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Silverleaf Resorts Inc. Employee Handbook ................................................................... viii Chapter 1—Introduction to the Handbook ......................................................................... 1

Purpose of the Handbook ................................................................................................ 2

Policies are Not Contracts or Guarantees of Rights.................................................... 2

Overview of the Company .............................................................................................. 2

Chapter 2—Policies ............................................................................................................ 4

Americans with Disabilities Act (ADA) ......................................................................... 5

Scope of the ADA ....................................................................................................... 5

Reasonable Accommodations ..................................................................................... 5

Equal Employment Opportunity (EEO).......................................................................... 5

FEO Commitment ....................................................................................................... 5

Harassment ...................................................................................................................... 6

Examples of Harassment............................................................................................. 6

Chapter 3—Employment Status and Personnel Records .................................................... 8

Employee Classification ................................................................................................. 9

Initial Employment Period ............................................................................................ 10

Personal Files and Records ........................................................................................... 10

Updating Information................................................................................................ 10

Employees Should Notify Silverleaf of Changes ..................................................... 10

Access to Files .......................................................................................................... 11

Safeguarding Personal Information .......................................................................... 11

Confidentiality and Corrective Action ...................................................................... 11

Chapter 4—Hiring Issues .................................................................................................. 13

Employment of Minors ................................................................................................. 14

Immigration law Compliance ....................................................................................... 14

Non-Discrimination .................................................................................................. 14

Rehire ............................................................................................................................ 14

Former Employees (Rehires) .................................................................................... 15

Chapter 5—Employment Practices ................................................................................... 16

Complaint Procedure .................................................................................................... 17

Informal Problem Solving......................................................................................... 17

Formal Problem Solving ........................................................................................... 17

Procedures are Guidelines......................................................................................... 18

Table of Contents

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Corrective Action .......................................................................................................... 18

Employee Responsibility .......................................................................................... 18

Possible Corrective Action ....................................................................................... 18

Management Discretion ............................................................................................ 18

Emergency Closing ....................................................................................................... 19

If No Emergency Closing is Announced .................................................................. 19

Employee Responsibilities ........................................................................................ 19

Compensation and Leave .......................................................................................... 19

Medical Examination, Drug Testing and Health Certification ..................................... 20

Exams and Testing .................................................................................................... 20

Medical Certification ................................................................................................ 20

Outside Employment (Moonlighting) ........................................................................... 20

Conditions ................................................................................................................. 20

Consultation with Management ................................................................................ 21

Promotions and Transfers ............................................................................................. 21

Eligibility .................................................................................................................. 21

Process ...................................................................................................................... 21

Return to Work and Light Duty .................................................................................... 21

Case-by-Case Consideration ..................................................................................... 21

Procedures ................................................................................................................. 22

Serious Illness and Medical Conditions ........................................................................ 22

Termination of Employment ......................................................................................... 23

Resignation ............................................................................................................... 23

Exit Interview............................................................................................................ 23

Paychecks .................................................................................................................. 23

Benefits ..................................................................................................................... 24

Chapter 6—Employee Responsibility............................................................................... 25

Appearance and Grooming ........................................................................................... 26

Expected Attire ......................................................................................................... 26

Women ...................................................................................................................... 26

Men ........................................................................................................................... 26

Grooming and Appearance ....................................................................................... 27

Special Dress Standards ............................................................................................ 27

Prohibited Attire........................................................................................................ 27

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Attendance and Dependability ...................................................................................... 28

Company Expectation ............................................................................................... 28

Event Location Information ...................................................................................... 28

Notification of Absence/Tardiness ........................................................................... 28

Make-up Time ........................................................................................................... 29

Food and Meals ............................................................................................................. 29

Communication and Information Systems .................................................................... 30

Telephone/Cellular Phone ......................................................................................... 31

Email and Voicemail................................................................................................. 31

Social Networking .................................................................................................... 31

Confidentiality .............................................................................................................. 32

Drugs and Alcohol ........................................................................................................ 32

Employee Conduct and Work Rules ............................................................................. 33

Performance .............................................................................................................. 33

Attendance ................................................................................................................ 33

Honesty and Integrity ................................................................................................ 33

Behavior .................................................................................................................... 33

Personal Property, Searches and Inspection ................................................................. 34

Protecting Personal Property ..................................................................................... 34

Searches and Inspection ............................................................................................ 34

Employee Responsibility .......................................................................................... 34

Safety ........................................................................................................................ 34

Solicitation and Distribution Activities ........................................................................ 35

Work Place Violence .................................................................................................... 36

Chapter 7—Compensation and Benefits ........................................................................... 37

Insurance Benefits ......................................................................................................... 38

Overtime ....................................................................................................................... 38

Calculating Overtime ................................................................................................ 38

Payroll Procedures ........................................................................................................ 38

Pay Procedures .......................................................................................................... 39

Paycheck Distribution ............................................................................................... 39

Lost Checks ............................................................................................................... 39

Time Records ............................................................................................................ 39

Working Hours.............................................................................................................. 40

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Lunch and Rest Breaks ............................................................................................. 40

Chapter 8—Time Off ........................................................................................................ 41

Funeral Leave................................................................................................................ 42

Eligibility .................................................................................................................. 42

Time Allowed ........................................................................................................... 42

Approval by Management......................................................................................... 42

Extra Time ................................................................................................................ 42

Holidays ........................................................................................................................ 42

Schedule .................................................................................................................... 42

Working Holidays ..................................................................................................... 43

Other Personal Time Off ........................................................................................... 43

Jury, Witness and Voting Leave ................................................................................... 43

Time off to Vote........................................................................................................ 44

Leaves of Absence ........................................................................................................ 45

Family and Medical Leave ........................................................................................ 45

Military Leave ........................................................................................................... 46

Personal and Other Leaves of Absence .................................................................... 46

Sick Leave ..................................................................................................................... 47

Eligibility .................................................................................................................. 47

Use of sick Leave ...................................................................................................... 47

Vacations....................................................................................................................... 48

Eligibility for Paid Vacation Days ............................................................................ 48

Accrual ...................................................................................................................... 48

Carry Over ................................................................................................................ 48

Scheduling................................................................................................................. 48

Pay for Used Vacation .............................................................................................. 48

Holidays During Vacation ........................................................................................ 49

Chapter 9—Expenses and Reimbursement ....................................................................... 50

Control of Expenses and Reimbursement ..................................................................... 51

Abuse of Expense Policy .......................................................................................... 51

Business Travel ......................................................................................................... 51

Car Expenses ............................................................................................................. 51

Index ................................................................................................................................. 53

Handbook Acknowledgments ........................................................................................... 57

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Page | vii

Silverleaf Resorts Inc. Employee Handbook In this employee handbook, you will receive information all Silverleaf employees need to know. Such information includes: • Silverleaf Policies • Employment Status and Personnel Records • Hiring Issues • Employment Practices • Employee Responsibilities • Compensation and Benefits • Time Off • Expenses Report

First, let us introduce ourselves and welcome you to the company. Welcome to the Silverleaf team. Congratulations on being hired to Silverleaf Resorts Incorporated. By receiving this handbook, you have been given the position of either: • Promotions Greeter • Sales Representative • Market Manager or • Call Center Worker.

Regardless of your position, this handbook will give you all you need to know about your new job. In the following section, you will read about the purpose of the handbook

Silverleaf Resorts Inc. Employee Handbook

Page | viii

Chapter 1—Introduction to the Handbook This chapter will introduce you to the ideas and purpose of

this employee handbook. This section consists of the

following information:

Purpose of the Handbook Overview of the Company.

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Purpose of the Handbook This handbook is Silverleaf’s general overview of Human Resources policies. It will give you an overview of what Silverleaf expects from its employees. Throughout the handbook you will learn the different requirements, qualities and procedures that are look for from Silverleaf employees. Employees are encouraged to contact Human Resources or their Manager with their questions. Policies are Not Contracts or Guarantees of Rights These policies are not contractual employment commitments and except for the employment at will policy may be changed or revoked at any time. No policy is intended as a guarantee of terms or conditions of employment or of relationship in any way. Employment may be terminated at any time, for any reason, with or without cause or notice. Employees may also resign at any time. These guidelines replace any previous oral or written policies and practices regarding matters covered in this handbook. The only exceptions to these policies are those written and signed by the Chief Executive Officer.

Overview of the Company Silverleaf Resorts Inc. is engaged in development, marketing, and operating of drive-to and destination timeshare resorts. Silverleaf Resorts Inc. owns seven drive-to resorts, in the following states: • Texas • Florida • Illinois • Georgia • Missouri • Massachusetts.

The family of resorts under the Silverleaf banner provides great vacation experiences in quality resorts at affordable prices, as well as a wide selection of amenities, programs and activities to enhance vacation experiences. Silverleaf’s goal is to offer the finest product, the highest levels of service and excitement and enthusiasm to make vacations memorable. Understanding the policies of the company will help you represent the company better as a whole. Chapter 2 will inform you on all the policies Silverleaf has for its employees and company.

Overview of the Company

Purpose of the Handbook

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Chapter 2—Policies This chapter will introduce you to the policies that

Silverleaf has to abide by. This section consists of the

following information:

Americans with Disabilities Act (ADA) Equal Employment Opportunity (EEO) Harassment.

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Americans with Disabilities Act (ADA) Scope of the ADA As part of our Equal Employment Opportunity commitment, Silverleaf will implement all applicable provisions of the Americans with Disabilities Act (ADA). We do not discriminate against any qualified applicant or employee with a known physical or mental disability in any employment practice including: • Hiring • Promotion • Job assignment • Compensation • Discipline • Training and • Termination.

Ability, not disability, is the basis of all of our employment decisions. Reasonable Accommodations As required under the ADA, Silverleaf will provide reasonable accommodations for qualified individuals with known disabilities to assist them in performing the essential functions of their jobs unless the accommodations would create undue hardships on the company or create direct health or safety threats.

Equal Employment Opportunity (EEO) FEO Commitment Equal employment opportunity has been, and will continue to be a basic principle at our company. Employment at our company is based upon merit, ability and qualifications. No qualified applicant or employee is to be discriminated against because of: • Race • Color • Religion • Sex • Pregnancy • Age

Equal Employment

Americans with Disabilities

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• National origin • Citizenship • Disability • Veteran • Military • genetic status or • Other status protected by federal, state, local or other law.

Our equal employment opportunity commitment applies to all areas of employment including hiring, training, placement, promotion, compensation and benefits.

Harassment All company employees have the right to work in an organization free of discrimination, harassing conduct, bullying, and unwelcoming sexual advances or requests for sexual favors. Verbal, physical, or other communication or conduct by an employee, Manager, customer, or supplier which harasses, bullies, disrupts, or interferes with another’s work performance or which creates an intimidating, offensive, or hostile environment will not be tolerated. All types of harassment, whether based on sex, pregnancy, race color, religion, age disability, genetic or military status, or other status protected by federal, state, local or other law, are unacceptable work behavior and expressly prohibited. Examples of Harassment Harassment may include conduct that demeans another person or shows hostility toward an individual because of a protected characteristic. Examples include but are not limited to: • Teasing • Unwelcomed advances • Leers • Repeated request for a date • Inappropriate touching • Pinching or patting • Practical jokes • Offensive remarks • Inappropriate personal questions • Showing inappropriate pictures or cartoons • Sharing or sending suggestive or explicit photos and • Offensive use of the internet.

Harassment

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Inappropriate conduct may exist when: • Submission to such conduct is made an explicit or implicit term or condition of

employment. • Submission to or rejection of such conduct is used as a basis for an employment

decision affecting an individual. • Such conduct has the purpose or effect of unreasonably interfering with an

individual’s work performance or creating an intimidating, hostile or offensive work environment.

Now that you understand Silverleaf’s policies, you will read and comprehend the importance of keeping your personal records up to date. As long as you are a Silverleaf employee, you will have a secure personal employee database.

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Chapter 3—Employment Status and Personnel Records This chapter will introduces you to the various statuses of

employees and keeping your information up to date. This

section consists of the following information:

Employee Classification Initial Employment Period Personal Files and Records.

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Employee Classification Classifications are important in determining eligibility for various benefits, overtime, and to clarify employment status. Since employees are employed at-will for unspecified durations, established classifications do not guarantee employment. Our employees are classified into several categories: • Nonexempt

Nonexempt are workers that receive overtime pay for in excess of 40 hours of work in a work week or otherwise as required by law. Their work and pay are determined based on their actual hours worked.

• Exempt Exempt employees hold positions which meet specific tests established by the Fair Labor Standards Act (FLSA). These types of workers are not eligible for overtime.

• Full-time Full-time employees are hired to work the company’s normal 30 or more hour workweek on a regular basis. Generally, they are eligible for full benefits subject to the terms and conditions of each benefit program. An employee’s classification may be changed to full-time status only by express written notification from Management.

• Part-time Part-time employees are scheduled to work less than 30 or more hour workweek on a regular or irregular basis. Part-time employees are eligible for limited benefits as detailed in each benefit and leave program.

• Temporary Temporary employees are hired for defined projects and/or limited timeframes and generally are not eligible for company benefits. Employment beyond any initially stated period does not imply a change in employment status. As with all other employees, temporary employees remain employees-at-will throughout their employment.

Employee Classification

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Initial Employment Period All employees, both full and part-time are required to complete Initial Employment Periods. The First 90 calendar days of employment hire are considered to be the Initial Employment Period. During this period, an employee’s potential for success performance will be closely examined. An employee can be terminated for any reason, without warning, during his/her initial employment period. It is expected that each employee will also evaluate the company and hi/her position in terms of his/her own personal needs. Under appropriate circumstances, the 90 day period may be extended. However, employment remains “at will” both during and after the Initial Employment Period and employment may be terminated at any time without corrective action for any reason.

Personal Files and Records Updating Information Records and information regarding our clients, employees and former employees are kept to ensure compliance with: • Government requirements

• Support for our business

• Benefit program

• Employment actions.

We are committed to protecting this personal information and have established

procedures to safe guard it. All employees are required to assist in keeping this personal

information confidential and current.

Employees Should Notify Silverleaf of Changes Employees are asked to notify Human Resources of any changes in their personal

information including:

• Name and/or marital status.

• Home address

• Telephone number

• Email address

• Number of dependents

Personal Files and Records

Initial Employment Period

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• W-4 information

• Emergency contact persons

• Immigration status

• Insurance beneficiaries

• Licenses

• Certifications.

Access to Files Personal files are company property and therefor access to them in restricted unless

applicable law requires otherwise. Generally, only management personal have access to

the files. Except as otherwise required by law, employees may review their own records

by making a written request for an appointment with Human Resources. A member of

Management must be present during any employee review of records. Copies of certain

records may be made. However, under no circumstances may be filed be removed.

Safeguarding Personal Information We seek to protect employee information and privacy by:

• Collecting and retaining only information that is required by law or business

operations.

• Disclosing information on a “need to know” basis and authorizing personnel to

receive it.

• Maintaining and updating physical, technological, organizational and procedural

safeguards that are appropriate to the type of information gathered. Unfortunately, no

physical location, computer system or information can ever be fully protected against

unauthorized use or abuse and so we cannot guarantee its security.

• Destroying information with care as required by law and our established procedures.

Confidentiality and Corrective Action All employees are expected to be strongly committed to implementing established

confidentiality and privacy policies. Silverleaf and its employees have a duty to protect

confidential personal and business information. Silverleaf takes confidentiality and

Page | 11

privacy issues very seriously. Consequently, violations of these policies may result in

corrective action, including termination.

Now that you understand the importance of keeping your information up to date and the

Initial Employment Period, you can proceed to know the rubric Silverleaf follows when

hiring its employees.

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Chapter 4—Hiring Issues This chapter will introduce you to the hiring guidelines of

Silverleaf. This section consists of the following

information:

Employment of Minors Immigration law Compliance Rehire.

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Employment of Minors Generally, company employees are at least 18 years of age. However, where appropriate, we may occasionally hire qualified minors for open positions. As part of the hiring process, Silverleaf seeks to ensure that we meet all child labor requirements set forth in the federal Fair Labor standards Act (FLSA), related Department of Labor regulations and applicable state law provisions. Silverleaf Resort’s goal is to provide a safe and healthy workplace for all employees.

Immigration Law Compliance Under the terms of the Immigration Reform and Control Act of 1986 (IRCA), we must verify the legal employment status of all new hires including American citizens. Therefore, all offers of employment are contingent upon an individual’s ability to procedure required documents established identifying and employment authorization. Additionally, employment discrimination against citizens and authorized aliens based on national origin and/or citizenship status is prohibited. Non-Discrimination Silverleaf does not discriminate against individuals on the basis of national origin or citizenship. Particular individuals or groups will not be required to provide more or different documentation than is required of all employees.

Rehire No employee who has been terminated by the company can be rehired without the approval of the Vice President of the function and the Executive Vice President of Human Resources. No one is eligible for rehire if previously terminated from the company for any cause.

Immigration Law

Rehire

Employment of Minors

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Former Employees (Rehires) Former employees who resigned or retired with proper notice and acceptable performance records may be rehired. Employees who were terminated by the company for performance must have approval from the vice President of the function and the Executive Vice president of Human Resources to be considered for rehire. Any employee who was terminated by Silverleaf for any cause is not eligible to be rehired. • Seniority

Rehired employees separated from the company less than 90 days may be reinstated with full seniority and service credits previously accrued. Rehired employees who have been separated more than 90 days will be treated as a new employee.

• Benefits Benefit eligibility is determined by each program.

Once hired, you are responsible for your actions. Silverleaf has practices you must follow which will be explained in the next chapter.

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Chapter 5—Employment Practices This chapter will introduce you to the work protocols

employees are to follow in certain situations. This section

consists of the following information:

Complaint Procedure Corrective Action Emergency Closing Medical Examination, Drug Testing and Health Certification Outside Employment (Moonlighting) Promotions and Transfers Return to Work and Light Duty Serious Illness and Medical Conditions Termination of Employment.

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Complaint Procedure Informal Problem Solving Silverleaf seeks to promote an atmosphere where employees are comfortable in voicing their concerns and raising employment related issues. Therefore, employees are encouraged to speak informally and discuss any problems with their Manager so that appropriate actions may be taken. The company is committed to ensuring a responsive and fair problem solving process at the lowest possible organization level and encourages this same commitment from all employees. If such informal discussions fail to resolve an employee’s concerns, he/she is encouraged to utilize our more formal complaint procedures. Formal Problem Solving Such procedures include: • Documentation in Writing

If you feel that a formal complaint is appropriate you should provide a written, detailed explanation to your Manager of the problem and related events along with a summary of how you would like to see the problem resolved. Complaints must be submitted promptly, generally within 10 business days of the event. When a complaint to your Manager may be inappropriate under the circumstances, you may submit one directly to Senior Management or Human Resources.

• Appeal If you are dissatisfied with the Manager’s decision, you may appeal within five days in writing to Senior Management or Human Resources.

• Mediation Silverleaf may elect to address any employment-related complaints or disputes at its expense through voluntary, non-binding mediation.

• Allegations of Unethical, Unsafe, Illegal, Discrimination, harassing, or Inappropriate Behavior of Managers, Co-workers and Non-employees Serious concerns regarding wrongdoing including possible unethical, unsafe, discriminatory or illegal conduct should immediately be reported directly to Management. Formal problem-solving steps should not be followed in this instance.

Complaint Procedure

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Procedures are Guidelines This policy is only a guideline. The company reserves the right to take action as Management deems appropriate.

Corrective Action Employee Responsibility All employees are expected to comply with the company’s standards of behavior and performance. Any noncompliance with these standards must be remediated and is subject to corrective action. Possible Corrective Action Examples of corrective action include: • Verbal conversation • Performance Improvement Plan • Written plan • Suspension • Probation • Demotion and • Termination.

However, nothing in this policy alters the at-will relationship between the company and its employees. All corrective action policies are guidelines only. Management Discretion In cases of serious misconduct or performance problems, an employee may be suspended or terminated. Each situation is dealt with on a case-by-case basis on the sole discretion of Silverleaf Management.

Corrective Action

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Emergency Closing We make every effort to maintain normal work hours and schedules throughout the year. However, severe weather, power outages and other extreme emergency conditions on a rare occasion may require Silverleaf to close its work facilities. Employee safety is the primary factor when considering any workplace closure. If No Emergency Closing is Announced Unless an emergency closing has been announced through the media or other communication, employees should report to work. However, every employee should determine whether he or she can safely travel to work. If the workplace is open but an employee decides if it is unsafe to travel because of severe conditions, he or she may use vacation or unpaid leave. Employee Responsibilities Employees are responsible to notify their Managers as soon as possible if they are unable to work due to a weather emergency. They should also provide contact numbers where they can be reached and keep Management informed of their work status. Compensation and Leave Employee compensation during workplace closures will be paid as allowed by law.

Emergency Closing

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Medical Examination, Drug Testing and Health Certification Exams and Testing As a condition of continued employment, employees may be required to undergo periodic medical exams and drug screening. Medical inquiries, examinations and drug testing may be undertaken at Management’s discretion if job-related and consistent with applicable legal requirement. A copy of Silverleaf’s drug policy is available for review in Human Resources. Medical Certification Documentation of medical condition and/or suitability for work may be required at Management’s discretion in certain situations. Additional medical opinions may also be requested. Note that medical information and certifications will be obtained in accordance with applicable state and federal law, including the Genetic Nondiscrimination Information Act.

Outside Employment (Moonlighting) Conditions Employees may hold outside jobs or be involved in: • Outside business • Educational • Community • Political and • Charitable activities.

As long as they continue to meet established performance standards and such activities do not impact business interests, consume company resources or create conflicts of interest. An employee’s position at our company is considered to be of primary importance. Employees are expected to devote full attention and energy to Silverleaf.

Outside Employment (Moonlighting)

Medical Examination, Drug Testing and Health

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Consultation with Management Unless acting as a representative of the company, an employee should make clear at all times that he/she is acting on a private, personal basis and not as part of Silverleaf. Management approval should be sought if any doubt exists regarding the appropriateness of an employee’s involvement in the outside activities.

Promotions and Transfers Eligibility Employees are encouraged to seek more advanced positions or lateral positions for which they qualify. Except in unusual circumstances, required by business necessity, employees must have performed acceptably in their current positions for at least one year before they seek a transfer or promotion. Additionally, an employee’s performance record and skills must be support the change in job responsibility. Process All transfer and promotions will be judged individually, based on Department needs and the skills, abilities and work record of the employee. Employees seeking a change in position should discuss it first with their Manager or with Human resources to determine if their skills and experience meet the requirements of the job. Employees are encouraged to discuss their job plans and career goals at any time with either their manger or Human Resources.

Return to Work and Light Duty Our return to work and light duty programs are intended to minimize the cost and impact of employee absences and assist employees in returning to work as soon as medically possible. When deemed appropriate, light-duty placements may be considered for employees who have sustained on-the-job injuries or illness. Case-by-Case Consideration Light duty placements and return-to-work actions are considered on a case-by-case basis. Consideration will be given to; • Medical issues • Physical restrictions

Promotions and Transfers

Return to Work and Light Duty

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• Work availability and demands • Business requirements and • Applicable legal requirements.

Light duty assignments are temporary in nature, may not extend beyond 12 weeks and are subject to management discretion, as allowed by law. Procedures Employees who believe they could benefit from the light duty program should contact Human Resources for detailed information and program requirement. All light duty and return to work options are implemented in conjunction with the employee’s physician or health care provider and other medical professionals retained by the company or Silverleaf’s Worker’s Compensation insurer.

Serious Illness and Medical Conditions Employees with serious illness or medical conditions may wish to continue their active employment. Such employees who are able to meet acceptable performance standards and whose conditions do not threaten themselves or others may continue to work. Reasonable accommodations will be provided as required under the Americans with Disabilities Act (ADA). Discrimination or harassment will not be tolerated based on an employee’s: • Medical condition • Disability or • Genetic status.

Employee requiring accommodations or who may have concerns or questions relating to this policy should contact Human Resources.

Serious Illness and Medical Conditions

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Termination of Employment Unless there is a specific written agreement, employees may resign at any time. The company also has the right to end an employment relationship at any time, for any reason, with or without cause and with or without prior notice. No manager has the authority to enter into an employment agreement for any specified time period. Resignation All employees should provide advance written notice of their intention to leave the company. The notice should state the reason for the resignation and give the date of departure. Managers and other exempt employees should provide at least three weeks’ notice. All other employees are requested to give at least two weeks’ notice. Vacation or personal days may generally not be included in the noticed period. A withdrawal of resignation may not be allowed without the permission of Human Resources. Absence without notice, as allowed by law, may be considered as having voluntary resigned if he/she is absent from work one day without notice. An employee will be considered as having voluntarily resigned if he/she is absent from work for three days or fails to return from leave within three days of the date specified. Employees failing to give proper notice will be ineligible for reemployment and may forfeit certain benefits. In unusual circumstances an employee may appeal his/her job abandonment termination. Exit Interview Management may determine that it would be helpful to conduct an exit interview with a departing employee to determine the employee’s reasons for leaving and opinions regarding the workplace. The time is also used to arrange for the return of company property and to answer to answer employee questions regarding benefits and other issues. Such interviews are generally conducted during the last week of employment. Paychecks Terminated employees and those who resign will be paid as is required by State Law. Payment for earned vacation will be provided at termination. However, no payment will be made for accrued sick or other leave days unless otherwise required by law.

Termination of Employment

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Benefits Benefits including medical, dental and vision end on the last day of the month in which an employee works. All other optional benefits end on the last day of employment. Employees, unless terminated for gross misconduct, may choose to continue their medical, dental or vision benefits under COBRA. Contact Human Resources for more information. With the practices of an employee explained, you can now know the responsibilities you will to receive as a Silverleaf employee. Chapter 6 will give you an explanation of all the responsibilities you will have.

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Chapter 6—Employee Responsibility This chapter will introduce you to the responsibilities of

the employee. This section consists of the following

information:

Appearance and Grooming Attendance and Dependability Communication and Information Systems Confidentiality Drugs and Alcohol Employee Conduct and Work Rules Personal Property, Searches and Inspection Solicitation and Distribution Activities Work Place Violence.

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Appearance and Grooming Service and professionalism are what separated our company from it competition. The nature of our business demands that an employee’s appearance reflects an appropriate professional image and be consistent with an employee’s particular duties. Dress, grooming and hygiene should be appropriate to the nature of work, degree of customer contact, expected business standards and the need to maintain job safety. Employees with special needs or questions or concerns regarding dress and grooming standards should contact Human Resources. Improperly groomed or dressed employees will be subjected to corrective action. When in doubt as to whether or not an outfit or clothing item is permissible to wear, confirm with your supervisor before wearing it. Expected Attire Corporate employees are expected to be professionally dressed and to convey a positive company image. Listed below is appropriate attire for both men and women. Women Dress code for women is: • Skirts or dresses no shorter than three inches above the knee when standing. • Dress pants, business casual pants or khakis with no more than four pockets. • Spandex, yoga pants or leggings may only be worn with a skirt or dress no shorter

than three inches above the knee when standing. • Dress shirt with collar, blouse or sleeveless top that reaches the end of your shoulders. • Sweaters, vests, coats or business jacket. • Pumps, professional sandals, dress shoes or flats with a hard sole.

Men Dress code for men is: • Dress pants or slacks. • Khakis with no more than four pockets. • Professional belt. • Long sleeve or short sleeve button down and collared shirts. • Shirts must be tucked in. • Dress or business casual shoes with socks.

Both men and women are encouraged to wear comfortable shoes when expected to work. Shifts range from three to twelve hour shifts. You will be standing for the majority of your shift so dress appropriate and conformably. Silverleaf does not want its employees to be fatigued the next day if they work next day repeatedly.

Appearance and Grooming

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Grooming and Appearance Good personal hygiene and grooming are absolutely essential. Employees should avoid excessive perfume, cologne and other aromas. Hairs, beards and moustaches must be neatly trimmed and appropriate to our business. Extreme hairstyles or colors are not appropriate for business. Extreme jewelry, visible radical piercing and tattoos and other similar “body adornments” are not allowed and/or must not be visible. Special Dress Standards As designated by Management, specified dress standards may be required of employees in some positions. Employees who travel outside the office on company business are expected to adhere to all established dress standards. Prohibited Attire Extreme, immodest or revealing attire is not permitted. Prohibited attire includes: • Shirts or dresses shorter than three inches above the knee when standing. • Ragged, torn, soiled or “skin tight” clothing. • Revealing tops of any kind:

o Low cut o Tank tops that do not reach the end of the shoulder o Off the shoulder o Open back o Sweat shirt o Strapless o Backless o Spaghetti strap o Midriff o See through or o Extremely tight.

• T-shirts, except Silverleaf shirts or t-shirts worn under another blouse, shirt or jacket. • Shorts, skorts, sweat pants, workout clothing, wind suits or warm up suits. • Leggings or stirrup pants • Hoodies, sweatshirts or casual zip-up jackets. • Hats, caps or berets. • Flip-flops, gladiator flats or ballerina slippers.

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Attendance and Dependability Absenteeism and tardiness burden co-workers disrupt business operations and reduce the quality of customer service. Therefore, good attendance, punctuality and dependability are required of all employees. Attendance is tardiness problems reduce an employee’s opportunity for advancement and will result in corrective action up to and including termination. Company Expectation Employees are expected to be at work and to return from breaks as scheduled. Employees are also expected to be at their workstations, performing assigned work during all work hours, to work any assigned overtime and are not permitted to leave work before their scheduled quitting time. Event Location Information Employees are encouraged to ask their manager where the events will be held ahead of time. Silverleaf has experienced the problem of employees not knowing where the events are being held or where to park. Managers have the duty of telling the employees: • Where the event is being held. • Where to park. • What attire to wear if the event has a theme to it.

Do not be one of the new employees that arrive late because they did not know where to go or paid for parking when there was free parking available. Notification of Absence/Tardiness Each employee is required to notify their Manager if they will be absent or tardy. Such required methods of notification include: • Prompt Notice

Employees are expected to give their Managers as much advance notice as possible of anticipated tardiness, absence or of the need to leave early. Employees should call their Manager to explain the reason for the absence or tardiness and when they will return to work. Managers should be personally notified on a daily basis unless a return to work day has been established.

• Personal Notification

Leaving a voicemail or having someone call for the employee does not satisfy this requirement. Another Manager or Human Resources should be notified if an

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employee is unable to reach his/her Manager. Notifying another employee is not acceptable. Employees should also maintain regular contact with their Manager during any extended absences.

• Absent without Notice

As allowed by law, an employee may be considered as having voluntarily resigned if he/she is absent from work one day without notice. An employee will be considered as having voluntarily resigned if he/she is absent from work for three days or fails to return from leave within three days of the date specified.

Make-up Time Management’s permission is required for employees to make up missed work time. Make up work should occur very infrequently, may not be used to compensate for frequent tardiness or absences and may not be allowed if it would cause the employee to work overtime.

Food and Meals Food or any kind of eatables will not be provided to workers. It is the employee’s responsibility to eat before they go into a shift. Breaks are permitted for the employees to go and purchase food if available at the event but Management is only to provide water to the employees. It is recommended that you either eat before the beginning of your shift or bring small snacks to eat during your break. If snacks are being eaten, make sure you are away from the visible are of the booth. Silverleaf wants to keep a professional image and cannot do so if its employees are eating in front of the public.

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Communication and Information Systems The communication systems are provided for business purposes and are company property. Examples of company communication systems are: • Information • Files • Messages • Texts • Data

o Created o Stored o Transmitted or o Received.

All these examples are considered company property if used with company equipment. Consequently, the company may intercept, monitor, read, review, copy and disclose any communication or files as business needs require, as allowed by law. Messages, texts or files created, sent or received are not an employee’s private property. Employees should have no ownership or privacy expectations regarding communications or data sent over company information systems. All communications both inside and out the company should be professional, business-like and courteous. Communications that are strictly prohibited consist of being: • Offensive • Discriminatory • Sexually explicit • Disruptive or • Harassing.

Improper solicitations, such as those used for personal, commercial, religious, political, charitable, union or other non-business causes are also prohibited as allowed by law. Improper use of systems and equipment may subject an employee to loss of communication privileges and corrective action, including termination. Our policies are not intended to interfere with your legal right to participate in protected communication with other employees regarding the terms and conditions of your employment.

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Telephone/Cellular Phone Personal phone calls and text messages interfere with productivity and may be distracting to others. Therefore, personal use of the phone, regardless of the phone used, should be minimal. Employees should ensure that family and friends understand company policy. Personal long distance calls may not be charged to Silverleaf and must be placed collect or not billed to the company. Protecting confidential information and employee privacy rights requires restrictions on camera phones. Such phones may not be used in work areas, restrooms and exercise rooms. They are permitted in break areas if appropriately used. Email and Voicemail Extra care should be taken to ensure that emails, voicemails, blogs and other communications are professional, appropriate and received by the correct individual. Only company email should be used when sending company information. Remember that deleted messages can be recreated, so be careful what you say and write. A few examples of prohibited email use include: • Sending or receiving sexually oriented messages or images. • Sending or receiving sexual, ethnic, gender related or other inappropriate jokes. • Violating copyright laws, gambling or engaging in any criminal or prohibited activity. • Searching for outside employment. • Sending or receiving span and chain letters. • Sending or receiving emails that could damage the company’s reputation or operations. • Sending confidential, propriety or sensitive information unless authorized by Management.

Social Networking Unless requested or approved by Management, employees should not use company resources to participate in personal social networking, blog reading or similar activities during work hours or with company equipment. After work hours, activity on social networking sites shouldn’t negatively affect Silverleaf or its employees. Company email addresses should not be used and you should not identify yourself as a member of our organization in personal postings. Only members who are authorized to do so may speak on behalf of our organization to customers and the public. Employees should not comment on such things as: • Financial • Employee and sales information • Customer or vendor data • Business performance • Plans or strategies and • Other information not generally available to the public.

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Employees should not make derogatory or disparaging comments about any aspect of the company. Our policies are not intended to interfere with your legal right to participate in protected communication with other employees regarding the term and conditions of your employment.

Confidentiality Maintaining confidentiality is a condition of employment. Employees are responsible for acting with complete professionalism when discussing company business or handling company information. Information, files, documents, records, plans and other material relating to the company, its employees and customers is considered confidential. Unless authorized to do so, employees should not use social networking either at work or at after work to comment on or discuss information deemed confidential, propriety or which is not generally available to the public. The company’s general business affair should not be discussed with anyone outside the organization except required in the normal course of business. Inappropriate release of confidential information, either internally or externally will result in corrective action, including termination. Our policies are not intended to interfere with your legal right to participate in protected communication with other employees regarding the terms and conditions of your employment.

Drugs and Alcohol Our company has a strong commitment to maintaining a drug-free, healthy and safe workplace. Consequently the following examples of acts are strictly prohibited: • The use, possession, purchase, sale or distribution of any illegal drug, alcohol or non-

prescribed controlled substance. • Being under the influence of alcohol, illegal drug drugs or controlled substances

which impair judgment, job performance or which threaten employee safety. • The use, possession, purchase, sale or distribution of any legal prescription or over-

the-counter drug in a manner inconsistent with the law or being under the influence of such drugs if behavior, performance or safety is impaired.

These activities are serious violations of company policy and will subject employee to termination. Off-the-job use, possession, sale, etc. of alcohol, illegal drugs or controlled substances also subject an employee to corrective action, including termination. Additionally, Silverleaf reserves the right to conduct drug and medical tests on an

Confidentiality

Drugs and Alcohol

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employee or applicant at any time, unless prohibited by law. Refusal to take the test will result in termination

Employee Conduct and Work Rules Rules and standards regarding employee behavior are necessary for the efficient operation of the company and for the benefit and safety of all employees. All employees are expected to meet established performance and conduct requirements. While it would be impossible to compile complete lists of expected behavior and/or unacceptable conduct subject to corrective action, the following guidelines provide a general outline of expectation. Performance Employees are expected to perform their jobs efficiently, effectively and in accordance with established procedures. Examples of unacceptable performance include: • Failure to meet quality or other performance standards and deadlines. • Refusal to work overtime or failing to accept work assignments. • Insubordination or failing to follow Managers directions. • Unprofessional conduct or rudeness to customers, co-workers, guests or owners. • Violation of safety rules.

Attendance Employees are expected to arrive at work as scheduled and or return from breaks promptly. Examples of attendance misconduct include: • Unexcused or excessive tardiness or absences. • Leaving work early or leaving company premises without permission.

Honesty and Integrity Employees are expected to demonstrate honesty and professionalism in the conduct of all business activities, including observance of the spirit as well as the letter of the law. Additionally, employees are responsible for reporting any illegal or unethical actions of employees and non-employees to Management. Behavior Employees are expected to conduct themselves professionally and to meet established standards of behavior. Examples of unacceptable employee behavior include:

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• Violation of dress and grooming standards or any company policy or procedure. • Under the influence of illegal drugs and/or alcohol. • Possession, use or sale of alcohol or illegal drug. • Testing positive for illegal drugs. • Using offensive, foul or abusive language. • Fighting with or threatening employees or non-employees.

The expected conduct and work rules outlined above are merely examples of the types of behavior that may subject an employee to corrective action up to termination. Silverleaf, as an at-will employer, maintains complete discretion over corrective action and termination policies and practices. Personal Property, Searches and Inspection Protecting Personal Property Employees will be assisted in protecting their personal property while at work; however, the company does not assume responsibility for theft, damage or disappearance of such property. Consequently, employees should not keep valuable property or large amounts of cash at work. Good judgment should also be used when displaying personal items. Employees should ensure that such items are professional and do not hamper company functions or sales effort. Searches and Inspection To ensure workplace security and safety, all company facilities, company property and employee’s personal property on company premises are subjected to inspect without notice and upon request. Employee Responsibility All employees are responsible for assisting with the security of company property and work areas and any related investigations. Employees should immediately notify Management of any unfamiliar or suspicious persons in their work areas and offer assistance or escort such persons as is appropriate. Safety Safety is the responsibility of each employee. Observance of safety rules and use of safety devices are conditions of continued employment. Such safety rules include:

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• Reporting to a Manager or Human Resources: o At once or by the end of the workday. o Any work-related injuries and illnesses, no matter how minor. o Unsafe conditions or practices. o All suspicious persons, potentially violent situations, or persons possessing

guns or other weapons. • Using only tools and equipment which the employee is fully qualified and authorized

to use and using all safety equipment, prescribed adaptive devices, and procedures. • Providing safety suggestions. • Restricting and monitoring visitor access to company facilities. • Observing the company ban on possession of deadly weapons on company premises

including any vehicle in the parking lot. The company will follow the law in the states that conflict with this policy.

Employees who violate company safety policies may be subject to corrective action up to and including termination.

Solicitation and Distribution Activities In order to minimize work interruptions and to maintain productive business operations, employee solicitation and distribution activities are restricted on company premises. Such activities are prohibited during working time, in work areas, on company bulletin boards, and throughout company communication systems, including e-mail. The sale of goods and services is prohibited. Additionally, off-duty employees may not return to company work areas, except as customers. At management’s discretion and as required by law, limited exceptions to this policy during non-working time may be allowed such as charity fund raising drives, employee gift solicitations, and business-related sales and service presentations. All posted or distributed information requires the prior authorization of Human Resources.

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Work Place Violence Employee and customer safety and security are important to us. To promote a safe workplace and to reduce the risk of violence, all threatening, aggressive and violent behavior, including bullying, verbal or written threats and physical attacks are prohibited. No employee may possess any weapon on company premises, including in any vehicle in the parking lot. This weapon ban includes employees legally licensed to carry weapons. In states where law conflicts with this policy, the company will follow state law. Employees who violate this policy will be subject to termination. All potentially threatening, dangerous, or suspicious situations should be immediately reported to the employee’s Manager, Human Resources, or another member of Management. No employee may be discriminated or retailed against because he/she has reported any potential workplace threat or violence or has participated in a related investigation or proceeding. Responsibilities are your duty and lead to better earned benefits. The next chapter explains the benefits you can earn as an employee at Silverleaf.

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Chapter 7—Compensation and Benefits This chapter will introduce the benefits that come with the

job. This section consists of the following information:

Insurance Benefits Overtime Payroll Procedures Working Hours.

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Insurance Benefits Eligible employees are offered various benefits. Information summarizing these benefits is provided to participating employees periodically and is required by law. The programs outlined below are describes in detail in official documents located in Human Resources. These documents are controlling and should be reviewed when specific questions arise. Benefit plans involving current, past or retired employees may be changed or eliminated at any time at the company’s sole discretion.

Overtime Employees may occasionally be required to work overtime hours to meet business needs. Management will attempt to schedule overtime fairly and consistently, however advance notice may not always be possible. Failure to work overtime or working overtime without authorization may result in corrective action up to termination. Calculating Overtime Nonexempt full-time and part-time employees are eligible for overtime pay for work performed beyond 40 hours per week. Exempt employees are not eligible to receive overtime pay. Prior approval of a Manager is required before any non-exempt employee may work overtime. Work beyond 40 hours per week will be paid at one and one-half times the employee’s hourly rate of pay. Overtime is calculated based on a single workweek beginning at 12:01 a.m. on Monday and ending at midnight on Sunday.

Payroll Procedures Silverleaf seeks to provide fair, competitive wages and salaries that recognize each individual’s unique contribution to the overall goals of the organization. Salary increases, when granted are based on: • Merit • Job performance • Position • Market conditions and • Company financial health.

Overtime

Payroll Procedures

Insurance Benefits

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Silverleaf also seeks to provide timely and accurate payment to employees in compliance with all applicable laws. Employees who have questions or concerns regarding any compensation programs or policies are encouraged to contact their Manager or Human Resources. Employees who believe that improper deductions or mistakes have been made in their paychecks should inform Human Resources immediately. Salary policies and procedures are made in company’s sole discretion and may be unilaterally modified or revoked at any time. Pay Procedures Salaried exempt and non-exempt employees are paid semi-monthly on the 15th and last day of each month. Hourly employees are paid weekly each Friday. In general, commissioned sales personnel and temporary employees are also paid weekly. Paycheck Distribution Paycheck will be given personally to employees or, with an employee’s permission, deposited directly into an employee’s checking or savings account id applicable. Arrangements for mailing or pick up by another person must be made in advance and in writing with Human Resources. Under no circumstances will the company release any paychecks early and salary advances may not be made. Lost Checks Payroll must be notified in writing as soon as possible if a paycheck is lost so that a replacement check can be issued. However, the company is not responsible for a lost check if payment cannot be stopped. Time Records To ensure that employees are actually paid and that we are in compliance with applicable law, complete records of employee hours worked must be kept. Non-exempt employees are required to record actual time worked including starting and ending time and time off for lunch. The use of earned leave time must also be recorded on official time forms. All overtime hours require prior approval of Management. Exempt employees are not required to record actual time worked but must account for daily attendance and record earned leave used.

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Working Hours As allowed by law, the company reserves the right to schedule work hours as business and organizational needs require. Daily and weekly work schedules may be changed at the complete discretion of the company to meet varying job responsibilities and business conditions. While attempts will be made to establish steady and predicable hours, there are no guarantees of minimum or maximum hours and lack of notice is not an acceptable reason for refusing work. Lunch and Rest Breaks Full-time nonexempt employees are generally scheduled to work eight consecutive hours daily with a required, unpaid one hour lunch break. The length of the break may be changed if business needs require. Part time employees who work more than half of a day wills also receive a meal break. Full time non-exempt employees receive two paid 15 minutes rest breaks in each eight-hour day. Employees who work through rest breaks may not leave work early and will not be paid additional compensation. Exempt employees are entitled to breaks as appropriate. With compensation and benefits explained, Chapter 8 will give you a run through of the acceptable excuses to miss work.

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Chapter 8—Time Off This chapter will introduce you to the reasons for days off.

This section consists of the following information:

Funeral Leave Holidays Jury, Witness and Voting Leave Leaves of Absence Sick Leave Vacations.

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Funeral Leave Eligibility Full time employees who have completed their Initial Employee Period are eligible to use funeral leave to attend the funeral and make any unnecessary funeral arrangements associated with the death of an immediate family member. Part-time employees are not eligible for paid funeral leave but may, with Management’s approval, use unpaid leave to attend a funeral or handle family affair. Time Allowed Funeral leave of up to three hours with pay is provided in cases of death in the immediate family providing such a length of time is required. Approval by Management An employee requiring funeral leave should inform Human Resources and his/her Manager. In all instances, funeral leave requires Management’s approval. Extra Time If more than three days of funeral leave are needed because of travel time or extenuating circumstances, an employee may use vacation leave or unpaid time off, if approved. Accrued sick leave may not be used for funeral leave.

Holidays Silverleaf recognizes the importance of leisure time and will observe holidays as annually designated by Management. Schedule Management will determine the holiday schedule on an annual basis. Currently the following holidays are observed: • New Year’s Day • Memorial Day • Labor Day • Thanksgiving Day • Christmas Day.

Holidays

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Holidays observed for all offices except Sales, Telemarketing and marketing include: • Independence Day • Day after Thanksgiving.

Working Holidays Business necessity may require scheduling employees to work on company holidays. Employees required and approved to work on scheduled holidays will receive additional personal holidays to be used, with Management’s permission, at any time during the year. Other Personal Time Off The company allows employees personal time off for religious observance, events of personal significance or for business that cannot be taken care of outside of work hours. Employees needing personal time off may use: • Earned vacation day or • Unpaid time off in limited circumstances.

Jury, Witness and Voting Leave Full-time employees who have completed their Initial Employment Period will be paid at their regular base rates for up to 14 days of jury or witness duty in any calendar year. In addition to the 14 days, exempt employees are also paid for any days during the weeks they actually perform work. Paid jury and witness leave are in addition to paid vacation or other leave. Part-time and full-time employees who have not completed their Initial employment periods do not qualify for paid jury leave. In those instances, or where leave extends beyond the paid jury leave period, employees may take unpaid leave or use earned vacation or personal leave as appropriate. Exempt employees will be paid as required by law. Employees must immediately provide Human Resources with copies of court notices. Jury or witness pay and leave will not be authorized without prior documentation. Employees are expected to check daily and advise their Manager of the status of court proceeding and availability for work.

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Time off to Vote Normally, Silverleaf expects its employees to exercise their voting privileges at times other than their regular work hours. However, as required by state law, employees whose work schedules do not allow them opportunity to vote in elections may receive time off to vote. Voting time must be scheduled at the beginning or end of the employee’s work day and require Management’s authorization. Time off to vote should be requested at least one day prior to Election Day to minimize disruption of operations.

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Leaves of Absence Family and Medical Leave Family and medical leaves of absence will be granted in accordance with the Family and medical Leave Act (FMLA) and applicable state or other law. The law is complex, so employees are encouraged to contact Human Resources with their questions and if they anticipating needing to take leave. Employees are eligible for FMLA leave if they: • Worked for Silverleaf for at least a year. • Worked for at least 1,250 hours during the previous year. • Worked at a site with 50 or more employees or where 50 or more employees are

located within 75 miles of the work site.

An eligible employee may take Family and Medical Leave to care for a • Biological or adopted child. • Foster child • Step child • Legal ward or • For a child the employee is caring for in place of that child’s parent.

The child must be under 18 years of age or can be 18 or older if not able to care for themselves because of a mental or physical disability. FMLA leave may be taken for any of the following reasons: • Parent Leave

Parent leave is the birth of an employee’s child, the care of a newborn child, the placement of a child with an employee for adoption or foster care to care for the newly placed child.

• Family Medical Leave Leave permitted to care for an employee’s spouse, child or parent with serious health conditions.

• Employee Medical Leave

Leave permitted to care for an employee’s own serious health condition that makes the employee unable to perform one or more of the functions of his or her job.

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• Military Active Duty Leave

Military leave are situations that occur because a covered spouse, child or parent is called to active military duty in a foreign country in any branch of the military or has been notified of a call to active duty.

Military Leave Full and part time employees are eligible for military leave. Temporary employees are generally excluded. The following guidelines provide a general summary of military rights and responsibilities. Military service can be voluntary or involuntary and includes: • Active duty • Active duty for training • Initial active duty for training • National Guard duty • Absence from work for a duty fitness exam and • Funeral honors duty.

Uniformed Service includes: • Army • Navy • Marine Corps • Air force • Coast Guard • National Guard • Reserve Units • Public Health Service Corps and • Other people designated by the president.

To qualify for an approved leave, an employee must, where possible, give notice to anticipate military service. Upon receipt of orders for active or reserve duty, an employee should notify the Manager and Human resources immediately. Personal and Other Leaves of Absence Silverleaf may grant a leave of absence to eligible employers who require time off from work to fulfill personal obligations. Such leaves are generally unpaid. Management’s approval of personal leave will be based upon the employees work record, the reason for the request and business need.

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Full time employees are eligible for non-FMLA personal leaves of absence if they have: • Worked for Silverleaf for at least a year prior to leave request. • Have exhausted all paid vacation and personal leave.

Part time employees may be eligible for leave in exceptional circumstances. Leaves of absence may be granted for personal reasons, educational purposes, community services or religious purposes. The length of a personal leave of absence is a Management’s discretion, however such leaves may generally not exceed 30 days. Request for leaves must be submitted in writing to Human Resources for reviewing by the employees Manager and Management. All leave requests are completely subject to managerial discretion.

Sick Leave It is critical to our operations that every employee be dependable and on the job. However, Management recognizes than an employee or immediate family member may occasionally be temporarily disabled by injury or illness. The sick leave policy is designed to provide protection to eligible employees against loss of income during unavoidable absences. Eligibility Full-time employees who have completed their Initial employment Periods are eligible for paid sick leave. At Management’s discretion authorized absences without pay may also be granted to full time employees who have no accrued leave available. Part-time and temporary employees are not eligible for paid sick leave but may take unpaid absences as approved by Management. Use of sick Leave Sick leave is intended to provide income protection in the event of the actual disabling illness or injury of the employee or member of his/her immediate family. Sick leave may not be used for any other absence. Written confirmation of an employee’s condition may also be required in instances where sick leave is requested immediately preceding or after a vacation or holiday and if abuse of sick leave is suspected.

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Vacations Time away from work to rest, relax and pursue personal interests is important. Therefor paid vacation days will be provided to eligible employees. Eligibility for Paid Vacation Days Full-time salaried and hourly employees are eligible to accrue paid vacation. Part-time employees and temporary employees are not eligible to accrue paid vacation days. Commissioned sales personnel receive the same vacation as full-time employees; however they will not receive pay for vacation time taken. Accrual Vacation time accrues based on actual time worked and does not accrue during unpaid leaves, workers compensation or certain other disability leaves or layoffs. Vacation days accrue based upon length of service with Silverleaf and may not be taken until they are earned in accordance with the following schedule on table 1.

Length of Service Vacation Days/Year

0 to a year 0 1-4 years 10 days 5-9 years 15 days

10 or more years 20 days Table 1

Carry Over Employees must use their earned vacation time during the year following the year in which it is earned. Vacation days may not be carried forward into the following year. Scheduling Vacation time can be scheduled as soon as it is earned and should be requested as early in advance as possible. All requests are subject to management approval based upon operating requirements and staffing considerations. Generally, vacation time must be taken in at least half day increments and may be scheduled up to two week periods. Pay for Used Vacation Employees must use their earned vacation by the end of the year following the year in which is earned. No payments will be made for unused vacation. Terminating employees will be paid for all earned vacation time.

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Holidays During Vacation A company holiday that occurs during a scheduled vacation will not be counted as a vacation day. In such situations, an employee will be given an alternate day off which may be added to the present vacation period or, with management’s approval, taken a later day. With time off explained, the next chapter will explain the policies of paying back what employees spend while on duty for Silverleaf.

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Chapter 9—Expenses and Reimbursement This chapter will introduce you to the expenses that you

may come across while working for Silverleaf. This section

consists of the following information:

Control of Expenses and Reimbursement.

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Control of Expenses and Reimbursement Some of the products and services frequently used may seem inexpensive and insignificant, but remember that every expense affects Silverleaf’s profits. Employees should play a string role in controlling expenses of products and services used in business related activities. All expenses must be approved in advanced by Management and itemized receipts or evidence of expenditures must be submitted with all reimbursement requests. In limited circumstances, employees may be given cash advances to cover reasonable, anticipated expenses. Employees should contact their Manager for detailed information and procedures for receiving reimbursement. Abuse of Expense Policy Employees who abuse the expense policy including falsifying or exaggerating expenses and incurring unnecessary and excessive expenses will be subjected to corrective action up to and including termination. Unnecessary, unauthorized and/or unreasonable expenses will not be reimbursed and will be the personal responsibility of the employee. Business Travel Employees will be reimbursed for all actual and reasonable travel expenses, including transportation, meals and lodging costs provided such expenses are incurred in the authorized conduct of company business. All business travel must be approved in advance and employees are responsible for securing reasonable and cost effective travel arrangements. Employees should contact their manager for travel guidelines and reimbursement procedures. Car Expenses Employees may be reimbursed for use of their own cars on company business. All vehicle reimbursement requires prior authorization from Management and must meet established reimbursement guidelines and procedures. Employees should contact their Manager with their questions or for detailed information.

Control of Expenses and Reimbursement

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Index Absence ........................................................................................................... 21, 26, 39, 41 Accrual .............................................................................................................................. 42 Acknowledgments............................................................................................................. 50 Appeal ............................................................................................................................... 16 Appearance ....................................................................................................................... 24 Attendance .................................................................................................................. 25, 31 Attire ........................................................................................................................... 24, 25 Behavior ...................................................................................................................... 16, 31 Benefits .................................................................................................... viii, 14, 22, 34, 35 Breaks ............................................................................................................................... 36 Carry Over ........................................................................................................................ 43 Classification....................................................................................................................... 9 Communication ................................................................................................................. 28 Compensation ............................................................................................ viii, 5, 18, 20, 34 Conduct ............................................................................................................................. 30 Confidentiality ............................................................................................................ 11, 30 Corrective Action ........................................................................................................ 11, 17 Dependability .................................................................................................................... 25 Discretion .......................................................................................................................... 17 Distribution ................................................................................................................. 33, 36 Eligibility .............................................................................................................. 19, 38, 42 Emergency Closing ........................................................................................................... 17 Event Location .................................................................................................................. 26 Exempt .............................................................................................................. 9, 35, 36, 39 Exit Interview.................................................................................................................... 21 Expenses .............................................................................................................. viii, 44, 45 Extra Time ........................................................................................................................ 38 Full-time ............................................................................................................ 9, 36, 39, 42 Grooming .......................................................................................................................... 24 Harassment .......................................................................................................................... 6 Holidays ...................................................................................................................... 38, 43 Hours ................................................................................................................................. 36 Initial Employment Period ............................................................................................ 9, 39 Leave ......................................................................................................... 18, 38, 39, 40, 42 Leaves ......................................................................................................................... 39, 41 Leaving ................................................................................................................. 26, 27, 31 Light Duty ......................................................................................................................... 20 Make-up Time ................................................................................................................... 26 Mediation .......................................................................................................................... 16 Moonlighting..................................................................................................................... 19 Non-Discrimination .......................................................................................................... 13 Notification ....................................................................................................................... 26 Overtime ........................................................................................................................... 35

Index

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Part-time ............................................................................................................ 9, 38, 39, 42 Paychecks .......................................................................................................................... 21 Payroll ......................................................................................................................... 35, 36 Performance ................................................................................................................ 17, 31 Personal ......................................................................................... 10, 11, 26, 28, 32, 39, 41 Policy ................................................................................................................................ 45 Procedures ............................................................................................................. 17, 20, 35 Property ............................................................................................................................. 32 Records ............................................................................................................ viii, 8, 10, 36 Rehire ................................................................................................................................ 13 Reimbursement ........................................................................................................... 44, 45 Resignation ....................................................................................................................... 21 Responsibilities .......................................................................................................... viii, 18 Responsibility ................................................................................................. 17, 23, 32, 37 Return to Work ................................................................................................................. 20 Safeguarding ..................................................................................................................... 11 Safety ................................................................................................................................ 32 Schedule ............................................................................................................................ 38 Solicitation ........................................................................................................................ 33 Temporary ..................................................................................................................... 9, 40 Termination ............................................................................................................. 5, 17, 21 Time off ............................................................................................................................ 39 Time Off............................................................................................................... viii, 37, 39 Travel ................................................................................................................................ 45 Vacation ................................................................................................................ 21, 42, 43 Vacations........................................................................................................................... 42

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I have received a copy of the Employee handbook and have been given the opportunity to ask questions about it. I understand that the Handbook outlines the Silverleaf’s benefits, policies and employee responsibilities. I agree to familiarize myself with the information in this Handbook, ask questions of my manager and Human Resources when necessary and will comply with the policies and procedures summarized. I understand the information in this Handbook is intended to acquaint employees with general policies and principles and is not a contractual commitment by the company concerning the terms of employment, benefits or other matters. I realize that I am an employee-at-will, am employed for no specific period of time and that employment may be terminated by the company or myself, at any time, for any reason, with or without cause and with or without prior notice. This employment-at-will status cannot be altered or modified by a written employment contract signed by the Chief Executive Officer of Silverleaf. I also understand that as a condition of employment and to ensure workplace security and safety, all company facilities, property and employee’s personal property may be inspected upon request and/or with or without permission or advance notice. I consent to such monitoring and inspection and understanding that I cannot expect personal privacy when using company equipment. As required, Management at its complete discretion, may modify or eliminate these summarized policies and procedures or any policy, practice or procedure at any time without notice. I realize I will be responsible for complying with future changes in company policies, practices and rules. I also acknowledge that no employee or company agent has the authority to allow me to engage in any conduct or behavior that is inconsistent with the Handbook. Please sign and date this receipt and return it to Human Resources for placement in employee files. Print Name: ______________________________________ Signature: ______________________________________ Date: ______________________________________ Please keep in handbook for your records

Handbook Acknowledgments

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