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Merlin RAMCo, Inc. Employee Handbook Employee Handbook Our Mission: To provide Best-Value ISR solutions in support of America's Warfighter Our Vision: To be the recognized industry leader in ISR-related Operations Support, Training Services and Maintenance Our Values: People -- they are our most important resource Honesty and Integrity Complete and total customer satisfaction Re-Issue Date: 6/1/2014

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Merlin RAMCo, Inc. Employee Handbook

Employee Handbook

Our Mission: To provide Best-Value ISR solutions in support of America's Warfighter

Our Vision: To be the recognized industry leader in ISR-related Operations Support, Training Services and

Maintenance

Our Values: People -- they are our most important resource

Honesty and Integrity Complete and total customer satisfaction

Re-Issue Date: 6/1/2014

Merlin RAMCo, Inc. Employee Handbook

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ABOUT THIS HANDBOOK DISCLAIMER

We prepared this handbook to assist you in finding the answers to many questions that you may have regarding your employment with Merlin RAMCo, Inc. Please take the necessary time to read it.

We do not expect this handbook to answer all of your questions. Your Supervisor and Human Resources also will be a major source of information.

Neither this handbook nor any other verbal or written communication by a management representative, is, nor should it be considered to be, an agreement, contract of employment, express or implied, or a promise of treatment in any particular manner in any given situation. Merlin RAMCo, Inc. adheres to the policy of employment at will, which permits MRI or the employee to terminate the employment relationship at any time, for any reason, with or without cause or notice.

Any modification of at-will status and/or provision of any special arrangement concerning terms or conditions of employment in an individual case or generally is only valid if contained in a writing and signed by the Vice President of Human Resources.

Many matters covered by this handbook, such as benefit plan descriptions, are also described in separate MRI documents. These MRI documents are always controlling over any statement made in this handbook or by any member of management.

This handbook states only general MRI guidelines. MRI may, at any time, in its sole discretion, modify or vary from anything stated in this handbook, with or without notice, except for the rights of the parties to terminate employment at will, which may only be modified by an express written agreement signed by the employee and the Vice President of Human Resources.

This handbook supersedes all prior handbooks.

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Table of ContentsABOUT THIS HANDBOOK / DISCLAIMER ...........................................................................1

Section 1 - Governing Principles of Employment ........................................................................6

1-1. Welcome Statement .........................................................................................................6

1-2. Introductory Statement .....................................................................................................7

1-3. Equal Employment Opportunity .......................................................................................7

1-4. Non-Harassment...............................................................................................................8

1-5. Sexual Harassment ...........................................................................................................8

1-6. Drug and Alcohol-.......................................................................................................... 10

1-7. Drug Testing .................................................................................................................. 10

1-8. Workplace Violence ....................................................................................................... 11

Prohibited Conduct ............................................................................................................ 11

Procedures for Reporting a Threat ..................................................................................... 11

Section 2 - Operational Policies................................................................................................. 13

2-1. Employee Classifications ............................................................................................... 13

2-2. Disability Accommodation ............................................................................................. 14

2-3. Probationary Period ........................................................................................................ 14

2-4. Your Employment Records ............................................................................................ 14

2-5. Working Hours and Schedule ......................................................................................... 15

2-6. Timekeeping Procedures ................................................................................................ 15

2-7. Overtime ........................................................................................................................ 15

2-8. Business Ethics and Conduct .......................................................................................... 16

2-9. Travel and Expense - Business Expense Reimbursement ................................................ 17

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2-10. Safe Harbor Policy for Exempt Employees ................................................................... 17

2-11. Social Security Number Privacy ................................................................................... 18

2-12. Your Paycheck ............................................................................................................. 19

2-13. Salary Administration................................................................................................... 20

2-14. Pay Deductions and Setoffs .......................................................................................... 20

2-15. Compensation .............................................................................................................. 21

2-16. Performance Reviews ................................................................................................... 21

2-17. Record Retention .......................................................................................................... 22

Section 3 - Benefits ................................................................................................................... 23

3-1. Benefits Overview .......................................................................................................... 23

3-2. Holidays ......................................................................................................................... 23

3-3. Paid Time Off (PTO)...................................................................................................... 24

3-4. Lactation Breaks ............................................................................................................ 25

3-5. Workers' Compensation ................................................................................................. 25

3-6. Jury Duty Leave ............................................................................................................. 26

3-7. Bereavement Leave ........................................................................................................ 26

3-8. Voting Leave.................................................................................................................. 27

3-9. Employee Assistance Program ....................................................................................... 27

3-10. Employee Referral Awards........................................................................................... 28

3-11. Educational & Professional Development Reimbursement Program ............................. 28

Section 4 - Leaves of Absence ................................................................................................... 31

4-1. Military Leave ................................................................................................................ 31

4-2. Personal Leave ............................................................................................................... 31

Section 5 - General Standards of Conduct ................................................................................. 33

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5-1. Workplace Conduct ........................................................................................................ 33

5-2. Progressive Discipline .................................................................................................... 34

5-3. Problem Resolution ........................................................................................................ 35

5-4. Punctuality and Attendance ............................................................................................ 36

5-5. Use of Communication and Computer and Email Systems ............................................. 36

5-6. Personal and Company-Provided Portable Communication Devices ............................... 37

5-7. Internet Usage ................................................................................................................ 38

5-8. Social Networking and Blogging .................................................................................... 40

5-9. Use of Phone and Mail Systems ..................................................................................... 41

5-10. Use of Equipment ......................................................................................................... 41

5-11. Inspections ................................................................................................................... 42

5-12. Smoking ....................................................................................................................... 42

5-13. Solicitation and Distribution ......................................................................................... 42

5-14. Confidential Company Information .............................................................................. 43

Non-Disclosure ................................................................................................................. 43

5-15. Outside Employment .................................................................................................... 43

5-16. Conflict of Interest and Business Ethics ........................................................................ 44

5-17. Security Violations and Retribution Policy ................................................................... 45

5-18. Health .......................................................................................................................... 48

5-19. Safety ........................................................................................................................... 49

5-20. Employee Dress and Personal Appearance ................................................................... 49

5-21. Publicity/Statements to the Media ................................................................................ 49

5-22. Suggestions .................................................................................................................. 50

5-23. If You Must Leave Us .................................................................................................. 50

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5-24 Return of Property ......................................................................................................... 50

5-25. A Few Closing Words .................................................................................................. 51

Section 6 – State Mandates ........................................................................................................ 52

6.1 North Carolina ................................................................................................................. 52

North Carolina: School Attendance Leave ......................................................................... 52

General Handbook Acknowledgment ........................................................................................ 53

Receipt of Sexual Harassment Policy ........................................................................................ 55

Receipt of Non-Harassment Policy ............................................................................................ 57

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Section Governing Principles of Employment

1-1. Welcome Statement

For those of you who are commencing employment with Merlin RAMCo, Inc. ("MRI"), on behalf of MRI, let me extend a warm and sincere welcome. We hope you will enjoy your work here. We are glad to have you with us.

For those of you who have been with us, thank you for your past and continued service.

MRI is a Service Disabled Veteran Owned Small Business (SDVOSB) formed with a prime core competency of providing world-class technical and operational Advisory and Assistance Services (A&AS), Training, Operations and Maintenance Services to select customers. MRI is committed to quality and unparalleled customer service in all aspects of our business.

We believe that each employee contributes directly to MRI's growth and success, and we hope you will take pride in being a member of our team.

I extend to you my personal best wishes for your success and happiness here at Merlin RAMCo, Inc. We understand that it is our employees who provide the services that our customers rely upon, and who will grow and enable us to create new opportunities in the years to come.

Robert (Bob) A. Miller, President

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1-2. Introductory Statement

This Employee Handbook is designed to acquaint you with MRI and to provide you with information about working conditions, employee benefits, and some of the policies affecting your employment. You should read, understand, and comply with all provisions of the Employee Handbook. It describes many of your responsibilities as an employee and outlines the programs developed by MRI to benefit you as an employee. One of our objectives is to provide a work environment that is conducive to both personal and professional well-being and growth.

While every attempt has been made to create these personalized policies consistent with federal and state law, if an inconsistency arises the policy(ies) will be enforced consistent with the applicable law.

Failure to abide by MRI Policies may result in disciplinary action up to and including termination of employment or legal action in accordance with MRI Progressive Disciplinary Policy P-01-013.

No Employee Handbook can anticipate every circumstance or question about policy. As MRI continues to grow the need may arise to revise this handbook. MRI reserves the right to revise, supplement, or rescind any policies or portion of the Employee Handbook from time to time as it deems appropriate in its sole and absolute discretion. Employees will, of course, be notified of such changes to the Employee Handbook as they occur.

1-3. Equal Employment Opportunity

Merlin RAMCo, Inc. is an Equal Opportunity Employer that does not discriminate on the basis of actual or perceived race, creed, color, religion, alienage or national origin, ancestry, citizenship status, age, disability or handicap, sex, marital status, veteran status, sexual orientation, genetic information, arrest record, or any other characteristic protected by applicable federal, state or local laws. Our management team is dedicated to this policy with respect to recruitment, hiring, placement, promotion, transfer, training, compensation, benefits, employee activities and general treatment during employment.

MRI will endeavor to make a reasonable accommodation to the known physical or mental limitations of qualified employees with disabilities unless the accommodation would impose an undue hardship on the operation of our business. If you need assistance to perform your job duties because of a physical or mental condition, please let your Supervisor know.

MRI will endeavor to accommodate the sincere religious beliefs of its employees to the extent such accommodation does not pose an undue hardship on MRI's operations. If you wish to request such an accommodation, please speak to your Supervisor.

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Any employee with questions or concerns about any type of discrimination in the workplace is encouraged to bring these issues to the attention of his or her immediate supervisor. Employees may raise concerns and make reports without fear of reprisal. MRI will not tolerate or condone any discriminatory actions and anyone found to be engaging in any type of unlawful discrimination will be subject to disciplinary action in accordance with MRI Progressive Disciplinary Policy, P-01-013.

1-4. Non-Harassment

It is Merlin RAMCo, Inc.'s policy to prohibit intentional and unintentional harassment of any individual by another person on the basis of any protected classification including, but not limited to, race, color, national origin, disability, religion, marital status, veteran status, sexual orientation or age. The purpose of this policy is not to regulate our employees' personal morality, but to ensure that in the workplace, no one harasses another individual.

If you feel that you have been subjected to conduct which violates this policy, you should immediately report the matter to your Supervisor. If you are unable for any reason to contact this person, or if you have not received a satisfactory response within five (5) business days after reporting any incident of what you perceive to be harassment, please contact Senior Management Team Member or Human Resources Manager. If the person toward whom the complaint is directed is one of the individuals indicated above, you should contact any higher-level manager in your reporting hierarchy. Every report of perceived harassment will be fully investigated and corrective action will be taken where appropriate. Violation of this policy will result in disciplinary action, up to and including discharge. All complaints will be kept confidential to the extent possible, but confidentiality cannot be guaranteed. In addition, MRI will not allow any form of retaliation against individuals who report unwelcome conduct to management or who cooperate in the investigations of such reports in accordance with this policy. Employees who make complaints in bad faith may be subject to disciplinary action, up to and including discharge. All employees must cooperate with all investigations.

1-5. Sexual Harassment

The Sexual and Other Unlawful Harassment policy is outlined below. For full policy information, please reference MRI policy P-01-004, Sexual Harassment Policy.

MRI is committed to providing a work environment that is free from all forms of discrimination and conduct that can be considered harassing, coercive, or disruptive, including sexual harassment. Actions, words, jokes, or comments based on an individual's sex, race, color, national origin, age, religion, disability, sexual orientation, or any other legally protected characteristic will not be tolerated.

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Sexual harassment is defined as unwanted sexual advances, or visual, verbal, or physical conduct of a sexual nature. This definition includes many forms of offensive behavior and includes gender-based harassment of a person of the same sex as the harasser. The following is a partial list of sexual harassment examples:

Unwanted sexual advances. Offering employment benefits in exchange for sexual favors. Making or threatening reprisals after a negative response to sexual advances. Visual conduct that includes leering, making sexual gestures, or displaying of sexually

suggestive objects or pictures, cartoons or posters. Verbal conduct that includes making or using derogatory comments, epithets, slurs, or

jokes. Verbal sexual advances or propositions. Verbal abuse of a sexual nature, graphic verbal commentaries about an individual's body,

sexually degrading words used to describe an individual, or suggestive or obscene letters, notes, or invitations.

Physical conduct that includes touching, assaulting, or impeding or blocking movements.

Unwelcome sexual advances (either verbal or physical), requests for sexual favors, and other verbal or physical conduct of a sexual nature constitute sexual harassment when: (1) submission to such conduct is made either explicitly or implicitly a term or condition of employment; (2) submission or rejection of the conduct is used as a basis for making employment decisions; or, (3) the conduct has the purpose or effect of interfering with work performance or creating an intimidating, hostile, or offensive work environment.

If you experience or witness sexual or other unlawful harassment in the workplace, report it immediately to your supervisor. If the supervisor is unavailable or you believe it would be inappropriate to contact that person, you should immediately contact the Human Resources Manager or any other member of the Senior Management Team. You can raise concerns and make reports without fear of reprisal or retaliation.

All allegations of sexual harassment will be quickly and discreetly investigated. All employees are required to comply with a sexual harassment investigation when their assistance is requested. To the extent possible, your confidentiality and that of any witnesses and the alleged harasser will be protected against unnecessary disclosure. When the investigation is completed, you will be informed of the outcome of the investigation.

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Any supervisor or manager who becomes aware of possible sexual or other unlawful harassment must immediately advise the Department Manager and the Vice President of Human Resources so that the incident, behavior or environment can be investigated in a timely and confidential manner. Upon completion of the investigation, if necessary, corrective measures will be taken. These measures may include, but are not limited to: training, counseling, warning, suspension, or immediate dismissal, in accordance with MRI Progressive Disciplinary Policy P-01-013. Anyone, regardless of position or title, found through investigation to have engaged in improper harassment will be subject to discipline in accordance with MRI Progressive Disciplinary Policy P-01-013.

MRI prohibits any form of discipline or retaliation for reporting in good faith the incidents of harassment in violation of this policy, pursuing any such claim or cooperating in the investigation of such reports.

1-6. Drug and Alcohol-

Please reference MRI policy P-01-003, Drug & Alcohol.

1-7. Drug Testing

MRI is committed to providing a safe, efficient, and productive work environment for all employees. Using or being under the influence of drugs on the job may pose serious safety and health risks. To help ensure a safe and healthful working environment, job applicants and new employees must complete a mandatory drug test at commencement of employment and may be asked to provide body substance samples (such as urine and/or blood) to determine the illicit or illegal use of drugs at any time thereafter. These additional tests may occur at any time and on a random basis.

MRI employees conduct work for Government contracts and the illegal use of illegal substances could jeopardize the company or your security clearance and could result in termination of our contracts. Use of drugs or other illegal substances will not be tolerated and will result in disciplinary action up to and including termination of employment. Pursuant to company contracts, employees may be required to take unannounced or periodic drug tests. Positive tests could result in disciplinary action up to and including termination of employment from MRI.

Copies of the drug testing policy will be provided to all employees. Questions concerning this policy or its administration should be directed to the Human Resources Manager.

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1-8. Workplace Violence

Merlin RAMCo, Inc. is strongly committed to providing a safe workplace. The purpose of this policy is to minimize the risk of personal injury to employees and damage to MRI and personal property.

We do not expect you to become an expert in psychology or to physically subdue a threatening or violent individual. Indeed, we specifically discourage you from engaging in any physical confrontation with a violent or potentially violent individual. However, we do expect and encourage you to exercise reasonable judgment in identifying potentially dangerous situations.

Experts in the mental health profession state that prior to engaging in acts of violence, troubled individuals often exhibit one or more of the following behaviors or signs: over-resentment, anger and hostility; extreme agitation; making ominous threats such as bad things will happen to a particular person, or a catastrophic event will occur; sudden and significant decline in work performance; irresponsible, irrational, intimidating, aggressive or otherwise inappropriate behavior; reacting to questions with an antagonistic or overtly negative attitude; discussing weapons and their use, and/or brandishing weapons in the workplace; overreacting or reacting harshly to changes in MRI policies and procedures; personality conflicts with co-workers; obsession or preoccupation with a co-worker or Supervisor; attempts to sabotage the work or equipment of a co-worker; blaming others for mistakes and circumstances; demonstrating a propensity to behave and react irrationally

Prohibited Conduct

Threats, threatening language or any other acts of aggression or violence made toward or by any MRI employee WILL NOT BE TOLERATED. For purposes of this policy, a threat includes any verbal or physical harassment or abuse, any attempt at intimidating or instilling fear in others, menacing gestures, flashing of weapons, stalking or any other hostile, aggressive, injurious or destructive action undertaken for the purpose of domination or intimidation.

Procedures for Reporting Threat

All potentially dangerous situations, including threats by co-workers, should be reported immediately to any member of management with whom you feel comfortable. Reports of threats may be maintained confidential to the extent maintaining confidentiality does not impede our ability to investigate and respond to the complaints. All threats will be promptly investigated. All employees must cooperate with all investigations. No employee will be subjected to retaliation, intimidation or disciplinary action as a result of reporting a threat in good faith under this policy.

If MRI determines, after an appropriate good faith investigation, that someone has violated this policy, MRI will take swift and appropriate corrective action.

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If you are the recipient of a threat made by an outside party, please follow the steps detailed in this section. It is important for us to be aware of any potential danger in our offices. Indeed, we want to take effective measures to protect everyone from the threat of a violent act by an employee or by anyone else.

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Section Operational Policies

2-1. Employee Classifications

It is the intent of MRI to clarify the definitions of employment classifications so that employees understand their employment status and benefit eligibility. These classifications do not guarantee employment for any specified period of time or prevent changes in classifications if circumstances warrant a change. Accordingly, the right to terminate the employment relationship at will at any time is retained by both the employee and MRI.

Each employee is designated as either NON-EXEMPT or EXEMPT from federal and state wage and hour laws. NON-EXEMPT employees are entitled to overtime pay under the specific provisions of federal and state laws. EXEMPT employees are excluded from specific provisions of federal and state wage and hour laws. An employee's EXEMPT or NON-EXEMPT classification may be changed only upon written notification by the Human Resources Manager. Employee questions about classification designations should be discussed with his or her supervisor or Human Resources.

REGULAR FULL-TIME employees are those who are not in a temporary status and who are regularly scheduled to work MRI's full-time schedule throughout the year. Under the terms and conditions of the Fair Labor Standards Act, a regular full-time employee is one who works forty (40) or more hours per week.

SCHOOL HOUSE ROTATIONAL employees are those who work rotational schedules throughout the year but spend a significant part of the year not at work. Working three months on a contract then not working for three months is an example of school house rotational employment status. School House Rotational employees are considered “active” employees and receive all legally mandated benefits (such as Social Security, 401K participation and workers' compensation insurance). Employees should refer questions about their rotational status to their supervisor or the HR Department.

PART-TIME employees are those who are not assigned to a temporary status and who work continuously for a specified number of hours per week which is less than a regular schedule of forty (40) or more hours per week. Part-time employees are not entitled to company benefits, such as MRI health-care or insurance coverage premium payments and paid time off. Part-time employees receive all legally mandated benefits (such as Social Security, 401K participation and workers' compensation insurance).

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2-2. Disability Accommodation

MRI is committed to complying fully with the Americans with Disabilities Act (ADA) and applicable state law, and to ensure equal opportunity in employment for qualified persons with disabilities. All employment practices and activities are conducted on a non-discriminatory basis.

Hiring procedures are designed to provide persons with disabilities meaningful employment opportunities. Pre-employment inquiries are made only regarding an applicant's ability to perform the duties of the position.

Reasonable accommodations for qualified individuals with known disabilities will be made unless to do so would be an undue hardship. All employment decisions are based on the merits of the situation in accordance with defined criteria, not any disability status of the individual.

Qualified individuals with disabilities are entitled to equal pay and other forms of compensation (or changes in compensation) for equal job position as well as job assignments, classifications, organizational structures, position descriptions, lines of progression, and seniority lists. Leave of all types will be available to all employees on an equal basis.

MRI is also committed to not discriminating against qualified employees or applicants because they are related to or associated with a person with a disability. MRI will follow any state or local law that provides individuals with disabilities greater protection than the ADA.

This policy is neither exhaustive nor exclusive. MRI is committed to taking all other actions necessary to ensure equal employment opportunity for persons with disabilities in accordance with the ADA and all other applicable federal, state, and local laws.

2-3. Probationary Period

Your first 90 calendar day period of employment is a time for you to get acquainted with the Company and our operations and for us to get to know you. It is especially important that you make your supervisor aware of any questions or problems you may have during this period. As explained throughout this handbook, you must satisfactorily complete this probationary period before being considered for continued employment.

2-4. Your Employment Records

In order to obtain your position, you provided us with personal information, such as your address and telephone number. This information is contained in your personnel file.

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Please keep your personnel file up to date by informing the HR Department and Payroll of any changes. Also, please inform the HR Department and Payroll of any specialized training or skills you may acquire in the future, as well as any changes to any required visas. Unreported changes of address, marital status, etc. can affect your withholding tax and benefit coverage. Further, an "out of date" emergency contact or an inability to reach you in a crisis could cause a severe health or safety risk or other significant problem.

2-5. Working Hours and Schedule

The Company's normal working hours vary from location to location, check with your supervisor for your work hours. Various other schedules may exist.

2-6. Timekeeping Procedures

Employees must record their actual time worked for payroll and benefit purposes. Non-exempt employees must record the time work begins and ends, as well as the beginning and ending time of any departure from work for any non-work-related reason, on forms as prescribed by management.

Altering, falsifying or tampering with time records is prohibited and subjects the employee to discipline, up to and including discharge.

Exempt employees are required to record their daily work attendance and report full days of absence from work for reasons such as leaves of absence, paid time off or personal business.

Non-exempt employees may not start work until their scheduled starting time.

It is your responsibility to sign your time record to certify the accuracy of all time recorded. Any errors in your time record should be reported immediately to your Supervisor, who will attempt to correct legitimate errors.

2-7. Overtime

When operating requirements or other needs cannot be met during regular working hours, employees will be required to work overtime assignments per business needs.

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All non-exempt employees’ overtime work must receive the supervisor's prior authorization. Overtime assignments will be distributed as equitably as practical to all employees qualified to perform the required work.

Overtime compensation is paid to all non-exempt employees in accordance with federal and state wage and hour restrictions. Overtime pay is based on actual hours worked. Time off, paid time off or any leave of absence will not be considered hours worked for purposes of performing overtime calculations.

Failure to work scheduled overtime or overtime worked without prior authorization from the supervisor may result in disciplinary action in accordance with MRI Progressive Disciplinary Policy P-01-013.

For purposes of calculating overtime for non-exempt employees, the workweek begins at 12 a.m. on Sunday and ends 168 hours later at 12 a.m. on the following Sunday.

2-8. Business Ethics and Conduct

The successful business operation and industry-leading reputation of MRI is vital to MRI’s continued success and has been built upon the principles of fair dealing and ethical conduct of our employees. Our reputation for integrity and excellence requires careful observance of the spirit and letter of all applicable laws, regulations and fair dealings, as well as a scrupulous regard for the highest standards of conduct and personal integrity.

The continued success of MRI is dependent upon our customers' trust and we are dedicated to preserving that trust. Employees owe a duty to MRI and its customers to act in a way that will merit trust and confidence. MRI will comply with all applicable laws and regulations and expects its directors, officers, and employees to conduct business in accordance with the letter, spirit, and intent of all relevant laws and to refrain from any illegal, dishonest, or unethical conduct.

In general, the use of good judgment, based on high ethical principles, will guide you with respect to lines of acceptable conduct. If a situation arises in which it is difficult to determine the proper course of action, the matter should be discussed openly with your immediate supervisor and if necessary, with the Department Manager or Human Resources for advice and consultation.

Compliance with this policy of business ethics and conduct is the responsibility of every MRI employee. Disregarding or failing to comply with this standard of business ethics and conduct could lead to disciplinary action in accordance with Progressive Disciplinary Policy, P-01-013.

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2-9. Travel and Expense Business Expense Reimbursement

Employees may be reimbursed for reasonable approved expenses incurred, in accordance with the Joint Travel Regulations, in the course of business. These expenses must be approved by your Supervisor, and may include air travel, hotels, motels, meals, cab fare, rental vehicles, or gas and car mileage for personal vehicles. All expenses incurred should be submitted to the Accounting Department along with the receipts in a timely manner.

Employees are expected to exercise restraint and good judgment when incurring expenses. You should contact your Supervisor in advance if you have any questions about whether an expense will be reimbursed.

Please reference MRI policy P-01-005, Travel & Expense Policy.

Commuting Time

Under the Portal to Portal Act, travel from home to work and from work to home is generally non-compensable. However, if a non-exempt employee regularly reports to a worksite near his/her home, but is required to report to a worksite farther away than the regular worksite, the additional time spent traveling is compensable.

If compensable travel time results in more than 40 hours worked by a non-exempt employee, the employee will be compensated at an overtime rate of one and one-half times the regular rate.

To the extent that applicable state law provides greater benefits, state law applies.

2-10. Safe Harbor Policy for Exempt Employees

It is our policy and practice to accurately compensate employees and to do so in compliance with all applicable state and federal laws. To ensure that you are paid properly and that no improper deductions are made, you must review your pay stubs promptly to identify and report all errors.

If you are classified as an exempt salaried employee, you will receive a salary which is intended to compensate you for all hours you may work for the Company. This salary will be established at the time of hire or when you become classified as an exempt employee. While it may be subject to review and modification from time to time, such as during salary review times, the salary will be a predetermined amount that will not be subject to deductions for variations in the quantity or quality of the work you perform.

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Under federal and state law, your salary is subject to certain deductions. For example, unless state law requires otherwise, your salary can be reduced for the following reasons:

Full-day absences for personal reasons. Full-day absences for sickness or disability. Full-day disciplinary suspensions for infractions of our written policies and procedures. Family and Medical Leave absences (either full- or partial-day absences). To offset amounts received as payment for jury and witness fees or military pay. The first or last week of employment in the event you work less than a full week. Any full work week in which you do not perform any work.

Your salary may also be reduced for certain types of deductions such as your portion of health, dental or life insurance premiums; state, federal or local taxes; social security; or voluntary contributions to a 401(k) or pension plan.

In any work week in which you performed any work, your salary will not be reduced for any of the following reasons:

Partial day absences for personal reasons, sickness or disability. Your absence on a day because your employer has decided to close a facility on a scheduled work day. Absences for jury duty, attendance as a witness, or military leave in any week in which you have performed any work. Any other deductions prohibited by state or federal law.

However, unless state law provides otherwise, deductions may be made to your accrued leave for full- or partial-day absences for personal reasons, sickness or disability.

If you believe you have been subject to any improper deductions, you should immediately report the matter to your supervisor. If the supervisor is unavailable or if you believe it would be inappropriate to contact that person (or if you have not received a prompt and fully acceptable reply), you should immediately contact the Payroll Manager or any other supervisor in the Company with whom you feel comfortable.

2-11. Social Security Number Privacy

Officers and employees are permitted to access and use certain personal information, such as Social Security Numbers (SSN), only as necessary and appropriate for such persons to carry out their assigned tasks for MRI and in accordance with MRI’s policy.

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Documents containing sensitive personal information such as SSN’s are stored in appropriate locked containers accessed only by authorized personnel.

The unauthorized access, viewing, use, disclosure, or the intentional public display of such information and the unauthorized removal of documents from MRI’s premises that contain social security number information is prohibited and can result in disciplinary action in accordance with MRI Progressive Disciplinary Policy P-01-013.

If you come into contact with Social Security Numbers or other sensitive personal information without authorization from MRI or under circumstances outside of your assigned tasks, you may not use or disclose the information further, but must contact your supervisor and turn over to him or her all copies of the information in whatever form.

When necessary, documents containing social security information will be properly destroyed through shredding or other means prior to disposal to ensure confidential social security information is not disclosed.

For more information about whether and under what circumstances you may have access to this information contact your supervisor.

2-12. Your Paycheck

You will be paid bi-weekly on every other Thursday for all the time you have worked during the previous pay period.

Your payroll stub itemizes deductions made from your gross earnings. By law, MRI is required to make deductions for Social Security, federal income tax and any other appropriate taxes. These required deductions also may include any court-ordered garnishments. Your payroll stub will also differentiate between regular pay received and overtime pay received.

In the event that a regularly scheduled payday falls on a day off such as a holiday, employees will receive pay on the last day of work before the regularly scheduled payday.

If a regular payday falls during an employee's paid time off, the employee's paycheck will be available upon his or her return from paid time off, if not direct deposited.

If you believe there is an error in your pay, bring the matter to the attention of your Supervisor or Human Resources immediately so MRI can resolve the matter quickly and amicably.

Your paycheck will be given only to you, unless you request that it be mailed, or authorize in writing another person to accept your check for you.

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Employees are encouraged to have their pay directly deposited into their bank accounts by providing advance written authorization to MRI. Employees will have access to an itemized statement of wages when MRI makes direct deposits. All paycheck details can be viewed on-line at www.myadpresource.com.

2-13. Salary Administration

The salary administration program at MRI was created to achieve consistent pay practices, comply with federal and state laws, mirror our commitment to Equal Employment Opportunity, and offer competitive salaries within our labor market. Because recruiting and retaining talented employees is our goal and critical to our success, MRI is committed to paying its employees equitable wages that reflect the requirements and responsibilities of their positions and are comparable to the pay received by similarly situated employees in other organizations in the area.

Compensation for every position is determined by several factors, including the essential duties and responsibilities of the job and salary survey data on pay practices of other employers. MRI periodically reviews its salary administration program and restructures it as necessary.

Employees should bring their pay-related questions or concerns to the attention of their immediate supervisors or Human Resources, who are responsible for the fair administration of pay practices.

2-14. Pay Deductions and Setoffs

The law requires that MRI make certain deductions from every employee's compensation. Among these are applicable federal, state, and local income taxes. MRI also must deduct Social Security taxes on each employee's earnings up to a specified limit that is called the Social Security "wage base." MRI matches the amount of Social Security taxes paid by each employee.

Eligible employees may voluntarily authorize deductions from their paychecks to cover the cost of any voluntary programs offered by MRI.

Pay setoffs are pay deductions taken by MRI, usually to help pay off a debt or obligation to MRI or others and will be made where applicable in compliance with federal and state law.

If you have questions concerning why deductions were made from your paycheck or how they were calculated, your supervisor can assist in having your questions answered or you may contact the Payroll Department directly.

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2-15. Compensation

It is the practice and policy of MRI to accurately compensate employees and to do so in compliance with all applicable state and federal laws.

Review Your Pay Check

We make every effort to ensure our employees are paid correctly. Occasionally, however, inadvertent mistakes can happen. When mistakes do happen and are called to our attention, we will promptly make any corrections necessary. Please review your pay check when you receive it to make sure it is correct. You may review your pay information at www.myadpresource.com. If you believe a mistake has occurred, or you have any questions please use the reporting procedure outlined below.

If you are classified as a non-exempt employee, you must maintain a record of the total hours you work each day. You must accurately record your hours in accordance with MRI’s time keeping procedures. Your time record must accurately reflect all regular and overtime hours worked, any absences, late arrivals, early departures, and meal breaks. Any employee who fails to report or inaccurately reports any hours worked will be subject to disciplinary action in accordance with MRI Progressive Disciplinary Policy P-01-013.

It is a violation of Government regulations and company policy for any employee to falsify or alter his or her or another employee’s time. It is also a serious violation of Government regulations and company policy for any employee or manager to instruct another employee to incorrectly or falsely report hours. If any manager or employee instructs you to: 1) incorrectly or falsely under or over report your hours worked; or 2) alter another employee’s time records to inaccurately or falsely report that employee’s hours worked, you should report it immediately to Human Resources.

It is the responsibility of each employee to document hours worked every day in his or her “ClickTime” time management account.

2-16. Performance Reviews

Supervisors and employees are strongly encouraged to discuss job performance and goals on an informal, day-to-day basis. Annual formal performance evaluations are conducted to provide both supervisors and employees the opportunity to discuss job tasks, identify and correct weaknesses, encourage and recognize strengths, and discuss positive, purposeful approaches for meeting goals.

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2-17. Record Retention

MRI acknowledges its responsibility to preserve information relating to litigation, audits and investigations. Failure on the part of employees to follow this policy can result in possible civil and criminal sanctions against MRI and its employees and possible disciplinary action against responsible individuals (up to and including termination of employment). Each employee has an obligation to contact the Human Resources Manager to inform them of a potential or actual litigation, external audit, investigation or similar proceeding involving MRI that may have an impact on record retention protocols.

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Section Benefits

3-1. Benefits Overview

Eligible employees at Merlin RAMCo, Inc. are provided a wide range of benefits. A number of the programs (such as Social Security, workers' compensation, state disability, and unemployment insurance) cover all employees in the manner prescribed by law.

Benefits eligibility is dependent upon a variety of factors, including employee classification. Human Resources can identify the programs for which you are eligible. Details of many of these programs can be found elsewhere in the employee handbook.

If you have any questions regarding your benefits, please contact the Human Resources Manager.

The following benefit programs are available to eligible employees on the first day of employment:

Medical & Prescription drug Insurance Dental Insurance Vision Care Insurance Life Insurance Supplemental Life Insurance Flexible Spending Accounts Accidental Death and Dismemberment Insurance Long-Term Disability Short-Term Disability

The following benefit programs are available to eligible employees the first day of the following quarter following their start date:

401(k) Savings Plan

3-2. Holidays

Full-time employees will be paid for the ten (10) holidays. The actual days may vary year to year and are published on the annual MRI Operating Calendar.

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MRI will grant paid holiday time off to all eligible full-time employees. Holiday pay will be calculated based on the employee's straight-time pay rate (as of the date of the holiday).

To be eligible for holiday pay, employees must work the last scheduled day immediately preceding and the first scheduled day immediately following the holiday.

If a recognized holiday falls during an eligible employee's paid absence (such as paid time off), the employee will be paid holiday pay and their absence will not be charged for that day.

If eligible non-exempt employees work on a recognized holiday, they will receive eight (8) hours paid time off within the following (60) days. This time is to be scheduled with their supervisor and scheduled around customer needs.

Paid time off for holidays will not be counted as hours worked for the purposes of determining overtime.

3-3. Paid Time Off (PTO)

We know how hard you work and recognize the importance of providing you with time for rest and relaxation. We fully encourage you to get this rest by taking your Paid Time off (PTO).

The purpose of Paid Time off (PTO) is to provide employees with flexible time off from work that can be used for such needs as vacation, personal or family illness, doctor appointments, school activities, volunteerism and other activities of the employee’s choice.

PTO will begin accruing on the first of the month following your date of hire. PTO accrues on a pro-rata basis throughout the year. PTO accrues based on your terms of hire and years of service. For example if your PTO accrual is 15 days per year, you will accrue10 hours per month.

Annual PTO accrual will increase by five days after 5, 10, and 15 years of service. For example an employee originally hired with a 15 day annual PTO accrual will receive a 20 day PTO accrual starting on January 1st, following his or her 5 year anniversary.

Eligible employees accrue PTO up to a cap of 1.5 times the maximum yearly accrual. At that point, the accrual stops until banked PTO is used. For example, if the maximum PTO accrual for a year is 15 days, an employee will stop accruing PTO once the employee has banked 22.5 days.

PTO does not accrue when an employee is on a leave of absence such as a personal leave, Short Term Disability, Long Term Disability, or Worker’s Compensation.

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Every effort will be made to grant PTO preference, consistent with our operating schedule. However, if several people request the same period of time off, MRI reserves the right to choose who may take PTO during that period. Individuals with the longest length of service generally will be given preference. PTO requests must be submitted to your manager at least two (2) weeks in advance of your requested dates.

PTO may be used in one (1) hour increments.

All accrued, unused PTO is paid out upon separation.

Please Reference MRI policy P-01-006 for full policy information.

3-4. Lactation Breaks

MRI will provide a reasonable amount of break time to accommodate an employee desiring to express breast milk for the employee's infant child, in accordance with and to the extent required by applicable law. The break time, if possible, must run concurrently with rest and meal periods already provided to the employee. If the break time cannot run concurrently with rest and meal periods already provided to the employee, the break time will be unpaid, subject to applicable law.

MRI will make reasonable efforts to provide employees with the use of a room or location other than a toilet stall for the employee to express milk in private. This location may be the employee's private office, if applicable. MRI may not be able to provide additional break time if doing so would seriously disrupt the Company's operations, subject to applicable law. Please consult the Human Resources Department if you have questions regarding this policy.

Please advise management if you need break time and an area for this purpose. Employees will not be discriminated against or retaliated against for exercising their rights under this policy.

3-5. Workers' Compensation

MRI provides a comprehensive workers' compensation insurance program at no cost to employees. This program covers any injury or illness sustained in the course of employment that requires medical, surgical, or hospital treatment.

Employees who sustain work-related injuries or illnesses should inform their supervisor immediately. No matter how minor an on-the-job injury may appear, it is important and the law requires that it be reported immediately. This will enable an eligible employee to qualify for coverage as quickly as possible.

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Neither MRI nor the insurance carrier will be liable for the payment of workers' compensation benefits for injuries that occur during an employee's off-duty time.

3-6. Jury Duty Leave

All full-time employees who have been employed for at least three (3) months are eligible to request salary benefits in the event of a summons to Jury Duty.

Policy:

a) Employees called to jury duty must submit a copy of the summons to their supervisor and Human Resources as soon as possible after receipt of the summons.

b) Employees will be paid their regular salary during the absence mandated by Jury Duty, less any compensation for serving. Employee must submit the Jury Duty pay stub immediately upon receipt.

c) Jury Duty differential salary shall be payable for a maximum period of two (2) weeks during any fifty-two (52) week period.

d) All regular full-time employees will continue to accrue vacation and sick/personal time during the absence.

e) The employee’s benefits will remain in effect during the jury duty.

Upon completing the jury duty, the employee shall report to work at the beginning of the next scheduled work period. If jury duty does not require the full work period, the employee shall report to work upon completing jury duty for that day.

3-7. Bereavement Leave

All employees who have been employed at least twelve (12) months, and who worked at least 1,250 hours during the twelve months prior to the leave request are eligible for Bereavement Pay in the event of a death in their immediate family. Immediate family is defined as:

Parent Grandparent Parent In-Law Brother Sister Spouse Child

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Bereavement pay shall encompass a period of Three (3) days. Should additional time off be required, a request must be made in writing to the employees supervisor or an officer of the company. Either the employee’s supervisor or MRI officer must approve of the additional time off.

Any additional time off, if granted, should be taken from one of the following options:

Paid Time off allowance Unpaid time

3-8. Voting Leave

In the event an employee does not have sufficient time outside of working hours to vote in a statewide election, if required by state law, the employee may take off enough working time to vote. Such time will be paid if required by state law. This time should be taken at the beginning or end of the regular work schedule. Where possible, your Supervisor should be notified at least two days prior to the voting day.

3-9. Employee Assistance Program

MRI cares about the health and well-being of its employees and recognizes that a variety of problems can disrupt their personal and work lives. Although employees may solve their problems either on their own or with the help of family and friends, sometimes employees need professional assistance and advice.

Through the Employee Assistance Program (EAP), MRI provides confidential access to professional counseling services for help in confronting personal problems such as alcohol and other substance abuse, marital and family difficulties, financial or legal troubles, and emotional distress. The EAP is available to all employees and their immediate family members offering problem assessment, short-term counseling, and referral to appropriate community and private services.

The EAP is strictly confidential and is designed to safeguard the employees' privacy and rights. Information given to the EAP counselor may be released only if requested by the employee in writing. All counselors are guided by a Professional Code of Ethics.

Personal information concerning employee participation in the EAP is maintained in a confidential manner. No information related to an employee's participation in the program is entered into the personnel file. Note, this policy does not exempt any MRI employee from Standard Form 86, Questionnaire for National Security Positions, self-disclosure.

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There is no cost for employees to consult with an EAP counselor. If further counseling is necessary, the EAP counselor will outline community and private services available. The counselor will also let employees know whether any costs associated with private services may be covered by their health insurance plan. Costs that are not covered are the responsibility of the employee.

Minor concerns can become major problems if you ignore them. No issue is too small or too large, and a professional counselor is available to help you when you need it. Call the EAP at (888) 231-7015 to contact an EAP counselor 24 hours a day, 7 days a week.

3-10. Employee Referral Awards

The Employee Referral Award Program is outlined below. For fully policy information, please reference MRI policy P-01-002, Employee Referral Award Program

MRI sponsors an Employee Referral Award Program to enhance our candidate base by encouraging employees to refer qualified candidates for consideration. Employees will be financially rewarded for referrals that result in the selection of a candidate for eligible employment.

Referral bonuses will be paid to employees who follow MRI referral process. Employees must submit the referenced resume prior to the candidate’s first interview or further Human Resource action, or the employee may direct the candidate to apply through the internet application process. The candidate must remain employed for at least 90 days before a bonus will be paid. The referring employee must be on the active payroll at the time the bonus is to be paid. Applications and resumes submitted through the referral program will be retained and eligible for bonus for a period of one year.

3-11. Educational Professional Development Reimbursement Program

MRI feels that an Education Reimbursement Program is an effective way to maintain a world class work force while fostering employee job satisfaction, improve productivity and contribute to the overall success of our business. MRI will reimburse tuition expenses (including fees, books or supplies) paid to accredited schools, colleges and universities, as set forth in this policy.

Tuition for courses will be reimbursed up to a maximum of $4,000.00 per year. MRI will reimburse employees at the conclusion of a successfully completed course, for a “C” grade or better.

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To be eligible for tuition reimbursement under this policy an employee must:

Be a full-time employee Have completed (6) months of service Be on the payroll when the course is completed

Certificate, Associates, Bachelors and Masters Degree programs will be reimbursed if they are business or job related. All courses, required and elective, which are related to an employee’s work or which lead to a business-related or job-related degree will be reimbursed. MRI Human Resources Department will determine whether a degree program or course is business or job related.

Employees must obtain pre-approval for tuition reimbursement under this policy. To do so, employees must complete and return to the Human Resources Department a "Request for Educational Reimbursement" form F-01-027 (the form can be obtained from the Human Resources Department). If and when the course is pre-approved, this form will also serve as a request for payment form at the conclusion of the course.

Upon completion of the pre-approved course, the employee must submit a MRI Expense Report and a copy of the "Request for Educational Reimbursement" form to the Human Resources Department, along with an official transcript of grades and proof of payment. Proof of payment can be established by either a school receipt or a copy of a canceled check (front and back).

In addition to continuing education, MRI fosters employee development through the Professional Enhancement Reimbursement program. MRI will reimburse relevant enhancement expenses including conference or training attendance fees, travel and per diem expenses. Reimbursement cannot exceed the $3,000 annual limit. To be eligible for Professional Enhancement Reimbursement, an employee must:

Be a full-time employee Have completed (6) months of service Be on the payroll when the course is completed

The Human Resources Department will determine the eligibility of the request. Attendance, Travel and per diem are reimbursable. This professional enhancement must be non-interfering with your job and approved by your site Commander or Supervisor.

Employees must obtain pre-approval for professional development under this policy. To do so, employees must complete and return to the Human Resources Department a "Request for Professional Development Reimbursement" form F-01-028 (the form can be obtained from the Human Resources Department). If and when the course/training is pre-approved, this form will also serve as a request for payment form at the conclusion of the course/training.

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Upon completion of the pre-approved course/training, the employee must submit a MRI Expense Report and a copy of the "Request for Professional Development Reimbursement" form to the Human Resources Department, along with an official certificate or training confirmation and proof of payment. Proof of payment can be established by either a training receipt or a copy of a canceled check (front and back).

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Section Leaves of Absence

4-1. Military Leave

If you are called into active military service or you enlist in the uniformed services, you will be eligible to receive an unpaid military leave of absence. To be eligible for military leave, you must provide management with advance notice of your service obligations unless you are prevented from providing such notice by military necessity or it is otherwise impossible or unreasonable for you to provide such notice. Provided your absence does not exceed applicable statutory limitations, you will retain reemployment rights and accrue seniority and benefits in accordance with applicable federal and state laws. Please ask management for further information about your eligibility for Military Leave.

If you are required to attend yearly Reserves or National Guard duty, you can apply for an unpaid temporary military leave of absence not to exceed the number of days allowed by law (including travel). You should give management as much advance notice of your need for military leave as possible so that we can maintain proper coverage while you are away.

4-2. Personal Leave

If you are ineligible for any other MRI leave of absence, MRI, under certain circumstances, may grant you a personal leave of absence without pay. A written request for a personal leave should be presented to management at least three (3) weeks before the anticipated start of the leave. If the leave is requested for medical reasons and you are not eligible for leave under the federal Family and Medical Leave Act (FMLA) or any state leave law, medical certification also must be submitted. Your request will be considered on the basis of staffing requirements, customer needs and the reasons for the requested leave, as well as your performance and attendance records. Normally, a leave of absence will be granted for a period of up to six (6) weeks. However a personal leave may be extended if, prior to the end of your leave, you submit a written request for an extension to management and the request is granted. During your leave, you will not earn vacation, personal days or sick days. We will continue your health insurance coverage during your leave if you submit your share of the monthly premium payments to MRI in a timely manner, subject to the terms of the plan documents.

When you anticipate your return to work, please notify management of your expected return date. This notification should be made at least one week before the end of your leave.

Upon completion of your personal leave of absence, MRI will attempt to return you to your original job, or to a similar position, subject to prevailing business considerations. Reinstatement, however, is not guaranteed.

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Failure to advise management of your availability to return to work, failure to return to work when notified, or your continued absence from work beyond the time approved by MRI will be considered a voluntary resignation of your employment.

Personal leave runs concurrently with any MRI-provided Short-Term Disability Leave of Absence

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Section General Standards of Conduct

5-1. Workplace Conduct

Merlin RAMCo, Inc. endeavors to maintain a positive work environment. Each employee plays a role in fostering this environment. Accordingly, we all must abide by certain rules of conduct, based on honesty, common sense and fair play.

Because everyone may not have the same idea about proper workplace conduct, it is helpful to adopt and enforce rules all can follow. Unacceptable conduct may subject the offender to disciplinary action, up to and including discharge, in MRI's sole discretion. The following are examples of some, but not all, conduct which can be considered unacceptable:

1. Obtaining employment on the basis of false or misleading information.

2. Stealing, removing or defacing Merlin RAMCo, Inc. property or a co-worker's property, and/or disclosure of confidential information.

3. Completing another employee's time records.

4. Violation of safety rules and policies.

5. The unlawful or unauthorized use, abuse, solicitation, distribution, theft, possession, transfer, purchase, or sale of drugs, drug paraphernalia or alcohol by an individual anywhere on Company premises, while on Company business (whether or not on Company premises) or while representing the Company or reporting to work or remaining on duty after using drugs or alcohol in any amount that adversely affects the employee’s ability to perform the functions of the job. Please refer to your Company’s specific policy (if any) for additional information.

6. Fighting, threatening or disrupting the work of others or other violations of Merlin RAMCo, Inc.'s Workplace Violence Policy.

7. Failure to follow lawful instructions of a supervisor.

8. Failure to perform assigned job duties.

9. Violation of the Punctuality and Attendance Policy, including but not limited to irregular attendance, habitual lateness or unexcused absences.

10. Gambling on MRI property.

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11. Willful or careless destruction or damage to Company assets or to the equipment or possessions of another employee.

12. Wasting work materials.

13. Performing work of a personal nature during working time.

14. Violation of the Solicitation and Distribution Policy.

15. Violation of Merlin RAMCo, Inc.'s Harassment or Equal Employment Opportunity Policies.

16. Violation of the Communication and Computer Systems Policy.

17. Unsatisfactory job performance.

18. Any other violation of Company policy.

Obviously, not every type of misconduct can be listed. Note that all employees are employed at-will, and Merlin RAMCo, Inc. reserves the right to impose whatever discipline it chooses, or none at all, in a particular instance. MRI will deal with each situation individually and nothing in this handbook should be construed as a promise of specific treatment in a given situation. However, Merlin RAMCo, Inc. will endeavor to utilize progressive discipline but reserves the right in its sole discretion to terminate an employee at any time for any reason.

The observance of these rules will help to ensure that our workplace remains a safe and desirable place to work.

5-2. Progressive Discipline

The Progressive Discipline policy is outlined below. For full policy information, please reference MRI Policy P-01-013, Progressive Disciplinary Policy

The purpose of this policy is to state MRI's position on administering equitable and consistent discipline for unsatisfactory conduct in the workplace. The best disciplinary measure is the one that does not have to be enforced and comes from good leadership and fair supervision at all employment levels.

MRI's own best interest lies in ensuring fair treatment of all employees and in making certain that disciplinary actions are prompt, uniform, and impartial. The major purpose of any disciplinary action is to correct the problem, prevent recurrence, and prepare the employee for satisfactory service in the future.

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Although employment with MRI is based on mutual consent and both the employee and MRI have the right to terminate employment at will, with or without cause or advance notice, MRI may use progressive discipline at its discretion, and in accordance with its policy.

By using progressive discipline, we hope that most employee problems can be corrected at an early stage, benefiting both the employee and MRI.

5-3. Problem Resolution

MRI is committed to all employees. Part of this commitment is encouraging an open and frank atmosphere in which any problem, complaint, suggestion, or question receives a timely response from the company's supervisors and management.

MRI strives to ensure fair treatment of all employees. Supervisors, managers, and employees are expected to treat each other with mutual respect. Employees are encouraged to offer positive and constructive criticism.

If employees disagree with established rules of conduct, policies, or practices, they can express their concern through the problem resolution procedure as noted below. No employee will be penalized, formally or informally, for voicing a complaint with the company in a reasonable, business-like manner, or for using the problem resolution procedure.

If a situation occurs when employees believe that a condition of employment or a decision affecting them is unjust or inequitable, they are encouraged to make use of the following steps. The employee may discontinue the procedure at any step.

1. Employee presents problem to immediate supervisor after incident occurs. If supervisor is unavailable or employee believes it would be inappropriate to contact that person, employee may present problem to the Human Resource Manager.

2. Supervisor responds to problem during discussion or after consulting with appropriate management, when necessary. Supervisor documents discussion.

3. Employee presents problem to Department Manager if problem is unresolved. 4. Department Manager counsels and advises employee, assists in putting problem in

writing, visits with employee's supervisor if necessary, and directs employee to General Manager for review of problem if unresolved.

5. Employee presents problem to General Manager in writing. 6. General Manager reviews and considers problem. General Manager informs

employee of decision and forwards copy of written response to Department Manager and Human Resource Manager for employee's file. The General Manager has full authority to make any adjustment deemed appropriate to resolve the problem.

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Not every problem can be resolved to everyone's total satisfaction, but only through understanding and discussion of mutual problems can employees and management develop confidence in each other. This confidence is important to the operation of an efficient and harmonious work environment.

5-4. Punctuality and Attendance

To maintain a safe and productive work environment, MRI expects employees to be reliable and to be punctual in reporting for scheduled work. You are also expected to take your lunch/meal times within the time limits set by your supervisor. Absenteeism and tardiness place a burden on other employees and on MRI. In the rare instances when employees cannot avoid being late to work or are unable to work as scheduled, they should notify their supervisor as soon as possible in advance of the anticipated tardiness or absence.

Poor attendance and excessive tardiness are disruptive. Either may lead to disciplinary action in accordance with MRI Progressive Disciplinary Policy P-01-013.

5-5. Use of Communication and Computer and Email Systems

Computers, computer files, the email system, and software furnished to employees are MRI’s, or its customers’ property and are intended for business use. Employees should not use a password, access a file, or retrieve any stored communication without authorization. To ensure compliance with this policy, computer and email usage may be monitored.

Official company business and notifications will be transmitted via company email. MRI is not responsible for employees’ failure to monitor their own MRI email.

MRI strives to maintain a workplace free of harassment and sensitive to the diversity of its employees. Therefore, MRI prohibits the use of computers and the email system in ways that are disruptive, offensive to others, or harmful to morale.

For example, the display or transmission of sexually explicit images, messages, and cartoons is not allowed. Other such misuse includes, but is not limited to, ethnic slurs, racial comments, off-color jokes, or anything that may be construed as harassment or showing disrespect for others.

Email may not be used to solicit others for commercial ventures, religious or political causes, outside organizations, or other non-business matters.

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MRI purchases and licenses the use of various computer software for business purposes and does not own the copyright to this software or its related documentation. Unless authorized by the software developer, MRI does not have the right to reproduce such software for use on more than the authorized computers.

Employees may only use software on local area networks or on multiple machines according to the software license agreement. MRI prohibits the illegal duplication of software and its related documentation.

Employees should notify their immediate supervisor, the Human Resources Manager or any member of Senior Management upon learning of violations of this policy. Employees who violate this policy will be subject to disciplinary action in accordance with MRI Progressive Disciplinary Policy P-01-013.

All computers must have current operating virus protection. Do not open suspicious files or files from unknown sources. Do not turn off or “disable” the anti-virus program and make sure it is renewed when necessary.

5-6. Personal and Company-Provided Portable Communication Devices

If you are provided a cellular phone by the Government or MRI (“Cellular Phone”), it is provided to you as a business tool. Cellular Phones are provided to assist employees in communicating with management and other employees, their MRI associates, and others with whom they may conduct business. Cellular Phone use is intended for business-related calls, and usage for personal calls should be minimized. Cellular Phone invoices and text messages (including those sent on data pagers) may be regularly monitored to ensure compliance with this policy.

Whether the cellular phone is provided by MRI, the government or the employee is using his or her own phone, employees who have access to a cell phone while in their cars should remember that their primary responsibilities are driving safely, obeying applicable state and local laws and abiding by the rules of the road. Employees are prohibited from using hand-held cell phones to conduct business while driving and should safely pull off the road and come to a complete stop before dialing or talking on the phone or writing, sending, or reading a text-based communication. Employees are reminded that that it is prohibited to use cellular phones while driving on Government installations, such as bases.

As a representative of MRI, cell phone users are reminded that the regular business etiquette employed when speaking from office phones or in meetings applies to conversations conducted over a cell phone.

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Portable Communication Device Use While Driving

Employees who drive on MRI business must abide by all state or local laws prohibiting or limiting PCD (cell phone or personal digital assistant) use while driving. Further, even if usage is permitted, employees may choose to refrain from using any PCD while driving. "Use" includes, but is not limited to, talking or listening to another person or sending an electronic or text message via the PCD.

Regardless of the circumstances, including slow or stopped traffic, if any use is permitted while driving, employees should proceed to a safe location off the road and safely stop the vehicle before placing or accepting a call. If acceptance of a call is absolutely necessary while the employee is driving, and permitted by law, the employee must use a hands-free option and advise the caller that he/she is unable to speak at that time and will return the call shortly.

Under no circumstances should employees feel that they need to place themselves at risk to fulfill business needs.

Since this policy does not require any employee to use a cell phone while driving, employees who are charged with traffic violations resulting from the use of their PCDs while driving will be solely responsible for all liabilities that result from such actions.

Texting and e-mailing while driving is prohibited in all circumstances.

5-7. Internet Usage

Internet access to global electronic information resources on the World Wide Web is provided by MRI and/or its customer to assist employees in obtaining work-related data and technology. The following guidelines have been established to help ensure responsible and productive Internet usage.

All Internet data that is composed, transmitted, or received via our computer communications systems is considered to be part of the official records of MRI and/or its customer and, as such, is subject to disclosure to law enforcement or other third parties. Consequently, employees should always ensure that the business information contained in Internet email messages and other transmissions is accurate, appropriate, ethical, lawful, and not classified or proprietary.

The equipment, services, and technology provided to access the Internet remain at all times, the property of MRI and/or its customers. As such, MRI and/or its customer reserves the right to monitor Internet and/or email traffic, and retrieve and read any data composed, sent, or received through our online connections and stored in our computer systems.

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Data that is composed, transmitted, accessed, or received via the Internet must not contain content that could be considered classified according to DoD ISM guidelines, discriminatory, offensive, obscene, threatening, harassing, intimidating, or disruptive to any employee or other person. Examples of unacceptable content may include, but are not limited to, sexual comments or images, racial slurs, gender-specific comments, or any other comments or images that could reasonably offend someone on the basis of race, age, sex, religious or political beliefs, national origin, disability, sexual orientation, or any other characteristic protected by law.

The unauthorized use, installation, copying, or distribution of copyrighted, trademarked, or patented material on the Internet is expressly prohibited. As a general rule, if an employee did not create material, does not own the rights to it, or has not gotten authorization for its use, it should not be put on the Internet. Employees are also responsible for ensuring that the person sending any material over the Internet has the appropriate distribution rights. No MRI or Government data or classified material is to be put on the internet without written permission of MRI management personnel.

Abuse of the Internet access provided by MRI and/or its customer in violation of law or MRI policies will result in disciplinary action in accordance with MRI Progressive Disciplinary Policy P-01-013. Employees may also be held personally liable for any violations of this policy. The following behaviors are some but not all examples of previously stated or additional actions and activities that are prohibited and can result in disciplinary action in accordance with MRI Progressive Disciplinary Policy P-01-013:

Sending or posting discriminatory, harassing, or threatening messages or images Using the organization's time and resources for personal gain Stealing, using, or disclosing someone else's code or password without authorization Copying, pirating, or downloading software and electronic files without permission Sending or posting confidential material, trade secrets, or proprietary information outside

of the organization Violating copyright law Failing to observe licensing agreements Engaging in unauthorized transactions that may incur a cost to the organization or initiate

unwanted Internet services and transmissions Sending or posting messages or material that could damage the organization's image or

reputation Participating in the viewing or exchange of pornography or obscene materials Sending or posting messages that defame or slander other individuals Attempting to break into the computer system of another organization or person Sending SPAM, or any of the other detrimental things like viruses, spyware, etc. Refusing to cooperate with a security investigation Sending or posting chain letters, solicitations, or advertisements not related to business

purposes or activities Using the Internet for political causes or activities, religious activities, or any sort of

gambling

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Jeopardizing the security of the company's electronic communications systems Sending or posting messages that disparage another organization's products or services Passing off personal views as representing those of the company Sending anonymous email messages Engaging in any other illegal activities

5-8. Social Networking and Blogging

The Social Networking and Blogging policy is outlined below. For full policy information please reference MRI policy P-01-011, Social Networking Policy.

In general, MRI views websites, web logs and other information published on mediums accessible by the public by its employees positively, and it respects the right of employees to use them as a medium of self-expression. If you choose to identify yourself as a MRI employee, please be advised that public release of Company or its customers’/Government information is strictly prohibited. Please bear in mind that although the information you publish will generally be viewed as a medium of personal expression, some readers may nonetheless view you as a de facto spokesperson for MRI. In light of this possibility the following guidelines must be followed:

Company equipment, including computers and electronic systems, are intended for business use only. Personal use of computers and communications may occur occasionally but should be minimized.

You must make it clear to your readers that the views expressed by you are yours alone and do not represent the views of MRI.

It is prohibited to blog or otherwise publish information about our products or services. Understand that you assume full responsibility and liability for your public statements.

You are not permitted to disclose classified or proprietary information. You must at all times abide by all non-disclosure and confidentiality policies.

Company policies governing the use of corporate logos and other branding and identity apply, and only individuals officially designated have the authority to speak on the company’s behalf. Therefore, you are not permitted to use any company logo or graphics without first obtaining permission.

You are prohibited from making discriminatory, defamatory, libelous or slanderous comments when discussing MRI, and/or your supervisors, co-workers, customers, clients and/or competitors.

You must always comply with all other employment policies, including the Harassment Policy.

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Because the information you publish is accessible by the general public, your comments must be truthful and respectful to MRI, its employees, customers, partners, affiliates and others (including our competitors) as to mirror MRI’s strict adherence to professional conduct. If you are going to criticize individual employees, consider discussing the criticism personally before making it public. MRI will not tolerate statements about the company or its employees that are defamatory, obscene, threatening or harassing.

Please be aware that MRI may request, in its sole and absolute discretion, that you temporarily confine your website, web log or other commentary to topics unrelated to the Company if it believes this is necessary or advisable to ensure compliance with laws or regulations.

Failure to comply with these requests may lead to discipline in accordance with MRI Progressive Disciplinary Policy P-01-013, and if appropriate, MRI will pursue all available legal remedies.

5-9. Use of Phone and Mail Systems

Personal use of the telephone for long-distance and toll calls is not permitted. Employees should practice discretion when making local personal calls and may be required to reimburse MRI for any charges resulting from their personal use of the telephone.

The mail system is intended for business purposes only. Employees should refrain from sending or receiving personal mail at the workplace.

To ensure effective telephone communications, employees should always use an approved greeting and speak in a courteous and professional manner.

5-10. Use of Equipment

Equipment essential in accomplishing job duties are expensive and may be difficult to replace. When using Government or MRI property, employees are expected to exercise care, perform required maintenance, and follow all operating instructions, safety standards, and guidelines.

Please notify the supervisor if any equipment, machines, or tools, appear to be damaged, defective, or in need of repair. Prompt reporting of damages, defects, and the need for repairs could prevent deterioration of equipment and possible injury to employees or others. The supervisor can answer any questions about an employee's responsibility for maintenance and care of equipment or vehicles used on the job.

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The improper, careless, negligent, destructive, or unsafe use or operation of equipment can result in disciplinary action in accordance with MRI Progressive Disciplinary Policy P-01-013.

5-11. Inspections

Merlin RAMCo, Inc. reserves the right to require employees while on MRI property, or on client property, to agree to the inspection of their persons, personal possessions and property, personal vehicles parked on MRI or client property, and work areas. This includes lockers, vehicles, desks, cabinets, work stations, packages, handbags, briefcases and other personal possessions or places of concealment, as well as personal mail sent to MRI or to its clients. Employees are expected to cooperate in the conduct of any search or inspection.

5-12. Smoking

In keeping with various state laws where applicable and MRI's intent to provide a safe and healthful work environment, smoking is prohibited throughout the workplace. This policy applies equally to all employees, customers, and visitors.

5-13. Solicitation and Distribution

To avoid distractions, solicitation by an employee of another employee is prohibited while either employee is on working time. "Working time" is the time an employee is engaged, or should be engaged, in performing his/her work tasks for Merlin RAMCo, Inc. Solicitation of any kind by non-employees on MRI premises is prohibited at all times.

Distribution of advertising material, handbills, printed or written literature of any kind in working areas of MRI is prohibited at all times. Distribution of literature by non-employees on MRI premises is prohibited at all times.

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5-14. Confidential Company Information

During the course of work, an employee may become aware of confidential information about Merlin RAMCo, Inc.'s business, including but not limited to information regarding MRI finances, pricing, products and new product development, software and computer programs, marketing strategies, suppliers, customers and potential customers. An employee also may become aware of similar confidential information belonging to MRI's clients. It is extremely important that all such information remain confidential, and particularly not be disclosed to our competitors. Any employee who improperly copies, removes (whether physically or electronically), uses or discloses confidential information to anyone outside of MRI may be subject to disciplinary action up to and including termination. Employees may be required to sign an agreement reiterating these obligations.

Non-Disclosure

The protection of MRI or its customers’ confidential business information and trade secrets are vital to the interests and the success of MRI and required by written agreements between MRI and the Government and outside companies. Such confidential information includes, but is not limited to written or documentary, recorded, machine readable information, or other information in a tangible form, which: (i) relates to either MRI’s or its customers’ ongoing or proposed businesses, products and services; (ii) is provided by MRI or its customer.

Employees who improperly use or disclose trade secrets or confidential business information will be subject to disciplinary action in accordance with MRI Progressive Disciplinary Policy, P-01-013, and legal action by MRI and/or its customers, even if they do not actually benefit from the disclosed information.

For additional information please reference the “Non-Disclosure Agreement” reviewed and signed during the new-hire in-process.

5-15. Outside Employment

Please reference the “Conflict of Interest and Business Ethics” policy 5-16.

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5-16. Conflict of Interest and Business Ethics

Employees have an obligation to conduct business within guidelines that prohibit actual or potential conflicts of interest. This policy establishes only the framework within which MRI wishes the business to operate. The purpose of these guidelines is to provide general direction so employees can seek further clarification on issues related to the subject of acceptable standards of operation. Contact the Human Resources Manager for more information or questions about conflicts of interest.

Transactions with outside firms must be conducted within a framework established and controlled by the executive office of MRI. Business dealings with outside firms should not result in unusual gains for those firms or its employees. Unusual gain refers to bribes, product bonuses, special fringe benefits, unusual price breaks, and other windfalls designed to ultimately benefit the employer, the employee, or both.

An actual or potential conflict of interest occurs when an employee is in a position to influence a decision that may result in a personal gain for that employee or for a relative as a result of MRI's business dealings. For the purposes of this policy, a relative is any person who is related by blood or marriage, or whose relationship with the employee is similar to that of persons who are related by blood or marriage.

No "presumption of guilt" is created by the mere existence of a relationship with outside firms. However, if employees have any influence within MRI or the outside company on transactions involving purchases, proposals, contracts, or leases, it is imperative that they disclose to an officer of MRI as soon as possible the existence of any actual or potential conflict of interest so that safeguards can be established to protect all parties.

Personal gain may result not only in cases where an employee or relative has a significant ownership in a firm with which MRI does business, but also when an employee or relative receives any kickback, bribe, substantial gift, or special consideration as a result of any transaction or business dealings involving MRI.

Policy Summary

What it means:

Request management approval of outside activities, financial interests or relationships that may pose a real or potential conflict of interest. Remember that management approval is subject to ongoing review, so you need to periodically update management on your involvement.

Avoid personal relationships with other MRI employees whereby parties in the relationship may receive or give unfair advantage or preferential treatment because of the relationship.

Avoid actions or relationships that might conflict or appear to conflict with your job responsibilities or the interests of MRI.

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Even the appearance of a conflict of interest can damage an important company interest.

Obtain the General Manager’s written approval before accepting any position as an officer or director of an outside business concern, including serving on the board of directors of a bona fide charitable, educational or other nonprofit organization.

What is Prohibited:

Working with a business outside of your MRI responsibility that is in competition with any MRI business.

Accepting a gift that does not meet the standards in MRI Business Gifts and Entertainment Policy.

Having a direct or indirect financial interest in or a financial relationship with a MRI competitor, supplier or customer.

Disclosure of MRI business decisions to anyone outside MRI. Having a second job where your other employer is a direct or indirect competitor or

customer of MRI. Having a second job or consulting relationship that affects your ability to

satisfactorily perform your MRI assignments. Receiving personal discounts or other benefits from suppliers, service providers or

customers that are not available to all MRI employees. Having romantic relationships with certain other employees in which:

- There is an immediate reporting relationship between the employees. - There is no direct reporting relationship between the employees but where a romantic relationship could cause others to lose confidence in the judgment or objectivity of either employee.

5-17. Security Violations and Retribution Policy

The Security Violations and Retribution Policy is outlined below. For full policy information, please reference MRI policy P-01-010, Security Violations & Retribution Policy

In accordance with Section 1-304 of the National Industrial Security Program Operating Manual (NISPOM)

Individual Responsibility

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SECURITY VIOLATIONS AND DISCIPLINARY ACTIONS

A. Responsibility:

1. Management: All management level employees will ensure that employees under their supervision are sufficiently familiar with the company security procedures to ensure their employees compliance with those procedures in accomplishing their assigned tasks.

2. Security Department: The Merlin RAMCo, Inc. (MRI) Facilities Security Officer (FSO) or alternate will, in a continuing effort to preclude security violations and promote sound security practices, maintain a vigorous security awareness program. In addition, the FSO or alternate will give security briefings and training as required, and provide advice and assistance as needed.

3. Employees: Each employee has a legal, contractual, and moral responsibility to perform his or her duties in compliance with the security procedures. Good security is always a team effort.

B. Procedures:

1. Investigation: Each incident of failure to follow security procedures must be reported immediately, by the employee discovering the problem, to the FSO or alternate who must promptly investigate the matter and report it to the office of the President or the General Manager. All employees are required to assist in any such investigation upon request.

2. Disciplinary Action: Employees who violate the security procedures are subject to the graduated scale of disciplinary actions as follows:

First violation within a period of 12 consecutive months —

Verbal reprimand and counseling by the FSO/alternate or the employee’s immediate supervisor.

Second violation within a period of 12 consecutive months —

Written reprimand and possible one day suspension without pay.

Third violation within a period of 12 consecutive months —

Termination or written reprimand and temporary suspension of custodian privileges with notice to the employee’s personnel file. A third violation will result in a minimum of three days suspension without pay.

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Deliberate incidents or incidents which involve gross negligence or a pattern of negligence will be reviewed on a case-by-case basis for appropriate disciplinary action in accordance with MRI Progressive Disciplinary Policy P-01-013.

Each cleared employee of MRI is required to report to the FSO, or alternate FSO, any of the following:

Espionage information coming to his or her attention concerning existing or threatened espionage, sabotage or subversive activities.

Compromise--The loss, compromise or suspected compromise of classified information-whether within or outside the company-as well as failures to comply with NISPOM requirements, regardless of the classification level involved, will be reported to the FSO or alternate.

Adverse information--Any information coming to his or her attention concerning any employee who is currently cleared or is in the process of being cleared for access to classified information, which indicates such access or determination, may not clearly be consistent with the national interest. As a general rule, this is information that reflects adversely upon the integrity or character of the employee and suggests his or her ability to safeguard classified information could be impaired. Reports based on rumor or innuendo should not be made. Some examples of adverse information which should be reported to the FSO or alternate are:

Criminal activities Bizarre or notoriously disgraceful conduct Treatment for mental or emotional disorders Excessive use of intoxicants Use of illegal substances such as marijuana, heroin, cocaine and hashish. Excessive indebtedness or recurring financial difficulties, including

garnishments. Refusal to pay government fines is also reportable even if only traffic tickets.

These examples are not all inclusive. If there is any doubt whether something should be considered adverse or not, report the information to the FSO or alternate for determination. Reporting such information does not necessarily mean termination of a personnel clearance.

Foreign travel, personal exchange, or meetings in other countries - Any personal exchange with foreign nationals or representatives should be reported. The intended travel to a foreign country or attendance at an international scientific, technical, engineering, or other professional meeting regardless of the geographic location is also reportable. This travel should be reported to the FSO or alternate at least 30 days in advance of travel so the FSO or alternate can provide all travelers with a defensive security briefing and counterintelligence awareness briefing. All travelers must report to the FSO or alternate upon their return for a debriefing. [See Attachment 1 in MRI Policy P-01-010, Security Violations & Retribution Policy.]

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Change in cleared employee status to be reported:

1. Death 2. Change in name 3. Termination of employment 4. Change in marital status 5. Change in citizenship 6. When the possibility of access to classified information in the future has been

reasonably disclosed

Representative of a foreign interest (RFI) - Any change in status which causes an employee to become a representative of a foreign interest. This would occur when a citizen or national of the United States or an immigrant alien acts as a representative, official, agent, or employee of a foreign government, firm, corporation or person.

Employees desiring not to perform on classified work. This includes an employee who no longer wishes to be processed for a clearance or to continue an existing clearance.

Refusal to execute SF 312, "Classified Information Nondisclosure Agreement."

5-18. Health

The health and safety of employees and others on MRI property are of critical concern to Merlin RAMCo, Inc. MRI intends to comply with all health and safety laws applicable to our business. To this end, we must rely upon employees to ensure that work areas are kept safe and free of hazardous conditions. Employees are required to be conscientious about workplace safety, including proper operating methods, and recognize dangerous conditions or hazards. Any unsafe conditions or potential hazards should be reported to management immediately, even if the problem appears to be corrected. Any suspicion of a concealed danger present on MRI's premises, or in a product, facility, piece of equipment, process or business practice for which MRI is responsible should be brought to the attention of management immediately.

Periodically, MRI may issue rules and guidelines governing workplace safety and health. MRI may also issue rules and guidelines regarding the handling and disposal of hazardous substances and waste. All employees should familiarize themselves with these rules and guidelines, as strict compliance will be expected.

Any workplace injury, accident, or illness must be reported to the employee's Supervisor as soon as possible, regardless of the severity of the injury or accident.

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5-19. Safety

Each employee is expected to obey safety rules and to exercise caution in all work activities. Employees must comply with all occupational safety and health standards and regulations established by the Occupational Safety and Health Act (OSHA) and state and local regulations. Employees must immediately report any unsafe condition to the appropriate supervisor. Employees who violate safety standards, who cause hazardous or dangerous situations, or who fail to report or, where appropriate, remedy such situations, may be subject to disciplinary action, in accordance with Progressive Disciplinary Policy, P-01-013.

In the case of accidents that result in injury, regardless of how insignificant the injury may appear, employees should immediately notify their supervisor. Such reports are necessary to comply with laws and initiate insurance and workers' compensation benefits procedures.

MRI’s employees contribute to the continued safety of their working environment. Those with ideas, concerns, or suggestions for improved safety in the workplace are encouraged to inform their supervisor or other manager of such suggestions. Reports and concerns about workplace safety issues may be made anonymously if the employee wishes. All reports can be made without fear of reprisal

5-20. Employee Dress and Personal Appearance

You are expected to report to work well groomed, clean, and dressed according to the requirements of your position. Some employees may be required to wear uniforms or safety equipment/clothing. Please contact your Supervisor for specific information regarding acceptable attire for your position. If you report to work dressed or groomed inappropriately, you may be prevented from working until you return to work well groomed and wearing the proper attire.

5-21. Publicity/Statements to the Media

All media inquiries regarding the position of MRI as to any issues must be referred to the General Manager. Only the General Manager is authorized to make or approve public statements on behalf of MRI. No employees, unless specifically designated by the General Manager, are authorized to make those statements on behalf of MRI. Any employee wishing to write and/or publish an article, paper, or other publication on behalf of MRI must first obtain approval from the General Manager.

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5-22. Suggestions

MRI appreciates suggestions to improve operations and employee relations. Whenever you have a suggestion which you believe may improve your job, safety, working conditions, methods, cost or quality, please communicate it to your supervisor or to the Vice President of Human Resources.

5-23. If You Must Leave Us

Should you decide to leave MRI, we ask that you provide your Supervisor with at least two (2) weeks advance notice of your departure. Your thoughtfulness will be appreciated.

All MRI property including, but not limited to, keys, security cards, parking passes, laptop computers, fax machines, uniforms, etc. must be returned at separation. Employees also must return all of MRI's Confidential Information upon separation. To the extent permitted by law, employees will be required to repay MRI (through payroll deduction, if lawful) for any lost or damaged MRI property.

As noted previously, all employees are employed at-will and nothing in this handbook changes that status.

5-24 Return of Property

Employees are responsible for all Government or MRI property, materials, or written information issued to them or in their possession or control.

All Government or MRI property must be returned by employees on or before their last day of work. Where permitted by applicable laws, MRI may withhold from the employee's check or final paycheck the cost of any items that are not returned when required. MRI may also take all action deemed appropriate to recover or protect the Government’s or MRI’s property.

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5-25. Few Closing Words

This handbook is intended to give you a broad summary of things you should know about Merlin RAMCo, Inc. The information in this handbook is general in nature and, should questions arise, any member of management should be consulted for complete details. While we intend to continue the policies, rules and benefits described in this handbook, Merlin RAMCo, Inc., in its sole discretion, may always amend, add to, delete from or modify the provisions of this handbook and/or change its interpretation of any provision set forth in this handbook. Please do not hesitate to speak to management if you have any questions about MRI or its personnel policies and practices.

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Section State Mandates

6.1 North Carolina

North Carolina: School Attendance Leave

Merlin RAMCo, Inc. will grant employees who are parents or guardians of school-age children up to four (4) hours of unpaid leave during any 12-month period to participate in activities at their children's school. Forty-eight (48) hours' written advance notice is required. The leave shall be at a mutually agreed upon time between the employee and the Company. The Company may require verification of the employee's participation in the school activities. Employees must first use accrued paid time off for this purpose.