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Employee Handbook Revised September 30, 2015

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Contents

WELCOME! ...................................................................................................................................... 4

HISTORY OF CENTRAL CAROLINA AIR CONDITIONING .............................................................. 4

GOALS OF CENTRAL CAROLINA AIR CONDITIONING .................................................... 6

MISSION OF CENTRAL CAROLINA AIR CONDITIONING ................................................. 7

PURPOSE OF THIS HANDBOOK ................................................................................................ 8

EMPLOYMENT AT WILL ............................................................................................................. 9

EMPLOYMENT POLICIES ......................................................................................................... 10

EQUAL EMPLOYMENT OPPORTUNITY EMPLOYER ..................................................................... 10

AMERICANS WITH DISABILITIES ACT ............................................................................................ 10 UNLAWFUL WORKPLACE DISCRIMINATION AND HARASSMENT .......................................... 10 OPEN COMMUNICATIONS ................................................................................................................. 12 OPEN DOOR POLICY ............................................................................................................................ 12

MANAGEMENT PREROGATIVES ...................................................................................................... 13 CONFIDENTIALITY OF EMPLOYEE RECORDS .............................................................................. 13

DRUG AND ALCOHOL POLICY .......................................................................................................... 13 WORKING WITH CUSTOMERS AND FELLOW EMPLOYEES ........................................................ 15 VIOLENCE IN THE WORKPLACE ...................................................................................................... 16

ATTENDANCE AND ABSENCE FROM WORK ................................................................................. 16 DISCIPLINARY POLICY ....................................................................................................................... 17

EXAMPLES OF UNACCEPTABLE BEHAVIOR ................................................................................. 17 INTEGRITY ............................................................................................................................................ 18

INDIFFERENCE ..................................................................................................................................... 18 COMPANY PROPERTY ........................................................................................................................ 18 CONFIDENTIALITY AND NON-COMPETE POLICY ........................................................................ 18

TELEPHONE POLICIES ........................................................................................................................ 19 COMPUTER AND EMAIL USAGE ....................................................................................................... 19

DATA STORAGE AND DISPOSAL ...................................................................................................... 20 EMPLOYEE DRESS AND APPEARANCE POLICY ........................................................................... 20 NURSING MOTHERS ............................................................................................................................ 21

EMPLOYMENT OF RELATIVES ......................................................................................................... 21 TOBACCO ............................................................................................................................................... 22 PARKING ................................................................................................................................................ 22 WALKWAY ............................................................................................................................................ 22 SOLICITATIONS .................................................................................................................................... 22

HOUSEKEEPING ................................................................................................................................... 22

YOUR JOB ...................................................................................................................................... 23

NEW EMPLOYEE ORIENTATION ....................................................................................................... 23 EMPLOYEES' RECORDS ...................................................................................................................... 23

INTRODUCTORY PERIOD ................................................................................................................... 23 EMPLOYEE CLASSIFICATIONS ......................................................................................................... 23

EXEMPT AND NON-EXEMPT CLASSIFICATIONS .......................................................................... 24

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OVERTIME ............................................................................................................................................. 24

TIME CARDS .......................................................................................................................................... 24 WORKING HOURS ................................................................................................................................ 25 24-HOUR DUTY COMPENSATION ..................................................................................................... 25

LOANS TO EMPLOYEES ...................................................................................................................... 25 SETTLEMENT OF ACCOUNT .............................................................................................................. 25 PERFORMANCE REVIEWS .................................................................................................................. 25 PROMOTIONS AND TRANSFERS ....................................................................................................... 26 LAYOFFS ................................................................................................................................................ 26

RESIGNATION ....................................................................................................................................... 26

HEALTH, SAFETY AND SECURITY ........................................................................................ 27

SAFETY COMMITTEE .......................................................................................................................... 27

SAFETY POLICY ................................................................................................................................... 27 USE OF SHOP FACILITIES, EQUIPMENT AND COMPANY OWNED VEHICLES BY

EMPLOYEES FOR PERSONAL USE .................................................................................................... 28

HAZARD COMMUNICATION PROGRAM ......................................................................................... 28 WORKER'S COMPENSATION ............................................................................................................. 30

REPORTING ACCIDENTS .................................................................................................................... 30 RETURN TO WORK FOR OCCUPATIONAL INJURIES .................................................................... 30 SAFE WORKER REWARD PROGRAM ............................................................................................... 30

DISCIPLINE FOR SAFETY RULE VIOLATION ................................................................................. 31 REPORTING INJURIES ......................................................................................................................... 32

ACCIDENT INSTRUCTION FOR WORKER'S COMPENSATION WHEN AN ACCIDENT

OCCURS: ................................................................................................................................................. 32

VEHICLES ...................................................................................................................................... 33

COMPANY OWNED VEHICLES .......................................................................................................... 33

OPERATION OF COMPANY OWNED VEHICLES............................................................................. 33 TRUCK INVENTORY ............................................................................................................................ 33 ALCOHOL USAGE FORBIDDEN ......................................................................................................... 34

FLEET SAFETY POLICY ....................................................................................................................... 34

TOOL PROGRAM ......................................................................................................................... 40

TOOL REQUIREMENTS ....................................................................................................................... 40 YOUR TOOLS ......................................................................................................................................... 40

NEW EMPLOYEES TOOL PURCHASE PROGRAM........................................................................... 40 TOOL ACCOUNT ................................................................................................................................... 40 TOOL POLICY ........................................................................................................................................ 41

BENEFITS AND TIME OFF ......................................................................................................... 43

GROUP INSURANCE ............................................................................................................................ 43 COBRA .................................................................................................................................................... 43 401-K PLAN ............................................................................................................................................ 43

PAID HOLIDAYS ................................................................................................................................... 43 VACATIONS ........................................................................................................................................... 44 BEREAVEMENT PAY ........................................................................................................................... 44

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JURY DUTY ............................................................................................................................................ 45

LEAVES OF ABSENCE ......................................................................................................................... 45 WORKSTEPS .......................................................................................................................................... 45 FAMILY AND MEDICAL LEAVE ACT ............................................................................................... 45

PERSONAL LEAVE OF ABSENCE ...................................................................................................... 50 LEAVES OF ABSENCE AND INSURANCE BENEFITS ..................................................................... 51 WORKERS COMPENSATION .............................................................................................................. 51 SALES TO EMPLOYEES ....................................................................................................................... 52 EMPLOYEE CHARGES FOR SERVICE, EQUIPMENT AND LABOR .............................................. 52

TRAINING/PUBLICATIONS ................................................................................................................ 53 EDUCATIONAL ASSISTANCE ............................................................................................................ 53 EMPLOYEE REFERRALS ..................................................................................................................... 53 RECEIPT AND ACKNOWLEDGEMENT OF EMPLOYEE HANDBOOK ......................................... 54

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WELCOME!

We are delighted to have you on our team! We trust this handbook will be informative, although we

realize that it by no means covers all points of interest in connection with your position.

HISTORY OF CENTRAL CAROLINA AIR CONDITIONING

Central Carolina Air Conditioning installed its first air conditioning system in April, 1967. When Richard

Lacy began the Company as Lacy Air Conditioning, the first office sheet metal shop was a 2,000 sq. ft.

military building in the O.R.D. section of Greensboro. The building was full of holes and impossible to

heat or cool to any comfort level. It grew from one employee, Richard Lacy, to six employees and back to

three employees during the first year. That first full year of business produced a whopping $27,000 in

total sales revenue.

In 1972, the name changed to Central Trane Air Conditioning Company, Inc. to take advantage of an

opportunity to use the Trane company name. Many current employees joined our Company in the next ten

years.

In 1984, the name was changed to Central Carolina Air Conditioning, Inc., partially because of major

changes within the Trane Company, but more importantly, to allow us the freedom to expand and grow.

In 1997, Richard Lacy, founder and owner of Central Carolina Air sold the company to a major

consolidator, Group Maintenance America. During the next two years several of our key managers

attended management training seminars and became familiar with the corporate staff.

In 1999, Group Maintenance America merged with Building One Resources and created Encompass. For

the next three years, Central Carolina Air operated as a business unit of Encompass.

In 2002, our current owner and President, Bobby Allison, and our founder, Richard Lacy, along with

senior managers, Barbara Dixon, Pat Priddy and Bill Corriher purchased the company back from

Encompass. In May 2005 Mike Quinn, a well respected PE, joined the company as a senior manager.

Through all these changes Central Carolina Air Conditioning has remained one of the highest ethical and

quality standard companies in the State. Richard Lacy has stated that we have come a long way from

those early years because we are a company of good people, selling and installing good products, and

always having a plan for the future.

Central Carolina Air Conditioning operates one of the largest truck fleets residentially serving the Triad

area as well as serving the entire state commercially. Our maintenance and repair technicians

continuously receive on-going training and education. Technicians are certified to handle refrigerant.

They maintain a professional demeanor, and they are well groomed with great respect for our customers,

our Company, and themselves. Our philosophy is "do it right the first time". We service our customers 24

hours/7 days a week/365 days a year, both residentially and commercially.

Our in house capabilities include complete commercial design, installation, electrical, piping, install,

replacement equipment, heat coil service repair, plumbing inspections and service repair. Residentially,

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we service all brands of equipment, install replacement equipment and also offer a full range of home

comfort service programs and products. We also offer plumbing & electrical inspections and service.

At Central Carolina Air Conditioning, we concentrate our efforts and expertise to reduce our customers'

heating and cooling costs along with extending the useful life of that equipment. We believe we have all

the necessary state-of-the-art computerized data and accounting systems. However, we take it ONE STEP

FURTHER. REAL PEOPLE who have a caring attitude with the willingness and dedication to meet our

clients' needs and take pride in doing so. Each employee demonstrates this pride each day by meeting

client needs; one client at a time!

This booklet outlines the Company's policies, benefits and procedures which help us perform as a

professional team. We encourage you to read the contents carefully. Should you have any questions or

need further explanation, please schedule time with your immediate supervisor.

WE WELCOME YOU AS A PART OF OUR FINE TEAM OF PROFESSIONALS AT CENTRAL

CAROLINA AIR CONDITIONING!

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GOALS OF CENTRAL CAROLINA AIR CONDITIONING

Central Carolina Air Conditioning will be an HVAC leader in providing EXTRAORDINARY service and

installations. Central Carolina Air Conditioning will NEVER accept past performance as good enough;

but, rather, continue to strive for new levels of excellence. To maintain this atmosphere of TRUST AND

RESPECT we will:

Listen to the people who DO the work

Listen to our CUSTOMERS

Have only one class of member: EVERYONE EQUAL

Recognize excellence, while the individual is still sweating from his or her efforts.

Encourage each member to take risks, exercise initiative, and never be afraid to make mistakes.

Personify the attitude: "ONE FOR ALL AND ALL FOR ONE"

Hold each member accountable for results, but with a clear understanding that ethical standards

must NEVER be compromised

PROMOTE SOLELY ON MERIT

While Central Carolina Air Conditioning will compile the BEST record in the industry, our ethical

standards with customers, suppliers, and employees must remain impeccable. To maintain these standards

we WILL NOT TOLERATE:

Any act which will discredit the Company

Discrimination or harassment against another with regard to race, religion, sex, sexual orientation,

gender identity, national origin, age, or any other unlawful reason

Anyone who looks down on others

Corporate politics

Anyone who tries to move ahead of others at the expense of others

Use of illegal drugs

AND WE WILL HAVE FUN PARTICIPATING IN A GREAT ADVENTURE - - - BUILDING OUR

COMPANY!

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MISSION OF CENTRAL CAROLINA AIR CONDITIONING

OUR MISSION

It is the Mission of Central Carolina Air Conditioning to be regarded as the most capable

and highly professional mechanical service provider by our clients, our competition, and

our employees. We will deliver an excellent value at a fair price by providing

uncompromising quality of service, preventive maintenance, installation, and design

build systems that will exceed our client’s expectations.

We will ensure that our employees work in a safe and productive environment that

promotes a team effort. We encourage our employees and clients to share ideas to

improve the way we conduct business to make us a valuable and desired asset in our

community.

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PURPOSE OF THIS HANDBOOK

The purpose of this handbook is to provide guidelines for Central Carolina Air Conditioning employees.

These guidelines are not intended to be all inclusive, but rather to provide a general framework. The

information in this handbook is subject to change at any time and does not create a contract or any legal

rights, obligations, or guarantees, expressed or implied, on the part of the employee or Central Carolina

Air Conditioning.

This handbook and the policies contained herein will be updated by Central Carolina Air Conditioning

when management deems that it is necessary. A copy of the Employee Handbook is available at

http://ccacmech.com.

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EMPLOYMENT AT WILL

Your employment relationship with Central Carolina Air Conditioning is voluntary. Therefore, there is no

specified length of employment. As an employee of Central Carolina Air Conditioning you have the right

to terminate your employment at any time. Central Carolina Air Conditioning retains this same right, with

or without cause, regardless of any other Company documents or oral or written statements issued by any

Central Carolina Air Conditioning representative, with the exception of written contracts signed by the

President.

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EMPLOYMENT POLICIES

The policies of Central Carolina Air Conditioning are based upon the belief that the success of the

Company and its usefulness to the many communities it serves are primarily dependent upon its

employees. By developing the potential of each employee, both the employee and Central Carolina Air

Conditioning will reap the rewards.

EQUAL EMPLOYMENT OPPORTUNITY EMPLOYER

Central Carolina Air Conditioning is committed to providing Equal Employment Opportunities to all

employees and applicants without regard to religion, race, color, national origin, age, sex, sexual

orientation, gender identity, pregnancy, disability, genetic information, citizenship status, veteran status,

or any other protected status. This commitment to non-discrimination encompasses all areas of

employment, including recruiting, hiring, placement, training, promotion, discipline, termination, layoff,

recall, pay, benefits and any other terms or conditions of employment.

AMERICANS WITH DISABILITIES ACT

Central Carolina Air Conditioning is committed to complying with all applicable provisions of the

Americans with Disabilities Act, as amended (ADA). It is Central Carolina Air Conditioning’s policy not

to discriminate against any qualified employee or applicant with regard to any terms or conditions of

employment because of that individual’s disability as defined by the ADA. Under the ADA, a person with

a disability is an individual who: (i) has a physical or mental impairment that substantially limits one or

more major life activities; (ii) has a record of such impairment; or (iii) is regarded as having such an

impairment. A qualified person with a disability is someone with a disability who meets the necessary

skill level, work experience, education, training, licensing or certification, or other job-related

requirements of a position.

In accordance with the ADA, Central Carolina Air Conditioning will provide reasonable accommodations

by making changes in the work environment or by changing certain practices and procedures, including

the allowance of additional or extended leaves of absence, so long as those changes do not pose an undue

hardship on the Company, alter the essential functions of a job, or create a direct threat to health or safety.

Qualified individuals with a disability who believe they need a reasonable accommodation should contact

Human Resources.

UNLAWFUL WORKPLACE DISCRIMINATION AND HARASSMENT

Central Carolina Air Conditioning is committed to having and maintaining a work environment free from

unlawful discrimination, harassment or retaliation. In summary, we prohibit and will not tolerate any such

actions in our workplace. This policy applies to all employees at the Company, both management and

non-management, as well as to actions by our vendors, contractors, customers and visitors. As stated in

more detail below, any violation of this policy may subject an employee to disciplinary action, up to and

including immediate termination from employment.

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Definitions

Although it is often difficult to define harassment, it certainly may consist of unwelcome verbal, physical

or visual conduct that is based upon a person’s protected status, such as sex, age, race, color, religion,

national origin, disability, pregnancy, citizenship, veteran status, or other protected group status.

Discrimination is generally understood as any adverse employment action taken because of the

employee’s protected status. Retaliation means taking any adverse employment action against an

employee for resisting unlawful discrimination or harassment, for reporting a good-faith complaint or

concern about discrimination or harassment in the workplace, or for participating in good-faith in an

investigation concerning such a complaint or concern.

All forms of unlawful discrimination, harassment and retaliation are prohibited at Central Carolina Air

Conditioning, regardless of whether it is based on sex, race, age, sexual orientation, gender identity, or

any of the other protected status categories mentioned in this policy. As a result, Central Carolina Air

Conditioning employees must not engage in any such misconduct. In particular, sexual harassment is a

form of misconduct that needs more explanation.

Sexual Harassment

Our workplace must be free from unwelcome or inappropriate sexual remarks and actions, all of which

have no place at Central Carolina Air Conditioning. As a general rule, sexual harassment does not refer to

appropriate compliments or generally acceptable social behavior, but rather refers to unwelcome sexual

advances, requests for sexual favors, and other physical, verbal or visual conduct of a sexual nature when:

Submission to the conduct is an explicit or implicit term or condition of employment;

Submission to or rejection of the conduct by an individual is used as the basis for an employment

decision affecting that individual; or

The conduct has the purpose or effect of unreasonably interfering with an individual’s work

performance or creating an intimidating, hostile or offensive working environment.

All Central Carolina Air Conditioning employees must avoid any action or conduct which could be

viewed as sexual or another form of unlawful harassment. Such harassing conduct may include, but is not

limited to, unwanted sexual flirtations, advances or propositions; verbal abuse of a sexual nature; sexually

graphic comments; displaying or using inappropriate and sexually suggestive objects, pictures, writing,

language or drawings; and unwelcome touching or physical contact. Any such conduct is prohibited,

regardless of whether it is committed by persons of the same or opposite sex, or whether it rises to a level

that might legally constitute unlawful harassment.

All employees should also understand the importance of informing an individual whenever that person’s

behavior is unwelcome, offensive, in poor taste, or otherwise inappropriate. Individuals so informed

should comply immediately with such requests to stop the behavior. Any employee who experiences or

who believes they have experienced a violation of this policy must report their complaint or concern to an

appropriate member of management using the following procedure.

Reporting Procedure and Investigation

Any employee who believes that s/he has been subjected to unlawful harassment, discrimination or

retaliation in the workplace must immediately report the matter to Central Carolina Air Conditioning

management. As a general rule, this means reporting the matter to your direct supervisor. However, if you

are not satisfied with your supervisor’s response, or if s/he is the source of the behavior being complained

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of, or if you are otherwise uncomfortable speaking with your supervisor about the situation, you must

report the matter to any member of the Senior Management team. If the offending party is a member of

Senior Management, you are to report the activity to another member of the Senior Management Team.

There will be no retaliation against anyone for the good-faith reporting of harassment or discrimination, or

for cooperating with an investigation of a complaint or concern about harassment or discrimination.

Any allegation of harassment, discrimination or retaliation will be promptly investigated in a confidential

manner. Confidentiality will be maintained throughout the investigatory process to the extent practical

and appropriate under the circumstances. If an investigation confirms that a violation of this policy has

occurred, Central Carolina Air Conditioning will take appropriate remedial action, including disciplinary

action against any employee engaged in such conduct, up to and including immediate termination of

employment. Similar action may also be taken for inappropriate conduct, regardless of whether it rises to

the level of harassment, discrimination or retaliation under this policy.

Harassment, discrimination or retaliation against any employee as described in this policy is prohibited

and will not be tolerated. Any employee who commits such an act, or who otherwise engages in

inappropriate behavior also prohibited by this policy, is subject to disciplinary action, up to and including

immediate termination from employment.

OPEN COMMUNICATIONS

Central Carolina Air Conditioning actively promotes a policy of ongoing, open communications between

employees and management. Good communications are essential to your well being, which, in turn, is

essential to Central Carolina Air Conditioning’s productivity.

The success of Central Carolina Air Conditioning, as well as that of each individual employee, depends

upon constant, open communication between you and your supervisor. Your supervisor will offer you

instruction and training in new responsibilities, make work assignments, and answer your questions. You

should make it a habit to talk matters over with your supervisor and feel free to ask questions about any

policies or operating procedures which you do not understand. If your supervisor knows that something is

bothering you, they can attempt to help solve the problem. Both business and personal problems affect

your performance, which, in turn, affects the efficiency and well being of your co-workers and Central

Carolina Air Conditioning.

Central Carolina Air Conditioning realizes that you may occasionally have a complaint or question

concerning problems, misunderstandings, working conditions, or policies. Open communication between

you and your supervisor will establish a pleasant and effective working relationship. Prompt discussion of

a question or complaint will usually resolve the issue. Please do not let such issues go unresolved.

OPEN DOOR POLICY

Any employee with a complaint or grievance is encouraged to immediately and openly discuss the

problem with his or her supervisor. It is our sincere desire to provide all the assistance that we possibly

can to help you in your continued enjoyment of your position with us. If a complaint or grievance is not

resolved by your supervisor, you are encouraged to discuss it directly with a member of the Senior

Management Team. Any employee may take a grievance or complaint directly to a member of the Senior

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Management Team should he or she feel uncomfortable or threatened by first voicing the grievance to

their immediate supervisor.

MANAGEMENT PREROGATIVES

Central Carolina Air Conditioning retains all the traditional management prerogatives, including but not

limited to the right to determine the size and composition of the work force; to assign, supervise,

discipline and terminate any employee; to determine other terms and conditions of employment, such as

hours, pay benefits and schedules; to abolish or modify existing policies and procedures; to adopt new

policies and procedures; and to determine in its sole discretion the best manner and means of

administering the purposes of Central Carolina Air Conditioning.

CONFIDENTIALITY OF EMPLOYEE RECORDS

The Company’s philosophy is to safeguard personal employee information in its possession to ensure the

confidentiality of the information. Personal employee information will be considered confidential and as

such will be shared only as required and with those who have a need to have access to such information.

All hard copy records will be maintained in locked, secure areas with access limited to those who have a

need for such access. Personal employee information used in business system applications will be

safeguarded under the Company’s proprietary electronic transmission and intranet policies and security

systems.

If an employee becomes aware of a material breach in maintaining the confidentiality of his or her

personal information, the employee should report the incident to Human Resources. Human Resources

has the responsibility to investigate the incident and take corrective action.

DRUG AND ALCOHOL POLICY

Central Carolina Air Conditioning is committed to providing its employees a safe, efficient and

productive work environment. In keeping with this commitment, we have adopted policies to ensure that

employees perform their duties safely, efficiently and in a manner that protects their interests as well as

those of their co-workers and our customers. It is the policy of Central Carolina Air Conditioning to

create a drug-free workplace in keeping with the spirit and intent of the Drug-Free Workplace Act of

1988.

The improper use of controlled substances is inconsistent with the behavior expected of employees,

subjects all employees and visitors to our facilities to unacceptable safety risks, and undermines Central

Carolina Air Conditioning’s ability to operate effectively and efficiently. In this connection, the unlawful

manufacture, distribution, dispensation, possession, sale, or use of a controlled substance in the workplace

or while engaged in Central Carolina Air Conditioning business on or off of the Company’s premises is

strictly prohibited. Such conduct is also prohibited during non-working time to the extent that in the

opinion of Central Carolina Air Conditioning, it impairs an employee’s ability to perform on the job,

threatens the reputation or integrity of the Company or our customers and their safety.

All employees are required to comply with the Company’s substance abuse and testing programs which

are designed to meet requirements of federal, state and customer substance abuse testing requirements.

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Testing

Testing of Applicants

All applicants considered final candidates for a position will be tested for the presence of illegal

drugs as a part of the application process.

Any applicant who refuses to submit to, tampers with, or fails to pass the pre-employment drug

test shall be ineligible for hire for a period of 1 year.

For Cause Testing

Employees may be asked to submit to drug and alcohol testing if cause exists to indicate that their ability

to perform work safely or effectively may be impaired. Testing for cause should be based on specific

objective facts and reasonable inferences drawn from these facts. Factors which could establish cause

include, but are not limited to, the following:

Direct observation of an individual engaged in the use of alcohol while at work or drug-related

activity

A pattern of abnormal conduct

Unusual, irrational, or erratic behavior

Unexplained, increased or excessive absenteeism or tardiness

Sudden changes in work performance

Repeated failure to follow instructions or operating procedures

Violations of Company safety policies or failure to follow safe work practices

Unexplained or excessive negligence or carelessness

Discovery or presence of drugs or alcohol in an employee's possession or near an employee's

workplace

Odor or residual odor peculiar to some drugs or alcohol

Arrest or conviction for a drug-related crime

Information provided either by reliable and credible sources or independently corroborated

Evidence that an employee has tampered with a prior drug test

If a supervisor believes cause exists, the supervisor should report his or her findings and

observations to his/her supervisor.

Random Testing

Selection of employees for random drug testing shall be conducted through the use of a random number

generator or other neutral selection process.

Post Accident Testing

Employees will be tested for the presence of alcohol and drugs following an accident or other occurrence

that involves one or more of the following covered events: a fatality, an injury to an employee or other

individual, damage to vehicles and/or damage to other property.

Follow-Up Testing

All employees who have a positive drug or alcohol test and who have accepted the opportunity to enter a

counseling or rehabilitation program will be subject to unannounced follow-up tests for a two-year period

after returning to work or completion of any rehabilitation program, whichever is later.

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Additional Testing

Additional testing may also be conducted as required by applicable state or federal laws, rules or

regulations or as deemed necessary by the Company.

Central Carolina Air Conditioning may suspend employees without pay under this policy pending the

results of a drug or alcohol test or investigation.

Disciplinary Action

Violation of Central Carolina Air Conditioning’s Drug and Alcohol policy will result in disciplinary

action, up to and including termination of employment.

If an employee refuses to consent to testing, fails to appear for testing, tampers with the test or fails to

cooperate with the testing procedures, he or she will be disciplined up to and including discharge.

If an alcohol/drug test is positive, indicating the employee’s condition was caused by the use of alcohol or

illegal drugs, or the use of prescription drugs in a manner other than prescribed, the employee may be

offered the opportunity to enter a counseling or rehabilitation program as a condition of continued

employment. An employee who has accepted the opportunity to enter a counseling or rehabilitation

program will be subject to unannounced follow-up tests for a two-year period after returning to work or

completion of any rehabilitation program, whichever is later.

If the test results of an employee injured on the job indicates the employee was impaired at the time of the

injury, the test results will be furnished to the Company’s Workers’ Compensation insurance carrier and

the State Industrial Commission. Any employee who refuses to take an alcohol/drug test, or who fails to

cooperate or participate in these procedures, will be terminated.

Investigation

The Company reserves the right to search all vehicles, containers, lockers or other items on

Company property in furtherance of this policy. Individuals may be requested to display personal

property for visual inspection upon Company request.

Searches will be conducted under this policy only where the Company has reason to believe that

the employee has violated the Company's substance abuse policy.

Failure to consent to a search or to display personal property for visual inspection will be grounds

for discharge or denial of access to Company premises.

The Company will turn over all confiscated drugs to the proper law enforcement authorities.

Further, the Company reserves the right to cooperate with or enlist the services of the proper law

enforcement authorities in the course of any investigation.

WORKING WITH CUSTOMERS AND FELLOW EMPLOYEES

Central Carolina Air Conditioning expects each employee to treat every employee and customer

professionally and with courtesy. So there is no misunderstanding as to what Central Carolina Air

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Conditioning expects of its employees, principles and rules are communicated to all employees. The

following is a list of general principles. When applying any rule or when faced with a situation not

addressed by existing rules, these principles should be used for guidance.

Working with Customers

Employees should be courteous with all customers at all times. Use of loud, abusive or offensive language

is prohibited. If for any reason you are unable to deal with a customer, immediately contact a supervisor

or (if one is not available) another employee.

Since you reflect Central Carolina Air Conditioning's image to the public, it is imperative that you work

and conduct yourself in a professional manner. Your quality of work, down to the smallest detail, will be

looked upon as an indication of our competence, and is one of the factors considered in granting wage

increases.

The only successful companies are the ones that have success selling their products. Our definite intent is

to be successful. Therefore, each of us will have to do more than one job, or as the saying goes, we will

have to wear more than one hat.

Working with Fellow Employees

Everyone wants a pleasant place to work, and our success is based on an attitude of teamwork. Fighting,

the use of abusive or profane language, harassment of others, and verbal, mental or physical abuse is

prohibited in the workplace.

VIOLENCE IN THE WORKPLACE

Violence or threatened violence by an employee toward any other individual will not be tolerated. In

order to help provide a safe and healthful work environment, Central Carolina Air Conditioning has “zero

tolerance” for conduct that threatens, intimidates or coerces employees or members of the public at any

time while on our property or engaged in Company business.

Employees are prohibited from bringing any weapon into the workplace, while engaged in Company

business, or in Company vehicles.

In the event of violence or threatened violence in the workplace, efforts will be made to secure the safety

of all individuals on Company premises. It is the responsibility of all employees to be alert to any

suspicious workplace activity, potentially violent situation or violent individuals and immediately report

such situations to their supervisor, department manager or to Human Resources.

Employees who exhibit violent behavior or threaten violence toward another, or who otherwise violate

this policy, will be subject to discipline, up to and including immediate termination of employment.

ATTENDANCE AND ABSENCE FROM WORK

Central Carolina Air Conditioning achieves extraordinary results through highly committed, productive

team players, and every employee plays an important and necessary role at Central Carolina Air

Conditioning and meeting our customer commitments.

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Regular, timely attendance supports our team approach. For that reason, you are expected to be at work

and be on time. Employees are expected to be present at the beginning of their assigned work time, during

their regular work hours, and continue to work until the scheduled quitting time. When you do not meet

these expectations, you may be subject to disciplinary action, up to and including termination.

Employees who will be absent or tardy are responsible for telephoning their supervisor directly,

explaining why they will be out and estimating when he or she will report back to work. The employee

must notify their supervisor by telephone (email and text message are not acceptable) no later than the

employee’s scheduled start time. Failure to follow the required notification procedure may result in

disciplinary action including termination.

If you do not come to work and do not call for two consecutive workdays, Central Carolina Air

Conditioning will assume you have voluntarily resigned.

DISCIPLINARY POLICY

If your work falls below acceptable Company standards, or you do not follow Central Carolina Air

Conditioning rules, policies or procedures, you may be subject to disciplinary action. The Company may

choose, at its discretion, to use the form of discipline that is most appropriate for a given offense, which

may include verbal warnings, written warnings, suspensions and termination. Central Carolina Air

Conditioning may choose to take one or more of these steps as necessary and may skip one or more steps

progressing to immediate termination when it feels that circumstances warrant.

An employee may, of course, resign at any time. Central Carolina Air Conditioning may also terminate

the employment relationship without following any particular series of steps whenever it determines, in its

own discretion, that termination should occur.

EXAMPLES OF UNACCEPTABLE BEHAVIOR

While it is impossible to provide employees with a complete list of unacceptable behaviors, the following

are some examples of types of conduct that are considered unallowable and will generally result in

disciplinary action, including immediate discharge:

Violation of Drug and Alcohol policy

Violation of Violence in the Workplace policy

Unlawful harassment / creating a hostile work environment

The use of vulgar or profane language toward others, disparaging or derogatory comments or

slurs, verbal intimidation, exaggerated criticism, and name-calling

Theft or unauthorized removal of property belonging to the Company, our clients, or our

employees

Forging / falsifying documents or data, including but not limited to previously submitted

employment applications and timekeeping records

Improper or inappropriate treatment of customers

Violation of Confidentiality and Non-compete Policy and Agreement

Violation of absenteeism policy

Refusal to perform reasonable assigned work tasks

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Failure to adequately perform employment duties

Disclosure or use of confidential or proprietary information without authorization.

Failure to comply with work and safety rules

Violation of Company vehicle policy

Negligent damage/abuse/destruction of Company property, customer’s property, or the property of

another employee

Violation of any other policy, procedure, rule or guideline in this Employee Handbook or as

otherwise distributed or announced by the Company.

INTEGRITY

The integrity of Central Carolina Air Conditioning and its employees must be beyond question. Any

conduct reflecting poorly on the integrity of Central Carolina Air Conditioning or the personal integrity of

an employee of Central Carolina Air Conditioning will not be tolerated. Even the appearance of

impropriety must be avoided.

Integrity is mandatory throughout the Company in each employee and in all management. When we make

a commitment to each other or a customer, it should be fulfilled. If such becomes impossible, it should be

made clear. No other conduct will be accepted.

INDIFFERENCE

Central Carolina Air Conditioning wants all of our customers to be pleased with our association. Any lack

of attention or even an appearance of lack of attention toward a customer might well lose him. Therefore,

every person at Central Carolina Air Conditioning should be:

On time - in and out

Courteous

Accurate

Neat, pleasant and helpful

Show customers these things and we will never lose them. If you see any symptoms of a customer’s

dissatisfaction, report it to you supervisor immediately. Remember that our customers are the reason for

all of our paychecks.

COMPANY PROPERTY

All Central Carolina Air Conditioning property is for the transaction of business of Central Carolina Air

Conditioning and should not be used for personal purposes. Misuse or abuse of Central Carolina Air

Conditioning property is likewise prohibited.

CONFIDENTIALITY AND NON-COMPETE POLICY

It is the policy of Central Carolina Air Conditioning to immediately dismiss any employee performing

any work of the same nature as ours for another company or for himself. As a condition of employment,

all employees are required to sign a non-compete agreement with Central Carolina Air Conditioning prior

to their first day on the job. In simple terms, this agreement states that if an employee leaves the

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Company, he or she will not take our customers or fellow employees with him, or use information gained

during employment to benefit competition.

TELEPHONE POLICIES

Occasional use of the Company telephone for personal use is permissible (with the exception of long

distance calls), as well as occasional personal calls to you. This privilege should not be abused as to either

outgoing or incoming calls, as excessive personal phone calls are not permitted, whether on Company

phones or personal cell phones. A customer on "hold" or getting a busy signal could cause the Company

to lose the customer. As such, employees are encouraged to make personal calls during their lunch period

except during emergencies.

Employees whose job responsibilities include regular or occasional driving, whether in a Company

vehicle or personal vehicle are expected to refrain from using their phone while driving, and must not

send or read text messages or emails from a phone or similar device while driving. Safety must come

before all other concerns.

COMPUTER AND EMAIL USAGE

Central Carolina Air Conditioning maintains an information and e-mail system solely to help us conduct

business. Therefore, all computers and the data which is created, sent, received or stored in them,

including but not limited to documents and e-mail messages, are and remain at all times the Company’s

property, and Central Carolina Air Conditioning reserves the right to retrieve and read any such message

or document. Employees do not have a personal right to privacy on any matter created, sent, received or

stored in or from the Company’s computers or e-mail system.

Employees should use the Company’s computers, Internet access and e-mail for Company business, and

these resources should not be used for any purpose that is not sanctioned by the Company. Central

Carolina Air Conditioning reserves the right to determine what is or is not appropriate use of Company

provided resources.

The Company's computers or e-mail system shall not be used in any way to create, send, receive or store

messages or documents commonly considered to be offensive or improper, including but not limited to

sexual comments or images, racial slurs, or any messages, “jokes” or documents that may reasonably

offend someone on the basis of his or her race, color, religion, sex, national origin, age, disability, veteran,

or other protected status. The Company's Unlawful Discrimination and Harassment policy, as well as

other policies, procedures and rules of conduct, apply with equal force to an employee’s usage of its

computer system and e-mail.

No software may be downloaded or installed without the prior knowledge and approval of the Company.

In addition, the illegal downloading and copying of copyrighted software and/or other copyrighted

material is prohibited.

Any employee found to be in violation of this policy will be subject to disciplinary action, up to and

including discharge from employment.

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DATA STORAGE AND DISPOSAL

The nature of business conducted by Central Carolina Air Conditioning involves confidential information.

You may be handling sensitive information and are expected to treat this information as confidential both

inside and outside the Company. Breach of confidentiality is cause for disciplinary action, up to and

including dismissal.

All written and electronic documents containing any information about our Company, clients, vendors

and/or our employees should be stored in a secure location with access limited to only those with a need

to know. All such data should be only used by those authorized and only for authorized business

purposes.

When written and electronic documents need to be disposed of they should be disposed of in such a way

that no identifying information can be obtained from the documents. Paper documents must be shredded.

Computer CDs, hard disk drives and other electronic storage devices should be destroyed when they are

no longer needed by overwriting the data, wiping the data clean or by pulverizing or otherwise destroying

the device.

EMPLOYEE DRESS AND APPEARANCE POLICY

All Central Carolina Air Conditioning employees are expected to maintain good hygiene, as well as

appropriate grooming and dress standards as detailed below:

Uniforms

A clean, neat employee is a vital link between our customer and Central Carolina Air Conditioning. To

assure this, all field and shop employees, including warehouse and delivery personnel are required to wear

uniforms as a condition of employment. Provisions are made so that each employee will have a clean,

fresh uniform for each day of work.

After one full year of employment, the cost of uniforms and cost of cleaning uniforms is paid by the

Company. The first year's uniform costs are borne entirely by the employee.

Dirty uniforms are picked up and returned each week. Employees with missing uniforms must report

these losses immediately to supervisors. Uniforms unaccounted for or lost by the employee will be payroll

deducted. Uniforms requiring repairs or alterations must have a note attached to the uniform describing

the repairs or alternations required.

Employees Who Work in the Field:

Male employees must be clean-shaven or maintain well-groomed mustaches or beards.

Side burns must not extend past the middle of the ear.

Hair must be kept clean and neat. Male employees must keep hair length above the collar.

Fingernails must be kept clean.

Visible tattoos must be covered.

Facial jewelry (nose, eyebrow, tongue, etc.) regardless of gender is unacceptable. Earrings on male

employees are unacceptable.

Uniforms are issued to maintain our Company's professional image. Uniforms must be clean and

neat. Shirts must be worn tucked in. Pants are to be worn with a black or brown belt and work

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shoes must be clean. Only hats with the Company logo may be worn with the uniform. Booties are

considered part of the Company uniform when entering the customers' homes or company's office

building(s). Any alternatives that deter that image are unacceptable. Management reserves the

right to determine what is considered acceptable.

Employees Who Work in Sales:

Male employees must be clean-shaven or maintain well-groomed mustaches or beards.

Side burns must not extend past the middle of the ear.

Hair must be kept clean and neat. Male employees must keep hair length above the collar.

Fingernails must be kept clean.

Visible tattoos must be covered.

Facial jewelry (nose, eyebrow, tongues, etc.) regardless of gender is unacceptable. Earrings on

male employees are unacceptable.

Uniforms for Sales Employees include the Company logo golf shirt, worn tucked in with blue,

black or khaki slacks and a belt. Shoes should be black or brown and should be kept shined

(athletic shoes are unacceptable). Jeans are unacceptable attire. Sales Employees should dress in

the appropriate attire whenever working, regardless of the day of the week.

Employees Who Work in the Office:

Facial jewelry, except earrings for female employees, is unacceptable (including but not limited to

nose, eyebrow, lip or tongue piercing or rings).

Monday through Thursday, all Office Staff employees are expected to dress professionally in

Business Casual Attire. Business Casual Attire includes golf shirts or dress shirts for male

employees, worn tucked in, and dresses, blouses and skirts, slacks, or pantsuits for female

employees. Blouses or shirts that are meant to be tucked in may not be worn un-tucked. Skirts

must be no shorter than 4" above the knee. Female employees must wear blouses or tops that

cover the mid-section, with no bare skin showing, and appropriate undergarments. Appropriate

shoes must be worn, as athletic shoes and flip flops are considered unacceptable business attire.

Fridays are considered Casual Day. Appropriate attire includes jeans, casual shorts - no shorter

than 4" above the knee. T-shirts may not display unacceptable pictures, motifs, or wording.

Cutoffs, tank tops or other types of athletic or beach attire are unacceptable. Clean, well-

maintained athletic shoes are allowed on Fridays only.

Management reserves the right to determine what is considered acceptable.

NURSING MOTHERS

Central Carolina Air Conditioning supports our nursing mothers and will provide a reasonable non-paid

break time for an employee to express breast milk for her nursing child, up to one year after the child’s

birth. An appropriate place to express breast milk, other than a bathroom, that is shielded from view and

free from intrusion from co-workers and the public will be provided.

EMPLOYMENT OF RELATIVES

The hiring of relatives may give rise to a feeling of limited opportunity or favoritism among other

employees. For this reason, future employees may not work under the direct supervision of relatives. A

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relative is defined as a father, mother, son, daughter, brother, sister, wife, husband, grandparent,

grandchild or "in-law" or step-relationship.

TOBACCO

In order to maintain a safe and comfortable working environment, and to ensure compliance with

applicable laws, smoking and the use of other tobacco products in Company offices is prohibited. Use of

tobacco products is allowed in designated areas on the CCAC campus. Use is also allowed in the

company vehicles, but the employee is responsible for maintaining company property in clean and neat

condition. If company property is not respected, this privilege will be revoked for the offending

employee. Tobacco use is not permitted anywhere on the customers’ premises.

PARKING

Employee parking is provided adjacent to the facilities. To minimize crossing the driveway, office

employees should park in the areas in front or rear of 1800-A. Installation employees should park in the

rear of 1800-A. Vehicles must not be parked in NO PARKING AREAS. All Company vehicles should be

parked in the rear of 1800-A or 1800-D.

WALKWAY

There is a walkway marked off for employees traveling by foot from one building to the other. Employees

must use this marked off area to insure safety.

SOLICITATIONS

In the interest of maintaining a proper business environment and preventing interference with work and

inconvenience to others, employees may not distribute literature or printed materials of any kind, sell

merchandise, solicit financial contributions, or solicit for any other cause during working time.

Employees who are not on working time (e.g., those on lunch hour or breaks) may not solicit employees

who are on working time for any cause or distribute literature of any kind to them. This policy also

prohibits solicitations via Central Carolina Air Conditioning’s e-mail and other communication systems.

Furthermore, employees may not distribute literature or printed material of any kind in working areas at

any time.

Non-employees are likewise prohibited from distributing material or soliciting employees on Company

premises at any time.

HOUSEKEEPING

All employees of Central Carolina Air Conditioning are asked to assist in maintaining good housekeeping

on Company premises and inside Company vehicles. Employees are asked to pick up trash, cigarette

butts, beverage bottles and cans, etc. and place in proper receptacles. Keeping Company vehicles and

premises as clean as our own personal property will increase the morale of all of us.

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YOUR JOB

NEW EMPLOYEE ORIENTATION

Your immediate supervisor will explain your position responsibilities and will remain available to assist

you as you learn your new job. Feel free to seek assistance from your supervisor should you have any

questions about your job or your pay and benefits.

EMPLOYEES' RECORDS

An up-to-date personnel file is maintained in the Accounting Department for each employee. It is the

responsibility of the employee to advise the Accounting Department within one week of a change in

emergency contact, change of address, birth, death, marriage, divorce, courses completed, etc., affecting

the employee's personnel records.

INTRODUCTORY PERIOD

Candidates for job openings are selected on the basis of ability, competence, experience, and satisfactory

prior employment references. All new employees are hired on a twelve month introductory period.

Completion of the introductory period does not guarantee employment with Central Carolina Air

Conditioning. Employment with Central Carolina Air Conditioning is voluntary, and there is no specified

length of employment. An employee has the right to terminate his or her employment at any time, and the

Company retains this same right, with or without cause.

EMPLOYEE CLASSIFICATIONS

Every employee is classified in one of the following classifications. These classifications clarify expected

work hours, eligibility for benefits and overtime pay.

Regular, Full-Time: Regular, full-time employees perform whatever tasks are required based on

workload. Full-time employees generally work a minimum of 30 hours per week. Regular, full-time

employees are eligible for Company paid benefits after the required waiting period.

Regular, Part-Time: Regular, part-time employees work less than 30 hours a week and may work as little

as one day per week or weekends. These employees perform whatever tasks are required based on the

Company’s workload and business demands. Part-time employees are generally not eligible for Company

paid benefits unless specified by the specific plan document or policy.

Temporary: Temporary or seasonal employees are hired to work for a short period of time to assist the

Company in meeting short-term business needs. The number of hours worked may vary. Temporary

employees are not eligible for any Company benefits.

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EXEMPT AND NON-EXEMPT CLASSIFICATIONS

All employees are classified by the Fair Labor Standards Act (FLSA) as either Exempt or Non-Exempt

based on job duties and responsibilities.

Exempt Employees: Exempt employees are management, supervisory, professional, sales or

administrative employees whose positions meet FLSA standards. Exempt employees are exempt from

receiving overtime pay.

Non-Exempt Employees: Employees who do not meet the FLSA exemption standards are classified as

non-exempt, and generally work in non-supervisory, non-professional or non-administrative capacities.

Non-exempt employees are eligible for overtime pay at time and a one half of their regular rate of pay for

hours worked in excess of 40 hours in any one workweek.

You will be advised of your status at the time of hire, and any time a change in your job duties and

responsibilities result in a change of status. Feel free to contact Human Resources if you have any

questions.

OVERTIME

Overtime is authorized only at your supervisor's request. Due to the nature of our work, daily and weekly

work schedules and the number of hours per day and per week to be worked may be changed from time to

time by the Company. Changes in work schedules will be announced as far in advance as possible.

All non-exempt employees who work overtime will be paid at one and one-half (1 ½) their regular rate for

any hours worked in excess of 40 hours per workweek.

The Office employee workweek begins at 12:01 a.m. on Thursday and ends at 12:00 midnight on

Wednesday.

The Field employee workweek begins at 12:01 a.m. on Thursday and ends at 12:00 midnight on

Wednesday.

Holidays are considered days worked for purposes of computing overtime pay, however, vacation is NOT

considered days worked for purposes of computing overtime.

TIME CARDS

OFFICE PERSONNEL: Office personnel must report actual time worked by punching in and out at

their computer workstation. They are to punch in immediately upon arrival, punch out and back in from

lunch or other absence from their work shift then punch out for the day before leaving. If there is an error

in a punch, the employee can put an electronic note to that effect on their next punch and/or notify payroll

so that the error may be corrected.

SERVICE PERSONNEL: The daily time record for Service Personnel is the Service Ticket. Time is

recorded on each invoice and emailed to the office for input after each call is complete.

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PRODUCTION: The daily time record for Production personnel is the invoice/work order. Time is

recorded on each invoice and emailed to the office for input after each call is complete.

It is extremely important that each employee accurately record job numbers, job activity and hours

worked daily on timesheets. Also, every item removed from inventory or truck stock to be used on a job

must be accurately reported. Questions concerning this procedure should be directed to your supervisor.

Strict compliance is mandatory.

WORKING HOURS

OFFICE PERSONNEL

The office is open from 7:00 AM to 7:00 PM, Monday through Thursday, and 7:00 AM to 6:00 PM on

Friday. An answering service answers incoming calls during non-working hours for emergency service.

Your time schedule will be determined by your supervisor. Typically a one hour lunch break is provided,

which is non-paid.

FIELD AND SHOP PERSONNEL

Field and Shop employees' working hours vary with scheduling demands. Upon notification to the

supervisor, all field and shop employees are allowed a 1/2 hour non-paid lunch break. Two (2) ten minute

breaks are provided; one in the morning and one in the afternoon near the midpoint of each 4 hour time

segment, as practical.

24-HOUR DUTY COMPENSATION

Central Carolina Air Conditioning has a responsibility to its customers twenty-four hours a day seven

days a week. For each week of twenty-four hour Emergency Service Duty, the Technician will accrue

four hours of vacation time to be taken at a later date, in accordance with the vacation policy

requirements. Any hours worked during Emergency Service Duty shall be compensated according to

federal and state law and company policy.

LOANS TO EMPLOYEES

It is the policy of Central Carolina Air Conditioning not to allow advances on wages and/or salaries to its

employees, or to lend money on either a long or short-term basis. The exception to this rule is for

necessary and approved tool purchases. (Refer to Tool Program)

SETTLEMENT OF ACCOUNT

In the event an employee owes Central Carolina Air Conditioning, a regular weekly deduction will be

made from each paycheck until the account is paid. However, prior to granting purchases in tools, the

employee must agree to allow all outstanding balances withheld from his/her final check.

PERFORMANCE REVIEWS

At Central Carolina Air Conditioning, every employee receives an annual performance review by his

supervisor on or around the employee's anniversary date. Other performance reviews may be done at the

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supervisor's discretion. Job proficiency, attitude, appearance, proper paperwork, attendance, increased

value on the job, and self-development are important considerations.

PROMOTIONS AND TRANSFERS

It is the policy of the Company to fill vacancies by promoting from within whenever possible. Transfers

from department to department are also considered.

LAYOFFS

Central Carolina Air Conditioning recognizes the importance of steady year-round employment to each

employee. Every effort is made to get new customers throughout the area and to continue to expand sales,

thereby creating new jobs and securing present jobs. Should business slacken, layoffs could occur. An

employee's attitudes, skill level and abilities are as important as an employee's length of service in

determining promotions or layoffs.

RESIGNATION

If an employee wishes to terminate his employment, he should present his resignation to his supervisor at

least two (2) weeks in advance of the date he wishes to leave. The Company reserves the right to allow or

not to allow continuity of employment during the notice period. All training materials, the Employee

Handbook, invoices, forms, uniforms, and electronic devices and accessories, etc. issued to the employee

must be returned prior to the employee’s last day of employment.

Vacation pay and insurance benefits are explained elsewhere in this employee handbook or in the specific

plan document.

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HEALTH, SAFETY AND SECURITY

The safety and security of employees and the protection of Central Carolina Air Conditioning are of

utmost concern to management. Should you ever have any questions or concerns regarding safety or

security, contact your supervisor.

Central Carolina Air Conditioning management and employees must put safety first. You must report to

your supervisor any condition which you think might be unhealthy, unsafe, or which might result in an

accident. Should you become ill or injured on the job, report this immediately to your supervisor. You

should also be aware that records must be maintained of all reportable injuries or illnesses which either

require medical treatment or which result in lost workdays. If you have any questions or suggestions,

contact your supervisor.

SAFETY COMMITTEE

The purpose of the Safety Committee is to develop safety guidelines and programs, review all accidents

and make recommendations to ensure safe practices and a safe workplace. Each business unit has a safety

representative within this committee. All employees are expected to work safely within the approved

guidelines set forth by this committee. If you observe unsafe conditions, materials or tools, or an unsafe

act, please report these conditions immediately to your supervisor or to a Safety Committee member.

SAFETY POLICY

It is the policy of Central Carolina Air Conditioning to have a safe workplace, and to ensure that each

employee is informed of the proper procedures to follow in the case of an accident. It is the employee's

responsibility to follow safety rules as well as common sense safety precautions.

Following are some of our safety rules:

Eye protection must be worn when exposed to flying particles or other potentially hazardous

conditions.

Proper work shoes are required for all Production, Warehouse and Service Departments. Steel toes

are preferred.

Work gloves must be worn where hands are exposed to sharp objects or other hazardous

conditions.

All scaffolding with work platforms over 10' above the ground or floor must have guard rails.

Bend your knees and keep your back straight when lifting. Do not twist your body, instead shift

your feet. Get help or use material handling equipment for heavy or bulky objects.

Hard hats must be worn when and where required by the job or condition.

Each employee, when operating a Company vehicle, must observe all motor vehicle laws. When

backing a Company vehicle in a congested area, such as our parking lot, you must use a spotter, if

available.

Only use drop cords in good condition and grounded, as required. Any safety devices or

instructions for tools must be used.

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Each vehicle must have a proper first aid kit and fire extinguisher. Each driver is responsible for

periodic checking to be sure they are current and accessible.

Extension ladders must be used at such a pitch that the horizontal distance from the top support to

the foot of the ladder is about one-quarter of the working length of the ladder.

USE OF SHOP FACILITIES, EQUIPMENT AND COMPANY OWNED VEHICLES BY

EMPLOYEES FOR PERSONAL USE

Our insurance agency advises us that the liability and property damage coverage of our shop facilities and

vehicles extends to all uses that may be necessary for the normal conduct of Company business. They

further advise that it is NOT intended that our liability and property damage insurance coverage include

protection of shop facilities, Company vehicles or personnel engaged in personal business. Due to the risk

and liability that might be incurred should there be an accident, we cannot permit employees to use shop

facilities or Company-owned vehicles for personal use.

HAZARD COMMUNICATION PROGRAM

This written Hazard Communication Program is intended to meet the requirements of the North Carolina

Occupational Safety and Health Hazard Communication Standard 13 NCAC7C.0101 (a) (99). This

program is also intended to assure that all Central Carolina Air Conditioning employees are effectively

informed concerning existing and potential workplace safety and health hazards associated with the

storage, use and disposal of hazardous substances used at these facilities.

HAZARDOUS SUBSTANCE

Hazardous substances are those harmful or obnoxious materials which, during manufacture, handling,

transport, storage or use, may generate or release infectious, irritating, flammable, explosive, corrosive,

asphyxiating, toxic, or other dangerous fumes, gases, mists, vapors, fibers or ionizing radiation in

quantities likely to injure the health of persons coming into contact with them or to cause material damage

to property.

SAFETY DATA SHEETS

Safety Data Sheets: Central Carolina Air Conditioning maintains a current copy of all Safety Data Sheets

(SDS) for each material that is stored in the warehouse and is carried on a service or installation or

maintenance vehicle. An up to date SDS listing is maintained on the Company intranet. Please see your

supervisor to ensure that you know how to access this information.

LABELS AND OTHER FORMS OF WARNING

Chemical and gas manufacturers provide labels, tags and other markings for containers of hazardous

substances. This identification includes the following information:

Identity of the hazardous chemical

Appropriate hazard warnings

Name and address of the chemical manufacturer, importer, or other responsible party.

The Company also ensures that containers of hazardous chemicals in the work place are labeled, tagged or

marked with the identity of the hazardous chemical and appropriate hazard warning.

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Portable containers of hazardous chemicals do not have to be labeled if they contain chemicals transferred

from labeled containers, and which are intended only for the immediate use of the employee who

performs the transfer.

All labels on incoming containers must not be defaced in any way. Observation or other detection or

defaced labels must be immediately reported to supervisors so appropriate labels can be reapplied

immediately.

EMPLOYEE INFORMATION, EDUCATION AND TRAINING

The following employee information, education and training program is provided by the Company to

ensure employees know workplace hazards and the appropriate control measures.

New Employee Safety Training

Each new employee should be acquainted with any and all hazardous material that he would become

exposed to during a normal workday. This responsibility is placed upon the supervisor, as well as the

employee's trainer. It is the responsibility of each of us to see to it that we all work in a safe and prudent

manner. Each new employee should also receive a copy of the Central Carolina Air Conditioning

Hazardous Communications Program.

Retraining

It is the responsibility of each supervisor and each employee to read and follow the directions on any

product of which they come in contact. It is vital to the safe workplace that each employee use material in

a safe and reasonable manner. Whenever a new product is introduced to you, as an employee, you should

take the time to read the directions and all safety warning labels associated with that product. Each

employee will receive a copy of the Central Carolina Air Conditioning Hazardous Communication

Program, plus a list of Material Safety Data Sheets to be placed in his vehicle or to have available to him

at his work area.

Contractors

All contractors working on Company property are to be informed by Company management concerning

applicable workplace hazardous substances, which may expose the contractor's employees and

appropriate control measures.

Each contractor is advised by management that they must comply with all OSHA standards while

working on Company property. Also, proper controls will be established to assure Company operations

do not expose contractor employees and that the contractors operations do not expose Company

employees to safety and health hazards.

Copies of SDS concerning any chemicals the contractor's employees may be exposed to will be provided

to the contractor by management upon request.

Program Availability

The Company's Hazard Communication Program is available upon request to:

Employees

Designated employee representatives

OSHA representatives

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NIOSH (National Institute for Occupational Safety and Health) representatives

WORKER'S COMPENSATION

The Company provides Worker's Compensation Insurance for all employees. Medical expenses for job

related injuries are paid in accordance with the provisions of the Worker's Compensation Act. Any

employee injured at work must report the injury to their supervisor at once. Failure to inform the

employer within thirty (30) days after an injury or development of most occupational diseases, or the

refusal to accept medical services provided by the employer, may deprive the employee of the right to

compensation.

REPORTING ACCIDENTS

ALL ACCIDENTS AND INJURIES, NO MATTER HOW SLIGHT, MUST BE REPORTED AS SOON

AS POSSIBLE BY TELEPHONE TO SUPERVISORS. UPON RETURNING TO THE OFFICE, A

COMPLETE ACCIDENT REPORT MUST BE FILLED OUT AND SUBMITTED TO THE SAFETY

DIRECTOR.

RETURN TO WORK FOR OCCUPATIONAL INJURIES

OBJECTIVES:

Central Carolina Air Conditioning has three (3) primary justifications for instituting a Return to Work

Program.

1. To provide support to employees during recuperation due to a work related injury;

2. To provide employees with an alternative assignment during recuperation in order to maintain

desirable productivity; and

3. To educate and familiarize employees with the Return to Work Program prior to an injury.

ELIGIBILITY:

All Central Carolina Air Conditioning employees qualify for the Return to Work Program. Any employee

who is involved in a work related injury that results in a restriction on work activity will be evaluated via

the WorkSTEPS program for placement in an alternate assignment (if available).

RATE OF PAY:

During placement in a restricted job, the employee will receive his/her regular rate of pay until they return

to their regular job.

RESPONSIBILITY:

The Safety Director will coordinate all return to work activities with the assistance of the applicable

Department Head and employee.

SAFE WORKER REWARD PROGRAM

The Safety Committee at Central Carolina Air Conditioning wishes to reward those who work safely day

in and day out. Our challenge to you is to work without an accident from one December meeting to the

next December meeting, consistently year after year.

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Hourly field employees who work for 12 months without an accident will earn a safety award of 8 hours

with the option to be used as paid vacation hours or regular pay.

Hourly office employees who work for 12 months without an accident will earn a safety award of 4 hours

with the option to be used as paid vacation hours or regular pay.

Hourly field employees who work with a consistent two year safety record will earn a safety award of 16

hours with the option to be used as paid vacation hours or regular pay.

Hourly office employees who work with a consistent two year safety record will earn a safety award of 8

hours with the option to be used as paid vacation hours or regular pay.

Each hourly employee with a consistent safety record who has earned the two year safety award, will

continue each year thereafter to earn the two year safety award outlined above until such time he/she has a

break in their safety record. At that time, they must start the cycle all over again.

Working safely is important to each of us. Only by thinking about the task at hand and planning to work

safely can you prevent accidents. Focusing on what you are doing will prevent many accidents.

So that there are no misunderstandings, an ACCIDENT is a situation where personal injury or property

damage occurs and YOU are determined by the Safety Committee to be the cause of the situation. Some

examples are:

Cutting your hand while handling sheet metal

An auto accident not directly caused by another driver

Stepping through a ceiling

All accidents will be reviewed by the Safety Committee and their assessment will be final.

DISCIPLINE FOR SAFETY RULE VIOLATION

1. FIRST OCCURRENCE: WRITTEN WARNING

2. SECOND OCCURRENCE: WRITTEN REPRIMAND, IF WITHIN ONE YEAR

OF FIRST OCCURRENCE

3. THIRD OCCURRENCE: SUSPENSION FOR ONE DAY WITHOUT PAY, IF

WITHIN ONE YEAR OF SECOND OCCURRENCE

4. SUBSEQUENT OCCURRENCE: MAY RESULT IN TERMINATION

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REPORTING INJURIES

BE VERY CAREFUL. DON'T GET INJURED! BUT IF YOU DO, PLEASE FOLLOW THE

INSTRUCTIONS LISTED BELOW:

REPORT ALL INJURIES TO YOUR IMMEDIATE SUPERVISOR THROUGH OFFICE CONTACT

OR CSR LEADER.

Some injuries may not require medical treatment. These injuries should be reported in case

treatment is necessary at a later date.

Be familiar with attached information in case medical treatment or drugs are necessary.

Drug and alcohol testing must be done at the time an injury is reported.

Come to the office and get a "Worker's Compensation Medical Authorization" OR go to

authorized provider and call the office so that a "Worker's Compensation Medical Authorization"

can be faxed.

ACCIDENT INSTRUCTION FOR WORKER'S COMPENSATION WHEN AN ACCIDENT

OCCURS:

All accidents must be reported to the office.

Manager must assess injury in person or by information on the phone.

Even if no medical attention is required, you must fill out a WORKER'S COMPENSATION

FORM. This is to report to the State.

IF MEDICAL ATTENTION IS REQUIRED:

If possible, have employee come by the office to get a Worker's Compensation Medical

Authorization Form filled out and then go to the medical provider.

If the employee must go to a medical provider first, you should call the facility to which

you are directing him and advise of his arrival. You should also fill out and fax to that

provider a copy of the Worker's Compensation Medical Authorization Form.

If the injury requires urgent medical attention, the employee should go to the nearest

emergency facility.

UNLESS THE INJURY REQUIRES URGENT MEDICAL ATTENTION (EMERGENCY

ROOM), YOUR MANAGER IS TO CHOOSE THE FACILITY WHERE THE EMPLOYEE IS

TO GO FROM A LIST OF AUTHORIZED PROVIDERS.

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VEHICLES

COMPANY OWNED VEHICLES

Many employees drive Company owned vehicles. Some may be designated to take these vehicles to and

from home. It is cautioned that Company vehicles are not to be used for PERSONAL USE or during

NONWORKING HOURS. Failure to comply will result in the loss of the privilege of using a Company

vehicle for travel to and from home, or termination.

Employees operating Company vehicles must have a current North Carolina driver's license. Each

employee is responsible for seeing that his or her current driver's license is on file before driving a

Company vehicle. Each employee's driving record will be checked periodically. Violations that affect safe

operation and insurability may be grounds for dismissal, particularly where the Company relies on the

employee to drive in the performance of his or her job duties.

OPERATION OF COMPANY OWNED VEHICLES

Being issued a Company vehicle carries a tremendous responsibility. You must remember that each time

you start a trip that you are representing ALL of the employees and the Company. With this in mind, it is

very important that you obey ALL traffic laws and practice safe and courteous driving practices.

There are some rules you must understand and accept as a condition of operating a Company vehicle.

Only Central Carolina Air Conditioning employees are allowed in the vehicle.

You must call the police if the vehicle is involved in any accident, no matter how minor. A police

report is required by our insurance company to settle claims. In addition, you must report any

accident to your supervisor.

A full accident report must be filed within 24 hours with the Safety Director. Failure to immediately

call the police or to properly report accidents could result in the employee incurring liability for the

accident.

It is your responsibility to see that the vehicle is maintained: oil, gas, inspections, etc. Programs are

available to provide these services. If you have any questions see your supervisor or the Fleet

Manager.

The vehicle is to be used for Company business only. Use of the vehicle for anything other than

Company business will be grounds for disciplinary action, up to and including termination.

You must obey all traffic laws. Traffic tickets resulting from violations committed by employees

while driving Company vehicles are the responsibility of the employee to pay. If you receive traffic

violations while driving a Company vehicle you must report it to your supervisor.

It is your responsibility to keep the vehicle clean. Central Carolina Air Conditioning will provide

opportunities for you to have the outside washed. YOU must keep the inside clean and orderly.

Employees must refrain from using the phone while driving, and must not send or read text messages

or emails from a phone or similar device while driving.

TRUCK INVENTORY

Truck inventory carried on trucks is the responsibility of the employee to whom the truck is assigned.

Unaccounted for items will be charged to the employee.

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ALCOHOL USAGE FORBIDDEN

Drinking before or while driving Company vehicles is STRICTLY forbidden. Alcoholic beverages

(empty or full containers) found in Company vehicles will be considered grounds for dismissal.

FLEET SAFETY POLICY

Purpose

The purpose of this fleet safety program is for the protection of all employees; the protection of

equipment/materials and other Company assets; and for the protection of our consumers and the general

public.

Scope

All Employees who are reasonably foreseen to operate a vehicle in the course of doing business for our

Company, whether utilizing a Company vehicle or their own personal vehicle, are covered by this policy.

Only Central Carolina Air Conditioning employees with acceptable driving histories are authorized to

operate Company vehicles. Heightened levels of fleet safety may be added-to (and later removed from)

this policy as an addendum. Such changes will not take effect before proper notice to all employees is

provided. This policy applies: during all work-related activities; during any form of operation of

Company vehicles (on or off duty, passenger or driver); and during Company-sponsored functions (on or

off duty).

The Safety Director is responsible for administering this policy.

Driver’s License/Proof of Insurance/Moving Violations

All applicable employees shall:

Possess a valid Driver’s License from the state of residence. Non-resident state licenses will only

be accepted for the first month of employment. Thereafter, driving privileges with our Company

will be lost, until a resident-state Driver’s License is obtained.

Be required to immediately report to the individual responsible for administering this policy, if

your Driver’s License is suspended, revoked or by any means nullified for any period of time.

Written proof of any re-instatement by the applicable court will need to be provided to the

individual responsible for administering this policy, prior to the restoration of driving privileges.

If utilizing own personal vehicle for Company business, annually, provide proof of minimum (or

higher if noted addendum) state insurance coverage to the individual responsible for administering

this policy.

Motor Vehicle Reports (MVRs)

MVRs will be obtained and reviewed by the Company for all employees who are assigned Company

vehicles or who are anticipated to use their own personal vehicles for Company business under the

following guidelines:

Prior to the first day of employment;

Annually, at a time designated by our Company, without notice to employees;

Immediately upon filing any auto claim, regardless of fault.

Driving History (via MVR’s)

Based on any MVR reviewed by the Company, the following series of driving infractions are deemed

unacceptable and will result in an immediate loss of Company driving privileges for our Company:

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Any DUI/DWI conviction (as applicable to your state) in the last three (3) year period of time

from the date the MVR was reviewed. If charged with a DUI/DWI and not convicted, court proof

must be provided to the individual responsible for administering this policy;

Any combination of more than three (3) moving violations in the last (3) year period of time from

the date the MVR was reviewed;

Any current suspension, revocation or court action that nullifies your driving privileges with the

State.

Other infractions or combinations of infractions as identified in addendum.

Driving History (during employment with the Company)

While conducting business for our Company, the following issues are unacceptable and will result in an

immediate loss of driving privileges for our Company:

More than one ‘at-fault’ accident or conviction for a lack of seat belt utilization, as determined by

local law enforcement, in a three year period starting from the date of the first ‘at fault’

Involvement, as the driver, in more than three (3) auto claims (regardless of fault), in a three-year

period starting from the date of the first claim involvement.

Any current suspension, revocation or other court action that nullifies your driving privileges with

the State.

Any conviction, by local law enforcement, for:

Leaving the scene of an accident

DUI/DWI (as applicable to your State)

Vehicular homicide

Careless and reckless driving

A prayer for judgment continuation is considered a conviction

Refusal to authorize the running of a MVR, as required by this policy.

More than one absence from a Company-sponsored driver education training function in a three-

year period starting from the date of the first absence.

Any declination to attend driver education functions, as required by being the driver of an ‘at

fault’ auto claim, as determined by local law enforcement.

Failure to maintain or obtain a resident-state Driver’s License, as required by this policy.

Documented pattern of violation of this policy’s Basic Safe Driving and Vehicle Operation Rules.

Re-instatement of Driving Privileges (One-Time)

Driving privileges for our Company can be re-instated ONLY one time in your employment by

attending and successfully completing a driver education program, at your own expense and time,

within one month of the date of loss of driving privileges.

The driver education program chosen must be from a recognized provider or sanctioned body, and

consist of at least four (4) hours of instruction and/or hands-on application. Examples include, but

are not limited to: any National Safety Council Defensive Driving Course; any course referred by

a local or State court system, etc.

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Termination, lay-off or resignation with re-employment at any later point will not remove a loss of

your diving privileges with our Company.

EXCEPTION: History denoting DUI/DWI and/or during any Suspended, Revoked, or by any

means nullified effect to a Driver’s License.

Immediate Loss of Driving Privileges

Your immediate supervisor will by responsible for notifying you of your loss of driving privilege

and to take possession of all assigned vehicles and associated keys.

Ongoing transportation, if applicable, to/from any Company office/location or assigned job/work

site will be your responsibility.

One-time transportation, at the time of notice of immediate loss of driving privilege, to your home

residence will by provided if you are unable to find transportation on the day of the loss of driving

privileges. The manner, mode and timing of transportation will be left to the discretion of your

immediate supervisor.

Company Vehicle Maintenance, Upkeep and Damage

All damage and/or vehicle maintenance repair issues are to be immediately reported to the person

responsible for this policy. Written notice is preferred. Any vehicle that is felt to not be in a safe

condition shall not be operated. ‘Do Not Operate’ tags are to be placed on the steering wheel of all

such vehicles.

Quarterly, as established by the Company, all drivers of assigned Company vehicles will be

required to perform a safety inspection on their vehicle using the inspection form provided by the

Company.

Previously unreported damage or items in need of repair are to be immediately reported

Assigned vehicles are to be kept in safe, operational condition. This responsibility falls on

assigned drivers. Drivers will be held accountable for unreported damage to assigned vehicles.

Driver Safety Education Functions

The Company will annually provide/sponsor driver safety training functions. Attendance is

mandatory.

Any driver ‘at fault’, as determined by local law enforcement, in an auto claim will be required to

attend and successfully complete a driver education program at their own expense and time, within

one month of the date of the accident.

The driver education program chosen, for these ‘at-fault’ drivers, must be from a recognized

provider of sanctioned body, and consist of at least four (4) hours of instruction and/or hands-on

applications. Examples would include by not limited to: any National Safety Council Defensive

Driving Course; any course referred by a local or State court system, etc.

Accidents

Please follow these steps if involved in any vehicular accident:

Try to determine if anyone involved needs medical attention, and find a way to obtain it. As safety

allows, secure the scene of the accident. For safety sake, it may be necessary for you to remove the

vehicle(s) to a safer location. However, being convicted of ‘leaving the scene of an accident’ will

be immediate ground for loss of driving privileges.

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If possible via communication device, report the accident to local law enforcement. Always

request that a local law enforcement officer investigate. Then immediately contact your direct

supervisor. The following should be provided to your supervisor:

Whether immediate medical attention is needed by anyone

Location of the accident

Whether local law enforcement will be investigating.

AT NO POINT SHOULD YOU ADMIT OR PLACE FAULT for the accident. Simply state your

version of the events.

Your direct supervisor and/or other assigned personnel are required to immediately investigate all

‘at-fault’ or ‘undetermined fault’ accidents, all accidents involving serious property damage, and

all accidents involving injury to yourself or others.

If local law enforcement is not going to investigate (usually for less serious accidents), collect the

following information:

All information from everyone’s Driver’s License (double check everything for accuracy)

All information from all driver’s insurance cards

Written description of the damage of all property involved

Written description, with license plate number and state of issuance, for all vehicles

involved.

Pictures using company issued smart phone or tablet.

If immediately unable to report the accident to your direct supervisor, you must do so within

twenty-four (24) hours.

Anyone involved in an auto claim with our insurance company may be called into a Company

meeting to discuss and review the accident events for the purpose of future prevention of such

events that led to the accident.

Basic Safe Driving and Vehicle Operation Rules

All driver responsibilities outlined in our Company’s Fleet Safety Program are to be complied with,

including these Basic Safe Driving and Vehicular Operation Rules.

Drivers must ensure that all passengers, self-inclusive, wear the provided seat belts. No passengers

should be allowed in a vehicle if there are not individual seat belts for them. Similarly, no

passengers are allowed to ride anywhere else but where seat belts are provided (e.g. pick-up beds,

back of utility van, etc.)

Posted speed limits and other applicable traffic laws are to be followed. Job site speed limits are

never to exceed 15 miles per hour, unless otherwise indicated.

It is preferred that headlights are utilized at all times. However, it is required that headlights are

utilized under low visibility conditions and when required by traffic regulations.

Sun visors and sunglasses, prescription or accompanying contacts as applicable to your vision

needs, should be utilized when sunlight or glare is expected to impair vision.

Drivers are never required to operate vehicles that are felt to be unsafe. All damage and vehicle

maintenance issues are to be reported to the Company in accordance with established policy.

Equipment, tools, job materials and trailers pulled are to be properly secured. Drivers, not

passengers, will be held responsible for the securing of such items if involved in an auto claim.

Assigned drivers shall not allow unauthorized drivers to operate their vehicle. The assigned driver

not the unauthorized driver, will be held responsible within the guidelines for this policy, if the

unauthorized driver is involved in an auto claim or is discovered to have been driving.

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Drivers are required to familiarize themselves with any out-of-state or non-local in-state traffic

laws for which they may not be accustomed, in advance of vehicle operation in the new location.

Drivers are not to take unreasonable chances. The safest decision is the right decision. For

example, reading, eating or communication equipment utilization while driving is widely

acknowledged as an unsafe act. The safest choice would be to safely pull to the side of the road,

conduct your business, and then safely merge back into traffic. You will lose more time in an

accident than the couple of minutes this safe choice caused.

Drivers should not operate vehicles while taking any medication that will impair their driving

ability. Alcohol and/or illegal drug consumption or otherwise ‘being under the influence’ while

driving is strictly prohibited. Driver and passenger alcohol/or illegal drug consumption would be a

violation of our Company’s Drug and Alcohol policy.

Drivers should be mentally and physically rested and alert before operating their vehicle.

Hitchhikers and/or any non-employee are not allowed in Company vehicles.

Drivers are not to use assigned vehicles for any unauthorized towing, carrying of materials, etc.,

nor perform unauthorized vehicular modification to their assigned vehicles.

Drivers should familiarize themselves with defensive driving techniques and apply them to their

driving techniques.

Compliance with OSHA Standard 39CFR 1926.601

This policy is also intended to comply with OSHA standard 29CFR 1926.601 regarding motor vehicles

within off-highway assigned job sites. The standard does not apply to highway/road/street activities. Any

applicable State-approved OSHA Plan regulations will be addressed via addendum.

The following rules are for off-highway assigned job site vehicles:

Only vehicles with the following will be utilized:

With braking systems maintained in an operational manner, including: emergency braking;

parking braking; and/or, service braking;

With optional headlights and taillights;

With cabs with windshields and powered wipers;

With fenders (bumpers);

(If operating in predictably foggy or icy conditions) with operational defogging/defrosting

devices;

With no obstructed view to the rear, unless the vehicle has a reverse alarm audible above

the surrounding noise level OR the vehicle is only backed when an observer signals that it

is safe to do so;

Maintenance needs in these areas should be immediately reported in accordance with the

Vehicle Maintenance section of this policy. The vehicle is not to be operated until repairs

are completed.

All haulage vehicles whose intended load is loaded by means of cranes, power shovels, loaders,

etc., shall have adequate cab protection from load shifting and/or falling.

When transporting employees in such vehicles, each vehicle shall have the following:

seats intended for the employees firmly secured and adequate for the number of employees

to be carried;

seat belts and anchorage shall meet the requirements of 49CFR part 571;

tools and material secured to prevent movement when transported at the same time as the

employees;

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Vehicles with dump bodies, during maintenance or inspection work, shall have such bodies firmly

and permanently supported, with the capability of being locked into position to prevent an

accidental lowering of the dump body;

Hoisting and dumping operating controls, on applicable equipment, shall be guarded to protect

against accidental tripping to start-up;

All applicable vehicles to this section will be inspected at the beginning of each shift, using the

form developed for compliance with this standard.

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TOOL PROGRAM

TOOL REQUIREMENTS

Central Carolina Air Conditioning's unique Tool Program enables the employee to provide, repair and to

replace his/her own tools. Your supervisor will advise you of the weekly amount to be accrued in your

Tool Account. The funds in this account can be used under the direction of your supervisor to upgrade

and maintain your tools, plus purchase new tools you may need. Each quarter your supervisor will review

your tools with you. At that time, authorization will be issued to purchase or repair or replace tools.

Between inspections, emergency tool requirements will be authorized by your supervisor.

YOUR TOOLS

TOOLS OWNED BY YOU BELONG TO YOU. Tools purchased from your Tool Account allowance

belong to you. This allowance is intended to cover normal wear and tear of your tools. It is not a bonus.

You may not request the funds in lieu of tool purchases. You are required to use the money to purchase

tools utilized to perform your job.

Any skilled craftsman takes pride in the ownership of the tools of his trade. To assist you in providing and

maintaining your tools, Central Carolina Air Conditioning offers you a Tool Program unique to the

industry.

Your supervisor has a list of tools required for your job title, and will provide you with a weekly accrual

amount for your position.

All tools are to be furnished by the employee. To permit you to purchase tools at wholesale prices,

you may obtain a purchase order from the Company for tools. The Company offers an outstanding

tool reimbursement program.

Personal Property - the Company carries no insurance for the benefit of employees for damage or

loss of personal property or clothing.

NEW EMPLOYEES TOOL PURCHASE PROGRAM

All new employees must furnish their own tools. Central Carolina Air Conditioning understands that you,

as a new employee, may not own all the tools that you need to be successful in your position. To aid you

in purchasing the tools that you need for your job, you may use the Tool List guidelines to purchase tools

through the Company.

TOOL ACCOUNT

In order to assist Technicians in having the necessary tools to perform their job, Central Carolina Air

Conditioning provides the benefit of a tool account. This amount puts a sum of money into the account

each week to build funds to be used to purchase new tools or replace old tools. Central Carolina Air

Conditioning also provides financing of tool purchases and allows the use of the tool accrual account

funds to assist in making the tool note payments.

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TOOL ALLOWANCE CHART

Mechanics and Service Technicians $20.00 PER WEEK

Maintenance and Mechanics Assistants $12.00 PER WEEK

There are times when a technician may choose to sell some of his tools to another technician. The

purchasing technician may add this amount to his tool note. Central Carolina Air Conditioning will then

write a check to the selling technician, provided that the seller does not have a balance on his tool note. If

a balance remains, the amount will be applied to the tool note first, and any remaining balance will be

given to the selling technician.

A Tool List is made for each new employee. Tools are purchased by a Purchase Order issued by the

employee's supervisor. A blanket tool note is signed when hired with the tools listed as collateral. Should

the employee leave, he is required to pay off the note in full, either by cash or by deducting from his final

check. The tools are the property of the Company until paid in full.

There will only be a tool note when the balance exceeds $500.00. All non-interest bearing tool notes will

have a term of one year. The payment amount will remain the same until the note is paid off. If the

balance is increased with more purchases, the payment will be increased. The payment will not decrease

as the balance reaches the lower level.

Note payments are as follows:

AMOUNT OF NOTE DEDUCTION

$500 - $750 $15.00 per week

$751 - $1,000 $20.00 per week

$1,001 - $1,500 $30.00 per week

$1,501 - $2,000 $40.00 per week

$2,001 and up $50.00 per week

The tool allowance will be applied to the tool note in addition to the payment. The payment will continue

until the balance is paid off.

TOOL POLICY

The Tool Policy covers all employees that work in the field.

Each employee will be required to buy his/her required tools

Central Carolina Air Conditioning will provide all ladders, refrigerant recovery equipment,

recovery tanks, nitrogen cylinders and regulator and Personal Protective Equipment

Central Carolina Air Conditioning will provide larger type tools that you do not use every day.

Examples: Quickie Saws, Generators, Chiller barrel cleaning equipment and large drain cleaning

machines.

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The dollars in your Tool Account can only be used for tools. In the case that you leave Central

Carolina Air Conditioning, the dollars will go back to Central Carolina Air Conditioning.

Should you have questions about the tool account program see your supervisor.

All employees should have all the required tools that are on the current list for your position.

Safety Shoes purchased in agreement with the SAFETY SHOE PROGRAM will be treated as a

tool purchase and the employee’s portion will be added to the existing tool note, or deducted from

your tool account balance.

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BENEFITS AND TIME OFF

GROUP INSURANCE

After 90 days of employment, regular full-time employees are eligible for group insurance. Central

Carolina Air Conditioning currently offers medical, dental, vision, short-term disability, long-term

disability, and life insurance. For details of each of these coverages, refer to the specific plan document.

COBRA

The federal Consolidated Omnibus Budget Reconciliation Act (COBRA) provides employees and their

qualified dependents the opportunity to continue health and dental insurance coverage under Central

Carolina Air Conditioning’s health plan when a "qualifying event" would normally result in the loss of

coverage. Some common qualifying events are resignation, termination of employment, or death of an

employee; a reduction in an employee's hours or a leave of absence; an employee's divorce or legal

separation; and a child who no longer meets eligibility requirements.

Under COBRA, the employee or dependent pays the full cost of coverage at the Company’s group rates

plus an administration fee. Central Carolina Air Conditioning’s third party administrator provides each

eligible employee with a written notice describing rights granted under COBRA when the employee

becomes eligible for coverage under the Company’s medical, dental and vision insurance plans. The

notice contains important information about the employee's rights and obligations.

401-K PLAN

Central Carolina Air Conditioning offers a 401k plan to eligible employees. Refer to the plan document

for details about the plan.

PAID HOLIDAYS

After completion of six (6) months of employment, employees are eligible for holiday pay as follows.

Regular full-time employees are eligible for six (6) paid holidays each year. Holiday pay is based on the

employee’s regular base salary or hourly rate. Part-time employees are eligible for two (2) hours holiday

pay at their regular rate of pay for each holiday.

NEW YEAR'S DAY

MEMORIAL DAY

INDEPENDENCE DAY (JULY 4)

LABOR DAY

THANKSGIVING DAY

CHRISTMAS DAY

When a holiday falls on a Sunday, the following Monday is observed as that holiday. When a holiday

falls on a Saturday, the preceding Friday is observed. Unexcused absences prior to or after a holiday will

result in no holiday pay.

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VACATIONS

The Company provides paid vacation to employees for the purpose of rest and relaxation as follows.

Regular full time employees are eligible for one week of paid vacation after 90 days of consecutive

employment. If an employee leaves the company during their first year of employment, any unused

vacation will not be paid. Regular full time employees will be eligible for two weeks of paid vacation

after the completion of three (3) consecutive years of employment. Full time employees with six (6) or

more years of continuous employment will receive ONE additional day off for each year of continuous

service, up to a maximum of five (5) additional days. (This will give a total of 3 weeks for 10 years of

continuous employment.) When an employee reaches their 20th anniversary (20 years of consecutive

employment), they will earn one additional week of vacation for a total of 4 weeks.

After one year of continuous employment, part time employees are eligible for paid vacation in direct

proportion to their average weekly hours during the prior twelve (12) months.

An eligible employee must be in the employment of the Company at the end of his anniversary year in

order to earn vacation pay for that year.

Employees will receive vacation paychecks after returning from vacation.

Vacation will not be considered as time worked for overtime pay purposes.

Central Carolina Air Conditioning’s busy season is May 1 through August 30. Therefore, employees are

asked to schedule vacations prior to May 1, and after August 30.

Employees with vacation time may, with advance planning and permission, schedule vacation in days or

full weeks. Vacation requests should be submitted to the employee’s supervisor for approval four (4)

weeks in advance of the requested vacation time.

Vacations must be used each year and may not be carried over to a subsequent year. Vacation days not

used within a vacation year will be forfeited, and no payments will be made for forfeited vacation days.

An employee who is terminated for misconduct will forfeit all unused vacation. In addition, an employee

who elects to leave the Company without providing a minimum of two weeks’ notice will forfeit all

unused vacation.

BEREAVEMENT PAY

After one year of employment, an employee bereaved by the death of an immediate member of his or her

family will be paid his or her regular hourly rate or salary while off work up to and including two full

days. Immediate family members are defined as parent, child, sibling, spouse, or "in-law". Bereavement

will not be considered as time worked for overtime pay purposes.

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JURY DUTY

After one year of employment, regular full-time employees are paid an amount equal to the difference

between regular pay and the amount paid by the court. This policy will apply up to, but not beyond, three

days of jury duty.

LEAVES OF ABSENCE

Central Carolina Air Conditioning offers certain leaves of absence to eligible employees. All leaves of

absences shall be interpreted and applied in a manner consistent with the Americans with Disabilities Act

(ADA), the Family and Medical Leave Act (FMLA) and the Uniform Services Employment and

Reemployment Rights Act of 1994 (USERRA).

WORKSTEPS

Prior to returning to work from any leave of absence related to an employee’s injury or illness, the

employee is required to have the required WorkSTEPS fit for duty evaluation to determine the

employee’s ability to safely and successfully perform the essential functions of the employee’s assigned

position.

FAMILY AND MEDICAL LEAVE ACT

Eligibility and Leave Entitlement

Eligible employees who have worked for the Company for at least twelve months and at least 1,250 hours

during the twelve-month period immediately preceding the commencement of leave (note that periods of

absence from work due to or necessitated by USERRA-covered service is counted in determining an

employee’s eligibility for FMLA leave), and who work at a worksite with at least 50 employees in a 75

mile radius, may take up to 12 weeks of leave under the Family and Medical Leave Act (“FMLA”) per 12

month period (1) because of a serious health condition that makes the employee unable to perform the

functions of the employee’s job; (2) to care for the following individuals with a serious health condition:

the employee’s parent, spouse, son or daughter defined as a biological, adopted, or foster child, step-child,

legal ward, or child in which the employee is standing in loco parentis; (3) for incapacity due to

pregnancy, prenatal medical care or child birth, or to care for a newborn son or daughter, or for the

placement with the employee of a son or daughter for adoption or foster care. Son or daughter is defined

as a biological, adopted, or foster child, step-child, legal ward, or child in which the employee is standing

in loco parentis; (4) for a qualifying exigency arising out of the spouse, child or parent of the employee’s

covered active duty or call to covered active duty status in a foreign country in the National Guard,

Reserves, or Regular Armed Forces. Qualifying exigencies may include attending certain military events,

arranging for alternative childcare, addressing certain financial and legal arrangements, attending certain

counseling sessions, and attending post-deployment reintegration briefings. Qualifying exigency may also

include leave to care for a military member’s parent who is incapable of self-care when the care is

necessitated by the member’s covered active duty. Such care may include arranging for alternative care,

providing care on an immediate need basis, admitting or transferring the parent to a care facility, or

attending meetings with staff at a care facility; or, (5) to care for a spouse, parent, child, or next of kin

who is a current member of the Regular Armed Forces, the National Guard or Reserves and has a serious

injury or illness that was incurred or aggravated by the member in the line of duty on covered active duty

that may render the servicemember medically unfit to perform the duties of his or her office, grade, rank,

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or rating, and for which the servicemember is undergoing medical treatment, recuperation, or therapy; or

is in outpatient status; or is on the temporary disability retired list; or to care for a covered Veteran who

was a member of the Armed Forces and who was discharged or released under conditions other than

dishonorable at any time during the five year period prior to the first date the eligible employee takes

FMLA leave to care for the covered Veteran whose illness or injury manifested itself before or after the

member became a veteran, and is: (1) A continuation of a serious injury or illness that was incurred or

aggravated when the covered veteran was a member of the Armed Forces and rendered the

servicemember unable to perform the duties of the servicemember’s office, grade, rank, or rating; OR (2)

A physical or mental condition for which the covered veteran has received a VA Service Related

Disability Rating (VASRD) of 50 percent or greater and such VASRD rating is based, in whole or in part,

on the condition precipitating the need for caregiver leave; OR (3) A physical or mental condition that

substantially impairs the veteran’s ability to secure or follow a substantially gainful occupation by reason

of a disability or disabilities related to military service or would do so absent treatment; OR (4) An injury,

including a psychological injury, on the basis of which the covered veteran has been enrolled in the

Department of Veterans Affairs Program of Comprehensive Assistance for Family Caregivers.

An eligible employee is entitled to up to 12 weeks of unpaid FMLA leave in a 12 month period for

reasons 1-4 above. For reason 5 above, an eligible employee may take up to 26 weeks of unpaid FMLA

leave during a single 12 month period to care for an injured or ill covered servicemember or covered

Veteran. When combined with other FMLA qualifying leave, leave to care for an injured or ill covered

servicemember or covered Veteran may not exceed 26 weeks in a single 12 month period.

With the exception of Military Caregiver Leave, the amount of FMLA leave available is based upon the

FMLA leave taken in the preceding 12 month period, measured backward from the date an employee uses

any FMLA leave (rollback period). The 12 month period for Military Caregiver Leave to care for a

covered servicemember or covered Veteran is measured forward from the date an employee’s leave to

care for the covered servicemember or covered Veteran begins.

Family Leave for Birth or Placement of Child

An employee’s entitlement to FMLA leave for childbirth, adoption, or foster care expires at the end of the

12-month period beginning on the date of birth or placement of the child. In the case of unpaid leave for

the birth, care or placement of a child, intermittent leave or working a reduced number of hours is not

permitted, unless both the employee and the Company agree.

Spouses Working for the Company

If both spouses are employed by the Company, the combined leave for either birth, care and/or placement

of a child, to care for the employee’s parent with a serious health condition, or due to a family member’s

call to covered active duty shall not exceed 12 weeks. The combined leave for spouses working for the

Company is limited to 26 weeks when leave is to care for an injured or ill covered servicemember or

covered Veteran, or such leave is taken in combination with leave for either birth, care and/or placement

of a child, to care for the employee’s parent, or due to a family member’s call to covered active duty.

Serious Health Condition

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Under the FMLA, a “serious health condition” means an illness, injury, impairment, or physical or mental

condition that involves:

Inpatient-care (i.e., an overnight stay) in a hospital, hospice, or residential medical care facility,

including any period of incapacity (meaning inability to work, attend school, or perform other

regular daily activities), or any subsequent treatment in connection with such inpatient care; or

Continuing treatment by a health care provider. A serious health condition involving continuing

treatment by a health care provider includes:

o A period of incapacity of more than three (3) consecutive calendar days, and any

subsequent treatment or period of incapacity relating to the same condition, that also

involves: Treatment two or more times by a health care provider, by a nurse, or physician’s

assistant under direct supervision of a health care provider, or by a provider of health care

services (e.g. physical therapist) under others of, or on referral by, a health care provider.

The two or more visits must occur within 30 days of the beginning of the period of

incapacity, and the first visit to the health care provider must take place within seven days

of the first day of incapacity.

o Treatment by a health care provider on at least one occasion, which results in a regimen of

continuing treatment. The first visit to the health care provider must take place within

seven days of the first day of incapacity.

o A period of incapacity due to pregnancy, or for prenatal care.

o A period of incapacity or treatment for such incapacity due to a chronic serious health

condition, which requires at least two visits per year for treatment by a health care

provider, continues over an extended period of time (including recurring episodes of a

single underlying condition), and may cause episodic rather than a continuing period of

incapacity (e.g., asthma, diabetes, epilepsy, etc.)

o A period of incapacity, which is permanent or long-term due to a condition for which

treatment may not be effective. The employee or family must be under the continuing

supervision of, but need not be receiving active treatment from, a health care provider

(e.g., Alzheimer’s, severe stroke, or terminal disease).

o A period of absence to receive multiple treatments for an injury or condition that would

likely result in a period of incapacity of more than three consecutive calendar days if not

treated (e.g., chemotherapy or radiation for cancer, physical therapy for severe arthritis, or

dialysis for kidney disease).

Intermittent or Reduced Schedule Leave

In the case of unpaid leave for serious health conditions, the leave may be taken intermittently or on a

reduced hours basis only if such leave is medically necessary. FMLA leave may also be taken

intermittently or on a reduced hours basis for reasons relating to a family member’s Armed Forces

covered active duty or when an employee needs to care for a family member who has incurred an injury

or illness while on covered active duty. Where an employee requests intermittent leave or leave on a

reduced hours, the Company has the option, in its sole discretion, to require the employee to transfer to a

temporary alternative job for which the employee is qualified and which better accommodates the

intermittent leave or reduced hours leave than the employee's regular job. The temporary position will

have equivalent pay and benefits as the employee's regular job.

Application for Leave

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An employee requesting leave must notify Human Resources of the need for leave. The employee must

provide sufficient information for the Company to determine if the leave may qualify for FMLA

protection, and the anticipated timing and duration of the leave. Sufficient information may include that

the employee is unable to perform job functions, the family member is unable to perform daily activities,

the need for hospitalization or continuing treatment by a health care provider, or circumstances supporting

the need for military family leave. Employees also must inform the Company if the requested leave is for

a reason for which FMLA leave was previously taken or certified. In those circumstances when the

approximate timing of the need for leave is not foreseeable, the employee must provide the Company

notice of the need for FMLA leave as soon as practicable, depending on the facts and circumstances of the

situation. This ordinarily means that the employee must at least provide verbal notice to the Company

within one or two business days of when the need for leave becomes known to the employee.

Notice of Need for Leave

When the necessity of leave is foreseeable due to the expected birth or placement of a child, the employee

must provide the Company at least 30 days notice of the employee's intention to take leave. If the date of

birth or placement of a child requires the employee's leave to begin in less than 30 days from the date of

notice to the Company, the employee must provide such notice as soon as practical.

Where the need for leave is for reasons relating to a family member’s Armed Forces covered active duty

and such leave is foreseeable, the employee must give notice as soon as is reasonable and practicable.

Where the necessity for leave is due to a family member's or an employee's own serious health condition

and is foreseeable based on planned medical treatment, the employee must:

i) Give at least 30 days notice, or as soon as practical if treatment starts in less than 30 days; and

ii) Consult with the Company and make a reasonable effort to schedule the treatment so as not to

unduly disrupt the operation of the Company, subject to the approval of the health care provider.

Certification of Leave

Any leave request based on a family member's or employee's own serious health condition or for military

leave must be supported by the appropriate certification, which will be provided to the employee by

Human Resources. Such certification should be provided as soon as possible and not later than 15 days

after request, absent extenuating circumstances. The certification form must be thoroughly completed and

returned to Human Resources. Incomplete certifications will be returned to the employee, who will then

have seven (7) days in which to obtain the needed information. If the employee never produces the

certification, or does not cure the deficiencies of the incomplete certification, the employee’s absence

shall not qualify as FMLA leave, and the absence will be treated in accordance with the Company’s

attendance policy.

Scheduling FMLA Leave

Whenever possible, and subject to a health care provider’s approval and certification, when planning

medical treatment, employees taking FMLA leave must consult with the Company and make a reasonable

effort to schedule the leave so as not to unduly disrupt the Company’s operations. Employees are

expected to consult with the Company prior to scheduling treatment in order to work out a treatment

schedule that best suits the needs of both the employee and the Company. If an employee who provides

notice of the need to take FMLA leave on an intermittent leave basis for planned medical treatment fails

to consult with the Company to make a reasonable attempt to arrange the schedule of treatment so as not

49

to unduly disrupt the Company’s operations, the Company will initiate discussions with the employee and

ask the employee to attempt to make such arrangements, subject to the approval of the employee’s health

care provider.

Substitution of Accrued Paid Leave

FMLA leave is generally unpaid; however, certain kinds of accrued paid leave may be used for FMLA

leave at your option or as required by Central Carolina Air Conditioning. As a general rule, the Company

requires that any form of paid leave, such as any accrued but unused Vacation, and any applicable

Workers’ Compensation leave be used simultaneously at the start of the FMLA leave, to the extent that

the circumstances surrounding the FMLA leave meet the Company’s usual requirements for the use of

paid leave. Once accrued paid leave has been exhausted, any remaining FMLA leave would be unpaid.

Health Insurance

Employees taking FMLA leave are entitled to maintain health benefits while on leave under the same

terms and conditions as when they were on the job. This means that the employee is required to make

arrangements to continue making payments on his/her portion of the health insurance premiums on a

monthly basis. Failure to pay the employee’s share of health insurance premiums may result in a loss of

insurance coverage. If an employee uses paid leave during the FMLA period the employee portion of

insurance premiums will continue to be deducted from the paycheck.

Restoration of Employment

Employees who return to work from an FMLA leave of absence will generally be restored to their

previous position or an equivalent position with equivalent benefits, pay and other terms and conditions of

employment. However, if, upon the expiration of an employee’s FMLA leave, the employee is unable to

perform an essential function of his/her position because of a physical or mental condition, including the

continuation of a serious health condition, a determination will be made based on the specific

circumstances with regards to additional and/or extended leave for the employee. If, due to an employee’s

own medical condition, he/she is no longer able to perform the essential functions of his/her original job,

the Company may transfer the employee to an alternative position for which he/she is qualified, if such a

position is available. However, if an employee would otherwise have ceased to be employed at the time

that the employee seeks reinstatement, regardless of FMLA leave being taken, the employee will not be

entitled to reinstatement.

Accrual of Benefits

During FMLA leave, the employee shall not accrue employment benefits such as paid leave. Employment

benefits accrued by the employee up to the day on which family leave of absence begins will not be lost.

The FMLA provides that taking leave will not result in the loss of accrued benefits, but does not require

the Company to credit the employee’s service during the leave if the policy does not provide for crediting

service during other unpaid leave.

Repayment of Health Insurance Premiums

If any employee fails to return from leave for reasons other than: 1) the continuation, recurrence, or onset

of a serious health condition which would entitle the employee to FMLA leave; 2) the continuation,

recurrence, or onset of a covered servicemember’s serious injury or illness which would entitle the

employee to FMLA leave; or 3) other circumstances beyond the employee’s control, the employee will be

50

required to reimburse the Company for the full cost of all health insurance premiums paid on the

employee’s behalf during the period of FMLA leave.

Updates of Status and Intent to Return to Work

The Company will require an employee on FMLA leave to report periodically on his or her status and his

or her intent to return to work, and also periodic re-certification of the medical condition. An employee

taking leave due to the employee’s serious health condition is required to obtain certification that the

employee is able to resume work prior to the return from any FMLA leave.

FMLA leave will run concurrently with all FMLA qualifying leaves, including, but not limited to,

workers’ compensation and short-term disability. The Company’s Family and Medical Leave Policy is in

full compliance with the Family and Medical Leave Act and applicable state and local law. All questions

regarding leaves of absence should be directed to Human Resources.

PERSONAL LEAVE OF ABSENCE

Central Carolina Air Conditioning recognizes the needs of employees who may require time off in addition

to vacation and personal days, or when the FMLA does not apply. Therefore, Central Carolina Air

Conditioning may grant an unpaid, personal leave of absence for a maximum of 1 week under certain

circumstances. Depending on extenuating circumstances, or if the need for leave is related to the employee’s

own medical condition, Central Carolina Air Conditioning may extend the personal leave of absence.

Before a personal leave of absence without pay may be granted, all vacation and personal days must be

used, subject to terms of any short-term disability insurance plan, if applicable. In those instances where

the need for leave is due to a work related injury or illness, Workers Compensation benefits may apply. All

requests for a personal leave of absence under this policy must be approved by your direct supervisor and

other appropriate members of Central Carolina Air Conditioning management.

During the personal leave of absence, the employee shall not accrue employment benefits such as paid

vacation and personal days. Employment benefits accrued by the employee up to the day on which the

personal leave of absence begins will not be lost.

After the period of personal leave has expired, employees are expected to return to work on their next

regularly scheduled work day. If an employee does not timely return to work, as a general rule he or she

will be considered to have voluntarily resigned from employment with Central Carolina Air Conditioning.

However, if the employee is unable to return to work due to a medical condition, the employee must engage

in an interactive discussion with Central Carolina Air Conditioning regarding consideration for additional

leave, and Central Carolina Air Conditioning will then make a determination regarding the request.

If employment is terminated under this policy, an individual may reapply for employment subject to all

requirements in place at the time of reapplication. If a former employee is offered a position, he or she will

be treated as a new hire and will not receive any credit for prior service except where required by law or by

a particular defined benefit plan. Generally, this means that he or she will be paid the base rate for the

position applied for and will have to go through the initial wait period before receiving benefits.

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Please see your supervisor or Human Resources if you need to make a request for a personal leave of

absence.

When you return from a personal leave of absence, Central Carolina Air Conditioning will generally attempt

to place you in the job you left. However, Central Carolina Air Conditioning cannot guarantee that an

employee’s job will remain available or that a comparable position will exist when the employee returns

from an unpaid leave. If the position or another position for which the employee is qualified is not available,

he/she will normally be terminated.

LEAVES OF ABSENCE AND INSURANCE BENEFITS

FMLA Leave of Absence

If an employee is out on an approved FMLA Leave, Central Carolina Air Conditioning will continue to pay

the Company’s normal portion of the employee’s elected benefit premiums. However, the employee must

make arrangements with Human Resources to pay his/her portion of the employee’s elected insurance plan

premiums to ensure continuation of coverage, or coverage may be terminated.

Personal Leaves of Absence (Non-FMLA) – Up to 60 Days

If an employee is out on an approved Personal Leave of Absence for up to 60 days, Central Carolina Air

Conditioning will continue to pay the Company’s normal portion of the employee’s elected benefit

premiums. However, the employee must make arrangements with Human Resources to pay his/her portion

of the employee’s elected insurance plan premiums. Failure to pay the employee’s share of health insurance

premiums may result in a loss of insurance coverage.

Personal Leaves of Absence (Non-FMLA)– More than 60 Days

Central Carolina Air Conditioning’s health insurance plans define a covered employee as one who is

actively at work, working 30 or more hours per week on a consistent basis, and who is otherwise eligible

for coverage. Due to insurance plan requirements, health insurance benefits for covered employees whose

approved Personal Leave of Absence extends beyond 60 days will be terminated at the end of 60 days, and

the employee will be offered COBRA continuation of applicable benefits via the Central Carolina Air

Conditioning COBRA administrative service. For additional details regarding COBRA, refer to the

COBRA policy included in this Employee Handbook.

Return to Work Following Leave of Absence

An employee whose insurance benefits have been terminated may be subject to the required waiting period

for applicable insurance coverages upon return to work following a leave of absence. Please refer to the

specific plan document regarding reinstatement of coverage.

WORKERS COMPENSATION

Job related disabilities are covered through Workers' Compensation Insurance paid by the Company for

eligible employees. Medical benefits begin immediately. Disability benefits do not begin until the eighth

day of disablement.

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SALES TO EMPLOYEES

It is the policy of the Company to sell employees merchandise for their personal use at 10% above our

cost, plus tax. All such merchandise is sold on a CASH ONLY basis, unless specific arrangements for

credit are approved in advance by the Company. The Company does not warranty or guarantee such

items, except for the original manufacturer's warranty or guarantee.

EMPLOYEE CHARGES FOR SERVICE, EQUIPMENT AND LABOR

A major benefit for Central Carolina Air Conditioning employees is the reduced costs they pay to have

the Company provide a service at their home or to purchase equipment or material through the Company.

Only Central Carolina Air Conditioning employees are eligible for this benefit.

SERVICE - An employee is eligible for this benefit upon employment with Central Carolina Air

Conditioning. Any employee that provides service at their personal home must notify their supervisor

before the service is done, if possible. They will be responsible for reimbursing the Company for any

inventory used at the rates listed below. The employee is responsible for paying the cost as listed below at

the time of service.

LABOR - The employee will pay a cost of one half the normal labor rate for labor provided.

MATERIAL - The employee will pay the entire cost of any material purchased or used at their home plus

10%.

EQUIPMENT - The employee will pay the entire cost of the equipment plus shipping, if applicable, plus

10%. An employee may not install equipment at their home unless they have prior approval from Bill

Corriher or Bobby Allison.

WHEN A SERVICE CALL IS RUN, THE CSR MUST POST THE CALL AS IF IT WERE CHARGED

AT REGULAR PRICES. A COPY OF THE INVOICE COMPLETE WITH MATERIAL COST AND

LABOR HOURS MUST BE SUBMITTED TO THE ACCOUNTING MANAGER BY THE CSR THAT

DISPATCHED THE CALL. THE ACCOUNTING MANAGER WILL ADJUST THE INVOICE AND

CHARGE THE EMPLOYEE ON THEIR NEXT PAY CHECK.

The employee will receive all the manufacturer's warranties. The cost for the installation must be paid

upon completion of the work. The employee may have Central Carolina Air Conditioning install their

equipment and will be charged as follows:

Equipment & Material - The employee will pay the total cost of the equipment including shipping

plus 10%.

Labor - The employee will pay the total cost of the labor plus 20%. The employee will be

responsible for the labor cost charged at the service rate listed above if a call is run after the

installation is inspected.

Permits/Inspections - All work installed by Central Carolina Air Conditioning employees will be

permitted and inspected. The employee will bear the cost of those charges with the same 10%

mark-up. Any additional work to be done to correct an existing situation at the employee's home to

meet the current code will be paid by the employee.

53

These rates are for the personal residence of the employee only. All other properties will be charged at

prevailing rates. When work is needed at an employee's home, it must be scheduled through the

Residential CSR manager before work is performed. Every attempt will be made to accommodate the

employee, but we all must remember that our customers must come first.

TRAINING/PUBLICATIONS

Central Carolina Air Conditioning strongly supports the education, training, and career development of its

employees, both full and part-time, to ensure a competent and productive work force. Such growth is

available to you through internally designed and administered training programs, on-the-job training,

approved external training, and some professional associations.

A variety of classroom and self-study training programs are available at Central Carolina Air

Conditioning. Our Corriher Training Center provides a pleasant atmosphere for the purpose of developing

you to your highest potential. The Company maintains an audiovisual closed circuit TV training facility

located in the Center to train sales personnel, CSR, servicemen and installers. These on-going training

programs are designed to train new employees, upgrade existing employees to new job classifications, and

to cross train employees to qualify them for work in more than one job classification. Discuss these

internal training programs with your supervisor to determine those that would be most appropriate for

you.

EDUCATIONAL ASSISTANCE

The Company encourages educational courses for its employees, which will lead to further personal

development in related fields. Based on written approval by the employee's supervisor before enrolling,

the Company will pay 50% of the cost of such courses when the course is satisfactorily completed with a

passing grade. The Company will not pay any employee's cost of dues or subscriptions for any

organization.

EMPLOYEE REFERRALS

You are encouraged to refer qualified persons as potential employees regardless of religion, race, creed,

color, national origin, age, sex, disability, citizenship or veteran status, or any other protected status. You

will be rewarded for each referral hired by Central Carolina Air Conditioning with a bonus.

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RECEIPT AND ACKNOWLEDGEMENT OF EMPLOYEE HANDBOOK

I have received a copy of the Central Carolina Air Conditioning Employee Handbook, have had the

opportunity to ask questions in order to clarify anything that I do not understand, and know who to

contact should I have any additional questions in the future. I understand that the policies, rules and

benefits described are subject to change at the sole discretion of Central Carolina Air Conditioning at any

time. I understand that this handbook replaces (supersedes) all other previous handbooks of Central

Carolina Air Conditioning as of September 30, 2015.

I further understand that my employment is terminable at will, either by myself or Central Carolina Air

Conditioning, regardless of the length of my employment or the granting of benefits of any kind,

including but not limited to 410k benefits which provide for vesting based upon length of employment.

I understand that no contract of employment other than “at will” has been expressed or implied, and that

no circumstances arising out of my employment will alter my “at will” employment relationship unless

expressed in writing, with the understanding specifically set forth and signed by myself and Central

Carolina Air Conditioning.

I understand that the content is subject to revision at any time without advance notice, subject to

applicable law, and should the content be changed in any way, Central Carolina Air Conditioning may

require an additional signature from me to indicate that I am aware of and understand any new policies.

_____________________________________________ _______________________

Employee’s Printed Name Position

______________________________________________ _______________________

Employee’s Signature Date

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