The Human Resource (HR) Department at Lukas Machine Inc. invests much time and effort to develop and manage a comprehensive benefits program for our employees. Our ability to motivate and retain talented employees is dependant in part on our ability and committment to reward them above industry standard.

Vacation, Sick, Holiday and Overtime Compensation Policy

Vacation

Vacation is earned at the rate of eighty (80) hours per year after each year of continuous service and is accrued at each employee's yearly anniversary . Full-time employees with service of less than one (1) year may take up to forty (40) hours of vacation after completing nine (9) months of continuous service. Employees with continuous service of two (2) years or more will be paid for any vacation not taken in the previous year.

Payment for Unused Vacation Upon Separation from the Company:

A regular, full-time employee who leaves the company regardless of cause will be paid at their current salary rate for all unused vacation credit if employment has continued past the 90 day probation period. Vacation credit is accrued at 6.67 hours per month.

Holiday:

Holiday pay will be paid on all Lukas-approved holidays only after ninety (90) days of continuous full-time employment.

Sick Leave:

A regular, full-time employee who has been continuously in the service of the company for one (1) year or more is entitled to forty (40) hours of sick leave annually. All regular full-time employees with two (2) years or more of continuous service will have the option of being paid for any unused sick leave not taken at anniversary date thereafter at the end of each year. Recognizing the concern for being paid for an illness lasting for more than five (5) days, eligible employees will also have the option of carrying over sick leave up to one hundred and twenty (120) hours.

Payment for Unused Sick Leave Upon Separation from the Company:

A regular full-time employee who leaves the company regardless of cause will be paid at their current salary rate for all unused sick leave credits, if employment has continued beyond the 90 day probation period. Sick leave is accrued at 3.33 hours per month.

Company Acknowledged Holidays -- 2007

May 28	Memorial Day
July 4	Independance Day
September 3	Labor Day
November 22 & 23	Thanksgiving
December 25 - 31	Christmas Holiday

Please note that you must be a full time employee with 90 days continuous service to receive paid holiday benefits

2007 Medical Benefit Brief Summary

Lukas Machine Inc. makes available to each of its employees Medical and Dental benefits. We currently subscribe to a preferred provider plan, which includes medical, dental, and a prescription drug card plan.

You are eligible to join the plan the first of the month after you have completed 30 days of employment. For example if you hire in on the 15th of April you will be eligible to participate in the plan on the 1st of June.

The company will pay 100% of premiums for the employee and approximately 85% for your dependent coverage

401 (k) Profit Sharing Plan and Trust

Retirement has long been a fundamental goal of all working Americans. For some, it means an opportunity to travel. For others, it may be a time for volunteer work - or for starting a new business from a lifelong hobby. Whatever your dreams may be, one thing is certain - you'll want a retirement free from financial worries. That's why now is the time to start planning for the days after you stop working.

Many people put off saving for their retirement because they believe they can't afford it. But living a longer and more active life requires more money than Social Security benefits alone may provide. That's why at Lukas we offer you the opportunity to invest for your retirement with a 401 (k) plan. It's a convenient, affordable way to build your retirement nest egg.

MFS Investment Management administers our 401 (k) plan, which allows you to put aside money from your paycheck and invest it for your future. The government created the plan with special tax advantages to encourage people to invest for retirement. With a 401(k) you can afford to invest more because you contribute to the plan with pre-tax dollars. You decide how much money you want to contribute to the plan, up to 15% currently once you are eligible to participate. Each pay period, the amount you select is deducted from your paycheck - before taxes are taken out - and invested in one or more of the investments you select from the plan. Lukas matches your contributions at a set percentage, from the profits earned by the company.

Life Insurance Plan

After eligiblility requirements are fulfilled, Lukas provides each employee with $25,000 of life insurance.