I.        MEDICAL/DENTAL PLAN

• A major medical , dental and vision program
• Prescription Card
• Premium deductions are from pre-tax earnings
• See the benefit handbooks for details

II.       PAID VACATION

• Two weeks vacation each fiscal year
• Three weeks after 5 years of service with the company
• Four weeks after 10 years of service with the company
• Vacation time does not accumulate from year to year

III.      LIFE INSURANCE

• Completely Company funded
• Amount is 2 times your base salary

IV.     ACCIDENTAL DEATH & DISMEMBERMENT

• Completely Company funded
• Double indemnity for accidental death
• Loss of one member, 50% of principal sum; loss of two members, 100% of principal sum

V.       SICK PAY

• One week of sick pay each fiscal year
• Maximum of four weeks sick pay may be used at one time
• Additional years of service without using sick leave will count toward “Salary Vesting”
• Accumulated sick leave time will accumulate from year to year

VI.     SHORT TERM DISABILITY

• Completely company funded
• Becomes effective the first day of the first month after 12 months active service
• Pays 70% of income if temporarily disabled from 5th through 13th week
• Salary vesting may move income to 100% if qualified

VII.    LONG TERM DISABILITY

• Completely company funded
• Becomes eligible first day of the first month after 12 months active service
• Pays up to 60% of income per month commencing on the 91st day of disability
• Must be approved by Insurance Company

VIII.   EMPLOYEE ASSISTANCE PROGRAM (EAP)

• The EAP is a confidential program for Managers, Corporate Staff, and their eligible dependents experiencing personal problems that may be affecting work performance, job satisfaction or overall quality of life.  APS Health Care administers the company’s EAP at no cost to eligible employees and their families.

IX.     RETIREMENT PLAN

• 401(K) Retirement savings plan
• Allows savings with pre-tax dollars
• Eligible to participate after six months service, age 21, and 1000 hours of full-time service
• DavCo will match a portion of your contribution.  See the plan summary for details.

X.       PAID HOLIDAYS

• Thanksgiving
• Christmas

XI.     TUITION REIMBURSEMENT

• Upon completion of the course, the employee will submit to the Training Department a certified transcript of the grades received.  DavCo will reimburse the employee for the cost of tuition only based on the following criteria.  This is for successful completion of pre-approved business-related courses.  The employee must be employed at the conclusion of the course work to quality for reimbursement.  Books are not eligible for reimbursement.

• “A” letter grade – 100% reimbursement of tuition
• “B” letter grade – 90% reimbursement of tuition
• “C” letter grade – 80% reimbursement of tuition
• Below “C” letter grade – not qualified for reimbursement
• “Pass” in a Pass/Fail class – 100% reimbursement of tuition
• Please see the Director of Training for full details.

XII.    BONUS PROGRAM

• All Restaurant General Managers are eligible for a bonus program based on restaurant sales and profits.  Secondary Managers may participate depending on the program design currently in effect.  Bonuses are payable on a quarterly basis.

XIII.   EVALUATION AND RAISE SYSTEM

• All Restaurant Managers receive performance reviews quarterly.  All Managers are generally eligible for salary merit increases every October.  All Managers are eligible for merit increases until they reach the maximum of their salary range.

XIV.   DAVCO LEGACY RECOGNITION PROGRAM

• District Managers, salaried restaurant Management, and corporate staff are eligible to participate
• Points are awarded quarterly based on Operational, Human Resource, Customer Service categories as well as longevity.
• Points may be used immediately, or accumulated, for a variety of gifts from a merchandise catalog

XV.    RECRUITING BONUS PROGRAM

• Employees who refer candidates for management positions are eligible to receive points in DavCo’s Legacy Recognition program.  See program rules for details.,

XVI.   DIRECT DEPOSIT

• All levels of salaried management will be eligible for direct deposit of bi-weekly earnings.

XVII    CREDIT UNION

• As an employee of DavCo Restaurants, you are eligible to join Tower Federal Credit Union and enjoy:

• Direct Deposit/Free Checking (All levels of salaried management)
• No minimum balance, no monthly service charges for accounts with quarterly activity
• Low fixed rate on credit cards
• Higher dividend on savings account
• Free Home Banking

DavCo Restaurants, Inc.      1657 Crofton Boulevard      Crofton, MD 21114

Corporate 410-721-3770       Baltimore 410-793-3905       Washington, DC 301-261-6860

Fax 410-793-0616      www.davcorestaurants.com