FAIRNET, INC.

EMPLOYEE AND VOLUNTEER HANDBOOK AND POLICIES

Prepared July 15, 1997

Fairnet, Inc. prides itself on the position it occupies within the community of Fairbanks, Alaska. The effectiveness of management and the productivity of our employees determine how successfully of an organization we will be. We at Fairnet, Inc. believe that our employees are our most important asset. We operate on the assumption that if we are able to attract and retain a highly professional work force, we will provide the community with a highly valued community service. FairNet Mission is to "build and strengthen existing communities through shared and integrated information services."

This means we live to collaborate, and collaborate to live. We promote computer, and telecommunications literacy, and support access to electronic information for all people. As an employee of Fairnet, you are Fairnet in the eyes of the community, your actions are the actions of Fairnet. As the representatives of Fairnet, we have developed this policy manual to help assist you in your day to day routine and to provide you with a better understanding of your responsibilities and role as our employee.

Table of Contents

General Provisions

A. Purpose and Policy

Employment at Will

C.    Changes to Handbook

D.    Equal Employment Opportunity

E.     Sexual Harassment

F.     Discriminatory Harassment

II. Benefits

A. General

B. Profit Sharing Plan

C. Insurance

III. Work Policy

A. Decorum

B. Change of Status

C. Company Vehicle Policy

D. Dress Code

E. Equipment

F. Personnel Files

G. Illegal Substance/Alcohol/Drugs

H. Drug Testing Policy

I. Safety

IV. Hiring and Termination

A. Temporary Employees

B. Full -Time Employees

C. Resignation

D. False Information

V. Hours of Work

A. Work Week

B. Lunch Periods and Rest Breaks

C. Other Employment

D. Vacation

E. Holidays

F. Jury Duty and Military Service

G. Leave of Absence

H. Absenteeism and Sick Leave

I. Time Cards/Pay Periods

VI. Compensation

A. Temporary Hire

B. Salary Increases or Decreases

C. Overtime Compensation

VII. Employee Obligations

A. Honesty

B. Conflict of Interest

C. Use of Company Owned Equipment

D. Vendor Gratuities

E. Employee Conduct

I. General Provisions

         A. Purpose and Policy

This employee handbook is issued to establish a system of personnel rules for Fairnet, Inc. employees. All rules are subject to change. Matters covered include benefits, personnel rules, and other policies of general application to Fairnet, Inc. employees. This employee handbook is NOT A CONTRACT OF EMPLOYMENT. Only those employees with separate employment contracts have contractually guaranteed employment. All other employees are employed AT WILL. It is not the intent of this handbook to revise or overrule, amend, restrict or enlarge any provisions of written employment contracts between Fairnet, Inc. and any individual employee. All employees will be given a copy of this handbook and are expected to familiarize themselves with it. The management reserves the right to revise by addition, reduction, correction, deletion, or upgrading any part or all of the materials in this handbook.

                                B. Employment at Will

Both the employee and Fairnet, Inc. have the right to terminate employment at any time, with or without advance notice, and with or without cause. This is called "employment at Will". The fact that certain behavior or acts are described here as grounds for termination does not mean that Fairnet, Inc. limits its rights to terminate any employee for any reason.

All employees, serve at the pleasure of Fairnet, Inc.'s Executive Director. Fairnet, Inc.'s Executive Director services are at the pleasure of Fairnet, Inc.'s Board of Directors. The only employees whose employment is not "at will" are those who have entered into written employment contracts with Fairnet, Inc. signed by the Executive Director providing for another basis of employment.

                        C. Changes to Handbook

Any changes made in the materials now covered, or in those that may be covered in the future, will be brought to the immediate attention of all employees through any or all of the following:

                                                Employee meetings

                                                Memos

                                                Email Issued to the individuals

                                                Corrections in the employee handbook

Revisions to this handbook may be made without prior notice. Changes may be made in part or whole. Unless specified in such revisions, however, all remaining terms of this handbook shall remain in full force and effect.

This revision supersedes and replaces all previous personnel rules. Each revision to the handbook will be dated with the date on which notice of the revision is first given to employees, and this shall be considered the effective date of the change.

D. Equal Employment Opportunity

Fairnet, Inc. is an equal opportunity employer. No action  affecting the employment status of any employee or a prospective employee  of Fairnet, Inc., including appointment, promotion, demotion, suspension, or dismissal, may be taken or withheld on the basis of unlawful discrimination based upon race, color, religion, national origin, age, gender, marital status, change in marital status, physical disability, pregnancy, or parenthood.

E. Sexual Harassment

       

In order to maintain a professional environment for all employees, it is the policy of this company that any form of sexual harassment will not be tolerated in the work place.

                    There are three broadly defined areas that encompass sexual harassment:

1. Harassment that has a condition of employment (being hired, promoted, maintaining current position, etc.) as the objective or purpose.

2. Harassment that creates an intimidating, hostile, or offensive working environment.

3. Harassment of unwanted touching.

                                 Sexual harassment is defined more comprehensively as:

                                  

§ Unwelcome sexual advances, requests for sexual

         favors, and other verbal or physical conduct of a     

                                            sexual nature constitute sexual harassment 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 for

         employment affecting such individual; or (3) such

         conduct has the purpose or effect of unreasonably

         interfering with an individual's work performance or

         creating an intimidating, hostile, or offensive working

         environment.

 

Violations of this policy will result in disciplinary action against an offender, which may include termination. Sexual harassment is a form of discriminatory harassment further discussed in Section I. under F.

F. Discriminatory Harassment

Fairnet, Inc. will not condone, permit or tolerate any kind of harassment of employees or applicants for employment on the basis of gender, color, race, religion, national origin, age, disability, marital status, changes in marital status, pregnancy, or parenthood. Criticism of an employee's work habits or work performance is considered part of the evaluation process and is not considered harassment under the guidelines of this policy.

Persons who knowingly permit, engage in or instigate harassment will be subject to discipline including termination.

Discriminatory harassment is unwanted conduct or communication by a supervisor, co-worker, or non-employee which is based on the gender, color, race, religion, national origin, age, disability, marital status, changes in marital status, pregnancy, or parenthood of an individual and which adversely affects the employment relationship or working environment. This includes slurs, epithets, threats, derogatory comments, unwelcome jokes, teasing and other verbal or physical conduct.

    

Employment or applicants for employment who believe that they have been subjected to harassment should immediately contact the President or Manager, at least within 10 days of the alleged harassment. All employees are eligible to file a complaint under this rule. All reported incidents will be handled in a professional manner consistent with any appropriate discipline for the misconduct.

II. Benefits

A. General

              

Fairnet, Inc. provides benefits to employees it deems in the best interests of the organization but reserves the right to change benefits at any time.

B. 401k

Fairnet provides for an employee contribution 401k plan. Specific information on employee contributions and how the work may be acquired from the Executive Director.

III. Work Policy

A. Decorum

Fairnet, Inc. is a service organization and employees are expected to provide professional, courteous, and effective service to our clients at all times. Alcoholic beverages are not permitted on the premises or during work hours. Employees will act and dress in a professional, courteous and competent manner when on the job.

B. Change of Status

Employees shall complete a Change of Status form, available from the office Executive Director, for the following changes:

§ Change in marital status

§ Name change

§ Change of address

§ Change in dependents

§ Vacation and leave of absence

                            requests

                                   (see also separate section,

                                              Vacations)

                 

Additional forms notifying the insurance company and/or IRS may also be obtained from the office of the General Manager.

C. Company Vehicle Policy

Company car or car allowances may be granted to employees based on the nature of their work or the terms of their employment at the sole discretion of Fairnet, Inc. It is expected that employees will properly service and maintain the car through company approved servicing businesses.

                   Employees receiving a company car or car allowance may also receive a company gas card. This card is to be used for gasoline and oil purchases for the specified car only. All receipts for charges made on the company gas card shall be given to the General Manager. All receipts must include the name of the driver (a legible signature), license plate or vehicle number, and the date the purchase was made. Washing and cleaning of the vehicle is to be performed on a regular basis by the employee at his or her own expense.

                   Company vans are to be used only for the business of Fairnet, Inc. Personal use of a Company van is strictly prohibited and is grounds for discipline, including termination. The unauthorized “hiring out” of a Company van for moving purposes by any employee, whether for pay or not, is strictly prohibited and is grounds for discipline, including termination. Unauthorized and unnecessary deviations from planned driving routes will be considered as personal use of a Company van and will be disciplined accordingly.

D. Dress Code

                Good grooming is the key to a suitable dress code in our industry. Our customers have expectations about our cleanliness and appearance. As field representatives for Fairnet, Inc., employees represent the Company to our customers. We, therefore, expect our employees to uphold our exacting standards in all respects.

                     Each employee shall be neatly dressed and properly groomed. Beards and moustaches are acceptable but must be kept neatly trimmed at all times. Otherwise, employees are to be clean shaven. Hair length must conform to safety standards and be neat in appearance.

                     All clothes must be neat, in good repair, and appropriate for the employee’s position. Each employee is responsible for providing his or her own appropriate outdoor clothing and gear, including gloves.

                    The Company may elect to issue uniforms. If it does so, the employee will keep the uniform neat and pressed and wear it as a set. Upon separation for any reason, employees must turn in all company-issued uniforms.

E. Equipment

                  Every employee assigned to a move shall provide a tool box containing the required tools of the trade.

F. Personnel Files

                     Personnel files are the property of the Company and are treated confidentially. At the discretion of management, comments on employee’s work performance, whether positive or negative, will be placed in the employee’s personnel file. The Operations Manager maintains and/or has access to all personnel files. Employees may request and obtain access to their files by notifying the Operations Manager and will be allowed to review it in his presence during business hours.

G. Illegal Substances/Alcohol/Drugs

                      The welfare and success of this company is affected by the physical and psychological health of all its employees. The abuse of alcohol, drugs, and/or illegal substances poses a serious threat to both the company, its employees, and the general public. It is the responsibility of both the company and the employee to maintain a drug-free working environment. For that purpose, the company has adopted these policies:

                        

1. Any employee who unlawfully manufactures, distributes,

dispenses, possesses, or uses illegal drugs, or misuses legal drugs, at the work place, while on company business, or during working hours is subject to discipline including immediate termination.

             

              2.  Any employee under the influence of drugs, alcohol, or illegal      

                   substances which impairs judgement, performance or

                   behavior while on company business, will be subject to

                   discipline including immediate termination.

              3.  Employees taking medication, prescribed by a physician, that    

                   may affect their job performance, shall notify their immediate

                   supervisor.

4. Any employee charged with any crime involving illegal drugs is

subject to discipline including immediate termination.

5. Any employee charged with any crime involving illegal drugs,

may be subject to suspension or termination even if not

convicted.

6. The company has adopted a drug testing policy. All

employees should be familiar with the requirements of the drug testing policy.

                            Employees who need help with alcohol or drug problems are urged to seek assistance before the problem affects judgement, performance or behavior. Coverage for professional counseling and/or use of substance abuse treatment facilities is listed in your Health and Insurance Benefit Handbook. If you are aware of a problem affecting a co-worker, please contact the President, the General Manager, or your supervisor.

           

            H. Drug Testing Policy

                       Fairnet, Inc. has adopted the Federal Motor Carriers Safety Regulations, Subpart H: Controlled Substances Testing, Parts 391.81 through 391.123; 49 C.F.R. Part 40: Procedures for Transportation Workplace Drug Testing Programs, Parts 40.1 through 40.37. These regulations require drug testing of all drivers and driver applicants. Drivers will be tested under the following schedule.

1. For reasonable cause. When the Company believes that the

actions or appearance or conduct of an on-duty driver are

indicative of the use of a controlled substance, the Company

will require the driver to be tested.

                

2. Pre-employment. The Company will test all driver-applicants

as a pre-qualification condition of employment, unless the

applicant verifies that he or she has participated in a drug testing program meeting the requirements of the Subpart H

of the Motor Carriers Safety Regulations within the previous 30 days and either (1) was tested for controlled substance within the six months previous to the application, or (2) participated in the drug testing program for the twelve months previous to the application.

3. Random. The Company will conduct random testing of all of

      Its drivers as required by the federal regulations.

4.   Post-accident. The Company requires that all drivers        

      involved in a accident be tested as soon as possible, if the

      driver receives a citation for a moving traffic violation arising

      from the accident. An "accident" for the purposes of this

      requirement is an occurrence involving a commercial motor 

      vehicle operating on a public road which results in a (1)

      fatality; (2) bodily injury to a person who, as result of the

      injury, immediately receives medical treatment away from

      the accident; (3) one or more motor vehicles incurring

      disabling damage as a result of the accident, requiring the

      vehicle to be transported away from the scene by a tow

      truck or other vehicle. A driver who is seriously injured and

      cannot provide a specimen at the time of the accident is

      required to provide the necessary authorization for obtaining

      hospital reports and other documents that would indicate

      whether there were any controlled substances in his or her

      system.

     

                        A driver who refuses to be tested under the Company's drug testing policy shall not be permitted to operate a company vehicle and may be subject to discipline including termination. A refusal to take a required drug test will be treated as a positive test and the driver will be subject to all restrictions imposed by the federal regulations.

                        All testing will be conducted on urine samples, which shall be collected in accordance with the procedures required by 49 C.F.R. Part 40. Samples will be tested for the presence of controlled substances, as defined in the federal regulations. These include marijuana, cocaine, spirits, opiates, amphetamines, and phencyclidine (PCP).

                        The Company will notify a driver of the results of a drug test if the results are positive. The driver will also be notified of what controlled substance was identified in any positive test.

                        The Company will maintain the confidentiality of all testing conducted under this chapter, as required by federal regulations.

            I. Safety

                       It is the policy of the company to maintain a safe and healthy work environment for all employees. If you are injured on the job, report the injury to your supervisor immediately, or within 24 hours, and complete all necessary insurance forms before leaving work at the end of your shift. All injuries, regardless of their severity, must be reported immediately to your supervisor.

                        All vehicular accidents shall be immediately reported to the proper authority (state or local police, etc.) and to management. Applicable accident and injury reports must be completed in a timely manner.

IV. Hiring and Termination

           

A. Temporary Employees

                   During seasonal peak periods of business, the Company may employ casual employees who will be designated as "temporary". Temporary employees are generally employed for less than thirty (30) days, but may be employed up to one hundred twenty (120) days at the discretion of management. Temporary employees shall not be eligible for participation in any fringe benefit program and cannot attain seniority.

B. Full -Time Employees

                   REGULAR FULL-TIME EMPLOYEES ARE AT WILL AND MAY BE TERMINATED WITH OR WITHOUT CAUSE. Termination does not reflect discredit on the service of an employee as the decision to terminate is made solely in Fairnet, Inc.'s best interest.

                        Newly hired and/or rehired employees, with the exception of temporary employees, are not eligible for Company benefits for a period of one hundred twenty (120) days continuous service. Employees are also excluded from the seniority roster during the first one hundred twenty (120) days of their employment. This one hundred twenty day period may also be utilized for closely observing the employee's work, for securing the most effective adjustment of the employee to his or her position. This time period of close observation, however, does not alter the at-will employment relationship between all employees and the Company.

C. Resignation

                      An employee may resign by presenting his or her resignation to the department head. Fairnet, Inc. requests that it be given at least ten work days prior notice. Tender of resignation immediately prior to vacation shall not be considered ten work days notice.

D. False Information

                    If an applicant is hired and it is subsequently determined that the individual concealed or misrepresented information, in written or oral form, pertinent to selection, or falsified or misrepresented information provided by the applicant in written or oral form, the employee shall be terminated or suspended pending further investigation in the sole discretion of the Company.

V. Hours of Work

A. Work Week

                    The designated workweek shall begin at 12:01 a.m. on Monday and end at 12:00 midnight on the following Sunday. Work shall be made available on the basis of seniority and the required classification. Forty hours of attendance on duty will constitute the minimum workweek for full-time employees with due allowance for authorized holidays and vacation days. However, nothing in this rule should be construed as a guarantee or limitation of the number of hours to be worked per week.

B. Lunch Periods and Rest Breaks

               All employees are scheduled for a lunch period of not less than thirty minutes nor more than one hour at approximately the mid-point of their shift. The time allocated to the lunch period shall be directed by the Dispatcher and shall be considered unpaid.

                         Employees are entitled to a rest period at approximately halfway through the first portion of their shift and again at the mid-point of the second portion of their shift. Such rest periods shall not exceed fifteen minutes each.

C. Other Employment

                     No employee shall engage in any other employment, either public, private or self employment during the hours the employee is scheduled to work for Fairnet, Inc. The use of the Company vehicles and/or equipment to engage in other employment, with or without pay, is strictly prohibited and will result in discipline, including termination. No employee shall engage in employment during off duty hours which conflicts with the interest of Fairnet, Inc. or adversely affects the employee's availability and usefulness to Fairnet, Inc. 

D. Vacation

                     Regular full-time employees shall earn paid vacation hours as shown on the schedule below. Vacation accrual is based on hours worked. An employment year consists of 2,080 hours of work, excluding overtime. For purposes of this definition, holiday pay and vacation pay shall be counted as hours of work. Employees who take an approved leave of absence (unpaid) may have their employment year adjusted to exclude the leave of absence. Maximum vacation accrual for employees shall be earned in conjunction with years of employment as follows:

                           For example, if you were hired on February 1, 1992, assuming continuous full-time employment, you would not be eligible for paid vacation leave during your first year of service. You would become eligible for ten working days of vacation each year on February 1, 1993, February 1, 1994, and February 1, 1995. Beginning on February 1, 1996, you would become eligible for fifteen working days of vacation each year.

           

                            A working day is eight hours.

                            Fairnet, Inc. has adopted a policy of paying employees their vacation pay as soon as it accrues. Therefore, on the first day of after the anniversary of an employee's date of hire, as adjusted for any extended leave of time, the Company will pay the employee the amount of vacation time accumulated under the above chart. The employee will then not be paid for any day which the employee does not work during the year whether by reason of sickness or vacation.

                            Employees are nevertheless required to schedule all anticipated absences from work in advance. In case of conflict, leave to take a vacation will be granted on a seniority basis. Employees who call in "sick" for an anticipated absence rather than schedule a day off in advance will be subject to discipline, including termination.

E. Holidays

                      All regular full-time employees will be paid for holidays in accordance with their normal schedule. Employees must work both the normally scheduled workday immediately preceding the holiday and the normally scheduled workday immediately following the holiday in order to be eligible for pay the day of the holiday. When the holiday falls on a Saturday, the prior Friday will be observed. When the holiday falls on a Sunday, the Monday after will be observed.

                            The Company will observe the following holidays:

     1. New Year's Day                  5. Labor Day

     2. President's Day                   6. Veteran's Day

     3. Memorial Day                      7. Thanksgiving Day

     4. Independence Day              8. Christmas Day

                          Employees who must work on a holiday shall be paid for the holiday (8 hours if a full-time employee) in addition to their regular pay for that day. Additional time worked during a Holiday week will be considered overtime after the employee has physically worked over forty (40) hours that week, or eight hours in any one day.

F. Jury Duty and Military Service

                      Employees required to serve on jury duty or perform annual activity duty training as a member of a military service reserve program shall promptly be notify their supervisor.

G. Leave of Absence

                      A leave of absence is time off without pay. All requests for leaves of absence are subject to advance approval by your supervisor.

   

                         There will be no holiday pay or accrual of vacation time during a leave of absence.

                            Leaves of absence up to a total of twelve work weeks per any twelve month period will be granted for the following:

1. Because of the birth of a son or daughter of the employee and in order to care for such son or daughter;

2.   Because of the placement of a son or daughter with the

      employee for adoption or foster care;

3.   In order to care for the employee's spouse, son, daughter, or

                     parent has a serious health condition.

4. Because of a serious health condition that makes the 

employee unable to perform the functions of the employee's

position.

                              Requests for leaves of absence for any other reason will be considered on a case-by-case basis by the Company.

H. Absenteeism and Sick Leave

                        Fairnet, Inc. cannot tolerate unexcused or excessive absenteeism. An employee who is unable to perform his or her duties due to illness shall be required to promptly notify his or her supervisor. Sick leave shall be without pay. Salaried employees also will not receive pay for any sick day. Employees may not collect vacation pay for a sick day or any other absence not scheduled as a vacation day in advance. When illness exceeds one day, the employee must notify the supervisor daily unless another arrangement has been made and approved by the supervisor. A doctor's excuse may be required after three (3) consecutive days of absence or from any employee who, in the Company's opinion, has made excessive use of sick leave. The Company may also require permission from an employee's physician prior to allowing an employee to return to work after the employee misses work due to illness or injury. Employees should request, in advance, a leave of absence for all absences which may be anticipated in advance.

                           Excessive absenteeism or lateness may result in discipline, including termination.

I. Time Cards/Pay Periods

                         There are two pay periods per month. The first pay period will be from the 1st through the 15th day of the month and the second pay period will be from the 16th through the last day of the month. Payday for the first pay period of each month shall be on the 25th day of the same month and payday for the second pay period of each month will be on the 10th day of the following month. If a payday falls on a Sunday or a successive holiday, the following work day will be payday.

                             The Company will make reasonable efforts to make final pay available to separating employees on the first workday following the separation. In all cases, the final pay will be available for pick-up no later than the third working day following the date of separation.

                              Employees paid on an hourly basis will receive daily time-cards. The employees are responsible for recording on their time-cards their arrival and departing time, as well as their lunch hours for each day. Time-cards should be signed and given to their supervisor at the end of each shift.

                              The signing of a time-card is considered legal proof of hours worked. Employees shall be responsible for keeping accurate records of hours worked. Employees who record time not worked shall be subject to immediate termination.

VI. Compensation

A. Temporary Hire

                        Fairnet, Inc. may hire temporary employees at a pay rate below that established for comparable full-time positions.

B. Salary Increases or Decreases

                        Fairnet, Inc. believes that employees should be compensated based on their individual knowledge, technical skills, and productivity. As a consequence, the Company has established a pay range for each classification that we use. The Company reserves the right to alter these pay ranges at any time. The Manager shall place employees within these ranges at his discretion and based on his assessment of their capabilities. At the discretion of the Manager, an employee may be given a pay increase. Such increases are not automatic, but rather will be given to those employees who deserve them, based upon their individual efforts and contributions. Fairnet, Inc. may, solely in the Company's interest, decrease wages as well.

C. Overtime Compensation

                         Employees not serving in executive, administrative, or professional positions, as defined by the Fair Labor Standards Act (FLSA) or are not serving in an executive, administrative, or professional position, as an outside salesman, or on a straight commission basis as set forth in the Alaska Wage and Hour Act, are eligible to receive overtime compensation. Fairnet, Inc. has determined that the only employees exempt from the overtime pay requirements are the President, General Managers, and the Operation Managers. Other employees are eligible to receive overtime compensation.

                              Eligible employees will receive overtime compensation for all hours worked in excess of eight (8) in one workday or in excess of forty (40) in one workweek. The overtime rate shall be computed at a rate of one and one-half times the employee's regular hourly rate.

                              No employee may work overtime without prior written approval from the Manager. Additional time worked during a holiday week will be considered overtime after the employee has physically worked over forty (40) hours that week, or eight hours in any one day.

VIII. Employee Obligations

A. Honesty

                          Employees shall be discreet and honest. Any acts of duplication, alteration, falsification of documents, disclosure of information without authorization, theft of property or monies, or dishonesty, or other acts of a serious nature which are prejudicial to the company shall result in discipline including immediate termination.

B. Conflict of Interest

                          Any activity within or outside the company which could adversely affect the company should be immediately reported to the employee's immediate supervisor. This includes but is not limited to:

1. Any activity or situation which might interfere with the

employee's responsibility to serve the company to the best of his/her ability.

2. Any activity of situation that might be considered in

conflict with the company's best interest.

                               Illegal and unethical activity shall not be condoned, and shall result in discipline including termination. Similarly, even the appearance of unethical activity must be avoided.

C. Use of Company Owned Equipment

                           Employees of Fairnet, Inc. are not to use company property or equipment for personal monetary gain. This includes, but is not limited to: copy machines, computer equipment, company vehicles, or tools used in the shop or off the premises. Use of company property or equipment in violation of this Section may result in discipline, including termination.

D. Vendor Gratuities

                           On occasion some of the vendors, contractors or clients that we do business with provide tokens of thanks or appreciation to employees of Fairnet, Inc. In all circumstances the employee should discourage this activity.

 

                                 Understanding that at times the vendor, contractor or client may be very insistent, the employee should thank them for their thoughtfulness and inform their supervisor of the gratuity. The supervisor may then require the gratuities be turned over to Fairnet, Inc. Fairnet, Inc.'s management will then make a fair and equitable decision as to the disbursement of such gifts which may include a company-wide drawing or simply sharing the gift with the other employees. Any employees found to be accepting tokens of thanks from any vendor, contractor or client without notifying management will be subject to discipline including termination.

E. Employee Conduct

                              Fairnet, Inc. is committed to excellence in everything we do. While striving for total quality, there are certain specific behaviors which will not be tolerated. Employees are expected to adhere to the requirement of this handbook. Employees should avoid:

   

§ Use of profanity;

§ Sleeping on the job;

§ Use of threatening language;

§ Rudeness to customers, clients or fellow

                                                   employees;

§ Dress code violations;

§ Working in an unsafe manner;

§ Abusing sick leave privileges;

§ Tardiness or absenteeism;

§ Sexual Harassment;

§ Insubordination; and

§ Unauthorized use of company vehicles or

                                                   equipment.

                              While the company, in its sole discretion, may elect among alternative sanctions for violations, including written reprimand, suspension, or terminations, the following will likely result in immediate termination:

§ A physical attack;

§ Theft;

§ Falsifying time sheets;

§ Sexual harassment by making sexual

                                                   Advances or unwanted touching;

§ Disclosure of confidential material; or

§ Possession or consumption of alcohol or

                                                   Illegal substances in the work place.

Nothing in this section shall be deemed to alter the at-will employment relationship between all employees and the company.


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