DISPUTE RESOLUTION PROGRAM

AND MUTUAL ARBITRATION AGREEMENT

This Dispute Resolution Program includes a Mutual Arbitration Agreement, which

requires final and binding arbitration, instead of courtroom litigation, of Covered
Disputes between associates and Stage. Please read this booklet carefully.

Work-related disputes are rare, but they can have many, harmful effects and take a long time to
resolve, at great expense to everyone involved. This Dispute Resolution Program and Mutual
Arbitration Agreement (“Program”) is intended to foster open communication and to provide a
framework for resolving differences in a fair, timely and efficient manner.

The Program applies both to associates (“you” or “associate”) and to Specialty Retailers, Inc., including
its officers and directors, its related entities, and any successors and assigns (together, the “Company”
or “Stage”). The Program covers all associates employed by the Company, in all locations (e.g., stores,
distribution centers, field and the corporate support center).

Four Stages to Resolve Disputes

As described below, the Program has four “stages” for resolving disputes.

The first and second stages involve open communication with your supervisor and then, if needed, a
formal review by Human Resources. These are internal dispute resolution processes that apply to any
and all disputes that may arise between you and other associates or the Company.

The third and fourth stages are Mediation with a neutral party and then final and binding Arbitration.
These are external processes, meaning that they involve people who are outside the Company.
Mediation and Arbitration apply only to “Covered Disputes,” which are also described below.

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 INTERNAL DISPUTE RESOLUTION PROCESSES

STAGE 1: OPEN COMMUNICATION

Our door is always open. This Program builds on trust and openness by creating a process that asks
you first to talk to the right person. Often, the questions or concerns you have can be answered or
resolved quickly if you talk directly to your immediate supervisor. If you are uncomfortable
discussing a problem with your supervisor, or if you are not satisfied with your supervisor's decision,
you may speak with the Company’s Human Resources Department, which can be reached at 1-800-
797-2817, or with your assigned Human Resources Business Partner. In most instances, an issue can
be resolved simply by opening the lines of communication.

STAGE 2: FORMAL REVIEW

Sometimes it helps to get another person to listen to both sides of an issue objectively and to offer
some fresh ideas. If you have already talked with your immediate supervisor, or if you want to
bypass Stage 1, you can ask the Human Resources Department to review your concern.

Here are the steps.

A. Complete a “Dispute Processing Form”

These forms are available in every store and distribution center, and from the Human Resources
Department. Mark the box “Request for Formal Review,” describe the facts of the matter, and
explain how you believe your concerns should be resolved. Then return the completed form to
Human Resources, as described on the form. Be sure to keep a copy of the form for your records.

B. Human Resources Reviews the Matter

Once the Human Resources Department has received your request, it will be reviewed as promptly,
thoroughly and confidentially as possible.

C. Meet with Human Resources

A Human Resources representative will discuss the matter with you as promptly as possible during
its review. He or she will then guide the discussion and try to help resolve your concerns. The goal
is to find an acceptable solution for everyone involved.

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 EXTERNAL DISPUTE RESOLUTION PROCESSES

Stages 3 and 4 consist of mandatory Mediation and Arbitration. While Stages 1 and 2 apply to any
dispute that might arise in the workplace, Stages 3 and 4 apply only to “Covered Disputes.”

What is a Covered Dispute?

Except as otherwise stated in this Program, a Covered Dispute includes any and all disputes,
issues, claims or concerns, whether past, present or future, that might be brought in court, under
applicable law. A Covered Dispute includes, without limitation: claims based upon or related to
discrimination, harassment, retaliation, defamation (including post-employment defamation or
retaliation), breach of a contract or covenant, fraud, negligence, emotional distress, breach of
fiduciary duty, trade secrets, unfair competition, wages or other compensation or monies
claimed to be owed, meals and rest periods, termination, tort claims, equitable claims, and all
statutory and common law claims unless specifically excluded below; claims under Title VII of the
Civil Rights Act of 1964, 42 U.S.C. §1981, the Americans With Disabilities Act, the Age
Discrimination in Employment Act, the Family Medical Leave Act, the Fair Labor Standards Act,
the Fair Credit Reporting Act, the Equal Pay Act, the Genetic Information Non-Discrimination Act,
and state or local statutes, if any, addressing the same or similar subjects; and any other claim
that may arise between you and the Company, including any dispute or claim relating in any way
to your employment or application for employment with the Company.

What is NOT a Covered Dispute?

A Covered Dispute does not include claims for worker’s compensation, state disability insurance
or unemployment insurance benefits, although it does apply to retaliation claims based upon
seeking such benefits. A Covered Dispute also does not include any claim that an applicable
federal statute expressly states cannot be arbitrated or made subject to a pre-dispute arbitration
agreement. Also, both you and the Company may petition a court of competent jurisdiction for
injunctive relief, but all determinations of final relief shall be decided only by way of arbitration.

Nothing in this Program prevents the making of a report to or filing a claim or charge with any
government agency, including without limitation the Equal Employment Opportunity
Commission, U.S. Department of Labor, Securities and Exchange Commission, Occupational
Health and Safety Administration, National Labor Relations Board, or Office of Federal Contract
Compliance Programs. Nothing in this Program prevents the investigation by a government or
law enforcement agency of any report, claim or charge otherwise covered by this Agreement.
The Program does not prevent federal administrative agencies from adjudicating claims and
awarding remedies based on those claims, even if the claims would otherwise be covered by this
Agreement. Nothing in this Program prevents or excuses a party from satisfying any conditions
precedent and/or exhausting administrative remedies under applicable law before bringing a
claim in Arbitration.

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Who decides what a Covered Dispute is or whether this Program is enforceable?

An Arbitrator, and not any federal, state, or local court or agency, has exclusive authority to
resolve any dispute relating to the interpretation, applicability, or enforceability of this Program.
However, the preceding sentence shall not apply to the “Class Action Waiver” described in
Section D below. Regardless of anything else in this Program and/or the American Arbitration
Association (“AAA”) rules or procedures, any dispute relating to the interpretation, applicability,
or enforceability of the Class Action Waiver may be determined only by a court.

STAGE 3: MEDIATION

If a matter cannot be resolved in Stages 1 and 2, it may be necessary to involve a professional

mediator, who listens objectively to both sides of the story, asks questions, and then offers creative
solutions to help the parties reach an agreement.

The mediator is neutral and can provide objective advice. He or she is not on the side of either the
Company or the associate. The mediator's job is to listen to the parties and help them reach an
agreement by opening the lines of communication. The mediator is not a decision-maker but helps
bring the two sides together to find common ground, which often results in a win-win solution. Also,
mediators often specialize in solving employment problems and can provide a level of experience in
this area that you and the Company may not otherwise have.

Unless you and the Company agree otherwise, the mediation will be administered by the American
Arbitration Association (“AAA”) and will be held under the AAA Employment Mediation Procedures.
These procedures are contained within the AAA Employment Arbitration Rules and Mediation
Procedures, which are available on the AAA’s website (www.adr.org).

Here are the steps for requesting mediation.

A. Complete a “Dispute Processing Form.”

These forms are available in every store and Distribution Center, and from the Human Resources
Department. Mark the box “Request for Mediation,” describe the facts of the matter, and explain
how you believe your concerns should be resolved. Return the completed form to the Human
Resources Department at the address shown on the form. Be sure to keep a copy for your records.

B. Select a Mediator

You and the Company must mutually agree upon the mediator. Once the Company receives your
Dispute Processing Form, a representative will contact you about selecting the mediator. If an
agreement cannot be reached on the selection of an arbitrator, the parties will request assistance
from the AAA.

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After a mediator is selected, the Company will pay any filing or administrative fees and expenses
charged by the mediator or the AAA. If you choose to have legal representation during the
mediation, you are responsible for paying any attorney fees, costs or expenses.

If the mediation occurs on a day that you would otherwise be scheduled to work for the Company,
the Company will also pay your regular wages or salary for that day. The Company will also pay your
reasonable travel expenses to and from the mediation.

C. Meet with the Mediator

The mediator will work with you and the Company to find a time and place that is convenient for
the mediation. Unless the parties agree to hold the mediation somewhere else, the mediation will
take place in the city or county where you currently work or last worked for the Company.

In mediation, it is up to you and the Company to reach an agreement. The mediator does not decide
anything for either party. Instead, he or she opens the lines of communication and offers possible
solutions to help you and the Company to reach an agreement that resolves the problem.

STAGE 4: MUTUAL ARBITRATION AGREEMENT

If a Covered Dispute cannot be resolved successfully in Stages 1, 2 or 3, then Stage 4 consists of final
and binding Arbitration. You and the Company mutually agree to resolve such a dispute in
accordance with this Mutual Arbitration Agreement (“Agreement”).

A. Covered Disputes

Except as otherwise provided in this Agreement, this Agreement applies to a Covered Dispute
(defined above) that you may have against the Company (also defined above) or that the
Company may have against you. This Agreement survives after your employment ends.

The Arbitrator, and not any federal, state, or local court or agency, shall have the exclusive
authority to resolve any dispute relating to the interpretation, applicability, or enforceability of
this Agreement. However, any dispute relating to the interpretation, applicability, or
enforceability of the Class Action Waiver (Section D, below) shall be determined only by a court
and not by an arbitrator.

B. Excluded Disputes

This Agreement does not apply to claims for worker’s compensation, state disability insurance or
unemployment insurance benefits; however, it does apply to retaliation claims based upon
seeking such benefits. This Agreement does not apply to claims for employee benefits under any
benefit plan covered by the Employee Retirement Income Security Act of 1974 or funded by
insurance. The Agreement does not apply to any claim that an applicable federal statute
expressly states cannot be arbitrated or subject to a pre-dispute arbitration agreement.

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Additionally, both you and the Company may apply to a court of competent jurisdiction for
temporary or preliminary injunctive relief relating to an arbitrable controversy; however, all
determinations of final relief shall be decided in arbitration.

Nothing in this Agreement or the Program prevents you from making of a report to or filing a
claim or charge with any government or law enforcement agency, including without limitation
the Equal Employment Opportunity Commission, U.S. Department of Labor, Securities and
Exchange Commission, Occupational Health and Safety Administration, National Labor Relations
Board, or Office of Federal Contract Compliance Programs. Nothing in this Agreement prevents
the investigation by a government or law enforcement agency of any report, claim or charge
otherwise covered by this Agreement. This Agreement also does not prevent federal
administrative agencies from adjudicating claims and awarding remedies based on those claims,
even if the claims would otherwise be covered by this Agreement. Nothing in this Agreement
prevents or excuses a party from satisfying any conditions precedent and/or exhausting
administrative remedies under applicable law before bringing a claim in Arbitration.

C. Initiating Arbitration

A party who wishes to arbitrate a claim or dispute covered by this Agreement must make a
written Request for Arbitration and deliver it to the other party by hand or certified mail. Any
Request for Arbitration to the Company should be delivered to Company’s registered agent for
service of process in the state in which the arbitration is to be conducted, or to the Company’s
Human Resources Department at 2425 West Loop South, 11th Floor, Houston, Texas 77027. Any
Request for Arbitration from the Company to you shall be sent to the last home address you
provided to the Company. The Request for Arbitration shall identify the claims asserted, the
factual basis for the claim(s), and the relief and/or remedy sought.

Instead of sending a written Request for Arbitration as set forth above, you may also complete
and submit a Dispute Processing Form. These forms are available in every store and distribution
center, and from the Human Resources Department. Mark the box “Request for Arbitration,”
describe the facts of the matter, and explain how you believe your concerns should be resolved.
Return the completed form to the Human Resources Department at the address shown on the
form. Be sure to keep a copy for your records.

Any Request for Arbitration or Dispute Processing Form must be submitted no later than the
expiration of the statute of limitations that applicable law prescribes for the claim. In the event
the parties agree to mediate a claim or dispute covered by this Agreement, the applicable statute
of limitations will be tolled (will not continue to run) from the time the parties agree to mediate
the claim through the conclusion of mediation. The applicable limitations period will continue to
run after the mediation has concluded. The Arbitrator shall resolve all disputes regarding the
timeliness or propriety of the Request for Arbitration or Dispute Processing Form and apply the
statute of limitations that would have applied if the claim(s) had been brought in court.

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D. Class Action Waiver

You and the Company agree to bring any claim or dispute in arbitration on an individual basis
only, and not as a class or collective action. You and the Company waive any right for a dispute
or claim to be brought, heard, or decided as a class or collective action, and the arbitrator has no
power or authority to preside over a class or collective action (“Class Action Waiver"). Only a
court of competent jurisdiction may decide whether the Class Action Waiver is enforceable. If a
final judicial determination is made that the Class Action Waiver is unenforceable, the Arbitrator
is without authority to preside over a class or collective action, and any class or collective action
must be brought in a court of competent jurisdiction.

E. Arbitrator Selection

An arbitrator shall be selected by mutual agreement of the parties. In the event the parties
cannot agree to an arbitrator, they shall proceed to arbitration before a single arbitrator under
the AAA and the then-current AAA Employment Arbitration Rules (available from the AAA’s
website, www.adr.org), provided that if there is a conflict between the AAA Rules and this
Agreement, this Agreement shall govern. Unless the parties agree otherwise, the Arbitrator shall
be either an attorney who is experienced in employment law and licensed to practice law in the
state where the arbitration will take place or a former judge from any jurisdiction. The Arbitrator
shall be selected as follows: the AAA shall give each party a list of 7 arbitrators drawn from its
panel of arbitrators. Each party shall have 10 calendar days from the postmark date on the list
to strike all names on the list he/she/it deems unacceptable. If only one common name remains
on the lists of all parties, that individual shall be designated as the Arbitrator. If more than one
common name remains on the lists of all parties, the parties shall strike names alternately, with
the Claimant striking first, until only one remains and that person shall be designated as the
Arbitrator. If no common name remains on the lists of all parties, AAA shall furnish an additional
list of 7 arbitrators from which the parties shall strike alternately until only one name remains,
with the party to strike first determined by a coin toss. That person shall be designated as the
Arbitrator. If a person selected cannot serve, the selection process shall be repeated.

F. Rules/Standards Governing Proceeding

The Arbitrator may award any remedy available under applicable law, but remedies shall be
limited to those that would be available to a party in their individual capacity for the claims
presented to the Arbitrator. The Arbitrator shall apply the substantive federal, state, or local law
applicable to the claims asserted. The Arbitrator is without authority to apply any different
substantive law. The location of the arbitration proceeding shall be in the county where you last
worked for the Company, unless each party agrees otherwise. The Arbitrator has the authority
to entertain a motion to dismiss and/or a motion for summary judgment and shall apply the
standards for such motions under the Federal Rules of Civil Procedure. The Federal Rules of
Evidence shall apply to the proceeding. The Arbitrator will issue a decision or award in writing,
stating the essential findings of fact and conclusions of law. A court of competent jurisdiction
shall have the authority to enter judgment upon the Arbitrator’s decision/award.

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The parties have the right to conduct discovery and present witnesses and evidence as needed
to pursue their claims and defenses, and any dispute in this regard shall be decided by the
Arbitrator. Each party shall have the right to subpoena witnesses and documents, including
documents relevant to the case from third parties. Each party shall have the right to take the
deposition of 2 individual fact witnesses and any expert witness designated by another party.
Each party shall have the right to propound 1 set of written interrogatories (not to exceed 15)
and 1 set of requests for production of documents (not to exceed 15) to any party. Additional
discovery may be conducted only by agreement or as ordered by the Arbitrator. At least 30 days
before the final hearing, the parties must exchange a list of witnesses and copies of all exhibits
to be used at the hearing.

G. Costs/Fees Associated with Arbitration

Each party will pay the fees for his/her/its own attorneys, subject to any remedies to which that
party may later be entitled under applicable law. Unless otherwise prohibited by law, the
claimant shall be responsible for paying an initial filing fee of $200 or an amount equal to the
applicable filing fee had the claim been brought in a court of law, whichever is less. The Company
will pay the Arbitrator's fees and any fee for administering the arbitration. The Arbitrator will
resolve any disputes regarding costs/fees associated with arbitration.

H. Opting Out

If you do not wish to be bound by this Agreement, you must send a letter by certified mail to the
Human Resources Department at 2425 West Loop South, 11th Floor, Houston, Texas 77027,
within 5 business days. In that letter, you must provide your name and associate number and
state that you are opting out of this Agreement. If you timely opt out as provided in this section
H, neither you nor the Company will be bound by this Agreement.

J. Entire Agreement/Severability

This is the complete agreement relating to the resolution of disputes covered by this Agreement,
and it supersedes any other/previous agreements related to the resolution of disputes covered
by this Agreement. Subject to Section D above, if any portion of this Agreement is deemed
unenforceable, the unenforceable provision or language shall be severed from the Agreement
and the remainder of the Agreement will be enforceable. Notwithstanding any contrary
language, if any, in any Company policy or Handbook, this Agreement may not be modified or
terminated absent a writing signed by both parties.

J. Associate’s Agreement

You may accept and agree to the terms of this Agreement by signing this Agreement by hand (if
this is a paper copy) or by using an electronic signature (if you are reviewing this Agreement on
a computer).

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 ACKNOWLEDGEMENT OF DISPUTE RESOLUTION PROGRAM AND
MUTUAL ARBITRATION AGREEMENT

I have received a copy of the Dispute Resolution Program (“Program”), including the Mutual
Arbitration Agreement. I acknowledge and understand that the Program covers and applies to all
associates of the Company (as defined in the Program), including me. I agree to be bound by the
terms of the Mutual Arbitration Agreement (“Agreement”), and I understand that any c l a i m o r
dispute c o v e r e d b y t h e A g r e e m e n t must be resolved through final and binding arbitration
in accordance of the terms of the Agreement.

Tori Waters 11/5/2019

ASSOCIATE’S SIGNATURE DATE

Tori Waters

ASSOCIATE’S PRINTED NAME

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