FULL-TIME EMPLOYEE HANDBOOK - TouchPoints Portalbenefits.larsondoors.com/media/4020275/employee-handbook.pdf · From Our President and CEO, Jeff Rief Welcome to Larson Manufacturing

FULL -TIME EMPLOYEE HANDBOOK

From Our President and CEO, Jeff Rief

Welcome to Larson Manufacturing Company! We want your employment to be successful, enjoyable and mutually rewarding. That means that expectations exist for both you and the Company. Through respect for each other, open and honest communications, effective teamwork, and a mutual focus on the customer, we will achieve continued success. When we work effectively together to service our customers, we will continue to be America’s #1 Selling Storm Door Manufacturer in North America.

This Handbook helps to explain what you can expect from us and what we expect from you. After your thorough review of the policies, programs, and responsibilities outlined in this Handbook, you may still have questions. Please direct any questions, comments, or suggestions to your Department Leadership Team (which consists of your direct Supervisor, Manager, or Team Leader) or to the Human Development Team.

In addition to our Corporate facility in Brookings, South Dakota (Eastbrook), we have manufacturing plants located in Brookings South Dakota (Wogen Center), Lake Mills, Iowa and an affiliated Company located in Mocksville, North Carolina. Distribution Centers are located in Albert Lea, Minnesota; Janesville, Wisconsin; Fostoria, Ohio; North Kansas City, Missouri; Allentown, Pennsylvania; Mocksville, North Carolina; and Grand Prairie, Texas.

Again, welcome to the Larson Manufacturing Company Team! Jeff Rief President/Chief Executive Officer Larson Manufacturing Company

Table of Contents

CHAPTER 1 WELCOME TO LARSON

Philosophy ............................................................. 1

Mission ................................................................ 1-2

About Our Company ............................................... 2

Commitment to Quality and Continuous Improvement ...................................................... 3

CHAPTER 2 THE LARSON ENVIRONMENT

Human Relations .................................................... 1

Equal Employment Opportunity .............................. 1

Corporate Personnel Committee ............................. 2

Employee Relations................................................ 2

Larson’s Commitment to Employees .................... 2-3

Disability Accommodations ..................................... 3

Disability Management Program ............................. 3

CHAPTER 3 ABOUT THE JOB

Employment Applications ....................................... 1

Employment Verifications ....................................... 1

Work Schedules ..................................................... 1

Employment Classifications ................................. 1-2

Career Development .............................................. 2

Career Opportunities .............................................. 3

Work Schedule and Job Reassignments ................. 3

Department/Shift Transfers ..................................... 3

Performance Evaluation ...................................... 3-4

Relocation .............................................................. 4

Immigration Laws ................................................... 4

Hiring of Relatives .................................................. 4

Outside Employment .............................................. 4

EMPLOYMENT

Retirement ............................................................. 5

Resignations .......................................................... 5

Layoff ..................................................................... 5

Terminations .......................................................... 5

Exit Interviews ........................................................ 6

GENERAL INFORMATION

Appearance/Dress Code ..................................... 6-7

Company Bulletin Boards ....................................... 8

Donations .............................................................. 8

Community Service Policy ................................... 8-9

Employee Activities Committee .............................. 9

Employee Breaks ................................................... 9

Excess Equipment or Materials .............................. 9

Personnel Files ................................................. 9-10

Records ............................................................... 10

CHAPTER 4 FOR YOUR SAFETY AND HEALTH

Larson Commitment to Safety and Health .............. 1

Safety Commitment................................................ 1

General Health Commitment ............................... 1-2

Safety Responsibilities and Employee Involvement ........................................................ 2

Occupational Safety and Health Administration (OSHA) and Voluntary Protection Program

(VPP) ............................................................... 2-3

Work-Related Injuries, Illnesses, Accidents and Near-Miss Incidents ............................................ 3

Personal Protective Equipment (PPE) .................... 3

Security .............................................................. 3-4

Disaster Planning and Recovery Management Information .......................................................... 4

Miscellaneous Safety and Health ........................... 4

CHAPTER 5 BENEFITS AND COMPENSATION

Benefits ................................................................. 1

Medical Coverage ............................................... 1-2

Benefits Continuation (COBRA) ............................. 2

Pre-Tax Deductions and Flexible Spending Accounts ............................................................. 2

Life Insurance/Dependent Life Insurance ............ 2-3

Profit Sharing ......................................................... 3

401(K) Plan ............................................................ 3

CHAPTER 5 CONTINUED BENEFITS AND COMPENSATION

Short-Term Disability (STD) .................................... 3

Long-Term Disability (LTD) .................................. 3-4

Wellness and Healthy Lifestyles Program ............... 4

Workers’ Compensation Insurance ......................... 4

Company Bonus Programs (Based on Company Performance) ...................................................... 4

Employee Continuing Education ............................. 4

Larson Memorial Scholarship Program ................... 5

Employee Purchase Program ................................. 5

Compensation ........................................................ 5

Pay ........................................................................ 5

Salaried Exempt Employees ................................... 6

Holidays .............................................................. 6-7

Shift Differential Pay ............................................... 7

Overtime ................................................................ 7

Time Keeping ......................................................... 7

“Off the Clock” Work ............................................... 7

Call-Backs ........................................................... 7-8

Pay Corrections ...................................................... 8

Personal Data ........................................................ 8

Pay Advances ........................................................ 8

Pay Deductions ...................................................... 8

Reimbursements of Business Expenses ................. 8

CHAPTER 6 TIME OFF

Time Off ................................................................. 1

Unpaid Time Off (U.T.O.) ........................................ 1

Paid Time Off (P.T.O.) ......................................... 1-3

Absenteeism and Corrective Action ..................... 4-6

Leaves of Absence ................................................. 7

Family and Medical Leave (FMLA)....................... 7-9

Maternity/Pregnancy Leave .................................... 9

Short-Term Disability Leave ............................. 10-11

Long-Term Disability Leave .................................. 11

Military Leave ....................................................... 11

Bereavement Leave ........................................ 11-12

Jury Duty Leave ................................................... 12

Witness Duty Leave.............................................. 13

Return to Work Following Illness or Injury ............. 13

Failure to Return from Leave ................................ 13

CHAPTER 7 EMPLOYEE CONDUCT

General Behavior ................................................... 1

Attendance ............................................................ 1

Non-Disclosure ................................................... 1-2

Tobacco Use .......................................................... 2

Parking Facilities .................................................... 2

Solicitation ............................................................. 2

Conflicts of Interest ................................................ 2

Use of Company Equipment and Services ........... 2-3

Return of Property .................................................. 4

Respectful Work Environment Guidelines ............ 4-5

Employee Assistance ............................................. 5

Problems and Complaints ...................................... 5

Corrective Action ................................................. 6-7

INDEX

CONTACT INFORMATION

EMPLOYEE ACKNOWLEDGMENT FORM

January 2007 Chapter 1 Page 1 of 4

CHAPTER 1

Welcome to Larson

OUR PHILOSOPHY Companies with a passion for satisfying their employees are the most successful in the long run. If you treat people well, respect their ideas and recognize their individual talents, people will put their heart into their work. And because of this, they become dedicated and loyal employees who put forth their best efforts at satisfying the customer. With that in mind, Larson Manufacturing Company has developed its Philosophy of Business as follows:

The Company will try to maximize its long-term profits by ethically and legally producing high quality products at the lowest possible competitive prices. The Company will serve our customers at the highest-level possible, to maintain or increase our market share. With the profits generated by the efforts and performance of our employees, the Company will share its success by distributing a portion of the profits into an Employee Profit Sharing Account for each employee. The Company will strive to provide its stockholders with an acceptable return on their investment. Finally, the Company will share profits with the community in a responsible way.

OUR MISSION Larson Manufacturing Company is a manufacturer and distributor of products for the residential building products industry. The Company is the Number One Storm Door Manufacturer in North America and is continuing to grow its position in the marketplace. Our desire and goal is to be recognized by our retailers as offering the best products and service in the building products industry in order to help them exceed their goals for


profits in our product category. Commitment to excellence in product design, quality, and service for our customers is our highest priority. ABOUT OUR COMPANY Larson Manufacturing has been producing quality storm doors and windows for over 50 years. The Company was founded by Oscar Larson in Albert Lea, Minnesota in 1954. In 1962, Oscar and his youngest son Dale, moved operations to Lake Mills, Iowa. It remains one of the Company’s major manufacturing centers. In 1964, Larson opened an additional manufacturing center in Brookings, South Dakota. Since then, Brookings has become corporate headquarters for Larson’s customer service, manufacturing, and distribution of storm doors and windows. Over the years, Larson has grown from a small, one-factory location to the largest manufacturer of storm doors in North America. In 1966, Larson designed and built its first solid wood core storm door which ultimately became the industry standard. By 1994, the Company had built and sold over a million storm doors in a single year. This growth continued and by 1998, the Company reached another milestone by doubling its volume to over two million storm doors in a single year. In 2005, Larson Manufacturing strengthened its position in the marketplace even further by adding the Pella brand of storm doors to the product mix through the acquisition of the Pella Storm Door Division. Larson has a history of crafting doors and windows with the highest performance and quality. The Company offers a diverse collection of product, provides unsurpassed service, and is continually improving its manufacturing process and designs. In addition to its three manufacturing centers in Iowa and South Dakota, as well as an affiliated manufacturing facility in North Carolina, Larson Manufacturing maintains a solid distribution network with the operation of Distribution Centers throughout the United States. The Company also prides itself on its exceptional customer service, which has become a benchmark for the industry. Larson Manufacturing attributes its success as a Company to unsurpassed customer service, innovative design and technologies, quality products, and a talented and dedicated workforce. It is these qualities that will help ensure the Company’s success in the future.


Commitment to Quality and Continuous Improvement

Larson Manufacturing is committed to a work environment where employees have a high commitment to quality and continuous improvement. Quality is the responsibility of every employee at Larson. Our commitment to producing high quality products and continuously looking for improvement each day contributes to the continued success of the Company.

LARSON’S COMMITMENT TO QUALITY AND CONTINUOUS IMPROVEMENT Larson Manufacturing’s success is derived from a commitment to quality throughout the organization. This commitment is achieved by:

• Ensuring quality awareness at all levels through education and performance measurement.

• Continuously monitoring the needs of customers in products, service, delivery, and key performance indicators.

• Developing individual and departmental quality objectives. • Stressing the importance of each job and how it affects internal and external

customers. • Making certain our specifications meet the customers’ expectations.

QUALITY AWARENESS Quality awareness is achieved in each department through education, training, and the measurement of performance. You will be expected to participate in training activities and achieve an acceptable level of understanding of the information being communicated. Your understanding may at times be evaluated through the answering of written and verbal questions. If an acceptable level of understanding is not indicated, further training will be required. Quality awareness is also achieved through the communication of performance measures. Each department will have specific performance measures that you are expected to understand and you must be knowledgeable about the current levels of performance. You also will be expected to understand how your performance impacts these measures.


If at any point you don’t understand the expectations related to quality, you should contact your Department Leadership Team for assistance.

Monitoring the Needs of Customers The needs of customers will constantly be monitored in the areas of product, service, delivery, and key performance indicators. This monitoring is necessary to make certain that the results expected are being seen by the customer and that the customers’ expectations are being met. As the demands of customers change, it is likely that expectations of your department will change. When this occurs, training will be provided to ensure a clear understanding of the new expectations. This training can be in many forms from simple departmental communication to formal classroom training. You are expected to understand the changes. If you need further clarification, please contact your Department Leadership Team.

Individual and Departmental Quality Objectives Individual and departmental quality objectives are developed for all areas of the Company. Education and training on these objectives will be provided and an understanding by individuals will be verified. It is very important that you understand the specific quality objectives of any job you perform, as well as the overall quality objectives for your department. If at any time you don’t fully understand these objectives, you should contact your Department Leadership Team or a member of the Quality Assurance Department.

The Importance of Each Job Every job at Larson Manufacturing is critical in achieving customer satisfaction and ensuring the continued success of the Company. Whatever job you perform on a given day impacts the two types of customers. The external customer is the retailer we sell to and ultimately the owner of the product. The internal customer is one of your coworkers who will in some way be directly impacted by the work you do. It is very important that you understand both the expectations of your internal and external customers. Your job is very important to both types of customers.

Ensuring Specifications Meet Customer Expectations Job and product specifications are in place to provide definition to the expected results of each job at Larson Manufacturing. These specifications are designed so that when met we can be assured that the customer will be satisfied. Since customer expectations change, we will continuously monitor those expectations to make certain that our specifications are correct. At times it will be necessary to change specifications of jobs. When this occurs, training will be provided to ensure a clear understanding of the new specifications. This training can be in many forms from simple departmental communication to formal classroom training. You are expected to understand the changes. If you need further clarification, please contact your Department Leadership Team or a member of the Quality Assurance Department.


CHAPTER 2

The Larson Environment

Larson Manufacturing fosters an environment that encourages continuous improvement and ability to work in a team environment. Through teamwork, Larson encourages open, honest, and direct communication within all work groups throughout the Company. By working together as a team, employees contribute to the ultimate success of the Company. HUMAN RELATIONS

Our Company is one of America’s premier companies in its service to customers. We need to apply these same ideas and principles to each other as we work toward excellence in the workplace. We must display the same level of integrity with each other as we do with our customers.

While we have high standards and expectations of our employees, we also provide a climate of support and encouragement. Our employees deserve support in their career growth, and Larson deserves the employee’s best efforts in accomplishing our Company goals. EQUAL EMPLOYMENT OPPORTUNITY Larson is an equal employment opportunity employer and does not discriminate against employees or job applicants on the basis of race, color, sex, religion, age, disability, national origin, veteran status or any other condition protected by applicable federal, state and local laws. Any employee with questions or concerns about any type of discrimination in the workplace is encouraged to bring these issues to their Department Leadership Team or to the Corporate Personnel Committee (CPC). Anyone found to be engaging in any type of unlawful discrimination will be subject to corrective action, up to and including termination of employment.


CORPORATE PERSONNEL COMMITTEE The Corporate Personnel Committee (CPC), based at the Brookings, South Dakota location, is responsible for administering personnel policies and practices fairly and consistently throughout the Company. The multi-person panel reviews issues and assists Department Leadership Teams with corrective action and development decisions, provides guidance to ensure all applicable employment legislation is adhered to and acts as a review board for all employees who wish to express their concerns. EMPLOYEE RELATIONS (Amended 2/20/09) Larson Manufacturing believes that the work conditions, wages, and benefits it offers to its employees are competitive with those offered by other employers in this area and in its industry. If employees have concerns about work conditions or compensation, they are strongly encouraged to voice these concerns directly to their Department Leadership Team. Our experience has shown that when employees deal directly with their Department Leadership Team, the work environment can be excellent, communications clear, and attitudes positive. We believe that Larson Manufacturing amply demonstrates its commitments to positive employee relations by responding effectively to employee concerns. With these direct employer/employee communications, we don’t think a union is necessary here. If you are approached by a union and asked to sign an authorization card, we strongly encourage consideration of such related issues as: regular deductions from paychecks for representation fees; the potential for outside interference with Supervisory relationships; and the commitment to comply with directions from third parties. As stated, our position regarding union representation is simple and straightforward. However, please recognize that this is our opinion, not a rule. While we believe staying union-free is best for all of us, we will respect our employees’ opinions. LARSON’S COMMITMENT TO EMPLOYEES Larson Manufacturing is committed to providing and caring for its employees. Providing a good place to work, individual recognition, competitive wages, good benefits, excellent profit sharing, and a respectful workplace are all part of being the Number One Selling Storm Door Manufacturer in North America.


Larson Manufacturing is a performance-driven Company, and its success is derived from a commitment to its employees throughout the organization. This commitment is achieved by: • Developing, through training, a flexible workforce capable of performing at the most

efficient level in our industry. • Maintaining a competitive pay and benefit program that also provides a means for

employees to share in the success of the Company. • Communicating Company goals, the progress achieved towards these goals, and

recognizing significant contributions made by our employees. • Empowering employees so problem-solving and decision-making are made at the

most appropriate level. • Nurturing a culture of innovation for new products. DISABILITY ACCOMMODATIONS Larson Manufacturing will make reasonable accommodations for qualified individuals. A reasonable accommodation does not include lower production and quality standards, and it must not result in an undue hardship. This policy governs all aspects of employment, including selection, job assignment, compensation, corrective action, termination, and access to benefits and training. If an employee, due to a work or non-work related injury, has a temporary disability that requires work restrictions, the Department Leadership Team should be consulted immediately to determine eligibility for the Larson Manufacturing Disability Management Program. DISABILITY MANAGEMENT PROGRAM Larson Manufacturing’s Disability Management Program is a program that monitors an employee who has a work-related or non-work-related injury or illness and is unable to perform the essential functions of their regular position. The goal of this program is the safe return of the affected employee to their regular duties. It is not the intent of Larson Manufacturing to create permanent light-duty positions. If the employee is unable to perform the essential functions of their regular position, they may be temporarily assigned to a transitional light-duty position if available. The intent of the return-to-work plan is to put the employee back to full duty, or very close to it, within three months. Any return-to-work plan that requires more than a three-month process will be reviewed by the CPC. For more details, please contact your Department Leadership Team.


CHAPTER 3

About the Job

EMPLOYMENT APPLICATIONS Larson relies upon the accuracy of information contained in the employment application, as well as the accuracy of other data presented throughout the hiring process and employment. Any misrepresentations, falsifications, or material omissions in any of this information or data may result in termination of employment, regardless of when discovered. EMPLOYMENT VERIFICATIONS As part of the ongoing employment relationship, it may be necessary to do various record checks, such as credit, criminal, driving, or any other applicable verification within state and federal guidelines. WORK SCHEDULES Work schedules for employees vary throughout our Company. The Department Leadership Team will advise employees of their individual work schedules. Staffing needs and operational demands may necessitate variations in starting and ending times as well as variations in the total hours that may be scheduled each day and week. Larson will give as much advance notice as possible when business necessitates a schedule change. EMPLOYMENT CLASSIFICATIONS All employees – whether full-time, part-time or temporary – are classified as exempt or non-exempt for overtime and minimum wage requirements. Exempt employees are employees who are exempt from the minimum wage and overtime pay provisions as set forth in the guidelines of the Fair Labor Standards Act. Non-exempt employees will be paid in accordance with the rules governing overtime. Proper classification of employees is important to administering salaries, determining eligibility under Larson Manufacturing’s employee benefit plans, and complying with employment and tax laws. Larson offers full-time, temporary, seasonal and part-time


(limited areas) employment opportunities to meet a variety of staffing requirements. Larson also may use contract agencies to respond to changing staffing requirements. See benefit plan and/or policies for eligibility information. Full-Time Regular Employee These are employees who are scheduled to work a minimum of forty (40) hours per week. Full-Time Seasonal Employee Full-Time Seasonal Employees work a minimum of forty (40) hours per week to support seasonal business. Part-Time Regular Employee These are employees who are normally scheduled to work less than thirty (30) hours per week. Part-Time Seasonal Employee Part-Time Seasonal Employees usually work less than thirty (30) hours per week to support seasonal business. Part-Time Extended Benefit Employee Part-Time Extended Benefit Employees are normally scheduled to work less than thirty (30) hours per week and have qualified for a portion of the Larson benefit program. This part-time classification is limited to certain departments to meet specific needs. 900 Hour Temporary Employee These are employees who can be either full-time or part-time, and they have been hired to work the duration of a specific project or assignment. Temporary assignments are expected not to last beyond 900 hours in a calendar year. Intern These employees are students who work the duration of specific projects or assignments. The purpose of this classification is the exchange of knowledge between the student and the Company for mutual benefit. CAREER DEVELOPMENT Employees should take an active role in managing their career development. Many opportunities are available to employees and the employees need to prepare themselves to take advantage of these opportunities. There are multiple ways for employees to broaden their skills and enhance their job. This may mean changing positions to a new department or even changing to an entry-level job that may offer a new and different path. All of Larson Manufacturing Company's locations have bulletin boards that provide information about career opportunities and career development that are available for employees.


CAREER OPPORTUNITIES When a position in a department becomes available, qualified employees may apply for the position. To be considered, employees must complete the appropriate Position Application Form and return the form to the Human Development Department. It is our intent to post most available positions on the Job Interest Bulletin Board with the exception of Department Leadership positions. In limited cases, the Company may not post other positions if it deems that it would be best to seek outside applicants. The Company may also reassign employees as determined by business needs. Business needs and skill set abilities will be used to determine reassignment. The most qualified individual who expresses interest in the available position will be considered. Selection will be based on a number of factors including, but not limited to, aptitude and ability. It is the policy of Larson Manufacturing to promote from within whenever possible. At times, however, it will be necessary to bring in personnel with certain qualifications and experiences from the outside in order to sustain the growth of Larson Manufacturing and to enhance the skill level of the Company. WORK SCHEDULE AND JOB REASSIGNMENTS Larson Manufacturing will schedule its employees to work on various shifts and days to meet our requirements to serve our customers' needs. When business needs dictate, employees may be reassigned to work in different jobs, departments, shifts or work schedules depending on their skills and expertise and our business needs. Failure to accept reassignment to an alternate work schedule will be considered a voluntary resignation. DEPARTMENT/SHIFT TRANSFERS Larson Manufacturing recognizes that an employee’s personal situation may change from time to time resulting in a request for a shift or department transfer. Approval of such transfer will be at the discretion of the Company. To request a transfer, please contact your Department Leadership Team. PERFORMANCE EVALUATION Employees are strongly encouraged to discuss job performance and goals with their Department Leadership Team on a frequent ongoing basis. In addition, employees may receive periodic performance reviews. Performance reviews are conducted to provide both the Department Leadership Team and employees the opportunity to discuss job tasks, encourage and recognize strengths, and identify and correct weaknesses.


To recognize individual performance, Larson may award merit-based adjustments. If an employee’s job status and pointing allows for progression, the employee may receive a review and salary adjustment according to a progression schedule. All increases in pay will be individually based upon performance. Employees who do not meet the required performance levels are not eligible for a wage increase and may be placed on a Performance Improvement Plan wherein they will be given specific goals for improvement and feedback on their performance. If at any time during the Performance Improvement Plan, the specific goals for improvement have not been met, the Department Leadership Team will make a recommendation to the CPC for review of the employee’s employment status. RELOCATION Movement at Company’s Request: The Company may assist with moving and travel expenses to the new location within reasonable limits. For details, contact your Department Leadership Team. Movement at Employee’s Request: Employees who request movement to another plant facility are responsible for their own relocation costs and moving arrangements. IMMIGRATION LAWS Larson is committed to employing only United States citizens and aliens who are authorized to work in the United States. Larson will comply with all applicable state, federal, and local laws regarding employment. HIRING OF RELATIVES Larson believes that employment of relatives or persons in close relationships in the same area may cause serious conflicts and problems with favoritism and employee morale. In situations where a conflict or the potential for conflict arises, even if there is no Department Leadership Team relationship involved, the parties may be separated by reassignment. OUTSIDE EMPLOYMENT Larson Manufacturing recognizes that employees sometime seek additional employment during their off hours. Outside employment that constitutes a conflict of interest is prohibited. If the employee has an illness or injury and is unable to work full duty at Larson, the employee is still expected to adhere to those same restrictions outside of the employee's work schedule.


Employment

Larson Manufacturing Company hopes that relationships with employees are long-term and mutually rewarding. However, all employment relationships with Larson Manufacturing Company are on an at-will basis. An employee at any time may terminate his or her employment, and the Company has the right to terminate the employment relationship at any time for any reason not expressly prohibited by law.

RETIREMENT Employees who plan to retire are encouraged to provide the Company with as much notice as possible. To assist employees in the retirement planning process, please contact your Department Leadership Team.

RESIGNATIONS It is desirable that employees who plan to resign should report their intentions to their Department Leadership Team two weeks prior to their last day of work. Being absent without notification for three consecutive scheduled workdays will be considered a voluntary resignation. Failure to report to work upon the conclusion of a leave of absence also will be considered a self-resignation. Employees will receive their final paycheck on the next regularly scheduled payroll date unless otherwise required by applicable law. Employees will be required to return all Company property upon their last date of employment.

LAYOFF Larson Manufacturing does everything possible to ensure the financial health and viability of the organization. If a layoff or reduction in workforce should occur, Larson will comply with all applicable state and federal regulations. Any recalls of laid off employees will be based on business needs.

TERMINATIONS Larson Manufacturing may end the employment relationship with an employee for any lawful reason. Larson will adhere to all applicable state and federal laws with regard to ending employment relationships.


EXIT INTERVIEWS Larson Manufacturing normally conducts Exit Interviews. The purpose of this interview is to provide employees with an opportunity to discuss their job-related experiences and to provide feedback to the Company to help improve the overall work environment. Exit Interview forms will be placed in the employee’s confidential personnel file and will be reviewed only by the appropriate Management personnel.

General Information

APPEARANCE / DRESS CODE (Amended 6/15/2011) LARSON values its professional image as that image lines up in importance with our overall quality and performance. Employees are expected to present a “LARSON” image when representing Larson Manufacturing Company. Employees should dress appropriately for our type of business and for their position within the Company. The Company will provide gloves, safety glasses, earplugs, and other items directly related to the job. Protective aprons are optional and available in certain areas. In addition, certain requirements must be observed. Clothing should not be provocative, tight-fitting or revealing. Clothing should not be hazardous to an employee’s safety (no strings, ties, fabrics hanging that can get caught in machinery, etc.). The LARSON Appearance/Dress Code Policy offers examples of proper attire for both office and production positions at LARSON. Office employees who are scheduled to work during holidays and Saturdays may follow the dress code guidelines for casual days. Fridays are considered casual days at LARSON. If a casual day needs to be canceled due to a customer visit or other event, employees generally are notified in advance. Examples of appropriate dress include, but are not limited to, the following: OFFICE ATTIRE (Monday - Thursday; Fridays are Casual Days) Acceptable: • Blouses, Shirts. • Dresses, Skirts, Mid-Length Split Skirts or Skorts. • Suits, Slacks. • Dress Sandals with Limited Amount of Toes Showing and a Back Strap.


Unacceptable: • Any Clothing with Offensive Logos/Words. • Tank Tops, Halter Tops, T-Shirts. • Sweatshirts. • Mini-Skirts, Strapless or Spaghetti Strap Dresses. • Tennis Shoes, Flip Flops. • Blue Jeans, Sweat Pants, Shorts, Spandex or Other Form-Fitting Pants. • Oversized Clothing. Acceptable (Friday Casual Days, Saturdays and Holidays): • Sweatshirts and T-Shirts. • Blue Jeans. • Bib Overalls. • Tennis and Athletic Shoes. PRODUCTION ATTIRE Acceptable: • Shorts – No shorter than 4” above knee • Jeans • T-Shirts/Tank Tops • Tennis Shoes or Closed Shoes (No Open Toed and/or Open Backed Shoes) • Sweatpants • Sweatshirts • Fleeces Unacceptable: • Any Clothing with Offensive Logos/Wording • Spaghetti Strap Tops, Provocative, Tight-Fitting or Revealing Clothing • Dangling Jewelry • Skirts • Heels (3” or More) • Sandals, Flip Flops, Open Backed or Open Toe Shoes • Oversized Clothing that could get caught in equipment A professional appearance is especially important for those who come into contact with visitors or customers. Please remember that people do judge us as an organization, based in part, on our appearance. Employees who appear for work inappropriately dressed may be sent home and directed to return to work in proper attire. See attendance policy for guidelines on absences from work. Employees who have transferred or have been reassigned to alternate departments or have been selected for temporary positions which are customer sensitive areas (such as display


sets or installers) are subject to the guidelines of physical appearance recommendations for those departments. COMPANY BULLETIN BOARDS All employees are responsible to review Company bulletin boards for important information, such as official notices, job opportunities, Larson sponsored events, and other important information. DONATIONS The Larson Foundation As part of the Company philosophy, Larson Manufacturing believes in charitable giving within the community. In 1990, The Larson Foundation was created to handle the numerous requests for donations received by the Company.

The main emphasis of grants to be awarded will be to fulfill fundamental basic human needs, such as food, clothing, shelter, and education. Funding is granted only to non-profit organizations in the State of South Dakota with 501(c)(3) status. For requests in other locations, please refer to the Employee Matching Gifts Program below. Matching Funds for Employee Contributions Larson Manufacturing wants to encourage all employees to support their communities and to spread charitable giving. Therefore, Larson has approved a list of charitable organizations in which the Larson Foundation will offer matching funds for employee contributions. Please contact the receptionists for an application and guidelines. United Way Larson Manufacturing is a strong supporter of the United Way. Larson gives each employee at every location the opportunity to participate in the United Way Annual Fundraising Campaign. Habitat for Humanity Larson Manufacturing is also a strong supporter of Habitat for Humanity, an organization that builds homes for those in need. The Company donates storm doors through Habitat for Humanity’s Gifts-In-Kind Program. COMMUNITY SERVICE POLICY Larson encourages employees to fulfill their responsibility as a volunteer in community support activities. Employees participating in these activities may request unpaid time relating to the duties associated with being a volunteer. Employees are required to notify their Department Leadership Team as soon as possible so that they may make arrangements for the employee’s absence. Approval is based upon business needs and the nature of the community service.


Definition of Community Service Any work performed or time given for organizations within the community in which an employee has volunteered their assistance and has not been appointed by the Company for participation.

EMPLOYEE ACTIVITIES COMMITTEE The Employee Activities Committee (EAC) is responsible for planning Company-sponsored events. Some of these events include the annual holiday party, Company picnic, benefits and fundraisers. The committee consists of volunteer members from various departments. For more information, please contact your Department Leadership Team. EMPLOYEE BREAKS Each workday, employees generally are provided with rest periods and one meal period. To the extent possible, rest periods will be provided in the middle of work periods. Since rest time is counted and paid as time worked, the Company reserves the right to call employees back to work prior to the end of the rest period. Employees are, however, relieved of all active responsibilities and restrictions during meal periods and will not be compensated for that time. EXCESS EQUIPMENT OR MATERIALS On occasion, Larson Manufacturing has materials and/or equipment that are in excess, obsolete or damaged. Larson, at times, will offer these items to employees according to the approved policy of the location at which they reside. The Plant Manager of that facility administers the policy and all items will be disposed of in accordance with that policy. Absolutely no materials and/or equipment will be purchased, taken or removed from Company property without proper authorization according to the location policy. Violation of the approved policies will be handled as a theft of Company property. Each location policy will be approved by the Senior Management Team and available through the Human Development Department.

PERSONNEL FILES Larson Manufacturing makes every effort to protect employees’ privacy rights and interests and to prevent inappropriate or unnecessary disclosures of information from any employee’s file or record. All (original) records are filed in the Employee Corporate Personnel File in Brookings. All medical information relating to an employee is kept in the separate Medical Records file. Access to both of these files is limited. Personnel files are considered Company records and are the property of Larson Manufacturing. Generally, the Department Leadership Team and selected Management


Personnel of Larson who have a legitimate reason to review information in a file are allowed to do so for internal employment practices. Routine or ordinary internal disclosure for employment practices may include, but are not limited to, performance reviews, promotion and transfer considerations, and disciplinary investigations. If an active employee would like to review their own file, he/she should contact the Human Development Department at their site location. With reasonable advance notice, an employee’s own personnel file may be reviewed in the presence of an individual appointed by Larson. Larson retains documents in accordance with record retention requirements under applicable federal and state law. RECORDS All books, time cards, expense reports, accounts, records, contract reports, and financial reports will be maintained in an accurate manner. Falsifying of records is prohibited.


CHAPTER 4

For Your Safety and Health

LARSON COMMITMENT TO SAFETY AND GENERAL HEALTH Larson Manufacturing is committed to all employees in assisting them in leading a healthy lifestyle. Support of Safety in the workplace and General Health are two components of this commitment. SAFETY COMMITMENT Larson Manufacturing’s ongoing commitment to Safety provides:

• Safe working conditions for all employees. • Complete instructions with training covering safe working methods. • Special equipment required to protect employees against particular hazards. • Opportunities for reporting hazardous situations immediately. • Plan of action to address and fix hazardous situations immediately. • Many safety programs with annual and refresher training. • Continuous improvement process—Lean Manufacturing and 5 S. • Corrective action to address concerns such as harassment, drugs and alcohol. • Visitor, vendor and contractor policy. • Encouragement programs. • Safety and Health Program.

GENERAL HEALTH COMMITMENT Larson Manufacturing’s ongoing commitment to General Health provides:

• Access to a fully outfitted recreation center or reimbursement of a portion of the fees paid for access to an exercise facility.

• Annual health assessments. • Professional leadership and education in areas such as living with challenging health

conditions, weight control, exercise and stretching. • Ongoing employee educational programs. • Time off (see time off section for details). • Comprehensive benefit package (see benefits section for details). • Employee participation programs (profit sharing and bonus programs).


• Established committees to promote the employee’s well-being: Safety, Ergonomic, First Responder, and Employee Activities Committee (EAC).

• Matching funds for community supported activities. • Support of community involvement.

SAFETY RESPONSIBILITIES AND EMPLOYEE INVOLVEMENT The goal of Larson Manufacturing is to be the best in terms of safety and we strive for this everyday with the help of all employees. Safety is a condition of employment. Employees are expected to observe all applicable safety requirements, to use safety equipment provided, to practice safety at all times, and to report immediately any unsafe or hazardous conditions to the Department Leadership Team. Training and information in regard to Occupational Safety and Health Administration (OSHA) required programs and Larson Manufacturing required programs is normally provided to employees upon initial employment. Employees are also required to participate in training programs annually and as needed. Employee involvement in safety is how we will accomplish our goal of being the best in safety. Larson Manufacturing encourages employees to actively participate in safety-related committees and activities, help write and present training programs, and participate in safety inspections. Through participation in hazard recognition training, employees are able to recognize hazards and help eliminate hazardous situations. Employees must immediately report any unsafe conditions to their Department Leadership Team. If an employee has ideas, concerns, or suggestions for improved safety in the workplace, the employee should discuss them with their Department Leadership Team. Employees will be asked to participate in teams that help eliminate hazardous situations and to provide feedback as to how the situation was handled. Employees who violate safety standards or who cause hazardous or dangerous situations are subject to corrective action, which can include termination of employment. The Safety Committee assists with implementing, administering, monitoring, and evaluating the Safety and Health Program. The committee discusses safety issues and conducts safety and housekeeping inspections. This committee is trained in hazard recognition, participates in training sessions, and provides information to employees about workplace safety and health. OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION (OSHA ) AND VOLUNTARY PROTECTION PROGRAM (VPP) Larson Manufacturing believes that working with OSHA to help improve our Safety and Health Program is one way to provide a safe environment at work and to give employees the knowledge necessary to “be safe” outside of work. Through Larson’s voluntary participation in a program called VPP—Voluntary Protection Program—we can provide the safest working environment possible for employees. The Voluntary Protection Program is an OSHA cooperative program where OSHA, Management and employees work together to establish an effective worksite-based Safety and Health Program.


Employees are expected to observe the employee section of OSHA’s General Duty Clause—all employees are expected to comply with all occupational safety and health standards. Employees are also expected to observe all applicable General Industry Regulations established by OSHA. It is a job requirement that employees help detect and eliminate unsafe conditions or acts. Employees who do not comply with the General Duty Clause, General Industry Regulations or fail to follow Safety Procedures, are subject to corrective action, which can include termination of employment. WORK-RELATED INJURIES, ILLNESSES, ACCIDENTS AND NEA R-MISS INCIDENTS Injuries, illnesses, accidents and near-miss incidents occurring as a result of the employee’s employment must be reported to the employee’s Department Leadership Team immediately or if circumstances necessitate, within 24 hours from the time of the incident. No matter how minor an on-the-job incident may appear, it must be reported immediately. Larson Manufacturing will not tolerate non-reporting/under-reporting. Employees must notify the appropriate person from their Department Leadership Team prior to seeking any medical treatment for a work-related injury or illness. Should treatment be necessary after work hours, employees are to notify their Department Leadership Team prior to treatment, unless it is an emergency. Please refer to the Benefits section (Workers’ Compensation Insurance). Larson Manufacturing, with the assistance of employees, will normally investigate all work- related injuries, illnesses, accidents and near-miss incidents. PERSONAL PROTECTIVE EQUIPMENT (PPE) Larson Manufacturing will provide Personal Protective Equipment (PPE) to employees when necessary. An assessment of the workplace will be done to ensure that the correct PPE is being used. Employees will be trained initially, annually, and as needed on what PPE is required at Larson Manufacturing and how to use the PPE. Employees will also be given the opportunity to wear optional PPE, depending on the job they are performing. Employees are expected to wear required PPE correctly and participate in all PPE training programs. SECURITY Within certain secured areas, Larson employees are required to wear their security badge at all times. Employees are required to wear their security badge, or provide their Larson Manufacturing identification number, upon entering the Larson Recreation Center in Brookings. These badges will be issued to all employees and badges should be worn where all staff at Larson Manufacturing can view them easily. If an employee needs a new badge, they need to contact their Department Leadership Team immediately. Larson Manufacturing has installed video cameras in public areas and at Company entrances. Video will be used primarily for security measures. Larson Manufacturing is committed to developing good lines of communication and prohibits secret recordings of conversations in the work areas and on Larson Manufacturing property. Instead, Larson Manufacturing encourages open communication between employees, customers and visitors.


Larson Manufacturing may retain security personnel to patrol the facilities during hours when the plant is closed and during evening shift hours. It is their primary responsibility to protect Larson Manufacturing employees and property. Employees are required to cooperate with security personnel and to report security issues to their Department Leadership Team. Larson Manufacturing reserves the right to inspect all property at random for any items that may jeopardize the security of Larson Manufacturing or its employees. Visitors, Vendors and Contractors are not allowed in any Larson Manufacturing facility without permission from Larson Manufacturing. When a Visitor, Vendor or Contractor comes to Larson Manufacturing, the following policy must be adhered to:

1. Visitors, Vendors and Contractors must report to the Visitor Entrance. 2. Visitors, Vendors and Contractors must comply with Larson Manufacturing Safety Rules

while at Larson Manufacturing (safety glasses, hearing protection, evacuation and shelter procedures, remain in approved aisle ways, etc.).

3. Visitors, Vendors and Contractors must be escorted at all times by the person they are visiting, unless approved in advance.

4. Visitors, Vendors and Contractors are required to sign a non-disclosure agreement.

DISASTER PLANNING AND RECOVERY MANAGEMENT INFORMATI ON Larson Manufacturing has developed a plan that may be used in the event a disaster occurs. Examples of disasters might include natural disasters (tornado, flood, etc.), HAZMAT disasters (chemical, toxic, etc.), terrorism disasters (personal safety threats, acts of violence, etc.), and operations disasters (computer/phone system failures, etc.). First and foremost, Larson Manufacturing's primary objective is to provide for the safety of its employees. Larson Manufacturing will then work towards minimizing losses, preserving facilities, equipment, and data. As part of the Disaster Recovery Plan, Larson Manufacturing will provide a system of communications throughout an event with employees, customers, and others as necessary. Should an unfortunate event occur, please make contact with the Larson Manufacturing Information Line @ 1-866-282-6641 or mybenergy.com for work-related information and updates. Public information may be provided to local radio stations, television stations and newspapers, as the situation requires. MISCELLANEOUS SAFETY AND HEALTH If an employee has any questions about the Safety and Health Program or any procedures and policies at Larson Manufacturing, the employee must contact their Department Leadership Team. Larson Manufacturing has policies and procedures pertaining to Safety and Health that are not listed in this section of the Employee Handbook. It is the responsibility of the employee to comply with all policies and procedures related to employment at Larson Manufacturing. Should employees have specific questions, they are encouraged to discuss them in detail with their Department Leadership Team.


CHAPTER 5

Benefits and Compensation

In addition to base pay, Larson Manufacturing Company has excellent benefit programs. These include Paid Time Off (P.T.O.), bonus, retirement, and health programs. A Total Compensation Package includes both Benefits and Compensation. Within this section you will learn about your Total Compensation Package at Larson Manufacturing.

Benefits

This section is an overview of some of our benefit programs. Our benefits are described more thoroughly in each of the Summary Plan Description booklets. Please refer to them for any specific questions on these programs. The master contract/plan document shall govern in all cases. Larson Manufacturing Company reserves the right to amend or discontinue any of these programs or to require increases or decreases in employee premium contributions toward any benefits at the Company’s discretion. MEDICAL COVERAGE Larson Manufacturing offers medical insurance coverage to eligible employees and their dependents the first day following 60 days of employment. This is one of the Company’s most costly benefits and is in place to help pay for medical costs for you and your family. When reviewing the Larson Employee Healthcare Plan, take note that not all illnesses or injuries are covered by the Plan. In some cases, there are annual or lifetime limits set on specific services. It is not our intention to include all limits or exclusions in this section. Make sure to refer to the plan’s Summary Plan Description and Schedule of Benefits to identify these exclusions and/or limitations. When in doubt on coverage, you should contact the Benefits Department for clarification. Refer to the Summary Plan Description for more information located on the Larson Benefit Website or request a Summary Plan Description from the Benefits Department.


The following benefits are incorporated in the medical plan:

Prescription Coverage Larson offers eligible employees and their dependents the convenience of a Prescription Drug Card. Refer to the Summary Plan Description located on the Larson Benefit Website.

Dental Coverage Larson offers eligible employees and their dependents dental insurance. Refer to the Summary Plan Description located on the Larson Benefit Website.

Vision Coverage (Employee Only) Larson offers eligible employees vision insurance. Refer to the Summary Plan Description for more information located on the Larson Benefit Website. BENEFITS CONTINUATION (COBRA) The Federal Consolidated Omnibus Budget Reconciliation Act (COBRA) gives employees and their qualified beneficiaries the opportunity to continue health insurance coverage under Larson's health plan when a "qualifying event" would normally result in the loss of coverage. Some common qualifying events are resignation, retirement, termination of employment (for reasons other than gross misconduct), or death of an employee; a reduction in an employee's hours or a leave of absence; an employee's divorce or legal separation; and a dependent child no longer meeting eligibility requirements. Under COBRA, the employee, eligible dependent, or beneficiary pays for coverage at Larson's COBRA Rate. These rates are reevaluated yearly based on claims experience. Eligible employees are provided with a written notice describing rights granted under COBRA when the employee becomes eligible for the COBRA plan. The notice contains important information about the employee's rights and obligations. PRE-TAX DEDUCTIONS AND FLEXIBLE SPENDING ACCOUNTS Larson employees pay for their insurance premiums with "before-tax" dollars to minimize the federal and state tax they pay on their wages. If employees elect to use a Flexible Spending Account for unreimbursed medical care and/or dependent care, payroll deductions are made using "before-tax" dollars. For additional information, contact your Department Leadership Team or the Larson Benefit Website for complete details.

LIFE INSURANCE/DEPENDENT LIFE INSURANCE Larson Manufacturing provides life insurance to eligible employees and their dependents the first day of the month following 60 days of employment. Employees also receive accidental death and dismemberment insurance with their life insurance. For additional


information, contact your Department Leadership Team or the Larson Benefit Website for complete details. PROFIT SHARING Larson Manufacturing has an ERISA-qualified, Company-funded Profit Sharing Plan. Employees qualify for the Plan after one year of employment, and they enter the Plan on the following July 1st or January 1st. A qualifying year of employment for profit sharing purposes is any calendar year in which an employee works at least 1,000 hours. The vested balance in the Plan is available to the employee if he/she terminates employment, but the employee may have to wait between 6 and 12 months before the amount can be paid. If an employee leaves Larson Manufacturing after reaching age 55, he/she will receive the balance without penalty. The vesting schedule and complete details are located on the Larson Benefit Website or you may request a copy of the Summary Plan Description through the Benefits Department.

401(K) PLAN All Larson Manufacturing employees are eligible to participate in a 401(k) Plan after 60 days of employment. Employees can defer from 1% to 90% of their earnings. However, an Internal Revenue Service (IRS) annual maximum dollar limit (adjusted annually for inflation) will apply. For complete details see the retirement section located on the Larson Benefit Website or you may request a copy of the Summary Plan Description through the Benefits Department. If you have an existing qualified retirement plan account with a prior employer or an eligible IRA, you may transfer or roll over the account into the Larson Plan. By doing so, you avoid any income-tax liability on the amount rolled over.

SHORT-TERM DISABILITY (STD) Larson Manufacturing provides Short-Term Disability benefits to eligible employees the first day of the month following one year of employment. If an eligible employee is totally disabled and cannot work for 8 consecutive days due to an injury or illness that is not work related, he/she will receive 66.67% of his/her base pay as a continuation of pay. Maximum benefit period is 180 days for the same illness or injury. Refer to the Short-Term Disability Policy for more information located on the Larson Benefit Website.

LONG-TERM DISABILITY (LTD) Employees become eligible for Long-term Disability (LTD) insurance the first day of the month following one year of employment. LTD benefits are available for eligible employees whose disability continues beyond 180 continuous days. Long-Term Disability benefits equal 66.67% of the disabled employee's base monthly earnings.


Refer to the Long-Term Disability Insurance Plan for more information located on the Larson Benefit Website. WELLNESS AND HEALTHY LIFESTYLES PROGRAM Larson strives to be proactive in many areas, including employee’s health. Within the Healthy Lifestyles Program the Company offers health screenings, health assessments, incentives to participate, programs to help achieve a healthy lifestyle, periodic campaigns to challenge participants and a monthly newsletter to communicate progress and events. Along with this, Larson Manufacturing allows a reimbursement for memberships offering aerobic activities to qualified employees the first day following 60 days of employment. Brookings employees are eligible to use the Brookings on-site Recreation Facility. See the Larson Benefits Website for complete details. WORKERS’ COMPENSATION INSURANCE Larson provides Workers' Compensation Insurance for qualified employees who sustain a work-related injury or illness in the course of or related to their employment. Larson complies with all applicable state guidelines. Employees who sustain work-related injuries or illnesses must inform their Department Leadership Team immediately. No matter how minor an on-the-job injury or illness may appear, it is important that it be reported immediately. If an employee has medical restrictions, the employee is expected to comply with those restrictions at all times (both on the job and off the job). For more information, please refer to the Disability Management Program on the Larson Benefits Website. All work-related injuries or illnesses that qualify as a serious health condition under the Family and Medical Leave Act will count toward an employee’s Family and Medical Leave entitlement, if the employee is otherwise eligible for such leave. COMPANY BONUS PROGRAMS (BASED ON COMPANY PERFORMANCE) Bonus programs at Larson are defined with specific guidelines that reflect qualifications and program rewards. These plans are all subject to the successful performance of Larson and may be modified or discontinued at the discretion of the Company. EMPLOYEE CONTINUING EDUCATION Larson Manufacturing has designed an Employee Continuing Education Refund Plan for qualified employees to enhance and grow skills and knowledge in areas that will benefit the Company and its employees. For additional information, contact your Department Leadership Team or the Larson Benefit Website for complete details.


LARSON MEMORIAL SCHOLARSHIP PROGRAM The Larson Memorial Scholarship Program was established to encourage the children of Larson employees to continue their education after high school. The program provides renewable scholarship awards to assist with the tuition and expense of pursuing post-high school education in undergraduate courses at accredited colleges, universities or other approved institutions of higher learning including technical and vocational schools. For additional information, contact your Department Leadership Team or the Larson Benefit Website for complete details.

EMPLOYEE PURCHASE PROGRAM All employees are eligible to receive a discount from the list price on all Larson merchandise. Purchases must be for personal use or for immediate family (i.e. father, mother, brother, sister, children) and cannot be resold. All purchases will be for new product only. For additional information, contact your Department Leadership Team or the Larson Benefit Website for complete details.

Compensation

This section is an overview of Larson pay policies. The Larson Manufacturing compensation strategy is to maintain a competitive pay and benefit program that also provides a means for employees to share in the success of the Company.

PAY Hourly employees are paid bi-weekly every other Friday. Salaried employees are paid monthly on the last working day of the month. Each paycheck will include earnings for all work performed through the end of the previous payroll period. To ensure timely payment, all employees must notify their Department Leadership Team and the Payroll Department of any address or phone number changes. Employees generally will be paid by direct deposit into their personal bank accounts. Employees must notify payroll immediately in the event of a change in their direct deposit account. Late reporting of an account change could delay receipt of pay. Employees may receive an itemized statement of wages when Larson makes direct deposits. Direct deposit forms are available through your Department Leadership Team or from the Payroll Department. Required testing of a new bank account could interrupt direct deposits for a payroll period. If this occurs, the employee would receive a real check until resumed. The above refers to Larson Manufacturing’s General Pay Policy. In all instances, Larson Manufacturing will conform to applicable state statutes.


SALARIED EXEMPT EMPLOYEES Employees who are exempt from being paid overtime wages are paid a salary. These exempt employees paid on a salary basis will not have deductions made from their salary except as allowed by law; i.e., an exempt employee who has exhausted available paid absence time may be subject to a reduction in pay for full-day absences only. Specifically, deductions will only be allowed in the following cases:

1. Absences for full work weeks when an employee performs no work. 2. Absences in the initial or final week of employment. 3. Full-day absences for personal reasons. 4. Full-day absences due to sickness or disability (including work-related accidents).

This includes absences occurring prior to the employee becoming eligible for P.T.O. under Larson policies or after the employee has exhausted the leave allowance.

5. Full-day absences caused by corrective action suspensions imposed for infractions of safety rules of major significance.

6. Full-day absences caused by corrective action suspensions imposed for infractions of written workplace conduct rules.

7. Full or partial-day absences taken as Family and Medical Leave. Exempt employees who are absent for a full work week and perform no work duties due to military leave will receive no pay. Employees who are absent for a portion of the week will be paid their salary; however, their salary will be reduced by the amount the employee receives for performing military service. Please refer to the Jury Duty Leave and Witness Duty Leave policies for information regarding the manner in which salaried exempt employees are paid while serving Jury Duty and Witness Duty. Questions or complaints about improper deductions should be directed to the Human Development Department to ensure compliance with the employee's exempt status. If it is determined that an improper deduction has been taken, the Company will make full reimbursement to the affected exempt employee and will make a good faith commitment to comply in the future with the applicable laws and terms of this policy so that improper deductions will not occur in the future.

HOLIDAYS Full-time non-exempt hourly employees are eligible for holiday pay the first day following 60 days of employment. Salaried exempt employees are eligible for holiday pay immediately upon employment. Paid holidays are as follows:

• New Year’s Day • Martin Luther King Jr. Day • Good Friday • Memorial Day • Independence Day

• Labor Day • Thanksgiving Day • Day after Thanksgiving • Christmas Eve • Christmas Day


Holiday pay will be paid at eight (8) hours per holiday for all full-time non-exempt hourly employees, and the work week schedule may be modified. Salaried exempt employees will receive the same salary for a holiday week that they would have received had the holiday not occurred. If a recognized holiday falls during an eligible employee’s P.T.O., holiday pay will be provided instead of the P.T.O. benefit that would otherwise have applied. Employees on family leave, personal leave, work comp. leave, maternity/pregnancy leave before and after a holiday will not receive holiday pay. However, employees who work up to the date of a holiday prior to beginning their leave or return from a leave the day after a holiday will be eligible for holiday pay.

SHIFT DIFFERENTIAL PAY Employees who work second or third shift may receive a shift premium. The employee’s Department Leadership Team should be consulted for questions on eligibility and amount.

OVERTIME Overtime compensation is paid to all non-exempt employees in accordance with applicable federal and state wage and hour restrictions. Overtime pay is based on hours worked over 40 hours per week, including paid holidays and approved P.T.O.

TIME KEEPING Employees are expected to accurately record the time they begin and end their work, as well as the beginning and ending time of each meal period. “OFF THE CLOCK” WORK

Larson Manufacturing Company compensates employees for all time worked under applicable law. The Company specifically prohibits employees from working “off the clock.” Any employee who is asked to work “off the clock” should report this conduct to their Department Leadership Team immediately. For definition, "Off the Clock” is defined as performing work without recording the time worked and, therefore, not receiving compensation. If you have questions regarding what is compensable work, please contact your Department Leadership Team or the Human Development Department immediately.

CALL-BACKS A non-exempt employee who has left the facility after completing their regularly scheduled work day or work week, and who is called back for authorized work will be allowed a minimum of one hour pay for the time spent on the job site. If the work requires more than one hour to complete, the employee will be paid for the actual amount


of time they worked. If an employee is called back more than once, the employee will receive the minimum pay for each return. PAY CORRECTIONS Larson takes all reasonable steps to ensure that employees receive the correct amount of pay in each paycheck and that employees are paid promptly on the scheduled payday. Should an error be recognized, please bring the discrepancy to the attention of the Department Leadership Team so a correction can be made on the next regular paycheck if possible. PERSONAL DATA Larson expects employees to keep personal data current and accurate. Employees should immediately notify the Larson Payroll Department if any of the following changes occur:

• Change in Address • Change in Dependent Information • Change in Phone Number • Change in Exemptions

• Change in Marital Status • Change in Direct Deposit Accounts • Change in Beneficiary Information

PAY ADVANCES Neither pay advances nor extensions of credit on unearned wages will be provided to employees. PAY DEDUCTIONS Eligible employees may voluntarily authorize deductions from their paychecks to cover their costs of participation in eligible programs. Signed documentation requiring the deduction must be submitted to the Payroll Department. Pay deductions that are court ordered do not require a signed document. Employees should contact their Department Leadership Team with any questions. Upon termination of employment Larson will deduct any appropriate amounts for equipment not returned or pay not earned on your final paycheck to the extent allowed by applicable state and federal law. REIMBURSEMENTS OF BUSINESS EXPENSES Larson will reimburse employees for reasonable business expenses incurred while on authorized assignments away from the normal work location. Employees should contact their Department Leadership Team for details regarding the Company Expense Guidelines.

December 2013 Chapter 6 Page 1 of 13

CHAPTER 6

Time Off

Larson Manufacturing views attendance and punctuality as an essential function of all positions throughout the Company. This section addresses time away from work.

TIME OFF

Employees are encouraged to plan their absences well in advance. Absences will require full-time regular employees to use Unpaid Time Off (U.T.O.) and/or Paid Time Off (P.T.O). A few exceptions to this are listed under the leave of absence section. Employees are also expected to keep an accurate record of their P.T.O. or U.T.O. account. Contact your Department Leadership Team for information on requesting and approval of time off.

UNPAID TIME OFF (U.T.O.) (Amended 12/11/13)

Upon date of hire, all full-time regular hourly employees will be given a total of 60 hours of U.T.O. and will be given additional U.T.O. hours per the matrix below. U.T.O. must be used in no less than ½ hour increments. It is the responsibility of the employee to manage these hours.

YEARS OF SERVICE TOTAL U.T.O.

HOURS*

60 Days - 1 Year 60 2nd 50

3rd - 5th 18 6th & Above 0

*Unpaid Time Off (U.T.O.) is loaded on start date of Full Time Regular employment and every anniversary date of Full Time Regular employment. The use of U.T.O. will end when you no longer have a balance.

The official record of U.T.O. will be reported by the Department Leadership Team. Employees are expected to track their own U.T.O. as well for their own verification.

PAID TIME OFF (P.T.O.)

All Larson full-time regular hourly employees with 60 days of employment are eligible for P.T.O., which is part of their compensation package. Salaried exempt employees are eligible to accrue P.T.O. immediately upon employment. P.T.O. is an accumulation of several benefits (vacation, sick leave or personal hours, and floater hours) combined into one amount, which is to be used to cover all absences. Hourly employees can use P.T.O. in no less than ½ hour increments. Employees must request P.T.O. through their Department Leadership Team.


P.T.O. Flexibility Larson allows eligible employees flexibility in the use of their P.T.O. P.T.O. can be used for absences, it can be carried over into the following year, it can be paid out both quarterly and year end and in some circumstances can be donated to other employees in need. A P.T.O. program such as this encourages employees to utilize P.T.O. according to their individual needs.

P.T.O. Accrual Rate All full-time regular hourly employees begin to accrue P.T.O. the first payroll following 60 days of employment. The accrual rate advances to the second year level on the first payroll following one year of employment. Employees will begin accruing at the next accrual rate at the start of the calendar year in which he/she will have completed three, six, ten or fifteen years of service. P.T.O. accrual rate is determined by years of service as shown in the chart below.

Example: John’s service date is 3/14/99. John will have completed six years of service on 3/14/05. On January 1, 2005, John will begin to accrue P.T.O. at 7.08 hours per pay period.

(NOTE: Service dates are not always hire dates. Service is based on time worked and might be adjusted for layoff, seasonal workers, and part-time status. The accrual rate per pay period is contingent upon having 80 eligible hours per pay period; any less than that would result in fewer P.T.O. hours accrued. P.T.O. will not continue to accrue during leave of absences unless using P.T.O.)

P.T.O. ACCRUAL – HOURLY NON-EXEMPT EMPLOYEES (Amend ed 12/11/13) Hourly employees may use P.T.O. in no less than ½ hour increments.

YEARS OF SERVICE TOTAL P.T.O.

HOURS* MAXIMUM P.T.O. ACCRUAL RATE

PER BI-WEEKLY PAY PERIOD

60 Days – 1 Year 42 2.00 Hours

2nd 52 2.00 Hours 3rd – 5th 84 3.23 Hours 6th – 9th 124 4.77 Hours

10th -14th 144 5.54 Hours 15th & Above 164 6.31 Hours

*P.T.O. total includes vacation, sick leave, personal hours and floater hours. P.T.O. ACCRUAL – SALARIED EXEMPT EMPLOYEES

YEARS OF SERVICE TOTAL P.T.O.*

HOURS MAXIMUM ACCRUAL RATE PER MONTHLY PAY PERIOD

Date of Hire - 5th 144 12.00 Hours 6th - 9th 184 15.33 Hours

10th & Above 224 18.67 Hours *P.T.O. total includes vacation, sick leave, personal hours and floater hours.


Sales Salaried Employees The Salaried Exempt P.T.O. matrix above does not apply to Sales employees. Sales employees should contact their Department Leadership Team for details concerning their P.T.O. benefits. Quarterly P.T.O. Flex Plan Hourly employees have the option to receive cash for a portion of their P.T.O. through the first three quarters of the year rather than taking it as time off. Employees can “sell” their P.T.O. each quarter according to the incremental amounts below.

YEARS OF SERVICE QUARTERLY AMOUNTS (1st, 2nd, 3rd Quarters Only)

1st - 2nd 12 Hours 3rd - 5th 16 Hours 6th - 9th 20 Hours

10th & Above 24 Hours Employees must decide by the date specified on the Quarterly Election Form if they wish to be paid out for any of the quarterly amounts listed above. P.T.O. 4th Quarter Flex Plan Hourly employees may elect to have up to 48 hours of accrued, unused P.T.O. paid out in cash at the end of the calendar year. If the employee terminates, he/she will be entitled to payment of accrued P.T.O.

P.T.O. Year End Carry Over Hourly employees may carry over into a new calendar year up to a maximum of 120 hours in their personal P.T.O. bank. Salaried employees may carry over a maximum of 160 hours. All carryover amounts of P.T.O. become part of the employee’s accrued P.T.O. balance for the following year. Any hours in excess of the allowable carryover amount at the end of the calendar year will be forfeited to the extent allowed by applicable law. Payment of Accrued P.T.O. Upon Termination If an employee terminates, he/she will be entitled to payment of their accrued P.T.O. balance. This payment will occur on the employee’s last paycheck.

P.T.O. Donations Larson Manufacturing has a program where hourly employees can donate a portion of their accrued P.T.O. for the use and benefit of another employee with extenuating circumstances requiring them to be absent from work without pay for an extended period of time. Larson Manufacturing will communicate to employees when situations arise in which P.T.O. may be donated. Donated hours must be used for pay only and will not extend other benefits. Contact your Department Leadership Team for more information.


ABSENTEEISM AND CORRECTIVE ACTION Employees are expected to be at their work area and ready to begin work at the start of their shift. If the employee is unable to be at work, they must follow the appropriate department call-in procedure. Approved Time Off Approved absences are those absences that are verbally approved by the Department Leadership Team with proper notice and fall within the allowable limit to be absent. A leave of absence is also an approved absence as explained further in the Leaves of Absence section. P.T.O. or U.T.O. must be available to cover the absence, and it is the employee’s responsibility to ensure they have enough P.T.O. or U.T.O. to cover the absence. Call-Ins Employees must call-in a minimum of 30 minutes in advance of the start of their shift to request time off and leave a phone number where they can be reached if their Department Leadership Team is not available to talk to them directly. If this absence falls within the allowable limit, this would be an approved absence. In the event the absence falls outside the allowable limit, the Department Leadership Team will call the phone number the employee has left on the voice mail only once. The employee is then responsible to report to work within a reasonable period of time and to cover the time missed with appropriate P.T.O. or U.T.O. Merely leaving a message for the Department Leadership Team on voice mail does not guarantee an approved absence will be granted. Personal Absences (P.A.) Hourly employees are allowed three (3) Personal Absences within a rolling 12-month period during which an unapproved absence will be waived provided the following criteria is met: Employees must use the appropriate amount of accrued P.T.O. or U.T.O. to cover the absence. If a personal absence is used on overtime, the employee must have enough accrued P.T.O. or U.T.O available to cover the absence, although hours will not actually be used. Personal absences are tracked in occurrences (one absence regardless of hours missed). Employees are encouraged to call-in within 30 minutes of the start of their shift; however, in emergency cases, the employee is expected to call in as soon as possible or by the end of their shift. Absence After Reporting To Work After reporting to work, an employee who needs to leave for a few hours or for the remaining part of their shift, will receive approved time only if the absence falls within the guidelines of approved time. The employee also could request a personal absence. Otherwise, the absence will be recorded as one unapproved absence.


Allowable % Absent Each Department Leadership Team will manage their respective work areas with a certain allowable number of people absent. Generally, this will be considered 10% of the work force, but due to business demands and the work area, it may vary. Employees are expected to know what that limit is for the area in which they work. When an employee absence falls outside the limit, it will lead to either an unapproved absence or use of a personal absence, unless it meets the guidelines of the Medical Absence Policy below. Medical Absence Policy – (Amended 8/1/08) Employees may request time off from work due to their own unplanned illness or their child’s unplanned illness or medical emergency under the Medical Absence Policy as long as they provide a doctor’s slip immediately upon their return to work. Under this policy, employees must use accrued P.T.O. and/or U.T.O. for the time missed. The allowable % absent rule will then be waived and time missed will be considered an approved absence. Tardiness (Amended 12/1/12) An employee will be considered tardy when he/she is late for work (1 minute to 30 minutes) at the beginning of the shift or late coming back from lunch. No P.T.O. or U.T.O. is charged if the tardy is within 30 minutes of his/her start time. Anything beyond 30 minutes is not a tardy, but an absence. Tardies will be accumulated on a rolling 12-month period and corrective action will be taken when two or more tardies occur within a 30-day period. Example: Employee is tardy on 10/30/06 and on 11/29/06. Because October has 31 days, the tardy on 11/29/06 is not counted as the second tardy; therefore, no warning is issued. Had the employee been tardy on 11/28/06, it would have been considered two tardies within a 30-day period, which would generally result in the following progressive corrective action.

Progressive Corrective Action for Excessive Tardiness 1st Occurrence – 1st Written Warning 2nd Occurrence – 2nd Written Warning 3rd Occurrence – Final Warning (CPC Notification) 4th Occurrence – CPC Review (Up to and Including Termination) (2 Tardies in 30 Days = 1 Occurrence)

Deviations from this corrective action schedule may take place depending upon all the circumstances and at the Company's discretion. Absent Without Notification If the employee does not call or show up for work, this is considered Absent Without Notification. This will be considered an unapproved absence and is considered a violation of Company policy. Being absent without providing notification for three consecutive days is considered a voluntary resignation.


Unapproved Absences (Amended 12/1/12) Unapproved absences are absences from work outside the guidelines for approved time off:

• Absent without accrued P.T.O. or U.T.O. • Amount of people gone in the work area is beyond the allowable limit for the

work area. • Employee did not call 30 minutes in advance of the start of the shift (proper

notice). • Absent without notification (failure to call-in or to report for work). • Failure to work scheduled mandatory overtime.

Unapproved absences will be accumulated on a rolling 12-month period. If an employee has the following unapproved absences within a rolling 12-month period, the employee generally will be subject to the following progressive corrective action:

Progressive Corrective Action for Unapproved Absences

1 Unapproved Absence ................1st Written Warning 2 Unapproved Absences...............2nd Written Warning 3 Unapproved Absences ..............Final Warning (CPC Notification) 4 Unapproved Absences ..............CPC Review (Up to and Including Termination) Repetitive Corrective Action: Employees who reach the Final Warning level for the second time are expected not to reach this level again for a period of 18 months. Failure to comply with this expectation will lead to further disciplinary action, up to and including termination of the employee. The Company reserves the right to deviate from the above schedule of progressive corrective action at the Company's discretion depending upon the individual circumstances. Mandatory Overtime An absence or failure to work when scheduled for mandatory overtime will result in either a charge of a personal absence or an unapproved absence, but no P.T.O. or U.T.O. will be charged. Emergency Closings At times, emergencies such as severe weather, fires, or power failures can disrupt Company operations. Due to business needs, Larson facilities will remain open unless announced over the local radio stations. Employees should exercise good judgment during hazardous conditions, but they are expected to be at work or to cover their time under the attendance policy. For Larson site locations that may experience inclement weather, the Company will post the procedure for that location. For more information, please contact your Department Leadership Team.


LEAVES OF ABSENCE A leave of absence is an approved absence. Arrangements for a leave of absence must be made in advance except in emergencies. Types of leaves of absences include:

• Family and Medical Leave (FMLA) • Maternity/Pregnancy Leave • Short-Term Disability Leave • Long-Term Disability Leave • Military Leave • Bereavement Leave • Jury Duty Leave • Witness Duty Leave

Employees should notify their Department Leadership Team of the need for a leave of absence with appropriate documentation. FAMILY AND MEDICAL LEAVE (FMLA) Under the Family and Medical Leave Act of 1993 (“FMLA”), employees may be eligible for up to 12 weeks of unpaid leave. To be eligible for this leave, employee must: (1) have been employed by Larson for at least 12 months; (2) have worked at least 1,250 hours during the 12 months immediately preceding commencement of the leave; and (3) be employed at a location where 50 or more employees are employed or a location where there are 50 or more employees within 75 miles of your location. This leave consists of up to 12 weeks of unpaid leave during a 12-month period for any of the following reasons:

• The birth of a child and in order to care for such a child. • To care for a child after placement for adoption or foster care. • To care for a spouse, child, or parent with a serious health condition. • The employee’s serious health condition, including work-related injuries or

illnesses that qualify as a serious health condition under the FMLA.

The 12-month period is determined on a “rolling” basis, measured backward from the date an employee uses any FMLA leave. Under this method, each time an employee takes FMLA leave, the remaining leave entitlement would be any balance of the 12 weeks which has not been used during the immediately preceding 12 months.

For example, if an employee used eight weeks beginning February 1, 2006 and needed FMLA leave on December 1, 2006, the Company would look back 12 months from December 1, 2006 to determine how many of the 12 weeks were already used. In this case, the employee would have used eight weeks and, therefore, would have four remaining weeks to use as of December 1, 2006.


In the case of a foreseeable leave, an employee must provide 30 days advance notice, if possible. If 30 days notice is not possible, notice must be provided as soon as possible. If it is necessary for an employee to take leave to obtain planned medical treatment, the employee must make a reasonable effort to schedule the treatment so it does not disrupt Larson operations. If FMLA is requested for qualified doctor appointments, these appointments must be scheduled around the employee’s work schedule whenever possible. If unable to do so, Larson will allow FMLA for the duration of the appointment and “reasonable” travel time to and from the appointment. In some cases, the employee may need leave on only an intermittent basis. In those cases, the employee may be assigned to an alternative position that better accommodates their intermittent absences. For all FMLA leave due to the employee’s serious health condition or the serious health condition of a family member, the employee will be required to provide appropriate medical certification within 15 calendar days from when the medical certification was requested. This certification must include complete information such as the date the serious health condition commenced, the probable duration of the condition, and in the case of the employee’s own serious health condition, a statement from a physician that the employee is unable to perform his/her job duties. Once an employee is able to return to work, a return to work slip will be required. If the leave is to care for a family member, the physician must indicate that the employee is needed to care for the family member and provide an estimate of the time the employee will be needed. Failure to provide proper medical certification within the 15 calendar day requirement could result in denial of FMLA, wherein the employee will be required to cover his/her absence under the Larson attendance guidelines. Employees who suffer a work-related injury or illness that qualifies as a serious health condition under the FMLA, and are otherwise eligible for FMLA leave, will be granted FMLA leave. In other words, workers’ compensation leave and FMLA leave will run concurrently. Upon return from leave, Larson will reinstate the employee to their former position or to an equivalent position as required by the FMLA. Certain highly paid employees may not be reinstated. Those employees will be notified if it is the Company's decision to deny reinstatement. If the leave has already begun at the time the employee receives this notice, the employee has the option of deciding whether or not to return to work.


Employee’s seniority and benefits will not continue to accrue during any unpaid period of their leave. Any group insurance the employee had prior to leave will continue during the term of their leave on the same basis as if the employee was not absent from work. Please note that if an employee fails to return from their leave, Larson may recover the cost of any employee premiums paid on their behalf to continue insurance coverage. It is impossible to cover all aspects of family and medical leave in this Handbook. Therefore, if an employee determines that they will need to take family and medical leave, they should contact the Human Development Department for additional details. Also, the Company will comply with all applicable state leave laws. Family and Medical Leave and P.T.O. (Amended 12/11/13) If FMLA leave is required for reasons other than an employee’s own disability, all full-time regular employees will be required to use their accrued P.T.O. according to the requirements below.

YEARS OF SERVICE USE P.T.O. HOURS

DOWN TO

1st – 2nd 40 3rd – 5th 60 6th – 9th 80

10th – Above 100 MATERNITY/PREGNANCY LEAVE (Amended 1/1/11) Larson provides an unpaid Maternity/Pregnancy Leave for any employee who is unable to work due to pregnancy, childbirth or related medical conditions and does not yet qualify for leave under the Family and Medical Leave Act or Larson’s Short-Term Disability Policy. This policy covers both female and male employees. Employees become eligible for this leave upon their hire date. Female employees requesting this leave are required to provide medical certification within 15 calendar days stating that they are unable to work due to pregnancy, childbirth or related medical conditions, including prenatal care. Generally, the maximum period of leave is six (6) weeks. Employees who are unable to return to work after six (6) weeks due to continuing disability must request an extension of the leave from the Human Development Department. Extension of the leave is not guaranteed. The Company will consider various factors in determining whether the extension can be granted. Male employees are required to provide a document within 15 calendar days of their child’s birth stating the birth date of their child and request a specified consecutive period of time needed for their absence, which is to be approved by the Department Head and Human Development Department. Qualifying absences under


this leave are considered approved absences. If any applicable state law provides more generous leave than provided under this policy, the Company will comply with state law. SHORT-TERM DISABILITY LEAVE (Amended 12/11/13) Larson Manufacturing provides income protection during a qualified employee’s injury or extended illness. Below is a summary of Larson’s Short-Term Disability Policy. See the Summary Plan Description for more detailed information on this benefit. Eligibility: Short-Term Disability (STD) is provided at no cost to eligible employees and will provide a percentage of income for up to 180 days if an eligible employee cannot work due to illness, injury, or pregnancy. After the eighth consecutive day of a non-work related sickness or injury, the policy pays a portion of the employee’s pay for up to 180 days. The first eight days are considered the elimination period. During this elimination period, employees must use accrued P.T.O. that is in excess of the hours listed below for any regularly scheduled workdays.

YEARS OF SERVICE USE P.T.O. HOURS IN EXCESS OF

THESE AMOUNTS

1st – 2nd 40 3rd – 5th 60 6th – 9th 80

10th - Above 100

How The Plan Works: Short-Term Disability benefits are available for eligible employees in the event of any non-work related disability. Short-Term Disability benefits will begin on the ninth calendar day the employee is absent from work due to a disability. The Short-Term Disability policy pays 66.67% of employee’s base pay (base rate X 40 hours per week) for up to 180 days. Employee must remain unable to work due to a disability as verified by their physician in order to continue receiving Short-Term Disability payments. Once an employee is able to return to work, a return to work slip will be required. A Family and Medical Leave must be approved and will run concurrent with all medical leaves, if applicable. Once an employee has been disabled for 180 days (elimination period included), the employee will have to file with the Long-Term Disability (LTD) insurance carrier to continue income. For this Short-Term Disability policy, base pay does not include bonuses, overtime pay, or any other benefits or compensation. This policy also will pay for a partial disability, which would require an employee to be gone for a portion of the day or week. The employee would need to go through the same elimination period as a totally disabled claim. This will protect an employee’s income up


to 80% of normal base earnings. Example: If the employee is able to work 32 hours in a 40-hour week, no disability will be paid. If the employee is able to work only 20 hours in a 40-hour week, the employee would receive 66.67% of their base pay for 20 hours. Benefits While on Short-Term Disability: P.T.O. will not continue to accrue during the period of leave. If a holiday occurs during an employee’s elimination period, the employee will receive holiday pay. If an employee is currently receiving disability benefits before and after the holiday, the employee will continue to receive disability pay during the holiday. Progression and merit increases are based upon acceptable performance. Employees on leave for 12 weeks or less will be eligible for merit increases; however, employees on leave for more than 12 weeks will be eligible for a pro-rated merit increase. Unacceptable performance reviews may also delay merit increases for employees on leave for 12 weeks or less. Pay increases will be in effect on the first full day back to work. Short-Term Disability Pay/Plant Shutdown Periods: Employees on Short-Term Disability qualify for disability pay during any shutdown periods. Shutdown Periods are dependent upon Company performance and are at the discretion of Larson Manufacturing. For complete details please refer to the Larson Benefit Website - Short-Term Disability Booklet or request a Summary Plan Description from the Benefits Department. LONG-TERM DISABILITY LEAVE Larson purchases a Long-Term Disability insurance plan for all of its full-time regular employees. Qualified employees are eligible for this insurance plan the first day of the month following one year of employment. Eligible employees would receive benefits after a 180-day elimination period. A person on disability for longer than 180 days is no longer considered to be an active employee of Larson Manufacturing. Therefore, all Company benefits cease and COBRA options will be mailed to the employee. At the time of this change to inactive status, the Company will review the disability to determine whether an extended leave can be accommodated. This extension does not affect Long-Term Disability benefits, but would allow the employee to return to work within a reasonable period of time, if able. For complete details please refer to the Larson Benefit Website - Long-Term Disability Booklet or request a Summary Plan Description from the Benefits Department. MILITARY LEAVE Larson complies fully with all applicable federal and state laws granting leave and employment rights to employees serving in any branch of the uniformed services of the United States. Some benefits may cease during a Military Leave of Absence. Contact your Department Leadership Team for more information and to request a Military Leave of Absence. BEREAVEMENT LEAVE


An employee may take time off to attend the funeral and/or make arrangements for burial due to the death of an immediate family member. The employee should notify his/her Department Leadership Team immediately of the necessity to be absent from work. Full-time employees, after 60 days of employment, will receive up to three days of paid bereavement leave and two days of unpaid bereavement leave in the event of a death of a legal spouse, parent (including step-parent), child (including step-child), brother (including step-brother), and sister (including step-sister). One day paid and two days unpaid bereavement leave will be allowed in the event of the death of a father-in-law, mother-in-law, brother-in-law, sister-in-law, son-in-law, daughter-in-law, grandparent (including step-grandparent), or grandchild (including step-grandchild). Employees can use any accrued P.T.O. for the unpaid portion of bereavement leave if they desire. Full-time employees with less than 60 days of employment and part-time employees will be allowed five days of unpaid bereavement leave in the event of a death of a legal spouse, parent (including step-parent), child (including step-child), brother (including step-brother), and sister (including step-sister). Three days unpaid bereavement leave will be allowed in the event of the death of a father-in-law, mother-in-law, brother-in-law, sister-in-law, son-in-law, daughter-in-law, grandparent (including step-grandparent), or grandchild (including step-grandchild). Any additional time off for bereavement leave will require the approval of the CPC. JURY DUTY LEAVE Larson encourages employees to fulfill their civic responsibility by serving jury duty when required. Employees are responsible for making their Department Leadership Team aware of the jury duty start time and how their regularly scheduled hours are going to be accounted for during the time of the jury duty. Larson Manufacturing will pay for the amount of time the employee served on jury duty less the amount of pay the employee receives from the court. Employees are allowed to keep mileage, hotel, meal expenses, etc. reimbursed to them by the court. Hourly employees are expected to call their Department Leadership Team each day after they are released from jury duty for the day. Employees must inform their Department Leadership Team what time of day they were released and when they must next report for jury duty. Day shift employees are expected to work prior to the start of jury duty and after they are released from jury duty. All other shift employees have the option to work the balance of their scheduled work hours for the day. Salaried personnel who serve on jury duty will be paid their regular salary less the amount of pay the employee receives from the court. Employees must notify their Department Leadership Team when they are expected to report for jury duty and it is expected they will return to work as soon as possible after completing their jury duty for the day.


WITNESS DUTY LEAVE Larson employees summoned to serve as witnesses in court must bring a copy of the subpoena to their Department Leadership Team. In turn, their Department Leadership Team will make all necessary arrangements for the employee to take the time off needed to perform their civic duty. This absence will be considered an approved unpaid absence. The employee may choose to use their P.T.O to cover the absence if they wish. Only when a subpoena has been served, will the employee receive this time off as an approved absence. In cases where employees are plaintiffs, defendants, or in which they are testifying for a fee as expert witnesses, the employee must plan to cover this absence under the current attendance policy. Salaried exempt personnel who perform Witness Duty and work any portion of a work week will be paid their regular salary less any witness fees that they may receive. RETURN TO WORK FOLLOWING ILLNESS OR INJURY Employees who are absent due to their own injury or illness for four or more consecutive days must provide a note from their physician indicating that they are able to return to work and listing any work restrictions they may have. Employees who are returning from intermittent leave under the Family and Medical Leave policy are not required to provide a note from their physician. In the case of such leave, the Company will notify the employee if any recertification of the need for leave is required. FAILURE TO RETURN FROM LEAVE Failure to return at the expiration of any leave of absence is assumed to be a voluntary resignation. If the employee simply does not come back, they are expected to reimburse Larson Manufacturing for payments made on their behalf during the leave, including payments made for insurance premiums.


CHAPTER 7

Employee Conduct

GENERAL BEHAVIOR All employees of Larson Manufacturing Company are expected to conduct themselves at all times in a courteous and respectful manner. There may be situations that arise that cannot be accepted as proper or professional conduct. Each situation of unacceptable conduct will be reviewed closely and the action taken will depend on the circumstances and/or the employee's history of overall conduct. ATTENDANCE Larson expects employees to be at work on time and to work the full number of hours scheduled for their position. Attendance is an essential function of all positions. Employees are required to be at their workstation ready to work at the start of their shift. In the rare instances when employees cannot avoid being late to work or are unable to work as scheduled, they should notify their Department Leadership Team 30 minutes in advance of the anticipated tardiness or absence. Failure to notify the Company for three consecutive days will result in the Company accepting the employee’s actions as a self-resignation. For complete details regarding attendance, please refer to the Larson Attendance Policy. NON-DISCLOSURE The protection of confidential business information and trade secrets is vital to the interests and the success of Larson. Such confidential information includes, but is not limited to, the following examples:

Compensation data. Customer lists. Financial information. Marketing strategies. New materials research. Pending projects and proposals. Proprietary production processes. Research and development strategies.

Scientific data. Scientific formulae. Scientific prototypes. Technological data. Technological prototypes. Product pricing and sales history or

information. Employee lists.


All employees signed a non-disclosure agreement as a condition of employment. Any employee who discloses trade secrets or confidential business information will be subject to corrective action, up to and including possible termination of employment and legal action, even if he/she does not actually benefit from the disclosed information.

TOBACCO USE

All buildings of Larson Manufacturing Company are tobacco-free. PARKING FACILITIES Parking facilities are considered Company property; therefore, all Company rules of conduct and housekeeping apply. The Company assumes no responsibility for employee’s vehicles or contents while on Company property. SOLICITATION (Amended 2/2/10) Solicitation, distribution of literature or trespass by non-employees is prohibited on these premises. Solicitation by an employee is prohibited while either the employee soliciting or the employee being solicited is on working time. Distribution of advertising material, handbills, printed or written literature of any kind is prohibited in working areas at all times. CONFLICTS OF INTEREST Business decisions must be made impartially and solely on the basis of such factors as price, quality, service, financial responsibility, and the maintenance of adequate and reliable sources of supply. Exercise care and discretion to ensure any business courtesy extended or given does not, in fact or appearance, influence the outcome of business decisions. No payment or arrangement of any kind shall be made by any employee or representative, which is illegal under United States law or the law of any country affected by such payment or arrangement. USE OF COMPANY EQUIPMENT AND SERVICES Larson Manufacturing provides a variety of Company equipment such as phones, computers, email and Internet access for use in conducting Company business. Therefore, such equipment and services should be used primarily for business purposes. Larson expects its employees to use discretion when dealing with Company equipment so that any personal use does not interrupt daily work activities.


Computers Computers are to be used primarily for business purposes and reflect the Company image. All data entered on the Company’s computers is considered the Company’s property. No employee should knowingly enter false or misleading information in the Company’s computer system or destroy any data which the Company needs to conduct its business. For various reasons, the Company may access your equipment. Electronic Mail/Internet Electronic mail and the Internet are to be used primarily for business purposes and should reflect the Company image. The Company will, on occasion, access your email and computers for various reasons. Larson Manufacturing expects all users of electronic mail and computer software to prepare communications in a respectful and courteous manner. Approved and authorized software applications are allowed to be downloaded. Please consult with the Larson Information Systems Department for any questions on this process. Employees are expected to use good business sense in regards to the safekeeping of Company resources (avoiding computer viruses, unauthorized email attachments and spam, or unsuitable Internet sites). Telephones The telephone lines at Larson Manufacturing must remain open for business calls and to service our customers. Employees should use discretion and portray the Company image when using Company phones for personal use. Employees are discouraged from receiving personal phone calls while at work. However, any emergency calls will be paged directly to the employee or through their Department Leadership Team. Personal or Company-Provided Cellular Phones and Electronic Devices While at work, it is expected that any use of personal cellular phones and/or electronic devices does not interrupt daily work activities. See your Department Leadership Team for department guidelines. Where job or business needs demand immediate access to an employee, the Company may issue a business cellular phone to an employee for work-related communications. Employees in possession of Company equipment such as cellular phones and/or electronic devices are expected to protect the equipment from loss, damage or theft, and use in a safe manner at all times. Voice-Mail Voice-mail messages should reflect the Company image. They should be composed in a professional manner. Larson Manufacturing expects that employee statements in voice-mail will reflect favorably on the Company and the employee. Some Departments within Larson Manufacturing may expect employees to follow additional voice-mail procedures. Please contact your Department Leadership Team for specific department procedures.


RETURN OF PROPERTY Employees are responsible for all property, materials, or written information issued to them or in their possession or control. Employees must return all Larson property immediately upon request or upon termination of employment. Larson may take all legal action deemed appropriate to recover or protect its property. RESPECTFUL WORK ENVIRONMENT GUIDELINES The Respectful Work Environment Guidelines encompasses three policies regarding an employee’s role in ensuring our work environment remains free of discrimination, disrespect or harassment, alcohol, illegal drugs, legal substances used illegally, and violence. We expect our employees to be courteous, respectful, and professional in their interaction with others. Employees are also expected to help ensure a safe and positive work environment by promptly reporting inappropriate conduct when they become aware of it. The Respectful Work Environment includes employees, vendors, customers, contractors, and visitors. The Respectful Work Environment Guidelines are distributed to all employees and available to vendors, customers, contractors, and visitors. As a member of the Larson team, employees are expected to familiarize themselves with these and other policies. Policy for Equal Opportunity and Against Discrimination and Harassment It is the policy of Larson to provide a working environment free of discrimination and harassment. Larson treats all persons equally, regardless of race, color, sex, religion, national origin, age, military status, disability, or any other characteristic protected by applicable local, federal or state laws. If you have questions, please refer to the Larson Respectful Work Environment Policy provided by your Department Leadership Team. Policy for a Drug and Alcohol-Free Workplace Larson Manufacturing’s goal is to maintain a safe, healthy, and efficient operation and to protect the safety and security of employees, property, and equipment. Being under the influence of drugs or alcohol on the job poses serious safety and health risks to both the user and teammates. The use, possession, and distribution of illegal drugs also pose unacceptable risks to the maintenance of a safe and healthy working environment. Larson Manufacturing believes that a working environment free of drug and alcohol abuse is safer, healthier, and more productive. If you have questions, please refer to the Larson Respectful Work Environment Guidelines provided by your Department Leadership Team. Policy for a Violence-Free Workplace Larson Manufacturing does not tolerate violence and will work to prevent violent incidents from occurring. For that reason, violations of this policy may result in corrective action up to and including termination. To ensure a secure working environment at all Larson Manufacturing sites, security procedures will be evaluated routinely and strengthened as needed. Necessary training will be provided on a timely


basis at all locations. If you have questions, please refer to the Larson Respectful Work Environment Guidelines provided by your Department Leadership Team. EMPLOYEE ASSISTANCE There may be times when the Department Leadership Team or Managers need to refer employees to professional counselors for help on issues outside of their expertise. For this reason, Larson has a list of professional counselors and programs that can offer assistance to employees when difficult situations begin to affect their job performance. Some counseling and programs are free of charge while others require the employee to pay for the services. To access this referral system, contact your Department Leadership Team or the Human Development Manager for assistance. PROBLEMS AND COMPLAINTS Misunderstandings or conflicts can arise in any organization. To ensure effective work relations, it is important such matters be resolved before serious problems develop. Most incidents resolve themselves naturally. However, should a situation persist which you believe is detrimental to you or the Company, you should follow the procedures described below. Step 1. An employee having any questions or difficulty should first discuss the matter with his/her Department Leadership Team. Because your Department Leadership Team is most familiar with you and your particular situation, they can usually solve the problem for you on an informal basis. A verbal response will usually be given immediately after your discussion with your Department Leadership Team. Step 2. If you are not satisfied with your Department Leadership Team’s handling of the problem or complaint, or if you prefer not discussing the situation with your Department Leadership Team, contact your Department Head/Plant Manager. Your Department Head/Plant Manager will generally respond to your problem or complaint within three (3) working days. Step 3. Finally, if you are still not satisfied with the outcome, please make an appointment to discuss the matter with the Human Development Manager or provide documentation regarding your concerns to a member of the CPC. Remember that we want to be fair. We are willing to hear any complaints you might have. Moreover, we will try to give a fair and reasonable response to whatever objection or question you may have.


CORRECTIVE ACTION At times during employment, it may be necessary for your Department Leadership Team to take some form of corrective action. Corrective action is sometimes necessary to improve an employee’s unacceptable behavior. This could include four types of corrective action: oral warning, written warning, suspension and termination. The level to be taken will be based upon the employee’s past work record, history, and the level of seriousness of the violation.

Types of Corrective Action: The Department Leadership Team will provide recommendations as to the most appropriate corrective action to be taken. Depending on the situation, Larson may repeat, bypass or shorten the time span between any of the steps listed below and the suggested steps in the corrective action guidelines found on the following pages.

• An Oral Warning is issued by a Department Leadership Team when a minor violation of a rule or policy has occurred. Department Leadership Team will maintain a record of oral warnings. These typically will remain active for one year.

• A Written Warning is issued when a more serious type of corrective action is required. The employee will have an opportunity to make any comments on the warning record and sign it. These typically will remain active for one year.

• Corporate Personnel Committee (CPC) Review: The CPC will usually be consulted for all Employee Warning records that result in the most serious of corrective actions: suspensions or terminations. The suspension length may be reduced or lengthened by the CPC to fit variable circumstances of work place needs.

Request for Review of Corrective Action Larson Manufacturing has a process for requesting the next level of management at their facility to review a corrective action that an employee was given but believes was not factual. The employee must, within 15 calendar days of the corrective action, present in writing the details of why the action was not factual, what their suggestion is, and provide the supporting written documentation. All requests for review will be considered. In the case of the request to review a suspension or termination, the same process will apply by providing the same information to the CPC for additional review.

Corrective Action Guidelines The following guidelines show some examples that could be construed as unacceptable conduct resulting in corrective action. Your Department Leadership Team will recommend what they feel is the appropriate corrective action. The CPC will review all infractions that are recommended for suspension and/or termination. Larson drivers will refer to these guidelines, along with the Driver Violations Matrix, which is available through their Department Leadership Team.

See Corrective Action Guidelines on the following page.


CORRECTIVE ACTION GUIDELINES

The following are only guidelines. The Company reserves the right to determine appropriate disciplinary action at its discretion considering all the circumstances. In some cases, for example, immediate termination may occur even when the guidelines below list written warnings as the recommended corrective action.

UNACCEPTABLE CONDUCT (INCLUDING BUT NOT LIMITED TO) - Infractions of this nature will most likely result in immediate termination.

Description Corrective Action

Possession of weapons, explosives, or firearms on Company premises. CPC Review

Intentionally providing false personal, production, medical, or other Company information.

CPC Review

Theft or removal from the premises of any Company property (including information) or property of any other employee without proper authorization.

CPC Review

Engaging in sabotage or espionage, or deliberate and serious damage to Company property or property of another employee.

CPC Review

Willful, deliberate or negligent disregard for Company policies and/or procedures. CPC Review

Violation of Respectful Work Environment Guidelines (Includes Policy for Equal Opportunity and Against Discrimination and Harassment; Policy for a Drug and Alcohol-Free Workplace; and Policy for a Violence-Free Workplace).

CPC Review

Insubordination. CPC Review

Willful or deliberate failure to follow medical restrictions both on and off the job. CPC Review

Willful or deliberate violation of Company Security Policy. CPC Review

UNACCEPTABLE CONDUCT (INCLUDING BUT NOT LIMITED TO) – Multiple infractions of any nature may result in the review of the entire work history to determine level of corrective action.

Violation of Company attendance policies. 1st Written 2nd Written CPC Review

Violating a safety rule, safety practice or engaging in horseplay. 1st Written 2nd Written CPC Review

Use of tobacco products in unauthorized areas. 1st Written 2nd Written CPC Review

Leaving workstation or department without approval. 1st Written 2nd Written CPC Review

Inability to work harmoniously with others (includes employees, vendors, customers, visitors and contractors).

1st Written 2nd Written CPC Review

Failure to perform at established standards. 1st Written 2nd Written CPC Review

Failure to follow Company policy. 1st Written 2nd Written CPC Review

Failure to follow specified job instructions. 1st Written 2nd Written CPC Review

Creating non-conforming product due to carelessness. 1st Written 2nd Written CPC Review

Failure to report incident, injury, or near miss incident within 24 hours.

1st Written 2nd Written CPC Review

Violation of the Company Security Policy. 1st Written 2nd Written CPC Review

Index A Employees Absence After Reporting to Work………..... Chapter 6 Page 4 900 Hour Temporary………………….. Chapter 3 Page 2 Absent Without Notification……………..... Chapter 6 Page 5 Full-Time Regular…………………….. Chapter 3 Page 2 Allowable % Absent………………..……… Chapter 6 Page 5 Full-Time Seasonal…………………… Chapter 3 Page 2 Appearance/Dress Code……………..…….. Chapter 3 Page 6 Intern………………………………….. Chapter 3 Page 2 Approved Time Off…………………..……. Chapter 6 Page 4 Part-Time Extended Benefit………….. Chapter 3 Page 2 Attendance………………………………..... Chapter 7 Page 1 Part-Time Regular……………………. Chapter 3 Page 2

B Part-Time Seasonal…………………… Chapter 3 Page 2

Behavior………………………………..….. Chapter 7 Page 1 Employment Benefits and Compensation……………..… Chapter 5 Page 1 Applications…………………………... Chapter 3 Page 1 Benefits Continuation (COBRA)……..…… Chapter 5 Page 2 Classifications………………………… Chapter 3 Page 1 Bereavement Leave………………..………. Chapter 6 Page 11 Exit Interviews……………………….. Chapter 3 Page 6 Bonus Programs……………………..…….. Chapter 5 Page 4 Layoff………………………………… Chapter 3 Page 5 Breaks……………………………………... Chapter 3 Page 9 Resignations………………………….. Chapter 3 Page 5 Bulletin Boards…………………………..… Chapter 3 Page 8 Retirement……………………………. Chapter 3 Page 5

C Termination…………………………… Chapter 3 Page 5

Call-Backs……………………………..…... Chapter 5 Page 7 Verifications…………………………... Chapter 3 Page 1 Call-Ins………………………………..…… Chapter 6 Page 4 Work Schedules………………………. Chapter 3 Page 1 Career Development…………………..…… Chapter 3 Page 2 Equal Employment Opportunity……….. Chapter 2 Page 1 Career Opportunities………………..……... Chapter 3 Page 3 Equal Opportunity & Against Discrimination Cell Phones………………………..……….. Chapter 7 Page 3 and Harassment Policy……………….. Chapter 7 Page 4 COBRA……………………………..……... Chapter 5 Page 2 Equipment and Materials, Excess………. Chapter 3 Page 9 Commitment to Employees…………..……. Chapter 2 Page 2 Equipment and Services, Use of………... Chapter 7 Page 2 Community Service Policy…………..…….. Chapter 3 Page 8 F

Company: 401 (K) Plan…………………………….. Chapter 5 Page 3 About Our Company………………..…… Chapter 1 Page 2 Family and Medical Leave Act (FMLA).. Chapter 6 Page 7 Mission……………………………..……. Chapter 1 Page 1 Full-Time Regular Employees………….. Chapter 3 Page 2 Philosophy…………………………..…… Chapter 1 Page 1 Full-Time Seasonal Employees………… Chapter 3 Page 2 Company Bonus Programs…………..…….. Chapter 5 Page 4 H

Company Equipment, Use of…………..….. Chapter 7 Page 2 Health Commitment…………………….. Chapter 4 Page 1 Compensation…………………..…………. Chapter 5 Page 5 Hiring of Relatives……………………… Chapter 3 Page 4 Computer Equipment……………..………. Chapter 7 Page 3 Holidays………………………………… Chapter 5 Page 6 Conflicts of Interest……………………..… Chapter 7 Page 2 Human Relations………………………... Chapter 2 Page 1 Corporate Personnel Committee ………….. Chapter 2 Page 2 I

Corrective Action…………………..……… Chapter 7 Page 6 Immigration Laws………………………. Chapter 3 Page 4 Corporate Personnel Committee Review… Chapter 7 Page 6 Intern……………………………………. Chapter 3 Page 2 Corrective Action Guidelines……………. Chapter 7 Page 6 Internet………………………………….. Chapter 7 Page 3 Request for Review of Corrective Action... Chapter 7 Page 6 J

Types of Corrective Action………………. Chapter 7 Page 6 Job Reassignments……………………… Chapter 3 Page 3

D Jury Duty Leave………………………… Chapter 6 Page 12

Dental Coverage……………………………. Chapter 5 Page 2 L

Department/Shift Transfers………………… Chapter 3 Page 3 Larson Foundation……………………… Chapter 3 Page 8 Dependent Life Insurance………………….. Chapter 5 Page 2 Layoff…………………………………… Chapter 3 Page 5 Disability Leaves of Absence……………………… Chapter 6 Page 7 Disability Accommodations……………… Chapter 2 Page 3 Bereavement Leave…………………… Chapter 6 Page 11 Disability Management Program………… Chapter 2 Page 3 Failure to Return from Leave…………. Chapter 6 Page 13 Long-Term Disability……………………. Chapter 6 Page 11 Family & Medical Leave Act (FMLA).. Chapter 6 Page 7 Short-Term Disability……………………. Chapter 6 Page 10 Family & Medical Leave & P.T.O……. Chapter 6 Page 9 Disaster Planning…………………………... Chapter 4 Page 4 Jury Duty Leave………………………. Chapter 6 Page 12 Donations Long-Term Disability Leave………….. Chapter 6 Page 11 Habitat for Humanity…………………….. Chapter 3 Page 8 Maternity/Pregnancy Leave…………... Chapter 6 Page 9 Larson Foundation……………………….. Chapter 3 Page 8 Military Leave………………………… Chapter 6 Page 11 Matching Funds………………………….. Chapter 3 Page 8 Short-Term Disability Leave…………. Chapter 6 Page 10 United Way………………………………. Chapter 3 Page 8 Witness Duty Leave………………….. Chapter 6 Page 13 Dress Code…………………………………. Chapter 3 Page 6 Life Insurance…………………………... Chapter 5 Page 2 Drug and Alcohol-Free Workplace Policy… Chapter 7 Page 4 Long-Term Disability (LTD)…………… Chapter 5 Page 3

E M

E-Mail……………………………………… Chapter 7 Page 3 Mandatory Overtime……………………. Chapter 6 Page 6 Emergency Closings……………………….. Chapter 6 Page 6 Matching Funds………………………… Chapter 3 Page 8 Employee Activities Committee…………… Chapter 3 Page 9 Maternity/Pregnancy Leave……………. Chapter 6 Page 9 Employee Assistance………………………. Chapter 7 Page 5 Medical Absence Policy……………….. Chapter 6 Page 5 Employee Continuing Education…………... Chapter 5 Page 4 Medical Coverage………………………. Chapter 5 Page 1 Employee Purchase Program………………. Chapter 5 Page 5 Memorial Scholarship Program………… Chapter 5 Page 5 Employee Relations………………………... Chapter 2 Page 2 Military Leave…………………………... Chapter 6 Page 11

N S 900 Hour Temporary Employee…………… Chapter 3 Page 2 Safety Commitment……………………. Chapter 4 Page 1 Non-Disclosure…………………………….. Chapter 7 Page 1 Safety Responsibilities and Employee

O Involvement……………………….…. Chapter 4 Page 2

Occupational Safety & Health Administration Sales Salaried Employees……………… Chapter 6 Page 3 (OSHA)…………………………………... Chapter 4 Page 2 Salaried Exempt Employees…………… Chapter 5 Page 6 “Off the Clock” Work……………………… Chapter 5 Page 7 Scholarship Program…………………… Chapter 5 Page 5 Office Attire………………………………... Chapter 3 Page 6 Security………………………………… Chapter 4 Page 3 Outside Employment………………………. Chapter 3 Page 4 Shift Differential Pay………………….. Chapter 5 Page 7 Overtime…………………………………… Chapter 5 Page 7 Shift Transfers……………………….…. Chapter 3 Page 3

P Short-Term Disability (SDT)………….. Chapter 5 Page 3

Paid Time Off……………………………… Chapter 6 Page 1 Short-Term Disability Leave………….. Chapter 6 Page 10 P.T.O. Accrual Rate……………………… Chapter 6 Page 2 Solicitation…………………………….. Chapter 7 Page 2 P.T.O. Donations…………………………. Chapter 6 Page 3 T

P.T.O. Flexibility………………………… Chapter 6 Page 2 Tardiness…………………………….…. Chapter 6 Page 5 P.T.O. 4th Quarter Flex Plan……………… Chapter 6 Page 3 Telephones…………………………….. Chapter 7 Page 3 P.T.O. Paid Upon Termination…………... Chapter 6 Page 3 Terminations…………………………… Chapter 3 Page 5 P.T.O. Quarterly Flex Plan………………. Chapter 6 Page 3 Time Keeping………………………….. Chapter 5 Page 7 P.T.O. Year End Carry Over……………... Chapter 6 Page 3 Time Off……………………………….. Chapter 6 Page 1 Parking Facilities…………………………... Chapter 7 Page 2 Tobacco Use……………………………. Chapter 7 Page 2 Part-Time Expanded Benefit Employee…… Chapter 3 Page 2 U

Part-Time Regular Employee……………… Chapter 3 Page 2 Unapproved Absences…………………. Chapter 6 Page 6 Part-Time Seasonal Employee……………... Chapter 3 Page 2 Unpaid Time Off (U.T.O.)……………... Chapter 6 Page 1 Pay………………………………………….. Chapter 5 Page 5 Use of Company Equipment & Services. Chapter 7 Page 2 Advances…………………………………. Chapter 5 Page 8 V

Corrections……………………………….. Chapter 5 Page 8 Violence-Free Workplace Policy………. Chapter 7 Page 4 Deductions……………………………….. Chapter 5 Page 8 Vision Coverage (Employee Only)……. Chapter 5 Page 2 Shift Differential…………………………. Chapter 5 Page 7 Voice Mail……………………………... Chapter 7 Page 3 Performance Evaluation……………………. Chapter 3 Page 3 Voluntary Protection Program (VPP)….. Chapter 4 Page 2 Personal Absences (P.A.)………………….. Chapter 6 Page 4 W

Personal Data………………………………. Chapter 5 Page 8 Wellness & Healthy Lifestyle Program... Chapter 5 Page 4 Personal Protective Equipment (PPE)……... Chapter 4 Page 3 Witness Duty Leave……………………. Chapter 6 Page 13 Personnel Files……………………………... Chapter 3 Page 9 Work-Related Injuries, Illnesses, Prescription Coverage……………………… Chapter 5 Page 2 Accidents & Near-Miss Incidents…… Chapter 4 Page 3 Pre-Tax Deductions and Flexible Spending Work Schedules………………………... Chapter 3 Page 1 Accounts…………………………………. Chapter 5 Page 2 Work Schedule & Job Reassignments…. Chapter 3 Page 3 Problems and Complaints………………….. Chapter 7 Page 5 Workers’ Compensation Insurance……. Chapter 5 Page 4 Production Attire…………………………… Chapter 3 Page 7

Profit Sharing………………………………. Chapter 5 Page 3 Progressive Corrective Action For Excessive Tardiness…………………………………. Chapter 6 Page 5

Progressive Corrective Action for Unapproved Absences…………………………………. Chapter 6 Page 6 Purchase Program, Employee……………… Chapter 5 Page 5

Q

Quality Awareness…………………………. Chapter 1 Page 3 Quality and Continuous Improvement……... Chapter 1 Page 3

R

Reassignments……………………………… Chapter 3 Page 3 Records…………………………………….. Chapter 3 Page 10 Reimbursements of Business Expenses……. Chapter 5 Page 8 Relatives, Hiring of………………………… Chapter 3 Page 4 Relocation………………………………….. Chapter 3 Page 4 Request for Review of Corrective Action….. Chapter 7 Page 6 Resignations………………………………... Chapter 3 Page 5 Respectful Work Environment Guidelines… Chapter 7 Page 4 Retirement………………………………….. Chapter 3 Page 5

Return of Property………………………….. Chapter 7 Page 4 Return to Work Following Illness or Injury……………………………………... Chapter 6 Page 13

January 2007

Contact Information

Larson Plants: Main Line (Brookings, South Dakota) (800) 238-9681 2333 Eastbrook Drive Brookings, South Dakota 57006 Main Line (Lake Mills, Iowa) (641) 592-2282 500 North Larson Avenue Lake Mills, Iowa 50450 Larson Central Distribution Centers: Main Line (Albert Lea, Minnesota) (507) 373-9099 600 East 14th Street, Suite B Albert Lea, MN 56007 Main Line (Mocksville, North Carolina) (800) 541-8173 125 B Quality Drive Mocksville, NC 27028 Company Website: www.larsondoors.com

Benefit Website: http://benefits.larsondoors.com Password: larsonbenefits

Employee Acknowledgment Form Handbook Effective December 11, 2013

I acknowledge my receipt of this Larson Manufacturing, Inc. Handbook and my responsibility to become familiar with its contents. I understand this Handbook is the property of Larson. It should not be copied or modified in any way. I further understand and agree to the following: • This Handbook represents a brief summary of some of the more important Larson policies

relative to employment. This Handbook is not intended to be all inclusive of Company policies or practices; it is only a set of guidelines. I understand that I should consult my Department Leadership Team regarding any questions not answered in the Handbook.

• I understand this Handbook supersedes any previous Handbook or unwritten policies.

Revisions to this Handbook may occur. I understand that revised information may supersede, modify, or eliminate existing policies. The Corporate Personnel Committee (CPC) has the ability to adopt any revisions to the policies in this Handbook.

• I understand that any revision to this Handbook may be communicated to me via the Larson

Intranet. I acknowledge that it is my responsibility to view the Larson Intranet for the current revisions to the policies set forth in this Handbook.

• I have entered into my employment relationship with Larson Manufacturing voluntarily and

acknowledge that there is no specified length of employment. Accordingly, either Larson or I can terminate the relationship at will, with or without cause, at any time.

• I understand the content of this Handbook does not constitute an expressed or implied

contract of employment nor a legal document. • I understand that no Company official has the authority to enter into an oral employment

contract, and only the President of the Company can enter into a written employment contract.

• I understand that I am responsible to read the contents of this Handbook and I will plan to

comply with the policies contained in this Handbook and any revision made to it. ____________________________________________ Employee Name (Print) ____________________________________________ Employee Signature __________________________________ Date

12/11/13

Documents

FULL-TIME EMPLOYEE HANDBOOK - TouchPoints Portalbenefits.larsondoors.com/media/4020275/employee-handbook.pdf · From Our President and CEO, Jeff Rief Welcome to Larson Manufacturing