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HBL CPAs, P.C.Employee Handbook105 Hiring of RelativesEffective Date: 9/6/2016Revision Date:The employment of relatives in the same area of an organization may cause serious conflicts and problemswith favoritism and employee morale. In addition to claims of partiality in treatment at work, personalconflicts from outside the work environment can be carried over into day-to-day working relationships.For purposes of this policy, a relative is any person who is related by blood or marriage, or whoserelationship with the employee is similar to that of persons who are related by blood or marriage. Thispolicy applies to all employees without regard to the gender or sexual orientation of the individualsinvolved.Although HBL has no prohibition against employing relatives of current employees, we are committed tomonitoring situations in which such relationships exist in the same area. In case of actual or potentialproblems, HBL will take prompt action. This can include reassignment or, if necessary, termination ofemployment for one or both of the individuals involved.5

HBL CPAs, P.C.Employee Handbook107 Immigration Law ComplianceEffective Date: 9/6/2016Revision Date:HBL is committed to employing only United States citizens and undocumented immigrants who areauthorized to work in the United States. HBL does not unlawfully discriminate on the basis of citizenshipor national origin.In compliance with the Immigration Reform and Control Act of 1986, each new employee, as a conditionof employment, must complete the Employment Eligibility Verification Form I-9 and presentdocumentation establishing identity and employment eligibility within three working days of their firstday of employment at HBL. Former employees who are rehired must also complete the form if they havenot completed an I-9 with HBL within the past three years, or if their previous I-9 is no longer retained orvalid.Sufficient documentation typically includes a valid driver's license, Social Security card and/or GreenCard, if the Employee is from a foreign country.HBL, as required by The Legal Arizona Workers Act, is required to use the "E-Verify" system to verifythe employment authorization of all new employees hired in Arizona after December 31, 2007.Employees with questions or seeking more information on immigration law issues are encouraged tocontact the Firm Administrator. Employees may raise questions or complaints about immigration lawcompliance without fear of reprisal.6

HBL CPAs, P.C.Employee Handbook108 Confidentiality and Conflicts of InterestEffective Date: 9/6/2016Revision Date:This policy establishes only the framework within which HBL wishes the business to operate. Thepurpose of these guidelines is to provide general direction so that employees can seek further clarificationon issues related to the subject of acceptable standards of operation. Contact the CEO for moreinformation or questions about confidentiality and conflicts of interest.ConfidentialityThe rule of thumb to remember is that all information gathered by, retained or generated by the Companyis confidential. There shall be no disclosure of any confidential information or trade secrets to anyoneoutside the Company without the appropriate authorization. Confidential information may include internalreports, policies, procedures and other internal business-related communications. Trade secrets mayinclude information regarding the development of systems, processes, products, design, instrument,formulas and technology. In addition, always respect financial disclosure laws and third party intellectualproperty.It is an employee’s duty and responsibility to safeguard all confidential information. This includes thedissemination of information by any available means, including but not limited to telephone, fax andemail.When any inquiry is made regarding an employee or any former employee, the inquiry must be forwardedto their department manager without comment from the employee. When any inquiry is made regardingany client, the inquiry must be forwarded to their department manager.Confidential information shall be disclosed and/or discussed only on a “need to know” basis.Conversation of a confidential nature must never be held within earshot of the public or clients.Additional detailed guidance and examples are available in Section 1.700, Confidential Information, ofthe AICPA Code of Professional Conduct.The protection of confidential client financial information is vital to the interests and the success of HBL.Employees who improperly use or disclose confidential client business information will be subject todisciplinary action, up to and including termination of employment and legal action, even if they do notactually benefit from the disclosed information.Conflicts of InterestThe Company is judged by the collective and individual performance of its officers and employees. TheCompany has a particular interest in preserving its reputation and the reputation of its employees for theutmost honesty and integrity. Thus, the Company holds itself and its employees to the highest standards oflawful and ethical conduct.7

HBL CPAs, P.C.Employee HandbookEmployees have an obligation to conduct business within guidelines that prohibit actual or potentialconflicts of interest. Therefore, employees must be very careful that their relationship with clients,vendors, or others do not subject oneself or the Company to question or undue criticism. Employees mustrefrain from engaging in any activity that could be in conflict with their status as a Company employee.This includes the use of an employee’s position with the Company for personal profit, advantage orentering into transactions or relationships where it may appear that an employee has a conflict of interest,are improperly benefiting from an affiliation with the Company, or are violating laws governing fiduciaryrelationships. Good judgment and common sense are to supplement these provisions to avoid even theappearance of impropriety. To the extent there is a conflict or ambiguity between permissive conduct andthat which is not permitted, the latter shall have precedence. Remember, the appearance of a conflict is thesame as a conflict to many people.If an employee has questions regarding the propriety of a transaction or activity, they should seekguidance from their department manager and the CEO. Detailed guidance and examples are available inSection 1.110, Conflicts of Interest, of the AICPA Code of Professional Conduct. Where deemednecessary, employees should seek written approval.This policy is intended to alert employees to the need for discretion at all times and is not intended toinhibit normal business communications. In addition, nothing in this policy is intended to infringe uponemployee rights under Section Seven (7) of the National Labor Relations Act (NLRA).You will be asked about any potential conflicts of interest upon hire. Thereafter, new clients are disclosedto you by way of email from the Firm Administrator. It is your responsibility to contact the CEOimmediately if a conflict of interest may exist.8

HBL CPAs, P.C.Employee Handbook110 Outside EmploymentEffective Date: 9/6/2016Revision Date:Employees may hold outside jobs as long as they meet the performance standards of their job with HBL.All employees will be judged by the same performance standards and will be subject to HBL's schedulingdemands, regardless of any existing outside work requirements.If HBL determines that an employee's outside work interferes with performance or the ability to meet therequirements of HBL as they are modified from time to time, the employee may be asked to terminate theoutside employment if he or she wishes to remain with HBL.Outside employment that constitutes a conflict of interest is prohibited. Employees may not receive anyincome or material gain from individuals outside HBL for materials produced or services rendered whileperforming their jobs.Unless specifically approved, employees will not engage in outside employment that:1. Requires personal attention or work during scheduled work hours at HBL CPAs, P.C.;2. Involves, in any way, use of information from the Company’s records or concerning theCompany’s clients;3. Competes with the Company directly or indirectly;4. Involves the use of the Company’s equipment, supplies or facilities;5. Could result in criticism or have an adverse effect on the company;6. Could create any other circumstances which, in the Company Management's opinion, creates aconflict or does not serve the interest of the Company.Employees must obtain the written approval of the COO prior to accepting secondary employment.9

HBL CPAs, P.C.Employee Handbook114 Disability AccommodationEffective Date: 9/6/2016Revision Date:The Company is committed to complying with all applicable provisions of the Americans withDisabilities Act (ADA). It is the Company’s policy not to discriminate against any qualified employee orapplicant with regard to any terms or conditions of employment because of such individual's disability orperceived disability so long as the employee can perform the essential functions of the job, with orwithout a reasonable accommodation. Consistent with this policy of nondiscrimination, the Company willprovide reasonable accommodations to a qualified individual with a disability, as defined by the ADA,who has made the Company aware of his/her disability, provided that such accommodation does notconstitute an undue hardship on the Company. Limitations lasting less than six months are not alwaysconsidered disabilities. Diseases in remission, that if and when active could cause an impairment of amajor life function will be considered disabilities and subject to the reasonable accommodation process.Employees with a disability who believe they need a reasonable accommodation to perform the essentialfunctions of their job should contact their department manager. Their department manager must thenpromptly report this information to the CEO or COO. Employees also have the option to file a requestdirectly with the CEO or COO. Promptly after receipt of an accommodation request, the CEO or COOand the employee’s department manager will meet with the employee to discuss and identify the preciselimitations resulting from the disability and the potential accommodation that the Company might make tohelp overcome those limitations. This will be an interactive process and will take into consideration anymitigating measures the employee is using (i.e. using insulin, prosthetics, etc).The Company will determine the feasibility of the requested accommodation considering various factors,including, but not limited to the nature and cost of the accommodation, the availability of tax credits anddeductions, outside funding, the Company’s overall financial resources and organization, and theaccommodation's impact on the operation of the Company, including its impact on the ability of otheremployees to perform their duties and on the Company’s ability to conduct business. The ADA does notrequire the Company to make the best possible accommodation, to reallocate essential job functions, or toprovide personal items (i.e., eyeglasses, hearing aids, wheelchairs or to create a light duty job, etc)The Company will inform the employee of its decision on the accommodation request or on how to makethe accommodation. If the accommodation request is denied, employees will be advised of their right toappeal the decision by submitting a written statement explaining the reasons for the request to the CEO orCOO. If the request on appeal is denied, that decision is final.10

HBL CPAs, P.C.Employee Handbook201 Employment CategoriesEffective Date: 9/6/2016Revision Date:It is the intent of HBL to clarify the definitions of employment classifications so that employeesunderstand their employment status and benefit eligibility. These classifications do not guaranteeemployment for any specified period of time. Accordingly, the right to terminate the employmentrelationship at will at any time is retained by both the employee and HBL.Each employee is designated as either NONEXEMPT or EXEMPT from federal and state wage and hourovertime laws. NONEXEMPT employees are entitled to overtime pay under the specific provisions offederal and state laws. EXEMPT employees are excluded from specific provisions of federal and statewage and hour laws. An employee's EXEMPT or NONEXEMPT classification may be changed onlyupon written notification by HBL management.In addition to the above categories, each employee will belong to one other employment category:REGULAR FULL-TIME employees are those who are not in a temporary or introductory status and whoare regularly scheduled to work HBL's full-time schedule. Generally, they are eligible for HBL's benefitpackage, subject to the terms, conditions, and limitations of each benefit program.REGULAR PART-TIME employees are those who are not assigned to a temporary or introductory statusand who are regularly scheduled to work less than the full-time work schedule, but at least 30 hours perweek. Regular part-time employees are eligible for some benefits sponsored by HBL, subject to theterms, conditions, and limitations of each benefit program.PART-TIME employees are those who are not assigned to a temporary or introductory status and who areregularly scheduled to work less than 30 hours per week. While they do receive all legally mandatedbenefits (such as Social Security and workers' compensation insurance), they are ineligible for all ofHBL's other benefit programs.INTRODUCTORY employees are those whose performance is being evaluated to determine whetherfurther employment in a specific position or with HBL is appropriate. Employees who satisfactorilycomplete the 90-day introductory period will be notified of their new employment classification.TEMPORARY employees are those who are hired as interim replacements, to temporarily supplement thework force, or to assist in the completion of a specific project. Employment assignments in this categoryare of a limited duration, typically less than three months. Employment beyond any initially stated perioddoes not in any way imply a change in employment status. Temporary employees retain that status unlessand until notified of a change. While temporary employees receive all legally mandated benefits (such asworkers' compensation insurance and Social Security), they are ineligible for all of HBL's other benefitprograms.11

HBL CPAs, P.C.Employee Handbook202 Access to Personnel FilesEffective Date: 9/6/2016Revision Date:HBL maintains a personnel file on each employee. The personnel file includes such information as theemployee's job application, resume, records of training, documentation of performance appraisals andsalary increases, and other employment records. Separate files will be kept for your general personnelmaterial, medical records and I-9 forms.Personnel files are the property of HBL, and access to the information they contain is restricted.Generally, only management personnel of HBL who have a legitimate reason to review information in afile are allowed to do so.Reviewing your personnel fileEmployees who wish to review their own file should contact the Firm Administrator. With reasonableadvance notice, employees may review their own personnel file by submitting a request to the FirmAdministrator. The Firm Administrator and/or Chief Operating Officer must be present during thereview.Releasing personnel information to othersPersonnel information may be released as follows:1.If credit checks are submitted in writing with the authorizing signature of the Employee, the FirmAdministrator will provide the Employee’s name, address, title, salary and hire date to therequesting agency.2. Employment verifications from outside sources for which employment dates, title and salaryverification are requested may be released by the Firm Administrator if requested by theEmployee in writing.3. Other circumstances in which information on Employees is provided to other parties to be incompliance with legal process, judicial orders and other law enforcement documents as authorizedby the CEO.See policy number 203 regarding employment reference checks.12

HBL CPAs, P.C.Employee Handbook203 Employment Reference ChecksEffective Date: 9/6/2016Revision Date:Prospective EmployeesTo ensure that individuals who join HBL are well qualified and have a strong potential to be productiveand successful, HBL checks the employment references of applicants as determined necessary.Former EmployeesIt is the Company's policy to provide limited information on former employees, typically including datesof employment, job title and salary verification without specific written consent from the employee. TheFirm Administrator will respond to all reference check inquiries from other employers.The Company does not typically provide letters of recommendation on current or former employees.These are provided on an as-needed basis and only with the approval of the CEO or COO.13

HBL CPAs, P.C.Employee Handbook204 Personnel Data ChangesEffective Date: 9/6/2016Revision Date:It is the responsibility of each employee to promptly notify HBL of any changes in personnel data.Personal mailing addresses, telephone numbers, number and names of dependents, individuals to becontacted in the event of an emergency, educational accomplishments, additional licensures and othersuch status reports should be accurate and current at all times. If any personnel data has changed, notifythe Firm Administrator.Employees are individually responsible to notify firm benefit providers of any change in pertinentinformation.Licensed professionals are individually responsible to notify licensing agencies of the changes they arerequired to report in order to be in compliance.14

HBL CPAs, P.C.Employee Handbook205 Introductory PeriodEffective Date: 9/6/2016Revision Date:The introductory period is intended to give new employees the opportunity to demonstrate their ability toachieve a satisfactory level of performance and to determine whether the new position meets theirexpectations. HBL uses this period to evaluate empl

319 Long-Term Disability 9/6/2016 36 320 401(k) Savings Plan 9/6/2016 37 321 CPE Courses and Training 9/6/2016 38 327 Section 125 Cafeteria Plan 9/6/2016 39 . All employees of HBL will maintain compliance with the AICPA Code of Professional Conduct. In general, the use of good judgment, based on high ethical principles, will guide you with .