FBC Knoxville Employee Handbook

Flowers Baking Company of Knoxville, LLC

3100 NW Park Drive

Knoxville, TN 37921

PTO & Attendance Policy

HOURLY EMPLOYEE PAID TIME OFF AND ATTENDANCE POLICY

Effective January 1, 2020, the Company is transitioning from a traditional vacation plan to a Paid Time Off (PTO) plan. Along with this transition, the Company is making a change to an existing benefit as well as providing you with additional benefits. Below is a discussion of this change and the increased benefits.

NEW BENEFITS

The two new benefits discussed below are paid, and must be used, in 8-hour increments only, regardless of your assigned schedule. Payment for these benefits does not count toward hours worked for purposes of calculating overtime.

ADDITIONAL PERSONAL HOLIDAY

The Company will begin providing two (2) paid personal holidays. Personal holidays must be used within the benefit year in which they are granted. New employees will receive two personal holidays when they become benefit-eligible and those personal holiday hours must be used by December 31 of the calendar year in which the hours were granted.

Employees who have been with the company for more than 12 months, receive their personal holiday hours in January of each year. Those hours must be used by December 31 of each calendar year.

If you do not use your personal holidays, they will be replaced in January of the following year.

Unused personal holiday hours are not paid out if you terminate employment with the company.

PARENTAL LEAVE

The company offers five (10) days of paid parental leave to all benefit-eligible employees for the birth, adoption, or fostering of a child. Absences for parental leave do not require the use of PTO and are excluded from the points system.

This benefit is provided on an individual basis, so if both parents work for the company, each parent is entitled to parental leave.

Parental leave may be taken in single day increments but must be used within six (6) months of the birth or placement of the child for adoption or foster. Parental leave benefits may not be requested more than twice in a calendar year.

If the employee is FMLA- eligible, the use of parental leave will also count toward the employee’s annual FMLA entitlement.

If an employee is not FMLA-eligible or has exhausted FMLA, he or she is still eligible for the parental leave benefit.

Although not a requirement, it is suggested that if the birth-parent is our employee, she use parental leave as the STD waiting period. Parental leave may also be used as the STD waiting period if an employee is placed out of work during a pregnancy (but will not be available after the birth even if the birth event is during a different calendar year).

Proper documentation must be presented to claim this benefit (e.g., a birth certificate, an adoption certificate, or a letter from the foster care agency).

This benefit is effective 1/1/2020; however, employees who experienced a birth or placement of a child for adoption/foster in October – December 2019, are grandfathered into this benefit. They will have 6 months from the date of the event to use this benefit.

Example: If your child was born 10/15/2019, you must pre-schedule and use your parental leave by 4/14/2020.

PAID TIME OFF (PTO)

Effective January 1, 2020, the Company is transitioning from a traditional vacation plan to a Paid Time Off (PTO) plan. This means that you will have more flexibility to attend to personal and family needs. It also means that every absence (except for absences under company benefits not requiring use of PTO such as personal holidays or jury duty) will be subtracted from your available PTO bank. Therefore, you will need to take a more active role in monitoring your available paid time off.

NEW ACCRUAL RATES

You will accrue PTO hours every week. Your available PTO hours will be printed on your pay stub each week.

New employees accrue from their first day of employment and are eligible to use accrued PTO as soon as they become eligible for other benefits (generally, after 30 days of employment). Below is your new weekly accrual schedule and allowable time away from work based on years of service.

Years of Service

Annual Days

Annual Hours

Weekly Accrual Rate

Scheduling Guidelines

- One PTO Week - Up to 5 FLEX-Days - 2 individual pre-scheduled days - One PTO Week - Up to 5 FLEX-Days - One 3-day block of PTO - 2 individual pre-scheduled days - Two PTO Weeks - Up to 5 FLEX-Days - 3 individual pre-scheduled days - Two PTO Weeks - Up to 5 FLEX-Days - 5 individual pre-scheduled days

0 - 2

12

96

1.846154

3 - 4

15

120

2.307692

5 - 9

18

144

2.769231

10 - 14

20

160

3.076923

- Two PTO Weeks - Up to 5 FLEX-Days - 8 individual pre-scheduled days OR - 3rd 5-day PTO week and 3 prescheduled days

15+

23

184

3.538462

PTO Accrual Maximum

Beginning in 2020, your maximum accrual is 1x your annual accrual rate. Once you have accrued the number of hours for your length of service (referenced in the chart above), your accrual will stop until you take enough PTO to restart your accrual.

PTO USE

The use of PTO is NOT required for the company’s paid holidays, paid personal holidays, parental, jury duty, or bereavement leaves. These benefits are separate from the PTO policy; however, acceptable documentation may be required to receive pay under these benefits. PTO is also not required but may be requested for USERRA-conforming military leaves. The use of PTO is required for any other time away from work such as time for rest and relaxation, absences to attend school meetings or personal or f amily doctor’s appointments, or absences to care for your own or your family members’ illness or injury. The use of PTO is also required for absences during any benefit waiting period such as short-term disability and absences relating to FMLA, whether intermittent or continuous.

There are 2 ways to use your PTO:

1) Scheduled PTO (Some 3-Day or 5-Day Blocks of Time are required, depending on years of service). 2) Unscheduled PTO (FLEX-Days)

Both ways are discussed in the following pages.

Scheduled PTO . If scheduled, PTO can be used in blocks of time or in individual days according to your accrual allotment. Scheduled work weeks that consist of 5 days, you may elect 8, 10, or 12 hours of PTO per day. Scheduled work weeks of 4 days, you may elect 10 or 12 hours of PTO per day. Unscheduled PTO. Each employee will be allowed to use up to 40 hours of his or her annual PTO accrual as unscheduled PTO (FLEX-Days). Scheduled work weeks that consist of 5 days, you may elect 8, 10, or 12 hours of PTO per day. Scheduled work weeks of 4 days, you may elect 10 or 12 hours of PTO per day. EIGHT HOURS of this 40 hours can be taken in 4-hour increments.

No employee will be allowed to use more PTO hours than they have available in their PTO bank.

Any accrued, unused PTO time will be paid out to you at termination.

PTO MEANS MORE FLEXIBILITY TO YOU

Our desire is to provide you the flexibility you need and want while curbing unplanned/unscheduled absences.

Time away from work is no longer considered as “excused” or “unexcused;” instead, time away from work is viewed as “scheduled” or “unscheduled.”

Under this PTO policy and our revised attendance policy, communication is a key component of making this increased flexibility work for you and for the company. Generally, time away from work will be considered as scheduled if your request for PTO is put in writing and approved by management at least 17 days prior to needing the time.

Existing rules about the number of people per shift/line who can be away from the bakery at one time will still apply and you are expected to comply with them.

Q. How is this attendance policy different from what I currently have?

A. Currently, you are assigned points for any absence that is not “excused.” Going forward, you will have a bank of Paid Time Off that you will be responsible for managing to better meet your needs. As long as you meet the notice and/or call-in procedures and do not exceed your allotment for either scheduled or unscheduled PTO, you will have paid time away from work with no penalty.

The key to this PTO policy is that YOU have to responsibly manage your time away from work.

Q. Can I bring a doctor’s excuse to excuse me when I am out sick?

A. No, a doctor’s note does not excuse your being out sick. There is no need to excuse an absence if you are properly managing your unscheduled PTO. You are allowed 40 hours of your annual accrual to use on an unscheduled or emergency basis (see the discussion on FLEX-Days in the next section).

Q. If I have PTO, why do I have an attendance policy?

A. You are subject to the attendance policy under the following circumstances: 1) failing to meet the Company’s call -in requirements; 2) exceeding the number of hours you can be away from work on an unscheduled basis; and/or 3) exceeding your accrued PTO.

Good attendance is a requirement of continued employment and employees are expected to manage their attendance record accordingly. Your available PTO is shown on your pay stub each week.

FLEX-DAYS

The Company is instituting FLEX-Days as a way of recognizing that you have lives outside of work. We need you to work when you are scheduled to work; however, we do realize that things sometimes happen beyond your control. We want to ensure that as long as you meet certain guidelines, you will not be penalized for those absences.

Remember “excused/unexcused” is a thing of the past. “Scheduled/unscheduled” is the way that your new PTO plan and attendance policy are managed.

You will be allowed to use 40 hours of your annual PTO accrual as FLEX-Days that you can use as unscheduled paid time off. EIGHT HOURS of this 40 hours can be used in 4-hour increments.

When you use a FLEX-Day, depending on your regularly scheduled work week, you may elect to receive 8, 10, or 12 hours of PTO for your unscheduled absence. Scheduled work weeks that consist of 5 days, you may elect 8, 10, or 12 hours of PTO per day. Scheduled work weeks of 4 days, you may elect 10 or 12 hours of PTO per day. As longs as you have unscheduled PTO available and you follow proper call-in procedures which is calling in two hours before the start of your shift, you will receive no points for the absence. If you use a FLEX-Day, upon your return to work, you are responsible for completing a PTO Request Form, recording the date (or hours if using as a ½ day) that you were absent, selecting the number of hours that you are requesting (4 – twice per year if time is available, 8, 10, or 12) and reporting that time as a FLEX-Day. You will receive a copy of this form, your supervisor will keep a copy, and HR will retain a copy in your personnel file.

NOTE: If you elect to use a FLEX-Day in 12 hour increments, you will only have 3-1/2 FLEX-Days per year. If you elect to use a FLEX-Day in 10-hour increments, you will only have 4 FLEX-Days per year.

Once you have exhausted your allotment of 5 FLEX-Days (40 hours), pay for any future unscheduled absences from work will be subtracted from your PTO balance and you will be assigned points for the absence.

Q. How will FLEX-Days actually work?

A. Below are examples of how the unscheduled FLEX-Days will actually work.

Example 1: You are scheduled to be in at 8:00 a.m. You get up to dress for work and realize that you feel terrible and have a fever. You call in to report that you’re sick and not coming to work. You have not used any of your FLEX-Days. You meet the prescribed call-in time. You use a FLEX-Day as unscheduled sick time and because you called in properly you will NOT receive a point for improper call-in and you will be paid PTO hours. Example 2: You have intermittent FMLA leave for migraines. It’s lunchtim e and you feel a migraine starting. It’s 100 degrees in the bakery and you want to go home. You will need to use ½ of a FLEX -Day to make up the rest of your shift. NOTE: Use of PTO is required for any FMLA leave.

Example 3: Your spouse, child under 18, or your parent has a medical emergency and is hospitalized, has emergency surgery, and is subsequently kept in the hospital for 4 days, needing you to “care” for them.

Provided the proper certifications are submitted, this is an FMLA-eligible leave. The leave will be paid for out of regular PTO and does NOT count toward FLEX-Days.

Example 4: Your spouse/significant other goes into labor and you miss work to go to the hospital for the birth of your child. This will be considered as part of your parental leave and no PTO, FLEX-Days, hours or points will be assigned even if you are unable to follow the call-in procedures. We do request that you check in with us by midway through your shift to avoid points being assigned for a no call/no show.

Q. How will I know my available FLEX-Days?

A. Your available total PTO accrual will be reflected on your pay stub each week. We are reconfiguring our payroll and timekeeping systems so that the number of hours used as FLEX-Days YTD reflects on your pay stub each week. You will need to subtract that number from 40 to determine how much time you have available for the year and then compare that number to your total PTO accrual. Example. Your paystub shows that you have used 24 hours of PTO as FLEX-Days YTD. Subtracting 24 from 40, you have 16 hours to use as FLEX-Days for the rest of the calendar year. You will then compare the 16 hours to your total PTO accrual. Your total PTO accrual shows as 20 hours. As long as you have no PTO already scheduled, you can use 16 of your 20 hours of PTO accrual as FLEX- Days, but then you’re out of FLEX -Days for the calendar year.

ATTENDANCE BONUS

As stated, our PTO policy is designed to give you flexibility to attend to your personal and family needs. We want you to take your time off; but, we also want you to be here when you’re scheduled.

Overtime is expensive.

Not being able to leave when you’d planned on it because someone doesn’t come in hurts morale.

For employees that do not take ANY unscheduled PTO (FLEX-Days) in a 6 month period (Jan 1 to June 30 and July 1 st to December 31), the company will pay employees a $250 net check (or $500?) by the 3 rd pay period after the end of each 6 month period.

That’s an addi tional $500 per year that you can earn just by coming to work.

SCHEDULED PTO

You may schedule your PTO per the matrix on page 3 of this policy schedule. Some scheduled PTO is required to be in 3-day or 5-day blocks of time while some PTO is allowed to be scheduled on an individual day basis.

Again, good communication is key. F or time away from work to be considered as “scheduled,” your request must be put in writing using a PTO Request Form and approved by management at least 17 days prior to when you are requesting the PTO. Once a schedule has been posted, or the allowed number of people per shift/line have been approved for PTO, no more scheduled absences will be approved and any missed time will be considered as “unscheduled” and will count against your FLEX -Days.

TIP: Communication is key to this policy. You should let your supervisor know your request AS SOON AS POSSIBLE. Again, existing rules about the number of people per shift or line that can be absent do apply.

Example 1: Your son is starting first grade in 1 month. You want to take him to school on his first day but it is a normally scheduled work day for you. As soon as you can, you need to complete a PTO request form asking for the day off and then give it to your supervisor for approval. PTO will cover the hours of your shift that you miss.

No points will be assigned.

It is also possible that your supervisor may grant you permission to trade shifts with someone. If you are able to successfully trade shifts for that day, no PTO use will be required.

Example 2: You have a week of PTO scheduled and approved for a family cruise in 2 months. You have 60 hours of PTO left. One month before you leave, you get the flu and are out for 5 days, reducing your available PTO to 20 hours. You will not be able to accrue enough time over the next 30 days to gain the 20 hours needed to be paid for scheduled week.

It is important that you manage your time. You may have to weigh the importance of what you want to do today with what you have scheduled later on in the year.

Example 3: Your favorite sporting event is coming to town on a regularly scheduled work night for you. You put in your request for PTO in as soon as you know about it and your request is approved. Enjoy your paid night out! Again, if you receive permission to trade shifts and are successful in doing so, no PTO use will be required.

STD WAITING PERIOD

There is a 8-working day waiting period before disability benefits are paid. Employees that are on approved medical leave will be required to use PTO for the 8-working day disability benefits waiting period. This waiting period will NOT count toward FLEX-Days, even if your absence was unexpected. Best practice is to be aware of your PTO availability and budget your accrual (save some) in case you get sick. If you are a newer employee, you could also save your personal holidays until later in the year to assist you financially if you become unexpectedly ill.

If you are sick and your absence is not FMLA qualifying (for example a stomach bug, dental issues, or the flu in most cases), you will accrue points if you have no PTO available. Absences are NOT excused/unexcused; however, if you have no PTO available, w e will require a doctor’s excuse stating that you were restricted from working for the entire period of your absence. Only then, will we count the entire period as 1 absence and assign you 2 points.

If you are out longer than 8 days, you will need to contact The Hartford to establish a short-term disability claim. FMLA may apply – please see your HRBP for information.

A WORD OF CAUTION

You are accruing a bank of paid time away from work to manage as you see fit, within certain guidelines. We have increased every technician’s accrual so that you accrue more PTO and so that you accrue it faster. But you still need to be aware of your PTO accrual. Under our Attendance Policy you will be assigned points if you exceed your PTO accrual or exceed your allotment of unscheduled PTO. The Company is allowing you to use 5 days of your total PTO accrual as unscheduled FLEX-Days BUT FLEX Days are not automatically set aside for your use. FLEX-Days are carved out of your total PTO accrual and must either be carried over as total PTO accrual from a previous year or be earned over time in the current year. You are never allowed more than 40 hours of FLEX-Days per calendar year. Example 1: You were hired December 18, 2019. One January 2, 2020, you call in and say that you are using a FLEX-Day and are not coming in to work today. When you return to work on January 3, you will receive up to 3 points, 2 points for the absence and a potential point depending on whether or not your called in within the proper timeframe. But, I thought I had FLEX-Days? If you are a new employee, you accrue 1.846153 hours of PTO per week, meaning it will take you 5 weeks to accrue 8 hours of PTO. Plus, you are not allowed to use your PTO until you have been employed for 30 days.

Example 2: It is March and you have already used your 5 FLEX-Days. You wake up feeling very sick. You call in to report that you are sick and won’t be in. Here’s what happens:

● You will be charged any accrued PTO for the absence; and ● If you call in per the appropriate call -in procedures, you will receive 2 points for the absence. ● If you did NOT call in per the appropriate call -in procedures, you will receive 3 Points: 1 point for failing to call in properly and 2 points for the absence.

But, I thought I had FLEX-Days? You had 40 hours of FLEX-Days for your use throughout the whole year. You used them by March and did not have them when you needed them.

Example 3: You have 8 hours of PTO accrual. You decide that you want to take one of your pre-scheduled days off. That’s approved and you take the time. The next week, you wake up with a stomach virus and can’t come to work saying that you want to use one of your FLEX- Days. You don’t have it and you are then subject to the attendance policy and could receive up to 3 points.

But, I thought I had FLEX-Days? Your Flex-Days are a carve out of your total PTO accrual. You used your total PTO accrual as soon as you got it, leaving you no bank to use as a FLEX-Day.

Example 4: You are a 4 year employee, earning 18 days of PTO throughout each year. You accrue 2.307692 hours of PTO per week, meaning it takes you almost 4 weeks to earn a day of PTO. You carried over 32 hours of PTO from 2019. In mid-January, you get the flu and are out 5 days. But, I thought I had FLEX-Days? You are required to use PTO for all time away from work. The 32 hours of PTO that you carried over plus the first 2 weeks accrual from January will be deducted from your PTO accrual for the 5 days that you were out. At the end of January, you will only have 4.6154 hours of PTO available. If you call in on February 1 and say you are taking a FLEX-Day, unless your GM allows you to use a personal holiday, you won’t have it and are subject to the attendance policy. ************************************* Your total PTO availability changes every week and you are responsible for knowing what PTO you have available. Your total accrued (available) PTO is on your paystub each week.

Hours are made available to you and it is up to you to manage them. Points can and will be assigned if you exhaust your available PTO and then need it for unforeseen circumstances.

RECAP

● If you do not properly manage your PTO, you may find yourself without any PTO for prescheduled absences. Once your accrual is either exhausted or reduced to where there is not enough to cover your absence, you are subject to the attendance policy for any absences, even if they were scheduled in advance. ● All of your PTO is one accrual. We are carving 5 days out of your annual accrual that you may elect to use as unscheduled FLEX-Days. THESE DAYS ARE NOT AUTOMATICALLY SET ASIDE FOR YOUR USE. Available FLEX-Days are either carried over as total PTO accrual from a previous year or accrued as total PTO over the course of the current year. Your available total PTO accrual will be reflected on your pay stub each week. We are reconfiguring our payroll and timekeeping systems so that the number of hours used as FLEX-Days YTD reflect on your pay stub each week. You will need to subtract that number from 40 to determine how many hours of FLEX-Days you have available and then compare that number to your total PTO accrual.

● Since you must use PTO for any time away from work, it is possible for you to exhaust your PTO availability without ever taking any FLEX-Days.

Once you have either exhausted those 5 days or exhausted any PTO time that you COULD HAVE USED AS FLEX-DAYS, you will still be charged PTO for any unscheduled absence but you will also be subject to the attendance policy below for unscheduled absences in excess of your 5 allowable unscheduled days. TIP: These days should be saved for when you truly need them. Your PTO Time is yours to use so you CAN burn through your them, but if you’re like most people, you WILL need them at some point. Hours are being made available to you for flexibility when

you need it. If you mismanage them and need them later, you will receive points and the appropriate level of discipline up to and including termination of employment.

With your General Manager’s approval, Personal Holidays may be used toward your F LEX-Days. If used as unscheduled leave, they are “in place of FLEX - Days” not “in addition to” FLEX -Days. Under this policy only 5 days (or 40 hours) of FLEX-Days are available. ● Absences for company-recognized holidays, paid personal holidays, medical Leaves of absence extending beyond the 5-working day waiting period, and time away from work for parental, jury duty, or covered bereavement leaves are excluded from the Company’s PT O policy and from the disciplinary procedures below. Acceptable documentation may be required to receive pay under these separate benefits policies. ● Documented, approved military leave (including Guard or Training Duty) is excluded from the points system. Use of PTO is not required but may be requested in writing on a PTO request form. ● Absences for approved FMLA leave are excluded from the point system but will require the use of PTO to the limits of the Company’s medical leave policy (for an employees’ serious health condition) or to the employee’s full accrual for other qualifying FMLA absences. Proper notice is still required. ● Your PTO is a benefit to you and you are entitled to use your full accrual every year. This attendance policy allows you to manage your PTO the way that best fits your needs. You are expected to manage your PTO in a responsible manner.

ATTENDANCE POLICY

POINT SYSTEM

EACH TARDY

=

1/2 POINT

EACH LEAVING EARLY

=

1/2 POINT

EACH INCOMPLETE SHIFT

=

1 POINT

EACH UNSCHEDULED ABSENCE

=

2 POINTS

IN EXCESS OF FLEX DAYS OR IN EXCESS OF ACCRUED PTO

IMPROPER NOTICE OF ABSENCE

=

1 POINT

EACH NO CALL/NO SHOW

=

3 POINTS

EACH ABSENCE IN VIOLATION OF FLEX-RULES =

2 POINTS

Absences covered by any legally protected leave, such as the Family and Medical Leave Act, are not counted or otherwise considered for disciplinary or any other adverse action; however, if you fail to meet proper call-in procedures, leave may be delayed or denied which MAY result in the assignment of points.

Points are assigned per the following chart. After point becomes 6 months old, it will drop from your attendance record.

DEFINITIONS

● No Call/No Show is defined as not calling by the mid-point of the scheduled shift. ● Tardy is defined as clocking in between 4 minutes and 1 hour late for your scheduled shift. ● Leaving Early is defined as leaving work between 1 minute and 1 hour early at the end of your scheduled shift. “Leaving early” requires approval from your supervisor. ● Incomplete Shift is defined as arriving more than 1 hour late or leaving more than 1 hour early. ● Proper Notice is defined as calling in at least 2 hours prior to the start of your scheduled shift.

GUIDELINES

1. Good attendance is a requirement of continued employment and employees are expected to manage their PTO and their attendance record accordingly. Remember, ANY absence from work not covered under a separate benefit requires the use of PTO.

2. Once an attendance point becomes 6 months old, it drops from your attendance record and is no longer considered in the next step of the attendance point system.

3. Any employee who will be tardy or absent from work must notify his/her supervisor (or other designated mana gement official) at least one (1) hour prior to the employee’s scheduled reporting time. The employee must be the one giving the notice, unless it is not possible to do so due to his/her illness or injury. Employees failing to provide such notice may receive one (1) point for improper notice, depending on the circumstances of each case. 4. Any employee clocking or signing in to work more than one hour after his or her scheduled starting time without proper notice will be charged points for both an incomplete shift and for improper notice. 5. Employees may clock in up to 5 minutes before the scheduled start time. If you clock in earlier than 5 minutes before your scheduled start time without your supervisor’s approval you will be paid for all time worked but you may be subject to disciplinary action for clocking in early.

You may clock in up to 4 minutes after the scheduled start time without being considered tardy.

6. No employee will be terminated under this policy unless they have received a Last and Final Warning at least once in their career with the Company (unless for violations of rule number 10).

7. Absences of more than three (3) consecutive days require the company to determine whether or

not you are entitled to job protected leave. If the need for leave is foreseeable (e.g., a scheduled surgery or appointment for which you must travel), you are required by federal law to provide the Company with appropriate notice as well as providing proper medical documentation to certify your need for leave. If the need for leave is not foreseeable (e.g., a medical emergency), You are required by federal law to provide proper medical documentation to certify your need for leave as soon as you return to work. Please see your Human Resources Business Partner for additional details.

The use of accrued, available PTO will be required in either situation.

8. Employees on reasonable accommodation medical leave (up to 26 weeks) are required to report to management by the 10 th of each month in order to advise us of your intention to remain on medical leave. Failure to do so will be deemed as a voluntary resignation of employment. Additionally, under this policy you are required to notify The Hartford that you have been or will be absent from work so that your short-term disability benefits are properly initiated and tracked. 9. M anagement may require an employee to provide medical evidence or undergo a fitness for duty examination and engage in an interactive process with the company if there is a question concerning your ability to perform essential functions of your job safely and on a regular basis, with or without a reasonable accommodation.

10. Any employee who fails to report or call in for two (2) consecutive scheduled working days, and who is not otherwise on an approved leave of absence, will be deemed to have voluntarily quit.

11. You will not be allowed to use FLEX-Days the day before, the day of, or the day after a scheduled paid holiday. Calling in on one of these days will be considered a violation of FLEX rules.

GMP & Facility Work Rules

GOOD MANUFACTURING PRACTICES

INTRODUCTION

In the effort to produce safe and quality products, Flowers Baking Co. of Knoxville, LLC has adopted the following good manufacturing practices. The practices include FDA (21CFR,110), Flowers ’, and customers ’ requirements.

GOOD MANUFACTURING AND WORK PRACTICES:

1. All employees must bec ome thoroughly familiar with FBC of Knoxville’s Good Manufacturing Practices (GMPs); failure to comply with any GMPs may result in a disciplinary action.

2. Employees suffering from an infectious disease that is transmissible through food or working in food handling areas are not permitted in the processing areas. A supervisor or HR shall be notified immediately.

3. Cuts, abrasions, sores, lesions, or other skin openings on hands or exposed skin must be sanitized and covered with a company approved covering or bandage (e.g. metal detectable bandages) and glove, where applicable. Band aids must be company issued and bandage log filled out.

4. Jewelry such as rings, watches, necklaces, earrings, or other exposed body piercings shall not be permitted in the processing area, with the exception of medical alert necklaces and wedding bands that must be metal detectable without stones that includes no jade, ceramic, silicone, or wood permitted out on the processing floor.

5. Hands and fingernails must be kept clean and fingernails must be properly trimmed. Nail polish, false fingernails, false eyelashes, and other cosmetic devices are not allowed in the plant.

6. All employees and visitors shall wash hands thoroughly using an approved antibacterial soap and warm water after visiting the restroom, when beginning or returning to work, or whenever there is a risk of contaminating the work area or product.

7. Excessive perfume or aftershave shall not be worn.

8. Shoes and boots must be constructed of a smooth leather-type material with slip resistant soles. No cloth, canvas, or mesh material is acceptable. Any type of shoe leaving a part of the foot exposed is not acceptable for employees working in production zones.

9. All belts shall be of the solid leather-type with a simple metal belt buckle. Cloth belts or belts with adornments of metal or other material are not acceptable for employees working in production zones.

10. Clothing worn on the production floor must be approved for specific job use. No buttons are allowed on the uniforms except for those employees that are not directly involved in the manufacturing process. Additionally, hoodies are not permitted on the production floor.

11. Uniforms shall be maintained througho ut the employees’ shift. If the uniform becomes soiled or contaminated, clothing must be changed, or the employee may use an approved temporary disposable covering until the end of the shift. 12. Personal items, including clothing, may not be stored in the processing areas or warehouses. Personal clothing and items must be stored or hung separately from uniform items. Uniform lockers are for uniforms only. 13. All employees must properly wear a hairnet. Bandanas or similar head coverings may be neatly worn under the hairnet. Employees with beards, goatees, and mustaches must wear a beard net. Sideburns must be neatly trimmed and may not extend more than one inch below the bottom of the ear, or a beard net must be worn. 14. Eating, drinking, chewing gum, mints or hard candies, etc. and use of tobacco (including electronic cigarettes) are prohibited except in designated areas. This includes the use of lozenges. Food, drink, tobacco products, etc. must be stored only in designated areas. Storage of open food and drink containers is prohibited. Food and drink may not be stored in locker rooms.

15. Hearing protection must be worn on the production floor. Earplugs must be company issued and metal detectable.

16. Pens and other loose items must not be carried above the waist, Company issued cooling towels secured around the neck are permitted. Pens must be metal detectable. Pencils are not allowed in production areas.

17. All employees are responsible for maintaining their work area in a clean and tidy condition. Broken packages or spilled product should be cleaned up immediately.

18. All utensils, tools, and knives that contact product must be company issued, kept clean and well maintained. Maintenance tools must be kept clean, cleaned after repairs, and remain in good working order to prevent contamination.

19. Use of in-process containers for anything except for which they are designated is not permitted. Employees must adhere to the in-plant color-coded system of utensils and receptacles for product and waste. Food contact containers and utensils shall not contact walking surfaces.

20. Employees must report all product contamination, potential contamination condition or practice, defective, broken, or missing equipment or utensils to their Supervisor.

21. Hose nozzles (e.g. water, compressed air) must be kept off of the floor. Unless in accordance with an SOP, compressed air guns are not to be used during production hours; vacuums, brushes, brooms, and dust mops must be used first. Compressed air shall not be used to sweep. Blowing off clothing is not permitted.

22. All items must be stored off the floor on pallets with slip-sheets or on racks. No wooden pallets are allowed in the plant for permanent storage.

23. There shall be no use of communication devices like telephones, pagers, etc. on the production floor, except where permitted by management.

24. For safety and legal compliance reasons, employees medically required to have essential personal medications available while working in the production area must report this to Human Resources when such medications have the potential to cause product contamination or could impact the employee’s ability to safely perform his or her job.

FACILITY WORK RULES

In order to promote the orderly, efficient and safe operation of the facility and provide a pleasant and safe work place for all of us, the Company has adopted and will enforce these work rules. Please read these rules and corresponding disciplinary procedures thoroughly. If you have any questions, see your supervisor, department head or the Director of Human Resources. The Company may change or terminate any of the published or unpublished personnel policies, practices, or employee benefits, without advance notice. In addition, neither these work rules nor any other communication by any Company representative, written or oral, nor any other conduct of any kind between employees and any Company representative, is intended in any way to create an employment contract, or any other contractual undertaking, binding on either the Company or any employee. Work Rules are enforced with disciplinary action ranging from verbal warning to immediate discharge, according to the nature of the offense, overall frequency of the offense, and employee record. The listed offenses are not all-inclusive . Any conduct which could jeopardize health or safety or otherwise violate accepted standards of behavior may result in appropriate discipline, up to and including immediate discharge. Nothing in these rules is intended to prevent communications concerning wages, hours, and working conditions or any other communication allowed by law. Nor is anything in these rules otherwise intended to prohibit legally-protected activity or be construed to be inconsistent with any applicable law. Should you have any questions concerning whether or not certain communications and/or conduct is legally protected activity, you may contact the Director of Human Resources. I. DISCIPLINARY PROCEDURES

WORK RULES

II.

The work rules are divided into two sections:

A -

General Conduct

B -

Dress Code, Personal Hygiene and other Good Manufacturing Procedures, and Safety

GENERAL CONDUCT RULES

A.

These are infractions of such a serious nature that they will normally result in immediate discharge without prior warning.

1. Knowingly falsifying or failing to disclose any employment-related information (oral or written) or any other type of dishonesty before or during employment with the Company. 2. Falsification of time keeping records. This includes improper recording of time on written time cards, clocking in or out for another employee, or asking another employee to clock in or out for you. If a mistake is made on the time card/ sheet, it must be corrected and initialed by Company supervision and the employee involved. 3. Performing any work off the clock. The Company follows all applicable federal, state and local employment laws and has trai ned the Company’s management team in those laws. In the unlikely event that you are asked to work off the clock, please report this to a Human Resources representative immediately.

4. Theft. This includes taking Company property without authorization and also includes taking another employee’s property (i.e., lunch, personal belongs, etc.).

5. Violating the Company's policy on drugs and alcohol. The Company policy on drugs and alcohol is separately posted on Company bulletin boards.

Disclosing the company’s trade secrets, confidential, or propriety information, which is defined to include company information (whether obtained from hard copy, electronic, or other confidential company source) relating to sales figures, product pricing, production costs, product plans, lists of actual or potential customers, customer transaction information, list of actual or potential suppliers, supplier transaction information, technical and engineering details, manufacturing processes or techniques, financial performance data, financial plans, formulae, recipes, invention information, marketing and business strategies, and similar company business information not generally known to the public. As noted in the introduction to these rules, this rule, as well as all others, do not prohibit employees from discussing wages, hours, or other terms and conditions of employment or any other matters the discussion of which is protected by law.

6.

Insubordination, which can include, but is not limited to, the following:

7.

▪ Disobeying or failing to carry out the instruction of a supervisor unless you are doing so under the Company’s Commitment to Safety policy.

▪

Interfering with a supervisor in the performance of his/her duties

▪

Threatening or abusive language and/or behavior directed

2024 Employee Handbook – B. Turner

toward a supervisor

8. Fighting, provoking a fight, verbal abuse or other intentional conduct which might cause physical or mental harm to another employee, supervisor, customer or visitor.

Violation of the Company’s Policy Against Harassment. This policy is separately posted on Company bulletin boards.

9.

Intentionally damaging or vandalizing Company property or the property of another employee, customer, or service contractor.

10.

11. Using Company time or resources for personal gain unrelated to employment with the Company.

Willful failure to perform to the best of your ability while on working time.

12.

13. Failure to follow the proper Lockout/Tagout procedures before repairing, cleaning or maintaining machinery; including the improper removal, tampering with, or failure to use an approved lockout/tagout device.

Failure to strictly follow proper Confined Space procedures when entering a confined space.

14.

15. Removing a machine guard for any reason other than when absolutely necessary for maintenance purposes. Defeating safeguards or bypassing safeties. Failure to stop equipment before clearing a jam. Placing body parts into a running machine. 16. Bringing or possessing explosives or weapons on Company property, including but not limited to firearms or a switchblade knife, except that an employee who works in a facility where state or local law requires employers to permit possession of firearms or related items on Company property, the Company will comply with such requirements to the extent necessary to comply with such state or local laws. Generally, these laws limit the rights to employees who possess a valid concealed weapons permit and are not otherwise disqualified by law from possessing a firearm, and further require that the firearm be properly stored out of sight in a container within the employees locked vehicle. However, the applicable state or local law should be consulted before making any final determination on the scope of protected rights, if any.

Sleeping while on the job.

17.

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18. Leaving the facility without permission from your supervisor. It does not include any legally protected activity.

Permitting unauthorized riders in Company vehicles (if applicable).

19.

20. Having two chargeable vehicle accidents within a 12-month period or two chargeable personal injury accidents within a 12 month period. A chargeable accident is an accident which results in damage to a vehicle, equipment or other property, an accident that causes personal injury , or an action that endangers self or others that could have been prevented if the employee had followed the Company's safety procedures or applicable laws or regulations (for example, striking a stationary object with a vehicle, driving faster than the speed limit or in violation of other traffic rules, lifting a heavy object without obtaining assistance, failure to wear protective gear, etc.). For drivers of CMVs, please see rules 16 (a and f) and 17 (c) on pages 11 and 12 of the work rules. 22. Unauthorized use in any working area or while on working time still or video cameras, tape recorders or any other audio or video recording devices such as digital cameras, camera cell phones, etc., whether said devices are the employee’s personal property or are issued by the Company. “Working time” is the time employees are expected to be working and does not include authorized meal time, breaks, or other authorized periods during the work day when the employee is officially relieved from performing work duties. Such use is prohibited to protect the intellectual property in the proprietary processes and equipment that are unique to our operation and a valuable component of our ability to remain competitive. 21. Any off-duty conduct which could impact or call into question the employee's ability to perform his or her job.

Violation of the Company’s Policy on social media use.

23.

Operating or allowing a CMV to be operated with a safety defect.

24.

25. For operators of CMVs – or for any employee driving while on company busi- ness - being convicted of a hit and run accident, reckless or careless driving, or driving under the influence of alcohol or drugs while on duty .

26. Driving with a suspended or terminated license (for cause – not because of some- thing the state arbitrarily does).

27. Driving or allowing a CMV to be driven if the driver’s Annual Inquiry and Re- view of Driving Record has not been completed.

Driving

in

excess

of

DOT

hours

limitations

because

of

28.

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inaccurate/unsubmitted/unrecorded driving time for the Company or another company.

29. Knowingly and willingly allowing or requiring an operator of a CMV to drive in excess of DOT hours limitations.

30. Failure to report a CMV accident or incident of vehicle theft, vandalism or rental car incidents.

31. Intentional falsification by driver or modification by management of daily time records or graph logs.

Failure to cooperate fully and respectfully in any DOT inspection.

32.

Driving before the out-of-service time period or condition is completed.

33.

34. Having prohibited items in Company Vehicles. Examples of such prohibited items are firearms, knives exceeding 4 inches, ammunition, explosives of any kind, novelty items that can be portrayed as a weapon, alcohol products of any kind, and illegal substances.

35. Failure of management to have preventive maintenance performed on all vehicles at least every 12 months.

DRESS CODE, PERSONAL HYGIENE AND OTHER GOOD MANUFACTURING PRINCIPLES, AND SAFETY

B.

These are rules, which if broken, normally result in a documented verbal warning at the first offense and further progressive disciplinary action if the individual's conduct does not improve. Employees should be aware, however, that any offense will be considered on its own facts, including the record of the employee, in determining appropriate disciplinary action which may include discharge. The listed offenses are not all- inclusive . Any conduct which could jeopardize health or safety, interfere with or damage the business or reputation of the Company, or otherwise violate accepted standards of behavior will result in appropriate discipline; up to and including immediate discharge, with or without progressive steps. These steps are as follows:

Offense

Disciplinary Action

First

Documented Verbal Warning.

Second

Written Warning.

2024 Employee Handbook – B. Turner

Third

Non-Exempt Employees Only - One Day Decision Making Leave Without Pay

(This allows employees time to decide whether or not to continue to work for the Company and abide by the appropriate work standards).

Exempt Employees Only - Subject to a disciplinary probation period with pay.

Fourth

Subject to Discharge.

This disciplinary policy is based on rolling twelve (12) month period. For example, if you have a documented verbal warning and it becomes twelve (12) months old, then it drops from your record in considering the next disciplinary step.

Incompetent, unsatisfactory or careless performance of duties.

1.

2. Horseplay. This can include practical jokes, throwing product, wrestling, and/or using Company equipment for purposes other than those intended.

Failure to perform work in a timely and efficient and/or safe manner.

3.

Disturbing other employees while they are working.

4.

5. Soliciting for any purpose on Company property during the working time of either the employee soliciting or the employee being solicited, or distributing any type of literature during working time or at any time in work areas. Working time is the time employees are expected to be working and does not include free time such as meal periods or other authorized breaks.

Posting information on Company bulletin boards without prior approval of the director of human resources.

6.

Being in the interior of the plant or in other working areas unless you are reporting to work, on duty, or leaving work.

7.

Bringing or allowing any non-employee on Company property without prior permission from management and appropriate adherence to the Visitor Access Policy.

8.

Engaging in any conduct on Company property that creates a health, security, or safety risk.

9.

2024 Employee Handbook – B. Turner