Employee Handbookmarket for immediate marketing benefit and at disposition, optimal financial gain....

Employee Handbook

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Table of Contents Page

Section: Introduction

Welcome 5

History 6

Company Leadership Team 7 – 10

Foreward 11

Mission Statement, Vision Statement and Statement of Principles 12 – 13

Section: General Information

Employment at Will 14

Open Communication 15

Equal Employment 16

Harassment and/or Discrimination 17 – 18

Nonfraternization 19

Drug Free Workplace and Substance Abuse 20 – 21

Tobacco Use 22

Weapons 23

Violence in the Workplace 24

Search 25

Confidential and Proprietary Information 26

Ethics and Conflicts of Interest 27

Solicitation 28

Bulletin Boards 29

Antitrust 30

Visitors 31

Contact with News Media 32

Parking 33

Respectful Workplace 34 – 35

Section: Employment

Authorization to Hire 36

Pre-Employment Drug Screening 37

Background Checks 38

Employment Contracts 39

Employment Eligibility Documents 40

New Employee Orientation 41

Hours of Work 42

Attendance and Punctuality 43 – 44

Introductory Period 45

Employment Records 46

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Personal Appearance 47 – 48

Job Descriptions 49

Performance Reviews 50

Suggestions 51

Transfers / Promotions 52

Reductions in Force 53

Employment of Relatives 54

Employment Applications 55

Inclement Weather 56

Other Employment 57

Use of Company Premises 58

Use of Company Property and Materials 59

E-Mail and Voice Mail 60

Use of Personal Electronic Devices 61

Use of Computers and the Internet 62 – 63

Social Media 64 – 65

Use of Company Vehicles 66

Travel and Entertainment 67 – 69

Telephone Monitoring 70

Personal Property 71

Personal Conduct 72 – 73

Corrective Action 74 – 75

Leaving the Organization 76

References 77

Reinstatement after Break in Service 78

Tools and/or Supplies 79

Section: Compensation

Wage and Salary Administration 80

Employee Classification 81

Payday 82

Direct Deposit 83

Time Reporting 84

Overtime 85

Call Time 86

Signing Bonuses 87

Referral Bonuses 88

Incentive Awards 89

Payroll Advances / Loans 90

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Section: Benefits

Vacation 91

Holidays 92

Sick Leave 93

Military / Reserve Leave 94

Bereavement (Funeral) Leave 95

Jury Duty / Witness Service 96

Eligibility for Benefits 97

Health and Welfare Benefits 98

Group Insurance Programs 99 – 100

Profit Sharing Plan 101

Family Medical Leave (FMLA) 102 – 104

COBRA 105 – 107

Employee Recognition Programs 108 – 109

Tuition Reimbursement 110

Service Awards 111

Voting 112

Employee Apartments 113

Section: Safety

Injury / Illness on the Job 114

Workers’ Compensation 115 – 116

Temporary Modified Duty 117

Security and Loss Prevention 118

Section: Other Information

Statutory Conflicts 119

Policy Changes 120

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Policy: Welcome

Policy No.: 001

Effective: October 1, 2010

Revised:

WELCOME

You have been selected to be a member of a diverse and experienced team within the Professional

Equities, Inc. (PEI) family. Your skills and professional experience is what got you to this point and your

hard work, honesty and dedication to professional property management is what will allow you to grow

with us.

As you begin your career with PEI, please take the time to learn from our more experienced team

members. We find that working with a mentor provides a better opportunity for training. Never be afraid

to ask questions of your peers or your supervisor.

A career with PEI can be fun and challenging with the potential to grow with us. We are excited to have

you on board and wish you the very best in your new position!

Robert E. Rives Gregory L. Rives Chairman and CEO President

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Policy: History

Policy No.: 002


Revised:

HISTORY

In founding Professional Equities, Inc. (PEI) in 1969, Robert E. Rives set out to fulfill a vision of creating

a real estate services firm across multiple industry disciplines - be it as a general partner, property

manager or broker.

After more than four decades of strength, stability and achievement, Professional Equities is well

positioned to extend its legacy of leadership. The nationally credentialed executive team of PEI brings

decades of specialized experience to every real estate engagement. Supporting them is a sophisticated IT

infrastructure that assures detailed project accounting and instant access to the key short- and long-term

financial data needed to set the optimal balance between reinvestment in the asset and cash distributions

to owners. In short, Professional Equities sweats the details because we believe it ultimately drives

financial success.

Over the years, PEI has also come to perfect special capabilities that are major contributors to its success.

The first is the ability to analyze the market readiness of one or multiple properties, quickly assess

deficiencies and needs, then prioritize the steps required to restore the property to competitiveness.

Another is to develop a value-added business plan tailored to favorably position a property within its

market for immediate marketing benefit and at disposition, optimal financial gain. Typically, its focus is

to maintain a community as an attractive physical asset and to treat residents well to encourage lease

renewal. Also, the property records it maintains are painstakingly accurate and complete.

Professional Equities has also developed a penchant for capitalizing on special opportunities presented by

the peaks and valleys of evolving markets. Over the years it has developed hundreds of new apartments

and condominiums, converted vacant buildings to office use; and on numerous occasions after

resurrecting a property, developed a fast-track marketing program and found a buyer for it.

The company's success continues to earn its industry acclaim. Among honors received from the St. Louis

Apartment Managers Association and the Home Builders Association of Greater St. Louis and Eastern

Missouri are "Apartment Manager of the Year," "Best Apartment Community" and "Best Management

Office." Small Business Magazine honored PEI as a “Winning Workplace” in October 2012.

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Policy: Company Leadership Team

Policy No.: 003


Revised:

COMPANY LEADERSHIP TEAM

Robert E. Rives

Chairman and Chief Executive Officer

Robert Rives founded Professional Equities, Inc. (PEI) in 1969 and is the current chairman and chief

executive officer. His knowledge of the economic underpinnings of multi-family, office and mini-

warehouse storage properties plus his decades of experience in real estate management enables PEI to

accept multiple on-site engagements and quickly identify the action steps required to bring an asset to

market competitiveness.

Rives is a founding member of the Economical Housing Organization, a non-profit group that provides

housing for large and/or economically disadvantaged families. He is also a director of Rainbow Village

which provides housing and employment opportunity for those with developmental disabilities.

A member of the Home Builders Association of St. Louis, Rives is a licensed real estate broker in

Missouri.

He holds a bachelor's degree from Southeast Missouri State University.

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Gregory L. Rives

President After working his way up company ranks, Gregory Rives became president of PEI in 2006.

In his almost three decades of service to the company, Rives was instrumental in the acquisition and

management of multiple multi-family properties, self-storage facilities and public golf courses totaling

more than $45 million in assets under management.

His plan for the firm is to continue to effectively manage the current portfolio while acquiring additional

properties through third-party fee management engagement and/or acquisition or development.

Additionally, Rives manages the day-to-day operations of the firm and heads it development and

acquisition arm. His vast knowledge of benchmarks in the St. Louis asset management market allows

Professional Equities to quickly identify attractive acquisition opportunities and tailor reinvestment plans

that will ultimately enable such properties to achieve optimal valuation over the long term.

Rives is a licensed real estate broker-officer in Missouri.

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Gregory T. Smart, CPM®

Executive Vice President & General Manager

As executive vice president and general manager of PEI, Gregory Smart oversees the day-to-day

operations of the firm's entire apartment and self storage portfolio, topped by 10 multi-family properties

totaling almost 1,400 units and three self storage facilities totaling 904 units. All told, he has successfully

guided the on- or off-premise management of multi-family properties of varying sizes in multiple metro

St. Louis sub-markets for more than one decade.

Smart holds the certified property manager (CPM®) designation from the international Institute of Real

Estate Management and has served on its Chapter Board of Directors and Vice President of Legislative

Affairs. Additionally, he has served on the Board of Directors for the St. Louis Apartment Association

and Missouri Growth Association.

The United States Navy veteran is a member of the American Legion.

Smart holds a bachelor's degree in business administration from the University of Missouri St. Louis.

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Kathy M. Hamby

Vice President of Acquisitions & Human Resources

Kathy Hamby joined PEI in 1985 and currently serves as vice president of acquisitions and human

resources. In that wide-ranging capacity she focuses on asset acquisition/project feasibility as well as on

corporate staffing, training and information technology for the firm, which employs more than 70 people.

She holds the certified professional occupancy (CPO®) designation from the National Affordable Housing

Management Association and is currently a candidate for the certified property manager (CPM®)

designation with the Institute of Real Estate Management.

Hamby is a licensed real estate broker-officer in Missouri.

She holds a bachelor's degree in business from Northeastern Oklahoma State University.

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Policy: Foreword

Policy No.: 004


Revised:

FOREWORD

This employee handbook reflects the policies, procedures and benefits of Professional Equities, Inc. The

purposes of this handbook are:

To provide management with the information necessary to fulfill its responsibilities to its employees;

and

To provide for fairness and equity in the treatment of its employees.

It is expected that all employees will become familiar with the contents of this handbook, especially

managers so that they will be able to answer employee questions as they arise and apply the appropriate

policies and procedures as the occasion requires. Managers also are responsible for ensuring that the

employees who work for them are informed of these policies and procedures, understand them, and abide

by them.

As a matter of policy, all employees will be provided an Employee Handbook and sign the Handbook

Acknowledgment form. This form shall be filed in each employee’s personnel file.

Questions about application, interpretation, or clarification regarding any specific policies or procedures

are to be directed to Kathy Hamby, Vice President of Human Resources.

The various policies and procedures outlined are intended as general guidelines for normal situations and

are not intended to be applied without management judgment in a specific situation, nor are they intended

to be all-inclusive or limiting upon PEI’s right to take whatever action it deems most appropriate in a

specific situation.

The contents of this Employee Handbook supersede any prior Handbook, letters, memoranda, or prior

policies regarding any subject matter addressed in this Employee Handbook. This Handbook is the

property of PEI. If you leave the employment of the Company, the Handbook must be returned prior to

receiving your final paycheck.

Because such policies and procedures are subject to change with or without prior notice, the information

provided in this Policy and Procedure Manual is not intended to create a contract of employment nor

should it be construed as the terms and conditions of a contract of employment with the organization.

Robert E. Rives Gregory L. Rives Chairman and CEO President

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Section: Introduction Policy: Mission Statement Policy No.: 005 Effective: October 1, 2010 Revised:

MISSION STATEMENT

To identify and understand the unique needs of each client and go beyond the expected in meeting

those needs;

To provide each employee with the training and support needed to grow professionally and

personally;

To adhere to the highest standards of honesty and ethical behavior toward customers, clients,

employees, suppliers, and the community; and

To lead our industry by continually seeking and obtaining a competitive advantage based on quality

management services, technology and streamlined processes and procedures that will generate

increasingly higher revenue and profits for the organization and its clients.

VISION STATEMENT

Our vision is to “Build lasting partnerships with our customers by enhancing the value of their

relationship with us”.

Every customer interaction is an opportunity to strengthen the customer relationship, which creates added

value to the community, in which they live.

In order to achieve our vision, we must provide exceptional service to our customers on an equal and

consistent basis and by doing so; we will exceed the expectations of our customers.

FUNDAMENTAL PRINCIPLES

We believe our customers, clients, employees, suppliers, and communities are entitled to share in the

economic good created by our concerted effort. To this end:

FOR OUR CUSTOMERS AND CLIENTS, WE WILL STRIVE TO:

Work consistently and diligently to increase our knowledge of our customers and clients and their

requirements;

Give the best possible service to our customers and clients in prompt response to their needs; and

Conduct business with our customers and clients consistently with honesty and integrity and without

discrimination.

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FOR OUR EMPLOYEES, WE WILL STRIVE TO:

Recognize the intrinsic value of each employee as an individual;

Provide working conditions and an environment that will maintain the dignity of the individual;

Treat our employees and applicants for employment without discrimination as to race, color, religion,

gender, sexual orientation, national origin, age, veteran status, or handicap/disability;

Provide training opportunities that permit employees to develop their abilities to perform their jobs in

an efficient and more meaningful manner;

Provide each employee with the opportunity for career growth and advancement within the

organization based upon individual ability and performance;

Recognize the value of employees who thoroughly understand their job responsibilities so that

individual initiative and thought will be encouraged in the accomplishment of their tasks; and

Provide opportunities commensurate with the organization’s goals and standards.

FOR OUR SUPPLIERS, WE WILL STRIVE TO:

Establish and maintain mutually beneficial long-term relationships that result in maximum value to

the organization and our suppliers;

Give prompt, courteous reception to our suppliers when calling on us;

Honor and maintain any confidences disclosed;

Conduct business with fairness and integrity; and

Conduct business objectively and with independence, avoiding any gifts or favors that would affect

independence of action.

FOR OUR COMMUNITIES, WE WILL STRIVE TO:

Support the economic climate of the community by purchasing materials and services locally

whenever possible and economically feasible;

Encourage our employees to assume their civic responsibilities; and

Be a good neighbor by being mindful of the company’s ecological responsibilities.

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Policy: Employment at Will

Policy No.: 100


Revised:

EMPLOYMENT AT WILL

Nothing contained in the Employee Handbook or in any other materials or information distributed by the

organization creates a contract of employment between an employee and Professional Equities, Inc.

Employment is on an at-will basis. This means that employees are free to resign their employment at any

time for any reason, and Professional Equities, Inc. retains the right to sever the working relationship at

any time with or without cause or notice, and without following any specific procedures.

No statements to the contrary, written or oral made either before or during an individual’s employment

can change this. No individual supervisor, manager, or officer can make a contrary agreement except for

the Chief Executive Officer, and even then, such an agreement must be set forth in a written employment

contract with the employee, signed by the Chief Executive Officer.

The policies in this manual are intended for all employees of Professional Equities, Inc. The organization

reserves the right to revise, change, or terminate policies or procedures at any time, with or without

notice.

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Policy: Open Communication

Policy No.: 101


Revised:

OPEN COMMUNICATION

At Professional Equities, Inc. we believe that communication is at the heart of good employee relations.

Employees should share their concerns, seek information, provide input, and resolve work-related issues

by discussing them with their direct supervisor until they are fully resolved. It may not be possible to

achieve the result an employee wants, but the supervisor needs to attempt to explain in each case why a

certain course of action is preferred. If an issue cannot be resolved at this level, the employee is welcome

to discuss the issue with the manager of his/her property. The supervisor should set up a time for both of

them to meet with the manager. If the employee’s concern cannot be resolved with the manager, the

employee may discuss it with the general manager of the organization. The manager should schedule that

meeting for the employee.

Regardless of the situation, the employee should be able to openly discuss any work-related problems and

concerns without fear of retaliation. Managers and supervisors are expected to listen to employee

concerns, to encourage their input, and to seek resolution to the issues and concerns. Often this will

require setting a meeting in the near future. Managers and/or supervisors are to set these meetings as

quickly as possible and employees are expected to understand that issues and concerns may not always be

addressed at the moment they arise. Discussing these issues and concerns with management will help to

find a mutually acceptable solution for nearly every situation.

If an employee has a concern about discrimination and/or harassment, Professional Equities, Inc. has set

up special procedures to report and address these issues. Those reporting procedures are set forth in

Professional Equities, Inc. Harassment and/or Discrimination Policy.

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Policy: Equal Employment

Policy No.: 102


Revised:

EQUAL EMPLOYMENT

Our goal at Professional Equities, Inc. is to recruit, hire, and maintain a diverse workforce. Equal

employment opportunity is good business as well as being the law and applies to all areas of employment,

including recruitment, selection, hiring, training, transfer, promotion, termination, compensation, and

benefits.

As an equal opportunity employer, Professional Equities, Inc. does not discriminate in its employment

decisions on the basis of race, religion, color, national origin, gender, sexual orientation, age, military

status, disability, or on any other basis that would be in violation of any applicable federal, state, or local

law. Furthermore, Professional Equities, Inc. will make reasonable accommodations for qualified

individuals with known disabilities unless doing so would result in an undue hardship, safety, and/or

health risk.

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Policy: Harassment and/or Discrimination

Policy No.: 103


Revised:

HARASSMENT AND/OR DISCRIMINATION

Professional Equities, Inc. strives to maintain a workplace that fosters mutual employee respect and

promotes harmonious, productive working relationships. Our organization believes that discrimination,

harassment, and/or retaliation in any form constitute misconduct that undermines the integrity of the

employment relationship. Therefore, Professional Equities, Inc. prohibits discrimination and/or

harassment that is sexual, racial, or religious in nature or is related to anyone’s gender, national origin,

age, sexual orientation, disability, or any other basis protected by federal, state, or local law. This policy

applies to all employees throughout the organization and to all individuals who may have contact with

any employee of this organization. Furthermore, Professional Equities, Inc. will make reasonable

accommodations for qualified individuals with known disabilities unless doing so would result in an

undue hardship, health, or safety concern.

Unwelcome sexual advances, requests for sexual favors, or other verbal, visual, or physical conduct of a

harassing and/or discriminatory nature will constitute harassment and/or discrimination when the person

involved feels compelled to submit to that misconduct in order to keep his/her position, to receive

appropriate pay, or to benefit from certain employment decisions. If this type of misconduct interferes

with an employee’s work or creates an intimidating, hostile, or offensive work environment, it also may

be considered harassment and/or discrimination. This behavior can include but is not limited to

suggestive or insulting noises, facial expressions, vulgar language, nicknames, slurs, derogatory

comments, cartoons, jokes, written materials, and offensive gestures or touching.

Professional Equities, Inc. expects that everyone will act responsibly to establish a pleasant and friendly

work environment. However, if an employee feels he/she has been subjected to any form of harassment

and/or discrimination, the employee should report that conduct to his/her immediate supervisor, another

member of management, or Human Resources within three calendar days of the offense. Employees are

not required to approach the person who is harassing and/or discriminating against them, and they may

bypass any offending member of management. The person the harassment or discrimination is reported to

will take the necessary steps to initiate an investigation of the discrimination and/or harassment claim.

Professional Equities, Inc. will conduct its investigation in as confidential a manner as possible.

Interviews, allegations, statements, and identities will be kept confidential to the extent possible and

allowed by law. However, Professional Equities, Inc. will not allow the goal of confidentiality to be a

deterrent to an effective investigation. A timely resolution of each complaint will be reached and

communicated to the employee. Appropriate corrective action, up to and including termination, will be

taken promptly against any employee engaging in discrimination and/or harassment. The corrective

action issued will be proportional to the severity of the conduct. The alleged harasser’s employment

history and any similar complaints of prior unlawful discrimination and/or harassment will be taken into

consideration.

Professional Equities, Inc. prohibits retaliation of any kind against employees, who, in good faith, report

harassment and/or discrimination or assist in investigating such complaints. If an employee feels he/she

has been subjected to any form of retaliation, the employee should report that conduct to his/her

immediate supervisor, another member of management, or Human Resources within three calendar days

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of the offense. Employees are not required to approach the person who is retaliating against them, and

they may bypass any offending member of management.

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Policy: Nonfraternization

Policy No.: 104


Revised:

NONFRATERNIZATION

While Professional Equities, Inc. encourages amicable relationships between members of management

and their subordinates, it recognizes that involvement in a romantic relationship may compromise or

create a perception that compromises a member of management’s ability to perform his/her job. Any

involvement of a romantic nature between an officer, director, manager, supervisor, or agent of the

organization and anyone he/she supervises, either directly or indirectly, is prohibited. Violation of this

policy will lead to corrective action up to and including termination of the management individual

involved in the relationship. Team members who were in a romantic relationship prior to the date of this

policy are considered exempt.

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Policy: Drug-Free Workplace and Substance Abuse

Policy No.: 105


Revised:

DRUG-FREE WORKPLACE AND SUBSTANCE ABUSE

Professional Equities, Inc. is committed to providing a safe, healthy, and efficient working

environment for all employees and those who do business with Professional Equities, Inc. as well as

protecting its reputation in the community.

To help achieve this goal, employees are prohibited from:

Possessing, distributing, selling, manufacturing, or being under the influence of any illegal drug;

Consuming alcoholic beverages while on company premises, customer premises, in company

vehicles, or while on company business or time unless specifically approved by the Chief

Executive Officer; and

Abusing inhalants or prescription drugs or possessing prescription drugs that have not been

prescribed for the employee by a physician.

An employee who violates this policy is subject to corrective action up to and including termination of

employment. Use of some drugs is detectable for several days. Detection of such drugs or the presence of

alcohol will be considered being “under the influence.” Refusal to submit to a drug and/or alcohol screen

is grounds for immediate termination or can be considered a “voluntary termination.”

Employees using prescription drugs according to a physician’s instructions or using over-the-counter

drugs for medicinal purposes are required to notify the Vice President of Human Resources regularly in

the event such drugs would impair their physical, mental, emotional, or other faculties.

The organization’s substance-abuse program includes several components to support its efforts to remain

drug-free, including:

Supervisory training;

Drug testing of all applicants;

Drug testing after accidents involving injury and/or property damage; and

Drug testing when a supervisor suspects that an employee is “under the influence” during working

hours.

All information relating to drug and/or alcohol screens is to be kept strictly confidential. The information

will be kept in the employee’s medical file, which will be maintained separately from the employee’s

personnel file. These medical files will be kept locked and secured and access will be limited to certain

individuals in the organization. Under no circumstances should the results of a drug and/or alcohol screen

be discussed with individuals who do not have a work-related need to know.

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Employees involved in an accident or contributing to an accident or injury causing more than $1,000 in

damage to property or that requires medical attention away from the premises will be screened to

determine whether the employee tests positive for drugs and/or alcohol.

If a supervisor suspects that an individual is at work and under the influence of alcohol and/or drugs, the

supervisor should notify the Vice President of Human Resources to seek authorization to test the

employee. The supervisor will be granted permission to test the employee if at least two sufficient

objective symptoms exist to indicate the employee may be under the influence of drugs and/or alcohol.

Symptoms would include slurred speech, uneven gait, impaired mental functions, extremely dilated

pupils, smell of alcohol, evidence of drugs and/or alcohol about the employee’s person or in the

employee’s work vicinity, negative performance patterns, excessive or unexplained absenteeism or

tardiness, etc.

The official should make a written record of the employee’s name, the date, time, and symptoms present.

This documentation should be attached to the test results and kept in the confidential medical file as

justification for why the tests were performed. Supervisors should take the employee to the facility for

testing and call someone to drive him/her home.

While the organization does not condone the abuse of alcohol, prescription drugs, and/or use of illegal

drugs, Professional Equities, Inc. does recognize that addiction to drugs and/or alcohol can be treated. If

an employee recognizes a personal addiction or abuse problem and seeks assistance from management in

advance of detection, the organization will assist the employee in seeking treatment. The confidential

nature of the employee’s counseling and rehabilitation for drug and/or alcohol abuse will be preserved.

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Policy: Tobacco Use

Policy No.: 106


Revised:

TOBACCO USE

The use of tobacco products including but not limited to cigarettes, cigars, pipes, and smokeless tobacco

is prohibited inside any of the organization’s facilities or vehicles. The use of tobacco products will be

allowed in company-designated areas outside any facility. Appropriate signage will be placed at

entrances to all business centers advising employees and visitors that Professional Equities, Inc. maintains

a tobacco-free environment. The management of each facility will designate areas outside the building

where the use of tobacco products will be allowed. This policy relates to all work areas at all times,

including before and after normal working hours. Smoking is prohibited in any occupied or vacant

apartment or any common area space within a building.

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Policy: Weapons

Policy No.: 107


Revised:

WEAPONS

Despite some laws that allow people to carry firearms in public, Professional Equities, Inc. prohibits

anyone from possessing or carrying weapons of any kind on company property, in company vehicles, or

while on company time without expressed written consent of the President. This includes:

Any form of weapon or explosive;

All firearms; and

All illegal knives or knives with blades that are more than six inches in length.

If an employee is unsure whether an item is covered by this policy, please contact Human Resources.

Employees are responsible for making sure that any item they possess is not prohibited by this policy.

Police officers, security guards, and other individuals who have been given consent by the organization to

carry a weapon on the property will be allowed to do so.

While the organization has a policy prohibiting weapons, nothing in this policy shall be construed as

creating any duty or obligation on the part of the organization to take any actions beyond those required

of an employer by existing law.

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Policy: Violence in the Workplace

Policy No.: 108


Revised:

VIOLENCE IN THE WORKPLACE

The safety and security of all employees is of primary importance at Professional Equities, Inc. Threats,

stalking, threatening and abusive behavior, or acts of violence against employees, visitors, customers,

and/or company facilities or property by anyone on company property, on a company-controlled site, or

in connection with company employment or company business will not be tolerated. Violations of this

policy will lead to corrective action up to and including termination and/or referral to appropriate law

enforcement agencies for arrest and prosecution. Professional Equities, Inc. reserves the right to take any

necessary legal action to protect its employees.

Any person who makes threats, stalks, exhibits threatening behavior, or engages in violent acts on

company premises, on a company-controlled site, or in connection with company employment or

company business shall be removed from the premises as quickly as safety permits and shall remain off

company premises pending the outcome of an investigation. Following investigation, the organization

will initiate an immediate and appropriate response. This response may include but is not limited to

suspension and/or termination of any business relationship, reassignment of job duties, suspension or

termination of employment, and/or civil or criminal prosecution of the person or persons involved.

All employees are responsible for notifying management of any threats that they witness or receive or that

they are told another person witnessed or received. Even without a specific threat, all employees should

report any behavior they have witnessed that they regard as potentially threatening or violent or that could

endanger the health or safety of an employee when the behavior has been carried out on company

premises, on a company-controlled site, or is connected to company employment or company business.

Employees are responsible for making this report regardless of the relationship between the individual

who initiated the threatening behavior and the person or persons being threatened. The organization

understands the sensitivity of the information requested and has developed confidentiality procedures that

recognize and respect the privacy of the reporting employee.

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Policy: Search

Policy No.: 109


Revised:

SEARCH

Access to Professional Equities, Inc. premises is conditioned upon its right to inspect or search the person,

vehicle, or personal effects of any employee or visitor. This may include any employee’s office, desk,

file cabinet, closet, locker, computer files, or similar places. Because even a routine inspection or search

might result in the viewing of an employee’s personal possessions, employees are encouraged not to bring

any item of personal property into the workplace that they do not want revealed to the organization.

Any prohibited materials (or materials that may be found to be prohibited) that are found in an

employee’s possession during an inspection or search will be collected by management and placed in a

sealed container or envelope. The employee’s name, date, circumstances under which the materials were

collected, and by whom they were collected will be recorded and attached to the container or written upon

the envelope. If, after further investigation, the collected materials prove not to be prohibited, they will

be returned to the employee and the employee will sign a receipt for the contents. If the prohibited

materials prove to be illegal and/or dangerous, they will not be returned to the employee, but will be

turned over to the appropriate law enforcement agency.

From time to time and without prior announcement, inspections or searches may be made of anyone

entering, leaving, or on the premises or property of the company (including alcohol and/or drug screens or

other testing). Refusal to cooperate in such an inspection or search (including alcohol and/or drug

screens) is grounds for termination.

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Policy: Confidential and Proprietary Information

Policy No.: 110


Revised:

CONFIDENTIAL AND PROPRIETARY INFORMATION

Company property includes not only tangible property, but also intangible property such as information.

Proprietary information includes all information obtained by our employees during the course of their

work. Employees of Professional Equities, Inc. will receive and have access to information that is

confidential in nature to the organization, its customers, clients, and vendors. This information includes

but is not limited to research, strategic plans, personnel files, employment records, marketing data,

formulas, and customer, vendor and client lists. Employees are not to disclose any such information to (a)

any other person in the organization unless there is a legitimate business reason for doing so or (b) any

person outside the organization unless management has expressly stated that the information can be

disclosed to that person. This obligation exists even after the employee leaves the organization.

The organization has developed certain proprietary products, written information, and/or processes that

are unique to the organization. Keeping such information from competitors plays an important part in our

success. The organization protects proprietary information by restricting employee and visitor access to

certain designated areas and access to documents to only those who have business reasons to view them.

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Policy: Ethics and Conflicts of Interest

Policy No.: 111


Revised:

ETHICS AND CONFLICTS OF INTEREST

Employees are expected to use good judgment, adhere to high ethical standards, and avoid situations that

create an actual or perceived conflict between their personal interests and those of the organization.

Professional Equities, Inc. needs to know that the transactions employees participate in are ethical and

within the law, both in letter and in spirit.

Professional Equities, Inc. recognizes that different organizations have different codes of ethics.

However, just because a certain action may be acceptable by others outside of Professional Equities, Inc.

as “standard practice,” that is by no means sufficient reason to assume that such practice is acceptable at

our organization. There is no way to develop a comprehensive, detailed set of rules to cover every

business situation. The tenets in this policy outline some basic guidelines for ethical behavior at

Professional Equities, Inc. Whenever employees are in doubt, they should consult with their manager.

Conflicts of interest or unethical behavior may take many forms including but not limited to the

acceptance of gifts from competitors, vendors, potential vendors, or customers of the organization. Gifts

may only be accepted if they have a nominal retail value and only on appropriate occasions (for example,

a holiday gift). Employees are cautioned not to accept any form of remuneration or nonbusiness-related

entertainment, nor may employees sell to third parties any information, products, or materials acquired

from the organization. Employees may engage in outside business activities provided such activities do

not adversely affect the organization or the employee’s job performance and the employee does not work

for a competitor, vendor, or customer. Employees are prohibited from engaging in financial participation,

outside employment, or any other business undertaking that is competitive with or prejudicial to the best

interests of Professional Equities, Inc. Employees may not use proprietary and/or confidential

information for personal gain or to the organization’s detriment nor use assets, funds or labor for personal

use.

If an employee or someone with whom the employee has a close personal relationship has a financial or

employment relationship with a competitor, vendor, potential vendor, or customer of the organization, the

employee must disclose this fact in writing to Human Resources. The organization will determine what

course of action must be taken to resolve any conflict it believes may exist. If the conflict is severe

enough, Professional Equities, Inc. may be forced to ask the employee to tender his/her resignation.

Professional Equities, Inc. has sole discretion to determine whether such a conflict of interest exists.

Employees are encouraged to seek assistance from their managers with any legal or ethical concerns.

However, employees may call Human Resources at (636) 519-7255 ext. 210 to report anything that they

cannot discuss with their manager.

28


Policy: Solicitation

Policy No.: 112


Revised:

SOLICITATION

Face-to-face solicitation by an employee of another employee is prohibited during the working time of

either person. Working time is defined as time when an employee’s duties require that he/she be engaged

in work tasks. The physical distribution of printed materials or literature of any nature shall be limited to

nonwork areas at nonwork times. No literature shall be posted anywhere on the premises without the

authorization of Human Resources. Solicitation and/or distribution of material on company property by

persons not employed by Professional Equities, Inc. are prohibited at all times. The distribution of

material by electronic means is subject to different restrictions found in Professional Equities, Inc. E-Mail

and Voice Mail Policy and Use of computers and the Internet Policy.

29


Policy: Bulletin Boards

Policy No.: 113


Revised:

BULLETIN BOARDS

Professional Equities, Inc. uses bulletin boards to communicate important business information such as

safety rules, statutory and legal notices, company policies, and management memos. Each employee has

the responsibility to read the information that is posted. Your manager or supervisor can give you the

location of the bulletin board nearest your work area. Employees shall not post material on bulletin

boards.

30


Policy: Antitrust

Policy No.: 114


Revised:

ANTITRUST

Professional Equities, Inc. believes strongly in competition and abides in all respects with all antitrust

laws. Accordingly, it is imperative that all employees avoid discussing sensitive topics. Agreements to

fix prices, allocate markets, engage in boycotts, and/or refusal to deal with third parties (negotiate and/or

do business with) are automatically illegal under the antitrust laws. Discussions with competitors about

price fixing, quality ratings of suppliers, and discussions that may cause a competitor to cease purchasing

from a particular supplier or selling to a particular customer should be avoided. There also should be no

discussions that might be interpreted as a dividing up of territories. An antitrust violation does not require

proof of a formal agreement. A discussion of a sensitive topic, such as price, followed by actions by those

involved or present at the discussion is enough to show a price-fixing conspiracy. As a result, employees

should be very circumspect when speaking to competitors and business colleagues, especially at

professional meetings, gatherings, or conventions.

31


Policy: Visitors

Policy No.: 115


Revised:

VISITORS

No visitors are allowed on company property unless authorized by management. Company premises

include offices, shops, grounds, warehouses, storage areas, and parking lots. All authorized visitors are

required to go to the business center and notify the person they are visiting upon their arrival.

Any visitor refusing to follow any rules or regulations will be escorted from the premises. Employees are

required to direct and escort any strangers who are unescorted out of the building or to the reception area.

Police assistance will be called if necessary. Employees bringing unauthorized personnel onto company

property will be subject to corrective action up to and including termination.

32


Policy: Contact with News Media

Policy No.: 116


Revised:

CONTACT WITH THE NEWS MEDIA

It has always been Professional Equities, Inc. policy to cooperate as fully as possible with news media

inquiries and to communicate truthfully with the media on company matters appropriate for public

knowledge. To ensure accuracy regarding the organization or its actions, the CEO or his/her designee

will serve as the only authorized media spokesperson for the organization. No other employee may grant

an interview concerning company business to any form of media without permission from the CEO.

33


Policy: Parking

Policy No.: 117


Revised:

PARKING

Parking space is provided for all employees in the designated parking areas. Employees should lock all

vehicle doors every day. Professional Equities, Inc. will not assume any responsibility for employee

vehicles or their contents. Unauthorized parking in reserved parking spaces or other restricted areas may

result in towing the vehicle at the owner’s expense as well as subject the employee to corrective action.

All employees who live on-site at a property owned or managed by Professional Equities, Inc. must report

to the Property Manager of that property the year, make, model, color and license plate number of each

vehicle owned. Employee owned/leased vehicles parked on company property must be in good working

order and condition, licensed and insured at all times.

Employees are required to park away from the business center in less desirable spaces in order to open up

parking spaces for our prospective residents.

34


Policy: Respectful Workplace

Policy No.: 118


Revised:

RESPECTFUL WORKPLACE

Professional Equities, Inc. strives to maintain a workplace that fosters mutual respect and promotes

harmonious, productive working relationships. Our organization believes in going beyond what is

required by law and expects our employees to treat each other in a manner in which they would like to be

treated and to give to others the respect that is due to every individual whether it is a fellow employee,

member of management, customer, vendor, or visitor to our premises. Therefore, Professional Equities,

Inc. prohibits any behavior that is discourteous or demeaning to other employees, vendors, customers and

visitors. Disrespectful behavior may include, but not be limited to, the following:

Jokes that demean another individual or group of individuals;

Name calling or nicknames that may be offensive;

Taking credit for another individual’s work or ideas;

Refusing to communicate or speak with another individual;

Offensive verbal, visual, or physical conduct;

Repeated negative comments about others either orally or in writing;

Threatening another individual;

Invading another’s privacy;

Knowingly blaming other individuals for a mistake they did not make;

Purposely invading another’s personal space;

Gossiping about another individual; and

Any type of “bullying” behavior.

Professional Equities, Inc. expects that everyone will act responsibly to establish a pleasant and friendly

work environment. However, if an employee feels he/she has been subjected to any form of disrespectful

behavior, the employee should report that conduct to his/her immediate supervisor, another member of

management, or Human Resources within three calendar days of the offense. Employees are not required

to approach the person who was disrespectful to them and may bypass any offending member of

management. All employees should notify a member of management regarding any disrespectful

behavior that they witness or are told another person received.

Professional Equities, Inc. will conduct its investigation in as confidential a manner as possible.

Interviews, allegations, statements, and identities will be kept confidential to the extent possible.

However, Professional Equities, Inc. will not allow the goal of confidentiality to be a deterrent to an

35

effective investigation. A timely resolution of each complaint will be reached and communicated to the

employee. Appropriate corrective action, up to and including termination, will be taken promptly against

any employee engaging in disrespectful behavior. The corrective action issued will be proportional to the

severity of the conduct. The alleged perpetrator’s employment history and any similar complaints of prior

disrespectful behavior will be taken into consideration.

Professional Equities, Inc. reserves the right to determine whether any type of behavior is disrespectful

and injurious to the morale of the organization.

36

Section: Employment

Policy: Authorization to Hire

Policy No.: 200


Revised:

AUTHORIZATION TO HIRE

No vacant position or new position shall be filled without the approval of the General Manager. The

General Manager shall set the salary of all new hires in consultation with the President as required.

Once an offer of employment has been made to a candidate, the hiring manager should arrange for a pre-

employment drug screen for the new employee. No employee may begin work before the results of the

drug screen are obtained.

New employees should begin their first day of employment on a Monday. They should report to Human

Resources to complete paperwork and go through orientation. New employees must present appropriate

documentation to prove their identity and ability to work in this country in order to start work.

A Personnel Action Form must be completed by the hiring manager and signed by the General Manager

before making any salary offer or salary adjustment to any employee’s or potential employee’s pay. This

will eliminate any miscommunications regarding salary or other conditions of employment. The hiring

manager should request that an offer letter be sent to any new employee verifying all the terms of

employment. All offer letters must be sent by Human Resources or the General Manager.

37

Section: Employment

Policy: Pre-Employment Drug Screens

Policy No.: 201


Revised:

PRE-EMPLOYMENT DRUG SCREENS

After the decision has been made to hire an applicant, an offer of employment will be extended contingent

upon the candidate successfully passing a pre-employment drug screen. Human Resources will be

responsible for determining the facility to be used for the pre-employment drug screen.

The candidate will be given directions to the collection site. He/she must report to the collection site with

a valid picture ID within two business days of being given directions. If the collection site staff discovers

that the candidate has not followed the collection procedures or has altered the specimen in any way, the

candidate will no longer be eligible for employment.

The candidate should understand that passing the pre-employment drug screen is a part of the

employment process. In the event that the candidate does not successfully pass the pre-employment drug

screen, the offer of employment will be revoked. If the candidate should have any questions concerning a

drug screen, all inquiries should be forwarded to the Human Resources Department.

All information regarding drug screen results will be kept strictly confidential. This information will be

kept separately in the employee’s confidential medical file in the Human Resources Department. Under

no circumstances will the results of any candidate’s drug screen be discussed with the hiring manager or

anyone else except for those individuals in the Human Resources Department authorized to deal with this

confidential information.

38

Section: Employment

Policy: Background Checks

Policy No.: 202


Revised:

BACKGROUND CHECKS

The position an individual applies for and the information he/she gives during the interview process will

determine what contingencies may apply to an offer of employment. All employees applying for any

position with Professional Equities, Inc. will be subject to reference checks with former employers and/or

managers. Individuals' claims to have certain educational credentials, either in writing or in an interview,

are subject to verification.

Positions that have responsibility for initiating or affecting financial transactions will require a credit

check of any individual offered such a position. These responsibilities could include, among other things,

collecting or handling cash or checks, writing checks or approving them, access to a direct money stream

or as a fiduciary to the organization.

Any potential employee who will be driving a company vehicle or driving a personal vehicle on company

business more than 5,000 miles each year will be subject to an inspection of his/her Motor Vehicle

Record annually.

For positions that require employees to enter the homes of customers, the employee will be subject to a

criminal background check. Only Human Resources or the General Manager are authorized to initiate or

receive criminal background information on employees.

Information gained from any of the above background checks will be held in confidence and shared with

management individuals only on a need-to-know basis.

39

Section: Employment

Policy: Employment Contracts

Policy No.: 203


Revised:

EMPLOYMENT CONTRACTS

Employment at Professional Equities, Inc. is on an at-will basis. This means that employees are free to

resign their employment at any time for any reason, and the organization retains that same right. In those

rare cases in which an individual is offered an employment contract, the contract must be signed by the

Chief Executive Officer or President in order to bind the organization. No statements to the contrary,

written or oral made either before or during an employee’s tenure with Professional Equities, Inc. can

change this. No individual supervisor or manager can make a contrary agreement except for the

organization’s CEO or President, in which case such an agreement must be set forth in a written

employment contract.

40

Section: Employment

Policy: Employment Eligibility Documents

Policy No.: 204


Revised:

EMPLOYMENT ELIGIBILITY DOCUMENTS

Federal regulations require Professional Equities, Inc. to comply with the Immigration Reform and

Control Act of 1986. All new employees must complete an I-9 Form and provide proof of their identity

and their ability to work in this country. The Human Resources Department is responsible for obtaining

the I-9 Form and verifying the eligibility to work in the United States. Employees will be expected to

complete the I-9 Form during orientation on their first day of work. Human Resources will properly

complete the Employer Section of the I-9 Form. If a new employee is unable to provide the necessary

documentation within three working days from the date of hire, he/she must provide proof that he/she has

applied for the required documents. If this is not provided, the employee will be terminated.

If a manager is notified by any governmental agency that it is going to conduct an inspection of the I-9

documents, the manager should contact Human Resources immediately.

41

Section: Employment

Policy: New Employee Orientation

Policy No.: 205


Revised:

NEW EMPLOYEE ORIENTATION

In an effort to ensure a smooth transition to Professional Equities, Inc., all newly hired employees need to

participate in an Orientation. Orientation is the joint responsibility of the new employee’s supervisor and

the Human Resources Department. Human Resources will be responsible for providing new employees

with:

A history of the organization;

An explanation of the operations of the organization; and

An overview of the organization’s policies, procedures, and benefits.

All new employees must attend an Orientation session. During the Orientation session, the employee will

receive an employee handbook and will be given an opportunity to ask questions about any information

contained in the employee handbook.

The new employee’s supervisor is responsible for ensuring that each employee attends an Orientation

session. In addition, supervisors are responsible for all job training as well as introducing the new

employee to his/her coworkers. Supervisors should ensure that they talk often with new employees

during the first few weeks of their employment.

42

Section: Employment

Policy: Hours of Work

Policy No.: 206


Revised: January 3, 2013

HOURS OF WORK

The standard workweek is 40 hours. The standard workday is eight hours for nonexempt employees.

Workday lengths for exempt employees are determined primarily by their current workloads. General

office hours at the corporate office are week days from 9:00 a.m. to 5:00 p.m.

Apartment Business Center office hours are Monday-Saturday, from 8:30 a.m. to 5:00 p.m. Maintenance

Department hours are Monday-Friday from 8:30 a.m. to 5:00 p.m. Grounds Department hours are

Monday-Friday from 8:00 a.m. to 4:30 p.m.

As starting and ending times vary within departments and office locations, the manager of each property

will determine the schedule for his/her property with required approval from the General Manager. The

workweek commences on Sunday morning at 12:01 a.m. and ends the following Saturday evening at

midnight.

An unpaid meal period is provided to any employee who works a minimum of six hours per day. The

normal meal period should occur between 11:30 a.m. and 1:30 p.m. during each workday with no more

than two office team members taking their meal period at the same time. However, certain departments

may require alternate meal periods. The length of the meal period shall be thirty (30) minutes.

Nonexempt employees must record their meal periods on their time sheet. All employees are required to

leave their workstations during all breaks in order to receive the full benefit of those breaks and meal

periods.

Nonexempt employees receive two 15-minute paid break periods for each full workday, one

approximately a quarter of the way into the workday and one approximately three quarters into the

workday. Employees are not to leave the premises during this paid break period without approval of

his/her supervisor. Professional Equities, Inc. reserves the right to modify an employee’s starting and

quitting time as well as the number of hours worked to accommodate business needs.

43

Section: Employment

Policy: Attendance and Punctuality

Policy No.: 207


Revised:

ATTENDANCE AND PUNCTUALITY

We recognize the need for employees to be absent from work due to illness or the need to take care of

personal business during the normal workday. We instituted paid time off such as vacation and sick leave

to provide for these needs as they arise. Employees also may qualify for a leave of absence for their own

major illness, the major illness of a family member, the birth or adoption of a child, workers'

compensation injury, or military and/or National Guard duty. Having provided for these situations, it is

important to remember that excessive absenteeism, tardiness, and/or leaving early causes the burden of

filling in for the absent employee to fall on other employees within the organization. It is a requirement

of each job that an employee report to work punctually and work all scheduled work hours as well as any

required overtime.

Employees who are not on an approved leave of absence and are absent from work without sufficient and

approved paid time off such as vacation or sick leave to cover that absence will be addressed through the

normal Corrective Action Process.

The following corrective action steps should be taken each time this occurs:

First Incident Record of Conversation

Second Incident First Written Warning

Third Incident Final Written Warning

Fourth Incident Termination

Two consecutive days of absence for the same reason are deemed to be one incident. If the employee is

absent for more than two consecutive days, he/she must bring a doctor’s note in order for more than two

consecutive days of absence to be counted as one incident.

If at any time an employee corrects his/her excessive absence problem and has no unexcused absences

during a six-month period, corrective action, if it becomes necessary again, should begin with a Record of

Conversation.

If an employee who has been with the company less than 90 days has an unexcused absence, he/she will

be issued a Final Written Warning for that absence. If an unexcused absence occurs again within his/her

first 90 days of employment, the employee will be terminated. If the new employee has no further

incidences during his/her first 90 days of employment, the Final Written Warning will revert to a Record

of Conversation.

Periodically, special circumstances will warrant an employee being excused from work without sufficient

paid time off to cover the absence. To ensure fairness throughout the Company, these types of requests

require the approval of the Vice President of Human Resources. Occasionally, an employee will exhibit a

pattern of absenteeism that must be corrected despite having sufficient paid time off to cover those

absences (i.e., consistently missing a specific day of the week; the day before or after a holiday; the day

44

before or after a scheduled vacation). Such cases should be reviewed with the Vice President of Human

Resources before issuing any corrective action.

An employee who is going to be absent, tardy, or leave early from work is responsible for notifying

his/her supervisor as soon as possible, but before his/her schedule start time, regardless of whether the

employee has sufficient paid time off to cover the absence. An employee who is absent and fails to notify

his/her supervisor will be subject to corrective action for failure to notify. An employee who has been

absent three consecutive days without calling to speak with his/her supervisor will be considered to have

voluntarily resigned.

Occasionally, nonexempt employees may be permitted to make up missed time with the prior approval of

their supervisor. The supervisor will determine the exact amount of time the employee will be allowed to

make up in a workweek. Each supervisor must be consistent in allowing employees to make up time

within the department. No employee will be permitted to work more than 40 hours during the workweek

for the purpose of making up time.

45

Section: Employment

Policy: Introductory Period

Policy No.: 208


Revised:

INTRODUCTORY PERIOD

The introductory period is intended to give new employees the opportunity to demonstrate their ability to

achieve a satisfactory level of performance and to determine whether the new position meets their

expectations. Professional Equities, Inc. uses this period to evaluate employee capabilities, work habits,

and overall performance. Either the employee or Professional Equities, Inc. may end the employment

relationship at will at any time during or after the introductory period with or without cause or advance

notice.

All new employees work on an introductory basis for the first 90 days after their date of hire. If

Professional Equities, Inc. determines that the designated introductory period does not allow sufficient

time to thoroughly evaluate the employee’s performance, the introductory period may be extended for a

specified period.

During the introductory period, new employees are eligible for those benefits that are required by law,

such as workers’ compensation insurance and social security. Full-time employees are eligible for other

benefits, such as health and life after ninety (90) days from the date of hire. Employees should read the

information for each specific benefit program for the details on eligibility requirements.

46

Section: Employment

Policy: Employment Records

Policy No.: 209


Revised:

EMPLOYMENT RECORDS

Professional Equities, Inc. is required to keep accurate, up-to-date employment records on all employees

to ensure compliance with state and federal regulations, to keep benefits information up to date, and to

make certain that important mailings reach all employees. All information contained in personnel files is

the property of Professional Equities, Inc. and is considered confidential.

Employees must inform Professional Equities, Inc. of any necessary updates to their personnel file such

as a change of address, changed telephone numbers, emergency contact, marital status, number of

dependents, or military status. Employees also should inform their supervisor and Human Resources of

any outside training, professional certifications, education, or any other change in status. In addition to a

general personnel file, Professional Equities, Inc. maintains a separate medical file on each employee.

Access to an employee’s medical file is extremely limited and based on a need-to-know only basis.

Professional Equities, Inc. will only verify dates of employment and job titles to outside agencies

inquiring by telephone. No other information will be given out about an employee without written

authorization from the employee except what is required to comply with the law.

All current employees will be permitted to review their personnel files at reasonable times with

reasonable notice. Former employees will not normally be permitted to review their personnel files after

leaving the organization.

47

Section: Employment

Policy: Personal Appearance

Policy No.: 210


Revised:

PERSONAL APPEARANCE

While it is the intent of Professional Equities, Inc. that all employees dress for their own comfort during

work hours, the professional image of our organization is maintained, in part, by the image that our

employees present to customers, clients, vendors, and other visitors.

Employees working in office areas should dress conservatively and professionally. Regular business

dress is required. Suits, sport coats, dress shirts, ties, and slacks are the preferred dress for men. Suits,

dresses, skirts and blouses, and pantsuits are the preferred dress for women. Skirts and dresses should not

be any shorter than three inches above the knee. Dress slacks also are acceptable. Socks or hosiery

should be worn at all times. Blue jeans, T-shirts, sweat suits, and leggings are not appropriate office

dress.

Environmental and maintenance staff employees are required to wear uniforms provided by the company.

Maintenance staff must wear shoes that cover their entire foot, have a hard toe and offer adequate

protection to the foot, ankle and heel. Protective clothing may also be required, if so, it is the employee’s

responsibility to wear appropriate safety attire.

Employees working in maintenance and grounds areas may wear company issued T-shirts with their

company issued pants and hat or their full company issued uniform. Shorts may be worn in lieu of

company issued pants as long as they are khaki style and color and no more than three inches above the

knee.

For those employees who do not have direct contact with the customers, clients, vendors and the public

dress should still be neat and clean and pose no safety hazard to themselves or others.

On approved business casual days, employees may dress in business casual clothing, including khaki

style pants/shorts (no cargo style) and polo style shirts are the preferred dress for men and women.

Long hair must be tied back to ensure the employee’s personal safety. Loose clothing or dangling jewelry

that poses a safety hazard to employees also is prohibited.

Under no circumstances may employees wear halter tops, strapless tops, spaghetti straps, tank tops,

cropped tops, clothing with offensive wording, clothing that shows undergarments (sheer), torn clothing,

clothing with holes in it, or tight-fitting, revealing, or oversized clothing. All clothing must be clean,

neat, and fit properly. Safe, neat, and clean shoes should be worn at all times.

For all employees, professional appearance also means that the organization expects you to maintain good

hygiene and grooming while working. Facial hair is permitted as long as it is neat and well trimmed. For

women, earrings are acceptable; however, no more than two earrings may be worn on each ear while

working. For men, no more than one earring is allowed. Rings through the nose, eyebrow, tongue, or

body parts other than the ear lobe that are visible to the public may not be worn while working. All

tattoos must be covered at all times. Employees are expected to be conservative in the wearing of

makeup, scented products, and hairstyles.

48

If employees require a reasonable accommodation regarding their dress for bona fide health and/or

religious reasons, they should contact their supervisor or Human Resources to discuss an exception to the

personal appearance guidelines. Unless it would constitute an undue hardship or safety hazard,

Professional Equities, Inc. will accommodate such requests.

All employees should practice commonsense rules of neatness, good taste, and comfort. Provocative

clothing is prohibited. Professional Equities, Inc. reserves the right to determine appropriate dress at all

times and in all circumstances and send employees home to change clothes should it be determined their

dress is not appropriate. Employees will not be compensated for this time away from work.

49

Section: Employment

Policy: Job Descriptions

Policy No.: 211


Revised:

JOB DESCRIPTIONS

A job description is a formal document describing the nature, scope, physical requirements, and

responsibilities of a specific job within the organization. Job descriptions are used for purposes of

training and development, annual performance appraisals, promotions, recruiting, and hiring. Job

descriptions are prepared by Human Resources with input from the General Manager.

Human Resources is responsible for:

Administering the overall job description program;

Providing the necessary training, instructional materials, and assistance to employees,

supervisors, and property managers;

Monitoring job descriptions for proper format;

Maintaining a central file of all current job descriptions; and

Ensuring that all positions have a job description.

The General Manager is responsible for reviewing and approving job descriptions.

The organization’s job evaluation program provides a systematic and equitable method of evaluating all

jobs within Professional Equities, Inc. All jobs within the organization must be evaluated and assigned a

job grade and classification. All new positions must be evaluated and approved before the job can be

posted. When the duties of a job change significantly, it may be necessary to reevaluate the job's

classification.

50

Section: Employment

Policy: Performance Reviews

Policy No.: 212



PERFORMANCE REVIEWS

In order to ensure that all employees receive regular feedback on their performance, supervisors should

evaluate the job performance of all employees working for them on a regular basis. Performance

appraisals establish a performance history with the organization and are used in performance, promotion,

transfer, and merit increase decisions. All original Performance Evaluation Forms are maintained in the

employee’s personnel file located in the Human Resources Department at the corporate office.

Supervisors should conduct regular, timely performance evaluations. Nonexempt employees should be

reviewed annually. Exempt employees and nonexempt employees working in an office environment

should be reviewed at least annually in conjunction with the December review period. These reviews

should take place regardless of whether the employee is eligible for an increase in pay. A performance

evaluation is not necessarily linked with a salary increase. Supervisors may review performance more

often than is required by this policy.

Supervisors should use a coaching approach to help employees grow in their position. Part of this process

involves regular reviews to evaluate performance. Some factors to consider are dependability, quality and

quantity of work, interpersonal skills, and judgment. The purpose of this evaluation is to guide

employees’ progress in their current position, to discuss ways in which their performance can be

improved, and, when appropriate, explore their potential for advancement. These formal performance

reviews are in addition to the informal meetings supervisors should have with employees throughout the

review period.

Goals and objectives should be reviewed with employees at the beginning of the review period to ensure

that they understand and agree with all performance criteria. All new employees should be given goals

and objectives within 90 days of beginning employment. The employee’s performance should be

reviewed periodically with feedback and direction given regarding all performance criteria.

All Performance Evaluation Forms should be reviewed with the General Manager before the performance

review conference takes place with the employee. The General Manager should sign the Performance

Evaluation Form prior to it being reviewed with the employee to signify the manager’s agreement with

the contents of the Performance Evaluation Form. When the Performance Evaluation Form has been

reviewed with the employee, the employee and the employee’s supervisor need to sign it. An employee’s

signature on his/her performance evaluation only acknowledges that it has been reviewed with the

employee. Employees should be encouraged to attach any written comments they wish to their

performance reviews. The Performance Evaluation Form with any employee comments will become a

part of the employee’s personnel file. The completed form should be forwarded to the Human Resources

Department and a copy provided to the employee.

When an employee is away from work because of a leave of absence greater than 60 days and any part of

the leave includes or occurs within the 60 days immediately preceding the review date, the employee’s

review will be postponed. The performance review will take place 60 days after the employee returns to

work. Any salary increase due as a result of the review will be retroactive to the employee’s return date.

51

Section: Employment

Policy: Suggestions

Policy No.: 213


Revised:

SUGGESTIONS

Employees are encouraged to make suggestions or offer ideas that would benefit the organization.

Professional Equities, Inc. is always looking for suggestions that improve methods, procedures, and

working conditions, reduce costs or errors, and/or benefit its employees. Employees who wish to make

anonymous suggestions are encouraged to do so by placing them in the Suggestion Box located in the

business center. Employees who make suggestions that are used to substantially benefit the organization

and/or its employees may at the sole discretion of Professional Equities, Inc. be considered for an

appreciation award. In addition, any suggestions used will be prominently publicized throughout the

organization.

52

Section: Employment

Policy: Transfers / Promotions

Policy No.: 214


Revised:

TRANSFERS / PROMOTIONS

Professional Equities, Inc. is committed to the professional development of its employees. In an effort to

retain our experienced employees, transfers and promotions within the organization are encouraged. At

the organization's discretion, it may require or permit employees to make a temporary or permanent

transfer in order to accommodate business needs or the employee’s own personal needs. Employees are

required to sign the Employee Transfer Notice that clearly outlines the policy regarding mandatory

transfers. Employees requesting transfers to other locations should make those requests through their

managers. Managers should obtain approval for the transfer from the General Manager.

Employees also may request to be considered for a promotional opportunity. However, to be promoted,

there must be a position available within the organization. In addition, employees will only be eligible for

promotion if they have been in their current position for a minimum of six months, have a satisfactory

performance record, and have not been issued any corrective action in the previous six-month period. In

the event of extraordinary circumstances, any of the above criteria may be waived with the approval of

the General Manager.

Employees requesting a promotion should submit a Request for Interview Form to Human Resources.

Human Resources will review the employee's Request for Interview and his/her personnel file to ensure

that he/she meets the requirements for a promotion.

Employee transfers or promotions should not create a direct or indirect supervisor/subordinate

relationship with an immediate family member.

The employee’s rate of pay, after the transfer or promotion, will be determined according to the

compensation guidelines for the new position.

53

Section: Employment

Policy: Reductions in Force

Policy No.: 215


Revised:

REDUCTIONS IN FORCE

On occasion, business areas may be forced to reduce staff. Some business reasons for this may be

economic need, consolidation of facilities, restructuring of operations, combining of departments or

functions, and streamlining or elimination of departments, functions, or jobs. If a reduction in staff is

deemed necessary, the manager of the business area to be affected will work with the Vice President of

Human Resources to document the business reason and process for the restructuring. This may include

an analysis of business needs to determine the appropriate criteria to use, development of a

communication plan, job re-evaluations, salary administration, and/or the use of retention bonuses or

outplacement services.

In selecting the employees who will remain with the organization, only job-related criteria will be used.

The criteria used will be determined based on the reason for the reduction in force and the determination

of the business area’s needs. Job-related criteria may include the employee’s current performance (as

noted by the most current performance review), competencies, skills, responsibilities, experience,

leadership, education and training, personal commitment, and seniority.

Affected employees are encouraged to seek other positions in the organization. In some cases,

Professional Equities, Inc. may be able to transfer an employee whose position is being eliminated into

another area.

54

Section: Employment

Policy: Employment of Relatives

Policy No.: 216


Revised:

EMPLOYMENT OF RELATIVES

While the organization has no prohibition against hiring relatives of employees, close family members

such as parents, children, spouses, siblings, or in-laws will not be hired into or transferred to positions

where they directly or indirectly supervise or are supervised by another close family member. If two

employees marry and are in the same chain of command, Professional Equities, Inc. may select either

employee at its discretion and require the selected employee to transfer or leave the organization.

Professional Equities, Inc. reserves the right to determine in all cases if a close enough familial

relationship exists to prohibit a supervisory relationship. Under certain circumstances it may be necessary

for related employees to work within the same property or facility for a temporary period of time for

specific business needs.

55

Section: Employment

Policy: Employment Application

Policy No.: 217


Revised:

EMPLOYMENT APPLICATIONS

Professional Equities, Inc. does not accept applications and/or resumes except for positions that

Professional Equities, Inc. currently has open. All applications and/or resumes must designate the open

position being applied for or they will be disposed of. Professional Equities, Inc. does not retain

applications and/or resumes for any period of time. Individuals interested in applying more than once for

employment must submit an application and/or resume each time they apply.

No individual can be made an offer of employment with Professional Equities, Inc. without filling out an

Application for Employment. All sections of the Application for Employment must be filled out and

signed by the applicant.

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Section: Employment

Policy: Inclement Weather

Policy No.: 218


Revised:

INCLEMENT WEATHER

Because of the critical nature of our organization’s work, it is imperative that employees make every

effort to report to work in the event of inclement weather, including but not limited to snow, ice, freezing

rain, or flood. Employees also should make every effort to remain at work in the event inclement weather

occurs during their work schedule.

Employees will not be permitted to use accrued vacation leave to make up time lost due to inclement

weather unless the time has been previously scheduled with the manager of the property. Nonexempt

employees will be paid for only those hours worked. However, at the discretion of their supervisors,

employees may make up the time missed due to inclement weather during the same pay week in which

the time was missed.

Employees unable to make it to work due to inclement weather will not be issued corrective action for

attendance.

If the facility is closed or closes due to inclement weather, employees will have the option to use accrued

benefit time but will not be required to do so.

Office employees may wear casual attire on days that are designated as snow schedule days.

57

Section: Employment

Policy: Other Employment

Policy No.: 219


Revised:

OTHER EMPLOYMENT

While Professional Equities, Inc. does not prohibit employees from having a second job, it must not affect

the employee’s work hours, interfere or conflict with the employee’s regular duties, raise any ethics

concerns, or necessitate long hours that may have an impact on the employee’s working effectiveness.

Employees that are contemplating secondary employment are required to submit a written request for

approval to their supervisor. The written request should identify the secondary employer, the nature of

the duties to be performed, and the anticipated hours the employee will be working. This request will be

promptly answered in writing and a copy placed in the employee’s personnel file.

Because of concerns about the health and safety of every employee at Professional Equities, Inc.,

employees will be denied permission to have additional employment if the second job requires them to

work more than eight hours per workday. Working a second job is prohibited while on any kind of leave

of absence from Professional Equities, Inc. and could result in revocation of the leave of absence and/or

termination of employment.

58

Section: Employment

Policy: Use of Company Premises

Policy No.: 220


Revised:

USE OF COMPANY PREMISES

Meetings held on Professional Equities, Inc. premises must be for the purpose of conducting business.

Meetings for other purposes are strictly forbidden.

59

Section: Employment

Policy: Use of Company Property and Materials

Policy No.: 221


Revised:

USE OF COMPANY PROPERTY AND MATERIALS

The use of business stationery and/or the organization’s postage meter for personal correspondence is

strictly forbidden. The personal use of its telephones for long distance use, facsimile or copying machines

also is forbidden without first receiving management approval and reimbursing Professional Equities, Inc.

at the currently prevailing rates.

While it has always been Professional Equities, Inc. policy to generously donate product and materials to

various charitable causes, no product or materials including that put in any trash container is to be

removed from the building without first obtaining written permission from a manager. Anyone who

removes product or materials without proper authority will be terminated.

60

Section: Employment

Policy: E-Mail and Voice Mail

Policy No.: 222


Revised:

E-MAIL AND VOICE MAIL

Telephones, computers, and all other electronic forms of communications are efficient and valuable

business tools. They also are the property of the organization. Employees do not have a personal privacy

right to any matters received, created in, sent over, or stored in Professional Equities, Inc. telephone

systems, communication systems, and/or computer systems. All company communication systems and

both incoming and outgoing information is subject to monitoring. In short, none of these systems is

considered to be confidential, nor should they be used to meet an employee's own personal needs. If an

employee receives a message that is not addressed to him/her, he/she is not authorized to read or use

information contained in that message.

Employees are expected to communicate with courtesy and restraint to both internal and external

recipients. Typographical or grammatical errors and misspellings denote lax work habits and are a

reflection on the competency and professionalism of the writer. It is recommended that using all capital

letters, shorthand idioms, unfamiliar acronyms, and/or slang should be avoided when using e-mail. The

rule to observe with all communications is that employees should not say or write anything that they

would not want someone other than the intended receiver to hear or read. Remember that even when

communications have been deleted from a location, it is still possible to retrieve and read those messages.

Use of electronic communication and/or voice mail can increase productivity because it is efficient and

effective in the speedy delivery of information. Employees should strive to keep all messages small and

concise. All large attachments should be compressed (zipped) prior to sending or should not be sent until

after business hours to prevent tying up the server during critical business hours.

Employees are to exercise professionalism in all business communications including those in electronic

and/or voice format. E-mail and/or voice mail is not to be used in business situations that require a more

personal form of contact to ensure the proper delivery and reception of the information or to maintain the

appropriate interpersonal working relationship. Electronic communication is the least effective form of

communication for conflict resolution.

Professional Equities, Inc. reserves the right to monitor, access, and read any and all information

contained in its telephone systems, communication systems, and/or computer systems. Employees will be

in violation of the organization’s discrimination and/or harassment policy if employees send, receive, or

access discriminatory, harassing, or otherwise inappropriate messages via any of these systems.

Brief and occasional personal use of e-mail is acceptable as long as it is not excessive or inappropriate,

does not occur during work time, does not violate any of the prohibitions listed in the Use of Computers

and Internet Policy, and does not result in expenses to Professional Equities, Inc. Management reserves

the exclusive right to determine whether any use is inappropriate, excessive, and/or violates this policy.

61

Section: Employment

Policy: Use of Personal Electronic Devices

Policy No.: 223


Revised:

USE OF PERSONAL ELECTRONIC DEVICES

Office telephones are a vital part of our business operation. Because of the large volume of business

transacted by telephone, personal use of the telephone should be limited and personal calls should be

brief. Personal long-distance calls on company office telephones are prohibited.

Cell phones are furnished to certain employees in connection with their duties. Employees who are

issued cell phones by Professional Equities, Inc. should make all long-distance telephone calls while

traveling from their cell phone. Employees need to limit personal use of cell phones in the same way they

need to limit personal use of their office telephone. Employees that have excessive cell phone usage for

personal calls will be subject to corrective action up to and including termination.

Professional Equities, Inc. requires the safe use of its cell phones by employees while conducting

business. Employees should not use the cell phones while driving because of safety concerns, but should

instead pull to the side of the road to make or receive telephone calls. If unable to pull over or stop prior

to receiving a cell phone call, employees should utilize a hands-free device for increased safety, keep the

business conversation brief, and immediately locate a safe area to park. Professional Equities, Inc. does

not permit employees to drive while using a hand-held cell phone.

During work time, employees should limit the use of their personal cell phones. Employees should set

personal cell phones on the silent ring mode during work hours to avoid disturbing those working around

them.

62

Section: Employment

Policy: Use of Computers and the Internet

Policy No.: 224


Revised:

USE OF COMPUTERS AND THE INTERNET

All employees are responsible for maintaining systems security. Employees with access to a computer are

responsible for safeguarding their password to ensure that no transaction takes place under that password

for which they are not responsible. Under no circumstances should employees reveal their password to

another individual. Passwords and encryption keys must be made available to the Professional Equities,

Inc. IT Department upon request. If a business need should arise in which it is necessary to obtain access

to a specific computer in the absence of the assigned user, appropriate management authorization must be

obtained. Passwords should be changed and reset when the employee returns to work.

Even though employees may have their own passwords for accessing e-mail, the Internet, and computers

issued to them, company computers and the information that is received or transmitted through them is

the property of Professional Equities, Inc. The company reserves the right to monitor the use of company

equipment by employees and others and employees should have no expectation of privacy with regard to

any information contained on computers to which they have access.

Employees with access to a computer should not:

Download software without approval from the IT Department. Software that is approved for

downloading must be registered to Professional Equities, Inc.

Copy software unless authorized by the IT Manager;

Knowingly introduce a computer virus, worm, “Trojan horse,” or any other contaminating or

destructive features into the organization’s computers;

Transmit copyrighted materials without permission;

Download files from the Internet except for an express business purpose;

Transmit, forward, or download material that is offensive, abusive, pornographic, obscene, profane,

discriminatory, harassing, insulting, derogatory, inflammatory, fraudulent, or otherwise unlawful;

Use e-mail or the Internet for any purpose that is illegal, against company policy, or contrary to

Professional Equities, Inc. best interest;

Transmit or disseminate Professional Equities, Inc. confidential information, proprietary materials, or

trade secrets to any outside source without an express business purpose or authorization;

Send or forward any chain e-mail, broadcast e-mail, or spam;

Gamble and/or participate in fantasy sport leagues;

Participate in instant messaging;

Write or participate in blogs that injure, disparage, and/or defame the organization, its customers, its

competitors, and/or its employees’ reputations by name or implication;

Transmit or download information seeking employment outside of Professional Equities, Inc.;

63

Use Professional Equities, Inc. e-mail or computer system to solicit or encourage other employees to

join, support, or contribute to any outside organization other than charitable organizations sponsored

by the Company.

Use Professional Equities, Inc. e-mail or computer system to send invitations, other than invitations

of a personal nature;

Visit chat rooms, use listservs, instant messaging, and/or news groups as well as post their e-mail

addresses on the Internet when not business-related;

Receive or forward unsolicited e-mails that violate company policy;

Download radio, or music transmissions from Internet sites;

Attempt to defeat any security mechanisms to gain unauthorized access to computer files or other

information on Professional Equities, Inc. telephone systems, electronic communication systems, or

information systems;

Attempt to read, intercept, copy, or delete e-mails between other users;

Post or transmit any message anonymously or under a false name or permit any other individual to

do so;

Impersonate another person; or

Collect information about others, including e-mail addresses, without their consent.

Employees may encounter information on the Internet that relates to Professional Equities, Inc. Should

such information be encountered, employees should not respond but instead should bring the information

to the attention of management. Management will determine if a response is appropriate to the

information.

Brief and occasional personal use of the Internet is acceptable as long as it is not excessive or

inappropriate, does not occur during work time, does not violate any of the prohibitions listed above, and

does not result in expenses to Professional Equities, Inc. Management reserves the exclusive right to

determine whether any use is inappropriate, excessive, and/or violates this policy.

64

Section: Employment

Policy: Social Media

Policy No.: 225


Revised:

SOCIAL MEDIA

Professional Equities, Inc. recognizes the growing importance of online social media networks as a

communication tool. This policy addresses employees’ use of such networks including: personal

websites, web logs (blogs), wikis, social networks, online forums, virtual worlds, and any other kind of

social media. Professional Equities, Inc. respects the right of employees to use these mediums during their

personal time. Use of these mediums during company time or on company equipment, however, is

prohibited.

Professional Equities, Inc. takes no position on employees’ decision to participate in the use of social

media networks. In general, employees who participate in social media are free to publish personal

information without censorship by Professional Equities, Inc. Employees must avoid, however, posting

information that could harm Professional Equities, Inc. using the guidelines set forth below.

All employees are responsible for maintaining the company’s positive reputation and under no

circumstances should employees present the company to the public in a manner that diminishes its

standing within the community. Instead, employees are responsible for presenting the company in a

manner that safeguards the positive reputation of themselves, as well as the company’s employees,

managers and owners.

If an employee chooses to identify him or herself as a Professional Equities, Inc. employee on any social

media network, he or she must adhere to the following:

Employees are required to state in clear terms that the views expressed on any social media

network are the employee’s alone and that they do not necessarily reflect the views of

Professional Equities, Inc.

Employees are prohibited from disclosing information on any social media network that is

confidential or proprietary to Professional Equities, Inc. or to a third party that has disclosed

information to the company. For example, information about or identifying the company’s

customers, co-workers, incidents that occur at Professional Equities, Inc., or information that may

be valuable to a competitor including specific information.

Employees are prohibited from displaying the company logo on any social media network

without permission from Professional Equities, Inc. Also, they should not post images of co-

workers without the co-workers’ consent. Finally, employees are prohibited from posting any

nonpublic images of company premises and property.

Employees are prohibited from making statements about Professional Equities, Inc., their

coworkers, our customers, competitors, agents, or partners that could be considered as harassing,

threatening, libelous, or defamatory in any way.

Employees are prohibited from acting as a spokesperson for Professional Equities, Inc. or posting

comments as a representative of the company.

Employees are prohibited from sharing any communication that engages in personal or sexual

harassment, unfounded accusations, or remarks that would contribute to a hostile work

65

environment (racial, sexual, religious, etc.), as well as any behavior not in agreement with

Professional Equities, Inc. Standards of Ethical Conduct Policy or general corporate policies.

Employees [are/may be] required to disclose annually [on performance review date OR anniversary date

OR on January 1 AND/OR on a form that the company will provide] to Professional Equities, Inc.

whether or not they have a personal web site or web log.

Employees who participate in social media may still decide to include information about their work at

Professional Equities, Inc. as part of their personal profile, as it would relate to a typical social

conversation. This may include:

Work information included in a personal profile, to include company name, job title, and job

duties.

Status updates regarding an employee’s own job promotion.

Personal participation in Professional Equities, Inc. sponsored events, including volunteer

activities.

An employee who is responsible for a social media posting that fails to comply with the guidelines set

forth in this policy or that otherwise causes harm to Professional Equities, Inc. may be subject to

discipline, up to and including termination. Employees will be held responsible for the disclosure,

whether purposeful or inadvertent, of confidential or proprietary company information, information that

violates the privacy rights or other rights of a third party, or the content of anything posted on any social

media. Further, employees may be liable for monetary damages for such disclosure.

Anything posted on an employee’s Web site or Web log or other Internet content for which the employee

is responsible will be subject to all Professional Equities, Inc. policies, rules, regulations, and guidelines.

Professional Equities, Inc. is free to view and monitor an employee’s website or web log at any time

without consent or previous approval.

Finally, employees should let the General Manager know if they encounter incorrect information about

Professional Equities, Inc. that might randomly appear online. Employees themselves should not attempt

to correct any such information that appears online.

66

Section: Employment

Policy: Use of Company Vehicles

Policy No.: 226


Revised:

USE OF COMPANY VEHICLES

Certain job positions allow for the personal assignment of a company vehicle. All employees who are

assigned or approved to drive a company vehicle must present a valid driver’s license to the General

Manager of the Company and submit to a Motor Vehicle Report. Suspension of the license for any

reason must be reported immediately to your supervisor. As a general rule, personally assigned vehicles

are to be driven home by employees for the sole purpose of garaging and safekeeping the vehicles.

Personal use of the vehicles driven home by employees is prohibited. Pursuant to rules promulgated by

the Internal Revenue Service, employees will be assessed a daily commuting usage charge for the value

of not having to drive their personal vehicle to/from work.

Some vehicles are assigned on a daily basis for company business. Employees who require the use of

such a vehicle must sign for it and pick up the key at the Property Manager’s office.

Fluid levels should be checked each time that the vehicle is fueled. At all times are seatbelts to be worn

while the company vehicle is in operation. At no time should cell phone should be used unless using a

hands free device. If a hands free device is not available the employee should stop the vehicle to use the

phone. When returning company vehicles, the vehicle should be parked in the designated area and the key

promptly returned to the Property Manager. In addition to turning in the key, the employee should also

sign in the vehicle. Under no circumstances will a company vehicle be kept out overnight without prior

authorization from the General Manager.

Payment of speeding and/or parking tickets is the sole responsibility of the employee driving the vehicle.

Failure to pay such tickets prior to notification to Professional Equities, Inc. by law enforcement agencies

may result in corrective action up to and including termination for the employee driver.

67

Section: Employment

Policy: Travel and Entertainment

Policy No.: 227


Revised:

TRAVEL AND ENTERTAINMENT

Professional Equities, Inc. believes that it is important that all employees have some assurance that any

monies they expend traveling on behalf of the organization will be reimbursed to them. In addition,

Professional Equities, Inc. wishes to ensure that equitable standards and effective procedures are in place

for controlling travel costs.

Travel Authorization: All employees must receive written permission to travel before any business travel

is undertaken. Employees should submit their travel request at least 10 days prior to departure and obtain

written authorization from the General Manager or President for the trip. The written authorization

certifies that the travel has been approved and that expenses will be paid by Professional Equities, Inc.

with the proper documentation. A written request to travel must contain the following information:

Employee's name;

Destination and purpose of the trip;

The dates of departure and return;

The type of transportation requested;

Manager’s written approval; and

Amount of travel advance requested, if any.

It is the responsibility of the employee traveling to acquire all necessary signature approvals.

Travel Advance: Employees who are required to travel overnight (except for those employees who have

a company credit card) may obtain a travel advance. An employee desiring a travel advance must request

it in writing at least 10 workdays prior to departure to allow adequate time for processing the payment.

Amounts requested will be reviewed for reasonableness, but no changes will be made without discussing

the change with the employee.

A travel advance is considered to be a draw on an employee's future salary. Normally, travel expenses

will be reimbursed using the advance as part of the reimbursement paid to the employee. However, if an

expense report is not received within ten workdays after an employee returns from a business trip, the

travel advance will be deducted from the employee's forthcoming payroll check(s).

Travel Arrangements: Whenever possible, travel should be made via common carrier or a company

vehicle. All air travel will be provided or reimbursed at the coach fare cost. Because airlines sometimes

offer lower fares for travel that includes a Saturday night stay-over, employees can be reimbursed for the

costs associated with up to two additional travel days if there is a net savings with such a fare. Employees

must obtain the written approval from their manager prior to incurring these additional travel days and

should document the net savings on their expense report.

68

All travel arrangements, including airline tickets, hotel reservations, and rental cars, are the responsibility

of the employee. Employees may utilize the benefits of any frequent flier bonus programs that may

accrue from business-related travel for seating upgrades or for personal travel. Employees should be

aware that the IRS has not yet addressed the issues concerning the tax treatment of frequent flyer

programs. Professional Equities, Inc. intends to comply fully with regulations as they are issued, so the

frequent flyer bonus policy may change in the future.

Documentation Requirements: Documentary evidence, such as receipts or paid invoices, is required for

expenses that exceed $10.00. Expenses of $10.00 or less do not require receipts, but a written explanation

is required prior to reimbursement for expenses that appear to exceed ordinary levels.

Lodging: Reasonable costs of lodging will be reimbursed with a valid receipt. Hotel movies, health

clubs, spas, salons, shoeshine’s, or haircut expenses are not reimbursable. Apartment rental allowances

may be established for assignments of exceptional length. Lodging with friends is not directly

reimbursable, but reasonable restaurant expenses for dinner with friends will be reimbursed as an

expression of gratitude for lodging. The expense report should describe this cost as "in lieu of lodging."

Meals: Reasonable expenses for breakfast, lunch, and dinner will be reimbursed. Tips of 15% to 18%

should be included in the meal charges on the expense report. Meals prior to departure and after return

from a trip will not be reimbursed. Also, drinks and snacks between meals will not be reimbursed. As a

rule of thumb, the company considers the following meal per diem appropriate: $15.00 for Breakfast;

$15.00 for Lunch and $25.00 for Dinner. The company does not hold strictly to the listed per diem as

travel costs vary depending on locations. No more than two alcoholic drinks may be reimbursed for

dinner. No alcoholic drinks will be reimbursed for breakfast or lunch.

Entertainment: Entertainment, amusement, or recreation expenses for employees will be reimbursed only

if the activity is directly related to the conduct of the organization’s business. The business purpose of the

entertainment, the names of the persons involved, and the business relationship must be disclosed on the

expense report.

Taxis and Car Services: Taxi fares and car service costs for business purposes will be reimbursed to the

extent that the fares do not exceed the cost of renting a car to cover the same distance.

Telephone Charges: Telephone charges will be reimbursed if they are incurred in connection with the

organization’s business. Employees, who are issued cell phones, should use their cell phones to make any

telephone calls while traveling. Reasonable telephone charges for personal calls while traveling overnight

also will be reimbursed.

Laundry: Reasonable laundry and dry cleaning charges will be reimbursed if the employee is traveling

overnight for at least three nights.

Mileage: Personal car mileage will be reimbursed at the rate allowed by IRS regulations for business

purposes. The amount reimbursed will not exceed the equivalent common carrier fare or the cost of

renting a car. If employees choose to use their personal vehicle, they must possess a valid driver's license

and carry a minimum of $50,000/$100,000/$50,000 (per person/accident/property damage) or $100,000

combined single-limit liability insurance coverage. Employees receiving a car allowance will not receive

mileage reimbursement except in unusual circumstances. Any fines incurred as a result of driving or

parking violations while on company business will not be reimbursed.

Automobile Tolls and Parking: Automobile tolls and parking expenses incurred for business purposes

will be reimbursed. Long-term parking at all airports should be used due to the expense of short-term

parking.

69

Travel with Spouse: Professional Equities, Inc. will not reimburse an employee for the travel expenses of

the employee's spouse unless the presence of the spouse on the trip is clearly necessary to the conduct of

the organization's business. Employees who intend to claim reimbursement for a spouse's travel expenses

must clearly indicate that on their travel request and have it approved by their manager.

70

Section: Employment

Policy: Telephone Monitoring

Policy No.: 228


Revised:

TELEPHONE MONITORING

Employees need to be customer service oriented, treating customers in a courteous and respectful manner

at all times. A positive telephone contact with a customer can enhance good will, while a negative

experience can destroy a valuable relationship.

To measure and evaluate customer service, Professional Equities, Inc. may monitor employees’ telephone

conversations made in the normal course of business. The monitoring of telephone conversations will be

random and periodic. Advance notice will not be given prior to monitoring telephone conversations.

Monitoring will be limited to business-related objectives. Monitoring will be discontinued if it becomes

apparent that the employee is engaged in discussing personal matters.

71

Section: Employment

Policy: Personal Property

Policy No.: 229


Revised:

PERSONAL PROPERTY

Personal belongings brought onto Professional Equities, Inc. premises are the employees’ responsibility.

While the organization does all it can to protect employee’s property, it cannot be held responsible for the

loss or theft of personal belongings. If employees find property missing or damaged, they should report it

to their supervisor immediately.

72

Section: Employment

Policy: Personal Conduct

Policy No.: 230



PERSONAL CONDUCT

Professional Equities, Inc. expects all employees to observe certain standards of behavior while at work

and at company-sponsored events. Employees shall be responsible for ensuring that the conduct of any of

their guests at a company-sponsored function is respectful and not offensive to anyone in attendance.

These standards are not intended to restrict employees, but to ensure a consistent application of the

policies and procedures for all employees.

These standards include but are not limited to:

Completing all documents and records accurately;

Refraining from altering and/or destroying any documents, payments or records without proper

authorization;

Maintaining satisfactory attendance and punctuality;

Performing duties and operating equipment with care to protect the safety of employees,

coworkers, and the public;

Carrying out assigned duties and following reasonable instructions or requests from supervisors

and/or management in an efficient and effective manner;

Not posting any literature, handbills, petitions, posters, or other materials on the premises without

the prior approval of Human Resources;

Refraining from soliciting funds or selling any item, commodity, or service;

Not possessing weapons on the premises unless authorized;

Refraining from any manner or form of discrimination and/or harassment, regardless of whether it

is sexual, racial, religious, or related to another’s gender, age, sexual orientation or disability;

Using company property or that of another employee in an inappropriate manner or failing to

obtain written authorization to remove company property from the premises;

Refraining from misuse, theft, or destruction of company time and/or property or another

employee’s property or customer’s property or payments;

Remaining in the employee’s work area, on the job, and awake during working hours;

Reporting to work fit for duty and not under the influence of alcohol and/or drugs and refraining

from using, selling, or possessing illegal drugs on company premises or while on company

business. While working, employees should only possess and take drugs that are medically

authorized, approved, and determined by the employee, the employee’s physician, and the

organization not to impair job performance or cause a safety hazard;

73

Passing a mandatory drug and/or alcohol test or not refusing to take a drug and/or alcohol test;

Refraining from fighting, threatening, intimidating, or coercing fellow employees and/or

customers or the general public;

Refraining from the use of foul or offensive language;

Disclosing or using confidential or proprietary information only with proper authorization;

Using company telephones for company purposes only and not for personal business other than

emergency local calls;

For service technicians, failing to obtain or maintain an operable vehicle, current license, auto

insurance, certification, or other qualification required by law or Professional Equities, Inc. as a

condition of continued employment;

Engaging in conduct unbecoming an employee of Professional Equities, Inc. and/or conduct that

appears to reflect badly upon the organization;

Conduct themselves in a professional and pleasant manner at all times with customers and

potential customers. Employees must treat all customers with dignity and respect, be consistent

on a daily basis.

Refraining from dating or socializing with residents on a romantic level;

Refraining from unauthorized entry into an apartment, office, shop or storage unit;

Refraining from knowingly accepting cash from a resident or prospective resident as payment

towards rent, deposit or any other charges. This is grounds for immediate termination;

Refraining from unauthorized use or possession of keys;

Failure to respond to a maintenance emergency or failure to follow procedures related to the

automated emergency system;

Service technicians maintaining a properly licensed and insured vehicle for business use;

Transferring to another property or facility when required by the company;

Refraining from misappropriation of company issued credit cards, gas cards, petty cash or

company funds;

Refraining from horseplay, pranks or practical jokes, or leaving the job site without authorization;

Participating in any action that would in any way interfere with or disturb the normal operation of

the organization or that would interfere with the ability of management to manage.

Failure to observe the above standards could lead to corrective action up to and including termination.

74

Section: Employment

Policy: Corrective Action

Policy No.: 231



CORRECTIVE ACTION

When it becomes necessary to address an employee’s actions in the workplace, general guidelines of

acceptable business conduct will govern. Depending upon the nature and seriousness of the employee’s

actions, corrective action may begin at any step of the corrective action process. The process should

ensure that employees are informed of exactly what behavior needs to be corrected, inform employees of

the measures they must take to correct unacceptable behavior, and give employees adequate opportunity

to correct the situation.

Corrective Action Steps

Step One: Record of Conversation

The immediate supervisor of the employee will meet with the employee and inform him/her of the

specific behavior that is unacceptable. The behavior will be clearly identified and a time by which the

situation must be rectified is set. A written record of this conversation signed by the supervisor should be

forwarded to the Human Resources Department to be placed in the employee’s personnel file.

Step Two: First Written Notice

The same procedure as the Record of Conversation will be followed, except the employee is asked to sign

the written record indicating he/she has read the document. The employee may wish to write his/her own

comments on the notice or attach comments to that document.

Step Three: Final Written Notice

The same procedure as the First Written Notice will be followed. The Final Written Notice must specify

that the consequences of failure to remedy the behavior will be termination of employment. A suspension

of pay may be directed up to three days depending on the severity of the issue.

Step Four: Termination

An employee who does not correct his/her behavior after three warnings will be terminated if the behavior

continues. If six months have elapsed since the employee received corrective action, the Corrective

Action Process begins at Step One (Record of Conversation). In cases involving more serious problems

or violations of company policy, the process may be accelerated. All documentation may be considered

to establish an overall conduct record. Any acceleration must be reviewed with the Vice President of

Human Resources and General Manager prior to it taking place. The Vice President of Human

Resources should attend all terminations with the Property Manager as a witness.

On rare occasions, an employee may be terminated for a single occurrence of behavior or violation of

policy without having been previously warned. Such action may be justified because the offense is so

severe as to make a warning unnecessary – that any employee normally would know that such behavior is

unacceptable. In these rare cases, supervisors should suspend the employee pending a complete

investigation of the situation before terminating the employee. Any terminations of this nature must be

75

reviewed with the Vice President of Human Resources and General Manager prior to the

termination taking place.

In cases where the supervisor feels an employee should be terminated immediately, the supervisor should:

Advise the employee that he/she is suspended;

Request the employee to immediately leave the premises;

Inform the Human Resources Department of the circumstances with a recommendation for

termination; and

Meet with the employee to advise him/her about employment status.

Suspension may take place at any time during the Corrective Action Process. A supervisor may, with the

approval of the Human Resources Department, place an individual on suspension without pay for no

longer than three working days. An employee may be placed on suspension when he/she commits a

serious act, but not so severe as to warrant immediate termination. Discretion should be used in applying

suspension as a management tool.

Any new employee will be in his/her introductory period for the first 90 days of his/her employment. If

corrective action needs to be taken during the introductory period, the employee will be issued a Final

Written Notice that clearly states any additional occurrence of unacceptable behavior within the 90-day

introductory period will result in termination. The new employee will be asked to sign the document

indicating that he/she has read the notice. Any written notice issued during the introductory period will

become a Record of Conference upon completion of the introductory period.

76

Section: Employment

Policy: Leaving the Organization

Policy No.: 232



LEAVING THE ORGANIZATION

When an employee wishes to resign because of illness or for personal reasons, the possibility of a leave of

absence may be explored if the employee has a good work record and has sufficient length of service.

The employee is requested to give at least two weeks’ notice before voluntarily terminating employment.

Employees are required to turn in all company property prior to receiving their last paycheck.

Employees who leave the company who resign or separate will be eligible for payment of unused, earned

vacation. Sick leave and unused holidays is not payable upon termination. Employees who separate from

the company due to misconduct shall NOT be entitled to vacation pay.

All benefits terminate on the last day worked, unless otherwise specified, such as in a lease rider.

When employees leave Professional Equities, Inc., they will be asked to participate in an exit interview.

The primary purpose of the exit interview is to ask for valuable feedback about employees’ work

experiences at Professional Equities, Inc. Participation in an exit interview is strictly voluntary.

77

Section: Employment

Policy: References

Policy No.: 233


Revised:

REFERENCES

All inquiries regarding employees who are currently employed or have been previously employed by

Professional Equities, Inc. are to be referred to Human Resources. Frequently an employer will inquire

about an employee's character or abilities. This information is considered confidential and may not be

released. Human Resources will only provide confirmation of information provided by the employee or

former employee to a third party unless special circumstances exist or the organization is compelled by

law to release additional information. That information is limited to dates of employment and job title.

The only exception to the above statement is that Human Resources may release salary information to

credit institutions when such information will assist the employee in securing credit, provided the request

for salary information is made in writing and the employee authorizes release of the information.

78

Section: Employment

Policy: Reinstatement after a Break in Service

Policy No.: 234


Revised:

REINSTATEMENT AFTER A BREAK IN SERVICE

On occasion, employees are hired who have previously been employed by Professional Equities, Inc.

Professional Equities, Inc. adjusts employees' service dates and gives them credit for previous service if

the break in service is not longer than all totaled service credit. For employees who have worked for

Professional Equities, Inc. in the past, left the organization, and returned, their total prior service (full-

time, part-time, and temporary) is used to establish their Adjusted Service Date.

Listed below are illustrations of how this policy is applied:

Illustration #1 - The employee worked for Professional Equities, Inc. as a temporary employee for six

months, worked as a part-time employee for six months, and worked as a full-time employee for four

years. The employee leaves the organization for two years. The employee’s Adjusted Service Date upon

rehire would reflect five years of service.

Illustration #2 - The employee worked for Professional Equities, Inc. as a temporary employee for six

months, worked as a part-time employee for six months, and worked full-time for four years. The

employee leaves the organization for six years. The employee would not receive an Adjusted Service

Date.

Any employees who leave Professional Equities, Inc. and return within twelve months will be restored

their original hire date. Adjusted Service Dates will be used to determine a returning employee’s

eligibility for vacation accrual levels and service awards. With regard to eligibility for all other benefits

(health benefits, life benefits, and the Profit Sharing Plan, the plan documents for each benefit will govern

whether previous service can be used to establish eligibility.

79

Section: Employment

Policy: Tools and/or Supplies

Policy No.: 235


Revised:

TOOLS AND/OR SUPPLIES

Professional Equities, Inc. believes that employees must have adequate equipment, tools, and supplies

with which to perform their jobs. The organization will supply any special tools, goggles, plain safety

glasses, and other special equipment it deems necessary for the efficiency and safety of all employees.

Employees are responsible for such equipment, tools, and supplies issued to them. If these company-

supplied materials are damaged or lost (with the exception of normal expected wear and tear), employees

will be responsible for replacing the equipment and/or supplies issued to them at their own expense

through payroll deduction.

80


Policy: Wage and Salary Administration

Policy No.: 300


Revised:

WAGE AND SALARY ADMINISTRATION

In establishing its wage and salary administration program, Professional Equities, Inc. strives to achieve

the following:

Attract and retain highly competent employees;

Offer employees incentives to excel in their work;

Maintain internal equity among employees based on similar education, skills, and

responsibilities;

Reward individual efforts; and

Comply with all governmental regulations.

The procedure for establishing wage scales and job ranges is:

To evaluate each job in objective terms;

To determine a job’s worth in comparison to other jobs in the organization;

To determine a job’s worth in comparison to the marketplace; and

To set an individual’s salary within the job range by using such factors as performance, time

in the specific job, the employee’s education, and the employee’s unique skill set.

Human Resources are responsible for the overall administration of all wage and salary programs and for

developing and publishing specific guidelines and policies for their implementation.

81


Policy: Employee Classifications

Policy No.: 301


Revised:

EMPLOYEE CLASSIFICATIONS

The Fair Labor Standards Act requires all employees to be classified according to the overtime provisions

of the law. For the purpose of paying any compensation, all employees are classified as either “Exempt”

or “Nonexempt” from overtime compensation. All determinations of wage classification status are made

through the job evaluation process.

The Human Resources Department is responsible for classifying all employees into one of three

categories for eligibility to receive certain benefits offered by Professional Equities, Inc. These categories

are defined as:

FULL-TIME – An employee who is normally scheduled to work 35 hours or more per week with

a minimum of 1,820 hours per year. All full-time employees qualify for Company benefits,

providing they meet eligibility requirements. If time worked falls below 35 hours per week for

four (4) consecutive weeks, employee will no longer be considered a full-time employee.

PART-TIME – An employee who is expected to establish a continuity of service, but is scheduled

for 30-34 hours per week or between 1,560-1,768 hours per year. A part-time employee is

expected to work more than 26 weeks per year. Part time employees who average less than 30

hours per week are not eligible for company group insurance or paid time off programs.

TEMPORARY [or SEASONAL] – An employee who is hired for a specific period of time and is

not expected to establish a continuity of service. It is expected that an employee should not

remain in temporary job status longer than six months.

82


Policy: Payday

Policy No.: 302


Revised:

PAYDAY

All employees are paid biweekly on a Friday. New employees should be advised by their managers when

they can expect to receive their first payroll check. Exempt employees are paid to date. Due to payroll

processing time, all hours worked by nonexempt employees through the Saturday one week prior to the

payroll date will be included on that payroll check. Professional Equities, Inc. strongly encourages all

employees to sign up for our Direct Deposit Program to ensure payroll is received on-time. Otherwise,

payroll is mailed either to the employee’s home address on record or to the property to be hand delivered

to the employee on payday.

Employees must report to their supervisor any change of address to ensure paychecks are mailed to the

correct address.

With the exception of employees who receive direct deposit, no payroll checks are allowed to be cashed

or deposited until after 3:00 p.m. on payday. A service charge of $25.00 will be charged against an

employee’s payroll if an employee cashes or deposits his/her pay check before 3:00 p.m. on payday.

There will be a one-time $25.00 set up fee deducted from an employee’s payroll on each garnishment plus

a $5.00 fee per pay period the garnishment exists.

If the pay day falls on paid holiday, paychecks will be distributed on the preceding work day.

83


Policy: Direct Deposit

Policy No.: 303


Revised:

DIRECT DEPOSIT

For the sake of convenience and efficiency for both the employee and the organization, employees must

have their payroll checks processed through direct deposit. If requested by the employee, the Payroll

Department will split an employee’s paycheck between four different checking or saving accounts.

Employees will be provided information by Human Resources in order to set up direct deposit.

84


Policy: Time Reporting

Policy No.: 304


Revised:

TIME REPORTING

All nonexempt employees must fill out a daily time sheet. These timesheets are used to compute earnings

and are kept as a permanent record. Each employee is responsible for accurate filling out of his/her time

sheet. Falsifying or altering your own or another employee’s time sheet is a violation of policy and is

grounds for termination.

Exempt employees are not required to record hours worked, except for billing purposes. Exempt

employees must report on the payroll transmittal form vacation days and sick days taken during the pay

period.

85


Policy: Overtime

Policy No.: 305



OVERTIME

When business conditions require, employees may be needed to work overtime. When this occurs, the

employee’s supervisor will make every effort to provide timely advance notice. Such a request for

overtime is considered to be mandatory.

The employee’s supervisor must approve all overtime prior to the employee working overtime. All

nonexempt employees will be paid one and one-half times their regular rate of pay for all hours worked in

excess of 40 in one workweek. Nonexempt employees who work on a company holiday will be paid for

the holiday as regular straight time, plus time and a half.

Holiday pay will be included as time worked in the computation of overtime. Vacation leave, sick leave,

personal leave, jury duty and bereavement leave will not be included as time worked in the computation

of overtime. Exempt employees are not eligible to be paid overtime.

86


Policy: Call Time

Policy No.: 306


Revised:

CALL TIME

Due to the nature of the business, nonexempt employees are occasionally required to respond to business

needs outside of normal business hours. Therefore, if nonexempt employees are called in to work outside

of their normal workday, they will be paid from the time they leave their home or location to the time

they return home. Failure to respond to emergency maintenance calls or failure to follow procedures

related to the automated emergency system will be grounds for corrective action up to and including

termination.

87


Policy: Signing Bonuses

Policy No.: 307


Revised:

SIGNING BONUSES

Occasionally it may be necessary for a hiring manager to offer a signing bonus in order to recruit a

particularly skilled candidate to fill an open position. When that becomes necessary, the President must

approve the signing bonus in writing prior to it being offered to the candidate.

If the employee accepts the signing bonus, the employee must sign an agreement to repay the signing

bonus in the event that the employee leaves the organization within one year of his/her hire date. If the

employee’s termination is due to a reduction in force, the repayment provision will be waived. The

agreement must be executed by the employee prior to receiving payment of the signing bonus.

88


Policy: Referral Bonuses

Policy No.: 308


Revised:

REFERRAL BONUSES

Employees are our best source for identifying qualified individuals to join Professional Equities, Inc.

Employees know the qualities our organization looks for and the skills and personalities that make

Professional Equities, Inc. a success.

In appreciation for helping recruit the very best candidates, employees who refer someone who is hired

into a full-time or part-time position with Professional Equities, Inc. will receive a $300 referral bonus

(less applicable taxes). Employees below the level of Vice President are eligible to participate in this

program. However, employees are not eligible for this incentive if they are recruiting someone who will

report directly to them in the course of their normal duties, if the candidate is already employed within

Professional Equities, Inc., or if the employee works in Human Resources. Half of the referral bonus will

be paid at the time the new employee begins work. The second half of the referral bonus will be paid at

the time the employee has been continuously employed for a minimum of six months. The referring

employee must be employed with Professional Equities, Inc. at the time any part of the referral bonus is

paid.

Any potential candidate for employment must list the referring employee on his/her employment

application. It is the responsibility of the referring employee to request the Referral Bonus in writing. All

requests must be submitted to Human Resources. It may take two pay periods to receive the referral

bonus based upon the payroll schedule.

89


Policy: Incentive Awards

Policy No.: 309


Revised:

INCENTIVE AWARDS

Professional Equities, Inc. is required by the IRS to report all payments to employees of whatever nature

and however funded on the employee’s annual W-2 form. This includes both cash and the fair market

value of any noncash awards.

If the award is valued at $500 or less, the entire amount will be added to the employee’s gross income and

deducted after tax on the payday following receipt of the award. If the award is valued at more than $500,

approximately $250 per paycheck will be added to the employee’s gross income and deducted after tax.

This will begin the payday following receipt of the award until the full value of the award is added to the

employee’s gross income. However, this procedure cannot extend beyond the calendar year in which the

award is received.

90


Policy: Payroll Advances / Loans

Policy No.: 310


Revised:

PAYROLL ADVANCES / LOANS

Employee payroll advances will not be considered. Employees should be encouraged to use their banking

institution or other resources whenever loans are needed.

Employees who wish to receive paychecks early must have approval from the General Manager. These

checks will not be cashable until the actual pay date. Early check receipt, for reasons other than vacation,

should be discouraged.

91

Section: Benefits

Policy: Vacation Leave

Policy No.: 400



VACATION

Vacation with pay is available to eligible full-time employees who work at least thirty hours per week on

average. The amount of paid vacation time employees receive each year increases with the length of their

employment. Vacation time begins to accrue with the employee’s first full biweekly pay cycle based on

the table below:

Length of Service Hours per Pay Period Hours per year

Start date through the 8th calendar year 3.08 80

9th calendar year through 19

th calendar year 4.62 120

20th calendar year through 24

th calendar year 6.16 160

25th calendar year and beyond 7.70 200

Vacation time may be taken at any time during the year except that it must be scheduled in advance to

avoid conflicts with other employees’ vacation time and subject to workload demands. Employee’s must

request their vacation on the Vacation Request Form and be given to their supervisor for review and final

approval from the General Manager. All requests for vacation should be submitted at least thirty days in

advance of the vacation start date, but preferably sixty days prior. In emergency situations, the supervisor

may waive the thirty day advance approval requirement. Vacation time may not be taken during the

employee’s introductory 90 day period.

Employees may request to carry unused vacation time into the following year. Vacation time carried

forward may not exceed 40 hours accrued during the previous year for employees who earn 80 hours per

year; 60 hours for employees who earn 120 hours per year; and 80 hours for employees who earn 160 to

200 hours per year. Any unused vacation time carried forward in excess of allowable banked hours

accrued in the previous year will be forfeited.

The organization believes that it is in an employee’s best interest that he/she takes vacation time each year

in order to maintain a balanced life. Employees are encouraged to use available paid vacation time for

rest, relaxation, and personal pursuits.

In the event of termination, employees will be paid for any accrued, but unused vacation hours with the

exception of employees terminated for misconduct.

If a holiday falls within an employee’s vacation, the employee will not be charged vacation hours for the

holiday, but will be paid for the holiday at the appropriate holiday rate.

Vacation approval shall be based on individual office/property locations. The property manager will have

first position for vacation time then Assistant Manager then office staff by seniority. The same will apply

for the service department. The corporate office will follow likewise with management chain of

command followed by staff seniority.

92

Section: Benefits

Policy: Holidays

Policy No.: 401



HOLIDAYS

Professional Equities, Inc. will recognize the following days as paid holidays:

Holiday Date Usually Observed

New Year's Day January 1

Memorial Day Last Monday in May

Independence Day July 4

Labor Day First Monday in September

Thanksgiving Day Fourth Thursday in November

Christmas Eve ½ day December 24

Christmas Day December 25

New Year’s Eve ½ day December 31

All full-time employees are eligible for eight hours of holiday pay beginning with their first day of

employment. All part-time employees who work at least 30 hours per week and who are eligible for

holiday pay will receive six hours holiday pay beginning thirty days after their first day of employment.

To be paid for a holiday, employees must work their last scheduled workday before and their first

scheduled workday after the holiday. Holidays occurring during an employee's scheduled vacation are

treated as holidays and are not counted as vacation days.

If a nonexempt employee is required to work on a scheduled holiday, the employee will be paid one and

one-half times the regular rate of pay for each hour worked.

Holidays that fall on a weekend day will be recognized either on the Friday preceding the holiday or the

following Monday. Typically, when the holiday falls on a Saturday the holiday will be observed on the

preceding Friday. When the holiday falls on a Sunday the holiday will be observed on the following

Monday.

If a holiday falls on an employee’s normal day off, the employee will be able to take another day off

during that same workweek, but must be approved by his/her direct supervisor.

93

Section: Benefits

Policy: Sick Leave

Policy No.: 402


Revised:

SICK LEAVE

Full-time employees accrue paid sick leave that may be used when absence from work is necessary due to

illness. Sick leave also may be used in limited instances when absence from work is due to illness in the

employee's immediate family. Employees accrue sick leave at the rate of 1.54 hours each payroll period

(approximately 40 hours of sick leave per year). Part-time employees who average between 30-34 hours

per week will be provided 30 hours of sick leave per year which shall accrue at 1.15 hours each payroll

period.

Sick leave is not payable upon termination and may not be counted toward the computation of overtime.

Sick leave will not accrue for any payroll period during which an employee is absent for more than six

working days except for absences during which the employee is being paid for accrued vacation time,

sick time, or holidays. Sick leave should be treated as a form of insurance and not as extra days off from

work.

When an illness exceeds two consecutive workdays, employees must furnish a medical statement from

their health care provider detailing the duration of the illness and the physician's diagnosis. However, a

medical statement from the physician may be requested at any time by Professional Equities, Inc. if

employees do not have sufficient sick leave to cover the absence, they will be subject to corrective action

up to and including termination for attendance regardless of whether a medical statement is furnished.

Once an employee has given or received notice of termination of employment, he/she is ineligible for

paid sick leave.

Employees should provide prior notice to their supervisor when requesting sick leave. If that is not

possible, employees are required to call in by their scheduled start time to notify their supervisor they will

be taking sick leave that day. Employees must maintain daily contact with their supervisor informing

them of the status of return.

Accrued sick leave unused may be sold back to Professional Equities, Inc. at 50 percent of its value at the

employee's current rate of pay. Employees must request payment within four weeks of their anniversary

date. The annual maximum sick leave that may be sold back under this program is 40 hours.

94

Section: Benefits

Policy: Military / Reserve Leave

Policy No.: 403


Revised:

MILITARY / RESERVE LEAVE

Professional Equities, Inc. will abide by all the provisions of the Uniformed Services Employment and

Re-Employment Rights Act (USERRA) and will grant military leave to all eligible full-time and part-time

employees. Military leave may be granted to full-time and part-time employees for a period of four years

plus a one-year voluntary extension of active duty (five years total) if this is at the request and for the

convenience of the United States government.

As with any leave of absence, employees must provide advance notice to their supervisor of their intent to

take a military leave and must provide appropriate documentation unless giving such notice is impossible,

unreasonable, or precluded by military necessity.

An employee’s salary will not continue during a military leave unless required by law. However,

employees may request to use any vacation leave time accrued prior to military leave. Benefit coverage

will continue for 31 days as long as employees pay their normal portion of the cost of benefits. For leaves

lasting longer than 31 days, employees will be eligible to continue health benefits under COBRA and will

be required to pay 102 percent of the total cost of their health benefits if they wish to continue benefits.

Upon return from military leave, employees will be reinstated with the same seniority, pay, status, and

benefit rights that they would have had if they had worked continuously. Employees must apply for

employment within 90 days of discharge from the military. Employees who fail to report for work within

the prescribed time after completion of military service will be considered to have voluntarily terminated

their employment.

If employees are reservists in any branch of the Armed Forces or members of the National Guard, they

will be granted time off for military training. Such time off will not be considered vacation time.

However, employees may elect to have their reserve duty period be considered as vacation time to the

extent they have such time available.

95

Section: Benefits

Policy: Bereavement (Funeral) Leave

Policy No.: 404


Revised:

BEREAVEMENT (FUNERAL) LEAVE

Professional Equities, Inc. recognizes the need for time away from work in instances of personal loss.

Should a death occur in the immediate family of any full-time employee, he/she will be granted two days

off with pay. If the funeral is more than 150 miles away from home, he/she will be granted three days off

with pay. If employees need time in excess of three days, they may request a leave of absence or use

accrued vacation leave time with the approval of their supervisor and the General Manager.

Immediate family shall be defined as spouse, child, stepchild, father, mother, stepparents, brother, sister,

stepbrother, stepsister, grandmother, grandfather, grandchild, father-in-law, mother-in-law, brother-in-

law, or sister-in law.

If the employee suffers a loss of extended family members (aunt, uncle, niece or nephew) you may take

one day of paid leave to attend the funeral and related matters. If the funeral is more than 150 miles

away, two (2) paid days will be allowed.

Payment for bereavement leave is at the employee's straight time rate of pay. Time off without pay

and/or vacation day(s) may be granted to attend the funerals of other close relatives or friends upon

approval by the employee's supervisor.

To be eligible for the excused absence and pay provisions of this policy, employees are to request

bereavement leave through their supervisor no later than the 2nd

scheduled workday following the death of

a family member.

Professional Equities, Inc. reserves the right to request all pertinent information including deceased

relative's name, the name and address of the funeral home, and the date of the funeral.

96

Section: Benefits

Policy: Jury Duty / Witness Service

Policy No.: 405


Revised:

JURY DUTY / WITNESS SERVICE

Full-time, part-time, or temporary employees called to serve on a jury or to testify as a voluntary witness

at the request of Professional Equities, Inc. subpoena or otherwise will be paid for the day or days in

which the court requires attendance. If employees are subpoenaed to appear in court as witnesses, but not

at the request of Professional Equities, Inc., they will be excused from work in order to comply with the

subpoena but will not be paid for the time off.

Employees must present any summons to their supervisor on the first working day after receiving the

notice. If an employee is not required to serve on a day he/she is normally scheduled to work or if the

employee is excused before serving three hours of jury duty, he/she is expected to report to work.

Employees may keep any compensation they are paid for jury duty or witness service. They will be paid

their straight time base rate of pay for all hours missed due to jury duty or witness service on behalf of

Professional Equities, Inc. in addition to any compensation received from the court up to five business

days within a twelve month period. Compensation for witness service will be paid only if the employee is

summoned for witness service by Professional Equities, Inc.

97

Section: Benefits

Policy: Eligibility for Benefits

Policy No.: 406


Revised:

ELIGIBILITY FOR BENEFITS

An employee’s eligibility to participate in the benefit programs is determined by the following

classifications:

Full-time employees who are regularly scheduled to work 35 or more hours per week are

eligible for full company benefits after ninety days from date of hire.

Part-time employees who are regularly scheduled to work 30-34 hours per week are eligible

for partial or reduced company benefits after ninety days from date of hire.

Professional Equities, Inc. pays a significant portion of the costs of these benefits for employees.

Employee contributions will be deducted from their paychecks on a pre-tax basis. Employees will pay no

Federal or Social Security taxes on this amount.

98

Section: Benefits

Policy: Health and Welfare Benefits

Policy No.: 407



HEALTH AND WELFARE BENEFITS

Once employees have met the appropriate eligibility requirements, they may be eligible to participate in

the plans described below. This is merely a summary. More detailed information about each plan can be

found in the plan documents maintained in Human Resources and the summary plan descriptions (SPDs).

SPDs are the official documents regarding employee benefit plans and supersede all references to

employee benefits in this manual.

Medical Insurance After 90 days of continuous employment

Prescription Drug Program After 90 days of continuous employment

Life Insurance After 90 days of continuous employment

Supplemental Insurance Start date

Flexible Reimbursement Account Start date

Profit Sharing Plan After 12 months of continuous employment in the Plan

year that runs from September 30th to September 30

th.

99

Section: Benefits

Policy: Group Insurance Programs

Policy No.: 408


Revised:

GROUP MEDICAL AND PRESCIPTION DRUG INSURANCE PROGRAM

For all eligible employees, the Company provides a Group Medical and Prescription Drug Insurance

Program. The employee is required to accept or waive coverage within the first thirty (30) days of

employment. Employees are eligible for this benefit on the 1st day of the month after ninety (90) days of

employment.

The company makes the following coverage’s available to its eligible employees.

Employee Only

Employee and Spouse

Employee and Child(ren)

Family

The employee is required to pay a portion of the total premium through a payroll deduction and the

employee portion of the deductible. This premium deduction is either on a pre-tax or after tax basis

depending on the selection of the employee. Employees are encouraged to select their deduction on a pre-

tax basis.

Medical and prescription drug insurance coverage shall terminate the end of the month the employee’s

employment ends. Employee’s who leave the company have the right to continue coverage pursuant to

the terms and requirements of COBRA. Employee’s have sixty (60) days within which to elect COBRA

coverage and will be responsible for payment of premiums to maintain such coverage.

The Company reserves the right to change, modify or revoke the Group Medical and Prescription Drug

Insurance Program at any time with at least thirty days notice to employees.

GROUP LIFE INSURANCE PROGRAM

For all eligible employees, the Company provides a Group Life Insurance Program. The employee is

required to accept or waive coverage within the first thirty (30) days of employment. Employees are

eligible for this benefit on the 1st day of the month after ninety (90) days of employment.

The Company provides eligible employees a death benefit of $20,000. The Company pays 100% of the

premium due. Group life insurance coverage shall terminate the end of the month the employee’s

employment ends. Upon termination, employees may inquire with Human Resources about conversion

options.

SUPPLEMENTAL INSURANCE PROGRAM

The Company offers eligible employees the option to purchase various supplemental insurance policies

through AFLAC through payroll deductions on a pre-tax basis. These policies are owned by the

employee and are portable.

100

FLEXIBLE SPENDING ACCOUNTS

The Company offers a Section 125 Cafeteria Plan that allows employees to have funds deducted from

their payroll on a pre-tax basis and deposited into an account to be used for the payment of un-reimbursed

medical expenses and/or dependent care expenses.

101

Section: Benefits

Policy: Profit Sharing Plan

Policy No.: 409


Revised:

PROFIT SHARING PLAN

Professional Equities, Inc. provides a profit sharing plan to eligible employees. This plan is fully funded

by Professional Equities, Inc. The terms of the Plan are explained in detail in the Summary Plan

Description (SPD). All employees should receive a copy of the SPD within ninety (90) days of becoming

a participant. If an employee does not receive a copy of the SPD may contact Human Resources for a

copy.

All full-time and eligible part-time employees who work at least 1,000 hours during the Plan year and

who are at least 23 years of age and have completed one year of employment with the company are

eligible to participate in the Profit Sharing Plan.

The Company decides the contribution, if any, that will be made to the Plan following the close of the

Plan year. Any contribution will equal between 1 and 10 percent of each employees compensation paid

during the Plan year. Employees are not eligible to make contributions to the Plan.

For more information regarding the Profit Sharing Plan, please contact Human Resources.

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Section: Benefits

Policy: Family and Medical Leave (FMLA)

Policy No.: 410


Revised:

FAMILY AND MEDICAL LEAVE (FMLA)

Employees of Professional Equities, Inc. are eligible for family and medical leave if they have at least 12

months of service, have worked at least 1,250 hours within the preceding 12-month period, and work at a

worksite where there are at least 50 employees within a 75-mile radius. If eligible, an employee may be

able to take up to 12 weeks of unpaid leave during a 12-month period for the following reasons:

The birth of a child or to care for a child within the first 12 months after birth;

The placement of a child with the employee for adoption or foster care and to bond with and care

for the child (within the first 12 months after placement);

To care for an immediate family member who has a serious health condition;

For a serious health condition that makes the employee unable to perform the functions of his/her

position; or

If the employee experiences a qualifying exigency that arises out of the fact that a spouse, parent,

or child has been called to or is on active military duty as a member of the National Guard or

military reserves.

Military Caregiver Leave. In addition, an employee who is the spouse, parent, child, or next of kin of a

current member of the armed forces (including the regular armed forces) who was injured while on active

duty may be eligible for up to 26 weeks of FMLA leave in a 12-month period, including the types of

leave listed above.

Notice of Leave. When requesting leave, the employee must:

Supply sufficient information for Professional Equities, Inc. to be aware that the FMLA may

apply to the leave request, as well as information regarding the anticipated timing and duration of

leave;

Provide notice of the need for leave at least 30 days in advance or as soon as practicable;

Cooperate with all requests for information regarding whether absences are FMLA-qualifying.

Failure to comply may result in leave being delayed or denied.

Intermittent Leave. When medically necessary, employees may take FMLA leave intermittently or on a

reduced schedule basis for their own serious health condition, the serious health condition of a family

member, or for military caregiver leave. Employees are required to cooperate with Professional Equities,

Inc. to arrange reduced work schedules or intermittent leave so as to minimize disruption of business

operations.

Qualifying exigency leave may be taken intermittently without regard to medical necessity or disruption

of business operations.

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Leave because of the birth or adoption of a child may not be taken intermittently and must be completed

within the 12-month period beginning on the date of birth or placement of the child.

Medical and other Certifications. Employees will be required to provide a medical certification if the

leave request is: 1) for the employee’s own serious health condition, 2) to care for a family member’s

serious health condition, or 3) military caregiver leave. Failure to provide the requested certification in a

timely manner may result in denial of the leave until it is provided. If an employee refuses to provide a

certification, his/her leave request may be denied and the employee may be disciplined.

Professional Equities, Inc., at its expense, may require a medical examination by a health care provider of

its own choosing if it has a reasonable question regarding the medical certification provided by the

employee. In lieu of a second opinion, Professional Equities, Inc. may contact the health care provider

directly to clarify or authenticate a medical certification, including certifications for military caregiver

leave. Second opinions may not be required for military caregiver leave.

Separate certification may also be required regarding the nature of the family member’s military service

and/or the existence of a qualifying exigency.

Fitness for Duty Certifications. Because Professional Equities, Inc. wishes to ensure the well-being of

all employees, any employee returning from FMLA leave for his/her own serious health condition will

need to provide a Fitness for Duty (FFD) certification signed by his/her health care provider. An

employee who fails to provide an FFD certification will be prohibited from returning to work until it is

provided. An employee who fails to provide an FFD certification may be disciplined or terminated.

FFD certifications may be required when an employee returns from intermittent FMLA leave if serious

concerns exist regarding the employee’s ability to resume his/her duties safely.

Maintenance of Benefits. Professional Equities, Inc. will maintain health care benefits for the employee

while on FMLA leave, but the employee is responsible for paying the normal monthly contribution. If the

employee elects not to return to work at the end of the leave period, the employee will be required to

reimburse Professional Equities, Inc. for the cost of premiums paid for maintaining coverage during the

leave period. All other benefits cease to accrue during the unpaid portion of the leave.

Concurrent Leave. Employees must use any accumulated sick leave and vacation time to the extent

available during FMLA leave unless such leave is covered under workers’ compensation, in which case

the employee may use accumulated leave time only for the purpose of satisfying any waiting period.

Absences in excess of these accumulated days will be treated as FMLA leave without pay.

Married Couples Who Work for Professional Equities, Inc. If an employee and his/her spouse both

work for Professional Equities, Inc., they are both eligible for leave. The employee and employee spouse

may be limited to a combined total of 12 weeks of FMLA leave in a 12-month period if the leave is taken

for:

104

The birth, adoption, or foster placement of a child;

To care for and bond with such child who does not suffer from a serious health condition;

To care for a parent with a serious health condition; or

A combination of the above.

For military caregiver leave, the employee and employee spouse may be limited to a combined total of 26

weeks of leave in a 12-month period, including the types of leave listed above in this paragraph.

Absenteeism, FMLA leave may be counted as an absence under Professional Equities, Inc. attendance

policy.

Return from Leave. Upon return from leave, the employee will be restored to his/her original or an

equivalent position. An employee who fails to return at the end of FMLA leave will in most cases be

considered to have voluntarily resigned his/her position with Professional Equities, Inc. Employees who

do not return to work at the end of their leave will be terminated unless they are entitled to additional

leave as a reasonable accommodation under the Americans with Disabilities Act.

State and Local Laws. When state and local laws offer more protection or benefits, the protection or

benefits provided by those laws will apply.

105

Section: Benefits

Policy: COBRA

Policy No.: 411


Revised:

CONTINUATION OF HEALTH PLAN COVERAGES

Under "COBRA" (Public Law 99-272, Title X), Professional Equities, Inc. will offer employees and their

families the opportunity for a temporary extension of health coverage (called "continuation coverage") at

group rates in certain instances where coverage under the health plans would otherwise end. Persons

eligible to continue coverage under COBRA are known as “qualified beneficiaries,” and the events that

trigger continuation of coverage are known as “qualifying events.”

If an employee is covered by any of Professional Equities, Inc. group health plans, the employee has the

right to elect continuation coverage under those plans if the employee loses group health coverage as a

result of either of the following qualifying events:

Reduction in the employee’s hours of employment, or

Termination of the employee’s employment for reasons other than gross misconduct.

If an employee’s spouse is covered by any of Professional Equities, Inc. group health plans, the spouse

has the right to elect continuation of coverage under those plans if the spouse loses group health coverage

as a result of any of the following qualifying events:

Death of the employee;

Termination of the employee's employment or reduction in the employee's hours of

employment;

Divorce or legal separation from the employee; or

Employee becomes entitled to Medicare.

If a dependent child of an employee is covered by Professional Equities, Inc. group health plans, the child

has the right to elect continuation of coverage under those plans if the child loses group health coverage

as a result of any of the following qualifying events:

Death of the employee;

Termination of the employee's employment or reduction in the employee's hours of

employment with Professional Equities, Inc.;

Employee's divorce or legal separation;

Employee becomes entitled to Medicare; or

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Child ceases to be a "dependent child" under the Professional Equities, Inc. group health

plans.

Retirees, their spouses, and their dependent children also may be entitled to elect continuation of coverage

under COBRA if Professional Equities, Inc. begins a bankruptcy proceeding and those persons lose group

health coverage within one year before or after the bankruptcy proceeding commences.

The qualified beneficiary is responsible for informing Professional Equities, Inc. of a divorce, legal

separation, or a child losing dependent status within sixty (60) days of the date of the later of the

qualifying event or the date on which coverage would end under the plan because of the event. If

Professional Equities, Inc. does not receive notice within that sixty (60) day period, the qualified

beneficiary is not entitled to elect continuation of coverage. Professional Equities, Inc. is responsible for

notifying qualified beneficiaries of their right to elect continuation of coverage as a result of the

employee's death, termination of employment, reduction in hours, or Medicare entitlement.

Once qualified beneficiaries receive notice of their right to elect continuation of coverage, the qualified

beneficiaries have sixty (60) days from the later of the date they are provided notice or the date they lose

coverage to inform Professional Equities, Inc. they want to continue their group health coverage under

COBRA. If the qualified beneficiaries do not elect continuation of coverage by the end of the sixty (60)

day period, they forfeit their right to elect that coverage.

Generally qualified beneficiaries may continue coverage under COBRA thirty-six (36) months from the

date of the qualifying event. However, if the qualifying event is an employee’s termination or reduction

in hours of employment, continuation coverage under COBRA will last for only eighteen (18) months

from the date of the qualifying event. This eighteen (18) month period may be extended to thirty-six (36)

months if other events (such as death, divorce, legal separation, or Medicare entitlement) occur during

this eighteen (18) month period. However, in no case will any period of continuation coverage be longer

than thirty-six (36) months. Also, the eighteen (18) month period may be extended for an additional

eleven (11) months (to a total of twenty-nine (29) months) if a qualifying beneficiary is determined to be

disabled by the Social Security Administration at any time during the first sixty (60) days of continuation

coverage. In order to qualify for this extension, Professional Equities, Inc. must be notified of the

disability determination within sixty (60) days of the determination and before the expiration of the

original eighteen (18) month period. The affected individual also must notify Professional Equities, Inc.

within thirty (30) days of any final determination that the individual is no longer disabled. If the qualified

beneficiary entitled to the disability extension has nondisabled family members, those nondisabled family

members also are entitled to the twenty-nine (29) month extension.

However, continuation coverage will be canceled for the following reasons:

Professional Equities, Inc. no longer provides group health coverage to any of its employees;

A COBRA premium is not paid on time;

Qualified beneficiary becomes covered, after the date of COBRA election, under another

group health plan, which does not exclude or limit coverage for the qualified beneficiary’s

preexisting conditions;

Qualified beneficiary becomes entitled to Medicare after the date of the COBRA election; or

Qualified beneficiary is no longer determined to be disabled, where coverage was extended

because of disability beyond eighteen (18 months).

107

Continuation of coverage under COBRA is not effective until the qualified beneficiary elects coverage,

but, once elected, the coverage is retroactive to the date of the qualifying event. Qualifying beneficiaries

do not have to show that they are insurable to choose continuation coverage, but they must be eligible for

such coverage. Professional Equities, Inc. reserves the right to retroactively terminate COBRA coverage

if an individual is determined to be ineligible.

If the qualified beneficiary is a covered former employee, he/she may add newborn or adopted child(ren)

to his/her continuation coverage, provided the child(ren) are added within thirty (30) days of the birth or

adoption and the additional premium is paid. These children that are added will be considered qualified

beneficiaries under the law.

Qualified beneficiaries must pay the designated premiums for their continuation coverage in a timely

fashion. Qualified beneficiaries have forty-five (45) days from the date they elect continuation coverage

to pay the initial COBRA premium. Continuation coverage does not start until the date the individual

chooses continuation coverage. Thereafter, he/she will have a grace period of thirty (30) days to pay any

subsequent premiums.

At the end of the COBRA continuation period, qualified beneficiaries may be allowed to convert their

group to an individual policy if such an option is available.

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Section: Benefits

Policy: Employee Recognition Programs

Policy No.: 412


Revised:

EMPLOYEE RECOGNITION PROGRAMS

Professional Equities, Inc. has established two programs to recognize employees who perform beyond

expectations.

Outstanding Performer Awards

The Outstanding Performer Award, which carries with it a $100 incentive payment, is given to employees

who are nominated and selected based on the following criteria:

Meeting or exceeding goals or responsibilities assigned;

Willingness to take on additional responsibilities;

Fostering increased productivity or increased efficiency;

Cost containment;

Cooperation; and

Superior customer service.

Any employee may be nominated by another employee for this award. However, Managers are expected

to make nominations each quarter. Nominations should be made in writing with an explanation as to

what the employee has done that makes him/her an Outstanding Performer. Those nominations need to

be received by the General Manager before the end of each quarter to be considered for that quarter. The

cutoff dates for nominations for each quarter are as follows:

March 31

June 30

September 30

December 31

Outstanding Performer Awards will be announced within 15 days of the end of the quarter. Selections

will be made by the General Manager. Outstanding Performers will be selected each quarter from various

areas of the organization. If sufficient nominations are made, there will be an Outstanding Performer

from each of the following areas of the organization:

Leasing / Grounds / Maintenance

Corporate Support Staff

Property Manager

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Pat on the Back Awards

The “Pat on the Back" program provides managers with the ability to issue a certificate to an employee

who makes a special effort. This form is two-ply so the employee receives the original and a copy of the

form is put in the employee's personnel file. Once an employee accumulates three of these forms, he/she

may cash them in for a $50 bonus.

In order to receive payment, employees need to turn their forms in to Human Resources. Human

Resources will be responsible for processing the forms for payment through Payroll.

110

Section: Benefits

Policy: Tuition Reimbursement

Policy No.: 413


Revised:

TUITION REIMBURSEMENT

The purpose of the tuition reimbursement plan is to encourage the development of all full-time

employees. Tuition reimbursement may be granted for courses that are work-related, that maintain or

improve the skills required by employees in their employment, that may be necessary for the anticipated

needs of the organization or that may make employees more valuable to the organization. Courses must

be taken at an accredited college, university, approved trade school, approved technical school or industry

courses offered through NAA, IREM or SSA. When questions arise concerning whether or not a course

qualifies under the plan, they will be decided by the Vice President of Human Resources.

Before enrolling in a course, an employee must apply for education reimbursement and have it approved

by his/her supervisor. Final approval will be determined by the General Manager. Requests for

undergraduate course reimbursement will be limited to those employees who are outstanding performers

as evidence on their Employee Evaluations. The maximum amount of reimbursement is based on an

employee’s years of service. Employees must complete one year of full-time service before they are

eligible for this benefit. The maximum annual reimbursement amount for undergraduate courses is

$1,000 during the second year of service and $1,500 during the third year and each year thereafter.

Reimbursable expenses include tuition, certain administrative fees, laboratory and technical fees, and

required textbooks (up to $200 per course). Incidental fees, such as parking permits, supplies, and

recreation fees/activity fees are not covered under this plan

Leasing Consultants are encouraged to attain the NAA designation of National Apartment Leasing

Professional. Assistant Managers and Property Managers are encouraged to attain the NAA designation

of Certified Apartment Manager or the IREM designation of Accredited Residential Manager. Property

Managers who already have earned their CAM or ARM designation and who manage multiple properties

are encouraged to attain the NAA designation of Certified Apartment Professional Supervisor or the

IREM designation Certified Property Manager. Grounds Professionals are encouraged to attain the

designation of Certified Pool Operator and take other seminars and classes related to landscaping and

horticulture. Maintenance Professionals are encouraged to attain the NAA designation of Certified

Apartment Maintenance Technician and Class I and II or Universal EPA designation.

Reimbursement will be made upon successful completion of the course (a grade of “C” or better or a

“pass” for a pass/fail course). In order to receive payment, the employee must provide a copy of the

official grade report and all relevant receipts. To obtain reimbursement, the employees must still be

employed by Professional Equities, Inc. at the time reimbursement is paid.

Because this benefit is offered to employees to maintain or improve their required skills and to encourage

their further development while increasing their contribution to the organization, any employee who

leaves Professional Equities, Inc. within one year of receiving any tuition reimbursement will be required

to repay any tuition paid on his/her behalf during the last 12 months of employment. Any deficiency

owed under this program becomes immediately due and payable at the time of termination. The

organization has the right to deduct any deficiency from any monies due and owing the employee

including but not limited to paychecks, expense checks, and commissions.

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Section: Benefits

Policy: Service Awards

Policy No.: 414


Revised:

SERVICE AWARDS

Service awards will be given to all full-time employees. Awards will be issued in increments of five

years of completed service. All full-time, part-time, and temporary service will be considered in

determining service credit.

Employees with five years of service will be presented with an award at a presentation within their

property. The employee's manager is responsible for arranging the presentation and presenting the award.

Employees with 10 or more years of service will be honored at a monthly service award luncheon. The

Human Resources Department will be responsible for scheduling the luncheon and inviting all managers

in the employee's chain of command. The employee’s immediate supervisor will make the award

presentation at the luncheon.

The Human Resources Department is responsible for ordering all service awards and notifying the

employee's supervisor.

112

Section: Benefits

Policy: Voting

Policy No.: 415


Revised:

VOTING

Professional Equities, Inc. encourages its employees to participate in the election of government leaders.

In Missouri, polling places are open from 6:00 a.m. to 7:00 p.m. Employees shall be given three (3)

successive hours to vote. Three successive hours shall be defined as three hours from the time the polls

open. For example, if the employee’s normal start time is 7:00 a.m. then the employee may report to

work no later than 9:00 a.m. and will be paid for the two hours. Employees will not be allowed to leave

work to vote. If an employee does not vote between 6:00 a.m. and 9:00 a.m. then he/she will have the

option to vote after work before the polls close. Every effort should be made to vote either before or after

the employee’s normal workday.

113

Section: Benefits

Policy: Employee Apartments

Policy No.: 416


Revised:

EMPLOYEE APARTMENTS

Employees who live on-site must sign a lease and an employee apartment rider. The company may or

may not elect, in its discretion to have rent and utilities deducted from the employees pay and/or to have

the employee receive an ACTIVE EMPLOYEE RENT CREDIT. If rent is deducted from the employees

pay, the amount of rent will be stated on the EMPLOYEE APARTMENT RIDER on bi-weekly basis to

coincide with the payroll period two weeks in advance of the rent billing cycle, in equal installments.

114

Section: Safety

Policy: Injury / Illness on the Job

Policy No.: 500


Revised:

INJURY / ILLNESS ON THE JOB

Any employee reporting an on-the-job injury or illness will receive immediate and appropriate medical

treatment. All applicable federal, state, and local laws or regulations pertaining to occupational injuries or

illnesses will be followed and complied with at all times.

It is the responsibility of all employees to report immediately in writing to their supervisor all on-the-job

injuries or illnesses regardless of how insignificant or minor the injury or illness may appear at the time.

Incident Report Forms are provided for this purpose and may be obtained from any supervisor or Human

Resources. The supervisor will then complete a Supervisor's Incident Investigation Report Form. These

reports should be sent to Human Resources. Failure to report an injury or illness as required by state law

and organization policy could result in loss of compensation benefits, and possibly lead to corrective

action up to and including termination.

When employees sustain an injury or illness that requires outside medical treatment, the employees will

be subject to completing a screening for the presence of drugs and/or alcohol in their system provided

state law permits these tests. When employees are involved in a mobile equipment accident that results in

significant damage, the employees will be subject to completing a screening for the presence of drugs

and/or alcohol in their system, provided state law permits these tests. Any employee who refuses

screening for the presence of drugs and/or alcohol will be subject to immediate termination.

In the event the injury is of the nature that requires outside medical treatment, employees will be paid for

their entire shift and should not clock out. If subsequent medical visits are necessary, employees should

schedule those during non-work hours if possible. Employees should clock out if the appointment is

during their regular work shift. If employees must miss work in order to receive authorized medical

follow-up treatments for a work-related injury or illness, they will receive pay for up to two hours per

visit.

Employees must be employed at least ninety (90) day to be eligible to move into a company owned or

managed apartment. Employees who are approved to live on-site are required to follow all terms and

conditions of their lease and material non-compliance of their lease could result in discharge.

115

Section: Safety

Policy: Workers’ Compensation

Policy No.: 501


Revised:

WORKERS' COMPENSATION

Injuries occurring in the course of employment are paid for by workers' compensation insurance.

Workers' compensation insurance pays all medical costs, without a deductible provision, and is paid for

exclusively by Professional Equities, Inc. There are well-defined provisions that must be met to ensure

that employees qualify for workers' compensation benefits.

Any work-related injury or illness must be immediately reported in writing to the employee's supervisor

or within 72 hours. The workers' compensation insurer will investigate all late reported claims. Where

facts cannot be verified, the claim will be denied. Any claim for an injury or illness caused by an

employee's willful misconduct, alcohol or drug usage, or that occurs during the employee’s voluntary

participation in any off-duty recreational, social, or athletic activity sponsored by Professional Equities,

Inc., will not be compensable. Workers' compensation fraud is a felony, punishable by fines and/or jail

time. The organization will prosecute any individual found to be claiming a work-related illness or injury

fraudulently.

An approved physician must treat the injured employee. Specialists will be assigned by Professional

Equities, Inc. in certain cases. Any treatment other than that approved by Professional Equities, Inc. will

not be compensable.

There are two types of workers' compensation benefits paid to an employee with a work-related injury or

illness. These are medical and wage replacement benefits.

Medical benefits include the following:

Physician's Fees [or health care provider fees] - The approved physician [or health care

provider] who provides treatment is paid through the workers' compensation insurer;

Hospital Fees - Paid in full;

Pharmacy Costs - Paid in full if prescribed by an approved physician; and

Special Costs - Any other medical costs including but not limited to braces, crutches, physical

therapy, and rehabilitation therapy, if deemed necessary by an approved physician [or health

care provider], will be paid in full according to state law.

Wage replacement benefits are paid during the time employees are temporarily disabled because of a

work-related injury or illness. Employees receive a percentage of their salary as set by state law.

The workers' compensation laws provide for a waiting period before injured employees become eligible

for wage replacement benefits. Employees will be covered for the period of disability to the limit allowed

under the state workers' compensation law. The workers' compensation insurer will pay the employee.

The check will be mailed to the employee's home address.

Employees who decline temporary modified duty in order to return to work from a leave of absence due

to a workers' compensation injury will be considered to have resigned and will be terminated. If

116

employees are eligible for family and medical leave because of the employees’ personal health condition,

they will have their workers' compensation benefits terminated if they refuse temporary modified duty for

which the employee is qualified. Any employee who fails to return to work after being released by an

approved physician will be considered to have resigned and will be terminated.

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Section: Safety

Policy: Temporary Modified Duty

Policy No.: 502


Revised:

TEMPORARY MODIFIED DUTY

Professional Equities, Inc. is committed to providing work, when possible, for employees who have been

restricted by a physician [or a health care provider] due to a work-related injury or illness. Such work

will be provided subject to availability. Work will be assigned according to the nature of the injury or

illness and the limitations set forth by the treating physician [or health care provider]. Every effort will be

made to place employees in positions within their own departments. If necessary, an employee will be

placed wherever an appropriate position is available.

While on temporary modified duty, employees will continue to receive their regular rate of pay.

Employees who are placed outside their department will continue to have their salary charged to their

regular department.

Employees on temporary modified duty must furnish a written update of their medical condition to the

Vice President of Human Resources from the treating physician [or health care provider] after each visit

in order to remain in the reassigned job. Temporary modified-duty assignments are limited to a period of

90 days, subject to review. Being placed on a temporary modified-duty assignment does not excuse an

employee from following all rules and regulations.

118

Section: Safety

Policy: Security and Loss Prevention

Policy No.: 503


Revised:

SECURITY AND LOSS PREVENTION

Professional Equities, Inc. has installed and maintains an elaborate security system to protect the premises

from fire, unlawful entry, and theft. Employees will be given the details of the system if it is determined

that such knowledge is necessary to perform their job duties. Employees are encouraged to assist

management in ensuring that the system is not compromised in any way. Tampering with the system,

violating procedures, or revealing any details about the security system to others may result in immediate

termination.

In the case of emergency, dial 911. Exits, fire extinguishers and first-aid kits are located throughout our

business offices. Exits and areas around fire extinguishers must be kept clear at all times.

Employees must report any suspicious behavior in or around company property to their supervisor or any

member of management. Doors that are supposed to be kept closed and/or locked should not be left open

and locks should not be tampered with. Employees who have building keys and codes must safeguard

them and follow guidelines for using them.

119


Policy: Statutory Conflicts

Policy No.: 600


Revised:

STATUTORY CONFLICTS

To the extent that any policy may conflict with federal, state, or local laws, the organization will abide by

the applicable federal, state, or local law.

120


Policy: Policy Changes

Policy No.: 601


Revised:

POLICY CHANGES

Professional Equities, Inc. reserves the right to suspend, revise, or revoke any of its policies, procedures,

and/or practices at any time with or without notice. Only the CEO, President or Executive Vice President

may suspend, revise or revoke its policies and procedures. The Vice President of Human Resources is

tasked with the management and updates of the Employee Handbook. Any and all revisions of the

Employee Handbook must be mailed to employees and make the revision available on the Company

website.

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