Aero Aviation

Employee Handbook
 Welcome to Aero Aviation
 History of Aero Aviation
 Mission of Aero Aviation
 Equal Employment Opportunity
 Sexual Harassment
 Employee Classification
 New Employee Information
o New Employee Evaluation Period
o Seniority
o Employee Compensation
o Health Examinations
 Scheduling
o Overtime
o Flex-time
 Performance Reviews
 Benefit Plans
o Employee Assistance Program
o Family Care Leave
o Funeral Leave
o Holiday
o Jury Duty Leave
o Maternity Leave
o Military Leave
o Vacations
o Tuition Assistance
o Sick Days
 Responsibilities
o Attendance
o Dress Code
o Personnel Records
o Uniforms
 Miscellaneous
o Second Jobs
o Promotional Opportunities
o Smoking
o Inclement Weather Policy
o Mentoring Program
o Meal & Lodging Reimbursement
o Fitness For Duty Program
 Disciplinary Process
 Grievance Process
 Termination of Employee
 Handbook Revision Procedure
 Receipt of Aero Aviation Handbook
WELCOME TO AERO AVIATION

We welcome you as a new Aero Aviation Team member and would like you to know that we
are happy to have you as a member of our team. You are now part of a team dedicated to
providing the finest quality of general aviation flight services for our customers.

As a team member, you have an important role to play in the success of Aero Aviation. Each
of us, in our various jobs, are instrumental in the pursuit of obtaining our mission, and the
success of other employees throughout the organization. How well you perform your role and
relate to your fellow teammates has a direct bearing on our overall success.

We wish to provide our team members with a safe, clean, and friendly atmosphere to work
in. Each of us can help to achieve this if we:

 Promote team spirit and show respect for team members

 Assist in maintaining a safe and clean work environment
 Accept responsibility for individual actions
 Foster interdepartmental cooperation
 Perform our jobs to the best of our abilities

We sincerely hope that you find your employment with Aero Aviation to be pleasant and
enjoyable.

Mission of Aero Aviation

Our mission is to be the Premier Fixed Base Operator in the Phoenix area. In our quest, we
will provide the finest quality general aviation flight services for our customers. We will
provide the general public with air transportation that meets their time schedules and
personal demands. We will offer quality aircraft servicing and maintenance to general aviation
pilots and companies. In servicing the needs of our customers, we will exemplify fast and
friendly customer care at all times.

Equal Employment Opportunity

Aero Aviation is committed to the maximum utilization of human resources and reflects this
objective in all aspects of daily operations. It is the policy of the Company not to use an
individual's age, sex, race, color, religion, mental or physical handicap, Vietnam era/disabled
veteran status, or natural origin as a factor for consideration in any matter affecting his/her
initial employment or subsequent treatment as an employee, unless required by law or as a
bona fide condition of employment.

Employee Classification

 FULL-TIME is an employee who works a minimum of forty hours a week and

receives full benefits.
 PART-TIME is an employee who works a minimum of 16 hours but no more than 32
hours and receives no benefits.
 SEASONAL is an employee who works during the busy seasons of the year. A
seasonal employee may work a minimum of 16 hours or up to 40 hours a week
based on departmental needs. A seasonal worker receives no benefits.
New Employee Information

NEW EMPLOYEE EVALUATION PERIOD:

Newly hired Aero Aviation employees will be placed on a 90 day probation. The immediate
supervisor will conduct a performance review at the end of 30, 60, and 90 days to evaluate
the development of the new employee, in addition to allowing the employee to realize what
areas he needs to improve in. These sessions will also allow the employee to determine the
scope of his job, as well as, the level of performance which is expected of him as an
employee of Aero Aviation. If the expectations are not met, the individual will be dismissed.
After successful completion of this period, the employee will be eligible for full benefit
coverage.

SENIORITY:

Aero Aviation recognizes two kinds of seniority:

1. Corporation Seniority which is total uninterrupted employment on the payroll of Aero

Aviation.
2. Departmental Seniority which is total uninterrupted service in a department or area
of the Company.

Employees who are terminated by death, retirement, dismissal, or layoffs exceeding one
year, will lose all accredited seniority.

EMPLOYEE COMPENSATION:

Payroll checks will be distributed every Friday at 2:00 p.m. by your immediate supervisor.
Employees not scheduled to work on payday will be able to pick-up their checks after 4:00
p.m. the day before in the Payroll Department.

First National Bank of Phoenix offers Aero Aviation employees the benefits of direct deposit
and payroll savings. Arrangements for these programs must be made in the payroll
department.

HEALTH EXAMINATIONS:

All new employees are required to complete a physical examination prior to employment with
Aero Aviation. Aero will cover all costs that are incurred for physicals. Every employee will be
required to have routine physical examinations every five years.

Pilots are required by law to have an FAA approved flight physical. All commercial pilots are
required to have a second class medical exam which is good for one year, and pilots having
an Airline Transport Rating must have a first class medical that is good for six months.

All new employees are also required to complete a drug screening test which is required by
the FAA.
SCHEDULING

OVERTIME:

Aero Aviation will do their best to distribute overtime in an equal and fair manner. You will be
given advanced notice of necessary overtime coverage, and will be paid accordingly. You will
be paid at one and one-half times your normal rate of pay in the following circumstances:

 Any hours worked in excess of the normal work day.

 Any hours worked in excess of forty hours per week.

You will receive two times your normal pay if overtime is scheduled on a Sunday or a Holiday.

FLEX-TIME:

Aero Aviation endorses the use of flex-time to accommodate the needs of the employee to
better manager family and work life. Flex-time should be granted to anyone who needs them,
and should only be rejected for valid business reasons.

Each department will establish a policy for the use of the flex-time starting times. Each policy
will have stated guidelines that each department must follow. These guidelines are as
follows:

 Requests for alternate starting times will be handled on a case by case basis at the
department level.
 Current agreement on overtime and forces on overtime will still apply.
 If shift coverage is required it will be the individual's responsibility to make
arrangements.
 If required the department may place a limit on how many hours the employee may
shift his/her starting time.
 Core hours of operation must be considered.
 The use of flex-time will be recorded as actual time worked on the timesheet with the
comments "per employee request, no penalty pay".

PERFORMANCE REVIEWS

Your immediate supervisor will conduct a performance review on a yearly basis - usually
around the anniversary date of your employment by Aero Aviation. During this meeting, the
two of you will discuss your job performance and your goals/objectives for the upcoming
year. You may also wish to utilize this time to discuss career advancement opportunities.

BENEFIT PLANS

Our goal is to have a benefit program which is competitive and attractive in supplementing
our employee’s needs. Full-time employees, their spouses, and unmarried dependent children
(within the age restrictions) are eligible for coverage after the employee completes three
months of service. The benefit programs that Aero Aviation offers are:

 Medical
 Dental
 Vision
 Life Insurance
 Disability
 Retirement
Each employee is responsible for meeting the premium for the benefit plan which they chose.
If employment ends for any reason, you may be eligible for up to twenty (20) months of
continued health insurance coverage under the COBRA Act. All premium payments are to be
made by the employee with no contributions from Aero.

ASSISTANCE PROGRAM:

Aero Aviation provides a confidential voluntary referral program designed to assist employees
with personal problems of a behavioral or medical nature. For more information, contact the
Human Resource Department.

FAMILY CARE LEAVE:

Aero Aviation allows employees a family care leave of absence in the following situations:

 responsibilities of adoption/birth of your child

 care for seriously ill/injured immediate family members
 care for aging parents

Leaves will not exceed twelve weeks. You will be paid for the first week of leave only, and will
be allowed to return in your same capacity, at the same rate of pay. An employee will be
subject to termination for falsifying the reason given for the leave.

FUNERAL LEAVE:

Aero Aviation will allow up to three days off at your regular rate of pay to attend the funeral
of immediate family members, defined by the Company as, and including "step", "grand" and
"in-law" relationships:

 husband/wife
 sister/brother
 son/daughter
 aunt/uncle
 father/mother
 niece/nephew

Arrangements for more than a three day leave must be made with your immediate
supervisor. If granted, no compensation will be awarded.

HOLIDAY BENEFITS

 HOLIDAY STAFFING

Aero Aviation recognizes 12 holidays with pay:

 New Year's Eve

 New Years Day
 Presidents Day
 Good Friday
 Easter Sunday
 Memorial Day
 Independence Day
 Labor Day
 Thanksgiving Day
 Christmas Day, and the day after.
Aero is open 24 hours/365 days a year and must meet minimum staffing requirements. Those
positions that must be staffed are:

 Two Front Desk Receptionists

 Four Line Crew
 Two Charter Pilots on call

At the beginning of each year, employees will be notified of the holidays that they are
expected to work. If the schedule creates a conflict, you are responsible for getting another
employee to cover your scheduled holiday work schedule.

Any employee may volunteer for any given holiday. The employee that volunteers to work on
a holiday must receive the permission of the assigned employee.

JURY DUTY LEAVE

Aero Aviation encourages its employees to fulfill the civic responsibility of jury duty. It is your
responsibility to notify your immediate supervisor once you are petitioned by the courts.
Employees will receive their regular pay during this period of participation.

MATERNITY LEAVE

Maternity leave will begin three weeks prior to the employees due date, and in normal
circumstances, will continue up to six weeks after the birth of the child. It is the policy of
Aero Aviation to pay the employee at her same rate of pay during this leave. The employee
will be allowed to return to work in her same capacity.

MILITARY LEAVE

Aero Aviation realizes that employees who serve in the National Guard and Reserve Units are
required to attend annual training, and are therefore protected under the Veteran's
Reemployment Rights Law. Under this law, the employee will be allowed to return to work in
the same capacity and at the same rate of pay. During this leave, the employee will be paid
the difference between his/her regular pay and military pay for up to two weeks.

VACATIONS

VACATIONS WITH PAY Aero Aviation employees with less than five years of service will be
allowed 80 hours of vacation time in a given calendar year. As you complete your fifth, tenth,
fifteenth, and twentieth year of service, you will be awarded an additional 40 hours of
vacation time.

Vacation time details:

 It is your responsibility to give your immediate supervisor no less than 24 hours
notice of the intention to use vacation time.
 No less than eight hours of vacation time may be taken at a time.
 Vacation time that is unused at the end of a calendar year may be "carried over" to
the next year, or you may request to be paid for the unused time.
 Employees, who are terminated because of death, retirement, layoff, or dismissal,
are entitled to receive compensation pay for the amount of vacation time they have
remaining at the time of separation.

TUITION ASSISTANCE
Aero Aviation encourages employees to continue their education, and thus offers the
additional benefit of tuition reimbursement.

About the tuition assistance program:

 You must submit a "Course Approval/Payment Request" form to your immediate
supervisor prior to enrollment.
 You will be reimbursed for 100% of the tuition and textbook costs providing you
satisfactorily complete the course. The Company considers grades of "C" or "Pass" as
satisfactory.
 If you receive an undergraduate or graduate degree while employed by Aero
Aviation, you will be asked to sign a contract stating that he/she will stay with the
Company for a period of one year. If this contract is broken, you will be expected to
reimburse the Company for all tuition and textbook costs.

SICK DAYS

Employees of Aero Aviation will receive 40 hours/5 days of sick leave with pay each year. You
will not receive compensation for sick time exceeding the allocated amount. At the end of the
year, if you have not used the 40 hours/5 days allotted, you will have the option to either
"carry over" the remaining time to the next year, or receive the compensation pay

Responsibilities

ATTENDANCE

In order to provide the most efficient service to our customers, daily attendance of all
employees is of the utmost importance. Employees are expected to be in his/her assigned
work areas and ready to begin work at the start of his/her assigned shift. If you are unable to
report to work on your scheduled time, you are expected to notify your supervisor in
advance, or report your absence within one hour of your scheduled work time. Excessive
absenteeism and failure to report your absences may be cause for disciplinary action, up to
and including termination. If you are absent due to illness for three or more consecutive
days, you are required to bring in a note from your personal physician stating the reason for
your absence and that you are released from his care.

DRESS CODE

All employees are expected to dress in appropriate clothing for their respective positions.
Appearance is always to look professional for the job in which the employee is performing.
Charter pilots, aircraft mechanics, and line crews are required to wear uniforms that are
provided by Aero. Employees in direct contact with the public must wear business attire at all
times, i.e. shirt with collar and dress pants or other appropriate dress. Jeans and shorts are
unacceptable.

PERSONNEL RECORDS
You are expected to report any change of address and telephone number to your immediate
supervisor and the Human Resources Department. You must also notify the Human
Resources Department of changes in name, marital status, beneficiary and dependents. If
you wish to examine your personnel file, you may do so by filling out a Personnel File
Examination Form available in the Human Resources Department. Your request will be
accommodated within three working days of the obtained form. Files will not be allowed to
leave the Human Resources Department.

UNIFORMS

Aero Aviation is a customer oriented business, therefore, it is essential that each of us dress
and act with the utmost professionalism. Aero will provide uniforms to the charter pilots,
aircraft mechanics, and line crew uniforms. These uniforms are to be worn while performing
your duties, and are to look clean and neat in appearance. If uniforms begin to become
discolored and worn, new uniforms will be replaced upon the receipt of the old uniform by
your supervisor. It is the responsibility of the employees to launder the uniforms.

Miscellaneous

SECOND JOBS

Aero Aviation expects you to consider your position as here as your primary occupation. We
do not discourage employees from having a second job, however, your position at Aero
Aviation should never be affected by it. Aero Aviation discourages their pilots to work with
other aviation companies as pilots. Aero needs to ensure that the pilots that are staffed have
the necessary clock time that is needed to perform their job at Aero.

PROMOTIONAL OPPORTUNITIES

Aero Aviation believes in promoting from within the Company. Consideration will be given to
the most qualified employees based on previous experience and performance records. It is
important to note that if the vacancy exists in a department other than the one in which you
are currently assigned, you must have completed a year of service in your current
department prior to bidding on the promotional transfer.

SMOKING

Aero Aviation is committed to providing a smoke-free environment for all of its employees.
Smoking is only permitted in the garden area outside of the Administration Building during
scheduled breaks. Employees who are caught smoking outside of the designated area will be
subject to disciplinary action, up to and including termination.

MENTORING PROGRAM

A mentor is a person "of relatively high organizational status who by mutual consent takes an
active interest in the career development of another person." Aero Aviation's formal
mentoring program consists of "specific goals, tasks to be accomplished, competencies to be
learned, projects to be carried out, jointly planned activities and a project schedule." Topics
usually covered include: risk-taking behaviors, communication skills, political skills, specific
job-related skills and career development. The manager has the responsibility to evaluate
individuals and potential mentor's personalities. The mentor and individual must enter this
arrangement voluntarily. Interested employees are to speak with their supervisors.

MEAL & LODGING REIMBURSEMENT

Aero Aviation will issue credit cards in the Company name to our charter pilots. Charges
made to these cards should only be for meal and lodging expenses incurred while on charter
flights. Receipts for charges made on these cards should be turned in to the Accounting
Department. Other employees incurring reimbursable expenses shall fill out an Employee
Expense Report. Expenses less than $25.00 can be reimbursed through Petty Cash in the
Accounting Department. In the case of where receipts are lost for items over $25.00, a
statement shall be submitted by the employee's supervisor for reimbursement. The
Accounting Department will issue checks for the amount due after receipt of the properly
approved expense reports.

FITNESS FOR DUTY PROGRAM

Aero Aviation is required by the FAA to perform drug testing on each pilot every six months.
Therefore, each pilot will be scheduled every six months for a scheduled drug test. In
maintaining a safe workplace, Aero Aviation will also utilize a random drug testing program.
On an irregular basis, unannounced random drug tests will be performed. Individuals will be
chosen randomly by a computer database. If an Aero Aviation employee is found to be
abusing alcohol or illegal substances, then Aero will provide rehabilitation assistance for one
occurrence. If an individual would have a second occurrence, then that employee would be
terminated.

DISCIPLINARY PROCESS

Every employee is expected to follow rules and standards set by Aero. If an employee fails to
comply with any of Aero's rules the following disciplinary action process will be followed:

1. Informal warning
2. Formal warning
3. 1 Day off without pay
4. 3 Days off without pay
5. 5 Days off without pay
6. Termination.

GRIEVANCE PROCESS

Aero Aviation believes in creating a climate for each employee to assure them that they can
voice their dissatisfaction with their superiors without fear of reprisal. Aero uses the open-
door policy for settling employee complaints. Problems and concerns should be voiced to your
immediate supervisor. If a resolution cannot be reached, meetings with succeeding levels of
supervision within your department will occur. Human Resources can be contacted to assist
with solving the problem or concern. The President will arrive at the final decision.

TERMINATION OF EMPLOYEE

Employees of Aero Aviation are expected to act and uphold ethical standards. Employees that
are found to have performed or assisted in each of the following examples, but not limited to,
will be terminated:

 Falsifying documentation
 Stealing company property
 Embezzling money

Upon termination of an Aero Aviation employee, individuals are expected to return any items
assigned for use. Examples of these would include: security badge, parking stickers, and any
keys issued. The Human Resource Administrator will conduct an exit interview with the
departing individual.

HANDBOOK REVISION PROCEDURE

The Aero Aviation Company Handbook will be reviewed on a yearly basis by the President of
the Company and Director of Human Resources. Any necessary changes will be made, and
new handbooks will be distributed to personnel.

RECEIPT OF AERO AVIATION HANDBOOK

I have received my personal copy of the Aero Aviation Company handbook, and will read it
carefully. If I have any questions regarding the rules, policies, terms and conditions of the
Company, I will consult with my immediate supervisor. I understand that my employment
with Aero Aviation is "at will", and can be terminated at any time by either the Company or
myself. I also agree and understand that the contents of this handbook do not create a
binding contract between the Company and myself.

_________________
Signature