shoe city handbook (2012)

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Shoe City Employee Handbook Page 1 Welcome to Shoe City An Equal Opportunity Employer We are pleased to welcome you to our ever-growing Shoe City TEAM. We believe you will enjoy your work and your fellow employees here. We also believe you will find Shoe City a good place to work. Since it is not possible to meet and talk with each new associate, we would like to take this opportunity to greet you. You have joined an organization that has established an outstanding reputation for quality merchandise and service. Credit for this goes to every one of our employees. We take pride in our professionalism and pleasant working environment. We know you will experience the same pride and professionalism upon becoming an associate of Shoe City. We sincerely hope your association with us will prove to be a rewarding and satisfying experience, and extend to you our personal best wishes for your success and happiness at Shoe City. Cordially, Ted Greenberg President ESCO, LTD/Shoe City (August, 2012) Shoe City Handbook 7-12R3.indd 1 8/3/12 10:20:39 AM

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Page 1: Shoe City Handbook (2012)

Shoe City Employee Handbook Page 1

Welcome to Shoe CityAn Equal Opportunity Employer

We are pleased to welcome you to our ever-growing Shoe City TEAM. We believe you will enjoy your work and your fellow employees here. We also believe you will find Shoe City a good place to work. Since it is not possible to meet and talk with each new associate, we would like to take this opportunity to greet you.

You have joined an organization that has established an outstanding reputation for quality merchandise and service. Credit for this goes to every one of our employees. We take pride in our professionalism and pleasant working environment. We know you will experience the same pride and professionalism upon becoming an associate of Shoe City.

We sincerely hope your association with us will prove to be a rewarding and satisfying experience, and extend to you our personal best wishes for your success and happiness at Shoe City.

Cordially,

Ted GreenbergPresidentESCO, LTD/Shoe City

(August, 2012)

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Page 2: Shoe City Handbook (2012)

Shoe City Employee Handbook Page 2

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The Purpose of this Handbook

This Handbook has been prepared to inform you about Shoe City's philosophy, employment practices, and policies, as well as benefits provided to you as a valued associate and the conduct expected from you. In addition to clarifying responsibilities, we hope this Employee Handbook also gives you an indication of Shoe City's interest in the welfare of all who work here.

The policies and procedures outlined in this Handbook should be regarded as guidelines, no more than general summaries of the benefits, work rules and policies they address. From time to time, the informa-tion included in our Employee Handbook may change as Shoe City makes decisions in order to conduct its business in a manner that is beneficial to the employees and our company.

The policies contained in this Handbook are not intended as a contract of employment and may be added to or changed as needed by management, except that we will not modify our policy of employment-at-will, which enables Shoe City or the employee to terminate the employment relationship at any time for any reason.

We hope this handbook will help you feel comfortable with us. We depend on you, your success is our success. Please don't hesitate to ask any questions. If anything is unclear, please discuss the matter with your manager. You are responsible for reading and understanding this Employee Handbook, and your performance evaluations will reflect your adherence to Shoe City's policies.

We ask that you read this Handbook carefully, and refer to it whenever questions arise.

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Contents

Employee Relations ................................................................................................................................9 Background Investigation .................................................................................................................10 How You Were Selected ....................................................................................................................10 New Employee Orientation ..............................................................................................................10 Probation/Review Period ..................................................................................................................11 Performance Reviews .......................................................................................................................11 Compensation Reviews .....................................................................................................................11 At-Will Employment .........................................................................................................................11 Personnel File ....................................................................................................................................12 Store Meetings ..................................................................................................................................12 Information Center ............................................................................................................................12 Complaints, Concerns and Suggestions Procedure ...........................................................................13 Complaint, Concern or Suggestion Conference ................................................................................14 Open Door Policy and Counseling ...................................................................................................14

Company Rules and Regulations ........................................................................................................15 What We Expect From You ...............................................................................................................15 Dress Code ........................................................................................................................................15 Work Schedules.................................................................................................................................16 Availability ........................................................................................................................................16 Time Off ............................................................................................................................................16 Time Records ....................................................................................................................................16 Punctuality ........................................................................................................................................16 Scheduled Breaks ..............................................................................................................................16 Absences ..........................................................................................................................................17 Comply With Our Standards Of Attendance .....................................................................................17 Extended Hours .................................................................................................................................17 Moonlighting.....................................................................................................................................18 Confidentiality...................................................................................................................................18 Theft ..................................................................................................................................................18 Gifts...................................................................................................................................................18 Phone Use .........................................................................................................................................18 Violence ............................................................................................................................................19 Weapons ............................................................................................................................................19 Fax and Computer Policy ..................................................................................................................19 Food ..................................................................................................................................................19 Smoking ............................................................................................................................................19 Drugs and Alcohol ............................................................................................................................20 Maintaining A Drug And Alcohol Free Workplace .....................................................................20 Examinations and Searches for Drugs and Alcohol ....................................................................20 Harassment ........................................................................................................................................21 Sexual Harassment Policy ...........................................................................................................21 Employment Of Relatives .................................................................................................................22 Socializing .........................................................................................................................................22 Personal Items ...................................................................................................................................22 Inspection Of Packages .....................................................................................................................22

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Standard Of Conduct ..........................................................................................................................23 Corrective Action and Procedures ....................................................................................................23 Suspension ........................................................................................................................................23 Inventory Control ..............................................................................................................................24 Shoe City Theft Hot Line ..................................................................................................................24 Honesty Rewards ..............................................................................................................................24 Grounds for Immediate Dismissal ....................................................................................................25 Wage and Salary Policies ..................................................................................................................27 Paydate/Deposit ................................................................................................................................27 Deductions From Paycheck ..............................................................................................................27 Wage Garnishments ..........................................................................................................................27 Errors In Pay .....................................................................................................................................28 Overtime ...........................................................................................................................................28 Uncontrollable Business Interruptions ..............................................................................................28

Company Benefits ................................................................................................................................29 Eligibility ..........................................................................................................................................29 Discounts...........................................................................................................................................29 Special Purchases ..............................................................................................................................29 Vacations ...........................................................................................................................................30 Holidays ...........................................................................................................................................31 Jury Duty ...........................................................................................................................................31 Health, Dental, and Optical Care Insurance ......................................................................................32 Life Insurance ...................................................................................................................................32 Other Insurance .................................................................................................................................32 125-Flex Plan ....................................................................................................................................32 Shoe City 401(K) Plan ......................................................................................................................33 COBRA Continuation Of Coverage ..................................................................................................34 Family Medical Leave of Absence ...................................................................................................35 Basic Requirements for Medical Certification of Need for Leave: ............................................35 Notification and Reporting Requirements: .................................................................................36 Status of Employee Benefits During Family or Medical Leave of Absence: .............................36 Procedures and Forms to be Completed: ....................................................................................36 Additional Items Included in the Family and Medical Leave Act: .............................................37

Separation .............................................................................................................................................38 Notice ................................................................................................................................................38 Separation and Vacation ....................................................................................................................38 Final Paycheck ..................................................................................................................................38

Statement On Employment .................................................................................................................39

Notes ......................................................................................................................................................41Employee Acknowledgment .................................................................................................................42

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Employee Relations

Shoe City is an equal opportunity employer. It is our policy to provide equal employment regardless of age, sex, color, race, creed, national origin or ancestry, religion, marital status, sexual preference, status as a disabled or Vietnam era veteran, or status as a qualified individual with disability, in accordance with applicable laws. This is reflected in all Shoe City practices and policies regarding recruiting, hiring, train-ing, promotions, transfers, rates of pay, layoffs, and other forms of compensation. All matters relating to employment are based upon ability to perform the job, as well as dependability and reliability once hired.

Shoe City believes equal opportunity is not just a legal issue but also a moral one, and it is an ongoing concern and obligation for each of us.

Shoe City believes in an “open door” policy to resolve employee concerns, problems, and complaints. In the normal course of day-to-day operations, discrepancies are bound to arise. In these cases we recommend direct, verbal communications with your immediate supervisor. In most situations, your Manager will be able to resolve your problem.

If your Manager cannot help you, or you feel that the problem needs the attention of someone other than the Manager, you should contact the next level supervisor.

If your problem is still not solved at this point, to your satisfaction, you should submit your complaint in writing to the Human Resources Department. At this point, every effort will be made by management to resolve your problem or answer any questions you may have. However, the decision made by management must be final and complied with by all parties involved.

This “open door” policy assures you of fairness and consistency and our concern for your future and status with the ever growing TEAM of Shoe City.

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Page 10: Shoe City Handbook (2012)

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Background Investigation

Following the requirements imposed by the Federal Truth in Lending and the Fair Credit Reporting Acts, Shoe City may conduct a pre-employment check on all applicants who are offered and who accept an offer of employment. Your employment with us may be conditional upon our review of the information in the check. Shoe City reserves the right to conduct this check at any time after you have been employed.

How You Were Selected

We carefully select our employees through written applications, personal interviews and reference checks. After all available information was carefully considered and evaluated, you were selected to become a member of our team.

This careful selection process helps Shoe City to find and employ people who are concerned with their own personal success and the success of Shoe City, people who want to do a job well and who can carry on their work with skill and ability, and people who are comfortable with Shoe City and who can work well with our team.

New Employee Orientation

As a new hire, you will have an orientation with your Manager. You will fill out all of our necessary paper-work as it relates to taxes, eligibility to work, etc. You will also receive a copy of the Employee Handbook and several important facts will be pointed out to you. It will be explained when you are eligible to apply for benefits, etc.

This is a good time to ask any questions you may have in relation to our policies, procedures, or your job.

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Page 11: Shoe City Handbook (2012)

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Probation/Review Period

A 120 day Probation Period is in effect for all new employees, and during that period you will not acquire benefits described in this Handbook. This Probation Period will be a time for getting to know your fellow employees, your manager, and the tasks involved in your job position, as well as becoming familiar with Shoe City products and services. Your manager will work closely with you to help you understand the needs and processes of your job.

This Probation Period is a try-out time for both you, as an employee, and Shoe City, as an employer. Dur-ing this time, your supervisor will monitor your progress, performance, and suitability for employment. This is also the time period that allows you to evaluate Shoe City as well. At any time during this period, you may be dismissed or resign without any documented reason. Completion of this Probationary/Review Period does not change your status as an at-will employee.

Performance Reviews

Your manager is continuously evaluating your job performance. Day-to-day interaction between you and your manager should give you a sense of how your manager perceives your performance. The primary reason for performance reviews is to identify your strengths and weaknesses. Your manager is interested in helping you to progress and grow in order to achieve personal as well as work-related goals.

Compensation Reviews

Salaries are reviewed on an annual basis. Although increases are not guaranteed, Shoe City will make every effort to provide salary increases based strictly and entirely on performance review ratings, not necessar-ily length-of-service or the cost-of-living. Having your compensation reviewed does not necessarily mean that you will be given an increase.

The reviews are used by Shoe City to keep you informed of your progress and to keep our lines of two way communication open. It should also be noted that these reviews are completely confidential between you and management.

At-Will Employment

Your employment with Shoe City is 'at-will' in that it can be terminated with or without cause, and with or without notice, at any time, at the option of either Shoe City or yourself.

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Page 12: Shoe City Handbook (2012)

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Personnel File

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

1. Legal name 2. Home address 3. Home telephone number 4. Person to call in case of emergency 5. Number of dependents 6. Marital status 7. Change of beneficiary 8. Driving record or status of driver's license, if you operate any Shoe City vehicles 9. Military or draft status 10. Exemptions on your W-4 tax form 11. Social Security Number

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

Store Meetings

On occasion, we may request that you attend a company-sponsored or store meeting. If this is scheduled during your regular working hours, your attendance is required. If it is held during your non-working hours, you will be paid for time spent at the meeting,

Store meetings are mandatory and require everyone's participation. Refusal to attend may result in disci-plinary action up to and including termination.

Information Center

Your Information Center or bulletin board is our official way of keeping everyone informed about new policies, changes in procedures, contests, and special events. Information of general interest is posted regularly. Please form the habit of reading the bulletins regularly so that you will be familiar with the information posted on it.

Only authorized personnel are permitted to remove, or alter any notice on the Information Center. If you want to have notices posted, see your manager for instructions.

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Page 13: Shoe City Handbook (2012)

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Complaints, Concerns and Suggestions Procedure

An efficient, successful operation and satisfied employees go hand-in-hand. Employee complaints, concerns, and suggestions are of interest to Shoe City, regardless of whether the problems or ideas are large or small.

In order to provide for prompt and efficient evaluation of and response to complaints, concerns, and sug-gestions, Shoe City has established a complaints, concerns, and suggestion procedure for all employees. It will always be our policy to give full consideration to every employee's opinion. There will be no retalia-tion against or toward anyone for his or her part in presenting complaints, concerns, and suggestions in a reasonable manner and in accordance with the following procedures.

Talking things over usually helps. When you have a concern or other problem, the person you report to is the person to see first. If this does not settle the matter, you are entitled to go to his or her immediate supervisor to see what can be done.

The Complaint, Concerns and Suggestions Procedure are as follows:

A. See Your Manager First

If you have a concern, or if you have a suggestion, we would like to hear about it. If you feel that any working condition, policy, practice, or action by Shoe City or by any member of management is unjust, you should tell your manager about it and discuss the matter confidentially and in private. Establish with your manager an appropriate time and place to discuss your concern. If for some reason, your manager fails to offer you the opportunity to discuss the matter, or if the discussion does not lead to a satisfactory conclusion, then proceed to the next step.

B. Put it in Writing

It makes a difference when you put your complaints, concerns and suggestions in writing - understanding the situation and what you think the ideal condition should be, as well as some ideas for achieving your desired condition, will help your manager go to work for you. Explain the present situation, the desired condition, and your proposed solution/suggestion. Submit the written complaint to your manager.

If, after discussion with your manager, the situation remains unsettled, the matter should be referred to your next level supervisor. Make an appointment to do so. Further describe the situation or problem, name any witnesses, if applicable, and be sure to mention any times, dates, and places. Also, include a summary of your communications with your manager on the subject. Put this information into an envelope, seal it and either mail or deliver it to the next level supervisor. Of course, your complaint, concern or suggestion may not require all this information, but could be a brief statement of a minor complaint about a working condition or a simple cost-saving idea. Whatever it is, we want to know about it. The next level supervisor will schedule a discussion with you.

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Page 14: Shoe City Handbook (2012)

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Complaint, Concern or Suggestion Conference

Management will review the complaint, concern, or suggestion and may call you in for a scheduled confer-ence. This may, at his or her discretion, be with or without the presence of your manager. At this confer-ence, you should feel free to openly discuss your complaint and substantiate your reasons for feeling the way you do. Management will consider your input and render a decision. In most cases, the matter will usually be resolved at this stage. If you are still displeased with the decision made, you should bring the problem directly to the Director of Human Resources. The problem will be discussed with all concerned and a final decision rendered. The sole purpose of this procedure is to give each employee and Shoe City a chance to clear up any prob-lem, complaint, friction, or concern and to evaluate employee suggestions. In order for this policy to work, each employee and each member of management must want it to work, and be willing to do whatever it takes to make it work.

Open Door Policy and Counseling

Normally, you will be expected to use the Complaints, Concerns, and Suggestions Procedure outlined earlier in this manual to resolve a problem. However, if the problem or complaint is of a personal nature, or a very delicate matter, you may meet first with any member of Management, including the Director of Human Resources to discuss it. He or she will decide if you should first discuss the problem with your manager or next level supervisor. If so, you will be directed to use the Complaints, Concerns, and Sug-gestion Procedure. If the complaint, suggestion, or question is of such a nature that resolution would be hampered by the Complaints, Concerns and Suggestion Procedure, the management person you contact will take the appropriate action.

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Page 15: Shoe City Handbook (2012)

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Dress Code

Personal appearance should be a matter of concern for each employee. A neat, tasteful appearance con-tributes to the positive impression you make on our customers. You are expected to be suitably attired and groomed during working hours. A good clean appearance bolsters your own poise and self-confidence and greatly enhances our company image. Be proud to be a part of a winning team. Your manager has the sole authorization to determine if you are following Shoe City's dress code, and anyone who violates this standard will be subject to appropriate disciplinary action.

In order to establish uniformity in the stores and make it easy for our customers to identify our employees, we have established the following dress code:

STORE OUTLINE DRESS CODE

• NO plain tee's, plain sweatshirts or plain hoodies.• NO ripped or holes in jeans.• NO sweatpants, windpants, trackpants, sweatshorts, basketball or boardshorts.• NO thong, slides, athletic, beach sandals or bedroom slippers.• NO excessive jewelry or facial piercing, hats or other head gear.• NO extreme haircuts and/or color (as determined by management).• NO cell phones except by store manager/assistant, or earpieces. NO EXCEPTIONS

WAREhOUSE/DISTRIbUTION CENTER DRESS CODE

• NO skirts, dresses, midriff tops, halter tops or tank tops.• NO sandals, slides, or bedroom slippers.• NO excessive jewelry or piercings.• NO earpieces. NO EXCEPTIONS

OffICE OUTLINE

• NO plain tee's, plain sweatshirts or plain hoodies.• NO ripped or holes in jeans.• NO sweatpants, windpants, trackpants, sweatshorts, basketball or boardshorts.• NO thong, slides, athletic, beach sandals or bedroom slippers.• NO excessive jewelry or facial piercings.• NO extreme haircuts and/or color (as determined by management).• NO earpieces. NO EXCEPTIONS

We have a relaxed casual friday. If an individual is attending a business meeting on friday, NO bEACh, AThLETIC SANDALS OR SLIDES ALLOWED.

All employees are expected to arrive at the store dressed for work. No one will be permitted to change clothes for any reason on company premises. NO EXCEPTIONS.

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Page 16: Shoe City Handbook (2012)

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Work Schedules

Work schedules will be posted during the week prior to becoming effective. It is your responsibility to check and record your schedule.

Availability

Full time employees must be available to work any and all hours their store is open. Special schedules will not be made for any full time employee, as it is unfair to their co-workers. Temporary situations will be accommodated where possible.

Time Off

All requests for time off must be submitted in writing prior to the schedule being posted for that week (emergencies excluded). We will make every effort to accommodate your request, but we maintain the option to say no if your request conflicts with business.

Time Records

All employees’ hours worked will be recorded by time in/out function on the store's computer register or by time cards in the warehouse and offices. Each employee is responsible for clocking their time in and out. You may not clock in until you are ready to begin work. Any falsification or clocking someone else in or out is subject to disciplinary action, up to and including termination.

Punctuality

Your arrival time must be early enough to enable you to be on the sales floor and ready to work when you are scheduled. We recommend approximately ten minutes prior to scheduled start time. Not being on the sales floor at the scheduled time will be considered tardiness and may result in an unsatisfactory review, and / or disciplinary action. Excessive tardiness is grounds for termination.

Scheduled Breaks

All employees working five hours or more are entitled to, and must take, a thirty minute break. These breaks will be scheduled by management. However, all breaks in stores closing by 7:00 PM must be completed by 3:00 PM, and all breaks in stores closing by 9:30 PM must be completed by 6:00 PM. Breaks must not be scheduled or taken during busy time periods. Any break not taken must be approved by management.

Always be sure to return to work on time at the end of any break. Leaving early or returning late to or from breaks can result in disciplinary action.

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

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Page 17: Shoe City Handbook (2012)

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Absences

From time to time we all become ill. If this illness is serious enough for you to miss work, the following is your responsibility:

1. You must speak to your supervisor prior to the beginning of each work day you will be out. (At least one hour before you are scheduled to report to work) If the phone is busy, continue to call until you reach your supervisor.

2. You must find a replacement for yourself for that day subject to your supervisor’s approval.

3. Any illness that keeps you from work for more than two days requires a doctor’s written excuse upon your return.

4. Calls to report absences must be made by you and not someone else, unless you are incapacitated.

5. Not calling to report an absence is grounds for immediate dismissal. Absence from work without notifying your manager/supervisor will be considered a voluntary resignation.

Comply With Our Standards Of Attendance

It is your obligation to notify your manager/supervisor, as far as possible in advance of your scheduled work day, whenever you will be late or absent, to state the reason for such lateness or absence, and to advise when you expect to return to work, including a telephone number where you can be reached. If you are physically unable to make a personal call, you must have someone else call for you. A written medical excuse may be requested by Shoe City from the employee's doctor, for any absence, at Shoe City's discre-tion, and will always be requested for absences longer than two days in length.

No absence is automatically considered to be 'excused' as such. Chronic, habitual, or excessive absenteeism or lateness, as judged by Shoe City in its discretion may result in disciplinary action, up to and including termination.

Extended Hours

There will be certain times during the month and holidays that the store will close later than usual. These busy times are very important to our business, and you may be asked to work later than you are scheduled. You will be expected to comply.

Due to unforeseen circumstances, you may be asked to work before or after your normal work schedule, even though your hours may be extended. You will be expected to make the necessary arrangements to be on the job. These circumstances may include holiday weeks, special openings, employee absences, excess volume, unexpected situations, or emergencies.

During some holiday weeks, your store may be open on Sunday, even though it is normally closed. On these Sundays, you may be asked to work. You will be expected to make the necessary arrangements to be on the job. Any problems or special circumstances should be discussed with your manager/supervisor.

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Moonlighting

As an employee of Shoe City, you are expected to refrain from any other employment or business activity that causes a conflict of interest with your current position.

No employee may take an outside job, either for pay or as a donation of his or her personal time, with a competitor of Shoe City; nor may they do work on their own if it competes in any way with the sales of products we provide customers. Any exceptions to this policy must be approved in advance, in writing by an officer of the company.

Confidentiality

Any information concerning the business of Shoe City, its customers, suppliers, subcontractors, dealers, employees or personnel associated with Shoe City is confidential and restricted. You may not reveal any such information except under the direction of your Manager or with his approval. If you are not sure about whether particular information is subject to this confidentiality duty, refer inquiries to your Manager.

Also, we cannot permit you to pursue activities which, in the judgement of Shoe City, may be in conflict with the general welfare of Shoe City or have the appearance of impropriety, or which might otherwise damage Shoe City's reputation, or interfere with our business or the proper performance of your duties.

Certain activities which obviously are not proper for employees include but are not limited to employment with a competitor; use of Shoe City's time, facilities or equipment to engage in another business or occupa-tion; and any outside activity which results in your losing time from work, being distracted from work, or otherwise performing unsatisfactorily, or which could result in an appearance of conflict.

Theft

Internal theft is unacceptable. Stealing from the Company is like stealing from yourself. Losses from theft immediately affect our ability to increase salaries and can jeopardize the profitability of the company.

Theft is a very serious offense and will not be tolerated by Shoe City. Employees violating this policy will be subject to immediate dismissal and prosecution. Discount abuse is considered theft by Shoe City.

Gifts

It is important that all of our employees observe high ethical standards and treat both our customers and fellow employees fairly. You cannot allow personal or financial relationships with customers to interfere with the best interests of Shoe City. Shoe City prohibits accepting gifts or tips from a customer. Gifts from a supplier, or vendor representative are acceptable only if pre-authorized by the office.

Phone Use

Store phones are for business use only. Associates must ask management permission to use the phone. No personal calls are allowed except in the case of an emergency.

This policy includes outgoing as well as incoming calls. Directory Assistance and absolutely no long distance calls will be allowed on the store phone. Cell phone use by any Shoe City employee while anywhere in a Shoe City Store is STRICTLY FORBIDDEN.

Abuse of the phone policy will result in disciplinary action. Continued abuse will result in termination.

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Page 19: Shoe City Handbook (2012)

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Violence

Threatened or physical violence toward any supervisor, co-worker, or customer is strictly prohibited (except in case of obvious or proven self-defense) and is grounds for immediate dismissal and prosecution.

Weapons

No weapons of any description, including but not limited to guns, knives, numchucks, brass knuckles, etc., are allowed in the store at any time.

Fax and Computer Policy

All electronic and telephonic communications systems, computers, and other business equipment and com-munications, including phone, mail, e-mail, fax machines, and similar business devices are the sole property of Shoe City. Any information transmitted by, received from, or stored in such equipment is also the property of Shoe City.

Use of Shoe City business systems for improper, disruptive, or illegal purposes, including but not limited to, attempting to circumvent user authentication or destruction of data is prohibited. Employees found to have violated these policies will be subject to disciplinary action, up to and including termination of employment. Those employees who have access to the Company's internet and e-mail system will be required to sign an Internet Technology Policy Form.

Food

Eating or drinking on the sales floor is not allowed. If you must eat or drink in the store, it may be done only in an area designated by management.

Smoking

Shoe City is a smoke-free environment. Smoking is strictly prohibited at any time on company premises, except in designated areas.

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Page 20: Shoe City Handbook (2012)

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Drugs and Alcohol

Maintaining A Drug And Alcohol Free Workplace

In order to protect the safety, health and productivity of all employees and general welfare of Shoe City, the following actions are considered to be unacceptable conduct. Violation is grounds for immediate dis-missal. The following includes having possession or being under the influence of, before work, lunch time and break times.

1. Bringing onto Shoe City's premises, having possession of, having present in bodily system, being under the influence of, consuming, distributing or attempting to distribute, manufacturing or dis-pensing any form of narcotic, depressant, stimulant, hallucinogen, or any kind of perception-altering drug or controlled substance (except only the taking of prescribed drugs under the direction of a physician, to the extent that it does not impair job performance or threaten safety, health, security or property), at any time during the hours between the beginning and end of your work day.

2. Bringing onto Shoe City's premises, having possession of, being under the influence of, using, con-suming, distributing or attempting to distribute, manufacturing or dispensing any form of alcohol at any time during the hours between the beginning of your work day, whether or not on Shoe City business at any time

3. Refusing to cooperate in or submit to questioning, medical or physical tests or examination, or an inspection or search, when requested by Shoe City or its designee.

Examinations and Searches for Drugs and Alcohol

Shoe City reserves the right, at its discretion, to the extent permitted by law, to require employees and applicants for positions to submit to physical examinations or tests by a person or agency designated by Shoe City, at Shoe City's expense. Such examinations can include but are not necessarily limited to blood, urine, breath, or other tests for evidence of the presence of alcohol, drugs, and perception altering or other substances in the body.

As is further set forth in this Handbook, Shoe City also reserves the right to search employees packages, lockers, handbags, and similar items while on company property and business.

In particular, Shoe City reserves the right, in its discretion, to examine or test for the presence of alcohol and drugs (as stated above) in situations as, but not limited to, the following, in accordance with applicable law:

1. As part of a pre-employment physical examination.

2. As part of a physical examination which Shoe City may require employees to undergo, on a schedule to be determined by Shoe City.

3. Following a safety infraction or work-related accident that does or might cause bodily injury or damage to property.

4. Specific employee behavior on the job which Shoe City determines gives management reasonable suspicion that such behavior might be or is due to alcohol or drug use.

5. As otherwise required or permitted by applicable law.

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Harassment

Harassment of other employees including, but not limited to, verbal and physical conduct or unwelcome advances with regard to, or on the basis of sex, race, color, national origin, ancestry, age, religion, creed, or marital status is strictly forbidden. Harassment of any type should be reported to management immediately. It will be addressed by the company in a discreet manner.

Sexual Harassment Policy

A. Policy of No Sexual harassment

It is the policy of Shoe City that there shall be no harassment of any employee on account of an employee's sex. Shoe City will not tolerate sexual harassment of its employees by anyone: supervisors, other employ-ees, clients, or customers. Persons harassing others will be dealt with swiftly and vigorously. Anyone who violates this policy will be subject to disciplinary action up to and including termination.

B. Definition of Sexual Harassment

Sexual harassment is behavior of a sexual nature which is unwelcomed and personally offensive to its recipients. Unwelcomed sexual advances, requests for sexual favors, and other verbal or physical conduct of a sexual nature constitutes "sexual harassment" when: (1) submission to such conduct is made explicitly or implicitly a condition of an individual's employment; (2) submission to or rejection of such conduct is used as a basis for an employment decision affecting the employee; or (3) the harassment has the purpose or effect of unreasonably interfering with the employee's work performance or creating an environment which is intimidating, hostile, or offensive to the employee.

C. Compliant Procedure

Any employee who feels that he or she has been sexually harassed should immediately report the matter to his or her supervisor. If that person is unavailable or the employee believes that it would be inappropriate to contact his or her supervisor, the employee should contact the Human Resources Director.

Any supervisor or manager who becomes aware of any possible sexual harassment should immediately advise the Human Resources Director who will handle such matters in a lawful manner to ensure that such conduct does not continue. All complaints of sexual harassment will be investigated in as discreet and confidential fashion as possible. No person will be adversely affected in employment with Shoe City as a result of bringing complaints of sexual harassment.

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Employment Of Relatives

If you and members of your immediate family are employed by Shoe City, one may not supervise the other nor may you work in the same location. If the employees are unable to develop a workable solution, the management of Shoe City will decide which employee may be transferred in such situations. Shoe City reserves the right to transfer one of the parties to another location without notice. For purposes of this section, your immediate family includes your spouse, children, siblings, parents, grandparents, and your spouse's children, siblings, parents, and grandparents.

Employees who marry or engage in a serious relationship while employed are treated in accordance with the above guidelines. If Shoe City believes that a conflict of interest exists, Shoe City will take appropriate action to resolve the matter in a fair and equitable manner as possible.

Socializing

There is no congregating in the stock room or behind the wrap counter. If you do not have a customer or a job to do, you must remain on the sales floor and see your manager.

No loitering by off duty sales associates or friends and relatives will be tolerated at any time. If you are meeting someone when you are scheduled to leave, do so outside the store.

Personal Items

Personal items will be kept in a location designated by management. However, Shoe City is not responsible for any items that are lost, stolen, or damaged.

If you resign or otherwise terminate employment, you must remove your belongings. Any items remaining on the premises after your final paycheck is issued will be removed and disposed of by Shoe City.

Inspection Of Packages

Shoe City reserves the right to check and inspect any and all packages, purses, or other personal belongings at any time without notice. Concealment of merchandise is grounds for immediate dismissal and criminal prosecution.

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Standard Of Conduct

Whenever people gather together to achieve goals, some rules of conduct are needed to help everyone work together efficiently, effectively, and harmoniously. The purpose of these rules of behavior and conduct is not to restrict your rights, but rather to be certain that you understand what conduct is expected and necessary.

When each person is aware that he or she can fully depend upon fellow workers to follow the rules of conduct, then our organization will be a better place to work for everyone.

By accepting employment with us, you have a responsibility to Shoe City and to your fellow employees to abide by the rules and policies in this handbook. Failure to do so will lead to appropriate disciplinary action. A written record of all violations is maintained in each individual's personnel file.

Corrective Action and Procedures

There are two types of corrective reviews issued by management for policy or substandard performance:

VERbAL: This will be conducted by management and will inform you of a problem and the steps needed to correct the same. All verbal reviews will be logged by management and be made a part of your permanent personnel file.

WRITTEN: The written corrective review is used for more serious or reoccurring problems or situations. It will outline the offense and the steps that are needed to correct the situation and a time period for expected improvement. Three written corrective reviews for the same or different offenses may result in termination. They will become a part of your permanent personnel file.

Shoe City has no obligation to use these forms of discipline prior to discharging an employee, and any such discipline administered does not change your status as an at-will employee.

Suspension

It may be deemed necessary by management to suspend an employee for a period of time due to a problem or violation of company rules or policies. Should this occur, the suspension will begin at the Human Resource Department and Management's discretion.

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Inventory Control

As in any successful business, inventory control is a vital element in the day to day operation. Inventory control is the responsibility of every Shoe City employee. This includes but not limited to personal honesty, protecting merchandise from shoplifters, reporting security violations of any description to management or Loss Prevention. Security violations include the suspicionor knowledge of any type of employment theft.

Any employee possessing knowledge of theft of any type and failing to report it to managementor Loss Prevention will be subject to immediate termination of their employment with Shoe City. In addition, if your store has an inventory resulting in losses that exceed Shoe City standards,all employees working in the store may be subject to immediate termination of their employment with Shoe City.

Shoe City Theft hot Line

You are encouraged to report employee dishonesty of any type by calling the Shoe City Theft HotLine. All calls to this line will be responded to immediately and you will remain anonymous unlessyou indicate otherwise. The number to call is (410)944-1666, extension 226 or (301)621-4239, extension 226 (Metropolitan and DC only)

honesty Rewards

Shoe City respects and rewards honesty. We will pay you up to $500 for reporting employee dishonesty to management or Loss Prevention. The information you provide will be treated carefully and held in the strictest confidence. You may also be saving your job and the job of the other honest Shoe City employees.

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Grounds for Immediate Dismissal

Generally speaking, we expect each person to act in a mature and responsible way at all times. However, to avoid any possible confusion, some of the more obvious unacceptable activities are noted below. Your avoidance of these activities will be to your benefit as well as the benefit of Shoe City. If you have any questions concerning any rule, or any of the unacceptable activities listed, please see your manager for an explanation.

Occurrences of any of the following violations, because of their seriousness, may result in immediate dismissal without warning. This list is not all-inclusive.

1. Unauthorized borrowing from petty cash.

2. Bouncing personal checks in the store.

3. Giving, offering, or authorizing discounts other than listed in the handbook.

4. Abuse of discounts in any manner.

5. Negligence or any careless action which endangers the life or safety of another person.

6. Being intoxicated or under the influence of controlled substance drugs while at work.

7. Use or possession or sale of controlled substance drugs in any quantity while on company premises except medications prescribed by a physician which do not impair work performance.

8. Possession of firearms, weapons or explosives on company property.

9. Engaging in criminal conduct, acts of violence, or making threats of violence toward anyone on company premises, fighting, or horseplay or provoking a fight on company property, or negligent damage of property.

10. Insubordination or refusing to obey instructions properly issued by your manager pertaining to your work and/or refusal to help out on a special assignment.

11. Threatening, intimidating, or coercing fellow employees on or off the premises - at any time, for any purpose. Verbal or physical violence toward supervisors, co-workers, or customers.

12. Harassment of any type including, but not limited to, sexual harassment.

13. Engaging in an act of sabotage, willfully or with gross negligence causing the destruction or damage of company property, or the property of fellow employees, or customers, in any manner.

14. Leaving during your work hours without the permission of your manager.

15. Sleeping on the job, loitering or loafing during working hours. 16. Smoking on company premises.

17. Creating or contributing to unsanitary conditions.

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18. Theft or dishonesty of any kind. Including but not limited to:- Unauthorized removal of company merchandise from store or warehouse. - Theft of the property of fellow employees.- Unauthorized possession or removal of any company property, including documents, from the

premises without prior permission from management. - Concealment of merchandise or company funds.- Giving unauthorized refunds or discounts.- Willful falsification or misrepresentation on your application for employment.- Misuse of company funds.- Falsification of time cards or any other company document or record.

19. Accepting money, gifts, or other compensation from customers or competitors.

20. Disclosure of sales figures or other confidential Shoe City information to anyone other than au-thorized Shoe City employees.

21. Working for a competing business while a Shoe City employee.

22. Engaging in behavior designed to-create discord and lack of harmony, interfering with another employee on the job, willfully restricting work output or encouraging others to do the same.

23. Insubordination or refusal to follow instructions from management.

24. Immoral conduct or indecency on company property. 25. Conducting a lottery or gambling on company premises.

26. Any act of harassment, sexual, racial or other, telling sexist or racial-type jokes, making racial or ethnic slurs.

27. Failure to report an absence or late arrival, excessive absence or lateness.

28. Obscene or abusive language toward any manager, employee or customer, indifference or rudeness towards a customer or fellow employee and/or any disorderly/antagonistic conduct on company premises.

29. Failure to immediately report damage to, or an accident involving company equipment.

30. Failure to maintain personal grooming and dress, a neat and clean appearance in terms of the standards established, or any departure from accepted Shoe City Dress Code.

31. Eating food and beverages in undesignated areas.

32. Failure to enter your time in/out on the computer or on time cards. Alteration of your own time card or time in/out. Punching or altering another employee's time card or time in/out records, or causing someone to alter your time card or records.

33. Unreported knowledge or concealment of any of the above.

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Wage and Salary Policies

Payday

You will be paid by direct deposit or a Visa debit card on a biweekly basis, with direct deposit funds being issued on Friday. Payroll is processed on a biweekly basis. The two week period begins on Sunday and ends on the second Saturday.

Deductions From Paycheck

Shoe City is required by law to make certain deductions from your paycheck each time one is prepared. Among these are your federal, state and local income taxes and your contribution to Social Security and Medicare as required by law. These deductions will be itemized on your check stub. The amount of the deductions may depend on your earnings and the information you furnished on your W-4 form regarding the number of dependents/exemptions you claim.

Any change in name, address, telephone number, marital status or number of exemptions must be reported to the office immediately, to ensure proper credit for tax purposes. The W-2 form you receive for each year indicates precisely how much of your earnings were deducted for these purposes. Any other mandatory deductions to be made from your paycheck, such court-ordered attachments, will be explained whenever Shoe City is ordered to make such deductions. Some states may require other payroll deductions.

Wage Garnishments

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

Excessive garnishments may be cause for dismissal in accordance with applicable law.

Direct Deposit

You will be paid by direct deposit. We will not, under any circumstances, give anyone pay at the office.

Your direct deposit can be issued to your checking account, credit union, savings account and or Visa debit card.

You can have no more than 3 different accounts on your direct deposit. Your Manager or the Human Resources Department will provide you with the necessary forms.

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Errors In Pay

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

Overtime

Overtime may become necessary during busy seasonal times or in response to extenuating circumstances such as unanticipated business or when an illness or emergency keeps co-workers from being at work as scheduled. When it is necessary to work overtime, you are expected to cooperate as a condition of your employment.

All overtime must be approved in advance by your manager. All hourly employees who work overtime will be paid at a rate of time and one-half for any physical hours worked in excess of forty hours per week.

Uncontrollable Business Interruptions

Unfortunately, you will not be paid when work is not available due to circumstances not within Shoe City's control, the following are examples of such circumstances:

- Operations cannot commence or continue due to threats to employees or property or when recom-mended by civil authorities.

- Public utilities fail to supply electricity, water, or gas, or there is a failure in the public utilities, or sewer system.

- The interruption of work is caused by an "Act of God" (inclement weather, fire, flood, earthquake, etc.) or some other cause not within Shoe City's control.

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Company Benefits

Discounts

All employees are entitled to a 30% discount for their own personal use or that of their immediate family, (mother, father, sister, brother, spouse and children), and not for resale or use by others.

All discounts are for personal use only.

All discount purchases will be handled by management and must be authorized by your manager or as-sistant manager.

Under no circumstances is any associate or manager to handle their own discount transaction, and you must have a sales receipt for all purchased merchandise before leaving the premises.

Times for employee purchases will be designated by management, but never when a customer is making a purchase.

Discounts may not be used in conjunction with any other promotion or discount offer.

Employees and their immediate family are not eligible for the Shoe City Honor Roll program. Immediate family as defined in paragraph one of the discount policy.

Discounts are a privilege offered for the use of employees and the members of their immediate family. Buying items on the behalf of individuals other than yourself or immediate family members is strictly prohibited. When faced with the temptation or pressure from others to use your discount for anyone other than the individuals outlined in this policy, please decide against it. Shoe City considers this behavior a form of theft and is grounds for your immediate dismissal.

We welcome and encourage employee purchases in our stores but reserve the right to revoke this privilege if misused or abused. If you go over your allotted amount it will result in a loss of your discount privilege for 30 days or longer.

If you have any questions concerning the Shoe City discount program, check with your immediate Super-visor or District Manager.

Special Purchases

Occasionally we will offer certain items to employees at a special purchase price. These items will be for the employee only and may not be purchased for family members. As in our regular discount policy, misuse or abuse will result in loss of your ability to participate in this program.

Eligibility

The following benefits are offered to all full-time employees of Shoe City. In order to be considered full-time, employees must work at least 32 hours per week on a regularly scheduled basis.

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Vacations

All full time employees are entitled to a paid vacation after one year of continuous service. Vacation time taken this year is earned from the previous year. The number of weeks you are entitled to is determined by the length of service: After the first year of service, you are entitled to two weeks vacation. After the 10th year, you are entitled to three weeks vacation.

Vacation time must be approved by your Store Manager or Supervisor. You must request your vacation time at least one month in advance. We will make every effort to accommodate your requested time, but you must realize that this is not always possible. Vacation will not be allowed during holiday weeks.

In addition, if you choose to take your vacation a few days at a time, you may take one Saturday for each week of vacation due.

Every effort will be made to grant you your vacation at the time you desire. However, vacations cannot interfere with Shoe City's operation and therefore must be approved by your manager at least one (1) month in advance. If any conflicts arise in requests for vacation time, preference will be given to the employee who requested the specific dates first. It is therefore suggested that you advise us of your vacation schedule during the first quarter.

You may not receive advance vacation pay and vacation time must be used or the employee will lose within the full calendar year.

A vacation year begins on January 1st and ends on December 31st. Vacation time may not be carried over and accumulated in subsequent calendar years.

Please note that on personal and vacation days any associate hired after June 30th and has been employed for one year would only be entitled to half of these days until January 1st.

Personal DaysEmployees that are entitled to receive personal days after their 120 days of employment within the following groups:

Class1 - Retail (Store Level) & Class 2 - Distribution Center (Warehouse)Exempt Employees 6 Personal DaysDepartment Managers 3 Personal Days

Class 3 - Corporate OfficesExempt Employees 6 Personal DaysNon-exempt 4 Personal Days

Personal days are to be used as such for personal time off, along with sick days, child care and or jury duty. All employees must use this time or lose it. It can not be carried over or cashed out.

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Holidays

Only full-time employees are eligible for holiday pay.

You are not eligible to receive holiday pay during your probationary period, nor are you eligible to receive holiday pay if you are a part time employee.

You may take time off to observe your religious holidays. If available, a full day of unused vacation or personal day may be used for this purpose, otherwise the time off is without pay. You must notify your manager at least ten business days in advance.

If a holiday occurs during your scheduled vacation, you are permitted to take an extra day of vacation.

In most stores, we are closed on the following days:

Easter Sunday Thanksgiving Christmas Day We are normally open on the following holidays: Memorial Day Independence Day Labor Day New Year's Day

Full time employees working 32 hours and have 120 days of service receive six paid holidays per year:

New Year’s Day Labor Day Memorial Day Thanksgiving Independence Day Christmas Day

To qualify for holiday pay, you must work your scheduled day before and the scheduled day after the holi-day. Only excused absences will be considered exceptions to this policy.

In the event that a holiday falls on a Sunday, you will qualify for holiday pay only if the store is normally open on Sundays, and you are normally scheduled to work on Sunday. In the event that a holiday falls on a Monday through Saturday and you do work, you will receive compensation in pay or an additional day off at management’s discretion.

Jury Duty

It is your civic duty as a citizen to report for jury duty whenever called. If you are called for jury duty, we will permit you to take the necessary time off without pay .

You must notify your manager within forty-eight (48) hours of receipt of the jury summons.

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Health, Dental, and Optical Care Insurance

After 120 days of continuous active work, all full time employees working 32 hours or more will have the opportunity to enroll in our health plan. Shoe City pays a portion of the premium cost for this health insurance, and dependent coverage is available at group rates.

Your manager or the Human Resources Department will provide you with information on our current car-rier plus forms for enrollment, as well as information concerning benefits and premiums.

Life Insurance

After 120 days of continuous active work, Shoe City provides all full time employees with a life insur-ance policy at no cost to the employee with a scheduled benefit of $10,000 to be paid to your designated beneficiary.

If you cease active work for any reason, your life insurance will normally terminate. However, if you cease active work because you are disabled, you might qualify to continue your life insurance. This is called Coverage During Disability. Please contact the Human Resources Department for further information.

Other Insurance

Shoe City provides additional resources for Life and Disability insurance with other carriers. Please contact the Human Resources Department for further information. Please be advised that this is 100% employee paid.

125-Flex Plan

125-Flex is a program approved by Congress to allow employees to set aside a portion of their salaries before taxes to spend on insurance premiums for medical and dependent coverage. Employees can pay for their insurance premiums out of their gross salary rather than net salary. By doing this, employees lower their tax liability and increase their take-home pay. Please contact the Human Resources Department for further information.

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Shoe City 401(K) Plan

Sooner or later, you're going to need savings to supplement your retirement income. Achieving financial security for your future is not just a matter of how much you earn, but more importantly, it is how much you save.

By saving regularly through the 401(k) savings plan, even if only a few dollars each payday, you can ac-cumulate more money in a few years than you'd think possible. It is one of the surest ways to give yourself a head start on developing financial security.

Shoe City wants to help you meet your financial goals with this Plan. Your savings grow faster with tax-deferred dollars, Company contributions (if any), and investment opportunities. Set your goals high and join the Plan.

An eligible employee becomes a participant of the Plan on or after reaching age 21 and completing one Year of Eligibility Service. A Year of Eligibility Service is accomplished after completing 1,000 hours of service during the first twelve months of employment. If 1,000 hours of service is not completed in the first twelve months of employment, you may complete 1,000 hours of service in any calendar year.

Participation is entirely voluntary. You may enroll in any month once you become eligible. To enroll, you must complete an Enrollment Form and return it to the office by the date established by the Plan Administrator. Your contributions will then begin in the first payroll cycle of the following month.

The Human Resources Department will forward enrollment forms upon eligibility.

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COBRA Continuation Of Coverage

In the event you or one of your covered dependents loses healthcare coverage under this plan, you and/or your dependents must be afforded the opportunity to elect to continue coverage. A federal law enacted in 1985, COBRA, requires Shoe City to extend to you (and/or any affected dependents) the option to continue your lost coverage for a minimum of 18 months. You must notify Shoe City of your intent to continue coverage within 60 days of the date of which you were provided with the continuation information. You then have 45 days to make the first payment, which consists of paying 102% of the full premium for the coverage you wish to continue.

Continuation of group coverage commences as of the date of the qualifying event (e.g., the date an em-ployee is terminated, the date an employee dies, the date on which an employee becomes divorced). The period of COBRA continuation of group coverage varies, based on the type of qualifying event:

- 18 months if loss of coverage is due to termination of employment or reduction in hours.

- 29 months for a qualified beneficiary who is determined under Title II (OASDI) or Title XVI (SSI) of the Social Security Act to have been disabled as of the termination or reduction in hours.

- 36 months if loss of coverage is due to any other qualifying event (e.g.: death, divorce or legal separation, children reaching limiting age).

Generally continuation coverage will remain in force until the earlier of:

- The date you fail to submit payments on a timely basis.

- The expiration of your continuation period.

- The date you notify us of your intent to terminate your continuation coverage.

For additional information about the specifics of COBRA coverage, your COBRA rights and COBRA costs, please contact the Human Resources Department.

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Family Medical Leave of Absence

Federal law requires that eligible employees are entitled to take up to 12 weeks of unpaid, job–protected leave each year for specified family and medical reasons and the continuation of insurance benefits in accordance with the provisions of the Federal Family and Medical Leave Act (FMLA).

A Leave of Absence is defined as an excused leave from the job for a period of more than 12 consecutive calendar days. Leaves of Absence must be requested through your immediate supervisor and District Sales Manager and final approval from the Human Resources Department must be obtained before the leave begins.

To be eligible for the FMLA benefits, an employee must have worked for the employer for 12 months and have worked at least 1,250 hours over the prior 12 months.

A family and/or medical leave of absence shall be defined as an approved absence available to eligible employees for up to 12 weeks of unpaid leave per year under particular circumstances that are critical to the life of a family. Leave may be taken upon the birth of an employee's child; upon the placement of a child with the employee for adoption or foster care, when the employee is needed to care for a child, spouse, or parent who has a serious health condition, or when the employee is unable to perform the essential func-tions of his or her position because of a serious health condition.

Basic Requirements for Medical Certification of Need for Leave:

1) The company will require medical certification to support a claim for leave of an employee's own serious health condition or to care for a seriously ill child, spouse, or parent. For the employee's own medical leave, the certification must include a statement that the employee is unable to perform the essential function of his or her position and other information the company may require. For leave to care for a seriously ill child, spouse, or parent, the certification must include a description of the reason(s) why the employee's assistance is needed, the care the employee will provide, and an estimate of time the employee will need to provide care. In its discretion, the company may require a second medical opinion at its own expense. If the first and second opinions differ, the company, at its own expense, may require the binding opinion of a third health care provider, approved jointly by the company and the employee.

2) If medically necessary for a serious health condition of the employee or his or her spouse, child, or parent, leave may be taken on an intermittent or reduced leave schedule. If leave is requested on this basis, however, the company may require the employee to transfer temporarily to an alternative position which better accommodates recurring periods of absence or part–time schedule, provided that the position has equivalent pay and benefits.

3) The company may require the employee to periodically recertify the ongoing medical need for leave.

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Notification and Reporting Requirements:

When the need for leave is foreseeable, such as the birth or adoption of a child, or planned medical treat-ment, the employee must provide reasonable prior notice and make efforts to schedule leave for medical reasons so as not to unduly disrupt company operations (subject to approval of health care provider). In cases of illness, the employee will be required to report monthly on his or her leave status and intention to return to work.

Status of Employee Benefits During Family or Medical Leave of Absence:

1. Any employee who is granted an approved leave of absence under this policy is advised to provide for the retention of his or her group health insurance coverage by arranging to pay the premium contributions during the period of unpaid absence. Further, information regarding the requirements to maintain group health insurance may be obtained from the Human Resources Department.

2. In the event that an employee elects not to return to work upon completion of an approved leave of absence, the company may recover from the employee the cost of any payments made to maintain the employee health coverage. Benefits entitlement based upon length of service will be calculated as of the last paid work day prior to the start of the unpaid leave of absence.

Procedures and Forms to be Completed:

1. A request for Family and Medical Leave of Absence form must be originated in duplicate by the em-ployee. This form should be completed in detail, signed by the employee, and submitted for review and approval. The form shall be submitted thirty (30) days in advance of the effective date of the leave unless the need for the leave or the exact commencement date of the leave is unforeseeable.

2. All requests for family and medical leaves of absence due to illness must also include a completed Medical Certification form. The Medical Certification Form must be completed by a qualified health care provider. If the leave is needed for a seriously ill spouse, child, or parent, an estimate of the time period during which the care will be provided, and a schedule for leave if it is to be taken intermit-tently or on a reduced schedule.

3. In calculating the total amount of family and medical leave that an employee is entitled to take, or has taken, all such leave shall be counted for the past 12 month period. In other words, we use a "rolling" 12-month period measured backward from the day that you use any FMLA leave.

4. Any employee who provides false information with respect to family leave shall be subject to disci-plinary action up to and including termination.

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Return from Leave of Absence, or Change in Intermittent or Reduced Leave Schedule:

An employee shall provide reasonable advance notice of return from leave of absence (if the employee intends to return to work on a different date as previously indicated), or of any change in the employee's intermittent or reduced leave schedule, the company will require fitness for duty certification from the health care provider(s) in any situation where there may be reason to question the employee's ability to return to his or her former work or work schedule based on either the nature of the illness or the duration of the absence. Upon return from leave, an employee shall be entitled to return to the same job or an equivalent job.

Additional Items Included in the Family and Medical Leave Act:

1. A salaried employee who is an exempt employee under the Fair Labor Standards Act may have his or her salary reduced for those hours of Family and Medical Leave Act (FMLA) leave that is taken on an intermittent or reduced leave schedule.

2. An employee may or may not elect to exhaust vacation pay before starting FMLA leave. This time will be counted as FMLA leave.

3. Employees will be immediately reinstated in benefit plans upon return from FMLA leave.

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Separation

Notice

Although we hope that no one will want to resign their employment with us, please do us the courtesy of giving us at least two weeks advance notice if you intend to do so.

Separation and Vacation

The failure to give us sufficient notice will result in the loss of any vacation pay that you were eligible to receive. Moreover, any disciplinary termination will result in possible forfeiture of any vacation pay.

Final Paycheck

Before your final paycheck can be released, you must contact the Human Resources Department for an exit interview. All Shoe City property, including keys, uniforms, identification badges, etc., must be returned to the Human Resources Department.

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Statement On Employment

This Employee Handbook includes general rules of conduct, safety regulations, and discipline rules.

You are employed with Shoe City at will, and nothing in this handbook should be construed as creating any type of employment contract either expressed or implied, and nothing in this handbook is intended to promise or guarantee your employment for any specific period of time. This disclaimer negates any contractual liability created by the existence of this handbook.

The provisions outlined in this handbook supersede all previously established policies, procedures, written or unwritten practices, and/or oral representations.

The policies in this handbook are to be considered as guidelines. Nothing in this handbook is intended to restrict Shoe City's right to add, delete, amend, or revise any portion of this handbook without advance notice. No statement or promise by a supervisor, manager, or department head may be interpreted as change in policy nor will it constitute an agreement with an employee.

This handbook does not constitute a guarantee that your employment will continue for any specified period of time or end only under certain conditions. Nothing in the handbook constitutes an express or implied contract of employment or warranty of any benefits. Employment at Shoe City is a voluntary employment-at-will relationship for no definite period of time.

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

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Notes

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__________ ______________________________ Store Employee

I acknowledge that I have received and reviewed a copy of Shoe City's Employee Handbook and under-stand my responsibility to familiarize myself with its provisions, and I agree with the rules, regulations, and procedures set forth in this Handbook.

I have been given the opportunity to ask questions, and they have been answered to my satisfaction.

I also understand that my employment is not for any definite period of time, and that nothing in this Hand-book in any way creates an express or implied contract of employment or warranty of any benefits.

I further understand that this Handbook is only a brief summary of benefits currently offered by Shoe City and an overview of some of its work policies and rules.

I further understand that any and all of the rules, policies, wages and benefits referred to in this Handbook may be unilaterally amended, modified, reduced or discontinued at any time by Shoe City, in its judgment and discretion. I also agree that either Shoe City or I can terminate my employment-at-will at any time, with or without cause or notice.

____________ ______________________________ Date Signature

____________ ______________________________ Store Manager

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