Last Updated: 12/05/2012 EMPLOYEE HANDBOOK Introduction The Employee Handbook describes the current employment policies and benefits of Lexicon Solutions regarding temporary employees in a summary format. If you have questions, please contact your manager. This Handbook does not guarantee continued employment with Lexicon Solutions nor does it constitute a contract for employment or benefits. Just as each employee retains the right to resign employment, Lexicon Solutions retains the right to terminate the employment relationship in its discretion at any time, with or without cause, reason, or notice. Due to the dynamics of employee relations administration, parts of this Handbook may be revised, changed, or deleted at any time. The policies and procedures described in this Employee Handbook are applicable to all Lexicon Solutions temporary employees, unless different policies and procedures have been communicated in writing by a senior company officer to the applicable employees. This Handbook is intended solely as a guide and does not create a contract between the Company and any of its employees. Employment Policies and Procedures Equal Employment Opportunity Policy It is the policy of Lexicon Solutions to be an equal opportunity employer. Employment and advancement opportunities are open to qualified applicants and employees without regard to race, color, sex, age, marital status, religion, national origin or ancestry, citizenship, handicap or disability, veteran's status, or any other characteristic protected by federal, state, or local law. In addition, Lexicon Solutions complies with applicable state and local laws governing nondiscrimination in every company location and facility. Policy against Harassment Lexicon Solutions does not discriminate against its employees on the basis of sex, and it is the policy of Lexicon Solutions to attempt to ensure that sexual harassment does not occur. Sexual harassment is defined to include: Unwelcome sexual advances, requests for sexual favors and other verbal or physical conduct of a sexual nature when (1) submission to such conduct is made either explicitly or implicitly a term or condition of an individual's employment, (2) Quid pro quo - submission to or rejection of such conduct by an individual is used as the basis for employment decisions affecting such individual, or (3) such conduct has the purpose or effect of unreasonably interfering with an individual's work performance or creating an intimidating, hostile or offensive work environment. Employees aware of any violation of this policy must report the circumstances to a Lexicon Solutions supervisor or Lexicon Solutions manager. Reports of sexual harassment will be completely investigated in a timely manor, and appropriate disciplinary action will be taken. If the results of the investigation confirm that the offense likely occurred, immediate disciplinary action up to and including discharge will be taken against the person violating this policy. Lexicon Solutions prohibits any form of illegal retaliation against any employee for filing a complaint under this policy or for assisting in an investigation Employment Classification For purposes of salary administration, eligibility for overtime payments, and certain employee benefits, your job at Lexicon Solutions is classified into one of the following category: Category I Internal employees only Category II Contractually exempt or salaried employees scheduled longer than 6 months in duration for contract positions Category III Hired to work on an hourly basis are scheduled, typically, for a period of six months or less as temporary employees, for the term of the employee’s contract or in Lexicon Solutions’ discretion. “Category III employees are not -1- Last Updated: 12/05/2012 eligible for PTO unless explicitly stated in the Employee Contract Agreement. Resignation If you voluntarily decide to resign from your employment with Lexicon Solutions, we request that you give the company at least 5 days (business days) notice in advance of your intended date of termination. Such notice should be given in writing to your Lexicon Solutions Account Manager. This will facilitate the necessary transition of your job responsibilities. At its sole discretion, Lexicon Solutions may require or permit the employee to leave prior to the end of the 5-day period. You will be paid for all hours actually worked. All Category II & III employees that complete a job assignment or contract are required to contact Lexicon Solutions within 24 hours or the next business day. Failure to do so as well as failure to accept a suitable assignment offered will be regarded as a voluntary termination, and may place any due unemployment benefits in jeopardy. General Rules of Conduct The success of our company depends upon your conduct, pride, courtesy, helpfulness, attitude and contribution to the company and its mission. Any group of people who work together must abide by a code of conduct. All of Lexicon Solutions employees are expected to maintain professional behavior at all times, especially while in the work place. The types of behavior which are considered unacceptable and may result in corrective or disciplinary actions are as follows: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. Falsifying employment or company records or documents, time cards, or documents of a Lexicon Solutions client. Physical harassment of fellow employees, fighting or using obscene, abusive, or threatening language or gestures with employees, visitors, or customers. Transportation on company premises of weapons in a personal vehicle while on company business Use, sale, distribution, possession, or reporting to work under the influence of illegal substances (or abuse of prescription drugs) or alcoholic beverages while on company or a client’s property or while using company property. Violation of safety or security regulations. Gambling on Company property. Inappropriate or excessive use of company resources, and or misappropriation, misuse, or destruction of company or a client’s supplies, money, materials, equipment, or other property. Stealing theft or defacing the Company's, a Client’s, or fellow employee's property. Insubordination. Negligence or incompetence. Leaving work without permission (except during lunch breaks) Possession of morally questionable content on company premises Failing to maintain the confidentiality of company, client, contractor or customer information. Excessive tardiness or absenteeism, or failure to follow appropriate procedures for reporting absences or tardiness. Discriminatory or harassing actions. Violation of rules of the Lexicon Solutions Client for whom the employee works. Use of verbally offensive or derogatory language, and or shouting and yelling at peak volumes. Unsatisfactory job performance or interruption of the work of others. Intentional interruption of co-workers scheduled activities. Excessively long lunch time breaks without justification. Socializing to the extent that it interferes with office productivity should be avoided Un-wanted physical conduct and or Sexual Harassment Should your performance, work habits, conduct or demeanor become unsatisfactory in the judgment of Lexicon Solutions, you will be subject to corrective action, up to and including termination. Information Systems Acceptable Use Policy for Employees 1. Introduction Lexicon Solutions’ acceptable Use Policy is in effect to ensure that all employees understand the guide lines which outline the proper use of Information Systems. 2. Policies The following are violations of Lexicon Solutions’ acceptable use policies: -2- Last Updated: 12/05/2012 2.1 Using Lexicon Solutions or Lexicon Solutions Client Company Information Systems for illegal purposes or in support of illegal activities. Lexicon Solutions reserves the right to cooperate with legal authorities and/or injured third parties in the investigation of any suspected crime or civil wrong. Activities which are prohibited as potentially illegal include, but are not limited to: 2.3 2.2.1 Unauthorized copying of copyrighted material including, but not limited to digitization and distribution of photographs from magazines, books, or other copyrighted sources, and copyrighted software. 2.2.2 Exporting software or technical information in violation of U.S. Export control laws. 2.2.3 Posting or emailing of scams such as ‘make money fast' schemes or ‘Pyramid/Chain’ letters 2.2.4 Threatening bodily harm or property damage to individuals or groups. 2.2.5 Making fraudulent offers of products, items, or services originating from Lexicon Solutions’ Information Systems. 2.2.6 Attempting to access the accounts of others, or attempting to penetrate security measures of Lexicon Solutions’ or Lexicon Solutions Client’s Information Systems (“hacking”), whether or not the intrusion results in corruption or loss of data. 2.2.7 The unauthorized use of person’s name or likeness. Harassing others by ‘mail-bombing’ or ‘news-bombing’. ‘Mail-bombing’ constitutes sending more the ten(10) similar mail messages to the same email address. ‘News bombing’ constitutes sending more than 10mb of data to a newsgroup. 2.3.1 Sending unsolicited electronic mail (email) messages where the recipient objects to the content of the message or to the receipt of the message in general is also prohibited under this section. 2.3.1.1. Employees acknowledge that they are expressly prohibited from utilizing Lexicon Solutions’ Information Systems equipment in connection with sending of the same or substantially similar unsolicited email message whether commercial or not, to a large number of recipients. This prohibition extends to the sending of unsolicited mass mailings from another service which in any way implicates the use of Lexicon Solutions’ or Lexicon Solutions Client’s Information Systems equipment or any Lexicon Solutions or Lexicon Solutions Client email address(es). 2.3.1.2 Employee specifically agrees and understands that he/she is Found to be responsible for any of these acts that they may be terminated at Lexicon Solutions’ discretion. Lexicon Solutions at its sole discretion shall determine whether such violations were willful or unintentional. These provisions shall not prevent Lexicon Solutions from seeking to obtain other legal remedies against the employee including other damages or an injunction. 2.4 Revealing your account password to others or allowing use of your account by others. 2.4.1 At no time can there be simultaneous use of the same username and password combination. 2.5 Forging any message header, in part or whole, of any electronic transmission, originating or passing through Lexicon Solutions’ or Lexicon Solutions Client’s Information Systems. -3- Last Updated: 12/05/2012 2.6 Distributing viruses to or from Lexicon Solutions’ or Lexicon Solutions Client’s Information Systems. 2.7 Viewing of any and all types of pornographic or sexually explicit material. Viewing this material through any Uniform Resource Locater Address (Web Site Address) on the Internet or World Wide Web. Viewing pornographic or sexually explicit material through any and all types of downloadable files or files retrieved from removable or unremovable media or peripheral devices (i.e., floppy disk, Zip disk, CD Rom, hard drive, removable hard drive) is expressly forbidden. 3. Lexicon Solutions assumes no liability Lexicon Solutions has no practical ability to restrict all conduct, communications or content which might violate this policy prior to its transmission on Lexicon Solutions’ or Lexicon Solutions Client’s Information Systems, nor can Lexicon Solutions ensure prompt removal of any such communications or content after transmission or posting. Accordingly Lexicon Solutions does not assume liability to employees or others for any failure to enforce the terms of this policy. 4. Revisions to this Policy Lexicon Solutions reserves the right to modify this Policy at any time. Notice of modifications to this policy may be given to employees by posting such changes through electronic mail conventional, interoffice mail, or web posted version on the company’s intranet. Attendance and Punctuality Lexicon Solutions and its employees are proud to consistently serve our clients in a timely and efficient manner. Therefore, your attendance and punctuality are very important. Lexicon Solutions expects all employees to assume diligent responsibility for their attendance and promptness. Please notify your direct supervisor, and then promptly inform Lexicon Solutions of any absence or expected tardiness. When you first are starting an assignment, it is your responsibility to ask for a contact phone number if you need to alert your supervisor or department manager of your situation if you will miss any work. Because excessive absenteeism and lateness interferes with the service to our clients and places an unfair burden upon co-workers, it will not be tolerated. Those who are excessively absent or late in the judgment of the Company will be subject to corrective action, up to and including termination. An employee must personally report each lateness and absence directly to his or her Lexicon Solutions Account Manager in advance of the designated start time. You must call your Lexicon Solutions Account Manager each day of absence unless you have been granted an authorized medical leave. Absences not reported to a Lexicon Solutions Account Manager may result in corrective action, up to and including termination. Unreported absence of three consecutive days may be deemed a voluntary resignation of your employment and job abandonment. Dress Code An emphasis on quality and professionalism are among the traits that distinguish Lexicon Solutions from other companies in our industry. As representatives of our company, all employees are expected to dress in appropriate business attire at all times. You should use good judgment in the choice of your work clothes worn at the office and when representing the company at any location. Generally business casual is acceptable, except when participating in events where a client’s representative(s) may be attending on the premises. Please remember that tattered, torn, pre-ripped, factory “excessively worn” conditioned jeans, cut-offs (pants converted to shorts), and halter/tank tops are considered to be poor discretion. This applies to all employees. Based on customer contact and other business-related requirements, some employees may adopt dress requirements specific to their needs. Ask your Lexicon Solutions Account Manager about specific requirements for your position. Your failure to abide by the dress standards established by the company or your Lexicon Solutions Account Manager may result in corrective action, including disciplinary action up to and including termination. You may also be sent home from work to change into appropriate attire before returning to work. Drug and Alcohol Free Workplace Lexicon Solutions (the "company") believes a drug-free workplace enhances the safety of our employees, our clients, and the general public, enhances employee productivity, and ensures the quality of our products and service. The sale, use, or possession of alcohol, narcotics, drugs, or controlled substances (other than medication prescribed by a doctor where the employee’s supervisor is notified of the prescription) while on the job, on company property, or in or on a company vehicle or other company equipment is strictly -4- Last Updated: 12/05/2012 prohibited, as is working under the effects of such substances. Employees, who violate this policy, and the procedures described in this policy summary, are subject to discipline, up to and including termination. Submitting to drug and alcohol testing under the procedures described in this policy summary, and passing testing conducted under this policy, are conditions of employment. An employee’s reasonable consumption of alcohol at company-sponsored events or as otherwise permitted by the company is not a violation of this policy. Definitions “Alcohol” means ethanol, isopropanol, or methanol. “Drugs” means marijuana, cocaine, opiates, phencyclidine (PCP), amphetamine, and substances specified in Schedule I or Schedule II of the Controlled Substances Act, 21 U.S.C. § 811, et seq. “Employee” means any compensated employee, including officers, directors, and supervisors. “Sample” means urine, blood, breath, saliva, hair, or other substances from the person being tested, as designated by the company. Drug and Alcohol Testing. A. Individuals Subject to Testing and the Circumstances under Which Testing May Be Required. Prospective employees are subject to testing for the presence of drugs, and current employees are subject to testing for the presence of drugs and alcohol. The company may test prospective and current employees under the following circumstances: 1. Job Applicants. All applicants considered for a job opening, including former employees, current employees transferring to another position, and employees returning from a leave, may be tested for the presence of drugs as part of the application process. If the applicant’s drug test is positive, the applicant will not be considered for employment. 2. Reasonable Suspicion. The company may test employees suspected of violating the company’s drug-free workplace policy where such condition may adversely affect the employee’s job performance or the work environment. 3. Random Testing. The company may, in its discretion, periodically perform unannounced random drug and alcohol tests of employees or groups of employees. During these random tests, the company may test a sample of employees, a group of employees at one or more facility, or all employees. 4. Post-Accident Testing. Any employee who is involved in a work-related injury or accident whom the company reasonably believes may have contributed to the accident may be required to submit to a drug and alcohol test as soon as practicable after the accident. 5. Additional Testing. Additional testing also may be done as required by state, federal, or local law; for any job-related purpose consistent with business necessity; to investigate possible individual employee impairment; to maintain the safety of employees, customers, clients, and the public; to maintain productivity, quality of products and services, security of property and information; and as deemed necessary by the company. If federal, state, or local law requires testing, the company may test pursuant to that law even if the testing procedures under that law do not conform to all of the provisions of this policy, and other company policies may describe testing required under federal, state, or local law. If an employee tests positive and continues as an employee, the employee may be required to undergo additional periodic testing as a condition of continued employment. B. Testing Procedures. 1. All prospective and current employees asked to submit to a drug or alcohol test will be asked to sign a form consenting to the test. Failure to submit to a drug or alcohol test under this policy will be grounds for discipline, up to and including dismissal. 2. Prior to any drug or alcohol test, prospective or current employees have the right to notify the person performing the test of any information that may be considered relevant to the test, including the identification of currently or recently used prescription or nonprescription drugs or other relevant medical information. -5- Last Updated: 12/05/2012 3. Drug and alcohol testing normally will occur during or immediately before or after an employee’s regularly scheduled work period. For current employees, time spent engaging in the test will be considered work time for the purposes of compensation and benefits. 4. The company will pay all costs associated with any drug or alcohol testing of current employees under this policy, and it reserves the right to require prospective employees to pay for drug testing under this policy. ,In addition, the company will reimburse current employees for reasonable transportation costs if the required test is conducted at a location other than the employee’s normal work site. 5. Prospective and current employees subject to testing may be required to provide picture identification to the person conducting the test. 6. The following is a list of the substances as to which the company may test as of August 1, 1998. If this list changes in the future, prospective or current employees subject to testing will be provided with an updated list of substances prior to any testing. · · · · · · Alcohol Amphetamines (Amphetamine; Methamphetamine) Cannabinoids (THC-COOH; marijuana) Cocaine Metabolite(Benzoylecgonine) Opiates (Codeine; Morphine) Phencyclidine (PCP) 7. The procedure for collecting testing samples will be given to employees prior to submitting to any test under this policy. 8. Samples will be tested using an Enzyme-Multiplied Immunoassay Technique (EMIT). Positive drug test results will be confirmed using a different chemical process than was used in the original drug test. The second or confirmatory drug test will be a chromatographic technique such as gas chromatography-mass spectrometry or another comparably reliable analytical method. If these tests change, employees will be notified of the change prior to submitting to a drug or alcohol test. C. Employee Rights. In addition to any other rights discussed in this policy, employees have the following rights with regard to drug and alcohol testing under this policy: · Upon request, employees have the right to obtain the written test results of any drug or alcohol test. · Upon request, employees have the right to explain, in a confidential setting, a positive test result. · To the extent practicable, the Company will maintain the confidentiality of the results of drug and alcohol testing. The Company may use the test results, and any communications received in connection with the testing, to make employment decisions regarding the tested employee. The Company also may disclose the test results: (1) to the tested employee or prospective employee or any other person designated in writing by that employee or prospective employee; (2) to individuals the Company designates to receive and evaluate test results or hear the explanation of the employee or prospective employee; (3) to an arbitrator, mediator, court, and/or governmental agency as authorized by state or federal law; (4) in any proceeding related to the drug testing or the employee’s employment with the Company; or (5) as otherwise allowed by law. D. Potential Disciplinary Action. Upon violation of this policy, on receipt of a positive drug test or alcohol impairment test result that indicates a violation of the Company’s drug-free workplace policy, or if a prospective or current employee refuses to provide a drug testing or alcohol impairment testing sample, the Company may, in its discretion, use the violation of the policy, the test result, or test refusal as the basis for taking any disciplinary action, including the following: 1. Suspension of the employee, with or without pay, for a designated period of time. -6- Last Updated: 12/05/2012 2. Termination of employment. 3. Refusal to hire a prospective employee. Any questions regarding this policy should be directed to Lexicon Solutions management. Open Door Policy-Problem Resolution Procedure Lexicon Solutions has an open door policy for the effective communication between employees to freely discuss matters of mutual concern. Such issues may include any matter which is of serious concern to the employee, including corrective actions, promotions, work schedules, performance appraisals, sexual harassment, or other forms of discrimination or harassment. Most incidents will be resolved through effective employee interaction. However, should a problem persist that you believe is detrimental to you or Lexicon Solutions, you should follow the procedure described below to bring your complaint to management's attention. Procedure STEP 1: Discussion of the problem with your Lexicon Solutions Account Manager. If you feel a discussion with your Lexicon Solutions Account Manager would be unproductive or Inappropriate, you may proceed directly to “Step2”. STEP 2: If your problem is not resolved after discussion with your Lexicon Solutions Account Manager or if you feel discussion with your Lexicon Solutions Account Manager is inappropriate, you are encouraged to request a meeting with the next level of management. In an effort to resolve the problem, this manager will consider the facts, may conduct an investigation, and may review the matter with other members of management. You should receive a prompt response regarding your problem soon after the meeting. STEP 3: If you are not satisfied with the decision of the next level of management and wish to pursue the problem or complaint further, you may prepare a written summary of your concerns and request that the matter be reviewed by senior management. After examination of the facts you will be promptly advised of a decision. Lexicon Solutions does not tolerate retaliation against employees who use this procedure. The Open Door Policy should not be construed, however, as preventing, limiting, or delaying Lexicon Solutions from taking corrective action against any employee where necessary, up to and including termination. Personal Phone Calls Lexicon Solutions recognizes that employees may need to communicate with family members or conduct arrangements for personal matters during the work day. However, office and client telephones are to be used only for the transaction of company or client business, or for personal emergency reasons. In an emergency dial 9-1-1 and request assistance for the nature of the emergency so that emergency response providers may be dispatched in a timely manner. Personal phone calls during work hours should be kept to a minimum. Company or client telephones can be used only with your Lexicon Solutions Account Manager's permission and only to the geographic areas specifically permitted by your Lexicon Solutions Account Manager. The placement of long distance calls by the employee for personal reasons or receipt of such phone call via the company's toll-free (800) business line is strictly forbidden. Violation of these rules may result in corrective action, up to and including termination. Personal Visits Personal visits during work hours interrupt productivity, distract other employees, and may expose confidential information to visitors. Therefore, personal visits should be kept to a minimum, and are discouraged by persons who pose a potential risk to the company, such as employees of a competitor. All personal visitors are not allowed in work areas without a company escort. Proprietary and Confidential Information Lexicon Solutions has many valuable assets, including its employee relationships, physical property, trade secrets, and confidential information. Company assets include trademarks, trade names, computer software and data, technical and business know-how and expertise, and any information marked "confidential". Without the prior written approval of Lexicon Solutions, an employee may not take any of the following actions: Sell, transfer, give, loan, or otherwise dispose of any company asset, other than in the ordinary course of authorized company business; -7- Last Updated: 12/05/2012 - Use any company asset (including any company personnel) for the benefit or profit of the employee or any person outside of Lexicon Solutions; or Disclose, directly or indirectly, any trade secret, confidential information, or other proprietary assets to any person outside Lexicon Solutions or any person within Lexicon Solutions who does not need to know the information. Any employee aware of the loss, theft, misuse, or inappropriate disclosure of any company assets or proprietary assets should immediately report it to his or her Lexicon Solutions Account Manager. Lexicon Solutions Account Managers receiving such reports shall handle them in a careful and thorough manner and immediately report all details to senior management. Each employee who originates trade secret or confidential information must identify, clearly label as "confidential," and appropriately handle all such information. However, the lack of a specific "confidential" legend does not waive Lexicon Solutions' rights to the information or affect an employee's obligations described in this policy. Employees may be asked to sign an agreement at the time of hire, which describes their confidentiality obligations. Lexicon Solutions’ clients may impose additional restrictions on the use of confidential or proprietary information, and employees are expected to adhere to those restrictions. Workplace Safety Lexicon Solutions is committed to providing a safe and healthy working environment. The Company makes every effort to comply with relevant federal and state occupational health and safety laws and to develop the best feasible operations, procedures, technologies, and programs conducive to such an environment. Lexicon Solutions policies are aimed at minimizing the exposure of our employee's and visitors to our facilities to health or safety risks. In this regard, your responsibilities include: Exercising reasonable care and good judgment at all times to prevent accidents and injuries. Immediately reporting to your Lexicon Solutions Account Manager and seeking first aid for any injury. Reporting possibly unsafe conditions, equipment, or practices to your Lexicon Solutions Account Manager. Overtime pay procedures Lexicon Solutions' standard work week for Category III hourly employees is 40 hours per week. If you are classified as a "Category III" employee, you will receive compensation for overtime work as follows: You will be paid "straight time" (i.e., your regular hourly rate of pay) for all hours worked up to 40 hours in any given work week. Any hours worked in excess of 40 hours in a week are paid at one and a half times your regular hourly rate. Compensation is paid for those hours worked and verified on weekly timecards. Payroll Policies Payday All Lexicon Solutions "Category II& III "employees are normally paid weekly, on every Friday, for the previous one week period ending the previous Sunday at midnight. When a payday falls on a holiday, payment will be made on Thursday. Deductions Certain payroll deductions are required by law and are automatically deducted from your paycheck. Automatic deductions include social security contributions, federal income tax, state income tax and applicable local wage taxes. Social Security You are covered under the Federal Social Security Program from the day your employment with Lexicon Solutions begins. Each payday, a deduction from your paycheck is made and matched with an equal contribution made by Lexicon Solutions. The combined amount is deposited with the Federal Social Security Account, and you earn credit toward eligibility for retirement and /or disability pension benefits, coverage for hospitalization benefits under Medicare, as well as insurance for your family in the event of your death. -8- Last Updated: 12/05/2012 Holiday Pay Policy: All Lexicon Solutions “Category II & III” employees are eligible for holiday pay. Lexicon Solutions recognizes six paid holidays per year; New Years Day, Memorial Day, Independence Day, Labor Day, Thanksgiving and Christmas. You qualify for holiday pay if: 1) you work 500 hours (excluding overtime) in 16 consecutive weeks ending one full week prior to the holiday week; 2) you are on an assignment the week of the holiday week; and 3) you work the scheduled workday before and after the holiday. Pay for a holiday is in accordance with your current rate of pay. Paid Time Off policy: As a “category III” employee compensation is paid only for hours authorized by signed and verified employee time cards. “Category III” employees are not eligible for PTO pay. PTO is accrued by Category II employees. The schedule for category II employees is as follows: Category II PTO accrued by contracted employees of Lexicon Solutions may be eligible for paid leaves up to a maximum of 5 Days each year. The actual number of days will be determined by the following: All employees who are contracted or work for longer than six months in duration will be offered PTO equal to the amount accrued based on their hourly average reported hours, and are accrued from the date of hire. Hours Worked 1000 hours (including OT) Vacation Days Earned 2 days 1500 hours (including OT) 1 additional day 2000 hours (including OT) 2 additional days Up to five days of unused PTO time can be carried over, but PTO time will be capped at the annual allotment plus five days. The accrual ceases once the cap is reached. This number will be determined by an individual’s balance on the last day of the pay period. The accrual resumes after the balance of vacation is below the cap. Be aware of your PTO balance to ensure you do not reach your cap, which would result in losing your pay period accrual or annual allotment. All hours taken must be accrued, there are no advancements The basis for employees being granted certain PTO dates will be determined on the seniority of the employee and the individual requirements for coverage in critical operations for the location which the employee works. All available PTO hours must be used prior to termination of contract. Any unused PTO will not be paid. You must notify your Lexicon Solutions Account Manager (503) 469-6000 prior to or at the start of each work day you are absent due to any reason. Excessive absences or arriving late to work may result in corrective action, up to and including termination as deemed appropriate by Lexicon Solutions. -9- Last Updated: 12/05/2012 EMPLOYEE HANDBOOK ACKNOWLEDGMENT FORM In connection with my hiring or continued employment by Lexicon Solutions, I acknowledge, understand, and agree that: 1. I have received a copy of the Lexicon Solutions Employee Handbook, and I will abide by the policies and programs of the company, including any changes to the same, unless instructed otherwise. 2. All policies and programs of the company are intended as guidelines only, and may be amended, changed, or eliminated at any time, without prior notice, at the sole discretion of the company, and, depending on the particular circumstances of a given situation, the company’s actions may vary from written or unwritten policy. 3. I hereby consent to the company or a company client searching, at any time and without advance notice or warning to me, all company or client property and premises and my personal property located on company or client property and premises, including but not limited to vehicles, structures, buildings, furniture, equipment, offices, lockers, desks, file cabinets, purses, backpacks, briefcases, documents, computers and other devices, and all other forms of electronic media. I further consent to the company or a company client monitoring my workplace activities, including monitoring my telephone calls and all computerized and communication activities, such as electronic mail, telecopies, and other forms of communications, at any time and without advance notice or warning to me. 4. If my employment is terminated for any reason, I authorize the company to mail my final paycheck to my address on file with the company. I understand that I must notify the company in writing of changes in my address. 5. Alcohol Policy. I further acknowledge that I have been provided with a copy of the Company's Drug and 6. I understand that both the company and I have the right to terminate my employment at any time, for no reason or for any reason, with or without cause or notice. This is known as employment “at will.” Nothing in this acknowledgment or in any company policy or statement, including statements made to me during negotiations about working at the company, is intended to or does create terms of an express or implied contract of employment, nor guarantees employment for a specific term. Only the President and Board of Directors of the Company may modify my at-will employment status or guarantee that I will be employed for a specific period of time, and any such modification must be in writing, approved by the Board of Directors, and signed by an authorized company representative. EMPLOYEE NAME (PLEASE PRINT): ____________________________________ EMPLOYEE SIGNATURE: ____________________________________ DATE: _______/______/_____ - 10 -