FIRST AMENDMENT TO THE ENERGY COOPERATIVE EMPLOYEE HANDBOOK

Transcription

1 FIRST AMENDMENT TO THE ENERGY COOPERATIVE EMPLOYEE HANDBOOK WHEREAS, effective January 1, 2003, The Energy Cooperative introduced the Employee Handbook (the Handbook ). WHEREAS, it is necessary to amend said Handbook. NOW, THEREFORE, said Handbook is amended as follows: 1. Effective August 1, 2004, paragraphs two and five of the INTRODUCTION is amended to read as follows. This Employee Handbook has been prepared as a guide and reference for all Employees regarding policies, procedures, and benefits observed by Licking Rural Electrification, Inc., known under (LRE), and its subsidiary corporations National Gas & Oil Cooperative, NGO Development Corporation, NGO Propane Cooperative, NGO Transmission, Inc. The Energy Cooperative, hereinafter referred to as the Cooperative is the trade name used by LRE and its subsidiaries, which operate as separate corporations. This handbook has the unqualified approval of the Board of Directors of the Cooperative. For the purpose of collective bargaining, it is noted and recognized that there is an Agreement that has been entered into between National Gas & Oil Cooperative, NGO Transmission, Inc. and the International Union of Operating Engineers, Local 18-S, hereinafter referred to as the Union. Any variances between this handbook and the Union Agreement will be noted throughout. 2. Effective August 1, 2004, the section entitled BENEFITS, subsection entitled RETIREMENT PLAN BENEFITS, paragraph two on page 40 is amended to read as follows. Note: Employees of National Gas & Oil Cooperative, NGO Propane Cooperative, NGO Development Corporation and NGO Transmission, Inc. who were hired prior to January 1, 2000 may also be a participant in the Employee s Retirement Plan of National Gas & Oil Corporation (NGO Plan). Benefit accruals in the NGO Plan were frozen on December 31, The NGO Plan has since been replaced with the R&S Program. Further details about the NGO Plan are not described in this handbook but rather the NGO Plan s Summary Plan Description. 3. Effective August 1, 2004, the section entitled BENEFITS, subsection entitled HOLIDAYS, paragraph one on page 44 is amended to add the following. Non-exempt employees who are required to work on Easter, will receive two (2) times their regular hourly rate for hours actually worked. Continuous operation employees in the Control Center will receive eight (8) hours holiday pay at their regular hourly rate plus two (2) times their regular hourly rate for hours actually worked on Easter.

2 4. Effective August 1, 2004, the section entitled BENEFITS, subsection entitled VACATION, paragraph one on page 45 is amended to read as follows. Full-time employees are eligible to receive paid vacation after the completion of six months of continuous employment. Union employees may have a longer waiting period before reaching eligibility. Vacation time is earned and paid according to the following schedule. 5. Effective August 1, 2004, the section entitled LEAVES OF ABSENCE & DISABILITY, subsection JURY / WITNESS DUTY LEAVE, paragraph one on page 51 is amended to read as follows. The Cooperative supports your responsibility to the community. Full-time employees who are summoned to serve as a juror or witness in court will receive the difference in pay between their regular straight time and the court allowance for the same period of time, not to exceed to (2) weeks in any calendar year. Benefits and seniority will continue provided the pay differential is being paid. Approved By: July 31, 2004 David L. Potter Date President and CEO EE HANDBOOK FIRST AMENDMENT.doc

3 SECOND AMENDMENT TO THE ENERGY COOPERATIVE EMPLOYEE HANDBOOK WHEREAS, effective January 1, 2003, The Energy Cooperative introduced the Employee Handbook (the Handbook ). WHEREAS, it is necessary to amend said Handbook. NOW, THEREFORE, said Handbook is amended as follows: 1. Effective July 1, 2005, the section entitled PAY & PERFORMANCE, subsection entitled OVERTIME, page 27 is amended to read as follows. Employees who are Non-Exempt (i.e. paid on an hourly basis) are entitled to overtime pay at the rate of one-and-one-half times their regular rate of pay for hours worked in excess of 40 hours per work week. Hours recorded for vacation, sick or holiday are considered as hours worked for purposes of calculating overtime pay. Each supervisor makes every reasonable effort to distribute overtime as equitable as possible among employees qualified to do the work. No employee is permitted to work overtime without the department supervisor s approval. When an emergency outage situation occurs, all Non-Exempt, non-union employees are entitled to overtime pay at the rate of two times (double time) their regular rate of pay for all hours worked during the declared emergency. For purposes of this paragraph, a declared emergency situation is defined when the Ohio Rural Electric Cooperative Association (OREC) requests assistance from the Cooperative s personnel to assist another cooperative in their outage restoration efforts as a result of a disastrous weather situation; or, when the Cooperative requests additional personnel through OREC to aid us in disastrous weather emergency outage restoration efforts. In a declared emergency situation, at the discretion of the Cooperative s CEO, a discretionary bonus payment may be made to an Exempt employee for their extra efforts during the declared emergency. Approved By: July 18, 2005 David L. Potter Date President and CEO SECOND AMENDMENT.doc

4 THIRD AMENDMENT TO THE ENERGY COOPERATIVE EMPLOYEE HANDBOOK WHEREAS, effective January 1, 2003, The Energy Cooperative introduced the Employee Handbook (the Handbook ). WHEREAS, it is necessary to amend said Handbook. NOW, THEREFORE, said Handbook is amended for all non-union employees as follows: 1. Effective January 1, 2006, the section entitled BENEFITS, subsection entitled VACATION, pages 45-47, is deleted in its entirety for all non-union employees. 2. Effective January 1, 2006, the section entitled LEAVES OF ABSENCE & DISABILITY, subsection entitled DISABILITY LEAVE, Sick Pay, page 55 is deleted in its entirety for all non-union employees. 3. Effective January 1, 2006, the section entitled LEAVES OF ABSENCE & DISABILITY, is amended for all non-union Employees to add a subsection entitled PAID TIME OFF (PTO) LEAVE. Subsection entitled PAID TIME OFF LEAVE (PTO) reads as follows. PAID TIME OFF LEAVE (PTO) All full-time, non-union employees who have competed at least 3 months of employment are eligible to begin accruing Paid Time Off Leave (PTO). PTO can be used for vacation, personal time, medical or dental appointments, illness, time off to care for dependents, or any other personal need. PTO Accrual: The amount of PTO available is based on your length of service according to the following schedule. PTO hours are available on January 1 of each calendar year. For purposes of this subsection, day(s) means 8 hours. Paid Time Off Leave Completed Years of Service 40 Hours (5 days) First (1 st ) calendar year of employment, hired July 1 through December Hours (9 days) First (1 st ) calendar year of employment, hired January 1 through June Hours (17 days) Second (2 nd ) calendar year of employment 176 Hours (22 days) Seventh (7 th ) calendar year of employment 216 Hours (27 days) Fifteenth (15 th ) calendar year of employment 256 Hours (32 days) Twenty Fifth (25 th ) calendar year of employment

5 Years of service are based on your year of hire. For example, if you were hired in the year 2005, your first year of service would be All PTO time is earned after the completion of 3 months of service. Earned PTO leave time is to be taken within the calendar year (January 1 through December 31). The following are examples of how PTO leave is accrued: 1. Employee was hired full-time on After the employee has completed 3 months of service, their PTO eligibility is as follows: First year of employment Year 2005: 72 hours / 9 days Second year of employment Year 2006: 136 hours / 17 days Seventh year of employment - Year 2011: 176 hours / 22 days Fifteenth year of employment - Year 2019: 216 hours / 27 days Twenty Fifth year of employment - Year 2029: 256 hours / 32 days 2. Employee was hired full-time on After the employee has completed 3 months of service, their PTO eligibility is as follows: First year of employment Year 2005: 40 hours / 5 days Second year of employment Year 2006: 136 hours / 17 days Seventh year of employment - Year 2011: 176 hours / 22 days Fifteenth year of employment - Year 2019: 216 hours / 27 days Twenty Fifth year of employment - Year 2029: 256 hours / 32 days Use of Scheduled PTO Leave: All requests for PTO must be approved well in advance by your department supervisor. PTO may be scheduled at any time during the calendar year and is granted on a first come, first serve basis. However, there may be times when a PTO request cannot be approved due to the needs of the department or Cooperative. Except in the case of illness or emergency, no employee will be permitted to take PTO that was not previously approved by the department supervisor. If a Cooperative observed holiday falls during your scheduled PTO you will be paid for the holiday rather than having to use PTO. Use of Unscheduled PTO: Request for the use of unscheduled PTO leave, such as for sudden illness or emergencies, must be directed to your immediate supervisor, by you, no later than the start of your normal reporting time. Should your supervisor be unavailable, you must leave a message on your supervisor s voice mail or cell phone. If you are physically incapable of notifying your supervisor, you must have someone else give notification for you. Failure to notify your supervisor will result in disciplinary action up to and including termination of your employment. If you take PTO for 5 consecutive calendar days, you may be eligible for Short- Term Disability. If you take 5 or more consecutive PTO days for illness, you must notify the Human Resources department immediately to obtain the proper paperwork to file for Short-Term Disability benefits. Failure to due so will result in an interruption in your pay. Short-Term Disability will not be paid without the proper approval of a completed

6 Short-Term Disability Claim Form. Short-Term Disability is described further in the next section of this Amendment. Payment of PTO: PTO is paid at your regular rate of pay. All requests for payment of approved PTO should be indicated on your bi-weekly timesheet. Carry Over: A maximum of 10 days (80 hours) of PTO can be carried over to the next calendar year. Any PTO in excess of 10 days (80 hours) at the end of the calendar year will be lost. Under no circumstances will any employee be permitted to carry over more than 10 days (80 hours) of PTO from year to year. In addition, PTO will not be paid out in lieu of PTO not taken, unless specifically outlined otherwise in this subsection. Change in Status: If you have a change in status (i.e., change to part-time status) which makes you no longer eligible for PTO, you will be paid for all eligible unused PTO on the effective date of the change. Break in Service: If you incur a break in service, such as terminate employment and then rehire at a later date, your PTO eligibility will start over as if you were newly hired. Leave of Absence: You may be eligible to accrue PTO while you are on certain approved leaves of absence, such as military leave. You will be notified by Human Resources of your eligibility to continue to accrue PTO leave at your time of leave. Under most circumstances, however, if you are on a leave other than Military that extends beyond twelve (12) months, you will not accrue additional PTO and if you have not returned to active work, your employment with the Cooperative will be terminated. Termination of Employment: If you terminate employment prior to using your earned PTO for that calendar year you will be paid for all eligible unused PTO. If you terminate employment prior to completing 3 months of service, no PTO will be paid. Retirement: If you retire in accordance with the Cooperative s IRS Qualified Retirement Plan guidelines, you will be paid for all eligible unused PTO leave for that calendar year. 4. Effective January 1, 2006, the section entitled LEAVES OF ABSENCE & DISABILITY, subsection entitled DISABILITY, pages is amended for all non-union employees to read as follows. DISABILITY LEAVE The problems of an illness can be seriously increased if you are faced with the loss of your income. For that reason, the Cooperative has established a disability benefit to provide you with a source of continued income during this time. Full-time, non-union employees with at least 3 months of service are eligible for participation in the disability program. The disability program consists of three parts:

7 Paid Time Off Leave, Short Term Disability, and Long Term Disability. The Cooperative pays the entire cost of the Paid Time Off Leave plan. Paid Time Off Leave is described in the previous section of this Amendment. Short-and-Long Term Disability benefits are provided only if you enroll in the Group Benefits Plan. Short-Term Disability As a full-time, non-union employee who is enrolled in the Group Benefits Plan and has completed at least 3 months of employment, you may be eligible for Short-Term Disability (STD) pay in the event of a disability that prevents you from working. Benefits become payable after satisfying the waiting period below provided you are totally disabled and under the care of a physician. The waiting period for commencement of STD benefit to be payable is as follows: Accident: Sickness: 0 days 5 days Payment of STD: Once you have satisfied the above waiting period and exhausted up to 5 Workdays of PTO Leave (if available and as necessary to cover the waiting period), STD income will provide you a benefit of 100% of your base pay per regularly scheduled Workday. STD may continue for up to a maximum of 13 weeks provided you are totally disabled as certified by your physician and have completed the necessary paperwork to file for this benefit. STD benefits are subject to appropriate tax withholdings and any scheduled deductions you have established. For purposes of this section, the term Workday means any one of 5 days which the Employee is or would be, but for his or her disability, regularly scheduled to work. A Workday consists of 8 hours each calendar day. There are certain circumstances and exclusions in which STD benefits are not payable. For more detailed information on STD benefits, please refer to your Group Benefits Plan Summary Plan Description. Long-Term Disability The long-term disability plan is designed to provide you with income during periods that you may be unable to work due to accidents or sickness. To be eligible for long-term disability (LTD) benefits, you must meet certain conditions. As a full-time employee, actively enrolled in the Group Benefits Plan, you may be eligible for LTD benefits should you become disabled. LTD benefits pay you 66 2/3% of your regular monthly earnings up to a maximum monthly benefit of $15,000. The minimum monthly benefit is $65. This benefit may be reduced by other certain benefits to which you may be entitled to such as Workers Compensation Benefits, Social Security Benefits, Benefits from other Federal, State, or Employer Sponsored Plans. This

8 means that the total combined monthly benefit you receive from the LTD plan and other sources of disability income will be 66 2/3% of your monthly earnings. LTD benefits begin after you have satisfied a 13 week waiting period. Benefits will be paid to you as long as you are totally disabled as set forth in the NRECA Group Benefits Plan Summary Plan Description. More detailed information on LTD benefits can be found in the Summary Plan Description of the NRECA Group Benefits Program, which you receive a copy of upon enrollment in the Group Benefits Plan. 5. Effective January 1, 2006, the section entitled LEAVES OF ABSENCE & DISABILITY, subsection entitled FAMILY AND MEDICAL LEAVE ACT POLICY, page is amended for all non-union employees to read as follows. FAMILY AND MEDICAL LEAVE ACT POLICY This policy outlines the conditions under which the Cooperative allows time off work to attend to certain family and medical needs. The Cooperative provides family and medical leave according to the Family and Medical Leave Act of 1993 (FMLA) and related state laws. FMLA requires employers to provide up to a total of 12 weeks of unpaid, job-protected leave during any 12-month period to eligible employees for certain family and medical reasons. This policy is intended to comply with the law, as well as any related state law, and its interpretation is governed by them. If the FMLA and state law conflict, the Cooperative provides leave according to the more generous law. Time off for any of the following reasons qualifies as family and medical leave and count toward the maximum 12 weeks of leave. Care of a child after birth. Care of a child after placement of that child with the employee for adoption or foster care. Care of the employee s spouse, child, or parent (but not a parent-in-law) who has a serious health condition. A serious health condition that makes the employee unable to work. To be eligible for FMLA benefits, all of the following must be true. The employee must work for a covered employer. The employee must have worked for the Cooperative for at least 12 months, not necessarily consecutive.

9 The employee must have worked at least 1,250 hours over the previous 12 month period immediately before the date of leave begins. The employee must work at a location where the Cooperative employs at least 50 Employees within a 75-mile radius. An eligible employee can take up to 12 weeks (480 hours) of FMLA leave during any 12 month period. The Cooperative will measure the 12 month period as a rolling 12 month period measured backward from the date the FMLA leave commences. The FMLA leave may be paid, unpaid, or a combination of paid and unpaid time and combined to count toward the maximum 12 weeks. If a husband and wife both work for the Cooperative and each wishes to take leave for the birth of a child, placement of a child in the home for adoption or foster care, or to care for a parent with a serious health condition, the husband and wife together may take only a total of 12 weeks of leave. The employee must provide advance notice and medical certification when requesting a leave. Taking of leave may be denied if requirements are not met. The employee ordinarily must provide 30 days advance notice when the leave is foreseeable. FMLA requests may be made on the Application of Family or Medical Leave form available from the Human Resources Department, or in writing. Employees must send to their immediate supervisor all requests for leave. Upon receipt, the supervisor will forward the request to the Human Resources Department for processing. All requests for leave must clearly state the reason for leave including anticipated start date and duration of leave. In an emergency or unforeseeable situation requests can be made verbally and followed in writing, if practical. The Human Resources Department will review the request, determine if the request qualifies for FMLA leave and issue a written response within two (2) business days, barring any extenuating circumstances. Qualifying leaves will be approved for a specified period of time. If circumstances prohibit the employee from returning to work at the end of the approved leave, the employee must request an extension at least 10 days before the end of the approved leave, if possible. All requests for an extension of leave should be made to the Human Resources Department. All periods of time off for FMLA leave apply towards the maximum 12 week leave period, regardless whether the employee specifically requests leave under this policy. The determination is made based on information the employee provides to their supervisor or the Human Resources Department.

10 The Cooperative requires medical certification to support a request for leave because of a serious health condition and may require a second or third opinion and a fitness for duty report to return to work. The employee must provide a "Medical Certification Statement" form for the illness of an employee's family member or the short-term Disability Claim Form" (STDC) form for the employee's own illness. Both of these forms can be obtained from the Human Resources Department. Completed forms are to be sent to the Human Resources Department prior to the requested leave, if foreseeable, or if not practical, within 15 days from the date of the Cooperative's request. If the employee does not provide medical certification within this time period, the leave will be denied until the proper certification is provided. The Cooperative may request a second opinion at the Cooperative's expense. The Cooperative selects a health care provider other than the Cooperative designated medical facility. If the second opinion differs from that of the employee's health care provider, the Cooperative may require a third opinion at the Cooperative's expense. The third opinion is binding. If the employee's health care provider does not provide an estimated return to work date for an extended disability, the employee must provide medical documentation of continued disability on a monthly basis. If the employee is unable to return to work on the estimated return to work date, the employee and health care provider must complete and return a supplemental Medical Certification Statement form or STDC form at least 10 days before the estimated return to work date, if possible. Under some circumstances, the employee may take FMLA leave on a intermittent or reduced schedule basis, which means taking a leave in blocks of time, or by reducing his or her weekly or daily work schedule. Intermittent or reduced schedule leave may be taken to care for a sick family member or for an employee's own serious health condition, when medically necessary. This type of leave is not granted for the birth of a child or placement of a child for adoption. The employee must provide, 30-days in advance of the situation, a written notice for a request of intermittent or reduced schedule leave along with medical certification. The Cooperative may temporarily assign the employee to an alternative position with equivalent pay and benefits that better accommodates the intermittent or reduced schedule leave. All time taken during an intermittent or reduced schedule leave will be counted towards the 12 week maximum.

11 For a serious health condition that makes the employee unable to work, the employee is required to use a minimum of 5 days (1 week) of accrued PTO leave before being eligible for short-term disability benefits, unless leave is due to a workers compensation injury or illness. All PTO leave will be added to STD short-term disability benefits and unpaid time off and apply towards the 12 week maximum. Example: If the employee requests 6 weeks FMLA leave for a serious health condition that prevents them from working and uses 5 days of PTO, the Employee will be paid for 5 days (1 week) of accrued PTO leave and 5 weeks of Short Term Disability. For the care of a child after birth; care of a child after placement of that child with the employee for adoption or foster care; or, for the care of the employee s spouse, child, or parent (but not a parent-inlaw) who has a serious health condition that employee is permitted to take as much PTO leave as they have accrued, however is not eligible for Short Term Disability Pay. Upon returning to work from FMLA leave, most employees must be restored to their original or equivalent position with equivalent pay, benefits and other employment terms. However, if the original job has been subject to reduction-in-force, return to work is not guaranteed. Key Employees have the same entitlement to leave as any other eligible employee, however, they are subject to limits on their rights to job restoration. The Cooperative may deny job restoration to a key employee in order to prevent substantial and grievous economic injury to the Cooperative s operations. The Cooperative will notify the employee in writing if the employee falls under this category as well as if job restoration is denied. The employee will be required to respond in writing to the Cooperative s notification. Before returning to work, the employee must submit to a drug and alcohol screen, if required by the Cooperative's drug and alcohol policy. A leave due to the serious health condition of the employee, requires the employee to present a written release to return to work signed by the treating physician before returning to work. An employee who rejects a job offer by the Cooperative or fails to return to work at the end of the approved leave without requesting an extension is deemed to have voluntarily terminated employment. The Group Benefits Plan will continue, on the same terms available to all other employees, during an approved FMLA leave. Benefits are subject to any changes that took place during the leave. If the employee chooses not to return from leave, under certain circumstances, the employee may be required to repay the Cooperative's portion of the health insurance premium payment made by the Cooperative during the leave. The Retirement and Security Program and 401(k) Pension Plan benefits will continue and are treated as continued service in vesting for the duration of the 12 weeks of FMLA leave, unless otherwise prohibited under separate plan summary descriptions. The Employee will only accrue additional benefits (such as PTO leave) or seniority during a qualifying unpaid FMLA leave to the same extent, if any, as these benefits or seniority are accrued for other unpaid leaves. However, if an Employee is on a Leave of Absence at the beginning of a calendar year when the accrual is made, that employee will not be eligible

12 to take the PTO leave until they have returned to Active Work, as described in the subsection entitled Paid Time Off Leave. Should a regularly scheduled salary review fall during the employee s FMLA leave, the review will be conducted as usual. Any approved change in pay rate will not be postponed. For the duration of the approved FMLA leave, the Cooperative will maintain the employee s health coverage. The Employee may continue the Plan benefits for himself or herself and his or her dependents on the same terms as if the employee had continued to work, including payment of the same contribution towards the cost of the coverage that he or she made while working. If the employee fails to make payment on a timely basis, the Cooperative, after giving written notice to the Employee, can end the coverage during the leave if payment is more than 30 days late. If a portion of the employee s FMLA leave is paid time off, the Cooperative will continue to deduct the same contributions deducted when the employee was working. If the employee is on FMLA leave that is unpaid, the employee should make the required contribution payment by one of the following options. The employee is required to make payment arrangements prior to the beginning of FMLA leave. Pre-payment through payroll deduction before the leave begins, or from the final paid leave payment. Pre-payment by check or money order. Monthly payments by check or money order by the first day of each month. If the employee s coverage(s) end while the employee is on FMLA leave, the coverage(s) will be reinstated on the later of. The date the employee returns to work from FMLA leave. The date the employee re-enrolls by filing a written request with the Cooperative to deduct the required contributions from his or her pay. The employee will not have to provide proof of insurability and any preexisting condition limitation, waiting period or non-confinement provision will be applied as if there had been no break in coverage provided the employee re-enrolls within 31 days from the date he or she returns to work. However, the employee will have to give proof of insurability prior to re-enrollment for any new benefit option or amount elected after the employee returns from FMLA leave. The coverage(s) to be reinstated are the benefits in effect prior to the FMLA leave and any new or increased benefits added to the Plan while the Employee is on FMLA leave.

13 Any employee who abuses or misuses this benefit by not following specified procedures, falsifying records, or the like, is subject to discipline up to and including termination of employment. Claims, disagreements, or disputes arising out of this policy are reviewed with the Employee, the supervisor and the Human Resources Department. If not resolved, the Human Resources Manager makes the final decision. This policy applies to the fullest extent required by the Family and Medical Leave Act of If the Cooperative is required by a state or the Federal government to adopt a different policy, the Cooperative will make the required changes effective for those Employees to which the particular law or regulation applies. The following definitions are established according to the FMLA and are subject to change without notice if the definitions in the Federal regulations change. If the definitions in the FMLA and the applicable state law conflict, the definition permitting the most generous leave benefit will apply. 1. Health care provider - doctor of medicine or osteopathy, podiatrist, dentist, psychologist, optometrist, chiropractor, nurse practitioner, or nurse midwife, authorized to practice in the state of practice and performing within the scope of practice as defined by state law. Christian Science practitioner listed with the First Church of Christ Scientist in Boston, Massachusetts. 2. Incapable of self-care - requiring active assistance or supervision to provide daily self-care in several of the activities of daily living (e.g. grooming and hygiene, bathing, dressing, eating, cooking, cleaning, shopping, taking public transportation, paying bills, maintaining a residence, using telephones and directories or post office, etc.) 3. Parent biological parent or individual who stands or stood in loco parentis to an associate child. Does not include parent-in-law. 4. Child - Biological, adopted, or foster child, stepchild, legal ward, or child of a person standing in loco parentis, who is under 18 years of age. Also includes a child 18 years of age or older who is incapable of self-care due to a physical or mental disability. 5. Spouse - husband or wife as recognized under the applicable state law, excluding common law spouses (if not recognized by the state) and domestic partners.

14 6. Physical or mental disability - a physical or mental impairment that substantially limits one or more of the major life activities of an individual such as caring for oneself, performing manual tasks, walking, seeing, hearing, speaking, breathing, learning, or working. Approved By: 7. Serious health condition - illness, injury, impairment or physical or mental condition resulting in one of the following criteria: Inpatient care in a hospital, hospice, or residential medical facility; or Continuing treatment by a health care provider for serious health condition include the following: a period of incapacity if more than three consecutive calendar days and any subsequent treatment of period of incapacity relating to the same condition, that also involves treatment two or more times by a health care provider; treatment by a health care provider on at least one occasion which results in a regiment of continuing treatment; or a period of incapacity due to pregnancy, or for prenatal care; or a period of incapacity or treatment for a chronicle serious health condition which requires periodic visits for treatment by a health care provider, continues over an extended period, and may cause episodic rather than a continuing period of incapacity; or a period of incapacity which is permanent or long-term due to a condition for which treatment may not be effective. The Employee or qualifying family member need not be receiving active treatment by a health care provider; or a period of absence to receive multiple treatments for an injury or condition which would result in incapacitation of more than three days if not treated (i.e. cancer, kidney disease, etc.). 8. Key-paid Employees - salaried Employees among the highest paid 10 percent of all Employees- both hourly-paid and salaried, eligible and ineligible - employed by the Cooperative within 75 miles of the Employee's work site. December 7, 2005 David L. Potter Date President and CEO

15 THIRD AMENDMENT.doc

16 FIFTH AMENDMENT TO THE ENERGY COOPERATIVE EMPLOYEE HANDBOOK WHEREAS, effective January 1, 2003, The Energy Cooperative introduced the Employee Handbook (the Handbook ). WHEREAS, it is necessary to amend said Handbook. NOW, THEREFORE, said Handbook is amended for all Union employees as follows: 1. Effective January 1, 2008, the section entitled BENEFITS, subsection entitled VACATION, pages 45-47, is deleted in its entirety for all Union employees. 2. Effective January 1, 2008, the section entitled BENEFITS, is amended for all Union Employees to add a subsection entitled PAID TIME OFF (PTO) LEAVE. Subsection entitled PAID TIME OFF LEAVE (PTO) reads as follows. PAID TIME OFF LEAVE (PTO) All full-time, Union employees who have competed at least 3 months of employment are eligible to begin accruing Paid Time Off Leave (PTO). PTO can be used for vacation, personal time, medical or dental appointments, illness, time off to care for dependents, or any other personal need. PTO Accrual: The amount of PTO available is based on your length of service according to the following schedule. PTO hours are available on January 1 of each calendar year. For purposes of this subsection, day(s) means 8 hours. Paid Time Off Leave Completed Years of Service 40 Hours (5 days) First (1 st ) calendar year of employment, hired July 1 through December Hours (9 days) First (1 st ) calendar year of employment, hired January 1 through June Hours (17 days) Second (2 nd ) calendar year of employment 176 Hours (22 days) Seventh (7 th ) calendar year of employment 216 Hours (27 days) Fifteenth (15 th ) calendar year of employment 256 Hours (32 days) Twenty Fifth (25 th ) calendar year of employment

17 Years of service are based on your year of hire. For example, if you were hired in the year 2005, your first year of service would be All PTO time is earned after the completion of 3 months of service. Earned PTO leave time is to be taken within the calendar year (January 1 through December 31). The following are examples of how PTO leave is accrued: 1. Employee was hired full-time on After the employee has completed 3 months of service, their PTO eligibility is as follows: First year of employment Year 2005: 72 hours / 9 days Second year of employment Year 2006: 136 hours / 17 days Seventh year of employment - Year 2011: 176 hours / 22 days Fifteenth year of employment - Year 2019: 216 hours / 27 days Twenty Fifth year of employment - Year 2029: 256 hours / 32 days 2. Employee was hired full-time on After the employee has completed 3 months of service, their PTO eligibility is as follows: First year of employment Year 2005: 40 hours / 5 days Second year of employment Year 2006: 136 hours / 17 days Seventh year of employment - Year 2011: 176 hours / 22 days Fifteenth year of employment - Year 2019: 216 hours / 27 days Twenty Fifth year of employment - Year 2029: 256 hours / 32 days Use of Scheduled PTO Leave: All requests for PTO must be approved well in advance by your department supervisor. PTO may be scheduled at any time during the calendar year and is granted on a first come, first serve basis. However, there may be times when a PTO request cannot be approved due to the needs of the department or Cooperative. Except in the case of illness or emergency, no employee will be permitted to take PTO that was not previously approved by the department supervisor. If a Cooperative observed holiday falls during your scheduled PTO you will be paid for the holiday rather than having to use PTO. Use of Unscheduled PTO: Request for the use of unscheduled PTO leave, such as for sudden illness or emergencies, must be directed to your immediate supervisor, by you, no later than the start of your normal reporting time. Should your supervisor be unavailable, you must leave a message on your supervisor s voice mail or cell phone. If you are physically incapable of notifying your supervisor, you must have someone else give notification for you. Failure to notify your supervisor will result in disciplinary action up to and including termination of your employment. If you take PTO for 5 consecutive calendar days, you may be eligible for Short- Term Disability. If you take 5 or more consecutive PTO days for illness, you must notify the Human Resources department immediately to obtain the proper paperwork to file for Short-Term Disability benefits. Failure to due so will result in an interruption in your pay. Short-Term Disability will not be paid without the proper approval of a completed

18 Short-Term Disability Claim Form. Short-Term Disability is described further in the next section of this Amendment. Payment of PTO: PTO is paid at your regular rate of pay. All requests for payment of approved PTO should be indicated on your bi-weekly timesheet. Carry Over: A maximum of 10 days (80 hours) of PTO can be carried over to the next calendar year. Any PTO in excess of 10 days (80 hours) at the end of the calendar year will be lost. Under no circumstances will any employee be permitted to carry over more than 10 days (80 hours) of PTO from year to year. In addition, PTO will not be paid out in lieu of PTO not taken, unless specifically outlined otherwise in this subsection. Change in Status: If you have a change in status (i.e., change to part-time status) which makes you no longer eligible for PTO, you will be paid for all eligible unused PTO on the effective date of the change. Break in Service: If you incur a break in service, such as terminate employment and then rehire at a later date, your PTO eligibility will start over as if you were newly hired. Leave of Absence: You may be eligible to accrue PTO while you are on certain approved leaves of absence, such as military leave. You will be notified by Human Resources of your eligibility to continue to accrue PTO leave at your time of leave. Under most circumstances, however, if you are on a leave other than Military that extends beyond twelve (12) months, you will not accrue additional PTO and if you have not returned to active work, your employment with the Cooperative will be terminated. Termination of Employment: If you terminate employment prior to using your earned PTO for that calendar year you will be paid for all eligible unused PTO. If you terminate employment prior to completing 3 months of service, no PTO will be paid. Retirement: If you retire in accordance with the Cooperative s IRS Qualified Retirement Plan guidelines, you will be paid for all eligible unused PTO leave for that calendar year. 3. Effective January 1, 2008, the section entitled LEAVES OF ABSENCE & DISABILITY, subsection entitled DISABILITY, pages is amended for all Union employees to read as follows. DISABILITY LEAVE The problems of an illness can be seriously increased if you are faced with the loss of your income. For that reason, the Cooperative has established a disability benefit to provide you with a source of continued income during this time. Full-time, Union employees with at least 3 months of service are eligible for participation in the disability program. The disability program consists of three parts:

19 Paid Time Off Leave, Short Term Disability, and Long Term Disability. The Cooperative pays the entire cost of the Paid Time Off Leave plan. Paid Time Off Leave is described in the previous section of this Amendment. Short-and-Long Term Disability benefits are provided only if you enroll in the Group Benefits Plan. Short-Term Disability As a full-time, Union employee who is enrolled in the Group Benefits Plan and has completed at least 3 months of employment, you may be eligible for Short-Term Disability (STD) pay in the event of a disability that prevents you from working. Benefits become payable after satisfying the waiting period below provided you are totally disabled and under the care of a physician. The waiting period for commencement of STD benefit to be payable is as follows: Accident: Sickness: 0 days 5 days Payment of STD: Once you have satisfied the above waiting period and exhausted up to 5 Workdays of PTO Leave (if available and as necessary to cover the waiting period), STD income will provide you a benefit of 100% of your base pay per regularly scheduled Workday. STD may continue for up to a maximum of 13 weeks provided you are totally disabled as certified by your physician and have completed the necessary paperwork to file for this benefit. STD benefits are subject to appropriate tax withholdings and any scheduled deductions you have established. For purposes of this section, the term Workday means any one of 5 days which the Employee is or would be, but for his or her disability, regularly scheduled to work. A Workday consists of 8 hours each calendar day. There are certain circumstances and exclusions in which STD benefits are not payable. For more detailed information on STD benefits, please refer to your Group Benefits Plan Summary Plan Description. Long-Term Disability The long-term disability plan is designed to provide you with income during periods that you may be unable to work due to accidents or sickness. To be eligible for long-term disability (LTD) benefits, you must meet certain conditions. As a full-time employee, actively enrolled in the Group Benefits Plan, you may be eligible for LTD benefits should you become disabled. LTD benefits pay you 66 2/3% of your regular monthly earnings up to a maximum monthly benefit of $15,000. The minimum monthly benefit is $65. This benefit may be reduced by other certain benefits to which you may be entitled to such as Workers Compensation Benefits, Social Security Benefits, Benefits from other Federal, State, or Employer Sponsored Plans. This

20 means that the total combined monthly benefit you receive from the LTD plan and other sources of disability income will be 66 2/3% of your monthly earnings. LTD benefits begin after you have satisfied a 13 week waiting period. Benefits will be paid to you as long as you are totally disabled as set forth in the NRECA Group Benefits Plan Summary Plan Description. More detailed information on LTD benefits can be found in the Summary Plan Description of the NRECA Group Benefits Program, which you receive a copy of upon enrollment in the Group Benefits Plan. 4. Effective January 1, 2008, the section entitled LEAVES OF ABSENCE & DISABILITY, subsection entitled FAMILY AND MEDICAL LEAVE ACT POLICY, page is amended for all Union employees to read as follows. FAMILY AND MEDICAL LEAVE ACT POLICY This policy outlines the conditions under which the Cooperative allows time off work to attend to certain family and medical needs. The Cooperative provides family and medical leave according to the Family and Medical Leave Act of 1993 (FMLA) and related state laws. FMLA requires employers to provide up to a total of 12 weeks of unpaid, job-protected leave during any 12-month period to eligible employees for certain family and medical reasons. This policy is intended to comply with the law, as well as any related state law, and its interpretation is governed by them. If the FMLA and state law conflict, the Cooperative provides leave according to the more generous law. Time off for any of the following reasons qualifies as family and medical leave and count toward the maximum 12 weeks of leave. Care of a child after birth. Care of a child after placement of that child with the employee for adoption or foster care. Care of the employee s spouse, child, or parent (but not a parent-in-law) who has a serious health condition. A serious health condition that makes the employee unable to work. To be eligible for FMLA benefits, all of the following must be true. The employee must work for a covered employer. The employee must have worked for the Cooperative for at least 12 months, not necessarily consecutive.

21 The employee must have worked at least 1,250 hours over the previous 12 month period immediately before the date of leave begins. The employee must work at a location where the Cooperative employs at least 50 Employees within a 75-mile radius. An eligible employee can take up to 12 weeks (480 hours) of FMLA leave during any 12 month period. The Cooperative will measure the 12 month period as a rolling 12 month period measured backward from the date the FMLA leave commences. The FMLA leave may be paid, unpaid, or a combination of paid and unpaid time and combined to count toward the maximum 12 weeks. If a husband and wife both work for the Cooperative and each wishes to take leave for the birth of a child, placement of a child in the home for adoption or foster care, or to care for a parent with a serious health condition, the husband and wife together may take only a total of 12 weeks of leave. The employee must provide advance notice and medical certification when requesting a leave. Taking of leave may be denied if requirements are not met. The employee ordinarily must provide 30 days advance notice when the leave is foreseeable. FMLA requests may be made on the Application of Family or Medical Leave form available from the Human Resources Department, or in writing. Employees must send to their immediate supervisor all requests for leave. Upon receipt, the supervisor will forward the request to the Human Resources Department for processing. All requests for leave must clearly state the reason for leave including anticipated start date and duration of leave. In an emergency or unforeseeable situation requests can be made verbally and followed in writing, if practical. The Human Resources Department will review the request, determine if the request qualifies for FMLA leave and issue a written response within two (2) business days, barring any extenuating circumstances. Qualifying leaves will be approved for a specified period of time. If circumstances prohibit the employee from returning to work at the end of the approved leave, the employee must request an extension at least 10 days before the end of the approved leave, if possible. All requests for an extension of leave should be made to the Human Resources Department. All periods of time off for FMLA leave apply towards the maximum 12 week leave period, regardless whether the employee specifically requests leave under this policy. The determination is made based on information the employee provides to their supervisor or the Human Resources Department.

22 The Cooperative requires medical certification to support a request for leave because of a serious health condition and may require a second or third opinion and a fitness for duty report to return to work. The employee must provide a "Medical Certification Statement" form for the illness of an employee's family member or the short-term Disability Claim Form" (STDC) form for the employee's own illness. Both of these forms can be obtained from the Human Resources Department. Completed forms are to be sent to the Human Resources Department prior to the requested leave, if foreseeable, or if not practical, within 15 days from the date of the Cooperative's request. If the employee does not provide medical certification within this time period, the leave will be denied until the proper certification is provided. The Cooperative may request a second opinion at the Cooperative's expense. The Cooperative selects a health care provider other than the Cooperative designated medical facility. If the second opinion differs from that of the employee's health care provider, the Cooperative may require a third opinion at the Cooperative's expense. The third opinion is binding. If the employee's health care provider does not provide an estimated return to work date for an extended disability, the employee must provide medical documentation of continued disability on a monthly basis. If the employee is unable to return to work on the estimated return to work date, the employee and health care provider must complete and return a supplemental Medical Certification Statement form or STDC form at least 10 days before the estimated return to work date, if possible. Under some circumstances, the employee may take FMLA leave on a intermittent or reduced schedule basis, which means taking a leave in blocks of time, or by reducing his or her weekly or daily work schedule. Intermittent or reduced schedule leave may be taken to care for a sick family member or for an employee's own serious health condition, when medically necessary. This type of leave is not granted for the birth of a child or placement of a child for adoption. The employee must provide, 30-days in advance of the situation, a written notice for a request of intermittent or reduced schedule leave along with medical certification. The Cooperative may temporarily assign the employee to an alternative position with equivalent pay and benefits that better accommodates the intermittent or reduced schedule leave. All time taken during an intermittent or reduced schedule leave will be counted towards the 12 week maximum.

23 For a serious health condition that makes the employee unable to work, the employee is required to use a minimum of 5 days (1 week) of accrued PTO leave before being eligible for short-term disability benefits, unless leave is due to a workers compensation injury or illness. All PTO leave will be added to STD short-term disability benefits and unpaid time off and apply towards the 12 week maximum. Example: If the employee requests 6 weeks FMLA leave for a serious health condition that prevents them from working and uses 5 days of PTO, the Employee will be paid for 5 days (1 week) of accrued PTO leave and 5 weeks of Short Term Disability. For the care of a child after birth; care of a child after placement of that child with the employee for adoption or foster care; or, for the care of the employee s spouse, child, or parent (but not a parent-inlaw) who has a serious health condition that employee is permitted to take as much PTO leave as they have accrued, however is not eligible for Short Term Disability Pay. Upon returning to work from FMLA leave, most employees must be restored to their original or equivalent position with equivalent pay, benefits and other employment terms. However, if the original job has been subject to reduction-in-force, return to work is not guaranteed. Key Employees have the same entitlement to leave as any other eligible employee, however, they are subject to limits on their rights to job restoration. The Cooperative may deny job restoration to a key employee in order to prevent substantial and grievous economic injury to the Cooperative s operations. The Cooperative will notify the employee in writing if the employee falls under this category as well as if job restoration is denied. The employee will be required to respond in writing to the Cooperative s notification. Before returning to work, the employee must submit to a drug and alcohol screen, if required by the Cooperative's drug and alcohol policy. A leave due to the serious health condition of the employee, requires the employee to present a written release to return to work signed by the treating physician before returning to work. An employee who rejects a job offer by the Cooperative or fails to return to work at the end of the approved leave without requesting an extension is deemed to have voluntarily terminated employment. The Group Benefits Plan will continue, on the same terms available to all other employees, during an approved FMLA leave. Benefits are subject to any changes that took place during the leave. If the employee chooses not to return from leave, under certain circumstances, the employee may be required to repay the Cooperative's portion of the health insurance premium payment made by the Cooperative during the leave. The Retirement and Security Program and 401(k) Pension Plan benefits will continue and are treated as continued service in vesting for the duration of the 12 weeks of FMLA leave, unless otherwise prohibited under separate plan summary descriptions. The Employee will only accrue additional benefits (such as PTO leave) or seniority during a qualifying unpaid FMLA leave to the same extent, if any, as these benefits or seniority are accrued for other unpaid leaves. However, if an Employee is on a Leave of Absence at the beginning of a calendar year when the accrual is made, that employee will not be eligible