PROGRESSIVE DISCIPLINE

There are certain standards of behavior necessary for the proper conduct of our business. 2nd Street USA Inc. may initiate disciplinary measures for various reasons, including, but not limited to, violation of the Company’s standards of behavior, policies, or rules, or for unsatisfactory work performance.

The Company maintains a progressive discipline procedure to try to ensure fairness. The procedure is designed to give STAFF advance notice and an opportunity to correct, if possible and reasonable, problems with their conduct or performance. The procedure may involve one (1) verbal warning followed by one (1) or more written warnings before the Company may deem it appropriate to suspend or terminate a STAFF Member. However, the Company may decide that immediate suspension or termination is appropriate depending on the nature of the offense. The different levels of discipline may range from verbal warnings and/or written warnings to suspension and termination, based on the individual case and its nature and severity. Certain steps may be repeated or bypassed, depending on the severity and nature of the infraction, and the STAFF Member’s work/discipline record.

The above notwithstanding, STAFF should remember that employment at 2nd Street USA Inc. is “At-Will.” Accordingly, employment and compensation can be terminated at any time, with or without cause, at either the Company’s or the STAFF Member’s option.