4. Employee Benefits

Curtis cares about the well-being of its people and therefore provides a comprehensive employee benefits program. This summary is not inclusive or comprehensive in outlining all benefits, provisions, conditions, limitations and/or coverage. It is designed to give you an overview of the general types of benefits that you receive as a Curtis employee; you should consult the plan documents for more information. In the event of any conflict between this handbook and the terms of any plan documents, the plan documents will govern. Benefit programs, coverage, and eligibility are subject to alteration or elimination by Curtis at its sole discretion.

4.1 Eligibility

A Comprehensive Benefits Plan is provided to eligible employees and their qualified dependents, who may include spouse, dependent children and qualified domestic partner.

4.2 Medical Insurance

Once a year, during the open enrollment period, you will have an opportunity to review all the medical plans offered by Curtis and select the plan that best suits your needs.

4.3 Dental Insurance

Curtis currently offers a Dental Plan. The Dental Plan pays 100% of reasonable and customary charges for general diagnostic and preventive services, 85% of Basic Restorative Endodontics, Basic Periodontics, Maintenance of Prothodontics and Oral Surgery, 50% of Major Restorative, Major Peridontics and installation of Prosthodontics, up to a maximum of $1,500 per year for each employee and eligible dependent. The plan also covers orthodontic treatment for eligible dependent children, at 50% with a $1000 lifetime maximum.

4.4 Vision Insurance

Vision insurance is available for eligible employees, their qualified dependents and/or qualified domestic partners at cost. The in-network benefit provides for eye exams, prescription glasses or contact lenses every twelve (12) months with applicable co-pays. The out-of-network benefit provides reimbursement for services according to a reimbursement schedule with the same co- payments and limitation as services through the network doctors.

4.5 Life and AD&D Insurance

Basic Life and Accidental Death and Dismemberment insurance is provided to eligible employees. The amount of life insurance coverage and AD&D coverage is equal to 1½ times salary, up to $600,000.

4.6 Voluntary (Supplemental) Life and AD&D Insurance

Additional Voluntary Life and AD&D insurance is available for eligible employees and their qualified dependents at cost. The maximum employee benefit is the lesser of five (5) times salary up to $500,000. Eligible spouse benefit is the lesser of $250,000 or 50% of employee’s voluntary life insurance amount. The maximum benefit for eligible dependent children under age 19, or 26 if they are full-time students, is $10,000 per child (birth to six (6) months is $500). Employees must purchase Voluntary Life and AD&D for themselves in order to cover their eligible dependents.

4.7 Workers’ Compensation Insurance

Curtis provides a comprehensive workers’ compensation insurance program at no cost to employees.

Employees who sustain work-related injuries or illnesses should inform their supervisor immediately. No matter how minor an on-the-job injury may appear, it is important that it be reported immediately.

Receipt of workers’ compensation benefits may run concurrently with the leave under Curtis’ Family and Medical Leave policy. Additionally, during the time of worker’s compensation coverage, an employee will accrue additional PTO hours and time of service credit for a maximum of twelve (12) weeks.

4.8 Short-Term Disability Insurance

Employees are eligible to receive benefits for loss of earnings for non-occupational disabilities due to illness, injury or maternity under New York State law. Disability insurance provides a continuation of income for a maximum of twenty-six (26) weeks. Receipt of short-term disability benefits may run concurrently with leave under Curtis’ Family and Medical Leave policy. After an initial waiting period of seven days, employees may be entitled to temporary cash benefits of up to 50% of their average weekly wage with a certain maximum per week. During the time of short-term disability, an employee will accrue additional PTO hours and time of service credit for a maximum of twelve (12) weeks. When an employee’s salary continuation is exhausted under short-term disability, employees have an option to use accrued PTO hours, not to exceed 100% of Salary.

4.9 Long-Term Disability Insurance

An employee who suffers six months or more of total disability, under regular care of a legally qualified physician, is eligible for benefits under the Long-Term Disability Insurance Plan. During the time of long-term disability, an employee will not accrue any additional PTO or time-of-service credits. You will receive 60% of your basic monthly earnings prior to becoming disabled to a maximum of $6,000 per month, payable to normal retirement age as stated in the 1983 revision of the United States Social Security Act.

4.10 Flexible Spending Account

As part of the Company’s Flexible Benefits Plan, we currently offer two types of employee- funded Flexible Spending accounts to regular full-time employees – one for unreimbursed Health Care expenses and another for Dependent Care expenses. There is a six-month waiting period before a new employee is eligible to enroll in either plan. Existing employees may enroll in an FSA plan during their designated benefits election period, which is just before the beginning of the calendar year or immediately following a qualified life status change. Plan participants may elect an annual amount of flexible dollars (which will be deducted pro rata on a pre-tax basis from each paycheck) to pay for eligible health care and dependent care expenses incurred during the plan (calendar) year that are not reimbursable from any other source.

Eligible health care expenses may include medical or dental insurance deductibles, co- payments, and out-of-pocket costs for vision care, etc. According to IRS regulations, if eligible medical or dental expenses that you incur during the calendar year are less than your elected annual amount of flex dollars for that year, you may carry over up to $500 of unused money to the following year. Balances over $500 must be forfeited.

Eligible dependent care expenses include expenses incurred to care for your eligible dependents. Examples of eligible expenses are daycare, after school care, and elder care.

The administrator of Curtis’ Flexible Spending Accounts is guided by specific rules which are covered in the Summary Plan Description. Please contact the Human Resources department for a copy of the Summary Plan Description and additional information on our Flexible Spending Accounts.

4.11 Educational Reimbursement

The tuition reimbursement plan provides eligible employees with the opportunity to maintain or improve job-related skills through participation in course work at accredited colleges, universities, and other educational institutions. As part of this program, Curtis will reimburse you for tuition, books, and registration fees for courses leading to a degree related to your work or for courses relating to your work. The amount to be reimbursed is for tuition and fees only and is grade dependent. Prior approval of the course by your supervisor and the Human Resources Manager is required.

For additional information on the Educational Reimbursement program, please contact the Human Resources department.

4.12 Employee Assistance Program

The Employee Assistance Program (EAP), is a voluntary, confidential, and professional service that provides information, counseling, and referral services to all full-time and part-time employees and their dependents who may be experiencing stress or difficulties in their personal lives. Please contact Human Resources for additional information or questions about our EAP program.

4.13 Anniversary Recognition

Curtis recognizes that the continuous service of all employees is an important ingredient for the Company’s success. Therefore, in recognition of continued service, each employee receives an extra day of pay on his/her anniversary hiring date. On the eleventh and subsequent anniversaries, the employee receives an additional $100 payment.

4.14 Employee Referral Program

Employee referrals are one of the best sources of future Curtis team members. To recognize and encourage these referrals, Curtis offers bonus awards for all qualified referrals which result in successful hires. Please refer to the Refer a Candidate program outline or contact Human Resources for more information.

4.15 Paid Time Off (PTO) Program

The Paid Time Off (PTO) plan is a benefit to provide employees maximum flexibility in using paid time off. PTO replaces vacation, sick/personal time and floating holidays with PTO days that may be used by employees for vacation, illness, emergencies, preventative health or dental care, time off to care for dependents, personal business, or other excused absences.

All regular full-time and part-time employees are eligible to participate in the PTO plan. Eligibility begins with the first day of employment. PTO must be accumulated before it may be used.

Employees earn PTO time based on length of service, as shown on the chart below. PTO time is accrued monthly and the employee’s account is credited on the first day of the following month for each calendar month. Part-time employees accrue PTO time at a prorated rate. During any family or medical leave of absence (i.e. Worker’s Comp, Short and Long-Term Disability, FMLA, New York State Paid Family Leave, etc.) employees will accrue PTO time and time of service credit for a maximum of twelve (12) weeks. The calculation of PTO will end for any leave of absence that exceeds twelve (12) weeks in a rolling calendar year.

The maximum accrual for each employee is two times the amount of PTO earned per year. Once the maximum has been reached, the employee no longer accrues PTO until the balance has been reduced.

PTO will be calculated based on the employee’s date of hire and regular work schedule, excluding overtime hours worked. If applicable, annual PTO rates will be increased in the month the anniversary date occurs.

Planned time off requests must be made to the employee’s supervisor/manager for approval as far in advance as possible (no less than twenty-four (24) hrs.). Requesting time off is the responsibility of the employee. Approval and scheduling of time off are the responsibility of the supervisor.

Any unplanned absence, tardiness or early departure must be reported in accordance with the Absentee Procedures and Attendance Standards policy.

During periods of operational shutdowns to meet the business needs, the company reserves the right to require employees to use PTO time to cover time not worked, unless otherwise prohibited by applicable law.

Upon termination of employment, the employee will be paid for all unused, accrued PTO time at the employee’s rate of pay at the time of termination. PTO cannot be cashed out during employment nor can the employee’s employment be extended by using unused PTO time.

4.16 Holidays

The Company publishes a yearly holiday schedule that indicates specific dates for holiday closings, normally equal to ten (10) paid holidays per year.

4.17 401(k) Plan

Part of the Curtis retirement plan is a tax-deferred retirement savings plan. All full-time and part-time employees are eligible to participate immediately for employee contributions, and for employer contributions beginning on whichever of the following quarterly dates first falls after the employee has completed six (6) months of employment: March 1, June 1, September 1, and December 1. There is no hours requirement thereafter. As a safe harbor plan Curtis contributes an amount equal to 3% of each participant’s eligible bi-weekly earnings, and each year determines additional discretionary contributions of up to 2% for a maximum employer contribution of 5%. Additionally, participants are allowed to contribute up to 50% of their annual base salary up to the annual IRS contribution limit. Participants are 100% vested in employee and employer account balances from their date of entry into the 401(k) plan.

4.18 Jury and Witness Duty

All employees summoned to serve as jurors or witnesses in legal proceedings will be given the necessary time-off, with pay. Jury and witness duty will be granted to any full-time or part-time employee who has been notified to serve. Employees will be compensated by payment of an amount equal to the difference between their jury duty pay and their regular salary. You are expected to report to work during any regularly scheduled work hours if your jury or witness duty schedule permits. Please present the subpoena or other notice to your supervisor and Human Resources department immediately upon receipt.

Make arrangements with your supervisor as soon as you receive your summons. Upon the employee’s return, the employee must notify Human Resources and must submit a signed Certificate of Jury Service indicating the number of days served in addition to any jury payments that were provided. PTO hours and time of service credits will continue to accrue during Jury and Witness Duty for a maximum of twelve (12) weeks.

An employee charged with a crime, who is required to attend a judicial proceeding relating to that charge, is not covered by this policy.

4.19 Leave for Victims of Crimes

Employees are given the necessary time off without pay to attend or participate in a court proceeding in accordance with state law, including an employee who is a victim of a crime and attending or participating in legal proceedings pertaining to the crime (including consulting with the district attorney handling the prosecution or otherwise exercising his or her rights as a victim under state law) or if the employee is legally compelled to attend a judicial proceeding as a witness. Employees must notify their supervisor immediately of their need for leave under this policy.

The Company reserves the right to request verification of the employee’s participation in legal proceedings, such as a copy of the summons or subpoena.

Leave under this policy will be unpaid, except exempt employees may be provided time off with pay when necessary to comply with state and federal wage and hour laws.

Retaliation against an employee who requests witness or crime victim leave is strictly prohibited. The Company will also comply with any applicable local law in areas outside of New York.

4.20 Time Off To Vote

On days when elections for public office includes elections for sheriff, school board, district attorney, and all primary and general elections) are scheduled throughout the state, county, city or town in which the employee works or lives, schedules will be adjusted as needed to ensure that all employees have the opportunity to vote. Any employee whose work schedule does not provide him or her four (4) consecutive hours to vote while polls are open will be granted up to three (3) paid hours of excused time-off in order to vote. Any additional time-off will be without pay.

No employee will be penalized or retaliated against for requesting time-off to vote.

4.21 Bereavement Leave

In the unfortunate event of death in the immediate family, employees will be granted a leave of absence of up to three (3) days with pay. (Immediate family is defined as mother, father, sister, brother, wife, husband, registered qualified domestic partner, daughter, son, grandmother, grandfather, mother-in-law and father-in-law). These days must be taken consecutively within a reasonable time of the day of the death or day of the funeral, and may not be postponed. These days can not be used for other purposes.

4.22 Bone Marrow and Organ Donation Leave

Employees who work an average of twenty (20) hours or more each week are eligible to receive up to twenty-four (24) work hours of unpaid leave to donate bone marrow or organs.

Please provide your supervisor with written physician verification of the purpose and length of each leave. For more information regarding this leave, please see Human Resources.

Exempt employees may be provided time-off with pay when necessary to comply with state and federal wage and hour laws. The Company will also comply with any applicable local law in areas outside of New York.

4.23 Blood Donation Leave

Employees who work an average of twenty (20) or more hours per week are entitled to up to three hours of unpaid leave in any twelve (12) month period to donate blood.

The twelve (12) month period will be based on the calendar year.

Employees must give “reasonable notice” of their intent to take leave to give blood.

Exempt employees may be provided time off with pay when necessary to comply with state and federal wage and hour laws.

For more information regarding this leave, please see Human Resources.

The Company will also comply with any applicable local law in areas outside of New York.

4.24 Military Leave

An employee who is a member of the armed forces who needs a leave of absence in connection with military service should notify Human Resources as soon as possible. Employees who are required to fulfill military obligations in any branch of the Armed Forces of the United States or in state military service will be given the necessary time off and reinstated in accordance with applicable law.

The time-off will be unpaid, except where applicable law requires otherwise. Exempt employees may be provided time-off with pay when necessary to comply with state and federal wage and hour laws.

Accrued PTO (if any) may be used for this leave if the employee chooses, but the company will not require the employee to use PTO. Military orders should be presented to your supervisor and arrangements for leave made as early as possible before departure.

Employees are required to give advanced notice of their service obligations to the company unless military necessity makes this impossible. You must notify your supervisor of your intent to return to employment based on requirements of the law. Your benefits may continue to accrue during the period of leave in accordance with state and federal law.

4.25 Family Military Leave

Employees in New York who work an average of twenty (20) hours or more per week who are the spouse of a member of the Armed Forces of the United States, National Guard or Reserves who has been deployed during a period of military conflict to a combat theatre or combat zone are eligible to take up to ten days of unpaid family military leave during the military service member’s leave or deployment.

The Company will also comply with any applicable local law regarding family military leave in areas outside of New York.

4.26 Volunteer Emergency Responder Leave

During the time that an emergency exists following a declaration of emergency under the law, the company will grant a “volunteer emergency responder” an unpaid leave of absence while engaged in the actual performance of his or her duties as a volunteer firefighter or an enrolled member of a volunteer ambulance service unless the company determines that the employee’s absence would impose an undue hardship on company business.

The company will only grant leave when it has previously received written documentation from the head of the fire department or volunteer ambulance service documenting the employee’s status as a volunteer firefighter or member of a volunteer ambulance service.

Upon request, the employee must provide the company with a notarized statement from the head of the volunteer fire department or volunteer ambulance service certifying the period of time that the employee responded to any emergency.

For more information regarding this leave, contact Human Resources.

Exempt employees may be provided time off with pay when necessary to comply with state and federal wage and hour laws.

The Company will also comply with any applicable local law in areas outside of New York.

4.27 Family and Medical Leave

The Family and Medical Leave Act (“FMLA”) provides eligible employees the opportunity to take unpaid job-protected leave for certain specific reasons. The maximum amount of leave an employee may use is either twelve (12) or twenty-six (26) weeks within a twelve (12) month period depending on the reasons for the leave.

4.27.1 Leave Policy and Eligibility Requirements

To be eligible for FMLA leave employees must have worked for Curtis at least twelve (12) months, and for at least 1,250 hours in the last twelve (12) months and must be employed at a Company worksite where fifty (50) or more employees are employed within a seventy-five (75) mile radius. The twelve (12) month period in which you may take the twelve (12) or sixteen (16) weeks leave will be measured as a rolling twelve (12) month period dating back from the date you use any family/medical leave.

All periods of absence from work due to or necessitated by service in the uniformed services are counted in determining FMLA eligibility.

A. Reasons for Leave

You may take family/medical leave for any of the following reasons:

1. The birth of a child (up to twelve (12) weeks, to be completed within one (1) year of the child’s birth).
2. The placement of a child with you for adoption or foster care (up to twelve (12) weeks), to be completed within one (1) year of the child’s placement.
3. To care for a spouse, child or parent with a serious health condition.
4. Because of your own serious health condition.
5. To care for a Covered Service member (including the Reserves and National Guard) with a serious injury or illness related to certain types of military service (up to twenty-six (26) weeks) (see Military Related FMLA Leave below for more details).
6. To handle certain “qualifying exigencies” arising out of the fact that the employee’s spouse, child or parent is on covered active duty or call to covered active duty status in the Uniformed Services (including the Reserves and National Guard) (up to twelve (12) weeks) (see Military-Related FMLA Leave below for more details).

A “Serious Health Condition” is an illness, injury, impairment, or physical or mental condition that involves either an overnight stay in a medical care facility, or continuing treatment by a health care provider for a condition that either prevents the employee from performing the functions of the employee’s job, or prevents the qualified family member from participating in school or other daily activities. Subject to certain conditions, the continuing treatment requirement includes an incapacity of more than three (3) full calendar days and two (2) visits to a health care provider, or one (1) visit to a health care provider and a continuing regimen of care; an incapacity caused by pregnancy or prenatal visits, a chronic condition, or permanent or long-term conditions; or absences due to multiple treatments. Other situations may meet the definition of continuing treatment.

B. Military-Related FMLA Leave

Employees may take up to twenty-six (26) weeks of unpaid FMLA leave in a single twelve (12) month period, beginning on the first day that the employee takes FMLA leave to care for a covered service member (including the National Guard and Reserves) who is undergoing medical treatment, recuperation, or therapy, is otherwise in outpatient status, or is on the temporary disability retired list for a serious injury or illness incurred in the line of duty, or a serious injury or illness that existed prior to service and that was aggravated by service in the line of duty on active duty. Next of kin is defined as “the nearest blood relative of that individual.” Such leave may be taken intermittently. Military Caregiver leave is also available to care for a spouse, child, parent, or next of kin who is a veteran member of the Armed Forces within the five (5) years preceding the need for the family member’s treatment.

C. “Qualified Exigency”

A “qualifying exigency” includes but is not limited to: issues arising from a military member’s short notice deployment; military events and related activities; childcare and related activities arising from the active duty or call to active duty status of a military member; caring for a military member’s parent who is incapable of self-care when the care is necessitated by the member’s covered active duty; making or updating financial and legal arrangements to address a covered military member’s absence or acting as a covered military member’s representative in certain legal proceedings; attending counseling provided by someone other than a health care provider, the need for which arises from the active duty or call to active duty status of the covered military member; taking up to fifteen (15) calendar days of leave to spend time with a covered military member who is on short-term temporary, rest and recuperation leave during deployment; and attending to certain post-deployment activities.

D. Amount of Leave

The maximum amount of leave that may be taken in a twelve (12) month period for all reasons combined is twelve (12) weeks, except that leave to care for a Covered Service member, the maximum combined leave entitlement is twenty-six (26) weeks, with leaves for all other reasons constituting no more than twelve (12) of those twenty-six (26) weeks.

E. Spouses

Spouses who are both employed by Curtis who request leave because of the birth or placement of a child for adoption or foster care may only take a combined total of twelve (12) weeks leave during any twelve (12) month period.

F. Notice of Leave

If your need for family/medical leave is foreseeable, you must give Curtis at least thirty (30) days prior written notice. If this is not possible, you must at least give notice as soon as practicable. Failure to provide such notice may be grounds for delay of leave.

Additionally, if you are planning a medical treatment, you should consult with your supervisor in advance regarding the dates of such treatment. Request for Family/ Medical Leave forms are available from the Human Resources department.

G. Medical Certification

If you are requesting leave because of your own or a covered relation’s serious health condition, you and the relevant healthcare provider must supply appropriate medical certification. Medical Certification forms are available from the Human Resources department. When you request leave, Curtis will notify you of the requirement for medical certification and when it is due (at least fifteen (15) days after you request leave). If you provide at least thirty (30) days notice of medical leave, you should also provide the medical certification before leave begins. Failure to provide requested medical certification within fifteen (15) calendar days, when practicable, may result in the delay of further leave until the certification is provided.

Curtis, at its expense, may require an examination by a second healthcare provider designated by the Company. If the second health care provider’s opinion conflicts with the original medical certification, Curtis, at its expense, may require a third, mutually agreeable, healthcare provider to conduct an examination and provide a final and binding opinion.

H. Reporting While On Leave

You must give notice as soon as practicable (within two business days if feasible) if the dates of leave change, are extended, or initially were unknown. Curtis may require subsequent medical certification.

I. Leave Is Unpaid

Family/medical leave is unpaid leave. However, you may be eligible for short-term disability payments or workers’ compensation benefits under those plans, and/or salary continuation under Curtis’ policy. If you receive these benefits, your leave will be considered “paid leave” for the period you receive these benefits.

If your leave is “unpaid” leave, you will have the option to substitute accrued, unused PTO for “unpaid” FMLA leave.

Your “paid” leave period due to the receipt of workers’ compensation, short-term disability benefits, salary continuation, or the substitution of paid leave time for unpaid leave time does not extend the twelve (12) week leave period. Further, in no case can the substitution of paid leave time for unpaid leave time result in your receipt of more than 100% of your salary. Your family/medical leave runs concurrently with other types of leave (i.e. disability leave, New York Paid Family Leave, etc.). Additionally, you will continue to accrue additional PTO hours and time of service credits during FMLA leave for a maximum of twelve (12) weeks in a rolling calendar year.

J. Health Insurance and Other Benefits

During an approved family/medical leave, Curtis will maintain your health benefits and continue to pay the premiums, including HMO’s, PPO’s, dental, long-term disability and life insurance, as if you continued to be actively employed on the same participation bases as in effect immediately prior to your leave. While on leave, the employee will remain responsible for the employee portion of any premiums, which will be deducted from the employee’s pay during any paid portion of the FMLA leave. During any unpaid portion of the FMLA leave, employees must make arrangements with Curtis to pay for the employee portion of any premiums. If you elect not to return to work at the end of the leave period, you will be required to reimburse Curtis for the cost of the health premiums paid by Curtis for maintaining coverage during your unpaid leave, unless you cannot return to work because of a serious health condition or other circumstances beyond your control.

Use of FMLA leave will not result in the loss of any employment benefit that accrued prior to the start of your leave. While on family/medical leave, you will continue to accrue Paid Time Off and time of service credit for a maximum of twelve (12) weeks in a rolling calendar year. In addition, upon your return to work, you will receive pay for up to three paid holidays that fell during any unpaid family/medical leave. If a bonus is announced while you are on family/medical leave, or you reach a length of service award during your leave, you will receive it upon your return to work. Your next review for a pay adjustment will be postponed for the duration of the leave.

K. Using Leave, Intermittent and Reduced Schedule Leave

Eligible employees may take FMLA leave in a single block of time, intermittently (in separate blocks of time), or by reducing the normal work schedule when medically necessary for the serious health condition of the employee or immediate family member, or in the case of a covered service member, his or her injury or illness.

Eligible employees may also take intermittent or reduced-scheduled leave for military qualifying exigencies. Intermittent leave is not permitted for birth of a child, to care for a newly born child or for placement of a child for adoption or foster care, unless both the employee and Curtis agree to intermittent or reduced schedule leave. Employees who require intermittent or reduced-schedule leave must try to schedule their leave so that it will not unduly disrupt the company’s operations. In addition, while you are on an intermittent or reduced schedule leave, Curtis may temporarily transfer you to an available alternative position which better accommodates your recurring leave and which has equivalent pay and benefits.

L. Returning From Leave

Upon your return from family/medical leave, you will be restored to the position of employment held when the leave commenced or to an equivalent position. However, the FMLA does not entitle a restored employee to any more rights, benefits or employment beyond that to which the employee would have been entitled had the employee not taken leave. Curtis may decline to reinstate certain highly-paid “key” employees under the FMLA. You will be notified if you are considered a “key” employee. If you take leave because of your own serious health condition, you are required to provide medical certification that you are medically able to return to work before you will be permitted to return. Return to Work Medical Certification Forms are available from the Human Resources department. You should provide at least one week’s advance notice of the date of your ability to return to work. This is important so that your work is properly scheduled.

4.28 New York Paid Family Leave (PFL)

New York Paid Family Leave (NY PFL) provides eligible employees who work in New York State with job-protected, paid leave to bond with a new child, care for a family member with a serious health condition, or to help relieve family pressures when a family member is called to active military service. Insurance coverage for NY PFL benefits is included in the Company’s existing disability insurance policy. NY PFL coverage is funded by employee payroll contributions.

When an employee returns from NY PFL, the employee will be reinstated to his/her prior position of employment, or to a comparable position with comparable pay, benefits and other terms and conditions of employment. The employee, however, will not be entitled to the accrual of any seniority or employment benefits during any period of leave, or any right, benefit or position to which the employee would have been entitled had the employee not taken the leave, unless required by law.

4.28.1 Employee Contributions

NY PFL premiums are paid through employee payroll deductions at the State-mandated rate of your annual wages for the calendar year. PFL deductions will be processed according to our normal payroll schedule on a post-tax basis, not to exceed the annualized statewide average weekly wage. PFL benefits paid out to employees will be treated as taxable wages in the year in which they are paid.

The maximum employee contribution rate for NY PFL is set each year by the New York State Department of Financial Services. The New York State Average Weekly Wage is also determined each year by The New York State Department of Labor.

A. Eligibility

The eligibility requirements for NY PFL are:

• Employees who work a regular schedule of twenty (20) or more hours per week are eligible after twenty-six (26) consecutive weeks of employment.
• Employees who work a regular schedule of less than twenty (20) hours per week are eligible after working 175 days, which do not need to be consecutive.
• Time spent on PTO days can be counted toward an employee’s eligibility determination.
• Employees are eligible regardless of citizenship and/or immigration status.
• In limited circumstance, employees whose regular work schedules are temporary or seasonal who do not meet the above eligibility requirements may opt out of NY PFL. To opt out of coverage, such employees must complete a waiver, which can be obtained from the Human Resources department.

B. Qualifying Events

New Child

An employee can take NY PFL during the first twelve (12) months following the birth, adoption, or fostering of a child. Expectant mothers cannot take NY PFL for their own pregnancy. NY PFL begins after birth and is not available for an employee’s own prenatal or postnatal medical conditions.

Serious Illness

An employee can take NY PFL leave to care for a close relative with a serious health condition. Close relatives are an employee’s spouse, domestic partner, child and stepchild, parent and stepparent, parent-in-law, grandparent, or grandchild. These relatives can live outside of New York State and even outside the country. An employee cannot take NY PFL for the employee’s own health condition.

A serious health condition is an illness, injury, impairment, or physical or mental condition that involves (i) inpatient care in a hospital, hospice, or residential health care facility, or (ii) continuing treatment or continuing supervision by a health care provider.

Military Active Service Deployment

An employee can take NY PFL because of any qualifying exigency [as interpreted under the federal Family and Medical Leave Act (“FMLA”)] arising out of the fact that the spouse, domestic partner, child, or parent of the employee is on active duty (or has been notified of an impending call or order to active duty) in the Armed Forces of the United States.

An employee cannot use NY PFL for the employee’s own qualifying military event.

Where two spouses or domestic partners both work for the Company, both employees may use NY PFL, but only one employee at a time can use NY PFL to bond with the same child or care for the same family member.

Leave under the NY PFL may be taken in consecutive blocks of time or on an intermittent basis (in increments of no less than one (1) day).

C. Benefits Paid During Leave

Benefits are a percentage of an employee’s average weekly wage, capped at that same percentage of the New York State Average Weekly Wage, as calculated annually by New York State’s Department of Labor.

D. Coordination With Other Leave

An employee may choose to apply PTO during NY PFL but is not required to do so. If an employee chooses to apply paid leave, it must be used in full day increments, to the extent allowed by law. All paid time off applied during a NY PFL leave will run concurrently with the employee’s leave under the NY PFL. The Company may choose to seek reimbursement from its NY PFL insurance carrier for the paid leave benefits the Company provides under its policies, to the extent permitted by applicable law.

An employee may not use NY PFL in conjunction with any other type of paid leave to receive more than his or her full salary.

An employee who is receiving Workers’ Compensation benefits will not be eligible for NY PFL for the same period. An employee who is eligible for both disability benefits and NY PFL during the same period of fifty-two (52) calendar weeks shall not receive more than twenty-six (26) total weeks of disability and NY PFL benefits during that period.

E. Other Benefits While on NY PFL

While on NY PFL, employees may continue health insurance while on leave. If an employee contributes to the cost of health insurance, the employee must continue to pay the employee portion of the premium cost while on NY PFL.

Claim Procedure

The Company’s insurance carrier will receive and process claims, make claim determinations and benefit payments. Information on the Company’s insurance carrier can be obtained from Human Resources.

When an employee has a foreseeable need for NY PFL, the employee should provide the Company with not less than thirty (30) days’ notice of the employee’s intention to take leave, before the date the leave is to begin. If the event is not foreseeable, employees must notify the Company as soon as practicable. Additionally, employees taking paid family leave on an intermittent basis (e.g., on certain days, as opposed to a consecutive block of time) must provide the Company with notice as soon as practicable before each day of intermittent leave (or as otherwise agreed to between the employee and his or her supervisor).

Employee Documentation

Forms for requesting NY PFL can be obtained from Human Resources. The specific documentation or additional forms required for each type of leave are described on the forms and at www.ny.gov/PaidFamilyLeave.

Please note that if an employee fails to comply with the notice and documentation requirements, and no unusual circumstances justify the failure to comply, this may result in NY PFL benefits being delayed or denied, to the extent allowed by law.

Enforcement/Employee Rights

If an employee’s request for NY PFL is denied and the employee disagrees with the reason for the denial of a claim, he/she may request to have the denial reviewed by an independent arbitrator. Information explaining how to file a request for arbitration for the denial of NY PFL benefits can be obtained from the Human Resources department.

The Company will not discriminate or retaliate against any employee who has claimed or who has attempted to claim Paid Family Leave benefits. If an employee believes he/she has been discriminated or retaliated against for taking NY PFL, he/she should notify the Human Resources department. Further information may be obtained from www.ny.gov/PaidFamilyLeave.

4.29 Paid Parental Leave Benefit Policy

Curtis’ Paid Parental Leave Benefit Policy recognizes the needs of both parents to have time to bond with their newborn or newly adopted child. We believe all parents should be given time to care and bond with their new child without additional financial hardship that may result from taking time off. This Benefit is not required by law, and is provided at Curtis’ discretion to aid its employees.

To this end, the Company provides six-weeks of fully paid parental leave Benefits to employees following the birth or adoption of a “child” as defined by the federal Family and Medical Leave Act and its regulations (“FMLA”). The six-weeks of Benefits must be used during the sixteen (16) week period immediately following the birth or adoption of the child. For adoption, Benefits may be used before the adoption is finalized if an employee needs to be absent from work for the adoption to proceed (e.g., for travel to another country as part of the adoption process). (Note that an employee who adopts a new spouse’s child or children is not eligible for Benefits under this policy.) Receipt of Benefits under this policy will run concurrently with FMLA, State leave laws and disability leave laws, as applicable.

This Benefit is for mothers, fathers and co-parents, regardless of gender.

4.29.1 Eligibility

Eligible employees must meet the following criteria:

• Be employed with the Company for at least twelve (12) months and have worked at least 1,250 hours during the twelve (12) consecutive months immediately preceding the date the leave would begin.
• Be a full-time or part-time, regular employee.
• Experience a qualifying event, including the birth or adoption of a child.

[NOTE: If an employee does not meet the above criteria prior to going out on leave, but does meet the criteria while out on leave, the Benefit will become available once the criteria have been met, but the Benefit must be used within the first sixteen (16) weeks immediately following the birth or adoption of the child.]

For example, a full-time employee hired on January 1 becomes a parent on November 30. For December, the employee, who is not yet eligible for the Paid Parental Leave Benefit under this policy, uses a combination of accrued PTO, and/or unpaid time off which means as of December 31, the employee has been off one-month. On January 1 (of the following year), the employee has been employed for twelve (12) months and therefore meets the criteria above and is now eligible for this Paid Parental Leave Benefit. This employee would only be able to utilize the Paid Parental Leave Benefit in the sixteen (16) weeks immediately following the November 30 birth of the child (e.g., up to March 22).

4.29.2 Policy Details

• Eligible employees will receive a maximum of six (6) weeks of paid parental leave Benefits for the birth or adoption of child/children within a rolling twelve (12) month period. A multiple birth or adoption (e.g., the birth of twins or adoption of siblings) does not increase the six (6) weeks of total amount of paid parental leave Benefits granted for that event.
• Each week of paid parental leave Benefits are compensated at 100% of the employee’s regular hourly rate based on the employee’s regular schedule, or regular salary, offset by paid state disability or state parental leave benefits. Paid parental leave Benefits will be paid according to the Company’s regular payroll practices at the time.
• Approved paid parental leave Benefits may be used at any time during the sixteen (16) week period immediately following the birth or adoption of the child. Paid parental leave Benefits may not be used or extended beyond this sixteen (16) week time frame or be taken for more than a total of six (6) weeks in a rolling twelve (12) month period. No exceptions.
• Employees may only receive this paid parental leave Benefit during the first sixteen (16) week period following the birth or adoption of the child. Any unused paid parental leave Benefits are not provided at the end of the sixteen (16) week period.
• Paid parental leave Benefits taken under this policy must run concurrently with leave under applicable state leave laws and the Federal Family Medical Leave Act. However, this policy does not provide for any leave of absence rights. All requirements and provisions under the applicable state leave laws and the federal Family Medical Leave Act will apply. Please refer to the medical leave policies in your Employee Handbook for further guidance on applicable state or federal medical leave laws.
• Benefits provided by the Company for Short-Term Disability (see Employee Handbook) are separate from the Benefits provided in this Benefit Policy. However, employees are not eligible to receive Short-Term Disability benefits at the same time as Benefits under this policy, and, Short-Term Disability benefits cannot be used to extend the Benefits under this policy beyond the sixteen (16) weeks.
• The Company will maintain all other benefits for employees while receiving this paid parental leave Benefit period, including medical, PTO, etc.
• If a Company holiday occurs while the employee is receiving paid parental leave Benefits, that holiday will be charged to holiday pay; however, this will not extend the eligibility period beyond the first sixteen (16) weeks following the birth or adoption of the child. Similarly, PTO may not be taken to extend the eligibility period beyond the first sixteen (16) weeks, following the birth or adoption of the child.
• The employee must provide his or her supervisor and HR with notice of the request for leave at least thirty (30) days prior to the proposed date of the leave (or if the leave was not foreseeable, as soon as possible) to be eligible for Benefits under this Policy. The employee must complete the necessary HR forms and provide all documentation as required by the HR department to substantiate the request.
• Upon termination of the individual’s employment at the Company, he or she will not be paid for any unused paid parental leave Benefits.
• Abuse of any aspect of this policy will lead to disciplinary action, up to termination.
• State laws or regulations may supersede the provisions of this policy.

4.29.3 New York State Requirements

In order for New York employees to qualify for the Benefits under this policy, Employees must qualify and receive New York Paid Family Leave insurance benefits from the State of New York, or the New York State Disability Insurance benefits from the State of New York.

Employees will receive a payroll supplement from Curtis equal to the difference between their regular base wages and the “State” Paid Family Leave insurance (“PFLI”) benefits they receive through California or New York Paid Family Leave. If an employee is disabled because of pregnancy, but exhausted her benefits under the Company’s Short-Term Disability Benefits policy, she will receive a payroll supplement from Curtis equal to the difference between her base wages and New York State Disability Insurance benefits she receives. The regular base wages do not include any other compensation (e.g., bonuses, overtime for non-exempt employees, etc.). For example, if an Employee’s weekly salary is $2,000, and receives New York Paid Family Leave insurance in the amount of $1,000 for a week, Curtis will pay the employee the $1,000 difference (subject to standard payroll withholding). In no case, may Employees receive more than 100% of their normal base wages – when combining the State benefit and this Paid Parental Leave Benefit.

4.30 Personal Leave

A personal leave of absence of up to one month may be granted at the discretion of the department manager with the approval of the Human Resources Manager. Personal leave is “unpaid” leave. Employees will be required to substitute accrued, unused Paid Time Off for personal “unpaid” leave. Additionally, the employee will accrue additional PTO hours and seniority credits during personal leave for the first thirty (30) days. While on personal leave, an employee’s job is not protected and the employee’s benefits will be covered for the first thirty (30) days. Once the employee exhausts the first thirty (30) days of benefit coverage, the employee will have an option to elect continuation of coverage at his or her own expense under COBRA. Personal leaves of over one (1) month must have the additional approval of an officer of Curtis. Curtis may require that the request for a leave of absence be in writing, stating the reason for the leave and its expected duration. The reason for the leave will be kept confidential.

An employee must have at least six (6) months of service to be eligible for a personal leave longer than one (1) week, and a year of service to be eligible for a personal leave longer than one (1) month. The maximum leave that can be granted is six (6) months.

4.31 Medical Certificates and the Exclusion of Genetic Information

To comply with the policies in this Handbook regarding leave and other employment accommodations, employees may need to provide the Company with certain medical information regarding the need for leave or accommodation. When an employee provides this information, the Company requests that the employee refrain from providing the Company with any genetic information regarding the employee or his or her family members. Genetic information includes an individual’s family medical history, the results of an individual’s or family member’s genetic tests, the fact that an individual or an individual’s family member sought or received genetic services, and genetic information of a fetus carried by an individual or an individual’s family member or an embryo lawfully held by an individual or family member receiving assistive reproductive services.

4.32 Accepting Other Employment While on Leave

If an employee accepts any other employment or goes into business while on a leave of absence of any type, the employee will be considered to have voluntarily resigned from employment as of the day on which the employee began the leave of absence.

4.33 Salary Continuation

State Disability, Workers’ Compensation, No Fault Insurance and Long-Term Disability all provide partial salary continuation for eligible employees during times of injury or illness beyond a seven (7) day elimination period.

For any disability related to illness, injury and leave for a pregnancy related medical condition which extends beyond the employee’s standard seven (7) day waiting period, it is the policy of Curtis to supplement the above insurance benefit and continue paying a portion of the employee’s salary up to 100% contingent on the following:

1. Certification of the disability by a physician, in writing, to the Human Resources department. Length of payment will be determined by State Disability, Workers’ Compensation or the No Fault Insurance Carrier as appropriate, not to exceed twenty-six (26) weeks.
2. Curtis will pay out the first week of disability to the employee, without using any accrued paid-time-off.
3. Salary continuation for short-term disability, Workers’ Compensation, etc. will be based on length of service and will supplement benefits paid by any of the above insurances, to equal no more than 100% of the employee’s gross salary.

Any insurance benefit payments reported to the company will be included as income where applicable and will be reflected on the employee’s W-2 form at the end of the year.

Employees will be allowed two-weeks supplemental paid short-term disability benefits for every full year (52-weeks) of service, to a maximum of twenty-six (26) weeks. As you are eligible, you will be allowed to utilize the supplemental salary benefits on a “rolling” twelve (12) month basis.

Example

• Salaried employee earns $800.00 per week.
• Length of service is three (3) years (qualifies for six (6) weeks of salary continuation).
• Duration of disability is nine (9) weeks.
• Curtis pays out the first week.
• State Disability Insurance benefits are 50% of salary with a maximum of $170.00 per week. There is a one (1) week waiting period for the Short-Term Disability benefit payments.

4.34 COBRA Health Coverage Continuation

4.34.1 Notice of Group Health Coverage Continuation Rights

If you elect coverage for yourself and any family members under one of Curtis’ available health plans, then Curtis is required, by a federal law called “COBRA,” to offer you and your family the opportunity to elect a temporary extension of health coverage in certain instances where coverage under the plan would otherwise end. This extended health coverage is commonly called “continuation coverage” or “COBRA coverage.”

You and/or your covered family members will have the opportunity to continue medical and/or dental benefits for a period of up to thirty-six (36) months under COBRA when group medical and/or dental coverage for you and/or your covered dependents would otherwise end due to your death or because:

• Your employment terminates, for a reason other than gross misconduct; or
• Your employment status changes due to a reduction in hours; or
• Your child ceases to be a “dependent child” under the terms of the medical and/or dental plan; or
• You become divorced or legally separated; or
• You become entitled to Medicare.
• In the event of divorce, legal separation, or a child’s loss of dependent status, you or a family member must notify the plan administrator within sixty (60) days of the occurrence of the event. The plan administrator will notify the individuals eligible for continuation coverage of their right to elect COBRA continuation coverage.

For more information regarding COBRA, you may contact Human Resources.