General FMLA and LOA Information:

Leaves of Absence for employees must comply with the Family Medical Leave Act, the Americans with Disabilities Act, the Veteran’s Re-employment Act and the Company’s Approved Medical Leave Policy.

References to these laws includes all amendments. The Company’s Medical Leave Policy does not supersede or replace an employee’s right or benefit under the Family and Medical Leave Act Policy, 9 the Americans with Disabilities Act, the Veterans Re-employment Act, or other State or Federal statute. An employee’s leave of absence under any other policy shall not be in addition to, but where applicable, will run concurrent with the Company’s Medical Leave Policy. Leave under the Company’s Medical Leave Policy will not provide for continuation of wages or salary unless provided under other benefits or policy. Whatever the reason for an employee’s leave of absence, they must arrange it with the knowledge of and coordination with their Supervisor, Manager or Store Director.

The terms and length of their leave of absence, if granted under State or Federal statute, will be administered and determined by the criteria contained within that same statute or act. The terms and length of the leave of absence, if granted under the Company’s approved medical leave, will be administered and determined by the criteria and provisions contained within this policy. The Company’s approved medical leaves are granted for individuals who are absent from work due to injury or illness having occurred on or off the job and are granted for up to six (6) months during a rolling 12 month period. Any employee absent from work on an approved medical leave will be asked to obtain, with the assistance of an approved physician, a Medical Status Evaluation Report (MSE). This evaluation, combined with other relevant criteria, will be the basis for determining the possibility of returning the employee to an active work status, including but not limited to a temporary or restricted light duty status.

Basic Leave Entitlement

The Company, as a general policy, does not provide personal leaves of absence. However, pursuant to the requirements of the Family and Medical Leave Act, the Company provides up to 12 weeks of unpaid, job-protected leave (or up to 26 weeks for certain military caregiver leave) to eligible employees for the following reasons:

• For incapacity due to pregnancy, prenatal medical care or child birth;

• To care for the employee’s child after birth or placement for adoption or foster care;

• To care for the employee’s spouse, son or daughter, or parent, who has a serious health condition;

• For a serious health condition that makes the employee unable to perform the employee’s job; or

• For qualifying exigencies arising out of the fact that the employee’s spouse, son, daughter, or parent is on active duty or called to active duty status as a member of the National Guard or Reserves in a support of a contingency operation.

The number of weeks of Family & Medical Leave are calculated using a rolling 12-month period measured backward from the date an employee uses any FMLA.

Benefits and Protections

During FMLA leave, the Company will maintain the employee’s health coverage under the group health plan then in effect on the same terms as if the employee had continued to work. The employee will continue to be responsible for his/her portion of any premiums. Upon return from FMLA leave, most employees will be restored to their original or equivalent positions with equivalent pay, benefits, and other employment terms. Use of FMLA leave will not result in the loss of any employment benefit that accrued prior to the start of an employee’s leave.

Eligibility Requirements

Employees are eligible for FML if they have worked for the Company for at least one year, for 1,250 hours over the preceding 12 months, and if at least 50 employees are employed by the Company within 75 miles of the employee’s location.

Definition of Serious Health Condition

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 may be met by a period of incapacity of more than 3 consecutive calendar days combined with at least two visits to a health care provider (within 30 days of the first day of incapacity) or one visit (within 7 days of the first day of incapacity) and a regimen of continuing treatment, or incapacity due to pregnancy, or incapacity due to a chronic condition. Other conditions may meet the definition of continuing treatment.

Use of Leave

An employee does not need to use this leave entitlement in one block. Leave can be taken intermittently or on a reduced leave schedule when medically necessary. Employees must make reasonable efforts to schedule leave for planned medical treatment so as not to unduly disrupt the Company’s operations. Leave due to qualifying exigencies may also be taken on an intermittent basis.

Substitution of Paid Leave for Unpaid Leave

Employees may choose or the Company may require use of accrued paid leave (if the employee otherwise has paid leave available) while taking FMLA leave. In order to use paid leave for FMLA leave, employees must comply with the Company’s normal paid leave policies.

Employee Responsibilities

Employees must provide 30 days advance notice of the need to take FMLA leave when the need is foreseeable. When 30 days’ notice is not possible, the employee must provide notice as soon as practicable and generally must comply with an the Company’s normal call-in procedures. Employees must provide sufficient information for the Company to determine if the leave may qualify for FMLA protection and the anticipated timing and duration of the leave. Sufficient information may include that the employee is unable to perform job functions, the family member is unable to perform daily activities, the need for hospitalization or continuing treatment by a health care provider, or circumstances supporting the need for 10 military family leave. Employees also must inform the Company if the requested leave is for a reason for which FMLA leave was previously taken or certified. Employees also may be required to provide a certification and periodic recertification supporting the need for leave.

Company Responsibilities

The Company will inform employees requesting leave whether they are eligible under FMLA. If they are, the notice will specify any additional information required as well as the employees’ rights and responsibilities. If they are not eligible, the Company will provide a reason for the ineligibility. The Company will inform employees if leave will be designated as FMLA-protected and the amount of leave counted against the employee’s leave entitlement. If the Company determines that the leave is not FMLA-protected, the Company will notify the employee.

The Company will not:

• Interfere with, restrain, or deny the exercise of any right provided under FMLA;

• Discharge or discriminate against any person for opposing any practice made unlawful by FMLA or for involvement in any proceeding under or relating to FMLA.

Military Family Leave Entitlements

Eligible employees with a spouse, son, daughter, or parent on active duty or call to active duty status in the National Guard or Reserves in support of a contingency operation may use their 12-week leave entitlement to address certain qualifying exigencies. Qualifying exigencies may include attending certain military events, arranging for alternative childcare, addressing certain financial and legal arrangements, attending certain counseling sessions, and attending post-deployment reintegration briefings. FMLA also includes a special leave entitlement that permits eligible employees to take up to 26 weeks of leave to care for a covered service member during a single I2-month period. A covered service member is a current member of the Armed Forces, including a member of the National Guard or Reserves, who has a serious injury or illness incurred in the line of duty on active duty that may render the service member medically unfit to perform his or her duties for which the service member is undergoing medical treatment, recuperation, or therapy; or is in outpatient status; or is on the temporary disability retired list. See the Company’s Military-Related FMLA Leave of Absence statement for more details.

Employee Information/Complaints

If you have questions about the Company’s family and medical leave, call the Human Resource Department at (936) 634-8155. Under the FMLA, an employee may file a complaint with the U.S. Department of Labor or may bring a private lawsuit against an employer. FMLA does not affect any Federal or State law prohibiting discrimination, or supersede any State or local law or collective bargaining agreement that provides greater family or medical leave rights. For additional information concerning your rights under FMLA please refer to the “Notice to Employees of Rights under FMLA” posting on your employee bulletin board or contact 1-866-487-9243 (TTY: 1-877-889-5627) or WWW.WAGEHOUR.DOL.GOV