Page 15 - nou Systems Employee Handbook Final

The Company does not make improper deductions from the salaries of exempt employees and
complies with the salary basis requirements of applicable law. Employees classified as exempt
from the overtime pay requirements of applicable law will be notified of this classification at the
time of hire or change in position.

Permitted deductions – nou Systems will make the following lawful deductions from the pay of
exempt employees:
• Deductions that are required by law, e.g., income taxes.
• Deductions for employee benefits when authorized by the employee; at time of
separation, if applicable, an employee will be responsible for benefit premiums for the
entire month of coverage until end of the month of employment.
• Absence from work for one or more full days for personal reasons other than sickness or
disability.
• Absence from work for one or more full days due to sickness or disability if the deduction
is made in accordance with a bona fide plan, policy or practice of providing compensation
for salary lost due to illness.
• Unpaid disciplinary suspensions of one or more full days imposed in good faith for
workplace conduct rule infractions (except in California and other states where such
deductions or penalties are not permitted by state law).
• Absences for Family Care and Medical Leave (either full or partial day absences).

During the week an exempt employee begins work for the Company or during the last week of
employment, the employee will only be paid for actual hours worked during the current work
week.

Improper deductions - If an employee classified as exempt believes that an improper deduction
has been taken from their pay, the employee should immediately report the deduction to Human
Resources. The report will be promptly investigated and if it is found that an improper deduction
has been made, the Company will reimburse the employee for the improper deductions.

Paychecks
nou Systems pay periods for all employees is semimonthly on the 15th and the last day of the
month. If the payday falls on a federal holiday or weekend, employees will receive their paycheck
on the preceding workday. Employees may authorize direct deposit of their check to a bank,
credit union, etc. Commissions are calculated and paid out on a quarterly basis. Quarterly
commission payments will be issued on the first regularly scheduled pay date following
commission verification and calculation by the Finance Team, and in all events no later than the
last regularly scheduled pay date of the month following the quarter in which the commissions
were earned.

You may make changes to your bank routing or tax information at any time. To update these
items, please adjust the relevant information in the HRIS least 10 days before the pay period for
which you would like the service to begin. You should carefully monitor your payroll deposit
statements for the first two pay periods after the service begins.

nSI Employee Handbook 15 Rev. 4 (2021))