Fill and Sign the Pay Lieu Notice Form

Pay in Lieu of Notice Guidelines The following Company guidelines for Pay in Lieu of Notice are effective ______ , 20       . The guidelines affect regular, full-time salaried employees and all regular, full- time corporate office employees who are permanently separated at the request of the Company and who are not offered another position or a transfer to an affiliated or acquiring company. Employees who voluntarily resign, who are subject to recall, who are on any leave, or who are terminated due to circumstances beyond the control of the Company are not eligible. Upon approval of the President of the Company, Pay in Lieu of Notice may be increased to compensate for individual situations, or may not be paid in cases involving integrity issues. For employees who are separated due to the permanent elimination of a position a minimum of two weeks will be paid regardless of length of service. For all others, the following schedule applies. Continuous Service Minimum Weeks' Pay in Lieu of Notice Less than six months None Six months to five years One week per year Six months to ten years One-and-one-half weeks per year for years six through ten plus one week for each year one through five Eleven or more years Two weeks per year for each year over ten plus one-and-one-half weeks per year for each six through ten and one week for each year from years one through five Note: Managers and above are generally eligible for a minimum of four weeks. VPs and Officers are generally eligible for a minimum of three months. Maximum: ________ weeks. The maximum amount of the week's salary used to calculate Pay in Lieu of Notice is $ ________ per week. Any pay in Lieu of Notice will be reduced by any amount paid pursuant to any applicable law, including but not limited to any plant closing law. The Pay in Lieu of Notice shall be reduced by any amounts owed by the employee to the Company or any amounts earned by the employee after termination of employment under individual employment and/or consulting agreements between the employee and the Company. Pay in Lieu of Notice will be paid at the normal salary rate through the term of the Notice. Bonus, overtime, incentives, car allowances, and similar earnings will not be included in the normal salary rate. There will be no lump sum distributions. The employee may be asked to make certain agreements in order to receive any amount over two weeks of pay (e.g., non-competition and a release in a form satisfactory to the Company). As an alternative to pay in lieu of notice, the Company may elect to offer retraining to an employee whose job is being eliminated. The employee offered such retraining has the option to select the retraining or the Pay in Lieu of Notice but not both. During the retraining, the employee may not be paid or may be paid a reduced salary. If the employee is not offered a position after the successful completion of the retraining or if the employee does not successfully complete the retraining, the Company has no further obligation to the employee, the employee will receive no Pay in Lieu of Notice, and his or her employment will be terminated. The employee may be required to make certain agreements in order to receive the retraining (e.g., confidentiality, non-competition, and a release in a form satisfactory to the Company). Outplacement services may be offered upon approval of the President of the Company. As an alternative to Pay in Lieu of Notice, the Company may offer the employee whose job is being eliminated the opportunity to apply for any open position for which the employee is qualified. An employee offered such an opportunity has the option to apply for such open positions or take the Pay in Lieu of Notice, but not both. If the employee is not offered a position, the Company has no further obligation to the employee, the employee will receive no Pay in Lieu of Notice and his or her employment will be terminated. The employee may be required to make certain agreements in order to receive the opportunity to apply for other positions (e.g., confidentiality, non-competition, and a release in a form satisfactory to the Company). If enrolled at the time of the notice, the employee may choose to drop coverage of Group Health, Life, and AD&D Insurance. If the employee wishes, coverage may continue during the Pay in Lieu of Notice period pursuant to the federal law known as COBRA. Premiums would be deducted as usual from each paycheck. Thereafter, the employee will be responsible for the full premium under COBRA. Employees on a leave pursuant to the Family and Medical Leave Act will be treated in accordance with that law. Accrued but unused vacation and any other amounts owed to the employee (except bonuses) will be included with the last Pay in Lieu of Notice check in accordance with the Company's vacation policy. Any bonus or other incentive pay will be paid in accordance with the applicable plan. Again, these are guidelines to be applied to all Company-originated separations affecting employees as described. As with all others, these guidelines do not create a contract for employment or any benefit. Further, they are subject to modification and interpretation at any time.