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ASSOCIATE HANDBOOK

Manufacturing and Distribution Facilities Approved by: Gary Heiman, President and Chief Executive Officer Effective September 1, 2015

Manufacturing and Distribution Facilities Handbook |

Effective September 1, 2015 |

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STANDARD TEXTILE CO., INC.

RECEIPT FOR ASSOCIATE HANDBOOK I agree to abide by all Company rules and regulations as shown in the Associate Handbook, a copy of which I have received. It is my responsibility to read the handbook and to ask questions about anything I do not understand. I UNDERSTAND THAT THIS HANDBOOK IS NOT A CONTRACT AND ONLY EXPRESSES GUIDELINES REGARDING COMPANY POLICIES. I UNDERSTAND AND AGREE THAT MY EMPLOYMENT WITH THE COMPANY IS AT-WILL, AND THAT MY EMPLOYMENT AND COMPENSATION CAN BE TERMINATED AT WILL BY EITHER THE COMPANY OR MYSELF AT ANY TIME, FOR ANY OR NO REASON WITHOUT NOTICE. I also understand that no one, other than the President and Chief Executive Officer of the Standard Textile Co. Inc., has any authority to enter into any agreement for employment for any specified period of time or to make any agreement contrary to the foregoing, and he may do so only in writing. Everything in this handbook supersedes all other handbooks and policies. This is the entire agreement between the Company and me on these issues, and it cannot be modified except by a new agreement, in writing and signed by the President of Standard Textile Co. Inc. Print Name Signature Date



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TABLE OF CONTENTS

RECEIPT FOR ASSOCIATE HANDBOOK..................................................................... 2

INTRODUCTION ............................................................................................................. 5

SECTION 1 – EMPLOYMENT POLICIES ...................................................................... 7

1.1 Applications And Reference Checks ......................................................................... 7

1.2 Immigration Law Compliance .................................................................................... 7

1.3 Employment Categories ............................................................................................ 7

1.4 Training ..................................................................................................................... 8

1.5 Performance And Wage Reviews ............................................................................. 8

1.6 Equal Employment Opportunity................................................................................. 8

1.7 Sexual Or Other Harassment .................................................................................... 9

1.8 Opportunity For Advancement ................................................................................ 12

1.9 Employment Of Relatives ........................................................................................ 12

1.10 Associate Information ............................................................................................ 12

1.11 Attendance Policy ................................................................................................. 13

SECTION 2 - COMMUNICATION ................................................................................. 15

2.1 Bulletin Board .......................................................................................................... 15

2.2 Company Communications ..................................................................................... 15

2.3 Wellness Newsletter ................................................................................................ 15

2.4 Intranet .................................................................................................................... 15

2.5 Social Media ............................................................................................................ 15

2.6 Electronic Communications Policy .......................................................................... 19

2.7 Should You Have A Complaint Or Suggestion ........................................................ 21

2.8 Associate Suggestions ............................................................................................ 22

SECTION 3 - COMPANY POLICIES AND PROCEDURES ......................................... 23

3.1 Payday And Payroll Procedures .............................................................................. 23

3.2 Payroll Deductions .................................................................................................. 23

3.3 Overtime .................................................................................................................. 24

3.4 Absences ................................................................................................................ 24

3.5 Leaves Of Absence ................................................................................................. 24

3.6 Break Time For Nursing Mothers ............................................................................ 30

3.7 Working Hours/Lunch Hours/Breaks ....................................................................... 30

3.8 Time Entry Systems/Leaving Building ..................................................................... 30

3.9 Visitors .................................................................................................................... 31

3.10 Confidential Information ........................................................................................ 31

3.11 Tobacco Usage ..................................................................................................... 32

3.12 Dress, Grooming And Appearance, Shoe And Uniform Policies ........................... 32

3.13 Use Of Personal Electronic Devices ..................................................................... 32



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3.14 Solicitation And Distribution .................................................................................. 32

3.15 Leaving The Company .......................................................................................... 33

3.16 Parking Lot ............................................................................................................ 33

3.17 Severe Weather And Operational Disruption Policy.............................................. 33

3.18 Subpoenas And Requests For Information ........................................................... 35

3.19 Public Officials And Media Representatives .......................................................... 35

3.20 References ............................................................................................................ 35

3.21 Internal Investigations And Searches .................................................................... 36

SECTION 4 - COMPANY WORK RULES .................................................................... 37

4.1 Group One Offenses ............................................................................................... 37

4.2 Group Two Offenses ............................................................................................... 39

4.3 Safety Rules And Guidelines .................................................................................. 40

SECTION 5 - DRUG AND ALCOHOL POLICY ............................................................ 43

5.1 Rules ....................................................................................................................... 43

SECTION 6 - BENEFITS .............................................................................................. 45

6.1 Group Insurance Plans ........................................................................................... 45

6.2 Holidays .................................................................................................................. 46

6.3 Paid Time Off Policy ................................................................................................ 46

6.4 401(K) Profit Sharing Program ................................................................................ 49

6.5 Associate Assistance Program................................................................................ 50

6.6 Tuition Assistance Program .................................................................................... 50

6.7 Credit Union ............................................................................................................ 51

6.8 Additional Benefits .................................................................................................. 51



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INTRODUCTION Standard Textile Co. Inc. is a leading global manufacturer and distributor of apparel, linens, decorative and surgical products for the healthcare, hospitality and work wear industries. This handbook is intended to give you general guidelines in ordinary language. It is not intended to be legally binding and is not a contract. The Company hopes each employment relationship will be a satisfactory and enduring one. Nevertheless, the Company’s policy is that employment is “at-will.” Associates remain free to resign their employment at any time, for any or no reason, without notice. Similarly, the Company retains the right to terminate the employment of any Associate at any time, for any or no reason, without notice. No one but the President and Chief Executive Officer of Standard Textile Co. Inc. has the authority to change this or any other provision of this handbook, and he may do so only in writing. Any statements to the contrary by anyone else are unauthorized, expressly disavowed, and should not be relied upon by anyone. The contents of this handbook are subject to change at any time at the discretion of the President and Chief Executive Officer. Information about additions or changes to this handbook will be distributed to you as soon as practical. It is your responsibility to insert copies of these changes into your copy of the handbook. In this handbook, there are references to department directors, managers, and supervisors. Department directors are responsible for the development of programs and systems for their areas of the Company and on occasion may also have multi-departmental duties. They may also be assigned department manager duties. The department manager is head of the department, and is responsible for its entire operation. In some departments, there are one or more supervisors who report to the manager. The supervisor is responsible for a certain area or aspect of the department. Some Associates will have a manager and supervisor; others will report directly to a manager. During your employment, your manager and/or supervisor may change. You will be notified when this occurs. One of the Company’s goals is to create and maintain a friendly, cooperative work environment. Open communication is an important component of the organization. You should feel free to discuss with your supervisor any matter relating to your job, to offer suggestions, and to present problems that may be troubling you. You will find information concerning our employment policies and benefits in the attached Associate handbook. Please read the handbook carefully and refer to it whenever you have a question concerning your employment. This handbook applies to all hourly field Associates employed by Standard Textile Co., Inc. or Standard Textile Co., Inc.’s United States subsidiaries (collectively, “Company”, “we”, “our” or “us”). If you have any questions concerning the handbook, please direct them to your supervisor. If your supervisor cannot answer your question, he or she will obtain an answer for you from the appropriate Company representative.



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We are glad that you have decided to join

our organization.

We hope your job here brings you satisfaction and

opportunity.



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SECTION 1 – EMPLOYMENT POLICIES

1.1 Applications And Reference Checks The Company relies upon the accuracy of information presented through the hiring process and during employment. Any misrepresentations, falsifications, or material omissions in any of this information may result in exclusion from further consideration for employment or, if the person has already been hired, in termination of employment. To ensure that all those who join the organization are qualified and motivated, it is the policy of the Company to check the employment references of applicants.

1.2 Immigration Law Compliance This Company complies with the Immigration Reform and Control Act of 1986, and seeks to employ only U.S. citizens and aliens who are authorized to work in the United States. As a condition of employment, each new Associate must provide appropriate documentation verifying identity and work authorization and complete, sign and date the first section of a Form I-9. Before beginning work, newly rehired Associates must also complete the form if they have not previously filed a Form I-9 with this organization, if their previous Form I-9 is more than three years old, or it is no longer valid.

1.3 Employment Categories Each Associate is designated either as exempt or non-exempt from federal and state wage and hour laws. Non-exempt Associates are entitled to overtime pay under the specific provisions of federal and state laws. Exempt Associates are paid a weekly salary and are not eligible for overtime pay. In addition, each Associate on the Company payroll belongs to one of the following employment categories:

1. Regular Full-time Associates are those who are not of temporary or part-time

status, are employed on average at least 30 hours per week and who have completed the benefits waiting period. They are generally eligible for the Company’s benefit programs subject to the terms, limitations, and conditions of each benefit program. (Refer to SECTION 6 - BENEFITS).

2. Part-time Associates are those who are not of a temporary status and who are

employed on average less than 30 hours per week. They receive all legally mandated benefits (such as workers’ compensation) but are eligible for only some parts of the Company’s benefit programs. (Refer to SECTION 6 - BENEFITS).



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3. Temporary Associates are those hired as interim replacements, to supplement the work force on a temporary basis, or to help with a specific project. Assignments in this category are of a limited duration. Employment beyond any initially determined period does not imply a change in employment status. Temporary Associates remain temporary unless they are notified of a change. While temporary Associates receive all legally-mandated benefits (such as workers’ compensation), they are ineligible for all of the Company’s other benefit programs.

1.4 Training The type of training that is appropriate for a new Associate will vary, depending on the position and department. The length of the training period and the amount of training provided also varies depending on your assignment. Your manager and/or supervisor will discuss your training with you. It is important to note that similar training also may be involved for Associates who transfer from one position to another within the Company.

1.5 Performance And Wage Reviews The Company supports the development of each Associate through ongoing evaluation and feedback from managers. The Company will normally conduct a formal performance review at least once each year. Wages will be reviewed on an annual basis. No Associate should expect to receive a wage increase or promotion based solely on the passage of time or length of employment. In addition, there may be periodic reviews scheduled throughout the year that provide an opportunity for performance feedback between managers and their Associates.

1.6 Equal Employment Opportunity Equal employment opportunity is not only the law, but it is also a principle of our Company’s operation. The Company’s policy is to promote equal employment opportunities without regard to race, color, religion, sex (including pregnancy), national origin, ancestry, age, disability, genetic information, sexual orientation, gender identity, veteran or military status, or any other unlawful factor, consistent with applicable law. To implement this policy, the Company will continue to abide by all applicable legal requirements in each of the following areas:

Recruit, hire, train and promote persons in all job classifications without regard to race, color, religion, sex (including pregnancy), national origin, ancestry, age, disability, genetic information, sexual orientation, gender identity, veteran or military status, or any other unlawful factor.



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Base decisions on employment so as to further the principle of equal employment opportunity.

Ensure that all personnel actions, including but not limited to, compensation, benefits, transfers, layoffs, return from layoffs, Company-sponsored training, education and tuition assistance, and social and recreational programs, are administered without regard to race, color, religion, sex (including pregnancy), national origin, ancestry, age, disability, genetic information, sexual orientation, gender identity, veteran or military status, or any other unlawful factor.

Consistent with applicable laws requiring accommodation of disabilities, the Company will make reasonable accommodations for qualified individuals with known disabilities unless doing so would result in an undue hardship to the Company. All requests for reasonable accommodation should be made to the Human Resources Department.

1.7 Sexual Or Other Harassment General The Company is committed to maintaining a work environment that is free of discrimination and harassment based on a person’s race, color, religion, sex (including pregnancy), national origin, ancestry, age, disability, genetic information, veteran or military status, sexual orientation, gender identity, or any other unlawful factor, consistent with applicable laws. Actions, words, jokes, or comments based upon these characteristics is prohibited and will not be tolerated. Associates should respect the rights, opinions, and beliefs of others. Harassment of any person because of a legally protected classification such as race, color, religion, sex (including pregnancy), national origin, ancestry, age, disability, genetic information, veteran or military status, sexual orientation, gender identity, or any other unlawful factor is strictly prohibited, whether directed at an Associate, vendor, or customer. Any such harassment is prohibited by this policy whether or not it also violates the equal employment opportunity laws. The Company’s anti-harassment and discrimination policy applies to all persons involved in the operation of the Company and prohibits unlawful harassment and discrimination by any employee of the Company, including managers, supervisors, and co-workers, as well as vendors, customers, contractors and temporary employees. Sexual Harassment Sexual harassment is one kind of discriminatory harassment. Unwelcome sexual advances, requests for sexual favors and other verbal or physical conduct of a sexual nature may constitute sexual harassment when:



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1. Submission to such conduct is made either explicitly or implicitly as a term or condition of an individual’s employment;

2. Submission to or rejection of such conduct by an individual is used as the basis for employment decisions affecting such individual; or

3. Such conduct has the purpose or effect of interfering with an individual’s work performance or creating an intimidating, hostile or offensive working environment.

It is not possible to identify all of the conduct which could be sexual harassment. However, some common examples of conduct that might be sexual harassment are:

threatening to, or actually making, job decisions, such as discharge, demotion or reassignment, if sexual favors are not granted;

demanding sexual favors in exchange for favorable or preferential treatment; use of stereotypes or gender-related remarks which are offensive, insulting,

derogatory or degrading; unwelcome and/or repeated flirtations, propositions, or advances; unwelcome physical contact; whistling in a manner directed toward the appearance of another; leering; improper gestures; tricks or horseplay; unwelcome comments about appearance; sexual jokes or use of sexually explicit or offensive language, either in person, in

writing or through email; gender or sex-based pranks; or the display in the workplace of sexually suggestive objects or pictures, including

material from the Internet.

The Company is committed to providing a professional work environment free from sexual harassment. Sexual harassment is strictly prohibited and will not be tolerated. Associates are expected to take particular care to ensure compliance with this policy in informal situations such as social functions and business trips. Other Harassment No one may harass anyone because of that person’s race, color, religion, national origin, ancestry, age, disability, genetic information, sexual orientation, gender identity, veteran or military status, or any other unlawful factor. Harassing conduct includes epithets, slurs or negative stereotyping; threatening, intimidating or hostile acts; denigrating jokes; and written or graphic material that denigrates or shows hostility or aversion toward an individual or group that is placed on walls or elsewhere on the employer’s premises or circulated in the workplace, on Company time or using Company equipment such as email, phone (including voice messages), text messages, or other means.



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Making Complaints and Reporting Violations If you believe that you are the victim of harassment, you are encouraged to communicate your complaint to the Company. You are not required to complain first to the person who is harassing you. If you prefer, you may complain directly to any of the following: Your supervisor or the supervisor of the person who may be harassing you; The Director of Human Resources or any manager in the Human Resources

Department; The President or any other officer of the Company; or The Business Practices Office or the Business Practices HelpLine at 1-888-355-

3100 as described in the “Do the Right Thing” booklet. Similarly, if you observe harassment of another Associate, you are requested and encouraged to report this to one of the persons described above. No reprisal, retaliation, or other adverse action will be taken against any Associate for making in good faith a complaint or report of harassment, or for assisting in good faith in the investigation of any such complaint or report. Any suspected retaliation or intimidation should be reported immediately to one of the persons described above. Investigation of Complaints and Reports The Company will promptly and thoroughly investigate any complaint or report of a violation of the policy. A thorough investigation can take several weeks in some cases. You may at any time ask the person you complained or reported to about the status of the investigation. Penalties for Violations The Company will take prompt disciplinary and remedial action if its investigation shows a violation of this policy. Depending on the circumstances, the disciplinary action may range from a warning to a discharge. A complaint or report that this policy has been violated is a serious matter. Dishonest complaints or reports are also against our policy, and the Company will take appropriate disciplinary action if its investigation shows that deliberately dishonest and bad faith accusations have been made. Additional Information If you have any questions about this policy, please contact the Director of Human Resources or any manager in the Human Resources Department for additional information. If you have other questions or concerns about discrimination or



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harassment, you may ask the Director of Human Resources, the Business Practices Office, or the Business Practices HelpLine.

1.8 Opportunity For Advancement The Company believes that deserving and qualified Associates should be given an opportunity for advancement when positions are available. Often, opportunities for advancement will be posted on the bulletin board. Some positions can be readily and logically filled by a deserving Associate designated at the Company’s sole discretion as next in line for the position and may not be posted. Other positions may require certain specialized knowledge, education, training, or technical skill. In either case, the Company will, in its sole discretion, evaluate the skills, qualifications and performance records of Associates, business needs, and other factors when making employment decisions. To be considered for a promotion or transfer, the Associate must have a satisfactory attendance record and satisfactory performance evaluations, as well as the necessary qualifications for the new position. Normally, an Associate must already have 12 months of service with the Company as a Regular Full-time or Part-time Associate to be considered for any such promotion or transfer. Testing or the completion of an assessment may be required when applying for certain positions. You may contact the Human Resources Department for additional information.

1.9 Employment Of Relatives Our goal is to recognize talent and meritorious service wherever they may exist. Job openings are filled according to business needs and our evaluation of the qualifications of the individual applicant. A relative of an Associate, irrespective of the title or position of that Associate, must follow the same application procedure and be evaluated on the same basis as an applicant who is not so related. In any event, an Associate will not normally be permitted to report directly to a relative.

1.10 Associate Information You must keep the Human Resources Department informed of any changes in your name, home address, phone number(s), emergency contacts and tax withholding information so that our records are always current.



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1.11 Attendance Policy Attendance is a critical part of the team effort required to meet the service demands of our customers. Department specific time and attendance policies apply to hourly Associates. These policies will be covered with Associates working in those departments during orientation. The following are the definitions and actions in effect regarding attendance: 1. Absence: Failure to report to work when scheduled or remain until quitting time. 2. Tardiness: Clocking in later than the Associate’s scheduled starting time. 3. Occurrence: Each absence is an occurrence unless for a reason listed below as

“Not Counted.” Any absence of one or more consecutive scheduled work days for the same reason will be a single occurrence, if that reason is a single illness or injury of the Associate or a dependent family member (unless “Not Counted”), or a leave of absence granted in advance by the Company. The Company may require medical or other verification of absence as necessary. A physician’s statement must be provided for any absence for illness or injury of 3 consecutive scheduled work days or more. If the absence equals more than one half of the scheduled working hours for the day of the absence one occurrence will be assessed. One half of an occurrence will be assessed for an absence of one half of the scheduled working hours for the day of the absence or less. An Associate who does not report that he or she will be absent or more than one hour tardy at least 30 minutes before scheduled starting time on the day absent or tardy will receive an additional occurrence.

4. Not Counted: The only absences not counted as occurrences will be absences

for approved PTO, approved PTO for funeral leave, military leave, work injury, illness or injury requiring in-patient hospital admission of the Associate or a dependent family member, jury duty, Family and Medical Leave Act1, and lawful subpoena. Exceptions must be verified.

5. Corrective Actions: The Company will use the standards listed below in

determining whether absenteeism is of a serious nature. If in any rolling twelve-month period:

a. An Associate has eight (8) occurrences – a written warning is

warranted. b. An Associate has nine (9) occurrences – a final written warning is

1 For locations with less than 50 Associates within 75 miles, the Family and Medical Leave Act (“FMLA”) does not

apply, but the Company allows FMLA-type leaves of absence at these locations, which are “Not Counted” under this

Policy. Whether to allow FMLA-type leaves at these locations is at the sole discretion of the Company.



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warranted. c. An Associate has ten (10) occurrences – will subject Associate to

termination. Each occurrence remains on your record until the anniversary date of that

occurrence. Steps may be skipped for consecutive absences that are separately counted. During the first 90 calendar days of employment, an Associate may be terminated for less than the above number of occurrences and without following the above steps.

6. Accommodation of Disabilities: Consistent with applicable law, the Company

reasonably accommodates disabilities of Associates. If you have a disability that requires accommodation, please contact Human Resources.

7. Effect of Policy: This Policy does not change your at-will status; you and the

Company remain free to end the employment relationship at any time, with or without cause. Other attendance abuses, such as no-call/no-show, walking off the job and absence without good reason, will be handled on a case-by-case basis, and may result in additional discipline up to and including termination.



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SECTION 2 - COMMUNICATION

2.1 Bulletin Board The Company uses the bulletin boards located throughout the facility for required legal notices and to inform Associates about new policies and procedures and special events. Accordingly, it is to your advantage to review the bulletin boards regularly. Only authorized personnel are permitted to post, remove or alter any notice. Do not post or remove any materials from the bulletin boards. Bulletin boards are Company property and the Company reserves the right to remove any materials from Company bulletin boards.

2.2 Company Communications Throughout the year, the Company may provide information to Associates on a variety of topics of interest through newsletters and announcements. This communication may include the Company’s business results or strategies and success stories, Associate milestones, and recognition of individual or company contributions.

2.3 Wellness Newsletter The Wellness Newsletter is a publication for all Associates, and covers a wide variety of health and wellness topics. We encourage you to submit items which may be of interest. Any items you wish to submit for this publication should be sent to the Human Resources Department.

2.4 Intranet The Intranet is a web browser-based document communication system. The purpose of the Intranet is to facilitate communications for all Associates through a central repository of information and provide Associates with an organized and structured way to obtain information. Associates have the ability to look through publications, phone directories, forms, documents, policies, and procedures. Additional information regarding many of the policies contained in this Handbook can be found on the Company’s Intranet site.

2.5 Social Media The Company recognizes that the Internet provides Associates with unique and



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valuable opportunities to participate in interactive discussions and share information using a wide variety of social media including internal resources such as instant messaging as well as external resources such as Facebook, Twitter, LinkedIn, MySpace, You Tube, blogs, wikis, personal web sites, web bulletin boards, chat rooms, or any other means of communicating or posting information or content on the Internet. The Company respects its Associates’ decision to use social media; however, it is important that you are aware of the risks your use of social media can pose to the Company’s confidential and proprietary information, its brands, and compliance with business rules and laws. To minimize these risks, to avoid loss of productivity and distraction from job performance, and to ensure that Company IT resources are used only for appropriate business purposes, the Company expects its Associates and interns to adhere to the following guidelines regarding use of social media while in the workplace as well as outside the workplace when the use of social media references or impacts the Company or its business partners, brands, products or Associates. Please be mindful that you are personally responsible for the content you publish online and it will likely be public for a very long time – as a general rule, use common sense in all social media communications.

1. KNOW AND COMPLY WITH ALL COMPANY POLICIES. The same

principles and guidelines found in the Company’s policies apply to your activities online. Social media should never be used in a way that violates any Company policies or Associate obligations. Please revisit and adhere to the Company’s Electronic Communications Policy, Ethics/Code of Business Conduct, Equal Employment Opportunity and Sexual Harassment policies, and other Associate Handbook policies including, without limitation, those protecting confidential business information and prohibiting harassment, discrimination, threats of violence or similar inappropriate or unlawful conduct.

2. IDENTIFY YOURSELF AND USE A DISCLAIMER. Where your

connection to the Company is apparent, make it clear that you are speaking for yourself and not on behalf of the Company. Do not post anything in the name of the Company or in a manner that could be reasonably attributed to the Company without prior written authorization from the Director of Brand Marketing & Communications. In those circumstances, you may want to include this disclaimer: “The views expressed on this [blog; website] are my own and do not reflect the views of my employer.” Consider adding this language in an “About Me” section of your blog or social media profile.

3. WHERE APPROPRIATE, DISCLOSE ASSOCIATIONS WITH

COMPANY. If you are authorized to use social media on behalf of the Company, you must disclose your connection with the Company and your



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role at the Company. Do not attempt to conceal potential conflicts of interest. Strive for accuracy in your communications; errors and omissions reflect poorly on the Company and could result in liability for you or the Company. Further, if you identify yourself as an Associate of the Company, ensure that your profile and related content are consistent with how you wish to present yourself to colleagues and clients.

4. USE PERSONAL EMAIL ADDRESSES ONLY. Unless you have been

authorized in writing to represent the Company, use your personal email address (not your Company email address) as your primary means of identification. Just as you would not use Company stationery for a letter to the editor with your personal views, do not use your Company email address for personal views.

5. RESPECT CONFIDENTIALITY AND INTELLECTUAL PROPERTY

RIGHTS. You may not disclose the Company’s confidential information, trade secrets or intellectual property through social media or otherwise. This includes, but is not limited to, information about trademarks, upcoming product releases, pricing, Company strategies, prospective acquisitions or divestitures, business performance, business schedules or meetings, business travel plans, and any other business information not previously publicly released by the Company. Respect all copyright and other intellectual property laws. For the Company’s protection as well as your own, it is critical that you show proper respect for the laws governing copyright, fair use of copyrighted material owned by others, trademarks and other intellectual property, including the Company’s own copyrights, trademarks, and brands. If you have any doubts regarding the confidentiality of any business information or whether a particular post or upload might violate another’s intellectual property rights, you should err on the side of keeping the information confidential or consult with the Company’s Legal Department before making the communication. Any post or upload that incidentally includes the Company’s logo or trademark should also make it reasonably clear that you are not representing or speaking for the Company, unless you have been authorized in writing to do so.

6. COMMUNICATIONS ABOUT THIRD PARTIES. Do not cite or reference

customers, partners, suppliers, or competitors without obtaining their advance written approval. Please remember that the Company is a global organization whose associates, customers, partners, and suppliers reflect a diverse set of customs, values and points of view. You should show proper consideration for others’ privacy and for topics that may be considered objectionable or inflammatory. If you decide to post complaints or criticism, do not use statements or other material that reasonably could



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be viewed as vulgar, malicious, obscene, threatening, intimidating, bullying, harassing or defamatory.

7. AVOID COMPANY RELATED ENDORSEMENTS AND PUBLIC

COMMENT. The Company does not endorse people, products, services and organizations. The Company has an established means of communicating publicly as a Company, and only designated Associates are authorized to speak publicly on behalf of the Company.

8. PERSONAL USE. The Company allows limited and occasional use of

social media during working time and by means of the Company’s IT resources as long as such use is not excessive and does not interfere with work responsibilities or otherwise violate the Company’s policies or Code of Business Conduct. The Company reserves the right to further limit or prohibit personal use of social media during work time and by means of its IT resources that in the sole judgment of management is excessive or interferes with work responsibilities.

Right To Monitor All contents of the Company’s IT resources and communications systems are the property of the Company. Therefore, Associates should have no expectation of privacy whatsoever in any message, file, data, document, facsimile, telephone conversation, social media post, conversation, or any other kind of information or communications transmitted to, received or printed from, or stored or recorded on the Company’s electronic information and communications systems. The Company reserves the right to monitor, intercept and review, without further notice, every Associate’s activities using the Company’s IT resources and communications systems, including but not limited to social media postings and activities. The Company may also store copies of such data or communications for a period of time after they are created, and may delete such copies from time to time without notice. Do not use the Company’s IT resources and communications systems for any matter that you desire to be kept private or confidential from the Company. Reporting Violations If an Associate believes that an online communication violates any Company policy, the Associate should immediately report the online communication to an HR representative. The Company may investigate the matter, determine whether the communication violates its policies, and take appropriate action. Any Associate who violates this policy may be subject to disciplinary action, up to and including termination.



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2.6 Electronic Communications Policy The Company has established the following guidelines for Associate use of the Company’s technology and communication networks, including facsimile machines, telephones, handheld devices, voice mail, email, and Internet, in an appropriate, ethical and professional manner. Compliance with this policy assists the Company in the security, management, maintenance, and service of the Company’s equipment. By following the guidelines that are listed below, you will enhance your ability to perform your job and serve our customers. If you have any questions regarding this matter, please do not hesitate to contact the Company’s IS HelpDesk. Company Provided Computer Equipment In general, laptops and/or handheld devices will be provided to salaried Associates that need to be accessible after hours and/or frequently travel for work and are expected to work while traveling. A desktop computer may be provided to other Associates. Remote access, which will allow you to access the Company’s internal network from your home computer, may be provided if needed. This access will be set up by the IT Department and terminated if used in an inappropriate manner or when the Associate’s employment is ended. The equipment you receive from the Company has been tested and should be in good working order when you receive it. It is your responsibility to notify the Company’s IS HelpDesk of any operational problems or damage. You are also responsible for the basic care of the equipment given to you. Reasonable measures should be taken to ensure the safety of the equipment given to you. For example, a laptop computer should never be checked as baggage for airline travel; rather, it should be carried onto the aircraft on your person. It is your responsibility to report stolen or lost equipment immediately to the IT Department. All Company-provided equipment is covered by a warranty through either the product vendor or the manufacturer. The Company will register all equipment supplied to you for the applicable warranty. The warranties do not cover misuse or abuse and you are responsible for all equipment damage that is a result of misuse or abuse. Further, if equipment is delivered to you with user’s guides, support manuals, setup guides, and other miscellaneous documentation, it is your responsibility to maintain these documents. Upon request of the Company, all equipment and accessories shall be promptly returned in the same condition as received except for ordinary wear and tear. Software and Electronic Programs To be able to effectively support the Company’s large number of computers, smartphones and tablet devices, the software setup in each electronic device must be



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uniform. The equipment you receive has been set up for your use. Do not install or remove any software program without the consent of the Company’s Manager - IS Training & Support. Unauthorized software includes any personal finance software, tax software, screen savers or any program or software downloaded via the Internet, disk, CD or from any other media. Do not install or attach any additional hardware onto the computer without the consent of the Company’s Manager – IS Training & Support. If unauthorized programs, software or files are discovered by the IT Department, they will be removed immediately. Any information saved in IT-designated areas, your “My Documents” folder, the G drive, the P Drive or the Company’s cloud based file storage systems will be backed up on a regular basis. Any files or information stored outside of these areas will not be backed up and could be lost in the event of a system failure. The Company retains the right to remove from its systems or personal computers any program for which written authorization is not on file, decline to service or maintain any program which was not installed by the Company, and/or withdraw its consent to install programs on any personal computer at any time. Electronic Mail and Internet Access Associates may be provided a Company email address upon acceptance of employment with the Company. Associates may also be granted individual access to the Internet. The email system and Internet access are designed to facilitate business transactions involving the Company and are limited to communications primarily relating to the business of the Company. Other than limited and occasional use, the email system and Internet access are not to be used in communication of a personal, private, or non-business matter or nature. The email system and Internet access should not be used to solicit outside business ventures or for personal political or religious causes by the Associate. The email system and Internet access should not be used to create or forward “chain letters” to other Associates or to recipients outside of the Company. Associates should understand that even when an email message has been deleted, a record may remain and be accessible. Unnecessary messages should be deleted to conserve storage space on the network server. If the content of the message needs to be saved for future action or referral, it should be placed in an electronic folder, archived to a network drive or printed and saved in a file. The email system and Internet access shall not be used for the prohibited dissemination of copyrighted materials, trade secrets, proprietary financial information, customer lists, or similar proprietary materials of the Company. The Company requires Associates to comply with all licensing, copyright, or similar laws concerning use of the email system and Internet access. The email system and Internet access should not be used in any manner that may constitute disparaging, abusive, or profane conduct or that may create an offensive work environment. The Company prohibits any use of the email system or the Internet



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that would constitute discriminatory or harassing conduct based on race, color, religion, sex (including pregnancy), national origin, ancestry, age, disability, genetic information, sexual orientation, gender identity, veteran or military status. Associates are specifically prohibited from using the email system or the Internet to send or solicit sexually oriented messages or images. Company’s Right to Monitor and Consequences of Misuse All of the equipment and communication systems used by Associates in connection with the use of the email system and Internet access, including, but not limited to, telephone lines, computers, networks, electronic mail, data files and access rights, are the property of the Company. The Company retains the right to monitor all communications and transmissions using the email system and Internet. Associates should not maintain any expectation of privacy regarding these systems or any communications transmitted thereon. If Associates make incidental use of email to transmit personal messages, those messages will be Company records and will be treated no differently than messages sent for business purposes. The Company reserves the right to review, audit and disclose all active and/or archived messages sent over the email system and all active and/or archived sites accessed via the Internet. The use of authorization passwords by Associates should not be construed as creating a private communication medium. Because all the computer systems and software, as well as email and Internet connections, are the property of the Company, all Company policies apply to their use and are in effect at all times. Any Associate who abuses the Company-provided access to email, the Internet, or other electronic communications or networks may be denied future access, and, if appropriate, be subject to disciplinary action up to and including termination, within the limitations of any applicable federal, state or local laws. Compliance with Policy Failure to adhere to the foregoing policy may result in disciplinary action, including termination of employment. If you have any questions concerning this policy, please contact the IS HelpDesk.

2.7 Should You Have A Complaint Or Suggestion The Company will make every effort to minimize problems and misunderstandings. If you feel you have not been treated fairly or if you have a problem relating to your job, please talk to your supervisor or manager about the issue. In any group with people working together, honest differences of opinion regarding working conditions or other matters will arise from time to time. Any time you feel that you



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have a problem or complaint that has not been satisfactorily resolved within your department, ask your manager for a meeting with a representative in Human Resources. Although most misunderstandings can be solved on an informal basis and usually with the supervisor or manager, a more formal procedure is available to resolve more difficult problems or if you do not feel comfortable talking to your supervisor or manager. At this stage, you should put your complaint in writing and submit it to your Human Resources representative. The Human Resources Department will assist you in doing this if you wish. At this point, Human Resources will review your problem, confer with other members of the management staff and get back to you with a final answer. We encourage all Associates to use this procedure when they have complaints or suggestions.

2.8 Associate Suggestions Associates are encouraged to bring to the attention of the Company any ideas, suggestions, or questions which they may have. You should feel free to make suggestions or ask questions through your supervisor or department manager.



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SECTION 3 - COMPANY POLICIES AND PROCEDURES

3.1 Payday And Payroll Procedures Pay periods and paydays for hourly Associates vary based on location. Check with your supervisor for your location’s scheduled pay period and payday. Wages for salary Associates will be paid bi-weekly on Friday for the preceding two (2) week period. The Company also offers direct deposit service for your payroll check in most local banks. For information concerning this service, contact the Payroll Department. If you are absent on a payday, you may do any of the following:

a) Pick up the check or payroll stub from the Office when you return. b) Instruct the Office prior to payday to mail the check or payroll stub to your

home address. c) Send a note signed by you with a friend or relative authorizing that person

to pick up the check or payroll stub. d) If scheduled for a day off on a payday due to approved PTO, funeral leave,

or military leave, you may obtain your check or payroll stub after 2:00 p.m. the previous day from the Office. Other than this, payroll advances are not permitted.

If your paycheck is lost or stolen, report this immediately to the Office who will forward the information to the Corporate Payroll department. A stop payment order will be issued to the bank, and you may be assessed a stop payment fee. A new check cannot be issued until proper authorization is received from the bank.

3.2 Payroll Deductions The Company is required by law to make certain deductions from your pay. These include Social Security, Medicare, federal, state, and city income taxes, and court ordered garnishments, as well as any other deductions required by law. Annually, the Company provides you with a summary of the amount of these deductions using Internal Revenue Service Form W-2. The Form W-2 is used in filing your income tax returns. The Company matches the amount withheld for Social Security. Over time, these deductions make you and your family eligible for Social Security disability and retirement benefits.



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3.3 Overtime Overtime work is paid for hourly Associates at one and one-half (1½) times the regular hourly rate for any time worked over forty (40) hours in a given work week unless otherwise required by law. In computing overtime, the work week begins on the day of the week and time specified by management. Overtime is based solely on actual hours worked by an hourly Associate. Paid time off may not be combined with time worked to create overtime for that particular week. Overtime must be approved in advance by your department manager. Working unauthorized overtime can subject Associates to discipline, up to and including termination. In most cases overtime will be offered to Associates interested in working the additional time; however, it may be necessary for the Company, in certain instances, to require certain individuals to work overtime. In all cases the Company will attempt to provide as much notice as possible for Associates working overtime. There are times, however, when the need to stay late arises suddenly and advance notice is not possible.

3.4 Absences An Associate who will be absent or at least one hour late is required to call his or her manager or supervisor at least 30 minutes before their scheduled starting time, giving the reason for the absence. Please note that you are required to call and speak to your manager or supervisor or leave a message for him or her at least 30 minutes before your scheduled start time. Each department may have additional requirements for reporting an absence from work.

3.5 Leaves Of Absence A leave of absence is defined as an approved absence from work for the reasons specified in the policies below. See each of those policies for a more complete definition of each type of leave of absence and the eligibility for each leave. Certain states and local jurisdictions may provide additional types of leave that are not included in this Handbook. The Company complies with all applicable leave laws. Please contact the Human Resources Department for more information. 1. Disability leave

a) Notice and Application. An unpaid leave of absence for illness or injury, including an on-the-job injury, may be granted if the Associate provides satisfactory evidence of inability to work. Female Associates will be eligible for leaves of absence for disability due to pregnancy, childbirth or related medical conditions on the same basis as leave for other disabilities. Any Associate absent due to illness



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or injury for more than three consecutive work days must provide a physician's statement verifying the reason for absence. When possible, the Associate should establish a firm date as to when return to work is expected. If this changes, the Company must be informed immediately. When such date cannot be established, the Company may require that the Associate periodically submit a progress report. The Company may require a medical examination by a physician chosen by the Company as a condition of granting or continuing the leave or reinstatement.

b) Duration of Leave. A leave for illness or injury may be granted or extended for up

to 26 weeks in any rolling 12-month period after which employment will terminate unless an extension is required by law. For Associates with 10 or more years of service, this may be extended to 52 weeks in any rolling 18 month period. This disability leave is separate from and will run concurrently with any leave taken under the Family and Medical Leave Act where the Associate is eligible for leave under the other policies (see below).

2. Personal leave

a) Notice and Application. A leave of absence for compelling personal reasons other than illness or injury and not covered by the Family and Medical Leave Act may be granted by the Company if the Associate submits a written request to the supervisor before the leave of absence is to begin, if the need for leave is foreseeable. If the need for leave is not foreseeable, the Associate must complete a leave request as soon as practicable. Associates should request personal leave as far in advance as possible. Associates must use all available paid time off before any unpaid leave may be taken. Approval of unpaid personal leave is made by the department manager in order that Associates who have paid time off may have priority for time off. Unpaid personal leave approval is contingent upon final approval by the department manager one week prior to the personal leave.

b) Duration of Leave. Associates who request paid time off less than one week in

advance will not have priority over Associates taking unpaid personal leave. The request must state the reason for the leave and the expected date of return. This initial leave shall not exceed 30 calendar days and any renewal must be requested in writing before the expiration of the leave for which renewal is granted. In no event will a personal leave of absence be granted for more than 60 days total (in any rolling 12 month period) except as required by law.

3. Military leave A military leave of absence will be granted for duty in the armed forces of the United States in accordance with applicable laws governing such leave.



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4. Leaves Under Family and Medical Leave Act.

a) FMLA Covered Events

Basic Leave Entitlement. Under the Family and Medical Leave Act (“FMLA”), an Associate who has been employed by the Company for at least one year and has worked at least 1,250 hours in the previous 12 months may take up to 12 weeks of unpaid leave during a rolling 12-month period, for any of the following reasons:

1. For incapacity due to pregnancy, prenatal medical care or child birth;

2. To care for the Associate’s child after birth, or placement for adoption or foster care;

3. To care for Associate’s spouse, son, daughter or parent who has a

serious health condition; or

4. For an Associate’s own serious health condition that makes the Associate unable to perform his or her job.

Definition of Serious Health Condition. A serious health condition is an illness,

injury, impairment, or physical or mental condition that involves either an overnight stay in a medical care facility, or continuing treatment by a health care provider for a condition that either prevents the Associate from performing the functions of the Associate's job, or prevents the qualified family member from participating in school or other daily activities.

Continuing Treatment. Subject to certain conditions, the continuing treatment requirement may be met by a period of incapacity of more than 3 consecutive calendar days combined with at least two visits to a health care provider or one visit and a regimen of continuing treatment, or incapacity due to pregnancy, or incapacity due to a chronic condition. Other conditions may meet the definition of continuing treatment.

Rolling 12-Month Period. A “rolling 12-month period” means the 365 (or 366 where applicable) days immediately preceding any day the Associate takes leave.

Military Family Leave Entitlement. Eligible Associates with a spouse, son, daughter, or parent on active duty in a foreign country or called to active duty status for deployment in a foreign country in the Armed Forces, including the National Guard or Reserves, may use their 12-week leave entitlement to address certain qualifying exigencies. Qualifying exigencies may include attending certain military events, arranging for alternative childcare, addressing certain financial and legal arrangements, attending certain counseling sessions, attending post-deployment reintegration briefings, and



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spending time with a military member on Rest and Recuperation leave (maximum of 15 calendar days).

Covered Service Member Leave. FMLA also includes a special leave entitlement that permits eligible Associates to take up to 26 weeks of leave to care for a covered service member or veteran during a single 12-month period. A covered service member is a current member of the Armed Forces, including a member of the National Guard or Reserves, who incurred or aggravated a serious injury or illness in the line of duty. A covered veteran is an individual who was discharged or released under conditions other than dishonorable during the five-year period before the first date the eligible Associate takes FMLA leave to care for the veteran, and who has a serious injury or illness incurred or aggravated in the line of duty or related to military service, subject to certain conditions. For a veteran who was discharged prior to March 8, 2013, the period between October 28, 2009 and March 8, 2013 will not count towards the determination of the five-year period.

b) Requesting FMLA Leave

Notice and Application. An Associate must provide at least 30 days advance notice before the family or medical leave is to begin if the need for leave is foreseeable, such as for expected birth or planned medical treatment. If 30 days’ notice is not practicable, then the Associate must provide as much notice as is practicable and must comply with the required call-in procedure. The initial notice must provide sufficient information for the Company to determine if the leave may qualify for FMLA protection. An Associate shall complete a leave of absence application form when requesting leave, or as soon after that as is practicable. Please contact your supervisor or a Human Resources representative to obtain a copy of these forms. The Associate must list on this form the reasons for the requested leave, the expected start of the leave, and the expected length of the leave. If the Associate is requesting intermittent leave or a reduced leave schedule, the Associate shall state the reasons why the intermittent leave or a reduced leave schedule is medically necessary and the schedule of treatment. Intermittent leave and reduced leave schedules are not available for birth or adoption leaves. The Associate must also state if the requested leave is for a reason for which FMLA leave was previously taken or certified.

The Company will designate the leave as FMLA or not and so notify the Associate. If the Associate disagrees, he or she should inform the Company immediately. If the Associate appears to be eligible, the Company will notify the Associate of any additional information required, the amount of leave counted against the Associate's leave entitlement and the Associate's rights and responsibilities. If the Associate is not eligible, the Company will provide the reason.

Medical Certification. An Associate requesting FMLA leave must submit a medical certification completed by the health care provider of the Associate or the Associate's family member demonstrating the need for the leave. The Company will provide a form for this certification. The Company may require a second opinion from a healthcare



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provider that it designates, at no cost to the Associate. A third opinion made by a healthcare provider mutually selected by both the Associate and the Company may also be required if needed to resolve a dispute between the first and second opinions. The third opinion shall be considered final. The Company may deny FMLA leave to an Associate who refuses to participate in the second and third opinion process and/or release relevant medical records to the healthcare provider designated to provide a second or third opinion.

Recertification. From time to time, recertification of a serious health condition may be required. Recertification generally will not be required more often than every 30 days (or longer if the minimum duration of the listed condition exceeds 30 days) unless you request an extension of the FMLA leave, circumstances described in the previous certification have changed significantly, or there is reason to doubt the validity of the prior certification.

c) Scheduling Leave.

An Associate does not need to use this leave entitlement in one block. Leave can be taken intermittently or on a reduced leave schedule when medically necessary. Associates must make reasonable efforts to schedule leave for planned medical treatment so as not to unduly disrupt the Company's operations. Leave due to qualifying exigencies may also be taken on an intermittent basis.

d) Pay and Benefits.

All family and medical leaves are without pay, except to the extent paid leave is available. The Company requires that Associates use any available paid time off while on FMLA leave that would otherwise be unpaid, and the paid leave counts against the 12-week entitlement. FMLA leaves are without benefits, except that group health and hospitalization insurance will be continued during FMLA leave with the same terms, conditions and Associate contributions applicable to Associates who are actively at work. The Associate must continue to pay his or her portion of the health insurance premium and Flexible Spending Account deduction on the established pay cycle during the period of FMLA leave. If the Associate fails to make these payments, the Company will cancel the Associate’s coverage during the period of FMLA leave.

e) Return from Family or Medical Leave.

Associates must tell their supervisor of the date they will be able to return to work, in writing, no less than one week in advance whenever practicable. An Associate on medical leave due to the Associate's own serious health condition must, as a condition to returning to work, submit a medical certificate releasing the Associate to return to his or her job. Upon return from FMLA leave, most Associates must be restored to their original or equivalent position with equivalent pay, benefits or other employment terms.



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f) Limitations and Enforcement.

The FMLA makes it unlawful for any employer to:

Interfere with, restrain, or deny the exercise of any right provided under FMLA; or

Discharge or discriminate against any person for opposing any practice made unlawful by FMLA or for involvement in any proceeding under or relating to FMLA.

All leaves which may be available or taken under the Family and Medical Leave Act are subject to the restrictions, limitations and conditions provided in that law and any valid regulations promulgated under it. An Associate who believes his or her FMLA rights have been violated may file a complaint with the U.S. Department of Labor or may bring a private lawsuit against an employer. FMLA does not affect any Federal or State law prohibiting discrimination, or supersede any State or local law or collective bargaining agreement which provides greater family or medical leave rights.

g) Other leaves of absence due to Associate's disability or other reasons.

An Associate who is unable to work but is not eligible for FMLA leave, has used all available FMLA leave, or wishes to use leave for other reasons must apply for a leave pursuant to the Company's disability or personal Leave of Absence policy, unless otherwise required by law.

h) Leave under state military family leave law.

Where permitted, any leave under an applicable state military family leave law runs concurrently with FMLA military family leave when both are applicable.

i) Locations with less than 50 Associates.

The Family and Medical Leave Act (“FMLA”) does not apply to Associates at locations with less than 50 Associates within a 75 mile radius. However, the Company may allow similar medical leaves of absence at these locations. Whether to allow medical leaves at these locations is at the sole discretion of the Company. Please contact your Human Resources representative for more information. 5. Pay and benefits All leaves of absence are without pay or benefits, unless otherwise specified in this handbook or required by law.



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3.6 Break Time For Nursing Mothers Associates who are nursing will be provided with reasonable unpaid breaks to express breast milk as frequently as needed for up to one year after the birth of a child. The Company will provide a place for the break, other than a bathroom, that is shielded from view and free from intrusion. Nursing mothers who need to express milk during the working day should contact their supervisor, who shall work with the Associate to provide reasonable break times. If possible, break times may be taken during regularly scheduled meal and rest breaks. Associates will not be retaliated against for exercising their rights under this policy.

3.7 Working Hours/Lunch Hours/Breaks You will be notified as to your working hours. You must be at your assigned work station at or before your starting time and until your ending time, unless you have received your supervisor’s permission. An Associate who will be absent or at least one hour late must call his/her manager at least 30 minutes before his/her scheduled start time. Unexcused or excessive tardiness will result in disciplinary action as described in the Company Rules section of this handbook. Temporary deviation from the normal starting time can only be granted by the manager or supervisor and such permission must be recorded with the Payroll Department and Human Resources Department. The Company has the option of rescheduling or adding work hours from time to time to meet its needs. In addition to the assigned working hours, Associates will also be assigned lunch and rest breaks based on their weekly schedule. Hourly Associates must clock out during their lunch period.

3.8 Time Entry Systems/Leaving Building ADP Time Saver Some locations use ADP TimeSaver to record hourly Associate’s time worked. At these locations, each hourly Associate must login to the ADP TimeSaver system upon arrival to work each day. Any Associate who tampers with his or her own time records or the time records of another Associate will be subject to disciplinary action as outlined in the Company Rules section of this handbook. Hourly Associates must clock in and out of the TimeSaver system when leaving the premises during working hours. This includes leaving the building for lunch, breaks or outside appointments. Hourly Associates who are working off premises must accurately report their work time. Violations of this provision are subject to disciplinary action, as outlined in the Company Rules section of this handbook. If an Associate recognizes that his or her attempted login did not register, the Associate must notify his or her manager immediately and provide the time of arrival or departure. The manager will then notify the Payroll Department to report the failure to register.



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Time Clocks Some locations use Associate time clocks to record hourly Associate’s time worked. At these locations, each hourly Associate must run only his or her own badge through the clock. Any Associate who tampers with his or her own time records or badge or another Associate's time records or badge will be subject to disciplinary action as outlined in the Company Rules section of this handbook. When leaving the premises during working hours, hourly Associates must clock in and out at the time clock. Violations of this provision are subject to disciplinary action, as outlined in the Company Rules section of this handbook. If an Associate recognizes that the attempted clock use did not register, the hours worked must be manually entered on the card and verified with the manager’s signature.

3.9 Visitors Your safety and protection come first. All visitors to the Company’s facilities must “check-in” at the Reception area. To ensure their safety, we must have visitors “sign-in” and obtain a visitors badge at the Reception area. Any unauthorized visitors will be asked to leave the premises. To ensure their safety, all authorized visitors must be escorted throughout the production and warehouse facility. Often customers, vendors, and other guests will request facility tours and visits. We always want to put our best foot forward. We ask you take part in any tours when asked. It will be important to keep your work areas clean to make a good impression with our visitors. Associates are not allowed to have visitors, family members and/or friends enter the plant unless the visit is due to an emergency and/or authorized by your manager or the Human Resources Department. This is for their safety and your protection.

3.10 Confidential Information During and after your employment, do not disclose confidential Company business information (such as confidential information about customers, suppliers, vendors, products, sales and marketing activity and plans, research, test results and data, trade secrets, etc.) to anyone outside of the Company or co-workers who have no need to know. Upon termination or at any other time requested by the Company you must surrender all Company property and business information, along with any duplicate or other reproduction of it. Unauthorized disclosure, removal, transmittal, copying or use of the Company’s confidential business information will result in discipline, up to and including termination,



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and could result in legal action against you.

3.11 Tobacco Usage Smoking, the use of all tobacco products, the use of smokeless tobacco products, and the use of unregulated nicotine products (i.e. “e-cigarettes”) of any kind is prohibited anywhere and at any time on Company property, including parking lot and grounds. This also includes personal vehicles on Company property. Use of tobacco products must be done off Company property.

3.12 Dress, Grooming And Appearance, Shoe And Uniform Policies The Company believes our Associates should have good judgment concerning dress and physical appearance. It is important that Associates choose their attire with consideration of their position with the Company and frequency of public contact. Attire and grooming should be safe, non-distracting and non-offensive. The Company reserves the right to require Associates to change their attire or grooming if it does not meet these requirements. Because of the many customers and other visitors we have, we stress that personal grooming and personal appearance must both be maintained at a satisfactory level. Associates will receive a Uniform Policy specifically written for Company Associates upon employment with the Company. Please refer to SECTION 4.3 SAFETY RULES AND GUIDELINES, #14 for specific information on footwear regulations.

3.13 Use Of Personal Electronic Devices Associates should use good business judgment with respect to the use of personal electronic devices during work time. Except in emergency situations, Associates should not make, send or receive personal, non-business calls or text messages during work time. Such calls and messages should be made during breaks and lunch periods and should not be disruptive to other Associates. No personal long distance calls may be made or collect calls received on any Company telephones.

3.14 Solicitation And Distribution The Company supports various charitable causes through corporate gifts and Associate campaigns. Solicitation is prohibited during work time if it would interfere with any Associate’s work or Company operations. This does not include break or lunch time.



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Distribution of any printed materials must be limited to non-work areas during non-work time. Non-employee solicitors are not permitted in our buildings or on the property. If you are aware of any non-employee solicitors in our buildings or on the property, please contact your supervisor or manager or the Human Resources Department immediately.

3.15 Leaving The Company If, for any reason, you decide to terminate your employment, the Company requests at least two weeks' written notice to give the Company adequate time to take care of any necessary matter pertaining to your termination. You should complete a voluntary resignation letter (if appropriate) and a departure interview as well as verify your address and telephone number are correct. All Company tools, uniforms, and property must be returned to the Human Resources Department upon leaving the Company (back belts, tools, etc.). No PTO may be used during this two-week period unless unavoidable. An Associate who does terminate his or her employment without giving two weeks' notice will forfeit any accrued PTO. Refer to SECTION 6.3 PTO POLICY, #6, Payment of accrued paid time off upon leaving the Company.

3.16 Parking Lot Spaces in the Company lot are available to Associates on an open parking basis. The Company cannot assume responsibility for fire, theft, damage or personal injury involving Associates’ automobiles. Visitor parking spaces are reserved for our guests.

3.17 Severe Weather And Operational Disruption Policy The Company will continuously endeavor to meet customer needs and to provide the highest level of customer service consistent with the safety and security of our Associates, which is the Company’s primary concern. To do so, the Company’s world headquarters location will remain open for normal business operations whenever possible. In the event that conditions beyond the Company’s control disrupt operations or limit access to or use of the Company’s headquarters, the Company will attempt to provide the highest level of limited service attainable under the circumstances.

1. During severe weather conditions or under other conditions beyond the Company’s control which disrupt operations or limit access to the facility, Associates should observe the conditions and determine whether it is unduly hazardous to report to work or remain at work. Severe weather or



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other similar conditions (“Severe Conditions”) are those circumstances that may create hazards for Associates traveling to and from the facility or which prevent safe occupancy of the facility, including but not limited to freezing rain, snow and/or ice accumulation, and electrical outage.

2. During periods of Severe Conditions, the Chief Administrative Officer,

Chief Financial Officer, Director of Human Resources, or their delegates may issue an announcement regarding an office closure.

3. The Company will attempt to broadcast notification of an office closure

through local media outlets. 4. To provide the highest level of limited service attainable during an office

closure, the following departments will be considered Continuous Service Units:

Management Personnel Maintenance Transportation and Distribution Services

5. Managers within each Continuous Service Unit will determine the level of

staffing necessary to provide the highest level of limited service attainable under Severe Conditions and may designate appropriate Associates as Continuous Service Associates.

6. Associates who have been designated as Continuous Service Associates

should make every reasonable effort to report to work or remain at work during Severe Conditions, consistent with their personal safety.

7. Continuous Service Associates unable to report to work must contact their

manager or supervisor within thirty minutes of normal starting time. If the Associate’s manager or supervisor is unavailable, an Associate may report the absence through the manager’s or supervisor’s voice mail but should make a continued effort to speak personally with the Associate’s manager or supervisor.

8. The following attendance and compensation policy shall be in effect for

Associates in the event of Severe Conditions or office closure:

a. If PTO is available, hourly Associates who are unable to report to work due to Severe Conditions must use available PTO. If PTO is unavailable, hourly Associates will not be paid for time off.

b. Hourly Associates who are unable to report to work due to Severe

Conditions but have made prior arrangements with their manager



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or supervisor to work from home may do so with the approval of the Associate’s manager or supervisor. The manager or supervisor must record the Associate’s work hours with the Payroll Department.

c. Salaried Associates who are unable to report to work due to Severe

Conditions are requested to work from home. Salaried Associates who are unable to work from home must use available PTO.

d. In the event of a facility closure, Associates reporting to work after

the Associate’s regular starting time may be paid as if the Associate started at the regular starting time. The Company will make the determination after careful consideration of the impact of the Severe Condition.

3.18 Subpoenas And Requests For Information If you are served a subpoena or receive a request from a government agency for Company documents or information as part of a claim or lawsuit relating to the Company, or from a person or entity who might be considering a claim or lawsuit relating to the Company, the subpoena or request should be forwarded to the Legal Department. If a subpoena or request calls for your personal appearance as a Company representative, the Legal Department will assist you with such an appearance.

3.19 Public Officials And Media Representatives Only designated Associates are authorized to talk to public officials and the media as representatives of the Company or on the Company's behalf. If a public official, agency representative, or the media asks you for a statement on behalf of the Company, politely state that you will contact the appropriate person who will respond promptly. An exception would be directing law enforcement or emergency personnel in the event they are responding to a 911 call or other emergency. If this occurs, please notify your supervisor or manager, Human Resources or the Legal Department immediately.

3.20 References If you are asked to provide references or other information, orally or in writing, to persons outside of the Company about current or former Associates, you must decline to do so. Refer these requests to Payroll for employment verification.



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3.21 Internal Investigations And Searches From time to time, the Company may conduct internal investigations pertaining to security, auditing or work-related matters. Associates are required to cooperate fully with and assist in these investigations if requested to do so. Whenever necessary, in the Company's discretion, work areas (i.e., desks, file cabinets, etc.) and personal belongings (i.e., brief cases, handbags, etc.) may be subject to a search without notice. Associates are required to cooperate. The Company will generally try to obtain an Associate’s consent before conducting a search of work areas or personal belongings, but may not always be able to do so.



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SECTION 4 - COMPANY WORK RULES The Company has established rules which it considers necessary to ensure the orderly and efficient conduct of the business and to provide a good place to work for all Associates. All Associates are expected to observe these rules and to use good judgment in honoring their intent. These rules do not modify the Company’s policy of at-will employment nor do they impose any contractual obligation on the Company. The work rules are not intended to include all possible grounds for discipline. They simply establish general rules and guidelines which are accepted as proper in any business. Regardless of the group of the offense, the Company at its sole discretion shall consider or issue disciplinary action ranging from counseling to discharge.

4.1 Group One Offenses

There are certain major offenses that would almost always result in discharge. Some examples of such offenses are:

1. Violation of the Company's Drug and Alcohol Policy. 2. Insubordination (e.g., refusal to promptly obey work instruction or job

assignment from a supervisor). 3. Failure or refusal to perform assigned work. 4. Theft. 5. Dishonesty. 6. Falsification of a record or supplying falsified information (such as payroll

information, employment application, medical, insurance, time card, production record, leave paperwork, etc.).

7. Abusive horseplay. 8. Intentional abuse or destruction of property belonging to the Company, a

customer, supplier, or other Associate. 9. Sleeping on duty. 10. Fighting or provoking a fight on Company premises.



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11. Engaging in any act of violence or threats, threatening conduct, or communication.

12. Removing or attempting to remove property belonging to the Company, a

customer, supplier, or Associate from the premises without proper authorization. The Company reserves the right to inspect all parcels carried by Associates off the premises. Refusal to submit immediately to such inspection is a separate violation of this rule.

13. Possession of explosives, firearms or other weapons, including concealed

weapons, on Company premises. 14. Assault or deliberate attempt to injure a customer, supplier or Associate. 15. Leaving Company premises without permission during working hours. 16. Threatening a customer, supplier or Associate with injury to person or

property. 17. Offering to take or taking a bribe or kickback of any kind in connection with

work. 18. Deliberate interference with production, or with the work of another

Associate. 19. Clocking in or out of the timekeeping system using another Associate's login

or asking another Associate to clock in or out for you. 20. Failure or refusal to use required safety equipment. 21. Immoral or indecent conduct on Company premises. 22. Reckless conduct which threatens or results in injury to person or property. 23. Failure to report to work without calling in for two (2) consecutive scheduled

work days. 24. Association with any business enterprise in competition with the Company. 25. Unauthorized disclosure of confidential business information belonging to

the Company.



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4.2 Group Two Offenses These offenses are of the nature that may be solved by counseling and discipline. However, depending upon the circumstances and the Associate's prior record, a violation may result in more serious disciplinary action, up to and including discharge. Some examples of such offenses are:

1. Poor work performance. 2. Leaving your work area or entering another work area without permission or

authority. 3. Horseplay. 4. Operating equipment without authority. 5. Use of rude, obscene, threatening or abusive language or conduct. 6. Failure to report defective equipment or safety hazards. 7. Failure to complete records promptly and accurately. 8. Misuse of Company property. 9. Failure to report an injury or accident immediately. 10. Loafing on the job. 11. Unauthorized interference with production, or with the work of another

Associate. 12. Tardiness in returning from lunch or break period. 13. Neglect of job duties. 14. Negligent abuse or destruction of property belonging to the Company, a

supplier, customer, or Associate. 15. Repeated failure to clock in or out. 16. Failure to follow scheduled clean-up times. 17. Entering the building or remaining on the premises without permission

unless on duty or scheduled to work.



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18. Making or publishing of deliberately false or defamatory statements about the Company, a Company product, or an Associate, including statements made on social media.

19. Working unauthorized overtime. 20. Exceeding the number or length of breaks allowed. 21. Smoking or using tobacco products, smokeless tobacco products, or

unregulated nicotine products (i.e. “e-cigarettes”) anywhere at any time on Company property.

22. Inappropriate grooming or dress. 23. Absenteeism or tardiness 24. Unauthorized gambling on Company premises or during working hours. 25. Violation of policies against discrimination or harassment. 26. Food or drinks consumed or found on the production floor.

4.3 Safety Rules And Guidelines The Company recognizes that safety is essential. It is important to production, quality, efficient operation, and worker satisfaction. No job is so important and no need is so great that we cannot take time to perform our work safely and effectively. The following is a list of general safety rules that must be followed at all times. Other rules will be published as the need arises. This list cannot be expected to cover all situations. Your cooperation in following these rules will help eliminate the possibility of injuries. Violation of these rules may result in disciplinary action up to and including discharge.

1. Where climbing is necessary, proper ladders and ladder safety devices must be used.

2. Always use a safety harness when operating or working on a forklift or

“order picker” of any kind. 3. Always wear your safety belt when driving a vehicle, forklift, or other

machinery on company business. 4. Always use proper lifting techniques when lifting or handling objects.



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5. You must follow the guidelines of:

Hazard Communications Guidelines Personal Protective Equipment Guidelines Safety Lift Back Support Program Lock Out – Tag Out Program Blood Borne Pathogens Guidelines and Precautions Shoe Policy Rules

*See your supervisor, manager, or Human Resources Department for specifics. 6. Know the location of the nearest evacuation route. 7. Know the location of the nearest fire extinguisher to your workstation. 8. All areas, aisles, and exits should be clean and clear. 9. All Associates should practice good housekeeping. 10. Follow all sanitation and hygiene responsibilities. 11. Use of compressed air in cleaning clothing or person is prohibited. 12. Clean up any water or slippery substance on the floor. 13. Loose clothing, jewelry, neckties, rings, etc., which may get caught in the

machinery may not be worn. 14. No shoes with open toes, open heels, open sides, spiked high heels, flip

flops, or bedroom slippers are to be worn in the manufacturing or warehouse areas during working hours. The entire foot must be covered. Leather tennis shoes or boots are recommended. Office Associates are permitted to wear closed toe, open back shoes. However, Office Associates cannot enter the manufacturing or warehouse areas with any type of open shoe; they must adhere to the regulations for those areas.

15. No machinery shall be operated until all safety guards are in place (i.e. eye

guards, finger guards, etc.). 16. Never repair equipment or machinery until it has been properly shut down

and if needed, locked out according to the lock out procedures. 17. Unauthorized operating or tampering with equipment is prohibited.



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18. All machines must be turned off and all irons unplugged at the end of the working day.

19. Obey all safety, instructional, and danger signs. 20. Follow all guidelines and regulations set up by your State Worker’s

Compensation Board. 21. Report ANY UNSAFE ACTS OR UNSAFE CONDITIONS to your supervisor

or manager immediately. 22. Report any injury or illness (regardless of how minor) due to a work-related

accident or incident immediately to your supervisor. 23. Company policy prohibits smoking and other tobacco use on Company

property. Smoking inside buildings presents a fire hazard particularly in areas where cotton dust and lint accumulate and textile products are stored. Fires involving cotton dust and lint spread quickly due to their high combustible properties, which can result in widespread property damage and potential injury and loss of life. Therefore, smoking inside any STC building will result in severe disciplinary action up to and including immediate termination.

24. All refuse should be disposed of properly. For example, liquids should not

be deposited in trashcans or wastebaskets. Paper clips and staples should not be left on the floor.

25. Associates are required to wear a seat belt while driving or riding in a

Company vehicle, or while driving or riding in a car while on Company business.

Remember, you can make a difference when it comes to safety.

Use Common Sense.



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SECTION 5 - DRUG AND ALCOHOL POLICY The Company is committed to providing a drug and alcohol-free workplace. This is the Company's policy, and it is consistent with its obligation as a federal contractor under the federal Drug-Free Workplace Act of 1988.

5.1 Rules 1. No Associate may manufacture, distribute, dispense, possess, buy, sell or use any

alcohol, illegal drugs or controlled substances while on the job, during a meal or break period, or while on Company property (including parking lot and grounds). The penalty for this is discharge.

2. No Associate may report to work or be at work under the influence of alcohol or

drugs. Violation of this will subject the Associate to discharge. Being under the influence will not excuse any other violation of Company rules or standards, under this policy or otherwise. Any positive drug test results, and any blood alcohol level test at .02 or above, will be treated as being under the influence for purposes of this rule.

3. The only exception to paragraphs 1 and 2 is for prescribed (for the Associate) or

over-the-counter medication, and even then, the Associate must notify the Company before starting work if the medications may impair his or her ability to do his job. Impairment is just as serious when caused by medication; failure to report potential impairments will be treated under paragraph 2 of this section.

4. Anyone involved in the illegal trafficking of drugs, or illegal conduct consistent with

trafficking of drugs, on or off Company premises, will be discharged. 5. All Associates must report to the Company any drug conviction occurring during

their employment no later than five (5) days after such conviction. Violation of this will subject the Associate to discharge.

6. Any refusal under this policy to take a test, to cooperate fully, or to sign the

necessary papers, when ordered to do so, will result in discharge. 7. When there is reasonable suspicion that an Associate has violated this policy, the

Company may inspect the Associate, the Associate's locker, desk, and other Company property under the Associate's control, and the Associate's personal effects and vehicle on Company property. This does not limit the Company's right to so inspect in other circumstances, when it has determined that it is in its business interests to do so. Refusal to cooperate will result in discharge.



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8. A drug and alcohol problem will not excuse any violation of Company rules or standards, under this policy or otherwise, whether the Associate seeks treatment or not.

Associates are urged to seek professional help for a drug/alcohol related problem

before disciplinary action is necessary. If any Associate seeks treatment before violating any Company rule or standard, and the treatment requires that the Associate not work for a period of time, the Company may, at its discretion, grant the Associate a leave of absence, without pay. The leave will be subject to the terms of applicable health and disability insurance policies, if the Associate has coverage.

Any costs associated with treatment that are not covered by the Associate's

insurance will be the responsibility of the Associate. This leave will be conditioned upon receipt of reports from the treatment providers that the Associate is cooperating and making reasonable progress in the treatment program. The Associate will be permitted to return to work only if he or she passes a drug/alcohol test and has satisfactory medical evidence that he or she is fit for work.

9. Consistent with applicable law, the Company may require drug or alcohol testing

randomly or under any of the following circumstances:

a. Applicants. Applicants will be required to pass a test to be considered for employment. An applicant who tests positive will not be hired at that time, but may reapply for employment after six months.

b. There is reasonable suspicion of a problem. The Company may test an

Associate whenever it in good faith reasonably suspects that there is a drug or alcohol related problem.

c. After a positive test result. Any Associate who returns to work after a

suspension or leave related to a positive test or otherwise related to drugs or alcohol may be tested at any time for the remainder of his or her employment.

d. Post Accident. The Company may require a test whenever an Associate

suffers, or might have contributed to, an on-the-job injury to person or property.

e. Required by law. The Company will test in any other circumstances required

by law.



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SECTION 6 - BENEFITS

6.1 Group Insurance Plans 1. Coverage. The Company provides group health and term-life plans for all regular

Associates who are employed on average at least 30 hours per week. Associates may elect coverage after the benefits waiting period, during the annual open enrollment period, or when they have a change in family status. The Company pays a portion of the cost of the group health plans, and Associates electing coverage must also pay a portion of the cost of the plan. The Company reserves the right to change the amount that Associates must pay for coverage under the plans, based upon changes in the cost of the plans to the Company. COBRA continuation coverage is a temporary extension of coverage under the Standard Textile Co., Inc. Health Care Plan (the Plan). COBRA continuation coverage can become available to you and to other members of your family who are covered under the Plan when you would otherwise lose your group health coverage. The Company provides coverage for life, accidental death and dismemberment at no cost to Associates working 30 hours or more per week. More information on all insurance plans is available to Associates in summary plan descriptions that are available for your review.

2. Benefits Waiting Period. Full-time Associates will be eligible for the following

benefits coverage after completing one full calendar month of service:

Health, dental and vision plans Flexible Spending Account 401K

3. Continuation of Healthcare Coverage. Health insurance coverage continues

throughout the period of disability. Associates on leave will be billed weekly for their share of the monthly premium. Health insurance benefits are subject to cancellation if the Associate fails to pay his or her portion of the premium.

4. Controlling Documents. The Company will provide each covered Associate with a

summary plan description or policy booklet for each plan. All rights, benefits, limitations, and conditions of coverage shall be governed by the plan documents and policy booklets.

5. Reservation of Rights. The Company reserves the right to change or eliminate

these plans. Associates will be notified of any change. The Company’s liability under these plans is limited to its share of the premiums, except to the extent the Company chooses to self-insure.



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6. Associate Information. You must notify the Human Resources Department of contact information for and events which may have an impact on medical coverage for your spouse or dependents.

6.2 Holidays 1. Paid Holidays. The Company observes a number of holidays each year. The

following are paid holidays: New Year's Day, Memorial Day, Independence Day, Labor Day, Thanksgiving, Christmas Eve, and Christmas Day. If any of these holidays fall on a weekend, the day on which the holiday is observed will be determined by the Company.

2. Eligibility. To be eligible for holiday pay, Associates must work the entire last

scheduled work day before the holiday and the entire first scheduled work day following the holiday unless absent due to paid time off, jury duty, approved personal leave or approved disability leave. An Associate may not be on disciplinary suspension or be compensated under a disability program at the time of the holiday.

Part-time Associates are eligible for Holiday Pay if the holiday falls on a day that

the part-time Associate would normally work. 3. Holiday Work. On some holidays, it may be necessary for some departments to

maintain operations. Associates who fail to work all scheduled hours on the holiday if scheduled for work on that day will not receive the holiday pay, unless the Associate can prove that the absence was due to approved PTO, approved PTO for funeral leave, approved required court appearance, or approved military leave.

4. Holiday Pay. Eligible hourly Associates will receive holiday pay at their normal

straight time hourly rate for their normal workday, up to a maximum of eight (8) hours. Incentive Associates will receive holiday pay based on their average incentive rate for their most recent four (4) weeks of work. Part-time Associates will receive pro-rated holiday pay. Associates who are scheduled to work on a paid holiday will receive time and one-half their regular base wage for all hours worked that day in addition to the holiday pay.

6.3 Paid Time Off Policy Rather than separate vacation time, personal time, and sick time, the Company combines each of these three benefits into a single category called Paid-Time Off (PTO). PTO gives Associates more flexibility to be paid for time off taken from work for personal reasons including, for example, vacation, personal or family illness, bereavement leave, jury duty, appearances required pursuant to a subpoena, witness



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duty, or personal days off. It is up to each Associate, in consultation with his or her manager or supervisor, to wisely manage his or her available paid time off over the course of each year to allow for unanticipated needs. The policy differs slightly in the case of salary as opposed to hourly Associates due to the requirements of federal wage and hour regulations. PTO is generally awarded based on the following schedule, subject to the provisions outlined below: Schedule of PTO Days: Days eligible First full calendar year 6 Second full calendar year 14 Third full calendar year 14 Fourth full calendar year 16 5-10 full calendar years 19 11-20 full calendar years 24 21 or more full calendar years 29

1. New Hire Eligibility. After completing one full calendar month of employment, new Associates will be granted a bank of paid time off according to the schedule below.

Hired in First Quarter, 3 days of paid time off granted. Hired in Second Quarter, 2 days of paid time off granted. Hired in Third Quarter, 1 days of paid time off granted. Hired in Fourth Quarter, no paid time off granted for current calendar year.

2. PTO Award during First Full Calendar Year. On January 1 following the year in

which the Associate was hired, Associates are eligible to receive PTO days based on the number of hours the Associate is expected to work. An Associate must be expected to work at least 1,600 hours during their first full calendar year to be eligible for the full 6 days of PTO. Associates expected to work less than 1,600 hours will earn PTO days on a pro-rated basis in accordance with the schedule listed in section 3, below.

3. PTO Award after First Full Calendar Year. After the Associate’s first full calendar

year of employment, PTO is awarded based on the hours actually worked by the Associate during the previous calendar year. During an Associate’s first full calendar year of employment, the Associate must work at least 1,600 hours to receive the maximum number of PTO days during the second full calendar year of employment. After that, an Associate must work at least 1,600 hours in each calendar year in order to receive the maximum number of PTO days during the following calendar year. Hours not worked due to short-term or long-term disability leave, absences due to events covered by workers compensation, or



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other leaves of absence are included among total hours worked for purposes of this policy. Associates who do not meet the 1,600 hour minimum may earn pay for paid time off on a pro-rated basis, as follows:

Hours worked during previous year: Percentage of PTO days earned At least 800 but less than 1,000 20% At least 1,000 but less than 1,200 40% At least 1,200 but less than 1,400 60% At least 1,400 but less than 1,600 80% At least 1,600 100% Example of PTO Accrual: An Associate is hired to work full-time on September 1, 2014. The Associate receives 1 day of PTO after completing one full month of employment because he/she was hired in the Third Quarter.

First Full Calendar Year (2015): On January 1, 2015, the Associate receives 6 days of PTO because he/she is expected to work at least 1,600 hours during 2015.

Second Full Calendar Year (2016): If the Associate worked at least 1,600 hours

during 2015, he/she is eligible for 14 days of PTO on January 1, 2016. If the Associate worked less than 1,600 hours during 2015, he/she is eligible for a pro-rated amount of 14 PTO days on January 1, 2016. For example, if the Associate worked 1,300 hours during 2015, he/she would be eligible for 8 PTO days on January 1, 2016 (60% of the 14 days that he/she is eligible for based on his/her second calendar year of employment).

4. Scheduling. The Company may determine the PTO schedule for its Associates.

Associates must use PTO time for any regularly scheduled plant shutdown period(s). Any additional PTO time must be scheduled seven (7) days in advance whenever possible with the approval of your supervisor and your department manager. Whenever possible, conflicts among requests submitted seven (7) days in advance will be resolved by length of service with the Company. PTO may be used for unavoidable absences in some cases without requiring a seven (7) day notice. The supervisor or department manager must be notified immediately and approve this request. If an Associate would like to use available PTO for an unscheduled sick day, the Associate must bring in a note from the doctor verifying that the absence was due to a medical situation.



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The Company will normally not permit more than two (2) consecutive weeks of PTO. Any other conflicts will be reviewed with the department manager and Human Resources Department. All Personal, Medical, and FMLA leaves are without pay except to the extent where paid leave is available. This includes any PTO days. Paid time off may be taken in increments of no less than one hour (and in the case of salaried Associates, one full day). For each day of paid time off, an Associate will be paid at his or her normal rate of pay, as if he or she would have normally been scheduled to work. For incentive Associates, this will be based on incentive pay for the most recent four (4) week average.

5. Payment for unused time. At the end of the year, Associates may be paid for unused PTO to a maximum of five (5) days. PTO pay out for eligible locations will be paid on the 2nd pay period in January of the following year.

There will be two PTO payout options for all hourly eligible Associates:

a) Option One: Pay out of remaining PTO b) Option Two: Transfer of equivalent funds to the Associate’s 401(k)

account

If the Associate does not select an option, it will default to Option One, payout of remaining PTO at the bonus rate.

6. Payment of PTO upon leaving the Company. The amount of PTO that an

Associate will receive and be compensated for upon leaving the Company will be prorated based on the date the Associate leaves the Company. Any PTO time which an Associate has used during the year will be deducted from the prorated PTO. An Associate leaving the Company will also be paid for any unused PTO which the Associate has carried over from the previous year. Associates whose length of service with the Company is less than two years from date of hire are not eligible for payment of accrued paid time off when leaving the Company. An Associate who terminates his or her employment without giving two weeks written notice, regardless of the Associate’s length of service, also will not be eligible for payment for accrued paid time off.

6.4 401(K) Profit Sharing Program The Company maintains a 401(k) Profit Sharing Program that provides retirement benefits for all eligible Associates. Please refer to your Profit Sharing Plan Summary



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Description booklet for details. If you do not have a copy, you may obtain one from the Human Resources Department.

6.5 Associate Assistance Program From time to time, anyone can experience personal difficulties which can be emotionally, mentally, or physically disruptive. To help Associates deal with such problems and to minimize their effect on work performance, the Company has established an Associate Assistance Program. Here, Associates can obtain assistance with such matters as family or marital conflicts, divorce, death, chemical dependency, legal, or financial problems. Associates should contact the Associate Assistance Program directly. If Associates require further assistance, please contact your manager or the Human Resources Department for a confidential discussion or referral. A separate brochure describing the Program is available to all Associates. Please understand that the Company claims no professional expertise; if you wish, you may be referred to a professional for further assistance. At times, exceptions to confidentiality may have to be made, including: (1) disclosure of violations of Company rules and policies; (2) when life or safety is threatened; (3) when disclosure is required by law; (4) when the Associate is referred by the Company and the information is pertinent to the referral; and (5) when necessary to respond to a claim by the Associate or other person covered by the Program against the Company.

6.6 Tuition Assistance Program The Company is committed to the professional development of every Associate, and has established a Tuition Assistance Program to support Associates in enhancing their professional development. To be eligible, Associates must have completed one full year of employment with the Company, and be working full time. You should discuss additional professional education related to your work with your manager. Acceptance for tuition assistance will be based on past work performance, increased competence in your present position, preparation for future opportunities or advancement, required education or certification within your position, and the relationship between your current or future position and the course work. If you wish to participate in the Company’s Tuition Assistance Program, please be sure to complete and submit the required program application at least eight weeks in advance of course enrollment. You may request a program application and additional information from the Human Resources Department.



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6.7 Credit Union Company Associates and their families are eligible for membership in a credit union. A brochure describing the services offered by the credit union may be obtained from the Human Resources Department.

6.8 Additional Benefits 1. Break periods. Associates will be assigned lunch and rest breaks based on their

weekly schedule. These periods will be scheduled along with the lunch period to provide adequate coverage throughout the day.

2. Break Area. Our eating facilities include a break room. There are also vending

machines and microwaves that may be used to prepare a hot meal. It is expected that each Associate will leave the dining area in good order so that it may be enjoyed by all Associates. No food may be consumed outside of the break room. Drinks are only permitted in designated areas provided they are contained in covered cups. Please check with your supervisor regarding the designated areas.

3. Workers’ Compensation. The Company pays the entire cost of workers'

compensation insurance. This benefit protects you in case of an occupational injury. It pays for the doctor visits and expenses related to such injury as well as a benefit for loss of income following a state-mandated waiting period. Work-related injuries, no matter how slight, must be reported as soon as possible to the manager. Proper medical treatment will be arranged by the Company. An accident report must be completed and submitted to the manager. The Company and/or insurance carrier will manage and coordinate all workers’ compensation claims and resulting medical treatment.

4. Wellness Programs & Events. Our Wellness programs and events include an

annual Health Fair and a Wellness Newsletter.