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MARATHON MANAGEMENT INC. AND AFFILIATES (“Employer”) Conditions of Employment, Employee Manual & Policies Between

________________ ______________ (“Community”)

And ________________ ______________ (“Employee”) ____________ __________________ (“Position”) _______________ _______________ (“Effective”)

Employee’s Initials__________ © Copyright 2011 Marathon Management, Inc.

Revised 02/02/16

No portion of this document may be reproduced without written permission of Marathon Management, Inc

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MARATHON MANAGEMENT INC. AND AFFILIATES Conditions of Employment, Employee Manual & Policies TABLE OF CONTENTS Addendums Check List .................................................................................................................3 Introduction ...................................................................................................................................4 Definition Full-Time and Part-Time .............................................................................................4 Employment Fees..........................................................................................................................4 Property .........................................................................................................................................4 Compensation & Employee Reviews ...........................................................................................5 Notification ...................................................................................................................................6 Office Hours..................................................................................................................................6 Paid Holidays ................................................................................................................................6 Vacation Policy .............................................................................................................................6 Personal Time Off .........................................................................................................................7 Family and Medical Leave Policy ................................................................................................8 Unpaid Personal Leave .................................................................................................................8 Military Leave of Absence............................................................................................................8 Court Service and Jury Duty .........................................................................................................9 Incident / Accident and Return to Work .......................................................................................9 Health Insurance .........................................................................................................................10 Life Insurance .............................................................................................................................10 Dental Insurance .........................................................................................................................10 Disability Insurance ....................................................................................................................10 Retirement Plan (401k) ...............................................................................................................11 Cafeteria Plan ..............................................................................................................................11 Education Reimbursement ..........................................................................................................11 Rental Discount ………………………………………………………………………………..11 Termination and Disciplinary Action .........................................................................................12 Dress Code and Demeanor..........................................................................................................12 Smoke-free Office Environment .................................................................................................13 Discrimination.............................................................................................................................13 Confidentiality ............................................................................................................................14 Sexual Harassment ......................................................................................................................14 Miscellaneous Terms and Conditions .........................................................................................14 General Employment Release .....................................................................................................15 Acceptance of Employee Manual: Personnel Policies and Conditions of Employment ............15 Dress Code Guidelines (Exhibit A) ............................................................................................16 Dress Code Guidelines for On-Site Maintenance and Construction Employees (Exhibit B).....18 Confidentiality Agreement (Exhibit C) ......................................................................................19 Sexual Harassment Policy Statement (Exhibit D) ......................................................................21 Alcohol and Drug Policy (Exhibit E)..........................................................................................22 Washington Real Estate Policy and Procedures (Exhibit F) .......................................................24 Employee’s Initials__________ © Copyright 2011 Marathon Management, Inc.

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E12 Page 3 of 24 MARATHON MANAGEMENT, INC. AND AFFILIATES Conditions of Employment, Employee Manual & Policies ADDENDUM(S) CHECK LIST Employee shall initial on right-hand side line if applicable and received.

Equipment Responsibility Agreement (Construction Only)

______

Petty Cash Custodial Agreement

______

On-Site Responsibility Agreement W/ Clubhouse Attendant Job Responsibilities Acknowledgment

______ ______

W/ Groundskeeper Job Responsibilities Acknowledgment

______

W/ Resident Services Manager Job Responsibilities Acknowledgment & W/ Property Equipment List Inventory (template)

______ ______

W/ Leasing Representative Job Responsibilities Acknowledgment

______

W/ Maintenance Supervisor/Technician Job Responsibilities Acknowledgment ______ & W/ Maintenance Experience Check List ______

Employee’s Initials__________ © Copyright 2011 Marathon Management, Inc.

Revised 02/02/16

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E12 Page 4 of 24 MARATHON MANAGEMENT, INC. AND AFFILIATES Conditions of Employment, Employee Manual & Policies

INTRODUCTION This document, including exhibits and any applicable addendums, together with a completed and fully approved Notice of Personal Action (NOPA) outline and explain the Personnel Policies and the Conditions of Employment employees are subject to when working for Marathon Management, Inc and Affiliates (the “Employer”). These policies and conditions shall remain and continue in effect until modified or terminated via written notice by either undersign to the other. All addendums and forms referenced in this document are available at Marathon Forms / Documents web site and/or from the Human Resources Department. Employees are expected to devote their best efforts to further the interests of Employer and endeavor in every proper way to make the efforts of Employer successful.

DEFINITION FULL-TIME & PART-TIME For the purposes of employment the Employer defines a full-time employee as one who is nonseasonal and has worked an average of thirty-two (32) or more hours per week for the last fiftytwo (52) weeks. A part-time employee is defined as one who has worked an average of less than thirty-two (32) or more hours per week for the last fifty-two (52) weeks.

EMPLOYMENT FEES Employment fees are not paid by Employer. In certain unique cases where an employee is clearly performing at a level far superior than what would normally be expected, partial or full reimbursement may be considered upon the sole discretion of Employer after one (1) full year of employment.

PROPERTY All keys, entry cards, petty cash, inventories, training and operating manuals, forms, equipment, programs and any other materials furnished by or developed by Employer remain the property of Employer and must be returned to Employer, without reproduction, immediately upon termination. Employer reserves the right to inspect an Employee’s desk, work area, email, Internet messages and hard drive/disk storage or any other electronic media under the Employee’s control. Employee’s Initials__________ © Copyright 2011 Marathon Management, Inc.

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E12 Page 5 of 24 COMPENSATION & EMPLOYEE REVIEWS Employee’s compensation shall be documented by the completion of an approved NOPA form and approved by Employee’s supervisor and Vice-President of their department. Initially and upon each modification, Employee will be provided copies of their approved NOPAs. Employee shall be classified as either salaried or hourly employee. Salaried employees, who supervise three (3) or more employees shall be considered “exempt” and shall not receive overtime. All other employees shall be considered “non-exempt” and shall be paid overtime when authorized to do so in writing beforehand by their supervisor. Foremen, supervisors, managers, and vice presidents, as well as all other “exempt” employees are considered strictly salaried and shall not be paid overtime under any conditions. Exempt employees shall be expected to expend all necessary time and energy to complete their job assignment(s). These individuals are responsible for the performance of their areas of responsibility and are expected to do whatever necessary to ensure the smooth and profitable functioning of their department. On-site employees who directly perform apartment administration, leasing or maintenance may be eligible to earn additional compensation in the form of bonuses and commissions. Pay periods for both salary and hourly employees commence on a Monday and terminate on a Sunday and will include at least two (2) weeks, but may include three (3) weeks depending on where a payday falls in relation to the pay period. Employees will be paid, for pay-periods worked, on the 1st and 15th of each month. For budgeting purposes employees need to be aware that pay days fall approximately two (2) weeks after the end of each pay period. The payroll schedule (annual calendar) in effect is available at the Marathon Forms / Documents web site. Timesheets for “non-exempt” employees are prepared by the Human Resources Department and presented to “non-exempt” employees for signature based upon the hours worked for each pay period. Employees and respective supervisors must sign and return these time sheets promptly. Employee’s failure to return signed and approved time sheets promptly may result in termination. Salaries or salary pay rates may only be changed upon the completion of an “Employee Performance Review” form and the completion of an approved NOPA. Employee’s respective supervisor(s) shall review Employee’s performance ninety (90) days after employment, the “probationary period,” and thereafter each December after one full calendar year of employment. The “Employee Performance Review” form shall be used for the purpose of documenting this review. Non-scheduled reviews may be initiated by employee’s supervisor whenever necessary to document exceptional or deficient performance. “Employee Performance Review” forms are to be used to initiate and recommend increases in compensation or to document disciplinary action. Salary information is strictly confidential. Any employee who relates or discusses his or her own salary or that of any other employee with any other employee(s) or other individual(s), directly or indirectly, will be in violation of Employer’s Personnel Policies and Conditions of Employment. Such violation of salary confidentiality is grounds for immediate termination. Employee’s Initials__________ © Copyright 2011 Marathon Management, Inc.

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E12 Page 6 of 24 NOTIFICATION Employee shall provide Employer with their home and cell telephone number(s), email and residential address. Employee shall notify Employer in writing of any change in telephone number(s) or address within seventy-two (72) hours by completing and submitting a NOPA. Employee must notify Employer in writing within (48) hours regarding the particulars of any criminal violation for which they have been cited. Failure by Employee to notify their Supervisor may result in termination. OFFICE HOURS Employees are expected to be at their jobs eight (8) hours per day, Monday through Friday, except for Employer Paid Holidays (see list below). Additionally, employees shall take a onehour lunch break sometime during their regular workday, at a time convenient to the Employer’s workload and at the employee’s Supervisor’s discretion. No overtime shall be paid for employee’s failure to take a lunch hour. Overtime shall be paid to hourly employees only when hours to be worked have been approved in writing in advance by the President. Daily work hours shall commence at either 7:30 a.m. or 8:00 a.m. and shall terminate at 4:30 p.m. or 5:00 p.m., respectively, unless otherwise specified in Employee’s NOPA and/or their “On-site Responsibility Agreement” (Applicable Addendum attached – if relevant). The commencement and termination times shall be determined and shall apply for all employees of the department, without exception. Once the commencement hour has been selected, it shall not be changed more than once per year. PAID HOLIDAYS All full-time employees shall be entitled to take the following holidays off with pay: New Year’s Day Memorial Day* Independence Day* Labor Day* Thanksgiving Day Christmas Day *Those on-site personnel designated as leasing and senior leasing representatives may be required to work on these days if physical occupancy is less than ninety-three percent (93%) and shall not be entitled to any additional pay or overtime pay. “Exempt” staff, department managers, directors and vice-presidents who find it necessary to work on these days shall not be entitled to any additional pay or overtime pay.

Employee’s Initials__________ © Copyright 2011 Marathon Management, Inc.

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E12 Page 7 of 24 VACATION POLICY All full-time salaried and full-time hourly employees shall be entitled to vacation benefits. Employees who have not worked one (1) full year will not be entitled to nor paid vacation benefits. Part-time employees or seasonal employees (such as construction employees) shall not be entitled to any vacation benefits. Vacation benefits are awarded in the form of “Vacation Hour Credits” (VHC). The current number of VHCs available are tracked by Employer’s payroll service and printed on employees’ pay-stubs. Employees who qualify shall be awarded VHC as follows: Vacation Hour Credits When Awarded 40

After one (1) full year of employment

80

Each year after two (2) full years of consecutive employment

120

Each year after five (5) full years of consecutive employment

160

Each year after fifteen (15) full years of consecutive employment

All “Vacation Hour Credits” must be taken in the year awarded as set forth above. “Vacation Hour Credits” are not awarded based on any system of accrual nor can they be accrued. Employees having been awarded VHC cannot carry over unused VHC from one year to another. Likewise, employees shall not be paid for unused VHC. However, employees who terminate, for any reason, will be paid for their current unused VHC appearing on their latest pay-stub. No more than five (5) days vacation, together with normally scheduled days off, shall be taken at any one time. Employee shall schedule all vacation time at least thirty (30) days in advance by submitting a written request to his/her supervisor on a NOPA form. Employer shall accommodate the request of Employee in scheduling vacation time insofar as it does not place an undue burden on other employee(s). Employer has the sole right to approve or disapprove all requests to take vacation.

PERSONAL TIME OFF (PTO) Full-time employees shall be given forty (40) PTO hours on January 1 of each year. Employees who are not employed on January 1st will not receive any PTO hours for that calendar year. Any Employee who has 24 or more of unused PTO hours as of December 31st of each year, as reflected on their final year-end paycheck stub as determined solely by Marathon’s Controller, will receive a bonus payment of 40 additional hours based on their current wage rate then in Employee’s Initials__________ © Copyright 2011 Marathon Management, Inc.

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E12 Page 8 of 24 effect. This bonus will be included in the Employee’s following year’s paycheck on January 15th. Any unused PTO days shall not be carried forward from one year to the next except for the PTO bonus payment described above. No employee shall be paid for unused PTO days. FAMILY & MEDICAL LEAVE POLICY In compliance with the Oregon and Federal Family and Medical Leave Act(s), Employer allows employees who have been employed for at least 180 days, to be away from work, without pay, for an extended period of time to recover or receive treatment for serious health conditions; care for a spouse, parent, child or domestic partner if a serious health condition exists and; in certain cases to care for an infant, child, adopted or foster child if serious health conditions do not exist. When planning to take family or medical leave, employee must submit a written request for a “Leave of Absence”` and consult with their supervisor to schedule leave so not to unduly disrupt the company’s operations. Employer will use “Employer Response to Employee Request for Family or Medical Leave” (US DOL Form WH 381 to respond to employee’s written request. When requested to do so, employee must provide, within fifteen (15) days a “Certification of Health Care Provider” (US DOL Form WH 380) for any leave five (5) days or longer. Failure to do so may result in denial of leave or disciplinary action up to and including termination. Employees who are recovering or receiving treatment for an illness must first use any accrued sick days and then any vacation days. Such sick or vacation days taken shall be in lieu of not in addition to the total family and medical days allowed and taken. Employees returning from Family or Medical leave will be reinstated to the same position with the same pay, benefits and other terms and conditions of employment. The returning employee however, shall have no greater right of reinstatement or to other benefits and conditions of employment than if the employee had been continuously at work. For example, if employee would have been laid off or terminated while actively at work, then employee may be laid-off off or terminated during their absence. Employees shall not accrue vacation or sick days during any part of the time employee is on Family or Medical Leave. Employees, while on Family or Medical Leave, who work for another company will be considered to have voluntarily terminated their employment.

UNPAID PERSONAL LEAVE Unpaid personal leave that does not qualify as Family or Medical absence may be granted at the sole discretion of the company. The granting of unpaid personal leave will be evaluated based on work record, staffing needs and reason for leave request. The circumstances shall determine the length of the leave but shall not exceed three (3) days. Returning employees are not guaranteed the same job, pay rate or benefits. Employee’s Initials__________ © Copyright 2011 Marathon Management, Inc.

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E12 Page 9 of 24 MILITARY LEAVE OF ABSENCE Employees who are required to attend annual military reserve training or other short-term active military duty may take the time as either regular vacation or unpaid leave. Reservists are entitled to return to their jobs as provided under Federal and State laws.

COURT SERVICE AND JURY DUTY Employees may perform local, state or federal court service or jury duty with pay, provided that employee’s supervisor is provided an authentic summons or notice to appear. In the event that employee is not selected for jury duty, employee must immediately return to work upon dismissal. Employee’s supervisor shall promptly complete a NOPA upon employee’s return from court service or jury duty, indicating the date(s) and time(s) of service and attach a confirming statement from the court. Employer will pay employees their regular rate of pay during court service, however, no additional pay above employee’s regular pay, including overtime, shall be paid. All court service compensation shall be assigned and paid to Employer.

INCIDENT/ACCIDENT AND RETURN TO WORK All work-related accidents, injuries and near misses must be reported to employee’s supervisor within thirty (30) minutes of occurrence on an “Incident / Accident Report” and also faxed to Employer’s Human Resources Department (fax# 503.582.8383). Injuries requiring professional medical treatment must be reported to the Human Resources Department on SAIF Form 801 “Report of Job Injury or Illness”. Employee shall, upon medical treatment, inform the attending physician that Employer has a temporary transitional (light-duty assignments) return-to-work policy by providing the physician the Workers Compensation Division (State) Form 3245 “Release to Return to Work” for completion and signature upon employee’s initial treatment. The completed “Release to Return to Work” form must be returned by physician to Human Resources Department within twentyfour (24) hours of initial medical treatment. Also, within twenty-four hours, or less, of initial medical treatment employee must either report to work (if released) or contact supervisor to discuss Return to Work date and time. Employer requires employees to return to work following a job related injury as early as possible to reduce insurance costs. In order to accommodate the easiest return to work, Employer may assign physically/mentally-impaired employees to temporary transitional work assignments that modify the physical, mental and skill demands normally required of employee. These temporary transitional positions shall be developed in coordination with employee’s attending physician and will take into consideration employee’s physical abilities and Employer’s employment needs. Employer shall be solely responsible for determining availability and appropriateness of temporary transitional assignments and the location, shift hours and duration returning employee Employee’s Initials__________ © Copyright 2011 Marathon Management, Inc.

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E12 Page 10 of 24 shall work. Employee’s assignment to or termination from any temporary transitional assignment shall be communicated to the insurance carrier and attending physician by the Human Resources Department. Employees who are unable to report for any kind of work must call in to their supervisor at least twice a week to report their medical status. Employees must likewise report any changes occurring in their medical condition to their supervisor within twenty-four (24) hours. While off work, it is the responsibility of employee to provide their supervisor with all telephone numbers (listed, unlisted and cellular) and an address where employee may be reached.

HEALTH INSURANCE Full-time, non-seasonal employees are eligible for Employer paid health insurance beginning on the first of the month after sixty (60) days of continuous employment. In addition, Employer will pay fifty-percent (50%) of the cost of monthly health insurance premiums for any spouse and family members of any eligible full-time employee who elects to be covered under Employer health insurance plan. Part-time, seasonal, and non-qualifying employees are not eligible for Employer paid health however they may obtain health insurance coverage for themselves and for their dependents by paying 100% of monthly premiums.

LIFE INSURANCE All full-time employees are eligible, beginning on the first of the month after ninety (90) days of continuous employment, for Employer paid life insurance equal to 2.5 times employee’s base salary, up to a maximum amount of $50,000 coverage. The limits, amounts and insurance company shall be determined at the sole discretion of Employer. Employer paid life insurance is not available for spouses, family members, part-time, seasonal and non-qualifying employees.

DENTAL INSURANCE Dental insurance is available, at employee’s cost, for full-time, part-time, and seasonal employees and their dependents beginning the first of the month after ninety (90) days of continuous employment. Check with the Human Resources Department for the details of benefits available and premium quotes.

DISABILITY INSURANCE After ninety (90) days of continuous, employment, full-time employees are eligible for Employer paid long-term disability insurance. The amount of insurance is sixty percent (60%) of employee’s monthly salary, with a maximum benefit of $2,000 per month. Disability benefits commence ninety (90) days after employee is disabled. Details regarding the maximum benefit Employee’s Initials__________ © Copyright 2011 Marathon Management, Inc.

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E12 Page 11 of 24 period may be obtained directly from the Human Resources Department. Disability Insurance is not available for part-time, seasonal and non-qualifying employees.

RETIREMENT PLAN (401k) Employer has established a federally qualified Retirement Plan that allows employees to save for retirement on a pretax basis. With this Plan, employees can determine the amount, and to a large extent, how their funds are invested. Employees must be at least twenty-one (21) years of age and have been employed by Employer for one (1) full year (based on their date of hire), before becoming eligible for enrollment. Enrollment is restricted to 1st of January and July each year.

CAFETERIA PLAN Employer has established what is commonly known as a “Cafeteria Plan (premium only),” which is an IRS code compliant arrangement whereby employees can avoid paying federal and state income taxes on employee wages used to pay certain expenditures such as medical and dental insurance premiums. Over time, federal and state tax savings through a Cafeteria Plan can be substantial. The Human Resources Department can provide details as to how this program works.

EDUCATION REIMBURSEMENT Employees are encouraged to attend and complete courses of instruction which directly further their knowledge relating to their job responsibilities and which improve their skills and job performance. Employees wishing to be reimbursed for tuition cost must first obtain written approval from their immediate Supervisor and the Vice President of their department for the class they intend to complete. If the class has been approved and successfully completed, Employee may request reimbursement for the cost of the course by completing an Employee Expense (form #E5) and attaching proof of payment. No payment advances will be made to an Employee for educational purposes.

RENTAL DISCOUNT When residency at the Property is not a requirement of the Employer, and the Employee is full time, and voluntarily requests to live on-site, the Employer may, after ninety (90) days of employment and a satisfactory performance review, issue a monthly rental credit in the amount up to twenty percent (20%) of the effective rent and document this credit on a Change of Residency Status form (CORS). This credit only applies to apartment rent. Any additional charges incurred (garages, carports, cable TV, golf etc) shall not be discounted. All utilities are the sole responsibility of the Employee. In exchange for this rental credit, the Employee acknowledges to properly document and to report to their supervisor, any tenant and non-tenant issues they witness on the property. The Employee’s rental credit may be increased or decreased Employee’s Initials__________ © Copyright 2011 Marathon Management, Inc.

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E12 Page 12 of 24 by the Employer based upon results of the Employee’s Performance Review but in no case shall it exceed 20% of the occupied GPR. The granting of an employee rental credit does not preclude an employee from a rent increase. Should Employee fail to pay their rent in a timely fashion (i.e. on the 1st day of the month when rent is due) or fail to pay rent and any ancillary charges in full, this rental credit shall be discontinued. In the event of the termination of employment (whether by Employer or Employee) the Employee’s monthly rental credit will be terminated and apartment rent shall be prorated as of the day of termination.

TERMINATION AND DISCIPLINARY ACTION Employer may terminate Employment Relationship With or Without Cause.  With Cause Employer may terminate Employee in the event that Employee willfully and continuously fails or refuses to comply with the policies, standards and regulations of Employer, or in the event that Employee shall fail to perform in accordance with Employer’s Personnel Policies and Conditions of Employment. The issuance of two (2) unfavorable Job Performance Reviews will result in termination. Immediate termination can occur for, during work-time and on-call time, for being under the influence of alcohol or drugs, use or possession of alcohol or drugs, assault (including verbal), unauthorized absences, insubordination, disloyalty, and illegal actions including, but not limited to theft, dishonesty (including verbal dishonesty).

 Without Cause Employer may terminate this Employment Relationship at any time. In such event, Employee, if requested by Employer, shall continue to render his/her services and shall be paid the basic compensation for up to fourteen (14) days following the notification date of termination. There shall be no other severance allowance payable to Employee. Employees may terminate this Employment Relationship upon fourteen (14) days written notice to Employer. In such event, employees shall continue to render their services and shall be paid the basic compensation up to the date of termination, but no severance allowance shall be paid.

DRESS CODE & DEMEANOR Employees are expected to present a clean and professional appearance whether in the corporate office or at managed properties. Employees who come into contact with the public or otherwise represent the Employer are expected to dress according to the guidelines specified in Exhibit A. On-site maintenance and construction personnel should follow dress code/grooming policy detailed in Exhibit B: “Dress Code Guidelines for On-Site Maintenance and Construction Employees”. It is also essential that all employees act in a professional manner and extend the highest courtesy to co-workers, visitors, clients, and vendors. A cheerful and positive attitude is essential to Employer’s commitment to extraordinary customer service and impeccable quality. Employee’s Initials__________ © Copyright 2011 Marathon Management, Inc.

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ATTENDANCE AND PUNCTUALITY All Employees are expected to report to work at the assigned time on each assigned day of work. If you are unable to report for work on time, you are required to telephone your immediate supervisor or another Employer’s Officer with a full explanation. Repeated failure to report for work on time, or poor attendance, may result in dismissal.

CUSTOMER SERVICE Over the years, The Employer has developed a tradition of outstanding customer service. Customer service is our most important responsibility and how your performance affects customer service will largely determine your success with The Employer. The Employer’s reputation is built on excellent service and quality work. Maintaining this reputation requires the active participation of every Employee. As a representative of the Employer, Employees will conduct themselves in a professional manner. Employees must be courteous and respectful to customers and fellow employees at all times.

SMOKE-FREE OFFICE ENVIRONMENT Employer’s offices, including on-site commercial and apartment offices and their common areas, are “smoke-free.” Employee may smoke only during his/her lunch or work break and at an inconspicuous location designated by employee’s supervisor, not visible to the public. After they are fully extinguished, butts are to be disposed of in waste receptacles.

DISCRIMINATION Employer, its officers, agents, managers, department heads and supervisors shall not and will not tolerate discriminatory practices or acts against any person based on race, religion, sex, marital status, age, color, disability, or national origin. All employees, without exception, shall report any and all incidents they believe to be discriminatory in nature, including sexual discrimination and/or harassment, within seventy-two (72) hours, confidentially in writing directly to the President of Marathon Management, Inc. Correspondence regarding such acts is to be sealed in an envelope addressed to Robert G. Johnson, President, and marked “confidential.” All details regarding the incident shall be fully explained, including dates and times of occurrence and naming individuals involved. Anyone failing to submit acts of discrimination in writing to the President in a timely manner shall waive their claims of discrimination and/or harassment against the Employer, its officers, agents, and employees. It is further understood that verbal accusations with regard to discrimination, including sexual discrimination and/or harassment, shall be considered gossip and shall not be construed as notification.

Employee’s Initials__________ © Copyright 2011 Marathon Management, Inc.

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CONFIDENTIALITY Employer has spent considerable funds and energy developing its systems, procedures, programs, forms, databases and know-how. It is understood that the dissemination and use of any part of this information outside of Employer environment would cause Employer irreparable harm. Therefore, as a condition of employment, it is required that all employees, regardless of position, sign Employer’s Confidentiality Agreement Exhibit C attached.

SEXUAL HARASSMENT It is illegal and against Employer’s policy for any employee, male or female, to sexually harass another employee by (a) making unwelcome sexual advances or requests for sexual favors or other verbal or physical conduct of a sexual nature a condition of an employee’s continued employment, (b) making submission to or rejections of such conduct the basis for employment decisions affecting employee, or (c) creating an intimidating, hostile or offensive work environment by such conduct and (d) as more fully described in Exhibit D attached. Employees who believe they have been the subject of sexual harassment shall immediately report the alleged act in writing to the President of Marathon Management Inc. An investigation of all complaints will be undertaken immediately. Any supervisor, department head or other employee who has been found by Employer, after appropriate investigation, to have sexually harassed another employee will be subject to appropriate sanctions and disciplinary action, including possible termination of employment, depending on the circumstances.

MISCELLANEOUS TERMS AND CONDITIONS Notices: Any notice required, or permitted to be given, under these Personnel Policies and Conditions of Employment shall be sufficient if in writing and if sent by mail or hand delivered to Employee at their last known residence, and Employer at its principal office. Waiver of Breach: The waiver by either Employer or Employee of the breach of any provision in these Personnel Policies and Conditions of Employment shall not be construed as a waiver of any subsequent breach of either Employer or Employee. Assignment: The rights and obligations of Employer under these Personnel Policies and Conditions of Employment shall inure to the benefit of, and shall be binding upon, the successors and assigns of Employer. Employee shall have no right to assign employee’s rights or obligations. Construction: The policies and conditions described within these Personnel Policies and Conditions of Employment shall not be construed to conflict with federal or state employment laws or to limit either party’s rights under these laws. Employee’s Initials__________ © Copyright 2011 Marathon Management, Inc.

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GENERAL EMPLOYMENT RELEASE In the event that I, ______________ ________________________, am released during the initial ninety (90) days of employment “probationary period”, or “with cause” as described in the “Termination and Disciplinary Action” section of these Personnel Policies and Conditions of Employment, I agree to release and forever discharge Marathon Management, Inc., its Officers and Employees and the Officers and Employees of all related affiliated companies, entities and persons, of and from all actions, claims for relief, wages, overtime suits, debts, due sums of moneys, accounts, bonds, bills, agreements, promises, controversies, damages, claims and demands whatsoever, in law or in equity which I ever had or now have upon or by reason of any matter, cause or thing whatsoever.

IN WITNESS WHEREOF, I have hereunto set my hand on the

___________________________ Employee

day of ___________, 20__

______________________________ For Employer

ACCEPTANCE OF CONDITIONS OF EMPLOYMENT, EMPLOYEE MANUAL & POLICIES: I have read, understand, and accept the Employer’s Conditions of Employment, Employee Manual and Policies including all referenced Exhibits (A – F) and all applicable addendums noted and initialed on the page three (3). I acknowledge that employment is at will and that this Conditions of Employment, Employee Manual and Policies document does not constitute an employment contract. By initialing below, I confirm that I have received a complete copy of these Conditions of Employment, Employee Manual & Policies including all referenced Exhibits and applicable Addendums, and, apart from NOPAs, affirm that there are no other documents, with regards to my employment, written or oral, and that this document contains the complete understanding regarding our employment relationship which can only be modified in writing and signed by both me and Employer.

Employee’s Initials__________ © Copyright 2011 Marathon Management, Inc.

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E12 Page 16 of 24 Exhibit A DRESS CODE/GROOMING POLICY

All Employees are required to be appropriately dressed and groomed during working hours and when representing the Employer. Employees should appear neat and professional at all times and are required to dress conservatively in a manner that would not offend clients, vendors, other professionals or fellow Employees. Listed below is a general overview of acceptable business attire as well as a listing of some of the more common items that are not appropriate for our work environment both for the Onsite Employees and the corporate office. Garments must be of a length and fit that are suitable to the build and stature of the employee. Tops must be long enough to clearly overlap the beltline or stay tucked in during the course of normal movement during the day. No bare-midriff shirts/blouses, tank tops, spaghetti straps. Necklines of all upper garments must be modest. Low cut necklines are prohibited, and the cut of garments must not expose undergarments or cleavage. Garments that are distracting or inappropriate are prohibited.

Dress Code – Office Employees For Men:  Business Suits  Dress Slacks (properly pressed, hemmed, and not touching the ground)  Khakis  Collared button up shirts (pressed and in good repair)  Conservative Polo’s  Leather shoes (non-athletic)

For Women:  Dress Slacks (properly pressed, hemmed and not touching the ground)  Dresses and skirts no shorter than 2 inches above the knee  Leggings are only acceptable if worn with dresses or skirts no more than 6 inches above the knee.  Blazers/blouses, cardigans and sweaters.  Sleeveless dresses and blouses are acceptable with 2 inch straps if worn with a blazer outside of office or with clients.  Proper undergarments should be worn at all times.  High Heels, Dress Sandals (open toe acceptable and without socks), Dress boots and loafers.

Employee’s Initials__________ © Copyright 2011 Marathon Management, Inc.

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E12 Page 17 of 24

  

Inappropriate at any time – Men and Women: Sweatshirts and T-shirts  Fish net stockings Shirts without collars (men only)  Beach thongs Shorts, leather pants, sweatpants and yoga  Shoes without socks (men only) pants  Hiking Boots Halter or tank tops  Unkempt appearance (including hair and

  See through clothing  Wrinkled, dirty or in need of repair

facial hair)

 Tattoos and body piercings may not be

visible in work attire. The Employer does make reasonable accommodations for dress and/or grooming directly related to an Employee’s religion, ethnicity or disabilities.

Grooming As an Employee, you are the Employer’s representative to the public and your appearance should reflect the Employer’s professional image. The Employer’s business involves contact with the public and therefore requires Employees to dress in a conservative manner that is not likely to offend our customers, vendors, or fellow Employees.

• Cleanliness, neatness (pressed attire), good personal hygiene, and appropriate dress are • • • • •

expected of Employees at all times. The Employer maintains a fragrance/cologne free workplace. The Employer does not allow facial jewelry, including eyebrow, nose, lip, or tongue piercing. The Employer does not allow earrings on male Employees. Earrings on women and hair color on both men and women should be conservative. Employees with tattoos must agree to keep them covered in the workplace and in meetings with vendors or customers of the Employer.

The Employer does make reasonable accommodations for dress or grooming directly related to an Employee’s religion, ethnicity, or disabilities. Your manager/supervisor is responsible for ensuring that you adhere to this policy. If your supervisor feels your personal appearance is inappropriate, you may be asked to leave the workplace and return properly dressed or groomed. Under such circumstance, you will not be compensated for the time away from work. Disregarding or failing to comply with this standard of Dress and Grooming Code could lead to disciplinary action, up to and including termination of employment. Consult your manager/supervisor if you have questions as to what constitutes appropriate appearance. Employee Signature: _____________________________

Date: _____________________

Employee’s Initials__________ © Copyright 2011 Marathon Management, Inc.

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E12 Page 18 of 24 Exhibit B

Dress Code Guidelines for On-Site Maintenance and Construction Employees On-Site Maintenance and Construction employees are responsible for providing their own work clothing, not including personal protective equipment. Work clothing includes durable pants and shirts, jackets and coats, cold weather clothing, standard work gloves, and durable hard-toed shoes and boots. Personal protective equipment that is provided by Employer includes hard hats, safety goggles and glasses, respirators, harnesses, lanyards and other fall protection equipment, and chemical resistant gloves. This equipment shall be provided upon request. No work shall be performed that requires such equipment until said equipment is provided. Furthermore, On-Site Maintenance and Construction employees shall maintain their own work clothing and personal protective equipment. Work clothing shall be neat and clean and without rips, tears and holes. Work clothing shall be worn in a neat and orderly fashion. No offensive or vulgar language, captions, or pictures displayed on any work clothing will be tolerated. Any violation of the personal protective equipment provisions of this Dress Code shall be cause for immediate termination. Any repeated violation of the other provisions of this Dress Code shall be cause for termination after prior receipt of one written warning. During the summer months (80+ degrees), construction workers may wear casual shorts and shirts. Cutoffs are inappropriate at any time.

Employee Signature: _____________________________

Date: _____________________

Employee’s Initials__________ © Copyright 2011 Marathon Management, Inc.

Revised 02/02/16

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E12 Page 19 of 24 Exhibit C Confidentiality Agreement In consideration of my employment by Marathon Management Inc. (“Employer”) and compensation or other monies paid or to be paid to me by Employer, I agree as follows: 1. Definition of Confidential Information. As used in this Agreement, the term "Confidential Information" means: a. Proprietary information of Employer including, but not limited to, (i) the nature of the work I am employed by Employer to perform and the work plan Employer has created for me to use in performing my work, and (ii) Employer’s database, forms, report formats, programs and sources including, but not limited to, any and all data gathered by me or through my investigations or sources developed by me while employed by Employer, all of which I acknowledge to have been carefully formulated and devised by Employer and part of its proprietary information; b. Information marked or designated by Employer as proprietary or confidential; c. Information, whether or not in written form and whether or not designated as confidential, which is known to me as being treated by Employer as confidential; and d. Information provided to Employer by third parties, which Employer is obligated to keep confidential. Confidential Information includes, but is not limited to, written data, computer data, programs, formats, documentation, and processes, know how, customer lists, marketing plans, sources, ideas, discoveries, and financial and technical information. 2. Ownership. I acknowledge that all Confidential Information is and shall continue to be the exclusive property of Employer whether or not prepared in whole or in part by me and whether or not disclosed or entrusted to me in connection with my work for Employer. 3. Acknowledgement of Receipt of Confidential Information. I acknowledge that in the course of performing my duties for Employer, I will have access to Confidential Information, the ownership and confidential status of which are highly important to Employer, and I agree to comply with all Employer’s policies and procedures for the protection of Confidential Information. 4. Acknowledgement of Irreparable Harm. I acknowledge that any disclosure of Confidential Information will cause irreparable harm to Employer. 5. Covenant of Non-Disclosure. I agree not to disclose Confidential Information, directly or indirectly, under any circumstances or by any means, to any third person, or to discuss any Confidential Information with any third party without the express written consent of Employer. Employee’s Initials__________ © Copyright 2011 Marathon Management, Inc.

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E12 Page 20 of 24

6. Covenant of Non-Use. I agree that I will not copy, transmit, reproduce, summarize, quote, or make any commercial or other use whatsoever of Confidential Information, except as may be necessary to perform my duties for Employer. 7. Safeguard of Confidential Information. I agree to exercise the highest degree of care in safeguarding Confidential Information against loss, theft or other inadvertent disclosure, and agree generally to take all steps necessary to insure the maintenance of confidentiality. 8. Exclusions. This Agreement shall not apply to any information, now or hereafter, voluntarily disseminated by Employer to the public, or which otherwise becomes part of the public domain through lawful means. 1. Return of Confidential Information. Upon completion of my task or assignment or upon termination of my employment by Employer, whichever first occurs or otherwise as requested, I will deliver promptly to Employer all Confidential Information and all work made for hire, in whatever form, that may be in my possession or under my control, but the limitations set forth in this Agreement will continue beyond the term of my employment.

IN WITNESS WHEREOF the parties have executed this confidentiality Agreement as of the day of ________________________, 20 .

Employee Signature:

__________

Employee’s Initials__________ © Copyright 2011 Marathon Management, Inc.

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E12 Page 21 of 24 Exhibit D Sexual Harassment Policy Statement

Employer affirms its commitment to ensuring an environment for all employees that is fair, humane, and respectful; an environment that supports and rewards employee performance on the basis of relevant considerations such as ability and effort. Behaviors that inappropriately assert sexuality as relevant to employee performance are damaging to this environment. As part of Employer’s continuing affirmative action efforts and pursuant to the guidelines on sex discrimination issued under Section 703 of Title VII, by the Equal Employment Opportunity Commission, the Employer endorses the following policy: 1. It is illegal and against the policies of this Company for any employee, male or female, to sexually harass another employee by (a) making unwelcome sexual advances or requests for sexual favors or other verbal or physical conduct of a sexual nature, a condition of an employee’s continued employment, or (b) making submission to or rejections of such conduct the basis for employment decisions affecting the employee, or (c) creating an intimidating, hostile or offensive working environment by such conduct. 2. Any employee who believes he or she has been the subject of sexual discrimination or harassment should report the alleged act immediately in writing to the President of Marathon Management, Inc. An investigation of all complaints will be undertaken immediately. Any supervisor, department head or other employee who has been found by Employer, after appropriate investigation, to have sexually discriminated against or harassed another employee will be subject to appropriate sanctions, including possible termination, depending on the circumstances. Employer accepts the proposition that sexual harassment, like any civil rights violation, generates a harmful atmosphere in the workplace. Employer further recognizes that the question of whether a particular action or incident is a purely personal, social relationship without a discriminatory employment effect requires a determination based on all the facts in this matter. Employer also recognizes that false accusations of sexual harassment can have serious effects on innocent women and men. We expect all employees to act responsibly and to ensure a pleasant working environment free of discrimination.

Employee Signature: _________________________________

Date: ________________

Employee’s Initials__________ © Copyright 2011 Marathon Management, Inc.

Revised 02/02/16

No portion of this document may be reproduced without written permission of Marathon Management, Inc

E12 Page 22 of 24 Exhibit E Alcohol and Drug Policy Marathon Management (the “Employer”) has a responsibility to our employees, clients and the public to ensure safe working conditions. To satisfy these responsibilities, Employer must establish a work environment where our employees, clients and the general public are free from the effects of drugs, alcohol, or other job-impairing substances. Employees reporting for work, working, or “on call” under the influence of alcohol, illegal drugs, drugs not medically authorized, or any other controlled or illegal substances which impair job performance, or who pose a hazard to the safety and welfare of others is strictly prohibited and will result in immediate disciplinary action including suspension or termination. Employees found to be in the possession of any of the above substances will also be subject to immediate disciplinary action including suspension or termination. For the purposes of this policy “work time” shall include lunch, breaks, rest periods and assigned to “on call” work status. Employees must promptly report in writing to the Human Resources Department the use of all medically authorized drugs (prescription drugs) or other substances which can impair job performance, and provide written medical authorization from a physician to work while using such authorized drugs. It is the Employee’s responsibility to determine from their physician whether or not the prescribed drug would impair his or her job performance. Failure to report the use of such drugs or other substances and to provide proper medical authorization may result in disciplinary action including suspension or termination. Whenever Employer has reasonable suspicion that an employee is under the influence of alcohol or drugs, the employee in question will be asked to submit to discovery testing to identify the use of alcohol or drugs. Any trace of alcohol, illegal drugs, and drugs not medically authorized, or any other controlled or illegal substances which impair job performance, revealed by the discovery test will be grounds for disciplinary action including suspension or termination. Any accident involving property or equipment damage, or physical injury will be cause for discovery testing for drugs and alcohol. In addition to individualized testing based upon reasonable suspicion, Employer may require any or all employees to submit to periodic and unannounced discovery testing. An employee who is found to be under the influence of or impaired by alcohol, controlled or illegal drugs, or other substance covered by this policy as stated above, will be subject to disciplinary action including immediate suspension or termination An employee who refuses to submit to discovery testing for alcohol, controlled or illegal drugs will be subjected to immediate suspension or termination. Employer reserves the right to inspect and/or search all company property, all company managed property, as well as an employee’s personal property on company premises (including employee’s vehicle, tools, desk, purses, containers and designated company apartments) all Employee’s Initials__________ © Copyright 2011 Marathon Management, Inc.

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E12 Page 23 of 24 without notice for alcohol, controlled or illegal substances or any other substances which may impair job performance. Refusal to submit to any such inspection or refusal to cooperate in any investigation will subject the employee to disciplinary action including immediate suspension or termination. In lieu of termination for on-site use or possession of alcohol or drugs the Employer may, at the company’s sole discretion, seek to provide through Employer’s health insurance and other welfare agencies, including directing employees to a drug rehabilitation program, an opportunity for employees to deal with drug and alcohol related problems when any employee voluntarily requests assistance in dealing with a personal drug and/or alcohol problem before prescribed or unannounced testing. The discontinuation of any involvement with alcohol or drugs is an essential requisite for participation in any treatment program. Employer solely reserves the right to determine whether reasonable suspicion exists, the level of discipline to be applied and whether an employee should be given the opportunity to participate in a drug or alcohol treatment program, provided however, that its’ determinations shall not be arbitrary or capricious. For the Purpose of this Alcohol and Drug Policy the following definition of terms is provided: Reasonable suspicion is defined as specific articulable observations concerning such circumstances as the work performance, appearance (including, for example, noticeable odor of an alcoholic beverage or cannabis), behavior, or speech of employee, or as being involved in an accident on Company premises or Company managed premises which results in physical injury or property damage. Under the Influence is defined as any detectable level of alcohol or drugs in an employee’s blood or urine or any noticeable or perceptible impairment of the employee’s mental or physical faculties. Controlled substances are defined as all forms of narcotics, depressants, stimulants, hallucinogens, and cannabis, whose sale, purchase, transfer, use or possession is prohibited or restricted by law. Over-the-counter-drugs are those which are generally available without a prescription from a medical doctor and are limited to those drugs which are capable of impairing the judgment of any employee to safely perform his or her duties. Prescription drugs are defined as those drugs which are used in the course of medical treatment and have been prescribed and authorized for use by a licensed practitioner / physician or dentist. I have read and fully understand the Employer’s Alcohol and Drug Policy stated above

Employee’s Initials__________ © Copyright 2011 Marathon Management, Inc.

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Exhibit F Washington Real Estate Policy and Procedures

1. Licensees Level of Supervision Robert G. Johnson is Marathon Real Estate Services, LLC’s sole Principal Real Estate Broker. Marathon Real Estate Services, LLC. has no additional Licensees and therefore does not maintain a policy for Supervision of Licensees by Principal Broker. 2. Heighten Level of Licensee With Less Than Two Years Real Estate Experience Marathon Real Estate Services, LLC, has no Licensees other than the Principal Real Estate Broker Robert G. Johnson and therefore does not monitor or maintain any licensees’ Licenses. 3. Home Inspection Referrals Marathon Real Estate Services, LLC, does not perform single family real estate brokerage in the State of Washington and therefore does not make any referral of home inspectors and therefore does not maintain a policy for such referrals. 4. Licensee Insurance Maintenance Policy Marathon Real Estate Services, LLC, does not currently nor in the past 15 years performed any Real Estate Activity in the State of Washington and therefore a policy is not required.

Employee Signature: _________________________________

Date: ________________

Employee’s Initials__________ © Copyright 2011 Marathon Management, Inc.

Revised 02/02/16

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