INFORMATION HANDBOOK FOR EMPLOYEES Of N.C. …training, promotion, demotion, discipline, rates of...

INFORMATIONHANDBOOK

FOR

EMPLOYEES

Of

N.C.STURGEON,LP

P.O.BOX607082800WINDECKER

MIDLAND,TEXAS79711

DevelopedbyJerryR.Hopper&Associates

P.O.Box2375ChapelHill,NorthCarolina27515-2375

(919)929-2634

NOTHINGCONTAINEDINTHISHANDBOOKISINTENDEDTOCREATE(NORSHALLBECONSTRUEDASCREATING)ACONTRACTOFEMPLOYMENT(EXPRESSORIMPLIED)ORGUARANTEEEMPLOYMENTFORANTYTERMORFORANYSPECIFICPROCEDURES.THEREISNOCONTRACTOFEMPLOYMENTBETWEENN.C.STURGEON,LPANDANYONEORALLOFITSEMPLOYEES.EMPLOYMENTSECURITYCANNOTBEGUARANTEEDFORORBYANYEMPLOYEE.

_______________________________________________TableofContents

TableofContents……………………………………………………………………………………………………..i

Foreword…………………………………………………………………………………………………………………ii

ManagementPhilosophy…………………………………………………………………………………………iii

Section1:Employment………………………………………………………………………………….Page01

Section2:WorkingHoursandPay…………………………………………………………………Page10

Section3:Benefits…………………………………………………………………………………………Page17

Section4:TransferofEmployees,SeparationFromEmployment AndLeaveofAbsence……………………………………………………………………Page29

Section5:WorkPoliciesandRegulations……………………………………………………….Page32

Section6:ConflictsofInterest……………………………………………………………………….Page38

Section7:RulesToHelpUsAll………………………………………………………………………Page40

Section8:Safety……………………………………………………………………………………………Page42

Section9:TransportationandTravelExpenses……………………………………………..Page46

Section10:EmployeeConcerns…………………………………………………………………….Page48

AcknowledgmentofReceipt/UnderstandingofHandbook……………………………Page49

AcknowledgmentofReceipt/UnderstandingDrug-FreeWorkplace……..……….Page55

“FitofDuty”TestingAfterAnInjuryorIllness……………………………………..………..Page56

ReturntoWorkAfterAnInjuryorIllness……………………………………………………….Page57

i

______________________________________________________________Foreword

Webelieveinkeepingemployeesfullyinformedaboutourpolicies,procedures,practices,benefits,whatemployeescanexpectfromthecompany,andtheobligationsassumedasanemployeeforN.C.Sturgeon,LP.Thispracticeisdesignedtoprovidefairtreatmentofemployees.Allemployeesareexpectedtobecomefamiliarwiththepolicies,procedures,practices,andbenefitsofN.C.STURGEON,LP.Thishandbookisintendedtoprovideemployeeswithbasicinformation.ThepoliciesandpracticesdescribedinthishandbookreflectagreatdealofconcernforthepeoplewhomakeitpossibleforN.C.STURGEON,LPtoexist….itsemployees.Nothingcontainedinthishandbookisintendedtocreateacontract(expressorimplied),orotherwisetocreatelegallyenforceableobligationsonthepartofN.C.STURGEON,LPoritsemployees. BecauseN.C.STURGEON,LPisgrowingchangingorganization,itreservesfulldiscretiontoaddto,modify,ordeleteprovisionsofthisofthishandbookatanytimewithoutadvancenotice.Forthisreason,employeesshouldcheckwithChuckSturgeon,President(orhissuccessor),TheGeneralSuperintendent,orTheBookkeepertoobtaincurrentinformationregardingthestatusofanyparticularpolicy,procedureorpractice.NoindividualotherthanthePresidentofN.C.STURGEON,LPhastheauthoritytoenterintoanemploymentagreementoranyagreementthatmodifiescompanypolicy.AnysuchmodificationmustbeinwritingandmustbesignedbythePresidentofN.C.STURGEON,LP. AllemploymentatN.C.STURGEON,LPisatwill.AtwillmeansthatbothemployeesandN.C.STURGEON,LPhavetherighttoterminateemploymentatanytime,withorwithoutadvancenotice,andwithorwithoutcause.NooneotherthanthePresidentofN.C.STURGEON,LPhastheauthoritytoalterthisagreement,toenterintoanagreementforemploymentforaspecifiedperiodoftime,ortomakeanyagreementcontrarytothispolicy,andanysuchagreementmustbeinwritingandmustbesignedbythePresidentofN.C.STURGEON,LP. Descriptionsofvariousfringebenefits(suchasgroupinsurance)aresummariesonly.Shouldthedescriptionsinthishandbookdifferwithanyformalagreementordocumentinvolved,theformalagreementordocumentshallbeconsideredcorrect.Thepolicies,practicesanditsdescribedreplaceallearlierwrittenandunwrittenones.

ii

_________________________________________ManagementPhilosophy

N.C.STURGEON,LPpledgestoitsemployeesthataslongastheaffairsofthiscompanyareinourhands,thefollowingprincipleswillgovernouractionswithemployees.

N.C.STURGEON,LPemployeesandtheirwelfareareveryimportanttothesuccessofourcompany.Ourlongrangeobjectiveisthecontinuousdevelopmentofagrowingandprosperingbusinessthroughwhichboththeemployeesandthecompanywillbenefit.Everyemployeeisconsideredamemberofourcompanyteam.Oursuccessasacompanyisbuiltontherecognitionoftheskillsandeffortsmadebyeachemployee.Itisourpolicytoworkwithallmembersofourteaminafairandfriendlymannerandtotreateachteammemberwithdignityandrespect.

ThemanagementofN.C.STURGEON,LPwillworkcontinuallyforthebenefitofourpresentandprospectivecustomersaswellasouremployeestoimprovethecompetitivepositionofourcompany.Thiswillenableustoprovideexcellentjobsforourteammembers.

Generalconditionssuchassafety,cleanliness,andemployeeaccommodationswillbeevaluatedperiodicallyforpossibleimprovementandwillalwayscomparefavorablywithgoodindustrypractice.Wewillbepleasedtomeetworkingconditions.

WewilldevoteourbestefforttoconductinganexpandingbusinesswithinwhichwillprevailsanatmosphereofharmonywithopportunityforallemployeesofN.C.STURGEON,LP.

ChuckSturgeon,PresidentN.C.Sturgeon,LP

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SECTION1 EMPLOYMENTAPPLICATIONFOREMPLOYMENT

AllcandidatesforemploymentwithN.C.Sturgeon,LPmustfullycomplete,dateandsignthecompany’sstandardemploymentapplicationform.(Aresumewillnotbeacceptedinlieuofacompletedemploymentapplication.)Theapplicationformshouldbecompletedindetailandsignedbytheapplicanttoverifytheaccuracyandcompletenessofpreviousemploymentandpersonalinformation.

Thecompanymayinvestigateanyportionoftherequestedinformationandmaydenyorlaterterminatetheemploymentofanyonegivingfalse,misleading,orincompleteinformation.

Thecompletedemploymentapplicationformwillbemadepartofthepersonnelfileofthoseapplicantsacceptedforemployment. Anemploymentapplicationformcompletedbyanapplicantnotselectedforavailableopeningswillbemaintainedinanactivefileforaminimumoftwelve(12)monthsandreviewedassuitableopeningsoccur.

CONFIRMATIONOFPREVIOUSEMPLOYMENT

ItisthepolicyofN.C.Sturgeon,LPtorequestinformationfromaprospectiveemployee’spreviousemployer(s)inordertoobtaintheprospectiveemployee’sworkrecordasitpertainstohis/herapplicationforemployment.

COMPLIANCEINFORMATION

Inorderforthecompanytocomplywithfederalgovernmentregulationsregardingitspracticetoemploypeoplewithoutdiscrimination,itisnecessaryforthecompanytocompileandmaintaindetailedinformationoneachformalcandidateforemploymentandthosewhoarehired.

Thisinformationwillincludethecandidate’soremployee’ssex,race,andveteran’sstatusincludingserviceintheVietnamera.

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IMMIGRATIONLAWCOMPLIANCE N.C.Sturgeon,LPiscommittedtoemployingU.S.citizensandalienswhoareauthorizedtoworkintheUnitedStatesandwillnotunlawfullydiscriminateonthebasisofcitizenshipornationalorigin.

AsaconditionofemploymentandincompliancewiththefederalImmigrationandReformControlAct(IRCA)of1986,eachnewemployeemustcompleteanEmploymentEligibilityVerificationform(FormI-9)andpresentdocumentsthatestablishidentityandemploymenteligibility.

Identitycanbeestablishedbyprovidingdocumentationsuchasacurrentstate-issueddriver’slicense,astateissuedidentificationcard,orsimilardocumentsuchasaschoolI.D.withphotograph,voter’sregistrationcard,ormilitaryservicerecord.

AnemploymenteligibilitydocumentisaSocialSecuritycard,abirthcertificate,oranimmigrationdocument.

Ifproperidentityandemploymenteligibilitydocumentsarenotprovided,anemployeewillnotbeallowedtocontinueemployment.

MEDICALEXAMINATION Tohelpensurethatemployeesareabletoperformtheirdutiessafely,medicalexaminationsmayberequired.

Forcertainpositionsorundercertaincircumstancesandafteranofferofemployment,amedicalexaminationmayberequired.Whenamedicalexaminationisrequested,themedicalexaminationwillbeconductedbyacompanyappointedphysicianatthecompany’sexpense.Employmentandassignmentwillbeconditionalpendingthereceiptofasatisfactoryphysician’sreport.

Currentemployeesmayalsoberequiredtoundergomedicalexaminations.Whennecessary,theseexamswillevaluateanemployee’sabilitytoperformtheessentialfunctionsofthepositionorneedforpossibleaccommodation.Suchexaminationswillbeconductedforallemployeesinthesamejobcategoryandwillbescheduledatreasonabletimesandintervals.Theexamswillbeconductedattheemployer’sexpense.

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Anemployeewillnotbeallowedtocontinueemploymentwithoutprovidingproperidentificationdocuments.

DRUGTESTING

N.C.Sturgeon,LPiscommittedtoprovidingasafe,efficient,andproductiveenvironmentforallemployees;therefore,jobapplicantsandcurrentemployeesmaybeaskedtoprovidebodysubstancesamples(suchasurineand/orblood)todetermineillegaluseofdrugsoralcohol.Anyapplicantwhofailsthedrugtestwillnotbeacceptedforemployment.Anyemployeewhorefusestosubmittodrugtestingissubjecttodisciplinaryactionuptoandincludingterminationofemployment.

QuestionsconcerningthispolicyshouldbedirectedtoChuckSturgeon(orhissuccessor).

MOTORVEHICLERECORD(MVR)INQUIRY

Employeesmaybeexpectedtodrivecompanyvehiclesandmustprovidethecompanywithcurrentandacceptablemotorvehicledrivinginformation.Employmentand/orassignmentwillbeconditionalpendingthereceiptofasatisfactoryreportfromtheDepartmentofPublicSafety.

EQUALEMPLOYMENTOPPORTUNITYPOLICY

N.C.Sturgeon,LPwasbuiltuponteamworkandequalopportunity.Wewillcontinuetobesuccessfulwhenpeoplearetreatedfairlyandallowedtoadvanceandachievetheirfullpotential.Weareproudofthefactthatweextendequalemploymentopportunitiestoallqualifiedemployeesandapplicantsforemploymentwithoutregardtorace,color,religion,sex,age,nationalorigin,ordisability,whichifneedingaccommodation,maybereasonablyaccommodatedasrequiredbylaw.

Allphasesofemploymentincluding,butnotlimitedto,recruiting,hiring,selectionortraining,promotion,demotion,discipline,ratesofpayorothercompensation,transfer,layoff,termination,recalluseofallfacilities,andparticipationinallcompany-sponsoredactivities,willbeadministeredsoastofurthertheprincipleofequalemploymentopportunity.

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AFFIRMATIVEACTIONPLAN

N.C.Sturgeon,LPshallcontinuetobasedecisionsonemploymentsoastofurthertheprinciplesofequalemploymentopportunitybyhiringandemployingqualified,reliable,productiveemployeeswithoutregardtorace,color,religion,sex,age,nationalorigin,veteran’sstatus,andmentalorphysicaldisability.Inordertoimplementthispolicy,thecompanyhasadoptedanaffirmativeactionprogram.

N.C.Sturgeon,LPwillcooperatewithfederal,state,orlocalgovernmentagenciesthathavetheresponsibilityofobservingouractualcompliancewithvariouslawsrelatingtoemployment.Thecompanywillfurnishsuchreports,records,andothermattersasrequestedinordertofostertheprogramofequalopportunityforallpersonsregardlessofrace,color,religion,sex,agenationalorigin,disabledorVietnamEraveteranstatus,orphysicalormentaldisability.

ThecompanyhasdesignatedPattiAres(orhersuccessor)asitsEqualEmploymentOpportunityOfficer.TheEqualEmploymentOpportunityOfficerisresponsibleforcoordinatingallaspectsoftheEqualOpportunityprocesstoassureofnon-discriminationandcompliancewithallapplicableordersandguidelines.Questionsand/orcomplaintsconcerningequalemploymentopportunityshouldbedirectedtothecompany’sEqualEmploymentOpportunityOfficer.

EMPLOYMENTPROVISIONSOFTHEAMERICANSWITHDISABILITIESACT(ADA)

TitleIoftheAmericanswithDisabilitiesActprohibitsdiscriminationinanytermsorconditionsofemploymentforqualifiedindividualswithadisability.

TheAmericanswithDisabilitiesActrequiresthatemploymentdecisionsbebasedontheabilityofapersontoperformtheessentialfunctionsofajobandnottheperson’sdisabilityorlimitations.

Further,itrequiresmanagementtoreasonablyaccommodateindividualswithdisabilitieswhennecessary.

TocomplywiththeemploymentprovisionsoftheAmericanswithDisabilitiesAct,N.C.Sturgeon,LPwill:

• Identifytheessentialfunctionsofajob• Determinewhetherapersonwithadisability,withorwithoutaccommodation,isqualifiedto

performtheduties• Determinewhetherareasonableaccommodationcanbemadeforaqualifiedindividual.

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CATEGORIESOFEMPLOYEES

Employeesaredesignatedaseithernon-exemptorexemptfromfederalandstatewageandhourlaws.Non-exemptemployeesareentitlestoovertimepayunderspecificprovisionsoffederalandstatelaws.Exemptemployeesareexcludedfromspecificprovisionsoffederalandstatewageandhourlawsanddonotreceiveovertimepay.

Inadditiontothenon-exemptorexemptclassification,employeesaredividedintothefollowingcategoriesforthepurposeofcompensationandbenefiteligibility.Companypoliciesapplytoallcategoriesofemployees

FULL-TIMEEmployeeshiredfulltime(40hoursormore)onafullworkweekbasisforacontinuousandindefiniteperiodoftimeareconsideredfull-timeemployeesforallcompensationandbenefitpurposes.PART-TIMEEmployeeswhoseworkscheduleislessthanfull-time(lessthan40hours)onafullworkweekbasisforacontinuousandindefiniteperiodareconsideredpart-timeemployeesforallcompensationandbenefitpurposes.Part-timeemployeesareeligibleforsomebenefitsbyspecificreferenceonly.TEMPORARYEmployeeshiredastemporaryreplacementforfull-timeorpart-timeemployees,orforshortperiodsofemploymentsuchassummermonths,peakperiods,andvacationsareconsideredtemporaryemployees.Temporaryemployeesarenoteligibleforbenefitsregardlessofthenumberofhoursorweeksworked.

BENEFITELIGIBILITY

Theterm“eligibleemployee(s)”usedinSection3Benefitsofthishandbookreferstofull-timeemployee(s)unlessotherwisedesignated.Eachemployeewillbeadvisedofthestatusofhis/herpositionwhenhe/sheishired.

• Full-timeemployeesareentitledtothebenefitsstatedinthishandbookprovidedtheyqualifyforeachindividualbenefit.

• Part-timeemployeesareentitledtothoseemployeebenefitsspecificallydesignated.• Temporaryemployeesarenoteligibleforbenefits.

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ORIENTATION Followingtheacceptanceofemployment,theSupervisorwilldiscussjobdutiesandareasofresponsibilitywithanewemployee.Companypoliciesandprocedureswillalsobereviewed.AcopyoftheInformationHandbookforEmployeeswillbeavailableforthenewemployeetoreadandreview.

Afterreviewingthehandbook,theemployeemustsignastatementacknowledginghis/herunderstandingoftheinformationcontainedintheInformationHandbookforEmployees.ThisstatementmustbewitnessedbyanysalaryemployeeofN.C.SturgeonandmustbereturnedtotheHomeOfficewithinseven(7)daysofcommencementofemployment.Thissigned/witnessedcopyofthestatementwillbecomepartoftheemployee’spersonnelfile.

AcopyoftheInformationHandbookforEmployeeswillbeavailableforfuturereferenceforallemployees.

EVALUATIONPERIOD

Duringthefirstthirty(30)daysofemployment,N.C.Sturgeon,LPandeachnewemployeearegivenanopportunitytoevaluatewhethertheemploymentrelationshipshouldcontinue.

Beforetheendofthisthirty(30)dayperiod,theemployee’sperformancewillbeevaluated.Anemployeewhosatisfactorilycompletestheevaluationperiodwillbenotifiedbyhis/hersupervisorofhis/heremploymentstatus.

Duringtheevaluationperiod,anemployeemayvoluntarilyterminateemploymentwithoutnotice,oriftheperformanceoftheemployeeisnotsatisfactoryasdeterminedbyN.C.Sturgeon,LP,theemployeemaybereleasedwithorwithoutnotice.

Thecompletionoftheevaluationperiodshouldnotbeconsideredasaguaranteeofpermanentemployment.N.C.Sturgeon,LPevaluatesemployeesonacontinuingbasisandreservestherighttoterminateanemployeeatanytimeduringoraftertheevaluationperiod.

PAYROLLINFORMATION

Followingtheacceptanceofemployment,eachnewemployeewillbegivenfederalandstatetaxforms(alongwithinsuranceforms)tocomplete.Thecompletedforms,theemploymentapplicationform,andinformationregardingstartingpay,startingdateandanyotherpayorbenefitinformationwillbeforwardedtotheHomeOffice.

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CONTINUOUSSERVICEDATE

Sothatthecompanycanmaintainarecordofthebenefitsforeachemployee,acontinuousservicedatewillbeestablishedforeachfull-timeemployee.Thecontinuousservicedatewillbetheemployee’sfirstdayofemploymentandwillcontinueuninterruptedaslongashe/sheremainsafull-timeemployeeofN.C.Sturgeon,LP.

IDENTIFICATION

Someprojectsrequirespecialidentificationbadgesand/orcardsforN.C.Sturgeon,LPemployees.Employeeswillbeprovidedwithidentificationbadgesand/orcardswhentheyarenecessary.

EMPLOYMENTOFRELATIVES

Thecompanydiscouragestheemploymentofcloserelativesbecauseitisnotconsideredsoundbusinesspractice.However,undercertainconditions,managementmaywaivethispolicyinfavorofemployingcloserelativeswithintheorganization.

Forthepurposeofthispolicy,arelativeisanypersonwhoisrelatedbybloodormarriageorwhoserelationshipwiththeemployeeissimilartothatofpersonswhoarerelatedbybloodormarriage.

EMPLOYMENTOFMINORS

Thefollowingprovisionsapplywithrespecttothecompany’semploymentagerequirements:

• ThecompanywillfullycomplywiththeChildLaborprovisionsoftheFairLaborStandardsActandapplicablestatestatutes,whichgoverntheemploymentofminors.

• Forpurposeofinsurancerisk,itisthecompany’spolicytodiscouragetheemploymentofindividualsyoungerthanage18inanypositionwiththecompany.Inanycaseinvolvingthehireofapersonundertheageof18,awrittenreleasemustbesecuredfromaparent/guardianinadvanceoftheperson’sstartdate.

• Shouldthecompanyhaveanyreasontoquestionwhetheranindividualapplicantisunderage18;theapplicantmayberequiredtofurnishproofofbirthdate.

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EMPLOYEEINFORMATION

Employeesareaskedtohelpkeepthecompanyinformedaboutanymajorchangethatmayaffecttheiremploymentstatus.Eachemployeeisresponsibleforpromptlynotifyingthecompanyofimportantchangesinpersonneldata.Personneldatashouldbecurrentandaccurateatalltimesandanychangeofthefollowingshouldbereportedtoyoursupervisor.

• Name• Address• Hometelephonenumber• Maritalstatus• Numberofdependents• Emergencytelephonenumbersandwhomtonotifyincaseofemergency• Changeofbeneficiary• Drivingrecord• Authorizedpayrolldeductions• Additionaleducationandspecialtrainingcourses

PERSONNELFILES

N.C.Sturgeon,LPwillmaintainafileoneachemployee.Anemployee’spersonnelfilebeginswithhis/hercompletedemploymentapplicationform.Fromtimetotimevariousinformationwillbeaddedtothispersonnelfileregardinganindividual’semploymentstatuswiththecompany.PersonnelfilesarethepropertyofN.C.Sturgeon,LPandwillbetreatedthesameasanyotherconfidentialcompanyinformation.

• Thefollowingprovisionsapplywithrespecttothecompany’sstandardsforestablishing,maintaining,andhandlingemployeepersonnelfiles.

• AllofficialrecordsconcerninganemployeewillbekeptuptodateinsofaraspossibleandallemployeesshallpromptlyreportallpertinentpersonalinformationanddatachangestotheHomeOffice

• Employeeswillbepermittedtoreviewtheirpersonnelfilesaspermittedbyapplicablelaws.• Informationregardingthemedicalconditionorhistoryofanemployeewillbekeptinaseparate

filewithrestrictedaccess.• Thepersonnelfileofanemployeeterminatingemploymentwillbemaintainedinaccordance

withapplicablestateandfederallaws.

8

CONTENTSOFPERSONNELFILES

Employeepersonnelfilesmayincludethefollowing:

a) Originalemploymentapplicationb) EmploymentEligibilityVerification(FormI-9)c) Performingappraisalreportsd) Disciplinaryactionnoticese) SpecialCommendationinformationf) Educationalachievementrecordsg) Statuschangesaffectingemployee’sworkandsalaryhistoryh) Employee’sresume(ifsubmitted)i) Signed/WitnessedcopyoftheAcknowledgementofReceiptandUnderstandingj) OtherrelevantdocumentsasdeterminedbythePersonnelDepartment

EMPLOYEE’SREQUESTFORREVIEWOFPERSONNELFILE

Thefollowingprovisionsapplywithrespecttoanemployee’srequesttoreviewhis/herpersonnelfile:

• ThePersonnelDepartmentwillhavetheresponsibilityofcoordinatingthereviewofanemployee’spersonnelfilewiththeemployee’simmediatesupervisor.

• AmemberofthePersonneldepartmentstaffmustbepresentwhiletheemployeereviewshis/herpersonnelfile.

• Theemployeemaytakenotes,butmaynotremove,deface,orotherwisemakenotationsonthedocumentsinhis/herpersonnelfile.

• Uponrequestfromtheemployee,thecompanymayprovideacopyofanyitem(s)intheemployee’spersonnelfile.

MANAGEMENT’SREVIEWOFPERSONNELFILES

Allinformationinemployeepersonnelfilesisconsideredconfidential.ThisinformationwillonlybeavailabletothePersonnelDepartment,theemployee,seniormanagementpersonnel,andsupervisorsormanagerswhoareresponsiblefortheemployee.Anyviolationofthispolicyisconsideredaveryseriousoffense.

Oneexceptionwillbeinatransfersituationwherethesupervisorofthedepartmenttowhichanemployeemaybetransferredwillbeallowedtoreviewtheemployee’sfilewithapprovalofthePersonnelDepartmentandtheemployee’simmediatesupervisor.

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SECTION2 WORKINGHOURSANDPAYWORKINGHOURS

Thecompany’snormalworkweekbeginsat8:00a.m.Mondayandendsat5:00p.m.Friday;(however,regularworkinghoursmayvarydependingontheparticularjob,department,shift,orworkingconditions).Regularworkinghoursareasfollows:

Office 8:00a.m.to5:00p.m.daily (Monday–Friday) Witha1hourlunchbreak Field 7:30a.m.to4:00p.m.daily (Monday-Friday) Witha½hourlunchbreak Other _________a.m.to___________p.m.daily (__________-______________) Witha_____hourlunch/break Eachemployeeisexpectedtocompleteanormalworkdayandworkweekandworkwhateverreasonableadditionalhoursarerequiredtomeetcompanyneeds.

Supervisorswillinformemployeesofscheduledbreakand/orlunchperiods.Employeesareexpectedbackattheirworkstationreadytostartworkattheendofeachscheduledbreakand/orlunchperiod.Ifovertimeisrequired,employeeswillbeexpectedtoworkanyadditionaltimenecessary.

OVERTIME

Employeesmaybescheduledtoworkovertimewhenoperatingrequirementsorotherneedscannotbemetduringregularworkinghours.Wheneverpossible,advancenotificationwillbeprovided.Ifdeterminednecessary,overtimeworkwillbeauthorizedbymanagementbeyondanemployee’sstandardworkweek.Non-exempthourly-paidemployeeswillbepaidovertimecompensationinaccordancewithfederalandstatewageandhourprovisions.Overtimepayisbasedonactualhoursworked.Timeoffforvacationleave,sickleave,acompany-observedholidayoranyleaveofabsencewillnotbeconsideredashoursworkedwhencomputingovertime.

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Anyemployeewhofailstoworkscheduledovertimeorworksovertimewithoutpriorauthorizationfrommanagementwillbesubjecttodisciplinaryactionuptoandincludingterminationofemployment.

PREMIUMTIME

Hourlyemployeesrequiredtoworkontheirregularlyscheduledday(s)offwillbepaidoneandonehalf(1½)theirregularrateofpayregardlessofthenumberofhoursworkedintheworkweek.Premiumtimemustbeapprovedbyprojectsuperintendentpriortocommencementofpremiumtime.Allpremiumtimemustbeverifiedby“clockingin”ontimeclock.

REPORT-INPAY

Intheeventanemployeeistoldtoreportforworkandweatherorothercircumstancespreventsworkthatday,theemployeewillbepaidforone-hourshorttime.

PAYPERIODANDPAYMENT

Thepayperiodis: HourlyEmployees-------------------Weekly SalaryEmployees--------------------Semi-Monthly

1. HourlypersonnelarenormallypaidonThursdayforworkperformedMondaythroughSundayofthepreviousweek.

2. Salarypersonnelarenormallypaidonthe15thofthemonthforworkperformedthe1stthroughthe15thofthecurrentmonthandonthelastforworkperformedthe16ththroughthelastdayofthecurrentmonth.

PAYRATESCHEDULE(NON-EXEMPT)

Thecompanyhasestablishedcertainpayrateschedulesfornon-exemptemployeesbasedupontheworkclassifications.Thelengthoftimeinaclassificationisageneralguidelineonlyandbeingemployedbythecompanyforanyparticularperiodoftimedoesnotnecessarilymeanautomaticpromotion.

WORKCLASSIFICATIONS

A. AsagreedinInterviewThecompanyalsousesgeneralguidelinesforlevelsofqualification.Therateschedulewillbeexplainedtoanewemployeeatthetimeofhiring.

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RECORDINGTIMEWORKED

Governmentregulationsrequirethatthecompanykeepanaccuraterecordoftimeworkedbyemployeesinordertocalculatepaybenefits.

Non-exemptemployeesarerequiredtopunchinwhentheyreporttoworkandpunchoutwhentheyfinish.Theymustalsopunchinandpunchoutatlunchtime.

TimecardswillbemaintainedbySupervisorsforthoseemployeesunderhis/herresponsibility.

Itistheemployee’sresponsibilitytosignhis/hertimerecordtocertifytheaccuracyofalltimerecordedbeforesubmittingitforprocessing.Inaddition,ifcorrectionsormodificationsaremadetothetimerecord,boththeemployeeandSupervisorsmustverifytheaccuracyofthechangebyinitialingthetimerecord.

Itisaviolationofcompanypolicyforoneemployeetopunchanotheremployee’stimecard,toalteranotheremployee’stimecardoralterhis/herowntimecardwithoutpermission.

Ifanemployeehasaquestionconcerninghis/hertimecard,he/sheshoulddiscussthematterwithhis/herSupervisor.

Premiumtimewillnotbeconsideredunlessverifiedbytimeclock(filledoutbyhandbyemployeewillbedenied).

ATTENDANCE

Regularandon-timeattendanceisexpectedforefficientoperationsatN.C.Sturgeon,LP.Excessiveabsenteeismandtardinessisnotonlyinconvenientbutalsocausescostlyproblems.Whileitisrecognizedthatanoccasionalillnessorextenuatingpersonalreasonmaycauseunavoidableabsencefromworkortardiness,regularon-timeattendanceisrequiredforcontinuedemployment.

Employeesareexpectedtopersonallymaketheefforttonotifythecompanyofanyabsenceortardiness.Employeesshouldcontacthis/hersupervisordirectlytoreportanyabsenceorlatenesspriortotheirstartingtimesothatarrangementsmaybemadetoalterthedistributionofworkifnecessary.

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IftheSupervisorisnotavailable,thentheemployeeshouldnotifyhis/herForemanoftheabsenceorlateness.

Anyemployeewhofailstomaintainanacceptableattendancerecordwillbesubjecttodisciplinaryaction.Unexcusedabsenceortardinesswillaffectfuturepromotionsand/orraises.

Ifanyemployeeisabsentfromworkfortwo(2)consecutivedayswithoutinforminghis/herSupervisor,itwillbeassumedthattheemployeeresignedandemploymentwillbeterminatedasofthelastdayworkedbytheemployee.

UNEXCUSEDABSENCE

TheFollowingaredescriptionsofdisciplinaryactionsthatwillresultfromunexcusedabsence:

1stOffense-------------------------Verbalreprimandswithwrittennoticetoemployeefile 2ndOffense------------------------Writtennotice(copytoemployee’spersonnelfile) 3rdOffense-------------------------Termination

TARDINESS

Tardinessappliestoreturningfromlunchand/orbreakperiodsaswellasthebeginningoftheworkday.Thefollowingdescribesthedisciplinaryactionsthatwillresultfromtardiness.

1stOffense-----------------------Verbalreprimandswithwrittennoticetoemployeefile 2ndOffense----------------------Verbalreprimandswithwrittennoticetoemployeefile 3rdOffense-----------------------Suspensionforupto5workingdayswithoutpay 4thOffense-----------------------Suspensionfor10workingdayswithoutpayuptotermination

FAMILYEMERGENCY

IntheeventthePersonnelDepartmentorHomeOfficereceiveswordofanemergencyrelatedtoamemberofanemployee’sfamily,theemployeewillbenotifiedassoonaspossible.Shouldtheemployeebeatalocationawayfromhis/hernormalworkplace,arrangementswillbemadetocontacttheemployee,andifnecessary,arrangefortheemployeetoreturnhomeimmediately.

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SEVEREWEATHERCONDITIONS

Occasionallysevereweatheroremergencysituations(suchasfires,powerfailure,floodingorearthquakes)candisruptcompanyoperationsandcircumstancesmaynecessitateearlyclosing,lateopening,orcancellationofwork.Adeterminationonopeningorclosingwillbemadeatthediscretionofseniormanagement.Intheeventanemergencyoccursduringnon-workinghours,localradioand/ortelevisionstationswillbeaskedtobroadcastnotificationoftheclosingorlateopening.

Unlessotherwisenotified,employeesareexpectedtobeatworkontime.Ifanemployeearriveslate,leavesearly,orotherwisealtershis/hernormalworkschedulewithoutpriorapprovalfrommanagement,he/shewillbeexpectedtomakeupthistime.

PERFORMANCEEVALUATIONS

Performanceofemployeeswillbeevaluatedperiodicallybymanagement.Theevaluationconsistsofapersonalinterviewduringwhichanemployee’sstrengthsandweaknessesarediscussedandevaluatedandrecommendationsforimprovementsaremade.Theseinterviewsalsoidentifytheshortandlong-rangegoalsofemployeesanddeterminehowtheyinterrelatewiththecompany’spurposeandobjective.

Anyrecommendationsforpromotion,achangeofduties,oranincreaseinpaymustbeapprovedbythePersonnelDepartmentbeforeanychangetakeeffect.Aperformanceevaluationdoesnotnecessarilymeanachangeinpayorduties.

ADVANCEMENT

N.C.Sturgeon,LPbelievesinpromotingfromwithinthecompany.Wewantemployeestohavetheopportunityforpromotiontohigherpayingpositionswithinthecompany.Apromotionwillbebasedonsuchfactorsasqualityandquantityofwork,priorjobperformance,experience,educationalbackground,attendancerecord,safetyrecord,andtheabilitytoworkwellwithothers.

Wereservetherighttolookoutsidetheorganizationifwefeelthatanemployeewiththebestqualificationscannotbefoundwithintheorganization.

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PAYROLLDEDUCTIONSFROMGROSSPAY

Thecompanywillmakearrangementsforpayrolldeductionsforthefollowing:

• Federal,State,andLocalincometax• SocialSecuritytaxes• Pastduetaxes• Garnishments(includingchildsupport)orothercourtorderedwagedeductions• Employee’sportionofgroupinsurancepremiums• Employee’sportionofgroupinsurancepremiumsforcoverageoneligibledependents• Uniforms-ifapplicable• Loss,damage,ordestructionofcompanyproperty• 401(K)RetirementSavingsPlancontributions• Charitablecontributions

Anydeductions(otherthanstatutorydeductions)mustbeauthorizedbytheemployee.Nootherdeductionswillbemadeunlessspecificallyauthorizedinwritingbytheemployee.Alldeductionswillbeitemizedontheemployee’spaycheckstub.Questionsregardingpayrolldeductionsshouldbedirectedtohis/hersupervisor.

ERRORINPAY

Thecompanytakesprecautionstoensurethatemployeesarepaidcorrectly;however,ifanerrordoesoccur,theemployeeshouldnotifythePayrollClerk.Thecompanywillmakeeveryattempttoadjusttheerrornolaterthantheemployee’snextregularpayperiod.

GARNISHMENTOFEMPLOYEEWAGES

Garnishmentsarecourtordersrequiringanemployertowithholdspecifiedamountsfromanemployee’swagesforpaymentofadebtownedbytheemployeetoathirdparty.Statelawrequiresthecompanytohonorgarnishmentsofemployeewages(includingchildsupport)asacourtorotherlegaljudgmentmayinstruct.Thelawalsoprovidesforanadministrativefeetobechargedwhenagarnishmentoccurs.

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SEVERANCEPAY

ItisthepolicyofN.C.Sturgeon,LPtoprovideseverancepaytofull-timeemployeeswhoseemploymentisterminatedforreasonsthatarenotunfavorabletoN.C.Sturgeon,LPasdeterminedbythecompanyinitssolediscretion.

Specificallyexcludedfrombenefitsunderthisprovisionwouldbeanemployeewhowashiredasatemporaryemployeeforaspecifiedperiodoftimeoronewhowasofferedbutrefusedtoacceptanothersuitablepositionwiththecompany.

ADVANCESANDLOANS

Itisacknowledgedthatemergencysituationscanarisethatnecessitateemployeerequestsforpayadvancesorloans.Anyemployeerequestingsuchassistanceshouldsubmitawrittenrequesttohis/herSupervisorindicatingthenatureoftheemergencyinvolved.Therequestwillbeevaluatedandadeterminationwillbemadeastowhetheranadvanceorloancanbegranted.Noloanwillbegrantedifapreviousloanwasmadewithin12months.Interestwillbechargedonallloans.

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SECTION3 BENEFITS

Thecompanyprovidesawell-balancedprogramofbenefitsdesignedtomeettheneedsofemployeesandprovideprotectionfromfinancialhardship.Thesebenefitswillbereviewedperiodicallytoassurethattheykeeppacewithareapractice.

Theinformationcontainedinthishandbookregardingemployeebenefitsisnotacontracttoprovidethesebenefitstoanyemployee.Theeligibilityrequirementsofthesebenefitsaredescribedinthesummaryplan,documentsand/orbenefitbooklets.Full-timeemployeesareeligibleforbenefitsprovidedbythecompanyiftheymeetspecificrequirements.

VACATIONELGIBILITY(SALARY)

Thecompanyrecognizesthatemployeesneedascheduledtimeawayfromnormalworkdutiesfortheirpersonalwell-being.Thecompanygrantsannualvacationwithpaytosalariedemployeeswhomeettherequirements.Inadditiontothefollowingschedule,eachemployeeshallreceiveone(1)shoppingdayineitherNovemberorDecemberasadditionalvacationday.

LengthofContinuousService EligibleVacation1year………………………………………………………………………………………………….5days2years………………………………………………………………………………………………10days3years………………………………………………………………………………………………11days4years………………………………………………………………………………………………12days5years………………………………………………………………………………………………13days6years………………………………………………………………………………………………14days7-10years…………………………………………………………………………………………15days20yearsormore………………………………………………………………………………20days

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Thetermsofthebenefitplansdescribedaresubjecttochangeatanytimebytheinsurer(s)orN.C.Sturgeon,LP.

(HOURLY) Hourlyemployeesareentitledtoworkandbecompensatedforovertimeatarateof1.5time’sregularpay.Salariedemployeesdonothavethisprivilege.Therefore,full-timehourlyworkersareentitledtoatotaloffive(5)daysofpaidvacationafteronefullyearoffull-timeemployment.Yearsofserviceafterthefirstyeardonotincreasetheamountofvacationtimeforhourlyworkers.Otherthantheabove,allvacationbenefitsarethesameforhourlyworkersasforsalaryworkers.

VACATIONSCHEDULES

Vacationrequestsmustbemadeatleasttwoweekspriortothedesiredvacationtime.Vacationmaybetakenatanytimeduringtheyearaftereligibilitywiththefollowingprovisions:

• Employeesareexpectedtotaketheirpaidvacationtimeasameansofrestanddiversionforthemselvesandtheirfamilies.

• VacationmustbeapprovedinadvancebySupervisororForeman.• Unusedvacationtimemaynotbecarriedoverintothenextvacationyear.• Ifvacationsarenottakenbyanniversarydateeachyear,theyareforfeited.• Vacationtimemustbetakeninminimumincrementsofoneday.• Aholidayobservedbythecompanythatfallsduringthevacationperiodwouldbeconsideredas

apaidholidayandnotvacationtime.Thisdayofvacationmaybetakenatanothertimeasapproved.

• Anemployeemustworktheregularlyscheduledworkdaysbeforeandafterthepaidvacationperiodinordertobeeligibletoreceivevacationpay.

• Jobrequirementswillalwayshaveprecedenceovervacationschedule.• Lengthofservicewillbeconsideredintheeventaconflictofvacationschedulearises.

VACATIONPAY

Thefollowingprovisionsapplywithregardtovacationpay:

• Payforvacationtimewillbeattheemployee’sregularrateofpay.• Paidvacationtimewillnotbeconsideredastimeworkedforthepurposeofcomputing

overtime.• Payinlieuofunusedvacationwillnotbeallowed.

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OBSERVEDHOLIDAYS

Thecompanynormallyrecognizedthefollowingpaid(MeaningSalariedWorkers)holidays;however,thecompanymaydecidetoworkonaholidaydependinguponjobrequirements.

NewYear’sDayGoodFridayMemorialDay

IndependenceDayThanksgivingDay

DayafterThanksgivingDayChristmasDay

Thefollowingprovisionsapplywithregardtoholidaysobservedthecompany:

• ArecognizedholidaythatfallsonaSaturdaywillbeobservedontheproceedingFriday.ArecognizedholidaythatfallsonaSundaywillbeobservedonthefollowingMonday.

• WhenarecognizedholidayfallsonaSaturdayorSunday,itsobservancewillbeatmanagement’sdiscretion.

• Anemployeemustalsoworktheregularlyscheduledworkdaysbeforeandafteraholidaytobeeligibleforholidaypay.

• Paidholidaytimewillnotbeconsideredastimeworkedforthepurposeofcomputingovertime.

GROUPHEALTHINSURANCE

Grouphealthinsuranceisavailabletoallfull-timeemployees.Coveragewillbecomeeffectiveonthefirstofthemonthfollowing30daysofcontinuousemployment.

Atthepresenttime,thecompanypays50%towardsthecostofpremiumsorclaimsinthecaseofasemi-selfinsuredpolicyforcoverageonemployeesand0.0%towardsthecostofcoverageontheireligibledependents.Employeeswhowanttoincludecoverageontheireligibledependentsmaydosobyindicatingthischoiceonthegrouphealthinsuranceenrollmentform.

Ashealthcarecostscontinuetorise,thecompanywillattempttoprovidesuitablehealthcoveragetoitsemployees.However,whennecessary,thecompanyreservestherighttochangetheportionpaidbyemployeesforhealthinsurancepremiumsortodiscontinuethehealthinsuranceprogramforaraiseofequalvalue.

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Ifanemployeepreviouslycoveredbythecompany’sgrouphealthinsuranceplanislaidoffbecauseoftemporarylackofworkorillnessandisrehiredwithin(3)monthsofthelayoff,theemployeewillbecomeeligibletoparticipateinthecompany’sgrouphealthinsurancecarrier.

Theinsurancecarrierwillprovideeligibleemployeeswithadetailedsummaryoftheinsurancecoverageprovided.

CONTINUATIONOFGROUPHEALTHINSURANCE(COBRA)

N.C.Sturgeon,LPwillcomplywithfederalregulationsrelatingtotheConsolidatedOmnibusBudgetReconciliationActof1985(COBRA),whichisdesignedtoprovideemployeesandeligibledependentswiththeopportunitytocontinuehealthinsurancecoverageatgroupratesincertaininstancesinwhichcoveragewouldotherwisecease.Thepremiumforthiscoverageisthesoleresponsibilityoftheemployeeordependent.FurtherinformationmaybeobtainedfromPattiAres(orherSuccessor).

GROUPLIFEINSURANCE

Grouplifeinsuranceisavailabletoallfull-timeemployees.Theemployeepayspremiumsforgrouplifeinsurance.Thiscoveragebecomeseffectiveatthesametimeasthegrouphealthinsurance.Informationwillbeprovidedtogetherwiththegrouphealthinsurancebooklet.QuestionsregardinggrouplifeinsuranceshouldbedirectedtothePattiAres(orhersuccessor).

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401(K)RETIREMENTSAVINGSPLAN

Thisprogramenablesemployeestosaveforretirementonapre-taxbasis.Employeesmayelecttodeferfrom2%to12%oftheirpay.Employeesareeligibletoparticipateinthe401(K)RetirementSavingsPlanfollowingoneyearofcontinuousserviceandmayenterthePlanineitherJanuaryorJune.

Thecompanymatchesemployeecontributionsinthefirstyearofemployment50%upto$1,000.Aftercompletingoneyearofservice(atleast1900hoursworked)andbeginningonthefirstmonthfollowingtheiremploymentanniversarydate,employeesareeligibleformatchingcompanycontributions.

Employeecontributionsare100%vestedimmediately.Allmatchingcompanycontributionsaddedtoanemployee’s401(K)accountsarevestedaccordingtothefollowingschedule:

YearsofParticipationinthePlan VestingSchedule Lessthan0-1year……………………………………………………………………………0% Atleast2years………………………………………………………………………………20% Atleast3years………………………………………………………………………………40% Atleast4years………………………………………………………………………………60% Atleast5years………………………………………………………………………………80% 6ormoreyears…………………………………………………………………………….100%

EDUCATIONALASSISTANCE

Thecompanyencouragesallfull-timeemployeestobemoreeffectiveonthejobandtoincreasetheircareerpotentialwithinthecompanybyvoluntaryparticipationinjob-relatedclasses,continuingeducationprogramsand/orprofessionalseminarsoutsideregularworkinghours.Thecompanyfeelsemployeedevelopmentisadvantageoustoboththecompanyandtheemployee.

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Withpriorapprovalfrommanagement,thecompanywillreimburseapercentagetoeligibleemployeeswithoneormoreyearsofcontinuousserviceforthecostofjobrelatedclasses/seminars(upto$300.00inacalendaryear)uponsuccessfulcompletionaccordingtothefollowingschedule:

FinalGrade EligibleReimbursement A………………………………………………………………………..100% B…………………………………………………………………………80% C…………………………………………………………………………60% D…………………………………………………………………………40% F………………………………………………………………………….0% Ifanemployeeattendsajob-relatedclass/seminarthatrequiresanovernightstay,reimbursementforlodgingand/ormealexpenseswillbemadeaccordingtopreviouslyestablishedguidelines.ReceiptsalongwithaproperlycompletedExpenseReportarerequiredatthetimethereimbursementisrequested.

Anycosttoattendaseminarwillbepaiddirectlybythecompanybeforetheemployeeattends.Iftheemployeefailstoattendaseminar,thecosttoattendtheseminaroranycancellationfeeincurredwillbeattheexpenseoftheemployee.

Employeesrequestingeducationalassistantmustcomplywiththefollowingconditions:

• TheemployeemustsubmitawrittenrequestforeducationalassistancetothePresidentlistingthenameoftheschool,adescriptionofthecourse,tuitioncost,scheduledtime,andwhetherornottheemployeeisworkingtowardadegree.

• Theemployeemustbeemployedfulltimebythecompanyatthetimethereimbursementispaid.

• Uponsuccessfulcompletionofthecourse,theemployeemustsubmitallreceiptsforbooks,tuition,studentfees,etc.,alongwithacopyofthefinalgradereceivedtoPersonnelforreviewbeforereimbursementispaid.

• Reimbursementforeducationalassistancewillnotbemadeifthecourseisdropped,failed,orinanywaynotcompleted,oriftheemployeeceasestobeemployedbythecompanyforanyreason.

• Reimbursementwillnotbemadebythecompanyiftheemployeeisreceivingpaymentforcourse(s)grantorscholarshipfromothersources,forexample,theG.I.bill.

• FinalapprovalforalleducationalassistancewillbegivenbyChuckSturgeon(orhissuccessor).

• AnyspecialcasesorsituationsnotlistedabovewillbeatthediscretionofChuckSturgeon(orhissuccessor).

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JURY/WITNESSDUTY

Whenanemployeeisrequiredtoserveasajurororissubpoenaedtoserveasawitness(oncompanybusiness),timeoffuptofivedayswithpaywillbegrantedasfollows:

• TheemployeemustnotifythePersonnelDepartmentuponreceiptofasummonsorsubpoenasothatarrangementscanbemadetoaccommodatetheemployee’sabsence.

• Adocumentfromthecourt,whichshowsthetimespentbytheemployeeandtheamountpaidtotheemployee,mustbesubmittedtothePersonnelDepartment.

• Thecompanywillpaythedifferencebetweenwhatthecourtpaystheemployeeandtheemployee’sregularrateofpay.

• Verificationofanemployeebeingseatedonajury,beingdetainedinajurypool,orsubpoenaedasawitnessisrequired.

• Anemployeewhoissubpoenaedtoserve,asawitnessforreasonsnotrelatedtocompanybusinessmustuseearnedvacationtime.

• Ifthecourtdismissesthejuryearly,theemployeeisexpectedtoreturntoworkassoonaspossible(andcompletearegularworkdaycomprisedofcivictimeandtimeonthejob).

• Shouldtheemployee’sworkdutieswiththecompanybevitaltoitsoperation,thecompanymayaskthecourttoexcusetheemployeefromjuryduty.

VOTING

Thecompanyencouragesitsemployeestovoteineveryelectionanduptoonehourwithpaywillbeprovidedforvoting.EmployeesshouldrequesttimeofftovotefromPersonnelatleastfive(5)workingdayspriortotheElectionDay.Advancenoticeisrequiredsothatarrangementscanbemadetoalterthedistributionofworkifnecessary.

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FUNERALLEAVE

Intheeventofadeathinanemployee’simmediatefamily,theemployeewillbealloweduptofivedaysoffwithoutpayinordertoassistwitharrangementsortoattendthefuneralaccordingtothefollowingschedule.Specialconsiderationwillalsobegivenintheeventofadeathofanyotherpersonwhoseassociationwiththeemployeewassimilarasclosefamilyfriend,afosterchild,orsignificantother.

FamilyMember TimeOffAllowed Spouse………………………………………………………………………………………….5days Parent/Stepparent……………………………………………………………………….5days Child/Stepchild……………………………………………………………………………..5days Brother/Stepbrother/Sister/Stepsister…………………………………………5days Grandparent…………………………………………………………………………………2days Grandchild…………………………………………………………………………………….2days Mother-in-Law/Father-in-Law………………………………………………………1day Son-in-Law/Daughter-in-Law………………………………………………………..1day Brother-in-Law/Sister-in-Law………………………………………………………..1day Ifadditionaltimeisnecessary,vacationtimemaybeusedprovidedtheemployeeiseligibleforvacationtime.

EmployeeswhomusttaketimeoffduetothedeathofanimmediatefamilymembershouldnotifythePersonnelDepartmentimmediately.Ifpropernotificationisnotgiventheemployeewillnotbepaidforthefuneralleave.

Paymentwillnotbemadeunderthispolicywhenadeathoccursduringanemployee’svacation,leaveofabsence,andlayofforatatimewhenanemployeereceivesholidaypay.

Thecompanyreservestherighttorequestsubstantiationofanydeathinanemployee’simmediatefamilyand/orconfirmationofanemployee’sattendanceatafuneral.

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SICKLEAVE

Thecompanyallowsemployeesfivedaysunpaidsickleaveperyear.Thefollowingprovisionsapply:

• Uponcompletionofoneyearofcontinuousemployment,eligibleemployeescanrequestuseofsickleave.

• Sickleavebenefitsarecalculatedonthebasisofabenefityear(thetwelve(12)monthperiodthatbeginswhentheemployeestartstoearnsickleavebenefits).

• Eligibleemployeeswillaccruesickleaveattherateoffive(5)daysperyear.• Sickleavewillbecalculatedbasedontheemployee’sbaserateofpayatthetimeofthe

absenceandwillnotincludeanyspecialformsofcompensationsuchasincentives,commissions,bonuses,orshiftdifferentials.

• Sickleavedaysmaynotbeallowedtoaccumulate.• Sickleavemayonlybeusedforanabsenceduetotheeligibleemployee’sownillnessor

injury.• Sickleavebenefitsareintendedtoprovideincomeintheeventofillnessorinjuryand

maynotbeusedforanyotherabsence.• Paidsicktimewillnotbeconsideredastimeworkedforthepurposeofcomputing

overtime.• Unusedsickleavewillnotbepaidtoemployeeswhiletheyareemployedorupon

terminationofemployment.• Theemployeemustcontacthis/herSupervisorwhenhe/shecannotreporttowork

beforethestartofhis/herscheduledworkday.Untilmedicalcertificationisreceived,thisshouldbedoneeverydaypriortotheemployee’snormalstarttimesothatnecessaryarrangementsmaybemadetoredistributework.

• Thecompanyreservestherighttorequestanexplanatorynotefromtheemployee’sphysicianshouldanabsenceextendbeyondthree(3)consecutiveworkingdaysduetoanib-job-relatedillnessorinjury.

MEDICALABSENCES

Thecompanyreservestherighttorequestanexplanatorynotefromtheemployee’sphysicianshouldanabsenceextendsbeyondthree(30)consecutiveworkingdaysduetoanon-job-relatedillnessorinjury.

Whenanemployeeisabsentfromworkformorethanthree(3)consecutiveworkingdays,managementwillreviewthesituationtodetermineifthereisaneedtofillthepositionintheindividualsabsence.

Absenceduetopregnancy,childbirth,andrelatedmedicalconditionswillbetreatedthesameasanyothernon-job-relatedillnessordisability.

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Medicalabsencesforperiodsinexcessofweeks(threeworkingdays)areatthediscretionofmanagementandmaybedenied,approvedonconditionswhicharenecessarytothecompany’sinterest.

Thestatusofanemployee’spositionandbenefitsduringandattheconclusionofanysuchextendedmedicalabsencewillbedeterminedbymanagementandcommunicatedtotheemployeebeforeoratthetimetheabsenceisgranted.

MATERNITYLEAVE

ItisthepolicyofN.C.Sturgeon,LPtoallowmaternityleave-without-payuptotwoweekswiththefollowingprovisions:

• Thedeterminationofthebeginningandclosingdatesoftheemployee’sabsencewillbeajointdecisionbetweentheemployees;theemployee’sattendingphysicianandtheemployee’ssupervisor.

• Beforecommencingmaternityleave-without-pay,theemployeemustuseallallowablesickleaveandallearnedannualleave.

• Theemployeemayreturntoworkwithinaspecifiedperiodoftime(upto21days)aftercommencementofmaternityleave-without-payprovidingthattheemployeehasmedicalapproval.Thisperiodoftimecanbeextendeduponmedicalrecommendationifapprovedbythecompanyandatitsdiscretion.

• Iftheemployeereturnstoworkwithinthespecifiedtimeperiodorassoonasmedicallyapprovedthereafter,theemployeewillbereinstatedtothepositionheldpriortotheleaveorapositionofequivalentstatusandpay.

• Amedicalreleasefromtheemployee’sattendingphysicianisrequireduponreturntowork.

• Iftheemployeedoesnotreturntoworkwithinthespecifiednumberofdaysorassoonasmedicallyapprovedthereafter,thepoliciesgoverningleaveofabsencewithoutpaywillapply.

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FAMILY/MEDICALLEAVE

Ingeneralanemployeewhohascompletedatleasttwelve(12)monthsofcontinuousservicewithN.C.Sturgeon,LPandperformedatleast1,250hoursofserviceintheprior12monthperiodiseligibletoreceiveanunpaidfamily/medicalleaveinaccordancewiththeFamilyandMedicalLeaveActof1993(FMLA).Thefollowingprovisionsapplywithregardtothefamily/medicalleavepolicyforemployeesofN.C.Sturgeon,LP:

• Family/medicalleavemaybetakenonlyifitismadenecessaryduetooneofthefollowingreasons.

1. Withintwelve(12)monthsofthebirthofachildoftheemployeeinordertotakecareofthechild.

2. Withintwelve(12)monthsoftheplacementofachildwiththeemployeeinconnectionwithadoptionorfostercareinordertocareforthechild.

3. Aserioushealthconditionoftheemployee’schild,parent,orspouse.4. Aserioushealthconditionoftheemployeewhichpreventshim/herfromperforming

theessentialfunctionsofhis/herjob.• Innoinstancedoesthefederallawrequirethecompanytograntmorethanatotaloftwelve

(12)weeksofunpaidleaveinanyconsecutivetwelve(12)monthperiod.• Ifanyemployeeandhis/herspousebothworkforN.C.Sturgeon,LP,theywouldbeeligiblefora

singletwelve(12)weekperiodwhichtheycansplitbetweenthem.However,iftheneedforleaveisfortheirownserioushealthconditionorthatoftheirspouseorchild,eachwouldbeeligibleforatotaloftwelve(12)weeks.

• Anyleavegrantedtoaneligibleemployeeunderthislawbecauseofserioushealthconditionofafamilymembermaybetakenconsecutivelyorintermittentlydependingonthelegitimateneedsoftheemployee.

• Theemployeemustmakeareasonableefforttoschedulesuchleavesoasnottodisruptthecompany’sbusinessoperations.

• Anyleavegrantedduetothebirthoradoptionofachildmustbetakenconsecutivelyunlessotherwiseagreedtobythecompanyandmustbecompletedwithinon(1)yearoftheadoptionorbirth.

• Duringtheleave,theemployerwillmaintaintheemployee’shealthcarecoverageunderthesameconditionsascoveragewouldbeprovidediftheemployeewerecontinuouslyemployedduringtheentireleaveperiod.Boththeemployerandtheemployeewillberesponsibleforpaymentoftheirshareofthepremiumduringtheleaveperiod.

• Eligibleemployeesmustprovidereasonablepriornoticetothecompanywhenrequestingaleaveofabsenceunderthelaw.Thecompanymayrequireanemployeetoprovidecertificationissuedbyalicensedhealthcareproviderinordertoensurethattheemployeemeetstheeligibilityrequirements.

• ThecompanyisnotrequiredtocomplywiththeFMLAtotheextentanemployeeisamongthehighestpaid10%ofemployeesofthecompanywithina75mileradiusofanyworksiteifthecompanycanshowthatgrantingtheleavewouldcausesubstantialandgrievouseconomicinjurytoitsoperations.

Formoreinformationaboutfamily/medicalleavecontactthePersonnelDepartment.

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MILITARYLEAVE

ItiscompanypolicytograntaleaveofabsencewithoutpaytoemployeeswhoparticipateinU.S.ArmedForcesReserveorNationalGuardtrainingprogramsinaccordancewiththeprovisionsoftheUniversalMilitaryTrainingandServiceAct.

SOCIALSECURITY

SocialSecurityprovidesbenefitsforemployeesandtheirfamiliesasspecifiedbylawintheeventofretirement,hospitalizationafterage65(Medicare),totalandpermanentdisabilitybeforeage65,anddeathatanytime.

ThecompanymatchestheamountofSocialSecuritytaxespaidbyeachemployee.ContactthelocalSocialSecurityOfficefordetails.

WORKERS’COMPENSATION

EmployeesofN.C.Sturgeon,LParecoveredbyWorkers’Compensationinsurancethatispurchasedbythecompanyinthestateinwhichitoperates.Thisinsuranceprovidescompensationtoanemployeeforlostwagescausedbyillness,accidentalinjury,ordeathsufferedinthecourseoforasaresultofhis/heremploymentwiththecompanyinaccordancewiththelawsofthestateofTexas.

EligibilityEligibilityforbenefitsunderWorkers’Compensationinsuranceisautomaticandiseffectiveondateofhire.ReportingAreportmustbefiledwithin4hoursoftheonsetofillnessorinjury.BenefitsWorkers’Compensationbenefitsprovideweeklypaymentsbaseduponastatutorilyspecifiedamountoftheemployee’sregularearningsaswellaspaymentsformedicalandhospitalexpensesarisingoutofanoccupationalillnessorinjury.

UNEMPLOYMENTCOMPENSATION

UnemploymentcompensationisanotherformofinsurancethatispaidforentirelybyN.C.Sturgeon,LP.Unemploymentcompensationhelpsemployeesmeetalossofincomeresultingfromunemploymentbeyondtheircontrolbypayingcertainbenefitswhiletheyareoutofwork.Thisformofprotectionisinadditiontogroupinsurance,SocialSecurity,andWorkers’Compensation.

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SECTION4 TRANSFEROFEMPLOYEESSEPARATIONFROMEMPLOYMENTANDLEAVEOFABSENCE

TRANSFEROFEMPLOYEES

Transferofemployeesfromonedepartmenttoanotherorfromonelocationtoanotherforcompany’sconveniencemaybemadetomeetcompanyrequirements.ArequestfortransfershouldbemadeinwritingandsubmittedtothePersonnelDepartmentforconsideration.Atransfermaybemadeifmanagementdeterminesitisinthebestinterestofthecompanyandtheemployee.

SEPARATIONFROMEMPLOYMENT

Anemployeemaybeseparatedfromemploymentvoluntarilyorinvoluntarilybyretirement,voluntaryresignation,lackofwork,ortermination.Usually,beforeanemployeeisterminated,he/shewillbetoldthereason(s)andwillbecounseledbyhis/hersupervisor.However,ifanymisconductwarrantingdisciplinesevereenough,theSupervisorhastheauthoritytodischargetheemployeeimmediately.

TheSupervisorwilladvisethePersonnelDepartmentimmediatelyofthedateandthereasonforterminatinganemployee.

Allcompanypropertyintheemployee’spossessionmustbereturnedtothePersonnelDepartmentuponseparationfromemploymentbeforethefinalpaycheckisreleased.

VOLUNTARYRESIGNATION

Anyemployeewhovoluntarilyresignshis/herpositionwithN.C.Sturgeon,LPisexpectedtoprovidethecompanywithadvancewrittennoticeofatleasttwoweeks.

Iftheemployeedoesnotprovideadvancenoticeasrequested,theemployeewillnotbeeligibleforrehire.

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EXITINTERVIEW Anemployeeplanningtoleavethecompanymaybeaskedtoparticipateinanexitinterview.Inadditiontodiscussinghis/herdecisiontoleavethecompanywithhis/herimmediatesupervisor,amemberofthePersonnelDepartmentwillmeetwiththeemployeepriortothetermination.Discussionsconcerningthereasonsforleavingwillassistthecompanyinevaluatingtheeffectivenessofitspersonnelpoliciesandpractices.Atthetimeoftheexitinterviewmattersrelatingtofinalpayandanyotherpersonalconsiderationswillbearranged.

PAYATTIMEOFSEPARATIONFROMEMPLOYMENT Thecompanywilldetermineiftheterminatingemployeehasanyoutstandingdebtowedtothecompanyandwhethertheindividualhasinhis/herpossessionanycompanycreditcards,uniforms,tools,keys,safetyequipmentmanuals,vehicles,IDcards/badges,orothercompanyproperty.

Uponcompletionofafullaccountingoftheemployee’sandthecompany’saccounts(asdeterminedbythecompany),afinalpaycheckfortimeworked(lessdeductions)willbeissuedtotheemployeeonthenextregularpaydayinaccordancewithapplicablefederalandstatelaw.

Thecompanywillissueacheckdesignatedasthefinalpaymentforallservicesrendered.Thefinalcheckwillnotreflectanytimenotactuallyworkedexceptforanemployeeseparatedfromemploymentwiththecompanyforanyreasonbeforehe/shehastakenpartorallofhis/herearnedvacation.Theemployeewillreceivepayforhis/herearned(unused)vacationtimeatthetimeofseparationfromemployment.

Uponresignationortermination,theemployeeshouldcontactthePersonnelDepartmentforpossibleconversionofgroupinsuranceandtoaddressanyfinancialissues.

Anyemployeeterminatingemploymentisexpectedtoreturnanypropertyinhis/herpossession.

LEAVEOFABSENCE Anemployeewithatleast12monthsofservicemayaskforaleaveofabsencewithoutpayfromthecompany;however,noemployeeisguaranteedaleaveofabsence.

Anyrequestforaleaveofabsencemustbemadeinwritingstatingadefinitiveperiodoftimeandmustbeapproved(inadvance)byChuckSturgeon(orhissuccessor).Ifthetimeperiodrequestedislongerthanthepositioncanbeheldopen,thentheemployeewillbeadvisedatthattimethejobmaynotbeavailableupontheemployee’sreturntowork.

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Managementmayrecommendeitherapprovalordenialofaleaveofabsencerequestbaseduponbusinessconsiderationsand/orcircumstancesoftherequest,(e.g.staffingneeds,employeedisability,militaryobligations,familycrisis,unusualcircumstances,etc.).

Duetolackofwork,thecompanymayrequireanemployeetotakeanunpaidleaveofabsence.Thelengthofthecompany-initiatedleaveofabsencemayvary.

Duringanyapprovedleaveofabsencethefollowingprovisionsapply:

• Theemployeeisresponsibleforthepaymentofallinsurancepremiumsforhis/herindividualcoverageanddependenthealthinsurancecoverage(ifapplicable).ThismoneyshouldbepaidtoN.C.Sturgeon,LPbythefirstdayofeachmonththattheemployeeisonanapprovedleaveofabsence.

• Theemployeewillretainhis/heroriginalemploymentdate(continuousservicedate)showingnointerruptioninservice.

• Theemployeewillretainhis/hermembershipinthecompany’s401(K)RetirementSavingsPlanuptotheamountoftimeallowedintheplan.

• Creditforpaidvacationleavecannotbeaccruedduringanapprovedleaveofabsence.• Ifanemployeeacceptsotheremployment,allofhis/herbenefitswiththecompanywill

beterminated.• Anyleaveofabsenceiswithoutpay.

REDUCTIONOFWORKFORCE

Intheeventthatareductioninthecompany’sworkforcebecomesnecessary,employeesoverandabovethenumberdeterminedbythecompanyasneededtoperformtheavailableworkwillbeterminated.Indeterminingthoseemployeestoberetained,aconsiderationwillbegiventothequalityofeachemployee’spastperformance,theneedforthepositionheldbytheemployeeand,withallotherfactorsbeingequal,thelengthofserviceofeachemployee.

Iffeasible,butnotasavestedright,employeessubjecttoterminationwillbegivenanoticepriortotheanticipatedtermination.Uponsuchtermination,allaccrued(unused)vacationleavewillbepaidinfullandanyinsurancebenefitsrequiredtobeofferedwillbebroughttotheemployee’sattention.

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SECTION5WORKPOLICIESANDREGULATIONS

CAREOFEQUIPMENTANDFACILITIES

Employeesshouldbeconcernedwiththecareandsafeuseofcompany-ownedequipmentandfacilities.Employeesareexpectedtofollowalloperatinginstructions,safetystandardsandguidelines.Goodhousekeepingisexpectedofeveryemployee.

Ifanyequipment,machine,tools,vehicles,etc.appeartobedamaged,defective,orinneedofrepair,notifyyourSupervisororDwayneAdcock(orhissuccessor).Promptreportingofdamages,defects,andtheneedforrepairscouldpreventdeteriorationofequipmentandpossibleinjurytoemployeesorothers.

Unsafe,destructive,careless,negligent,orimproperuseoroperationofequipmentmayresultindisciplinaryactionuptoandincludingterminationofemployment.

PERSONALAPPEARANCE/CLOTHING

Personalappearance,properhygieneandappropriateattireareimportanttoourworkpractices.Ourcustomersgaugethequalityofourcompanybytheattentionweshowtopersonalappearanceandattire.

Eachemployeepersonallyrepresentsthecompanyandisrequiredtodressinanappropriatemanner.EveryemployeeofN.C.Sturgeon,LPcontributestothecompany’soverallpublicimageduringworkhours.Appropriateattireenhancesanemployee’seffectivenessinprovidingsuperiorservice.

Employeesareexpectedtoreporttoworkwearingcleanclothing.Aneat,well-groomedappearanceisimportanttotheemployee,theirfellowworkersandtoourcustomers.

Thecompanydoesnotobjecttoemployeeshavingreasonablylonghairifitisgroomed.Nor,doesitobjecttomustachesand/orbeardsiftheyarekepttrimmedanddonothindertheemployee’sperformanceorsafetyonthejob.

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SMOKINGPOLICY

N.C.Sturgeon,LPisdedicatedtoprovidingahealthy,comfortable,productiveworkenvironmentforouremployeesaswellashealthy,comfortable,environmentforourcustomers.Thisgoalcanonlybeachievedthroughongoingeffortstoprotectnon-smokersandtohelpemployeesadjusttorestrictionsonsmoking.Therefore,smokingisprohibitedthroughoutcompanyfacilitiesexceptindesignatedsmokingareas.

DESIGNATEDSMOKINGAREAS:• OutsideLimitofContractsatJobsite• OutsideBuildingAreaatOffice

Thesuccessofthispolicywilldependuponthethoughtfulness,considerationandcooperationofsmokersandnon-smokers.Allemployeesshareintheresponsibilityofadheringtoandenforcingthispolicy.Anyconflictshouldbebroughttotheattentionoftheappropriatesupervisorypersonnel.

PERSONALBELONGINGS

N.C.Sturgeon,LPrecognizesanemployee’sdesiretodisplaymementospertainingtohis/herfamilyorotherpersonalitems.WhileN.C.Sturgeon,LPcantakenoresponsibilityforthesafekeepingoftheseitems,itwelcomesitsemployeestopersonalizetheirworkareasforaddedcomfortorpleasantness.However,severalguidelinesmustbeobserved.Theyareasfollows:

• SafetyComesFirst-Noobjectcaninterferewithjobsafetyasviewedbycompanymanagement.

• Nothingcanbedisplayedthat(intheopinionofmanagement)isderogatorytoanypersonorsystemofbeliefs.

• Objectsthat(intheopinionofmanagement)areinappropriateorhinderworkeffortswillnotbeallowedandmustberemoveduponrequest.

SAFETYEQUIPMENT

Employeeswillbeprovidedwithsafetyequipmentifitisarequirementforaparticularjob.Thisequipmentwillbesignedforbytheemployeeandreplacedattheemployee’sexpenseiftheequipmentislost,damaged,orstolen.Replacementwillbeprovidediftheequipmentisshowntobedefective.

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PERSONALTOOLS

Employeeswhoworkincertaintradepositionsarerequiredtoprovidetheirowntoolstoperformjobassignments.TheSupervisorwilladviseemployeesofthetoolsrequiredandwillmakesurethateachemployeeobtainstherequiredtools.Thecompanydiscouragesemployeesfromlendingorborrowingtools.

COMPANYTOOLSANDEQUIPMENT

Thecompanywillfurnishallnecessarytoolsandequipmenttocompletejobassignments.EachemployeeisremindedthatallitemspurchasedbythecompanyarethepropertyofN.C.Sturgeon,LPandrepresentsaveryvaluableassetofthecompany.Itistheresponsibilityoftheemployeetowhomtoolsandequipmentareassignedtomaintainandsafeguardtheseassetsasiftheywerehis/herpersonalproperty.

Aninventoryoftoolsandequipmentwillbemadeperiodically.Ifitisdeterminedthatanemployeeisnegligentintheproperstorageoftools,material,orsuppliesortheyaremisplacedorstolen,theemployeewillbeaskedtoreplacesameatfairmarketvalueorthecostoftheitemwillbedeductedfromtheemployee’spaycheck.

Whenleavingaworkarea,itisrequiredthatalltoolsbeplacedbackindesignatedstorageareasorremovedfromtheworkareaandsecuredinlockedstoragewhereavailable.

ENERGYPRESERVATIONANDWASTEPREVENTION

Wasteofenergyandmaterialsiscostlytothecompanyandultimatelyresultsinlosseswhichmustbepaidforbyothercostreductionactions.Employeesareexpectedto:

• Conserveenergyateveryopportunitybykeepingthermostatsinmoderateranges;i.e.,73degreesinsummerand73degreesinwinter.

• Changefiltersregularly.• Drivewithinpostedspeedlimits.• Participateinthecompany’srecyclingprogram.

SOLICITATIONAND/ORDISTRIBUTION

Topreventdisruptionofbusinessactivities,tominimizedistractionsforallemployees,andtopreservecompanysecurity,solicitationand/ordistributionofliterature,materials,goods,contestpromotions,requestsfordonations,oranyothersolicitationand/ordistributionisprohibitedduringworkingtimeorinworkareas.

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SECURITY

Alldoors,files,desks,gates,andanyotherequipmentwithlocksmustbekeptlockedsecurelywhennotindirectuseandattheendofeachday.Locksshouldbecheckedregularly.Companyvehiclesshouldbekeptlockedatalltimeswhennotinuse.LostkeysmustbereportedtotheOfficeimmediately.AnyconcernsaboutsecurityshouldbedirectedtothePersonnelDepartment.

BULLETINBOARD

Thecompanymaintainsabulletinboardtokeepemployeesinformedofcurrentitemsofgeneralinterest.Employeesshouldcheckthebulletinboardregularly.Postingand/orremovalofnoticesmusthavetheapprovalofJobSuperintendent.

OUTSIDEEMPLOYMENT

N.C.Sturgeon,LPmakeseveryefforttokeepitsemployeesasfullyemployedaspossibleandatagoodrateofpay.Whenanemployeeisonthejob,thismeansthat100%ofhis/hereffortisrequired.Ifanemployeechoosestoworkoutsideofhis/herjobandtheoutsideemploymentcompeteswithwhatisexpectedofhim/herasanemployeeofN.C.Sturgeon,LP,andopportunitiesforpromotionandadvancementwithN.C.Sturgeon,LPmaybelimitedbyhis/herdecision.

Ifmanagementfeelsthatoutsideemploymentpreventsanemployeefromfulfillinghis/herobligationstothecompany,theemployeewillbeaskedtoresignfromN.C.Sturgeon,LPortoleavehis/heroutsideemployment.

Allmanagementandsupervisorypersonnelareexpectedtoenforcethispolicyand,byexample,refrainfromconflictingoutsideemployment.

USINGTHETELEPHONE

Eachtimeanemployeemakesorreceivesatelephonecallhe/sherepresentsN.C.Sturgeon,LP.ThemannerinwhichacallishandleddetermineshowN.C.Sturgeon,LPisjudgedbyourclientsandvendors.WehavealimitednumberoftelephonelinesatthecompanyanditisessentialthatwekeepthoselinesopenforcallpertainingtoN.C.Sturgeon,LPbusiness.

PERSONALMAILATTHEWORKPLACE

Themailsystemisreservedforbusinesspurposesonly.Employeeswillnotbeallowedtosendorreceivepersonalmailattheworkplace.

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TWO-WAYRADIOS

Employeesmustuseproperprocedureandappropriatelanguagewhenusingcompanytwo-wayradios.

ALCOHOLANDDRUGS

Consumptionof,possessionof,orbeingundertheinfluenceofalcoholicbeveragesorillegaldrugsoncompanyproperty,intheoffice,orinanyvehicleusedforcompanybusinessisstrictlyprohibited.Anyemployeewhoviolatesthispolicywillbesubjecttodisciplinaryactionincludingimmediateterminationofemployment.Anyemployeewhoreportsforworkorwhoisatworkissubjecttochemicalscreeningand/orblood/alcoholtestingtodeterminethepresenceofunauthorizeddrugsoralcoholinthebody.

ALCOHOL

Consumptionof,possessionof,orbeingundertheinfluenceofalcoholicbeveragesoncompanyproperty,intheofficeorinanyvehicleusedforcompanybusinessisstrictlyprohibited.Anyemployeewhoviolatesthispolicywillbesubjecttodisciplinaryactionincludingimmediateterminationofemployment.Anyemployeewhoreportsforworkorwhoisatworkissubjecttoblood/alcoholtestingtodeterminethepresenceofalcoholinthebody.

DRUGS

Thecompanyhastoplaceasubstanceabusepolicy,whichincorporatestheprovisionsoftheDrug-FreeWorkplaceActof1988.AllemployeesmustabidebyallthetermsandconditionsofthispolicywhileemployedbyN.C.Sturgeon,LP.Inthisregard,employeesarerequiredtoreadthepolicyandsignastatementacknowledgingtheirunderstandingofthepolicyandintenttofollowthepolicy.Anyemployeewhoreportsforworkorwhoisatworkissubjecttochemicalscreeningand/orblood/alcoholtestingtodeterminethepresenceofunauthorizeddrugsintheirbody.

• TheDrug-FreeWorkplacePolicyisfullydescribedinSection6.• TheDrug-FreeWorkplacePolicyisfullydescribedinaseparatehandbookprovidedtoeach

employee.

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POLICYONHARASSMENT

Consistentwithourpolicyofequalemploymentopportunity,harassmentintheworkplacebasedonaperson’srace,sex,religion,nationalorigin,age,height,weight,maritalstatus,ordisabilitywillnotbetoleratedconcerningemployeesorapplicantsforemployment.

Oneaspectofourpolicyrequiringsomeclarificationistheprohibitionofanyformofsexualharassmentintheworkplace.Thefollowingdescribesthetypeofconductthatisprohibitedaswellasthecomplaintprovisionstoinvestigateandremedyanyproblemsthatmayarise.

Sexualharassmentincludesunwelcomesexualadvances,requestsforsexualfavors,andotherverbal,visualorphysicalconductofasexualnature.Noemployeeshallthreatenorinsinuate,eitherexplicitlyorimplicitly,thatanotheremployee’sorapplicant’srefusaltosubmittosexualadvanceswilladverselyaffectthatperson’semployment,workstatusevaluation,wages,advancement,assignedduties,oranyotherconditionofemploymentorcareerdevelopment.Similarly,noemployeeshallpromise,implyorgrantanypreferentialtreatmentinconnectionwithanotheremployeeorapplicantengaginginsexualconduct.

SexualHarassmentalsoincludesunwelcomesexualflirtations,advancesorpropositions,verbalabuseofasexualnature,subtlepressureorrequestsforsexualactivities,unnecessarytouchingofanindividual,graphicorverbalcommentariesaboutanindividual’sbody,sexuallydegradingwordsusedtodescribeanindividual,adisplayofsexuallysuggestiveobjectsorpicturesintheworkplace,sexuallyexplicitoroffensivejokes,orphysicalassault.

Anyemployeewhofeelsthathe/sheisavictimofsexualharassment,includingbutnotlimitedto,anyoftheconductlistedpreviously,byanysupervisor,managementofficial,otheremployee,customer,clientoranyotherpersoninconnectionwithemploymentatN.C.Sturgeon,LPshouldbringthemattertotheimmediateattentionoftheirSupervisororChuckSturgeon(orhissuccessor).

Ifthatwouldprovetobeuncomfortable,anemployeemaydirectlycontactanyothermemberofmanagement.Everyeffortwillbemadetopromptlyinvestigateallallegationsofharassmentinasconfidentialamanneraspossibleandappropriatecorrectiveactiontakenifwarranted.

Afteraninvestigation,anyemployeedeterminedtohaveengagedinsexualharassmentinviolationofthispolicywillbesubjecttoappropriatedisciplinaryactionuptoandincludingterminationofemployment.

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SECTION6CONFLICTOFINTEREST

Employeesshallavoidoutsideemployment,activities,investments,andotherintereststhatinvolveobligationswhichmaycompetewithorbeinconflictwiththeinterestofthecompany.AconflictofinterestcanariseindealingswithanyonethatN.C.Sturgeon,LPtransactsbusiness;i.e.,customers,clients,owners,buyers,suppliers,banks,insurancecompanies,andpeopleinotherorganizationswithwhomwecontactandmakearrangements.

Conflictsofinterestshouldbeavoidedandmayincludethefollowingexamples:

• Workingforanygroupmentionedaboveforpersonalgain.• Engaginginapart-timeactivityforprofitorgaininanyfieldinwhichthe

companyisengaged.• Borrowingfrom,orlendingmoneyto,individualsrepresentingorganizations

withwhichbusinessdealingsareconducted.PERSONALCONDUCT

Thecompanyexpectsthatallofitsemployeeswillconductthemselveswiththeprideandrespectassociatedwiththeirpositions,fellowemployees,customersandthecompany.Employeesshouldalwaysusegoodjudgmentanddiscretionincarryingoutthecompany’sbusiness.ThehigheststandardsofethicalconductshouldalwaysbeusedbyemployeesofN.C.Sturgeon,LP.

Improperconductbyandbetweenemployeesand/orbyandbetweenemployeesandbusinessassociatesonthecompany’spremisesoradverselyaffectingcompanyworkwillnotbetolerated.Anyemployeedemonstratingimproperconductwillbesubjecttodisciplinaryactionincludingterminationofemployment.

CONFIDENTIALITY

N.C.Sturgeon,LPisengagedinabusiness,whichrequiresthatastrictcodeofconfidentialityofinformationbemaintained.Noemployeewillstoreinformationoutsideofthecompany(eitherinwrittenorelectronicform)aboutanymatterpertainingtotheconductofthecompany’sbusinesswhichmaycompromiseacustomerorthecompanytooutsiders.Anyemployeewhocompromisesinformationmaybesubjecttoterminationofemployment.

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BRIBES,KICK-BACKSANDOTHERILLEGALPAYMENTS

Bribes,kick-backsandotherillegalpaymentstoorfromanyindividualwithwhichweconductbusiness(inanyformandforanypurpose)areprohibited.

Certaintypesofrebatestothecompanyfromsuppliers(butnottoorfromanindividualemployee)arelegitimatetocorrectcommercialinequityifdonewithingovernmenttraderegulations.

ACCEPTINGGIFTS

Normallyagifttoanindividualfromanoutsidesourceisconsideredthepropertyofthecompanyunlessmanagementmakesanexception.ItisthepolicyofN.C.Sturgeon,LPthatnoemployeeshallreceiveanygift,excessiveorunusualentertainment,loan,orotherfavor(valuedinexcessof$25.00)fromanyoutsidesource(includingcustomersandsuppliers)withoutapprovalfrommanagement.Anyemployeewhofailstoabidebythispolicywillbesubjecttodisciplinaryactionincludingimmediateterminationofemployment.

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SECTION7 RULESTOHELPUSALL

ItisthepolicyofN.C.Sturgeon,LPtoexpectallemployeestoabidebycertainworkrulesofgeneralconductandperformanceatalltimes.Theregulationsgoverningemployeeconductandresponsibilitieshavebeenestablishedinthebestinterestofthecompany,itsemployees,anditsclientsandvendors.

Accordingly,aviolationoftheseregulationsconstitutesmisconductonthepartoftheemployeeandappropriatedisciplinaryactionwillbeinitiated.Theserulesareguidelinesonlyandarenotall-inclusive.Disciplinaryactionmayinclude,butisnotlimitedto,verbalreprimand,writtennotice,suspensionfromworkwithoutpay,andimmediateterminationofemployment.Managementreservestherighttoterminateordisciplineanyemployeeasthecompany,initsdiscretion,considersnecessaryinindividualcircumstances.

Intheeventanemployeeissuspendedfromworkfordisciplinaryreasons,benefitswillnotaccruenorwillbenefitsberecoverableduringthesuspensionperiod.

EXAMPLESOFMISCONDUCT

Thefollowingareonlyexamplesofmisconductforwhichanemployeemaybesubjecttodisciplineandtheseexamplesdonotconstituteacompletelistofthecircumstancesforwhichdisciplinewillbewarranted.

• Falsificationofanyrecordsorreportspertainingtoabsencefromwork,claimspertainingtoinjuriesoccurringoncompanypremises,claimsforanybenefitsprovidedbythecompany,communicationsorrecordsincludingpersonnelandproductionrecords.

• Disclosingconfidentialinformationtooutsiders.• Gamblingorrightingonjobsitesorcompanyproperty.• Unethicalconductorseriousconflictsofinterest.• Concealingdefectivework.• Stealingthecompany’sproperty,acustomer’spropertyorthepropertyofany

employee;hiding,concealingormisappropriationofcompanypropertyorthepropertyofotheremployeesorcustomers;sabotageorwillfuldamagetocompanyproperty,orthepropertyofotheremployeesorcustomers.

• Unauthorizeduseorsaleofanycompany-ownedproperty,salvagematerialorequipment.

• Reportingtoworkundertheinfluenceofalcoholorillegaldrugs;possession,saleoruseofmarijuanaorillegaldrugsorchemicalsorconsumptionofalcoholwhileworkingonjobsites,intheofficeorincompanyvehicles.

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• Grossnegligenceorwillfulactsintheperformanceofdutiesresultingindamagetocompanyproperty.

• Grossinsubordination-awillfulanddeliberaterefusaltofollowreasonableordersbyamemberofmanagement.

• Willfullymisusingcom9panyproperty.• Violationofthecompany’sequalopportunityorsexualharassmentpolicies.• Serioussafetyviolationresultingininjury.• Notfollowingareasonableorderorfailuretoperformworkassignedortocomplywith

workandsafetyrules.• Violationofcompanypolicies.• Misuseofcompanyequipment.• Gainingunauthorizedaccesstocompanyrecords.• Speedingorrecklessdrivingorunauthorizeduseofcompanyvehicles.• Useofthreatening,profaneorabusivelanguage.• Demonstrationoflackofcourtesytowardsotheremployees,customersorvendors.• Notcompletingassignmentuptothequalityrequiredbythecompany.• Failuretoreportpersonalinjuryresultingfromanon-the-jobworksituation.

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SECTION8 SAFETY

N.C.Sturgeon,LPiscommittedtothesafetyofitsemployeesanditspropertyandequipment.Tothisend,wewillutilizeasafetyprograminourdailyactivities.Itisnecessarythatthecompanyestablishsafetyrulesandregulationstobeobservedbyallemployeesatalltimes.

Anyemployeewhodisregardsanycompanysafetyruleand/orregulationissubjecttodisciplinaryactionincludingterminationofemployment.

Withregardtotheserules,thefollowingwillbeconsideredstandardprocedureforallemployees:

• Shouldasafetyregulationbemodifiedsothatanemployee’ssafetyissomethinglessthanitshouldbe,theemployeeshouldinformChuckSturgeon(orhissuccessor).

• Allquestionsconcerningthereasonfordoingsomethinginacertainmannermaybeaskedofanymemberofmanagementatthistime.

• Employees’decisionsshouldalwaysbeguidedbythecompany’scommitmenttosafety.• Shouldahazardoussituationorconditionexistandadecisionhastobemadeonsafety

orproduction,safetyconcernsshouldalwaystakeprecedenceoverproduction.Itismanagement’sresponsibilitytoseethateveryemployeeatN.C.Sturgeon,LPis

providedwithsafeworkingconditions,allsafetyregulationsareobservedandemployeesusegoodcommonsensetoprotectthemselvesaswellasothers.Managementwillperiodicallyinspectworkingconditionsandmaysuspendallworkactivityuntilanunsafeconditioniscorrected.

ThemostimportantpartofsafetyisYOU.Itisyourresponsibilitytoabidebythesafetyrules-theserulesaremadeforyourprotection.ReportanypersonalinjuryIMMEDIATELY,howeverminor.ReportalldangerousconditionsandpracticestoyourSupervisor.

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SAFETYRULES

Thefollowingisnotacompletelistofsafetyrulesandtheserulesarenotintendedasasubstituteforcommonsenseandgoodjudgment.

• Hardhatswillbewornonthejobwhenworkingunderheavyobjectswhichmaybedroppedorfallaccidentally.

• Hard-toedshoeswillbewornwhenworkingonjobswhereheavyobjectsmayfall.• Firstaidkitsareprovidedoneachjob.ItistheresponsibilityoftheSuperintendentto

seethatthekitsareonthejobandremainwellstocked.• Allgasolineshallbestoredinapprovedsafetycans.Neverusegasolineforcleaning.• Knowwherethefireextinguishersarelocatedandknowhowtousethem.• Extensioncordsusedwithportableelectrictoolsandappliancesshallbeofthethree-

wiretype.Defectivecordsshallbereplacedontheday,whichtheybecomedefective.• Allditches5’deepmustbeshoredorslantedtotheangleofrepose.Dirtandmaterials

mustbeatleast3’backfromtheditch.• DefectivematerialsortoolsmustbeturnedintotheSupervisorandnotremainonthe

job.• ReadallMaterialSafetyDatasheetssuppliedwithhazardousmaterialsandabidebythe

instructions.DirectanyquestionstotheSuperintendent.• EmployeesshouldcheckwiththeSuperintendentregardinganypotentiallyhazardous

material.• Keepoxygenandgascylindersinanuprightpositionandsecured.Capsshouldbekept

ontanksnotinuse.Keeptanksfreefromoilandgrease.• Thecompanywillprovidesafetygogglesorglassesandhearingprotectionwhen

necessary.Theseprotectivedeviceswillbeusedwhenbreakingoutconcreteorasphalt,grinding,usingacuttingtorch,welding,sanding,usingchisels,chippingslag,breakingrock,handlinghazardousmaterialsandoperatingloudpowertoolsandmachinery.

• Wearclothessuitedforthejob.Thismeanshard-soledworkshoes,shirtsandlongpants.Removealljewelrybeforereportingtothejob.

• Practicegoodhousekeeping.Keepworkareaneat,cleanandfreefromstumblinghazards,grease,etc.

• Learntoliftthecorrectway.Bendknees,keepbackerect,gethelpfromheavyloads.• Noscuffingorhorseplayonthejob.• Donotrun.Keepfirmfootingandproperbalanceatalltimes• Keepmaterialsoutofwalk-ways.Benddownandremoveprotrudingnails.• Donotthrowanythingfromaheightbeforecheckingtomakesurethatnooneisbelow.• Keepguardsandprotectivedevicesinplaceatalltimes.Whenguardsareremovedfor

repairs,replaceinproperorderbeforestartingup.• Usetoolsonlyfortheirintendedpurposes.Donotusebrokenordangerouslydulltools.• Donotattempttooperatespecialmachineryorequipmentwithoutpermissionand

instructions.• Donotrepairoradjustmachinerywhileitisinoperation.Neveroilmovingpartsexcept

onequipmentfittedwithsafeguardsforthispurpose.

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• Neverworkundervehiclesthataresupportedbyjacksorchainhoistswithoutprotectiveblockingincaseofhoistorjackfailures.

• Donotdisconnectairhosesandcompressorsuntilhoselinehasbeenbled.• Fieldpersonnelarerequiredtoattendallscheduledtoolboxmeetings.Employeesmust

signtheirnameacknowledgingparticipationatthemeeting.• Specialcustomerrequirementsforsafety,includingthegovernments,mayapplyto

projectsonwhichthecompanyisworking.Employeeswillbeadvisedofthesesituationsandexpectedtofollowthesepoliciesandprocedures.

• AllemployeesarerequiredtoreadandlearnN.C.SturgeonSafetyManual.• Allemployeesarerequiredtoattendsafetyclasses.

HAZARDOUSWASTES

TheEnvironmentalProtectionAgencyhasgroupedcertainchemicalsandchemicalgroupsintocategorieswhichhavebeendefinedastoxic.Thismeansthatinconcentratedformsorbyaccumulatingandcombiningwithotherchemicals(eventheair)thesechemicalscanbehazardoustohumanhealthifexposureoccurs.

Fromtimetotimeinthenormalcourseoftheirjobs,employeesmayhandlematerialswhichhavebeenclassifiedashazardousbythestandardsoftheOccupationalSafetyandHealthAct(OSHA)regulations.

HazardousmaterialsthatarereceivedfromoursuppliersshouldhaveMaterialSafetyDataSheets(MSDS)orlabelswhichstatethechemicalingredientsofthecontents,precautionstotake,andwhattodoifexposureoccurs.

Employeeswillbeinstructedonhowtocontrolhazardouswastesandwhattodoiftheyareexposedtohazardouswastes.

Ifanyemployeesuspectsthatthematerialsorwasteshe/shemayencounterasanemployeearehazardous(whetherornottheyarebeingcreatedorusedbythecompany),he/sheshouldinformtheirSupervisorimmediately. Asacompany,wearecommittedtonotcreatingordisposingofhazardouswasteswhichwillcontaminatetheenvironment.Wheneverpossible,wewillchoosematerialswhichhavebeenjudgesasnon-hazardousandwillproperlydisposeofhazardousmaterialsifused.Also,wewillnotknowinglydumpanywastesintotheenvironmentatanytime.

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REPORTINGINJURIESANDACCIDENTS

Whenanyaccident,injury,orillnessoccurswhileanemployeeisatwork,itmustbereportedtoJobSuperintendentorSupervisorassoonaspossibleregardlessofthenatureorseverity.

Thecompanywillprovidetheproperformsforreportingjob-relatedaccidents,injuriesandillnesses.Anyemployeefailingtoreportsuchoccurrenceswillbesubjecttodisciplinaryaction.

Intheeventofavehicularaccidentinvolvingacompany-owned/leasedvehicleorwhileoncompanybusiness,theemployeemustreportallinformationimmediatelytoJobSupervisorand/ortheOffice.Innoinstanceshouldresponsibilityforanaccidentbeexpressedtoanyone,untiltheproperpersoninthecompanyhasbeennotifiedandpermissionhasbeenobtainedtomakestatement.

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SECTION9 TRANSPORTATIONANDTRAVEL EXPENSESCOMPANY-OWNED/LEASEDVEHICLES

AlltravelincompanyvehiclesonotherthancompanybusinessmustbeauthorizedinadvancebyChuckSturgeon(orhisSuccessor).Thisincludesvehiclesthatmaybeleasedbythecompanyaswellasthosevehiclesthatareownedbythecompany.

Thefollowingarespecificpoliciesrelatedtocompany-owned/leasedvehicles.• Dailyrecordsmustbekeptforallmileagedriven.• Company-owned/leasedvehicleswillbedrivenonlyasneededforjobsduringwork

hours.• Company-owned/leasedvehicleswillbedrivenonlyfortransportationtoandfrom

destinationsasspecified.• Company-owned/leasedvehicleswillnotbedrivenforprivateuseunlessspecific

arrangementshavebeenmadeinadvance.• Onlythedriverassignedtothevehicleisauthorizedtosignforgasoline,oil,etc.• Allchargereceiptsmustincludethenameandaddressofthevendor,thedateof

purchase,thenumberofgallonspurchased,theamountpaid,thevehicleIDnumber,thelicensetagnumber,thelicenseplatenumber,andthemileageontheodometer.

• Alcoholicbeveragesorillegaldrugsorchemicalswillnotbeallowedinacompanyvehicleatanytime.

• Nodriverwhohasbeendrinkingalcoholicbeveragesorisundertheinfluenceofdrugsorchemicalswillbeallowedtodriveacompany-ownedvehicleatanytime.

• Noone,otherthananauthorizedcompanyemployee,ispermittedtooperateorrideinacompany-owned/leasedvehicle.

• Vehiclesmustbekeptclean(interiorandexterior)atalltimesandthoroughlywashedonaregularbasis.

• Vehiclesmustbeproperlymaintainedaccordingtothemanufacturer’sschedule.• Anyemployeewhomisusesacompany-owned/leasedvehiclewillbesubjectto

dismissal.• Anydamagetoacompany-owned/leasedvehiclecausedbyemployee’scarelessnessor

misjudgmentistheresponsibilityoftheemployee.Thisincludesinsurancedeductibles.

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PERSONALVEHICLES

EmployeesmayusetheirpersonalvehiclesonofficialcompanybusinessprovidedpriorapprovalhasbeenobtainedfromBobPerry(orhissuccessor).AmileageratebasedonacceptableandcurrentInternalRevenueServiceregulationswillbepaidtoanemployeewhousehis/herpersonalvehicleonofficialcompanybusiness.Minimuminsurancerequirementsasspecifiedbythecompany’sinsurancecarriermustbeineffectatthetimetheemployee’spersonalvehicleisusedandtheemployeemayberequiredtoprovidetheappropriateproofofinsurance.SeeCompanyorJobSpecificPolicy(s).

TRAVELEXPENSES

Thecompanywillreimburseanemployeeforsomeexpensesincurredwhenhe/sheisonassignmentawayfromthenormalworklocation.Thecompanywillreimbursetheemployeeforthecostoftravel,lodging,meals,orotherexpensesdirectlyrelatedtoaccomplishingtheassignment.Employeesareexpectedtolimitexpensestoreasonableamounts.

AllbusinesstravelmustbeapprovedinadvancebyChuckSturgeon,BobPerryorJobSuperintendent.

Traveland/orbusinessexpensessubmittedforreimbursementmustbeaccompaniedbyreceiptsshowingname(s),date(s),businessdiscussed,amount(s),andtheaccounttobecharged.

Questionsconcerningtheproperprocedureformakingtravelarrangementsorreservations,thetypesandamountsofexpensesthatwillbereimbursed,personaltravelandtravelingwithcompanions,useofcreditcards,orthecompletionofexpensereportsshouldbedirectedtothePersonnelDepartment.

EXPENSERECORDS

Allexpenserecords(includinggasolinecreditcardreceipts)mustbeturnedinbiweekly.AnExpenseReportformmustbeproperlycompletedandsubmitted.Documentationforallexpensesisrequired.Anyitemthatisnotaccompaniedbyareceiptwillnotbeapproved.

TRAVELADVANCES

Anadvancetocoverreasonableanticipatedexpensesfor(out-of-state)travelmaybeprovidedtoanemployeeaftertravelhasbeenapproved.TheemployeeshouldsubmitawrittenrequesttoChuckSturgeon(orhisSuccessor)whenanadvanceisnecessary.

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SECTION10 EMPLOYEECONCERNS N.C.Sturgeon,LPbelievesinopencommunication.Ifanyemployeehasasuggestionorconcern,managementwantstoknowaboutit.Inmostcases,anemployeewillgetsatisfactionbydiscussingthematterwithhis/herSupervisor.However,thecompanyrecognizesthatnotallcomplaintswillbesatisfactorilyresolvedbetweenanemployeeandhis/herSupervisor.

Forcomplaints,whichcannotberesolvedinformallybetweenanemployeeandhis/herSupervisor;thefollowingprocedurehasbeenestablishedtoensureafairandimpartialreview.Allcomplaintswillbegivenpromptandobjectiveconsiderationinanatmosphereofmutualassistance.

Timeperiodsspecifiedmaybeextendedatthediscretionofthemanagementpersonreviewingaparticularcomplaintifextenuatingcircumstancesjustifyalongerperiod.

ThiscomplaintreportingproceduredoesnotapplydirectlytocomplaintsofharassmentwhicharemorespecificallydiscussedinSection5-WorkPoliciesandRegulations.

Step1 Theemployeemustpresenthis/hercomplainttoBobPerry(orhisSuccessor)whowillmakeathoroughinquiryintothefactsandcircumstancesofthecomplaintandwillmakeeveryefforttoresolvethematterpromptlyandfairly(within10workingdaysofreceivingthecomplaint).

Step2 IfanemployeeisdissatisfiedwiththedecisionofBobPerry(orhisSuccessor),theemployeemaysubmitawrittenreporttothenextmanagementlevelwithin10workingdaysofreceivingthedecisionofBobPerry(orhisSuccessor).

Iffurtherreviewisrequired,thehighermanagementlevelwillconduct

theappropriateinvestigationsandhearingsandadvisetheemployee(inwriting)ofthefindingsandofanychangeintheearlierdecision.

Regardlessofthetimelimitsestablished,thefilingofacomplaintwill

notbeacceptedafteranemployeehasbeenterminatedfromemployment.

Step3 Atanytimewithin5workingdaysfollowingreceiptofthedecisionreachedinStep2orwithin5workingdaysaftertheemployee’sterminationdate,theemployeemaysubmitawrittenrequestforfurtherreviewofhis/hercomplainttothePresidentofN.C.Sturgeon,LP.Thepersonnelactionstakenpreviouslywillbereviewedandafinaldecisionwillbemade.

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Acknowledgementof(Receiptand)UnderstandingReadandSignImmediately

Iunderstandand/oragreethat;

• ThestatementscontainedintheInformationHandbookforEmployeesofN.C.Sturgeon,LPareintendedtoserveasgeneralinformationconcerningN.C.Sturgeon,LPanditsexistingpolicies,procedures,practicesofemployment,andemployeebenefits.

• NothingcontainedintheInformationHandbookforEmployeesofN.C.Sturgeon,LPisintendedtocreate(norshallbeconstruedascreating)acontractofemployment(expressorimplied)orguaranteeemploymentforadefiniteorindefiniteterm.

• FromtimetotimeN.C.Sturgeon,LPmayneedtoclarify,amendand/orsupplementtheinformationcontainedintheInformationHandbookforEmployeesofN.C.Sturgeon,LPandthatthecompanywillinformmewhenchangesoccur.

• Ihave(received)(reviewed)acopyoftheInformationHandbookforEmployeesofN.C.Sturgeon,LP,havereadandunderstandtheinformationoutlinedinthehandbook,haveaskedanyquestionsImayhaveconcerningitscontentsandwillcomplywithallpoliciesandprocedurestothebestofmyability.

Employee’sSignature______________________________________________Date__________________________________________________Location_______________________________________________AuthorizedWitness_______________________________________________

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_________________________________________Drug-FreeWorkplacePolicy___

INTRODUCTION

Inresponsetofederalrequirementsfordrug-freeworkplaces,andinkeepingwithN.C.Sturgeon,Inc.’sconcernforthehealthandsafetyofitsworkforce,thefollowingDrug-FreeWorkplacePolicyhasbeeninstituted.

Thispolicycertifiesthecompany’sintenttomaintainadrug-freeworkplace.Thefirstsectiondescribestheprohibitionsofthispolicysuchasthemanufacture,distribution,sale,possessionoruseofacontrolledsubstanceintheworkplace.

Inaddition,thispolicycreatesaDrugAwarenessProgramthatprovidesinformationonthedangersofworkplacedrugusetoallemployeesaswellasinformationaboutavailableprivateandcommunitytreatmentfacilities.ThelastsectionofthispolicyliststhedisciplinaryactionsthatemployeeswillfaceforanyviolationofN.C.Sturgeon,Inc.Drug-FreeWorkplacePolicy.Finally,anemployeeacknowledgementmustbesignedanddatedbyeachemployeewhoreceivesacopyofthispolicy.

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ThefederalDrug-FreeWorkplaceActrequiresemployerswithgovernmentprocurementcontracts,purchaseorders,orgrantsof$25,000ormoretocertifythattheirworkplacesaredrug-free.Inaddition,anumberofstateshavelawsrequiringcertainemployerstomaintainadrug-freeworkplace.

However,someemployersvoluntarilyestablishandpromotesubstanceabusepoliciesanddrug-freeawarenessprogramsevenwhennotrequiredtodosobylaw.Adrugandalcoholabusepolicyeffectivelycommunicatedtoallemployeescanhelptoreducetheharmfuleffectofsubstanceabuseintheworkplace.

Thefollowingisasamplepolicyonly.Therefore,toensurecompliancewiththevariousfederalandstatelawsaffectingsubstanceabuse,consultationwithlegalcounselisrecommendedregardingtheimplementationofadrugandalcoholabusepolicy.

TheDrug-FreeWorkplaceActspecificallyrequiresN.C.Sturgeon,Inc.tonotifyeachemployeethat,asaconditionofemployment,eachemployeemust:

• Complywiththecompany’sDrug-FreeWorkplacePolicy;and• NotifyN.C.Sturgeon,Inc.ofanyconvictionforadrug-relatedoffensecommittedinthe

workplacewithinfive(5)daysoftheconviction.

Anyemployeewhoviolatesthiscompanypolicywillbesubjecttodisciplinaryactionuptoandincludingterminationofemployment.

PROHIBITIONS

N.C.Sturgeon,Inc.’sDrug-FreeWorkplacePolicyprohibitsemployeesfromengaginginanyofthefollowingactivities:

1. Use,possession,manufacture,distribution,dispensationorsaleofillegaldrugsoncompanypremisesorcompanybusiness,incompanysuppliedvehicles,orduringworkhours.

2. Unauthorizeduseorpossession,oranymanufacture,distribution,dispensationorsaleofacontrolledsubstanceoncompanypremisesorwhileoncompanybusinessorwhileincompanysuppliedvehicles.

3. Storinginalocker,desk,automobileorotherrepositoryoncompanypremisesanycontrolledsubstancewhoseuseisunauthorized.

4. Beingundertheinfluenceofacontrolledsubstanceoncompanypremisesorwhileoncompanybusiness,orwhileincompanysuppliedvehicles.

5. Anypossession,use,manufacture,distribution,dispensationorsaleofillegaldrugsoffcompanypremisesthatadverselyaffectstheindividual’sworkperformance,theirownorthesafetyofothersatwork,orthecompany’sregardorreputationinthecommunity.

6. Failuretoadheretotherequirementsofanydrugtreatmentorcounselingprograminwhichtheemployeeisenrolled.

7. FailuretonotifyN.C.Sturgeon,Inc.ofanyconvictionundercriminaldrugstatutesforaworkplaceoffensewithinfive(5)daysoftheconviction.

8. RefusaltosignastatementtoabidebyN.C.Sturgeon’sDrug-FreeWorkplacePolicy.

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AUTHORIZEDUSEOFPRESCRIPTIONMEDICINE

Anemployeeundergoingprescribedmedicaltreatmentwithanydrugwhichmayaltertheirphysicalormentalabilitymustreportthistreatmenttohis/herSupervisor,atthetimetheprescriptionisorderedtodeterminewhetheratemporarychangeintheemployee’sjobassignmentiswarrantedduringtheperiodoftreatment.

DRUGAWARENESSPROGRAM

Toassistemployeesandtheirfamiliestounderstandandavoidtheperilsofdrugabuse,N.C.Sturgeon,Inc.hasdevelopedacomprehensiveDrugAwarenessProgram.Thecompanyusesthisprograminaneducationalefforttopreventandeliminatedrugabusethatmayaffecttheworkplace.

TheDrugAwarenessProgramwillinformemployeesabout:

• Dangersofdrugabuseintheworkplace.• N.C.Sturgeon,Inc.’sDrug-FreeWorkplacePolicy• Availabilityoftreatmentandcounselingforemployeeswhovoluntarilyseeksuch

assistance,and• DisciplinaryactionsforviolationsofN.C.Sturgeon,Inc.’sDrug-FreeWorkplacePolicy.

EmployeesofN.C.Sturgeon,Inc.areourmostvaluableresourceand,forthatreason,theirhealthandsafetyisournumberoneconcern.Anydrugusewhichimperilsthehealthandwellbeingofouremployeesorthreatensourbusinesswillnotbetolerated.Theuseofillegaldrugsandabuseofothercontrolledsubstancesonoroffdutyisinconsistentwiththelawabidingbehaviorexpectedofcitizens.Employeeswhouseillegaldrugsorabuseothercontrolledsubstancesonoroffdutytendtobelessproductive,lessreliable,andpronetogreaterabsenteeism.This,inturn,canresultinincreasedcosts,delaysandriskstoN.C.Sturgeon,Inc.’sbusiness.

Druguseintheworkplaceputsthehealthandsafetyoftheabuserandallotherworkersaroundthematincreasedrisk.Employeeshavetherighttoworkinadrug-freeenvironment.Inaddition,drugabuseinflictsaterribletollonthenation’sproductiveresourcesandthehealthandwell-beingofAmericanworkers.

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Earlyrecognitionandtreatmentofdrugabuseisimportantforsuccessfulrehabilitation.Wheneverfeasible,N.C.Sturgeon,Inc.willassistemployeesinovercomingdrugabusebyprovidinginformationontreatmentopportunitiesandprograms.However,thedecisiontoseekdiagnosisandaccepttreatmentfordrugabuseisprimarilytheindividualemployee’sresponsibility.

Employeeswithdrugabuseproblemsshouldrequestassistancefrommanagement.N.C.Sturgeon,Inc.willtreatallsuchrequestsconfidentiallyandwillrefertheemployeetotheappropriatetreatmentandcounselingservices.Employees,whovoluntarilyrequestN.C.Sturgeon,Inc’sassistanceindealingwithadrugabuseproblemmaydosowithoutjeopardizingtheircontinuedemployment,providedtheystrictlyadheretothetermsoftheirtreatmentandcounselingprogram.Ataminimum,thesetermsincludetheimmediatecessationofanyuseofdrugs,andparticipation,whererequiredbyaprogram,inperiodicunannouncedtestingforatwenty-four(24)monthperiodfollowingenrollmentintheprogram.

Voluntaryrequestsforassistancefromemployeeswillnot,however,preventdisciplinaryactionforviolationofN.C.SturgeonInc.’sDrug-FreeWorkplacePolicy.

N.C.Sturgeon,Inc.hasinstitutedazerotolerancelevelprogram.N.C.Sturgeon,Inc.iscommittedtomaintainingasafeworkplacefreefromtheinfluenceofdrugs.AllemployeesareherebynotifiedthatN.C.Sturgeon,Inc.willcomplywiththerequirementsoftheDrug-FreeWorkplaceActof1988,andallapplicableregulationsissuedthereunder,aswellas,whenapplicable,anymorestringentrulescreatedbyotherfederalagencies.

N.C.Sturgeon,Inc.’sDrugAwarenessProgramdoesnotcreateanemploymentcontractbetweentheemployerandemployee.Furthermore,N.C.Sturgeon,Inc.hasthesolerighttomodifythepolicyandprogramatanytime.

DISCIPLINARYACTIONS

1. AviolationofN.C.Sturgeon,Inc’sDrug-FreeWorkplacePolicyissubjecttodisciplinaryaction,uptoandincludingterminationofemployment,atthecompany’ssolediscretion.

2. Asaminimum,anyemployeetestingpositivefordrugswillbeplacedon10daysuspensionandmustshowverificationofcompletionofdrugrehabilitation.Aftersuccessfulcompletionofdrugrehabilitationattheemployeesexpense.ItshallbetheCompany’sdecisionastoreemployment.

3. N.C.Sturgeon,Inc.willpromptlyterminateanyemployeewhotestspositivefordrugswhileundergoingtreatmentandcounselingfordrugabuse.

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NOTICETOALLPERSONNELOFDISCIPLINARYPOLICY

ThisisaformalnoticeofN.C.Sturgeon,Inc.’sintenttotakedisciplinaryaction,uptoandincludingterminationofemployment,againstanyemployeewhoviolatesN.C.Sturgeon,Inc.’sDrug-FreeWorkplacePolicy.

N.C.Sturgeon,Inc.’sDrug-FreeWorkplacePolicyprohibitstheuse,sale,distribution,manufactureorpossessionofallcontrolledsubstancesaslistedinSchedulesIthroughVofSection202oftheControlledSubstanceAct(21U.S.C.812).

Companypolicyalsoprohibitstheperformanceofworkorpresenceatanycompanybuilding,facility,equipmentorworkarea/sitewhileundertheinfluenceofacontrolledsubstance.

DISCIPLINARYACTION

1stOffense Suspensionfor10workingdayswithoutpaytoimmediateterminationandverificationofcompletionofDrugRehabilitation.

2ndOffense Immediatetermination.

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N.C.STURGEON,INC.

Drug-FreeWorkplacePolicyEmployeeAcknowledgement

_______________________________________________________________

______________________ReadandSignImmediately__________________

Iacknowledge,understand,and/oragreethat:

• IhavereceivedacopyoftheDrug-FreeWorkplacePolicyforEmployeesofN.C.Sturgeon,Inc.

• IhavecarefullyandthoroughlyreadtheDrug-FreeWorkplacePolicyforEmployeesofN.C.Sturgeon,Inc.

• IunderstandtherequirementsoftheDrug-FreeWorkplacePolicyforEmployeesofN.C.Sturgeon,Inc.andagree,withoutreservation,tofollowthispolicy.

Employee’sNamePrinted__________________________________________________

Location/Department______________________________________________________

Employee’sSignature______________________________________________________

AuthorizedWitness________________________________________________________

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NOTICETOALLEMPLOYEES“POSTINJURYFITFORDUTY”TESTINGEffectiveJanuary1,2001,itisthepolicyofN.C.Sturgeon,LPhereinaftertoas“Company”thatanyofficeroremployeeofthe“Company”whohasanon-workorworkrelatedinjuryorillnessthatreasonablymayaffecttheabilitytoperformtheirusualjob,willberequiredtoundergoWorkSTEPSFitforDutyEmploymenttestingassoonastheirconditionisstableand/orattheprofessionaldiscretionofthedoctororlicensedtherapistperformingsuchtesting.ThedoctorortherapistperformingthetestisanindependentcontractorandisnotownedoroperatedbyWorkSTEPS.

“FitforDuty”testingisauthorizedbyFederalLawunderthe“AmericansWithDisabilitiesAct”(ADA),asreferencedintheTechnicalAssistanceManualunderSectionVI-13&14whichstates:

UndertheADA,medicalinformationormedicalexaminationmayberequiredwhenanemployeesuffersaninjuryonthejob.Suchanexaminationorinjuryalsomayberequiredwhenanemployeewishestoreturntoworkafteraninjuryorillness,ifitisjob-relatedandconsistentwithbusinessnecessity:

• todetermineiftheindividualmeetstheADAdefinitionof“individualwithadisability,”ifanaccommodationhasbeenrequested.

• todetermineifthepersoncanperformessentialfunctionsofthejobcurrentlyheld,(orheldbeforetheinjuryorillness),withorwithoutreasonableaccommodation,andwithoutposing“directthreat”tohealthorsafetythatcannotbereducedoreliminatedbyreasonableaccommodation.

• toidentifyaneffectiveaccommodationthatwouldenablethepersontoperformessentialjobfunctionsinthecurrent(previous)job,orinvacantjobforwhichthepersonisqualified(withorwithoutaccommodation).

WorkSTEPSPostInjuryFitforDutyEmploymentTestingmustbeaccomplishedwithinthree(3)workingdaysfromthedateofreleasetoworkinanycapacitybyaphysicianornotificationviacertifiedmailby“Company”.“FitforDuty”informationwillbekeptinaconfidentialfileseparatefrompersonalrecords.FailuretoreturntoworkasscheduledviaphysicianreleasewillresultinimmediateterminationandfailuretoperformWorkSTEPSFitforDutyEmploymenttestingwithinthree(3)workingdaysofcertifiednotificationwillresultinterminationofemploymentby“Company”.

________EmployeeInitials

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NOTICETOALLEMPLOYEESRe:RETURNTOWORKAFTERANINJURYORILLNESS

EffectiveJanuary1,2003,itisthepolicyofN.C.Sturgeon,LPhereinafterreferredtoasthe“Company”,thatsaid“Company”reservestherighttofilllightormodifieddutypositions,ifanyarecurrentlyavailable,withtemporarilyinjuredorillemployeesuntiltheyreasonablyabletotransitiontotheirpreviouspositionortransfertoapermanentpositionwiththe“Company”thatdoesnotexceedtheircapabilitieswithinthetimeperiodsdescribedbelow.

Anyemployeewhohasastablenon-workrelatedinjuryorillnesswillberequiredtoreturntoworkfulldutywithin60dayspostinjuryorbesubjecttoterminationunlesssignificantprogresshasbeendocumentsbytheattendingphysician,bythetransitionalworkprogram,orbythephysicianortherapistperformingWorkSTEPSFitforDutyEmploymentTestingnomorethanever30daysasstatuschangesaftertheinjuryorillness.Employeeswhocontinuetoshowsignificantprogressupto60days,butstillcan’tperform“fullduty”,mayhavea30dayextensiontothispolicyasdeterminedbytheattendingphysician,bythetransitionalworkprogram,orbythephysicianortherapistperformingWorkSTEPSFitforDutyEmploymentTesting.Furthermore,employeeswhohavereachedmaximummedicalimprovement(MMI)asdeterminedbytheirphysicianandhavenotdemonstratedadequatecapabilitytoperformtheessentialfunctionsofthejobheldpriortotheinjuryorillnesswithorwithoutaccommodationwillbeterminatedunlesstherearevacantpermanentpositionstheemployeeisqualifiedforoutsideoflight,ormodifieddutythatdonotexceedtheirphysicalcapabilities.FederalDistrictCourthasheldthata“returntoworkprogramdoesnotviolatetheAmericanwithDisabilityAct(ADA)whenitpermitstheemployertoplaceonmedicallayoffinjuredemployeeswhoreachMMI.”(Hendricks-Robinsonvs.ExcelCorporation).Itisourpolicythatmodifiedorlightdutypositionsareavailableforrecentlyinjuredemployeesneedingtransitionalreturntowork.

CONFIDENTIALITYNOTICE:

Themedicalinformationcollectedduring“FitforDuty”examinationsorreceivedorreceivedregardingfunctionaltestsandMMIdeterminationswillbekeptinaseparatefilefromthepersonnelfileoftheemployeewhohassufferedtheinjuryorillness.

_____________

EmployeeInitials

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