Effective Date: 1/1/2007

7.01 Employee Conduct and Work Rules

To ensure orderly operations and provide the best possible work environment, there are certain standards of behavior that Grubstake expects its employees to observe in order to protect the interests and safety of all employees and the Company.

It is not possible to list all the forms of behavior that are considered unacceptable in the workplace. The following are examples of infractions of rules of conduct that may result in disciplinary action, up to and including termination of employment:

* Theft or inappropriate removal or possession of property
* Falsification of timekeeping records
* Working under the influence of alcohol or illegal drugs
* Possession, distribution, sale, transfer, or use of alcohol or illegal drugs in the workplace, while on duty, or while operating employer-owned vehicles or equipment
* Fighting or threatening violence in the workplace
* Boisterous or disruptive activity in the workplace
* Negligence or improper conduct leading to damage of employer-owned or customer-owned property
* Insubordination or other disrespectful conduct
* Violation of safety or health rules
* Smoking in prohibited areas
* Sexual or other unlawful or unwelcome harassment
* Possession of dangerous or unauthorized materials, such as explosives or firearms, in the workplace
* Excessive absenteeism or any absence without notice
* Unauthorized absence from work station during the workday
* Unauthorized use of telephones, mail system, computer systems, or other employer-owned equipment
* Unauthorized disclosure of business "secrets" or confidential information
* Violation of personnel policies
* Unsatisfactory performance or conduct

Employment with Grubstake is at the mutual consent of Grubstake and the employee, and either party may terminate that relationship at any time, with or without cause, and with or without advance notice.

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