EMPLOYEE HANDBOOK 2013

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TABLE OF CONTENTS Welcome .................................................................................................................................... 3 What We Believe ....................................................................................................................... 4 Our Mission ...................................................................................................................... 4 5 Star Operations ........................................................................................................................ 5 Who We Are .............................................................................................................................. 5 Introduction ...................................................................................................................... 5 Employment at Will ......................................................................................................... 5 Equal Employment Opportunity Employer ...................................................................... 6 Immigration Compliance .................................................................................................. 6 National Labor Relations Act ........................................................................................... 6 The Team ................................................................................................................................... 6 Employee Classifications ................................................................................................. 6 How We Do Business ................................................................................................................ 7 Team Member Code of Conduct ...................................................................................... 7 Zero Tolerance for Harassment, Discrimination, Inappropriate Conduct ........................ 7 Sexual Harassment ..................................................................................................... 8 Other Forms of Harassment ....................................................................................... 9 Internal Reporting Procedure ........................................................................................... 9 Day To Day .............................................................................................................................. 10 Work Schedules .............................................................................................................. 10 Attendance, Dependability and Punctuality ................................................................... 10 Timekeeping Requirements ............................................................................................ 11 Breaks and Meal Periods ................................................................................................ 11 Team Member Belongings Policy .................................................................................. 12 Visitors ........................................................................................................................... 12 Fraternization Policy ...................................................................................................... 12 Employment of Relatives ............................................................................................... 13 Appearance Standards .................................................................................................... 13 Appearance Guidelines – Back of House ................................................................ 15 Appearance Guidelines – Managers ........................................................................ 15 Tobacco Policy ............................................................................................................... 15 Compensation ................................................................................................................. 16 Workplace Leaves & Benefits ................................................................................................. 17 Benefit’s Overview......................................................................................................... 17 Types of Leave ............................................................................................................... 17 Time off / Vacation ........................................................................................................ 19 Workplace Guidelines .............................................................................................................. 20 Data Integrity and Use of Business Systems .................................................................. 20 Cell Phone, Tablets, and Other Communication Devices .............................................. 20 Public Information / New Media Inquiries..................................................................... 20 Social Media Guidelines ................................................................................................ 20 PCI* & Data Security: Hourly Team Members ............................................................ 21 Page 1 August 2013

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PCI* & Data Security: Restaurant Managers ................................................................ 22 Safety and Security .................................................................................................................. 22 Substance-Free Work Environment ............................................................................... 23 Workplace Safety ........................................................................................................... 24 Violence in the Workplace ............................................................................................. 25 Environmental Safety ..................................................................................................... 25 Performance Management ....................................................................................................... 26 Discretionary Progressive Discipline ............................................................................. 26 Separation of Employment ............................................................................................. 29

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Page 2 August 2013

Welcome Welcome to Apple Central, LLC! We are one of the casual dining industry’s fastest growing Applebee’s franchisees and are pleased to have you join our team. To continue our success, we must recruit and hire the most talented individuals available. We are deliberate in our selection process because we recognize that our Team Members are the embodiment of brands to our restaurant guests and other Company Team Members. We believe that in order to do your best work, we must do ours by providing you with policies that promote a respectful, diverse and productive workplace. You play an important role in our success, as part of a culture that empowers you to use your skills, talents and resources in collaborative and creative ways to help us achieve our strategic goals. This Handbook is designed to be a quickreference guide that summarizes what you need to know to help make your career productive and enjoyable. We are happy you have joined our team!

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What We Believe Apple Central, LLC’s (The Company), m i s s i o n s t a t e m e n t a n d values provide direction to our T e a m M e m b e r s wherever they work. We are committed to the development and advancement of our Team Members and we strive to create and maintain an inclusive environment where all Team Members feel challenged, appreciated and welcome. It is important that you know and understand our mission, our values and your role as you work each day to provide exceptional hospitality to each and every guest.

At Apple Central, our mission is to win every guest every day by delivering exceptional hospitality, through quality teamwork embedded in a culture of best effort.

Exceptional Hospitality Food Is Our Passion Fresh, Quality Ingredients Relevant Menus Exceptional Price Value Relationship Perfect Plate Presentation Perfect Drink Presentations

Service Is Our Difference

Friends Make Up Our Community

Passionate Emloyees Serving Passionate Guests

Every Team Member Lives Our Mission

Polished Appearance

Say Something Nice to Your Fellow Employees Every Day

Quality Teamwork

Best Effort

Team

Quality

Communication Individuality

Decision Speed

Self-Respect Honesty

Focus

Trust Acknowledge, Greet & Thank Own Complaints No Negotiation/ The Guest Is Right

Celebrate Success

Humility

Professionalism

Fun Have Fun

Positive Attitude

Risk-Taking

Community Service Immediate Responsibility for Clean & Safe Restaurants

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Respect Believe

Persistency

5 STAR OPERATIONS We want your job experience to be rewarding and enjoyable. We believe in treating our guests and one another with respect. The following 5 Star Operations are how we conduct business every day.

v v v v v

Hiring quality people that demonstrate our values Deliver comprehensive employee training Deliver exceptional hospitality (food, service, and friends) Focus, forecast and plan our business Execute our plans and deliver results

Who We Are

This Team Member Handbook is provided to summarize important information related to your employment. Unless otherwise specified, the term Team Member refers to part-time, hourly restaurant employees and full-time, salaried restaurant Managers. It is a summary of policies, procedures, and work rules and how they affect you. At the end of this Handbook, you will find the Company’s Code of Conduct, which sets forth the fundamental principles and key policies and procedures that govern the way we conduct our business. Please read this Handbook along with the Code of Conduct very carefully. If you have any questions about any of the Company’s policies, or any other inquiry, please contact your Manager or Human Resources. The Company reserves the right to change, modify, eliminate or deviate from any policy or procedure in this Handbook at any time, with or without notice, with the exception of the employment at-will provisions. It is your responsibility to stay current on policy updates and modifications.

THIS TEAM MEMBER HANDBOOK IS NOT A CONTRACT OF EMPLOYMENT. THE RELATIONSHIP BETWEEN THE COMPANY AND YOU IS AN EMPLOYMENT-AT-WILL RELATIONSHIP, WHICH MEANS THAT THE EMPLOYMENT RELATIONSHIP IS BY MUTUAL CONSENT BETWEEN THE COMPANY AND YOU. THE EMPLOYMENT RELATIONSHIP IS NOT FOR ANY DEFINITE PERIOD OF TIME AND EITHER YOU OR THE COMPANY MAY TERMINATE THE EMPLOYMENT RELATIONSHIP AT ANY TIME WITH OR WITHOUT NOTICE, FOR ANY REASON OR NO REASON AT ALL, AND WITH OR WITHOUT CAUSE.

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Apple Central, LLC is an equal opportunity employer and is dedicated to complying with all applicable laws prohibiting discrimination. The Company will recruit and hire applicants without regard to race, color, national origin, religion, sex, age, disability, marital status, sexual orientation, veteran status or any other basis prohibited by law. We comply with the requirements of The Americans with Disabilities Act Amendments Act of 2008 (ADAAA). If you find that you need a reasonable accommodation under the ADAAA, you should contact Human Resources for further guidance.

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We comply with the requirements of the Immigration Reform & Control Act of 1986, including Form 1-9 requirements, and all applicable requirements of state law regarding worker documentation.

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Nothing in this handbook, nor the policies contained or described herein, is intended to infringe on the rights of employees under section 7 of the National Labor Relations Act.

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The Team

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For purposes of payroll administration, eligibility for overtime payment and employment benefits, the Company classifies its employees as follows: Exempt Managers: A Team Member classified on the Company’s payroll system as an Exempt Manager is defined as an employee that holds a salaried management position and works solely in a management role. A Manager’s weekly hours will generally exceed 45 hours per week. Essential Hourly Team Members: An hourly Team Member who is hired or promoted to an essential position will generally work between 35 and 39 hours per week. Upon occasion, the Essential Hourly Team Member may work greater than 40 hours per week and will receive compensation at the rate of time and a half for any hours worked above 40 hours within a payroll week.

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Variable Hourly Team Members: An hourly Team Member classified on the Company’s payroll system as a variable hourly employee who is eligible for overtime as defined by the federal and state labor guidelines. A variable hourly employee will generally work less than 25 hours per week, however may temporarily work greater than 25 hours per week when business demands due to seasonality or scheduling needs.

How We Do Business

Obeying both the letter and the spirit of the law is one of the foundations of Apple Central, LLC’s ethical standards. It is Apple Central’s policy to comply with all applicable laws, rules and regulations. All Apple Central, Team Members are to conduct their business affairs with honesty, integrity and good judgment. Team members have a business responsibility to work in the best interest of Apple Central. Conflicts between the best interest of Apple Central and Team Members’ personal relationships and interest must be avoided. You must disclose in writing, any personal business or other relationship that could potentially affect your business judgment. Potential conflicts of interest include but are not limited to: v Maintaining employment with an Apple Central competitor while employed by Apple Central. v Having a member of your immediate family employed by a supplier, customer, or competitor of Apple Central. v Soliciting or accepting money or goods for your personal benefit in any amount from a current or potential supplier customer, or competitor of Apple Central. v Accepting entertainment, meals, gifts, discounts, services, transportation, or any other personal benefit or favor from a current or would-be supplier, customer or competitor of Apple Central outside of authorized criteria and/ or programs.

The Company is committed to maintaining a safe, harassment and discrimination free work environment in which employees at all levels of the Company are able to devote their full attention and best efforts to their jobs. Harassment, discrimination or other inappropriate conduct, whether intentional or unintentional, has no place at Apple Central. Every member of Apple Central’s management is responsible for creating a safe atmosphere free of harassment, sexual or otherwise. It is the responsibility of every Manager to immediately stop any inappropriate behaviors they observe and to report such behavior to Human Resources.

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This policy applies and is enforced equally to conduct occurring in, but not limited to Apple Central’s restaurants, property, business meetings, business trips, and / or business-related social events. This policy applies to all Team Members, including all Managerial and supervisory Team Members, as well as independent contractors, applicants, outside vendors, guests, or any other individual conducting business with Apple Central. Prohibited Conduct Apple Central expressly prohibits any form of employee harassment, discrimination or other inappropriate conduct based on the following: Age Disability Marital Status Family Status Race Sexual Orientation

Color Gender National Origin Religion Veteran or Military Status Any other basis proscribed by applicable law

Any conduct, whether verbal, physical, or visual that may create a hostile, offensive or intimidating work environment is prohibited under this policy. Harassment may include, but is not limited to the following: (1) Sexual Harassment The law defines sexual harassment as unwanted sexual advances, requests for sexual favors or visual, verbal or physical conduct of a sexual nature when: v Submission to such conduct is made a term or condition of employment. v Submission to or rejection of such conduct is used as the basis for employment decisions affecting the individual. v Such conduct has the purpose or effect of unreasonably interfering with a Team Member’s work performance or creating an intimidating, hostile or offensive working environment. This definition includes many forms of offensive behavior. The following is a partial list of unacceptable conduct that is prohibited by this policy to serve as examples: Asking for dates where it is clear, or becomes clear, that the request is unwelcome. Unwanted sexual advances. Offering employment benefits in exchange for sexual favors. Making or threatening reprisals after a negative response to sexual advances. Visual conduct such as leering, making sexual gestures, displaying of sexually suggestive objects or pictures, cartoons or posters. v Improper language such as making or using derogatory comments, epithets, slurs, sexually explicit jokes, inappropriate or unwelcome comments about a Team Member’s body or dress, graphic verbal commentary about an individual’s body, sexually degrading words to describe an individual, suggestive or obscene letters, notes or invitations. v Unwanted verbal sexual advances or propositions. v v v v v

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v Conduct of an overtly sexual or obscene sexual nature at Company sponsored parties or events. v Unwanted physical conduct of a sexual nature such as touching, assault, impeding or blocking movements. v Emails, text-messages and other forms of electronic communication that contain inappropriate and/or sexual language, pictures, messages. v Retaliation for (1) reporting conduct prohibited by this policy; or (2) threatening to report conduct prohibited by this policy. (2) Other Forms of Harassment Unacceptable conduct includes many forms of offensive behavior. The following is a partial list of unacceptable conduct that is prohibited by this policy: v Mimicking or mocking a Team Member’s personal attributes based on the Team Member’s protected status. v Jokes, written or verbal, that are derogatory about one’s protected status. v Cartoons or pictures that are negative or offensive about protected status, such as national origin or race. v Comments or conduct that is offensive based on one’s protected status, such as disability or age. v Emails, text messages, or other forms of electronic communication that contain inappropriate material about protected status, including race, color, national origin, religion. v Retaliation for: (1) reporting conduct prohibited by this policy; or (2) threatening to report conduct prohibited by this policy. Internal Reporting Procedure If you feel you have been subjected to conduct that is inconsistent with this policy or that otherwise may constitute discrimination, harassment, or retaliation, or have witnessed any conduct that you believe to be inconsistent with this policy, you must immediately report it to the attention of your General Manager/Area Director, or Human Resources. You may contact Human Resources through our [email protected] email address. Complaints will be investigated and resolved in a timely and thorough manner. Appropriate corrective action will also be taken, as deemed appropriate under the circumstances, at the Company's sole discretion. Every effort will be made to protect the confidentiality of an investigation to the extent reasonably possible. The Company will also take action, deemed necessary and appropriate, to reduce the possibility of any prohibited conduct occurring in the future.

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Day to Day

Hourly Team Members Schedules are posted weekly. Hourly T e a m M e m b e r s are expected to report to work on time. Team Members who wish to change their schedule, and find another Team Member to work for them, may request a change of schedule with your Manager’s permission. If you need time off, you must request the time off by following the restaurant’s schedule request process. Salaried Managers Management work schedules are posted monthly. Our goal is to provide ample time for planning and flexibility for personal needs. While the number of hours and days required to be worked by each Team Member may vary from time to time based on a number of factors such as workload, business demands, and operational needs, Restaurant Managers, on average, often will work 5 days per week consisting of 50-60 hours. Additionally, it is our goal that the management team works together to schedule a variety of shifts which rotate day parts, weekends and holidays. Schedule requests should be made in advance to the General Manager. If a Manager needs a schedule change, they should work with the team to make necessary changes. If you are sick or otherwise unable to make a scheduled shift, you must find a replacement. If you are unable to find a replacement, you must notify your General Manager and Area Director at least 8 hours prior to your shift. If there is an unresolved scheduling issue or an open shift, notify the General Manager and/ or Area Director immediately for assistance.

In order for the business to run efficiently, we need all of our Team Members to be dependable, reliable and flexible. When you are unable to report for your shift, it creates a hardship on your fellow Team Members and can negatively impact our guest’s experience. You are expected to report for your shift in uniform, ready to work at your designated shift start time. If you will be eating prior to your shift, you must be completed with your meal and ready to begin your duties at your assigned shift start time. In the event that you cannot report to work for a scheduled shift, you are expected to follow the guidelines listed below:

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Absence Reporting Hourly Team Members, who are sick or otherwise unable to work their scheduled shift, must find another Team Member to fill the shift. The Team Member is responsible for notifying a Manager as soon as possible about the absence and replacement. If an illness is serious or a replacement cannot be found, Team Members are personally expected to calloff as soon as possible and no less than 4 hours prior to the start of the shift.

Unexcused Absences A Team Member’s failure to call-in and report to work is considered a no-call, no-show. Any no-call, no-show s h i f t may be considered job abandonment and may be grounds for termination. Team M embers who fail to call in advance of shift (unless there’s an emergency), mishandle schedule changes that result in an open shift, or cause other absence related situations may also be considered an unexcused absence. Any unexcused absence will result in corrective action at Company’s sole discretion, including up to termination of employment.

Hourly Team Members must properly clock in and out at every shift and must clock in for all hours worked. Team Members may not work off the clock, before or after a shift for any reason. You should never clock in or out for another Team Member. Please see your Manager for specific time clock procedures. Hourly Team Members may be required to work overtime on occasion. Any overtime work must be pre-approved by your A rea D irector. If overtime is worked without prior approval, the time will be paid but the failure to obtain prior approval may result in corrective action at Company’s sole discretion. Overtime pay is paid for hours worked in excess of 40 hours per week, or as otherwise required by applicable law.

Rest and meal breaks will be scheduled and paid according to applicable state and federal laws and any nursing mothers will be afforded time to express milk as required by law. Please discuss your restaurant’s state specific laws regarding breaks and meal periods with your Manager.

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Meals Program We offer hourly Team Members discounted meals, excluding alcohol, up to an hour before and after a scheduled shift. Team Members are required to order and eat the meals under the program at the restaurant and all meals must be properly rung up and documented, just like anyone else’s. All team Members must give their order to the Bartender or Manager, who will ring in the order. Failure to have your meals properly rung into the system may be grounds for disciplinary action. All meals must be eaten while the Team Member is “off the clock” and must be eaten in the designated area within the restaurant. You should not eat your meals while performing your work duties. This meal cannot be a “to-go” order. Your Manager will show you where you can eat and when, as well answer any other questions. The meal program may change at any time at the discretion of the Chief Operating Officer.

Team Members may not remove Company property or the personal property of another employee and/ or guest without written authorization of the Company, employee or guest. We reserve the right to conduct lawful searches of any person, vehicle or object that enters onto Company property; buildings and parking lots. Searches may be conducted by Company management or local authorities, as appropriate under the circumstances.

To promote the safety and security of Team Members, visitors (friends and/ or family) should only be allowed in the restaurant on a minimal basis; such as while waiting to give you a ride home. Visitors are only allowed in the restaurant during business hours. This helps to maintain safety standards and reduce potential distractions and disturbances. If you have a visitor onsite, you are responsible for their conduct. In order to maintain safety and security in the restaurant, visitors are not permitted in areas that are not open to the general public.

Apple Central encourages positive working relationships among its Team Members, as these relationships can improve communication and trust between Managers and Team Members. It is important to remember that all activities should be conducted in a professional manner and should not lead to perception of favoritism or create morale issues within the restaurant. At no time should a Manager and a Team Member engage in a dating relationship, reside in the same residence, or violate any of Apple Central’s professional conduct guidelines.

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Apple Central permits family members to seek employment opportunities with the Company; however, at no time should one family member be in direct supervision of another family member. This policy applies to immediate and extended family members. If two family members are employed and one is promoted to a supervisory position, one family member must transfer locations or separate from the Company.

You represent Apple Central to our guest, other visitors, and your coworkers. Your appearance reflects the pride you have in the Company and your work. The following guidelines apply to all positions within our restaurants. Position specific guidelines are also provided in this section. If you have any questions regarding these dress guidelines, please contact your General Manager or Area Director of Human Resources. Grooming Good personal hygiene is a necessity. Team Members must arrive at work free from body odor, hair clean and styled and ready to make a great first impression on our guests. All clothing should be clean and wrinkle-free. Hair Hair must be clean and styled. If hair is longer than collar length, pull it back or put it up. Facial hair (beards, mustaches, and sideburns) should be neat and trimmed. Shoes Apple Central requires non-slip shoes for all Team Members, including Restaurant Managers. Shoes need to be: v Non-slip. v Black. v Closed toe. v Boots, high heels, sandals, sling back, flip flops, tennis shoes and moccasins are not safe for restaurant work. Jewelry At all times, you should consider your safety and the safety of your coworkers and guests when wearing jewelry in the restaurant. The following guidelines are intended to allow for individual style while maintain safety: v One ring per hand. v A short necklace is acceptable. v Earrings are acceptable. They should be a matched set and no more than two earrings per ear and should be relatively small/short. v A small stud in the nose or tongue is acceptable. Additional piercings should be removed while at work.

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Tattoos Tattoos are acceptable as long as they are in good taste for the average, every day person in your Neighborhood. Tattoos may not be visible on the face, neck, hands, and must be minimal in size. (No sleeves). Wearing long sleeves or clean/color coordinated wrist bands are a suitable way to cover up a tattoo. Nametags You must wear a nametag every time you work. Nametags help guests identify you as the Applebee’s Team Member and remember your name on their next visit. The name on the name tag should be your actual name. Shirts Professional-looking shirts with collars in a style that fits and flatters and should be clean and wrinkle free. v T-Shirts are not allowed except for special events as authorized by your Manager. v Black in color. v A pattern within the fabric is acceptable, but the shirt needs to be entirely black-onblack. v Jewels and glittery decorations are unsafe and cannot be worn by restaurant staff. v Solid black or solid white undershirts beneath shirts are acceptable. v Long or short sleeves are acceptable, but sleeves are a must. v Shirts can be tucked in or un-tucked, depending on the length and style. o If it is un-tucked, the shirt must come down to at least the top of your slacks. o If it is tucked in, wear a belt. Jeans With so many brands and styles of jeans, Apple Central has provided some guidelines that allow individuality while maintaining consistency. (For safety reasons, capris and shorts are not permitted.) v Jeans must be: o Blue denim – dark or medium shades. o 5 pocket style. o Full length (no capris or shorts). v Pick a style that fits and flatters. o Professionally casual – too tight or too baggy are not acceptable. v Low rise is acceptable at Apple Central – but extremely low rise is not. Socks Team Members should wear socks and they should be solid black in color.

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Appearance Guidelines- Back of House

In addition to the guidelines listed above, Back of House Team Members will find position specific information provided below: Shirts Back of the House Team Members may be provided with Applebee’s logo t-shirts or they may wear a black t-shirt that otherwise meets Company standards. T-shirts must be clean each shift. Jeans or Chef Pants Back of the House Team Members may wear jeans or slacks such as Dockers or chef pants. Jeans/slacks must be clean, free of tears and properly fitting. For safety reasons, shorts are not permitted. Hat/Hair Hair must be neat, washed, groomed, and if longer than collar length, tied back for health reasons. No loose strands hanging around the face or neck. All facial hair (beards, mustaches, and sideburns) must be neat and trimmed. For additional food safety reasons, Team Members will be provided and should wear a baseball cap with Company logo when working in the Back of the House. Appearance Guidelines- Managers

It is imperative that Managers represent themselves, the Company and their Restaurant in a professional manner. Manager’s may wear dress pants or professional khakis with a collared, button down long-sleeve shirt, or collared polo shirt. Shirts should be conservative in color and may not be black. Additionally, clothing must be wrinkle-free and adhere to all safety requirements listed in the general appearance standard’s guidelines. Kitchen Managers may wear Chef pants and jackets if desired. Collared shirts with the Applebee’s logo are not required but may be purchased by the manager and worn while on duty. Nametags must be worn at all times to ensure Managers are easily identifiable to guests, vendors and Team Members. *Hourly Team Members should follow the manager’s dress requirements when working shifts as an Hourly Shift Lead.

Smoking is permitted only in designated areas and is only allowed during authorized breaks or when a Team Member is off-duty. The designated areas at your restaurant will be identified by your Manager in accordance with restaurant policy and applicable state law.

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Paydays Team Members are paid every other week, except in states where weekly pay is required. If a regular payday falls on a legal holiday, payment will be made on the preceding business day. Speak to a Manager about your specific payroll cycle. Team Members will be paid electronically, except where prohibited by state law. Hourly Team Members will have the option to enroll in direct deposit or enroll in the Company’s pay card program. You should discuss these options with your Manager during your orientation. Notice to Team Members Who Receive Tips Under the Fair Labor Standards Act (FLSA) (29 U.S.C. § 203(m)) and various state laws, Apple Central is required to pay tipped Team Members at least $2.13 per hour, or a higher rate in some states. If a Team Member’s hourly pay rate is less than the applicable minimum wage rate, then Apple Central may take a credit on account of the tips received by the Team Member equal to the difference between the hourly wage rate and the applicable minimum wage rate. This is known as a “tip credit.” The additional amount on account of tips (the “tip credit”) may not exceed a Team Member’s actual tips. Apple Central must inform Team Member of the FLSA’s tip credit provision in order to take a tip credit, and Team Members must always retain their tips, except when Team Members pool their tips with other tipped Team Members, which the law allows. If you were hired or will be working in a tipped position, you should review the Tipped Employees training video on Neighborhood University. Additionally, you should request and receive a copy of the Tipped Employee Policy from your Manager during your orientation.

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Workplace Leaves & Benefits

We offer a competitive benefits package to eligible Team Members. Eligible team members and managers will receive enrollment information upon hire or promotion into an eligible position. Hourly Team Members may access their enrollment information through their PeopleMatter account or from their Manager during new hire orientation. It is important that you review this information so that you don’t miss out on important benefit opportunities.

    Exempt  Managers  

Hourly  Team  Members  

   

Health   Dental   Vision   Company  Paid  Life  Insurance   Company  Paid  Family  Life  Insurance   Short-­‐Term  Disability  

Voluntary  Benefits   (Medical,  Dental,  Life  Insurance)  

Long-­‐Term  Disability   Voluntary  Benefits  

401K   Meal  Program  

401K   Paid  VacaFon   Jury  Duty   Bereavement  Leave   Meal  Program   Bonus  

Family Medical Leave (FMLA) Eligible Team Members may qualify for an unpaid leave of absence under the Family Medical Leave Act of 1993 or state law. FMLA leave provides job protection and the option of continued health insurance benefits for certain family and medical reasons for up to 12 weeks in a rolling 12- month period. For additional information regarding the requirements and coverage levels for FMLA, please see the attached Family and Medical Leave Policy. You may also contact Human Resources. Short-Term/ Long-Term Disability Exempt Managers who are or know they will be absent from work for 10 or more calendar days due to their own illness, pregnancy or injury may apply for short-term disability benefits. Please contact Human Resources to learn more about short and long term disability benefits.

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Military Family Leave (also referred to as MFLA) The Family and Medical Leave Act’s expanded regulations permit eligible Team Members to take MFLA leave in connection with a covered family member’s (spouse, son, daughter, parent, or “next of kin” defined as the closest blood relative) service in the Armed Forces. For additional information regarding the requirements and conditions of MFLA leave see the attached Family and Medical Leave policy. Contact Human Resources if you need to request MFLA. Military Leave Team Members who are active or reserve members of the U.S. Armed Forces will be granted leaves of absence for military service, training, or other obligations in compliance with state and federal laws. These Team Members may use available paid time off but are not required to do so. At the conclusion of the leave, Team Members generally have the right to return to the same position held prior to the leave or to a position with equivalent seniority, pay and benefits. Team Members are required to notify Human Resources as soon as they are aware of their military obligation. Requesting Leave Team Members who are active or reserve members of the U.S. Armed Forces will be granted leaves of absence for military service, training, or other obligations in compliance with state and federal laws. These Team Members may use available paid time off but are not required to do so. At the conclusion of the leave, Team Members generally have the right to return to the same position held prior to the leave or to a position with equivalent seniority, pay and benefits. Team Members are required to notify Human Resources as soon as they are aware of their military obligation. Requesting Leave Team Members requesting any type of qualified leave should notify their Manager and Human Resources as soon as possible to obtain information regarding the leave process. Failure to follow the process as outlined by Human Resources may result in the termination of your leave protected status and in some instances may result in separation from the Company. Voting We encourage Team Members to participate in civic responsibilities, including exercising the privilege of voting. In the event the polls are not open at reasonable intervals either before or after a Team Member’s scheduled work hours, the Team Member should discuss the situation beforehand with a Manager to determine an appropriate time to vote. The approved time off for voting shall be unpaid and shall be granted in keeping with applicable law. Jury Duty We will cooperate fully with local, state and federal courts in allowing Team Members to serve on juries. The Team Member may personally petition to be excused from jury duty if doing so would cause hardship on his or her family. However, if you are required to serve on a jury, please review the policy outlined in Neighborhood University.

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Bereavement Exempt Restaurant Managers will receive up to 3 days of bereavement leave with pay due to the death of your spouse, child(ren), brothers and sisters, parents, grandparents, domestic partner, significant other and parents-in-laws. You will receive 1 day of bereavement leave with pay due to the death of your aunt, uncle, and cousin. Leave beyond this may be taken as vacation.

Sick Leave Apple Central does not currently have a paid sick leave policy unless mandated by state law. Personal Leave Apple Central does not currently have a paid personal leave policy outside of those leaves protected by law. Paid Vacation - Hourly Team Members Apple Central does not provide paid vacation to hourly Team Members. We recognize the importance of having time away from work for rest and relaxation and encourage you to work with your Manager should you need time off from work for personal reasons. Paid Vacation - Salaried Restaurant Managers Paid vacation time is provided to Restaurant Managers as a voluntary benefit of time away from work for rest and relaxation. Paid vacation is not a wage, wage supplement, or any form of compensation. Please consult the Restaurant Manager Vacation Supplement for additional information regarding paid time off. Earning Vacation Vacation is accrued and added to vacation balances on a b i - weekly basis based on years of service in an eligible position as outlined in the table below: Years of Service 1 2 3-4 5-9 10+

Annual Vacation Award (hours) Pro-rated 80 104 120 160

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Weekly Accrual (hours) 1.54 1.54 2.00 2.31 3.08

WORKPLACE GUIDELINES

General Guidelines Team Members are responsible for ensuring the integrity of all Apple Central data records (including but not limited to employee, financial, business plans, or guest information) regardless of the form in which the records are stored (electronic, paper or otherwise). Each user is responsible for maintaining and handling all data in a professional and confidential manner. Team Members should direct any inquiries of a potentially confidential nature to their Manager. Managers are responsible for reviewing and adhering to the Company’s IT Policy. Please contact your Manager or the Director of IT for reference to the policy and all requirements to ensure the proper and ethical use of all Company equipment, programs including but not limited to internet access, intranet, email, phones, cell phones, voicemail, personal communication devices, remote resources connected to the systems, and any other Company-provided communication systems and/or information transmitted or stored there.

We encourage all Team Members to make the most of work time. T o e n s u re y o u r s a fe ty a n d o p tim a l g u e s t s a tis fa c tio n , th e use of personal cell phones and other electronic communication devices while at work is not allowed. In the event of an emergency, you may be contacted through the restaurant’s main phone number. You should refrain from texting or calling on your personal phone. At no time, are you allowed to take pictures on your mobile device of employees, guests, guest’s tickets, or any of the Company property. This is a violation of privacy and any unauthorized occurrence of this nature may result in immediate termination. We encourage you to leave your personal belongings in your vehicle or at home. In the event that you bring your cell phone to work, the phone should be turned off. The Company takes no responsibility for the loss or theft of personal belongings which are brought into the workplace.

Situations could arise in which the news media would approach Team Members for statements on behalf of the Company. If you are approached by the media to speak or comment on a situation regarding the Company and/or a restaurant, contact your Manager or your Area Director without delay. All media responses pertaining to the Company must be coordinated, approved, and issued through o u r a u t h o r i z e d central point of contact.

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These guidelines apply to all contributions, postings, and comments to personal websites and all other forms of online community activities. As a general matter, Team Members engaged in social networking may not make statements that either actually or potentially negatively impact or bring into disrepute the Company, its operations, its brands, or any of its products, services, customers, and Team Members. At no time shall a Team Member violate the privacy of other Team Members or Guests by posting private, confidential information. The only exception to this general rule is a communication that is otherwise legally protected.

As a Team Member, it is your responsibility to help guard our guests’ credit card information. Protect Guest Credit Card Information v Protect and conceal sensitive information at all times. v Do not leave credit cards or credit card information lying around. v Always check to see that the guest receives his/her credit card before leaving the restaurant. v If the guest forgets his/her credit card, find a Manager and ask that the card is concealed and that the card is placed in a secure place. v Do not share access cards, user ids or passwords that provide access to computer systems. v Be alert and trust your instinct. If something doesn’t look right, it probably isn’t. Alert your Manager or Area Director of any suspicious matters. Prevent Credit Card Skimming v Credit card skimming is prohibited. v Skimming is a practice in which a Team Member swipes a credit card through a special device called a skimmer that records the card owner’s account information. The skimmer copies the data contained on the card’s magnetic strip which can be used in identity theft and to manufacture counterfeit cards. v It is your responsibility to report to your Manager any act or suspicion of a data security breach, such as credit card skimming. Report a Data Security Breach v Immediately report to your Manager any suspicion that data security has been breached or a guest’s credit card has been compromised. v Managers should follow the guidelines set up for reporting a data security breach.

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* PCI is the Payment Card Industry Data Security Standard, which is a common set of security controls for protecting credit card information maintained by the PCI Security Standards Council. All merchants that store or process credit cards are subject to these data protection standards.

Managers are responsible to help protect guests’ credit card information. Additionally, Managers must take steps to train themselves and Team Members on data security awareness, which includes credit card security. The following provides additional information on Company policies/procedures regarding data security and is not intended to be all inclusive: Apple Central Password and Security v Access to all computer resources will be password-enabled. v Managers are prohibited from posting passwords in written form in their work area. v Managers are prohibited from communicating their personal password information to another user. v IT will monitor systems on the network for unauthorized activity. Unauthorized Wireless Networks v Managers must complete a manual check quarterly for unauthorized wireless networks in the restaurant. v Complete this check manually by doing the following: o Physically examine the following: – Each POS Terminal – The BOH Computer – Each network jack for connecting your POS and BOH Computers to the network o If there is a device that you don’t recognize, please report it to the Director of IT. Reporting a Data Security Breach v If you suspect that your BOH Computer has been breached or a guest’s credit card has been compromised, report it immediately to your Manager or Area Director.

Safety and Security Safety is essential to all Team Members in the workplace. Your personal safety, and the safety of your co-workers and guests, is first and foremost a priority and must be an important consideration in all workplace practices. The safety of all Team Members depends upon each of us taking personal responsibility to assist in the proactive practices of a safe working environment. We encourage you to use sound judgment regarding safety at all times, as well as common sense to reduce the risk of injuries and accidents in the workplace. 22

Chemical Substances Apple Central is committed to promoting a safe, healthy and productive work environment. We are committed to a drug-free work environment and we prohibit the inappropriate use and possession of alcohol or controlled substances at work or while at work-related activities. While working, Team Members may not use, possess, distribute, sell, transfer, or be under the influence, or otherwise have in your system, any of the following: illegal drugs (whether illegal under federal or state law); or unauthorized drugs (including prescription and/or overthe-counter drugs used for non- medical or unintended reasons); other chemical substances that may alter or impair a person's functioning and/or judgment; or drug-related paraphernalia. This includes, but is not limited to, the following circumstances: (1) on or off duty while on Company premises; (2) while conducting business-related activities on or off Company premises; (3) or, while operating a vehicle or equipment owned, rented or leased by the Company or while operating any vehicle or equipment for a business purpose. Alcohol Consumption The unauthorized possession or consumption of alcohol on Company property, the use of alcohol during working hours, and/or reporting to work while under the influence or otherwise having alcohol in one's system is prohibited. This prohibition does not apply to the authorized consumption of alcohol at social or business functions sponsored by the Company, or its related entities, where alcohol is served and the legal age requirement is met. However, we expect all Team Members to conduct themselves properly at all times while at Companysponsored functions or while representing the Company in any work-related setting where alcohol is served. In addition, restaurant staff may not consume any alcoholic beverage within four hours prior to the start of their shift or prior to visiting another Company restaurant to work in any capacity. We reserve the right to advise the appropriate authorities in the event that a Team Member violates the law. Hourly Team Members Hourly Team Members may drink responsibly in a Company restaurant with a maximum of 2 alcoholic beverages when they are off duty if the following requirements are met: 1) must be at least 21 years of age; 2) must pay full price for the alcoholic beverages; 3) must refrain from any behavior/language that is less than professional or not in the best interest of guests, co-workers, or the Company; 4) must not remove alcohol from the restaurant;5) may sit in the bar area, however should not sit at the bar. 6) all drinks must be ordered from a server and rung in by the server. 7) must not enter the Back of the House 8) must be out of uniform; and 9) must behave in accordance with the Company’s Responsible Service of Alcohol policies and procedures.

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Restaurant Managers Restaurant Managers are only allowed to consume alcohol when they are on a scheduled day off from work. They are not allowed to consume alcohol in the restaurant before or after a scheduled shift. All drink orders must be rung in by a server and Manager’s must behave in accordance with the Company’s Responsible Service of Alcohol Policies and Procedures.

Accident & Injury Prevention Maintaining a safe work environment for all Team Members, including hourly Team Members and Restaurant Managers, is a priority. This commitment requires the continuous cooperation of all Team Members. We strongly encourage all Team Members to communicate with their fellow Team Members, including Managers, regarding safety issues. You need to be aware of any specific job hazards in your position at the restaurant. Following these basic safety rules will also help prevent personal injury or the injury of others in the workplace. v Team Members should notify a Manager of any unsafe conditions or hazards that is found in the work environment; even the smallest situations that could cause potential issues. A Manager is expected to resolve the situation. v Team Members should not attempt to operate any equipment or use any chemicals until they have received proper training about correct operations and cleaning procedures. If equipment is broken, that information should be reported to a Manager immediately, who is responsible for coordinating any repairs. Team Members may not attempt to conduct any repairs. v Use proper body postures and similar safe practices to prevent injuries (i.e. bending your legs when lifting). v If you incur an injury, seek appropriate help, first aid, and immediate medical attention. See next section for reporting. v Failure to conform to safety guidelines may reduce or disqualify you from Workers’ Compensation benefits. Reporting of Accident or Injury In case of an injury on the job, you must immediately report the injury to your Manager or Area Director no matter how minor the injury may seem. Failure to report an injury is a serious matter, and may impact coverage of the injury under Workers’ Compensation Insurance. Reporting the injury also helps verify compliance with the laws governing reporting deadlines and allows Managers to investigate injuries to eliminate future or similar accidents. If you witness or learn of an accident, it is important that you report the incident. Provide as many details as possible and protect and secure all evidence. Team Members will not be retaliated against for making a report of a Workers' Compensation injury and/or for exercising such rights.

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Apple Central believes that all employees have the right to work in a safe and secure environment and that all employees should be treated with dignity and respect. Acts of violence or threats of violence will not be tolerated and will result in disciplinary action up to and including termination. Apple Central expects all employees to conduct themselves in a non-threatening, nonabusive manner at all times. This includes activities outside of work that could significantly affect the business relationship and / or reputation. You will learn more about our safety policies during your new hire orientation. You may also access the information at any time through Neighborhood University or by asking your Manager. All threats of violence, both direct and indirect, should be reported as soon as possible to your Manager or Human Resources. This includes threats by Team Members, as well as threats by guests, vendors, visitors, or other members of the public. All suspicious individuals or activities should also be reported.

The Company requires compliance with all federal, state, and local environmental laws as it pertains to proper disposal of hazardous items and waste. Check with your Manager for the proper way to dispose of hazardous items (i.e. kitchen grease). Communicable Diseases We have established high standards and expectations related to sanitation, cleanliness and proper food handling. We are committed to the protection of health and safety for all Team Members and restaurant guests as it pertains to communicable diseases and reducing the risk of transmitting illnesses to others. Please check with your Manager to review the policies and procedures surrounding communicable diseases in the workplace. Hazardous Materials Toxic and hazardous materials may be utilized in your work environment. Team Members have the right to know what chemicals they may be exposed to on a daily basis. As such, a list of hazardous materials and Material Safety Data Sheets (MSDS) are available in your restaurant. You will learn more about how to safely perform your job during your orientation and training. If you have additional questions, please review the Safety I & II sections on Neighborhood University or by contacting your Manager.

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Performance Management We are a performance-based organization and top performers are recognized accordingly. We believe that providing our Team Members with both formal and informal feedback on job performance is a positive way to measure current performance and to provide recommendations for improved performance. You will receive regular informal feedback on your performance and may at times receive more formalized feedback in the form of one-to-ones with your Manager or formal performance evaluations. Apple Central believes in developing our Team Members and Managers and providing opportunities for continued career advancement through on-going training and development. Please notify your Manager and Area Director if you have interest in learning new positions within the restaurant and to learn more about advancement opportunities.

At times it may be necessary for your Manager or Area Director to discuss performance or behavior concerns with Team Members. Progressive discipline may be implemented at the Company’s sole discretion and is intended to aid Team Members in correcting minor performance and /or unacceptable behavior. It also provides for more severe counseling for repetitions of a particular offense, a continuation of unacceptable work behavior, or violation of other Company policies and procedures. The progressive discipline process is intended to encourage Team Members to improve their performance. KEEP IN MIND THAT TEAM MEMBERS ARE “AT-WILL” EMPLOYEES. ALTHOUGH ALL EMPLOYMENT RELATIONSHIPS MAY BE TERMINATED “AT WILL” BY THE TEAM MEMBER OR THE COMPANY, WITH OR WITHOUT CAUSE AND WITHOUT FOLLOWING ANY FORMAL SYSTEM OF DISCIPLINE OR WARNINGS, THE COMPANY MAY EXERCISE ITS DISCRETION TO TAKE CORRECTIVE ACTION AS IT DEEMS APPROPRIATE. NOTHING IN THIS SECTION REGARDING DISCRETIONARY PROGRESSIVE DISCIPLINE IN ANY WAY CHANGES THE AT-WILL STATUS OF EMPLOYMENT WITH THE COMPANY NOR IS THE COMPANY IN ANY WAY BOUND TO FOLLOW ANY PARTICULAR STEPS, ORDER OR PROCEDURE IN EXERCISING ITS DISCRETION IN DISCIPLINING EMPLOYEES. Apple Central’s Progressive Discipline Guidelines Day-to-Day Coaching (Verbal): The Team Member is verbally counseled, with a notation made in his or her file that such counseling occurred. Written Warning: A written notice of corrective action will be presented to the Team Member and the seriousness of the problem discussed with the Team Member. Final Written Warning: A written notice of corrective action indicating any further violations may lead to termination of employment.

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Hoff, Nikki M. 6/17/13 10:16 AM Formatted: Font:Italic, All caps

Hoff, Nikki M. 6/17/13 10:16 AM Formatted: Font:Italic, All caps

Termination: Team Members who do not comply with Company policies despite previous counseling and employees who commit violations that Company management believes merit severe discipline regardless of whether previous discipline was issued will be terminated. Severe Misconduct: The following may result in immediate termination at Company’s sole discretion: •

Alteration, manipulation, falsification, eradication or removal of, or omissions and misrepresentations in Company forms, paperwork, reports or receipts. This includes but is not limited to: inventory counts and /or paperwork, guests’ tickets, applications for employment, declaration of tips, disclosure of criminal background information.



Theft or misappropriation of Apple Central property, (including but not limited to, money, food, gift cards, equipment, information, reports, business practices, procedures guests property or Team Member property.



Working “off the clock” or allowing / requesting another employee to work “off the clock”.



Allowing any non-Apple Central personnel, unscheduled vendor or any Apple Central Team Member who is not on the clock into the restaurant outside of normal business hours or into unauthorized areas during normal business hours.



Disclosure of confidential information to anyone other than authorized personnel.



Possession, distribution, sale, use or being under the influence of alcohol, illegal drugs (state or federal), or inhalants while on duty or on Apple Central property.



Possession of a weapon or other hazardous device while on duty or on Apple Central property.



Conviction, including deferred adjudication, for a crime of moral turpitude, felony, act of dishonesty, violence, drug manufacture / distribution / possession, or other crime related to the functions of your job.



Seeking to apprehend or detain someone suspected of a criminal act such as robbery.



Altering or falsifying a guests ticket, charge slip or gift card.



Providing guest or other Team Members’ personnel information to the media, posting on social websites, personal blogs or at any time using information in a manner outside of its proper intent.



Failure to follow proper safety procedures endangering yourself, your coworkers and/or guests.



Harassment, discrimination, inappropriate behavior, or actions that create an offensive or hostile environment for Team Members, guests or vendors.

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Acting in a manner that is unprofessional, demeaning, degrading and/ or generally offensive to subordinates, superiors or guests to include but not limited to: abusive language, throwing food, utensils, or other items that may cause injury, name-calling or shouting in a threatening or demeaning manner.



Refusal to cooperate in an investigation, including failure to disclose known information and/ or failure to attend a scheduled interview.



Horseplay, fighting or scuffling on Company premises or at Company sponsored functions.



Threatening, intimidating or otherwise interfering with Team Members, guests or vendors.



Having a no-call, no–show shift.



Sleeping on the job.



Engaging in behavior or actions that cause management to lose confidence in your judgment or abilities.



Failure to follow a reasonable directive from a supervisor.



Gross Insubordination

Other Violations Warranting Discipline at the Company’s sole discretion (e.g. written, final written warning or possible termination) • Failure to follow Company policies and procedures. •

Unsatisfactory job performance.



Continued dependability issues.



Unproductive use of time, including lounging or loafing while on duty, visiting with friends, failure to follow Manager’s direction.



Failure to follow the Company’s cell phone policy.



Failure to follow the Company’s dress code and grooming standards.

Duration Except in cases where prior disciplinary actions could be used to find the Company liable, as in harassment cases, progressive counseling actions shall remain active and form the basis for more serious disciplinary action of one (1) year from the date of issue.

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Hoff, Nikki M. 6/17/13 10:19 AM Deleted: Progressive

Although we hope your employment will be a satisfying relationship, we recognize that separation from employment occurs because one or both parties reached such a decision. Separation from employment can occur for a variety of reasons including a voluntary decision (i.e. resignation or job abandonment) or an involuntary decision (i.e. termination of employment-at-will relationship). Please provide as much notice as possible when you are resigning your position. All Company property should be returned to your Manager on or before your last shift.

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Hoff, Nikki M. 6/17/13 10:19 AM Deleted: long-term and