Employee Handbook

Effective: September 1, 2003 1

Table of Contents
Introduction
Welcome.4 Introduction....4 At Will Policy5 Equal Opportunity5 New Employee Orientation6 Acknowledgement..6 Handbook Acknowledgement Form7

Employment Standards
Employee Classification8 Employee Privacy.9 Computer, Telephone, Internet, & Email..9 Resignation/Termination10

Compensation and Benefits

Pay Policies10 Work Schedule11 Absences and Tardiness11 Benefits11

Leave and Time Off

Vacation..13 Holidays..14 Other Paid Leave14 Leave of Absence..16

Employee Performance
Performance Appraisal Process.17 Workplace Behavior..17 Health and Safety20

Employee Conduct
Drugs and Alcohol.21 Trade Secrets...22 Conflicts of Interest.22 Discrimination and Harassment.23 Complaint Procedures..24

Welcome
Welcome to Delmarva Property Management, LLC (hereinafter referred to as Delmarva Property Management or the Company). We are very pleased to have you working with us. Your decision to join our team and become a part of the Companys future growth and success will be one of mutual benefit.

Introduction
Delmarva Property Management was founded in 2003 to provide third-party, property management services. The company manages thousands of units in apartment communities and commercial buildings in Delaware, Maryland and Virginia. From privately owned properties to corporate multiple holding, Delmarva Property Management tailors its approach to meet the individual needs of each owner whether it includes repositioning, capital management, special subsidiary programs or daily operations. Delmarva Property Management is committed to maintaining the standard of care for the industry and providing the residents of its communities a home that is well maintained and cared for. Complete dedication to residents is what creates longevity and stabilizes Delmarva Property Management communities. Delmarva Property Management has set high standards of behavior and expects the same from all of its employees. Each employee must assume full responsibility for the Companys reputation within the community. Employees are expected to be uncompromising in their honesty and integrity, and always make sure their personal conduct is the very best it can be. A moment of carelessness or discourtesy may jeopardize the good will the company has been building for years.

Employment At-Will Policy

We happily welcome you to the Delmarva Property Management team. We hope to provide our employees with a long, positive, and rewarding experience. Employment with Delmarva Property Management is voluntary and employees are free to resign at any time, with or without cause, and with or without notice. Similarly, Delmarva Property Management is free to end the employment relationship at any time, with or without cause, and with or without prior notice. The At-Will nature of the employees employment relationship cannot be changed, waived or modified except in an individual written employment agreement signed by the employee and the Chief Executive Officer of the Company.

Equal Opportunity Employment

Delmarva Property Management is committed to providing equal opportunity in employment regardless of ancestry, race, color, religion, national origin, sex, age, sexual orientation, mental status, handicap, gender, disability, genetic characteristic, veteran status, or any other basis prohibited by federal, state or local laws. This policy applies to all employment terms and conditions including, but not limited to, compensation, decisions, benefits, disciplining, hiring, promotions, transfers, terminations and training.

New Employee Orientation

Each new employee is expected to spend at least two weeks working with and observing a regional manager go through the process of managing a property and interacting with the clients and residents of our communities. The new employee will then remain on a sixty day trial period. Once the sixty day trial period has been completed the new employee, regional manager and human resource manager will meet to answer any questions and evaluate the performance of the new employee. At the time of the meeting, which will be scheduled by the new employees regional manager, all parties should be in agreement that they are comfortable with the employees ability to work independently. If all parties are not in agreement it will be determined at the time if the employee will need further training with the regional manager or if termination is in the best interest of the Company and the employee.

Acknowledgement
The purpose of the Delmarva Property Management Employee Handbook is to provide a general overview of the Company employment policies, procedures and benefits. This book will serve as a convenient source of reference as questions arise concerning employment and benefits; however, it does not cover all subjects in detail. Your regional manager, Human Resources and other Delmarva Property Managements team members are ready to answer specific questions and provide additional information not covered in this Handbook. Please review the policies, procedures, and benefits described in the Handbook. You will be asked to affirm that you have read, understood, agree to abide by and acknowledge your receipt of this Employee Handbook. Upon completion and acknowledgement of this manual, please read the following statements, sign below and return your signed form to your human resource manager.

Employment Handbook Acknowledgement

I, _______________________, have read the handbook in its entirety and fully understand what is expected of me and the demeanor I must display towards other employees, managers, clients and residents. I am completely aware of and acknowledge all employee guidelines set forth in the handbook and agree to abide by them. I understand that the Handbook includes information only on the Human Resources policies that I am most likely to need. Full details of all policies may be obtained from Human Resources. I also understand that either Delmarva Property Management or I may terminate my employment at any time for any reason with or without cause. This Employee Handbook does not create a contract of employment between Delmarva Property Management and me. I am an at-will employee. ___________________________ Employee Signature _______________________ Witness

___________________________ Regional Manager Signature

___________________________ Date

Employee Classifications

It is the intent of Delmarva Property Management to clarify the definitions of employment classifications so that our employees fully understand their employment status and benefit eligibility. Unless stated otherwise the benefits described in this manual apply to full-time employees only. Each employee is designated as either NONEXEMPT OR EXEMPT from federal and state wage provisions and hour laws. NONEXEMPT employees are entitled to overtime pay under the specific provisions of federal and state laws. EXEMPT employees are excluded from specific provisions of federal and state wage and hour laws. An employees NONEXEMPT OF EXEMPT classification can be changed only with written notification from Delmarva Property Managements management. In addition to the above categories, each employee will belong to one other employment category: REGULAR FULL-TIME employees are those who have successfully completed the trial period and who are regularly scheduled to work the Delmarva Property Managements full-time schedule. Generally, full-time status qualifies you to be eligible for Delmarva Property Managements benefits package, subject to the terms, limitations and conditions of each benefit program. PART-TIME employees are those who have successfully completed the trial period and who are regularly scheduled to work 30 hours or less per week. While they will receive all legally mandated benefits (such as Social Security and workers compensations insurance), they are ineligible for some of Delmarva Property Managements other benefits programs. If you are uncertain which category you fall into, please contact your regional manager or human resources.

Employee Privacy and Records

Delmarva Property Management maintains a personnel file on each of its employees. The personnel file includes such information as the employees job application, resume, and records of training, documentation of salary increases, performance appraisals and other employment records. Personnel files are the property of Delmarva Property Management and kept confidential. No employees personnel information will be shared with any outside affiliations. Paper and electronic files are stored in a locked and secured location. Employees who wish to review their own file should contact the Director of Human Resources. Employees may only review their own personnel file in Delmarva Property Managements office. They must review their personnel file in the presence of a manager and another individual appointed by Delmarva Property Management to maintain the files.

Computers, the Internet, Telephone and Email

Computers, computer files, the e-mail system, software, and the Internet provided to employees are the property of Delmarva Property Management. They are intended for business use only. The Internet should not be used to display or transmit sexually explicit images, personal messages or images. Please limit all personal telephone usage to emergency calls only. If necessary the calls must be brief and not disturbing to any business conduct. To ensure compliance with this policy, computers, phone, email and internet usage may be monitored. Disregarding these policies will result in disciplinary action.

Resignation
Resignations are a voluntary act initiated by the employee to terminate employment with Delmarva Property Management. Although advance notice is not required, Delmarva Property Management requests at least 2 weeks written resignation notice from all employees. All employment is at will which means that your employment can be terminated with or without cause, and with or without notice, at any time, at the option of Delmarva Property Management. Prior to an employees departure, and exit interview will be scheduled to discuss the reasons for resignation and the effect of resignation on benefits. Employees are responsible for items issued to them by Delmarva Property Management or in their possession or control, such as the following: keys, manuals, pagers, protective equipment and uniforms. Employees must return all DPM property immediately upon request or termination of employment. Where permitted by applicable law, DPM may withhold from the employees check or final paycheck the cost of any items that are not returned when required. DPM may also take all action deemed appropriate to recover or protect its property.

Compensation and Benefits Pay Policies

Delmarva Property Management employees are paid on a biweekly basis, every other Friday. If the payday falls on a holiday, pay will be deposited on the last day of work before the regularly scheduled payday. Direct deposit is mandatory and must be set-up within 30 days of your initial start date. Employees will be mailed an itemized statement of wages.
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Supervisors and employees are strongly encouraged to discuss performance and goals on an informal day-to-day basis. Delmarva Property Management will conduct compensation evaluations annually at the end of each calendar year. However, Delmarva Property Management is not obligated to increase an employees wages at the time of evaluation.

Work Schedules
Work schedules for employees throughout Delmarva Property Management vary. Supervisors will advise employees of their individual work schedules. Staffing needs and operational demands may necessitate variations in starting and ending times, as well as variations in the total hours that may be scheduled each work day and week.

Absences and Tardiness

If you are going to be absent or late for work, please contact your supervisor immediately. If you know in advance you will need to absent, you are required to provide your supervisor with a written time off request. Absence for 2 or more consecutive days without notifying your supervisor will be considered a voluntary resignation.

Benefits
Delmarva Property Management provides its eligible employees with a wide range of benefits. A number of the programs (such as Social Security, Workers Compensation, State Disabilities and Unemployment Insurance) cover all employees in the manner prescribed by law. Eligibility of benefits depends upon a variety of factors, including employee classification. Your supervisor or human resources can identify the programs you are eligible for.

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Information available to you in human resources on programs you may be eligible for. Human resources can provide you with details of what are required to be eligible, how much time is available to you as an employee and when some of the leave time is required to be used. The following benefit programs are available to eligible employees through Delmarva Property Management: Auto Mileage Bereavement Leave Dental Insurance Educational Financial Assistance Family Leave Health Insurance Holidays Jury Duty Leave Life Insurance Long-Term Disability Major Medical Insurance Personal Leave Sick Leave Benefits Vacation Benefits

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Leave and Time Off

Paid leave, vacation leave and paid holiday programs are available to all full-time employees. Vacation Benefits Vacation time off with pay is provided to employees for rest, relaxation and personal pursuits. Paid vacation time must be used prior to taking time off without pay. The amount of paid vacation time employees receive each year is based on their length of employment with Delmarva Property Management as shown in the following schedule: Upon initial eligibility the employee may be awarded 10 days vacation each year. After completing 5 years of eligible service, the following calendar year, the employee may be awarded 15 days vacation each year. After completing 10 years of eligible service, the following calendar year, the employee may be awarded 20 days vacation each year. Once employees enter an eligible employment classification, they begin to accrue vacation time according to the schedule. However, time accrued cannot be taken until the following calendar year. Any unused vacation time will not be carried over to the following calendar year. In the event that available vacation time is not used by the end of the benefit year, employees will forfeit the unused time. Upon termination of employment, employees will be paid for unused vacation time that has been awarded through the last day of work. However, if DPM, in its sole discretion, terminates employment for cause, forfeiture of unused vacation time may result.

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Holidays Delmarva Property Management will grant holiday time off to all employees on the holidays listed below: Personal Day (1 per year) This day may be used anytime during the calendar year instead of a vacation day or sick day. This day does not carry over into the following year. New Years Day Martin Luther King Day Presidents Day Good Friday Memorial Day Independence Day Labor Day Election Day (Presidential election only) Veterans Day Thanksgiving Day Day after Thanksgiving Christmas Eve Christmas Day Other Paid Leaves: Bereavement Leave Full time employees shall be granted up to 3 days of paid bereavement leave for the death of an immediate family member: a spouse, child, grandchild, grandparent, parent, spouses parent, siblings, or any relative living in the household with the employee.
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Jury Duty We encourage our employees to fulfill their civic responsibilities by serving jury duty when required. Full time employees who have completed their 90 day probationary period may request up to 2 weeks of paid jury duty leave over any 2 year period. The employee must notify their supervisor of the jury duty summons within 48 hours of receiving it. Sick Leave Delmarva Property Management provides paid sick leave to all full time employees for periods of temporary absence due to illness or injuries. Eligible employees will accrue sick leave benefits at a rate of 10 days per year. These days to carryover from year to year up to 90 days worth of sick leave benefits. If the employees benefits reach this maximum, further accrual of sick leave benefits will be suspended until the employee has reduced the balance below the limit. Employees who are unable to report to work due to illness should notify their supervisor at least an hour before the scheduled start of their work day if possible. Also, on each additional day of absence the employee must contact their supervisor. If an employee is absent for three or more consecutive days due to illness or injury, a physicians note must be provided stating you are under their care and when you will be expected to return to work. Military Leave A military leave of absence will be granted to employees who are absent from work because of service in the U.S. uniformed services. Advance notice of military service is required, unless military necessity prevents such notice. Full time employees will receive partial pay for two-week training assignments and shorter absences. The portion of any military leave of absence in excess of two weeks will be unpaid. However, employees may use any available paid time off for the absence.

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Long Term Disability Delmarva Property Management provides long-term disability (LTD) benefits to help full time employees cope with an illness or injury that result in a long-term absence from employment. LTD is designed to ensure a continuing income for employees who are disabled and unable to work. LTD benefits are offset with amounts received under Social Security or workers compensation for the same time period. For details and more information on long-term disability contact the Director of Human Resources. Unpaid Leave of Absence Occasionally, medical, personal, family or other reasons may arise that require an employee to be temporarily released from their job duties. Under certain circumstances a full time employee may be eligible for unpaid leave of absence. There are several reasons an employee may be eligible for unpaid leave of absence such as: Disability (including Pregnancy) Leave of Absence To request a disability leave a statement of ill health or disability from his/her doctor must be submitted. Personal Leave of Absence Family Leave of Absence An unpaid leave of absence could be granted for up to 90 days and extensions may be requested in 30 day increments.

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Employee Performance
Performance Appraisal Process Supervisors and employees are strongly encouraged to discuss job performance and goals on an informal, day-to-day basis. Formal performance evaluations will be conducted at the end of an employees initial period in any new position. This period, known as the introductory period, allows the supervisor and the employee to discuss job responsibilities, standards and performance requirements for the new position. Additional performance evaluations will be conducted annually on or about each employees anniversary date of hire. A review may also be conducted in the event of promotion or duty changes and responsibilities. The evaluations are done to provide both supervisors and employees the opportunity to discuss job tasks, identify and correct weaknesses, encourage and recognize strengths and discuss positive, purposeful approaches for meeting goals.

Workplace Behavior As an employee of Delmarva Property Management, during business hours or when you are representing DPM you are expected to present a clean, neat and tasteful appearance. This is particularly true if your job involves dealing with customer and visitors in person. To ensure orderly operations and provide the best possible work environment, DPM expects employees to follow rules of conduct that will protect the interest and safety of employees and the organization. A more detailed Employee Code of Conduct can be found and viewed by any employee in the Human Resources department. It is expected that you will act professionally with all customers and visitors, arrive on time for your scheduled work day and maintain a positive demeanor. It is not possible to list all the forms of behavior that are considered unacceptable in the workplace. The following examples of infractions of rules of conduct that may result in disciplinary action, up to and including termination of employment: Theft or inappropriate removal or possession of property
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 Boisterous or disruptive activity in the workplace Negligence or improper conduct leading to damage of employer-owned or customer-owned property Insubordination or other disrespectful conduct Violation of safety or health rules Violation of personnel policies Unsatisfactory performance or conduct Employment with Delmarva Property Management is at the mutual consent of DPM and the employee, and either party may terminate that relationship at any time, with or without cause, or with or without advance notice.

Attendance and Punctuality To maintain a safe and productive work environment, DPM expects employees to be reliable and to be punctual in reporting for scheduled work Absenteeism and tardiness place a burden on other employees and on Delmarva Property Management. In the rare instances when employees cannot avoid being late to work or are unable to work as scheduled, they should notify their supervisor as soon as possible in advance of the anticipated tardiness or absence. Failure to notify your supervisor will be considered no call, no show and may lead to disciplinary action, up to and including termination of employment. Poor attendance and excessive tardiness are disruptive. Either may lead to disciplinary action, up to and including termination of employment.

Personal Appearance Dress, grooming and personal cleanliness standards contribute to the moral of all employees and affect the business image DPM presents to customers and visitors. Please dress appropriately for your position and job duties, whether that is regional manager, property manager, maintenance technician etc.

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Without unduly restricting individual tastes, the following personal appearance guidelines should be followed: Shoes must provide safe, secure footing and offer protection against hazards Canvas or athletic type shoes are not appropriate professional attire Tank tops, tube or halter tops, miniskirts, shorts, stretch pants, leggings, jogging clothes, denim jeans may not be worn under any circumstances Mustaches and beards must be clean, well-trimmed and neat Hairstyles are expected to be in good taste Offensive body odor and poor personal hygiene is not professionally acceptable Jewelry should not be functionally restrictive, dangerous to job performance or excessive Visible excessive tattoos and similar body art must be covered during business hours

If your supervisor feels your personal appearance is inappropriate, you may be asked to leave the workplace until you are properly dressed or groomed. Under such circumstances, you will not be compensated for the time away from work. Consult your supervisor if you have questions as to what constitutes appropriate appearance. Where necessary, reasonable accommodation may be made to a person with a disability.

Smoking Delmarva Property Management has a no smoking policy at all of the facilities that it manages. This is in keeping with DPMs intent to provide a safe and healthful work environment for all employees, customers and visitors.

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Health and Safety To assist in providing a safe and healthful work environment for employees, customers and visitors, Delmarva Property Management established a workplace safety program. This program is a top priority for DPM. The Director of Human Resources has responsibility for implementing, administering, monitoring and evaluating the safety program. Its success depends on the alertness and personal commitment of all. Delmarva Property Management provides information to employees about workplace safety and health issues through regular internal communication channels such as supervisor-employee meetings, bulletin board postings, memos or other written communications. Some of the best safety improvement ideas come from employees. Those with ideas, concerns or suggestions for improved safety in the workplace are encouraged to raise them with their supervisor, with another supervisor or bring them to the attention of the Director of Human Resources. Reports and concerns about workplace safety issues may be made anonymously if the employee wishes. All reports can be made without fear of reprisal. Each employee is expected to obey safety rules and to exercise caution in all work activities. Employees must immediately report any unsafe condition to the appropriate supervisor. Employees who violate safety standards, who cause hazardous or dangerous situations or who fail to report, where appropriate, or remedy such situation, may be subject to disciplinary action, up to and including termination of employment. In the case of accidents that result in injury, regardless of how insignificant the injury may appear, employees should immediately notify the Director of Human Resources or the appropriate supervisor. Such reports are necessary to comply with laws and initiate insurance and workers compensation benefit procedures.

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Employee Conduct
Drugs and Alcohol It is Delmarva Property Managements desire to provide a drug-free healthful and safe atmosphere for all employees, clients and tenants. To promote this goal, employees are required to report to work in appropriate mental and physical condition to perform their jobs in a satisfactory manner. While on Delmarva Property Managements premises and while conducting business related activities off DPMs premises, no employee may use, possess, distribute, sell or be under the influence of alcohol or illegal drugs. The legal use of prescribed drugs is permitted on the job only if it does not impair an employees ability to perform essential functions of the job effectively and in a safe manner that does not endanger other individuals in the workplace. Violations of this policy may lead to disciplinary action, up to an including immediate termination of employment, and/or required participation in a substance abuse rehabilitation or treatment program. Such violations may also have legal consequences. Employees with drug or alcohol problems that have not resulted in and are not the immediate subject of disciplinary action my request approval to take unpaid time off to participate in a rehabilitation or treatment program. Leave may be granted if the employee agrees to abstain form use of the problem substance; abides by all DPM policies, rules and prohibitions relating to conduct in the workplace; and if granting the leave will not cause DPM any undue hardship. Employees with questions on this policy or issues related to drug or alcohol use in the workplace should raise their concerns with their supervisor or the Director of Human Resources without fear of reprisal.

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Trade Secrets During your employment with Delmarva Property Management, you may have access to personal and private information of our clients and tenants such as telephone numbers, financial information, social security numbers, addresses, etc. It is imperative that all employees maintain a strict level of confidentiality during and after ending employment with Delmarva Property Management. Employees are not permitted to disclose any confidential, personal, sensitive, proprietary information or trade secrets to anyone outside of or within the organization. If you do so you will face disciplinary action, up to and including termination of employment. Conflicts of Interest Employees have an obligation to conduct business within guidelines that prohibit actual or potential conflicts of interest. Any relationships or activities that may create an actual or potential conflict of interest are prohibited Employees are discouraged from forming such relationships. An actual or potential conflict of interest occurs when an employee is in a position to influence a decision that result in a personal gain for that employee or for a relative as a result of Delmarva Property Managements business dealings. For the purpose of this policy, a relative is any person who is related by blood or marriage or whose relationship with the employee is similar to that of persons who are related by blood or marriage. It is imperative that an employee disclose to an officer of DPM as soon as possible the existence of any actual or potential conflict of interest so that safeguards can be established to protect all parties. Delmarva Property Management expects all of its employees to devote your loyalty and energy to this company solely. Employees may hold outside jobs so long as it does not constitute as a conflict of interest with your employment with DPM. If you decide to pursue outside employment, please notify you supervisor immediately so that it does not interfere with your performance or ability to meet the requirements of DPM as they are modified from time to time. If an employee chooses to disregard this policy by taking proper measure to avoid an actual or potential conflict of interest, his/her actions may lead to disciplinary action and or termination of employment.

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Discrimination and Harassment Delmarva Property Management is committed to providing a work environment that is free from all forms of discrimination and conduct that can be considered harassing, coercive or disruptive including sexual harassment. Actions, words, jokes or comments based on an individuals sex, race, color, national origin, age religion, disability, sexual orientation or any other legally protected characteristic will not be tolerated. Sexual harassment may include unwanted sexual advances, offering employment benefits in exchange for sexual favors or any verbal conduct that includes making or using derogatory comments, epithets, slurs or jokes. Harassment could also be anything that prevents an individual from effectively performing the duties of their positions or creates an intimidating, hostile, or offensive work environment. If you experience or witness sexual harassment or other unlawful harassment in the workplace report it to your supervisor immediately. If a supervisor is unavailable or you believe it would be inappropriate to contact that person, you should immediately contact the Director of Human Resources or any other member of management. You can raise concerns and make reports without fear of reprisal of retaliation. All allegations of sexual harassment or other unlawful harassment will be quickly and discreetly investigated, taking all precautions to maintain confidentiality. Witnesses and alleged victims of harassment will be protected against unnecessary disclosure. When the investigation is completed, you will be informed of the outcome of the investigation. Any manager or supervisor who becomes aware of possible sexual harassment or other unlawful harassment must immediately advise the Director of Human Resources or any member of management so it can be investigated in a timely and confidential manner. Anyone engaging in sexual harassment or unlawful harassment will be subject to disciplinary action, up to and including termination of employment.

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Complaint Procedures Delmarva Property Management is committed to providing the best possible working conditions for its employees. Part of this commitment is encouraging an open and frank atmosphere in which any problem, complaint, suggestion or question received a timely response from DPM supervisors and management. DPM strives to ensure fair and honest treatment of all employees. Supervisor, managers and employees are expected to treat each other with mutual respect. Employees are encouraged to offer positive and constructive criticism. Whenever an employee has a problem or complaint dealing with any aspect of employment we encourage them to speak up and communicate directly with DPM staff. No employee will be penalized, formally or informally, for voicing a complaint with DPM in a reasonable, business-like manner, or for using the problem resolution procedure. If a situation occurs when employees believe that a condition of employment or a decision affecting them is unjust or inequitable. The following steps should be taken when reporting a problem or complaint. The employee may discontinue the procedure at any step. 1. Employee presents problem in writing to immediate supervisor directly after or within 5 days of the occurrence. Make sure that you clearly state your grievances and dates of the occurrence. If supervisor is unavailable or employee believes it would be inappropriate to contact that person, employee may present problem to Director of Human Resources or any other member of management. 2. Either a supervisor, member of management or Human Resources Director will meet with the employee within 2 business days to respond and discuss the grievance that was reported. The meeting and discussion will be documented. 3. If the employee is unsatisfied with outcome of the meeting and discussion then they may ask to have the problem presented to the President of the company for review. This must be done in writing as well. 4. President will meet with employee to discuss the original grievance and the unsatisfactory results. The President will review and consider the problem. The President will inform the employee of the decision made and forward a copy of the written response to the Director of Human Resources for the employees file.
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The President has full authority to make any adjustment deemed appropriate to resolve the problem. Not every problem can be resolved to everyones total satisfaction, but only through understanding and discussion of mutual problems can employees and management develop confidence in each other. This confidence is important to the operation of an efficient and harmonious work environment and helps ensure everyones job security.

We hope this handbook will be helpful in answering any questions that may arise regarding Delmarva Property Managements policies and procedures, either before or during your employment with our company. We hope that your experience here will be challenging, enjoyable and rewarding. Again, welcome to Delmarva Property Management!

Created by: Romona Custis

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