📖 Employee Manual

This Employee Manual is designed to acquaint you with Red Run Cannabis Company and to provide you with information about working conditions, benefits, and policies affecting your employment.

For the purposes of this Manual, "Red Run," "the Company," "we," or "our" means Red Run Cannabis Company LLC, Red Run Cannabis Cultivators LLC, KBR LLC, KBR Retail LLC, Red Run Anchorage Holdings LLC, and each of their respective subsidiaries and affiliated entities.

Red Run is a vertically integrated Alaska cannabis operation comprising retail, cultivation, and manufacturing. The Company holds multiple State of Alaska Marijuana Establishment licenses across retail locations (RRCo-5455, RRCo-KBR, RRCo-910, RRCo-225, RRCo-36A), standard cultivation facilities, and marijuana product manufacturing facilities.

If you have questions about any policy or procedure, speak with your direct supervisor or contact Marc Theiler, President & CEO.

Unless otherwise agreed to in a separate written document entitled "Employment Contract for a Term" signed by an authorized officer of the Company, all employees of Red Run are considered "at-will" employees. This means either the employee or the Company may terminate the employment relationship at any time, for any reason or no reason, with or without cause, and with or without prior notice, to the extent permitted by law.

No supervisor, manager, or representative of the Company other than the President & CEO has the authority to enter into any agreement for employment for a specified period or to make any promises or commitments contrary to this at-will policy.

Red Run provides equal employment opportunities to all individuals regardless of race, color, religion, creed, sex (including pregnancy, childbirth, lactation, and related medical conditions), sexual orientation, gender identity or expression, national origin, ancestry, age, disability (physical or mental), genetic information, marital status, familial status, veteran or military status, citizenship status, or any other characteristic protected by applicable federal, state, or local law.

This policy governs all aspects of employment, including recruitment, hiring, selection, job assignment, classification, compensation, benefits, promotions, demotions, transfers, training, social and recreational programs, discipline, and termination.

Employees are classified as follows:

• Exempt: Employees whose positions meet FLSA criteria and are exempt from overtime pay requirements.
• Non-Exempt: Employees entitled to overtime pay at 1.5× their regular rate for hours over 8/day or 40/week.
• Regular Full-Time: Employees regularly scheduled to work 35+ hours per week.
• Regular Part-Time: Employees regularly scheduled to work fewer than 35 hours per week.
• Temporary: Employees hired for a defined period or project.

All new employees undergo a 90-day introductory period during which performance, reliability, and fit are evaluated. During this period, the employee is not yet eligible for vacation leave or certain other benefits.

Red Run uses Intuit Enterprise Suite with Payroll Elite for time and attendance tracking. Employees clock in and out via the Intuit mobile app on their personal phone.

Departments: RR-Retail, RR-Cultivation, Manufacturing, KBR-Retail. Always clock into the correct department for the entity you are performing work for.

Employees are paid bi-weekly on Friday for work performed during the preceding two-week pay period. Direct deposit is available and encouraged.

Non-exempt employees are compensated at 1.5× their regular hourly rate for hours worked in excess of 8 hours in a single workday or 40 hours in a single workweek, per Alaska Wage and Hour law (AS 23.10.060).

A workweek begins Sunday at 12:00 AM and ends Saturday at 11:59 PM.

Any employee who uses company funds must:

1. Have prior authorization from a supervisor or manager
2. Retain and submit all supporting documentation (invoices, receipts, packing slips) the same business day per SOP-000.000.201

Red Run generally follows a progressive discipline approach: verbal counseling → written warnings → suspension → termination.

Every employee who sells, cultivates, manufactures, tests, or transports marijuana, or who checks customer identification, must obtain a marijuana handler permit from AMCO before beginning employment (3 AAC 306.700).

• Permit must be in immediate possession at all times while on licensed premises
• Permits are valid for three years and must be renewed before expiration
• Red Run tracks permit status in Intuit and CannaOps

All cannabis is tracked from seed through sale using Alaska's mandatory seed-to-sale tracking system, Metrc (3 AAC 306.730).

Red Run enforces 100% identification verification. Every person entering a retail location must present valid, unexpired, government-issued photo ID proving they are 21 years of age or older.

Acceptable forms:

• Unexpired passport
• Driver's license or ID card from any U.S. state/territory, D.C., or Canadian province
• ID card issued by a federal or state agency

This is a summary view of the Employee Manual.

For the complete manual with all 31 pages including Sections 4-6 (Standards of Conduct, Anti-Harassment, Compensation & Benefits), download the full PDF.