Severance Policy

Purpose

To provide a benefit to eligible employees affected by a Reduction-In-Force (RIF), facility closing, relocation of an employees place of work (over 50 miles) or job elimination.

Scope

This policy applies to all active, regular employees at all US Company locations.

Policy

Basic Serverance will be paid in installments through the normal payroll cycles and is calculated as follows:

A. Two (2) weeks base salary if annualized base salary is less that $75,000.

B. Four (4) weeks base salary if annualized base salary is equal to or greater than $75,000

Supplemental Severance Limits in addition to Basic Severance, affected employees may be entitles to Supplemental Severance payments and services if they sign and do not revoke a release of claims form.

Eligibility

Severance benefits are determined by an employees current employment status. Part-time employees severance pay will be based on their regularly scheduled weekly hours of work.

Exclusions

Employees in the following categories are not eligible for severance payments:

• Retirees

• Employees who voluntarily resign

• Employees affected by a change in control of the company that does not cause a break in service.

• Employees terminated for cause or unsatisfactory work performance.

• Employees covered by collective bargaining.

• Temporary employees

• Employees who refuse a transfer or offer of work of similar scope and pay, unless the offer would require an increased commute of fifty miles or more.

Severance Pay

Severance pay includes base salary only and does not include bonuses, overtime or premium pay, commissions, allowances, pay differentials or any other type of consideration.

Service Years

Years of service using the adjusted service date are determined by rounding up to the full next year of service from the actual termination date.