EmployeeManual

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Welcome to Carpet Weaver's

We’re very happy to welcome you to Carpet Weaver's. We want you to feel that your association with Carpet Weaver’s will be a mutually beneficial and pleasant one.

You have joined an organization that has established an outstanding reputation for quality products and services. Credit for this goes to every one of our employees. We hope you, too, will find satisfaction and take pride in your work here.

This manual provides answers to most of the questions you may have about Carpet Weaver's benefit programs, as well as the company policies we abide by. If anything is unclear, please discuss the matter with your manager. You are responsible for reading and understanding this Employee Manual, and your performance evaluations will reflect your adherence to Carpet Weaver’s policies. In addition to clarifying responsibilities, we hope this Employee Manual also gives you an indication of Carpet Weaver’s interest in the welfare of all who work here.

From time to time, the information included in our Employee Manual may change. Every effort will be made to keep you informed through suitable lines of communication.

Compensation and personal satisfaction gained from performing a job well are only some of the reasons most people work. Most likely, many other factors count among your reasons for working – pleasant relationships and working conditions, career development and promotion opportunities and health benefits are just a few. Carpet Weaver’s is committed to doing its part to assure you of a satisfying work experience.

I extend to you my personal best wishes for your success and happiness at Carpet Weaver's.

Sincerely,

Mark Weaver, PresidentCarpet Weaver's, Inc

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CARPET WEAVER’S MAY SPREAD ITSELF OVER THE WHOLE WORLD – MAY EMPLOY THOUSANDS OF MEN AND WOMEN – YET THE AVERAGE PERSON WILL FORM THEIR JUDGEMENT OF CARPET WEAVER’S THROUGH THEIR CONTACT WITH ONE INDIVIDUAL. IF THIS PERSON IS RUDE OR INEFFICIENT, IT WILL REQUIRE A LOT OF COURTESY AND EFFICIENCY TO OVERCOME THE BAD IMPRESSION. EVERY MEMBER OF CARPET WEAVER’S WHO, IN ANY CAPACITY COMES IN CONTACT WITH OUR CUSTOMERS IS A SALESMAN – THE IMPRESSION HE OR SHE MAKES IS AN ADVERTISEMENT – GOOD OR BAD.

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You’re Part of Our Team…

As a member of Carpet Weaver's team, you will be expected to contribute your talents and energies to improve the environment and quality of the company, as well as the company’s services. In return, you will be given opportunities to grow and advance in your career.

Carpet Weaver's is dedicated to two standards:

1. To provide our customers, with the best quality products and services, at the best prices, with the best service.

2. To provide you with wages and benefits comparable to others doing similar work within the industry and within the region.

At Carpet Weaver's we always put safety first. We believe it is our duty to provide you with as safe a workplace as we possibly can. We also have a substance abuse policy, because you have a right to know you can depend on your co-workers.

The only things we require for employment, compensation, advancement, and benefits are performance and a good team attitude. All employment at Carpet Weaver's is “at will”. At-will employment means that either you or the company can terminate your employment for any reason or for no reason at all. No one at Carpet Weaver’s has the authority to enter into an employment agreement on behalf of the company for a specified time.

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Purpose of This Manual

This manual has been prepared to inform you about Carpet Weaver's employment practices and policies, as well as the benefits provided to you as a valued employee and the conduct expected from you.

No employee manual can answer every question, nor would we want to restrict the normal question and answer interchange among us. It is in our person-to-person conversations that we can better know each other, express our views, and work together in a harmonious relationship.

We hope this manual will help you feel comfortable with us. We depend on you – your success is our success. Please don’t hesitate to ask questions. Your manager will gladly answer them. We believe you will enjoy your work and your fellow employees here. We also believe you will find Carpet Weaver's a good place to work.

We ask that you read this manual carefully, and refer to it whenever questions arise. We also suggest that you take it home so your family can become familiar with Carpet Weaver's and our policies.

Carpet Weaver's policies, benefits and rules, as explained in the manual, may be changed from time to time as business, employment legislation, and economic conditions dictate. If provisions are changed, you will be notified of the changes in a timely manner.

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Notice

The policies in this manual are to be considered as guidelines. Carpet Weaver's, at its option, may change, delete, suspend or discontinue any part or parts of the policies in this manual at any time without prior notice. Any such action shall apply to existing as well as future employees with continued employment being the consideration between the employer and employee. Employees may not accrue eligibility for monetary benefits that they have not earned through actual time spent at work. Employees shall not accrue eligibility for any benefits, rights, or privileges beyond the last day worked. No one other than the President of Carpet Weaver's may alter or modify any of the policies in this manual. No statement or promise by a supervisor, manager, or department head may be interpreted as a change in policy nor will it constitute an agreement with an employee.

Should any provision in this Employee Manual be found to be unenforceable and invalid, such finding does not invalidate the entire Employee Manual, but only the subject provision.

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Receipt & Acknowledgment

Of Carpet Weaver's Employee Manual

This Employee Manual is an important document intended to help you become acquainted with Carpet Weaver's. This Manual will serve as a guide; it is not the final word in all cases. Individual circumstances may call for individual attention.

Because the general business atmosphere of Carpet Weaver's and economic conditions are always changing, the contents of the Manual may be changed at any time at the discretion of consideration of the mutual advantages, disadvantages, benefits and responsibilities such changes will have on you as an employee and on Carpet Weaver's.

Please read the following statements and sign below to indicate your receipt and acknowledgment of the Carpet Weaver's Employee Manual.

I have received and read a copy of the Carpet Weaver's Employee Manual. I understand that the policies, rules and benefits described in it are subject to change at the sole discretion of Carpet Weaver’s at any time.

I further understand that my employment is terminable at will, either by myself or Carpet Weaver's, regardless of the length of my employment or the granting of benefits of any kind, including but not limited to profit sharing benefits which provide for vesting based upon length of employment.

I understand that no contract of employment other than “at will” has been expressed or implied, and that no circumstances arising out of my employment will alter my “at will” employment relationship unless expressed in writing, with the understanding specifically set forth and signed by myself and the President of Carpet Weaver's

. I am aware that during the course of my employment confidential information will be

made available to me, i.e., product designs, marketing strategies, customer lists, pricing policies and other related information. I understand that this information is critical to the success of Carpet Weaver's and must not be given out or used outside of Carpet Weaver's premises or with non-Carpet Weaver's employees. In the event of termination of employment, whether voluntary or involuntary, I hereby agree not to utilize or exploit this information with any other individual or company.

I understand that, should the content be changed in any way, Carpet Weaver's may require an additional signature from me to indicate that I am aware of and understand any new policies.

I understand that my signature below indicates that I have read and understand the above statements and have received a copy of the Carpet Weaver’s Employee Manual.

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Employee’s Printed Name Position

Employee’s Signature Date

Carpet Weavers Representative Date

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Table of Contents

1. Employment 11

Personnel Administration 11

Your Personnel File 11

Employment Classifications 12Full-Time Employees 12Part-Time Employees 12 Temporary Employees 12Exempt and Non Exempt Employees 13

2. Employment Policies 13

Affirmative Action 13 Anniversary Date 14

At Will Employment 14Confidential Information 14Customer Relations 14Driver’s License & Driving Record 15

Drug and/or Alcohol Testing Policy 15Equal Employment Opportunity 16Harassment Policy 16Health Examinations 17Introductory Period 17 Non-Compete Agreement 18 Outside Employment 18 Proof of U.S. Citizenship and/or Right to Work 18 Salesperson Agreement 18

Standards of Conduct 18

Unacceptable Activities 19 Disciplinary Actions 21 Dismissal 21

Wage & Salary Policies 21

Deductions From Paycheck (Mandatory) 21

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Error in Pay 22 Overtime Pay 22 Work Performed on Company Holiday 23 Inclement Weather & “Acts of God” 23Termination & Severance Pay -Sales 23

Termination & Severance Pay-Hourly/Salaried 23Time Cards/Records 23 Wage Assignments (Garnishments) 24

Work Schedule 24Absence or Lateness 24 Attendance 24

Meal Periods 25Excessive Absenteeism or Lateness 25 Record of Absence or Lateness 25

3. Benefits 26

The Benefits Package 26Eligibility for Benefits 26

Paid Leaves of Absence 26 Holidays 26

Recognized Holidays 27 Holiday Policies 27

Vacations 27 Personal Days 27

Amount of Vacation /Personal Days 27 Vacation/Personal Days Policies 28 Accumulation Rights 28

Other Paid Leaves 28 Funeral Leave 28 Jury Duty 29 Sick Leave 29

Unpaid Leaves of Absence 29Family and Medical Leave of Absence 29 Educational Leave of Absence 34 Military Leave of Absence 34 Military Reserves or National Guard Leave of Absence 35

Insurance Coverage 35Disability Insurance 35 Life Insurance 36 Termination of Insurance 36

Government Required Coverage 36Worker’s Compensation 36Unemployment Compensation 37

401k Plan 37

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Other Benefits 38Training (Attending Seminars/ Training Sessions) 38Employee Purchases 39

4. Other Policies 39

Borrowing Tools & Equipment 39Communications 39

Company Data 40 Company Meetings 40

Computer Use 40 Department Meetings 41 Dress Code/Personal Appearance 41 Entry After-Hours 41 Exit Interviews 41 Expense Reimbursement 42 First Aid 42 Grievances 42

Housekeeping 43 Inspection of Packages 43 Layoff & Recall 43 Open Door Policy & Counseling 43 Parking Lot 43 Personal Phone Calls & Mail 44

Privacy 44References 44 Resignation 44

Resolving Problems 44 Return of Company Property 45 Safety Rules 45 Security 45 Smoking 45Solicitations & Distributions 46

Social Media Policy 46 Substance Abuse 48 Theft 49 Traffic Violations 50 Use of Company Vehicle 50 Violations of Policies 50

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1. Employment

Personnel AdministrationThe task of handling personnel records and related personnel administration functions at Carpet Weaver's has been assigned to the Human Resources Department. The recruiting and hiring of personnel may only be enacted or authorized by the Human Resources Department or Management. Non-employees cannot be recruited “temporarily” or otherwise for any Company-related function, whether in the shop or on the job-site. Questions regarding insurance, wages, and interpretation of policies may be directed to the same.

Your Personnel FileKeeping your personnel file up-to-date can be important to you with regard to pay, deductions, benefits and other matters. If you have a change in any of the following items, please be sure to notify your manager or the Human Resources Department as soon as possible:

1. Legal name2. Home address3. Home telephone number4. Person to call in case of emergency5. Number of dependents6. Marital status7. Change of beneficiary8. Driving record or status of driver’s license, if you operate any Carpet Weaver’s vehicles9. Military or draft status10. Exemptions on your W-4 tax form

Coverage or benefits that you and your family may receive under Carpet Weaver's benefits package could be negatively affected if the information in your personnel file is incorrect.

Since Carpet Weaver's refers to your personnel file when we need to make decisions in connection with your employment status, it’s to your benefit to be sure your personnel file

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includes all information about areas of interest and skills that may not be part of your current position here.

You may see information, which is kept in your own personnel file, if you wish, and you may request and receive copies of all documents you have signed. Please ask your manager to make arrangements for you with the Human Resources Department.

Employment Classifications

At the time you are hired, you are classified as full-time, part-time or temporary and are also told whether you qualify for overtime pay. Unless otherwise specified, the benefits described in this Manual apply only to full-time employees. All other policies described in this Manual and communicated by Carpet Weaver’s apply to all employees, with the exception of certain wage, salary and time off limitations applying only to “non-exempt” (see the definition that follows) employees. If you are unsure of which job classification your position fits into, please ask your manager.

Full-Time EmployeesAn employee who has successfully completed the Introductory Period (see the Employment Policies section for definition) of employment and who works at least thirty four (34) hours per week is considered a full-time employee.

If you were a full-time employee and were laid off, you will be considered a full-time employee upon return to work, provided that you were not on layoff for longer than one (1) year.

If you were a full-time employee and have been on an approved leave of absence, upon return you will be considered a full-time employee, provided you return to work as agreed in the provisions of your leave.

Part-Time EmployeesAn employee who works less than a regular thirty four (34) work-week is considered a part-time employee. If you are a part-time employee, please understand that you are not eligible for benefits described in this Manual, except as granted on occasion, or to the extent required by provision of state and federal laws.

Temporary EmployeesFrom time to time, Carpet Weaver's may hire employees for specific periods of time or for the completion of a specific project. An employee hired under these conditions will be considered a temporary employee. The job assignment, work schedule and duration of the position will be determined on an individual basis.

Normally, a temporary position will not exceed six (6) months in duration, unless specifically extended by a written agreement. Summer employees are considered temporary employees.

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If you are a temporary employee, please understand that you are not eligible for benefits described in this Manual, except as granted on occasion, or to the extent required by provision of state and federal laws. Those temporary employees classified as “non-exempt” (see the definition that follows) who work more than the equivalent of 40 hours per week will receive overtime pay.

Non-Exempt and Exempt EmployeesAt the time you are hired, all employees are classified as either “exempt” or “non-exempt”. This is necessary because, by law, employees in certain types of jobs are entitled to overtime pay for hours worked in excess of the 40 hours per week. These employees are referred to as “non-exempt” in the Manual. This means that they are not exempt from (and therefore should receive) overtime pay.

Note: See “Wage & Salary Policies” in the “Compensation & Performance” section of this Manual for a full description of overtime payment policies.

Exempt employees are executives, managers, professional staff, technical staff, outside sales representatives, officers, directors, owners and others whose duties and responsibilities allow them to be “exempt” from overtime pay provisions as provided by the Federal Fair Labor Standards Act (FLSA) and any applicable state laws. If you are an exempt employee, you will be advised of your classification at the time you are hired, transferred or promoted.

2. Employment PoliciesWhether you are a new hire or a former employee returning to Carpet Weaver's, you may feel a little strange in you new surroundings. This is a normal feeling and is expected. Your fellow employees, especially your manager, want to help you get off to a good start. Feel free to ask them for help concerning anything you don’t understand.

One of the first things you should do is carefully read this Manual. It is designed to answer many of your questions about the practices and policies of Carpet Weaver's, what you can expect from Carpet Weaver's, and what Carpet Weaver's expects from you.

Affirmative Action The Company prohibits discrimination because of race, color, religion, sex, national origin, age, veteran status, handicap, marital status, sexual orientation, ancestry, political belief or activity.

It is the policy of Carpet Weaver’s to provide equal opportunity in employment and upward mobility for all qualified persons, to prohibit discrimination in employment because of age, color, handicap, marital status, national origin, race, religion, sex or sexual orientation, and to promote the full realization of equal employment opportunity through a positive, continuing, result-oriented program of affirmative action throughout the Company.

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In support of this policy, the Company affirms its right to take appropriate action if it or other duly constituted authorities should determine that applicable federal and state equal employment opportunity laws and regulations have been violated, or that the effect and intent of their policy have been willfully and/or habitually abrogated.

Anniversary DateThe first day you report to work is your “official” anniversary date. Your anniversary date may be used to compute various conditions and benefits described in this Manual.

At Will EmploymentAll employment and compensation with Carpet Weaver's is “at will” which means that your employment can be terminated with or without cause, and with or without notice, at any time, at the option of either Carpet Weaver's or yourself, except as otherwise provided by law.

Confidential InformationOur customers and suppliers entrust Carpet Weaver's with important information relating to their businesses. The nature of this relationship requires maintenance of confidentiality. In safeguarding the information received, Carpet Weaver's earns the respect and further trust of our customers and suppliers.

Your employment with Carpet Weaver's assumes an obligation to maintain confidentiality, even after you leave our employ.

Any violation of confidentiality seriously injures Carpet Weaver's reputation and effectiveness. Therefore, please do not discuss Carpet Weaver's business with anyone who does not work for us, and never discuss business transactions with anyone who does not have a direct association with the transaction. Even casual remarks can be misinterpreted and repeated, so develop the personal discipline necessary to maintain confidentiality. If you hear, see or become aware of anyone else breaking this trust, consider what he or she might do with information they get from you.

If you are questioned by someone outside the company or your department and you are concerned about the appropriateness of giving them certain information, remember that you are not required to answer, and that we do not wish you to do so. Instead, as politely as possible, refer the request to your manager or to the President.

No one is permitted to remove or make copies of any Carpet Weaver's records, reports or documents, including but not limited to price lists, customer lists, mill account numbers and information without prior management approval.

Because of its seriousness, disclosure of confidential information could lead to dismissal.

Any information relating to your wages, hours and terms and conditions, as anticipated by the National Labor Relations Act, of employment are excluded and exempted from this confidentiality provision.

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Customer RelationsThe success of Carpet Weaver's depends upon the quality of the relationships between Carpet Weaver's, our employees, our customers, our suppliers and the general public. Our customers’ impression of Carpet Weaver's and their interest and willingness to purchase from us is greatly formed by the people who serve them. In a sense, regardless of your position, you are Carpet Weaver's ambassador. The more goodwill you promote, the more our customers will respect and appreciate you, Carpet Weaver's and Carpet Weaver's products and services.

Here are several things you can do to help give customers a good impression of Carpet Weaver's:

1. Act competently and deal with customers in a courteous and respectful manner.2. Communicate pleasantly and respectfully with other employees at all times.3. Follow up on orders and questions promptly, provide businesslike replies to inquiries

and requests, and perform all duties in an orderly manner.4. Take great pride in your work and enjoy doing your very best.

These are the building blocks for your and Carpet Weaver's continued success. Thank you for adding your support.

Driver’s License & Driving RecordEmployees whose work requires operation of a motor vehicle must present and maintain a valid driver’s license and a driving record acceptable to our insurer. You may be asked to submit a copy of your driving record to Carpet Weaver's from time to time. Any changes in your driving record must be reported to the Human Resources Department immediately. Failure to do so may result in disciplinary action, including possible dismissal.

Note: See “Traffic Violations” and “Use of Company Vehicle” in the “Other Policies” section of this Manual for further information.

Drug and/or Alcohol Testing Policy Carpet Weaver’s is committed to providing a safe and secure work environment. Therefore, all employees of Carpet Weaver’s are subject to drug and/or alcohol testing.

Post Offer/Pre-Employment Drug Testing: All applicants subject for hire by Carpet Weaver’s are required to take a pre-employment drug screen. Employment with Carpet Weaver’s will be confirmed only when a negative drug test result has been established by the medical doctor from the assigned facility. Carpet Weaver’s is required to request a pre-employment drug screen only one time in order to reject or grant the applicant employment. Carpet Weaver’s will determine the date and time of the drug screen and the facility at which it will be conducted. All test results are confidential. Any applicant refusing to take a pre-employment drug screen will not be employed. Applicants testing positive for drugs will be denied employment.

Drug and/or Alcohol Testing for Accident or Unsafe Practice: Employees involved in on-the-job accidents or who engage in unsafe on-duty related activities that pose a danger to others or the overall operation of the Company will be subject to drug and/or alcohol testing. Based on the circumstances of the accident or unsafe act, drug and/or alcohol testing will be initiated for all persons involved, regardless of fault, with the following circumstances (including, but not limited to):

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1. A death or personal injury requiring hospitalization or emergency medical attention, or2. Damage to Carpet Weaver’s property and/or equipment in excess of $100.00.

The required test will be mandatory within a seventy two (72) hour period of notification of the accident or unsafe act. A supervisor will initiate the drug and/or alcohol test, establishing a date, time and location for the procedure. Failure to appear for testing will be considered a refusal and will be grounds for discipline, up to and including, termination. Failure to report an accident and/or injury within a forty-eight (48) hour period of occurrence could result in disciplinary action up to, and including, termination. The inability to pass and/or a positive result from a drug and/or alcohol test will result in an immediate termination of employment.

Commercial Motor Vehicle Drivers: All commercial motor vehicle drivers will be subject to drug testing in accordance to the Department of Transportation. This is in addition to, and not exclusive of, Carpet Weaver’s drug and/or alcohol drug testing policy.

Note: See “Substance Abuse”

Equal Employment OpportunityCarpet Weaver's will provide equal employment opportunity without regard to race, color, sex, age, disability, religion, national origin, marital status, sexual orientation, ancestry, political belief or activity, or status as a veteran.

This policy applies to all areas of employment, including recruitment, hiring, training and development, promotion, transfer, termination, layoff, compensation, benefits, social and recreational programs, and all other conditions and privileges of employment in accordance with applicable federal, state, and local laws.

It is the policy of Carpet Weaver's to comply with all the relevant and applicable provisions of the Americans with Disabilities Act (ADA). Carpet Weaver's will not discriminate against any qualified employee or job applicant with respect to any terms, privileges, or conditions of employment because of a person’s physical or mental disability. Carpet Weaver's also will make reasonable accommodation wherever necessary for all employees or applicants with disabilities, provided that the individual is otherwise qualified to safely perform the duties and assignments connected with the job and provided that any accommodations made do not require significant difficulty or expense.

Management is primarily responsible for seeing that Carpet Weaver's equal employment opportunity policies are implemented, but all members of the staff share in the responsibility for assuring that by their personal actions the policies are effective and apply uniformly to everyone.

Any employees, including managers, involved in discriminatory practices will be subject to discharge.

Note: Throughout this Employee Manual, masculine pronouns such as he, his, or him shall be construed so as to include both sexes.

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Harassment PolicyCarpet Weaver's intends to provide a work environment that is pleasant, healthful, comfortable, and free from intimidation, hostility or other offenses, which might interfere with work performance. Harassment of any sort – verbal, physical, or visual – will not be tolerated.

What Is Harassment?Harassment can take many forms. It may be, but is not limited to: words, signs, jokes, pranks, intimidation, physical contact, or violence. Harassment is not necessarily sexual in nature.

Sexually harassing conduct may include unwelcome sexual advances, requests for sexual favors, or any other verbal or physical contact of a sexual nature that prevents an individual from effectively performing the duties of their position or creates an intimidating, hostile or offensive working environment, or when such conduct is made a condition of employment or compensation, either implicitly or explicitly.

ResponsibilityAll Carpet Weaver's employees, and particularly managers, have a responsibility for keeping our work environment free of harassment. Any employee, who becomes aware of an incident of harassment, whether by witnessing the incident or being told of it, must report it to their immediate manager or any management representative with whom they feel comfortable. When management becomes aware that harassment might exist, it is obligated by law to take prompt and appropriate action, whether or not the victim wants the company to do so.

ReportingAny incidents of harassment must be immediately reported to his or her manager, Human Resource Director or other management representative. Appropriate investigation and disciplinary action will be taken. All reports will be promptly investigated with due regard for the privacy of everyone involved. Any employee found to have harassed a fellow employee or subordinate will be subject to severe disciplinary action or possible discharge. Carpet Weaver's will also take any additional action necessary to appropriately remedy the situation. No adverse employment action will be taken for any employee making a good faith report of alleged harassment.Carpet Weaver's accepts no liability for harassment of one employee by another employee. The individual who makes unwelcome advances, threatens or in any way harasses another employee is personally liable for such actions and their consequences. Carpet Weaver's will not provide legal, financial or any other assistance to an individual accused of harassment if a legal complaint is filed.

Health ExaminationsCarpet Weaver's reserves the right to require an employee to participate in a health examination to determine the employee’s fitness to perform his/her essential job functions. The company shall pay for all such health exams.

Introductory PeriodYour first 30 days of employment at Carpet Weaver's are considered an Introductory Period, and during that period you will not accrue benefits described in this Manual unless otherwise required

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by law. This Introductory Period will be a time for getting to know your fellow employees, your manager and the tasks involved in your job position, as well as becoming familiar with Carpet Weaver's products and services. Your manager will work closely with you to help you understand the needs and processes of your job.

This Introductory Period is a try-out time for both you, as an employee, and Carpet Weaver's, as an employer. During this Introductory Period, Carpet Weaver's will evaluate your suitability for employment, and you can evaluate Carpet Weaver's. At any time during this first 30 days, you may resign without any detriment to you record. If, during this period, your work habits, attitude, attendance or performance do not measure up to our standards, we may release you. If you take approved time off in excess of five workdays during the Introductory Period, the Introductory Period may be extended by that length of time.

Please understand that completion of the Introductory Period does not guarantee continued employment for any specified period of time, nor does it require that an employee be discharged only for “cause”.

A former employee who has been rehired after a separation from Carpet Weaver's of more than one (1) year is considered an introductory employee during their first 30 days following rehire.

Non-Compete AgreementCertain new employees, such as outside/field salespeople and others may be required to sign a Non-Compete Agreement prepared by our attorneys as a condition of employment.

Outside EmploymentWhat you do on your free time is your own business. However, if you are employed by Carpet Weaver's in a full-time position, Carpet Weaver's will expect that your position here is your primary employment. Any outside activity must not interfere with your ability to properly perform your job duties at Carpet Weaver's.

If you were thinking of taking on a second job, notify your manager immediately. He or she will thoroughly discuss this opportunity with you to make sure that it will not interfere with your job at Carpet Weaver's nor pose a conflict of interest. While an employee of Carpet Weaver’s you cannot engage in employment that will result in direct or indirect competition with Carpet Weaver’s.

Proof of U.S. Citizenship and/or Right to WorkFederal regulations require that 1) before becoming employed, all applicants must complete and sign Federal Form I-9, Employment Eligibility Verification Form; and 2) all applicants who are hired need to present documents of identity and eligibility to work in the U.S.

Salesperson AgreementWhen you are hired in or promoted to the position of salesperson, you will be asked to sign an agreement that cites certain terms and conditions regarding you position as a salesperson. The purpose of this agreement, among other things, is to clearly establish the terms for commission payment, territory assignment, etc.

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Standards of ConductBy accepting employment with us, you have a responsibility to Carpet Weaver's and to your fellow employees to adhere to certain rules of behavior and conduct. The purpose of these rules is not to restrict you rights, but rather to be certain that you understand what conduct is expected and necessary. When each person is aware that he or she can fully depend upon fellow workers to follow the rules of conduct, then our organization will be a better place to work for everyone.

Unacceptable ActivitiesGenerally speaking, we expect each person to act in a mature and responsible way at all times. However, to avoid any possible confusion, some of the more obvious unacceptable activities are noted below. Your avoidance of these activities will be to your benefit as well as to the benefit of Carpet Weaver's. If you have any questions concerning any work or safety rule, or any of the unacceptable activities listed, please see your manager for an explanation.

Occurrences of any of the following violations, because of their seriousness, may result in immediate dismissal without warning. This list is not all-inclusive and, not withstanding this list, all employees remain employed at will.

Willful violation of any company rule; any deliberate action that is extreme in nature and is obviously detrimental to Carpet Weaver’s efforts to operate profitably.

Willful violation of security or safety rules or failure to observe safety rules or Carpet Weaver's safety practices; failure to wear required safety equipment; tampering with Carpet Weaver's equipment or safety equipment.

Negligence or any careless action, which endangers the life or safety of you or another person.

Being intoxicated or under the influence of a controlled substance while at work; use or possession or sale of a controlled substance in any quantity while on company premises except medications. (The use of prescribed medications by a physician that do not impair work performance are not a violation of this policy.)

Unauthorized possession of dangerous or illegal firearms, weapons or explosives on company property or while on duty.

Engaging in criminal conduct or acts of violence, or making threats of violence toward anyone on company premises or when representing Carpet Weaver’s; fighting, or horseplay or provoking a fight on company property, or negligent damage of property.

Insubordination or refusing to obey instructions properly issued by your manager pertaining to your work.

Threatening, intimidating or coercing fellow employees on or off the premises – at any time, for any purpose.

Engaging in an act of sabotage; willfully or with gross negligence causing the destruction or damage of company property, or the property of fellow employees, customers, suppliers, or visitors in any manner.

Theft of company property or the property of fellow employees; unauthorized possession or removal of any company property, including documents, from the premises without prior permission from management; unauthorized use of company equipment or property for personal reasons; using company equipment for profit.

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Dishonesty; willful falsification or misrepresentation on your application for employment or other work records; lying about sick or personal leave; falsifying reason for a leave of absence or other data requested by Carpet Weaver's; alteration of company records or other documents.

Violating the non-disclosure agreement; giving confidential or proprietary Carpet Weaver's information to competitors or other organizations or to unauthorized Carpet Weaver's employees; working for a competing business while a Carpet Weaver's employee; breach of confidentiality of personnel information.

Malicious gossip and/or spreading rumors; engaging in behavior designed to create discord and lack of harmony; interfering with another employee on the job; willfully restricting work output or encouraging others to do the same.

Immoral conduct or indecency on company property or at anytime, anywhere when serving as a representative of Carpet Weaver’s.

Occurrences of any of the following activities, as well as violations of any Carpet Weaver's rules or policies, may be subject to disciplinary action, including possible immediate dismissal. This list is not all-inclusive and, notwithstanding this list, all employees remain employed “at will”.

Unsatisfactory or careless work; failure to meet production or quality standards as explained to you by your manager; mistakes due to carelessness or failure to get necessary instructions.

Any act of harassment, sexual, racial or other; telling sexist or racial-type jokes; making racial or ethnic slurs.

Leaving work before the end of a workday or not being ready to work at the start of a workday without approval of your manager; stopping work before time specified for such purposes.

Sleeping on the job, loitering or loafing during work hours. Excessive use of company telephone for personal calls. Leaving your workstation during your work hours without the permission of your

manager, except to use the rest room. Smoking in restricted areas and/ or at non-designated times, as specified by department

rules, or in a customer’s home. Creating or contributing to unsanitary conditions. Posting, removing or altering notices on any bulletin board on company property without

permission of an officer of Carpet Weaver's. Failure to report an absence or late arrival; excessive absence or lateness. Filling your own order or invoicing or ringing up your own order. Buying company merchandise for resale. Obscene or abusive language toward any manager, employee or customer; indifference or

rudeness towards a customer or fellow employee; any disorderly/antagonistic conduct on company premises.

Speeding or careless driving of a forklift or any other company vehicles. Failure to immediately report damage to, or an accident involving company equipment. Soliciting during working hours and/or in working areas; selling merchandise or

collecting funds of any kind for charities or others without authorization during business hours, or at a time or place that interferes with the work of another employee on company premises.

Failure to maintain a neat and clean appearance in terms of the standards established by your manager; any department from accepted conventional modes of dress or personal grooming; wearing improper or unsafe clothing.

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Disciplinary ActionsUnacceptable behavior, which does not lead to immediate dismissal, may be dealt with in one or more of the following ways:

Verbal WarningWritten Warning

SuspensionDismissal

Written warnings will include the reasons for the manager’s dissatisfaction and any supporting evidence. You will have an opportunity to defend your actions and rebut the opinion of your manager at the time the warning is issued. Disciplinary actions may also include suspensions or other measures deemed appropriate to the circumstances.

All pertinent facts will be carefully reviewed, and the employee will be given a full opportunity to explain his or her conduct before any decision is reached.

DismissalEmployment and compensation with Carpet Weaver's is “at will” in that they can be terminated with or without cause, and with or without notice, at any time, at the option of either Carpet Weaver's or yourself, except as otherwise provided by law.

If your performance is unsatisfactory due to lack of ability, failure to abide by Carpet Weaver's rules or failure to fulfill the requirements of your job, you will be notified of the problem. If satisfactory change does not occur, you may be dismissed. Some incidents may result in immediate dismissal.

Wage & Salary PoliciesIt is Carpet Weaver's desire to pay wages and salaries that are competitive with other employers in the market place in a way that will be motivational, fair and equitable, yet variable with individual and company performance and in compliance with all applicable statutory requirements.

You are employed by Carpet Weaver's and will be carried directly on our payroll. No person may be paid directly out of petty cash or any other such fund for work performed.

Deductions From Paycheck (Mandatory)Carpet Weaver's is required by law to make certain deductions from your paycheck each time one is prepared. Among these are your federal, state, and local income taxes, and your contribution to Social Security as required by law. These deductions will be itemized on your check stub. The

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amount of the deductions may depend on your earnings and on the information you furnish on your W-4 form regarding the number of dependents/exemptions you claim. Any change in name, address, telephone number, marital status or number of exemptions must be reported to your manager or the Human Resources Department immediately, to ensure proper credit for tax purposes. The W-2 form you receive for each year will indicate precisely how much of your earnings were deducted for these purposes.

Any other mandatory deductions to be made from your paycheck, such as court-ordered attachments, will be explained whenever Carpet Weaver's is ordered to make such deductions. Some states may require other payroll deductions.

Note: See “Wage Assignments (Garnishments)” later on in this section for further information.

Funds you owe to Carpet Weaver's may be deducted from current wages without prior notification or written approval from you.

Error In PayEvery effort is made to avoid errors in your paycheck. If you believe an error has been made, tell your manager immediately. He or she will take the necessary steps to research the problem and to assure that any necessary correction is made properly and promptly.

Overtime PayFrom time to time, it may be necessary for you to perform overtime work in order to complete a job on time. All overtime must be pre-approved by your manager. When it is necessary to work overtime, you are expected to cooperate as a condition of your employment. There are two types of overtime work:

1. Scheduled Overtime: Scheduled overtime work is announced in advance and generally will involve an entire department or operation. This type of overtime becomes part of the required workweek of the people who are members of the department or operation. If you need to be excused from performing scheduled overtime, please speak with your manager. He or she will consider your situation and the requirements of the department or operation in deciding whether you may be excused from performing the scheduled overtime.

2. Incidental Overtime: Incidental overtime is not scheduled; it becomes necessary in response to extenuating circumstances. It is extra time needed to complete work normally completed during regular hours. Incidental overtime may become necessary when an illness or emergency keeps co-workers from being at work as anticipated. It may require you to return to the workplace for emergency work. The opportunity to perform incidental overtime will be given first to the employee who normally performs the task. If that employee cannot perform the overtime, the manager will offer the overtime to a suitable qualified person who is available to perform the overtime work.

If you are a “non-exempt” employee and you perform overtime work, you will be paid one and one-half (1 ½) times your regular hourly wage for any time over the equivalent of 40 hours per week. If, during the week, you were away from the job because of a job-related injury, paid holiday, jury duty, vacation taken in single-day increments, or paid sick time, those hours not worked will not be counted as hours worked for the purpose of computing eligibility for overtime pay.

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Work Performed on Company HolidaysFull-time “non-exempt” employees who work on a Company holiday will be deemed to have worked overtime on that day and will be paid one and one-half (1 ½) times their regular rate for hours worked regardless of the number of hours they work that workweek.

Note: See “Holiday Policies” in the “Benefits” section of this manual for further information.

Inclement Weather & “Acts of God”Unfortunately, you will not be paid when work is not available due to circumstances not within Carpet Weaver's control; the following are examples of such circumstances.

Operations cannot commence or continue due to threats to employees or property or when recommended by civil authorities.

Public utilities fail to supply electricity, water, or gas, or there is a failure in the public utilities, or sewer system.

The interruption of work is caused by an “Act of God” (inclement weather, fire, flood, earthquake, avalanche, etc.) or some other cause not within Carpet Weaver's control.

Termination & Severance Pay -Sales Carpet Weaver's does not pay severance pay. When you leave Carpet Weaver's, you will be paid for jobs, which were shipped prior to the date you leave Carpet Weaver's employ.

Termination & Severance Pay-Hourly/Salaried Carpet Weaver’s does not pay severance pay. When you leave Carpet Weaver’s, you will be paid for hours worked up to the date you leave Carpet Weaver’s employ.

Time Cards/RecordsBy law, we are obligated to keep accurate records of the time worked by “non-exempt” employees.

This is done by written or electronic documentation provided to the payroll office by the office manager or store manager at each location.

This documentation is the only way the payroll department knows how many hours you worked and how much to pay you. This documentation indicates when you arrived and when you departed. Time not worked for lunch and for brief absences like a doctors or dentist’s appointment will be noted, as well. All employees are required to keep the office advised of their departures from and returns to the premises during the workday.

You are responsible for keeping track of your time. Remember to record you time. If you make an error on your time documentation, you manager must make the correction and you and your manager must initial the correction.

No one may record hours worked for another employee. Tampering with another’s time documentation is cause for disciplinary action, including possible dismissal, of both employees.

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Do not alter another person’s record, or influence anyone else to alter your record for you. In the event of an error in recording your time, please report the matter to your manager immediately.

Wage Assignments (Garnishments)We hope you will manage your financial affairs so that we will not be obligated to execute any court-ordered wage assignment or garnishment against your wages. However, whenever court-ordered deductions are to be taken from your paycheck, you will be notified. Carpet Weaver’s withholds the right to charge a fee for each garnishment or levy executed, based on applicable federal, state and local laws.

According to the Federal Wage Garnishment Act, three (3) or more garnishments may be cause for dismissal.

Note: See “Deductions from Paycheck (Mandatory)” earlier in this section for further information.

Work ScheduleYour manager will provide a schedule of daily work hours to you. You will be notified promptly whenever a change is necessary. Should you have any questions concerning your work schedule, please ask your manager.

Absence or LatenessFrom time to time, it may be necessary for you to be absent from work. Carpet Weaver's is aware that emergencies, illnesses, or pressing personal business that cannot be scheduled outside your work hours may arise. Sick days have been provided for this purpose.

If you are unable to report to work, or if you will arrive late, please contact your manager immediately. Give him or her as much time as possible to arrange for someone else to cover your position until you arrive. If you know in advance that you will need to be absent, you are required to request this time off directly from your manager. He or she will determine when will be the most suitable time for you to be absent from your work.

When you call in to inform Carpet Weaver's of an unexpected absence or late arrival, ask for your manager directly. For late arrivals, please indicate when you expect to arrive for work. If you are unable to call in yourself because of an illness, emergency or for some other reason, be sure to have someone call on your behalf. If your manager is not available when you call, you may leave the information with another manager.

Absence from work for three (3) consecutive days without notifying your manager or the personnel administrator will be considered a voluntary resignation.

AttendanceYou are expected to be ready to work at the beginning of your assigned daily work hours, and you are expected to remain at work until the end of your assigned work hours, except for approved breaks and lunch. When your work takes you away from the store, you must have prior approval and let your manager know where you are going and how long you expect to be gone.

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Sales personnel with sales appointments, measures or other sales related commitments should schedule before or after your assigned floor time, when possible.

*****Be aware that excessive time off could lead to disciplinary action. Note: See “Excessive Absenteeism or Lateness” below for further information.

Meal Periods Sales personnel scheduled to work seven and one-half consecutive hours on the sales floor will be given an uninterrupted meal period of not less than 20 minutes and not more than 30 minutes. Sales personnel scheduled to work the sales floor must remain on the premises for their breaks and/or meal periods unless you have received prior approval from the store manager. Sales personnel scheduled to work for less than seven and one-half hours on the sales floor should schedule your meal time before or after your assigned floor time.

All other personnel scheduled to work seven and one-half hours will be given an uninterrupted meal period of not less than 20 minutes. The length and permissible location of break and/or meal periods will be determined by your supervisor. All other personnel scheduled to work less than seven and one-half hours should schedule your meal time before or after your assigned work schedule.

Excessive Absenteeism or LatenessIn general, five (5) absences in a 90-day period, or a consistent pattern of absence, will be considered excessive, and the reasons for the absences may come under question. Tardiness or leaving early is as detrimental to Carpet Weaver's as an absence. Three (3) such incidents in a 90-day period will be considered a “tardiness pattern” and will carry the same weight as an absence. Other factors, like degree of lateness, may be considered.

Carpet Weaver’s policy allows eligible employees up to twelve weeks of unpaid leave in any rolling twelve-month period, equal to 480 hours, for qualifying events. An employee who is unable to work for more than twelve weeks will be considered automatically terminated at the expiration of the period, regardless of the reason for the inability to work.Note: See “Unpaid Leaves of Absence”

Be aware that excessive absenteeism, lateness or leaving early may lead to disciplinary action, including possible dismissal.

Record of Absence or LatenessIf you are absent because of illness for three (3) or more successive days, your manager may request that you submit written documentation from your doctor. If you are absent five (5) or more days because of illness, you may be required to provide written documentation from a doctor that you are able to resume normal work duties before you will be allowed to return to work. You will be responsible for any charges made by your doctor for this documentation.

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3. Benefits

The Benefits PackageIn addition to receiving an equitable salary and having an equal opportunity for professional development and advancement, you may be eligible to enjoy other benefits, which will enhance your job satisfaction. We are certain that you will agree that the benefits program described in this Manual represents a very large investment by Carpet Weaver's, and we trust that you will avoid abusing any of the program’s benefits.

A good benefits program is a solid investment by Carpet Weaver's in its employees. It not only ensures the loyalty of long-time capable employees, it also helps to attract talented newcomers who can help Carpet Weaver's grow. Carpet Weaver's will periodically review the benefits program and will make modifications as appropriate to the company’s condition.

Eligibility for BenefitsIf you are a full-time employee, working an average of over 34 hours per week, you will enjoy all of the benefits described in this manual as soon as you meet the eligibility requirements for each particular benefit.

If you are a part-time employee, you will enjoy only those benefits, which are required by law to be afforded to you, provided that you meet the minimum requirements set forth by law and in the benefit plan(s).

No benefits are available to you during your Introductory Period, except as otherwise provided by law.

Note: See “Introductory Period” in the “Employment” section of this Manual for further information.

Temporary employees are not eligible for benefits.

Paid Leave of Absences

HolidaysAll full-time salaried and hourly employees are eligible for holiday pay.

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You are not eligible to receive holiday pay during your Introductory Period. Nor are you eligible to receive holiday pay if you are a part-time employee or a temporary employee.

Recognized HolidaysThe following eight (8) holidays are recognized by Carpet Weaver's as paid holidays:

New Year’s DayMemorial DayFourth of JulyLabor DayThanksgiving DayThe Friday following Thanksgiving DayChristmas EveChristmas Day

Holiday PoliciesIn order to qualify for holiday pay, you must work the scheduled workday immediately before and after the holiday. Only excused absences will be considered exceptions to this policy.

You are not eligible to receive holiday pay when you are on a leave of absence.

VacationsCarpet Weaver's full-time employee sales-staff are eligible for paid vacation. You are not eligible for paid vacation during your Introductory Period, nor are you eligible for paid vacation if you are a part-time or temporary employee.

Personal Days Carpet Weaver’s full-time salaried and hourly employees are eligible for paid personal days. You are not eligible for paid personal days during your Introductory Period, nor are you eligible for paid personal days if you are a part-time or temporary employee. Personal days may be used for any purpose, including, but not limited to, illness, vacation and family issues.

Amount of Vacation /Personal Days Carpet Weaver's full-time employee sales-staff are eligible for one week paid vacation beginning in January of the following calendar year in which they complete their Introductory Period and two weeks paid vacation beginning in January of the second calendar year after their hire date. Vacation pay for salesmen and persons receiving overrides will be calculated off the employee’s earnings as shown on his W-2 for the previous calendar year. Salaried and hourly employees are eligible for five days of paid personal days after completing the Introductory Period (see Employment Practices), ten days of paid personal days beginning in January of the following calendar year in which they complete their Introductory Period, and fifteen days of paid personal days beginning in January of the second calendar year after they complete their Introductory Period. Salaried and hourly employees will continue to collect their normal pay, calculated on a 40-hour week, as they utilize their personal days.

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Vacation/Personal Day PoliciesEvery effort will be made to grant you your vacation at the time you desire. However, vacations/personal days cannot interfere with your department’s operation and therefore must be approved by your manager at least one (1) month in advance. If any conflicts arise in requests for vacation/personal time, preference will be given to the employee with the most seniority.

Specific dates of vacation in single-day increments must be established by prior arrangement with your manager. The request will be granted as long as your absence will not seriously affect Carpet Weaver's operations.

Once all vacation/personal days have been exhausted, unexcused absence will be treated as time off without pay for all employees. All non-salaried and non-hourly employees will receive payroll deductions calculated off the employee’s earnings as shown on his/her W-2 from the most recent year available. All hourly and salaried employees will have their pay adjusted accordingly.

Salaried and hourly employees will receive their personal day pay as their time is used. Salesmen and installers may receive their vacation pay upon request with authorization from their manager independent of when they take the time off.

If a company-paid holiday falls during your scheduled vacation period, you will receive an additional day of vacation.

Accumulation RightsVacation time may not be carried over and accumulated in subsequent calendar years. Personal days do not accumulate from year to year nor can they be converted to wages.

Other Paid Leaves

Funeral LeaveAll full-time hourly and salaried employees will receive three (3) days paid funeral leave for immediate family members (spouse, child, parent, sibling, and spouse’s parents). One (1) day of paid funeral leave will be granted in the case of the death of a grandparent, your spouse’s grandparent or spouse’s sibling, or any member of your extended family living in your home. In the event additional time is needed, the employee may draw from his available sick pay. (Refer to the section on Sick Pay for an explanation of time available).

Pay for a funeral leave will be made for actual time lost from work. If the death/funeral leave occurs at a time when work is not scheduled, payment will not be made. If a holiday or part of your vacation occurs on any of the days of absence, you may not receive holiday or vacation pay in addition to paid funeral leave.

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Jury DutyIt is your civic duty as a citizen to report for jury duty whenever called. If you are called for jury duty, we will permit you to take the necessary time off and we wish to help you avoid any financial loss because of such service. If you have completed your Introductory Period, Carpet Weaver's will reimburse you for the difference between your jury pay and your regular pay, not to exceed eight (8) hours per day, for a maximum of ten (10) business days. Commissioned salespeople will be paid the difference between jury duty pay and their pay for the most recent calendar month.

You must notify your manager within forty-eight (48) hours of receipt of the jury summons.

On any day or half-day you are not required to serve, you will be expected to return to work. In order to receive jury duty pay, you must present a statement of jury service and pay to your manager. The court issues this document.

Sick LeaveSalaried and hourly personnel: see “Personal Days/Personal Day Policies”

Full-time employee sales-staff who have completed their Introductory Period are eligible for five (5) sick days per calendar year. These are not to be used as vacation days. An employee must notify his respective store manager in the event a sick day is used. Store managers must forward this information to the payroll office and the time will be deducted from the employee’s sick pay bank. Once all sick days have been exhausted, unexcused illness-related absence will be treated as time off without pay for all employees. All non-salaried and non-hourly employees will receive payroll deductions calculated off the employee’s earnings as shown on his W-2 from the most recent year available.

Sick leave may be used for the purpose of visiting doctors, dentists or other practitioners in their offices. This time may also be used for tending to a serious illness suffered by an employee’s spouse or child, in the event the illness requires your personal time and attention.

Unpaid Leaves of AbsenceOccasionally, for medical, personal, or other reasons, you may need to be temporarily released from the duties of your job with Carpet Weaver's, but may not wish to submit your resignation. Under certain circumstances, you may be eligible for an unpaid leave of absence.

Consult with you’re the Human Resource Department as to what constitutes eligibility.

Family and Medical Leave of AbsenceIn general, a leave of absence is an official authorization to be absent from work without pay for a specified period of time. Eligible employees may be entitled to job-protected family or medical leaves of absence if they are unable to come to work due to pressing family or medical concerns, which meet the requirements of the Family and Medical Leave Act of 1993. Employees shall be

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required to give 30 days notice in the event of a foreseeable medical treatment. To assist us in arranging work assignments during your absence, we ask that you give us prior notice, to the extent possible, of an expected birth or adoption, as well as an indication, to the extent known, of your expected return date. To facilitate your return to work, we also ask that you provide us with two weeks advance notification of your intended return date. Failure to do so may delay your return date.

To qualify for leave under this Act, any full-time or part-time employee must have been actively employed at Carpet Weaver's for at least 12 months, and worked at least 1250 hours in the 12 month period preceding the beginning date of the requested leave.

Each eligible employee shall be granted up to a total of 12 weeks leave during any rolling calendar year.

The following guidelines apply when seeking Family and Medical Leave of Absence:

I. PURPOSE

A. To provide eligible employees with an unpaid leave of absence for up to 12 work weeks for one or more of the following reasons:

1. birth of a child and to care for a newborn;2. placement of a child with the employee for adoption or foster care;3. caring for a spouse, child or parent with a serious health condition;4. the serious health condition of the employee; or5. a covered family member’s active duty or call to active duty in the

Armed Forces.

B. To provide eligible employees with an unpaid leave of absence for up to 26 work weeks for one or more of the following reasons:

1. To care for an injured or ill service member.

This leave may extend to up to 26 weeks in a 12-month period for an employee whose spouse, child, parent or next-of-kin is injured or recovering from an injury suffered while on active military duty as a member of the Armed Forces and who is unable to perform the duties of the service member’s office, grade, rank or rating. An employee is also eligible for this type of leave when the family service member is receiving medical treatment, recuperation or therapy, even if the service member is on temporary disability retired list, for serious injury or illness.

2. This is the only type of FMLA leave that may extend an employee’s leave entitlement beyond 12 weeks to 26 weeks. Other types of FMLA leave are included with this type of leave totaling the 26 weeks. This leave, when combined with other FMLA-qualifying leave may not exceed 26 weeks in a single 12-month period.

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C. This policy adheres to the Family and Medical Leave Act of 1993 (FMLA) and to the expansion of FMLA under The National Defense Authorization Act of 2008. In the event of any discrepancy between and provisions of the Policy and the Act and Expansion, the Act and Expansion shall govern. This policy will apply when the Company has 50 or more employees within 75 miles.

II. ELIGIBILITY

To be eligible for FMLA leave, you must:

have worked for CARPET WEAVERS for at least twelve (12) months; and have worked 1250 hours in the past twelve (12) months.

III. DURATION

The maximum duration for the unpaid family and medical leave of absence is twelve (12) weeks for reason in I.A. above and 26 weeks for leave under I.B. above within a twelve (12) month period. The following guidelines shall determine how that leave may be taken:

1. Birth and care of a newborn child – this leave must be taken within one year of the birth, and CARPET WEAVERS can request it be taken all at one time.

2. Placement of a child for adoption or foster care – this leave must be taken within one year of the placement, and CARPET WEAVERS can request it be taken all at one time.

3. The serious health condition of the employee, spouse, child or parent – this leave may be taken intermittently, or on a reduced hours basis, if necessary for medical reasons.

4. A covered family member’s active duty or call to active duty in the Armed Forces - this leave may be taken intermittently, or on a reduced hours basis, if necessary for any qualifying exigencies arising out of the service member’s current tour of active duty or because the service member is notified of an impending call to duty in support of a contingency operation.

5. To care for an injured or ill service member - this leave may be taken intermittently, or on a reduced hours basis, if necessary for medical reasons.

IV. DEFINITIONS

A. Serious Health Condition – an illness, injury, impairment, or mental or physical condition that involves:1. Any period of incapacity or treatment connected

with inpatient care in a hospital, hospice, or residential medical care facility;

2. Any period of incapacity requiring absence of more than three calendar days from work, school, or other regular daily activities that also involves continuing treatment (or under the supervision of) a health care provider;

3. Any period of incapacity due to pregnancy or prenatal care;

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4. Any period of incapacity due to (or treatment for) a chronic serious health condition;

5. Any period of incapacity that is permanent or long-term due to a condition for which treatment may not be effective; or

6. Any absence to receive multiple treatments (or to recover from such treatments) by, or on referral by, a health care provider for a condition that likely would result in incapacity of more than three consecutive days if left untreated; or

7. Any period of incapacity or treatment in connection with or consequent to inpatient care (i.e., an overnight stay) in a hospital, hospice, or residential medical care facility;

a. Parent – the biological parent of an employee or an individual who stood “in loco parentis” to an employee when the employee was a child.

b. In Loco Parentis – a person with day-to-day responsibility to care for and financially support a child

c. Child – a biological, adopted, or foster child, stepchild, legal wards, or a child or an employee standing “in loco parentis” who is under 18 years of age or otherwise incapable of self care because of a mental or physical disability.

d. Intermittent Leave – leave taken in blocks of time by reducing your daily or weekly schedule up to the twelve (12) week maximum, during a fixed twelve (12) month period.

B. A covered family member - An employee’s spouse, child or parent.

C. Active Duty/Call to Active Duty - An employee’s covered family member has either been notified of an impending call or order to active military duty in the Armed Forces or is already on active duty.

D. Qualifying exigency - may include reasons related to or affected by the family member’s call-up or service such as helping the family member prepare for the departure or caring for children of the service member.

E. Next-of-kin - defined as the closest blood relative of the injured or recovering service member.

V. REQUIREMENTS BY CARPET WEAVERS

Before granting a leave of absence, CARPET WEAVERS reserves the right to require one or more of the following:

1. The requesting employee to take all of any unused paid leave (i.e., vacation, sick leave), worker’s compensation or disability for all or part of the leave

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period. Paid leave time will run concurrently, or at the same time, as qualified FMLA leave time.

2. Qualified FMLA leave due to a covered family member’s active duty or call to active duty in the Armed Forces is to be run concurrently, or at the same time, as the Family Medical Leave Act (see section 5.4).

3. Certification from a health care provider of the employee or family member regarding the serious health condition, setting forth the date on which the condition commenced, its probable duration, the appropriate medical facts to support the certification (e.g., planned medical treatment including dates and probably duration), a statement that the employee is (i) needed to care for the affected family member, or (ii) is unable to perform the functions of his or her position if the employee is the person with the serious health condition. CARPET WEAVERS may require, at its own expense, a second or third opinion and periodic verification in order to continue entitlement of a leave.

4. Employees requesting leave due to a covered family member’s active duty or call to active duty in the Armed Forces must provide proof of the qualifying family member’s call-up or active military service before leave is granted. This documentation may be a copy of the military orders or other official Armed Forces communication.

5. Employees requesting FMLA leave to care for an injured or ill service member must provide certification of the family member’s or next-of-kin’s injury, recovery or need for care. This certification is not tied to a serious health condition as for other types of FMLA leave. This documentation may be a copy of the military medical information, orders for treatment, or other official Armed Forces communication pertaining to the service member’s injury or illness incurred on active military duty that enders the member medically unfit to perform his or her military duties.

6. Upon request for an intermittent or reduced hours leave due to foreseeable medical treatment, CARPET WEAVERS may temporarily transfer the employee to an alternative position for which the employee is qualified having equivalent pay and benefits that better accommodates CARPET Weavers’ needs.

7. That at least thirty (30) days notice be given before a “foreseeable” leave is scheduled to begin. If this is not possible, employees are requested to give notice as soon as practicable. If a leave is for foreseeable medical treatment, CARPET WEAVERS may request the employee make a reasonable effort to schedule the treatment to minimize disruption of normal business operations.

8. All employees requesting FMLA leave due to a covered family member’s active duty or call to active duty in the Armed Forces or to care for an injured or ill service member must provide written notice/request for leave with an explanation of the reason(s) for the needed leave. Leave may

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commence as soon as the individual receives the call-up notice. If the leave is foreseeable, the above procedures must be followed.

9. All employees while on leave will be required to furnish Carpet Weaver’s with periodic reports of your status and intent to return to work every month or as established at the time of request.

10. When an employee has exhausted twelve weeks of FMLA time during a rolling calendar year, employment with Carpet Weaver’s will be terminated. An employee who is unable to work for more than twelve weeks will be considered automatically terminated at the expiration of the period, regardless of the reason for the inability to work.

VI. BENEFIT STATUS

Employees on an approved leave will be entitled to continue their health benefits under the same terms and conditions that applied before the leave commenced. To continue optional coverage (optional life, AD&D, and Disability), the employee must continue to make any contributions that he or she made to the plan before taking the leave. Failure of the employee to pay his or her share of the premiums may result in loss of coverage.

With respect to retirement plans, any period of family and medical leave will be treated as continued service for purposes of vesting and eligibility to participate.

Employees not returning to work at the end of the leave period will be offered continued health coverage through COBRA. Employees may be responsible for any health insurance premiums paid by CARPET WEAVERS during the leave if the employee does not return to work at the end of the leave.

VII. RETURN TO WORK

Returning employees will not lose any benefits or seniority accrued prior to the approved leave.

Educational Leave of AbsenceAn educational leave of absence may be approved if the desired curriculum is of mutual benefit to you and to Carpet Weaver's. Your respective store manager must be informed of all such leaves of absence in advance in order to seek approval.

Military Leave of AbsenceIf you are a full-time employee and are inducted into the U.S. Armed Forces, you will be eligible for re-employment after completing military service, provided:

1. You show your orders to your manager as soon as you receive them.2. You satisfactorily complete your active duty service.

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3. You enter the military service directly from your employment with Carpet Weaver's.4. You apply for and are available for re-employment within ninety-days (90) after

discharge from active duty. If you are returning from up to six (6) months active duty for training, you must apply within a reasonable time (usually thirty-days (30)) after discharge.

Military Reserves or National Guard Leave of AbsenceEmployees who serve in U.S. military organizations or state militia groups may take the necessary time off without pay to fulfill this obligation, and will retain all of their legal rights for continued employment under existing laws upon completion of service and application for re-employment. These employees may apply unused earned vacation time to the leave if they wish; however, they are not obliged to do so.

You are expected to notify your manager as soon as you are aware of the dates you will be on duty so that arrangements can be made for replacement during this absence.

Insurance CoverageCarpet Weaver's is interested in the health and well being of both you and your family. A comprehensive health and life insurance program is available for you and your family. We provide group insurance underwritten by a national insurance carrier. After completion of your Introductory Period, you become eligible for coverage. At that time, you may choose to accept the insurance coverage, or not.There are several benefits available. Consult with your Human Resource department for the type of coverage.

If you choose insurance coverage, our insurance provider supplies a booklet describing your benefits; a copy of this will be given to you when you join the program.

Carpet Weaver's will pay a portion of the premium for health and dental insurance coverage on the employee. An employee is responsible for the remaining portion of the premium for his own coverage, plus 100 percent of the premiums paid for coverage of eligible dependents through payroll deduction.

In the event of your termination of employment with Carpet Weaver's or loss of eligibility to remain covered under our group health insurance program, you and your eligible dependents may have the right to continue coverage under our health insurance program for a limited period of time at your or their own expense. Consult the Human Resource Department for details.

Disability InsuranceCarpet Weaver’s offers Short-Term and Long-Term Disability Plans.After completion of your Introductory Period, you may become eligible for coverage. At that time, you may choose to accept the insurance coverage, or not.

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If a full-time Carpet Weaver’s employee becomes disabled and unable to work for a prolonged period of time due to a non-occupational illness or injury, income continuation benefits may be available during the leave of absence under our Short-Term and Long-Term Disability Plans.

Carpet Weaver's will pay a portion of the premium required for this coverage. Premiums paid by the employee will be deducted on a pre-tax basis.

Medical documentation, to the satisfaction of the insurer, may be required for all periods of time during which Short-Term Disability benefits are requested. Carpet Weaver's reserves the right to require independent medical verification of an employee’s inability to work, based on a medical exam by a physician chosen by and paid for by Carpet Weaver's.

Carpet Weaver’s classifies pregnancy as any other medically disabling condition, and will provide reasonable leave for all employees for the period of disability as determined by the associate and her physician. When ready to return to work, the employee will be reinstated to her original job or a similar level position providing circumstances have not so changed as to make it impossible or unreasonable to do so. At all times our maternity leave policy will comply with the State and Federal laws.

If your disability, other than pregnancy, prevents you from working for longer than twelve (12) weeks, when you are ready to return to work we will do our best to reinstate you to your position or a similar position, but we cannot guarantee that your job or any job will be available.

Any questions regarding pregnancy/disability leave should be directed to the Human Resource Department.

Life InsuranceIf you are a regular full-time employee of Carpet Weaver's, you will receive term life insurance of $15,000. This insurance is payable in the event of your death from any cause, at any time or place, while you are insured. Payment will be made in a lump sum or in installments to the beneficiary, as designated by you. You may change your beneficiary whenever you wish by submitting the appropriate documents to the Human Resource Department. Refer to the literature provided by our insurance company for details on your life insurance coverage.

Termination of InsuranceYour insurance will terminate when the insurance policy terminates, when you fail to make an agreed contribution to premium when due, when you cease to be eligible for coverage under the terms of our group insurance program, or when you cease to be employed as a regular full-time employee eligible for the insurance.

Government Required Coverage

Worker’s CompensationCarpet Weaver's provides Worker’s Compensation Insurance which covers employees for work related illness or on-the-job injury. If you are injured on the job, you must report the incident to

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your supervisor immediately. If the injury is determined to be work related, accident reports must be completed and filed with the Human Resource Department.

Every Carpet Weaver's employee is protected by Worker’s Compensation. Coverage begins the first minute you’re on the job and continues anytime you’re working for Carpet Weaver's. You don’t have to work a certain length of time, and there’s no need to earn any minimum amount of wages before you’re protected.

All injuries, no matter how slight, must be reported immediately to your manager or supervisor. Failure to report an accident and/or injury within a forty-eight (48) hour period of occurrence could result in disciplinary actions up to and including termination.

You must tell your manager what, where, when and how it happened – enough information so that he or she can arrange medical treatment and complete the necessary reports. In an emergency, you may go directly to one of the medical facilities nearby. Later, you may be required to furnish your manager with written statements regarding the on-the-job accident so that we may accurately document the incident, and so you may receive all the benefits to which you are entitled. Failure to do this could result in loss of benefits and disciplinary actions, up to and including, termination. Employees involved in on-the-job accidents or who engage in unsafe on-duty related activities that pose a danger to others or the overall operation of the Company will be subject to drug and/or alcohol testing.

Note: See Drug and/or Alcohol Testing Policy

Prompt reporting is the key. Benefits are automatic, but nothing can happen until your employer knows about the injury. Insure your right to benefits by reporting every injury, no matter how slight. Even a cut finger can be disabling if an infection develops. If the injury is very serious (one where you won’t be able to work for a year or more) you may be eligible for additional benefits from Social Security. For information contact the nearest office of the Social Security Administration, or discuss your situation with the claims representative of Carpet Weaver's Worker’s Compensation Insurance carrier.

Employees, returning to work after being absent due to an injury, must report to their manager prior to beginning work, and must bring a doctor’s clearance for returning to duty.

Unemployment CompensationCarpet Weaver's pays a percentage of its payroll to the Unemployment Compensation Fund according to Carpet Weaver's employment history. If you become unemployed, you may be eligible for unemployment compensation, under certain conditions, for a limited period of time.

401k PlanAll regular full-time employees and part-time employees who are at least 21 years old and work at least eight hundred (800) hours per year are eligible to participate in this plan.

Participation and contribution by the employee and Carpet Weaver's will commence on the first day in January or July of the calendar year following the completion of six (6) months service to the company. For example, an employee employed by Carpet Weaver's between January 1, 2011, and June 30, 2011, will be eligible to participate in the plan beginning January 1, 2012, if all

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other requirements have been met. Employees employed by Carpet Weaver's between July 1, 2011, and December 31, 2011, will be eligible to participate in the plan beginning July 1, 2012.

Carpet Weaver's contributions are discretionary. At the current time, there are no Company contributions. An employee may contribute up to the annual limit set by the Internal Revenue Service. The amount each employee invests in the plan and in what funds may be changed by contacting Carpet Weaver's plan administrator or contacting the Provider.

• Lets you defer a percentage of your pay by making 401(k) elective deferral contributions under the plan.• May provide more money for you through discretionary contributions.• Provides that you are 100% vested in your account resulting from any money you contribute• Provides that your vesting percentage depends on your service for the part of your account resulting from discretionary contributions• Gives you tax deferral on any earnings until you receive them as benefits. If you choose to make Roth elective deferral contributions, earnings on such contributions will not be taxable if received in a qualified distribution.• Offers different ways to receive your benefits. You choose the right way for you.

If you are already making 401(k) elective deferral contributions, you are on your way to a more secure future. If you aren't making 401(k) elective deferral contributions, there's still time to start.

In the event of any questions, concerns or issues with your 401(K) plan, contact the Human Resource Department.

Note: This is a summary of the Carpet Weaver's Profit Sharing Plan; the complete details of the Plan will be given to you when you become eligible.

Other Benefits

Training (Attending Seminars/Training Sessions) From time to time, Carpet Weaver's may arrange to have both formal and informal training programs to enable you to progress in your technical knowledge of our business. Several times a year, employees are selected to attend factory schools, workshops, or training programs. All or a portion of the expenses for off-premises training will be paid for by Carpet Weaver's depending on the nature of the course. Check with your manager for details.

If you become aware of a particular seminar that you believe is appropriate for enhancing your skills (and/or those of other employees), please bring it to the attention of your manager. Since these seminars are usually offered only at specified times in a geographical area, please be sure to notify your manager as far in advance as possible. This way, he or she can attempt to schedule workloads to accommodate your (and/or other employees) desire to attend the seminar.

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Employee PurchasesCarpet Weaver's employees who have completed their Introductory Period are allowed to purchase materials for personal use at a reduced cost plus freight. Items purchased by employees for use other than personal use (items for friends, relatives, etc.) will be marked up 30 percent over landed-cost (these orders are to be kept to a minimum). Ordering, pick-up, and storage of all orders are the employee’s responsibility. Employees are expected to pay for purchases at the time of delivery.

Someone other than yourself must check out merchandise, and you must have an invoice or sales receipt for all packages before leaving the building. The purchase may be paid for by check (with invoice number on the check) or charged. If you charge the purchase, you must pay the account in full within thirty-days (30) or the outstanding balance will be deducted in full from your next paycheck. Non-stock items must be paid for in advance and are not returnable or exchangeable.

Occasionally, product is designated for disposal, such as discontinued product of minimal numbers, returned product that cannot be resold or restocked, damaged product etc. In the event an employee wishes to purchase/remove said product for personal use, authorization must be obtained from store management (in the event the employee is store management, authorization must be obtained from upper management). An invoice will be written to the employee at minimal or, if applicable, at zero cost with a description of the product and why it has been assigned for disposal prior to the removal of the product from the premises.

If said product is removed without authorization and written documentation it will be deemed as theft and dealt with accordingly.

4. Other Policies Borrowing Tools & EquipmentSee “Theft”.

CommunicationsSuccessful working conditions and relationships depend upon successful communication. Not only do you need to stay aware of changes in procedures, policies and general information, you also need to communicate your ideas, suggestions, personal goals or problems as they affect your work.In addition to the exchanges of information and expressions of ideas and attitudes which occur daily, make certain you are aware of and utilize all Carpet Weaver's methods of communication, including this Employee Manual, bulletin boards, e-mail, discussions with your manager, memoranda, staff meetings, etc.

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Company DataAs an employee you may have access to some or all of the Company’s networks, files or data, dependent on you job classification and/or responsibilities. Any authorization to access company networks, files or data is granted only in the furtherance of Carpet Weaver’s business purposes. Any authorization granted, implied or otherwise, to company networks, files or data automatically ceases when the employee has been terminated, tenders a resignation or forms an intent to leave Carpet Weaver’s for any reason-irrespective of whether Carpet Weaver’s has actually blocked or restricted access.

Company MeetingsOn occasion, we may request that you attend a company-sponsored meeting. If this is scheduled during your regular working hours, your attendance is required.

Computer Use Computer use by employees is a privilege that is accompanied by a responsibility to use them in an appropriate manner. By using Carpet Weaver’s supplied information technology facilities and resources, individuals agree to abide by all Carpet Weaver’s policies and procedures as well as current federal, state and local laws. The following list is representative of, but not limited to, the responsibilities of Carpet Weaver’s employees when using computers.

Do not monitor, access, tamper with or destroy data created or used by another Carpet Weaver’s employee.

Do not use Carpet Weaver’s computer resources in a manner, which may subject the company to financial responsibilities.

Do not use Carpet Weaver’s computers for personal financial gain. Do not use Carpet Weaver’s computers to access, view, store or distribute obscene or

pornographic material. Do not use Carpet Weaver’s computer resources in a way that is not consistent with the

mission of the company, misrepresents the company or violates any company policy.

Computers furnished to employees are the property of Carpet Weaver’s. As such, computer usage and files may be monitored or accessed.

Carpet Weaver’s does not condone the illegal duplication of software. The copyright law is clear. The copyright holder is given certain exclusive rights, including the right to make and distribute copies. Title 17 of the U.S. Code states that “it is illegal to make or distribute copies of copyrighted material without authorization” (Section 106). The only exception is the users’ right to make a backup copy for archival purposes (Section 117). The law protects the exclusive rights of the copyright holder and does not give users the right to copy software unless the manufacturer does not provide a backup copy. Unauthorized duplication of software is a Federal crime. Penalties include fines of as much as $250,000, and jail terms of up to five years.

Even the users of unlawful copies suffer from their own illegal actions. They receive no documentation, no customer support and no information about product updates.

1. Carpet Weaver's licenses the use of computer software from a variety of outside companies. Carpet Weaver's does not own this software or its related documentation

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and, unless authorized by the software manufacturer, does not have the right to reproduce it.

2. With regard to use on local area networks or on multiple machines, Carpet Weaver's employees shall use the software only in accordance with the license agreement.

3. Carpet Weaver's employees learning of any misuse of software or related documentation with the company shall notify the department manager or Carpet Weaver's legal counsel.

4. According to the U.S. Copyright Law, illegal reproduction of software can be subject to civil damages and criminal penalties, including fines and imprisonment. Carpet Weaver's employees who make, acquire or use unauthorized copies of computer software shall be disciplined as appropriate under the circumstances. Such discipline may include dismissal.

Department MeetingsFrom time-to-time, your manager will schedule department meetings before, during, or after work. It’s to your advantage to be at these meetings. They give you and your fellow workers a chance to receive information on Carpet Weaver's events, to review problems and possible solutions, and to make suggestions about your department or your job.

If your attendance at Department Meetings is mandatory, you will be informed in writing. Failure to attend may involve a penalty.

Note: See “Company Meetings” earlier in this section for further information.

Dress Code/Personal AppearancePlease understand that you are expected to dress and groom yourself in accordance with accepted social and business standards, particularly if your job involves dealing with customers or visitors in person. Each manager or department head is responsible for establishing a reasonable dress code appropriate to the job you perform.

A neat, tasteful appearance contributes to the positive impression you make on our customers. You are expected to be suitably attired and groomed during working hours or when representing Carpet Weaver's. A good clean appearance bolsters your own poise and self-confidence and greatly enhances our company image. When working at a customer’s site, please observe what the customer is wearing and dress appropriately.

Personal appearance should be a matter of concern for each employee. If your manager feels your attire is out of place, you may be asked to leave your workplace until you are properly attired. You will not be paid for the time you are off the job for this purpose. Management has the sole authorization to determine an appropriate dress code, and anyone who violates this standard will be subject to appropriate disciplinary action.

Entry After-HoursYou are allowed to enter Carpet Weaver's property after normal working hours for business purposes solely and only with prior notice to management.

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Exit InterviewsIn instances where an employee voluntarily leaves our employ, Carpet Weaver's management would like to discuss your reasons for leaving and any other impressions that you may have about Carpet Weaver's. If you decide to leave, you will be asked to grant us the privilege of an exit interview. During the exit interview, you can express yourself freely. It is hoped that this exit interview will help us part friends, as well as provide insights into possible improvements we can make. All information will be kept strictly confidential and will in no way affect any reference information that Carpet Weaver's management will provide another employer about you.

Expense ReimbursementYou must have your manager’s written authorization prior to incurring an expense on behalf of Carpet Weaver's. To be reimbursed for all authorized expenses, you must submit an expense report/voucher accompanied by receipts and approved by your manager. Please submit your expense report/voucher to your manager. All expense reports/vouchers are to be submitted by the 10th of the month following the date of the incurrence of such expenses. If expense reports/vouchers are not filed in this time frame Carpet Weaver’s reserves the right to deny payment of such expenses.

If you are asked to conduct company business using your personal vehicle, you will be reimbursed at the current rate. Please submit this expense on your monthly expense report/voucher.

First AidFederal law (OSHA) requires that we keep records of all illnesses and accidents that occur during the workday. The Illinois Worker’s Compensation Act also requires that you report any illness or injury on the job, no matter how slight. If you hurt yourself or become ill, please contact your manager for assistance. If you fail to report an injury, you may jeopardize your right to collect worker’s compensation payments as well as health benefits. OSHA also provides for your right to know about any health hazards, which might be present on the job. Should you have any questions or concerns, contact the Human Resources Department or your manager.

GrievancesOur goal is to maintain a comfortable working environment for everybody. We do this in several ways:

By treating each of you as an individual and encouraging your maximum development.

By recognizing that each of you is essential to the success and growth of Carpet Weaver's.

By maintaining direct communications with all of our employees and ensuring that each and every one of you can speak directly and openly with our management team.

We believe that this type of communication, without interference from any outside party, is best for all concerned. Therefore, when you wish to express your problems, opinions, or suggestions, you will always find an open door and an attentive ear.

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As time goes by and Carpet Weaver's grows, we will continue to listen and respond to your questions and comments.

HousekeepingNeatness and good housekeeping are signs of efficiency. You are expected to keep your work area neat and orderly at all times, including putting away any samples returned to the store by customers.

Easily accessible trash receptacles are located throughout the building. Please put all litter in the appropriate receptacles and containers.Always be aware of good health and safety standards, including fire and loss prevention.

Please report anything that needs repairing or replacing to your manager immediately.

Inspection of PackagesCarpet Weaver's reserves the right to inspect all packages or closed containers brought into or taken out of the work area.

Layoff & RecallIn the unlikely event of a reduction in workforce, employees will be laid off based on skills and abilities as well as seniority. Please understand that if the skills and abilities of two employees are equal, seniority will be the determining factor in the layoff decision.

However, when it’s necessary to recall employees from layoff status, recall will be in reverse order to the layoff. Recall will be made by mail to your last known address or by telephone call. Failure to respond to the recall within two (2) days of notice will be considered a voluntary resignation. Laid off employees must keep Carpet Weaver's informed of any change in mailing address or telephone number. Employees will lose their seniority if laid off for more than three (3) months.

If you leave the area, plan to leave the area or you are unreachable for a period of time, please feel free to contact your manager or the Human Resources Department to let us know you are interested in returning to work.

Open Door Policy & CounselingNormally, you will be expected to use the Grievance Procedure outlined earlier in this Manual to resolve a problem. However, if the problem or complaint is of a personal nature, or a very delicate matter, you may meet first with any member of management, including the President, to discuss it. He or she will decide if you should first discuss the problem with your immediate manager. If so, you will be directed to use the Grievance Procedure. If the complaint, suggestion, or question is of such a nature that the Grievance Procedure would hamper resolution, the management person you contact will take the appropriate action.

Parking LotYou are encouraged to use the parking areas designated for our employees. Please keep in mind that the parking spaces adjacent to or in front of our building(s) are for customers and visitors only. Remember to lock your car every day and park within the specified areas.

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Courtesy and common sense in parking will avoid accidents, personal injuries, damage to your vehicle and to the vehicles of other employees. If you should damage another car while parking or leaving, immediately report the incident, along with the license numbers of both vehicles and any other pertinent information you may have, to your manager.

Personal Phone Calls & MailOur telephone bills can be astronomical. Please keep personal phone calls to a minimum - they must not interfere with your work. You are permitted to make limited local area calls on company telephones for essential personal business during lunch or “break” periods only. Please do not abuse this privilege. Emergency calls regarding illness or injury to family members, changed family plans, or calls for similar reasons may be made at any time. Incoming urgent calls will be directed to you.

Please don’t use Carpet Weaver's as a personal mailing address, and do not put personal mail in the stacks that are to run through the postage meter. Although the amount may seem small, it is still considered theft.

Privacy Many employees are provided storage, desks and/or offices during their employ at Carpet Weaver’s. This is not your personal property. The company reserves the right to enter into the offices, desks and storage of its employees to obtain and/or search for Carpet Weaver’s property or contraband. Any personal information unrelated to Carpet Weaver’s about which an employee has a privacy concern should not be stored at Carpet Weaver’s.

ReferencesAs a matter of practice Carpet Weaver's does not respond to requests for references beyond confirmation of employment, your position and length of employment. As an employee, do not under any circumstances respond to any requests for information regarding another employee unless it is part of your assigned job responsibilities. If it is not, you should forward any reference requests to the Human Resources Department for response.

ResignationWhile we hope both you and Carpet Weaver's will mutually benefit from your continued employment, we realize that it may become necessary for you to leave your job with Carpet Weaver's. If you anticipate having to resign your position with Carpet Weaver's, professional courtesy suggests you notify your manager in writing at least two (2) weeks in advance of the date that you must leave.

Resolving ProblemsWhenever you have a problem or complaint, we expect you to speak up and communicate directly with us. If the issue that concerns you involves the application of company policy, or the administration of discipline, or some other formal complaint, you can take the following steps:

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1. First, talk to you immediate manager. Your manager is most familiar with you and your job and is, therefore, in the best position to assist you. Your manager works closely with you, and is interested in seeing that you are treated fairly and properly.

2. If your manager cannot help you resolve the matter, you can speak to someone in the Human Resources Department who will give your problem or complaint immediate consideration.

3. If the Human Resources Department feels that the situation warrants further review, a representative of that department will ask a member of senior management for assistance.

Remember, it is always best to resolve problems right away. Little problems tend to turn into big problems; facts become confused; resentment and anger builds up. It is always best to get thing off your chest before they get out of hand.

Return of Company PropertyAny Carpet Weaver's property issued to you, such as product samples, tools or uniforms must be returned to Carpet Weaver's at the time of your dismissal or resignation, or whenever a member of management requests it. You are responsible to pay for any lost or damaged items.

Safety RulesSafety is everybody’s business. Safety is to be given primary importance in every aspect of planning and performing Carpet Weaver's activities. We want to protect you against industrial injury and illness, as well as minimize the potential loss of production.

Please report all injuries (no matter how slight) to your manager immediately, as well as anything that needs repair or is a safety hazard.

Remember, failure to adhere to these rules will be considered serious infractions of safety rules and will result in disciplinary actions.

Note: Refer to Carpet Weaver's Safety and Health Program Manual for additional information.

SecurityMaintaining the security of Carpet Weaver's buildings and vehicles is every employee’s responsibility. Develop habits that insure security as a matter of course. For example:

Always keep cash properly secured. If you are aware that cash is insecurely stored, immediately inform the person responsible.

Know the location of all alarms and fire extinguishers, and familiarize yourself with the proper procedure for using them, should the need arise.

When you leave Carpet Weaver's premises make sure that all entrances are properly locked and secured.

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SmokingIn keeping with Carpet Weaver’s intent to provide a safe and healthful environment for our employees, and in accordance with the Illinois Clean Indoor Air Act, smoking in any of Carpet Weaver’s locations is prohibited. If you smoke, there are designated areas outdoors for you to enjoy a short break. Smoking is permitted only in these designated areas. Cigarette butts and other smoking debris must be disposed of safely and without littering.

Please remember to conform to our customer’s smoking policies when working at a customer’s site. Never smoke in a customer’s home.

Solicitations & DistributionsSolicitation for any cause during working time and in working areas is not permitted. You are not permitted to distribute non-company literature in work areas at any time during working time. Working time is defined as the time assigned for the performance of your job and does not apply to break periods and meal times. Working areas do not include the lunchroom or the parking areas. Solicitation during authorized meal and break periods is permitted so long as it is not conducted in working areas. However, employees are not permitted to sell chances, merchandise or otherwise solicit money, contributions or signatures without management approval.

Persons not employed by Carpet Weaver's are prohibited from soliciting or distributing literature on company property.

Social Media Policy Just as the internet has changed our world forever, social media has changed the way people communicate. Carpet Weaver’s views social media and networking sites as powerful tools to strengthen our brand and to further your personal reputations as staffing experts.

Social media can take many different forms, including internet forums, blogs & micro blogs, online profiles, wikis, podcasts, pictures and video, email, instant messaging, music-sharing, and voice over IP, to name just a few. Examples of social media applications are LinkedIn, Facebook, MySpace, Wikipedia, YouTube, Twitter, Yelp, Flickr, Second Life, Yahoo groups, Wordpress, ZoomInfo – the list is endless.

When you are participating in social networking, you are representing both yourselves personally and Carpet Weaver’s. It is not our intention to restrict your ability to have an online presence and to mandate what you can and cannot say. We believe social networking is a very valuable tool and continue to advocate the responsible involvement of all Carpet Weaver’s employees in this space. While we encourage this online collaboration, we would like to provide you with a company policy and set of guidelines for appropriate online conduct and to avoid the misuse of this communication medium.

Policy Guidelines:

Do not post any financial, confidential, sensitive or proprietary information about Carpet Weaver’s or any of our clients and candidates.

Speak respectfully about our current, former and potential customers, partners, employees and competitors. Do not engage in name-calling or behavior that will reflect

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negatively on your or Carpet Weaver’s reputations. The same guidelines hold true for Carpet Weaver’s vendors and business partners.

Beware of comments that could reflect poorly on you and the company. Social media sites are not the forum for venting personal complaints about supervisors, co-workers, or the company.

As a Carpet Weaver’s employee, be aware that you are responsible for the content you post and that information remains in cyberspace forever.

Use privacy settings when appropriate. Remember, the internet is immediate and nothing posted is ever truly private nor does it expire.

If you see unfavorable opinions, negative comments or criticism about yourself or Carpet Weaver’s, do not try to have the post removed or send a written reply that will escalate the situation. Forward this information to our internal Human Resources and Marketing Departments.

If you are posting to personal networking sites and are speaking about job related content or about Carpet Weaver’s, identify yourself as a Carpet Weaver’s employee and use a disclaimer and make it clear that these views are not reflective of the views of Carpet Weaver’s. “The opinions expressed on this site are my own and do not necessarily represent the views of Carpet Weaver’s.”

The Carpet Weaver’s Companies Social Networking Policy

Many sites like Facebook and Twitter blur the lines between business and personal. Keep this in mind and make sure to have a balance of information that shows both your professional and personal sides. And always balance negative with positive comments.

Be respectful of others. Think of what you say online in the same way as statements you might make to the media, or emails you might send to people you don’t know. Stick to the facts, try to give accurate information and correct your mistakes right away.

Do not post obscenities, slurs or personal attacks that can damage both your reputation as well as Carpet Weaver’s.

When posting to social media sites, be knowledgeable, interesting, honest and add value. Carpet Weaver’s outstanding reputation and brand is a direct result of our employees and their commitment to uphold our core values of Integrity, Dedication, Teamwork and Excellence.

Do not infringe on copyrights or trademarks. Don’t use images without permission and remember to cite where you saw information if it’s not your own thoughts.

Be aware that you are not anonymous when you make online comments. Information on your networking profiles is published in a very public place. Even if you post anonymously or under a pseudonym, your identity can still be revealed.

If contacted by the media refer them to the Human Resource Department.

Carpet Weaver’s may monitor content out on the web and reserves the right to remove posts that violate this policy.

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Users who violate the Policy may be subject to discipline, up to and including termination of employment. If you have any questions about this policy or a specific posting out on the web, please contact Human Resources.

Substance AbuseCarpet Weaver's has a vital interest in maintaining safe, healthful, and efficient working conditions for its employees. 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, as well as our customers.

Carpet Weaver's also recognizes that its own health and future is dependent upon the physical and psychological health of its employees. Accordingly, Carpet Weaver's has established the following guidelines with regard to use, possession or sale of alcohol or drugs:

The manufacture, possession, use, distribution, sale, purchase, or transfer of, or being under the influence of, alcohol or illegal drugs is strictly prohibited while on Carpet Weaver's premises or while performing company business. Holiday gifts of alcohol, which are given or received by employees, but are not opened or consumed on company premises, although not encouraged, would not be considered a violation of this policy.

Off-the-job alcohol or illegal drug use which could adversely affect an employee’s job performance or which could jeopardize the safety of other employees, the public or company facilities, or where such usage could jeopardize the security of company finances or business records, or where such usage adversely affects customers’ or the public’s trust in the ability of the company to carry out its responsibilities, will not be tolerated. Employees who are involved in or suspected of involvement in off-the-job drug activity will be considered in violation of this policy.

Employees undergoing prescribed medical treatment with a controlled substance that may affect the safe performance of their duties are required to report this treatment to their manager through their personal physician.

Carpet Weaver's recognizes that alcoholism/drug abuse is a form of illness that is treatable in nature. The company shall not discriminate against employees based on the nature of their illness. No employees shall have their job security threatened by their seeking of assistance for a substance abuse problem. The same consideration for referral and treatment that is afforded to other employees having non-drug/alcohol related illnesses shall extend to them.

Every effort shall be made to provide early identification of a substance abuser and to work with and assist the employee in seeking and obtaining treatment without undue delay.

Early identification of the substance abuser shall be based upon job performance and related criteria, as well as resulting impairment to job activities. The manager of the employee shall bring such information to the attention of the designated representative for further evaluation. An employee who voluntarily seeks treatment for a substance abuse problem, which requires a leave of absence for treatment, shall be granted such leave of absence and further may be eligible for benefits under the specifications of existing insurance policies.

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Nothing in this policy is construed to prohibit the corporation from its responsibility to maintain a safe and secure work environment for its employees or from invoking such disciplinary actions as may be deemed appropriate for actions of misconduct having arisen out of the abuse of alcohol or drugs or both.

TheftTheft is largely self explanatory and well understood – it is taking something that does not belong to you. According to Illinois criminal law, theft is when a person takes property from someone else without their permission with the intent to use, conceal, abandon, or just deprive the original owner of having it.

It is also considered theft if you knowingly possess stolen property even if you did not steal it.

Carpet Weaver’s will not tolerate theft of any type. We consider theft to be the unauthorized use of company services or facilities or the taking of any company property for personal use. The following list of examples is not all-inclusive, but provides illustrations of several activities that are unacceptable.

1. Use of company copy machines for personal use. The office copiers are not provided as a free service to employees. If you wish to use a company copier for personal use, please follow the established procedure for reimbursement to Carpet Weaver's. Failure to do so is a form of property theft.

2. Use of computers. Carpet Weaver's personal computers (the personal computers in the office, or laptops made available for work away from the office) are to be used exclusively for business purposes unless you receive permission from your manager. Permission will be given for the use of personal computers during non-business hours so long as you supply your own diskettes.

3. Purchase of company products. Carpet Weaver's offers employees a wide selection of the products distributed by Carpet Weaver's at a discount. The discount privilege is offered for the use of employees and the members of their immediate family. Under no circumstances should company products be removed from the premises unless accompanied by a receipt from Carpet Weaver's. Employees are permitted to buy company products at a discount for personal use or to give as gifts, but it is an abuse of the discount privilege to buy items from Carpet Weaver's on behalf of people outside your immediate family. Carpet Weaver's considers such behavior a form of theft and violators will be treated accordingly.

4. Taking of company property. No item purchased or supplied by Carpet Weaver's should ever be removed from company premises without express authorization of your immediate manager and the proper paper work associated with the situation. This rule applies to all company property including, but not limited to, inventory, equipment, tools, computers, and even pens and paper. All employees may be subject to random searches as they leave company facilities. Your manager has been given detailed instructions on the circumstances in which he or she can authorize you to borrow company equipment or to take samples of your work home. A check out procedure will be used, and if you fail to return any item in a timely manner you will be subject to disciplinary action for theft.

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Unauthorized possession or removal of company property is a very serious offense. Employees violating this policy will be subjected to discipline up to and including possible dismissal and prosecution.

Traffic ViolationsIf you are authorized to operate a company vehicle in the course of your assigned work, or if you operate your own vehicle in performing your job, you will be considered completely responsible for any accidents, fines or traffic violations incurred. Your manager will advise you on what to say and do (and what not to say and do) in the event of a vehicular accident.

Use of Company VehicleThe use of company vehicles for personal use is strictly prohibited.If you are authorized to use a Carpet Weaver's vehicle for company business, you must adhere to the following rules:

1. You must be a licensed driver.

2. You are responsible for paying any moving violation tickets. Also, please park appropriately – Carpet Weaver’s will not pay parking violations.

3. You must not allow persons not authorized or employed by Carpet Weaver's to operate or ride in a company vehicle.

4. Prior to operation of any company vehicle, your manager will train you on the appropriate steps to take if you are involved in an accident – filling out the accident report, getting names of witnesses, etc.

Note: See “Driver’s License & Driving Record” in the “Employment” section of this Manual and “Traffic Violations” earlier in the section for further information.

Violations of PoliciesYou are expected to abide by the policies in this Manual. Failure to do so will lead to appropriate disciplinary action. A written record of all policy violations is maintained in each individual’s personnel file.

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