Maui Varieties Limited

Maui Varieties Limited

dba BFS, Inc., ACE Hardware Hawaii Inc, Dean’s Inc,

Maui Varieties Investments, Inc.

Substance Abuse Policy

PURPOSE

Maui Varieties Limited, dba BFS, Inc., ACE Hardware Hawaii, Inc, Dean’s Inc and Maui Varieties Investments, Inc. ("Company") wishes to prevent workplace problems associated with illegal drug use and alcohol misuse. These problems involve injuries to employees, damage to employee property, an unsafe work environment, work performance deterioration, and decreased productivity by the workforce. Since substance abuse can have serious safety and job performance consequences, this Substance Abuse Policy ("Policy") establishes an illegal drug and alcohol-free work environment in order to ensure a more productive and safe working environment, and prevent accidents, injuries and thefts from occurring.

SCOPE

All applicants for employment and employees of the Company must comply with this Policy as a condition of employment and continued employment with the Company.

GUIDELINES

Illegal Drug Use and Alcohol Misuse

1. The use, sale, transfer, manufacturing, or possession of unauthorized alcoholic beverages, illegal drugs or drug paraphernalia during working hours, while on the job or on Company premises or vehicles is prohibited.

For the purposes of this Policy, "alcohol" or "alcoholic beverage" means any beverage with an alcoholic content. This includes any component of “liquor” or “intoxicating liquor” that is the product of distillation of any fermented liquid, whether rectified or not, whatever may be the origin thereof, and includes synthetic ethyl alcohol as those terms are defined by applicable statutes and regulations.

"Illegal drug" means any drug or controlled substance, the sale, possession or consumption of which is illegal. This includes, but is not limited to, marijuana (THC), cocaine, opiates, amphetamines (including crystal methamphetamine), phencyclidine (PCP), or any drug listed in applicable federal, state, and local statutes and regulations.

"Drug paraphernalia" means containers or other objects used, intended for use, or designed for use in storing or concealing illegal drugs, and objects used, intended for use, or designed for use in consuming, inhaling, or otherwise introducing any illegal drug into the human body.

"Vehicles" means any motor vehicle, including but not limited to cars, vans and trucks.

2. Reporting to work or working while under the influence of illegal drugs and/or alcohol is prohibited.

For the purposes of this Policy, "under the influence" means being in a physical or mental condition which affects work in any way; creates a possible risk to the safety and well-being of the individual, co-workers, the general public, and/or Company premises; having any detectable or measurable level of any illegal drug in the body, including but not limited to, a positive test result for substance abuse testing conducted pursuant to this policy; and/or having a blood-alcohol level that is considered to be under the influence of alcohol pursuant applicable statutes and regulations.

3. Employees must notify a Company supervisor or official if their use of prescription medication may adversely affect their fitness for duty or job performance.

TESTING

Post-offer Testing

1. The Company shall require all applicants for employment to whom a job offer has been extended to provide appropriate biological specimens for purposes of drug screening and testing. Job applicants shall not be permitted to reschedule drug testing after they are notified such testing has been scheduled, unless approved otherwise by a member of the Management Team and only in the event of extraordinary circumstances. The Company shall not hire any job applicant who receives a positive test result for drug testing.

Reasonable Suspicion Testing

1. The Company shall require any employee to submit to drug and/or alcohol testing if the Company has reasonable suspicion to believe the employee has violated any of this Policy's guidelines.

For the purposes of this Policy, "reasonable suspicion" means a good faith belief of the Company, even if incorrect, that the Company believes that the current and/or work-related actions and/or appearance and/or conduct of an employee are indicative of the use or being under the influence of an alcoholic beverage and/or illegal drug. An unexplained workplace accident may constitute reasonable suspicion to require the conduct of reasonable suspicion drug and/or alcohol testing. Other examples include, but are not limited to, deterioration in work performance, absenteeism or tardiness, fatigue at work, or other signs of being under the influence of drugs or alcohol (i.e. glazed, watery or bloodshot eyes, slurred speech, lack of coordination, staggering, sunglasses worn at inappropriate times, smell of alcohol on breath, etc.)

2. The observations for reasonable suspicion drug and/or alcohol testing shall be made by a Company supervisor or official and shall be based on specific behavior, appearance, speech or body odors of the employee at the time of the observations. Such observations shall be reviewed by a member of the Management Team, who will make the determination of whether reasonable suspicion testing drug and/or alcohol testing shall be conducted. Only a member of the Management Team may require an employee to submit to reasonable suspicion drug and/or alcohol testing.

For the purposes of this Policy, the "Management Team" means the President, Company Officers, Lead Store Managers, Controller, Asset Protection Manager, and the Human Resources Manager, HR Administrator-Seattle and any other management personnel specifically designated by the President from time to time.

Post-Accident Testing

Any employee who is involved in an accident in the course of performing the employee’s job duties which involved the use of vehicles, heavy equipment, power tools or other dangerous instrumentalities or working conditions and which results in injury or property damage may be tested in cases where a Company manager or supervisor determines that:

(1)The accident was caused by human error or could have been avoided by reasonably alert action;

(2)The employee to be tested was an active participant in the accident circumstances; and

(3)Use or abuse of a controlled substance cannot be discounted as a contributing factor.

Return-To-Duty

Any employee who returns to work in any capacity at the Company after more than a six month leave of absence from work must produce a negative test result for drug and alcohol testing prior to returning to duty in any capacity at the Company.

Random Testing

1. In order to ensure a safe and productive work environment, the Company may conduct unannounced random drug testing of not less than ten percent (10%) of its covered employees. Upon notification, employees shall report directly to the collection site.

2. Unannounced random testing will be determined by a computer generated program. The pool will contain all covered employees based on the latest payroll staffing report (updated each pay period). Each employee in the pool has an equal chance of being selected for random testing. Since employees to be tested are selected randomly, an employee may be selected more than once per calendar year.

3. Unannounced and random drug testing may occur one or two times per calendar year.

Testing Procedures

1. All drug and alcohol testing conducted pursuant to this Policy shall comply with applicable federal and state laws and regulations.

2. The cost of drug testing and/or alcohol testing required by this Policy shall be paid by the Company, except that the employee shall be responsible for the cost of re-testing of the original specimen, if a retesting is necessary.

3. For testing resulting from the implementation of this policy, reasonable suspicion, post-accident, and random drug and/or alcohol testing, the employee including management shall be notified of his or her requirement to submit to testing immediately prior to the start of their duty, during their duty, or immediately after the end of their duty. Generally, for the testing resulting from the implementation of this policy, reasonable suspicion testing and post-accident testing, the employee shall be escorted to the collection site by a Company manager, supervisor or member of the Management Team. The employee shall be considered to be "on duty" until the collection procedure at the collection site is completed.

For the purposes of this Policy, "collection site" means a place where individuals present themselves for the purpose of producing a specimen or sample to be analyzed for alcohol and/or illegal drugs.

4. Employees required to undergo reasonable suspicion or post-accident drug testing shall be placed on indefinite suspension without pay pending investigation for the time period from the collection of the specimen to the time they are informed of the test results. If the test results are negative, the employee shall be paid for wages lost during the suspension without pay, unless otherwise disciplined pursuant to any Company policies or guidelines. If the test results are positive, the suspension without pay pending investigation may, at the Company's sole discretion, be counted towards any disciplinary suspension without pay that is imposed upon the employee.

Drug Testing

1. Unless otherwise notified in writing and in advance of specimen collection, all drug testing conducted pursuant to this Policy shall involve laboratory analysis of urine specimens for the presence of marijuana (THC), cocaine, opiates, amphetamines (including crystal methamphetamine), phencyclidine (PCP), or any drug listed in applicable federal, state, and local statutes and regulations.

1. The Company may require an employee to provide a blood specimen for alcohol testing.

3. You are advised that over-the-counter medication or prescribed drugs may result in a positive test result for drug testing. For this reason, the Company's Medical Review Officer may need your assistance in identifying which medications or drugs you may be taking at the present time and may have taken within the past thirty days to ensure accuracy of testing results. A medication disclosure form may be provided to you by the Company or the laboratory/collection site. This notice is provided in compliance with applicable law and regulations.

For the purposes of this Policy, "Medical Review Officer" means a licensed doctor of medicine or osteopathy with knowledge of drug abuse disorders, and is appointed by the Company to review laboratory drug testing results and verify positive test results for drug testing.

DUTY TO COOPERATE

Employees must cooperate in a timely manner with all drug and alcohol testing procedures mandated by this Policy, including but not limited to cooperating with the collection site personnel or Medical Review Officer, providing an unadulterated specimen within the time period specified, and providing necessary consent and authorization to release drug and/or alcohol testing results and information relating to any alcohol and/or drug test and any substance abuse assistance evaluation from the laboratory or Medical Review Officer to the Company. If deemed necessary by the Company and as permitted by law, an employee shall authorize disclosure of records relating to his or her alcohol and/or drug abuse and any treatment.

DISCIPLINE

Compliance with these requirements is considered an essential job qualification for all job assignments because of the Company's concern for your safety and the safety of your fellow employees, our customers, clients, and the general public.

Each employee situation shall be reviewed on an individual basis, and disciplinary action, up to and including discharge for the first offense, may be considered an option in each case.

The failure or refusal to comply with any procedures required by the Company pursuant to this Policy shall constitute insubordination that could result in disciplinary action, up to and including discharge. An employee is considered to have refused to take a drug and/or alcohol test if, among other things, the employee fails to arrive at the collection site at the assigned time or within a reasonable period of time after notification; fails to provide the necessary specimen; fails to provide a sufficient amount of specimen with no medical explanation for the failure; fails or declines to immediately take a second test the Company, Collector or Medical Review Officer has directed the employee to take because of questions raised by the test results of the first test; fails to cooperate in any part of the testing procedure (e.g. refuses to empty pockets when so directed by the Collector); and where the Medical Review Officer reports a verified and proven adulterated or substituted test result obtained from specimens provided by the employee.

VOLUNTARY TREATMENT

An employee with a substance abuse problem who desires to overcome such difficulty, and who voluntarily seeks help from management prior to being required to undergo drug testing will be referred to the Company’s Employee Assistance Program for assistance in overcoming the problem. An employee who seeks and undergoes treatment will not be subject to disciplinary action because of admitted substance abuse, unless such abuse affects the employee’s work performance.

The Company shall reimburse the employee’s out-of-pocket medical expenses for treatment if he/she (1) successfully completes the treatment recommended under the policy and (2) does not receive any positive test result for drug and/or alcohol testing mandated by this Policy and does not admit to recurring illegal drug use and/or alcohol misuse for a twelve (12) month period that commences upon the employee’s return to work. Such reimbursement shall not exceed $500.00 beyond any cost not covered by any health plan and no employee shall be entitled to more than one opportunity for reimbursement.

Reimbursement shall be contingent upon the employee’s submission of documentation that may be required by the Company to substantiate all expenses for which reimbursement is claimed.

Upon completion of the treatment for substance abuse problems, the employee may be reinstated to his/her former position, an equivalent position or any available position for which he or she is qualified, at the Company’s discretion. The Company does not guarantee that the employee’s former position or an equivalent position will be available upon completion of treatment.

FOLLOW-UP TESTING

1. An employee who returns to active employment status in any capacity at the Company after receiving a positive test result for drug and/or alcohol testing, who admits to illegal drug use or alcohol misuse, or successfully undergoes treatment as recommended by the Company’s Substance Abuse Professional shall undergo follow-up drug and alcohol testing as directed by the SAP.

2. The number and frequency of follow-up testing shall be determined by the Company and its Substance Abuse Professional. At minimum, follow-up testing shall consist of six (6) drug and alcohol tests during the first twelve (12) months following the employee’s return-to-duty at the Company in any capacity.

3. The Company’s Substance Abuse Professional may terminate follow-up testing at any time after the first six (6) tests have been administered if the SAP determines that such testing is no longer necessary because the employee has resolved his/her problem(s) associated with drug use and/or alcohol misuse.

CONFIDENTIALITY

The Company is aware of the importance to maintain employee privacy. The Company, however, also has a legal right to take reasonable steps to enforce this Policy and to take preventive action to ensure the safety of employees, clients, and the general public.

The Company shall administer this Policy and its substance abuse testing procedures as privately as practicable and permitted by applicable law. All results from substance abuse testing shall be treated as confidential information.

In order to protect the interests of all concerned, after it is determined that a drug and/or alcohol test shall be administered to an employee, a consent form releasing the results of the test to the Company, and its Medical Review Officer, shall be signed by the employee prior to undergoing the actual test. Failure to sign such a consent form shall result in disciplinary action, up to and including immediate termination for employees.

EFFECTIVE DATE

This Policy is effective upon distribution to employees. Each employee shall be furnished a copy of this Policy. The attached acknowledgment form shall be signed and returned to the Company.

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Substance_Policy_Jan06

Maui Varieties Limited

dba BFS, Inc., ACE Hardware Hawaii Inc, Dean’s Inc,

Maui Varieties Investments, Inc.

ACKNOWLEDGMENT OF SUBSTANCE ABUSE POLICY

PLEASE READ THIS DOCUMENT CAREFULLY

1. I ______, acknowledge receipt of the Substance Abuse Policy ("Policy") of Maui Varieties Limited ("Company").

2. I have read the Policy and understand its provisions. In consideration for my employment or continued employment with the Company, I agree to abide by all provisions of the policy.

3. I understand and agree that violations of any provision of the Policy may result in disciplinary action, up to and including immediate termination.