Rt. 17 N. Suite 213. Rochelle Park, NJ. 07662(800) 765-BANG (2264) / (206) 202-1544 FAX

www.fwextravaganza.com

2016 Policies & Procedures Manual

Federal ATF Licensed Fireworks Importer License #8-NJ-00310US DOT Hazardous Materials Carrier DOT #2064141

MD Explosives Dealer License #W-016NY State Dealer/Manufacturer License #D-5741NJ Permit to Use Explosives License #003309

NYC Fireworks Contractor – Certificate of Fitness #82096355

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TABLE OF CONTENTS

Company Directory …………………………………………… 2-3

Contract Rules and Regulations …..………………………… 4-5

Courtesy and Protocol for Displays ….…………………….. 5-8

Training Procedures for New Pyrotechnicians……………. 9

Employment Outline …………………………….................. 10-14

Driving & Traffic Violations Policy ….…………………….. 15-16

Emergency Plan ..…………………….………….…………... 17

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Company Directory Fireworks Extravaganza

John SagariaPresident(800) 765-2264 ext. 713jsagaria@fwextravaganza.com

Bryna StankiewiczAdministrative Assistant(800) 765-2264 ext. 703bstankiewicz@fwextravaganza.com 

Donna CosterMaryland Manager(800) 765-2264 ext. 752 (443) 740-1781 – celldonna@fwextravaganza.com

Larry BeardSales Manager(800) 765-2264 ext. 754larry@fwextravaganza.com

Brian HollenbackPermitting Manager(800) 765-2264 ext. 751bhollenback@fwextravaganza.com

Mary Ann GrassoDOT Compliance(800) 765-2264 ext. 755maryann@fwextravaganza.com

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Company Directory Fireworks Extravaganza cont.

Walden Bunkers(800) 765-2264 ext. 777

Glen Rock Magazine(717) 235-0704

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FIREWORKS EXTRAVAGANZA (FE)CONTRACT RULES AND REGULATIONS

The following rules, regulations, terms and conditions are incorporated in all Fireworks Extravaganza (“FE”) contracts.

1. LEAD PYROTECHNICIANS. The Lead Pyro Technician is solely responsible for crew selection, determining crew expertise and participation. The Lead Pyro Technician represents to FE that his/her crew members are qualified, fully aware of the hazards and are eligible to perform the fireworks display.

2. DOT REGULATIONS. The Lead Pyro Technician is solely responsible for the conduct of himself/herself and his/her crew to comply with all Department of Transportation regulations for the purpose of transportation of fireworks, and for the equipment supplied by FE. All drivers shall have a valid drivers license, a CDL with an “H” endorsement, the applicable registrations, emergency information and related required paperwork in their possession while operating any vehicle owned, leased or utilized for the transportation of FE fireworks supplies and equipment. The Lead Pyro Technician is to specifically make these documents available to each driver and shall review with each driver all applicable DOT regulations.

3. NFPA-1123-2010 CODE. The Lead Pyro Technician will strictly comply with all applicable NFPA-1123-2010 Code requirements and/or guidelines for fireworks displays and comply with FE procedures for setup. This is for the express purpose of insuring a safe display. These rules include, but are not limited to:a. All finales shall be properly covered so that they will not prematurely

discharge; andb. All ready boxes shall be in compliance with NFPA 1123-2010 codes at all

times during the display to avoid accidental discharge.

4. SITE CONTROL. Only authorized FE personnel, on-duty fire and/or police department personnel, or personnel designated by the sponsor will be permitted in the firing site. No spectators, friends or families of the shooter or crew are permitted on site. The Lead Pyro Technician shall assure strict compliance with these requirements.

5. ALCOHOL/DRUGS. Lead Pyro Technician shall be responsible to assure that no member of the shooting crew consumes or evidences the presence of any drugs or alcohol at any time during the shoot including, but not limited to, the time spent loading and transporting the material to and from the display site, setting up time, firing, and cleaning up of the display.

6. MISSING EQUIPMENT OR INVENTORY . The Lead Pyro Technician shall attempt to assure the return of all FE equipment and inventory. The Lead Pyro

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Technician agrees to cooperate fully in any subsequent investigation and/or criminal prosecution for missing equipment and/or inventory.

7. AMENDMENTS TO RULES AND REGULATIONS. The Rules and Regulations may be amended from time to time which shall be reduced to writing. The receipt of a copy of the Rules and Regulations are evidenced by his/her initials hereinafter provided.

8. SITE SEARCH FOR UNFIRED MATERIAL/DUDS. It is the responsibility of the Lead Pyro Technician in charge of the display to verify that all potentially unfired material or duds are located and removed from the site immediately both after the display and again at dawn the morning after the display. The Lead Pyro Technician must designate a responsible individual (crew members, fire marshal, rep, etc.) to perform a search the next morning if he/she is not able to do so. In any case, FE must be notified by calling Donna Coster at 800-765-2264 x752 of any unfired debris/material existing on site and that search is necessary. Any unfired material must be returned to FE.

9. PHONE COMMUNICATIONS. If a driver must detour from his original route plan or is detained and will arrive at the site later than planned ETA. He/ she must contact the 443-740-1781 and update his arrival.

10. UNDER BATFE GUIDELINES. FE is responsible to submit an Employee Possessor Questionnaire (EPQ). The Lead Pyro Technicians is responsible to have each new crew member complete and return the EPQ to FE immediately. Please review the EPQ form to make sure all information is completed. If a crew member deems himself/herself a “VOLUNTEER” then a waiver form must also be completed and returned to FE immediately.

FIREWORKS EXTRAVAGANZACOURTESY AND PROTOCOL FOR DISPLAYS

APPEARANCE:

Please remember that you are representing Fireworks Extravaganza

Do not wear anything imprinted with obscene, immoral or foul words and/or graphics and pictures.

As representatives of FE your appearance and personal hygiene should not be offensive.

Do not wear Rayon or Polyester outerwear. It melts easily if struck by stars or sparks and can cause burning. 100% Cotton is best.

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Upon request FE provides 3 sets of safety glasses, helmets and earplugs to all new Pyro Technicians. These are recommended to be worn for all displays.

Sun Protection: Please consider wearing a sun block for your protection. You will be out in the sun all day and may get severely sunburned.

Bug Repellent: Many sites require this due to wooded areas and weather condition

SPONSOR COORDINATION:

You and your crew are Fireworks Extravaganza. Although there is communication between the Sponsor and the office staff, the only physical contact is often the crew that does the display. Please make every effort to provide a “good” first and last impression.

Be polite, courteous and respectful of the Sponsor’s opinions and property. Remember that although this is just another “show” for you and your crew, the Sponsor has spent considerable time, effort and money for this event.

Cooperate with safety, fire and other official functionaries who are present at most displays. Keep in mind that these peoplee are usually donating their time and appreciate being treated with the same professional courtesy that you and your crew expect.

It is company policy for the Lead Pyro Technicians to contact the Sponsor at least 4 days prior to the display to coordinate your

arrival time, the start time and duration of the display. Some sponsors have special requests that they might require.

SAFETY ZONE:

Upon arrival at the site:

Document on the Lead Shooter Report and Driver Report of your arrival.

Check in with the Sponsor

Physically inspect the site to verify that the Sponsor has roped off or otherwise provided for an area for the setup of the fireworks.

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Verify that all NFPA distance requirements from the audience, parked cars and inhabited buildings are met. You cannot be too safe!

Sponsors and official personnel that enter the setup area must be politely asked to exit the area and to walk around the perimeter.Intruders must politely but firmly be escorted from the area after an explanation of the existing danger has been given. If the intruders persist, request that the Sponsor or Security Personnel become involved. They should escort the intruders off the setup area and secure the perimeter.

CLEAN UP AND GROUND REPAIR:

When the display is successfully completed and you are basking in the wild applause of the audience, don’t forget that a lot of work remains!

A thorough search of the area must be made to locate and secure any duds or partially misfired pyrotechnic material.

Do not allow spectators to assist.

Sponsors are not allowed to assist unless they have been properly trained.

This first search and the one performed the following morning by the Sponsor are the two MOST important functions related to a fireworks display other than the safe setup and firing of the display itself.

At the time of firing the display, only the operators of the display should be located in the fall-out area. All family members and other spectators should be relocated outside the fall out area for their safety and protection.

During the search, please pick up fuse paper, partial shell casings, safety caps, flares and any other debris that was caused by the display.

Fill in any mortar holes thoroughly and replace the sod neatly.

Properly reload the vehicle and return the equipment and any faulty fireworks to the FE Warehouse/Bunker. Make sure cargo is braced and locked and your return shipping papers are correctly completed.

Make sure all unfired shells are removed from the racks and properly packaged and returned to FE.

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Fill out the Lead Shooter and Driver’s Show Report. The driver’s packages and these forms have been changed for easier completion. These forms should be dropped off in the drop box at Glen Rock or Walden. If this is not possible, please mail to:

Fireworks ExtravaganzaAttn: Accounting

174 Route 17 North, Suite 213Rochelle Park NJ 07662

With-in three (3) days of the display. Please include completed driver’s log or 100 mile radius form, pre and post trip inspections form, and signed and dated bill of lading in the envelope provided.

With this new easier system, FE will be able to pay each shooter and assistant in a much more timely fashion. Please make sure the office has all your direct deposit information prior to the display. If you have any questions, please contact our accounting department at 800-765-2264 x770.

FIREWORKS EXTRAVAGANZA

TRAINING PROCEDURES FOR NEW PYROTECHNICIANS

1. Only individuals 18 years or older are permitted on site.

2. An individual that is out for the first time, WILL NOT LIGHT, any product.

3. All setting up procedures performed by trainees MUST be supervised and checked by the licensed Pyro Technician or designated qualified assistant.

4. After the licensed Pyro Technician feels that the trainee is ready and responsible to “light” the pyrotechnics, the trainee MUST be supervised at all times until the licensed Pyro Technician feels that the trainee is qualified to “light” material independently.

5. The trainee must be instructed on the proper procedures to search the site and dispose of any unfired material.

6. The trainee must be instructed on the proper “loading” of the truck so the equipment does not shift in the return traveling.

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7. Any individuals assisting with the loading and unloading of the vehicle are under the direct responsibility of the lead Pyro Technician. Due to the extreme danger of our occupation, ONLY individuals known to FE and have completed and returned and “Employee Possessor Questionnaire” can handle the explosives.

J&J Computing, Inc. d/b/a Fireworks ExtravaganzaEmployment Outline & Agreement:

Listed below is the outline of employee responsibilities/benefits. This document outlines full time and part time benefits. Some benefits apply only to full time positions (as specified below). They are listed, in case you become Full time in the future. At the start of the agreement this employment is considered part-time.

Shows Sales & Compensation

Responsibilities include:

- Discussions/Meetings with Clients about Shows - Handling Leads provided by FE- Seeking out New Leads - Meeting with Clients on-site as needed - Attending yearly company training Sessions- Attending yearly company product demo’s - Preparation of Sales Proposal, Quotes and Bids to clients- Site Survey and Site Drawing Preparation - as required - Suggestions on Material selection/quantities and type to be used in the show. - Work on securing crewmembers for new shows brought to the company. - Obtaining from clients the following documents, as per the company timeline

requirements:o Sales Contract o Insurance Information form /Permit Applicationo Deposit Payment

Sales Compensation:

Finders Fee- First Year: 10% of gross show price.

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For shows that are new and have not been done by FE for at least three years prior.Finders Fee- Future Years: 5% of gross show sale price

After the first year, unless the site changes there is very little addition work by salesperson. All contracts, paperwork & forms will be provided & handled by the FE Office staff.

The compensation model is one that is designed to allow the salesperson to predominantly concentrate on new business, while building a base of recurring income from old business, that requires little additional work in future years once the show is set.

Additional Compensation Incentives:

Shows Over $25,000 in sale price +1% Bonus Shows over $50,000 in sale price +2% Bonus Shows over $100,000 in sale price +3% Bonus Arrange / Manage Crew for show: +1% BonusSubscription Shows + 1% Bonus

This incentive is payable for shows sold to clients that number more then 4 shows per season. (Example would be recurring shows at a baseball stadium or concert venue)

Product Sales & Compensation

Responsibilities include:

- Proposal to clients / provide prices - Discussion and advising of clients products available - Obtaining from Clients the following documents, as per the company timeline

requirements:o ATF License o Intended Use formo Driver’s Licenseo Deposit Payment

Sales Compensation: 10% of the net profit of the product sale – Net profit is the sale price less the

landed product cost from China.

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Payment of Commissions

Employee must complete a commission report form, and submit that to FE for payment.

All commissions will be paid no later then 45 days from completion of the contract. Many times payment can & will be made sooner.

If desired and a previous sales history is present, the company will offer a weekly draw against future commissions. This draw will be paid on the weekly company payroll in the form of a weekly amount from $100-$1000 per week).

Reconciliation of the draw payments will be made on a quarterly basis.

Performing Shows & Compensation

Operating as a “Shooter” on shows is available and encouraged by FE. Payment for working on shows and being a lead shooter will be made over and above the other forms of compensation.

Being the lead of the show, will be paid at the prevailing rate of Shooters Compensation. (Currently 11% of sale price).

The distribution of the total percentage to be at the discretion of the lead to his crew.

If the shooter desires they may use their own firing system, but the use of that system has to be approved by John Sagaria in advance.

Show reports are due when the equipment is returned and payments are made on the company payroll the Friday following the show.

Additional Work & Compensation On-Site and Off Site

On-Site Work:

From time to time additional work may be available that are not sales related. This work may be available at any of the FE storage facilities.

This type of work would include:

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- Building/Prepping Products (i.e.: set pieces, candle racks, batteries, props, boards etc.)

- Building Racks - Loading and Unloading of Trucks & Product Containers - Inventory at Magazines - Meetings at Magazines with Various officials - Procuring equipment (i.e.- Company Trucks, Trailers, Rack Storage etc.)

This work is paid on an hourly basis at a competitive rate. Employee must submit time sheet weekly by Monday 9am for the previous weeks work or there will be no compensation. Time Sheets are sent to accounting@fwextravaganza.com or added to the Google Docs Spreadsheet provided by FE.

Additional Compensation / Benefits

Below list additional benefits of working with FE, some are available only to full time employees as outlined below.

Expenses/Vehicle Usage Mileage will be paid for use of your car at a rate of 45 cents per mile. .

You will be provided with a company American Express card for expenses. All tolls will be paid; employee must get a receipt. Company credit card cannot be used for employee's personal vehicle where mileage is paid.

Expenses will be paid on a monthly basis; an expense form and all receipts must be attached and given to the accounting department on the first of each month. Expenses will be added to the first payroll check after submission. Employee is responsible to have funds for these expenses, as needed or use the company provided American Express card.

Employee Equipment Purchases Through our sister company (ITC) an Authorized Apple Dealer, employee may purchase any Apple products we sell at dealer cost. This product is for employee’s own or family use and not intended for resale.

Company Sponsored Trips/Travel

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From time to time, the company will make available travel to the employee. The company will pay for expenses to attend certain approved trips. In the past these trips have included: APA Convention, NFA Convention, PGI Convention, Trips to China Factories, Fireworks Competitions in the US and abroad. If a show is for development of FE (Such as PGI), there usually is no compensation other then the trip and expenses.

Company Laptop (Full Time Employee’s Only) FE will issue a company laptop to all full time employees. This laptop will remain the property of the company, but will be available for the employee to take home and use at will. It must be returned upon termination of employment

Company Cell Phone (Full Time Only -> Part Time Available)FE will purchase and pay the monthly service fee for a smartphone with data for full time sales people. This will remain the property of FE and it must be returned upon termination of employment

Part time salespeople can receive the same with the cost deducted form commission reports.

Health Plan Benefits (Full Time Only -> Part Time Available)

FE will provide individual medical insurance after 90 days of employment. The cost of the medical benefits is $12.50 per week the deduction will be made to your paycheck. Benefits include a prescription card as well.

The current medical plan is the Horizon Blue Cross / Blue Shield. The plan is for the Employee, family members can be covered at the additional cost; this is the actual cost from the health plan provider.

Part time salespeople may join the FE Company plan with the actual cost of the plan to be deducted from commission payments.

Paid Vacation (Full Time Only)A vacation request form must be filled out at least 60 days in advance. You will be entitled to the following Vacation time paid (40 Hours Paid per vacation week).

First Full Year 1 Week (Available Six Months after Hire Date} Second Full Year 2 Weeks Fifth Full Year 3 Weeks

Vacation days must be scheduled & cannot be used for “Instant Off Days”. Many times a 60-day notice is not needed, but a 60-day notice will guarantee the scheduling of the vacation days.

Paid Sick/Personal Days (Instant days off/no notice)- (Full Time Only)Employees are entitled (3) personal/sick days every six-month period. Employees exceeding these allotted days will not be paid for work time missed. These days are available after six months of employment

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QuestionnaireIt is understood that all answers provided on the questionnaire/application have been answered accurately and truthfully.

Non Disclosure AgreementWhile working for FE, both parties agree to enter into a confidential relationship with respect to the disclosure of certain proprietary and confidential information. “Confidential Information” shall include all information or material that has or could have commercial value or other utility in the business in which Disclosing Party is engaged.

Termination Either party may terminate this agreement with 30 days advance written notice. All commission/expense reports must be submitted at that time and will be paid by FE no later then the 30 days. At termination any and all company property, keys, credit cards must be returned prior to the final check being released.

Total AgreementThis document represents the total agreement and no verbal agreements will apply.

Driving and Traffic Violation Policy

We deeply value the safety and well-being of all employees. Due to the risk of motor vehicle accidents resulting from traffic congestion, unsafe driving habits, road conditions and distraction, Fireworks Extravaganza is instituting a safety driving policy and rules. This safety policy applies to all employees who operate a motor vehicle on company business and/or company time, whether operating a company vehicle or personal vehicle.

Safety Rules

1. Inspect vehicles prior to use to ensure that they are in safe operating condition.a. If a vehicle does not pass inspection, notify your site supervisor. For rental

vehicles, contact Ryder or Budget breakdown services prior to notifying office.b. Vehicles are not to be operated unless in a safe operating condition.

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2. Drivers must be physically and mentally able to drive safely. Fatigue, medications and physical injuries can affect an employee’s ability to safely operate a vehicle.

3. Drivers must conform to all traffic laws and make allowances for adverse weather and traffic conditions. Speeding and aggressive behavior will not be tolerated.

4. All vehicle occupants must wear seat belts whenever a vehicle is in motion.

5. Cell phone usage, including texting, is prohibited while driving for company purposes.

6. Use of radar detectors is forbidden in all vehicles owned or used by the company.

7. Hitchhikers and passengers other than company employees are not permitted.

8. Cargo should be secured and all doors should be locked, both when the vehicle is en route and when it is parked.

9. No smoking is prohibited in or within 50 feet of any company vehicles.

10. Vehicles are to be maintained in a clean and orderly manner, i.e. Trash is removed, parked in designated areas, keys returned and paperwork completed as directed after each use.

11. Respect the rights of other drivers and pedestrians.

12. Drivers may not be under the influence of drugs or alcohol while operating a vehicle for company purposes.

13. All traffic violations, whether on company or personal time, must be reported to Jessica Brown within 24 hours or by the next business day. CDL drivers will also be required to complete a violation review form.

14. Fireworks Extravaganza will review motor vehicle reports annually.

15. If an employee has a change in license status, including a renewal, he or she must give a copy of both sides of his or her new license to Jessica Brown for the employee’s file.

16. Employees are responsible for maintaining a valid driver’s license.

Safety Rules Enforcement

Employees will be subject to disciplinary action up to and including termination for violating any of the above rules.

Accidents

Any employee who is involved in an accident while driving for company purposes will be required to complete an accident report using the company’s auto accident investigation kit while at the scene of the accident. He or she must return the report to his or her supervisor on the same day to review the information to make sure it is complete. The employee must go for his or her post-accident drug and alcohol analysis at one of our designated facilities. The employee may also be required to discuss the accident with Human Resources or the safety manager.

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Management will review all accidents and determine whether they were preventable or non-preventable. A preventable accident is defined as an accident in which the driver failed to do everything reasonably possible to prevent it from occurring.

In case of an accident or accidental spill of hazardous material driver’s will to the best of their ability:

Secure scene to best of your ability to prevent further accidents. Check to see that your driving partner is OK Limit the spread of material, only if you can safely do so. Keep shipping papers with you & provide to emergency response personnel upon arrival. Keep people far away and upwind Warn others of the danger. Call for help Notify office for further instructions. Take pictures of the scene

Motor Vehicle Report (MVR) Standards

MVRs will be checked annually for all employees who may be required to drive for company purposes. The MVR will be reviewed to ascertain whether the employee holds a valid license and whether his or her driving record is within the parameters set by the company.

Drivers will be disqualified from driving vehicles for company purposes for any of the following reasons:

1. More than one violation for driving under the influence of alcohol or a controlled substance will result in permanent suspension of driving privileges at Fireworks Extravaganza.2. Any criminal conviction that involves a motor vehicle (e.g., a felony, hit and run, negligent homicide) in the previous five years3. Any of the following violations incurred in the previous three years:

a. Any combination of more than three moving violations (any violation resulting in an at-fault auto accident automatically counts as two violations)

b. Any violation less than three years old for an alcohol- or controlled substance-related driving offense

c. Refusing to take a breathalyzer testd. Careless or reckless driving that results in injury to persons or propertye. Passing a stopped school bus

f. Leaving the scene of an accident without stopping to file a reportg. Racing

2. Any combination of more than two moving violations and/or at-fault accidents in the past 12 months

FIREWORKS EXTRAVAGANZA (FE)EMERGENCY PLAN-DISPLAY SITE

REMAIN CALM

1. Before each display, the Lead Pyro Technician must review his/her emergency plan with his/her assistants. At this time, the Lead Pyro Technician should

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appoint a “2nd in command” to handle any communications or “take control” of the site if he/she become disabled OR unable to handle the situation.

2. Immediately after the accident, the Lead Pyro Technician should assess the accident. Administer first aid if at all possible. First Aid kits are in each cab of the truck.

3. Immediately notify the first responders/EMT’s/fire department on the site, if they are needed. If possible, have a crewmember take photographs of the site before anything is disturbed.

4. As soon as possible, the shooting area must be secured. If it is not possible for the lead to secure the area, the “2nd in command” should handle this responsibility. Any electrical equipment should be dismantled. Please leave all shells in mortars until appropriate first aid has been rendered, the area has been secured, and the AHJ/investigators give permission to begin dismantling and tearing down.

5. Maintain to keep the site secured until all live material is safely removed from the site and an inspection of the site has been made to ensure this.

6. Assess the situation and as soon as possible. The “Lead Pyro Technician” or “2nd

in command” call FE at 443-740-1781 or 925-482-6227. Please call when the situation is “under control” and complete and accurate information can be given.

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