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SCCY EMPLOYEE HANDBOOK PUB. 06/2022 REV 3.

00
TABLE OF CONTENTS

PURPOSE OF EMPLOYEE HANDBOOK............................................ 7

EMPLOYMENT AT-WILL........................................................................ 8

GENERAL INFORMATION................................................................... 8
Welcome ................................................................................................................... 8
About Our Company.................................................................................................. 9

BUSINESS ETHICS AND CONDUCT ................................................. 10

COMMITMENT TO DIVERSITY.......................................................... 11
Equal Employment Opportunity ........................................................................................ 11
Complaint Procedure .................................................................................................. 11
Protection Against Retaliation ............................................................................ 12
Sexual and Other Unlawful Harassment .................................................................. 12
Sexual Harassment Defined ....................................................................................... 12
Other Types of Harassment ............................................................................... 13
Complaint Procedure .................................................................................................. 13
Manager’s Responsibility ............................................................................................ 14
Protection Against Retaliation ............................................................................ 14
Good Faith ................................................................................................................... 15
Disability and Accommodation ................................................................................ 15
Religious Accommodation ................................................................................................ 16

GENERAL EMPLOYMENT PRACTICES............................................ 17


Employee Classifications .................................................................................................. 17
Exempt Employees ..................................................................................................... 17
Nonexempt Employees ............................................................................................... 17
Full-Time Employees ................................................................................................... 17
Part-Time Employees .................................................................................................. 17
Temporary Employees ................................................................................................ 17
Employee Eligibility and Work Authorization ............................................................ 18
Romantic and Family Relationships at Work ............................................................ 18
Background Checks ................................................................................................ 18
Personnel Files ....................................................................................................... 19
Personal Data Changes .......................................................................................... 19
Voluntary Open-Door Policy .................................................................................... 20

WORKPLACE CONDUCT ................................................................... 21


Standards of Conduct.............................................................................................. 21
Progressive Discipline ............................................................................................. 22
Reporting and Anti-Retaliation Policy ...................................................................... 24
Confidential Company Information .......................................................................... 27
Personal Appearance and Grooming................................................................................ 28
Religious, Medical and Disability Accommodations ............................................ 28
Attendance Policy ................................................................................................... 29
Personal Devices .................................................................................................... 32
Personal Calls ......................................................................................................... 33
Contact with the Media ............................................................................................ 34
Conflicts of Interest.................................................................................................. 34
Outside Employment ............................................................................................... 35

PAY PRACTICES ................................................................................. 36


Performance Evaluations ........................................................................................ 36
Job Postings............................................................................................................ 36
Payment of Wages .................................................................................................. 36
Paycheck Deductions ........................................................................................ 36
Reporting Errors and Obtaining More Information .............................................. 37
Work Schedules ................................................................................................................ 37
Meal and Rest Breaks ....................................................................................................... 38
Time Keeping .......................................................................................................... 38
Nonexempt Employees ............................................................................................... 38
Exempt Employees ..................................................................................................... 38
Overtime ................................................................................................................. 39
Lactation Accommodation ....................................................................................... 40
Business Travel and Reimbursement ...................................................................... 41

TIME OFF AND LEAVES OF ABSENCE ............................................ 42


Time Off and Leaves of Absence ...................................................................................... 42
Holiday Policy ......................................................................................................... 42
Paid Time Off .......................................................................................................... 43
Personal Leave ................................................................................................................. 45
Family and Medical Leave ....................................................................................... 46
Employee Eligibility ............................................................................................ 46
Reasons for Leave ............................................................................................. 46
Definitions .......................................................................................................... 47
Length of Leave ................................................................................................. 48
Intermittent or Reduced Schedule Leave ........................................................... 48
Notice and Certification ...................................................................................... 49
Recertification After Grant of Leave ................................................................... 50
Military Emergency Leave Requirements ........................................................... 50
Failure to Provide Certification and to Return from Leave.................................... 50
Compensation During Leave.............................................................................. 50
Benefits During Leave ........................................................................................ 51
Job Reinstatement ............................................................................................. 52
Confidentiality .................................................................................................... 52
Fraudulent Use of FMLA Prohibited ................................................................... 52
Nondiscrimination .............................................................................................. 52
Additional Information Regarding FMLA............................................................. 53
State Law ........................................................................................................... 53
Military Leave .......................................................................................................... 53
Eligibility for Leave ............................................................................................. 53
Notice of Leave .................................................................................................. 54
Compensation and Benefits During Leave .................................................................. 54
Reinstatement ................................................................................................... 54
Florida National Guard Leave ........................................................................................... 55
Civil Air Patrol Leave ........................................................................................................ 55
Domestic or Sexual Violence Victim Leave ...................................................................... 56
Jury and Witness Duty Leave ........................................................................................... 57
Time Off to Vote ...................................................................................................... 57
Bereavement Leave .......................................................................................................... 58

WORKPLACE SAFETY AND SECURITY ........................................... 59


Workplace Violence ................................................................................................ 59
Weapons in the Workplace ...................................................................................... 60
Firearms Safety ....................................................................................................... 61
Workplace Bullying.................................................................................................. 62
Reporting and Response ................................................................................... 62
Anti-Retaliation .................................................................................................. 63
Work-Related Injuries .............................................................................................. 65
Personal Protective Equipment (PPE) ..................................................................... 63
Hazard Communication ........................................................................................... 64
Forklift Safety........................................................................................................... 64
Lockout/Tagout ...................................................................................................... 65
Safety Committee ................................................................................................... 65
Smoke-Free Workplace .......................................................................................... 65
Emergency Evacuation ........................................................................................... 65
Food and Beverages ............................................................................................... 66
Employee Locker Policy .......................................................................................... 66
Drug-Free Workplace .............................................................................................. 67
Drug Use/Distribution/Possession/Impairment ........................................................ 67
Alcohol Use/Distribution/Possession/Impairment .................................................... 70
Prescription and Over-the-Counter Drugs ............................................................... 67
Counseling and Rehabilitation ................................................................................ 68
Company’s Right to Search .................................................................................... 68
Cameras and Video Surveillance ............................................................................ 69
Visitors .................................................................................................................... 69
Use of Company Equipment and Resources ........................................................... 70
Company Equipment ......................................................................................... 70
Company Resources ......................................................................................... 70
Electronic Resources .............................................................................................. 70
No Solicitation .................................................................................................... 71
Software Code of Ethics ..................................................................................... 71
Employee Responsibility .................................................................................... 71
Computer and Systems Security ........................................................................ 71
Social Media Acceptable Use............................................................................. 72
Email Content Screening ................................................................................... 74
Virus Protection ................................................................................................. 74
Employee Badges ............................................................................................................. 75
Cell Phone Use/Texting While Driving ............................................................................ 75
Inclement Weather/Office Closing ........................................................................... 76
No Solicitation/Distribution of Literature ................................................................... 77
Bulletin Boards .................................................................................................................. 77
EMPLOYEE BENEFITS ....................................................................... 78
Benefits Overview ............................................................................................................. 78
Insurance Benefits ............................................................................................................ 78
Same-Sex Marriages, Civil Unions & Domestic Partnerships ................................... 78
Employee Recognition ...................................................................................................... 79
Employee Purchase Program Policy ................................................................................ 79
One-Year Firearm Program ............................................................................................... 80
Workers’ Compensation .................................................................................................... 80
Reporting Work-Related Injury or Illness ........................................................... 80
Leaves of Absence/Accommodation .................................................................. 80
Return to Work ................................................................................................... 80
Fraud ...........................................................................................................................81
Educational Assistance Program Policy .................................................................. 82
Employee Referral Policy ........................................................................................ 85

LEAVING THE COMPANY .................................................................... 86


Separation from Employment .................................................................................. 86
Pay and Benefits Upon Termination ................................................................................. 86
Return of Company Property ................................................................................... 86
References/Verifications of Employment ................................................................. 87
Exit Interviews ......................................................................................................... 87
Rehire Eligibility and Service Recognition ............................................................. 87

ACKNOWLEDGEMENT AND RECEIPT ............................................. 89


PURPOSE OF EMPLOYEE HANDBOOK

This Employee Handbook contains information about the employment policies and practices of SCCY Industries. These policies
reflect the Company’s values, and we expect each employee to read this Employee Handbook carefully as it is a valuable reference
for understanding your job and SCCY Industries.

This Employee Handbook supersedes all previously issued Employee Handbooks and any inconsistent verbal or written policy
statements made or issued before this Employee Handbook. Except for the policy of at-will employment, SCCY Industries reserves
the right to revise, delete, and add to the provisions of this Employee Handbook. All such revisions, deletions, or additions must be
in writing. No oral statements or representations can change the provisions of this Employee Handbook.

None of our personnel documents and benefit plans, including this Employee Handbook, constitutes, or is intended to constitute,
an express or implied contract guaranteeing continued employment for any employee. No manager or supervisor has any authority
to enter a contract of employment express or implied that changes or alters the at-will employment relationship. Only Joseph
V. Roebuck has the authority to enter into an employment agreement that alters the at-will employment relationship, and any such
agreement must be in writing signed by Joseph V. Roebuck.

Not all the Company’s policies and procedures are set forth in this Employee Handbook. This is meant to be a summary of our
polices and is not all-inclusive. If an employee has any questions or concerns about this Employee Handbook or any other policy or
procedure, please ask your supervisor, your Human Resources representative, or another member of management.

Nothing in this Handbook or in any other document or policy is intended to violate any local, state, or federal law. Nothing in this
Handbook is intended to limit any concerted activities by employees relating to their wages, hours or working conditions, or any
other conduct protected by Section 7 of the National Labor Relations Act. Furthermore, nothing in this Handbook prohibits an
employee from reporting concerns to, filing a charge or complaint with, making lawful disclosures to, providing documents or other
information to, or participating in an investigation or hearing conducted by the Equal Employment Opportunity Commission (“EEOC”),
National Labor Relations Board (“NLRB”), Securities and Exchange Commission (“SEC”) or any other federal, state, or local agency
charged with the enforcement of any laws.

Founder/CEO
Joseph V. Roebuck

SCCY EMPLOYEE HANDBOOK PUB. 6/2022 REV 3.00 PAGE 7


EMPLOYMENT AT-WILL

Employment with SCCY Industries is at-will unless state law provides otherwise. This means that employment may be terminated
for any or no reason, with or without cause or notice at any time by the employee or by the Company. Nothing in this Handbook or
any oral statement shall limit the right to terminate at-will. This at-will employment policy is the sole and entire agreement between
the employee and SCCY Industries as to the duration of employment and the circumstances under which employment may be
terminated. No manager or supervisor has any authority to enter into a contract of employment express or implied that changes or
alters the at-will employment relationship. Only the Founder/CEO of the Company or his or her authorized representative has the
authority to enter into an employment agreement that alters the at-will employment relationship and any such agreement must be
in writing signed by the Founder/CEO of the Company or his or her authorized representative.

GENERAL INFORMATION

Welcome

Welcome to SCCY Industries. One of the keys to our success is hiring good employees. We have hired you because we believe you
have the skills and the potential to help our Company succeed. We expect employees to perform the tasks assigned to them to the
best of their abilities. We believe that hard work and commitment will not only benefit SCCY Industries but will help give all our
employees a sense of pride and accomplishment.

We are glad to have you as a member of our team. We hope that your employment proves mutually satisfying. Every employee
has an important role in our operation, and we value the abilities, experience, and background that they bring with them. It is our
employees who provide the services that our customers rely upon and enable us to grow and create new opportunities in the years
to come.

Our management team intends to provide employees with all the support and the resources they will need to perform their job
effectively. If, at any time, an employee needs assistance or guidance, the employee should not hesitate to ask any member of the
management team.

Once again, welcome to SCCY Industries. We are glad to have you with us.

SCCY EMPLOYEE HANDBOOK PUB. 6/2022 REV 3.00 PAGE 8


About Our Company

SCCY Industries has always emphasized that outstanding people are the key to our success. Our strength and future growth
depend on the contributions made by you and each person within our organization. We are proud to have you as part of our team.
To ensure continued success, we feel it is important that all employees understand our policies and procedures. This Employee
Handbook will familiarize employees with the various aspects of working with us. We encourage all employees to use the Handbook
as a valuable resource for understanding our Company.

SCCY EMPLOYEE HANDBOOK PUB. 6/2022 REV 3.00 PAGE 9


BUSINESS ETHICS AND CONDUCT

We expect SCCY Industry employees to be ethical in their conduct. It affects our reputation and success. SCCY Industries requires
employees to carefully follow all laws and regulations and have the highest standards of conduct and personal integrity.

SCCY Industries pledges to comply with all applicable laws and regulations. We expect all directors, officers, and employees to
conduct business in accordance with the letter, spirit, and intent of all relevant laws and to refrain from behaving in an illegal,
dishonest, or unethical manner.

If you use good judgment and follow high ethical principles, you will make the right decisions. However, if you are not sure if an
action is ethical or proper, you should discuss the matter with your supervisor or Human Resources.

It is the responsibility of every SCCY employee to comply with our policy of business ethics and conduct. Employees who ignore
or do not comply with this standard of business ethics and conduct may be subject to disciplinary action, up to and including
termination of employment.

SCCY EMPLOYEE HANDBOOK PUB. 6/2022 REV 3.00 PAGE 10


COMMITMENT TO DIVERSITY

Equal Employment Opportunity

SCCY Industries is an equal opportunity employer. In accordance with applicable law, we prohibit discrimination against any applicant
or employee based on any legally-recognized basis, including, but not limited to: race, color, religion, sex (including pregnancy,
lactation, childbirth or related medical conditions), sexual orientation, gender identity, age national origin or ancestry, physical or
mental disability, genetic information (including testing and characteristics), HIV or AIDS (actual or perceived), sickle cell trait or testing,
marital status, veteran status, uniformed servicemember status or any other status protected by federal, state or local law. Our
commitment to equal opportunity employment applies to all persons involved in our operations and prohibits unlawful discrimination
by any employee, including supervisors and co-workers.

Complaint Procedure

Any employee who believes that he or she has been harassed, discriminated against or subject to retaliation by a co-worker,
supervisor, agent, client, vendor, or customer of SCCY Industries, in violation of the foregoing policies, or who is aware of such
harassment, discrimination of or retaliation against others, should immediately provide a written or verbal report to his or her
supervisor, any other member of management or to Human Resources to report such incidents. After a report is received, a
thorough and objective investigation by management will be undertaken. The investigation will be completed, and a determination
made and communicated to the employee as soon as practical. The Company expects that all employees fully cooperate with any
investigation conducted by the Company into a complaint of proscribed harassment, discrimination, or retaliation, or regarding the
alleged violation of any other Company policies.

If we determine that this policy has been violated, remedial action will be taken, commensurate with the severity of the offense.
If a complaint of prohibited harassment, discrimination or retaliation is substantiated, appropriate disciplinary action, up to and
including termination of employment, will be taken.

The Equal Employment Opportunity Commission (“EEOC”) and equivalent state agencies will accept and investigate charges of
unlawful discrimination or harassment at no charge to the complaining party.

SCCY EMPLOYEE HANDBOOK PUB. 6/2022 REV 3.00 PAGE 11


Protection Against Retaliation

Retaliation is prohibited against any person by another employee or by SCCY Industries for using this complaint procedure, reporting
proscribed harassment, or for filing, testifying, assisting, or participating in any manner in any investigation, proceeding or hearing
conducted by a governmental enforcement agency. Prohibited retaliation includes, but is not limited to, termination, demotion,
suspension, failure to hire or consider for hire, adversely affecting working conditions or otherwise denying any employment benefit.

An employee should report any retaliation prohibited by this policy to his or her supervisor, any management team member or to
Human Resources. Employees can contact Human Resources to report such incidents. Any report of retaliatory conduct will be
investigated in a thorough and objective manner. If a report of retaliation is substantiated, appropriate disciplinary action, up to and
including termination of employment, will be taken.

Sexual and Other Unlawful Harassment

SCCY Industries is committed to providing a work environment that is free of prohibited harassment. As a result, the Company
maintains a strict policy prohibiting sexual harassment and harassment against applicants and employees based on any legally-
recognized status including, but not limited to: race, color, religion, sex (including pregnancy, lactation, childbirth or related medical
conditions), sexual orientation, gender identity, age national origin or ancestry, physical or mental disability, genetic information
(including testing and characteristics), HIV or AIDS (actual or perceived), sickle cell trait or testing, marital status, veteran status, uniformed
servicemember status or any other status protected by federal, state or local law.

The Company’s anti-harassment policy applies to all persons involved in its operations, regardless of their position, and prohibits
harassing conduct by any employee of SCCY Industries including supervisors, managers, and nonsupervisory employees. This policy
also protects employees from prohibited harassment by third parties, such as customers, vendors, clients, visitors, and temporary
or seasonal workers. If such harassment occurs in the workplace by someone not employed by SCCY Industries the procedures in
this policy should be followed.

Sexual harassment includes various forms of offensive behavior based on sex. The following is a non-exhaustive list of the types of
conduct prohibited by this policy:
• Unwanted sexual advances or propositions (including repeated and unwelcome requests for dates).
• Offers of employment benefits in exchange for sexual favors.
• Making or threatening reprisals after a negative response to sexual advances.
• Visual conduct: leering, making sexual gestures, displaying of sexually suggestive objects or
pictures, cartoons, posters, websites, emails, or text messages.
• Verbal conduct: making or using sexually derogatory comments, innuendos, epithets, slurs, sexually
explicit jokes, or comments about an individual’s body or dress, whistling or making suggestive or
insulting sounds.

SCCY EMPLOYEE HANDBOOK PUB. 6/2022 REV 3.00 PAGE 12


• Verbal and/or written abuse of a sexual nature, graphic verbal and/or written sexually degrading
commentary about an individual’s body or dress, sexually suggestive or obscene letters, notes,
invitations, emails, text messages, tweets, or other social media postings.
• Physical conduct: touching, assault or impeding or blocking normal movements.
• Retaliation for making reports or threatening to report sexual harassment.

Other Types of Harassment

Harassment on the basis of any legally protected status is prohibited, including, but not limited to: race, color, religion, sex
(including pregnancy, lactation, childbirth or related medical conditions), sexual orientation, gender identity, age national origin or
ancestry, physical or mental disability, genetic information (including testing and characteristics), HIV or AIDS (actual or perceived),
sickle cell trait or testing, marital status, veteran status, uniformed servicemember status or any other status protected by federal, state
or local law. Prohibited harassment may include behavior like the illustrations above pertaining to sexual harassment.

It also includes, but is not limited to:

• Verbal conduct including taunting, jokes, threats, epithets, derogatory comments, or slurs based
on an individual’s protected status.
• Visual and/or written conduct including derogatory posters, photographs, calendars, cartoons,
drawings, websites, emails, text messages or gestures based on an individual’s protected status.
• Physical conduct including assault, unwanted touching or blocking normal movement because of an
individual’s protected status.

Complaint Procedure

Any applicant or employee who believes that he or she has been subjected to prohibited harassment or retaliation by a co-worker,
supervisor, manager, client, visitor, vendor, customer or temporary or seasonal worker of SCCY Industries or who believes another
individual has been subject to such conduct, should report it immediately. Applicants and employees are encouraged to report
concerns, even if they relate to incidents in the past, involve individuals who are no longer affiliated with SCCY Industries, or concern
conduct occurring outside of work if it impacts the individual at work.

Complaints can be made verbally, or in writing, to the highest-ranking on-site supervisor or manager or to any Human Resources
Representative. Employees are not required to report any prohibited conduct to a supervisor or manager who may be hostile, who
has engaged in such conduct, who is a close associate of the person who has engaged in such conduct, or with whom the employee
is uncomfortable discussing such matters.

Employees are encouraged, but not required, to communicate to the offending person that his/her conduct is offensive and unwelcome.
Any supervisor or manager who receives a complaint of harassment or retaliation must immediately report the allegation to Human
Resources.

SCCY EMPLOYEE HANDBOOK PUB. 6/2022 REV 3.00 PAGE 13


After a report is received, a thorough and objective investigation will be undertaken. Confidentiality will be maintained to the extent
practical and permitted by law. Investigations will be conducted as confidentially as possible and related information will only be
shared with others on a need-to-know basis. The investigation will be completed, and a determination made and communicated to
the employee as soon as practical.

If a complaint of prohibited harassment or discrimination is substantiated, appropriate disciplinary action, up to and including
termination of employment, will be taken. If a complaint cannot be substantiated, the Company may take appropriate action to
reinforce its commitment to providing a work environment free from harassment.

Manager’s Responsibility

All supervisors and managers are responsible for:


• Implementing this policy, which includes, but is not limited to, taking steps to prevent
harassment and retaliation.

• Promptly reporting any complaints to the designated Human Resources Representative so


they may be investigated and resolved in timely manner.
• Taking and/or assisting in prompt and appropriate corrective action when necessary to
ensure compliance with this policy.
• Conducting themselves, at all times, in a manner consistent with this policy.

Failure to meet these responsibilities may lead to disciplinary action, up to and including termination.

Protection Against Retaliation

Retaliation is prohibited against any person by another employee or by SCCY Industries for using this complaint procedure, reporting
proscribed harassment, objecting to such conduct, or filing, testifying, assisting, or participating in any manner in any investigation,
proceeding or hearing conducted by a governmental enforcement agency. Prohibited retaliation includes, but is not limited to,
termination, demotion, suspension, failure to hire or consider for hire, adversely affecting working conditions or otherwise denying
any employment benefit.

Individuals who believe they have been subjected to retaliation or believe that another individual has been subjected to retaliation,
should report this concern to the highest-ranking on-site supervisor or manager or to any Human Resources Representative. Any
report of retaliatory conduct will be investigated in a thorough and objective manner. If a report of retaliation prohibited by this
policy is substantiated, appropriate disciplinary action, up to and including termination of employment, will be taken. If a complaint
cannot be substantiated, the Company may take appropriate action to reinforce its commitment to providing a work environment
free from retaliation.

SCCY EMPLOYEE HANDBOOK PUB. 6/2022 REV 3.00 PAGE 14


Good Faith

The initiation of a good faith complaint of harassment or retaliation will not be grounds for disciplinary action, even if the allegations
cannot be substantiated. Any individual who makes a complaint that is demonstrated to be intentionally false may be subject to
discipline, up to and including termination.

Disability and Accommodation

To comply with applicable laws ensuring equal employment opportunities for individuals with disabilities, SCCY Industries will
make reasonable accommodations for the known physical or mental limitations of an otherwise qualified individual with a disability
who is an applicant or an employee, unless undue hardship and/or a direct threat to the health and/or safety of the individual or
others would result. Any employee who requires an accommodation in order to perform the essential functions of his or her job,
enjoy an equal employment opportunity, and/or obtain equal job benefits should contact Human Resources to request such an
accommodation. Human Resources will communicate with the employee and engage in an interactive process to determine the
nature of the issue and what, if any, reasonable accommodation(s) may be appropriate.

Employees who believe they need an accommodation must specify, preferably in writing, what barriers or limitations prompted
the request. The Company will evaluate information obtained from the employee, and possibly his or her health care provider or
another appropriate health care provider, regarding any reported or apparent barriers or limitations, and will then work with the
employee to identify possible accommodations, if any, that will help to eliminate or otherwise address the barrier(s) or limitation(s).
If an identified accommodation is reasonable and will not impose an undue hardship on the Company and/or a direct threat to the
health and/or safety of the individual or others, SCCY Industries will generally make the accommodation, or it may propose another
reasonable accommodation which may also be effective. Employees are required to cooperate with this process by providing all
necessary documentation supporting the need for accommodation and being willing to consider alternative accommodations when
applicable.

SCCY Industries will also consider requests for reasonable accommodations for medical conditions related to pregnancy, childbirth,
and lactation when supported by medical documentation and/or as required by applicable federal, state, or local law.

SCCY EMPLOYEE HANDBOOK PUB. 6/2022 REV 3.00 PAGE 15


Religious Accommodation

The Company will provide reasonable accommodation for employees’ legitimate religious beliefs, observances, and practices when
a need for such accommodation is identified, and reasonable accommodation is possible. A reasonable accommodation is one that
eliminates or sufficiently reduces the conflict between an employee’s legitimate religious beliefs, observances, or practices and
the employee’s job requirements, without causing undue hardship to the Company.

The Company has developed an interactive accommodation process to assist employees, management, and Human Resources.
Through this process, the Company establishes a system of open communication between employees and the Company to

discuss need for a reasonable accommodation. The intent of this process is to ensure a consistent approach when addressing
religious accommodation requests. Any employee who believes that they need an accommodation should contact Human
Resources to initiate the interactive process. The Company requests that accommodation requests be made in writing and be
presented as soon as possible.

SCCY EMPLOYEE HANDBOOK PUB. 6/2022 REV 3.00 PAGE 16


GENERAL EMPLOYMENT PRACTICES

Employee Classifications

Employees of SCCY Industries are classified as either exempt or nonexempt under federal and state wage and hour laws and are
further classified for administrative purposes. The following designations are used throughout this Employee Handbook.

Exempt Employees

Exempt employees are employees whose job assignments meet specific tests established by the federal Fair Labor Standards Act
(FLSA) and state law and who are exempt from minimum wage and overtime pay requirements. Exempt employees are compensated
on a salary basis. Employees will be informed whether their status is exempt or nonexempt and should consult Human Resources
with any questions or concerns regarding this status.

Nonexempt Employees

Nonexempt employees are employees whose job positions do not meet FLSA or applicable state exemption tests, and who are NOT
exempt from minimum wage and overtime pay requirements. Nonexempt employees are eligible to receive overtime pay for hours
worked in excess of 40 hours in a given week, or as otherwise required by applicable state law. Employees will be informed whether
their status is exempt or nonexempt and should consult Human Resources with any questions or concerns regarding this status.

Full-Time Employees

Full-time employees are those who are normally scheduled to work and who do work a schedule of 40 hours per week. Full-time
employees are generally eligible for the employee benefits described in this Employee Handbook and are provided with benefits
required by applicable law.

Part-Time Employees

Part-time employees are those who are normally scheduled to work and who do work less than 40 hours per week. Part-time
employees may be assigned a work schedule in advance or may work on an as-needed basis. Part-time employees may be eligible
for some, but not all employee benefits described in this Employee Handbook and are provided with benefits required by applicable
law.

Temporary Employees

Temporary employees are those who are employed for short-term assignments. Temporary employees are generally hired to
temporarily supplement the workforce or assist in the completion of a specific project. These temporary employment assignments
are of limited duration. Temporary employees are not eligible for employee benefits, except as required by applicable law, and may
be classified as exempt or nonexempt based on job duties and compensation.

SCCY EMPLOYEE HANDBOOK PUB. 6/2022 REV 3.00 PAGE 17


Employee Eligibility and Work Authorization

SCCY Industries is committed to employing only individuals who are authorized to work in the United States and who comply with
applicable immigration and employment law. As a condition of employment, every individual must provide satisfactory evidence of
his or her identity and legal authority to work in the United States within 72 hours of commencing employment. If the employee
cannot verify his or her right to work in the United States within 72 hours of employment, the Company will be required to terminate
his/her employment immediately.

Relationships at Work

We will not take any adverse employment action against any employee for engaging in romantic relationships during nonworking
hours away from Company premises. However, we will consider such relationships when they affect an employee’s job performance,
occur during working time or on Company premises, or pose a danger of a conflict of interest.

A familial or intimate relationship among employees can create an actual or at least potential or perceived conflict of interest in the
employment setting, especially where one relative, spouse, partner, or member of such a relationship supervises another relative,
spouse, partner, or member. To avoid this problem, we may refuse to hire or place a relative or other intimately associated individual
in a position where the potential for favoritism or a conflict exists.

If two employees marry, become related, or enter an intimate relationship, they may not remain in a reporting relationship or in
positions where one individual may affect the compensation or other terms or conditions of employment of the other individual. In
other cases where a conflict or the danger of a conflict arises, even if there is no supervisory relationship involved, the parties may
be separated by reassignment or terminated from employment, at the discretion of SCCY Industries.

For the purposes of this policy, a relative is any person who is related by blood or marriage, or whose relationship with the employee
is like that of persons who are related by blood or marriage (e.g., domestic partnership or civil union status).

SCCY EMPLOYEE HANDBOOK PUB. 6/2022 REV 3.00 PAGE 18


Background Checks

The Company recognizes the importance of maintaining a safe, secure workplace with employees who are qualified, reliable, and
nonviolent, and who do not present a risk of serious harm to their coworkers or others. To promote these concerns and interests,
the Company reserves the right to investigate an individual’s prior employment history, personal references, and educational
background, as well as other relevant information. Consistent with legal or contractual requirements, the Company also reserves
the right to obtain and to review an applicant’s or an employee’s criminal conviction record, and related information, and to use such
information when making employment decisions, but only to the extent permissible under applicable law.

A pending criminal matter may be considered inappropriate circumstances for business-related reasons, consistent with applicable
law. All background checks will be conducted in strict conformity with the federal Fair Credit Reporting Act (FCRA), applicable state
fair credit reporting laws, and state and federal anti-discrimination and privacy laws. The Company is an equal opportunity employer
and will comply with applicable federal, state, and local laws relating to the use of background checks for employment purposes.

Personnel Files

Employees may inspect their own personnel file in the presence of a representative of SCCY Industries. Please contact Human
Resources to schedule a time. With that being said, employees may not be allowed to view investigation records or any letters of
reference that have been prepared or collected by management. Employees will be provided access to personnel records in
accordance with applicable state law.

Only authorized members of management and Human Resources have access to an employee’s personnel file. However, the
Company will cooperate with and provide access to an employee’s personnel file to law enforcement officials or local, state, or
federal agencies in accordance with applicable law, or in response to a subpoena, in accordance with applicable law.

Personal Data Changes

To better assist employees and/or their families in the event of personal emergencies, SCCY Industries needs to maintain up-to-
date contact information. Maintaining accurate information in our files also is important for recordkeeping, payroll and benefits
related purposes.

Changes in name, address, telephone number, marital status, number of dependents or changes in next of kin and/or beneficiaries
should be given to Human Resources promptly.

SCCY EMPLOYEE HANDBOOK PUB. 6/2022 REV 3.00 PAGE 19


Voluntary Open-Door Policy

We recognize that employees may have suggestions for improving our workplace, as well as complaints about the workplace. We
feel that the most satisfactory solution to a job-related problem or concern is usually reached through a prompt discussion with an
employee’s supervisor. Employees should feel free to contact their supervisors, another member of management, Human Resources
with any suggestions and/or complaints.

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WORKPLACE CONDUCT

Standards of Conduct

To assure safety and security and provide the best possible work environment, we expect employees to follow basic, common-sense
rules of conduct that will protect everyone’s interests and safety. It is not possible to list all the forms of behavior that are considered
unacceptable in the workplace, but the following are examples of infractions of rules of conduct that may result in disciplinary
action, including suspension, demotion, or termination of employment:

• Falsification of employment records, employment information or other records.


• Recording the work time of another employee, allowing any employee to record another employee’s
work time, or allowing falsification of any timecard, whether yours or that of another employee.
• Theft or the deliberate or careless damage of any Company property or the property of any employee
or client.
• Use of Company materials, supplies, tools, or products for personal reasons without
advanced permission from management.
• Abuse of the Company’s electronic resources, including sending personal emails during working
time or in a manner that interferes with the employee’s work performance.
• Possessing, distributing, selling, transferring, or using or being under the influence of alcohol
or illegal drugs in the workplace.
• Provoking a physical fight or engaging in physical fighting during working hours or on premises
owned or occupied by the Company.
• Carrying firearms, weapons or dangerous substances on premises owned or occupied by the
Company in violation of Company policy, unless state law provides otherwise.
• Using abusive, violent, threatening, or vulgar language at any time during working hours or while
on premises owned or occupied by the Company.
• Excessive absenteeism or tardiness.
• Absence of three consecutive scheduled workdays without prior notice to the Company.
• Failing to obtain permission to leave work during normal working hours.
• Failing to observe working schedules, including meal and rest breaks.
• Unauthorized cell phone use.

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• Smoking in undesignated areas.
• Poor work quantity or quality.
• Conviction of a felony or misdemeanor domestic violence charge.
• Failing to provide a certificate from a health care provider when requested or required to do so in
accordance with applicable law.
• Working overtime without authorization or refusing to work assigned hours.
• Violating any safety, health or security policy, rule, or procedure of the Company.
• Committing a fraudulent act or intentional breach of trust under any circumstances.
• Taking actions of discrimination or harassment.

Progressive Discipline

This policy describes the administration of fair and consistent discipline for unsatisfactory conduct at SCCY Industries.

SCCY believes it is important to make sure all employees are treated fairly, and disciplinary actions are prompt, consistent and
impartial. The purpose of disciplinary action is to correct unsatisfactory conduct or behavior, prevent it from happening again and
to prepare the employee for satisfactory performance in the future.

Nothing in this policy should be construed as altering the employment at-will relationship between SCCY and its’ employees. SCCY
Industries may use progressive discipline at its discretion and may choose to impose a more serious discipline as the
situation may warrant.

Disciplinary action may consist of any of the following steps:

1. Verbal Warning (documented)


This step gives the employee’s supervisor the opportunity to verbally discuss any performance
or behavioral problem with the employee in an informal manner. The supervisor must inform the
employee of how to correct the problem and the consequences if the problem is not corrected.
The Verbal Warning should be documented in writing.

2. 1st Written Warning


A 1st Written Warning may be issued when an employee does not correct his/her performance
or behavior described in the verbal warning or an employee’s conduct warrants bypassing the
verbal warning step. The employee’s supervisor will document the performance or behavioral
problem in writing by describing the issue in detail including the steps the employee should
take to correct the problem and the consequences if the problem is not corrected.

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3. 2nd Written Warning
A 2nd Written Warning may be issued when an employee does not correct his/her performance
or behavior described in previous warnings or an employee’s conduct warrants bypassing
previous steps. The employee’s supervisor will document the performance or behavioral problem
in writing by describing the issue in detail including the steps the employee should take to
correct the problem and the consequences if the problem is not corrected.

4. Suspension (unpaid)
A Suspension may be issued when an employee does not correct his/her performance or behavior
described in previous warnings or an employee’s conduct warrants bypassing previous steps.
The employee’s supervisor will document the performance or behavioral problem in writing by
describing the issue in detail including the steps the employee should take to correct the problem
and the consequences if the problem is not corrected.

5. Termination of employment

The company will exercise the progressive nature of this policy by following the appropriate steps, however,
the company reserves the right to combine and/or skip steps depending upon the situation. Contingent on the nature
of the offense, employees may be terminated without prior notice or disciplinary action.

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Reporting and Anti-Retaliation Policy

We Encourage a Speak Up Culture

Choosing to speak up about workplace concerns helps builds a healthy, ethical, and compliant company and is part of our culture.
To promote that culture, the Company encourages employees to speak up and raise questions and concerns promptly about any
situation that may violate our Code of Conduct, our core values, or our policies. At SCCY Industries, our people are our most valuable
asset. It benefits all of us if we raise our concerns so the Company may consider them carefully and address them properly.

Follow the Company’s Commitment to our Code and the Law.

The Company is deeply committed to promoting a culture of ethical conduct and compliance with:
• Our Code, Core Values, and policies.
• The laws, rules, and regulations that govern our business operations.
• Best practices in accounting, auditing, and financial reporting matters.

We expect all our employees, officers, directors, and agents to follow this commitment in all aspects of their work.

Raise Good Faith Questions and Concerns About Conduct that may Violate our Code.

Consistent with our commitment to ethics, compliance, and the law, we welcome your good faith questions and concerns about any
conduct you believe may violate our Code, especially conduct that may be illegal, fraudulent, unethical, or retaliatory. For purposes
of this policy, and because our Code captures standards of ethics and compliance at a broad level, references to our “Code” should
be read to encompass all our obligations to perform our jobs in a manner that is consistent with the Company’s policies and
procedures, as well as applicable laws.

We promote an environment that fosters honest, good faith communications about matters of conduct related to our business
activities, whether that conduct occurs within SCCY Industries, involves one of SCCY Industries’ contractors, suppliers, consultants,
or clients, or involves any other party with a business relationship to SCCY Industries.

Nothing in this Employee Handbook prohibits an employee from reporting concerns to, filing a charge or complaint with, making
lawful disclosures to, providing documents or other information to, or participating in an investigation or hearing conducted by
the Equal Employment Opportunity Commission (“EEOC”), National Labor Relations Board (“NLRB”), Securities and Exchange
Commission (“SEC”) or any other federal, state, or local agency charged with the enforcement of any laws. Other parts of this
Handbook address the confidentiality of the Company’s trade secrets and other proprietary information. You should note that in
raising any questions or concerns you may have about potentially illegal conduct, pursuant to the 2016 Defend Trade Secrets Act
(DTSA), no individual will be held criminally or civilly liable under Federal or State trade secret law for disclosure of a trade secret

SCCY EMPLOYEE HANDBOOK PUB. 6/2022 REV 3.00 PAGE 24


(as defined in the Economic Espionage Act) that is: (A) made in confidence to a Federal, State, or local government official, either
directly or indirectly, or to an attorney, and made solely for the purpose of reporting or investigating a suspected violation of law;
or, (B) made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal so that it is not
made public. An individual who pursues a lawsuit for retaliation by an employer for reporting a suspected violation of the law may
disclose the trade secret to the attorney of the individual and use the trade secret information in the court proceeding, if the
individual files any document containing the trade secret under seal, and does not disclose the trade secret, except as permitted by
court order.

The Company Does Not Tolerate Retaliation

Coming forward with questions or concerns may sometimes feel like a difficult decision, but we are committed to fostering an
environment that does not deter individuals from speaking up when they observe conduct that may violate our Code. For that reason,
the Company will not tolerate retaliation of any kind because an employee in good faith raises a question or concern about a violation
or suspected violation of our Code, our policies, or the laws and regulations under which we do business, or because the employee
participates in or cooperates with an investigation of such concerns.

The following are some examples of potential retaliation the Company prohibits:

• Adverse employment action affecting an employee’s salary or compensation.


• Demotion, suspension, or termination of employment.
• Taking away opportunities for advancement.
• Threatening an employee who has made a report.
• Creating or allowing the creation of a work atmosphere that is hostile toward an employee who has
reported a concern.

It is the Company’s policy to adhere to all applicable laws protecting our employees against unlawful retaliation or discrimination
as a result of their raising good faith questions or concerns. If you are ever aware of an instance or threat of retaliation, please
immediately report it.

Nothing in this policy prevents the Company from taking appropriate disciplinary or other legitimate employment action consistent
with its usual disciplinary practices and the law. In addition, this policy prohibits and does not protect employees who knowingly
and intentionally raise false concerns or reports.

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How to Raise Questions and Concerns

Employees can submit their good faith questions or concerns about conduct they believe may violate our Code, our policies or the
laws and regulations under which we do business to:
• Their supervisor or manager
• Human Resources
• Founder/CEO

When an employee raises a concern, the Company will maintain confidentiality to the fullest extent possible, consistent with
applicable legal requirements and the need to conduct an adequate investigation or review. When raising concerns, we ask that
employees provide as much detailed information as possible, including the background and history of the concern, names, dates,
and places where possible, and the reasons why the situation is cause for concern. This is especially important for concerns raised
anonymously, so that the Company may conduct an appropriate review and if necessary, begin an investigation.

Please note as well that SCCY Industries does not prohibit anyone from electing to report concerns to, make lawful disclosures to
provide documents or other information to, or communicate with the Equal Employment Opportunity Commission (“EEOC”), National
Labor Relations Board (“NLRB”), Securities and Exchange Commission (“SEC”) or any other federal, state, or local agency about
conduct believed to violate laws or regulations. The Company also does not prohibit employees from participating in an investigation
or proceeding conducted by one of these agencies.

What SCCY Industries Will Do

SCCY Industries is committed to reviewing all reported concerns, conducting proper, fair, and thorough investigations tailored to the
circumstances, and taking appropriate remedial and concluding steps as warranted. All action taken by the Company in response
to a concern will necessarily depend on the nature and severity of the concern. This may include initial inquiries and fact-gathering
to decide whether an investigation is appropriate and, if so, the form and scope of the investigation. Note that an investigation
into concerns raised is not an indication that they have either been confirmed or rejected. The Company complies with the law in
conducting investigations and expects that employees will cooperate with an investigation, except when voluntary compliance with
an investigation is being requested. The Company also expects that employees will provide truthful information when participating
in an investigation.

Remember, all good faith concerns and reports raised under this policy will be taken seriously.

Adherence to This Policy

Employees who believe that they have been subjected to any conduct that violates this policy may register a complaint using the
procedures outlined above. Any employee who unlawfully discriminates or retaliates against another employee as a result of his or
her protected actions as described in this policy may be subject to corrective action, up to and including termination.

SCCY EMPLOYEE HANDBOOK PUB. 6/2022 REV 3.00 PAGE 26


Confidential Company Information

The Company’s confidential and proprietary information is vital to its current operations and future success. Each employee should
use all reasonable care to protect or otherwise prevent the unauthorized disclosure of such information.

In no event should employees disclose or reveal confidential information within or outside the Company without proper authorization
or purpose.

“Confidential Information” refers to a piece of information, or a compilation of information, in any form (on paper, in an electronic
file, or otherwise), related to the Company’s business that the Company has not made public or authorized to be made public, and
that is not generally known to the public through proper means.

By way of example, confidential or proprietary information includes, but is not limited to, nonpublic information regarding the
Company’s business methods and plans, databases, systems, tooling, manufacturing methodology, technology, intellectual property,
know-how, marketing plans, business development, products, services, research, development, inventions, financial statements,
financial projections, financing methods, pricing strategies, customer sources, employee health/medical records, system designs,
customer lists and methods of competing. Additionally, employees who by virtue of their performance of their job responsibilities
have the following information, should not disclose such information for any reason, except as required to complete job duties,
without the permission of the employee at issue: social security numbers, driver’s license or resident identification numbers, financial
account, credit or debit card numbers, security and access codes or passwords that would permit access to medical, financial
or other legally protected information. Confidential Information does not include information lawfully acquired by non-management
employees about wages, hours or other terms and conditions of employment, if used by them for purposes protected by §7 of the
National Labor Relations Act such as joining or forming a union, engaging in collective bargaining, or engaging in other
concerted activity for their mutual aid or protection. Nothing in this Employee Handbook prohibits an employee from
communicating with any governmental authority or making a report in good faith and with a reasonable belief of any violations of law
or regulation to a governmental authority, or disclosing Confidential Information which the employee acquired through lawful means
in the course of his or her employment to a governmental authority in connection with any communication or report, or from filing,
testifying or participating in a legal proceeding relating to any violations, including making other disclosures protected or
required by any whistleblower law or regulation to the Securities and Exchange Commission, the Department of Labor, or
any other appropriate government authority.

Further, employees are hereby notified that under the 2016 Defend Trade Secrets Act (DTSA): (1) no individual will be held criminally
or civilly liable under Federal or State trade secret law for the disclosure of a trade secret (as defined in the Economic Espionage
Act) that: (A) is made in confidence to a Federal, State, or local government official, either directly or indirectly, or to an attorney;
and made solely for the purpose of reporting or investigating a suspected violation of law; or, (B) is made in a complaint or other
document filed in a lawsuit or other proceeding, if such filing is made under seal so that it is not made public; and, (2) an individual
who pursues a lawsuit for retaliation by an employer for reporting a suspected violation of the law may disclose the trade secret to

SCCY EMPLOYEE HANDBOOK PUB. 6/2022 REV 3.00 PAGE 27


the attorney of the individual and use the trade secret information in the proceeding, if the individual files any document contain the
trade secret under seal, and does not disclose the trade secret, except as permitted by order in that proceeding.

Personal Appearance and Grooming

The image SCCY Industries projects to the public is reflected in the appearance of our employees. Simply stated, employees should
look neat, clean, and well-groomed and should be dressed appropriately for the business environment. Employees are expected to
use good judgment in their appearance and grooming, keeping in mind the nature of the work, their own safety,the safety of co-
workers, and their need to interact with the public. The Company will have sole discretion in determining the appropriateness of
specific garments.

Below are a few guidelines for professional appearance:

• Clothing should not constitute a safety hazard.


• All employees should practice common sense rules of neatness, cleanliness, and comfort.
• When jeans are appropriate for the position, the jeans must be in good condition.
• Shorts are permitted in production areas; however, they must be long enough to reach the top of the
knees while standing.
• No sleeveless shirts or tank tops are allowed in production areas.
• Footwear worn in production areas must be non-skid and must have a closed toe and heel.
• Garments that are unnecessarily revealing or tight fitting are generally not permitted.
• Personal appearance should include good personal hygiene, clean hair, and facial hair. If an employee
shaves, then the employee’s facial hair should be clean-shaven or trimmed. If an employee does not
shave, facial hair should be clean and well-groomed.
• Jewelry may be restricted for safety reasons, based on the position.

We encourage employees to seek the advice of their supervisor or Human Resources if they have questions regarding appropriate
dress or appearance at work. Employees who report to work improperly dressed or groomed may be instructed by their supervisor
to return home to change. The time that nonexempt employees are absent for this purpose will be unpaid unless state law requires
otherwise.

Religious, Medical and Disability Accommodations

The Company will reasonably accommodate exceptions to this policy if required due to an employee’s religious beliefs, medical
condition, or disability. Employees who need such an accommodation should contact their supervisor or Human Resources.

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Attendance Policy

Objective

The purpose of this policy is to set forth the Company’s policy and procedures for handling employee absences and tardiness
to promote the efficient operation of the company and minimize unscheduled absences.

Policy

Punctual and regular attendance is an essential responsibility of each employee at the Company. Employees are expected to
report to work as scheduled, on time and prepared to start working. Employees also are expected to remain at work for their
entire work schedule. Late arrival, early departure or other absences from scheduled hours are disruptive and must be avoided.

This policy does not apply to absences covered by the Family and Medical Leave Act (FMLA) or leave provided as a reasonable
accommodation under the Americans with Disabilities Act (ADA) or workers compensation. These exceptions are described in
separate policies.

Absence

“Absence” is defined as the failure of an employee to report for work when he or she is scheduled to work. The two types of
absences are defined below:

• Excused absence occurs when all the following conditions are met:

o The employee provides to his or her supervisor sufficient notice at least 24 hours in advance of the absence.

o The absence request is approved in advance by the employee’s supervisor.

o The employee has sufficient accrued paid time off (PTO) to cover the absence.

• Unexcused absence occurs when any of the following conditions are not met:

o The employee does not provide to his or her supervisor sufficient notice of at least 24 hours in advance of the
absence.

o The absence request is not approved in advance by the employee’s supervisor.

o The employee does not have sufficient accrued paid time off (PTO) to cover the absence.

o The employee does not follow the prescribed call-in procedure.

An unexcused absence counts as one (1) occurrence point (i.e., single day, or a group of multiple days) for the purposes of
discipline under this policy.

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Employees with three or more consecutive days of absences because of illness or injury must give the Company proof of
physician’s care and a fitness for duty release prior to returning to work.

Employees must take earned PTO for every absence unless otherwise allowed by company policy (e.g., leave of absence,
bereavement, jury duty) and or management discretion.

Call-in Procedure

• If it is necessary for an employee to be absent or late for work because of an illness or an emergency, the employee
must notify his or her supervisor no later than the employee’s scheduled starting time on that same day and each
subsequent day of absence.

• Additionally, the employee must call the Company at 386-322-6336 and leave a message for your supervisor.

• If the employee is unable to call, he or she must have someone call on their behalf as soon as possible.

Tardiness and Early Departures

Employees are expected to report to work and return from scheduled breaks on time. Notification of tardiness does not excuse
the tardiness but simply notifies the supervisor. Employees who must leave work before the end of their scheduled shift must
notify a supervisor immediately to obtain approval.

Unapproved tardiness and early departures are each one-half (1/2) an occurrence point for the purpose of discipline under this
policy.

Disciplinary Action

Excessive absenteeism or tardiness will result in progressive disciplinary action up to and including termination of employment
based on the following point system:

• 5 occurrence pts.= Verbal Warning

• 6 occurrence pts. = Written Attendance Warning

• 7 occurrence pts. = Final Written Attendance Warning

• 8 occurrence pts. = Termination

Absenteeism is measured based on a rolling 12 months of active employment. The twelve (12) month period is a “rolling window,”
measured from current date back twelve (12) months, not a calendar year. Points will be automatically removed from employee’s
balance after they have been applied for 365 days.

Once an employee reaches the documented verbal warning stage, progressive steps will be issued for attendance occurrences
that continue within the rolling 12-month period. Employee occurrences that rise to the 7-point level twice within a two-year

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period will escalate in the disciplinary action to the termination level.

Job Abandonment

Any employee who fails to report to work for a period of three days or more without notifying his or her supervisor will be
considered to have abandoned the job and voluntarily terminated the employment relationship.

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Personal Owned Devices Policy

Purpose

This policy establishes SCCY Industries, LLC guidelines for employee use of personally owned electronic devices during work
hours.

Scope

Personal electronic devices include, but are not limited to, personally owned cellphones, smartphones, tablets, laptops, and
computers.

Restrictions

Employees whose personal devices have camera, video or recording capability are restricted from using those functions
anywhere in the building or on company property at any time unless authorized in advance by management.

Excessive personal calls, e-mails, or text messaging during the workday, regardless of the device used, can interfere with
employee productivity and be distracting to others. Employees must handle personal matters on nonwork time and ensure that
friends and family members are aware of the policy. Exceptions may be made for emergency situations and as approved in
advance by management.

Nonexempt employees may not use their personal devices for work purposes outside of their normal work schedule without
authorization in advance from management. This includes reviewing, sending, and responding to e-mails or text messages,
responding to phone calls, or making phone calls.

Employees may not use their personal devices for work purposes during periods of unpaid leave without authorization from
management. SCCY Industries, LLC reserves the right to deactivate the company’s application and access on the employee’s
personal device during periods of unpaid leave.

Privacy

No employee using his or her personal device should expect any privacy except that which is governed by law. The SCCY
employee Wi-Fi network is provided for employee use during breaks and lunch for personal use (social media, personal email,
shopping, etc.) This access is available to all employees and is not monitored by SCCY, however several web categories are
blocked as inappropriate or for bandwidth conservation purposes.

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Safety

Employees whose job responsibilities include operating industrial equipment are prohibited from using their personal devices
while operating said equipment.

Employees whose job responsibilities include regular or occasional driving are prohibited from using their personal devices while
driving. Regardless of the circumstances, including slow or stopped traffic, employees are required to pull off to the side of the
road and safely stop the vehicle before placing or accepting a call or texting. Special care should be taken in situations involving
traffic, inclement weather, or unfamiliar areas.

Employees who are charged with traffic violations resulting from the use of their personal devices while driving will be solely
responsible for all liabilities that result from such actions.

Employees who work in hazardous areas are prohibited from using personal devices while at work in those areas, as such use
can potentially be a major safety hazard.

Employees should take precautions to safeguard their personal devices from loss, damage, or theft. SCCY Industries, LLC is
not liable for lost, stolen, hacked or damaged equipment.

Violations of Policy

Employees who have not received authorization in writing from SCCY Industries, LLC management and who have not provided
written consent will not be permitted to use personal devices for work purposes. Failure to follow SCCY Industries, LLC policies
and procedures may result in disciplinary action, up to and including termination of employment.

Personal Calls

While employees are at work, they are expected to perform their job duties and responsibilities. Personal calls should be made
primarily outside of working time.

The Company may monitor the frequency and duration of an employee’s usage of its telephones. In the event it is necessary to make
a personal, international, long-distance call, employees may be asked to reimburse SCCY Industries for the cost, when applicable.
Abuse of the Company’s telephones and/or long-distance service may result in discipline, up to and including termination of
employment.

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Contact with the Media

To ensure that the Company communicates with the media in a consistent, timely and professional manner about matters related
to the Company, you should notify Human Resources that you have been contacted by the media whenever you are asked to speak
on behalf of the Company so that the Company knows that a media inquiry has been made. Do not respond to media inquiries on the
Company’s behalf without authorization.

Conflicts of Interest

All employees must conduct themselves in such a way as to avoid actual or potential conflicts of interest. The following are examples
of prohibited conflicts of interest in any aspect of their jobs:

• Acting as a director, officer, consultant, agent or employee of a supplier, customer, competitor,


or any entity that engages in business with the Company.
• Owning a material interest in or being a creditor of or having other financial interest in a supplier,
customer, competitor, or any entity that engages in business with the Company.
• Receiving from or giving to any supplier, customer or competitor gifts, gratuities, special allowances,
discounts, or other advantages not generally available to employees of the Company.
• Giving preferential treatment to an entity that engages in business with the Company in which a
family member is associated.
• Having any significant direct or indirect personal interest in a business transaction involving the
Company.
• Conducting outside activities that materially detract from or interfere with the full and timely
performance of an employee’s job duties for the Company.
• Influencing commercial transactions involving purchases, contracts or leases in a way that would
have a negative impact on the Company or its business.

If an employee finds that he or she has, or is considering the assumption of, a financial interest or outside employment relationship
that might involve a conflict of interest, or if the employee is in doubt concerning the proper application of this policy, he or
she should promptly discuss the matter with his or her supervisor or manager and refrain from exercising responsibility on the
Company’s behalf in any manner that might reasonably be considered to be affected by any adverse interest.
Failure to disclose the fact of a conflict or potential conflict may constitute grounds for disciplinary action.

This policy in no way prohibits employee affiliations or activities that are protected under applicable state and federal laws, including
but not limited to any activity that is protected under Section 7 of the National Labor Relations Act, which includes the right of
employees to organize collectively and to speak with others about their terms and conditions of employment.

SCCY EMPLOYEE HANDBOOK PUB. 6/2022 REV 3.00 PAGE 34


Outside Employment

The Company respects each employee’s right to engage in activities outside of employment such as those that are of a personal or
private nature, to the extent that such activities do not create a conflict of interest as described in the Conflicts of Interest policy set
forth in this Handbook or adversely affect the employee’s ability to perform his or her job. Under certain circumstances, however, if
an employee’s personal conduct adversely affects his or her performance on the job or makes it impossible for him or her to carry
out any or all his or her job duties while at work, appropriate disciplinary action up to and including termination of employment
may be appropriate.

An example of an activity that might adversely affect an employee’s ability to perform his or her job duties is outside employment.
While the Company does not prohibit employees from holding other jobs, the following types of outside employment are prohibited:

• Employment that conflicts with the employee’s work schedule, duties and responsibilities or creates
an actual conflict of interest.
• Employment that impairs or has a detrimental effect on the employee’s work performance with the
Company.
• Employment that requires employees to conduct work or related activities during working times or
using any of the Company’s tools, materials, or equipment.
• Employment that directly or indirectly competes with the business or the interests of the Company.

For the purposes of this policy, self-employment is considered outside employment.

The Company will not assume any responsibility for employees’ outside employment. Specifically, SCCY Industries will not provide
workers’ compensation coverage or any other benefit for injuries occurring from, or arising out of, such outside employment.

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PAY PRACTICES

Performance Evaluations

Performance evaluations are scheduled in specific time intervals; however, supervisors and employees are strongly encouraged to
discuss job performance and goals on an informal, day-to-day basis.

A positive performance review does not guarantee a salary increase or a promotion, or continued employment. These decisions
are made at the discretion of the Company and depend on several factors in addition to an employee’s individual
performance.

We reserve the right to make any personnel changes (including termination) before or after performance evaluations.

Job Postings

SCCY Industries offers opportunities for growth and development to employees through our job posting program. Employees
interested in applying for a promotion in which they are qualified should follow the instructions on the posting. SCCY considers
factors such as attendance, performance, skills, education, and length of service when considering which employee to promote
through our job posting program.

Payment of Wages

Employees will be paid weekly by direct deposit. Each pay period covers a period of seven days.

If the regular payday falls on a company-recognized holiday, then employees will be paid on the workday before or after the regular
payday. Employees who utilize electronic direct deposit will have electronic access to their paystub.

Paycheck Deductions

The Company is required by state and federal laws to make certain deductions from your paycheck each pay period. Such deductions
typically include federal and state taxes and Social Security. Depending on the state in which you are employed and the benefits you
choose, additional deductions may occur.

The amount of all deductions will be listed on the employee’s pay stub.

SCCY EMPLOYEE HANDBOOK PUB. 6/2022 REV 3.00 PAGE 36


Reporting Errors and Obtaining More Information

If any employee, exempt or nonexempt, has questions about deductions from his or her pay, believes he or she has been subjected
to improper deductions, or believes that the amount paid does not accurately reflect the employee’s total hours worked or salary,
please contact Human Resources, a supervisor, or any other member of management as soon as practicable.

Every report will be fully investigated, and the Company will provide the employee with any compensation to which the employee is
entitled.

The Company complies with all applicable laws, including the Fair Labor Standards Act, and will not allow any form of retaliation
against individuals who make good faith reports of alleged violations of this policy, or who cooperate in an investigation by the
Company, even if good-faith reports do not reveal any errors or wrongdoing.

Work Schedules

Every employee will be assigned a work schedule and is expected to be at their desk or designated work area at the start of their
scheduled shift, ready to perform their work.

Supervisors will schedule meal and rest periods as appropriate. The Company complies with federal and state laws in this regard, as
further discussed below.

Staffing needs and operational demands are determined by the Company and may necessitate variations in starting and ending
times, as well as variations in total hours that may be scheduled each day and week.

Meal and Rest Breaks

The Company will comply with all federal and state laws regarding meal and rest breaks.

Any rest breaks of short duration (less than 20 minutes) will be counted as “hours worked” and paid accordingly. Meal
breaks lasting 21 minutes or more are not considered “hours worked” for purposes of federal law and will not be paid for
nonexempt employees. Meal breaks are to be 30 minutes and can be up to 1 hour (department specific).

Employees must be completely relieved from work duties during any unpaid meal break. Nonexempt employees must
punch in/out for their meal breaks each day on their time records.

Additionally, the company has provided a breakroom and picnic area for the purpose of eating meals away from
employee desks and the manufacturing floor. Employees are required to take meal breaks away from their work area.
No food should be eaten in the office or manufacturing area.

SCCY EMPLOYEE HANDBOOK PUB. 6/2022 REV 3.00 PAGE 37


Time Keeping

Nonexempt Employees

Employees who are classified as nonexempt must accurately record the time they work each day, including arrival, departure, and
meal break times.

When employees receive their paychecks, they should verify immediately that their working time was recorded accurately and that
they were paid correctly for all hours worked.

Nonexempt employees must accurately report all time worked, and not work any time that is not authorized by their supervisors.
This means nonexempt employees must not start work early, finish work late, work during a meal break, or perform any other extra
or overtime work unless directed to do so. Employees who have questions about when or how many hours they are expected to
work should contact their supervisor.

It is a violation of the Company’s policy for anyone to instruct or encourage another employee to work “off the clock,” to incorrectly
report hours worked, or to alter another employee’s time records. If any employee is directed or encouraged to incorrectly report
hours worked, or to alter another employee’s time records, he or she should report the incident immediately to a supervisor or
Human Resources.

Exempt Employees

Employees who are classified as exempt must record absences from work.

Exempt employees are paid on a salary basis. This means the employee regularly receives a predetermined amount of compensation
each pay period, which cannot be reduced because of variations in the quality or quantity of the employee’s work. In general, an
exempt employee will receive his or her salary for any week in which the employee performs any work, regardless of the number of
days or hours worked. However, an exempt employee will not be paid for days not worked in the following circumstances:

• When an exempt employee takes one or more full days off for personal reasons other than sickness
or disability, the employee will not be paid for such day(s) of absence, but the employee may use
available paid time off to make up for the reduction in salary.
• When an exempt employee takes one or more full days off from work due to sickness or disability,
the employee will not be paid for such day(s) of absence, but the employee may use available paid
time off to make up for the reduction in salary.

SCCY EMPLOYEE HANDBOOK PUB. 6/2022 REV 3.00 PAGE 38


• When an exempt employee works only part of the week during his or her first and last week with the
Company, the employee will be paid only for the days worked.
• When an exempt employee takes unpaid leave under the Family and Medical Leave Act or
corresponding laws, the Company will not pay for such days/hours of absence.

An exempt employee’s salary will not be reduced when the employee works part of a week and misses part of a week due to service
as a juror, witness, in the military or for lack of work.

It is company policy to comply with the salary basis requirements of the Fair Labor Standards Act (FLSA) and applicable state law.
The Company prohibits any deductions from pay that violate the FLSA or applicable state law.

If an exempt employee believes that an improper deduction has been made to his or her salary, the employee should immediately
report this information to Human Resources. Reports of improper deductions will be promptly investigated. If it is determined that
an improper deduction has occurred, the employee will be promptly reimbursed for any improper deduction made.

Overtime

When operating requirements or other needs cannot be met during regular working hours, employees may be scheduled to work
overtime. Nonexempt employees will be paid one and one-half (1.5) times their regular rate of pay for all hours worked in excess of
40 hours in one workweek and as otherwise required by applicable state and federal law. Paid time off will not count toward hours
worked for the purpose of determining overtime pay.

All overtime work must be authorized in advance by the employee’s supervisor. Working overtime without prior authorization may
result in disciplinary action.

Exempt employees are expected to work as much of each workday as is necessary to complete their job responsibilities. No overtime
or additional compensation is provided to exempt employees.

For overtime pay calculation purposes, the work week begins at 12:00 am Sunday and ends at 11:59 pm Saturday.

SCCY EMPLOYEE HANDBOOK PUB. 6/2022 REV 3.00 PAGE 39


Lactation Accommodation

The Company will provide a reasonable amount of break time to accommodate an employee desiring to express breast milk for the
employee’s infant child. Employees needing breaks for lactation purposes may use ordinary paid rest breaks or may take another
reasonable break time when needed. If possible, the lactation break time should run concurrently with scheduled meal and rest
breaks already provided to the employee. If the lactation break time cannot run concurrently with meal and rest breaks already
provided or additional time is needed for the employee, the lactation break time will be unpaid for nonexempt employees.

Employees will be relieved of all work-related duties during any unpaid break. Where unpaid breaks or additional time are required,
employees should work with their supervisor regarding scheduling and reporting the extra break time. Where state law imposes
more specific requirements regarding the break time or lactation accommodation, the Company will comply with those requirements.

Because exempt employees receive their full salary during weeks in which they work, all exempt employees who need lactation
accommodation breaks do not need to report any extra break time as “unpaid.”

The Company will provide employees with the use of a room or a private area, other than a bathroom or toilet stall, that is shielded
from view and free from intrusion from coworkers and the public. The Company will make a reasonable effort to identify a location
closeto the work area for the employee to express milk. This location may be the employee’s private office, if applicable.

The Company will otherwise treat lactation as a pregnancy-related medical condition and address lactation-related needs in the
same manner that it addresses other non-incapacitating medical conditions, including requested time off for medical appointments,
requested changes in schedules and other requested accommodations.

Employees should discuss with Human Resources the location for storage of expressed milk. In addition, employees should contact
Human Resources during their pregnancy or before their return to work to identify the need for a lactation area.

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Business Travel and Reimbursement

The Company will reimburse employees for reasonable business travel expenses incurred while on assignments away from the
normal work location. All business travel must be approved in advance and is subject to budgetary approval. Once approved,
employees should make travel arrangements and seek reimbursement in accordance with the guidelines in this policy.

When approved, the actual cost of travel, meals, lodging and other expenses directly related to accomplishing business travel
objectives will be reimbursed by the Company. Employees are expected to limit expenses to reasonable amounts. Reimbursement
of nonstandard expenses (including the purchase of alcoholic beverages) incurred on business trips is within the sole discretion of
the Company.

Employees should ask their supervisor or Human Resources for guidance and assistance on procedures related to travel
arrangements, expense reports, reimbursement for specific expenses or any other business travel issues.

Exempt employees will be paid their regular salary for any weeks in which they travel. Nonexempt employees will be paid for travel
time in accordance with company policy and with federal and state wage and hour laws.

Abuse of this business travel expense policy, including falsifying expense reports may result in disciplinary action, up to and
including termination of employment.

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TIME OFF AND LEAVES OF ABSENCE

Time Off and Leaves of Absence

The Company recognizes that employees benefit from time away from work for a variety of reasons—all of which contribute
towards a positive work-life balance for our employees. Therefore, the Company provides time off both paid and unpaid to
eligible employees for the following situations:

• Holidays
• Paid Time Off
• Family and Medical Leave
• Military Leave
• Jury and Witness Duty Leave
• Voting Leave
• Bereavement Leave

Holiday Policy

The Company offers paid time off for the observance of specific holidays each calendar year in accordance with the
policies and procedures described below. The Company observes the following paid holidays for eligible employees:

o New Year’s Day (January 1)

o Joe SCCY Day (second Monday in March)

o Memorial Day (last Monday in May)

o Independence Day (July 4)

o Labor Day (first Monday in September)

o Thanksgiving Day (fourth Thursday in November)

o Christmas Eve Day (December 24)

o Christmas Day (December 25)

SCCY EMPLOYEE HANDBOOK PUB. 6/2022 REV 3.00 PAGE 42


If a holiday falls on a non-scheduled workday, the Company usually observes the holiday on the preceding or the
following workday.

Holiday pay will be calculated based on the employee’s straight time pay rate (as of the date of the holiday) times the
number of hours the employee would otherwise have worked on that day, up to 8 hours maximum.

To be eligible for holiday pay, employees must work the last scheduled day immediately preceding and the first
scheduled day immediately following the holiday, unless otherwise scheduled and approved by your immediate
supervisor. If a holiday occurs during an employee’s PTO, holiday pay will be provided in place of PTO hours.

Paid time off for holidays will not be counted as hours worked for the purposes of determining overtime. Employees who
are on an extended leave of absence are not eligible to receive holiday pay.

Paid Time Off (PTO) Policy

Purpose
The purpose of this policy is to provide guidance regarding the scheduling, accrual, and payment of paid time off (PTO)
benefits. By providing PTO benefits, SCCY Industries, LLC recognizes the importance of time off in providing employees the
opportunity for rest and relaxation and to help them balance their work and personal lives.

Accruing PTO
SCCY’s PTO year is based upon a calendar year, based upon paid hours, limited to 2,080 hours per year, excluding overtime.
This means that your PTO year begins on January 1 and ends on December 31 of each year. If you are a regular full-time
employee, exempt or non-exempt, you are eligible to accrue and use PTO. The amount of accrued PTO you have available
for use is listed in SCCY’s time, attendance, and payroll portal. Employees hired on a part-time or temporary basis are not
eligible to accrue or use PTO. The rate at which you accrue PTO depends on various factors, including your years of service
with SCCY, and whether you are a full-time hourly or salaried employee. The number of hours or tier level an employee is
eligible to receive is based on the service anniversary date attained within that calendar year.

Accrual Rate
Accrued PTO is based on the number of years of employee service. Please see HR for accrual details.

Annual Carryover
PTO hours may roll over from year to year; however, the maximum amount of PTO carryover is 40 hours.

SCCY EMPLOYEE HANDBOOK PUB. 6/2022 REV 3.00 PAGE 43


Use and Scheduling of PTO
You must submit your request through the time and attendance system, or any other method as required by SCCY to your
Supervisor at least 24 hours prior to the schedule being completed. Paid time off may be scheduled in no less than one (1)
hour increments. Supervisors have the right to deny PTO time if the dates requested cannot be accommodated due to
business needs or staffing requirements. PTO requests are capped at 10 consecutive business days and must be approved
by senior management.

The PTO Program is an inclusive time off program intended for use in connection with vacations, short-term injuries, and
illnesses (non-work related), personal business, family care, and other needs which may require time off from work. PTO
cannot be used for missed time because an employee reports late to work, except during inclement weather (requires
Supervisor approval). When PTO is used, an employee is required to request payment of PTO hours, according to his or her
regularly scheduled workday. PTO is paid at the employee’s base rate of pay at the time the PTO is taken and does not
include overtime or any special forms of compensation such as incentives, commissions, or bonuses. Employees who give a
two week notice of employment termination must work the two weeks without utilizing PTO.

Process:
• All employees must confirm that they have accrued PTO available prior to requesting time off through SCCY’s time and
attendance and payroll system.
• PTO cannot be used before it is accrued - under no circumstances is PTO to be paid without an accrued balance.
• If you do not have PTO available and your time off is approved, it is unpaid time off.
• The supervisor will approve or deny the time off request through SCCY’s time and attendance and payroll system.

Exhaustion of Paid Time Off

It is the responsibility of each employee to manage their time effectively throughout the year. Time taken beyond an
employee’s available PTO balance will be unpaid and subject to SCCY’s absenteeism policy. If you have exhausted all eligible
time off, and or unapproved, then any additional time off may result not only in unpaid time but may also result in disciplinary
action for excessive absenteeism up to and including termination.

Cash Out Option


In November of every year, active non-exempt hourly and exempt employees will receive the option to cash out a maximum
of 40 hours of unused PTO per year. Employee’s making a cash out request must complete a “Paid Time Off Cash Out
Request” form and submit to payroll no later than November 30th. Employees are only allowed one Paid Time Off cash out
request per year.

Promotions / Demotions
All accrual changes due to a promotion or demotion will be effective at the beginning of a payroll period.

SCCY EMPLOYEE HANDBOOK PUB. 6/2022 REV 3.00 PAGE 44


Approved Leaves of Absences
• Employees will be required to use 40 hours of PTO for your first week of claim as it relates to Short-term Disability (STD)
and or Family Medical Leave Act (FMLA).
• Employees may use PTO banks to supplement leaves of absence (LOA), such as STD, state FMLA, federal FMLA,
workers compensation (WC) and military leave income. Employees may not combine PTO and any wage replacement
program beyond 100 percent of regular wages.
• Employee on LOA (STD, FMLA, WC and military leave) will accrue PTO for their respective leave duration not to exceed
90 days of leave absence.
• PTO does not accrue on unpaid personal leaves of absence.

Payment Upon Termination


PTO hours are not paid out to employees when they leave SCCY unless required by state law. Employees may not use PTO
time, accrued, or non-accrued, during their final two weeks of employment.

Personal Leave

Requests for personal leave will be considered and evaluated on an individual basis. Unpaid leaves may be granted for up to 30
calendar days for regular employees who have completed at least 6 months of service.

Approval or denial of such requests will be entirely at the Company’s discretion. In determining the feasibility of granting such
requests, factors such as the purpose of requested leave, availability of coverage for job responsibility during the requested leave,
previous absences, length of employment, prior work records and performance and similar considerations, will be considered. Such
requests must be submitted to Human Resources.

The Company will continue to pay for an employee’s benefits while on an approved personal leave up to 30 calendar days. However,
when the employee returns to work, he/she must arrange to reimburse the Company for his/her insurance premiums. Please
consult with Human Resources for further information.

The Company will attempt to return an employee to his or her former position or a comparable position upon return from personal
leave, at our discretion. Given changing business needs, however, no guarantee of reinstatement can be made.

Employees on leave are asked to confirm their return date at least two weeks before they return to work. Any requests for additional
leave must be made as soon as possible. Employees on leave who do not return as scheduled and fail to request or cannot show good
reason why an extension should be granted, will be considered to have voluntarily terminated their employment as of the day the
original leave expired.

SCCY EMPLOYEE HANDBOOK PUB. 6/2022 REV 3.00 PAGE 45


Family and Medical Leave

The Company will grant family and medical leave in accordance with the requirements of applicable federal and state law in effect
at the time the leave is granted. Although the federal and state laws sometimes have different names, the Company refers to these
types of leaves collectively as “FMLA Leave.”

Employee Eligibility

To be eligible for FMLA Leave benefits, employees must: (1) have worked for the Company for a total of at least 12 months; (2) have
worked at least 1,250 hours over the previous 12 months as of the start of the leave; and (3) work at a location where at least 50
employees are employed by the Company within 75 miles, as of the date the leave is requested. Eligibility requirements may differ
for employees on a military leave of absence. If employees are unsure whether they qualify, they should contact Human
Resources.

Reasons for Leave

Federal and state laws allow FMLA Leave for various reasons. Because employees’ legal rights and obligations may vary depending
upon the reason for the FMLA Leave, it is important to identify the purpose or reason for the leave. FMLA Leave may be used for one
of the following reasons, in addition to any reason covered by an applicable state family/medical leave law:

• The birth, adoption, or foster care of an employee’s child within 12 months following birth or placement of the child
(Bonding Leave).
• To care for an immediate family member (spouse, child, or parent with a serious health condition (Family Care
Leave).
• An employee’s inability to work because of a serious health condition (Serious Health Condition Leave).
• A “qualifying exigency,” as defined under the FMLA, arising from a spouse’s, child’s, or parent’s “covered active
duty” (as defined below) as a member of the military reserves, National Guard or Armed Forces (Military
Emergency Leave).
• To care for a spouse, child, parent or next of kin (nearest blood relative) who is a “Covered Servicemember,” as
defined below (Military Caregiver Leave).

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Definitions
• “Child” for purposes of Bonding Leave and Family Care Leave, means 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, or age 18 or
older and incapable of self-care because of a mental or physical disability at the time that Family and Medical
Leave is to commence. “Child,” for purposes of Military Emergency Leave and Military Caregiver Leave, means a
biological, adopted, or foster child, stepchild, legal ward, or a child for whom the person stood in loco parentis, and
who is of any age.
• “Parent” for purposes of this policy, means a biological, adoptive, step or foster father or mother, or
• any other individual who stood in loco parentis to the person. This term does not include parents-in- law. For
Military Emergency leave taken to provide care to a parent of a deployed military member, the parent must be
incapable of self-care as defined by the FMLA.
• “Covered Active Duty” means (1) in the case of a member of a regular component of the Armed
• Forces, duty during the deployment of the member with the Armed Forces to a foreign country; and
• in the case of a member of a reserve component of the Armed Forces, duty during the deployment of the member
with the Armed Forces to a foreign country under a call or order to active duty (or notification of an impending call or
order to active duty) in support of a contingency operation as defined by applicable law.
• “Covered Servicemember” means (1) a member of the Armed Forces, including a member of a reserve component
of the Armed Forces, who is undergoing medical treatment, recuperation or therapy, is otherwise in outpatient
status, or is otherwise on the temporary disability retired list, for a serious injury or illness incurred or aggravated in
the line of duty while on active duty that may render the individual medically unfit to perform his or her military
duties, or (2) a person who, during the five
• (5) years prior to the treatment necessitating the leave, served in the active military, Naval, or Air
• Service, and who was discharged or released therefrom under conditions other than dishonorable (a “veteran” as
defined by the Department of Veteran Affairs), and who has a qualifying injury or illness incurred or aggravated in
the line of duty while on active duty that manifested itself before or after the member became a veteran. For
purposes of determining the five-year period for covered veteran status, the period between October 28, 2009 and
March 8, 2013 is excluded.
• “Spouse” means the other person with whom an individual entered marriage as defined or
• recognized under state law for purposes of marriage in the state in which the marriage was entered, or in the case
of a marriage entered into outside of any state, if the marriage is valid in the place where entered into and could
have been entered into in at least one State. This includes common law marriage and same sex marriage in places
where these marriages are recognized.
• “Key employee” means a salaried FMLA-eligible employee who is among the highest paid 10 percent of all the
employees employed by the employer within 75 miles of the employee’s worksite.

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Length of Leave

The maximum amount of FMLA Leave will be 12 workweeks in any 12-month period when the leave is taken for: (1) Bonding Leave,
(2) Family Care Leave, (3) Serious Health Condition Leave, and/or (4) Military Emergency Leave. However, if both spouses work
for the Company and are eligible for leave under this policy, the spouses will be limited to a total of 12 workweeks off between the
two of them when the leave is for Bonding Leave or to care for a parent using Family Care Leave. The applicable “12-month period”
utilized by the Company is the rolling 12-month period measured backward from the date an employee uses his/her FMLA leave;
Under this method the 12-month period is measured backward from the day the employee uses any FMLA leave.

The maximum amount of FMLA Leave for an employee wishing to take Military Caregiver Leave will be a combined leave total of 26
workweeks in a single 12-month period. A “single 12-month period” begins on the date of the employee’s first use of such leave and
ends 12 months after that date.

If both spouses work for the Company and are eligible for leave under this policy, the spouses will be limited to a total of 26
workweeks off between the two when the leave is for Military Caregiver Leave only or is for a combination of Military Caregiver
Leave, Military Emergency Leave, Bonding Leave and/or Family Care Leave taken to care for a parent.

To the extent required by law, some extensions to leave beyond an employee’s FMLA entitlement may be granted when the leave is
necessitated by an employee’s work-related injury or illness or by a “disability” as defined under the Americans with Disabilities Act
and/or applicable state or local law. Certain restrictions on these benefits may apply.

Intermittent or Reduced Schedule Leave

Under some circumstances, employees may take FMLA Leave intermittently, which means taking leave in blocks of time, or by
reducing the employee’s normal weekly or daily work schedule. An employee may take leave intermittently whenever it is medically
necessary to care for a seriously ill family member, or because the employee is seriously ill and unable to work.

Leave taken intermittently may be taken in increments of no less than 1 hour. Employees who take leave intermittently or on a
reduced work schedule basis for a planned medical treatment must make a reasonable effort to schedule the leave so as not to
unduly disrupt the Company’s operations. Please contact Human Resources prior to scheduling planned medical treatment. If
FMLA Leave is taken intermittently or on a reduced schedule basis due to foreseeable planned medical treatment, we may require
employees to transfer temporarily to an available alternative position with an equivalent pay rate and benefits, including a part-time
position, to better accommodate recurring periods of leave.

If employees have been approved for intermittent leave and they request leave time that is unforeseeable, they must specifically
reference either the qualifying reason for leave or the need for FMLA leave at the time they call off.

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If an employee’s request for intermittent leave is approved, the Company may later require employees to obtain recertification
of their need for leave. For example, the Company may request recertification if it receives information that casts doubt on an
employee’s report that an absence qualifies for FMLA Leave, or if the amount or frequency of leave requested
changes from what was included in a prior certification.

To the extent required by law, some extensions to leave beyond an employee’s FMLA entitlement may be granted when the leave is
necessitated by an employee’s work-related injury/illness or a “disability” as defined under the Americans with Disabilities Act and/
or applicable state or local law. Certain restrictions on these benefits may apply.

Notice and Certification

Employees are required to provide:

• When the need for the leave is foreseeable, 30 days advance notice or such notice as is both possible
and practical if the leave must begin in less than 30 days (normally this would be the same day the
employee becomes aware of the need for leave or the next business day).

• When the need for leave is not foreseeable, notice within the time prescribed by the Company’s
normal absence reporting policy, unless unusual circumstances prevent compliance, in which case
notice is required as soon as is otherwise possible and practical.
• When the leave relates to medical issues, a completed Certification of Health-Care Provider form
within 15 calendar days (for Military Caregiver Leave, an invitational travel order or invitational travel
authorization may be submitted in lieu of a Certification of Health-Care Provider form).
• Periodic recertification (if required by law).
• Periodic reports during the leave.

Certification forms are available from Human Resources. At our expense, we may require a second or third medical opinion regarding
the employee’s own serious health condition or the serious health condition of the employee’s family member. In some cases, we
may require a second or third opinion regarding the injury or illness of a Covered Service Member. Employees are expected to
cooperate with the Company in obtaining additional medical opinions that we may require.

When leave is for planned medical treatment, employees must try to schedule treatment so as not to unduly disrupt the Company’s
operation. Please contact Human Resources prior to scheduling planned medical treatment.

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Recertification After Grant of Leave

In addition to the requirements listed above, if an employee’s Family and Medical Leave is certified, the Company may later require
medical recertification in connection with an absence that the employee reports as qualifying for Family and Medical Leave. For
example, the Company may request recertification if (1) the employee requests an extension of leave; (2) the circumstances of
the employee’s condition as described by the previous certification change significantly (e.g., employee absences deviate from
the duration or frequency set forth in the previous certification; employee’s condition becomes more severe than indicated in the
original certification; employee’s encounter complications); or (3) the Company receives information that casts doubt upon the
employee’s stated reason for the absence. In addition, the Company may request recertification in connection with an absence
after six months have passed since the employee’s original certification, regardless of the estimated duration of the serious health
condition necessitating the need for leave. Any recertification requested by the Company will be at the employee’s expense.

Military Emergency Leave Requirements

Employees are required to provide:

• As much advance notice as is reasonable and practicable under the circumstances.


• A copy of the covered military member’s active-duty orders when the employee requests leave and/
or documentation (such as Rest and Recuperation leave orders) issued by the military setting forth
the dates of the military member’s leave.

• A completed Certification of Qualifying Exigency form within 15 calendar days, unless unusual
circumstances exist to justify providing the form later.

Certification forms are available from Human Resources.

Failure to Provide Certification and to Return from Leave

Absent unusual circumstances, failure to comply with these notice and certification requirements may result in a delay or denial of
the leave. If an employee fails to return to work at leave’s expiration and has not obtained an extension of the leave, the Company
may presume that the employee does not plan to return to work and has voluntarily terminated their employment.

Compensation During Leave

Generally, FMLA Leave is unpaid. However, employees may be eligible to receive benefits through state-sponsored programs.
Employees may also choose to use accrued vacation and sick leave, to the extent permitted by law and the Company’s policy. All
payments of wage-replacement benefits and accrued paid leave will be integrated so that employees will receive no greater
compensation than their regular compensation during this period The Company may require employees to use available paid time
off to cover some or all the FMLA Leave. See PTO policy for additional information. The use of paid benefits will not extend the
length of a FMLA Leave.

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Benefits During Leave

The Company will continue making contributions to employee group health benefits during their leave on the same terms as if
employees had continued to actively work. This means that if employees want their benefits coverage to continue during their
leave, they must also continue to make the same premium payments that they are now required to make for themselves or their
dependents. Employees taking Bonding Leave, Family Care Leave, Serious Health Condition Leave, and Military Emergency Leave
will generally be provided with group health benefits for a 12-work week period. Employees taking Military Caregiver Leave may
be eligible to receive group health benefits coverage for up to a maximum of 26 workweeks. In some instances, the Company may
recover premiums it paid on the employee’s behalf to maintain health coverage if the employee fails to return to work following a
FMLA Leave.

The employee’s length of service as of the leave will remain intact but accrued benefits such as vacation and sick leave may not
accrue while on an unpaid FMLA Leave. See PTO policy for additional information.

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Job Reinstatement

Under most circumstances, employees will be reinstated to the same position they held at the time of the leave or to as similar
position with equivalent pay, benefits, and other terms and conditions of employment. However, employees have no greater right to
reinstatement than if they had been continuously employed rather than on leave. For example, if an employee would have been laid
off if he or she had not gone on leave or, if the employee’s position was eliminated during the leave, then the employee will not be
entitled to reinstatement.

Prior to being allowed to return to work, an employee wishing to return from a Serious Health Condition Leave must submit an
acceptable release from a health care provider that certifies the employee can perform the essential functions of the job as those
essential functions relate to the employee’s serious health condition. For an employee on intermittent FMLA leave, such a release
may be required if reasonable safety concerns exist regarding the employee’s ability to perform his or her duties, based on the
serious health condition for which the employee took the intermittent leave.

Key employees may be subject to reinstatement limitations in some circumstances. If employees are considered a “key employee,”
those employees will be notified of the possible limitations on reinstatement at the time the employee requests a leave of absence.

Confidentiality

Documents relating to medical certifications, recertifications or medical histories of employees or employees’ family members
will be maintained separately and treated by the Company as confidential medical records, except that in some legally recognized
circumstances, the records (or information in them) may be disclosed to supervisors and managers, first aid and safety personnel
or government officials.

Fraudulent Use of FMLA Prohibited

An employee who fraudulently obtains Family and Medical Leave from the Company is not protected by FMLA’s job restoration or
maintenance of health benefits provisions. In addition, the Company will take all available appropriate disciplinary action against
such employee due to such fraud.

Nondiscrimination

The Company takes its FMLA obligations very seriously and will not interfere, restrain, or deny the exercise of any rights provided by
the FMLA. We will not terminate or discriminate against any individual for opposing any practice, or because of involvement in any
proceeding related to the FMLA. If an employee believes that his or her FMLA rights have been violated in any way, he or she should
immediately report the matter to Human Resources.

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Additional Information Regarding FMLA

Employees should contact Human Resources as to any FMLA questions they may have.

State Law

Several states have family leave laws that provide leave benefits which exceed those available to employees under the FMLA.
Employees should contact Human Resources for additional information.

Military Leave

Federal law provides employees with the right to take leave in order to serve in the military. At the federal level, military leave rights
are governed by the Uniformed Services Employment and Reemployment Rights Act, commonly referred to as USERRA. This policy
discusses military leave under USERRA.

State laws may also provide an employee with rights to take military leave. If the employee works in a state that provides rights in
addition to those provided under USERRA, the Company will provide those rights. If an employee plans to request leave based on
military service, he or she should contact Human Resources for information on any additional rights or requirements, if applicable,
under state law.

Eligibility for Leave

The Company provides unpaid military leaves of absence to employees who serve in the uniformed services as required by USERRA
and applicable state laws. The uniformed services are defined as the Army, Navy, Marine Corps, Air Force, Coast Guard, Army
National Guard, Air National Guard, Commissioned Corps of the Public Health Service, and any other category of persons designated
by the President of the United States in time of war or national emergency. The uniformed services also include participants in the
National Disaster Medical System when activated to aid in response to a public health emergency, to be present for a short period
of time when there is a risk of a public health emergency, or when they are participants in authorized training.

Service consists of performing any of the following on a voluntary or involuntary basis: active duty, active duty for training, initial
active duty, inactive duty training, full time National Guard duty, absence from work for an examination to determine fitness for
such duty, and absence for performing funeral honors duty. Total military leave time may not exceed five years during employment,
except in certain, defined circumstances.

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Notice of Leave

Advance notice of leave is required, preferably in writing, unless giving of notice is impossible or unreasonable, or notice is prohibited
by military necessity (which is defined by the United States Department of Defense). When notice is required, employees must
provide their supervisor with as much advance notice as possible of any anticipated leave of absence for military service.

Compensation and Benefits During Leave

Accrued, unused vacation or PTO will be paid during military leave at the employee’s request. After 30 days of continuous military
leave, employees may elect to continue their health plan coverage at their own expense, for up to 24 months or during the remaining
period of service, whichever is shorter.

Reinstatement

To be eligible for reinstatement, an employee must have provided advance notice of the need for military leave (where
required) and have completed his or her service on a basis that is not dishonorable or otherwise prohibited under USERRA.

Employees whose military service will be for fewer than 31 days must report to back to work at the beginning of the first full,
regularly scheduled workday following completion of service, after allowing for a period of safe travel home and eight hours of rest.

Employees whose military service will be for more than 30 days, but fewer than 181 days must apply for re-employment within 14
days after completing service.

Employees whose service is greater than 180 days must apply for re-employment within 90 days after completing service.

As with other leaves of absence, failure to return to work or to reapply within applicable time limits may result in loss of reemployment
rights. Full details regarding reinstatement are available from Human Resources.

In general, an employee returning from military leave will be re-employed in the same or similar position and seniority level that
the employee would have attained had there been no military leave of absence. If necessary, the Company will provide training to
assist the employee in the transition back to the workforce.

An employee returning from military leave is entitled to any unused, accrued PTO benefits the employee had at the time the military
leave began minus any PTO benefits the employee chose to use during the leave. Upon reinstatement, the employee will begin to
accrue PTO benefits at the rate he or she would have attained if no military leave had been taken.

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Florida National Guard Leave

An employee will not be discriminated against because the employee either: (1) belongs to the National Guard and is required
to report for active duty; or (2) has an obligation as a member of a reserve component of the United States armed forces. Florida
employees who are members of the National Guard may take unpaid military leave when ordered to state active duty.

Members of the National Guard who take leave under this policy must notify the Company of their intent to return to work promptly
upon the completion of active duty. Members of the National Guard may, but are not required to, use any available paid time off
during military leave.

Employees who are members of the Florida National Guard or the United States reserves who are called to active national or
state duty are eligible to continue health insurance coverage, for themselves or their dependents, at the premium in effect prior
to the military leave. If the employee elects not to continue coverage while on active duty, the Company will, at the employee’s
request, reinstate coverage upon return from active duty. Such coverage will be reinstated without the employee having to satisfy
a waiting period and without a disqualification for any condition that existed at the time he or she was called to active duty.

Civil Air Patrol Leave

Eligible employees who are members of the Civil Air Patrol will be allowed up to 15 days of unpaid leave annually for the purpose
of participating in Civil Air Patrol training or missions. Employees will not be required to use available paid time off prior to taking
unpaid Civil Air Patrol leave but may choose to use such benefits.

Employees are eligible for leave if they are senior members of the Florida Wing of the Civil Air Patrol with at least an emergency
services qualification and have worked for the Company for at least 90 days prior to the start of leave.

The Company will not terminate, reprimand, or otherwise penalize a Civil Air Patrol member because of his or her absence due
to the use of Civil Air Patrol leave.

Employees must promptly notify the Company of his or her intent to return to work following the completion of Civil Air Patrol
Leave.

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Domestic or Sexual Violence Victim Leave

Employees who are victims of domestic or sexual violence or that have a family or household member who are a victim of
domestic violence may take up to three working days of unpaid leave time within a 12-month period. Employees employed with
the Company for three or more months are eligible for this leave. Employees must exhaust any available paid time off if
applicable.

“Family or household member” is defined as “spouses, former spouses, persons related by blood or marriage, persons who are
presently residing together as if a family or who have resided together in the past as if a family, and persons who are parents of
a child in common regardless of whether they have been married.”

Employees may use leave available under this policy to:

• Seek an injunction for protection against domestic violence or an injunction for the protection in cases of repeat violence,
dating violence or sexual violence.

• Obtain medical care and/or medical health counseling for the employee, a family member, or household member to
address physical or psychological injuries resulting from domestic or sexual violence.

• Obtain services from a victim-services organization, including, but not limited to, a domestic violence shelter or program
or a rape crisis center as a result of the act of domestic or sexual violence.

• Make the employee’s home secure from the perpetrator or seek new housing to escape the perpetrator.

• Seek legal assistance in addressing issues arising from the act of domestic or sexual violence or to attend and prepare
for a related court proceeding.

Except in cases of imminent danger to the health and safety of the employee or a family member, employees needing domestic
or sexual violence leave must provide the Company with at least 24 hours advance notice. The Company may require employees
to provide certification of the purpose of the leave in the form of a letter from a volunteer services organization, police report or
court record or other corroborating evidence.

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Jury and Witness Duty

SCCY Industries encourages employees to fulfill their civic duties by serving as a juror. Employees must notify their supervisor
upon receipt of a subpoena or notice of summons from the court that they have been called to serve as soon as possible so that
the supervisor may plan to accommodate their absence.

Jurors will receive regular wages (up to a maximum of 8 hours per day) while serving for the first 3 days of jury service. Hours
for jury service are not included in overtime calculations. As required by applicable state law, on the 4th day and each day
thereafter, jurors will receive compensation from the state.

Exempt employees will not incur any reduction in pay for a partial week of absence due to jury or witness duty. The Company
will comply with all state laws regarding pay for jury leave.

Verification from the court clerk of having served is required. Of course, employees are expected to report for work whenever
the court schedule permits.

Time Off to Vote

The Company encourages all employees to fulfill their civic responsibilities and to vote in official public elections. Generally, working
hours are such that an employee will have ample time to cast a vote before or after the work shift. If employees do not have sufficient
time to vote, however, that employee should discuss the matter with a supervisor. The Company will comply with all applicable state
and municipal voting time laws.

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Bereavement Leave

The Company recognizes the emotional difficulties associated with the death of a family member. The Bereavement Leave
Policy establishes uniform guidelines to associates for providing paid time off for absences related to the death of immediate
family members, and unpaid time off for absences related to the death of extended family members. All regular full-time
employees are eligible for bereavement leave.

You will be paid for the number of hours scheduled for work for that day, at your base rate of pay, in accordance with the following
schedule (the hours paid for bereavement leave will not be considered or influence overtime hour calculations):

FAMILY RELATIONSHIP AND NUMBER OF DAYS OF LEAVE

Current spouse, domestic partner, child, parent, parent-in-law, brother, sister, half-brother, half-sister, grandparent, grandparent-
in-law, grandchild, son-in-law, daughter-in-law, stepparent, stepbrother/sister or stepson/daughter, great-grandparent- 3 days
(paid)

Brother/sister-in-law, uncle, aunt, niece, nephew- 1 day (paid)

Cousin or close friend- 1 day (unpaid funeral leave)

SCCY expects the time noted above to be taken between the date of death through the funeral of the family member.

An additional 2 days unpaid may be requested for travel exceeding 500 miles each way.

Additional time may be approved by your supervisor, depending upon unusual circumstances or travel. However, no pay will be
granted for any additional time. Please discuss this with your supervisor or a member of the human resources team.

Employees must notify their supervisor no later than the employee’s scheduled starting time for the need to use bereavement
leave. Upon returning to work, associates must provide verification of need (obituary, death certificate, etc.) to support
bereavement, pay and/or additional approved time off.

If employee leaves work early due to a death in the family, employee will receive pay for those hours not worked up to your
scheduled hours. This workday will not count towards the number of bereavement days taken.

If production is scheduled for a weekend, for the purposes of the bereavement leave policy, the impacted employee is not
required to report to work nor is this time constituted as a bereavement day.

If an employee is on scheduled paid time off (PTO) at the time of a family member’s death, the employee may cancel the PTO
time and substitute bereavement time.

If bereavement leave falls during a Company-paid holiday, the bereavement time and pay will be utilized on the subsequent
scheduled workday.

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WORKPLACE SAFETY AND SECURITY

Workplace Violence

The safety and security of employees is of vital importance to SCCY Industries. Therefore, the Company has adopted a zero-
tolerance policy concerning workplace violence. Threats or acts of violence—including intimidation, bullying, physical or mental
abuse and/or coercion—that involve or affect company employees or that occur on the Company’s premises, will not be tolerated.

The prohibition against threats and acts of violence applies to all persons involved in the operation of the Company, including, but
not limited to, Company employees and other personnel, contract and temporary workers, consultants, contractors, customers,
vendors, visitors, and anyone else on the Company’s premises.

Violations of this policy by an employee will result in disciplinary action, up to and including termination from employment.

It is our goal to have a workplace free from acts or threats of violence and to respond effectively in the event that such acts or threats
of violence do occur.

Workplace violence is any intentional conduct that is sufficiently severe, abusive, or intimidating to cause an individual to reasonably
fear for his or her personal safety or the safety of his or her family, friends and/or property such that employment conditions are
altered, or a hostile, abusive, or intimidating work environment is created for one or several employees.

Examples of workplace violence include, but are not limited to:

• Threats or acts of violence occurring on Company premises, regardless of the relationship between
the parties involved in the incident.
• Threats or acts of violence occurring off Company premises involving someone who is acting in the
capacity of a representative of the Company.

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Examples of conduct that may be considered threats or acts of violence under this policy include, but are not limited
to:

• Threatening physical harm directed toward another individual


• Threatening an individual or his or her family, friends, associates, or property with harm
• The intentional destruction or threat of destruction of SCCY Industries or another’s property
• Menacing or threatening phone calls
• Stalking
• Veiled threats of physical harm or similar intimidation
• Actual violent or aggressive physical contact or harm
• Communicating an endorsement of the inappropriate use of firearms or weapons

Workplace violence does not refer to workplace arguments or debates that are zealous or impassioned. Rather, workplace violence
refers to behavior that demonstrates an intention to engage in violence, condones violence in our workplace, or targets any
individual with acts or threats of violence.

Employees should help maintain a violence-free workplace. To that end, employees are encouraged to immediately report any
incident that violates this policy to a supervisor, manager, or Human Resources.

No provision of this policy statement or any other provision in this policy alters the at-will nature of employment with SCCY
Industries. We will make the sole determination of to what extent, threats or acts of violence will be acted upon by the
Company. In making this determination we may undertake a case-by-case analysis in order to ascertain whether there is a
reasonable basis to believe that workplace violence has occurred.

Weapons in the Workplace

In the interest of maintaining a workplace that is safe and free of violence, the Company generally prohibits the presence or use of
firearms and other weapons in the Company’s premises, regardless of whether the person is licensed to carry the weapon.

The Company does permit under certain circumstances, experienced and qualified persons to carry firearms in the workplace.
Unless and until approved in writing from the CEO, the presence or use of firearms and other weapons in the Company premises
is strictly prohibited.

This prohibition specifically includes guns, rifles, and firearms of any type, including those for which the holder has a legal permit.
Other examples of prohibited weapons include, but are not limited to ammunition, bombs, bows and arrows, clubs, slingshots,
blackjacks, metal knuckles and similar devices that by their design or intended use are capable of inflicting serious bodily injury or
lethal force.

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In compliance with Florida law, the Company permits employees who lawfully possess firearms or ammunition to store their
firearms or ammunition inside their locked, privately-owned vehicles in the Company’s parking lots or other parking areas
provided by the Company. Such lawfully possessed firearms and ammunition may not be removed from the employees’ personal
vehicle or displayed to others.

Firearms Safety

Employees of SCCY must obtain written permission from the Founder/CEO to carry a firearm on Company property. Even if an
employee has a concealed weapons permit, he/she will still need to obtain permission to carry on SCCY property.

Following are firearms safety procedures:

1. Treat all firearms as if they are loaded.

2. Always point the muzzle in a safe direction.

3. Before taking possession of a firearm or handing a firearm to another individual, ensure the magazine
is removed and the slide is locked to the rear. Visually inspect the chamber to ensure no ammunition is
present. Never hand a firearm to a person muzzle first.

4. Never point a firearm at anyone including yourself.

5. Never engage in horseplay with any firearms or other weapons.

6. Do not let unauthorized personnel handle firearms for any reason.

7. All loading of firearms must be done by armorer, shooter, or experienced personnel.

8. Be honest if you have no knowledge about firearms. Do not overstate your qualifications.

9. Never attempt to adjust, modify, or repair a firearm unless you are trained and authorized to do so.

10. Eye and ear protection will always be worn when test firing.

SCCY employees will always follow all applicable State and Federal safety laws. No one under the age of 21 may operate on the
firing line. Failing to follow procedures will result in disciplinary action up to and including termination.

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Workplace Bullying

The Company does not tolerate bullying behavior. Individuals who engage in workplace bullying may be disciplined, up to and
including termination of employment.

Workplace bullying is the use of force, threats, or coercion to abuse, intimidate, or humiliate another employee. Workplace bullying
includes, but certainly is not limited to, the following:

• Verbal abuse, such as the use of patently offensive, demeaning, and harmful derogatory
remarks, insults, and epithets.
• Verbal or physical conduct that is threatening, intimidating or obscene.
• Pushing, shoving, kicking, poking, tripping, assaulting, or threatening physical assault, or intentionally
damaging a person’s work area or property.
• Sabotage, or deliberately subverting, obstructing, or disrupting another person’s work performance.

Cyberbullying refers to bullying, as defined above that occurs using a computer, cell phone, smartphone, tablet, pager, or other
device that transmits electronic information, regardless of whether the device is owned by or located at the Company or
connected to the Company network. Cyberbullying is also prohibited.

This policy in no way prohibits employees from engaging in activities that are protected under applicable state and federal laws,
including but not limited to any activity that is protected under Section 7 of the National Labor Relations Act, which includes the
right of employees to speak with others, engage in workplace debates and protest about their terms and conditions of employment.

Reporting and Response

Employees who are subject to, or witness, workplace bullying are encouraged to notify their supervisor or Human Resources
immediately. The Company will promptly investigate the complaint. The Company will maintain confidentiality to the extent possible,
consistent with its commitment to investigating the complaint promptly and thoroughly.

If the complaint is verified, the Company will take appropriate remedial and disciplinary action, which may include, but is not limited
to, verbal or written warnings, suspension, termination of employment, counseling, and other actions. The complaining party will
be advised of the results of the investigation.

Anti-Retaliation

The Company strictly prohibits retaliation against an employee for making a good faith claim of bullying or for participating in good
faith in an investigation of bullying.

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Work-Related Injuries

As an employee, you are expected to report all occupational injuries, accidents and near misses, no matter how minor, promptly to
your supervisor. No matter how minor an on-the-job injury may appear, it is important that it be reported immediately. As part of
our Drug Free Workplace program, you may be required to submit to a drug screen if you are injured on the job, and even if you are
not injured, but involved in an accident that results in injury or property damage.

Employees who sustain work-related injuries may receive workers’ compensation benefits. See the Company’s Workers’ Compensation
Insurance policy for more information. Employees who need to take time off from work due to a workers’ compensation illness or
injury may also be eligible for a leave of absence under the Company’s leaves of absence or reasonable accommodation policies.
Employees should consult with Human Resources for additional information.

Personal Protective Equipment (PPE)

All safety equipment will be provided by SCCY Industries and employees will be responsible for the reasonable upkeep of this
equipment. Any problems with or defects in equipment are to be reported immediately to your supervisor.

Safety Glasses— All employees are required to wear certified eye protection (safety glasses with Z87.1 designation) while
working in or traveling through the manufacturing area.
During onboarding, the Company will provide at no cost to each employee one (1) pair of safety glasses. If the glasses are
damaged or are no longer usable due to normal wear, the Company will replace employee’s glasses at no cost.
Excessive replacement of non-prescription safety glasses will be at employee’s expense.
All employees who wear prescription glasses must have hard side shields, provided by a safety glasses supplier, permanently
attached to the glasses’ frames.
For those employees needing prescription safety glasses, please see HR to discuss our prescription safety glasses
reimbursement program.

Safety Glasses Reimbursement Program—To assist employees who require prescription safety glasses, the Company will
subsidize the purchase of one (1) pair of new, certified safety glasses every two years. Employees will be given $100 towards
the purchase of prescription safety glasses. To receive the $100 subsidy, the employee will be required to produce the paid
receipt indicating the purchase of the safety glasses. The subsidy will be paid in the next payroll period, and taxed as applicable,
after the approval process. No additional subsidy will be paid if employee loses or breaks the safety glasses.

Hearing Protection—should be worn in designated areas.

Footwear—all footwear should be skid-free as well as closed toe and heel.

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Other PPE—should be worn in any other area as required by the company based on specific job duties.

Jewelry—for the protection of employees, dangling jewelry shall not be worn while working around machinery. The Company
reserves the right to exercise discretion in this area for safety purposes.

Dress—employees are advised to refrain from wearing loose or baggy clothing while working around machinery. The Company
reserves the right to exercise discretion in this area for safety purposes.

Long Hair—long hair is defined as any hair longer than shoulder length. It is the policy of the Company to ensure that all long hair
is securely tied back while working around machinery. The Company reserves the right to exercise discretion in this area for safety
purposes.

Employees are expected to wear the appropriate PPE per department requirements. Failure to do so will result in disciplinary action
up to and including termination.

Hazard Communication

Employees should be informed about potential hazards and substances associated with their work area and about control measures
being used to mitigate those hazards. Employees and visitors will find electronic and hard copies of our Safety Data Sheets (SDS)
located in each plant.

SDS’s are available for employees to review to understand the chemicals they may be exposed to in their work area. SCCY encourages
employees to familiarize themselves with any chemicals they may be working with. All chemical containers must be labeled, and
chemicals are never to be placed into food or beverage containers.

Any questions regarding SDS’s or any chemical that you work with can be directed to our Human Resources department.

Forklift Safety

In order to provide a safe working environment, forklift operators should be properly trained and licensed. On a regular basis, each
forklift operator must successfully complete SCCY’s instructional course for forklift certification.

All forklift operators are to be cautious and always engage in safe behavior. Forklift operators are expected to always yield to
pedestrians and must report all property damage and/or personal injuries to his/her supervisor immediately. Any unsafe actions by
a licensed forklift operator will lead to disciplinary action up to and including termination.

Any employee choosing to operate a forklift without proper training, license and the consent of his/her supervisor will be subject to
disciplinary action up to and including termination.

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Lockout/Tagout

Our Lockout/Tagout program is designed to maximize the safety of personnel when servicing and maintaining equipment. The
Lockout/Tagout policy requires that the person servicing equipment be in control of the energies present in the equipment. All
affected employees must be aware of this policy to avoid attempts at restarting equipment that has been locked out.

Employees should not, under any circumstances, attempt to start, service or operate equipment that is locked out or tagged out for
service. Violations of this policy will lead to disciplinary action up to and including termination.

Safety Committee

SCCY is committed to actively addressing safety issues or concerns.

If any employee has a safety concern, please contact your supervisor, a member of management, the Safety and Compliance
Manager or a member of the safety committee.

Smoke-Free Workplace

The Company provides a work environment that is smoke-free. Smoking and the use of all tobacco-related products, including but
not limited to, smoking, the use of chewing tobacco and the use of e-cigarettes is strictly prohibited inside the building.
Employees wishing to smoke they must do so outside company facilities in designated outdoor areas during scheduled
work breaks. Employees using these areas are expected to dispose of any smoking debris safely and properly.

Employees that observe other individuals smoking in the workplace have a right to object and should report the violation to their
supervisor or to another member of management. Employees will not be disciplined or retaliated against for reporting smoking that
violates this policy.

Employees that violate this policy or who tamper with “no smoking” signs may be subject to disciplinary action up to and including
termination.

Emergency Evacuation

In the event of a fire, the emergency fire alarm system should be activated by pulling one of the fire alarms. The source of a
potential fire or hazardous material emergency should not be investigated. Any employee who suspects an emergency should report
it immediately. In any emergency, reporting is the first essential step to protecting oneself and others.

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When the emergency fire alarm system is activated, all employees and visitors are expected to evacuate the building by exiting in
an orderly manner through the nearest exit.

When exiting, employees should not use elevators and should descend stairwells in an orderly manner. After exiting, employees
should report to the area away from the building exits designated as the meeting location. Once employees arrive at the designated
area, they should immediately report to their immediate supervisor and remain at that location until accounted for and authorized
to leave.

No reentry to the building will be permitted until an official all-clear notification is given.

Employees should review this policy and the evacuation procedures and notify Human Resources if they believe they might require
an accommodation or assistance to comply with these procedures in the event of an emergency.

Food and Beverages

SCCY Industries does not permit employees in our manufacturing areas to consume food at their workstations during production
hours because it interferes with safety, cleanliness, and productivity. Employees may consume beverages if the beverage does
not come into contact any materials involved in the production process.

Any employee needing an accommodation as it relates to this should advise their supervisor or Human Resources.

Employee Locker Policy

SCCY Industries LLC provides lockers to any employee who wants to use a locker to store their personal belongings during or
after work hours. Use of the lockers is a privilege.

Lockers are assigned by the HR Department. Employees must use their own lock to secure their locker. Lockers must be kept
locked when not in use.

SCCY Industries LLC is not responsible for any personal property kept in the locker. Lockers must be maintained in a clean and
sanitary manner and kept free from accumulation of food and trash. NO perishable food items are to be stored in the lockers.
Company tools and PPE, except personal use items, must not be stored in lockers.

All lockers are the property of SCCY Industries LLC and SCCY reserves the right to have access to these areas and to such
property at any time, without advance notice to any employee. If a locker must be opened by anyone other than the person using
the locker, a member of management shall be present. SCCY has the right to remove from lockers any facility property or any
other item(s) that are stored in violation of our policies.

Items such as flammable materials, soiled clothing, rags, paint thinner, illicit drugs, alcohol, firearms, inappropriate material, or

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items in violation of the Harassment, including Sexual Harassment, and Anti-Discrimination policy, etc., shall not be kept in the
locker.

Employees must NOT add labels, tags, posters, stickers, etc. inside or outside the lockers. Absolutely NO graffiti, writing,
painting, or any other form of vandalism will be allowed. Such actions are considered destruction of company property as defined
in the employee handbook and subject to disciplinary action up to and including termination.

Drug-Free Workplace

The Company strives to provide a safe environment for employees and others and to minimize the risk of accidents and injuries.
Accordingly, each employee has a responsibility to co-workers and the public to deliver services in a safe and conscientious manner.
Impairment, even when not readily apparent, can have catastrophic consequences. The Company has adopted a policy that all
employees must report to work and remain completely free of illegal drugs, abused or nonprescribed prescription drugs and
alcohol. The Company reserves the right to initiate a drug test for reasonable suspicion, post-accident and after property
damage has occurred.

Drug Use/Distribution/Possession/Impairment

The Company strictly prohibits the use, sale, attempted sale, conveyance, distribution, manufacture, purchase, attempted purchase,
possession, cultivation and/or transfer of illegal drugs or other unlawful intoxicants at any time, and in any amount or any manner,
regardless of occasion. “Illegal drugs” means all drugs whose use or possession is regulated or prohibited by federal, state, or local
law. These include prescription medication that is used in a manner inconsistent with the prescription or for which the individual
does not have a valid prescription. Marijuana remains illegal as a matter of federal law and therefore its use or possession violates
this policy. The Company will endeavor to accommodate individuals with disabilities in accordance with the requirements of the law.

Employees are also prohibited from having any such illegal or unauthorized controlled substances in their system while at work.

Included within this prohibition are lawful controlled substances that have been illegally or improperly obtained.

Alcohol Use/Distribution/Possession/Impairment

All employees are prohibited from distributing, dispensing, possessing, or using alcohol while at work or on duty and from coming onto
company premises, reporting to work, or working with alcohol in their systems. Furthermore, lawful off-duty alcohol use, while
generally not prohibited by this policy, must not interfere with an employee’s job performance.

Prescription and Over-the-Counter Drugs

This policy does not prohibit the possession and proper use of lawfully prescribed or over-the-counter drugs. However, an employee
taking medication should consult with a health care professional or review dosing directions for information about the medication’s

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effect on the employee’s ability to work safely, and promptly disclose any work restrictions to a supervisor or Human Resources.

The Company reserves the right to transfer, reassign, place on leave of absence or take other appropriate action regarding any
employee during the time the employee uses medication that may affect his or her ability to perform essential job functions
safely. The Company will comply with all requirements pertaining to providing reasonable accommodations to the extent
required by applicable law.

Counseling and Rehabilitation

Employees who voluntarily seek help for substance abuse (self-referral) by contacting the Company will be provided an opportunity
to pursue counseling and rehabilitation. An employee who is receiving counseling and/or treatment for substance abuse may use
available vacation, sick leave, or, if eligible, family, and medical leave. Health insurance may cover the costs of such services, but
costs not covered must be paid by the employee. The employee cannot return to work until released by a treatment provider to do
so, and when he or she receives a negative result on a return-to-work drug and/or alcohol test.

An employee’s decision to seek help voluntarily will not be used as a basis for disciplinary action, although the individual may be
transferred, given work restrictions, or placed on leave, as appropriate. A request for help is considered voluntary only if it is made
before the employee is asked to submit to any drug or alcohol test or is discovered to have otherwise violated this policy. The
length of allowable leave will be in accordance with federal and/or state laws pertaining to such leave. See Human
Resources for additional information.

Company’s Right to Search

The Company wishes to maintain a work environment that is free of illegal drugs, alcohol, firearms, explosives, or other improper
materials. To this end, the Company prohibits the control, possession, transfer, sale or use of such materials on its premises to the
extent permitted by applicable law. We require the cooperation of all employees in administering this policy.

Desks, lockers, and other storage devices are provided for the convenience of employees but remain the sole property of the
Company. Accordingly, they, as well as any articles found within them, can be inspected by any agent or representative of the
Company at any time, either with or without prior notice. There should be no expectation of privacy in these areas.

In addition, to ensure the safety and security of employees and customers, and to protect our legitimate business
interests, we reserve the right to question and inspect or search any employee or other individual entering or leaving
company premises or job sites. The inspection or search may include any packages or items that the individual may be
carrying, including briefcases, handbags, knapsacks, shopping bags, et cetera. These items are subject to inspection
and search at any time, with or without prior notice. We also may require employees to agree to reasonable inspection
of their personal property and/or person while on the job or on the Company’s premises. The individual may be requested
to self-inspect his or her personal property or person by displaying the contents of any packages and/or turning out his
or her pockets, etc., in the presence of a representative of the Company, typically a management employee of the same

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gender. The Company will not tolerate any employee’s refusal to submit to a search.

Cameras and Video Surveillance

For purposes of workplace safety and security and to prevent theft and other misconduct the Company has installed video
surveillance cameras in all work areas.

If there is any reported incident of theft, trespass, workplace violence, employee misconduct or any type of safety violation (hereafter
collectively referred to as “security incidents”), the Company will utilize its surveillance equipment as an investigatory tool. The
Company will also make use of its surveillance equipment to deter any future security incidents.

The Company also reserves the right to actively monitor, through its surveillance cameras, any areas for safety reasons (to protect
against equipment failure, breakage, or accident) or confidentiality reasons (to protect documents or other proprietary information).

Although the video surveillance described in this policy is intended to monitor for security incidents and other safety reasons at the
Company, it is possible that such surveillance may monitor activities not related to the Company’s business.

The Company respects the privacy of its employees. Accordingly, no video cameras will be installed in the Company’s restrooms or
in any lactation or changing areas.

The surveillance video cameras and any video footage from the surveillance are to be used solely for the purposes of this video
surveillance policy. Any unauthorized use of these video cameras and/or videotapes is strictly forbidden and may result in discipline,
up to and including termination of employment.

Visitors

Restricting access to Company premises helps maintain safety standards, protect against theft, ensure security of equipment,
protect confidential information, safeguard employee welfare, and avoid potential distractions and disturbances. For this reason,
only authorized visitors are allowed in the workplace and all authorized visitors, including friends, family, and former
associates, must register at the office. All visitors must always be escorted by a(n) SCCY Industries employee. Employees
being visited are responsible for the actions of their guest(s). Should a guest of an employee act in such a
manner that disrupts the normal working conditions of the Company or threatens the security of the Company
and/or its employees, the employee accompanying the guest may be held responsible for the guest’s actions
and subject to disciplinary action up to and including termination of employment.

The Company reserves the right to verify the contents of packages and briefcases brought onto company
premises by visitors.

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If an employee suspects or becomes aware of any unusual situation, he or she should immediately notify
Security and/or Human Resources.

Use of Company Equipment and Resources

Company Equipment

When using company vehicles or other property, employees are expected to exercise care, maintain the property in safe working
order, and follow all operating instructions, safety standards and guidelines.

Employees should notify their supervisors if any equipment, machines, tools, or vehicles appear to be damaged, defective or in need
of repair. Prompt reporting of damages, defects, and the need for repairs could prevent deterioration of equipment and possible
injury to employees or others. Employees who have questions about their responsibility for maintenance and care of equipment or
vehicles used on the job should consult their supervisor.

All employees are expected to comply with all local, state, and federal laws while operating company vehicles and other equipment.
The Company may discipline employees who engage in unlawful conduct.

Company Resources

The Company has significantly invested in telephone lines, fax machines, photocopiers and other types of business equipment,
internet access and software that are vital to keeping our operations flowing smoothly and effectively. The Company’s resources
are limited and, except as provided in the Electronic Resources policy in this National Handbook, should be used for business
transactions only and not for personal use, unless explicitly authorized by a supervisor.

Electronic Resources

This policy describes the Company’s general guidelines for using its electronic resources, including electronic mail (email), voicemail,
internet access and computer systems.

Employees should use the Company’s electronic resources with the understanding that these resources are provided for the benefit
of the Company’s business. Employees may use company electronic resources for personal use, during nonworking time, if such
use complies with company rules and applicable laws. Employees should never use the Company’s electronic resources for
personal use in a manner that interferes with their work duties or any responsibilities to customers.

Sending, saving, accessing, or viewing obscene or similarly offensive material on the Company’s electronic resources is prohibited.
Messages stored and/or transmitted by the Company’s electronic resources, including the computer, voicemail, email, or the
telephone system, must not contain content that may reasonably be considered to be obscene or that in anyway violates the

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Company’s anti-harassment and ant-discrimination policies. Prohibited material includes, but is not limited to, sexual comments,
jokes or images, racial slurs, gender-specific comments, or any comments, jokes or images that would discriminate against or

harass someone based on his or her race, color, sex, age, national origin or ancestry, disability, or any other category protected
by federal, state, or local law. Likewise, any use of the internet, email, or any other electronic resource to engage in harassment
or discrimination prohibited by Company policies is unlawful and strictly prohibited. Violators may be subject to discipline,
up to and including termination of employment.

Unless otherwise noted, all software on the internet should be considered copyrighted work. Therefore, employees are prohibited
from downloading software and/or modifying any such files without permission from the copyright holder.

No Solicitation

The Company’s electronic resources must not be used for solicitation purposes during working time. The Company’s no solicitation
rule applies to the use of electronic resources.

Software Code of Ethics

Employees may not duplicate any licenses, software, or related documentation for use either on the Company’s premises or elsewhere
unless the Company is expressly authorized to do so by agreement with the licenser. Unauthorized duplication of software may
subject users and/or the Company to both civil and criminal penalties under the United States Copyright Act.

Employees may not give software to any outsiders including contractors, customers, or others. Employees may use software on
local area networks or on multiple machines only in accordance with applicable license agreements. Employees may not download
software from the internet and install it on their computers.

The Company reserves the right to audit any company computer to determine what software is installed on the local drive(s).

Employee Responsibility

Each employee is responsible for the content of all text, audio, or images that they place or send using the Company’s electronic
resources. The same standards should be utilized for the creation of email messages in connection with an employee’s work as
would be utilized for other company correspondence or memoranda.

Computer and Systems Security

All computers and the data stored on them are, and always remain, the property of SCCY Industries. As such, all messages
created, sent, or retrieved over the internet or the Company’s electronic mail systems are the property of the Company, and should
be considered company information. The Company reserves the right to retrieve and read any message composed, sent, or received
using the Company’s electronic resources, including all computer equipment and the electronic mail system, for any business
reason, including but not limited to, ensuring compliance with this and all company policies. Under no circumstances should an

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employee share their computer passwords with another employee or anyone else not authorized by the Company.

Employees should be aware that even when a message is deleted or erased, it is still possible to recreate the message; therefore,
ultimate privacy of a message cannot be ensured to anyone. Accordingly, internet and email messages are not private. Furthermore,
all communications including text and images can be disclosed to law enforcement or other third parties without prior consent of
the sender or the receiver.

Employees should also be aware that duplicates of email transmitted through a personal, web-based email account using company
equipment could be stored on that equipment; likewise, information regarding internet sites that an employee has accessed may
also be stored. Employees should not have any expectation of privacy when using the Company’s equipment,
systems, and/or internet.

Social Media Acceptable Use

The has established the following guidelines for employee participation in social media. Note: As used in this policy, “social media”
refers to blogs, forums, and social networking sites, such as Twitter, Facebook, LinkedIn, YouTube, Instagram, etc.

Off-duty use of social media


Employees may maintain personal websites or web logs on their own time using their own facilities. Employees must ensure that
social media activity does not interfere with their work. In general, the company considers social media activities to be personal
endeavors.

On-duty use of social media

Employees may not engage in social media activity during work time. The company monitors employee use of company
computers and the Internet, including employee blogging and social networking activity.

Respect
Demonstrate respect for the dignity of the company, its owners, its customers, its vendors, and its employees. A social media site
is a public place, and employees should avoid inappropriate comments. For example, do not use ethnic slurs, personal insults, or
obscenity, or use language that may be considered inflammatory. Do not violate the Companies’ policies, including, but not limited to anti-
discrimination and anti-harassment policies through use of social media.

Post disclaimers
If an employee identifies himself or herself as a company employee or discusses matters related to the company on a social media
site, the site must include a disclaimer on the front page stating that it does not express the views of the company and that the
employee is expressing only his or her personal views. For example: “The views expressed on this website/Web log are mine alone
and do not necessarily reflect the views of my employer.” Place the disclaimer in a prominent position and repeat it for each posting.

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Employees must keep in mind that if they post information on a social media site that is in violation of company policy and/or
federal, state, or local law, the disclaimer will not shield them from disciplinary action.

Competition
Employees should not use social media to criticize the company’s competition and should not use it to compete with the
company.

Confidentiality
Do not identify or reference company clients, customers, or vendors without express permission from the Company. Employees
may not disclose any confidential or proprietary information of the Company. For examples of confidential information,
please refer to the confidentiality policy. When in doubt, ask before publishing.

New Ideas
Please remember that new ideas related to work, or the company’s business belong to the company. Do not post them on a social
media site without the company’s permission.

Trademarks and Copyrights


Do not use the company’s or others’ trademarks on a social media site or reproduce the company’s or others’ material without
first obtaining permission.

Legal
Employees are expected to comply with all applicable laws, including but not limited to, Federal Trade Commission (FTC)
guidelines, copyright, trademark, and harassment laws.

Discipline

Violations of this policy may result in discipline up to and including immediate termination of employment.

Note: Nothing in this policy is meant to, nor should it be interpreted to, in any way limit your rights under any applicable federal,
state, or local laws, including your rights under the National Labor Relations Act to engage in protected concerted activities with
other employees to improve terms and conditions of employment, such as wages and benefits.

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Email Content Screening

The Company maintains the right to screen all inbound and outbound email content, including, but not limited to those to and from
a personal account. Email messages or attachments that contain obscene or similarly offensive material may be quarantined and
held from transmission or receipt.

If an employee wants to communicate with an attorney or send an otherwise confidential piece of communication that he or she does
not want the Company to monitor, the employee should consider using a personal email address and personal computer equipment.
If an employee does use company equipment, he or she consents to any monitoring by the Company and should understand that he
or she has no right to privacy with respect to such communications, to the extent permissible under applicable law.

Virus Protection

To prevent computer viruses from being transmitted through the system, employees are not authorized to download any software
from the internet onto their computer or any drive in that computer.

The Company maintains virus protection software on all network servers and filters all inbound and outbound email for virus
attachments. Email containing a virus will be quarantined and both the sender and recipient will be informed. If the virus can be
removed, the message will be forwarded to the recipient.

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Employee Badges

SCCY Industries assigns a security badge to each new employee for the purpose of gaining access to specific areas in the building
necessary for the completion of their work. Under no circumstances should a SCCY employee give his/her badge to a non-employee
to gain access to the building or lend their badge to another SCCY employee as this would be a breach of company security.

If an employee loses or misplaces his/her badge, it is the responsibility of the employee to notify the Human Resources department
immediately so another badge may be reassigned.

Cell Phone Use/Texting While Driving

Employees whose job responsibilities include regular or occasional driving and who use their personal cellular telephone for
business-related work are expected to put safety first. Therefore, personal, and company-supplied cellular telephones are not to be
used while driving.

If an employee receives a call on a cellular telephone while driving, he or she must pull over safely, park, and then either answer the
telephone or return the call or text message. Furthermore, if an employee needs to make a company-related cellular telephone call,
he or she must also pull over safely, park and then place the call.

Employees also may not send or review text messages while driving as part of their job responsibilities. The purpose of this policy
is to ensure the safety of employees, other motorists, and company property. Employees who are charged with traffic violations, or
cause accidents or injuries, resulting from their use of personal or company-issued cellular telephones or blackberries while driving
will be solely responsible for all liabilities, fines, etc., that result, to the extent permissible under the law.

Employees whose job responsibilities do not specifically include driving as an essential function, but who are using their personal
cellular telephone for business use, are also expected to abide by the provisions of this policy.

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Inclement Weather/Office Closing

This policy establishes procedures to close or delay opening of the Company due to hazardous or severe weather conditions, as well
as procedures for notifying employees of a closure or delay.

SCCY’s CEO or President of Operations are authorized to decide to close the Company due to hazardous or severe weather. The
Company will notify employees of any delay or closure by leaving a voicemail on the company’s main telephone line at 386-
322-6336.

When hazardous or severe weather occurs during the day, SCCY’s CEO or President of Operations will decide whether to close
early. If the Company closes early due to hazardous or severe weather, nonexempt employees will be paid for all hours worked
and will otherwise be paid in accordance with applicable federal and state law. For hours not worked and not otherwise compensable,
nonexempt employees can use available paid time off. Exempt employees who report to work but are sent home early due to
hazardous or severe weather will receive pay for a normal working day.

When the Company is open, but an employee is unable to report to work because of hazardous or severe weather, the employee
should report any delay or absence to his or her supervisor at the earliest possible time. Employees will be required to use available
paid time off on days when the Company is open, but the employee does not report to work because of inclement weather. For
employees that do not have paid time off available, nonexempt employees will be paid only for time worked and exempt employees
will not be paid for full-day absences due to inclement weather. If the office remains open, employees must make a reasonable effort
to report to work as scheduled.

Employees should not take unnecessary risks to report to work in unsafe conditions.

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No Solicitation/Distribution of Literature

The Company has established the following rules applicable to all employees and nonemployees that govern solicitation, distribution
of written material and access to Company property:

• Employees may engage in solicitation activities only during nonworking times. No employee may
engage in solicitation during his or her working time or during the working time of the employee or
the employees at whom such activity is directed.
• Employees may distribute or circulate any written or printed material only in non-work areas, during
nonworking times. No employee may distribute or circulate any written or printed material in work
areas at any time, or during his or her working time or during the working time of the employee or
employees at whom such activity is directed.
• Nonemployees are not permitted to solicit or to distribute written material for any purpose on
Company property.
• Off-duty employees are not permitted in work areas.

Strict compliance with these rules is required.

As used in this policy, “working time” includes all time for which an employee is paid and/or is scheduled to be performing services
for the Company; it does not include break periods, meal periods, or periods in which an employee is not performing and is not
scheduled to be performing services or work for the Company.

Bulletin Boards

SCCY Industries values the efficient communication of information to all employees as necessary, so bulletin boards are available
to for this purpose. These bulletin boards contain required regulatory postings as well as general announcements. These bulletin
boards are strictly for Company use only and the Company reserves the right to refuse permission to post or take down any
announcement not previously approved by the Company. All postings must be approved by Human Resources in advance.

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EMPLOYEE BENEFITS

Benefits Overview

Benefit plans offered by SCCY Industries are defined in legal documents such as insurance contracts and summary plan descriptions.
If employees are offered benefits, and if a question arises about the nature and extent of plan benefits or if there is a conflict in
language, the formal language of the Plan documents govern, not the informal wording of this Handbook. Plan documents, if
applicable, are available for your inspection. The Company and its designated benefit plan administrators reserve the right to
determine eligibility, interpretation and administration of issues related to benefits offered by the Company.

Employment benefits vary according to the position and status of the employee.

Full-time employees are eligible to receive all employment benefits offered by SCCY Industries. To receive certain benefits, eligible
employees may be required to meet participation requirements and pay required premiums and other contributions.

Employees should contact Human Resources for detailed benefits information.

Insurance Benefits

The Company currently offers insurance benefits to eligible employees and their spouses, dependents, and other qualifying family
members in an equitable and cost-effective way and in compliance with applicable state and federal laws.

Employees have a specified period from their date of employment to select their insurance plans. Once the selection is made it will
remain fixed for the remainder of the plan year; however, employees will have an opportunity to make changes to their benefit
selections during the Company’s annual open enrollment period.

Employees who experience a qualifying life event such as marriage, divorce or the birth of a child will also be allowed to make a
change in their benefit selection when that event occurs, in accordance with the terms of the Plan document.
Both the Company and the employee contribute to the cost of insurance benefits. Employees should contact Human Resources with
any questions.

Same-Sex Marriages, Civil Unions & Domestic Partnerships

The Company complies with all applicable federal and state laws regarding the provision of benefits to same-sex spouses, domestic
partners, and couples in a civil union. Employees should contact Human Resources if they have any questions regarding benefits
eligibility for themselves or their spouses, domestic partners, or partners in a civil union.

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Employee Recognition

SCCY Industries recognizes the contribution each employee makes to the company. The Employee Recognition program is one way
the company has chosen to thank employees.
Regular, full-time employees will be recognized at one, three, five and ten years of service and every five years thereafter.

Employee Purchase Program Policy

Purpose

As a benefit of employment, the Company provides employees the opportunity to purchase company products and merchandise.
Purchases, as it relates to firearms, are for your (the Employee) use only; not neighbors, friends, or family outside of your immediate
household (primary residence). Employee purchase reduction costs cannot be combined with any other promotion, discount, or
coupon.

Eligibility

Active employees classified as regular full-time.

Methods of Payment

Employees may purchase all products and merchandise with credit cards (Visa, MasterCard, Discover, American Express).
Special Discounted Items
Closeout items, products that have gone through the financial write-down process, inventory reduction items and overstock products
offered through our retail system (online store) with a retail selling price below the normal average unit cost, or below the current
market value, may be purchased by employees at no less than the stated special selling price offered to our external customers.

Program Types

Employee Merchandise Purchase: Employees can purchase Company retail merchandise, with an employee discount, via our
online store. Please see the Human Resources Department for employee discount information.
Employee Firearm Purchase: Employees who legally qualify may purchase a personal use firearm. Employees will receive a
discount for the purchase of a firearm. See the employee purchase forms for details. Please see a member of the Compliance
Department for employee purchase form and other related information. Please note: the employee gun purchase will be shipped to
an authorized gun dealer and the employee is responsible for all related fees and or costs.

Violations of this policy include, but are not limited to:

• Accepting reimbursement for purchased items, other than from a family member
• Providing discounts greater than allowed
• Exceeding your annual purchase limit
• Reselling product for profit
Any violation or abuse of this employee purchase program may result in disciplinary action up to and including termination of
employment. Such a violation or abuse must be reported to an immediate supervisor or a member of the Human Resources
Department immediately.

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One-Year Firearm Program

SCCY offers employees who have worked for the Company for at least one year, the opportunity to receive a one-year
anniversary firearm. Please contact the Human Resources department for further information. The employee must
legally qualify to be in possession of a firearm and comply with the policies and procedures outlined in the
Purchase Program Policy described above.

Workers’ Compensation

When work-related accidents, injuries or illnesses occur, employees may be eligible for workers’ compensation insurance benefits.
The Company provides a comprehensive workers’ compensation insurance program at no cost to employees and in accordance with
applicable state law. This program covers most injuries or illnesses, sustained in the course of employment, that require medical,
surgical, or hospital treatment. Subject to applicable legal requirements, workers’ compensation insurance provides benefits or,
if the employee is hospitalized, treatment immediately.

Reporting Work-Related Injury or Illness

Employees who sustain a work-related injury or illness should inform their supervisor immediately. No matter how minor an on-the-
job injury may appear, it is important that it be reported immediately. This will enable an eligible employee to qualify for coverage.

Leaves of Absence/Accommodation

Employees who need to take time off from work due to a workers’ compensation illness or injury may also be eligible for a leave
of absence under the Company’s leaves of absence or reasonable accommodation policies. Employees should consult with Human
Resources for additional information.

Return to Work Program

SCCY Industries’ wants to provide meaningful work activity for all employees who become unable to perform all, or portions, of
their regular work assignment. Thus, we have implemented a Return-to-Work Program, which includes transitional or light-duty
work. The Return-to-Work Program accommodates injured workers by identifying new duties or modifying jobs to meet their
physical capacities and respect doctors’ restrictions, to the extent the Company is able to accommodate such modification
without undue burden or hardship.

The goal is to return our employees to productive work, a regular schedule, and full wages as soon as possible. Because our
employees are so valuable, we have both a transitional duty program, which is designed as a therapeutic tool to accelerate
return to work by addressing physical and emotional limitations, and an alternate duty program, which is a placement service for
workers deemed unable to perform the functions of their pre-injury job by a medical professional.

Employees who are ready to return to work following a workers’ compensation-related leave of absence must supply a certification

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from a health care provider confirming the employee’s ability to return to work. The Return-to-Work program is temporary,
and not to exceed six months.

Fraud

The Company will notify the workers’ compensation insurance company if we have reason to believe an employee has supplied false
or misleading information in connection with a claim and/or has filed a fraudulent claim. Workers’ compensation fraud is a crime
and may also be grounds for disciplinary action, up to and including termination of employment.

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Educational Assistance Program Policy

In accordance with the below policy, SCCY may provide educational assistance to its employees to allow them to enhance their
career with SCCY.

General Provisions:

Coursework must be designed to enhance the knowledge, skills, and abilities relating to the official duties that the employees
perform and must be taken for certification or credit at an accredited college or university.

• All regular full-time employees are eligible for educational assistance once they have completed one (1) year of employment.

• Employees should seek approval prior to enrollment. Human Resources MUST receive requests for educational assistance no
later than two weeks prior to the first day the course begins. Human Resources will consider the following factors in evaluating
requests for educational assistance:

• Employee performance (must be satisfactory all measured areas, such as attendance, production quality). No warning
letters in the past 6 months.

• The nature, content, and purpose of the course of study.

• The benefits to be derived by the enhanced ability of the employee to serve SCCY.

• Availability of funds for such reimbursement in the current fiscal year.

• The number of courses the employee has submitted for reimbursement in the calendar year.

• The employee’s level of responsibility.

• The estimate of the costs involved.

Reimbursement Requests:

• SCCY will consider requests for reimbursement of tuition, required books, required software, lab fees, and registration fees
and administrative fees.

• If a coursework reimbursement request is approved, then reimbursement will be based on the following schedule:

GRADE REIMBURSEMENT

“A+, A, A-, B+, B, or Pass 100%

B-, C+, or C 75%

C- or below, or “Fail” 0%

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Approval/Reimbursement Process

• An employee applying for educational assistance shall complete and provide the following to the Human Resources
Department: Education Assistance application and a copy of the course syllabus/course description.

• Human Resources will determine whether the request is eligible for educational assistance and advise the employee of its
conclusion.

• Upon completion of coursework previously approved for educational assistance, the employee must submit a copy of the school
grade report and original receipts for expenses to Human Resources.

• Human Resources will verify expenses and submit the request for the appropriate amount of reimbursement. Upon approval,
the reimbursement will be issued by direct deposit to the employee’s account.

• Employees receiving educational reimbursement from other sources must inform SCCY and reimbursement will be adjusted
accordingly. Failure to do so results in zero-dollar ($0) reimbursement.

• Classes and assignments are to be completed outside of regular working hours and should not interfere with the employee’s
work. Unsatisfactory job performance during enrollment may result in forfeiture of educational assistance and discipline.

• Employees shall not use any space, personnel, equipment, or supplies of the company in the process of fulfilling any of the
requirements of the coursework for which they are being reimbursed. Employees shall not be given any bonus or additional
incentive pay for completion of a degree for which any costs were reimbursed under this Policy.

Please note: Education assistance may be taxable. Taxes will be processed per federal and/or state laws.

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In consideration of payment of these expenses, you agree to the following:

Should you terminate employment with the Company voluntarily, you agree to repay reimbursements you received for tuition
assistance in the following manner:

TIME ELAPSED

Amount of time between the date(s) of the Tuition Assistance reimbursement and the employee’s Termination Date.

PERCENTAGE OF REPAYMENT

Applicable to the amount of the Tuition Assistance Received During the 24 Months Prior to the employee’s Termination Date:

Less than 6 months 100 Percent

More than 6 months, but less than 12 months 75 Percent

More than 12 months, but less than 18 months 50 Percent

More than 18 months, but less than 24 months 25 Percent

If any action is brought to enforce any provision of this program by SCCY, you agree to pay all costs associated with the action
as well as any costs of litigation, including all reasonable attorney fees.

This educational expense agreement creates no contract of employment between you and SCCY. You may terminate your
employment with the company at any time with or without cause, and SCCY may terminate your employment at any time with
or without cause.

If you have any questions regarding the educational expense policy or this agreement, please contact the Human Resources
Department at (386) 322-6336.

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Employee Referral Policy

Acquiring and retaining quality talent is the key to any organization’s success. SCCY Industries LLC is always looking for good
people, and we feel that friends and associates of our employees are often an excellent source of new hires.

If you know someone who would be a good addition to SCCY Industries LLC, and they meet the qualifications for an open
position, you may receive $200.00 if you refer them for employment and they are hired, in accordance with the below schedule:

If your candidate is hired, you will be awarded $100.00 after their 6-month period. If the new hire is successful and has a favorable
employment record (safety, quality, attendance, performance, and positive perspective) after one year, you will receive another
$100.00.

Program Rules:

• All Full-time, exempt, and non-exempt employees, excluding Executive Team, Directors, Managers, and HR personnel are
eligible to refer candidates.

• The referral must represent the candidate’s first contact with SCCY Industries LLC. Temporary, contract and former
employees of SCCY are not eligible candidates for referral awards.

• To be eligible for an award, the referral must first submit an online employment application.

• The first employee to refer a candidate will be the only referring employee eligible for payment.

• Only candidates who meet the essential qualifications for the position will be considered.

• All candidates will be evaluated for employment consistent with SCCY’s policies and procedures.

• The referring employee and referred applicant must be actively employed with SCCY on the payment processing dates.

• All employee referral payments will be paid within 14 days after the referred employee’s successful 6-month period, and
within 14 days after the referred employee’s successful 1-year anniversary.

• All employee referral payments will go through our payroll and are subject to normal withholding taxes.

If you do not receive a referral payment that you believe is due to you, it is your responsibility to notify Human Resources to
investigate same. No interest shall accrue or be paid on delayed referral payments.

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LEAVING THE COMPANY

Separation from Employment

Employees of SCCY Industries are employed on an at-will basis. This means that employment may be terminated by either party at
any time, with or without cause or notice. Nothing in this policy is intended to limit or alter the at-will nature of your employment.

Employees may leave the Company for a variety of reasons. Regardless of the reason, we strive to ensure that all separations from
employment are handled fairly, efficiently and in compliance with applicable federal and state laws.

Pay and Benefits Upon Termination

Final wages will be paid in accordance with applicable law. In accordance with Company policy, paid time off will not be paid upon
termination unless otherwise required by law.

Return of Company Property

Employees are required to return all company property (e.g., computers, equipment, vehicles, passwords, uniforms, ID badges,
credit cards) that is in their possession or control in the event of termination of employment, resignation, retirement, or layoff or
immediately upon request. When allowed by law, and in accordance with applicable law, the Company may withhold from the
employee’s check or final paycheck the cost of any items that are not returned when required. No information belonging to the
Company can be copied for the employee’s use. We may also take all action deemed appropriate to recover or protect
company property.

SCCY EMPLOYEE HANDBOOK PUB. 6/2022 REV 3.00 PAGE 86


References/Verifications of Employment

So that the Company can handle requests for job references in a consistent, fair, and lawful manner, all requests for official job
references on behalf of the Company should be forwarded to Human Resources. No other manager or supervisor is authorized to
release references on the Company’s behalf for current or former employees. Our policy concerning references for former employees
is to disclose only the dates of employment and the title of the last position held.

Exit Interviews

Before leaving SCCY Industries, employees may be asked to participate in a voluntary exit interview. This will provide closure to the
employee’s employment with the Company and will allow the Company to ensure that it has resolved various administrative matters,
answered any questions about continuation of benefits and listened to any of the employee’s comments or ideas about improving
the Company’s operations. There is no guarantee of an exit interview.

Rehire Eligibility and Service Recognition

Purpose

It is the policy of the Company to consider rehire of former employees who voluntarily left employment or were laid off due to
business needs. This policy outlines the rules regarding eligibility for re-employment and bridging of service (service recognition),
where appropriate.

Eligibility for Rehire

Employees who were part of an involuntary reduction in force, as well as those employees who voluntarily resigned with proper
notice, will be eligible for rehire if they had a satisfactory work record while employed by the Company. A job application must
be submitted, and the applicant must meet all minimum qualifications and requirements of the applicant applied position. A
background check will be required prior to being rehired, regardless of the amount of time away from the Company.

Ineligibility for Rehire

Employees who left as a part of performance management or corrective action plan or were otherwise involuntarily discharged
will not be considered for rehire. An applicant or employee who is terminated for violating policy or who resigned in lieu of
termination from employment due to a policy violation will be ineligible for rehire. This is meant to be a summary and not an
exhaustive list. At the discretion of the Company, there may be other non-discriminatory factors taken into consideration in
determining that an employee is ineligible for rehire.

SCCY EMPLOYEE HANDBOOK PUB. 6/2022 REV 3.00 PAGE 87


Benefits
Rehired employees will be considered a “new hire” and will not be eligible for past service, unless otherwise required by
federal, state, local law or insurance plan prescribed benefits. Rehired employee’s will accrue PTO based on their rehire date.
No other considerations to previous employment will be factored into this calculation.

SCCY EMPLOYEE HANDBOOK PUB. 6/2022 REV 3.00 PAGE 88


ACKNOWLEDGEMENT AND RECEIPT
I acknowledge that I have received and read a copy of the SCCY Industries Employee Handbook. I understand that the Handbook sets forth Company
policies and procedures relating to my employment as well as the duties, responsibilities, and obligations of employment with the Company. I understand that SCCY
Industries has provided me various alternative channels to raise concerns of violations of this handbook and company policies and encourages me to do so
promptly so that SCCY Industries may effectively address such situations, and I understand that nothing herein interferes with any right to report concerns,
make lawful disclosures, or communicate with any governmental authority regarding potential violations of laws or regulations. I agree to abide by and be
bound by the rules, policies and standards set forth in the Employee Handbook.

I acknowledge that, except where required otherwise by applicable state law, my employment with SCCY Industries is at-will, meaning that it is not for a
specified period of time and that the employment relationship may be terminated at any time for any reason, with or without cause or notice, by me or the
Company. I further acknowledge that only, the Founder/CEO or his authorized representative has the authority to enter into an agreement that alters the at-will
relationship. Any such agreement must be in writing and signed by the Founder/CEO or his authorized representative.

I further acknowledge that the Company reserves the right to revise, delete and add to the provisions of the employee handbook and state supplement, but that
all such revisions, deletions or additions must be in writing. No oral statements or representations can change the provisions of the handbook or supplement.
Furthermore, the Company’s policy of at-will employment can only be changed as stated in the prior paragraph.

I understand and acknowledge that nothing in this Employee Handbook or in any other document or policy is intended to prohibit me from reporting concerns
to, filing a charge or complaint with, making lawful disclosures to, providing documents or other information to or participating in an investigation or hearing
conducted by the Equal Employment Opportunity Commission (“EEOC”), National Labor Relations Board (“NLRB”), Securities and Exchange Commission
(“SEC”) or any other federal, state or local agency charged with the enforcement of any laws.

I also understand and acknowledge that nothing about the policies and procedures set forth in this Handbook should be construed to interfere with any
employee rights provided under state or federal law, including Section 7 of the National Labor Relations Act.

I have read and understand the above statements.

EMPLOYEE SIGNATURE

PRINT NAME

DATE

SCCY EMPLOYEE HANDBOOK PUB. 6/2022 REV 3.00 PAGE 89

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