The Billion Group Employee Handbook

The Billion GroupEmployee HandbookEFFECTIVE FEBRUARY 1, 2017THE BILLION GROUP HUMAN RESOURCES3401 WEST 41ST STREET, SIOUX FALLS, SD 57106

IntroductionWelcomeIntroductory Statement4-56EmploymentEqual Employment OpportunitySexual and Other Unlawful HarassmentDisability AccommodationsAnti-RetaliationGenetic InformationEmployment ApplicationImmigration Law CompliancePersonnel Data ChangesIntroductory PeriodOutside Employment and GiftsMotor Vehicle Records and Background Checks88-1010-1111121212131313-1515Compensation and Hours of WorkEmployee ClassificationsRecording Time WorkedOvertimeDeductions from Exempt Employees’ CompensationBusiness Travel ExpensesAnnual Continuous Employment Bonus for Automotive Sales AssociatesAdverse Weather1718-191919-2020-212121-22Time off BenefitsAccrued Paid Time Off (PTO) for Non-Exempt Employeesand Certain Exempt EmployeesDiscretionary Time off for Exempt EmployeesHolidaysBereavement LeaveJury DutyGeneral Leaves of AbsenceMilitary LeaveFamily and Medical Leave ActSpecial Leaves124-2626-2727-2828-292929-3030-3131-3535

BenefitsBenefitsHealth InsuranceWorkers’ Compensation InsuranceBenefits Continuation: COBRAEmployee Discounts373737-383839Employee ConductEmployee Conduct and Work RulesPersonal Automobile and Other Personal PropertyLicensingSolicitation and DistributionBusiness Ethics and ConductConflicts of InterestConfidential InformationDrug and Alcohol UseCustomer RelationsWeaponsWorkplace MonitoringAttendance and PunctualityPersonal y and SecuritySafetyHazardous MaterialsSecurity InspectionsWorkplace ViolenceFirst Aid5050515152Employee Acknowledgement Form (All locations except Montana)Employee Acknowledgement Form (Montana Location Only)253-5455-56

3

Welcome to the Billion Group!The Billion Group is a group of affiliated companies operating motor vehicle sales andservices businesses and related businesses in Iowa, South Dakota and Montana. TheBillion Group includes the following companies:Billion Air Management, LLCBillion Holdings, Inc.Billion Auto, Inc. d/b/a Billion Kia of Sioux CityBillion C, Inc. d/b/a Billion ChevroletBillion CC, Inc. d/b/a Billion HyundaiBillion Clear Lake, Inc. d/b/a Billion FordBillion Clinton, Inc. d/b/a Billion Chevrolet Buick GMC ToyotaBillion Community, Inc. d/b/a Billion Chevrolet Buick GMC CadillacBillion Dells Auto, Inc. d/b/a Billion Chevrolet of Dell RapidsBillion Des Moines Motors, Inc. d/b/a Billion Buick GMCBillion FT, Inc. d/b/a Billion Fiat and Billion Chrysler Jeep Dodge RAMBillion FT Des Moines, Inc. d/b/a Billion Alfa Romeo and Fiat of Des MoinesBillion G, Inc. d/b/a Billion Buick GMCBillion H, Inc. d/b/a Billion HondaBillion Hawkeye, Inc.Billion K, Inc. d/b/a Billion Kia of Iowa CityBillion Montana Motors, Inc. d/b/a Billion Kia of MissoulaBillion Motors, Inc. d/b/a Billion Kia and Billion Used Car SuperstoreBillion NSC, Inc. d/b/a Billion NissanBillion SC, Inc. d/b/a Billion Buick GMC Cadillac of Sioux CityBillion Southtown, Inc. d/b/a Billion SouthtownBillion T, Inc. d/b/a Billion ToyotaBillion West, Inc. d/b/a Billion Kia Rapid CityBillions Empire Motors, Inc. d/b/a Billion Hyundai, Billion Mazda and Billion NissanNichols Media, Inc.Sterling e-Marketing, Inc.Tower Campground, LLCVGP, Inc.Water Solutions, Inc.West Twelfth Properties, LLC4

If you are a new employee, we would like to extend you a warm welcome to the BillionGroup! We are pleased that you are joining us and we know that your contributions willassist us in remaining a leader in the communities where we operate and in our industry.If you are already an employee, we have extended our welcome before and we appreciatethe hard work you do.We are proud to have you as part of our team. To ensure continued success, we feel itis important that all employees understand our policies and procedures. As one of ouremployees, you will want to know what you can expect from us and what we expect fromyou. This Employee Handbook will give you that information by outlining our currentbenefits, practices and policies.5

This Employee Handbook will give you important information about working at the BillionGroup. The policies in this Employee Handbook explain many of the benefits of workinghere. This Employee Handbook also explains what we expect of you and describes manyof our rules. However, not all of our policies, procedures and rules are set forth in thisEmployee Handbook. We have summarized only some of the more important ones. Ifyou have any questions or concerns about this Employee Handbook or any other policyor procedure, please contact the Human Resources Department.The Billion Group sometimes may make changes to this Employee Handbook. The BillionGroup has the right to add new policies, change policies or cancel policies at any time.This Employee Handbook and its contents replace and supersede all prior versions of ourhandbook. Please note, however, that policies or procedures addressed elsewhere andnot in this Employee Handbook are not replaced or superseded.This Employee Handbook is not a contract of employment. No statement orprovision in this Employee Handbook or in any other policy or statement of theBillion Group’s beliefs (such as statements during performance evaluations orwage reviews) are or should be taken as being an express or implied promise ofcontinuing employment. Employees are employed at-will. “At-will” means that youare free to resign at any time, with or without cause. Likewise, “at-will” means thatthe Billion Group may terminate your employment at any time, with or withoutcause or advance notice as long as we do not violate any applicable law. Also,please understand that no one has the authority to enter into an oral employmentcontract on the Billion Group’s behalf. Only the President or a Vice President of aBillion Group company has authority to enter into a written employment contract.The Billion Group operates in different states. This Employee Handbook is intended tocomply with federal law. If a provision of this Employee Handbook conflicts withapplicable state law, state law will be followed if it benefits the employee. Please see thestate addendum for further information regarding rules and benefits specific to the statein which you work.This Employee Handbook is posted to our website at www.billionbenefits.com and isavailable at any time for you to access and review. By using an electronic format, we cankeep this Employee Handbook current as changes are made. It is your responsibility tocheck for updates.6

EMPLOYMENT7

To give equal employment and advancement opportunities to all people, we makeemployment decisions at the Billion Group based on each person’s performance,qualifications and abilities. The Billion Group does not discriminate in employmentopportunities or practices on the basis of race, color, religion, sex, national origin, age,disability, genetic information, pregnancy or any other characteristic protected byapplicable local, state or federal law.Our Equal Employment Opportunity policy covers all employment practices including, butnot limited to, selection, job assignment, compensation, discipline, termination andaccess to benefits and training.If you have a question about this policy or wish to make a report about possiblediscrimination at work, speak with the Director of Human Resources or CorporateCounsel or call or report online to our Ethics Hotline (tel. 866.91.ALERT orwww.eidebailly.com/hotline). You will not be punished or retaliated against for askingquestions about this policy or for reporting possible discrimination. Also, if we find outthat anyone was illegally discriminating, that person will be subject to disciplinary action,up to and including termination of employment.It is the policy of the Billion Group that all employees shall have the right to work in anenvironment free from any form of unlawful harassment or discrimination.Sexual harassment is considered discrimination and is prohibited by state and federallaws. It is the Billion Group’s policy that sexual harassment will not be allowed ortolerated. It is a violation of Billion Group policy for any employee, male or female, toengage in sexual harassment as defined below. Such conduct will result in disciplinaryaction up to and including termination of employment.The Equal Employment Opportunity Commission (EEOC) defines sexual harassment asfollows:Quid Pro QuoUnwelcome sexual advances, requests for sexual favors and other verbal or physicalconduct of a sexual nature constitute quid pro quo harassment when (1) submission tosuch conduct is made either explicitly or implicitly a term or condition of an individual’semployment or (2) submission or rejection of such conduct by an individual is used as thebasis for employment decisions affecting an individual.Hostile EnvironmentA hostile environment is one in which unwelcome sexual advances, requests for sexualfavors or other verbal or physical conduct of a sexual nature occur and when such conduct8

has the purpose or effect of unreasonably interfering with an individual’s workperformance or creating an intimidating, hostile or offensive work environment. This mayexist when co-workers (or non-employees, such as vendors, customers and clients)participate in such conduct.Some examples of sexual harassment include but are not limited to: Unwanted sexual advancesOffering employment benefits in exchange for sexual favorsMaking threatening reprisals after a negative response to sexual advancesVisual conduct such as leering, making sexual gestures, or displaying sexuallysuggestive objects, videos, pictures, cartoons or postersVerbal conduct such as playing recordings of or making derogatory comments,sounds, epithets, slurs, sexually explicit jokes or comments or sounds about anemployee’s body or dressVerbal sexual advances or propositionsVerbal abuse of a sexual nature, graphic verbal commentary about an individual’sbody, sexually degrading words to describe an individual or suggestive or obsceneletters, notes or invitationsPhysical conduct such as touching, assault or impeding or blocking movementRetaliation for reporting harassment or threatening to report harassmentIt is important to note that sexual harassment does not have to involve conduct of a sexualnature in order to constitute unlawful behavior. For example, abusive, offensive ordemeaning behavior that is directed to members of one gender only (whether male orfemale) may be deemed a form of sexual harassment, even though the conduct was notmotivated by sexual desire or gratification. In addition, harassment of a male by anothermale or female by another female may also constitute an unlawful form of sexdiscrimination.The Billion Group is committed to providing a work environment free of any unlawfulharassment not just harassment that is sexual in nature. The Billion Group policyprohibits sexual harassment and harassment because of race, color, nationalorigin, disability, veteran status, age, religion, pregnancy, gender identity, geneticinformation or any other basis protected by applicable federal, state or local law,which creates an intimidating, offensive, or hostile working environment orotherwise interferes with work performance. All such harassment is unlawful andwill not be tolerated.If you believe you have experienced such conduct by anyone, including a supervisor,co-worker or by persons doing business with or for the Billion Group, you should tell theoffender that such conduct is unwelcome and unacceptable. If the behavior does notstop, or if you are not comfortable dealing with the offender, you must immediately reportsuch conduct in writing to your supervisor (unless you are not comfortable reporting thematter to your supervisor) or to the Director of Human Resources or Corporate Counselor call or report online to our Ethics Hotline (tel. 866.91.ALERT or9