Edward Charles Jones - Page 5

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               During 1996, petitioner moved to Texas.  That same year,               
          Techmatics facilitated a change in the way petitioner was paid.             
          To save overhead expenses, they requested that petitioner begin             
          submitting time cards instead of invoices.  Petitioner received             
          an offer letter for “a part-time position as a Principal                    
          Engineer” from W.S. Szczypinski, executive vice president of                
          Techmatics, dated October 11, 1996.  The letter stated in part:             
          “As a non-exempt employee you may work no longer than 40 hours              
          per week without prior written authorization.”  The letter                  
          further stated:  “As a part-time employee you may be eligible for           
          medical/life and dental benefits as outlined on the enclosed                
          benefits summary.  The 401(k) savings plan is also available to             
          you.  You will be paid through our payroll department on the 10th           
          and 25th of each month.”                                                    
               Petitioner agreed to this new arrangement and signed what              
          appeared to be a standard form employment agreement with                    
          Techmatics (the agreement).3  The purpose of the agreement was              
          stated as follows:                                                          

               This Agreement sets forth certain acts during the employment           
               relationship or following its termination that would be                
               inconsistent with obligations of the Employee arising out of           
               that relationship and with the position of trust and                   
               confidence in which the Employee is placed as a result of              
               the relationship.  The Company places a high degree of trust           

               3    The employment agreement does not reflect a signature             
          of anyone from Techmatics.                                                  

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