KIMBERCO, LLC

Edition

1
Human Resources Communications – Employee Manual

EmployeeManual
 H U M A N R E S O U R C E S E M P L O Y E E C O M M U N I C AT I O N S

KIMBERCO, LLC Employee Manual

2008-2010

 KIMBERCO, LLC
Corporate Headquarters
6412 West Fawn Drive
Laveen, Arizona 85339
Phone 1.800.587.0332• Fax 1.800.587.0332
Table of Contents
Purpose & PurviewError! Bookmark not defined.
Affirmative Action Policy..............4
Employment of Members of the Same Family 5
Employment of Minors...................5
Responsibility of Supervisors.........6
Performance Review Guidelines....6
Complaint and Grievance Procedures 8
Policies Common to All Complaints8
Personnel Records..........................9
Employee Development Resources10
Company Personal Assistance Program 11
Policy on Conflict of Interest.......12
Hiring and Placement...................13
Request for Personnel...................13
Posting of Available Positions......14
Posting Requirement under Contractual Agreements Error! Bookmark not defined.
Waiver of Posting Requirement. .14
Employment of Administrative Employees by Two Departments 14
Employment of the Support or Service 15
Temporary or Regular Placement of Individuals through Outside Agencies 15
Use of Agencies in Hiring Regular Employees 16
Short-term Assignments...............17
Testing Applicants for Employment18
Interviewing Policies and Procedures 18
Applicant Flow Referral System. .20
Checking References....................20
Notification of Interviewed Applicants 21
Offer of Employment....................21
Establishment of a Starting Salary21
Probationary Period......................21
Procedures for New Employees...22
Invention and Proprietary Information Agreements 23
Orientation to the Work Group...23
Benefits Orientation Meetings.....24
Moving Expenses..........................25
Transfer Policies............................25
Initiation of Transfer/Notification of Supervisor 26
Reinstatement of Former Employees 27
Formula for Reinstatement of Former Employees 27
Reinstatement of Laid Off Employees 28
Conditions of Work and Personal Conduct 28
Policy Regarding the Use of Alcohol 28
Policy Regarding A Drug-Free Workplace at KIMBERCO 29
Company Smoking Policy............29
General Policies............................30
EXCUSED ABSENCES 30
Funeral Attendance......................30
Jury Duty.......................................30
VotingError! Bookmark not defined.
Religious Observances..................30
Personal Business..........................30
Education.......................................31
Unexcused Absences.....................31
SICK LEAVE POLICY................................................................. 32
Definition......................................32
Earning Sick Leave........................32
Taking Sick Leave.........................32
Transfer of Sick Leave..................33
Termination...................................33
HOLIDAY – ELIGIBILITY............................................................ 34
Holidays.........................................34
Eligibility.......................................34
Floating Full-Day Holiday............35
Compensation for Holidays Worked 35
Holidays for Staff Working Non-Standard Work Week 35
FAMILY AND MEDICAL LEAVE POLICY STATEMENT 36
Eligibility.......................................36
An Eligible Employee is Entitled to Leave for the Following Circumstances: 37
Adoption Placement.....................38
Care for the Employee’s Significant Other 38
Care for the Employee’s Ill Child.38
Employee’s Serious Health Condition 39
Concurrent Leaves........................40
Benefits- General..........................40
Leave..............................................40
Health Benefits..............................40
Return to Work.............................41
Notes..............................................41
HOURS OF WORK AND OVERTIME 42
Standard Work Week...................42
Flexibility......................................42
Overtime — Fair Labor Standards Act Requirements 42
Multiple Employment..................43
Independent Contractor/Staff Member 43
Salary Reduction (Docking).........44
K I M B E R C O W E B E M P L O Y E E M A N U A L 2 0 0 5 - 0 6

Section

1
 KIMBER
CO, LLC HR
Employee
Manual 2005-
2006
PURPOSE
AND PURVIEW

This manual is the official statement of KIMBERCO,

LLC (KIMBERCO) personnel policies. It is designed to
provide employees with uniform knowledge in order to
assure equitable and consistent application of the policies. It
is the responsibility of each manager and supervisor to
administer these policies consistently and impartially.

The policies in this manual are applicable to all persons

employed by KIMBERCO, exclusive of corporate officers.
The Human Resources Department is responsible for
personnel policy revisions. This manual is provided upon
hire, and a copy is maintained in Human Resources
Department for review. Revisions will be provided as
published updates provided to the employees and will be
announced in Company communications.

This manual does not constitute an express or implied

contract and its provisions are not intended to be
contractually binding. Each employee has the right to end
employment with the Company at any time for any reason
and the Company reserves this same right.

The Company retains all managerial and administrative

rights and prerogatives entrusted to it and conferred on
employers inherently and by law. These include, but are

2
not limited to: the right to exercise judgment in
establishing and administering policies, practices and
procedures, and to make changes in them without notice;
the right to take whatever action is necessary in the
Company’s judgment to achieve KIMBERCO goals; and
the right to set the standards of productivity and services to
be rendered, etc. Failure of the Company to exercise any
such prerogative or function in a particular way shall not be
considered a waiver of the Company’s right to exercise
that prerogative or function in the future or to preclude it
from exercising that prerogative or function in some other
way.

KIMBERCO STATEMENT OF
ETHICAL STANDARDS
The mission of KIMBERCO is to improve the
quality of human life through the use of
personal and business web hosting solutions.
In order to succeed in this mission, the
company must maintain the confident of its
customers, and, to do this, it is essential that
the employees of KIMBERCO maintain the
highest standards of integrity and ethical
conduct, both in fact and in appearance.

Ethical conduct cannot be defined specifically

in advance of
every situation,
and the Company
relies on good
judgment of its
employees to
maintain the high
standards
required of a
great company.
Perhaps the best
assessment we
can make is to
ask ourselves if
we would like to
have our
involvement in

3
the activity in question discussed on the front
page of the morning paper. If not, then we
probably shouldn’t be doing it.

The following principles are the standards of

ethical behavior required of KIMBERCO
employees.

1. KIMBERCO employees are expected

to obey all federal, state, and local
laws including those pertaining to
equal opportunity, nondiscrimination
and harassment.

2. Employees may have no financial

interest in the outcome of any
business dealings in which they
participate on behalf of the Company,
except as permitted and approved
pursuant to the Company’s conflict of
interest policy.

3. The confidentiality of information

deemed so under the Company policy
and applicable laws, including
personnel, patient medical records
and proprietary information, must be
maintained.

4. Employees may not use the

Company’s resources, including their
own paid time, for any purposes other
than those that benefit the Company.

5. Employees may not use their

Company positions to gain rewards,
favors or positions in outside
endeavors.

6. Employees may not use company

letterhead in the furtherance of their
personal

7. Individuals should report ethical

standards violations, as indicated in
the company’s policy on reporting
fraud located at the Human Resources
Department.

4
 Affirmative Action Policy

Section

2
8. Retaliation or retribution against an
employee who has in good faith
reported an alleged unethical practice
will not be tolerated.
Questions concerning ethical behavior should
be directed to one's supervisor, or the Human
Resources Department.

Individuals found to be in violation of ethical

standards in university dealings will be
subject to disciplinary action, which may
include termination.

EMPLOYMENT POLICIES
KIMBERCO’S AFFIRMATIVE ACTION
PROGRAM IS INTENDED TO EXPAND OUR
EFFORTS TO GUARANTEE EQUALITY OF
OPPORTUNITY IN EMPLOYMENT AND TO
REDUCE UNDER-REPRESENTATION AND
UNDERUTILIZATION OF MINORITIES AND
WOMEN AT KIMBERCO. FOR ALL
COMPANY CATEGORIES OF EMPLOYMENT,
OUR OBJECTIVES ARE TO ACHIEVE A
REPRESENTATION OF MINORITIES AND
WOMEN THAT ARE AT LEAST IN
PROPORTION TO THEIR CURRENT
AVAILABILITY AND TO PROVIDE NEW
OPPORTUNITIES FOR CAREER
DEVELOPMENT WHICH BOTH STIMULATE
AND RESPOND TO THEIR CHANGING
INTERESTS AND ASPIRATIONS.

5
KIMBERCO has a job posting system for all
jobs openly available. These positions are
listed in the Human Resources Department.
This open announcement of job opportunities
serves to make all employees of the
KIMBERCO community aware of career
opportunities that exist at the Company.

The Company’s program for the employment

of individuals with disabilities is intended to
expand KIMBERCO’s efforts to provide
opportunities for employment and
advancement for qualified persons with
disabilities. The Company will not
discriminate against any employee or
applicant for employment because of physical
or mental disability in regard to any position
for which the employee or applicant is
qualified.

KIMBERCO’s obligations under the

Americans with Disabilities Act include an
assessment of all employment practices to
assure that any adaptation that permits the
employment or advancement of individuals
with disabilities is reasonably accommodated,
provided it does not cause undue hardship to
the employer. Some individuals may require
flexible work schedules, worksite
accommodations, or auxiliary aids in order to
perform the required duties of a job.
Reasonable accommodation to needs such as

6
 Employment of Members of the Same
Family

these is the Company's affirmative action

responsibility under the law.

Inquiries regarding this policy may be

directed to the Human Resources Department.

In compliance with the Vietnam-Era Veterans

Readjustment Assistance Act of 1974, as
amended, KIMBERCO does not discriminate
against any qualified employee or applicant
for employment because he or she is a veteran
with a disability or Vietnam-Era veteran.
KIMBERCO, in this respect, takes
affirmative action to employ, advance in
employment, and treat without discrimination,
veterans with disabilities and veterans of the
Vietnam Era.

KIMBERCO also invites qualified veterans

with disabilities and veterans of the Vietnam
Era who wish to benefit under this program to
voluntarily identify themselves to the Human
Resources Director or to the employment
interviewer.

Questions relating to the employment of

veterans should be directed to the Human
Resources Officer.

The Company's policy is to base

appointments and promotions on
qualifications and work performance. In
keeping with this policy, members of the
same family, including husband and wife,
may be eligible for employment within the
same department or area of the Company.
When members of the same family are
recommended to work for the same
supervisor, written approval of the
arrangement by the appropriate senior officer
will be required in advance. In such cases,
however, a supervisor-employee relationship
shall not prevail at the time of employment or

7
 Employment of Minors

thereafter, nor shall one member of the family

relationship assume for the other the role of
advocate or judge with respect to conditions
of employment, salary, or promotion.

It should be clear that the reasons underlying

such a restriction on employment, defined as
applying to members of the same family,
should apply with equal validity to those
whose living arrangements approximate
family relationships. See also Policy on
Conflict of Interest, as it pertains to personal
relationships that may constitute a conflict of
interest.

While general responsibility for assuring

adherence to these policies must rest with
those department heads, and directors, a
particular responsibility for sensitivity to the
potential conflicts falls on whose family or
personal relationships may give rise to them.

It is Company policy to maintain certain

personnel and safety practices concerning the
employment of minors. The State(s) of
Arizona and California and the federal
government place many restrictions on the
type of work that may be performed by
minors and the hours during which they may
be employed. As a consequence, the
following should be adhered to:

No one under the age of 16 may be employed

in any capacity on either a part-time or a full-
time basis. Persons under 18 years of age
must present certification that they are legally
eligible to work. This Educational Certificate
is obtained through their school system.

Employment of individuals under the age of

18 requires special consideration. They may
not be hired in any capacity, full-time or part-
time, where a security clearance is required,
or in work where considerations of safety

8
 Responsibility of Supervisors

normally require a high degree of training,

experience, or knowledge. Such work may
include, but not be limited to: operation of a
motor vehicle or freight elevator; use of
flammable, toxic, or radioactive materials, or
explosives; work under certain physical
circumstances such as confined spaces and
certain heights; work with high-voltage
apparatus; or any other activity which may be
deemed restricted by the Safety Office.

In addition, individuals under the age of 18

may not be employed more than nine hours in
any ten-hour period, more than forty-eight
hours in a week, or more than six consecutive
days. They may work only between 6:00 a.m.
and 10:00 p.m., and must be allowed at least
thirty minutes for any meal period.

Requests to employ persons under the age of

18 require the prior approval of the Human
Resources Department to determine whether
such employment conforms to applicable
laws and Company safety policy. Requests
should be sent in writing, accompanied by a
brief job description, to the appropriate HR
Officer, who will arrange a review of the job
by the Safety Office.

Related Human Resources

Policies
KIMBERCO Human Resources Policy, Equal
Employment Opportunity Policy states that
KIMBERCO is committed to the principle of
equal opportunity in education and employment
and does not discriminate against individuals on
the basis of race, color, sex, sexual orientation,
religion, disability, age, veteran status, ancestry, or
national or ethnic origin. For more information
you can contact the Human Resources
Department.

Many persons at KIMBERCO have, as

supervisors, responsibility for organizing and
directing the work of others. These

9
 Performance Review Guidelines

responsibilities fall also on those not clearly

designated as supervisors. The responsibilities
of supervision include understanding and
administering Company policies governing
relations with its employees, giving
recognition for work well done and
identifying less than satisfactory performance,
being concerned with the development and
realization of the capabilities of those under
supervision, and in other ways seeking to
increase the satisfactions of the work and the
working environment.

Supervisors should seek to be sensitive to the

feelings and attitudes of those they supervise
and reach for a mutual understanding of the
tasks, terms, and conditions of work. At the
same time, they have the obligation to set
high standards of performance, to require
matching achievement, to reward those who
perform well, and to terminate those who are
unable or unwilling to meet the expected
standards.

Supervisors may not require employees to

work on their personal or non-professional
affairs, nor may employees be required to
perform personal services except where
inherent in the nature of the position and
defined in the position description.

Supervisors are encouraged to utilize the

Company’s resources available to them for
their own and their employees’ professional
growth and development, such as the
employee development programs organized
by the HR Department.

In work performance discussions, the

following topics are useful for both
supervisors and employees and should be the
basis of a discussion at least once a year.
Ideally, communication and feedback exist
continuously between supervisor and

10
employee. However, even when feedback is
freely given and received, a more formal
annual or semi-annual performance review is
desirable. Performance evaluation forms for
administrative and the Human Resources
Department provides support staff to
supervisors annually. It is the supervisor's
responsibility to see to it that performance
reviews take place with all employees.

It is important for both supervisors and

employees to have considered the following
elements prior to the actual performance
review discussion and be prepared to discuss
them.

Job
Description
 Is the
original job
description
adequate?
 What are the
employee's
duties and
functions?
 Have they
changed during the past year?
 Have the duties and functions of the
original job description changed
enough to warrant reclassification
and/or promotion to a higher grade
and salary?
Work Performance
 How well is the employee performing
the duties and functions in the job
description?
 In what areas has the employee's
performance exceeded expectations?
 In what areas has the employee's
performance fallen short of
expectations?
 In what ways can the supervisor help
employees to improve performance?
 What specific performance
improvements are expected within the
next six months? The next year?

11
 Work Relationships
 What positive or negative aspects
exist in work relationships with
colleagues, clients, students, other
supervisors or managers, etc.?
 Is the work relationship between
supervisor and employee functional
and effective?
 Can the supervisor facilitate the
improvement of any work
relationships?
Career Development
 What career development
needs/aspirations does the employee
have?
 How might the supervisor assist in
identifying career development
opportunities and resources (e.g.
tuition assistance, employee training
programs, etc.)?
 How realistic are the employee's
career aspirations in his or her current
job?
 What promotional opportunities, if
any, exist in the employee's work
unit, department, etc.?
Future Goals/Expectations
Goals/Expectat
 What specific performance goals can
be established for the next
performance review?
 What goals or expectations does the
employee have for accomplishment
by the next performance review?
 How will achievement of goals or
expectations be measured?
 Does the employee have the requisite
skills to accomplish these goals or
expectation?
 How might the supervisor assist the
employee in attaining his or her
goals?
The above guidelines are intended to provide
a general outline around which useful
discussion of performance can take place. It is
important that both participants in the
discussion be as comfortable as possible and

12
 Complaint and Grievance Procedures

that the discussion is directed toward

producing a clear and mutually understood
working relationship. Conducting
performance discussions with employees,
although sometimes difficult, is a vital aspect
of a supervisor's function and has a significant
influence on the effectiveness and
productivity of departments. Human
Resources Personnel can provide more
specific information regarding review
procedures and guidelines.

Any person working at KIMBERCO, who

believes that he or she has been unjustly
treated or that the Company's stated policy of
nondiscrimination has been violated, is
encouraged to seek to solve the problem or to
seek redress through the procedures outlined
below. These procedures provide the paths
available in most situations for employees and
support staffs. In some instances, separate
procedures have been established for
particular groups of employees and for
particular issues and are not described in this
section.

All employees at KIMBERCO who have a

concern, complaint, or inquiry related to his
or her employment at KIMBERCO should
seek first to discuss the work situation and
problems with his or her immediate
supervisor. If the complaint is against another
person who works at KIMBERCO, it may be
resolved directly with the person complained
against or with that person's immediate
supervisor. Supervisors are expected to
provide a supportive environment that fosters
open communication related to work life at
the Company, and are encouraged to resolve
work problems and grievances in the
immediate work environment, if possible.

If the problems are not resolved with their

immediate supervisor, individuals may

13
 Policies Common to All Complaints

choose to discuss the situation with

successively higher supervisors in the office,
department, vice president, or the Director of
the Human Resources Department.

Alternatively, or simultaneously with respect

to the line of supervision above, an individual
may discuss a problem and seek help in its
resolution from the departmental
administrator and/or a personnel
representative in the Human Resources
Office. An individual may also pursue a
problem with successively higher supervisors
within Personnel up to the Director of Human
Resources.

In most instances, it is expected that

individuals will proceed, if necessary, up
through the appropriate lines of supervision
specified above. There may be unusual
circumstances, however, when the need for
information or advice about a work situation
may warrant direct inquiries to anyone in the
lines of supervision.

It is the Company's policy that individuals

will not be reprimanded or discriminated
against for initiating an inquiry or complaint.
It is also the Institute's policy to recognize
and respect the rights of any individual
against whom a complaint has been brought.
Normally while a complaint is being pursued
internally, a complainant is expected to
represent himself or herself directly;
individuals are free to obtain the support and
assistance of a co-worker in presenting their
concerns.

Once a complaint is presented or an inquiry

begun, a determined effort should be made at
each step, either to resolve the problem, or to
refer it to the next step as promptly as
possible. If a prompt disposition is not
possible, as will sometimes realistically be the

14
 Personnel Records

case, the status of the inquiry should be made

known to the parties involved on a regular
basis. In cases where response or resolution is
delayed beyond a reasonable time, a
complainant may, after informing the
individual handling the complaint, elect to
proceed to the next higher level.

Complaint handlers must protect privacy as

much as possible; they cannot guarantee
complete confidentiality. For example, people
who might have information relevant to a
case may learn of the complaint in the course
of an investigation. The assurance of privacy
may be qualified by the duty placed by law on
persons receiving complaints of particular
types.

These procedures serve also as the complaint

and grievance procedure for employees as
required by all relevant state and federal
legislation, specifically including concerns
about race, sex, gender, disability, color,
nationality, age, sexual orientation, and
veteran's status.

The Human Resources Department is

responsible for maintaining records of each
employee's work history at KIMBERCO and
for maintaining some biographic information,
including educational background, home and
office address, and emergency notification
information.

Updating Personnel Records

It is the responsibility of supervisors or

administrators in departments to notify their
Personnel Officer of changes in job duties,
work schedule, or other position-related
information.

Employees are responsible for notifying

Human Resources Information Services of

15
changes in name, social security number,
local (home) and KIMBERCO address,
electronic address, and telephone number by
completing a "Personal Change Notice" form,
which can be found in the Human Resources
Department. Changes related to benefit
programs, such as names of children to be
insured, or beneficiaries, should be sent to the
Human Resources Department.

Release of Information

Only the following information concerning

active or terminated employees is released by
the Personnel Department upon receipt of a
telephone or written request:
a) Dates of employment at KIMBERCO
b) Job classification or title
c) Department in which the individual is
or was employed
d) KIMBERCO telephone extension on
active employees, if requested.
e) Electronic mail address
Written requests for additional information
related to credit evaluation, employment
references, mortgage applications, etc. will be
provided only if a release form is signed and
returned to the Human Resources Information
Services Office by the employee.

Requests for employment information by the

Arizona Department of Unemployment and
other states in connection with an
unemployment compensation application will
be provided, as required by law, without the
use of a release form, since the terminated
employee who has filed a claim initiates this
inquiry.

Employees will be notified, whenever

possible, when the Company is required to
provide personnel information by a subpoena,
warrant, or other court order.

Access to Personnel Files by

Supervisors and Administrative
Officers

16
 Employee Development Resources

Supervisors and Administrative Officers do

not have access to personnel files.
Information on work record or employment
history will be provided to supervisors or
Administrative Officers by the Personnel
Officer assisting the department on a need-to-
know basis. Personnel Officers may provide
applications or material placed in the file by
the supervisor.
Access to Personnel Files by
Employees
Upon written request, an employee may make
an appointment with the Personnel Officer for
the employment area to view his or her
personnel file. An employee may not request
that material be removed from the personnel
file unless mutually agreed to by the parties
concerned. If the employee feels that a
situation has been unfairly represented, he or
she may submit a clarifying memorandum to
the Personnel Officer and request that it
become a permanent part of the file.
A written and notarized request is required
from former employees when requesting
access to their personnel files.

The Human Resources Department has

responsibility at the Company for training
and organizational development
programs. Consultation and training
services are provided to meet the needs of
diverse employee groups on both a
community-wide and departmental basis.
Career counseling is also available for
individual employees. Specific services
are briefly described below:

Training Programs

17
Upon request by managers or supervisors, the
Personnel Department may design and
conduct training programs on specified topics
for particular work groups. The Personnel
Department can also refer outside training

Company Personal Assistance Program

consultants to departments to assist them in

organizing training programs specifically
tailored to individual needs. Program topics
may include resume writing and interviewing
skills, conflict resolution strategies, team
building skills, etc. Personnel Department
staff, staff from other KIMBERCO
departments, and/or outside consultants, may
lead workshops. The Personnel Department
also offers courses Company-wide. These
courses are described in a brochure sent to all
employees.

Career Counseling
Personnel Officers and Recruiters are
available by appointment to meet with
individual employees concerning career
planning, as well as to provide information
about job opportunities and position
requirements at the Company and policies
concerning job transfers, promotions, etc.

KIMBERCO Management and

Supervisory Development Training
Program
This program offers management and
supervisory training to all levels of
KIMBERCO management. The program also
offers technical training and skill workshops
to all employees. The Human Resources
Office should be contacted for details.

Performance Consulting
Departments may seek help in enhancing
their ability to achieve their business goals.
Internal performance consultants from the
Personnel Department provide this service

18
through an array of products and services
designed to support individual, team, and
organization development. Examples
include: needs assessment, group meeting
facilitation, planning, team building, and
group problem solving.

The Company recognizes that certain

personal problems, among them alcoholism,
drug abuse, and marital and family discord,
can seriously compromise an individual's
effectiveness. Such problems can be
successfully handled in the majority of cases,
provided that they are recognized in the early
stages and referral is made to the appropriate
resource. The Company Personal Assistance
Program is intended to provide specialized
counseling and referral services to troubled
individuals. Since an individual's
effectiveness may be compromised by the
personal problems experienced by members
of his or her family, the program is available
to spouses and children as well.

Implementation of this program and its

related procedures is the
responsibility of the
supervisor. Consideration
for referral will be based
solely upon evidence of
unsatisfactory
performance or the direct
request of the individual.
Compliance with
recommendations is the
voluntary responsibility of the individual.
Self-referral, prior to supervisory
intervention, by individuals suspecting that
they may suffer from a personal problem
which may jeopardize their effectiveness in
carrying out their responsibilities, will be
encouraged.

No one will be denied any rights or benefits

on the basis of participation in the program.
All referrals and treatment records are strictly
confidential. In instances where it is
necessary, sick leave will be granted for in-
patient treatment or rehabilitation on the same

19
 Policy on Conflict of Interest

basis as it is granted for other health

problems.

Implementation of this program does not

require nor result in any special privileges or
exemptions for participants, nor does it
supersede any existing personnel practice.
When refusal to accept counseling or repeated
treatment failure results in continued
ineffectiveness, normal personnel procedures
apply, up to and including termination.

The Company's concern with conflict of

interest has grown with the increasing
complexity of our society, the variety of our
relations with each other and a heightened
national sensitivity to these issues. In the
more traditional meaning of conflict of
interest, derive from the opportunities an
individual may have because of his or her
position at the Company to influence
KIMBERCO’s relationship with an outside
organization in ways that would lead directly
to the individual's personal financial gain.

In response to these concerns, the Company

has adopted the following statement of policy:

It is the policy of the Company that its

officers, employees and others acting on its
behalf have the obligation to avoid ethical,
legal, financial, or other conflicts of interest
and to ensure that their activities and interests
do not conflict with their obligations to the
Company or its welfare. Essential to effective
administration and adherence to this policy
are: a) disclosure to designated Company
employees of outside activities and interests,
including financial interests, which might
give rise to conflicts, and b) readily available
advice and counsel to individuals and to
Company department heads on any situation.

20
Accordingly, members and officers of the
Corporation, Company senior officers, and
other members of the staff in a position to
make decisions favoring one or another
outside interest should annually acknowledge
in writing their knowledge of this policy and
either affirm that they have no interest, direct
or indirect, in conflict with the Company's
interest, or identify any interests which have
the potential for conflict.

There are situations sufficiently complex that

judgments may differ as to whether there is or
may be a conflict of interest, and individuals
may inadvertently place themselves in
situations where conflict exists. Accordingly,
anyone with a personal interest that may have
the potential for conflict with the interests or
welfare of the Company should seek advice
and guidance by reviewing the circumstances
with the department head or the Human
Resources Director.

Other potential conflicts of interest may arise

in cases where an individual or individuals
may have to influence or be influenced
improperly by personal relationships, in ways
that are not consistent with the employment
policies and the principles to which the
Institute is committed. Potential conflicts of
interest of a particularly sensitive nature may
arise out of sexual relationships, especially in
the context of employment supervision and
evaluation. Because the effects on other
people at work are frequently not apparent to
the persons involved in a sexual relationship,
anyone with such an involvement should be
attentive to the feelings of colleagues and to
the potential conflicts of interest that may be
involved.

21
 Hiring and Placement

Section

3
HIRING POLICIES
RESPONSIBILITY FOR THE
RECRUITMENT OF CANDIDATES FOR
EMPLOYMENT POSITIONS IS SHARED
BETWEEN THE HIRING SUPERVISOR
AND THE HUMAN RESOURCES
DIRECTOR. SUPERVISORS ARE ASKED
TO PROVIDE A DETAILED
DESCRIPTION OF JOB DUTIES AND
EXPERIENCE REQUIREMENTS FOR
EACH AVAILABLE POSITION TO BEGIN
A SEARCH TO IDENTIFY QUALIFIED
CANDIDATES FROM WITHIN THE
COMPANY AND FROM EXTERNAL
RECRUITMENT SOURCES.

Definition of Payroll Categories

The payrolls for which the Human
Resources Department has primary
responsibility with regard to
employment, recruitment, and salary
administration are the following
employment payroll categories:

Administrative Staff - individuals

with professional or administrative
responsibilities appointed within the
departments.

Support Staff - These encompass

positions involving duties of a
primarily clerical/secretarial and

22
 Request for Personnel

administrative support
nature, as well as some
which support the
Company's data
processing operation,
and accounting
functions.

Terms, conditions and

benefits may differ in some respects
from those provided to other employee
groups. Support employee positions
are covered by the Federal Fair Labor
Standards Act and are subject to the
Act's overtime provisions.

Appointments in the payroll categories

described above may or may not have
a defined term limit and end date. In
all cases, appointments in these
categories may be terminated for cause
at any time, including misconduct or
unsatisfactory performance. They may
also be terminated for lack of work or
funds or for other operational reasons,
with notice as provided in Termination
Section.

As soon as it is known that a job will be

available, a Request for Personnel Form
must be sent to the Human Resources
Officer assigned to the department, with all
necessary signatures of approval and
payroll accounting information. This form
authorizes that a person may be hired, as
well as provides information about the job;
enabling Human Resources officers to
recruit and refer qualified applicants.
Special emphasis should be give to the
position description. Some points that
should be covered are the following:
a. The specific as well as general
responsibilities involved in the job;

23
 Posting of
Waiver of Posting
Available
Requirement
Positions

b. The particular department or division;

c. The people with whom the employee
can expect to interact
d. The number and types of positions
occupied by persons with whom the
employee will work.
The "Special Qualifications" section of the
Request for Personnel Form should include
the applicable experience and/or educational
requirements of the position, and any
particular skills needed to perform the duties
required.

Brief job descriptions of most positions are

posted on-line through the Human Resources
Department web page, and on the job board
located outside of the Human Resources
Department. These postings inform members
of the KIMBERCO community of the
availability of specific positions and facilitate
the identification of lateral and promotional
transfer opportunities by current employees.
Additionally, the postings initiate the external
recruitment of qualified individuals with
special emphasis on the identification of
disabled and Vietnam-Era veterans,
candidates with disabilities, and
underrepresented minority and women
candidates.

Departments may request the advertisement

of positions in professional journals or local
newspapers. To insure compliance with
Company policy all advertisements are to be
placed through the Human Resources
Department; however, the charges incurred
are in most cases the responsibility of the
department.

Under special circumstances a supervisor may

request a waiver of the Company posting
requirement for a particular position.
Requests will be evaluated on an individual

24
 Employment of Administrative
Employees by Two Departments

basis by the appropriate Human Resources

Officer for the department and must be
approved in writing by the Hiring Manager
for the area for all positions exempt from
overtime pay. The posting requirement for
positions covered by a union contractual
agreement may not be waived.

An employee should not perform services for

another department (other than those that are
a normal part of his or her duties at the
Company) without permission from the
Department Head of the home department.

Limited exceptions may be considered, on a

case-by-case basis, with the approval of the
area Vice President or CEO provided that:
a. An individual possesses special skills
not related to his/her primary work
and duties;
b. It is in KIMBERCO's interest to use
these skills;
c. Prior permission is obtained; and
d. A supplement to the individual's
salary is agreed upon to cover the
special activity, and is added to the
individual's annual pay
Such cases should be presented via the
Human Resources Director.

Supervisors should determine whether an

individual is already employed by
KIMBERCO on any payroll or in consulting
status before making an employment
agreement, regardless of the duration of the
appointment.

Supervisors who wish to employ a part-time

employee outside his or her home department
should discuss the particular situation with
their Human Resources Officer.

25
 EmploymentorofRegular
Temporary the Support or Service
Placement of
Individuals through Outside Agencies

Two departments on a permanent basis may

not normally employ support or Service Staff
members. Arrangements may be made on a
case-by-case basis for a part-time employee to
do work comparable to his or her permanent
position at KIMBERCO. Additional positions
must be at the same grade level and salary
rate as the employee's primary position. This
work should have the approval of supervisors
and Administrative Officers in both
departments as well as the appropriate Human
Resources Officers. Such arrangements will
be made only when the operational needs of
the Company require it and only when the
arrangements can be made without undue
administrative and payroll costs.

Supervisors should consider issues such as the

accrual of additional sick leave and vacation
hours by the home department and the
incurring of premium pay liability in the
evaluation of such a proposal. These
situations are effected by a personnel action
changing the individual's base workweek and
may involve an account charge transfer.

Part-time hourly employees who wish to work

more hours at KIMBERCO on a regular
schedule should discuss their interest with
their Human Resources Officer. If work
demands in their department do not permit
such a change, a transfer to another position
requiring more hours may be necessary.

Use of Agencies for Temporary Office

Support

It may be necessary from time to time for

departments to utilize the services of an agency
for temporary general office support. The
Human Resources Department has established a
partnership with an agency that, while not

26
mandated, is recommended as a resource for
temporary services.

The following is general information that

departments should be aware of in connection
with conducting business with agencies, which
offer temporary employment services:

Payment - Payment to an agency for temporary

personnel is made for actual time worked at the
hourly billing rate negotiated and agreed upon.
Payment is not made for holidays, vacation days,
and sick days.

Straight time - Straight time billing rates for

hours worked apply to eight (8) per day or forty
(40) per week.

Overtime Billing Rates - Overtime billing rates

apply to hours worked in excess of eight (8)
hours per day or forty (40) hours per week.

Withholding of Taxes - Agencies are responsible

for withholding taxes and the payment of wages
for temporary personnel.

KIMBERCOWeb Policies and Practices -

Temporary personnel should be made aware of
KIMBERCOWeb policies and practices and are
expected to comply with such during the
effective period of assignment. KIMBERCOWeb
retains the right to terminate temporary
personnel at any time without prior notice.

Immigration Reform and Control Act 1986 -

Agencies are responsible for compliance with
this law, i.e., for making sure that their
personnel are properly authorized to work in
the United States.

Takeover Policy/KIMBERCOWeb Hire of

Temporary Personnel - Temporary personnel
who become candidates for regular positions at
KIMBERCOWeb must complete whatever
temporary employment period the agency
requires, usually four (4) to six (6) weeks. The
KIMBERCOWeb partnered temporary agency
does not have this requirement.

27
 Use of Agencies in Hiring Regular
Employees

The agency should be contacted when the

department is considering hiring a temporary
individual as a regular KIMBERCOWeb
employee to determine what the relevant
takeover policy is. The department should also
contact the Human Resources Department for
guidance and assistance with the hiring process.

Suggestions For Utilizing Temporary

Personnel
1. Appoint an KIMBERCOWeb employee
to supervise the temporary individual.
2. Make available to the temporary
individual all equipment and materials
he/she will need to perform the
assigned work.
3. Plan the workload in advance; prepare a
reasonable schedule.
4. Provide detailed instructions.
5. Monitor the work performed and
provide feedback.

Department Heads, Administrative Officers, or

other supervisors may wish to expand an
available pool of applicants to fill a specific
position by enlisting the aid of a commercial
employment agency. It is expected that such
agency referrals will be sought primarily for
professional level positions and that the
possibility of assistance from non-fee sources
such as the Arizona Department of Employment
and Training will be investigated before
commercial agencies are considered. Discussions
with the appropriate Human Resources Officer
should aid in the selection of recruitment
resources that are available to assist the
department.

Once an agency has been selected, a position

description may be submitted to the agency by
the department supervisor or the appropriate

28
Human Resources Officer. An acknowledgement
form should be provided to the agency from the
Human Resources Office, which must be signed
and returned before referrals can be made or
accepted. The form contains a statement of the
Institute's commitment to the goals of equal
opportunity and affirmative action, as well as
the following stipulations:

a. All referrals must be made through the

Human Resources Office for specific
positions as identified by
KIMBERCOWeb job numbers.

b. Agency placement fees normally will

not be paid for former KIMBERCOWeb
employees who have terminated within
two years of the date of referral.

c. In instances where an individual

referred by an agency is hired for an
KIMBERCOWeb position other than
the one for which he or she was
originally referred, KIMBERCOWeb
will pay the fee, if the hire is within
one year of the original referral and if
the hire clearly can be attributed to the
initiative of the agency, rather than to
that of the Company or job applicant.
KIMBERCOWeb will make the final
decision with regard to the
appropriateness of a fee in such
instances.

d. Applicants whose resumes are

submitted to KIMBERCOWeb both
independently and through an agency
will be considered independent
referrals and no placement fee will be
paid, unless the hire can be traced
clearly to the agency's initiative.

e. The placement fee for applicants who

were referred by two separate agencies
will be paid to the agency whose
referral arrived first in the Human
Resources Department.
KIMBERCOWeb will be the final

29
 arbiter in such decisions, which will
generally be determined on the basis of
which agency's referral can more
directly be related to the hire.

f. A fee schedule must be provided by the

agency to the Human Resources
Department prior to the referral of any
applicant. A reimbursement schedule as
indicated below must be honored by
the agency.

Payment of Agency Fees

Institute departments will be responsible for
providing funding within their budget
allocations to cover agency fee expenses.
Departments should forward all invoices for
agency fees, accompanied by a confirming
requisition, to the           for processing and
payment.

Reimbursement Policy
Any agency with which an agreement to seek
candidates is made must agree to honor the
following reimbursement policy, or have a
comparable policy:

If an employee referred by an agency terminates

his or her employment voluntarily or is
terminated by KIMBERCOWeb for cause within
30, 60, or 90 days, 90%, 60%, or 30%
respectively of the agency fee will be refunded
to KIMBERCOWeb.

Hiring a Candidate Referred by an

Agency
Departments that select a candidate who has
been referred by an employment agency should
contact their Human Resources Officer to
finalize the hiring procedures prior to extending
an offer.

30
 Short-term
Testing
Interviewing
Applicants
Assignments
Policies
forand
Employment
Procedures

KIMBERCOWeb Temps: Individuals who are

selected by KIMBERCOWeb managers and
referred to, screened and hired by B&B
Employment Agency (our designated outside
agency) for short-term assignments; i.e., those
that typically have an end date, including
summer employment. B&B Employment
maintains all necessary personnel records. B&B
Employment maintains all payroll records. B&B
Employment is responsible for responding to
KIMBERCOWeb Temps' complaints and
grievances and, at the request of
KIMBERCOWeb, shall terminate any
KIMBERCOWeb Temps assignment at
KIMBERCOWeb. Both KIMBERCOWeb and
B&B Employment may not employ
KIMBERCOWeb employees at the same time.

The Human Resources Office is responsible for

the development and implementation of all tests
used in the evaluation and selection of
applicants for employment positions at the
Company. Because testing procedures are
subject to federal regulations, individual
supervisors are not authorized to administer
tests. Unusual circumstances should be discussed
with the appropriate Human Resources Officer.

Human Resources Officers and Human

Resources Recruiters interview and refer
applicants to departments for supervisory
interview and selection. The interview is a
valuable tool for the supervisor in assessing the
applicant's suitability for the position. It is also
the applicant's principal opportunity to gain
knowledge concerning the duties and
responsibilities of the position and the
immediate and extended working environment.

The supervisor or other person conducting the

interview should prepare for it by studying the
application form or resume, by reviewing the
qualification requirements established for the

31
job, and by preparing ahead of time a list of
interview questions. The Human Resources
Office has a list of appropriate interview
questions for various job postings. NOTE:
Supervisors should requests a list of appropriate
interview questions, which vary depending on
job type. In addition, the interviewer should
list specifics to be explored, such as apparent
gaps in the applicant's work record, ambiguous
or contradictory entries on the application, etc.

The interviewer should be aware that the

applicant may be inexperienced in the job
interviewing process and may need to be put at
ease during the interview, so that he or she can
participate fully.

Interviewers should also be aware that questions

that would ordinarily be lawful may, in some
circumstances, be held to be evidence of
unlawful discrimination; for example, if
information is requested which is not job related
and has a disproportionately burdensome effect
on women and minority group members.

Allowable questions are any which pertain to

the background of the candidate both in
education and experience essential to actual
performance of the job. These include:
 Any incomplete information on the resume
or application for further review.
 Why applicant left former job and what
kind of references he or she would receive
from former employer.
 What applicant's prior job duties consisted
of and what he or she liked or disliked about
prior jobs.
 In what kind of job duties, hours, days, etc.
applicant is interested.
 Allow applicant to mention and discuss
what he or she feels is relevant to the job for
which he or she is applying.
 Citizenship or working visa but not country
of origin.
Listed below are some specific guidelines in this
matter. The following may also provide

32
 guidance for supervisors in the reference
checking process (see also Checking References):

Subject What May Be Asked What May NOT Be Asked

Age Are you over 18 (or 21 for certain jobs)? How old are you? What is the date of your birth?

Gender n/a A pre-employment inquiry as to gender on an application f

Experience Inquiry into work experience. Inquiry into n

countries applicant has visited.

National Origin n/a Inquiry into applicant's lineage, ancestry, national orig
nationality; nationality of parents or spouse; applicant's nat

Religion n/a Inquiry into an applicant's religious denomination, affiliatio

religious holidays observed. Avoid any questions rega
affiliations that would identify religion.

Marital Status n/a Are you married? Where does your spouse work? What are
any? What was your maiden name?

Disability Specific questions related to job duties (e.g. Do you Do you have a disability? Have you ever been treated
have a driver's license? Can you lift fifty pounds?) (Listing diseases.) Has any member of your family ever
diseases?

Name Have you ever worked for KIMBERCOWeb under Original name of an applicant whose name has been
a different name? Is any additional information otherwise. Maiden name of a married woman. Has ap
relative to change of name, use of an assumed another name, state name, or address?
name, or nickname necessary to enable a check on
your work record? If yes, explain.

Address or Applicant's place of residence Do you rent or own your home? How long at each particula
Duration of
Address

Birthplace n Birthplace of applicant. Birthplace of applicant's paren

relatives.

Photograph a Requirement that an applicant affix a photograph to the em

time before hiring.

Education Inquiry into the academic, vocational, or n/a

professional education of an applicant and the
public and private schools he or she has attended.

Citizenship Are you legally authorized to work in the United Inquiry as to country of citizenship. Whether an applican
States? born citizen; the date when the applicant acquired cit
applicant produce naturalization papers or first papers. Wh
naturalized or native-born citizens of the United States. Th
spouse acquired citizenship.

Language What languages do you read fluently? Write Inquiry into how applicant acquired ability to read, write, o
fluently? Speak fluently?

Height, Weight, Questions regarding height, weight, or strength n/a

Strength may be asked only if the employer can prove these
requirements are necessary to do the job.

33
Relatives Names of applicant's relatives already employed by Names, addresses, ages, number, or other information con
KIMBERCOWeb. or other relatives not employed by KIMBERCOWeb.

Applicant Flow Referral System

Notice in Case of Name and address of person to be notified in case of n/a
Emergency an accident or emergency.

Military Have you ever been a member of the armed Inquiry into an applicant's general military experience or ty
services of the United States or in a state militia? If
so, did your military experience have any
relationship to the position for which you have
applied?

Character Have you ever been convicted of a felony? If so, Have you ever been arrested? (an employer's use of an indiv
when, where, and what was the disposition of the employment would, in the absence of business necessity,
offense? Have you been convicted of a human rights law.)
misdemeanor during the last five years, except for a
first conviction for simple assault, disturbing the
peace, drunkenness, speeding, or other minor traffic
violations? Have you been convicted of a
misdemeanor, which occurred more than five years
prior to the date of application where your term of
imprisonment was completed less than five years
prior to the date of application?

Organizations Are you a member of any professional Inquiry into applicant's membership in nonprofess
societies or organizations, etc.? (Exclude clubs, lodges, etc.)
organizations, the name or character of
which indicates the race, creed, color, or
national origin of its members.)

References Names of appropriate employment a

references.

Further questions relating to the interviewing process

should be directed to the appropriate Human
Resources Officer.

At the time of referral by the Office of

Employment Services, an applicant's
resume/application is forwarded to the
department with a referral form attached. The
referral form provides information regarding the
applicant's name and the position being applied
for, the name of the department and the
department interviewer, and the name of the
Human Resources Officer referring the
applicant. After the position is filled, a summary
questionnaire is sent to the hiring manager
regarding the outcome of the hiring process and
the status of each applicant referred.

The completed questionnaire should be returned to

the Human Resources Department as soon as
possible after a selection is made.

34
 Checking References
Notification of Interviewed Applicants

Employment references should be checked for

all applicants prior to an offer of employment.
These references will be evaluated with the
hiring supervisor in relation to the applicant's
education, experience, abilities, and the
requirements of the job. Educational and
personal references are not routinely evaluated;
however, a supervisor may request that this
information be checked if circumstances
warrant it.

As it is normally the responsibility of the

interviewing Human Resources Officer to obtain
references, a written summary of this
information will be retained in the person's file
in the Human Resources Information Services
Office. Supervisors who wish to take
responsibility for obtaining references should
consult with the appropriate Human Resources
Officer and provide written information to the
Human Resources Department for retention in
the employee's file.

In order to assure a positive relationship with

the Company's applicant community, each
person who is interviewed by a departmental
supervisor should be notified of the result of the
selection process. Such notification can take the
form of a telephone call or a personal letter,
depending upon individual circumstances and
styles.

Since interviews for candidates for professional

positions (Administrative Staff) from outside the
Company are normally arranged directly by the
departments, the hiring department should
initiate notification of such candidates, once a
final selection has been made.

Transfer applicants for all categories of

employment, as well as outside applicants for
Support and Service staff their Human

35
 Offer of Employment
Establishment
Probationary Period
of a Starting Salary

Resources Officer and/or the department

interviewer notify positions of the results of
their interviews.

Extending an Offer of Employment

After discussions between supervisors and the

appropriate Human Resources Officer, the
Human Resources Officer makes an offer of
employment to a candidate. The offer may
include information regarding the job title,
grade or salary range, rate of pay, length of
appointment, hours per week or percentage
effort, and information regarding any pertinent
Company procedures (such as completion of
employment eligibility forms), or medical
approval, if required. The Human Resources
Officer formalizes this offer in writing.

The supervisor has the responsibility to make

the final decision to hire an applicant and
informs the Human Resources Officer who
referred the applicant to the department. The
Human Resources Officer will recommend a
starting salary, which is consistent with the
classification or salary range of the position and
education and experience of the candidate.
Salary comparisons are made within the
appropriate unit, the department, or payroll. A
salary offer should not be made to a candidate
prior to this evaluation by the Human Resources
Officer.

Establishment of a Starting Date

After the offer of employment has been
accepted, a mutually agreeable starting date
should be determined and conveyed to the
Human Resources Officer.

At the time a job offer is extended to an

applicant, the probationary period, which exists
for each payroll group at the Company should

36
 Procedures for New Employees

be defined and explained to the new employee.

The probationary period is a period of time,
normally three to six months, during which a
new employee's actual performance is compared
with the job standard. If a supervisor determines
that work performance is unsatisfactory at any
time during this period, a discussion should be
held with the employee pointing out the
deficiencies and the measures that should be
taken to correct them. If the employee
continues to perform at an unacceptable level, a
supervisor should review the provisions in this
Manual under Termination for Poor
Performance or Failure to Comply with Institute
Policy, and consult with the appropriate Human
Resources Officer.

Following the probationary period and a

favorable performance review by the supervisor,
an employee is considered to be a regular
employee. There is the continued expectation,
however, that employees will maintain
acceptable standards of performance throughout
their employment at the Company, and that
periodic performance evaluations by supervisors
with employees will continue to occur.

Once an individual has accepted an offer of

employment at KIMBERCOWeb, he or she must
visit the Human Resources Office to complete the
following procedures before being put on the
payroll. The assistant to the Human Resources
Officer with whom he or she interviewed for
information regarding these procedures will
contact new employees.

Employment Eligibility Verification

In compliance with the Immigration Reform
and Control Act of l986, KIMBERCOWeb
requires that each new person hired in any
employment category completes an I-9
(Employment Eligibility Verification) form
attesting that he/she is either a U.S. citizen,

37
permanent resident, or foreign national who has
permission to work in the U.S. The new
employee must produce specific documents,
which verify identity and
authorization/permission to work. The
Company is required to examine the documents
presented for authenticity and complete the
employer's section of the I-9 form within three
working days of the hire date or three days from
the time employment commences. NOTE: If the
above requirements are not met, a candidate
cannot be employed at the Company.

For all positions, the verification process and

filing of I-9 forms will take place in the Human
Resources Office. The I-9 form and documents
are then sent to Human Resources Dept. with
the position appointment form to be retained in
the employee's personnel file.

Verification of employability is also required for

temporary KIMBERCOWeb Temps and student
employees. In the case of KIMBERCOWeb
Temps employees, the I-9 form and documents
are processed and maintained by the hiring
department. Questions relating to this process
may be directed to the Human Resources Office.

Tax Forms
Each new employee should complete the
appropriate tax withholding certificates. Failure to
file these forms will require the Payroll Office to
withhold taxes based on zero exemptions at the
single withholding rate. Tax forms are forwarded
to the Payroll Office from the Human Resources
Office.

Health Screening Tests

It is possible that certain occupations may
require health-screening tests before approval of
employment. Employees will be notified if such
health screening tests are required. For more
information, contact the Human Resources
Office.

Identification Cards
All regular full-time and part-time employees
must obtain an KIMBERCOWeb Identification

38
 Invention and Proprietary Information
Agreements

Card from the Human Resources Office. A

photograph is taken at the time the card is
produced. The KIMBERCOWeb identification
card contains the name, KIMBERCOWeb
identification number, expiration date,
photograph, and affiliation information of the
person identified. Cards can be issued once
information has been received to put an
employee on the payroll. The KIMBERCOWeb
identification card identifies an individual as a
member of the KIMBERCOWeb community.
The KIMBERCOWeb identification card may
also be required to access certain buildings and
parking lots. These cards are not transferable to
other individuals under any circumstances.

Lost identification cards should be reported

immediately to the KIMBERCOWeb          .

Upon termination of employment (for reasons

other than retirement), the identification card
must be returned to the Human Resources
Office. Individuals who retire from the
Company may retain their identification cards.

All members of the KIMBERCOWeb

community who participate in or who use
significant funds or facilities administered by the
Institute must agree to the terms in
KIMBERCOWeb's Invention and Proprietary
Information Agreement and sign the agreement.
By accepting such funds or using such
significant facilities, the individual agrees to
assign to KIMBERCOWeb or its designate his or
her title to Intellectual Property created through
the use of such funds or facilities.

It is the responsibility of the administrative

officer of each department to distribute these
forms and to collect signed copies. The forms
should be signed in triplicate: one copy to be

39
 Orientation to the Work Group

retained by the individual, one by the

department, and one forwarded to the Human
Resources Offices.

Any questions regarding the meaning of any

terms in this agreement should be addressed to
the Human Resources Office.

It is the responsibility of the Human Resources

Personnel and the Supervisor to introduce, orient,
and integrate the new employee to his or her new
work situation. The orientation will be performed
in two phases. A member of the Human Resources
Personnel Staff will present phase one. The new
employee’s immediate Supervisor will present
phase two. The Company has devised a formal
Orientation Program for all new employees. It
consists of two (2) phases:
 Phase I --
Personnel
Department
 Phase II --
Immediate
Supervisor
During Phase I, HR Personnel cover a wide range
of topics. First, new employees are provided with a
brief overview of the Company. Then, employees
will be provided with the up to date information on
policies and procedures*. Third, we will discuss
issues important about pay. Last, but certainly not
least, employee benefits, and company safety
information. The items listed above are just a few
of the Company policies typically discussed.

For the duration of Phase II, the new employee’s

immediate Supervisor will typically cover such
items as department functions, job duties, more
policies and procedures and finally a department
tour. It is important that each phase of the two (2)
phases of the Orientation Program be completed.

It is suggested that Human Resources Personnel

cover the following issues as applicable:

40
 a. Overview of the organization – brief
history, what the organization does
(products/services), where it does it
(branches, divisions), how it does it
(nature of operations), structure
(organization chart), etc.
b. Policies and procedures – work
schedules, vacations, holidays,
grievances, identification badges, leave
of absences (sickness, educational,
military, maternity/paternity, and
personal), promotion, transfers,
training, etc.
c. Compensation – pay scale, overtime,
holiday pay, shift differentials, when
and how paid, time clock, etc.
d. Benefits – insurance, retirement, tax
sheltered annuities, credit union,
employee discounts, suggestion system,
recreational activities, etc.
e. Safety Information – relevant policies
and procedures, fire protection, first aid
facilities, safety committee, etc.
f. Union – name, affiliation, officials,
joining procedure, contract, etc.
g. Physical facilities – building/office
layout, employee entrance, parking,
cafeteria, etc.
It is suggested that supervisors cover the
following issues as applicable:
a. Describe the employee's responsibilities
and job duties and how they relate to
the work of the group or department;
b. Outline the standards of work,
attendance, and conduct expected of
the employee;
c. Explain the administrative procedures
of the department or group, such as
hours of work, lunch hours, reporting
absences, parking, etc.;
d. Introduce him or her to the employees
with whom he or she will be working,
within the group and in other related
areas;
e. Show the new employee the physical
layout of the office and building: the

41
 Benefits Orientation Meetings

lunchroom, restroom facilities,

stockroom, etc.
Explain pertinent safety regulations and
demonstrate the use of any necessary office
equipment.

Shortly after beginning work, all new benefits-

eligible employees who are scheduled to work at
least 50% of a normal work schedule and for a
period of three months or more are invited to
attend benefits orientation meetings, which are
conducted by the staff of the Human Resources
Department. During these orientation meetings
employees may sign up for Company benefits
such as health insurance, as well as learn about
personnel policies, wage and salary review
procedures, and general information about
Company activities and facilities. The Human
Resources Department arranges scheduling for
these meetings; employees will be notified when
the meetings are scheduled.

Reimbursement of Travel Expenses for

Employment Interviews and Relocation
Reimbursement of travel expenses for
employment interviews and relocation of newly
recruited personnel is commonly limited by
departmental budgets and/or the terms of
contracts. No commitment for reimbursement
should be made without first consulting the
appropriate Department Head or Manager to
ascertain that such reimbursement is authorized.

The following special travel policies are for

guidance in the normal operation of the
Company. Information regarding employee
travel for Company business should be referred
to the HR Director.

Employment Interview

42
 Moving Expenses

Prospective employees may be reimbursed, if

authorized, for travel expenses incurred in
connection with an employment interview in
California/Arizona or elsewhere in accordance
with the normal travel policy for employees.

At the Company’s discretion, and subject to the

department budgetary and contract limitations
noted above, newly hired employees may be
reimbursed for moving expenses. Generally, the
term "moving expenses" means only the
reasonable expenses of:
a. Moving household goods and personal
effects from the former residence to the
new residence;
b. Traveling (including meals and lodging)
from the former residence to the new
place of residence.
It is recommended that those monitoring travel
expenses for a department or area contact the
Human Resources Department for further
information as to what constitutes approved
travel and moving expenses.

Because of the high priority of the work and

time schedules in certain activities of the
Company, it is occasionally necessary to recruit
members with special qualifications to fill an
immediate and specific need and to bring them
to the place of permanent employment
immediately, before they are able to locate and
move into new local residences.

Such employees may incur unusual relocation

expenses such as meals and lodging while
occupying temporary quarters close to the new
principal place of work (during any period of 30
consecutive days after obtaining employment),
the cost of living in a hotel or motel until they
are able to move into a new home, travel and
subsistence expenses incurred in house hunting,

43
 Transfer Policies

etc. These costs are reimbursed on an actual cost

basis; the nature of the cost and its extent should
be discussed with each employee on a case-by-
case basis.

KIMBERCO is committed to providing career

development opportunities for its employees. In
seeking to foster an open and supportive
environment, which will assist personal growth,
the Company takes the position that individuals
are responsible for the planning and
management of their own careers. To facilitate
this individual responsibility, the Company has
established a wide range of policies and
programs, including, job-sharing and part-time
employment, personnel development programs,
and the job posting system.

The Company encourages employees to take

advantage of development opportunities
whether they lead to careers at KIMBERCO or
outside the Company. Transfer from one
position to another at the Company is a part of
this process. Available positions are listed with
the Human Resources Department and are
posted on the Bulletin Board. Employees are
welcome to discuss opportunities in confidence
with their HR Personnel. The following
procedures should be followed when an
employee decides to investigate a job transfer
within the Company.

Recommended Length of Service in Job

It is hoped that an employee's initial placement
in a job at the Company is a successful one, and
that requests for transfer will be an outcome of
one's readiness for a change in responsibility. It
is normally expected that an individual will
remain in a position for a minimum of one (1)
year. Unusual situations, which lead a person to
request a transfer within a one (1) year period,

44
 Initiation of Transfer/Notification of
Supervisor

should be discussed in detail with supervisors

and the HR Director.

Employees may find opportunities within their

own departments or elsewhere at the Company.
Discussion between present supervisor and
employee regarding career development is
encouraged. Career opportunities also may be
discussed in confidence with the HR
Department for the department in which the
employee currently works.

An employee who would like to interview in

confidence should discuss this situation in detail
with his or her HR Director. If confidentiality is
advisable, up-to-date references may not be
available until the employee is being considered
as a final candidate. In the event that current
references are needed, the employee must then
notify the current supervisor that a reference
request is forthcoming.

It is important to note that an employee is

expected to continue to perform fully the duties
of his or her current position during the period
of time needed to secure a new position.

The Company policy does not require an

employee to establish a fixed date by which the
transfer will be accomplished. Any difficulties,
which arise in the working relationship as a
result of an employee’s decision to seek another
position, should be discussed with the HR
Director to seek immediate resolution.

Transfer Procedure
Transfer dates should be arranged through the
HR Department and the two departments
involved. At least two weeks notice by Support
Staff and one month's notice by Administrative
staff should be given to the current department

45
 Reinstatement of Former Employees

before a date of transfer. The department from

which an employee is transferring submits a
Notice of Resignation, Termination,
Cancellation, Retirement, or Transfer, with the
Employee Evaluation section completed, to the
HR Department in advance of the transfer date.

Lateral Transfer between Equal

Positions
On occasion, an employee may wish to consider
transferring to another position at the Company,
which has a range of job duties and
responsibilities equal to his or her current
position. Such a lateral change can be beneficial
in that it offers a fresh opportunity to establish
new professional relationships, to take on new
or more varied job assignments, and to develop
new career interests. By considering such lateral
changes, an individual may increase the number
of opportunities he or she has for moving into an
environment whose size and structure may offer
greater potential for career development and
eventual advancement.

A lateral transfer can easily provide a significant

benefit to an individual in terms of
environment, job interest, and longer-term
career potential; however, it is by definition a
change between two equal positions. It is the
Company's policy that a lateral transfer as
defined above is accomplished without the
increase in base salary that accompanies a
promotion or a reclassification involving a
significant increase in salary range.

Employees on the Administrative and Support

staffs who are laid off or who terminate
voluntarily from the Company, and are
reemployed by the Company at a later date, are
eligible for the reinstatement of certain benefits
according to the eligibility requirements noted
below.

46
 Formula for Reinstatement of Former
Employees

General Policy Statement

Reinstatement upon reemployment applies only

to the benefits of vacation eligibility; the
probationary rules applying to sick leave
eligibility for new staff still apply.
Reinstatement of the benefits of vacation
eligibility, and of sick leave balances for those
employees laid off is explained below. Eligibility
for other applicable KIMBERCO benefits at the
time of reemployment is explained in the
Summary Plan Descriptions for the specific
plans, which are available from the Human
Resources Department.

Supervisors should be aware at the time of

reemployment of an individual that on the basis
of this policy, the responsibility for payment of
sick leave and vacation balances falls on the
hiring department. Reinstatement upon
reemployment from any form of termination
other than layoff may be granted only once to
any individual, regardless of circumstances.

A former employee who is reemployed by the

KIMBERCO will be eligible for reinstatement of
his or her prior length of service for purposes of
determining eligibility for vacation and the
other benefits according to the service
requirements outlined in the following table:

Prior Length of Service Allowable Length of

at KIMBERCOWeb Break In Service

Less than 1 year None

1 but less than 2 years 1 year break

47
2 but less than 5 years 2 year break

Reinstatement of Laid
Conditions of Work OffPersonal
and Employees
5 but less than 10 years 3 year break
Conduct

10 but less than 20

4 year break
years

20 or more years 5 year break

Eligibility for these benefits are based on time

actually worked at the Company and does not
include the period of absence from KIMBERCO.
An adjusted service date at the time of
reemployment is used as the vacation eligibility
date.

An employee who has been laid off and who has

not rejected any comparable job offer at the
Company will be eligible for reinstatement for
his or her prior length of service, and for the
period of absence between termination and
reemployment, if reemployed within two years
of termination. This reinstatement policy applies
to the determination of eligibility for vacation
benefits. In addition, an employee that has been
laid off who meets the above criteria will have
any prior unused sick leave balance restored at
the time of reemployment.

The guiding policy relating to conditions of

work and personal conduct is that the quality of
work and the atmosphere in which it is done be
consistent with the reputation of KIMBERCO.
An employee's conduct when working for or
representing the Company, or when on the
Company premises, should meet acceptable
standards of the community and show respect
for the law and the rights of others.

It is KIMBERCO's policy to have as few rules

and regulations as are consistent with efficient
administration and general welfare. Some
departments may have specific rules, which
reflect their own situations and which must be
consistent with any generally applicable rules
and regulations. Exceptions to specific rules may

48
 Policy Regarding Drug-Free
Workplace at KIMBERCO
Policy Regarding the Use of Alcohol

create more problems than they resolve.

Exceptions should therefore be made only for
important and clearly understood reasons.
Managers and supervisors should consult with
their Personnel Officer before making
significant exceptions.

KIMBERCO observes all laws and regulations

governing the sale, purchase, and serving of
alcoholic beverages by all members of its
community and expects that these laws will be
adhered to at all events associated with the
Company.

No alcoholic beverages may be served or

consumed in any work area of the Company at
any time, except in Company dining areas or at
official Company functions. Violations of this
policy may be grounds for serious disciplinary
action, up to and including discharge.

The unlawful use, manufacture, distribution,

dispensation, sale, or possession of any illegal
drug is prohibited in any work area of the
KIMBERCO at any time. Violations of this
policy may be grounds for serious disciplinary
action, up to and including discharge.

The use of illegal drugs in the workplace can

obviously affect the work of the drug user and it
can also affect those who work or study with the
drug user. Problems arising from drug abuse can
be successfully handled in a majority of cases,
provided they are recognized in the early stages
and referral is made to the appropriate resource.
Individuals who are suffering from drug abuse
are encouraged to seek assistance from this
program. All referrals and treatment records are
strictly confidential. In instances where it is

49
 CompanyPolicies
General Smoking Policy

Section

4
necessary, sick leave will be granted for
inpatient treatment or rehabilitation on the
same basis as it is for other health concerns.

Smoking is prohibited in all spaces of all

KIMBERCO service buildings located in California
and Arizona. This policy is intended to be self-
enforcing, and the cooperation of all members of
the KIMBERCO community is expected.

In work situations where a non-smoker is made

uncomfortable by a fellow worker's smoke,
reasonable accommodation should be made to
resolve the non-smoker's discomfort. It is hoped
that such accommodation can be agreed to by
those in the work location, with the help and
guidance of the supervisor and, if necessary, the
Human Resources Department.

POLICY ON GENERAL
ABSENCES

An employee is responsible for keeping the

Supervisor informed of all absences. Employee
should provide notice in accordance with
departmental procedures. Limited-time and
temporary employees receive no pay for
absences.

EXCUSED ABSENCES

50
 Funeral
Jury DutyAttendance

Religious Observances

A full-time or part-time regular employee is

allowed up to three (3) consecutive regularly
scheduled work days absence with pay for
necessary attendance to funeral matters for death
in the immediate family occurring in the
metropolitan area of residence, or five (5)
consecutive regularly scheduled work days for
the death of an immediate family member
occurring over 150 miles from such area.
Immediate family is defined as parent,
stepparent, child, stepchild, sibling, spouse, same
sex domestic partner, parent-in-law, son-in-law,
daughter-in-law, grandparent, grandchild, legal
guardian, or other relative for whom they are
directly responsible.

In the event of the death of other relatives,

absence with pay may be granted up to one day
for funeral attendance. Time off with pay may
be granted at the supervisor's discretion for an
employee to attend the funeral service of other
associates or close friends. Time taken in excess
of these allowances may be granted without pay
or charged to vacation or floating holiday if
available.

Full-time or part-time regular staff members

selected for jury duty are granted time off
without loss of pay. Employees are permitted to
retain their jury duty compensation to defray
expenses. They are expected to report to work on
any day or portion of a day that they are excused
from jury duty.

The Company makes every reasonable effort to

accommodate individual religious observances.
Supervisors may grant time off with pay to full-
time and part-time staff members to observe
religious obligations that may occur during

51
 Personal Business
Unexcused
Education Absences

normal working hours, provided the lost time is

made up within the same pay period or charged
to vacation or floating holiday if available.

At the discretion of the supervisor, full-time

employees may have reasonable time off with
pay for non-medical professional appointments
or other personal business that cannot be
arranged during non-working hours, provided
the lost time is made up within the same pay
period. Otherwise, non-exempt employees will
have the absence charged to accrued vacation or
have their salaries reduced accordingly. Exempt
employees who have no accrued leave will not
have their salaries reduced unless the absence is
one day or more. Part-time, limited-time and
temporary staff and casual are expected to
schedule all such appointments during non-
working hours.

While employees are encouraged to continue

their educations, the process of education should
neither detract from nor interfere with the
employees’ performance on the job. Employees
who want to take courses during normal working
hours must have their department heads'
approval.

An employee may not be absent for any reason

without informing the supervisor. Absences that
have not been approved by the supervisor will be
charged as leave without pay. An employee who
is absent for three (3) consecutive days without
contacting the supervisor is subject to discharge
for abandonment of the position. A review of the
circumstances by Human Resources may result
in reinstatement of the employee. Habitual
absenteeism and tardiness will be handled in
accordance with the Company's progressive
counseling procedure.

52
 Definition

Section

SICK LEAVE POLICY

SICK LEAVE IS ABSENCE WITH PAY FOR TIME LOST
DUE TO A BONA FIDE NON-WORK RELATED ILLNESS
OR INJURY, PREGNANCY, OR DENTAL OR MEDICAL
APPOINTMENTS OF ELIGIBLE EMPLOYEES. IN THE
EVENT THAT THE ILLNESS OR INJURY OF AN
EMPLOYEE’S CHILD, SPOUSE , SAME SEX DOMESTIC
PARTNER, OR PARENT REQUIRES THE ABSENCE OF
THE EMPLOYEE, SUCH ABSENCE MAY BE CHARGED

53
 EarningSick
Taking SickLeave
Leave

TO ACCRUED SICK LEAVE AS PROVIDED IN SECTION

(C) BELOW.
The reason for taking sick leave may qualify as a
'serious health condition' under the Family and
Medical Leave policy. If the employee qualifies
and the reason for taking the sick leave qualifies,
the Family and Medical Leave policy must be
followed. (See The Family and Medical Leave
Policy).

Employees will accrue six (6) days per year (pro-

rated for partial year employment0 available for
regular full-time employees for their own illness
or to care for those in the Employee’s immediate
family (parent/spouse/children). The sick leave
benefit is provided to cover those legitimate
illnesses that may occur. The attendance policy
is designed to address unexcused absences that
would exceed the allowed sick time benefit.

Sick time accrues at the rate of 1.846 hours per

pay period which is basically equivalent to 1 full
day per 2 month period of time. Employees will
no longer be permitted to borrow against
unearned sick time. Employees will now be
permitted to roll over sick time to the new
calendar year. A maximum of six (6) days will
be allowed to carry over to the new calendar
year. Employees with accrued sick in excess of
six (6) days at any December 31 of every year
will be paid out at 50% of the excess balance.
Carry over and pay out provisions allow us to
reward the employees that are at work and do
not have excessive attendance issues.

An employee who must be absent due to non-

work related illness or injury, pregnancy, or
dental or medical appointments must notify
his/her supervisor or designee in accordance
with department procedures. Employees may be

54
required to furnish a written physician's
statement. Employees who must be absent due
to the illness or injury of their child, spouse,
same sex domestic partner, or parent may charge
the absence to accrued sick leave. Employees
who must be absent to accompany their child,
spouse, same sex domestic partner, or parent to a
dental or medical appointment may charge the
absence to accrued sick leave. A written
statement from the physician may be required.

Non-exempt employee(s) may take sick leave in

increments of an hour. Exempt employee(s) may
take sick leave in increments of not less than
one-half day.

NOTE: These leave limitations do not apply

when sick leave is used for approved Family and
Medical Leave.

Paid sick leave cannot be taken in advance of

being earned. If paid sick leave is exhausted,
non-exempt employee may charge absence to
accrued vacation or leave of absence without
pay. Exempt employee may charge absences to
vacation or, if one day or more, to leave of
absence without pay. If the employee and the
reason for taking sick leave qualify under the
Family and Medical Leave policy, pay for
exempt employees may be reduced for
intermittent leave of less than one day.

Employees who elect to return to work

following sick leave or authorized leave of
absence for health reasons are granted full
reinstatement rights. Employees absent on paid
sick leave continue to accrue sick leave and
vacation. Company holidays occurring during
sick leave are not charged to sick leave. If an
employee is on sick leave and the Company
officially closes, the time the Company is
officially closed will not be charged to accrued
sick leave. However, the Company must be
officially closed for at least one-half day.

If an employee does not expect to return to

work following sick leave and/or leave of
absence, the individual should submit a written

55
 Transfer of Sick Leave
Termination

resignation to be effective at the end of the

authorized sick leave/leave of absence period.
Employees who have been absent due to serious
illness must provide statements from their
licensed health care provider stating that they
are able to return to work before being allowed
to return. Individuals must notify their
supervisors immediately upon release from their
licensed health care provider in order to arrange
for an appropriate reporting back to work date.

Employees transferring from one department to

another department within the Company retain
their accrued sick leave. Employees transferring
from faculty or appointed positions are credited
with 1/2 day of sick leave for each complete
month of prior full-time service not to exceed
the maximum employee accrual. Employees
transferring from a benefits eligible status to a
non-benefits eligible status will lose accrued sick
leave.

At termination, employees are not paid for

unused accrued sick leave. Employees
terminated for lack of funds or abolishment of
position and rehired within a twelve-month
period are credited with unused sick leave
outstanding at the time of termination.
An employee who has been employed for one
continuous year in a benefits eligible status and
resigns in good standing will be eligible to have
credited unused sick leave outstanding at the
time of the termination if the employee returns
to a benefits eligible position within six (6)
months of termination date

56
 Holidays
Section

6
HOLIDAY – ELIGIBILITY
THE FOLLOWING ARE RECOGNIZED INSTITUTE
HOLIDAYS AND THE DAYS ON WHICH THE
INSTITUTE IS CLOSED TO OBSERVE THEM

Recognized
Date
Holiday

New Year's Day January 1

Martin Luther 3rd Monday in

King, Jr.'s Birthday January

Washington's 3rd Monday in

Birthday February

3rd Monday in
Patriot's Day
April

Last Monday in
Memorial Day
May

Independence Day July 4

1st Monday in
Labor Day
September

Columbus Day 2nd Monday in

57
 October

Veterans Day
Eligibility
November 11

4th Thursday in
Thanksgiving Day
November

Christmas Day December 25

A holiday which falls on a Sunday is observed

on the following Monday. A holiday, which falls
on a Saturday is observed on the previous
Friday, unless the Company designates another
day as the holiday.

From time to time, the Company may close

to observe some special occasion, often in
conjunction with a recognized Institute
holiday. A special holiday closing is paid
differently than a recognized Institute
holiday.

Full-time employees receive the designated

holidays. Part-time employees are eligible for
holiday leave on a pro-rata basis. Limited-time
and temporary personnel are not paid for holidays.
Employees on leave of absence without pay are
not paid for holidays that occur during the leave.

Part-time employees (regular and temporary)

are eligible for holiday pay provided they are:

a) Regularly scheduled to
work 50% or more of
the normal
departmental work
schedule, and

b) In pay status for the

work day preceding
and the work day
following the holiday,
if they were scheduled
to work on those days.

58
 HolidaysFull-Day
Floating
Compensation
for Staff
forWorking
Holiday
Holidays Non-
Worked
Standard Work Week

Eligibility for floating holidays

Employees scheduling a floating holiday must
obtain the supervisor's approval. Employees
transferring from one company department to
another can carry floating holidays to new
department. The maximum number of floating
holidays available in a fiscal year is two. Floating
holidays cannot be carried over from one fiscal
year to another. Floating holidays not taken
during the fiscal year are lost. Floating holidays
must be taken in full day increments. At
termination, there is no payment for unused
floating holidays.

All regular full-time and part-time employees who

are required to work during a designated holiday
receive either normal pay plus one and one-half
times their regular rate for each holiday hour
worked or normal pay plus compensatory time off
at the rate of one and one-half hours for each
holiday hour worked. All holiday work requires
prior supervisory approval.

Non-Exempt Staff
If a holiday is observed on a regularly
scheduled workday, eligible non-exempt
full-time and part-time employees will be
given time off with pay equivalent to the
average daily hours in their regular weekly
schedules (i.e., the total hours scheduled
for the week divided by 5). If the average
daily hours do not equal the number of
hours the employee would have been
scheduled to work on the holiday, an
adjustment in the work schedule may be

59
made so that there is no loss of holiday
leave or earnings.

Section

7
If a holiday is observed on a regularly
scheduled day off, the employee will be
given time off equal to the average daily
hours in their regular weekly schedule (i.e.,
the total hours scheduled for the week
divided by 5), at a time convenient to the
employee and the Company, but within
          days following the holiday.

Exempt Staff
If a holiday is observed on a regularly
scheduled workday, eligible exempt full-
time and part-time employees will be given
that day off with pay. If a holiday is
observed on a regularly scheduled day off,
the employee will be given another day off
at a time convenient to the employee and
the Company, but within           days
following the holiday.

FAMILY AND MEDICAL

LEAVE POLICY STATEMENT
This policy is based on the provisions of the
federal Family and Medical Leave Act. For
individuals, consult the divisional Human
Resources Office. Eligible employees can take
job-protected leave for up to a total of twelve
(12) work weeks in a ‘rolling’ 12 months period
(defined as 12-month period) measured
backward from the date the employee uses
Family Medical Leave because of: (a) the birth of
a child and to care for the newborn child during

60
 Eligibility

the first year following birth; ( b) the placement

of a child with the employee for adoption or
foster care; (c) The employee’s need to care for a
family member (child, spouse, same sex
domestic partner, or parent) with a serious
health condition. The employee’s own serious
health condition make the employee unable to
perform at least one essential function of his or
her job.

An employee is eligible for Family and Medical

Leave if employed for at least 12 months and has
worked at least 1,250 hours during the previous
12-month period. Exempt salaried employees
who have worked for 12 months are presumed
to meet the hourly test.

Period of Leave
Depending upon the reason for the leave and
conditions, an eligible employee may be entitled
to a maximum of 12 weeks of leave, including
paid and unpaid leave, during a 'rolling' 12
months period, i.e., looking backward from the
date the employee uses Family and Medical
Leave. If the employee has exhausted
appropriate leave with pay or is not eligible for
leave with pay, the leave is without pay.

Definitions
1. Spouse: husband or wife.
2. Same sex domestic partner: two non-
related adults of the same sex, both
of whom are at least 18 years of age,
are committed as a family in a long-
term relationship of indefinite
duration and are socially,
emotionally, and financially

61
 interdependent in an exclusive
mutual commitment in which they
agree to be responsible for each
other's common welfare and share
financial obligations. This policy is
intended to cover same sex partner
relationships, and not persons who
are cohabiting simply as roommates.

3. Son or daughter: a biological,

adopted or foster child, a stepchild, a
legal ward or a child of a person
standing in loco parentis, who is
either under age 18 years of age, or
age 18 or older and who is incapable
of self-care because of a mental or
physical disability.

4. Parent: the biological parent of an

employee, legal guardian or an
individual who stands or stood in
loco parentis to an employee when
the employee was a child. An
employee is limited to leave for two
parents. Parents-in-law are excluded.

5. Serious health condition: an illness,

injury, impairment, or physical or
mental condition that (1) involves a
period of incapacity or treatment in
connection with, or subsequent to
inpatient care; or (2) requires
"continuing treatment" by a health
care provider and includes one or
more of the following (A) absence
from work, school or other regular
activities for more than three
consecutive days; (B) any period of
incapacity due to pregnancy, or for
prenatal care; (C) any period of
incapacity or treatment for an
incapacity due to a chronic serious
health condition; (D) a period of
incapacity which is permanent or
long-term due to a condition for
which treatment may not be
effective; or (E) any period of

62
 An Eligible Employee is Entitled to
Leave for the Following
Circumstances:

absence to receive multiple

treatments by a health care provider
or by a provider of health care
services under orders of a health care
provider.

6. Health Care Provider: A doctor of

medicine or osteopathy authorized to
practice medicine or surgery and
others determined by the Secretary
of Labor. Contact divisional Human
Resources Office for additional
information.

7. Family and Medical Leave 12-month

period: A 'rolling' 12-month period
measured backward from the date an
employee uses leave under the
Family and Medical Leave Act.

Birth of a Child

The birth of a son or daughter of the

employee and the first year care for such
child. The birth mother who is eligible for
paid leave benefits must charge absence to
sick leave so long as the health care
provider certifies that the birth mother is
incapacitated and to the extent that sick
leave is accrued.
Upon the health care provider's release to
return to work or the exhaustion of accrued
sick leave, whichever occurs first, the birth
mother must charge the absence to accrued
vacation leave. When paid leave is no
longer available, the birth mother must
charge the absence to leave without pay.

63
 Adoption Placement

The father must charge leave to accrued

vacation leave. If additional leave is desired
and vacation leave is exhausted, the father
is eligible for a leave of absence without
pay.

Leave may be taken only within 12 months

of the birth. If the Company employs both
parents, their aggregate leave is limited to
12 weeks. Leave taken intermittently or a
reduced leave schedule is available only
upon the prior, written agreement of the
employee and the supervisor.

Notice: The employee must provide at least

30 days' advance notice before the date on
which the leave is to begin. If the employee
is unable to provide at least 30 days' notice,
the employee must provide such notice as
is practicable, i.e., within two days of
learning of the need for leave. Family and
Medical Leave forms and/or instructions
are available in the divisional Human
Resources Offices.

The placement of a son or daughter with

the employee for adoption or foster care,
and the first year care of the newly placed
child. An employee eligible for paid leave
must charge the absence to accrued
vacation leave. When accrued vacation
leave is exhausted, the absence is charged
to leave without pay. Leave may be taken
only within 12 months of the placement.

If the Company employs both parents, their

aggregate leave is limited to 12 weeks. If
the parents cannot agree on the leave taken
by each, the Company will base the
decision on the reason for the request,
length of service of the employees and
impact on the Company operations. Leave

64
 Care for the Employee’s Ill Child
Significant Other

taken intermittently or a reduced leave

schedule is available only upon the prior,
written agreement of the employee and the
supervisor.

Notice: The employee must provide at least

30 days' advance notice before the date on
which the leave is to begin. If the employee
is unable to provide 30 days' notice, the
employee must provide such notice as is
practicable, i.e., within two days of
learning of the need for leave.

*Family and Medical Leave forms and/or

instructions are available in the divisional
Human Resources Offices. The employee
must provide written evidence of the
placement. In the case of foster care,
documentation of state action is required.

In order to care for the employee's spouse,

same sex domestic partner, son, daughter or
parent who has a serious health condition.
If the employee is eligible for leave with
pay, an absence may be charged to accrued
sick leave not to exceed 12 sick leave days
per fiscal year. Following the exhaustion of
the 12 days of sick leave, the absence must
be charged to accrued vacation leave. If
additional leave is desired and vacation
leave is exhausted, a leave of absence
without pay is available.

If the leave is requested because of the

illness of a child or of the other spouse,
each spouse is entitled to 12 weeks of leave.
If both the Company employs spouses or
both same sex domestic partners and the
leave is to care for a sick parent, their
aggregate leave is limited to 12 weeks. If
the employees cannot agree on the leave

65
taken by each, the Company will base the
decision on the reason for the request,
length of service of the employee and
impact on the Company operations.

The Company may require documentation

to confirm the family relationship or same
sex domestic partnership.

Leave may be taken intermittently or on a

reduced schedule if medically necessary. If
an employee's request for intermittent
leave is foreseeable based on planned
medical treatment, the supervisor may
require the employee to transfer
temporarily to an alternative position, with
equivalent pay and benefits, that better
accommodates recurring periods of leave
than the employee's regular position.

Notice: If the leave is foreseeable based on

planned medical treatment, the employee is
required to make a reasonable effort to
schedule the treatment so as not to disrupt
unduly the operations of the Company. The
employee is required to provide at least 30
days' advance notice, or if the treatment is
to occur in less than 30 days, the employee
must provide such notice as is practicable.
*Family and Medical Leave forms and/or
instructions are available in the divisional
Human Resources Offices.

Certification: An employee must provide

written certification of a serious health
condition of a family member. The
certification should be provided no later
than the time the leave begins and must be
provided within 15 days of the request for
medical certification. Subsequent re-
certification may be required at 30-day
intervals, or if the reason for or duration of
the leave changes.

The medical information that can be

requested is included in the medical
certification form. No additional medical
information will be required. However, a

66
 Employee’s Serious Health Condition

health care provider representing the

Company may contact the health care
provider, with the patient's (or guardian's)
permission, for purposes of clarification and
verification of the authenticity of the
medical certification. The certification will
be filed separately from personnel records.

Medical opinions: The Company may, at its

own expense, require a second medical
opinion by a health care provider
designated by the Company. In the event
of conflicting opinions, the Company may
pay for a third and final provider to offer a
binding decision.

A serious health condition makes the

employee unable to perform at least one
essential function of his/her job. If the
employee is eligible for leave with pay, an
absence due to the employee's serious
health condition must be charged to
accrued sick leave. When accrued sick
leave is exhausted, the leave must be
charged to accrued vacation. If additional
leave is necessary and vacation leave is
exhausted, the absence will be leave
without pay.

Leave may be taken intermittently or on a

reduced schedule if medically necessary. If
an employee's request for intermittent
leave is foreseeable based on planned
medical treatment, the supervisor may
require the employee to transfer
temporarily to an alternative position, with
equivalent pay and benefits, that better
accommodates recurring periods of leave
than the employee's regular position.

Notice: If the leave is foreseeable based on

planned medical treatment, employees are

67
required to make a reasonable effort to
schedule the treatment so as not to disrupt
unduly the operation of the Company. The
employee is required to provide at least 30
days' advanced notice, or if the treatment is
to occur in less than 30 days, the employee
must provide such notice as is practicable.
Family and Medical Leave forms and/or
instructions are available in the divisional
Human Resources Offices.

Certification: An employee must provide

written certification of a serious health
condition. The certification should be
provided not later than the time the leave
begins and must be provided within 15
days after medical certification is requested.
Subsequent re-certification may be
required at 30-day intervals, or if the
reason for or duration of the leave changes.

The medical information that can be

requested is included in the medical
certification form. No additional medical
information will be required. However, a
health care provider representing the
Company may contact the employee's
health care provider, with the employee's
permission, for purposes of clarification and
verification of the authenticity of the
medical certification.

The certification will be filed separately

from personnel records.

Medical opinions: The Company may, at its

own expense, require a second medical
opinion by a health care provider
designated by the Company. In the event
of conflicting opinions, the Company may
pay for a third and final provider to offer a
binding decision.

68
 Concurrent
Benefits-
Health
Leave Benefits
General
Leaves

If an employee applies for long-term

disability benefits for an illness or injury
that also meets the criteria for a serious
health condition, the waiting period
absence will run concurrently with the
Family and Medical Leave.

If an employee is absent for job related

illness or injury for which he/she is eligible
to receive workers' compensation benefits
and the illness or injury also meets the
criteria for a serious health condition, the
absence for job related illness or injury will
run concurrently with Family and Medical
Leave.

However, employees may not be required

to use accrued sick and vacation leave
during periods of workers' compensation
absence.

Employees will not lose previously accrued

benefits. In the event the employee is
approved for an intermittent or reduced
schedule, benefits eligibility will be based
upon original status at the time the new
schedule is initiated, except for leave that
will be accrued on a pro rata basis.

Sick leave and vacation do not accrue for

employees during a leave of absence
without pay that exceeds           working
days during a calendar month. Employees
on a leave of absence without pay are not
paid for holidays that occur during the
leave. Employees on leave of absence
without pay exceeding 30 calendar days
will have their salary review date adjusted
accordingly, or their salary increase
prorated.

Health benefits continue through the

employee's leave. In the event the

69
 Return to Work
Notes

employee is in a leave without pay status,

health benefits will be continued but the
employee will be required to pay the
employee's portion of the premiums. If the
employee does not return to work
following the leave, he/she may be required
to reimburse the Company for premiums
paid during the leave.

In general, an employee who completes a period

of leave is to be returned either to the same
position or to a position equivalent in pay,
benefits and conditions of employment.

If the leave was required due to a health

condition of the employee, a written release
stating the employee is fit to return to duty from
the health care provider is required.

When practicable, the employee is requested to

contact the supervisor at least two weeks prior
to the expiration of the leave to indicate intent
to return to work. The employee must provide a
minimum of two days' notice of intent to return
to work.

The Company will administer Family and

Medical Leave in accordance with federal
regulations.

Request for leaves of absence for employees

not eligible for leave under this policy may
be made in accordance with the Personnel
Policy Manual.

Employees are encouraged to contact their

divisional Human Resources Offices
regarding qualification, eligibility,
entitlement to leave, maintenance of health

70
 Standard Work Week

Section

8
benefits, job restoration, notice and medical
certification, fitness to return to duty,
intermittent leave, and application of this
policy.

HOURS OF WORK AND

OVERTIME
THE STANDARD COMPANY WORK SCHEDULE
IS 8:30 A.M. TO 5:00 P.M., MONDAY
THROUGH FRIDAY. FOR PAYROLL PURPOSES,
THE STANDARD WORKWEEK CONSISTS OF
SEVEN DAYS, 12:01 A.M. MONDAY THROUGH
MIDNIGHT THE FOLLOWING SUNDAY.

Non-Exempt Employees
Non-exempt employees who are on a 37.5-
hour standard workweek, which is defined
as 100% full-time equivalent, receive an

71
 Flexibility— Fair Labor Standards Act
Overtime
Requirements

unpaid hour for lunch. Non-exempt

employees on a 40-hour standard
workweek receive an unpaid one-half hour
lunch break.

Exempt Employees
Exempt employees schedules are dependent
upon job requirements and are the
responsibility of the supervisors.

While the needs of most supervisors and

employees may be met within the standard
work hours and week, supervisors and
employees are free to arrange an alternative
work schedule that may better satisfy the
needs of both the supervisor and the
employee. Human Resources Personnel are
available to assist in developing alternative
work schedules.

The Fair Labor Standards Act does not require

that employees in positions exempt from the Act
be compensated for hours worked in excess of
the standard workweek. Employees in positions
that are non-exempt from the Fair Labor
Standards Act may not work more than the
standard number of hours in their workweek
without prior authorization from their
supervisors. Any deviation from the standard
number of hours is to be noted.

If non-exempt employees work more than the

standard number of hours in their work week,
but do not exceed 40 hours, they must receive
equivalent time off, within the same pay period,
or a request for supplemental pay must be
submitted for such hours at their regular hourly
rate, within the next pay period.

72
 Multiple Employment

If non-exempt employees work more than 40

hours in one work week, they must receive
compensatory time off within the same pay
period at the rate of one-and-one half hours for
each hour worked in excess of 40, or a request
for supplemental pay must be submitted for such
hours at the rate of one-and-one half hours
times their regular hourly rate, within the next
pay period.

Hours for which non-exempt employees are

regularly paid, but do not actually work due to
holiday or vacation days, are counted in
establishing the number of hours worked within
a work week for overtime pay computation
purposes. No other types of leave are counted.

Employees who wish to work in another

department or another position in the same
department must obtain prior authorization
from their department head and the divisional
Human Resources Office.

Overtime pay for non-exempt employees who

work multiple jobs may be calculated using one
of two methods:

(1) The weighted average of the

hourly rates paid for the
multiple positions. Weighted
average is determined by
dividing total pay received for
the workweek by the total
hours worked in the
workweek.

OR

(2) The “rate in effect” when the

overtime hours are worked.
The “rate in effect” may be

73
 Independent Contractor/Staff Member

used only when multiple

employment involves different
kinds of work and different
hourly rates of pay, and when
there is a written agreement
regarding overtime payment
between the employee and the
department before work is
performed. If a department
wishes to use the “rate in
effect,” it must consult and
obtain approval from its
divisional Human Resources
Office before doing so. (Note:
Employee must sign
acknowledgment if this
method is used.)

Complete time and attendance records are the

responsibility of the department of primary
appointment. Any supplementary or overtime
payroll forms must be approved by all affected
departments.

Employees who are currently employed by the

Company must be paid from the Company’s
payroll system with appropriate income and
FICA taxes withheld unless determined to be a
bona fide independent contractor.

An individual who is currently employed

by the Company and who works beyond
the hours regularly scheduled for
additional compensation must be paid from
the payroll system with appropriate income
and FICA taxes being withheld unless the
individual is a bona fide independent
contractor.

74
 Salary Reduction (Docking)

Payment is made to employees who

are paid semi-monthly by utilizing
the Special Reduction and Overtime
Payroll Request form.

For Non-Exempt Staff

Non-exempt employees are paid for all hours
worked. Their pay may be reduced for hours not
worked, i.e., tardiness, leaving early, and absences
without accrued leave.

For Exempt Staff

Exempt employees receive a full salary for
any week in which work is performed
without regard to the number of days or
hours worked in the week. Generally, the
weekly salary for exempt employees may
not be reduced due to a variation in the
quality and quantity of work performed.

The salary of exempt employees may be

reduced for the following reasons:
A. One or more full days for
personal reasons when
accrued vacation leave is
not available.
B. Absences
of one or more full days
occasioned by sickness or
disability when accrued
leave is not available.
C. Offset
for fees received when on
temporary military leave.
D. Unpaid
disciplinary suspensions
for one or more full days
imposed in good faith for
infractions of workplace
conduct rules, i.e., sexual

75
 harassment, workplace
violence, or for infractions
of safety rules of major
significance.
E. Initial or
terminal week of
employment.
F. Unpaid
leave under the Family
and Medical Leave Act.
When found or suspected, improper pay
deductions must be reported to the
divisional Human Resources Office or
Human Resources Director immediately.
The divisional Human Resources Office or
Human Resources Director will
immediately investigate such occurrences
and will ensure that appropriate
reimbursements to the affected employees
are made promptly. Such improper
deductions will not be permitted to occur
in the future.

76