Table of Contents A Message from the Managing Partners ...

Table of Contents A Message from the Managing Partners……………………………… 4 Welcome…………………………………………………………………….. 6 Introductory Statement………………………………………………………………. 6 Right to Revise……………………………………………………………………….. 6 At-Will Employment Status………………………………………………………….. 7 Severance Pay………………………………………………………………………... 7 Equal Employment Opportunity……………………………………………………... 7 Immigration Reform and Control Act of 1986……………………………………… 8 Unlawful Harassment………………………………………………………………… 8 Hiring and Employment Classifications………………………………. 10 90 Day Introductory Period………………………………………………………….. 10 Job Duties……………………………………………………………………………... 10 Job Classification and Eligibility for Benefits………………………………………. 10 Inactive Status………………………………………………………………………… 11 Health Benefits Extension…………………………………………………………… 11 Leaves of Absence………………………………………………………... 12 Family/Medical Leave………………………………………………………………… 12 Paid Time Off Accrual………………………………………………………………... 15 Carryover………………………………………………………………………………. 15 Intermittent Leave…………………………………………………………………….. 15 Pregnancy Disability Leave………………………………………………………….. 16 Coordination of PDL with Family/Medical Leave………………………………….. 17 Personal Leave……………………………………………………………………….. 17 Concurrent Personal and Family/Medical Leave………………………………….. 17 Domestic Violence Leave……………………………………………………………. 18 Victims of Crime Leave………………………………………………………………. 18 Military Leave…………………………………………………………………………. 19 Voluntary Civil Service Personnel…………………………………………………... 19 Military Spouse Leave……………………………………………………………….. 19 Time Off for Voting……………………………………………………………………. 19 School Activities………………………………………………………………………. 20 Suspension……………………………………………………………………………. 20 Jury Duty and Witness Leave……………………………………………………….. 20 Health and Welfare Benefits…………………………………………….. 21 Vacation……………………………………………………………………………….. 21 Required Use of Vacation Before Unpaid Sick Leave……………………………. 22 Paid Holidays………………………………………………………………………….. 23 Worker’s Compensation……………………………………………………………… 23 Disability Insurance…………………………………………………………………… 24 Unemployment Compensation……………………………………………………… 24 Social Security………………………………………………………………………… 24 Management………………………………………………………………... 25 Personnel Records…………………………………………………………………… 25

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Driving Records………………………………………………………………………. 25 Pre-Employment Background Screening………………………………………….. 25 Employment References and Employment Verification………………………….. 25 Wage Garnishments………………………………………………………………….. 26 Changes in Personal Information…………………………………………………… 26 Open Door Policy……………………………………………………………………... 26 Performance Evaluations……………………………………………………………. 26 Employee Property Inspection………………………………………………………. 27 Employment of Relatives…………………………………………………………….. 27 Company Property……………………………………………………………………. 27 Use of Electronic Media……………………………………………………………… 28 Telephone Usage…………………………………………………………………….. 29 Customer/Co-worker Communication Etiquette…………………………………… 29 Parking…………………………………………………………………………………. 29 Surveillance Monitoring………………………………………………………………. 30 Off-Duty Use of Facilities…………………………………………………………….. 30 Recreational, Social or Athletic Activities…………………………………………... 30 Smoking……………………………………………………………………………….. 30 Proposition 65 Notification…………………………………………………………… 30 Guests and Visitors…………………………………………………………………… 31 Solicitation and Distribution of Literature…………………………………………… 31 Housekeeping…………………………………………………………………………. 31 Store Merchandise Purchase by Employees……………………………………… 31 Alcohol, Tobacco and Lottery Sales to Employees………………………………. 32 Alcohol and Tobacco Transaction Procedure…………………………………….. 32 Loss Prevention/Theft Policy………………………………………………………… 33 Employee Conduct………………………………………………………... 35 Confidentiality…………………………………………………………………………. 35 Customer Relations…………………………………………………………………... 35 Vendor Procedure…………………………………………………………………….. 36 Conflicts of Interest…………………………………………………………………… 36 Notice…………………………………………………………………………………... 36 Conducting Personal Business……………………………………………………… 37 Drug and Alcohol Abuse…………………………………………………………….. 37 Prohibited Conduct…………………………………………………………………… 38 Off-Duty Conduct…………………………………………………………………….. 39 Punctuality and Attendance…………………………………………………………. 40 Call-In Procedure……………………………………………………………………... 40 Dress Code and Other Personal Standards……………………………………….. 40 General Hygiene Requirements…………………………………………………….. 41 Uniforms……………………………………………………………………………….. 41 Wages……………………………………………………………………….. 42 Direct Deposit…………………………………………………………………………. 42 Work Schedules………………………………………………………………………. 42 Timekeeping…………………………………………………………………………... 42 Overtime for Non-Exempt Employees……………………………………………… 43

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Meal and Rest Periods………………………………………………………………. 43 Pay Advances…………………………………………………………………………. 43 Safety and Health…………………………………………………………. 44 Security………………………………………………………………………………… 44 Workplace Violence………………………………………………………………….. 44 Heat Illness……………………………………………………………………………. 45 Inclement Weather/Natural Disasters………………………………………………. 45 Recreational Activities and Programs………………………………………………. 45 Termination………………………………………………………………… 46 Voluntary Resignation………………………………………………………………... 46 Involuntary Termination and Progressive Discipline……………………………… 46 Reduction in Force……………………………………………………………………. 46 Confirmation of Receipt………………………………………………….. 47

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A Message from the Managing Partners

This brief message is offered to provide you with a clear vision of the mission we pursue, so that you may be guided in bringing your value to our team. The Employee Handbook you are reviewing represents the policies, procedures, and expected conduct of each employee of ARS West LLC. We welcome you and encourage you to always communicate to us your concerns, ideas, and observations. We recognize that you are the key to our success – you will interact daily with our customers. How you perform, and how we help you to perform, will dictate your success and ours. ARS began a highly successful relationship with Shell Oil Company in the fall of 2000, serving as a Manager of 5 of its retail outlets in the greater Fresno, California market. Since that beginning, the Company has been offered additional Management and Lease opportunities in the Central Valley and San Diego areas of California; Tucson and Yuma, Arizona; Oregon; and Seattle, Washington. Affiliated entities own some of the properties operated by ARS. Now with more than 80 locations under management, ARS is able to use its scale to negotiate more favorable vendor contracts, implement greater efficiencies in accounting and management systems and achieve a broader access to capital markets. We believe this will reinforce our rapid growth and open advancement opportunities to dedicated employees. The mission statement of ARS is to deliver compelling value to customers, partners and employees by continually seeking out creative, innovative and efficient operating policies and programs for the management of convenience retail profit centers. Fuel sales are an important component in building traffic in all profit centers. We expect you to leverage the traffic and maximize the value of this customer traffic by offering products and services our customers seek. To grow our business, we must stay continually focused on improving and enhancing customer satisfaction. That satisfaction is created by:

Convenience – the ease, speed and efficiency of the customer’s shopping experience

Assortment – a sufficiently broad array of the products we offer

Service – how we assist customers and solve their problems

Price – how we compete – especially on high-turnover basics

Reassurance and cleanliness – restrooms, floors, inventory, counters

Freshness – shelf age of products, appearance of perishables

Ambience – friendliness, courtesy, warmth, customer relationship-building

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Our success in delivering these basic customer expectations will determine the success or failure of our business and your earning potential. Senior Management consists of individuals with diverse backgrounds and experience. Collectively, the senior management team possesses expertise in the disciplines of gas station and convenience store operations, team building and employee training, marketing, asset management and corporate finance and accounting. The following is a brief overview of the Managing Partners and their responsibilities and backgrounds:

Howard Bode – Operations Manager

Howard Bode has nineteen years of diverse experience in the oil products and convenience store industry. Within these industries, Mr. Bode held positions in retail marketing, convenience store operations and financial and strategic planning. Mr. Bode is responsible for managing all aspects of the retail gas station convenience store facilities for ARS. His responsibilities include the direct supervision of all ARS operating employees and the management of multiple profit centers at each location. He directs all station level operations including control procedures, all marketing elements and product pricing. In addition, Mr. Bode’s responsibilities include financial analysis of operations for the guidance of store level and regional management to ensure that store budget guideline requirements are achieved. Ronald Myhro – Administrative Manager Ronald Myhro has an extensive background in real estate and corporate finance. He is responsible for the corporate operations, including accounting, finance, legal and cash management functions. He directs new investment activities and develops capitalization strategies to ensure continuing access to debt and equity capital for the acquisition of new facilities, retrofitting and repositioning of existing facilities and construction of new products. Mr. Myhro manages compliance with covenants and funding obligations under credit facilities and interacts with investment bankers and lenders as necessary. In addition, he directs regulatory compliance with state and federal agencies and co-ordinates legal and contract functions. He is responsible for the designated manager of tax issues and co-ordinates preparation of annual tax returns, profit and loss statements and other financial reporting. Mr. Myhro directs the preparation of budgets, financial forecasts and arranges for audits of company accounts.

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Welcome 

Introductory Statement

Welcome! As an employee of ARS (the Company), you are an important member of a team effort. We hope that you will find your position with the Company rewarding, challenging, and productive.

Because our success depends upon the dedication of our employees, we are highly selective in choosing new members of our team. We look to you and the other employees to contribute to the success of the Company.

This employee handbook is intended to explain the terms and conditions of employment of all full- and part-time employees and supervisors. Written employment contracts between ARS and some individuals may supersede some of the provisions of this handbook.

This handbook summarizes the policies and practices in effect at the time of publication. This handbook supersedes all previously issued handbooks and any policy or benefit statements or memoranda that are inconsistent with the policies described here. Your supervisor or manager will be happy to answer any questions you may have.

Right to Revise

This employee handbook contains the employment policies and practices of ARS in effect at the time of publication. All previously issued handbooks and any inconsistent policy statements or memoranda are superseded.

ARS reserves the right to revise, modify, delete, or add to any and all policies, procedures, work rules, or benefits stated in this handbook or in any other document, except for the policy of at-will employment. However, any such changes must be in writing and must be signed by the Managing Partners of ARS.

Any written changes to this handbook will be distributed to all employees so that employees will be aware of the new policies or procedures. No oral statements or representations can in any way alter the provisions of this handbook.

This handbook sets forth the entire agreement between you and ARS as to the duration of employment and the circumstances under which employment may be terminated. Nothing in this employee handbook or in any other personnel document, including benefit plan descriptions, creates or is intended to create a promise or representation of continued employment for any employee.

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At-Will Employment Status

ARS personnel are employed on an at-will basis. Employment at-will may be terminated or disciplined with or without cause and with or without advance notice at any time by the employee or the Company. Nothing in this handbook shall limit the right to terminate at-will employment. No manager, supervisor, or employee of the Company has any authority to enter into an agreement for employment for any specified period of time or to make an agreement for employment on other than at-will terms. Only the Managing Partners of ARS have the authority to make any such agreement, which is binding only if it is in writing.

Severance Pay

The Company does not have a plan to allow severance pay to terminated employees.

Equal Employment Opportunity

ARS is an equal opportunity employer and makes employment decisions on the basis of merit. We want to have the best available persons in every job. Company policy prohibits unlawful discrimination based on race, color, creed, gender, religion, marital status, registered domestic partner status, age, national origin or ancestry, physical or mental disability, medical condition including genetic characteristics, sexual orientation, or any other consideration made unlawful by federal, state, or local laws. It also prohibits unlawful discrimination based on the perception that anyone has any of those characteristics, or is associated with a person who has or is perceived as having any of those characteristics. All such discrimination is unlawful.

The Company is committed to compliance with all applicable laws providing equal employment opportunities. This commitment applies to all persons involved in Company operations and prohibits unlawful discrimination by any employee of the Company, including supervisors and co-workers.

To comply with applicable laws ensuring equal employment opportunities to qualified individuals with a disability, the Company will make reasonable accommodations for the known physical or mental limitations of an otherwise qualified individual with a disability who is an applicant or an employee unless undue hardship would result.

Any applicant or employee who requires an accommodation in order to perform the essential functions of the job should contact their Manager and the Human Resources Department and request such an accommodation. The individual with the disability should specify what accommodation he or she needs to perform the job in writing. The Company then will conduct an investigation to identify the barriers that interfere with the equal opportunity of the applicant or employee to perform his or her job. The Company will identify possible accommodations, if any that will help eliminate the limitation. If the accommodation is reasonable and will not impose an undue hardship, the Company will make the accommodation.

If you believe you have been subjected to any form of unlawful discrimination, submit a written complaint to your Manager, District Manager or the Human Resources Manager. Your complaint should be specific and should include the names of the individuals involved and the names of any witnesses. If you need assistance with your complaint, or if you prefer to make a complaint in person, contact the Human Resources Manager. The Company will immediately undertake an effective, thorough, and objective investigation and attempt to resolve the situation.

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If the Company determines that unlawful discrimination has occurred, effective remedial action will be taken commensurate with the severity of the offense. Appropriate action also will be taken to deter any future discrimination. The Company will not retaliate against you for filing a complaint and will not knowingly permit retaliation by management employees or your co-workers.

Immigration Reform and Control Act of 1986

Under the provisions of the Immigration Reform Control Act of 1986, all employees hired after November 6, 1986 must provide at the time of employment proof both of their identity and their authorization to work in the United States. I-9 Attestation forms are to be completed and signed by the new hire verifying identity and work authorization.

All applicants will be considered for open positions regardless of national origin and citizenship status in accordance with the provisions of the Immigration Act of 1986 and all regulations promulgated there under. The Company will strictly enforce this policy, and all employees are expected to cooperate in ensuring that violations of the policy do not occur.

Unlawful Harassment

ARS is committed to providing a work environment free of unlawful harassment. Company policy prohibits sexual harassment and harassment based on pregnancy, childbirth or related medical conditions, race, religious creed, color, gender, national origin or ancestry, physical or mental disability, medical condition, marital status, registered domestic partner status, age, sexual orientation or any other basis protected by federal, state or local law or ordinance or regulation. All such harassment is unlawful. The Company’s anti-harassment policy applies to all persons involved in the operation of the Company and prohibits unlawful harassment by any employee of the Company, including supervisors and managers, as well as vendors, customers, independent contractors and any other persons. It also prohibits unlawful harassment based on the perception that anyone has any of those characteristics, or is associated with a person who has or is perceived as having any of those characteristics.

Prohibited unlawful harassment includes, but is not limited to, the following behavior:

Verbal conduct such as epithets, derogatory jokes or comments, slurs or unwanted sexual advances, invitations or comments;

Visual displays such as derogatory and/or sexually-oriented posters, photography, cartoons, drawings or gestures;

Physical conduct including assault, unwanted touching, intentionally blocking normal movement or interfering with work because of sex, race or any other protected basis;

Threats and demands to submit to sexual requests as a condition of continued employment, or to avoid some other loss and offers of employment benefits in return for sexual favors; and

Retaliation for reporting or threatening to report harassment.

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If you believe that you have been unlawfully harassed, bring your complaint to your own or any other Company manager, the Managing Partners or the Human Resources Manager of the Company as soon as possible after the incident. You will be asked to provide details of the incident or incidents, names of individuals involved and names of any witnesses. It would be best to communicate your complaint in writing, but this is not mandatory. Supervisors will refer all harassment complaints to the Human Resources Department. The Company will immediately undertake an effective, thorough and objective investigation of the harassment allegations.

If the Company determines that unlawful harassment has occurred, effective remedial action will be taken in accordance with the circumstances involved. Any employee determined by the Company to be responsible for unlawful harassment will be subject to appropriate disciplinary action, up to, and including termination. A Company representative will advise all parties concerned of the results of the investigation. The Company will not retaliate against you for filing a complaint and will not tolerate or permit retaliation by management, employees or co-workers.

The Company encourages all employees to report any incidents of harassment forbidden by this policy immediately so that complaints can be quickly and fairly resolved. You also should be aware that the Federal Equal Employment Opportunity Commission and the California Department of Fair Employment and Housing investigate and prosecute complaints of prohibited harassment in employment. If you think you have been harassed or that you have been retaliated against for resisting or complaining, you may file a complaint with the appropriate agency. The nearest office is listed in the telephone book.

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Hiring and Employment Classifications

90-Day Introductory Period

The first 90 days of continuous employment at ARS is considered an introductory period. During this time you will learn your responsibilities, get acquainted with fellow employees, and determine whether or not you are happy with your job. Your supervisor will closely monitor your performance.

Upon completion of the introductory period, ARS will review your performance. If the Company finds your performance satisfactory and decides to continue your employment, it will advise you of any improvements expected from you. At that time, you may express suggestions to improve the Company’s efficiency and operations. Completion of the introductory period does not entitle you to remain employed by ARS for any definite period of time, but rather allows both you and the Company to evaluate whether or not you are right for the position. After completion of the trial period, eligible employees will receive the benefits described in this handbook.

Job Duties

During the introductory period, your supervisor will explain your job responsibilities and the performance standards expected of you. Be aware that your job responsibilities may change at any time during your employment. From time to time, you may be asked to work on special projects, or to assist with other work necessary or important to the operation of your department or ARS. Your cooperation and assistance in performing such additional work is expected.

ARS reserves the right, at any time, with or without notice, to alter or change job responsibilities, reassign or transfer job positions, or assign additional job responsibilities.

Job Classification and Eligibility for Benefits The employee’s classification and/or department or job assignment determines eligibility for participation in any benefit program. Employees are classified as follows:

Regular Full Time Employees: Employees who are regularly scheduled to work thirty-two or more hours per week. Regular employees are entitled to all Company-sponsored benefits if they are Salary Exempt or Salary Non-Exempt. Regular Hourly Non-Exempt employees are eligible for some Company-sponsored benefits (see benefits section).

Part-Time Employees: Employees working less than 32 hours per pay week or less than 64 hours per pay period. Part-time employees are not entitled to the paid time off or health and welfare benefits as described in this Handbook.

Temporary Employees: Temporary employees are those employed for short-term assignments. Short-term assignments generally are periods of three months or fewer; however, such assignments may be extended. Temporary employees are not eligible for employee benefits except those mandated by applicable law.

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Inactive Status

Employees who are on any type of leave of absence, work-related or non-work-related, that exceeds any protected state or federal leave of absence will be placed on inactive status.

Health Benefits Extension

Unless health benefits extension is covered by state or federal law, benefits will terminate according to our insurance carrier’s policy. Contact Human Resources for more information.

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Leaves of Absence

ARS may grant leaves of absence to employees in certain circumstances. Request any leave in writing as far in advance as possible, keep in touch with your supervisor or the Human Resources Department at least every thirty (30) days during your leave, and give prompt notice of any change in your anticipated return date. If your leave expires and you fail to return to work without contacting your supervisor or the personnel office, the Company will assume that you do not plan to return and that you have terminated your employment. Upon return from a leave of absence, you will resume all aspects of your employment status that existed prior to the start of your leave.

Family/Medical Leave

State and federal family and medical leave laws provide up to 12 workweeks of unpaid family/medical leave within a 12-month period, under the following conditions:

The employee has more than 12 months of service;

The employee has worked at least 1,250 hours during the previous 12-month period before the need for leave; and

The employee is employed at a work site where there are 50 or more employees within a 75-mile radius.

Leave may be taken for one or more of the following reasons:

The birth of the employee’s child, or placement of a child with the employee for adoption or foster care;

To care for the employee’s spouse, registered domestic partner, child, or parent who has a serious health condition; or

For a serious health condition that makes the employee unable to perform his or her job.

For purposes of calculating the 12-month period during which 12 weeks of leave may be taken, ARS uses a calendar year.

Under most circumstances, leave under federal and state law will run at the same time and the eligible employee will be entitled to a total of 12 weeks of family and medical leave in the designated 12-month period.

However, leave because of the employee’s disability for pregnancy, childbirth or related medical condition is not counted as time used under California law (the California Family Rights Act). Time off because of pregnancy disability, childbirth or related medical condition does count as family and medical leave under federal law (the Family and Medical Leave Act). Employees who take time off for pregnancy disability and who are eligible for family and medical leave will also be placed on family and medical leave that runs at the same time as their pregnancy disability leave. Once the pregnant employee is no longer disabled, she may apply for leave under the California Family Rights Act, for purposes of baby bonding.

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Any leave taken for the birth, adoption, or foster care placement of a child does not have to be taken in one continuous period of time. California Family Rights Act leave taken for the birth or placement of a child will be granted in minimum amounts of two weeks. However, ARS will grant a request for a California Family Rights Act leave (for birth/placement of a child) of less than two weeks’ duration on any two occasions. Any leave taken must be concluded within one year of the birth or placement of the child with the employee.

The following procedures shall apply when an employee requests family leave:

Please contact your Manager as soon as you realize the need for family/medical leave.

If the leave is based on the expected birth, placement for adoption or foster care, or planned medical treatment for a serious health condition of the employee or a family member, the employee must notify the Company at least 30 days before leave is to begin. The employee must consult with his or her supervisor regarding scheduling of any planned medical treatment or supervision in order to minimize disruption to Company operations. Any such scheduling is subject to the approval of the health care provider of the employee or the health care provider of the employee’s child, parent, or spouse.

If the employee cannot provide 30 days’ notice, the Company must be informed as soon as is practical.

If the Family and Medical Leave Act/California Family Rights Act request is made because of the employee’s own serious health condition, ARS may require, at its expense, a second opinion from a health care provider that the Company chooses. The health care provider designated to give a second opinion will not be one who is employed on a regular basis by the Company.

If the second opinion differs from the first opinion, ARS may require, at its expense, the employee to obtain the opinion of a third health care provider designated or approved jointly by the employer and the employee. The opinion of the third health care provider shall be considered final and binding on ARS and the employee.

ARS requires the employee to provide certification within 15 days of any request for family and medical leave under state and federal law, unless it is not practicable to do so. ARS may require recertification from the health care provider if additional leave is required.

If the leave is needed to care for a sick child, spouse, or parent, the employee must provide a certification from the health care provider stating:

Date of commencement of the serious health condition;

Probable duration of the condition;

Estimated amount of time for care by the health care provider; and

Confirmation that the serious health condition warrants the participation of the employee.

When both parents are employed by ARS, and request simultaneous leave for the birth or placement for adoption or foster care of a child, the Company will not grant more than a total of 12 workweeks of family/medical leave for this reason.

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If an employee cites his/her own serious health condition as a reason for leave, the employee must provide a certification from the health care provider stating:

Date of commencement of the serious health condition;

Probable duration of the condition; and

Inability of the employee to work at all or perform any one or more of the essential functions of his/her position because of the serious health condition.

ARS will require certification by the employee’s health care provider that the employee is fit to return to his or her job.

Failure to provide certification by the health care provider of the employee’s fitness to return to work will result in denial of reinstatement for the employee until the certificate is obtained.

An employee taking family medical leave will be allowed to continue participating in any health and welfare benefit plans in which he/she was enrolled before the first day of the leave (for a maximum of 12 workweeks) at the level and under the conditions of coverage as if the employee had continued in employment for the duration of such leave. ARS will continue to make the same premium contribution as if the employee had continued working. The continued participation in health benefits begins on the date leave first begins under Family and Medical Leave Act (for pregnancy disability leaves) or under the Family and Medical Leave Act/California Family Rights Act (for all other family care and medical leaves). In some instances, the Company may recover from an employee premiums paid to maintain health coverage if the employee fails to return to work following family/medical leave.

Employees on family/medical leave who are not eligible for continued paid coverage may continue their group health insurance coverage through ARS in conjunction with the federal COBRA guidelines by making monthly payments to ARS for the amount of the applicable premium. Employees should contact their supervisor for further information.

Payment is due when it would be made by payroll deduction.

Paid leave may be substituted for unpaid leave in the following circumstances:

Accrued sick leave may be used by the employee for the employee's own serious health condition.

Accrued sick leave may be used for the care of a family member if mutually agreed upon by the Company and the employee.

Vacation and other accrued time (other than sick leave) may be used for any family/medical leave qualifying event.

Under most circumstances, upon return from family/medical leave, an employee will be reinstated to his or her original job or to an equivalent job with equivalent pay, benefits, and other employment terms and conditions. However, an employee has no greater right to reinstatement than if he or she had been continuously employed rather than on leave. For example, if an employee on family/medical leave would have been laid off had he or she not gone on leave, or if the employee’s job is eliminated during the leave and no equivalent or comparable job is available, then the employee would not be entitled to reinstatement. In addition, an employee’s use of family/medical leave will not result in the loss of any employment benefit that the employee earned before using family/medical leave.

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Reinstatement after family/medical leave may be denied to certain salaried “key” employees under the following conditions:

An employee requesting reinstatement was among the highest-paid 10 percent of salaried employees employed within 75 miles of the work site at which the employee worked at the time of the leave request;

The refusal to reinstate is necessary because reinstatement would cause substantial and grievous economic injury to the Company’s operations;

The employee is notified of the Company’s intent to refuse reinstatement at the time the Company determines the refusal is necessary; and

If leave has already begun, the Company gives the employee a reasonable opportunity to return to work following the notice described previously.

For additional information about eligibility for family/medical leave, contact Human Resources.

Paid Time Off Accrual

Employees on Family and Medical Leave Act/California Family Rights Act leave will not continue to accrue vacation or sick leave during unpaid Family and Medical Leave Act/California Family Rights Act leave.

Carryover

Leave granted under any of the reasons provided by state and federal law will be counted as family/medical leave and will be considered as part of the 12-workweek entitlement in a 12-month period. The 12-month period is measured forward from the date any employee’s first Family and Medical Leave Act leave begins. Successive 12-month periods commence on the date of an employee’s first use of such leave after the preceding 12-month period has ended. No carryover of unused leave from one 12-month period to the next 12-month period is permitted.

Intermittent Leave

Employees may take Family and Medical Leave Act/California Family Rights Act leave intermittently (in blocks of time, or by reducing their normal weekly or daily work schedule) if the leave is for the serious health condition of the employee’s child, parent, or spouse, or of the employee, and the reduced leave schedule is medically necessary as determined by the health care provider of the person with the serious health condition. The smallest increment of time that can be used for such leave is one day.

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Pregnancy Disability Leave

Pregnancy, childbirth, or related medical conditions will be treated like any other disability, and an employee on leave will be eligible for temporary disability benefits in the same amount and degree as any other employee on leave.

Any female employee planning to take pregnancy disability leave should advise the Human Resources Department as early as possible. The individual should make an appointment with the Human Resources Manager to discuss the following conditions:

Employees who need to take pregnancy disability must inform ARS when a leave is expected to begin and how long it will likely last. If the need for a leave or transfer is foreseeable, employees must provide notification at least 30 days before the pregnancy disability leave or transfer is to begin. Employees must consult with the Human Resources Manager regarding the scheduling of any planned medical treatment or supervision in order to minimize disruption to the operations of the Company. Any such scheduling is subject to the approval of the employee’s health care provider;

If 30 days’ advance notice is not possible, notice must be given as soon as practical;

Upon the request of an employee and recommendation of the employee’s physician, the employee’s work assignment may be changed if necessary to protect the health and safety of the employee and her child;

Requests for transfers of job duties will be reasonably accommodated if the job and security rights of others are not breached;

Temporary transfers due to health considerations will be granted when possible. However, the transferred employee will receive the pay that accompanies the job, as is the case with any other temporary transfer due to temporary health reasons;

Pregnancy leave usually begins when ordered by the employee’s physician. The employee must provide ARS with a certification from a health care provider. The certification indicating disability should contain:

The date on which the employee became disabled due to pregnancy;

The probable duration of the period or periods of disability; and

A statement that, due to the disability, the employee is unable to perform one or more of the essential functions of her position without undue risk to herself, the successful completion of her pregnancy, or to other persons.

Leave returns will be allowed only when the employee’s physician sends a release;

An employee will be allowed to use accrued sick time (if otherwise eligible to take the time) during a pregnancy disability leave. An employee will be allowed to use accrued vacation or personal time (if otherwise eligible to take the time) during a pregnancy disability leave; and

Duration of the leave will be determined by the advice of the employee’s physician, but employees disabled by pregnancy may take up to four months. Part-time employees are entitled to leave on a pro rata basis. The four months of leave includes any period of time for actual disability caused by the employee’s pregnancy, childbirth, or related medical condition. This includes leave for severe morning sickness and for prenatal care.

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Leave does not need to be taken in one continuous period of time and may be taken intermittently, as needed. Leave may be taken in increments of one day.

Under most circumstances, upon submission of a medical certification that an employee is able to return to work from a pregnancy disability leave, an employee will be reinstated to her same position held at the time the leave began or to an equivalent position, if available. An employee returning from a pregnancy disability leave has no greater right to reinstatement than if the employee had been continuously employed.

Coordination of PDL with Family/Medical Leave

If you take pregnancy disability leave and are eligible under the federal or state family and medical leave laws, ARS will maintain group health insurance coverage for up to a maximum of 12 workweeks (if such insurance was provided before the leave was taken) on the same terms as if you had continued to work. Leave taken under the pregnancy disability policy runs concurrently with family and medical leave under federal law, but not family and medical leave under California Law. If you are ineligible under the federal and state family and medical leave laws, while on pregnancy disability you will receive continued paid coverage on the same basis as other medical leave that the Company may provide and for which you are eligible. In some instances, the Company may recover premiums it paid to maintain health coverage for you if you fail to return to work following pregnancy disability leave.

If you are on pregnancy disability leave and are not eligible for continued paid coverage, or if paid coverage ceases after 12 workweeks, you may continue your group health insurance coverage through ARS in conjunction with federal COBRA guidelines by making monthly payments to ARS for the amount of the relevant premium. Contact the Human Resources Manager for further information.

Personal Leave

A personal leave of absence without pay may be granted at the discretion of ARS. Requests for personal leave should be limited to unusual circumstances requiring an absence of longer than two weeks. Approved personal absences of shorter duration are not normally treated as leaves, but rather as excused absences without pay.

Concurrent Personal and Family/Medical Leave

Any leave taken under this provision that qualifies as leave under the state and/or federal Family and Medical Leave Acts will be counted as family/medical leave and charged to your entitlement of 12 workweeks of family/medical leave in a 12-month period.

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Domestic Violence Leave

Employees who are victims of domestic violence are eligible for unpaid leave. You may request leave if you are involved in a judicial action, such as obtaining restraining orders, or appearing in court to obtain relief to ensure your health, safety, or welfare, or that of your child.

You should provide notice and certification of your need to take leave under this policy. Certification may be sufficiently provided by any of the following:

A police report indicating that the employee was a victim of domestic violence;

A court order protecting or separating the employee from the perpetrator of an act of domestic violence, or other evidence from the court or prosecuting attorney that the employee appeared in court; or

Documentation from a medical professional, domestic violence advocate, health-care provider, or counselor that the employee was undergoing treatment for physical or mental injuries or abuse resulting in victimization from an act of domestic violence.

ARS will, to the extent allowed by law, maintain the confidentiality of an employee requesting leave under this provision.

The length of unpaid leave an employee may take is limited to 12 weeks provided for in the federal Family and Medical Leave Act of 1993 for eligible employees.

Victims of Crime Leave

An employee who is themselves a victim or who is the family member of a victim of a violent felony or serious felony may take time off from work under the following circumstances:

The crime must be a violent or serious felony, as defined by law; and

You must be the victim of a crime, or you must be an immediate family member of a victim, a registered domestic partner of a victim, or the child of a registered domestic partner of a victim.

An immediate family member is defined as: a spouse, child, stepchild, brother, stepbrother, sister, stepsister, mother, stepmother, father or stepfather.

A registered domestic partner means a domestic partner who is registered in accordance with California state law.

The absence from work must be in order to attend judicial proceedings related to a crime listed above.

Before you are absent for such a reason, you must provide documentation of the scheduled proceeding. Such notice is typically given to the victim of the crime by a court or government agency setting the hearing, a district attorney or prosecuting attorney's office or a victim/witness office.

If advance notice is not possible, you must provide appropriate documentation within a reasonable time after the absence.

Any absence from work to attend judicial proceedings will be unpaid, unless you choose to take paid time off, such as accrued vacation or sick leave.

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Military Leave

Employees who wish to serve in the military and take military leave should contact their Manager or Human Resources for information about their rights before and after such leave. Under the Uniformed Services Employment and Re-employment Rights Act of 1994 you are entitled to reinstatement upon completion of military service, provided you return or apply for reinstatement within the time allowed by law and you are:

Active duty; Active duty for training; Initial active duty for training; Inactive duty training; Full-time National Guard duty; and The time required for examination to determine the fitness of the person for such duty.

Voluntary Civil Service Personnel

No employee shall be disciplined for taking time off to perform emergency duty as a volunteer firefighter, peace officer, or emergency rescue personnel. You are also eligible for unpaid leave for required training. If you are an official volunteer firefighter, please alert your supervisor that you may have to take time off for emergency duty. When taking time off for emergency duty, please alert your supervisor before doing so when possible.

Military Spouse Leave

Effective October 10, 2007 employees who work more than 20 hours per week and have a spouse in the Armed Forces, National Guard or Reserves who have been deployed during a period of military conflict are eligible for up to 10 unpaid days off when their spouse is on leave from military deployment.

Employees must request this leave in writing to Human Resources within two business days of receiving official notice that their spouse will be on leave. Employees requesting this leave are required to attach to the leave request written documentation certifying the spouse will be on leave from deployment.

Time Off for Voting

If an employee does not have sufficient time outside of working hours to vote in an official state-sanctioned election, the employee may take off enough working time to vote. Such time off shall be taken at the beginning or the end of the regular working shift, whichever allows for more free time, and the time taken off shall be combined with the voting time available outside of working hours to a maximum of two hours combined. Under these circumstances, an employee will be allowed a maximum of two hours of time off during an election day without loss of pay. When possible, an employee requesting time off to vote shall give his or her supervisor at least two days notice.

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School Activities

Employees are encouraged to participate in the school activities of their child(ren). The absence is subject to all of the following conditions:

Parents, guardians, or grandparents having custody of one or more children in kindergarten or grades one to 12 may take time off for a school activity;

The time off for school activity participation cannot exceed eight hours in any calendar month, or a total of 40 hours each school year;

Employees planning to take time off for school visitations must provide as much advance notice as possible to their supervisor;

If both parents are employed by ARS, the first employee to request such leave will receive the time off. The other parent will receive the time off only if the leave is approved by his or her supervisor;

Employees must use accrued vacation time in order to receive compensation for this time off;

Employees who do not have paid time off available will take the time off without pay, and

Employees must provide their supervisor with documentation from the school verifying that the employee participated in a school activity on the day of the absence for that purpose.

Suspension

If an employee who is the parent or guardian of a child facing suspension from school is summoned to the school to discuss the matter, the employee should alert his or her supervisor as soon as possible before leaving work. In agreement with California Labor Code Section 230.7, no discriminatory action will be taken against an employee who takes time off for this purpose.

Jury Duty and Witness Leave

We encourage all of our employees to fulfill their obligations as citizens of the community. An employee receiving a jury duty notice or subpoena should inform their manager immediately since it may be necessary to rearrange the work schedule during the employee’s absence from work. We will allow you unpaid time off for the duration of your duty. The Company shall have the discretion to allow employees to make up time by working on the weekend or evenings without reduction in pay. However, this will be considered only where a substitute employee is not required during normal working hours and the work productivity is not impaired by working when most businesses are closed.

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Health and Welfare Benefits It is the policy of the Company to provide regular employees (“Eligible employees”) with the following paid benefits. Part-time employees are not eligible for paid time off benefits. Part-time employees are those employees that regularly work less than 32 hours per pay week or less than 64 hours per pay period. Please see your benefits summary or individual plan summary description for a detailed explanation of Company benefits including eligibility information. The Company reserves the right to alter or delete those benefits at any time. After the completion of the first ninety (90) days of employment, all Salary Exempt and Salary Non-Exempt employees (except part time employees) are eligible for health and welfare benefits. Medical insurance is available through a Company-selected insurance carrier, and the employee is responsible for paying for 25% of the employee premium and 100% of dependent premiums. Additional voluntary insurance coverage is available at employee’s expense through an independent insurance agency. Contact Human Resources if you have any questions regarding insurance benefits. Vacation Eligible employees begin earning vacation time upon their hire date with their first pay period. However, vacation time cannot be used during the first ninety (90) days of employment. Eligible employees earn paid vacation leave for each pay period actually worked according to the following schedule:

Hourly Non-Exempt Employees

Months of Service Accrual Per Pay Period Total Annual Maximum Accrual 0 – 36 (0-3 years) 1.54 5 Days (40 Hours) 120 hours

36 – Over (3+ years) 3.08 10 Days (80 Hours) 160 hours

Salary Exempt and Salary Non-Exempt Employees

Months of Service Accrual Per Pay Period Total Annual Maximum Accrual

0 – 12 (0-1 yr) 1.54 5 Days (40 Hours) 120 hours

12 – 36 (1-3 yrs) 3.08 10 Days (80 Hours) 160 hours

36 – Over (3+ yrs) 4.62 15 Days (120 Hours) 200 hours

Exempt employees must take vacation in four-hour increments. Employees absent for four hours or more will have the corresponding amount of time deducted from their accrued vacation.

Vacations are intended to provide employees an annual period of rest and relaxation away from the job, and the Company encourages employees to take the time they earn in vacation each year. Employees may accumulate vacation and carry it over into the next year up to a maximum. Once an employee reaches his or her maximum accumulation, no more vacation will be earned until some of the accumulated time is used, and at no time may an employee accumulate more than the maximum number of hours of vacation.

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Scheduling of vacation leave must be submitted in writing and approved by your manager in advance. A two-week advance notice is expected when scheduling vacation time. When using vacation time, it cannot exceed one week (40 hours) for each request unless management gives special authorization. No vacation hours are earned during unpaid leaves of absence.

When notice of resignation is submitted you are not eligible for vacation time off prior to your termination date. An employee whose employment terminates will be paid for accrued unused vacation days on a pro rata basis.

Required Use of Vacation Before Unpaid Sick Leave

You are required to take accrued and unused vacation before taking unpaid leave, or having unpaid absences. Family and Medical Leave (under both state and federal law) is included in this requirement, unless the absence is pregnancy-related and you are receiving wage replacement through an employer-provided benefit.

If you are absent for a reason that qualifies you for Paid Family Leave (PFL) payments, you are required to first use any accrued and unused vacation, up to a maximum of two weeks in a 12-month period, unless you are receiving wage replacement through an employer-provided benefit. If you do not have accrued vacation, you will be required to use accrued sick leave for the first 7 days before PFL payments begin.

PFL benefits do not replace all of your usual wages. Your PFL benefits will be supplemented with any accrued and unused sick leave, unless you are receiving wage replacement through an employer-provided benefit. If you have no sick leave, or once you exhaust your sick leave, accrued and unused vacation will be used to supplement your PFL benefits.

Employees who are absent because of their own disability may be eligible for State Disability Insurance (SDI) benefits. SDI payments do not begin until after you have been absent from work for 7 calendar days. If you have accrued sick leave, sick leave will be used for the first 7 days before SDI payments begin, unless you are receiving wage replacement through an employer-provided benefit. If you do not have accrued sick leave, but do have accrued vacation, vacation will be substituted for the unpaid absence.

SDI benefits do not replace all of your usual wages. Your SDI benefits will be supplemented with any accrued and unused sick leave, unless you are receiving wage replacement through an employer-provided benefit. If you have no sick leave, or once you exhaust your sick leave, accrued and unused vacation will be used to supplement your SDI benefits.

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Paid Holidays

ARS observes the following six (6) paid holidays each year:

January 1 (New Year’s Day)

Memorial Day

July 4th (Independence Day)

Labor Day

Thanksgiving Day

Christmas Day

When a holiday falls on a Saturday or Sunday, it is usually observed on the preceding Friday or the following Monday. However, ARS may grant another day off in lieu of closing. Holiday observance will be announced in advance.

Each non-exempt employee’s eligibility for holiday pay begins after completion of his or her introductory period. To be eligible for holiday pay, you must be regularly scheduled to work on the day on which the holiday is observed and must work your regularly scheduled working days immediately preceding and immediately following the holiday, unless an absence on either day is approved in advance by your supervisor. If you are required to work on a paid scheduled holiday you will receive overtime pay (1.5 times the regular hourly pay rate).

Upon termination of employment, you will not be paid for any unused holidays. Your manager and Human Resources must approve any exceptions to this policy.

Worker’s Compensation

ARS, in accordance with state law, provides insurance coverage for employees in case of work-related injury. The workers’ compensation benefits provided to injured employees may include:

Medical care;

Cash benefits, tax free, to replace lost wages; and

Assistance to help qualified injured employees return to suitable employment.

To ensure that you receive any workers’ compensation benefits to which you may be entitled, you will need to:

Immediately report any work-related injury to your supervisor;

Seek medical treatment and follow-up care if required;

Complete a written Employee’s Claim for Workers Compensation Benefits (DWC Form 1) and return it to your Manager; and

Provide the Company with a certification from your health care provider regarding the need for workers’ compensation disability leave, as well as your eventual ability to return to work from the leave.

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Upon submission of a medical certification that an employee is able to return to work after a workers’ compensation leave, the employee under most circumstances will be reinstated to his or her same position held at the time the leave began, or to an equivalent position, if available. An employee returning from a workers’ compensation leave has no greater right to reinstatement than if the employee had been continuously employed rather than on leave. For example, if the employee on workers’ compensation leave would have been laid off had he or she not gone on leave, or if the employee’s position has been eliminated or filled in order to avoid undermining the Company’s ability to operate safely and efficiently during the leave, and no equivalent or comparable positions are available, then the employee would not be entitled to reinstatement.

An employee’s return depends on his or her qualifications for any existing openings. If, after returning from a workers’ compensation disability leave, an employee is unable to perform the essential functions of his or her job because of a physical or mental disability, the Company’s obligations to the employee may include reasonable accommodation, as governed by the Americans with Disabilities Act.

Disability Insurance

Each employee contributes through payroll tax to California’s state disability insurance programs. Disability insurance is mandated by the California Unemployment Insurance Code and administered by the Employment Development Department. Disability insurance is payable when you cannot work because of illness or injury not caused by employment at the Company. An additional tax funds the state’s Paid Family Leave program, and provides partial wage replacement for absences related to care of a family member, or bonding with a new child. Specific rules and regulations governing disability are available from the Human Resources Department.

Unemployment Compensation

ARS contributes thousands of dollars each year to the California Unemployment Insurance Fund on behalf of its employees.

Social Security

Social Security is an important part of every employee’s retirement benefit. ARS pays a matching contribution to each employee’s Social Security taxes.

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Management

Personnel Records

You have a right to inspect certain documents in your personnel file, as provided by law, in the presence of a Company representative at a mutually convenient time. No copies of documents in your file may be made, with the exception of documents that you have previously signed. You may add your comments to any disputed item in the file.

ARS will restrict disclosure of your personnel file to authorized individuals within the Company. Any request for information contained in personnel files must be directed to the Human Resources Department. Only the Human Resources Department is authorized to release information about current or former employees. Disclosure of personnel information to outside sources will be limited. However, ARS will cooperate with requests from authorized law enforcement or local, state, or federal agencies conducting official investigations and as otherwise legally required.

Driving Records

Each employee who drives a Company vehicle or drives their personal vehicle on company business must maintain an acceptable driving record and be insurable under the Company’s insurance policies if effect. All such employees must notify their immediate supervisor if their license is suspended or revoked. The Company or its insurance carrier will periodically obtain and review DMV records regarding the employee’s driving history and require evidence from employee that vehicle insurance is in effect.

Pre-Employment Background Screening

All management level employees must undergo a complete background screening prior to employment or promotion. This includes obtaining approval through our liability insurance carrier that the applicant is insurable through our current policy. Hiring or promotion is contingent upon a clean background screening. Only the Managing Partners can override this policy. The pre-employment/promotion background screening will be conducted by an independent consumer-reporting agency. The information received may include, but is not limited to, academic, residential, achievement, job performance, attendance, litigation, personal history, credit reports, driving records, and criminal history records.

Employment References and Employment Verification

The Human Resources Department will handle all requests for employment references and employment verification. No other employee, supervisor or manager is authorized to give any references regarding employees or former employees of the Company. If you receive such a request, you are not authorized to respond and must immediately refer or forward the request to the Human Resources Department. Human Resources will answer requests within the limits and requirements of the law.

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By policy, ARS discloses only the dates of employment and the title of the last position held of former employees. If you authorize the disclosure in writing, ARS also will inform prospective employers or creditors of the amount of salary or wage you last earned.

Wage Garnishments

It is the policy of the Company to comply with court orders, liens and wage assignments. If an employee’s wages are garnished it is due to a court order, lien or wage assignment as required by law.

Changes in Personal Information

ARS is required by law to keep current all employees’ names and addresses. Employees are responsible for notifying the Company in the event of a name or address change.

Open Door Policy

Suggestions for improving ARS are always welcome. At some time, you may have a complaint, suggestion, or question about your job, your working conditions, or the treatment you are receiving. Your good-faith complaints, questions, and suggestions also are of concern to the Company. We ask you to first discuss your concerns with your supervisor, following these steps:

Within a week of the occurrence, bring the situation to the attention of your immediate supervisor, who will then investigate and provide a solution or explanation.

If the problem persists, you may describe it in writing and present it to the Human Resources Manager, who will investigate and provide a solution or explanation. If you need assistance with your complaint, or you prefer to make a complaint in person, contact Human Resources. We encourage you to bring the matter to the Human Resources Manager as soon as possible after you believe that your immediate supervisor has failed to resolve it.

If the problem is not resolved, you may present the problem in writing to the Managing Partners of ARS, who will attempt to reach a final resolution. If you need assistance with the written complaint, contact Human Resources for help.

This procedure, which we believe is important for both you and the Company, cannot guarantee that every problem will be resolved to your satisfaction. However, ARS values your observations and you should feel free to raise issues of concern, in good faith, without the fear of retaliation.

Performance Evaluations

Each employee will receive periodic performance reviews conducted by his or her supervisor. Your first performance evaluation will take place after your introductory period. Subsequent performance evaluations will be conducted annually. The frequency of performance evaluations may vary depending upon length of service, job position, past performance, changes in job duties, or recurring performance problems.

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Your performance evaluations may review factors such as the quality and quantity of the work you perform, your knowledge of the job, your initiative, your work attitude, and your attitude toward others. The performance evaluations are intended to make you aware of your progress, areas for improvement, and objectives or goals for future work performance. Favorable performance evaluations do not guarantee increases in salary or promotions. Salary increases and promotions are solely within the discretion of ARS and depend upon many factors in addition to performance. After the review, you will be required to sign the evaluation report simply to acknowledge that it has been presented to you, that you have discussed it with your supervisor, and that you are aware of its contents.

Employee Property Inspection

Members of the management team may inspect an employee’s personal property, including but not limited to lockers, packages, purses, and backpacks, upon reasonable suspicion of unauthorized possession of ARS property.

Employment of Relatives

In order to avoid problems that may occur resulting from employment of friends and family members (friends – more than a passing acquaintance, siblings, spouses, parents, children, aunts, uncles and cousins), ARS has implemented policies governing the employment of friends and family members. No friend or family member will be hired if it will result in any of the following circumstances:

If such employment will result in friends or family members working at the same location If such employment will result in one friend or family member supervising another friend

or family member When it is deemed by ARS management that the situations may result in a conflict of

interest on the part of either employee ARS recognizes that personal relationships between mutually consenting adults may develop in the workplace. In the event that such a relationship develops, ARS will determine if it is necessary to transfer an employee to another location to avoid a potential conflict of interest. All supervisory and management personnel involved in hiring decisions are required to immediately disclose to the Company any potential conflict arising from the above policies.

Company Property

Any items provided at the Company’s expense are ARS property and must be maintained according to Company rules and regulations. They must be kept clean and are to be used only for work-related purposes. ARS reserves the right to inspect all Company property to ensure compliance with its rules and regulations, without notice to the employee and at any time, not necessarily in the employee’s presence.

Company voice mail and/or electronic mail (e-mail) are to be used for business purposes only. ARS reserves the right to monitor voice mail messages and e-mail messages to ensure compliance with this rule, without notice to the employee and at any time, not necessarily in the employee’s presence.

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ARS may periodically need to assign and/or change “passwords” and personal codes for voice mail, e-mail, network access and other program access. These communication technologies and related storage media and databases are to be used only for Company business and they remain the property of ARS. ARS reserves the right to keep a record of all passwords and codes used and/or may be able to override any such password system.

Prior authorization must be obtained before any Company property may be removed from the premises.

For security reasons, employees should not leave personal belongings of value unsecured in the workplace. Personal items are subject to inspection and search, with or without notice, with or without the employee’s prior consent.

Terminated employees should remove any personal items at the time they leave ARS. Personal items left in the workplace are subject to disposal if not claimed at the time of an employee’s termination.

Use of Electronic Media

ARS uses various forms of electronic communication including, but not limited to computers, e-mail, telephones, Internet, cell phones and PDAs. All electronic communications, including all software, databases, hardware, and digital files, remain the sole property of ARS and are to be used only for Company business and not for any personal use.

Electronic communication and media may not be used in any manner that would be discriminatory, harassing, or obscene, or for any other purpose that is illegal, against Company policy, or not in the best interest of the Company.

Employees who misuse electronic communications and engage in defamation, copyright or trademark infringement, misappropriation of trade secrets, discrimination, harassment, or related actions will be subject to discipline and/or immediate termination.

Employees may not install personal software on Company computer systems.

All electronic information created by any employee using any means of electronic communication is the property of ARS and remains the property of ARS. Personal passwords may be used for purposes of security, but the use of a personal password does not affect the Company’s ownership of the electronic information.

ARS will override all personal passwords if necessary for any reason.

ARS reserves the right to access and review electronic files, messages, mail, and other digital archives, and to monitor the use of electronic communications as necessary to ensure that no misuse or violation of Company policy or any law occurs.

Employees are not permitted to access the electronic communications of other employees or third parties unless directed to do so by Company Managing Partners or Human Resources.

No employee may install or use anonymous e-mail transmission programs or encryption of e-mail communications.

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Employees who use devices on which information may be received and/or stored, including but not limited to cell phones, cordless phones, portable computers, fax machines, and voice mail communications are required to use these methods in strict compliance with the trade secrets and confidential communication policy established by the Company. These communications tools should not be used for communicating confidential or sensitive information or any trade secrets.

Access to the Internet, websites, and other types of Company-paid computer access are to be used for Company-related business only. The Managing Partners must approve any information about ARS, its products or services, or other types of information that will appear in the electronic media about the Company before the information is placed on an electronic information resource that is accessible to others.

Questions about access to electronic communications or issues relating to security should be addressed to Human Resources.

Telephone Usage

Employees are required to limit personal phone calls, both incoming and outgoing, to emergencies or essential personal business and keep them as brief as possible. Please make any personal phone calls while on a scheduled break whenever possible. Long distance calls of a personal nature are not permitted. Cell phone usage by store personnel in the stores or working areas is prohibited during working hours. The Company shall have the authority to request reimbursement from an employee for personal long distance telephone charges.

Customer/Co-worker Communication Etiquette

ARS is an equal opportunity employer. Co-workers, when speaking amongst themselves, shall not be prohibited from speaking in any language or dialect in the workplace. However, when communicating with English speaking co-workers, customer or other members of the public, employees will be required to speak English. As such, all employees must be able to communicate effectively with co-workers, management, customers, government inspectors and emergency personnel in English.

In consideration of other employees and customers, and in the Company’s best interest, loud, excessive and/or disruptive talking will be prohibited without respect to language or dialect.

Parking

Employees may park their vehicles in designated areas, if space permits. If space is unavailable, employees must park in permissible public areas in the vicinity of ARS property. Employees may not use parking areas specifically designated for customers, vendors, Company vehicles, or reserved for managers. ARS is not responsible for any loss or damage to employee vehicles or contents while parked on Company property.

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Surveillance Monitoring

Parking areas may be monitored with video or other surveillance for purposes of protecting Company property only. This surveillance system is in no way intended to provide employees with personal security.

Off-Duty Use of Facilities

Employees are prohibited from remaining on ARS premises or making use of Company facilities while not on duty. Employees are expressly prohibited from using Company facilities, Company property, or Company equipment for personal use.

Recreational, Social or Athletic Activities

The company and its insurance carrier will not be liable for the payment of workers compensation benefits for any injury which arises out of an employee’s voluntary participation in any off-duty recreational, social or athletic activity which is not a part of the employee’s work related duties. Mere use of Company facilities for recreational, social or athletic activity is not considered basis for claiming a work-related injury. Employees who use Company facilities for such purposes do so at their own risk.

Smoking

For the health, comfort and safety of all employees, smoking is prohibited inside all ARS facilities and buildings. Smoking is permitted only in a designated area outside our facilities. Please see your supervisor for designated areas. Smoking may only be done during authorized breaks or meal periods. Proposition 65 Notification In accordance with California Safe Drinking Water and Toxic Enforcement Act of 1986 (Proposition 65), individuals must be warned of exposure to certain chemicals known to the State to cause cancer or reproductive toxicity (Section 25249.6 of the California Health and Safety Code). Some products stored in this facility may contain chemicals known to the State to cause cancer or reproductive toxicity. Some processes performed in this facility may involve chemicals know to the State to cause cancer or reproductive toxicity. California law requires the following warnings:

WARNING: This are contains chemicals known to the State of California to cause cancer, birth defects or reproductive harm.

The following warning applies to the designated smoking areas outside of this facility:

WARNING: This facility permits smoking, and tobacco smoke is known to the State of California to cause cancer.

If you have any questions regarding this information, please contact your manager.

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Guests and Visitors

Visits from friends and family are to be kept to a minimum, in order to preserve an appropriate work environment. It is extremely important that the impression left with ARS customers and visitors is that of a professional organization with the highest standards of conduct.

Solicitation and Distribution of Literature

In order to ensure efficient operation of the Company’s business and to prevent disruption to employees, we have established control of solicitations and distribution of literature on Company property. ARS has enacted rules applicable to all employees governing solicitation, distribution of written material, and entry onto the premises and work areas. All employees are expected to comply strictly with these rules. Any employee who is in doubt concerning the application of these rules should consult with his or her supervisor.

No employee shall solicit or promote support for any cause or organization during his or her working time or during the working time of the employee or employees at whom such activity is directed.

No employee shall distribute or circulate any written or printed material in work areas at any time, or during his or her working time or during the working time of the employee or employees at whom such activity is directed.

Under no circumstances will non-employees be permitted to solicit or to distribute written material for any purpose on Company property.

Housekeeping

All employees are expected to keep their work areas clean and organized. People using common areas such as lunchrooms and restrooms are expected to keep them sanitary. Please clean up after meals and dispose of trash properly.

Store Merchandise Purchases by Employees

Employees are allowed to purchase store merchandise (excluding alcohol, tobacco and lottery tickets – see policy below) under the following conditions:

Employees are allowed free fountain beverages and coffee while on duty. All other store merchandise must be purchased prior to consuming or leaving the store.

Employees must have a receipt for any item purchased while on the premises. Receipt should be taped to item and visible whenever possible.

Any violation in this policy will be considered theft of store merchandise and will result in disciplinary action up to and including termination.

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Alcohol, Tobacco & Lottery Sales to Employees

Employees are allowed to purchase alcohol, tobacco and lottery tickets through ARS under the following conditions:

Employees may not purchase alcohol, tobacco or lottery tickets unless they are clocked out and off shift.

Employees must have another employee (management whenever possible) ring up their purchases for them.

Employees must have a receipt for any product purchased on their person while on the premises.

Any violation of the above conditions will result in disciplinary action up to and including termination.

Alcohol and Tobacco Transaction Procedure

ARS strives to be a responsible member of each community it operates in. As such, the Company’s policy is not to sell alcohol or tobacco products to any customer that is not of legal age to make such a purchase. This policy is intended to prevent all such sales.

When a customer presents an alcohol or tobacco product for purchase, at the point of sale, the Cashier will proceed as follows:

1. The Cashier will visually determine whether or not the customer appears to be at least forty (40) years of age.

2. If the customer appears to be at least forty (40) years of age, the Cashier can complete the sale without requesting identification unless in the case of an alcohol sale another circumstance exists that would require a declination of sale as indicated in this manual or in the State of California sales guidelines for alcohol products (Section 25658.4 Business and Professions Code).

3. If the customer does not appear to be at least forty (40) years of age, the Cashier will request a valid form of identification as identified by the State of California (Section 25660 Business and Professions Code) to determine the customer’s age. These acceptable forms of identification will also be covered in the employee’s basic training.

4. If there is any uncertainty regarding the customer’s age, the Cashier will err on the side of caution and require valid identification.

5. The Cashier will visually compare the photo on the identification with the customer to confirm that the customer is indeed the person represented on the identification.

6. If after manually checking the identification the Cashier determines the customer to be of legal age to purchase the alcohol or tobacco product, he/she will enter the customer’s birth date into the POS system. If the date entered establishes the customer to be of legal age to purchase either alcohol (21) or tobacco (18), the POS system will complete the sale.

7. If the Cashier has any reservations about the identification presented, he/she will politely decline to make the sale.

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Failure of any employee (Cashier or Manager) to support these policies and follow the procedures exactly as outlined in this policy will result in immediate termination and possible criminal prosecution.

In addition to the age restrictions on sales of alcoholic beverages, the following additional restrictions are required by law:

Hours of Sale

Alcoholic beverages may only be sold from 6:00am on one day until 2:00am on the following day. Violation of this law can result in criminal charges including fine and/or jail time. (Caution: Some stores must stop selling alcoholic beverages earlier than 2:00am because of local laws or special conditions (restrictions) on the ABC license.) (Sections 25631, 25632, 25671 and 23800-23805 Business and Professions Code)

Sales to Obviously Intoxicated Persons

Alcoholic beverages may not be sold or given to any person who looks or acts intoxicated (even if they are not driving). Violation of this law can result in criminal charges including fine and/or jail time. In addition, sale of alcoholic beverages to an underage, obviously intoxicated person can result in a civil suit. (Sections 25602(a), 25617 and 25602.1 Business and Professions Code)

ABC License Privileges

Employees and customers are prohibited from drinking alcoholic beverages in the store or an adjacent property immediately outside the store. This includes before, during or after your shift. All alcoholic beverages sold must be in sealed, unopened bottles, packages or containers. Employees are prohibited from selling alcoholic beverages to a person if they know they are going to re-sell the alcoholic beverage to someone else. Employees may not sell more than fifty-two (52) gallons of wine to any one customer at any one time. (Sections 23300. 23355, 23393, 23394 and 23402 Business and Professions Code and Rule 27, California Code of Regulations)

ARS enforces a zero tolerance policy on any violations of the above stated alcohol and tobacco transaction procedure, laws or guidelines. In addition, it is the Company’s policy to support and aid in the prosecution of any employee found to be in violation of the above stated policy, laws and guidelines.

Loss Prevention/Theft Policy

ARS strives to hire qualified and trustworthy employees. As we have extended an offer of employment, we expect that you are an honest, trusted and valued employee. With this said, some employment relationships still end in termination due to theft issues. The Company’s loss prevention program includes various tools to detect theft by employees. These tools include but are not limited to surveillance video cameras, review of daily reports for unusual item corrections and voids as well as eyewitness statements.

If an employee is found to be in violation of our theft policy, they will be terminated immediately and prosecuted to the full extent of the law.

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It is important for all employees to understand that witnessing and failing to report theft by a co-worker or customer if also a violation of our theft policy. A knowing witness to theft that fails to report the incident to their supervisor or Human Resources can be terminated from employment and prosecuted by the law as an accomplice. If an employee witnesses or suspects theft from a co-worker or customer, it is their duty to report the incident immediately to their supervisor and/or Human Resources to avoid disciplinary action.

Situations that can lead to disciplinary action up to and including termination and prosecution include but are not limited to:

Theft or other acts of dishonesty or carelessness which result in the loss of money, inventory or other Company property

Numerous voids, tem corrects and returns that cannot be justified

Failure to follow cash handling procedures such as making timely safe drops as instructed by store management, leaving safes unlocked or not keeping designated areas secure

Not following proper shift check-in and check-out procedures as instructed by store management

Witnessing theft by a co-worker or customer and not reporting it to management

Any other financial loss found to be the direct result of employee carelessness or negligence

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Employee Conduct

Confidentiality

Each employee is responsible for safeguarding the confidential information obtained during employment.

In the course of your work, you may have access to confidential information regarding ARS, its suppliers, its customers, or perhaps even fellow employees. You have a responsibility to prevent revealing or divulging any such information unless it is necessary for you to do so in the performance of your duties. Access to confidential information should be on a “need-to-know” basis and must be authorized by your supervisor. Any breach of this policy will not be tolerated and the Company may take legal action.

Customer Relations

Employees are expected to be polite, courteous, prompt, and attentive to every customer. When an employee encounters an uncomfortable situation that he or she does not feel capable of handling, their supervisor should be called immediately.

Ours is a service business and all of us must remember that the customer always comes first. Our customers ultimately pay all of our wages. Remember, while the customer is not always right, the customer is never wrong.

Customers are to be treated courteously and given proper attention at all times. Never regard a customer's question or concern as an interruption or an annoyance. You must respond to inquiries from customers, whether in person or by telephone, promptly and professionally.

Never place a telephone caller on hold for an extended period. Direct incoming calls to the appropriate person and make sure the call is received.

Through your conduct, show your desire to assist the customer in obtaining the help he or she needs. If you are unable to help a customer, find someone who can.

All correspondence and documents, whether to customers or others, must be neatly prepared and error-free. Attention to accuracy and detail in all paperwork demonstrates your commitment to those with whom we do business.

Never argue with a customer. If a problem develops or if a customer remains dissatisfied, ask your supervisor, the District Manager, Human Resources or other Management to intervene.

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Vendor Procedure

ARS vendors visit our sites regularly for restocking and stock change outs. As an ARS employee, you are responsible for representing our Company during these transactions. All employees will communicate with vendors in a courteous, positive and professional manner. The following items are required during vendor transactions:

Any vendor delivering product to the store must sign in on the vendor log.

All product delivered by a vendor should be visually checked in and matched against the delivery invoice. The delivery person should replace any damaged product immediately. If the quantity of product delivered does not match the delivery invoice, the delivery driver should bring the missing product or correct the invoice on the spot.

Employee (Store Manager whenever possible) should inspect any items removed from the store, including empty boxes. Make sure that no product is being hidden in any items leaving the store with the vendor.

Vendors should not block the entrance to the store with their vehicles when making deliveries

If a vendor is removing product from the store and issuing a credit memo, the product should be counted and compared against the credit memo before the product leaves the store.

Any negative comments or unprofessional behavior exhibited by any vendor should be reported to management immediately.

Serving our customers is a priority over receiving and checking in a vendor.

If a vendor is not following any of the above policies, please contact your manager or other management personnel to resolve the issue.

Conflicts of Interest

All employees must avoid situations involving actual or potential conflict of interest. Personal or romantic involvement with a competitor, supplier, or subordinate employee of ARS, which impairs an employee's ability to exercise good judgment on behalf of the Company, creates an actual or potential conflict of interest. Supervisor-subordinate romantic or personal relationships also can lead to supervisory problems, possible claims of sexual harassment, and morale problems.

Notice

An employee involved in any of the types of relationships or situations described in this policy should immediately and fully disclose the relevant circumstances to his or her immediate supervisor, or Human Resources, for a determination about whether a potential or actual conflict exists. If an actual or potential conflict is determined, AR may take whatever corrective action appears appropriate according to the circumstances. Failure to disclose facts shall constitute grounds for disciplinary action up to and including termination.

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Conducting Personal Business

Employees are to conduct only ARS business while at work. Employees may not conduct personal business or business for another employer during their scheduled working hours.

Drug and Alcohol Abuse

ARS is concerned about the use of alcohol, illegal drugs, or controlled substances as it affects the workplace. Use of these substances, whether on or off the job can detract from an employee’s work performance, efficiency, safety, and health, and therefore seriously impair the employee’s value to the Company. In addition, the use or possession of these substances on the job constitutes a potential danger to the welfare and safety of other employees and exposes the Company to the risks of property loss or damage, or injury to other persons.

Furthermore, the use of prescription drugs and/or over-the-counter drugs also may affect an employee’s job performance and may seriously impair the employee’s value to the Company.

The following rules and standards of conduct apply to all employees either on Company property or during the workday (including meals and rest periods). Behavior that violates Company policy includes:

Possession or use of an illegal or controlled substance, or being under the influence of an illegal or controlled substance while on the job;

Driving a Company vehicle while under the influence of alcohol; and

Distribution, sale, or purchase of an illegal or controlled substance while on the job.

Violation of these rules and standards of conduct will not be tolerated. ARS also may bring the matter to the attention of appropriate law enforcement authorities.

In order to enforce this policy, ARS reserves the right to conduct searches of Company property or employees and/or their personal property, and to implement other measures necessary to deter and detect abuse of this policy.

An employee’s conviction on a charge of illegal sale or possession of any controlled substance while off Company property will not be tolerated because such conduct, even though off duty, reflects adversely on ARS. In addition, the Company must keep people who sell or possess controlled substances off Company premises in order to keep the controlled substances themselves off the premises.

Any employee who is using prescription or over-the-counter drugs that may impair the employee’s ability to safely perform the job, or affect the safety or well-being of others, must notify a supervisor of such use immediately before starting or resuming work.

ARS will encourage and reasonably accommodate employees with alcohol or drug dependencies to seek treatment and/or rehabilitation. Employees desiring such assistance should request a treatment or rehabilitation leave. The Company is not obligated, however, to continue to employ any person whose performance of essential job duties is impaired because of drug or alcohol use, nor is the Company obligated to re-employ any person who has participated in treatment and/or rehabilitation if that person’s job performance remains impaired as a result of dependency. Additionally, employees who are given the opportunity to seek treatment and/or rehabilitation, but fail to successfully overcome their dependency or problem,

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will not automatically be given a second opportunity to seek treatment and/or rehabilitation. This policy on treatment and rehabilitation is not intended to affect the Company’s treatment of employees who violate the regulations described previously. Rather, rehabilitation is an option for an employee who acknowledges a chemical dependency and voluntarily seeks treatment to end that dependency.

Prohibited Conduct

The following conduct is prohibited and will not be tolerated by ARS and will result in disciplinary procedures up to and including immediate termination. This list of prohibited conduct is illustrative only; other types of conduct that threaten security, personal safety, employee welfare and Company operations also may be prohibited.

Falsifying employment records, employment information, or other Company records;

Recording the work time of another employee or allowing any other employee to record your work time, or falsifying any time card, either your own or another employee’s;

Theft and deliberate or careless damage or destruction of any Company property, or the property of any employee or customer;

Removing or borrowing Company property without prior authorization;

Unauthorized use of Company equipment, time, materials, or facilities;

Provoking a fight or fighting during working hours or on Company property;

Participating in horseplay or practical jokes on Company time or on Company premises;

Carrying firearms or any other dangerous weapons on Company premises at any time;

Engaging in criminal conduct whether or not related to job performance;

Causing, creating, or participating in a disruption of any kind during working hours on Company property;

Insubordination, including but not limited to failure or refusal to obey the orders or instructions of a supervisor or member of management, or the use of abusive or threatening language toward a supervisor or member of management;

Using abusive language at any time on Company premises;

Failing to notify a supervisor when unable to report to work;

Unreported absence of three work days

Failing to obtain permission to leave work for any reason during normal working hours;

Failing to observe working schedules, including rest and lunch periods;

Failing to provide a physician’s certificate when requested or required to do so;

Sleeping or malingering on the job;

Making or accepting personal telephone calls, including cell phone calls, of more than three minutes in duration during working hours, except in cases of emergency;

Working overtime without authorization or refusing to work assigned overtime;

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Wearing disturbing, unprofessional or inappropriate styles of dress or hair while working;

Violating any safety, health, security or Company policy, rule, or procedure;

Committing a fraudulent act or a breach of trust under any circumstances; and

Committing of or involvement in any act of unlawful harassment of another individual.

This statement of prohibited conduct does not alter the Company’s policy of at-will employment. Either you or ARS remain free to terminate the employment relationship at any time, with or without reason or advance notice.

Off-Duty Conduct

While ARS does not seek to interfere with the off-duty and personal conduct of its employees, certain types of off-duty conduct may interfere with the Company’s legitimate business interests. For this reason, employees are expected to conduct their personal affairs in a manner that does not adversely affect the Company’s or their own integrity, reputation or credibility. Illegal or immoral off-duty conduct by an employee that adversely affects the Company’s legitimate business interests or the employee's ability to perform his or her job will not be tolerated and will result in disciplinary procedures up to and including termination.

While employed by ARS, employees are expected to devote their energies to their jobs with the Company. The following types of employment elsewhere are strictly prohibited:

Additional employment that conflicts with an employee’s work schedule, duties, and responsibilities at the Company;

Additional employment that creates a conflict of interest or is incompatible with the employee's position with the Company;

Additional employment that impairs or has a detrimental effect on the employee’s work performance with the Company;

Additional employment that requires the employee to conduct work or related activities on Company property during the employer's working hours or using Company facilities and/or equipment; and

Additional employment that directly or indirectly competes with the business or the interests of the Company.

Employees who wish to engage in additional employment that may create a real or apparent conflict of interest must submit a written request to ARS explaining the details of the additional employment. If the additional employment is authorized, ARS assumes no responsibility for it. ARS shall not provide workers’ compensation coverage or any other benefit for injuries occurring from or arising out of additional employment. Authorization to engage in additional employment can be revoked at any time.

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Punctuality and Attendance

As an employee of ARS, you are expected to be punctual and regular in attendance. Any tardiness or absence causes problems for your fellow employees and your supervisor. When you are absent, others must perform your assigned work.

Employees are expected to report to work as scheduled, on time, and prepared to start work. Employees also are expected to remain at work for their entire work schedule, except for meal periods or when required to leave on authorized Company business. Late arrival, early departure, or other unanticipated and unapproved absences from scheduled hours are disruptive and must be avoided. Excessive absenteeism or tardiness will result in disciplinary action up to and including termination. Excessive, for the purpose of this policy is defined as more than three (3) absences or tardies within a 6 month period or at the discretion of the Human Resources Department in conjunction with other management personnel.

Call-In Procedure

If you are unable to report for work on any particular day, you must under all but the most extenuating circumstances follow these procedures:

Call your supervisor at least 3 hours before the time you are scheduled to begin working for that day.

You must speak with your Manager or Assistant Manager; you may not call in to any other co-worker.

In all cases of absence or tardiness, employees must provide their supervisor with an honest reason or explanation.

Employees also must inform their supervisor of the expected duration of any absence.

If you call less than 3 hours before your scheduled time to begin work and do not arrive in time for your assigned shift, you will be considered tardy for that day. Any reported absence due to illness of 3 days or more requires a doctor’s note prior to employee’s return. Excessive absenteeism or tardiness, whether excused or not, will not be tolerated. If you fail to report for work without any notification to your supervisor and your absence continues for a period of three (3) days ARS will consider that you have voluntarily abandoned or quit your employment.

Dress Code and Other Personal Standards

First impressions are lasting. In order to enhance our professional appearance we issue work attire to our store personnel. This will help to present an image that is consistent with our professional service philosophy.

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General Hygiene Requirements:

Clean teeth, fresh breath, use of effective deodorant and a daily bath or shower are required.

Body spray, perfume and after-shave may only be worn in moderation. Due to the service nature of our business, we must be respectful of others who may have an allergy to certain scents and textures.

Fingernails should be clean, trimmed and polish (if applicable) should be neutral colors.

Jewelry is permissible in moderation as long as it does not become a potential safety hazard.

Any form of body piercing (except ear lobe with a maximum of one piercing per lobe) or tattoos visible to customers is not allowed while on duty.

For men: hair must be above the collar. Sideburns may not extend below the side of the ear. A clean-shaven appearance is preferred; however, well-groomed facial hair is permitted if approved by your manager.

For women: hair must be neatly styled and maintained. Make-up should be used in moderation.

Uniforms

On-site personnel (Cashiers, Asst. Store Managers, Store Managers) are required to wear the following while on duty:

Black or khaki pants (no jeans)

Black or khaki shorts (must order from Store Manager only)

Shell shirt

Shell hat (optional)

Black, skid resistant shoes (no open toe or open heel)

Name badge

While on duty, your uniform must be clean, pressed, un-stained and free of pins or personal buttons. Shirts must be tucked in at all times while on duty. Failure to adhere to the dress standards and uniform policy will result in disciplinary action up to termination.

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Wages

Paychecks are normally available by 8:00 am at your home site. If you observe an error on your check, please report it immediately to your supervisor.

All employees of ARS are paid every other Friday for work performed during the previous two-week pay period. If a regular payday falls on a holiday, employees will be paid on the last business day prior to the holiday.

Direct Deposit

ARS offers automatic payroll deposit for all employees. You may begin and stop automatic payroll deposit at any time. To begin automatic payroll deposit, you must complete a form (available from your supervisor) and return it to your supervisor at least 5 days before the pay period for which you would like the service to begin. You should carefully monitor your payroll deposit statements for the first two pay periods after the service begins.

To stop automatic payroll deposit, complete the form available from your supervisor and return it at least 5 days before the pay period for which you would like the service to end. You will receive a regular payroll check on the first pay period after the receipt of the form, provided it is received no later than 5 days before the end of the pay period.

Work Schedules

Your supervisor will assign your individual work schedule. All employees are expected to be at their workstations at the start of their scheduled shifts, ready to work.

Exchanging work schedules with other employees is discouraged. However, if you need to exchange schedules, notify your supervisor, who may authorize an exchange if possible. Work schedule exchanges will not be approved for the mere convenience of an employee or if the exchange interferes with normal operations or results in excessive overtime.

The workweek begins at 12:01 a.m. Saturday and ends at midnight on Friday.

Timekeeping

All non-exempt employees are required to record time worked for payroll purposes. Employees must record their own time at the start and at the end of each work period, including before and after the lunch break. Employees also must record their time whenever they leave the building for any reason other than ARS business. The employee and a supervisor must initial any changes on the timecard. Employee must sign each completed timecard.

Punching another employee’s timecard, allowing another employee to punch your timecard, or altering a timecard is not permissible and is subject to disciplinary action including termination.

Any errors on your timecard should be reported immediately to your supervisor.

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Overtime for Non-Exempt Employees

Employees may be required to work overtime as necessary. Only actual hours worked in a given workday or workweek can apply in calculating overtime. All overtime work must be previously authorized by a supervisor. ARS provides compensation for all overtime hours worked by non-exempt employees in accordance with state and federal law as follows:

All hours worked in excess of eight hours in one workday or 40 hours in one workweek will be treated as overtime. A workday begins at 12:01 am. and ends at midnight 24 hours later. Workweeks begin each Saturday at 12:01 am;

Compensation for hours in excess of 40 for the workweek, or in excess of eight and not more than 12 for the workday, and for the first eight hours on the seventh consecutive day of work in one workweek, shall be paid at a rate one and one-half times the employee's regular rate of pay;

Compensation for hours in excess of 12 in one workday and in excess of eight on the seventh consecutive workday in a workweek shall be paid at double the regular rate of pay; and

Exempt employees may have to work hours beyond their normal schedules, as work demands require. No overtime compensation will be paid to exempt employees.

Meal and Rest Periods

It is the policy of ARS to ensure all non-exempt employees are provided with meal and rest periods as required.

No employee shall work for a period of more than five (5) hours without an unpaid meal period of thirty (30) minutes. The employee will be relieved of all work duties during this meal period. A 10-minute, paid rest period must be taken approximately halfway through any work period of 3 and ½ hours or more. For example, an employee working an eight (8) hour shift would receive two ten (10) minute paid breaks (one to be taken approximately half way through the first four (4) hours and one to be taken approximately halfway through the second four (4) hours) and also an unpaid thirty (30) minute meal break (to be taken within the first five (5) hours of the shift). Non-exempt employees who work more than three and one-half (3 ½) hours but less than five (5) hours in any one day are entitled to receive one ten (10) minute break approximately halfway through their shift.

When a work period of not more than six (6) hours will complete the day’s work, the meal period may be waived by mutual consent of the employer and the employee.

Under no circumstances shall a meal period be missed without a valid and approved written waiver. Questions regarding meal period waivers may be directed to your supervisor or the Human Resources Department.

If an employee works more than six (6) hours and is unable to take an off-duty meal period due to being the only employee on shift (such as graveyard), the employee will receive an extra hour of pay for having missed the required meal period. This one hour of extra pay will replace the previous shift differential given to graveyard shift employees.

Pay Advances

ARS does not permit advances against paychecks or against unaccrued vacation.

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Safety and Health

All employees are responsible for their own safety, as well as that of others in the workplace. To help us maintain a safe workplace, everyone must be safety-conscious at all times. Report all work-related injuries or illnesses immediately to your supervisor or to the Human Resources Department if supervisor cannot be reached. In compliance with California law, and to promote the concept of a safe workplace, ARS maintains an Injury and Illness Prevention Program. The Injury and Illness Prevention Program is available for review by employees and/or employee representatives in the Managing Partner’s office.

In compliance with Proposition 65, ARS will inform employees of any known exposure to a chemical known to cause cancer or reproductive toxicity.

Security

ARS has developed guidelines to help maintain a secure workplace. Be aware of persons loitering for no apparent reason in parking areas, walkways, entrances and exits, and service areas. Report any suspicious persons or activities to police. Secure your desk or office at the end of the day. When called away from your work area for an extended length of time, do not leave valuable and/or personal articles in or around your workstation that may be accessible. The security of facilities as well as the welfare of our employees depends upon the alertness and sensitivity of every individual to potential security risks. You should immediately notify your supervisor when unknown persons are acting in a suspicious manner in or around the facilities, or when keys are missing.

Workplace Violence

ARS has adopted the following workplace violence policy to ensure a safe working environment for all employees.

The Company has a zero tolerance for acts of violence and threats of violence. Without exception, acts and threats of violence are not permitted. All such acts and threats, even those made in apparent jest, will be taken seriously, and will lead to discipline up to and including termination.

Possession weapons on Company premises and at Company-sponsored events shall constitute a threat of violence.

It is every employee’s responsibility to assist in establishing and maintaining a violence-free work environment. Therefore, each employee is expected and encouraged to report any incident which may be threatening to you or your co-workers or any event which you reasonably believe is threatening or violent. You may report an incident to any supervisor, manager or the Human Resources Department.

A threat includes, but is not limited to, any indication of intent to harm a person or damage Company property. Threats may be direct or indirect, and they may be communicated verbally or nonverbally. The following are examples of threats and acts that shall be considered violent – this list is in no way all-inclusive:

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Example Type of Threat

Saying, “Do you want to see your next birthday?” Indirect

Writing, “Employees who kill their supervisors have the right idea.” Indirect

Saying, “I’m going to punch your lights out.” Direct

Making a hitting motion or obscene gesture Nonverbal

Displaying weapons Extreme

Stalking or otherwise forcing undue attention on someone, whether romantic or hostile

Extreme

Taking actions likely to cause bodily harm or property damage Acts of violence

Heat Illness

The Company is concerned with employee health and safety. Employees who work outside may be exposed to extreme temperatures or adverse working conditions, particularly in the summer months. All supervisors are trained in the prevention of heat illness. Please refer to the Company’s Injury Illness and Prevention Program or talk to your supervisor for details on how to ensure you are protected from heat illness dangers. Inclement Weather/Natural Disasters

In the event of severe weather or a natural disaster that prevents employees from safely traveling to and from work, the following leave policies will apply:

Inclement weather: Conditions that excuse absences from work include: road closure, whiteout conditions or severe flooding. If weather conditions prevent you from safely traveling to work, you must notify your supervisor by phone, if telephone service is functional, or by any other available means.

Natural disasters: In the event of a natural disaster such as earthquake, fire, flooding, or explosion, the office will be closed if the building is damaged or highways leading to the office are damaged. For instructions on reporting to another location, contact your supervisor immediately, if possible.

Recreational Activities and Programs

ARS or its insurer will not be liable for payment of workers’ compensation benefits for any injury that arises out of an employee’s voluntary participation in any off-duty recreational, social, or athletic activity that is not part of the employee’s work-related duties.

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Termination

Voluntary Resignation

Voluntary resignation results when an employee voluntarily quits his or her employment at ARS, or fails to report to work for three consecutively scheduled workdays without notice to, or approval by, his or her supervisor. All Company-owned property, including keys, uniforms and identification badges must be returned immediately upon termination of employment.

Involuntary Termination and Progressive Discipline

Violation of ARS policies and rules may warrant disciplinary action. The Company has established a system of progressive discipline that includes verbal warnings, written warnings, and suspension. The system is not formal and ARS may, in its sole discretion, utilize whatever form of discipline is deemed appropriate under the circumstances, up to, and including, termination of employment. The Company’s policy of progressive discipline in no way limits or alters the at-will employment relationship.

Reductions in Force

Under some circumstances, ARS may need to restructure or reduce its workforce. If restructuring our operations or reducing the number of employees becomes necessary, the Company will attempt to provide advance notice, if possible, to help prepare affected individuals. If possible, employees subject to layoff will be informed of the nature of the layoff and the foreseeable duration of the layoff, whether short-term or indefinite.

In determining which employees will be subject to layoff, ARS will take into account, among other things, operation and requirements, the skill, productivity, ability, and past performance of those involved, and also, when feasible, the employee’s length of service.

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Confirmation of Receipt

I have received my copy of the Company’s employee handbook. I understand and agree that it is my responsibility to read and familiarize myself with the policies and procedures contained in the handbook.

I understand that except for employment at-will status, the Company can change any and all policies or practices at any time. ARS reserves the right to change my hours, wages, and working conditions at any time. I understand and agree that other than the Managing Partners of ARS, no manager, supervisor, or representative of the Company has authority to enter into any agreement, express or implied, for employment for any specific period of time, or to make any agreement for employment other than at-will; only the Managing Partners have the authority to make any such agreement and then only in writing, signed by one or both of the Managing Partners.

I understand and agree that nothing in the employee handbook creates or is intended to create a promise or representation of continued employment and that employment at ARS is employment at-will; employment may be terminated at the will of either the Company or myself. My signature certifies that I understand that the foregoing agreement on at-will status is the sole and entire agreement between ARS and myself concerning the duration of my employment and the circumstances under which my employment may be terminated. It supersedes all prior agreements, understandings, and representations concerning my employment with ARS.

Employee’s Name _________________________________________________________

Employee’s Signature_______________________________________________________

Date ____________________________

Witnessing Supervisor or HR Name ___________________________________________

Witness Signature _________________________________________________________

Date ____________________________

Site # __________