Paid Time Off Policy

If you move to a job level that makes you eligible for more Managed Time hours than your currentyears of service or current job level, you will begin accruing at the new level the first day of themonth following the Salary Band Level change. For example, if you are a 40-hour work weekemployee with 7 years of service and move from Band C to Band D on April 10, your new accrualrate (+8 hours for the year) will begin on May 1.If you move to a job level that makes you eligible for less Managed Time hours than your currentyears of service or previous job level, the company will not reduce your Managed Time hours.Managed Time hours are accrued by calendar year. If you use all of your Managed Time in theyear that you accrue it, you may not borrow or use Managed Time from the next calendar year. .Eligibility for Managed Time in Year of HireNew Employees are eligible for Managed Time according to this schedule:Eligible Managed Time by Month of Hire for Employees(All Salary Bands)Month of HireAnnualized AccrualJanuary 12/12February 11/12March 10/12April 9/12May 8/12June 7/12July 6/12August 5/12September 4/12October 3/12November 2/12December 1/12If you are hired in April as a full-time employee, you are entitled to 9/12 of the total Managed Timehours you are eligible for during that year. For example, if you are a full-time employee with a 40-hour work week, you are eligible for a total of 136 hours in your first year, so if you are hired inApril you would be eligible for 102 hours (136 hrs. ÷ 12 mos. X 9 mos. = 102 hrs.).If you are hired in April as a part-time employee working a 24-hour work week, you are entitled to9/12 of the total prorated Managed Time hours you are eligible for during that year. For example,if you are a part-time employee with a 24-hour work week, you are eligible for a total of 81.6hours in your first year (136 hrs. ÷ 40 hrs. X 24 hrs. = 81.60 hrs.), so if you are hired in April youwould be eligible for 61.20 hours (81.60 hrs. ÷ 12 mos. X 9 mos. = 61.20 hrs.).If you are a re-hired employee or a temporary/contracted employee hired into a regular statusposition, you will receive Managed Time credit based on years of service as determined by theeligibility requirements of the Credit for Service policy. Your Managed Time hours will be proratedbased upon the "Eligible Managed Time by Month of Hire for Employees" indicated in thechart above.Carry Over of Managed TimeWith your Manager's approval, you are allowed to carry over up to two weeks of accrued butunused Managed Time into the next calendar year. Any eligible carryover time will be updated inHRDirect at the end of January.For LFG internal use only. Rev. 9/8/2014

Managed Time hours are accrued by calendar year. If you take Managed Time beyond what youhave accrued or carried over for the calendar year, and end with a negative balance, you may notborrow against the next calendar year to cover the shortfall.If your job is eliminated and your notice period extends beyond December 31st, you will only beallowed to carry over up to two weeks of accrued but unused Managed Time. Any Managed Timeover the allowable two week carryover maximum will be forfeited.Managed Time Payout at TerminationIf you terminate from the Company, you will be paid for any unused earned Managed Time on aprorated basis. All unused earned Managed Time will be based and calculated on your basesalary as of the date of termination.You earn 1/12 of your Managed Time starting in January and each month thereafter while you arecontinuously employed. You will not be paid for Managed Time that you would have accrued ifyou had continued employment with the Company until the end of the year.If you used paid unearned Managed Time which had not been earned yet for the year, as of yourtermination date, the Company will not deduct the overpayment of Managed Time from your paystatement.For example, if you are in your thirteenth anniversary year and are entitled to 200 hours ofManaged Time, and you also had 40 hours of Managed Time carryover from the previous year, ifyou terminate your employment on April 1st, you will be entitled to 4/12 of the 200 hours of yourManaged Time or 66.75 hours. If you also used 70 hours through April 1st, you will be paid for36.75 hours of Managed Time in your last pay statement.CarryoverManaged Time earned through termination dateSub-TotalManaged Time used through April 1stEmployee will be paid40.00 hours+66.75 hours106.75 hours-70.00 hours36.75 hoursManaged Time and RetirementIf you retire from the Company your Managed Time credits will be based on your retirement date.Any earned, unused Managed Time you have on your retirement date will be paid out asdescribed above in “Managed Time Payout at Termination”. All unused earned Managed Time willbe based and calculated on your base salary as of the date of termination.Managed Time and Job EliminationsOnce you are notified that your job has been eliminated, you will not receive approval to take anyunearned Managed Time between the notification date and your actual job termination date. Ifyou used paid unearned Managed Time which had not been earned yet for the year, as of yourtermination date, the Company will not deduct the overpayment of Managed Time from your pay.If your job is eliminated, your Managed Time credits will be based on your termination date. Whenyou receive your final pay statement from the Company you will be paid for any earned unusedManaged Time on a prorated basis. You will be paid out as described above in “Managed TimeFor LFG internal use only. Rev. 9/8/2014

Payout at Termination”. All unused earned Managed Time will be based and calculated on yourbase salary as of the date of termination.Managed Time and LeavesShort Term Disability (STD)You will be required to use all earned Managed Time for the waiting period for Short TermDisability until your leave is approved. Once your leave is approved, you are not required to useManaged Time since you will be receiving your STD benefit.When you are on an approved STD leave from the Company you will not accrue Managed TimeCredits. When you return to work from STD, you will accrue Managed Time Credits for the timeyou were away from work on STD.If you do not return to work, either voluntarily or because you go on Long Term Disability, yourManaged Time Credits will be based on the start or effective date of your STD. Any earned,unused Managed Time you have on this date will be paid out in the same manner as it is fortermination.Workers' CompensationWhen you are on an approved Workers' Compensation leave from the Company you will notaccrue Managed Time Credits. When you return to work from Workers' Compensation leave, youwill accrue Managed Time Credits for the time you were away from work on Workers'Compensation.If you do not return to work, either voluntarily or because you go on Long Term Disability, yourManaged Time Credits will be based on the start or effective date of your Workers' Compensationleave. Any earned, unused Managed Time you have on this date will be paid out in the samemanner as out as described previously in “Managed Time Payout at Termination”.Long Term Disability (LTD)When you are on an approved LTD leave from the Company you will not accrue Managed TimeCredits. If you do not return to work, any earned, unused Managed Time you have on this datewill be paid out as described previously in “Managed Time Payout at Termination”. All unusedearned Managed Time will be based and calculated on your base salary at that time.Family Medical Leave ActEmployees who are away on an approved leave under FMLA will accrue Managed Time Credits.Personal Leave of Absence (PLA)When you are on an approved PLA from the Company, you will not accrue Managed TimeCredits. When you return to work from PLA, you will start to accrue Managed Time Credits. If youdo not return to work, any earned, unused Managed Time you have on this date will be paid outas described previously in “Managed Time Payout at Termination”.Military Leave of Absence (MLA)You will continue to accrue Managed Time Credits while on Annual Military Training Leave. Thisleave is generally two (2) weeks per year.When you are on an approved Active Duty MLA from the Company you will not accrue ManagedTime Credits. When you return to work from Active Duty MLA, you will only accrue Managed TimeCredits for the first 6 months you were away from work on Active Duty MLA. If you do not returnto work after your Active Duty MLA, your Managed Time Credits will be based on the start orFor LFG internal use only. Rev. 9/8/2014

effective date of your Active Duty MLA. Any earned, unused Managed Time you have on this datewill be paid out as described previously in “Managed Time Payout at Termination”.Managed Time Policy for California-based EmployeesCalifornia-based employees' Managed Time accruals are capped at 200 hours.The PTO Managed Time accrual process is automated within the Time Management system. Thismeans that if you are a California-based employee, you will not accrue (earn) any additionalManaged Time unless your Managed Time bank is reduced below 200 hours. Once you havereduced your accrued hours below 200 hours, you will be able to accrue up to the 200 hourmaximum cap.All earned, unused Managed Time will be carried over for California-based employees. Thismeans that if you carried over 200 or more hours you will not accrue (earn) any new ManagedTime until your accrued balance falls below 200 hours. For example, if you carried over 200 hoursfrom 2011, you did not accrue Managed Time in January 2012. It is important that you work withyour manager to take unused accrued Managed Time prior to year-end, keeping in mind the 200hour cap. Employees are required to promptly record in the Time Management system all PTOhours they have taken. This is so the Time Management system will accurately reflect the amountof PTO time to which you are entitled. The company must have an accurate record regarding anyaccrued unused Managed Time since California employees are allowed to carry all accruedunused Managed Time into the next calendar year.If your job is eliminated and your notice period extends beyond December 31st, your ManagedTime accrual will be capped at 200 hours.Overtime and Paid Time Off (PTO)Managed Time hours are considered hours worked for purposes of overtime calculation. Forexample, if you are a non-exempt employee and have worked 35 hours in one week, but tookeight hours of Managed Time, the additional three hours over your regularly scheduled 40 hourswould be paid at the overtime rate of time and one-half.Holiday Time is considered hours worked for purposes of overtime calculation. For example, ifyou are a non-exempt Employee and have worked 35 hours in one week, and took eight hours ofHoliday time, the three hours over 40 would be paid at the overtime rate of time and one-half.If you are a non-exempt Employee who works an observed holiday then all overtime hours arepaid at 1.5 times your hourly rate even if you do not work 40 hours in the week it is observed.Bereavement Time and Jury Duty or Subpoenaed Witness Time are not considered hoursworked for purposes of overtime calculation.For more information about Overtime, please refer to the Policies and Procedures section ofHRDirect and review the Overtime Policy.Holiday TimeYou may be eligible for a specific number of paid holiday hours based on your individual workschedule. The company will observe the following nine (9) paid holidays:For LFG internal use only. Rev. 9/8/2014

Holidays 2014 Dates Observed 2015 Dates ObservedNew Year's Day Wednesday, January 1 Thursday, January 1Martin Luther King, Jr. Day Monday, January 20 Monday, January 19Presidents' Day Monday, February 17 Monday, February 16Good Friday Friday, April 18 Friday, April 3Memorial Day Monday, May 26 Monday, May 25Independence Day Friday, July 4 Friday, July 3Labor Day Monday, September 1 Monday, September 7Thanksgiving Day Thursday, November 27 Thursday, November 26Christmas Day Thursday, December 25 Friday, December 25The following rules affect Holiday Time:When Independence Day, Christmas Day, or New Year's Day falls on Tuesday orThursday, the Company will be open on Monday and Friday, respectively.When Independence Day, Christmas Day, or New Year's Day falls on Saturday orSunday, the Company will observe the published Company holiday observance schedulefor that year.Full-time and part-time employees on a standard work week schedule will receive thesame number of Holiday hours regardless of their work schedule. For example, if anemployee works Monday-Friday, 8 hours per day, if the holiday falls on any day of theweek, they will receive 8 hours of holiday pay.Full-time and part-time employees on a fixed non-standard work week schedule willreceive Holiday hours based on their regularly scheduled hours. If an employee does notregularly work on the day on which the holiday falls, the employee will not receive pay forthe holiday.For example, if an employee works Tuesday-Friday, 10 hours per day:ooIf the holiday falls on Tuesday, the employee will receive 10 hours of holiday pay.If the holiday falls on Monday, the employee will not receive holiday pay, sinceMonday is not a regularly scheduled work day.To be eligible for Holiday Time, you must be at work or taking pre-approved timeon both the workday immediately before and the workday immediately after theholiday. If your absence is unexcused, you will not be paid for the holiday.Holiday Time cannot be carried over to the next calendar year.If you are a salaried employee and worked on a holiday, you will be able to add this timeworked to your Managed Time balance.If you are a non-exempt employee who works an observed holiday then all hours workedon a company-observed holiday are paid at 1.5 times your hourly rate, even if you do notwork 40 hours in the week it is observed.For LFG internal use only. Rev. 9/8/2014

Bereavement TimeThe Company understands the hardships associated with the loss of a family member.Consequently, the Company provides eligible employees paid bereavement time hours to helphandle obligations without incurring a loss of pay.As a regular full-time or regular part-time employee you may be eligible for up to five regularlyscheduled work days off at your regular base pay rate to handle arrangements to travel or attendfuneral services for:Your spouse;Your child or step-child;Your siblings or step-siblings;Your parents or step-parents;Your legal guardian;Your household members; orAny individual who, although not related to you by blood or marriage, shares with you asignificant emotional relationship and resides as your domestic or common law partner atyour home address.As a regular full-time or regular part-time employee you may be eligible for up to two regularlyscheduled work days off at your regular base pay rate to attend funeral services for:Your grandparent or step-grandparent;Your grand-child;Your parent-in-law;Your sibling-in-law;Your son-in-law;Your daughter-in-law;Your grandparent-in-law;Your aunt;Your uncle;Your niece; orYour nephew.If you take bereavement time, it will not be deducted from your Managed Time account.Bereavement time in excess of the amounts indicated will be deducted from Managed Time. Forexample, if you take bereavement time due to the death of your parent and you travel out of townand are away from work for seven work days:The first five days will be recorded as Bereavement Time.The two days in excess of the allotted time will be deducted from your Managed Timeaccount.Bereavement time for the death of any other individual will come from Managed Time.For LFG internal use only. Rev. 9/8/2014

To qualify for paid bereavement time, you must notify your supervisor immediately upon yourreceipt of information concerning the death of a family member. In the event a death in the familyplanned time can be substituted with the appropriate bereavement allotment. However, if you areaway from work on an approved leave (e.g., personal leave, military leave, FMLA, or medicalleave independent of FMLA, etc.), at the time a death in the family occurs you are not eligible forpaid bereavement time.Bereavement time can only be used for this purpose and cannot be carried over.Please Note: If you are requesting Bereavement time, the Company reserves the right to requireyou to provide proof of death and proof of your relationship to the deceased.Jury Duty or Subpoenaed Witness TimeThe company is aware that an Employee may be obligated to report for jury duty or as asubpoenaed court witness. You should notify your immediate Supervisor with receipt of notice toreport for service as a juror or subpoena to appear as a witness. In addition, the Companyreserves the right to request a copy of the official summons issued by the clerk of the court or acopy of the subpoena requiring you to appear.Any compensation you receive as a result of your service as a juror or a subpoenaed witness isyours to keep.Your Managed Time account will not be charged for absences due to jury duty or serving as asubpoenaed witness. You will be paid your full base salary for the time you spend on either typeof service during work hours. For any part of the day that you are not performing these servicesyou are expected to be at work performing your job duties.Your Managed Time account will be charged for absences due to your attendance at any court oradministrative hearings or proceedings in the event you are named a party (plaintiff, defendant,respondent, etc.) to the proceedings.For LFG internal use only. Rev. 9/8/2014