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| | Sport1.GIF | 
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| | EMPLOYEE
 HANDBOOK | 
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| | North American Edition | 
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| | Introduction | 
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| | To All GSE Employees: | 
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| | Every employee of Global Sports Equipment is important to the company's growth and success. | 
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| | You can take pride in the contribution you make as part of the GSE team, knowing that your efforts and those of your co-workers are all equally significant to achieving the goals we have set for ourselves. | 
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| | This handbook,� prepared by our Human Resources Department,� briefly outlines the general policies, programs, and benefits available to you as an employee of GSE.� The employee handbook is not meant to itemize every detail of every subject, but rather to answer commonly asked questions and provide helpful information to you.� Additional information is available in the Human Resource Department. | 
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| | Disclaimer | 
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| | Please read carefully: | 
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| | This handbook is provided to company employees to help them become acquainted with the company.� This handbook contains no promises or guarantees of any kind by the company regarding employment.� Further, nothing in this handbook may be construed as creating conditions for terms of employment, or as guaranteeing employment for any duration.� Employment with the company may be terminated at the will of either the employee or the company at any time, with our without cause, and with our without notice. | 
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| | No supervisor or representative of the company has any authority to make any promise regarding the duration, conditions, or terms of your employment which is different from or inconsistent with the foregoing.� Only the president of The Company may enter into employment contracts, in writing and signed by the president and employee, which may contain terms different or inconsistent with the foregoing. | 
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| | The contents of this handbook supersede any and all prior policies and procedures, guidelines or other policy statements made by company representatives. | 
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| | The Company may add to, delete, or otherwise modify this handbook or make exceptions to the policies and procedures contained in this handbook at any time, without notice, and at the sole discretion of GSE. | 
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| | GSE also reserves the exclusive right and authority to interpret, apply and enforce the terms of this handbook, and to determine whether a violation of any of the company's policies has occurred.� No other provision of this handbook may be used or interpreted to limit or contradict this disclaimer in any way. | 
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| | Acknowledgement | 
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| | I acknowledge that I have received a copy of the Global Sports Equipment Employee Handbook.� I further acknowledge that I have been given adequate opportunity to read the Handbook in its entirety and that I have, in fact, done so, including the preceding Disclaimer. | 
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| | I further understand and agree that the Global Sports Equipment� Employee Handbook is not part of an employment contract and I understand that my employment and compensation is terminable at the will of Global Sports Equipment, at any time, with or without cause and with or without notice. | 
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| | Signature
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| | Print Name
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| | Date | 
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| | GSE Background | 
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| | Since opening its first store in Provo, Utah in 1979, Global Sports Equipment has grown to become a leading supplier of every kind of sporting equipment known (and some unknown) to man.�� It is estimated that GSE equipment is in more than 30 million homes, locker rooms, and gyms. | 
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| | GSE sales quadrupled in 1983 following the opening of the Sydney, London, and Hong Kong stores. | 
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| | GSE has received the following awards: | 
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| | �1987 MVP (Most Valuable Products) award from SWEAT magazine | 
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| | �1993 Award of Distinction fromHEALTH & HAPPINESSmagazine | 
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| | �1994 Award of Customer Service Excellence from Australia's� Rugby King magazine | 
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| | In January 1991, GSE became a subsidiary of Worlwide Sports Alliance (WSA) of Madrid, Spain. | 
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| | Equal Employment Opportunity | 
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| | GSE believes that good employee relations are important not only to business success but also to your success.� To achieve good employee relations, GSE is dedicated to the following standards: | 
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| | GSE EEO Statement | 
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| | GSE does not discriminate on the basis of age, religion, sex, race, color, national origin, non-job related disability, or because someone is a disabled or Vietnam era veteran. | 
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| | GSE policy prohibits unlawful discrimination and extends equal employment opportunity (EEO) to all employees and job applicants on the basis of their individual merit and qualifications.� GSE complies with all relevant U.S. federal, state and local immigration laws and regulations, and employs only those people who are legally authorized to work.� In addition, GSE strives to provide safe and healthful working conditions, ensure employees the right to discuss freely with their supervisor any matter concerning their own or the Company's welfare, respects the individual rights of each employee and treats all employees with courtesy, dignity and consideration. | 
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| | Employment of Relatives | 
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| | Hiring the best qualified applicants available for all openings is the company's primary objective.� We do not discourage friends or relatives applying for positions within GSE.� However, in order to avoid potential improprieties and conflicts of interest, hiring ofclose personal friends within the same departmentor closely related areasis discouraged. Relatives of GSE employees may not work in a supervisory capacity or in the same department as immediate family members.� Relatives defined as family members are spouse, parent, child, brother, sister, mother-in-law, father-in-law, brother-in-law, sister-in-law, daughter-in-law, son-in-law, step-mother, step-father, step-son, step-daughter, grandparent, grandchild, guardian or domestic partners.� Employees and applicants should use good judgment in evaluating the application of this policy and should be able to justify any potential hiring decision. | 
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| | Employee Classifications | 
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| | Exempt Employee | 
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| | An exempt employee is an employee exempt from the overtime provisions of the Fair Labor Standards Act.� This exemption is based on certain characteristics, such as the type of work performed, amount of compensation and authority and can include officers of the company, managers, professional positions, etc.� Exempt employees are not paid for overtime. | 
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| | Non-Exempt Employee | 
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| | A� Non-exempt employee is covered by the provisions of the Fair Labor Standards Act.� Non-exempt employees may be salaried and therefore must submit semi-monthly time cards in order to be compensated for the overtime hours worked. Non-exempt employees are paid for time worked in excess of 40 hours per week at a rate of one and one-half ( 1 1/2) times their regular pay rate.� Paid Time Off hours, including holidays, in a workweek do not count as hours "worked" in the calculation of overtime pay. | 
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| | For more detailed information on Exempt/Non-Exempt status contact the Human Resource Department. | 
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| | Full Time Employee | 
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| | A Full Time employee is hired to work a shift of at� least 32 hours per week.� Full time employees are eligible for company benefits. | 
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| | Part-Time Employee | 
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| | A Part-Time employee is hired to work a shift� for less than 32 hours per week.� Part-time employees are not eligible for company benefits. | 
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| | Temporary Employee | 
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| | A Temporary� employee is hired for a specific job assignment or group of assignments for a specified period of time, usually less than six months. | 
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| | Interns | 
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| | An intern is an employee hired on a short term basis for a specific project while attending school. | 
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| | Employment Procedures and Records | 
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| | Employment Application | 
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| | The employment application is an important phase of the hiring procedure and becomes a part of your employee record.� All information submitted on the application form is subject to verification.� The Company reserves the right of immediate dismissal upon discovering any misrepresentations or significant omissions on an employee's application. | 
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| | Global Sports Equipment maintains a drug free environment and requires all new employees to successfully pass a pre-employment physical exam and drug screen analysis for substance abuse. | 
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| | Confidentiality | 
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| | Just as Global Sports Equipment expects you to keep certain Company information confidential, you can expect the Company to keep your employee records confidential. | 
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| | Employee medical records (medical history, results of physical exams and drug screening) are maintained in a confidential manner.� Personnel files are also confidential and will be maintained by the Human Resource Department.� Access to records is carefully controlled. | 
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| | Accordingly, the Company has adopted several policies to maintain the confidentiality of your employee records: | 
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| | �Only relevant job-related information is maintained on each employee. | 
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| | �Information regarding salary, job performance, and personal information such as birthdate, home address, emergency notification instructions, taxes, benefits, and education is held in strict confidence. | 
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| | �Information about employees will be given to outsiders only in two situations:� (1) pursuant to an order of a court of competent jurisdiction, (2) pursuant to a valid subpena or government agency request, (3) pursuant to advice of counsel representing Global Sports Equipment in legal proceedings, (4) under emergency circumstances to a person or agency pursuant to a showing of compelling circumstances affecting the health or safety of an individual. | 
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| | �Information about employees is used within the Company for bona fide business purposes only. | 
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| | �Much of the personal information concerning an employee, which the Company maintains, is available for inspection.� If you wish to review your employee personnel folder, contact the Human Resource Department to arrange a time to review the file. | 
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| | �The company will not release personnel files on any former employee except when required by law. | 
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| | Change of Status | 
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| | Please help us keep your records current by completing an Employee Action Form and submitting it to the Human Resource Department when you have any changes in your: | 
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| | �address | 
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| | �telephone number | 
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| | �marital or family status (i.e. births) | 
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| | �number of dependents | 
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| | �educational achievements, etc. | 
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| | This information is necessary for proper recording of tax data, payroll, and benefits. | 
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| | Promotions and Transfers | 
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