SUBSTANCE ABUSE POLICY
Drugs Don't Work in NRI!

PURPOSE OF POLICY

Native Resources International, Inc. (NRI) believes that it is important to promote a drug free community, to maintain safe, healthy, and efficient operations, and to protect the safety and security of the employees, facilities, and property of NRI. Drugs or alcohol may pose serious risks to the user and all those who work with the user. In addition, the use, possession, sale, transfer, manufacture, distribution, and dispensation of alcohol or illegal drugs in the workplace pose unacceptable risks to the maintenance of a safe and healthy workplace and to the security of NRI employees, facilities, and property. Substance abuse, while at work or otherwise, seriously endangers the safety of employees, as well as the general public, and creates a variety of workplace problems, including increased injuries on the job, increased absenteeism, increased health care and benefit costs, increased theft, decreased \morale, decreased productivity, and a decline in the quality of products and services provided by NRI. For all of those reasons, NRI has established this Substance Abuse Policy. This Policy [and acknowledgment] is not intended to and does not constitute a contract of employment with NRI. [Your employment with NRI is “at will,” and either you or NRI may terminate your employment with NRI at any time, and for any or no reason. No supervisor or manager has any authority to make any statements or representations to you that change or conflict with the at-will status of your employment with NRI, or that change or conflict with any of the provisions of this Policy. The at-will status of your employment with NRI can be modified only by an express written agreement signed by the president of Native Resources International, Inc.] This Policy supersedes and revokes all previous practices, procedures, policies, and other statements of NRI, whether written or oral, that modify, supplement, or conflict with the Policy. This Policy may be amended at any time.

SCOPE OF POLICY

This Policy applies to all NRI employees, including management, administration, and temporary employees, and to all applicants who have received conditional offers of employment with NRI. This Policy also applies to all employees of NRI contractors who are performing services on NRI property, or who are operating NRI equipment, machinery, or vehicles. Such employees of contractors are considered “employees” within the meaning of this Policy. Depending upon their specific job duties, certain employees may be subject to additional requirements under client requirements or state or federal regulations, including additional restrictions on drug or alcohol use, and additional provisions for drug and/or alcohol testing.

DISSEMINATION OF POLICY

A. All employees will receive a copy of this Policy, and will be required to sign an appropriate acknowledgment and receipt.

B. All applicants who have received conditional offers of employment with NRI will be required to read this Policy and will be required to sign an appropriate acknowledgment and receipt.

DEFINITIONS OF TERMS

A. Illegal Drugs

"Illegal drugs"; means any controlled substance listed in schedules I through V of the federal Controlled Substances Act (21 U.S.C. § 812), medication, or other chemical substance that (1) is not legally obtainable; or (2) is legally obtainable, but is not legally obtained, is not being used legally, or is not being used for the purpose(s) for which it was prescribed or intended by the manufacturer. Thus, “illegal drugs” may include even over-the-counter medications, if they are not being used for the purpose(s) for which they were intended by the manufacturer.

B. Legal Drugs

"Legal Drugs"; means prescribed or over-the-counter drugs that are legally obtained by the employee and used for the purpose(s) for which they were intended by the manufacturer.

C. NRI Property

"NRI property" and "NRI equipment, machinery, and vehicles"; means all property, equipment, machinery, and vehicles owned, leased, rented, or used by NRI.

D. On Duty

"On duty"; means all working hours, as well as meal periods and break periods, regardless of whether on NRI property, and all hours when an employee represents NRI in any capacity.

WORK RULES

A. Substance Abuse by Employees

1. Alcohol

Employees may not use, possess, sell, or transfer alcohol while working, while on NRI property, or while operating NRI equipment, machinery, or vehicles. Employees may not work or report to work under the influence of alcohol, or with detectable levels of alcohol in their systems. Employees who violate either of these rules will be subject to discipline, up to and including immediate discharge. NRI may make exceptions to these rules for certain business or social functions sponsored or approved by NRI.

2. Illegal Drugs

Employees may not possess illegal drugs or engage in the illegal use of drugs while on duty, while working, while on NRI property, or while operating NRI equipment, machinery, or vehicles. Employees may not work or report to work under the influence of illegal drugs or with detectable levels of illegal drugs or the metabolites of illegal drugs in their systems. Employees may not manufacture, distribute, dispense, transfer, or sell illegal drugs. Employees who violate any of these rules will be subject to discipline, up to and including immediate discharge.

3. Legal Drugs/Medication

Any employee who has reason to believe that the legal use of drugs, such as a prescribed medication, may pose a safety risk to any person or interfere with the employee’s performance of his or her job must report such legal drug use to his or her supervisor. NRI shall then determine whether any work restriction or limitation is indicated. Failure to report the legal use of a drug that may pose a safety risk could result in disciplinary action.

B. Criminal Drug Convictions

Any employee who is convicted of violating any criminal drug statute while in the workplace will be subject to discipline up to and including immediate discharge. Employees are required to report any criminal drug statute conviction occurring in the workplace to their immediate supervisor within five days.

C. Inspection Of Property, Equipment, And Vehicles

All persons on NRI property or who are performing services on a NRI project, and all property, equipment, and vehicles on NRI property or being used in connection with the performance of work on a NRI project (including without limitation all vehicles, containers, desks, and file cabinets), are subject to unannounced inspection by NRI. You should not expect that any property or items that you bring to work with you or that you use at work are private. If you do not want any property or items inspected, do not bring them to work. Employees who refuse to permit inspections under this Policy or who fail to cooperate with inspections under this Policy will be subject to discipline, up to and including immediate discharge.


DRUG AND ALCOHOL TESTING

NRI may require that employees provide urine, blood, breath, and/or other samples for drug and alcohol testing under any of the following circumstances:

A. Reasonable Suspicion Testing.

NRI may require any employee to undergo drug and alcohol testing if management has a reasonable suspicion that the employee:

1. Has violated NRI’s written work rules prohibiting the use, possession, sale, or transfer of alcohol and/or illegal drugs while on duty, while working, while on NRI property, or while operating NRI equipment, machinery, or vehicles;

2. Is under the influence of alcohol and/or illegal drugs while on duty, while working, while on NRI property, or while operating NRI equipment, machinery, or vehicles;

3. Is impaired by alcohol and/or illegal drugs; or

4. May be affected by the use of alcohol and/or illegal drugs and that the use may adversely affect job performance or the work environment.

B. Post-Accident Testing.

NRI may require any employee to undergo drug and alcohol testing as soon as practicable after a work related accident, if NRI reasonably believes that the employee may have contributed to the accident.

C. Post-Injury Testing

NRI may require any employee who has sustained a work-related injury to undergo drug and alcohol testing.

D. Treatment Program Testing

Any employee who has been referred by NRI for chemical dependency treatment or evaluation or who is participating in a chemical dependency treatment program under an employee benefit plan may be required to undergo drug and alcohol testing without prior notice during the evaluation or treatment period and for up to two (2) years following the employee’s return to work.

E. Additional Testing

NRI also may require employees to undergo drug and alcohol testing when, in the judgment of management, such testing is appropriate for the maintenance of safety for employees, customers, clients, or the public at large, or for the maintenance of productivity, quality, or security of property or information.


SPECIMEN COLLECTION AND TESTING PROCEDURES

A. Specimen Collection Procedures

1. Test Subject Privacy.

Appropriate professional personnel will supervise the collection of urine and blood specimens for testing. In the absence of a reasonable suspicion that the test subject will alter or substitute a urine specimen, the collection personnel will not directly observe the collection of the urine specimen.

2. Chain of Custody Procedures.

NRI will take steps to preserve the chain of custody of specimens, in order to ensure testing accuracy.

B. Specimen Testing Procedures

Specimens will be tested only by laboratories that are properly approved to conduct drug and alcohol testing by the U.S. Department of Health and Human Services (SAMHSA, formerly NIDA), the College of American Pathologists, or the Arizona Department of Health Services. Specimens will be tested only for the presence of alcohol, illegal drugs, and their metabolites. Positive initial screening test results for employees will also be confirmed by gas chromatography/mass spectrometry or other appropriate methods of confirmatory analysis (“confirmatory test”).

C. Cost of Testing

NRI will pay for any drug and alcohol test that it requests or requires of any employee.

D. Suspensions Pending Test Results

Pending receipt of test results and written explanations of positive confirmatory test results, employees may be temporarily suspended. If an employee is suspended and the final confirmatory test result is negative, the employee will be reinstated immediately with full back pay.

E. Test Result Reports

NRI will promptly communicate test results to test subjects. Any test subject may request a copy of his or her test result report.


CONFIDENTIALITY OF TEST RESULTS

NRI will not disclose test results except as authorized by the test subject or as authorized, permitted, or required by applicable law.


CONSEQUENCES OF REFUSAL

Employees may refuse to undergo drug and alcohol testing. However, employees who refuse to undergo testing or who fail to cooperate with the testing procedures will be subject to discipline, up to and including immediate discharge. Employees who refuse to undergo testing or who fail to cooperate with the testing procedures also may be disqualified from receiving unemployment compensation benefits and/or workers’ compensation benefits.


RIGHT TO EXPLAIN TEST RESULTS

Any test subject who tests positive on a confirmatory test on any drug and alcohol test required by NRI may submit additional information to NRI Medical Review Officer/ Company Social Worker), in a confidential setting, to try to explain the confirmed positive test result.


CONSEQUENCES OF CONFIRMED POSITIVE TEST RESULTS

A. Employees

Any employee who tests positive on a confirmatory test on any drug and alcohol test required by NRI and does not timely and successfully explain the test results will be subject to appropriate disciplinary action, at the sole discretion of NRI, up to and including immediate discharge. Any employee who tests positive on a confirmatory test on any drug and alcohol test required by NRI, does not timely and successfully explain the test results, and is discharged on the basis of the positive test result, may be disqualified from receiving unemployment compensation benefits. Any employee who tests positive on a confirmatory test on any drug and alcohol test required by NRI after a work related injury and does not timely and successfully explain the test results may be disqualified from receiving workers’ compensation benefits in connection with the injury.


EMPLOYEE ASSISTANCE PROGRAM/SUBSTANCE ABUSE TREATMENT

A. NRI regards its employees as its most valuable asset. Accordingly, NRI maintains an Employee Assistance Program that provides help to employees who suffer from substance abuse and/or other mental health problems.

B. No employee will be subject to discipline for voluntarily seeking EAP assistance or substance abuse treatment. An employee may not, however, avoid discipline for violating the Substance Abuse Policy by seeking this assistance after the employee is referred for testing pursuant to this Policy. In addition, an employee’s participation in an EAP or referred substance abuse treatment program will not excuse the employee from being required to meet all of the same standards and qualifications for the job that apply to other employees, including performance, attendance, and other measures.

C. NRI will conduct drug free awareness programs periodically. These programs will inform employees about the dangers of drug and alcohol abuse in the workplace, NRI’s policy of maintaining a drug and alcohol-free workplace, available drug and alcohol counseling, rehabilitation, and employee assistance programs, and the sanctions that may be imposed for drug and alcohol abuse violations.

D. Employees are encouraged to approach their supervisor at any time with any questions they have about NRI’s Substance Abuse Policy.


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