New Employee Guide to Success

BENEFITS Taking care of our employee owners is a top priority. We show our appreciation through providing a wide variety of benefits for employees and their families. Below is a general overview of some available benefits programs. It should not be relied upon to fully determine coverage, so please see the Employee Information Handbook or the appropriate Summary Plan Document for full details. These benefits are subject to change and are not guaranteed in any way. Employee Stock Ownership Plan (ESOP) • An employee retirement plan fully funded by the company. Annually, the company contributes shares of its own stock to an account for each employee which our record-keeper sets up. As an employee accumulates seniority, they become more “vested”. This allows the employee to have increased access to the shares in their account. Then when employees leave the company, they receive cash in exchange for the company stock in their account, which Palmer-Donavin buys back at market value. This means that the better Palmer-Donavin does, the more the employee owner’s account will be worth. • Employees become 20% vested after 2 years, 40% after 3 years, 60% after 4 years, 80% after 5 years, and are fully vested after year 6. Stock allocations are based on income. • Check out the ESOP Corner on InsidePD for more information. Reward for Profits • A quarterly bonus based on the profitability of the company over a rolling 12-month period. The purpose of the bonus is to reward those employees that have contributed to the profitability of the company. • The Board of Directors sets a “return on assets” goal. If we reach 120% of the goal, the Board may, at its discretion, issue a reward for profits bonus equal to 120% of a week’s pay to eligible employees. • To be eligible to receive a bonus, you must have completed at least four months of service prior to the date the check is issued. Additionally, you must be in good standing and employed on the day the check is issued to receive the bonus.

Paid Time Off • Begins accumulating on the first day of employment and can be used after 90 days of employment. • Does not expire (will roll over to the next year) but cannot exceed 112 hours. • .0586 hours of PTO are earned per regular hour worked. • 7 company-paid holidays per year.

401K • Palmer-Donavin will match up to 25% of the first 10% the employee puts in. • Employees are automatically enrolled at 5% after 6 months of service and the contribution automatically increases 2% per year with a max of 10%. Employee Assistance Program – WorkLifeMatters • A free, confidential program that provides support and guidance for matters that range from personal issues you might be facing to information on every day topics that affect your life, such as education, dependent care and care giving, legal & financial, lifestyle & fitness management, and working smarter. Support and guidance is just a phone call away, 24/7: 1-800-386-7055.

Product Discounts • Employee discounts on all products we sell for personal use.

Health, Life, & Disability Insurance • Employees working at least 30 hours per week are eligible for health, life, and disability insurance. Please review the attached Annual Benefits Guide carefully so you can choose the coverage that’s right for you and your family.

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