The document is an employee handbook for Panama Canal Elevator Parts, Inc. that outlines company policies and employee benefits and responsibilities. It covers topics such as equal employment, sexual harassment policy, communications procedures, job categories and responsibilities, wages, fringe benefits like health insurance and retirement, time off policies, attendance guidelines, and health and safety practices. The handbook is intended to inform employees and act as a reference guide for workplace rules and standards.

1. MODEL HANDBOOK
PANAMA CANAL ELEVATOR PARTS, INC.
EMPLOYEE HANDBOOK
DESIGNED BY THE LAW FIRM OF KOLLMAN & SAUCIER TO BE USED AS A GUIDE
IN DESIGNING AN EMPLOYEE HANDBOOK. IF YOU HAVE QUESTIONS, CALL
FRANK KOLLMAN AT 410-727-4300.
TABLE OF CONTENTS
WELCOME TO PANAMA CANAL ELEVATOR PARTS, INC. -----------xHISTORY-------------------------------------------------------------------------------xABOUT THIS HANDBOOK--------------------------------------------------------xEQUAL EMPLOYMENT POLICY------------------------------------------------xA.
B.
C.
Policy of No Sexual Harassment-------------------------------xDefinition of Sexual Harassment-------------------------------xComplaint Procedure----------------------------------------------x-
COMMUNICATIONS -- THE KEY TO A REWARDING JOB-------------x1.
2.
3.
4.
5.
Talk to Your Supervisor-------------------------------------------xProblem Resolution Procedure---------------------------------xOpen Door Policy---------------------------------------------------xBulletin Boards------------------------------------------------------xRegular Employee Meetings------------------------------------x-
YOUR JOB-----------------------------------------------------------------------------xEmployee Categories-------------------------------------------------------xRegular Full-time Employees---------------------------------------------xTemporary Employees-----------------------------------------------------x-

2. Orientation------------------------------------------------------------------xEvaluation Period---------------------------------------------------------xWorking Hours-------------------------------------------------------------xOvertime--------------------------------------------------------------------xEvening Shift Differential-----------------------------------------------xTime Clock-----------------------------------------------------------------xPayroll Information-------------------------------------------------------xSecurity Check------------------------------------------------------------xWAGES------------------------------------------------------------------------------xYOUR FRINGE BENEFITS----------------------------------------------------xMajor Medical and Hospitalization Benefits-----------------------xLife Insurance-------------------------------------------------------------xProfit Sharing Retirement Plan---------------------------------------xDisability--------------------------------------------------------------------xLost Time Benefit--------------------------------------------------------xSocial Security------------------------------------------------------------xBreaks-----------------------------------------------------------------------xMeals------------------------------------------------------------------------xPicnic and Christmas Party--------------------------------------------xTIME OFF---------------------------------------------------------------------------xVacation--------------------------------------------------------------------xHoliday----------------------------------------------------------------------xPersonal Days------------------------------------------------------------xSick Leave-----------------------------------------------------------------xBereavement Leave----------------------------------------------------xJury Duty-------------------------------------------------------------------xWork Reductions--------------------------------------------------------xIllness Leave--------------------------------------------------------------xFamily and Medical Leave--------------------------------------------xMilitary Leave-------------------------------------------------------------xIn Case of Accident-----------------------------------------------------xCompany Vehicles------------------------------------------------------xMoonlighting--------------------------------------------------------------xWHAT WE EXPECT FROM YOU-------------------------------------------xIntroduction to Standards of Conduct------------------------------xKeep us up-to-date-----------------------------------------------------xKeep Confidential Information Confidential----------------------xHelp Us Predict Our Needs------------------------------------------xMajor Offenses----------------------------------------------------------x-

3. Progressive Discipline - Minor Offenses--------------------------xDRUG POLICY-------------------------------------------------------------------xYOUR ATTENDANCE GUIDELINES---------------------------------------xPolicy-----------------------------------------------------------------------xLateness------------------------------------------------------------------xAttendance Records---------------------------------------------------xAttendance/Lateness Incentive Program-------------------------xHEALTH AND SAFETY PRACTICES--------------------------------------xNO SOLICITATION-------------------------------------------------------------xOUR RESPONSIBILITY-------------------------------------------------------xFIRST DAY CHECKLIST------------------------------------------------------xRECEIPT FOR THE HANDBOOK------------------------------------------x-
Welcome to Panama Canal Elevator Parts, Inc.
The success of any company depends on its employees. Panama Canal Elevator
Parts is no different. You were selected to work here because we believe you have the
qualities to ensure our success in the future. By becoming an employee of Panama
Canal Elevator Parts, you have joined a company with a fine reputation for service,
quality, and dedication.
Panama Canal Elevator Parts is dedicated to a program of two-way communication
between employees and management. You will find that we keep employees informed
of new ideas, procedures, and business developments, and that we encourage your
input. This Handbook was produced to give you the information you will need while an
employee here, including a description of our benefit and communication programs.
Take the time to read this Handbook. Ask questions of your supervisor if there is
anything you do not understand. But most of all, feel free at any time to discuss your
concerns with management -- it's the only way we'll ever know about them.
Welcome.
Robert F. Jones
President

4. HISTORY
Panama Canal Elevator Parts, Inc., has been in the elevator contracting business since
1926. It was founded that year by Allen Jones, the inventor of the titanium elevator
cable. The Company has been a licensed dealer of Tingle Elevator products since
1948. In 1926, there were two employees. Today, there are over fifty, and each of them
is devoted to maintaining the fine reputation Panama Canal Elevator Parts holds in the
industry.
ABOUT THIS HANDBOOK
This Handbook gives a brief, general description of the benefits and personnel
policies of Panama Canal Elevator Parts, Inc. Obviously, we could not begin to explain
every Company policy in this Handbook, and some details and exceptions have been
omitted to keep it reasonably brief.
The Handbook, therefore, should not be considered the total official statement of
Company policy. You should consult your supervisor or the office about any questions
you have.
This Handbook is intended to be used as a guide.
There may be occasions when the Company must change rules or give current rules a
different interpretation than previously made. The Company has the right to modify
policies, both written and unwritten, as business requires. This Handbook is not an
employment contract, and both the employee and the Company understand that
employment may be terminated by either party at any time, for any reason and without
notice.
EQUAL EMPLOYMENT POLICY
The Company supports the principle of Equal Employment Opportunity. It is our policy
not to discriminate against any applicant for employment or employee because of race,
color, religion, age, sex, national origin or ancestry, marital status, veteran's status, or
disability in accordance with applicable federal, state, and local law. Any incident that
you believe involves discrimination or harassment should be brought to the immediate
attention of your supervisor or management.
SEXUAL HARASSMENT POLICY
Policy of No Sexual Harassment
It is the policy of The Company that there shall be no harassment of any employee
on account of an employee's sex. The Company will not tolerate sexual harassment of
its employees by anyone - supervisors, other employees, clients, or customers. Persons

5. harassing others will be dealt with swiftly and vigorously. Anyone who violates this
policy will be subject to disciplinary action up to and including discharge.
Definition of Sexual Harassment
Sexual harassment is behavior of a sexual nature which is unwelcome and
personally offensive to its recipients.
Unwelcome sexual advances, requests for sexual favors and other verbal or
physical conduct of a sexual nature constitute "sexual harassment" when: submission to
such conduct is made explicitly or implicitly a condition of an individual's employment;
submission to or rejection of such conduct is used as a basis for an employment
decision affecting the employee; or the harassment has the purpose of effect of
unreasonably interfering with the employee's work performance or creating an
environment which is intimidating, hostile or offensive to the employee.
The following are examples of unlawful harassment:
1. Unwelcome sexual advances.
This means patting, pinching, brushing up against, hugging, kissing, fondling, or
any other similar physical contact considered unwelcome by another individual
2. Requests for demands for sexual favors.
This includes subtle or blatant pressures or requests for any type of sexual favors
accompanied by an implied or stated promise of preferential treatment or negative
consequence concerning one's employment status.
Verbal abuse or kidding that is sex-oriented and considered unwelcome by another
individual. This includes commenting about an individuals body or appearance where
such comments are beyond mere courtesy, telling 'dirty jokes," that are clearly
unwelcome and considered offensive by others or any other tasteless, sexually-oriented
comments, innuendoes or actions that offend others.
Engaging in any type of sexually-oriented conduct that would reasonably interfere
with another's work performance. This includes extending unwanted sexual attention to
someone that reduces personal productivity or time available to work at assigned tasks.
Creating a work environment that is intimidating, hostile or offensive because of
unwelcome sexually-oriented conversations, suggestions, requests, demands, or
physical contacts.
Complaint Procedure

6. 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 a fashion as
possible. No person will be adversely affected in employment with the Company as a
result of bringing complaints of sexual harassment.
A WORD ABOUT UNIONS
At present, no group of employees at Panama Canal Elevator parts has chosen to
be represented by a union. We believe this decision is in the best interests of the
employees, the Company, and the customers. We have achieved substantial growth
and personal achievement at Panama Canal Elevator Parts through a strong spirit of
cooperation and teamwork. Unions could weaken that spirit by turning employee against
employee and encouraging confrontations in which everyone -- the employees, the
Company, and our customers -- loses.
As you review this Handbook, keep in mind that the benefits listed here -- health
insurance, vacations, and holidays, to name just a few -- have all been obtained by the
employees without employees having to pay their well-earned wages for union dues.
We also try hard to make sure that every employee is treated fairly, and have instituted
a problem resolution procedure to give each employee the right to have decisions of
immediate supervisors reviewed by higher levels of authority. In sum, unions are not
needed here.
COMMUNICATIONS -- THE KEY TO A REWARDING JOB
We want to hear from you, so we have established a communications program that
will help our employees do just that. Here's how it works:
Talk to Your Supervisor.
Obviously, most employee concerns can be resolved by talking to your supervisor
about them. He should be able to help in most cases. If you do not feel comfortable
discussing the specific problem with your supervisor, you may set up a meeting with the
Personnel Director.
Problem Resolution Procedure.
Sometimes, questions or problems will arise concerning your personal situation. We
have a 3-step procedure to deal with these problems. Here's how it works:

7. Step 1: Ask to talk to your immediate supervisor within one week of the
problem's occurrence.
Step 2: If the supervisor cannot resolve the problem to your satisfaction, you
may set up a meeting with the Personnel Director.
Step 3: If you are not satisfied with the Personnel Director's decision, you may ask
for a conference with the President of the Company.
Open Door Policy.
While we hope that most concerns and problems will be resolved at Step 1, if you
do not feel your problem is being given adequate attention, you are always free to walk
through the door of the President's office.
Bulletin Boards.
Check the bulletin boards. They contain important information for all of us.
Regular Employee Meetings.
Our President tries to meet with every employee at a group meeting at least four times a
year. Use these meetings to share your thoughts with management.
YOUR JOB
Employee Categories.
We have two classifications of employees at Panama Canal Elevator Parts:
Regular Full-time Employees.
Those employees who are regularly scheduled to work 40 hours per week.
These employees are normally eligible for vacation, holiday pay, group life insurance,
health insurance, and the profit sharing/retirement plan.
Temporary Employees.
These employees work on specific projects or for a maximum of four months per
calendar year. Summer help are classified as temporary employees. Their employment
ends upon completion of the project or period of time. They do not receive employee
benefits.
Orientation.

8. On your first day, your supervisor will go over your job duties and give you important
information about your job. A first-day checklist is provided in the front of this handbook.
Some jobs require more detailed orientation.
Evaluation Period.
All employees serve an evaluation period to allow us to get acquainted and
determine whether you are right for the job. In most cases, this period will be 90 days
from the date of hire, subject to extension at the discretion of your supervisor. Near the
end of the 90-day period, your supervisor will give you a written evaluation. Your work
performance will be evaluated and, based on this appraisal, a decision will be made
about granting you regular employee status, extending the evaluation period, or
terminating the employment relationship. Once the evaluation period is successfully
completed, and you have gained regular employee status, your seniority will be
retroactive to the date of hire for the purpose of determining length of service.
Working Hours.
Normal working hours are 7:00 a.m. to 3:30 p.m., Monday through Friday. Office
personnel work 8:00 a.m. to 5:00 p.m.
Overtime.
All hours actually worked in excess of 40 hours per week are compensated at the
rate of one and one-half times your regular hourly rate. Whenever possible, you will be
given advance notice as to overtime scheduling. Finally, Panama Canal Elevator Parts
tries to distribute overtime evenly, giving preference to qualified employees most willing
to work it. On occasions when overtime hours cannot be filled on a voluntary basis,
overtime work will be assigned by your supervisor.
Evening Shift Differential.
If you are required to work the evening shift, which is any shift beginning after 3:00
p.m., you will be paid a premium of $.25 per hour for ear hour worked during that shift.
Employees working a shift starting before 3:00 p.m. will not be paid a premium for any
hours they are held over past their regular shift. Time Clock. The time clock and your
card are located near the lunch rooms. Never punch or make entries on the time card of
another employee, or allow anyone else to make entries on or punch your time card.
Moreover, you should not clock in more than five minutes before your scheduled shift
starts or dock out more than five minutes after your scheduled shift ends, except with
the specific authorization of your supervisor.
Payroll Information.
Payday is Friday. The workweek runs from Thursday to the following Wednesday.
We do not release payroll checks to anyone other than the employee, except with the

9. written authorization of the employee. Please recognize also that we are required by law
to make deductions from your paycheck for federal and state withholding (income)
taxes, and for Social Security taxes (FICA). If you lose your check, you should
immediately contact your supervisor, who will notify the Office.
Security Check.
To insure that drugs, weapons, and other prohibit materials are not brought onto the
premises, we reserve the right to question, inspect, and search any employee or other
person before he or she enters or leaves the facility. All vehicles, lockers, containers,
handbags, parcels, and other belongs are subject to inspection. Refusal to comply is
grounds for immediate termination of employment.
WAGES
Panama Canal Elevator Parts pays wages that are competitive with other
companies in the Silver Spring, Maryland area. In addition to a general wage review
once a year, the Company is always reviewing individual wage rates to see whether
merit increases are appropriate.
Panama Canal Elevator Parts also has incentive programs, which add to your
paycheck. Bonuses may be given if justified by business conditions. We make every
effort to recognize employee contribution to our success.
YOUR FRINGE BENEFITS
In addition to your paycheck, you receive many valuable benefits. These benefits
are discussed in more detail in the separate policy handbooks you will receive
describing these benefit programs. In the event of any question or conflict, the terms of
the actual plan policy will control.
Major Medical and Hospitalization Benefits.
All Full-time employees are eligible for hospitalization and medical insurance
benefits programs upon completion of the 90 day evaluation period. All premiums for
this insurance, which includes dependent coverage, are fully paid by the Company.
Life Insurance.
If your death should occur while you are an employee, the beneficiary you designate
will receive a death benefit. The amount of coverage is set forth in your insurance
booklet. In addition to this company-provided insurance, you can purchase additional
life insurance coverage at group rates.
Profit Sharing Retirement Plan.

10. The Company sponsors a profit sharing retirement plan. Eligible employees will
receive a summary plan description detailing their benefits. Disability. The Company
contributes to the insurance funds that provide you with Worker's Compensation in the
event of an on-the-job injury, and Unemployment Compensation to provide you with
income if you lose your job through no fault of your own. Please remember that a delay
in reporting your work-related illness or injury could cause a delay in payment of your
medical bills or weekly disability. You must report any injury to the Office.
Lost Time Benefit.
The Company provides a lost time benefit if you are unable to work due to illness or
injury occurring off the job. See you benefit booklet for detail.
Social Security.
The Company also contributes an amount equal to a percentage of your weekly
salary to your Federal Social Security account (FICA). This is in addition to your
personal paycheck every week. If you are under age 65 and your disability is expected
to last at least 12 months and you are unable to work, a Social Security Disability
Benefit may be payable beginning with the sixth consecutive month of disability. The
amounts of these benefits vary and your social security office can help you in
determining the level of your benefit.
Breaks.
All employees receive two 20 minute breaks a day, which are scheduled by their
supervisor.
Meals.
The Company provides all employees with one uncompensated thirty minute meal
period per regular shift.
Picnic and Christmas Party.
The Company sponsors an annual picnic for employees and their families. At Christmas
time, the Company sponsors a party prior to the holiday.
TIME OFF
Vacation.
We believe that you need a vacation each year to rest and refresh you. At Panama
Canal Elevator Parts all regular Full-time employees are eligible for paid vacation. The
vacation allotted for regular Full-time employees is based on a five-day work week as
follows:

11. Years of Service
Vacation Allowance
1 full year to 3 full years 1 week
3 full years to 8 full years 2 weeks
more than 8 full years 3 weeks
The vacation year is the twelve-month period beginning with the employee's first
employment anniversary date, and each subsequent twelve-month period after that. At
the beginning of the vacation year, each employee is credited with the vacation
available to him under the above schedule, and may take that vacation at any time
during the year, as long as you give adequate notice and your supervisor approves of
your vacation schedule. An employee terminating employment for reasons other than
discharge (and who, in the case of voluntary resignation, has given the requisite two
weeks advance notice of resignation) will receive pay in lieu of any unused vacation
allowance with which he was credited on his last employment anniversary date.
VACATION MUST BE TAKEN WITHIN THE VACATION YEAR. IT CANNOT BE
CARRIED OVER TO THE NEXT YEAR. No payment will be made in lieu of vacations
not taken except to terminating employees as described above.
YOUR VACATION MUST BE SCHEDULED AND APPROVED AT LEAST
FOURTEEN DAYS IN ADVANCE BY YOUR SUPERVISOR. Approval of vacation at a
particular time may be denied due to business needs. Where business needs prevent
two or more employees from taking vacation at the same time, the supervisor will
determine the schedule, taking into consideration the relative seniority of the employees
to the extent practicable. Subject to scheduling problems, employees may take any
amount of their vacation allowance at any one or more times, except that one full year's
vacation may not be taken "back to back" with the next full year's vacation allowance.
Vacation pay may be received on the Friday immediately prior to the vacation
period, if requested. You must request such prepayment three weeks in advance by
using a Request for Vacation Pay Form available from your supervisor.
If a designated holiday is observed during your vacation period, you will be eligible
for additional time off with pay equal to the holiday time off for which you are eligible.
You will not, however, receive additional vacation time off due to illness or disability
occurring while on vacation. Your vacation allowance for a vacation year will be reduced
by one- twelfth for each full month of unpaid leave of absence during the previous
vacation year.
Holiday.

12. All regular Full-time and part-time employees who have completed the evaluation
period are eligible for "holiday pay" at their regular base pay for the following holidays:
New Year's Day
Labor Day
Memorial Day
Thanksgiving Day
Independence Day
Christmas Day
To qualify for holiday pay, you must work your last regularly-scheduled work day
before the holiday, your first scheduled work day after the holiday, and one day of the
work week in which the holiday occurs. If a holiday fails on a Sunday, Monday will be
the paid holiday; if the holiday falls on a Saturday, the preceding Friday will be the paid
holiday unless the Company notifies you otherwise. If an employee gives 14 days
notice, he will be allowed to take off the Monday after Thanksgiving without pay and
without penalty.
If you work on one day of the holidays listed above, in addition to receiving your
holiday pay at your regular base pay rate, you will be paid one and one-half times your
regular base pay for the hours worked on the holiday.
Personal Days.
After completing the evaluation period, each regular Full-time employee is eligible to
receive 2 personal days with pay per year. The employee may use these days for
personal business or emergencies. An employee may not use these personal days
either before or after a paid holiday or a vacation. Whenever possible, three days notice
should be given to your supervisor before taking a personal holiday.
Sick Leave.
Employees become eligible to take two days sick leave after six months of
continuous employment. After the six month period, employees become eligible to take
one day's sick leave for every ten weeks of continuous employment. After one year of
continuous employment, employees become eligible to take 5 sick days per year.
To qualify for sick leave, employees must call the office by 7:00 a.m. If no call is
made, no sick pay will be given. Failure to call the office when absent is also considered
an unexcused absence for purposes of discipline.

13. If an employee misses two consecutive days as a result of an illness, a doctor's
excuse must be provided. In addition, the Company reserves the right to require an
employee to provide a doctor's excuse where it appears, in the Company's judgment,
that the employee is abusing the sick leave privilege.
Finally, sick leave may be carried over from year to year. Because sick leave is for
sickness, however, employees will not be paid for any unused sick leave upon
termination, whatever the reason.
Bereavement Leave.
Regular Full-time employees who have completed the 90 day evaluation period will
receive time off with straight pay, for up to two of their regular scheduled work days,
from the day of death until and including the day of the funeral in the case of the death
of a member of the immediate family. The "immediate family" includes parents,
grandparents, step or foster parents, spouse, brother or sister, or children (including
stepchildren who live with the employee). Two days off without pay is available in the
case of the death of a stepbrother, stepsister, or stepchild who does not live with the
employee. It is your responsibility to notify your supervisor as early as possible to
request bereavement leave. Appropriate documentation is required by your supervisor
to authorize bereavement pay.
Jury Duty.
Regular Full-time employees who have completed the probationary period and are
required to be absent for jury duty will be granted paid time off for such duty. All
employees called for jury duty must provide their supervisor with a copy of the
subpoena, jury certificate, or court order before leave is granted, and again upon their
return to work. If you are not required to serve as a juror on a particular day, you must
contact your supervisor as soon as possible to report to work that day. Jury duty pay will
be calculated at the base rate of eight hours straight time for each day absent. No
overtime or holiday wages will be paid. All compensation received from the court,
including travel expenses, will be set off against the base pay and the employee will
receive the difference.
Work Reductions.
There may be times when business conditions make it necessary to reduce staff. In
the unlikely event this must happen, we will attempt to help you in every way we can.
If a staff reduction occurs, employees will be laid off according to length of service
based on date of hire (seniority), provided that their job-related qualifications and
abilities are relatively equal. If you are recalled from a staff reduction, your employment
with Panama Canal Elevator Parts will terminate unless you return to work within three
days from the date of the recall notice. Your recall notice will either be given in person,
by telephone, or by certified mail to your address currently on file with the Office.

14. Your benefits coverage will end on the last day worked prior to a staff reduction. If
you elect to continue coverage on your own, you should contact the Office for
information.
Illness Leave.
If you have completed one year's service, you are eligible for an illness leave, in the
Company's discretion, for a maximum of 60 days. In order to qualify, you must submit a
physician's statement. A medical release must be obtained in order for you to return to
work following the leave. The Company retains the right to require employees to
undergo a medical examination by the doctor of the Company's choice at any time in
order to determine physical ability or inability to work. Such medical examinations might
be required periodically during the leave. If an extension beyond 60 days is requested
prior to expiration of the original leave, you must receive the approval of the President
before the extension will take effect. A physician's statement is also required.
Premium for your group insurance will be paid by the Company for a period of 60
days while you are on an approved illness leave of absence. Beyond 60 days, if you
choose to continue insurance, premium payments must be made by the employee
directly to the Personnel Office.
Family and Medical Leave.
To be eligible for coverage, an employee must have been working for the Company
at least 12 months (cumulative) before the leave request and worked at least 1,250
hours during that time. Temporary or part-time employees working less than 1,250
hours per year are not eligible for family or medical leave.
Eligible staff are entitled to a total of 12 workweeks of unpaid leave during any
12-month period when leave is taken for one or more of the following reasons:
Birth or adoption of a child of the employee, or placement of a child with the
employee for foster care.
To care for the spouse, son, daughter, or parent of the employee, if the family
member has a serious health condition.
A serious health condition is defined as an illness, injury, impairment, or physical or
mental condition that involves inpatient care and/or continuing medical treatment.
A serious health condition will be supported by a timely certification from a qualified
health care provider of the employee. The Company may require and pay for a second
or third opinion from qualified health providers of its choice.

15. Thirty days advance notice is required when the leave is foreseeable. In addition,
when foreseeable leave is for planned medical treatment, a reasonable effort must be
made to schedule the treatment so as not to unduly disrupt the Company's operations.
Unused paid leave must first be applied before family/medical leave is available. for
example, unused vacation time will be applied before family leave is available. Unused
sick days and/or vacations days will be applied before medical leave to care for a family
member is available. Unused sick days, short term disability, and/or vacations days will
be applied before medical leave is available due to a serious health condition of the
employee. Family/medical leave may be used to make up the difference between
available paid leave as described above and twelve weeks.
Subject to the preceding provision, employees may retain other previously accrued
service and benefits while on leave. However, they will not accrue additional service or
benefits (vacation or sick days) while on leave. Retirement contributions are not made
during unpaid leave.
Employees returning from medical leave will provide certification that they are able
to resume work.
Upon expiration of the leave, employees can return either to their former position or
an equivalent position with equivalent benefits, pay, and conditions of employment.
However, the Company cannot guarantee job restoration to the former or an equivalent
position for employees who are among the highest paid 10% if the employee's absence
will cause substantial and grievous injury to the Company's operations.
Health insurance benefits can be continued during the leave under the same
conditions applicable to active employees. Employees will remit their portion of
insurance premiums monthly. The Company may elect to recover any health insurance
premiums it pays if the employee fails to return to work after the leave for a reason other
than (1) the continuation, recurrence, or onset of a serious health condition that would
entitle the employee to leave, or (2) other circumstances beyond the employee's control.
Family/medical leave may not be taken on an intermittent or part-time basis. The
Company will require an employee on leave to periodically report to his/her supervisor
of his/her status and intention to return to work.
Family leave may not be initiated after the twelve month period following the birth,
adoption, or placement of a foster child.
The Company reserves any and all rights and privileges granted to employers under
the laws mandating family and medical leave, even if not expressly set forth in this
policy.
Military Leave.

16. If you leave Panama Canal Elevator Parts to enter military service, you will, upon
release from the service, be considered to have been on military leave, provided you
apply for re employment within 90 days after discharge.
An unpaid leave of absence will be granted to an employee called to active training.
Available vacation time may be used in requesting a military leave of absence.
In Case of Accident.
An illness or injury on the job must be reported immediately to your supervisor. If the
injury or illness requires medical treatment, appropriate arrangements will be made. In
order to help prevent accidents, it is your duty to immediately report to your supervisor
any unsafe conditions you notice anywhere on the premises. Failure to report a
job-related injury is grounds for discipline.
Company Vehicles.
In some cases, employees will be assigned a company vehicle. That vehicle is not
to be used for personal business. If you take the vehicle home at night, you may use it
only to drive home and to drive to work in the morning. Any unauthorized use of the
vehicle is grounds for immediate discipline, up to and including discharge.
Moonlighting.
Moonlighting, either for a competitor or for yourself, in the construction business is
strictly forbidden by Panama Canal Elevator Parts, Inc. Moonlighting in non-HVAC jobs
is discouraged, but not forbidden.
Employees who violate this rule should keep in mind that they are risking legal liability,
as well as discharge. Unlicensed employees can be fined, and employees can be sued
individually by dissatisfied "customers."
WHAT WE EXPECT FROM YOU
Introduction to Standards of Conduct.
Obviously, whenever a large number of people work together, there must be
standards of conduct. It is impossible to define in detail every standard of conduct for
every circumstance, and the Company tries to keep rules to a minimum. During your
orientation, you were advised of some specific work rules affecting you, and we believe
that your common sense will guide you as to the proper thing to do in most cases.
Keep us up-to-date.
Up-to-date personal information is necessary for a number of reasons, including
ensuring the prompt and proper administration of your employee benefits. Therefore, it

17. is your responsibility to notify the Office immediately of any change of your address,
telephone number, marital status, number of dependents, or beneficiary designation, or
anything else that would affect your employee benefits or tax status.
Keep Confidential Information Confidential.
Any information concerning the business affairs of Panama Canal Elevator Parts,
Inc., its customers, employees, or personnel associated with the Company is
confidential and restricted. You may not reveal any information except under the
direction or approval of your supervisor. If you have any doubt, refer inquiries to your
supervisor or the Office.
Help Us Predict Our Needs.
Although we hope that no one will want to resign from employment with us, please
do us the courtesy of giving us at least two weeks advance notice if you intend to do so.
The failure to give us sufficient notice will result in the loss of any vacation pay that you
were eligible to receive. Before your final paycheck can be released, you must contact
the Office for an exit interview. All Company property, including keys, uniforms,
identification badges, etc., must be returned to the Office. Similarly, let us know as far
as possible in advance if you are going to be absent from work or will arrive late or need
to depart early. The Company has an answering service to record these calls between
5:00 p.m. and 7:00 a.m. At the very least, you must contact the answering service no
less than one hour prior to the scheduled beginning of your work day if you are going to
be absent or late on that day. Absences must be bona fide and reported daily, unless
other arrangements are made with your supervisor. Remember that this is your
responsibility and that asking another employee, friend, or relative to give this
notification is not sufficient, except under emergency conditions.
Major Offenses.
It is impossible to cover every standard of conduct for every circumstance, but there
are certain major offenses which could require an immediate penalty of two weeks
suspension without pay or discharge in the Company's discretion, without recourse to
the progressive discipline procedure described below. Major offenses could require an
immediate penalty of a two week suspension without pay or discharge in the Company's
discretion, without recourse to the progressive discipline procedure described below.
The following are major offenses:
Failure or refusal to carry out orders or instructions.
Unsatisfactory work performance.
Failure to fulfill the responsibilities of the job to an extent that might or does
cause injury to a person or substantial damage to or loss of product, machinery,
equipment, facilities or other property.

18. Chronic or habitual absenteeism or lateness, under the company's separate
attendance standards.
Violation of an established safety, fire prevention, health or plant security rule.
False, fraudulent or malicious statement or action involving relations with the
company, another employee, or a customer, or any action disloyal to the company.
Falsification of hours worked or company records and/or omission of information
requested on company records or documents.
Unauthorized use of, removal of, theft, or intentional damage to the property of
the company, an employee, an independent contractor, or a customer.
Threatened or actual physical violence or profane or abusive language.
Carrying any weapon on company premises without authorization from the
company.
Bringing onto company premises, having possession of, being under the
influence of, or consuming on company premises or while on company business, any
intoxicant.
Violation of the company's drug policy.
Gambling, disorderly, or immoral conduct while on company premises or
business.
Performing work or services for a competitor of the company.
Excessive garnishments, to the extent permitted by law, except that no
employee will be discharged because of garnishments for any one indebtedness.
Absence from work for two (2) consecutive scheduled work days without
notifying the company during the absence of an illness or accident preventing the
employee from working (as evidenced by written certification of a medical doctor if re
quested by the company), or other satisfactory reason for such absence, as determined
by the company.
Failure to return to work within the three (3) consecutive scheduled work days
after registered or certified mail notification of recall from layoff status by the company
without notifying the company during such three (3) day period of an illness or accident
preventing the employee from working (as evidenced by written certification of a
medical doctor if requested by the company); or a minimum of two (2) weeks
termination notice to another employer.

19. Failure to work for any reason for a period of three (3) months.
An arrest, the filing of a disorderly person or criminal complaint, or the return of
an indictment against an employee for any alleged wrongful activity may result in an
indefinite suspension without pay, subject to discharge depending on the particular
circumstances and the offense charged. (All employees are obligated to cooperate with
the company by notifying their supervisor of any arrest or charges filed involving them,
to provide and assist the company in obtaining all relevant information needed to enable
the company to consider the allegation, and to provide current status information on the
arrest or allegations as required by the company.
Violation of company policy on removing property from the premises.
If any employee becomes subject to discharge for a major offense or cumulative
minor offenses, such employee may request a meeting with the President. This request
must be made to the employee's supervisor at the time the employee is notified that he
is being discharged.
If such a request is made, the meeting will be held promptly. The employee
involved, his immediate supervisor, and the President shall be present at the meeting.
The employee will remain on suspension without pay, subject to discharge, until the
meeting and decision. A final decision on the employee's employment status will be
given to the employee not later than five working days after the meeting.
Progressive Discipline - Minor Offenses.
Our procedure for handling misconduct other than a major offense is set out below.
Step 1: A separate written WARNING shall be given for the violation of each
Company rule, policy, or practice.
Step 2: A written REPRIMAND shall be given to an employee for each
subsequent offense, other than a major offense, in violation of any Company rule, policy
or practice for which he has already received a written WARNING. REPRIMANDS for
violation of the same or different Company rules, policies and practices are cumulative
towards suspension and discharge.
Step 3: The THIRD REPRIMAND shall result in immediate suspension from
work for a period of three scheduled work days.
Step 4: The FOURTH REPRIMAND shall result in immediate suspension, subject to
discharge.

20. Progressive discipline is given for minor offenses such as lateness, absenteeism,
unsatisfactory work performance, careless operation of company equipment, and other
infractions that do not warrant immediate suspension or dismissal.
Copies of all warnings and reprimands shall be given to the employee involved and the
supervisor, and placed in the employee's personnel file. When an employee has worked
for a period of 12 consecutive months without receiving a reprimand or suspension,
warnings, reprimands, and suspensions received prior to the 12 month period will not be
counted for purposes of future discipline for minor offenses. Employees must sign all
written warnings and reprimands.
DRUG POLICY
The use of drugs, both on and off the premises, can seriously affect an employee's
performance. Moreover, drug use can endanger the safety of other employees and the
customers we serve. Therefore, the Company has adopted the following policy:
Employees may NOT possess, bring onto Company property, be under the
influence of, use, transfer, or attempt to sell any form of narcotic, depressant, stimulant,
or hallucinogen, the possession, use, transfer, or sale of which is prohibited by law. In
addition, employees must notify their supervisors if they are taking any prescription or
over-the-counter medication, whether or not the prescription or medication could impair
work performance. Violation of this policy is grounds for immediate dismissal.
Employees may be asked at any time during their employment to submit to a
urinalysis or blood test to screen for drug use. Normally, such a drug screen will be
requested where there is reasonable suspicion that the employee is using drugs.
Employees who refuse to submit to a drug screen will be discharged. If the results of the
test tend to show that the employee has used illegal drugs or otherwise violated the
Company's drug abuse policy, the employee will be subject to immediate dismissal.
The Company nevertheless sponsors an employee assistance program through which
employees may receive confidential counseling concerning substance abuse.
Employees are encouraged to use the program to help avoid the consequences of
violating the Company's drug abuse policy.
YOUR ATTENDANCE GUIDELINES
Policy.
It is the responsibility of all employees to meet the Company's standards of
attendance as outlined below. Failure to do so is proper cause for discipline, including
suspension, probation, and/or discharge. At the same time, it is the goal of the
Company to make every reasonable effort by means of this policy and procedure to
assist employees in the control and correction of the causes of their absenteeism.

21. Each employee is expected to be present at work on all scheduled work days, and
to report to work on time. If an employee is scheduled to work on a day "off," a holiday,
or during a vacation period, such day(s) will be considered as scheduled work days.
Absences in such situations will be counted towards disciplinary action.
Moreover, it is your obligation to notify your supervisor, as far as possible in
advance, whenever you will be late or absent, and to state the reason for such lateness
or absence. Chronic or excessive absenteeism and lateness will not be tolerated.
Finally, no absence is automatically "excused". The only distinction is between those
absences which are counted for disciplinary action and those which are not counted.
Absences which normally are not counted towards disciplinary action are: scheduled
days off, vacations, holidays, bereavement leave, jury duty, layoff for lack of work,
leaves of absence granted in advance under the provisions of this Handbook, and two
unpaid absences per year caused by illness.
All other absences are counted towards progressive discipline.
If an unreported incident of absence is of two or more scheduled work days'
duration, unless the employee was prevented from calling in for medical reasons, the
employee will be considered to have voluntarily quit and employment will be terminated
as of the last day worked.
Lateness.
An employee is late if he punches in or reports for work one or more minutes after
his scheduled reporting time, whether or not he is paid for the time.
Attendance Records.
Records of employee incidents of absenteeism and lateness shall be prepared and
maintained on a monthly basis, in accordance with this policy. The Company's
personnel records shall contain the reasons/causes for an employee's absence or
lateness and summaries of all discussions with the employee about the employee's
attendance. Copies of all disciplinary actions issued under this policy shall be given to
the employee involved and the Office, and shall also be filed in the employee's
personnel record.
Attendance/Lateness Incentive Program.
Employees who are neither late nor absent for a period of four months established by
the Company (and who have no warning or reprimands for absenteeism or lateness for
the previous twelve months) shall be given an incentive bonus established by the
Company.
HEALTH AND SAFETY PRACTICES

22. The management of Panama Canal Elevator Parts is vitally interested in the health and
safety of each employee. It is a continuing, sincere desire of the Company to implement
positive and effective safety programs with the objective that every unsafe act, practice,
or condition is detected and corrected in a timely manner.
NO SOLICITATION
Solicitation by non-employees on Company property is strictly prohibited at all times.
Solicitation by employees during working time is prohibited.
Distribution of literature in working areas is not permitted at any time.
OUR RESPONSIBILITY
All management functions and responsibilities and prerogatives entrusted to and
conferred upon employers inherently or by law are retained and vested exclusively with
Panama Canal Elevator Parts, Inc., including, but not limited to, the right to exercise our
judgment to establish and administer policies, practices and procedures and change
them, and to take whatever action is necessary in our judgment to operate the
Company, direct and discipline our workforce and increase its efficiency, to set the
hours and shifts to be worked, and to determine the standards of productivity and
services to be rendered. The failure in a particular way shall not be considered a waiver
of the Company's right to exercise such prerogative or function or preclude it from
exercising that prerogative or function in some other way.
FIRST DAY CHECKLIST

23. Name:
Job Title:
Supervisor's Name:
Starting Time:
Quitting Time:
Lunch Hour:
Starting Rate:
Date Probationary Period Ends:
Phone Numbers to Call if Late or Sick:
RECEIPT FOR THE PANAMA

24. CANAL ELEVATOR PARTS, INC. HANDBOOK
__________________________________________________________
Last Name
First Name
Middle Initial
(please print)
I have received a copy of the Panama Canal Elevator Parts, Inc., Handbook and will
read it carefully. I agree to abide by all of its rules, policies, terms, and conditions. If I
have any questions regarding any of the Employee Handbook's provisions, I will consult
my supervisor. I also understand and agree that my employment with the Company is
terminable at will so that either the Company or myself are free to choose to end our
work relationship, and that nothing in this Employee Handbook in any way creates an
express or implied contract of employment between the Company and myself.
___________________ ______________________________ Date Employee's
Signature _______________ Employee Number
Prepared by:
Kollman & Saucier, P.A.
20 South Charles Street
Baltimore, MD 21201
(410) 727-4300