EMPLOYEE BENEFITS PACKAGE BOOKLET

EMPLOYEE BENEFITS PACKAGE BOOKLET Effective April 1, 2011 Employee Name: Property Name:

MEB EMPLOYEE BENEFITS PACKAGE BOOKLET March 2009 Contact Human Resources (hr@mebmgmt.com) or 520.618.3825 for eligibility requirements and information regarding MEB s Benefits Package. You can also visit MEB s company website for enrollment forms and Plan Summaries. STATE/FEDERAL MANDATED BENEFITS Eligible employees at MEB are provided a wide range of benefits. A number of programs (such as Social Security, Workers Compensation, State Disability, and Unemployment Insurance) cover all employees in the manner prescribed by law. WORKERS COMPENSATION INSURANCE MEB provides comprehensive Workers Compensation Insurance at no cost to employees. This program covers any injury or illness sustained in the course of employment that requires medical, surgical, or hospital treatment. Subject to applicable legal requirements, Workers Compensation Insurance provides benefits after a short waiting period or, if the employee is hospitalized, immediately. Employees who sustain a work-related injury or illness MUST inform their Manager IMMEDIATELY. No matter how minor an on-the-job injury may appear, it is important that it be reported immediately. This will enable an eligible employee to qualify for coverage as quickly as possible. Note: if the injured employee or attending medical provider does not report the accident forthwith, as required by law, the insurance carrier may deny the injured worker s claim and no compensation or benefits will be paid for the injury resulting from the accident. Neither MEB nor the insurance carrier will be liable for the payment of Workers Compensation Insurance benefits for injuries that occur during an employee s voluntary participation in any offduty recreational, social, or athletic activity sponsored by MEB. ELIGIBILITY FOR GROUP INSURANCE Regular, full-time employees working thirty-five (35) hours or more per workweek are eligible for group benefits offered by MEB the first of the month following 60 consecutive days of fulltime employment. Takeover Employees 1, the first of the month following hire date. Benefits are subject to change. HEALTH INSURANCE MEB s health insurance plan provides regular full-time employees and their dependents access to medical, dental, and vision care insurance benefits. Eligible employees may participate in the health insurance plan subject to all terms and conditions of the agreement between MEB and the insurance carrier. Enrollment forms are available on the MEB website. 1 For the purpose of this policy, Takeover Employees refers to employees who are on staff at an apartment community when MEB assumes management of the property. For Takeover Employees with benefits through the prior management company, it is MEB s policy to automatically transfer those individuals into current MEB benefit programs. It does not apply to new hires effective after the change in management. 1

A change in employment classification that would result in loss of eligibility to participate in the health insurance plan may qualify an employee for benefits continuation under the Consolidated Omnibus Budget Reconciliation Act (COBRA). MEB contracts with a third party administrator to facilitate this program for eligible employees. Refer to the Benefits Continuation (COBRA) policy for more information. Details of the health insurance plan are described in the Summary Plan Description (SPD). A SPD and information on cost of coverage will be provided in advance of enrollment to eligible employees. BENEFITS CONTINUATION (COBRA) The federal Consolidated Omnibus Budget Reconciliation Act (COBRA) gives employees and their qualified beneficiaries the opportunity to continue health insurance coverage under MEB s health plan when a qualifying event would normally result in the loss of eligibility. Some common qualifying events are resignation, termination of employment, death of an employee, reduction in an employee s hours, an employee s leave of absence, an employee s divorce or legal separation, or a dependent child no longer meeting eligibility requirements. Under COBRA, the employee or beneficiary pays the full cost of coverage at MEB s group rates plus an administration fee. MEB provides each eligible employee with a written notice describing rights granted under COBRA when the employee becomes eligible for coverage under MEB s health insurance plan. The notice contains important information about the employee s rights and obligations. MEB contracts with a third party administrator to facilitate this program for eligible employees. LIFE INSURANCE Life insurance offers you and your family important financial protection. MEB provides a basic life insurance plan for regular full-time employees. Accidental Death and Dismemberment (AD&D) insurance provides protection in cases of serious injury or death resulting from an accident. AD&D insurance coverage is provided as part of the basic life insurance plan. Eligible employees may participate in the life insurance plan subject to all terms and conditions of the agreement between MEB and the insurance carrier. Details of the basic life insurance plan, including benefit amounts, are described in the Summary Plan Description provided to eligible employees. LONG-TERM DISABILITY (LTD) MEB will provide long-term disability benefits to all regular full-time employees. Details of the long-term disability plan are described in the Summary Plan Description available on our website. 401(k) SAVINGS PLAN Benefit booklet MEB has established a 401(k) savings plan to provide employees the potential for future financial security for retirement. 2

To be eligible to join the 401(k) savings plan, you must complete one year of service and be 21 years of age or older. You may join the plan only during open enrollment periods. Eligible employees may participate in the 401(k) plan subject to all terms and conditions of the plan. Effective January 1, 2006, MEB will match participants contributions by 50%, up to a maximum employee contribution of 6%. Example: If an employee has a 10% contribution to the 401(k) plan, MEB will match 3% (10% x 50% = 5%; 3% match) Example: If an employee has a 4% contribution to the 401(k) plan, MEB will match 2% (4% x 50% = 2%; <3% match) The 401(k) savings plan allows you to elect how much salary you want to contribute and direct the investment of your plan account so you can tailor your own retirement package to meet your individual needs. Because your contribution to a 401(k) plan is automatically deducted from your pay before federal and state tax withholdings are calculated, you save tax dollars now by having your current taxable amount reduced. While the amounts deducted generally will be taxed when they are finally distributed, favorable tax rules typically apply to 401(k) distributions. Vesting You are always 100% vested in the contributions You choose to defer. You cannot forfeit these contributions. You are vested in MEB s employer contributions based on years of vesting service with your employer as shown below: Less than 3 3 or more Years of Service Years of Service 0% Vesting 100% Vesting FLEXIBLE SPENDING ACCOUNT (FSA) MEB provides a Flexible Spending Account (FSA) program that allows employees to have pretax dollars deducted from their salaries to pay for eligible out-of-pocket expenses. The pre-tax contributions made to the FSA can be used to pay for predictable non-reimbursed health care expenses and dependent care expenses during the plan year. Through the FSA program, you can reduce your taxable income without reducing your real income, so that you can keep more of the money you earn. Employees in the following employment classifications are eligible to participate in the Flexible Spending Account program: Regular full-time employees Part time employees Participation in the Health Care and/or Dependent Care FSA is optional and determined on an annual basis for the plan year (January 1 st through December 31 st ). You must enroll for the first plan year. Once enrolled in the plan, contributions automatically renew unless the employee directs otherwise. Open enrollment for the FSA is held on an annual basis. You determine how 3

much to contribute to the account, up to a specified maximum, based on anticipated expenses during the plan year. You may contribute up to a maximum of $2,400 dollars each year for your Health Care FSA. The maximum contribution for your Dependent Care FSA is $5,000 dollars per year. Contributions are directed to the account through salary reduction on a pre-tax basis. This tax-free money is then available to you for reimbursement of out-of-pocket expenses. Monies that have not been utilized prior to December 31 st are forfeited. Details of the Flexible Spending Account program are described in the Summary Plan Description (SPD). OPEN ENROLLMENT Open enrollment is conducted once a year. Employees are asked to verify coverage and to make any changes to medical, dental, vision, and life insurance elections. Employees are responsible for verifying their elections through the employee self service portal, HR Online. Employees should also verify their coverage through the vendor websites. Employees must make Human Resources aware of any discrepancies immediately. Employees are responsible for updating their dependent addresses if there is a change in status. Employees electing to renew coverage, drop coverage, or make any changes to group health benefits selections will be required to do so by the designated deadline each year. MEB will be responsible for sending out open enrollment notices in a timely fashion to ensure employees have had ample time to review and make their choice. Unless you have experienced a qualifying event any changes to your elected plans must wait until MEB s next open enrollment period. Employees who do not re-enroll during this period will not be eligible to participate until the next open enrollment. OPTIONAL EMPLOYEE-PAID BENEFITS) The following are some of the optional employee-paid programs available to eligible employees, subject to terms and conditions of each program. MEB benefit programs may be changed at any time at the sole discretion of MEB unless otherwise mandated by law. Cancer Indemnity Plan Personal Accident Indemnity Plan Personal Hospital Indemnity Disability Income Protector PAID TIME OFF (PTO) ELIGIBILITY AND LEAVE Full-time staff members are eligible for vacation and sick days under the Paid Time Off (PTO) policy. Full-time staff members are designated by status, per guidelines under the Fair Labor Standards Act. Through a single amount of time off, this program provides a high degree of flexibility for the staff member. Except in the case of illness or emergency, PTO must be scheduled in advance and is subject to approval by your Supervisor. PTO may be taken in one-hour increments for vacation, personal time, illness or time off to care for dependents. Holidays, jury duty and bereavement leave are provided under separate policies and do not count as PTO. Once employees become eligible, (designated above as full-time classification) their PTO accrues according to the schedule. Accrual begins on date of eligibility (full-time status) and 4

continues each pay period thereafter. EARNED PTO IS AVAILABLE FOR USE AFTER THE FIRST PAYCHECK FOLLOWING THE ANNIVERSARY OF SIX (6) FULL MONTHS OF CONTINUOUS EMPLOYMENT. If an employee leaves MEB either voluntarily or involuntarily prior to the completion of six (6) months continuous employment, the employee forfeits their earned PTO. Upon termination of employment, employees will be paid for unused PTO time that has been earned through the last workday only if the employee provided MEB with the required resignation notice. Resignation is a voluntary act initiated by the employee to terminate employment with MEB. MEB requires at least a ten working day, excluding holidays, written resignation notice from all employees. PTO may not be granted once notice has been given. PTO GUIDELINES 1. PTO Scheduling a. To the extent possible, PTO is to be requested and approved by your Supervisor in advance. b. Supervisors are responsible for scheduling PTO in a manner that balances the operational and business delivery needs of MEB with the time off preferences of the employee. MEB reserves the right to 1) deny PTO requests that may have an adverse effect on its operations, or 2) cancel previously approved PTO requests if unexpected circumstances arise that require the employee s attendance at work. c. In the event that illness or emergency prevents the employee from requesting PTO in advance, the employee is to notify the Supervisor or the Supervisor s designated alternate no later than the start of the workday (not voice-mail) and state the desire for unscheduled time off. 2. PTO Tracking MEB will maintain a PTO account for each eligible employee and track the beginning balance, current balance, accumulations, and usage on a calendar year basis. 3. PTO Reporting a. Non-exempt: Employees are required to report PTO hours taken during each pay period by recording the PTO hours on their time sheets. PTO hours taken will be charged against the employee s PTO account at the conclusion of the pay period in which it was reported. b. Exempt: Exempt employees are required to report PTO hours taken during each pay period by recording the PTO hours on their time sheets. Exempt employees need not record regular hours worked. c. A Leave Request Form is available on the MEB webpage for use in facilitating the leave accountability process. 4. Excused Leave Without Pay (LWOP) in Lieu of PTO Employees carrying PTO balances may not opt to take excused absences without pay in lieu of PTO for purposes of saving accumulated PTO hours. Employees with insufficient PTO balances to cover requested periods of time off may be granted excused time off without pay (non-exempt employees) at the discretion of the Supervisor. Contact Payroll Manager (payroll@mebmgmt.com) concerning LWOP for exempt employees. 5. PTO Usage During Workers Compensation Leave Employees may use PTO during the first week (5 working days) of absence from work due to a work-related injury or illness. PTO may also be used to supplement the workers compensation weekly benefit. 5

PTO ACCUMULATION SCHEDULES 1. Vice Presidents and District Managers Full-time Vice Presidents and District Managers will accumulate PTO for 26 pay periods per year based on a flat rate regardless of the years of service: Flat Rate All Years of Service PTO Days Per Year 2080 Hours Budgeted Annually (Annual Hourly Accrual) Max Allowed Per Year PTO Hourly Accumulation Rates Vice Presidents 29 days 232 232 2080 hrs = 0.1115 District Managers 24 days 192 192 2080 hrs = 0.0923 a. The accumulation rate for Vice Presidents is automatically based on following formula: 80 hrs X 0.1115 hourly accumulation rate = 8.92 hours bi-weekly b. The accumulation rate for District Managers is automatically based on following formula: 80 hrs X 0.0923 hourly accumulation rate = 7.384 hours bi-weekly 2. Exempt Employees a. Full-time exempt employees will accumulate PTO for 26 pay periods per year based on the following schedule: Total (Combined) Years of Service PTO Days Per Year 2080 Hours Budgeted Annually (Annual Hourly Accrual) Max Allowed Per Year PTO Hourly Accumulation Rates Exempt 0-3 yrs 18 days 144 hours 144 2080 hrs = 0.0692 4-6 yrs 20 days 160 hours 160 2080 hrs = 0.0769 7-14 yrs 22 days 176 hours 176 2080 hrs = 0.0846 15 yrs or more 24 days 192 hours 192 2080 hrs = 0.0923 b. Exempt employees are paid on a weekly salary basis every two (2) weeks. The exempt accumulation rates are automatically based on following formula: 80 hrs X 0.0692 hourly accumulation rate = 5.536 hours bi-weekly 80 hrs X 0.0769 hourly accumulation rate = 6.152 hours bi-weekly 80 hrs X 0.0846 hourly accumulation rate = 6.768 hours bi-weekly 80 hrs X 0.0923 hourly accumulation rate = 7.384 hours bi-weekly 3. Non-Exempt Employees (per Fair Labor Standards Act) a. Full-time non-exempt employees will accumulate PTO for 26 pay periods per year based on the following schedule: Total PTO Accrual Hours PTO 6

(Combined) Years of Service Accrual Days Per Year Per Year Based on 2080 Hours Max Allowed Per Year Hourly Accrual Non-Exempt 0-3 yrs 17 days 136 hours 0.0654 4-6 yrs 18 days 144 hours 0.0692 7-14 yrs 20 days 160 hours 0.0769 15 yrs or more 22 days 176 hours 0.0846 b. Non-exempt employees accumulate PTO each pay period based on the actual hours worked or in a paid status (jury duty leave, bereavement leave, etc.) in accordance with the accumulation schedule and criteria outlined above. c. Non-exempt employees are paid on an hourly basis every two (2) weeks. The non-exempt accumulation rates are automatically based on following formula: 80 hrs X 0. 0654 hourly accumulation rate = 5.232 hours bi-weekly 80 hrs X 0. 0692 hourly accumulation rate = 5.536 hours bi-weekly 80 hrs X 0. 0769 hourly accumulation rate = 6.152 hours bi-weekly 80 hrs X 0. 0846 hourly accumulation rate = 6.768 hours bi-weekly d. Hours paid in excess of 40 per workweek are not subject to PTO accumulation. e. Employees will accumulate PTO for hours paid when absent from work in connection with: PTO, holidays, paid leave of absence, paid administrative leave, bereavement leave, and civic leave. Employees will not earn PTO when absent from work in connection with excused or unexcused absences without pay (LWOP) including unpaid leaves of absence or workers compensation leaves. (See workers compensation leaves for use with PTO) f. Annual accumulation rates are to increase as of the first day of the pay period following achievement of the applicable service milestone. PTO Accumulation Schedules & Account Balance Limits MEB will maintain a PTO account for each eligible employee and track the beginning balance, current balance, accumulations, and usage on a calendar year basis. Limits are imposed on the amount of PTO that can be maintained as a balance. When the maximum account limits are reached, an employee will not receive additional PTO hours until his/her balance has been reduced below the maximum. 1. Vice Presidents and District Managers PTO account limits for Vice Presidents and District Managers are reflected below: 2080 Hours Budgeted Annually Account Limit Max Allowed Per Year Vice Presidents 232 232 District Managers 192 192 2. Exempt Employees PTO account limits for full-time exempt employees are reflected below: 2080 Hours 7

Exempt Budgeted Annually Account Limit Employees Max Allowed Per Year 0-3 yrs 144 hours 144 hours 4-6 yrs 160 hours 160 hours 7-14 yrs 176 hours 176 hours 15 yrs or more 192 hours 192 hours 3. Non-Exempt Employees (per Fair Labor Standards Act) PTO account limits for full-time non-exempt employees are reflected below: Non-Exempt 2080 Hours Budgeted Annually Account Limit Employees Max Allowed Per Year 0-3 yrs 136 hours 136 hours 4-6 yrs 144 hours 144 hours 7-14 yrs 160hours 160hours 15 yrs or more 176 hours 176 hours PTO UPON SEPARATION FROM EMPLOYMENT Upon separation from MEB employment, an employee who has given two (2)-week written notice and successfully completed six months or more of continuous service shall be paid for any accumulated but unused PTO hours. Employees may not use PTO in lieu of notice of resignation. The last day worked will be considered the date of separation from MEB for all employees. Should you decide to leave your employment with us, we ask that you provide your supervisor with at least two weeks' advance written notice. Your thoughtfulness is appreciated and will be noted favorably should you ever wish to reapply for employment with the company. Employees who are rehired following a break in service in excess of 30 days other than an approved leave of absence must serve a new initial introductory period, whether or not such a period was previously completed. Such employees are considered new employees from the effective date of their reemployment for all purposes, including the measuring of benefits. MEB does not provide a "letter of reference" to former employees. Generally we will confirm upon request our employees' dates of employment, salary history and job title. You should notify the company if your address changes during the calendar year in which termination occurs so that your tax information will be sent to the proper address. PAID TIME OFF (PTO) LIMITATIONS In most cases, employees who separate from MEB employment will be entitled to payment for earned but unused PTO days, including carryover, up to a maximum of the annual entitlement for that year. If at termination the PTO days taken by the employee exceed the number of PTO days earned, including carryover PTO days, payment for the unearned days will be deducted from the employee s final paycheck. Under no circumstances will employees be able to borrow PTO based on future expected accrual. 8

No payment for unused PTO days is made to employees who terminate for violation of MEB rules/regulations, to employees who resign without required notice, or to staff who resign or terminate employment during the initial six (6) month period from date of hire. HOLIDAYS MEB will grant holiday time off to all eligible full-time employees on the holidays listed below: New Year s Day January 1 Memorial Day Last Monday in May Independence Day July 4 Labor Day First Monday in September Thanksgiving Fourth Thursday in November Day after Thanksgiving Fourth Friday in November Christmas Eve (½ day) December 24 Christmas December 25 New Year s Eve (½ day) December 31 MEB will grant paid holiday time off to all employees working with MEB immediately upon employment. Holiday pay will be calculated based on the employee s straight-time pay rate (as of the date of the holiday). Employees cannot request cash in lieu of the holiday and may not accumulate the holiday from year to year. To be eligible for the holiday pay, employees must work the last scheduled day immediately before and the first scheduled day immediately after the holiday, unless time-off was approved by the Supervisor prior to the holiday. A recognized holiday that falls on a Saturday will be observed on the preceding Friday. A recognized holiday that falls on a Sunday will be observed on the following Monday. If a recognized holiday falls during an eligible employee s paid absence (e.g., PTO), holiday pay will be provided instead of the paid time off benefit that would otherwise have applied. If eligible non-exempt employees work on a recognized holiday, they will receive straight time pay for the hours worked on the holiday IN ADDITION TO their holiday pay (equivalent to one day's straight time wages). Paid time off for holidays will not be counted as hours worked for the purposes of determining overtime. Employees Required to Work on Holidays Employees who are required to work on a day on which a holiday is observed will receive both holiday compensation and one hour of pay at the current salary rate, for each hour worked. Alternately, employees may elect to take a paid day off during the same workweek in lieu of the additional holiday, at the discretion of the Supervisor. NOTE: The employee must have worked the day prior to the holiday and the scheduled workday following the holiday, or be in an approved paid status (e.g., PTO leave, jury duty, etc.) to receive 9

holiday pay. Employees who have reduced paid hours (less than eight) the day prior to and the day after a holiday, will receive holiday hours based on the average paid hours of those days. BEREAVEMENT LEAVE Employees who wish to take time off due to the death of an immediate family member should notify their Manager immediately. All regular full-time employees are eligible. For the death of an immediate member, up to five (5) days of paid bereavement leave will be provided. For the death of an extended family member, as defined below, up to three (3) days of paid bereavement leave will be provided. For purposes of this policy, an immediate family member includes: your spouse, significant other, parent, step-parent, child, step-child, sibling, step-sibling, grandparent, grandchild, your spouse s or significant other s parent, child or sibling, or another person living in the household. An extended family member is defined as your parent s or step-parent s sibling (your aunt, uncle or step-aunt, step-uncle) or that sibling s child or step-child (your cousin or step-cousin), your spouse s or significant other s parent s or step-parent s sibling (spouse s/significant other s aunt, uncle or step-aunt, step-uncle) or the sibling s child (spouse s/significant other s cousin or step-cousin). Bereavement pay is calculated based on the base pay rate at the time of absence and will not include any special forms of compensation, such as incentives, commissions, bonuses, or shift differentials. JURY DUTY MEB encourages employees to fulfill their civic responsibilities by serving jury duty when required. Exempt, regular full-time employees will be compensated for jury duty service in accordance with the Fair Labor Standards Act (FLSA). Jury duty pay will be calculated on the employee s base pay rates times the number of hours the employee would otherwise have worked on the day of absence. If employees are required to serve jury duty beyond the period of paid jury duty leave, they may use any available PTO or may request an unpaid jury duty leave of absence (LWOP). Employees must show the jury duty summons to their Manager as soon as possible so that the Manager can make arrangements to accommodate their absence. Employees are expected to report for work whenever the court schedule permits. Either MEB or the employee may request an excuse from jury duty if, in MEB s judgment, the employee s absence would create serious operational difficulties. MEB will continue to provide health insurance benefits until the end of the month in which the unpaid jury duty leave begins. At that time, employees will become responsible for the full costs of these benefits if they wish coverage to continue. When the employee returns from jury duty, MEB, according to the applicable plans, will again provide benefits. Benefit accruals such as PTO or holiday benefits will be suspended during unpaid jury duty leave and will resume upon return to active employment. 10

WITNESS DUTY MEB encourages employees to appear in court for witness duty when subpoenaed to do so. If employees have been subpoenaed or otherwise requested to testify as witnesses by MEB, they will receive paid time off for the entire period of witness duty. Employees will be granted unpaid time off to appear in court as a witness when requested by a party other than MEB. Employees are free to use any available PTO to receive compensation for the period of this absence. The subpoena should be shown to the employee s Manager immediately after it is received so that operating requirements can be adjusted, where necessary, to accommodate the employee s absence. The employee is expected to report for work whenever the court schedule permits. VICTIM S LEAVE Intent MEB recognizes state and local laws that authorize employees who are victims of crimes to leave work to exercise the right to be present at legal proceedings related to the crime. The information the employee provides to their Manager is confidential and will be kept in a confidential file. Policy and Procedures 1. Covered Employer MEB is an employer covered by the Arizona Victim Leave Law 12/01/01 (ARS 13-4439; 8-420). 2. Eligible Employee Employees are eligible for leave and certain job protections if they are a victim of a crime. a. Victim means a person against whom a criminal offense or delinquent act has been committed, or if the victim was killed or incapacitated, the person s immediate family or other lawful representative. b. Immediate family is defined as your spouse, significant other, parent, stepparent, child, step-child, sibling, step-sibling, grandparent, grandchild, your spouse s or significant other s parent, child or sibling, or another person living in the household, or lawful guardian. c. Lawful representative is someone who is designated by the victim or appointed by the court to act in the best interests of the victim. 3. Protections Crime victims are entitled to attend all court proceedings involving the perpetrator of their crime and may take time off work to do so. This would include many preliminary and post-trial hearings. Employees who take this leave will not lose seniority or priority while absent from work. 4. Paid/Unpaid Time Off Work Employees must use any available PTO benefits in order to be paid for this leave. If an employee has no accumulated PTO leave, the leave will be unpaid. 5. Notice Employees must provide their Manager with the following before being allowed time off: a. A copy of the notice the employee received from the law enforcement or prosecutor regarding their status as a crime victim and their rights, and b. A copy of the notice of any scheduled proceedings, if applicable, and c. Employees must provide notice to their Manager as far in advance as is possible. 11

EMPLOYEE REFERRAL PROGRAMS MEB recognizes the importance of attracting and retaining valued employees. The company also understands that current employees can serve as a valuable referral system. Employees who refer a qualified individual to MEB, who is eventually hired and remains with the company for six months (180) days, will receive a bonus for the referral. Seasonal and temporary employees will not be eligible for a referral fee. Referral bonuses are paid through payroll. Employees will receive a monetary bonus for the referral of either full-time or part-time employees (provided they have met the provision mentioned above). The referral bonus will be paid on the first day of the seventh month from new hire date. Check the MEB website to find the most current monetary awards for full-time and part-time employee referrals. PERSONAL LEAVE WITHOUT PAY (LWOP) MEB provides leave of absence without pay to eligible employees who wish to take time off from work duties to fulfill personal obligations. Employees in the following employment classifications are eligible to request personal leave as described in this policy: Regular full-time employees Eligible employees may request personal leave only after having completed ninety (90) calendar days of service. As soon as eligible employees become aware of the need for personal leave of absence, they should request a leave from their Manager. Personal leave may be granted for a period of up to thirty (30) calendar days every year. With the Manager s approval, an employee may take any available PTO as part of the approved period of leave. Requests for personal leave will be evaluated based on a number of factors including anticipated workload requirements and staffing considerations during the proposed period of absence. Subject to the terms, conditions, and limitations of the applicable plans, MEB will provide health insurance benefits until the end of the month in which the approved personal leave begins. At that time, employees will become responsible for the full costs of these benefits if they wish coverage to continue. When the employee returns from personal leave, MEB will, according to the applicable plans, again provide benefits. Benefit accruals, such as PTO or holiday benefits, will be suspended during the leave and will resume upon return to active employment. When a personal leave ends, every reasonable effort will be made to return the employee to the same position, if it is available, or to a similar available position for which the employee is qualified. However, MEB cannot guarantee reinstatement in all cases. If an employee fails to report to work promptly at the expiration of the approved leave period, MEB will assume the employee has resigned. PREGNANCY RELATED ABSENCES MEB will not discriminate against any employee who requests an excused absence for medical disabilities associated with pregnancy. Such leave requests will be evaluated according to the medical leave policy provisions outlined in this handbook and all applicable federal and state laws. 12

Requests for time off associated with pregnancy and/or childbirth, such as bonding and child care not related to medical disabilities for those conditions, will be considered in the same manner as other requests for unpaid family or personal leave. EMPLOYEE ASSISTANCE PROGRAM (EAP) MEB provides an Employee Assistance Program (EAP) contracted through a third-party provider. This benefit is available to all full time MEB employees and dependent family members. Please contact our EAP provider for services. The EAP provides a full range of counseling and referral services for individual, family and marital concerns and job-related issues; child and domestic abuse; and chemical dependency assessment. Counseling staff consists of state-licensed psychologists and masters and doctoral level therapists. For long-term therapy or specialized treatment, referrals are made to community professionals and treatment sources. The Employee Assistance Program (EAP) provides confidential counseling and referral services to employees for assistance with such problems as drug and/or alcohol abuse or addiction. It is the employee s responsibility to seek assistance from the EAP prior to reaching a point where his or her judgment, performance, or behavior has led to imminent disciplinary action. Participation in the EAP after the disciplinary process has begun may not preclude disciplinary action, up to and including termination of employment. Management may suggest or require EAP counseling as part of any performance evaluation. Refer to the actual plan documents and summary plan descriptions if you have specific questions regarding the benefit plans. Those documents are controlling. The most recent documents are available on the company website. 13