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KDM Acquisitions, LLC EMPLOYEE HANDBOOK MAY 3, 2017

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Page 1: KDM Acquisitions, LLC · kdm acquisitions, llc ... kdm acquisitions, llc employee handbook may 2017 page 1 taabllee ooff ccoonntteennttss ... aids/hiv status

KDM Acquisitions, LLC

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KDM ACQUISITIONS, LLC EMPLOYEE HANDBOOK

MAY 2017

PAGE 1

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KDM ACQUISITIONS, LLC EMPLOYEE HANDBOOK

MAY 2017

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KDM ACQUISITIONS, LLC EMPLOYEE HANDBOOK

MAY 2017

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Welcome To Our Company! On behalf of your colleagues, we are happy to extend a welcome to KDM Development Corp. We wish you every success during your employment with us. Every employee contributes directly to the company’s growth, and we hope you will take pride in being a member of our team. This handbook was developed to familiarize you with our organization and to outline the policies, programs, and benefits available to eligible employees. As you read it, you will find the answers to many of your questions about employment with KDM. During the course of your employment with us, it may become necessary to make changes to the policies contained in this handbook and the company reserves the right to do so. You will be advised of any changes when they are made. This handbook is not to be construed as an employment contract. The employment relationship is “at will,” which means that the relationship can be ended at any time, for any reason or for no reason, by either the employer or the employee. We are pleased by your decision to work with us. Best wishes for a challenging and productive career with our company. Handbook Purpose This employee handbook is presented as a matter of information and has been prepared to inform employees about the Company’s philosophy, employment practices, policies, and the benefits provided to our valued employees, as well as the conduct expected from them. While this handbook is not intended to be a book of rules and regulations or a contract, it does include some important guidelines which employees should know. Except for the at-will employment provisions, the handbook can be amended at any time. This employee handbook will not answer every question employees may have, nor would the Company want to restrict the normal question and answer interchange among us. It is in our person-to-person conversations that we can better know each other, express our views, and work together in a harmonious relationship. We hope this guide will help employees feel comfortable with us. The Company depends on its employees; their success is our success. Please don’t hesitate to ask questions. Every manager will gladly answer them. We believe employees will enjoy their work and their fellow employees here. We also believe that employees will find the Company a good place to work. No one other than authorized management may alter or modify any of the policies in this employee handbook. No statement or promise by a supervisor, manager, or

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designee is to be interpreted as a change in policy, nor will it constitute an agreement with an employee. Should any provision in this employee handbook be found to be unenforceable and invalid, such a finding does not invalidate the entire employee handbook, but only the subject provision. Nothing in this handbook is intended to infringe upon employee rights under Section Seven of the National Labor Relations Act (NLRA) or be incompatible with the NLRA. We ask that employees read this guide carefully, become familiar with the Company and our policies, and refer to it whenever questions arise.

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KDM ACQUISITIONS, LLC EMPLOYEE HANDBOOK

MAY 2017

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EEMMPPLLOOYYMMEENNTT Equal Employment It is the policy of the Company to provide equal employment opportunities to all qualified individuals and to administer all aspects and conditions of employment without regard to the following:

Race

Color

Age

Sex

Sexual orientation

Gender

Gender identity

Religion

National origin

Pregnancy

Physical or mental disability

AIDS/HIV Status

Military or veteran status

Citizenship and/or immigration status

Genetic information, including family medical history

Height or weight

Marital status

Domestic violence or stalking victim status

Legal use of consumable products outside of work hours

Legal recreational activities outside of work hours

Political activities

Child or spousal support withholding

Wage garnishment for consumer debt

Membership in a volunteer emergency responder organization

Wearing a depiction of the American flag or displaying an American flag at the

employee’s workstation

Non-conviction arrest records, unless pending

Exercise of civil rights

Familial status

Past workers’ compensation claims

Retaliation under the Whistleblower’s Act

Any other protected class, in accordance with applicable federal, state, and local

laws

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The Company takes allegations of discrimination, intimidation, harassment and retaliation very seriously and will promptly conduct an investigation when warranted. Equal employment opportunity includes, but is not limited to, employment, training, promotion, demotion, transfer, leaves of absence and termination. Background Checks Prior to making an offer of employment, the Company may conduct a job-related background check. A comprehensive background check may consist of prior employment verification, professional reference checks, education confirmation, and/or criminal record and credit checks, as permitted by law. Third-party services may be hired to perform these checks. All offers of employment and continued employment are contingent upon a satisfactory background check. At-Will Notice Employees are not hired for any definite or specified period of time even though employee wages are paid regularly. Employees are at-will with the Company and their employment can be terminated at any time, with or without cause and with or without prior notice. Company policy requires all employees to be hired at-will and this policy cannot be changed by any oral modifications. There have been no implied or verbal agreements or promises to an employee that they will be discharged only under certain circumstances or after certain procedures are followed. There is no implied employment contract created by this handbook or any other Company document or written or verbal statement or policy. Anniversary Date & Seniority The employee’s date of hire is their official employment anniversary date. Seniority is the length of continuous service commencing on the date of hire at the Company. Should employees leave the Company’s employment and subsequently be rehired, previously accrued seniority will be forfeited. Seniority will commence on the date of rehire. Seniority does not accrue during leaves of absence without pay or leaves of absence that exceed 30 calendar days, except for paid vacations. Immigration Law Compliance All individuals hired by the Company will be required to establish and certify their identity and right to work in the United States. Each individual employed by the Company will be required to produce, within one day, proof of their identity and eligibility to work in the United States. Employees will be required to complete a Form I-9 for this purpose. Introductory Period The employee’s first 90 days of employment with the Company are considered an introductory period. This introductory period will be a time for getting to know fellow employees, managers and the tasks involved in the position, as well as becoming

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MAY 2017

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familiar with the Company’s products and services. The supervisor or manager will work closely with each employee to help them understand the needs and processes of their job. This introductory period is a try-out time for the employee and the Company. During this introductory period, the Company will evaluate employees’ suitability for employment and employees can evaluate the Company as well. At any time during this first 90 days, employees may resign. If, during this period, employee work habits, attitude, attendance, performance or other relevant factors do not measure up to our standards, the Company may terminate employment. At the end of the introductory period, the supervisor or manager will discuss each employee’s job performance with them. During the course of the discussion, employees are encouraged to give their comments and ideas as well. Completion of the introductory period does not guarantee continued employment for any specified period of time, nor does it require that an employee be discharged only for cause. Completion of the introductory period also does not imply that employees now have a contract of employment with the Company, other than at-will. Successful completion of the introductory period does not alter the at-will employment relationship. A former employee who has been rehired after a separation from the Company of more than one year is considered an introductory employee during their first 90 days following rehire. Employment Categories It is the company’s intent to define employment classifications clearly so that each employee understands his/her employment status and benefit eligibility. Every position is designated as exempt or nonexempt pursuant to federal and state wage and hour laws. Nonexempt employees are entitled to overtime pay under the specific provisions of these laws. Exempt employees are excluded from such overtime pay requirements. KDM Development Corporation has established the following employment categories: Full-time regular: Employees who regularly work at least 40

hours per week Part-time regular: Employees who regularly work fewer than

40 hours per week

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KDM ACQUISITIONS, LLC EMPLOYEE HANDBOOK

MAY 2017

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Seasonal: Employees who may work on a full- or part- time basis for a specific period of time not to exceed six consecutive months

Employee Confidentiality The services we provide, as well as the listing of our clients, are confidential. Releasing information regarding clients is prohibited. A breach of confidentiality is a violation of company policy and could result in disciplinary action, up to and including termination of employment. All business records are company property. Removing company records from the company premises without prior approval of management or giving company records to any former employee or nonemployee is a serious breach of company policy and will result in termination. Employee References The Company makes strict provisions regarding information provided to people outside the Company for current and former employees. This information is restricted to the employment dates and positions held in the Company for that person. This is done to protect the Company and its employees. This information will only be released by authorized management. Job Vacancies, Postings & Transfers It is the policy of the Company to promote qualified individuals from within rather than to select persons from outside the organization to fill vacancies in established positions or to fill newly created positions. When job openings occur, the Company will post those openings in order to provide Company employees the opportunity to submit their applications, at its discretion. Management reserves its right to place employees where, and in whatever jobs it deems necessary. All job transfers, job changes, reassignments, promotions or lateral transfers are solely decided by the Company. Employment of Relatives The Company does not have a general prohibition against hiring relatives. However, a few restrictions have been established to help prevent problems of harassment, safety, security, supervision and morale. Close family members generally may not be hired or transferred into positions where they have access to sensitive information regarding a close family member, or if there is

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MAY 2017

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an actual or apparent conflict of interest (including but not limited to establishing an immediate supervisor/employee relationship). These restrictions apply to the following degrees of relationships, whether established by blood, marriage, or other legal action: spouse, domestic partner (including parties to a civil union), child, step-child, parent, step-parent, sibling, grandparent, grandchild, parent-in-law, son-in-law, daughter-in-law, sister-in-law, brother-in-law, aunt, uncle, nephew, niece, cousin, or relations of the same degree of a domestic partner. This policy also applies to romantic relationships. If marriage or other action creates these kinds of relationships, one of the employees affected must give up that position by the end of the fiscal year or within six months from the date the relationship was established (whichever is the greater period). The employees will be permitted to determine which of them will resign. If the employees cannot make a decision, the Company will decide who will remain in the position. At the sole discretion of the Company, either or both of the employees may be allowed to transfer to other positions within the Company.

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KDM ACQUISITIONS, LLC EMPLOYEE HANDBOOK

MAY 2017

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CCOONNDDUUCCTT AANNDD BBEEHHAAVVIIOORR Employee Conduct and Work Rules Reasonable rules of conduct are necessary for the orderly, efficient, and safe operation of business. The list below is meant to serve as a guideline for identifying conduct that will result in disciplinary action. It should be noted that many of these standards of conduct are clarified in greater detail in the appropriate section of this employee handbook. This list is not intended to be all inclusive. Management reserves the right to modify work rules and regulations or to establish different or additional rules or regulations as it deems appropriate and necessary at any time. The following conduct may result in immediate discharge:

1. Disclosing or making available to unauthorized persons any confidential or proprietary information

2. Rude, abusive, or obscene language or conduct on company property 3. Fighting or disorderly conduct 4. Gambling on company premises

5. Harassing, interfering with, or refusing to cooperate with coworkers in the performance of their duties

6. Tampering, altering, or falsifying time records, or recording time on another employee’s time card

7. Acts of dishonesty or theft 8. Damaging machinery or equipment, wasting materials, or defacing

company property 9. Insubordination or refusal to follow a supervisor’s instructions or to

perform assigned work 10. Failure to adhere to company policies regarding harassment, alcohol and

drug abuse, smoking, and safety 11. Actions that result in complaints from customers, suppliers, or

manufacturers and that affect the company’s reputation or business.

The following conduct will result in disciplinary action, up to and including immediate termination, depending on the seriousness of the offense under the facts and circumstances as determined by management: 1. Repeated absences or tardiness 2. Failure to follow work rules or procedures 3. Failure to complete assigned work in a timely manner 4. Wasting time, loafing, loitering 5. Leaving the work area during working hours without permission 6. Negligence or carelessness

7. Unauthorized or improper use of property or machinery, including company telephones

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MAY 2017

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8. Abuse of break or meal period privileges 9. Refusal to accept assigned overtime 10. Unsatisfactory work performance Depending on the nature of an offense, discussions will often be held between the supervisor and the employee in order to give the employee an opportunity to correct the situation before it becomes necessary for management to issue a written warning. These discussions will be documented and become part of the employee’s record. A written warning notice becomes part of an employee’s record and will be taken into consideration when evaluating an employee’s performance for purposes of promotion, transfer, future disciplinary action, and continued employment. Other Employment Employees are expected to devote their primary work efforts to this company’s business. Therefore, an employee must refrain from engaging in other employment that may prove to be in conflict with the interests of KDM Development Corporation. Outside employment that may have a detrimental effect on our business by reason of association, or outside employment that may have an adverse effect on an employee’s performance at KDM Development Corporation is also prohibited. Policy against Sexual Harassment General KDM Development Corporation is committed to maintaining a work environment that is free of discrimination and harassment based on a person’s race, color, religion, sex, national origin, age, disability, military service/leave, or any other state protected class, consistent with applicable laws. All employees should respect the rights, opinions, and beliefs of others. Harassment of any person because of race, color, religion, sex, national origin, age, disability, military service/leave, or any other state protected class is strictly prohibited, whether directed at an employee, vendor, or customer. Any such harassment is prohibited by this policy whether or not it also violates the equal employment opportunity laws. This policy applies to all employees, officers, and directors of KDM Development Corporation, up to and including its president and board of directors. Sexual Harassment No one may threaten or imply that an employee’s submission to or rejection of sexual advances will in any way influence any decision about that employee’s employment, advancement, duties, compensation, or other terms or conditions of employment. No one may take any personnel action based on an employee’s submission to or rejection of sexual advances.

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MAY 2017

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No one may subject another employee to any unwelcome conduct of a sexual nature. This includes both unwelcome physical conduct, such as touching, blocking, staring, making sexual gestures, and making or displaying sexual drawings or photographs, and unwelcome verbal conduct, such as sexual propositions, slurs, insults, jokes, and other sexual comments. An employee’s conduct will be considered unwelcome and in violation of this policy when the employee knows or should know it is unwelcome to the person subjected to it. Other Harassment No one may harass anyone because of that race, color, religion, sex, national origin, age, disability, military service/leave, or any other state protected class. Examples of conduct prohibited by this policy include using racial and ethnic slurs or offensive stereotypes and making jokes about these characteristics. Making Complaints and Reporting Violations If you are the victim of harassment, you are requested and encouraged to make a complaint to KDM Development Corporation. You are not required to complain first to the person who is harassing you. If you prefer, you may complain directly to your immediate supervisor, the supervisor of the harasser, or the Senior Management Team. Similarly, if you observe harassment of another employee, you are requested and encouraged to report this to one of the persons described above. No reprisal, retaliation, or other adverse action will be taken against any employee for making a good faith complaint or report of harassment, or for assisting in good faith in the investigation of any such complaint or report. Any suspected retaliation or intimidation should be reported immediately to one of the persons described above. Investigation of Complaints and Reports Any complaint or report of a violation of this policy will promptly and thoroughly be investigated. A thorough investigation can take several weeks in some cases. You may, at any time, ask the person you complained or reported to about the status of the investigation. Penalties for Violations KDM Development Corporation will take prompt disciplinary and remedial action if its investigation shows a violation of this policy. Depending on the circumstances, the disciplinary action may range from a warning to a discharge. A complaint or report that this policy has been violated is a serious matter. Dishonest complaints or reports are also against our policy, and KDM Development Corporation will take appropriate disciplinary action if its investigation shows that deliberately dishonest and bad faith accusations have been made.

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Additional Information If you have any questions about this policy, please contact the Office Manager at Corporate for additional information. If you have other questions or concerns about discrimination or harassment, you may ask the Office Manager at Corporate. Anti-Bullying In addition to the Company’s anti-harassment policy, the Company believes it necessary to delineate a policy regarding workplace bullying, as such bullying has numerous negative effects on both individual employees and the Company as a whole. Workplace bullying may cause the loss of trained and talented employees, reduce productivity and morale, and create legal risks. The Company believes all employees should be able to work in an environment free of bullying and abusive conduct. Workplace bullying refers to repeated, unreasonable actions of individuals (or a group) directed towards an employee (or a group of employees), which are intended to intimidate, degrade, humiliate or undermine; or which create a risk to the health or safety of the employee(s). Some examples of workplace bullying include repeated acts such as:

Unwarranted or invalid criticism

Blame without factual justification

Being treated differently than the rest of the employees in a work group

Being the target of cursing or disrespectful language

Exclusion or social isolation

Being the target of shouting or other behavior intended to humiliate the employee

Excessive “prank” jokes or teasing of an employee The Company considers workplace bullying unacceptable and will not tolerate it under any circumstances. Supervisors and managers are to assume the responsibility to ensure employees are not bullied. Any employee who bullies a co-worker will be subject to disciplinary action, up to and including termination of employment. The Company encourages all employees to report workplace bullying to a supervisor or manager with whom employees are comfortable speaking, or directly to their supervisor, manager or designee. All complaints of workplace bullying will be treated seriously and investigated promptly. In the investigation process, the Company will attempt to maintain confidentiality to the fullest extent possible. It is a violation of Company policy to retaliate or otherwise victimize an employee who makes a complaint or a witness who serves in the investigation of the workplace bullying allegation.

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Open Door Communications We encourage all employees to bring any problems or complaints to our attention immediately. The procedure for doing this is as follows: 1. Discuss the situation first with your immediate supervisor. 2. If you have a problem with your immediate supervisor or if you do not

receive a satisfactory response, bring it to the attention of the Senior Management Team at Corporate.

Your success on the job is a prime objective of KDM Development Corporation, and we look to you for help in carrying out company policies and procedures. If you have a problem or question, we trust you will give us the opportunity to resolve it in the best interest of all concerned. Corrective Action A high level of job performance is expected of each and every employee. In the event that an employee’s job performance does not meet the standards established for the position, employees should seek assistance from their supervisor or manager to attain an acceptable level of performance. If employees fail to respond to or fail to make positive efforts toward improvement, corrective action may ensue, including termination of employment. It is the policy of the Company to regard discipline as an instrument for developing total job performance rather than as punishment. Corrective action is one tool the Company may select to enhance job performance. The Company is not required to take any disciplinary action before making an adverse employment decision, including discharge. Corrective action may be in the form of a written or oral reprimand, notice(s) of inadequate job performance, suspension, discharge or in any combination of the above, if the Company so elects. The Company reserves its prerogative to discipline, and the manner and form of discipline, at its sole discretion. If employees violate established Company procedures, guidelines, or exhibit behavior that violates commonly accepted standards of honesty and integrity or creates an appearance of impropriety, the Company may elect to administer disciplinary action.

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CCOOMMPPEENNSSAATTIIOONN Paydays The workweek at KDM Development Corporation extends from Sunday to Saturday. Most employees will be paid on Thursday of each week for hours worked during the previous week. When a payday falls on a holiday, you will be paid on the day before the holiday. Time Sheets Time sheets must be filled out completely each day showing the time you begin work, the time you leave for and return from lunch, and the time you quit work for the day. Be sure to mark any absences and indicate the reason, as this is the record from which you will be paid. Sign your time cards and turn them in to your supervisor at the end of the week for verification and approval. Work Schedules Work schedules may vary throughout the company as staffing needs and operational demands require. As a result there may be differences in starting and ending times and in the total number of hours scheduled each day and week. Your immediate supervisor will advise employees of their individual work schedules. All employees are expected to be at their work stations and ready to begin work at their scheduled times and to return promptly from lunches and breaks. Occasionally, you may be required to work overtime to meet client needs. Working overtime when required is a condition for continued employment, and we expect our employees to be ready and willing to work overtime when requested. You will be paid for any additional hours beyond the basic workweek, in accordance with federal and state laws. Your immediate supervisor reserves the right to require written verification before releasing you from necessary overtime work. All overtime worked must be authorized in advance by your immediate supervisor. Time paid for vacation, holiday, sick or personal leave will not be taken into consideration when calculating overtime. Pay Adjustments, Promotions & Demotions The Company is most interested in providing maximum opportunity for employee advancement within the Company, if advancement opportunities are available. Accordingly, present employees of the Company may be considered for promotions and may be preferred for promotion before any new employees are hired to fill vacancies

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that may arise. Of course, the Company retains sole discretion to determine the factors to be applied in any promotion decision, and the relative weight of the factors. All pay increases are based upon merit and market factors. There may not be an automatic annual cost of living or salary adjustment to reflect current economic conditions. Employees pay also may be adjusted downward. Salary decreases may take place when there is a job restructuring, job duty change, job transfers or adverse business economic conditions. Demotion is a reduction in responsibility, usually accompanied by a reduction in salary. If and when a demotion occurs, employees may maintain their seniority with the Company. Overtime The Company complies with all applicable federal and state laws with regard to payment of overtime work. Non-exempt employees are paid overtime at the rate of one and one-half times the regular rate of pay for all hours worked over forty (40) in a workweek. Employees are required to work overtime when assigned. Any overtime worked must be authorized by a supervisor or manager, in advance. Working unauthorized overtime or the refusal or unavailability to work overtime is not acceptable work performance, and is subject to discipline, including but not limited to termination. General Payroll Deductions The Company is required by law to make certain deductions from all employees’ paychecks. Such deductions include federal, state, and local taxes and court-ordered wage garnishments. Voluntary deductions might include premiums for benefits, retirement plan contributions, and disability insurance. Employees should report improper deductions, which will be promptly investigated. If it is determined that an improper deduction has occurred, employees will be reimbursed for any improper deduction made. Employees should contact their manager with any questions about their paycheck deductions. Exempt Employee Payroll Deductions The Company complies with the salary basis requirements of the Fair Labor Standards Act (FLSA) and does not make improper deductions from the salaries of exempt employees. Exempt employees are those employed in a bona fide executive,

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administrative or professional capacity and who are exempt from the FLSA’s overtime pay requirements. What Deductions Are Permitted? There are certain circumstances where deductions from the salaries of exempt employees are permissible. Such circumstances include:

When an exempt employee is absent from work for one or more full days for personal reasons other than sickness or disability;

When an exempt employee is absent for one or more full days due to sickness or disability if the deduction is made in accordance with a bona fide plan, policy or practice of providing compensation for salary lost due to illness;

To offset amounts received as witness or jury fees, or for military pay; For unpaid disciplinary suspensions of one or more full days imposed in good

faith for workplace conduct rule infractions The Company is not required to pay the full salary in the initial or terminal week of employment; for weeks in which an exempt employee takes unpaid leave under the Family and Medical Leave Act, if applicable; or for penalties imposed in good faith for infraction of safety rules of major significance. In these circumstances, either partial day or full day deductions may be made. What to Do if an Improper Deduction Occurs If you are an exempt employee and believe that an improper deduction has been made to your salary, you should immediately report this information to your direct supervisor, or to the person responsible for payroll processing. Reports of improper deductions will be promptly investigated. If it is determined that an improper deduction has occurred, you will be promptly reimbursed for any improper deduction made. Performance Evaluation Employees will generally receive an appraisal of their job performance upon the completion of one year of employment and annually thereafter. This evaluation may be either written or oral. Such evaluation may not occur exactly on the anniversary date, but thereabout, at the discretion of the supervisor or manager. If in this appraisal employees are given an evaluation sheet or other written document, employees will be required to sign it. An employee’s signature does not necessarily indicate that the employee agrees with all the comments, but merely that the employee has been given the opportunity to examine the evaluation and fully discuss the contents of it with their supervisor or manager. The completed and signed evaluation form will be placed in the employee’s personnel file and the employee will receive a copy of the performance evaluation.

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Because pay increases are based on merit, the performance evaluation is an important element in the merit review. In addition to the formal annual review, informal counseling sessions may be conducted from time to time. Work Assignments In addition to specific duties that come with an individual’s job responsibilities, each job also includes "other duties as assigned." From time to time, employees may be required to perform duties or tasks of a fellow employee who is absent or for a position that is temporarily vacant. Employees will be compensated at their regular rate of pay while performing other assigned duties on a temporary basis. Expense Reimbursement This policy establishes the reimbursement procedures for travel, entertainment, and other business expenses ("business expenses") incurred during the conduct of Company business. It is Company policy to reimburse employees for ordinary, necessary, and reasonable expenses when directly related to the transaction of Company business. Directly related means:

There is the expectation of deriving some current or future benefit for the Company

The employee is actively engaged in a business meeting or activity necessary to the performance of the employee's job duties, or

There is a clear business purpose for entertainment Employees are expected to exercise prudent business judgment regarding expenses covered by this policy. Reimbursement for expenses that are outside the scope of this policy requires the prior written approval of management. The following expenses may be reimbursable under this policy:

Lodging

Travel expenses including airfare, reasonable airline luggage fees, train fare, bus, taxi, and related tips

Business telephone calls

Laundry and/or dry cleaning expenses during trips in excess of 5 days

Car rental

Personal mileage

Tolls

Conference and convention fees

Business entertainment expenses

Parking

Other reasonable and necessary business expenses, not specifically excluded by this policy, and with prior approval

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Employees who utilize personal cars for business travel will be reimbursed at the per mile rate established annually by the Company. The following expenses are not reimbursable under this policy:

Child care costs

Airline club dues

Barber/hairstylist

Toiletries

Traffic fines

In-flight movies or refreshments

Hotel room movies and other forms of personal entertainment

Luggage, briefcases

Alcohol

First class airfare No policy can anticipate every situation that might give rise to legitimate business expenses. Reasonable and necessary expenses not listed above may be incurred. When prior approval is required, managers are responsible for using professional judgment to determine if an unlisted expense is reimbursable under this policy. Credit Cards The Company-issued credit cards are to be used for purchases on behalf of the Company and for any travel expenses incurred while traveling on Company business only. At no time may an employee who is in possession of a Company issued credit card use this card for purchases intended for personal use. The use of the Company issued credit card for anything other than its intended purposes may result in the credit card being revoked and disciplinary action, up to and including termination of employment. All expense reporting guidelines are to be followed for submitting expenses charged to the Company issued credit card. Documentation Requests for reimbursement of business expenses and requests for payment of credit card bills must be submitted on the appropriate form. The Company complies with IRS regulations which require that all business expenses be substantiated with adequate records. This substantiation must include information relating to:

The amount of the expenditure

The time and place of the expenditure

The business purpose of the expenditure

The names and the business relationships of individuals for whom the expenditures were made

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Requests for reimbursement lacking this information will not be processed and will be returned to the originator. Approvals Expense reimbursement forms, together with required documentation, must be submitted to the employee's immediate supervisor for review and signature approval. In the absence of the immediate supervisor, approval from the next higher level of supervision is required. Upper management may approve expense reimbursement if the above mentioned supervisory approvals cannot be obtained due to the supervisors' absences. Once the expense reimbursement has been approved by the employee’s manger it should be submitted for processing no later than 30 days after the expenses occurred. Supervisors approving expense reports are responsible to ensure the following:

Expenses reported are proper and reimbursable under this policy

The expense report has been filled out accurately and with the required documentation

The expenses are reasonable and necessary Advances and Loans The Company does not give salary advances or loans to its employees.

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BBEENNEEFFIITTSS KDM Development Corporation is pleased to provide benefits to eligible employees. Our benefits package has been designed to help protect you and your family from financial loss due to illness, injury, or death, and to help you plan for your retirement. Please check with the Office Manager for additional information about the plans and benefits available and the conditions for your participation. Holidays KDM Development Corporation observes the following holidays and is closed for business on these days: New Year’s Day Labor Day Memorial Day Thanksgiving Day July 4th Christmas Day If a holiday falls on a Saturday, the holiday will be observed on the day before the holiday, if the holiday falls on a Sunday it is observed on the day after. After the completion of 90 days, all full-time regular employees will be paid for designated holidays according to the following guidelines:

1. Holiday pay shall be equivalent to the amount of base pay you normally would have earned on that day.

2. Pay in lieu of holidays will not be granted Vacations KDM Development Corporation recognizes that employees need periods of rest and relaxation, and grants vacation with pay to eligible full-time employees. Vacation days are allocated each year on the anniversary of your hiring, and the number of days is based on length of service on your anniversary date. A vacation day is equal to the number of hours that you normally work in one day; all vacation days must be taken in whole day increments. Employees are eligible for vacation according to the following schedule: Anniversary Vacation Allowance 1 year 5 days 2 years 10 days 5 years 15 days 10 years 20 days Requests for vacation must be submitted to your supervisor as early as possible to ensure proper coverage for work. In case of conflicting requests, your supervisor will exercise his/her discretion in scheduling vacations, taking into consideration the date of your request, the length of your employment, and any other factors he or she deems

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appropriate. There is no compensation paid in lieu of vacation time. Vacation time will not be carried over from one year to the next. Unused vacation will be paid upon resignation of employment provided you give and work out at least two (2) weeks’ notice. Any employee in a management position must give and work out four (4) weeks’ notice in order to be paid for unused vacation. Unused vacation shall also be paid out should you be laid off. Unused vacation will not be paid out if you are discharged for any other reason, state law permitting. Sick Pay KDM Development Corporation provides replacement pay in the event that you are unable to come to work due to sickness or injury. After the completion of 90 days, all full-time regular employees are eligible to receive up to three days of sick pay per year for occasional absence due to illness or injury. Sick days are to be used to accommodate the employee’s own illness or that of an immediate family member. All sick days must be taken in full day increments. In the event of illness, sick time must initially be taken up to and including the maximum amount of sick time accrued. Any time taken in excess of time accrued must be charged to your available vacation time. Any time in excess of sick and vacation time will be considered unpaid leave of absence, and will be granted at the discretion of management based upon business needs. Sick days may be carried over from year to year. Unused sick time will not be paid upon termination or resignation from employment. Bereavement Leave KDM Development Corporation provides employees up to two (2) days of paid bereavement leave to attend the funeral of a member of their immediate family. Immediate family is defined as a parents, spouse/domestic partner, child, sibling, grandparent, parent-¬in-law, and corresponding step-relatives. Employees should notify their supervisors as soon as possible of their need for a leave. They may be required to provide evidence of the need to take bereavement leave. Medical Insurance All full-time regular employees, retirees, and corporate owners and executives are eligible to participate in the medical insurance plan to provide coverage for themselves and their eligible dependents. KDM Development Corporation pays a portion of the cost for coverage, except for retirees, and the rest is deducted from your paycheck. Medical benefits begin after the completion of 90 days of employment with KDM Development Corporation and upon completion of enrollment forms.

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Additional details on the medical insurance plan can be found in descriptive booklets that are available through the Human Resources Department. Dental Coverage A dental benefit plan is available to all full-time regular employees and their families after 90 days of employment and after completion of the enrollment forms. Please check with the Human Resources Department for information regarding coverage and participation. Savings/401K Employee Savings Plan KDM Development Corporation has established a 401(k) Employee Savings Plan as a way for employees to save for retirement and for the future. This plan allows employees to set aside money from their pretax earnings by means of payroll deductions. The money you put into the plan is 100% vested and will earn tax-deferred interest. All employees are eligible to participate in the plan after completing six months of service with KDM Development Corporation, provided they are 21 years of age. The Payroll Department will notify you when you become eligible and will provide you with additional details. This plan, like all 401(k) plans, is regulated by the IRS with regard to contribution limits, individual IRA’s, etc. Please see our plan administrator if you have any questions about the laws and regulations governing this plan. KDM Development Corporation pays all costs of administering the plan. Continuation of Coverage In certain instances, most employers who sponsor group medical plans are required by federal law to offer employees and their families group rates for temporary extension of medical coverage (called continuation coverage or COBRA), where coverage under the plan would otherwise end. At the time you enroll in the plan and again when coverage would normally cease, KDM Development Corporation will provide additional information regarding continuation coverage. If you would like additional information regarding COBRA regulations, please direct your questions to the Human Resources Department. Family Medical Leave The federal Family & Medical Leave Act of 1993 (FMLA) as amended in 2008 and 2013 requires companies with 50 or more employees to provide eligible employees with unpaid leave. The following provides a general overview of two types of leave available, including the basic 12-week leave entitlement (Basic FMLA Leave), as well as the military family leave entitlements (Military Family Leave) described in this policy. Employees with any further questions about their eligibility for FMLA leave should contact Human Resources for more information.

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Employees are eligible for FMLA leave if they:

1. Have worked for the Company for at least 12 months in the last seven years; 2. Have worked at least 1,250 hours for the Company during the 12 calendar

months immediately preceding the request for leave; and 3. Are employed at a work site that has 50 or more employees within a 75-mile

radius. Basic FMLA Leave Employees who meet the eligibility requirements described above are eligible to take up to 12 weeks of unpaid leave during any 12-month period for one of the following reasons:

1. To care for the employee’s son or daughter during the first 12 months following birth;

2. To care for a child during the first 12 months following placement with the employee for adoption or foster care;

3. To care for a spouse, son, daughter, or parent (“covered relation”) with a serious health condition;

4. For incapacity due to the employee’s pregnancy, prenatal medical or child birth; or

5. Because of the employee’s own serious health condition that renders the employee unable to perform an essential function of their position.

Military Family Leave There are two types of Military Family Leave available: Qualifying exigency leave. Employees meeting the eligibility requirements described above may be entitled to use up to 12 weeks of their Basic FMLA Leave entitlement to address certain qualifying exigencies. Leave may be used if the employee’s spouse, son, or daughter is on active duty or called to active duty status in the National Guard or Reserves in support of a contingency operation or deployment overseas with the armed forces. Qualifying exigencies may include:

Short-notice deployment (up to seven days of leave)

Attending certain military events

Arranging for alternative childcare

Addressing certain financial and legal arrangements

Periods of rest and recuperation for the service member (up to 15 days of leave)

Parental care

Attending certain counseling sessions

Attending post-deployment activities (available for up to 90 days after the termination of the covered service member’s active duty status)

Other activities arising out of the service member’s active duty or call to active duty and agreed upon by the Company and the employee

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Leave to care for a covered service member. There is also a special leave entitlement that permits employees who meet the eligibility requirements for FMLA leave to take up to 26 weeks of leave to care for a covered service member during a single 12-month period. A covered service member is a current member of the Armed Forces, including a member of the National Guard or Reserves, who has been rendered medically unfit to perform their duties due to a serious injury or illness incurred in the line of duty or while on active duty, and/or pre-existing injuries or illnesses that were aggravated in the line of duty, that may render the service member medically unfit to perform their duties for which the service member is undergoing medical treatment, recuperation, or therapy; or is in outpatient status; or is on the temporary disability retired list. In addition, leave will be provided to eligible family members of certain veterans receiving medical treatment, recuperation, or therapy if the veteran was a member of the Armed Forces at any time during the five year period preceding the date of the medical treatment, recuperation, or therapy. Notice Employees taking FMLA should provide as much notice as practicable. When the need for leave is foreseeable, 30 days’ advance notice is requested. Employees should make effort to schedule FMLA leave in the least disruptive manner so as not to affect operations. An employee who is taking FMLA leave may be required to report periodically to the Company regarding their status and intent to return to work. An employee who fails to return to work at the expiration of the leave without an approved extension will be considered to have resigned. After the leave, the employee must be restored to the same or essentially-same position held before the leave. Health Care Benefits If applicable, health care benefits will be maintained during the leave. The employee is responsible for their portion of the medical insurance premium cost, if any. Failure to pay the employee portion of the health insurance premiums in advance may result in the termination of coverage. If eligible, the employee will receive notification of continuation of benefits. The Company reserves the right to seek reimbursement from the employee for the medical insurance premiums paid by the Company on behalf of the employee while the employee was on FMLA leave if the employee fails to return from FMLA leave for reasons other than the continuation, recurrence or onset of a serious health condition of the employee or the employee’s family member, which would otherwise entitle the employee to leave under the FMLA or other circumstances beyond the employee’s control. Temporary Disability Leave The Company recognizes that a temporary disability may preclude an employee’s attendance at work. In such cases, the Company does not have a predetermined

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specified period of time in which this unpaid leave is granted. Rather, the Company will attempt to reasonably accommodate the needs of the employee as well as the needs of the Company. If a leave is granted, any extensions will be subject to the same considerations. Employees that request a temporary disability leave must do so in writing. That request should be accompanied by a doctor's statement identifying the temporary disability, the date and the estimated date of return and, where appropriate, diagnosis and prognosis. At any time during a temporary leave, the supervisor or manager may request that employees furnish a written statement of their health. Prior to returning to employment with the Company, employees will be required to submit written medical certification of their ability to work, including any restrictions. Upon returning to work, if employees qualify, they will be reinstated to their former position or one that is substantially the same, depending upon the availability of any position at that time. The Company observes and complies with all federal and state medical leave regulations that pertain to our employees. This includes federal and any state leave provisions that might apply. Any unused accrued sick leave shall be used prior to the effective date of the temporary disability leave, except for pregnancy disability leave. Employees may request payment of any accrued but unused paid vacation time prior to the effective date of the temporary disability leave. Jury Duty Leave Absence for the purpose of serving on a jury will be considered an excused absence. The company will follow state and federal guidelines regarding payment of wages while the employee is out on jury duty. You are required to return to work for the remainder of any day that you are not required to serve. KDM Development Corporation will require that you provide proof of service. Witness Leave If an employee is absent from work to serve as a witness or to appear as the victim in a criminal case, the employee will be granted leave without pay for such time as it is necessary to comply with the request. The Company may require proof of the need for leave. Voting Leave If an employee does not otherwise have three consecutive, nonworking hours to vote when polls are open because of their scheduled work hours, then the employee will be given up to three hours to vote in any state or federal election. The three hours shall be compensated at the employee’s regular rate of pay. Employees must apply for leave in writing before the day of the election. The Company may designate hours for employees to take leave. Exempt employees will be paid in accordance with the Fair Labor

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Standards Act (FLSA) requirements. Free Lot Rent Free lot rent may be offered to an employee as part of his/her compensation package. In the event of termination of employment, free lot rent will terminate on the last day of the month of such termination

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HEALTH, SAFETY AND SECURITY

Smoking Policy Our company strives to provide a healthful, safe, and comfortable working environment for all employees and visitors. Smoking by employees and visitors is therefore prohibited throughout all company buildings. Employees and visitors who wish to smoke must leave the building and use only designated areas outside which have appropriate smoking waste disposal receptacles. Drug-Free Workplace Policy Purpose and Goal KDM Development Corporation is committed to protecting the safety, health and well-being of all employees and other individuals in our workplace. We recognize that alcohol abuse and drug use pose a significant threat to our goals. We have established a drug-free workplace program that balances our respect for individuals with the need to maintain an alcohol and drug-free environment.

This organization encourages employees to voluntarily seek help with drug and alcohol problems.

Covered Workers Any individual who conducts business for the organization, is applying for a position or is conducting business on the organization's property is covered by our drug-free workplace policy. Our policy includes, but is not limited to managers, full-time employees, part-time employees and applicants.

Applicability Our drug-free workplace policy is intended to apply whenever anyone is representing or conducting business for the organization. Therefore, this policy applies during all working hours and whenever conducting business or representing the organization.

Prohibited Behavior It is a violation of our drug-free workplace policy to use, possess, sell, trade, and/or offer for sale alcohol, illegal drugs or intoxicants. Prescription drugs may only be brought on company property and used by the person to whom they are prescribed. Such drugs must be used only in the manner, combination, and quantity prescribed.

Drug Testing To ensure the accuracy and fairness of our testing program, all testing will be conducted according to Substance Abuse and Mental Health Services Administration (SAMHSA) guidelines where applicable and will include a screening test; a confirmation test; the opportunity for a split sample; review by a Medical Review Officer, including the opportunity for employees who test positive to provide a legitimate medical explanation, such as a physician's prescription, for the positive result; and a documented chain of custody.

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All drug-testing information will be maintained in separate confidential records.

Each employee, as a condition of employment, may be required to participate in random, post-accident, reasonable suspicion and follow-up testing upon selection or request of management.

The substances that will be tested for are: Amphetamines, Cannabinoids (THC), Cocaine, Opiates, Phencyclidine (PCP) and Alcohol.

Testing for the presence of alcohol will be conducted by analysis of breath, saliva and blood.

Testing for the presence of the metabolites of drugs will be conducted by the analysis of urine, blood, hair, saliva and sweat.

Any employee who tests positive will be terminated immediately.

An employee will be subject to the same consequences of a positive test if he/she refuses the screening or the test, adulterates or dilutes the specimen, substitutes the specimen with that from another person or sends an imposter, will not sign the required forms or refuses to cooperate in the testing process in such a way that prevents completion of the test.

Consequences One of the goals of our drug-free workplace program is to encourage employees to voluntarily seek help with alcohol and/or drug problems. If, however, an individual violates the policy, the consequences are serious.

In the case of applicants, if he or she violates the drug-free workplace policy, the offer of employment can be withdrawn. The applicant may not reapply.

If an employee violates the policy, he or she will be terminated from employment.

Assistance KDM Development Corporation recognizes that alcohol and drug abuse and addiction are treatable illnesses. We also realize that early intervention and support improve the success of rehabilitation. To support our employees, our drug-free workplace policy:

Encourages employees to seek help if they are concerned that they or their family members may have a drug and/or alcohol problem; Encourages employees to utilize the services of qualified professionals in the community to assess the seriousness of suspected drug or alcohol problems and identify appropriate sources of help; Offers all employees and their family member’s assistance with alcohol and drug problems through the Employee Assistance Program (EAP); and Allows the use of accrued paid leave while seeking treatment for alcohol and other drug problems.

Treatment for alcoholism and/or other drug use disorders may be covered by the employee benefit plan. However, the ultimate financial responsibility for recommended treatment belongs to the employee.

Confidentiality

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All information received by the organization through the drug-free workplace program is confidential communication. Access to this information is limited to those who have a legitimate need to know in compliance with relevant laws and management policies.

Shared Responsibility A safe and productive drug-free workplace is achieved through cooperation and shared responsibility. Both employees and management have important roles to play.

All employees are required to not report to work or be subject to duty while their ability to perform job duties is impaired due to on- or off-duty use of alcohol or other drugs.

In addition, employees are encouraged to:

Be concerned about working in a safe environment;

Support fellow workers in seeking help;

Use the Employee Assistance Program; and

Report dangerous behavior to their supervisor.

It is the supervisor's responsibility to:

Inform employees of the drug-free workplace policy; Observe employee performance; Investigate reports of dangerous practices; Document negative changes and problems in performance; Counsel employees as to expected performance improvement; and Clearly state consequences of policy violations.

Failure to adhere to these policies may result in immediate discharge. Reasonable Accommodations It is the policy of the Company to comply with all the relevant and applicable provisions of the federal Americans with Disabilities Act (ADA) and Pregnancy Discrimination Act (PDA), as well as state and local laws concerning the hiring and employment of individuals with temporary and ongoing disabilities. Pregnant workers may also have impairments related to their pregnancies that qualify under the ADA. The Company will not discriminate against any qualified employee or job applicant because of a person’s physical or mental disability with respect to any terms, privileges or conditions of employment, including, but not limited to hiring, advancement, discharge, compensation and training. Employees who become disabled should notify their supervisor or manager if the conditions of the disability impair their ability to perform the essential functions of their position. Where necessary and feasible, reasonable accommodations will be made for qualified disabled employees to perform the essential functions of the job in question, as long as the accommodation does not cause the Company undue hardship. The Company will also make reasonable accommodations for employees who have work-related limitations stemming from pregnancy, childbirth or a related medical condition. This may include temporary transfer to a less strenuous or less hazardous position, if an

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employee so requests upon the advice of their health care provider, as long as the accommodation does not cause the Company undue hardship. All employees are required to comply with safety standards. Applicants who pose a direct threat to the health or safety of other individuals in the workplace, which cannot be eliminated by reasonable accommodation, will not be hired. Current employees who pose a direct threat to the health of safety of the other individuals in the workplace will be placed on appropriate leave until a decision has been made by management in regard to the employee’s immediate employment situation. Safety Data Sheets You have the right to know about any hazardous substances that you might use or encounter on the job. Safety Data Sheets (SDS) for each potentially hazardous chemical used in our workplace can be found in the park office. If you are unable to locate a SDS for a particular substance, please ask your immediate supervisor for further information. Safety Every accident or injury that occurs on the job, however minor, must be reported to your immediate supervisor at once. Safety is everyone’s responsibility. Please take precautions to use materials and equipment with care and do your part to keep the work site free from hazards. In addition to causing personal injury, accidents result in downtime and reduced profitability. All work areas on the job site are to be kept clear of any debris. Workers Compensation You are protected by the Workers’ Compensation Act of the state in which you work. If you suffer a work-related injury or illness, you are eligible for income replacement and for payment of medical costs incurred as a result. KDM Development Corporation pays the full premium for this coverage as part of our employee benefits program. While you are out on a Workers’ Compensation leave, it is your responsibility to make arrangements with the Payroll Department to continue paying your share of the medical insurance premium. The company will continue to pay its portion of your medical insurance coverage for a period of 4 weeks while you are out on leave. At the end of that time, you will be given the opportunity to continue your medical insurance coverage under the COBRA regulations.

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Violence in the Workplace KDM Development Corporation is committed to providing a workplace for our employees that is healthful and safe. The Company will not tolerate acts or threatened acts of violence by employees or non-employees in our facilities or on our property. Employees and non-employees are prohibited from bringing guns or other weapons onto our property, including, but not limited to, weapons in vehicles in the parking lots. Violations of this policy will subject employees to discipline up to and including termination. If a non-employee enters our work place carrying a weapon the authorities will be called immediately. Other examples of prohibited conduct include, but are not limited to, striking or attacking another employee or verbally or physically threatening an employee with bodily harm. Any employee who has been a victim of workplace violence or is aware of such conduct between other employees should immediately report it to their immediate supervisor or the Senior Management Team at Corporate. All reports will be promptly investigated and appropriate action will be taken. Employees will not be subject to discipline or retaliation of any form by management or fellow employees for reporting actual or potentially violent situations. Driving Safety The safety and well-being of our employees is of critical importance to the Company. We therefore each have a responsibility to not only protect ourselves when on the road but also should do our part to protect those around us. Employees that are required to drive on Company business will be expected to consistently apply follow all the safety procedures below.

1. All employees are expected to wear seat belts at all time while in a moving vehicle being used for Company business, whether they are the driver or a passenger.

2. Use of handheld devices, whether personal or Company-owned, while behind the wheel of a moving vehicle is strictly prohibited. This includes the use for making or receiving phone calls, sending or receiving text messages or e-mails, and downloading information from the web. If an employee needs to engage in any of these activities while driving, they must pull over to safe location and stop the vehicle prior to using any device.

3. Employees are required to turn off cell phones or put them on vibrate before starting their car. Employees may consider changing their voicemail message to indicate that they are unavailable to talk, as they are driving. Employees are permitted and encouraged to communicate to clients, associates, and business partners of the policy as an explanation as to why calls may not be returned immediately.

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4. Although use of cell phones under any circumstances is strongly discouraged while driving, the use of hands-free technology may be warranted in emergency circumstances only.

5. The use of other handheld electronic devices, such as iPads, iPods, laptops, electronic readers, and the like are strictly prohibited while driving a vehicle on Company business.

6. Engaging in other distracting activities including, but not limited to, eating, putting on makeup, reading, or changing radio stations or music is also strongly discouraged while driving, even when in slow-moving traffic.

7. The use of alcohol, drugs, or other substances including certain over-the-counter cold or allergy medications that in any way impair driving ability is prohibited.

8. All employees are expected to follow all driving laws and safety rules, such as adherence to posted speed limits and directional signs, use of turn signals, and avoidance of confrontational or offensive behavior while driving.

9. Employees should never allow anyone to ride in any part of the vehicle not specifically intended for passenger use and/or any seat that does not include a working seat belt.

10. Employees must promptly report any accidents to local law enforcement as well as to the Company in accordance with established procedures.

11. Employees are also required to report any moving or parking violations received while driving on Company business and/or in Company vehicles.

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WORKPLACE GUIDELINES

Off-the-Clock Work Non-exempt employees must accurately record all time worked, regardless of when and where the work is performed. Off-the-clock work (engaging in work assignments or duties that are not reported as time worked) is prohibited. No member of management may request, require, or authorize non-exempt employees to perform work without compensation. This includes checking email on personal devices after work hours. Any possible violations should be reported promptly to a supervisor or member of management. Failure to record all time worked is grounds for discipline up to and including termination. Meal Periods Employees are entitled to take a non-compensated meal period each workday of 30 minutes. Employees will be completely relieved of all job duties and free to leave the premises during this time. The management team will inform employees as to their break schedule. There must be at least one employee working during this period. Any variation in the normal schedule must be approved in advance. Lactation Accommodation The Company provides a supportive environment to enable breastfeeding employees to express their milk during work hours (for up to three years following the birth of a child). Accommodations under this policy include a place, other than a bathroom, that is shielded from view and free from intrusion from co-workers and the public which may be used by an employee to express breast milk. Discrimination and harassment of breastfeeding mothers in any form is unacceptable and will not be tolerated. Attendance and Punctuality In order to serve our customers effectively, it is important that you come to work on time each day. In the event that illness or injury prevents you from reporting to work as scheduled, it is your responsibility to notify your immediate supervisor personally each day before the start of your scheduled shift. If you are going to be late, you must personally notify your immediate supervisor before your scheduled starting time. State the reason for your lateness and your expected time of arrival. Failure to call in as required is a violation of company policy and the absence or tardiness will be considered unexcused, which may result in disciplinary action up to and including termination. If your supervisor is unavailable, you must contact the Office Manager directly.

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In the case of repeated absences or tardiness, you may be required to submit evidence verifying the reason for your absence. Failure to provide the requested substantiation will result in termination. An absence of two or more consecutive workdays without notifying KDM Development Corporation will be considered a voluntary quit. Personal Appearance Each employee is expected to dress appropriately for the job. Your supervisor will offer guidance as to the proper attire for your job and may establish special requirements for reasons of safety or public contact. Failure to observe standards of dress will result in disciplinary action. If you feel that dress requirements for your department are unreasonable, you may use the company’s Open Door policy to communicate your feelings to management. Conflict Of Interest It is KDM Development Corporation’s policy that employees shall not have any direct or indirect financial interest in or personal business relationships with any firm or person that does business with KDM Development Corporation, nor shall employees engage in any other activity that would conflict with the interests of KDM Development Corporation. Your Personnel File You are responsible for notifying your immediate supervisor of any changes in name, address, telephone number, marital status, number of dependents, or any other information in your employment records. Incomplete or outdated information may result in incorrect taxes being withheld from your paycheck, interrupted benefits for you and your family, and difficulty in notifying the appropriate person in the event of an emergency. Personnel files are the property of the company, and access to the information they contain is restricted. Only those officials and representatives of the company who have a legitimate reason to review information in a file are permitted to do so. With proper notice an employee may review his or her file but only in the company’s offices and in the presence of the individual appointed by the company to maintain the file. Outside Activities Employees may engage in outside employment or personal educational activities during non-working hours, provided that such activities do not interfere with their job performance or constitute a conflict of interest. Prior to accepting outside employment, employees are to notify their supervisor or manager in writing. The notice must contain the name of the potential company, the title and nature of the position, the number of working hours per week, and the time of scheduled work hours. If the position

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constitutes a conflict of interest or interferes with the employee’s job, at any time, employees may be required to terminate such activity. Reporting Irregularities It is the responsibility of each employee of the Company to immediately report any and all irregularities indicating actual or suspected existence of loss, fraud, embezzlement, or similar impairment of Company funds or property and suspicious persons or activity. If an employee’s actual or constructive knowledge of any irregularity exists and the employee does not report it to their supervisor or manager, that employee has engaged in unacceptable job performance and may be subject to corrective action, up to and including termination. Inspections & Searches Any items taken out of or off Company premises or property (or property controlled by the Company) are subject to inspection/search unless prohibited by state law. Employee desks, workstations, work areas, computer terminals, memory, files, voice mail, etc. are subject to inspection/search at any time. The Company may monitor any telephone conversation employees have on Company owned or controlled equipment, premises, or property. Any inspection/search conducted by the Company or its designees may occur at any time, with or without notice. Employees are prohibited from placing any passwords or restrictors on any document, computer, or computer software without the prior permission of their supervisor or manager. Any password or restrictor must be revealed to and maintained by a second authorized source. Removing, changing, deleting, or erasing any Company information without the appropriate authorization is strictly prohibited. Social Media The Company understands that social media can be a fun and rewarding way to share an employee’s life and opinions with family, friends, and co-workers around the world. However, use of social media also presents certain risks and carries with it certain responsibilities. To assist employees in making responsible decisions about their use of social media, we have established these guidelines for appropriate use of social media. This policy applies to all employees of the Company. Guidelines In the rapidly expanding world of electronic communication, social media can mean many things. Social media includes all means of communicating or posting information or content of any sort on the internet, including to an employee’s own or someone else’s web log or blog, journal or diary, personal web site, social networking or affinity web site, web bulletin board, or a chat room, whether or not associated or affiliated with the Company, as well as any other form of electronic communication.

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The same principles and guidelines found in Company policies apply to employee activities online. Ultimately, employees are solely responsible for what they post online. Before creating online content, employees should consider some of the risks and rewards that are involved. Employees should keep in mind that any conduct that adversely affects an employee’s job performance, the performance of fellow employees, or otherwise adversely affects members, customers, suppliers, people who work on behalf of the Company, or the Company’s legitimate business interests may result in disciplinary action up to and including termination. Know and Follow the Rules Carefully read these guidelines, the General Conduct Guidelines, the Sexual and Other Unlawful Harassment and Anti-Bullying policies, and ensure your postings are consistent with these. Inappropriate postings that may include discriminatory remarks, harassment, and threats of violence or similar inappropriate or unlawful conduct will not be tolerated and may subject employees to disciplinary action up to and including termination. Be Respectful Employees should always be fair and courteous to fellow employees, customers, members, suppliers, or people who work on behalf of the Company. Also, employees should keep in mind that they are more likely to resolve work-related complaints by speaking directly with their co-workers or by utilizing our Complaint Procedure than by posting complaints to a social media outlet. Nevertheless, an employee decides to post complaints or criticism, they should avoid using statements, photographs, video, or audio that reasonably could be viewed as malicious, obscene, threatening, or intimidating; that disparage customers, members, employees, or suppliers; or that might constitute harassment or bullying. Examples of such conduct might include offensive posts meant to intentionally harm someone’s reputation or posts that could contribute to a hostile work environment on the basis of race, sex, disability, religion or any other status protected by law or Company policy. Be Honest and Accurate Employees should make sure they are always honest and accurate when posting information or news and if they make a mistake, it should be corrected quickly and they should be open about any previous posts they have altered. The internet archives almost everything; therefore, even deleted postings can be searched. Employees should never post any information or rumors that they know to be false about the Company, fellow employees, members, customers, suppliers, and people working on behalf of the Company or competitors. Post Only Appropriate and Respectful Content

Employees should maintain the confidentiality of Company trade secrets and private or confidential information. Trades secrets may include information regarding the development of systems, processes, products, know-how and

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technology. Employees should not post internal reports, policies, procedures or other internal business-related confidential communications.

Financial disclosure laws must always be respected. It is illegal to communicate or give a “tip” on inside information to others so that they may buy or sell stocks or securities.

Employees should not create a link from their blog, website or other social networking site to a Company website without identifying themselves as a Company employee.

Only personal opinions should be expressed. Employees should never represent themselves as a spokesperson for the Company. If the Company is a subject of the content they are creating, they should be clear and open about the fact that they are an employee and make it clear that their views do not represent those of the Company, fellow employees, members, customers, suppliers or people working on behalf of the Company. If an employee does publish a blog or post online related to the work they do or subjects associated with the Company, they should make it clear that they are not speaking on behalf of the Company. It is best to include a disclaimer such as “The postings on this site are my own and do not necessarily reflect the views of the Company.”

Using Social Media at Work Employees must refrain from using social media while on work time or on Company equipment, unless it is work-related as authorized by a manager or consistent with the Electronics Assets Usage policy. Employees may not use Company email addresses to register on social networks, blogs, or other online tools utilized for personal use. Retaliation is Prohibited The Company prohibits taking negative action against any employee for reporting a possible deviation from this policy or for cooperating in an investigation. Any employee who retaliates against another employee for reporting a possible deviation from this policy or for cooperating in an investigation will be subject to disciplinary action, up to and including termination. Media Contacts Employees should not speak to the media on the Company’s behalf without contacting Human Resources. All media inquiries should be directed to them. For More Information If an employee has questions or needs further guidance, they should contact Human Resources. Cellular Phones Policy This policy outlines the use of personal cell phones at work, the personal use of business cell phones, and the safe use of cell phones by employees while driving.

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Personal Cellular Phones While at work, employees are to exercise the same discretion in using personal cellular phones as they do for company phones. Excessive personal calls during the workday, regardless of the phone used, can interfere with employee productivity and be distracting to others. The company will not be liable for the loss of personal cellular phones brought into the workplace. Personal Use of Company-Provided Cellular Phones Where job or business needs demand immediate access to an employee, the company may issue a business cell phone to an employee for work-related communications. Such phones are to be used for business purposes only. Any employee who uses a company-owned cellular phone for personal use must reimburse the company for the cost of such use. Failure to reimburse the company may result in disciplinary, action up to and including termination of employment. Employees in possession of company equipment such as cellular phones are expected to protect the equipment form loss, damage or theft. Upon resignation or termination of employment or at any time upon request, the employee may be asked to produce the phone for return or inspection. Employees unable to present the phone in good working condition may be expected to bear the cost of a replacement. Employees who separate from employment with outstanding debts for equipment loss or unauthorized charges will be considered to have left employment on unsatisfactory terms and may be subject to legal action for recovery of the loss. Safety Issues for Cellular Phone Use Employees whose job responsibilities include driving and who are issued a cell phone for business use are expected to refrain from using their phone while driving, and to obey all local and state regulations regarding the use of cellular phones while driving. Safety must come before all other concerns; under no circumstances are employees allowed to place themselves at risk to fulfill business needs. Employees who are charged with traffic violations resulting from the use of their phone while driving will be solely responsible for all liabilities that result from such actions. Violations of this policy may be subject to disciplinary action, up to and including termination of employment. Personal Phones Calls We recognize that employees must sometimes place or receive personal calls on company telephones. However, the telephone system is intended primarily for the conduct of the company’s business, and it is imperative that personal use not interfere with that purpose.

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If you must make a personal call, do so during non-working hours. Ask callers to keep the number and length of calls to a minimum. Personal Property The Company is not liable for lost, misplaced, or stolen personal property. Employees should take all precautions necessary to safeguard their personal possessions. While the Company does not prohibit personal items in the office, desks and office areas are to be kept as neat and organized as possible. Employees should refrain from having their personal mail sent to the Company because mail may be automatically opened. Company Vehicles KDM Development Corporation has strict policies regarding the use of company owned vehicles. Use of any company owned car or truck for personal use is a violation of personnel policy and is a serious matter. KDM Development Corporation will take appropriate disciplinary action if its investigation shows that deliberate use of a vehicle for personal reasons has occurred. Specifically, the following uses of any company owned vehicle are prohibited:

1. Personal use by employees, residents, relatives or friends. 2. Uses of vehicle for helping any park resident do work on their mobile

home. 3. Use of a vehicle for helping a resident move in or out of a home. 4. Use of a vehicle for picking up parts or supplies except for work on

company owned property. 5. Use of vehicles for transporting anything or anyone except on company

business. Any damage caused by misuse or mistreatment of company vehicles that have been assigned to you will be your personal responsibility, with the exception of a reported accident and/or mechanical malfunction. You will be invoiced for whatever repairs are required. Employee Communications All notices that affect employment at KDM Development Corporation, including information regarding safety, labor laws, and policy changes will be posted in each respective office. It is the responsibility of each employee to be aware of all notices and to stay up-to-date on policy changes and regulations as they are posted or distributed. Electronic Communications Policy KDM Development Corporation believes that no information should be accumulated or used in the work place that does not have a clear business or management purpose; that no information should be collected and maintained that is not carefully checked for accuracy; and that no information should be released to anyone without a clear need for that party to know the information.

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KDM Development Corporation reserves the rights to enter, search, monitor, delete and view the computer files, E-mail, and voice mail of any employee, without advance notice, for business purposes such as investigating theft, disclosure of confidential business or propriety information, or personal abuse of the systems. Use of computer facilities for personal reasons during work hours, without permission from a department manager, is strictly prohibited. All computer pass codes must be made available to KDM Development Corporation upon request. Internet Code of Conduct Access to the Internet has been provided to staff members for the benefit of KDM Development Corporation’s organization and its customers. It allows staff members to connect to information sources around the world. Every staff member has a responsibility to maintain and enhance the company’s public image, and to use the Internet in a productive manner. To ensure that all staff members are responsible productive Internet users and are protecting the company’s public image, the following guidelines have been established for using the Internet. Acceptable Uses of the Internet Staff members accessing the Internet are representing KDM Development Corporation. All communications should be for professional reasons. Staff members are responsible for seeing that the Internet is used in an effective, ethical and lawful manner. Internet Relay Chat channels may be used to conduct official company business, or to gain technical or analytical advice. Databases may be accessed for information as needed. Unacceptable Uses of the Internet The Internet should not be used for personal gain or advancement of individual views. Solicitation of non-company business, or any use of the Internet for personal gain is strictly prohibited. Use of the Internet must not disrupt the operation of the company network or the networks of other users. It must not interfere with your productivity. Transmission of harassing, discriminating or objectionable e-mails or files is strictly prohibited. Access to non-business related, obscene or offensive sites is strictly prohibited. Communications Each staff member is responsible for the content of all text, audio or images that they place or send over the Internet. Fraudulent, harassing or obscene messages are prohibited. All messages communicated on the Internet should have your name attached. No messages will be transmitted under an assumed name. Users may not attempt to obscure the origin of any message. Information published on the Internet should not violate or infringe upon the rights of others. No abusive, profane or offensive language is to be transmitted through the system. Staff members who wish to

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express personal opinions on the Internet are encouraged to obtain their own usernames on other Internet systems. Software To prevent computer viruses from being transmitted through the system, there will be no unauthorized downloading of any software. All software downloads must be approved through KDM Development Corporation’s MIS Department. Copyright Issues Copyrighted materials belonging to entities other than KDM Development Corporation may not be transmitted by staff members on the Internet. One copy of copyrighted material may be downloaded for your own personal use in research. Users are not permitted to copy, transfer, rename, add or delete information or programs belonging to other users unless given express permission to do so by the owner. Failure to observe copyright or license agreements may result in disciplinary action from the company or legal action by the copyright owner. Security All messages created, sent or retrieved over the Internet are the property of the company and should be considered public information. The company reserves the right to access and monitor all messages and files on the computer system as deemed necessary and appropriate. Internet messages are public communication and are not private. All communications including text and images can be disclosed to law enforcement or other third parties without consent of the sender or the receiver. Harassment Harassment of any kind is prohibited. No messages with derogatory or inflammatory remarks about an individual or group’s race, religion, national origin, physical attributes or sexual preference will be transmitted. Violations Violations of any guidelines listed above may result in disciplinary action, up to and including termination. If necessary the company will advise appropriate legal officials of any illegal violations. Interpretation Interpretation and administration of this policy is the responsibility of KDM Development Corporation’s Senior Management team. Further, all technical requests are to be directed to the IT department through your manager. Under no circumstances should any user of the network attempt to troubleshoot their own technical solution.

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Inclement Weather This policy establishes guidelines for Company operations during periods of extreme weather and similar emergencies. The Company will remain open in all but the most extreme circumstances. Unless an emergency closing is announced, all employees are expected to report to work. However, the Company does not advise employees to take unwarranted risks when traveling to work in the event of inclement weather or other emergencies. Each employee should exercise their best judgment with regard to road conditions and other safety concerns. Designation of Emergency Closing Only by the authorization of designated managers will the Company cease operations due to emergency circumstances. If severe weather conditions develop during working hours, it is at the discretion of Management to release employees. Employees will generally be expected to remain at work until the appointed closing time. Procedures during Closings If weather or traveling conditions delay or prevent an employee’s reporting to work, their immediate supervisor should be notified as soon as possible. If possible, such notification should be made by a telephone conversation directly with the supervisor. If direct contact is not possible, leaving a detailed voicemail message or message with another employee is acceptable. An employee who is unable to report to work may use any accrued time off or take the day off without pay. Pay and Leave Practices When a partial or full-day closing is authorized by Management, the following pay and paid leave practices apply:

Non-exempt hourly employees will be sent home for partial days with the option of using paid time off for the remainder of the day. If paid time off is not available, employees will be excused from work without pay and without disciplinary action.

Exempt employees will be expected to continue work from home if their job duties allow. The Company will pay the exempt employee’s regular salary regardless, as outlined in the Exempt Employee Payroll Deductions policy.

Exempt and non-exempt employees already scheduled to be off during emergency closings are charged such leave as was scheduled.

Other Work Options Supervisors may approve requests for employees to temporarily work from home, if doing so allows completion of work assignments.

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Solicitations or Distribution of Literature In order to avoid interruption of work and protect you from unnecessary annoyance, employees may not solicit other employees during working time anywhere on company premises. Furthermore, employees may not distribute any written material in work areas at any time or in non-work areas (restrooms, hallways, break rooms) during working time. Non-employees may not distribute materials or solicit employees on company premises at any time. The sale of candy and raffles and solicitations for contributions to charities are subject to the same restrictions as other solicitations. Any questions regarding these rules should be referred to the Senior Management Team at corporate. Violation of these rules will subject non-employees to arrest. Employees will be subject to disciplinary action, up to and including termination. Responsibility for Other Procedural Standards While this employee handbook describes the personnel policies and practices of KDM Development Corporation, employees are also responsible for adhering to the operational and procedural standards of their respective jobs and departments, whether these policies are communicated in writing or through on-the-job instruction. Failure to comply with or to meet existing standards will be considered reason for disciplinary action and may result in termination of employment. Failure to adhere to these procedures may result in disciplinary action up to and including termination of employment. Automobile Accident If an employee is involved in an automobile accident while on Company business (personal or Company car) they must report the accident to their supervisor or manager immediately. Employees should request and obtain a police report and police investigation at the scene of the accident. Employees are not to drive a personal vehicle for Company business unless authorized to do so. If the job requires an employee to operate their personal vehicle, the employee shall be required to submit proof of a current and valid state driver’s license. If employees use their own vehicle, either by authorization or requirement to carry out the business of the Company, they must submit a photocopy of the cover page of their insurance policy covering that vehicle as proof of insurance. Insurance must be maintained current as a term and condition of continuing employment for driving positions.

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CCOONNCCLLUUSSIIOONN Separation from Employment Should you decide to resign from KDM Development Corporation, we request that you give and work out at least two (2) weeks’ notice for staff positions and four (4) weeks’ notice for management positions. KDM Development Corporation will follow state and federal guidelines regarding the payment of final wages. No payment will be made for unused sick time. Any and all company property must be returned upon separation from the company. Further Information Good communications are an important part of a company’s relationship with its employees. We encourage you to express your feelings and voice your ideas about our operations, and we will likewise keep you informed of developments and changes as they occur. If you have a question that is not answered in this handbook or if you would like further information, please speak with your immediate supervisor or with the Senior Management Team at Corporate. They will address your concerns or will direct you to someone who can.

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ACKNOWLEDGEMENT I acknowledge receipt of the Company’s employee handbook. I agree to read the handbook and to follow the guidelines and policies set forth in the handbook and any amendments to the handbook along with the other policies and procedures of the Company. I understand that I am not being hired for any definite period of time even though my wages are paid regularly. I further understand that I am an at-will employee and my employment can be terminated at any time, with or without cause and with or without prior notice either by the Company or myself. No promises or representations have been made to me that I can be disciplined or discharged from my employment with the Company only under certain circumstances or after certain events. I am aware that the contents of the employee handbook are presented as a matter of information and that except for the at-will provisions, the handbook can be amended at any time. I realize that nothing in this handbook is intended to infringe upon my rights under Section Seven of the National Labor Relations Act (NLRA). I understand and agreed that the handbook is for informational purposes only and is not intended to create a contract, nor is it a contract of employment or continuing employment between myself and the Company. I also understand that neither the handbook nor any policy of the Company is a guarantee or promise of employment or continuing employment. I am aware that Company policy requires employees to be hired at-will and this policy cannot be changed by any oral modifications. My at-will employment status with the Company has been fully explained and I have been given an opportunity to ask questions regarding Company policies and my at-will employment status. ____________________________________________________________ Dated ____________________________________________________________ Signature ____________________________________________________________ Print Name