Load the file into XCS. The Ornament Backer is the base for the ornament. All other pieces will be glued onto this piece. If you wish, you may add additional text or images to the backer, but keep in mind that elements for other frames may cover it up.

Highlight the snowman, and then click the Release Compound button, this will make the small circles in the middle of the snowman disappear, resulting in what appears to be a complete silhouette. If you click on the snowman and drag it, you will see the three little circles from the vector left behind. You can delete those three circles, they are not needed.

Next, if you have not made a copy of the Ornament Frame, do that now. We will be adding some hills of snow and the snowman we just modified to this layer in the next step.

Next, create some ellipses of various sizes, these will be our hills of snow. Arrange and size them to create some hills. To make uniting the elements easier, ensure that the edges of the ellipses to not extend past the outside ring of the frame. Only the top edges that are inside of the inner ring will remain after uniting the elements.

Select all of the ellipses and the Ornament Frame, and then click the Unite button. This will combine all of the element into one element.

Next, drag the snowman over and place it inside the Ornament Frame. Ensure that snowman overlaps the top of the hill slightly, then select both the snowman and frame and unite them again. 

Before cutting the pieces, you can get an idea what the ornament will look like by layering them. 

Create another copy of the Ornament Frame. This will be the top piece. Select all three pieces and then click Horizontal Align Center, then Vertical Align Center. You may need to adjust the layer arrangement, making the Ornament Backer the bottom position, and the Ornament Frame that does not include the snowman the top layer. 

The XCS file includes the backer and frame for a 3" and 3.5" ornament. Also included are the final designs for the 3" ornament, and the snowman. The red layer is for cuts. The green layer is not needed, it is only reference text.
 

Away we go!

• Load your material.
• Focus the laser. Confirm your cut settings, as your laser may be different than mine.
• Map the cut area.
• Cut away!

If you use the provided file, be careful when removing the snowman piece as the arms are very thin.

Paint your ornament. Be as creative as you like. I am using Apple Barrel acrylic paint from a local hobby store. It is inexpensive and it works, a winning combination!

Assemble and glue up the pieces. Start with the backer, then add the snowman layer, then the outer frame. Touch up the layers with an acrylic pen, and you're done!