Seattle Automotive Distributing, Inc.  
Employee Handbook  
              9/25/2009  
INTRODUCTION  
                   
Welcome to Seattle Automotive Distributing, Inc.!  Seattle Automotive provides a full range  
of automotive parts and services to its customers - private installer repair shops and dealer-  
ships - located throughout the Northwest.  Major lines carried are AC Delco, Motorcraft,  
Federal Mogul, Cardone, and Denso.  At Seattle Automotive we are striving to   
obtain and maintain a truly satisfying and productive workplace.  You are an important part  
of this effort.  The policies and practices detailed in this booklet are designed to support you  
as a Seattle Automotive Distributing employee.  If you have any questions after reading this  
handbook, please discuss them with your supervisor.  He/she will be happy to provide any   
additional information.              
We recognize that the very best people are essential to our success.  Therefore, as we strive   
to provide excellent service to our customers, we also recognize the needs of those who  
provide that service  -- you!            
                   
Mission Statement              
                   
It is the mission of Seattle Automotive Dist., Inc., to be the best provider of high-quality  
automotive parts and related support services to our customers.      
We will accomplish this while increasing the effectiveness of our employees within a rewarding  
environment; building relationships with customers to meet their needs; creating new programs  
to assist in selling parts and services; and conforming to Seattle Automotive policies and   
prescribed business ethics, while meeting or exceeding corporate performance goals.  
                   
Customer Service Philosophy          
                   
Seattle Automotive Distributing, Inc. believes that when we put the customer first,   
success will follow.              
                   
Equal Opportunity Statement          
                   
Seattle Automotive Distributing, Inc. has a continuing policy to ensure that fair and equal   
employment opportunities are extended to all persons without regard to race, creed, sex,  
age, national origin, disability, marital or veteran status.  This policy applies to hiring,  
promotions, transfers, and other terms and conditions of employment.      
                 
Purpose of This Handbook            
                   
This Handbook has been prepared to inform you about the Company's philosophy,   
employment practices, and policies, as well as the benefits provided to you as a valued  
employee and the conduct expected from you.        
                   
We hope this Handbook will help you feel comfortable with us. We depend on you -- your  
success is our success. Please don't hesitate to ask questions. Your manager will gladly  
answer them. We believe you will enjoy your work and your fellow employees here. We also  
believe you will find Seattle Automotive Distributing a GREAT place to work.  
                   
We ask that you read this Handbook carefully, and refer to it whenever questions arise. We  
also suggest that you take it home so your family can become familiar with our policies.  
                   
Seattle Automotive policies, benefits and rules, as explained in the Handbook, may be   
changed from time to time as business, employment legislation, and economic conditions  
dictate. If and when provisions are changed we will provide notification by posting them on  
bulletin boards and sending them out to employees to be signed and acknowledged.  
                   
Important Notice              
                   
The policies in this Handbook are to be considered as guidelines, not a contract or promise  
of specific treatment. Seattle Automotive Distributing, at its option, may change, delete,   
suspend or discontinue any part or parts of the policies in the Handbook at any time with-  
out prior notice. Any such action shall apply to existing, as well as, future employees with  
continued employment being the consideration between the employer and employee.  
No statement or promise by a supervisor, manager, or department head may be interpreted  
as a change in policy nor will it constitute an agreement with an employee.  
Should any provision in this Employee Handbook be found to be unenforceable and   
invalid, such findings do not invalidate the entire Handbook, but only the subject provision.  
                   
This Handbook replaces all other previous Handbooks for Seattle Automotive Distributing  
and is effective January 2009.            
                   
New Employee Orientation          
                   
The New Employee Orientation offers a review of Seattle Automotive's key personnel policies  
and practices, as well as an overview of our business. During the orientation, you will be given   
the necessary paperwork to make you an official employee.      
                   
At Will Employment            
                   
All employment and compensation with Seattle Automotive Distributing is "at will" which means  
that your employment can be terminated with or without cause, and with or without notice, at  
any time, at the option of either the Company or yourself, except as otherwise provided by law.  
The Policies in this handbook do not create an employment contract or in any other way affect  
an employee's employment-at-will status.           
                   
Attendance                
Your punctual and dependable presence at Seattle Automotive Distributing plays a key part  
in our mission to provide unparalleled customer service.  Knowing that, we expect you to   
maintain your own record of the time you work.  To satisfy our customer's' needs,   
it is necessary to keep absences to a minimum.  If you need time off, please discuss the  
situation with your supervisor preferably in advance of the time off.    
If you can not report to work for any reason, please notify your supervisor at the earliest  
possible time. This can help us to arrange coverage of your duties.    
If you need time off for doctor or dentist appointments or any other personal business,   
be sure to consult and arrange the time off with your supervisor.      
                   
SNOW DAY POLICY: Employees who make it to work and expect to work their full 8 hours,   
but are sent home early due to bad weather & road conditions, are to be paid for the full 8 hours.  
They must work at least 3 hours or more to receive the 8 hours of pay.    
                   
Your Benefits              
                   
The following is a summary of your benefits as a Seattle Automotive employee.  For a complete
description of eligibility and coverage for health, dental, vision, 401(k), Disability and Life, refer   
to the benefit books. You can also call Shannon for any questions you may have.  
                   
Health Insurance 2009            
                   
Seattle Automotive Distributing pays all but $83.20 of the Group Health Options medical   
premium for full time employees.  If the employee chooses to sign up for the medical insurance.  
$83.20 per month ($41.60 per pay period) will be deducted from their paycheck.  The employee  
pays for their spouse ($498.42/mo.) and (or) dependent children ($340.68/mo) premium also  
via payroll deduction.                
                   
Dental Insurance 2009            
                   
Assurant is our Dental provider and is voluntary to full time employees for $49.51 per month.  
Family members can also be added for an extra premium.        
There are 2 levels of coverage, one being a lower rate of $29.75 per month also.  
                 
Eligiblity                
                   
Employees become eligible for the medical plans on the 1st of the month after 90 days of   
employment.  If you start work on any day other than the first of the month the coverage will   
not begin until the 1st of the following month of your 90th day of employment.  
                   
Pension Plan                
                   
Our 401(k) Retirement Plan is a significant employee benefit.      
The plan requires an employee to be 21 years of age and must have worked full time for 12  
months from starting date.  The enrollment date shall be semi-annual in July  
or the first day of the plan year, which is January 1st.  Vesting is 20% per year for  
5 years to be 100% vested.            
                   
Even if you choose not to contribute to the 401(k) Plan, please do fill out and sign the   
enrollment form so you may receive any profit sharing benefits.    
                   
Section 125 Cafeteria Plan - Premium Reduction Option    
                   
Full time employees are eligible to sign up for Section 125 at open enrollment each   
November and 90 days after hire.  This plan will take your medical, dental & vision   
deductions from your paycheck pre-taxed.  This means you will have fewer taxes taken out of   
your paycheck which means you will save approximately 23% on the premiums through   
pre-taxing your deductions.  For more information see the Plan Summary.    
                   
Optional Life, Disability, Accident          
                   
Life and disability insurance is also available through Colonial Life.  A representative  
will contact eligible employees at each enrollment period.      
                   
Benefit Changes              
                   
All Benefits are reviewed annually to provide a good package at an acceptable cost.    
Therefore, the specific plans, coverage or benefits may change from time to time.  You will  
be advised as soon as any changes occur.  Please contact Human Recources for the specifics 
of the current plans if you need them.              
                   
Holidays                
                   
Full time employees receive a total of 7 paid holidays each year:      
  New Years Day              
  Presidents Day (floater)            
  Memorial Day              
  Independence Day -- Fourth of July          
  Labor Day              
  Thanksgiving Day            
  Christmas Day              
                   
Presidents Day can be taken any day (pre-approved by your supervisor) of the year after the  
actual holiday. You need to use your "floater" day by December 31st.    
Note:  If a day after or before a holiday is missed, unexcused or not previously planned and   
approved ahead of time, you will NOT be paid for that holiday.      
                   
Vacations                
                   
As a part of satisfying and productive work experience, Seattle Automotive recognizes your   
need for rest and recreation away from the job.  Therefore, a schedule of vacations has been  
established for eligible employees. The schedule is based on the length of time you have   
worked for the company:              
  Length of Employment   Vacation Earned at the Rate of:  
  One Year……………………...……………. One week per year (40 Hours / 5 Days)  
  After completion of 3 Years…………………….. Two weeks per year (80 Hours / 10 Days)  
  After completion of 5 Years………………. Three weeks per year (120 Hours / 15 Days)  
  After completion of 10 Years……………….. Four weeks per year (160 Hours / 20 Days)  
Earned vacation time begins after the anniversary of your hire date.    
Vacation & Holiday time may not be carried over into the next year.  You must use the time  
earned or it will be forfeited.            
***All vacation time must be approved by your supervisor.***  We must be reasonably staffed at  
all times.  Vacation times are on a first come first serve basis.  However, if two people submit  
at the same time for the same week,  the employee with seniority will have preference.  No 2  
employees in the same work group may take vacation at the same time:  an example would  
be 2 drivers at the same warehouse, 2 counter people,  ect……..    
                   
Jury Duty                
                   
Seattle Automotive believes that serving on a jury is a civic duty.  Therefore, unless your  
absence would result in a substantial loss to the company, you are encouraged to serve.  
You will continue to receive your regular wages (less the amount you are paid to serve as   
a juror) while on jury duty.              
                   
Drivers License & Driving Record          
                   
Employees whose work requires operation of a motor vehicle must present and maintain a   
valid drivers license and a driving record acceptable to our insurer. You will be asked to   
submit a copy of your driving record to the Company at the time of hire. Any changes in your  
driving record must be reported Human Recourses immediately. Failure to do so may result  
in disciplinary action, including possible dismissal.        
                   
Customer Relations              
                   
The success of Seattle Automotive depends upon the quality of the relationships between the  
Company, our employees, our customers, our suppliers and the general public. Our customer's  
impression of Seattle Automotive and their interest and willingness to purchase from us is  
greatly formed by the people who serve them. In a sense, regardless of your position, you are  
a representative of the Company. The more goodwill you promote, the more our customers  
will respect and appreciate you, the Company and our products and services.  
                   
Here are several things you can do to help give customers a good impression of Seattle Automotive:  
                   
1.  Act competently and deal with customers in a courteous and respectful manner.  
                   
2.  Communicate pleasantly and respectfully with other employees at all times.  
                   
3.  Follow up on customer orders and questions promptly, provide businesslike replies to  
     inquiries and requests, and perform all duties in an orderly manner.    
                   
4.  Take great pride in your work and enjoy doing your very best. Provide our valued customers  
     with service and the pride and integrity that we have developed during our many  
     years of business.              
                   
5.  Exceed Our Customer's Expectations.          
                   
These are the building blocks for yours, and Seattle Automotive's continued success.  
                   
Leaves of Absence              
If you find you are unable to work because of disability, military service, or for urgent business  
or personal reasons, you may request a leave of absence.  An approved leave will preserve   
your continuity of service.  A leave of absence not covered under the FMLA (Family and   
Medical and Leave Act) may alter your company benefits and position.  There are many types  
of leaves of absence and the guidelines are different for each type of leave. Please contact your
supervisor or Human Recourses for details before going on leave and obtain approval from  
your supervisor when needed. We require employees to use up any vacation time before   
qualifing for FMLA leave.              
                 
Employee Responsibilities          
                   
Personal information: It is important that you notify Human Recourses of any changes in  
your personal information, such as emergency contact, W-4 statuses, name / address changes,  
beneficiaries, additional education, additional training, ect.  Please keep us updated so we   
can properly administer your compensation and benefit package.    
                   
Absences:  If you cannot report to work for any reason, please notify your supervisor at the  
earliest possible time.  This will help us make arrange to cover your duties.  
                   
Time Off:  If you need time off for doctor or dental appointments, or to take care of other   
personal business, be sure to consult with your supervisor first.      
                   
Confidentiality              
                   
As an employee of Seattle Automotive, you may become aware of internal information   
important to the company's success.  Because it is important to protect the company's   
competitive position, you cannot discuss any confidential or business information with people  
not employed by Seattle Automotive.  If you have any questions about any information, please  
talk to your supervisor.              
                   
Your Safety              
                   
Seattle Automotive recognizes that our greatest resource is you, the employee.  Because your  
contributions are so important to the company, your continued good health is a great concern.  
Safety is a job requirement and the responsibility of every employee.  Any unsafe acts,   
practices, or conditions must be brought to the attention of your supervisor immediately.   
*  Avoid overloading electrical outlets with too many appliances or machines.  
*  Ask for assistance when lifting heavy objects & use back support belts provided for lifting.  
*  Keep work areas clean and orderly, and the bins clear.      
*  Stack materials only to safe heights.          
*  Watch out for the safety of fellow employees.        
*  Keep cabinet doors and file cabinet drawers closed when not in use.    
*  Sit firmly and squarely in chairs that roll or tilt.        
*  Use flammable items, such as cleaning fluids, with extreme caution.    
Page 8                  
Other Policies & Standards          
                 
Use of Company Vehicle            
                   
If you are authorized to use a Company vehicle to conduct company business, you must  
adhere to the following rules:            
*   You must be a licensed driver.            
*   You are responsible to check engine fluid levels regularly.      
*   You are responsible for paying any traffic violation tickets. Also, please park appropriately  
     --parking violations will not be paid by the Company.      
*   You must keep the vehicle clean at all times -- outside as well as inside.  Customarily we  
     wash company vehicles every Friday.          
*   You must not allow persons not authorized or employed by the Company to operate or ride  
     in a company vehicle.              
*   In the case of an accident, you will be required to fill out the accident report, get names of  
     any witnesses, ect.  Your supervisor should be able to answer any questions you have  
     in the case of an accident.            
                   
Theft                  
                   
Internal theft is a serious issue for Seattle Automotive Distributing. Although taking small items  
of Company property may seem inconsequential, the cumulative effect can be very large.   
Stealing from the company is like stealing from yourself. Losses from theft immediately affect  
our ability to increase wages and can jeopardize the profitability of the company.  
                   
Use of Computers.  The personal computers available to employees are to be used  
exclusively for business purposes only unless you receive permission from your supervisor.  
                 
No Harassment Policy            
                 
We do not tolerate the harassment of any of our employees, customers, clients or the general   
public.  Any form of harassment that violates federal, state or local laws, including but not limited  
to harassment related to an individual's race, religion, color, sex, age, national origin, ancestry,  
citizenship status, marital status, sensory, mental or physical handicap or disability is a violation  
of this policy and will be treated as a disciplinary matter.  For these purposes the term 'harassment'  
includes slurs and any other offensive remarks, jokes, other verbal, graphic or physical conduct.  
                 
In addition to the above listed conduct, 'sexual harassment' can also include the following  
examples of unacceptable behavior:            
                 
O Unwanted sexual advances            
O Offering employment benefits in exchange for sexual favors      
O Visual conduct; leering, making sexual gestures, displaying of sexually suggestive   
objects, pictures, cartoons or posters.          
O Verbal sexual advances, propositions or requests        
O Verbal abuse of a sexual nature, graphic verbal commentaries about an individual's  
body, degrading words used to describe an individual, suggestive notes, letters or   
invitations.              
O Physical conduct; touching, assault, impeding or blocking movements    
                 
If you have any questions about what constitutes harassing behavior, ask you manager or Human   
Resources.                  
                 
Violation of this policy will subject an employee to disciplinary action up to and including   
discharge.                
                 
If you feel you are being harassed by another  employee you should report it to your manager.  If  
you do not feel you can discuss this with your manager you should contact Human Recources   
to arrange a meeting to discuss the complaint.  You can be assured that you will    
not be penalized in any way for reporting a harassment problem.        
                 
All complaints of harassment which are reported to management will be investigated as promptly  
as possible and will be treated with as much confidentiality as possible.       
                 
Your notification of a problem is essential to us.  We cannot help resolve a harassment problem  
unless we know about it.  Therefore, it is your responsibility to bring those kinds of problems to our  
attention so we may address them promptly.          
                 
Personal Behavior Policy          
                 
In addition to our "No Harassment Policy" Seattle Automotive maintains a Personal Behavior  
Policy.  This policy is directed towards conduct which may not otherwise fall within the legal  
definition of harassment but none the less, projects image problems for our business.    
                 
All employees must conduct themselves in a professional manner.  Unprofessional behavior in the   
workplace is not tolerated. This includes any profanity or intimidation that causes an uncomfortable  
or hostile work environment. Employees who fail to observe these standards will be subject to   
disciplinary action up to and including termination.          
Page 10                  
                 
CELLULAR PHONE USE POLICY          
                   
Seattle Automotive recognizes that cellular phone use is widespread. Therefore, the  
Company utilizes cell phones to enhance business communication.    
                   
The intent of this policy is to outline acceptable cell phone use in order to prevent it  
from interfering with safety, productivity or other Company business. Within the   
guidelines outlined, cell phones may be used on the Company premises.    
Any electronic items which may distract employees from attention to their jobs   
are not allowed.                
                   
All employees are covered by these guidelines at all locations.      
                   
Seattle Automotive provides cellular phones to Sales and Management who need  
them to perform their jobs. These cell phones are for business purposes only.  
                   
Personal cell phones may be used ONLY during a scheduled break or lunch,   
provided such use does not disrupt others from their work. These phones may not   
be carried into or used in the work area. Instead, during working hours, cell phones  
are to be stored in a desk or your own vehicle.        
                   
Talking on a cel phone while driving a company vehicle is strictly prohibited. Studies reveal  
that this distraction from the driving task substantially increases your chance of being  
involved in an accident.              
Delivery Drivers absolutely, in no way, are allowed to use cell phones while driving  
a Company vehicle - If you find you are lost or in an emergency situation, pull the   
car over safely and come to a complete stop before making any call.    
                   
VIOLATION of this policy will result in disciplinary action.      
                 
Dress Code/Personal Appearance        
                   
Please understand that you are expected to dress and groom yourself in accordance with accepted social and   
business standards, particularly if your job involves dealing with customers or visitors in person. Each manager or  
department head is responsible for establishing a reasonable dress code appropriate to the job you perform.  
                 
A neat, tasteful appearance contributes to the positive impression you make on our customers. You are  
expected to be suitably attired and groomed during working hours or when representing the Company. A good  
clean appearance bolsters your own poise and self-confidence and greatly enhances our company image.  
                 
Personal appearance should be a matter of importance for each employee. If your manager feels your attire is out  
of place, you may be asked to leave your workplace until you are properly attired. You will not be paid for the time  
you are off the job for this purpose. Repeated disregard for this dress and grooming policy may result  
in disciplinary action.                
                 
The Company wishes to provide a work environment that is free of safety hazards, offensive behavior   
and harassment of any kind.               
                 
Here are some basic GUIDELINES of dress all employees are expected to follow:    
                 
* Clothing should be worn and fit in such a manner that it does not expose the abdomen,  
chest, or buttocks areas.            
                 
* Clothing should be free of sexually related references, foul language, or suggest or   
promote the use of illegal drugs.            
                 
* Clothing, to include jewelry and hair, should not be loose or dangle in such a way   
that it creates a safety hazard.            
                 
** We ask that you NOT WEAR tank tops, halter tops, beachwear, flip flops / thongs, distracting,  
offensive or revealing cloths on the job.          
                 
** Pants, jeans, shorts or skirts worn below the waistline are NOT acceptable.    
                 
The Policies in this handbook do not create an employment contract or in any other way affect  
an employee's employment-at-will status.           
                 
Return To Work Policy          
                   
Seattle Automotive Distributing values the safety, health and well being of all  
employees. Our company policy is to provide safe and healthful working conditions  
in all operations and to follow the laws and regulations about the safety and health  
of our employees.              
                   
Should you become injured or ill, it is important that you return to employment with  
our company as early as is medically safe for you to do so. We will stay in contact  
with you and your medical provider to keep up-to-date on your recovery progress.  
                   
1.)  You will be required to contact us on a bi-weekly basis if out over 1 week.  
2.)  You will be required to submit medical documentation from your provider  
       after each doctor's visit.            
3.)  Failure to follow through with the above requirements may result in  
       disciplinary action.              
                   
We will develop transitional (light) duty assignments for employees who are unable  
to return to their normal duties while recovering from their injuries. Medical studies  
show that transitional work speeds the healing process. We will contact your  
medical provider to furnish information on the nature of the work you perform.  
This transitional work will be done on a temporary basis.      
                   
Should you be assigned to transitional duty, you will be expected to follow the advice  
of your medical provider. If you have trouble performing these duties, let your   
supervisor know immediately. You then need to follow-up with your doctor.    
He/She should provide a written report giving medical reasons why you are unable  
to continue working.              
                   
No one knows your job better than you do. Please help us by making suggestions  
about duties you feel you can safely perform. Also, please let us know how your job  
might be changed so you, or an injured co-worker, can more easily and safely  
perform your duties.              
                   
Please report all injuries or hazardous situations to your supervisor immediately.  
                 
Computer, E-mail & Internet Usage      
                   
The following guidelines have been established for using the Internet and e-mail in an appropriate,  
ethical and professional manner.            
                   
1. Seattle Automotive Internet and e-mail access may not be used for transmitting, retrieving or   
storing of any communications of a defamatory, discriminatory or harassing nature or materials that  
are obscene or X-rated. No messages with derogatory or inflammatory remarks about an individual's  
race, age, disability, religion, national origin, physical attributes or sexual preference shall be   
transmitted. Harassment of any kind is prohibited.        
                   
2.  Disparaging, abusive, profane, or offensive language; materials that would adversely or   
negatively reflect on the Company or be contrary to the Company's best interest; and any illegal  
activities -- including piracy, cracking, extortion, blackmail, copyright infringement, and unauthorized  
access to any computers on the Internet or e-mail -- are forbidden.      
                   
3.  Copyrighted materials belonging to entities other that Seattle Automotive may not be transmitted   
by employees on the Company's network. All employees obtaining access to other companies' or   
individual's materials must respect all copyrights and may not copy, retrieve, modify or forward  
copyrighted materials, except with the permission or as a single copy to reference only. If you find  
something on the Internet that may be helpful to others, do not copy it to a network drive. Instead,  
give the URL (uniform recourse locator or "address") to the person who may be interested in the   
information and have that person look at it on his/her own.        
                   
4.  The Internet is full of programs that can be downloaded, but some of them contain viruses that   
can ( and have) extensively damage our computers. Therefore, refrain from downloading any   
such programs.                
                   
5.  E-mail is not guaranteed to be private or confidential. All electronic communications are the   
property of Seattle Automotive. Therefore the company reserves the right to examine, monitor and   
regulate e-mail messages, directories and files, as well as Internet usage. Also, the Internet is not   
secure so don't assume that others cannot read -- or possibly alter -- your messages.  
                   
6.  Internal and external e-mail messages are considered business records and may be subject to  
discovery in the event of litigation. Be aware of this possibility when sending e-mail within and  
outside the Company.              
                   
Seattle Automotive Distributing's Right to Monitor and Consequences    
                   
All company-supplied technology, including computer systems and company-related work records,  
belong to Seattle Automotive and not the employee. The company will routinely monitor usage   
patterns for its e-mail and Internet communications.         
Since all the computer systems and software, as well as the e-mail & Internet connection, are  
Seattle Automotive owned, all company policies are in effect at all times. Any employee who abuses  
the privilege of access to e-mail to Internet, may be subject to disciplinary action up to and   
including termination.