrolling in an adult literacy program. The Company will not pay for such enrollment or pay an employee’s wages for participating in the program.

The Company will make a reasonable effort to accommodate such requests, but will not be required to do so if an accommodation would impose an undue hardship on the Company. The Company will make a reasonable effort to safeguard the privacy of employees who reveal an illiteracy problem. Employees who reveal an illiteracy problem shall not be subject to termination because of such disclosure.

Bereavement Leave Benefit

In the event of death in the immediate family of a regular full-time employee who has completed his 90-day introductory period, the employee will be allowed up to three (3) consecutive working days off with pay to arrange and attend the funeral. For purposes of this policy, an employee’s immediate family is defined to include his / her current spouse, father, mother, sibling(s), child, current mother-in-law / father-in-law, grandparents or grandchildren. The employee will be paid his regular base wage for each day of absence up to three (3) days upon providing satisfactory evidence to support claim. If an employee requires more than three days, he / she may request a personal leave of absence for additional unpaid time or may request the opportunity to use any accrued vacation time.

Employees who are not regular full-time employees may request up to three (3) days off without pay for bereavement leave.

Victim of Domestic Violence or Sexual Assault

The Company will provide employees who are victims of domestic violence, stalking or sexual assault time off to provide for their own or their child’s health, safety or welfare. Employees who are victims of domestic violence or sexual assault are entitled to take time off to:

obtain or attempt to obtain relief, including seeking restraining orders or other injunctive relief, to help insure their own health, safety or welfare or the health, safety or welfare of his/her child;

get medical attention for injuries caused by domestic violence or sexual assault;

get services from a domestic violence shelter, program, or rape crisis center;

get psychological counseling for a domestic violence or sexual assault related experience; or

participate in safety planning or to take other action to increase safety from future violence, including temporary or permanent relocation.

Generally, employees must give their employer reasonable advance notice that they need time off for domestic violence or sexual assault leave. However, in certain circumstances, employees may take an unscheduled leave without giving advance notice.

Certification for domestic violence or sexual assault leave may include:

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a police report which indicates that the employee was a victim of domestic violence or sexual assault;

a court order protecting or separating the employee from the perpetrator, or other evidence from the court or prosecuting attorney that the employee appeared in court; or

a report from a medical professional, domestic violence advocate or advocate for victims of sexual assault, health care provider, or counselor documenting that the employee was treated for mental or physical injuries.

Domestic violence and sexual assault leave is unpaid. However, the employee may use any accrued vacation.

The Company will maintain the confidentiality of any employee requesting domestic violence or sexual assault leave to the extent possible.

Leave to Attend Court Proceedings for the Victim of a Felony

If you, an immediate family member (spouse, registered domestic partner, child, stepchild, brother, stepbrother, sister, stepsister, mother, stepmother, father, or stepfather or the registered domestic partner of your parent) has been the victim of a violent felony, a serious felony, a felony theft or embezzlement (all as defined in the Penal Code) or other specific offences enumerated by statute, you may take time off of work in order to attend judicial proceedings related to that crime. You may also take time off of work in order to attend judicial proceedings if you are asked by the victim of the crime to appear in court. You must provide as much advance notice of the proceeding as possible and you may be required to provide documentation evidencing the judicial proceeding. You may use your accrued vacation, and sick leave time for this leave. Once your accrued vacation and sick leave are exhausted, the remaining leave will be unpaid. The Company will keep confidential any records regarding the leave.

Safety Personnel Leave

Eligible employees may take time off to serve as volunteer firefighters, reserve police officers or emergency rescue personnel during emergencies. This leave is unpaid, though the employee [can/must] use any accrued vacation time.

Employees are entitled to leave if they qualify as volunteer firefighters, reserve police officers or emergency rescue personnel. Volunteer firefighters include any person registered as a volunteer member of a regularly organized fire department that is officially recognized by the local government in which the department is located. Emergency rescue personnel include any person who is an officer, employee, or member of a fire department or fire protection or firefighting agency of the federal government, the state of California, a city, county, city and county, district, or other public or municipal corporation or political subdivision of this state, or of a sheriff’s department, police department, or a private fire department, whether that person is a volunteer or partly paid or fully paid, while he/she is actually engaged in providing emergency services.

Volunteer firefighters, reserve police officers and emergency rescue personnel may take leave only for emergency duty. There is no limit on the amount of time they may take off to perform emergency duties.

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Volunteer firefighters, reserved peace officers and emergency rescue personnel are also entitled to take up to 14 days each calendar year for fire, emergency rescue or law enforcement training.

Organ and Bone Marrow Donor Leave

Employees who donate organs or bone marrow may take paid leave (“donation leave”) as follows:

a leave of absence not exceeding 30 business days in any one-year period for the purpose of donating an organ to another person

a leave of absence not exceeding five business days in any one-year period, for the purpose of donating bone marrow to another person

The employee must provide written verification that he or she is an organ or bone marrow donor and that there is a medical necessity for the donation. The absence will not be considered a break in service for any purpose and the employee will continue to participate in group health plans in the same manner the coverage would have been maintained if the employee had been at work. The employee must use sick time or vacation leave for the first five days of bone marrow donation leave and/or the first two weeks organ donation leave. Bone marrow and organ donation leave will not count against leave available under state or federal Family and Medical Leave Acts. Donation leave may be taken in one or more segments. An employee who has taken donation leave will be restored to the position held by him/her when the leave began or to a substantially similar position unless conditions unrelated to the leave would have resulted in termination or other alteration of employment terms.

Alcohol and Drug Rehabilitation Leave

The Company wishes to assist employees who recognize that they have a problem with alcohol or drugs that may interfere with their ability to perform their job in a satisfactory manner. Employees who have a problem with alcohol or drugs and who decide to enroll voluntarily in a rehabilitation program will be given unpaid time off to participate in the program unless it would result in an undue hardship to provide the time off. If an employee requests time off to participate in such a program, the Company will also make reasonable efforts to keep the fact that the employee enrolled in the program confidential.

The availability of alcohol and drug rehabilitation leave does not prevent the Company from terminating an employee who, because of the employee’s current use of alcohol or drugs, is unable to perform his/her duties, or cannot perform the duties in a manner which would not endanger his/her health or safety or the health or safety of others.

The employee may use any accrued sick leave or vacation benefits while on leave. However, additional benefits will not be earned during the leave of absence.

Civil Air Patrol

An employee who has been employed for at least 90 days who is a volunteer member of the California Wing of the civilian auxiliary of the United States Air Force commonly known as the Civil Air Patrol may take unpaid leave of a total of 10 days per calendar year to respond as duly authorized and directed to emergency operational missions of the Civil Air Patrol. Leave for a single emergency operational mission shall not exceed three days, unless an extension is

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authorized by the governmental entity in charge of the emergency operational mission and the extension of the leave is approved by the Company.

Employees are required to give as much notice as possible of the intended dates upon which the Civil Air Patrol leave will begin and end and to provide certification from the proper Civil Air Patrol authority to verify their eligibility for the leave.

Civil Air Patrol leave is unpaid. An employee taking Civil Air Patrol leave is not required to exhaust all accrued vacation and sick leave and any other leave that may be available as part of the Civil Air Patrol leave. However, the employee can choose to use any accrued vacation time during the leave.

We will not discriminate against any member of the Civil Air Patrol because of such membership and shall not hinder or prevent a member from performing service as part of the California Wing of the Civil Air Patrol during an emergency operational mission. Upon expiration of a Civil Air Patrol leave, the employee will be restored to the position held when the leave began or to a substantially similar position unless conditions unrelated to the leave would have resulted in termination or other alteration of employment terms exercise of rights under this part by the employee.

Accepting Other Employment During Leave of Absence

If an employee accepts other employment or goes into business while on a leave of absence from the Company without prior approval of Pindler’s Human Resources Representative, the employee will be considered to have voluntarily resigned his/her employment with the Company. In addition, acceptance of outside employment may affect eligibility for other benefits.

General Entitlements During Leave

Except as otherwise provided in a particular leave policy or as required by law, the following conditions apply. All leaves of absence are provided on an unpaid basis. The period that an employee is on leave of absence is not considered time worked for purposes of determining eligibility for, or the amount of, certain benefits, such as vacation and sick leave benefits. The Company will pay for its portion of group health insurance premiums for a period of 30 days. After 30 days, the premiums for such coverage are the complete responsibility of the employee. Employees have no greater rights to reinstatement or to other benefits and conditions of employment than if the employee had been continuously employed during a personal leave.

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EXPECTATIONS OF EMPLOYEE CONDUCT

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Expectations of Conduct

Employees are expected to conduct themselves in an intelligent, mature and responsible manner. In this regard, there are certain expectations of conduct that all employees must know and follow. These expectations are designed for the protection of our employees, and for the good of the Company as a whole. Where, in the judgment of the Company, an employee’s performance or conduct does not meet our standards or expectations, the Company will take the action that it determines to be appropriate. In addition, the Company in its sole business judgment may decide to lay off, discharge or dismiss employees for any other reason that the Company deems to be in its business interests.

Employees shall be subject to disciplinary action, up to and including discharge without advance notice, for inappropriate behavior, unsatisfactory performance or inability to perform effectively in the organization. Company action in a particular case will depend on consideration of, among other things, the seriousness of the conduct, the past employment record of the employee, the circumstances surrounding the matter and the needs of the business.

It is not possible to list all the forms of behavior that are considered unacceptable in the workplace, but the following are examples of infractions of rules of conduct that may result in disciplinary or corrective action, including suspension or termination of employment:

Insubordination, including improper conduct towards a supervisor or refusal to perform tasks assigned by a supervisor in the appropriate manner.

Possession or use of alcoholic beverages or illegal drugs on Company property or appearing for duty under the influence of alcohol or drugs.

Release of confidential information about Pindler & Pindler, Inc. or its customers.

Theft or unauthorized removal of property from Pindler & Pindler, Inc. fellow employees, customers, or anyone on Company property.

Altering or falsifying any time keeping record(s), intentionally punching or recording time on another employee’s time card, allowing someone else to punch your time card, removing any time keeping records from the designated area without proper authorization or destroying such record(s).

Falsifying or making a material omission on an employment application or making erroneous entries or material omissions on Company records.

Misusing, destroying, or damaging property of Pindler & Pindler, Inc. a fellow employee, a customer, or a visitor.

Bringing on Company property dangerous or unauthorized materials, such as explosives, firearms, and / or other similar items.

Fighting or threatening violence in the workplace or while on Company property.

Leaving Company premises or one’s job during working hours without notifying your supervisor or obtaining permission.

Sexual harassment or other unlawful harassment of another employee.

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Unsatisfactory performance.

Disrespectful or improper conduct towards another employee, customer, vendor, etc.

Unauthorized use of Company property and / or equipment.

Retaliating in any way against any employee for exercising their rights guaranteed to an employee by law or by policy.

Refusal of non-exempt employees to work overtime;

Violation of safety or health rules;

Sexual or other unlawful harassment;

Excessive absenteeism or any absence without notice;

Violation of the Company’s policy regarding access to the Company’s computer system;

Violation of personnel policies;

Nothing in this policy changes the at-will nature of the employment relationship.

Policy Against Harassment

Pindler & Pindler, Inc. is committed to providing a work environment that is free of harassment. Harassment based on an individual’s sex, race, ethnicity, national origin, age, sexual orientation, religion, disability or any other legally-protected characteristic will not be tolerated. All employees are expected to abide by the policy. This policy applies to both direct, personal interactions and communications accomplished through the Company’s e-mail, voicemail, computer and online systems.

Definitions of Sexual and Other Prohibited Harassment

Sexual harassment refers to behavior of a sexual nature that is unwelcome and personally offensive to its recipients. Sexual harassment is a form of employee misconduct that is demeaning to another person and undermines the integrity of the employment relationship.

For example, unwanted physical contact, foul language of an offensive and sexual nature, sexually oriented propositions, jokes or remarks, obscene gestures or the display of sexually explicit pictures, cartoons, screen savers or other materials, or improper use of the computer system to harass others may reasonably be considered offensive to another employee and, thus, should not occur.

Other forms of prohibited harassment include verbal or physical conduct that denigrates or shows hostility or aversion to an employee because of gender, race, color, religion, age, national origin, disability, veteran’s status, marital status or any basis prohibited by law. Examples include: verbal abuse, ridicule, racial slurs, epithets and stereotyping, offensive jokes and comments, threatening, intimidating or hostile acts and displaying or distributing offensive materials, writings, graffiti, or pictures.

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Unwelcome sexual advances, requests for sexual favors and other verbal or physical conduct constitute sexual or other prohibited harassment when:

a. Submission to such conduct is made explicitly or implicitly a condition of your employment;

b. Submission to or rejection of such conduct is used as a basis for an employment decision affecting you; or

c. The harassment has the purpose or effect of unreasonably interfering with your work performance or creating an intimidating, hostile or offensive work environment.

Complaint Procedure

If you feel that you have been harassed based on your sex, race, national origin, ethnic background, or other legally protected characteristic, you should immediately report the matter to your supervisor. If that person is unavailable or if you believe that it would be inappropriate to contact your supervisor, you should immediately contact the Human Resources Representative for Pindler & Pindler, Inc.

Any supervisor or manager who becomes aware of any possible sexual or other unlawful harassment should immediately advise the Human Resources Representative for Pindler & Pindler, Inc.

A prompt investigation will be conducted and appropriate corrective action will be taken where it is warranted. Complaints will be handled as discreetly as possible, consistent with the need for an effective investigation and appropriate resolution.

Any employee engaging in improper harassment will be subject to disciplinary action, including possible termination of employment.

No person will be adversely affected in employment with the Company as a result of bringing complaints of unlawful harassment. This policy prohibits retaliation, harassment or other adverse action as a result of having brought a complaint, assisted in an investigation, opposed harassment or otherwise exercised rights protected by law. If you feel that you have been retaliated against or harassed as a result of having brought a complaint, assisted in an investigation or otherwise having exercised rights protected by law, you should immediately report the matter to your supervisor or the Human Resources Representative for Pindler & Pindler, Inc.

Any complaint of retaliation will be investigated and appropriate corrective action will be taken where it is warranted.

We encourage you to use the Company’s procedure for resolving complaints of harassment, including claims of sexual harassment, and we believe that this procedure is effective. However, you may file complaints of discrimination, including complaints of sexual harassment or retaliation for having made claims of sexual harassment, with the California Department of Fair Employment and Housing (“DFEH”). If the complaint is not resolved by DFEH, it may be heard by the California Fair Employment and Housing Commission (“FEHC”). FEHC may dismiss the complaint or may order a variety of remedies such as hiring, reinstatement, actual damages, compensatory damages or penalties. The DFEH can be contacted at 1 (800) 884-

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1684. The FEHC can be contacted at 455 Golden Gate Avenue, Suite 14500, San Francisco, CA 94102. You can contact the nearest field office of the EEOC by calling 1 (800) 669-4000. You can contact the nearest field office of the EEOC by calling 1 (800) 669-4000. You should be aware that both federal and state laws provide time limits within which complaints must be filed. Therefore, you should contact the relevant agency to determine the applicable time limit.

Use of Company Equipment

Equipment is essential in accomplishing job duties, is expensive, and may be difficult to replace. When using equipment, employees are expected to exercise care and follow all operating instructions, safety standards, and guidelines.

Please notify your supervisor if any equipment appears to be damaged, defective, or in need have repair. Prompt reporting of damages, defects, and the need for repairs or service could prevent deterioration and possible injury to employees or others. Your supervisor can answer any questions about maintenance and care of equipment.

The improper, careless, negligent, destructive or unsafe use or operation of equipment can result in disciplinary action, including termination.

Any Company equipment or other property (including computer hardware and software) in the possession of any employee must be returned to the Company immediately upon request or at the conclusion of employment.

Security Inspections

Inspections and searches may be conducted randomly or when the Company has reasonable suspicion that an individual is involved in misconduct on company premises. The inspections and searches may be with or without notice.

All areas of the Company's premises may be inspected and searched. This includes, but is not limited to: offices, desks, closets, cabinets, files, lockers, computer files, and documents. Pindler & Pindler, Inc. also reserves the right, without prior notice to search its premises thoroughly at any time and to conduct a search of any person(s), employee(s), belongings, lockers as well as suppliers, vendors or couriers entering or leaving the premises.

The Company may also inspect and search employees' personal property. This includes, but is not limited to, packages that employees may bring to or remove from the workplace. To prevent losses and to reduce the need for these searches, employees are discouraged from bringing unnecessary personal items to the workplace.

An individual’s vehicle, including the trunk, glove compartment, and containers in the vehicle are subject to search if the vehicle is parked on the Company property.

The Company may deny entry to the premises to anyone refusing to submit to a search. Failure to cooperate in a search may result in disciplinary action up to and including termination.

Use of Company Information Technology (IT) Systems

This policy outlines guidelines for responsible use of the Company’s IT Systems, and is designed to protect the Company’s information and personnel from the possible consequences of inappropriate use of Company IT Systems. The term “Company IT Systems” as used herein

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includes, but is not limited to, Company computers (desktop and laptop), networks (wired and wireless), voicemail, and telecommunications systems and devices (fixed and wireless), facsimile machines, photocopiers, printers, software, storage media (disks, CDs, USB drives), and other technologies that employees may have access to in the course of Company business. The guidelines provided in this policy apply to all Company employees, contractors, consultants, or any other persons who are provided with access to Company IT Systems in the course of providing services of any kind to the Company (“Users”).

Company IT Systems provide critical support to the Company and its staff in the achievement of the Company’s mission, and all Users of Company IT Systems are expected to use them responsibly and in compliance with Company policies and applicable laws.

Privacy and Monitoring

Users should have no expectation of privacy while using Company IT Systems. All communications sent, received, transmitted or stored on Company IT Systems are the property of the Company. In order to implement the Company information security program effectively and enforce Company policies, the Company must have the ability to monitor the use of Company IT Systems. The Company may monitor any activity on Company IT Systems and Users should use Company IT Systems accordingly. Authorized Company staff may disclose, monitor, access, review, copy, store, move, edit, delete, or otherwise manipulate any electronic information residing on Company IT Systems as is necessary to allow for the proper functioning of Company IT Systems, compliance with Company polices and applicable law, or for any other appropriate purpose. This includes, but is not limited to, the monitoring of User Internet use and e-mails, including e-mails sent through private accounts, but sent using Company IT Systems.

EMPLOYEES AND OTHER USERS SHOULD NOT USE THE IT SYSTEMS TO SEND, RECEIVE OR STORE ANY INFORMATION THAT THEY WISH TO KEEP PRIVATE. EMPLOYEES SHOULD USE THE SYSTEMS WITH EXPECTATION THAT ALL INFORMATION AND COMMUNICATIONS (INCLUDING INTERNET USE AND E-MAILS) SENT, RECEIVED OR STORED ANYWHERE IN THE SYSTEM WILL BE AVAILABLE FOR REVIEW BY THE COMPANY. COMPANY IT SYSTEMS ARE USED TO CONDUCT COMPANY BUSINESS.

Prohibited Activity

Company IT Systems shall not be used to engage in illegal, threatening, discriminatory, defamatory, slanderous, obscene, or harassing activity. Company IT Systems may not be used to solicit for any reason or for sending mass emails (“spamming”), accept when in accordance with the sales and marketing policy.

Intellectual Property and Licensing

Users of Company IT Systems must not infringe on intellectual property rights, copyrights, trademarks, or other licensing restrictions. Users must not illegally copy software, data, or other information without the express permission of its owner. Users who have questions about the licensing arrangement for any Company IT Systems should direct questions to the General Manager.

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Software Installation

Only software approved by the IT Manager may be installed on Company IT Systems. Users who wish to have software installed on Company IT Systems should direct requests to the IT Manager.

Malicious Code and Viruses

Users may not knowingly create, execute, forward, or introduce any malicious computer code (e.g., viruses, Trojans, worms) into Company IT Systems. The Company provides software tools that are designed to assist in the protection of Company IT Systems from malicious code, but Users still must be alert and take appropriate steps to limit the risk of malicious code attacks. Users may not disable any anti-virus or any other security software. If a User suspects a malicious code attack, he or she should contact the Company Service Desk immediately.

Use of E-mail and Instant Messaging Systems and Electronic Communications

Electronic communications on behalf of the Company such as e-mail and instant messages (collectively, “Electronic Messaging”) must be treated carefully. These electronic messages can be misdirected or misinterpreted causing damage to the Company, its members, staff, and others. Company e-mail and instant messaging technology do not provide data privacy while in transit over other, non-Company networks. Unless explicitly approved in advance, Users are not to use Electronic Messaging, other than those that are internal to the Company, to send or receive sensitive information that requires privacy protections.

Users should consider the following guidance when using Electronic Messaging:

demonstrate respect and courtesy when using Electronic Messaging;

do not forward chain or “spam” messages;

keep personal messages to a minimum; and

do not send hateful, angry, or otherwise inappropriate messages.

Connecting to the Company or Other Networks

Remote access to the Company network shall only be from devices approved by the IT Manager. All connections from non-Company networks (e.g., home, hotel, or registered firm networks) must be through a virtual private network (VPN) mechanism approved by the IT Manager.

Requests for connections between the Company network and non-Company networks (e.g., registered firm networks) must be approved by the IT Manager, which will conduct a thorough security assessment before setting up such a connection.

Protection of Credentials

Users shall not attempt to obtain rights or access privileges other than those specifically defined and approved for them by the IT Manager. Users should exercise their best efforts to protect their Company passwords from disclosure and prevent unauthorized access to Company IT

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Systems. Accounts and passwords are for individual use only. Employees are required to provide the Company with current Company passwords and usernames.

E-mail Etiquette

While using the Pindler & Pindler, Inc email system, you are using official Pindler & Pindler, Inc. company property. Although each employee will have an individual email account set up, your email account and all of your emails are Company property and there is no expectation of privacy with respect to an email system and all emails. Pindler & Pindler Management and email administrators have the right to read any and all email messages. The Company has, and will execute the right to monitor and / or restrict the use of our email system if it is determined that the email system is being abused by an employee or multiple employees.

Please take care to ensure that messages on behalf of the Company are courteous, professional and businesslike. Do not let the seeming informality of e-mail distract you from the fact that you are communicating on behalf of the Company. The recipients of your e-mails will form their impression of the Company based in part on the tone and quality of your e-mails. Remember, your e-mail messages may be read by someone other than the person(s) you send them to and may someday have to be disclosed to outside parties or a court in connection with litigation.

Always use care in addressing e-mail messages to make sure that messages are not inadvertently sent to outsiders or the wrong person inside the Company. Refrain from routinely forwarding messages containing Company confidential information to multiple parties unless there is a clear business need to do so.

Emails sent from an employee’s Company email account where content includes slanderous wording, vulgar wording, verbal harassments, obscenities, threatening or abusive language and statements that are deemed offensive by management may result in disciplinary action up to and including termination of employment.

The Company strongly discourages the storage of large numbers of e-mail messages for a number of reasons. E-mail messages frequently contain confidential business information and it is desirable to limit the availability of such messages. Retention of messages fills up large amounts of storage space on the network and can slow down the performance. Accordingly, employees are to promptly delete any e-mail messages they send or receive that no longer require action or are not necessary to an ongoing project.

Use of Personal Computers and Other Devices

Employees are not permitted to use their own computers, other systems (e.g., cloud computing) or devices to do Company work or to access, store or transmit data or information that is the property of the Company without express written consent of the Company. If you use your own computers or other systems or devices to do Company work or to access, store or transmit data or information that is the property of the Company, you must allow the Company to inspect, copy and delete such information at any time when requested to do so and, in any case, prior to the termination of your employment.

Use of Company Voicemail System

The voicemail system is the property of the Company. Although employees are able to use codes to restrict access to the voicemail system, it must be remembered that the Company’s

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employees are only authorized to use the voicemail system for business purposes. The Company reserves the right to access, review and disclose the contents of employee voicemail messages for any purposes, including to investigate suspected misconduct or violation of Company policies, to disclose any information as necessary to satisfy any law or governmental request, or as necessary to protect the Company’s interests.

The voicemail system is provided by the Company and employees should use it with the expectation that messages sent on Company business or with the use of Company facilities may be subject to review and disclosure. The Company may override individual passwords and require employees to disclose passwords to facilitate access to the Company voicemail system.

Enforcement

Appropriate action may be taken against a User if it is found that the User violated this policy. Discipline may range from a written warning placed in an offending employee’s personnel record to immediate termination of the employment or other relationship between the User and the Company. Further, if appropriate, a User's privileges regarding and access to Company IT Systems may be revoked or limited without notice at the sole discretion of the Company.

PayPal Usage Policy

Pindler & Pindler is committed to protect the personal and financial information of our customers. Pindler & Pindler provides an important connection with our customers. The protection of customer information is a critical part of the Pindler’s role in our commitment to our customers. This PayPal Usage Policy describes the responsibilities of all employees related to order entry.

Protection of Customer Information

Customers placing orders are routinely asked to provide their name, contact or billing information, credit card information and product information. Protection of this information is a top priority for Pindler & Pindler. This information is proprietary to the company and its disclosure could cause harm to the company and our customers. Employees must use care to protect and safeguard customer information and keep it physically secure from inadvertent disclosure.

Credit Card Information

Customers trust Pindler & Pindler with their credit card information including the credit card account number, expiration date and customer name and billing address. It is the responsibility of each employee to safeguard this information.

Credit card information is only to be collected in order to process a payment or refund transaction and for no other purposes.

Credit card information shall not be removed from the premises in any format, whether on paper, on flash drives, CDs or by electronic transmission (text, email or otherwise) except as specifically authorized by the company.

Employees are NOT to write down credit card information for any reason. PayPal is a third party payment processing company where the credit card information will be entered and processed as the customer provides it to the employee. There are no

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exceptions and any deviation of this rule will be considered a violation of the policy as a whole.

Personal Phones and Devices

Mobile phones and other devices with camera or text/email features create a security risk for a number of reasons. For instance, credit card information can be copied onto such a device and then forwarded or retransmitted, mobile phones are not encrypted and any information on them can easily be accessed if the phone is lost or stolen. As a result mobile phone and other personal devices with camera or text/email features are to be kept in a desk drawer or purse at all times during your shift. You may remove your cell phone and take it with you during breaks and meal periods; however while at your desk your cell phone must remain inside a drawer or purse at all times. There are no exceptions and any deviation of this rule will be considered a violation of the policy as a whole.

Reporting Exposure of Customer Information

Pindler & Pindler may have legal obligations to provide notification if certain types of information are accessed or acquired by unauthorized persons. Therefore, any actual or suspected loss or exposure of customer information must be reported to a supervisor immediately. It is preferred that you err on the side of reporting any suspicious activity. In addition, if there appears to be a failure in our security system, customer information may be at risk of exposure. You may become aware of a potential exposure of customer information, for example, if

A customer tells you that he or she is having problems with the credit card

The credit card is declined when you submit it for processing

The processing system requires multiple input of a card number before accepting it

You find paper notes with credit card numbers on them

A person who is not an employee of Order Processing department is present in the Call Center

You see copies or photos of credit card information being made

If any of these occur you should contact your supervisor immediately.

Training

Each employee who is assigned to Order Processing is required to review this Policy and provide written certification to the company that they understand and will comply with the Policy. Pindler & Pindler will provide initial and annual refresher training to all those relating to order processing and PayPal payments.

Consequences

Pindler & Pindler takes violations of this Policy seriously. When a Policy violation has been suspected, an investigation will be performed to determine whether a violation has in fact occurred. An assessment will be made of how and why the violation occurred. Appropriate

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disciplinary action will be taken, up to and including termination. Pindler & Pindler will report any suspected criminal activities to and will cooperate fully with law enforcement.

Social Media

The Company recognizes that employees will create and maintain personal web sites and blogs during their personal time (i.e. not during work hours) and using their personal electronic equipment. This social media policy applies to the use of (i) any personal website, including but not limited to personal sites such as MySpace and Facebook and posts on Twitter; (ii) any personal or group blog that is not maintained as part of the employee's duties for the Company; (iii) any contributions or postings to online bulletin boards, chat rooms, forums, or blogs other than as part of the employee's duties for the Company; and (iv) other similar activities.

If you discuss subjects relevant to the business of the Company or our industry in a personal blog or comments in online venues and your Company affiliation is disclosed or may reasonably be discerned, you must include a disclaimer on the blog or posting stating that the views expressed are personal views and do not necessarily reflect those of the Company.

In compliance with Federal Trade Commission (“FTC”) Guidelines, however, any online statement you make about the Company that a member of the public could construe as a “promotional message” about or endorsement of the Company or its products or services must be accompanied by a disclosure that you work for the Company, regardless of whether the comment is made on your personal Facebook page or in a more traditional online business venue. You should never represent yourself or the Company in a false and misleading way.

You are personally responsible for the content you publish in a personal capacity on any form of social media platform. Keep in mind that any of your conduct that adversely affects your job performance, the performance of fellow employees or otherwise adversely affects members, customers, suppliers, people who work on behalf of the Company or the Company’s legitimate business interests may result in disciplinary action up to and including termination.

The Company’s standard and policies, including its policies on ethical standards, disclosure of confidential information and discrimination & harassment, apply equally to communications on social media. Be familiar with these policies and ensure your postings are consistent with these policies. Inappropriate postings that may include discriminatory remarks, harassment, and threats of violence or similar inappropriate or unlawful conduct will not be tolerated and may subject you to disciplinary action up to and including termination.

Always be fair and courteous to other employees, customers, suppliers and others who work with the Company. Also, keep in mind that you are more likely to resolved work related complaints by speaking directly with your co-workers or by utilizing our Open Door Policy than by posting complaints to a social media outlet. Nevertheless, if you decide to post complaints or criticism, avoid using statements, photographs, video or audio that reasonably could be viewed as malicious, obscene, threatening or intimidating, that disparage customers, members, other employees or suppliers, or that might constitute harassment or bullying. Examples of such conduct might include offensive posts meant to intentionally harm someone’s reputation or posts that could contribute to a hostile work environment on the basis of race, sex, disability, religion or any other status protected by law or company policy.

Make sure you are always honest and accurate when posting information or news, and if you make a mistake, correct it quickly. Be open about any previous posts you have altered. Remember that the Internet archives almost everything; therefore, even deleted postings can be searched. Never post any information or rumors that you know to be false about the Company, other employees, customers, suppliers or competitors.

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Maintain the confidentiality of trade secrets and private or confidential information. Trades secrets may include information regarding the development of systems, processes, products, know-how and technology. Do not post internal reports, policies, procedures or other internal business-related confidential communications.

Do not post material that is offensive, obscene, defamatory, threatening, harassing, bullying, discriminatory, hateful, racist, sexist, infringes copyright or is otherwise unlawful.

Do not use social media while on work time or on equipment we provide, unless it is work-related as authorized by your manager or consistent with Company Policy. Do not use a Company email addresses to register on social networks, blogs or other online tools utilized for personal use.

Social media accounts used by an employee to perform employment functions on behalf of the Company belong to the Company and not to the employee. In such cases, the employee’s use of the social media account is on behalf of, at the request of, and in connection with his/her employment with the Company. All intellectual property created using social media on behalf of the Company is owned by the Company. The Company has the exclusive right to control these social media accounts.

Employees are required to provide the Company with current passwords and usernames for social media accounts used on behalf of the Company. Employees must also inform the Company should the usernames or passwords change. Employees who are granted access to perform social media functions on behalf of the Company are further required to keep the passwords and usernames of such social media accounts confidential. The Company has the exclusive and unilateral right to change passwords and block access to the social media accounts used on its behalf.

Upon termination of employment for any reason, the account will remain under the control of the Company. In such instances, the employee must relinquish control over the user names and passwords for the social media accounts. Further, the employee must relinquish any rights to access such social media accounts.

Any Company employee with questions or concerns about this policy may contact Human Resources.

Use of Corporate and Showroom Business Phones

The Company’s telephone lines are intended solely for business use and should not be used or tied up for personal calls. Accordingly, employees are not permitted to make or receive personal telephone calls during working hours unless there is an emergency. Necessary calls should be made during break periods or the meal break whenever possible. No personal long distance or toll calls are to be charged to the Company’s phone.

Personal Cell Phone

With the exception of meal and break periods employee’s personal cellular phones and pagers are to remain off during working hours. Personal cellular phones may be used during an employee’s meal and / or break period in a break room or outside the building only.

Cell Phone/Mobile Device Usage While Driving

Employees must adhere to all federal, state or local rules and regulations regarding the use of cell phones and mobile devices while driving. If you are not sure whether the use of a cell

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phone or mobile device while driving is prohibited in a particular area, please check with your supervisor. Employees should not use hand-held cell phones or mobile devices for business or personal purposes while driving. Should an employee need to make a business or personal call while driving, he/she should locate a lawfully designated area to park and make the call or use a hands-free speaking device such as a speakerphone/earpiece. Employees should not text, send or read e-mail or browse the web on their hand-held cell phones or mobile devices while driving.

Drugs, Alcohol, Marijuana, and Other Substance Abuse

It is the policy of Pindler & Pindler, Inc. to prohibit the use, purchase, sale, dispensing, distribution, transfer, possession, or manufacture of illegal drugs and narcotics or alcoholic beverages or being under the influence of such substances while on its premises or performing duties for Pindler. This prohibition also covers all legal or prescription drugs which impair employees’ ability to perform their job safely and properly. Many states, including California, where our corporate office is located, recognize the use of marijuana for medicinal purposes when prescribed for a patient by their doctor and, more recently, for recreational purposes. These state laws do not change our right as an employer to require no employee be under the influence of alcohol, drugs (illegal or prescription) while at work. This policy applies to Company employees and contractors. Anyone in violation of this policy will be subject to disciplinary action, including immediate termination.

The following are guidelines regarding this policy:

1. Employees will be subject to disciplinary action up to and including immediate dismissal, for bringing illegal , non-prescribed drugs and narcotics or alcoholic beverages to work; being under the influence of such substances while working; using them while working; dispensing, distributing, or illegally manufacturing or selling them on company premises and work sites. Employees, their possessions, and Company issued equipment and containers under their control are subject to search and surveillance at all times, with or without prior notice while on Company premises or while conducting Company business. The Company may deny entry to the premises to anyone refusing to submit to a search. Failure to cooperate in a search may result in disciplinary action up to and including termination.

2. Any supervisor who notices an employee demonstrating unusual behavior patterns which appear to be drug, narcotic, or alcohol related should report the observed behavior to your Human Resources Representative.

3. If there is reasonable suspicion that an employee is under the influence of drugs, narcotics, or alcohol on Company premises the employee will be required to leave the premises. The Human Resources Representative will arrange to have such employees escorted home.

4. Employees who must use prescribed drugs or narcotics during work should report this fact to the Human Resources Representative along with acceptable documentation. A determination will then be made as to whether the employee is able to perform the job assigned safely and properly.

5. The Company may conduct unannounced searches for illegal drugs, marijuana or alcohol in Company facilities. Employees are expected to cooperate in the conducting of such searches. Searches of employees and their personal property, including but not limited to desks, lockers, packages, purses and backpacks, may be conducted when there is reasonable suspicion to believe that the employee or employees are in violation

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of this Policy. Employees should therefore have no expectation of privacy in the work place, with the exception of rest rooms and areas considered as “changing rooms”. An employee's consent to a search is required as a condition of employment and the employee's refusal to consent shall result in termination, even for a first refusal.

6. Employees experiencing problems resulting form drug, narcotic, or alcohol abuse or dependency are encouraged to seek rehabilitative help which is available through our medical insurance program. Counseling for dependency related problems will be kept confidential and is to have no influence on performance appraisals. Job performance alone, not the fact that an employee seeks counseling, will be the basis of all performance appraisals.

7. An employee may be granted leave of absence to undertake drug or alcohol rehabilitation treatment. The policy of accommodation does not prevent enforcement of Pindler’s “Expectations of Conduct” policy.

Safety and Security

Establishment and maintenance of a safe work environment is the shared responsibility of the Company and employees at all levels of the organization. The Company will attempt to assure a safe environment in compliance with federal, state and local safety regulations.

All employees are expected to obey safety rules and to exercise caution in all of their work activities. Employees shall not engage in any conduct which jeopardizes the health and safety of themselves or others in the workplace. Violations of safety standards or conduct that show either a disregard for safety concerns or negligent or reckless conduct may result in disciplinary action.

Employees should and must immediately report any unsafe conditions or conduct to their supervisor and the Personnel Department, so that the problem can be corrected as promptly as possible. This can occur without fear of reprisal in any form.

All accidents that result in injury must be reported to the appropriate supervisor and the Personnel Department, regardless of how insignificant the injury may appear. Such reports are necessary to comply with laws and to initiate insurance and workers’ compensation procedures. The Company will investigate injuries when and in the manner that it determines appropriate. This may involve a physical inspection of the location where an injury occurred, the circumstances that led to the injury or illness, and whether specific procedures, practices, or preventative measures could have helped to reduce or eliminate the danger or prevent the injury.

Workplace Security and Violence Prevention

The Company is committed to providing a workplace that is free from acts of violence or threats of violence. In keeping with this commitment, the Company has established a policy that provides “zero tolerance” for actual or threatened violence against co-workers, visitors, or any other persons who are either on our premises or have contact with employees in the course of their duties. Security and safety in the workplace is every employee’s responsibility.

Compliance with this anti-violence policy is a condition of employment. Due to the importance of this policy, employees who violate any of its terms may be subject to disciplinary action, up to and including immediate termination.

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Every verbal or physical threat of violence must be treated seriously and reported immediately to the employee’s supervisor and Human Resources. Additionally, employees should alert their supervisors when they become aware of workplace security hazards. When an employee becomes aware of imminent violence, the threat of imminent violence, or actual violence, emergency assistance must be sought immediately. In such situations, the employee should immediately contact Human Resources and, if appropriate, contact law enforcement by dialing 911.

Reports will be investigated, and appropriate corrective action will be taken. This policy prohibits retaliation, harassment or other adverse action because you made a complaint, assisted in an investigation, opposed discrimination or otherwise exercised rights protected by law.

If it is determined that an employee violated this policy by threatening another individual with violence or engaging in violent behavior, Human Resources will determine the appropriate disciplinary action, up to and including immediate termination.

Weapons

Employees are forbidden from carrying and/or possessing weapons of any kind while in the workplace or while performing work duties. Weapons include, but are not limited to, guns, knives with blades over three inches in length, swords, 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, including parking lots, or in any location in which the employee represents the Company for business purposes.

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

Smoking

In keeping with the Company’s intent to provide a safe and healthy work environment, employee smoking is prohibited in all Company facilities.

Solicitations and Distribution of Literature

In an effort to assure a productive and harmonious work environment, persons not employed by the Company may not solicit or distribute literature in the work place at any time for any purpose.

The Company recognizes that employees may have interests in events and organizations outside the work place. However, employees may not solicit or distribute literature concerning these activities during work hours.

Distribution of such materials at any time is prohibited if it interferes with access to Company premises, if it results in litter, or it is conducted in areas where other employees are working. Solicitation during non-work time, i.e., lunchtime, or other such non-work period when employees are properly not engaged in performing their work tasks, is otherwise permissible. However, posting of written solicitations on company bulletin boards is not permitted, nor may employees use other company property or facilities for solicitation or to conduct any personal business enterprise—for example, stationery, photocopiers, messenger service, or telephones.

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Outside Employment

Pindler & Pindler, Inc. requires all employees to meet the standards of performance for their positions and to comply with the demands of their work schedules. Generally, if you can effectively meet the performance standards for your position with Pindler & Pindler you may hold another job with a different employer. However, we will not make exceptions to performance standards or scheduling requirements for employees who have other jobs.

Before accepting employment or creating a business relationship with another person or employer, you must inform management. Employees should not accept outside work with any person or authority that competes with the Company or that creates a conflict of interest or a risk of other harm to the Company’s business interests, or which in any way interfere with employee’s work for the Company.

Conflicts of Interest

To ensure that the Company’s interests and reputation are not compromised, employees must avoid both actual conflicts of interest and any appearance of a conflict of interest. Employees must not allow any situation or personal interest to prevent the employee from exercising independent judgment or from acting solely in the best interests of Pindler & Pindler. Any employee who allows an actual or apparent conflict of interest to arise or who fails to act in the best interests of the Company may be disciplined or terminated.

A conflict of interest is a situation in which an employee’s personal interests (or those of the employee’s friends or family) are inconsistent with the interests of the Company, so that the employee’s ability to act solely in the best interests of Pindler & Pindler, Inc. is placed in doubt, giving recognition to the frailties of human conscience and the instinctive force of self-interest.

Employees must notify the Company of any potential conflicts of interest.

Business Activities

Any work that an employee performs for or on behalf of a competitor, supplier, customer, or anyone else who seeks to do business with Pindler & Pindler, Inc. is a conflict of interest, whether the work is done as a consultant, employee, or even as a volunteer. An employee may not sell or otherwise support the sale of any product that competes with the Company’s products.

Employees may not accept or solicit any gift, favor, or gratuity from anyone who does business or seeks to do business with Pindler & Pindler, Inc., except in accordance with Company policy on gratuities, gifts and favors.

Employees are prohibited from conducting business with relatives without prior approval.

Personal Relations

Employees who make or influence hiring decisions should avoid any preference for (or the appearance of a preference for) hiring friends or relatives. Likewise, employees may not seek to

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give company business to a family member or to an entity associated with the employee or a family member, except with approval of Curt R. Pindler after full disclosure of the relationship.

Employment of Relatives

Employees’ relatives will not be eligible for employment with Pindler & Pindler, Inc., where potential problems of supervision, safety, security, morale, or potential conflicts of interest exist. Relatives include an employee’s parent, child, spouse, brother, and sister, in-laws, step relationships and domestic partnerships.

If two employees marry or become related, and the potential problems noted above exist, only one of the employees will be permitted to stay with Pindler & Pindler, Inc., unless reasonable accommodations can be made to eliminate the potential problems. The decision as to which relative will remain with Pindler & Pindler, Inc., must be made by the two employees within 30 calendar days. If no decision has been made during this time, both employees may be terminated.

Confidentiality Policy

While you are employed with Pindler & Pindler, Inc., you will be exposed to and work with information and materials which have substantial competitive value to the Company and its clients. This information is considered highly confidential and may also consist of “trade secrets.” Pindler & Pindler and their clients consider such confidential information including “trade secrets” to be their property, and must take steps to protect their exclusive rights to such property, including obtaining each employee’s agreement to abide by the terms of this Confidentiality policy.

As a part of your accepting employment with Pindler & Pindler, you agree not to disclose any of the confidential information including “trade secrets” of the Company or any of its clients. You agree to continue to maintain the confidentiality of this information forever and not to use it for your own purposes outside of your employment, even if you later leave your employment with the Company. You further agree to discuss confidential information including “trade secrets” only with other employees at Pindler & Pindler or its clients who have a need to know the information to perform their job duties or to assist you in performing your job duties. You agree not to disclose confidential information including “trade secrets” to any other persons.

Confidential information includes, but is not necessarily limited to, marketing and advertising strategies and/or plans; areas of research and development; project work; testing and evaluation procedures; cost and pricing information; the customer lists, practices or media buying habits or plans of the Company’s clients or suppliers; any other special concepts, information or technique peculiar to the Company or its clients; and any tangible information in the form of ideas, drawings, letters, memo, conference reports, pictures or other materials relating to the business of the Company or their clients. Security precautions should be taken to protect these items from unnecessary disclosure. If you are uncertain whether or not information is confidential or a “trade secret”, then you should not disclose the information to anyone without first obtaining clarification from your supervisor.

Accidental disclosure of confidential information including “trade secrets” can be as harmful as intentional disclosure. The safest practice is to simply avoid any discussion of confidential information with anyone other than Company or client employees who need to know for the successful conduct of the business.

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Please watch your conversations in public places where you may easily be overheard and with vendors, suppliers, salespeople, family and friends. Others may not understand the need for protecting information and may unexpectedly disclose such “trade secrets” or confidential information.

If at any time you have questions regarding the scope of this policy or the appropriate manner of handling confidential information, please discuss them with your immediate supervisor.

Employee Grievances

In every organization there can be honest differences of opinion about working conditions, discipline, rules, and other employee problems. A grievance is the dissatisfaction an employee feels when the employee believes rightly or wrongly that the employee has not been treated fairly, or that a mistake has been made concerning a term or condition of employment or the administration of a rule or policy.

For problems other than incidents of sexual and other illegal harassment, it is particularly important that employees first discuss any problem relating to their job with their immediate supervisor. This procedure is intended to resolve workplace problems and questions informally and as expeditiously as possible.

If an employee cannot discuss the problem with the assigned supervisor, then the problem should be discussed with Human Resources Representative for Pindler.

State law provides that employees are employed on an at-will basis. Based on the provisions of state law and the Company’s policies, employees are free to sever their employment relationship with the Company at their option at any time, either with or without cause or advance notice. In the same manner, the Company reserves the right to terminate its employment relationship with any employee at will, either with or without cause or advance notice. Nothing in this grievance procedure is intended to create an express or implied agreement that alters the employment-at-will relationship that exists.

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END OF EMPLOYMENT PROCEDURES

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Separation Procedures

Either you or the Company may terminate the employment relationship at any time, with or without notice and with or without cause. While it is not required, we do request that if you elect to resign, you give as much advance notice as possible (preferably at least two weeks) to allow the Company to plan for your departure.

An exit interview will normally be scheduled on the last day of work. The purposes of the exit interview are to review eligibility for benefit conversion, to ensure that all necessary forms are completed, to collect any Company property (including keys, credit cards, Company or client equipment and Company documents and records) that may be in the employee’s possession, to review the Employee’s obligations regarding confidential information, and to provide the employee with the opportunity to make any constructive comments and suggestions on improving the working environment at the Company. We appreciate receiving your candid opinion of your employment with us. Final pay, including pay for any earned but unused vacation time, will be provided in accordance with state law.

Pindler & Pindler, Inc. does not maintain a formal severance pay policy or provide severance pay to employee’s who separate from its employ for any reason. Severance pay should therefore not be expected. However, the Company reserves the right to make exceptions to this policy in its sole and absolute discretion.

Employees will receive their final paycheck within the time required by law. The final paycheck for employees who resign with at least 72 hours advance notice will be provided on their last day of work. Employees who resign without providing at least 72 hours advance notice, will receive their final paycheck within 72 hours of their resignation. Employees who are terminated involuntarily will be provided their final paycheck on their last day of work.

Return of Company Property

Employees must return all company property to the Company promptly upon termination of employment or on demand. This includes, without limitation, originals and copies of all records, papers, manuals, drawings, and documents which the employee created or received in connection with his/her employment, whether or not such materials contain confidential information, as well as all tangible company property, including, but not limited to, keys and passes, credit cards, employee handbooks, computer hardware and software. It also includes all data stored electronically related to the Company, its business or its customers, including, without limitation all electronically stored confidential information. Employees must, on termination of employment or on demand, permit a representative of the Company to access all data stored on any personal computer, laptop, PDA, telephone or other electronic device or storage media that the employee has used in any fashion in connection with work for the Company and to permanently remove, copy and/or delete any data belonging to the Company or related to the Company, its customers or its business.

Continuation of Medical Benefits/COBRA Insurance

The Federal Consolidated Budget Reconciliation Act (COBRA) is the legislation that provides employees and their covered dependents the right to continue their group health care coverage after a qualifying event. Similar legislation (Cal-COBRA) applies to California employers of two (2) to nineteen (19) employees.

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Upon termination from Company for any reason, including a voluntary quit, but excluding termination for gross misconduct, an employee has the right to continue group medical coverage at group rates. Under COBRA/Cal-COBRA, you will usually pay the full cost of coverage, including all dependents, at group rates, as stated on the current monthly bill, plus an administration fee.

We will provide you with a written notice describing rights granted under COBRA or Cal-COBRA when you become eligible for coverage under our group health insurance plan(s).

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Index

- A -

Access to Personnel Files, 4

- B -

Bereavement Benefit, 33 Business Activites, 51

- C -

California State Insurance Benefits, 16 Categories Of Employment, 7 Cellular Telephone Use Policy, 47 Confidentiality Policy, 52 Conflicts Of Interest, 51 Court Appearances, 32

- D -

Drugs, Alcohol, And Other Substance Abuse, 48

- E -

Email Policy, 43 Employee Attendance, 9 Employment At Will, 3 Employment Of Relatives, 51 equal opportunity employment, 4 Expectations of Conduct, 37

- H -

Health Benefits, 15 Holiday Benefits, 18 Hours Of Work, 9

- I -

Immigration Law Compliance, 3

- M -

Make-Up Time Policy, 11 Meal Breaks, 11

-O -

Open Door Policy, 5 Outside Employment, 50

- P -

Pay Deductions And Setoffs, 9 Paydays, 9 Performance Evaluation, 12 Personal Relations, 51 Profit Sharing Benefits, 18

- R -

Rest Breaks, 11

- S -

Safety and Security, 49 Separation Procedures, 54 Sick Leave Benefit, 18 Smoking, 50 Social Security, 32 Solicitations And Distribution Of Literature, 50

- T -

Telephone Use Policy, 47 Time Cards, 8 Time Off For Literacy Programs, 33 Time Off To Vote, 32

- U -

Use Of Company Equipment, 40 Use of Company Information Technology

(IT) Systems, 40

- V -

Vacation Benefits, 17 Voicemail System, 43

- W -

Workers’ Compensation, 15