BC International Group, Inc. Employee Handbook [PDF]

BC International Group, Inc. Employee Handbook

Table of Contents BCI HISTORY................................................................................................................................ 1  IMPORTANT NOTICE.................................................................................................................. 2  1: THE COMPANY PHILOSOPHY/MISSION STATEMENT .................................................. 3  2: THE COMPANY’S COMMITMENT TO YOU ...................................................................... 3  3: EQUAL OPPORTUNITY EMPLOYMENT ............................................................................ 3  4: NON-HARASSMENT POLICY ............................................................................................... 4  5: IMMIGRATION REFORM AND CONTROL ACT................................................................ 6  6: EMPLOYMENT CLASSIFICATIONS .................................................................................... 6  7: WORK SCHEDULE ................................................................................................................. 7  The Workday ...................................................................................................................... 7  Attendance and Punctuality ................................................................................................ 7  Meal and Rest Periods ........................................................................................................ 8  8: BCI PROPER RECORDING OF HOURS................................................................................ 8  Overtime ............................................................................................................................. 8  Meal and Rest Periods ........................................................................................................ 9  Errors in Pay ....................................................................................................................... 9  9: COMPENSATION .................................................................................................................. 10  Paydays ............................................................................................................................. 10  Direct Deposit ................................................................................................................... 10  Go Green and Go Paperless .............................................................................................. 10  10: INTEGRITY STATEMENT ................................................................................................. 10  11: STANDARDS OF CONDUCT ............................................................................................. 11  12: PERSONAL PRESENTATION STANDARDS ................................................................... 13  13: CONFIDENTIALITY OF INFORMATION ........................................................................ 14  14: COMPANY PROPERTY ...................................................................................................... 15  Client Information and Client Books ................................................................................ 15  Use of Phone Systems ....................................................................................................... 16  Smartphones, PDA’s, Tablets, and Laptops ..................................................................... 16  Computers, Printers, and Fax Machines ........................................................................... 18  E-mail ................................................................................................................................ 18  Internet .............................................................................................................................. 19  Social Networking ............................................................................................................ 20  15: VIOLENCE IN THE WORKPLACE.................................................................................... 21  16: SUBSTANCE ABUSE .......................................................................................................... 21  17: NO SOLICITATION / NO DISTRIBUTION ....................................................................... 23  18: MEDIA RELATIONS ........................................................................................................... 24  19: CONTESTS ........................................................................................................................... 24  20: TALENT SEARCH AND REFERRAL PROGRAM AWARD ........................................... 24  i BC INTERNATIONAL GROUP, INC. EMPLOYEE HANDBOOK

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Management Position........................................................................................................ 25  Non-Management Position ............................................................................................... 25  21: HUMAN RESOURCES RECORDS ..................................................................................... 26  22: RELEASE OF EMPLOYEE INFORMATION .................................................................... 26  23: BENEFITS AVAILABLE AFTER 90 DAYS OF EMPLOYMENT ................................... 26  Bereavement ..................................................................................................................... 26  Jury Duty ........................................................................................................................... 27  Paid Holidays .................................................................................................................... 27  Sick Days .......................................................................................................................... 27  24: BENEFITS AVAILABLE AFTER SIXTH MONTH OF EMPLOYMENT ........................ 28  Personal Days.................................................................................................................... 28  Vacation Days ................................................................................................................... 28  Non-Manager Employees ................................................................................................. 28  Manager or Manager level Employees ............................................................................. 29  Request for Absence ......................................................................................................... 29  Managers ........................................................................................................................... 29  Full Time and Part Time Employees ................................................................................ 30  25: FAMILY AND MEDICAL LEAVE ACT (FMLA) ............................................................. 30  Eligibility .......................................................................................................................... 31  Form of Leave ................................................................................................................... 31  Notice and Procedures ...................................................................................................... 31  Use of Vacation and Sick Time ........................................................................................ 32  Maintenance of Health Benefits........................................................................................ 32  Medical Certification ........................................................................................................ 32  Reinstatement.................................................................................................................... 33  26: MILITARY LEAVE .............................................................................................................. 33  27: HEALTH AND WELLNESS ................................................................................................ 34  Safety and Health .............................................................................................................. 34  Safety Tips ........................................................................................................................ 34  On the Job Injuries ............................................................................................................ 35  Medical Emergencies ........................................................................................................ 35  FOR BCI’S SALON EMPLOYEES............................................................................................. 36  1: SALON MANAGER EXPECTATIONS ................................................................................ 36  2: SALON PERSONNEL FILES AND CONFIDENTIAL INFORMATION ........................... 36  3: PERSONAL PRESENTATION STANDARDS ..................................................................... 36  4: MEETING SALES/SERVICE EXPECTATIONS AND STANDARDS ............................... 37  5: WRITING GUIDELINES ....................................................................................................... 37  6: SHOPPING ............................................................................................................................. 37  7: PARTNER STORE MERCHANDISE POLICY .................................................................... 38  8: ENTERING AND EXITING LOCATION ............................................................................. 38  9: SALON COVERAGE POLICY .............................................................................................. 38  10: SCHEDULED MEAL AND REST PERIODS ..................................................................... 38  11: SCHEDULE SUBMISSION ADHERENCE ........................................................................ 39  ii BC INTERNATIONAL GROUP, INC. 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12: POWER OUTAGES, STORE EVACUATIONS, AND STORE CLOSINGS ..................... 40  13: SMOKING POLICY ............................................................................................................. 40  14: MUSIC LISTENING ............................................................................................................. 40  15: ENCOUNTERING AN AGGRESSIVE CLIENT ................................................................ 40  16: HANDLING SHOPLIFTING SITUATIONS ....................................................................... 41  17: SALES INTEGRITY ............................................................................................................. 41  18: INVENTORY SHORTAGE .................................................................................................. 42  FOR BCI’S CORPORATE EMPLOYEES .................................................................................. 43  1: EMPLOYEE IDENTIFICATION CARD ............................................................................... 43  2: VISITORS TO BCI PROPERTY ............................................................................................ 43  3: SMOKING POLICY ............................................................................................................... 44  4: POWER OUTAGE, BUILDING EVACUATION, AND WEATHER EMERGENCIES ..... 44  5: CORPORATE PERSONAL PRESENTATION STANDARDS ............................................ 45  6: SCHEDULED MEAL AND REST PERIODS ....................................................................... 46  7: CORPORATE OFFICE HOUSEKEEPING ........................................................................... 46  8: MUSIC LISTENING ............................................................................................................... 46  9: EMPLOYEE PURCHASE PROGRAM ................................................................................. 47  10: EMPLOYEE SERVICE DISCOUNT POLICY .................................................................... 47  11: TRAVEL POLICIES ............................................................................................................. 48  FOR BCI’S WAREHOUSE FACILITIES, FACTORY, AND DRIVERS.................................. 50  1: BCI LOGGING SYSTEM ....................................................................................................... 50  2: SMOKING POLICY ............................................................................................................... 50  3: POWER OUTAGE, BUILDING EVACUATION, AND WEATHER EMERGENCIES ..... 51  4: SCHEDULED MEAL AND REST PERIODS ....................................................................... 51  5: WAREHOUSE AND FACTORY PERSONAL PRESENTATION STANDARDS.............. 52  6: USE OF MUSIC AND PERSONAL DEVICES ON WAREHOUSE FLOOR ...................... 53  Music and Listening Devices ............................................................................................ 53  Use of Cell Phones, Smart Phones, and PDA’s ................................................................ 53  7: DRIVER’S OVERVIEW ......................................................................................................... 53  8: DRIVERS, DRIVER’S HELPERS, AND COURIER DRESS CODE AND APPEARANCE GUIDELINES ............................................................................................................................... 54  9: DRIVERS, DRIVER’S HELPERS, AND COURIER PROCEDURES ................................. 55  10: DAILY PAPERWORK—MASTER TRIP SHEETS ............................................................ 56  11: LOADING AND UNLOADING MERCHANDISE AND GARMENTS ............................ 56  12: VEHICLE MAINTENANCE AND UP-KEEP ..................................................................... 57  13: VEHICLE OPERATION....................................................................................................... 57  14: ON DUTY REQUIREMENTS.............................................................................................. 58  15: BCI COURIER ...................................................................................................................... 59  STATE ADDENDUMS................................................................................................................ 60 

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BCI HISTORY BC International Group, Inc. (BCI), formerly known as Birger Christensen (USA), Inc., was established in February of 1993. Our dedication to strong partnerships and a commitment to the industry have resulted in expansive growth over the years. Previously involved in fur manufacturing and wholesale, BCI entered into its first lease agreement with Canada’s leading specialty retail store, Holt Renfrew in April of 1993. Due to the success at Holt Renfrew, BCI converted exclusively to a retail operation in December of 1994. In May of 1995, BCI entered into its agreement with Saks Fifth Avenue. We presently operate all of the Fur Salons in Saks Fifth Avenue. The next addition to the BCI family was Macy’s in February of 1997. Within the first year with Macy’s, we were operating 26 locations on the East Coast. Presently we operate all of the Fur Vault departments in Macy’s. BCI’s rapid growth trend continued with the addition of Fur Salons in Carson Pirie Scott stores. By the Fall of 1999, we acquired the leased operations in Maximilian at Bloomingdale’s. To support these full service fur salons, BCI operates storage and service facilities in New Jersey (main distribution center), California, Florida, Georgia, Illinois, and Texas. Product, planning, and partnerships have helped grow and extend our business so that today BC International is the largest retailer of luxury furs in the United States. That status affords many benefits, which are shared throughout our partner businesses. We are able to provide state of the art services, which are enabled by the latest technology and most recent IT innovations. Our goal is to always stay one step ahead of our clients by making available to them what they need before they ask for it. In the end, the business of our retail partners is our business, and our goal is to seamlessly mesh with each store’s ideology and brand positioning.

WELCOME TO THE BCI FAMILY!

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IMPORTANT NOTICE Welcome to BC International Group, Inc. (for purposes of this Handbook will be referred to as either “BCI” or “the Company”). The purpose of this Handbook is to help familiarize our Employees with established standards and to provide guidelines along with general information about the Company. Information about our policies, benefits, and other pertinent matters to guide and assist our Employees is provided within. Your employment at BCI is at-will. This means that regardless of any provision in this Handbook, or any provision or policy anywhere, either you or BCI may terminate the employment relationship at any time, for any reason, with or without cause or notice. This Handbook, does not constitute an express or implied employment contract, nor does any other document or policy. No Employee or other agent of BCI, other than Chris Spyropoulos, President of the Company and CEO, has the authority to enter into any employment agreement contrary to the above or to enter into any agreement with any Employee for any specified period of time. Any employment agreement must be in writing and signed by Chris Spyropoulos. By accepting employment with BCI, you have a responsibility to BCI, its Partner Stores, and your fellow Employees to adhere to certain rules of behavior and conduct. Although this Handbook describes the general guidelines of the Company’s rules, policies, and benefits, it is not binding on the Company. Indeed, BCI is a dynamic company and as we change, standards and benefits may also change. As such, the Company reserves the right to unilaterally change, revise, or discontinue its rules, policies, and benefits contained in this Handbook. BCI remains the final authority regarding the interpretation and application of this Handbook. State-specific laws and provisions found in your state’s addendum (located at the end of the Handbook shall take precedence over the general guidelines contained within the Handbook wherever applicable. For more on state-specific provisions, please refer to your state’s addendum. There may be occurrences when additional policies and procedures are issued by management for a particular store, location, or group of Employees; this is acceptable as long as they are consistent with the Handbook. It is the Employee’s responsibility to be aware of these specific policies as well. The guidelines stated in this book supersede and invalidate any previous guidelines contained in prior or previous guides, policies, or other manuals.

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1: THE COMPANY PHILOSOPHY/MISSION STATEMENT To be the world’s leading furrier by providing a premier product, superior service, sustaining profitability, and achieving our financial plans. In order to support our mission we embrace the following vision: 

We believe that our client is our first priority.

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In order to maintain that priority we also believe that our Employees are our most valuable asset.

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We pledge to value our partnership with all of our lease partners by upholding their standards in our business.

Our business will support a safe and productive environment that will be characterized by fair treatment, open communication, teamwork, and personal accountability. 2: THE COMPANY’S COMMITMENT TO YOU The Company encourages its Employees to bring questions, suggestions, and complaints to its attention. Careful consideration will be given to each of these in the Company’s continuing effort to improve operations. If an Employee has a problem, he/she should present the situation to his/her Supervisor so the problem can be settled through an examination and discussion of the facts. The Company hopes that the Supervisor will be able to satisfactorily resolve most matters. If an Employee finds that he/she still has questions after meeting with his/her Supervisor or would like further clarification of the matter, he/she may request a meeting with Human Resources (HR), who will review the issues and meet with the Employee to discuss possible solutions. Employee suggestions and comments on any subject are important to BCI so it encourages its Employees to take every opportunity to discuss them. 3: EQUAL OPPORTUNITY EMPLOYMENT BCI is committed to providing equal employment opportunities to all Employees and Applicants for employment without regard to race, color, religion, creed, sex (including pregnancy or childbirth), national origin, ancestry, alienage or citizenship status, age, familial status, disability or handicap that can be reasonably accommodated without undue hardship, atypical hereditary cellular or blood trait, sexual preference or orientation, marital status, domestic partnership or civil union status, genetic information, gender identity, veteran’s status, status as a victim of domestic violence, sexual assault or stalking, or any other classifications protected by applicable Federal, State, and Local laws. This governs all aspects of employment, including, but not 3 BC INTERNATIONAL GROUP, INC. EMPLOYEE HANDBOOK

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limited to, recruiting, hiring, placement, promotion, transfer, compensation, benefits, training, education, separation, and all other terms and conditions of employment. BCI is committed to providing reasonable accommodations to Employees where necessary to perform the essential functions of their job. Employees with a disability seeking an accommodation to perform the essential functions of their job must bring their request to Human Resources. 4: NON-HARASSMENT POLICY BCI is committed to providing a work environment in which all individuals are treated with respect and dignity. The Company will not tolerate the harassment of any Employee by any other individual for any reason, including objectionable conduct by other Employees, Managers, vendors, or clients. BCI expressly prohibits any form of harassment or discrimination based on race, color, religion, creed, sex (including pregnancy or childbirth), ancestry, alienage or citizenship status, national origin, age, familial status, disability or handicap that can be reasonably accommodated without undue hardship, atypical hereditary cellular or blood trait, sexual preference or orientation, marital status, genetic information, gender identity, veteran’s status, status as a victim of domestic violence, sexual assault, or stalking, or any other classifications protected by applicable Federal, State, and Local laws. Harassment may take many forms, but the most common forms include: 

Verbal conduct such as epithets, threats, derogatory jokes or comments, graphic commentary and suggestive remarks, suggestive or insulting sounds, off-color namecalling, negative stereotyping, slurs, intimidating gestures, unwanted sexual advances, invitations, or comments;



Visual conduct such as derogatory and/or sexually-oriented posters, photography, cartoons, drawings, gestures, e-mail messages, calendars, leering, or obscene gestures;

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Physical conduct such as assault, unwanted touching, sexual activity or intercourse, blocking normal movement or interfering with another person because of sex, race, or any other protected characteristic; or

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Retaliation or threats of retaliation for making a report of harassment, threatening to report harassment or for participating in an investigation into a harassment allegation.

In addition, sexual harassment may include a range of subtle and not so subtle behaviors and may involve individuals of the same or different gender. Depending on the circumstances, these behaviors may include, but are not limited to: unwanted sexual advances, subtle or overt pressure for sexual favors, sexual jokes, innuendos, advances or propositions, verbal abuse of a sexual nature, graphic commentary about an individual's body, sexual prowess or sexual deficiencies, leering, whistling, touching, pinching, assault, coerced sexual acts, or suggestive, insulting, or obscene comments or gestures, display in the workplace of sexually suggestive material, objects or pictures, and other physical, verbal or visual conduct of a sexual nature. 4 BC INTERNATIONAL GROUP, INC. EMPLOYEE HANDBOOK

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Whatever form it takes, BCI will not permit any Employee to harass others with whom he/she has business interactions including, but not limited to other Employees, Managers, clients, or vendors, or permit any outsider to harass its Employees. This is true, not only in the workplace, but during business trips, in client/vendor offices, during business-related social events, or at any other time during which an Employee represents the Company in an official capacity. All Employees must comply with this policy and take appropriate measures to ensure that such conduct does not occur. In particular, if any Supervisor learns of potential or current harassment of any form, but does not report it for investigation, that individual will be subject to disciplinary action that BCI deems appropriate under the circumstances. Taking the appropriate measures: 

In an effort to avoid any misunderstandings and foster open communication in the workplace, Employees should, but are not required to, communicate their discomfort to those whom they feel are engaging in inappropriate conduct.

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Employees who believe they have been subjected to any kind of harassment, whether or not they have confronted their alleged harasser, and Employees who witness or are aware of harassment, are urged to contact their immediate Supervisor or Human Resources, at 973-826-1150.

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Under no circumstances is an Employee required to report the harassment to a Supervisor whom he/she is accusing of harassment. If this is the case, Employees may make a complaint directly to Chris Spyropoulos, President of the Company and CEO.

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You are requested to submit your complaint in writing. However, you are not required to do so, and may make a verbal complaint instead.

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The Company will promptly investigate any complaint, and such investigation will, to the maximum extent feasible, remain confidential, on a strict need-to-know basis. However, investigation of such complaints may require disclosure to the accused individual and to other witnesses in order to gather pertinent facts.

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At the conclusion of its investigation, BCI will take whatever action, if any, it believes appropriate under the circumstances or, where warranted, to prevent the occurrence of such conduct in the future, including, but not limited to, training, re-assignment, demotion, compensation adjustment, or disciplinary action up to and including termination of employment.



An Employee who is dissatisfied with the resolution of a complaint is entitled to file a written complaint with a Sr. Vice President of BCI, who will review the record promptly and notify the complaining party of BCI’s decision.

Employees may not be disciplined, nor retaliated against, for making good faith reports of harassment in an appropriate and professional manner.

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5: IMMIGRATION REFORM AND CONTROL ACT BCI is committed to employing only individuals who are authorized to work in the United States and does not unlawfully discriminate on the basis of citizenship or national origin. In compliance with the Immigration Reform and Control Act of 1986, each new Employee, as a condition of employment, must complete the Employment Eligibility Verification Form I-9 and present documentation establishing identity and employment eligibility within three (3) business days of commencing employment. Former Employees who are rehired must also complete the form if they have not completed an I-9 with BCI within the past three (3) years, or if their previous I-9 is no longer retained or valid. Employees with temporary employment authorization are obligated to submit updated or new authorization documents prior to the expiration of the temporary employment authorization documents. Employees with questions or seeking more information on immigration law issues are encouraged to contact Human Resources. Employees may raise questions or complaints about immigration law compliance without fear of reprisal. 6: EMPLOYMENT CLASSIFICATIONS Each Employee is designated as either non-exempt or exempt from certain Federal and State wage and hour laws. Non-exempt Employees are entitled to overtime pay under the specific provisions of Federal and State laws. Exempt Employees are excluded from specific provisions of Federal and State wage and hour laws. An Employee’s exempt or non-exempt classification may be changed only upon written notification by the Company. In addition to the above categories, each Employee will be categorized as one of the following: 

Full-Time Employees: regular Full Time Employees are individuals regularly scheduled to work 37.5 to 40 hours per week. Regular Full Time Employees are eligible for most Employee benefits described in this Handbook.



Part-time Employees: regular Part Time Employees are individuals regularly scheduled to work 25 hours per week. Regular Part Time Employees are eligible for most Employee benefits described in this Handbook.



Contingent Employees: those individuals employed to work on a temporary or seasonal basis (e.g., to provide additional support during the Fourth Quarter; to provide support for special events); and/or those individuals employed to work on call, scheduled to work between 0 – 37.5 hours per week. Typically, Contingent Employees work less than 25 hours per week, on an “as needed” basis. Contingent Employees are not eligible for benefits (health and dental benefits, holidays, vacation time, etc.) offered through BCI, except for the 401K plan. 6

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Full Time and Part Time Employees may be required to fluctuate work hours during the off-peak season to accommodate the operation of a Summer Hours schedule in our Partner Stores. If an Employee is required to fluctuate his/her regularly scheduled hours for purposes of accommodating the Summer Hours schedule (and for this reason only), eligibility for certain benefits through BCI will not be affected. If a Contingent Employee has not worked scheduled hours in ninety (90) days, they will no longer be considered employed by BCI. The Salon Manager will complete a payroll status change terminating employment. 7: WORK SCHEDULE The Workday Employee starting times may fluctuate depending on business and client demands. For payroll purposes, each workweek starts on Sunday at 12:00 am and ends the following Saturday at 11:59 pm. All meals and rest periods must be taken and should be scheduled by your Supervisor to ensure that we consistently maintain and exceed our client’s expectation of customer service. Attendance and Punctuality Due to the seasonal nature of our business, requests for time off must be approved in advance to meet the needs of our clients. The schedule is designed to provide the best customer service. Punctuality and attendance are required of all Employees/Managers. Frequent unexcused or unexplained absences, tardiness in reporting to work or early departure from work and extended meal and rest periods cause inconvenience to co-workers and clients. Excessive absenteeism or tardiness may result in disciplinary action, up to and including termination of employment. The Employee/Manager is responsible for notifying his/her Supervisor (for purposes of this Handbook any reference to Supervisor means Salon Manager, Divisional Contact, or Department Head) as soon as possible, prior to the start of the shift, if he/she is unable to report to work on time or if he/she must be absent. Leaving a voicemail message for his/her Supervisor does not qualify as notification of Supervisor. The Employee must speak to their Supervisor. If the Employee is unable to reach his/her Supervisor, he/she must notify Human Resources. BCI may consider an Employee to have abandoned his/her job if the Employee fails to contact his/her Supervisor or Human Resources for three (3) consecutively scheduled workdays. You should be prepared to substantiate the reason for your absence. If you are absent for medical reasons, you may be required to furnish documentation, including a statement from your doctor. 7 BC INTERNATIONAL GROUP, INC. EMPLOYEE HANDBOOK

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Meal and Rest Periods It is the Salon Managers responsibility to ensure that if a Salon Associate is scheduled to work five (5) hours or more during a work shift that a meal/rest break is calculated in the scheduled time. If an Employee works:  

5-8 hours they are required to take an unpaid 30-minute meal/rest period. 8.5 hours or more they are required to take an unpaid 60-minute meal/rest period.

Please contact Human Resources if a Salon Associate is scheduled more than 8.5 hours during a work shift. Non-exempt nursing Employees are permitted to express breast milk following the birth of a child. BCI will designate a private room, other than a bathroom, for Employees who wish to express breast milk. An Employee who wishes to take advantage of this policy should request such time in advance so that BCI can properly designate a private room for the Employee’s usage. Time spent expressing breast milk will be unpaid. Employees must enter time in at the start of their meal/rest period and must enter time out when they return from their allotted period. Contact Human Resources if during the work shift a Salon Associate is not able to take scheduled meal/rest period because of coverage issues. Federal or State laws that provide greater protection or benefits shall take precedence over these guidelines wherever applicable, please refer to your state’s addendum. 8: BCI PROPER RECORDING OF HOURS BCI is utilizing timesheets to record hours. The system has Employees enter the time in and time out during the day (including meal/rest periods) on a timesheet. It is the responsibility of the Employee to correctly enter his/her time in and time out over the course of the day. There should not be any inappropriate use of the timesheet to alter the actual hours worked. See BCI’s Procedure Manual for the detailed Proper Recording of Hours Worked policy. The Company expects that the record of hours worked submitted to Payroll will accurately reflect actual hours worked by all Salon Employees. Time fraud will not be tolerated. Overtime Non-exempt Employees are eligible for overtime compensation for hours worked in excess of forty (40) hours per week. Approved overtime is reimbursed at one and one-half (1½) times the 8 BC INTERNATIONAL GROUP, INC. EMPLOYEE HANDBOOK

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regular straight time, hourly rate for all authorized overtime hours worked in a workweek. Federal or State laws that provide greater protection or benefits shall take precedence over these guidelines wherever applicable, please refer to your state’s addendum. Time paid for holidays, vacation, bereavement, sick days, or jury duty is not included when computing overtime pay. Each Employee is required to be available for overtime, as conditions dictate. As with most retail companies, BCI experiences seasonal periods of high activity. When this occurs, additional work, including overtime, may be required of everyone. We appreciate and expect your cooperation. Your Supervisor will notify you whenever overtime is necessary and efforts will be made to provide you with advance notice, pending written approval from Human Resources or Divisional Contact. All overtime worked will be paid in accordance with Federal and State laws; however, working overtime that is not authorized is a violation of Company policy and may result in disciplinary action, up to and including termination of employment. Your acceptance of offered overtime is a commitment to appear for that overtime shift. Tardiness or absence for scheduled overtime will be treated as tardiness or absence from a regular shift and may result in disciplinary action, up to and including termination of employment. Should you have any questions or concerns, please contact Human Resources. Exempt Employees are not eligible for overtime compensation for hours worked in excess of forty (40) hours per week. Salon Managers are to enter the exact amount of hours worked per week. It is mandatory that Salon Managers work a six (6) day week during peak season. There is no compensatory time earned from working these six (6) day workweeks as they are part of the requirements that the Company has for Salon Managers. If a Salon Manager chooses to work or is required to work a six (6) day week for any reason during any other time of the year, that Salon Manager does not earn any compensatory time for any hours worked outside of a normal forty (40) hour, five (5) day work week. Meal and Rest Periods Part of performing well is taking your scheduled meal and rest periods, as these scheduled times away from the job provide a refresher. The number and the length of your meal/rest periods depend on the length of your scheduled workday, and in some states this is based on the criteria established by the government. Employees should consult with their Supervisor, Work Schedule section of this Handbook, and/or the appropriate state addendum for more information regarding meal/rest periods. Errors in Pay BCI will not make impermissible deductions from its Employees’ earnings. If an Employee believes that an improper deduction has been made, he/she should advise Payroll or Human 9 BC INTERNATIONAL GROUP, INC. EMPLOYEE HANDBOOK

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Resources, who will investigate and correct the deduction, if needed. Additionally, any questions regarding improper payment of wages shall be directed to Payroll or Human Resources. The Company will take whatever action it deems necessary to comply with the Salary Basis Test in the future. Alternatively, the Employee understands that his/her signature on this Employee Handbook also confirms their consent to any and all lawful deductions. 9: COMPENSATION Paydays Paychecks are issued on a bi-weekly basis for the previous two-week period (ending on Saturday). You will receive your paycheck from either your Supervisor, through the US Post Office, or through the BCI direct deposit program. Direct Deposit Direct Deposit is a way to deposit your earnings directly into your bank account. It is of no cost to you, and your pay is usually available to you on the payday, without having to make a trip to the bank. You may enroll for Direct Deposit by completing a direct deposit form, this includes providing a voided check. Contact Payroll or Human Resources for additional information. Go Green and Go Paperless BCI is proud to participate in Workforce Now, which is a paperless alternative for Employees to view their earnings statements and W-2 forms 24 hours per day, 7 days a week. Employees access their statements with ease and convenience through: https://workforcenow.adp.com, and have the ability to view/print out specific earning statement dates as needed. Please make sure to check off the box “I wish to no longer receive statements.” Contact Payroll for additional information. 10: INTEGRITY STATEMENT The success of BCI is attributable, in large part, to its strong relationships with our Partner Stores. In order to maintain our strong relationships with our Partner Stores, Employees must fully understand that each division is its own separate business entity. For example, The Fur Vault at Macy’s is a separate business entity from the Maximilian at Bloomingdale’s. Each Salon is owned and operated by the same parent company (BCI), just as the stores themselves, Macy’s and Bloomingdale’s, are owned and operated by the same parent company (Macy’s Inc.). To maintain the credibility and integrity of BCI, its Employees, and its product, as well as the credibility and integrity of the Partner Stores, no Employee is to engage in any type of 10 BC INTERNATIONAL GROUP, INC. EMPLOYEE HANDBOOK

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conversation with clients, Partner Store Employees, or outside vendors about any other division other than the division in which he/she is currently working. BCI has a vested interest in keeping our product and above all, our Employees safe. For this reason it is imperative and also a requirement that the identity and location of the Corporate Headquarters be kept confidential from any non-BCI Employees with the exception of the upper management of our Partner Stores. By enforcing this policy as it relates to our products and operations, we maintain these relationships, and ensure BCI’s credibility and integrity with all of its partner businesses. 11: STANDARDS OF CONDUCT Whenever people gather together to achieve goals, some rules of conduct are required to help everyone work together efficiently, effectively, and harmoniously. The purpose of these rules are not to restrict your rights, but rather to be certain that you understand what conduct is expected and necessary. BCI expects you to act in a mature and responsible manner at all times. Depending upon the circumstances, failure to comply with the following general standards may, in BCI’s sole discretion, may result in disciplinary action, up to and including termination of employment. Because it is not possible to list every type of inappropriate conduct, the following list is not exhaustive nor a limitation on BCI’s right to discipline or terminate its Employees: 1. Non-compliance with any BCI and/or Partner Store rule or policy. 2. Any action that is detrimental to BCI’s efforts to operate profitably. 3. Any action that is detrimental to BCI’s integrity. 4. Violation of Federal, State or Local laws. 5. Violation of security or safety rules or the failure to observe safety practices. 6. Negligence or any careless action that endangers the life or safety of another person. 7. Any discourteous or unprofessional conduct toward another person, including but not limited to clients, vendors, Partner Store Employees, or other Employees. 8. Using profane, abusive or rude language, attempting to threaten, intimidate, or coerce another person, physically assaulting another person, or spreading malicious gossip. 9. Dishonest acts, or the failure to report a dishonest act or plan, whether your knowledge of such an act or plan is obtained directly or indirectly. Dishonest acts include, but are not limited to, theft, or misappropriation of money, time, merchandise, or personal property. 10. Lying about anything dealing either directly or indirectly with your position at BCI. Looking to hide, manipulate, or twist information that directly or indirectly affects the Company in any form, whether verbal or written. 11 BC INTERNATIONAL GROUP, INC. EMPLOYEE HANDBOOK

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11. Actions that bring your integrity into question or give the appearance of impropriety. These include, but are not limited to, falsifying any BCI document—omitting or providing misleading information. 12. Any violation of BCI’s Harassment or Equal Employment Opportunity including, but not limited to, sexual or verbal harassment, retaliation, or interfering with, or failing to cooperate in, an investigation. 13. Retaliating against any Employee who makes a good faith complaint under BCI’s Harassment or Equal Employment Opportunity policies, or who assists in an investigation of a compliant. 14. The unauthorized use, purchase, sale, distribution, or possession of illegal drugs, alcoholic beverages, or other controlled substances while on the job, or being under the influence of illegal drugs or alcoholic beverages while on the job. 15. Carrying or having a weapon on BCI or Partner Store premises. 16. Conviction of a crime which, when considered on a case-by-case basis, can be construed to indicate that the continued presence of the employee would constitute a hazard to employees, customers or property. 17. Failure to report violations or suspected violations of The Standards of Conducts or any laws applicable to BCI’s business, including reports of alleged discrimination and/or harassment. 18. Failure to immediately report on-the job injuries to BCI’s Human Resources Department. 19. Failure to report damage to or an accident involving Company property or equipment to BCI’s Corporate Office. 20. Creating or contributing to immoral, unethical, unsafe, or unsanitary conditions. 21. Posting, removing, or altering any notices on BCI or Partner Store property without the permission of BCI or the Partner Store. 22. Abusing, destroying, damaging, defacing, or removing BCI or Partner Store property, tools or equipment; or abusing destroying, damaging, defacing, or removing the property or equipment of others that is on BCI or Partner Store premises. 23. Using Social Media, including but not limited to Facebook, Twitter, Google +, or tumblr, to slander BCI/Partner Stores or their Employees either directly or overtly, or to discuss BCI/Partner Stores proprietary information and/or trade secrets. 24. Posting inappropriate or lewd, pictures taken on BCI/Partner Store premises of Employees. Prohibited conduct includes posting inappropriate or lewd photographs of Employees on Social Media sites, including but not limited to Facebook, Twitter, Instagram, Google +, or tumblr. 25. Making an agreement with competitors in restraint of trade, including price fixing, resale price maintenance, unlawful boycotts, price discrimination, or other acts that violate applicable antitrust and trade practice laws. 12 BC INTERNATIONAL GROUP, INC. EMPLOYEE HANDBOOK

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26. Failure to enter time in or out, entering time in or out for another Employee, allowing another Employee to enter time in or out for you, manipulation, violation of BCI’s overtime policies, or any other violation of BCI’s or the Partner Store’s timekeeping rules. 27. Repeated unexcused absence from work, repeated unexcused tardiness in reporting to work, repeated late return from rest or meal periods, unauthorized absence from a work assignment, walking off the job, or any other abuse of work time. 28. The refusal to perform work assigned by a Supervisor, going against a Supervisor’s order without authorization, threatening a Supervisor with physical violence, verbally attacking a Supervisor with obscene, profane or abusive language; or any other acts of insubordination. 29. Unsatisfactory or careless work; failure to meet productivity or quality standards. 30. Sleeping or loitering during working hours. 31. Engaging in any conduct, whether on-duty or off-duty, which may adversely affect BCI, its reputation or the Employees work performance. 32. Using, disclosing, discussing, or providing to others BCI trade secrets, confidential information or knowledge related to Company business without proper authorization. Using trade secrets or proprietary or confidential information obtained from former employers or third parties, including but not limited to unauthorized client lists and email addresses. This shall not prohibit an Employee from disclosing such information to a government or law enforcement agency, if the Employee has reasonable cause to believe that the information discloses a violation of a Federal or State law, rule, or regulation. 33. Competing directly or indirectly with BCI; directly or indirectly maintaining an outside business or financial interest; or engaging in any other outside business or financial interest or activity that conflicts in any manner with the interests of BCI. 34. Engaging in any relationship that jeopardizes your ability to perform your job responsibly, safely, competently, and/or honestly. 35. Wearing or using BCI or Partner Store merchandise that has not been purchased (unless the Employee has received prior authorization from management to do so). 36. Tape recording or video recording, or attempting to tape record or video record other Employees without their knowledge or consent. Nothing in this list alters the at-will nature of your employment. Either you or the Company may terminate the employment relationship with or without reason, with or without notice, and in the absence of any violation of the above listed rules. 12: PERSONAL PRESENTATION STANDARDS BCI’s Personal Presentation Standards adhere to those of our Partner Stores. Employees should refer to the Personal Presentation Standards appropriate for their positions. 13 BC INTERNATIONAL GROUP, INC. EMPLOYEE HANDBOOK

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Remember, what may be appropriate and/or safe for one department may not be for another. Some departments may require different dress because of the work that is performed. Employees who fail to meet our Personal Presentation Standards may not be permitted to work until their appearance meets the standards. Any violation of this policy may result in disciplinary action, up to and including termination of employment. 13: CONFIDENTIALITY OF INFORMATION It is BCI’s policy to ensure that the operations, activities, and business affairs of the Company and its Employees, clients, and business partners are kept confidential to the maximum extent possible. In addition, BCI considers its relationships with its clients, Partner Stores, suppliers, vendors, consultants, directors, legal, and other advisors, as confidential and proprietary. During your employment with BCI, you may have access to a variety of confidential information. Confidential information includes, but is not limited to, records, lists, and knowledge of BCI’s clients, partners, suppliers, methods of operation, processes, trade secrets, methods of determination of prices, financial condition, profits, sales, net income, personnel, and any other proprietary information and materials. If you have any questions about what material is considered confidential, you should contact Human Resources. BCI Employees who, during the course of their employment, obtain non-public, proprietary, personal, information about BCI, its Employees, its clients (including their purchases), and/or its business partners (such as vendors) are required to handle such information in the strictest confidence. Employees may not speak about matters pertaining to any BCI or Partner Store Employees or business matters with current or former Employees in a manner that can be deemed as gossip or malicious in nature. It is expected that Employees will not, directly or indirectly, share or disclose any non-public, propriety or personnel information about BCI, Partner Stores, vendors, clients, or any of its Employees to private individuals, organizations, or government agencies, except where required in the normal course of business or by law. Please be advised upon separation, it is expected that former Employees will not, directly or indirectly, share or disclose any non-public, propriety or personnel information about BCI, Partner Stores, vendors, clients, or any of its Employees to private individuals, organizations, or government agencies, except where required in the normal course of business or by law. Any violation of this policy may result in disciplinary action, up to and including termination of employment.

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14: COMPANY PROPERTY In order to assist Employees in performing their jobs, the Company provides certain equipment and materials including, but not limited to, e-mail, voice mail, telephones, smartphones, PDA’s, tablets, Internet, postage, copy and fax machines, personal computers/notebooks/laptops/tablets, printers, scanners, other hardware/software, mainframe access and networks, and communications media. Such equipment, materials, services, and communications systems are and shall remain the property of the Company at all times. The Company reserves the right to access, inspect, review, copy, remove, change, or disclose the contents of such equipment, materials, services, and communication systems as it deems appropriate, including, but not limited to, monitoring the Internet, e-mail system, and all Company owned device usages, and Employees should have no expectation of privacy with these systems and devices. No Employee can copy or duplicate any BCI or Partner Store materials unless the copied material is to be used for Employee’s work responsibilities. Any violation of this policy may result in disciplinary action, up to and including termination of employment. Client Information and Client Books Please be advised that all client books and the information contained within remain the property of BCI. Because of the sensitive nature of these books, they are not to be removed from the Salon. Employees should take all necessary steps to prevent unauthorized access to this information. Upon separation from BCI it will be necessary to return the client book and all information contained within to the Salon Manager or another authorized representative of BCI. Federal and State laws, as well as our own data security policies protect certain client charge account and personal information. Client information including personal and account information is the property of the Company, and does not belong to an individual Employee. Therefore, our Employees are not authorized to keep any client information including personal and account information on devices including, but not limited to, personal PDA’s, smartphones, or on any personal computer equipment. Employees cannot add a BCI provided e-mail account to their personal device without express written authorization from Corporate Supervisor. Employees are not authorized to e-mail any client’s from their personal email account; all emails to clients must be sent from BCI provided e-mail addresses. While the client book remains in your possession it will be your responsibility to continually update your client’s information. If used correctly, this client book will be an invaluable asset to your success as a professional sales Employee of BCI. BCI reserves the right to review client books at any time to ensure the Company’s superior customer service standards are being met. Employees may not use the client book or the information associated with it for any personal business or benefit.

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Employees are also prohibited from using such information for the purpose of advancing any private interest, for personal gain, or in any way contrary to or in conflict with BCI’s interests. There is never to be any photocopying or duplicating of client files unless needed for work purposes. Client books are never to be photocopied or duplicated unless Employee is transferring client information to a new book. Any violation of this policy may result in disciplinary action, up to and including termination of employment. Use of Phone Systems The telephone lines at BCI and in Partner Stores must remain open for business calls and to service our clients. Employees are not to use the telephone line for personal calls—incoming or outgoing—no long distance calls are to be made on BCI phones that are not strictly business related. Employees are reminded to be courteous to other users of the telephone system and always to conduct themselves in a professional manner. Voice messages are sometimes misdirected or forwarded and may be viewed by persons other than the intended recipient. Employees should treat voice mail communications with no less care, judgment and responsibility than they would use for letters or internal memoranda written on Company letterhead. While at work, Employees are expected to exercise discretion in using personal cellular phones and other personal communication devices. Personal calls, texting and/or e-mailing during work hours, regardless of the phone used, can interfere with Employee productivity and be distracting to others. Excessive use of cellular phones in such circumstances, or use that otherwise disrupts the Company’s operations, may result in to disciplinary action up to and including termination of employment. Flexibility will be provided in circumstances demanding immediate attention. The Company will not be liable for the loss of personal cellular phones brought into the workplace. Any violation of this policy may result in disciplinary action, up to and including termination of employment. Smartphones, PDA’s, Tablets, and Laptops For work purposes, BCI may issue Employees a smartphone, PDA, tablet, or laptop. While the Employee is in possession of their Company issued device, he/she must understand: 

The device at all times must be treated as BCI property and as a business device.



The Company can ask to see the device at any time and view all of the content, including, but not limited to, text messages, photographs, or downloads.



Employee should have no expectation of privacy while using the device.



The Company can monitor the use of the device. 16

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

The Company can access the device to locate the Employee.



Employee is responsible for maintaining and caring for the device, meeting the standards of BCI.



Employee is responsible for maintaining the condition of the device and will be responsible for any negligent acts, including, but not limited to, losing the device, breaking the device, or damaging the device.



Employee will be expected to pay for any repairs to the device or for replacement of device based on their negligent actions.



The Company prohibits the use of these devices in ways that are harassing, disruptive, offensive to others, or harmful to morale.



The Company prohibits the use of these devices while Employee is operating a vehicle. Employee must follow all Federal, State, and Local laws.



Employee is responsible for the use and content of the device. Any questionable content or use is solely the responsibility of the Employee.



Employee cannot use the device for any illicit purposes.



Employee must restrict the content that they access on the device and cannot use the device for purposes including but not limited to, viewing or making of pornographic materials, sexting, inappropriate or questionable photographs, gambling, or harassing messages.



Employee has the ability to download applications to the Company device; however, no applications of sexual or pornographic nature should be downloaded or accessed on the device. Any application that will contribute to the aforementioned cannot be downloaded on this device.



Employee should understand that data, phone minutes, or text messages are not unlimited.



Unless authorized by the Corporate Supervisor, phones are not to be used for International Calls. If Employee is traveling internationally, he/she must see the Corporate Supervisor to discuss.

If the Company deems that the content or use of the device violates any of the Company’s policies, including, but not limited to, the Policy Against Harassment, disparages BCI, its Employees (current and former), its clients, Partner Stores, and/or its vendors; and/or discloses confidential and proprietary information of BCI, the Employee will be required to immediately surrender the device. Any violation of this policy may result in disciplinary action, up to and including termination of employment.

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Computers, Printers, and Fax Machines For work purposes, BCI supplies Employees with the use of computers, printers, and fax machines. These devices should be used for job-related purposes only; use for any other purpose is prohibited. In addition, Employees need to be aware of the following: 

Employee is responsible for maintaining and caring for the device, meeting the standards of BCI.



Employee is responsible for notifying BCI’s IT Department to report any issues with the devices.



Employee is responsible for maintaining the condition of the device and will be responsible for any negligent acts, including, but not limited to, breaking or damaging the device.



Employee should have no expectation of privacy while using the device.



The Company can monitor the use and content of the device.



The Company prohibits the use of these devices in ways that are harassing, disruptive, offensive to others, or harmful to morale.

Moreover, the Company strives to maintain a workplace free of harassment and sensitive to the diversity of its Employees. Therefore, the Company prohibits the use of computers in ways that are harassing, disruptive, offensive to others, or harmful to morale. Any violation of this policy may result in disciplinary action, up to and including termination of employment. E-mail Neither the Salon e-mail nor the Salon Manager’s e-mail, or any other BCI provided e-mails should in anyway be used for personal e-mail purposes. They also cannot be used for creating accounts on websites or social media sites. They are only to be used for BCI or Partner Store business. Violation of this policy may be grounds for disciplinary action up to and including termination of employment. Employees are reminded to be courteous to other users of these systems and always to conduct themselves in a professional manner. E-mail messages are sometimes misdirected or forwarded and may be viewed by persons other than the intended recipient. Employees should treat e-mail communications with no less care, judgment and responsibility than they would use for letters or internal memoranda written on Company letterhead. Moreover, the Company strives to maintain a workplace free of harassment and is sensitive to the diversity of its Employees. Therefore, the Company prohibits the use of computers and the e-mail system in ways that are disruptive, offensive to others, or harmful to morale. Employees should have no expectation of privacy in their use of the Company email system. Emails may be viewed by the Company and/or stored on the Company’s computer systems even if Employees delete the emails from their personal inboxes. 18 BC INTERNATIONAL GROUP, INC. EMPLOYEE HANDBOOK

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No Employee is authorized to use their personal e-mail account to conduct Company business, including but not limited to 1) e-mailing clients and 2) e-mailing work product to BCI or Partner Store Employees. Any violation of this policy may result in disciplinary action, up to and including termination of employment. Internet The Internet should be used to access job-related information only. At all other times the use of the Internet is prohibited. In addition, the following uses of the Internet, during working hours are strictly prohibited: 

Access, retrieval, or printing of text and graphics which exceeds the bounds of generally accepted standards of good taste and ethics.



Engaging in personal commercial activities on the Internet, including offering services or merchandise for sale or ordering services or merchandise from on-line vendors.



Using on-line e-mail accounts (Gmail, Hotmail, Yahoo, AOL, etc.) for BCI correspondence, personal correspondence, or any other correspondence.



Visiting internet sites that are not of a work nature, including but not limited to, pornography, dating sites, YouTube, fantasy sports sites, on-line shopping, message boards, or social media sites.



Streaming of music, movies, television shows, or videos.

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Downloading of ebooks.



Downloading programs or apps except when they will be used to serve an approved BCI function.



Installing “plug-ins” and/or downloading video and voice files from the Internet except when they will be used to serve an approved BCI function.



Dissemination or printing of copyrighted materials (including articles and software) in violation of copyright laws.



Operating a business, usurping business opportunities, soliciting money for personal gain, or searching for employment outside of BCI.



Engaging in any unlawful activities or any other activities which would in any way discredit BCI.

Moreover, the Company strives to maintain a workplace free of harassment and sensitive to the diversity of its Employees. Therefore, the Company prohibits the use of computers and the email system in ways that are harassing, disruptive, offensive to others, or harmful to morale. Any violation of this policy may result in disciplinary action, up to and including termination of employment. 19 BC INTERNATIONAL GROUP, INC. EMPLOYEE HANDBOOK

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Social Networking The Company recognizes that Employees may wish to use certain social networking sites in order to promote the Company and/or its services. Generally, Employees are permitted to state that they are employed by BCI and in what capacity without permission from the Company. If a Salon Employee wants to state where they are employed, the Company prefers that they state the Partner Store and Division they are located in rather than BCI. Unless specific written permission is granted, no Employee may access any social networking site, including but not limited to Facebook, LinkedIn, MySpace, and/or Twitter on work time. Employees who are granted special permission to access these websites during work time that may only access social networking sites for work purposes while on work time. No Employee may start or maintain a social networking account purporting to represent the Company or Partner Stores without direct authorization from BCI. Although social networking sites can have many positive benefits, use of social networking sites can sometimes cause issues in the workplace. It is BCI’s goal to insure that the workplace is harmonious and productive. Accordingly, BCI reserves the right to monitor Employees’ social networking sites to insure compliance with this policy. If the Company receives a complaint about the content on an Employee’s social networking page or has reasonable suspicion to believe that the content on an Employee’s social networking page violates Company policy, BCI has the right to view all postings on Employees social media sites that are open to the public. Unless an Employee’s social media account is private, they have no expectation of privacy and BCI can act accordingly in reviewing all material posted. If the Company deems that the reviewed content violates any of the Company’s policies, including, but not limited to, the Policy Against Harassment, slanders BCI, its Employees (current and former), its clients, Partner Stores, and/or its vendors; and/or discloses confidential and proprietary information of BCI, the Employee will be immediately required to remove all such content, and may result in disciplinary action, up to and including termination of employment. In addition to the issues arising from slanderous, harassing, and otherwise inappropriate postings, Supervisors should be aware that Employees may view a Supervisor’s postings as showing favoritism toward certain Employees or groups of Employees. In order to avoid the appearance that some Employees are treated more favorably than other Employees, Supervisors are prohibited from “friending” subordinate Employees on social networking sites. BCI recognizes that Employees and former Employees may seek recommendations from a Company Employee through social networking sites. Supervisors must refer such requests to Human Resources for approval before providing any such recommendations. Employees should have no expectation of privacy while using BCI equipment or facilities for any purpose, including authorized blogging or use of social networking sites. Contact your immediate Supervisor or Human Resources for more information about use of social networking sites. 20 BC INTERNATIONAL GROUP, INC. EMPLOYEE HANDBOOK

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Any violation of this policy may result in disciplinary action, up to and including termination of employment. 15: VIOLENCE IN THE WORKPLACE BCI is committed to providing a safe and secure work environment for its Employees and has a zero-tolerance policy for workplace violence. The Company does not tolerate violence or the threat of violence against any Employee, visitor, or other individual in, or arising out of, the workplace. This prohibition also includes statements made in jest, horseplay, or any activity that can be perceived as intended to, or which may potentially result in, physical harm to any individual or physical damage to Company property. Should you witness any acts of violence or become concerned that a situation may turn violent, remove yourself from the situation and alert your Supervisor or your Partner Store’s Security team immediately. Engaging in any violent acts or threats of violence in the workplace will result in disciplinary action, up to and including immediate termination of employment. This list of behaviors, while not inclusive, provides examples of prohibited conduct: 

Causing physical injury to another person.



Making threatening remarks.



Aggressive or hostile behavior that creates a reasonable fear of injury to another person or subjects another individual to emotional distress.



Intentionally damaging Employer property or the property of another Employee.



Possession of a weapon while on Company property or while on Company business.



Committing acts motivated by, or related to, sexual harassment, or domestic violence.

16: SUBSTANCE ABUSE BCI has a longstanding and vital commitment to providing a safe, quality-oriented, and productive work environment. Being under the influence of a drug or alcohol on the job poses serious safety and health risks to the Employee and to all those who work with the Employee. The use, sale, purchase, transfer, or possession of an illegal drug in the workplace, and the use, possession, or being under the influence of alcohol also poses unacceptable risks for safe, healthy, and efficient operations. For these reasons, BCI recognizes its obligations to its Employees to provide an environment that is free of the influence of illegal drugs and alcohol, and will endeavor through this policy to provide drug-and alcohol-free services. While engaged in BCI’s business or on BCI or Partner Store premises, no Employee may use, possess, distribute, sell, or be under the influence of alcohol or illegal drugs. The legal use of prescribed drugs is permitted on the job only if it does not impair an Employee’s ability to 21 BC INTERNATIONAL GROUP, INC. EMPLOYEE HANDBOOK

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perform the essential functions of the job effectively and in a safe manner that does not endanger other individuals in the workplace. To the extent an Employee is undergoing prescribed medical treatment with any drug (prescribed or over-the-counter) that impairs his/her ability to perform the job or poses a safety risk to themselves or others, the Employee must report this treatment to their Supervisor or Human Resources. Definitions Alcohol means any beverage that contains ethyl alcohol (ethanol), including but not limited to beer, wine, and distilled spirits. Company premises or company facilities means all property of BCI including, but not limited to , the offices, facilities, and surrounding areas on BCI-owned or -leased property, parking lots, and storage areas. The term also includes BCI-owned or -leased vehicles and equipment wherever located. Contraband means any article, the possession of which on BCI premises or while on BCI business, causes an Employee to be in violation of BCI work rule or law. Contraband includes illegal drugs and alcoholic beverages, drug paraphernalia, lethal weapons, firearms, explosives, incendiaries, stolen property, counterfeit money, and pornographic materials. Drug testing means the scientific analysis of urine, blood, breath, saliva, hair, tissue, and other specimens of the human body for the purpose of detecting a drug or alcohol. Illegal drug means any drug which is not legally obtainable; any drug which is legally obtainable but has not been legally obtained; any prescribed drug not legally obtained; any prescribed drug not being used for the prescribed purpose; any over-the-counter drug being used at a dosage level other than recommended by the manufacturer or being used for a purpose other than intended by the manufacturer; and any drug being used for a purpose not in accordance with bona fide medical therapy. Examples of illegal drugs are cannabis substances, such as marijuana and hashish, cocaine, heroin, methamphetamine, phencyclidine (PCP), and so-called designer drugs and look-alike drugs. Legal drug means any prescribed drug or over-the-counter drug that has been legally obtained and is being used for the purpose for which prescribed or manufactured. Reasonable belief means a belief based on objective facts sufficient to lead a prudent person to conclude that a particular Employee is unable to satisfactorily perform his/her job duties due to drug or alcohol impairment. Such inability to perform may include, but not be limited to, decreases in the quality or quantity of the Employee’s productivity, judgment, reasoning, concentration and psychomotor control, and marked changes in behavior. Accidents, deviations from safe working practices, and erratic conduct indicative of impairment are examples of “reasonable belief” situations.

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Under the influence means a condition in which a person is affected by a drug or by alcohol in any detectable manner. The symptoms of influence are not confined to those consistent with misbehavior, nor to obvious impairment of physical or mental ability, such as slurred speech or difficulty in maintaining balance. A determination of being under the influence can be established by a professional opinion, a scientifically valid test, such as urinalysis or blood analysis, and in some cases by the opinion of a layperson. Drug and Alcohol Testing of Employees In furtherance of this policy, the Company reserves the right to, and may, at its sole discretion, require an Employee to undergo a drug or alcohol screen when it reasonably suspects the Employee to be under the influence of alcohol or illegal/non-prescription drugs while working or otherwise on the Company’s premises. This includes but is not limited to all times during the workday, including breaks, lunch, and those periods of time when Employees are off premises performing work. An Employee who is requested to undergo drug or alcohol screening and who refuses to do so may be disciplined, including, but not limited to suspension or termination. Discipline Any violation of this policy may result in disciplinary action, up to and including termination of employment. BCI will provide to any Employee, upon request and at no cost to the Employee, information concerning local resources that are available for the treatment of drug and alcohol related problems. BCI’s policy is intended to comply with all State laws, rules and regulations governing drug testing and is designed to safeguard the Employee’s privacy rights to the fullest extent of the law. BCI recommends that each Employee review the specific state addenda annexed hereto for additional information regarding BCI’s Any violation of this policy may result in disciplinary action, up to and including termination of employment. 17: NO SOLICITATION / NO DISTRIBUTION To spare coworkers from unwanted and unwelcome written materials and requests to buy, sell, or donate items and/or cash, BCI prohibits the solicitation or distribution of literature concerning these activities during working time. This prohibition also covers solicitation or distribution of literature concerning such activities via the Company’s e-mail network or intranet portal. This does not include the time before or after work, meal or rest periods. Trespassing, soliciting or distribution of literature by non-Employees on the Company’s premises and throughout all Company-operated facilities (including retail stores, offices, and service/distribution centers) is prohibited at all times. If any person attempts to solicit you for any reason in violation of these rules, please report it immediately to your Supervisor or Human Resources. 23 BC INTERNATIONAL GROUP, INC. EMPLOYEE HANDBOOK

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18: MEDIA RELATIONS No BCI Employee is permitted to communicate with members of the press in his/her capacity as a BCI Employee without receiving direct clearance from BCI’s Corporate Team. Employees who receive requests from, or are contacted by the media, regarding any issue related to their employment, the Company, services, and merchandise should notify their Divisional Contact immediately. 19: CONTESTS BCI often sponsors contests for its Employees. The following are guidelines governing receipt of contest prizes: 

Employees must be actively working and in good standing with BCI in order to receive contest prizes.



No returns, exchanges (except for size), upgrades, or substitutions of awarded prizes are allowed.



Trips are to be taken as vacation time unless noted as an exception upon announcement of the contest.



Taxes and withholdings may be applicable and are solely the Employee’s responsibility. When BCI sponsors a contest, an Employee’s paycheck will be subject to all appropriate taxes, withholdings, and deductions relating to the contest.

Falsification of sales/returns or of any contest criteria will result in disqualification and may result in disciplinary action, up to and including termination of employment. 20: TALENT SEARCH AND REFERRAL PROGRAM AWARD BCI is always looking for enthusiastic, dedicated, and hard-working talent to join the Company. BCI invites all Employees to participate in our recruiting efforts to find the best talent by referring potential candidates for Salon Manager, Sales Associate, and Corporate positions. Eligibility Requirements: 

All currently employed BCI Employees are eligible to participate in BCI’s Talent Search and Employee Referral Program.



Employees may refer candidates for all open management and non-management, Full Time or Part Time positions at BCI.



The Talent Search and Referral Form must be submitted to Human Resources within thirty (30) days of the hire to be eligible for the program reward.

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How to Participate: 

Complete a Talent Search/Employee Referral Form (found on BCI’s website and located in the HR download section). The Employee Referral Form must be completed accurately and in its entirety for consideration.



Fax completed Talent Search/Employee Referral Form to Human Resources at (973) 826-1153, Attention: Human Resources.



Human Resources will contact referring Employee only if the referred candidate is hired as a member of the BCI Team.

Talent Search and Referral Program Award: Management Position Referring Employee is eligible to receive up to a $500.00 award for each managerial candidate referred and hired in accordance with the guidelines below: After 30 Days of Employment with BCI $250.00

After 1 Year of Employment with BCI $250.00

Total $500.00

Non-Management Position Referring Employee is eligible to receive up to a $300.00 award for each non-managerial candidate referred and hired in accordance with the guidelines below: After 30 Days of Employment with BCI $150.00

After 1 Year of Employment with BCI $150.00

Total $300.00

Important Note To All BCI Employees Any BCI Employee who has made a successful referral must be currently employed with BCI at the time of the referred candidate’s date of hire and at the time of each award installment to receive the full amount of the award. Supervisors are expected to recruit as a part of their job responsibilities and therefore are not eligible for awards on their own hires. Supervisors however are eligible for referrals they make outside of their Department/Salon. Any monetary award received through BCI's Talent and Employee Referral Program is subject to all applicable Federal and State taxes. BCI's Talent and Employee Referral Program is subject to change or discontinuation at any time, at the sole discretion of the Company.

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21: HUMAN RESOURCES RECORDS Any change in status, such as a new address, telephone number, insurance beneficiaries, number of dependents, emergency contact, marital status, or expiration and/or renewal of work authorization documents must be reported to Human Resources and a Payroll Status Change completed to ensure that your personnel file is up-to-date at all times. If an Employee would like to review his/her BCI Employee File he/she must arrange a time to meet with Human Resources. If an Employee is requesting a copy please contact Human Resources to discuss. Requests must be made seven (7) business days in advance in writing. Federal or State laws that provide greater protection or benefits shall take precedence over these guidelines wherever applicable, please refer to your state’s addendum. 22: RELEASE OF EMPLOYEE INFORMATION All requests for employment references for any current or former BCI Employee must be directed to Human Resources. In the event that Human Resources receives a written request for a reference, only dates of employment and positions held will be confirmed. No Employee is permitted to provide an oral or written employment reference for any current or former Company Employee, or provide personal information concerning a current or former Employee. All inquiries must be directed to Human Resources. 23: BENEFITS AVAILABLE AFTER 90 DAYS OF EMPLOYMENT For the following benefits, BCI will calculate paid time off based on the average hours worked per week for the previous six (6) months of employment divided by five (5) to determine the average hours per day. Bereavement BCI provides all eligible Employees paid time off towards bereavement of an immediate family member. In the event of a death of an Employee’s immediate family member (mother/mother-in –law, father/father-in-law, spouse, civil union or domestic partner, child, stepchild, sibling, stepparent, or grandparent) all Full Time and Part Time Employees are eligible for up to three (3) paid bereavement days. If an Employee cannot report to work due to the death of an immediate family member, the Employee is required to notify his/her Supervisor of the intended absence as soon as possible, but not later than the scheduled work start time. Bereavement pay will not be paid in addition to any other allowable pay for the same day, such as holiday, personal, or sick pay. However, if a death occurs while an Employee is on vacation, days will be granted to compensate for those days used as bereavement days. BCI requires proof of death and the Employee’s relationship to the deceased in order to be paid.

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Jury Duty BCI recognizes your legal and civic responsibility to serve on a jury or grand jury, if summoned to do so. All Full Time and Part Time Employees are eligible for Jury Duty pay. Employees that are called to serve must notify their Supervisor and Human Resources within forty-eight (48) hours of receipt of the jury summons. Employees should provide their court issued checks, for time served, which will act as proof of time served on jury duty. In exchange for your court issued checks BCI will include as part of your regular pay, pay for time served on jury duty up to a maximum of four (4) weeks. This will be paid at your regular pay rate on average hours worked. Paid Holidays Full Time and Part Time Employees are eligible for the following six (6) paid holidays: New Year’s Day Memorial Day

Independence Day Labor Day

Thanksgiving Day Christmas Day

Paid holidays are paid at the Employee’s current rate of pay at the time the holiday occurs and will be based on the average hours worked. If an Employee’s scheduled day off falls on one of the six (6) paid holidays, he/she will be paid for the holiday. Please note that holiday pay is not paid as overtime. In order to be paid for any holiday, Employees must work on their scheduled days preceding and following the holiday, unless the Employee’s Supervisor has approved time off in advance. If an Employee works on a holiday, they will be paid time and a half for the hours worked and will be granted an alternate day off with pay that must be used within sixty (60) days of the holiday. If an Employee is on vacation during a week that includes a paid holiday, the Employee will receive holiday pay on the day that the holiday falls and not vacation pay. For example if they were on vacation from July 2nd through July 6th, July 4th would count as holiday pay and not vacation pay. They would be using four vacation days during this period and not five. Salon Managers should contact Human Resources to discuss how they will handle their holiday time. Federal or State laws that provide greater protection or benefits shall take precedence over these guidelines wherever applicable, please refer to your state’s addendum. Sick Days All Full Time and Part Time Employees are eligible for up to five (5) sick days each year. If an Employee cannot report to work due to illness, the Employee is required to notify his/her 27 BC INTERNATIONAL GROUP, INC. EMPLOYEE HANDBOOK

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Supervisor of the intended absence each day prior to the start of the scheduled work start time to the extent practical. BCI reserves the right to require a physician’s note, or other medical evidence, for any absence due to illness. Sick days cannot be carried over from one year to the next and are not paid out upon separation of employment, unless otherwise required by law. Sick days are based on your anniversary date and are calculated based on the average hours worked. 24: BENEFITS AVAILABLE AFTER SIXTH MONTH OF EMPLOYMENT Personal Days BCI provides all eligible Full Time and Part Time Employees time off during the year to be used as personal time. All Full Time and Part Time Employees are eligible for up to two (2) paid personal days per year. Following two (2) years of service, Full Time and Part Time Employees are eligible to take an additional personal day for three (3) personal days per year. If an Employee cannot report to work due to a personal reason, the Employee is required to notify his or her Supervisor of the intended absence before the scheduled start time to the extent practical. Personal days are based on your anniversary date and calculated based on the average hours worked. Personal days cannot be carried over from one year to the next and are not paid out upon separation of employment, unless otherwise required by law. Vacation Days BCI provides all eligible Employees time off during the year to be used as vacation time. Employees must submit all requests for time off thirty (30) days in advance to the extent practical. Please note that vacation days are based on a 5-day workweek, and are calculated on average hours worked. Vacation time cannot be carried over from one year to the next. Federal or State laws that provide greater protection or benefits shall take precedence over these guidelines wherever applicable, please refer to your state’s addendum. All Full Time and Part Time Employees are eligible for vacation time based on date of hire and duration of continuous service up to a maximum as follows: Non-Manager Employees Six month anniversary

1 Week

One year anniversary

2 Weeks

Two year anniversary

2 Weeks

Five year anniversary

3 Weeks 28

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Twenty year anniversary

4 Weeks

Twenty-five year anniversary

5 Weeks

Manager or Manager level Employees Six month anniversary

1 Week

One year anniversary

2 Weeks

Two year anniversary

2 Weeks and 3 Days

Three year anniversary

3 Weeks

Four year anniversary

4 Weeks

Twenty-five year anniversary

5 Weeks

Example: 

John Smith becomes a Full Time Employee on June 1st.



On December 1st, his six month anniversary, he becomes eligible for 1 week of vacation. He must take this 1 week of vacation prior to the start of his one year anniversary.



At his one year anniversary he earns 2 weeks of vacation, which he must use prior to the start of his two year anniversary.

Time-off must be scheduled after the Salon’s End of Season Sale and before Columbus Day. In addition, approval of time-off is based on the needs of the business and proper coverage in the Salon. Please see your Supervisor or contact Human Resources with any questions. Important Note: If there is a separation of employment and the Employee is rehired within ninety (90) days of separation, the Employees anniversary date will be his/her original hire date. If the Employee is rehired ninety (90) days after his/her employment is terminated the rehire date shall serve as the anniversary date. Request for Absence Managers 

Salon Managers are expected to work all events.



Must verify time available prior to submitting their request via the BCI website.



It is his/her responsibility to see if request has been approved.



If his/her request was denied, time off cannot be taken. 29

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

If a request is made for unpaid time it must be done in writing and directed to his/her Divisional Contact.

Full Time and Part Time Employees 

All Employees will submit their Request Form to their Supervisor for approval. Request Form is available on the BCI Website.



In Salons, the Supervisor will then file the request at the store level.



In Service Centers, the Supervisor will then file the request with the bi-weekly Payroll.



BCI Corporate Employees will bring directly to Payroll.

25: FAMILY AND MEDICAL LEAVE ACT (FMLA) In accordance with requirements of applicable Federal and State law, BCI will provide leave to eligible Employees requiring time off for the following and any other qualified reasons that may currently or become required: 1. to care for the Employee’s child after birth, or placement for adoption or foster care (“family leave”); 2. to care for the Employee’s spouse, minor or disabled child, or parent, who has a serious health condition (“family leave”); 3. for a serious health condition that makes the Employee unable to perform the essential functions of their job (“medical leave”); 4. Because of any qualifying exigency arising out of the fact that the spouse, son, daughter, or parent of the Employee is on active duty, or has been notified of an impending call or order to active duty, in the Armed Forces in support of a contingency operation (qualifying exigencies may include attending certain military events, arranging for alternative childcare or parental care, addressing certain financial and legal arrangements, attending certain counseling sessions, and attending post-deployment reintegration briefings); or 5. To care for a covered service member with a serious injury or illness. “Covered service member is defined as: (1) a current member of the Armed Forces, including a member of the National Guard or Reserves, who is undergoing medical treatment, recuperation or therapy, is otherwise in outpatient status, or is otherwise on the temporary disability retired list, for a serious injury or illness; or (2) a veteran who was discharged or released under conditions other than dishonorable at any time during the five-year period prior to the first date the eligible Employee takes FMLA leave to care for the covered veteran, and who is undergoing medical treatment, recuperation, or therapy for a serious injury or illness. 30 BC INTERNATIONAL GROUP, INC. EMPLOYEE HANDBOOK

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Eligibility Employees are eligible to receive up to twelve (12) weeks of unpaid leave for reasons 1, 2, 3, and 4 above and twenty-six (26) weeks for reason 5 in a rolling forward twelve (12) month period under the Family Medical Leave Act (“FMLA”), if they have been employed at BCI for at least twelve (12) months (need not be consecutive), and have actually worked at least 1,250 hours during the preceding twelve (12) month period, and work at a site with at least fifty (50) Employees within seventy-five (75) miles. However, during that single twelve (12) month period, an eligible Employee shall only be entitled to a maximum combined total of twenty-six (26) weeks of all kinds of FMLA leave. The twelve (12) month period begins with the commencement of any family/medical/service member exigency/service member medical leave taken. Since, in some states, Employees may be entitled to additional leave, benefits and rights, Employees considering leave should contact Human Resources for further information. Form of Leave Leave may be taken: 

Consecutively;



Intermittently (in separate blocks of time), or on a reduced leave schedule (fewer hours in a day or days in a week), when medically necessary, in the event of the Employees’ serious health conditions or qualifying family member.

Employees must make a reasonable effort to schedule medical treatment or other basis for intermittent or reduced schedule leave so as not to disrupt BCI’s operations. Employees who wish to take intermittent or reduced schedule leave may, at BCI’s discretion and unless prohibited by law, be transferred temporarily to an available position for which they are qualified and for which they will receive equivalent pay and benefits, in which the need for planned recurring leave and/or a reduced work schedule can better be accommodated. Notice and Procedures When planning a leave, Employees should make all reasonable efforts to minimize the disruption of BCI’s operations. Employees seeking leave, to the extent that such leave is foreseeable, must provide at least thirty (30) days prior notice. In emergency circumstances, Employees must provide such notice as soon as practicable. Written request forms are available from, and must be submitted to, the Human Resources Department at the time of the notice to BCI. Human Resources will be responsible for granting or denying a request for leave. In addition, Employees will receive from the Human Resources department an Employer Response letter detailing the Employee’s obligations while on leave, if leave was granted. At the time leave is approved Employees shall be provided with an indication of the number of hours, days, or weeks of leave that will be counted as FMLA leave if known. 31 BC INTERNATIONAL GROUP, INC. EMPLOYEE HANDBOOK

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Use of Vacation and Sick Time Employees taking leave may be required to exhaust all accrued paid vacation. In addition, Employees taking leave for their own serious health condition, or for the serious health condition of a family member, may be required to exhaust their accrued sick leave. The remainder of their leave will be unpaid. Use of sick time or vacation will not extend the length of any leave. In addition, depending on the circumstances, Employees taking medical leave may be entitled to receive short-term disability or workers’ compensation benefits, which pay a portion of normal compensation. Time out on workers’ compensation and temporary disability shall run concurrently where appropriate with leave. Where an Employee is receiving workers’ compensation or temporary disability benefits, the Employee will not be required to simultaneously exhaust accrued sick or vacation leave, but Employees may be permitted to supplement workers’ compensation and short-term disability pay with accrued paid time off. Maintenance of Health Benefits For eligible Employees on leave BCI will continue to maintain coverage under its health benefits plan for up to twelve (12) weeks, or twenty-six (26) weeks in the case of leave for a covered service member. However, due to the fact that Employees normally pay a portion of their health benefits, Employees must continue to make these payments during the period of leave. If an Employee fails to keep up to date with group health insurance premium payments, he/she risks losing health insurance coverage. Employees, at the sole discretion of BCI, may be granted additional leave with or without BCI’s continuation of such benefits. Medical Certification Employees requesting leave to care for a seriously ill family member, or for their own serious health condition, must provide BCI with a written certification from the health care provider. Health Care Provider Certification Forms are available from Human Resources. In the event that the Health Care Provider Certification Form is not deemed sufficient, the Employee shall be provided with written notice and shall be allowed seven days to cure the deficiency. Human Resources may request a healthcare provider to clarify or authenticate information provided. BCI reserves the right to require Employees to obtain second or third medical opinions, at the Company’s expense, in order to determine the necessity of leave. Failure to provide the certification required by BCI and/or correct any deficiencies will result in the delay or denial of leave, or in some circumstances, denial of reinstatement. It is the responsibility of the Employee, and not their physician, to ensure that forms are completed in a timely manner. Certifications for service member exigency and service member medical leave must also be completed as appropriate, and are available from Human Resources. Employees may also be required to provide recertification of a serious health condition, as well as periodic reports of their status and intent to return to work. In all cases, BCI may request recertification of a medical condition every six (6) months. If a serious health condition lasts 32 BC INTERNATIONAL GROUP, INC. EMPLOYEE HANDBOOK

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beyond a single leave year, BCI may require a new certification in each subsequent leave year in which the Employee takes FMLA leave. Reinstatement Upon expiration of leave, BCI will reinstate eligible Employees, except those who would have been otherwise separated from their employment had they not taken leave, to their same or an equivalent position, with no loss in salary, benefits, or other terms and conditions of employment. Employees permitted to remain on leave past twelve (12) weeks (or twenty-six (26) weeks, if applicable), which extension may be granted at BCI’s sole discretion, may be reinstated to a position, if practicable, which may or may not be equivalent to their prior position. However, if any Employee fails to return to work at the expiration of the leave and has not received authorization for an extension, he/she will be considered to have abandoned his/her position and will not be eligible for terminal benefits pay, except if extenuating circumstances apply. Moreover, if an Employee accepts other full-time employment (except work done prior to the leave) during a family/medical/service member exigency/service member medical leave or misrepresents facts to obtain such a leave, the Employee will not be returned to active status and will be considered to have abandoned his/her position and will not be eligible for terminal benefits pay. Before returning to work, Employees on medical leave must obtain medical certification indicating that they may perform the essential functions of their position (a copy of such functions will be provided to the Employee), with or without reasonable accommodation. If an Employee is out on FMLA leave during his/her anniversary, the benefits available at the Employee’s anniversary date will become available upon reinstatement without a result in loss of any employment benefit accrued prior to the start of leave. Employees should contact Human Resources for further information about entitlement to leave and the required procedures. Important Note: This policy supersedes all prior policies regarding family/medical leave, and is intended to comply with current Federal Family and Medical Leave Act and applicable State laws. As such, this policy shall be construed in all cases consistent with such statutory requirements. BCI reserves the right to amend any portion of this policy at its sole discretion, and to apply all provisions and defenses set forth in the current applicable law, whether or not specifically set forth in this policy. 26: MILITARY LEAVE It is the Company’s policy to grant an unpaid leave of absence to Employees who are eligible for military leave in accordance with Federal and State law.

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27: HEALTH AND WELLNESS Safety and Health BCI is committed to protecting the health and safety of its Employees, visitors, and the public. It is our ongoing mission to maintain an accident-free working and shopping environment. BCI’s policy is to maintain its facilities and run its business operations in compliance with all occupational health and safety laws. Safety in the workplace is everyone’s responsibility. Salon Managers and Salon Associates are responsible for the daily monitoring of workplace safety procedures. In order to ensure a safe and healthy work environment, we must be able to identify a potential hazard and always report hazards and injuries to BCI’s Corporate Office. Safety Tips Below is a non-exhaustive list of safety tips to help keep your work environment injury free: 

Keep all work areas and aisles clean and uncluttered.



Make sure fixtures, shelves, and mannequins are secured and stable.



Make sure fixtures do not block aisles or major walkways.



Secure all phone wires and computer cables or tape them down to prevent trips.



Immediately clean up all spills.



Wear proper footwear with slip resistant soles.



Do not lean on or step over rolling racks.



Do not stand on chairs, tables, and desks.



Always use caution on ladders: o Do not overreach while working on a ladder. o Do not wear high-heeled shoes when on a ladder.



Never bring food or beverages in the designated work area.



Use caution when lifting heavy items.



Pay special attention to lighting conditions, floor conditions, and other conditions in the workplace.

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On the Job Injuries Workers’ Compensation Insurance, or a similar type of insurance coverage, provides benefits in the event of a job-related injury. If any injury occurs, all of the following actions must be followed: 

Regardless of the nature or severity, all injuries on the job must be reported to Human Resources immediately.



Complete an Accident Report Form that is available on the BCI website, in the HR download section. Fax the completed form to Human Resources at (973) 826-1153. Contact Human Resources to confirm receipt of the form.



If an injury occurs outside of the Salon, but on the Partner Stores premises, or in the parking lot, contact Human Resources immediately—this should be the first place incident is reported. Then report to the Partner Store’s Human Resources Department and Security Department. Ensure that all proper paperwork is completed.

Medical Emergencies If you become ill or have an accident in the building, contact your immediate Supervisor and Human Resources. If a client becomes ill or has an accident while in the Salon, contact the Partner Store’s Security Department immediately. Do not try to move the injured person and explain to them that help is on the way. No statements should be made to the injured person about fault or blame.

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FOR BCI’S SALON EMPLOYEES 1: SALON MANAGER EXPECTATIONS BCI expects all Salon Managers to demonstrate the highest standards of professionalism and to set the tone of his/her business including but not limited to: 

Demonstrating integrity in all facets of maintaining his/her business.



Knowing, upholding, and enforcing all BCI and Partner Store Policies and Procedures.



Following the BCI Standards of Conduct and setting a positive example to not only Salon Associates but the Partner Store Employees as well.



Adhering to the schedule.

2: SALON PERSONNEL FILES AND CONFIDENTIAL INFORMATION Salon Managers must maintain the confidentiality and safety of personal information for all Salon Employees: 

Salon Associate personnel files are to be kept locked in Salon with only the Salon Manager having access.



Former Salon Associate personnel files must be sent to Human Resources upon separation.



Salon Managers must password protect all Memos to File, Corrective Actions, or any other personnel sensitive documents.

3: PERSONAL PRESENTATION STANDARDS Due to the nature of the Company’s business within the public sphere, it is necessary that Salon Employees maintain the appropriate personal hygiene, dress, appearance, and grooming standards. The Company will attempt to accommodate those Employees who cannot comply with the policies outlined above. Please see Human Resources to request consideration of an accommodation. It is at the sole discretion of BCI to determine and address any violations of these standards. Please see BCI’s Procedure Manual for the detailed list of Presentations Standards that all Salon Employees are required to follow.

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4: MEETING SALES/SERVICE EXPECTATIONS AND STANDARDS It is the responsibility of each Salon Manager to make sure all Salon Associates understand what the Monthly Sales/Service Expectations are and the role they play in meeting them. The Company strongly recommends that all Salon Managers utilize the Goal Setting program that is available for download on the BCI Website under the Human Resources heading. If a Salon Manager chooses not to follow this recommended program it is up to him/her to determine how he/she will go about setting goals and conveying these goals to each member of his/her Salon team. Every Salon must have a clear Goal Setting program in place. Salon Managers should be prepared to talk about the Goal Setting program he/she uses to their Divisional Contact and Human Resources. BCI expects each Salon Manager to have monthly meetings to review sales expectations. These should take place with the entire staff and individually with each Salon Associate. If a Salon Associate is struggling to meet his/her goals, the Salon Manager must work with the Salon Associate to put an Action Plan in place to address the situation. If the Salon Associates productivity does not improve, contact Human Resources to discuss other courses of action. See BCI’s Procedure Manual for the detailed Productivity and Meeting Sales Expectations procedure. 5: WRITING GUIDELINES As representatives of BCI and your Partner Store, it is imperative that we maintain a professional demeanor in all forms of communication with everyone we communicate with, especially our clients. It is imperative that when you write an e-mail or letter it is a professional and presentable message. Before sending out any communication, you must read through and spell check your e-mail or letter. See BCI’s Procedure Manual for the detailed Writing Guidelines procedure. 6: SHOPPING Personal shopping (the act of examining goods or services with perhaps the intent to buy) should be done during lunch, break, or your non-scheduled hours. Personal shopping should not be done before the store opens or when it is busy with clients. All packages, briefcases, handbags, and other items brought in are subject to inspection. Employees must follow the Policies and Procedures of the Partner Store for all purchases made during the workday, including but not limited to purchases made in Partner Store or another store in area. 37 BC INTERNATIONAL GROUP, INC. EMPLOYEE HANDBOOK

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7: PARTNER STORE MERCHANDISE POLICY At no time should there be any Partner Store merchandise in the Salon stockroom or on the selling floor. Any Partner Store merchandise that has not been purchased that is found within the Salon premises may result in disciplinary action, up to and including termination of employment. 8: ENTERING AND EXITING LOCATION All Salon Employees must use the designated Employee entrances and exits when arriving and leaving work. It is important that everyone follow their Partner Store’s Policies and Procedures. 9: SALON COVERAGE POLICY It is the BCI policy to ensure we have coverage in our Salons at all times during operating business hours. It is your responsibility to ensure the Salon is covered at all times during your scheduled shift. Should you need to leave the Salon unattended for any reason, it is your responsibility to make every effort to secure all merchandise and notify your Salon Manager, Store Security, Divisional Contact, or Human Resources. If a Salon Associate is unable to work his/her scheduled hours due to illness or any other reason, it is the Salon Manager’s responsibility to make sure those work hours are covered. Any violation of this policy may result in disciplinary action, up to and including termination of employment. 10: SCHEDULED MEAL AND REST PERIODS If an Employee works:  

5-8 hours they are required to take an unpaid 30-minute meal/rest period. 8.5 hours or more they are required to take an unpaid 60-minute meal/rest period.

Please contact Human Resources if a Salon Associate is scheduled more than 8.5 hours during a work shift. Employees must enter their time out at the start of their meal/rest period and must enter their time in when they return from their allotted period. Contact Human Resources if during the work shift a Salon Associate is not able to take scheduled meal/rest period because of coverage issues. Federal or State laws that provide greater protection or benefits shall take precedence over these guidelines wherever applicable, please refer to your state’s addendum. 38 BC INTERNATIONAL GROUP, INC. EMPLOYEE HANDBOOK

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11: SCHEDULE SUBMISSION ADHERENCE Salon Managers are required to maintain a schedule of Salon coverage bearing in mind the nature of his/her business needs. The Company expects that Salon Managers will: 

Submit Salon schedule to BCI by the required due date as stated on the Schedule and Payroll Calendar.



The schedule submitted must show appropriate Salon coverage.



Salon Managers and Salon Associates are expected to work a rotating schedule.



Salon Managers are expected to schedule themselves for a minimum work day of 8 hours—not including meal breaks. For example if scheduled to start day at 9:30, Salon Manager would be scheduled to work until 6:30 with an hour lunch.



Any changes to the Salon schedule must be documented on the schedule sheet and the Salon Manager must resubmit the schedule.



If a Salon Associate requests a change in the schedule, the Salon Manager must insure that the schedule is changed to show appropriate Salon coverage.



If there is any change to the Salon Managers schedule, whether it is leaving early or coming in late, or changing day off, he/she must notify his/her Divisional Contact and Human Resources of the change.



Salon Managers cannot be scheduled off for four (4) consecutive days as regular days off, without prior approval from Divisional Contact or Human Resources. For example if he/she were to be off on Friday and Saturday at the end of a pay week, he/she cannot be off Sunday and Monday as well for a total of four (4) regularly scheduled days off. The maximum regularly scheduled days off in a row to be taken is two (2). This includes taking four (4) regularly scheduled days off surrounding paid time off, including, but not limited to vacation days. o If you have questions regarding this contact Divisional Contact or Human Resources.



If Salon Associate is unable to fill his/her scheduled hours due to illness or any other reason, it is the Salon Manager’s responsibility to make sure those work hours are covered.

For the detailed procedure on Salon Schedule Submission, please refer to the BCI Procedure Manual.

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12: POWER OUTAGES, STORE EVACUATIONS, AND STORE CLOSINGS If there should be a power outage, store evacuation, or store closing, it is important that all Salon Employees know what to do. Follow the procedures of your Partner Store, remain calm, and when in a safe area contact your Divisional Contact or Human Resources. For the detailed procedure on what to do in these circumstances see the BCI Procedure Manual Power Outages, Store Evacuations, and Store Closings Procedure. 13: SMOKING POLICY Employees who work on site at a Partner Store will be expected to adhere to the smoking policy at that location. No Employee should be taking a smoking break outside of his/her scheduled meal and rest period. Any violation of this policy may result in disciplinary action, up to and including termination of employment. 14: MUSIC LISTENING The only music playing in the Salon should be that which your Partner Store has on their PA system. If the music on the PA system does not play in your Salon, you must contact BCI Operations Department to discuss what you can play. No Salon Manager or Salon Associate should be listening to music with ear buds, headsets, and headphones from their own personal device. Salons cannot visit music streaming sites including but not limited to Spotify, Pandora, and Grooveshark to play on Salon computer speakers. Nor should they be accessing any cloud-based music including but not limited to Amazon or Google. 15: ENCOUNTERING AN AGGRESSIVE CLIENT There are times when you could possibly deal with an aggressive client, on the phone or in the Salon. BCI wants to make sure that you know how to professionally and safely handle an aggressive client. Remember to remain calm and professional, do nothing to mirror any aggressive behavior. Contact Security. All Salon Associates should immediately contact their Salon Manager to make them aware of the incident. All Salon Managers should contact their Divisional Contact or Human Resources to report on the incident. See BCI’s Procedure Manual for the detailed Encountering an Aggressive Client procedure. 40 BC INTERNATIONAL GROUP, INC. EMPLOYEE HANDBOOK

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16: HANDLING SHOPLIFTING SITUATIONS At times there can be threats in the retail environment and we want you to know how to act should you be faced with someone forcibly robbing the Salon. The most important thing to remember is to not fight the robber, comply with their demands. We do not want you to jeopardize your safety or the safety of others. Do nothing to provoke the robber; we do not want you to try to be a hero. Follow the instructions of the robber to help try to prevent harm. See BCI’s Procedure Manual for the detailed Handling Shoplifting Situations Policy and Procedure. 17: SALES INTEGRITY 

Merchandise returns are to be processed immediately to protect the client’s financial interest and to preserve the integrity of reported sales, promotional events and sales contests. Specifically: o Merchandise returns may not be held to influence sales, promotional events, or sales contests. o All returns must be processed and rung on the same day the merchandise is received from the client. o In instances where further research is required or transaction volume does not allow same day processing, all returns must be resolved within seventy-two (72) hours.



All BCI property (merchandise, samples, supplies, equipment, clientele books and reports, etc.) belongs to BCI. Giving away or appropriating any BCI property, even though the property may be of little or no apparent value, constitutes theft. Employees may not use BCI property for any personal business or benefit.



Under no circumstances may an Employee take or purchase “trade-in” pieces.



Falsification of BCI records and documents is prohibited.



Established computer/data security standards and guidelines must be followed see Company Property Policy.



Appropriate sales tax must be charged for all transactions.



Monies received from the sale of merchandise must be rung and placed immediately in the register terminal.



Employees shall not process transactions on behalf of clients without their authorization.



Employees shall not provide unauthorized discounts to clients.



Employees shall not accept as payment any tender that they have reason to believe, or have knowledge that the tender may not belong to the client. In addition, Employees shall not override any transactions declined by the issuing credit card company. 41

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

Wearing, using, or shipping Salon merchandise that has not been purchased is prohibited (unless the Employee has received prior authorization from management to do so).

Any violation of this policy may result in disciplinary action, up to and including termination of employment. 18: INVENTORY SHORTAGE Shortage is a term that describes the Company’s merchandise which is unaccounted for. Shortage can occur due to accounting and paperwork errors, theft, shoplifting, or mistakes ringing transactions on the registers. BCI takes shortages very seriously and will prosecute, to the fullest extent of the law, any individual who shoplifts, steals, or commits larceny of any kind. BCI loses profit when shortages occur. Because a loss in profit affects all Employees, it pays to control shortage. By working as a team, we can stop shortage in every area of the Company: 

Pay attention to details—operational excellence is its own reward.



Encourage others to be honest by setting a good example.



Exceed the client’s expectations—provide excellent customer service.



Stay focused when working on paperwork—paperwork errors lead to shortages.



Ensure that returns are handled promptly, and entered into all systems.



Ensure all daily counts are done in a timely manner.

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FOR BCI’S CORPORATE EMPLOYEES 1: EMPLOYEE IDENTIFICATION CARD BCI is committed to the safety and security of all of its Employees. To that end, all BCI Employees who are employed at BCI’s Headquarters will be issued a picture Employee Identification Card. Employees must carry their Employee Identification Card on their person at all times when on BCI property, show their Employee Identification Card at all points of entry into and out of BCI’s Headquarters, and upon request to any member of BCI’s Management Team. The Employee Identification Card will be used to account for an Employee’s time and attendance. Accordingly, Employees are required to swipe their Employee Identification Card at all points of entry and exit to the building in order for BCI to account for time worked. Failure to do so may result in disciplinary action, up to and including termination of employment. Moreover, failure to do so may result in a delay in getting paid in a timely manner. The Employee Identification Card is for the assigned Employee’s use only. No one else may possess or use another Employee’s Employee Identification Card, whether or not that individual is a BCI Employee. In the event an Employee reports to work without their Employee Identification Card, they must sign in with the BCI receptionist. Employees must notify their Supervisor immediately that they have forgotten their card and will be required to complete a manual time sheet for their time and attendance that day. If an Employee losses their Employee Identification Card, they will be responsible to pay BCI $5.00 for the cost of replacement. Failure to abide by this policy will result in disciplinary action, up to and including termination of employment. Any questions regarding the proper use of the Employee Identification Card should be directed to Human Resources. 2: VISITORS TO BCI PROPERTY All visitors of BCI Employees must enter and exit the building through the front door, must be announced by BCI receptionist, and escorted by the person that the visitor is there to see. All food deliveries must come to the front door of the building. Please notify the BCI receptionist if you are expecting a visitor or a food delivery.

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3: SMOKING POLICY BCI provides a smoke-free environment for all of its Employees and clients. Accordingly, smoking at BCI’s Totowa Headquarters is strictly regulated. You are expected to be courteous and concerned about the needs of your fellow Employees and others, and only smoke in the smoking shelter, which is located in the middle island of BCI’s parking lot across from the side warehouse entrance (designated smoking area). Other than the designated smoking area described above, smoking is prohibited at all times on BCI’s premises including all areas outside the building such as entrance ways, sidewalks, parking areas, BCI’s vehicles, and Employee vehicles located on BCI’s property. Smoking, means the burning of a lighted cigar, cigarette, pipe, or any other matter of substance which contains tobacco. This policy applies to all Employees, visitors, vendors, and any individual who either works in or is visiting Company property. No Employee should be taking a smoking break outside of his/her scheduled meal and rest period. Any questions regarding this smoking policy should be directed to Human Resources. Any violation of this policy may result in disciplinary action, up to and including termination of employment. 4: POWER OUTAGE, BUILDING EVACUATION, AND WEATHER EMERGENCIES In the event that the power goes out while in the building: 

Do not panic.



Do not wander around the building.



Proceed to the designated exit.



Meet in the designated area outside the building to receive further instructions.

In the event that the building needs to be evacuated due to fire or other threat: 

Do not panic.



Proceed calmly to the nearest exit.



Do not push people out of the way.



If you see someone hurt help them out of the building.



Proceed to the designated area outside the building to receive further instructions.

In the event of weather emergencies: 

Do not assume Totowa Building will be closed due to weather. 44

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

Call the designated phone number to check on open/close status.



If at Totowa and a weather emergency happens, you will receive further instructions.

5: CORPORATE PERSONAL PRESENTATION STANDARDS All front office personnel are expected to dress in a professional business manner. Professional business attire includes, but is not limited to, the following: Men

Women

Blazers, suits, sports coat

Dresses

Dress slacks

Skirts

Ties

Dress slacks

Dress shirts with collars and buttons

Blouses, sweaters

Dress shoes

Dress shoes, boots

It is expected for the male Employees on days that they have meetings that they wear a suit. When seasonally appropriate, it is acceptable for female Employees to wear sandals or open– toed shoes, without hosiery. The following is a non-exhaustive list of dress, appearance, grooming, and hygiene standards that BCI expects all Employees to follow. Employees with special needs or with questions regarding this policy are encouraged to contact Human Resources. BCI retains sole discretion in determining whether an Employee violates this policy. 

Clothes must be maintained in a neat, stain-free, odor-free condition, and must be kept in good repair.



Appropriate undergarments must be worn at all times.



Shoes must coordinate with business attire, and must be kept polished and in good repair. Flip flops and athletic shoes are not allowed.



Hair must be clean and neat in appearance and consistently maintained. Hairstyles must be appropriate for a professional work environment. If hair is dyed, bleached or tinted, the color must be a natural hair color and must be maintained. Wigs are permitted, provided they meet these appearance standards. Partially shaved heads or shaved designs are not permitted. Beards and mustaches must be neatly trimmed.



Jewelry must be tasteful, not excessive, and must coordinate with business attire. Earrings are allowed in the ear lobes only. Two pairs of earrings may be worn if one is 45

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the small stud type. Unless an Employee receives prior approval from Human Resources, no other visible body-piercing jewelry is allowed. 

Good personal hygiene is required at all times.



Make-up must be professional and natural in appearance.



Tattoos must be covered.



Nails must be clean and neatly manicured. Nail length should not interfere with job performance.



Fragrances must be subtle.



Unless an Employee receives prior approval from Human Resources hats of any style may not be worn during working hours.



Dark glasses may not be worn unless required by a physician’s prescription.

6: SCHEDULED MEAL AND REST PERIODS BCI Employees should follow the meal and rest period schedule for their designated area. No Employee should be taking a smoking break outside of his/her scheduled meal and rest period. Federal or State laws that provide greater protection or benefits shall take precedence over these guidelines wherever applicable, please refer to your state’s addendum. 7: CORPORATE OFFICE HOUSEKEEPING In an effort to maintain a clean corporate environment, all office personnel are required to do the following: 

Refrain from eating in offices.



Keep desk neat; discard all unnecessary papers.



Locate housekeeping for any spills.

8: MUSIC LISTENING While BCI allows Employees to listen to music at their work station, no Employee should be listening to music at a volume that is disruptive to other Employees. Appropriate volumes must be maintained at all times. Ear buds, headsets, and headphones cannot be used to listen to music. 46 BC INTERNATIONAL GROUP, INC. EMPLOYEE HANDBOOK

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Employees cannot visit music streaming sites including but not limited to Spotify, Pandora, and Grooveshark on BCI workstations. Nor should they be accessing any cloud-based music from Amazon or Google. Furthermore, Employees should not be listening to music that has offensive language while at their work station. 9: EMPLOYEE PURCHASE PROGRAM 

Benefit available to Corporate BCI Employees after 90 days of employment.



Selling price is calculated as Store Cost + 20%.



Consignment (ZZ style) Garments are excluded.



BCI Corporate Employees need to complete an Employee Purchase Request Form and have a Sr. Vice President approve purchase.

10: EMPLOYEE SERVICE DISCOUNT POLICY 

Benefit is available to all Corporate BCI Employees after 90 days of employment.



Storage is $10.00 per garment; storage is $5.00 per accessory.



Cleaning is $20.00 per garment; cleaning is $5.00 per accessory.



Cleaning of outerwear, shearlings, or leathers is $50.00 per garment.



40% discount off repair price list.



If an Employee wants an item restyled, the item should be sent to the Service Department at our Totowa facility. You will be given a discounted estimate for the restyle.

Please Be Aware of the Following: 

There are no further discounts on the above discounted service items.



Employees cannot use their department store credit card to get any further discounts as the rates have already been reduced.



These discounts apply only to BCI Employee owned garments.



Employees are limited to 3 garments per year—accessories are not included in the 3 item limit.

BCI’s Employee Service Discount Program is a benefit and privilege for eligible BCI Employees. Any Employee who fails to follow the terms of this policy may be subject to disciplinary action, up to and including termination of employment.

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11: TRAVEL POLICIES All Employees of BC International Group, Inc. are expected to comply with the Company’s standard travel procedures, as documented below. This establishes policies governing the reimbursement of travel expenses incurred while conducting Company business outside of the Employee’s home area. Compliance with the travel policy is mandatory, any unauthorized travel or arrangements that do not comply with the travel policy will not be reimbursed. Meals: BCI Employee’s traveling over 65 miles from his/her normal commute or traveling overnight, will be reimbursed up to $60 per day.   

Breakfast Lunch Dinner

$10 $15 $35

Hotel: 

Hotel accommodations cannot exceed $150 per night.

Air Travel: 

All air travel should be booked at least 14 days in advance if possible.



Travelers are expected to fly at the lowest reasonable airfare available. o There is no reimbursement for any ticket upgrades.

Ground Transportation: 

When using a personal vehicle the allowable mileage rate is based on current guidelines. Distance is calculated as the miles traveled to Employee’s destination minus the miles traveled to Employee’s normal place of business. Fuel cannot be expensed.



When renting a car, refueling must be done prior to car return.

Gratuities: 

An 18% gratuity is the Company standard for meals.

Laundry: 

Laundry expenses are covered only after traveling consecutively for six (6) or more days.

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Reimbursement Terms: 

Original and Itemized receipts must accompany any charges submitted for reimbursement.



Nonessential incidental items will not be reimbursed.



Expense Report must be submitted within thirty (30) days of the incurred expenses to the extent possible.

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FOR BCI’S WAREHOUSE FACILITIES, FACTORY, AND DRIVERS 1: BCI LOGGING SYSTEM BCI is utilizing a finger scan system for select sections of its corporate offices to input hours worked each day. Employees login and logout during the day through the BCI Logging System program. It is the responsibility of the Employee to correctly login and logout over the course of the day and there should not be any inappropriate use of the system to alter the actual hours worked. BCI wants to assure all Employees that the system is not taking a copy of their fingerprints. There is no way that the image scanned can be printed out or used in any way. BCI Employees who are not part of the finger scan system utilize the Employee Identification Card system as outlined in the section titled For BCI’s Corporate Employees. 2: SMOKING POLICY BCI provides a smoke-free environment for all of its Employees and clients. Accordingly, each Service Center has a designated smoking area. If you need clarification to where this designated smoking area is at your location, please see your Supervisor. You are expected to be courteous and concerned about the needs of your fellow Employees and others and only smoke in the designated area. Other than the designated smoking area described above, smoking is prohibited at all times on BCI’s premises including all areas outside the building such as entrance ways, sidewalks, parking areas, BCI’s vehicles, and Employee vehicles located on BCI’s property. Smoking, means the burning of a lighted cigar, cigarette, pipe, or any other matter of substance which contains tobacco. This Policy applies to all Employees, visitors, vendors, and any individual who either works in or is visiting Company property. No Employee should be taking a smoking break outside of his/her scheduled meal and rest period. Any questions regarding this smoking policy should be directed to Human Resources. Any violation of this policy may result in disciplinary action, up to and including termination of employment.

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3: POWER OUTAGE, BUILDING EVACUATION, AND WEATHER EMERGENCIES In the event that the power goes out while in the building: 

Do not panic.



Do not wander around the building.



Proceed to the designated exit.



Meet in the designated area outside the building to receive further instructions.



If located a Service Center other than Totowa, Service Center Manager needs to contact the Director of Service Centers to make BCI aware of the situation.

In the event that the building needs to be evacuated due to fire or other threat: 

Do not panic.



Proceed calmly to the nearest exit.



Do not push people out of the way.



If you see someone hurt help them out of the building.



Proceed to the designated area outside the building to receive further instructions.



If located at a Service Center other than Totowa, Service Center Manager needs to contact the Director of Service Centers to make BCI aware of the situation.

In the event of weather emergencies: 

Do not assume BCI Buildings will be closed due to weather.



Call the designated phone number to check on open/close status.



If at Totowa and a weather emergency happens, you will receive further instructions.



If located at a Service Center other than Totowa, the Service Center Manager needs to contact the Director of Service Centers to discuss situation.

4: SCHEDULED MEAL AND REST PERIODS BCI Employees should follow the meal and rest period schedule for their designated area. No Employee should be taking a smoking break outside of his/her scheduled meal and rest period. Federal or State laws that provide greater protection or benefits shall take precedence over these guidelines wherever applicable, please refer to your state’s addendum.

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5: WAREHOUSE AND FACTORY PERSONAL PRESENTATION STANDARDS All warehouse and factory personnel are expected to dress in a business casual manner reflective of their job duties. The following is a non-exhaustive list of dress, appearance, grooming, and hygiene standards that BCI expects all Employees to follow. Employees with special needs or with questions regarding this policy are encouraged to contact Human Resources. BCI retains sole discretion in determining whether an Employee violates this policy. 

Clothes must be maintained in a neat, stain-free, odor-free condition, and must be kept in good repair.



Appropriate undergarments must be worn at all times.



Jeans or pants are to be worn and must be worn at waist level.



Hair must be clean and neat in appearance and consistently maintained. Hairstyles must be appropriate for a professional work environment. If hair is dyed, bleached or tinted, the color must be a natural hair color and must be maintained. Wigs are permitted, provided they meet these appearance standards. Partially shaved heads or shaved designs are not permitted. Beards and mustaches must be neatly trimmed.



Jewelry must be tasteful, not excessive, and must coordinate with business attire. Earrings are allowed in the ear lobes only. Two pairs of earrings may be worn if one is the small stud type. Unless an employee receives prior approval from Human Resources, no other visible body-piercing jewelry is allowed.



Good personal hygiene is required at all times.



Make-up must be professional and natural in appearance.



Tattoos must be covered.



Nails must be clean and neatly manicured. Nail length should not interfere with job performance.



Fragrances must be subtle.



Unless an Employee receives prior approval from Human Resources, hats of any style may not be worn.



Dark glasses may not be worn unless required by a physician’s prescription.



Proper footwear must be worn.

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6: USE OF MUSIC AND PERSONAL DEVICES ON WAREHOUSE FLOOR Music and Listening Devices While BCI allows Employees to listen to music at their work station, no Employee should be listening to music at a volume that is disruptive to other Employees. Appropriate volumes must be maintained at all times. Ear buds, headsets, and headphones cannot be used to listen to music. Even if you only have a listening device in one ear they are not permitted. Employees cannot visit music streaming sites including but not limited to Spotify, Pandora, and Grooveshark on BCI workstations. Nor should they be accessing any cloud-based music from Amazon or Google. Furthermore, Employees should not be listening to music that has offensive language while at their work station. Use of Cell Phones, Smart Phones, and PDA’s While at work, Employees are expected to exercise discretion in using personal cellular phones and other personal communication devices. Excessive personal calls, texting and/or e-mailing during the workday, regardless of the phone used, can interfere with Employee productivity and be distracting to others. Flexibility will be provided in circumstances demanding immediate attention. Excessive use of cellular phones in such circumstances, or use that otherwise disrupts the Company’s operations, may subject Employees to disciplinary action up to and including termination of employment. The Company will not be liable for the loss of personal cellular phones brought into the workplace. Headsets and or hands free devices (Bluetooth devices) of any kind are prohibited on warehouse floor. Employees should not be visiting/posting on Social Media sites, watching videos, or playing games on their Smart Phones, PDA’s, or cell phones while on warehouse floor. Any violation of this policy may result in disciplinary action, up to and including termination of employment. 7: DRIVER’S OVERVIEW The Drivers employed by BCI are an important part of our team. They are representatives of BCI and have contact with our Salons, partners, distributors, and clients. As such, we expect them to always maintain professional and businesslike appearance and behavior when on the job. 53 BC INTERNATIONAL GROUP, INC. EMPLOYEE HANDBOOK

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BCI is providing the following policies to our Drivers to outline some of the key guidelines we expect them to follow, and is not intended to cover all policies that apply to Drivers. BCI may issue additional policies from time to time, as it deems necessary, and will make every effort to advise Drivers of those policies as well. BCI reserves the right to change these policies, as it deems necessary at its sole discretion, without advance notice. For the purpose of this Handbook the terms as they appear will be defined as follows: 

Driver/Driver’s Helper: An individual employed by BCI for the purpose of either operating or assisting in the operation of a BCI Vehicle.



On Duty: The time that an individual employed with BCI is at work (logged in or swiped in with ID card), on the job.



Route: The designed trip assigned to each Driver and Helper.

8: DRIVERS, DRIVER’S HELPERS, AND COURIER DRESS CODE AND APPEARANCE GUIDELINES Maintaining a professional, businesslike appearance is important to BCI’s success. The image we project must demonstrate that we are professional, productive, thorough, and reliable. Appearance is a major element of our image. To this end, it is BCI’s policy that a Driver’s/Driver’s Helpers dress and grooming must be appropriate for his/her work situation. It is at the sole discretion of BCI to determine and address any violations of these standards. Please be advised that whenever Drivers/Driver’s Helpers are on duty, whether on the road or in a Partner Store, they are representing BCI and are expected to adhere to BCI’s high professional standards. BCI requires Drivers/Driver’s Helpers to wear a collared shirt, either polo or button down, that is clean, without any obscene or distasteful wording or designs along with clean and appropriate fitted jeans or khaki/cargo pants. During the summer month’s jean shorts or cargo shorts are also acceptable. Drivers/Driver’s Helpers are required to wear appropriate outerwear when necessary. Employees with special needs or with questions regarding this policy are encouraged to contact Human Resources. It is in BCI’s sole discretion in determining whether an Employee violates this policy. BCI expects Drivers/Driver’s Helpers to maintain a clean, neat, odor-free, well groomed, and professional appearance at all times: 

Clothes must be maintained in a neat, stain-free, odor-free condition, and must be kept in good repair.



Appropriate undergarments must be worn at all times.



Jeans or pants are to be worn and must be worn at waist level. 54

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

Hair must be clean and neat in appearance and consistently maintained. Hairstyles must be appropriate for a professional work environment. If hair is dyed, bleached or tinted, the color must be a natural hair color and must be maintained. Wigs are permitted, provided they meet these appearance standards. Partially shaved heads or shaved designs are not permitted. Beards and mustaches must be neatly trimmed.



Jewelry must be tasteful, not excessive, and must coordinate with business attire. Earrings are allowed in the ear lobes only. Two pairs of earrings may be worn if one is the small stud type. Unless an Employee receives prior approval from Human Resources, no other visible body-piercing jewelry is allowed.



Good personal hygiene is required at all times.



Make-up must be professional and natural in appearance.



Body piercings that show must be removed (please note the exception is the ear lobes).



Tattoos must be covered.



Nails must be clean and neatly manicured. Nail length should not interfere with job performance.



Fragrances must be subtle.



No hats with symbols or logos are permitted.

Drivers/Driver’s Helpers are expected to use good judgment in complying with these dress and appearance standards. Drivers/Driver’s Helpers reporting to work improperly and/or unprofessionally dressed or groomed may be sent home by their Supervisor to change clothing or until further notice. In addition to the above, Drivers/Driver’s Helpers assigned to the BCI Courier are expected to wear the provided button down shirt. Due to the nature of the Company’s business within the public sphere, it is necessary that Drivers/Driver’s Helpers maintain the personal hygiene, dress, appearance and grooming standards that have been described above. The Company will attempt to accommodate those Employees who cannot comply with the policies outlined above. Please see Human Resources to request consideration of an accommodation. Any violation of this policy may result in disciplinary action, up to and including termination of employment. 9: DRIVERS, DRIVER’S HELPERS, AND COURIER PROCEDURES Telephones/ Communication Devices BCI has provided each Driver with an assigned Company telephone to assist in carrying out their daily duties and responsibilities. All Drivers/Helpers are required to follow the BCI Phone 55 BC INTERNATIONAL GROUP, INC. EMPLOYEE HANDBOOK

REVISION 1.3 MARCH 2015

Usage Policies set forth in the Handbook, along with the procedures outlined below in connection with use of this telephone: 

Each Driver must log on to their assigned Company telephone as soon as they report to work on each scheduled workday.



Company telephones must remain turned on throughout the entire workday. If a Company telephone is turned off, it will be presumed that the Driver is no longer working. The Driver will not be paid for any time when his/her phone is turned off. Should the Driver’s phone become inoperable during the workday, the Driver must immediately call the Supervisor to report the situation and arrange to correct it.



Each Driver must log their arrival and departure time, along with the number of garments the Driver received and/or delivered at each stop.



In the case of locations using Mobilecast the Drivers will do so electronically.



The Driver’s route sheet must be completed upon return to the BCI Warehouse.



Company telephones must to be returned to the Supervisor along with the Driver’s daily paperwork upon return to the BCI Warehouse.

Any violation of this policy may result in disciplinary action, up to and including termination of employment. 10: DAILY PAPERWORK—MASTER TRIP SHEETS In order for BCI to operate efficiently and successfully, it is imperative that all daily paperwork is completed and submitted timely and in its entirety. Drivers must adhere to the following procedures in connection with completing and submitting their daily paperwork: 

Verify counts for each store, and sign and print Driver’s name at the bottom of warehouse copy.



Warehouse representative must print their name, sign warehouse copy, and confirm the number of garments being transferred to the Salons.



Salon representative must print his or her name and sign for all garments transferred from the BCI Warehouse to the Salon.



Inter-store transfers are to be handled separately and must have signed transfers.



All paperwork must be submitted to the Supervisor after each truck has returned to the BCI Warehouse and is unloaded.

11: LOADING AND UNLOADING MERCHANDISE AND GARMENTS 

Drivers are to load no more than twenty-five (25) units per rack and no more than fifteen (15) units per trolley. 56

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

Drivers must handle garments with care and in a respectful manner.



No garments are to be left on the floor.



All garments must be protected from the weather and any type of damage.



Upon arrival at the BCI Warehouse: o Garments must be counted. o Garments must be placed on trolleys according to the above-stated standards and separated by storage, service, and stock. o Trolleys are to be pushed to the designated area on the warehouse floor—not left in the loading dock. o All daily paperwork must be returned to the Supervisor.

12: VEHICLE MAINTENANCE AND UP-KEEP BCI expects all of its Employees to be professional, take pride in their work and respect Company property. To that end, Drivers are responsible for the following vehicle maintenance and up-keep: 

Trucks are to be cleaned once a week—inside and out.



Smoking is strictly prohibited in all BCI Vehicles. This includes the cab of the trucks and also in and around the box, especially when loading and unloading garments and BCI property.



Mileage and condition of vehicle must be monitored. Upon return to the warehouse on Friday the Driver is to report his ending mileage to Dispatch to be entered into the vehicle tracking system.



Any accident, incident, damage, inoperable or improperly operating or malfunctioning part, or excessive wear on the vehicles must be reported to your BCI Supervisor and Human Resources immediately, and an incident report must be filled out.

13: VEHICLE OPERATION In keeping with its obligations under Federal and State laws, and to minimize risks to our Employees, clients, passengers in moving vehicles, and the public at large, BCI has adopted the following policy with respect to vehicle operation. 

Drivers are required to familiarize themselves, and comply at all times, with the laws of the state/locality in which they work with respect to traffic laws and regulations, and the use of mobile telephones. Regardless of the circumstances, including slow or stopped traffic, Employees must pull off to the side of the road and safely stop the vehicle before placing or accepting a call unless they are using a hands-free option. Employees are 57

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expected to keep the call short, use hands-free option, and keep their eyes on the road. Under no circumstances are Employees allowed to place themselves at risk to fulfill business needs. In all cases, good judgment should be exercised when using a cellular phone while driving and BCI Employees are required to comply with all Federal and State requirements while operating a motor vehicle. 

Drivers must inform BCI of any moving violations or driving infractions or vehicle stops (including but not limited to weigh stations, police/traffic stops, speeding tickets, traffic accidents, DWI, or DUI) immediately upon return to the BCI Warehouse. Drivers must, at that time, complete, and submit an incident report. This also applies to incidents that happen while off the job. Failure to make BCI aware may result in disciplinary action, up to and including termination of employment.



Drivers must immediately inform BCI if their license has been suspended or revoked. Failure to make BCI aware of this may result in disciplinary action, up to and including termination of employment.



BCI, at its sole discretion, will determine whether a Driver will be responsible for the payment of a ticket or summons, and such determination will depend on the nature and severity of the offense.

BCI will not be responsible for payment of a ticket if that ticket is issued to a BCI Driver for a moving violation or due to that Driver’s negligence. 14: ON DUTY REQUIREMENTS 

Drivers/Driver’s Helpers are Full Time Employees therefore they are expected to work a forty (40) hour workweek.



Drivers/Driver’s Helpers returning from any route are expected to check in with their Supervisors for additional duties before taking lunch or leaving for the day.



If the Manager of Trucking or Shipping is not available, Employee must report to an available Supervisor.. In the event that these individuals are not available, the Driver must wait until they are.



Upon returning from an assignment and time permitting, Employee will be expected to work in the following areas where they will be assigned upon checking in. Once in these areas they will follow the direction of the Supervisor of each designated area. These duties will include those listed below and can be changed at the discretion of BCI: o Trucking—Clean or service trucks; bring trash to dumpster. o Shipping—Pack or Open Boxes; break down boxes. o Cleaning—Pin tickets in pockets.

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o Vault—Hang or move garments. Any violation of this policy may result in disciplinary action, up to and including termination of employment. 15: BCI COURIER When an Employee is functioning as a BCI Courier, the Employee must: 

Follow the Delivery/Pick Up schedule as provided at start of day by BCI.



If a client is not home for delivery/pick up as scheduled, the Driver must contact BCI with the change in schedule immediately.



When delivering to the client the Driver must be professional and courteous at all times.



When delivering the Driver must confirm and double-check that the correct garment(s) are being given to the correct client.



When delivering the Driver must obtain signature of person at residence accepting delivery and must also ask the name and note this on sheet with signature.



When delivering the Driver cannot leave with a doorman unless authorized on delivery manifest.



When picking up the Driver must verify the number of garments being given by the client with the manifest BCI provided. If there is a difference the Driver must contact BCI immediately.

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STATE ADDENDUMS The pages that follow are the state addendums for each state in which BCI owns and operates fur Salons. All Employees must be familiar with these additional policies and procedures based on the state in which they work. These state addendums are subject to change as new laws and regulations are passed. BCI will make all Employees in effected states aware of any changes via memorandas. If you have questions about the laws and regulations based on the state you work in, please contact Human Resources.

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STATE OF CALIFORNIA ADDENDUM The following applies ONLY to Employees working in the State of California: Definition of Spouse With limited exceptions, wherever an Employee’s “spouse” is referred to throughout this Handbook, such reference will also include a reference to the Employee’s registered domestic partner, or same-sex spouse. Overtime Non-exempt Employees generally will be paid overtime at the rate of time and one-half (1 ½) times their normal hourly wage for all hours worked in excess of eight (8) hours in one day or forty (40) hours in one week, or for the first eight (8) hours on the seventh day in the same workweek. Non-exempt Employees generally will be paid double-time for hours worked in excess of twelve (12) hours in any workday or in excess of eight (8) hours on the seventh day of the workweek. Employees may work overtime only with management authorization. Rest Periods and Meal Breaks If an Employee misses a meal period for any reason he/she should report to their Supervisor or Human Resources the reason for the missed meal period. Employees are required to track the start and end of their meal periods. Waving Meal Periods The Employee may waive his/her meal period if the days’ work is to be completed in no more than 6 hours, provided it is mutually agreed upon (sign and submit waiver located on BCI Website under Downloads for Human Resources in the California section). On Duty Meal Breaks Employees can take on duty meal breaks in certain limited circumstances. An on duty break must meet all of the following conditions: 

Is permitted only when the nature of the work prevents an Employee from being relieved of all duty.



Must be agreed to in writing by Salon Manager/HR and Employee.



Must be paid.



Can be revoked at any time in writing by the Employee, except under Wage Order 14 (agricultural occupations).

Important Note Employees must be paid for meal breaks when required to remain on premises. 61 BC INTERNATIONAL GROUP, INC. EMPLOYEE HANDBOOK

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Employees must be paid if mandatory meetings or trainings requiring their attendance are held during their meal periods. Employees are entitled to a paid ten (10) minute break for every four (4) hours worked each day. Employees will be paid for these rest breaks. Normally one rest break will be scheduled in the first half of the Employee’s shift and one in the second half. The Employee’s Supervisor will schedule the Employee’s breaks. Employees are expected to return to work promptly at the end of any break. If an Employee works longer than five (5) hours in a workday, they will be given an unpaid meal period of at least thirty (30) minutes, which must commence no later than the end of the Employee’s fifth hour of work. The Employee’s Supervisor will schedule the meal period. Employees must not perform any work during the meal period. Employees may leave the premises during their meal period. It is important that Employees return to work promptly at the end of the meal period. If an Employee works longer than ten (10) hours in a workday, Employees are required to take a second unpaid thirty (30) minute meal period. School-Related Leave If an Employee is a parent, guardian, or grandparent having custody of a child in kindergarten through Grade 12, or attending a licensed daycare facility, they are entitled to take off a total of 40 hours each year (no more than 8 hours per month) to participate in activities of the child’s school or day care. Employees must give their Supervisor reasonable notice and must use available and unused vacation, sick or personal time, if any, for purposes of the planned time off. If no vacation, sick, or personal time is available, the time off will be unpaid. The Employee’s Supervisor can request documentation from the school or licensed day care facility as proof that the Employee is participating in the activities on a specific day and time. If both parents are employed at the same location, the entitlement to leave applies only to the parent who first gives notice to the Supervisor. Available and Unused Vacation, Sick and Personal Time If an Employee does not take all of his/her vacation time or personal days prior to his/her anniversary date, in the first paycheck following anniversary date, Employee will receive a payout for the unused vacation and personal days. This payout will be paid at regular pay and will not result in any payment of overtime wages. If an Employee does not use all eligible days of sick time prior to their anniversary date, these sick days will not carry over to the following year. Employees will not receive payouts for unused sick time.

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Voting Leave In the event that an Employee does not have sufficient time outside of working hours to vote in a statewide election, the Employee may take off sufficient working time to vote. This time should be taken at the beginning or end of the regular work schedule, whichever allows the most free time for voting and the least time off from work. An Employee will be allowed a maximum of two (2) hours of voting leave on Election Day without loss of pay. Where possible, the Supervisor should be notified of the need for leave at least three (3) working days prior to the Election Day. Statutory Short-Term Disability Statutory short-term disability insurance known as State Disability Insurance (SDI) is provided by the State of California. State withholdings from Employees’ paychecks fund this benefit. Employees will receive a pamphlet from Human Resources upon hire to educate them about the benefit. It is each Employee’s responsibility to apply for such benefits when appropriate. This is solely a monetary benefit and not a leave of absence. Employees who will be out of work must also request a formal leave of absence. See the BCI Leave of Absence section of this manual for more information. Family Military Leave BCI will provide up to 10 days of unpaid leave to an eligible Employee whose spouse is on leave from deployment. The Employee’s spouse must be a member of the U.S. Armed Forces, National Guard, or Army Reserves, who has been deployed during a period of military conflict. In order to be eligible for this leave, Employees must work at least an average of 20 hours per week. Eligible Employees must: (1) provide BCI with notice that they want to take leave within two business days of receiving official notice that their spouse will be on leave from deployment; and (2) provide BCI with written documentation certifying their spouse will be on leave from deployment. This leave will run concurrently, where appropriate, with leave under the FMLA. For more information regarding this leave of absence and for details on the eligibility requirements of this leave please contact Human Resources. Bone Marrow and Organ Donation Leave Individuals employed by the Company for at least 90 days are entitled to up to thirty (30) days of paid leave in any one-year period if the leave is used for the purpose of donating an organ. Likewise, Employees serving as bone marrow donors are eligible for up to five days of paid leave in any one-year period. To receive a leave of absence, an Employee is required to provide written verification to BCI that he/she is an organ or bone marrow donor and that there is a medical necessity for the donation of the organ or bone marrow. BCI may require Employees to take up to five days of accrued vacation, personal, or sick time for leave for bone marrow donation, and up to ten (10) days of earned and unused vacation, personal, or sick time for organ donation leave. 63 BC INTERNATIONAL GROUP, INC. EMPLOYEE HANDBOOK

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Paid Family Leave An Employee who has taken off from work to care for a child, spouse, parent, or registered domestic partner with a serious health condition, or to bond with a new child, may be eligible to receive benefits through the California Paid Family Leave (“PFL”) program, which is administered by the Employment Development Department (“EDD”). These benefits are financed solely through Employee contributions to the PFL program. That program is solely responsible for determining if an Employee is eligible for such benefits. Generally there is a waiting period during which no PFL benefits are available. The EDD can provide additional information about any applicable waiting period. If an Employee needs to take time off work to care for a child, spouse, parent, or registered domestic partner with a serious health condition or to bond with a new child please advise Human Resources, to receive information about the EDD’s PFL program and how to apply for benefits. Employees also may contact Human Resources for further information. Employees should maintain regular contact with Human Resources during the time they are off work so BCI may monitor their return-to-work status. In addition, Employees should contact Human Resources when they are ready to return to work so BCI may determine what positions, if any, are open. When an Employee applies for PFL benefits, the Human Resources Department will determine if the Employee has any vacation, sick, and personal time available. If the Employee has vacation, sick, and personal time available, then the Employee will be required to use up to two (2) weeks of such vacation, sick, and personal time before becoming eligible for PFL benefits. Employees taking time off work to care for a child, spouse, parent, or domestic partner with a serious health condition or to bond with a new child are not guaranteed job reinstatement unless they qualify for such reinstatement under Federal or State Family and Medical Leave laws. Any time off for Paid Family Leave purposes will run concurrently with other leaves of absence, such as Family and Medical Leave, if applicable, but will not run concurrently with family/medical leave under the California Family Rights Act. Pregnancy Disability Leave Pregnancy Disability Leave (“PDL”) is available to eligible California Employees who are unable to perform one or more essential functions of their positions as a result of pregnancy, childbirth, or a related medical condition. Eligibility: All California Employees, regardless of length of service or scheduled hours, who, in the opinion of their health care provider, are unable to perform one or more essential functions of their positions without undue risk to themselves, the successful completion of their pregnancies or to other persons as a result of pregnancy, childbirth or related medical conditions are eligible for pregnancy disability leave. Pregnancy disability leave which also qualifies under the FMLA (see family/medical leave section) will also be designated as FMLA leave and will run concurrently. 64 BC INTERNATIONAL GROUP, INC. EMPLOYEE HANDBOOK

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Duration of Leave: Duration of the leave will be determined by the advice of the Employee’s physician, but Employees disabled by pregnancy may take up to a maximum of four (4) months of unpaid leave for the period of their pregnancy-related disability (or eighty-eight (88) work days for a full-time Employee), provided that they are eligible for PDL and comply with the procedures and policies listed below. The four months of leave includes any period of time for actual disability caused by the Employee’s pregnancy, childbirth, or related medical condition. Continuous absences and medically-necessary intermittent or reduced schedule absences, such as severe morning sickness and prenatal care, may qualify as PDL leave. PDL does not need to be taken in one continuous period of time, but can be taken on an as-needed, intermittent basis. Pay During Pregnancy Disability Leave: Employees on PDL may choose to use their available vacation, sick, and personal time. To the extent that Employees on PDL choose not to use, or do not have available and unused vacation, sick and personal time, such PDL leave will be unpaid. The use of any vacation, sick, and personal time will not extend the duration of an Employee’s PDL. Employees may also be eligible for state disability insurance payments, workers’ compensation payments or the Company’s temporary or long-term disability compensation. Benefits During Pregnancy Disability Leave: An Employee on PDL will be allowed to continue participating in any health and welfare benefit plans in which they were enrolled before the first day of the leave at the level and under the conditions of coverage as if the Employee had continued in employment for the duration of such leave. The Company will continue to make the same premium contribution as if the Employee had continued working. The continued participation in health benefits begins on the date that PDL first begins. In some instances, the Company may recover from an Employee premiums paid to maintain health coverage if the Employee fails to return to work following PDL. Employees on PDL who are not eligible for continued paid insurance coverage may continue their group health insurance coverage through the Company in conjunction with the Federal COBRA guidelines by making monthly payments to the Company’s third party COBRA administrator for the amount of the applicable premium. Employees should contact Human Resources for further information. Payment is due on the same schedule as payments that are made under COBRA. Procedures and Notification: Any Employee planning to take pregnancy disability leave should advise Human Resources as early as possible. The following procedures and policies will apply when an Employee takes PDL: 

Pregnancy leave usually begins when ordered by the Employee’s physician. The Employee must provide the Company with a certification from a health care provider. The certification indicating disability should contain: o

The date on which the Employee became disabled due to pregnancy;

o

The probable duration of the period or periods of disability; and 65

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o

A statement that, due to the disability, the Employee is unable to perform one or more of the essential functions of their position without undue risk to them, the successful completion of their pregnancy, or to other persons.



Employees who need to take pregnancy disability must inform the Company when a leave is expected to begin and how long it will likely last. If the need for a leave or transfer is foreseeable, Employees must provide notification at least 30 days before the pregnancy disability leave or transfer is to begin. Employees must consult with Human Resources regarding the scheduling of any planned medical treatment or supervision in order to minimize disruption to the operations of the Company. Any such scheduling is subject to the approval of the Employee’s health care provider.



If 30 days advance notice is not possible, notice must be given as soon as possible.



Upon the request of an Employee and recommendation of the Employee’s physician, the Employee’s work assignment may be changed, or the Employee placed on a reduced schedule, if necessary to protect the health and safety of the Employee and their child.



Requests for transfers of job duties will be reasonably accommodated if the job and security rights of others are not breached.



Temporary transfers due to health considerations will be granted when possible. However, the transferred Employee will receive the pay that accompanies the job, as is the case with any other temporary transfer due to temporary health reasons.

Reinstatement and Termination: Returns from leave will be allowed only when Employees provide a medical certification from their physician that they are released to return to work. Under most circumstances, upon submission of a medical certification that an Employee is able to return to work from a pregnancy disability leave, an Employee will be reinstated to their same position held at the time the leave began or to an equivalent position, if available. An Employee returning from a pregnancy disability leave has no greater right to reinstatement than if the Employee had been continuously employed. For example, if an Employee on PDL leave would have been laid off had she not gone on leave, or if the Employee’s job position is eliminated during the leave and no equivalent or comparable job is available, then the Employee would not be entitled to reinstatement. Employees whose PDL leave exceeds four months are not guaranteed reinstatement unless they take CFRA leave following PDL or additional leave guaranteeing reinstatement is otherwise available under Federal or State law. If an Employee does not return to work on the originally scheduled return date nor request in advance an extension of the agreed upon leave with appropriate medical documentation, she will be deemed to have voluntarily terminated her employment with the Company. Failure to notify the Company of the ability to return to work when it occurs, or an Employee’s continued absence from work because their leave must extend beyond the maximum time allowed, may be deemed a voluntary termination of the Employee’s employment with the Company, unless she is entitled to additional leave under Federal or State law.

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Employees who accept other employment while on leave without advance written permission from the Company are subject to termination. Coordination of PDL with FMLA/CFRA: Leave taken under the pregnancy disability policy runs concurrently with Family and Medical Leave under Federal law (FMLA), but not Family and Medical Leave under California law (CFRA). Leave because of the Employee’s disability for pregnancy, childbirth or related medical condition is not counted as time used under CFRA. Time off because of pregnancy disability, childbirth or related medical condition does count as Family and Medical Leave under FMLA. Employees who take time off for pregnancy disability and who are eligible for Family and Medical leave will also be placed on Family and Medical Leave that runs at the same time as their pregnancy disability leave. Once the pregnant Employee is no longer disabled, they may apply for leave under CFRA or other applicable State law, for purposes of baby bonding. Effect on Benefits and Seniority Date: Taking PDL may affect some of an Employee’s benefits and their seniority date. Employees who want more information regarding their eligibility for PDL and the impact of the leave on their seniority and benefits should contact Human Resources. No Carryover: No carryover of unused PDL leave from one 12-month period to the next 12month period is permitted. Rehabilitation Leave BCI is committed to providing assistance to our Employees to overcome substance abuse problems. Subject to other terms in this Handbook, the Company will reasonably accommodate any California Employee who wishes to voluntarily enter and participate in an alcohol or drug rehabilitation program. This accommodation may include time off without pay or an adjusted work schedule, provided the accommodation does not impose an undue hardship on the Company. Employees may also use accumulated sick, personal, or vacation days, if applicable, for this purpose. Employees should notify Human Resources if they need such accommodation. The Company will take reasonable steps to safeguard an Employee’s privacy with respect to the fact that the Employee is enrolled in an alcohol or drug rehabilitation program. Time Off For Victims of Domestic Violence or Sexual Assault Victims of domestic violence or sexual assault may take time off work to obtain help from a court, seek medical attention, obtain services from an appropriate shelter, program, or crisis center, obtain psychological counseling, or participate in safety planning, such as permanent or temporary relocation. We may require proof of an Employee’s participation in these activities. Whenever possible, Employees must provide their Supervisor reasonable notice before taking any time off under this policy. Absences for the reasons listed above may not exceed 12 weeks in a 12-month period and will be unpaid. Employees may use any available vacation, sick and personal time for the leave taken under this policy. If the absence also qualifies for family/medical leave under Federal and/or State law, and the Employee is eligible for such a 67 BC INTERNATIONAL GROUP, INC. EMPLOYEE HANDBOOK

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leave, the absence will be counted against the Employee’s FMLA and/or applicable State law entitlement. Time Off for Crime Victims Employees who have been victims of serious or violent felonies, as specified under California law, or felonies relating to theft or embezzlement, may take time off work to attend judicial proceedings related to the crime. Employees also may take time off if an immediate family member has been a victim of such crimes and the Employee needs to attend judicial proceedings related to the crime. “Immediate family member” is defined as spouse, registered domestic partner, child, child of registered domestic partner, stepchild, brother, stepbrother, sister, stepsister, mother, stepmother, father, or stepfather. Employees must give their Supervisors a copy of the court notice given to the victim of each scheduled proceeding before taking time off, unless advance notice to the Company of the need for time off is not feasible. When advance notice is not feasible, the Employee must provide the Company with documentation evidencing the judicial proceeding, within a reasonable time after the absence. The documentation may be from the court or government agency setting the hearing, the district attorney or prosecuting attorney’s office, or the victim/witness office that is advocating on behalf of the victim. Employees may elect to use available vacation, sick and personal time for the absence. If the Employee does not elect to use vacation, sick and personal time, the absence will be unpaid. Volunteer Civil Service Personnel No Employee shall be disciplined for taking unpaid time off to perform emergency duty as a volunteer firefighter, peace officer, or emergency rescue personnel. Volunteer firefighters are entitled to a maximum of fourteen (14) days per year for training. Official volunteer firefighters must alert their Supervisor that they may have to take time off for emergency duty and before doing so when possible. Employees must use available vacation, sick and personal time or must take such time off unpaid.

CITY OF SAN FRANCISCO, CA ADDENDUM In addition to the California statewide addendum, the following applies ONLY to Employees working in the City of San Francisco, CA: Equal Employment Opportunity BCI will not discriminate against any Employee on account of weight or height. 68 BC INTERNATIONAL GROUP, INC. EMPLOYEE HANDBOOK

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Sick Leave Ordinance Employees working in the City of San Francisco are entitled to one hour of paid sick leave for every 30 hours worked up to a maximum of 35 hours. To the extent that Employees receive vacation, sick, or personal leave in an amount that meets or exceeds the sick leave required under this ordinance, this ordinance will not apply to those Employees. Available unused paid leave carries over from year to year up to the maximum leave limits and does not need to be paid out at time of separation.

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STATE OF CONNECTICUT ADDENDUM The following applies ONLY to Employees working in the State of Connecticut Definition of Spouse With limited exceptions, wherever an Employee’s “spouse” is referred to throughout this Handbook, such reference will also include a reference to the Employee’s civil union partner, or same-sex spouse. Access to Personnel Records Employees may review their personnel files on BCI’s premises during their employment. Employees who wish to review their personnel file must make a written request to Human Resources, with at least fourteen (14) business days notice. During their employment, Employees are not entitled to a copy of their personnel files, nor are they entitled to remove them (or any portions of the file) from the premises. Military Family Leave Employees will be granted unpaid leave of up to 26 weeks in a two-year period to care for a spouse, parent, son, or daughter, or next of kin who was injured in the line of duty. Employees are entitled only to one such period of leave, and there is no more leave entitlement after the twoyear anniversary of the first day of leave. Witness or Crime Victim Leave Any Employee who is subpoenaed by the court as a witness in a criminal proceeding or who is attending a court proceeding related to a criminal case in which the Employee is a crime victim, may be granted unpaid leave to attend such a proceeding. Victims of Family Violence Victims of family violence may take time off work to obtain help from a court, seek medical attention, obtain services from an appropriate shelter, program, or crisis center, obtain psychological counseling, participate in safety planning, such as permanent or temporary relocation, and to participate in any civil or criminal proceeding relating to such family violence. Whenever possible, Employees must provide their Supervisor with seven (7) days’ notice before taking any time off under this policy. If the need for leave is not foreseeable, then reasonable notice of the need for leave is required. Absences for the reasons listed above may not exceed 12 days in a calendar year and will be unpaid. Employees may use any available vacation, sick and personal time for the leave taken under this policy. If the absence also qualifies for family/medical leave under Federal and/or State law, and the Employee is eligible for such a leave, the absence will be counted against the Employee’s FMLA and/or applicable State law entitlement. Emergency Response Leave Any Employee who is an active volunteer firefighter or member of a volunteer ambulance company will be given leave necessary to respond to a fire or ambulance call prior to or during 70 BC INTERNATIONAL GROUP, INC. EMPLOYEE HANDBOOK

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the Employee’s normal working hours. In order to be eligible for leave under this provision, within 30 days of being certified as a volunteer firefighter or member of an ambulance company submit a written statement signed by the Chief or Chief Administrator of the volunteer fire department or ambulance company notifying BCI that the Employee is so certified. If leave is necessary under this provision, you must provide us with as much notice as practicable. Where leave is taken under this provision, we may require that the Employee submit a written statement from the Chief or Chief Administrator of the volunteer fire or ambulance company verifying that the Employee did in fact respond to an emergency call on a particular date and time. If an Employee stops serving as an active volunteer firefighter or member of a volunteer ambulance company, the Employee must immediately notify BCI. Substance Abuse BCI may perform drug or alcohol testing of any Employee who BCI reasonably believes is under the influence of drugs or alcohol, which adversely affects or could adversely affect such Employee’s job performance. An Employee whose drug or alcohol test reported positive will be afforded the opportunity to verify and/or confirm such positive result by a second urinalysis drug test, which is separate and independent from the initial test Any Employee who is found through drug or alcohol testing to have in his or her body a detectable amount of an illegal drug or of alcohol will be subject to discipline up to and including discharge. All information relating to drug or alcohol testing or the identification of persons as users of drugs and alcohol will be protected by BCI as confidential unless otherwise required by law, overriding public health and safety concerns, or authorized in writing by the persons in question.

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DISTRICT OF COLUMBIA ADDENDUM The following applies ONLY to Employees working in the District of Columbia Equal Employment Opportunity BCI will not discriminate against any Employee on account of the Employee’s personal appearance with regard to bodily conditions or characteristics, manner or style of dress and manner and style of personal grooming. BCI will also not discriminate against any Employee on account of the Employee’s political affiliation, because that Employee has family responsibilities or is enrolled in college, university or a business, nursing, professional, secretarial, technical or vocational school, or an adult education program. Definition of Spouse With limited exceptions, wherever an Employee’s “spouse” is referred to throughout this Handbook, such reference will also include a reference to the Employee’s registered domestic partner, or same-sex spouse. Family and Medical Leave (DCFMLA) Employees who have been employed at least one year without a break in service and who have worked thousand (1000) hours in the twelve-month (12) period preceding the need for leave, may be eligible for up to sixteen (16) weeks of leave in any 24-month period. Leave may be granted for the birth or adoption of a child or placement of a child in foster care; to care for a seriously ill family member; or for the Employee’s own serious health condition. Leave under this provision may be taken on a continuous basis or where medically necessary for the employee’s own serious health condition, on an intermittent basis. DCFMLA leave is unpaid, but Employees who take leave under this provision may elect to use any accrued paid time off. Employees who require DCFMLA leave under this provision should give thirty (30) days’ advance notice where possible. If not possible to give thirty (30) days’ notice, then the Employee should give notice of the need for leave as soon as possible. Employees requesting leave under this provision for their own or their family member’s serious health condition will be required to present a completed a health care provider certification. Leave taken under DCFMLA runs concurrently with Family and Medical Leave under Federal law (FMLA). Sick Leave Ordinance Employees working in the District of Columbia are entitled to one hour of paid sick leave for every eighty-seven (87) hours worked to a maximum of twenty-one (21) hours. To the extent that Employees receive vacation, sick, or personal leave in an amount that meets or exceeds the sick leave required under this ordinance, this ordinance will not apply to those Employees. Available unused paid leave carries over from year to year up to the maximum leave limits and does not need to be paid out at time of separation School Activities Employees who are parents may take up to twenty-four (24) hours during any twelve-month (12) period to attend or participate in school-related events in which they have a child participating. 72 BC INTERNATIONAL GROUP, INC. EMPLOYEE HANDBOOK

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For the sake of this provision, “parent” includes: (1) biological parents; (2) persons with legal custody of a child; (3) persons who act as a child’s guardian regardless of whether they have been appointed legally; (4) aunts, uncles, or grandparents; (5) spouses of any of the above listed persons. Employees must provide notice, when possible, at least ten (10) days in advance. BCI may deny a request for such leave only if granting leave would disrupt business and make achievement of production or service delivery unusually difficult. Leave will be unpaid unless the employee elects to use any paid leave available to him or her. Employees will not lose any employment benefit or seniority accrued before or during the time of leave. Notice of the availability of this leave will be posted in a conspicuous place. Bone Marrow Donation Employees are eligible for up to thirty (30) hours of leave in a calendar year to undergo a medical procedure to serve as an organ donor and up to seven (7) hours of leave in a calendar year to donate bone marrow. BCI will require verification of the procedure and the length of the leave by a physician. Reasonable prior notice should be given by the Employee to his/her Supervisor or Human Resources. This time will be with pay, and the Employee does not have to use a vacation, sick, or personal day.

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STATE OF ILLINOIS ADDENDUM The following applies ONLY to Employees working in the State of Illinois: Equal Employment Opportunity When making hiring or termination decisions, there will be no consideration by BCI of sealed records or any expunged arrest record. Available and Unused Vacation, Sick, and Personal Time Available, unused vacation, and personal time is paid out upon separation of employment, whether such separation is voluntary or involuntary. However, the Company will not compensate Employees for unused sick time. School Visitation Leave Employees with a child (biological, adopted, foster child, stepchild, or legal ward) who is enrolled in a primary or secondary public or private school may take up to eight (8) hours of unpaid leave during any school year to attend school conferences or classroom activities, when such activities cannot be scheduled during non-work hours. School visitation leave cannot exceed four (4) hours in one day. In order to be eligible for this leave, an Employee must have been employed by BCI for at least six (6) months and must have worked an average number of hours per week that is at least half of the full-time hours for their job position. If the Employee has any vacation, sick and personal time available at the time of the leave, vacation, sick and personal time must be used for this leave. Employees must provide BCI with a written request to take this leave at least seven (7) days in advance. Notice of 24 hours is required for emergency situations. Documentation of attendance at the school activity or conference is required. Victims’ Economic Security and Safety Act (“VESSA”) Leave An Employee who is a victim of domestic violence, or who has a family or household member who is a victim of domestic violence, is entitled to unpaid leave for the following activities:  to seek medical attention for or recovery from physical or psychological injuries caused by domestic or sexual violence to the Employee or Employee’s family or household member;  obtain victim services for the Employee or the Employee’s family or household member;  obtain psychological or other counseling for the Employee or Employee’s family or household member;  participate in safety planning, including temporary or permanent relocation or other actions to protect the victim from future domestic or sexual violence; or  seek legal assistance to ensure the victim’s health and safety, including participating in court proceedings. 74 BC INTERNATIONAL GROUP, INC. EMPLOYEE HANDBOOK

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Absences for the reasons listed above may not exceed 12 weeks in a 12 month period, and may be taken intermittently or on a reduced work schedule. If the absence also qualifies for family/medical leave under Federal and/or State law, and the Employee is eligible for such a leave, the absence will be counted against the Employee’s FMLA and/or applicable State law entitlement. Available vacation, sick and personal time can be substituted for unpaid leave. If the absence is for a family or household member, an Employee must provide certification. Certification requires the Employee to provide a sworn statement and one of the following: 

documentation from a victim services organization, attorney, clergy member, or medical or other professional who has provided assistance;



police or court record; or



other corroborating evidence.

Where practicable, an Employee requesting VESSA leave must provide BCI with at least fortyeight (48) hours notice. If advance notice is not possible, the Employee must provide certification, as described above, within a reasonable time after the absence. One Day Rest in Seven / Meal Breaks Employees will receive at least twenty-four (24) hours rest in every calendar week, in addition to the rest time provided at the end of the workday. Employees who work longer than seven and a half (7 1/2) continuous hours in a workday will be given an unpaid meal period of at least twenty (20) minutes, which must commence no later than the end of their fifth hour of work. The Employees’ Supervisor will schedule their meal period and they must not perform any work during the meal period. Employees may leave the premises during their meal period. It is important that Employees return to work promptly at the end of the meal period. Blood Donation Leave Employees who have been employed at BCI for at least six (6) months are allowed up to one (1) hour of paid leave every fifty-six (56) days to donate blood. Military Leave The Company will grant Employees a leave of absence, together with reemployment rights, in accordance with state and federal law, for military service. Employees requesting military leave must submit a copy of their military orders to Human Resources as soon as they receive them. Employees and new hires who have received an offer of employment and have enlisted or been drafted into the U.S. armed forces or state militia training, or who are ordered to active duty are considered to be on leave of absence. Those who receive honorable discharges or have evidence of satisfactory completion of service are entitled to be restored to the same or equivalent position, with the same increased in status, seniority, and wages that were earned by Employees 75 BC INTERNATIONAL GROUP, INC. EMPLOYEE HANDBOOK

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who were employed during the term of military services as the one held before leave, unless reinstatement is impossible because of the Company’s changed circumstances. If the Employee cannot perform the duties of the position he/she left because of a disability sustained during the military service, he/she shall instead be restored to another position for which he/she is qualified, with status, pay, and seniority consistent with the Employee’s circumstances unless impossible or unreasonable because of the Company’s changed circumstances. An eligible Employee who is a spouse, parent, grandparent, or child of a person called to military service may take unpaid leave, provided adequate notice is given, for thirty (30) days. The Company will allow such an Employee to maintain benefits at the Employee's expense. The number of days that a spouse or parent of someone called to military service can take under state law is reduced by the number of days of leave that he/she took pursuant to the similar provision in Section 102(a)(1) of the federal FMLA.

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STATE OF LOUISIANA ADDENDUM The following applies ONLY to Employees working in the State of Louisiana: Available and Unused Vacation, Sick, and Personal Time Available, unused vacation, and personal time will be paid out upon separation of employment, whether such separation is voluntary or involuntary. However, BCI will not compensate Employees for accrued unused sick time. Military Leave Employees reinstated after military leave will not be discharged without cause for one year after reinstatement. Also, service members will be allowed to continue making contributions to qualified retirement plans while on active duty. BCI will continue to contribute to a service member’s cash balance plan, if any, during that individual’s active duty. Finally, military leave time, sick time, and annual vacation time will continue to accrue while the service member is on duty. School Activities Employees who are parents may take up to sixteen (16) hours during any twelve-month (12) period to attend, observe or participate in their children’s conferences or classroom activities held at the child’s school or day care center. Generally, this leave is unpaid, but Employees may use any available paid time off. Substance Abuse Testing BCI will not discharge an Employee on the basis of first-time positive test findings without first performing a confirmatory re-test using a different method. An Employee who tests positive will be granted access to his/her records relating to the drug test. Any and all testing that may result in negative employment consequences will be performed in a certified laboratory.

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STATE OF MASSACHUSETTS ADDENDUM The following applies ONLY to Employees working in the State of Massachusetts: Definition of Spouse Wherever an Employee’s “spouse” is referred to throughout this Handbook, such reference will also include a reference to the Employee’s same-sex spouse. Equal Employment Opportunity BCI is committed to providing a workplace free from sexual and other forms of harassment. To that end, BCI will promptly address all complaints of harassment. In addition, if an Employee believes you have been subjected to sexual harassment, you may file a formal complaint with either or both of the government agencies set forth below. Using our complaint process does not prohibit you from filing a complaint with these agencies. Each of the agencies has a short time period for filing a claim (EEOC - 300 days; MCAD - 300 days): 

The United States Equal Employment http://www.eeoc.gov/field/boston/index.cfm



The Massachusetts Commission http://www.mass.gov/mcad/

Opportunity

Against

Commission

Discrimination

("EEOC"):

("MCAD"):

Available and Unused Vacation, Sick, and Personal Time Available, unused vacation, sick, and personal time is paid out upon separation of employment, whether such separation is voluntary or involuntary. Employees who are involuntarily terminated or laid off will be paid all wages due (including accrued, unused vacation, sick, and personal time) and owing to them on the day of termination. Employees who quit or resign will be paid on the next regularly-scheduled pay day. Rest Periods and Meal Breaks If an Employee works longer than six (6) hours in a workday, they will be given an unpaid meal period of at least thirty (30) minutes. The Employee’s Supervisor will schedule the meal period. Employees must not perform any work during their meal period. Employees may leave the premises during their meal period. It is important that Employees return to work promptly at the end of their meal period. Family and Medical Leave Act Leave Employees who are eligible for leave under the FMLA are entitled to an additional 24 hours of leave during any twelve month period, in addition to the leave set forth under the FMLA, to (1) participate in school activities directly related to the educational advancement of a son or daughter of the Employee, such as parent-teacher conferences or interviewing for a new school; (2) accompany the son or daughter of the Employee to routine medical or dental appointments, such as check-ups or vaccinations; and (3) accompany an elderly relative (over the age of 60) to routine medical or dental appointments, or other appointments related to the elder’s care, such as 78 BC INTERNATIONAL GROUP, INC. EMPLOYEE HANDBOOK

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interviewing at nursing or group homes. Employees must provide BCI with at least seven (7) days notice of their need for such leave when the leave is foreseeable, or, in the event leave is not foreseeable, as much notice as practicable. Employees will be required to utilize any available vacation, sick, or personal leave time while on such a leave. Maternity Leave Full-time female Employees who have completed at least three months of full-time employment, are entitled to up to eight (8) weeks of unpaid, job protected leave for giving birth or adopting a child, unless other Employees of equal length of service credit and status in the same or similar position have been laid off due to economic conditions or other changes in operating conditions affecting employment during the period of such maternity leave. Employees on maternity leave will be required to utilize all available vacation, sick, and personal leave. If an Employee is eligible for leave under the FMLA, this maternity leave will run concurrently with any available FMLA leave. Veterans Day/Memorial Day Participation Any Employee who is a veteran, and who desires to participate in a Veterans Day or Memorial Day exercise, parade or service shall be allowed and granted time off without pay to participate in such activities. Employees must request such time off from their Supervisor at least two (2) weeks in advance of such activity, and must provide proof of their military service/veteran’s status to Human Resources. Voting Time Employees are encouraged to vote, and may request unpaid time off for the first two hours after the polls are open to vote in any election. Employees should request time off to vote from their Supervisor at least two (2) working days prior to the Election Day. Advance notice is required so that the necessary time off can be scheduled at the beginning of their shift. Volunteer Civil Service Personnel No Employee shall be disciplined for taking unpaid time off to perform emergency duty as a volunteer firefighter. Official volunteer firefighters must alert their Supervisor that they may have to take time off for emergency duty and before doing so when possible. Employees must submit a statement signed by the chief of such fire department certifying the date and time such Employee responded to and returned from such emergency. Employees must use available vacation, sick, or personal time or must take such time off unpaid. Access to Personnel Records Employees who wish to review, or receive a copy of, their personnel file, must make a written request to Human Resources, with at least five (5) business days notice. Employees who disagree with the contents of their personnel file may submit a written statement explaining the Employee’s position which shall thereafter become a part of such Employee’s personnel record. Sundays A non-exempt Employee will be compensated for work on Sundays at a rate not less than one and one-half times the Employee’s regular rate of pay. 79 BC INTERNATIONAL GROUP, INC. EMPLOYEE HANDBOOK

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Military Leave BCI will grant unpaid leave for reserve military training to all non-temporary Employees for up to seventeen (17) days per calendar year. Employees will be reinstated to the same or similar position with the same status, pay, and seniority. The leave will not affect the Employee’s pay, benefits, or employment conditions.

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STATE OF MINNESOTA ADDENDUM The following applies ONLY to Employees working in the State of Minnesota: Equal Employment Opportunity BCI will not discriminate against any Employee or Applicant because that person receives federal, state, or local assistance, including medical assistance or because that person receives rental assistance or rent supplements from any federal, state, or local assistance. Rest Periods and Meal Breaks If an Employee works longer than eight (8) hours in a workday, the Employee will be given an unpaid meal period of at least thirty (30) minutes. The Employee’s Supervisor will schedule the meal period. Employees must not perform any work during the meal period. Employees may leave the premises during the meal period. It is important that Employees return to work promptly at the end of the meal period. Employees will also be given sufficient time to use the restroom every four (4) hours. School Visitation Employees are eligible for leave of up to a total of sixteen (16) hours during any twelve (12) month period to attend school conferences or school-related activities related to the Employee's child, provided the conferences or school-related activities cannot be scheduled during nonwork hours. When the leave cannot be scheduled during nonwork hours and the need for the leave is foreseeable, the Employee must provide at least seven (7) days notice in advance of such time off, and make a reasonable effort to schedule the leave so as not to unduly disrupt BCI’s operations. Employees may either take this time off as unpaid or substitute available vacation, sick, or personal time. Blood Donation Leave Employees will be granted limited paid time off in any calendar year to donate blood off premises, but must request such time, in advance from BCI, and must attempt to schedule such time as to not unduly disrupt BCI’s operations. Bone Marrow Donation Leave An Employee who averages at least twenty (20) hours of work per week is eligible for up to forty (40) hours of leave in a twelve (12) month rolling period to undergo a medical procedure to donate bone marrow. BCI will require verification of the procedure and the length of the leave by a physician. Reasonable prior notice should be given by the Employee to his/her Supervisor or Human Resources. This time will be with pay, and the Employee does not have to use a vacation, sick, or personal day. Birth or Adoption Leave Employees who have worked for BCI for at least twelve (12) months immediately before the need for leave and who have worked at least nine hundred seventy-five (975) hours in those 81 BC INTERNATIONAL GROUP, INC. EMPLOYEE HANDBOOK

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twelve (12) months are eligible for up to six (6) weeks of unpaid leave for the birth or adoption of a child. Leave taken under this provision generally must begin no later than six (6) weeks after the birth or adoption. Leave taken under this provision will run concurrently with FMLA leave. Access to Personnel Records Employees may review their personnel files, on BCI’s premises, no more often than every six (6) months during their employment. Employees who wish to review their personnel file must make a written request to Human Resources, with at least fourteen (14) business days notice. During their employment, Employees are not entitled to a copy of their personnel files, nor are they entitled to remove them (or any portion thereof) from the premises. Time off for Victims or Witnesses In a Criminal Proceeding If an Employee is a victim or is called as a witness to appear in court in a criminal proceeding, they will be permitted to take the necessary time off as required by law. Such time off is not paid. Employees must give their Supervisor as much advance notice as is practicable. The Company may require that the Employee provide documentation requiring their attendance as a witness. Domestic Abuse and Harassment Restraining Orders The Company will give a reasonable amount of unpaid time off to an Employee who needs to obtain relief under the Domestic Abuse Act or to obtain a harassment restraining order. An Employee must generally give forty-eight (48) hours advance notice for leave, if possible. The Company will determine the length of permissible leave on a case-by-case basis, and will not take any adverse action against an Employee based on his/her taking such leave. Election Day BCI recognizes, and will act in accordance with the law, to grant Employees time off to vote in statewide primaries, presidential primaries, general and congressional elections, and state senator or representative elections, where there is a conflict between polling and working hours. BCI will grant up to two hours off with pay on Election Day to provide Employees with the opportunity to vote. If asked, Employees must provide proof of having voted. Any other time taken off to vote will have to be vacation or personal time. Military Ceremonies The Company will give a reasonable amount of unpaid time off to an Employee who wishes to attend a send-off or homecoming ceremony for an immediate family member in active service, unless allowing the leave would be unduly disruptive to the Company. BCI may limit the leave to the actual time necessary to attend the ceremony, not to exceed one day’s duration per year. An Employee must generally give 48 hours advance notice for leave, if possible. The Company will not take any adverse action against an Employee based on his/her taking such leave.

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Immediate Family Member Killed or Injured in Active Military Service BCI will grant up to ten working days of unpaid leave to an Employee whose immediate family member has been killed or injured while engaged in active military service. The Company will not take any adverse action against an Employee based on his/her taking such leave. Substance Abuse Employees may be required to submit to drug and alcohol testing where there is a reasonable suspicion of substance abuse, after an accident occurring at work, or where an Employee has been required to go to a drug or alcohol rehabilitation program as a condition of remaining employed. Testing will be conducted only by a certified laboratory. Where an Employee tests positive for an illegal substance or alcohol, the sample will be sent for a confirmation test. If the confirmation test is also positive, within three days of receipt of a positive test result, BCI will provide an Employee who tests positive with written notice of his/her right to explain a positive test result. Employees and Applicants have the right to refuse to undergo drug or alcohol testing, but should know that the consequence of such refusal will be the withdrawal of their conditional offer of employment or the termination of their employment, respectively. Your continued employment with BCI is conditioned upon your full compliance with this Substance Abuse Policy. Any violation of this policy may result in discipline, up to and including termination. However, an Employee will not be terminated after his/her first confirmed positive test unless:  The Company has provided the Employee with an opportunity to participate in, at his/her own expense or pursuant to coverage under his/her health insurance plan, either a drug or alcohol counseling or rehabilitation, whichever is more appropriate; and  The Employee has either refused to participate in the counseling or rehabilitation program or has failed to successfully complete the program, as evidenced by withdrawal from the program before its completion or by a positive test result on a confirmatory test after completion of the program. BCI may temporarily suspend a tested Employee or transfer that Employee to another position at the same rate of pay pending the outcome of a confirmatory test and, if requested, the confirmatory retest, provided such action is reasonably necessary to protect the health or safety of the Employee, Co-employees, or the public. An Employee who has been suspended without pay will be reinstated with pack pay if the outcome of the confirmatory test or requested confirmatory retest is negative. Employees who fail a confirmatory test on a second, separate occasion will be subject to discipline, up to and including termination.

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STATE OF NEW JERSEY ADDENDUM The following applies ONLY to Employees working in the State of New Jersey: Definition of Spouse With limited exceptions, wherever an Employee’s “spouse” is referred to throughout this Handbook, such reference will also include a reference to the Employee’s registered domestic and/or civil union partner. Family and Medical Leave The New Jersey Family Leave Act (“NJFLA”) provides twelve (12) weeks of unpaid leave in a twenty-four (24) month period to Employees who have been employed for a twelve (12) month period and have actually worked 1,000 hours within the previous 12-month period. The 24 month period begins with the first day of leave taken, and like the FMLA, leave may be taken consecutively, intermittently, or on a reduced schedule basis. Under the NJFLA, eligible Employees may take leave to bond with a newborn, adopted, or foster placed child and to care for a family member (parent, parent-in-law, spouse, civil union partner, minor or disabled child) with a serious health condition, but not for their own serious health condition. Leave taken under the NJFLA will run concurrently with Family and Medical Leave under Federal law (“FMLA”), where appropriate. For more information on leave under the NJFLA – including eligibility requirements, notice obligations, and supporting documentation—Employees should contact Human Resources. New Jersey Family Leave Insurance Benefits Effective July 1, 2009, eligible Employees may be eligible for up to six (6) weeks of New Jersey Family Leave Insurance benefits for the birth of a child or placement of a newly adopted child, or to care for a child, parent, spouse or domestic partner suffering from a serious health condition, and will be able to collect up to two-thirds of their weekly salary to a maximum prescribed by law, subject to a one-week waiting period. This is solely a monetary benefit and not a leave of absence. Employees who will be out of work must also request a formal leave of absence. Employees seeking paid benefits are required to submit supporting documentation from a healthcare provider describing the nature and duration of the condition. Moreover, eligible Employees are required to provide advance notice of their need for leave, with the amount of notice dependent upon the nature of the leave (e.g., at least 30 days advance notice for the birth or adoption of a child). Employees who are eligible for New Jersey Family Leave Insurance benefits shall be required to use two weeks of vacation pay (if available) as part of the 6 weeks of total paid leave time provided under State law. Moreover, any leave taken pursuant to the Family Medical Leave Act (“FMLA”) or the New Jersey Family Leave Act (“NJFLA”) will run concurrent with approved New Jersey Family Leave Insurance benefits, where appropriate. For those Employees on a 84 BC INTERNATIONAL GROUP, INC. EMPLOYEE HANDBOOK

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FMLA/NJFLA leave, the Employee shall be required to use accrued paid time off as set forth in the Company’s Family and Medical Leave of Absence policy after their Family Leave Insurance benefits have expired. Employees requesting additional information about Family Leave Insurance benefits—including eligibility requirements, notice obligations, and supporting documentation—should contact Human Resources This is solely a monetary benefit and not a leave of absence. Employees who will be out of work must also request a formal leave of absence. Statutory Short-Term Disability Statutory short-term disability insurance known as State Disability Insurance (SDI) is provided by the State of New Jersey. State withholdings from Employees’ paychecks fund this benefit. Employees will receive a pamphlet from Human Resources upon hire to educate them about the benefit. It is each Employee’s responsibility to apply for such benefits when appropriate. Domestic Violence Leave An individual employed for at least twelve (12) months and at least one thousand (1,000) base hours during the immediately preceding twelve-month (12) period (1) who is a victim of an incident of domestic violence or a sexually violent offense, or (2) whose child, parent, spouse, domestic partner, or civil union partner (“relative”) is such a victim, is entitled to 20 days of unpaid leave in the twelve-month (12) period following the incident of domestic violence or sexual assault. An Employee is entitled to twenty (20) days of leave for any subsequent incident of domestic violence or sexual assault within twelve (12) months of that incident; however, Employees are limited to no more than twenty (20) days of leave over any rolling twelve-month (12) period. The leave may be taken intermittently in intervals of no less than a day, for the following reasons: 

seeking medical attention for, or recovering from, physical or psychological injuries caused by domestic or sexual violence to the employee or the Employee’s relative;



obtaining services from a victim services organization for the Employee or the Employee’s relative;



obtaining psychological or other counseling for the Employee or the Employee’s relative;



participating in safety planning, temporarily or permanently relocating, or taking other actions to increase the safety of the Employee or the Employee’s relative from future domestic or sexual violence or to ensure economic security;



seeking legal assistance or remedies to ensure the health and safety of the Employee or the Employee’s relative, including preparing for, or participating in, any civil or criminal legal proceeding related to or derived from domestic or sexual violence; or



attending, participating in, or preparing for a criminal or civil court proceeding relating to an incident of domestic or sexual violence of which the employee or the Employee’s relative was a victim. 85

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An eligible Employee must use his/her accrued paid vacation leave, personal leave, or medical or sick leave while taking domestic violence leave. In such cases, the Employee’s paid leave will run concurrently with his/her unpaid leave. Similarly, if an Employee requests leave for a reason covered by both the New Jersey Domestic Violence Victim Leave Law and the New Jersey Family Leave Act or the Federal Family and Medical Leave Act, the leave will count simultaneously against the Employee’s entitlement under each respective law. Employees seeking leave under the Act must provide the Company with advance written notice when such leave is foreseeable, as far in advance as is reasonably practical under the circumstances. BCI may require documentation from Employees to substantiate the need for leave. Military Leave Employees called to active duty or reserve training have ninety ( 90) days from the date they are relieved from military service to apply for reemployment, regardless of the amount of time spent in the service. Such Employees will not be discharged without just cause for one (1) year after reemployment.

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STATE OF NEW YORK ADDENDUM The following applies ONLY to Employees working in the State of New York: Definition of Spouse With limited exceptions, wherever an Employee’s “spouse” is referred to throughout this Handbook, such reference will also include a reference to the Employee’s registered domestic partner, or same-sex spouse, when those partnerships/marriages were performed in a state or jurisdiction legally authorized to perform such partnerships/marriages. Equal Employment Opportunity When making hiring or termination decisions, there will be no consideration by BCI of sealed records or any arrest record that did not result in a conviction, except that BCI may consider any pending arrests if the pending charge is directly related to the Employee’s job duties. BCI will analyze criminal convictions on a case-by-case basis to determine if the conviction is directly related to the Employee’s job and would be disqualifying. Statutory Short-Term Disability Statutory short-term disability insurance known as State Disability Insurance (SDI) is provided by the State of New York. State withholdings from Employees’ paychecks fund this benefit. Employees will receive a pamphlet from Human Resources upon hire to educate them about the benefit. It is each Employee’s responsibility to apply for such benefits when appropriate. This is solely a monetary benefit and not a leave of absence. Employees who will be out of work must also request a formal leave of absence. Blood Donation Leave Employees will be granted time off of up to three (3) hours in any calendar year to donate blood off premises. Such leave is unpaid. Employees will also be allowed to donate blood during work hours at a convenient time and place set by the employer at a Company-designated donation alternative (e.g. an employer-sponsored blood drive at the workplace) without loss of pay. Bone Marrow Donation Leave Employees working an average of twenty (20) or more hours per week and are entitled to unpaid leave for the purpose of undergoing a procedure to donate bone marrow. The combined amount of leave may not exceed twenty-four (24) work hours. BCI may require verification by a physician for the purpose and length of each leave requested. BCI will not retaliate against Employees who request or obtain such leave. Voting Leave Employees working in the State of New York will be given time off to vote in any election if they do not have four consecutive nonworking hours when the polls are open. If Employees need time off to vote, such time will be unpaid. Employees should request time off to vote from their 87 BC INTERNATIONAL GROUP, INC. EMPLOYEE HANDBOOK

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Supervisor at least two (2) working days prior to the Election Day. Advance notice is required so that the necessary time off can be scheduled at the beginning or end of the work shift, whichever provides the least disruption to the normal work schedule, as determined by the Employee’s Supervisor. Time off for Victims or Witnesses In a Criminal Proceeding If an Employee is a victim or is called as a witness to appear in court in a criminal proceeding, they will be permitted to take the necessary time off as required by law. Such time off is not paid. Employees must give their Supervisor as much advance notice as is practicable. The Company may require that the Employee provide documentation requiring their attendance as a witness. Leave for Spouse of Member of Armed Forces If an Employee is the spouse of a member of the Armed Forces of the United States, National Guard, or Reserves, and works an average of twenty (20) or more hours per week, they will be allowed up to ten (10) days of unpaid leave when the Employee’s spouse who has been deployed during a period of military conflict to a combat theater or combat zone of operations, is on leave from such combat service. This leave will run concurrently, where appropriate, with leave under the FMLA. One Day’s Rest in Seven Employees working in New York will be granted at least twenty-four (24) consecutive hours off in any calendar week.

CITY OF NEW YORK, NY ADDENDUM In addition to the above provisions, BCI will not discriminate against any Applicant simply because that person is unemployed at the time of application. Applicants may still be asked to explain the circumstances by which they became unemployed.

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STATE OF NEVADA ADDENDUM The following applies ONLY to Employees working in the State of Nevada: Definition of Spouse Wherever an Employee’s “spouse” is referred to throughout this Handbook, such reference will also include a reference to the Employee’s registered domestic partner. Equal Employment Opportunity BCI will also not require that any Employee submit to a genetic test as a condition of employment. Overtime Non-exempt Employees generally will be paid overtime at the rate of time and one-half (1½) times their normal hourly wage for all hours worked in excess of forty (40) hours in one week, or, in the event Employees earn less than one and one-half times the minimum wage, overtime in excess of eight (8) hours in one day. Employees may work overtime only with management authorization. Rest Periods and Meal Breaks Full Time Employees are entitled to one (1) ten (10)-minute rest break for every four (4) hours worked each day. Employees will be paid for these rest breaks. The Employee’s Supervisor will advise them of the time of breaks. Employees are expected to return to work promptly at the end of any break. If an Employee works eight (8) hours or more in a workday, they will be given an unpaid meal period of at least thirty (30) minutes. The Employee’s Supervisor will schedule the meal period. Employees must not perform any work during their meal period. Employees may leave the premises during their meal period. It is important that Employees return to work promptly at the end of their meal period. Voting Leave Employees who are unable to vote before or after their hours of employment may request paid time off to vote. The amount of time off granted will be based upon the distance between BCI/the Partner Store, and the Employee’s polling place. Employees must request such time off in advance of Election Day. Access to Personnel Records Employees who wish to review, or receive a copy of, their personnel file, must make a written request to Human Resources, with at least five (5) business days notice. Employees who disagree with the contents of their personnel file may submit a written statement explaining the Employee’s position which shall thereafter become a part of such Employee’s personnel record.

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School Visitation Employees are permitted four (4) hours of unpaid leave per school year to attend parent-teacher conferences or conferences requested by an administrator of any school attended by the Employee’s child, to volunteer or otherwise be involved at school during regular school hours, or to attend school-sponsored events.

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STATE OF PENNSYLVANIA ADDENDUM The following applies ONLY to Employees working in the State of Pennsylvania: Access to Personnel Records Employees may review their personnel files on BCI’s premises during their employment no more than once per year. Employees who wish to review their personnel file must make a written request to Human Resources, setting forth their reasons for the inspection, and which parts of the file they wish to inspect. During their employment, Employees are not entitled to a copy of their personnel files, nor are they entitled to remove them (or any portion thereof) from the premises. Equal Employment Opportunity BCI will not discriminate in any condition of employment on account of the fact that an Employee or Applicant requires the use of a service animal due to a handicap. BCI will make no distinction between a G.E.D. and a high school diploma. Where it is determined that it is a bona fide occupational qualification for an Employee to hold a high school diploma, an Employee or Applicant with a G.E.D. will be considered to have met this requirement.

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STATE OF RHODE ISLAND ADDENDUM The following applies ONLY to Employees working in the State of Rhode Island: Family and Medical Leave The Rhode Island Parental and Family Medical Leave Act (“RIPFMLA”) provides thirteen (13) consecutive workweeks of unpaid parental leave or family leave every two (2) calendar years to Employees who have been employed for a twelve (12) month period and have worked an average of thirty (30) hours per week within the previous twelve (12) month period. Under the RIPFMLA, eligible Employees may take leave to bond with a newborn, adopted, or foster placed child (under the age of 16); to care for their own serious health condition; and to care for a family member (parent, parent-in-law, spouse, or minor or disabled child) with a serious health condition. Leave taken under the RIPFMLA will run concurrently with Family and Medical Leave under Federal law (“FMLA”), where appropriate. For more information on leave under the RIPFMLA—including eligibility requirements, notice obligations, and supporting documentation—Employees should contact Human Resources. Access to Personnel Records Employees who wish to review, or receive a copy of, their personnel file, must make a written request to Human Resources, with at least seven (7) business days notice. Employees may only review their personnel files on BCI premises, and in the presence of a BCI Supervisor. Employees are able to review their personnel file two (2) times per year. School-Related Leave If an Employee is a parent, guardian, or grandparent having custody of a child, and has worked for BCI for at least twelve (12) consecutive months, he/she is entitled to take off a total of ten (10) hours each year to participate in activities of the child’s school. Employees must give their Supervisor reasonable notice (at least twenty-four hours in advance), and must attempt to schedule such activities so that they do not disrupt working time. Employees may either take this time off as unpaid or substitute available vacation, sick, or personal time. The Employee’s Supervisor can request documentation from the school as proof that they are participating in the activities on a specific day and time. Substance Abuse Testing Employee testing is authorized on reasonable suspicion of substance abuse. Confirmation tests will be conducted in the case of positive findings. An Employee who tests positive will have the opportunity to rebut test findings. BCI will not terminate Employees upon their first positive confirmation test. Rather, an Employee who tests positive will first be referred to a substance abuse professional for assistance. However, if additional testing shows continued use despite treatment or the Employee refuses to go to a substance abuse professional for assistance, BCI may take disciplinary action against the offending employee, up to and including immediate termination of employment. 92 BC INTERNATIONAL GROUP, INC. EMPLOYEE HANDBOOK

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BCI will not refuse to employ or otherwise discriminate against a qualifying patient who has a medical marijuana registry identification card solely based on his/her status as a registered qualifying patient. However, BCI will not accommodate the use of marijuana in any workplace.

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STATE OF TENNESSEE ADDENDUM The following applies ONLY to Employees working in the State of Tennessee: Voting Leave Employees who are unable to vote before or after their hours of employment may request up to three (3) hours of paid time off to vote. Employees must request such time off in advance of election day, however, BCI reserves the right to determine what time of day the Employee shall use to vote, based on scheduling needs. Substance Abuse Employees may be tested for illegal drugs or alcohol where there is a reasonable suspicion of substance abuse or after an on-the-job accident. If an Employee tests positive for illegal drugs or alcohol, the Employee will be given an opportunity to try to explain the findings. Employees should be aware that if the test results are positive and they cannot adequately explain the results, they may be terminated. Under Tennessee law, if an Employee is terminated because he/she tested positive for drugs or alcohol, that Employee is ineligible for unemployment benefits. Employees who test positive for drugs or alcohol after a work-related accident may also forfeit their rights to workers’ compensation benefits.

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REVISION 1.3 MARCH 2015

STATE OF TEXAS ADDENDUM The following applies ONLY to Employees working in the State of Texas: One Day Rest in Seven Employees will receive at least twenty-four (24) hours rest in every calendar week, in addition to the rest time provided at the end of the workday. Employees Participating in Emergency Evacuations If an emergency evacuation order is issued by the State of Texas due to a natural or man-made disaster and which requires the closure of BCI, Employees will be expected to comply with the order and evacuate. Employees who evacuate work pursuant to such an order will not be discharged for leaving work.

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REVISION 1.3 MARCH 2015

STATE OF VIRGINIA ADDENDUM The following applies ONLY to Employees working in the State of Virginia: Time off for Victims or Witnesses In a Criminal Proceeding If an Employee is a victim or is called as a witness to appear in court in a criminal proceeding, they will be permitted to take the necessary time off as required by law. Such time off is not paid. Employees must give their Supervisor as much advance notice as is practicable. The Company may require that they provide documentation requiring the Employee’s attendance as a witness.

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REVISION 1.3 MARCH 2015

STATE OF WISCONSIN ADDENDUM The following applies ONLY to Employees working in the State of Wisconsin: Equal Employment Opportunity When making hiring or termination decisions, there will be no consideration by BCI of any arrest record that did not result in a conviction, except that BCI may consider any pending arrests if the pending charge is substantially related to the Employee’s job duties. BCI will analyze criminal convictions on a case-by-case basis to determine if the conviction is substantially related to the Employee’s job and would be disqualifying. BCI will also not require that any Employee submit to a genetic test, a polygraph or any other “honesty test” as a condition of employment. Definition of Spouse With limited exceptions, wherever an Employee’s “spouse” is referred to throughout this Handbook, such reference will also include a reference to the employee’s registered domestic partner. Access to Personnel Records Employees who wish to review, or receive a copy of, their personnel file, must make a written request to Human Resources, with at least seven (7) business days notice. Employees are able to review their personnel file two (2) times per year. Wisconsin Family and Medical Leave Act An Employee working for BCI for at least fifty-two (52) consecutive weeks and who has worked or been paid for at least one thousand (1,000) hours during the preceding fifty-two-week (52) period may take leave for the birth of a child, the placement of a child with the Employee for adoption or as a precondition for adoption, and for caring for an Employee’s child, spouse, domestic partner or parent with a serious health condition. Medical leave can also be taken for the Employee’s serious health condition. The following leave amounts are available in a twelve-month (12) period: 

Up to six (6) weeks for the birth of the Employee’s child, the placement for adoption or the as precondition of adoption, provided that leave is taken within sixteen (16) weeks of the birth or placement; and



Up to two (2) weeks to care for a child, spouse, domestic partner, or parent with a serious health condition or for the Employee’s own serious condition.

Where an Employee may need leave for multiple covered reasons in a twelve-month (12) period, the Employee may take no more than a combination of eight (8) weeks leave in any twelvemonth (12) period. 97 BC INTERNATIONAL GROUP, INC. EMPLOYEE HANDBOOK

REVISION 1.3 MARCH 2015

Employees may take intermittent leave. Employees must provide BCI advance notice of the need for family or medical leave and, with respect to planned medical treatment for the Employee or a family member, schedule leave so that it does not unduly disrupt BCI’s operations, subject to the approval of the Employee’s health care provider. BCI may require certification, but will only seek the following information from the Employee’s health care provider: (1) the fact that the Employee or family member has a serious health condition; (2) the date the serious health condition commenced and its probable duration; (3) the medical facts regarding the serious health condition; and (4) if the Employee requests medical leave, an explanation of the extent to which the Employee is unable to perform the job. At the Employee’s option, he/she may substitute paid or unpaid leave of any type that has accrued to the Employee for all or a portion of family or medical leave. BCI will also provide leave benefits to eligible Employees for the serious health condition of the Employee’s domestic partner or the domestic partner’s parent. Leave taken under this provision will run concurrently with FMLA leave, where applicable.

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REVISION 1.3 MARCH 2015

________________________________________________________________________ Acknowledgment of Employee Handbook Copies are available under HR downloads on the BC website in the HR Download Section

By signing below, I acknowledge that: 1. I have received and read the BCI Employee Handbook, and agree to comply with its terms; 2. Any violation of the Company’s policies and procedures is considered serious and will result in disciplinary action up to and including the immediate termination of my employment; and

3. Any violation of loss prevention policies and procedures could result in prosecution by law enforcement agencies

I further understand that BCI reserves the right to unilaterally change and modify policies, standards and procedures at any time, without prior notice, and that although this Handbook describes the general guidelines of BCI’s rules and policies, it is not a contract. I further understand that my employment is “at will”, meaning that regardless of any provision in this Handbook, it can be terminated with or without cause and with or without notice at my option, or the option of BC International Group, Inc.

Print Name:__________________________ Store:______________________

Signature:__________________________

Date: ______________________

Please mail this signed document immediately to: BC International Group, Inc Attn: Human Resources Department 922 Riverview Drive Totowa, NJ 07512 99 BC INTERNATIONAL GROUP, INC. EMPLOYEE HANDBOOK

REVISION 1.3 MARCH 2015