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Page 1: EMPLOYEE POLICY HANDBOOK - American Pest Receipt for Employee Policy Handbook ... This manual has been written to serve as the guide for the employer/employee relationship

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EMPLOYEE POLICY HANDBOOK

Revised 01/01/2013 Supersedes all previous editions

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Table of Contents 1 Our History and Philosophy ......................................................................................................... 7

1.1 AMERICAN PEST – A COMPANY HISTORY ............................................................ 7

1.2 OUR STAFF ..................................................................................................................... 7 1.3 OUR CUSTOMERS ......................................................................................................... 7 1.4 PERSONAL RESPONSIBILITIES.................................................................................. 8

1.5 Working Together .................................................................................................................. 8 2 Our Employment Policies and Procedures ................................................................................... 9

2.1 HOW AND WHY YOU WERE SELECTED .................................................................. 9 2.2 DEPARTMENT OF HOMELAND SECURITY REQUIREMENTS ............................. 9

2.3 EQUAL EMPLOYMENT OPPORTUNITY ................................................................... 9

2.4 NON-DISCRIMINATION AND ANTI-HARASSMENT POLICY ............................. 10 2.5 AMERICANS WITH DISABILITIES ACT POLICY STATEMENT.......................... 12 2.6 DRUG-FREE WORKPLACE ........................................................................................ 12

2.7 EMPLOYMENT CATEGORIES ................................................................................... 13 2.7.1 FULL-TIME, REGULAR EMPLOYEES ...................................................................... 13

2.7.2 PART-TIME AND TEMPORARY EMPLOYEES ....................................................... 13

2.7.3 EMPLOYMENT CLASSIFICATION ........................................................................... 13

2.8 YOUR JOB ..................................................................................................................... 14 2.9 TRANSFERS AND PROMOTIONS ............................................................................. 14

2.10 OUR SALARY ADMINISTRATION PROGRAM ...................................................... 14 2.11 HOW TO HANDLE COMPLAINTS AND GRIEVANCES ........................................ 15

2.12 LEAVING AMERICAN PEST ...................................................................................... 16 2.12.1 RESIGNATION ............................................................................................................. 16

We hope you will enjoy working here. Sometimes, however, personal circumstances force a

change in jobs. In such cases, please give Management at least two weeks written notice. This

courtesy will allow us enough time to adjust working schedules and secure a replacement. Also,

your advance notice will reflect favorably on your employment record and will be noted in your

personnel file. Failure to provide two weeks’ notice of your resignation will result in the

forfeiture (non-payment) of any accrued but unused PTO in your bank. Employees who resign

within the first 90 days of employment will not be eligible for payment of accrued PTO. ............ 16

2.12.2 LAYOFF AND RECALL ............................................................................................... 16

American Pest has a history of full employment and we do not expect to have any layoffs.

However, if economic or business conditions create an unusual situation which makes it necessary

to cut back our work force, then each job will be carefully evaluated along with each employee's

record. Qualifications, job performance and length of service are some of the guidelines upon

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which such decisions will be made. The same criteria will be utilized if business conditions

necessitate that we have a recall of employees who were laid off. ................................................. 16

2.12.3 TERMINATION ............................................................................................................. 16

Sometimes an employee is terminated for poor performance, violation of a Company rule or

policy, or for engaging in activity which is detrimental to the best interests of the Company.

Under these circumstances, it may be necessary to end the employment relationship. .................. 16

2.12.4 EXIT INTERVIEW ........................................................................................................ 16

2.13 FINAL PAYCHECK ...................................................................................................... 17

3 Your Hours of Work and Your Pay ............................................................................................ 18 3.1 HOURS OF WORK AND PAYROLL PERIODS ......................................................... 18 3.2 BREAKS......................................................................................................................... 18 3.3 INCLEMENT WEATHER ............................................................................................. 19

3.4 WHY TIME RECORDS ARE IMPORTANT ............................................................... 19 3.5 PAYDAYS ..................................................................................................................... 19

3.6 YOUR PAYROLL DEDUCTIONS ............................................................................... 20 3.7 SHOULD YOU FIND AN ERROR IN YOUR PAY .................................................... 20

4 Your Responsibilities to American Pest ..................................................................................... 21

4.1 YOUR RESPONSIBILITIES ......................................................................................... 21

4.2 UPDATING YOUR PERSONAL INFORMATION ..................................................... 21 4.3 ATTENDANCE ............................................................................................................. 21 4.4 PROFESSIONAL ATTIRE AND CUSTOMER CONTACT ....................................... 22

4.5 PROBLEM SOLVING, TIME MANAGEMENT, AND OTHER TECHNICIAN

RESPONSIBILITIES ..................................................................................................... 23

4.6 TELEPHONE ................................................................................................................. 24 4.7 CONFIDENTIAL NATURE OF OUR WORK ............................................................. 24 4.8 NON-COMPETE AND NON-SOLICITATION AGREEMENTS ............................... 25

4.9 NO SOLICITATION AND DISTRIBUTION POLICY ................................................ 25 4.10 CONFLICT OF INTEREST AND OUTSIDE EMPLOYMENT .................................. 25

4.11 SMOKING ...................................................................................................................... 26 4.12 PERSONAL CONTACTS WHILE AT WORK ............................................................ 26 4.13 AUTHORITY TO ENTER CONTRACTS .................................................................... 26 4.14 PERSONAL USE OF COMPANY SUPPLIES ............................................................. 26

4.15 EMPLOYEE PARKING ................................................................................................ 26 5 General Safety and Security Policies .......................................................................................... 27

5.1 GENERAL SAFETY POLICY ...................................................................................... 27 5.2 ACCIDENTS .................................................................................................................. 27 5.3 RIGHT TO KNOW REGULATIONS ........................................................................... 28

5.4 PERSONAL PROPERTY .............................................................................................. 28 5.5 EQUIPMENT AND HOUSEKEEPING ........................................................................ 28

5.6 WEAPONS IN THE WORKPLACE ............................................................................. 28 5.7 EMPLOYEE SEARCH POLICY ................................................................................... 29

6 Your Employee Benefits ............................................................................................................. 30

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6.1 THE PAYCHECK ISN'T ALL - THERE'S MORE ....................................................... 30

6.2 PAID TIME OFF ............................................................................................................ 30 6.3 YOUR PAID HOLIDAYS ............................................................................................. 32 6.4 BEREAVEMENT LEAVE ............................................................................................ 32 6.5 FAMILY AND MEDICAL LEAVE OF ABSENCE AND MILITARY LEAVE ........ 33 6.6 OTHER LEAVES OF ABSENCE ....................................................................................... 34

6.7 INSURANCE PROTECTION FOR YOU AND YOUR FAMILY ............................... 35 6.8 401(k) RETIREMENT & PROFIT SHARING .............................................................. 36 6.9 FLEXIBLE SPENDING ACCOUNT ............................................................................ 37

6.10 JURY DUTY .................................................................................................................. 37 6.11 VOTING TIME .............................................................................................................. 37 6.12 MILITARY SERVICE LEAVE FOR ACTIVE DUTY ................................................ 37 6.13 MILITARY RESERVE OR NATIONAL GUARD TRAINING LEAVES .................. 38

6.14 YOUR SOCIAL SECURITY INSURANCE BENEFITS AND PAYMENTS ............. 38

6.15 WORKERS' COMPENSATION .................................................................................... 38 6.16 INSURANCE AGAINST UNEMPLOYMENT ............................................................ 38

7 Your Personnel Record ............................................................................................................... 39

7.1 YOUR PERSONNEL RECORD .................................................................................... 39 7.2 BULLETIN BOARDS.................................................................................................... 39

7.3 OTHER INFORMATION .............................................................................................. 39

7.4 E-MAIL & INTERNET POLICY .................................................................................. 39

7.4.1 E-MAIL POLICY ........................................................................................................... 40

7.4.2 INTERNET USE POLICY ............................................................................................. 41

7.5 Cell Phone Use Policy .................................................................................................... 43

7.6 VOICE MAIL POLICY ................................................................................................. 43 7.7 TELEPHONE SERVICE MONITORING PRACTICES – NOTICE TO EMPLOYEES

........................................................................................................................................ 45 8 General Rules .............................................................................................................................. 46

8.1 GENERAL RULES ........................................................................................................ 46

8.2 MISCONDUCT .............................................................................................................. 46

8.3 USE OF COMPANY VEHICLES AND EQUIPMENT ................................................ 47 8.4 TRAFFIC VIOLATIONS ............................................................................................... 48 8.5 ACCIDENTS IN A COMPANY VEHICLE .................................................................. 48 8.6 PROGRESSIVE DISCIPLINE POLICY ....................................................................... 49

8.6.1 VERBAL CORRECTION .............................................................................................. 49

8.6.2 WRITTEN CORRECTION ............................................................................................ 49

8.6.3 TERMINATION ............................................................................................................. 50

9 Summary and Closing Word ...................................................................................................... 51 10 Receipt for Employee Policy Handbook .................................................................................... 52

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Forward

Page: 1 of 1 Revised: 01/01/2013

Whether you have just joined our staff or have been at American Pest for a while, we are confident that you will find our company a dynamic and rewarding place in which to work and we look forward to a productive and successful association. We consider the employees of American Pest to be one of our most valuable resources. This manual has been written to serve as the guide for the employer/employee relationship. There are several important things to keep in mind about this handbook. First, it contains only general information and guidelines. It is not intended to be comprehensive or to address all the possible applications of, or exceptions to, the general policies and procedures described. For that reason, if you have any questions concerning eligibility for a particular benefit, or the applicability of a policy or practice to you, you should address your specific questions to the Human Resources Department. Second, the procedures, practices, policies and benefits described here may be modified or discontinued from time to time. We will try to inform you of such changes as they occur. Finally, some of the subjects described here are covered in detail in official policy documents. You should refer to those documents for specific information, since this handbook only briefly summarizes those benefits. Please note that the terms of the written insurance policies are controlling.

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EMPLOYMENT AT WILL

Page: 1 of 1 Revised: 01/01/2013

Employment at American Pest is not offered, guaranteed, contracted, or promised for any specific length of time. Neither this handbook nor any other company document, confers any contractual right, either express or implied, to remain in the company's employ. Nor does it guarantee any fixed terms and conditions of your employment. Your employment is not for any specific time and may be terminated at will, with or without cause and without prior notice, by the Company; or you may resign for any reason at any time. No supervisor, manager, or other representative of the company (except the CEO) has the authority to enter into any agreement for employment for any specified period of time, or to make any agreement contrary to the above.

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1 Our History and Philosophy

Policy No. 1 Page: 1 of 2 Revised: 01/01/2013

1.1 AMERICAN PEST – A COMPANY HISTORY

In 1925, Paul Calvert Cissel founded the American Disinfectant Company. Upon his death in 1953, J. Harry Britt became President. Mr. Britt died in 1975 and William E. Roll took over as President of the company. In 1976, Apex Exterminating Company, founded by J. R. Byrne in 1933, and then managed by his son Robert Britt Byrne, merged with American Disinfectant Company. In 1979, the company moved its operations, from its longtime location of 928 I St in Northwest Washington, DC to 5201 First Place NE, Washington, DC to make way for the Washington Convention Center. On November 23rd, 1983, the company was purchased from the founder's widow by Robert Byrne, William Roll, Robert Wells, and Jay Nixon and began trading as American Pest Management. W. Wayne White became a partner in January of 1984. In 1986, William Roll was elected Chairman of the Board where he served until his retirement in 1987. Robert B. Byrne was elected President and served in that office until his retirement in 1996. At that time W. Jay Nixon became President and W. Wayne White was named Vice President. In October of 1990, American Pest Management moved its corporate office to 6460 New Hampshire Avenue in Takoma Park, MD, but quickly outgrew the space and opened an additional site in Burtonsville, MD in 2006. In January 2007, Matthew Nixon, formerly COO, was named CEO and became the sole owner of the company. In 2009, the company began doing business as “American Pest.” In January 2011, the Takoma Park and Burtonsville offices merged and moved to 11820 West Market Place in Fulton, MD where the company continues to serve the metropolitan Washington area as one of the oldest and most respected pest management companies in the area.

1.2 OUR STAFF The operations of our Company have always been conducted in a progressive manner. This makes our Company strong, both financially and competitively. A progressive Company can offer the best working relationship to its employees with good pay, good benefits, and good working conditions. The loyalty and good work performance of American Pest employees have been factors in the success of the Company. We consider our employees to be our most valuable asset. It is our hope that our association with you will be satisfying and rewarding and you will strive daily to improve your position within the Company.

1.3 OUR CUSTOMERS The continued growth and success of American Pest depends on the attitude and effort of each employee; maintaining a reputation for quality, integrity, and service is our primary objective. All other purposes of our

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Company are directed toward attaining this primary objective. As far as the customers are concerned, you

represent American Pest. You are expected to embody those characteristics while in the field.

Customer service is key. Your actions and your attitudes can strengthen us or, they can quickly turn a customer

against us. We have everything to gain by being courteous, conscientious, friendly, and helpful; and everything

to lose by being disrespectful, uncooperative, and unpleasant. If just once we fail to serve them well, we may

lose a customer, never to regain their business and trust.

No matter what work you perform within our organization, it is important and vital to our basic objective of

providing quality service to our customers.

1.4 PERSONAL RESPONSIBILITIES

American Pest employees are expected to conduct their personal and non-company affairs in such a fashion that

their duties and responsibilities to American Pest are not jeopardized, and ethical and/or legal questions do not

arise with respect to their association or work with American Pest. Compliance with this code is the

responsibility of every employee of American Pest, both with regard to your own conduct, as well as with

respect to reporting any possible violations by other employees, of which you may become aware.

1.5 Working Together At American Pest we know that we have excellent working conditions and we also know that our wages and benefits are competitive in our market and in our industry. If you have any concerns about your working conditions, your rate of pay, or our benefits, we encourage you to voice your concerns openly and directly to your supervisor, manager, or even the President. Regardless of the nature of your concern, we believe our problems can be worked out best through frank discussion in an atmosphere of mutual respect and cooperation. From experience, we know that when employees deal openly and directly with management, the work environment is positive, communications are clear, and morale is strong. At American Pest, we demonstrate our commitment to you by responding effectively to your concerns. Additionally, in an effort to protect and maintain direct communication with you, we will resist formal organization, within applicable legal limits (of course) and will protect the rights of employees to speak for themselves.

At American Pest, because we’re union-free, you don’t have to pay any union dues, fines, assessments, or other special charges. You also won’t lose any wages because of expensive union strikes and you don’t have union rules or a union boss to answer to, either. We don’t ever want you to have to join a union to keep your job and we want you to know that union activity will never get anyone special preferential treatment. This is our policy and it’s also the law.

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2 Our Employment Policies and

Procedures

Policy No. 2 Page: 1 of 9 Revised: 01/01/2013

2.1 HOW AND WHY YOU WERE SELECTED American Pest's continued growth and your job satisfaction depend, to a large degree, upon you. That is why we carefully select our employees through a written application, personality profiling, skills assessment, comprehensive interviewing and thorough reference and criminal background checks. In addition, we reserve the right to obtain a credit report/history on any employee’s (or applicant’s) nancial background if that individual will have access to or is to perform any work pertaining to company finances. We also require a drug screening prior to (and may require subsequent testing at any time during) employment. In addition, we also request your driving record prior to employment and may do so at any time during the course of your employment. Since many positions within the company require employees to drive company automobiles, it is important that our employees maintain safe driving records. Unsatisfactory or falsified references or any other misrepresentations on pre-employment and/or employment forms, will result in an applicant being denied employment or an employee being terminated immediately. Our purpose is to hire people who want to do a good job. We need people who can carry out the work of our company and find themselves at home here. After careful consideration, we selected you to become a member of the American Pest team. We look forward to a mutually satisfying and rewarding relationship.

2.2 DEPARTMENT OF HOMELAND SECURITY REQUIREMENTS

American Pest is committed to hiring only individuals authorized to work in the U.S. Each employee must provide, within three days of hire, original documents (not photocopies) that verify both identity and authorization to work in the U.S. as specified on the DHS Form I-9.

2.3 EQUAL EMPLOYMENT OPPORTUNITY It is the policy of American Pest to grant equal employment opportunities to qualified persons without regard to race, creed, color, sex, religion, age, national origin, physical or mental handicap, disability, veteran's status, marital status, sexual orientation, citizenship, genetic information or any other protected characteristic as prohibited by federal, state or local law. This policy of Equal Employment Opportunity applies to all policies and procedures relating to recruitment, hiring, compensation, benefits, employee discipline, promotion, termination and all other terms and conditions of employment.

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The Human Resources Department has overall responsibility for this policy and maintains reporting and

monitoring procedures. If you have a question or concern, you should refer it to the Human Resources

Department.

2.4 NON-DISCRIMINATION AND ANTI-HARASSMENT POLICY

American Pest is committed to providing a work environment that is free from discrimination and harassment.

In keeping with this commitment and our commitment to Equal employment opportunity [see previous section],

we maintain a strict policy prohibiting any kind of unlawful harassment and/or discrimination, including racial,

sexual, ethnic, genetic information, disability, age, or religious harassment. American Pest prohibits harassment

in any form, such as verbal, physical, and visual harassment.

Definitions of Harassment

a. Sexual harassment constitutes discrimination and is illegal under federal, state and local laws. For the

purposes of this policy, sexual harassment is defined as unwelcome sexual advances, requests for sexual favors

and other verbal or physical conduct of a sexual nature when, for example (i) submission to such conduct is

made either explicitly or implicitly a term or condition of employment, (ii) submission to or rejection of such

conduct is used as the basis for employment decisions affecting the individual, or (iii) such conduct has the

purpose or effect of unreasonably interfering with an individual’s work performance or creating an intimidating,

hostile or offensive working environment.

Sexual harassment may include a range of subtle and not-so-subtle behaviors and may involve individuals of the

same or different gender. Depending on the circumstances, these behaviors may include, but are not limited to:

unwanted sexual advances or requests for sexual favors; sexual jokes and innuendo; verbal abuse of a sexual

nature; commentary about an individual's body, sexual prowess or sexual deficiencies; leering, catcalls or

touching; insulting or obscene comments or gestures; display or circulation in the workplace of sexually

suggestive objects or pictures (including through e-mail); and other physical, verbal or visual conduct of a

sexual nature. Sex-based harassment--that is, harassment not involving sexual activity or language (e.g., male

manager yells only at female employees and not males)--may also constitute discrimination if it is severe or

pervasive and directed at employees because of their sex.

b. Harassment on the basis of any other protected characteristic is also strictly prohibited. Under this policy,

harassment is verbal or physical conduct that denigrates or shows hostility or aversion toward an individual

because of his/her race, color, religion, national origin, age, disability, alienage or citizenship status, marital

status, creed, genetic predisposition or carrier status, sexual orientation or any other characteristic protected by

law or that of his/her relatives, friends or associates, and that: (i) has the purpose or effect of creating an

intimidating, hostile or offensive work environment; (ii) has the purpose or effect of unreasonably interfering

with an individual's work performance; or (iii) otherwise adversely affects an individual's employment

opportunities.

Harassing conduct includes, but is not limited to: epithets, slurs or negative stereotyping; threatening,

intimidating or hostile acts; denigrating jokes and display or circulation in the workplace of written or graphic

material that denigrates or shows hostility or aversion toward an individual or group (including through e-mail).

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Individuals and Conduct Covered

These policies apply to all applicants and employees, and prohibit harassment, discrimination and retaliation

whether engaged in by fellow employees, by a supervisor or manager or by someone not directly connected to

American Pest (e.g., an outside vendor, consultant or customer).

Conduct prohibited by these policies is unacceptable in any setting, work-related or otherwise; and particularly

in the workplace and in any work-related setting outside the workplace, such as during business trips, business

meetings and business-related social events.

Retaliation Is Prohibited

American Pest prohibits retaliation against any individual who reports discrimination or harassment, or

participates in an investigation of such reports. Retaliation against an individual for reporting harassment or

discrimination, or for participating in an investigation of a claim of harassment or discrimination, is a serious

violation of this policy and, like harassment or discrimination itself, will be subject to disciplinary action up to

and including termination.

Complaint Procedure

American Pest strongly urges the reporting of all incidents of discrimination, harassment or retaliation,

regardless of the offender's identity or position. Individuals who believe they have experienced conduct that

they believe is contrary to American Pest's policy or who have concerns about such matters should file their

complaints with their immediate supervisor, the Manager of Human Resources or the CEO immediately.

Individuals should not feel obligated to file their complaints with their immediate supervisor first before

bringing the matter to the attention of one of the other American Pest designated representatives identified

above.

IMPORTANT NOTICE TO ALL EMPLOYEES:

If you have experienced conduct you believe is contrary to this policy, you have an obligation to take

advantage of this complaint procedure. Also, please note that, federal, state and local discrimination laws

establish specific time frames for initiating a legal proceeding pursuant to those laws.

Early reporting and intervention have proven to be the most effective method of resolving actual or perceived

incidents of harassment. Therefore, while no fixed reporting period has been established, American Pest

strongly urges the prompt reporting of complaints or concerns so that rapid and constructive action can be taken.

The availability of this complaint procedure does not preclude individuals who believe they are being subjected

to harassing conduct from promptly advising the offender that his or her behavior is unwelcome and requesting

that it be discontinued.

Finally, this policy should not, and may not, be used as a basis for excluding or separating individuals of a

particular gender, or any other protected characteristic, from participating in business or work-related social

activities or discussions in order to avoid allegations of harassment. The law and the policies of American Pest

prohibit disparate treatment on the basis of sex or any other protected characteristic, with regard to terms,

conditions, privileges and perquisites of employment. The prohibitions against harassment, discrimination and

retaliation are intended to complement and further these policies, not to form the basis of an exception to them.

If you have any questions concerning this policy, please feel free to contact the Human Resources Department.

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2.5 AMERICANS WITH DISABILITIES ACT POLICY STATEMENT

It is the policy of American Pest to provide a safe and healthful workplace for all employees, and to make

reasonable accommodation to qualified applicants and employees who have a known protected physical or

mental handicap or disability.

American Pest is committed to complying with all applicable provisions of the Americans With Disabilities Act

Amendments Act ("ADAAA) It is the company's policy not to discriminate against any qualified employee or

applicant with regard to any terms or conditions of employment because of such individual's disability or

perceived disability so long as the employee can perform the essential functions of the job. Consistent with this

policy of nondiscrimination, American Pest will provide reasonable accommodations to qualified individuals

with a disability, as defined by the ADAAA, who has made the company aware of his or her disability, provided

that such accommodation does not constitute an undue hardship and/or pose a direct threat to the health, safety

and well-being of themselves or others in the workplace.

American Pest encourages individuals with disabilities to come forward and request a reasonable

accommodation. Employees with a disability who believe they need a reasonable accommodation to perform

the essential functions of their job should contact the Human Resources Department.

2.6 DRUG-FREE WORKPLACE

American Pest is a drug-free, healthful, safe, and secure workplace. As such, we prohibit the

manufacture, distribution, dispensing, sale, possession, and/or use of alcohol, illegal drugs and/or

controlled substances, as well as, the misuse of legal drugs while on company premises, driving a

company vehicle, or during the course of conducting any company business. The unauthorized use of

alcohol on company premises, while on company business, or while driving a company vehicle is also

prohibited.

If an employee reports to work under the influence of alcohol or illegal drugs or uses alcohol or illegal

drugs during work time, the employee will be disciplined, in accordance to the policy, up to and

including termination. Furthermore, any illegal substances found will be confiscated and turned over

to the appropriate law enforcement agency and may result in criminal prosecution.

An employee must immediately notify management if convicted of any drug or alcohol-related

offense. In addition, an employee must notify management of the use of any prescribed

medication that may impair the employee’s judgment, driving ability, performance or behavior.

Furthermore, employees must report to management any suspected job-related illegal drug or

alcohol use by any co-worker or manager.

All current and prospective employees must submit to pre-employment and random drug testing.

Prospective employees will only be asked to submit to a drug test after a conditional offer of

employment has been extended and accepted. Employment with American Pest for prospective

employees is contingent upon the prospect testing negative for tested substances.

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In addition to the random drug testing for current employees, upon reasonable suspicion and/or

following any work-related accident (automobile or otherwise) current employees may be required to

submit to a drug test. If drug testing is ordered by reason of reasonable suspicion or following a work-

related accident, the employee may be suspended without pay until the results of the drug and alcohol

test are made available to American Pest by the testing laboratory.

American Pest’s policy is intended to comply with all state and federal laws governing drug testing and

is designed to safeguard employee privacy rights to the fullest extent of the law. Results of positive

drug tests will be disclosed to Company personnel and/or government agencies on a need-to-know

basis. Test results may be used in arbitration, administrative hearings and court cases arising as a result

of any employment actions taken against an employee as a result of the testing.

Note: All of these policies have the support of the highest levels of our management team. As such,

appropriate corrective action will be taken in situations when it is determined that a violation has

occurred. Disciplinary action may be taken against any employee who willfully violates this policy.

2.7 EMPLOYMENT CATEGORIES

2.7.1 FULL-TIME, REGULAR EMPLOYEES Full-time, regular employees are employees who were hired to work between thirty (30) or more hours

per week.

2.7.2 PART-TIME AND TEMPORARY EMPLOYEES

Employees who are hired to regularly work less than thirty (30) hours per work week are considered part-time

employees. Likewise, employees hired to work for a period of ninety (90) days or less are considered temporary

employees. Even when employees work more than those hours on occasion, the status does not change

On occasion a part-time or temporary employee may be asked to work more or less than what was originally

established. Personnel hired for part-time or temporary work are paid an hourly rate and are not eligible for

most employee benefits.

Management reserves the right to establish work hours, for all employees, which are in the best interest of

the Company.

2.7.3 EMPLOYMENT CLASSIFICATION

It is the intent of the company to clarify the definitions of employment classification so that employees

understand their employment status and benefit eligibility. These classifications are based upon job duties and

do not guarantee employment for any specified period of time and our employment at will policy remains in

effect at all times.

Employees are designated as “exempt” or “non-exempt” under federal and state wage and hour laws.

Non-exempt employees’ wages are calculated on an hourly basis and these employees receive overtime pay at

the rate of one and one-half their hourly wage for hours worked over forty in a week (Sunday at 12:01

a.m.through Saturday at 12:00 midnight is our official work week.)

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Exempt employees’ salaries are calculated on a per-pay-period basis and are excluded from certain wage and

hour laws, including payment of overtime.

2.8 YOUR JOB

Your job duties and responsibilities have been developed in accordance with the needs of the company as well

as good management procedures. Our first responsibility is to our customers. We must be ready to meet any

need they may have and we must remain flexible to adapt to changing situations.

Once established, most of the time your job duties will remain the same; however, you may occasionally be

asked to perform job duties other than your regular job, and when those situations occur you are expected to

cooperate. Management reserves the right to make work assignments to employees as necessary to meet the

goals and objectives of the Company.

2.9 TRANSFERS AND PROMOTIONS

American Pest encourages employees to assume higher-level positions or lateral transfers for which they

qualify. Toward this end, American Pest has a job announcement program that offers employees the

opportunity to bid for certain positions within the company. American Pest reserves the right to decide which, if

any, open positions will or will not be announced/opened to employees before obtaining outside applications,

based upon company needs.

Generally, you must be in your job for at least six months before applying for a change in position. In addition,

you must have a good attendance and punctuality record.

Each employee requesting a transfer will be considered for the new position along with all other applicants.

Each transfer will be judged on an individual basis, depending on the needs of both departments involved. All

final decisions regarding transfers will be made by Management, in conjunction with the Human Resources

Department.

Any one is welcome to apply and we recommend that you discuss it first with your supervisor/manager and the

Human Resources Department so that it may be determined if your skills fit the requirements of the desired job.

We want you to feel free to discuss your career aspirations with your supervisor/manager or the Human

Resources Department at any time.

If after discussing with the hiring Manager and Human Resources Department, it is determined that there is a

basic fit for the position, the Human Resources Department will schedule an interview between the employee

applicant and the hiring Manager/Director.

2.10 OUR SALARY ADMINISTRATION PROGRAM

It is our policy to pay wages and salaries which are comparable to those of other similarly-situated jobs and

services in the surrounding area. We maintain our wage and salary structure by monitoring local and national

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salary surveys or trends. We adjust salaries in accordance with the business and general economic conditions of

the company.

Your individual job classification is determined by the requirements of the job and such factors as responsibility,

skill, training and education. Pay increases are based upon your record of service and performance, your

particular job classification, and other economic factors.

2.11 HOW TO HANDLE COMPLAINTS AND GRIEVANCES

American Pest is interested in how you feel about your job. One of our foremost goals at American Pest is to

ensure that you have a way to express your complaints, problems, opinions, suggestions, or comments. Our

grievance procedure has that aim in mind, and we encourage you to utilize it as your normal way of solving

problems. Your complaints or problems, no matter how large or small, are of concern to us. After all, we know

that if you are satisfied with your job, you will work harder and be of more value to the company, your co-

workers, and yourself.

We want to provide you with an effective and acceptable means of bringing your problems and complaints to

our attention. Therefore, we have established a complaint/grievance procedure. It is our policy to let you tell

your side of the story, and we have no intention of penalizing anyone for expressing his or her point of view.

The sole purpose of our complaint procedure is to help you voice any complaint or problem that you might have.

Remember, the only way we can understand and help you with your problem or complaint is if you come to us

and explain your individual situation.

We do not regard the use of this problem solving procedure as a nuisance, but as an opportunity to correct

dissatisfaction in job related practices and policies and we appreciate your help in this way. Here is how the

procedure works:

Your first step is to discuss the problem with your Manager or Director. Every effort should be made to resolve

the problem at this level to the satisfaction of both parties. However, you have the right to talk with any

Manager or Director with whom you feel comfortable.

If your complaint is not addressed in a reasonably timely manner you may submit your complaint in writing to

the Human Resources Manager. All of the facts and circumstances will be reviewed and, where appropriate, an

answer or final decision will be issued, usually within five (5) consecutive working days. The decision of

Human Resources is final.

This is our open door policy and we want you to feel free to use it. Remember, the only purpose of our

complaint procedure is to give you and the company an opportunity to resolve any problem or complaint. In

order for this open door complaint policy to work, you must want it to work and use it. It is for your benefit and

when problems arise, we would like to have a chance to correct them if we can.

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2.12 LEAVING AMERICAN PEST

2.12.1 RESIGNATION

We hope you will enjoy working here. Sometimes, however, personal circumstances force a change in jobs. In

such cases, please give Management at least two weeks written notice. This courtesy will allow us enough time

to adjust working schedules and secure a replacement. Also, your advance notice will reflect favorably on your

employment record and will be noted in your personnel file. Failure to provide two weeks’ notice of your

resignation will result in the forfeiture (non-payment) of any accrued but unused PTO in your bank. Employees

who resign within the first 90 days of employment will not be eligible for payment of accrued PTO.

2.12.2 LAYOFF AND RECALL

American Pest has a history of full employment and we do not expect to have any layoffs. However, if

economic or business conditions create an unusual situation which makes it necessary to cut back our work

force, then each job will be carefully evaluated along with each employee's record. Qualifications, job

performance and length of service are some of the guidelines upon which such decisions will be made. The

same criteria will be utilized if business conditions necessitate that we have a recall of employees who were laid

off.

2.12.3 TERMINATION

Sometimes an employee is terminated for poor performance, violation of a Company rule or policy, or for

engaging in activity which is detrimental to the best interests of the Company. Under these circumstances, it

may be necessary to end the employment relationship.

2.12.4 EXIT INTERVIEW

Regardless of the reason for separation of employment, in most cases, an exit interview will be scheduled

between you and the Human Resources Manager for the last day of employment. You will be required to return

all Company property including:

Company Vehicle & Keys

Electronic/Computer Equipment (handhelds, laptops, printers etc.)

Cell Phone(s)

Company Security Card

Picture Identification Card(s)

Office Key(s)/Key Fob(s)

Company-issued Credit Card(s)

Uniform(s)

Company Manual(s)

Any other company-owned/issued equipment

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2.13 FINAL PAYCHECK

Terminated employees will receive payment for actual hours worked in the pay period in which their

employment ended, on the next regularly scheduled payday. In most cases, the final paycheck will be a manual

check (even if you previously elected to have your paychecks deposited directly into one or more bank

account(s)). Your final paycheck will be mailed to the address on file with the company. Accrued PTO will not

be paid to employees who have not completed at least ninety (90) days of employment.

Your final paycheck will be mailed to your address on the next regular payday.

If there are unpaid obligations to the Company (e.g., telephone, auto fines, lost or damaged property,) the final

paycheck will reflect the appropriate deductions (where authorized.)

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3 Your Hours of Work and

Your Pay

Policy No. 3 Page: 1 of 3 Revised: 01/01/2013

3.1 HOURS OF WORK AND PAYROLL PERIODS

Our semi-monthly pay periods are as follows: The first day of the month through the fifteenth of the month, and The sixteenth of the month through the last day of the month. Core working hours are 9:00 a.m. to 4:00 p.m., but include (at least for regular, full-time employees) an eight-hour schedule through the adding of time on either or both sides of those hours. These standard hours may be extended during our busiest seasons. Your standard lunch break is thirty minutes. Your particular work schedule will depend upon your job and the department to which you are assigned. Your manager will discuss your specific work schedule with you. Should you ever have any question about when you are to be at work, please ask your manager. Due to the nature of our business, we cannot always establish a definite number of hours to be worked each day. This is especially true for our Technicians. Work periods may begin at the same time each morning, but additional time may be needed at the end of the day to complete the work. When additional hours are required by customer demand and/or general business conditions, employees are expected to cooperate with Management when asked to work overtime. For non-exempt employees, hours worked over forty in a (calendar) week are paid at the rate of one and one-half your regular hourly rate.

3.2 BREAKS As stated in the previous section, American Pest employees receive a designated thirty-minute unpaid break each day. This time is your own and you may use it as you see fit. Employees should check with their manager to determine when to take this thirty minute break. Employees should take the full break period and should not perform any work during it. To ensure the efficiency of operations, employees may not take longer than the time allowed, unless they receive approval to do so from their Manager . Whenever possible, break periods should be taken away from your normal work area. Non-exempt employees are not permitted to accumulate break periods in order to leave work early, or to extend daily breaks. In addition, American Pest will provide a reasonable break time, as needed to employees who are nursing mothers so that they may express breast milk for a nursing child until the child reaches one year of age. American Pest has a designated, private area for this purpose. Such breaks will be “unpaid” and the nursing mother must clock in and out for the breaks.

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3.3 INCLEMENT WEATHER

American Pest will make every effort to maintain normal work hours even during inclement weather. However,

on occasion, it may be deemed appropriate, or even necessary, for the company to open late or not open at all

due to severe weather conditions.

In the case of questionable weather, employees should call the American Pest Inclement Weather Hotline at

240-485-2191 to find out if American Pest will be opening on time, opening at a later time, or closed. The

absence of any instruction on the hotline, with regard to the weather, means that the Company will be open on

time. Changes to schedule and closures will usually be announced by 5:30 a.m.

In the unlikely event that American Pest closes, but the federal government does not, government division

employees must report to work as scheduled.

Generally, non-exempt (hourly) employees will not be paid for opening time modifications and closures unless

they choose to use PTO for the missed hours/days.

If an employee calls out of work or is already scheduled to be off of work on a day when the Company decides

to close or open late for inclement weather, the employee may either take this day without pay (non-exempt

employee only) or will be required to use his/her accrued PTO in order to receive pay for that day.

On days when weather conditions worsen as the day progresses, American Pest may decide to close early. In

such cases, a decision and an announcement will be made via e-mail or by direct (personal or telephone) contact.

You are expected to remain at work until the appointed closing time unless you receive permission from your

Division Director or the CEO to do otherwise.

3.4 WHY TIME RECORDS ARE IMPORTANT

State and federal regulations are very strict about recording the exact number of hours you work. A time record

is required of several classifications of employees. A web-based timesheet system is used to track time worked

and time off for office, administrative, sales and management employees. Punching in on the “web clock”

should be the first thing you do each day at your computer, and the last thing you do before logging out of your

computer at the end of your day. Exempt employees’ pay will not be affected by the fluctuations in daily

recorded hours. However, an exempt employee who is found to repeatedly be working less than 40 hours per

week, will be subject to disciplinary action, up to and including termination of employment.

All other employees (e.g., Technicians and certain other field employees): E-mail hours worked (making sure to

account for all break periods) to [email protected] at the end of every work day.

It is your responsibility to keep accurate records. Falsification of time and attendance records is a serious

infraction and may result in disciplinary action, up to and including termination of employment.

3.5 PAYDAYS

Paychecks are distributed on the 7th and the 22nd of each month, unless those dates fall on a weekend or

holiday, in which case, paychecks will be available on the preceding regular workday. Paychecks are not

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guaranteed to be available before 2:00 p.m. each payday. Employees receiving commission pay will receive

their commission on the second payday of each month.

American Pest is happy to accommodate employees who wish to have their paychecks directly deposited into

one or more of their personal bank accounts. Interested employees should complete a direct deposit request

form and submit it to the Human Resources Department. Please note that direct deposits will not take effect

until the second payroll following submittal of a request.

3.6 YOUR PAYROLL DEDUCTIONS

Your pay does not always represent the full amount of your earnings because we are required to make certain

deductions. For example, we are required to withhold federal and state income tax from your earnings, unless

your completed W-4 states otherwise. These deducted amounts are turned over to the U.S. Treasury and your

state’s Department of Revenue, and you receive credit for it on your income taxes at the end of the year. The

amount of tax withheld is determined by your exemption elections on your W-4. Each year you will receive a

form W-2 showing your total earnings for the year and the amount of taxes withheld. Employees are

responsible for the proper completion of their income tax withholding forms and are encouraged to review and

reconsider their withholding exemptions each year. Changes can be made by completing a new W-4 at any

time, and the appropriate corresponding State income tax withholding form (MW-507, etc.)

In addition, deductions for Social Security and Medicare taxes come out of your paycheck at the rate established

by law. As you know, this rate can change frequently, depending on Congressional action. American Pest pays

one part of your total Social Security tax and you pay the other part.

3.7 SHOULD YOU FIND AN ERROR IN YOUR PAY

We take every precaution to avoid errors in your pay. If an error does occur, however, please inform your

Manager who will determine whether an adjustment is in order. If an error was made, you will receive an

adjustment on or before the next regular payday.

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4 Your Responsibilities to

American Pest

Policy No. 4 Page: 1 of 6 Revised: 01/01/2013

4.1 YOUR RESPONSIBILITIES There are certain responsibilities and obligations that you are required to meet as an employee of American Pest. Your most important responsibility, of course, is to do a good job on the work assigned to you. Your supervisor is responsible for what you do, so it is important to respect his or her experience, listen to his or her instructions, and carry them out promptly and cooperatively. Completing each assignment to the satisfaction of Management is the surest way to make progress. In addition to following instructions, doing a good job requires you to think for yourself, ask questions and make constructive suggestions. You will find that Management is interested in your ideas and will appreciate your efforts to do an outstanding job and improve the Company.

4.2 UPDATING YOUR PERSONAL INFORMATION

If you change residences, phone number(s), and/or emergency contact information, you are required to inform the Human Resources Department, in writing, of such change(s).

4.3 ATTENDANCE In a service business such as ours, it is most important that absences from work be limited to the very minimum. It is also extremely important that we have as much continuity of service as possible; in other words, we try to have the same service person at the same property as much as possible. Absences create the need for a substitute service person, who probably does not know the account as well as the assigned technician. This situation potentially creates problems for the office and unhappiness for the customer. A general meeting for Commercial Division and Residential Division service technicians is held three times per year (dates are determined annually.) Government Division employees meet two times per year (on Martin Luther King Day and Veterans’ Day.) During these meetings, important information regarding various pests, new products/materials, pest control techniques/procedures and company business/policy is presented. It is essential that you be present at these meetings. If you are unable to attend one of these meetings, you must get the approval of your Director. In the event of illness or if for any other reason you are unable to be present and/or on time, please personally call the office no later than two hours before your regularly scheduled report time or the time of your first stop, to notify the individual responsible for scheduling for your division before the start of your shift so that schedule adjustments can be made. Additionally, you must then call the office before 4:00 p.m. that afternoon to indicate your status for the coming day. You must talk to a manager - leaving a message is not acceptable. You are required to call in daily for each day you are going to be absent.

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Absences of three or more days due to illness or injury require a medical excuse and/or a fit for

duty/release to return to work upon return.

Absence is defined as the failure of an employee to report for work as scheduled and absences are classified as

follows:

1. Excused - Excused absences are those pre-approved by your manager prior to the absence and are

granted for such reasons as vacation, continuing education, conferences, personal reasons and sickness

To be approved, an employee must provide sufficient notice, in writing, to his/her manager. Sufficient notice is:

a. One week (7 days) for a scheduled absence of eight (8) hours or less.

b. Thirty (30) days for a scheduled absence of for scheduled absences in excess of eight (8) hours.

An absence may be excused for emergency situations and unexpected illness if the reason if found to be

credible or acceptable by your manager. If it is necessary for you to be absent or late for work because

of illness or an emergency, you must notify your supervisor/manager no later than your scheduled

starting time for that day.

2. Unexcused - Unexcused absences are those which are not approved prior to the absence, are not found

to be credible or acceptable by your manager or when the reason for the absence is unknown.

Unexcused absences will affect your continued employment and advancement.

If you are absent for two (2) consequetive days without proper notice, you will be subject to disciplinary action

up to and including termination of employment.Employees who have established a good record of reporting to

work on time,will not be penalized for an occasional tardiness due to a genuine emergency or factors beyond

your control. Repeated tardiness and/or excessive absenteeism may result in disciplinary action, up to and

including termination.

Employees who have three (3) consecutive days of excused absences because of illness or injury must give

American Pest proof of physician’s care. If an illness or injury prevents an employee from performing their

regularly scheduled duties, a physician’s statement must be provided verifying (a) the nature of the illness or

injury; (b) if and when the employee will be able to return to work, if applicable; and (c) whether the employee

is capable of performing their regularly scheduled duties, and if not, what duties the employee is capable of

performing. Failure to provide the physician documentation as described herein may subject an employee to

immediate termination.

4.4 PROFESSIONAL ATTIRE AND CUSTOMER CONTACT

Your physical appearance and your ability to get along with customers is an obvious reflection of American Pest

and everyone employed here. We expect that you dress and act accordingly. Clothing and professional

appearance are important and contribute to a positive or negative first impression to our customers. Although

first impressions may not be accurate, they are likely to be lasting. Extremes with respect to hairstyle and

grooming may also project an unprofessional image.

Employees who are required to wear uniforms will be provided with uniforms at no cost. It is expected that

when a technician reports to work, that the technician and his or her uniform be free of any stains and chemical,

tobacco, or body odors. Because of the nature of our business, frequent bathing, and laundering of uniforms is

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necessary. While on Company time, you must be properly attired. This means dressed in a Company issued shirt and pants (i.e., uniform,) a belt and appropriate work type shoes/boots (brown or black leather) at all times. No athletic shoes/sneakers are permitted to be worn. No hats or other adornments not issued by American Pest will be permitted. Any additional clothing worn by Technicians (for warmth or other reasons) must be worn under company issued uniform so that the American Pest logo is visible at all times. Uniforms must be returned when you leave the Company. In addition to the above, We have found that long hair and certain pieces of jewelry may pose a safety hazard to technicians. For this reason, employees in field positions,) long hair must be styled or secured at or above your shoulders/collar and jewelry (other than a wedding band) are not permitted. In addition, Technicians must have in their possession all Pest Control Operator Identification cards issued by the Company. Office and administrative employees are required to wear appropriate attire and to avoid any unprofessional attire. Appropriate attire for men includes: khakis or dress slacks and a dress shirt or polo. For women it includes, dresses, skirts, khakis, slacks, capris, blouses, and polos. Tee shirts, tank tops/undershirts, strapless tops, jeans, shorts, athletic shoes/sneakers, and rubber/plastic flip flops are not allowed. Employees must refrain from wearing clothing that is too revealing, including short skirts/dresses, low cut tops/blouses and clothes that fit to tightly. Office and administrative employees observe “Casual Fridays,” on which tasteful denim clothing (jeans) is allowed. Again, no athletic shoes/sneakers are permitted. Speak to a Manager about the dress code policy for more specific details. The dress code will remain in effect throughout the year unless it is relaxed by Management for seasonal reasons or for specific functions. Management reserves the right to interpret and apply this dress code with respect to employee attire and professional appearance. Employees who do not follow this policy may be sent home to change or, if appropriate, other disciplinary action may be taken.

4.5 PROBLEM SOLVING, TIME MANAGEMENT, AND OTHER TECHNICIAN RESPONSIBILITIES

Problem solving refers to a technician's ability to handle a wide variety of challenges that range from problems with scheduling to the identification of insects. From time to time it will be necessary to deal with pest problems other than the usual ones. The ability to recognize other types of pests and the damage they cause, and to be able to treat when possible, makes you more valuable to the Company. As a technician, you need to be able to organize your work in such a way that you can accommodate timed appointments. It is essential that your work schedule for the day be checked and prioritized before leaving for your first stop to look for any conflicts. On occasion, additional jobs or emergency-type situations arise or an absence or change in personnel occurs that may impact your workday and workload. It is expected that you be cooperative about accepting additional work or changes in work. Although there will be times when it is not possible to complete all assigned work, the work is scheduled so that barring any unforeseen problems, you should be able to complete the work assigned. If it appears as though the day’s assigned work cannot be completed, you must call the office immediately to report this to your manager. As a service technician, you are responsible for maintaining your route in a pest-free condition. When problem situations arise, you should recognize these problems and ask for help, if needed. If a decision has to be made about which stop(s) not to

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service, and you are not absolutely sure, you should call your manager for instructions. Remember, the ability to plan the order of service on a given day to minimize excess travel improves efficiency and is, therefore, beneficial to both you and the Company. It is required that your relationship with your co-workers to do your job well It is required that each employee show respect for all supervisory and management personnel. Not everyone can be in charge, and the ability to respect the position of those in authority is very important. It may not be possible to get along with everyone, but it is necessary to try and have the type of professional relationship with our customers that will allow you to do your job efficiently. If personality conflicts exist, they should be reported to our office and you should refrain from any word(s) or action(s) that may reflect poorly on the Company. From time to time, you will be asked questions that require a thoughtful answer. Questions such as, "I'm pregnant, is the spray dangerous?" must be answered cautiously. This is just an example of the kind of question that is sometimes difficult to answer, and if you are not sure of the best answer, you should call the office or have the client call the office. Occasionally, additional opportunities for service will present themselves to you. It benefits both the Company and you to be aware of these opportunities, and to handle such additional requests for service. An example is seeing evidence of rats burrowing on the outside of a building on a regular service visit. These kinds of things are potentially profitable, but keep in mind, we only want to provide the service if it is necessary. A desire to improve makes an employee a valuable part of the Company.

4.6 TELEPHONE The telephone is one of our most important pieces of equipment. The way in which you answer or use the telephone has great impact on our customer relations and our services to the public. When answering the telephone, you should always use a pleasant and friendly voice and you should project a willing attitude. American Pest does not object to your making or receiving an occasional personal call, but keep it brief. Excessive use of the phones for your personal use is a violation of Company policy and may result in disciplinary action. Employees will be responsible for payment of extra charges (e.g., 411-Information, International calls/texts) incurred to their assigned cell phones.

4.7 CONFIDENTIAL NATURE OF OUR WORK

During your employment with American Pest, you may have access to information of a highly sensitive and confidential nature. This information will be contained in Company records, correspondence with customers and other similar documents. As an employee of American Pest you are in a position of trust and you have an obligation to this Company and to its customers to see that the confidentiality of this information is strictly

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maintained and protected. Unauthorized use or disclosure, even if inadvertent, compromises both you and the

Company and seriously erodes customer confidence.

Information regarding American Pest or its customers, including the names of these customers, or descriptions

of their business with us, is considered confidential and proprietary information. You may not disclose,

duplicate or use this information except as required in the performance of your duties with American Pest. This

includes, but is not limited to, taking photographs of our customers’ homes and businesses, posting such pictures

or discussing conditions of our customers’ homes and businesses on social media websites, etc.

4.8 NON-COMPETE AND NON-SOLICITATION AGREEMENTS

All employees will be required to sign a non-compete and non-solicitation agreement at the beginning of

employment and may be asked to sign another at various times during employment. The agreement is that you

may not directly or indirectly solicit or accept any American Pest customer or account for pest control services

while employed with us and for two years after employment with American Pest ends.

4.9 NO SOLICITATION AND DISTRIBUTION POLICY

To ensure that all of us are permitted to devote our full attention to our duties, our Company policy is that

solicitation or distribution of non-Company literature by employees or non-employees during scheduled or non-

scheduled work time on Company premises is strictly prohibited. Failure to comply with this policy is grounds

for disciplinary action, up to and including termination.

4.10 CONFLICT OF INTEREST AND OUTSIDE EMPLOYMENT

The Company would prefer that employees not obtain part-time work in addition to working at American Pest,

although we realize that it's sometimes necessary in unusual situations. Employees are expected to conduct

business according to the highest ethical standards of conduct.

Please remember that if you are employed on a full-time basis at American Pest, your first obligation is to the

company, including regular work hours, as well as any meeting requiring your attendance. Therefore, should

you find it necessary to work a second job, please discuss it with Management and be sure it will not create a

scheduling problem or a conflict of interest. Employees must devote their entire work time and energy to the

service of the American Pest. Solicitation of customers for business other than for American Pest services is

absolutely prohibited and may result in immediate termination.

No employee shall directly or indirectly maintain any outside business or financial interest or engage in any

outside business or financial activity which conflicts with the interests of the Company or interferes with job

performance.

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4.11 SMOKING

American Pest respects your right to conduct your personal life as you wish. As an employee, however, you

must adhere to our policy while working: Smoking is not permitted at any time, in any area of--or within 50 feet

of the entrances to--American Pest’s offices. Likewise smoking is prohibited inside company vehicles and at

any of our customer sites.

Failure to adhere to this policy will result in disciplinary action, up to and including termination.

4.12 PERSONAL CONTACTS WHILE AT WORK

It is expected that personal visits to employees by friends or relatives will be held to a minimum and be of short

duration because of the disruptive effect they have on work schedules.

4.13 AUTHORITY TO ENTER CONTRACTS

No employee, other than an officer duly authorized by the CEO, has the authority to enter a contract on behalf of

the Company. Employees may not, therefore, incur any unauthorized expense on the part of the Company.

4.14 PERSONAL USE OF COMPANY SUPPLIES

American Pest stationery and all other supplies are to be used for authorized business only. These items may not

be used for personal use or other non-company use without express permission from Management.

4.15 EMPLOYEE PARKING

Parking at our office is free. Please note that there may be parking spaces marked reserved and/or designated

for disabled persons. Employees are not authorized to park in a reserved or designated parking space.

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5 General Safety and Security

Policies

Policy No. 5 Page: 1 of 3 Revised: 01/01/2013

5.1 GENERAL SAFETY POLICY (The information in this handbook does not represent our entire safety program. Please see your Manager for additional safety instructions and printed materials.) In order to provide a safe and healthful work environment for employees, customers, and visitors, the Company has established some safety guidelines. The Company provides information to employees about workplace safety and health issues through regular internal communication channels such as supervisor-employee meetings, bulletin board postings, memos, or other written communications. Employees receive periodic workplace safety training. This training covers potential safety hazards and safe work practices and procedures to eliminate or minimize hazards. Each employee is expected to obey safety rules, use protective personal equipment (when appropriate,) and to exercise caution in all work activities. Employees should immediately report any unsafe condition to the appropriate supervisor or manager. Employees who violate safety standards, cause hazardous or dangerous situations, or fail to report or remedy such situations, may be subject to disciplinary action, up to and including termination. Again, the Company's policy is to provide a safe and healthful work environment for all employees. It is expected that all employees will comply with all safety and health regulations, whether established by Company management or by federal, state, or local law.

5.2 ACCIDENTS When an accident occurs on Company property, whether to customers, visitors, or employees, the matter must be referred immediately to Management, regardless of how insignificant the accident may appear. This is necessary in order to provide immediate medical aid to an injured person and to facilitate a full and prompt report to the insurance company. Employees involved in an accident will be sent for a drug and alcohol screening within a reasonable, specified time period following a workplace accident. When an accident involves customers, employees, or visitors, employees should not make any statements to persons outside the Company as to your opinion of the cause of the accident or who is at fault. Workplace injuries and illnesses to employees should be reported to the Human Resources Manager and will be covered under workers’ compensation. (See the Workers’ Compensation section of “Your Employee Benefits.”)

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5.3 RIGHT TO KNOW REGULATIONS

As an employer committed to complying with the federal Hazardous Communication Standard (HCS), it is the

policy of American Pest to:

1. Inform employees of potentially hazardous chemicals in the workplace.

2. Make available Material Safety Data Sheets (MSDS) which help explain hazards.

3. Provide you with initial and annual instruction on such hazardous chemicals in the workplace.

Additional questions should be posed to your Manager or Director.

5.4 PERSONAL PROPERTY

Any personal property or items brought onto Company property should be properly maintained in a secure area.

American Pest is not responsible for any personal property or items that are damaged or stolen. Employees

accept sole responsibility for the safety and/or maintenance of any personal property or items brought onto

Company premises. In addition, the Company reserves the right at any time to approve or disapprove of any

personal property or items an employee may have on Company property.

5.5 EQUIPMENT AND HOUSEKEEPING

American Pest has made a considerable investment in equipment which is designed to enable you to do your

work more efficiently. Your cooperation in the care and use of this equipment is necessary to maintain it in

good condition. You may be held responsible for the cost of the repair and/or replacement of lost/damaged

company equipment, when due to your negligence. If any of our equipment is working improperly or is not the

best equipment for the job, please notify Management immediately. A few timely repairs may prevent complete

breakdown of the equipment.

One indication of good housekeeping is the condition and appearance of one’s work area. Orderliness in your

work area reduces accidents, improves health conditions, reduces fire hazards, adds to the efficiency of your

work, improves the quality of our service, and portrays a favorable image to our customers. We can all help by

placing trash and recyclable materials in the containers provided and by applying a few simple rules of

cleanliness. It is everyone's responsibility to help keep American Pest clean and in good order.

Waste of time, materials, equipment and/or utilities is costly to the Company and to you. You can make

American Pest and your individual job more successful by monitoring the amount and quality of the work you

produce. Each employee should eliminate waste of time and materials wherever possible. In the long run, we

will all benefit by reducing operating costs and all employees are expected to help the company control costs.

5.6 WEAPONS IN THE WORKPLACE

Employees of American Pest are not allowed to have weapons such as large knives (e.g., butcher, hunting,

etc.,) guns or rifles in their possession on American Pest property or at any time while at work. A small

pocket knife is permissible. "Possession" includes in a private vehicle parked on Company property, in a

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Company vehicle, in desks, lockers, or tool boxes, in an employee's personal possession, or anywhere else

on Company property, except as authorized. Employees who violate this policy may be subject to

disciplinary action, up to and including dismissal.

This policy does not apply to company-issued weapons utilized in the performance of bird removal.

5.7 EMPLOYEE SEARCH POLICY

American Pest reserves the right to conduct an investigation of missing property or other suspected rule or

policy violations. When that occurs, it may become necessary to conduct a search of an employee's working

area and/or employee possessions. It must be understood that offices, desks, lockers, and file cabinets are

the property of American Pest and are subject to search by the Company at any time. In addition,

employee packages, lunch boxes, bags, and vehicles are subject to search at any time while they are on

Company premises.

Employees are expected to comply with this policy and cooperate with Company investigations including

employee searches. Employees who do not cooperate will be subject to disciplinary action.

If American Pest conducts an investigation which involves an employee search, it does not necessarily imply

that an individual employee is guilty. It is simply an investigation to determine if any person is in unauthorized

possession of Company property or the property of another employee, customer or other person. Employee

searches will be conducted with prudence and propriety. It is not the intention of this policy to embarrass or

humiliate anyone, but simply to protect the rights of all of us and help make the workplace more safe and

comfortable. We appreciate your help in complying with this policy. Failure to comply with this policy may

result in disciplinary action, up to and including termination.

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6 Your Employee Benefits

Policy No. 6 Page: 1 of 7 Revised: 01/01/2013

6.1 THE PAYCHECK ISN'T ALL - THERE'S MORE

Your paycheck is important but it does not represent all of the compensation you receive from American Pest. American Pest has established a variety of employee benefit programs designed to assist you and your eligible dependents in meeting the financial burdens that can result from illness and disability, and to help you plan for retirement. These benefits include Paid Time Off, paid holidays, and various types of insurance. We want you to have a full understanding of your employee benefits so we are devoting a section to the discussion of each one. If you have any questions concerning any of your employee benefits, contact the Human Resources Manager. This portion of the Employee Handbook contains a very general description of the benefits to which you may be entitled as an employee of the Company. Please understand that this general explanation is not intended to, and does not, provide you with all the details of these benefits. Therefore, this Handbook does not change or otherwise interpret the terms of the official plan documents. Your rights can be determined only by referring to the full text of the official plan documents, which are available for your examination from the Human Resources Department. To the extent that any of the information contained in this Handbook is inconsistent with the official plan documents, the provisions of the official documents will govern in all cases. Please note that nothing contained in the benefit plans described herein shall be held or construed to create a promise of employment or future benefits, or a binding contract between the Company and its employees, retirees or their dependents, for benefits or for any other purpose. All employees shall remain subject to discharge or discipline to the same extent as if these plans had not been put into effect. As in the past, American Pest reserves the right, in its sole and absolute discretion, to amend, modify or terminate, in whole or in part, any or all of the provisions of the benefit plans described herein, including any health benefits that may be extended to retirees and their dependents. Further, the Company reserves the exclusive right, power and authority, in its sole and absolute discretion, to administer, apply and interpret the benefit plans described herein, and to decide all matters arising in connection with the operation or administration of such plans. For more complete information regarding any of our benefit programs, please refer to the Summary Plan Descriptions, which are available from the Human Resources Department.

6.2 PAID TIME OFF In addition to nine paid holidays per year, the company provides Paid Time Off (PTO) leave based on an employee’ s length of service. PTO is accrued to regular employees (as defined in Section 2.7.1) each pay period and becomes a bank of hours from which you may draw when you take time away from work. The PTO

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is accrued per pay period (based on the original employment anniversary date and employment status) as

follows*:

Years of Service

Accrual Rate for

Employees who work

at least 40 hours/week

Accrual Rate for

Employees who work

30-39 hours/week

During Year One 80 Hours 60 Hours

After five years 120 90

Ten + years 160 120

Absences from work of one (1) hour or more will be paid from the employee’s PTO balance. If a non-

exempt employee is absent from work and has used all of his/her PTO, the employee will not be paid for

the time off. Refer to the Attendance policy in Section 4.3 of this handbook. Under certain circumstances,

an employee will be allowed to “borrow” against future PTO earnings.

To enable us to schedule work properly, we need adequate notice of any leave time. Thirty (30) days advance

written notice is required prior to taking Paid Time Off in excess of eight (8) hours. One week’s notice

required (whenever possible) prior to taking eight hours or less of Paid Time Off. Eight hours or less of

PTO will usually be granted with twenty-four 24 hours’ notice.

In the event of multiple requests for PTO for the same periods of time by different employees, the request that is

received first will usually be granted, however the manager has discretion in this case.

Employees may accumulate and carry over a maximum of two hundred forty (240) hours of PTO. Upon

reaching 240 hours of accrued PTO, accrual will end until your balance is under the 240 hour cap.

PTO may be taken in ½ hour increments. With the exception of supervisors and managers, employees may

“cash out” unused PTO with the following stipulations: Cash outs of PTO will be made in units of forty (40)

hours only (i.e., 40, 80, 120, etc.) and a minimum remaining PTO balance of forty (40) hours after cash out is

required.

Due to increased work volume of the Spring and Summer seasons, American Pest limits the use

of PTO between the months of April through September. During this period, employees will be

limited to no more than one week (40 hours) of time off (PTO) at one time.

Employees will be paid on the regular pay day(s) while on PTO. Hourly employees will be paid at their straight

time rate and salaried employees will receive their regular salary rate, converted to an hourly rate, for each hour

of PTO leave used. Employees who earn commission or production bonus pay will be paid PTO at an hourly

rate based upon a calculation that has been pre-determined by each Director. Such calculations will take into

account an employee’s average production/commission. Please consult with your Director for full details if you

receive production or commission pay on a regular basis.

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6.3 YOUR PAID HOLIDAYS

Holidays are days on which you will normally not be required to work, but for which you will be paid, if you are

eligible. At American Pest, we observe nine paid holidays each year. Eight of these holidays are observed by

American Pest and offices are closed, and one is a floating holiday which may be taken on a day of each

employee’s choosing with approval of their manager. Employees are eligible for these paid holidays

immediately upon hire (i.e., without any wait time.) To be eligible for holiday pay, you must: (1) be a

regular (full- or part-time) employee on the active payroll, and (2) work the last regularly scheduled day

before the holiday and the first regularly scheduled day following the holiday or be on an excused, paid

absence for those days.

Some employees (particularly those in our Government division) may be required to work on one or more of

these holidays. Those employees will be given another day off or receive pay in lieu of the day off. Hourly

employees who are required to work on a holiday will receive pay for the holiday in addition to pay for the

hours worked on that day (double time).

The holidays on which our office is closed are as follows:

New Year's Day Labor Day

Presidents’ Day Thanksgiving Day

Memorial Day Day After Thanksgiving

Independence Day Christmas Day

Holidays falling on weekends will be observed on designated days which may be changed to coincide with

Company working hours or for other reasons.

Only employees who were hired on or before May 31 are eligible for the floating holiday in the year in which

they are hired. Employees must request their floating holiday thirty (30) or more days in advance to ensure

adequate coverage of his/her work. Unused floating holidays do not carry forward into the next year.

Part-time employees who work at least 30 hours per week (but less than 40) will be paid six hours for each

scheduled holiday. An approved absence is defined in the section of this handbook entitled “Being Present and

On Time.” American Pest reserves the right to change this holiday schedule if necessary and prudent to the

operation of the Company. If additional time is needed to accommodate religious holidays, your manager will

make every effort to accommodate your request. Requests for such holidays will be unpaid unless taken as a

floating holiday.

6.4 BEREAVEMENT LEAVE

Full-time (and part-time employees who work at least 30 hours per week) will be granted up to three days paid

leave in the event of the death of a member of the immediate family. Immediate family is defined as including

your spouse, children, parents, brother or sister.

One day of paid leave will be granted to such employees in the event of the death of a member of the extended

family. For the purpose of this policy, extended family will be defined as grandparent, grandchild, parent-in-

law, and brother- or sister-in-law.

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6.5 FAMILY AND MEDICAL LEAVE OF ABSENCE AND MILITARY LEAVE

As an employee of American Pest, you may be eligible for a leave of absence when you need extended time

away from work because of the birth, placement for adoption or foster care of a child; because of the serious

health condition of a spouse, child, or parent; or because of your own serious health condition. If you have are

employed at a location with 50 or more employees within a 75 mile radius, been employed for at least one year,

and worked 1250 hours during that year, you may be granted a leave of absence of up to twelve weeks.

Additionally, if you are a military caregiver (i.e., you are the family member responsible for caring for a military

person who has suffered an injury, for example) and/or for military exigency, you may be granted a military

leave of up to 26 weeks under this Act. In any of the above cases, the leave is without pay (unless you use your

accrued PTO) and must be approved by Management.

As soon as you become aware of the need for leave, you must inform Management so that proper arrangements

can be made and the required paperwork be completed. If the leave is for the birth or placement for adoption or

foster care of a child, it must be taken within twelve months of the birth or placement and may be broken up

only with the approval of management. If the leave is due to your own serious illness or that of a family

member, the leave time may be broken up if medically necessary (certification is required here). In this case,

the company reserves the right to temporarily transfer you to an alternative position which better accommodates

the recurring periods of leave, but without any decrease in pay.

Employees requesting leave due to their own serious illness or that of a family member may be required to

provide certification of the health condition. This certification must include the approximate date on which the

serious health condition in question began; the probable duration of the condition; appropriate medical facts

supporting the certification; and a statement that the employee is needed to care for a spouse, parent, or child

(along with an estimate of the time required), or that the employee is unable to perform his or her job functions.

American Pest also reserves the right to require a second or third medical opinion. Employees may also be

required to submit additional re-certifications.

Eligible employees may request up to twelve weeks of leave within the twelve month period of time dating

backward from the date the leave is used. The leave will not be paid except that employees with accrued unused

Paid Time Off leave are required to use their PTO. This time is taken first and is subtracted from the twelve

week total.

Subject to the terms, conditions, and limitations of the applicable plans, American Pest will continue to provide

its portion of any health insurance benefit the employee was receiving prior to the leave throughout the duration

of the leave. Employees must submit payment (via check made payable to “American Pest” for their portion of

the premiums for any benefits while on leave (e.g., group insurance premiums.)

Paid holidays are not provided to employees who are on family medical leave. Likewise PTO and other benefits

do not accrue during a leave.

If you return to work by the predetermined return date, you will be restored to your previous position or an

equivalent position with no loss of benefits which had accrued at the commencement of the leave. When you

return to work, if your leave was due to your own serious health condition, you must provide the company with

medical certification verifying your ability to return to work and stating any limitations which might apply.

Should a current employee become disabled, this leave of absence policy, as well as our policies on disabilities

and medical conditions will apply.

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Employees who fail to return to work promptly at the end of the approved leave period will be presumed to have

voluntarily resigned. Reinstatement of key employees may be denied.

While on leave, employees may be required to return all company equipment.

Employees on FMLA cannot take employment elsewhere.

Employees are required to inform Human Resources and/or their supervisor of all updates to return.

6.6 OTHER LEAVES OF ABSENCE

We recognize that employees may have a need to be excused from work in order to attend to personal situations

beyond their control. American Pest wants to accommodate such needs when doing so will not cause a

significant hardship on the Company. Below are some examples of circumstances under which employees may

request critical personal leave:

victim of domestic violence

victim of criminal acts

victim of natural disasters

family members of military service members

exhaustion of FMLA

This leave is supplemental to any leave that may be required under applicable laws such as the Family and

Medical Leave Act (FMLA) and the Uniformed Services Employment and Reemployment Rights Act

(USERRA). You should investigate your leave rights under such laws before resorting to the leave provided for

in this policy.

Such approved periods of leaves will be unpaid except where an employee elects to use accrued paid time off

(PTO) to offset a loss in pay.

Confidentiality

A request for leave by an employee who has requested confidentiality as to the need for leave under this policy

will be respected, kept confidential, and restricted to those with a need to know (e.g., department manager,

Director and HR.) In other cases, confidentiality and propriety are to be observed by all managers and

employees insofar as possible. In cases where employees have communicated to co-workers their need for a

leave, there should be no expectation of confidentiality.

Requesting Critical Personal Leave

Requests for leave must be made in writing, must be for a specified period, and directed to your Director.

Advance requests for leaves with documentation supporting the leave will be given priority status in

determining leave time available and approval.

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All leave requests should be accompanied by documentation supporting the necessity for the leave when such

leave can be anticipated. When prior notice is not possible, documentation verification must be provided within

a reasonable time period following the request.

Due to the varying leaves covered under this policy, verification of need for leave may be provided through a

numerous sources. Examples: court documentation for any criminal proceeding in which the employee (or

household family member) was a victim; military orders for induction or long-term deployment, insurance

company documentation of major sustained loss or damage to a residence or other property of the employee;

physician documentation of necessity for medical care or disability; local social welfare, victims assistance

group, or church certification of need for physical shelter in cases of abuse.

American Pest reserves the right to restrict leaves or the duration of a leave if the leave will cause a great impact

on business or departmental operation. In emergency circumstances, an employee may submit a request for

leave under this policy without supporting documentation; however, documented leave requests will receive

priority attention in advance of undocumented leave requests.

Leave Duration

Critical personal leaves may be taken in a continuous block of time or sporadically as dictated by the period

specified in the documented leave request. Under no circumstance will leave be approved in advance for

continuous periods beyond one semi-monthly payroll period; however, employees may submit subsequent

documented leave requests for continuation of leave when necessary. Given the types of leave covered by this

policy, an employee could request leave for

a court proceeding in which the employee (or family member) is required to participate including any

sentencing or other disciplinary action proceeding where the employee (or family member) was the

victim,

a period of disability or absence to receive medical assistance due to a criminal act (involving either an

employee or household family member) or natural disaster,

a period of absence necessitated to mitigate damages to an employee residence or personal property

which resulted from a natural disaster,

for household family members (parent or offspring), an absence necessitated to begin enlistment in a

branch of the U.S. military or where a service member has been activated for military deployment.

When critical personal leaves require sustained periods of absence, the company will permit health, dental, and

vision insurance continuation as well as flexible spending account participation during such periods of leave to a

maximum of one month. Employees should establish in advance, a contribution payment schedule with HR

prior to the commencement of leave. 401(k) contributions will be suspended during periods of unpaid leave and

reinstated upon return to active status. Please note that the continuation of insurance does not apply to

employees who have exhausted FMLA per our insurance contracts.

6.7 INSURANCE PROTECTION FOR YOU AND YOUR FAMILY

Regular full-time and part-time employees (who work at least 30 hours per week) of American Pest are eligible

to apply for participation in our group health, dental and vision insurance plans effective on the 1st day of the

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month following 30 days of employment. American Pest pays the first $150.00 toward the cost of the company-

sponsored medical insurance plan, per month. The entire amount of the premium over and above the company’s

contribution must be fully paid by you and will be deducted from your pay. The entire cost of the dental and

vision plans are, likewise, paid by you. Your contribution towards any health, dental, and/or vision premium is

deducted from your payroll check with before-tax dollars in accordance with IRS Code Section 125.

You will receive a booklet which will explain the benefits you receive under our group medical insurance plan,

and we suggest that you review it thoroughly so that you can understand the type and amount of benefit which

you receive. If you have any questions regarding these benefits, contact the Human Resources Manager.

Employees will be given the opportunity to enroll in, terminate or make changes to their health, dental and

vision elections at “open enrollment” one time each year (or whenever there is a qualifying life change event,

such as marriage, divorce, the birth of a child, the loss of coverage elsewhere, etc.)

Group short- and long-term disability and life insurance are provided by American Pest for all regular

employees who work at least 30 hours per week. Additional (voluntary) life (for you and your dependents) at

group rates after 90 days of employment. Please note that this is the only time in which you can apply and be

guaranteed acceptance. There is no “open enrollment” period for these voluntary plans and should you decline

to participate when first eligible and wish to apply for the coverage at a later time, you will be subject to

underwriting and will have limitations on your coverage, if approved. Inform the Human Resources Department

if you are interested in enrolling in one or both of these programs no later than 75 days after employment.

American Pest will supply you with the necessary forms which are to be used to make claims under these

insurance programs.

Insurance for you and any dependents will terminate at the end of the month in which termination of your

employment with the Company occurs, in accordance with our insurance plans. However, you and your

covered dependents may continue coverage and remain members of the health, dental, and/or vision plans after

you leave the Company, for a period of 18-36 months, under the provisions of COBRA. You will receive

details of this option by mail after you leave the company.

6.8 401(k) RETIREMENT & PROFIT SHARING

The company sponsors a 401(k) Retirement & Profit Sharing Plan for eligible employees. You are eligible for

participation on the first day of the month after 90 days of employment and will be automatically enrolled in the

plan, on that date, at a contribution rate of 3% of your gross income, unless you expressly request not to be

enrolled. If you choose not to participate when first eligible, you may subsequently join the plan on the first of

the month of any quarter. American Pest intends to match a percentage of your savings contribution each year.

The Company’s matching 401(k) contribution will be determined by the Board of Directors. Only those

employees who meet the minimum number of hours worked in a year (1000 or more) will be eligible for the

company matching contribution. The plan has a six-year vesting schedule which means that you don’t own all

of the company profit sharing match until you have worked for the company for at least six years.

In addition to the “pre-tax” 401(k) plan described above, a Roth 401(k) option in which you may make “after-

tax” contributions, is available as well. Both plans are designed to help you save for retirement and, as such the

money contributed to the plan is not available to you, except in rare, hardship situations, by employee loan (of

up to ½ of your vested balance,) and when you leave the company.

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6.9 FLEXIBLE SPENDING ACCOUNT

In accordance with Section 125 of the IRS code, American Pest employees may elect, at open enrollment time,

to participate in the Flexible Spending Account Plan (FSA). With the healthcare FSA, you pay for your out-of-

pocket medical, dental, and vision expenses (such as co-pays, deductibles, co-insurance, bandages, etc.) with

pre-tax dollars that you pre-elect to come out of your check each pay period and go into an account for your and

your dependents’ out-of-pocket expenses. With the dependent care FSA, you can pay for childcare (daycare)

expenses incurred so that you (and your spouse, if married) can go to work, with pre-tax dollars. Just like with

the medical Flexible Spending Account, you may make changes to the pre-determined election amount only one

time per year (at “open enrollment”) except in the case of certain qualifying life change events.

6.10 JURY DUTY

If you are summoned for jury duty, please provide your Director with verification of assignment of duty as soon

as possible so that we can arrange for another employee to take over in your absence. The calculation of

commissions for employees who perform Jury Duty will be made based on the same formula used to calculate

commissions for months in which PTO is taken.

Employees who are excused from court prior to the end of a business day are required to contact their

Manager/ who will determine if there is sufficient time remaining within the scheduled work period for

meaningful work.

6.11 VOTING TIME

We encourage American Pest employees to vote in all municipal, state, and national elections. You should try

to arrange your voting time either before or after work or during lunch. If necessary, due to unusual

circumstances, the Company may allow you time off during the day to vote.

6.12 MILITARY SERVICE LEAVE FOR ACTIVE DUTY

If you are obligated to active or reserve duty by the United States Armed Forces, please show your orders to

Management as soon as you receive them. Employees who leave on a Military leave duty of more than 30 days

may continue their insurance coverage under COBRA.

All regular employees are eligible for re-employment after completing military service, under the following

conditions:

1. You receive an honorable discharge following a military service of not more than five years.

2. You apply for reinstatement (a) within ninety days after release from active duty or (b) within thirty-one

days after release from initial active duty for training of not less than three (3) months or on the next

regularly scheduled work period following other types of training duty, absence for induction or

examination, or after rejection.

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Provided the above conditions are met, you will be reinstated in the same position you left (or a similar one in

terms of status, pay, and seniority) and will receive full credit for time spent in the Armed Forces.

6.13 MILITARY RESERVE OR NATIONAL GUARD TRAINING LEAVES

If you are a member of the Reserve or National Guard and you are called upon to serve a two week tour of

active duty, you will be granted a military leave of absence for the time required. You should give Management

a copy of your orders and as much advance notice as possible. If you wish, you may use your accrued PTO for

this time.

6.14 YOUR SOCIAL SECURITY INSURANCE BENEFITS AND PAYMENTS

The federal Social Security program provides you with a variety of benefits including retirement payments,

death benefits, disability insurance, and monthly income payments to certain dependent survivors of covered

employees. According to the federal regulations, both you and the Company contribute to your Social Security

account.

Normally, you will be eligible to receive monthly income from Social Security when you retire or if become

totally or permanently disabled. If you have questions about your Social Security benefits, contact your local

Social Security office.

6.15 WORKERS' COMPENSATION

If you are injured on the job, you may be eligible for certain benefits under the Workers' Compensation

insurance policy which the Company carries on each employee. These benefits usually include your medical

costs, as well as, in some cases, a percentage of lost wages.

If you become injured on the job, please report it immediately to your Manager/Director or the Human

Resources Manager so that we can provide you with the necessary information to get the proper medical

attention and to ensure that your Workers' Compensation claim is properly filed. American Pest maintains a list

of preferred providers for medical treatment. The HR Manager will provide you with pertinent information.

American Pest may require you to submit to an alcohol and/or drug test after any workplace accident.

6.16 INSURANCE AGAINST UNEMPLOYMENT

Unemployment Compensation Insurance provides you with a certain amount of income should you become

unemployed through no fault of your own. The entire cost of this insurance is paid for by the Company. If and

when eligible, you will receive weekly income benefits, determined by the amount of wages you have earned.

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7 Your Personnel Record

Policy No. 7 Page: 1 of 7 Revised: 01/01/2013

7.1 YOUR PERSONNEL RECORD When you were first employed by American Pest, you completed an application form supplying us with various facts that we must know about you. This information was transferred to a file, which is the Company's employment record of you as an individual. Keeping this record correct and up-to-date is important to you because it enables the Company to reach you in an emergency, forward your mail, properly administer your insurance and other benefits, and compute your payroll deductions. The Human Resources department should be notified immediately of changes in: 1. Address or telephone number 2. Marital status 3. Name 4. Beneficiary or dependents listed in your insurance policy 5. Person(s) to notify in case of accident 6. Bank account information (if you have direct deposit) 7. Income tax withholdings Your immediate supervisor or manager, and all directors are entitled to view your employment file. In addition, you may review your own file by requesting to do so at least five business days prior to the date you wish to review it.

7.2 BULLETIN BOARDS Required legal notices are posted for your general information. Please form the habit of checking these bulletin boards to learn of your employment rights. Bulletin boards are for Company use only and may not be used for personal announcements or advertisements.

7.3 OTHER INFORMATION In addition to this employee policy handbook, you will, from time-to-time, receive other information from American Pest. There is no regular schedule for distribution of this information. Information will generally be disseminated via the company e-mail system, but may take the form of other media such as bulletins and letters. The function of each notice or publication is to provide you with important news and helpful information which will keep you up to date.

7.4 E-MAIL & INTERNET POLICY

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This policy defines the boundaries of acceptable use of American Pest’s computing and communication

resources, including computers, networks, electronic mail services, electronic information sources, voice mail,

telephone services, and other communication resources.

American Pest’s computing and communication resources are the property of American Pest. They are to be

used for the advancement of American Pest’s business purposes. Computing and communication resources are

provided for the use of staff. When your affiliation with American Pest ends, access to computing and

communications resources and accounts will be terminated.

Users of the Company’s computing and communications resources are required to comply with this policy, as

well as with state and federal laws. When necessary, enforcement will be consistent with other applicable

American Pest policies and procedures.

7.4.1 E-MAIL POLICY

You, as an American Pest employee, are responsible for using the electronic mail (E-mail) system properly and

in accordance with this policy. Any questions about this policy should be addressed to the Human Resources or

the Technology Department.

The E-mail system is the property of American Pest. It has been provided by American Pest for use in

conducting company business. All communications and information transmitted by, received from, or stored in

this system are company records and property of American Pest. Only authorized personnel may send E-mails

to “All-APM.”

Use of the E-mail system for personal purposes is generally not prohibited provided that it does not interfere

with job responsibilities and productivity. Anonymous messages are not to be sent nor are aliases permitted to

be used. You may not place personal copies of software or data on any computer without express authorization.

American Pest, in its discretion as owner of the E-mail system, reserves and may exercise the right to monitor,

access, retrieve, and delete any matter stored in, created, received, or sent over the E-mail system, for any reason

and without the permission of any employee. Employees have no right of personal privacy in any matter stored

in, created, received, or sent over the American Pest E-mail system.

Even if employees use a password to access the E-mail system, the confidentiality of any message stored in,

created, received, or sent from the American Pest E-mail system still cannot be assured. Use of passwords or

other security measures does not in any way diminish American Pest's rights to access materials on its system,

or create any privacy rights of employees in the messages and files on the system. Any password used by

employees must be revealed to American Pest as E-mail files may need to be accessed by the company in an

employee's absence.

Employees should be aware that deletion of any E-mail messages or files will not truly eliminate the messages

from the system. All E-mail messages are stored on a central back-up system in the normal course of data

management.

Even though American Pest has the right to retrieve and read any E-mail messages, those messages should still

be treated as confidential by other employees and accessed only by the intended recipient. Employees are not

authorized to retrieve or read any E-mail messages that are not sent to them. Any exception to this policy must

receive the prior approval of management.

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American Pest’s policies against sexual or other harassment apply fully to the E-mail system, and any violation

of those policies is grounds for discipline up to and including discharge. Therefore, no E-mail messages should

be created, sent, or received if they contain intimidating, hostile, or offensive material concerning race, color,

religion, sex, age, national origin, disability or any other classification protected by law.

The E-mail system may not be used to solicit for religious or political causes, commercial enterprises, outside

organizations, or other non-job related solicitations.

The E-mail system shall not be used to send (upload) or receive (download) copyrighted materials, trade secrets,

proprietary financial information, or similar materials without prior authorization from management.

Employees, if uncertain about whether certain information is copyrighted, proprietary, or otherwise

inappropriate for transfer, should resolve all doubts in favor of not transferring the information and consult the

Technology Manager.

Management approval is required before anyone can post any information on commercial on-line systems or the

Internet. Any approved material that is posted should obtain all proper copyright and trademark notices. Absent

prior approval from American Pest to act as an official representative of American Pest, employees posting

information must include a disclaimer in that information stating, that the "Views expressed by the author do not

necessarily represent those of American Pest."

Users should routinely delete outdated or otherwise unnecessary E-mails and computer files. These deletions

will help keep the system running smoothly and effectively, as well as minimize maintenance costs.

You are reminded to be courteous to other users of the system and always to conduct yourself in a professional

manner. E-mails are sometimes misdirected or forwarded and may be viewed by persons other than the

intended recipient. You should write E-mail communications with no less care, judgment and responsibility

than you would use for letters or internal memoranda written on American Pest letterhead.

Because E-mail records and computer files may be subject to discovery in litigation, you are expected to avoid

making statements in E-mail or computer files that would not reflect favorably on yourself, another employee or

the Company if disclosed in a litigation or otherwise.

Should you discover misuse of the E-mail system, you should inform the Technology Manager.

Violations of American Pest's E-mail policy may result in disciplinary action up to and including discharge.

American Pest reserves the right to modify this policy at any time, with or without notice.

Employees should consult with the Technology Manager regarding a company standard signature block for e-

mail messages.

7.4.2 INTERNET USE POLICY

Certain employees may be provided with access to the Internet to assist them in performing their jobs. The

Internet can be a valuable source of information and research. In addition, e-mail can provide excellent means

of communicating with other employees, our customers and clients, outside vendors, and other businesses. Use

of the internet system for personal purposes is generally not prohibited provided that it does not interfere with

job responsibilities and productivity. Use of the Internet, however, must be tempered with common sense and

good judgment.

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If you abuse your right to use the Internet, it will be taken away from you. In addition, you may be subject to

disciplinary action, including possible termination, and civil and criminal liability.

Your use of the Internet is governed by this policy and the E-Mail Policy.

Disclaimer of liability for use of Internet. American Pest is not responsible for material viewed or

downloaded by users from the Internet. The Internet is a worldwide network of computers that contains millions

of pages of information. Users can not download inappropriate material. In general, it is difficult to avoid at

least some contact with this material while using the Internet. Even innocuous search requests may lead to sites

with highly offensive content. In addition, having an e-mail address on the Internet may lead to receipt of

unsolicited e-mail containing offensive content. Users accessing the Internet do so at their own risk.

Duty not to waste computer resources. Employees must not deliberately perform acts that waste computer

resources or unfairly monopolize resources to the exclusion of others. These acts include, but are not limited to,

sending mass mailings or chain letters, spending excessive amounts of time on the Internet, playing games,

engaging in online chat groups, printing multiple copies of documents, or otherwise creating unnecessary

network traffic. Because audio, video and picture files require significant storage space, files of this or any

other sort may not be downloaded or streamed unless they are business-related.

No expectation of privacy. The computers and computer accounts given to employees are to assist them in

performance of their jobs. Employees should not have an expectation of privacy in anything they create, store,

send, or receive on the computer system.

Monitoring computer usage. The Company has the right, but not the duty, to monitor any and all of the

aspects of its computer system, including, but not limited to, monitoring sites visited by employees on the

Internet, monitoring chat groups and news groups, reviewing material downloaded or uploaded by employees to

the Internet, and reviewing e-mail sent and received by employees.

Blocking of inappropriate content. The Company may use software to identify inappropriate or sexually

explicit Internet sites. Such sites may be blocked from access by Company networks. In the event you

nonetheless encounter inappropriate or sexually explicit material while browsing on the Internet, immediately

disconnect from the site, regardless of whether the site was subject to company blocking software and report the

incident to the Technology Manager.

Prohibited activities. Material that is fraudulent, harassing, embarrassing, sexually explicit, profane, obscene,

intimidating, defamatory, or otherwise unlawful, inappropriate, offensive (including offensive material

concerning sex, race, color, national origin, religion, age, disability, or other characteristic protected by law), or

violative of American Pest's equal employment opportunity policy and its policies against sexual or other

harassment may not be downloaded from the Internet or displayed or stored in company computers. Employees

encountering or receiving this kind of material should immediately report the incident to their supervisors or the

Human Resources Department. American Pest's equal employment opportunity policy and its policies against

sexual or other harassment apply fully to the use of the Internet and any violation of those policies is grounds for

discipline up to and including discharge.

Games and entertainment software. Employees may not use the company's Internet connection to download

games or other entertainment software, including wallpaper and screen savers, or to play games over the

Internet.

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Illegal copying. Employees may not illegally copy material protected under copyright law or make that

material available to others for copying. You are responsible for complying with copyright law and applicable

licenses that may apply to software, files, graphics, documents, messages, and other material you wish to

download or copy. You may not agree to a license or download any material for which a registration fee is

charged without first obtaining the express written permission of your Director or the CEO.

Accessing the Internet. To ensure security and to avoid the spread of viruses, employees accessing the Internet

through a computer attached to American Pest’s network must do so through an approved Internet firewall.

Accessing the Internet directly by modem is strictly prohibited unless the computer you are using is not

connected to the Company's network.

Virus detection. Files obtained from sources outside of American Pest, including disks brought from home;

files downloaded from the Internet, newsgroups, bulletin boards, or other online services; files attached to e-

mail; and files provided by customers or vendors may contain dangerous computer viruses that may damage the

Company's computer network. You should never download files from the Internet, accept e-mail attachments

from outsiders, or use disks from non-Company sources, without first scanning the material with Company-

approved virus checking software. If you suspect that a virus has been introduced into the Company's network,

notify the Technology Manager immediately.

Sending unsolicited e-mail (spamming.) Without the express permission of their supervisors, employees may

not send unsolicited e-mail to persons with whom they do not have a prior relationship. Only employees

authorized to do so may send “All-APM” e-mails. In addition, you should not “Reply All” when replying to an

e-mail sent to “All-APM.”

Amendments and revisions. This policy may be amended or revised from time to time as the need arises.

Users will be provided with copies of all amendments and revisions.

Violations of this policy will be taken seriously and may result in disciplinary action, including termination, and

civil and criminal liability.

Use of the Internet via American Pest's computer system constitutes consent by the user to all of the terms and

conditions of this policy.

7.5 Cell Phone Use Policy

Company cell phones (i.e., smart phones/handhelds) are governed by the same rules as the computer

usage.

7.6 VOICE MAIL POLICY

Every American Pest employee is responsible for using the Voice Mail system properly and in accordance with

this policy. Any questions about this policy should be addressed to the Human Resources Department.

The Voice Mail system is the property of American Pest. It has been provided by American Pest for use in

conducting company business. All communications and information transmitted by, received from, or stored in

this system are company records and property of American Pest. The Voice Mail system is to be used for

company purposes only. Use of the Voice Mail system for personal purposes is prohibited.

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Employees have no right of personal privacy in any matter stored in, created, received, or sent over the

American Pest Voice Mail system.

American Pest, in its discretion as owner of the Voice Mail system, reserves and may exercise the right to

monitor, access, retrieve, and delete any matter stored in, created, received, or sent over the Voice Mail system,

for any reason without the permission of any employee and without notice.

Even if you use a password to access the Voice Mail system, the confidentiality of any message stored in,

created, received, or sent from the American Pest Voice Mail system still cannot be assured. Use of passwords

or other security measures does not in any way diminish the Company's rights to access materials on its system,

or create any privacy rights of employees in the messages and files on the system. Any password used by

employees must be revealed to American Pest as Voice Mail messages may need to be accessed by the

Company in an employee's absence.

Employees should be aware that deletion of any Voice Mail messages or files will not truly eliminate the

messages from the system. All Voice Mail messages are stored on a central back-up system in the normal

course of data management.

Even though American Pest reserves the right to retrieve and listen to any Voice Mail messages, those messages

should still be treated as confidential by other employees and accessed only by the intended recipient.

Employees are not authorized to retrieve or listen to any Voice Mail messages that are not sent to them. Any

exception to this policy must receive the prior approval of management.

American Pest's policies against sexual or other harassment apply fully to the Voice Mail system, and any

violation of those policies is grounds for discipline up to and including discharge. Therefore, no Voice Mail

messages should be created, sent, or received if they contain intimidating, hostile, or offensive material

concerning race, color, religion, sex, age, national origin, disability or any other classification protected by law.

The Voice Mail system may not be used to solicit for religious or political causes, commercial enterprises,

outside organizations, or other non-job related solicitations.

Users should routinely delete outdated or otherwise unnecessary Voice Mails. These deletions will help keep

the system running smoothly and effectively, as well as minimize maintenance costs.

Because of the storage space required for Voice Mail messages, employees should not send a Voice Mail

message to a large number of recipients without prior approval from their supervisor.

Employees are reminded to be courteous to other users of the system and always to conduct themselves in a

professional manner. Voice Mails are sometimes misdirected or forwarded and may be heard by persons other

than the intended recipient. Users should create Voice Mail communications with no less care, judgment and

responsibility than they would use for letters or internal memoranda written on American Pest letterhead.

Employees should also use professional and courteous greetings on their Voice Mail boxes so as to properly

represent American Pest to outside callers.

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Because Voice Mail records and messages may be subject to discovery in litigation, American Pest employees

are expected to avoid making statements in Voice Mail that would not reflect favorably on the employee or

American Pest if disclosed in a litigation or otherwise.

In order to avoid accidentally disclosing message contents to unauthorized listeners, employees should not listen

to Voice Mail messages while using the speaker phone feature.

Any employee who discovers misuse of the Voice Mail system should immediately contact the Human

Resources Department.

Violations of American Pest's Voice Mail policy may result in disciplinary action up to and including discharge.

American Pest reserves the right to modify this policy at any time, with or without notice.

Employees may be required to sign a Voice Mail Policy Acknowledgment Form as a condition of employment.

7.7 TELEPHONE SERVICE MONITORING PRACTICES – NOTICE TO EMPLOYEES

Telephone conversations with subscribers and others who call Customer Service Representatives (CSRs) on the

incoming business lines will be monitored and/or recorded from time to time for CSR training, quality control,

and other business purposes. This notice provides information to employees about monitoring and recording

practices.

So that callers may be aware of the possibility of all monitoring and/or recording, all monitoring (other than by

traditional, unmuffled "open mike" extensions) is preceded by a pre-recorded (or live) announcement over the

phone to each caller, stating that "to assure service quality, calls are sometimes monitored and/or recorded."

It is Company policy not to monitor or record any personal or confidential calls, except to the extent of

determining the personal or confidential nature of such calls. The following practices are used to promote the

privacy of all personal and confidential calls:

(1) The telephones on which CSRs receive calls on the outside line are not to be used for personal calls by CSRs

or other company employees, because those phones are subject to monitoring. Other phones are available in the

office to be used for any necessary personal calls.

(2) Calls that may be monitored are customarily labeled or marked: "To assure service quality, calls may be

monitored . . . ."

(3) Supervisors who conduct service monitoring should simply leave the line immediately if they monitor a call

which for any reason seems to be personal or confidential in nature.

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8 General Rules

Policy No. 8 Page: 1 of 5 Revised: 01/01/2013

8.1 GENERAL RULES The purpose of these rules is to define our general conduct expectations. By keeping you informed of these expectations, you will be better informed and the Company can operate in an orderly and efficient manner. We have found that most employees have a keen sense of appropriate behavior and strive to present the best conduct at all times - most employees don't break the rules. Our rules here are very simple. If any employee engages in activity detrimental to the best interest of the Company, our customers, or other employees, he or she will be appropriately disciplined up to and including termination. Activity detrimental to the Company includes habitual lateness and/or absenteeism, destruction of property, fighting, reporting to work under the influence of drugs or alcohol, stealing, insubordination, refusing to perform an assignment, and others. The following list is not all-inclusive but provides an example of improper behavior.

8.2 MISCONDUCT 1. Inefficiency, unsatisfactory performance, or lack of application or effort on the job. 2. Committing actions which affect the safety of equipment or personnel. 3. Violating a safety rule or safety practice. 4. Knowingly completing the day sheet, time sheet, or submitting a web clock for another employee, or

unauthorized altering of a day sheet, time sheet or the web clock entry of your own. 5. Being tardy without proper notice. 6. Being absent without proper notice or excuse. 7. Leaving your job or your regular working place during working hours for any reason without

authorization from Management except for lunch, rest periods, and going to the restroom. 8. Leaving work before the end of the shift or not ready to work at the scheduled starting time. 9. Reporting to work in an intoxicated condition or under the influence of drugs, possession of illegal

drugs on Company property, or consuming alcohol or illegal drugs on Company property, or transporting alcohol or illegal drugs in a Company vehicle.

10. Violence or inappropriate conduct reflecting on the Company. 11. Illegal or inappropriate behavior reflecting on the Company. 12. Misrepresentation of facts in seeking employment. 13. Dishonesty or removal of another employee's property or Company property without permission. 14. Destruction or careless use of equipment or property. 15. Insubordination (refusal to perform service connected with an employee's job as required by the

employee's manager or by management). 16. Possession of unauthorized firearms, other weapons, fireworks, or explosives on Company property.

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17. Theft, no matter how small or insignificant, of any amount of money or property from the Company, co-

workers, customers or visitors.

18. Testing positive for illegal substances as part of a post-accident, random, or reasonable suspicion drug

screening.

8.3 USE OF COMPANY VEHICLES AND EQUIPMENT

If you are issued a company vehicle, you will notice a monthly Auto Allowance in your pay. You will see the

same amount go in to your pay as “earnings” each month, and then come out as a deduction. You are taxed on

this employee benefit according to IRS regulations.

American Pest promotes safe driving by its employees. In an effort to reduce the risk of motor vehicle

accidents, promote public safety and contain insurance and repair costs, the company expects all drivers to abide

by the following rules when operating company vehicles:

1. In accordance with the law, any persons riding in any Company vehicle or in any vehicle for the

purpose of "American Pest business" are required to wear seat belts. If any vehicle is lacking in seat

belts or has inoperative seat belts, you are required to notify Management immediately.

2. You must maintain and carry a valid driver’s license.

3. You must maintain a driving record that is acceptable to our insurance carrier and company policy.

Driving records are checked periodically, to ensure validity.

4. You must drive safely and courteously, complying with all traffic laws.

5. You must park in safe manner, backing into a space when possible,

6. Carry the company auto insurance card, a blank vehicle accident report, and a drug and alcohol testing

form in your vehicle at all times. It is your responsibility to request replacements as needed.

Your company vehicle is provided for your use to perform your assigned service work. It is not for personal

use. It is against company policy to transport anyone in a company vehicle other than a company employee. In

addition, gasoline credit cards are to be used only for your company vehicle. Gasoline is only to be purchased

on days on which you have scheduled work and it is to be purchased only from an authorized service station.

It is a violation of company policy to possess, consume or transport illegal drugs and/or alcoholic

beverages in any company vehicle. Additionally, in accordance with our “Smokefree Workplace Policy,”

smoking in a company vehicle is prohibited. Violation of any of these policies will be considered grounds

for immediate dismissal.

Your service vehicle is a reflection of this company. It is expected that it be kept clean and orderly and that

certain routine maintenance be performed. The company vehicle should not be left unlocked at any time for any

reason.

Regular routine vehicle maintenance must be performed by the technician. Such things as tire pressure, tire

wear, lights, and oil level must be checked on a regular basis. Any repairs that are needed to any company

vehicle must be reported in writing to a supervisor.

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The company vehicle must be kept clean inside and out, at all times. Vehicles will be inspected periodically to

see that they are properly cleaned and organized. All materials should be well organized within the vehicle,

properly labeled, and in good repair. Equipment must be checked on a regular basis before beginning the day’s

work.

Employees are prohibited from texting while operating our vehicle.

8.4 TRAFFIC VIOLATIONS

It is the policy of the Company and a requirement of management that all employees observe the highest

standards of driving safety. This is true for a number of reasons. First, we want all employees to have a safe

and healthful job and we do not want any employee to be injured in a traffic accident. Additionally, insurance

companies require that employees have acceptable driving records.

Employees are expected to observe and obey applicable traffic regulations while operating vehicles. Any traffic

or parking citations or penalties incurred by an employee while driving a Company vehicle are the responsibility

of the employee. Failure to maintain a proper driving record may result in disciplinary action, up to and

including termination. American Pest will periodically request the driving records for that purpose.

Any parking ticket(s) received on company vehicles must be turned in to the Accounting Department

immediately. They will be paid by the company and deducted your pay. With the exception of red light and

speeding camera tickets, payment for moving violations is your responsibility. Failure to follow these

procedures will result in a doubling of the fine by the issuing authority and/or a fifteen dollar service charge

which is imposed by our vehicle leasing company.

8.5 ACCIDENTS IN A COMPANY VEHICLE

If you are involved in an accident while driving a Company-owned vehicle, you must immediately report it to

your Manager or Director. Additionally, in cases where the police are called, you are not leave the scene of the

accident until the police have obtained all necessary information from you and any other party involved in the

accident.

The following procedure is to be followed:

1. Stop at once and investigate.

2. Contact the police department for all accidents no matter how small.

3. Notify the office or your Manager or Director immediately, but in no case should it be later than 24

hours after the accident. You will be given instructions about reporting for a post-accident drug

screening.

4. Remain at the scene until the police arrive.

5. Do not move your vehicle, except on police order.

6. In case of injury, call 911 and your supervisor and/or the Manager of Human Resources.

7. Fill out vehicle accident form. Get license number, correct and full name, address, and insurance

company of other parties involved. Get correct full names, addresses and phone numbers of all possible

witnesses.

8. Do not make any statements concerning the accident except to the police. This especially applies to who

is at fault with respect to insurance company liability.

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9. Have your auto insurance card readily available in your vehicle at all times.

10. Contain any spilled materials and see spill control procedures.

Insurance Deductibles:

The Company generally carries high deductibles on insurance coverage. You are personally responsible for the

vehicle during work hours and off-hours. All damages, from accidents to other causes, up to that deductible

(e.g., $500) may be assessed against your pay even if you are not charged with being at fault in the accident or

incident.

Driver Selection Standards:

Employees, with driving responsibilities, must meet and maintain the following minimum standards:

1. No more than two standard violations in the past three years.

2. No accidents in the past three years in which the driver received a standard violation.

3. No major violations (e.g., DUIs, DWIs, vehicular manslaughter, etc.) in the past five years.

Training Requirements:

Employees who drive company vehicles are expected to have the driving skills needed prior to entry into the

position. However, additional training may be required and annual training will be given to all employees.

Each new employee will complete a safety-training program within the first month of employment.

8.6 PROGRESSIVE DISCIPLINE POLICY

In this handbook, we have outlined some guidelines and expectations for employees of American Pest. We are

confident that most employees will follow these guidelines and enjoy working here. However, should work

rules be broken or should an employee engage in unacceptable behavior, our progressive discipline policy will

enable us to attempt to correct the problem. If your behavior does not improve following verbal correction or

based upon the severity of the offense a manager may begin with written correction.

Normal steps in our disciplinary process are outlined below. However, at management's discretion, we reserve

the right to enter into any phase of discipline, at any time, depending on the nature and frequency of offenses.

8.6.1 VERBAL CORRECTION

Management may attempt to work with you through any problems that may arise. At times, if performance or

behavior is unacceptable, your manager may verbally correct you. A written record of this session will normally

be placed in your personnel file.

8.6.2 WRITTEN CORRECTION

If your behavior is not corrected following the verbal warning, your manager or other management employee(s)

may prepare a written correction notice. You will be asked to sign the form indicating receipt of the correction,

and a copy will be placed in your file.

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SUSPENSION/ADMINISTRATIVE LEAVE

8.6.3 TERMINATION

Depending on the nature, frequency, and severity of an infraction or action, and past employment history,

termination of employment may occur.

Of course, these are our general guidelines and our employment-at-will policy remains in effect at all times.

Should you have any questions about this policy, please contact the Human Resources Manager

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9 Summary and Closing Word

Policy No. 9 Page: 1 of 1 Revised: 01/01/2013

This handbook is a summary of the principles for which we stand, the benefits you receive and the obligations you assume as an employee. We hope that you have read this handbook carefully and will refer to it in the future. If you have any questions concerning the policies or benefits outlined in this handbook, please ask Management about them. We may occasionally revise policies outlined in this handbook, or add new policies and new benefits that we feel will make American Pest a better place to work. The dynamic nature of our business, our steady growth, and ever-changing business conditions will undoubtedly require changes in our policies and procedures. Be sure to keep any notification of policy changes that come to you. You are now a part of the team and we hope your association with us will be happy and rewarding. The Company has made considerable progress since its beginning, and the credit goes to each individual employee. Your job is important to our continued growth and success. With all of us working together in a spirit of cooperation and teamwork, our Company will be unsurpassed for its quality, integrity, and service.

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10 Receipt for Employee Policy

Handbook

Policy No. 10 Page: 1 of 1 Revised: 01/01/2013

I have read a copy of the employee handbook for American Pest. I acknowledge that I know where to find this handbook on the Management Links of our company software program, PestPac. I agree to refer this handbook for future reference and to observe all present and future Company personnel policies and rules. I understand that changes may be made to this handbook at any time, and that it is my responsibility to read it periodically to learn of such changes. I understand this document does not represent or constitute a contractual agreement. EMPLOYEE NAME (Printed): _________________________________________ SIGNATURE: _________________________________________ DATE: _________________________________________ **This page is to be signed and returned to Human Resources