Employee Handbook

For Exempt and Non-Exempt Corporate Staff Employees of…

HSS Group, Inc. Hospitality

Staffing Solutions,
LLC.

IHS Hospitality Services, Inc.

Rev 1.2 2010

HSS Employee Handbook

DISCLAIMER

DUE TO OUR CHANGING OPERATIONAL NEEDS, THIS HANDBOOK

SHOULD NOT BE CONSIDERED ALL-INCLUSIVE. IT OFFERS GENERAL
GUIDELINES ONLY, AND IS NOT A CONTRACT, EXPRESSED OR IMPLIED.
THE EMPLOYMENT RELATIONSHIP BETWEEN YOU AND OUR COMPANY
IS “AT WILL” AND CAN BE TERMINATED BY EITHER YOU OR THE
COMPANY AT ANY TIME FOR ANY REASON WITH OR WITHOUT NOTICE.
THE COMPANY MAY, IN ITS SOLE DISCRETION, INTERPRET, REVISE,
MODIFY OR VARY FROM ANYTHING STATED IN THIS HANDBOOK,
EXCEPT FOR THE POLICY OF EMPLOYMENT AT-WILL, WHICH MAY NOT
BE MODIFIED EXCEPT IN A WRITING SIGNED BY THE PRESIDENT OF THE
COMPANY AND YOU. THIS HANDBOOK REPLACES AND SUPERSEDES
ANY PRIOR POLICIES OR GUIDELINES ON THE SAME TOPICS COVERED
BY THIS HANDBOOK. NO REPRESENTATION MADE BY A MANAGEMENT
REPRESENTATIVE, AT THE TIME OF HIRE OR SUBSEQUENTLY, MAY BE
INTERPRETED AS A CONTRACT BETWEEN THE COMPANY AND ANY OF
ITS EMPLOYEES. WE WILL DO OUR BEST TO KEEP YOU INFORMED OF
ANY CHANGES THAT MAY AFFECT YOU.

Rev 1.2 Page 2

HSS Employee Handbook

TABLE OF CONTENTS
TABLE OF CONTENTS ......................................................................... 1

INTRODUCING HSS............................................................................ 4

AN OVERVIEW OF HSS ............................................................................. 6

HANDBOOK INTRODUCTION ........................................................................ 6
CUSTOMER RELATIONS .............................................................................. 7

GENERAL EMPLOYMENT POLICIES ..................................................... 8

OPEN DOOR POLICY ................................................................................. 9

EQUAL EMPLOYMENT OPPORTUNITY ............................................................... 9
BUSINESS ETHICS AND CONDUCT ............................................................... 10
RELATIVES AND PERSONAL RELATIONSHIPS ................................................... 11
IMMIGRATION LAW COMPLIANCE ................................................................ 12
CONFLICTS OF INTEREST ......................................................................... 12
OUTSIDE EMPLOYMENT ............................................................................ 13
NON-DISCLOSURE ................................................................................. 14
HIPAACOMPLIANCE................................................................................15
FACTA COMPLIANCE...............................................................................15
DISABILITY ACCOMMODATION (ADA) .......................................................... 15
JOB POSTING AND EMPLOYEE REFERRALS ...................................................... 16
LIFE-THREATENING ILLNESSES IN THE WORKPLACE .......................................... 17
AFFIRMATIVE ACTION ............................................................................. 17
CORPORATE COMMUNICATIONS & MEETINGS .................................................. 18
REHIRE POLICY ..................................................................................... 18

COMPANY POLICIES & PRACTICES .................................................. 19

EMPLOYMENT CLASSIFICATIONS ................................................................. 20

PERSONNEL RECORDS ............................................................................. 21
EMPLOYMENT REFERENCE CHECKS .............................................................. 21
PERSONAL INFORMATION CHANGES ............................................................. 22
EMPLOYMENT APPLICATIONS ..................................................................... 22
PERFORMANCE APPRAISALS & SALARY REVIEWS .............................................. 22
SALARY ADMINISTRATION ........................................................................ 23
PROMOTION & TRANSFERS ....................................................................... 23

Rev 1.2 Page 1

HSS Employee Handbook

EMPLOYEE BENEFIT PROGRAMS ...................................................... 24

BENEFITS OVERVIEW .............................................................................. 25

COMPANY PAID HOLIDAYS ........................................................................ 26
WORKERS' COMPENSATION INSURANCE ........................................................ 27
TIME OFF TO VOTE ................................................................................. 27
BEREAVEMENT LEAVE .............................................................................. 28
RELOCATION BENEFITS ........................................................................... 28
JURY DUTY .......................................................................................... 29
WITNESS DUTY .................................................................................... 29
BENEFITS CONTINUATION (COBRA) ........................................................... 30
EDUCATIONAL ASSISTANCE ...................................................................... 30
PAID TIME OFF (PTO) ............................................................................ 31
MEDICAL & DENTAL INSURANCE ................................................................. 33
LIFE AND AD&D INSURANCE..................................................................... 33
SHORT-TERM DISABILITY ........................................................................ 34
LONG-TERM DISABILITY .......................................................................... 34
FEDERAL AND STATE EMPLOYMENT BENEFITS ................................................. 34

PAYROLL POLICIES & PRACTICES.................................................... 37

TIMEKEEPING ....................................................................................... 38
PAYDAYS ............................................................................................ 38
OVERTIME PAY ..................................................................................... 39
EMPLOYMENT TERMINATION ...................................................................... 41
PAY ADVANCES ..................................................................................... 41
ADMINISTRATIVE PAY CORRECTIONS ........................................................... 42
PAY DEDUCTIONS AND SETOFFS ................................................................. 42

WORKING CONDITIONS .................................................................. 43

SAFETY .............................................................................................. 44
WORK SCHEDULES ................................................................................ 44
BREAKS ............................................................................................. 45
USE OF PHONE AND MAIL SYSTEMS ............................................................. 45
SMOKE FREE WORKPLACE ......................................................................... 46
MEAL PERIODS ..................................................................................... 46
USE OF COMPANY EQUIPMENT ................................................................... 47
EMERGENCY CLOSINGS & EVACUATIONS ....................................................... 47
BUSINESS TRAVEL EXPENSES .................................................................... 48
VISITORS IN THE WORKPLACE ................................................................... 48
COMPUTER, SOFTWARE, INTERNET AND E-MAIL USAGE ..................................... 49
SOCIAL NETWORKING ............................................................................. 54
WORKPLACE MONITORING ........................................................................ 54
SECURITY INSPECTIONS .......................................................................... 55
WORKPLACE VIOLENCE PREVENTION ............................................................ 56

Rev 1.2 Page 2

HSS Employee Handbook

SUGGESTIONS FOR IMPROVEMENT .............................................................. 57

LEAVE OF ABSENCE.......................................................................... 58

FAMILY AND MEDICAL LEAVE ..................................................................... 59

UNPAID PERSONAL LEAVE ........................................................................ 67
MILITARY LEAVE ................................................................................... 67
PREGNANCY-RELATED ABSENCES ............................................................... 68

EMPLOYEE CONDUCT POLICIES ....................................................... 69

STANDARDS OF CONDUCT ........................................................................ 70

DRUG AND ALCOHOL USE ........................................................................ 71
SEXUAL AND OTHER UNLAWFUL HARASSMENT ................................................ 72
ATTENDANCE AND PUNCTUALITY ................................................................. 73
PERSONAL APPEARANCE .......................................................................... 74
RESIGNATION ...................................................................................... 75
SOLICITATION AND DISTRIBUTION .............................................................. 75
UNION FREE WORKPLACE ......................................................................... 75
DISCIPLINARY ACTION ............................................................................ 76
WORKPLACE ETIQUETTE .......................................................................... 77
FACILITIES & SAFETY ............................................................................. 78

HANDBOOK ACKNOWLEDGMENT FORM ............................................ 80

Rev 1.2 Page 3

HSS Employee Handbook

INTRODUCING HSS

Rev 1.1 Page 4

HSS Employee Handbook

An Overview of HSS
HSS specializes in providing service personnel to the hotel industry. We are
headquartered in Atlanta, Georgia with four regional locations. Currently, we
have over 7,000 employees working in major hotels in Atlanta, Austin,
Baltimore, Biloxi, Boston, Charleston, Chicago, Cincinnati, Columbus, Dallas,
Dayton, Denver, Detroit, Green Bay, Ft. Lauderdale, Indianapolis, Kansas City,
Lexington, Louisville, Miami, Milwaukee, Myrtle Beach, Nashville, New Orleans,
Orlando, Palm Springs, Philadelphia, Phoenix, San Antonio, St. Louis, Tampa,
Tucson, and Washington D.C.. Additional markets are being developed
constantly. HSS provides associates to high-end, full-service hotels, convention
and airport properties.

HSS is a female-owned business committed to providing work environments that

assure fairness, dignity and respect for all employees. We are an equal
opportunity employer. Our policies strictly prohibit discrimination on the basis of
race, color, religion, sex, age, national origin, disability or any other basis
protected by law.

Handbook Introduction
This Employee Handbook describes the employment policies applicable to all
Corporate Exempt and Non-Exempt U.S. employees and locations. As noted
previously, this Handbook is a guide only, and is not intended to be a contract of
employment, expressed or implied. Although we hope your employment
relationship will be long-term, employment with HSS is not for a guaranteed or
set term, and either you or the Company may terminate the employment
relationship at any time, for any reason This relationship, often referred to as “at
will” employment, may not be changed by anyone except the president of the
Company, who may only do so in writing.

You should read and understand all provisions of the handbook. It describes
many of your responsibilities as an employee and what you can expect from us
as an employer. One of our objectives is to provide a work environment that is
conducive to both personal and professional growth.

No employee handbook can anticipate every circumstance or question about

policy. As HSS continues to grow and, as business needs, employment
legislation and economic conditions change, the Company may revise,
supplement, or rescind any policies or portion of the handbook.

Should there be any discrepancy between this handbook and any underlying
benefit plan, policy or procedure, the plan, policy or procedure shall govern.
This Employee Handbook supersedes all previous HSS Employee Handbooks.
Further, since this handbook is intended to provide guidance at all locations,
state or local will govern in the event of a conflict.

Rev 1.1 Page 6

HSS Employee Handbook

Customer Relations

External Customers
Without customers we could not exist. Every employee represents the Company
to our customers and the public. The way we do our jobs presents an image of
our entire organization. Customers judge all of us by how they are treated with
each employee contact. Therefore, our first business priority is to assist any
customer or potential customer. Always be courteous, friendly, helpful, and
prompt in the attention you give to customers.

Our personal contact with the public, our manners on the telephone, and the
communications we send to customers are a reflection not only of ourselves, but
also of the entire company. Positive customer relations not only enhance the
public's perception or image of the Company, but also pay off in greater
customer loyalty and increased sales, profit and job security.

Internal Customers
The Company believes in harmonious working relationships. The Company needs
your help in making each workday enjoyable and rewarding. Your first
responsibility is to know your duties and to perform them promptly, accurately,
and pleasantly. You are, of course, expected to cooperate with management
and your fellow employees and to maintain a good team attitude.

Rev 1.2 Page 7

HSS Employee Handbook

GENERAL EMPLOYMENT POLICIES

Rev 1.2 Page 8

HSS Employee Handbook

Open Door Policy

Anytime people work together, dissatisfactions and misunderstandings may
occur. Someone may feel that he/she has not been treated fairly, or believes
that a mistake has been made in the administration of a benefit or rule.

If there is anything about your job that is bothering you, let's get it out in the
open and talk about it. Discuss it frankly with us and we'll do everything we can
to help you "iron it out." You can be sure that your complaint will be handled in
an open and fair manner. Three steps that you may take in resolving a problem
are:

1. First, take up the issue with your supervisor. Most difficulties can be
resolved in this step.

2. If you are not satisfied with your supervisor's response, or for some
reason do not wish to talk with the supervisor, you may take the problem
to your vice president.

3. If there still is any confusion or question, you may take the problem to
the Director of Human Resources.

4. Finally, if for any reason you cannot resolve your problem at that step,
arrangements will be made for you to speak with the President of the
Company.

We are anxious to hear from you on any subject. You do not have to have a
problem to be heard. As a member of our team, we want you to have every
opportunity to discuss your problems or ideas freely, and for you to feel that you
are being treated fairly.

Your relationship with the Company will not be jeopardized as a result of using
these procedures in good faith. Our sincere desire is to maintain open channels
of communication that will promote a harmonious and productive work
environment.

Equal Employment Opportunity

In order to provide equal employment and advancement opportunities to all
individuals, employment decisions at HSS are based on merit, qualifications, and
abilities. The Company does not discriminate on the basis of race, color, creed,
religion, sex, national origin, age, citizenship, disability, or any other
characteristic protected by federal or state law.

HSS will make reasonable accommodations for qualified individuals with known
disabilities, unless doing so would result in an undue hardship. This policy
governs all aspects of employment.
Rev 1.2 Page 9
HSS Employee Handbook

At HSS, equal employment is not only a legal commitment; it is a moral

commitment as well. If you have questions or concerns about any type of
discrimination in the workplace, you are encouraged to bring these questions or
issues to the attention of your manager, vice president, higher-level department
manager or the Human Resources Department. The Company will investigate
and attempt to resolve the matter. Employees can raise concerns and make
reports without fear of reprisal. Anyone found to be engaging in any type of
unlawful discrimination will be subject to disciplinary action, up to and including
termination of employment.

Business Ethics and Conduct

The success and reputation of the Company are built upon the principles of fair
dealing and ethical conduct of our employees. Our reputation for integrity and
excellence requires careful observance of the spirit and letter of applicable laws
and regulations, as well as a scrupulous regard for the highest standards of
conduct and personal integrity.

HSS will comply with applicable laws and regulations and expects its directors,
officers, and employees to conduct business in accordance with the letter, spirit,
and intent of all relevant laws, and to refrain from any illegal, dishonest, or
unethical conduct.

In general, the use of good judgment, based on high ethical principles, will guide
you with respect to lines of acceptable conduct. If a situation arises when it is
difficult to determine the proper course of action, the matter should be
discussed openly with your manager for advice and consultation. If you do not
feel comfortable discussing the matter with your manager, you should raise the
issue with the Human Resources Department.

Compliance with business ethics and conduct is the responsibility of every

Company employee. Disregarding or failing to comply with this standard of
business ethics and conduct could lead to disciplinary action, up to and including
immediate termination of employment.

Employees are required to report any suspected or known unethical or business

practices violations to Human Resources, or a member of the Executive Staff, or
the Corporate Ethic Compliance Officer who is the Human Resources Director.
Employees may raise questions or reports about suspected unethical behavior or
business practices without fear of retaliation.

Rev 1.2 Page 10

HSS Employee Handbook

Relatives and Personal Relationships

The Company recognizes that close personal relationships may exist in the
workplace. These relationships may include, but are not limited to, consensual
relationships and immediate family members. Such relationships cannot be
tolerated when they adversely affect the workplace causing unnecessary
tension, strain, favoritism, or other morale problems.

Examples of what may be considered an adverse effect include, but not limited
to:

 A personal relationship between a supervisor and a subordinate; or

 Unreasonably interfering with work performance or ability to conduct oneself
in a professional or business-like manner; or
 Unreasonably interfering or affecting the work environment of other
employees; or
 Creating a conflict of interest; or
 Situations that could potentially result in a claim of unlawful discrimination,
harassment or retaliation.

A relative is defined as any person who is related by blood or marriage. A

dating relationship is defined as a relationship that may be reasonably expected
to lead to the formation of a consensual "romantic" relationship. This policy
applies to employees without regard to the gender or sexual orientation of the
individuals involved.

Unless approved by one of the members of the Executive Team in advance,

relatives of current employees may not occupy a position that will involve
working directly for or supervising their relative. Individuals involved in a dating
relationship with a current employee may also not occupy a position that will
involve working directly for or supervising the employee with whom they are
involved in a dating relationship. The Company will take prompt action if an
actual or potential conflict of interest arises involving relatives or individuals
involved in a dating relationship.

If a relative relationship or dating relationship is established after employment,

it is the responsibility and obligation of the employee to disclose the relationship
to the immediate manager in writing, who must then disclose the existence of
the relationship to upper management. HSS will make employment decisions as
necessary to avoid an adverse effect on the Company, it employees, its working
environment or its customers. Such action may include the transfer or
termination of an employee or supervisor.

In cases where a conflict, or the potential for conflict, arises because of the
relationship between employees, even if there is no line of authority or reporting
involved, the employees may be separated by reassignment or terminated from
employment if deemed appropriate by management.
Rev 1.2 Page 11
HSS Employee Handbook

Immigration Law Compliance

The Company is committed to employing only United States citizens and aliens
who are authorized to work in the United States. We do not discriminate on the
basis of citizenship or national origin.

In compliance with the Immigration Reform and Control Act of 1986, each new
employee, as a condition of employment, must complete the Employment
Eligibility Verification Form I-9 and present documentation establishing identity
and employment eligibility. If you, at any time, cannot verify your right to work
in the United States, the Company may be obliged to terminate your
employment. Per Customer compliance, state or local requirements E-Verify
may be used to meet these needs.

Former employees who are rehired must also complete the form if they have not
completed an I-9 with the Company within the past three (3) years, or if their
previous I-9 is no longer retained or valid. Recertification will also be required
when work authorization documents expire.

Employees with questions, or seeking more information on immigration law

issues, are encouraged to contact the Human Resources Department. Employees
may raise questions or complaints about immigration law compliance without
fear of reprisal.

Conflicts of Interest
Each of us has an obligation to conduct business within guidelines that prohibit
actual or potential conflicts of interest. You should not have, either directly or
indirectly, any financial or other interest in any entity that is a supplier, client or
competitor of the Company. Your outside employment or personal service to
any other entity must not affect your work efficiency or ability to act in the best
interests of the Company.

An actual or potential conflict of interest occurs when you are in a position to

influence a decision that may result in a personal gain for you or your relative as
a result of the Company’s business dealings. A relative is defined as any person
who is related to you by blood or marriage, or whose relationship with you is
similar to that of persons who are related by blood or marriage.

No "presumption of guilt" is created by the mere existence of a relationship with

outside firms. However, if you have any influence on transactions involving
purchases, contracts, or leases, it is imperative that you disclose to an officer of
the Company as soon as possible the existence of any actual or potential conflict
of interest so that safeguards can be established to protect all parties.

Rev 1.2 Page 12

HSS Employee Handbook

The offer or acceptance of certain courtesies of nominal value, generally not to

exceed $200.00, per calendar year from suppliers or clients, such as meals,
entertainment or gifts may be acceptable as long as they do not affect the
business relationship. However, unacceptable personal gain is realized when
you or your relative has a significant ownership in a firm with which HSS does
business, or when you or your relative receives any kickback, bribe, substantial
gift, or special consideration as a result of any transaction or business dealings
involving the Company. Advance approval from management is required before
you may accept or solicit a gift of any kind from a customer, supplier or vendor.
You are not permitted to give unauthorized gifts to suppliers, vendors or
customers. You may give certain promotional premiums such as T-shirts, coffee
mugs or other items imprinted with the HSS logo or sales information, as
appropriate.

This establishes only the framework within which the Company expects the
business to operate. The purpose of these guidelines is to provide general
direction so you can seek further clarification on issues related to the subject of
acceptable standards of operation. Contact Human Resources for more
information or questions about conflicts of interest.

Outside Employment
You may hold outside jobs as long as you meet the performance standards of
your job with the Company. Employees will be judged by the same performance
standards, and will be subject to the Company’s scheduling demands, regardless
of any existing outside work requirements. Except as otherwise prohibited by
State law, full time Managers and Supervisors may not hold other full time
employment outside the company.

If HSS determines that your outside work interferes with your performance, or
the ability to meet your work requirements of the Company, you may be asked
to terminate the outside employment if you wish to remain with HSS. In any
case other employment may not be in the hospitality business.

Outside employment that constitutes a conflict of interest is prohibited. You may

not receive any income or material gain from individuals outside the Company
for materials produced, or services rendered, while performing your job. An
employee must request approval from their manager prior to accepting outside
employment.

Rev 1.2 Page 13

HSS Employee Handbook

Non-Disclosure
All information regarding HSS, its customers, suppliers, vendors, products and
operations is to be held in the strictest confidence. The Confidentiality
Agreement you signed is a condition of employment with the Company. The
Company may require you to sign new Confidentiality Agreement as a condition
of continued employment. Under this agreement, you cannot use or disclose
business or customer information that is not generally available to the public,
either during employment or after separation of service from the Company. Any
information learned or developed during the course of work is the property of
HSS and is to be used solely for the benefit of the Company and its customers.

The protection of confidential business information and trade secrets is vital to

the interests and the success of the Company. Such confidential information
includes, but is not limited to, the following examples:

 Competitor information
 Computer programs and codes
 Customer information
 Corporate financial information
 Health Information of anyone (HIPAA)
 Information on Identity of anyone (FACTA)
 Legal affairs
 Marketing strategies
 Material pricing information
 New materials research
 Pending projects and proposals
 Pricing
 Proprietary production processes
 Research and development strategies
 Sales Projects or Reports
 Technological data
 Technological prototypes
 Vendor Information

Employees who improperly use or disclose trade secrets or confidential business

information will be subject to disciplinary action, up to and including immediate
termination of employment and legal action, even if they do not actually or
directly benefit from the disclosed information. Do not make copies or remove
any HSS’s records, reports or documents without prior management approval. If
someone questions you, and you are concerned about the appropriateness of
providing information in response, you are not required to answer. Instead,
refer the request to your manager.

Rev 1.2 Page 14

HSS Employee Handbook

HIPAA Compliance
(Health Insurance Portability and Accountability
Act)
The Company will take necessary action to maintain policies and procedures
concerning privacy of, and access to, employee protected health information. If
you obtain, by any means, information about another employee’s health, you
are to keep it confidential, and if necessary, only provide the information to
those who need to know, i.e. such as the immediate supervisor or VP or CEO.
The Chairman has delegated the PHI (Protected Health Information) privacy
program management to the Company’s Head of Human Resources. Please
notify that person if you are concerned about compromised information.

FACTA Compliance
(Fair and Accurate Credit Reporting Act)
The Company will take necessary action to maintain policies and procedures
concerning privacy of, and access to, protected personal information. If you
obtain, by any means, information about another individual’s identity, you are to
keep it confidential, and if necessary, only provide the information to those who
need to know, such as the immediate supervisor, VP or CEO. The information
that is considered confidential are items such as SSAN’s, Credit Card Numbers,
Drivers Licenses, Maiden Names, Employees and other Individuals Personal
Information, Bank Account Numbers, Medical documentation, and other such
information. The Chairman has delegated the FACTA privacy program
management to the Company’s Head of Human Resources. Please notify that
person if you are concerned about compromised information. You can be sued
individually if you disseminate identity information inappropriately. You also may
be disciplined to include immediate dismissal.

Disability Accommodation (ADA)

HSS is committed to complying fully with the Americans with Disabilities Act
(“ADA”) and ensuring equal opportunity in employment for qualified persons
with disabilities. All employment practices and activities are conducted on a
non-discriminatory basis. All employment decisions are based on the merits of
the situation in accordance with defined criteria, not the disability of the
individual. Moreover, the Company will not discriminate against any qualified
employee or applicant because he or she is related to or associated with a
person with a disability. Reasonable accommodation is available to all qualified
disabled employees, unless to do so would result in an undue hardship or
present significant operational problems for HSS.

Rev 1.2 Page 15

HSS Employee Handbook

If an employee needs to request a reasonable accommodation because of a

disability, he or she should contact his or her immediate supervisor or the
Human Resources Department.

This policy is neither exhaustive nor exclusive. HSS is committed to taking all
other actions necessary to ensure equal employment opportunities for persons
with disabilities in accordance with the ADA and all other applicable federal,
state, and local laws.

Qualified individuals with disabilities are entitled to equal pay and other forms of
compensation (or changes in compensation), as well as in job assignments,
classifications, organizational structures, position descriptions, lines of
progression, and seniority lists. Leaves of absence are made available to
employees on an equal basis, regardless of disability status.

HSS is also committed to not discriminating against any qualified employees or

applicants because they are related to, or associated with, a person with a
disability. The Company will follow any state or local law that provides
individuals with disabilities greater protection than the ADA.

Individuals with physical or mental disabilities should be treated in a respectful,

non-discriminatory manner. Disabilities will be treated in a confidential manner,
to the greatest extent possible.

This policy is neither exhaustive nor exclusive. HSS is committed to taking other
actions necessary to ensure equal employment opportunity for persons with
disabilities in accordance with the ADA and all other applicable federal, state,
and local laws.

Job Posting and Employee Referrals

Job Posting Program

HSS provides opportunities to advance within the Company according to skills,
effort and experience. Job posting is a way to inform you of openings, and to
identify qualified and interested applicants who might not otherwise be known to
the hiring manager. Other recruiting sources may also be used. The Company
reserves its discretionary right to not post a particular opening.

Generally, job openings below Manager are posted on the Bulletin Board. Each
job posting notice will include the job title, department, location, job summary,
essential duties, and qualifications. In order to be considered for a posted
position, you must possess the required skills, experience and qualifications. If
you are interested in being considered for an opening, apply by notifying your
direct manager, who will then notify Human Resources.

Rev 1.2 Page 16

HSS Employee Handbook

Employee Referral Program

HSS also encourages you to identify qualified friends or acquaintances who may
be interested in employment opportunities with the Company. If you refer an
eligible candidate that is subsequently hired, you may be eligible for a referral
bonus payment. A bonus eligible position will be identified to employees when
the Company announces the posting.

You should obtain permission from the individual you are referring before
making a referral. Also, please share your knowledge of HSS to ensure the
person has an idea of the work environment. Please forward the applicant’s
cover letter and resume to the Human Resources Department for only open
positions.

Life-Threatening Illnesses in the Workplace

Employees with life-threatening illnesses, such as cancer or heart disease often
wish to continue their normal pursuits, including work, to the extent allowed by
their condition. HSS supports these endeavors as long as employees are able to
meet acceptable performance standards or work related health standards in food
preparation. As in the case of other disabilities, the Company will make
reasonable accommodations, in accordance with legal requirements, to allow
qualified employees with life-threatening illnesses to perform the essential
functions of their jobs.

Medical information on individual employees is treated confidentially. The

Company will take reasonable precautions to protect such information from
inappropriate disclosure. Managers and other employees have a responsibility to
respect and maintain the confidentiality of employee medical information.
Anyone inappropriately disclosing such information is subject to disciplinary
action, up to and including termination of employment.

Employees with questions or concerns about life-threatening illnesses are

encouraged to contact the Human Resources Department for information and
referral to appropriate services and resources.

Affirmative Actions
In addition to HSS’s policy on Equal Employment Opportunity, the Company also
adopts a policy on affirmative action. In accordance with applicable federal,
state and local law, HSS is committed to ensuring that its hiring decisions are
made from an applicant pool, which reflects the diversity of the communities
represented and served by the Company. To the extent required by law, HSS
will take affirmative steps to promote the inclusion of women, minorities,
disabled individuals, Vietnam Era Veterans, disabled veterans any other
acknowledged group in its applicant pool. In addition, the Company is
committed to encouraging the full and equal participation of such persons in all
aspects and levels of the Company.
Rev 1.2 Page 17
HSS Employee Handbook

Corporate Communications & Meetings

The success of HSS depends on the relationship between the Company, our
employees, customers, suppliers and the general public. Public affairs and
Company communications are the responsibility of The Executive Team. Should
you receive a call from any publication, newspaper, government agency or other
external media asking for a statement on behalf of the Company, thank the
caller for their interest in HSS, communicate the Company policy regarding
inquiries, and refer them to a member of The Executive team.

Official Company bulletin boards are maintained as an important information

source. Bulletin boards are to be used solely for Company postings. Please
make it a habit to check the bulletin boards frequently to be sure you are
familiar with the information posted there.

On occasion, we may request that you attend a mandatory Company-sponsored

meeting. If this is scheduled during your regular working hours, your
attendance is required. By law we are not required to paid you for the time you
spend traveling to and from the meeting, as it would relate to normal
commuting, as well as, time spent at the meeting.

Rehire policy

Depending on the circumstances, HSS may consider a former employee for

reemployment. Such applicants are subject to the Company’s usual pre-
employment and selection procedures. To be considered, a former employee
must have been in good standing at the time of separation from HSS. All rehires
will be approved by the President prior to rehire.

If you were an employee of HSS with at least twelve (12) months of continuous
employment, and are rehired within six (6) months of your termination date,
your original service date for employee benefit and accrual purposes will be
retained. If you worked for HSS for less than twelve (12) months, or were
separated from service for more than six (6) months, you will be treated as a
newly hired employee.

Rev 1.2 Page 18

HSS Employee Handbook

COMPANY POLICIES & PRACTICES

Rev 1.2 Page 19

HSS Employee Handbook

Employment Classifications
It is the intent of HSS to clarify the definitions of employment classifications so
that employees understand their employment status and benefit eligibility.

This Handbook is strictly for the Corporate Exempt and non-Exempt employees.
Further these employees are those who work in the corporate office in a shared
services position such as Finance, Payroll, Billing HR, Marketing, Sales, or is in a
capacity of Supervisor and above working in the field. Each employee is
designated as either nonexempt or exempt from federal and state wage and
hour laws. Nonexempt employees are entitled to overtime pay under the
specific provisions of federal and state laws. Exempt employees receive a fixed
salary designed to compensate them for all hours worked. Exempt employees
therefore do not receive additional compensation for overtime work. An
employee's exempt or nonexempt classification may be changed only upon
approval by Human Resources. In addition to the above designation, each
employee belongs to one of the following employment classifications:

CORPORATE REGULAR FULL-TIME employees are those who are not in a

temporary status and who are regularly scheduled to work HSS’s full-time
schedule. Regular full-time employees normally are scheduled to work 40 hours
per week, but must be scheduled to work at least 32 hours per week. They may
be eligible to participate in the Company’s benefit package, subject to the terms,
conditions, and limitations of each benefit program.

CORPORATE REGULAR PART-TIME employees are those who are not

assigned to a temporary status and who are regularly scheduled to work fewer
than 32 hours per week. Regular part-time employees may be eligible to
participate in the Company’s benefit package, on a prorated basis, subject to the
terms, conditions, and limitations of each benefit program.

CORPORATE TEMPORARY employees are those who are hired as interim

replacements, to temporarily supplement the work force, or to assist in the
completion of a specific project. Employment assignments in this category are
of a limited duration. Employment beyond any initially stated period does not in
any way imply a change in employment status. Temporary employees retain
that status unless and until notified of a change. While temporary employees
receive legally mandated benefits (such as Social Security and workers’
compensation insurance), they are ineligible to participate in HSS’s other benefit
programs.

CONTRACTORS are individuals who are working for HSS under a contract on
either an individual or external company basis. Contract employees are not
eligible for any mandated or Company sponsored benefit plans. They are not
considered employees of the company for any reason.

Rev 1.2 Page 20

HSS Employee Handbook

Personnel Records

Your Personnel File

To help you receive proper benefits and timely notices, we keep detailed records
concerning your employment. These records contain such vital data as your
home address, telephone number, dependents, marital status and insurance
beneficiary. So that you may take advantage of all the benefits due you and to
comply with government requirements, the Company must keep them up-to-
date. Therefore, it is important that you notify us of any changes.

Medical/Benefit Records
Medical/benefit records will be kept in a separate confidential file. HSS
maintains this information in the strictest confidence and will not use or disclose
medical information about you, without you having first signed an authorization
form permitting such use or disclosure. However, general group medical
information may be disclosed in non-individual specific statements as required to
obtain and maintain group insurance plans.

Employment Reference Checks

Former & Current Employee References

The Payroll Department will respond to reference check inquiries from other
employers or financial institutions. Responses to such inquiries will confirm dates
of employment and last position held. Except as otherwise deemed necessary
by HSS, or as required by law, salary and all other employment data is
confidential and generally will not be released without your written
authorization. Any requests regarding past or present employees must be
directed to the Human Resources Department. The Company will not provide
recommendation letters.

Rev 1.2 Page 21

HSS Employee Handbook

Personal Information Changes

The Human Resources Department is charged with handling employee records
and related personnel administration functions at HSS.

Current personal information is important and can affect timely and accurate
processing of pay, tax withholding, benefits and Company communications. You
are responsible for promptly notifying Human Resources when there are changes
in your name, address, telephone number, marital status, beneficiaries,
dependents and scholastic achievements.

For benefit plan purposes, you are required to notify the Company of family
status changes within thirty (30) days of an event that causes you to acquire or
lose dependents. For more information about family status changes, see the
benefits section of the handbook or your benefit enrollment materials.

Employment Applications
HSS relies upon the accuracy of information contained in the employment
application, as well as the accuracy of other data presented throughout the
hiring process and employment. Any misrepresentations, falsifications, or
material omissions in any of this information or data may result in the exclusion
of the individual from further consideration for employment or, if the person has
been hired, discipline up to and including immediate termination of employment.

Performance Appraisals & Salary Reviews

Performance Appraisals
You and your manager are strongly encouraged to discuss job performance and
goals on an informal, day-to-day basis. A performance evaluation may also be
conducted in the event of a promotion or change in duties and responsibilities.
A formal performance evaluation generally is conducted annually to provide you
and your manager the opportunity to discuss job tasks, identify and correct
weaknesses, encourage and recognize strengths, and discuss positive,
purposeful approaches for meeting goals. The performance appraisal process
should be a collaborative, two-way communication in which you are able to
discuss your interests and future goals. Your manager is interested in helping
you to progress and grow in order to achieve personal and career goals. During
this time, a merit pay adjustment may be warranted, but not guaranteed.

Rev 1.2 Page 22

HSS Employee Handbook

Salary Administration
The goal of our compensation program is to attract new employees and
encourage well-performing employees to stay with our organization. With this in
mind, our compensation program is built to balance both employee and
Company needs.

The salary administration program at the Company was created to achieve

consistent pay practices, comply with federal and state laws, mirror our
commitment to Equal Employment Opportunity, and offer competitive salaries
within our labor market. Salary decisions and reviews are made without regard
to race, color, citizenship status, national origin, gender, age, religion, disability
or any other characteristic protected by law.

Several factors may influence your rate of pay and may increase or decrease at
any time. Some of the items the Company considers are the essential duties
and responsibilities of the job, market data on pay practices of other employers,
internal equity among employees in the same jobs, as well as, individual and
Company performance. HSS periodically reviews its salary administration
program and restructures it as necessary. Merit-based pay adjustments may be
awarded in conjunction with superior employee performance documented by the
performance evaluation process, but any pay adjustments will be made at the
discretion of the Company.

We encourage you to bring any pay-related questions or concerns to the

attention of your manager, who is responsible for the fair administration of
departmental pay practices. The Human Resources Department is also available
to answer specific questions about the salary administration program.

Promotions and Transfers

It is our goal to provide all employees with opportunities for advancing to other
positions within the Company. Approval of promotions or transfers depends
largely on training, experience and performance in your current position.
Promotions and transfers are made without regard to race, color, citizenship
status, national origin, gender, age, religion, disability or any other factor
protected by law.

Managers should not approach employees in other departments to determine

interest or abilities in open positions without first discussing the position with
Human Resources. Human Resources will facilitate potential interdepartmental
transfers and/or promotions by contacting the employee's manager first.
Likewise, employees who are interested in interdepartmental promotion
opportunities should contact Human Resources before approaching a manager in
another area of the Company.

Questions or concerns regarding promotional opportunities should be directed to

the Human Resources Department.
Rev 1.2 Page 23
HSS Employee Handbook

EMPLOYEE BENEFIT PROGRAMS

Rev 1.2 Page 24

HSS Employee Handbook

Benefits Overview
Eligible employees at HSS are provided a wide range of benefits. A number of
the programs (such as Social Security, workers' compensation, and
unemployment insurance) cover employees in the manner prescribed by law.
Benefits eligibility depends upon a variety of factors, including employee
classification (as described in the employment classification section). The
Human Resources Department can help you determine eligibility for benefit
programs.

The following benefit programs are available to eligible employees:

 Benefit Conversion at Termination (Per Plan)

 Bereavement Leave
 Cafeteria Plan (125C Plan)
 COBRA
 Dental Insurance
 Educational Financial Assistance
 Family Medical Leave of Absence (Leave Section)
 Flextime Scheduling
 Company Paid Holidays
 Jury Duty Leave
 Life and AD&D Insurance
 Long-Term Disability
 Medical Insurance
 Military Leave (Leave Section)
 Paid Time Off (PTO)
 Pharmacy/Prescription Drug Coverage
 Relocation Assistance
 Short-Term Disability
 Social Security
 Unemployment Insurance
 Supplemental Life Insurance
 Vision Care
 Voting Time Off
 Witness Duty Leave
 Worker Compensation Insurance

Some benefit programs require contributions from the employee, but most are
partially or fully paid by the Company.

Rev 1.2 Page 25

HSS Employee Handbook

Company Paid Holidays

The company provides 7 paid holidays that are typically:
 New Year's Day
 Memorial Day
 Independence Day
 Labor Day
 Thanksgiving
 Friday after Thanksgiving
 Christmas Day

Typically, holidays that fall on a Sunday will be observed the following Monday.
Holidays that fall on a Saturday will be observed at the Company’s discretion on
the Friday preceding or the Monday following the holiday or as otherwise
designated by common business practice. Due to the 24/7 needs we may
request or ask some employees to coordinate time off during these holidays and
therefore ask to work on a holiday with the understanding that you will get
another day off with pay.

We will grant paid holiday time off to all eligible employees immediately upon
assignment to an eligible employment classification. For non-exempt
employees, holiday pay will be calculated based on your straight-time pay rate
(as of the date of the holiday) times the number of hours you would otherwise
have worked on that day. Eligible employee classifications:
 Corporate Regular full-time employees
 Corporate Regular part-time employees

To be eligible for holiday pay, you must work the last scheduled day
immediately preceding and the first scheduled day immediately following the
holiday, unless Personal Time Off (PTO) time is requested and approved in
advance.

If a Company holiday occurs during your scheduled vacation, holiday pay will be
provided instead of being charged to your PTO balance.

Non-exempt employees who work on a Company holiday will receive holiday

pay, plus wages at one (1) times their straight-time rate for the hours worked
on the holiday. Manager approval is required to work on a Company holiday.
Holiday pay will not be counted as hours worked for the purposes of determining
overtime. Employees on any type of leave of absence, or receiving disability
pay, are not eligible for holiday pay. Exempt employees that work a holiday will
be authorized another day off preferably within that pay period.

You may take PTO time to observe religious or other holidays, or charity events
that are not given as paid time off by the Company. The Company may ask
certain departments, or the whole company, to take a day(s) as holiday or time
off, and use PTO time with or without pay as appropriate.
Rev 1.2 Page 26
HSS Employee Handbook

Workers' Compensation Insurance

HSS provides a comprehensive workers’ compensation insurance program at no
cost to you. All employees are eligible. This program covers injury or illness
sustained in the course of employment that requires medical, surgical, or
hospital treatment. The Company insurance vendor may pay you for the time
lost due to a work-related accident or illness during the remainder of the normal
workday in which the incident occurs. Subject to applicable legal requirements,
workers' compensation insurance provides income benefits after a short waiting
period or, if you are hospitalized, immediately. It is very important that you go
to the nearest medical facility in an emergency. All other cases need to be
reviewed by the company’s authorized carriers. If you do not follow procedures,
you may incur expenses that will not be reimbursed to you.

If you sustain a work-related injury or illness, you must inform your manager
and Human Resources immediately. If it is an extreme emergency, call 911 or
go to the nearest medical facility. If it is minor, review the doctors listed on the
company bulletin board and select a medical facility from that list. No matter
how minor an on-the-job injury may appear, are required to report it
immediately. This will enable you to qualify for coverage as quickly as possible.

Neither HSS, nor the insurance carrier, will be liable for the payment of workers'
compensation benefits for injuries that occur during your voluntary participation
in any off-duty recreational, social, or athletic activity sponsored by the
Company.

You will be required to keep your immediate supervisor or HR informed of any

change of status while on workers compensation leave or care. As requested by
the Company you will keep us informed per the schedule we ask you to maintain
on the status of your care and work ability.
When you return to work from a work-related illness or injury, you are required
to provide Human Resources with a written authorization from the treating
physician. Human Resources will work with you and your manager to
accommodate work modifications, where feasible.

Time Off to Vote

HSS encourages employees to fulfill their civic responsibilities by participating in
elections. Generally, you are expected to find time to vote either before or after
your regular work schedule. If you are unable to vote in an election during your
nonworking hours, because you are required to be at work within two (2) hours
after voting time starts, and be at work two (2) hours before voting time ends,
then the Company will grant up to two (2) hours of paid time off to vote. Voting
time is not charged to your PTO balance.

You should request time off to vote from your manager at least one (1) day
prior to the Election Day. Advance notice is required so that the necessary time
off can be scheduled with the least disruption to the normal work schedule.
Rev 1.2 Page 27
HSS Employee Handbook

Bereavement Leave
Paid bereavement leave is available to regular full-time employees and regular
part-time employees. Notify your manager immediately if you need to take time
off due to the death of an immediate family member. Bereavement leave will
normally be granted, unless there are unusual business needs or staffing
requirements.

From one (1) hour to two (2) days of paid bereavement leave will be provided to
attend the funeral of an immediate family member. The length of bereavement
leave requires manager approval and should be dependent on the location of the
funeral and your involvement in making final arrangements and travel
requirements. Under certain circumstances, your manager may approve an
unpaid extension to your bereavement leave, or you may request PTO time.

With your manager’s approval, you may take PTO to attend the funeral of other
relatives or friends.

Bereavement pay is calculated on your regular base pay rate at the time of
absence, and will not include any special forms of compensation, such as
incentives, commissions, bonuses, or shift differentials.

Bereavement leave pay will be made for the actual time spent away from work
for the funeral or its arrangement. For example, if the death occurs at a time
when work is not scheduled, payment will not be made. If a holiday or part of
your vacation occurs on any of the days of absence, you will not receive holiday
or PTO pay in addition to bereavement leave pay.

The Company defines “immediate family” as:

 Spouse
 Children (including step-children and your child’s spouses)
 Parents (including your spouse’s parents or step-parents)
 Grandparents (including your spouse’s grandparents)
 Grandchildren (including your spouse’s grandchildren)
 Sisters and Brothers (including your spouse’s siblings)

Relocation Benefits
If HSS asks you to relocate to a new area, certain relocation benefits may be
provided to facilitate the transition. Relocation Benefits may be available to any
eligible transferred or newly hired employee who must relocate in order to
reside within one hundred (100) miles of the new place of work. Those
employees eligible for relocation benefits are normally corporate full-time
employees. The decision to award relocation benefits will be decided case-by-
case and requires prior approval of a member of the Executive Team.

Rev 1.2 Page 28

HSS Employee Handbook

For specific information regarding the terms and extent of relocation benefits,
please contact the Human Resources Department. You must request relocation
assistance for specific items in advance of the date the expenses are incurred.
The Company will reimburse expenses (minus taxes) only if you have received
advance approval, incur reasonable expenses, and submit satisfactory proof of
the expense within thirty (30) calendar days of the date the expense was
incurred.

Jury Duty
HSS encourages you to fulfill your civic responsibilities by serving jury duty
when required. Employees in an eligible classification may be approved for
salary continuation for up to one (1) day of paid jury duty leave over any one
(1) year period. In some States more pay may be available, depending upon
State law.

Jury duty pay will be calculated on your base pay rate times the number of
hours you would otherwise have worked on the day of absence. Employee
classifications that qualify for paid jury duty leaves are:

 Corporate Regular full-time employees

You must give a copy of the jury duty summons to your manager, as well as
Human Resources, immediately so that the arrangements can be made to
accommodate your absence. Of course, you are expected to report for work
whenever the court schedule permits. Either HSS or you may request an excuse
from jury duty if, in the Company’s judgment, your absence would create
serious operational difficulties.

If you are required to serve jury duty beyond the one (1) day period of paid jury
duty leave, you may use any available PTO, or you may request a Personal
Leave of Absence. Of course, HSS will comply with all state law requirements
related to jury service.

Witness Duty
HSS encourages you to appear in court for witness duty when subpoenaed to do
so. If you have been subpoenaed or otherwise requested to testify as witnesses
by the Company, you will receive paid time off for the entire period of witness
duty. This time is not charged against your regular PTO balance.

If you are subpoenaed as a witness at the request of a party other than the
Company, you may use available PTO, or request a Personal Leave of Absence.

Present the subpoena to your manager and notify Human Resources

immediately after it is received so that operating requirements can be adjusted
to accommodate your absence. You are expected to report for work whenever
the court schedule permits.
Rev 1.2 Page 29
HSS Employee Handbook

Benefits Continuation (COBRA)

The federal Consolidated Omnibus Budget Reconciliation Act (COBRA) gives you
and your qualified beneficiaries the opportunity to continue health insurance
coverage under the Company’s health plan when a “qualifying event” would
normally result in the loss of eligibility. Some common qualifying events are
resignation, termination of employment, or death of an employee; a reduction in
an employee’s hours or a leave of absence; an employee’s divorce or legal
separation; and a dependent child no longer meeting eligibility requirements.

Under COBRA, you or your beneficiary pay the full cost of coverage at the
Company’s group rates, which may increase or decrease, plus a 2%
administration fee or by current law provisions. HSS provides you with a written
notice describing rights granted under COBRA when you become eligible for
coverage under the Company’s health insurance plan. The notice contains
important information about your rights and obligations.

An election form and payment information is also provided when your coverage
under the Company’s medical plan terminates due to a qualifying event. For
further details regarding continuing or converting your group health insurance
benefits, you should contact Human Resources.

Educational Assistance
HSS recognizes that the skills and knowledge of its employees are critical to the
success of the organization. This program is not designed for employees to
finish a degree or obtain an additional degree. The educational assistance
program encourages personal development through formal education so that
you can maintain and improve your job-related skills, or enhance your ability to
compete for reasonably attainable jobs within the Company.

You are eligible to apply for educational assistance after you have completed
three (3) months of service in an eligible employment classification. To
maintain eligibility, you must remain on the active payroll and be performing
your job satisfactorily through completion of each course. Employees in the
following employee classification(s) are eligible for educational assistance:

 Regular full-time employees

Courses that are part of a degree, licensing, or certification program must be

related to your current job duties, or a foreseeable future position in the
organization, in order to be eligible for educational assistance. The Company
has the sole discretion to determine whether a course relates to your current job
duties or a foreseeable-future position. The approval process will include
consideration of budget availability and advance approval and scheduling of
coursework. Educational Assistance benefits require approval by your manager,
department head and Human Resources.

Rev 1.2 Page 30

HSS Employee Handbook

While educational assistance is expected to enhance your performance and

professional abilities, the Company cannot guarantee that participation in formal
education will entitle you to automatic advancement, a different job assignment,
or pay increases.

HSS invests in educational assistance to employees with the expectation that

the investment will be returned through enhanced job performance. However, if
you voluntarily separate from the Company’s employment within one year of the
last educational assistance payment, the amount of the payment will be
considered only a loan. Accordingly, you will be required to repay up to one
hundred (100) percent of the educational assistance payment, and hereby
authorize payroll deduction of this amount from your final paycheck.

Contact the Human Resources Department for more information or questions

about educational assistance.

Paid Time Off (PTO)

Paid Time Off (PTO) is an all-purpose time-off policy for eligible employees to
use for vacation, illness or injury, other holidays, charity work and personal
business. It combines traditional vacation and sick leave plans into one flexible,
paid time-off policy. Employees in the following employment classification(s)
are eligible to earn PTO for each pay period in which they perform work.

 Regular full-time employees

 Regular part-time employees (eligible for a prorated portion of the accrual
rate of full-time employees)

Once you enter an eligible employment classification, you begin to earn PTO
according to the full-time employee schedule below, however, normally, no PTO
time may be used until after 90 days of employment unless pre-approved by a
least a Vice President. PTO is available for use generally according to your
needs, and may be used for vacation, holidays, charity work, sick or other
reasons you need to be away from work.

Once you elect to start taking your earned PTO time, submit to your manager
two (2) weeks prior to the date you are wishing to take time off, a completed
PTO request form. If you are sick or need the day off, you will need to make
arrangements with your manager to be off. Once you return, you will need to
complete a PTO request form and submit to your manager for signature. If you
are taking a long vacation, you will need to fill out a PTO request form, as soon
as you are aware of the dates in which you are wishing to take off and submit to
your direct manager for approval, hopefully at least one month in advance. All
PTO forms must be submitted no later than the end of the pay period in which
PTO was taken for emergency PTO. By end of September of each year, you are
required to submit all PTO requests through the end of the year to assist your
manager if managing the department. If not you may be denied any PTO
requested.
Rev 1.2 Page 31
HSS Employee Handbook

When possible, PTO will be assigned in accordance with the employee’s request,
taking operating requirements into account. Generally speaking, the length of
employment determines priority in scheduling PTO.

Of your PTO time, the company deems five (5) days to be considered
emergency days or sick days, therefore, if you take more than these five days
as sick or emergency, you may be denied additional paid time off for excessive
absence.

PTO time is earned, beginning on the 1st of the month upon employment, as
follows (26 pay periods per year):

Corporate Regular Full-time Employees:

1st Full Month through 5th year 4.62 hours per pay period
6th year through 10th year 6.16 hours per pay period
11th year through 15th year 6.47 hours per pay period
16th year through 20th year 6.77 hours per pay period
21st year forward 7.08 hours per pay period

Corporate Regular Part-time employees earn one-half proration of the above full
time allotment.

PTO can be used in minimum increments of one hour (1hour). To maintain

operations, we ask that you take PTO in maximum increments of five (5) days.
If a longer period is needed, please plan and get VP approval at least 60 days in
advance.

No PTO time will be earned while an employee is on an unpaid leave of absence,

or on short term or long-term disability leave. You may take PTO in advance of
accruing time (but no more than the remaining accrual amount in that calendar
year) however, if your employment is terminated you agree to have the time off
taken prior to earning it subtracted off of your final pay, or other monies owed
you. If you still owe money back to the company you further agree to pay the
remainder back to the company.

PTO time will run concurrently with any disability leave taken, or absence
resulting from an on the job injury. If an employee simultaneously receives
disability or workers’ compensation benefits and PTO, the value of such benefits
shall be deducted from his or her compensation for PTO.

PTO is earned on an accrual basis beginning the 1st of the month after your
employment starts; however, if your employment ends for any reason prior to
the end of a pay period, no PTO is earned for that period.

All PTO earned during the calendar year (January – December) must be used by
December 31st of the year. PTO time for the calendar year not used by
December 31st will be forfeited on that day unless otherwise required by law.

Rev 1.2 Page 32

HSS Employee Handbook

That is, unless state or local law provides otherwise, you must “use or lose” your
PTO each year.

Except as required by law, upon termination of employment for any reason,

employees will not be paid for unused PTO that has been accrued. However, if
you provide the normal 2 week notice, and work your notice period at full
performance, the company will pay out up to 40 hours of accrued PTO. This does
not constitute a guarantee that employees will be permitted to work out the two
week notice period; the company may require immediate dismissal at its
discretion. For purposes of determining true vacation subset within PTO five
days of this time off is considered to be sick time off each year. If a State or
local law requires any specific payouts the Company will comply with that law.

Medical & Dental Insurance

HSS’s Medical and Dental insurance plan provides eligible employees and their
eligible dependents access to elect medical and dental care insurance benefits.
Employees in the following employment classifications are eligible to participate
in the health insurance plan:

 Corporate Regular full-time employees

Eligible employees may participate in the health insurance plan subject to the
terms and conditions of the agreement between HSS and the insurance carrier.
A change in employment classification that would result in loss of eligibility to
participate in the health insurance plan may qualify you for benefits continuation
under the Consolidated Omnibus Budget Reconciliation Act (COBRA).

Details of the health insurance plan are described in the Summary Plan
Description (SPD), and in benefit enrollment materials provided to eligible
employees. Contact the Human Resources Department for more information
about health insurance benefits.

Life Insurance and AD&D Insurance

Life insurance offers eligible employees to elect coverage for themselves and
their dependents for important financial protection. Additional supplemental
and/or dependent life insurance coverage may be purchased by enrolling for
coverage.

Accidental Death and Dismemberment (AD&D) insurance provides protection in

cases of serious injury or death resulting from an accident. AD&D insurance
coverage is provided as part of the basic life insurance plan.

Employees in the following employment classifications are eligible to elect

coverage in the life insurance plan:

Rev 1.2 Page 33

HSS Employee Handbook

 Corporate Regular full-time employees

Eligible employees may elect coverage in the life insurance plan subject to the
terms and conditions of the agreement between the Company and the insurance
carrier.

Details of the basic life and AD & D insurance plan, including benefit amounts,
are described in the Summary Plan Description (SPD), and in benefit enrollment
materials provided to eligible employees. Contact the Human Resources
Department for more information about life insurance benefits.

Short Term Disability

HSS provides a short-term disability (STD) benefits plan to eligible employees

who elect coverage when you are unable to work because of a qualifying
disability due to an injury or illness. Employees in the following employment
classifications are eligible to participate in the STD plan:

 Corporate Regular full-time employees

Eligible employees may elect coverage in the STD plan subject to the terms and
conditions of the insurance agreement between the Company and the insurance
carrier.

Disabilities arising from pregnancy, or pregnancy-related illness are treated the

same as any other illness which prevents an employee from working. Disabilities
covered by workers’ compensation are excluded from STD coverage.

Details of the STD benefits plan, including benefit amounts, when they are
payable, and limitations, restrictions, and other exclusions, are described in the
Summary Plan Description (SPD), and in benefit enrollment materials provided
to eligible employees. Contact the Human Resources Department for more
information about STD benefits.

While on STD, your health and welfare benefits continue only if you elect and
pay your normal contribution. PTO will not accrue during your STD period. PTO
may be used in conjunction with STD.

Long-Term Disability
HSS provides a long-term disability (LTD) benefits plan when you elect coverage
to help eligible employees cope with an illness or injury that necessitates in a
long-term absence from employment. LTD is designed to ensure a continuing
income when you become for disabled and unable to work for an extended
period of time.

Rev 1.2 Page 34

HSS Employee Handbook

Employees in the following employment classifications are eligible to participate

in the LTD plan:

 Corporate Regular full-time employees

Eligible employees may elect coverage in the LTD plan subject to the terms and
conditions of the agreement between the Company and the insurance carrier.
LTD benefits are offset with amounts received under Social Security or workers'
compensation for the same time period.

Details of the LTD benefits plan, including benefit amounts, and limitations and
restrictions, are described in the Summary Plan Description (SPD), and in
benefit enrollment materials provided to eligible employees. Contact the Human
Resources Department for more information about LTD benefits.

Once you have not worked for 90 calendar dates, it is company policy that you
are no longer considered an employee and will be terminated from being an
active employee. If you elected coverage, the premium for LTD is waived by the
carrier throughout the period of LTD. All other benefits cease on the effective
date, however, you may be eligible for COBRA, in accordance with the plans in
place at that time.

Federal & State Employment benefits

Unemployment Compensation
Depending upon the circumstances, you may be eligible for unemployment
compensation benefits upon termination of employment with HSS. The state
unemployment office where you live determines eligibility for benefits when you
leave the Company. HSS pays the entire cost of this insurance program.

Unemployment compensation is designed to provide you with temporary income

when you are out of work through no fault of your own. For your claim to be
valid, you must have a minimum amount of earnings, determined by each state,
and be willing and able to work. You should apply for benefits through the local
state unemployment office as soon as you become unemployed.

Social Security
The United States Government operates a system of insurance known as Social
Security. As a wage earner, you are required by law to contribute a set amount
of your weekly wages to the trust fund from which retirement and disability
benefits are paid. The Company is required to deduct this amount from each
paycheck you receive. In addition, the Company matches your contribution,
dollar for dollar, thereby paying one-half the cost of your future Social Security
benefits.

Rev 1.2 Page 35

HSS Employee Handbook

Your Social Security number is used to record your earnings. You are
encouraged to protect your Social Security record by ensuring your name and
Social Security number on your paycheck is correct. You may also want to
make sure your earnings statement is accurate each year by requesting a
Personal Earnings and Benefits Estimate Statement from the U.S. Social Security
Administration. You can do so by calling 1-800-772-1212 or by accessing the
agency online at www.ssa.gov.

Rev 1.2 Page 36

HSS Employee Handbook

PAYROLL POLICIES & PRACTICES

Rev 1.2 Page 37

HSS Employee Handbook

Timekeeping
Accurately recording time worked is the responsibility of every non-exempt
employee. Federal and state laws require HSS to keep an accurate record of
time worked in order to calculate employee pay and benefits. Time worked is all
time actually spent on the job performing assigned duties.

Non-exempt employees should accurately record the time they begin and end
their work, as well as the beginning and ending time of each meal period. They
should also record the beginning and ending time of any split shift or departure
from work for personal reasons. Overtime work must always be approved
before it is performed. While unauthorized overtime work will be compensated,
employees working unauthorized hours will be subject to discipline, up to and
including immediate discharge.

Altering, falsifying, tampering with time records, or recording time on another

employee's time record may result in disciplinary action, up to and including
termination of employment.

It is the non-exempt employees' responsibility if not on a time clock system, to

sign their time records to certify the accuracy of time recorded. The manager or
human resources will review and then sign the time record before submitting it
for payroll processing. In addition, if corrections or modifications are made to
the time record, both the employee and the manager should verify the accuracy
of the changes by initialing the time record.

Paydays
Employees are paid bi-weekly, every other Friday, which covers two pay week
periods of Monday through Sunday, paid one week in the arrear.

In the event that a regularly scheduled payday falls on a day off, such as a
holiday, you will receive your paycheck on the last day of work before the
regularly scheduled payday. If a regular payday falls during your scheduled
vacation, your paycheck will be available upon return from vacation, or direct
deposited into your account as normal.

You are strongly encouraged to have pay directly deposited into your bank
account(s). This program enables safe and convenient deposit into multiple
financial institutions.

Rev 1.2 Page 38

HSS Employee Handbook

Overtime Pay
When operating requirements or other needs cannot be met during regular
working hours, employees may be required to work overtime hours. When
possible, advance notification of these mandatory assignments will be provided.
All overtime work must receive the manager's prior authorization. Overtime
assignments will be distributed as equitably as practical to employees qualified
to perform the required work.

Overtime compensation is paid to non-exempt employees in accordance with

federal and state wage and hour regulations, based on the Company's 40-hour
workweek unless other state wage rules prevail. Hours worked in an overtime
status will be paid an additional one-half of the normal hourly rate. Overtime
pay is based on actual hours worked. Time off during a workweek for job-
related injury, paid holiday, bereavement, jury duty, or PTO will not be
considered hours worked for the purposes of computing overtime pay.
However, when an employee is required, and approved, to work on a Company
recognized holiday, the hours worked on the holiday will be considered in
computing overtime pay.

Failure to work scheduled overtime, or working overtime without prior

authorization from your manager, may result in disciplinary action, up to and
including immediate termination of employment.

Your Paycheck

It is our policy and practice to accurately compensate employees and to do so in

compliance with all applicable state and federal laws. To ensure you are paid
properly for all time worked and that no improper deductions are made, you
must record correctly all work time and review your paychecks promptly to
identify and to report all errors.

Review Your Pay Stub

We make every effort to ensure our employees are paid correctly. Occasionally,
however, inadvertent mistakes can happen. When mistakes do happen and are
called to our attention, we will promptly make any corrections necessary. Please
review your pay stub when you receive it to make sure it is correct. If you
believe a mistake has occurred or if you have any questions, please use the
reporting procedure outlined below.

Non-exempt Employees

If you are classified as a non-exempt employee, you must maintain a record of

the total hours you work each day. These hours must be accurately recorded on
a time card or time clock system that will be provided to you by your supervisor.
Each employee must punch in via the time clock system to verify the reported
hours worked are complete and accurate. Your time card must accurately

Rev 1.2 Page 39

HSS Employee Handbook

reflect all regular and overtime hours worked, any absences, late arrivals, early
departures and meal breaks. At the end of each week, your completed time
must be approved by your supervisor or designated individual for verification
and approval. Do not submit your time unless it is accurate. If your time
punches are not accurate, notify your supervisor immediately. When you
receive each pay check, please verify immediately that you were paid correctly
for all regular and overtime hours worked each work week.

Unless you are authorized by your supervisor, you should not work any hours
that are not authorized. Do not start work earlier then your scheduled time
unless your supervisor approves, clock out immediately after your work day
ends, work during a meal break or perform any other extra or overtime work
unless you are authorized to do so and that time is recorded on your time card.
Employees are prohibited from performing any "off-the-clock" work. "Off-the-
clock" work means work you may perform but fail to report on your time card.
Any employee who fails to report or inaccurately reports any hours worked will
be subject to disciplinary action, up to and including discharge.

It is a violation of the Company’s policy for any employee to falsify a time card
or punch, or to alter another employee's time card or punch(s). It is also a
serious violation of Company policy for any employee or manager to instruct
another employee to incorrectly or falsely report hours worked or alter another
employee's time card to under- or over-report hours worked. If any manager or
employee instructs you to (1) incorrectly or falsely under- or over-report your
hours worked, or (2) alter another employee's time records to inaccurately or
falsely report that employee's hours worked, you should report it immediately
Human Resources.

Exempt Employees

If you are classified as an exempt salaried employee, you will receive a salary
which is intended to compensate you for all hours you may work for the
Company. This salary will be established at the time of hire or when you
become classified as an exempt employee. While it may be subject to review
and modification from time to time, such as during salary review times, the
salary will be a predetermined amount that will not be subject to deductions for
variations in the quantity or quality of the work you perform.

Under federal and state law, your salary is subject to certain deductions and also
may be reduced for certain types of deductions such as your portion of health,
dental or life insurance premiums; state, federal or local taxes, social security;
or, voluntary contributions to a 401(k) or pension plan. Deductions will not be
taken that is prohibited by state or federal law.

Rev 1.2 Page 40

HSS Employee Handbook

Employment Termination
Termination of employment is an inevitable part of personnel activity within any
organization. Below are examples of some of the most common circumstances
under which employment is terminated:

 Resignation- voluntary employment termination initiated by an employee.

 Discharge-involuntary employment termination initiated by the Company.
 Reduction in Force - involuntary employment termination initiated by the
Company for non-disciplinary reasons.
 Retirement - voluntary employment termination initiated by the employee
meeting age, length of service, and any other criteria for retirement from the
Company.

Human Resources will generally schedule an exit interview at the time of

employment termination. The exit interview will afford an opportunity to discuss
such issues as employee benefits, conversion privileges, repayment of
outstanding debts to HSS, and return of HSS-owned property. Any HSS’s
property in your possession, including but not limited to Company phones,
badge, computer equipment, keys, Company credit cards and pagers, must be
returned to HSS upon request, or at the time of termination of employment.
You will be responsible for any lost or damaged items. The value of any
property issued and not returned may be deducted from any monies owed you
including your final paycheck, and you may be required to sign a wage
deduction authorization form for this purpose. It is the Direct Manager or
Supervisor that is responsible to ensuring the employee exits the company and
he/she will collect all company equipment from the terminating employee.

Any employee that has not worked for a 90 day calendar day duration that may
be on disability or other type leave and cannot return to work will generally be
considered terminated from employment with our company unless otherwise
directed by law.

Since employment with HSS is based on mutual consent, both the employee and
HSS has the right to terminate employment at will at any time, with or without
cause, at any time.

Pay Advances
HSS will not make personal loans or payroll advances to employees unless they
are for travel of the company or approved by the CEO.

Rev 1.2 Page 41

HSS Employee Handbook

Administrative Pay Corrections

HSS takes reasonable steps to ensure that employees receive the correct
amount of pay in each paycheck, and that employees are paid promptly on the
scheduled payday.

In the event that there is an error in your paycheck, you should promptly bring
the discrepancy to Payroll so that adjustments in pay and/or deductions can be
corrected as quickly as possible. In the event of an overpayment, Payroll will
work with you to determine a feasible repayment schedule.

Pay Deductions and Setoffs

The law requires that HSS make certain deductions from every employee's
compensation. Among these are applicable federal, state, and local income
taxes. The amount of your income tax withholding is computed based on your
earnings and the number of exemptions you claim on your Federal and State
W-4 form. If you wish to modify the number of exemptions, you may submit a
new W-4 to the Payroll Department, and your income tax withholding will be
adjusted on your next paycheck. HSS also must deduct Social Security taxes on
each employee's earnings up to a specified limit that is called the Social Security
"wage base." HSS matches the amount of Social Security taxes paid by each
employee.

HSS offers programs and benefits beyond those required by law. Eligible
employees may voluntarily authorize deductions from their paychecks to cover
the costs of participation in these programs.

Pay setoffs are mandated pay deductions taken by HSS, usually to help pay off a
debt or obligation to HSS or other authorized entities. If HSS receives a court
order to garnish your wages, you will be notified. HSS acts in accordance with
the federal Consumer Credit Protection Act, which places restrictions on the total
amount that may be garnished from your paycheck.

Payroll deductions and setoffs will be itemized on your check stub. You are
advised to check your pay stub each pay period. If you have questions
concerning why deductions were made from your paycheck, or how they were
calculated, Payroll can assist you.

Rev 1.2 Page 42

HSS Employee Handbook

WORKING CONDITIONS

Rev 1.2 Page 43

HSS Employee Handbook

Safety
HSS is committed to the safety and health of employees, customers and visitors,
and recognizes the need to comply with applicable regulations governing injury
and accident prevention. Maintaining a safe work environment requires the
continuous cooperation of employees.

HSS will maintain safety and health practices consistent with the needs of our
industry and according with applicable law. Information regarding workplace
safety and health issues is disseminated through regular internal communication
channels, such as department meetings, bulletin board postings, memos, or
other written communications.

Each employee is expected to obey safety rules and to exercise caution and
common sense in work activities. Employees must immediately report any
unsafe condition to the appropriate manager. Employees who violate safety
standards, who cause hazardous or dangerous situations, or who fail to report
or, where appropriate, remedy such situations, may be subject to disciplinary
action, up to and including termination of employment.

In the case of accidents that result in injury, regardless of how insignificant the
injury may appear, employees are required to immediately notify the
appropriate manager. If you see an employee who is sick or injured, contact
your manager or Human Resources immediately so that appropriate emergency
or medical personnel can be contacted. Injury reports are necessary to comply
with laws, and to initiate insurance and workers' compensation benefits
procedures and reimbursement to you.

Should you have any questions or concerns regarding safety issues, contact
your manager or Human Resources for information and assistance. You may be
asked to see additional doctors at the choice of the company to continue any
type of medical treatment or other benefit.

Work Schedules
If not authorized to work flex hours, the regular business hours are 8:30 am to
5:30 pm with a one hour unpaid lunch break. HSS’s main corporate office
business “core hours” are from 9:00 a.m. to 4:00 p.m. Monday through Friday.
Core hours are the window of time all employees are expected to be present at
work, and the remaining hours are flexible per the approval of your manager to
fulfill a nine (9) hour timeframe with a one (1) hour scheduled lunch break.
Managers will advise employees of the times their schedules will normally begin
and end. Staffing needs and operational demands may necessitate variations in
starting and ending times, as well as variations in the total hours that may be
scheduled each day and week. Some operational shift needs will be necessary to
meet the time zone requirements of the field operation on the west coast,
heavier workloads on some days which may require an employee to have an
Rev 1.2 Page 44
HSS Employee Handbook

exception to the core hours as stated above. Some Customer site facilities may
require different working hours and as required, may post their own hours of
work.

Flexible scheduling, or flextime, is available in many cases to allow employees to

vary their starting and ending times each day within established limits. Flextime
may be possible if a mutually workable schedule can be negotiated between you
and your manager. However, such issues as staffing needs, your performance,
and the nature of your job, will be considered before approval of flextime.
Consult with your manager to request participation in the flextime program.
You will be expected to regularly work your approved schedule and complete
your assigned work tasks. Flex Schedules will be posted on the company bulletin
Board or electronically to assist others in knowing when and how to reach each
other.

Requests for changes in schedules, or for particular days off, generally must be
made in a timely fashion, and be approved by your manager prior to being
working the new schedule. The Company reserves the right to change or
withdraw flexible work schedules at its sole discretion.

Multiple employees' requests for the same flexible schedule within a department
may be denied or decided based on the manager's discretion.

Breaks
Employees that work full time may need to take a break occasionally. Since
everyone is doing different tasks, it is almost impossible to set standard break
periods for all employees. Some departments may be able to set breaks, and
when appropriate, the department manager will inform the individuals in that
department of the assigned break time.

If none are set, you may take a break as you deem appropriate and should not
exceed a total of 10 minutes in the morning and 10 minutes in the afternoon for
corporate full time employees. These breaks are paid. For those that smoke,
you need to be sensitive of your total time away from your work area. Break
time allotted includes smoking breaks. Part time employees should pro-rate this
activity.

Use of Phone and Mail Systems

The success of HSS depends on the quality of relationships between HSS, our
employees, customers, suppliers and the general public. Regardless of your
position, you are HSS’s ambassador. The more goodwill you promote, the more
our customers will appreciate and respect you, HSS our products and services.
To ensure effective telephone communications, you should always use a
business appropriate greeting, and speak in a courteous and professional
manner. Please confirm information received from the caller and hang up only
Rev 1.2 Page 45
HSS Employee Handbook

after the caller has done so. Please keep your voice message up to date at all
times. Cell phones and other electronic devices (i.e. Blackberry’s) has become
an everyday communications tool, however the Company asks you not to use
this type of equipment while driving a motor vehicle. Use of your personal cell
phone and electronic equipment should be used only on emergency while
working.

The telephone, mail and shipping at HSS are to be used for business purposes.
Occasional personal use of the telephone is permitted; however, employees may
be required to reimburse HSS for any charges resulting from their personal use
of the telephone.

The use of HSS’s paid postage or shipping charges for personal correspondence
or packages is only permitted if you pay at time of service.

Smoking-Free Workplace
In keeping with HSS’s intent to provide a safe and healthful work environment,
smoking in and around the workplace is prohibited except in those locations that
have been specifically designated outside as smoking areas. In situations where
the preferences of smokers and nonsmokers are in direct conflict, the
preferences of nonsmokers will prevail. This policy applies equally to
employees, customers, and visitors.

Please be courteous and concerned about the needs of your fellow employees.
Use appropriate receptacles for disposing of smoking materials. Excessive
smoking breaks that affect the performance of your job duties may result in
disciplinary action, up to and including immediate termination.

Remember to conform to the smoking policies of our customers when you are
working or visiting any customer’s or vendor's place of business.

Meal Periods
Full-time regular employees are provided with one unpaid meal period of one (1)
hour in length each workday. If the Employee or Manager requests a shorter
meal period, there must be mutual approval in writing (given to HR). The
minimum a Full-time Employee may take for a meal break is thirty (30)
minutes. Managers will schedule meal periods to accommodate operating
requirements. Employees will be relieved of active responsibilities and
restrictions during meal periods and will not be compensated for that time. Non-
Exempt Employees are not to work during their meal break.

Rev 1.2 Page 46

HSS Employee Handbook

Use of Company Equipment

Equipment essential in accomplishing job duties is often expensive and may be
difficult to replace. When using property, you are expected to exercise care,
perform required maintenance, and follow operating instructions, safety
standards, and guidelines.

Please notify your manager if any equipment, machines, or tools appear to be

damaged, defective, or in need of repair. Prompt reporting of damages, defects,
and the need for repairs could prevent deterioration of equipment and possible
injury to you or others. Your manager can answer any questions about your
responsibility for maintenance and care of equipment used on the job.

You are responsible for signing for all equipment you take from the company’s
premises. If you damage or lose the property, you will be required to reimburse
the company. You agree that the company may take money owed due to
damage or lost property from your expense or payroll check. The improper,
careless, negligent, destructive, or unsafe use or operation of equipment can
result in disciplinary action, up to and including termination of employment.

Emergency Closings & Evacuations

At times, emergencies such as severe weather, fires, power failures, hurricanes
or earthquakes, can disrupt Company operations. In extreme cases, these
circumstances may require the closing of a work facility.

When the decision to close is made AFTER the workday has begun, employees
will receive official notification from management. In these situations, time off
from scheduled work will be paid. When the decision to close is made BEFORE
the workday has begun, time off from scheduled work will be paid.

In cases where an emergency closing is not authorized, employees who fail to

report for work will not be paid for the time off. Employees may request
available unused PTO benefits. Employees may elect this alternative if they feel
they have a life-threatening situation.

Employees in essential operations may be asked to work on a day when

operations are officially closed. In these circumstances, employees who work
will receive regular pay.

Emergency Evacuations
If you are advised to evacuate the building:
 Stop work immediately; do not collect personal belongings.
 Walk quickly to the nearest exit. Do not run.
 Proceed to a parking lot near the building. Be present and accounted for
during a roll call.
 Do not reenter the building until instructed to do so.

Rev 1.2 Page 47

HSS Employee Handbook

Business Travel Expenses

HSS will reimburse you for reasonable business travel expenses incurred while
on assignments away from the normal work location. Business travel must be
approved in advance by your department manager. You must make travel
arrangements through HSS’s designated travel agency and in accordance with
the company travel policy.

When approved, the actual costs of travel, meals, lodging, and other expenses
directly related to accomplishing business travel objectives are reimbursed by
HSS. You are expected to limit expenses to reasonable amounts.

If you are involved in an accident while traveling on business, promptly report

the incident to your manager or Human Resources. Vehicles owned, leased, or
rented by HSS may not be used for personal use without prior approval.

With prior written approval, a family member or friend may accompany you,
when the presence of a companion will not interfere with the successful
completion of your business objectives.

When travel is completed, you should submit completed travel expense reports
within thirty (30) days. Receipts for individual expenses must accompany
expense reimbursement reports. In most cases, if you have submitted an
approved expense report prior to Thursday of the week before payroll, you will
receive payment with that payroll.

Contact your manager or Finance for guidance and assistance on procedures

related to travel arrangements, expense reports, reimbursement for specific
expenses, or any other business travel issues.

Abuse of this Business Travel Expense policy, including falsifying expense

reports to reflect costs not incurred by you, can be grounds for disciplinary
action, up to and including termination of employment.

Visitors in the Workplace

To provide for the safety and security of employees and the facilities and
property of HSS, only authorized visitors are allowed in the workplace.
Restricting unauthorized visitors helps maintain safety standards, protects
against theft, ensures security of equipment, protects confidential information,
safeguards employee welfare, and avoids potential distractions and
disturbances. Visitors are to follow company rules.

If you are expecting visitors, notify the receptionist or the person who watches
the door, who will ensure that your visitors sign the guest list. You or your
authorized representative should escort visitors to their destination. You are
responsible for the conduct and safety of your visitors.

Rev 1.2 Page 48

HSS Employee Handbook

If an unauthorized individual is observed on HSS’s premises, you should

immediately notify your manager or the Human Resources Department and, if
necessary, direct the individual to the reception or appropriate area.

Computer, Software, Internet and E-mail Usage

Computers, computer files, the e-mail system, and software furnished to
employees are HSS’s property intended for business use. Incidental and
occasional personal use of Company computers, voice mail and electronic mail
systems is permitted, but information and messages stored in these systems will
be treated as Company property. By accepting and continuing your employment
with the Company, you agree that you have no expectation that any information
on Company computers and/or communication systems is private or
confidential. You further agree that

You should not use another individual’s password, access a file, or retrieve any
stored communication without authorization. To ensure compliance with this
policy, computer and e-mail usage may be monitored. HSS may have to
respond to proper requests resulting from legal proceedings that call for
electronically stored evidence. HSS also will conduct investigations where
complaints of unacceptable behavior have been made. Therefore, HSS reserves
the right to enter any of these systems to inspect and review data transmitted
or recorded in or on these systems.

HSS strives to maintain a workplace free of harassment and sensitive to the

diversity of its employees. Therefore, HSS prohibits the use of computers and
the e-mail system in ways that are disruptive, offensive to others, or harmful to
morale.

For example, the display or transmission of sexually explicit images, messages,

and cartoons is not allowed. Other such misuse includes, but is not limited to,
ethnic slurs, racial comments, off-color jokes, or anything that may be
construed as showing disrespect for others or harassment.

If you receive any message that you feel is disrespectful or harassing in nature,
you must take the initiative and send a note back to the author (if known) and
respectfully state that “by notification of this e-mail I request that you cease
immediately the action of sending e-mails of this disrespectful nature. I must
report to higher authority any such actions in the future”. If you do not know
the author, simply “delete,” and do not respond back or continue to open any of
the files or windows. You must report such conduct immediately to your
supervisor, HR or anyone on the management team.

E-mail may not be used to solicit others for commercial ventures, religious or
political causes, outside organizations, or excessive other non-business matters.

Rev 1.2 Page 49

HSS Employee Handbook

The Company assumes no liability for loss, damage, destruction, alteration,

disclosure, or misuse of any personal data or communications transmitted over
or stored on the Company’s computers. The Company accepts no responsibility
or liability for any loss arising from non-delivery of any personal electronic mail
or voicemail communications or any personal data stored on any Company
property. The Company strongly discourages employees from transmitting or
storing any personal data on any of the Company’s technology resources.

Employees are expected to maintain their passwords as confidential, must not

share passwords, and must not access coworkers systems without express
authorization. However, employees are required to inform IT of their passwords
as required.

Deleting or erasing information, documents, or messages maintained on the

Company’s computers is, in most cases, ineffective. All employees should
understand that any information kept on the Company’s computers could
possibly be electronically recalled or recreated regardless of whether it may
have been “deleted” or “erased”. Employees who delete or erase information or
messages should not assume that such information or messages are
confidential.

HSS purchases and licenses the use of various computer software for business
purposes and does not own the copyright to this software or its related
documentation. Unless authorized by the software developer, HSS does not
have the right to reproduce such software for use on more than one computer,
or install personal software on company computers.

You may only use company software on your company computer, or on local
area networks, or on multiple machines according to the current software
license agreement. HSS prohibits the illegal duplication of software and its
related documentation.

You should notify your manager, the IT Department or any member of

management upon learning of violations of this policy. Employees who violate
this policy will be subject to disciplinary action, up to and including immediate
termination of employment.

Internet access to global electronic information resources on the World Wide

Web is provided by HSS to assist you in obtaining work-related data and
technology. The following guidelines have been established to help ensure
responsible and productive Internet usage. While Internet usage is intended for
job-related activities, incidental and occasional brief personal use is permitted
within reasonable limits.

Internet data that is composed, transmitted, or received via our computer

communications systems is considered to be part of the official records of HSS
and, as such, is subject to disclosure to the Company, to law enforcement or to
other third parties. Consequently, you should always ensure that the business
information contained in Internet e-mail messages and other transmissions are
accurate, appropriate, ethical, and lawful. Blogging (having a personal web
Rev 1.2 Page 50
HSS Employee Handbook

address or belonging to a chat room on the internet) for purposes of HSS

product or other company information must be in accordance with the
employee’s confidentiality agreement and ethics policies. If you see misleading
information, please bring it to the attention of your manager.

The equipment, services, and technology provided to access the Internet

remains, at all times, the property of HSS as such, HSS reserves the right to
monitor all Internet email and computer traffic, and retrieve and read any data
composed, sent, or received through our online connections or stored in our
computer systems.

Data that is composed, transmitted, accessed, or received via the Internet must
not contain content that could be considered discriminatory, offensive, obscene,
threatening, harassing, intimidating, or disruptive to any employee or other
person. Examples of unacceptable content may include, but are not limited to,
sexual comments or images, racial slurs, gender-specific comments, or any
other comments or images that could reasonably offend someone on the basis
of race, age, sex, religious or political beliefs, national origin, disability, sexual
orientation, or any other characteristic protected by law.

The unauthorized use, installation, copying, renaming or distribution of

copyrighted, trademarked, license agreements, or patented material on the
Internet is expressly prohibited. As a general rule, if you did not create
material, do not own the rights to it, or have not gotten authorization for its use,
it should not be put on the Internet. You are also responsible for ensuring that
the person sending any material over the Internet has the appropriate
distribution rights.

Internet users should take the necessary anti-virus precautions before

downloading or copying any file from the Internet. Downloaded files are to be
checked for viruses and compressed files are to be checked before and after
decompression.

Abuse of the Internet access provided by HSS in violation of law or HSS’s

policies, will result in disciplinary action, up to and including immediate
termination of employment. HSS and its employees are legally bound to comply
with the Federal Copyright Act (Title 17 of the U.S. Code) and all proprietary
software license agreements. Noncompliance can expose HSS and the
responsible employee(s) to civil and/or criminal penalties. Employees may also
be held personally liable for any violations of this policy including any fines for
your inappropriate actions. The following behaviors are examples of previously
stated or additional actions and activities that are prohibited and can result in
disciplinary action:

 Sending or posting discriminatory, harassing, or threatening messages or

images
 Stealing, using, or disclosing someone else's code or password without
authorization
 Copying, pirating, or downloading software and electronic files without
permission
Rev 1.2 Page 51
HSS Employee Handbook

 Sending or posting confidential material, trade secrets, or proprietary

information outside of the organization
 Failing to observe licensing agreements
 Sending or posting messages or material that could damage the
organization's image or reputation
 Participating in the viewing or exchange of pornography or obscene materials
 Sending or posting messages that defame or slander other individuals
 Attempting to break into the computer system of another organization or
person
 Sending or posting chain letters, solicitations, or advertisements not related
to business purposes or activities. Signing “guest books” at web sites, or
posting messages on Internet newsgroups or discussion groups at web sites.
 Creating or forwarding content that violates Anti-Spam laws.
 Creating or forwarding content that violates Copyright laws.
 Using the Internet for political causes or activities, religious activities, or any
sort of gambling
 Passing off personal views as representing those of the Company
 Engaging in any other illegal or unethical activities

An employee who uses the Internet or Email shall:

 Ensure that all communications are for professional reasons and that they do
not interfere with his/her productivity
 Be responsible for the content of all text, audio, or images that (s)he places
or sends over the Internet
 Attach their name to all communications
 Not transmit copyrighted materials without permission
 Know and abide by all applicable HSS policies dealing with security and
confidentially of Company information. Avoid transmission of nonpublic
customer information. If it is necessary to transmit nonpublic information,
employees are required to take steps reasonably intended to ensure that
information is delivered to the proper person who is authorized to receive
such information for a legitimate use.

Employees using the Internet are representing the Company. Employees are
responsible for ensuring that the Internet is used in an effective, ethical, and
lawful manner. Examples of acceptable use are:

 Using Web browsers to obtain business information from commercial Web sites
 Accessing databases for information as needed
 Connecting remotely to the Company’s Network through VPN
 Attending Webinars sponsored by outside companies
 Using email for business contacts
 Using Internet Messaging (IM) for internal communications

Rev 1.2 Page 52

HSS Employee Handbook

All messages created, sent, or retrieved are the property of the Company and
may be regarded as public information. HSS reserves the right to access the
contents of any messages sent over its facilities if the Company believes, in its
sole judgment, that it has a business need to do so.

All communications, including text, images and attachments, can be disclosed to

law enforcement or other third parties without prior consent of the sender or the
receiver. This means do not put anything into your email messages that
you would not want to see on the front page of the newspaper or be
required to explain in a court of law.

Violations of copyright law expose the Company and/or the individual

responsible employee(s) to criminal penalties and only some of those items are
listed below:

 Liability for damages suffered by the copyright owner

 Profits that are attributable to the copying
 Fines up to $100,000 for each illegal copy

Violations of copyright law that are committed “willfully and for purpose of
commercial advantage or private financial gain (Title 18 Section 2319(b)),”
expose the Company and/or the individual employee(s) responsible to the
following criminal penalties:

 Fines up to $250,000 for each illegal copy

 Jail terms of up to five years.

Social Networking

Social Networking or "social media" includes, but is not limited to, blogs, forums,
and social networking sites, such as Twitter, Facebook, LinkedIn, other websites,
YouTube, and MySpace.

Off-duty use of social media. Employees may maintain personal websites or

blogs on their own time using their own facilities. Employees must ensure that
social media activity does not interfere with their work. In general, the company
considers social media activities to be personal endeavors, and employees may
use them to express their thoughts or promote their ideas as long as they do
not conflict with company policies, business or exposing company or client
specific information. It is unauthorized to display any confidential information of
the company on these or any other public site and may result in immediate
termination.

On-duty use of social media. Employees may not engage in social media
activity during work time, unless it is directly related to their work ( i.e.
Marketing function), approved by their manager, and does not identify or
reference company clients, customers, or vendors without express permission.

Rev 1.2 Page 53

HSS Employee Handbook

Monitoring. The company may monitor employee use of company computers

and the Internet, including employee blogging and social networking activity and
the use of the company name in any form of identification.

Respect. Demonstrate respect for the dignity of the company, its owners, its
customers, its vendors, and its employees. A social media site is a public place,
and employees should avoid embarrassing readers, company employees,
customers, vendors, or owners. Do not use ethnic slurs, personal insults, or
obscenity, poor use of pictures, or use language that may be considered
inflammatory. Even if a message is posted anonymously, it may be possible to
trace it back to the sender.

Post disclaimers. If an employee identifies himself or herself as a company

employee or discusses matters related to the company on a social media site,
the site must include a disclaimer on the front page stating that it does not
express the views of the company and that the employee is expressing only his
or her personal views. For example: "The views expressed on this website/web
log are mine alone and do not necessarily reflect the views of my employer."

Place the disclaimer in a prominent position and repeat it for each posting
expressing an opinion related to the company. Employees must keep in mind
that if they post information on a social media site that is in violation of
company policy and/or federal, state, or local law, the disclaimer will not shield
them from disciplinary action.

Workplace Monitoring
Workplace monitoring may be conducted by HSS to ensure quality control,
employee safety, security, and customer satisfaction. This may include
monitoring computers, voice mail and other electronic communications, as well
as physical searches if necessary.

Employees who regularly communicate with customers may have their

telephone conversations monitored or recorded. Telephone monitoring is used
to identify and correct performance problems through targeted training.
Improved job performance enhances our customers' image of HSS as well as
their satisfaction with our service.

Computers furnished to employees are the property of HSS. As such, computer

usage and files may be monitored or accessed.

HSS may conduct video surveillance areas as permitted by law and good taste.
Video monitoring is used to identify safety concerns, maintain quality control,
detect theft and misconduct, and discourage or prevent acts of harassment and
workplace violence.

Because HSS is sensitive to the legitimate privacy rights of employees, every

effort will be made to guarantee that workplace monitoring is done in an ethical
and respectful manner.
Rev 1.2 Page 54
HSS Employee Handbook

Security Inspections
HSS wishes to maintain a work environment that is free of illegal drugs, alcohol,
firearms, explosives, or other improper materials. To this end, HSS prohibits
the possession, transfer, sale, or use of such materials on its premises. HSS
requires the cooperation of employees in administering this policy.

Desks or other storage devices may be provided for the convenience of

employees, but remain the sole property of HSS. Accordingly, any agent or
representative of HSS can inspect them, as well as any articles found within
them, at any time, either with or without prior notice. This policy also extends
to vehicles parked on Company premises.

To safeguard the property of our employees, our customers and the Company,
and to help prevent the possession, sale and use of illegal drugs on HSS’s
premises, in keeping with the spirit and intent of the Company’s Drug Free
Workplace policy, HSS reserves the right to question and conduct personal
searches of employees and all other persons entering and leaving our premises,
and to inspect any packages, parcels, purses, handbags, briefcases, lunch
boxes, or any other possessions or articles carried to and from the Company
property. In addition, the Company reserves the right to search any employee’s
desk, files, locker, or any other area or article on our premises. In this
connection, it should be noted that all offices, desks, files, lockers and so forth,
are the property of HSS and are issued for the use of employees only during
their employment with the Company. Inspections may be conducted at any time
at the discretion of HSS. Managers need approval of the President prior to
inspection actions.

In connection with implementing this policy, the Company has posted notices in
conspicuous places throughout our facilities, informing all employees,
prospective employees, customers, visitors and all other persons of HSS’s policy
and right to question individuals and conduct inspections.

Persons entering the premises who refuse to cooperate in an inspection

conducted pursuant to this policy will not be permitted to enter the premises.
Employees working, or entering, or leaving the premises who refuse to
cooperate in the inspection, as well as employees who after the inspection are
believed to be in possession of stolen property, illegal drugs, or any other
unlawful materials will be sent immediately to the Human Resources department
and be subject to disciplinary action up to an including immediate discharge, if
on investigation they are found to be in violation of the Company’s security
procedures or any other HSS’s rules and regulations.

Rev 1.2 Page 55

HSS Employee Handbook

Workplace Violence Prevention

HSS is committed to preventing workplace violence and to maintaining a safe
work environment. Given the increasing violence in society in general, HSS has
adopted the following guidelines to deal with intimidation, harassment, or other
threats of (or actual) violence that may occur during business hours or on its
premises.

Employees, including managers, temporary employees and contractors, as well

as, vendors, customers and visitors should be treated with courtesy and respect
at all times. Employees are expected to refrain from fighting, "horseplay," or
other conduct that may be dangerous to themselves and others. Firearms,
weapons, and other dangerous or hazardous devices or substances are
prohibited from the premises of HSS without proper authorization. Possession
of a weapon without authorization is grounds for immediate termination.

Conduct that threatens, intimidates, or coerces another employee, a customer,

or a member of the public, at any time, including off-duty periods, will not be
tolerated. This prohibition includes acts of harassment, including harassment
that is based on an individual's sex, color, race, disability, age, national origin,
religion or any characteristic protected by federal, state, or local law.

Threats of (or actual) violence, both direct and indirect, should be reported
immediately to your manager, Human Resources or any other member of
management. This includes threats by employees, as well as threats by
customers, vendors, solicitors, or other members of the public. When reporting
a threat of violence, you should be as specific and detailed as possible.
Suspicious individuals or activities should also be reported immediately to
management. Do not place yourself in danger. If you see or hear a commotion
or disturbance near your workstation, do not try to intercede or see what is
happening.

HSS will promptly and thoroughly investigate all reports of threats of (or actual)
violence, and of suspicious individuals or activities. The identity of the individual
making a report will be protected as much as is practical. In order to maintain
workplace safety and the integrity of its investigation, HSS may suspend
employees, either with or without pay, pending investigation.

Anyone determined to be responsible for threats of (or actual) violence, or other

conduct that is in violation of these guidelines, will be subject to prompt
disciplinary action, up to and including immediate termination of employment.

HSS encourages employees to bring their disputes or differences with other

employees to the attention of their supervisors, or the Human Resources
Department, before the situation escalates into potential violence. HSS is eager
to assist in the resolution of employee disputes, and will not discipline
employees for raising legitimate concerns in good faith.
Rev 1.2 Page 56
HSS Employee Handbook

Suggestions for Improvement

HSS encourages you to bring forward suggestions and good ideas about how the
Company can be made a better place to work, how our products can be
improved and how our service to customers can be enhanced. You have the
opportunity to contribute to our future success and growth by submitting
suggestions for practical work-improvement or cost-savings ideas.

A suggestion is an idea that will benefit HSS by solving a problem, reducing

costs, improving operations or procedures, enhancing customer service,
eliminating waste or spoilage, or making HSS a better or safer place to work.

Suggestions should contain a description of the problem or condition to be

improved, a detailed explanation of the solution or improvement, and the
reasons why it should be implemented. Submit your suggestions to your
manager, Human Resources, if you would like the comments protected and you
are not identified to management; or in confidence you can send your
comment(s) to the HR Director and request confidentiality.

Rev 1.2 Page 57

HSS Employee Handbook

LEAVE OF ABSENCE

Rev 1.2 Page 58

HSS Employee Handbook

Family and Medical Leave

FAMILY AND MEDICAL LEAVE (“FMLA”) policy

Employees may be entitled to a leave of absence under the Family and Medical
Leave Act (FMLA). This policy provides employees information concerning FMLA
entitlements and obligations employees may have during such leaves. If you
have any questions concerning FMLA leave, you should contact your Supervisor
or Human Resources.

EMPLOYEES ELIGIBLE FOR FMLA LEAVE

FMLA leave is available to “eligible employees.” To be an “eligible employee”, an

employee must: (1) have been employed by the Company for at least 12
months (which need not be consecutive); (2) have been employed by the
Company for at least 1250 hours of service during the 12 month period
immediately preceding the commencement of the leave; and (3) be employed at
a worksite where 50 or more employees are located within 75 miles of the
worksite.

EMPLOYEE ENTITLEMENTS FOR FMLA LEAVE

As described below, the FMLA provides eligible employees with a right to leave,
health insurance benefits and, with some limited exceptions, job restoration.
The FMLA also entitles employees to certain written notices concerning their
potential eligibility for and designation of FMLA leave.

Basic FMLA Leave Entitlement

The FMLA provides eligible employees up to 12 workweeks of unpaid leave for
certain family and medical reasons during a 12 month period. The 12 month
period is determined on a “rolling” basis, looking back from the date leave is to
commence. Leave may be taken for any one, or for a combination, of the
following reasons:

• To care for the employee’s child after birth, or placement for adoption or
foster care;
• To care for the employee’s spouse, son, daughter or parent (but not in-
law) who has a serious health condition;
• For the employee’s own serious health condition (including any period
of incapacity due to pregnancy, prenatal medical care or childbirth) that
makes the employee unable to perform one or more of the essential
functions of the employee’s job; and/or
• Because of any qualifying exigency arising out of the fact that an
employee’s spouse, son, daughter or parent is a covered military member
on active duty or has been notified of an impending call or order to active
duty status in the National Guard or Reserves in support of contingency
operation.

Rev 1.2 Page 59

HSS Employee Handbook

A serious health condition is an illness, injury, impairment, or physical or

mental condition that involves either an overnight stay in a medical care facility,
or continuing treatment by a health care provider for a condition that either
prevents the employee from performing the functions of the employee’s job, or
prevents the qualified family member from participating in school or other daily
activities. Subject to certain conditions, the continuing treatment requirement
may be met by a period of incapacity of more than 3 consecutive calendar days
combined with at least two visits to a health care provider or one visit and a
regimen of continuing treatment, or incapacity due to pregnancy, or incapacity
due to a chronic condition. Other conditions may meet the definition of
continuing treatment.
Qualifying exigencies may include attending certain military events, arranging
for alternative childcare, addressing certain financial and legal arrangements,
attending certain counseling sessions, and attending post-deployment
reintegration briefings.

Additional Military Family Leave Entitlement (Injured

Service member Leave)
In addition to the basic FMLA leave entitlement discussed above, an eligible
employee who is the spouse, son, daughter, parent or next of kin of a covered
service member is entitled to take up to 26 weeks of leave during a single 12-
month period to care for the service member with a serious injury or illness.
Leave to care for a service member shall only be available during a single-12
month period and, when combined with other FMLA-qualifying leave, may not
exceed 26 weeks during the single 12-month period. The single 12-month
period begins on the first day an eligible employee takes leave to care for the
injured service member.

A “covered service member” means a member of the Armed Forces, including

a member of the National Guard or Reserves, who is undergoing medical
treatment, recuperation, or therapy, is otherwise in outpatient status, or is on
the temporary retired list, for a serious injury or illness. A member of the
Armed Forces would have a serious injury or illness if he/she has incurred an
injury or illness in the line of duty while on active duty in the Armed Forces
provided that the injury or illness may render the service member medically
unfit to perform duties of the member’s office, grade, rank or rating.

Intermittent Leave and Reduced Leave Schedules

FMLA leave usually will be taken for a period of consecutive days, weeks or
months. However, employees also are entitled to take FMLA leave intermittently
or on a reduced leave schedule when medically necessary due to a serious
health condition of the employee or covered family member or the serious injury
or illness of a covered service member.

Rev 1.2 Page 60

HSS Employee Handbook

Protection of Group Health Insurance Benefits and

Accrual of PTO
During FMLA leave, eligible employees are entitled to receive group health plan
coverage on the same terms and conditions as if they had continued to work.

PTO accruals will continue for a maximum of thirty (30) days from the effective
date of the leave. After thirty (30) days, PTO accruals are suspended until
return to active employment.

Restoration of Employment and Benefits

At the end of FMLA leave, subject to some exceptions, including situations where
job restoration of “key employees” will cause the Company substantial and
grievous economic injury, employees generally have a right to return to the
same or equivalent positions with equivalent pay, benefits and other
employment terms. the Facility will notify employees if they qualify as “key
employees”, if it intends to deny reinstatement, and of their rights in such
instances. Use of FMLA leave will not result in the loss of any employment
benefit that accrued prior to the start of an eligible employee’s FMLA leave.

Notice of Eligibility for, and Designation of, FMLA Leave

Employees requesting FMLA leave are entitled to receive written notice from the
Company telling them whether they are eligible for FMLA leave and, if not
eligible, the reasons why they are not eligible. When eligible for FMLA leave,
employees are entitled to receive written notice of: 1) their rights and
responsibilities in connection with such leave; 2) the Company’s designation of
leave as FMLA-qualifying or non-qualifying, if not FMLA-qualifying, the reasons
why; and 3) the amount of leave, if known, that will be counted against the
employee’s leave entitlement.

The Company may retroactively designate leave as FMLA leave with appropriate
written notice to employees provided the Company’s failure to designate leave
as FMLA-qualifying at an earlier date did not cause harm or injury to the
employee. In all cases where leaves qualify for FMLA protection, the Company
and employee can mutually agree that leave be retroactively designated as
FMLA leave.

Employee FMLA Leave Obligations

Employees who take FMLA leave must timely notify the Company of their need
for FMLA leave. The following describes the content and timing of such
employee notices.

Content of Employee Notice

To trigger FMLA leave protections, employees must inform the Company of the
need for FMLA-qualifying leave and the anticipated timing and duration of the
leave, if known. Employees may do this by either requesting FMLA leave
specifically, or explaining the reasons for leave so as to allow the Company to

Rev 1.2 Page 61

HSS Employee Handbook

determine that the leave is FMLA-qualifying. For example, employees might

explain that:

• a medical condition renders them unable to perform the functions

of their job;

• they are pregnant or have been hospitalized overnight;

• they or a covered family member are under the continuing care of

a health care provider;

• the leave is due to a qualifying exigency cause by a covered

military member being on active duty or called to active duty
status; or

• if the leave is for a family member, that the condition renders the
family member unable to perform daily activities or that the family
member is a covered service member with a serious injury or
illness.

Calling in “sick,” without providing the reasons for the needed leave, will not be
considered sufficient notice for FMLA leave under this policy. In the event that
an employee is absent for three days or more the Human Resources department
may contact you to determine if your leave should be considered a qualifying
event. Employees must respond to the Company’s questions in order to make a
determination. If employees fail to explain the reasons for FMLA leave, the
leave may be denied. When employees seek leave due to FMLA-qualifying
reasons for which the Company has previously provided FMLA-protected leave,
they must specifically reference the qualifying reason for the leave or the need
for FMLA leave.

Timing of Employee Notice

Employees must provide 30 days advance notice of the need to take FMLA leave
when the need is foreseeable. When 30 days notice is not possible, or the
approximate timing of the need for leave is not foreseeable, employees must
provide the Company notice of the need for leave as soon as practicable under
the facts and circumstances of the particular case. Employees, who fail to give
30 days’ notice for foreseeable leave without a reasonable excuse for the delay,
or otherwise fail to satisfy FMLA notice obligations, may have FMLA leave
delayed or denied.

Providing the Company with your “notice of the need for a leave” means you need to
ensure the HSS Group’s Human Resources Department is provided a written
request on when you need a leave, the general reason for the leave, your full legal
name, file number, and the means to contact you if additional information is needed.
In most situations, you can ask your immediate supervisor to forward this information
to the HR Department, but it is recommended you contact the HR Department
directly if you are not called within 2 to 3 days of your request. The HR Department
administers the leave process and will determine if your leave can be approved.

Rev 1.2 Page 62

HSS Employee Handbook

Cooperate in the Scheduling of Planned Medical Treatment

(Including Accepting Transfers to Alternative Positions) and
Intermittent Leave or Reduced Leave Schedules
When planning medical treatment, employees must consult with the Company
and make a reasonable effort to schedule treatment so as not to unduly disrupt
the Company’s operations, subject to the approval of an employee’s health care
provider. Employees must consult with the Company prior to the scheduling of
treatment to work out a treatment schedule which best suits the needs of both
the Company and the employees, subject to the approval of an employee’s
health care provider. If employees providing notice of the need to take FMLA
leave on an intermittent basis for planned medical treatment neglect to fulfill
this obligation, the Company may require employees to attempt to make such
arrangements, subject to the approval of the employee’s health care provider.

When employees take intermittent or reduced work schedule leave for

foreseeable planned medical treatment for the employee or a family member,
including during a period of recovery from a serious health condition or to care
for a covered service member, the Company may temporarily transfer
employees, during the period that the intermittent or reduced leave schedules
are required, to alternative positions with equivalent pay and benefits for which
the employees are qualified and which better accommodate recurring periods of
leave.

When employees seek intermittent leave or a reduced leave schedule for

reasons unrelated to the planning of medical treatment, upon request,
employees must advise the Company of the reason why such leave is medically
necessary. In such instances, the Company and employee shall attempt to work
out a leave schedule that meets the employee’s needs without unduly disrupting
the Company’s operations, subject to the approval of the employee’s health care
provider.

Submit Medical Certifications Supporting Need for FMLA Leave

(Unrelated to Requests for Military Family Leave)
Depending on the nature of FMLA leave sought, employees may be required to
submit medical certifications supporting their need for FMLA-qualifying leave.
As described below, there generally are three types of FMLA medical
certifications: an initial certification, a recertification, and a return to
work/fitness for duty certification.

It is the employee’s responsibility to provide the Company with timely, complete

and sufficient medical certifications. Whenever the Company requests
employees to provide FMLA medical certifications, employees must provide the
requested certifications within 15 calendar days after the Company’s request,
unless it is not practicable to do so despite an employee’s diligent, good faith
efforts. The Company shall inform employees if submitted medical certifications
are incomplete or insufficient and provide employees at least seven calendar
days to cure deficiencies. The Company will deny FMLA leave to employees who
fail to timely cure deficiencies or otherwise fail to timely submit requested
medical certifications.

Rev 1.2 Page 63

HSS Employee Handbook

With the employee’s permission, the Company (through individuals other than
an employee’s direct supervisor) may contact the employee’s health care
provider to authenticate or clarify completed and sufficient medical certifications.
If employees choose not to provide the Company with authorization allowing it
to clarify or authenticate certifications with health care providers, the Company
may deny FMLA leave if certifications are unclear.

Whenever the Company deems it appropriate to do so, it may waive its right to
receive timely, complete and/or sufficient FMLA medical certifications.

Initial Medical Certifications

Employees requesting leave because of their own, or a covered relation’s,
serious health condition, or to care for a covered service member, must supply
medical certification supporting the need for such leave from their health care
provider or, if applicable, the health care provider of their covered family or
service member. If employees provide at least 30 days notice of medical leave,
they should submit the medical certification before leave begins. A new initial
medical certification will be required on an annual basis for serious medical
conditions lasting beyond a single leave year.

If the Company has reason to doubt initial medical certifications, it may require
employees to obtain a second opinion at the Company’s expense. If the
opinions of the initial and second health care providers differ, the Company may,
at its expense, require employees to obtain a third, final and binding certification
from a health care provider designated or approved jointly by the Company and
the employee.

Medical Recertification
Depending on the circumstances and duration of FMLA leave, the Company may
require employees to provide recertification of medical conditions giving rise to
the need for leave. The Company will notify employees if recertification is
required and will give employees at least 15 calendar days to provide medical
recertification.

Return to Work/Fitness for Duty Medical Certifications

Unless notified that providing such certifications is not necessary, employees
returning to work from FMLA leaves that were taken because of their own
serious health conditions that made them unable to perform their jobs must
provide the Company medical certification confirming they are able to return to
work and the employees’ ability to perform the essential functions of the
employees’ position, with or without reasonable accommodation. The Company
may delay and/or deny job restoration until employees provide return to
work/fitness for duty certifications.

Rev 1.2 Page 64

HSS Employee Handbook

Submit Certifications Supporting Need for Military

Family Leave
Upon request, the first time employees seek leave due to qualifying exigencies
arising out of the active duty or call to active duty status of a covered military
members, the Company may require employees to provide: 1) a copy of the
covered military member’s active duty orders or other documentation issued by
the military indicating the covered military member is on active duty or call to
active duty status and the dates of the covered military member’s active duty
service; and 2) a certification from the employee setting forth information
concerning the nature of the qualifying exigency for which leave is requested.
Employees shall provide a copy of new active duty orders or other
documentation issued by the military for leaves arising out of qualifying
exigencies arising out of a different active duty or call to active duty status of
the same or a different covered military member.

When leave is taken to care for a covered service member with a serious injury
or illness, the Company may require employees to obtain certifications
completed by an authorized health care provider of the covered service member.
In addition, and in accordance with the FMLA regulations, the Company may
request that the certification submitted by employees set forth additional
information provided by the employee and/or the covered service member
confirming entitlement to such leave.

Substitute Paid Leave for Unpaid FMLA Leave

Employees must use any accrued paid time while taking unpaid FMLA leave.
The substitution of paid time for unpaid FMLA leave time does not extend the
length of FMLA leaves and the paid time will run concurrently with an
employee’s FMLA entitlement.

Leaves of absence taken in connection with a disability leave plan or workers’

compensation injury/illness shall run concurrently with any FMLA leave
entitlement. Upon written request, the Company will allow employees to use
accrued paid time to supplement any paid disability benefits. At no time, can
the supplemented pay result in the receipt of more than 100% of your weekly
salary.

Pay Employee’s Share of Health Insurance Premiums

As noted above, during FMLA leave, employees are entitled to continued group
health plan coverage under the same conditions as if they had continued to
work. Unless the Company notifies employees of other arrangements, whenever
employees are receiving pay from the Company during FMLA leave, the
Company will deduct the employee portion of the group health plan premium
from the employee’s paycheck in the same manner as if the employee was
actively working. If FMLA leave is unpaid, employees must pay their portion of
the group health premium through a payment plan arranged by Human
Resources.

Rev 1.2 Page 65

HSS Employee Handbook

The Company’s obligation to maintain health care coverage ceases if an

employee’s premium payment is more than 30 days late. If an employee’s
payment is more than 15 days late, the Company will send a letter notifying the
employee that coverage will be dropped on a specified date unless the co-
payment is received before that date. If employees do not return to work within
30 calendar days at the end of the leave period (unless employees cannot return
to work because of a serious health condition or other circumstances beyond
their control) they will be required to reimburse the Company for the cost of the
premiums the Company paid for maintaining coverage during their unpaid FMLA
leave.

Conducting Other Business while on Leave of Absence

Employees who accept other employment or go into business while on leave of

absence from HSS will be considered to have voluntarily resigned from
employment with HSS as of the date on which the leave of absence began.
However, all State or Federal law will be followed in specific situations.

Coordination of FMLA Leave with Other Leave Policies

The FMLA does not affect any federal, state or local law prohibiting
discrimination, or supersede any State or local law which provides greater family
or medical leave rights. For additional information concerning leave entitlements
and obligations that might arise when FMLA leave is either not available or
exhausted, please consult your Human Resources Representative for any
available options.

Questions and/or Complaints about FMLA Leave

If you have questions regarding this FMLA policy, please contact Human
Resources. THE Company is committed to complying with the FMLA and,
whenever necessary, shall interpret and apply this policy in a manner consistent
with the FMLA.

The FMLA makes it unlawful for employers to: 1) interfere with, restrain, or deny
the exercise of any right provided under FMLA; or 2) discharge or discriminate
against any person for opposing any practice made unlawful by FMLA or
involvement in any proceeding under or relating to FMLA. If employees believe
their FMLA rights have been violated, they should contact the Human Resources
Department immediately. The Company will investigate any FMLA complaints
and take prompt and appropriate remedial action to address and/or remedy any
FMLA violation. Employees also may file FMLA complaints with the United States
Department of Labor or may bring private lawsuits alleging FMLA violations.

Rev 1.2 Page 66

HSS Employee Handbook

Unpaid Personal Leave

Unpaid Personal leave may be granted by HSS at its sole discretion for a period
of up to ninety (90) calendar days every two (2) years. Approval by
management will take into consideration the employee’s performance, purpose
and the company ability to grant. The Company will not approve extensions to
Personal Leaves. You must use any available accrued PTO as part of the
approved period of leave. Subject to the terms, conditions, and limitations of the
applicable plans, HSS will continue to provide medical, dental, vision, life and
disability insurance benefits for the full period of the approved personal leave;
however, employees on personal leave are required to pay the full amount of
premiums in advance, or each pay period that the personal leave continues.

When a personal leave ends, every reasonable effort will be made to return the
employee to the same position, if it is available, or to a similar available position
for which the employee is qualified. However, HSS cannot guarantee
reinstatement.

Military Leave
A military leave of absence will be granted to any employee who is absent from
work because of service in the U.S. uniformed services in accordance with the
Uniformed Services Employment and Reemployment Rights Act (USERRA).
Advance notice of military service is required, unless military necessity prevents
such notice, or it is otherwise impossible or unreasonable.

Military Leaves less than 31 days and/or Reserves Duty

Employees who serve in U.S. military organizations or state militia groups may
take the necessary time off without pay to fulfill this obligation. You will retain
your legal rights for continued employment under existing state and federal
laws. You may use PTO to cover your absence but are not required to do so.
Subject to the terms, conditions and limitations of the applicable plans, HSS will
continue to provide medical, dental, vision, life and disability insurance benefits
while you are on short-term military leave; however you are required to pay
your portion of premiums in advance, or through payroll deductions upon your
return.

You are expected to notify your manager and apply with Human Resources as
soon as you are aware of the dates you will be on duty so that arrangements
can be made for replacement during your absence.

You are required to return to work for the first regularly scheduled workday after
the end of service, allowing reasonable travel time. If, through no fault of your
own, reporting back within that date is impossible or unreasonable, contact
Human Resources with your planned return date.
Rev 1.2 Page 67
HSS Employee Handbook

Extended Military Leaves (greater than 31 days)

You are expected to notify your manager and apply with Human Resources as
soon as you are aware of the dates you will be on duty so that arrangements
can be made for replacement during your absence. The leave will be unpaid.
However, you may use any available paid time off for the absence.

Continuation of health insurance benefits is available as required by USERRA

based on the length of the leave and subject to the terms, conditions and
limitations of the applicable plans for which you are otherwise eligible. Life and
disability insurance will continue during the period you are on extended military
leave. Benefit accruals, such as PTO, will continue for a maximum of thirty (30)
days. After thirty (30) days on leave of absence, benefit accruals will be
suspended until you resume active employment.

When you are released from active duty, you must apply for reinstatement in
accordance with USERRA and applicable state laws. You are eligible for
reemployment after completing military service provided that:

 You were on approved Military Leave of Absence

 You satisfactorily completed your active duty service
 You entered the military service directly from your employment with HSS
Upon reemployment, you will be placed in the position you would have attained
had you remained continuously employed, or a comparable one, depending on
the length of military service in accordance with USERRA. You will be treated as
though you were continuously employed for purposes of determining benefits
based on length of service.

Contact the Human Resources Department for more information or questions

about military leaves.

Pregnancy-Related Absences
HSS will not discriminate against any employee who requests an excused
absence for medical condition associated with pregnancy. Such leave requests
will be evaluated according to the Company policies outlined in this handbook
and all applicable federal and state laws.

Requests for time off associated with pregnancy and/or childbirth, such as
bonding and childcare, not related to medical disabilities for those conditions,
will be considered in the same manner as other requests for family leave.

Rev 1.2 Page 68

HSS Employee Handbook

EMPLOYEE CONDUCT POLICIES

Rev 1.2 Page 69

HSS Employee Handbook

Standards of Conduct
To ensure orderly operations and provide the best possible work environment,
HSS expects employees to follow rules of conduct that will protect the interests
and safety of employees and the organization. Whether you are on or off duty,
your conduct reflects on HSS. Consequently, we expect employees to observe
the highest standards of professionalism at all times.

It is not possible to list all the forms of behavior that are considered
unacceptable in the workplace. The following are examples of infractions of
rules of conduct that may result in disciplinary action, up to and including
immediate termination of employment.

 Theft or inappropriate removal or possession of property

 Falsification of Company records; including but not limited to employment
application and attendance records
 Possession, distribution, sale, transfer, or use of alcohol or illegal drugs in the
workplace, while on duty, or while operating Company-owned or provided
vehicles or equipment
 Fighting or threatening violence in the workplace
 Negligence or improper conduct leading to damage of Company-owned or
customer-owned property
 Insubordination or other disrespectful conduct
 Violation of safety or health rules
 Sexual or other forms of unlawful or unwelcome harassment
 Possession of dangerous or unauthorized materials, such as explosives or
firearms, in the workplace
 Excessive absenteeism or any absence without notice
 Unauthorized disclosure of “business secrets" or confidential information
 Violation of personnel policies
 Unsatisfactory performance or conduct
 Violation of any policies as stated in the handbook or other means

Rev 1.2 Page 70

HSS Employee Handbook

Drug and Alcohol Use

It is HSS’s desire to provide a drug-free, healthful, and safe workplace. To
promote this goal, you are required to report to work in appropriate mental and
physical condition to perform your job in a satisfactory manner.

While on HSS premises, and while conducting business-related activities off HSS
premises, you may not use, possess, distribute, sell, or be under the influence of
illegal drugs, including prescription drugs used without a current prescription or
in a manner inconsistent with medical directives. Also while on HSS’s premises
and while conducting business related activities off HSS’s premises, you may not
be under the influence of alcohol. The legal use of prescribed drugs is permitted
on the job, only if it does not impair your ability to perform the essential
functions of the job effectively, and in a safe manner that does not endanger
you or other individuals in the workplace.

Violations of this policy may lead to disciplinary action, up to and including

immediate termination of employment, and/or required participation in a
substance abuse rehabilitation or treatment program. Such violations may also
have legal consequences.

To inform employees about important provisions of this policy, HSS has

established a drug-free work place. Company employees will be subject to
passing of a drug test as a condition of employment. Consistent with applicable
law, the Company may test current employees post accident, if there is
reasonable suspicion of drug or alcohol abuse, and randomly. Such testing may
be initiated on a Company-wide basis, or individually if there is reasonable cause
to suspect drug abuse or at time of workplace injury. Testing is conducted in a
manner that provides maximum privacy and reliability.

If you have questions or concerns about substance dependency or abuse, you

are encouraged to discuss these matters with your manager or Human
Resources to receive assistance or referrals to appropriate resources in the
community.

If you have a drug or alcohol problem that has not resulted in disciplinary
action, including pending investigations that may lead to disciplinary action, you
may request approval to take a Personal Leave to participate in a rehabilitation
or treatment program through the Company’s or other health insurance benefit
coverage. Leave may be granted if you agree to abstain from use of the problem
substance; abide by HSS’s policies, rules, and prohibitions relating to conduct in
the workplace; and if granting the leave will not cause HSS any undue hardship.

You may contact Human Resources with questions, concerns or issues related to
drug or alcohol use in the workplace without fear of reprisal.

Rev 1.2 Page 71

HSS Employee Handbook

Sexual and Other Unlawful Harassment

HSS has adopted a policy of “zero tolerance” with respect to unlawful employee
harassment. HSS is committed to providing a work environment that is
pleasant, professional and free from all forms of discrimination and conduct that
can be considered harassing, coercive, or disruptive, including harassment
based on sex, disability, national origin/citizenship, age, gender, color, religion,
or pregnancy. Actions, words, jokes, or comments based on an individual's sex,
race, color, national origin, age, religion, disability, or any other legally
protected characteristic will not be tolerated.

Sexual harassment is defined as unwanted sexual advances, or visual, verbal, or

physical conduct of a sexual nature. This definition includes many forms of
offensive behavior and includes gender-based harassment of a person of the
same sex as the harasser. The following is a partial list of sexual harassment
examples:

 Unwanted sexual advances.

 Offering employment benefits in exchange for sexual favors.
 Making, or threatening, reprisals after a negative response to sexual
advances.
 Visual conduct that includes leering, making sexual gestures, or displaying of
sexually suggestive objects or pictures, cartoons or posters.
 Verbal conduct that includes making or using derogatory comments,
epithets, slurs, or jokes.
 Verbal sexual advances or propositions.
 Verbal abuse of a sexual nature, graphic verbal commentaries about an
individual's body, sexually degrading words used to describe an individual, or
suggestive or obscene letters, notes, or invitations.
 Physical conduct that includes touching, assaulting, or impeding or blocking
movements.

Unwelcome sexual advances (either verbal or physical), requests for sexual

favors, and other verbal or physical conduct of a sexual nature constitute sexual
harassment when: (1) submission to such conduct is made either explicitly or
implicitly a term or condition of employment; (2) submission or rejection of the
conduct is used as a basis for making employment decisions; or, (3) the conduct
has the purpose or effect of interfering with work performance or creating an
intimidating, hostile, or offensive work environment.

If you experience, or witness, sexual or other unlawful harassment in the

workplace, report it immediately to your manager. If the manager is
unavailable, or you believe it would be inappropriate to contact that person, you
should immediately contact the next level manager, Human Resources or the
President. You can raise concerns and make reports without fear of reprisal or
retaliation.

Rev 1.2 Page 72

HSS Employee Handbook

Allegations of sexual harassment will be quickly and discreetly investigated. To

the extent possible, your confidentiality, and that of any witnesses and the
alleged harasser, will be protected against unnecessary disclosure. When the
investigation is completed, you will be informed of the outcome of the
investigation.

Any manager who becomes aware of possible sexual or other unlawful

harassment must immediately advise the Human Resources Department, or a
member of senior management, so it can be investigated in a timely and
confidential manner. Anyone engaging in sexual or other unlawful harassment
will be subject to disciplinary action, up to and including immediate termination
of employment.

Attendance and Punctuality

To maintain a productive and fair work environment, HSS expects you to be
reliable and to be punctual in reporting for scheduled work. Absenteeism and
tardiness place a burden on other employees and on HSS, and regular
attendance is an essential function of all jobs at HSS. In the rare instances
when you cannot avoid being late to work, or are unable to work as scheduled,
you should notify your immediate manager directly, prior to your start time or in
an emergency within two hours of your anticipated tardiness or absence. If you
are unable to call in because of illness or emergency, have someone call for you.
Should the supervisor not be available, you should leave a message with your
immediate manager including a telephone number where you can be reached.
You will monitor that phone at all times, and if you need to switch phones, call
your supervisor immediately.

Absence from work for two (2) consecutive days without notifying your manager
or Human Resources will be considered a voluntary resignation. If you are
absent for three (3) or more successive days due to illness, you may be asked
to provide written documentation from your physician stating you are able to
return to work. If you are absent, or will be absent five (5) or more consecutive
days due to illness or injury, you should contact Human Resources about
eligibility for leave or Short-Term Disability insurance. At any time, your
manager can request that you provide a physician’s note on your inability to
work and/or ability to return to work.

HSS would like you to be ready for work at the beginning of your assigned daily
work hours, and to reasonably complete your assignments by the end of the
workday. Please let your manager know if you will be away from your
workstation for an extended period of time and when you expect to return. Poor
attendance and excessive tardiness are disruptive. Either may lead to
disciplinary action, up to and including immediate termination of employment.

Rev 1.2 Page 73

HSS Employee Handbook

Personal Appearance
Dress, grooming, and personal cleanliness standards contribute to the morale of
all employees and affect the business image HSS presents to customers and
visitors. Casual attire is generally acceptable for the entire week. However, you
may be requested to dress in appropriate professional business attire when
meeting with customers at their workplace, in public or hosting a meeting on
Company premises or we are having a client on site.

During business hours or when representing HSS, you are expected to present a
clean, neat, and tasteful appearance. You should dress and groom yourself
according to the requirements of your position and accepted social standards.

Your department manager is responsible for establishing a reasonable dress

code which is above the listed standard appropriate to the job you perform. If
your manager feels your personal appearance is inappropriate, you may be
asked to leave the workplace until you are properly dressed or groomed. Under
such circumstances, you may be required to make up the time away from work
or may not be paid for that time. Consult your manager or Human Resources if
you have questions as to what constitutes appropriate appearance. Where
necessary, reasonable accommodation may be made to a qualified individual
with a disability.

Following is a general list of appropriate and inappropriate dress for general

office employees:
General Office

Appropriate (Business Casual):

• Collared or banded collar
• Polo shirts
• Button front shirts
• Shirts and blouses
• Khaki pants
• Skirts, Slacks & Trousers
• Sweaters, cardigans, vests
• Shirts must cover midriff/abdomen
• Proper hair style and length to provide good business image for position held
• At times, business dress may be required if a customer will be present.
Employees will be notified in advance if at all possible.

Inappropriate:
• Clothing with graphics, sayings, are not business suitable
• Frayed, faded, soiled or torn clothing
• Jeans
• Clothing that is too tight or revealing
• Sports attire (i.e., shorts, sweats, jogging suits, spandex)
• Sundresses that are strapless or spaghetti strap
Rev 1.2 Page 74
HSS Employee Handbook

• T-shirts, tanks, tank tops, spaghetti straps or halter tops

• Facial piercing, visible rings etc
• Visible body art that could be considered offensive
• Flip flops that are the beach type
• Head gear
• Clothes which reveal midriff/abdomen
• Sneakers (unless for safety as required in hotel setting)

Customer Facility
• Appropriate as listed above
• No Facial Hair
• Uniforms or tops as designated by the Customer or Company
• Inappropriate list as listed above (however per uniform guidance Sneakers of
the appropriate type may be worn or required). Also, per the Customer
requirements

This list in not an exhaustive list and only a sample of the type image we need
to portray as a client centric company. The Personal Appearance policy is
effective immediately.

Resignation
Resignation is a voluntary act initiated by the employee to terminate
employment with HSS. HSS requests at least two (2) weeks' written resignation
notice from employees. HSS reserves the right to preclude an employee from
working out the two (2) weeks’ notice period and make the resignation effective
immediately.

Prior to an employee's departure, an exit interview may be scheduled by Human

Resources to discuss the effect of the resignation and benefits.

Solicitation and Distribution

Solicitation and/or distribution of material by an employee to another employee
is prohibited while either employee is on "work time." "Work time" is all time
when an employee is required or expected to be engaged in work tasks
throughout the facility. Solicitation includes, but is not limited to, sale of raffle
tickets, household goods (such as Avon products), food products or personal
items, as well as appeals for charitable contributions. In addition, distribution of
literature is prohibited in work areas at all times.

Bulletin boards are reserved for official Company communications on such items
as:

 Fair Employment Posters

 Employee announcements
Rev 1.2 Page 75
HSS Employee Handbook

 Internal memoranda
 Organization announcements
 Workers' compensation insurance information
 State disability insurance/unemployment insurance information

Union Free Workplace

Our Position: union-free and proud to be
We are proud to say that our Company is union-free. Not a single HSS
employee chooses to pay their hard-earned money to belong to a labor union.
We prefer to deal directly with our employees rather than through a union. Our
personnel policies and programs are designed to meet the needs of employees,
providing a positive environment where each employee enjoys maximum
opportunity for open communication, conflict resolution and job satisfaction. We
work hard to avoid the need for a union.

We want to express your problems and suggestions to us directly so that we can

understand each other better. You have that opportunity, and you may do so
without having a third party limit the direct communication between you and the
Facility. We will listen, and do our best to keep you safe, satisfied, informed and
motivated.

Union Cards
Signing a union card is a significant matter. If you are ever approached, we
urge you not to sign one. Union cards frequently contain language which
"authorizes" a union to take away the right you now have to speak for yourself
about your job. Unions sometimes use these signed cards and legal proceedings
to try and get into a plant without an election. In effect, the signed cards
become legally binding documents which turn many individual job rights over to
the union. Experience has shown that once a card is signed and given to the
union, it is difficult for an employee to get it back. If you are ever presented
with a union card and would like more information or clarification, please feel
free to speak with your supervisor or any other manager.

Disciplinary Action
We believe in administering equitable and consistent discipline for unsatisfactory
conduct in the workplace. The best disciplinary measure is the one that does
not have to be enforced, and comes from good leadership and fair supervision at
all employment levels. The goal of discipline is not to punish, but to help correct
unacceptable behavior.

HSS’s own best interest lies in ensuring fair treatment of employees, and in
making certain that disciplinary actions are prompt, uniform, and impartial. The
major purpose of any disciplinary action is to correct the problem, prevent
recurrence, and prepare the employee for satisfactory service in the future.
Rev 1.2 Page 76
HSS Employee Handbook

HSS may use progressive discipline at its discretion or may immediately

terminate an employee at its discretion. While every situation is different, we
generally believe in progressive discipline.

Disciplinary action may call for any of four steps -- verbal warning, written
warning, suspension with or without pay, or termination of employment --
depending on the severity of the problem and the number of occurrences. There
may be circumstances when one or more steps are bypassed.

Progressive discipline means that, with respect to disciplinary problems that the
manager needs you to be aware of to fix, to be deemed a satisfactory employee,
these steps will normally be followed: a first offense may call for a verbal
warning; a next offense may be followed by a written warning; another offense
may lead to a suspension; and still another offense may then lead to termination
of employment.

Of course, there are certain issues that are serious enough to justify either a
suspension, or, in extreme situations, termination of employment, without going
through the usual progressive discipline steps.

While it is impossible to list every type of behavior that may be deemed a

serious offense, the Standards of Conduct policy includes examples of problems
that may result in immediate suspension or termination of employment. There
are other examples within that listing of unsatisfactory conduct that may trigger
progressive discipline or termination.

By using progressive discipline, we hope that most employee problems can be

corrected at an early stage, benefiting both the employee and HSS.

Workplace Etiquette
We strive to maintain a positive work environment where employees treat each
other with respect and courtesy. Sometimes issues arise when employees are
unaware that their behavior in the workplace may be disruptive, offensive or
annoying to others. Many of these day-to-day issues can be addressed by
politely talking with a co-worker to bring the perceived problem to his or her
attention. In most cases, common sense will dictate an appropriate resolution.
HSS encourages employees to keep an open mind, and graciously accept
constructive feedback or a request to change behavior, that may be affecting
another employee's ability to concentrate and be productive.

The following workplace etiquette guidelines are not necessarily intended to be

hard and fast work rules with disciplinary consequences. They are simply
suggestions for appropriate workplace behavior to help everyone be more
conscientious and considerate of co-workers and the work environment. Please
contact the Human Resources Department if you have comments, concerns, or
suggestions regarding these workplace etiquette guidelines.

Rev 1.2 Page 77

HSS Employee Handbook

 Return copy machine and printer settings to their default settings after
changing them.
 Replace paper in the copy machine and printer paper trays when they are
empty.
 Retrieve print jobs in a timely manner and be sure to collect your pages.
 Keep the area around the copy machine and printers orderly and picked up.
 Avoid public accusations or criticisms of other employees. Address such
issues privately with those involved or your supervisor.
 Try to minimize unscheduled interruptions of other employees while they are
working.
 Communicate by e-mail or phone whenever possible, instead of walking
unexpectedly into someone's office or workspace. Keep mass distribution of
email to an absolute minimum so as not to disturb others.
 Be conscious of how your voice travels, and try to lower the volume of your
voice when talking on the phone or to others in open areas.
 Keep socializing to a minimum, and try to conduct conversations in areas
where the noise will not be distracting to others.
 Minimize talking between workspaces or over cubicle walls. Instead, conduct
conversations with others in their workspace.
 Refrain from using inappropriate language (swearing) that others may
overhear.
 Avoid discussions of your personal life/issues in public conversations that can
be easily overheard.
 Monitor the volume when listening to music, voice mail, or a speakerphone
that others can hear.
 Clean up after yourself and do not leave behind waste or discarded papers.
 Clean up conference rooms after use. Remove papers, beverages or food,
erase white boards and leave the room tidy for the next occupant.
 If you smoke, keep your break to one in the morning and one in the
afternoon to be respectful of time away from work, and within the limits of
your breaks.

Facilities & Safety

Safety Concerns
Safety is everyone's business. Safety is given primary importance in every
aspect of planning and performing HSS’s activities. We want to protect you
against injury and illness. Please follow our established safety policies. If you
are ever in doubt about how to safely perform a job or task, it is your
responsibility to ask your manager for assistance.

Parking Lot
You are encouraged to use the parking areas designated for our employees.
Remember to lock your car every day. Courtesy and common sense in parking
will help eliminate accidents, personal injuries and damage to vehicles. If you
should damage a car while parking or leaving, immediately report the incident,
along with the license number of both vehicles, and any other pertinent
information to your manager or Human Resources.
Rev 1.2 Page 78
HSS Employee Handbook

HSS is not responsible for any loss, theft, or damage to your vehicle or its
contents.

Work Areas
Keep cabinet doors, desk drawers and files closed when not in use. Open only
one drawer at a time. Remove or affix padding to torn or sharp corners and
edges. Keep personal items such as briefcases, handbags, and wallets out of
site or locked in a cabinet or desk. HSS is not responsible for any loss, theft or
damage to your personal effects.

Fire Prevention
Know the location of the fire extinguisher(s) and nearest exits in your area.
Notify your manager if an extinguisher is used or if the seal is broken. Make
sure flammable liquids are stored in appropriate and approved labeled safety
cans, and are not exposed to any ignition source. In case of fire, dial 911
immediately and contact your manager or Human Resources immediately.

Housekeeping
You are expected to keep your work area neat and orderly. Clear your desktop
and work surface at the end of each workday. Bathrooms in our facilities are for
everyone’s use, please do you share to keep them clean. If you spill a liquid,
clean it up immediately. Do not leave tools, materials or other objects on the
floor that may cause others to trip or fall. Keep aisles, stairways, exits,
electrical panels, fire extinguishers, and doorways clear. Always be aware of
good health and safety standards, including fire and loss prevention. Please
report anything that needs repair or replacement to your manager immediately.

Security
Maintaining the security of HSS’s buildings and property is every employee's
responsibility. Always keep cash and personal property secured. Shred or
otherwise properly dispose of sensitive or Company confidential information.
Use the proper entrances and exits and avoid unauthorized areas. When you
leave the premises, make sure that entrances are properly locked and secured.
HSS may exercise its right to inspect packages and parcels entering and leaving
Company premises.

Corporate employees need to adhere to the policy of managing the doors, exits
and alarms. Please familiarize yourself with that policy.

Property & Equipment Care

It is your responsibility to understand the equipment needed to perform your
duties. Under no circumstances should you operate a machine you deem
unsafe, nor should you modify or adjust the safeguards provided.

Rev 1.2 Page 79

HSS Employee Handbook

HANDBOOK ACKNOWLEDGMENT FORM

The employee handbook describes important information about HSS, and I
understand that I should consult the Human Resources Department regarding
any questions not answered in the handbook. I have entered into my
employment relationship with HSS voluntarily and acknowledge that there is no
specified length of employment. Accordingly, either HSS or I can terminate the
relationship at will, with or without cause. I understand the policy of at will
employment may only be altered if in writing and signed by me and the
President of the Company.

Since the information, policies, procedures and benefits described in the

handbook are necessarily subject to change, I acknowledge that revisions to the
handbook may occur, except to HSS’s policy of employment-at-will. Future
handbook changes will be communicated through official notices, and I
understand that revised information may supersede, modify, or eliminate
existing policies. Only a member of The Executive Team of HSS has the
authority to adopt any revisions to the policies in this handbook.

Furthermore, I acknowledge that this handbook is neither a contract of

employment nor a legal document. I have received the handbook, and I
understand that it is my responsibility to read and understand the policies
contained in this handbook and any revisions made to it.

Employee's Name (Print)

_______________________________________________

Employee's Signature

_______________________________________________

DATE: __________________________________________

HSS 2010 Rev1.1

Rev 1.2 Page 80