Arrington Watkins Architects Employee Manual

Employee Handbook
Arrington Watkins Architects,

LLC.

Updated: 12/18/2017

Table of Contents

1. Introduction........................................................................................................................... 4
1.1 Welcome… ...................................................................................................................... 4
1.2 Vision Statement.............................................................................................................. 4
1.3 Core Values..................................................................................................................... 5

Employee Receipt and Acknowledgement.................................................................................. 6

Notice to Employees...................................................................................................................... 7

2. Hiring ..................................................................................................................................... 8
2.1 Employee Classifications ................................................................................................ 8
2.2 Orientation...................................................................................................................... 8

3. Personnel Practices ............................................................................................................... 9
3.1. Personnel Files ............................................................................................................... 9
3.2. Privacy Policy................................................................................................................. 9
3.3. Performance Improvement Process.............................................................................. 10
3.4. Change in Policy........................................................................................................... 11

4. Wages and Hours ................................................................................................................ 12
4.1. The Fair Labor Standards Act ...................................................................................... 12
4.2. Pay ................................................................................................................................ 12
4.3. Time Records ................................................................................................................ 12
4.4. Payroll Withholding...................................................................................................... 13
4.5. Hours............................................................................................................................. 13

5. Employee Benefits............................................................................................................... 14

5.1. Medical/Dental Insurance ............................................................................................ 14

5.2. Voluntary Benefits......................................................................................................... 14

5.3. Wellness Allowance ...................................................................................................... 14

5.4. Paid Time Off................................................................................................................ 15

5.5. Profit Sharing Plan ....................................................................................................... 17

5.6. Educational Assistance ................................................................................................. 18

5.7. Licensure Expense Reimbursement............................................................................... 19

5.8. Bonuses ......................................................................................................................... 19

5.9. Referral Compensation Policy...................................................................................... 19

Arrington Watkins Architects
Employee Handbook
Updated: 12/18/2017

6. Health & Safety ................................................................................................................... 21
6.1 OSHA ............................................................................................................................ 21
6.2 Workers Compensation................................................................................................. 21
6.3 Tobacco Use.....................................................................Error! Bookmark not defined.
6.4 Substance Abuse............................................................................................................ 21

7. Equal Opportunity Employer............................................................................................ 23
7.1 Unlawful Harassment ................................................................................................... 23

8. Terminations ....................................................................................................................... 26
8.1 Termination by Firm ..................................................................................................... 26
8.2 Termination by Employee ............................................................................................. 27
8.3 COBRA.......................................................................................................................... 27
8.4 Final Paycheck.............................................................................................................. 27

9. Professional Conduct .......................................................................................................... 28
9.1 Firm Image.................................................................................................................... 28
9.2 Professional Appearance .............................................................................................. 28
9.3 Client Communications................................................................................................. 28
9.4 Attendance..................................................................................................................... 29
9.5 Confidential Information .............................................................................................. 29
9.6 Moonlighting................................................................................................................. 29
9.7 Communication ............................................................................................................. 29
9.9 Use of Company Name.................................................................................................. 30

10. Expenses........................................................................................................................... 31
10.1 Guidelines for American Express Credit Card Use...................................................... 31
10.2 Travel Policy................................................................................................................. 31
10.3 Petty Cash ..................................................................................................................... 31

Arrington Watkins Architects
Employee Handbook
Updated: 12/18/2017

1. Introduction

1.1 Welcome…

Arrington Watkins Architects (AWA) welcomes you to our firm. The firm was founded by
David Watkins and Lynn Arrington in 1994. In 2017, Arrington Watkins Architects went
through an ownership transition. They invited 7 employees to become the new owners
of the company. The 7 employees have worked together for several years. A few of
which have been with the company since its inception. The group of 7 have contributed
to the success of the firm and have played significant roles in shaping the culture of the
company. It only made sense to David and Lynn to keep the business in the family.

Our mission is to remain small enough that we can give personal attention to a select
group of repeat clients; yet large enough to handle our largest and most demanding
projects. Each of the principals are intimately involved in each project that the firm
undertakes. Working closely with a talented group of architects, architects-in-training and
support staff, equipped with the latest technology available.

We have provided architectural services to government clients, corporations and
design/build firms throughout the United States on projects ranging in size up to $200
million construction cost. Our firm’s expertise is in the design and management of
projects that are technically complex in their systems, function or processes. These
projects have included prisons, jails, police facilities, medical installations, high-tech
office/assembly, manufacturing and warehouse buildings and retail fuel installations.
Much of our experience is in managing complex projects involving multiple consultants,
approving agencies, owners and user groups.

As a firm, our goal is to develop and service clients, not projects. We understand that
you share that philosophy and look forward to having you as a part of our team. As an
employee of Arrington Watkins Architects, you are entitled to share the firm offered
benefits. Outlined in this manual are firm benefits, polices, and procedures.

1.2 Vision Statement

Arrington Watkins Architects was founded with the vision of creating a firm that was based
on several sound business principles.

• Our primary focus is client service.

• We will maintain the leadership and talent to give personal attention to our clients
and be flexible enough to react to their changing and emerging needs.

• We focus on building and maintaining relationships with our clients, our partners,
and our employees.

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• We strive to utilize technology to its maximum to provide innovative designs and
solutions that will meet the needs of our clients.

• Our passion and expertise is in collaborating to solve technically complex design
issues and manage complex systems and processes.

• Following our Core Values, we will foster a culture of respect and partnership in
pursuing shared efforts, career development goals and personal satisfaction.

1.3 Core Values

We think it is important for us to define the core values from which springs our culture and our
business strategies. In 2011, Lynn and David led the entire team on a journey to identify our
core values. Every single employee took an active role on this journey and as a group, came
up with the following 12 core values.

• Be creative, innovative and pursue new ideas
• Pursue and share knowledge
• Be passionate and dedicated to your work
• Support a balanced life
• Have fun!
• Be accountable
• Build lasting relationships
• Promote open and honest communication
• Embrace and drive change
• Provide a WOW service experience
• Foster a collaborative environment
• Treat people fairly and with respect

Arrington Watkins Architects
Employee Handbook
Updated: 12/18/2017

Employee Receipt and Acknowledgement

By my signature below, I certify and acknowledge the following:

I have received and will read the Arrington Watkins Architects Employee
Handbook. I understand that the policies, rules and benefits described in it are
subject to change or may be varied from by the Firm, depending on the particular
circumstances of a given situation.

I understand that by signing this acknowledgment that I am responsible for reading,
understanding and complying with the contents of the handbook.

It is expressly understood that the contents of this manual do not constitute the
terms of a contract of employment, and that my employment with Arrington
Watkins Architects is on an at-will basis, which means that the employment
relationship may be terminated at any time by either the employee or the Firm or
any affiliated organization with or without cause and with or without notice.

My at-will employment relationship with the Firm or any affiliated organization
cannot be changed to a contract for a particular term, or otherwise modified, except
by written contract signed by myself and a principal of Arrington Watkins
Architects.

___________________________
Employee’s Printed Name

___________________________ _________________
Employee’s Signature Date

Arrington Watkins Architects
Employee Handbook
Updated: 12/18/2017

Notice to Employees

In writing this Employee Handbook, we have avoided the use of specific gender pronouns
wherever possible. However, where such avoidance would have led to very awkward
sentences, we have used the masculine pronoun. This use should be considered to refer
to both genders.

The contents of this employee handbook summarize present Firm programs and policies and
are intended as guidelines only. The employee should be aware that these policies and
programs may be amended at any time, and that depending on the particular circumstances
of a given situation, the Firm’s action may vary from written policy. As such, the contents of
this handbook DO NOT CONSTITUTE THE TERMS OF A CONTRACT OF EMPLOYMENT.
Nothing in this handbook should be construed as a guarantee of continued employment, but
rather, employment with the Firm is on an “at-will” basis. This means that either the employee
or the Firm for any reason not expressly prohibited by law may terminate the employment
relationship at any time. Any written or oral statement to the contrary by a supervisor,
corporate officer or other agent of the Firm is invalid and should not be relied up on by any
prospective or existing employee.

This Employee Handbook supersedes all previous firm handbooks and policies. In addition,
this handbook supersedes all prior management memos to the extent that such memo
contradicts a subject or policy covered therein.

Arrington Watkins Architects
Employee Handbook
Updated: 12/18/2017

2. Hiring

2.1 Employee Classifications

For the purposes of firm management and for the application of benefits, each
employee is classified as one of the following:

A. Principals: Owners of the firm
B. Associate: Registered Architects who are responsible for managing

projects, and manage relationships with clients and consultants.
C. Management: Individuals responsible for managing projects or other

elements of the business.
D. Technical / Administrative: BIM modelers, project coordinators, project

architects, and administrative personnel.

In addition, employees are considered full-time or part time, permanent or temporary.
Part time employees are scheduled to work 29 hours or less per week and are not
eligible for employee benefits. Temporary employees are ineligible for benefits.

2.2 Orientation

Each new employee will participate in an orientation on their first day of employment,
intended to cover the basic information contained in this manual, as well as the
individual’s job responsibilities. It is not feasible, however, to cover every conceivable
issue in this manual or in the orientation. The actual orientation period will likely extend
for days, if not weeks. Employees are encouraged to ask an Associate, Business
Manager or Principal any questions that they may have, to assist in their orientation to
the firm.

Arrington Watkins Architects
Employee Handbook
Updated: 12/18/2017

3. Personnel Practices

3.1. Personnel Files

Arrington Watkins Architects maintains a personnel file on each employee. Active employees
may review their personnel file upon request and in the presence of authorized personnel. To
ensure that your personnel file is up-to-date at all times, notify the office manager of any
changes in your name, telephone number, home address, marital status, number of
dependents, beneficiary designations, scholastic achievements, the individuals to notify in
case of an emergency, and so forth.

3.2. Privacy Policy

In the course of our business practice and, in some cases, as required by law, we collect, use,
and maintain personal and confidential information about each employee. This information is
used for many purposes, including:

• Compliance with federal, state, or local laws

• Determination of eligibility of employment

• Determination of eligibility for employee benefits

• Communication with employees regarding the firm

We respect the privacy of our employees and the confidentiality of personal information. At
no time will confidential information be knowingly shared or disseminated to unauthorized
parties. To attain this standard, Arrington Watkins Architects has committed significant
resources to ensuring the safety and confidentiality of our employee’s personal information.

As part of our commitment to your privacy, certain policies have been established to protect
your information when it is shared inside and outside the firm. Employees that are authorized
to have access to employee information have received specific instruction in issues of
information confidentiality.

It is also necessary for information to be shared with outside organizations such as health-
plan providers, governmental agencies, and other third party vendors. In cases where
confidential information might be shared, specific written agreements regarding confidentiality
are enacted and monitored with any outside organization.

In all other cases in which information might be shared with individuals or organizations that
may not have specific policies or agreements in place, we will obtain permission from any
affected employee prior to releasing the information, unless the law prescribes otherwise.

Arrington Watkins Architects
Employee Handbook
Updated: 12/18/2017

Employment information for the purposes of credit references and/or mortgage letters will not
be disclosed unless an authorization is presented with the employee’s signature.

3.3. Performance Improvement Process

For the first year of employment, we will conduct a quarterly review. The quarterly reviews
are intended to check-in with the employee to discuss expectations, provide the employee
with feedback on their performance and also to solicit feedback from the employee on our
performance as an employer.

After the first year, the employee is asked to drive their review process. The review
process consists of two parts; the project or periodic review and the annual review. The
project review is designed to set up expectations and role responsibilities at the beginning
of a project assignment with the project manager and is followed up with one or more
reviews (depending on the size of the project). The follow up reviews are a two way
discussion on the performance on the project and whether expectations were met on both
the project manager’s and the employee’s part.

Periodic reviews are similar to the project reviews with the exception that they are not tied
to a particular project. These reviews are designed for those who either work on multiple
projects on an inconsistent basis and for those who do not work on projects. These
reviews are expected to occur every 3-4 months with the employee’s direct supervisor or
the operations manager.

Annual reviews are expected to occur on or around the employee’s anniversary. The
purpose of this review is to discuss the employee’s periodic or project reviews from the
previous year, establish or confirm that an employee is on track with their career goals,
discuss opportunities that employee’s need or may take advantage of in order to further
develop in their careers and anything else that the employee wishes to discuss. These
reviews are attended by the operations manager, the talent development director and
anyone else that the employee wishes to invite. Typically a project manager or supervisor
that an employee has worked with.

There are a number of forms and tools that are available to the employee to help through
this process.

Arrington Watkins Architects
Employee Handbook
Updated: 12/18/2017

3.4. Change in Policy

The policies in this handbook are subject to change at the sole discretion of the firm. We will
notify you of any changes by appropriate means. However, changes in firm policy may be
made at any time without notice. Changes will be effective on dates determined by the firm
and you may not rely on policies that have been superseded.

If you are uncertain about any policy or procedure, please check with management.

Arrington Watkins Architects
Employee Handbook
Updated: 12/18/2017

4. Wages and Hours

4.1. The Fair Labor Standards Act

It is the intent of Arrington Watkins to adhere to the Fair Labor Standards Act, which requires
employers to pay non-exempt employees at least $10.00 per hour and overtime pay at a rate
of 1.5 (one and one half) times their regular rate for any hours worked over 40 hours in one
work week. Each staff member will be classified as either non-exempt or exempt and will be
paid as follows.

4.2. Pay

Non-exempt employees will be paid at a set rate for each hour of work. Any overtime (over
40 hours in a work week) by an hourly person will be paid at their hourly rate times 1.5 (one
and one half). Overtime must be approved by a Principal or Project Manager before the time
is worked.

Exempt employees are paid a set salary for each pay period, regardless of how many hours
they work. The expected minimum number of work hours for a salaried employee is 2288
(2080 hours plus 10%) hours in a year.

Pay periods end on the 15th and the last day of each month. Paydays are typically 2 business
days following the end of the pay period. There will be variations based on which day of the
week the pay period ends. For pay periods that end on a Friday or the weekend, the pay date
will be that following Tuesday. If you resign, final settlement of services or wages will be made
no earlier than the next regular pay cycle, or in accordance with state law, whichever is sooner.
If you are terminated, you will be paid within three of the employee’s working days or the next
payday, whichever is sooner.

4.3. Time Records

Each employee is required to submit a time sheet every pay period. Hours recorded on time
sheets are broken down by project. In some cases, comments may be required to describe
the work performed for that particular project.

In general, hours recorded while traveling are to match billable hours. Do not record
hours that are spent eating, drinking, sleeping, watching T.V., etc. All hours spent on day
trips are compensable, including hours spent traveling.

On trips involving an overnight stay, hours during normal working hours and other hours
spent working, are compensable. Travel and free time outside of normal working hours
are not compensable.

Arrington Watkins Architects
Employee Handbook
Updated: 12/18/2017

Time spent in meetings with outside organizations is compensable for non-exempt
employees under the following:

• The involvement with the outside organization is encouraged and supported by
Arrington Watkins Architects.

• Employees have received approval from Principals before attending the meeting.

Employees may be asked to adjust their schedule so that the total number of hours worked
do not exceed 40 hours in one work week.

Time records are kept by the firm for a minimum of three (3) years and open for inspection by
the Department of Labor.

4.4. Payroll Withholding

In order to comply with State and Federal laws, Arrington Watkins is required to withhold
payroll taxes from each paycheck. Payroll tax withholdings may include Social Security,
Medicare, and State and Federal taxes. The rates at which the taxes are withheld are
determined based on the information provided by employees on State and Federal tax
withholding forms and at the standard rate for Social Security and Medicare.

Other payroll withholdings may include but are not limited to court-ordered garnishments,
medical/dental premiums, pre-paid legal, Section 125 employee-determined deductions,
employee loans, or other deductions authorized by the employee.

4.5. Hours

Arrington Watkins offers flexible schedules that are chosen by the employees based off the
time frames listed on the Adjusted Schedule form. It is your responsibility to work during the
core hours of 9:00 am to 4:00 pm and to work no less than 8 hours a day and no less the 40
hours a week. Arrive at work location (in the office, offsite meetings, or site) at least 5 minutes
prior to established starting time, in order to start work at the scheduled time. In the event
that the schedule you have chosen is not working for you and changes need to be made,
please see Michelle.

Arrington Watkins Architects
Employee Handbook
Updated: 12/18/2017

5. Employee Benefits

5.1. Medical/Dental Insurance

Full-time employees are entitled to participate in the firm’s major medical group insurance
and dental insurance one month after date of hire. Arrington Watkins Architects offers
employees a monthly allowance in which employees can apply to the insurance
premiums. The monthly allowance is determined annually at benefit renewal. Benefit
renewal occurs in May of each year.

Please see Human Resource for current benefits structure

5.2. Voluntary Benefits

Arrington Watkins Architects offers various voluntary benefits which include:

• Aflac (Short term disability, sickness indemnity, long term disability, many more)

• United Pet Care (pet care discount program)

• Legal Shield

• Identity Theft Shield
A complete description of these benefits will be provided during orientation.

5.3. Wellness Allowance

In an effort to promote healthy choices for our employees, the company offers a monthly
wellness allowance of up to $30 per month. The allowance may be used to reimburse a
number of expenses that contribute to a healthy lifestyle. The terms of this benefit are below:

• Employees are eligible for this allowance after 30 days of employment.
• Employees may not roll over the benefit from month to month.
• Employees have until the last day of the following month to submit a claim
• This is an employee-only benefit. Employees may not submit claims for their

dependents.

A complete description of the program will be provided during orientation.

Arrington Watkins Architects
Employee Handbook
Updated: 12/18/2017

5.4. Paid Time Off

Holidays

Each year, Arrington Watkins closes its offices on the following holidays:

• New Year’s Day

• Memorial Day

• Independence Day

• Labor Day

• Thanksgiving Day

• Christmas Day

Non-exempt employees who wish to be paid for a day the office is closed may use
accrued PTO. Salaried exempt employees receive their regular salary for any week in
which a holiday occurs, without using PTO for the holiday.

Paid Time Off

Arrington Watkins combines all types of paid leave into one policy, known as Paid Time
Off, or PTO, which is available to all regular, full-time employees. Those employees may
use accrued PTO for any reason they see fit, such as relaxing, traveling, illness, and
caring for others. This includes any paid sick leave to which employees may be entitled
the Arizona Fair Wages and Healthy Families Act, as described in more detail in the
Company’s Paid Sick Leave policy.

Eligible employees accrue specified hours of leave each pay period, except when on
unpaid leave. Accrual of PTO hours will cease once the Cap is reached. Hours accrue
and are capped according to the following schedules:

Salaried Exempt Employees

Years of Hours Hours Day Accrued per PTO Cap
Service Accrued Accrued Year (in hours)
per Pay per Year
Period 240
320
0 through 5 5.00 120 15
160 20
6 and up 6.67

Arrington Watkins Architects
Employee Handbook
Updated: 12/18/2017

Non-Exempt Hourly Employees

Years of Hours Hours Day Accrued per PTO Cap
Service Accrued Accrued Year (in hours)
per Pay per Year
Period 336
416
0 through 5 7.00 168 21

6 and up 8.67 208 26

Leave Use

Employees accrue leave beginning with their first day of employment. However,
employees hired after July 1, 2017 are not eligible to use paid leave until after 90 days
from their start date. Leave taken prior to the date an employee is eligible to use paid
leave will be without pay.

PTO may be taken in less than full-day increments. When leave taken exceeds the paid
leave available, the leave is without pay. Habitually taking leave in excess of accrued paid
leave is not acceptable. At the Company’s discretion, employees may be permitted to
have a small “negative” leave balance upon approval by the Company.

When salaried exempt employees work less than 4 hours on a scheduled work day,
their PTO bank will be charged, unless the employee has worked a least 44 hours in
that work week.

Leave Notification

Although employees may have accrued leave, they do not have an automatic right to take
it at any time. Leaves that can be anticipated must be requested in advance. The longer
the requested leave, the longer the Company will require to arrange for proper coverage.
The minimum considered acceptable for an anticipated leave is one week. If appropriate,
the supervisor will either approve the leave or suggest a more convenient time.

Leaves that cannot be anticipated (such as a sudden illness) must be communicated to
the Company as soon as possible so that proper coverage may be arranged (usually
before the employee’s shift begins). All leave requests must be communicated to Human
Resources and/or the appropriate Project Manager.

Arrington Watkins Architects
Employee Handbook
Updated: 12/18/2017

Unused Leave

Regular, full-time employees leaving the Company will be paid for unused PTO accrued
through the last day worked, up to a maximum of 80 hours. PTO cannot be used to extend
the date of termination. Should employment end during the first three months of
employment, no payment will be made to the employee for accrued unused PTO. Part-
time and/or seasonal employees will not receive any payment for accrued unused paid
sick leave upon termination of employment, as stated in the Paid Sick Leave policy.

Everyone needs time away from the office and should use their paid time off.

Paid Sick Leave

In compliance with the Arizona Fair Wages and Healthy Families Act, part-time and
seasonal employees will accrue paid sick time at a rate of 1 hour per 30 hours worked
with a cap of 40 hours of paid sick time per year. This Paid Sick Leave policy is separate
from the Company’s Paid Time Off (PTO) policy, which is only available to regular, full-
time employees and not to part-time and/or seasonal employees. Regular, full-time
employees will accrue paid time off, including paid time off for sick leave as required by
the Fair Wages and Healthy Families Act, based on the PTO policy above.

Part-time and seasonal employees covered by this policy may roll over up to 40 hours of
unused accrued paid sick time to the following year. Use of accrued paid sick leave under
this policy is limited to 40 hours per year. The Company will not compensate unused paid
sick leave at separation, whether voluntary or involuntary.

Employees may use earned paid sick time for themselves or for family members (see
Arizona Revised Statutes § 23-373 to see who qualifies as a family member) in the
following circumstances:

• Medical care or mental or physical illness, injury, or health condition;

• A public health emergency (see Arizona Revised Statutes § 23-373 for more
information about what qualifies as a public health emergency); and

• Absence due to domestic violence, sexual violence, abuse, or stalking.

See Arizona Revised Statutes § 23-373 for further detail concerning authorized uses for
earned paid sick time and definitions of family members.

Retaliation and/or discrimination against any employee who requests or uses paid sick
time or otherwise asserts any right under the Fair Wages and Healthy Families Act, or
who assists any other person in doing so, is prohibited by the Company and by Arizona
law.
Any employee has the right to file a complaint with the Arizona Industrial Commission’s Labor
Department if he or she is improperly denied the use of paid sick time as required by law or is

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subjected to retaliation or discrimination for properly requesting or taking paid sick time.
Contact information for the Arizona Industrial Commission is: 800 W. Washington Street,
Phoenix, AZ 85007; (602) 542-4515; www.azica.gov.

5.5. Profit Sharing Plan

Full-time permanent employees are entitled to participate in the firm’s profit sharing plan.
In order to be eligible for this benefit, the employee must have completed one (1) year of
service and be at least 21 years of age. If at the end of the first twelve (12) consecutive
months of employment and completion of a minimum of 1000 hours of service, the
employee will have completed 1 year of service.

Employee will become a participant on a specified day of the Plan Year. This day is called
the Effective Date of Participation.

Employee will become a participant on the earlier of January 1 or July 1 following one
year of service.

This profit sharing plan is a discretionary plan.

5.6. Educational Allowance

Arrington Watkins encourages and supports the furthering of each employee’s
education and career. Full-time employees who have completed one year of
employment are eligible to submit educational expenses for reimbursement of up to
$300 per calendar year. Examples of educational opportunities that are eligible for
educational assistance are: courses in pursuit of an accredited course of study leading
to a degree, courses, seminars, workshops or other expenses leading to licensure (not
including exam fees) or seminars and workshops to further knowledge or skills related
to their job or possible future position at Arrington Watkins.

5.7. ARE Exam Expenses

Employees who are taking their ARE exams will receive compensation in the form of a
bonus in an amount that will cover the cost of all the exams. In addition to this,
employees whose exams are scheduled during their normal work hours will be paid for
that time. This will not be counted against the employee’s PTO hours. In order to be
eligible for these benefits employees will have worked for the company for a minimum of
12 months and may be required to submit official documentation.

Arrington Watkins Architects
Employee Handbook
Updated: 12/18/2017

5.8. Licensure Expense Reimbursement

Activation fees and renewal fees incurred by an employee to maintain an architectural
license or other license or certification that the firm requires you utilize as a condition of
your employment at Arrington Watkins Architects, will be reimbursed by the firm. The
firm must require that an Architect seal and sign drawings in order for the employee to
qualify for this reimbursement for an architectural license. Continuing education
expenses as a prerequisite to license renewal are covered under educational
assistance.

5.9. Bonuses

In general, non-exempt people are paid for all hours that they work and therefore will
participate to a much lesser extent in any discretionary bonuses paid by the firm. Because
exempt employees may work well over 40 hours per week with no guarantee of additional
compensation, they ordinarily will be the primary recipients of any discretionary bonuses
given by the firm.

5.10. Referral Compensation Policy

Our people are a huge part of what makes us successful. In order to continue to
distinguish ourselves from the competition, we have to continue to attract quality people;
people that have our same values and will be successful in our company and culture. It
is with this in mind that we are implementing an employee referral bonus program.
Employees will be eligible for a cash bonus, the size of which depends on the position, if
any candidate referred by them is hired by Arrington Watkins.

Bonus Amounts: $1,000
Administrative

Drafters / Job Captains $2,000

Registered Architects / Project Managers $3,000

Payment: The award will be paid in two installments. The first half will be paid on the
date of hire. The second half will be paid 90 days after the date of hire, provided both
employees are still with the firm.

Eligibility: All employees who are not Principals are eligible to participate, provided
they are still employed with the firm at the time the awards will be made and have been
with the firm for a minimum of six months prior to referring the candidate.

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Updated: 12/18/2017

There must be an established personal relationship between the employee and the
candidate. Employees may not cold call or search job banks to identify candidates. The
referred employee cannot be a former employee of Arrington Watkins.

If the referred candidate is not hired initially, the referring employee may refer this
candidate again to fill another position.

Process: To refer a candidate, please contact Michelle. The firm will attempt to keep
all employees apprised of any available opportunities at the firm. The program will be
reviewed on an annual basis and may be cancelled at the company’s discretion.

Taxes: All bonus awards for referrals are taxable income. Bonus awards will be noted
on the employee’s W-4 and cumulative check stubs record as “bonus” but will be made
as a separate stand-alone payment.

Arrington Watkins Architects
Employee Handbook
Updated: 12/18/2017

6. Health & Safety

6.1 OSHA

It is the intention of the firm to comply with the OSH Act. The OSH Act requires employers to
comply with safety and health standards issued by OSHA, as well as with other regulations
issued by OSHA. In addition, the Act includes a "general duty clause," which applies to
hazards not addressed by any specific OSHA standard. The general duty clause requires
employers to provide their employees with a workplace that is free from recognized hazards
that are causing or likely to cause death or serious physical harm.

6.2 Workers Compensation

It is the intention of the firm to comply with laws and regulations regarding Worker’s
Compensation. Workers’ compensation is a "no fault" system in which injured workers receive
medical and compensation benefits no matter who causes the job-related accident. If an
illness or injury is job-related, the injured worker (also known as a claimant or applicant)
receives medical benefits and may receive temporary compensation, if eligibility requirements
are met. In some cases, a claimant may also receive permanent compensation benefits and
"job retraining." If an employee becomes injured while on the job, the injury must be reported
to either a manager or supervisor immediately. All necessary steps will be taken by the firm
to ensure compliance with Worker’s Compensation regulations.

6.3 Substance Abuse

Arrington Watkins Architects is committed to providing a drug free environment. Since our
employees are our most valuable resources, and the safety of our employees and the
public is important to us, we have developed and published this substance abuse policy
to help us contribute to the solution of this very difficult health and social problem. Our
policy is intended to accurately detect and deter the use and abuse of drugs in our
workplace, while respecting the dignity and privacy of all of our employees.

Although this Firm is not required to comply with the Drug Free Workplace Act of 1988,
or the drug testing guidelines published by the U.S. Department of Health and Human
Services and/or the U.S. Department of Transportation, our policy takes into account
those requirements. Those provisions establish reasonable bases to ensure that the
legitimate needs of the employees are balanced properly against the Firm's concerns of
protecting the workplace and our employees.

Therefore, it is the policy of the Firm that the possession, sale or use of illegal drugs is
not consistent with the Firm's needs to operate in a safe and efficient fashion. For that
reason, no employee of the firm may use or possess unlawful drugs. This policy also

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prohibits employees from such use that impairs their performance of work on the job, as
well as prohibiting use while on Firm business at any time, whether on the property or off.

Employees are also prohibited from bringing prescription drugs on Firm property, unless
a licensed physician has prescribed them and employees use such prescriptions in the
manner, combination and quantity prescribed. In instances where any employee holds a
position, which this Firm considers to be safety sensitive, the employee must notify
management if prescribed drugs may cause impairment creating a safety risk or
impacting fitness for duty.

Any employee who is convicted of a crime involving the violation of any Federal or non-
federal statute prohibiting the manufacture, sale, distribution, possession or use of any
controlled substance in the work place must notify the Firm within five (5) days after such
conviction.

Violation of any portion of this policy will subject the employee to appropriate disciplinary
measures, up to and including termination.

The Firm will provide information on appropriate assistance programs and "wellness"
clinics to any employee who feels he or she may have a problem with chemical
dependency or the use of alcohol. The firm encourages its employees to participate in
such assistance programs, treatment facilities, or other similar programs, and notes that
participation in an appropriate assistance program may be covered, in part, under the
Firm existing health/disability benefits.

The elements of this Substance Abuse Policy are intended to achieve the overall goal of
fostering a drug-free workplace and a healthy, safe environment for our employees.
Although this policy has been carefully written to address all of the concerns in this
sensitive area, the Firm reserves the right to modify or amend it. Employees will be
notified if any changes are made.

A copy of this Substance Abuse Policy will be provided to every person hired by the Firm,
to any person offered conditional employment, and upon request, to any job applicant. An
employee who has questions or concerns about this policy should contact the following
individual, who is serving as the Firm's liaison for this Purpose: Michelle Diaz

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7. Equal Opportunity Employer

It is the policy of Arrington Watkins Architects to recruit, hire, develop and promote employees
based on the individual’s ability and job performance.

Every job applicant and employee should know that our policy of nondiscrimination on the
basis of race, sex, religion, national origin, color, age, disability and veteran status extends to
all conditions and all areas of the workplace. Hiring decisions, promotions, training, pay,
benefits, layoffs, terminations, in fact, all personnel actions are covered by this policy. In
addition, it continues to be our policy to maintain a working environment that is free of unlawful
harassment.

All of us have a responsibility to support this policy and to ensure that it is fully implemented
within our organization. To this end, employees are expected and encouraged to bring Equal
Employment Opportunity problems to our attention so that the issues can be investigated and
the appropriate action taken. This is the right of each and every employee. Managers and
supervisors will ensure that there is no coercion, intimidation, or harassment of any employee
who calls attention to such problems, who files a complaint alleging discrimination, or who
participates in an investigation, compliance review or hearing related to these issues.

We believe that Equal Employment Opportunity can be achieved by implementing an effective
Affirmative Action Program. Our program outlines specific affirmative action responsibilities
for managers and supervisors and contains sections dealing with our efforts on behalf of
workers and disabilities and veterans of the Vietnam Era.

Michelle Diaz is our corporate Equal Employment Opportunity officer, and should be
contacted if you have any questions concerning our Affirmative Action Program. The Plan
Summary is included in this handbook (section 7.2). The Plan will be reviewed and updated
each year.

7.1 Unlawful Harassment

Arrington Watkins Architects is committed to maintaining a work environment that is free
of discrimination. In keeping with this commitment, we will not tolerate unlawful
harassment of our employees by anyone, including any supervisor, co-worker, or third
party. Harassment consists of unwelcome conduct, whether verbal, physical or visual,
that is based on a person’s race, color, national origin, religion, age, sex gender or
disability. Harassment that affects job benefits, interferes with an individual’s work
performance, or creates an intimidating; hostile or offensive work environment will not be
tolerated.

Harassment may include derogatory remarks, epithets, offensive jokes, the display or
circulation of offensive printed or visual material, or offensive physical actions. Sexual
harassment deserves special mention. Unwelcome sexual advances, requests for sexual
favors, or other physical, verbal or visual conduct based on sex constitutes harassment

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when (1) submission to the conduct is required as a term or condition of employment or
is the basis for employment action, or (2) the conduct unreasonably interferes with an
individual’s work performance or creates an intimidating, hostile or offensive workplace.
Sexual harassment may include sexual propositions, innuendo, suggestive comments,
sexually oriented jokes or teasing, or unwelcome physical contact such as patting,
pinching or brushing against another.

All firm employees are responsible for helping to enforce this policy against harassment.
Any employee who has been the victim of prohibited harassment or who has witnessed
such harassment must immediately notify their supervisor so the situation can be
promptly investigated and remedied. If it is the supervisor who is responsible for the
harassment or reporting the situation to the supervisor fails to remedy the situation,
complaints of harassment must immediately be reported to the owners. It is the firm’s
policy to investigate all harassment complaints thoroughly and promptly. To the fullest
extent practicable, the firm will maintain the confidentiality of those involved. If an
investigation confirms that harassment has occurred, the firm will take corrective action,
which may include discipline up to and including immediate termination of employment.
The firm also forbids retaliation against anyone who has reported harassment or who has
cooperated in the investigation of harassment complaints.

Any employee who believes that he or she has been the subject of sexual harassment
should report the alleged charge immediately in accordance with the following procedure.
All information disclosed pursuant to this procedure will be held in strictest confidence,
and will only be disclosed on a need-to-know basis in order to investigate and resolve the
matter.

1. Any employee who has a concern, grievance or complaint about harassment in
the workplace should report it directly to any of the managing principals or Michelle
Diaz.

2. The Firm will promptly initiate a thorough administrative investigation of the
complaint. The employee reporting the matter will be requested to give a statement
about what was said; what was done; where it occurred, and what behavior the
employee believes to have been inappropriate. The alleged harasser will similarly
be requested to give a statement. Also, the Firm will request the complainant to
give the names of any other individuals who the employee believes, may have
knowledge concerning the incident or similar incidents. If the Firm believes that
these potential witnesses will be helpful in resolving the matter, the Firm will
conduct interviews of those individual for corroboration of the matters described by
the complainant. Any employee with knowledge of the allegations will be
encouraged to participate fully and truthfully in the administrative investigation.

The investigation of the complaint will not be handled solely by one person, but will be
conducted by at least two individuals at all times. It is important that the complaint be
investigated by top management, or it’s outside independent representatives, and that all
information be kept confidential. The investigation will be handled in a professional manner

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that protects the identity of both the person bringing the charge, potential witnesses, and the
person accused of improper behavior.

If it is determined after the investigation that sexual harassment has in fact taken place,
appropriate corrective action will be taken against the person or persons responsible.
Depending on the findings of the investigation, the corrective action could range from
counseling of the employee to disciplinary actions, up to and including termination. If the
investigation reveals that someone outside of the Firm's employee has engaged in sexual
harassment of a Firm employee, the Firm will take appropriate actions against such individuals
or companies employing such individuals.

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8. Terminations

8.1 Termination by Firm

Arrington Watkins Architects considers the following as inappropriate behavior and conduct:

Violating any of the firm’s enforced policies.

Excessive absenteeism or tardiness

Excessive, unnecessary, or unauthorized use of Firm property and supplies,
particularly for personal use

Fighting or using obscene, abusive, or threatening language or gestures

Theft of property from co-workers, customers, or the Firm

Insubordination

Failing to maintain confidentiality of firm, customer or client information.

Should an employee’s performance, work habits, overall attitude, conduct or demeanor
become unsatisfactory based on violations either of the above or of any other firm policies,
rules or regulations, you will be subject to disciplinary action, up to and including termination.

Before or during imposition of any discipline, employees may be given an opportunity to relate
their version of the incident or problem and provide any explanation or justification they
consider relevant.

It is Arrington Watkins Architects’ policy to openly communicate its standards of conduct as a
means of avoiding the occurrence of undesired conduct. Such policies and procedures are
necessary for the orderly operation of our business, and for the protection and proper
treatment of all employees. Employees are therefore urged to use reasonable judgment at
all times and to seek supervisory advice in any doubtful situation.

The firm does not follow a ‘progressive discipline’ system where a less severe type of
discipline must be imposed before more serious disciplinary procedures are used. Instead,
employment with the firm is at-will and can be terminated at any time with or without cause
and with or without notice. Any types of discipline, including verbal and written warnings,
probation, suspension, or termination of employment may be imposed in any order, at firm
discretion, based on the facts and circumstances existing in each case. Supervisors should
strive for consistency in disciplinary matters and when a new, uncertain or unusual situation
occurs, the owners should be consulted.

The illustrations of unacceptable conduct cited throughout this handbook are to provide
specific and exemplary reasons for initiating disciplinary action and to alert employees to the

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more common types of employment conduct violations. However, because human conduct
is unpredictable, no attempt has been made to establish a complete and comprehensive list
of such conduct violations. Should there arise any instances of unacceptable conduct, the
firm may likewise find it necessary and appropriate to initiate disciplinary action.

8.2 Termination by Employee

When employees choose to leave Arrington Watkins Architects, the firm prefers that the
employee give a two-week notice in writing stating the reason why the employee is leaving
the firm and the date of the last day of work. Upon termination, the employee must surrender
any and all firm property including, but not limited to cell phones and firm issued credit cards
or computer equipment.

8.3 COBRA

If you leave your job, or are fired from your position, you are entitled, under federal law, to
continue receiving your health benefits. Under the Consolidated Omnibus Budget
Reconciliation Act (COBRA), employers with 20 or more employees must give departing
employees the option of continuing their health coverage at the worker’s own expense (plus
an administrative fee) for up to 18 months – including family coverage. Appropriate
paperwork will be given to the employee upon notice of termination.

Upon termination appropriate paperwork will be given to the employee with in depth
information. Arrington Watkins Architects uses a third party administrator to administer
this plan. All information provided in this manual is subject to change as ordered by
Congress.

8.4 Final Paycheck

Employees who terminate their employment voluntarily will receive their last paycheck on the
next regularly scheduled payday. Employees who are terminated by the firm will receive their
final paycheck within three working days following termination. (Arizona Revised Statute §23-
353) If it is not possible to pick up paychecks in person, arrangements can be made for the
final paycheck to be mailed.

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9. Professional Conduct

9.1 Firm Image

As an employee of Arrington Watkins Architects, you are considered a representative of
our firm. It is expected that you behave in a professional manner when in the presence
of clients and consultants. This should also carry over into the work that you perform.
The reputation and the image of our firm is represented in our work and the people whom
we employee.

9.2 Professional Appearance

It is expected that employees will dress appropriately. Full-time regular employees are entitled
to a clothing allowance. Employees may submit an expense report for expenses related to
maintaining a professional appearance. Employees are eligible for this benefit after the first
90 days of employment.
The annual allowance limits are as follows:
Principal - $500
Associate/Manager - $300
Technical/Administrative - $200

9.3 Client Communications

It is expected that all communications with the clients of Arrington Watkins Architects
will be in the utmost professional, courteous, and respectful manner, whether verbal or
written. Part of our competitive advantage is that we provide superior service, approach
our projects in a professional manner, and are pleasant and easy to work with.

Discuss any issues of concern, contracts, or fees with a Principal or Associate. Do not
air Arrington Watkins’ internal concerns, difficulties, or confidential information with
clients or consultants.

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9.4 Attendance

It is very important that employees have good attendance and show up on time. Habitual
tardiness and absences are not acceptable. Not only does it affect your work but it also affects
the office morale. We work in a team environment and your co-workers need to be able to
depend on you to be here and to be on time.

9.5 Confidential Information

Arrington Watkins Architects uses and maintains confidential and proprietary information in
the course of its business operations. The use of any of this information for other than the
conduct of Arrington Watkins’ business is strictly prohibited. Examples of the firm’s
confidential/proprietary information include designs, drawings, sketches, specifications,
customer and/or contact lists, pricing or other financial information, computer software, data
gathering and retrieval systems, research data, and internal firm reports. In addition, our
clients, consultants, and vendors may entrust us with important and sensitive information
regarding their business. All employees must protect this confidential and proprietary
information and refrain from any unauthorized use or disclosure. In addition, if any employee
learns or suspects that confidential information belonging to the firm, its clients or
consultants is being improperly used, copied or otherwise disclosed, this must be reported
immediately. In the event of termination of employment, the employee must return to the
firm all confidential and proprietary information in the employee’s possession or control,
whether in written, printed or electronic format.

9.6 Moonlighting

No employee shall engage in any activity, business, or employment, either during or after
working hours, which would conflict with Arrington Watkins Architect’s interests or
diminish the ability of the employee to effectively fulfill their responsibilities to Arrington
Watkins Architects. In no case shall employees ever be permitted to engage his or her
time or talents with a firm that competes with Arrington Watkins Architects. Nor shall they
ever be permitted to use Arrington Watkins’ office or of any of Arrington Watkins’
resources, including but not limited to computers, fax machines, e-mail or telephones, to
perform moonlight work.

9.7 Communication

Employees are expected to keep the handling of personal issues on company time to a
minimum.

Employees must save pertinent project-related correspondence with clients and consultants.
This includes correspondence in paper or electronic format. Correspondence will be stored
electronically on the server.

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9.9 Use of Company Name

In general, the company shall be referred to by its full name, Arrington Watkins Architects,
LLC. in all correspondence and documents including: letters, emails, faxes, fee proposals,
and contracts. Abbreviations may be used in meeting minutes, field reports and other
documents where the name appears repeatedly. The first reference to the company shall be
as follows: Arrington Watkins Architects, LLC. (AW). Thereafter the company may be referred
to as AW.

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10. Expenses

10.1 Guidelines for American Express Credit Card Use

• Your American Express card is to be used for business purposes only.

• All travel expenses are to be charged on your American Express card where
American Express is accepted. Where American Express is not accepted, use cash
or your personal credit card and you will be reimbursed when you turn in your
expense report.

• A receipt must be turned in for all travel charges. On each receipt please
indicate the project number and purpose of the expense. If it is a meal receipt, write
the names of all of the people, purpose of expense and what business was
discussed. This information can be written on the back of the receipt.

• Any American Express incentives belong to Arrington Watkins. Other incentives,
such as an Airline’s frequent flyer miles, belong to employees.

• American Express will cover car rental insurance. Please decline extra coverage
from car rental agency.

10.2 Travel Policy

The firm may require that certain employees’ travel out of town for business purposes.
Expenses in connection with this travel will be reimbursed or paid for by the firm.

Employees are expected to spend company money as if it were theirs. Employees will
be frugal when making travel plans. Best efforts will be made to ensure that travel costs
will be kept to a minimum and within our clients’ guidelines for travel cost
reimbursement. These guidelines will be made available to the employee prior to
traveling.

10.3 Petty Cash

The firm keeps a limited amount of petty cash in the office for small expenses. Employees
must provide a receipt with an explanation of the expense in order to receive reimbursements
for expenses through petty cash.

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Notes

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Employee Handbook
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