Staff Manager Associate

*

EMPLOYEE HANDBOOK

JUNIOR SENIOR, INC., and or

SHIPROCK ENTERPRISE, Ltd.

Version Dated April 18, 2012

Welcome to Junior Senior Inc., and or Shiprock Enterprise Ltd., (hereinafter referred to as “The Company") and we wish you every success here. We believe that each associate contributes directly to our Company's success and we hope you will take pride in being a member of our team. The Company believes that an organization is best served by a shared understanding of each other's roles, responsibilities and relationships. This handbook outlines the policies and practices that guide our daily work together. The Company has developed this handbook for the use and benefit of all Company associates.

This handbook is intended solely as a guide. The language used in the handbook should not be construed as creating a contract of employment between The Company and any of its associates. The Company retains the right to unilaterally modify or amend this handbook at its sole discretion.

· Changes or modifications to this handbook will be made in writing and distributed to you. At the Company, we are committed to a safe working environment and supplying the adequate associate training to ensure such.

Please read the following policies which have been adopted for your safety as well as the safety of all Company associates. These policies create an understanding of what is expected of you during your employment with The Company. Should you need any clarification of any policy or if you are aware of other associates not following the policies, contact Wilbert Hardwell or W. W. Butler Jr. SECTION 100: EMPLOYMENT POLICIES AND PRACTICES

101 Statement of At-Will Employment

All employment at The Company is employment at-will. Employment at-will may be terminated with or without cause and with or without notice at any time by the associate or The Company. Nothing in this handbook or any document or statement shall limit the right to terminate employment at-will. No staff manager or associate of The Company has any authority to enter into any agreement for employment for any specified period of time, or to make any agreement for employment other than at-will. Only W.W. Butler, Jr., has the authority to make any such agreement and then only in writing. 102 Equal Employment Policy

The Company is an equal opportunity employer and makes employment decisions on the basis of merit. We want to have the best available person in each job. Company policy prohibits unlawful discrimination based on race, sex, age, national origin, religion, disability or any other consideration made unlawful by federal or state laws.

The Company is committed to complying with all applicable laws providing equal employment opportunities. This commitment applies to all persons involved in the operations of The Company and prohibits unlawful discrimination by any associate of The Company, including staff managers and co-workers. All associates have a personal responsibility to conduct themselves in compliance with this policy and to report any observations of discrimination and/or harassment immediately to W.W. Butler, Jr. 2

103 Handbook is NOT a Contract

The policies and procedures presented here are for information and illustration purposes and are in no way to be considered as a contract of employment or guarantee of continued employment for any specific period of time.

The policies and procedures set forth in this handbook are effective immediately and supersede and replace any policies and/or procedures from any previous handbooks. In addition, The Company has the right to unilaterally amend or withdraw any policy or matter set forth in the Associate Handbook at any time, without notice, for any reason it deems appropriate. It is your responsibility to read and understand this handbook. 104 Terms and Conditions of Employment

All employment at The Company is employment at-will. Employment at-will may be terminated with or without cause and with or without notice at any time by the associate or The Company. Nothing in this handbook or in any document or statement shall limit the right to terminate employment at-will. No staff manager or associate of The Company has any authority to enter into any agreement for employment for any specified period of time, or to make any agreement for employment other than at-will. Only W.W. Butler, Jr., has the authority to make any such agreement and then only in writing. Any misrepresentation made by an associate when completing the employment application will not be tolerated. Any employment with The Company is completely conditional upon the receipt of all accurately completed and necessary documentation related to employment The Company may, at its sole discretion, transfer associates among different stores other than the initial store an associate may be hired for, and in addition, as a condition of employment, all associates must be willing to travel to the different stores and provide their own transportation. The compensation, hours of employment, and all other terms and conditions of employment for any and all associates are subject to modification by The Company at any time at its sole discretion. 105 Associate Classification

It is the intent of The Company to clarify the definitions of employment classifications so that associates understand their employment status and benefit eligibility. These classifications do not guarantee employment for any specified period of time. Accordingly, the right to terminate the employment relationship at will at any time is retained by both the associate and The Company. Full-Time Associate: An associate who is not temporary and who is regularly scheduled to work at least 40 hours per week or more.

Part-Time Associate: An associate who is not assigned to a temporary status and who is scheduled to work less than 40 hours per week. A part-time associate may be hired on a long-term or episodic basis, depending upon the needs of The Company. ·

Status: Each associate is designated as either non-exempt or exempt from federal and state wage and hour laws. Non-exempt associates are entitled to overtime pay under the specific provisions of federal and state laws. Exempt associates are excluded from specific provisions of federal and state wage and hour laws. Your status will be determined by Senior Management.

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Exempt Associates: Salaried associates who are not eligible for overtime wages under the Fair Labor Standards Act.

Non-Exempt Associates: Salaried and hourly associates who are entitled to overtime wages under the Fair Labor Standards Act.

106 Personnel File

All information contained in your personnel file is confidential and is the property of The Company. However, you have the right to inspect certain documents in your personnel file, as provided by law, in the presence of a member of Management. No copies of documents in your file may be made. You are responsible for informing The Company of any changes to your personal status that may alter payroll or benefit related documents. Such information may include, but is not limited to: address, telephone number, marital status, last name, dependents, beneficiaries and W-4 deductions. All requests for references must be directed to The Corporate office. No other associate is authorized to release references for current and/or former associates. The Company's policy as to references for associates who have left is to disclose only the dates of employment, the last position held, eligibility for recommendation or commendation, and The Company may also give letters of recommendation.

107 Wage and Salary Policies

All applicable taxes must be deducted from your paycheck and, in certain instances where ordered by a court of law, child support, tax liens, etc., are also deducted. We are required to withhold all mandated payroll taxes on any income earned. Voluntary deductions must be consented to in writing and given to The Company prior to deductions.

Please note that all required employment documentation must be complete and in the possession of The Company office for an associate to receive their initial paycheck. 108 Pay Periods and Recording Work Time

A. Paydays

Associates shall be paid on alternating Wednesday's for the preceding two-week period. No paychecks will be prepared or delivered to any associate prior to the regularly scheduled payday. Paychecks may be picked up only by the associate or the associate's spouse or legal guardian with associate's written authorization to do so. If unavailable to pick up, the associates must provide the office with written authorization to mail the paycheck, as well as a self-addressed envelope and $5.00 "money order" to cover the cost of sending the check by certified mail, or by any other method with written authorization by the Employee, subject to Company approval. Paychecks that are not picked up from the store within five (5) days may be obtained at the corporate office.

If after your receiving your paycheck and is then lost, there is a $25.00 processing fee to replace it, plus current bank fee for stopping payment on lost check. However, if check has been cashed we cannot thereafter replace it.

B. Clocking In and Out

All associates are required to clock in and clock out accurately each day according to the schedule sheet provided in the store in which the associate works. If the associate fails to clock in or out accurately only a Company Authorized Manager can make the correction. Additionally, any 4

errors regarding your work time must also be reported to the Corporate Office Payroll Manager immediately. The associate will provide written verification that all hours of work have been properly paid for the preceding two-week period. Any claims for unpaid work will not be considered if the associate fails to advise the company of the error in a timely manner. Failure to clock in and out as scheduled will not be tolerated. Further, clocking in and out for another associate will not be tolerated.

Clocking in early or clocking out late is not allowed without prior authorization of the Store Manager. Falsely recording your time or recording another associate's time will not be tolerated. No associate shall work off the clock. Any management member found to be asking, encouraging or knowingly allowing any associate to work off the clock (i.e., without pay) will be terminated upon confirmed discovery. It is every associate's responsibility to review your paycheck, listing your hours worked in verification that all hours worked were PAID properly. If anyone is asked to work off the clock by a member of management you are required to notify W.W. Butler, Jr., either by phone 806-***-**** or by email: ********@***.*** whereby an investigation in confirming such allegation will be forthcoming. Below are examples which include, but are not limited to, working off the clock: 1. Employee clocks out then Management asks employee to help with something before leaving. 2. Employee comes in early and helps out before clocking in. 3. Employee is waiting for a fellow worker to get off and assists off the clock. 4. Clocking in and out while waiting on premises to work. C. Overtime

Any overtime for associates must be approved by the Store Manager in advance. Approved overtime compensation is paid to all non-exempt associates in accordance with federal and state laws at a rate of one and one-half times straight-time rate for all hours over 40 in a work week. D. No Breaks

The Company does not provide for break periods.

E. Notice of Illness or Inability to Work

Associates are required to give a minimum of two hours advance notice of the associate's inability to perform his or her regularly scheduled duties as a result of illness or injury. Failure by any associate to provide such notice will not be tolerated. If two (2) or more consecutive days of work are missed for illness or injury, you may be required to provide a medical release from a doctor before returning to work. If your doctor provides a medical release ''with conditions" or "limitations" of any kind, you must obtain the authorization of the General Manager prior to returning to work. The Company reserves the right to send an associate home who appears to be ill or injured and also reserves the right to require a doctor's release prior to the associated returning to work. Should an associate be injured while on or off the job and his/her doctor places him/her on restricted, limited, or any other type of light duty work, The Company may allow that associate to work in the capacity of a production line server only, which duties include, but are not limited to, the cash 5

register, making sandwiches, baking bread and maintaining/stocking the sandwich unit. Generally, these hours are lunch and dinner periods only where the volume of business is such that additional shifts are warranted for the duties described above. F. Administrative Pay Corrections

The Company takes all reasonable steps to assure that associates receive the correct amount of pay in each paycheck and that associates are paid promptly on the scheduled payday. In the unlikely event that there is an error in the amount of pay, the associate should promptly bring the discrepancy to the attention of the Company's Payroll Manager so that corrections can be made as quickly as possible. Once underpayments or overpayments are identified, they will be corrected in the next regular paycheck unless this presents a burden to the associate. In that case, the Company will attempt to arrange a schedule of payment or repayments with the associate to minimize the inconvenience to all involved.

109 Sexual Harassment and Illegal Discrimination Policy A fundamental policy of The Company is that the workplace is for work. Our goal is to provide a workplace free from tensions involving matters which do not relate to the Company's business. In particular, an atmosphere of tension created by non-work-related conduct, including ethnic, racial, sexual or religious remarks, national origin, disability, animosity, unwelcome sexual advances or request for sexual favors or other such conduct does not belong in our workplace. Harassment of associates or of applicants by other associates, by those of the opposite or same sex, is prohibited. Harassment includes, without limitation, verbal harassment (epithets, derogatory statements, slurs), physical harassment (assault, physical interference with normal work or involvement), visual harassment (posters, cartoons, drawings, and innuendo). Sexual harassment is a violation of State and Federal law. It includes unwelcome sexual advances, requests for sexual favors, sexually motivated physical contact and other verbal or physical conduct, or visual forms of harassment of a sexual nature when submission to such conduct is either explicitly or implicitly made a term or condition of employment or is used as the basis for employment decisions or when such conduct has the purpose or effect of unreasonably interfering with an individual's work performance or creating an intimidating, hostile or offensive work environment. You cannot be forced to submit to such conduct as a basis for any employment decision and The Company will do its best to keep itself free of any conduct which creates an intimidating, hostile or offensive work environment for its associates.

What to Do if You Feel Our Policy Has Been Violated In the event that any sort of ethnic, racial, religious, or sexual harassment, or similarly abusive verbal or physical conduct interferes with any individual's work performance or creates an intimidating, hostile or offensive work environment, we require that you promptly contact: Mr. William W. Butler, Jr.

601 Slaton Road

Lubbock, Texas 79404

Phone: 806-***-****

Email: ********@***.***

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If The Company determines that harassment has occurred, appropriate relief for the associate bringing the complaint and appropriate disciplinary action against the harasser, up to and including discharge, will follow. A non-associate who subjects an associate to harassment in the workplace will be informed of The Company's policy and appropriate action will be taken. The Company will not tolerate retaliation against any associate who complains of harassment or provides information in connection with any such complaint It is the duty of each and every employee to immediately report any such misconduct directly to Mr. William W. Butler, Jr. as stated above. All management members of The Company are NOT authorized nor permitted to engage in any reporting of Sexual Harassment or Discrimination Claims. Rather all Company management members are required to direct anyone reporting such concerns to Mr. William W. Butler, Jr. directly as stated above. The Company will not accept any responsibility if the complaining party has failed to properly notify "William W. Butler, Jr." as established through this required internal grievance policy procedure.

110 Drug and Alcohol Policy

The Company has a vital interest in maintaining safe, healthful and efficient working conditions for its associates. Being under the influence of a drug or alcohol on the job may pose serious safety and health risks not only to the user but to all those who work with the user. The possession, use or sale of an illegal drug or alcohol in the workplace may also pose unacceptable risks for safe, healthful and efficient operations. The Company recognizes that its own future is dependent upon the physical and psychological health of its associates. Accordingly, it is the right, obligation and intent of The Company to maintain a safe, healthful and efficient working environment for all of its associates and to protect the Company's property, equipment and operations.

With these basic objectives in mind, the Company has established the following policy with

· regard to use, possession or sale of alcohol or drugs. POLICY STATEMENT

1. On The Job Use, Possession or Sale of Drugs or Alcohol a) Alcohol

Being under the influence

1 of alcohol by any associate while in a Company facility is not tolerated. Consumption of alcohol in a Company facility is not tolerated. b) Legal Drugs2

1 "Under the influence" means. for the purposes of this policy, that the associate is affected by a drug or alcohol or the combination of a drug and alcohol in any detectable manner. The symptoms of influence are not confined to those consistent with misbehavior, nor to obvious impairment of physical or mental ability, such as slurred speech or difficulty in maintaining balance. A determination of influence can be established by a professional opinion, a scientifically valid test, or, in some cases such as alcohol. by a layperson's opinion. 2 "Legal Drug" includes prescribed drugs and over-the-counter drugs which have been legally obtained and are being used for the purpose for which they were prescribed or manufactured. 7

Except as provided below, the use of or being under the influence of any legally obtained drug by any associate while performing Company business or while in a Company facility is prohibited to the extent such use or influence may affect the safety of co-workers or members of the public, the associate's job performance, or the safe or efficient operation of the Company facility. An associate may continue to work, even though under the influence of a legal drug, if a member of Senior Management has determined that the associate does not pose a threat to his/her own safety or the safety of co-workers and that the associate's job performance is not significantly affected by the legal drug. Otherwise, the associate may be required to take leave of absence or comply with other appropriate action determined by Senior Management

The use of or being under the influence of any "legally" obtained drug by any associate while performing Company business or while in a Company facility whereby the use of that drug may reduce or effects your performance ability to do your job must be brought to the attention of the General Manager immediately. To ensure that any special observations and or considerations are made prior to your working under the influence of that drug, for your safety and the safety of others. c) Legal Drugs3

The sale, purchase, transfer or possession of an illegal drug by any associate is prohibited. The presence in any detectable amount of any illegal drug in an associate while performing Company

- business or while in a Company facility is prohibited. 2. Disciplinary Action

Violation of this policy can result in disciplinary action, up to and including termination, even for a first offense.

3. Drug and Alcohol Screening

The Company may require a blood test, urinalysis, or other drug/alcohol screening of those persons suspected of using or being under the influence of a drug or alcohol or where circumstances or workplace conditions justify it. An associate's consent to submit to such a test is required as a condition of employment and the associate's refusal to consent may result in disciplinary action, including termination, for a first refusal or any subsequent refusal.

a) Intoxicating Beverages

No associate shall:

1. Consume an intoxicating beverage, regardless of alcoholic content, or be under the influence of an intoxicating beverage, within four hours before going on duty or operating a Company owned vehicle; or

2. Consume an intoxicating beverage, regardless of alcoholic content, or be under the influence of an intoxicating beverage, while on duty, or operating, or in a physical control of, a Company owned vehicle.

b) Alcohol Testing

In some cases, incumbent Company associates may be subject to alcohol testing, in the form of periodic testing, random testing, reasonable cause testing, and post-accident testing. 8

111 Searches

The Company may conduct unannounced searches for illegal drugs or alcohol or theft in Company facilities. Associates are expected to cooperate in the conducting of such searches. Searches of associates and their personal property may be conducted when there is reasonable suspicion to believe that the associate(s) are in violation of this policy. Searches of associates and their personal property may otherwise be conducted when circumstances or workplace conditions justify them. An associate's consent to a search is required as a condition of employment and the associate's refusal to consent may result in disciplinary action, including termination, even for a first refusal. Searches of Company facilities and property can be conducted at any time and do not have to be based on reasonable suspicion.

112 Americans with Disabilities Act Amendment Act (ADAAA) The Company is subject to the Americans With Disabilities Act & Amendment Act (ADAAA). Those individuals with a disability should notify W.W. Butler Jr., at the hiring stage or upon discovery of a disability for reasonable accommodations.

SECTION 200: BENEFITS AND LEAVES

201 Food and Drink

Associates are permitted a 50% discount each day of work, up to a total ticket value of $10.00 or total discount value of $5.00, for food and drink. This benefit may not be used in conjunction with other offers or discounts nor can it be used at any store location other than where the associate works. The associate must be present and must sign the back of the register receipt to receive the discount. Under no circumstances is the associate to make his or her own sandwich, but rather another on duty associate must do so using approved product formula The Company reserves the right to discontinue or withhold this benefit at any time for any reason. Additionally, each associate is permitted free fountain beverages during work hours only, excluding bottled beverages. The associate must use the associates designated cup size, with lid, and the lid must be on the cup at all times. Pursuant to health code regulations, associates beverage cups must be stored in designated areas only. Store managers are permitted free meals for their own personal consumption but only at the store at which they manage. Unless otherwise notified by the General Manager or authorized corporate office representatives, no other associate is permitted free products. No outside food or drink products are permitted on Company properties. Any stealing or improper discounts discovered may lead to immediate termination.

202 Family and Medical Leave of Absence

A. Family and/or Medical Leave

A family and/or medical leave of absence is an approved absence and is available to associates who have worked for the employer for 12 months or longer compiling at least 1,250 hours of service during the 12 months before seeking leave under particular circumstances that are critical to the family's life and work at a facility with 50 or more associates within a 75 mile radius of the associate' s worksite. 9

1. Up to 12 weeks of unpaid leave may be taken for the following reasons: a. On the birth of a son or daughter and the decision to provide care for that infant;

b. Because of the placement of a son or daughter with the associate for adoption or foster care;

c. In order to care for the spouse, son, daughter or parent of an associate who has a serious health condition;

d. Where the associate experiences a "qualifying emergency" arising out of their spouse, parent or child is on or has been called to active duty; or e. Because of a serious health condition of an associate that makes the associate unable to perform the essential functions of his/her job. 2. Up to 26 weeks of unpaid leave may be taken during one 12-month period for the Injured Service Member Leave as follows:

In order to care for a spouse, son, daughter, parent or next of kin who is a member of the Armed Forces, including a member of the National Guard or Reserves, who is undergoing medical treatment, recuperation, or therapy, is otherwise in outpatient status, or is otherwise on the temporary disability retired list, for a serious injury or illness.

B. Associate Obligations

In any case where the need for the leave is foreseeable, including the birth or adoption of a child, or planned medical treatment, the associate must provide at least 30 calendar days' notice for a foreseeable leave, unless there is a change in circumstances. An associate must request such leave in a written form to their immediate supervisor. This notice must be completed in detail, signed by the associate and submitted to the Store manager, General Manager or Company office for Company approval.

In cases of illness, such as when the need for leave arises unexpectedly, the associate will give notice as soon as practical (generally this means no less than two hours prior to scheduled work, unless such condition prevents you from doing so). In case of illness, the associate must provide appropriate medical certification and re-certifications, as requested by the Company. In cases of illness lasting more than two days, the associate will also be required to report periodically on his or her leave status and intent and ability to return to work.

In case of the associate experiencing a "qualifying exigency" because a spouse, parent or child has been called to or is on active duty in the armed services, the associate will be required to provide certification that the associate's family member is on active military duty. In the case of an injured armed services spouse, son, daughter or next of kin, certification of the service member's health condition may be required. C. Conditions of Leave

The Company may require a Health Care Provider Certification for a seriously ill child, spouse, parent, next of kin or member of the Armed Forces or leave for an associate's own serious health condition. This form (see Department of Labor Form WH-380 Certification of Physician or Practitioner form) must be completed and signed showing that the associate requires FMLA leave. 10

'This certification must be returned to the Company within 15 days after the associate has given notice of his/her intent to take an FMLA leave and it must contain the following information:

• Date onwhich the serious health condition arose;

• Probable duration of the condition;

• Appropriate medical facts within the knowledge of the healthcare provider regarding the condition, including specifying the treatment prescribed. 1. In addition, for purposes of leave to care for a child, spouse, parent, next of kin or member of the Armed Forces the certificate should give an estimate of the amount of time that the associate will be needed to provide this care. 2. For purposes ofleave for an associate's illness, the certificate must state that the associate is unable to perform the functions of his or her position. 3. In case of certification for intermittent leave or leave on a reduced leave schedule for planned medical treatment, the dates on which this treatment is expected to be given and the duration of this treatment must be stated. 4. In its discretion, the Company may require a second medical opinion and periodic recertification at its own expense. If the first and second opinions differ, the Company, at its own expense, may require the binding opinion of a third healthcare provider, approved jointly by the Company and the associate. 5. If medically necessary for a serious health condition of the associate or his or

"her spouse, child or parent, leave may be taken on an intermittent or.reduced leave schedule. If leave is requested on this basis, however, the Company may require the associate to transfer temporarily to an alternative position that better accommodates recurring periods of absence or a part-time schedule, provided the position has equivalent pay and benefits.

6. Spouses who are both employed by the Company are entitled to a total of 12 weeks of unpaid leave, instead of 12 weeks each, for the birth or adoption of a child or for the care of a

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