SBSI Employee Handbook May 2023

THE CONTENTS OF THE EMPLOYEE HANDBOOK ARE PRESENTED AS A MATTER OF INFORMATION. WHILE THIS HANDBOOK IS NOT INTENDED TO BE A BOOK OF RULES AND REGULATIONS, IT DOES INCLUDE SOME IMPORTANT GUIDELINES WHICH YOU SHOULD KNOW. EXCEPT FOR THE AT-WILL EMPLOYMENT PROVISIONS, THE HANDBOOK CAN BE AMENDED AT ANY TIME. THE HANDBOOK, THE PLANS, POLICIES, AND PROCEDURES DESCRIBED HEREIN, AND THE LANGUAGE USED HEREIN ARE NOT INTENDED TO CREATE, OR IS IT TO BE CONSTRUED TO CONSTITUTE, A CONTRACT BETWEEN THE ORGANIZATION AND ANY OR ALL OF ITS EMPLOYEES. LIKEWISE, NEITHER IS THIS EMPLOYEE HANDBOOK, THE PLANS, POLICIES AND PROCEDURES DESCRIBED HEREIN, NOR THE LANGUAGE USED HEREIN, INTENDED TO BE OR IS, A GUARANTEE OR PROMISE OF EMPLOYMENT OR CONTINUING EMPLOYMENT.

YOU ARE NOT HIRED FOR ANY DEFINITE OR SPECIFIED PERIOD OF TIME EVEN THOUGH YOUR WAGES ARE PAID REGULARLY. YOU ARE AN AT-WILL EMPLOYEE OF THE ORGANIZATION AND YOUR EMPLOYMENT CAN BE TERMINATED AT ANY TIME, WITH OR WITHOUT CAUSE AND WITH OR WITHOUT PRIOR NOTICE. ORGANIZATION POLICY REQUIRES ALL EMPLOYEES TO BE HIRED AT WILL AND THIS POLICY CANNOT BE CHANGED BY ANY ORAL MODIFICATIONS. THERE HAVE BEEN NO IMPLIED OR VERBAL AGREEMENTS OR PROMISES TO YOU THAT YOU WILL BE DISCHARGED ONLY UNDER CERTAIN CIRCUMSTANCES OR AFTER CERTAIN PROCEDURES ARE FOLLOWED. THERE IS NO IMPLIED EMPLOYMENT CONTRACT CREATED BY THIS HANDBOOK OR ANY OTHER ORGANIZATION DOCUMENT OR WRITTEN OR VERBAL STATEMENT OR POLICY.

WELCOME

Welcome to Southeast Building Supply Interests (SBSI), where we proudly serve the people building communities across the Southeast!

We are pleased you have chosen to work for SBSI, and we are excited to have you as part of our team. You were hired because you "stood out from the crowd," and we believe you can help SBSI achieve its goals while also progressing in your career.

SBSI is committed to quality and customer service that can't be beat in every part of our business. As a team member, you will be challenged to strive for excellence. We believe in giving each of our customers the best service possible, which means we must strive for excellence in every interaction. You must "own" the outcomes of your productivity as a team member.

Team members who are creative, hardworking, and encouraged to make suggestions and think "outside the box" are the key to our success. Your job, and every job at SBSI, is critical to achieving our mission. We are building a bestin-class regional LBM pro-dealer organization. To us, that means:

1. Making our people our focus

2. Honoring the family businesses that have become a part of SBSI

3. Centering our efforts on providing value to customers; and

4. Celebrating the local communities that we are a part of.

Each location has a unique history and culture, but we are all united by these four core beliefs.

Our bold and ambitious vision for the future of SBSI rests on a foundation of uncompromising commitment to:

• SAFETY – Ensuing all SBSI locations are safe places to work and do business.

• TEAM MEMBERS – Providing a positive employee experience for our team members and valuing each person's contribution to our collective goals.

• CUSTOMERS – Delivering excellent customer service and continually looking to differentiate the SBSI customer experience.

This is our company, and we will each get back what we put in. We look forward to learning, growing, and being successful together!

WORKPLACE VALUES & CULTURE

A culture is a set of shared rules, beliefs and attitudes that dictate how things are done and how people interact. Because every company is unique, every company culture is unique, too.

At SBSI, our culture is a culture of ownership. So what does that mean?

• It means that our team members take pride in our work and in our workplace.

• It means that we all work together, with respect for each other, but also holding each other accountable, to solve every problem, satisfy every customer, and close every sale.

• It means that we don’t wait to be asked or directed, we step up and volunteer.

• It means that we want to know more – about our customers, about our business, and about each other.

• It means that our managers help team members – and our company – succeed by setting clear expectations, asking for input and ideas, sharing information and empowering our team to find smarter ways to work.

We have built this culture on a foundation of systems and processes that formalize the way we train, nurture, coach and listen. And when it all works together in one connected network across all our locations, it results in a proud, successful and highly motivated organization, where managers mentor, guide and encourage rather than command, and team members are energized, engaged and appreciated rather taken for granted.

Our culture can be summed up in one simple equation:

Positive attitudes + positive actions = positive workplace culture.

We hope you will find satisfaction and take pride in your work here. As a member of the SBSI team, you have a tremendous opportunity to help us fulfill our commitment to providing a high level of customer service while offering quality products at competitive prices by contributing your talents and energies. We look forward to seeing what you can do and how you will contribute to the growth of SBSI.

WORKPLACE POLICIES

PURPOSE OF THIS HANDBOOK

This handbook has been provided to you to help you understand the basic policies and procedures in effect for Southeast Building Supply Interests, LLC (“SBSI” or the “Company”). The policies and procedures described in this handbook have been designed to explain certain benefits to you, to comply with the requirements imposed upon us by law, and to maintain efficient operations; all of which make it possible for us to remain productive and competitive in our industry.

It is always important to do the right thing. Referring to the Code of Conduct and following Company policies and applicable state and federal laws, rules and regulations will help enable you to make the right choices.

No one other than authorized management may alter or modify any of the policies in this handbook. No statement or promise by a supervisor, manager, or designee is to be interpreted as a change in policy, nor will it constitute an agreement or contract with an employee.

Should any provision in this handbook be found to be unenforceable and invalid, such a finding does not invalidate the entire handbook, but only the subject provision. Nothing in this Handbook is intended to infringe upon employee rights codified in Section 7 of the National Labor Relations Act (“NLRA”) or to be incompatible with the NLRA. However, if you ever have questions or concerns about a section of the Code of Conduct, a company policy, a law, rule or regulation, contact Human Resources.

AT WILL STATEMENT

Your employment with SBSI is at will. This means your employment is for an indefinite period and it is subject to termination by you or SBSI, with or without cause, with or without notice, and at any time. Nothing in this handbook or any other policy of SBSI shall be interpreted to conflict with or to eliminate or modify in any way, the at-will employment status of SBSI’s team members.

The at-will disclaimer does not, and is not intended to interfere with, limit or relinquish a team member’s right to join with others to work toward altering the terms and conditions of his/her employment, including at-will status or discussing terms of employment with co-workers.

The at-will employment status of a team member of SBSI may be modified only by a written employment agreement with that team member signed by the CEO of SBSI. No one other than authorized management may alter or modify any of the policies in this handbook. No statement or promise by a supervisor, manager, or designee is to be interpreted as a change in policy, nor will it constitute an agreement or contract with an employee.

Should any provision in this handbook be found to be unenforceable and invalid, such a finding does not invalidate the entire handbook, but only the subject provision. Nothing in this Handbook is intended to infringe upon employee rights codified in Section 7 of the National Labor Relations Act (“NLRA”) or to be incompatible with the NLRA.

VOLUNTARY OPEN DOOR POLICY

SBSI recognizes that team members may have suggestions for improving our workplace. SBSI feels that the most satisfactory solution to a job-related problem or concern is usually reached through a prompt discussion with a team member's supervisor. Team members should feel free to contact their supervisors with any suggestions and/or complaints. If team members do not feel comfortable contacting their supervisor or are not satisfied with their supervisor’s response, they should contact Human Resources.

While SBSI provides team members with this opportunity to communicate their views, please understand that not every complaint can be resolved to the team member's satisfaction. Even so, we believe that open communication

is essential to a successful work environment and all team members should feel free to raise issues of concern without fear of reprisal.

Please note that some company policies, such as the Sexual and Other Unlawful Harassment policy, contain specific reporting procedures that should be followed. Team members should utilize this Voluntary Open-door policy for reports and ideas that are not addressed through the Company's specific reporting procedures.

COMMITMENT TO DIVERSITY

SBSI is committed to fostering, cultivating, and preserving a culture of diversity, equity and inclusion.

Differences of perspective, thought, and style strengthen our decision making, strategies, and results. Therefore, we work to create and foster environments that encourage diversity in multiple forms; empower our teammates; nurture a shared sense of belonging; and appreciate the broader impact of our work. We are energized to continuously exchange ideas, embrace difference, and challenge the status quo.

All team members of SBSI have a responsibility to always treat others with dignity and respect. All team members are expected to exhibit conduct that reflects inclusion during work, at work functions on or off the work site, and at all other company-sponsored and participative events. Any team member found to have exhibited any inappropriate conduct or behavior against others may be subject to disciplinary action.

EQUAL EMPLOYMENT OPPORTUNITY

SBSI is an equal opportunity employer and makes employment decisions based on merit. We want the best talent in every position. SBSI’s policy is to provide equal employment opportunity for all qualified applicants and team members, without regard to race or traits associated with race (such as hairstyle), color, creed, religious views, gender, gender identity, national origin or place of birth, ancestry, physical disability (except where physical fitness is a valid occupational qualification), mental disability, visual disability, genetic information, age, medical condition including genetic characteristics, marital status, military service, veteran status, volunteer rescue workers (if the worker is absent or late to work because the team member is responding to an emergency before the team member’s reporting time), sex, sexual orientation, registered domestic partner status or any other classification protected by applicable local, state or federal law. This policy applies to all terms and conditions of employment, including recruitment, hiring, placement, promotion, demotion, termination, compensation, benefits, training, layoff, recall, transfer, and leaves of absence. This policy also prohibits unlawful discrimination based on the perception that anyone has any of the characteristics listed or is associated with a person who has or is perceived as having any of the listed characteristics. All such discrimination is unlawful. As an SBSI team member, you are expected to honor this policy and to take an active role in keeping harassment and discrimination out of the workplace.

The Company is committed to compliance with all applicable laws providing equal employment opportunities. This commitment applies to all persons involved in Company operations and prohibits unlawful discrimination by any team member of the Company, including supervisors and coworkers. All team members are expected to take all steps necessary to maintain a workplace free from unlawful discrimination and harassment and to accommodate others in line with this policy to the fullest extent required by law.

These laws cover all facets of employment including but not limited to recruiting, selection, placement, promotions, transfers, demotions, termination, training, compensation, and other conditions of employment.

The Company encourages any team member to raise questions he or she may have regarding harassment or discrimination with Human Resources.

Disability

To comply with applicable laws ensuring equal employment opportunities for individuals with disabilities, SBSI will make reasonable accommodations for the known physical or mental limitations of an otherwise qualified individual with a disability who is a team member or applicant for employment unless undue hardship and/or a direct threat to the health and/or safety of the individual or others would result.

Do not assume the Company is aware of any disability or condition you may have. Any team member who requires an accommodation to perform the essential functions of their job, enjoy an equal employment opportunity and/or obtain equal job benefits should contact Human Resources to request such an accommodation. Human Resources will communicate with the team member and engage in an interactive process to determine the nature of the request and what, if any, reasonable accommodation may be appropriate. During the interactive process, Human Resources may require documentation from the team member’s healthcare provider to both substantiate the medical need for the accommodation as well as further understand the nature of the request itself. In some cases, this interactive process may be triggered without a request from the team member, such as when the Company receives notice from its own observation or another source that a medical impairment may be impacting the team member’s ability to perform their essential job functions.

Team members who believe they need an accommodation must specify, in writing, what barriers or limitations prompted the request. The Company will evaluate information obtained from the team member, and possibly their health care provider or another appropriate health care provider, regarding any reported or apparent barriers or limitations and will then work with the team member to identify possible accommodations, if any, that will help to eliminate or otherwise address the barrier(s) or limitation(s). If an identified accommodation is reasonable and will not impose an undue hardship on the Company and/or a direct threat to the health and/or safety of the individual or others, the Company will generally make the accommodation, or it may propose another reasonable accommodation that may also be effective. Team members are required to cooperate with this process by providing all necessary supporting documentation of supporting the need for accommodation and being willing to consider alternative accommodations when applicable.

Team members who wish to request unpaid time away from work because of a qualifying disability should speak to Human Resources regarding a proposed accommodation or, if applicable, leave under the Family and Medical Leave Act (“FMLA”). The Company will not retaliate or otherwise discriminate against a team member or applicant who requests an accommodation in accordance with this policy.

Pregnancy

The Company will also consider requests for reasonable accommodations for medical conditions related to pregnancy, childbirth and lactation where supported by medical documentation and/or as required by applicable federal, state or local law. Team members who need, or may need, an accommodation related to pregnancy should notify Human Resources.

Religious Accommodations

The Company will provide reasonable accommodation for team members’ sincerely held religious beliefs, observances and practices when a need for such accommodation is identified and reasonable accommodation is possible. A reasonable accommodation is one that eliminates the conflict between a team member’s sincerely held religious beliefs, observances or practices and the team member’s job requirements, without causing undue hardship to the Company.

Any team member who perceives a conflict between job requirements and religious belief, observance or practice should bring the conflict and their request for accommodation to the attention of Human Resources to initiate the accommodation process. The Company requests that accommodation requests be made in writing, and in the case of schedule adjustments, as far in advance as possible.

ANTI-HARASSMENT AND NON-DISCRIMINATION POLICY

SBSI is committed to providing a work environment free of unlawful harassment where all individuals are treated with respect and dignity. Each individual has the right to work in a professional atmosphere that promotes equal employment opportunities and prohibits unlawful discriminatory practices, including harassment. Therefore, SBSI expects that all relationships among persons associated with our workplace will be business-like and free of bias, prejudice and harassment.

Company policy prohibits discrimination and/or harassment based on pregnancy (including childbirth, breastfeeding or related medical conditions), race, religious creed, color, sex, gender identity, gender expression, national origin or ancestry, physical or mental disability, medical condition, marital status, registered domestic partner status, age, sexual orientation, veteran status, current or prospective service in the uniformed services or any other basis protected by federal, state or local law or ordinance or regulation. All such harassment or discrimination is unlawful and will not be tolerated. The Company’s anti-harassment and non-discrimination policy applies to all persons involved in the operation of the Company and prohibits unlawful harassment of team members, applicants and other persons providing services to the Company or by any team member of the Company, including supervisors and managers, as well as vendors, customers and any other persons associated with the Company. The Company also prohibits unlawful harassment based on the perception that anyone has any of those characteristics or is associated with a person who has or is perceived as having any of those characteristics.

Discrimination

It is a violation of SBSI’s policy to discriminate in the provision of employment opportunities, benefits or privileges; to create discriminatory work conditions; or to use discriminatory evaluative standards in employment if the basis of that discriminatory treatment is, in whole or in part, based on a person’s protected class.

Discrimination may also be strictly prohibited by a variety of federal, state and local laws, including Title VII of the Civil Rights Act of 1964, the Age Discrimination Act of 1967 and the Americans with Disabilities Act of 1990. This policy is intended to comply with the prohibitions stated in these anti-discrimination laws.

Harassment

For purposes of this policy, harassment is any verbal or physical conduct designed to threaten, intimidate or coerce a team member, co-worker, or any person working for or on behalf of SBSI.

The following examples of harassment are intended to be guidelines and are not exclusive when determining whether there has been a violation of this policy:

• Verbal harassment includes comments that are offensive or unwelcome regarding a person's national origin, race, color, religion, age, sex, sexual orientation, pregnancy, appearance, disability, gender identity or expression, marital status or other protected status, including epithets, slurs and negative stereotyping.

• Nonverbal harassment includes distribution, display or discussion of any written or graphic material that ridicules, denigrates, insults, belittles or shows hostility, aversion or disrespect toward an individual or group because of national origin, race, color, religion, age, gender, sexual orientation, pregnancy, appearance, disability, sexual identity, marital status or other protected status.

• Sexual Harassment

Federal law defines sexual harassment as unsolicited and unwanted sexual advances, requests for sexual favors or visual, verbal or physical conduct of a sexual nature when:

• Submission to such conduct is made a term or condition of employment.

• Submission to or rejection of such conduct is used as basis for employment decisions affecting the individual.

• Such conduct has the purpose or effect of unreasonably interfering with a team member's work performance or creating an intimidating, hostile or offensive working environment.

Sexual harassment may take different forms. The following examples of sexual harassment are intended to be guidelines and are not exclusive when determining whether there has been a violation of this policy:

• Verbal sexual harassment includes innuendoes, suggestive comments, jokes of a sexual nature, sexual propositions, lewd remarks and threats; requests for any type of sexual favor (this includes repeated, unwelcome requests for dates); and verbal abuse or "kidding" that is oriented toward a prohibitive form of harassment, including that which is sexual in nature and unwelcome.

• Nonverbal sexual harassment includes the distribution, display or discussion of any written or graphic material, including calendars, posters and cartoons that are sexually suggestive or show hostility toward an individual or group because of sex; suggestive or insulting sounds; leering; staring; whistling; obscene gestures; content in letters, notes, facsimiles, e-mails, photos, text messages, tweets and Internet postings; or other forms of communication that are sexual in nature and offensive.

• Physical sexual harassment includes unwelcome, unwanted physical contact, including touching, tickling, pinching, patting, brushing up against, hugging, cornering, kissing, fondling, and forced sexual intercourse or assault.

Courteous, mutually respectful, pleasant, noncoercive interactions between team members that are appropriate in the workplace and acceptable to and welcomed by both parties are not considered to be harassment, including sexual harassment.

This policy applies to harassment by individuals of the same sex or opposite sex. It is no defense to a complaint of harassment based on sex that the alleged harassing conduct was not motivated by sexual desire. Sexual harassment on the job is unlawful whether it involves coworker harassment, harassment by a supervisor or manager, or by persons doing business with or for the Company.

This policy also protects team members from harassment by vendors, clients/customers or other third parties not employed by the Company. If harassment occurs on the job by someone not employed by the Company, the procedures in this policy will be followed.

Confidentiality

All complaints and investigations are treated confidentially to the extent possible, and information is disclosed strictly on a need-to-know basis. The identity of the complainant is usually revealed to the parties involved during the investigation, and Human Resources will take adequate steps to ensure that the complainant is protected from retaliation during and after the investigation. All information pertaining to a complaint or investigation under this policy will be maintained in secure files within Human Resources.

No Retaliation

The Company will not retaliate against any team member for filing a complaint, and will not tolerate or permit retaliation by management, team members or coworkers. No hardship, loss, benefit or penalty may be imposed on a team member in response to:

• Filing or responding to a bona fide complaint of discrimination or harassment.

• Appearing as a witness in the investigation of a complaint.

• Serving as an investigator of a complaint.

Lodging a bona fide complaint will in no way be used against the team member or have an adverse impact on the individual's employment status. However, filing groundless or malicious complaints is an abuse of this policy and will be treated as a violation. Any person who is found to have violated this aspect of the policy will be subject to discipline up to and including termination of employment.

Any report of retaliatory conduct will be immediately, objectively and thoroughly investigated in accordance with the Company's investigation procedure outlined above. If a report of retaliation is substantiated, appropriate disciplinary action, up to and including discharge, will be taken.

Reporting Procedure

The Company encourages all team members to report any incidents of harassment forbidden by this policy immediately so that complaints can be quickly and fairly resolved by the Company. SBSI will promptly investigate all serious allegations or claims of discrimination or harassment and take necessary action as appropriate, based on the investigation. If you believe that you have been unlawfully harassed, discriminated or retaliated against, the following procedure has been established.

Submit a verbal or written complaint to Human Resources as soon as possible after the incident. You will be asked to provide details of the incident or incidents, names of individuals involved and names of any witnesses. The Company will immediately conduct a fair, timely and thorough investigation of the harassment allegations.

Steps taken in furtherance of the investigation, may include some or all of the following:

• If documents, emails or phone records are relevant to the investigation, they may be collected and/or steps may be taken to ensure they are not deleted;

• Interviewing the parties and witnesses involved;

• Determining whether the allegations are substantiated by the investigation findings; and

• Notifying the individual who made a complaint and any subjects of the investigation about the final determination.

The Company will endeavor to protect the privacy and confidentiality of all parties involved to the extent possible consistent with a thorough investigation. Investigations will be conducted as confidentially as possible and related information will only be shared with others on a need-to-know basis. The investigation will be completed and a determination made and communicated to the employees involved, as appropriate and as soon as practical.

If the Company determines that unlawful harassment has occurred, effective, remedial action will be taken in accordance with the circumstances involved. Any team member determined by the Company to be responsible for unlawful harassment will be subject to appropriate disciplinary action, up to and including termination. If a complaint cannot be substantiated, the Company may take appropriate action to reinforce its commitment to providing a work environment free from harassment, discrimination, and retaliation.

In addition to the Company's internal complaint procedure, you may file your complaint with the Federal Equal Employment Opportunity Commission (EEOC). EEOC field office information is available at www.eeoc.gov. Nothing in this policy may prevent the complainant or the respondent from pursuing formal legal remedies or resolution through local, state or federal agencies or the courts.

Any team member, including any supervisor or manager, who is found to have engaged in unlawful harassment is subject to disciplinary action up to and including discharge from employment. A team member who engages in harassment may be held personally liable for monetary damages. The Company will not pay damages assessed personally against a team member

Reporting Procedure for Non-Harassment Cases

The Company has established a procedure for a fair review of complaints related to a workplace controversy, conflict, or that does not involve harassment, discrimination, or retaliation. Employees may take their complaint directly to the person or department listed in Step 2 if the complaint is related to their supervisor or manager or if the employee feels the supervisor or manager would not provide an impartial resolution.

Step 1

The complaint should be submitted orally or in writing to a supervisor or manager within three (3) business days of the incident or as soon as possible. Sooner is better, as it will assist in a more accurate investigation, but complaints will be taken seriously regardless of when they are reported. Generally, a meeting will be held within three (3) business days of the employee's request, depending upon scheduling availability. Attempts will be made to resolve the issue during the meeting, but regardless of whether there is an immediate resolution, the supervisor or manager will give the employee a written summary of the meeting within three (3) business days. Resolution may take longer if further investigation of the complaint is required. If the employee is not satisfied with the resolution, they may proceed to Step 2.

Step 2

The employee may submit an oral or written request for review of the complaint and Step 1 resolution to the HR Director or a designated investigator. This request should be made within three (3) business days following the receipt of the Step 1 resolution. The HR Director or the designated investigator will review the complaint and resolution and may call an additional meeting to explore the problem. If warranted, additional fact-finding will be undertaken. A final decision will be rendered within 10 business days after receiving the Step 2 request, and a written summary of the resolution will be provided to the employee who filed the complaint, if appropriate under the circumstances as determined in the Company's sole discretion.

CODE OF CONDUCT

SBSI is committed to providing best-in-class teams member experience. To ensure our Company’s continued success, and team member satisfaction, SBSI expects team members to follow basic, common-sense rules of conduct.

PROHIBITED CONDUCT

It is not possible to list all forms of behavior that are considered unacceptable in the workplace, but the following are examples of infractions that may result in disciplinary action, including suspension, demotion, or termination of employment:

• Falsification of employment records, employment information or other records.

• Recording the work time of another team member, allowing any team member to record another team member's work time, or allowing falsification of any timecard, whether yours or another team member’s.

• Theft or the deliberate or careless damage of any company property or the property of any team member or client.

• Use of company materials, supplies, tools, or products for personal reasons without advanced permission from management.

• Abuse of the Company's electronic resources, including sending personal emails during working time or in a manner that interferes with the team member's work performance.

• Possessing, distributing, selling, transferring or using or being under the influence of alcohol or illegal drugs in the workplace.

• Provoking a physical fight or engaging in physical fighting during working hours or on premises owned or occupied by the Company.

• Carrying firearms, weapons or dangerous substances at any time, on premises owned or occupied by the Company, unless state law provides otherwise. Note: This prohibition applies only to the extent allowed by applicable state law. In those states that specifically give the team member the right to maintain a lawfully possessed firearm in a locked vehicle in the employer's parking lot, team members will be permitted to maintain a firearm in their own locked vehicle in compliance with the law. Under those circumstances, Team members are strictly prohibited from removing the firearm from their vehicle or carrying it on their person or into a building.

• Using abusive, violent, threatening or vulgar language at any time during working hours or while on premises owned or occupied by the Company.

• Absences or a pattern of absences whether consecutive or not, on scheduled workdays without prior notice to the Company.

• Abusing or misusing paid time off. Note: For team members subject to mandatory sick leave laws, the provisions of the applicable policy govern sick leave issues.

• Failing to obtain permission to leave work during normal working hours

• Failing to observe working schedules, including meal and rest breaks.

• Failing to provide a certificate from a health care provider when requested or required to do so in accordance with applicable law.

• Working overtime without authorization or refusing to work assigned hours.

• Violating any safety, health or security policy, rule, or procedure of the Company.

• Committing a fraudulent act or intentional breach of trust under any circumstances.

This statement of prohibited conduct does not alter or limit the policy of at-will employment. Either the team member or the Company may terminate the employment relationship at any time for any reason, with or without cause, and with or without notice.

CONFLICTS OF INTEREST

The Company expects team members to support and adhere to the high standards of the business ethics that we have sought to develop and maintain. The Company does not intend to restrict arbitrarily team members’ personal activities; rather, we want to make it clear that no conflict of interest should exist that could conceivably influence team members’ judgment in handling Company business or that might present an unfair advantage to suppliers, vendors, customers or contractors.

Every team member of the Company has an ethical and legal responsibility to put the interests of the Company ahead of any other business or commercial interests that the team member may have as an individual. A conflict of interest exists when other business or commercial interests compete with the team member’s obligation to serve the interests of the Company. Even the perception of a conflict of interest can cause harm to the Company and to the team member involved. We understand that some team members are involved in employment or business activity outside SBSI. We support you in this choice, as long as those work-related activities and conduct do not compete with, conflict with or compromise the company’s interests or adversely affect job performance and the ability to fulfill all responsibilities to SBSI. Team members are prohibited from performing any services for customers of SBSI that are normally performed by SBSI. This prohibition also extends to the unauthorized use of any company tools or equipment and the unauthorized use or application of any company confidential information. In addition, team members may not solicit or conduct any outside business during work time for SBSI.

A conflict of interest also exists whenever there is a proposed transaction of the Company in which a team member has any actual or potential involvement, interest or relationship, either directly or indirectly. A conflict of interest may also exist when the interests or concerns of any team member, or such team member’s immediate family, or any party, group, or Company to which such person has allegiance, may be seen as competing with the interests or concerns of the Company.

If a team member finds that they have, or are considering the assumption of a financial interest or outside employment relationship that might involve a conflict of interest, or if the team member is in doubt concerning the proper application of this policy, they should promptly discuss the matter with the most senior local management representative and/or Human resources and refrain from exercising responsibility on the Company's behalf in any manner that might reasonably be considered to be affected by any adverse interest.

Failure to disclose the fact of a conflict or potential conflict may constitute grounds for disciplinary action, including immediate termination of employment.

FINANCIAL INTERESTS

Holding a significant or controlling interest in one of SBSI’s competitors, customers, or suppliers could create a divided loyalty. This also applies to financial interests held by a member of your household or immediate family. Financial interests that pose a potential conflict of interest require approval from Human Resources and the CEO of the Company.

ANTI-CORRUPTION, BRIBERY, AND KICKBACKS

Never resort to bribery, facilitation payments, kickbacks, or corrupt practices.

Bribery: offering or giving something of value in order to improperly influence the recipient’s actions. Bribery is illegal in the U.S. and most other countries and the consequences are severe, including jail sentences.

Facilitation Payment: a tip or small payment made to a government official in order to expedite a routine government action, such as issuing a permit or providing utility service.

Kickback: the return of a sum paid (or due to be paid) as a reward for fostering a business arrangement. In addition to cash, these can include gifts, trips, and meals. Accepting or offering a kickback violates this Code.

Bribery, corruption and related, facilitation payments and kickbacks are not only against Company values, but they are also illegal and can expose the team member and the Company to fines and penalties, including imprisonment. Bribery is never permitted. The Company will not seek to influence others, either directly or indirectly, by offering, paying or receiving bribes or kickbacks, or by any other means that is considered unethical, illegal or harmful to its reputation for honesty and integrity. Team members and representatives of the Company are expected to decline any opportunity which would place the Company’s ethical principles and reputation at risk. While certain laws apply only to bribes to government officials (domestic and foreign), this policy applies to non-government business partners as well.

Team members and representatives should seek clarification on any questions or concerns regarding activities under consideration or the interpretation of any law. If you are offered a bribe from a person or entity doing business with or seeking to do business with the Company, report it immediately to your supervisor or to Human Resources. If you are offered something of value and are uncertain whether you can accept it, check with your supervisor or Human Resources. Retaliation against team members who report concerns in good faith is prohibited.

CONFIDENTIAL INFORMATION

Confidential Company Information

Team members of the Company may have access to, observe, learn, or develop confidential or proprietary, information (“Confidential Information”) concerning the Company’s financial and strategic planning information, financial matters and results, sales goals and plans, business and marketing strategies, research and development information, contract terms, personnel information, medical information, customer information, vendor information, and similar business information relating to the Company’s operations not generally available to the public. Team members are responsible to always protect and safeguard all Confidential Information.

Team members should not access, disclose, use, copy, destroy, send to a personal email account, download, summarize or remove from Company premises any Confidential Information except as necessary to perform the duties of the job or as specifically directed by Company management. Access to Confidential Information is only on a need-to-know basis. Confidential Information may not be removed from the Company premises without express authorization from Human Resources.

This obligation to maintain the confidentiality of the Company’s Confidential Information applies both during and after employment with the Company. If a team member is unsure as to whether certain information is Confidential Information, it is the team member’s responsibility to obtain a determination from Human Resources regarding the status of the information and its use. Failure to abide by the terms of this policy may subject a team member to disciplinary action, up to and including termination.

Team members are obligated to return all Confidential Information to the Company upon termination or at any time on the request of the Company. Team members are prohibited from making or retaining copies or summaries of this Confidential Information.

Nothing in this policy is intended to interfere with, restrain, or prevent team member communications regarding wages, hours, or other terms and conditions of employment.

Moreover, federal law provides that an individual shall not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret under either of the following conditions:

• where the disclosure is made in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney, and solely for the purpose of reporting or investigating a suspected violation of law; or

• where the disclosure is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.

Federal law also provides that an individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the trade secret to the attorney of the individual and use the trade secret information in the court proceeding, if the individual files any document containing the trade secret under seal and does not disclose the trade secret, except pursuant to court order.

Confidential Customer Information

In the course of doing their jobs, team members may be required to collect and handle confidential customer information in the form of credit applications, bank cards credit cards, and drivers’ licenses to operate its business. It is critical that all customer information be treated with care and privacy and that disclosure of such information is made to authorized team members only. The details of the Company’s policy on handling customer information can be found on the team member portal.

Confidential Team Member Information

The Company maintains confidential personnel records concerning your employment and restricts disclosure of personnel files to authorized team members only. It is important that your personnel records are accurate and up to date. To keep complete and current records, it is necessary that you update your information immediately through Human Resources whenever there is a change to your personal information relevant to your employment with the Company.

All team member personnel files are confidential Company records. Files will be reviewed only by Company officials or by those who have a legitimate need to review such files. Confidential personnel records and information will be provided to outside sources only as required by law. Information provided for employment references is limited to position title and dates of employment. More extensive information may only be released if the team member first provides written authorization. If you wish to review your personnel file, please contact Human Resources.

To ensure the security and safety of our work environment, the Company reserves the right to inspect any personal effects and items on Company property, as well as private vehicles parked on Company property. Company inspections may occur at any time with or without notice to the team member and not necessarily in the team member’s presence. The Company may also require team members to self-inspect their personal property or person by displaying the contents of any packages, purses, briefcases, backpacks, pockets, etc. The Company will not tolerate a team member’s refusal to submit to a search. Team members have no reasonable expectation of privacy in the items or property they bring onto the Company’s property. Your entry onto Company property constitutes your consent to these inspections.

The Company is not responsible for any personal items or valuables that are lost, damaged, stolen, or destroyed while on Company premises. For security reasons, team members should not leave personal belongings of value in the workplace

All requests for references must be directed to Human Resources. No other department, supervisor, or team member is authorized to release references for current or former team members.

GIFTS AND ENTERTAINMENT

It is the policy of the Company to accept only gifts of minimal or token value and which do not present a conflict with the Company’s interests. Accepting entertainment invitations that are business related, usual and customary is an acceptable means of maintaining business relationships. Team members must refrain from accepting or giving any gift or entertainment that may influence or appear to influence the decision to do business with the Company. Prior approval is required from Human Resources and the CEO for any gift in excess of $25.00.

Under appropriate circumstances and with prior approval, SBSI team members may be permitted to provide or accept meals, travel, gifts, or entertainment to or from current or prospective customers, suppliers, vendors, competitors, or anyone else who has or could be expected to have business dealings with SBSI or impact SBSI’s

business. Meals, travel, gifts, or entertainment may not be provided to government officials. Team members should not accept gifts and give them to family members, relatives, or other persons.

The following requirements must be met for the gift, entertainment, meal, or travel to be appropriate.

• Not be intended to gain an improper business advantage or to induce improper performance or be of a nature that creates such an appearance.

• Be directly related to a legitimate business purpose (i.e., a meeting, presentation or demonstration hosted by SBSI regarding its products or services, or execution or performance of a contract or ceremonial/holiday gifts to help build relationships).

• Be permissible under local laws, rules, and regulations and SBSI’s internal policies.

• Not so frequent as to suggest or create the appearance of an improper business advantage or an inducement for improper performance.

Team members who have questions concerning the appropriateness of a gift or other item of value should contact Human Resources

NO SOLICITATION/NO DISTRIBUTION/NO ACCESS

Team members are not permitted to engage in solicitation for any group, charity or organization during their working time or the working time of the person being solicited. Working time does not include mealtime and rest periods. This prohibition applies to solicitation and distribution by team members and non-team members alike, and covers soliciting in any form, whether for membership, subscription, payment of money, or any other purpose.

Team members are also not permitted to distribute printed material during working time or in working areas at any time. Furthermore, at no time may team members solicit customers or distribute materials or literature to customers unless directed to do so by a supervisor.

Team members also must not remain on or visit working areas when not on Company time except to participate in Company activities or for the purpose of patronizing the Company’s business. Team members not on company time are not to distract team members who are working. Team members are not allowed on the premise when the yard is closed without the prior specific permission of a supervisor.

In addition, the Company does not permit persons who are not team members of the Company to distribute any printed materials for any purpose on Company property unless otherwise required by law. Any person who wishes to distribute literature on Company property must first contact Human Resources to obtain permission to do so and such permission will only be granted under this policy or applicable state and/or federal law.

EMPLOYMENT OF RELATIVES

Relatives and/or friends of current team members may be eligible for employment with the Company only if (1) the individuals concerned will not work in a supervisory relationship, and (2) the employment will not pose difficulties for supervision, security, safety, or morale. The hiring of relatives and/or friends of current team members must be approved in advance by the General Manager, a member of the Executive Team, and Human Resources.

“Relatives” are defined as spouses, domestic partners, significant others, children, siblings, parents, and persons related by marriage. Present team members who marry, or who become related by marriage, will be permitted to continue employment with the Company if they do not work in a direct supervisory relationship with one another, or otherwise pose difficulties for supervision, security, safety, or morale.

ATTIRE AND GROOMING STANDARDS

Team members are expected to maintain a neat and clean appearance that is appropriate to the nature of the Company’s business and according to the nature of their work and public contact. Clothing with tears or offensive or inappropriate designs or stamps are not allowed.

Team members are expected to wear clothing and express themselves in a manner that is suitable for their position according to the standards laid out in the Dress Code policy found on the team member portal. Nothing in the Company’s policies on Attire and Grooming is intended to prevent team members from wearing a hair or facial hair style that is consistent with their cultural, ethnic, or racial heritage or identity. This policy will be interpreted to comply with applicable local, state, or federal law.

NON-FRATERNIZATION

In order to promote the efficient operation of the Company and to avoid conflicts of interest, misunderstandings, complaints of favoritism, problems of supervision, security, and morale, as well as claims of sexual harassment, SBSI strongly discourages managers and supervisors from pursuing romantic or sexual relationships with team members whom they supervise directly and/or indirectly.

If a consensual intimate relationship between a supervisor and any team member within that supervisor’s direct or indirect area of responsibility is desired, it is the supervisor’s responsibility to bring this to Human Resources attention for appropriate action. Such action may include, but is not limited to, a change in the responsibilities of the individuals involved in such relationships or transfer of location within the Company to diminish or eliminate the supervisory relationship and workplace contact that may exist.

In the event a consensual intimate relationship develops between co-workers at the same level, these team members are expected to inform Human Resources of the relationship to avoid misunderstandings and/or complaints. Human Resources may take action to change responsibilities or transfer the involved parties to another department if necessary.

Team members who violate this policy will be subject to disciplinary action, up to and including termination.

SAFETY AND SECURITY

Safety and security are the responsibilities of all team members. The management team and all team members must be equally committed to safety and security to ensure success. Personal safety, organizational security, and, ultimately the safety of those we serve will only be attained when all team members join together to maintain safe working conditions. Furthermore, our capacity to work with the customers we serve is considerably weakened by poor attention to the issue of the security and safety of our team members

WORKPLACE SAFETY

The personal safety and health of each employee of SBSI is of primary importance. The prevention of occupationally induced injuries and illnesses is of such consequence that it will be given precedence over operating productivity whenever necessary. To the greatest degree possible, management will provide all mechanical and physical facilities required for personal safety and health, in keeping with the highest standards.

To be successful, SBSI’s safety program must embody the proper attitudes toward injury and illness prevention on the part of both supervisors and team members. It also requires cooperation in all safety and health matters, not only between supervisor and team member, but also between co-workers. Only though such a cooperative effort can a safety record in the best interest of all be established and maintained.

SBSI’s objective is a safety and health program that will reduce the number of injuries and illnesses to a minimum, not merely in keeping with, but surpassing, the best experience of other operations like ours. Our goal is ZERO accidents and injuries.

SBSI’s five-point safety and health program includes:

1. Training all team members in good safety and health practices.

2. Providing necessary personal protective equipment and instructions for its use and care.

3. Developing and enforcing safety and health rules, requiring that team members cooperate with these rules as a condition of employment.

4. Providing mechanical and physical safeguards to the maximum extent that is possible.

5. Conducting a program of safety and health inspections to find and get rid of unsafe working conditions or practices; to control health hazards; and to comply fully with the safety and health standards for every job.

6. Investigating, promptly and thoroughly, every accident to find out what caused it and to correct the problem so that it won’t happen again.

We recognize that the responsibilities for safety and health are shared:

SBSI accepts the responsibility for leadership of the safety and health program, and for its effectiveness and improvement, and for providing the safeguards required to ensure safe conditions.

Our managers and supervisors are responsible for developing the proper attitudes toward safety and health in themselves and in those they manager; and ensuring that all operations are performed with the utmost regard for the safety and health of all personnel involved, including themselves.

As team members, you are responsible for unconditional, genuine cooperation with all aspects of the safety program – including compliance with all rules and regulations, and for continuously practicing safety while performing your duties.

Additional details regarding the SBSI Safety Program can be found on the team member portal.

WORKPLACE VIOLENCE

SBSI has a zero-tolerance policy concerning workplace violence. Therefore, SBSI prohibits any form of workplace violence by a team member, management, or third party, including customers, contractors, suppliers, and visitors at the workplace or on a jobsite Threats or acts of violence - including intimidation, bullying, physical or mental abuse and/or coercion will not be tolerated. Violations of this policy will result in disciplinary action, up to and including termination from employment.

Workplace violence is any intentional conduct that is severe, abusive, or intimidating to cause an individual to reasonably fear for their personal safety or the safety of their family, friends and/or property such that employment conditions are altered or a hostile, abusive or intimidating work environment is created for one or several team members. No team member should engage in any actions at any time that a reasonable person would conclude is a threat of violence to fellow workers, customers, or suppliers.

For purposes of this policy, workplace violence includes but is not limited to:

• Threatening remarks, both written and/or verbal while on company premises or while representing the Company

• Acts of violence while on Company premises or when acting in the capacity of a representative of the Company.

• All threats or acts of violence occurring off Company premises, of which a team member is a victim, if we determine that the incident may lead to an incident of violence on company premises and

• Threats or acts of violence resulting in the conviction of a team member or representative of the company, or an individual’s performing services for the Company on a contract or temporary basis, under any criminal code provision relating to violence or threats of violence when that act or the conviction adversely affect the legitimate business interest of the Company.

• Aggressive or hostile acts such as throwing objects, hitting or intentionally damaging company or a coworker's property.

Examples of conduct that may be considered threats or acts of violence under this policy include but are not limited to:

• Direct or veiled threats of physical contact or harm towards another individual, their family, friends, or associates.

• Bullying, intimidating, or harassing another person (for example, making obscene phone calls or using threatening body language or gestures, such as standing close to someone or shaking your fist at them).

• Behavior that causes another person emotional distress or creates a reasonable fear of injury, such as stalking.

• Assault.

• The intentional destruction or threat of destruction of SBSI property or another individual’s property.

• Communicating an endorsement of the inappropriate use of firearms or weapons.

Workplace violence does not refer to workplace arguments or debates that are zealous or impassioned, provided there is no resort to any form of coercion. Discussions about sporting activities, popular entertainment or current events are not considered workplace violence when there is no threat of violence being directed to the workplace or any individual connected with it. Rather, workplace violence refers to behavior that demonstrates an intention to engage in violence, condones violence in our workplace, or targets any individual with acts or threats of violence.

Team members should help maintain a violence-free workplace. To that end, team members are encouraged to immediately report any incident that violates this policy to a supervisor or manager or Human Resources. SBSI will thoroughly investigate all complaints of workplace violence and will make prompt corrective action, including discipline, if appropriate. SBSI reserves the right to contact law enforcement, if appropriate.

If you become aware of an imminent violent act or threat of an imminent violent act, immediately contact a member of management, and Human Resources.

WEAPONS

To ensure that SBSI maintains a workplace safe and free of violence for all team members, the company has a zerotolerance weapons policy which prohibits the possession or use of dangerous weapons on company property.

All SBSI team members are subject to this provision, including contract workers and temporary team members as well as visitors and customers on company property. A license to carry the weapon on company property does not supersede company policy. Unless this prohibition is contrary to state or local law, the workplace specifically includes:

• All company-owned or leased buildings and surrounding areas such as sidewalks, walkways, driveways and parking lots under the company’s ownership or control.

• All company-owned or leased vehicles, all vehicles that come onto company property and equipment.

“Dangerous weapons” include guns, rifles or firearms of any kind, explosives, incendiary devices, bow and arrows, clubs, slingshots, blackjacks, metal knuckles, knives, and other weapons that might be considered dangerous or that could cause harm, including those for which the holder has a legal permit. Team members are responsible for making sure that any item possessed by the team member is not prohibited by this policy.

Any team member in violation of this policy is subject to disciplinary action, to and including termination of employment. A team member who witnesses or suspects another individual of violating this policy should immediately report this information to Human Resources.

WORKPLACE BULLYING

The Company does not tolerate bullying behavior. Individuals who engage in workplace bullying may be disciplined, up to and including termination of employment.

Workplace bullying is the use of force, threats, or coercion to abuse, intimidate, or humiliate another team member. Workplace bullying includes, but is not limited to, the following:

• Verbal abuse, such as the use of patently offensive, demeaning, and harmful derogatory remarks, insults, and epithets.

• Verbal or physical conduct that is threatening, intimidating or obscene.

• Pushing, shoving, kicking, poking, tripping, assaulting, or threatening physical assault, or intentionally damaging a person's work area or property.

• Sabotaging, or deliberately subverting, obstructing, or disrupting another person's work performance.

Cyberbullying refers to bullying, as defined above, that occurs through the use of a computer, cell phone, smartphone, tablet, pager or other device that transmits electronic information, regardless of whether the device is owned by or located at the Company or connected to the Company network. Cyberbullying is also prohibited.

This policy in no way prohibits team members from engaging in activities that are protected under applicable state and federal laws, including but not limited to any activity that is protected under Section 7 of the National Labor Relations Act.

Reporting and Response

Team members who are subject to, or witness, workplace bullying are encouraged to notify Human Resources immediately. The Company will promptly investigate the complaint. The Company will maintain confidentiality to the extent possible, consistent with its commitment to investigating the complaint promptly and thoroughly.

If the complaint is verified, SBSI will take appropriate remedial and disciplinary action, which may include, but is not limited to, verbal or written warnings, suspension, termination of employment, counseling and other actions. The Company will also report to law enforcement, if appropriate. The complaining party will be advised of the results of the investigation.

Anti-Retaliation

The Company strictly prohibits retaliation against a team member for making a good faith claim of bullying or for participating in good faith in an investigation of bullying.

TOBACCO FREE/VAPE FREE WORKPLACE

SBSI provides a work environment that is tobacco and vape-free. Use of tobacco and vaping outside of designated areas is strictly prohibited. Tobacco and Vape products are prohibited in any building or enclosed premises of the Company, in Company vehicles or while refueling, loading, and unloading, except in designated areas. Team members that observe other individuals smoking or vaping in the workplace have a right to object and should report the violation to their supervisor or to another member of management. Designated areas for tobacco use/vaping are assigned at each work location. Questions regarding designated areas should be directed to the location manager. Team members will not be disciplined or retaliated against for reporting tobacco or vaping that violates this policy.

DRUG-FREE WORKPLACE

SBSI is committed to providing a safe work environment that is free from the effects of alcohol and drug use. The Drug-Free Workplace Policy has been adopted for the benefit of everyone with the intent to reduce accidents and injuries and lessen injury claims and property loss. To the extent permitted by state and local law, this policy covers illegal drugs, including medical marijuana prescribed, narcotics, alcohol and inappropriate use of legal drugs that impair a team member’s ability to perform their job. It is the policy of the Company to prohibit the use, sale, attempted sale, conveyance, distribution, manufacture, purchase, attempted purchase, possession, cultivation and/or transfer of legal or illegal drugs, alcohol, or other intoxicants at any time, and in any amount or any manner on the company premises or while representing the company. "Illegal drugs" means all drugs whose use or possession is regulated or prohibited by federal, state or local law. “Legal drugs” means all drugs acquired through a medical prescription.

Drugs and alcohol can seriously impair a team member’s performance, as well as jeopardize the health and safety of all team member, customers and others who come in contact with them. SBSI prohibits being or reporting to work while under the influence of alcohol, other intoxicants and any drug that could impair judgement. In addition, a team member’s off-duty activity of any lawful intoxicants, such as alcohol, must not interfere with a team member’s job performance.

To the extent that any federal, state, or local law or regulation limits or prohibits the application of any provision of this policy, then that particular provision will be ineffective in that jurisdiction only, while the remainder of the policy remains in effect.

Pre-Employment, Post-Accident & Reasonable Suspicion

Each Team member, as a condition of employment, will be required to participate in pre-employment, post-accident, reasonable suspicion, and follow-up testing upon selection or request of management.

Team members may be tested for drug and alcohol use during the pre-employment application process, or for a post-accident work-related injury, including team members who may not have been injured but upon appropriate investigation are deemed by management as a contributor to the work-related injury. Team members may also be tested if reasonable suspicion exists to believe the team member is conducting Company business under the influence of drugs or alcohol.

If such reasonable suspicion is determined to exist by a supervisor of the Company or Human Resources the supervisor or Human Resources must document all accounts or examples of behaviors exhibited by the team member which account for the reasonable suspicion. The Team member is to be removed from conducting Company business until a Company officer can communicate and initiate the reasonable suspicion drug and alcohol drug test processes.

Refusing to comply with a post-accident and/or reasonable suspicion drug and alcohol test will be considered a voluntary termination of employment. If a team member refuses to comply and is not in a condition to transport themselves home, management will either transport the team member home or call a transportation company Should a team member voluntarily refuse to comply with a drug and alcohol test and leaves the premises using a mode of motorized or manual transportation (car, motorcycle, bicycle, ATV, or any other motorized/mechanical mode of transport requiring the team member to operate, etc.), professional emergency responders will be notified of the team member’s departure from the workplace.

SBSI will not require any individual, management, or general staff to provide rides to team members required to complete a reasonable suspicion drug and alcohol test.

All drug-testing information will be maintained in separate confidential records and will not be included in team members’ personnel files.

Alcohol at Company Sponsored Events

Notwithstanding this policy, from time to time, the Company may sponsor social or business-related events where alcohol may be served. This policy does not prohibit the use or consumption of alcohol at these events. However, any team member who chooses to consume alcohol at such events, must do so responsibly and conduct themselves properly and professionally at all times, in full compliance with all Company policies. Team members at such events are strictly prohibited from driving following consumption of any quantity of alcohol that could impair their ability to drive safely, and must request assistance if a ride is needed. These Company-sponsored or approved functions are the only times that consumption of alcoholic beverages on Company time or premises is acceptable.

Prescription and Over-the-Counter Drugs

This policy does not prohibit the possession and proper use of lawfully prescribed or over-the-counter drugs. However, a team member taking medication should consult with a health care professional or review dosing directions for information about the medication's effect on the team member’s ability to work safely, and promptly disclose any work restrictions to a supervisor or Human Resources. Team members are not required to reveal the name of the medication or the underlying medical condition.

The Company reserves the right to transfer, reassign, place on leave of absence or take other appropriate action regarding any team member during the time the team member uses medication that may affect their ability to perform safely. The Company will comply with all requirements pertaining to providing reasonable accommodations to the extent required by applicable law.

The Company's general prohibition against the possession or use of marijuana at work applies, regardless of whether a team member is certified to use marijuana for medical reasons under state law. Unless otherwise required by law, the Company will not accommodate the use or possession of marijuana by individuals who are medically authorized to use marijuana as a matter of state law but will consider offering alternative accommodations related to any underlying disability. If you have any questions concerning the Company's position concerning medical marijuana in a particular location, please contact Human Resources.

Counseling and Rehabilitation

Team members who voluntarily seek help for substance abuse (self-referral) by contacting the Company will be provided an opportunity to pursue counseling and rehabilitation. The Company will make available to these team members information about counseling and rehabilitation services. A team member who is receiving counseling

and/or treatment for substance abuse may use available PTO or, if eligible, FMLA leave. Health insurance often covers the costs of such services, but costs not covered must be paid by the team member. The team member cannot return to work until released by a treatment provider to do so, and when they receive a negative result on a returnto-work drug and/or alcohol test (as appropriate for that individual). In addition, the team member may be asked to submit to follow-up testing for a period following the return to work.

A team member’s decision to seek help voluntarily will not be used as a basis for disciplinary action, although the individual may be transferred, given work restrictions or placed on leave, as appropriate. A request for help is considered voluntary only if it is made before the team member is asked to submit to any drug or alcohol test or is discovered to have otherwise violated this policy.

Team members who observe unusual behavior patterns on the part of co-workers that may be the result of alcohol and/or drug use should notify their supervisor, manager, or Human Resources. The Company reserves the right to have any team member tested in accordance with guidelines in the Drug-Free Workplace Policy. If a team member is discovered under the influence while on the job, he or she will be required to leave the premises and will be escorted or provided transportation home. Consequences for such violations can be reviewed in the Drug-Free Workplace Policy.

COMPANY’S RIGHT TO SEARCH

The Company wishes to maintain a work environment that is free of illegal drugs, alcohol, firearms, explosives, or other improper materials. SBSI reserves the right at any time and at its discretion, with or without notice, to search all company-owned or leased, vehicles and all vehicles, plus packages, containers, briefcases, purses, lockers, desks, enclosures, and persons entering its property, for the purpose of determining whether any weapon or illegal drugs are being, or has been, brought onto its property or premises in violation of the Company’s safety policies.

Team members should not, and do not, have an expectation of privacy on Company premises as applied to the search of Company property. In addition, to ensure the safety and security of team members and customers, and to protect our legitimate business interests, we reserve the right to question and inspect or search any team member or other individual entering or leaving company premises or job sites at any time. The individual may be requested to self-inspect their personal property or person by displaying the contents of any packages and/or turning out their pockets, etc., in the presence of a representative of the Company, typically management of the same gender.

Team members who fail or refuse to promptly permit a search under this policy will be subject to discipline up to and including termination.

To the extent that any federal, state, or local law or regulation limits or prohibits the application of any provision of this policy, then that particular provision will be ineffective in that jurisdiction only, while the remainder of the policy remains in effect.

Cameras and Video Surveillance

To promote the safety of team members and company visitors, as well as the security of its facilities, the Company reserves the right to conduct video surveillance of any portion of its premises at any time. Video cameras will be positioned in appropriate places within and around company buildings. The only exceptions to this policy include private areas of restrooms, lactation areas, showers, and dressing rooms.

Use of Recording Devices Prohibited

To promote the safety of team members and company visitors, as well as the security of Company facilities, team members are prohibited from conducting video surveillance or audio recording on Company premises or of any Company property without prior written consent from the CEO or Human Resources. Team members who fail or refuse to comply with this policy will be subject to discipline up to and including termination.

VISITORS

Restricting access to company premises helps maintain safety standards, protect against theft, ensure security of equipment, protect confidential information, safeguard team member welfare, and avoid potential distractions and disturbances. For this reason, only authorized visitors are allowed in the workplace and all authorized visitors, including friends, family, and former associates, must register with front desk personnel or the local manager. All visitors must be always escorted by an SBSI team member.

Team members being visited are responsible for the actions of their guest(s). Should a guest of a team member act in such a manner that disrupts the normal working conditions of the Company or threatens the security of the Company and/or its team members, the team member accompanying the guest may be held responsible for the guest's actions and subject to disciplinary action, up to and including termination of employment.

The Company reserves the right to verify the contents of packages and briefcases brought onto company premises by visitors and guests.

If a team member suspects or becomes aware of any unusual situation, they should immediately notify a senior member of local management and/or Human Resources.

COMPUTER & TECHNOLOGY ACCEPTABLE USE POLICY

SBSI entrusts its team members with a wide range of technology and other tools that make it possible for team members to do their jobs effectively and efficiently. Company-provided desktop and laptop computers, tablets, telephones, cell phones, smartphones, IM technology, voice mail, email, fax and copy machines and other communication and information systems are to be used for business purposes.

SBSI maintains security tools to monitor all incoming and outgoing electronic traffic on the Company network. All messages sent, received, composed and/or stored on or using these tools are the property of the Company and considered to be proprietary information of the Company. Users are expected to lock their systems when they are not in use or have stepped away. Team members are prohibited from using SBSI systems or Company provided internet access for any unlawful activity or for personal gain. If such activity occurs, disciplinary action, up to and including termination, and related civil and criminal penalties could result.

The Company reserves the right to inspect, search, review and confiscate any devices issued to or used by team members. Team members have no expectation of privacy in any content composed, sent, received, or stored on these Company-provided computer systems, tools and devices. In line with our general non-solicitation policy, email, texts or IMs using the Company's technology resources must not be used to solicit for outside business ventures, personal parties, social meetings, charities, membership in any organization, political causes, religious causes, or other matters not connected to the Company’s business. Team members may not use their telephones or any other device to record conversations with other team members without the other team members' consent or knowledge.

Team members are responsible for maintaining a professional work environment that promotes respect for all people. These standards are created to ensure that electronic communications devices are used in a legal, ethical, and appropriate manner by all team members.

Although it is not possible to identify all types of impermissible use of electronic communications devices, examples of inappropriate use of Company communication equipment include, but are not limited to:

• Making derogatory or vulgar statements regarding any classification protected by federal, state, or local laws (or any use that violates the Company’s anti-discrimination and/or anti-harassment policies).

• Accessing, forwarding, sending, possessing, or copying sexually explicit or inappropriate materials.

• Unauthorized sending of sensitive, confidential and/or proprietary information of the Company.

• Supporting illegal activities (as referenced in all governmental laws and regulations of every jurisdiction that apply to our business).

• Using any device for commercial purposes that, in the judgment of the Company, is not for the direct and immediate benefit of the Company.

• Using any device in a manner that infringes on the proprietary interest, trademark, trade secret or copyright rights of others.

• Using any device in any manner that is competitive (directly or indirectly) to the interest of the Company, or in any way that creates an actual or apparent conflict of interest with the team member’s employment with the Company.

• Unauthorized reading, recording, copying, or listening to messages and information delivered to another person’s e-mail, voicemail, Company mailbox, or by way of facsimile. Team members are required to identify all misdirected communications, particularly those marked as “privileged and confidential” or “attorney/client privilege” upon receipt of a misrouted electronic communication.

Computer passwords, e-mail accounts, and the like are designed for team member access only and team members should never allow any other person, including co-workers, to access their accounts. E-mail accounts should be used only for the Company’s business-related purposes. While personal communication is permitted on a limited basis, non-Company related commercial uses and solicitations are prohibited.

With the ever-changing landscape of data protection, security, and cyber threats Personal devices (computes, tablets, cell phones, etc.) should not be used to access the SBSI network without prior authorization. Applications and VPN’s should not be loaded on personal computers without receiving prior permission.

If team members inappropriately use the Company’s communication equipment, they will be subject to disciplinary action, up to and including immediate termination. For further information, you may contact Human Resources

SOCIAL MEDIA POLICY

Certain team members may be authorized by the Company to use social media – such as Facebook, LinkedIn, Twitter, Instagram or other social media – on behalf of the Company and as part of their job duties. Prior approval is required, and the Company may provide training or Company best practices on the proper use of social media as appropriate.

When authorized to perform work on behalf of the Company, team members should use their real names and the applicable SBSI logo when posting on the Company’s behalf. In using authorized social media posts via the Company’s computers on behalf of the Company, team members are prohibited from disparaging the Company, its customers and vendors and from divulging any trade secrets or other confidential Company information. In using authorized social media posts on the Company computers, team members are also required to comply with all the Company policies, including the Company’s anti-discrimination, harassment policies, internet, e-mail and voicemail policies and confidentiality policies. Team members shall not speak or write on behalf of the Company without proper authorization.

Team members have no right or expectation of privacy when engaging in social networking and should be mindful that anything they post may be shared with other Company team members and management. These are public forums and subject to review by the Company. Team members should be respectful of those individuals to whom they are communicating especially other team members, vendors and contractors and Company business team members who may see the post. As a practical matter, it may be impossible to delete information that is shared. Comments may be publicly available for years. Team members should always make it clear that their opinions do not represent those of the Company. They should include disclaimers in online communications advising that they are not speaking officially or unofficially on behalf of the Company.

Team members are prohibited from providing a link to the Company’s internal or external website on any blog or social networking or other website, unless expressly authorized otherwise by a Company director or higher in each instance. Strictly prohibited is the posting or linking to any of the Company’s internal communications, whether relating to the Company’s activities, business, personnel or other matters.

FLEET POLICY

It is the policy of SBSI to conduct its business on the highest professional level in all phases of activities. Collisions, poor driving habits, breakdowns of equipment, early replacement of equipment due to poor maintenance or abuse do not contribute to our success as a company. We expect a strong effort to keep our drivers safe and our vehicles collision free and maintained in safe operating conditions.

Team members who are furnished with a Company vehicle are expected to exercise reasonable care in maintaining and operating the vehicle and to maintain the vehicle’s cleanliness. Company vehicles are provided for business use only. No unauthorized riders or passengers are permitted inside Company vehicles without prior written permission is granted.

Any team member being hired in a position that requires driving Company vehicles must provide a current driving record prior to working in that position and have the appropriate driver’s license. Team members driving commercial vehicles are subject to requirements under the Department of Transportation. The Company reserves the right to determine if a driving record disqualifies an individual from driving Company vehicles. Team members who drive Company vehicles must notify their supervisor of any traffic convictions, change of status in their driver’s license or vehicle operation issues.

In the interest of the safety of our team members and other drivers, all team members are expected to follow applicable local, state, and federal laws and regulations regarding the use of cell phones while driving. If a team member’s job requires a cell phone is used while driving, the team member must use a hands-free device or safely pull off the road before conducting Company business. Team members are not permitted to be on video while operating a vehicle. Violations of this policy could result in disciplinary action up to and including termination.

TEAM MEMBER BENEFITS

BENEFITS SUMMARY

This guide provides a brief description of the benefit plans and programs that are in effect at the time of publication. Team members are provided the Benefits Guide, summary plan descriptions and other relevant information at the time of hire, during open enrollment each year. These resources may be found on the team member portal.

Regular full-time team members are eligible for health benefits on the first day of the month following 30 days of employment. Newly hired team members are encouraged to apply for benefits within 30-days of their eligibility date or they may not be allowed to apply until an open enrollment period and at that time evidence of insurability may be required. No benefit is guaranteed upon application and current benefits may change yearly.

Refer to the SBSI Benefits Guide for details on the following health benefits offered by the Company.

• Medical & Health Savings Account

• 401K

• 24/7/365 Physician Access

• Dental

• Vision

• Prescriptions

• Life Insurance and Accidental Death & Disability

• Employee Assistance Program

• Will Preparation Services

• Voluntary Benefits

- Short/Long Term Disability

- Critical Illness

- Accident Insurance

- Hospital Indemnity

For further questions on benefits, details on the benefits program can be found on the team member portal.

OTHER BENEFITS

Equity Appreciation Rights Plan: Full-time team members are offered the opportunity to participate in an equity value creation program that yields value to the team member upon a change in control of the Company. Details of this plan and the associated plan documents are shared with team members shortly following their employment with SBSI.

Team Member Purchases: Eligible team members are offered the opportunity to purchase items from SBSI at a discount and are also permitted to establish credit accounts for large purchases. Details regarding SBSI’s policy on this benefit can be found on the team member portal.

Team Member Referral Program: Some of SBSI’s best team members have come from team member referrals. Because of this, the Company provides an incentive to team members for referring a person hired by the Company. Details regarding the Team Member Referral Program can be found on the team member portal.

TIME AWAY FROM WORK

SBSI provides a variety of options for a team member to take time away from work. SBSI requires that time off be requested at least two weeks in advance. SBSI will make every effort to honor requests for time off however, due to the nature of the business, some requests may not be granted for the time requested.

PAID TIME OFF

The Company believes it is important for everyone to take time off from work to spend time with friends and family, relax and recharge. We encourage and expect eligible team members to take paid time off (PTO) every year. Nonexempt team members are not permitted or authorized to perform any work during PTO.

Regular Full-Time Team Members

Regular, full-time team members are eligible for PTO at their base pay rate, not including overtime. PTO accrues each pay period from the team member’s first day of employment Team members are only permitted to utilize accrued PTO hours and are not permitted to “go negative” in their PTO bank without approval from a GM or the CEO. Once approved by a supervisor, PTO may be taken in increments of two (2) hours or more. The Company may require team members to take half of their annual hours by the middle of the calendar year to ensure a proper balance of staffing levels during peak business seasons.

If a team member voluntarily resigns, provides a minimum of a two weeks’ notice and works through that notice period, he/she will be paid any accrued but unused PTO. Team members who are involuntarily terminated will not be paid their accrued PTO. A maximum of 40 hours of PTO may be rolled into a new calendar year. The Company will not pay out cash to team members in lieu of PTO.

To the extent that any federal, state, or local law or regulation limits or prohibits the application of any provision of this policy, then that particular provision will be ineffective in that jurisdiction only, while the remainder of the policy remains in effect

HOLIDAY PAY

Regular full-time team members are eligible for paid holidays. Team members on leaves of absence are not eligible for holiday pay. The listing of observed holidays and the associated dates will be posted by the Company each year and can be found on the team member portal

Full-time non-exempt team members will receive eight (8) hours of pay for each holiday based on the team member’s regular hourly rate exclusive of other forms of compensation (such as bonuses, shift differentials, incentives, etc.). Paid holidays are not considered time worked for purposes of determining overtime pay.

To be eligible for a Company paid holiday, the team member must be present for their schedule immediately before and after the holiday unless PTO has been previously approved. Should the team member be unable to work either of these two days because of illness, proof of illness may be required to qualify for the paid holiday.

Due to the nature of the business, the Company reserves the right to schedule work on an observed holiday. The following table describes how holidays will be paid.

Holiday falls on the team member’s regularly scheduled day.

Holiday falls on the team member’s regularly scheduled day off.

Location closed on holiday

Location open on holiday

Team member takes the day off and receives holiday pay.

Team members who work on a holiday will receive straight pay and a floating holiday to be taken within 30 days.

BEREAVEMENT

Team member will receive a floating holiday to be taken prior to the end of the calendar year.

Team member will receive a floating holiday to be taken within 30 days.

In the unfortunate event there is a death of a member of an immediate family, a full-time regular team member will be granted three (3) paid bereavement days (24 hours) to be away from work. In the context of bereavement pay, an immediate family member is a spouse or domestic partner, child, parents, siblings, father-in-law, mother-in-law, daughter-in-law, son-in-law, grandparent, or grandchild. Documentation of the death may be required when the team member returns to work. If additional time off is needed, the team member is encouraged to speak with a supervisor or Human Resources to discuss options of paid or unpaid leave.

JURY OR WITNESS DUTY

If called to serve as a juror or witness in a legal proceeding, the Company will provide the team member’s regular base pay. Copy of court payment is required. Upon receipt of a jury duty notice or subpoena, a team member must furnish a copy to his/her supervisor and Human Resources, so that necessary provisions can be made in the team member’s absence.

Upon completion of jury or witness duty, certification of the specific date(s) served must be provided to Human Resources. If a team member is not required to report, or is released early from jury or witness duty, the team member is expected to immediately return to work.

TIME OFF TO VOTE

The Company encourages all team members to fulfill their civic responsibilities and to vote in official public elections. Generally, working hours are such that a team member will have ample time to cast a vote before or after the work shift. If team members do not have sufficient time to vote, however, that team member should discuss the matter with a supervisor. The Company will comply with all applicable state and municipal voting time laws.

LEAVES OF ABSENCE

Family Medical Leave of Absence (FMLA)

In accordance with the federal Family Medical & Leave Act (“FMLA”), the Company provides a leave of absence in certain situations for team members who are disabled from working, need to be away from work for civic duty, family care, or personal reasons. Team members who can anticipate the need for a leave of absence should notify their supervisor or Human Resources as soon as possible so that the appropriate information can be obtained and the team member’s request for time off can be reviewed.

Eligible team members who work for the Company can take up to 12 weeks of unpaid, job-protected leave in a 12month period for the following reasons:

• The birth of a child or placement of a child for adoption or foster care.

• To bond with a child (leave must be taken within one year of the child’s birth or placement)

• To care for the team member’s spouse, child, or parent who has a qualifying serious health condition

• For the team member’s own qualifying serious health condition that makes the team member unable to perform the team member’s job.

• For qualifying exigencies related to the foreign deployment of a military member who is the team member’s spouse, child, or parent.

An eligible team member who is a covered service member’s spouse, child, parent, or next of kin may also take up to 26 weeks of Family Medical Leave Act (FMLA) leave in a single 12-month period to care for the servicemember with a serious injury or illness. A team member does not need to use leave in one block. When it is medically necessary or otherwise permitted, team members may take leave intermittently or on a reduced schedule.

All leaves of absence will be considered as time off without pay unless required by law or otherwise agreed to by the Company. Team members are required to use accrued PTO while taking FMLA leave.

Holidays are not paid, and PTO pay is not accrued during a leave of absence. However, the team member may be entitled to supplement payments through the state, workers’ compensation benefits for work-related injuries or illnesses, and/or the Company’s Disability Plan.

Benefits and Protections

While team members are on FMLA leave, the Company will continue health insurance coverage as if the team members were not on leave. Premium payments must be made to the team member during or after return from leave. Upon return from FMLA leave, most team members will be restored to the same job or one nearly identical to it with equivalent pay, benefits, and other employment terms and conditions. The Company will not interfere with a team member’s FMLA rights or retaliate against someone for using or trying to use FMLA leave, opposing any practice made unlawful by the FMLA, or being involved in any proceeding under or related to the FMLA.

Eligibility Requirements

A team member who works for a covered employer must meet three criteria in order to be eligible for FMLA leave. The team member must:

• Have worked for the employer for at least 12 months

• Have at least 1,250 hours of service in the 12 months before taking leave

• Work at a location where the employer has at least 50 team members within 75 miles of the team member’s worksite.

Requesting Leave

Generally, team members must give 30-days’ advance notice of the need for FMLA leave. If it is not possible to give 30-days’ notice, the Company must be notified as soon as possible and, generally, follow usual procedures.

Team members do not have to share a medical diagnosis but must provide enough information to the Company so it can determine if the leave qualifies for FMLA protection. Sufficient information could include the Company that the team member is or will be unable to perform his or her job functions, that a family member cannot perform daily activities, or that hospitalization or continuing medical treatment is necessary. Team members must inform the Company if the need for leave is for a reason for which FMLA leave was previously taken or certified.

The Company requires a certification or periodic recertification supporting the need for leave. If the Company determines that the certification is incomplete, the team member will be provided a written notice indicating what additional information is required.

Employer Responsibilities

Once the Company becomes aware that a team member’s need for leave is for a reason that may qualify under the FMLA, the Company will notify the team member if he or she is eligible for FMLA leave and, if eligible, will also provide a notice of rights and responsibilities under the FMLA. If the team member is not eligible, the Company will provide a reason for ineligibility.

The Company must notify its team members if leave will be designated as FMLA leave, and if so, how much leave will be designated as FMLA leave.

Enforcement

Team members may file a complaint with the U.S. Department of Labor, Wage and Hour Division, or may bring a private lawsuit against an employer. For additional information or to file a complaint, contact the U.S. Department of Labor, Wage and Hour Division at www.dol.gov/whd or (866) 487-9243.

The 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.

Personal Leave of Absence

The Company provides a leave of absence in certain situations for team members who are disabled from working outside of a work-related injury or illness, need to be away from work for civic duty, family care, or personal reasons if the team member is not eligible for FMLA

To be eligible for a Personal Leave of Absence, the team member must:

• Be a regular, full-time team member.

• Have worked for the team member for at least 30 days.

• Use all accrued paid time off during the leave time but may not use PTO that has not been accrued.

• Pay their portion of benefit premiums during leave.

• Be in good standing with the Company related to performance.

Team members who can anticipate the need for a leave of absence longer than five (5) consecutive days should notify their supervisor or Human Resources as soon as possible so that the appropriate information can be obtained and the team member’s request for time off can be reviewed. A Personal Leave of Absence may not extend beyond 30 days within the team member’s first 12 months of employment.

All leaves of absence will be considered as time off without pay unless required by law or otherwise agreed to by the Company. Holidays are not paid, and PTO is not accrued during a leave of absence. However, the team member may be entitled to supplement payments through the state, workers’ compensation benefits for work-related injuries or illnesses, and/or the Company’s Disability Plan.

Team members will not be discriminated or retaliated against for taking authorized leaves of absence. Failure to return from a leave of absence on the agreed upon date will be deemed a voluntary resignation.

NON-FMLA LEAVES

SBSI may grant an unpaid extended leave of absence to team members who require more time off than other leave policies allow. Reasons may include, but are not limited to, fulfillment of unanticipated personal obligations or additional family and medical leave beyond the legal entitlement.

To request unpaid leave, team members should contact Human Resources. Team members must provide as much advance notice as possible of their need for an extended leave of absence. SBSI understands that due to circumstances, advance written notice may not always be possible and each request will be considered on its own merits.

SBSI grants or denies requests for unpaid leave on a case-by-case basis, considering the requesting team member’s length of service and work record, the business needs of the Company, and the reason for, and length of, the leave requested. The amount of unpaid leave that may be granted depends upon the circumstances, but in no event may exceed twelve weeks unless approved by the CEO. Team members taking an unpaid extended leave of absence will be required to exhaust their accrued paid leave benefits, subject to applicable law.

Team members, who are granted an unpaid leave of absence for medical reasons, may not take or work at another job without the written authorization of SBSI. Taking or working at another job while on a medical leave of absence without authorization may be grounds for immediate termination.

Prior to beginning an extended leave of absence, it is the team member’s responsibility to contact Human Resources to learn what steps must be taken to protect the team member’s benefits. While on leave, benefits will not continue to accrue unless otherwise provided by law.

Failure to return to work in accordance with our policies at the end of a scheduled leave may be considered a voluntary resignation.

MILITARY LEAVE OF ABSENCE

Both state and federal law provide team members with the right to take leave to serve in the military. At the federal level, military leave rights are governed by the Uniformed Services Employment and Reemployment Rights Act, commonly referred to as USERRA. This policy discusses military leave under USERRA.

USERRA establishes a "floor" for team member' rights with respect to military leaves. States may provide team members with greater or additional rights with respect to military leaves than those under USERRA. If the team member works in a state that provides rights greater than those provided under USERRA, the Company will provide those rights. If a team member plans to request leave based on military service, they should contact Human Resources for information on any additional rights or requirements, if applicable, under state law.

Eligibility for Leave

The Company provides unpaid military leaves of absence to team members who serve in the uniformed services as required by USERRA and applicable state laws. The uniformed services are defined as the Army, Navy, Marine Corps, Air Force, Coast Guard, Army National Guard, Air National Guard, Commissioned Corps of the Public Health Service and any other category of persons designated by the President of the United States in time of war or national emergency. The uniformed services also include participants in the National Disaster Medical System when activated to provide assistance in response to a public health emergency, to be present for a short period of time when there is a risk of a public health emergency, or when they are participants in authorized training.

Service consists of performing any of the following on a voluntary or involuntary basis: active duty, active duty for training, initial active duty, inactive duty training, full time National Guard duty, state active duty, absence from work for an examination to determine fitness for such duty, and absence for performing funeral honors duty.

Total military leave time may not exceed five years during employment, except in certain, defined circumstances.

Notice of Leave

Advance notice of leave is required unless giving of notice is impossible or unreasonable, or notice is prohibited by military necessity (which is defined by the United States Department of Defense). When notice is required, Team members must provide their supervisor with as much advance notice as possible of any anticipated leave of absence for military service.

Compensation and Benefits During Leave

Unused PTO will be paid during military leave at the team members’ request. After 30 days of continuous military leave, team members may elect to continue their health plan coverage at their own expense, for up to 24 months or during the remaining period of service, whichever is shorter.

Reinstatement

To be eligible for reinstatement, a team member must have provided advance notice of the need for military leave (where required) and have completed their service on a basis that is not dishonorable or otherwise not protected under USERRA.

Team members whose military service will be for fewer than 31 days must report back to work at the beginning of the first full, regularly scheduled workday following completion of service, after allowing for a period of safe travel home and eight hours of rest.

Team members whose military service will be for more than 30 days, but fewer than 181 days must apply for reemployment within 14 days after completing service.

Team members whose service is greater than 180 days must apply for re-employment within 90 days after completing service.

As with other leaves of absence, failure to return to work or to reapply within applicable time limits may result in loss of reemployment rights. Full details regarding reinstatement are available from Human Resources.

In general, a team member returning from military leave will be re-employed in the position and seniority level that the team member would have attained had there been no military leave of absence. If necessary, the Company will provide training to assist the team member in the transition back to the workforce.

PTO benefits do not continue to accrue during a military leave of absence. A team member returning from military leave is entitled to any unused, accrued PTO benefits the team member had at the time the military leave began minus any PTO benefits the team member chose to use during the leave. Upon reinstatement, the team member will begin to accrue PTO benefits at the rate they would have attained if no military leave had been taken.

WORK-RELATED INJURIES OR ILLNESSES

A team member who sustains a work-related injury should inform his or her supervisor and Human Resources immediately and complete an incident report. No matter how minor an on-the-job injury may appear, it is important it be reported and documented immediately.

Team members who sustain work-related injuries may be eligible for workers’ compensation benefits in accordance with the Company’s workers’ compensation insurance policy. Team members needing time off from work due to an on-the-job injury may also be eligible for a leave of absence under the Company’s leave and reasonable accommodation policies. Human Resources may be contacted for additional information.

Team members who are ready to return to work following a workers’ compensation-related leave must supply a certification form from a health care provider confirming the team member’s ability to return to work.

The Company will notify the insurance company if it has any reason to believe a team member has supplied false or misleading information in connection with a claim or has filed a fraudulent claim.

Team members are classified as Full-time, Part-time, or Temporary, as well as Exempt or Non-exempt. Regardless of classification, however, all team members are subject to the “at-will” statement.

Regular full-time team members work 30 hours or more per week on a regular basis and are eligible for all team member benefits, although some benefits will be adjusted depending on the team member’s regular work schedule.

Regular part-time team members work less than 30 hours per week and are eligible for some team member benefits as mandated by law.

Temporary team members are those employed for short-term assignments. Short-term assignments are periods of 1,000 hours or less Temporary team members are not eligible for team member benefits except those mandated by applicable law.

Non-exempt team members are entitled to overtime compensation in accordance with applicable federal and state wage and hour laws.

Exempt team members are salaried team members, typically executive, supervisors, managers, administrators, professionals, and salespeople who are not subject to the overtime requirements of federal and state law.

EMPLOYMENT OF MINORS

Minors under the age of 18 must have written parental permission and, if applicable (state specific), a schoolwork permit. No minor will be considered for employment if under the age of 16. Employment of persons under the age of 17 are subject to the Fair Labor Standards Child Labor Provisions or state specific law. No one under the age of 18 may drive a forklift or operate heavy machinery.

REHIRES

Team members who were part of an involuntary reduction in force, as well as those team members who voluntarily resigned, will be eligible for rehire if they had a satisfactory work record while employed by SBSI.

Former team members who had a less-than-satisfactory work record will not be considered for rehire. This includes team members with a less-than-satisfactory rating on their most recent performance evaluation and/or team members who terminated employment with an unresolved performance improvement plan.

Team members who were involuntarily terminated by SBSI or were selected for layoff due to less-than-satisfactory work performance will not be considered for rehire.

Service Restoration Rules for Eligible Team Members

1. If a former team member with less than one year’s prior service is rehired, the team member will be considered a new team member and will not be eligible for prior service recognition for seniority or benefit plan participation purposes.

2. If a former team member with more than one year’s prior service is rehired, the team member’s seniority and eligibility to participate in company benefits plans will be bridged if the team member is rehired and the period of prior company service exceeded the duration of the period of absence. Service recognition will include prior service recognition for accrued leave plans.

3. If a former team member with more than one year’s prior service is rehired and the duration of the period of absence exceeded the period of prior company service, the team member will be considered a new team member and will not be eligible for prior service recognition for seniority or benefits plan participation purposes.

Rehire Service Date Adjustment

When recognition of prior service is granted, a rehired team member’s company service date will be adjusted in accordance with the service restoration rule.

PAY PERIOD

Based upon the team member’s location, payroll is processed either weekly or bi-weekly. All team members are paid on Fridays for the pay period that ended on the preceding Saturday. Pay schedules can be found on the team member portal.

Direct deposit of paychecks is encouraged in all locations. Paychecks will not be provided in advance. The Company takes all reasonable steps to ensure that team members receive the correct amount of pay in each paycheck and are paid promptly on the scheduled payday. In the unlikely event there is an error with respect to a paycheck, Human Resources should be contacted immediately.

PAYROLL DEDUCTIONS

The Company withholds certain amounts from each pay period such as federal and state income taxes, social security and state disability insurance. The Company also complies with court-ordered garnishments. A team member is notified of all garnishments or wage assignments In addition, the Company offers benefit programs for which eligible team members may voluntarily authorize deductions from pay.

TIME KEEPING

Applicable laws require the Company to keep accurate records of the time worked by all team members who are covered by wage-hour regulations. The Company provides a means of recording time worked to covered team members by providing timecards or other time recording devices to which should reflect the time in which any work is done.

Hourly team members may not begin working until they have clocked in or prior to the recorded starting time on their timesheet. Working "off-the-clock" for any reason or requesting that another team member work "off-theclock," is a violation of Company policy. If a team member forgets to clock in or out, or if a team member believes their time record(s) is incorrect, the team member must notify a supervisor or Human Resources immediately, so the time can be accurately recorded for payroll purposes.

Deliberately falsifying time worked in any manner is a serious infraction of the Company rules. Punching in/out for another team member, completing another team member's timecard, allowing another team member to complete your timecard, allowing another team member to punch in/out for you, or altering any timekeeping records are also prohibited.

OVERTIME

The nature of SBSI’s business sometimes requires that team members work longer than their regularly scheduled shift. It is our hope that these requests for extra hours are held to a minimum and required only when necessary to accomplish the work which must be done. When the extra hours worked total more than 40 in a workweek, overtime pay (time and one-half the regular rate of pay) will be triggered. Overtime pay is based on actual hours worked. Paid time off, holidays or any leave of absence in the workweek will not be considered hours worked for purposes of performing overtime calculations.

Non-exempt team members are required to obtain authorization from their direct supervisor for all overtime work. Working overtime without authorization may be grounds for disciplinary action. However, non-exempt team members will be paid for all hours worked, regardless of whether the overtime was authorized. When working overtime, the team member will be paid overtime pay in accordance with the federal wage and hour law and any applicable state law providing your position is not exempt from overtime. Overtime compensation will not be paid to exempt team members.

REST BREAKS AND MEAL PERIODS

All team members are provided and encouraged to take daily meal and/or rest breaks consistent with their responsibilities and applicable law. Rest breaks and meal periods are to be uninterrupted by work. All non-exempt team members are required to take their meal and rest periods away from the area where work is normally conducted to avoid interruption, need not take the meal and rest periods on-premises and should not perform any work during a meal or rest break. If any team member is prevented from taking a meal period or rest break, or is interrupted during this time, he/she should immediately contact Human Resources to report such conduct.

Team members who do not comply with this policy, who fail to take their timely and complete meal or rest periods in accordance with this policy, or who fail to timely return to work following their meal or rest periods, will be subject to disciplinary action, up to and including termination.

SBSI will comply with all state laws and regulations regarding rest breaks. and meal periods and provisions for DOT drivers. For added detail please consult your state addendum in the team member portal or discuss with your supervisor how these provisions may impact your role

LACTATION ACCOMMODATION

The Company will provide a reasonable amount of break time to accommodate a team member desiring to express breast milk for the team member's infant child. Team members needing breaks for lactation purposes may use ordinary paid rest breaks or may take other reasonable break time when needed. If possible, the lactation break time should run concurrently with scheduled meal and rest breaks already provided to the team member. If the lactation break time cannot run concurrently with meal and rest breaks already provided or additional time is needed for the team member, the lactation break time will be unpaid for nonexempt team members.

Where state law imposes more specific requirements regarding the break time or lactation accommodation, the Company will comply with those requirements.

Because exempt team members receive their full salary during weeks in which they work, all exempt team members who need lactation accommodation breaks do not need to report any extra break time as "unpaid."

The Company will provide team members with the use of a room or a private area, other than a bathroom or toilet stall, that is shielded from view and free from intrusion from co-workers and the public. The Company will make a reasonable effort to identify a location within close proximity to the work area for the team member to express and store milk. This location may be the team member's private office, if applicable.

The Company will otherwise treat lactation as a pregnancy-related medical condition and address lactation-related needs in the same manner that it addresses other non-incapacitating medical conditions, including requested time off for medical appointments, requested changes in schedules and other requested accommodations.

Each team member has a legal right to request lactation accommodations from the Company. The Company asks that team members make such requests in writing to Human Resources The Company will not discriminate against an employee for choosing to express breast milk in the workplace.

MANDATORY MEETINGS

The Company will pay non-exempt team members for their attendance at mandatory, work-related meetings. Generally, these meetings will be communicated to team members in advance. Should there be any question about required attendance at a meeting or pay for non-exempt team members to attend a meeting, team members should discuss with their supervisors.

SBSI may allow certain team members to work remotely if their job duties and work performance are determined to be eligible for remote work. Eligibility will be decided on a case-by-case basis by the Company and approval will be granted following a review by the team member’s direct manager, the Executive Team and Human Resources. Team members who are approved to work remotely will be responsible to adhere to specific details of their remote work/telecommuting arrangement, such as expected work hours, equipment provided, and other important information. Any remote work/telecommuting arrangement may be discontinued by the Company at any time and at the discretion of the Company.

EMPLOYMENT ELIGIBILITY AND WORK AUTHORIZATION

SBSI is committed to employing only individuals who are authorized to work in the United States and who comply with applicable immigration and employment law. As a condition of employment, every individual must provide satisfactory evidence of his or her identity and legal authority to work in the United States within three business days of commencing employment. If the team member cannot verify his or her right to work in the United States within three business days of employment, the Company will be required to terminate his or her employment immediately.

BACKGROUND CHECKS

The Company recognizes the importance of maintaining a safe, secure workplace with team members who are qualified, reliable, and nonviolent, and who do not present a risk of serious harm to their coworkers or others. To promote these concerns and interests, the Company reserves the right to investigate an individual's prior employment history, personal references, and educational background, as well as other relevant information. Consistent with legal or contractual requirements, the Company also reserves the right to obtain and to review an applicant's or a team member's criminal conviction record, and related information, and to use such information when making employment decisions, but only to the extent permissible under applicable law.

A pending criminal matter may be considered in appropriate circumstances for business-related reasons, consistent with applicable law. All background checks will be conducted in strict conformity with the federal Fair Credit Reporting Act (FCRA), applicable state fair credit reporting laws, and state and federal antidiscrimination and privacy laws. The Company is an equal opportunity employer and will comply with applicable federal, state and local laws relating to the use of background checks for employment purposes.

PERSONNEL FILES

Team member personnel records are maintained in our human resources department. As required by law, some records pertaining to team members are maintained in separate files relating to medical issues and internal investigations. Team members, or their representatives, may request access to their basic personnel file. Depending upon the circumstances, team members may be provided access to records pertaining to internal investigations, with appropriate redactions to protect the rights of others.

All requests for access to your personnel file must be provided in writing to human resources. Upon receipt of your written request, Human Resources will schedule an appointment for you to view your file during normal office hours. For purposes of this policy, your personnel file includes records related to performance and training as well as other records used for hiring, promotion and disciplinary decisions. It will not include any reference checks, medical records or investigation files. Team members are not permitted to remove any documents from the personnel file but may provide a written response to any document in the personnel file. Written responses will be attached to the original document in the personnel file.

Team members may request copies of documents in their personnel file. Requests for copies must also be made in writing to Human Resources.

PERFORMANCE AND EXPECTATIONS

JOB RESPONSIBILITIES

On a regular basis, we will communicate expectations and describe position responsibilities to you through a variety of forums. Supervisors will explain job duties and performance standards expected of team members. Due to the nature of the business, these job responsibilities may change at any time.

From time to time, a team member may be asked to work on a special project or to assist with other work necessary or important to the operation of a department or the Company. Team members are expected to cooperate and assist in performing such additional work when requested.

The Company reserves the right, at any time, with or without notice, to alter or change job responsibilities, reassign or transfer job positions or assign additional job responsibilities.

PERFORMANCE REVIEWS

The Company strongly encourages you and your supervisor to discuss your job performance and goals on an informal and periodic basis. Formal and/or written performance reviews may be made at any time to advise team members of positive and/or unacceptable performance. Team members can request a performance review or performance conversation from their direct supervisor to measure areas of success and improvement opportunities. Team members should be aware that a performance review does not guarantee a pay increase or promotion.

Salary and hourly wage rates are reviewed on an individual basis. Any wage increase or decrease will be at the sole discretion of the Company and based on the team member’s attendance, quality of work, initiative, responsibility, performance, length of service with the Company, prior disciplinary action, and other non-discriminatory criteria as well as market conditions and Company profitability.

PERFORMANCE MANAGEMENT & CORRECTIVE ACTION

For SBSI to maintain professional standards with respect to its business dealings and employment relationships, it is important that all team members understand and meet the Company’s expectations regarding ethical, businesslike behavior and job performance. SBSI believes that team members and management can often solve issues through timely and frank dialogue before problems or issues escalate.

In the process of performance counseling, supervisors will make reasonable efforts to assure that a team member understands the nature of the issue and how it might be corrected. The Company’s hope is that by providing clear and reasonable performance expectations formal disciplinary action will not be required. However, if a team member fails to adhere to the Company’s standards for conduct and performance, corrective action may become necessary. The type of disciplinary action taken depends upon the seriousness of the problem as well as other relevant circumstances.

Corrective disciplinary action is the normal procedure used to address undesirable workplace conduct, with the hope that the employee will be able to change it immediately and with minimal training, if any. Performance Management is appropriate when addressing performance difficulties that may require time, clarification, or training.

Work Performance

Supervisors will establish clear standards for acceptable work performance for new hires and annually throughout the performance evaluation process. If a team member fails to meet acceptable standards for job performance, the supervisor will promptly meet with the team member to discuss the areas in which work performance exceeds, meets, or falls short of expectations. Where performance does not meet acceptable standards, the supervisor will outline and document specific improvements and a timeframe for their implementation.

If the team member's performance continues to fall below acceptable standards, the supervisor, in consultation with the Director of Human Resources, may decide to reassign the team member to a more suitable internal position or initiate termination proceedings. When selecting the most appropriate action, the supervisor will examine the team member's overall capabilities, length of service, and prior performance history.

SBSI does not take lightly the termination of a team member for unacceptable work performance. These decisions will be evaluated by both the management team and Human Resources prior to any action being taken.

Corrective Action

Team Members must conform to SBSI's policies and behavioral standards. Whenever a team member engages in inappropriate behavior or violates SBSI policies or standards of conduct, the supervisor will coordinate with Human Resources to decide the appropriate course of action. Corrective action can range from casual feedback for minor infractions to more formal measures, up to and including termination of employment for serious infractions (e.g., assault, theft, confidentiality or privacy violation, discrimination or harassment, physical violence, or threats of violence).

Discipline for inappropriate behavior is typically administered progressively but will be administered in accordance with the severity of the offense. Depending on the frequency, gravity, or type of the misconduct, certain steps may be skipped or repeated. For instance, in cases of serious or egregious wrongdoing, it may be appropriate to terminate employment immediately.

Team members should immediately report any actual or suspected theft, fraud, embezzlement, or misuse of Company funds or property, as well as suspicious behavior. A team member who is aware of such activity but does not report it may, depending on the severity, receive disciplinary action up to and including termination of employment.

Team members are encouraged to request clarification regarding job responsibilities and performance expectations, when necessary. Team members are encouraged to discuss these matters with their supervisors and if not adequately addressed, to speak with another member of management or Human Resources.

In line with appropriate disciplinary procedures, failure to comply with this and associated policies may result in disciplinary action, up to and including suspension without pay or termination of employment.

ATTENDANCE AND PUNCTUALITY

Team members are expected to promptly report to work at the beginning of their workday and remain at work throughout their scheduled shift, except for meal and break periods. Unexpected absences and tardiness cause problems for fellow team members and the business. If team members are absent, their workload must be performed by others, just as they must assume the workload of others who are absent, which can have a negative effect on the performance of the Company – and on any financial rewards tied to that performance. To limit problems caused by team member absences or tardiness, SBSI has adopted the following policy that applies to absences not previously approved by the Company.

If team members are unable to report for work for any reason, on any day, they are expected to speak to their direct supervisor or as soon as practical before the time the team member is scheduled to begin working for that day. The Company may inquire about the general reason for an absence or tardiness. Unless extenuating circumstances exist, team members must call in each day they are scheduled to work but will not report to work.

Excessive absenteeism or tardiness may result in disciplinary action up to and including termination of employment unless the absence or tardiness is legally protected. The following types of time off will not be considered grounds for disciplinary action under this policy:

• Excused time off, including PTO and other forms of paid time off.

• Sick leave provided under a mandatory sick leave law.

• Approved leaves of absence, including jury duty leave, military leave, leave protected under the Family and Medical Leave Act or similar state laws, and time off or leave provided under the Americans with Disabilities Act or similar state laws.

• Time off due to a work-related injury that is covered by workers' compensation. Each situation of absenteeism or tardiness will be evaluated on a case-by-case basis by the supervisor and Human Resources. Even one unexcused absence or tardiness may justify termination of employment, depending upon the circumstances. However, the Company will not subject team members to disciplinary action or retaliation for an absence or for tardiness that is legally protected. If the team member believes that their absence or lateness to work is legally protected, the team member should notify their supervisor of this fact at the time of the absence or tardiness. Team members will not be required to reveal the nature of any underlying medical condition. If a team member believes he or she have been mistakenly subject to disciplinary action for an absence or for tardiness that the team member believes is legally protected, the team member should promptly discuss the matter with their supervisor or Human Resources.

NO CALL – NO SHOW

Except in extraordinary circumstances or a legally protected reason, if team members fail to report for work without any notification to their supervisor and their absence continues for a period of three (3) days, the Company will consider that the team member has abandoned and voluntarily terminated their employment.

PROMOTION FROM WITHIN

The Company advocates promoting from within whenever possible. Team members are encouraged to apply through Human Resources for job openings. Experience, qualifications, and recommendations from supervisors will be taken into consideration for promotion. The company uses a variety of sources to advertise and recruit for open positions.

TRAINING AND DEVELOPMENT

SBSI is committed to providing proper training and resources to its team members so that they may succeed in the roles. From time to time, the Company will require training for all team members or for certain roles. Team members are expected to comply with all training requirements assigned to them. SBSI also encourages team members to consider what training they feel they may need to succeed and to discuss additional training opportunities with their supervisors

SEPARATION FROM THE COMPANY

Employment with the Company is at-will. Accordingly, team members may resign their employment at any time and for any reason with or without notice, and similarly the Company may terminate a team member’s employment at any time with or without cause and with or without notice.

The Company requests team members provide an advance, written notice of resignation to their immediate supervisor and to Human Resources to allow the Company the opportunity to locate a replacement before the team member leaves. The Company reserves the right to accelerate the resignation date and designate any date between the date of the resignation notice and the team member’s preferred last day of employment as the effective last day of employment. Team members are prohibited from using accrued PTO after they have provided notice of resignation, and no accrued PTO shall extend the date of termination.

A team member will be deemed to have resigned if they:

• Fail to return from an approved leave of absence on the specified return date.

• Fail to report to work without notice for more than 3 consecutive work days.

• When requested by the Company, fail to provide Human Resources with a physician certification supporting a leave of absence due to illness or injury or releasing the team member back to work.

Team members who separate from the Company are expected to:

• Participate in an exit interview with Human Resources.

• Return all Company materials, Confidential Information, technology resources, PHI, keys, badges, access cards, equipment, supplies, laptops, vehicles, cell phones, zip drives, records, disks, rolodexes, electronically stored information and data, and any other Company property. Team members shall not retain any copy or reproduction of any Company property.

• Remove all personal property from the Company.

Team members will receive their final paycheck and information regarding COBRA consistent with applicable law. Depending upon the reason for separation, team members may be eligible to receive unemployment benefits through the worked in state.

ALABAMA TEAM MEMBER HANDBOOK SUPPLEMENT

This Supplement is exclusively for Southeast Building Supply Interests (“SBSI”) team members working in Alabama. It contains information specific to your state. In the event of a conflict between this Supplement and the SBSI Employee Handbook, this Supplement will govern. Please note that leave benefits outlined in this Supplement will run concurrently with any other qualifying leave to which the team member is entitled under Company policy.

JURY DUTY

SBSI recognizes the civic responsibility of jury duty service in the federal and state court systems by permitting time off from work when an employee is summoned to jury duty. Team members are encouraged to serve on jury duty. If a team member is summoned to jury duty, SBSI will continue to pay such team members in accordance with Alabama law. All team members will be paid the difference between his or her usual compensation and the amount the team member received for service as a juror. The team member is responsible for obtaining a statement from the person paying the team member for jury service that shows the daily and total compensation the team member received as a juror.

To qualify for jury duty leave, team members must submit a copy of the summons to his or her supervisor the next day the team member comes to work. In addition, team members must also submit a related proof of service when the period of jury or witness duty is completed. No adverse employment action will be taken against team members due to their service as either a juror or witness in state or federal courts.

VOTING LEAVE

Team members are encouraged to fulfill their civic responsibility by voting in local, state and national elections. Team members are required to provide reasonable notice to his or her supervisor, and evidence of voting may be required. The necessary time off shall not exceed 1 hour and if the hours of work of the team member commence at least 2 hours after the opening of the polls or end at least 1 hour prior to the closing of the polls, then the time off for voting as provided in this section shall not be available. SBSI may specify the hours during which the team member may absent himself or herself as provided in this section.

VOLUNTEER EMERGENCY RESPONDER LEAVE

Team members may be eligible for unpaid time off work to serve as a volunteer of the fire department or emergency medical services. Team members should contact his or her supervisor as soon as he or she is aware that he or she will be late to work, or unable to report to work due to the emergency dispatch. Upon request, team members must provide his or her supervisor with a statement from the appropriate department documenting that the employee was responding to an emergency call.

VICTIMS OF CRIME LEAVE

Team members may take unpaid time off from work to respond to a subpoena or testify or to participate in the reasonable preparation of a criminal proceeding. Team members who take leave under this law may do so without the loss of employment or intimidation, threats, or fear of the loss of employment.

MILITARY LEAVE

Members of the Alabama National Guard, Naval Militia, Alabama State Guard organized in lieu of the National Guard, the National Disaster Medical System, the Civil Air Patrol or the U.S. reserves shall be entitled to a military leave of absence on all days that they are engaged in field or coast defense or other training or service ordered under the National Defense Act or of the federal laws governing the U.S. reserves. Upon return to work, a team member will be reinstated to his or her position with equivalent seniority, benefits, pay and other terms and conditions of employment.

Team members requesting time off must notify their direct supervisor as soon as possible after learning the intended dates upon which such leave will begin and end.

GEORGIA TEAM MEMBER HANDBOOK SUPPLEMENT

This Supplement is exclusively for Southeast Building Supply Interest (“SBSI”) team members working in the state of Georgia. It contains information specific to your state. In the event of a conflict between this Supplement and the SBSI Employee Handbook, this Supplement will govern. Please note that leave benefits outlined in this Supplement will run concurrently with any other qualifying leave to which the team member is entitled under Company policy.

SICK LEAVE

Georgia team members may use up to 5 days of sick time accrued in accordance with SBSI’s sick leave policies for the care of their immediate family member. Under this policy, a “family member” includes the team member’s child, spouse, grandchild, grandparent, or parent or any dependents as shown in the team member’s most recent tax return. For questions regarding leave under this policy, team members should contact Human Resources.

ACTIVE MILITARY LEAVE AND RESERVE DUTY LEAVE

Unpaid military leave of absence and reserve duty leave will be granted in accordance with federal and state law to all non-temporary team members who are absent from work because of: 1) active service in the United States uniformed services, a reserve component of the United States uniformed services, or the Georgia National Guard; 2) participation in any training or assemblage of the Georgia National Guard for up to 6 months leave in any 4-year period; or 3) attendance at a service school conducted by the armed forces of the United States for a period or periods up 6 months leave in any 4-year period. Advance notice of military service is required, unless military necessity prevents such notice or it is otherwise impossible or unreasonable.

SBSI will, unless its circumstances have so changed as to make it impossible or unreasonable to do so, return a nontemporary team member to work in the same or similar position upon return from the performance of military service described in this policy and will treat the non-temporary team member as though the employee were continuously employed for purposes of determining benefits based on length of service if, and only if, the nontemporary team member: 1) provides SBSI with a certification of completion of military service executed by an officer of the applicable force of the armed forces of the United States or Georgia National Guard; 2) remains able to perform and is qualified to perform the duties of the position; and 3) applies for reemployment within 90 days after being relieved from service. Non-temporary team members who are returning from militia training or attendance at a service school conducted by the armed forces of the United States must apply for reinstatement within 10 days after completion of the team member’s attendance at the training or service school.

JURY DUTY LEAVE

Team members will be paid for any day during which the team member is absent from work for the purpose of attending a judicial proceeding in response to a subpoena, summons for jury duty, or other court order or process that requires the attendance of the team member at a judicial proceeding.

Team members must provide a copy of the summons for jury duty, notice to appear, subpoena, or other process to their supervisor as soon as possible so the supervisor may make arrangements to accommodate the team member’s absence. Team members are expected to report for work whenever the court’s schedule permits.

Team members who are absent to participate in judicial proceedings will receive their regular wages, less any compensation received from the court. Team members must provide their supervisor with a copy of any court payment records.

VOTING LEAVE

SBSI encourages team members to fulfill their civic responsibilities by participating in any municipal, county, state, or federal election or political party primary. Any team member whose work schedule does not provide the team member two consecutive hours either between the opening of the polls and the beginning of the team member’s

shift or between the end of the team member’s shift and the close of the polls will be granted up to two unpaid hours off during working time in order to vote, so long as the team member is qualified and registered to vote on the day in which such election is held. Team members who qualify for time off to vote must provide their supervisor reasonable notice. The team member’s supervisor reserves the right to specify the hours during which the employee may be absent to vote. Team members will not be disciplined for taking voting leave in accordance with this policy or for failing to vote.

SOUTH CAROLINA TEAM MEMBER HANDBOOK SUPPLEMENT

This Supplement is exclusively for Southeast Building Supply Interest (“SBSI”) team members working in the state of South Carolina. It contains information specific to your state. In the event of a conflict between this Supplement and the SBSI Employee Handbook, this Supplement will govern. Please note that leave benefits outlined in this Supplement will run concurrently with any other qualifying leave to which the team member is entitled under Company policy.

MILITARY AND RESERVE DUTY LEAVE

In addition to a team member’s rights under USERRA, SBSI will not discriminate or retaliate against a team member who is a member of the South Carolina National Guard, the National Guard of any other state, the South Carolina State Guard or the State Guard of any other state. Team members who are members of the National Guard or the State Guard are eligible for reinstatement upon honorable release from such duty.

Returning team members will be reinstated to a position of same or similar seniority, status, and salary. However, if SBSI’s circumstances have changed in ways that make such reinstatement impossible or unreasonable, such team members will be assigned to an alternative, available position. For more information about leave under this policy, team members should contact Human Resources.

SUBPOENA COMPLIANCE LEAVE

SBSI provides unpaid leave to South Carolina team members who are subpoenaed to attend a court or administrative proceeding. Team members shall provide reasonable notice to the team member’s supervisor after receiving the subpoena. For more information regarding subpoena compliance leave, please contact Human Resources.

PAID TIME OFF

The Company believes it is important for everyone to take time off from work to spend time with friends and family, relax and recharge. We encourage and expect eligible team members to take paid time off (PTO) every year. Nonexempt team members are not permitted or authorized to perform any work during PTO.

Regular Full-Time Team Members

Regular, full-time team members are eligible for PTO at their base pay rate, not including overtime. PTO accrues each pay period from the team member’s first day of employment. Team members are only permitted to utilize accrued PTO hours and are not permitted to “go negative” in their PTO bank without approval from a GM or the CEO. Once approved by a supervisor, PTO may be taken in increments of two (2) hours or more. The Company may require team members to take half of their annual hours by the middle of the calendar year to ensure a proper balance of staffing levels during peak business seasons.

Team members whose employment is terminated will be paid out their accrued but unused PTO at a maximum of 360 hours.

TENNESSEE TEAM MEMBER HANDBOOK SUPPLEMENT

This Supplement is exclusively for Southeast Building Supply Interests (“SBSI”) team members working in Tennessee. It contains information specific to your state. In the event of a conflict between this Supplement and the SBSI Employee Handbook, this Supplement will govern. Please note that leave benefits outlined in this Supplement will run concurrently with any other qualifying leave to which the team member is entitled under Company policy.

PARENTAL LEAVE

Team members who have worked for SBSI for at least 12 consecutive months may be eligible for unpaid parental leave. Qualifying team members may take up to four months off for the adoption of a child, pregnancy, childbirth and nursing an infant in a 12-month period.

To request leave under this policy, you should provide Human Resources with at least three months advance notice of:

• The anticipated date your leave period will begin. For adoption, you qualify for leave beginning on the date you take custody of the child.

• The length of leave.

• Your intention to return to full-time employment after leave ends.

On your return from leave, you will be restored to the same or a similar position without loss of accrued benefits.

Any leave under this policy that also qualifies as leave under the federal Family and Medical Leave Act (FMLA) will be counted against your leave entitlement under both policies. You must comply with the requirements of both policies. However, if you wish to take only 12 work weeks of leave (or the amount remaining at the time) afforded under the FMLA policy, you will only be required to follow the notice requirements of the FMLA policy. If you are on parental leave that also qualifies as FMLA leave, you will receive the rights, privileges, compensation and benefits provided under the FMLA policy. If any portion of your leave does not qualify as FMLA leave, you will receive the same rights, privileges, compensation and benefits as any team member on non-FMLA leave.

MEAL PERIODS

Non-exempt team members are entitled to a thirty-minute unpaid meal or rest period if scheduled for six or more consecutive work hours, unless the nature of their role provides ample opportunity for the team member to rest or take an appropriate break.

ACKNOWLEDGEMENT OF TEAM MEMBER HANDBOOK ACKNOWLEDGMENT OF RECEIPT OF SOUTHEAST BUILDING SUPPLY INTERESTS, LLC

(“SBSI or the “Company”)

TEAM MEMBER HANDBOOK

I acknowledge that I have received, read and understand the SBSI Team Member Handbook (“Handbook”) and any state supplements that apply to me. I understand that the Handbook summarizes SBSI’s employment policies and procedures and describes important information about the Company. I understand that the policies described in this Handbook take effect immediately. This Handbook supersedes all other previously issued, handbooks, memoranda, and communications previously prepared, adopted, or distributed by the Company.

I further understand that policies, procedures, and benefits described in this Handbook may be suspended, revoked, or modified at any time prospectively, in the discretion of the Company, without formal amendment to this Handbook, with the exception of the at-will employment policy. I understand that substantive changes will be communicated to me through official notices and that only the CEO of SBSI has the authority to make a written agreement, statement or representation that is in any way inconsistent with the provisions of the Handbook.

I understand and agree that this Handbook does not confer on me any contractual or other rights. This Handbook does not guarantee me the right to employment or continued employment, or the right to employment on any specific terms or conditions. I understand and agree my employment at SBSI is at-will, which may be terminated at any time, with or without notice by the Company or me.

I acknowledge and agree that it is my responsibility to read and become familiar with the contents of the Handbook. If I have questions regarding the content or interpretation of this Handbook, I will discuss them with my supervisor or Human Resources. I understand that I am required to sign this Handbook Acknowledgement but that my signature is not required for this Handbook to be enforced. If I begin or continue to work for the Company without signing the Handbook Acknowledgement, this Handbook will be effective, and I will be deemed to have acknowledged, agreed to and accepted this Handbook through my knowledge of it and my acceptance of and/or continued employment with the Company.

This acknowledgment supersedes and replaces all prior understandings concerning its subject matter.

Team Member’s Name(print):

Team Member’s Signature:

Date:

ACKNOWLEDGMENT OF RECEIPT AND REVIEW OF SOUTHEAST BUILDING SUPPLY INTERESTS, LLC

(“SBSI or the “Company”)

DRUG-FREE WORKPLACE POLICY

I acknowledge that I have received, read and understand the SBSI Drug-Free Workplace Policy. I understand that SBSI is committed to providing a safe work environment that is free from the effects of alcohol and drug use, and that the Drug-Free Workplace Policy has been adopted for the benefit of everyone with the intent to reduce accidents and injuries and lessen injury claims and property loss.

I further understand that this policy may be suspended, revoked, or modified at any time prospectively, in the discretion of the Company, without formal amendment to this policy. I understand that substantive changes will be communicated to me through official notices and that only the CEO of SBSI has the authority to make a written agreement, statement or representation that is in any way inconsistent with the provisions of this policy.

I acknowledge and agree that it is my responsibility to read and become familiar with the contents of this policy. If I have questions regarding the content or interpretation of this policy, I will discuss them with my supervisor or Human Resources. I understand that I am required to sign this Drug-Free Workplace Policy Acknowledgement but that my signature is not required for this policy to be enforced. If I begin or continue to work for the Company without signing this Acknowledgment, this policy will be effective, and I will be deemed to have acknowledged, agreed to and accepted this policy through my knowledge of it and my acceptance of and/or continued employment with the Company.

This acknowledgment supersedes and replaces all prior understandings concerning its subject matter.

Team Member’s Name(print):

Team Member’s Signature:

Date:

ACKNOWLEDGMENT, RECEIPT AND REVIEW OF SOUTHEAST BUILDING SUPPLY INTERESTS, LLC

(“SBSI or the “Company”)

CODE OF CONDUCT

I acknowledge that I have received, read and understand the SBSI Code of Conduct. I understand that SBSI is committed to providing best-in-class teams member experience, and that, ensure our Company’s continued success, and team member satisfaction, SBSI expects team members to follow basic, common-sense rules of conduct.

I further understand that this policy may be suspended, revoked, or modified at any time prospectively, in the discretion of the Company, without formal amendment to this policy. I understand that substantive changes will be communicated to me through official notices and that only the CEO of SBSI has the authority to make a written agreement, statement or representation that is in any way inconsistent with the provisions of this policy

I further understand that the statement of prohibited conduct does not alter or limit the policy of at-will employment. Either the team member or the Company may terminate the employment relationship at any time for any reason, with or without cause, and with or without notice.

I acknowledge and agree that it is my responsibility to read and become familiar with the contents of this policy. If I have questions regarding the content or interpretation of this policy, I will discuss them with my supervisor or Human Resources. I understand that I am required to sign this Code of Conduct Acknowledgement but that my signature is not required for this policy to be enforced. If I begin or continue to work for the Company without signing this Acknowledgment, this policy will be effective, and I will be deemed to have acknowledged, agreed to and accepted this policy through my knowledge of it and my acceptance of and/or continued employment with the Company.

This acknowledgment supersedes and replaces all prior understandings concerning its subject matter.

Team Member’s Name(print):

Team Member’s Signature:

Date:

ACKNOWLEDGMENT, RECEIPT AND REVIEW OF SOUTHEAST BUILDING SUPPLY INTERESTS, LLC

(“SBSI or the “Company”)

SOUTH CAROLINA TEAM MEMBERS

THE CONTENTS OF THE EMPLOYEE HANDBOOK ARE PRESENTED AS A MATTER OF INFORMATION. WHILE THIS HANDBOOK IS NOT INTENDED TO BE A BOOK OF RULES AND REGULATIONS, IT DOES INCLUDE SOME IMPORTANT GUIDELINES, WHICH YOU SHOULD KNOW. EXCEPT FOR THE AT-WILL EMPLOYMENT PROVISIONS, THE HANDBOOK CAN BE AMENDED AT ANY TIME. THE HANDBOOK, THE PLANS, POLICIES AND PROCEDURES DESCRIBED HEREIN AND THE LANGUAGE USED HEREIN, ARE NOT INTENDED TO CREATE, OR IS IT TO BE CONSTRUED TO CONSTITUTE A CONTRACT BETWEEN THE ORGANIZATION AND ANY OR ALL OF ITS EMPLOYEES. LIKEWISE, NEITHER IS THIS EMPLOYEE HANDBOOK, THE PLANS, POLICIES, AND PROCEDURES DESCRIBED HEREIN, NOR THE LANGUAGE USED HEREIN, INTENDED TO BE OR IS, A GUARANTEE OR PROMISE OF EMPLOYMENT OR CONTINUING EMPLOYMENT.

YOU ARE NOT HIRED FOR ANY DEFINITE OR SPECIFIED PERIOD OF TIME EVEN THOUGH YOUR WAGES ARE PAID REGULARLY. YOU ARE AN AT-WILL EMPLOYEE OF THE ORGANIZATION, AND YOUR EMPLOYMENT CAN BE TERMINATED AT ANY TIME, WITH OR WITHOUT CAUSE AND WITH OR WITHOUT PRIOR NOTICE. ORGANIZATION POLICY REQUIRES ALL EMPLOYEES TO BE HIRED AT-WILL AND THIS POLICY CANNOT BE CHANGED BY ANY ORAL MODIFICATIONS. THERE HAVE BEEN NO IMPLIED OR VERBAL AGREEMENTS OR PROMISES TO YOU THAT YOU WILL BE DISCHARGED ONLY UNDER CERTAIN CIRCUMSTANCES OR AFTER CERTAIN PROCEDURES ARE FOLLOWED. THERE IS NO IMPLIED EMPLOYMENT CONTRACT CREATED BY THIS HANDBOOK OR ANY OTHER ORGANIZATION DOCUMENT OR WRITTEN OR VERBAL STATEMENT OR POLICY.

For team members in South Carolina, by signing below you acknowledge that you understand the above disclaimer required by law and that this Handbook supersedes all previously issued handbooks, policies, and practices.

Team Member Signature:

Team Member’s Printed Name:

Date: