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exempt as defined above. Part-time employees are eligible for only those benefits required by law, provided the employee meets the minimum requirements set forth by law and in the benefit plan(s). EXEMPT EMPLOYEES Exempt employees are classified as such if their job duties are exempt from the overtime provisions of the Federal and State Wage and Hour laws. Exempt employees are not eligible for overtime pay, as their salaries are calculated on a per pay basis. NON-EXEMPT EMPLOYEES Non-Exempt Employees receive overtime pay in accordance with our overtime policy. Their salaries are calculated on an hourly basis. TEMPORARY An Employee is considered temporary if he/she does not have regularly scheduled hours, and works on an as-needed, on-call basis or is employed to assist on a time specified project that does not exceed 6 months. Temporary employees are classified as non-exempt and do not receive any additional compensation or benefits provided by the company. INTERN An employee is considered an Intern if he/she is a full- or part-time student working at LHD in a position with a pre-determined end date. Interns are considered non-exempt and typically work one (1) or more semesters. Interns are eligible for overtime pay in accordance with our overtime policy. Interns do not receive any additional compensation or benefits provided by the company. Assessment Period Every new employee goes through an initial period of adjustment in order to learn about the Company and his/her job. During this time, the employee will have an opportunity to determine if he/she is suited to LHD and his/her new position. Additionally, the initial employment period gives LHD and the Employee’s supervisor a reasonable period of time to evaluate his/her performance. It is our goal that all employees meet or exceed optimal performance to be successful within our organization. All new employees will participate in a 90-day Assessment Period that begins on the first day of employment. At the end of the Assessment Period, the Employee and their supervisor may discuss the Employee’s performance. Where improvement is needed, LHD will provide guidance and the necessary tools to reach optimal performance. In the event that optimal performance is not met, or the Employee is not progressing satisfactorily, action may be taken, up to and including termination. Provided the Employee’s job performance is satisfactory, the Employee will continue employment at LHD as an at-will Employee. BACK TO TABLE OF CONTENTS | 3

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