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WESTERN STEEL, INC.

3360 Davey Allison Blvd PO Box 3610 Hueytown, AL 35023

Western Pipe Service Division Western Holding Division Western Plastics Division Western Development Division Western Threaders Division Western Iron Works Division Western Testing Division

************************************* EMPLOYEE HANDBOOK *************************************

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205-744-2230 (Office)

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Table of Contents
Page # ===== 04 04 05 06 06 07 07 07 08 09 09 09 10 11 11 11 12 12 13 14 14 14 15 16 16 17 17 18 18 18 18 19 20 21 21 21 22 22

Section ====== 1.0 1.1 1.2 2.0 2.1 2.2 2.3 2.4 2.5 2.6 3.0 3.1 3.2 3.3 3.4 3.5 3.6

3.7 4.0 4.1 4.2 4.3 4.4 4.5 5.0 5.1 5.2 5.3

5.4 5.5 5.6 6.0 6.1

Policy Title =============================================== Introduction Introductory Statement Employee Acknowledgment Form Employment Nature of Employment Equal Employment Opportunity Immigration Law Compliance Conflicts of Interest Outside Employment Non-Disclosure Employment Status and Records Employment Categories Seniority Employment Reference Checks Personnel Data Changes Probationary Period Employment Applications 3.6.1 Pre-Employment Background Checks 3.6.2 Background Check Release Authorization Form Performance Evaluation Employment Benefit Programs Employee Benefits Vacations Benefits 4.2.1 Vacations Benefits Eligibility Table Paid Personal Days Bereavement Holiday Timekeeping/Payroll Timekeeping Paydays Direct Deposit 5.3.1 Benefits of Direct Deposit 5.3.2 Authorization Agreement for Direct Deposit Employment Termination Administrative Pay Corrections Pay Deductions and Setoffs Layoff Layoff and Recall

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Table of Contents

Section ====== 7.0 7.1 7.2 7.3 7.4 7.5 7.6 8.0 8.1 8.2

8.3

8.4 8.5 8.6 8.7 8.8 8.9

8.10

Policy Title Page # =============================================== ===== Work Conditions and Hours 22 Safety 22 Work Schedules 23 Rest and Meal Periods 23 Overtime 23 Use of Equipment and Vehicles 24 Emergency Closings 24 Employee Conduct and Disciplinary Actions 24 Employee Conduct and Work Rules 24 Cellular telephone and Texting 25 8.2.1 Personal Cellular Telephones 25 8.2.2 Personal use of Company Provided Cellular Telephones 26 8.2.3 Safety Issues for Cellular Telephones 26 Social Media and Blogging 26 8.3.1 Respect and Privacy Rights 26 8.3.2 Legal Liability 27 Information Systems Security Policy 27 Internet and E-mail Usage 27 Attendance and Punctuality 28 Personal Appearance 28 Resignation 29 Substance Abuse Testing 29 8.9.1 Pre-Employment 29 8.9.2 For Employees 29 8.9.3 Reasonable Suspicion 29 8.9.4 Post-Accident 30 8.9.5 DOT Testing 30 8.9.6 Testing 30 8.9.7 Positive Test 30 Sexual Harassment 31 8.10.1 Definition of Sexual Harassment 31 8.10.2 Examples of Prohibited Conduct 31 8.10.3 Individuals covered under this policy 31 8.10.4 Reporting Sexual Harassment 32 8.10.5 Disciplinary Measures 32 8.10.6 Retaliation Prohibited 32 8.10.7 Confidentiality 33

A line on the left represents the current revision.

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Employee Handbook Revision History

Issue Date Revision 0 Revision 1 Revision 2 Revision 3 Revision 4 Revision 5

09/01/1990 05/01/1995 06/15/1997 07/10/2003 04/01/2006 12/03/2012

1.0 Introduction William B. Cashion founded Western Iron Works in August 1954; Western Steel, Inc. in September, 1966; Western Pipe Service in January, 1980; and then purchased Western Threaders division in October of 1994. 1.1 Introductory Statement This handbook is designed to acquaint you with the organization and provide you with information about working conditions, employee benefits, and some of the policies affecting your employment. You should read, understand, and comply with all provisions of the handbook. It describes many of your responsibilities as an employee and outlines the programs developed by the employer to benefit employees. One of our objectives is to provide a work environment that is conducive to both personal and professional growth. No employee handbook can anticipate every circumstance or question about policy. As the organization continues to grow, the need may arise to change policies described in the handbook. The employer, therefore, reserves the right to revise, supplement, or rescind any policies or portion of the handbook from time to time as it deems appropriate, in its sole and absolute discretion. Employees will, of course, be notified of such changes as they occur.

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Western Steel, Inc. (Sample Copy) 1.2 Employee Acknowledgement Form EMPLOYEE ACKNOWLEDGE FORM The Employee handbook describes important information about this organization, and I understand that I should consult the Department Manager regarding any questions not answered in this handbook. Since the information, policies, and benefits described here are necessarily subject to change, I acknowledge that revisions to the handbook may occur. All such changes will be communicated through official notices, and I understand that revised information may supersede, modify, or eliminate existing policies. Only the president of the organization has the ability to adopt any revisions to the policies in the handbook. I have entered into my employment relationship with this organization voluntarily and acknowledge that there is no specified length of employment. Accordingly, either I or the organization can terminate the relationship at will, with or without cause, at any time. Furthermore, I acknowledge that the Western Steel, Inc. handbook is neither a contract of employment nor a legal document. I have received the handbook, and I understand that it is my responsibility to read and comply with the policies contained in the handbook and any revision made to it.

________________________________________ Date

________________________________________ Employees Name (Typed or Printed)

________________________________________ Employees Signature

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2.0 Employment 2.1 Nature of Employment Employment with this organization is voluntarily entered into, and the employee is free to resign at will, at any time, with or without cause. Similarly, the employer may terminate the employment relationship at will at any time, with or without cause. Policies set forth in the handbook are not intended to create a contract, nor are they to be construed to constitute contractual obligations of any kind or a contract of employment between the employer and any of its employees. The provisions of the handbook have been developed at the discretion of management and may be amended or cancelled at any time, at the organizations sole discretion. These provisions supersede all existing policies and practices and may not be amended or added to without the express written approval of the chief executive officer of this organization. The company shall have the exclusive right to manage the company and direct the work force as it in its sole discretion may deem appropriate. All inherent and common law management functions and prerogatives are retained and vested exclusively in the Company. By way of example but not of limitation, the Company specifically reserves the exclusive right in accordance with its sole judgment to warn, reprimand and for cause to suspend, discharge or otherwise discipline employees; hire, promote, demote, transfer temporarily or permanently, layoff and recall employees to work; determine the starting and quitting times and the number of hours and shifts to be worked; maintain the efficiency of employees; create, expand, reduce, alter, combine, transfer, assign or cease all or any part of any job(s), department(s), operations(s), or service(s); control and regulate the use of vehicles, machinery, equipment, tools and other property of the Company; determine the number, location, and operation of plants, divisions and departments thereof, the products to be manufactured, the schedules of production, the assignment of work, and the size and composition of the work force; make and change rules and policies; introduce new or improved research, development, production, maintenance, service and distribution methods, materials, machinery, tools and equipment; determine and change methods, processes and means of assembling, servicing and repairing products and equipment; control all design and engineering functions and the purchase and use of raw material; determine from time to time which part or components, finished to semi-manufactured, it may purchase or otherwise obtain elsewhere; to use sub-contractors for either production or maintenance work; and otherwise generally manage the plant and direct the work force.
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The above listing or specific rights is not intended to be nor shall it be interpreted to be a restriction upon or to constitute a waiver of any of the rights of management not listed and not specifically surrendered herein. The failure of the Company to exercise any right hereby reserved to it, or the exercising by it of any function and prerogative in a particular way, shall not be deemed a waiver of its right to exercise such function. 2.2 Equal Employment Opportunity This organization is an equal employment opportunity employer and will not discriminate against any employee or applicant for employment in a manner that violates the law. 2.3 Immigration Law Compliance This organization is committed to employing only United States citizens and aliens who are authorized to work in the United States and complies with the Immigration Reform and Control Act of 1986. As a condition of employment, each new employee must properly complete, sign, and date the first section of the Immigration and Naturalization Service Form I-9. Before commencing work, newly rehired employees must also complete the form if they have not previously filed an I-9 with this organization, if the previous I-9 is more than three years old, or if their previous I-9 is no longer valid. Federal law requires all employers to verify the identity and employment eligibility of all persons hired to work in the United States. If the government cannot confirm that you are authorized to work, Western Steel, Inc. is required to provide you written instructions and an opportunity to contact SSA and/or DHS before taking adverse action against you, including terminating employment. 2.4 Conflicts of Interest Employees have an obligation to conduct business within guidelines that prohibit actual or potential conflicts of interest. This policy establishes only the framework within which the employer wishes the business to operate. The purpose of these guidelines is to provide general direction so that employees can seek further clarification on issues related to the subject of acceptable standards of operation. An actual or potential conflict of interest occurs when an employee is in a position to influence a decision that may result in a personal gain for the employee or for a relative as a result of this organizations business dealings. For the purposes of this policy, a relative is any person who is related by blood or marriage, or whose relationship with the employee is similar to that of persons who are related by blood or marriage.

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Western Steel, Inc. No presumption of guilt is created by the mere existence of a relationship with outside firms. However, if an employee has any influence on transactions involving purchases, contracts, or leases, it is imperative that he or she disclose to an officer of the organization as soon as possible the existence of any actual or potential conflict of interest so that safeguards can be established to protect all parties. Personal gain may result not only in cases where an employee or relative has a significant ownership in a firm with which this organization does business but also when an employee or relative receives any kickback, bribe, substantial gift, or special consideration as a result of any transaction or business dealings involving the organization. The materials, products, designs, plans, ideas, and data of this organization are the property of the employer and should never be given to an outside firm or individual except through normal channels and with appropriate authorization. Any improper transfer of material or disclosure of information, even though it is not apparent that an employee has personally gained by such action, constitutes unacceptable conduct. Any employee who participates in such a practice will be subject to disciplinary action, up to and including possible discharge. 2.5 Outside Employment An employee may hold a job with another organization as long as he or she satisfactorily performs his or her job responsibilities with this organization. Employees should consider the impact that outside employment may have on their health and physical endurance. All employees will be judged by the same performance standards and will be subject to the employers scheduling demands, regardless of any existing outside work requirements. If the employer determines that an employees outside work interferes with performance or the ability to meet the requirements of this organization as they are modified from time to time, the employee may be asked to terminate the outside employment if he or she wishes to remain with this organization. Outside employment will present a conflict of interest if it has an actual or potential adverse impact on this organization. All employees have fifteen (15) days to report any outside work (type of work, employer, etc.) in writing to management. Within three (3) working days management will determine if a conflict of interest exists and notify the employee of such. The employee will then have fifteen (15) days to cease such work. Any future outside employment must be approved by management in writing before an employee may accept that employment.
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2.6 Non-Disclosure The protection of confidential business information and trade secrets is vital to the interests and the success of this organization. Such confidential information includes but is not limited to the following examples: Compensation date Customer lists Financial information Marketing strategies Pending projects and proposals

Any employee who discloses trade secrets or confidential business information will be subject to disciplinary action, up to and including termination of employment and legal action, even if he or she does not actually benefit from the disclosed information. 3.0 Employment Status and Records 3.1 Employment Categories It is the intent of the employer to clarify the definitions of employment classifications so that employees understand their employment status and benefit eligibility. These classifications do not guarantee employment for any specified period of time. Accordingly, the right to terminate the employment relationship at will, at any time, is retained by both the employee and the employer. Each employee is designated as either NONEXEMPT or EXEMPT from federal and state wage and hour laws. NONEXEMPT employees are entitled to overtime pay under the specific provision of federal and state laws. EXEMPT employees are excluded from specific provision of federal and state wage and hour laws. In addition to the above categories, each employee will belong to one other employment category: REGULAR FULL-TIME employees are those who are not in a temporary or probationary status and who are regularly scheduled to work the organizations full-time schedule. Generally, they are eligible for the employers benefit package, subject to the terms, conditions, and limitations of each benefit program. PART-TIME employees are those who are not assigned to a temporary or probationary status and who are scheduled to work less than thirty two (32) hours per week. While they do receive all legally-mandated benefits

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Western Steel, Inc. (such as workers compensation and Social Security benefits), they are ineligible for the employers other benefit programs. PROBATIONARY employees are those whose performance is being evaluated to determine whether further employment in a specific position or with the organization is appropriate. Employees who satisfactorily complete the probationary period will be notified of their new employment classification. TEMPORARY employees are those who are hired as interim replacements, to temporarily supplement the work force, or to assist in the completion of a specific project. Employment assignments in the category are of a limited duration. Employment beyond any initially stated period does not in any way imply a change in employment status. Temporary employees retain that status unless and until notified of a change. While temporary employees receive all legally-mandated benefits (such as workers compensation insurance and Social Security), they are ineligible for all of the employers other benefit programs. CASUAL employees are those who have established an employment relationship with the organization but who are assigned to work on an intermittent and/or unpredictable basis. While they receive all legallymandated benefits (such as workers compensation insurance and Social Security), they are ineligible for all of the employers other benefit programs.

3.2 Seniority Seniority is based upon continuous service. Continuous service shall mean continuous employment by the company beginning with the date on which the employee began to work after last being hired. Both continuous service and seniority will terminate upon the happening of any of the following events: The employee quits, retires, and/or is discharged for cause. There is a permanent shutdown of the plant. The employee is laid off in excess of six (6) months. The employee, after lay-off, fails to report for work within five (5) working days after receipt of his recall. The employee is off from work in excess of six (6) months due to personal illness and/or injury, either work or non-work related. Employees may be assigned to which ever shift they are needed.

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3.3 Employment Reference Checks To ensure that individuals who join the organization are well-qualified and have a strong potential to be productive and successful, it is the policy of the employer to check the employment references of all applicants. We will respond to all reference check inquiries from other employers. Responses to such inquiries will confirm only dates of employment, wage rates, and position(s) held. 3.4 Personnel Data Changes It is the responsibility of each employee to promptly notify the employer of any changes in personnel data. Personal mailing addresses, telephone numbers, number and names of dependents, individuals to be contacted in the event of emergency, educational accomplishments, and other such status reports should be accurate and current at all times. 3.5 Probationary Period An employee should use the initial period after being hired or rehired, promoted, demoted, or transferred within the organization to determine whether the new position meets his or her expectations. The employer uses this period to evaluate employee capabilities, attitude, and work habits. Either the employee or the employer may end the employment relationship at will, at any time, during or after the probationary period, with or without cause or advance notice. All new and rehired employees work on a probationary basis for the first ninety (90) calendar days after their date of hire. Employees who are promoted, demoted, or transferred within the organization must complete a probationary period of the same length with every reassignment to a new position. Any significant absence will automatically extend the probationary period by the length of the absence. If the employer determines that the designated probationary period does not allow sufficient time to thoroughly evaluate the employee, the employer may extend the probationary period for a specified period. In the case of promotions, demotions, or transfers within the organization, an employee who, in the sole judgment of management, is not successful in his or her new position can be removed from that job at any time during the probationary period. The employee will be allowed to return to his or her former job, if it is available, or to any other comparable available job for which the employee is qualified. Probationary employees will assume regular status upon satisfactory completion of the probationary period.

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3.6 Employment Applications The employer 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 employers exclusion of the individual from further consideration for employment or, if the person has been hired, termination of employment. 3.6.1 Pre-employment Background Checks When you apply for employment, background investigations will be conducted on all candidates. The company must obtain written consent from the applicant prior to ordering the reports from a third party provider. Background checks may include the following: Workers Comp. Sex Offender MVR (driving record) Criminal History (state or county) Professional License Credit Link Personal References SSN Link Education PEV (work history required) Drug Screen

All background checks are conducted in compliance with the Federal Fair Credit Reporting Act. Applicants may request a copy of the investigative consumer report upon its completion. All applicants are entitled to know if employment is denied because of information obtained by a consumerreporting agency. A criminal conviction will not automatically disqualify an applicant from employment. Consideration will be given to the nature and circumstances of the offense. A copy of the Background Check Release Authorization form can be found on the next page.

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Western Steel, Inc. (Sample Copy) 3.6.2 Background Check Release Authorization

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3.7 Performance Evaluation Supervisors and employees are strongly encouraged to discuss job performance and goals on an informal, day-to-day basis. Formal performance evaluations are conducted at the end of an employees initial period in any new position. This period, known as the probationary period, allows the supervisor and the employee to discuss the job responsibilities, standards, and performance requirements of the new position. Additional formal performance reviews are conducted to provide both correct weaknesses, encourage and recognize strengths, and discuss positive, purposeful approaches for meeting goals. The performance of all employees is evaluated according to an on-going 12month cycle, beginning generally at the fiscal year-end. Merit-based pay adjustments may be awarded by this organization in an effort to recognize truly superior employee performance. The decision to award such an adjustment is dependent upon numerous factors, including the information documented by this formal performance review process. 4.0 Employment Benefit Programs 4.1 Employee Benefits Eligible employees in this organization are provided a wide range of benefits. A number of the programs (such as Social Security, workers compensation, state disability, family and medical leave and unemployment insurance) cover all the employees in the manner prescribed by law, as posted in your workplace. Benefits eligibility is dependent upon a variety of factors, including employee classification, and your supervisor can identify the programs for which you are eligible. Details of many of these programs can be found elsewhere in the employee handbook. The following benefit programs are available to eligible employees: Credit Union Vacation Benefits Holidays Paid Personal Days Bereavement Leave Jury Duty Leave Life Insurance Major Medical Insurance Medical Insurance Profit Sharing
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Some benefit programs require contributions from the employee, but most are fully paid by the employer. Except for employee benefits required by law, probationary employees will not be eligible for benefits until the probation period has been successfully completed 4.2 Vacation Benefits The following employee classifications are eligible for vacation benefits according to the guidelines set forth in this policy: Full-time employees Part-time employees

Employees will be entitled to take vacation time off in the year following its accrual. A benefit year is the twelve-month period following assignment to an eligible employment classification. Vacation pay will be calculated based on the employees straight-time pay rate (in effect when vacation benefits are used) times the number of hours the employee would otherwise have worked on the day(s) of absence. Employees who have satisfied all eligibility requirements may submit vacation requests to their supervisors. Requests will be evaluated based upon various factors, including anticipated operating requirements and staffing considerations during the proposed period of absence. No vacation time will be considered at any time unless requested in writing at least one week prior to time desired to be off. An employee wanting to take only one days vacation must notify the supervisor two (2) days in advance. An employee must take at least one full shift (8 hours) minimum at a time. An employee must sign a Vacation Request form acknowledging vacation time. Employees are strongly encouraged to take earned vacation during the benefit year following its accrual. In the event that an employee has not used all vacation benefits by the end of the benefit year, he or she will receive pay in lieu of vacation time. Vacation may not be accumulated but must be taken in the year of eligibility, nor may vacations in one eligible year be taken consecutively with vacation in another eligible year. An employee who is discharged or leaves the company for any reason prior to actually taking his vacation shall not be entitled to any vacation benefit, except for an employee on a lay-off status. An employee who is laid off will be paid for any pro-rated earned vacation due at the time.

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The company may at its option, shut down any or all departments for vacation purposes, thereby requiring all employees affected by such shutdown to take their vacations at such time. In the event of a vacation shutdown, the company is under no obligation to furnish work for employees whose earned vacation is less than the duration of the shutdown. The company will attempt to allow employees their choice of vacation times (giving full consideration to continuous service with the company) consistent with the orderly operation of the plant. It is specifically understood, however, that the company has the sole and exclusive right to determine and change vacation periods and to determine the number and identities of employees who will be off at any one time. Employees earn vacation benefits over the course of a benefit year, the twelvemonth period following the anniversary of assignment to an eligible employment classification. Vacation benefits are accrued in one year but are not available until the next year. The Eligibility Table below defines when vacation benefits become available to employees. Vacation benefits will be awarded to eligible employees according to the following schedules: 4.2.1 VACATION BENEFITS ELIGIBILITY TABLE Length Of Service 0 months through 12 months After 12 months through 36 months 3 years through 5 years 6 years through 19 years 20 years through subsequent Vacation Available on Yearly Basis 0 days 5 days 10 days 15 days 20 days

In the event of a lay-off, earned vacation will be pro-rated. 4.3 Paid Personal Days Employees Birthday - to be used during week of employees birthday. Floating Day - to be used at any time after ninety (90) days employment with a two day notice to his/her supervisor.

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4.4 Bereavement After probationary period, employees will be paid for three days off for death in his/her immediate family (parents, grandparents, children, grandchildren, brothers, sisters). 4.5 Holiday The employer will grant holiday time off to all employees on the holidays listed below: New Years Day (January 1) Independence Day (July 4) Labor Day (first Monday in September) Thanksgiving (Fourth Thursday in November) Christmas (December 25)

According to applicable restrictions, the employer will grant paid holiday time off to all eligible nonexempt employees who have completed ninety (90) calendar days of service in an eligible employment classification. Holiday pay will be calculated based on the employees straight-time pay rate (as of the date of the holiday) times the number of hours the employee would otherwise have worked on that day. Eligible employee classification(s): Regular full-time employees

To be eligible for holiday pay, nonexempt employees must work the last scheduled day immediately preceding the holiday and the first scheduled day following 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 employees paid absence (e.g., vacation), holiday pay will be provided instead of the paid time off benefit that would otherwise have applied. If an eligible employee works on a recognized holiday, he or she will receive holiday pay plus wages at his or her straight-time rate for the hours worked on the holiday. Paid time off for holidays will be counted as hours worked for the purposes of determining overtime.

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5.0 Timekeeping/ Payroll 5.1 Timekeeping Accurately recording time worked is the responsibility of every nonexempt employee. Federal and state laws require the employer to keep an accurate record of time worked in order to calculate employee pay and benefits. Time worked is all the time actually spent on the job performing assigned duties. Nonexempt employees should accurately record the time they begin and end their work, as well as the beginning and ending time of each meal period. They should also record the beginning and ending time of any split shift or departure from work for personal reasons. Overtime work must always be approved before it is performed. Tampering, altering, or falsifying time records or recording time on another employees time record may result in disciplinary action, including discharge. Nonexempt employees should report to work no more than 15 minutes prior to their scheduled starting time nor stay more than 15 minutes after their scheduled stop time without expressed, prior authorization from their supervisor. It is the employees responsibility to sign his or her time record to certify the accuracy of all time recorded. The supervisor will review and then initial the time record before submitting it for payroll processing. In addition, if corrections or modifications are made to the time record, both the employee and the supervisor must verify the accuracy of the changes by initialing the time record. 5.2 Pay-day All employees are paid weekly every Thursday. Printed paychecks will include earnings for all work performed through the end of the previous payroll period (Sunday Saturday). For direct deposits, weekly detailed payroll information and deductions will be available online for viewing via www.viewmypaycheck.com or by request only; a paycheck stub will be printed. To access the paycheck information online, you must submit an e-mail to payroll to be activated. In the event that a regular scheduled payday falls on a day off (e.g., a weekend or holiday), employees will receive pay on the last day before the regular scheduled payday. 5.3 Direct Deposit Western Steel, Inc. has mandatory, direct deposit of paychecks for all employees. Employees may elect to have their paychecks deposited to any bank or credit union of their choice in the continental United States. An Authorization Agreement Form for Direct Deposit (sample of form on page 20) must be signed and sent to Payroll upon hire.
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Employees may have up to two accounts for direct deposit. If a second account is desired for direct deposit, it must have a set deposit amount. If an employee changes his or her bank or credit union or closes an account, the employee must complete another Authorization Agreement for Direct Deposit form and submit it to Payroll. Employees must notify payroll immediately of any changes. A printed paycheck may be substituted during a direct deposit account change. Employees needing to fill out a direct deposit form, please see your supervisor. Direct deposit remains in force until payroll receives an Authorization form to change it. It is the responsibility of the employee to notify Payroll regarding any change that affects direct deposit. 5.3.1 Benefits of Direct Deposit: Convenience Payments are automatically deposited to your account, even if you are traveling, on vacation, or ill. Savings No check cashing fees. Many banks offer free checking and other incentives for employees using direct deposit. Peace of mind No worries about having checks lost or stolen. Prompt payment Option of direct deposit into two accounts. Online viewing of pay stubs: www.viewmypaycheck.com

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5.3.2 (Sample Copy)

Authorization Agreement for Direct Deposit

I hereby authorize Western Steel, Inc. to initiate credit entries and, if necessary, to initiate debit entries and adjustments for any credit entries in error to my account(s) indicated below. I also authorize the depository or depositories named below to credit and/or debit the same to such account(s). This authority is to remain in full force until Western Steel, Inc. has received written notification from me of its termination. New Deposit Employee Name Cancel Deposit SSN Change Deposit Date

Employee Address

City, State Hourly Full time

Zip Code Hourly Part time

Employee Classification (circle one) Name of Bank or Financial Institution

Salary

City Bank Routing # Account #

State

Zip

Phone

Type of Account (Select One) Checking Savings

2nd Account (Optional) (Deposit must be for fixed amount): Name of Bank or Financial Institution

City Bank Routing # Account #

State

Zip

Phone

Type of Account (Select One) Checking Savings Alternative Phone #

Deposit Amount $

Home Phone # Signature (Required)

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5.4 Employment Termination Since employment with this organization is based on mutual consent, both the employee and the employer have the right to terminate employment at will, with or without cause, at any time. Terminations are an inevitable part of personnel activity within any organization and many of the reasons for termination are routine. Below are examples of some of the most common circumstances under which employment is terminated: RESIGNATION employment termination initiated by an employee who chooses to leave the organization voluntarily. DISCHARGE employment termination initiated by the organization. LAYOFF involuntary employment termination initiated by the organization for no disciplinary reasons. MEDICAL TERMINATION employment termination initiated by the employee or by the organization when an employee is unable, for health reasons, to continue to work. RETIREMENT voluntary retirement from active employment status initiated by the employee.

5.5 Administrative Pay Corrections The employer takes all reasonable steps to assure that employees receive the correct amount of pay in each paycheck and that employees are paid promptly on the scheduled payday. In the unlikely event that there is an error in the amount of pay, the employee should promptly bring the discrepancy to the attention of the employer so that corrections can be made as quickly as possible. Once underpayments are identified, they will be corrected in the next regular paycheck. Overpayments will also be corrected in the next regular paycheck unless this presents a burden to the employee (where there is a substantial amount owed). In that case, the employer will attempt to arrange a schedule of repayments with the employee to minimize the inconvenience to all involved. 5.6 Pay Deductions and Set-offs The law requires that the employer make certain deductions from every employees compensation. Among these are applicable federal, state, and local income taxes. The employer also must deduct Social Security taxes on each employees earnings up to a specified limit that is called the Social Security wage base. The employer matches the amount of Social Security taxes paid by each employee. The employer offers programs and benefits beyond those required by law. Eligible employees may voluntarily authorize deductions from their pay checks to cover the costs of participation in these programs. Pay setoffs are pay deductions taken by the employer, usually to help pay off a debt or obligation to
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the employer or others. If you have questions concerning why deductions were made from your pay check or how they were calculated, your supervisor can assist in having your questions answered. 6.0 Layoff 6.1 Layoff and Recall If a layoff is necessary, the layoff will be by classification. The company will make the decision as to how many employees are needed in each classification and the employees with the most company seniority will be retained within that classification. No employee will be allowed to transfer into a classification where employees are laid off; however if a previously transferred employee has been in a classification less than thirty (30) days, he will be given the option of returning to his previous classification at this time. The company reserves the right to temporarily assign any employee to another classification regardless of any layoff status. Employees will be recalled by classification and company seniority within each classification. All company paid employee benefits cease while an employee is on a layoff status, except health insurance which will remain in effect until the first day of the following month. An employee on layoff status for six (6) months or more is no longer subject to recall. 7.0 Work Conditions and Hours 7.1 Safety Establishment and maintenance of a safe work environment is the shared responsibility of the employer and employees from all levels of the organization. The employer will attempt to do everything within its control to assure a safe environment and compliance with federal, state, and local safety regulations. Employees are expected to obey safety rules and to exercise caution in all their work activities. They are asked to immediately report any unsafe conditions to their supervisor. Not only supervisors, but employees at all levels of the organization are expected to correct unsafe conditions as promptly as possible. All accidents that result in injury must be reported to the appropriate supervisor, regardless of how insignificant the injury may appear.

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7.2 Work Schedules The normal work schedule for all REGULAR employees is eight hours a day, five days a week. Supervisors will advise all employees of the times their schedules will normally begin and end. Staffing needs and operational demands may necessitate variations in starting and ending times, as well as variations in the total hours that may be scheduled each day and week. Employees may be assigned to any shift regardless of seniority. 7.3 Rest and Meal Periods Each work day, full-time nonexempt employees are provided with one rest period of ten (10) minutes in length. To the extent possible, rest periods will be provided in the middle of work periods. Since this time is counted and paid as time worked, employees must not be absent from their work stations beyond the allotted rest period time. Employees may not leave the property on paid time unless directed. All full-time REGULAR employees are provided with one meal period of thirty (30) minutes in length each work day. Supervisors will schedule meal periods to accommodate operating requirements. Employees will be relieved of all active responsibilities and restrictions during meal periods and will not be compensated for that time. 7.4 Overtime When operating requirements or other needs cannot be met during regular working hours, employees may be scheduled to work overtime hours. When possible, advance notification for these mandatory assignments will be provided. All overtime work must receive the supervisors prior authorization. Overtime assignments will be distributed as equitable as practical to all employees qualified to perform the required work. Overtime compensation is paid to all nonexempt employees at the following rate(s) and in accordance with federal and state laws: One and a half (1-1/2) times straight-time rate for all hours over forty (40) in a work week. As required by law, overtime pay is based on actual hours worked. Time off on sick leave or vacation leave will not be considered hours worked for purposes of performing overtime calculations. Failure to work scheduled overtime or overtime worked without prior authorization from the supervisor may result in disciplinary action, up to and including possible discharge.
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7.5 Use of Equipment and Vehicles Equipment and vehicles essential in accomplishing job duties are expensive and may be difficult to replace. When using property, employees are expected to exercise care, perform required maintenance, and follow all operating instructions, safety standards, and guidelines. Please notify the supervisor if any equipment, machines, tools, or vehicles appear to be damaged, defective, or in need of repairing. Prompt reporting of damages, defects, and the need for repairs could prevent deterioration of equipment and possible injury to employees or others. The supervisor can answer any questions about an employees responsibility for maintenance and care of equipment or vehicles used on the job. The improper, careless, negligent, destructive, or unsafe use or operation of equipment or vehicles, as well as excessive or avoidable traffic and parking violations, can result in disciplinary action, including discharge. 7.6 Emergency Closings Emergency conditions, such as severe weather, fire, flood, or earthquake, can disrupt company operations and interfere with work schedules, as well as endanger employees well-being. These extreme circumstances may require the closing of the work facility. When operations are required to close, the time off from scheduled work will be unpaid. 8.0 Employee Conduct and Disciplinary Actions 8.1 Employee Conduct and Work Rules To assure orderly operations and provide the best possible work environment, the employer expects employees to follow rules of conduct that will protect the interests and safety of all employees and the employer. It is not possible to list all the forms of behavior that are considered unacceptable in the work place, but the following are examples of infractions of rules of conduct that may result in disciplinary action, including suspension or termination of employment. Theft or inappropriate removal or possession of property. Falsification of timekeeping records. Working or reporting for work under the influence of alcohol or illegal drugs.
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Possession, distribution, sale, transfer, or use of alcoholic or illegal drugs on company property, while on duty, or while operating employer-owned vehicles or equipment. Fighting or threatening violence on company property. Boisterous or disruptive activity on company property. Negligence or improper conduct leading to damage of employerowned or customer owned property. Insubordination or other disrespectful conduct. Violation of safety or health rules. Sexual or other unlawful harassment Possession of dangerous or unauthorized materials, such as explosives or firearms, on company property. Excessive absenteeism or any absence without notice. Unauthorized absence from work station during the work day. Violation of personnel policies. Unsatisfactory performance or conduct. Any employee observed disposing of personal property (furniture, appliances, rugs, etc.) on any land owned by Western Steel, Inc. will be terminated. No smoking in office building(s) Do not throw cigarettes down on the ground

Employment with this organization is at the mutual consent of the employer and the employee, and either party may terminate that relationship at any time, with or without cause and with or without advance notice. 8.2 Cellular Telephones Phone and Texting This policy outlines the use of personal cell phones at work, the personal use of business cell phones and the safe use of cell phones by employees while driving. 8.2.1 Personal Cellular Telephones While at work, employees are to exercise the same discretion in using personal cell phones as they do for using company phones. Personal calls during the workday, regardless of the phone used, can interfere with employee productivity and be distracting to others. The company encourages a reasonable standard of limiting personal calls to rest periods and meal periods. Employees are therefore asked to make all personal calls on nonwork time and to ensure that friends and family members are aware of this policy. Flexibility will be provided in circumstances demanding immediate attention. The company will not be liable for lost or stolen personal cell phones brought into the workplace.

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Western Steel, Inc. 8.2.2 Personal use of Company Provided Cellular Telephones Where job or business needs demand immediate access to an employee, the company may issue a business cell phone to an employee for work-related communications. To keep cost down and to protect the employee from incurring a tax liability for the personal use of this equipment, such phones are to be used for business reasons only. Phone bills may be audited to ensure no unauthorized use has occurred. Personal calls will be limited to emergencies only. Employees in possession of company equipment such as cell phones are expected to protect the equipment from loss, damage or theft. Upon termination of employment and/or at any time, upon request, the employee may be asked to produce the phone for return or inspection. 8.2.3 Safety Issues for Cellular Telephone Use Employees whose job responsibilities include regular or occasional driving and who are issued cell phone for business use are expected to refrain from using their phone while driving company owned equipment. Safety must come before all other concerns. Regardless of the circumstances, including slow or stopped traffic, employees are strongly encouraged to pull off to the side of the road and safely stop the vehicle before placing or accepting a call/text message. If acceptance of a call is unavoidable and pulling over is not an option, employees are expected to keep the call short. Eyes should be kept on the road at all times. The same requirements apply to use of personal cell phones. Special care should be taken in situations where there is traffic, inclement weather, or the employee is driving in an unfamiliar area. Under no circumstances are employees allowed to place themselves at risk to fulfill their job duties or business needs. Employees who are charged with traffic violations resulting from the use of their cell phone while driving will be solely responsible for all liabilities that result from such actions 8.3 Social Media and Blogging This policy will help protect the privacy, confidentiality, and interests of our company and our current and potential products, employees, vendors, partners, and customers. 8.3.1 Respect and Privacy Rights Do not engage in name calling or behavior that will reflect negatively on our company or an employees reputation. Speak respectfully about the company, current employees, vendors, customers, and partners. Our company encourages you to write knowledgeably, accurately, and
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using appropriate professionalism. You may not share any information that is confidential and proprietary about the company. This includes information about sales, finances, number of employees, company strategy, and any other information that has not been publicly released by the company. These are given as examples only and do not cover the range of what our company considers confidential and proprietary. If you have any question about whether information has been released publicly or doubts of any kind, speak with your manager before releasing information that could potentially harm our company, employees, vendors, partners, and customers. Honor the privacy rights of our current employees by seeking their permission before writing about or displaying internal company happenings that might be considered to be a breach of their privacy and confidentiality. 8.3.2 Legal Liability - Recognize that you are legally liable for anything you write or present online. Employees can be disciplined including termination for commentary, content, or images that are defamatory, pornographic, proprietary, harassing, libelous, or that can create a hostile work environment. Remember that you are ultimately responsible for your online behavior and should avoid content or actions that are questionable. 8.4 Information Systems Security Do not share specifics of the companys security or technology practices. In addition, never share specific information regarding the layout of our physical buildings. Such details can be abused by unethical individuals to breach company security. 8.5 Internet and E-mail Usage Internet usage conducted outside of business activity brings the possibility of contamination to our system via viruses or spyware. Spyware allows unauthorized people, outside the company, potential access to company passwords and other confidential information. The company owns any communication sent via e-mail or that is stored on company equipment. Management and other authorized staff have the right to access any material in your e-mail or on your computer at any time. Any e-mails that discriminate against employees by virtue or any protected classification including race, gender, nationality, religion, and so forth, will be dealt with according to the Employee Conduct and Work Rules Policy (Page 24). Viewing pornography, or sending pornographic jokes or stories via internet or email usage on company property or time, is considered sexual harassment and will be addressed according to our Sexual Harassment Policy (Page 31)
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8.6 Attendance and Punctuality To maintain a safe and productive work environment, the employer expects employees to be reliable and to be punctual in reporting for scheduled work. Absenteeism and tardiness place a burden on other employees and on the employer. In the rare instance an employee cannot avoid being late to work or is unable to work as scheduled, he or she should notify the supervisor within two (2) hours of the start of his shift. Failure to do so may result in disciplinary action as follows: 1st failure to report 2nd failure to report 1st unexcused absence 2nd unexcused absence 3rd unexcused absence Three-day layoff Subject to dismissal Written warning Three-day layoff Subject to dismissal

Employees absent 12 days (96 hours) in any calendar year or any twelve-month period will be subject to review and possible dismissal. For the purposes of calculating absenteeism, absences of less than one hour but one-half hour or more shall be counted as a full hour. 8.7 Personal Appearance Dress, grooming, and personal cleanliness standards contribute to the morale of all employees and affect the business image we present to customers and visitors. During business hours, employees are expected to present a clean and neat appearance and to dress according to the requirements of their positions. Employees who appear for work inappropriately dressed will be sent home and directed to return to work in proper attire. Under such circumstances, employees will not be compensated for the time away from work. Not appropriate to wear examples: Cut-off sleeves Shorts Flip-flops (Yard/Shops) Pajama Pants Pants with large holes

Consult your supervisor or department head if you have questions as to what constitutes appropriate attire.

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8.8 Resignation Resignation is a voluntary act initiated by the employee to terminate employment with the employer. Although advance notice is not required, the employer requests at least one weeks written resignation notice form all employees. 8.9 Substance Abuse Testing The company maintains a strict policy against the use of unlawful drugs while on duty, while on company premises, and while operating company equipment. To facilitate the administration and enforcement of this policy, the company may require or request job applicants and employees to submit to drug or substance abuse testing under certain circumstances. 8.9.1 Pre-Employment All job applicants applying for employment with the company must submit to and pass a drug screening test. All offers of employment are conditioned upon the successful completion of the testing procedure. 8.9.2 For Employees Western Steel may test employees for controlled substances at any time and under any circumstances. Such testing includes but is not limited to random testing, testing based on suspicion and postaccident testing. Western Steel maintains a drug free workplace and reserves the right to take all measures to ensure that its workplace and workforce are drug and alcohol free. 8.9.3 Reasonable Suspicion In cases when an employees supervisor or other company superior has reasonable suspicion to believe that the employee possesses or is under the influence of drugs and/or alcohol and such use or influence may adversely affect the employees job performance, or the safety of the employee or co-workers, alcohol and/or drug screening may be ordered. This suspicion must be based on any objective symptoms, such as factors related to the employees appearance, behavior, speech, and/or other facts. If an employee is on medicallyprescribed medication, it is the employees responsibility to advise his supervisor of this fact before he reports to work. Testing may also be required if an employee is found to be in possession of physical evidence, i.e., drugs, alcohol or paraphernalia possibly connected with the use of an illicit drug. Testing may also be required if illicit drugs and/or alcohol are found in the employees immediate work area. However, it should be emphasized that possession of drugs or alcohol is prohibited whether or not it is determined that the employee also used such substances.
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Western Steel, Inc. 8.9.4 Post-Accident Any current employee who is involved in a serious incident or accident while on duty, whether on or off the employers premises, may be asked to provide a body substance sample. Subject to any limitations imposed by law, a refusal to provide a body substance sample under the conditions described above may result in disciplinary action, up to and including discharge. 8.9.5 DOT Testing Any driver who refuses to be tested under the provisions of the DOT regulations will not be permitted to operate a commercial motor vehicle. Any driver who tests positive for drugs will be subject to immediate dismissal. 8.9.6 Testing Violation of this policy or failure to cooperate fully with any request to test may result in disciplinary action up to and including termination. 8.9.7 Positive Test In the event that a drug or alcohol test shows the presence of alcohol or controlled substances, the employee testing positive will be subject to immediate termination, at the sole discretion of Western Steel, and the availability of any other disciplinary action will not limit Western Steels option to terminate. In the event an employee tests positive for drugs or alcohol on a random drug screening, there is no suspicion of on-the-job influence or use, and it is the employees first positive screening result, Western Steel may elect to forego immediate termination and opt instead to immediately suspend the employee without pay, with an opportunity to be reinstated on the following conditions: The employee must submit to drug and alcohol education, counseling, rehabilitation, treatment, or other course of action or treatment as recommended by a substance abuse professional (SAP) selected by Western Steel. The employee must pass a follow up drug and alcohol test with no controlled substances or alcohol being detected by the test. The employee must submit to monthly drug and alcohol screening for a period of one (1) year after reinstatement. A second positive test on a follow up or other drug or alcohol test will result in immediate termination. All expenses for subsequent drug testing after the initial positive drug screening shall be at the employees expense.
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In the event an employee tests positive for drugs or alcohol on a postaccident or reasonable suspicion screening, that employee will be terminated immediately. 8.10 Sexual Harassment Western Steel, Inc. is proud of its tradition of promoting a work environment in which all individuals are treated with respect and dignity. Western Steel has developed this sexual harassment policy to help ensure that all its employees will be given the opportunity to work in an environment free from unlawful discrimination, including sexual harassment. At Western Steel, sexual harassment of any kind is strictly prohibited and will not be tolerated. 8.10.1 Definition of Sexual Harassment Prohibited sexual harassment consists of unwelcome sexual advances, requests for sexual favors, or other unwelcome verbal or physical conduct of a sexual nature when: Submission to such conduct is made an explicit or implicit term for condition of employment; Submission to or rejection of such conduct by an individual is used as the basis for decisions affecting the individuals employment; Such conduct has the purpose or effect of unreasonably interfering with an individuals work performance, or creating an intimidating, hostile or offensive work environment.

8.10.2 Examples of Prohibited Conduct The following are examples of what may constitute sexual harassment, depending on individual circumstances: Verbal harassment or abuse of a sexual nature, including graphic comments, the display of sexually suggestive objects or pictures, and sexual proposition; Repeated unwelcome solicitation of sexual activity or sexual contact: Unwelcome, inappropriate sexual touching; Demands for sexual favors accompanied by promises of preferential treatment or by threats with regard to an individuals employment.

8.10.3 Individuals Covered Under this Policy This policy covers all individuals in the workplace. Western Steel will not tolerate, condone, or allow unlawful sexual harassment in its workplace and any employee found
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to have violated this policy shall be subject to immediate disciplinary action, up to and including termination. 8.10.4 Reporting Sexual Harassment Western Steel cannot prohibit conduct it does not know about. Therefore, Western Steel strongly encourages any employee who has been subjected to sexual harassment or has been witness to sexual harassment to report such conduct immediately. Formal Complaint Any employee with reason to believe that he or she has been or is being subjected to any form of sexual harassment should report the matter to his or her immediate general manager or the president of Western Steel immediately. All complaints should be in writing and should fully and accurately describe the circumstances giving rise to the complaint, and should identify the behavior found to be objectionable. Informal Investigation and Resolution The complaining individual may choose to report the conduct to his or her supervisor to attempt to resolve the situation informally within his or her own department. If the complaint is not informally resolved to his or her satisfaction, the complaining employee should immediately report said conduct to his or her general manager or the president of Western Steel and should file a formal complaint with Western Steel. Investigation All formal complaints of sexual harassment will be investigated by Western Steel. Investigation may consist of an interview of the complaining party, the individuals against whom the complaint has been made, and other appropriate persons. When the investigation is concluded, the results of the investigation should be communicated to both the complaining employee and the individuals against whom the complaint has been made.

8.10.5 Disciplinary Measures - Any employee found to have engaged in sexual harassment in violation of this policy will be subject to immediate disciplinary action, up to and including termination. The action taken will depend on the particular facts and circumstances of each situation and is in the sole discretion of Western Steel 8.10.6 Retaliation Prohibited Any form of retaliation or adverse action imposed for any good faith report of sexual harassment is strictly prohibited. Retaliation is a serious violation of this policy and should be reported immediately. Any person found to have retaliated against another
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individual in violation of this policy will be subject to immediate disciplinary action, up to and including termination. 8.10.7 Confidentiality To the extent practical and appropriate under the circumstances, all reports of sexual harassment should be kept confidential; however, complete confidentiality cannot be guaranteed. Western Steel, Inc. has developed this policy to establish that sexual harassment will not be tolerated and to provide guidelines for reporting and investigation of sexual harassment. The establishment of this policy should help ensure that all Western Steels employees can work I n an environment free of sexual harassment. This policy is not contractual in nature and will not alter the at-will status of any employee.

______________________________________ William B. Cashion CEO

______________________________________ Fred Campbell President

______________________________________ Jason Spinks Vice President

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