XYZ COMPANY TO DATE, Inc.

EMPLOYEE HANDBOOK

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 XYZ COMPANY TO DATE, Inc.

Welcome to XYZ Company To Date, Inc.

XYZ Company To Date, Inc. of Arlington, Texas is the originator and developer of
the XYZ. Founded in 1976 on an original product idea, XYZ Manufacturing has
grown from a small, two-man garage operation to an international corporation.
The basis of this phenomenal growth is in a product that provides its user with
everything sought for in a writing surface .... function, fashion, and comfort.
These three qualities combined, make the XYZ a valuable addition to any home
or office.

Today, we are a growing corporation whose success is attributed to dedication,

professionalism, and good employees. We believe that our employees are our
company's most valuable assets .

We wish you success and good luck with your career at XYZ Company To Date.

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TABLE OF CONTENTS
INTRODUCTION 5
AT - WILL STATEMENT AND DISCLAIMER 5
EMPLOYMENT POLICIES 6
Equal Opportunity 6
Definitions of Employment Status 6
Introductory Period for New Employees 7
Personnel Records 7
WAGE AND SALARY POLICIES 8
General Policy 8
Overtime Pay 8
Hours of Work 8
Lunch and Rest Periods 8
Paydays 9
Employment of Minors 9
EMPLOYEE BENEFITS AND SERVICES 10
Group Insurance 10
401(k) Profit Sharing Plan 10
Health Club Membership 10
Employee Purchase of Company Products 11
Workers' Compensation 11
State Unemployment Insurance (SUI) 11
Social Security (FICA) 11
TIME OFF AND EXCUSED ABSENCES 12
Vacations 12
Holidays 12
Sick/Personal Time 13
Bereavement Leave 13
Jury Duty 13
Time Off Without Pay 13
Family and Medical Leave 14
EMPLOYEE DEVELOPMENT 15
Performance Appraisals 15
Tuition Reimbursement 15
COMPANY RULES AND STANDARDS OF CONDUCT 16
Disciplinary Actions 16
Relationship Between Employees 17
Sexual Harassment 17
Other Unlawful Harassment 19
Smoking 19
Conflict of Interest 20
Using the Company Telephone 20
Attendance Standards 20

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Absence Without Notice 20
Appearance 20
Theft of Company Property 21
TERMINATION 21
COMMUNICATIONS 21
Resolving Employee Complaints 21
Non-union Employee Relations 22
SUBSTANCE ABUSE AND DRUG TESTING POLICY 22
Statement of Purpose and Scope 22
Cause for Testing 22
Testing Procedure 23
Refusal to be Tested 23
Treatment Programs 23
EMPLOYEE SAFETY AND HEALTH 23
Accidents 24
First Aid 24
General Emergencies 24
CHANGES IN POLICY 24

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 INTRODUCTION

This handbook has been prepared to introduce you to our company and acquaint
you with the policies, rules, pay, and benefits that apply to your employment
here. Please read this handbook carefully and keep it handy for future reference.
One of your first responsibilities is to become familiar with its contents and to
review it with your supervisor if you have any questions.

AT-WILL STATEMENT AND DISCLAIMER

THE POLICIES AND PROCEDURES SET FORTH IN THIS EMPLOYEE

HANDBOOK ARE NOT A BINDING EMPLOYMENT CONTRACT.
EMPLOYMENT WITH XYZ COMPANY TO DATE "AT WILL", MEANING THAT
EMPLOYMENT MAY BE TERMINATED AT ANY TIME WITH OR WITHOUT
NOTICE, FOR ANY REASON OR NO REASON, BY EITHER CREATIVE
MANUFACTURING OR THE EMPLOYEE.

THIS HANDBOOK IS NOT A CONTRACT GUARANTEEING EMPLOYMENT

FOR ANY SPECIFIC PERIOD OF TIME. WHILE WE CERTAINLY HOPE THAT
YOUR EMPLOYMENT RELATIONSHIP WITH XYZ COMPANY TO DATE WILL
BE SUCCESSFUL AND LONG TERM, EITHER XYZ COMPANY TO DATE OR
THE EMPLOYEE MAY END THIS RELATIONSHIP AT ANY TIME, WITH OR
WITHOUT CAUSE, NOTICE OR REASON. NO MANAGER, SUPERVISOR OR
REPRESENTATIVE OTHER THAN XYZ COMPANY TO DATE PRESIDENT OR
CHIEF OPERATING OFFICER HAS THE AUTHORITY TO ENTER INTO ANY
AGREEMENT GUARANTEEING EMPLOYMENT FOR ANY SPECIFIC PERIOD
OF TIME OR TO MAKE ANY WRITTEN OR ORAL PROMISES, AGREEMENTS
OR COMMITMENTS CONTRARY TO THIS POLICY. FURTHER, ANY
EMPLOYMENT AGREEMENT ENTERED INTO BY THE PRESIDENT OR
CHIEF OPERATING OFFICER WILL NOT BE ENFORCEABLE UNLESS IT IS
IN WRITING.

THIS HANDBOOK REPLACES AND SUPERCEDES ALL EARLIER

XYZ COMPANY TO DATE PERSONNEL PRACTICES, POLICIES AND
GUIDELINES.

Revised 4/24/2000

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 EMPLOYMENT POLICIES

Equal Opportunity

XYZ Company To Date does not discriminate on the basis of race, color, natural
origin, sex, religion, age or disability- in- employment. Furthermore, XYZ
Company will make all reasonable accommodations necessary to facilitate the
employment of disabled persons.

XYZ Company maintains a policy of non-discrimination with all employees and

applicants for employment. All aspects of employment are governed on the basis
of merit, competence, and qualifications and will not be influenced in any manner
by race, color, religion, sex, age, natural origin, or disability. Any employee who
has a disability that affects his or her job performance should notify his or her
supervisor so that provisions may be made to accommodate the disability.
Furthermore, any employee having knowledge of or observing a condition which
impedes access by disabled persons or who observe a disabled person in need
of assistance on company property, should notify their supervisor, and take
whatever steps reasonably necessary to accommodate the disabled individual.

All decisions made with respect to recruiting, hiring, and promoting for all job
classifications will be made solely on the basis of individual qualifications related
to the requirements of the position. Likewise, the administration of all other
personnel matters such as compensation, benefits, transfers, education, and
social/recreation programs will be free from any discriminatory practices.

Definitions of Employment Status

The following terms will be used to describe each classification of employment

and employment status:

Flat Salary
Employees whose positions meet specific tests established by the Fair
Labor Standard Act (FLSA) and are exempt from overtime pay
requirements.

Hourly
Employees whose positions do not meet FLSA exemptions tests and are
paid one and one-half times their regular rate of pay for hours worked in
excess of forty per week.

Full Time
Employees who work an average of at least 32 hours per week on a
regular basis. Full Time employees are eligible for all employee benefits
when applicable service requirements are met.

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 Part Time
Employees who work an average of fewer than 32 hours per week on a
regular basis. Part Time employees are not eligible for employee benefits.

Introductory.
Employees with 90 or fewer days of service. They are not eligible for
employee benefits.

Regular
Employees who have completed the 90-day introductory period. They are
employed for an indefinite length of time.

All employees, regardless of classification, status, or length of service, are

expected to meet and maintain the Company standards for job performance and
behavior.

Introductory Period for New Employees

The Introductory period for new employees lasts for 90 days from date of hire.
During that time, you have your first opportunity to evaluate XYZ Company to
Date as a place to work, and we have our first opportunity to evaluate you as an
employee.

Upon satisfactory completion of the introductory period, you will become a

Regular Employee.

Personnel Records

Important events in your history with the Company will be recorded and kept in
your personnel file. Employment applications, performance reviews, change of
status records, commendations, and educational attainments are examples of
records maintained.

You may receive a copy of any record initiated by the Company regarding your
employment. Also, your personnel file is available for your inspection in the
Human Resources Department. Contact your supervisor to make an
appointment.

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 WAGE AND SALARY POLICIES

General Policy

We strive to maintain rates of pay at XYZ Company to Date that are comparable
to those of other companies in our industry or in the Tarrant County Area with
similar kinds of work.

Our wage and salary plan classifies each position on the basis of:
· Knowledge and ability requirements.
· Variety and scope of responsibilities.
· Physical and mental demands.

Overtime Pay

Hourly Employees will be paid time and one-half their regular rate of pay for
authorized hours worked in excess of forty (40) in one week. Overtime pay
applies only to hours actually worked in the same work week. Vacation days, sick
days and holidays are not considered days worked and therefore are not
calculated in overtime pay.

All overtime work by Hourly Employees must be authorized in advance by the

responsible supervisor.

Flat Salary Employees may work overtime at their discretion if required to meet
specific work needs, however no additional pay will be paid. Excessive overtime
requirements are discouraged and should be discussed with the responsible
supervisor in order to avoid future occurrences.

Hours of Work

For most factory employees our normal workweek consists of forty (40) hours,
working eight (8) hours per day, 7:00 a.m. to 4:00 p.m., Thursday through
Wednesday. For most office employees our normal workweek consists of forty
(40) hours, working eight (8) hours per day, 8:00 a.m. to 5:00 p.m., Thursday
through Wednesday. At various times, second shift or overtime hours may be
required.

Lunch and Rest Periods

The lunch period for most employees is one hour. Hourly employees are
scheduled two, fifteen minute breaks per day, one in the morning and one in the
afternoon.

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All of these periods are important for your rest and well- being. Please use them
for their intended purpose.

Paydays

Paydays are on Friday of each week. If Friday falls on a holiday, you will be paid
on the preceding workday. Payment on Friday will include all hours worked
through the proceeding Wednesday. Paychecks will be handed out at 4:00 pm
on Fridays. Do not ask for paychecks earlier. The only exception to this policy
occurs when an employee leaves for vacation on a day earlier than the normal
payday, then a request for an early pay check will be considered if made well in
advance. Checks will not be given to another individual without written
authorization from the employee. Forms for authorization for another person to
pick up a paycheck are available from your supervisor.

Employment of Minors

As a general rule, regular employees of the company must be 18 years of age

or older. Occasionally, we hire students or others who are 16 or 17 years old,
but this is done only under special conditions and must be approved in advance
by the Human Resource Department.

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 EMPLOYEE BENEFITS AND SERVICES

Group Insurance

The Company pays one half the cost.of group medical and life insurance for all
Regular Full Time Employees. Eligible employees choosing to participate in the
program will be asked to pay their half of the individual insurance premium
through payroll deduction. Insurance coverage for dependents is also available
but must be paid for by the employee. Coverage becomes effective on the 1 st of
the month following the month in which the employee becomes eligible.

The Company health insurance benefits are optional for all eligible employees,
however, we strongly recommend that you take advantage of this valuable
benefit unless you are adequately covered under some other health insurance
plan. If you refuse coverage, you cannot enter into the program without
demonstrating insurability.

401(k) Profit Sharing Plan

The 401 (k) Profit Sharing Plan is a valuable benefit program offered to you as an
employee of XYZ Company to Date, Inc. It is designed to help you put money
aside for a financially secure retirement.

Participation in the Plan is easy. You contribute a percentage of your salary to

the Plan each payday through convenient payroll deduction and the Company
also makes a contribution to your account equal to 50% of every dollar
contributed by you up to 6% of your wages. Contributions are then invested in
the Plan's investment choices that you select. Your contributions, employer
contributions and all future earnings on your account are not subject to federal
income tax until you take them out of the Plan. This tax deferral gives your
retirement savings the opportunity to grow under the most favorable terms
possible.

Joining the Plan is one of the most important steps you'll make toward a
financially secure retirement. We urge everyone to take full advantage of what
the XYZ Company to Date, Inc. 401 (k) Profit Sharing Plan has to offer.

Health Club Membership

XYZ Company to Date encourages employees to be healthy and physically fit. In

order to promote this, the Company will pay the initiation fee and one half of the
monthly dues for each Regular Full Time Employee and their family for a
membership in the Maverick Athletic Club at 1919 West Pioneer Parkway. We
hope you will use the Club often and enjoy the benefits of exercise, good health
and well being. To obtain your membership, contact the Human Resources
Department.

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Employee Purchase of Company Products

Employees may purchase, and are encouraged to do so, any of the products
manufactured by XYZ Company to Date. The price for these products is our
wholesale price less 20 %. Contact the Human Resources department to arrange
for purchase or to answer any questions regarding price or availability.

Workers' Compensation

XYZ Company to Date carries worker's compensation insurance to protect you

from damages because of work-related illness or injury. The plan contains certain
benefits and limits. Complete and official details are contained in plan documents
available in the Human Resources Department.

State Unemployment Insurance (SUI)

XYZ Company to Date contributes to the State Unemployment Fund. No

contribution is made directly to you. The purpose of this insurance is to protect
you from a total loss of wages when you are unemployed though no fault of your
own and assuming you are available, able, and actively seeking other
employment. Since the amount paid by the company into this fund is affected by
our claims experience rating, all applications for unemployment insurance
payments are carefully monitored.

Social Security (FICA)

This federal program provides a base retirement income and other benefits for all
eligible participants. It is financed both by employees and employers. The
amount of required contribution depends upon a formula prescribed by law and is
subject to change.

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 TIME OFF AND EXCUSED ABSENCES

Vacations

Our paid vacation plan is designed to provide you with the opportunity to rest and
get away from the everyday work routine.

Vacation periods are earned as follows:

1) Five (5) working days, or one week after one (1) full year of
continuous, Full Time service.
2) Ten (10) working days, or two weeks after two (2) full years of
continuous, Full Time service.
3) Fifteen (15) working days, or three weeks after five (5) full years of
continuous, Full Time service.

Vacations are not cumulative and must be taken during the twelve (12) months
immediately following your anniversary date. No extra compensation will be paid
in lieu of vacation, except upon termination.

In order to satisfy your preferences as well as meet the staffing needs of the
department, discuss your vacation plans well in advance with your supervisor
and complete a Vacation Request form as required. No requests will be
considered if made less than one week or five (5) business days in advance. If
you are absent due to an illness, emergency, or personal matter and you have
already used the five (5) days allowed for that purpose, you will not be allowed to
substitute your vacation time.

Employees should attempt to take vacation time in one-week increments to

minimize the disruption to their department. Vacation time cannot be paid in less
than one (1) day increments.

Holidays

Regular Full Time Employees are eligible for six (6) paid holidays in each calendar Year. They are
as follows:
New Year's Day January 1st
Memorial Day Last Monday of May
th
Independence Day July 4
Labor Day 1 st Monday of September
Thanksgiving Day 4th Thursday of November
Christmas Day December 25th

When a holiday falls on Sunday, the following Monday will be observed as the
holiday. If the holiday falls on Saturday, the proceeding Friday will be observed
as the holiday. In addition, XYZ Company to Date will be closed on the day after
Thanksgiving and also on the day after Christmas when Christmas falls on

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Monday, Tuesday, Wednesday or Thursday. This is not an additional paid
holiday, however, vacation time may be used if payment for the time is desired.
We know that many of our employees travel to spend time with friends or loved
ones on these holidays. This way they can enjoy the full holiday, then return the
next day.

Sick/Personal Time

Regular Full Time Employees are eligible for up to five (5) days of paid leave that
must be used in the case of an illness, emergency, or other personal matters. If
you are absent from work due to an illness, emergency, or personal matter you
are required to contact your immediate supervisor no later than two hours after
your scheduled start time. Failure to contact your supervisor by that time will
result in an unexcused absence. An unexcused absence will result in you not
being paid for that day and your available Sick/Personal Time will be reduced by
one day. Employees who abuse this benefit are subject to additional disciplinary
action. XYZ Company to Date, Inc. will reward employees for their good
attendance by paying them for any unused time upon the anniversary date of
their employment. This is not an earned benefit and no amount will be paid upon
termination of employment. Sick/Personal Time will not be paid in less than one
(1) hour increments. In the case of Department Managers, Sick/Personal Time
will not be paid in less than one (1) day increments.

Bereavement Leave

In the event of death in your immediate family. Regular Full Time Employees
may have up to three (3) consecutive workdays off, with pay, if necessary to
handle family affairs and attend the funeral. "Immediate family" is defined as:
father, mother, brother, sister, spouse, child, grandparents, and grandchildren.

Jury Duty

In order that you may serve on a jury without loss of earnings, Regular Full Time
Employees will be paid for up to three (3) working days in any calendar year for
actual days of jury service. Additional time will be considered a Leave of Absence
Without Pay. Contact your supervisor promptly after receiving notification to
appear for jury service.

Time off without Pay

There are occasional requests for time off without pay for personal reasons not
specifically authorized in the Company Policy Manual. While we recognize that
certain necessities may arise, all such requests have to be approved by the
appropriate supervisor who must first consider the staffing needs of the
company. Each employee performs a unique and valuable function that in most
cases cannot be replaced on a short-term basis, therefore, the absent

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employee's workusually goes undone. This affects the productivity and moral of
other employees whose work often depends on the work of that employee. No
such requests for time off without pay will be considered unless all earned
vacation time has been used. If no vacation time is available, then the request
will be considered upon the circumstances stated above.

Family and Medical Leave

Leave of absence without pay will be granted to Regular Full Time Employees
who have been employed for at least twelve (12) months in instances qualifying
under the Family and Medical Leave Act of 1993 (FMLA). Eligible employees
may apply for up to twelve (12) work weeks (480 hours) of leave during any
twelve (12) month period following the commencement of an employee's first
FMLA leave. All employees applying for leave under the FMLA must provide a
thirty (30) calendar day advance written notice to their supervisor before family
leave is to begin if the need for the leave is foreseeable. If this is not possible,
then written notice must be given as soon as possible. You must contact the
Human Services Department to complete necessary requirements. You will be
required to substitute all unused paid vacation or sick leave as part of the FMLA
leave. You will be required to complete the proper forms requesting leave and to
make arrangements to pay any health and life insurance premiums if these are
currently paid through payroll deduction. You will be required to provide proof of
medical necessity and you must report periodically on the status of your leave
and your intention to return to work. Failure to meet these requirements could
result in delay, denial of leave, or termination of employment. Upon qualifying for
leave under the FMLA you have the right to restoration to the same or an
equivalent job with equivalent pay and benefits upon return from leave.

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 EMPLOYEE DEVELOPMENT

Performance Appraisals

You will receive a performance appraisal'from your supervisor at the end of your
90-day introductory period. Thereafter,. appraisals will be scheduled on an annual
basis. The performance appraisal is a vehicle for your supervisor to discuss your
general performance. It will cover your strength as well as ways in which you may
be able to improve. It is also an opportunity for you to discuss your job concerns
and career development goals.

Tuition Reimbursement

We would like to encourage you to improve your education and skills. Under
special circumstances, employees may be reimbursed for the tuition cost of
educational courses taken outside normal working hours. Courses must be
directly related to improvement of job performance in order to be eligible for
reimbursement and must be approved in advance by the Company.
Reimbursement will occur only after completion of an approved course resulting
in a course grade of C or better.
Should you desire to participate in such a program, consult the Human
Resources Department for details of the policy and for a Tuition Reimbursement
form.

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 COMPANY RULES AND STANDARDS OF CONDUCT

Disciplinary Actions

Groups of people who are working - together for any purpose require certain
guidelines pertaining to their conduct and relationships. It is important that all of
us be aware of our responsibilities to the company and to fellow employees.

It is our intention to take a constructive approach in this area as well as ensure

that actions that interfere with the Company operations or an employee's job are
not tolerated.

Not conforming to these standards may result in one of the following forms of
disciplinary actions:

verbal warning
written warning
suspension
discharge

In arriving at a proper course of action, the seriousness of the infraction, past

record of the employee, and circumstances surrounding the matter will be
considered.

Although it is impossible to identify every possible violation of these standards of

conduct, the following is partial list of infractions that will result in disciplinary
action:

1) Falsifying information including information given on applications for

employment.

2) Revealing confidential information of any kind, including discussion

of one's wages with other employees .

3) Theft, fraud, embezzlement, or industrial espionage.

4) Using company equipment, material, time, or information for

unauthorized purposes or personal use.

5) Abusing, destroying, or wasting company property or equipment.

6) Carrying concealed weapons or explosives or violating criminal

laws on company premises.

7) Violation of the drug abuse policy.

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 8) Immoral or indecent conduct.

9) Sexual harassment or other unlawful harassment.

10) Willful or repeated violation of safety rules.

11) Excessive absenteeism or tardiness.

12) Performance that does not consistently meet the requirements of

the position.

Relationship Between Employees

Employees are encouraged to exercise common politeness and courtesy in all

their relationships with each other as well as with management personnel. A
cooperative spirit with your co-workers will help you to perform your job duties in
a proper, efficient, and workman like manner.

No employee will be permitted to curse, insult, or defame another employee in

any manner at any time in or about Company property.

Any fighting on Company property will be cause for dismissal.

Sexual Harassment

It is the policy of XYZ Company to Date to prohibit sexual harassment of its

employees in any form by any person.

Sexual harassment is defined as unwelcome sexual advances, requests for

sexual favors, and other verbal and physical conduct of a sexual nature when:

1) Submission to such conduct is made, either explicitly or implicitly, a

term or condition of an individual's employment;

2) Submission to or rejection of such conduct by an individual is used

as the basis of employment decisions affecting such individuals; or

3) Such conduct has the purpose of or the effect of unreasonably

interfering with an individual's work performance or creating an
intimidating, hostile or offensive working environment.

Sexual harassment can occur in many forms, including but not limited to,
unwelcome physical conduct, verbal abuse, leering, gestures, insulting and/or
degrading comments, and more subtle advances and pressure inviting sexual
activity.

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However, a single incident of a sexual advance or even a request for a sexual
favor is not harassment unless it is backed up by a work-related threat. Thus for
example, a single request for a date does not constitute sexual harassment.
Furthermore, repeated requests for social interaction have been found not to
constitute sexual harassment unless it appears the invitee is being discriminated
against because of his or her refusal.

Sexual harassment of any type is strictly prohibited and will not be tolerated. If
you feel you are being sexually harassed you should take the following steps in
resolving the situation:

1) Tell the harasser you find his or her conduct offensive and insist
that it stop.

2) If the problem continues or if the first violation, in your opinion, so

merits, report the matter to your supervisor, unless, of course, the
harasser is your supervisor, in which case you should report the matter to
your supervisor's supervisor or to any corporate officer of the Company .

Any employee who reports or complains in good faith of sexual harassment will
be protected against retaliation or reprisal for making the report or complaint, no
matter who the alleged harasser is. The report or complaint will be investigated
promptly and as discreetly as possible. All employees having information related
to a complaint of sexual harassment are expected to cooperate fully in any
investigation of such complaint. Employees cooperating in such an investigation
will also be protected against retaliation or reprisal. All reasonable steps will be
taken to protect the rights of all parties involved.

Employees should not attempt to handle matters of sexual harassment on their

own or on behalf of other employees. Instead, if employees observe or are
otherwise made aware of sexual harassment of any person, in anyway
connected with this Company, including employees, vendors, or clients, the
employees should immediately report such activity to their supervisor or the
supervisor's supervisor or any corporate officer of the Company. Employees
should not remain silent, even if requested to do so by the victim of such
harassment, as the employee's silence further contributes to the continuance of
the unlawful conduct and prevents the Company from taking corrective action.
Disciplinary action will be taken against any employee found to be in violation of
this policy. Such disciplinary action will be determined by the nature of the
wrongful act or acts and may result in the immediate dismissal of the offending
employee. Likewise, disciplinary action will be taken against any employee found
to have made a willfully or intentionally false accusation of sexual harassment.

Employees witnessing or acquiring knowledge of an event or claim of sexual

harassment should report the incident as described above. Thereafter, the
employee is instructed not to discuss the allegation or information with anyone

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else outside or inside the Company, unless specifically instructed to do so.
Supervisors, acquiring information about an event or claim of sexual harassment,
after reporting the event to a corporate officer of the Company, should refrain
from discussing the matter further with anyone outside or inside the Company
except as may be required in the conduct of official company business. The
provisions of this paragraph are intended to protect the rights and reputation of
the accused sexual harasser until such time as an investigation of claim or
incident is complete. Communication of malicious gossip or allegations that later
prove to be false could subject the communicator to legal liability. However,
nothing in this policy should be interpreted as prohibiting an employee from
disclosing information to their individual attorney, medical provider or to the
appropriate governmental authorities with a legitimate need to know.

Other Unlawful Harassment

Harassment based upon an individual's race, age, religion, color, national origin
or disability, which has the purpose of or the effect of unreasonably interfering
with an individual's work performance or creating an intimidating, hostile or
offensive working environment, is also prohibited under various state and federal
anti-discrimination laws. XYZ Company to Date prohibits such conduct and the
policies and procedures outlined above for sexual harassment apply equally to all
types of unlawful harassment.

Under Title VII of the Civil Rights Act of 1964, as amended, the Age
Discrimination in Employment Act, the Equal Pay Act, the Americans With
Disabilities Act and the Texas Commission on Human Rights Act, any employee
who believes that he or she has been discriminated against or harassed because
of his or her race, sex, age, religion, national origin or disability may file a charge
of discrimination with either the Equal Employment Opportunity Commission
(EEOC) or the Texas Commission on Human Rights (TCHR). Reports to the
EEOC must be made within 300 days from the date of the discriminatory
employment action. Reports to the TCHR must be made within 180 days from
the date of the discriminatory employment action. The addresses and phone
numbers for these agencies may be found in most local phone directories under
U.S. Government and State Government. XYZ Company to Date encourages
any employee, who believes that he or she is a victim of discrimination, to speak
with his or her supervisor or any corporate officer of the Company before the
employee files a charge of discrimination with the EEOC or TCHR. However,
exhaustion of internal company remedies is not required before the employee
reports his or her concerns to either of those agencies.

Smoking

In response to the preference of our employees and the health and fire codes of
the City of Arlington, we have designated the work area of XYZ Company to Date

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as a smoke and tobacco free environment. We ask those employees who wish to
use tobacco to do so on their lunch or break periods outside of the building.

Conflict of Interest

Due to the demands and competitive nature of our business, we have a special
concern with regards to potential conflict of interest that arises mostly through
additional employment (moonlighting). While we recognize your right to engage
in other activities outside of your job here, we do expect Full Time Employees to
devote their best efforts to our affairs. The primary guideline is one of full
disclosure. We ask that you discuss all possible conflicts of interest with your
supervisor.

Using the Company Telephone

Telephone facilities are required to conduct our business during working hours.
Circumstances come up occasionally where it is necessary to make or receive
personal telephone calls during business hours but they should be limited in both
length and frequency and only conducted while on lunch or break periods.
Personal telephone calls for employees will be posted on the Message board for
pickup during lunch or break periods.

Attendance Standards

XYZ Company to Date feels that attendance and punctuality give an accurate
indication of an employee's quality of workmanship and interest in the affairs of
the Company. Top production is necessary to keep all departments operating
smoothly. It is essential, therefore, that your attendance be regular and punctual.
If you must be absent or late for work due to illness or other reasons, we ask that
you notify your supervisor before work. The company phone number is (817)465-
1452. When reporting your absence, also give your expected return date.

Absence Without Notice

After three consecutive days of absence without notice to the company an

employee will be presumed to have voluntarily quit and will be removed from the
payroll. Any employee returning after such a period will be considered a new
employee applicant and if hired will be considered an Introductory Employee for
the purpose of Company benefits.

Appearance

All our employees are asked to dress in a professional, business-like, and well-
groomed manner suitable for the type of work they perform. We frequently have
guests who visit us and it is customary to provide these guests with a tour of our

20
facilities. We expect our employees to put their "best foot forward" in order to
create a favorable impression.

Theft of Company Property

Theft of company property, even the slightest instance, will result in immediate
termination and possible prosecution to the greatest extent possible by law.

TERMINATION

Employees whose employment has terminated for any reason whatsoever will
receive their final pay on the next forthcoming payday. They will also receive
compensation for any unused vacation time.

Employees whose employment has terminated and they later return to

employment at XYZ Company to Date must meet all of the applicable service
requirements in order to be eligible for employee benefits.

COMMUNICATIONS

Resolving Employee Complaints

Under normal conditions, if you have a job-related problem, question, or

complaint, you should discuss it with your supervisor. The simplest, quickest, and
most satisfactory solution often will be reached at this level.

If the discussion with your supervisor does not answer your question or resolve
the matter to your satisfaction within a reasonable amount of time, you may then
present your case to the next higher level of responsible management.

At this point, if the matter is still not resolved, you may present your case in
writing to the President who will investigate it and make the final decision.

Difficulties in using this complaint procedure should be brought to attention of the

Human Resources Department.

Non-union Employee Relations

There are no unions at XYZ Company to Date. We believe that our employee
relations programs and policies make unions unnecessary, and we intend to
make every legal effort to keep it that way. XYZ Company to Date was built from
the ground up by a hard working group of employees who designed policies and
programs in a sincere effort to provide fair treatment and a good working
environment for all. We strive to continue that philosophy today.

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 SUBSTANCE ABUSE AND DRUG TESTING POLICY

Statement of Purpose and Scope

Drug and alcohol abuse in the work place is a major concern. We believe that by
reducing drug and alcohol abuse, we will improve the safety, health, and
productivity of employees. Our Company is committed to providing a safe,
healthy, productive, and lawful working environment. The use of alcohol, illegal
drugs and/or controlled substances increases the potential for, among other
things, accidents, absenteeism, unsatisfactory work performance, poor morale,
damage to the Company's reputation, and may affect employee eligibility for
worker's compensation or other health insurance benefits .

The use, possession, or distribution of any illegal drug and/or controlled

substance is strictly prohibited while on any Company premise. Violators of this
policy are subject to discharge.

Employees found to be under the influence of alcohol or illegal drugs while on

any Company premise or while acting-as a representative of the Company while
off premise are subject to discharge. This will be determined by the Company
Testing Procedure.

Employees undergoing prescribed medical treatment with any substance that

might adversely affect his/her job performance or endanger the safety of others is
required to report this treatment to his/her immediate supervisor.

Cause for Testing

All employees directly involved in an on-the-job accident or incident that requires

a physician's attention will be required to be tested.

Employees who have the smell of alcohol on their breath or who exhibit
questionable behavior or where there is reasonable and probable cause to
suspect that an employee's behavior is influenced by either alcohol or drugs as
observed by a Company representative may be requested to be tested.

Where the Company has been informed that an alcohol or drug problem exists
within the Company concerning any employee or group of employees and there
is reasonable and probable cause for suspicion, the employee or employees may
be required to be tested.

Testing Procedure

Any Company representative who requests an employee to be tested will first

contact the employee giving the reason for the reasonable suspicion and after

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exploring the circumstances of the case, the employee will be escorted and
driven to the designated facility for testing.

Tests that may be required of the employee may include a breathalyzer,

urinalysis and/or blood test. If the result of the test is positive, an alternative
method may be used by the testing facility to confirm the result. The cost of the
test will be paid by the Company.

The employee may be returned to work or suspended until the test results are
known. The Company representative will make arrangements to ensure that the
employee is safely returned to the work place or his/her residence, which ever is
appropriate based upon management discretion.

Refusal to be Tested

Each employee is expected to cooperate and consent to a drug test when

requested as a condition of continued employment with the Company. Refusal to
consent to a drug test when requested by the Company is cause for discharge.

Treatment Programs

Drug treatment programs are available through public and private health care
facilities in our area. However, we do not sponsor or endorse any specific
program. Affected employees are encouraged to seek assistance. The group
health insurance offered to employees provides limited coverage for expenses
related to drug treatment programs. See your supervisor or refer to the plan
description for details.

EMPLOYEE SAFETY AND HEALTH

We make every effort to provide safe working conditions for our employees. We
observe the safety laws of the governmental bodies within whose jurisdictions we
operate. No one will knowingly be required to work in any unsafe manner. Safety
is every employee's responsibility. Therefore, all employees are requested to
point out potential hazards and do everything possible to keep the company a
safe place to work.

Accidents

If an injury occurs on the job, no matter how slight, report it immediately to your
supervisor or department head. Failure to report an injury promptly could affect
the worker's compensation insurance carrier's responsibility to pay medical
expenses.

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First Aid

A first aid kit is located in the production supervisor's office .It contains standard
supplies of band-aids, methiolate, burn ointment, antiseptic spray, gauze,
adhesive tape, eye wash, triangular bandages, gauze pads, and aspirin.
If a first aid situation exists and you are not certain how to handle it, contact your
supervisor immediately.

General Emergencies

Fire is an ever-present hazard, especially where electrical equipment is

concerned. Familiarize yourself with the fire extinguisher locations and the
building exits. Every employee should know where the extinguishers are located
and how to operate them effectively.

CHANGES IN POLICY

The policies contained in this employee handbook may be changed when, in the
opinion of management, circumstances require it. While it is our intention to
provide you with advance notice of any changes, it may not always be possible.
Therefore, don't consider this to be'. a fixed contract. Keep in close
communications with your supervisor to be sure you are up to date and
recognize that changes in policy are the management's prerogative. This
handbook was last revised April 24, 2000.

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 RECORD OF RECEIPT OF EMPLOYEE HANDBOOK

I,_________________________________________ , ACKNOWLEDGE
RECEIVING THE EMPLOYEE POLICY HANDBOOK. I CLEARLY
UNDERSTAND THAT THIS POLICY HANDBOOK DOES NOT CREATE A
CONTRACT FOR EMPLOYMENT WITH XYZ COMPANY TO DATE, AND
THAT, XYZ COMPANY TO DATE MAY, CHANGE OR MODIFY THE
POLICIES AND PROCEDURES FOUND IN THIS HANDBOOK AT ANYTIME.

___________________________________ __________
EMPLOYEE SIGNATURE DATE

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