Employee Relations Benefits

LONG OF CHATTANOOGA

EMPLOYEE HANDBOOK

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Long of Chattanooga

Table of Contents

Welcome 3

Purpose of the handbook 4

Our history 3

Purpose of the handbook 4

Philosophy 5

Customer and Employee Relations Policy 5

Communications Policy 6

Introductory Period 8

Employee Status 8

Benefits 9

Policies and Procedures 15

Basic Work Rules 15

Solicitation/Distribution Policy 15

Cell Phone Policy 18

Absenteeism, Tardiness and Notification Policy 19

Drug Free Workplace Policy 20

Smoking, Tobacco and Vaping Policy 27

Harassment and Discrimination Policy 29

Workplace Violence Policy 33

Legal Requirements 36

Hours, Overtime and Timekeeping 37

Operation of Customer Vehicles 38

Dealership Property and Vehicles 38

Safety 39

Workplace Chemicals 39

Parking 39

Keys 40

Personal Appearance 40

Business Records 40

Confidential Information 41

Housekeeping 41

Other Employment 42

Changes in Personnel Records 42

Notice of Resignation 42

Exit Interview 42

Sum It Up 43

PURPOSE OF THE HANDBOOK

The employee Handbook is designed to acquaint you with Long of Chattanooga and to give you a ready reference to answer most of your questions regarding your employment with us. We intend for this Handbook to offer two-way communication: what the benefits of employment are, and what is expected from you. The contents of the Handbook, however, constitute only a summary of the employee benefits, personnel policies, and employment regulations in effect at the time of publication. This handbook should not be construed as creating an “employment contract” or to create other contractual rights of any nature. In the case of insurance, the current insurance documents are controlling.

Although the Dealership intends that benefits, policies and regulations outlined in this Handbook will generally remain in effect, it reserves the right at any time to amend, curtail or terminate completely, employee benefits offered or to otherwise revise the policies and regulations outlined in this Handbook.

WELCOME

Starting a new job is never easy. Adjusting to the new faces, unfamiliar surroundings and the unique demands of your new position can be difficult. We recognize this and we are most eager to help you through these first days.

Inside this handbook you will find a lot of helpful material. It should answer most of your questions and give you a good idea of what will be expected of you and what you can expect from Long of Chattanooga.

You should keep this Handbook handy as a guide and ready reference. If you have questions as you read through this Handbook, please do not hesitate to discuss them with your supervisor. Your supervisor is a very important source of information and will be more than glad to assist you.

Experience has shown that there are a few fundamental principles that will be of help to you:

Be at work on time.

Learn your job and perform it thoroughly.

Perform your job safely, conforming to all safety rules, policies, and procedures.

Be dependable and reliable.

Do not hesitate to ask questions.

Be pleasant, respectful, and friendly to your co-workers.

In this spirit, we welcome you to Long of Chattanooga.

OUR HISTORY

Long of Chattanooga first opened its doors in 1959 under the name Andy Trotter Pontiac when Andy Trotter bought the dealership. Previously, Mr. Trotter served in the Army during World War II. He started and ran a successful dealership in Maryville, Tennessee, and owned, with his brother, and Amos and Andy Buick Dealership in Chattanooga.

Nelson Long joined the dealership and become President of Andy Trotter Pontiac in December of 1975. Prior to that time, Mr. Long earned a Master’s Degree and worked at several positions in a dealership. These positions included the New Car Prep Department, Sales, and Sales management. In 1990, the dealership name was changed to Long Pontiac Company.

Nelson Long, working together with some of the finest automobile people in Chattanooga, has year after year continued to grow and build. Long Pontiac has successfully weathered the downward cycles of the economy and has taken advantage of every opportunity in the good times. The Dealership consistently wins sales contests and has ranked among the very highest in the nation for customer satisfaction.

Our success in the future depends almost wholly upon our ability to maintain that high level of customer satisfaction. To succeed, to survive in the market place, we must do a better job than anyone else of satisfying the wants and needs of our customers.

PHILOSOPHY

OUR CUSTOMER RELATIONS PHILOSOPHY

Our most important goal is customer satisfaction. Our customers are the most important part of our business, and each of us depends on them for our job and our paycheck. Because our customers deserve a quality product and courteous, attentive treatment, employees should always remember that:

CUSTOMERS are the most important people in our business.

CUSTOMERS are not dependent on us, we are dependent on them.

CUSTOMERS are not an interruption of work; they are the purpose for it.

CUSTOMERS favor us with their patronage. We are not doing them a favor by serving them.

CUSTOMERS are our business, they are not outsiders.

CUSTOMERS are not cold statistics; they are human beings with feelings and emotions like our own.

CUSTOMERS are not people to argue with or match wits with.

CUSTOMERS are people who bring us their wants. It is our job to fill these wants.

CUSTOMERS are deserving of the most courteous and attentive treatment we can give.

CUSTOMERS ARE THE LIFE BLOOD OF OUR BUSINESS.

OUR EMPLOYEE RELATIONS PHILOSOPHY

Long of Chattanooga is dedicated to continuing an excellent employee relations program. We will maintain good working conditions, competitive wages, benefits, and open communication. It is our preference to continue to deal with employees directly. Indeed, we feel that we are better able to respond to your needs, comments, and complaints if you tell us directly, than if we learn of your problems second- hand. Tell us if you have a problem. You will find that the Dealership is receptive to your problems and will make changes to help you and help us have a better run business.

COMMUNICATIONS POLICY

I.PURPOSE

To establish an effective communication program that will promote a better understanding of company policy, objectives, and benefits. The program also provides opportunities for employees to express their opinions, suggestions, and complaints.

I.POLICY

Free flowing communication between all employees of the company is vital to the success of the company. Every employee should be an informed and knowledgeable part of the team.

II.PROCEDURE

In addition to the most vital communication link between the employee and supervisor, the company provides various other opportunities and formats for communicating.

A.Open Door/Problem Solving Policy

Long of Chattanooga maintains an “Open Door Policy” in which you are urged to communicate your problems to the appropriate management person. You are encouraged to discuss your needs and concerns with your immediate Supervisor, Manager, Department Head, Human Resources Office, or any person in management.

B.Employee Publications

Each employee receives an employee handbook which communicates important information about the company, employee expectations, benefits and company policy.

C.Employment Action

The Human Resources Department notifies the appropriate personnel in key departments (i.e., IT, Accounting, Manufacturing, etc.) when an employment action occurs such as a new hire or termination. This is necessary to ensure that the employee is processed in or out of the systems accordingly.

Employment Eligibility Verification

I.PURPOSE

To assure the hiring of individuals who are eligible to work in the United States, as required by federal law.

II. POLICY

Long of Chattanooga is an equal opportunity employer. Hiring decisions are made without considering citizenship or resident status. Candidates are advised that they are required to produce satisfactory evidence of eligibility to work in the United States and that such proof is a condition of employment.

Candidates offered employment will be advised of acceptable documents for this purpose, prior to reporting to work.

New hires must provide actual documents verifying eligibility to work and must complete the “Employment Eligibility Verification” (I9) form prior to starting work. This is accomplished by the Human Resources Department during the orientation of the new employee. Exceptions for extenuating circumstances may be approved by the Human Resources Department, but in any event this process must be completed within three days of commencement of work.

INTRODUCTORY PERIOD

I.PURPOSE

To provide a training and familiarization period in which the new employee is closely evaluated to determine suitability with the requirements of the new job and in which time the new employee evaluates the company and the new job.

II.POLICY

All employees are hired into an introductory period for the first sixty calendar days of their employment. It is the responsibility of the supervisor to monitor the performance of new employees, help the new employees to learn the procedures necessary to complete the new assignment, and to recommend to management if the new employee should remain in the job.

EMPLOYEE STATUS

Regular, full-time employees are employees who are normally scheduled to work thirty two (32) hours or more per week. Regular, full-time employees are eligible for benefits as outlined in the following pages.

Part-time employees are employees who are normally schedules to work fewer than thirty two (32) hours per week. Part-time employees are not eligible for benefits unless otherwise indicated.

All other employees or independent contractors are not eligible for benefits.

If you have any questions concerning your status or the benefits for which you qualify, please ask your supervisor or contact the Human Resource Office.

BENEFITS

YOUR PAY

We distribute paychecks for most employees each Friday, covering hours worked the previous pay period (Tuesday through Monday). Sales staff will be issued paychecks on the 15th and 28th of each month.

. Any questions about your pay amount or deductions should be brought to the attention of your supervisor immediately.

PAID HOLIDAYS

Regular, full-time employees who have completed their introductory period will be compensated for the following days:

New Year’s Day

Fourth of July

Labor Day*

Thanksgiving Day

Christmas Day

Any employee who is absent without the Dealership’s prior approval the work day immediately preceding or immediately after a holiday will not receive holiday pay.

*Salespersons may be required to work on Labor Day. If so, the salesperson may schedule a comp day for a later time with advance approval from their supervisor.

PAID VACATIONS

All regular, full-time employees are eligible for paid vacation after each full year of continuous employment. The length of the vacation depends on your years of service with the Dealership.

Employees earn vacation according to the following schedule:

After one full year on continuous service – 1 week

After three full years of continuous service – 2 weeks

Vacation time is given to employees so that they will be better able to perform their jobs when they return. For this reason, we encourage employees to take their vacation, rather than pay in lieu of time off.

All vacation must be taken within one year of the date it is earned and may not be carried forward to future years. Employees forfeit all vacation due upon termination of employment. Vacation must be scheduled and approved by your Department Manager.

MEDICAL INSURANCE

We provide medical insurance coverage for our regular, full-time employees after 30 calendar days of continuous employment. The Dealership pats the majority of the insurance premium for eligible employees. Family coverage is also available of the employee’s expense through payroll deduction. You may obtain additional information about this plan through the Human Resource Office. For specific details concerning eligibility and coverage, please consult the Summary Plan Description (SPD) and the insurance contract itself.

The cost of the Dealership’s insurance is based upon how often it is utilized. Therefore, each of us must work to utilize the cost containment provisions of the policy. This will help to keep the cost of our insurance down and enable us to continue to provide this very valuable benefit.

LIFE INSURANCE

Life insurance is provided for all regular, full-time employees after 30 calendar days of continuous employment. Long of Chattanooga pays the entire individual life insurance premium for eligible employees. You may obtain additional information about the plan through the Business Office. For specific details concerning the eligibility and coverage, please consult the Summary Plan Description (SPD) and the insurance contract itself.

SOCIAL SECURITY INSURANCE

Under the Federal Insurance Contributions Act, better known as the Social Security Act, the Dealership is required to deduct a percentage of your pay and match it with an equal amount from the Dealership. If you are not familiar with the retirement and disability benefits provided under Social Security, check with the Business Office of your local Social Security office for a more complete explanation.

WORKERS’ COMPENSATION

Workers’ compensation is required by State law and paid entirely by your employer and protects you in the event of occupational injury is sickness. You must immediately report any on the job accident, no matter how small, to your supervisor. Where medical care is required for on the job injuries, employees must go initially to one of the designated medical facilities.

EMPLOYEE DISCOUNTS

We encourage employees to use our dealerships products and services. Depending on availability and at the sole discretion of the appropriate Department Manager, the following discounts are available to regular, full-time employees with 90 days continuous employment. These discounts are available only to our employees for their personal use and cannot be used by or for friend or relatives of the employee. They are also not available when an insurance company or third party is paying for the service or part. Under these conditions, the amount is approved by the named insurance carrier will be collected in full by Long of Chattanooga, plus any required deductible. Under no circumstances may these discounts be used for personal profit or to compete with the Dealership. Proof of ownership may be required for personally owned vehicles.

1)Service- The Dealership provides a discount for repair work on our employees’ vehicles. However, no employee vehicle is to be worked on in the Service Department or Body Shop unless a repair order is filled out by the manager of the department. Of course, the vehicle must have the proper routing and spot number attached to the vehicle. Due to insurance requirements, no work can be performed before or after regular shop hours.

2)Parts- Employees may purchase parts at a special employee discount.

3)New Vehicles- One new vehicle per year may be purchased for personal use, subject to the above conditions at invoice price.

4)Used Vehicles- Used vehicles may be purchased at a discount established by the Used Car Manager.

CIVIC DUTY LEAVE

We encourage each of our employees to accept his or her civic responsibilities. As a good corporate citizen, we are pleased to assist you in the performance of your civic duties.

Jury duty – if you receive a call to jury duty, please notify your supervisor immediately so that we can plan the department’s work with as little disruption as possible.

Employees who are released for jury service before the end of their regularly scheduled shift, or who are not asked to serve on a jury panel are expected to call their supervisor as soon as possible after being released and report to work if requested.

Voting- Although polls are open from 7:00 a.m. to 7:00 p.m., we realize that overtime work may prevent some employees from making it to the polls on time. If you have a problem in this regard, please let your supervisor know so that we can plan the department’s work with as little disruption as possible.

PAID BEREAVEMENT LEAVE

Regular, full-time employees are eligible to receive up to three days paid bereavement leave due to the death of a member of their immediate family. An employee’s immediate family includes his or her spouse, children, stepchildren, parents, grandparents, grandchildren, brother or sister, spouse’s parents, and any other relative residing in the same household.

If an employee is notified of a death in his or her family while at work, the employee will be paid for the remainder of the schedules hours that day, and the three-day eligibility for paid bereavement will not commence until the next regularly scheduled work day which is lost. All time off in connection with the death of one of the above listed individuals should be scheduled with your supervisor.

MEDICAL LEAVE OF ABSENCE

Employees who have completed their introductory period are eligible for unpaid leaves of absence for medical reasons, which may include illness, injury, medical and surgical procedures, pregnancy, childbirth, and related medical conditions. Employees must request a leave of absence if they will be unable to work for medical reasons for more than twelve (12) consecutive days. Each request for a medical leave of absence must be accompanied by a statement, acceptable to the Dealership, from the employee’s physician or a Dealership-approved physician indicating that the employee is unable to perform his or her job duties.

Employees seeking to return to work after a medical leave of absence must present to the Dealership a statement acceptable to the Dealership, from the employee’s physician or a Dealership-approved physician indicating that the employee is unable to return to work.

The Dealership retains the right to have employees requesting, taking, or returning from medical leave examined by a physician of the Dealership’s choice, to the extent allowed by law.

Upon an employee’s return from a medical leave of absence, we will attempt to return the employee to his or her regular job, if it is available. If it is not available, we will place the employee in a similar job for which he is she is qualified, if such a job is available. Although we will attempt to reinstate employees returning from medical leave of absence, we cannot guarantee that they will be returned to work or that they will be returned to a particular position or a particular rate of pay.

Failure to report to work as scheduled following a medical leave of absence may result in disciplinary action, up to and including immediate termination. Time spent on leave of absence will not count toward computing benefits such as vacation or holiday pay.

MILITARY LEAVE OF ABSENCE

Employees who require time off from work to fulfill military obligations will be treated in accordance with the applicable requirements of state and federal law. You are required to notify your supervisor of upcoming military duty by providing him or her with a copy of your orders as soon as possible.

POLICIES AND PROCEDURES

This section of your Handbook discusses your responsibilities to the Dealership. Please familiarize yourself with these policies and apply them in your work. The result of your effort will be a more efficient, productive, and pleasant atmosphere for you, your co-workers and our customers.

BASIC WORK RULES

Absenteeism- Absenteeism is a problem which causes poor morale, overtime, and overstaffing. Your dependability in attendance is critical for you, your co-workers and the Dealership.

Our attendance standard is simple – we expect you to report to work on your scheduled shift, on time, and complete the scheduled work shift.

Unsatisfactory attendance may result in:

•Progressive corrective action;

•Disqualification of job; and/or

•Loss of employment.

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The Dealership realizes that there may be an occasion when an absence is unavoidable. In the event of an absence, you are required to notify your supervisor / manager as far in advance as possible. You are expected to personally notify the Dealership of your absence, except in extenuating circumstances. Failure to properly notify the Dealership of an absence may result in corrective action.

Conflict of Interest – We prohibit employees from transacting any business that competes with the Dealership. If you think that you may have such a conflict, you must immediately notify your supervisor.

Discourtesy – We expect all employees to be courteous, polite and friendly both to our customers and to their fellow employees. No one should use profanity or show disrespect to a customer or co-worker, or engage in any activity which could harm the image or reputation of our Dealership. This applies to both in person and online communications

Damage to Property- We have made a tremendous investment in our facilities and equipment to better serve our customers and to make your job easier. Deliberate or careless damage to the Dealership’s property will not be tolerated.

Fraud, Dishonestly, and False Statements – No employee or applicant may falsify or make any misrepresentations on or about any application, document establishing identity or work status, medical history record, insurance form, invoice, production paperwork, time sheet, time card, or any other document. If you observe such a violation, please report it to your supervisor or the General Manager immediately.

Gifts or Gratuities – Employees may not request or accept any gift or gratuity of any kind from a customer or supplier without the express authorization of the General Manager.

Harassment – Our No Harassment Policy, which we have set forth in detail in this handbook, strictly prohibits harassment based on race, color, religion, sex, national origin, citizenship, age, handicap or disability, or marital status, or any other category protected by law.

Insubordination – We all have duties to perform and everyone, including your supervisor, must follow directions from someone. No employee may refuse to follow the directions of a supervisor or management official.

Misuse of Property – Employees may not misuse or use without authorization any equipment, vehicle, or other property of customers, vendors, other employees or the Dealership.

Poor Performance – We are committed to providing a safe place for you to work, and we have established a safety program to ensure that everyone understands the importance of safety. This program requires all of us to exercise good judgment and common sense in our day-to-day work. Horseplay and practical jokes can cause accidents and injuries and are therefore prohibited.

Sleeping or Inattention – To protect the safety of all employees and to properly serve our customers, everyone needs to be fully alert while on the job. We cannot tolerate sleeping or inattention on the job.

Theft – Our society has laws against theft and so do we. To protect you, your co-workers, and the Dealership, we reserve the right to inspect all purses, briefcases, packages, lockers, toolboxes, desks, cabinets, vehicles, and any other items on Dealership property. If you wish to remove any Dealership property, including scrap, from the premises, you must obtain written permission in advance from your supervisor.

Unlawful Activity – No employee may engage in any unlawful, immoral, or unethical activity, either on our property or off the job, since such activity can adversely affect the Dealership or its reputation.

Cell Phones – The cell phone policy included in this handbook states that we do not allow cell phone usage on company time that is not related to the business at hand. Cell phones should never be used while driving or operating machinery.

Cell Phone Policy

The purpose of this policy is to ensure a productive work environment, protect sensitive information, and maintain a professional atmosphere within the dealership.

Personal Use

-Personal cell phone use during working hours is prohibited, except during designated break times.

-Personal calls, text messages, and social media usage should be kept to a minimum and should not interfere with job responsibilities or customer interactions.

-Social Media is constantly growing and becoming more popular. We expect all employees to be courteous, polite and friendly both to our customers and to their fellow employees. No one should use profanity or show disrespect to a customer or co-worker, or engage in any activity which could harm the image or reputation of our Dealership. This policy applies to in person communication or online communication.

Business Use

- Authorized employees may use company-provided cell phones for work-related communication.

- All business calls, emails, or text messages should be conducted in a professional manner, adhering to the dealership's communication guidelines.

Confidentiality and Data Security

- Employees must not store dealership-sensitive information on personal cell phones.

- Sharing company data, customer information, or any confidential material through personal cell phones is strictly prohibited.

Distraction and Safety

- The use of cell phones is strictly prohibited while operating company vehicles or heavy machinery.

- Employees must not use cell phones in a manner that interferes with their attention to customer needs or compromises their own safety.

Cell Phone Etiquette

-Cell phones should be set to silent or vibrate mode while at work.

-Personal calls should be taken outside of customer areas or in designated break areas to avoid disruptions.

Enforcement and Consequences

- Violations of this policy may result in disciplinary action up to and including termination.

By signing below, I acknowledge that I have received, read, and understood the employee cell phone policy. I agree to comply with the guidelines outlined in the policy and understand the consequences of any violations.

Employee Name: Signature:

Absenteeism, Tardiness and Notification

You are expected to be in your work area and ready to work at the beginning of your assigned hours, as described in your job description. Unscheduled absences, late arrivals and early departures must be kept to a minimum.

If you are unable to report to work, or if you expect to arrive late, you must notify your supervisor or upper management by text or voicemail. You must notify your manager or upper management as far in advance of the beginning of your shift as possible. Notifying a coworker or leaving a voice message is not allowed.

If you are physically unable to call, you must have someone call on your behalf and speak directly with your supervisor. As soon as you are able, you should make a follow-up call to your supervisor.

You are required to provide your supervisor with a doctor’s note regarding your absence, late arrival or early departure if it is not pre-approved.

All paid vacation or unpaid leave must be pre-approved and signed off by upper management. Human resources must have a copy of the approval prior to the time taken off.

Unscheduled and/or unexcused absences, late arrivals and early departures can result in disciplinary action, up to and including termination.

By signing this document, you agree to follow and adhere to the absenteeism, tardiness notification policy.

Employee Signature: Date:

Printed Name:

Manager Signature: Date:

Printed Name:

Solicitation / Distribution Policy

I.PURPOSE

This policy establishes rules governing solicitation and the distribution of literature on Company premises by employees and non-employees. This policy applies to all employees, contract and temporary employees, and visitors.

II.POLICY

To prevent unnecessary and costly interruptions to work time and to avoid disruption of operations, the company establishes rules concerning the solicitation and distribution of literature on company property.

Definition:

Solicitation includes asking employees for funds for contributions, to purchase goods for charitable or commercial purposes, to attend events, to sign petitions, to join or become members of a group, to support political candidates, or to support or commit to causes, groups, or interests. Employees are not permitted to engage in solicitations of any kind, to sell goods, or distribute literature in work areas or during working hours, except as described below.

Restrictions on Solicitation:

Solicitation is limited to the following:

• Sale of goods to raise funds for a child’s school, athletic team, Girl Scouts, or Boy Scouts

• Employee sale items approved by the Human Resources Department for posting on the bulletin board

• Fundraisers for charities supported by the company approved by Human Resources

All approved solicitation must be in non-work areas and during non-working hours.

The Company permits employees to solicit funds for Company-sanctioned events and activities, such as sending flowers to sick or bereaved co-workers.

Solicitation by Non-Employees

The Dealership prohibits non-employees from entering Dealership premises to solicit support, distribute literature, or sell products or services. The Dealership has the right to contact local law-enforcement authorities to take action against non-employees who trespass on company property. Employees should contact the HR department immediately to report non-employee violations of this policy.

DRUG FREE WORKPLACE POLICY

1.Purpose

It is the

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