Employment Practices & Policies Pre-Employment Screening LHD recognizes the importance of maintaining a safe workplace with employees who are honest, trustworthy, qualified, reliable, non-violent, and do not present a risk of serious harm to their co-workers or others. For purposes of furthering 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 that is reasonably available to the Company. The Company may review an applicant’s or an employee’s criminal background and/or driving records where relevant. In the event that a background check is conducted, the Company will comply with the federal Fair Credit Reporting Act and applicable state laws, including providing the job applicant or employee with any required notices and forms. Consistent with these practices, job applicants or employees may be asked to sign certain authorization and release forms. Consistent with legal requirements, the Company reserves the right to make signing the requested release forms a condition of commencing or continuing employment. Re-Hires Re-hire eligibility is determined at the time the employee leaves the company and must be approved by a member of the Executive Team. Any employee eligible for re-hire who was employed for at least two (2) years of service prior to their resignation and returns to employment within six (6) months of resignation, will have their original date of hire reinstated. New hire benefit waiting periods, however, will apply for reinstatement of benefits. Re-hires will be eligible for immediate re-entry into the 401(k) plan in accordance with plan. Normal pre-employment procedures will apply, including application, new hire paperwork and background checks. Employment Categories Based on the conditions of employment, Employees at LHD fall into one of the following categories: FULL-TIME An Employee is considered Full-Time if he/she works a minimum of 30 hours per week, regardless of the days or times worked, and whose position has no pre-determined end date. Full-time employees are eligible for benefits once they meet the eligibility requirements for each particular benefit. PART-TIME An Employee is considered Part-Time if he/she works a regular schedule of less than 30 hours per week and whose position has no pre-determined end date. Part-time employees can be classified as exempt or non- BACK TO TABLE OF CONTENTS | 2