Employee Handbook September 2014 without Washington State - Revised

Employee Handbook

1 Employee Handbook – Verisys Corporation – Updated 09/2014

Table of Contents

PURPOSE OF THIS HANDBOOK..........................................................5EMPLOYMENT AT WILL...................................................................................................5OUR COMMITMENT TO DIRECT COMMUNICATION.........................................7EQUAL EMPLOYMENT OPPORTUNITY EMPLOYER............................................8EMPLOYMENT BASICS.....................................................................................................9EMPLOYMENT CLASSIFICATIONS...........................................................................10

NON-EXEMPT EMPLOYEE SPECIFIC INFORMATION..................................................................................................................................................11MINIMUM WAGE, OVERTIME, RECORDKEEPING AND REPORTING REQUIREMENTS, AND EXEMPTIONS.....................................................................11WORKWEEK AND SCHEDULING...............................................................................12OVERTIME...........................................................................................................................12REST AND MEAL PERIODS...........................................................................................13RECORD KEEPING AND REPORTING......................................................................13

EXEMPT EMPLOYEE SPECIFIC INFORMATION..............13MINIMUM WAGE, OVERTIME, RECORDKEEPING AND REPORTING REQUIREMENTS, AND EXEMPTIONS.....................................................................13WORKWEEK AND SCHEDULING...............................................................................13OVERTIME...........................................................................................................................14REDUCTIONS IN SALARY..............................................................................................14

GENERAL INFORMATION FOR ALL EMPLOYEES.........15PERSONAL INFORMATION AND RELEASE OF PERSONNEL RECORDS. 15CHANGE OF EMPLOYEE INFORMATION...............................................................15EMPLOYEE ACCESS TO THEIR OWN PERSONNEL RECORDS.....................15DUTY TO NOTIFY THE COMPANY OF ARRESTS, CONVICTIONS, SUSPENSIONS, EXCLUSIONS AND DEBARMENTS..........................................16EMPLOYEE ACCESS TO THEIR OWN PERSONNEL RECORDS.....................16LOCKERS/PERSONAL POSSESSIONS AND EQUIPMENT...............................18GROUP INSURANCE PROGRAMS..............................................................................19EDUCATIONAL ASSISTANCE......................................................................................22HOLIDAYS............................................................................................................................23PAID TIME OFF BENEFIT..............................................................................................24COURT LEAVE....................................................................................................................26COMMUNICATIONS OF INTERNAL POLICIES....................................................27OPEN DOOR POLICY AND TEAM COMMUNICATION.......................................27


EMPLOYEE PERFORMANCE..................................................................32POLICY AGAINST UNLAWFUL DISCRIMINATION AND HARASSMENT. . .32PERFORMANCE REVIEWS............................................................................................34ATTENDANCE AND TARDINESS................................................................................35PERSONAL APPEARANCE.............................................................................................35STANDARDS OF CONDUCT AND DISCIPLINE.....................................................36CONFLICT OF INTEREST/MOONLIGHTING.........................................................37

EMPLOYEE STATUS CHANGE & SEPARATION...............38TRANSFERS AND PROMOTIONS...............................................................................38SEPARATION.......................................................................................................................38EXIT INTERVIEWS............................................................................................................39

SAFETY AND SECURITY.............................................................................39UNAUTHORIZED PERSONNEL...................................................................................40SELLING AND SOLICITATION.....................................................................................40SAFETY, ACCIDENTS and ACCIDENT REPORTS.................................................40

BASIC RULES..................................................................................................................40Military Service Leave of Absence..............................................................................47

EMPLOYEE ACKNOWLEDGMENT...................................................49


A message to all employees regarding theVerisys Employee Handbook

At Verisys, we know that the talents and skills of you, our employees, are our principal resource. In recognition of this invaluable contribution, we have developed sound, competitive, and comprehensive policies and programs in order to provide an excellent working environment.

This handbook summarizes our policies and programs and is your guide to understanding what we can expect from each other.

It is important for you to be familiar with the information in this Handbook.

Please review this handbook carefully as you are responsible for knowing and adhering to its content.

If you need to refer to the Employee Handbook in the future, remember that the most recent version will be available through the company’s shared information systems or can be provided to you in printed format if needed.

Your manager and/or Human Resources can provide assistance with questions you have at any time.

Our success depends upon us working together in a spirit of teamwork.

Together we will satisfy our customers’ needs and enjoy a mutually rewarding working relationship.

Sincerely,

The Management Teams of Verisys

Thank you for helping us to createan incredible place to work.


PURPOSE OF THIS HANDBOOK

Verisys believes it is important to keep employees fully informed about the company’s policies and programs. We want you to understand what you can expect from the company as well as your obligations as an employee. The policies and programs described in this handbook reflect a great deal of care and concern for the people who make it possible for us to exist . . . our employees.

The intent of this handbook is to provide information regarding Verisys programs, policies, and the benefits available to you. The company’s detailed Policy and Procedures Manual (P&Ps) is another source of important information and is available to all employees. You are responsible for knowing and understanding the P&Ps relevant to your job and you will be asked to sign an acknowledgement to that affect during your on boarding. The P&Ps, which pertain to your position, will be provided to you by your manager and are available for you to review at any time.

Information provided in this handbook applies to all employees of Verisys and companies owned by Verisys, regardless of the name they operate under.

Remember, you are responsible to ask questions and to seek information.

Nothing contained within this handbook is intended to create, or shall be construed as creating, an express or implied contract or guarantee for employment for any term.

Information contained in this handbook may change with time or may be clarified, amended, supplemented, or rescinded. Therefore, Verisys reserves the right to modify, rescind, delete or add to the provisions of this handbook as well as any of its other personnel policies and procedures from time to time as the organization deems necessary or appropriate. You will be notified through normal communication channels of any such changes. The most current version of this Handbook can be found on the Start.Verisys.Com home page under the Employee Services Tab.

The Summary Plan Descriptions (SPD) and benefit booklets provide a full description of benefits. These documents are frequently reviewed and modified. Should there be any differences among this handbook and the SPD or benefit manuals, the language of the SPD or benefit booklet will prevail.


EMPLOYMENT AT WILLEmployment with Verisys is at will, which means that either the employee or the company is free to terminate the employment relationship at any time with or without reason, advance notice or warning.

No employee of the company has the authority to change this at-will relationship except in a specific written agreement declaring such intent and signed by the employee and the company’s CEO or COO.


OUR COMMITMENT TO DIRECT COMMUNICATIONThe best and most rewarding working environment results from a direct relationship based on open communication between all members of the team.

Verisys provides attractive working conditions, pay, and benefits that reward the people who serve our customers. Employees have the right to speak for themselves and have our commitment to listen to them and respond appropriately.

Questions regarding wages and benefits and interpretation of policies related to wages and benefits may be directed to a member of our HR team or the Chief Financial Officer.

Questions regarding performance and conduct should be directed to your manager, the HR Manager or an officer of the company.

Issues related to any personal concerns, harassment, discrimination or any other issue should be reported to any member of the management team, including but not limited to the Human Resources Manager or any chief officer that you are comfortable discussing the issue with. Reports can be made verbally or in writing.

In instances of imminent danger (e.g., fire) or threat (e.g., bomb threat) to the company or its staff, you are required to immediately (as practically possible and using sound judgment) make every effort to contact emergency services (911), law enforcement and someone in management. This also includes an obligation to warn your co-workers, and any failure to report to management or to warn your co-workers, may result in disciplinary action up to and including termination.

One expectation we have of our employees is that you do your best to contribute to the well-being of the organization. It is this organization that provides us with our jobs and our livelihood. We all have a personal interest in making sure the company thrives.

If you have any ideas or suggestions in terms of how we can better serve our clients, how we can be more competitive, how we can remain an employer of choice or how we can best serve our work community, please contact your manager with your ideas. We value you and your contributions.


EQUAL EMPLOYMENT OPPORTUNITY EMPLOYERVerisys believes that every employee has the right to work in an environment free from discrimination.

It is our policy to hire, compensate, promote, transfer, discharge, and make all other employment-related decisions without consideration of an employee's race, color, creed, sex, sexual orientation, religion, age, national origin, disability, veteran status, marital status or any other basis prohibited by local, state or federal law.Verisys will make reasonable accommodations for qualified individuals with disabilities, unless doing so will create an undue hardship on the company, taking into consideration the nature and cost of the requisite accommodation, the company’s financial resources, and the impact of the needed accommodation on the operation and on other employees and our customers.

This policy applies to all aspects of the employment relationship from the hiring process through the term of the employment relationship, including promotions, job assignments, and compensation. This policy also applies to time off, access to benefits, prerequisites, discipline, or discharge. If an employee or applicant feels he or she has not been treated fairly and equally as required by this policy, the individual should refer to the Unlawful Discrimination and Harassment policy set herein.

Those believing they are in need of accommodation should contact the Human Resources Manager. When the disability and/or the need for accommodation are not obvious, the company may ask the individual for reasonable documentation about his/her disability and functional limitations. All requests for accommodation are treated confidentially, and will only be disclosed to those individuals within the organization who are necessary to the accommodation process.


EMPLOYMENT BASICS

INTRODUCTORY PERIODWe want to see all employees get started on the right foot. During your introductory period the focus will be on helping you to learn all about the company and your job. We will provide you with training, resources, and information to help you understand the technical aspects of your position in addition to our company culture and values. The duration of this period varies by position and will be stated in your offer letter.

Don’t worry about asking too many questions. We welcome all questions you might have and will be concerned if you don’t have any.

During your introductory period, we will be evaluating you. Think of it as a final job interview. You and your manager will determine if this is the right place for you to succeed.

This process will include assessing your ability to learn and perform the job, your work habits, attitude, attendance, and fitting in with your colleagues and the organization. This is also your opportunity to become familiar with us and determine if this is where you want to work.

Following this period, your manager will schedule your first performance review. We want to ensure that you are making good progress towards meeting all of the expectations of your position.

Continued employment during this period and thereafter, depends on effectiveness in fulfilling the requirements of the position you were hired for. We do not promise continued employment either during or after the initial evaluation period, and the employment relationship continues to be at-will.


EMPLOYMENT CLASSIFICATIONS1. Full-time Employee: An employee who is hired to work on a regular and

predetermined schedule of 40 hours or more per week. Full-time employees are eligible for benefits once they satisfy the terms and conditions of the various benefit programs.

2. Part-time Employee: An employee who is hired to work on a regular and predetermined schedule of less than 40 hours per week. A part-time employee may be eligible for some prorated benefits as described herein and in accordance with state and/or federal law.

3. Casual/Temporary : An employee who is hired on a temporary basis, with the expectation that he or she will be employed for a finite period of time. Employees in this category are not eligible for benefits.

If you are unclear with regard to your employment classification, please ask your manager. Verisys uses employment classifications to determine eligibility for certain benefit programs.

COMPENSATIONYou were told your rate of pay and your employment classification in your offer letter. Compensation decisions are based on our assessment of the position, training, experience, and the market for similar jobs.

Raises are never guaranteed. Verisys believes very strongly in pay-for-performance. You and your manager will create a plan to determine your goals and performance expectations. All changes in compensation are based on merit and the overall financial well-being of the company.

We believe in frequent feedback and multiple opportunities for employees to meet and exceed their goals.

1. Pay Periods and Paydays: Paydays occur every other Friday. On that day, employees are paid for the two-week period ending five days before payday.

2. Payroll Deductions: The following deductions from paychecks are required by law:

FICA (Social Security)Medicare TaxFederal income taxAll other applicable state and federal taxes


Verisys will honor administrative and court orders for garnishment or wage withholding pursuant to state and federal law. You will not be notified by the company prior to the processing the request unless the company is legally required to do so.

WORK-RELATED EXPENSES AND REIMBURSEMENTThe company has a standard process for employees to report and obtain reimbursement of ordinary and necessary business expenses incurred during the duties of their positions within the company.

Any employee submitting for reimbursement of expenses or having access to a company credit card must have a signed Acknowledgement of the Business and Travel Expense Policy Guide on file.

NON-EXEMPT EMPLOYEE SPECIFIC INFORMATION

MINIMUM WAGE, OVERTIME, RECORDKEEPING AND REPORTING REQUIREMENTS, AND EXEMPTIONS

All Verisys companies adhere to The Fair Labor Standards Act (FLSA) regarding minimum wage, overtime, and recordkeeping provisions and applicable state laws. This means that unless specifically exempted, you must receive at least the minimum wage for all hours worked and overtime compensation at the rate of one and one-half times your regular hourly rate for all hours worked over forty in a given workweek. Overtime pay is based on earnings from all hours actually worked and does not include Paid Time Off (PTO) or any other non-worked paid hours. Where local or state laws differ from federal laws, the company will follow the rule most generous to the employee.

We strive to provide advance notice of overtime scheduling when possible. Your manager must approve any overtime worked. You may not report early, stay late, or work through break/meal periods without the specific approval of your manager. Additionally, the company will pay you for all time worked and you are prohibited from working off-the-clock.

If you believe your compensation has been subject to improper deductions, calculated incorrectly, or altered in any way due to a similar type of error, you should immediately contact your manager or the Human Resources Manager. The matter will be reviewed thoroughly and promptly. If improper deductions have been made, any needed corrections, including


the payment of deducted sums, will be made as soon as possible. If you have any questions, please contact the Human Resources Manager.


WORKWEEK AND SCHEDULINGFor payroll and accounting purposes, the workweek begins Sunday and ends the following Saturday. Your manager will establish your work schedule based on organizational and departmental needs.

The workday for a non-exempt full-time employee is eight hours, exclusive of a meal period. Various factors, such as workloads, operational efficiency and staffing needs, may require flexibility in your starting and quitting times and total hours worked each day or each week. These decisions are based on our ability to meet the needs of our customers. Thus, we reserve the right to assign you to jobs or shifts other than your usual assignment when required.

Non-exempt employees must begin work no earlier than five minutes before their shift starts and end work no later than five minutes after their shift ends. You may not report earlier or stay later without the specific advance approval of your manager.

We will always pay you for your time worked; however, unauthorized hours worked may result in disciplinary action and could lead to termination. Accordingly, work only when authorized to work.

OVERTIMEThe regular workweek for non-exempt employees is forty working hours. As business needs dictate, overtime may be assigned. Overtime is paid to all non-exempt employees at the rate of one and one-half times your regular rate of pay for all worked hours over 40 hours in one workweek. In some areas, the state laws might differ. Where local or state laws differ, the company will follow the rule most generous to the employee.

Overtime pay is based on hours worked only.

For example: If you take Monday off as vacation and then work 4 hours beyond your normal schedule, you will be paid 8 hours of vacation and 36 hours of time worked (a total of 44 hours) at your normal rate of pay.

You may not use additional work hours to lower the number of paid time off hours used during the week (make-up time). Exceptions to this must be pre-approved by your manager.

Although we try to provide advance notice of overtime scheduling, this may not always be possible. Remember, your manager must approve overtime in advance.



REST AND MEAL PERIODSRest and meal periods help reduce fatigue, errors, and help increase productivity. The following is information regarding the company’s approach to rest/meal periods. However, in some areas state law might differ. The company always defers to state law where applicable.

You get one 15-minute paid rest break for each four hours of working time. Ideally, the break will occur near the midpoint of each four-hour work period. Your manager sets specific schedules. Break periods may not be used to extend a lunch period, to work overtime or to leave early.

Unpaid meal breaks are encouraged for anyone working in excess of six hours. You are not required to take an unpaid meal break except in areas where state and local laws require you to do so. If you wish to incorporate an unpaid meal break into your schedule simply discuss this with your manager.

RECORDKEEPING AND REPORTINGAccurate records of hours worked ensure that you will be paid correctly and receive full compensation. All non-exempt employees covered by the record keeping provisions of applicable wage and hour laws must use the company timekeeping system to record hours worked. Your manager must approve any additions, corrections, or changes to those time records. You are responsible for the accuracy and completeness of the information recorded on the time records.

EXEMPT EMPLOYEE SPECIFIC INFORMATION

MINIMUM WAGE, OVERTIME, RECORDKEEPING AND REPORTING REQUIREMENTS, AND EXEMPTIONS

All Verisys companies adhere to The Fair Labor Standards Act (FLSA) regarding minimum wage, overtime, and record keeping provisions and applicable state laws.

WORKWEEK AND SCHEDULINGThe workweek for full-time exempt employees is normally considered to be 40 hours or more; however, greater emphasis is placed on meeting the responsibilities assigned to the position than on working a specified number of hours. Exempt employees do not receive overtime


compensation or compensatory time off, or additional compensation beyond the established salary for the position.


OVERTIMEExempt employees do not receive overtime compensation or earn any type of compensation hours for time worked in excess of 40 hours.

Exempt employees are excluded from overtime pay, minimum wage, and the record keeping provisions of state and federal law. You are informed of your specific exemption at the time of hire or placement. All exempt employees are responsible for reporting any absences. The company does not offer “comp” time, all partial and full day absences will be tracked and applied to the paid time off policy.

REDUCTIONS IN SALARYIt is our policy to ensure exempt employees are not subject to improper salary reductions that would indicate you are being paid on an hourly basis. Verisys prohibits reduction of exempt employees’ salary based on hourly quotas, absences of less than four hours, absences that are related to business needs, jury duty or attendance as a witness for less than a week, or military service of only part of a week.

The company may reduce your salary for the following reasons: if you are absent from work for one or more full days for personal reasons or for absences of one or more full days due to sickness or disability in accordance with the company Paid Time Off Policy (PTO) or when you are on an approved Leave of Absence such as FMLA. Additionally, if you are employed only part of a week during your first or last week with the company, then your salary will be proportionally reduced to reflect the actual days worked.

If you believe that your compensation has been subject to improper reductions, calculated incorrectly, or altered in any way due to a similar type of error, you should immediately contact your manager or the Human Resources Manager. The matter will be reviewed thoroughly and promptly. If improper reductions have been made, any needed corrections, including the payment of reduced amounts, will be made as soon as possible. If you have any questions about exempt status, please contact the Human Resources Manager.


GENERAL INFORMATION FOR ALL EMPLOYEES

PERSONAL INFORMATION AND RELEASE OF PERSONNEL RECORDS Verisys maintains a personnel file for each employee. This file includes the job application and related hiring documents, training records, performance and disciplinary documentation, a record of hours worked, compensation received, any deductions taken from pay, garnishments, absences, leaves of absence, any letters of commendation, and all other employment records. Medical records are part of the personnel file, but they are kept in a separate file to protect your confidentiality.

The company considers your personnel records confidential and they will not be shared with others in the company, except for managers, strictly on a need to know basis. The company requires a signed authorization to release information to third parties. Exceptions to this include subpoenas, court orders, external auditors, and government requests. Verisys does report all new hires to the state you work in and reside in as part of the enforcement of court ordered child support payments.

CHANGE OF EMPLOYEE INFORMATIONKeeping your personnel file up-to-date is important with regard to pay, deductions, benefits, and other matters. If you have a change in any of the following items, you must notify the Human Resources Department as soon as possible:

Legal Name Home Address Primary Contact Phone Number Personal E-Mail Address Emergency Contact Dependents Marital/Domestic Partner Status Change of Beneficiary Exemption Changes (W-4 withholdings)

EMPLOYEE ACCESS TO THEIR OWN PERSONNEL RECORDSYou may review your personnel records at a mutually convenient time during regular business hours. Contact Human Resources to schedule an appointment.


Any concerns you have regarding the completeness or accuracy of the information contained in you personnel file should be discussed with your immediate manager and/or the Human Resources Manager.

If you disagree with an item in your file, you may request that management correct or remove the item. If this request is denied, you may place your own rebuttal or correction statement in the file.

You may request and receive copies of all documents in your personnel file that you have signed.

OBLIGATION TO NOTIFY THE COMPANY OF ARRESTS, CONVICTIONS, SUSPENSIONS, EXCLUSIONS AND DEBARMENTSEmployees are required to report to the Human Resources Manager within five calendar days of:

An arrest for any misdemeanor or felony; Disposition of criminal charges, including conviction; Citation by any law enforcement agency for an infraction occurring

while the employee is on duty; Citation by any law enforcement agency that will impact the employee’s

ability to perform assigned duties; Exclusion from any federal health care program; and Debarment or suspension by any federal or state agency.

Employees must disclose the specific charges filed against him or her, or in the event of a conviction, the judgment and sentence rendered. Failure to comply with this disclosure requirement will be grounds for disciplinary action, up to and including termination.

All employees and officers of the company will be screened monthly for exclusions, debarments and suspensions by any federal health care program or by a federal or state agency.

EMPLOYEE ACCESS TO THEIR OWN PERSONNEL RECORDSYou may review your personnel records at a mutually convenient time during regular business hours. Contact Human Resources to schedule an appointment.

Any concerns you have regarding the completeness or accuracy of the information contained in your personnel file should be discussed with your immediate manager and/or the Human Resources Manager.


If you disagree with an item in your file, you may request that management correct or remove the item. If this request is denied, you may place your own rebuttal or correction statement in the file.

You may request and receive copies of all documents in your personnel file that you have signed.


SMOKING/TOBACCO USEThe company strongly discourages the use of tobacco products including e-cigarettes and vapor products. Employees enrolled in the company health plan have access to assistance with smoking cessation. All employees regardless of benefit status have access to the Employee Assistance Program that also provides helpful information and assistance.

Smoking and other forms of tobacco use, including e-cigarettes and vapor products is permitted only during rest or meal periods and only in the outside areas designated at least 25 feet from any window, door, or air vent into the company’s building or any other nearby building. In the interest of safety, this policy is strictly enforced and violations may result in discipline, up to and including immediate termination of employment.

LOCKERS/PERSONAL POSSESSIONS AND EQUIPMENTAt locations where Company policy prohibits the storage of personal items in the work area, Verisys furnishes lockers for the security of employee coats, purses, cell phones and other personal possessions. Lockers are assigned at the time of hire. Only locks provided by the company may be used. We do not assume responsibility for any theft or damage to the personal belongings of employees. We reserve the right to search these lockers and any company premises or property at any time.

EMPLOYMENT OF RELATIVESVerisys believes that it is in the best interests of all involved to keep business and professional relationships separate from personal and familial relationships; so as to avoid conflict of interest. Accordingly, we will not employ close relatives, spouses, domestic partners, two individuals involved in a dating relationship, or those living in the same household, except under circumstances where:

1. Neither employee may supervise, appoint, remove, or discipline the other;

2. Neither employee may evaluate the work of the other;

3. The employees may not be placed in a situation of actual or reasonably foreseeable conflict between the company’s interest and their own; and/or

4. The working relationship will not create, in the opinion of management, the reality of or the appearance of improper influence or favor.

If two employees develop a dating or marital relationship after employment commenced and any one of the four criteria above has been


or may be breached, one of the two may be transferred or if no suitable position is available, discharged.

The company also reserves the right not to employ close relatives of officers or other high level employees of our customers, competitors, regulatory agencies or others with whom we deal. For purposes of this policy, relatives include: spouses, domestic partners, siblings, parents, children, grandparents, grandchildren, nieces, nephews and people living in the same household.

To summarize, while people that are related might happen to both work at Verisys we do not allow anyone to have the appearance of inappropriate relations when it comes to supervision or influence of another. If a relationship between you and another person at Verisys changes, in a manner that might be construed as violating this policy, then it is your responsibility to let your manager know. Also, if a change in job will create a violation of this policy, it your responsibility to advise your manager of your relations in the office and how the change might impact the workplace.

BENEFITS

GROUP INSURANCE PROGRAMSYou may be eligible to participate in certain company sponsored insurance programs depending on your employment classification. Programs may vary according to each position and are explained to you upon hiring. In some cases, there may be a waiting period before coverage begins.

Additionally, the policy terms may limit coverage depending upon the number of hours an employee works. We intend to continue the programs indefinitely, but reserve the right to change or discontinue these plans at any time.

If we terminate a program, but do not replace it with comparable benefits, you will be notified. You will receive instructions on converting group insurance to individual policies whenever conversion privileges apply. Please remember that the actual benefits provided and eligibility requirements are determined by each of the respective plan documents.

Currently available benefits include the following:

1. Medical/Dental/Vision Insurance If you are regularly scheduled to work 30 or more hours a week, you are eligible to participate in our medical, dental, and vision insurance


programs. You may also obtain coverage for dependents. Dependents include: spouses, registered domestic partners, and children up to age 26. Please see the Summary Plan Description for further information.

2. COBRA Continuation Coverage Upon separation, for reasons other than gross misconduct, you may continue on the medical plan for eighteen (18) months at your own cost. Spouses or dependents are able to continue coverage for up to thirty-six (36) months following a divorce from or the death of the covered employee. Dependents may also continue coverage at their own cost once dependent status is lost. If you or your dependent is eligible for COBRA, a notice will be provided within sixty (60) days from the date the coverage is scheduled to end, in order to elect to continue coverage. Each of the qualified beneficiaries for a qualifying event may independently elect continuation coverage. The covered employee or the spouse must be allowed, however, to elect on behalf of any dependent children or on behalf of all of the qualified beneficiaries. The cost of COBRA to the employee or the dependent is the full cost of premiums charged to the company plus a two percent administration fee.

You may become eligible for an extension of the maximum time period discussed above when a qualified beneficiary is disabled or when a second qualifying event occurs. In the case of disability, benefits may be extended for up to eleven (11) more months. Specific notification requirements apply to the disabled qualified beneficiary. The individual must be determined by the Social Security Administration to be disabled during the first sixty days of continuation coverage and must remain disabled through the eighteen month period. Additionally, the insurance plan must be notified of the SSA determination by the disabled beneficiary or someone on his or her behalf. The plan may set this time frame, but generally it may be no less than sixty days of the time of the SSA determination, the original qualifying event, or the date the COBRA notice is received. If these criteria are met, the beneficiary and all of the qualified beneficiaries receiving continuation coverage due to a single qualifying event are entitled to the eleven (11) month extension of the maximum period of continuation coverage. The extension can be terminated is the disability ends. The plan may charge qualified beneficiaries up to 150 percent of the cost of coverage, during the 11-month disability extension.

Formal notice of these rights is given to you upon hire and again upon a separation. Should you have any questions regarding continuation of coverage benefits, you should contact the Human Resources Manager.

3. Short Term / Long Term Disability and Life Insurance


The company provides income protection insurance for employees that are unable to work due to non-work related injury or illness. All employees scheduled to work 40 hours or more each week and who elect the coverage at the time of enrollment are eligible for short and long term disability. Life insurance is available to employees working at least 30 hours per week and who elect such coverage at the time of enrollment. Full details of this benefit are available in the Summary Plan Description.

4. Retirement Plan (401K) Upon date of hire, all employees are eligible to participate in the company sponsored 401k retirement plan. For information regarding contributions and vesting, as well as other information regarding the plan, employees should refer to the plan’s Summary Plan Description or contact the Human Resources Manager.

Verisys also makes contributions on each employee’s behalf to the federal Social Security System in addition to those each employee makes, through regular FICA and Medicare payroll deductions.


5. Industrial Insurance Accepted industrial injuries or occupational diseases sustained by employees are covered by industrial insurance. This insurance is commonly referred to as workers compensation insurance. Additional information about this program is available from your manager or the Human Resources Manager.

EDUCATIONAL ASSISTANCEVerisys is proud to offer education assistance. Reimbursement for educational related expenses is available to employees that enroll in approved courses that can lead to advancement within the company or enriches your skills in regards to your current position. Courses may be taken at universities, vocational technical institutes, and community colleges or through other approved accredited programs. In addition, certain national certification programs may also qualify for this benefit.

This educational assistance benefit is available to full-time and part-time employees working at least 3o hours per week upon successful completion of six months of employment. Qualified educational opportunities must end after the employee’s six-month anniversary.

Upon verification of regular attendance and successful completion of the course, full-time employees will be reimbursed for 100% of the tuition costs and approved fees up to an annual limit of $2,000. Part-time employees scheduled at least 30 hours per week but less than 40 hours are eligible for $1,500.00 annually with the same requirements.

You must earn a grade of "B" or better or the equivalent, to qualify for reimbursement.

All courses must be pre-approved by your manager or the Human Resources Manager prior to enrollment. Reimbursement can only be requested for fees paid with personal funds and/or student loans. Fees paid with scholarship or grant money cannot be reimbursed. Proof of payment, grades, and school accreditation will be required. The company reserves the right to require additional documentation at its discretion. Any submission of false documents or attempt to circumvent the intent of this benefit will result in disciplinary action up to and including termination.

Verisys values and wants to encourage the ongoing pursuit of self-improvement. We encourage everyone to make use of this benefit. If you are not sure what types of programs will most benefit your career goals, please meet with your manager to discuss the matter in more detail.


REFERAL BONUSVerisys strives to be an employer of choice. We believe that encouraging others to work here is the highest compliment we can receive from our employees. To that end, the company offers a referral bonus of $100 after the referred employee successfully completes his/her first 90 days of employment. Please see the Employee Referral Form for more details. Occasionally, Verisys might use third party contractors in our recruiting process. Employees are prohibited from accepting referral bonuses from a third party contractor that is actively engaged in our recruitment process. Such activity by an employee is considered a conflict of interest and is subject to disciplinary action up to and including termination.

HOLIDAYSWe observe the following ten days as paid holidays per calendar year. These holidays may be occasionally reviewed and adjusted by the company in order to meet business needs.

New Year’s DayMemorial DayIndependence DayLabor DayThanksgiving DayDay after ThanksgivingChristmas EveChristmas DayPlus 2 additional days each year assigned and published by the company annually.

Based on customer needs, you might be asked to work a holiday. If you are a non-exempt employee you will be paid for both the holiday and hours worked. Non-worked hours are not included in overtime calculations.

If any holiday falls on a Saturday, the preceding Friday will be recognized as the holiday. If any holiday falls on a Sunday, the following Monday will be recognized as the holiday.

Full-time and part-time employees working at least 30 hours a week are paid for holidays based upon the number of hours they are normally scheduled to work at their normal hourly rate. Part-time employees working less than 30 hours weekly and casual employees do not receive holiday pay.

In order to receive holiday pay, you must have:


1. Worked the last scheduled workday before and the first scheduled workday after the holiday, unless on an approved pre-planned paid day off. Those on a leave of absence do not receive holiday pay, whether the leave of absence is paid or unpaid.

2. Have been scheduled to work on the holiday in question. Part-time employees not regularly scheduled to work that day will not receive holiday pay. Part-time employees regularly scheduled to work that day will receive holiday pay equivalent to the number of hours they otherwise would have worked.

If a holiday falls during your approved pre-planned paid days off, you will be paid for the holiday hours. For example: If you have vacation Monday through Friday of a holiday week, then you will receive 32 hours of vacation pay and 8 hours of holiday pay.

PAID TIME OFF BENEFITVerisys is pleased to offer our team members with the benefit of Paid Time Off (PTO). We feel strongly that offering this benefit has a positive impact on the organization. Verisys strives to be an employer of choice.

PTO benefits encourage our team members to achieve a work life balance that leads to a happier and more productive work place. PTO provides you with the flexibility to use your time off to meet your personal needs in a responsible and manageable way; understanding that the company still needs to organize its business and keep our customers’ needs met.

You will accumulate a specified amount of PTO each pay period worked and it is up to you to allocate how you will use it – for vacation, illness, caring for children, school activities, medical/dental appointments, leave, personal business or emergencies. You must use PTO when available before taking any unpaid time away from work regardless of the reason for the absence. The company will require you to use any available PTO during disability or family medical leave, or during any other leave of absence.

The amount of PTO earned will depend on your length of your service with the company.

If it is determined you have abused your paid time off privileges by falsification or misrepresentation you will be subject to disciplinary action up to and including termination of employment.

Eligibility:


You are eligible to receive PTO if you are a regular status employee scheduled to work at least 40 hours per week. Part-time employees working more than 30 hours per week accrue PTO on a prorated basis.

Management of PTO: You are responsible for managing your PTO account. It is important that you plan ahead for how you will use it. This means developing a plan for taking your vacations, as well as doctor's appointments and personal business. It also means holding some time in "reserve" for the unexpected, such as emergencies and illnesses.

Accruing PTO into your PTO Account: The amount of PTO you accrue each pay period is based on your length of service and accrues according to the Accrual Schedule below. Hours earned are added to your PTO account each pay period. PTO is accrued as you work. You will not accrue PTO while you are on any type of leave of absence or disability. The number of PTO hours accrued and available will appear on your paycheck stub. PTO is hours, or time; it is not money and cannot be converted to cash.

Adjustments to time accrued are done quarterly (Jan., April, July & Oct.) based on the years of service at the time. For example: an employee celebrating 3 years with the company in February will see their PTO accrual rate adjusted the first paycheck of April following their anniversary.

Accrual Schedule for Full Time Employees hired on or after 7/1/2014

Years of ServiceAccrual Rate

Per Pay PeriodAnnual PTO

Accrual in DaysAnnual PTO

Accrual in HoursLess than one year 3.08 10 80

1 - 3 years 6.16 20 1604 - 9 years 7.70 25 200

10 years or more 9.24 30 240

If you were hired prior to 7/1/2014, you will accrue at the rate that was published or agreed to at the time of hire or after the change in policy (we eliminated leave types and went to PTO on 1/1/2014). If you are unsure what your specific PTO accrual rate is, then please contact your HR specialist for clarification.

Maximum Time Accumulated, PTO caps – Applies to ALL Employees:

(Effective January 1, 2015, regardless of an employee’s hire date)


Although you may carry over unused PTO time from year to year, there is a cap on the amount of available PTO balance that you can have at any one time. In general, the balance rolls; meaning it does not expire on any date; it merely rolls forward as you continue to work at the company. This encourages you to use your PTO and allows the company to manage its financial obligations responsibly. Once you reach your cap, you will not accumulate any additional PTO until you use some of the time in your PTO account and drop below the cap. After your balance goes below the cap, you will again begin accruing PTO. However, you will not receive retroactive credit for time worked while you were at the cap limit.

The PTO cap table is as follows:

Years of Service PTO Accrual Cap In Days PTO Accrual Cap In HoursLess than one year 10 80

1 - 3 years 25 2004 - 9 years 30 240

10 years or more 35 280

Minimum Increments of PTO: Non-Exempt: PTO can be taken in 1-hour increments. All scheduled non-worked time should be accounted for. “Making up hours” or other special arrangements are at the discretion of your supervisor and must meet business needs. Unscheduled absences are subject to the company attendance policy regardless if PTO is available or not. Please refer to the attendance section of this handbook for detailed information regarding the attendance policy.

Exempt: PTO can be taken in 4-hour increments. Exempt level employees are measured by the work performed not the number of hours worked. Therefore, Verisys does not offer flex-time to exempt employees. Any special arrangements such as working from home must be approved by your supervisor and must meet business needs.

Notice and Scheduling: You are required to provide your supervisor with reasonable advance notice and obtain approval prior to using PTO. This allows for you and your supervisor to prepare for your time off and to ensure that all staffing needs are met.

There may be occasions, such as sudden illness, when you cannot notify your supervisor in advance. In those situations, you must inform your supervisor of your circumstances as soon as possible. Your supervisor will review the process for reporting unscheduled absences with you.


It is a good idea to think of who is affected by your absence and communicate accordingly. Sending an email to those you have meetings with or interact with daily is appreciated by your teammates.

Recording Paid Time Off: You submit PTO requests through the company’s time keeping system. When PTO is not available, you must account for time away from work using an unpaid time off request. All scheduled non-worked hours must be accounted for each week. For legal compliance reasons, we are required to track absences regardless of the reason for the absence or the availability of your PTO.

Payment upon Separation: Unused time off benefits (PTO) will not be paid out to you upon separation from the company unless otherwise required by law or as part of a signed severance agreement.

COURT LEAVEServing on a jury is a fundamental responsibility of citizenship and, unless business necessity requires it, Verisys will not ask that you attempt to be excused from jury duty. Additionally, Verisys will allow court leave if you receive a summons or subpoena requesting you to appear in court unless you are either a plaintiff or a defendant in the action.

In order to be entitled to court leave, you must present to your manager within one week of receipt, a letter from the Court Clerk showing evidence of a summons and/or a subpoena. You will be paid your regular earnings without charge to other paid leave benefits.

You are expected to work your regular work schedule on days when court is not in session and work the remaining part of your scheduled shift if you are excused from court for a substantial portion of the day. If you work nights or weekends, please work with your manager to adjust your schedule accordingly.

COMMUNICATION

COMMUNICATIONS OF INTERNAL POLICIESVerisys wants you to be well informed concerning your workplace, safety rules, new developments or changes in policies or rights under state and/or federal law.

Generally, this information is provided to you via email, voicemail, and/or meeting notes. We make every attempt to ensure the ability to access and retrieve this information is available to everyone. If you are unable to find


the information you need, please ask your manager or the Human Resources Manager.

OPEN DOOR POLICY AND TEAM COMMUNICATIONIn our desire and willingness to listen to you, we believe in an open door communication policy. You are encouraged to discuss with your immediate manager any questions, problems, or concerns you may have. Your manager may secure the assistance of other persons. We will listen to your concerns with respect and will do our best to help solve any problems.

If there is any reason you feel that you cannot bring a concern directly to your manager or the person involved, a meeting with the Human Resources Manager, COO, or any other manager may be scheduled. Please remember—do not keep a problem to yourself. We cannot help solve a problem if we do not know it exists. Please feel free to communicate concerns without fear of reprisal.

DRUG AND ALCOHOL FREE WORKPLACEWe, at Verisys Corporation, have a vital interest in ensuring safe, healthful and efficient working conditions for our employees. As such, Verisys and each of its affiliates, maintains each of our offices as a drug-free workplace. We prohibit the use of non-prescribed drugs or alcohol during work hours. If an employee comes to work under the influence of drugs or alcohol or uses drugs or alcohol during work time, the employee will be disciplined in accordance with company policy, up to and including termination. Further, under Verisys' drug testing policy, all current and prospective employees must agree to the company’s drug testing policy.

GOSSIP FREE WORKPLACEThe company discourages gossiping in the workplace. One employee should not talk to another employee about things that the employee can do nothing about. In other words, if the person you’re talking to cannot change the situation, please do not discuss it with him or her. Doing so will be considered gossip. If someone begins to involve you in gossip, it’s your responsibility to let him or her know that this is not OK. Each team member is responsible for encouraging and cultivating a gossip-free workplace. If you see other team members participating in gossip, request that they stop. If the issue continues, please report it to your manager or to Human Resources. This is not tattling. Tattling is a form of gossiping that spreads news of no importance. On the other hand, reporting behavior that is detrimental to the entire organization is an employee’s duty. Everyone must work for the good of the team.

USE OF COMPANY COMMUNICATION SYSTEMS


Personal use of company communication systems should be kept to a minimum. All necessary personal communications should be made during your break periods or your meal break whenever possible. No personal long distance or toll telephone calls are to be charged to the company. The use of company email, phones, and instant messaging internally for non-business related reasons is considered to be personal use and should also be kept to a minimum.

All information stored on Verisys’ systems, including its computers, servers, networks, voice mail, email and cellular and office-based telephones and record systems, is considered property of the company.

The company reserves the right to access, audit, review, copy, disclose, and delete any messages, text, or images generated, sent, received, accessed or stored on these systems for any purpose and to disclose this information to any party, inside or outside the business, that it deems appropriate without prior notice.

You have no expectation of privacy in these systems and are urged not to use them for messages you do not want reviewed by others.

Your use of these systems for any non-work related purposes signifies your consent to these terms of use.

Verisys’ systems, databases, research tools and resources are to be used strictly for business purposes only. Use of these systems for personal gain, information, or any other reason outside of the scope of your position will result in disciplinary action up to and including termination.

These systems may not be used to download or steam music and or videos. These systems may not be used to solicit, recruit, or seek involvement for commercial ventures, religious, political or charitable causes, outside organizations, or other non-job related solicitations. These systems may not be used to create, view, access, transmit, download, display, print, or store offensive, threatening, or disruptive messages, text, or images. Among the messages, text, or images that are considered offensive are any messages containing sexually explicit or obscene language or content or those containing language or content prohibited by this organization’s unlawful harassment policy. These systems may not be used to threaten harm against any person or property or to criminally harass or stalk any individual. These systems are not to be utilized to generate chain letters, to post messages to multiple list servers, or for recreational game playing. Further, these systems are not to be used for the transfer of copyrighted, trade secret, confidential or proprietary information, materials, images, or data, without prior written authorization.


An employee’s use of these systems signifies his or her consent to these terms of use, including company access, monitoring and disclosure of electronic information. Any employee in violation of this policy may be subject to disciplinary action, up to and including immediate termination of employment. The fact that this policy does not specifically identify a particular site or technology does not limit the extent of the application of this policy.

DATA SECURITYTHE FOLLOWING RULES ARE TO BE STRICTLY ADHERED TO BY ALL COMPANY EMPLOYEES Company materials may not be removed from offices by staff without

the consent from a supervisor. Flash drives and CDs may not be used to store data. Company computers may not be removed from offices by staff without

the consent of a supervisor. Management must take all appropriate measures to safeguard company

computers and data contained therein when removed from the office. Precautions must be taken to protect email on mobile devices. Password-protect your access – Use a strong password or passphrase to

protect access to your data. Limit transportation and transmission of data – Do not ever transport or

transmit sensitive/confidential data. For example, don’t allow for sensitive/confidential data to be sent via email or removed on a USB.

Encrypt stored sensitive/confidential data – Whenever possible, encrypt stored sensitive/confidential data, whether it is being permanently or temporarily stored. This can help prevent unintended disclosure even if your system has been compromised. Data can be protected by encrypting the entire storage drive (whole disk encryption) or as selectively as you need, such as by folder or even individual files.

Follow corporate policies for handling and storing work-related information.

Dispose of sensitive information properly - Simply deleting a file does not completely erase it. To ensure that an attacker cannot access these files, make sure that you adequately erase sensitive files (use PGP per company policy).

Do not disclose or allow access to Verisys® data to anyone other than authorized licensees.

Certain types of data (personal information) require special handling per Verisys policies and procedures.

Do not merge data obtained through Verisys with data obtained through any other source.

Notify management immediately of any unauthorized use, breach, loss, or disclosure of the Verisys data.


Comply with applicable laws regarding data privacy and security. Abide by the Verisys Confidentiality Agreement.


PERSONAL CELLULAR PHONES & OTHER TELECOMMUNICATIONS DEVICESYou may carry and use personal mobile or cellular telephones, or other types of communication devices only to the extent such activity does not interfere with productivity, safety, or morale. Such use is not permitted in work areas where business requirements dictate that all personal communication devices are stored away from personal work areas.

The company allows for the use of personal music devices and headphones for the purpose of listening to music if it does not impede the employee from performing normal job functions such as answering the phone.

Personal calls and messages should be placed or received only on breaks and meal periods, absent exigent circumstances. Ring settings should be set at vibrate or turned off to avoid interfering with the work of others. These devices may not be used to create, view, access, transmit, download, display, print, or store offensive, threatening, or disruptive messages, text, or images while on company premises or while you are working. These devices may not be used for the transfer of copyrighted, trade secret, confidential, or proprietary information, materials, images, or data of this company or those we serve at any time.

Depending on the nature of your specific job, the needs of your department and our customers, various groups within Verisys may have additional guidelines regarding the use and storage of cell phones during working hours. Please discuss any additional requirements with your manager.

Any employee in violation of this policy may be subject to disciplinary action, up to and including immediate termination of employment. The fact that this policy does not specifically identify a particular technology does not limit the extent of the application of this policy.

SOCIAL NETWORK SITES, BLOGS, & FORUMSWe respect your freedom to use the internet, weblogs (blogs), web forums, social networking, and social media sites as you feel appropriate while off duty using equipment or using systems not owned or provided by the company. However, for the protection of the company and our clients all employees must adhere to the following guidelines:

You may not use work facilities, equipment, or time to develop, design, maintain, update, or make entries on Internet sites, blogs, forums, or social networks. Similarly, you may not link these sites, forums, etc., to the company website.


At all times, you are responsible to comply with our non-disclosure and confidentiality policies to protect confidential and proprietary information about our business, employees, customers, clients, and vendors. This responsibility applies to all professional and personal communications, even while off work using one’s own equipment.

These systems may not be used to threaten, harm, harass, stalk, invade privacy, publish private facts, defame or infringe intellectual property of any employee, entity, or person with whom we work or have a business relationship.

You may and are encouraged to express your individual views or beliefs. At the same time, if you state that you work for Verisys, you must also state that any opinions expressed are yours alone and not the opinions of Verisys. It must be clear that you speak for yourself, and do not speak for or on behalf of the company. You are solely responsible for the content of your communication on such sites, blogs, forums, and networks and are solely liable for any criminal or civil obligations arising from that activity.

You may not use company trademarks, logos, service marks, trade dress, slogans, or copyrighted materials without express prior written authorization from an officer of the company.

Verisys monitors its facilities and systems for compliance with this policy and monitors the Internet and various sites for the use of its name, copyrights, marks, website, other intellectual property, and any other associated inappropriate material. Anyone that violates this policy is subject to disciplinary action up to and including immediate discharge. The fact that this policy does not specifically identify a particular site or technology does not limit the extent of the application of this policy.

EMPLOYEE PERFORMANCE

POLICY AGAINST UNLAWFUL DISCRIMINATION AND HARASSMENTIt is the policy of Verisys to provide you a working environment in which your individual dignity is respected. The harassment of anyone because of their race, national origin, sex, sexual orientation, age, religion, disability, veteran status, or marital status is strictly prohibited. This applies to any employee, manager, officer, or outside third party with whom you interact while performing your work.


Discrimination may take many forms including the following employment actions if based on the individual’s race, national origin, sex, sexual orientation, age, religion, disability, veteran status, or marital status:

Eliminating individuals from opportunities to apply or interview for employment;

Eliminating opportunities for transfers, raises, or promotions;

Denying leave or other reasonable accommodation;

Transferring an individual or modifying duties in a manner that has a negative impact on the employee;

Discharging or laying off an employee; or

Failing to respond to discrimination or harassment concerns so as to leave the employee no option but to quit his or her job.

The focus of the law regarding unlawful harassment is the recognition that this activity is illegal precisely because it creates a barrier to equality in the workplace and is therefore a form of illegal discrimination. Harassing conduct aimed at an individual in one of the above listed groups is unlawful and strictly prohibited.

Unlawful harassment includes verbal and physical conduct having the effect of demeaning or harming another individual because of that person’s sex, sexual orientation, race, ethnic background, national origin, age, religion, disability or medical condition, or veteran status. Harassing conduct may include, but is not limited to:

a) Physically assaulting, threatening, or verbally abusing another based on the person’s sex, sexual orientation, race, ethnic background, national origin, age, religion, disability or medical condition, or veteran status;

b) Telling jokes, teasing, using epithets or slurs aimed at people within one or more of these groups;

c) Circulating writings, printed material or cartoons meant to denigrate members of these groups; and/or

d) Displaying of other offensive objects or symbols.

e) Sexually harassing conduct may include other actions, such as:


f) Sexual advances or requests for sexual activity or dates;

g) Display, distribution, or telling of sexually oriented jokes, stories, pictures, or other graphic materials; and/or

h) Suggestive or obscene gestures, including physical posturing or contact.

Harassing activity is a violation of the law and of company policy. Therefore, any of this conduct will result in prompt disciplinary action against the harassing employee, up to and including immediate termination of employment. There are times when this type of conduct may occur off duty and off premises, but may impact the working environment. Therefore, such conduct having a nexus to the workplace will be treated as a violation of this policy with disciplinary consequences. Finally, such prohibited activity includes conduct carried out in person, via telephones, cellular and mobile phones, computer systems, electronic mail, or any other electronic means, regardless if company or personally owned.

If you feel that a violation of this policy has occurred, you are encouraged to raise your concerns with your manager, any other manager, the Human Resources Manager, or the Chief Operating Officer. If you feel that these parties are unable to respond to this concern or are responsible for or otherwise involved in the offensive conduct, you may contact the Chief Legal Officer or the Chief Executive Officer. The complaint need not be in writing or any other format and should simply be brought to the appropriate party’s attention promptly in order to allow adequate investigation and response as discussed below. We assure you that whatever method you choose, your complaint will be dealt with promptly and with the utmost discretion. You will not be penalized or retaliated against for reporting such concerns.

An investigation of all complaints will be undertaken immediately. Complaints will be kept confidential to the extent practical, while allowing a thorough investigation to proceed. The complaining employee will be kept informed of the progress of any investigation and findings. He or she will be asked to refrain from discussing the complaint with other employees or those outside the investigative process in order to protect the integrity of the investigation process and to reduce the risk of release of the identity of the complainant or witnesses.


The company will do its best to take corrective action that will be sufficient to immediately stop the conduct and prevent any future harassment.

Any form of retaliation, including but not limited to questioning of, or derogatory comments, threats, intimidation, or actual harm against individuals making harassment complaints, witnesses or any other involved employees, is against the company's policy and is strictly prohibited. Retaliatory activities will be treated as a separate violation of this policy and will subject the individual to discipline, up to and including immediate termination of employment.

PERFORMANCE REVIEWSRegular performance reviews provide you and your manager with the opportunity to discuss how well expectations are being met, to clarify job responsibilities and to explore possibilities for improving performance. The performance review is part of your personnel record. You will be asked to sign the performance review to indicate that it was reviewed with you. Your signature does not imply agreement with the evaluation. You may add your own comments to the review. You will receive a copy of any evaluations upon completion of the review.

It is our intent to conduct performance reviews at the end of the initial evaluation period, the anniversary date of employment and each anniversary date thereafter. Temporary employees do not receive formal performance reviews, although their performance will be monitored. Performance reviews may also be conducted at other times for specific reasons such as promotion, poor work performance, acknowledgement of exceptional job performance, or disciplinary problems.

ATTENDANCE AND TARDINESSRegular attendance and punctuality are essential requirements of any position with the company. In order to serve our customers and provide for efficient operations, employees must be at work at their assigned time. Furthermore, regular attendance and punctuality show respect for fellow employees who must do the job in an employee’s absence.

It is necessary for you to report to work regularly and on time. If you are unable to report to work or will be late, you must let your managers know as soon as possible before your scheduled start time that you will be absent or tardy. Each Verisys location has call in procedures that your manager will advise you of.

If the absence or tardiness is due to an emergency, you must call in or have someone call in for you as soon as possible. Attendance or tardiness


problems, as well as failure to notify the appropriate persons, may result in discipline, up to and including immediate termination of employment. If you fail to report for work or call in for three days in a row you will be deemed to have voluntarily resigned your position.

We realize that on occasion everyone misses work for valid reasons. Excessive absences or tardiness, however, even for legitimate reasons, may be cause for discipline, up to and including immediate termination of employment.

Following absences of more than three days or to confirm your ability to work with or without restrictions, you may be required to provide medical confirmation.

PERSONAL APPEARANCEPublic perceptions about the company can help us succeed and prosper or they can contribute to a loss of business. Perceptions are formed, fairly or not, partly by the outward appearance and dress of our employees. A neat and clean personal appearance is essential to our public perception and your own advancement.

Employees should wear clothing appropriate to each job. The dress code may be more stringent in areas with higher public and/or client contact.

Employees who are inappropriately dressed will be sent home without pay and directed to return to work in proper attire. This policy is a general guideline on dress and grooming standards. If you have any questions regarding appearance standards for your position, please ask your manager or the Human Resources Manager.

STANDARDS OF CONDUCT AND DISCIPLINEMany individuals and companies rely on the quality and reliability of our products and employees. Thus, you are expected to provide excellent and reliable performance. Any failure to meet this high standard serves as a basis for concern and/or discipline, up to and including immediate termination of employment.

By way of example and not limitation, the following conduct is strictly prohibited:

Failure or refusal to carry out legitimate job assignments and management requests (insubordination);

Unauthorized release of company trade secrets or intellectual property;


Unauthorized release of confidential proprietary information;

Swearing or verbal abuse while on our premises or carrying out our job duties;

Falsification of any work, personnel or other records;

Removal of property without permission;

Unauthorized taking of funds or property or unauthorized charges against an account;

Dishonesty;

Discrimination against or harassment of coworkers;

Possession, consumption or being under the influence of alcohol or a controlled substance at work or on our premises;

Deliberate damage to property;

Altercations, fighting or threatening to fight with another;

Participation in a business directly competing with Verisys or any company owned by Verisys;

Carrying firearms or weapons;

Excessive absenteeism or tardiness in reporting to work or returning from rest periods or meal periods;

Failure to report an absence in accordance with the absenteeism policy;

Failure to comply with safety or security rules and procedures;

Carelessness or negligence in the performance of an assigned duty or in the care and use of company property;

Sleeping on the job; and/or

Other violations of specific policies.

It is the intent of our management to employ coaching techniques and clear communication about what is expected so that issues of discipline never arise. In some circumstances, however, discipline may be warranted. While


progressive discipline may be available, such use is solely at the discretion of the Company and any disciplinary consequences, up to an including immediate discharge may be employed. The employment relationship is at will, and may be ended at any time, with or without notice, and with or without cause.

CONFLICT OF INTEREST/MOONLIGHTINGVerisys expects the primary interest of employees to be to our customers and the community we serve. A conflict of interest occurs when the activities of an employee actually or potentially affect the organization in a negative way. You may not engage in or accept outside employment or render services with a person, firm or corporation when such service or employment:

Involves such hours, work, or physical effort that it would or could be reasonably be expected to reduce the employee’s quality or quantity of service in regards to your position with Verisys;

Generates earnings from outside employment or business interests which directly result from your affiliation with Verisys;

Generates earnings from outside employment or business interests that directly conflict with or compete with the company’s business;

May or does interfere with Verisys’ relationships with its existing or potential clients or business partners;

Creates the appearance of impropriety;

Is in violation of the agreements, which you signed at the time of hire.

You should discuss outside employment with your managers prior to actually accepting outside employment. If at any time the company observes a conflict of interest and/or your performance becomes less than acceptable, the company may require you to separate from the other position. We may also have to consider disciplinary action in cases of actual or potential harm to the organization.

We recognize that our employees may hold a wide range of personal beliefs, values and commitments. These beliefs, values, and commitments may create a conflict of interest in the following circumstances:

When beliefs, values, or personal commitments prevent employees from fulfilling job responsibilities;


If employees attempt to use the company’s time and facilities for furthering their beliefs, values, or personal commitments; or

If an employee continues attempting to convince others of his or her personal beliefs after s/he has been asked to stop.

Employees shall not accept gifts, gratuities, free trips, personal property or other items from an outside person or organization as an inducement to provide services or engage in employment that may result in a conflict of interest.

EMPLOYEE STATUS CHANGE & SEPARATION

TRANSFERS AND PROMOTIONSIt is our desire to give qualified employees preference over others when filling vacancies or new positions within the organization. Please note, however, because of legal requirements, levels of education and other qualifications required for some positions, promotions within our organization are not always possible. Your past performance, qualifications, abilities, job experience and potential are important factors that we consider in the selection process of employees for promotion. Where these factors are deemed to be equal among two or more qualified employees and we decide to promote from within, length of service may be a determining factor.

Any employee who is qualified for one of the positions and is satisfactorily performing his or her present job may apply for an available position by following the directions indicated on the posting. Management reserves the right to determine relative qualifications for a posted position or to hire from outside the organization rather than promote from within.

The company also may initiate transfers. This allows us to broaden the range of skills within the organization and enhances individual versatility.

SEPARATIONThe employment relationship is at will and can be terminated, with or without cause, at any time by either party. No employee or manager has the right to change this relationship or to make a contract binding on the company except the Chief Executive Office and Chief Operating Officer and then only if done in writing and signed by both parties.


Employees who have resigned their employment with proper notice or who have been laid off are eligible for rehire based on the same terms and conditions as other applicants.

1. Voluntary Resignation: If an employee voluntarily intends to end his or her employment, we hope that non-management employees will give at least two weeks’ notice to your manager. Management and key employees are expected to provide at least four weeks' written notice.

2. Involuntary Discharge: In some cases, the company may determine it is necessary to end the employment relationship.

EXIT INTERVIEWSThe company wants to conduct an exit interview with all separated employees. The purposes of this interview includes: ensuring the return of all company property; reviewing financial arrangements; reviewing the reasons for the separation; and obtaining the employee's input and suggestions for improvement.

The employee will be informed of any rights to continued benefits coverage at this time. The employee’s final paycheck will be available on the next regularly scheduled payday following separation, unless otherwise required by state and/or local laws. See COBRA in the benefit section of this handbook for further information regarding potential continuing health care related benefits.

SAFETY AND SECURITY

SECURITYSecurity is an important concern for all employees. When leaving the premises at the conclusion of your workday, check your work area for open windows, lights left on, coffee makers and stovetops left on and other potential hazards.

It is critical that you follow the security protocol for your office in regard to alarms and/or interior and exterior entry points. Your manager will review the security practices for your location.

If you observe an unsafe condition, please report it to your manager as soon as possible. Burnt out light bulbs, unlocked doors, or other such hazards are not always noticed immediately and for everyone’s safety need to be corrected.


UNAUTHORIZED PERSONNELYou should make every effort to be aware of strangers on the premises. Anyone who notices an unfamiliar or unauthorized person on the premises should immediately contact the manager in charge.

SELLING AND SOLICITATIONYou are required to observe the following rules and report violations to your manager:

1. Except for legitimate business purposes and with prior authorization, individuals not employed by this organization may not at any time solicit, survey, petition or distribute literature on any company property. This policy includes charity solicitors, salespersons, questionnaire surveyors, union organizers or any other solicitor or distributor.

2. Employees may not solicit for any purpose during work time. Work time includes that time for which the employee is paid and expected to be performing services for the company. Work time includes both the soliciting and/or the solicited employee’s work time. Reasonable forms of solicitation are permitted during non-work time, such as before or after work or during meal or break period, in non-work areas. You may not distribute literature for any purpose during work time or in any work areas. The employee lunchroom is a non-work area. The company’s email and internet systems may not be used to solicit or proselytize for commercial ventures, religious, political, or charitable causes, outside organizations, or other non-job related purposes.

GAMBLINGConsistent with our commitment to complying with all federal and state laws, the company strictly prohibits illegal gambling, raffles or other games of chance using company resources or in company facilities. This includes sports betting pools and all other forms of gambling.

SAFETY, ACCIDENTS and ACCIDENT REPORTS

BASIC RULESWe ask that you cooperate in helping to promote safety and to prevent accidents to yourself as well as to other employees, customers and visitors by observing all applicable state and federal regulations and all company rules, including the following.


Promptly report all unsafe or potentially hazardous conditions to your manager.

Learn the posted fire rules, the location of fire alarm boxes, fire extinguishers, escape routes and your own duties in case of fire.

Keep individual work areas clean and orderly.

Store all materials and equipment in their proper area.

Do not engage in horseplay.

Drive safely and courteously when operating vehicles.

Do not smoke or permit others to smoke in "No Smoking" areas.

When lifting heavy objects, follow the proper procedures and use the appropriate number of persons to assist you.

ACCIDENTSIf you should sustain an injury while on the job, you must notify the nearest available manager immediately. The manager will assist with any aid you may need and ensure your safety first; including if necessary contacting emergency assistance. Once your personal safety has been addressed the manager will conduct any necessary investigations and complete an accident report.

WORKPLACE VIOLENCENothing is more important to this organization than the safety and security of its employees. Therefore, we have a zero tolerance policy toward acts of workplace violence. We will not tolerate violence or threatened violence against any of our employees, or any other persons on our premises by anyone, including members of the public and/or family, friends, or acquaintances of an employee.

Prohibited Acts: Acts of violence include, but are not limited to, the following:

Physically harming or fighting with another individual;

Pushing, shoving, or striking another individual;

Intimidating, bullying or coercing another individual;


Harassing another individual in person or by other means;

Stalking another individual in person or by other means;

Threatening another individual in person or by other means; &

Possessing any type of weapon on company premises, including parking lots.

Warning Signs of Violence: Behaviors that may indicate a likelihood of violence include, but are not limited to, the following:

Employee outbursts of anger or rage without provocation;

Erratic behavior on the part of an employee;

Threats or verbal abuse made by an employee or aimed at an employee;

Comments about violence and/or suicide;

Comments about or display of firearms and other weapons;

Extraordinary personal use of company systems or vehicles;

Expressions of fear or anxiety by co-workers;

High frequency of phone calls or visits by a non-employee or stranger that cause an employee to be distracted or distressed;

Personal or electronic delivery of notes, messages, gifts, symbolic items that cause fear or apprehension;

Broken windows, doors that have been blocked open, fences that have been cut, graffiti, or other evidence of criminal activity;

Surveillance or stalking of employees; and/or

Missing or disturbed mail, photographs, or other items.

Reporting: If you have been subject to or have witnessed violent behavior or have identified the warning signs of violence you should immediately contact your manager or if not available, the Chief Operating Officer or Human Resources Manager to report your concerns. This report may be made, orally or in writing, regardless of the relationship between


the reporting individual and any involved parties. All reports will be promptly investigated and kept strictly confidential. No employee will be penalized, disciplined, or retaliated against for bringing forth such concerns or for being the victim of violence.

If an act of violence is occurring on the workplace or during the course of employment, the employee should immediately call 911 and the first available manager.

Consequences: Any time an employee makes threats, displays threatening behavior, commits violent acts or carries out acts of harassment or stalking on this organization’s premises, that person shall be removed from the premises as quickly as safety permits and receive disciplinary action sufficient to eliminate any further prohibited activity, up to and including immediate termination of employment. Such conduct may also be reported to law enforcement. These consequences will also apply to cases in which employees use or have used company resources, such as telephones, copiers, fax machines, computers, letterhead, or vehicles to carry out threats or harassment of any other person, inside or outside this organization. At any time a non-employee, such as a customer, vendor, or family member of an employee, commits an act prohibited by this policy; the individual will be removed from premises as soon as safety permits and law enforcement will be immediately contacted.

The company will respond to the unacceptable behavior based on the needs of the affected employees and in a manner that protects all employees and eliminates the threat of further such acts, to the extent possible. Thus, in addition to removal, discipline, and termination of employment or business relationship, the company may also execute a No Trespass letter addressed to the violent, threatening, or harassing individual, assist the affected individuals in receiving restraining orders, assist those individuals by conducting safety planning around the workplace and work-related activities, alter affected employees’ work schedules, or provide them with needed time off, and refer the employee to community resources and local domestic violence services.

Reporting Restraining Orders: We require that all employees who obtain protective or restraining orders listing the company’s location as a protected area provide their manager and the Human Resources Manager with a copy of the order, even if the order is temporary. We prefer to keep a certified copy of the order and will provide for the costs of certification to ensure law enforcement has access to a copy in the event it must be enforced. Failure to report the fact that the order includes the workplace may subject you, your co-workers, and the public to additional dangers should the company be unaware of the provision. Therefore, the failure to


report such an order will result in disciplinary consequences, up to and including immediate termination of employment.

The company does not require that employees obtain restraining orders against any other party and will respect your decisions based on your own safety concerns. The company will assist anyone facing such concerns by referral to appropriate resources. Further, where appropriate, the company will work with you to ensure the individual does not gain access to the workplace.

All of these steps will allow Verisys to assist law enforcement and to create a safer workplace for the affected employee, all co-workers, and the public we serve.We understand the sensitivity of the information requested. Any information provided pursuant to this policy will be treated with discretion. Verisys will release this information only to those individuals within the organization or law enforcement agencies having a need to know.

Leave: Should an employee require time off in order to seek medical treatment, counseling, or legal assistance, obtain an order of protection, or locate safe shelter, related to domestic violence, stalking, or sexual assault, the company will provide reasonable unpaid leave as needed. For further information, please see the discussion of Protected Leave of Absence. No employee will be penalized, disciplined, or retaliated against for requesting or taking such leave.

The company takes such matters very seriously and will additionally provide information regarding community resources in relation to domestic violence, stalking, and sexual assault. For discussion of these matters, please contact the Human Resources Manager or a manager that you feel comfortable talking to. Furthermore, no employee will be penalized, disciplined, or retaliated against for bringing forth such concerns or for being a victim of violence.

Law Enforcement Assistance: Finally, many violent actions, such as assault, battery, stalking, and domestic/intimate partner violence, constitute criminal activities. In such cases, this organization will take all steps necessary to ensure that arrest and prosecution occurs of those perpetrating violence in our workplace.

PROTECTED LEAVES OF ABSENCE

Unpaid leaves of absence are available to employees for a variety of needs, provided that certain eligibility criteria are met. The employee’s work


site, state of residence and other legal requirements determine eligibility for a particular leave of absence.

The following is legal information that all employers need to provide. If you have any questions, please ask.

Verisys encourages employees in need of leave to contact Human Resources to discuss either an extended leave or intermittent leave, particularly where such leave may interfere with normal business or be outside the company attendance policy. State laws vary greatly. In addition to FMLA described below, employees may be eligible for other types of leave depending upon the location in which they are employed. Not all types of leaves are available in all areas that Verisys operates. The Human Resources department is the best source of information and will guide you through the process of requesting leave.

Employees on a leave of absence for any reason other than workers’ compensation or military leave must first use their available paid time off benefit. Benefits normally provided while working will continue to be provided at the same level. If leave is unpaid, you may be required to submit payment for your portion of benefit premiums. If you are no longer on an approved protected leave or have ceased paying benefit premiums, the benefit will be stopped, and if applicable, COBRA will be offered. Verisys will keep you informed in writing or, with your approval, via email regarding your status and changes to your benefits. A leave of absence request must be made in writing and submitted to Human Resources as soon as the need for such a leave is known.

Once health insurance benefits are exhausted, the employee may be eligible for COBRA continuation of coverage up to eighteen (18) months at his or her own cost. In such a case, appropriate notice will be provided of those rights and the individual’s ability to choose this option. The employee is responsible to respond to all notices. No other benefits are provided during this period. Thus, for example, employees receive no holiday pay and do not accrue paid time off benefits while on leave.

FAMILY AND/OR MEDICAL LEAVEBasic Provisions: Organizations employing at least fifty workers fall within the coverage of the federal Family and Medical Leave Act (FMLA). This act provides for up to twelve (12) weeks of job protected leave during a twelve (12) month period, based on an eligible employee’s serious health condition, or that of his or her immediate family member. An employee is eligible for family medical leave if he or she is employed in a location with at least fifty (50) employees within seventy-five (75) miles, he or she has worked at least twelve hundred and fifty (1,250) hours in the past twelve


(12) months of employment, and has worked for the company for at least twelve (12) months, not necessarily consecutively. Please note that some Verisys locations have fewer than 50 employees within seventy-five miles and although we are a covered entity, employees in those locations are not eligible for FMLA leave. At the time of drafting, those locations include Spokane, WA; Alexandria, VA; Boca Raton, FL and any single employee office.

Eligible employees may take leave for the following reasons:

1. To care for the employee’s child after birth or placement for adoption or foster care;

2. To care for the employee’s spouse, registered domestic partner, child or parent with a serious health condition;

3. A serious health condition of the employee which makes the employee unable to perform the job; or

4. A qualifying exigency arising out of the fact that the spouse, or a son, daughter, or parent of the employee is on active duty, has been notified of an impending call, or order to covered active duty in support of a contingency operation.

5. To care for a covered service member who is a spouse, son, daughter, parent, or next of kin with a serious injury or illness incurred in or aggravated by service in the line of duty.

A health condition is serious if it requires inpatient care, continued treatment of incapacity of three days or more, two or more treatments by a health care provider related to a subsequent recovery, or at least one treatment which results in a regimen of continuing treatment or incapacity due to pregnancy or chronic disease. Occasional illness such as colds, flu, upset stomach or headaches are not by themselves covered.

Generally, you are entitled to twelve weeks of job protected leave in a twelve-month period. The twelve-month period Verisys uses in determining an employee’s entitlement to leave is based on the rolling twelve-month period measured backward from the date the employee requested FMLA/WFMLA leave.

Exclusion of Highly Compensated Key Employees – Verisys may choose to exempt salaried employees in the highest paid ten (10) percent of all employees in the seventy-five (75) mile radius from reinstatement rights where leave taken by this individual would cause substantial and grievous economic injury to the organization. If this is the case, you will receive notice of this fact in writing from the company upon receipt of your request for FMLA.


Special FMLA provision for Military Personal/FamiliesEmployees who request qualifying exigency leave to spend time with a service member on rest and recuperation leave, may take up to a maximum of fifteen calendar days of leave.

A qualifying exigency leave may be provided for any of the following reasons:

1. Short notice deployment2. Military events and related activities3. Childcare and school activities4. Parental care5. Financial and legal arrangements6. Counseling7. Rest and recuperation8. Post-employment activities9. Additional activities.

An eligible employee needing leave to care for a covered military member, including both members of the Regular Armed Forces and the National Guard or Reserves may utilize up to twenty-six (26) workweeks of leave within a twelve-month period related to a serious injury or illness incurred or aggravated by service in the line of duty for which the spouse, child, parent, or next of kin is undergoing medical treatment, recuperation, or therapy, or other outpatient care. The single twelve-month period begins on the first day the eligible employee takes FMLA leave to care for a covered service member and ends twelve months after that date, regardless of the method used by the company to determine the employee’s leave entitlement for other FMLA-qualifying reasons. If an eligible employee does not use the full twenty-six workweeks of leave entitlement during this single twelve month period, the time remaining is forfeited. This leave entitlement is applied on a per-covered-service member, per-injury basis such that an eligible employee may be entitled to take more than one period of twenty-six workweeks of leave if the leave is to care for different covered service members or to care for the same service member with a subsequent serious injury or illness, except that no more than twenty-six workweeks of leave may be taken within any single twelve month period. Employees are entitled to a combined total of twenty six workweeks of leave for any FMLA-qualifying reason during the twelve-month period, provided that the employee is entitled to no more than twelve weeks of leave for one or more of the following: because of the birth of a son or daughter of the employee and in order to care for such son or daughter; because of the placement of a son or daughter with the employee for adoption or foster care; in order to care for the spouse, son, daughter, or parent with a serious health condition; because of the


employee’s own serious health condition; or because of a qualifying exigency.

Procedure for Requesting Family and Medical LeaveWhen an employee plans to take leave under this policy, the employee must give the company thirty (30) days’ notice. If it is not possible to give thirty (30) days’ notice, the employee must give as much notice as is possible. An employee undergoing planned medical treatment is required to make a reasonable effort to schedule the treatment to minimize disruptions to the operation of business.

Leave may be requested for a full entitlement period or less. It may also be requested for intermittent periods or to create a reduced work schedule. Where intermittent leave is considered, the employee should raise the matter with the company. In some cases, such as use of leave for bonding with an infant, the company must agree to the intermittent schedule.

The company may require that the employee provide certification of his or her own or a family member’s serious health condition by a qualified health care provider. The company may also request verification of a qualifying exigency where such leave is requested. This action allows the company to verify the need to leave. In such cases, a form will be provided the employee for response by a health care provider and must be returned by the employee to the company within fifteen calendar days. If the certification is incomplete, the employee will be given a reasonable opportunity to cure the deficiency. The failure to provide sufficient certification or any certification may result in delay of protected leave or denial of such leave.

Military Service Leave of AbsenceVerisys Corporation is a proud to fully recognize, honor, and enforce the Uniformed Services Employment and Reemployment Rights Act (USERRA). In general, employees that are currently servicing must provide advance written or verbal notice for all military duty related leaves of absence unless giving notice is impossible, unreasonable, or precluded by military necessity. Leave necessitated by duty in the armed forces is protected by USERRA. If you require leave for military duty, including annual military reserve training or other short-term duty related activity, you may utilize your accrued paid time off benefits while on leave. If you have no paid time off benefit available then the leave is considered an unpaid leave of absence. For military leave of absences of less than thirty days, your medical benefits will continue as if you were working. You will need to submit payment to the company for your share of the premium if applicable. If your service requires a leave of 31 days or more;


you will be offered COBRA at your own expense for up to twenty-four (24) months after the absence begins, or the period of service, whichever is shorter. For information regarding how to establish continuation of coverage and where to send premiums, please contact the Human Resources Manager. Upon return from service, health coverage will be reinstated without any additional waiting period or exclusions for pre-existing conditions.

Once service is completed and where service duration and request for reinstatement are within the prescribed timelines, you have a right to job restoration and benefits that would have been attained as if you had not been absent due to military service or in some cases a comparable job. You will work with your manager and the Human Resources Manager to arrange your return to work.

Anyone who applies for membership in, is or has been a member of, or is obligated to serve in the military is free from employment discrimination and retaliation. Therefore, Verisys will not deny such a person initial employment, reemployment, retention, promotion, or any benefit of employment based on this status.

For additional information about military leave, benefits while on leave, reinstatement or your duties regarding these matters, please contact the Human Resources Manager. For additional information about USERRA and the agency that enforces the USERRA, please see the USERRA poster on the company’s bulletin board.


EMPLOYEE ACKNOWLEDGMENT

ACKNOWLEDGEMENT OF RECEIPT AND UNDERSTANDINGOF EMPLOYEE HANDBOOK

My signature below shall acknowledge and certify that I have received, read and understand the Employee Handbook dated September 2014, a copy of which has been provided to me.

I understand that the handbook contains important information regarding the company’s general personnel policies and on my privileges and obligations as an employee. I have familiarized myself with the material in the handbook and understand that statements contained in the employee handbook are not a contract and that my employment with Verisys is at-will.

I acknowledge that I am responsible for complying with all the provisions of this handbook.

I understand that the company, at its sole and absolute discretion, may change the Employee Handbook at any time with or without prior notice. I have been informed that this handbook supersedes any and all prior versions of the handbook issued.

I understand the company’s communications systems may be accessed, monitored, reviewed and the contents of any nature disclosed to others by the company. I recognize that I have no expectation of privacy in these systems and consent to the company’s monitoring and disclosure practices.

_____ WA state employees, please initial here to confirm your receipt and understanding of the WA state addendum to this handbook.

____________________________________________(Employee Signature)

____________________________________________(Print Name)


Date of Signature: _______________________________

This page should be detached and placed in your employee file.


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Employee Handbook September 2014 without Washington State - Revised

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