As a C.O.E. employee, you enjoy a broad program of valuable benefits that are an important --and often underestimated-- part of your total compensation. Just as important, the company pays practically the full cost of all these benefits. In fact, the company pays the entire cost of these coverages:

• Vacation Pay
• Holiday Pay
• Basic Life Insurance
• Sickness and Accident Insurance
• Health insurance for the employee (employee pays for family members)
• Personal Day (s)
• Bereavement Leave

In addition, the company:

• Shares the cost of your Social Security and Medicare Coverage.
• Pays the entire cost of Workers' Compensation and state unemployment

insurance.

This document is designed to present a quick look at the main features of your total C.O.E. Benefit Program, rather than a complete description of all plan provisions. Be sure to check the rest of the handbook sections for a closer look at how each plan works. Complete details are contained in the formal insurance policies and other plan documents that legally govern the operation and administration of each plan, including the final interpretation of specific plan provisions.

In this section:

The Hire Date of each employee shall be the 1st day for which the employee receives compensation.

Continuous Service shall be interrupted only by the following:

Part-time and seasonal employees are not entitled to any benefits that are so stated in the plan provisions of the insurance policies.

The part-time and seasonal employees are entitled to holiday pay based on the number of hours worked.

Part-time is defined as anyone working less than 32 hours per week.

Part-time employees do not earn vacation on a prorated basis.

III Holiday Pay

The following holidays will be paid:

New Year's Day First day in January

Memorial Day Last Monday in May

Independence Day Fourth day of July

Labor Day 1st Monday in September

Thanksgiving Day Fourth Thursday in November

Christmas Day Twenty-Fifth day of December

Holiday pay will be your regular rate x 8 hours. Your hours do not accumulate to overtime. Overtime hours are hours worked, not earned.

Example:

Monday was a holiday.

You work 8 hours on Tuesday, Wednesday, Thursday, Friday, and Saturday.

Your pay will be as follows:

8 hours regular - holiday

40 hours regular - hours worked

An employee on vacation during a holiday will not be charged vacation for the holiday. However, that day will be paid and not accrued.

Three (3) consecutive days of bereavement leave, one (1) with pay, will be granted to an employee upon the death of a member of his/her immediate family, interpreted for the purpose of this article to include: spouse or significant other ("significant other" as used in this agreement, is defined to mean one who stands in place of a spouse and who resides with the employee), child, step-child, grandchild, parent, 1 set of step-parents, grandparent, great-grandparent, brother, sister, step-sibling, mother-in-law, father-in-law, legal guardian or other person who stands in the place of a parent. The employer may grant vacation or personal leave to extend the bereavement leave.

The above is subject to verification.

Eligibility for Personal Day

Any employee who has worked or has continuous service for a period of 1 year may receive one (1) paid personal day per calendar year.

Any employee who has worked or has continuous service for a period of 5 years may receive two (2) paid personal days per calendar year.

VI Vacation

Permanent full-time employees shall be granted vacation leave with pay at regular rate as follows:

Length of Service Accrual rate

Less than 1 year -0-

1 year or more 40 hours

After you have 5 - 1 weeks of vacation you are entitled to 2 weeks vacation. However your 2nd week is not based on your hire date, but must be taken from December 1 thru March 31 of the following year.

Example of above: John Doe started March 4, 1980.

March 4, 1980 to March 4, 1981 No vacation

March 4, 1981 to March 4, 1982 1 week

March 4, 1982 to March 4, 1983 1 week

March 4, 1983 to March 4, 1984 1 week

March 4, 1984 to March 4, 1985 1 week

March 4, 1985 to March 4, 1986 1 week

Dec. 1, 1985 to March 31, 1986 1 week

Notice his 2nd week is not due March 4, 1985 but December 1, 1985.

This system was to eliminate anyone taking two (2) weeks vacation in the middle of the summer when the work load was at a peak, and as not to create a restriction on the granted vacation time.

If you have any questions about this Benefit Program, please see your supervisor.

The Management of Central Ohio Electric, Inc.