Company Memo 7/15/02

As you are all aware, WHERE CHYNAKATT WORKS is in the process of completing performance appraisals for all employees across North America. It was our intention to coincide these reviews with salary increases based on employee performance. Although a very difficult decision, salary increases will not take place on July 1, 2002. In the current uncertain economic condition facing all US companies, and the drive to shave costs from operations, this was an unavoidable conclusion. These factors are directly related to overall business conditions throughout WHERE CHYNAKATT WORKS and the US. It is our intention to review the situation over the next sixty-days and amend it as soon as it is prudent for us to do so.

It just keeps getting better.