this employee handbook has been tailored expressly for...

9410 Topanga Canyon Blvd., Suite 105Chatsworth, CA 91311-5758

P 818.717.0200 F 818.717.0257www.tscorealestate.com

EMPLOYEE HANDBOOK

http://www.tscorealestate.com/

WELCOME TO THE SIMPSON CO., INC.

Starting a new job is exciting, but at times can be overwhelming. This Employee Handbook has been developed to help you become acquainted with our company and answer many of your initial questions. It provides answers to most of the questions you may have about the company benefit programs, as well as the company policies and procedures we abide by, our responsibilities to you and your responsibilities to The Simpson Co., Inc. (“TSCo”)

From time to time, the information included in our Employee Handbook may change. Every effort will be made to keep you informed through suitable lines of communication, including postings on the company bulletin boards and/or notices sent directly to you in-house via electronic mail.

As an employee of TSCo, the importance of your contribution cannot be overstated. Our goal is to provide the finest-quality services to customers and to do this more efficiently and economically than our competitors. By satisfying our customer’s needs, they will continue to do business with us and will recommend us to others.

You are an important part of this process for your work directly influences our company's reputation.

We are glad you have joined us, and we hope you will find your work to be both challenging and rewarding.

Sincerely,

F. DEAN SIMPSONPRESIDENT

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RECEIPT OF EMPLOYEE HANDBOOK AND EMPLOYMENT-AT-WILL STATEMENT

This is to acknowledge that I have received a copy of The Simpson Co., Inc. (“TSCo”) Employee Handbook and understand that it sets forth the terms and conditions of my employment as well as the duties, responsibilities and obligations of my employment with the company. I understand and agree that it is my responsibility to read the Employee Handbook and to abide by the rules, policies and standards set forth in the Employee Handbook.

Please read the following statements and sign below to indicate your receipt and acknowledgement of TSCo Employee Handbook:

I also acknowledge that my employment with TSCo is not for a specified period of time and can be terminated at any time for any reason, with or without cause or notice, by me or by the company.

I acknowledge that no oral or written statements or representations regarding my employment can alter the foregoing. I also acknowledge that no manager or employee has the authority to enter into an employment agreement - express or implied - providing for employment other than at-will.

I also acknowledge that, except for the policy of at-will employment, the company 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 and must be signed by the president of the company. No oral statements or representations can change the provisions of this Employee Handbook.

I also acknowledge that, except for the policy of at-will employment, terms and conditions of employment with the company may be modified at the sole discretion of the company, with or without cause or notice, at any time. No implied contract concerning any employment-related decision, term of employment or condition of employment can be established by any other statement, conduct, policy or practice.

I understand that the foregoing agreement concerning my at-will employment status and the company's right to determine and modify the terms and conditions of employment is the sole and entire agreement between me and TSCo concerning the duration of my employment, the circumstances under which my employment may be terminated and the circumstances under which the terms and conditions of my employment may change. I further understand that

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this agreement supersedes all prior agreements, understandings and representations concerning my employment with the company.

I understand that my signature below indicates that I have read and understand the above statements and have received a copy of the TSCo Employee Handbook.

I acknowledge that the company reserves the right to monitor any type of company telecommunications, video surveillance, computer, or Internet activity and employees should not expect privacy while using work equipment.

If I have questions regarding the content or interpretation of this Employee Handbook, I will bring them to the attention of the Controller or President.

______________________ ______________________Employee’s Printed Name Position

______________________ ______________________Employee’s Signature Date

The signed original copy of this agreement should be given to the Controller – it will be filed in your personnel file.

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TABLE OF CONTENTS

THE WAY WE WORK...................................................................12

A WORD ABOUT THIS HANDBOOK.............................................13

AFFIRMATIVE ACTION & EQUAL EMPLOYMENT.........................15

AMERICANS WITH DISABILITIES ACT..........................................15

OUR EMPLOYEE RELATIONS PHILOSOPHY..................................16

Non-Harassment........................................................................16

Sexual Harassment.....................................................................17

Third-Party Anti-Harassment Policy...........................................17

Responsibility.............................................................................18

Reporting...................................................................................18

PERSONNEL ADMINISTRATION...................................................20

Your Personnel File....................................................................20

Access to Personnel Files...........................................................20

EMPLOYMENT CLASSIFICATIONS................................................21

Introductory Period....................................................................21

Full-Time Employees..................................................................22

Part-Time Salaried Employees....................................................22

Part-Time Hourly Employees......................................................22

Temporary Employees...............................................................23

“Non-Exempt” and “Exempt” Employees...................................23

NEW EMPLOYEE ORIENTATION..................................................24

Absence or Lateness...................................................................24

Anniversary Date........................................................................25

Attendance.................................................................................25

At Will Employment...................................................................25

Business Hours/Work Week.......................................................25

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Confidential Information............................................................26

Credit Investigation....................................................................27

Customer Relations....................................................................27

Disciplinary Actions....................................................................27

Dismissal....................................................................................28

Driver's License & Driving Record..............................................28

Equal Employment Opportunity.................................................28

Former Employees.....................................................................29

Immigration Reform and Control Act (I-9)..................................29

Lunch Breaks..............................................................................29

Lunch Room Facility...................................................................30

Open Door Policy.......................................................................30

Outside Employment.................................................................30

Proof of U.S. Citizenship and/or Right to Work..........................31

Reinstatement of Benefits (Bridging).........................................31

Rest Breaks.................................................................................31

Standards of Conduct.................................................................32

Suggestions and Ideas................................................................32

COMPENSATION & PERFORMANCE............................................34

WAGE & SALARY POLICIES..........................................................35

Computing Pay...........................................................................35

Deductions from Paycheck (Mandatory)....................................35

Direct Deposit............................................................................36

Error in Pay.................................................................................36

Job Descriptions.........................................................................36

Overtime Pay..............................................................................37

Pay Cycle (24 pay periods per year)...........................................37

Performance Reviews................................................................37

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Wage Assignments (Garnishments)...........................................38

YOUR BENEFITS..........................................................................40

Employee Benefit Program........................................................41

Paid Leaves of Absence..............................................................41

Holiday Bonus............................................................................42

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

Recognized Holidays..................................................................42

Holiday - Policies........................................................................43

Paid Time Off..............................................................................43

Paid Time Off – Policies..............................................................44

Paid Sick Leave – Temporary Employees....................................45

401K Safe Harbor Plan................................................................46

LEAVES.......................................................................................48

Personal Leave of Absence.........................................................48

Funeral (Bereavement) Leave....................................................48

Rehabilitation Leave...................................................................49

Voting Leave...............................................................................49

Jury Duty....................................................................................50

School Visitation.........................................................................50

Domestic Violence Leave...........................................................50

Pregnancy Leaves Of Absence....................................................51

Occupational Injury or Illness.....................................................52

Employee Status & Benefits during Leave of Absence...............52

Returning from a Leave Of Absence...........................................52

Accepting Other Employment/Going into Business While On Leave 53

GROUP INSURANCE COVERAGE..................................................54

Group Health and Dental Insurance...........................................54

Eligibility Requirements for Group Insurance Benefit................54

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Termination of Insurance...........................................................55

Cal-Cobra....................................................................................55

Section 125 Plan.........................................................................56

State Disability Insurance...........................................................57

Occupational Injury/Illness.........................................................57Who Is Covered?...................................................................57What Is Covered?..................................................................57When Am I Covered?............................................................58What Are The Benefits?........................................................58How Do I Get The Benefits?..................................................58How Much Are The Cash Payments?....................................59

Unemployment Insurance..........................................................59

ON THE JOB...............................................................................62

Care of Equipment.....................................................................63

Cellular Telephones....................................................................63

Changes in Personal Data...........................................................64

Company Meetings....................................................................64

Computer Software (Unauthorized Copying).............................64

Conflict of Interest/Code of Ethics.............................................65

Corporate Vehicles.....................................................................65

Customer and Public Relations...................................................66

Dress Code / Personal Appearance............................................66

Electronic Mail Monitoring.........................................................67

Entry After-Hours.......................................................................68

Exit Interviews............................................................................68

Expense Reimbursement...........................................................68

First Aid......................................................................................69

Housekeeping............................................................................69

If You Must Leave Us..................................................................69

In An Emergency........................................................................70

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Internet Usage...........................................................................71

On Call........................................................................................71

Outside Activities.......................................................................71

Parking Lot.................................................................................72

Personal Hygiene.......................................................................72

Personal Phone Calls & Mail.......................................................72

Personal Property......................................................................73

Personal Use of Company Property...........................................73

Protecting Company Information...............................................73

Reference Checks.......................................................................73

Return of Company Property.....................................................74

Safety Rules................................................................................74

Safety Rules When Operating Machines & Equipment..............75

Security......................................................................................75

Smoking.....................................................................................76

Solicitation and Distribution.......................................................76

Suggestions and Ideas................................................................76

Theft...........................................................................................76

Violations of Policies..................................................................77

Voice Mail Monitoring................................................................78

SAFETY IN THE WORKPLACE.......................................................80

Each Employee's Responsibility..................................................81

Workplace Violence...................................................................81

Substance Abuse........................................................................82

NON-DISCLOSURE AGREEMENT..................................................84

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THE WAY WE WORK

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A WORD ABOUT THIS HANDBOOK

This Employee Handbook contains information about the employment policies and practices of the company. We expect each employee to read this Employee Handbook carefully, as it is a valuable reference for understanding your job and the company. The policies outlined in this Employee Handbook should be regarded as management guidelines only, which in a developing business will require changes from time to time. The company retains the right to make decisions involving employment as needed in order to conduct its work in a manner that is beneficial to the employees and the company. This Employee Handbook supersedes and replaces any and all prior Employee Handbooks and inconsistent verbal or written policy statements. Except for the policy of at-will employment, which can only be changed by the president of the company in writing, the company 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 and must be signed by the president of the company. No oral statements, representations, or promise by a supervisor or manager may be interpreted as a change in policy nor will it constitute an agreement with an employee. No one other than the President of TSCo may alter or modify provisions of this Employee Handbook.

The provisions of this Employee Handbook are not intended to create contractual obligations with respect to any matters it covers. Nor is this Employee Handbook intended to create a contract guaranteeing that you will be employed for any specific time period.

OUR COMPANY IS AN AT-WILL EMPLOYER. THIS MEANS THAT REGARDLESS OF ANY PROVISION IN THIS EMPLOYEE HANDBOOK, EITHER YOU OR THE COMPANY MAY TERMINATE THE EMPLOYMENT RELATIONSHIP AT ANY TIME, FOR ANY REASON, WITH OR WITHOUT CAUSE OR NOTICE. NOTHING IN THIS EMPLOYEE HANDBOOK OR IN ANY DOCUMENT OR STATEMENT, WRITTEN OR ORAL, SHALL LIMIT THE RIGHT TO TERMINATE EMPLOYMENT-AT-WILL. NO OFFICER, EMPLOYEE OR REPRESENTATIVE OF THE COMPANY IS AUTHORIZED TO ENTER INTO AN AGREEMENT - EXPRESS OR IMPLIED – WITH ANY EMPLOYEE FOR EMPLOYMENT OTHER THAN AT-WILL, UNLESS THOSE AGREEMENTS ARE IN A WRITTEN CONTRACT SIGNED BY THE PRESIDENT OF THE COMPANY. THE TERMS AND CONDITIONS OF EMPLOYMENT MAY BE ALTERED AT ANY TIME WITHIN THE SOLE DISCRETION OF MANAGEMENT.

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This Employee Handbook refers to current benefit plans maintained by the company. Refer to the actual plan documents and summary plan descriptions if you have specific questions regarding the benefit plans. Those documents are controlling.

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AFFIRMATIVE ACTION & EQUAL EMPLOYMENT

TSCo has been and will continue to be an equal opportunity employer. To assure full implementation of this equal employment policy, we will take steps to assure that:

a. Persons are recruited, hired, assigned and promoted without regard to race, religion, color, national origin, citizenship, sex, veteran status, age, disability or any other protected personal characteristics.

b. Similarly, all other personnel actions, such as compensation, benefits, transfers, layoffs and recall from layoffs, access to training, education, tuition assistance and social recreation programs are administered without regard to race, religion, color, veteran status, national origin, citizenship, sex, age, disability or any other protected personal characteristics.

You may discuss equal employment opportunity related questions with the Controller or any other member of management.

AMERICANS WITH DISABILITIES ACT

Our company is committed to providing equal employment opportunities to otherwise qualified individuals with disabilities, which may include providing reasonable accommodation where appropriate. In general, it is your responsibility to notify the Controller of the need for an accommodation. Upon doing so, the Controller may ask you for your input or the type of accommodation you believe may be necessary or the functional limitations caused by your disability. Also, when appropriate, we may need your permission to obtain additional information from your physician or other medical or rehabilitation professionals.

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OUR EMPLOYEE RELATIONS PHILOSOPHY

We are committed to providing the best possible climate for maximum development and goal achievement for all employees. Our practice is to treat each employee as an individual. We seek to develop a spirit of teamwork; individuals working together to attain a common goal.

In order to maintain an atmosphere where these goals can be accomplished, we provide a comfortable and progressive workplace. Most importantly, we have a workplace where communication is open and problems can be discussed and resolved in a mutually respectful atmosphere. We take into account individual circumstances and the individual employee.

We firmly believe that with direct communication, we can continue to resolve any difficulties that may arise and develop a mutually beneficial relationship.

Non-Harassment

We prohibit harassment of one employee by another employee, supervisor or third party for any reason including, but not limited to: veteran status, race, color, religion, sex, national origin, age, physical or mental disability, or any other protected characteristic. Harassment of third parties by our employees is also prohibited.

In addition to the above, race; religious creed; color; national origin; ancestry; physical disability; mental disability; medical condition, including genetic characteristics; marital status; sex; pregnancy, childbirth or related medical conditions; sexual orientation and age are protected classes in California.

The purpose of this policy is not to regulate the personal morality of employees. It is to assure that in the workplace, no employee harasses another for any reason. While it is not easy to define precisely what harassment is, it includes: slurs, epithets, threats, derogatory comments or visual depictions, unwelcome jokes and teasing.

Any employee who feels that he or she is a victim of such harassment should immediately report the matter to the Controller or any other member of management. The company will investigate all such reports as confidentially as possible. Adverse action will not be taken against

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an employee because he or she, in good faith, reports or participates in the investigation of a violation of this policy. Violations of this policy are not permitted and may result in disciplinary action, up to and including discharge.

Sexual Harassment

Sexual harassment of one employee by another employee, supervisor or third party is against company policy and is unlawful under state and federal law.

We firmly prohibit sexual harassment of any employee by another employee, supervisor or third party. Harassment of third parties by our employees is also prohibited. The purpose of this policy is not to regulate the morality of employees. It is to assure that in the workplace, no employee is subject to sexual harassment. While it is not easy to define precisely what sexual harassment is, it includes: unwelcome sexual advances, requests for sexual favors and/or verbal or physical conduct of a sexual nature including, but not limited to: sexually-related drawings, pictures, jokes, teasing, uninvited touching or other sexually-related comments.

Sexual harassment of an employee will not be tolerated. Violations of this policy may result in disciplinary action, up to and including discharge. There will be no adverse action taken against employees who, in good faith, report violations of this policy or participate in the investigation of such violations.

Third-Party Anti-Harassment Policy

The Company is committed to providing a work environment that encourages mutual respect and is free of unlawful harassment. The Company strongly condemns any form of unlawful employment-related harassment. Company policy prohibits employees from, among other things, engaging in unlawful harassment of third parties, including customers, clients, vendors, contractors and persons working or visiting on the company’s premises.

Prohibited unlawful harassment includes, but is not limited to, the following: Any harassment or the use by anyone in the Company’s employ of any derogatory epithet (whether verbal, written or gestural) based on race, religious creed, color, age, sex, gender, gender identity, physical or mental disability, national origin, ancestry, medical condition, marital status, sexual orientation, or any other consideration made unlawful by federal, state or local laws; or sexual harassment,

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including (but not limited to) unwanted sexual advances, visual, verbal or physical conduct of a sexual nature, and gender-based sexually offensive conduct against a person of the same or opposite sex as the harasser when (1) submission to the conduct is made explicitly or implicitly a term or condition of doing business with the Company, (2) submission to or rejection of the conduct by an individual is used for business decisions affecting an individual, or (3) such conduct has the purpose or effect of unreasonably interfering with the third party’s work performance or that of creating an intimidating, hostile or offensive environment.

An employee who believes that this policy is being violated, with respect to third parties as referenced above, should report that belief to his or her supervisor or management immediately, either in writing or personally.

Upon notice of an employee's concern about the possible harassment of third parties, the Company will respond appropriately, will not retaliate against the employee for filing a harassment complaint, and will not knowingly permit retaliation by management or the employee’s coworkers.

Any employee violating this policy will be subject to disciplinary action up to and including termination of employment.

Responsibility

As an employee of TSCo, you are responsible for keeping our work environment free of harassment. Any employee, who becomes aware of an incident of harassment, whether by witnessing the incident or being told of it, must report it to the President or the Controller with whom you feel comfortable. When TSCo becomes aware that harassment might exist, it is obligated by law to take prompt and appropriate action, whether or not the victim wants the company to do so.

Reporting

If you feel that you have experienced harassment, report the incident immediately to the President or the Controller with whom you feel comfortable. Appropriate investigation and disciplinary action will be taken. All reports will be promptly investigated with due regard for the privacy of everyone involved.

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TSCo accepts no liability for harassment of one employee by another employee. The individual who makes unwelcome advances, threatens or in any way harasses another employee is personally liable for such actions and their consequences. TSCo will not provide legal, financial or any other assistance to an individual accused of harassment if a legal complaint is filed.

Any employee who feels that he or she is a victim of sexual harassment should immediately report such actions in accordance with the following procedure. All complaints will be promptly and thoroughly investigated.

Any employee, who believes that he or she is a victim of sexual harassment or retaliated against for complaining of sexual harassment, should report the act immediately to the Controller or President. If you prefer not to discuss the matter with the Controller or the President, you may contact any other member of management.

The company will investigate every reported incident immediately. Any employee, supervisor or agent of the company who has been found to have violated this policy may be subject to appropriate disciplinary action, up to and including immediate discharge.

The company will conduct all investigations in a discreet manner. The company recognizes that every investigation requires a determination based on all the facts in the matter. We also recognize the serious impact a false accusation can have. We trust that employees will continue to act responsibly.

The reporting employee and any employee participating in any investigation under this policy have the company’s assurance that no reprisals will be taken as a result of a sexual harassment complaint. It is our policy to encourage discussion of the matter, to help protect others from being subjected to similar inappropriate behavior.

The Department of Fair Employment and Housing (DFEH) is the State Agency, which resolves complaints of unlawful discrimination. To contact the DFEH, consult the local telephone directory under State and Government Offices or ask Directory Assistance for the number of DFEH Headquarters in Sacramento.

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PERSONNEL ADMINISTRATION

The task of handling personnel records and related personnel administration functions at TSCo has been assigned to the Controller.

Your Personnel File

Keeping your personnel file up-to-date can be important to you with regard to pay, deductions, benefits and other matters. If you have a change in any of the following items, please be sure to notify the Controller as soon as possible:

Legal NameHome AddressHome Telephone NumberPerson to call in case of emergencyNumber of DependentsMarital StatusStatus of Drivers LicenseMilitary or Draft StatusExemptions on your W-4 Tax Form

Coverage or benefits that you and your family may receive under TSCo benefits package could be negatively affected if the information in your personnel file is incorrect.

Since TSCo refers to your personnel file when we need to make decisions in connection with promotions, transfers, layoffs and recalls, it's to your benefit to be sure your personnel file includes information about completion of educational or training courses, outside civic activities, and areas of interest and skills that may not be part of your current position here.

Access to Personnel Files

Upon request, employees may inspect their own personnel files at a mutually agreeable time, on company premises in the presence of a company official. You will be permitted to see any records regarding your qualification for employment, promotion, wage increases or discipline. Exceptions include records regarding criminal investigation and any letters of reference maintained by the company. You will be allowed to have a copy of any document you have signed relating to your employment. For more information, contact the Controller.

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EMPLOYMENT CLASSIFICATIONS

At the time you are hired, you are classified as either full-time, part-time or temporary and are also told whether you qualify for overtime pay. Unless otherwise specified, the benefits described in this Handbook apply only to full-time employees. All other policies described in this Handbook and communicated by TSCo apply to all employees, with the exception of certain wage, salary and time off limitations applying only to "non-exempt" (see the definition that follows) employees. If you are unsure of which job classification your position fits into, please ask the Controller.

Introductory Period

Your first ninety (90) days of employment at TSCo are considered an Introductory Period, and during that period you will begin to accrue some benefits described in this Handbook unless otherwise restricted by law. This Introductory Period will be a time for getting to know your fellow employees, your supervising manager and the tasks involved in your job position, as well as becoming familiar with TSCo services. Your supervising manager will work closely with you to help you understand the needs and processes of your job.

This Introductory Period is a try-out time for both you, as an employee, and TSCo, as an employer. During this Introductory Period, TSCo will evaluate your suitability for employment, and you can evaluate TSCo as well. At any time during this first ninety (90) days, you may resign without any detriment to your record. If, during this period, your work habits, attitude, attendance or performance do not measure up to our standards, we may release you. If you take approved time off in excess of five workdays during the Introductory Period, the Introductory Period may be extended by that length of time.

At the end of the Introductory Period, your manager will discuss your job performance with you. During the course of the discussion, you are encouraged to give your comments and ideas as well.

Please understand that completion of the Introductory Period does not guarantee continued employment for any specified period of time, nor does it require that an employee be discharged only for "cause."

A former employee who has been rehired after a separation from TSCo of more than one (1) year is considered an introductory employee during their first ninety (90) days following rehire, unless approved by the President of TSCo.

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However, the completion of the introductory period does not guarantee employment for any period of time thereafter.

Full-Time Employees

An employee who has successfully completed the Introductory Period (see the Employment Policies section for definition) of employment and who works at least forty (40) hours per week is considered a full-time employee.

If you were a full-time employee and were laid off, you will be considered a full-time employee upon return to work, provided that you were not on layoff for longer than one (1) year.

If you were a full-time employee and have been on an approved leave of absence, upon return you will be considered a full-time employee, provided you return to work as agreed in the provisions of your leave.

Part-Time Salaried Employees

An employee who works less than 40 hours per workweek and is salaried is considered a part-time salaried employee. Your benefits will be prorated according to the proportion of hours you work per week to a 40-hour per week schedule. The only exception to this is that for purposes of Medical Health Insurance, if provided by Employer, you are considered a full time employee if you are salaried and work 30 or more hours per week.

Part-Time Hourly Employees

An employee who works less than 40 hours in a workweek and is paid on an hourly basis is considered a part-time hourly employee. If you are a part-time hourly employee, please understand that you are not eligible for benefits described in this handbook, except as granted on occasion, or to the extent required by provision of state and federal laws.

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Temporary Employees

From time to time, TSCo may hire employees for specific periods of time or for the completion of a specific project. An employee hired under these conditions will be considered a temporary employee. The job assignment, work schedule and duration of the position will be determined on an individual basis. Normally, a temporary position will not exceed six (6) months in duration, unless specifically extended by a written agreement. If you are a temporary employee, please understand that you are not eligible for benefits described in this Handbook, except as granted on occasion, or to the extent required by provision of state and federal laws. Those temporary employees classified as "non-exempt"(see the definition that follows) who work more than eight (8) hours in one day or more than forty (40) hours during any workweek will receive overtime pay.

In addition to the preceding, employees are also categorized as "exempt" or "non-exempt."

“Non-Exempt” and “Exempt” Employees

At the time you are hired, all employees are classified as either “exempt” or “non-exempt”. This is necessary because, by law, employees in certain types of jobs are entitled to overtime pay for hours worked in excess of eight (8) hours per day or forty (40) hours per work week. These employees are referred to as “non-exempt” in this Handbook. This means that they are not exempt from (and therefore should receive) overtime pay.

NON-EXEMPT EMPLOYEES are entitled to overtime pay as required by applicable federal and state law.

EXEMPT EMPLOYEES are managers, executives, supervisors, professional staff, administrative staff, technical staff, owners, and others whose duties and responsibilities allow them to be “exempt” from overtime pay provisions as provided by the Federal Fair Labor Standards Act (FLSA) and any applicable state laws. Pursuant to applicable federal and state laws, exempt employees are not entitled to overtime pay.

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NEW EMPLOYEE ORIENTATION

Upon joining our company, you were given this copy of our Employee Handbook. After reading this Employee Handbook please sign the receipt page and return it to the Controller. You will be asked to complete personnel, payroll and benefit forms.

If you lose your Employee Handbook or if it becomes damaged in any way, please notify the Controller as soon as possible to obtain a replacement copy. You are required to return this Employee Handbook upon termination of your employment.

One of the first things you should do is carefully read this handbook. It is designed to answer many of your questions about the practices and policies of TSCo, what you can expect from the company, and what the company expects from you.

The Controller is responsible for the operations of your department. He or she is a good source of information about the company and your job.

Absence or Lateness

From time to time, it may be necessary for you to be absent from work. TSCo is aware that emergencies, illnesses, or pressing personal business that cannot be scheduled outside your work hours may arise. Paid Time Off (PTO) days have been provided for this purpose.

If you are unable to report to work, or if you will arrive late, please contact the Controller immediately. Give him or her as much time as possible to arrange for someone else to cover your position until you arrive. If you know in advance that you will need to be absent, you are required to request this time off directly from the Controller via email.

When you call in to inform TSCo of an unexpected absence or late arrival, ask for the Controller or President directly, whoever is available. For late arrivals, please indicate when you expect to arrive for work. Notifying the receptionist or a fellow-employee is not sufficient. If you are unable to call in yourself because of an illness, emergency or for some other reason, be sure to have someone call on your behalf. If the Controller or President is not available when you call, you may leave the information in their voice mail system or via email.

Absence from work for three (3) consecutive days without notifying the Controller or President will be considered grounds for dismissal.

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On your first day back to work, you are required to submit an Absentee/Tardy Form via email if you are absent or tardy. These records will be kept in your employee file and will be used to track utilized vacation and or sick/personal days. Be aware that excessive absenteeism, lateness or leaving early may lead to disciplinary action, including possible dismissal.

Anniversary Date

The first day you report to work will be recorded in company records as your "official" anniversary date. This date may be used to calculate many different company benefits.

Attendance

Attendance and punctuality are important factors for your success within our company. We work as a team and this requires that each person be in the right place at the right time.

You are expected to be at your work station and ready to work at the beginning of your assigned daily work hours, and you are expected to remain at your work station until the end of your assigned work hours, except for approved breaks and lunch. If you have to leave the building except for approved breaks or lunch, please let your supervising manager or Controller know where you are going and how long you expect to be gone.

Be aware that "excessive" time off could lead to disciplinary action.Note: See "Absence or Lateness" later on in this section for further information.

At Will Employment

All employment and compensation with TSCo is "at will" in that both can be terminated with or without cause, and with or without notice, at any time, at the option of either TSCo or yourself, except as otherwise provided by law.

Business Hours/Work Week

Our regular operating hours are 8:30 A.M. to 5:00 P.M. Monday through Friday.

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Your particular hours of work and the scheduling of your lunch period will be determined and assigned by the Controller. Most employees are assigned to work a forty (40) hour work week. You are required to take a one (1) hour unpaid lunch period daily after a continuous five (5) hours of work in any one day; please understand that you may not "work through lunch" in order to arrive late or to leave early or to work extra time unless arranged with and approved by the Controller.

Confidential Information

Our customers and suppliers entrust TSCo with important information relating to their businesses. The nature of this relationship requires maintenance of confidentiality. In safeguarding the information received, TSCo earns the respect and further trust of our clients, tenants, and vendors.

Your employment with TSCo assumes an obligation to maintain confidentiality, even after you leave our employ.

Any violation of confidentiality seriously injures TSCo reputation and effectiveness. Therefore, please do not discuss TSCo business with anyone who does not work for us, and never discuss business transactions with anyone who does not have a direct association with the transaction. Even casual remarks can be misinterpreted and repeated, so develop the personal discipline necessary to maintain confidentiality. If you hear, see or become aware of anyone else breaking this trust, consider what they might do with information they get from you.

If you are questioned by someone outside the company or your department and you are concerned about the appropriateness of giving them certain information, remember that you are not required to answer, and that we do not wish you to do so. Instead, as politely as possible, refer the request to the Controller or to the President.

No one is permitted to remove or make copies of any of the TSCo or its client’s records, reports or documents without prior approval from the Controller or President.

Because of its seriousness, disclosure of confidential information could lead to dismissal.

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Credit Investigation

Following the requirements imposed by the Federal-Truth-In-Lending and the Fair Credit Reporting Acts, TSCo conducts a pre-employment credit check on all applicants. Your employment with us may be conditional upon our review of the information in the credit check. TSCo reserves the right to conduct this credit check at any time after you have been employed. Remember, you have certain legal rights to discover and to dispute or explain any information prepared by the credit checking company.

Customer Relations

The success of TSCo depends upon the quality of the relationships between TSCo, our employees, our clients, tenants, vendors, and the general public. Our customers' impression of TSCo and their interest and willingness to do business with us is greatly formed by the people who serve them. In a sense, regardless of your position, you are an ambassador of TSCo. The more goodwill you promote, the more our customers will respect and appreciate you, TSCo, and our services.

Here are several things you can do to help give customers a good impression of TSCo:

1. Act competently and deal with customers in a courteous and respectful manner.

2. Communicate pleasantly and respectfully with other employees at all times.

3. Follow up on service requests and questions promptly, provide businesslike replies to inquiries and requests, and perform all duties in an orderly manner.

4. Take great pride in your work and enjoy doing your very best.

5. If any employee receives a complaint from a customer, they must notify management immediately.

These are the building blocks for your and TSCo continued success. Thank you for adding your support.

Disciplinary Actions

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Unacceptable behavior which does not lead to immediate dismissal may be dealt with in the following manner:

Written warnings will include the reasons for the supervising manager's dissatisfaction and any supporting evidence. You will have an opportunity to defend your actions and rebut the opinion of your supervising manager at the time the warning is issued. Disciplinary actions may also include fines, suspensions or other measures deemed appropriate to the circumstances.

All pertinent facts will be carefully reviewed, and the employee will be given a full opportunity to explain his or her conduct before any decision is reached.

Dismissal

Employment and compensation with TSCo is "at will" in that they can be terminated with or without cause, and with or without notice, at any time, at the option of either TSCo or yourself, except as otherwise provided by law.

If your performance is unsatisfactory due to lack of ability, failure to abide by TSCo rules or failure to fulfill the requirements of your job, you will be notified of the problem. If satisfactory change does not occur, you may be dismissed. Some incidents may result in immediate dismissal.

Driver's License & Driving Record

Employees whose work requires operation of a motor vehicle must present and maintain a valid driver's license and a driving record acceptable to our insurer. You will be asked to submit a copy of your driving record to TSCo from time to time. Any changes in your driving record must be reported to the personnel department immediately. Failure to do so may result in disciplinary action, including possible dismissal.

Note: See "Corporate Vehicles" in the "On the Job" section of this Handbook for further information.

Equal Employment Opportunity

TSCo provides equal employment opportunity for everyone consistent with federal and state laws regardless of age, sex, color, race, creed, national origin, religious persuasion, marital status, political belief,

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sexual preference, or disability that does not prohibit performance of essential job functions. In addition, laws regarding veterans' status are observed. This is reflected in all TSCo practices and policies regarding hiring, training, promotions, transfers, rates of pay, layoff, and other forms of compensation. All matters relating to employment are based upon ability to perform the job, as well as dependability and reliability once hired.

Note: Throughout this Employee Handbook, masculine pronouns such as he, his, or him shall be construed so as to include both sexes.

Former Employees

Depending on the circumstances, TSCo may consider a former employee for re-employment. Such applicants are subject to TSCo usual pre-employment procedures. To be considered, an applicant must have been in good standing at the time of their previous termination of employment with TSCo and must have provided at least two weeks advance notice of their intention to terminate their employment with TSCo.

Immigration Reform and Control Act (I-9)

In compliance with the federal Immigration Reform and Control Act of 1986 (IRCA), as amended, our company is committed to employing only individuals who are authorized to work in the United States.

Each new employee, as a condition of employment, must complete the Employment Eligibility Verification Form I-9 and present documentation establishing identity and employment eligibility.

If an employee is authorized to work in this country for a limited time period, the individual will be required to submit proof of renewed employment eligibility prior to expiration of that period to remain employed by the company.

Lunch Breaks

If you work longer than five (5) continuous hours, you are required to take a one-hour unpaid lunch period. The time when lunch periods are scheduled varies among departments, depending on the needs of each department. All lunch breaks must be complete no later than 2:30 pm. The Controller will give you your lunch period schedule.

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You are expected to take your full allotted time for lunch. You are requested not to perform any work during your regularly scheduled lunch period, unless specifically requested to do so by your supervising manager. In that event, your lunch will be rescheduled.

It is important to return to work on time at the end of your lunch period as it will impact our general operations.

Lunch Room Facility

For your convenience and comfort, TSCo provides a lunch room equipped with seating, microwave oven and a refrigerator for employees who want to bring their lunch from home. This area is for everyone's use. It is your responsibility to do your share in keeping this facility clean and sanitary. Please clean up after yourself.

Please remember to use containers with reliable seals and label your food with your name and date. The refrigerator is cleaned out every Friday. Anything left in the refrigerator after closing time will be thrown away.

Open Door Policy

The Company’s "open-door" policy encourages employees to discuss any work-related problems or issues without the need for formality and to interact with their supervisors, personnel representatives, or with higher management, and attempt to resolve issues. Employees should be informed of the existence of the policy and practice and are encouraged to use the process for resolving issues. In circumstances where employees feel that personality conflicts or other issues would prevent the candid discussion and resolution of issues, employees have the option of bypassing their supervisors and going to other management resources or Personnel to work to resolve issues. Employees have the responsibility of actively communicating whenever they have problems that need to be resolved or concerns that need to be addressed.

Outside Employment

What you do on your free time is your own business. However, if you are employed by TSCo in a full-time position, TSCo will expect that your position here is your primary employment. Any outside activity must not interfere with your ability to properly perform your job duties at TSCo.

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If you are thinking of taking on a second job, it would be wise to notify the Controller immediately. He or she will thoroughly discuss this opportunity with you to make sure that it will not interfere with your job at TSCo nor pose a conflict of interest.

Proof of U.S. Citizenship and/or Right to Work

In compliance with the federal Immigration Reform and Control Act of 1986 (IRCA), as amended, our company is committed to employing only individuals who are authorized to work in the United States.

Each new employee, as a condition of employment, must complete the Employment Eligibility Verification Form I-9 and present documentation establishing identity and employment eligibility.

If an employee is authorized to work in this country for a limited time period, the individual will be required to submit proof of renewed employment eligibility prior to expiration of that period to remain employed by the company.

Reinstatement of Benefits (Bridging)

In the event you return to work for TSCo, regardless of the length of your previous employment and length of time since you terminated your employment with TSCo, your benefits shall accrue as if you were a new / first-time employee unless arranged with or agreed upon with the President. Rest Breaks

Employees will receive one, ten-minute paid break for every four hours worked. Normally these rest breaks will be scheduled in mid-morning and mid-afternoon. These will be determined by your supervising manager. If you work in a department where breaks are not directly assigned, please coordinate with your co-workers to maintain adequate coverage at all times. Always be sure to return to work on time at the end of any break.

In the unlikely event of an emergency or unusual condition, your supervising manager may ask you to change or postpone your break in order to finish a particular project.

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Standards of Conduct

Whenever people gather together to achieve goals, some rules of conduct are needed to help everyone work together efficiently, effectively, and harmoniously. Some people have problems with "rules" and "authority figures," and past experience may have justified these thoughts and feelings; however, at TSCo, we hold ourselves to a high standard of quality where the rules and authority figures simply assure that quality is maintained.

By accepting employment with us, you have a responsibility to TSCo and to your fellow employees to adhere to certain rules of behavior and conduct. The purpose of these rules is not to restrict your rights, but rather to be certain that you understand what conduct is expected and necessary. When each person is aware that he or she can fully depend upon fellow workers to follow the rules of conduct, then our organization will be a better place to work for everyone.

Suggestions and Ideas

We are always interested in your constructive ideas and suggestions for improving our operations. Your suggestions should be submitted in writing to the Controller or any member of management.

After we investigate your suggestion, you will be notified whether it is feasible to be put into practice.

Your suggestions and comments on any subject are important, and we encourage you to take every opportunity to discuss them with us. Your job will not be adversely affected in any way because you choose to use this procedure.

If at any time you do not feel comfortable speaking with your supervising manager or the next level of management, discuss your concern with any other member of management with whom you feel comfortable.

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COMPENSATION & PERFORMANCE

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WAGE & SALARY POLICIES

TSCo has developed policies to insure wages and salaries comparable to those of other employees with similar jobs at TSCo or in our industry. Our wage and salary policy is designed to attract and retain the best-qualified people available.

To carry out this policy, we periodically compare our wage and salary policy with community rates for similar positions using appropriate published information from sources like statewide business organizations, local chambers of commerce, state and national organizations, various management reports, and various local, state and federal agencies.

You are employed by TSCo and will be carried directly on our payroll. No person may be paid directly out of petty cash or any other such fund for work performed. The only exception to this policy is where a contract relationship exists with a bona fide contractor.

Computing Pay

Should you be one of our "salaried" employees whose pay is not based on an hourly rate, there may be times when it is necessary to compensate you for some daily or hourly pay. When this is necessary, TSCo will compute your time on the basis of an eight (8) hour workday, a forty (40) hour work week. a fifty-two (52) week work year, and a twelve (12) month work year.

Non-Exempt employees must record their hours on time sheets and give them to their supervising manager or Controller two days prior to the pay period end day. All employees subject to this policy are required to accurately record all time worked.

For payroll purposes, the workweek starts on Monday and ends on Sunday.

Deductions from Paycheck (Mandatory)

TSCo is required by law to make certain deductions from your paycheck each pay period. Such deductions typically include federal and state taxes and Social Security (FICA) taxes. Depending on the state in which you are employed and the benefits you choose, there may be additional deductions. All deductions and the amount of the

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deductions are listed on your pay stub. These deductions are totaled each year for you on your Form W-2, Wage and Tax Statement.

Any change in name, address, telephone number, marital status or number of exemptions must be reported to the Controller immediately, to ensure proper credit for tax purposes.

Any other mandatory deductions to be made from your paycheck, such as court-ordered attachments, will be explained whenever TSCo is ordered to make such deductions.

If you have any questions, please see the controller.

Note: See "Wage Assignments (Garnishments)" later on in this section for further information.

Direct Deposit

You have the option of receiving your pay in a payroll check or having your pay deposited into your checking or savings bank account through our direct deposit program. Contact the Controller for details and the necessary authorization forms.

Error in Pay

Every effort is made to avoid errors in your paycheck. If you believe an error has been made, tell the Controller immediately. He or she will take the necessary steps to research the problem and to assure that any necessary correction is made properly and promptly.

Job Descriptions

TSCo maintains a job description for each position. The job description outlines the essential duties and responsibilities of the position. When the duties and/or responsibilities of a position change, the job description is revised to reflect those changes. If you have any questions or wish to obtain a copy of your position's job description, please see the Controller.

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Overtime Pay

There may be times when you will need to work overtime so that we may meet the needs of our customers. Non-exempt employees must have all overtime approved in advance by the Controller or President.

Generally, unless an alternate workweek is in effect or state law dictates otherwise, non-exempt, non-agricultural workers will be paid at a rate of time and one-half their regular hourly rate for: (1) hours worked in excess of eight hours in a day; (2) hours worked in excess of 40 hours in a week not compensated as daily overtime; and (3) for the first eight hours of work on the seventh day of work in a single workweek; and at a rate of double their regular hourly rate for: (1) hours worked in excess of 12 hours in a day; and (2) hours worked in excess of eight hours on a seventh day of work in a single workweek. Only actual hours worked count toward computing weekly overtime. If you have any questions concerning overtime pay, check with the Controller.

Pay Cycle (24 pay periods per year)

You will be paid semi-monthly on the 15th of the month and the last day of the month for the periods which have ended on the same days. When our payday is a holiday, you normally will be paid on the last working day before the holiday. If our payday is a Saturday or a Sunday, you normally will be paid on Friday.

Changes will be made and announced in advance whenever TSCo holidays or closings interfere with the normal payday.

Performance Reviews

Your performance is important to our company. Once each year, your managing supervisor will review your job progress within our company and help you to set new job performance plans.

New employees will generally be reviewed at the end of their introductory period.

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Wage Assignments (Garnishments)

We hope you will manage your financial affairs so that we will not be obligated to execute any court-ordered wage assignment or garnishment against your wages. However, whenever court-ordered deductions are to be taken from your paycheck, you will be notified.

According to the Federal Wage Garnishment Act, three (3) or more garnishments may be cause for dismissal.

Note: See "Deductions from Paycheck (Mandatory)" earlier in this section for further information.

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YOUR BENEFITS

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Employee Benefit Program

TSCo has developed a comprehensive set of employee benefit programs to supplement our employees' regular wages. Our benefits represent a hidden value of additional income to our employees.

This Employee Handbook describes the current benefit plans maintained by TSCo. Refer to the actual plan documents and summary plan descriptions if you have specific questions regarding the benefit plan. Those documents are controlling.

TSCo reserves the right to modify its benefits at any time. We will keep you informed of any changes.

Employees should reference either current plan documents or Human Resources for benefit options.

Paid Leaves of Absence

Time off for any reason during a working day will count against your allotted PTO days, as appropriate, in hourly increments. Once you have used all of your earned PTO days, the time off work will be without, unless specifically excepted as described later in this Handbook.

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Holiday Bonus

Historically, TSCo has given some type of extra compensation around the Holiday Season. There has been no format or policy as to the amount for each employee. Therefore, to avoid any misunderstandings or bad feelings, TSCo will be using the following criteria based on the length of employment in determining the “Holiday Bonus”.

Employment less than or equal to five (5) years = one (1) week salary

Employment greater than five (5) years = two (2) weeks salary

This “Holiday Bonus” is not part of any compensation package offered nor has it or will it be promised. Should the company make a financial decision that no “Holiday Bonus” will be distributed, such will be the case.

Holidays

Only full-time and part-time salaried employees are eligible for holiday pay.

Recognized Holidays

The following holidays are recognized by TSCo as paid holidays:

New Year's DayMemorial DayFourth of JulyLabor DayThanksgiving DayThe Friday following Thanksgiving DayChristmas Day

If one of the above holidays falls on Saturday, it normally is observed on the preceding Friday. If one falls on Sunday, it normally is observed on the following Monday. Eligible employees receive a paid holiday only if the holiday falls on a day they are normally scheduled to work.

Exempt employees will receive holiday pay in compliance with state and federal wage and hour laws. Part-time, salaried employees are eligible for holiday pay in proportion to the number of hours they normally are scheduled to work.

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Non-exempt regular employees must work their scheduled work day before and after the holiday in order to be paid for the holiday, unless they are absent with prior permission from the Controller.

Holiday - Policies

You may take time off to observe other religious holidays. If available, a full day of earned but unused Paid Time Off may be used for this purpose, otherwise the time off is without pay. You must notify the Controller at least ten business days in advance in order to apply it against PTO days.

We schedule all national holidays on the day designated by common business practice.

You are not eligible to receive holiday pay when you are on a leave of absence.

Paid Time Off

Effective January 1, 2012, your Annual Vacation Days and Personal/Sick Days Accrual have been combined into “Paid Time Off or PTO”. Effective January 1, 2012, PTO days accrue subject to the same polices we currently have in effect. PTO will be in lieu of Vacation and Personal/Sick Days that you have been allotted under prior policies.

Paid Time Off (PTO) is a fringe benefit offered by The Simpson Company. Because it is a fringe benefit, TSCo may regulate when you can take the time off. You may use PTO for Vacation, Personal Business, Illness, Injury, Jury Duty, Unpaid Bereavement Leave, Medical and Dental Appointments. PTO is in addition to the Paid Bereavement Leave (see Bereavement Leave policy modified 12/2008) and TSCo recognized Holidays.

Earned PTO is considered wages and is earned or accrued as labor/service is performed. Earned or Accrued PTO cannot be forfeited and is earned on a day-by-day basis but posted semi-monthly.

Full-time employees are eligible to accrue PTO for each calendar month of service immediately upon hire.

Regular part-time, salaried employees receive PTO in proportion to the number of hours they are scheduled to work as a percentage of a full 40-hour work week.

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Temporary employees, contract employees and interns are not eligible to accrue PTO.

PTO accrual rate is based on your length of employment as follows: Upon hire , you accrue 10.66 hours for each month worked.

For reference purposes only, this is equivalent to 16 days or 128 hours of PTO per year. Accrual ceases once you reach 160 hours. When you drop below the maximum, your normal accrual rate resumes.

After 5 full anniversary years (a full 12 months is equal to one anniversary year), you accrue 14.00 hours for each month worked, up to a maximum of 168 hours of PTO. Accrual ceases once you reach 210 hours. When you drop below the maximum, your normal accrual rate resumes.

After 10 full anniversary years (a full 12 months is equal to one anniversary year), you accrue 17.33 hours for each month worked, up to a maximum of 208 hours of PTO. Accrual ceases once you reach 260 hours. When you drop below the maximum, your normal accrual rate resumes.

If your hire date is within the first through the fifteenth of the month, you will accrue vacation for that entire month. If your hire date is within the sixteenth through the end of the month, you will start to accrue vacation as of the middle of the month in which you are hired.

Paid Time Off – Policies

Every effort will be made to grant you your PTO at the time you desire. PTO requests must be submitted to the Controller via Email at least two (2) weeks in advance prior to entering it in the Office Vacation Calendar unless the PTO is used for legitimate, unexpected illness or emergencies. TSCo appreciates as much notice as possible when you know you expect to miss work for a scheduled absence. PTO requests are granted, taking into account the operations and work flow of the employer and its clients.

Employees who are out on a leave of absence do not accrue PTO time while they are on their leave.

PTO is accrued daily in hourly increments but posted per semi-monthly pay period. You may not take less than one- hour PTO at a time. PTO taken will be subtracted from the employee’s accrued time bank in one

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hour increments. Subject to prior approval and existing planned time off by other employees, you may request to use advance PTO up to a maximum of 40 hours (hours not yet earned) beyond the hours you have accrued or earned as of the date your requested time off begins. Advance PTO for salaried part time workers will be pro-rated based on the number of hours you work in a 40 hour work week.

If you need to be absent from work unexpectedly, you should call the office and inform the Controller before the scheduled start of your workday, if possible. The Controller must also be contacted on each additional day of an unexpected absence.

To schedule planned PTO, you should first ask for advance approval from your supervisor. Each request will be reviewed based on a number of factors, including our business needs and staffing requirements.

Time taken off work by eligible employees beyond their currently accrued and unused PTO and without prior approval for an ‘advance PTO use’ as described in the preceding paragraphs will be deducted from their paycheck.

Upon termination, eligible employees are paid for accrued but unused PTO..

Upon your first day of return after taking PTO, employees are required to submit an “Absentee Slip” electronically to the Controller to document PTO taken.

Paid Sick Leave – Temporary Employees

Temporary employees accrue 24 hours of sick time upon hire, and are eligible to use this sick time on their 90th day of employment, provided they have worked in California for 30 or more days. Every year thereafter, temporary employees will receive 24 hours of paid sick leave on their anniversary date.

Unused sick leave does not carry over into the next year. However, as stated above, every temporary employee will accrue 24 hours (or three days) on their anniversary date of each year.

Permitted Uses

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Temporary Employees are allowed to use the 24 hours of paid sick time per year on the employee's oral or written request for the following reasons:

For his or her own qualifying need, or for that of a "family member," for:

Diagnosis, care, or treatment of an existing health condition; or

Preventative care.

Temporary Employees can also use additional sick time if: The temporary employee is a victim of domestic violence,

sexual assault, or stalking.

Temporary employees must use sick leave in at least two (2) hour increments.

Cash-Out

As per California law, the Company will not cash out temporary employee's accrued, but unused, paid sick time at the end of employment.

Employee Notice

We will provide sick leave upon an employee's oral request. However, if the need for sick time is foreseeable, you must provide a reasonable advance notification. If the sick time is unforeseeable, an employee must provide the Company with notice of the need to use sick time as soon as practicable. At this time, the Company will not be asking for supporting documentation unless sick leave is in association with an extended leave of absence or a work injury. However, we reserve the right to revise this policy as business needs and regulations change.

401K Safe Harbor Plan

Our company offers eligible employees the option of investing in a tax-deferred 401K Retirement Account (401K). This plan is intended to be used in combination with your Social Security benefits and personal resources to provide you with supplemental income upon retirement. Full-time and Part-Time Salaried Employees are eligible to participate in the company sponsored 401K plan immediately upon hire. Please

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obtain a Summary Plan Description (SPD) and enrollment package from the Controller.

If you have any questions regarding this plan, see the Controller.

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LEAVES

Personal Leave of Absence

Occasions may arise when an employee may have to be away from work for an extended period of time for reasons not covered by the foregoing policies relating to pregnancy, family care, serious illness, occupational injury or illness or military service. In such instances, the Company may, at its sole discretion, grant full-time employees who have completed one year of employment a personal leave of absence without pay. Requests for personal leave will be considered on a case by case basis, taking into account the employee's length of service, performance, responsibility level, the reason for the request, the Company's ability to obtain a satisfactory replacement and other business considerations. Requests for a leave of absence must be submitted in writing to the Controller or President.

Leaves may not exceed ninety (90) days during which time no benefits will continue to accrue, subject to applicable federal and state law.

If the employee is currently a member of the company group insurance plans, the company will continue to provide medical insurance, dental insurance (if applicable) and vision care insurance coverage (if applicable) for employees on an authorized leave of absence, up to a maximum of one month. After this time, you will be responsible for paying your portion of the monthly premiums.

When an employee is placed on a personal leave of absence, an effort will be made to hold the employee's position open for the period of the approved leave. However, due to business needs, there will be times when positions cannot be held open. Accordingly, it is not possible to guarantee reinstatement.

Funeral (Bereavement) Leave

You are entitled to take up to two (2) workdays with pay to attend the funeral and take care of personal matters related to the death of a member of your immediate family (A parent, spouse, spouse's parent, child, spouse's child by a former marriage, brother or sister.)

In addition to the two (2) workdays with pay for immediate family members as defined above, employees accumulate an additional

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Longevity Bereavement Leave benefit. AFTER each five (5) years of continuous employment, Employees accumulate one (1) additional day of paid Bereavement Leave (i.e. after 15 years of continuous employment, an employee is eligible for three (3) additional days of paid funeral bereavement leave).

One (1) day of paid funeral leave will be granted in the case of the death of a grandparent, your spouse's grandparent or sibling, or any member of your extended family living in your home.

With your supervising manager’s approval, you may take up to one full day without pay to attend funerals of other relatives and friends. If you prefer, a day of earned vacation may be used for this purpose.

Paid time under this policy is given over and above any time allowed and earned under our PTO policy.

An excused absence for family death may not be retroactive, postponed or split.

Rehabilitation Leave

Our company is committed to providing assistance to our employees. Any employee who wishes to voluntarily enter and participate in alcohol and/or drug rehabilitation program may be granted a reasonable accommodation. This accommodation may include time off without pay and/or an adjusted work schedule, provided that the accommodation does not impose an undue hardship on the company. In general, it is your responsibility to notify the Controller of the need for accommodation.

The company shall take reasonable steps to safeguard the privacy of any employee as to the fact that he or she has enrolled in an alcohol or drug rehabilitation program.

This policy does not prevent the company from refusing to hire or disciplining, up to and including discharge, an employee who, because of the current use of alcohol or drugs, is unable to perform his or her duties or cannot perform the duties in a manner which would not endanger his or her health or safety or the health or safety of others.

Voting Leave

Our company believes that every employee should have the opportunity to vote in any state or federal election, general primary or

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special primary. Any employee who does not have sufficient time outside of working hours to vote in a statewide election may request up to two paid hours off in order to vote.

Notify the Controller of the need for voting leave as soon as possible. When you return from voting leave, you must present a voter's receipt to the Controller as soon as possible; otherwise, time off will be taken against accrued but unused sick/personal days.

Jury Duty

It is your civic duty as a citizen to report for jury duty whenever called. If you are called for jury duty, we will permit you to take the necessary time off.

You must notify the Controller within forty-eight (48) hours of receipt of the jury summons. The time off work for jury duty will be time without pay. You may utilize either accrued but unused sick/personal or vacation days. We expect you to return to your job if you are excused from jury duty during your regular working hours.

School Visitation

If an employee who is the parent or guardian of a child who is suspended is required to appear at the child's school, the employee may take time off without pay if they provide reasonable advance notice to the controller of the need for time off.Employees, who are the parent, guardian, or grandparent having custody of children in grades K-12, or of children attending a licensed daycare facility, are allowed up to 40 hours of leave without pay per calendar year to participate in activities of their child's school or daycare facility. This leave should not exceed eight hours in any calendar month. Requests for such leave must be made in advance of the planned absence and employees must provide documentation from the school or daycare facility as proof of their participation in school or daycare activities.

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Domestic Violence Leave

The company will not discriminate against employees who are victims of domestic violence for taking time off from work to obtain or attempt to obtain any relief, including but not limited to, a temporary restraining order, restraining order, or other injunctive relief to help ensure the health, safety, or welfare of a domestic violence victim or his or her child.

The company will also not discriminate against an employee who is a victim of domestic violence for taking time off from work to seek medical attention for injuries caused by such domestic violence, to obtain services from a domestic violence program, to obtain psychological counseling related to the domestic violence, or to participate in actions to increase safety from future domestic violence, including temporary or permanent relocation.

Affected employees must give the company reasonable notice that they are required to be absent for a purpose stated above, except for unscheduled or emergency court appearances or other emergency circumstances. In such a case, the company will take no action against affected employees if, within a reasonable time after the appearance, they provide the company with documentary evidence that their absence was required for any of the above reasons.

This leave will be unpaid. However, affected employees may use accrued but unused vacation days or sick/personal days.

Pregnancy Leaves Of Absence

The Company will grant an unpaid pregnancy leave of absence to any employee who is temporarily disabled by pregnancy, childbirth or a related medical condition. Pregnancy leaves of absence will be granted on the basis of a physician's written statement. The maximum duration of any pregnancy leave is four (4) months.

An employee who plans to take a pregnancy leave must notify the Company when the leave will commence, its estimated duration and the date of her expected return to work. Prior to returning to work, an employee must provide written verification from her physician of her ability to return to work. Upon submission of such verification, the employee will be reinstated to work subject to business requirements as provided by law.

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Any accrued but unused sick leave will be substituted for unpaid pregnancy disability leave. Employees may elect to substitute any other accrued but unused paid time off for unpaid pregnancy disability leave.

Upon the return from a covered pregnancy disability leave, you will be restored to the same position, or subject to business requirements that may exist, an available similar position. You must give the company at least 30 days' advance notice if your need for pregnancy-related disability leave or transfer is foreseeable; otherwise, please give the company notice of your need for leave or transfer as soon as is practicable.

Occupational Injury or Illness

A leave of absence will be granted upon written request to any employee who is disabled due to a work-related injury or illness. Subject to legitimate business requirements, such a leave of absence will be extended for the duration of the work-related disability. Before returning to work, the employee must submit a physician's verification specifying when the employee is able to return to work and perform regular job duties. Upon submission of such verification, the employee will be reinstated to work subject to business requirements as provided by law.

Employee Status & Benefits during Leave of Absence

An employee who is granted a leave of absence may utilize any available accrued but unused PTO during the period of the leave. Except during a military leave, the Company will maintain group medical coverage for 1 month. Thereafter, an employee may be eligible to continue such coverage on a self-pay basis as provided by law.

However, an employee will not accrue vacation, sick or holiday time during a leave of absence. Moreover, except where required by law, leave of absence time will not be counted in determining an employee's longevity for any purpose (for example, the employee's five-year anniversary date will shift by the amount of time the employee is on leave).

Returning from a Leave Of Absence

You must notify TSCo at least fifteen (15) days prior to your expected return date that you intend to return from a leave of absence. When you return, you will be placed on your regular job if such position remains

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and is available. If TSCo has had to eliminate or fill your position while you were on leave, you will be assigned to an open position for which you are properly qualified. If no such position exists, you will be placed on layoff status.

If you don't return from your leave of absence on the day indicated in your original application or in any approved extension, or within three (3) days of release by your doctor if you have been on a disability leave of absence, you will be considered to have voluntarily resigned from employment with TSCo as of the day on which you began your leave of absence.

If you have been on a disability leave of absence, you will be required to submit a statement from your doctor indicating that you are fit to return to your normal duties.

Accepting Other Employment/Going into Business While On Leave

If you accept any employment or go into business while on a leave of absence from TSCo, you will be considered to have voluntarily resigned from employment with TSCo as of the day on which you began your leave of absence.

Insurance Premium Payment during Absence Leaves

While you are on any type of unpaid leave of absence from TSCo, you will be responsible for paying the total premiums for your coverage and that of your dependents while on leave except as previously stated. Failure to do so may result in loss of coverage and possible refusal by the insurance carrier to allow your coverage to be reinstated.

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GROUP INSURANCE COVERAGE

Group Health and Dental Insurance

TSCo is interested in the health and well-being of both you and your family. A group health and dental insurance program is available for you and your family. As of 12/1/2014, TSCo has contracted with California Choice for group health and dental insurance (HMO/PPO). These group plans are subject to change annually and the terms and conditions specified in the plan are subject to review and acceptance by management each plan anniversary date.

A booklet containing the details of the plan may be obtained from the Controller. Information and enrollment forms may be obtained from the Controller.

Eligible full-time and part-time salaried employees may enroll in either a single or a family contract after completing their introductory period.

Information and enrollment forms may be obtained from the Controller.

Eligibility Requirements for Group Insurance Benefit

Group Medical, Dental, and Vision Insurance is offered to employees based on the following eligibility provisions:

After completion of thirty (30) days of continuous employment you become eligible for coverage. At that time, you may choose to accept the insurance coverage, or not.

Eligible full-time and part-time, salaried employees may enroll in either a single or a family contract after completing their introductory period.

Must live within the coverage area of the health plan.

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To assist you with the cost of this insurance, our company pays a portion of the employee’s health plan premium. You are responsible for paying the balance through payroll deduction. The portion of the employee’s health plan premium is subject to annual review. You pay 100% of the premiums for insurance coverage of your eligible dependents through payroll deduction.

The Affordable Care Act (ACA) definition of eligible dependent children, for small group plans, is as follows: Unmarried natural, legally adopted child or stepchild of subscriber or enrolled spouse to age 19. To his/her 24th birthday if fulltime student (twelve or more credits) at an accredited college, university, vocational or technical school and fully dependent upon the employee for support. You must notify each provider with the required documentation should you continue coverage for any eligible dependent children over age 19.

If employee is currently covered under another plan via their spouse and does not desire the company’s offered group plan, a declination of the health and/or dental benefit statement must be signed and acknowledged by employee.

Upon termination, you may be entitled to continuation or conversion of the group medical insurance plan in accordance with the terms of the policy and/or applicable state and federal law. For more information, contact the Controller.

Termination of Insurance

Your insurance will terminate when the group plan policy terminates, when you fail to make an agreed contribution to premium when due, when you cease to be eligible for coverage under the terms of our group plan program, or when you cease to be employed as a full-time or part-time salaried employee eligible for the insurance. TSCo may, by continuing to pay the premium, keep your insurance in effect for a brief period if you cease to be an eligible employee for any reason other than resignation, dismissal, or failure to meet the terms of eligibility of our group insurance program.

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Cal-Cobra

You and your covered dependents will have the opportunity to continue medical (and/or dental)* benefits for a period of up to 18 months under the provisions of the Consolidated Omnibus Budget Reconciliation Act (COBRA) when group medical (and/or dental)* coverage for you and your covered dependents would otherwise end due to your death or because:

- your employment terminates, for a reason other than gross misconduct;

- your employment status changes due to a reduction in hours;- your child ceases to be a "dependent child" under the terms of

the medical (and/or dental)* plan;- you become divorced or legally separated; or- you become entitled to Medicare.

In the event of divorce, legal separation, or a child's loss of dependent status, you or a family member must notify the Plan Administrator within 60 days of the occurrence of the event.

The Plan Administrator will notify the individuals eligible for continuation coverage of their right to elect COBRA continuation coverage.

*COBRA applies to dental and vision care insurance only if dental and vision care insurance are offered.

Section 125 Plan

Our company offers a pretax contribution option for employees. This employee benefit is known as a Section 125 plan.

A Section 125 plan is a benefit plan that allows you to make contributions toward premiums for medical insurance and dental insurance on a "before tax", rather than an "after tax" basis. Your premium contributions are deducted from your gross pay before income tax and Social Security are calculated.

To participate in this plan, complete an election form and return it to the Controller. Your gross pay is reduced by an amount equal to your cost of medical insurance and dental insurance.

You cannot make any changes to your medical insurance and dental insurance coverage until the next open enrollment date, unless your family status changes or you become eligible for a special enrollment

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period due to a loss of coverage. Family status changes include marriage, divorce, death of a spouse or child, birth or adoption of a child or termination of employment of your spouse. A change in election due to a change in family status is effective the following month.

State Disability Insurance

All employees are eligible for disability insurance benefits when an illness, injury or pregnancy-related disability prevents them from working and they meet all the eligibility requirements.

The benefits are calculated as a percentage of your salary, up to a weekly maximum as specified by law, for a duration of up to 52 weeks.

Provide written notice of disability, including a doctor's certificate stating the nature of the disability and your expected date of return to work.

You are responsible for filing your claim and other forms promptly and accurately with the Employment Development Department. A claim form may be obtained from any office of the Employment Development Department by telephone, letter or in person. The cost of this insurance is fully paid by the employee.

Occupational Injury/Illness

On-the-job injuries are covered by our Workers' Compensation insurance policy. This insurance is provided at no cost to you. If you are injured on the job, no matter how slightly, report the incident immediately to the Controller. Consistent with applicable state law, failure to report an injury within a reasonable period of time could jeopardize your claim. We ask for your assistance in alerting management to any condition which could lead or contribute to an employee accident. Additionally, the company will attempt to provide a reasonable accommodation which is medically necessary, feasible and does not impose an undue hardship on the company as prescribed by applicable federal, state or local law.

Who Is Covered?

Every TSCo employee is protected by Workers' Compensation.

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What Is Covered?

Any injury is covered if it's caused by your job, not just serious accidents, but even first-aid type injuries. Illnesses may also be covered, if they're related to your job. For example, common colds and flu are not covered, but if you caught tuberculosis while working at a TB hospital, that's covered. The main question is if the injury or illness is the result of the performance of your job.

When Am I Covered?

Coverage begins the first minute you're on the job and continues anytime you're working for TSCo. You don't have to work a certain length of time, and there's no need to earn any minimum amount of wages before you're protected.

What Are The Benefits?

California law guarantees you three kinds of workers' compensation benefits:

• Medical care to take care of the injury, including not only doctor bills, but also medicines, hospital costs, fees for lab tests, x-rays, crutches and so forth. There's no deductible and all costs are paid directly by our workers' Compensation Insurance carrier. If you do receive a bill, be sure to submit it to the Controller for payment through our insurance carrier.

• Rehabilitation services necessary to return to work. Sometimes this is just an extension of medical treatment (for example, physical therapy to strengthen muscles). However, if the injury keeps you from returning to your usual job, you may qualify for vocational rehabilitation and retraining, too. Again, all costs are paid directly by TSCo through our Workers' Compensation Insurance carrier.

• Cash payments for lost wages. The most common kind of payments, for "temporary disability," will be made for as long as the doctor says you're unable to work. Additional cash payments may be made after you're able to work if there's a permanent handicap, for example, the amputation of a finger or loss of sight. If the injury results in death, payments will be paid to surviving dependents.

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How Do I Get The Benefits?

All injuries, no matter how slight, must be reported immediately to your manager to assure consideration under Workers' Compensation Insurance, should complications develop later. Your supervising manager will see that you receive medical attention.

Just tell your supervising manager what, where, when, and how it happened, enough information so that he or she can arrange medical treatment and complete the necessary forms. You will be provided with an Employee’s Claim for Workers Compensation Benefits (Form 3301) to be returned to the Controller immediately.

In an emergency, you may go directly to one of the medical facilities nearby. Later, you may be required to furnish your manager with written statements regarding the on-the-job accident so that we may accurately document the incident, and so you may receive all the benefits to which you are entitled. (Failure to do this could result in loss of benefits.)

Prompt reporting is the key. Benefits are automatic, but nothing can happen until your employer knows about the injury. Insure your right to benefits by reporting every injury, no matter how slight. Even a cut finger can be disabling if an infection develops.

How Much Are The Cash Payments?

Payments consist of two-thirds of your average weekly wage, up to a maximum amount set by the State Legislature. The amount of the payments, and when and how they'll be paid, are regulated by State law. Only the State Legislature can change the law.

Workers' Compensation payments are tax free. There are no deductions for state or federal taxes or Social Security.

Unemployment Insurance

Upon separation from employment, you may be entitled to state and federal unemployment insurance.

TSCo pays a percentage of its payroll to the Unemployment Compensation Fund according to TSCo employment history. If you become unemployed, you may be eligible for unemployment compensation, under certain conditions, for a limited period of time.

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Unemployment compensation provides temporary income for workers who have lost their jobs. To be eligible you must have earned a certain amount and be willing and able to work.

You should apply for benefits through your local State Unemployment Office as soon as possible.

Information about unemployment insurance can be obtained from the Controller.

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ON THE JOB

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Care of Equipment

You are expected to demonstrate proper care when using the company's property and equipment. No property may be removed from the premises without the proper authorization of management. If you lose, break or damage any property, report it to the Controller at once.

Cellular Telephones

Employees in certain positions are issued company cellular telephones so they may maintain contact with clients, vendors, and co-workers when they are out of the office on business.

Employees are encouraged to take appropriate safety precautions when using their cellular telephone. The use of handheld cellular telephones while driving is prohibited. Employees are expected to comply with applicable state laws regarding the use of cellular telephones.

Company cellular telephones are for business purposes. Although the occasional use of your company cellular telephone for personal calls may be necessary, incoming and outgoing personal calls should be kept to a minimum. Employees must reimburse the company in accordance with applicable state and federal wage and hour laws for any personal telephone calls made or received on a company cellular telephone.

The use of cellular telephones is not a work requirement for most employees. Employees who are not issued a company cellular telephone will not be reimbursed for the use of their personal cellular telephones and are expected to make business calls from the office.

Employees are expected to demonstrate proper care of their cellular telephones. If you lose, break or damage your company cellular telephone, report it to the Controller at once. You may be required to reimburse the company for any lost cellular phones or other electronic equipment. All cellular telephones issued by the company must be returned upon leaving our company or upon transferring to a position that does not require a company cellular telephone.

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Changes in Personal Data

To aid you and/or your family in matters of personal emergency, we need to maintain up-to-date information.

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

Company Meetings

On occasion, we may request that you attend a company sponsored meeting. If this is scheduled during your regular working hours, your attendance is required. If it is held during your non-working hours and you decide to attend, you will be paid for the time you spend traveling to and from the meeting as well as for time spent at the meeting, but only if you are one of our "non-exempt" employees. (If you are qualified for overtime pay by virtue of working more than forty hours that same work week, then you will receive your overtime rate.)

If you are a "non-exempt" employee, you are under no obligation to attend a company meeting which is held outside of regular working hours. No one in management is permitted to exert any degree of pressure on you to attend.

Computer Software (Unauthorized Copying)

TSCo does not condone the illegal duplication of software. The copyright law is clear. The copyright holder is given certain exclusive rights, including the right to make and distribute copies. Title 17 of the U.S. Code states that "it is illegal to make or distribute copies of copyrighted material without authorization" (Section 106). The only exception is the users' right to make a backup copy for archival purposes (Section 117).

The law protects the exclusive rights of the copyright holder and does not give users the right to copy software unless a backup copy is not provided by the manufacturer. Unauthorized duplication of software is a Federal crime. Penalties include fines of as much as $100,000, and jail terms of up to five years.

Even the users of unlawful copies suffer from their own illegal actions. They receive no documentation, no customer support and no information about product updates.

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1. TSCo licenses the use of computer software from a variety of outside companies. TSCo does not own this software or its related documentation and, unless authorized by the software manufacturer, does not have the right to reproduce it.

2. With regard to use on local area networks or on multiple machines, TSCo employees shall use the software only in accordance with the license agreement.

3. TSCo employees learning of any misuse of software or related documentation within the company shall notify the Controller or President.

4. According to the U.S. Copyright Law, illegal reproduction of software can be subject to civil damages and criminal penalties, including fines and imprisonment. TSCo employees who make, acquire or use unauthorized copies of computer software shall be disciplined as appropriate under the circumstances. Such discipline may include dismissal.

Conflict of Interest/Code of Ethics

A company's reputation for integrity is its most valuable asset and is directly related to the conduct of its officers and other employees. Therefore, employees must never use their positions with the company, or any of its clients, for private gain, to advance personal interests or to obtain favors or benefits for themselves, members or their families or any other individuals, corporations or business entities.

The company adheres to the highest legal and ethical standards applicable in our business. The company's business is conducted in strict observance of both the letter and spirit of all applicable laws and the integrity of each employee is of utmost importance.

Employees of the company shall conduct their personal affairs in such a fashion that their duties and responsibilities to the company are not jeopardized and/or legal questions do not arise with respect to their association or work with the company.

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Corporate Vehicles

Operators of corporate vehicles are responsible for the safe operation and cleanliness of the vehicle. Accidents involving a corporate vehicle must be reported to the Controller or President immediately. Employees are responsible for any moving and parking violations and fines which may result when operating a corporate vehicle.

Corporate vehicles should be operated by the employee only. Corporate vehicles may only be used for job-related travel. Smoking is prohibited in corporate vehicles.

The use of seat belts is mandatory for operators and passengers of corporate vehicles. The use of cellular phones should not be utilized while driving. Employees should pull off the road and park the vehicle safely before using cellular phones.

Customer and Public Relations

Our company's reputation is built on excellent service and quality work. To maintain this reputation requires the active participation of every employee.

The opinions and attitudes that customers have toward our company may be determined for a long period of time by the actions of one employee. It is sometimes easy to take a customer for granted, but if we do we run the risk of losing not only that customer, but his or her associates, friends or family who may also be customers or prospective customers.

Each employee must be sensitive to the importance of providing courteous treatment in all working relationships.

Dress Code / Personal Appearance

Please understand that you are expected to dress and groom yourself in accordance with accepted social and business standards, particularly if your job involves dealing with clients or visitors in person. Our customers' satisfaction represents the most important and challenging aspect of our business. Whether or not your job responsibilities place you in direct client contact, you represent the company with your appearance as well as your actions. The properly attired individual helps to create a favorable image for the company, to the public and fellow employees.

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Personal appearance should be a matter of concern for each employee; in general, we have adopted a “Business Casual” dress code. If the Controller feels your attire is out of place, you may be asked to leave your workplace until you are properly attired. You will not be paid for the time you are off the job for this purpose. The Controller or President has the sole authorization to determine an appropriate dress code, and anyone who violates this standard will be subject to appropriate disciplinary action.

Here is a list of a few acceptable and non-acceptable items for business-casual dress days:

Acceptable Non-AcceptableShirts with collars T-shirts & tank topsCasual slacks SweatshirtsSkorts SweatpantsLong dresses & skirts JeansCasual slip-on shoes Shorts

Mini-SkirtsFlip-FlopsAthletic shoes

Please remember that shorts, bare midriff tops, tattered, torn and threadbare clothes are always inappropriate for work.

Since the company maintains a business casual environment, all employees should use discretion in wearing attire that is appropriate for the office and client interaction.

Every Friday, jeans and tennis shoes are acceptable on casual dress day, but you are still expected to dress in good taste.

Electronic Mail Monitoring

We recognize your need to be able to communicate efficiently with fellow employees and customers. Therefore, we have installed an internal electronic mail (e-mail) system to facilitate the transmittal of business-related information within the company and with our customers.

The e-mail system is intended for business use only. The use of the company's e-mail system to solicit fellow employees or distribute non job-related information to fellow employees is strictly prohibited.

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Our company’s policies against sexual and other types of harassment apply fully to the e-mail system. Violations of those policies are not permitted and may result in disciplinary action, up to and including discharge. Therefore, employees are also prohibited from the display or transmission of sexually-explicit images, messages, ethnic slurs, racial epithets or anything which could be construed as harassment or disparaging to others.

Employees shall not use unauthorized codes or passwords to gain access to others' files.

All e-mail passwords must be made available to the company at all times. Please notify the Controller if you need to change your password.

Violation of this policy may result in disciplinary action, up to and including discharge.

For business purposes, management reserves the right to enter, search and/or monitor the private company e-mail system and the files/transmission of any employee without advance notice and consistent with applicable state and federal laws.

Entry After-Hours

You are not allowed to enter TSCo after normal working hours for any reason without the express approval of your supervising manager, Controller or President.

Exit Interviews

In instances where an employee voluntarily leaves our employ, TSCo management would like to discuss your reasons for leaving and any other impressions that you may have about TSCo. If you decide to leave, you will be asked to grant us the privilege of an exit interview. During the exit interview, you can express yourself freely. It is hoped that this exit interview will help us part friends, as well as provide insights into possible improvements. All information will be kept strictly confidential and will in no way affect any reference information that TSCo management will provide another employer about you.

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Expense Reimbursement

You must have the Controller or President’s written authorization (requisition / purchase order, etc.) prior to incurring an expense on behalf of TSCo. To be reimbursed for all authorized expenses, you must submit an expense report / voucher accompanied by receipts and approved by your supervising manager. Please submit your expense report each month, as you incur authorized reimbursable expenses.

First Aid

Federal law ("OSHA") requires that we keep records of all illnesses and accidents which occur during the workday. The California state Workers' Compensation Act also requires that you report any illness or injury on the job, no matter how slight. If you hurt yourself or become ill, please contact your supervising manager for assistance. If you fail to report an injury, you may jeopardize your right to collect workers' compensation payments as well as health benefits. OSHA also provides for your right to know about any health hazards which might be present on the job. Should you have any questions or concerns, contact the Controller for more information.

Housekeeping

Neatness and good housekeeping are signs of efficiency. You are expected to keep your work area neat and orderly at all times, it is a required safety precaution.

Easily accessible trash receptacles and recycling containers are located in the premises. Please put all litter and recyclable materials in the appropriate receptacles and containers. Please don't put cigarettes out on the ground or throw ashes into any container not meant for that purpose. Always be aware of good health and safety standards, including fire and loss prevention.

Please report anything that needs repairing or replacing to the Controller immediately.

If You Must Leave Us

Should you decide to leave your employment with us, we ask that you provide your supervising manager or the Controller with at least two weeks' advance notice. Your thoughtfulness is appreciated and will be

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noted favorably should you ever wish to reapply for employment with the company.

Employees, who are rehired following a break in service other than an approved leave of absence, must serve a new initial introductory period, whether or not such a period was previously completed. Such employees are considered new employees from the effective date of their reemployment for all purposes, including the purposes of measuring benefits.

Our company does not provide a "letter of reference" to former employees. Generally, we will confirm, upon request, our employees' dates of employment, salary history and job title.

All company property, including this Employee Handbook, must be returned upon termination. Otherwise, the company may take further action to recoup any replacement costs and/or seek the return of company property through appropriate legal recourse.

You should notify the company if your address changes during the calendar year in which termination occurs so that your tax information will be sent to the proper address.

In An Emergency

Your managing supervisor or a member of management should be notified immediately when an emergency occurs. Emergencies include all accidents, medical situations, bomb threats, other threats of violence, and the smell of smoke. If your managing supervisor or the Controller is unavailable, contact the nearest company official.

Should an emergency result in the need to communicate information to employees outside of business hours, your managing supervisor or the Controller will contact you. Therefore, it is important that employees keep their personal emergency contact information up to date. Notify the Controller in the event this information changes.

Additionally, the company has established a voicemail system which can be reached at (818) 717-0200. In the case of an emergency, employees may call the system to obtain updated information.

When events warrant an evacuation of the building, you should follow the instructions of your managing supervisor or any other member of management. You should leave the building in a quick and orderly manner. You should assemble at the pre-determined location as

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communicated to you by your supervisor to await further instructions or information.

Please direct any questions you may have about the company’s emergency procedures to the Controller.

Internet Usage

As a growing company, we recognize the need to stay on the cutting edge of technology. This is one of the reasons we allow employees to have access to the Internet.

The Internet is intended for business use only. Use of the Internet for non job-related solicitations including, but not limited to, religious or political causes is strictly prohibited.

Our company’s policies against sexual and other types of harassment apply fully to Internet usage. Violations of those policies are not permitted and may result in disciplinary action, up to and including discharge. Therefore, employees are also prohibited from displaying, transmitting and/or downloading sexually explicit images, messages, ethnic slurs, racial epithets or anything which could be construed as harassment or disparaging to others.

Consistent with applicable federal and state law, the time you spend on the Internet may be tracked through activity logs for business purposes. All abnormal usage will be investigated thoroughly.

Employees learning of any misuse of the Internet shall notify a member of management.

Violation of this policy may result in disciplinary action up to and including discharge.

On Call

It may be necessary for individuals in certain positions to be available by telephone or pager after hours during the week or on the weekend. Employees who are required to be on call will be compensated accordingly in their salary in accordance with applicable state and federal wage and hour laws.

Outside Activities

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No employee may take an outside job, either for pay or as a donation of his or her personal time, with a customer or competitor of TSCo; nor may they do work on their own if it competes in any way with the sales of products or services we provide our customers. If your financial situation requires you to hold a second job, part-time or full-time, or if you intend to engage in a business enterprise of your own, we would like to know about it. Before accepting any outside employment it would be a good idea to discuss the matter with the Controller.

Parking Lot

You are encouraged to use the parking areas designated for our employees. Remember to lock your car every day and park within the specified areas.

Courtesy and common sense in parking will avoid accidents, personal injuries, damage to your vehicle and to the vehicles of other employees. If you should damage another car while parking or leaving, immediately report the incident, along with the license numbers of both vehicles and any other pertinent information you may have, to the Controller. TSCo does not assume any liability for any loss or damages you may sustain.

Personal Hygiene

Maintaining a professional, business-like appearance is very important to the success of our company. Part of the impression you make on others depends on your choice of dress, personal hygiene and courteous behavior. A daily regimen of good grooming and hygiene is expected of everyone. Please ensure that you maintain good personal hygiene habits. While at work, you are required to be clean, dressed appropriately and well groomed.

Personal Phone Calls & Mail

It is important to keep our telephone lines free for client calls. Please keep personal phone calls to a minimum; they must not interfere with your work. You are permitted to make limited local area calls on company telephones for essential personal business during lunch or "break" periods only. The company may ask you to reimburse for any Long Distance/Toll calls made. Please do not abuse this privilege. Emergency calls regarding illness or injury to family members, changed family plans, or calls for similar reasons may be made at any time. Incoming urgent calls will be directed to you.

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Personal cellular telephones must be turned off or set to a silent alert during working hours while on company premises.

Please don't use TSCo as a personal mailing address, and do not put personal mail in the stacks that are to be run through the postage meter. Although the amount may seem small, it is still considered theft.

Personal Property

Due to the strict liability guidelines of our insurance carrier, under no circumstances are you allowed to keep personal equipment or vehicles on TSCo property where damage or fire could result.

Please understand that TSCo cannot assume any responsibility for loss or damage to personal property of any employee. Valuable personal items, such as purses and all other valuables should not be left in areas where theft might occur.

Personal Use of Company Property

In some instances, employees may be allowed to borrow certain TSCo equipment for their own personal use while on our premises. In no instance may this be done off our premises, or without prior management approval. You understand and agree that TSCo is not liable for personal injury incurred during the use of company property for personal projects. As a TSCo employee, you accept full responsibility for any and all liabilities for injuries or losses which occur, or for the malfunction of equipment. You are responsible for returning the equipment or tools in good condition and you agree that you are required to pay for any damages that occur while using the equipment or tools for personal projects.

Protecting Company Information

Protecting our company's information is the responsibility of every employee, and we all share a common interest in making sure it is not improperly or accidentally disclosed. Do not discuss the company's confidential business with anyone who does not work for us.

All telephone calls regarding a current or former employee's position/compensation with our company must be forwarded to the Controller or President.

The company's address shall not be used for the receipt of personal mail.

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Reference Checks

Our company will not honor any oral requests for references. All requests must be in writing and on company letterhead. Generally, we will only confirm our employees' dates of employment, salary history and job title.

No employee, under any circumstances, should provide another individual with information regarding current or former employees of our company. If you receive a request for reference information, please forward it to the Controller.

Return of Company Property

Any property issued to you by TSCo, such as cellular phones, pagers, cameras, other equipment and supplies must be returned to TSCo at the time of your dismissal or resignation, or whenever it is requested by your supervising manager or a member of management.

Safety Rules

Safety is everybody's business. Safety is to be given primary importance in every aspect of planning and performing all TSCo activities. We want to protect you against industrial injury and illness, as well as minimize the potential loss of production.

Please report all injuries (no matter how slight) to your manager immediately, as well as anything that needs repair or is a safety hazard. Below are some general safety rules. Your manager or department head may post other safety procedures in your department or work area:

• Avoid overloading electrical outlets with too many appliances or machines.

• Use flammable items, such as cleaning fluids, with caution.• Walk, don't run.• Report to your manager if you or a co-worker becomes ill or is

injured.• Ask for assistance when lifting heavy objects or moving heavy

furniture.• Smoke only in designated smoking areas.• Keep cabinet doors and file and desk drawers closed when not in

use.• Never empty an ash tray into a waste basket or open receptacle.

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• Sit firmly and squarely in chairs that roll or tilt.• Wear or use appropriate safety equipment as required in your

work.• Avoid "horseplay" or practical jokes.• Keep your work area clean and orderly, and the aisles clear.• Stack materials only to safe heights.• Watch out for the safety of fellow employees.

Remember, failure to adhere to these rules will be considered serious infractions of safety rules and will result in disciplinary actions.

Safety Rules When Operating Machines & Equipment

We will continue to provide a clean, safe and healthy place to work and we will provide the best equipment possible. You are expected to work safely, to observe all safety rules and to keep the premises clean and neat. Remember that carelessly endangering yourself or others may lead to disciplinary action, including possible dismissal.

The Company is committed to providing and maintaining a healthy and safe work environment for all employees. As a result, the Company has implemented an Illness and Injury Prevention Program designed to protect the health and safety of all employees. Every employee will receive health and safety training as part of the Illness and Injury Prevention Program. A copy of the Company's Illness and Injury Prevention Program is kept by the Controller and in available for your review.

Each employee is required to know and comply with the Company's general safety rules and follow safe and healthy work practices at all times. You are required to report immediately any potential health or safety hazards, and all injuries or accidents, to your supervisor or, in the alternative, to the Personnel Director. You may be subject to discipline for engaging in any unsafe or unhealthy work practice.

Security

Maintaining the security of TSCo buildings and vehicles is every employee's responsibility. Develop habits that insure security as a matter of course. For example:

• Always keep cash properly secured. If you are aware that cash is insecurely stored, immediately inform the person responsible.

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• Know the location of all alarms and fire extinguishers, and familiarize yourself with the proper procedure for using them, should the need arise.

• When you leave TSCo premises make sure that all entrances are properly locked and secured.

Smoking

If you smoke, there are a variety of places outside the building for you to enjoy a short break. Please be courteous and concerned about the needs of your fellow employees and others. The wishes and preferences of non-smokers will take precedence over those of employees who smoke. TSCo is a non-smoking office. Please do not smoke inside the premises.

Please remember to conform to our client's smoking policies when working at a client's site.

Solicitation and Distribution

In order to avoid unnecessary annoyances and work interruptions, solicitation by an employee of another employee is prohibited while either person is on working time. Employee distribution of literature, including handbills, in work areas is prohibited at all times.

Trespassing, soliciting or distribution of literature by non-employees on these premises is prohibited at all times.

Suggestions and Ideas

We are always interested in your constructive ideas and suggestions for improving our operations. Your suggestions should be submitted in writing to your supervisor.

After we investigate your suggestion, you will be notified whether it is feasible to be put into practice.

We believe that suggestions indicate initiative. With your approval, we will place the written suggestion in your personnel file and consider it at the time of your performance review.

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Theft

Although taking small items of TSCo property many seem inconsequential, the cumulative effect can be very large. Stealing from the company is like stealing from yourself. Losses from theft immediately affect our ability to increase salaries and can jeopardize the profitability of the company.

Property theft of any type will not be tolerated by TSCo. We consider property theft to be the unauthorized use of company services or facilities or the taking of any company property for personal use. The following list of examples is not all-inclusive, but provides illustrations of several activities which are unacceptable.

1. Use of company copy machines and fax machines for personal use. The office copiers are not provided as a free service to employees. If you wish to use a company copier for personal use, please follow the established procedure for reimbursement of TSCo. Failure to do so is a form of property theft.

2. Use of computers. TSCo personal computers (the personal computers in the office, or laptops made available for work away from the office) are to be used exclusively for business purposes unless you receive permission from the Controller and arrange to reimburse TSCo Permission will be given for the use of personal computers during non-business hours so long as employees record all time, for which they will be charged. Floppy Diskettes or CD’s are not allowed to be inserted into company computers at any time in order to prevent virus inspections.

3. Taking of company property. No item purchased or supplied by TSCo should ever be removed from company premises without express authorization of your immediate manager and the proper paper work associated with the situation. This rule applies to all company property including computers, and even pens and paper. Your supervising manager has been given detailed instructions on the circumstances in which he or she can authorize you to borrow company equipment or to take samples of your work home. A checkout procedure will be used, and if you fail to return any item removed on schedule, the value of the items will be charged against your paycheck and you may be subject to disciplinary action for theft.

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Violations of Policies

You are expected to abide by the policies in this Handbook. Failure to do so will lead to appropriate disciplinary action. A written record of all policy violations is maintained in each individual's personnel file.

Voice Mail Monitoring

We recognize your need to be able to communicate efficiently with fellow employees and clients. Therefore, we have a voice mail system to facilitate the transmittal of business-related information within the company and with our clients.

The voice mail system is intended for business use only. The use of the company's voice mail system to solicit fellow employees or distribute non job-related information to fellow employees is strictly prohibited.

Our company’s policies against sexual and other types of harassment apply fully to the voice mail system. Violations of those policies are not permitted and may result in disciplinary action, up to and including discharge. Therefore, employees are also prohibited from the transmission of sexually-explicit images, messages, ethnic slurs, racial epithets or anything which could be construed as harassment or disparaging to others.

All voice mail passwords must be made available to the company at all times. Please notify the Controller if you need to change your password.

Violation of this policy may result in disciplinary action up to and including discharge.

For business purposes, management reserves the right to enter, search and/or monitor the private company voice mail system and the voice mail of any employee without advance notice and consistent with applicable state and federal laws.

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SAFETY IN THE WORKPLACE

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Each Employee's Responsibility

Safety can only be achieved through teamwork at our company. Each employee, supervisor and manager must practice safety awareness by thinking defensively, anticipating unsafe situations and reporting unsafe conditions immediately. Please observe the following precautions:

1. Notify the Controller of any emergency situation. If you are injured or become sick at work, no matter how slightly, you must inform the Controller immediately.

2. The unauthorized use of alcoholic beverages or illegal substances during working hours will not be tolerated. The possession of alcoholic beverages or illegal substances on the company's property is forbidden.

3. Use, adjust and repair machines and equipment only if you are trained and qualified.

4. Get help when lifting or pushing heavy objects.

5. Understand your job fully and follow instructions. If you are not sure of the safe procedure, don't guess, just ask the Controller.

6. Know the locations, contents and use of first aid and firefighting equipment.

7. Wear personal protective equipment in accordance with the job you are performing.

8. Unauthorized possession, use or sale of weapons, firearms or explosives on work premises is forbidden.

A violation of a safety precaution is in itself an unsafe act. A violation may lead to disciplinary action, up to and including discharge.

Workplace Violence

Violence by an employee or anyone else against an employee, supervisor or member of management will not be tolerated. The purpose of this policy is to minimize the potential risk of personal injuries to employees at work and to reduce the possibility of damage of company property in the event someone, for whatever reason, may be unhappy with a company decision or action by an employee or member of management.

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If you receive or overhear any threatening communications from an employee or outside third party, report it to the Controller at once. Do not engage in either physical or verbal confrontation with a potentially violent individual. If you encounter an individual who is threatening immediate harm to an employee or visitor to our premises, contact an emergency agency (such as 911) immediately.

All reports of work-related threats will be kept confidential to the extent possible, investigated and documented. Employees are expected to report and participate in an investigation of any suspected or actual cases of workplace violence.

Violations of this policy, including your failure to report or fully cooperate in the company's investigation, may result in disciplinary action, up to and including immediate discharge.

Substance Abuse

The company has vital interests in ensuring a safe, healthy and efficient working environment for our employees, their co-workers and the customers we serve. The unlawful or improper presence or use of controlled substances or alcohol in the workplace presents a danger to everyone. For these reasons, we have established as a condition of employment and continued employment with the company the following substance abuse policy.

Employees are prohibited from reporting to work or working while using illegal or unauthorized drugs. Employees are prohibited from reporting to work or working when the employee uses any drugs, except when the use is pursuant to a doctor's orders and the doctor advised the employee that the substance does not adversely affect the employee's ability to safely perform his or her job duties.

In addition, employees are prohibited from engaging in the unlawful or unauthorized manufacture, distribution, sale or possession of illegal drugs and alcohol in the workplace including: on company paid time, on company premises, in company vehicles or while engaged in company activities. Employees are also prohibited from reporting for duty or remaining on duty with any alcohol in their systems. Employees are also prohibited from consuming alcohol during working hours, including meal and break periods.

Your employment or continued employment with the company is conditioned upon your full compliance with the foregoing substance

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abuse policy. Any violation of this policy may result in disciplinary action, up to and including discharge. Furthermore, any employee who violates this policy who is subject to termination may be permitted in lieu of termination, at the company's sole discretion, to participate in and successfully complete an appropriate treatment, counseling or rehabilitation program as recommended by a substance abuse professional as a condition of continued employment and in accordance with applicable federal, state and local laws. The company assures that any information concerning an individual's drug or alcohol use will remain confidential.

Consistent with its fair employment policy, the company maintains a policy of non-discrimination and reasonable accommodation with respect to recovering addicts and alcoholics, and those having a medical history reflecting treatment for substance abuse conditions. We encourage employees to seek assistance before their drug or alcohol use renders them unable to perform their essential job functions or jeopardizes the health and safety of themselves or others. The company will attempt to assist its employees through referrals to rehabilitation, appropriate leaves of absence and other measures consistent with the company's policies and applicable federal, state or local laws.

The company further reserves the right to take any and all appropriate and lawful actions necessary to enforce this substance abuse policy including, but not limited to, the inspection of company issued lockers, desks or other suspected areas of concealment, as well as an employee's personal property when the company has reasonable suspicion to believe that the employee has violated this substance abuse policy.

This policy represents management guidelines only and should not be interpreted as a contract of employment.

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NON-DISCLOSURE AGREEMENTTHE SIMPSON CO., INC.

In consideration of my work with, and/or access to the premises of The Simpson Co., Inc. (“TSCo”), the undersigned agrees that:

1. I acknowledge that during the course of my relationship with TSCo, I may be furnished or otherwise learn information not generally know (to the public or to other persons who can obtain economic value from its disclosure or use) which gives TSCo some competitive or business advantage, or the opportunity of obtaining such an advantage ("confidential information"). Such confidential information may pertain to, among other things, designs, methods, systems, procedures, devices, computer hardware, computer software, computer data bases, marketing plans, sales strategies, customer lists, product sales performance, costs, sales, prices, quotations, bids, operations, employees or representatives of TSCo, as well as any fact with respect to the identities, personnel, projects, needs, policies or practices of past, current or prospective customers or suppliers of TSCo I agree that I will not, at any time, whether during or subsequent to the term of my relationship with TSCo, divulge, disclose or communicate confidential information in any manner or in any extent to any person or entity not expressly authorized by TSCo to receive such information. I understand that all such information is important and unique, and that such information materially affects the goodwill and successful conduct of the business of TSCo.

2. I agree that all equipment, notes, records, lists, files, memoranda, reports, correspondence, written or graphic materials, and other tangible things embodying information affecting or relating to the business of TSCo that are used or prepared by me, and any copy of any portion thereof, shall be and remain the sole property of TSCo. Upon demand or at the termination of my relationship with TSCo, I will immediately deliver to TSCo all such property in my possession, custody or control.

Dated: ______________________________________

Print Employee Name: __________________________

Signed: _____________________________________

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NOTES

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this employee handbook has been tailored expressly for...

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