Handbook Template 20172

For an employee’s FMLA eligible absence from work to be excused when no other time off policyapplies, compliance with providing documentation of reason may be required. Failure to providedocumentation may cause the time off to be unexcused. When an FMLA eligible reason exists,employees may not reserve or decline leave until a later date in order to avoid certification requirementsor save up time off. For a refusal to provide documentation, employees may be subject to disciplinaryaction or their leave declined for failure to comply with FMLA procedure and the time off be consideredunexcused. When applicable because of the reason for leave, information related to ADA or a workerscompensation injury may be requested or reviewed under those procedures to verify the reason for leave.At its discretion and at its own expense, the Company may require a second medical opinion to verifythe reason for leave, and if the first and second opinions differ, a third medical opinion. The thirdopinion will be provided by a health care provider approved jointly by the employee and the Companyand will be binding.The Company may also require re-certification periodically during a leave. Employees will not begranted an FMLA leave to gain employment or work elsewhere, including self-employment. Employeeswho misrepresent facts in order to be granted an FMLA leave will be subject to immediate termination.RETURN FROM LEAVEIf you do not return to work as of the exhaustion of the 12 workweeks, or sooner if approved leave endswhen the reason for approved leave ceases to exist (even if prior to the exhaustion of leave allotment),continued absence from work will be addressed under Company attendance policy or other applicableleave policies. If circumstances of your leave change and you are able to return sooner than expected youare required to contact your manager at least two workdays prior to the date you intend to report to work.If on FMLA leave for a reason #2 above, as soon as the treating physician releases you to perform youressential job functions or your family member no longer needs your care you are expected to notify theCompany immediately and return to work on the next scheduled workday.If fitness for duty certification is required at the end of leave by the Company, the certification shouldaddress an employee’s ability to perform the essential functions of their position. This certificationshould be limited to the health condition that required leave, and the Company must provide theemployee with a list of essential job functions at the time leave approval is provided to the employee.Unless you are considered a “key employee”, you will be returned to your former or equivalentconditions of employment upon return from authorized leave under the requirements of FMLA,assuming other requirements of leave have been fulfilled. Employees who have used, are anticipatinguse or are currently on FMLA leave will be regarded in the same light as other employees. The Companywill not tolerate any discrimination towards employees related to their use of/need for FMLA leave.STATE/LOCAL ADDITIONAL LEAVE REQUIREMENTSADD ANY ADDITIONAL STATE REQUIRED LEAVE POLICIESHOLIDAYS OBSERVEDThe following are days on which the workplace may be closed in observance of a holiday.  New Year's Day 50

 Memorial Day  July 4th (Independence Day)  Labor Day  Thanksgiving Day and the Friday following  Christmas DayWhen one of the above holidays falls on a day that the business or segments of the business wouldnormally be closed anyway, management will determine the observance and a notice will be posted inadvance. There may be occasions based on the operating needs of the business where a holiday cannot beobserved, or certain departments of the business may still be operating on a day when the holiday may beobserved.To be eligible for holiday pay for a holiday workplace closure, an hourly employee must be full-time andwork his/her complete assigned work shift falling immediately prior and after the observed holiday orhave an acceptable excuse (e.g. an employee who works Monday through Friday would need to work allof Friday and Tuesday around a Monday observed holiday to be eligible for holiday paid time off for theholiday). Hourly and Salaried employees will not be paid holiday pay for any holiday closures while onunpaid leave (e.g. military, FMLA) or when the observed holiday falls on a day when the employeewould not otherwise have been scheduled to work. Paid holiday time off is not considered hours workedfor overtime calculation purposes.The Company recognizes that some employees may wish to observe, as periods of worship orcommemoration, certain days that are not included in the normally observed holidays. Accordingly,employees who would like to take a day off for those reasons may do so if it will not unduly disrupt theCompany’s business or impose an undue hardship and if the absence is approved through normalattendance policy procedures. Employees may use accrued paid time off for these occasions if available,or may take the time off as unpaid as allowed by law.HOURLY EMPLOYEESObserved holidays are only paid to eligible full-time hourly employees who have completed ninety (90)calendar days of continuous employment with the Company. Eligible hourly employees will be paid forthe number of hours normally worked per day up to eight (8) hours for each observed holiday at theirstraight time hourly rate. Employees on approved paid time off when the observed holiday occurs willreceive holiday pay for the day, but not both paid time off and holiday pay together.SALARIED EMPLOYEESSalaried employees will be eligible for observed holidays beginning at hire. Salaried employees are paidnormal wages for the observed holiday, either paid as regular wages or holiday wages.PAID TIME OFF (PTO)Paid time off provides employees with an opportunity for rest, relaxation, personal activities or for use assick time. The Company will grant PTO time in the amounts and schedule noted below to activeemployees who are full time. PTO amounts are granted starting at hire based on the time periods listed(see below), but PTO time granted is not available for use until the completion of the introductoryperiod. 51

PTO will continue to be granted while an employee is on USERRA applicable Military leave.PTO amounts for eligible full time employees PTO Amounts grantedLength of Continuous Employment # hours per month(up to # hours/year)During ## year of employment # hours per month (up to # hours/year)After the # year of employment # hours per month (up to # hours/year)During the # year of employmentPTO USAGE PROCEDURE  Requests for use of PTO must be submitted by the employee to their manager at least one month prior to date of desired use.  PTO usage dates will be scheduled at a time mutually agreeable to the employee and their manager. Subject to the discretion of their manager, an employee will be given preference in the scheduling of PTO in the order of length of employment. Consideration will be given to honor an employee's request for PTO scheduling, however, workload may not permit more than one employee on PTO at one time and time off may be postponed or scheduled accordingly by the manager. PTO cannot be taken in consecutive weeks unless approved by the employee's manager.  When PTO is to be applied for absences related to illness, the Company reserves the right to request documentation to verify the need to miss work (see attendance policy for specific requirements).  PTO hours used are not considered hours worked for overtime purposes as defined under the FLSA.  If a salaried or exempt employee misses work for personal reasons or illness, and has PTO available, the PTO may be applied to the time missed in lieu of regular wages as allowed by law. This may also apply for hourly and/or other non-exempt employees.  Once PTO has been exhausted additional time off will be unpaid unless covered by alternate paid time off policy or required otherwise by applicable law.ADD ANY STATE RELATED REQUIREMENTS FOR USE OF PTO, or ALTER BELOWACCORDING TO STATE REQUIREMENTS ON PAYMENT AT TERMINATION, ETC.  If employees use more PTO than had been granted at the time of separation of employment, the overpaid amount will be deducted from the employee’s final paycheck as allowed by law.  Unused PTO may /may not be carried over to the following calendar year. PTO year end rollover is capped at a maximum of # hours.  Unused PTO may be cashed out/is forfeited if unused before separation of employment, unless required otherwise by law. If paid out at separation, any PTO will be applied to the time period following last date worked based on the amount of PTO remaining (e.g. if employee last works on a Friday and has 40 hours remaining, that 40 hours would apply to the following 40 hours of normally scheduled work). 52

 If payout of remaining PTO is allowed at separation, employees who resign of their own accord or are laid off due to lack of work available may be paid remaining PTO as long as required advance notice of resignation is provided and actually worked. PTO cannot be used to fulfill resignation notice period in lieu of time actually worked. Unused PTO is not paid out to employees terminated for misconduct. EMPLOYEE BENEFITSThe descriptions in this handbook of the employee benefits, insurance policies, etc, are for generalinformation only. In all cases, the insurance policies or the written plan documents are thecontrolling legal documents, and they determine eligibility, benefits, conditions, limitations, andall other details. For more information on these plans and benefits, you should consult yourmanager or benefits representative.RETIREMENT BENEFIT PLANThe Company offers a 401k-retirement plan that employees may participate in upon completion of the401k eligibility requirements.A detailed explanation of specific benefits of this retirement plan is available in the plan summary givento new employees. To start a 401k retirement savings plan there are forms that must be filled out by theemployee and returned to ABC. Payroll deductions will generally begin by the first payroll of the monthafter the employee applies and is eligible.SECTION 125Our Company provides a cafeteria plan that is available to all full time employees. Please see theSummary Plan Description for benefits, exclusion and maximums.  Premium Only Plan – You may choose to pay for any portion of health, dental and certain supplemental benefits through this plan. These premiums could be withheld from your paycheck before taxes are taken. This saves you money.  Dependent Care Plan – Allows you to pay for dependent care expenses pre-tax.  Healthcare Flexible Spending Plan – Allows you to pay for eligible healthcare expenses that are not covered by your healthcare plan with pre-tax dollars.  Transit – Allows you to establish a pre-tax account from which you will be reimbursed for eligible Parking and Mass Transit Expenses. Limits set by IRS.COBRAEligibility for COBRA to continue certain employee benefits after a qualifying event is determined andregulated by Federal and or State law and eligibility may vary based on the type of benefit, Company 53

size, or the type of qualifying event or other criteria. If you have questions about COBRA eligibility,please contact your manager or onsite HR personnel.SOCIAL SECURITYThe Company makes deductions for Social Security from your paycheck. The Company contributes toyour Social Security account, dollar-for-dollar, the same amount as you do. Social Security benefits arepaid for death, total disability and retirement if you have been covered by Social Security long enough tobe eligible. It is important for you or your survivors to contact the nearest Social Security Office as soonas possible if any claim is to be filed. You may find out additional information by visiting the SocialSecurity Office’s website.EDUCATIONAL ASSISTANCEABC Company recognizes that the skills and knowledge of its employees are critical to the success ofthe organization. The educational assistance program encourages personal development through formaleducation so that employees can maintain and improve job-related skills or enhance their ability tocompete for reasonably attainable jobs within ABC Company.The Company may provide educational assistance to all eligible employees who have completed[minimum period of service] days of service in an eligible employment classification (see yoursupervisor for more information). To maintain eligibility employees must remain on the active payrolland be performing their job satisfactorily through completion of each course. Please note there is a [##]person cap on the number of employees that the Company is able to provide this benefit to per year.Eligible employees should apply as soon as possible for earliest consideration. Employees wishing to applyfor this benefit must provide documentation to include at a minimum the cost and dates of the course. Atcompletion of the course, the employee must provide documentation of the successful completion of thecourse with a grade of at least a “C”.While educational assistance is expected to enhance employees’ performance and professional abilities,the Company cannot guarantee that participation in formal education will entitle the employee toautomatic advancement, a different job assignment, or pay increases.ABC Company invests in educational assistance to employees with the expectation that the investmentbe returned through enhanced job performance. Accordingly, at the time of reimbursement approval, theemployee must sign and agree with the terms of a written promissory note regarding repayment proceduresshould employment end within one year of the reimbursement. Employees whose employment ends due toemployee resignation or termination for cause within one year of the of reimbursement will be required torepay the amount of the reimbursement within the time period set by the promissory note. Failure to repayunder the promissory note terms may result in legal action by Somerby.EDUCATIONAL LEAVEThe Company provides educational leaves of absence without pay to eligible employees who wish totake time off from work duties to pursue course work that is applicable to their job duties with theCompany. Employees in the following employment classification(s) are eligible to request educationalleave as described in this policy: 54

 Regular full-time employeesEligible employees who have completed [# number of days] calendar days of service may requesteducational leave for a period of up to [# number of days] days every [# number of years] years.Requests will be evaluated based on a number of factors, including anticipated workload requirementsand staffing considerations during the proposed period of absence.Subject to the terms, conditions, and limitations of the applicable plans, the Company will continue toprovide health insurance benefits for the full period of the approved educational leave provided thatemployee is responsible for all premium due during their leave. [or] provided that employee isresponsible for the employee portions of premiums due during the leave period.Benefit accruals, such as vacation, sick leave, or holiday benefits, will be suspended during the leave andwill resume upon return from leave.When an educational leave ends, every reasonable effort will be made to return the employee to the sameposition, if it is available, or to a similar available position for which the employee is qualified.However, Company cannot guarantee reinstatement in all cases.If an employee fails to report to work at the end of the approved leave period, Company will assume thatthe employee has resigned.All ABC Company employees will have access to additional benefits on a 100% employeecontributory basis through ABC. Employees applying for insurance related benefits will besubject to underwriting approval from the respective insurance companies and are responsible forthe full costs of the benefits. 55

HANDBOOK AND COMPANY POLICIES RECEIPT AND ACKNOWLEDGMENTI understand that the information contained in this handbook and company policies represents guidelinesonly and that the Company reserves the right to modify or terminate this handbook or any policy,procedure, rule or regulation at its discretion and without notice. I acknowledge that I have received acopy of the Company Policies and Employee Handbook. I understand that I am to read and be familiarwith this information and I am required to abide by the policies within as an employee of the Company.I understand that this handbook is not a contract of employment between the Company, and myself, andthat I should not view it as such. I understand that no manager of the Company, other than the President,has any authority to enter into any agreement guaranteeing employment for any specific duration. Iunderstand my employment may be terminated with or without notice. I understand that the Company isan \"at will\" employer and employment with the Company is not for a fixed term or definite period andmay be terminated at the will of either party, with or without cause and without prior notice. Iunderstand that I may resign my employment at any time.____________________________________Print Name of Employee____________________________________Signature of Employee____________________________________Date 56