MUTUAL INSURANCE EMPLOYEE HANDBOOK

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1 MUTUAL INSURANCE EMPLOYEE HANDBOOK A. Introduction to Handbook We would like to welcome you as an employee to Mutual Insurance Company. The purpose of this Handbook is to explain the current policies and procedures of our company. Management reserves the right and has the option to amend this handbook at any time. This Handbook supersedes all previous Handbooks and any past policies, written or unwritten. Please read the acknowledgment of receipt of the Handbook, sign it and submit to personnel. B. At-Will Employment Our employment relationship may be terminated at any time, with or without cause, by the employee or the company. None of the provisions in this Handbook create any contractual obligations or in any way conflict with the at-will nature of the employment relationship. Any agreement attempting to change the at-will employment relationship must be in writing and signed by an appropriate high ranking official of the company. C. Discrimination and Equal Opportunity Employment We are an Equal Opportunity Employer and it is the policy of the Company that all qualified applicants for employment will be recruited, hired, and assigned on the basis of merit without regard to race, creed, color, sex, age, national origin, or disability status.

2 D. Unlawful Harassment It is the policy of Mutual Insurance Company to maintain a working environment free of discrimination or harassment of any kind and will vigorously enforce this policy. Mutual prohibits sexual harassment of its employees in any form. Such conduct may result in disciplinary action up to and including dismissal. Furthermore, employees have the right to work in an environment free of harassment whether racial, sexual or otherwise. Harassment may be verbal or physical. All supervisory personnel are and will be reminded of their responsibilities in this area. While it is impossible to list all types of sexual harassment, they include, unwelcome sexual advances requests for sexual favors other verbal or physical conduct of a sexual nature Uninvited touching offensive sexual remarks sexual propositions offensive sexual flirtations display of sexually suggestive objects or pictures verbal comments about an individual's body sexually offensive dress Swift, appropriate, remedial action will be taken in response to any report or indication of abuse, threats, intimidation or harassment (sexual, physical, or otherwise) directed toward an employee. If any employee feels they are being harassed or mistreated in any way, they should report it immediately to their supervisor or Company Director.

3 All reports of harassment will be handled in a prompt, appropriate and confidential manner. Discrimination and harassment will result in appropriate disciplinary action which could include termination. Mutual strongly disapproves of harassment related to the workplace and will take appropriate corrective action against those who violate the policy. No retaliation will be tolerated against persons reporting possible acts of harassment. Q. Acceptable Use Policy for Employee Use of the Internet Summary This policy sets out guidelines for acceptable use of the Internet by employees of Mutual Insurance Co. The primary purpose for which access to the Internet is provided by Mutual Insurance Co. to its employees is to assist them in carrying out the duties of their employment. They may also use the Internet for reasonable private purposes which are consistent with this Acceptable Use Policy. They may not use the Internet access provided by Mutual Insurance Co. in such a way as to significantly interfere with the duties of their employment or to expose Mutual Insurance Co. to significant cost or risk of liability. Mutual may modify this policy upon 30 days notice in writing to its employees. What Is Acceptable Use Subject to the balance of this policy, employees may use the Internet access provided by Ellington Mutual for: Work-related purposes; Sending and receiving personal messages, provided that if messages are sent with a Mutual address in the From: or Reply-To: header, a disclaimer shall accompany the to the effect that the views of the sender may not represent those of Mutual ; Reading and posting personal Usenet messages on the same condition specified above; Using instant messaging software for personal purposes; Accessing the World Wide Web for personal purposes; and

4 Utilizing any other Internet service or protocol for personal purposes after obtaining permission to do so from Mutual; provided in each case that the personal use is moderate in time, does not incur significant cost for Mutual and does not interfere with the employment duties of the employee or his or her colleagues. What Is Not Acceptable Use Except in the course of an employee's duties or with the express permission of Mutual, the Internet access provided by the company may not be used for: personal commercial purposes; sending unsolicited bulk ; disseminating confidential information of Mutual; any illegal purpose; Knowingly causing interference with or disruption to any network, information service, equipment or any user thereof; disseminating personal contact information of officers or employees of Mutual without their consent; knowingly causing any other person to view content which could render the company liable pursuant to equal opportunity or sex discriminaton legislation at the suit of that person; or knowingly downloading or requesting software or media files or data streams that the employee has reason to believe will use a greater amount of network bandwidth than is appropriate.

5 Consequences Of Unacceptable Use Mutual keeps and may monitor logs of Internet usage which may reveal information such as which Internet servers (including World Wide Web sites) have been accessed by employees, and the addresses of those with whom they have communicated. Mutual will not, however, but reserves the right to do so, engage in real-time surveillance of Internet usage, will not monitor the content of messages sent or received by its employees unless a copy of such message is sent or forwarded to the company by its recipient or sender in the ordinary way, and will not disclose any of the logged, or otherwise collected, information to a third party except under compulsion of law. Responsibility for use of the Internet that does not comply with this policy lies with the employee so using it, and such employee must indemnify Mutual for any direct loss and reasonably foreseeable consequential losses suffered by the company by reason of the breach of policy. Mutual will review any alleged breach of this Acceptable Use Policy on an individual basis. If the alleged breach is of a very serious nature which breaches the employee's duty of fidelity to the company (for example, ing confidential information of the company to a competitor), the employee shall be given an opportunity to be heard in relation to the alleged breach and if it is admitted or clearly established to the satisfaction of the company the breach may be treated as grounds for dismissal. Otherwise, an alleged breach shall be dealt with as follows: Initially, the employee shall be informed of the alleged breach, given an opportunity to respond to the allegation, and if it is not satisfactorily explained, be asked to desist from or where applicable to remedy the breach. If the breach is not desisted from or remedied, Mutual may either withdraw the employee's access to the Internet or provide a first warning to the employee, to which the employee shall have an opportunity to respond. If the infringing conduct continues the employee may be given a second and a third warning, to each of which he or she shall have an opportunity to respond. If a breach is committed after the third warning the employee may be dismissed.

6 R. Acknowledgment of Receipt of Handbook and At-Will Agreement MUTUAL INSURANCE COMPANY EMPLOYEE HANDBOOK AGREEMENT I acknowledge that I have received a copy of the Mutual Insurance Company's Employee Handbook. I acknowledge that I am expected to know and be familiar with the contents and that I have read the handbook. I understand: - That this handbook will be updated from time to time and that I will be responsible for reading and filing the updates; and - That this handbook and its contents in no way, shape, or form create any contract of employment. - That our employment relationship may be terminated at any time, with or without cause, by the employee or the company. None of the provisions in this handbook create any contractual obligations or in any way conflict with the at will nature of the employment relationship. -Any agreement attempting to change the at-will employment relationship must be in writing and signed by the of the Company. Name Date

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