EMPLOYEE REFERRAL BONUS POLICY
It is the company policy to reward eligible employees for referring qualified candidates who are subsequently hired into a referral-eligible position within the company.

PROCEDURE

1. Management will determine which of its positions will qualify for an employee referral bonus.
2. The Referral Bonus form lists the eligible positions and the associated bonus amounts. (Referral Bonus form 115A).
3. All employees at Arete Living managed communities are eligible for this program with the exception of:
   1. Managers or individuals involved in the hiring process
   2. Employees whose referrals were identified through their participation in recruiting programs (i.e., job fairs, college recruiting events, etc.)
   3. Employees who work in the human resources or administration departments
   4. Employees who terminate from the company prior to the time of award payout
4. The following candidate referrals are not considered eligible for the program:
   1. Referrals previously submitted by another employee within the last 12 months
   2. Referrals of temporary or agency employees who currently work for an Arete Living managed community or who have worked with the company within the last 12 months
   3. Referrals of former employees who have worked for Avamere Communities within the last 12 months
5. Both the employee and the referred candidate must be active employees at Arete Living or its managed communities at time of award payout.
6. There is no limit to the number of employee referral awards earned.
7. The referred employee must remain employed in a full-time, active status for a referral bonus to be paid out.
8. The referral bonus will be paid out as follows:
   1. 50% of total referral bonus amount will be paid out 90 days after new employee’s date of hire.
   2. The remaining 50% of total bonus amount will be paid out 180 days after the new employee’s date of hire.
   3. Referral bonuses will be added to the applicable referring employee’s regular paycheck.
9. An employee remains eligible for the referral bonus for a period of 12 months from the date of submittal.
10. Arete Living reserves the right to change, adjust, or discontinue this program at any time for any reason. Applicable taxes will be taken from the referral bonus.

*The referred employee must remain employed in a full-time, active status for referral bonus to be paid out. 50% of total referral bonus amount will be paid out 90 days after new employee’s date of hire. The remaining 50% of total referral bonus amount will be paid out 180 days after the new employee’s date of hire. Bonuses will be added to referring employee’s regular paycheck.