Page 30 - nou Systems Employee Handbook Final

Employment Offer will prevail. The policies, practices, procedures and any other information
contained in the Handbook are intended to provide general guidance and information only

8.0 COMPENSATION
8.1 Performance and Salary Reviews

Employee Performance Evaluations

nou Systems is committed to maintaining a team of experienced, capable, and motivated
individuals. Therefore, it is nou Systems’ policy to formally appraise the performance of all
employees on a regular basis. The performance evaluation highlights the strengths and areas for
improvement of individual employees so that adequate rewards or corrective action may be
taken. The employee performance evaluation is the primary basis for determining bonuses,
promotions, demotions, and other staffing actions.
The Employee Performance Evaluation Form will be completed by each employee and their
supervisor. If the employee has questions and concerns about the evaluation that cannot be
resolved with the Supervisor, the next level of management should be consulted.

8.2 Salary Adjustments
It is nou Systems’ policy to review on an annual basis the salaries of all employees. Salary
adjustments may be prorated for less than one year of service. The adjustment will be prorated
to account for the fact that the employee’s salary has not been adjusted for more than one year.

8.3 Payment of Wages and Time Reporting
Regular full and part-time employees of nou Systems receive their paychecks 12 times a year.
The timecard cycle is from the first to the last of the month, split between two pay cycles. All
employees that are hourly and are paid for all hours recorded and worked during each timecard
period.

All nSI employees are required to accurately record time worked in the Deltek Costpoint online
timekeeping system. These timesheets are the legal record of time worked and are used for
invoicing the Customer, providing records for payroll purposes (pay checks, taxes, benefits, etc.),
and providing records for all labor costs incurred by the Company (direct or indirect). Employees
are required to enter actual hours worked to the nearest ½-hour at the end of each workday.
This is a Defense Contract Audit Agency (DCAA) requirement. nSI management and DCAA
auditors conduct regular “floor checks” to confirm compliance with nSI and contractual
timekeeping requirements.

Inaccurate or fraudulent timesheets can cause improper invoicing, incorrect recording of revenue
and profit, and could result in loss of a contract, disqualification from future contract awards,
increased DCAA scrutiny, or termination of employment. nSI strives to maintain compliance with
Federal Acquisitions Regulations. If you suspect or witness fraudulent timekeeping practices, you
are obligated to report it immediately to your supervisor or the nSI Chief Executive Officer.

nSI Employee Handbook 30 Rev. 4 (2021))