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0 SUNBELT® RENTALS July 2015 In October 2011 Sunbelt was awarded a contract by Hillsborough County Board of Commissioners for the rental of traffic control devices.The contract was to be in place for a period of three years. In August 2012 a Sunbelt employee sent a letter to the County informing the County that Sunbelt has closed its traffic safety location and that Sunbelt could no longer service the County under the awarded contract.The Sunbelt employee sent this letter without authorization from his manager or from Sunbelt's corporate office.The County subsequently sent a cure notice to the Sunbelt employee who did not respond and did not make the Sunbelt corporate office aware.The County then sent a debarment letter to the Sunbelt employee on January 22, 2013,which stated that Sunbelt would be debarred from doing business with the County for a period of two years. The Sunbelt corporate office was not aware of the debarment until February 10, 2014, at which time the County sent Teresa Soobitsky, Sunbelt Government Sales Manager, a letter notifying her of the debarment. This letter was spurred because Sunbelt had submitted a bid to the County in response to a solicitation for the rental of pumps. Ms. Soobitsky then notified Sunbelt's corporate office, namely Sunbelt's Director of Customer and Government Contracts.At that time,Sunbelt's Director of Customer and Government Contracts, Katy G. Lovering, initiated ah investigation into the debarment.The investigation has found that the Sunbelt employee who originally sent the letter in August 2012 to the County acted outside of Sunbelt's standard practices and represents an isolated incident rather than a systemic issue within Sunbelt. Ms. Lovering spoke with that Sunbelt employee's senior management and advised them to reprimand the Sunbelt employee in question.Sunbelt is a $2.5 billion company and has,to Sunbelt's Legal Department's knowledge, never been debarred prior to the 2012 Hillsborough County debarment. Sunbelt does business with state and local government entities across the country on a regular basis. Following the notice of debarment and fact finding by Sunbelt,Sunbelt's Director of Customer and Government Contracts had a conference call with Sunbelt's Regional Vice President, Executive Vice President and District Manager to notify them of the debarment and to instruct them to discuss the debarment and the employee's incorrect actions with the employee and impress upon the employee the seriousness of the situation.The employee,who at the time of the notice of cure and debarment was a Store Manager, he is no longer a Store Manager. Although the investigation points to the fact that this was an isolated event,Sunbelt's Standard Operations Manual has been updated to prohibit any field employee from signing customer contracts. Sunbelt performs internal audits at its stores and Sunbelt's internal auditors report on the store's compliance with the Standard Operations Manual to Sunbelt senior management. Sunbelt's corporate office also now requires that all contract related notices be sent to Sunbelt's corporate office rather than to Sunbelt stores.This was not the case in 2011 when the original bid was submitted. The Hillsborough County debarment was lifted on February 4, 2015. Hillsborough County has reached out to Sunbelt to ask us to bid on upcoming RFQs and Sunbelt has recently submitted a bid for Hillsborough County. 2341 Deerfield Drive Fort Mill.SC 29716 Phone:800-508-476A Fax:803-578-6850