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TRANSITION ONBOARDING GUIDE National Veterinary Associates 2021

Contents

History of National Veterinary Associates (NVA)........................................................................................ 5 Values, Vision, and Structure .................................................................................................................. 6 Mission Statement and Core Values ....................................................................................................... 7 Leadership Attributes ............................................................................................................................. 8 Structure of NVA ..................................................................................................................................... 9 Transition Timeline & Contacts ............................................................................................................... 11 Transitioning to NVA ................................................................................................................................. 12 NVA Hospital Onboarding Timeline ........................................................................................................... 13 Key Contacts.............................................................................................................................................. 17 Hospital Leadership & Your Role .............................................................................................................. 20 Veterinary Hospital Manager Job Description ...................................................................................... 22 Managing Veterinarian Job Description ............................................................................................... 24 Acronyms...so many! ................................................................................................................................ 27 Transition Post Close Hospital Responsibilities ........................................................................................ 32 NVA Managers Checklist ........................................................................................................................... 33 People & Talent Services.......................................................................................................................... 34 Your People Services Team ....................................................................................................................... 35 Hospital Policies & Handbook ............................................................................................................... 36 Employee Files ....................................................................................................................................... 37 Recruiting & Job Descriptions ............................................................................................................... 41 Avature Hiring Hub ................................................................................................................................... 43 Ready to Hire? ....................................................................................................................................... 44 Pre-Employ ................................................................................................................................................ 46 Pre-Employ Background Screen Process ............................................................................................... 47 Direct Deposit Form .............................................................................................................................. 52 ADP (PETS) – How to access your paystubs............................................................................................... 53 Performance Reviews & Raises ................................................................................................................. 54 Termination / Separation .......................................................................................................................... 55 Family Medical Leave Act (FMLA) ............................................................................................................. 60 Employee Assistance Program & The Network ......................................................................................... 62 Payroll........................................................................................................................................................ 65 2|Page

Overtime Laws by State – July 2019 * ................................................................................................... 67 DVM Production ........................................................................................................................................ 68 DVM Employment Agreements/Contracts ................................................................................................ 69 Talent Unleashed Learning Management System .................................................................................... 70 Total Rewards ........................................................................................................................................... 74 Health Insurance ................................................................................................................................... 75 Ancillary Plans ....................................................................................................................................... 75 BSwift Online Health Insurance Enrollment System.................................................................................. 77 NVA Benefits Team Contacts..................................................................................................................... 80 401(K) ........................................................................................................................................................ 81 401(k) Plan –Empower Retirement Online Enrollment System ................................................................ 82 NVA Insurance Carrier and Vendor Contact List........................................................................................ 84 Bonus Opportunity! Site Incentive Plan .................................................................................................... 85 Other Insurance Coverage......................................................................................................................... 91 Insurance Contact Information ................................................................................................................... 92 Licenses and Permits ................................................................................................................................. 94 Vendors and Accounting .......................................................................................................................... 95 Vendors ..................................................................................................................................................... 96 NVA Preferred vendors (better pricing): .................................................................................................. 97 NVA AP Invoiced vs. Location Invoiced:..................................................................................................... 98 Wells Fargo Stagecoach Deposit Card ....................................................................................................... 99 Invoice Processing System (IPS) via Quickbase........................................................................................ 101 Rebate and Miscellaneous Checks .......................................................................................................... 103 Utilities .................................................................................................................................................... 104 Utility and Waste accounts via Engie .................................................................................................. 104 Telecommunication (Phone, TV, Internet, Wireless) accounts .......................................................... 104 Visa Guidelines ........................................................................................................................................ 107 Bad Debt.................................................................................................................................................. 108 NVA Staff and Doctor Discount at IDEXX Reference Laboratories ......................................................... 111 IT & Telecom ........................................................................................................................................... 118 IT Helpdesk & Conversion ....................................................................................................................... 120

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Vet Data Software for Reporting ............................................................................................................. 121 Telecommunications ............................................................................................................................... 122 Cell Phone Discounts ............................................................................................................................... 125 Accessing NVA Email Remotely .............................................................................................................. 128 Resetting Your Password ........................................................................................................................ 129 Creating an Email Signature in Outlook Desktop Application ................................................................ 130 How to Add Your NVA Email to Your iPhone .......................................................................................... 133 How to Add Your NVA Email to you Android Device .............................................................................. 136 NVA Client Service Center (CSC) .............................................................................................................. 138 Capital Expenditure Guidelines............................................................................................................... 140

Last Edited: July 17, 2021 4|Page

History of National Veterinary Associates (NVA) NVA was founded in 1996 by Dr. Stan Creighton with a goal to provide long-term support to hospitals and their teams while providing an avenue for Sellers to achieve their dreams and retain the legacy that they created. Stan’s vision has emphasis on supporting local medical standards as established by individual hospitals and practitioners. He believes that veterinary medicine is best practiced when veterinarians craft their own hospital and community specific strategies for high quality patient care and client services. This vision continues to guide NVA as we make available the tools and resources for hospitals to achieve their medical goals while avoiding any single standardized national plan that might not be the best fit for an individual hospital. The variety of tools and resources we provide include emerging research and care standards, access to our national medical database, human resource guidance, marketing support, recruiting assistance, accounting support, tax preparation, and training and education for staff. Managing veterinarians decide what level of medicine they would like their hospital to achieve, and NVA provides the support to get them there.  Since its inception, NVA has grown to over 1200 locations in the US and Canada including General Practice, Specialty/ER, Pet Resorts and Equine locations, as well as partnered with VetPartners in Australia, New Zealand, and Singapore.

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Values, Vision, and Structure National Veterinary Associates is different! We have a different vision and support method than many of the other “corporate” veterinary entities you may be familiar with. Here are some of the key differences you can look forward to: •

At its very core, NVA is an organization built around the idea of care; Care for animals, for clients, for DVMs, and for their staff. We pursue established, stable, successful hospitals and won’t change those things that make them great (the name, people, and medicine). That’s why we call it a “legacy” of care, it’s something permanent and enduring, and something no other company in our space can legitimately claim.

•

We do not dictate medicine/medical practice (will not require specific procedures, RX, etc.): we want hospitals to practice high quality medicine consistent with or above local and national standards but that medicine is decided locally, by the Managing Veterinarian and DVM team. We can provide support and education in some cases if a doctor or hospital has a special interest or wants to develop new skills. There is no formulary – we don’t mandate what medications can and can’t be used. Ordering and inventory is done at the local level as it has been done in the past.

•

We will not change normal operations of the hospital. Hospital policies including hours, employee schedules, holidays, etc. will stay the same.

•

We will not change your benefits. With the possible exception of health care, your benefits will remain as they are. CE and pet benefits will be the same as they have in the past. Health care is assessed for legal compliance and if we move a hospital to the NVA plan, it is one that is equal to the current level of benefits. If you do not receive health benefits now, you will have the opportunity in the future.

•

We will not change personnel (no hiring and firing procedure will occur).

•

We will not brand as NVA – hospital keeps your name, your culture, your logos, your legacy!

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Mission Statement and Core Values Mission Statement To improve the comfort and well-being of patients by providing progressive and compassionate veterinary care. We develop a team of individual hospitals that share knowledge to achieve sustainable growth.

Core Values 1. Service Excellence – We strive to provide the best client experience possible. 2. Integrity – Our actions are consistent with our values and beliefs. 3. Teamwork – WE value behavior that puts team performance ahead of individual performance and work together in order to achieve our goals. 4. Innovation – We are open-minded in our approach and believe that improvement will be achieved by continually evaluating and implementing new and different ideas. 5. Goal Orientation – We engage with intention, set expectations, and perform in such a way that goals are achieved. WE believe that continual self-evaluation will enable us to achieve our goals in the future.

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Leadership Attributes Leadership Attributes Candid: Is direct, forthright, and transparent in communications. Fair: Is objective and free from self-interest, prejudice, and favoritism. Empowers Others: Enables others to thrive by giving the gifts of autonomy, responsibility, and support. Serves Others: Is a servant leader. Acts in a courteous, gracious, and civil manner. Stewards resources to support organizational and professional growth of support staff. Passionate: Drives projects and goals with authentic sense of passion. Caring: Conveys sensitivity to human needs, and openness to true dialog. Strives to understand others’ feelings and perspectives.

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Structure of NVA NVA lives and breathes a structure of servant leadership. This means that NVA’s resources exist to support the needs of each location. In other words, NVA is here to support you, your hospital, and the team, the medicine, and of course, your patients and clients. We are guided by NVA’s investors who sit on a Board of Directors along with our C-Suite team: Chief Executive Officer (CEO) Greg Hartmann, President and Chief Operating Officer (COO) Brian Kelly, Chief Development Officer (CDO) Steve Ager, Chief Finance Officer (CFO) Peter McPhee, Chief Marketing Officer (CMO) Laura Koester, Chief Information Officer (CIO) Joe Leggio, Chief People Officer (CPO) Soo Hong, Chief Community Officer (CCO) Turpin Mott, and General Counsel Eric Smith. NVA’s support is provided through two main avenues: 1. Our Support Center located in Agoura Hills, CA and 2. Our Field Operations teams located regionally to effectively support all our locations: 1. The NVA Support Center is located at 29229 Canwood Street, Suite 100, Agoura Hills, CA 91301, and houses over 750 team members. Departments and resources include: Administration; Learning and Development; People and Talent Services and Total Rewards; Payroll; Accounting and Finance; Marketing; IT and HelpDesk; Client Service Center (CSC – Call Center); Legal; and Business Development. You can look forward to visiting the Support Center and meeting many of your key resources during your first year with NVA when you attend a Hospital Manager workshop. There is a Managing DVM workshop too. 2. NVA’s Field Operators are regionally oriented to provide on-site long-term support to you and your hospital. The Operators may not live in your town or your state but will visit and interact frequently. In partnership with you, they are responsible for assisting in maintaining and developing operations and the ongoing fiscal success of your hospital. The Operations team is headed by NVA’s President and COO, Brian Kelly and then three areas that are supported by Group Presidents: General Practice (GP), Sohail Malad; Specialty+ER and Equine, Lemar Height; and Pet Resorts, Anne Stanchfield. The United States is divided into regions that Vice Presidents of Operations for GP oversee: West by Jeff Poirier, Northwest and Central by Scott Lesht, Southeast by Rhonda Kratz, East by Andy Crish, Great Plains by Kiran Weaver, East Central by Brent Trinacty. From there, Regional Divisions* are comprised of a Director of Divisional Operations (DDO) or Division Leader (DL), Manager of Regional Operations (MRO), and Associate Manager of Regional Operations (AMRO). Some regions have Peer Development Partners to further support hospitals at the local level. *A map of the Groups and Regional Divisions can be found on the next page.

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Transition Timeline & Contacts

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Transitioning to NVA While we look to keep your hospital's medicine and culture the same, joiningNVA is still a time of change. This can be both an exciting opportunity as well as a time of nervousnessand apprehension. The good news is that you have an entire team of people to support you and ensurea smooth transition to NVA. The NVA Transition Team will be with you every step of the way during the four-month transition process. It is our goal to ensure that you and your team know what to expect during this time, know who to contact, get your questions answered, and feel at ease about this change. Before joining NVA you will meet with a designated Transition Manager (TM) as he/she will join you at your hospital to host a Staff Welcome Meeting. Your TM will then be your primary contact and support for anything you need during the four-month transition period. During these months, your TM will facilitate setup, access and training, answer questions, help direct you to resources, share about NVA, and support you in any other items that may arise. To note: • The Transition Timeline on the next several pages provide a schedule of what you can expect during the transition and by whom. • Your Transition Manager (TM) will facilitate your transition process and be your main point of contact; however, several other team member specialists from NVA’s Support Center who are dedicated to transitioning hospitals will be reaching out by phone and email on various items. • Your TM will likely not be onsite with you Day 1 post-close nor will he/she be there for several weeks at a time; he/she will ensure you are ready for Day 1 with NVA by checking in and then will come to visit in 2-4 weeks. • Your TM will likely visit you 1 or 2 times during your 4-month transition period with additional support visits from your Peer Development Partner whom you will meet later. The timeline on the next few pages will give you an idea of who will be contacting you, for what and at what point in the transition. Please note that this timeline is fluid. Meaning, that individuals will contact you within the timeframe listed but not necessarily “on day one” for example. Your TM will ensure these items take place in a timely manner, accurately and that you receive all the training and support you need on each.

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NVA Hospital Onboarding Timeline

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Visits: Due to COVID-19, Zoom may replace in-person visits. • Transition Manager to visit once between week 2-4 post-close • Division Leader and/or Regional Manager may visit as well

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Key Contacts During Transition Transition Group Amanda Le Vine Director, Transition & Operational Effectiveness Email: Amanda.Levine@nva.com Phone: 858-668-8692 Robert Hubbard Transition Manager Email: Robert.Hubbard@nva.com Phone: 818-482-5402 Jennifer Mellon Transition Manager Email: Jennifer.Mellon@nva.com Phone: 805-624-1865 Lisa Harpole Transition Manager Email: Lisa.Harpole@nva.com Phone: 760-695-2575 Meredith Beltinck Transition Manager Email: Meredith.Beltinck@nva.com Phone: 818-930-8121 Christina Sloan Transition Manager Email: Christina.Sloan@nva.com Phone: 951-205-0626 Deanna Roberts Transition Manager Email: Deanna.Roberts@nva.com Phone: 303-883-8213 Sarah Berry Transition Manager Email: Sarah.Berry@nva.com Phone: 360-304-9263

Learning and Development General Email: LD@nva.com

Payroll and DVM Production Evan Olson Payroll Transition Manager Role: Payroll setup and support and DVM Production training Email: Evan.Olson@nva.com Phone: 818-651-6534

Payroll (PETS) ADP PETS@nva.com Coaching Line ADP: 1-844-295-5973 Office Hours meetings with NVA Payroll Specialists will be provided to you at close.

Benefits/Health TransitionsHR@nva.com Brittany Rangel Senior Associate, Total Rewards and Transitions Email: Brittany.Rangel@NVA.com Phone: 818-307-5984 GCG Financial

Medical and Ancillary Benefits Consulting Email: nvabenefits@gcgfinancial.com

Empower Retirement 401k plans (formerly Mass Mutual) www.Retiresmart.com 310-899-3142 For questions regarding Financial Planning, contact Brandon Tesar with One Wealth Management at the number listed above.

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Transition Accounting

Other Insurance (PLIT, Property, WC)

Collin Rothermel Implementation Manager – Transition Accounting Role: Site Transition for Accounting Email: Collin.Rothermel@nva.com Phone: 805-436-0263

Lockton

Jason Trinidad Implementation Manager – Transition Accounting Role: Site Transition for Accounting Email: Jason.Trinidad@nva.com Phone: 805-777-7393 Rory Peters Transition Accounting Training Supervisor Role: Trains on IPS, Engie, and Revenue reporting Email: Rory.Peters@nva.com Phone: 818-483-0457 Carlos Gilbert Transition Accounting Specialist Role: Credit Card terminals, Merchant Accounts, Wellness Plans, and Online Pharmacy Conversions Email: Carlos.Gilbert@nva.com Phone: (818) 629-2900

Accounts Payable Beatrice McDonald Accounts Payable Transition Specialist Lead Role: Invoice Payment and Processing questions Email: Beatrice.McDonald@nva.com Phone: 818-707-5177 *For Transition period only. Will be assigned new AP Contact after graduation.

NVA Visa Cards Email: NVAVisa@nva.com

Adam Weiss - ABWeiss@Lockton.com Phone: 818-415 - 4825 • Workers Compensation (file claim via ESIS) • General Liability • Property & Environmental Liability • Auto Liability • Certificates of Insurance/Vehicle Insurance Cards

Gallagher

Michelle Lundy - Michelle_Lundy@AJG.com Phone: 805-422-3543 • Professional Liability (PLIT) • Cybersecurity

People & Talent Services (PaTS) HR General Email: HR@nva.com Maureen Sullivan People Partner Equine, West, Northwest Groups Email: Maureen.Sullivan@nva.com Phone: 805-367-5125 Joni Scimone HR Business Partner East and East Central Groups and Carolinas Division Email: Joni.Scimone@nva.com Phone: 805-657-3182 Rita Rossi-Martin HR Business Partner Central Group and Suncoast, Central & N> Florida, Atlantic Coast Divisions Email: Rita.Rossi-Martin@nva.com Phone: 724-601-3334 Glenn DeShields HR Business Partner Great Plains Group and Greater South Division Email: Glenn.DeShields@nva.com Phone: 609-707-8427

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Marketing General email: Marketing@nva.com

Telecommunications Kim Rice Telecommunications Manager Email: HelpDesk@nva.com Phone: 805-367-5172 Jenny Beltran Telecom Specialist Martinez Franklin Telecom Specialist Suzanne Montz Telecom Specialist Katherine Soto Telecom Associate Marco Villa Telecommunications Project Manager

Information Technologies (IT) HelpDesk 24 hours Email: HelpDesk@nva.com Phone 888-777-7804, Option 2

Technology Transition Support Amanda Kinard Sr. Service Desk Manager, Technology Transition Manager Mario Barrera Technology Transition Analyst

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Hospital Leadership & Your Role NVA typically has two leadership roles in each hospital. The Managing DVM (MDVM) and Hospital Manager (HM). Together these individuals run the day to day operations of the hospital and partner closely with NVA for support, long-term development, financial performance, budgets, large purchasing, and other key business items. As Leaders with NVA we would like to provide you both with your respective Hospital Manager and Managing MDVM job descriptions from NVA. They are located on the following pages. We understand that this may be the first time that you are seeing these so please take some time to review your own document as it pertains to how you have previously operated in your role and how your role may change now that you are part of the NVA family. We suggest to all of our new teams that you schedule a time to sit down together and discuss each other’s job description. The Managing DVM (MDVM) and Hospital Manager (HM) roles are what we dub as the local “Hospital Leadership Team” and while each role has its unique responsibilities, there is a lot of overlap as well when it comes to vision, development, and policy and procedure. In essence you are, together, an equal team leading your hospital. As the medical director, the MDVM oversees the Associate DVMs, all medical policies, practices, medical decisions, etc. The Hospital Manager oversees daily business operation, finances, marketing, support/lay staff, HR, etc. While these are delineated in the attached job descriptions, please know that each hospital interprets these as they best fit your leadership team dynamic and hospital culture. Additionally, many of the responsibilities require collaboration on your behaves – i.e., introducing a new medical procedure will only be beneficial and successful if the support staff is trained correctly, marketing occurs, and it’s fiscally appropriate for the hospital. It is important that as the leadership team for your hospital that you are both on the same page and understand what each role will give and need to operate and be successful. That is why we recommend a meeting between you both to solely discuss these duties. And of course, we are happy to answer any questions or further clarify these roles for you. Lastly, your long-term Division Leadership team will be instrumental in helping you to be successful and define these roles in the future.

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Veterinary Hospital Manager Job Description Job Summary The Hospital Manager is a leader and an integral member of the veterinary hospital management team. The Hospital Manager partners with the Managing DVM to provide a smooth and profitable operation by driving revenue and managing costs while creating a hospital culture based on high quality patient care and exceptional customer service. Responsibilities include managing, planning, and coordinating the overall operations of the hospital, and cultivating a supportive and collaborative team environment. Job Duties and Responsibilities Leadership and Planning • Acts as a champion for change and identifies, documents, shares, and promotes best practices. • Participates in the planning and budget maintenance process. • Establishes goals for the hospital and staff. • Creates the hospital schedule and manages labor costs to budget. Operations • Oversees employee benefits program and hospital insurance plans. • Develops and implements hospital policy, including DEA/Controlled Substances and OSHA compliance. • Performs quality checks and reviews of client files. • Monitors computer systems and works with HelpDesk to resolve technical system/equipment issues. People Management • Partners with the Managing DVM to address staffing needs including hiring, training, reviewing, and discipline of staff. • Implements performance-based incentive and rewards and recognition program. • Manages staff, including grooming and boarding staff (if applicable). • Tracks and maintains current licensure for all DVMs. Client Service • Demonstrates and reinforces the highest level of client service. • Resolves client issues and escalations and oversees client follow up communications. • Drives client visits through strategic communication and local marketing efforts (i.e., Community). Financial • Ensures payroll is accurately completed and submitted for all hospital staff. • Manages accounts receivable and cash on hand including performing invoice audit reviews. • Manages hospital inventory and controls facility and administrative costs. • Performs other duties essential to the performance of the hospital as assigned.

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Qualifications • • •

Bachelor’s degree in business or related degree is preferred. 3 – 5 years’ experience in a manager role including customer service experience. Experience in a hospital setting in positions of increased responsibility is a plus.

Knowledge and/or experience in the following areas: • Multi-functional operations including budget and labor management. • Manage time and tasks appropriately and remain flexible with assigned duties. • Supervisory and leadership experience. • Reporting and data analysis. • Problem solving and resolution management skills. • Oral and written communication skills. • Basic computer skills i.e., Microsoft Office suite (Previous practice management software knowledge preferred). • Interpersonal skills with staff and clients and works well in a team environment. • Customer service strategies and effective marketing techniques. • HR policies and protocol development. • Staff management including: coaching, developing, and motivating staff. • Conduct performance appraisals. • Delegate responsibility and achieve results with hospital team members. • Make decisions confidently and effectively. • Model a professional and courteous manner with staff and clients. Equal Employment Opportunity It is the policy of the company to afford equal opportunities to all applicants and employees regardless of race, color, religion, sex, national origin, age, non-disqualifying disability, or status as a disabled or Vietnam era veteran.

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Managing Veterinarian Job Description Job Summary The Managing Doctor is responsible for providing medical leadership for the hospital, managing associate veterinarians, and assuring regulatory compliance relating to the practice of veterinary medicine. The Managing Doctor is also responsible for creating an environment of teamwork in which quality medicine and exceptional client service are delivered. In partnership with the Hospital Manager, the Managing Doctor is responsible for the financial performance and general operations of the hospital under the guidance of Divisional Leadership. In addition, the Hospital Manager and Managing Doctor are responsible for cultivating a supportive and collaborative team environment.

Duties and Responsibilities Advancing Medical Care • Oversees surgical and medical cases for all doctors ensuring positive outcomes, accurate estimates, and client communication and education. • Answers client questions and concerns regarding medical and surgical procedures. • Provides oversight and direction of medical standards, quality of care, and inventory. • Establishes medical protocols. • Oversees transfer of medical cases from doctor to doctor. • Minimizes waste and controls costs relating to medical supplies, surgical instruments, and drug inventories. Leading Staff and Practice • Participants in the recruiting and interviewing process for Doctors, and when appropriate general staff members. • Monitors Doctor performance and production. • Develops and monitors hospital specific client compliance protocols and procedures. • Participates in technician appraisal and medical counseling sessions. • Ensures all medical staff receive applicable training, including the mentoring of new graduates. • Supports the Hospital Manager with staff training programs and tracking CE and DVM licensure. Financial Responsibilities • Drives revenue and hospital contribution growth which includes managing all hospital expenses. • Assists in the preparation of an annual planning strategy, operating budget, and capital budget. • Monitors key financial reports. Growing the Practice • Drives patient visits and encourages community involvement. • Embraces change and supports innovative programs within the hospital. • Monitors client service, marketing, and NVA growth initiatives. • Seeks out was to innovate operational practices that improve the growth of the hospital. 24 | P a g e

Skills and Basic Qualifications • • • • • • • • •

Doctor of Veterinary Medicine (DVM) degree, or equivalent, from an accredited university. Licensure in good standing to practice in the state in which applicant is to be employed. Commitment to practicing the highest standard of medicine and upholding the veterinary code of ethics. Demonstrates excellent verbal and written communication skills. Delegates tasks and achieves results with hospital team members. Makes decisions confidently and effectively. Leads employees by coaching, correcting, developing, and motivating them to achieve success. Manage time and tasks appropriately. Models a professional and courteous manner with staff and clients.

Equal Employment Opportunity It is the policy of the company to afford equal opportunities to all applicants and employees regardless of race, color, religion, sex, national origin, age, non-disqualifying disability, or status as a disabled or Vietnam era veteran.

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Passwords & Accounts You will be receiving access to several sites that require login and password. Please keep track of these. About every 90 days, you will be prompted to update your NVA master password; you will receive instructions via email on how to change this password. For help or troubleshooting with passwords or access to NVA sites/materials please email our HelpDesk at: HelpDesk@nva.com.

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Acronyms...so many! Acronym/Term

Long-version

Explanation

A/P

Accounts Payable

A/R

Accounts Receivable

AAHA

American Animal Hospital Association Above-, At-, Below-market production Associate Doctor of Veterinary Medicine Associate Manager of Regional Operations Average Transaction Charge/Client Board financial reporting Capital Expenditure

Refers to the business department/division/individual that is responsible for making payments owed by the company to suppliers and other creditors. At NVA, our Support Center department responsible for processing all vendor payments. Refers to the business department/division/individual in charge of receivables; receivables are a sale but where the profiter has yet to collect the money from the purchaser. The American Animal Hospital Association is a non-profit organization for companion animal veterinary hospitals requiring accreditation by meeting high standards of medicine, care, facility cleanliness, HR, etc. Typically, in reference to revenue/production of an ADVM; Compares the individual’s production to local market trends for their hospital.

Above-, At-, Below-market production ADVM AMRO

ATC or ACT BOARD BI CapEx

CE CEO

CFO

Continuing Education Chief Executive Officer

Chief Financial Officer

Refers to contracted doctors in the hospital who do not hold management or MDVM title.

Position that oversees HMs in their regional division. Reports to MRO or DL. Average amount each client spends during visit. NVA’s cloud-based reporting site for Hospital, Regional, and Management Teams. Capital expenditure, or CapEx, are funds used by a company to acquire or upgrade physical assets such as property, industrial buildings, or equipment. This requires the company to spread the cost of the expenditure (the fixed cost) over the useful life if the asset. If, however, the expense is one that maintains the asset at its current condition, the cost is deducted fully in the year of the expense. At NVA, Purchases over $500.00 for new equipment/furniture or that will extend the useful life of an existing asset are CapEx. Depreciation is taken over the useful life of the asset. Term refers to on-going educational opportunities for business, personal, professional, or technical growth and learning. The highest-ranking executive in a company whose main responsibilities include developing and implementing high level strategies, making major corporate decisions, managing the overall operations and resources of a company, and acting as the main point of communication between the board of directors and the corporate operations. NVA’s CEO is Greg Hartmann. The senior manager responsible for overseeing the financial activities of an entire company. The CFO’s duties include financial planning and monitoring

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COGS

Cost of Goods Sold / Cost of Sales

COO

Chief Operations Officer

CPO

Chief People Officer

CTO

Chief Technology Officer

CSR

Client Service Representative DL/DDO Division Leader/Director of Division Operations DBA Doing Business As Divested Hospital Divested Hospital EA EBITDA

ECR EOD and EOBD F&A FA

Employment Agreement Earnings Before Taxes Depreciation and Amortization Expedited Check Request End of Day; End of Business Day Facility and Administration Future Appointments

cash flow. He or she analyzes the company’s financial strengths and weaknesses and suggests plans for improvement. The CFO is similar to a treasurer or controller in the he or she is responsible for overseeing the accounting and finance departments and for ensuring that the company’s financial reports are accurate and completed on time. NVA’s CFO is Scott Shulman. Cost of goods sold (COGS) are the direct costs attributable to the production of the goods sold by a company. This amount includes the cost of the materials used in creating the good along with the direct labor costs used to produce the good. It excludes indirect expenses such as distribution costs and sales force costs. COGS appear on the income statement and can be deducted from revenue to calculate a company’s gross margin. Also referred to as “cost of sales”. The total of all non-labor costs used to generate services to a client. The senior manager who is responsible for managing the company’s day-today operations and reporting them to the Chief Executive Officer (CEO). NVA’s COO is Brian Kelly. The senior manager who is responsible for managing the company’s Human Resources and reporting them to the Chief Executive Officer (CEO). NVA’s COO is Brian Kelly. The senior manager who is responsible for managing the company’s IT operations and reporting them to the Chief Executive Officer (CEO). NVA’s COO is Brian Kelly. Refers to the position within a hospital commonly known as receptionist or the personnel working the front desk/welcome area. Position that oversees MRO and reports to SDO or COO.

This is the name that your facility goes by, not necessarily your legal name. Your legal name as supplied to you in your Welcome Email. Refers to a hospital bought/acquired by NVA but due to financial or social goals it is sold; The process of selling an asset. Divestment is the opposite of investment. Usually in reference to Associate DVM contracts negotiated, formally written out then agreed upon by signing at the time of sale; a contract. An approximate measure of a company's operating cash flow based on data from the company's income statement; It is your hospital's "Bottom Line" or revenue after expenses (except interest, taxes, depreciation and amortization) are subtracted. Payment request submitted to pay vendor/individual promptly; used for utilities, health insurance, staff reimbursements.

Business term used to provide a timeline. NVA financial report with drill down information on the hospital’s facility and administration costs such as rent, repairs, marketing, and office supplies. NVA Initiative to drive compliance and returning client visits; hospital teams have a 7-day window to create the patient's next visit on the AVImark

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FAME FDD

Future Appointments, MORC, and Email Financial Due Diligence

FMLA

Family Medical Leave Act

FTE

Full-time equivalent employee Hospital Leadership Team Hospital Manager

HLT HM HR

calendar and mark as "future appointment" for the appointment to count as a FA. Only credited if original appointment was "kept". Refers to NVA initiatives Future Appointments, MORC and Email collection rates. Offers to purchase an asset are usually dependent on the results of due diligence analysis. This includes reviewing all financial records plus anything else deemed material to the sale. Sellers could also perform a due diligence analysis on the buyer. Items that may be considered are the buyer's ability to purchase, as well as other items that would affect the purchased entity or the seller after the sale has been completed. Due diligence is a way of preventing unnecessary harm to either party involved in a transaction. Legal Act entitling employees of covered employers to take unpaid, jobprotected leave for specified family and medical reasons with continuation of group health insurance coverage under the same terms and conditions as if the employee had not taken leave. http://www.dol.gov/whd/fmla/ A permanent employee who works an average of 30 or more hours per week. Local hospital team including the HM and MDVM. Part of HLT in cooperation with MDVM.

People & Talent Services General Manager

Support Center department overseeing and assisting in all matters related to people and talent services and total rewards (benefits). Pet Resorts Leadership Team.

IOV

Indication of Value

Information Technology

IPS JV

Invoice Processing System Joint-Venture

The worth of a subject property as shown in the three basic approaches to value: recent sales of comparable properties, cost less accrued depreciation plus land value, and capitalization of annual net operating income. Refers to the team who assists and oversees the application of computers and telecommunications equipment to store, retrieve, transmit and manipulate data. Used to process payments for invoices received.

Last Year

LOA

Leave of Absence

LOI

Letter of Intent

MAB

Medical Advisory Board

A business arrangement or partial sale in which two or more parties agree to pool their resources for the purpose of accomplishing a specific task/business. In a joint venture (JV), each of the participants is responsible for profits, losses and costs associated with it. Reporting term used to represent financial data from the prior fiscal Year. People services term referring to period that employee does not work but their job remains held. See Employee handbook and FMLA. Used in most major business transactions, a letter of intent (LOI) outlines the terms of a deal and serves as an “agreement to agree” between two parties. NVA’s group of DVMs selected to provide medical information and support to the community.

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MDVM MORC MRO MTD

Managing Doctor of Veterinary Medicine Monthly Overdue Reminder Calls Manager of Regional Operations Month to Date

NPS

Net Promoter Score

NVA

National Veterinary Associates PAW Plans

PAW Plans

Part of HLT in cooperation with Hospital Manager. NVA initiative to improve compliance; MORC is a process of monthly calls made at the hospital level or by the Call Center to reach clients whose pets have overdue services as recorded in AVImark. Position that oversees HMs in their regional division. Reports to Division Leader. Reporting term used to represent financial data from the current month up to today--includes monthly only fiscal data. The Net Promoter Score is an index ranging from -100 to 100 that measures the willingness of customers to recommend a company’s products or services to others. The company you work with 

Practice Information Management System Professional Service Revenue Prior Year

NVA wellness plans; created by the HLT along with the NVA PAW team to drive compliance, client visits, revenue growth. Refers to software used by medical offices/hospitals that is designed to deal with day-to-day operations, store client information, medical records, accept and process financial data and payments and report on these various tasks. At NVA, we primarily use AVImark. Revenue or monies gained from DVM services (i.e. Exams, dentistry, vaccines, ear cleanings, etc.). Reporting term used to represent financial data from the prior fiscal Year.

Quickbase

Tool used for Reporting and Invoice Processing.

Resort Manager

Pet Resorts Leadership Team.

R&S

Revenue and Supplies Return on Investment Same Store

NVA financial report with drill down information on the hospital's cost of supplies and the revenue associated with those supplies. Profit from an investment as a percentage of the amount invested.

SOO

Statement of Operations

SSS

Service Satisfaction Survey

Store

The statement of operations summarizes a company's revenues and expenses over the entire reporting period. It includes revenue, expenses, labor, facility and admin costs and your EBITDA. Survey used to discover whether or not the company's customers are happy or satisfied with the products or services received from the them. At NVA this is the survey used to assess seller satisfaction regarding the sale, acquisition, and on-boarding process. Third party who buys property/real estate when a seller owns the property but no longer wants to retain it upon hospital sale to NVA. Store buys the physical property from the seller then NVA pays rent to Store.

PIMS or PMS

PSR

ROI SS

Included all locations that have been with NVA for one year or longer.

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Support Center

TTM

Trailing Twelve Months

VP and VPO

Vice President; Vice President of Operations Year to Date

YTD

NVA’s Support Center located in Agoura Hills, CA. The Support Center is where many of our Support Teams are located; Marketing, Accounts Payable, Payroll, Information Technologies, The timeframe of the past 12 months used for reporting financial figures. A company's trailing 12 months is a representation of its financial performance for a 12-month period, but typically not at its fiscal year end. NVA Regional role divided into West, Heartland, South, and East; VPs oversee all Divisional teams in their Region. Reporting term used to represent financial data from the current fiscal year up to today--includes entire fiscal year data.

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Transition Post Close Hospital Responsibilities  Cancel prior POS (Point of Sale) service if switching to Elavon terminals permanently o Keep your service if using Elavon terminals temporarily  Cancel any automatic payments that are set up on business credit cards or the old bank account(s), request to be invoiced  Cancel previous health insurance to coincide with new health insurance start date  Cancel Insurance for General, Liability, Property, Building (may keep if landlord), and Professional Liability once you have received copies of Certificate of Insurances from Michelle Lundy  Hospital owned vehicles (if applicable) – Cancel car insurance once you have proof of new insurance (Michelle Lundy) and send vehicle titles via FedEx to Support Center  Move to NVA VIN and cancel old VIN accounts (as long as it makes fiscal sense to do so)  Update radiology certificates (per State requirements)  Confirm ACH Rent payments have been set up and have been received  Telecommunications – Transfer Cable, Phone, Internet to NVA  Care Credit – Reprogram once your new MerchantID is received  Vendor Accounts – update all computer terminals once new account numbers are received  DVM DEA Licenses – update  401k transfers (if applicable) – complete once you elect to participate in our plan

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NVA Managers Checklist

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People & Talent Services

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Your People Services Team

Mo Sullivan, People Partner • Equine, West and Northwest Group o Maureen.Sullivan@nva.com o 805-367-5125 Glenn DeShields, Human Resources Business Partner • Great Plains Group and Greater South Division o Glenn.DeShields@nva.com o 609-707-8427 Rita Rossi-Martin, Human Resources Business Partner • Central Group and Suncoast, Central & N. Florida, and Atlantic Coast Divisions o Rita.Rossi-Martin@nva.com o 724-601-3334 Joni Scimone, Human Resources Business Partner • East Central and East Groups and Carolinas Division o Joni.Scimone@nva.com o 805-657-3182

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Hospital Policies & Handbook Upon joining NVA your Hospital Specific policies will remain intact. You may already have a handbook or manual which will continue to be used in your hospital. After joining NVA, you will work with our HR team to review the handbook and ensure it is state and federally compliant. Should there be areas of your handbook/manual that you wish to update or amend at any point please let your HR Specialist know. Examples of a Hospital Handbook can be located on NVAShare.

Hospital Policy Detail •

• • • • • • •

Vacation, Sick Leave, or PTO – Will be assessed and matched to NVA Policy that best aligns with your current policy or slightly improves employee benefits. This will happen right away and be implemented when you join NVA. We will work with you to determine the best approach and provide you with policy language that you can use going forward that explains the new vacation, sick leave, or PTO policy and legally aligns with your state. Uniforms - same as hospital currently offers Pet benefits - same as hospital currently offers Bonuses - NVA offers a quarterly bonus program to hospital staff; to be explained further in the Benefits section Work schedules will continue to be set by the Hospital Manager and is not dictated by NVA except to ensure that labor laws are being followed Employees maintain current pay rates upon joining NVA Lunch, rest, break periods - same as hospital currently offers which should uphold state law MDVM and HM may retain current hospital schedule and structure on employee reviews and salary increases; resources are available if they wish to restructure this process; No set companywide policy (see Performance Reviews & Raises for more guidance)

Other Items • •

Any community or charity programs you currently participate in can and should remain in place (i.e. if you donate to the local fun run please feel free to continue) If your hospital has an "Angel Fund" or charity pot for use on special cases, please feel free to keep and operate as usual

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Employee Files You will continue to keep your employee files on-site at the hospital (no need to send to NVA). Please keep this sensitive information in a secure, locked place that only Hospital Leaders have access to. We recommend keeping two files for each employee and another binder for all I-9s separated as follows: Employee files: 1. Basic employment data file including: Application, resume, W-4, Direct deposit information, emergency contact information, performance reviews, disciplinary actions, training, OSHA, and other compliance documents 2. Confidential file including: Health and medical information, payroll data I-9 Binder: We recommend keeping all of your I-9s in a separate binder from employee files. These should be organized by hire date/year. This way should an IRS audit ever occur, they will only need to look at this binder rather than through all employee data.

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Recruiting & Job Descriptions Recruitment

NVA has a recruiting team to help you find great-fit DVMs, hospital leaders, and veterinary technicians. At this time NVA's recruiting does not have the bandwidth to provide direct support with recruiting other support staff positions and this should continue to be done locally by you at the hospital. • •

•

Hospital Leaders should inform their TM (later Division Leader (DL)) as soon as possible if you learn of an ADVM, MDVM, HM, or technician leaving. While the Hospital Leaders will be heavily involved in the search requirements and decisionmaking process, NVA's recruiting team will do much of the legwork for you. Your Division Leaders will also be involved in the timeline, process and final say of hiring Doctors or management For new positions, your TM (or Division Leader) need to be looped in. You should have reasonable ROI to warrant creating the new position and get approval before starting process.

Recruiting process: 1. Inform your TM or Division team of the need to fill/add a DVM or Management role 2. Your TM or Division team will inform NVA's recruiting team 3. NVA's recruiting team will reach out to you to complete & return a hiring packet (next page) 4. Once returned, recruiting will schedule a "Culture Call" to learn more about what you are seeking in a candidate as well as more about your hospital 5. Job is posted by NVA recruiters on Avature 6. NVA recruiters screen candidates and pass along any who meet requirements to Hospital Leaders 7. Hospital Leaders interview and make a decision a. When hiring a DVM a compensation package needs to be discussed with your Division team and then an employment agreement drafted by NVA's legal team b. When hiring a Hospital Manager or Managing DVM, the Division team will be heavily involved in the decision-making process

Interviews • •

NVA does not have a specific structure on how you conduct interviews during your hiring process, except…for working interviews. For working interviews ~ During an on-site interview, applicants should not be asked to perform any duties which regular staff would be paid for (i.e. drawing blood, restraint, answering the phone) as this poses a liability issue. o Asking the applicant how they would have responded in a given circumstance is the best way to test their skills and knowledge o For DVM applicants, working interviews can be held as long as the applicant is provided with an agreeable hourly rate for the time they are performing the working interview

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Job Descriptions •

Hospital Manager, Associate DVM and Managing DVM descriptions are formal to NVA and loosely followed. We understand that each hospital has a unique culture and leadership relationship therefore outline these roles and expectations but wish for the hospital to flex them as they pertain to your leadership team while ensuring the duties are performed. o For example, marketing is included in the Hospital Manager job description but the Managing DVM may have a special interest in marketing and therefore takes on that responsibility o Additionally, ordering/receiving and accounts payable are listed in the Hospital Manager job description however the Manager may delegate this duty to someone else on the team.

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Avature Hiring Hub

NVA Recruitment Resources Website: https://nva.avature.net/hiringhub What is Avature? Avature is NVA's Recruiting Platform. Avature offers two platforms; Recruiter Supported Hiring and Self-Service Hiring. Hiring Manager have access to both platforms through the Hiring Hub. Recruiter Supported Hiring: Recruiters use this platform to manage their sourcing activities, organize their requisitions, and keep track of candidates. The platform also gives Hiring Managers access to a Hiring Hub that allows you to provide feedback on candidates in a "task center" format. Self Service Hiring: Self Service will allow sites to post their own roles (CSR, Groomer, Technician, Pet Assistant, etc.) to the portal; any job posted here will be automatically featured on the NVA job board, as well as, scraped to aggregator boards like LinkedIn and Indeed. It also allows the hiring manager to view applicants and manage the process in a simplified way. Use of Self Service Hiring currently incurs no cost for the site and is optional, although we encourage usage so that you can post your jobs on the NVA job board, have them shared on major job boards like Indeed & LinkedIn, and offer your candidates an easy online application process that you can manage digitally. If you anticipate utilizing our Technician Recruiting team for candidate sharing, job optimization, etc., use of the Self-Service Hiring Module will be required.

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Ready to Hire? Once you have found a candidate you are ready to provide an offer of employment to there are a few steps and paperwork to complete. Feel free to use the hiring checklist below as a guide. Required documents by law are noted and can be found on the following pages.

Hiring Checklist Name:_____________________________________________

Hire Date: __________________

Job Title: __________________________________________ Employee status (circle one): RFT / TFT / RPT / TPT • • • • • • • • • • • • • • • •

Employment application Offer Letter / Employment Contract Drug Screening through Pre-Employ* Background Screening through Pre-Employ* I-9 Form and/or E-Verify (required) E-verify states: (AL, AZ, MS, NC, SC, GA, UT, TN) W-4 Form (required) Direct Deposit Form At-will Arbitration agreement Health insurance brochure (see benefit section) 401k information (see benefit section) Any state specific new employee notification documents (varies by state) Confidentiality Agreement Acknowledgement Policy against Harassment and Discrimination Employee Handbook Acknowledgement Emergency Contact Form

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*Recommend for all new hires (hired after acquisition) but not required

Hiring Sample Hospital Staff Offer Letter:

HOSPITAL NAME/LOGO TODAY’S DATE CANDIDATE NAME ADDRESS NAME We are delighted to extend to you this offer of employment as POSITION TITLE reporting to HIRING MANAGER’S NAME. Verbal and written acceptance of this offer of employment must be received within one week from the date of the letter or the offer becomes void. Any offer extended is contingent upon the satisfactory results of certain employment information verifications, which may include education, employment, criminal background, professional licenses and/or credit checks. The purpose of this letter is to confirm the terms of this employment offer including reporting relationships, compensation, and employee benefits (if applicable). The terms of your employment are as follows: Start Date: Compensation: Benefits: Schedule: You agree the proprietary and confidential information, such as client names and addresses, and preferences are and shall remain trade secrets of the hospital, and you will not be able to use any of this proprietary or confidential information in any other employment, or veterinary practice. Pursuant to the Immigration and Nationality Act, we are required to verify the identity and employment eligibility of all new hires. In order to comply with this legal obligation, we must complete an Employment Eligibility Verification Form I-9 within three days of hire. We have enclosed a Form I-9 for your review. Please note that you will need to provide either (i) one document from “list A” or (ii) one document from “list B” and one document from “List C” of the form. Acceptance of Employment You understand that your employment with HOSPITAL NAME is an employment “at will” and this arrangement may be terminated at any time by either party. Please indicate your acceptance of the terms of our agreement contained in this letter, by signing in the space indicated below, and return the enclosed copy of this letter to me. If you have questions do not hesitate to call. Sincerely, _________________________________________________________________________________________________________ HIRING MANAGER NAME HOSPITAL NAME DATE ACCEPTED: ________________________

NAME _______________________________________________________

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Pre-Employ Pre-Employ manages the background and drug screening programs for all NVA hospitals. NVA recommends that you do pre-employment drug and background screens on all new applicants (please do not screen employees already working at the hospital when you joined NVA). Shortly after you join NVA, you will receive an email from Pre-Employ with your login information and training information. For the training, you will need to be at a computer with internet access. Andrea Johns with Pre-Employ will email and End User Certificate Form. Once completed, return it to Andrea at ajohns@pre-employ.com. Prior to requesting a screening on an applicant, please have them complete the background release form also on the following pages. The cost per applicant for both background and drug screenings can be found below; we recommend only testing applicants you intend to hire. You will need an applicant's social security number and permission (by filling out the attached disclosure authorization form) to run the screenings so advise the candidate that their employment offer is contingent upon their passing the background and drug screenings (if applicable). Should a candidate come back positive or with a background hit and you are interested in hiring, please contact your HR Specialist to discuss further. Cost: Screening Package - $33.95 Includes: SSN Address Locator County Criminal US Criminal National Sex Offender Previous Employment Verifications Office of Foreign Assets Control Anti-Terrorist Drug Test A la Carte - $23.95 Education or Professional License Verification A la Carte - $6.25

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Pre-Employ Background Screen Process  To start, complete the CDQ (Client Default Questionnaire) that you will be emailed and return it via email to Andrea Johns at ajohns@pre-employ.com.  Your account will be created and you will receive a Welcome Letter with Login instructions.  To screen an applicant, the Disclosure and Authorization Forms need to be filled out for every background check.  All Pre-Employ documents are available on NVAShare in the document library. o The Disclosure and Authorization for FRCA is completed when submitting a request for criminal backgrounds and credit checks. o The FCRA Notice is informational only. It is something to give a candidate when filling out the Disclosure and Authorization form. o The Blank Release Form only needs to be completed when a provider for the education or employment verification requires a wet/authentic signature from a candidate.  Pre-Employ is a preferred vendor, so billing is sent directly to the Support Center.  You/Hospital will receive a copy of the invoice so that you are able to track and monitor charges, and to inquire about any discrepancies. Please do not pay Pre-Employ invoices at the local level.  Preferred testing laboratories are LabCorp and Quest. The team at Pre-Employ will locate a testing site for you based on the submitted Client Default Questionnaire.  There are many testing locations across the nation that are able to provide excellent service with typically less than a 48-hour turnaround.  You are welcome to use a different testing site – just be aware that the hospital is responsible for any expenses or fees as with Pre-Employ.  Background checks are also offered a la carte. You may select a standard package, or whatever background check is needed for a specific situation or position.  Education verification should only be used for positions that require a certification or a degree. For support with Pre-Employ, please reach out to: For technical support, Andrea Johns can be reached at 800-300-1821 or by email at ajohns@preemploy.com or you may reach out to Rapid Response (Client Service) at 800-300-1821 x139 or rapidresponse@pre-employ.com.

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Direct Deposit Form

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ADP (PETS) – How to access your paystubs The employee should register for MyADP, the employee portal. Once registered, the employee will have access to their paystubs. https://my.adp.com •

The team member can obtain detailed instructions on how to register and the registration passcode on the NVA training site. o They will choose the Team Member link. o NVA has included a video on registration and they can also download the Quick Reference Guide.  https://www.nvapetstraining.com/  Password is NVAPETS

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Performance Reviews & Raises Hospital Leaders should continue with the current hospital schedule and structure on employee reviews and salary increases. NVA has no set companywide policy on what standard hourly wages or raises should be but can provide guidance and business intelligence--please reach out to your Transition Manager or Division Leader for guidance. Other review and disciplinary action resources are available through NVAShare if you wish to utilize them and can be found here: https://nvashare.com/HR/Shared%20Documents/Forms/AllItems.aspx.

Helpful Information • • • • • • • •

NVA recommends conducting annual reviews for all employees NVA asks that Hospital Leaders document reviews, performance, write-ups, and discipline in each employee's personnel file Upon joining NVA, employees' compensation does not change Salary decisions are made by local hospital leadership with Divisional Leadership input; Hospital and Employee performance, tenure and merit should be taken into account Collaborative and planned process to account for raises during annual hospital budgeting process performed by local leadership (MDVM and HM) There is no “cap” in staff raises/hourly wages, and it is up to local leadership to take cost of living into account MDVM and HM reviews and HR processes are overseen by NVA Divisional Leadership Staff (technician, boarding, reception, etc.) changes are determined by the local hospital leadership

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Termination / Separation Just as hiring, reviews and raises are overseen by local leadership, so is terminating, and separating with employees. You have NVA's support through the process and as a resource. For any employees you are looking to terminate, please contact your HR Business Partner prior to so they may assist with the proper steps. Check when the final paycheck is due according to your local state law. For California, Colorado, Massachusetts, Minnesota, Missouri, and Nevada, final pay is due at the time of termination. Many other states have laws that require final paychecks for terminated employees be issued within 24, 48, or 72 hours and we encourage you to familiarize yourselves with all applicable state laws for your hospital.

Separation Checklist All Separations • • • • • • •

FINAL PAY is due at time of termination in CALIFORNIA & ALASKA & MASSACHUSETTS COMPANY ASSETS (keys, IDs, etc.) should be collected prior to departure EMAIL/SYSTEMS: If employee was in a secure position (with an nvanet.com or nva.com email) send email notification to offboard@nvanet.com so all systems and access can be turned off SEPARATION FORM: Complete and submit to liza.parodi@equifax.com make sure to include resignation/write-ups/disciplinary notes STATE SPECIFIC FORMS: *If applicable, check ‘Termination’ folder in NVA Share (AZ, CA, CT, GA, IA, IL, LA, MA, MI, NJ, NV, NY, PA, TN) PAYROLL: Be sure to change their status to “terminated” in ADP – be sure to include last day of employment, reason for leaving and if they’re eligible for rehire or not. COBRA: COBRA paperwork is automatic for NVA medical participating locations and the notice is automatically sent to the eligible employee once you set their status to ‘Terminated’ in ADP. (If your location is not on the NVA consolidated plan, please follow your COBRA process typically the broker initiates the COBRA notice).

Resignations • • •

Receive the resignation in writing (email is fine) Notice is usually two (2) weeks. If not enough notice is given, do not withhold pay Make arrangements for their departure o Communicate with staff and make scheduling arrangements o Initiate recruiting efforts to find a replacement (if applicable) o Exit interview (if appropriate)

Terminations • • •

Final pay is due at time of Termination in CA, AK & MA, ensure this is arranged Have a witness, if necessary (work with the Division Leader, HR, MDVM) If terminating for an ongoing performance issue, o Will the employee be surprised? Do we have written corrective action? 55 | P a g e

Separation Process

1. Complete “Separation Form” (attached in following pages) o For CA Hospitals, also complete a “Change in Relationship Form” found on NVAShare & give employee a copy of it, along with a copy of the “CA for Your benefit” booklet found here https://share.nvanet.com/HR/Shared%20Documents/Terminations%20(OffBoarding)/CA%20Off-Boarding%20Documents/CA%20For%20Your%20Benefit.pdf, at time of separation. 2. Send the completed “Separation Form,” along with any other supporting documentation, such as a resignation email, corrective action(s), (CA) “Change in Relationship Form,” to our Equifax partner and the HR Group email (HR@nvanet.com) at the same time: Liza Parodi liza.parodi@equifax.com Fax (866) 290-6804 Phone (314) 214-7691 3. For all employees with an nva.com email address, or access to NVA proprietary systems, such as MDVM, DVM, HM, please send an email to offboard@nvanet.com so that all systems and access can be disabled. 4. Terminate the employee in ADP--see next page for step by step 5. If your hospital does not participate in NVA benefits, notify your medical broker of the separation, and ensure that they mail the employee their COBRA paperwork. *COBRA paperwork is automatic for NVA medical participating hospitals.

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20316

EMPLOYEE SEPARATION FORM FAX/MAIL IMMEDIATELY TO TALX UCeXpress

UC2B-Rev. 4/01

P.O. Box 283, St. Louis, MO 63166-0283

Attn: Liza Parodi Tel: (314) 214-7691 Fax: (866) 290-6804 Email: liza.parodi@equifax.com Employee Name

_____________

SOCIAL SECURITY NO.________________________________

Company Name ______________________________________________________________________________________State Employed __________________________ First Day Last Day Hourly Worked Worked Rate of Pay$ ___________________ Job Title ______________________________ Completed By TALX INHOUSE #

Phone

_______________E-Mail___________________________________Date_______________

__NG27_________________________ REASON FOR SEPARATION

*******************************QUIT*****************************

( ) 0100 - Did not return, no notice/reason given ( ) 0300 - No reason given ( ) 0410 - Mutual agreement (not protestable) ( ) 0500 - Quit during temporary assignment, no notice ( ) 0800 - Failed to return from leave of absence ( ) 0900 - Refused offer of work (explain) ( ) 1100 - Three days unreported absence (give dates) ( ) 1200 - Accepted better job ( ) 1400 - Accepted another job ( ) 1410 - Accepted another job - own business ( ) 1420 - Accepted another job - military ( ) 1500 - To leave area ( ) 1600 - Personal ( ) 1610 - Personal - marriage ( ) 1630 - Personal - school hours conflict ( ) 1700 - Transportation Problem ( ) 1800 - Babysitter Problem ( ) 1900 - Due to medical reasons ( ) 2100 - Dissatisfied ( ) 2110 - Dissatisfied - work hours ( ) 2120 - Dissatisfied - salary ( ) 2130 - Dissatisfied - working conditions ( ) 2140 - Dissatisfied - performance review ( ) 2160 - Dissatisfied - career opportunities ( ) 2170 - Dissatisfied - company policies ( ) 2180 - Dissatisfied - co-workers ( ) 2190 - Dissatisfied - supervisor ( ) 2200 - Walked off job ( ) 2300 - To stay at home ( ) 2400 - Assignment completed, failed to contact for new assignment ( ) 2500 - Attend school ( ) 2600 - Quit, Other (explain) **********************RETIREMENT************************ ( ) 1000 - Voluntary (if pension, give amount) ( ) 1030 - Disability - job related ( ) 1040 - Disability - not job related ( ) 7400 - Involuntary (if pension, give amount) ****LEAVE OF ABSENCE - Must give return date***** ( ) 6300 - Family & Medical Leave Act - 1993 ( ) 7200 - Leave of absence (explain) ( ) 7300 - Military leave

**********DISCHARGE - Must give details*********** ( ) 3200 - Using intoxicant on the job ( ) 3300 - Intoxicated on the job ( ) 3700 - Excessive tardiness (give dates) ( ) 3900 - Left work without permission ( ) 4000 - Excessive absences (give dates) ( ) 4100 - Excessive unreported absences (dates) ( ) 4200 - Excessive absences & tardiness (dates) ( ) 4300 - Fighting on company property ( ) 4400 - Refused to perform job duties ( ) 4500 - Misuse of equipment ( ) 4600 - Destruction of company property (give property value) ( ) 4800 - Violation of company policy ( ) 4900 - Insubordination ( ) 5000 - Sleeping on job ( ) 5100 - Inability to perform job (not protestable) ( ) 5300 - Unauthorized removal of company property ( ) 5400 - Violation of safety rules ( ) 5500 - Cash shortages ( ) 5700 - Improper conduct ( ) 5800 - Falsification ( ) 5900 - Failed to report to work (give dates) ( ) 5200 - Discharge, Other (explain) ******************LABOR DISPUTE******************* ( ) 8300 - Involved in labor dispute ( ) 8310 - Member of striking union ( ) 8320 - Company lockout ( ) 8400 - Refused to cross picket lines ******************MISCELLANEOUS******************* ( ) 6600 - Transfer to new location ( ) 6900 - Disciplinary action - suspension ( ) 8000 - Returned to work (give date) ( ) 8100 - Refused new job offer or recall (Give specific details of offer) ( ) 8500 - Deceased ( ) 8600 - Not available for work (explain) ( ) 9100 - No protest per employer ( ) 9200 - Independent contractor ( ) 9300 - Records not available ( ) 9800 - On worker’s compensation

**************************LACK OF WORK*************************** ( ) 7000 - Vacation/holiday pay given (give amount) ( ) 7600 - Lack of work ( ) 7610 - Temporary lack of work (give return date) ( ) 7620 - Job eliminated ( ) 7630 - Seasonal employment ( ) 7640 - Location closed ( ) 8700 - Assignment completed ( ) 8900 - Vacation shutdown (give pay & return date) ************************************************************************ Was leave of absence available? YES /NO Was leave requested?

YES / NO

Was leave granted?

YES / NO

Eligible for rehire?

YES / NO

*************************************************************************I have read, understand and acknowledge receipt of a copy of this document. ******************JOB REFUSAL**************************** Start Date of the assignment? ______________________ Estimate End Date of the assignment? ___________________________________________ When was job offer made and by whom? (Name and title) ________________________________ On what date was the offer of work refused? ______________________________________________ How was the job offered to him/her? (Telephone, letter, in person, etc.). ________________________________________________ When was the assignment to begin and how long it was scheduled to last? ___________________________________________ Rate of pay and shift for the work offered?___________________________________________ What position offered, and has he/she performed in the capacity, or during this shift, prior (if so when)? ___________________________________________________ If he/she had accepted the assignment, where would the work have been performed, and what is the proximity to his/her residence? (Company name, location)?___________________________________________ What was the reason the claimant gave for refusing the work offer?______________________________________________

Employee Signature

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Date ____________________________ Employee refused to sign ( ) Employee unavailable for signature, copy mailed (

Supervisor/Manager Signature

)

(Date)

Phone number REMUNERATION PAID UPON OR AFTER SEPARATION Holiday Pay $__________________________________________________________ Allocated _______________ to ______________ Date Paid _____________________

Vacation Pay $________________________________________________________ Allocated _______________ to ______________ Date Paid ____________________

Severance Pay $________________________________________________________ Allocated _______________ to _____________ Date Paid ______________________

Wages in Lieu Of Notices $______________________________________________ Allocated _______________ to _____________ Date Paid _____________________

Pension $______________________________ Paid: Check One: ( ) Financed Wholly By Employer

(

) Lump Sum ( ) Monthly ( ) Financed In Part By Employer - Over 50%

(

) Financed In Part By Employer - Under 50%

REMARKS (Attach additional sheets, if needed)

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INSTRUCTIONS This form is to provide information to TALX UCeXpress, which will be used in determining eligibility for unemployment benefits. It is important that each portion of the form be read and filled in when applicable. In some instances, it is possible to receive charges and not yet receive a claim to protest. Prompt completion of this form will enable us to detect such charges. If you have any difficulty completing this form, please contact your UCeXpress representative who will be happy to provide you with assistance. In the first section on the far left side of the form, specific information relating to various areas of the employee's employment history is required. Be sure to properly indicate the actual physical last day worked and verify the SOCIAL SECURITY NO. (number) to insure correct processing of future claims. There is an area within this section that requests remuneration information. A claimant's eligibility may be affected by things other than the reason for separation. Please give detailed information in this portion when applicable. In the lower part of this section be sure to identify your company name and location, as well as provide a phone number where additional information can be obtained. The middle sections on this form pertain to the REASON FOR SEPARATION. When completing this section, please use the following guidelines. QUITS: Check the most descriptive reason and offer any comments in the REMARKS section. Comments should at least include answers to these questions: Did the employee cite a problem he was having or a specific dislike? Did employee give you an opportunity to explain or correct the problem? Obtain a signed resignation statement when possible and attach a copy to this form. DISCHARGES: It is important that the actual last incident be checked as the reason for discharge. Do not check more than one reason, but rather indicate those contributing factors in the REMARKS section. If there is no reason listed to cover the reason for termination, check "other" and explain in the REMARKS section. Comments should include the answers to these questions: Was the employee warned (if so, be sure to provide dates)? Did employee admit fault; was a grievance filed? How was the employee made aware of the rule (s) broken? RETIREMENT: It is important that you properly classify the retirement as voluntary or involuntary. It is voluntary only if continuous work was available. If the individual is to receive pension payments, please provide the amount and information as requested in the section on the far left side of this form titled "Remuneration Paid Upon Or After Separation." LACK OF WORK: This includes plant closings, reductions in force, hires for temporary work only, or any situation in which work is no longer available. If the individual is to receive additional pay upon or after separation, please provide the information in the section on the far left side of this form titled "Remuneration Paid Upon Or After Separation." LEAVE OF ABSENCE: Indicate the type of leave granted and attach a copy of the signed request to this form. It is important you provide an anticipated return to work date. If the employee fails to return from the leave, you must submit another notice advising that he is now separated. LABOR DISPUTE: Please notify TALX UCeXpress prior to a potential strike or lockout, so state strike-notification procedures and individuals' eligibility to collect benefits may be reviewed. If the claimant worked in one of the states listed in the far right section of this form, please answer the corresponding questions.

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Family Medical Leave Act (FMLA) As an NVA hospital you most likely fall into the requirements to provide Family Medical Leave Act (FMLA) for your employees. FMLA eligible employees are entitled to take up to 12 weeks of unpaid, job protected leave. Protected leave to eligible employees for the following reasons: • • • •

For incapacity due to pregnancy, prenatal medical care or childbirth; To care for the employee's child after birth, or placement for adoption or foster care; To care for the employee's spouse, son or daughter, or parent, who has a serious health condition; or For a serious health condition that makes the employee unable to perform the employee's job.

Employees are eligible for FMLA leave if they have: • • •

Been employed with covered company for at least a year Worked at least 1,250 hours during the previous year. Work at a location with at least 50 employees within a 75-mile radius.

The following page is a quick info sheet that talks about what FMLA is. If you ever have leave question or need help with paperwork please send an e-mail to Benefits@nva.com.

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Employee Assistance Program & The Network Employee Assistance Program

NVA provides an Employee Assistance Program (EA) 24 hours a day 7 days a week at no cost through Lincoln Financial Group to support individuals on your team. Support available ranges from substance abuse and grief counseling to legal and financial concern coaching. Please see the following page for more details.

The Network

Hospitals will receive a poster for The Network to post in your staff break room. This is an anonymous 3rd party hotline available for anyone to call with employment related concerns. This line is available 24/7 by calling: 877-888-0002 or reporting online at www.nvaonline.ethicspoint.com.

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Payroll

Upon joining NVA you will transition to our online payroll system through ADP as well as sync with our payroll calendar. The calendar can be found on the next page. Below are some key points for you to know: PETS@nva.com You/Hospital Manager are in charge of your Hospital's payroll being completed! •

Prior to joining NVA, you will have a call with Evan Olson where you’ll discuss your employee census to ensure that it’s complete and accurate as well as 401(k) gross-ups applied (if applicable), federal/state/local tax setup, discuss advances (if needed) and ensure Employment Agreements (EAs) are in place

• • • •

NVA pays on bi-weekly periods giving you 26 pay periods per year Payroll weeks are from Sunday at 12:00am through Saturday 11:59pm each week Hospital Managers must enter hours/data is entered by end of day on the Monday following the period end Pay days are Fridays o Direct deposit typically hits at 12:01AM o Live checks and pay stubs (for direct deposits) typically arrive the Thursday prior to pay day via FedEx Direct deposit is optional for all employees (form in accounting guide) o Everyone's 1st check from NVA will be live; 2nd period will start direct deposit if opted for ADP is our online payroll system o Website: o Note: access will not be available until training day Your 1st payroll with NVA: Please refer to the onboarding timeline--Evan will contact you after close to confirm the census details; the census data is loaded into ADP; a ADP Representative will work on the 1st payroll with you and train you on the 2nd payroll ADP contact: The following states will have separate payroll accounts for DVMs and support staff:

• •

•

• •

o o o o o o o o o o o o o o o o •

Alabama Arkansas Iowa Idaho Kansas Louisiana Massachusetts Minnesota Michigan North Carolina New Hampshire New Jersey New York Oregon Texas Washington

After the first payroll any new employees or changes to employee information will be completed by the Hospital Manager. Reach out with any questions however!

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2021 Payroll Schedule

* All payroll is due to ADP no later than Monday following the payroll period.

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Overtime Laws by State – July 2019 * We want to ensure that we are paying our non-exempt (“hourly”) employees correctly and part of that means overtime. In most states, overtime is required for any hours that are worked over 40 in one week, except for in: State

Overtime (OT) Rule

Special Notes

Alaska

OT required for 8+ hours in a day OR 40 hours in a week. OT required for 8+ hours in a day OR 40 hours in a week.

Voluntary flexible work plan must officially be in place to be exempt from these OT rules. Double time to be paid for any hours worked over 12 in one day.

7th day: 1st 8 hours at 1.5, then double time.

Official Alternative Workweek must be on file with the DLSE to be exempt from these OT rules.

California

Colorado

Nevada

OT required for 12 hours per workday OR 12 consecutive hours without regard to the starting and ending time of the workday OR 40 hours in one week. OT required for 8+ in a day OR 40 in a week.

If your state is not referred to above, that means that your state only requires that you pay overtime if an employee has worked more than 40 hours in one week. Overtime is payable at 1.5 times an employee’s regularly hourly rate. For example, if someone makes $10.00 per hour, their overtime rate would be $15.00 per hour. Special Note: While our pay periods are bi-weekly and cover 80 hours in a pay period, you must pay overtime based on what an employee works in one week – not per pay period. Here are some helpful examples (assuming your location is not in a state listed above). Employee # 1 – Works 35 hours in 1st week and 45 hours in 2nd week of the pay period for a total of 80 hours for both weeks. The employee would be paid for 75 hours at the regular rate and 5 hours at their overtime rate. Employee # 2 – Works 42 hours in the 1st week and 45 hours in the 2nd week of the pay period for a total of 87 hours for both weeks. They would be paid 80 hours at the regular rate and 7 hours at their overtime rate. Please remember, the FLSA doesn’t require premium pay for daily overtime or premium pay when an employee works on Saturday, Sunday, or a holiday. However, if your Handbook states that team members receive premium pay for those situations, you would want to follow your past precedent and/or your Handbook. *While we do our very best to keep you updated about new employment laws and changes to the minimum wage and overtime laws, it’s always a good idea to stay abreast of these laws in your state. We appreciate your diligence in ensuring that our employees are paid correctly.

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DVM Production

Some of your DVMs may be paid on production. This means they receive compensation as a percent of what they made for the hospital. Whether they are on production pay or not depends on what their Employment Agreement details which was created based off of their pre-NVA compensation process. We will provide you with copies of each DVMs agreement once it is available and, Evan Olson who is our Payroll Manager for Transition Hospitals, will reach out to train you on how to calculate and submit production post-close. This training typically happens via a phone call about 1 month post-close. Some Associate DVMs who are paid production also have a base salary which is guaranteed each pay period--this type of compensation model is called pro sal. Often the Sellers are on production only which means they do not have a base salary and are paid purely off of revenue they bring in for the hospital.

For training/questions please reach out to your Transition Manager or Evan Olson Evan Olson, Payroll Transition Manager Email: Evan.Olson@nva.com Phone: 818-651-6534

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DVM Employment Agreements/Contracts Before your hospital joins NVA we will work with the owner and each DVM to memorialize DVM contracts/agreements. Typically, this means keeping the same benefits and compensation each DVM received prior to NVA and writing those benefits into a common contract with NVA. This will be taken care of ahead of time. After you have joined us, Hospital Managers should keep a copy of DVM agreements in each Doctors employee file to refer to. These agreements will outline their compensation structure (i.e. do they have a base salary only or do they get paid production as well?), vacation time, CE allowances, etc. Most of the time these stay the same as they were before you joined us but on occasion we will increase the amounts so always best to refer to the agreement now in place. If you do not receive copies of these agreements via email within the first month you are with NVA please ask your Transition Manager to send them to you.

Changes to DVM Agreements

NVA's Employment Agreements with the doctors are called "evergreen" meaning they have no end date. This means that DVMs are not hired to work just for 1 year then their "contract us up" if not resigned. In fact, NVA does not re-issue new agreements every year due to the volume of DVMs that work with us. If any of your DVMS would like changes or updates made to their agreements or if new compensation/benefits are provided to them, please first confirm these changes with your Division Leader. Then using the "EA Amendment Form" on the following page, complete the changes requested and email to EARequests@nva.com. EARequests will create the amendment, pass to you and if it looks good to your DVM, ask for that DVMS email to do an electronic signature.

New Agreements for new DVMs

Similar to changing an agreement, if you hire a new DVM, you will want to confirm compensation and benefit details with your Division Leader and Managing DVM first. Once agreed upon, your recruiter will complete an LOI to present to the candidate and once accepted, your recruiter will request the Employment Agreement and pass it on to you and if it looks good to you and your DVM, will ask for that DVMS email to have an electronic signature sent.

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Talent Unleashed Learning Management System Talent Unleased Learning Management System (LMS) is NVA’s learning system. The Hospital Manager and MDVM will receive an email shortly after you join including your login and password information. If you need assistance, you may click the support link and send an email. You are welcome to email LD@nva.com.

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Total Rewards

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Total Rewards (Benefits) NVA is pleased to offer all employees the option to have great benefits! We offer a variety of health insurance plan options, ancillary benefits, and retirement options. And, you have dedicated Benefit Managers to assist with questions or anything you need. These contacts are: •

TransitionsHR@nva.com

Health Insurance Your location can look forward to joining NVA’s group benefits plans the first of the month following the date of acquisition; you will receive support, access and training on how to go through open enrollment o If you have a small group plan upon joining NVA please do not cancel this plan prior to enrolling with NVA; our benefit team and broker will guide you on this • NVA's group health insurance is through United Healthcare or Kaiser in specific states. • NVA contributes a minimum monthly amount of $390 to each full-time employee’s premium. • Health insurance is available to all full-time employees (full time is defined by the Affordable Care Act as 30+hrs/wk on average) o New hires must be provided with enrollment information within 30 days of hire (Hospital Manager does this) • Friendly reminder: make sure to note the Employment status in payroll/ADP as "RFT" for new full-time hires as this pushes their information into Bswift for benefits! • Annual open enrollment starts in late fall for your team members to update their choices; the plan renews each January 1st o Open enrollment is online through a system called BSwift o Every full-time employee must login to opt in or out during open enrollment; Hospital Managers oversee this process at the hospital • Hospital Managers will be shown how to run a deductions report through Bswift to update deductions in payroll • All other administrative needs for health insurance (including COBRA at termination) are handled by NVA *Exceptions may occur for specific locations; if that is your hospital your Transition Manager and Benefits Manager will work with you on specifics. •

Ancillary Plans •

Ancillary options with NVA include: Dental, Vision, Life, Critical Illness, Accident, Short- & Long-term Disability

•

Hospital Managers will receive open enrollment information for ancillary also through the Bswift system o

Payroll deduction reports also apply to these enrollments

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BSwift Online Health Insurance Enrollment System NVA utilizes bswift for our online benefits enrollment and administration system. Here are some quick tips for the bswift enrollment process and utilizing the bswift system. New Hire enrollment notifications Newly eligible employees will be added to the bswift system the Wednesday after they are coded as active and RFT within ADP. Once they are added to bswift, you will receive an email alert letting you know that you have a newly added employee within the bswift system. To see exactly who’s been added, once you’ve logged into bswift you will see an orange Newly Added Employees alert – you can click on this to see who has been added. When offering a newly eligible employee benefits, we ask that you provide them a copy of the benefit brochure as well their username. Instructions are below: NVA Benefits Brochure attachment to provide to your employees  Employee BSwift log-in usernames and passwords for the bswift system. 



To retrieve their Username from bswift, you can log in under your manager credentials: o Search for their name under your Admin > User Admin and type in their name, and then click on their last name

Their Username and SSN are located in their Demographics screen - Username on the right-hand side and last 4 digits for their log-in under their last name on the right.

 Enrollment deadline – Enrollment deadline – Employees will have 30 days from their full-time date of hire to login to bswift and formally elect or waive their benefits. You can contact nvabenefits@gcgfinancial.com directly to extend this by a few days if needed.

Re-setting employee passwords If you need to re-set an employee’s password, just click on the Edit button on the right-hand side of the Login Information Section

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Make sure the Login Enabled is “Yes” and click on the “Reset the user’s password button. Click Save and it is reset back to the last 4 digits of the social security number.

Viewing employee data and printing benefit statements If you need to verify benefits enrollment and provide employees with a Benefits Confirmation Statement, follow the steps above to access the employee’s Demographic Information page. Once you are on the Demographic Information Page, click on the “Benefit Coverages” section listed on the left-hand side of the menu.

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Accessing current benefit and prior enrollment activity Click on the Additional Information under each benefit to see the status of enrollment changes, reason for change, who changed it and when.

Viewing benefits effective as of a certain date – select the date from the calendar drop-down to view benefits in the upper right-hand corner of the benefits coverages page.

To print out a copy – just click the

icon at the top of the page.

Running bi-weekly payroll reports At the top of the bswift screen, click on the Reports tab and select

Scroll down to the bottom where it says Report Dates – This will be the only section that needs to be updated. You will always use the first date of the pay period you’re processing payroll for. You will then click the blue Run button. If you have not received bswift manager training, please contact nvabenefits@gcgfinancial.com.

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NVA Benefits Team Contacts NVA Benefits Team: TransitionsHR@nva.com •

Brittany Rangel – Associate, Total Rewards – Transitions o 818-307-5984

GCG BSwift Benefits Team: NVABenefits@gcgfinancial.com • •

Shannon Lauret, Benefits Technology Account Manager o 847-457-3175 Nelly Cabrera, Client Relations Coordinator o 847-457-3148

Additional resources that will be shared by the GCG Bswift Benefits Team: Benefit Orientation for Location Managers – Overview of your Location Manager responsibilities as acting Benefits Coordinator for your staff. NVA Bswift Admin Training Video – Your resource to navigating Bswift, our online benefits enrollment system and a walk through of your manager access capabilities. Benefits Overview for Hospitals & Resorts – A comprehensive review of NVA’s benefit offerings for you to provide your employees who are eligible to enroll in benefits.

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401(K) NVA provides several retirement options with a 1% match through Empower Retirement: www.retiresmart.com.

Eligibility All employees, regardless of age or number of hours worked, are eligible to enroll in NVA’s Retirement Plan options.

Enrolling Before your eligibility date you can roll funds from another plan into Empower Retirement, but you cannot create your online account access until after your eligibility date below:

Empower Retirement will mail out an Enrollment postcard to employees’ home addresses (on file in ADP) before their eligibility date and our Benefits Team will also email an electronic version of the enrollment materials to Hospital Managers at least one week before the eligibility date. Enrollments and contribution changes are paperless. Employees sign up and start/ change contribution amounts online, upon which NVA's plan administrator will update the deductions in payroll for you.

Rolling Over Funds To rollover funds from an existing retirement account, email 401k@nva.com to request the form. When completed, please email the form to 401k@nva.com to get our plan administrator’s signature. Please send your rollover check to Empower Retirement directly. The check and form can arrive separately. Their address for regular mail is: Mass Mutual/Empower Retirement Services PO Box 219062 Kansas City, MO 64121-9062

For overnight mail: Mass Mutual/Empower Retirement Services 430 W 7th St. Kansas City, MO 64105

Loans

If any of your team members have outstanding retirement loans, please let your Transition Manager know for further support and options.

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401(k) Plan –Empower Retirement Online Enrollment System Eligibility: All NVA employees are eligible to participate in our 401k plan – there are no age or minimum hour

requirements. Initial eligibility dates are as follows and one and employee reaches their initial eligibility date, they can then log in to www.retirementsmart.com and create and account. On or after your hospital's eligibility date, employees may create an account by going to the website www.Retiresmart.com and clicking on “Create Account”. They will answer some identity verification questions, and then create a log in and pin. Empower Retirement will mail each of your team members with information near your eligibility date (but they do not need the paper postcard to enroll).

Payroll Contributions: Participants can log in and set up, change, or stop their 401(k) contributions in the Empower website at any time. Changes in employee elections will be updated by the NVA Benefits team and reflected on team member paychecks within 2 pay cycles.

Rollovers: Team Members wishing to roll over funds from another account can contact Empowers Rollover Specialists at 1-888-526-6905. Loans and Investment Changes: Participants can request loans directly through the Empower website. Participants can also re-allocate their current account balance or designate investment selections going forward at any time.

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NVA Insurance Carrier and Vendor Contact List BenefitAdvantage – NVA Dependent Care FSA employee contact • • • • •

Group # 63600 Phone, Customer Service: 800-686-6829 Fax: 920-339-0038 Email: claims@benadvan.com Address: PO Box 5546, De Pere, WI 54115-5546

COBRA Bswift – NVA Medical, Vision, and Dental Plans •

Phone, Customer Service: 866-365-2413

Lincoln Financial Group – NVA Life, AD&D, Short Term & Long-Term Disability Plans • • • •

Phone, Customer Service: 800-423-2765 STD Policy #: 162405 LTD Policy #: 10220300 Voluntary Life, AD&D Policy #: 400001000-15445

Empower Retirement – NVA 401(k) Plan • • •

Plan #: 86220 Phone, Participant Information Center: 800-743-5274 Website: www.retiresmart.com

MetLaw/Hyatt – NVA Legal & Theft ID Protection Plan • • •

Group Plan #: 990 1443 Phone, Client Service Center: 800-821-6400 Member Portal: www.members.legalplans.com

MetLife – NVA Vision Plan • • •

Group #: 0215683 Phone, Client Service Center: 800-438-6388 Member Portal: www.metlife.com/mybenefits

Optum Bank HSA – • • •

Group #: 744580 Phone, Customer Service: 800-791-9361 Website: www.optumbank.com

United Healthcare – NVA Medical, Dental, Vision, Accident, and Critical Illness • • •

Group #: 0744580 Phone, Member Service: 866-366-4842 Website: www.myuhc.com

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Bonus Opportunity! Site Incentive Plan There are three bonuses that you should be aware of and help your team (and yourself) achieve. 1. Team/Staff Incentive Bonus: Discretionary bonus intended for your support staff (Receptionist, techs, kennel). o Earned by the hospital (collectively as a team) achieving 5% gross revenue growth in a quarter vs. the same quarter prior year. If the 5% growth is achieved, the staff are eligible to receive 7.5% of the difference in growth. o Please see the following document for tiered payout amounts available (based on hospital size). o Teams are eligible to earn this bonus starting in the 1st full quarter with NVA. o Your Divisional Leadership will contact you after the end of each quarter if the bonus is earned with the amount; payout is at the discretion of Hospital Leaders. o A poster will be shipped to you to track earning this bonus with your team if you choose. *NVA's quarters are as follows: Q1: July-September; Q2: October-December; Q3: January-March; Q4: April-June 2. Site Leadership Profit Share Bonus: Intended for the location's Hospital Manager and Managing DVM together. o Earned by achieving EBITDA growth for a 6-month period (January-June and July-December) vs. the same period prior year. It is based off of EBITDA percent with tiered payout. o Hospital Leaders are eligible after the 1st full fiscal year with NVA o Joint-Venture partners are not eligible to receive this bonus but corresponding leaders (HM) are. o Please review the following document for details. 3. Managing DVM Leadership Fee: For MDVMs only (written into their contract unless they are JV partners) o Earned by achieving 10% gross revenue growth of the business in a quarter vs. the same quarter prior year. o NVA will track and calculate this bonus for each location; NVA will communicate the bonus achieved after the completion of each calendar quarter. o JV partners are not eligible for this bonus See the following pages for more details!

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Site Incentive Plan Calendar Year 2021 (January – December 2021) TO: NVA General Practice Site Leaders FROM: Brian Kelly, President and COO, and Sohail Malad, GP Group President Introduction: As in past years, NVA will offer an incentive bonus for the Calendar Year (CY) 2021 periodacross our various businesses. While the structure of the previous plan design will carry forward in this plan, we wanted to memorialize the key elements of the plan for this coming year. Please take a few minutes to familiarize yourself with this plan, and don’t hesitate to reach out to your Division Leader, thefinance team, or me with any questions. Background: NVA believes strongly in providing progressive and compassionate veterinary care, and to achieve this we partner with individual practices that share knowledge to achieve sustainable growth. High-quality veterinary care and strong business performance go hand-in-hand, since neither can exist fora sustained period of time without the other. The intent of the program is to create a financial reward for Site Leadership and staff that is based upon achievement of goals for the controllable financial aspects that have the greatest impact. To accomplishthis, the program has two distinct parts. • •

First, a Team Incentive Bonus will be made available each calendar quarter for staff members based on achieving revenue growth over the prior year. Second, a Site Leadership Profit-Sharing Bonus will be established for Site Leadership based on achieving growth in EBITDA as compared to the prior two years. The details of these two components of the program are highlighted on the following pages.

Delivering high-quality care requires the efforts of many people and strong teamwork. Please share the quarterly Team Incentive Bonus program with your team and invite them to help you achieve your goals. Good luck and best wishes for a high-quality and prosperous new fiscal year!

Brian Kelly President and Chief Operating Officer

Sohail Malad Group President, General Practice

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Team Incentive Bonus Calendar Year 2021 Timing: Quarterly Performance Criteria: Site must achieve growth in revenue of at least 5% compared to the same quarterof the prior year. Seven and one-half percent (7.5%) of the revenue in excess of the 5% growth will be available for pay-out. Participation: This discretionary award is intended for non-management staff and will be determined bySite Management and the applicable Division Leader. Computation and Distribution: Calculations for the discretionary bonus will be done by the Support Center team after the end of each quarter, and the files will be saved in the H drive for Site Managers to review and complete for their teams. Payments will then be made to staff who are chosen to receive thisdiscretionary bonus via direct deposit. Starting this calendar year, funds earned must be fully distributed each quarter. Any unused funds will be forfeited. Cap: The maximum award will be based on differing tiers of revenue attained by the clinic during the previous fiscal year. Tiers will be as follows: • • • • • •

For sites $0-2.99 million in revenue = $5,000 cap per quarter ($20,000 annually) For sites $3.0-4.99 million in revenue = $7,500 cap per quarter ($30,000 annually) For sites $5.0-7.49 million in revenue = $10,000 cap per quarter ($40,000 annually) For sites $7.5-9.99 million in revenue = $12,500 cap per quarter ($50,000 annually) For sites $10.0-14.99 million in revenue = $15,000 cap per quarter ($60,000 annually) For sites $15.0 million in revenue and above = $17,500 cap per quarter ($70,000 annually)

Other Notes: Each quarter will be an award period of its own. Multiple quarters will not be combined to determine eligibility. Newly acquired sites will be eligible to participate during their first full quarter withNVA. JV sites are eligible for participation in the team incentive bonus program, and JV partners will be responsible for paying their pro-rata share of bonuses.

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Site Leadership Profit-Sharing BonusCalendar Year 2021 The Site Leadership Profit-Sharing Bonus is intended to reward Site Leaders for exceptional financial performance throughout the fiscal year. Bonus Calculation: This bonus is calculated for the January 1st – June 30th and July 1st – December 31st time periods. Earning a bonus in one time period does not guarantee or disqualify the site from earning a bonus in another time period. To earn a bonus, the site must generate excess EBITDA (in dollars) relative to the higher of the two prior years’ EBITDA for the same time period. Please see the example below for clarity: Bonus Time Period July through December 2020

Comparative Period 1 July through December 2019

Comparative Period 2 July through December 2018

If qualified, the site’s EBITDA percentage is then used to determine what portion of the EBITDA growth willbe paid to the Site Leaders as a bonus. Please see below:

EBITDA Percentage 23% and Greater 19.0% to 22.99% 15.0% to 18.99% 11.0% to 14.99% 10.99% and below

Bonus as a % of EBITDA Growth 25% of Growth 20% of Growth 15% of Growth 10% of Growth 0

The maximum site award will be $15,000 per bonus period ($30,000 annually). The maximum award for a role will be $7,500 per bonus period ($15,000 annually). For JV sites, the management fee will be excludedfrom the EBITDA calculation.

Site Eligibility: Sites may participate AFTER the first full fiscal year after acquisition by NVA so that comparable financial data is available (for example, if a hospital is acquired in September 2020, they will be eligible for a bonus based on their performance from January - June 2022.) For JV general practice hospitals, participation is predicated on consent of JV Partner(s). Site Leader Eligibility: For NVA general practice hospitals, Site Leaders are defined as the Hospital Manager (“Site Manager”) and the Managing DVM. For clarity on who is defined as Site Leader(s) for thisprogram please consult with your Division Leader. In the event that more than one individual occupies said role, the bonus will be divided based on the discretion of the Division Leader. Individual must be employed in role for at least 90 days and be employed at time of distribution to be eligible for bonus. Siteleaders benefiting from an earn-out are not eligible to participate in bonus program until earn out periodconcludes. Site Leaders who are JV Partners in their site are also not eligible for this program.

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Calculation and Distribution: Calculations will be completed by the Support Center Team after the audited yearend financial statements are complete. Each bonus period will be calculated independent of other bonus periods. Bonus payments will be distributed in the 60 days following completion of each bonusperiod.

Site Leadership Profit-Sharing Bonus Examples: Example 1:

EBITDA Dollars EBITDA Percentage

July- December 2020 $340K 25.0%

July- December 2019 $280K 21.6%

July- December 2018 $250K 19.9%

The 2020 EBITDA was $340K. This number is compared to the $280K that was generated in the same timeperiod in 2019 (since this number is larger than the EBITDA generated in 2018). $340K - $280K = $60K The EBITDA percentage is 25.0%, which corresponds to a bonus pay-out percentage of 25% of the growth. $60K x 25% = $15K (refer to table above)The site award for this bonus period will be $15K.

Example 2:

EBITDA Dollars EBITDA Percentage

July- December 2020 $108K 22.7%

July- December 2019 $75K 13.5%

July- December 2018 $80K 14.2%

The 2020 EBITDA was $108K. This number is compared to the $80K that was generated in the same timeperiod in 2018 (since this number is larger than the EBITDA generated in 2019). $108K - $80K = $28K The EBITDA percentage is 22.7%, which corresponds to a bonus pay-out percentage of 20% of the growth. $28K x 20% = $5.6K (refer to table above)The site award for this bonus period will be $5.6K.

Example 3:

EBITDA Dollars EBITDA Percentage

July- December 2020 $55K 12.3%

July- December 2019 $40K 10.1%

July- December 2018 $39K 10%

The 2020 EBITDA was $55K. This number is compared to the $40K that was generated in the same timeperiod in 2019 (since this number is larger than the EBITDA generated in 2018). $55K - $40K = $15K The EBITDA percentage is 12.3%, which corresponds to a bonus pay-out percentage of 10% of the growth. $15K x 10% = $1.5K (refer to table above)The site award for this bonus period will be $1.5K.

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Calendar Year 2021 Additional Profits Pool When overall NVA financial performance allows for it, there may be additional funds available for distribution to top-performing sites at the end of the fiscal year. The amount of additional profits that can be shared will be solely dictated by overall company profitability for the year. All such distributions will bemade at the discretion of the Division Leader at fiscal year-end. Division Leaders will direct their payouts to teams (either through the team bonus, site leader profit sharing bonus, or both) that best deliver on agreed-upon goals and objectives, and largely in consideration of driving future site growth.

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Other Insurance Coverage Upon joining NVA your hospital will immediately be covered under our umbrella policy. See proof of coverage on following page. NVA's insurance covers: Professional Liability (PLIT), Disability, Worker's Compensation, General Liability, Property, Employment Practices Liability Insurance (EPLI). *See exceptions below

Worker's Compensation

Your hospital will receive a laminated sheet (also available on the following page) with quick reference information. Please post this in your breakroom. If a Worker's Comp. claim needs to be filed, Hospital Managers should call the Toll-Free number to report the claim over the phone. The "Employer's First Report of Injury" will be completed over the phone. Questions should be directed to Adam Weiss at ABWeiss@Lockton.com. A few anomalies: • • • •

Alaska is to contact Republic Indemnity--please see individual form on next pages California has an independent policy number--please see individual form on next pages Ohio & Washington must go through your state's required Worker's Compensation Canada note covered under NVA umbrella--please see individual form on next pages

Disability

Most hospitals will move under NVA's umbrella policy for disability insurance upon acquisition. The exceptions are: • • • • • •

California Hawaii New Jersey New York Rhode Island Puerto Rico.

Property

Property Coverage covers the structure and contents up to the $100,000,000 limit. Loss of rent for the building owner is also included in coverage.

Professional Liability/Malpractice

NVA's coverage is up to $2 million and will cover up to $100,000 in license defense. All DVMs practicing at an NVA hospital (relief included) fall under this umbrella. Thus, they do not need to have supplemental coverage through AVMA or another company.

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Insurance Contact Information For Information or Assistance regarding all lines of insurance, please contact: Adam Weiss Lockton Insurance Brokers (818) 415-4825 ABWeiss@Lockton.com Workers’ Compensation Injury Reporting Information *If the injury is not an emergency and the injured employee is available to speak with the nurse, contact NurseLine at: 833-951-2408 to report the claim instead of ESIS. Or report your claim to ESIS Claims: Phone: (877) 497-6334 E-mail: NVAClaims@tnwinc.com Workers’ Compensation Policy Number: CA Only – WLRC67816559 WI Only – WLRC67816511 All Other States: SCFC67816596 (N/A for Alaska, Ohio, Washington and Wyoming – Your Workers’ Compensation still goes through the state) General Liability Claim Reporting Information Chubb Insurance/ Report All Claims to ESIS Claims: Phone: (877) 497-6334 or email: NVAClaims@tnwinc.com Policy Number: XSLG71451422 Professional Liability & Cybersecurity Claim Reporting Information Arthur J. Gallagher & Co. Contact: Michelle Lundy Michelle_Lundy@AJG.com Phone: (805) 422-3543 Property Claim Reporting Information AIG Phone: (800) 767-2524 Policy Number: 015680542

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Licenses and Permits Handled by Sommer Nelson • •

Phone: 818-707-5215 Email: sommer.nelson@nva.com

Sommer will reach out at close to handle the ownership change, renewal, and maintenance for most licenses and permits necessary for the operation of the hospital and pet resorts, including, but not limited to: • • • • • • • • • • • • • • • •

Business licenses and Business Tax (State, County, and City) Local Business Tax Receipts / Business Tax Receipts Radioactive Materials License Premise / Veterinary Facility Permits (State applicable) Health Care Clinic Establishment (HCCE) permits (Florida) Veterinary Establishment License (Florida) Hazardous / Biomedical / Biohazard / Medical Waste Permits Alarm Permits (Police and/or Fire Department) Sign Permits Occupational Licenses / Tax Receipts Controlled Substance Permits (for hospital – not for individuals) Distributer of Dangerous Drug Permits Dumpster Permits Fire / non-Life Hazard Permits Air Quality Permits Wastewater / Drinking Water Permits

This is a fairly complete list of the items handled by Sommer, but many of these items will not pertain to each hospital, as every state/county/city have different requirements. **Sommer will not handle radiation (x-ray) or laser registrations, but if an ownership change is necessary and you need owner information (Tax ID #, Office info, etc.) feel free to reach out to her.

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Vendors and Accounting

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Vendors NVA has preferred vendors. These are vendors with which NVA has arranged special pricing and are highly recommend to use; a list can be found below. •

NVA would like you to use Covetrus as your main supplier, AVImark as your program management system and IDEXX (after any contracts are completed) as your lab provided.

•

After close, you will have a new FEIN# (included in Transition Account’s welcome email), legal entity and DBA ("Doing Business As"). You should use this information when contacting their vendors to ensure that their accounts are in the name of the hospital (not the selling doctor). This includes utilities, landscapers, cremation companies, pharmacies, etc. o These are considered Location Invoiced vendors.

•

NVA will change over preferred vendors for you - new account numbers will be sent to you within the 1st week of closing. DO NOT close existing accounts until your new accounts have been provided to you and are up and running.

•

If NVA has not worked with a vendor previously (assume all small hospital-specific vendors), then a W-9 needs to be submitted to Accounting with the first invoice requested to be paid. The W-9's can be scanned or faxed in. o Most of your Location Invoiced vendors will need a W-9 to be submitted.

What you need to do as a Hospital Manager: Use the grid below to make a list of all the vendors your hospital uses (from medical to landscaping, crematories, etc.) After close: call all the vendors on your list and not on the 'NVA Preferred vendors' list below to provide them with your new FEIN# (in Accounting Transition’s email) and tell them "the underlying financial responsibility has changed". This informs them someone else (NVA) will be paying the bills. o Occasionally a vendor will need a new application, line of credit, etc. if this occurs feel free to complete any documentation you are able to using your hospital as the contact/address. Send to your Transition Manager for additional support or questions.

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NVA Preferred vendors (better pricing): • • • • • • • • • • • • • • • • • • • • • • • •

Amazon Business Prime Bayer Boehringer-Ingelheim Care Credit Covetrus Dechra Elanco FedEx Hill’s IDEXX Merck MWI Plumb’s Purina Roadrunner/Atlas Royal Canin Staples Staples Technology (including Brother) Stericycle VIN Virbac Virox Wedgewood (including Diamondback) Zoetis

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NVA AP Invoiced vs. Location Invoiced: A/P Invoiced

Location Invoiced

(Invoice sent directly to NVA Support Center)

(Invoice sent directly to Hospital Location)

NVA

Hospital Name

Attn: Accounts Payable

Location Address

29229 Canwood Street Agoura Hills, Ca 91301 Vendors Included:

All Other Vendors

Associated Veterinary Purchasing Co. LTD Bayer Boehringer Ingelheim (BIAH) Covetrus* Elanco Hill’s IDEXX Midwest Veterinary Supply MWI Patterson Royal Canin Staples Advantage Veterinary Purchasing Co. Ltd Wedgewood Pharmacy Western Drug Distribution Center Zoetis

*Covetrus ME, Covetrus TX, Covetrus Pharmacy, Atlas Pharmacy, and Covetrus Software Services, LLC are not direct invoiced, and invoices will be sent to each site.

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Wells Fargo Stagecoach Deposit Card

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Invoice Processing System (IPS) via Quickbase

How to submit a WIT or ECR to Accounts Payable using IPS 1.

From the Home tab click

An Invoice Submission Form will open.

Note: All fields with a red asterisk * are mandatory. The yellow additional information about that field.

to the left of some field names will give you

A. From the Facility Number dropdown, choose the proper site. B.

If the invoice is to be divided between multiple sites, click on the

Invoice to Multiple Sites? check box. Then, in the text box that appears on the right, using the proper site numbers and amounts, let AP know how to divide up the invoice among the multiple sites. A. The Facility Name will automatically be filled in and today’s date will be entered in the Date of Submission field.

In the Invoice Details section, you will enter all pertinent information for this invoice. A. WIT or an ECR? If you select ECR, a checkbox will appear, giving you the option to choose to have the check sent out via Express Mail (FedEx or Priority, depending on the situation).

Vendor Name - enter the vendor name.

Mail Payment to Alternate Address - when the check is to be sent to an address other than the one on the invoice, check this box and enter the correct address in the form that appears on the right.

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D. Invoice Date - either type all 8 characters (mm-dd-yyyy) for the correct date or click on the calendar icon and choose the correct date. E.

Invoice Number - enter the invoice number from the invoice, or if it doesn’t have one, enter the date the invoice was received.

Payment Amount - enter the amount the check needs to be made out for all the way to the second decimal place (e.g. 172.00).

Note: If the amount in the Payment Amount field is different than the amount on the invoice or receipt, notate the reason why they are different on the invoice or receipt. G. Invoice Due Date - if you know the invoice due date, enter it in here. H. GL Code - if the invoice has only one GL Code, enter it in here. If the invoice has multiple GL Codes, click the checkbox, on the invoice next to each item write the proper GL code, and enter the GL Code in the Invoice Submission Form that is used most often on the invoice.

Name of Person Submitting - whoever is filling in this form, enters their name here. It is used for AP follow-up.

Invoice Attachment - attach a copy of the invoice (scan all pages; PDF format preferred). Note: You can only submit/attach one invoice at a time (even if they’re all from the same vendor). K.

General Notes - type in any information that you feel would be important for AP to know about this invoice.

Save and Close - to submit the invoice it must be saved. Click on the dropdown and choose Save & Close if this is the last invoice you are submitting at this time, or choose Save & New if you have another

invoice to submit. Note: If your invoice requires approval (based on the GL Code) it will automatically be routed to the proper Approver. Once approved it will automatically be routed to your Accounts Payable Rep for processing. You will receive an e-mail notification from notify@quickbase.com when: •

You submit an invoice

•

An invoice requires approval, once the invoice has been approved

•

The AP Rep has begun processing your invoice

Training Video:

https://vimeo.com/401518809

Password: nvalearn

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Rebate and Miscellaneous Checks For rebate or miscellaneous checks received, please follow the below instructions. • •

Deposit check into bank using a separate deposit slip and bag for the rebate(s) Complete the Miscellaneous Cash Report (attached) and send that in with the remittance with your other daily reports o Use NVA Account Code 50500-## (refer to Chart of Accounts) for supplies o Use NVA Account Code 20030 for revenue deposited into your pre-NVA accounts while we are waiting on your new accounts to be created

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Utilities Utility and Waste accounts via Engie  Who/What is Engie? • Engie is a third-party payment company with which we have partnered. • They are responsible for paying all utility and waste bills for our NVA US and Canadian facilities.  What happens to my utility bill invoices once the accounts are converted over? • All utility and waste accounts will have their billing addresses updated to Engie’s address to reach them directly. * Please note that this process takes approximately 90 days to reflect on the bill. o Engie Insight, PO Box 2440, Spokane, WA 99210  Does Engie also pay phone/TV/internet/wireless bills/medical waste? • No, Engie only handles utility and waste bills.  How do I submit my utility bills for payment? • Submit and request payment for all utility bills via IPS.  What happens after NVA helps to set up all of my utility and waste accounts with Engie? • Jackie Gomez (JGomez@nva.com) will send a follow-up email to each facility once all of the utility and waste accounts have been transferred. The email will also include Engie’s contact and general information.  It’s recommended that you review your Engie account monthly to verify that your invoices have been paid.

Telecommunication (Phone, TV, Internet, Wireless) accounts  Submit and request payment for all utility bills via IPS.  All telecom invoices should have their billing addresses updated by the Hospital Manager.  Can I review my telecommunication invoice payments via Engie? • No, Engie is only responsible for utility and waste bills for our NVA US and Canadian hospitals, not telecommunications.  HM must transfer their current phone and internet account(s) over to NVA.

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Relief Vet Payment/Invoice Processing Relief veterinarians can be paid one of two ways 1) If they do not have their own FEIN and/or are not working through an agency contract: a. Collect all relevant hiring forms (I9, W4, etc.) b. Add them to ADP as a relief veterinarian c. Pay them for their hours worked as an employee through ADP 2) If they do have their own FEIN and/or are working through an agency contract: An invoice for the relief veterinarian needs to be submitted to NVA to process payment. If one wasn’t provided, the hospital manager can either request it or create an informal version. The relief veterinarian’s first invoice submitted to NVA needs to include their W9 with their EIN (not a social security number). The IRS requires NVA to pay all relief veterinarians off of an EIN and cannot pay them via social security number. The process of obtaining an EIN is fairly simple and can be completed here: https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-numberein-online ACH Payment NVA encourages relief veterinarians to be paid via ACH, however, this is not a requirement. ACH is a bank to bank deposit outside of payroll that takes 2-3 business days to complete the transfer of funds. Note that this is different than payroll direct deposit. To be paid via ACH, the relief doctor needs to submit this information to NVA via this secure link: https://nva.quickbase.com/db/bqp8xjkzp?a=nwr&nexturl=%2Fdb%2Fbqp8vjmht%3Fa%3Dshowpage%26pageid %3D101 Payment Process (these steps are to be taken by the hospital manager) Steps for initial payment: 1. Obtain W9 and ensure an EIN is listed 2. Obtain invoice 3. Submit payment via IPS as a WIT*; ensure invoice and W9 is attached Steps for future payment: 1. Obtain invoice 2. Submit payment via IPS as a WIT*; ensure invoice and W9 is uploaded/attached when submitting in IPS Payment Timing Expectations These invoices must be processed as a WIT via IPS, which means payment will be issued by NVA within 5-7 business days of the hospital manager submitting invoice for payment. Business days are considered Mon-Fri and exclude NVA Support Center holidays. ACH payment adds 2-3 business days and USPS adds 7-10 days (on average) to receive payment. *Please be sure to communicate these payment timing expectations to your relief veterinarians.

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Visa Guidelines Usage Expectations: NVA Visa cards are to be used solely for hospital and work-related expenses. Itemized receipts must be submitted monthly. • • • • • • • •

The card should completely replace use of personal credit cards for legitimate business expenses. The card should be used for travel and related company expenses for NVA employees only. o The card should not be used by or for non-employees, which included spouses. Personal and non-business expenses should never be placed on the card. The card should be used for COD vendors and other vendors that do not allow payment on account. The card should not be used to replace invoices that can be forwarded to us during your normal daily or weekly invoice submission process. The card should not be used for recurring monthly invoices since they should be submitted during your normal daily or weekly invoice submission process. If you are unsure if a charge is a company related expense, please contact your DL or MRO for further instruction. The card is intended to be a 3rd option for payment in cases where submitting the Invoice through IPS is not possible or practical.

Spending Limits per card: • • •

Per Transaction Limit: $500 Monthly Transaction Limit: $5,000 In emergency cases, limits can be increased by contacting your DL or MRO.

Monthly Reconciliation Process (required back-up and documentation): • • •

•

At the end of each month, you will receive an email notifying you that your Visa statement needs to be reconciled via your hospital’s NVA Financials Folder. You will code each item listed in the spreadsheet to reflect the Chart of Accounts codes for expenses. Upon completion of coding the spreadsheet, scan all receipts and save them into your Visa Statement area in your NVA Financials Folder. o Itemized, detailed receipts must be included – ex., the detailed receipt for travel related meals and itemized receipts for purchases. ALL receipts must be scanned in for audit purposes and review by your DL or MRO.

Adding/Removing Cardholders: • •

Normally, the MDVM and HM are the only cardholders permitted. To add/remove a cardholder, complete the Visa Change Form and then email it to NVAVisa@nva.com and cc your DL or MRO.

Lost/Stolen cards: • •

Within 48 hours, notify Visa by calling 800-932-0036. Email NVAVisa@nva.com and cc Florence Domingo (FDomingo@nva.com) to notify them that your card was lost/stolen and that you have contacted Wells Fargo.

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Bad Debt End of Month Statements and Account Receivable (Bad Debt) Each Hospital is responsible for • • • • • • • • •

Local financial policy Managing client financing and Accounts Receivable (AR) Managing monthly client statements (Printing, mailing, and collection) Managing collections/collection agency and bad debt Bad Debt Any unpaid client balance 90 days past due is considered “Bad Debt” At 90 days past due, Accounting removes this debt from the hospital’s revenue in their next financial statement Accounting will deduct the bad debt from the revenue line in each month’s Statement of Operations and include this Bad Debt as a negative line item in the Revenue by Category Report But if you collect AFTER either through an agency or on your own it can be added back by using an MCR and Bad Debt Accounting code. RULE OF THUMB: When writing the hospitals personal financial policy, it is best to offer as little deferred payments as possible. When required, the goal should be to have the balance on deferred payments paid in full by 90days of service to avoid the bad debt appearing on the hospital’s financial statements.

Bad Debt – Found in Revenue by Category Report each month National Veterinary Associates Revenue by Category vs. Prior Year For the period ended September 30, 2017 114-Merrimack Veterinary Hospital

Bad Debt appears as a negative revenue line item each month Month-to-Date Actual 09/30/17 REVENUES Professional Services Office Visits/Consultations Vaccinations Procedures Surgery Anesthesia Dental Hospital Pharmacy Laboratory - In House Laboratory - Referral Radiology/Ultrasound Heartworm & Flea Products Sales Discounts Bad Debts

Actual 09/30/16

10/23/17 12:14 PM

Year-to-Date %

Variance

Actual 09/30/17

Actual 09/30/16

Variance

26,909 13,656 6,016 6,740 4,717 11,517 3,374 33,200 18,363 21,714 7,166 11,037 (3,954) (1,318)

13.89% 7.05% 3.11% 3.48% 2.44% 5.95% 1.74% 17.14% 9.48% 11.21% 3.70% 5.70% -2.04% -0.68%

24,502 12,331 8,259 10,786 6,111 11,869 3,109 29,530 16,222 22,170 11,125 9,880 (5,229 (6,104

13.08% 6.58% 4.41% 5.76% 3.26% 6.34% 1.66% 15.77% 8.66% 11.84% 5.94% 5.27% -2.79% -3.26%

2,407 1,325 (2,243 (4,046 (1,394 (352 265 3,669 2,141 (457 (3,959 1,157 1,275 4,786

82,697 41,026 25,130 25,055 19,936 42,933 11,461 97,903 53,098 71,926 28,402 35,880 (20,203 (5,752

13.06% 6.48% 3.97% 3.96% 3.15% 6.78% 1.81% 15.47% 8.39% 11.36% 4.49% 5.67% -3.19% -0.91%

76,316 37,191 25,636 24,180 14,152 31,895 9,381 92,383 52,204 62,744 27,348 32,351 (9,300 (23,214

13.43% 6.54% 4.51% 4.25% 2.49% 5.61% 1.65% 16.25% 9.18% 11.04% 4.81% 5.69% -1.64% -4.08%

6,382 3,835 (506 875 5,784 11,038 2,081 5,520 894 9,183 1,054 3,529 (10,903 17,462

159,136

82.17%

154,561

82.51%

4,575

509,494

80.48%

453,267

79.74%

56,227

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Bad Debt FAQs 1.

2. 3.

4. 5.

6. 7. 8.

How should I collect payment on an account more than 90days past due? Whether the payment comes directly from the client or from a collection agency, you should deposit the payment via MCR using the bad debt accounting code 67530. Then in the client’s accounting in your practice management software, make an “account adjustment” not a payment in the appropriate amount with notes on the check number. What are the ramifications if I haven’t been applying BAD Debt payments as outlined above? This recouped revenue is never seen again in your revenue category on future Statement of Operation reports What if a client is making incremental payments on the account which go past 90 days? Any remaining balance on the account past 90 days will be categorized as Bad Debt at 90 days. When does repaid Bad Debt appear again in my revenue? The month you collect and deposit it via MCR it appears in your revenue (offsetting that month’s Bad Debt deduction) This is then also reflected in your YTD moving forward throughout the year. Are held checks considered PIF? First when even possible you should avoid holding checks as it is not legally binding in any way. Second, these checks SHOULD NEVER be postdated as it is actually illegal to accept post-dated checks. If the held check increments go past 90 days, then yes any remaining balance post 90 days will be reflexed in your Bad Debt. I have a held check code in AVImark. Why would this be there? It was likely created by a former hospital leader at your practice or predates NVA. It is always best to avoid taking held checks as deferred payment whenever possible. Shouldn’t Bad Debt be reflexed in AVImark (or any PM software)? Yes, and it is. All PM software allows you to run reports to find account balances over 90 days. Any balance over 90 days has or will hit your BAD Debt category. What happens to DVM production when the balance is re-categorized as Bad Debt? Nothing because your DVM has already been paid for the services and revenue 60 to 90 days earlier. What if the client agrees to pay off Bad Debt via credit card? As per Tom Ho, the HM should collect payment via credit card and apply payment to clients account in the practice management software. Then accounting makes corrections for the recouped revenue on the back end.

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NVA Staff and Doctor Discount at IDEXX Reference Laboratories Congratulations on being an NVA partner! Your practice will receive 100% discount for staff and doctor’s personal pets with exclusions* when using IDEXX as your primary reference lab.  Required spend of $250 at IDEXX Reference Lab in the month prior to submissions and use staff/doctor discount sticker on requisition form to activate 100% discount.  There is no cap on the dollar amount of tests sent in for doctor and staff personal pets when meeting the above requirements.  Order staff/doctor discount stickers from your IDEXX Inside Sales Representative at caginsidesalescenter@idexx.com or 1-888-794-3399.

Guidelines: *Bloodwork that is performed by IDEXX Reference Lab is discounted at 100% with the exception of biopsies, cytologies, PCR tests, or any test that is NOT performed by IDEXX and would need to be sent to a 3rd party lab (Universities, Research facilities, etc.). Those “non-discountable tests” will be provided at the NVA price of 61% off list. Below are some examples of what is included in the 100% discount, and what test codes/categories are NOT discounted. Call reference lab support at 1-800-444-4210 for clarification if there is a code in question. IDEXX Ref Lab test examples (discounted at 100%)

IDEXX Ref Lab test examples (that are NOT discounted)

75 – Total Health Plus 1 – HealthChek Profile 723 – Heartworm Antigen 7244 – Lab 4Dx Plus Test 783 – Young Preanesthetic Profile 5013 – Fecal Antigen Profile 2665 – Cardiopet proBNP – Canine 804 – Total T4

2701 – Biopsy with Microscopic Description 2801 – Cytology with Microscopic Description 2811 – Cytology without Microscopic Description 601 – Priority Biopsy with Microscopic Description 906 – Fluid analysis with Cytology 1150 – Rabies Serology (RFFIT) – Kansas State Univ. 1009 – von Willebrands – Cornell University

Sincerely, Your IDEXX Team

Kathy Kaake

Corporate Account Representative NVA caaccountsetup@idexx.com

Allison Spengler

Corporate Account Manager NVA allison-spengler@idexx.com

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IDEXX Invoice Gateway Portal Instructions

1. How to enroll in the Invoice Gateway Portal. 2. Obtain your dedicated enrollment token from the remittance portion of your invoice or statement.

3. 4. New setups – if you do not have an invoice available to obtain your token, please call the Inside Sales Center at 1-888-794-3399. Please have your IDEXX account number ready to provide the Inside Sales Representative. 5. Navigate to http://idexx.billtrust.com and choose Sign Up now. 6. Set up with credentials that you choose for your login, your IDEXX account number & Enrollment Token (taken directly from your remit on your invoice). 7. The Portal will receive your invoices electronically via email. 8. You can view all open invoices.

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NVA & Zoetis Launch Exciting New Partnership!

June 1, 2020 – May 31, 2022 US HOSPITALS ONLY Enjoy upfront discounts (list above), discounted DX equipment & consumables, cross-portfolio dermatology rebate. Discounts available directly through Zoetis or distribution. No action is needed from you; as new discounted prices are already in effect. More Discounts: • Vaccines – 42% off list price before. Now 50% off! • Revolution & Revolution Plus – 10% off list price before. Now 12% off! Cross Portfolio Rebate Program: • Hospitals can participate in a cross-portfolio program to earn rebates on dermatology purchases • There are TWO levels in which you can earn rebates on Apoquel & Cytopoint • Rebates are based on two levels of Vaccine and Parasiticides purchases • Talk to your Zoetis representative for details and learn how you can save more!

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NVA & Roadrunner Partnership!

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NVA & Vetoquinol Launch New Partnership!

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IT & Telecom

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IT NVA has an IT helpdesk available for your team 24/7! Please feel free to contact them for more urgent matters via phone at: 888-777-7804 Option #2 For less urgent matters please email the helpdesk at helpdesk@nva.com - they will get back to you quickly! Note that the IT Helpdesk is for technology matters only. While they are very helpful, prior to your hospital converting to our network, some of their support may be limited.

Local IT Support

NVA's IT team is great but also remote (in California). So, we ask for you to keep your local IT person around for times when support is needed physically on-site. Often NVA's IT team will coordinate needs with your preferred local IT contact.

Email & Passwords

Hospital Leaders will each receive an NVA email address. Please be sure to check this email at least once a day as NVA will send all internal communications through these emails. In the first week you join NVA, our IT team will connect with you to setup this email account on your local computer through outlook. • • • •

Outlook via web is accessible here: https://outlook.office.com Your email address will likely be setup as follows: firstname.lastname@nvanet.com Your password to start will likely be: Welcome1! --you will be prompted to change this password upon first login The following pages share how to setup your mobile device with your NVA email--for help please contact the IT helpdesk

If your hospital has an email address or domain that you use to communicate with clients, we recommend keeping that in place for now. This way you can continue to communicate with clients in a method they are familiar with and does not distinguish you as NVA. Your general NVA and email password will be prompted to change about every three months.

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IT Helpdesk & Conversion One of the exciting opportunities your hospital will have upon joining NVA is to update your computers and other hardware!

IT Helpdesk Support

NVA has a 24/7 IT helpdesk located at our Support Center in CA for your team to get assistance any time they need. Our IT asks you to prioritize help as follows: • •

For emergencies or urgent support CALL 888-777-7804 option 2 For non-emergent support (if it can wait) please EMAIL instead: helpdesk@nva.com

Prioritizing this way will allow the helpdesk to assist all hospitals on their more urgent needs (including you!). Before you go through the hardware conversion, our IT helpdesk will be somewhat limited to how much they can help you. Please still call them and they will support as best they can. Often, NVA's IT team will link up with your local IT support if onsite work is needed.

Conversion

About 10 – 15 months post-close the Conversion team will reach out to you. Your hospital will be assigned a conversion specialist who will be your point of contact for the process. There is a lot of prep work in the process so they start early! They start post-close and you'll work together to identify a date (usually over a weekend) for the actual conversion to take place. Below is an example of what that weekend's timeline could look like. You will get NEW computers, monitors and printers! We want you to have new equipment so we can support it and you can support your patients without worrying about technology! This is a great time to think about whether you like where your computer stations are because our team can move them, add some, etc. for you. Even if you may want another station in 1 year, have them prep for it! The Hospital Manager is the person who works most closely with the conversion team on prep. Your life will be busy! You will need to do a nomenclature workbook where you map all of your services to NVA's codes. Codes will change but descriptions can stay the same.

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Vet Data Software for Reporting Upon joining NVA, in order to provide you with the best financial reporting through timely and accurate data with minimal work from you, NVA would like to install a software called Vet data on your home hospital’s server which will allow us to extract hospital revenue data from your program management system. Below are the key benefits and important things you should know about this process: 1.

What we need from you: • A hospital leadership person with server access or your local IT contact support to work with NVA in a team viewer to install the software • How long will it take to install? 30 minutes

How will you know the data we receive is accurate? • NVA’s team will generate reports within a few days of the install and validate the data with the Hospital Manager and NVA’s Support Center financial team based on historical records (from the sale)

What advantage does this provide to your hospital? • Automates revenue reporting to NVA: No manual sending of revenue data on a daily, bi-monthly and monthly basis to NVA (which is the alternative) • More accurate and complete data sets in your financial reports • More timely financial reports in your hands • Long-term: Enable any opted-in marketing functions sooner and faster

What program management systems can Vet data interact with? • AVImark • Cornerstone • Impromed/Infinity • ezyVet • HVMS • Via • eVetPractice • IntravetSQL • DVMaxSQL • DVMManager • Advantage • Stringsoft • TripleCrown • Intravet

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Telecommunications NVA has a Telecommunications Team that does a lot for our hospitals… • • • • •

• • •

Audits phone billing records to ensure you are getting the best price Circuit moves/adds/changes/disconnects with carriers Contract negotiations on your behalf Troubleshooting phone lines for you Coordinates replacement/install of phone systems o Note: New phone systems are not included in the conversion process; if your phone system is more than 10 years old, faulty or doesn't have caller ID please let your Transition Manager know and we can look into getting you a new system! Emergency preparedness Mobile phone support You will receive a Telecom Questionnaire from your TM to be completed within about 2 months from the time you join.

Cell Phones • •

Want a cell phone for the hospital? An emergency phone or on-call phone? Or just a phone to take photos of patients and text their owners with? Let your Transition Manager know! As a Hospital Manager are you using your personal phone for lots of work data? Let your Transition Manager know and we have some options to move to NVA's coverage. o See the following pages for mobile phone options! o NVA will reimburse a portion of the Seller's and HM’s personal mobile phone but not family members.

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NVA Mobile Phone Device Policy for Hospitals This policy may be updated at any time (without notice) to ensure changes to NVA’s structure and/or business practices are properly reflected in the policy. NVA Hospitals:

•

HOSPITAL o Emergency mobile phone for Hospital ($50)  Either VZ or ATT  Hospitals can choose to opt in our out.

TWO Options for MDVM & Hospital Manager: 1) NVA will purchase and setup a new iPhone (Business Specifications) with NVA provided phone number. (See below for details). The phone is equipped for all NVA business applications. NVA Approved service provider is Verizon. 2) Bring your own device (BYOD): Monthly $50 reimbursement – Processed via IPS. Attach copy of bill (the first page). All Mobile Devices Must use a Screen Lock Password for Security. If for any reason you leave or are terminated from work then you can either: 1) Keep the NVA provided iPhone, and reimburse NVA with a onetime fee (amount remaining on 2yr contract), By signing the acknowledgement below, employee specifically understands and agrees that NVA will withhold from employee’s final paycheck remaining dollar amount on phone issued if employee does not return to NVA pursuant to this agreement to the extent permitted by law and employee specifically consents to such withholding. OR 2) Send the Phone (Charger & Accessories) back to NVA Support Center with no cost to you. If your phone is lost: • Notify the helpdesk immediately @ helpdesk@nva.com or 888 777-7804 • Replacement fee will apply • Make sure to back up your data via ITunes or ICloud.com (recommended) using NVA email address If your phone is broken: • Notify the helpdesk immediately @ helpdesk@nva.com or 888 777-7804 • Make sure to back up your data via ITunes or ICloud.com (recommended) w/ NVA email • Turn in old phone (with accessories) and new phone will be activated

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The Purpose Usage: It is National Veterinary Associates policy that representatives of our organization who are issued a mobile phone understand the phones are issued for business use. Mobile phone bills are reviewed on a monthly basis. Driving: National Veterinary Associates has a zero-tolerance policy regarding using a mobile phone while driving. For the safety of our employees and others it is imperative that you pull over and stop at a safe location to dial, receive or converse on the mobile phone in any way. National Veterinary Associates reserves the right to amend or alter the terms of this policy. Acknowledgment of Mobile Phone Policy I, ___________________________, have received, read and understand the National Veterinary Associates Mobile Phone Usage Policy. Employee Signature & Date: ___________________________________________________________ Signature

_________________ Date

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Cell Phone Discounts As NVA Team Members, ALL staff can receive NVA cell phone discounts through AT&T and/or Verizon. Please note: Most discounts cannot be applied to Unlimited plans. Please find flyers with specific details on each program on the following pages. Additional information on Verizon instructions and AT&T paystub instructions can be found on NVAShare here: https://nvashare.com/HelpDesk/telecom/SitePages/Documents.aspx If you have any questions about the phone discounts or need help you can email Telecom@nva.com and cc Kim Rice KRice@nvanet.com.

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Accessing NVA Email Remotely NVA mailboxes can be accessed from any web browser as follows: 1. Open your web browser. (All major browsers are supported.) 2. In the address bar go to: outlook.office365.com. (No need to connect to VPN.) 3. At the login page, enter your NVA Username and password and click “Sign In.” Note: If this is the first time signing in your NVA webmail, you may be asked to set the time zone.

Standard Mailbox View with Inbox, Folders, Calendar, Contacts, etc.:

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Resetting Your Password 1. In the event that you need to reset your password, call NVA Helpdesk at (888) 777-7804, or open a ServiceNow ticket here: https://nva.service-now.com/ 2. Once you have contacted the Helpdesk and received a new temporary password, you will need to reset that password here: https://mail.nvanet.com/owa (*Please Note: This page is ONLY for resetting passwords, not checking email.) 3. Enter your NVA username and temporary password and click, “sign in.” You will be prompted to enter this information one more time, as well as create a new password. (*Please be as accurate as possible to avoid errors when creating your new password.)

4. Create a new password and then STOP when you get to the OK Screen. DO NOT CLICK OK! Instead, close the browser and WAIT 5 MINUTES for the password change to sync. 5. After 5 minutes, open a web browser and go to: outlook.office365.com 6. Log in with your NVA Username and NEW password to access your inbox. You will continue to use this web address to access the Outlook Web Version.

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Creating an Email Signature in Outlook Desktop Application Open the Outlook Application on your desktop: 1. Select the File tab on the top left corner.

2. Select the Options tab.

3. Select the Mail tab.

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5. Under Choose default signature, in the E-mail account list, select an email account to associate with the signature.

6. Under Select signature to edit, select New and type a name for the signature. Click OK.

7. Under Edit signature, type out the signature that you want to use and click OK.

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Your signature for the Outlook Desktop App is now complete!

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How to Add Your NVA Email to Your iPhone 1. Go to the Settings icon on the home screen of your iPhone.

2. Scroll down and tap on, “Mail.”

3. Tap on, “Accounts.”

4. Tap on, “Add Account.”

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6. Enter your NVA email address. (The description can be changed to “NVA” if preferred.) When complete, click, “Next.”

7. Select, “Sign in.”

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8. Enter your NVA password.

9. After entering your password, you will be prompted to use the DUO Authenticator App. Select your preferred method of authentication.

10. After authentication is complete, select what you would like included on your device and then click, “Save.”

Your iPhone setup is now complete!

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How to Add Your NVA Email to you Android Device 1. Install the Outlook App for Android from the Google Play Store.

2. Open the Outlook App and tap Get Started.

3. If asked for account type, tap Exchange.

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4. Enter your NVA email address and tap Continue.

5. Enter your Password and tap Sign in.

6. After entering your password, you will be prompted to use the DUO Authenticator App. Select your preferred method of authentication. Your Android setup is now complete!

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NVA Client Service Center (CSC) Benefits of utilizing NVA’s Call Center/ Client Service Center in your Hospital: *Only available after conversion to NVA’s Practice Management Software

Participation: • To opt-in or learn more about the Client Service Center, email CSCHelpline@nvanet.com. • If participating: o The Hospital Manager and CSR will complete the Hospital Information Sheet (HIS) prior to client contact o Contact Kim Rice at 805-367-5172 to confirm your phone lines have call forwarding • If inbound calls are needed for an emergency or meeting please email CSC_Live_Chat_Inbound_Team@nvanet.com

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Thank you ~

We look forward to working with and supporting you, your hospital, and team!

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Capital Expenditure Guidelines

Updated as of August 15, 2019

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Capital Expenditure 1.Purpose The purpose of this document is to provide guidelines to set out National Veterinary Associates (“NVA” or the “Company”) procedures in relation to the appropriate management, accounting, and reporting of all the Company’s fixed assets (“capital expenditures” or “capex”) in order to comply with applicable accounting standards and regulations, internal controls, and audit obligations.

2.Guideline Objectives The objective of these guidelines are to assist the Company in gathering and maintaining information needed for the preparation of budgets and the financial statements. These guidelines establish definitions, asset valuation methods, capitalization thresholds, useful lives, and depreciation methods. Costs which qualify for capitalization under these guidelines will be recorded as an asset on the balance sheet when incurred, and subsequently depreciated on a straight-line basis over the useful life of the asset. The depreciation must begin when the asset is complete and is ready for its intended use, commonly referred to as the “placed-in-service” date.

3.Definitions “Capital Expenditure (or Fixed Asset)”: Assets which are intended for long-term use and are not likely to be converted quickly into cash, such as land, buildings, and equipment. “Carrying Amount (or Book Value)”: The amount at which the asset is carried/recorded on the Company’s books/financial statements. Total purchase price less any previously recognized depreciation and adjustment for impairment. “Depreciate (Depreciation)”: A reduction in the value of an asset with the passage of time, due in particular to wear and tear. “Fair Value”: The amount at which an asset could be bought or sold in an arm’s length transaction between willing parties. Quoted market prices in active markets are the best evidence of Fair Value. However, if quoted market prices are not available, the estimate for Fair Value shall be based on the prices of similar assets. “Impairment”: Inability to recover the Carrying Amount of an asset. “Maintenance”: Activities undertaken after an asset has been placed in service to repair or preserve its continued use and function. Those activities include items such as routine upkeep and service, or replacement of minor parts. “Placed-In-Service Date”: The placed-in-service date is the point in time when property or long- term assets that can be depreciated are first placed in use for the purposes of accounting and marks the beginning of the depreciation period. “Total Purchase Price”: The total initial value of the asset including all costs required to bring the asset to its working condition. This can include, but is not limited to, such items as freight, sales tax, labor, and installation.

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4.Accounting Literature Refer to the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 360 – Property, Plant and Equipment, for the applicable authoritative accounting literature used as basis for the policies and procedures contained in this document.

5.Accounting Matters A capital expenditure, for purposes of these guidelines, is defined as an investment in real or personal property which: 1. Is held for use of income rather than for sale or conversion into goods or cash; and 2. Has a useful service life in excess of one year. Nonrecurring expenses directly associated with the investment (such as freight, sales tax, labor) should be included as part of the total expenditure for evaluation purposes. Any items that are not eligible for capitalization should be expensed and appropriately charged to an operating expense line item. A capital expenditure project is a separable physical and analytical unit consisting of one or more related capital expenditures which, if undertaken, will function as a unit to accomplish a specific objective. A capital project must always include all of the capital expenditures, related expenses and working capital requirements necessary to accomplish the stated objective.

5.1 General Guidelines If the “total item unit cost” is $500 or greater and the item has an expected service life of at least one year, the expenditure is to be capitalized. If the item acquired meets the one-year life criterion, but its unit cost is less than $500, it must be expensed. As a general rule, items costing less than $500 will not be considered for capitalization. If the invoice contains more than one item that each belong in separate accounts, the $500 guideline should be applied to the unit cost of each individual item – for instance, $1,100 for surgical lights and $150 for an office chair. In this instance, the lights would be a capex item, but the chair would not. In a bulk purchase of similar items with a useful life of more than one year, the $500 limitation will also be applied to the individual unit cost. An example would be the purchase of 3 office printers for $1,200 with the individual unit cost being $400 each, and thus would not be capex items. The total item unit cost includes the total billed price per unit on the invoice including freight, sales tax, labor and wiring for installation, and other costs related to the acquisition.

5.2 Capitalizable Fixed Assets The fixed asset accounts that follow contain definitions and/or examples of expenditures that are capitalized subject to this section.

Automobiles (GL # 15010) Includes four-wheeled passenger and non-passenger vehicles such as cars, vans, trucks, golf carts, tractors, etc.

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Medical Equipment (GL # 15020) Includes both traditional and specialized equipment used in the treatment and care of a patient. Common items include, but are not limited to, the following: Anesthesia Autoclave Bair Hugger Centrifuge Chemo Hood/ Biosafety Cabinet Crematory CT Dental Equipment ECG EMG / BAEP Endoscopy Equipment Exam Table Forceps Gastroscope Incubator Underwater Treadmill Vaporizer Vetlab

IV Pump Laser Therapy Livestock Chute Microscope Monitor MRI Respiratory Equipment Scales Surgical Tools > $500 Tables for Procedures Tonometer Tonovet Touch Monitors Ultrasonic Scaler Ultrasound Warming Units Water Pump X-Ray

Furniture & Fixtures (GL # 15030) Includes the accumulated capitalized costs for all furniture, fixtures, and non-medical equipment. Common items include, but are not limited to, the following: AC Unit (Portable or Window) Art Blinds/Windows Bookcases Chairs Desks File Cabinets Freezers Furniture Heating Unit

Kennels Laundry Equipment Lighting (Moveable / Portable) Microwave Refrigerator Signage (Moveable / Portable) Tables Televisions Water Heater

Leasehold Improvements (GL # 15040) Includes the cost of improvements made to leased property. This includes any new construction and additions to, or renovations of, existing structures both prior to the facility opening and subsequent to the building being placed in service. The total capitalized cost of the asset will include the cost of construction labor, materials, and services such as architectural fees. Common items include, but are not limited to, the following:

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Alarm System Architectural Fees Curbs and Paving Electrical and Cabling Fencing Flooring HVAC Certain Landscaping Costs

Lighting (Fixed to Facility) Remodeling / Renovation Roofing (New / Replacement) Security System Septic Signage (Fixed to Facility) Sprinkler System

Note: if you are planning a significant project (e.g. major remodel or renovation), please consult members of the Operations team (Senior Director of Business Operations and the Director of Real Property) who can be of additional assistance.

Construction in Progress (GL # 15060) Includes the accumulated cost of real property that is under construction and has not been placed in service. Once the property has been completed and placed into service, it shall be transferred to the appropriate fixed asset account(s) as defined herein. Please note, use of this account is generally restricted to the Accounting Department, and may not be used without prior approval.

Computers and Other Office Equipment (GL # 15070) Includes such items as computer hardware and peripheral equipment (e.g. printers, servers), Corporate ITrelated work (conversions, refreshes, break/fix), telephone equipment, cables, terminals, etc.

Software (GL # 15080) Includes externally purchased or in-house developed software. Refer to the Company’s Capitalized Software Policy, which describes the proper accounting for computer software developed or obtained for internal use consistent with FASB ASC 360 and AICPA SOP 98-1. If the purchase of computer software is included with the price of computer hardware and is inherent to its operations, the estimated useful life of the software should be consistent with the life of the hardware.

Asset Acquisition (GL # 15090) Includes real estate that is currently being used in business operations as well as land held as a potential building site or for other speculative or investment purposes. Amounts allocated to the land account consist of the entire cost of placing the land into suitable condition as a building site and should include the following: a) Basic purchase price b) All costs of closing the transaction, such as brokers' commission, fees for examining and recording the title, appraisal fees and legal fees c) All costs of surveying, clearing, draining, or filling to make the property suitable for its desired use, including the cost of removing or demolishing existing structures, including buildings. Any salvage recovery from clearing land should reduce the land cost d) Any past-due payments on the seller's mortgage, accrued interest, delinquent property taxes, and other encumbrances on the land by the Company at acquisition

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5.3 Depreciable Lives The goal of determining the appropriate depreciable life is to provide for a reasonable, consistent matching of revenue and expense by systematically allocating the cost of the depreciable asset over its estimated useful life. The estimated useful life of a depreciable asset may differ from company to company or industry to industry. For financial reporting, all depreciation is to be charged on a straight-line basis over the estimated useful life of the asset as follows: Automobiles, Medical Equipment, Computers and Office Equipment, and Software Furniture and Fixtures Leasehold Improvements

5 Years 7 Years 10 Years

5.4 Additions, Betterments, and Improvements

An addition is an increase (extension, enlargement or expansion) in an existing fixed asset, not a replacement of a fixed asset. This increase may be represented by separate units, such as chairs and tables, or by component parts, such as floor or wall tile where there were not originals. Additions that meet the service life criteria for fixed assets should be treated like original expenditures and capitalized, except where the cost is insignificant – e.g., under $500. Betterments and Improvements include major remodeling of an existing asset or replacement of a portion of an existing asset or unit by an improved or superior asset or unit that would extend the life or improve profits during the life of the asset. Major remodeling would include all costs associated with that remodeling even if some of those costs might normally be expensed if they were not part of a major remodeling project. An example would be changing an existing room (office, lobby, etc.) into an examination room where such costs as painting and decorating should be capitalized as opposed to incurring an expense. Minor additions, betterments and improvements are considered as repairs and maintenance and should be expensed as incurred.

5.5 Repairs and Maintenance Recurring expenditures necessary to maintain a given quantity and quality of service, or one-time expenditures to return an asset to a working condition, are considered repairs and maintenance. They do not add materially to the value of the asset, or prolong its expected service life appreciably, but are necessary to keep the asset in operational condition. The following expenditures are considered repairs and maintenance and are not subject to the total cost guidelines outlined previously (except as noted below): Automobile Parts Caulking and Sealing Maintenance Service Contract (i.e., landscape, janitorial, medical equipment) Painting of Building or Rooms Patchwork on Parking Lot Refinishing of Furniture or Fixtures Repainting of Buildings or Rooms Glass Replacement

Locks, Locksets, Keys Replacement of Lamps and Lights Re-Plastering Retiling of Floors, Walls, Ceilings Re-upholstery of Furniture Small Parts for Equipment Toilet Seat Waterproofing, Reroofing

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For those expenditures which are not clearly repairs and maintenance, if it can be determined that any part of the expenditure is a Betterment and Improvement (substitution with an improved or superior unit), that part of the expenditure should be capitalized. Similarly, a change in or modification of an asset should be capitalized, such as cutting a new entrance to the facility or extending air conditioning ducts to a new room. Relocations and alterations that increase the value of the asset and/or prolong the service life should also be capitalized; however, simply relocating an asset does not increase the value, and those costs would be expensed as incurred. The Finance Department should periodically review the repairs and maintenance account to ensure no costs are included that would normally be capitalized.

5.6 Internal Labor The following applies to the Information Technology (“IT”) department only. Internal labor may not be capitalized by any other departments without obtaining approval in advance from the VP of Finance/Controller or Chief Financial Officer. Requests for such an exception are to be submitted in writing to the appropriate office. The use of internal labor may be considered a capital cost when used as an integral part of the construction or development of a capital asset or capital project. In order to capitalize internal labor costs, the fixed asset must meet the capital requirements as defined previously. Capitalizable costs include payroll and payroll benefit-related costs of certain employees who devote time to the construction or development of a capital asset or capital project, to the extent of time the employees spent directly on that activity. Adequate records (i.e. employee time and expense reports) must be maintained to support amounts capitalized for each project. Payroll and payroll benefit-related costs for employees providing accounting, auditing, procurement, and administrative support do not qualify for capitalization and should be expensed as incurred.

5.7 Carrying Value The cost of an asset and its related reserves should be kept on the books and records of the Company for as long as the asset remains in service. Although the net effect of fully depreciated assets has no financial impact on the total assets of the Company, the financial statements should disclose the existence and total cost of the assets in use. GAAP (specifically Accounting Research Bulletin No. 43) requires that assets be recorded at cost. The basis of accounting for depreciable fixed assets is historical cost, including all the normal expenditures of readying an asset for use. However, unnecessary expenditures that do not add to the life or utility of the asset should be charged to expense. For example, the expenditure for repairing a piece of equipment that was damaged during shipment should be charged to expense. Expenditures that substantially increase the capacity or operating efficiency of an asset should be capitalized. Minor expenditures are usually treated as period costs although they may have the characteristics of capital expenditures. All stand-alone costs for less than $500 will be considered minor and generally not eligible for capitalization.

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5.8 Intercompany Transfer of Assets Any assets that are transferred between sites should be recorded at their book value (asset cost less accumulated depreciation). No gain or loss should be recorded as a result of a transfer. When an agreement is made between sites to transfer fixed assets, the involved sites should contact the Accounting Department who will confirm the transfer before processing the transaction.

5.9 Self-Constructed Assets Fixed assets that are constructed with the use of internal labor and materials can be capitalized. Indirect labor and other costs, such as utilities, insurance, and supplies should be expensed in the usual manner. For Internal Labor policy, see Section 5.6.

5.10 Approval and Submission Process All capital expenditures require the approval of the Division Leader (DL) prior to purchase. Equipment purchases that exceed $50,000 also require the approval of the Vice President (VP) of Operations. When submitting the invoice to the Support Center for payment (this includes estimates, deposits, and subsequent invoices received after the initial submission), please include all required approvals by the parties mentioned above. When approval is obtained via email, please submit a copy of the email with the invoice submission.

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