Concrete Materials, Inc., has established a variety of benefit programs designed to assist you and your eligible dependents in meeting the financial burdens that can result from illness and disability and to help you plan for retirement.   This section of our handbook is meant to highlight some features of our benefit programs. Our group health and any related programs are described more fully in Summary Plan Description booklets, which you are provided once you are eligible to participate in these programs. In the event of any contradiction between the information appearing in this handbook, our Summary Plan Description booklet and the information that appears in the master plan document, the master contract/document shall govern in all cases. The Company reserves the right to amend or terminate any of these programs or to increase or decrease employee premium contributions toward any benefits at its discretion. GROUP INSURANCE Upon completion of a full-time employee's introductory period, he or she becomes eligible for insurance and must apply for insurance at that time. Those who apply become covered by insurance 30 days after their application is received. Your group insurance plan provides the coverages, which are outlined in detail in the insurance booklet available to each participant. Your Company currently pays fifty (50) percent of the cost of the employee and dependent coverage while on the payroll. Insured employees, who are subject to winter layoff, may continue their insurance but will be required to pay the full premium. To make it easier for an employee to budget for their insurance in the case of layoff, an employee may arrange through the Human Resource Director to have the estimated cost of insurance during the layoff period deducted from their paycheck during working months. Any over or underpayment will be adjusted upon the employee's return to work. Employees may take advantage of such continuation of coverage for six months. After that time period, the employee may continue coverage under COBRA, but he/she will be required to pay the entire premium. COBRA gives you the right to continue coverage of your group health insurance if you lose it due to such reason as a reduction in your work hours or termination of employment (if not due to gross misconduct on your part). In most, cases, you have the right to continue coverage for up to 18 months. Your dependents may also have the right to continued coverage. If you have any questions regarding COBRA, please contact the Human Resources Director. As in the past, it is your Company's intention to periodically review and update insurance coverage to assure reasonable protection for employees and their eligible dependents.       401(k) PLAN The Company provides a very generous 401(k) plan for its employees who have worked for one year and 500 hours. Upon becoming eligible, you will receive a summary plan description, which provides details of the plan.       EMPLOYEE ASSISTANCE PROGRAMS The Company realizes that a variety of problems not directly associated to your work can be detrimental to your work performance. Such things include marital or family problems, alcoholism or drug abuse. As a result, we provide an Employee Assistance Program, which provides referrals to local community treatment sources. All employees and their family are free to use this program and we encourage you to do so if necessary. Employees and their family are each allowed three free visits. Use of the Employee Assistance Program is kept confidential. Please realize that participation in the Employee Assistance Program does not excuse you from complying with normal Company policies or from meeting normal job requirements before, during or after receiving assistance. Neither does it prevent the Company from taking disciplinary action against an employee for performance problems that occur before, during or after the employee seeks assistance through the program. Employees interested in learning more about our Employee Assistance Program should contact the Human Resources Director.(605) 357-6000       SECTION 125 So that our employees can realize tax savings, the Company provides a Section 125 plan. Under this plan, employees may choose to have their insurance premiums, certain medical, dental and vision expenses, and child care costs deducted from their paychecks prior to taxes being calculated. In other words, these costs are paid for by pretax dollars. Depending upon the amount of your expenses, this can result in your paying substantially less in taxes. If you would like more information about this plan, please contact the Human Resources Director.       PAID HOLIDAYS Regular full-time employees are eligible to receive eight (8) hours of straight time pay for the holidays listed below: New Year's Day Memorial Day Independence Day Labor Day Thanksgiving Day Christmas Day Personal Day To qualify for holiday pay, an employee must have worked thirty (30) continuous days on the payroll as a regular full-time employee and have worked the scheduled work day prior to and the scheduled work day following the holiday; except in excused cases of disability, emergency or other substantial cause that is approved in advance by the employee's supervisor. Request for your Personal Day must be made two weeks in advance and must have the supervisor's approval. Should the workload not accommodate multiple requests, the employee(s) applying first will receive consideration. If any of the holidays specified above fall on a Saturday or Sunday, the Company may decide to observe the holiday on either the preceding Friday or the following Monday. If a holiday falls within an employee's vacation period, the day will be considered a holiday and not a vacation day.       PAID VACATIONS Your Company recognizes the importance and the necessity of time away from your job for purposes of leisure, recreation and relaxation. Full-time employees will accrue vacation credit for continuous service as outlined in the following schedule. Length of Continuous Service Maximum Hours of Pay Possible 52 weeks 40 hours 156 weeks 80 hours 520 weeks 120 hours 1040 weeks 160 hours Those employees, who have worked 1600 straight time hours or more, will be considered to have earned full vacation. If the employee works less than 1600 straight time hours, his/her hours of earned vacation will be equal to the ratio of hours worked to 1600 hours. EXAMPLE John Doe has worked 1150 hours from January 1 to January 1. His vacation hours are calculated as follows: 1150 hrs. divided by 1600 hrs = 71.88% For 52 weeks of continuous service: 40 hrs x .7188 = 29 vacation hours earned For 1040 weeks of continuous service: 160 hrs x .7188 = 115 vacation hours earned Continuous length of service must be as a full-time employee and be equal to the sum of the number of weeks worked on the Company's payroll in previous years. Employees who quit and are rehired at a later time will not be considered to have continuous service. Vacation hours, for which you are eligible, are computed at your normal rate of pay for a regular forty (40) hour workweek. Vacation time is not cumulative from year to year. You may request to use your vacation at any time during the year. However, please realize that due to the seasonal nature of our business and the need to efficiently operate at all times, we may not be able to honor all vacation scheduling requests. Thirty (30) days advance notice is required. Shorter notice periods will be accepted in emergency cases. Employees may take vacation in one-day increments. In instances where two or more employees of a given area request the same vacation period and where the work load of the area will not accommodate all requests, the employee who requested vacation first will be given preference in their selection. Conditions may arise where operations of the Company may shut down for a period of time. If you have vacation time coming, you are encouraged to take your vacation during this period. Also, if you are laid off, employees are required to use any earned vacation during the layoff period. An employee will have earned one week of vacation on the date he/she has completed 52 weeks of continuous service as a full-time employee. After completion of 52 weeks of continuous service and 1600 hours, an employee's vacation will be calculated from January 1 to January 1. EXAMPLE John Doe was hired on August 15. On August 15 of the following year, John Doe has completed his 52 weeks of continuous service as a full-time employee and has worked 1600 hours. He will have earned 40 hours of vacation as of August 15. If John Doe works from August 15 to January 1 (an additional 19 weeks) he will have earned an additional 15 hours of vacation (19 divided by 52 multiplied by 40 hours) on January 1. If an employee accumulates enough weeks of continuous service in one singular calendar year to put them in another vacation hour bracket, his/her vacation hours will be calculated on the basis of the new bracket. Normally, vacation must be used up by April 1 each year of it will be forfeited. In some cases, the Company may allow you to carry over small amounts of vacations (40 hours or less) to be used by June 1. Permission to carry over vacation must be granted in advance by your supervisor.       EDUCATIONAL AID PROGRAM Continuing education is important to your personal growth. Your Company will reimburse the full cost of tuition, books and supplies upon successful completion of work-related courses. The individual program must be job-related, taken after work hours and approved by management in advance of enrollment. In addition, you must have completed 180 days of employment before becoming eligible for this benefit and you must work an additional 180 days before you will be reimbursed. From time to time, at the Company request, employees will be enrolled in Company sponsored training programs; the entire cost of these programs will be paid by the Company.       FAMILY & MEDICAL LEAVES OF ABSENCE Under the Family and Medical Leave Act of 1993 ("FMLA"), employees who have been with the Company for at least 12 months; have worked at least 1,250 hours during the 12 months immediately preceding commencement of the leave; and are employed at a worksite where 50 or more employees are employed by the employer within 75 miles of that worksite are eligible for Family and Medical Leave. This leave consists of up to 12 weeks of unpaid leave during a 12-month period for any of the following reasons: The birth and /or care of a newborn son or daughter. The placement of a son or daughter with you for adoption or foster care. To care for a spouse, son, daughter or parent with a serious health condition. Your own serious health condition, which makes you unable to perform your job. The 12-month period is determined on a "rolling" basis, measured backward from the date an employee uses any FMLA leave. Under this method, each time an employee takes FMLA leave, the remaining leave entitlement would be any balance of the 12 weeks, which has not been used during the immediately preceding 12 months. For example, if you use four weeks beginning February 1, 1998, four weeks beginning June 1, 1998, and four weeks beginning December 1, 1998, you would not be entitled to any additional leave until February 1, 1999. However, on February 1, 1999, you would be entitled to four weeks of leave; on June 1, you would be entitled to an additional four weeks, etc. You will be required to take any unused vacation time as part of this 12 weeks. In the case of foreseeable leave, you must provide 30 days' advance notice, if possible. In most cases, you will be able to provide this notice. However, in rare cases, you may not have 30 days' notice. Under those circumstances, you should provide us with notice as soon as possible. If it is necessary for you to take leave to obtain planned medical treatment, you must make a reasonable effort to schedule the treatment so it does not disrupt the Company's operations. You are also required to provide 30 days' notice. If there are extenuating circumstances, which do not allow for 30 days' notice, you must provide notice as soon as possible. In the case of leave due to the serious health condition of you or your spouse, child or parent, you will be required to provide appropriate medical certification. This certification must include the date the serious health condition commenced; the probable duration of the condition; and, in the case of your own serious health condition, a statement from a physician that you are unable to perform your job duties. In addition, if your leave is to care for a family member, the physician must indicate that you are needed to care for the family member and provide an estimate of the time you will be needed. Upon return from your leave, we will reinstate you to your former position or to an equivalent position. However, certain highly paid employees may not be reinstated. In that event, you will be notified of the Company's decision to deny reinstatement. If the leave has already begun at the time you receive the notice, you have the option of deciding whether or not to return to work. Your benefits will not continue to accrue during the period of your unpaid leave. However, any group insurance you had prior to leave will continue during the term of your leave on the same basis as if you were not absent from work. Please note that if you fail to return from your leave, we may recover from you the cost of any premiums paid on your behalf to continue insurance coverage. It is impossible to cover all aspects of family and medical leave in this handbook. Therefore, when you determine that you will need to take leave under this policy, please contact the Human Resources Director for additional details.       GENERAL LEAVES OF ABSENCE In case of illness, or for unusual personal reasons, you may be granted a leave of absence without pay. Such leaves of absence will be considered on a case-by-case basis. Employees who expect to be absent for more than 5 days must submit a written request for a leave of absence to their supervisor as far in advance of the anticipated leave date as possible (in most cases, a request should be submitted at least fifteen (15) days prior to commencing leave). If absence is due to an emergency, the employee or a member of the immediate family must inform the employee's supervisor as soon as possible. All fringe benefits will be suspended during a general leave of absence. If an employee fails to return from his or her leave of absence on the scheduled date, he or she will be considered to have voluntarily quit their employment. Arrangements regarding insurance premium payments must be taken care of prior to the commencement of the leave of absence. Reinstatement cannot be guaranteed to any employee returning from a general leave of absence. We try, however, to place employees returning from general leave in their former position or positions comparable in status and pay. The Company will comply with all applicable state and federal leave laws.       BEREAVEMENT LEAVE Regular full-time employees will be given one (1) day off with pay for attendance at a funeral in the event of death in the immediate family. Immediate family shall include spouse, children, stepchildren, brothers, sisters, father, mother, father-in-law, and mother-in-law. Employees may take additional time off without pay as necessary and with supervisor approval.       MILITARY LEAVES OF ABSENCE Employees needing a leave of absence in order to fulfill their military obligations should contact their supervisor as soon as possible. Unpaid leaves will be given for the time period required by applicable law. Employees may use accrued vacation if they would like to receive some pay during the leave. Your Company will also comply with all applicable state and federal laws with regard to the reinstatement of the returning military personnel.       JURY SERVICE Employees who are called for jury service shall be excused from work for the days on which they serve; and they shall receive for each day of jury service on which they otherwise would have worked, the difference between eight (8) times their average straight time hourly earnings and the payment they receive for jury service, less expenses. The employees are excused from such jury service on any day in time to enable them to work at least four (4) hours on that day; they will be expected to report for work.       SOCIAL SECURITY Your Company matches, dollar for dollar, all employees' present contributions to Social Security for old age, disability and survivor's insurance and, under certain circumstances, for your dependents in the event of your death. Your personal share of this contribution is handled through payroll deduction.       UNEMPLOYMENT COMPENSATION South Dakota law permits you to obtain Unemployment Insurance benefits if you become unemployed due to certain circumstances. This program is administered by the State of South Dakota with costs paid by the Company.       WORKERS' COMPENSATION The Company provides Workers' Compensation coverage for job-related injuries. This plan is governed by the State of South Dakota and the Company pays the cost of this compensation.