To preserve the ability to meet company needs under changing conditions, Timberville Electronics may modify, augment, delete, or revoke any and all policies, procedures, practices, and statements contained in this manual at my time without notice. Such changes shall be effective immediately upon approval by management unless otherwise stated.

Timberville Electronics does not assume and hereby disclaims my liability to any party for any loss or damage caused by errors or omissions in this personnel policy book, whether such errors or omissions result from negligence, accident, or any other cause. Any discrepancies should be immediately brought to the attention of the President.

Equal Opportunity is Timberville Electronics policy. It is Timberville Electronics policy to select the best qualified person for each position in the organization. No employee of Timberville Electronics shall discriminate against my applicant for employment or any fellow employee because of race, creed, color, religion, sex, national origin, ancestry, or age. No employee of Timberville Electronics shall discriminate against any applicant or fellow employee because of physical or mental handicap or because of the person's veteran status. This policy applies to all employment practices and personnel actions.

Timberville Electronics provides equal employment opportunity to all applicants on the basis of demonstrated ability, experience, and training. As positions became available within the company, prior to outside recruitment, the Personnel Director and hiring manager shall determine the availability of qualified candidates within Timberville Electronics. Recruitment may be conducted through schools, employment agencies, and company advertising. Contact the Personnel Director to discuss the most appropriate method of recruitment. The company bulletin board will display all current openings. This policy excludes those employed through temporary agencies or "job shops."

Timberville Electronics provides equal opportunity to all applicants on the basis of demonstrated ability, experience, training, and potential. Qualified persons are selected without prejudice or discrimination as stated in the company's Equal Opportunity policies.

The employment requisitions, initiated by the (hiring supervisor or department manager), will define the job-related tasks and qualifications necessary to assume the position. The defined tasks and stated qualifications will be the basis for screening applications. The personnel department will conduct structured initial interviews limited to job-related questions to assess the candidates' experience, demonstrated ability, and training. The telephone may be used for these initial interviews. Pre-employment tests demonstrated to be job-relevant and valid according to accepted professional practices may be used. Such tests are to be administered only by trained personnel in the prescribed professional manner. All interviewed applicants will be asked to take the test. After initial interviews and testing, the hiring supervisor or department manager will conduct interviews with the candidates he or she selects with the concurrence of the personnel department.

Before extending an employment offer and upon the applicant's prior agreement that inquiries may be made, at least two applicant references must be checked. Inquiries are to be made in a professional manner requesting only factually verifiable and job-related information. The reference data is used only as supplemental information for the hiring decision.

After candidate interviews, verification of employment history, and reference inquiries, the hiring manager is responsible for the employment offer. Before a verbal offer is made, the personnel department must be consulted and must give approval. The hiring manager may make the offer personally or may delegate this responsibility to the personnel department.

After the verbal offer has been made and the candidate has agreed to the essential terms of the offer (typically position, employee classification, salary or rate, and starting date), a written offer may be prepared by the personnel department and submitted to the candidate in person or by mail. The written offer will confirm the verbal offer and will include the essential terms of the verbal offer as agreed to by the candidate. The candidate will be required to sign and date an acceptance of the written offer which will state as follows: "The undersigned accepts the above employment offer and agrees that it contains the terms of employment with Timberville Electronics and that there are no other terms express, or implied. It is understood that employment is subject to verification of identity and employment eligibility."

The verbal or written offer must never express or imply that employment is "permanent," "long-term," of a specific duration, or words of similar meaning. An exception my be made where a temporary position of known duration is to be filled. Employment may be made contingent upon certain job-related factors such as obtaining a specific state or federal license or security clearance when appropriate or desirable.

Once the candidate has accepted the employment offer, she or he will be required to provide documentation of identity and employment eligibility in accordance with federal law. The I-9 form shall be used for this purpose.

Timberville Electronics will not allow any form of sexual harassment or my such conduct that has the purpose or effect of interfering with an individual's work performance or creating an intimidating, hostile, or offensive work environment.

Such conduct, when experienced or observed, should be reported to the supervisor/manager or personnel department. The (PERSONNEL DEPARTMENT) will conduct an investigation and will be required to report the findings to the (PRESIDENT'S) office or his or her appointed representative. The privacy of the employee under investigation shall be respected at all times.

Any intentional sexual harassment is considered to be a major violation of company policy and will be dealt with accordingly by corrective counseling and/or suspension or termination depending upon the severity of the violation.

It is the intent of Timberville Electronics to provide a work environment free from verbal, physical, and visual (signs, posters, or documents) forms of sexual harassment. All employees are asked re be sensitive to the individual rights of their coworkers.

Medical evaluations may be required prior to the time of employment to ensure that a prospective employee is capable of performing his or her job-related tasks. Such an evaluation will be conducted only if a reasonable question exists concerning whether the applicant would endanger his or her health or safety or the health or safety of others in performing assigned tasks. The medical evaluation will be at company expense by a physician chosen by the company. The prospective employee will be required to sign a written release of this information to the company. Timberville Electronics will treat as confidential the information contained in a report of medical evaluation.

Timberville Electronics recognizes that substances such as alcohol and drugs are used by individuals, sometimes to an extent that their abilities and senses are impaired. Our position regarding substance abuse is the same whether alcohol, marijuana, illegal drugs, prescription drugs, or controlled substances are involved ("substances").

This policy is implemented because Timberville Electronics believes that the impairment of my Timberville Electronics employee due to his or her use of substances is likely to result in the risk of injury to other employees, the impaired employee, or to third parties, such as customers or business guests.

"Impairment" or "being impaired" means that an employee's normal physical or mental abilities, or faculties, while at work have been detrimentally affected by the use of substances.

The employee who begins work while impaired or who becomes impaired while at work is guilty of a major violation of company rules and is subject to severe disciplinary action. Severe disciplinary action can include suspension, dismissal, or my other penalty appropriate under the circumstances. Likewise, the use, possession, transfer, or sale of any substance on company premises or in any Timberville Electronics parking lot, storage area, or job site is prohibited; and violations are subject to severe disciplinary action.

Employees who are taking prescription drugs are under a duty to report this to their supervisor. This is for the protection of the employee and for safety purposes in case of an adverse reaction to the drug while at work, or so the employee is not falsely accused of taking an illegal substance.

When an employee is involved in the use, possession, transfer, or sale of a substance in violation of this policy, Timberville Electronics may notify appropriate authorities. Such notice will be given only after such an incident has been investigated and reviewed by the employee's supervisor, the personnel director, and the (PRESIDENT).

Timberville Electronics is aware that substance abuse is a complex health problem that has both physical impact and an emotional impact on the employee, his or her family, and social relationships. A substance abuser is a person who uses substances, as defined above, for non-medical reasons, and this use detrimentally affects job performance or interferes with normal social adjustments at work. Substance abuse is both a management and a medical problem.

A supervisor or manager who suspects a substance abuse case should discuss the situation immediately with his or her manager. Because each case is usually different, the handling and referral of the case must be coordinated with the manager and the personnel director.

Timberville Electronics is available to assist an employee who requests help with substance abuse. The employee must ask for help. The company will not require it. Should disciplinary action be pending against an employee who asks for help, Timberville Electronics will assist to the extent of its resources assuming that the employee remains employed. Nonetheless, regular disciplinary action will proceed.

If the employee is terminated, Timberville Electronics will be unable to continue any program. Voluntary, successful participation in a recovery or rehabilitation program by an employee may be a mitigating factor in any disciplinary action depending on the facts and circumstances of each individual case. In some cases, disciplinary action may be suspended, or the employee placed on probation pending a successful completion of a recovery program.

Employees who are placed on a rehabilitation program because of performance or behavior problems due to substance abuse are subject to dismissal for failure to successfully complete the program or change their performance or behavior.

Applicants who have a past history of substance abuse and who have demonstrated an ability to abstain from the substance, or who can provide medical assurance of acceptable control, may be considered for employment with Timberville Electronics as long as they are otherwise qualified for the position for which they are applying.

Management has chosen to adopt an alcoholic beverage policy in keeping with the concern for and the risks associated with alcohol use. Alcoholic beverages shall not be served or used on Timberville Electronics premises at any time. Alcoholic beverages have no part in and shall not be used in conjunction with any Timberville Electronics business meeting. Social Timberville Electronics activities, held off-premises and paid for on a personal basis are not affected by this policy.

If management considers it appropriate, light alcoholic beverages may be served at Timberville Electronics sponsored events held off premises and for purely social reasons. The event must be managed in good taste and with good judgment. No alcoholic beverages should be served at any Timberville Electronics event where children are present.

Timberville Electronics is concerned with its employee's privacy, especially where matters regarding medical and personal information are involved. As long as the information is not needed for policy or security purposes, Timberville Electronics shall maintain employee medical and personal information in confidence and release this information to authorized company personnel on a "need to know" basis. An exception to this policy is where the employee signs a release for the transfer of such information to designated persons or agencies.

No smoking wilt be allowed in the office area at any time. This policy is for the health and safety of all employees. Smoking will be allowed only in designated areas.

Your cooperation is requested, as this policy must be rigidly enforced to comply with the company health and safety requirements and to maintain prefer insurance coverage for our building.

Positions within the company are generally designed for full-time employees. In certain functions and during some seasons, work schedules and company needs my require the services of other than full-time employees. There are four classifications of employees at Timberville Electronics:

1. Full-time,
2. Part-time,
3. Temporary, and
4. Summer.

Full-time - An employee hired for an indefinite period in a position for which the normal work schedule is (40) hours per week.
Part-time - An employee hired for an indefinite period in a position for which the normal work schedule is at least 20 but less than 40 hours per week.
Temporary - An employee hired for a position for which the scheduled work week can range from less than 20 to 40 hours, but the position is required for only a specific, known duration, usually less than six months.
Summer - An employee hired only for the summer months (typically June through September) for a position for which the scheduled work week can range from less than 20 to 40 hours.

Part-time, temporary nor summer employees do not qualify for regular company benefits.

Provisions in federal law, i.e. the Fair Labor Standards Act, divide all employees into two categories, exempt and nonexempt, with respect to eligibility for overtime payment. They shall be defined as:

Exempt - An employee considered to be either managerial, administrative, professional or outside sales.

Nonexempt - An employee who devotes most of his or her hours in activities that are not managerial, administrative, professional or outside sales. '

An employee's anniversary date is defined as his or her first day on the job with the company. Performance reviews my be completed annually on or about the employee's anniversary date. A salary adjustment never automatically follows a performance review.

Employees who are re-employed by the company after termination will lose their original anniversary date for all purposes and be assigned a new date corresponding to their first day on the job after reemployment This policy shall not apply to layoffs or to an employee who was erroneously terminated for cause and later reinstated.

As a joint protection to the employee and the company, employees who have been absent from work because of serious illness or injury are required to obtain a doctor's release specifically stating that the employee is capable of performing his or her normal duties or assignments. A serious injury or illness is defined as one that results in the employee being absent from work for more than two consecutive weeks, or one which my limit the employee's future performance of regular duties or assignments. Timberville Electronics management shall ensure that employees who return to work after a serious injury or illness are physically capable of performing their duties or assignments without risk of re-injury or relapse. If the cause of the employee's illness or injury was job-related, the employee's supervisor/manager will make every reasonable effort to assign the returning employee to assignments consistent with the instructions of the employee's doctor until the employee is fully recovered. A doctor's written release is required before recovery can be assumed.

Corrective counseling my be initiated when company management believes that an employee's performance problem can and will be resolved through adequate counseling. Corrective counseling is completely at the discretion of company management. The company desires to protect its investment of time and expense devoted to employee orientation and training whenever that goal is in the company's best interests. The company expressly reserves the tight to discharge "at will." even if corrective counseling is implemented, it my be terminated at the discretion of management. Management, in its sole discretion, may either warn, reassign, suspend, or discharge any employee "at will," whichever it chooses and at may time. It is essential that all disciplinary action be adequately and appropriately supported by written documentation to protect both the rights of the company and the rights of the employee. The supervisor/manager, with assistance of the personnel department will determine the course of action best suited to the circumstances. The steps in corrective counseling and performance improvement are as follows:

1. Verbal counseling - As the first step in correcting unacceptable performance or behavior, the supervisor/manager should review pertinent job requirements with the employee to ensure his or her understanding of them. The supervisor/manager should consider the severity of the problem, the employee's previous performance appraisals and all of the circumstances surrounding the particular case.

If the problem continues, in the second step the manager should define the problem in more specific terms and work with the employee to identify the requirements for performance improvement or change of conduct serve as a solution to the problem. The seriousness of the performance or misconduct should be indicated by stating that a written warning, probation, or possible termination could result if the problem is not resolved. The employee should be asked to review what has been discussed to ensure his or her understanding of the seriousness of the problem and the corrective action necessary. Immediately after the second step in verbal counseling, the supervisor/manager should document the verbal counseling for future reference.

2. Written counseling - If the unacceptable performance or behavior continues, the next step should be a written warning. Also, circumstances such as violation of a widely known policy or safety requirement may justify a written warning without first using verbal counseling. The written warning defines the problem and how it may be corrected. The seriousness of the problem is again emphasized; and the written warning shall indicate that probation or termination or both, may result if improvement is not observed. Written counseling becomes part of the employee's personnel file, although the supervisor/manager may direct that the written warning be removed after a period of time, under appropriate circumstances.

3. Probation - If the problem has not been resolved through written counseling, and/or the circumstances warrant it, the individual should be placed on probation. Probation is a serious action in which the employee is advised that termination will occur if improvement in performance or conduct is not achieved within the probationary period.

The (PERSONNEL MANAGER OR HIS OR HER REPRESENTATIVE) and the employee's supervisor/manager, after review of the employee's corrective counseling documentation, will determine the length of probation. Typically, the probation period should be at least two weeks and no longer than 60 days, depending on the circumstances. A written probationary notice to the employee is prepared by the supervisor/manager. The letter should include a statement of the following:

A. The specific unsatisfactory situation;
B. A review of oral and written warnings;
C. The length of probation;
D. The specific behavior modification or acceptable level of performance;
E. Suggestions for improvement;
F. A scheduled counseling session or sessions during the probationary, period; and
G. A statement that further action, including termination, may result if defined improvement or behavior modification does not result during probation. "Further action" may include, but is not limited to reassignment, reduction in pay, grade, or demotion.

The supervisor/manager should personally meet with the employee to discuss the probationary letter and answer any questions. The employee should acknowledge receipt by signing the letter. If the employee should refuse to sign, the supervisor/manager may sign attesting that it was delivered to the employee and identifying the date of delivery. The probationary letter becomes part of the employee's personnel file subject to a later decision by the personnel manager to remove it. On the defined probation counseling date or dates, the employee and supervisor/manager will meet to review the employee's progress in correcting the problem which led to the probation. Brief written summaries of these meetings should be prepared with copies provided to the employee and the personnel director.

At the completion of the probationary period, the personnel director, or his or her representative, and the supervisor/manager will meet to determine whether the employee has achieved the required level of performance and to consider removing the employee from probation, extending the period of probation, or taking further action. The employee is to be advised in writing of the decision. Should probation be completed successfully, the employee should be commended, though cautioned that any future recurrence may result in further disciplinary action.

4. Suspension - A two or three day suspension may be justified when circumstances reasonably require an investigation of a serious incident in which the employee was allegedly involved. A suspension my also be warranted when employee safety, welfare, or morale may be adversely affected if a suspension is not imposed. In addition, and with prior approval of the personnel director, suspension without pay for up to Three consecutive working days my be imposed for such proven misconduct as intentional violation of safety rules, fighting, or drinking on the job. These examples do net limit management's use of suspension with or without pay in other appropriate circumstances, such as the need to investigate a serious incident. In implementing a suspension, a written counseling report should set forth the circumstances justifying the suspension. Such a report may become part of the employee's personnel file.

5. Involuntary Termination - The involuntary termination notice is prepared by the supervisor/ manager with concurrence of, and review by, the personnel department. The employee is notified of the termination by the supervisor/manager and will be directed to report to the personnel department for debriefing and completion of termination documentation. Involuntary termination is reserved for those cases that cannot be resolved by corrective counseling or in those cases where a major violation has occurred which cannot be tolerated.

The following definitions and classification of violations, for which corrective counseling, performance improvement, or other disciplinary action may be taken, are merely illustrative and not limited to these examples. A particular violation my be major or minor depending on the surrounding facts or circumstances.

3. Minor violations - Less serious violations that have some effect on the continuity, efficiency of work, safety, and harmony within the company. They typically lead to corrective counseling unless repeated or when unrelated incidents occur in rapid succession. Some examples of minor violations are as follows:

A. Excessive tardiness;
B. Unsatisfactory job performance;
C. Defacing company property;
D. Interfering with another employee's job performance;
E. Excessive absenteeism;
F. Failure to observe working hours such as the schedule of starting time, quitting time, rest and meal periods;
G. Performing unauthorized personal work on company time;
H. Failure to notify the supervisor/manager of intended absence either before or within 15 minutes after the start of a shift;
I. Unauthorized use of the company telephone or equipment for personal business.

4. Major Violations - More serious violations. They include my deliberate or willful infraction of company rules and my preclude continued employment of an employee. Following are some examples of major violations:

A. Fighting on company premises or work site;
B. Repeated occurrences of related or unrelated minor violations depending upon the severity of the violation and the circumstances;
C. Any act which might endanger the safety or lives of others;
D. Departing company premises during working hours for personal reasons without the permission of the supervisor/manager;
E. Bringing firearms or weapons onto the company premises and or vehicle;
F. Deliberately stealing, destroying, abusing, or damaging company property, tools, or equipment, or the property of another employee, customer or visitor;
G. Disclosure of confidential company information or trade secrets to unauthorized persons;
H. Willfully disregarding company policies or procedures;
I. Willfully falsifying any company records; or
J. Failing to report to work without excuse or approval of management for three consecutive days.

Termination's are to be treated in a confidential, professional manner by all concerned. The supervisor, department manager, and personnel department must assure thorough, consistent, and evenhanded termination procedures. This policy and its administration will be implemented in accordance with the company equal opportunity statement. Inasmuch as an employee can terminate his or her employment with the company at my time and for my reason, Timberville Electronics can terminate an employee at any time and for my reason. Timberville Electronics subscribes to the policy of "employment at will." Continued employment with the company is at the sole and exclusive option of company management. Permanent employment or employment for a specific term cannot be guaranteed or promised. No promises or guarantees of permanent or specific term employment will be made to an employee of Timberville Electronics by anyone, nor will such promises or guarantees, if made, ever be adhered to by the company or enforced by the employee. Terminating employees are entitled to receive only earned pay and are not entitled to any unused vacation, holiday, sick leave or any other benefits. Timberville Electronics does not provide any vested benefits. Employment with the company is normally terminated through one of the following actions:

1. Resignation -voluntary termination by the employee;
2. Dismissal - involuntary termination by the company for my reason at my time;
3. Layoff-termination due to reduction of the work force or elimination of a position.

Resignation. An employee desiring to terminate employment, regardless of employee classification, is expected to give as much notice as possible. Two weeks or 10 working days is generally considered to be sufficient notice time to find a replacement.

Should an employee resign to join a competitor, if there is any other conflict of interest, or if the employee refuses to reveal the circumstances of his or her resignation and the future employer, the manager may require the employee to leave the company immediately rather than work during the notice period. This is not to be construed as a reflection upon the employee's integrity but an action in the best interests of business practice. When immediate voluntary termination occurs for the above reasons, the employee will receive all earned pay all other benefits are forfeited.

Dismissal. An employee may be dismissed at my time, for my reason, at the sole and absolute discretion of company management. In the case of dismissal, the company may, in its sole discretion, give some notice of its intent to dismiss an employee, but the company is not required to give any such notice.

Layoff. When a reduction in force is necessary, or one or more positions are eliminated, the company will, in its sole discretion, identify the employees to be laid off. Termination Processing Procedures.

A. The supervisor or department manager must immediately notify the personnel department of the termination so that a termination checklist can be initiated. The personnel department will direct and coordinate the termination procedure.
B. All outstanding advances charged to the terminating employee will be deducted from the final paycheck by the payroll department.
C. On the final day of employment, the personnel department must receive all keys, ID cards, and company property from the employee.
D. The Personnel Department may conduct an exit interview with the employee.
E. The employee will be mailed his or her final payroll check on the next regular payday. The final check shall include all earned pay and any expenses due the employee.

Descriptions are available in the (PERSONNEL DEPARTMENT) for all positions in the company. The items included in each position description are the following:

1. Job identification;
2. Job qualifications;
3. Summary statement;
4. Assigned responsibilities or duties; and
5. Supervisor or leader.

Position descriptions are used to determine employee selection, job requirements, performance appraisals, organizational structure, and the relative worth of jobs in relation to each other. Company management annually reviews all company positions to ensure equity and consistency in our human resource system.

Our employees are paid every week, 52 times annually. Each workweek consists of 40 working hours beginning on Friday ending on Thursday. Time cards/sheets are to be submitted to your supervisor/manager by close of business the Wednesday preceding the next company payday. Pay is for the second workweek preceding the next payday.

An "Employee Pay Advance" is a temporary cash advance of an amount no more that $100, repayable in 3 pay periods. The pay advance is interest free, and is granted only in the event of an employee emergency. The advance is obtained by filling out a Payroll Advance Request and submitting it through the employee's supervisor or manager to the payroll department for processing (sample included). Requests for additional advances will be processed only after the initial advance is repaid.

It is our policy to decline all request for early paychecks. Pay advances in the event of vacation or legitimate business reasons (e.g., Temporary Duty Assignment) may be requested through the employee's supervisor or manager to the (ACCOUNTING DEPARTMENT)

All arrangements for mailing or depositing employee paychecks must be made in advance and in writing with the (PAYROLL DEPARTMENT).

Nonexempt salaried employees will be paid at the rate of one and one-half times their regular hourly rate of pay for all time worked in excess of 40 hours in any one week and for hours work on official company holidays.

Overtime is never at the employee's discretion. It shall only be incurred and paid at the request of the company through the employee's supervisor/manager.

Meal Period - The normal work day is 8 hours, commencing at (8:00 a.m.) and ending at (6:00 p.m.) with a 30-minute unpaid lunch period. It may be taken my time between 11 a.m. and 1:30 p.m. with the approval of your supervisor. Employees that work away form the time clock will automatically have 30-minutes deducted from their work day over 6 hours for lunch. It is the obligation of the outside employee to take their lunch time.

Rest Period -Nonexempt employees are permitted two paid 10-minute rest periods. Rest periods are to be scheduled as near the middle of the morning and afternoon as possible.

Employees are given the opportunity to schedule their own working hours within the limitations set by the company to meet its goals and objectives. The only requirement is that the fill time employee must work 8 hours each day and must arrive and leave within specified 2-hour periods. Arrival time can be anytime between 7:30 a.m. and 10:30 a.m. Departure time can be anytime between 4:00 p.m. and 7:00 p.m. after 8 hours of work.

The employee is expected to adhere to the general guidelines on a voluntary basis and to continue to meet job commitments and responsibilities. Another of the responsibilities is consideration of the needs of the work group and avoiding any disruption of others when arriving or departing from the work station. Also, the employee must accurately clock-in each day. The supervisor/manager is responsible for fair administration of this flextime policy.

All employees of Timberville Electronics will participate in a performance review with their supervisor/manager as often as is warranted by the job situation and the employee's performance.

The performance review will be completed in writing after the completion of an interview between tire employee and his or her supervisor/manager. The employee is encouraged to share in the review process by adding written comments to the evaluation form. The employee is also encouraged to do the following:

1. Inquire about his or her performance from time to time;

2. Accept additional responsibilities and show initiative;

3. Review opportunities for advancement within the department or job classification;

4. Ask for assistance in developing a goal-oriented path for advancement within the department or company; and

5. Learn about training available to assist the employee in skills improvement, promotion, or lateral transfer.

The supervisor/manager will determine if a merit increase is warranted at the time of the performance review. It is Timberville Electronics policy to reward employees with merit increases in salary for dedication in their work, extra effort, and better-than-average performance. Management does not award merit increases on an automatic basis or at any preset interval. Merit increase recommendations must be approved by the next level of management and submitted to the personnel department for final review and approval. All approved merit increases will be made retroactive to the first workday of the week of performance review.

The following mandatory deductions will be made from every employee's gross wages: federal income tax, social security tax (FICA), and (APPLICABLE STATE AND CITY TAXES).

Every employee must fill out and sign a federal withholding allowance certificate (IRS Form W-4) on or before his or her first day on the job. This form must be completed in accordance with federal regulations. The employee may fill out a new W-4 at anytime when his or her circumstances change. Employees who paid no federal income tax for the preceding year and who expect to pay no income tax for the current year may fill out an Exemption From Withholding Certificate (IRS Form W-4E). Employees are expected to comply with the instructions on the W-4. Questions regarding the propriety of claimed deductions may be referred to the IRS in certain circumstances.

Other optional deductions include the portion of (GROUP HEALTH INSURANCE) not paid by Timberville Electronics, which is deducted from each payroll check. Other voluntary contributions (e.g. credit union, pension plan) are also deducted each pay period.

Every employee will receive an annual Wage and Tax Statement (IRS Form W-2) for the preceding year on or before January 31. Any employee who believes that his or her deductions are incorrect for any pay period, or on the W-2, should check with the (PAYROLL DEPARTMENT) immediately. Your supervisor/manager will give you time to do this during the workday.

Vacation benefits are based on the employee's next anniversary date which occurs in the current calendar year.

To be eligible to take vacation, the employee must be in active pay status. Vacation is not vested, and a terminating employee will not be paid for vacation not taken. Vacation not taken during the calendar year is forfeited.

New employees become eligible to take vacation after they have worked 12 consecutive months. Part-time employees are not entitled to paid vacation. Employees who are not entitled to paid vacation may request permission from their supervisor/manager to take up to one week of unpaid vacation time.

The employee's supervisor/manager is responsible for scheduling vacations. Vacation entitlement is administered by the (PERSONNEL OR PAYROLL DEPARTMENT). Employees are responsible for planning ahead for vacation and working out a complete schedule with their supervisor/manager. Normally, three weeks advance notice of vacation is expected and necessary to ensure scheduling of work. Employees who desire to take more than 1 week of vacation at one time should give their supervisor/manager more than three weeks advance notice. A sick day will not be granted if it proceeds or follows a holiday or vacation day.

New employees become eligible for holiday pay after they have worked 6 consecutive months.

Timberville Electronics provides 6 designated paid holidays each year. The six scheduled holidays are as listed below:

New Years Day
Memorial Day
Independence Day
Labor Day
Thanksgiving
Christmas

Weekend Holidays. When a recognized holiday falls on a Sunday it will be observed on the Monday following. Eligibility for Holiday Pay. Employees must work the last scheduled day before a holiday and the first scheduled working day following the holiday to be eligible for holiday pay. Calling in sick will result in the lost of the holiday pay. Only regular full-time employees are eligible for full holiday pay. Temporary employees are not eligible for holiday pay.

Part-time employees are entitled to an equal number of company holidays, but they shall receive pay for only the number of hours they would have regularly worked.

If an employee is required to work on a scheduled holiday, the employee will be paid for hours worked at his or her regular pay in addition to holiday pay.

If a designated holiday falls within an employee's vacation period, the holiday is not considered a vacation day. Holiday pay will not be paid if employee calls in sick the day preceding or following a holiday. A sick day will not be granted if it proceeds or follows a holiday or vacation day.

A regular full-time employee will be eligible to receive 20 hours of sick leave after six months of continuous employment. A part-time employee will be credited with an appropriate prorated number of hours based on the previous 6 months. After the first six months of employment, sick leave is accrued monthly at a rate of 3.33 hours for a full-time employee and at a prorated amount for a part-time employee. Sick leave is accrued on the last workday of the month. Employees must be in an active pay status on the last day of the month to accrue sick leave for that month. It is in the best interests of an employee who is ill or injured that the employee not remain at work. It is the supervisor or manager's responsibility to send the employee home if the employee is incapacitated. Time for routine doctor or dentist appointments is not to be charged to sick leave. Employees are encouraged to make such appointments before arriving for work or after leaving work for the day, if possible. If time off is required for such appointments, arrangements should be made in advance with the employee's supervisor or manager. An employee is required to notify his or her supervisor or manager at the beginning of each workday (defined as no later than 15 minutes past employees start time or employee forfeits sick pay for each day not reporting) during illness or injury. Exceptions to this include a serious accidental injury, hospitalization, and when it is known in advance that the employee will be absent for a certain period of time. A Medical Release Statement is to be submitted to the employee's supervisor/manager for review before the employee returns to work in the following situations: 1. Five or more consecutive work days of absence due to illness or injury; 2. In all cases of work-related injury when the employee has been unable to work after the time of the injury; or 3. When returning from medical or maternity leave of absence.

In the case of a work related accident or injury, the company will compensate an employee for any lost work hours beginning on the date of the accident or injury and for the next (40) hours of scheduled work time lost as a result of that accident or injury. The employee's sick leave is not to be used for this purpose. The employee must then use accumulated sick leave in conjunction with worker's compensation or other disability income to achieve full pay for as long as possible. However, at no time can the combination of these exceed normal earnings. Unused sick leave will be forfeited upon termination. No employee will be allowed to overdraw sick leave beyond (40) hours without approval in writing from the (PERSONNEL DIRECTOR, GENERAL MANAGER). Such approval will only be granted on the condition, in writing and signed by the employee, that overdrawn sick leave will be deducted from the employee's final paycheck upon termination. Sick leave is not earned while an employee is on a leave of absence. An employee is to contact his or her supervisor or manager when sick or personal leave is needed because of illness. It remains the employee's responsibility to keep the supervisor or manager informed as to his or her condition and when he or she will return to work. A medical statement from the employee's doctor may be requested by the company when an employee is absent from work for more than five working days. Sick Leave is only if the employee is sick and can not be used for any other purpose. A sick day will not be granted if it proceeds or follows a holiday or vacation day.

Personal leave is at the employees expense and must be approved in advance and must not impact the work schedule.

A leave of absence is time off in a non-pay status. Upon receipt of a formal written request for leave of absence from regular full-time employees, management will determine whether a leave of absence will be granted. The types of leaves granted are personal, educational, public service, and military.

The leave classifications are defined as follows:

1. Personal. Personal leaves are granted to employees having special personal need for an extended period of absence. Each case must be evaluated on its own merits considering the following:

a. The reason for the request;
b. The amount of time required; and. The employee's length of service and past record. Normally, personal leaves are granted for periods of up to 90 days.

2. Educational. To encourage the academic development of deserving employees, educational leaves of absence may be granted. Employees must have 5 years of active service with the company for each year of leave. If the educational leave is for completion of a college bachelor's degree, the employee must also have a minimum of (60 UNITS OF COLLEGE CREDIT; 2-1/2 YEARS OF COLLEGE CREDIT). The employee's record, career objectives, and the applicability of the major area of study to the company's needs must be considered in determining whether educational leave will be granted. Typically, educational leave will be granted for one year and may be renewed for an additional year at the option of the company.

3. Public Service. Leaves of absence for public service may be granted to employees to permit participation in special community projects or political campaigns or to accept a governmental elective or appointive position. Employees must have a minimum of 5 years of active service with the company for such leave to be considered.

4. Military. To protect the employment rights of employees entering tire armed forces of the United States and to ensure conformance with the applicable federal laws, a leave of absence must be granted to all employees (except temporary) who enter military service for active duty as a result of the following:

A. Initial enlistment in the armed services of the United Stares;
B. Initial training period in the National Guard;
C. Being ordered to active military service as a member of the Reserves or National Guard for an indefinite period or for a periodic training period up t 10 working days; or
D. Any service requirements under the Selective Service Act.

Medical, dental and life insurance coverage continues for 30 days. Thereafter, coverage may be converted to an individual contract.

Holiday pay is not available to employees during leave of absence. Vacation and personal or sick leave is not accrued during the leave of absence.

The employee assumes responsibility for keeping the company periodically advised of the need for continuing leave of absence status. He or she should contact the supervisor/manager at least two weeks prior to expiration of the leave to discuss return to work. Following leave of absence, the company will make every reasonable effort, consistent with company needs, re reinstate an employee re the same position he or she previously occupied, or to a similar position. However, the company cannot guarantee that the employee will be reinstated to the same or a similar position. If the same or a similar position is not available, the company reserves the right to offer the employee a lower-level position at the appropriate salary for such a position.

If this is not acceptable to the employee, the employee will be terminated. Exceptions to this rule are employees who are granted military leave of absence. They are entitled to full reemployment rights subject to the governing federal and state laws. Employees who do not return to work after leave of absence will be terminated effective on the last day of work or paid leave whichever is later.

The company will pay for time off in the event of death of the following immediate family members:

The employee and supervisor will determine the amount of time employee will be absent from work. The maximum paid leave is 1 day in addition vacation time may be used.

Leave for attendance at the funeral of non-immediate family members or persons with some especially close relationship may be granted without pay. Determination will be made by the employee's supervisor after consultation with upper management.

Timberville Electronics will grant employees time off for mandatory jury dory or court appearances as a witness when the employee must serve or is required to appear as a result of a court order or subpoena. A copy of the court order or subpoena must be supplied to the employee's supervisor/manager when requesting time off. The employee is entitled to '/ pay for each day of jury dory up to a maximum of (10) days per year. However, time off for court appearances as a witness or party to any civil or criminal litigation shall not be compensated by Timberville Electronics, and the employee must arrange for time off without pay or use vacation or personal leave for such appearances.

Timberville Electronics encourages all employees to vote. Employees are encouraged to use flextime hours for this purpose.

If this cannot be arranged, your supervisor will approve time off to vote either at the beginning or end of your work day provided what you give at least one day's notice to your supervisor.

Timberville Electronics provides Free rental of video tapes and Nintendo game cartridges to all employees. Rental is conditional.

To ensure that all proper business-related expenses incurred by employees are reimbursed, the following procedure has been established:

1. All expenditures are to be approved in advance by the employee's manager unless circumstances prevent advance approval.
2. All business-related expenditures must be accompanied by a receipt or evidence of expenditure to receive reimbursement.
3. All items purchased or charged by the employee are to be itemized on the approved company expense report. All portions of the report must be filled out or marked "N/A" (not applicable), and the necessity and purpose of the expenditure must be explained in sufficient detail.
4. Expense reports must be signed and dated by the employee and initialed by the manager showing approval. Reports are due in the accounting department within 30 days of the expenditure. Reimbursement will be made by the fifth working day of the month following submittal of the report.
5. Managers are authorized to approve expenditures up to a limit of $100.00 for non-travel-related items, including local mileage reimbursement and one day trips for conferences, meetings, and the like. Any amounts over this limit must be approved by (PRESIDENT). All travel-related expense reports, except for local mileage reimbursement or one-day trips, must be approved by the (MANAGER).

For the convenience of the employee, when he or she desires to use his or her personal vehicle for company business, all employees of Timberville Electronics shall be reimbursed for company-related business travel at the rate of 20 cents per mile. Use of a personal vehicle is never required by the company and is discretionary on the part of the employee.

Travel expenses between your home and your assigned work location are not reimbursable. If an employee is required to travel from home directly to a third location on company business and then to work, the company will reimburse the employee for the difference between the mileage the employee normally drives to work and the total miles driven on business. Requests for reimbursement of business-related travel will be submitted to your supervisor/manager for approval on a standard company expense report. Reimbursement requests will include the following:

1. Date of travel;
2. Beginning and ending odometer readings for each trip;
3. Travel destination;
4. Number of miles traveled on company business; and
5. The reason for company travel.

The expense report must be signed and dated by the employee and initialed by his or her supervisor/manager. The reports must be submitted to Accounting and will be processed according to the polity, "Employee Incurred Expenses and Reimbursement" (VI-A). The employee, in using his or her vehicle for company purposes, assumes liability for his or her vehicle. All employees who desire to use their personal vehicles for company business must sign statements verifying that they have a current driver's license and vehicle liability insurance in at least the minimum amounts required by state law.

Employees may request time off or company financial support or both to attend conferences or meetings sponsored by institutions or professional organizations. The subject matter to be presented must relate directly to the employee's position or provide beneficial information to be shared in the employee's department. The employee's manager and the (PRESIDENT) must approve the employee's participation in the conference or meeting. The company may pay for the following expenses if attendance is approved: tuition or registration fees, travel costs, lodging, and meal expenses not covered by registration. Time off for attendance and travel during normal working hours will be paid at the normal rate of pay.

Timberville Electronics encourages its employees' job-related professional growth and development. In expression of this support, Timberville Electronics will reimburse each exempt employee up to $50 per calendar year for expenses incurred in joining professional organizations. Professional organizations are defined as the American Electronics Association, American Society of Training and Development, Institute of Electrical and Electronics Engineers, and similar professional organizations which have job related educational programs and publications. Reimbursement will be made upon receipt of an expense report accompanied by proof of membership payment.

All travel expense requests, mileage or subsistence expense reports, purchase requisitions, educational assistance reimbursements, and other business-related expense reports must be approved by the employee's supervisor/manager before the request will be processed for payment by the accounting department. Where a projected expense allowance budget was prepared for relocation of employees or temporary assignment, the request should be submitted to Accounting following its approval by the (PRESIDENT).

Timberville Electronics managers may only approve expenditures which are business-related, reasonable, and consistent with the letter and intent of company policies. Occasionally, a policy will not cover a speck expenditure. Similarly, the facts and circumstances relating to a particular item or expense may justify an exception to the letter of a polity. In these events, a manager should consult with the (ACCOUNTING DEPARTMENT) for guidance. Among the factors to be considered in resolving such issues are the following:

1. The intent or purpose of the policy;
2. The particular facts or circumstances surrounding the expense;
3. The necessity for the expense;
4. The amount involved; and
5. Previous similar situations. Employees who incur expenses, or charge expenses to the company, without prior approval do so at their own risk. Employees are invited to seek prior approval from management in questionable situations.

No employee of Timberville Electronics shall maintain an outside business or financial interest, or engage in any outside business or financial activity, which conflicts with the interests of Timberville Electronics, or which interferes with his or her ability to fully perform job responsibilities. For example, and not by limitation, if your job responsibilities include sales, home service, or shop service you are prohibited form performing such services for your self or others. You should have no proprietary or financial interest in any business that furnishes products, materials, or services to Timberville Electronics or in any related transaction. Nor may you benefit directly or indirectly from a third party who furnishes products, materials, or services to Timberville Electronics. Violation of this polity will result in immediate dismissal.

In coordination with the "Corrective Counseling" policy, an employee may express a verbal grievance to his or her immediate supervisor. If the concern is not resolved to the employee's satisfaction within one week, the employee may put in writing the details of his or her grievance and submit the grievance to the immediate supervisor. The written statement will be reviewed by the (PRESIDENT), who will appoint a person to decide the matter. The employee and his or her supervisor will request a hearing with the appointed person for resolution of the problem. The problem will be discussed in the presence of the employee and supervisor. Final resolution of the grievance will be made by the appointed person and discussed with the employee and supervisor. The decision will be reduced to writing, a copy given to the employee and supervisor, with the original kept by the personnel director. A copy will be filed in the employee's personnel file when appropriate.

In adherence to government regulations, no company employee may offer a gratuity to any government employee or official on behalf of, or in pursuance of, company business. Gratuities are defined as meals, drinks, gifts, expenses, cash, or any other item of value including personal service. An offer to provide, or the actual provision of my form of gratuity to a government employee or official, will constitute grounds for immediate termination.

This policy establishes the ethical conduct to be maintained by employees in relationships with customers. As an employee, you may not receive, give, pay, promise, or offer our customers anything of value for the purpose of securing or appealing to secure preferential treatment. This also includes my form of gratuity to or from employees of our customers or members of their families. Violation of this policy in any form will require immediate disciplinary action or termination of the employee.

In recognition of its responsibilities as a business citizen, Timberville Electronics encourages its employees to accept the personal responsibility of good citizenship, including participation in civic and political activities in accordance with their interests and abilities.

Timberville Electronics accepts without reservation the basic democratic principle that all employees are free to make their own individual decisions in civic and political matters. Therefore, no employee's status with the company will be affected, in any way, whatsoever, because of participation or non-participation in lawful civic and political activities.

Participation in civic and political activities is considered to be a personal matter and, as such, is generally to be carried on outside of normal working hours. No political activities or solicitations will be carried on within company premises.

Political activities are defined for purposes of this policy as activities in support of my partisan political issue or activities in support of, or in concert with, any individual candidate for political office, or a political party, which seek to influence the election of candidates to federal, state, or local offices. The definition includes employees who are or may be candidates for political office.

The company reserves the right to deny time off for political activity where the activities, in the opinion of the company, would unduly interfere with the employee's fulfillment of my obligations to the company. However, when an employee's full time is required for political activity, a leave of absence without pay may be granted (Refer to Section V-E).

A large percentage of the company's business is transacted by telephone. The telephone equipment of the company is provided for the purpose of providing service to our customers; therefore, it is necessary to limit your personal calls to an absolute minimum number. Personal calls should only be made in case of absolute necessity or emergency. If non-emergency personal calls must be made, please arrange to make them during your break or lunch period. No long distance personal calls my be made on company phones.

Vehicles are provided to certain employee for the benefit of Timberville Electronics not the employee. These vehicles are provided to increase productive they are for company business only. Employees provided vehicles are on call and must be available at a moment notice 7 days a week. The company will allocate vehicles as is best and most economical. Employee must not rely on company vehicle for transportation to and from work. Vehicle is not a benefit or a right. Employee is required to use the vehicles to maximize calls per mile while maintaining highest customer satisfaction. We are in the service business and if we must go out of our way or go the same area 2 or 3 times a day employee is required do just that. Employee day starts when arriving on the first call and ends when leaving last job. Speeding in company vehicle is prohibitive. See speeding polity.

Beepers and or Cell phones may be provided to key employees for the benefit of Timberville Electronics. Beepers are to be within hearing distance and to be answered between 7 AM AND 10 PM 7 days a week. Return of call must be as soon as possible. When on the road return beeper call from your next stop. Two consecutive beeps stop at the next available phone as we have urgent need of information. The management expects and requires constant communication with all employees.

Tardiness is a very serious problem for all businesses and cannot be allowed to impact our customers. In keeping with this each time an employee is late and lateness impacts the service schedule, he or she will be given a quarter dollar per hour ($0.25/hour) decrease in pay, effective immediately. If this should result in a rate of pay below the federal minimum wage, the employee will be considered for termination. Once the employee has been on schedule for one (1) full week, the employee will be rewarded with the return of the pay decrease in quarter dollar per hour ($0.25) increments. i.e. late twice regular pay returned in two weeks if on time and ready to work every day.

In order to provide a safe work environment to help maintain a professional atmosphere and to prevent any potential hazard to each employee and there coworkers, drug/alcohol testing will be instituted. Management may test randomly or at any time for whatever at its sole discretion. Any employee testing positive may be subjected to immediate and severe disciplinary action. Check other policies in this manual for more details.

Our goal is a safe, drug-free workplace.

Absolutely No Speeding All drivers are required to maintain a good driving record. A poor driving record may be considered cause for dismissal. Insurance rules due not permit less than good drivers to operate our vehicles. Always drive defensively and with courtesy to other drivers.

Paperwork is very important for customer documentation and for receiving proper payment

Normally contracts will be "Red-Xed" if a red X is missing or you believe (here is a mistake on the contract call the office.

ONLY the person on the contract may sign the contract.
ALL signatures must be witnessed by the technician.
The WIFE can NOT sign for the husband. The HUSBAND can NOT sign for the Wife.
Cheating will not be tolerated: LIABILITY due to fraud will be transferred to the installer or technician.

Any questions call the office immediately.

Timberville Electronics, Inc. is NOT a Bank - Credit is extended only for short term convenience of qualified customers.

Customer wanting to purchase merchandise on credit must fill-out credit application which is faxed to outside credit firms. If customer is rejected for outside credit Timberville Electronics, Inc. will not extend credit.

Customer should receive credit approval in advance of any service.

Extension of credit for repairs will be short term. On any service the service call or minimum charge will be collected before any credit will be extended. A credit application must be filled out completely both husband and wife. Credit can be extend for 7 days with approval from the Credit Department and the appropriate promissory note properly filled and signed both front and back. The 7 day promissory note will be carried on all frocks.

If more time is needed beyond the 7 day note. The customer must contact the Credit Department to refinance their note, this can be through an outside source or through Timberville Electronics, Inc. If approved a new note and supporting paper work will be sent for immediate signature.

OUTSIDE JOB POLICIES

Your job at Timberville Electronics must and shall be your most important job. 
Timberville Electronics does not normally hire part-time employees in the service or installation departments.
Timberville Electronics will attempt to accommodate employee's schedule, if practical, and when it does not conflict with the requirements of Timberville Electronics as determined at the sole discretion of Timberville Electronics. 
Any employee wanting or needing an additional outside job may do so under the following conditions:
Inform Timberville Electronics of any outside jobs including company name, contact name, address and phone number.

Your outside job cannot conflict with your Timberville Electronics work schedule, which is subject to change without notice. 

Your outside employment cannot be in competition with any business of Timberville Electronics in anyway.

You May Not: 

Give out your personal or business phone number, take calls for outside business, distribute business cards, fliers, advertising or referral information not related to Timberville Electronics business, or otherwise solicit customers for your outside employment while working for Timberville Electronics, including any time you are clocked-in, on any break in your schedule, in a customers home, in the company's truck, or anytime you are associated in any way with Timberville Electronics. All business calls must be routed through Timberville Electronics.

Work for any suppler or distributor of Timberville Electronics.

No reference to Timberville Electronics, explicit or implied, may be made when soliciting outside work.

A doctor's note may be required for sick pay. You will not be paid sick leave if you work your other job in any case.