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K and J Wireless Holding , IncEmployee Handbook Revised 1/25/2014

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Table of Contents

I. WELCOME.....................................................................................................................................41.1.WELCOME ABOARD!.............................................................................................................................41.2EMPLOYEE HANDBOOK..........................................................................................................................51.3.EMPLOYMENT STATUS.........................................................................................................................5Non-Exempt Employees.............................................................................................................................5Exempt Employees.....................................................................................................................................5

II. OPERATIONS................................................................................................................................52.1. STANDARDS OF CONDUCT...................................................................................................................52.2. EMPLOYEE CONDUCT AND WORK PERFORMANCE...............................................................................62.3. AVAILABILITY FOR WORK.....................................................................................................................72.4. ABSENTEEISM AND PUNCTUALITY.......................................................................................................72.5. PERSONAL APPEARANCE......................................................................................................................82.6. NEATNESS OF WORK AREA..................................................................................................................92.7. COMMUNICATION - PROBLEM RESOLUTION........................................................................................92.8. MEDIA AND PUBLIC RELATIONS...........................................................................................................92.9. EMPLOYEE RELATIONS.........................................................................................................................92.10. DISCIPLINARY GUIDELINES.................................................................................................................92.11. CONFLICTS OF INTEREST.....................................................................................................................92.12. CONFIDENTIALITY OF COMPANY INFORMATION................................................................................92.13. ANTI-FRAUD AND THEFT..................................................................................................................102.14. SAFETY.............................................................................................................................................102.15. VIOLENCE AND WEAPONS POLICY....................................................................................................102.16. WORKPLACE MONITORING AND SEARCHES.....................................................................................112.17 SUBSTANCE ABUSE...........................................................................................................................112.18. COMPANY PROPERTY.......................................................................................................................122.19. OFFICE EQUIPMENT.........................................................................................................................122.21. COMPANY MEETINGS......................................................................................................................132.22. PERSONAL TELEPHONE CALLS...........................................................................................................132.23. PERSONAL MAIL...............................................................................................................................132.24. SEVERE WEATHER............................................................................................................................132.25. SUGGESTIONS..................................................................................................................................13

III. EMPLOYMENT...........................................................................................................................133.1. ORIENTATION....................................................................................................................................133.2. EQUAL EMPLOYMENT OPPORTUNITY.................................................................................................143.3. HARASSMENT....................................................................................................................................143.4. CRIMINAL CONVICTIONS....................................................................................................................153.5. PERSONNEL FILE.................................................................................................................................153.6. EMPLOYMENT REFERENCES...............................................................................................................163.7. OUTSIDE EMPLOYMENT.....................................................................................................................163.8. REHIRING FORMER EMPLOYEES.......................................................................................................163.9. POLYGRAPH EXAM...........................................................................................................................16

IV. COMPENSATION........................................................................................................................174.1. EMPLOYMENT CLASSIFICATION..........................................................................................................174.2. HOURS OF WORK...............................................................................................................................174.3. LUNCH BREAKS..................................................................................................................................174.4. RECORDING TIME...............................................................................................................................174.5. OVERTIME.........................................................................................................................................17

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4.6. SALARY AND WAGE INCREASES..........................................................................................................174.7. PAYROLL............................................................................................................................................184.8. PERFORMANCE REVIEWS...................................................................................................................18

V. BENEFITS...................................................................................................................................185.1. THE BENEFITS PROGRAM...................................................................................................................185.2. BENEFIT ELIGIBILITY...........................................................................................................................185.3. HOLIDAYS..........................................................................................................................................185.4. PAID TIME OFF...................................................................................................................................195.5 BEREAVEMENT LEAVE.........................................................................................................................195.6. SOCIAL SECURITY...............................................................................................................................195.7. PRE-TAX DEDUCTIONS.......................................................................................................................195.8 MILITARY LEAVE.................................................................................................................................205.9 FAMILY MEDICAL LEAVE ACT (FMLA)...................................................................................................205.10 WORKERS’ COMPENSATION..............................................................................................................205.11. JURY DUTY.......................................................................................................................................215.12. UNEMPLOYMENT COMPENSATION..................................................................................................215.13. TRAVEL EXPENSES............................................................................................................................215.14. REIMBURSABLE EXPENSES...............................................................................................................215.16. EMPLOYEE PURCHASES....................................................................................................................21

VI. SEPARATION.............................................................................................................................216.1. GENERAL - PROBATIONARY PERIOD...................................................................................................216.2. JOB ABANDONMENT.........................................................................................................................216.3. VOLUNTARY RESIGNATION................................................................................................................216.4. PERFORMANCE-BASED RELEASE.........................................................................................................226.5. ACTS OF MISCONDUCT.......................................................................................................................226.6. OTHER FORMS OF SEPARATION.........................................................................................................226.7. TERMINATION PROCEDURES..............................................................................................................22

6.8. ACKNOWLEDGMENT OF RECEIPT AND UNDERSTANDING OF EMPLOYEE HANDBOOK..............22

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I. WELCOME

1.1. WELCOME ABOARD!

We are pleased that you have decided to join the K and J Wireless family. We would like to take this opportunity, to welcome you and introduce you to our Company policies, procedures and benefits available to eligible employees.

We hope that you will see your new position as not only a job, but as a career.

Again, welcome to our family. We are proud to have you with us.

Sincerely,

Keun Woo JonJordan Kim

1.2. EMPLOYEE HANDBOOK

This employee handbook has been prepared to help familiarize employees with some of K and J Wireless, Inc (herein referred to as the Company) policies. It also outlines many of the benefits and services provided to you as an employee.

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The Company reserves the right to add, modify, supplement, rescind, or revise its policies, programs and benefit plans at any time, without advance notice. The Company also reserves the right to make individual exceptions to these policies and procedures. Any exception granted by the Company is not intended to prevent and does not restrict its right to insist on adherence to the policy or practice in the future. Violation of any of the Company’s policies and/or procedures may result in disciplinary action up to and including termination.

1.3. EMPLOYMENT STATUS

The policies and procedures presented in this handbook are in no way to be interpreted or construed as a contract of employment or guarantees of continued employment for any specific period of time. No verbal communication or written document will provide such a contract, assurance, or guarantee unless specified in writing and signed by a company official who is authorized to enter into such agreement.

Your compensation, hours of employment, and all other terms and conditions of employment are subject to modification by the Company at its discretion. This information is confidential and should never be discussed with another employee.

Employment with the Company is “at will”, which means that either the employee or the Company have an equal right to sever the employment relationship at any time, with or without advance notice or cause, except as dictated by law.

Employee’s providing false, incomplete or misleading information on the employment application or at any time in the employment process will be subject to immediate termination.

Non-Exempt EmployeesA non-exempt employee is a worker who is covered under the FLSA, and paid minimum wage and overtime as applicable. Non-exempt workers are also called "hourly employees."

Exempt EmployeesExempt employee is paid salary. Executive employees can be exempt. An executive is an employee who has control over two or more employees, and has a say in the personnel decisions.

II. OPERATIONS2.1. STANDARDS OF CONDUCT

The Company is committed to conducting its business affairs honestly and with integrity. This commitment applies to our relationships with competitors, customers, vendors and employees. Each employee must maintain the highest standards of personal and professional ethics. These rules, practices and policies concerning conduct and behavior (“Standards”) are instrumental to the continued success of the company.

An employee should not conduct business that is not in the full spirit of honest and ethical behavior, nor should an employee cause another employee, or non-employee, to act or behave in such a manner, either through inducement, suggestion, or coercion. Furthermore, an employee should not furnish confidential company, employee or competitor information to any individual, business or entity without first consulting with and acquiring the approval of their manager.

Each employee is expected to report dishonest/unsafe activities by other employees to their manager or the Human Resources Department. Failure to report such activities is considered a violation of the Standards. Knowingly submitting false information is also considered a violation of the Standards.

Initiating or encouraging reprisal action against an employee or other person who, in good faith, reports known or suspected Standards violations are prohibited.

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Violation of any company policy will result in disciplinary action, up to and including termination.

2.2. EMPLOYEE CONDUCT AND WORK PERFORMANCE

Employees are expected to conduct themselves in a professional manner at all times; demonstrating a positive attitude, respect for co-workers, our customers and their property.

The following guidelines have been developed to communicate the Standards of the Company. Each employee is expected to:

Report to work punctually, as scheduled, and be at the assigned work station, ready for work, at the assigned starting time; Clock in as your arrive and Clock out as you leave. Employee must clock in and out during breaks and lunches.

All employees must check their store email and Google Drive after they clock in and begin work for updates on company policies and AIO sales information.

Notify their direct supervisor when unable to report to work, or unable to report for work on time; Actively work during all work hours; Complete the duties and responsibilities of the position and/or given by the supervisor daily; Behave competently and deal with customers in a professional and respectful manner; Follow up on orders, complaints and questions promptly. Provide professional responses to requests

and perform all duties in an orderly manner; Comply with all performance/conduct and safety/security policies and procedures of the Company; Wear appropriate business attire/uniform in accordance with the company dress code; Perform assigned tasks efficiently and correctly; Address fellow employees, customers and visitors in a professional, courteous and respectful manner; Maintain work place and work area cleanliness; Refrain from behavior or conduct deemed offensive or undesirable; Obtain approval from a manager before removing any company property for company or personal use. Take pride in your work and enjoy doing your very best. Achieving sales goals.

Performance

All sales employees are required to attend actively participate in all trainings required by AIO Wireless and K and J Wireless, Inc. Should an employee's performance, attendance, attitude, or conduct not meet the Standards of Conduct, they will be released from employment. Release or voluntary resignation during this period will not have an adverse effect on an employee's records.

The following definitions and classifications are examples of violations for which corrective counseling or other disciplinary action may be taken.

Examples of performance issues include, but are not limited to:

Excessive absenteeism, tardiness or failure to report to work; Failure to meet performance and work quality standards; Use of unapproved electronics while working. Abusive or unauthorized use of company supplies and equipment; Failure to adhere to safety/security regulations, procedures and policies; Failure to immediately report an accident or job-related injury.

Examples of inappropriate behavior and misconduct include, but are not limited to:

Reporting to work intoxicated / under the influence of alcohol or non-prescribed drugs; Possession or use of alcoholic beverages on company property;

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Consumption of alcoholic beverages while engaged in company business, on company time or while in company uniform, except where authorized;

Falsifying employment or any other company records; Submitting a fraudulent injury claim; Failure to maintain the confidentiality of company information or business records;

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Discrimination; Harassment, sexual or otherwise; Fighting or otherwise physically assaulting another employee, customer or another person on Company

property. Use of obscene, abusive, or threatening language and/or gestures; Theft or misappropriation of property from co-workers, customers, the Company or visitors of the

Company; Misuse, abuse or destruction of company property; Gambling on company property or company time; Possession, sale or use of firearms or other weapons on company premises or while on company

business; Refusal to follow management’s directions or instructions concerning any job-related function; Insubordination; Deliberate concealment of another employee’s misconduct; Posting, removing or defacing notices, signs or writings on company property without proper permission; Embezzlement/theft of any money or property belonging to the Company; Violation of or failure to adhere to the rules of operation or conduct established by the Company; Any behavior or practice, whether or not mentioned in this Handbook, inconsistent with the ordinary and

reasonable conduct necessary for a productive work atmosphere.

2.3. AVAILABILITY FOR WORK

Employees are hired, in part, based on their availability to work. If, for any reason, there is a change in an employee’s availability, the Company should be notified in writing at least ten days prior to the change. The Company will make a reasonable attempt to modify the employee’s work schedule. An employee may be transferred among various stores in surrounding cities to accommodate the needs of the company

2.4. ABSENTEEISM AND PUNCTUALITY

Daily attendance is expected for all Company employees. Employees must notify the proper management personnel when they will be absent from or late to work. In the event of an unexpected emergency, management should be notified as early as possible.

Sick Days: If an employee is away from work due to sickness for 3 consecutive days you may be required to provide doctors note clearly stating the reason for absence from work.If sick days are excessive, Excessive defined as six or more occurrences in a month The Company can request for additional supporting documentation.Providing false medical notes will result in disciplinary action and leading up to termination.

Calls from individuals other than the employee will not be accepted as appropriate notice unless approved by management.

Excessive tardies or absences is a violation of company policy and is subject to disciplinary action, up to and including termination.

2.5. PERSONAL APPEARANCE

Employees are expected to dress appropriately for their position and work environment. The following dress code is intended to assist the store employees in meeting company standards for cleanliness and personal appearance:

All employees are required to maintain the highest standards relating to personal hygiene including regular bathing, clean hands and fingernails, clean shaved or trim beard;

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All employees are expected to begin the workday in neat and clean clothing; Belt (if pants have belt loop attached); Socks/Nylons; Closed toed dress shoes (solid color) for sales and warehouse. Ladies: dresses/skirts (must be no more than 3” above the knee);

Hats and Head Covering

Hats are not appropriate in the office. Head Covers that are required for religious purposes or to honor cultural tradition are allowed.

Personal Hygiene – Maintaining well-kept hair, good personal hygiene, and general neat grooming is expected.

A list of unacceptable attire for sales and corporate employees includes, but is not limited to:

Torn jeans; Shorts;/mini shorts Hats, caps or bandanas; Flip Flops Sweat pants, exercise pants;

In the event an employee fails to meet these standards, as determined by the employee’s supervisor and Human Resources staff, the employee will be asked not to wear the inappropriate item to work again. If the problem persists, the employee may be sent home to change clothes and will receive a warning for the first offense. All other policies about personal time use will apply. Progressive disciplinary action will be applied if dress code violations continue.

2.6. NEATNESS OF WORK AREA

It is the Company’s policy to keep all areas of the business neat, clean and professional in appearance.

Each employee is responsible for keeping his/her personal work area clean and uncluttered. Inappropriate or distasteful pictures, posters or calendars are not permitted on Company property.

2.7. COMMUNICATION - PROBLEM RESOLUTION

The cornerstone of effective communication is the employee-supervisor relationship. If an employee has a problem or concern, he or she should discuss it with their immediate supervisor or the Human Resources Department.

2.8. MEDIA AND PUBLIC RELATIONS No one other than the CEO or designated spokesperson is to represent the Company’s position to the media on any topic. Any and all inquires should be directed to the corporate office.

2.9. EMPLOYEE RELATIONS Having complete confidence in its management staff and employees, the Company is confident that any issues that arise in the work place will be handled fairly and professionally without the intervention of outside parties.

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Management is not obligated to, and will not, discuss with an outside party any matter or issue between the Company and an employee.

2.10. DISCIPLINARY GUIDELINES

An employee's failure to follow Company Policies will result in disciplinary action. Any action taken will be at the sole discretion of the Company. Disciplinary action options may include informal or verbal counseling, written counseling, probation and termination of employment.

2.11. CONFLICTS OF INTEREST

A conflict of interest exists when an employee engages in any activity that may compromise him/her, another employee, or the Company’s relationship with a customer, vendor, or competitor. Potential conflicts of interest with a customer, vendor, or competitor may include soliciting business for personal gain, accepting gifts other than those of nominal value, requesting favors, discounts or services.

Employees are required to disclose any potential conflict of interest. Failure to disclose a potential conflict of interest or engaging in a practice determined to be a conflict of interest may result in disciplinary action up to and including termination.

2.12. CONFIDENTIALITY OF COMPANY INFORMATION

Safeguarding the Company's confidential information, including business practices, customer information, systems, software, procedures and technology is essential. Caution and discretion are required in the use of such information. Confidential information should be shared only with those having a legitimate business need to know.

Confidential information obtained as a result of employment with the Company is not to be used for personal gain. Unauthorized use or disclosure of any confidential information is a violation of Company policy, and may result in civil and/or criminal penalties. Legal action may occur after an employee has been terminated.

Any authorized use and disclosure of trade secrets by any employee, representative, affiliate, agent, contractor, franchisee, assignee or third party (whether or not permitted) is strictly prohibited. Knowledge of a breach of trade secrets must be reported to your manager immediately.

The Company will not permit its employees to solicit, directly or indirectly, any subscriber on behalf of another wireless service provider during their employment with the Company or for a period of 90 days after employment has ended. Violation of this policy will result in disciplinary action, up to and including termination.

2.13. ANTI-FRAUD AND THEFT

The Company does not tolerate any type of fraud, theft, deceptive practices or abuse. The company’s policy is to promote consistent, legal and ethical organizational behavior by assigning responsibility for reporting fraud, theft or abuse.

2.14. SAFETY

Great care has been taken to provide a safe workplace, including monitoring and complying with both federal and state laws and regulations.

Specific safety and health rules will be posted. All employees are required to be familiar with the Company’s safety rules and/or policies. In addition, employees must follow the safety guidelines set forth by the Occupational Safety and Health Administration (OSHA). Each employee is responsible for remaining aware of and following safe working practices/procedures. Failure to follow safety and health rules may result in disciplinary action up to and including termination.

A brief review of these guidelines:

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Report any unsafe conditions or practices immediately to your manager; Report all personal injuries to your manager immediately; Alert your manager if you become sick while at work; Report or clean up all spills immediately; Employees are required to keep their work area clean and free from hazard; Use mechanical devices or request assistance in lifting heavy loads; Be sure that aisles or exits are kept clear; do not let cords interfere with walkways; Keep paperclips, tacks, pins and other objects off the floor; Store all sharp objects properly when not in use; Use stepstools or ladders for climbing; Avoid overloading electrical outlets; Avoid “horseplay” or practical jokes.

2.15. VIOLENCE AND WEAPONS POLICY

Any and all acts or threats of violence by or against any company employee, customer, vendor, or other visitor to the Company’s facilities are strictly prohibited. This policy applies to all company employees whether on or off company property.

Possession or use of any and all weapons, including but not limited to, handguns and martial arts weapons, regardless of license or concealment permit, is prohibited on company property. The exceptions to this policy: contracted, licensed security officers and law enforcement officers.

Company employees are prohibited from possessing or using a weapon of any type while conducting off-site business on behalf of the Company. An employee could be subject to search if company has a reason to believe that an employee is in possession of weapons.

2.16. WORKPLACE MONITORING AND SEARCHES

Company property, including but not limited to: desks, lockers, computers, files, e-mail and other property owned by the Company is subject to monitoring, interception and review. Reasons for monitoring, interception and review include, but are not limited to: theft investigation, improper disclosure of confidential or proprietary information, personal abuse or monitoring workflow and productivity.

Computers, e-mail and other communications systems are to be used for business purposes only.

Any attempt to gain access to restricted files by use of unauthorized codes or passwords is prohibited and will subject the employee to disciplinary action up to and including termination.

All communications conducted with company resources, including e-mail, are subject to monitoring and review at any time.

The Company retains the right to conduct searches of company property at any time. A search of company property is not an allegation or accusation of criminal conduct.

The Company also retains the right to search any locked or secured areas on the premises. This includes the use of computer pass codes, which must be available to the Company at all times.

When the Company determines the safety of individuals or company property may be at risk, they may, at its sole discretion, conduct unannounced searches of company property as well as an employee’s personal property on company premises. Employees are expected to cooperate when searches are conducted. Searches may occur at any time and without notice.

The Company may use surveillance cameras in public areas of the building to enhance the safety of their employees and property.

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2.17 SUBSTANCE ABUSE

Each employee is required to perform his/her duties unimpaired by any legal or illegal substance. Substance abuse includes the possession, use, purchase, manufacture or sale of drugs and/or alcohol on company property. Substance abuse also includes reporting to work or operating a company owned, leased or rented vehicle under the influence of drugs or alcohol. Violation of this policy will result in disciplinary action up to and including termination.

Any employee reporting to work impaired will not be allowed to work and may be subject to drug and/or alcohol testing. Legally prescribed medications/drugs may be taken during working hours. Employees should notify their supervisors if the use of prescribed medications/drugs might affect their performance. Abuse of prescription medications/drugs will not be tolerated.

The Company may conduct pre-employment screening examinations designed to prevent the hiring of individuals who use illegal drugs. In certain jobs or positions, an employee’s use of alcohol and/or drugs can pose a significantly higher risk to the safety of the employee, co-workers or company property. Accordingly, as a condition of employment; applicants for these designated positions may be required to take a pre-employment physical, including a test for the presence of illegal drugs or alcohol. Refusal to submit to the test within the time specified may result in termination of the application process.

The Company may also conduct random drug and alcohol testing, or testing if and when there is reasonable cause to suspect an employee is under the influence of drugs and/or alcohol while on company property. An employee's refusal to submit to the test at the time requested may result in disciplinary action up to and including termination.

Any employee involved in a work related accident may, at the Company’s discretion, be required to consent and submit to a drug and/or alcohol test(s) immediately thereafter, but in no case later than thirty-two (32) hours after the accident. If, due to injuries, the employee cannot submit to testing within the prescribed time, the employee will provide the Company with necessary authorization required to obtain hospital reports and other documents that would indicate the presence or non-presence of any drugs and/or alcohol in the employee’s system at the time of the accident.

The Company may report information with regards to possession, distribution or use of illegal drugs to law enforcement officials. Also, any suspect substances found during a search of company property or an employee’s personal property on company premises may be turned over to law enforcement officials. Employees convicted of drug or alcohol involvement may be considered to be in violation of the company Sub-stance Abuse Policy.

Company, customer or supplier sponsored activities which may include the service of alcoholic beverages are not included in this policy. However, all employees are viewed as representatives of the Company, whether at work or participating in these events. The Company expects that such consumption will be in moderation so as not to reflect negatively on the Company’s professional reputation or exposure to undue legal liability. An employee should not operate a motor vehicle or otherwise engage in any hazardous activity if the alcohol consumed would impair their ability to safely perform those functions.

2.18. COMPANY PROPERTY

All desks, file cabinets, computers, furniture, etc. are the property of the Company and must be accessible to management at all times. The use of personal locks on company offices, furniture, file cabinets or other property is not permitted. The Company assumes no liability for personal property brought onto the premises.

2.19. OFFICE EQUIPMENT

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Fax machines, copiers, computers, and other office equipment are for company business use only and should not be removed from the premises without the expressed consent of the Company. The Company provides some, if not all, employees with electronic access, consisting of an email system, a network connection, and Internet access. All information created, sent, or received via the company’s email system, network, or Internet, including all email messages and electronic files, is the property of the company. Employees should have no expectation of privacy regarding this information. The company reserves the right to access, read, review, monitor, and copy all messages and files on its computer system at any time and without notice. When deemed necessary, the company reserves the right to disclose text or images to law enforcement agencies or other third parties without the employee’s consent. All employees are required to use company email for all business communications at all times.

Any attempt to disable or “go around” any computer monitoring software is grounds for discipline, up to and including termination.

2.20 Internet, email and computer usage policy:

The use of company automation systems, including computers, fax machines, and all forms of internet access, is for company business and your authorized purpose only. Brief and occasional personal use of electronic mail system or the internet is acceptable as long as it is not excessive or inappropriate, occurs during personal time (lunch or other breaks) and does not result in expense or harm to the company or otherwise violate this policy.Use is defined as “excessive” if it interferes with normal job functions, responsiveness, or the ability to perform daily job activities, electronic communication should not be used to solicit or sell products or services that are unrelated to the company’s business, distract, intimidate or harass co-workers or disrupt the work place.Use of company computers, network and internet access is a privilege granted by management and may be revoked at any time for inappropriate conduct carried out on such systems, including, but not limited to:

• Engaging in personal or private business activities.• Use of instant messaging and chat rooms are strictly prohibited.• Accessing networks, servers, drivers, folders, or files to which the employee has not been granted access.•Using abusive, profane, threatening, racist, sexist, or otherwise objectionable language in either public or private messages.• Sending, receiving or accessing pornographic material.

If you violate these policies, you could be subject to disciplinary action, up to and including dismissal.

2.21. COMPANY MEETINGS

Employees may be required to attend periodic employee meetings. These meetings are held to discuss team performance, policies, procedures, new products, events, promotions, safety, etc. If your attendance is mandatory, your manager will inform you in advance of the meeting. Failure to attend may result in disciplinary action, up to and including termination. The Company expects employees to demonstrate proper professionalism while attending meetings.

2.22. PERSONAL TELEPHONE CALLS

We must maintain communications with our customers and business associates. Since the telephone is our primary method of communication, it is necessary to limit its use to company business only. Accordingly, the telephones should not be used for personal telephone calls, nor should personal cell phones be used except in cases of emergency.

Except in the case of an emergency, employees are asked to discourage friends and relatives from calling them at work. Personal phone calls should be made during lunch or break periods.

Employees must receive prior approval before making a personal long distance call on company telephones. Personal long-distance calls should be collect or charged to the employee’s personal credit card.

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2.23. PERSONAL MAIL

Company stationary should not be used for personal correspondence. Any communication sent out on company stationery must be official business. Company postage (stamps) should not be used for private use.

2.24. SEVERE WEATHER

The Company will be open for business on all regularly scheduled days, regardless of weather conditions. Every attempt should be made to report to work if weather conditions permit. Employees should notify their manager as soon as possible if they will be absent from or late to work.

2.25. SUGGESTIONS

Employees are encouraged to submit improvement suggestions to their manager or the Human Resources Department. [email protected]

III. EMPLOYMENT3.1. ORIENTATION

New employees will be required to provide documentation of identity and employment eligibility in accordance with federal law.

New employees will receive a copy of the employee handbook on their first day of employment. They are to be given the opportunity to read the entire handbook and once completed, sign the acknowledgment of understanding form. The signed acknowledgment of understanding form will be placed in their personnel folder.

3.2. EQUAL EMPLOYMENT OPPORTUNITY

The Company is an equal opportunity employer and is committed to equal opportunity without regard to race, religion, color, sex, age, sexual orientation, national origin, citizenship, disability or any other basis of discrimination prohibited by applicable local, state or federal law.

In addition to compliance with federal EEO statutes, the Company complies with applicable state and local laws governing nondiscrimination. This policy applies to all terms and conditions of employment, including but not limited to the following:

Recruitment, hiring, placement, transfer, promotion, and demotion; Training, development, and educational assistance; Compensation and benefits; Educational, social, and recreational programs; Discipline; Termination of employment.

Employment decisions, subject to the legitimate business requirements of the Company, are based solely on the individual’s qualifications, merit, behavior and performance.

3.3. HARASSMENT

Harassment is conduct focused on a person or group of persons including, but not limited to: physical or verbal abuse, unwelcome activity of a sexual nature and retaliation; as well as any behavior or action which interferes with an individual’s ability to perform assignments or which creates a hostile or intimidating work environment.

The following, though not all-inclusive, is a list of various types of harassment.

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1. Verbal Abuse - any language that degrades or berates others, including, but not limited to, racial, religious, or sexual comments, jokes, sexual innuendoes, or threats of any kind.

2. Physical Abuse - includes touching, hitting, slamming, throwing, kicking or threatening another person, including restraining by force or blocking the path of another.

3. Interference or Hostile Environment - any behavior or action which interferes with an employee’s ability to perform work assignments or which results in or creates a hostile or intimidating work environment.

4. Sexual Harassment - includes, but is not limited to, sexual advances, requests for sexual acts or favors and other physical conduct of a sexual nature when:

(a) Submission to such conduct is made either explicitly or implied as a term or condition of an individual’s employment;

(b) Submission to or rejection of such conduct by an individual is used as the basis for employment decisions affecting the individual; or

(c) Such conduct is severe and pervasive, and has the purpose or effect of unreasonably interfering with an individual’s work performance or creating an intimidating, hostile, or offensive work environment.

5. Retaliation – (by the company or an individual employee) any adverse action or threat of adverse action taken or made because an individual has exercised or attempted to exercise any rights under state or federal employment laws or under the policies of the Company. Retaliation includes, but is not limited to:

(a) Verbal abuse; (b) Threats of withholding or withdrawal of pay, promotions, training or other employment

opportunities.

In addition to the above forms of harassment, any behavior or action which interferes with an individual’s ability to perform job duties or which results in or creates a hostile or intimidating work environment is considered harassment.

The Company will not tolerate the discrimination or harassment of employees and/or applicants.

Comments, conduct, off color jokes and innuendoes that may be perceived as offensive or harassing are strictly prohibited and will not be tolerated.

In addition, the Company will not tolerate the harassment of company personnel by non-company personnel on company premises. Non-company personnel include, but are not limited to, customers, vendors, guests and regulators.

Any employee who feels he/she is the victim of discrimination or harassment has a responsibility to report this to the Human Resource Department or other managerial personnel. Reporting of the incident should be made verbally or in writing to the Human Resource Department or the employee’s direct supervisor immediately. A written complaint should include the specific nature of the incident, date and place of incident, names of all parties involved as well as a detailed report of all pertinent facts. Complaints of harassment will be promptly and carefully investigated. Investigations will include interviews with all relevant persons, including the accused and other potential witnesses.

Any employee, who, in good faith, files a complaint of harassment, will be free from any and all reprisal or retaliation as a result of filing the complaint. Investigators will make every effort to strike a balance between the parties’ desires for privacy and the need to conduct a fair and effective investigation.

Harassment shall subject an employee to disciplinary action up to and including termination. Likewise, there will be disciplinary measures if in fact it is determined that the incident and thus the accusation were fabricated.

3.4. CRIMINAL CONVICTIONS

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The Company reserves the right not to employ or retain in employment anyone convicted of a criminal offense involving dishonesty or breach of trust.

Conviction of a crime will not automatically result in a rejection of employment. All relevant circumstances, such as length of time and the crime involved will be considered in relation to specific job requirements.

3.5. PERSONNEL FILE

The information contained in personnel files is considered confidential information. No information will be placed in an employee’s personnel file unless there is a clear business reason to do so.

Due to the confidential nature of personnel files, the Manager/Human Resource Department is responsible for controlling all access to them. Personnel files are not to be copied or removed from the premises.

An employee may review his/her personnel file in the presence of the Manager/Human Resource Department during normal business hours, provided adequate prior notice is made for the request. Under no circum stances may an employee alter or remove any document in the file, unless allowed by law.

It is the sole responsibility of each employee to inform the Company of any changes in personal status that may alter his/her payroll or benefits status. Such information includes, but is not limited to:

Last Name Marital Status W-4 Deductions Address Telephone Number Emergency Contact

3.6. EMPLOYMENT REFERENCES

Information concerning former or current employees is considered confidential. All mail and telephone inquiries are to be directed to the Manager or Human Resource Department. Employees are strictly prohibited from providing any information regarding former or current employees.

Information released will include dates of employment and position(s) held only. Unless required by court order or subpoena, the employee must provide a signed release to the Manager/Human Resource Department before additional information will be disclosed.

3.7. OUTSIDE EMPLOYMENT

Outside employment, which interferes with an employee’s productivity or which, may result in a conflict of interest should be avoided. An employee must notify their manager if outside employment is obtained.

Employees should carefully consider the demands of any additional work activity. Outside employment will not be considered an excuse for poor job performance, absenteeism, tardiness, leaving early, refusal to travel, refusal to work overtime or refusal to work different shifts.

Accepting employment with any employer that competes with any activity of the Company is prohibited.

Employees are not to conduct any outside business during paid working time, or using any company equipment.

3.8. REHIRING FORMER EMPLOYEES

Applications received from former employees will be processed according to the same procedures and given the same consideration afforded all other applicants. Prior performance records and circumstances surrounding prior termination will be considered.

Any employee that leaves/left the Company without providing sufficient notice (2 weeks) or is/was discharged by the Company for reasons of performance or misconduct will not be considered for rehire.

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3.9. POLYGRAPH EXAM

Under federal law, employees have certain rights related to polygraph exams. For your reference, the federal law is entitled the Employee Polygraph Protection Act, 29 USC § 2001 et seq., and the full text of the law is available on the internet. All employees are strongly encouraged to review the law and make themselves aware of their rights related to polygraph exams.

Under certain circumstances, the Company may request any employee to take a polygraph exam. Refusal to cooperate with such a request is grounds for termination of the employee.

If an employee is requested to take a polygraph exam, the Company will provide the employee with, among other notices required by law, a statement that sets forth the specific incident or activity being investigated and the basis for examining a particular employee.

During any polygraph exam, the employee will have the right to terminate the exam at any time. Termination of the exam by the employee may be considered grounds for termination of the employee.

If, after the completion of a polygraph exam, the Company determines that adverse employment actions are necessary, the Company will interview the employee based on the results of the exam. The Company will further provide the employee with a written copy of any opinion or conclusion rendered as a result of the exam and a copy of the questions asked during the exam along with the corresponding charted responses.

IV. COMPENSATION4.1. EMPLOYMENT CLASSIFICATION

The Company categorizes all employees with respect to position and federal / state regulations. Summary definitions are:

Exempt Employee (salaried employee) - any salaried executive, administrative, professional, or contracted position. These employees are exempt from both the minimum wage and overtime provisions of FLSA. The employee’s wages are computed on an annual basis.

Nonexempt Employee (hourly employee) - any salaried or hourly employee who is not exempt from the minimum wage or overtime provisions of FLSA. The employee’s wages are computed on an hourly basis.

Employees are also classified as one of the following three:

Full-time - any employee who is regularly scheduled to work 35 or more hours per week. Full-time employees are eligible for all standard company benefits.

Part-time - any employee who is scheduled to work less than 35 hours per week. Part-time employees are not eligible for standard company benefits.

Temporary/Seasonal - any employee scheduled to fill a temporary job assignment that has a predetermined beginning and ending date. Temporary employees are not eligible for standard company benefits.

4.2. HOURS OF WORK

The company operates retail locations in different types of venues (malls, strip centers, kiosks, etc.) subjecting each location to different hours of operations .Employee’s availability must be flexible to help meet the needs of the location.

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4.3. LUNCH BREAKS

Employees working more than six (6) consecutive hours are provided an unpaid lunch break of a minimum of 30 minutes. Breaks for meals or snacks are not to be taken in areas with public visibility.

4.4. RECORDING TIME

All retail location employees are required to record their hours worked each day. The manager must approve any changes to an employee’s time card.

Forgetting to clock in and out must be reported to the manager immediately Under no circumstances should you clock in and out for another employee. This will result in disciplinary

action, up to and including termination of all employees involved.

4.5. OVERTIME

Employees are expected to work overtime when the need arises. Nonexempt employees will be paid time and one-half (1½) for work time that exceeds 40 hours during a scheduled workweek. Exempt employees are not eligible for overtime. All overtime must be approved by the District Manager.

Holidays, sick leave, and vacations are not considered time worked for the calculation of overtime pay. However, nonexempt employees will be paid one and one-half times (1½) their hourly wage for all hours worked on a holiday, in addition to standard holiday pay.

4.6. SALARY AND WAGE INCREASES

Salary and wage increases are granted on the basis of performance and/or promotion on a semi-annual basis. All salary or wage increases will be reviewed and approved by the GM of your territory.

4.7. PAYROLL

Per federal and state laws, withholding and social security tax will be withheld from each employee’s pay or wages.

Payroll checks will not be released to anyone other than the employee without prior written authorization. This includes the employee’s family members.

Pay and compensation should only be discussed with members of management or the Human Resource Department.

The company has a published pay schedule. Employees should make any necessary adjustments to accommodate for this schedule. Pay day advances will not be allowed.

4.8. PERFORMANCE REVIEWS

Supervisors and/or managers will be responsible for employee performance reviews (appraisals). Performance reviews evaluate an employee’s job performance, job-related strengths and job related weaknesses. The review is used to develop a plan for improvement, if needed. Performance reviews may also be used to determine changes in job status and/or salary level.

Annual performance reviews (appraisal) should be conducted with each employee. During this review, the employee and the supervisor will outline the employee’s performance strengths and areas requiring improvement. Each review will establish:

Results desired by management; Action management will take to help the employee obtain these results; Actions the employee will take to improve deficient areas;

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A completion date for correcting those deficiencies.

The performance appraisal will be reviewed and approved by the manager. Appropriate salary increases (if any) will be granted once reviewed by the District Manager and approved by the General Manager. The signed performance review will be retained in the employee’s personnel file.

V. BENEFITS5.1. THE BENEFITS PROGRAM

Complete information regarding benefit plans may be obtained from the Human Resource Department. The Company reserves the right to amend or terminate any of these voluntary programs at any time.

In the event of discrepancies between the information contained in this handbook and the official plan document and/or master insurance contracts, the latter will govern in all cases.

5.2. BENEFIT ELIGIBILITY Exempt and Full time corporate employees are eligible for standard company benefits.

5.3. HOLIDAYS

The Company observes the following holidays each year:

Independence Day, Thanksgiving Day, Christmas Day, New Year Day,

Employees, including Sectional Managers and General Managers, are expected to work on holidays when stores are open for business.

5.4. PAID TIME OFF

The Company believes that employees should have opportunities to enjoy time away from work to help balance their lives. We recognize that employees have diverse needs for time off from work and have established a paid time off (PTO) policy to assist you in meeting those needs. This policy takes the place of sick, personal absences, personal time and vacation accrual.

PTO For Exempt and Corporate Employees

Starting June 1st 2013 all exempt new employees will be eligible for PTO after the first year of their employment with the company.

Employees with 1 years of employment will accrue 7 days per annum. Employees with 2 plus years of employment will accrue 14 days per annum.

PTO Guidelines:

PTO calendar starts Jan 1st ends on Dec 31st every year. PTO will be approved at company’s discretion. Management can cancel approved leave at any time based on the business need. Employees will not be eligible for a cash option at any time. In case of termination/resignation the leave balance cannot be used towards notice period.

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Non-Exempt employees are ineligible for PTO.Part-time/Temporary employees are not entitled to participate in the Company’s benefits programs.

5.5 BEREAVEMENT LEAVE

In the unfortunate event of a death in the immediate family, an employee may be given up to two (2) days of leave. Immediate family members include your spouse, child, parents, brothers, sisters, grandparents, grandchildren, and corresponding in-law relationships.

5.6. SOCIAL SECURITY

The Social Security Administration and the Company require your current name and correct social security number. If you have a name change or notice an incorrect social security number, please notify both parties.

5.7. PRE-TAX DEDUCTIONS

The Company may establish a salary reduction program so that a dependent’s health insurance contributions are made on a pre-tax basis. This means that an employee’s contribution to insurance premiums will not be included as taxable income for withholding purposes (Social Security, FICA, etc.). Once instituted, certain optional medical and disability insurance premiums may also be eligible. Consult your Human Resource Department for updates.

5.8 MILITARY LEAVE

Members of the U.S. Military Service will be granted time off (unpaid) for the performance of their service duties, including initial training, active duty, inactive duty training and full-time National Guard duty.

Reserve Military Duty – employees with military reserve obligations, ask your Human Resource Department about Company paid benefits, if any, provided during your participation.

Under new FMLA regulations, immediate family members will be allowed to take up to 12 unpaid weeks to assist family members have been notified of an impending call or order to active duty. Also, the regulations allow up to 26 unpaid weeks of leave to care for a covered service member with a “serious injury or illness.” Contact the Human Resources Department for specific details

Failure to report back to work immediately after reserve duty or your military discharge will be regarded as a voluntary resignation.

5.9 FAMILY MEDICAL LEAVE ACT (FMLA)

Up to 12 weeks of leave, Family Medical Leave of Absence, may be granted in any 12-month period. Family Medical Leave of Absence may be taken for one or more of the following:

Birth of a child; Placement of a child with the employee for adoption or foster care; To care for a spouse, child or parent with a serious health condition. To take medical leave when an employee is unable to work due to a serious health condition.

Maternity leave is included in this policy. Extended maternity leaves that are not medically required will be considered personal leaves of absence.

Employees are eligible for FMLA if they have worked over 1,250 hours in a 12 month period and work within 75 miles of at least 50 employees. Employees requiring Family or Medical Leave of Absence should consult their Human Resource Department for further details.

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Employees on Family Leave of Absence are required to contact the Company within three working days of Leave expiration.

Seniority for benefit eligibility purposes will not accrue during FMLA.

The Company cannot guarantee placement within the same position at the conclusion of a Family or Medical leave of absence. While every effort will be made to reinstate an employee into their original position, the employee may be placed in an equivalent position upon their return.

Employees who elect not to accept an alternative position after return from a leave of absence will be terminated. However, they will be eligible for rehire if their original position becomes available at a later date.

Engaging in gainful employment during a leave of absence will be considered a voluntary resignation.

5.10 WORKERS’ COMPENSATION

All job-related injuries and accidents, regardless of the severity or lack thereof, must be immediately reported to your manager. Your manager will complete the appropriate report and submit it to the District Manager. The District Manager will complete the forms on the same day they are received.

Employees are expected to return to work immediately upon release by their doctor. If any employee returns to work with a medical restriction, those restrictions are to be strictly followed. Failure to do so will result in disciplinary action, up to and including termination.

5.11. JURY DUTY

The Company will grant an employee time off for mandatory jury duty. Employees will also be granted time off when required to appear as a result of a court order or subpoena. The employee must provide a copy of the court order, subpoena, or jury summons to their manager.

5.12. UNEMPLOYMENT COMPENSATION

Employees are eligible for unemployment compensation as specified by the state unemployment compensation laws. The Company pays the entire cost of unemployment compensation coverage.

5.13. TRAVEL EXPENSES

All pre-approved company travel expenses are reimbursable. The Company will only reimburse reasonable expenses incurred while traveling on company business

5.14. REIMBURSABLE EXPENSES

Expense reports will be used to reimburse employees for their out-of-pocket expenses on the Company’s behalf. Expense reports must include all receipts from lodging, airfare, meals and other transactions. General Manager approval is required prior to a reimbursable expense being incurred. Failure to obtain approval could lead to the expense being denied for payment.

5.16. EMPLOYEE PURCHASES

Sales must be approved by the General Manager and rung up by the store manager. No internal sales among the staff will be permitted as well as no bonus will be paid for employee purchases. The General Manager reserves the right to adjust employee purchase price without notice. All items must be paid for in full at the time of purchase unless you have written approval from the General Manager.

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VI. SEPARATION6.1. GENERAL – PROBATIONARY PERIOD

We will institute a 90 day probationary period for new employees. During this 90 day period the Company may terminate employment at any time without cause. Employment with the Company is on an at-will basis. Employees are free to terminate their employment at any time, with or without cause. In addition, the Company may terminate the employment relationship at any time, with or without cause.

6.2. JOB ABANDONMENT

Two (2) consecutive days of absence without properly notifying your supervisor will be considered a voluntarily resignation (abandonment). The effective date of termination will be the last day the employee reported to work. In the event an employee abandons their job, they will not be entitled to any PTO pay.

6.3. VOLUNTARY RESIGNATION

Employees are required to provide a minimum of two (2) weeks written notice prior to the effective date of their resignation. The Company may permit an employee to continue employment during the two-week notice period or accept their resignation immediately. In the event the Company chooses to accept the resignation immediately, the employee will not be paid for the remaining portion of the two-week notice period.

6.4. PERFORMANCE-BASED RELEASE

A performance-based release is a separation initiated by the Company for unacceptable job performance. This is considered an involuntary separation; no PTO time will be paid out.

6.5. ACTS OF MISCONDUCT

A termination for misconduct is a termination initiated by the Company for unacceptable conduct or behavior. This is considered an involuntary separation; no PTO time will be paid out.

6.6. OTHER FORMS OF SEPARATION

An individual’s employment with the Company may also be terminated for, but not limited to, any of the following reasons:

Reduction in the Company’s workforce; Elimination of the employee’s position; End of Seasonal employment; Retirement; When deemed appropriate for reasons other than job abandonment.

6.7. TERMINATION PROCEDURES

On or before the last day of work, or at the Company’s request, employee's are required to return all equipment, keys, memoranda, notes, records, computer files, and/or other documents, including all copies of such items, which in any way relate to the business or affairs of the Company or any of its employees, customers, consultants, or agents. This includes other Company property such as corporate credit cards, etc.

Any employee leaving the Company, regardless of separation reason or method, may request an exit interview with the Human Resource Department. During this exit interview the employee will be given the opportunity to ask questions and/or make comments regarding their job.

Sales Bonus:

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Employees’ separation will result in forfeiture of any all bonus opportunities.

Employees will receive their final pay as dictated by the appropriate state law.

6.8. ACKNOWLEDGMENT OF RECEIPT AND UNDERSTANDING OF EMPLOYEE HANDBOOK 

The Employee Handbook contains important information about the Company, and I understand that I should consult the District Manager/General Manager regarding any questions not answered in the handbook. I also understand that these polices may have to be adjusted slightly to coincide with the employment laws of my state. I have entered into my employment relationship with the Company voluntarily, and understand that there is no specified length of employment. Accordingly, either the company or I can terminate the relationship at will, at any time, with or without cause, and with or without advance notice.

 I authorize the Company to deduct the designated amount from my paycheck for any violations to the stated policies.

Since the information, policies, and benefits described herein are subject to change at any time, I acknowledge that revisions to the handbook may occur, with the exception of the company's policy of employment-at-will. All such changes will generally be communicated through official notices, and I understand that revised information may supersede, modify, or eliminate existing policies. Only the General Manager, in conjunction with the CEO can make any revisions to the policies in this handbook. Furthermore, I understand that this handbook is neither a contract of employment nor a legally-binding agreement. I have had an opportunity to read the handbook, and I understand that I may ask my supervisor or General Manager any questions I might have concerning the handbook. I accept the terms of the handbook. I also understand that it is my responsibility to comply with the policies contained in this handbook, and any revisions made to it. I further agree that if I remain with the Company following any modifications to the handbook, I thereby accept and agree to such changes. I understand that I will be disciplined, up to and including termination for any policy violations. 

I have received a copy of the Company’s Employee Handbook on the date listed below. I have read and understand the entire handbook. Additionally, I will sign the Acknowledgment of Receipt and Understanding, and return the form to be placed in my personnel file.    __________________Signature of Employee                               Date  __________________________________Employee's Name – Printed ___________________________

Supervisor Signature

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