SEASONAL TRAIN EMPLOYEE HANDBOOK Iowa Pacific Holdings

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1 SEASONAL TRAIN EMPLOYEE HANDBOOK Iowa Pacific Holdings Employee Policies and Procedures 2014 Legal disclaimer to users of this form Employee Handbook: The materials presented herein are for general reference only. Federal, state or local laws or individual circumstances may require the addition of policies, amendment of individual policies and/or the entire Handbook to meet specific situations. Some government forms may be presented in altered size, font or format and may not, therefore, meet federal or state requirements. These materials are intended to be used only as guides and should not be used, adopted or modified without the advice of competent legal counsel. These materials are presented, therefore, with the understanding that we are not engaged in rendering legal, accounting, or other professional service. If legal advice or other expert assistance is required, the services of a competent professional should be sought.

2 INTRODUCTION Welcome to Iowa Pacific Holdings (IPH)! On behalf of your colleagues Iowa Pacific Holdings and wish you every success here. As an IPH, you are an important part of our entire organization. We believe that each employee contributes directly to IPH's growth and success, and we hope you will take pride in being a member of our team. This handbook was developed to outline our expectations of our employees and to outline the policies, programs, and benefits available to eligible employees. Employees should familiarize themselves with the contents of the employee handbook as soon as possible, for it will answer many questions about employment with IPH. We hope that your experience here will be challenging, enjoyable, and rewarding. Again, welcome! Sincerely, Daniel K. Marko Vice-President of Human Resources/General Counsel

3 RECEIPT OF SEASONAL & TEMPORARY EMPLOYEE HANDBOOK The Employee Handbook is a compilation of personnel policies, practices and procedures currently in effect at IPH, an equal opportunity employer. This Handbook is designed to introduce employees to the organization, familiarize you with Company policies as they pertain to you as an employee, provide general guidelines on work rules, disciplinary procedures and other issues related to your employment, and to help answer many of the questions that may arise in connection with your employment. This Handbook and any other provisions contained herein do not constitute a guarantee of employment or an employment contract, express or implied. You understand that your employment is at-will and that your employment may be terminated for any reason, with or without cause, and with or without notice. This Handbook is intended solely to describe the present policies and working conditions at IPH. This Handbook does not claim to include every conceivable situation; it is merely meant as a guideline, and unless laws prescribe otherwise, common sense shall prevail. Of course, federal, state, and/or local laws will take precedence over IPH policies, where applicable. Personnel Policies are applied at the discretion of IPH. IPH reserves the right to change, withdraw, apply, or amend any of our policies or benefits, including those covered in this Handbook, at any time. IPH may notify you of such changes of this Handbook, but may, in its discretion make such changes at any time, with or without notice and without a written revision of this Handbook. By signing below, you acknowledge that you have received a copy of IPH s Employee Handbook, and understand that it is your responsibility to read and comply with the policies contained therein and any revisions made to it in the future. Furthermore, you acknowledge that you are employed at-will and that this Handbook is neither a contract of employment nor a legal document. By signing below, you also acknowledge the following: 1. I understand and agree that I am required to take a drug test and complete a background check as a condition of my employment with IPH. I further acknowledge and understand that I cannot begin to work for IPH until I receive an from the Human Resources Department authorizing me to work for IPH. As such, any service rendered by me prior to receiving authority to begin employment from the Human Resources Department will be performed by me on a strictly volunteer basis and I will not be compensated for my time.

4 2. I agree that I will not come to work until I have completed all of the documents necessary to establish my eligibility to work in the United States, including my I-9 form, and where appropriate, state documentation required for minors. If I do begin working for IPH before I have completed these documents, it is on a strictly volunteer basis and I will not be compensated for my time. 3. I agree that I am SOLELY responsible for submitting my time and hours worked through the ADP time and attendance payroll system made available to me by IPH. I understand that it is my responsibility to clock in and clock out of work every day. Further, in the event that I fail to clock in or out I will be required to contact my manager or supervisor immediately in order to correct this situation. I acknowledge and understand that IPH will not accept timesheets or any other form or paper submission of time worked. 4. I have been advised, and agree that if there is any issue or problem with my payroll or paychecks, I am required to contact Human Resources at hr@iowapacific.com to address that issue. Signature Date Please print your full name Address Phone Number Please sign and date one copy of this notice and return it to Human Resources. Retain a second copy for your reference.

5 Section 1 -- GENERAL EMPLOYMENT Seasonal and Temporary Employment Your employment with IPH is classified as being temporary or seasonal with IPH. A temporary employee is an individual who is hired either part-time or full-time for a specific, limited period of time. When that time limit is completed, your employment at IPH will be terminated. Temporary employees DO NOT EARN benefits, including but not limited to vacation, PTO, health insurance, leave and other similar benefits that exist or may be created for permanent employees. Temporary and Seasonal employees will not be paid for time not a work. At the end of the temporary or seasonal employment period, you will not have earned any vacation or PTO time. Equal Employment Opportunity (EEO) It is IPH s policy to provide equal employment opportunity to all individuals. We are committed to a diverse workforce. We value all employees talents and support an environment that is inclusive and respectful. We are strongly committed to this policy, and believe in the concept and spirit of the law. We are committed to assuring that: All recruiting, hiring, training, promotion, compensation, and other employment related programs are provided fairly to all persons on an equal opportunity basis; Employment decisions are based on the principles of equal opportunity. All personnel actions such as compensation, benefits, transfers, training, and participation in social and recreational programs are administered without regard to any characteristic protected by state, federal or local law; and Employees and applicants will not be subjected to harassment, intimidation, threats, retaliation, coercion or discrimination because they have exercised any right protected by law. We believe in and practice equal opportunity. All employees are responsible for supporting the concept of equal opportunity and diversity and assisting our Company in meeting its objectives. Employment At-Will IPH and its employees share a working relationship defined as employment-at-will. Simply stated, employment-at-will means that in the absence of a specific written agreement, you are free to resign at any time and IPH reserves the right to terminate your employment for any reason (which does not violate any applicable law) with or without prior notice.

6 If you wish to resign, you are requested to notify your manager of your anticipated departure date with as much notice as possible; which is appreciated by IPH and your coworkers. This notice should be in the form of a written statement. Employee Communications One of a supervisor s primary responsibilities is to help their employees do the best job they can. This means answering any questions employees may have about working for IPH. The supervisor should be the first person an employee goes to when they have questions about their work or IPH s policies, programs or benefits. Supervisors will be able to answer any questions, and/or tell employees how to get the information they need. Supervisors encourage their employees to communicate with them on a regular basis. Bulletin boards at all IPH locations are located in visible places. Federal, state and local regulations require that certain information on equipment, wages and working conditions be prominently displayed on these bulletin boards. In addition, IPH may publish operating information in the form of general orders, special instructions and notices, which will be posted on the bulletin board. Employees working for IPH are responsible for reviewing the operating information contained on the bulletin boards and complying with any instructions posted. Employees with questions about the operating information displayed on the bulletin board should speak with their supervisor(s). Business Ethics and Conduct The business and reputation of IPH is built upon the principles of fair dealing and ethical conduct of our employees. Employees are expected to behave in a pleasant, business-like manner at all times. IPH expects every employee to adhere to the highest standards of job performance and of personal conduct, including individual involvement with company personnel and outside business contacts. Disregarding or failing to comply with this policy could lead to disciplinary action, up to and including termination of employment. Immigration Law Compliance IPH complies with the most current federal law in regards to Immigration Reform and Control by employing only United States citizens and non-citizens who are authorized to work in the United States. All employees are asked on their first day of employment to provide original documents verifying the right to work in the United States and to sign a verification form required by federal law (DHS/USCIS Form I-9). If an individual cannot verify his/her right to work within three days of hire, IPH will terminate his/her employment.

7 Time Off Temporary Employees are not eligible to earn or accrue any time paid time off. Any time missed from work will be unpaid regardless of the reason or circumstance. Attendance Every employee is expected to attend work regularly and report to work on time. If you are unable to report to work on time for any reason, telephone your supervisor as far in advance as possible. If you do not call in an absence in advance, it will be considered unexcused. Unsatisfactory attendance, including reporting late or leaving early, may be cause for disciplinary action, up to and including termination. Voluntary Termination An employee who resigns his/her employment or fails to report to work for any two or more consecutive scheduled workdays without notice to, and approval by his/her supervisor (i.e., no call-no show ), voluntarily terminates their employment with IPH. All Company-owned property (e.g., keys, uniforms, name tag, etc.) must be returned immediately upon termination of employment. Smoking Policy The Company maintains a smoke-free environment. No smoking or other use of tobacco products (including, but not limited to, pipes, cigars, snuff, or chewing tobacco) is permitted in any part of the building or in engine cabs, locomotives, vehicles owned, leased, or rented by the Company, etc. Employees may smoke outside in designated areas during breaks. No additional breaks beyond those allowed under the Company's break policy may be taken for the purpose of using tobacco products. Being permitted to use tobacco products during breaks is a privilege. If that privilege is abused, it may be withdrawn altogether. General Computer Usage Policy IPH requires a General Computer Usage Policy to accomplish its business objectives in a secure and timely manner. Instituting such a policy demonstrates the commitment IPH has to safeguard corporate information assets. That commitment must extend from every individual involved in business operations. All data on information systems at IPH is classified as Company proprietary information. Any attempt to circumvent IPH s security procedures is strictly prohibited.

8 Unauthorized use, destruction, modification, and/or distribution of IPH s information or information systems is strictly prohibited. All IPH s information systems will be subject to monitoring and auditing at all times. Users acknowledge that they have no expectation of privacy with regard to their activity on IPH s information systems. Individual passwords will be kept strictly confidential. In no situation should a username and password be given to another individual. Misuse, as defined in this policy, will be handled directly with the offender and could include disciplinary action up to and including discharge. Internet Usage Internet usage is provided to IPH employees to conduct work-related business. Incidental and occasional personal use is permitted. This privilege should not be abused and must not affect a user s performance of employment related activities. Non-business Internet activity will be restricted to non-business hours. Usage accounts are provided to IPH employees to conduct work-related business. While this resource is to be used primarily for business, the Company realizes that employees may occasionally use this privilege for personal matters, and therefore permits limited personal during non-business hours. All on the IPH information systems, including personal , is the property of IPH. As such, all can and may be periodically monitored. Outgoing and incoming of an offensive, pornographic, or otherwise inappropriate nature is prohibited. Violations of this may result in disciplinary action, up to and including termination of employment. Violations Violations of any guidelines listed herein may result in disciplinary action, up to and including immediate termination. If necessary, Iowa Pacific Holdings will advise appropriate legal officials of any illegal violations. Section 2 -- EMPLOYEE RECORDS Employment Applications IPH relies upon the accuracy of information contained in the employment application, as well as the accuracy of other data presented throughout the hiring process and employment. Any misrepresentations, falsifications, or material omissions in any of this information or data may result in the exclusion of the individual from further consideration for employment or, if the person has been hired, termination of employment.

9 Personnel Records Personnel records are kept highly confidential, and are not available to anyone outside of the Company unless you have authorized the release, or release is to an authorized governmental agency, or is required by law. To obtain access to your records, contact Human Resources. Data Changes Personnel records are maintained on a current basis. Employees are responsible to notify their supervisor or Human Resources immediately of any change of name, address, phone number, uniform expenses, job status, marital status, dependents and etc. Employee information changes must be submitted on the Employee Change Form. Section 3 -- PAY POLICIES & PRACTICES Work Schedules The standard workweek consists of seven days running from Monday at 12:01 a.m. through Sunday midnight (12:00 a.m.). A work day is eight (8) hours excluding lunch. The supervisor in charge will establish start, lunch and quit times for the workday. Straight Time Overtime Straight time is the first (40) hours per work week. All IPH employees are eligible to receive overtime pay for hours worked in excess of (40) hours in a work week. Overtime must always be approved by the direct supervisor before it is performed. Pay Schedule and Distribution of Pay Seasonal employees will be paid bi-weekly on Friday s. If a payday falls on a holiday, the payday will be the business day before the normal paydate. Paydays are always at least one week behind the actual work week. Pay periods are Sunday to Saturday, so an employee will be paid for all time worked from that time period on the following Friday. For example, if a pay period begins on Sunday, August 1 and ends on Saturday, August 14; the employee would be paid for all time worked during that period on Friday, August 20.

10 Most Employees have their paychecks administered via direct deposit or by a pay card. This is the lowest cost and most efficient method of receiving a paycheck. If you elect a live check, it will be mailed to you, via United States Postal Service, on payday from the corporate office in Chicago, Illinois. Often times it can take up to one week or longer for employees electing to receive a live check to receive their check. In addition, if the check is lost in the mail, for any reason, no check can be re-issued until a stop payment order has been processed with our financial institution and verification received that it is in effect. This can take an additional 1-2 weeks. The fee for a replacement check is $25.00 NO EXCEPTIONS. Wage Overpayment / Underpayment Policy IPH takes all reasonable steps to ensure that employees receive the correct amount of pay in each paycheck and that employees are paid promptly on the scheduled paydays. In the event that there is an error in the amount of pay, the employee should promptly bring the discrepancy to the attention of Human Resources so that corrections can be made as quickly as possible. If the employee has been underpaid, the IPH will pay the employee the difference as soon as possible. If a wage overpayment occurs, the overpayment will be regarded as an advance of future wages payable and will be deducted in whole or in part from the next available paycheck(s) until the overpaid amount has been fully repaid. Garnishment of Employee Wages IPH is required by law to honor garnishments against an employee's wages. An employee will be notified when a garnishment order is received. He/she will be notified of the total amount of the garnishment, and the starting date of the salary deduction. The amount of deduction is determined by court decree, and that amount will be deducted from the employee's salary on a regular basis until the total debt is satisfied. Employees will be charged $25 to set up any garnishment of wages. Employees will also be charged $2.50 for each payment made pursuant to a garnishment order. Section 4 -- EMPLOYEE CONDUCT No Call/No Show Policy Uniforms If an employee fails to report to work without notice to, or approval by his/her supervisor (i.e., no call-no show ), they may be subject to discipline up to and including termination of their employment.

11 As a seasonal employee you are required to meet high standard for personal appearance and hygiene. In many cases, employees may be required to wear a uniform or costume. Any employee who reports to work inappropriately dressed will be requested to change into suitable clothing/costume immediately and may be sent home from the job for the day without pay. The Three Bees for all Seasonal Employees 1. Be Positive The most important aspect of your job is working with members of the public to help build a positive customer experience. As such, it is important that employee welcome visitors, be warm and gracious, and help create a festive atmosphere. Working with the public may occasionally be difficult at times, however, it is important to keep an upbeat and optimistic attitude no matter what else might be happening. If a visitor has a complaint, be sure to pass it along to a manager or supervisor and do everything possible to address their concern. 2. Be Safe - Working on trains can be dangerous. Always make sure that you are aware of your surroundings and follow all safety rules and procedures. You are responsible not only for your own safety, but also to ensure the safety of guests and visitors. 3. Be Smart We are all part of a team, working together to make our trains a success. You can do your part by being on time, doing what is asked of you, and making every effort to do your job and play your role the best way you can. But it does not end there. If you see something that you believe is wrong, say something to your manager or supervisor. If you see something that needs to be done, help out. Being a smart employee is the best way to make sure that things go well. Section 5 PROHIBITED ACTIVITY Violence-Free Workplace It is IPH s policy to provide a workplace that is safe and free from all threatening and intimidating conduct. Therefore, IPH will not tolerate violence or threats of violence of any form in the workplace, at work-related functions, or outside of work if it affects the workplace. It will be a violation of this policy for any individual to engage in any conduct, verbal or physical, which intimidates, endangers, or creates the perception of intent to harm persons or property. Carrying weapons on IPH property or equipment is strictly prohibited. IPH will promptly and thoroughly investigate any reported occurrences or threats of violence. Violations of this policy will result in disciplinary action, up to and including termination of employees.

12 Harassment Policy IPH s policy is to provide a work environment that is free from harassment. Therefore, IPH will not tolerate harassment based on age, race, gender, color, religion, national origin, disability, marital status, covered veteran status, sexual orientation, status with respect to public assistance, and other characteristics protected under state, federal, or local law. Such conduct is prohibited in any form at the workplace, at work-related functions, or outside of work if it affects the workplace. This policy applies to all IPH employees, clients, customers, guests, vendors, and persons doing business with IPH. Sexual Harassment Examples of conduct prohibited by this policy include, but are not limited to: Unwelcome sexual flirtation, advances, or propositions; Explicit or degrading verbal comments about another individual or his/her appearance; The display of sexually suggestive pictures or objects in any workplace location including transmission or display via computer; Any sexually offensive or abusive physical conduct; The taking of or the refusal to take any personnel action based on an employee s submission to or rejection of sexual overtures; and Displaying cartoons or telling jokes which relate to an individual s age, race, gender, color, religion, national origin, disability, or sexual orientation. Reporting Harassment Retaliation If any employee believes that they are being harassed, they should immediately report the matter to a member of the management team, or contact the human resources department. Any reported incident of harassment will be investigated immediately and thoroughly. Complaints and actions taken will be handled as confidentially as possible, given IPH s obligation to investigate and act upon reports of such harassment. Appropriate actions will be taken by IPH to stop and remedy any such conduct. Retaliation of any kind or discriminating against an employee who reports a suspected incident of harassment or who cooperates in an investigation is prohibited. An employee who violates this policy or retaliates against an employee in any way will be subject to disciplinary action up to and including termination. Disciplinary Action

13 Disciplinary actions may entail verbal, written, final warnings, suspension without pay, or termination; depending on the severity of the incident. All of these actions may not be followed in some instances. IPH reserves the right to exercise discretion in discipline. Prior warning is not a requirement for termination. Drug & Alcohol Policy Persons who have been extended job offers may be required to take and pass a preemployment drug & alcohol test as a condition of employment. Refusal or failure of any random or post-accident testing will result in immediate termination. Illegal Drugs Alcohol Stealing IPH employees are prohibited from using or being under the influence of illegal drugs. You may not use, manufacture, distribute, purchase, transfer or possess an illegal drug while in IPH facilities or while operating a motor vehicle. This policy does not prohibit the proper use of medication under the direction of a physician; however, misuse of such medications is prohibited. Employees are prohibited from using or being under the influence of alcohol while performing company business or while operating a motor vehicle in the course of business or for any job-related purpose, or while on company premises or a worksite. Any employee who improperly or unlawfully removes company equipment from the premises will be terminated. If an employee has any question about what items can be taken from the premises, they should speak with their supervisor before taking any such items. Section 6 -- INJURIES Guest Injuries If a guest gets injured while on the premises, your first priority is to ensure their safety. If a guest has been hurt and requires medical attention, notify a manager or a supervisor, or if necessary, contact 911 directly. After the guest has received medical attention, please make sure that you fill out a guest injury form to document what occurred.

14 Employee Injuries Employees must report all injuries, no matter how small or insignificant to their supervisor immediately. For the protection and safety of all employees, there are absolutely no exceptions to this rule. Any employee who fails to report an injury within 24 hours of the occurrence may be subject to discipline, up to and including termination. Employees are personally responsible for the timely reporting of an injury. Under no circumstances is an employee to attempt to work through an injury, or elect not to report an injury because they do not feel immediate pain. Similarly, an employee shall not fail to report an injury because of the requirements of specific task or assignment.

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