XYZ CORPORATION

EMPLOYEE AND SUBCONTRACTOR SUBSTANCE ABUSE POLICY

XYZ Corporation has a strong commitment to provide a safe workplace for its employees
and other persons working or visiting on jobsites. In order to assist in maintaining a safe
working environment and to protect company property, this Policy concerning substance
abuse is established.

A violation of this policy will subject the offending employee to denial of entry to XYZs
premises or any jobsites XYZ has contracted. Reinstatement of access privilege will be
granted only upon receipt of evidence that the employee has successfully passed a drug
screen within 30 days of the request or has successfully completed a drug and
rehabilitation program since testing positive.

The refusal by an employee to sign a consent form ( as described in Section VI ), or

submit to any test, search or inspection required by this policy constitutes failure to
comply and will result in revocation of the persons access privilege.

The failure of an employee to comply with the provisions of this policy constitutes
cause for termination.

SECTION I - POLICY STATEMENT

The use, possession, concealment, transportation, promotion or sale of the following

substances is STRICTLY PROHIBITED on XYZ premises including all property
owned, operated, leased by or under the control of XYZ. Additionally, any Subcontractor
or contract employee whose body system contains a detectable amount of substance in
any of the following categories is prohibited from XYZ premises.

Illegal Drugs
Controlled Substances
Look- a - Like - Drugs
Designer Drugs
Synthetic Drugs
Unauthorized Prescription Drugs
Prescription Drugs not used for their Prescribed Purpose
Alcohol
Drug paraphernalia and similar items used for substance abuse are likewise prohibited
from XYZ premises or any jobsites under contract.

SUBCONTRACTOR SUBSTANCE ABUSE POLICY

An illegal drug is any substance which an individual may not sell, possess, use or
distribute under federal or governing state law. XYZ, through its Medical Department,
reserves the right to make the final determination on any question concerning substances
that fall within the meaning of an illegal drug as used in this policy.

Subcontractors shall submit a copy of their policy and program to XYZs supervisor of
Contracts. Such policy must provide for drug testing for employees and must meet the
minimum standards as set forth in Section II below. XYZ reserves the right to withhold
solicitation of bids or to deny entry to XYZ premises or any jobsites that XYZ has
contracted to any vendor or subcontractor who fails to present a written policy that meets
XYZs standards, or who fails to administer an acceptable policy.

SECTION II - TESTING

A. DEFINITIONS

For the purpose of this policy:

1. Testing means the analysis of urine, blood, hair, saliva, tissue or any other
biological specimens of the human body. Normally, drug testing, as used
herein, specifically means the analysis of urine and /or blood. However, at
times circumstances may warrant additional testing.

2. Chain of Custody means that combination of procedures and documentation

which provide a faithful and accurate written record of the custody of a
biological specimen from time of initial collection to final disposition.

3. Witnessed collection means the presence during the voided process of

another person whose positioning is discreet but sufficiently present to
minimize attempts at substitution or contamination of a specimen.

4. Negative test result means a laboratory conclusion that the presence of a drug
was not detected in a specimen.

5. Presumptive positive result means a laboratory conclusion that a specimen

was found to contain the presence of a drug based on one or more analytical
 procedures which did not include gas chromatography/mass spectrometry
(GC/MS).

6. Confirmed positive result means a laboratory conclusion that a specimen was

found to contain the presence of a drug based on two or more analytical
procedures which did include gas chromsatography/mass spectrometry
(GC/MS).

B. LABORATORY AND SAMPLING STANDARDS

The following laboratory standards apply:

1. Subcontractors will be responsible for assuring that substitute or contaminated

samples are not submitted up to extent of witnessed collection of the specimen.

2. Chain of Custody protection will be afforded to specimens collected from

current and prospective employees.

3. The selected laboratory must be specialized in drug testing, meet all licensing
requirements, and be staffed by a full time director, at least one certified
toxicologist, and certified technicians.

4. The laboratory must be equipped with state-of-the-art instrumentation capable

of performing modern toxicological analysis including enzyme immunoassay
or radioimmuoassay, a gas chromatography/mass spectrometry (GC/MS).

5. The laboratory must be capable of providing fully supported case

documentation and a qualified expert witness for the presentation of technical
testimony at administrative and judicial proceedings.

6. The laboratory must routinely observe quality assurance protocols which

include the use of blind samples, preferably by participation in testing
programs sponsored by the College of American Pathologist (CAP) or the
National Institute of Drug Abuse (NIDA).

7. The laboratory must be able to verbally report results of negative tests within
48 hours of receipt of specimens and confirmed positive tests within 3 working
days. Written reports must be able to be delivered within 5 working days of
verbally reported results.

8. The laboratory must be able to retain in protected storage any specimens that
may be required at a later time. All positive specimens must be maintained a
minimum of six months.
 9. The laboratory must be capable of reliably and accurately detecting at least the
following classes of drugs or their metabolites. Subcontractors should establish
detection levels no greater than those specified.

Subcontractor Substance Abuse Policy

Amphetamines 1000 ng/ml

Barbiturates
Secobarbital 200 ng/ml
Others 1000 to 3000 ng/ml
Benzodiazephines 300 ng/ml
Cannabinoids 20 ng/ml
Cocaine 300 ng/ml
Methadone 300 ng/ml
Methaqualone 750 ng/ml
Opiates 300 ng/ml
Phencyclidine 25 ng/ml
Ethanol .2% by volume

10. The specimens of applicants and current employees will be tested using an
enzyme immunoassay ( such as EMIT ) and/or a radioimmunoassay. In this
testing scheme, a positive finding is called a presumptive positive. All
presumptive positives will be further tested using GC/MS. In this testing
scheme, a positive finding is called a confirmed positive.

11. A blood alcohol test is a considered positive ( for the purpose of this policy ) if
the alcohol level is confirmed to be at or above .02% by volume. This test
must be run by a laboratory qualified to perform blood analysis work.

C. CONFIDENTIALITY

When a subcontractor conducts drug testing of its employees for the purpose of
establishing eligibility to enter XYZ premises or a jobsites XYZ has contracted
with, such drug testing results which are positive will not be disclosed to XYZ.
XYZ will require, however, that subcontractors certify that each employee
assigned to work on XYZ premises or a jobsites contracted with XYZ has passed a
drug test that meets with the standards of this policy. Subcontractor must maintain
records of drug test which are subject to audit by XYZ (See Section IV and VI).

The results of the drug tests performed for reasonable suspicion or

accident/incident investigations as outlined below must be disclosed to XYZs
 Safety Director. Strict procedures will be maintained to ensure the confidentiality
of test results in order to protect the privacy needs of tested persons (See Section
VI).

D. TESTING SITUATIONS

1. Subcontractors will conduct drug testing in these situations:

a) Before a subcontractors employee may enter a jobsites for the first

time.
b) At least annually for continuously employed workers.

c) Upon reasonable suspicion by the subcontractor or XYZ that a

subcontractor employee on jobsites is under the influence of or has
consumed any substance or item prohibited by this policy.

d) When designated by the XYZ Safety Director, immediately following

any incident which results in recordable bodily injury as defined by
OSHA, or damage to XYZ or contractor-owned property. (Note: drug
testing may also be required by XYZ following a near miss incident. A
near miss incident is any incident which, if it had proceeded to a
reasonable possible and more serious level of development, would have
had the potential for personnel injuries, property damage, or serious
liability claims).

2. Subcontractor will assume all costs associated with testing with the exception
of any special testing done by XYZ.

E. EXCEPTIONS

The following exceptions may be typically but not necessarily granted at the
discretion of the XYZ Safety Director:

1. Subcontractors and employees who are contracted or hired on short notice may
be permitted to begin work onsite pending receipt of results of pre-access drug
testing. This permission will not extend beyond seven consecutive calendar
days from the first date after work starts by subcontractor or employee. Any
person working under this provision must be removed from the work site
immediately upon receipt of a positive test result, or at the end of the seven
calendar days if test results have not been reported.

This provision is to allow work to begin on emergency or short notice

situations only. Testing must be done as soon as reasonably feasible (within 2-
 3 days) and results must be available within the seven calendar days allotted.
This provision covers only employees needed for initial staffing and does not
extend to those hired with sufficient time for pre-access testing (2-3 days after
job begins).

2. Subcontractors or employees whose need for site access is infrequent or whose

presence poses a minimal safety risk may be exempted from pre-access drug
testing.

F. VALIDITY PERIOD

A pre-access drug test must have been administered within 90 days immediately
preceding access. This requirement may be waived by XYZs Safety Director for
persons who are regaining access after an absence of not more than 90 days.

XYZ will recognize a drug test conducted of an employee while that employee
worked for a different employer provided that (1) The test is conducted within the
90 day period required by this policy; (2)The laboratory and sampling procedures
meet the standards set forth in this policy. XYZ prefers that the testing
requirements be verified by an independent agency such as the Contractors Safety
Council.

A continuously employed contract worker or employee must be drug tested at least

once a year with no more than 24 hours notice prior to testing. Any of the various
situations that require testing (pre-access, accident, etc.) will satisfy this
requirement.

SECTION III - SEARCHES AND INSPECTIONS

XYZ reserves the right at all times on its premises to conduct unannounced drug and
alcohol screens, searches and inspections of employees and contract employees including
but not limited to their effects, lockers, baggage, tool boxes, clothing and vehicles. The
purpose of such screens, searches and inspections is to ensure compliance with this
policy.

XYZ regards drug testing to be in the nature of a search justified or grounds of human
safety and protection of assets. XYZ reserves the right to require that analysis of the
collected specimens be performed by a laboratory selected by XYZ.

The central goal of this policy is to provide a safe and efficient working environment for
all persons on XYZs premises or jobsites. Cooperation is vitally important to the
achievement of this important goal.