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1 SACRED HEART NATIVITY SCHOOL EMPLOYEE BENEFITS Sacred Heart Nativity School ("SHNS") is interested in the health and well being of you and your family. To that extent, we offer a competitive package of employee benefit programs to full-time regular employees. Comprehensive details of each of these programs are available through the Human Resources and the applicable insurance companies. The information below is intended to provide you with a brief summary and a general understanding of these benefit programs. Please understand that benefits eligibility is dependent upon a variety of factors, and the existence of these employee benefits, in and of themselves, does not mean that an employee will be employed for the requisite length of time necessary to qualify for them. In addition, some benefit programs require contributions from the employee, and some are paid for by SHNS. For more information about these employee benefit programs, please contact your manager or Human Resources. 1 501 LEGISLATED BENEFITS All employees are covered as required by law for legislated benefit programs, including Worker's Compensation, Federal Social Security, California State Disability Benefits Insurance and Unemployment Insurance. This section is intended as a summary of these statutory benefits. The actual benefits provided are those specified by the applicable legislation and/or policies of insurance carried by SHNS. Legislated benefits may be changed from time to time by the state or federal governments. 501.1 State Unemployment Insurance If you become unemployed, you may be eligible for unemployment compensation, under certain conditions, for a limited period of time from the State of California. Please see Human Resources for further information. To determine if you are eligible, you should contact and apply for Unemployment Insurance benefits through the local Employment Development Department (EDD) office. 501.2 State Disability Insurance In California, employees are covered by State Disability Insurance (deductions are listed under "SDI" on your paycheck stub). Disability insurance may assist you against wage loss caused by non- occupational illness or injury. Please refer to the "State Disability Pamphlet" for further information. 1 Due to the unique relationship of clergy and religious personnel to the Church as an employer, the employee benefits outlined herein may not apply to them in some cases.

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Page 1: SHNS Handbook

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SACRED HEART NATIVITY SCHOOL EMPLOYEE BENEFITS

Sacred Heart Nativity School ("SHNS") is interested in the health and wellbeing of you and your family. To that extent, we offer a competitive package ofemployee benefit programs to full-time regular employees.

Comprehensive details of each of these programs are available through theHuman Resources and the applicable insurance companies. The information below isintended to provide you with a brief summary and a general understanding of thesebenefit programs.

Please understand that benefits eligibility is dependent upon a variety of factors, and the existence of these employee benefits, in and of themselves, does not mean that an employee will be employed for the requisite length of time necessary to qualify for them. In addition, some benefit programs require contributions from the employee, and some are paid for by SHNS. For more information about these employee benefit programs, please contact your manager or Human Resources.1

501 LEGISLATED BENEFITS

All employees are covered as required by law for legislated benefit programs, including Worker's Compensation, Federal Social Security, California State Disability Benefits Insurance and Unemployment Insurance. This section is intended as a summary of these statutory benefits. The actual benefits provided are those specified by the applicable legislation and/or policies of insurance carried by SHNS. Legislated benefits may be changed from time to time by the state or federal governments.

501.1 State Unemployment Insurance

If you become unemployed, you may be eligible for unemployment compensation, under certain conditions, for a limited period of time from the State of California. Please see Human Resources for further information. To determine if you are eligible, you should contact and apply for Unemployment Insurance benefits through the local Employment Development Department (EDD) office.

501.2 State Disability Insurance

In California, employees are covered by State Disability Insurance(deductions are listed under "SDI" on your paycheck stub). Disability insurance mayassist you against wage loss caused by non-occupational illness or injury. Pleaserefer to the "State Disability Pamphlet" for further information.

1 Due to the unique relationship of clergy and religious personnel to the Church as an

employer, the employee benefits outlined herein may not apply to them in some cases.

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501.3 Workers' Compensation Insurance

SHNS provides a comprehensive workers' compensation insurance program atno cost to employees. This program covers any injury or illness sustained in thecourse of employment. Workers/ compensation benefits help pay for employeetreatment and part of any income the employee may lose while recovering.California Law prescribes specific amounts and each case is handled individually. Tobe assured of maximum coverage, it is important that work-related accidents arereported immediately and claims filed promptly. If an employee incurs a workrelated injury requiring a medical examination or treatment the employee will bereferred to SHNS/s medical provider, unless prior to any work-related injury, SHNSreceives a written notice from the employee that the employee wishes to be seen byhis or her own physician. If the employee does not designate a physician, SHNS 1S medical provider will treat the employee.

California law requires that we notify our workers/ compensation carrier of any concerns of false, exaggerated, or fraudulent claims. Any person who makes or causes to be made any knowingly false, exaggerated, or fraudulent statement or misrepresentation for the purpose of obtaining or denying of workers' compensation benefits is guilty of a felony.

Neither SHNS nor its insurance carrier will be liable for the payment ofworkers' compensation benefits for injuries that occur during an employee'svoluntary participation in any off-duty recreational, social, or athletic activitysponsored by SHNS.

501.4 Social Security (Federal Insurance Compensation Act)

SHNS employees are covered under the Social Security Program ("FICA").There are no exemptions from FICA available. The wage deduction for SocialSecurity taxes is matched by SHNS, and the total contribution by the employee andSHNS is credited to Social Security benefits which may be available when theemployee is eligible to retire. Disability and survivor's benefits are also financedthrough Social Security deductions. Individual benefit amounts in all cases varydepending on the earnings covered by Social Security.

502 THE SHNS COMPREHENSIVE BENEFIT PROGRAM

Regular employees who work at least 20 hours per week are eligible to participate in the SHNS Comprehensive Benefit Program. The SHNS Comprehensive Benefit Program is an unbundled program consisting of several insurance plans. The components of the program include medical, dental and vision insurance plans.

An employee may decline coverage in any of these plans, but no monetary compensation is provided for waiving the coverage. An employee who has waived the medical, dental or vision coverage must wait until the open enrollment period toelect coverage in the future.

All eligible employees must sign up for the comprehensive benefit programwithin 30 days from the date of hire. Coverage begins on the first day of the monthfollowing the date of hire. For example, if an employee begins work on June 17,coverage begins July 1. Likewise, coverage terminates on the last day of the month

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during which employment ended. For example, if the employee terminates employment on June 17, the employee's insurance coverage ends on June 30.

Employees may change their health insurance plan only during the openenrollment period, unless a HIPAA special enrollment event occurs. Please refer tothe Summary Plan Description for more information regarding "HIPAA specialenrollment periods." The open enrollment period occurs once every calendar year.Changes become effective July 1 of that year.

502.1 Medicai/DentaiNision Plans

SHNS offers a package containing medical, dental, and vision insurance coverage to eligible employees at the end of applicable service requirements. A general overview, including the respective insurance plans and the employee's cost for these benefits, is provided in our new hire orientation. Details about these plans are provided in the Summary Plan Descriptions. Please see Human Resources if you have questions and to ensure you have a copy of the respective Summary Plan Descriptions.

502.2 Health Coverage Continuation

When your employment with SHNS ends, your insurance coverage will end onthe last day of the month your employment ended. However, you may be eligible toelect continuation of such coverage on a self-pay basis under the ConsolidatedOmnibus Budget Reconciliation Act (COBRA).

The Federal Consolidated Omnibus Budget Reconciliation Act (COBRA) gives employees and their qualified beneficiaries the opportunity to continue health insurance coverage under SHNS's health plan when a "qualifying event" would normally result in the loss of eligibility. Some common qualifying events are resignation, termination of employment, or death of an employee; a reduction in an employee's hours or a leave of absence; an employee's divorce or legal separation; and a dependent child no longer meeting eligibility requirements.

Under COBRA, the employee or beneficiary pays the full cost of coverage atSHNS's group rate plus an administration fee. SHNS provides each eligible employeewith a written notice describing rights granted under COBRA when the employeebecomes eligible for coverage under SHNS's health insurance plan. The noticecontains important information about the employee's rights and obligations.

Please contact the Human Resources Department for more information orquestions about health coverage continuation.

502.3 Pension Plan

SHNS has a pension plan available for all eligible employees of SHNS. Pleasesee the Human Resources Department if you have questions and to ensure you havea copy of the Summary Plan Description.

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504 PAID ABSENCE BENEFITS

504.1 Holidays

SHNS paid holidays are set yearly and sent by memo to all employees. Thesenormally include:

Holiday* New Years Day

Martin Luther King, Jr. DayPresident's DayCesar Chavez DayGood Friday Memorial Day

* Independence DayLabor Day Columbus Day

*Veterans DayThanksgivingDay after ThanksgivingChristmas Eve

* Christmas DayChristmas Break

Date ObservedJanuary 13rd Monday in January3rd Monday in FebruaryMarch 31Friday before EasterLast Monday in MayJuly 41st Monday in September2nd Monday in OctoberNovember 114th Thursday in November4th Friday in NovemberDecember 24December 25Work days between Christmas &New Year Day

* Designated holidays which fall on a Saturday will be observed on the precedingFriday; and

Designated holidays which fall on a Sunday will be observed on the followingMonday.

All regular, full-time employees are eligible for paid holiday time. Part-timeand minimum part-time employees whose normal work day falls on a designatedholiday will have the day off without loss of pay and will be paid for the number ofhours they normally work.

On occasion, a department may have deadlines or activities that wouldrequire staff members to work on an established holiday. For working on adesignated holiday, non-exempt employees are paid overtime (double-time) orreceive double compensatory time off instead of receiving the holiday off.

504.2 Vacation

New employees begin to accrue vacation time upon date of hire. The amountof vacation time accrued for full-time employees are determined by years ofemployment. Annual paid vacation time for full-time employees is computed asfollows:

YEARS1 - 5 years6 - 10 years

VACATION10 days (.83 days per mo.)15 days (1.25 days per mo.)

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11 or more years 20 days (1.67 days per mo.)

Part-time and mm1mum part-time employees accrue vacation time inproportion to the amount of time per week that they regularly work, (e.g., a regular20-hour per week employee would accrue vacation time at a rate 53% of thatreceived by a full time employee, a 30-hour per week employee would accruevacation at a rate of 80% of that of a full time employee, etc.).

The time of vacation should be arranged between the employee and thedepartment head as far in advance as possible in order that the employee and thesupervisor can make any necessary plans.

The maximum vacation an employee may accrue is the amount of his or herannual vacation (as outlined above). Employees have one year from the accrual ofvacation hours to use their vacation hours. However, at the written request of theemployee and with department head approval, an employee may accrue up to amaximum of five additional days of vacation. This request must be made inadvance. Such deferral of vacation time is an exception to diocesan policy and willbe granted only in extenuating circumstances. Written notification of such deferredvacation time is to be submitted by the department head to the Personnel Office forinclusion in the employee's file. No employee shall be allowed to defer vacation fortwo consecutive years or on a regular basis.

Employees may receive an accounting of their vacation accrual balance bycontacting the Personnel Office. Employees will be notified when they have reachedtheir maximum vacation balance and are no longer accruing vacation hours.

Employees may not take vacation before it is accrued.

Part-Year Employees - Employees hired for part-year programs are expected to takeearned vacation during the months the program is not in operation. Non-exemptemployees should receive compensation for the number of vacation hours earned inaddition to their compensation for the number of hours actually worked. Exemptemployees' annual salaries should include vacation pay as earned. Refer to theexamples below:

Non-Exempt Employee• John works 10 months (from August 15th to June 15th) in the catechetical

program.• As a new full-time employee, he earns the equivalent of 2 weeks vacation or 8.7

days per year.• His vacation is calculated by taking into account that full-time employees who

have worked for less than five years earn vacation at a rate of .83 days permonth (10 days divided by 12 months equals .83 days per month).

• Because John works only 10 months out of the year and because he continues to earn vacation while he is on vacation, he will earn a total of 8.7 days per year (.83 x 10 Vz months).

• As a non-exempt employee, John earns $10.00 per hour for a 7.5 hour day.John's daily rate of pay is $75.00 per day.

• The vacation pay due to John is calculated by taking his daily rate of $75.00 andmultiplying it by 8.7 vacation days he earns per year for a total of $652.50 tocover the vacation days he will take during the summer.

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• This amount can be paid to John in a separate check or calculated into the semimonthly or monthly paychecks he receives.

Exempt Employee• Fred works 10 months (from August 15th to June 15th) as Youth Director of a

parish.• As a full-time, exempt employee for over 10 years, Fred earns the equivalent of 4

weeks vacation or 19 days per year.• 20 days (4 weeks) divided by 12 months equals 1.67 days per month. Multiply

1.67 by 11 months - 10 months worked and 1 month of vacation. This equals18.37 days, rounded up to the next whole day because Fred is an exempt employee and cannot be paid for partial days.

• Fred's salary for 10 months as Youth Director is $35,000.• To calculate his vacation pay,

1. We first find Fred's weekly rate by dividing his salary by 43.33 (the number ofweeks in 10 months). Fred's weekly salary is $807.75.

2. We divide his weekly salary by 5 days to determine his daily salary rate of$161.55.

3. Fred's vacation pay is calculated by multiplying his daily rate of $161.55 by the 19 days of vacation he earns per year for a total of $3069.45.

4. This amount should be added to Fred's salary to give him a total annual salary of $38,069.45. ($35,000 + $3,069.45).

NOTE: It is imperative that employee classification, part-time and/or part-yearstatus be clearly expressed at the time of hire. Adherence to this practice willforestall potential problems with overtime or compensatory time, benefits and/orrequests for reclassification. It is especially important for part-year exemptemployees to understand that vacation pay has been calculated into the annualsalary amount.

504.3 Sick Time

Employees are entitled to time off for short periods of illness when they areunable to work. It is the responsibility of employees to telephone their supervisorsor Human Resources prior to their regularly assigned time for beginning work. Paidsick time may also be used for medical and dental appointments which employeesare unable to schedule outside of work hours, or if an immediate family member isill.

Sick time is accumulated at 10 days per year (.83 days per month) from themonth of hire for full-time employees. Part-time and minimum part-time employeesaccrue sick time in proportion to the amount of time per week that they ordinarilywork.

All unused sick time can be accumulated up to a maximum of 60 workdays.However, employees will not be paid for unused sick time benefits upon termination.

SHNS reserves the right to request any employee, upon returning to workfollowing an illness, to present a physician's statement indicating that the employeeis physically able to work without danger to themselves or others.

Time off due to sickness or injury, even if compensated, will not beconsidered hours worked for overtime purposes.

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Employees may receive an accounting of their sick time balance by contacting the Human Resources Department.

504.4 KIN Care

SHNS complies with the requirements of California law, which enables employees to use up to one-half of their yearly Sick Leave accrual to attend to a child, parent, spouse, domestic partner, or domestic partner's child who is ill. Leave for this purpose may not be taken until you have accrued Sick Leave.

"KIN" is defined as the following :

For purposes of Sick Leave use, a "child" is defined as a biological, foster, or adopted child; stepchild; or a legal ward. A "child" also may be someone for whom you have accepted the duties and responsibilities of raising, even if heor she is not your legal child.

• A "parent" is your biological, foster, or adoptive parent; stepparent; or legal guardian.

A "spouse" is your legal spouse according to the laws of California, which donot recognize "common law" spouses (a union that has not been certified by acivil or religious ceremony).

• A "domestic partner" is another adult with whom you have chosen to shareyour life in an intimate and committed relationship of mutual caring, and withwhom you have filed a Declaration of Domestic Partnership with the CaliforniaSecretary of State.

A "domestic partner's child" is the biological, foster or adopted child,stepchild, or legal ward of your domestic partner. A "domestic partner's child"also may be someone for whom your domestic partner has accepted theduties and responsibilities of raising, even if he or she is not your domesticpartner's legal child.

504.5 Personal Time

Personal time refers to time off for personal emergencies or unexpected events, not related to illness or vacation; for example, a broken water pipe at home that requires immediate attention.

Normally, an employee will not exceed three personal days in a year. Personal time off is not to be used as vacation time.

Personal time may be authorized by the supervisor based on individual situations and, if granted, will be charged against cumulative sick time.

504.6 Bereavement Time

SHNS recognizes the need to take time off during times of bereavement. Thispolicy has been established to guide the issuance of time off and how to compensateyou for time off due to a death in your family, or family emergencies.

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When a death or family emergency occurs, you may request to take time offfor the purpose of arranging or attending services. SHNS will pay you up to 10 daysor up to a maximum of 24 working hours for non-exempt employees forbereavement. You may also use vacation or sick leave hours for any approved timeoff beyond the 10 days.

504.7 Jury and Witness Duty

SHNS encourages employees to fulfill their civic responsibilities by serving jury duty when required and appear in court for witness duty when subpoenaed to do so. Full time, non-exempt employees are eligible to receive pay (as many hours as they are gone for jury or witness duty multiplied by their hourly rate, up to a maximum of 8 hours) for a maximum of 30 workdays within a two-year period.

Exempt employees are paid their full salary for any week they are on jury orwitness duty if they also perform any work (including checking voice or e-mail)during that particular week. If you are an exempt employee and you are unable toperform work during a pay period, then you will be paid for a maximum of 30workdays within a two-year period.

You are expected to notify Human Resources as soon as you receive noticethat you have been called for jury or witness duty and you need to submit proof ofattendance. If you are excused from jury or witness duty during your regularworking hours, you are expected to return to work for the balance of your workday.In addition, the employee is expected to report for work whenever the court schedulepermits.

Time spent on jury or witness duty is not included as time worked forovertime purposes. Accrual for vacation will not be affected during jury or witnessduty leave. Health insurance will remain in effect and unchanged for the full term ofthe jury or witness duty absence. If employees wish to use accrued vacation (inorder to help offset any unpaid time off during a jury or witness duty absence) theymay request to do so via the request procedures outlined in the vacation policy.

Either SHNS or the employee may request an excuse from jury orwitness duty if, in SHNS's judgment, the employee's absence would createserious operational difficulties.

504.8 Job Training Time

Sometimes it is beneficial for the employer to allow or require an employee to take courses or training away from the office. Such time is to be arranged with the department head and, depending on the nature and duration of the educational program, may either be part of the paid workday or, by special arrangement, an unpaid personal leave of absence. (See Section 505.4) Such arrangements must always be in writing and agreed to before the leave actually begins.

504.9 Staff Development/Education

To encourage employees to continue professional development, SHNS mayprovide time off and/or reimburse costs for programs, conferences, seminars,

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institutes, and courses that enhance job-related skills. Courses must be successfullycompleted in order to qualify for reimbursement.

Time off and reimbursement are subject to the prior approval of thedepartment head and budgetary resources.

505 UNPAID ABSENCE BENEFITS

As explained in the following sections, leaves of absence may be granted toregular employees in instances where unusual or unavoidable circumstances requireprolonged absence.

Any employee requesting a leave of absence should have good faith intent to return to work. SHNS will consider any employee on leave to have resigned if the employee: (1) does not accept a position offered by SHNS upon expiration of the leave; (2) fails to report for work on the first scheduled work day after theauthorized leave has expired, unless an extension has been requested and approved;or (3) accepts other employment while on leave without the approval of SHNS management. SHNS may also terminate the employment of any employee who falsifies any information in connection with requesting or obtaining a leave.

A leave of absence may be any of the following types:

505.1 Medical Leave of Absence

SHNS provides medical leaves of absence without pay to eligible employees whoare temporarily unable to work due to a serious health condition or disability. Inthese situations, eligible employees may request a formal medical leave of absence.SHNS reserves the right to deny medical leave requests.

Employees are expected to request such leaves as far in advance as possible.The procedure for medical leave is as follows:

a. Employees submit a completed Leave of Absence Form ("L.O.A.") to HumanResources. In addition, a physician's statement estimating theperiod of disability is required prior to granting (or extending) atemporary disability/medical leave.

The physician's statement needs to state that the employee is disabled by amedical condition, such that he or she cannot perform the essential functionsof his or her job, or cannot perform them without undue risk.

b. Your manager will approve or deny the request. Except where granting a leave is required by law, approval is at the sole discretion of SHNS.

Generally, the maximum period that a medical leave is granted for is 90 days.Extensions may be granted provided that the employee applies for this extension inwriting and provides SHNS with a doctor's certification. The doctor's certificationmust state that the employee is unable to return to his or her previous position for aspecified period because of the continuing disability. Extensions are decided on acase-by-case basis at the sole discretion of SHNS and generally an extension doesnot exceed a total of 4 months.

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During a medical leave, employees do not continue to receive their regularpaycheck as if they were still working. They will, however, be eligible to participatein the State Disability program while they are certified as disabled. In addition,employees may use available vacation and/sick leave hours to integrate withdisability benefits.

The health and welfare insurance programs will remain in effect for up to 3months from the time your leave begins. When that period ends, you mayvoluntarily continue health insurance coverage by making arrangements to pay thefull monthly premium of all insured in advance - i.e., via COBRA.

During a medical leave of absence, vacation time accrues commensurate withthe amount of pay that you actually receive from SHNS.

A leave of absence extending for a period in excess of one year will beconsidered a break in service for the purposes of determining pension rights. Aleave of absence may have an adverse effect on the amount of an employee'spension benefit. Please refer to the Summary Plan Description of the Pension Planfor further information.

Prior to returning to work, you must provide your manager with a physician'sstatement that certifies that you are able to return to work. Any work restrictionswill be considered on a case-by-case basis.

If deemed appropriate, SHNS may attempt to reinstate employees to theiroriginal positions or comparable ones at the conclusion of medical leave. There maybe occasions where SHNS may not be able to reinstate employees returning fromsuch a leave at all, or SHNS may have to reinstate employees under differentemployment conditions (e.g., different position, hours, or pay). Such decisions aremade at the sole discretion of SHNS on a case-by-case basis.

If an employee fails to return to work on the agreed upon return date, SHNSwill assume that the employee has resigned.

Please see the Human Resources Department so they can help you furtherunderstand and coordinate details regarding your compensation and benefits andbenefits during a medical leave, and reinstatement issues.

505.2 Pregnancy Disability Leave of Absence

SHNS provides up to a total of 4 months of pregnancy disability leave for the period a woman is actually disabled by pregnancy, childbirth or a related medical condition. A woman requesting leave must provide documentation from a licensed physician or other licensed health care practitioner that the employee is, or will be, disabled by pregnancy, childbirth or a related medical condition such that she cannot perform the essential duties of her job, or cannot perform them without undue risk to herself, others, or the pregnancy.

The employee requesting leave should give SHNS reasonable notice of thedate on which the leave will commence and the estimated duration of the leave.

Pregnancy disability leave may be taken only when the employee provides

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SHNS with a doctor's certification of disability. The doctor's certification must statethat the employee is unable to return to her previous position for a specified periodbecause of the continuing disability.

Employees actually disabled by pregnancy, childbirth, or a related medical condition may be transferred to a less hazardous or strenuous position for the duration of the pregnancy provided that: (1) the employee requests the transfer; (2) the employee's request is based on the advice of her physician or licensed health care practitioner; (3) such transfer can be reasonably accommodated. SHNS does not create additional employment which would not otherwise be created, nor does it discharge other employees, or promote other employees who are not qualified to perform a job in order to accommodate such requests.

During a pregnancy disability leave employees do not continue to receivetheir regular paycheck as if they were still working. They will, however, be eligible toparticipate in the State Disability program while they are certified as disabled. Inaddition, employees may use available vacation and/or sick leave hours to integratewith disability benefits.

The health and welfare insurance programs will remain in effect for up to 3 months from the time the employee's leave begins. When that period ends, the employee may voluntarily continue health insurance coverage by making arrangements to pay the full monthly premium of all insured in advance - i.e., via COBRA.

During a pregnancy disability leave of absence, vacation time accruescommensurate with the amount of pay that the employee actually receive fromSHNS.

Following expiration of the leave, the employee will be returned to her originalposition, unless either: (1) the job ceases to exist because of legitimate reasonsunrelated to the employee's pregnancy disability leave, or (2) each means ofpreserving the job for the employee would substantially undermine Dividend Home'sability to operate its business safely and efficiently.

If for the above reasons, SHNS is unable to return the employee to heroriginal job, SHNS will provide the employee with a comparable job, unless : (1)there is no comparable position available, or (2) filling the position with the returningemployee would substantially undermine the Company's ability to operate itsbusiness safely or efficiently.

SHNS may require written verification from the employee's doctor or otherlicensed health care practitioner that the employee's disability has ceased beforepermitting the employee to return to work.

A leave of absence extending for a period in excess of one year will beconsidered a break in service for the purposes of determining pension rights. Aleave of absence may have an adverse effect on the amount of an employee'spension benefit. Please refer to the Summary Plan Description of the Pension Planfor further information.

SHNS does not discriminate against or otherwise punish any individualbecause this person has exercised her legal right to pregnancy disability leave.

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Please see Human Resources so they can help you further understand andcoordinate details regarding your compensation and benefits and benefits during apregnancy disability leave, and reinstatement issues.

505.3 Family Temporary Disability Insurance

New legislation was enacted in 2004 (Senate Bill 1661) to extend disabilitycompensation to cover employees who take time off of work to care for a seriously illchild, spouse, parent, or domestic partner, or to bond with a new child. Senate Bill1661 established the Paid Family Leave insurance program, also known as FamilyTemporary Disability Insurance program, and it is administered by California's StateDisability Insurance (SDI) program. It covers employees who are covered by SDIora voluntary plan in lieu of SDIand have earned at least $300 from which deductionswere withheld.

Medical information that supports the employee's claim must be providedwhich supports the claim that the care recipient is in need of the employee's care orprovide documentation to support a claim for bonding with a new child.

There is a 7-day waiting period before benefits begin.

Paid Family Leave offers up to 6 weeks of benefits in a 12-month period andprovides approximately 55% of lost wages up to a maximum of $728 per week. Themaximum rate will go up incrementally each year as determined by the State ofCalifornia.

An employee would be required to use up to two weeks of accrued time offprior to receiving PFL benefits.

Payroll deductions begin January 1, 2004 and benefits begin July 1, 2004. This plan is administered by the California Employment Development Department (www.edd.ca.gov/eddmail.htm ) .

An employee may obtain a DE2511 form from the Human Resources Managerif he or she plans on requesting a Paid Family Leave.

Please see Human Resources so they can help you further understand andcoordinate details regarding temporary disability compensation.

505.4 Personal Leaves of Absence

Employees who have been continuously employed by SHNS for at least oneyear are eligible to request a personal leave of absence without pay. PersonalLeaves of Absence cover those employees or situations not covered under any otherleave of absence program and are only granted in rare and extenuatingcircumstances. Requests for personal leaves of absence or an extension of anexisting leave of absence must be submitted in writing. Each request will beconsidered on an individual case basis and will be evaluated based on a number offactors, including anticipated workload requirements and staffing considerationsduring the proposed period of absence. Personal leaves must be approved in writingby the department head and Personnel Office before the leave is taken.

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When a personal leave ends, every reasonable effort will be made to returnthe employee to the same position, if it is available, or to a similar available positionfor which the employee is qualified. However, SHNS cannot guarantee reinstatementin all cases.

If an employee fails to report to work promptly at the expiration of theapproved leave period, SHNS will assume the employee has resigned.

505.5 Military Leaves of Absence

A military leave of absence will be granted to employees who are absent fromwork because of service in the U.S. uniformed services in accordance with theUniformed Services Employment and Reemployment Rights Act ("USERRA").Advance notice of military service is required, unless military necessity prevents suchnotice or it is otherwise impossible or unreasonable.

Please contact the Human Resources Department for more information orquestions about military leaves of absence.

505.6 Voting Time Off

SHNS respects the rights of employees wishing to vote in Federal and Statewide elections and encourages employees to fulfill their civic responsibilities by participating in such elections. Generally, employees are able to find time to vote either before or after their regular work schedule. If employees do not have sufficient time outside of working hours to vote in a federal or statewide election, they may, without loss of pay, take up to 2 hours of working time to vote.

Employees need to give their manager a minimum of 3 working days notice inorder to arrange a voting time. Advance notice is required so that the necessarytime off can be scheduled at the beginning or end of the work shift, whicheverprovides the least disruption to the normal work schedule.

Employees must submit a voter's receipt on the first working day followingthe election to qualify for time off with pay.

505.7 Attending to a School Suspension or Scholastic Activity

If it becomes necessary for an employee who is the parent or guardian ofa child to attend the child's school to discuss possible suspension, the employeeshould alert his or her supervisor or the Human Resources Department as soon aspossible so that alternative arrangements may be made. Pursuant to California LaborCode §230.7, no discriminatory action will be taken against the employee for taking time offfor this purpose.

Employees are encouraged to participate in the school activities of theirchild(ren). The absence is subject to the following provisions:

1. Parents, guardians, or grandparents having custody of 1 or morechildren in kindergarten or grades 1 through 12, inclusive, or in alicensed child day care program, may take time off for a school activity.

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2. The time off for school activity participation cannot exceed 8 hours inany calendar month1 or a total of 40 hours each school year.

3. Employees must provide as much advanced written notice as possible to thePresident.

4. If both parents are employed by SHNS, the first employee to requestsuch leave will receive the time off. The other parent will receive thetime off only if leave is approved in writing by the employee'ssupervisor.

5. Employees should use accrued vacation in order to receivecompensation for this time off. Employees who do not have vacationavailable will take the time off without pay.

6. Employees should provide their supervisor ·or the Human ResourcesDepartment with documentation from the school that indicates that theemployee participated in a school activity on the day of the absence for thatpurpose. If no such documentation is received1 the absence will be treated asunauthorized.

505.8 Emergency Duty and Volunteer Training

An employee shall receive no discipline for taking unpaid time off to performemergency duty as a volunteer firefighter/ reserve peace officer, or emergencyrescue personnel. Employees will be granted an unpaid temporary leaves of absenceup to a total of 14 days per calendar year to engage in fire or law enforcementtraining/ subject to the supervisor's approval of the dates. If you need to take theunpaid time off 1 inform your manager and the Human Resources Department as soonas possible.

505.9 Domestic Violence & Sexual Assault Victims

An employee shall receive no discipline for taking time off to help ensure hisor her health/ safety, or welfare or that of his or her child by obtaining a temporaryrestraining order or other court assistance.

Additionally, an employee shall receive no discipline for taking unpaid time offto: seek medical attention for injuries; obtain services from a domestic violenceshelter; obtain psychological counseling; or participating in safety planning.