PRECISION DRILLING CORPORATION HUMAN RESOURCES HR 15 - HARASSMENT, DISCRIMINATION AND RETALIATION POLICY UNITED STATES

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1 PRECISION DRILLING CORPORATION HUMAN RESOURCES HR 15 - HARASSMENT, DISCRIMINATION AND RETALIATION POLICY UNITED STATES

2 TABLE OF CONTENTS 1 Scope Purpose Definition of Harassment Compliance Reporting Complaints Employee Responsibilities Customers, Vendors, Contractors and Third Parties Retaliation... 5 REVISION HISTORY REVISION # DATE REVISED 1 JAN FEB 2010 Page 2 of 5

3 1 Scope For the purposes of this policy, Precision includes Precision Drilling Holdings Company and Precision Drilling Company LP and all their related, affiliated and subsidiary entities in the United States. This policy applies to full-time, part-time and temporary employees and contractors. 2 Purpose Precision is committed to providing employees a work environment free from all forms of harassment and discrimination. Precision will not under any circumstance condone or tolerate any conduct which may constitute harassment or discrimination based on race, color, national origin, religion, sex, marital status, physical or mental disability (present or past), pregnancy, medical condition, genetic characteristics, ancestry, age, nationality, citizenship, veteran or military status, political affiliation, or any other characteristic protected by local, state or federal law, whether it is committed by managers or non-manager personnel or non-employees, including vendors, customers, or suppliers. 3 Definition of Harassment Harassment includes, but is not limited to, verbal abuse, by any form of communication, including electronic communications, such as name calling, slurs, derogatory comments that may include ethnic jokes, sexual innuendos, graphic or suggestive comments about an individual, and unwelcome physical contact or conduct. Harassment may also include offensive gestures, offensive or explicit language, posters, cartoons, or drawings that are derogatory, suggestive, or explicit to an individual or groups of individuals. Harassment will violate this policy whether the harassment occurs between individuals of the same or opposite sex. 4 Compliance Precision will take reasonable steps to ensure all employees, contractors, vendors, and clients comply with the policy. Any employee who engages in prohibited conduct which falls within the parameters of the policy will be subject to appropriate disciplinary action up to and including termination of employment. 5 Reporting Complaints Employees and managers are responsible for keeping the workplace free from all forms of harassment and discrimination and managers must be especially sensitive to acts and conduct which may be considered offensive conduct. Employees who believe they or one of their co-workers are the victim of harassment or discrimination and feel his or her work is being unreasonably interfered with by such conduct must report the conduct to their manager or Human Resources. Any employee who witnesses or is otherwise aware of discrimination or harassment involving others must report it to their manager or Human Resources. Any individual receiving a report of harassment or discrimination must contact their manager or Human Resources. If for any reason, an employee is Page 3 of 5

4 unable to report to his or her manager or Human Resources, the employee should instead utilize Precision s confidential Ethicspoint reporting system at or by calling toll-free to report the complaint. Managers must deal with allegations of harassment and discrimination immediately by reporting the allegations to their manager and Human Resources or by calling toll free Managers who knowingly allow or tolerate harassment or discrimination are in violation of the policy and subject to discipline up to and including termination of employment. After receiving a complaint of harassment or discrimination, Human Resources will conduct a prompt investigation into the allegations and will maintain confidentiality as much as possible. Human Resources, however, cannot promise complete confidentiality in every case. Human Resources will make every reasonable effort to handle inquiries, complaints, and related proceedings in a manner that protects the confidentiality of all parties. Following the investigation, Human Resources, in coordination with the manager, will take all appropriate action, including discipline, transfer, demotion, or termination of employment of the alleged harasser(s), if warranted. The investigator will also follow-up with the employee who brought the allegation to explain Human Resource s actions. 6 Employee Responsibilities While employees are encouraged to communicate directly with the alleged harasser and make it clear their behavior is unacceptable, offensive or inappropriate, they are not required to do so. It is essential that employees notify their manager or Human Resources immediately even if they are not sure the offending behavior is considered harassment. All employees are responsible for creating a working environment that is free of harassment and discrimination. It is important to contact your manager, Human Resources or Ethicspoint, if any of the following occurs: You believe you have been subjected to conduct that may violate this policy; You believe you have been retaliated against in violation of this policy; or You hold a manager or management position, and have been told about or witnessed conduct that you think may violate this policy. 7 Customers, Vendors, Contractors and Third Parties Precision's policy on discrimination and harassment applies to the conduct of customers, vendors, contractors and third parties. If any employee believes he or she has been subjected to conduct by a vendor, contractor or third party that violates this policy, the employee should report the incident to their manager, Human Resources or Ethicspoint. The appropriate party will respond depending on the nature of its relationship to the customer, vendor, contractor or third-party. Page 4 of 5

5 8 Retaliation Precision has a strict policy prohibiting retaliation against any person that makes a good-faith complaint or participates in an investigation pursuant to this policy. Retaliation is a serious violation that can subject the offender to disciplinary action independent of the merits of the harassment allegation. Anyone experiencing any conduct he or she believes to be retaliatory should immediately report it to Human Resources or Ethicspoint. All complaints of retaliation will be promptly investigated. Page 5 of 5

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