REDI MART TOBACCO Drug-Free Workplace Policy Redi Mart Tobacco (referred to as The Company) is firmly committed to providing a drug-free workplace for the safety of its employees and for the safety of the general public. The Company contends that employees who use or abuse unauthorized controlled substances are a danger to themselves, their co-workers, the public and the Company s assets. Accordingly, the Company is implementing a new company policy as of November 20, 2006, to have a drug-free workplace and to hire and maintain only employees that are drug-free. This policy applies to all employees and job applicants after a job offer has been made. Any employee found to be in the possession of, under the influence of, impaired by (either by ingestion on work hours or off work hours where such ingestion impairs during work hours), using, selling, offering for sale, or trading (whether or not for profit or monetary gain) controlled substances, shall be in violation of our Drug-Free Workplace Policy. Unauthorized Controlled Substances will be defined as: Amphetamines Barbiturates Benzodiazepines Cocaine Metabolites Opiates Phencyclidine (PCP) Propoxyphene THC (Marijuana) Metabolite Methadone Methaqualone This policy does not apply to prescription medications provided that (a) the licensed medical practitioner prescribing such medication is familiar with the employee s medical history and assigned duties, and (b) that the employee s job performance is not affected adversely by such use. Any employee taking a drug prescribed by a licensed physician must keep the drug in its original container which clearly identifies the drug, the dosage, the date of the prescription and the authorized physician. The employee shall be responsible to advise their Company supervisor of any prescription drugs they are taking, immediately after such medication is prescribed. The employee should also advise the same supervisor of any work precautions advised by the physician or noted on the prescription container which should be observed while taking the prescribed drug (e.g. restrictions on driving, etc.). Abuse of legal prescription or over-the-counter drugs which could impair the judgment of an employee or affect work performance or the safety of their co-workers and the general public is also strictly prohibited. All employees are advised that remaining drug-free are conditions of continued employment with the Company. Employees found in violation of this strict policy will be subject to disciplinary action up to and including termination of employment. DRUG FREE WORKPLACE POLICY 2002 AMC, INC. Page 1 of 9
EMPLOYEE ASSISTANCE PROGRAM (EAP) REHABILITATION The Company recognizes that drug abuse may be an illness for which treatment and rehabilitation programs may be available. If an employee voluntarily reports drug dependency, the employee may be granted a medical leave to enter a rehabilitation program. Any costs will be borne by the employee. Volunteer participation by employees in EAPs is not to be construed as discipline. However, volunteering will not grant immunity to any prior or future documented instances which would normally result in some type of disciplinary action or disqualification. DRUG TESTING All drug testing will be performed at a laboratory approved by the United States Department of Health and Human Services (DHHS). The presence of unauthorized controlled substances in amounts equal to or greater than the levels established in DHHS guidelines is defined to be in violation of this policy. The Company may conduct drug testing under the following events: Pre-employment Follow-up Post-Accident Random Reasonable Suspicion Pre-employment will be defined as prior to employment with the Company after a job offer has been made, or after an extended period of time, such as medical leave, lay-off period, suspension or general leave of absence. Testing will be for drugs only. Follow-up testing will be defined as testing in conjunction with a prescribed rehabilitation program. This testing may continue for a period of up to two years following completion of the prescribed rehabilitation program. Post Accident testing will be defined as a personal injury that requires the employee to leave the job facility and receive medical attention, or an individual that has caused another employee to receive a personal injury that requires the employee to leave the job facility and receive medical attention. These will be considered cause for a post-accident drug test. An on the job accident where there is no personal injury, but damages to company assets, exceeding $500.00 will also be cause for a postaccident drug test. Post accident testing in no case is to exceed 24 hours from the date and time of the accident. Refusal to comply with this procedure will be treated as a positive test and shall be treated as such. Random testing will be defined as a Company wide selection process which removes discretion in selection from any supervisory personnel, and is a surprise drug screen for a pre-determined percentage of Company employees. The random selection process will be done by an outside administer and is computer generated to remove the possibility of bias from any one individual related to the Company. This random test will be conducted quarterly. All active employees will be subject to this test. DRUG FREE WORKPLACE POLICY 2002 AMC, INC. Page 2 of 9
Reasonable Suspicion will be defined as displaying behavior that may be related to the use of drugs, or is otherwise demonstrating conduct that is in violation of the Company s Drug-Free Workplace Policy prohibiting the use, possession, sale, or transfer of controlled substances while the employee is working or while the employee is on the Company s premises or operating the Company s vehicle, machinery or equipment. Where immediate management action is necessary, the Company supervisor, with the concurrence of the Drug-Free Workplace Program Coordinator, will require the employee to submit to drug. BEHAVIOR OFF THE PREMISES Any Company employee who is arrested for off-the-job drug activity may be considered to be in violation of this policy. In deciding what action to take, Company management shall take into consideration the nature of the charges, the employee s present job assignment, the employee s work record and other factors relative to the impact of the arrest upon the safety of the public and the conduct of Company business. Company employees are required to notify their manager if they are convicted of a criminal drug or alcohol offense occurring on Company premises or while conducting Company business. Notification must be made within (5) days after the conviction as mandated by the Drug-Free Workplace Act of 1988. EMPLOYEES IN POSSESSION Any employee found in possession of illegal drugs or unauthorized controlled substances, on the job or on Company property shall be immediately terminated from employment with the Company. The possession of illegal drugs or controlled substances shall be reported to local law enforcement officials by the Company. NOTIFICATION The terms of this policy shall be communicated to all employees and applicants, each of whom will be required to acknowledge such communication. Each employee will receive a copy of this policy, as well as appendices and definitions of common terms/phrases pertaining to drug testing. In the event an applicant withdraws consent to a Pre-employment drug test, all processing employed with the pre-hiring process shall cease. REFUSAL TO SUBMIT TO TESTING Employees have the right to refuse drug testing. Refusal is considered a positive test result for the test(s) refused, and the employee will be subject to all prescribed requirements for the positive test. Job applicants refusing a Pre-employment drug test will not be hired by the Company. DRUG FREE WORKPLACE POLICY 2002 AMC, INC. Page 3 of 9
THIRD PARTY ADMINISTRATOR The Company has retained AMC Inc., as a third party agency that specializes in consultation relevant to drug testing. AMC will assign a clinic for specimen collection, assign a laboratory for screening of specimens, and assign a Medical Review Officer (MRO) to interpret the results of drug tests. MEDICAL REVIEW OFFICER The Medical Review Officer shall: Receive all drug test results Ensure that the Chain of Custody forms are in order Review and interpret each positive drug test result Conduct a medical interview with any individual that tested positive, if desired by that individual. Verify all drug tests are negative or positive The MRO will work with the Company Drug-Free Workplace Program Coordinator and/or other designated management representatives to: Determine whether and when a subject individual involved in a rehabilitation program may return to work. Ensure that an individual has been retested before returning to work after rehabilitation. Schedule and review all post-rehabilitation tests. In results that are positive, the applicant or employee will be allowed to speak to the MRO to explain and present any medical documentation to support any permissible use of a drug. All such discussions between the employee and the MRO will be confidential. The Company will not be a party to nor have access to matters discussed between the employee and MRO. If legitimate, medically supportable reasons exist for the positive test result, the MRO will report the test result to the Company as a negative. An employee has (even after termination) up to 30 days to appeal their results if they disagree with a MRO verified positive report and believes the test results were caused by some legitimate medical explanation. The employee may have a portion of the specimen independently tested at their own expense, provided that written notification is sent to AMC within 5 working days after being notified of the positive result. DRUG FREE WORKPLACE POLICY 2002 AMC, INC. Page 4 of 9
Appendix A DEFINITIONS Chain of Custody - Refers to the laboratory requisition used to track the specimen from the point of initial collection to final disposition of the result. Confirmatory Test - For drug testing, it means a second analytical procedure to identify the presence of a specific drug or drug metabolite which is independent of the initial screening test and which uses a different technique and chemical principal from that of the screening test in order to ensure reliability and accuracy. Confirmed Positive Test - The result of a confirmatory test that has been reviewed by the MRO and has established the presence of drugs, or drug metabolites, in a specimen at or above the specified cutoff level. Cutoff Level - The value set for designating a test result as positive. Drug Test - An approved instrumental analysis administered to detect the presence of illegal drugs. Employee Assistance Program (EAP) - Confidential means to obtain assistance of a highly skilled counselor for any personal problems which may be troubling an employee. Employees Subject to Testing - Employees, employee-applicants who have received a job offer, or employees returning to duty after a medical leave, lay-off period, suspension or general leave of absence. Illegal Drugs - Any drug or controlled substance in which the sale or consumption is not legal. Medical Review Officer (MRO) - A licensed M.D. or D.O. with knowledge of drug abuse disorders that is employed or used by an employer to conduct drug testing in accordance with this policy. Prescribed Drugs - Any substance prescribed for individual consumption by a licensed medical practitioner (Doctor). Prescription drugs used contrary to doctor s instructions include prescribed drugs used by a third party. Screening Test - For drug testing, it means an immunoassay screen for drug metabolites to eliminate negative urine specimens from further consideration. Unauthorized Controlled Substances - Any drug that the company has defined as prohibited substance under the policy; Amphetamines, Barbiturates, Benzodiazepines, Cocaine Metabolites, Opiates, Phencyclidine (PCP), Propoxyphene, THC (Marijuana) Metabolite, Methadone and Methaqualone. DRUG FREE WORKPLACE POLICY 2002 AMC, INC. Page 5 of 9
Appendix B Dear Company Employee or Job Applicant: EMPLOYEE NOTIFICATION LETTER Redi Mart Tobacco has adopted its Drug-Free Workplace Policy. It is the firm belief of this Company that providing a safe work environment free from the potential hazards that drug abuse may cause, is the right of every employee that is employed by us. Specifically, it is the policy of the Company that the use, sale, purchase, transfer, possession or presence in one s system (above established cutoff levels) of any unauthorized controlled substances (except properly taken medications prescribed by a licensed physician) by any employee while on company premises, while engaged in company business, while operating company equipment and vehicles (including leased vehicles), or while under the authority of the Company is strictly prohibited. Under the procedures adopted, employees may be required to submit to urinalysis upon the following employment events: Pre-Employment, Follow-up, Post-Accident, Random, and Reasonable Suspicion. Specific detail on the policy and attachments are being provided to you today by your manager. Please make sure that you receive one. We hope this action that the Company asserts itself as a responsible workplace where its employees are safe and happy. DRUG FREE WORKPLACE POLICY 2002 AMC, INC. Page 6 of 9
Appendix C ACKNOWLEDGMENT OF NOTICE I, acknowledge receiving written notice of the Company s Drug-Free Workplace Policy. As a condition of continued employment or service with the Company, I understand and agree that the use, sale, purchase, transfer, possession or presence in my system (above established cutoff levels) of any unauthorized controlled substances (except properly taken medications prescribed by a licensed physician) while on company premises, while engaged in company business, while operating company equipment and vehicles (including leased vehicles), or while under the authority of the Company is strictly prohibited. I understand and agree that I may be required to submit to urinalysis testing for the detection of unauthorized controlled substances based upon reasonable suspicion, in conjunction with a prescribed rehabilitation program, following an on-the-job accident, prior to employment with the Company after a job offer has been made or after an extended period of time off, such as medical leave, lay-off period, suspension or general leave of absence) or on a random basis. I understand that if I test positive, I will be interviewed by a Medical Review Officer (MRO) and allowed to submit medical information which I believe may explain the positive result. I further understand, that refusal to submit to testing when requested to do so by a Company supervisor will be considered a positive test result for the test(s) refused, and I will be subject to all prescribed requirements for the positive test. I understand if I am a job applicant and refuse a Preemployment drug test I will not be hired by the Company. Signature: Date: Witness: Date: DRUG FREE WORKPLACE POLICY 2002 AMC, INC. Page 7 of 9
Appendix D REFUSAL TO SUBMIT TO TESTING I, acknowledge that I have been asked by a Company supervisor, to submit to urinalysis for the presence of unauthorized controlled substances in my body. I have refused to submit to such testing. I have been informed and I understand that my continued refusal to testing will be considered a positive test result for the test(s) refused, and I will be subject to all prescribed requirements for the positive test. I understand if I am a job applicant I will not be hired by the Company. Signature: Date: Witness: Date: DRUG FREE WORKPLACE POLICY 2002 AMC, INC. Page 8 of 9
LAST CHANCE AGREEMENT Appendix E On,, agreed to your request to seek Date Company Supervisor counseling and referral to a rehabilitation program for drug abuse. The following conditions apply to your rehabilitation program: 1. You must authorize to provide proof of enrollment in Treatment Counselor a drug abuse rehabilitation program and proof of attendance at all required sessions on a monthly basis to the Company s. The Company Company Supervisor will closely monitor your attendance and will terminate your employment if you do not regularly attend all required sessions. 2. If you are absent from work during the rehabilitation program, you must promptly submit a written doctor s note explaining the reason for such absence. The Company will terminate your employment if you are absent as a result of drug abuse. 3. During the two years following completion of your rehabilitation program, the Company will test you for drug abuse on a random basis. The Company will promptly terminate your employment if you refuse to submit to testing or if you test positive during this two year program. 4. You must meet all established standards of conduct and job performance. The Company will terminate your employment if your on-the-job conduct or job performance is unsatisfactory. 5. Nothing in this agreement alters your status. The Company hopes the employment relationship with you will be a happy and enduring one. Nevertheless, you remain free to resign your employment at any time for any reason without notice. Similarly, the Company reserves the right to terminate you, for any or no reason, without notice. No one can alter your at will status except, in writing. Company Official I voluntarily agree to all of the above conditions and authorize to Treatment Counselor provide my supervisor with proof of my enrollment and attendance at my rehabilitation program. Signature: Company Official: Witness: Date: Date: Date: DRUG FREE WORKPLACE POLICY 2002 AMC, INC. Page 9 of 9