Covenant Employee Handbook (September 2018 Revision) by Covenant Testing Technologies

EMPLOYEE HANDBOOK REV. 9.2.2018

Table of Contents SECTION: 1-INTRODUCTION..................................................................................................................... 1 1.1 Welcome to Covenant ................................................................................................................ 1 1.2 Mission Statement ..................................................................................................................... 2 1.3 Purpose of Employee Handbook................................................................................................. 2 SECTION: 2-COVENANT CARES PROGRAMS.............................................................................................. 2 2.1 Covenant Cares Programs .......................................................................................................... 2 2.1.1 Employee Care .................................................................................................................... 2 2.1.2 Familly Coaching.................................................................................................................. 2 2.1.3 Culture Care ........................................................................................................................ 3 2.2 Brotherâ&#x20AC;&#x2122;s Keep Initiative ............................................................................................................. 3 2.3 Education Assistance Program.................................................................................................... 3 SECTION: 3-BENEFITS............................................................................................................................... 4 3.1 Benefit Eligibility ........................................................................................................................ 4 3.2 Medical Coverage....................................................................................................................... 5 3.3 Qualifying Event ......................................................................................................................... 5 3.4 Benefit Coverage on Leave ......................................................................................................... 5 3.5 Termination of Coverage During Leave ....................................................................................... 5 3.6 Returning from Leave ................................................................................................................. 5 3.7 Eligibility of Personal Leave ........................................................................................................ 5 3.7.1 Unpaid Time Off .................................................................................................................. 6 3.7.2 Employee Requirements...................................................................................................... 6 3.7.3 Supervisor Requirements .................................................................................................... 6 3.7.4 Return to Work/Extension of Leave ..................................................................................... 6 3.8 Short-Term Disability (STD) and Long-Term Disability (LTD) ........................................................ 6 3.9 Employee Assistance Program (EAP)........................................................................................... 7 3.10 Consolidated Omnibus Budget Reconciliation Act (COBRA)....................................................... 7 3.11 401(k) Retirement Plan............................................................................................................. 8 3.12 Paid Time Off ........................................................................................................................... 8 3.12.1 Full-Time Non-Exempt ....................................................................................................... 8 3.12.2 Full-Time Salaried Exempt ................................................................................................. 9 3.13 Donating Accrued PTO ............................................................................................................. 9 3.14 Use of Accrued PTO .................................................................................................................. 9 ii

3.15 Holidays ................................................................................................................................. 10 3.15.1 Scheduled Company Holidays .......................................................................................... 10 3.15.2 Guidelines for Holiday Pay ............................................................................................... 10 3.15.3 Working on a Holiday ...................................................................................................... 10 3.16 Jury Duty ................................................................................................................................ 10 3.17 Bereavement.......................................................................................................................... 11 SECTION: 4-LEGAL COMPLIANCE ............................................................................................................ 11 4.1 At Will Employment ................................................................................................................. 11 4.2 Equal Employment Opportunity ............................................................................................... 11 4.3 Immigration Reform and Control Act (Form I-9)........................................................................ 12 4.4 Employee Classification ............................................................................................................ 12 4.4.1 Full-Time ........................................................................................................................... 12 4.4.2 Part-Time .......................................................................................................................... 12 4.4.3 Temporary......................................................................................................................... 12 4.4.4 Contract ............................................................................................................................ 13 4.4.5 Exempt Status ................................................................................................................... 13 4.4.6 Non-Exempt Status ............................................................................................................ 13 4.5 Health Insurance Portability and Accountability Act (HIPPA)..................................................... 13 4.6 Americans With Disabilities Act ................................................................................................ 13 4.6.1 Reasonable Accommodations ............................................................................................ 13 4.6.2 ADA Leave ......................................................................................................................... 14 4.7 Family Medical Leave Act (FMLA) ............................................................................................. 14 4.7.1 FMLA Notice ...................................................................................................................... 14 4.7.2 Notice of Leave.................................................................................................................. 14 4.7.3 Medical Certification ......................................................................................................... 15 4.7.4 Intermittent or Reduced Work Schedule Leave .................................................................. 15 4.7.5 Sharing FMLA with Spouse................................................................................................. 15 4.8 Covered Service Member ......................................................................................................... 15 4.8.1 Medical Caregiver Leave .................................................................................................... 16 4.8.2 Medical Qualifying Exigency Leave..................................................................................... 16 4.8.3 Health and Welfare Benefits .............................................................................................. 16 4.8.4 Fitness for Duty Certification and Testing .......................................................................... 16 4.9 Leave Financial Obligations ...................................................................................................... 17 iii

4.10 Pregnancy Disability Leave (PDL) ............................................................................................ 17 4.10.1 Length of PDL .................................................................................................................. 17 4.10.2 Reasonable Accommodations .......................................................................................... 17 4.10.3 Intermittent or Reduced Work Schedule .......................................................................... 17 4.10.4 Returning to Full Duty ...................................................................................................... 17 4.10.5 Employee Benefits Under PDL ......................................................................................... 18 4.10.6 Employeeâ&#x20AC;&#x2122;s Responsibility Under PDL .............................................................................. 18 4.10.7 Medical Certification, Recertification and Return to Work Requests for PDL .................... 18 4.10.8 PDL Notice ....................................................................................................................... 19 4.11 Lactation Accommodations .................................................................................................... 19 4.12 Uniformed Services Employment and Re-Employment Right Act (USERRA)/Military ............... 19 4.12.1 Military Leave .................................................................................................................. 19 4.12.2 Benefits ........................................................................................................................... 19 4.13 401(k) Retirement .................................................................................................................. 20 4.14 Re-Employment ..................................................................................................................... 20 4.14.1 Employee with a Service-Connected Disability ................................................................. 21 4.15 Application for Re-Employment.............................................................................................. 21 4.15.1 Service Length ................................................................................................................. 21 4.16 Exceptions to Re-Employment ................................................................................................ 21 4.17 Benefits Upon Re-Employment............................................................................................... 21 SECTION: 5-EMPLOYMENT PRACTICES ................................................................................................... 22 5.1 Probationary Period ................................................................................................................. 22 5.2 Termination ............................................................................................................................. 22 5.3 Personnel Files ......................................................................................................................... 23 5.4 Job Requisition Process ............................................................................................................ 23 5.5 Personnel Information ............................................................................................................. 23 5.6 Employment Verification .......................................................................................................... 23 5.6.1 Verbal Employment Verifications....................................................................................... 23 5.6.2 Written Employment Verifications..................................................................................... 24 5.7 Personal Appearance ............................................................................................................... 24 5.7.1 Hygiene ............................................................................................................................. 24 5.7.2 Grooming .......................................................................................................................... 24 5.7.3 Appropriate Dress Code..................................................................................................... 24 iv

5.7.4 Inappropriate Dress Code .................................................................................................. 25 5.8 Housing Accommodations/Man Camps .................................................................................... 25 5.9 Annual Criminal Background/Motor Vehicle Reviews (MVRs) ................................................... 26 5.10 Sick Time ................................................................................................................................ 27 5.11 Passage of Time ..................................................................................................................... 27 SECTION: 6-HOURS OF WORK, ATTENDANCE AND PUNCTUALITY........................................................... 27 6.1 Hours of Work .......................................................................................................................... 27 6.2 Timekeeping Process ................................................................................................................ 27 6.3 Break Periods ........................................................................................................................... 27 6.4 Overtime .................................................................................................................................. 28 6.5 Active/Standby Pay .................................................................................................................. 28 6.6 Pay Schedule ............................................................................................................................ 28 6.7 Direct Deposit .......................................................................................................................... 28 6.8 Pay Card ................................................................................................................................... 29 6.9 Wage Deduction....................................................................................................................... 29 6.10 Repayments ........................................................................................................................... 29 6.11 Unscheduled Absences and Tardiness .................................................................................... 30 SECTION: 7-EMPLOYEE DEVELOPMENT .................................................................................................. 31 7.1 Job Postings, Promotions and Transfers ................................................................................... 31 7.2 Performance Development ...................................................................................................... 31 SECTION: 8-CODE OF BUSINESS ETHICS.................................................................................................. 31 8.1 Conflict of Interest ................................................................................................................... 31 8.2 Personal Relationships ............................................................................................................. 32 8.2.1 Relationship Guidelines ..................................................................................................... 32 8.2.2 Position of Importance ...................................................................................................... 32 8.2.3 Relationship Conflict of Interest......................................................................................... 33 8.3 Related Parties Policy - Employment of Friends and Relatives................................................... 33 8.4 Outside Employment (Moonlighting)........................................................................................ 34 8.4.1 FMLA/ADA/PDL/STD/LTD and Workersâ&#x20AC;&#x2122; Compensation ..................................................... 35 8.5 Financial Interest in Other Business .......................................................................................... 35 8.6 Reporting Potential Conflicts .................................................................................................... 35 8.7 Standards of Conduct ............................................................................................................... 35 8.8 Conflict Resolutions.................................................................................................................. 35 v

8.9 Inventions and Creative Works ................................................................................................. 35 8.10 Anti-Harassment Plan............................................................................................................. 36 8.11 Sexual Harassment ................................................................................................................. 36 8.11.1 Quid Pro Quo Harassment ............................................................................................... 36 8.11.2 Hostile Work Environment............................................................................................... 37 8.12 Different Types of Harassment ............................................................................................... 37 8.12.1 Reporting Harassment ..................................................................................................... 37 8.13 Investigation .......................................................................................................................... 38 8.14 Non-Retaliation ...................................................................................................................... 38 8.15 Managementâ&#x20AC;&#x2122;s Responsibility................................................................................................. 38 SECTION: 9-SAFETY AND SECURITY ........................................................................................................ 38 9.1 Weapons .................................................................................................................................. 38 9.2 Search and Inspection .............................................................................................................. 39 9.2.1 Desks/Lockers/File Cabinets .............................................................................................. 39 9.2.2 Personal Items................................................................................................................... 39 9.3 Investigations ........................................................................................................................... 40 9.4 Anti-Terrorism Policy................................................................................................................ 40 9.5 Violence-Free Workplace ......................................................................................................... 40 9.5.1 Intimidation....................................................................................................................... 41 9.5.2 Stalking ............................................................................................................................. 41 9.5.3 Threat ............................................................................................................................... 41 9.5.4 Physical Attack .................................................................................................................. 41 9.5.5 Domestic Violence ............................................................................................................. 41 9.5.6 Property Damage .............................................................................................................. 41 9.5.7 General Violence ............................................................................................................... 41 9.6 Horse Playing ........................................................................................................................... 41 9.7 Accidents and Emergencies ...................................................................................................... 42 9.7.1 Reporting of an Accident/Incident ..................................................................................... 42 9.8 Covenant Emergency Operations Plan ...................................................................................... 42 9.9 Building Access Polies and Procedures ..................................................................................... 43 9.9.1 Visitors in the Workplace ................................................................................................... 43 9.10 Solicitation During Work......................................................................................................... 44 9.11 Drug and Alcohol Substance Abuse......................................................................................... 44 vi

9.11.1 Definitions ....................................................................................................................... 45 9.12 Prohibitions............................................................................................................................ 46 9.12.1 Designated Employee Representative (DER) .................................................................... 47 9.12.2 Medical Review Officer (MRO) ......................................................................................... 47 9.13 Testing Requirements............................................................................................................. 47 9.13.1 Pre-Access Testing ........................................................................................................... 47 9.13.2 Post-Incident Testing ....................................................................................................... 48 9.13.3 Reasonable Suspicion Testing .......................................................................................... 49 9.13.4 Random Testing............................................................................................................... 49 9.13.5 Wall-to-Wall Testing ........................................................................................................ 49 9.14 Testing Protocol ..................................................................................................................... 50 9.14.1 Laboratory ....................................................................................................................... 50 9.14.2 Collection Personnel ........................................................................................................ 50 9.14.3 Breath/Saliva ................................................................................................................... 51 9.14.4 Alcohol ............................................................................................................................ 51 9.15 Non-Compliance..................................................................................................................... 51 9.16 Special Provisions-Customer Approved Consortium................................................................ 51 9.17 Supervisor Training................................................................................................................. 51 9.18 Audit ...................................................................................................................................... 52 9.19 Urine Non-DOT and Alcohol Testing Protocol ......................................................................... 53 9.20 Hair Follicle Drug Testing Protocol .......................................................................................... 53 9.21 Smoking/Tobacco Products .................................................................................................... 53 9.21.1 Smoking .......................................................................................................................... 53 9.21.2 Tobacco Products ............................................................................................................ 54 9.22 Medical Treatment ................................................................................................................. 54 9.23 Workersâ&#x20AC;&#x2122; Compensation ......................................................................................................... 54 9.24 Reporting of an Accident/Incident .......................................................................................... 54 9.25 Post Accident ......................................................................................................................... 54 9.26 Personal Protective Equipment .............................................................................................. 55 9.26.1 Uniform Attire ................................................................................................................. 55 9.26.2 Footwear ......................................................................................................................... 55 9.27 Inclement Weather ................................................................................................................ 55 9.28 Searches and Inspections ....................................................................................................... 56 vii

9.29 Workplace Surveillance and Monitoring ................................................................................. 56 9.30 Photograph and Publicity Release........................................................................................... 56 9.31 Use of Personal Information on Internet Based Platforms and Websites ................................ 56 SECTION: 10-EXPENSE REIMBURSEMENT ............................................................................................... 57 10.1 Authorization and Responsibility ............................................................................................ 57 10.2 Personal Funds ....................................................................................................................... 57 10.3 PTO in Conjunction with Business Travel ................................................................................ 57 10.4 Airfare .................................................................................................................................... 57 10.5 Vehicle Rental ........................................................................................................................ 58 10.6 Conference Fees..................................................................................................................... 58 10.7 Travel Advances ..................................................................................................................... 58 10.8 Reimbursements .................................................................................................................... 58 10.9 Lodging .................................................................................................................................. 59 10.10 Per Diem .............................................................................................................................. 59 10.11 Business Meals ..................................................................................................................... 59 10.12 Business Expenses ................................................................................................................ 59 10.13 Travel for Non-Employees .................................................................................................... 59 SECTION: 11-DATA PROTECTION AND INFORMATION TECHNOLOGY ..................................................... 60 11.1 Use of Company Equipment ................................................................................................... 60 11.2 Internet, E-mail and Communication ...................................................................................... 60 11.3 Use of Company Telephones .................................................................................................. 60 11.4 Company Cellphones or Reimbursement of Personal Cellphones............................................ 61 11.5 Personal Use of Company-Issued Cellphone ........................................................................... 61 11.6 Security of Company-Issued Phones ....................................................................................... 61 11.7 Usage ..................................................................................................................................... 61 11.8 Computers and E-mail ............................................................................................................ 62 11.9 Misuse of Computer Resources .............................................................................................. 62 11.10 Copyright Issues ................................................................................................................... 63 11.11 Internet and E-Mail Use........................................................................................................ 64 11.11.1 E-mailing ....................................................................................................................... 64 11.11.2 E-mail Disclaimer ........................................................................................................... 64 11.12 Security ................................................................................................................................ 65 11.13 Use of Social Media .............................................................................................................. 65 viii

SECTION: 12-TERMINATION OF EMPLOYMENT ...................................................................................... 66 12.1 Types of Terminations ............................................................................................................ 66 12.1.1 Voluntary Resignation ..................................................................................................... 66 12.1.2 Involuntary Termination .................................................................................................. 66 12.1.3 Job Abandonment ........................................................................................................... 66 12.1.4 Layoff .............................................................................................................................. 66 12.2 Exit Interviews........................................................................................................................ 66 12.3 Return of Company Issued Property ....................................................................................... 66 12.4 Rehire Eligibility...................................................................................................................... 67 SECTION: 13-MOTOR VEHICLE USAGE FOR COMPANY BUSINESS ........................................................... 67 13.1 Motor Vehicle Requirements.................................................................................................. 67 13.2 Company Vehicle Use ............................................................................................................. 67 13.3 Company Vehicle Use While on Leave .................................................................................... 68 13.4 Company Issued Fuel Card...................................................................................................... 68 13.5 Personal Vehicle Allowance (PVA) .......................................................................................... 69 SECTION: 14-EMPLOYEE CONDUCT ........................................................................................................ 69 14.1 Poor Performance .................................................................................................................. 69 14.2 Misconduct ............................................................................................................................ 69

SECTION: 1-INTRODUCTION 1.1 Welcome to Covenant Covenant is the leading well-flow management company through which servant leaders provide premium quality service with a safe, swift, and adaptive mindset. Welcome to the Covenant Team. We thank you for choosing to work for Covenant Testing Technologies, LLC. We are on mission to create the best well testing company in the world. With your expertise and dedication, Covenant will be a place where quality, integrity, and technology come together. Above all, Covenant strives to develop a culture that honors and serves our employees, customers, and investors equally as people that make our business possible. We are delighted to have you join us as we strive to deliver innovative solutions founded in safety and excellence in service. Your decision to partner with Covenant and entrust this company with the wellbeing of your family is not taken lightly by me, or any member of the management team. Now that you have become a valuable part of Covenant, together we will proactively engage any opportunities that arise and collaborate as a team. We look forward to your commitment, solutionsoriented mindset, and openness to new ideas. Should you or your family have any questions about Covenant, feel free to contact me, as my door is always open. I look forward to working with you. Sincerely,

John Cavitt, CEO

1.2 Mission Statement

Covenant is the leading well-flow management company through which servant leaders provide premium quality service with a safe, swift, and adaptive mindset.

1.3 Purpose of Employee Handbook

This Employee Handbook (“Handbook”) is designed to answer some of the questions employees may have concerning Covenant Testing Technologies (“Covenant”) and its policies. The contents of this Handbook are not an employment contract or agreement; rather, they represent a general outline or guideline of the Human Resource policies, benefits, and expectations and are subject to modification, revocation, suspension, termination, or change, in whole or in part, with or without notice, at the sole discretion of Covenant. Nothing contained in this handbook, or any other handbooks, employment applications, memoranda and other materials given to employees regarding their employment, whether singly or combined, shall create an express or implied contract concerning any terms or conditions of employment, or shall create a guarantee of assurance of employment, or shall create any right to an employment-related benefit or procedure. Employment at Covenant is employment at will; which means that either the employee, or Covenant may terminate the employment relationship at any time, for any, or no reason. No one except the CEO of Covenant is authorized to make binding employment contracts, and such contracts will be recognized only if they are in writing and signed by both the employee, and the CEO. This handbook supersedes and replaces all previously existing personnel policies, handbooks, manuals, guidelines, correspondence, rules, and oral or written representations previously given or advised by Covenant. Employees are required, as a condition of their employment, to read the Employee Handbook and sign the Acknowledgement Form provided to them. Covenant will interpret and amend these guidelines as necessary and communicate changes accordingly.

SECTION: 2-COVENANT CARES PROGRAMS 2.1 Covenant Cares Programs Covenant Cares is an Employee Assistance Initiative of our company designed to actively and personally care for our employees and their families. This initiative reflects our dedication to a healthy corporate culture, positive character development, and the overall wellbeing and support of our Covenant family. Employees who are physically, mentally, emotionally and financially healthy are a high priority for Covenant. Our focus on total wellness is accomplished through the following:

2.1.1 Employee Care • • • • •

Chaplain Services Confidential Conversations Grief/Crisis Care Professional referrals Emotional/Spiritual Support

2.1.2 Family Coaching • •

Family Care Chaplain Services 2

• • • • •

Marriage Enrichment/Counseling Pre-Marital Coaching Family & Parenting Resources Important Life Events Dave Ramsey Financial Peace

2.1.3 Culture Care • • • •

Covenant Core Values Integration Character Development Leadership Development Recognition & Awards Culture Care

Covenant Cares is a unique service that demonstrates our company’s commitment to our people being our best asset. Chaplain covenantcares@ctest.com 832-500-3278

2.2 Brother’s Keep Initiative

The purpose of the program is to empower employees in being advocates for safety-focused decisions for themselves as well as others while driving, working at a customer jobsite and/or working at a customer's company facility. The following rules and principles behind the program apply to all Employees who: • •

Drive an owned or leased company vehicle or; Receive a PVA for the use of their vehicle for work purposes.

Brother Keeper’s Acknowledgments: • • • •

As a Brother's Keeper, I take responsibility to advise my Supervisor of my location, even when it may change. As a Brother's Keeper, I take responsibility to care for myself and my co-workers by using sound judgment regarding hazardous driving and working conditions. As a Brother's Keeper, I take responsibility to give positive reinforcement and recognition. As a Brother's Keeper, I take responsibility to be accountable for doing the right thing by upholding the "Covenant Core Values".

2.3 Education Assistance Program

Covenant strongly encourages employees to pursue additional formal education to enhance knowledge and skills, thus improving potential for future opportunities. It is the policy of Covenant to provide financial assistance to employees who are interested in pursuing his/her education and has been employed by Covenant for a minimum period of 12 months, prior to commencing the course of study. The policy is discretionary and provides eligible employees with 50% reimbursement for costs, up to established limits, for courses approved by Covenant and showing proof of successful completion of approved courses. The course or degree program must be applicable to the employee’s present position and duties, and/or is a direct benefit to Covenant, as well as the employee. Education course includes but is not limited to; 3

further part-time and distance learning education courses leading to the award of a recognized academic or vocational qualification, from a recognized educational institution. Where an employee ceases to be employed by Covenant for any reason while completing the education course or within 2-year period after the completion of the course or degree, the employee will be required to repay Covenant, in accordance with the following scale: • • •

Up to 12 months from the date of the relevant reimbursement date – 100% of the costs reimbursed by Covenant; From 12 months to 18 months from the date of the relevant reimbursement date -50% of the costs reimbursed by Covenant; and From 18 months to 24 months from the date of the relevant reimbursement date -25% of the costs reimbursed by Covenant.

If Covenant, in its absolute discretion, decides to pay any education costs on behalf of an employee in advance, and the employee commences, but later withdraws from the education course, the employee agrees to immediately repay to Covenant that part of the education costs which have been paid by Covenant at the date of the employee’s withdrawal from the education course. The employee agrees that any debt that the employee is due to repay to Covenant may be deducted from any monies owed to the employee by Covenant on the date of termination of their employment. If no such monies are owed to the employee, the employee agrees to repay the debt immediately. The policy is a broad guideline developed by Covenant to assist with organizational decisions. The procedures detail how the policy should be applied. It is not possible to address every situation or circumstance, and decisions regarding this benefit will be made on a case-by-case basis. Covenant will make every effort to ensure that all employees are treated fairly and equitably. Please contact the Human Resources Department with any questions regarding the Education Assistance Program.

SECTION: 3-BENEFITS As part of our commitment to our employees and their well-being, our company provides employees with a variety of benefit plans. Although we introduce employees to these plans in this section, we cannot provide the details of each plan here. Employees should receive official plan documents for each of the benefit plans that we offer. Those documents (along with any updates that we give employees) should be the primary resource for information about the benefit plans. If an employee sees any conflict between those documents and the information in this Employee Handbook, the official plan documents are what he/she should rely upon.

3.1 Benefit Eligibility

Full-time employees are eligible to participate in the medical/dental/vision/life insurance plans effective the first of the month following date of hire. If the employee begins his/her full-time employment on the 1st of the month he/she will be eligible for benefits effective his/her hire date. Part-time employees (who work less than 30 hours per week) are not eligible for benefits.

3.2 Medical Coverage

Employees must enroll for coverage within thirty (30 days) of employment or an eligible qualifying event. Complete benefit packets are provided at new hire orientation. Additional packets may be obtained by contacting your local Human Resources Coordinator. Although the Company pays a significant portion of employee’s insurance premiums, employees are responsible for the employee portion. Information about the current medical plan and premiums is available in the Benefit Guide Handbook.

3.3 Qualifying Event

It is the employee’s responsibility to list only dependents that are eligible for coverage as defined by the plan guidelines. If a covered dependent becomes either eligible or ineligible based on the plan rules, it is the employee’s responsibility to notify the Human Resources Department. Employees must notify the Human Resources Department of any changes in status within thirty (30) days of the status change. This includes: dependent status change, address changes, divorce, marriage, birth, adoption, reduction in work hours or any other change that could affect benefit plan eligibility.

3.4 Benefit Coverage on Leave

When leave for Family Medical Leave (FMLA), Pregnancy Discrimination Leave (PDL), Americans with Disabilities Act, (ADA) Military and Workers' Compensation leave is approved, the employee will be permitted to maintain health benefits during that leave for a period of 60 days from the day the leave began and at Covenant’s expense; excluding 401(K) loans or any other outstanding loan(s). If the employee needs to continue his/her leave, he/she will be able to continue their benefits provided, premium benefit payments are made to the Human Resources Department. Benefit premium payments are due by the 1st of the new month. When an employee returns from his/her leave, he/she will return to the same benefit coverage as before the leave begin. Benefits will terminate on the last day on the month of the event of termination, retirement, unpaid absence or covered leave.

3.5 Termination of Coverage During Leave

Coverage may be terminated during a leave if an employee's payment is more than 30 days late, provided the employee has received at least 15 days' written notice before the coverage is scheduled to end, in any of the following scenarios: (1) the employee notifies the employer that the employee is not returning to work; (2) the employer terminates the plan; or (3) the employee does not return to work. If coverage terminates during an employee's leave, the employee may experience a qualifying event under COBRA. The effective date for the termination of benefits will be retroactive to the 1st day of the change and the benefit coverage will be the first day and month the employee was responsible for his/her payments.

3.6 Returning from Leave

When an employee returns from his/her leave, he/she will return to the same benefit coverage as before the leave begin. Employees may continue benefits coverage when on the following types of authorized leave (FMLA, PDL, ADA, Military Leave of Absence and Workers’ Compensation), each of which is described in the sections that follow.

3.7 Eligibility of Personal Leave

All full-time employees employed for a minimum of 90 days are eligible to apply for an unpaid personal leave of absence. Job performance, absenteeism and departmental requirements all will be taken into 5

consideration before a request is approved. Approvals of the immediate supervisor, Department Manager and the Human Resources Department are required.

3.7.1 Unpaid Time Off

Covenant may consider an unpaid, personal leave of absence without pay for up to a maximum of 30 days. If unpaid time off is approved the employee will be responsible for continuing with any payroll deductions i.e. benefit premiums, child support orders, 401k loan repayments and any other deductions administered by the Payroll Department. Requests for unpaid personal leave may be denied or granted by Covenant for any reason and are within the sole discretion of Covenant. Covenant will approve non-paid paternal leave to employees following the birth of an employee’s child or the placement of a child with an employee in connection with adoption or foster care. The purpose of non-paid paternal leave is to enable the employee to care for and bond with a newborn or a newly adopted or newly placed child. The company will maintain all benefits for employees during the non-paid paternity leave period, just as if they were taking any other company non-paid leave; however, the employee will be required to make timely monthly benefit premium payments to maintain coverage. When an employee’s leave is approved he will be able to continue his benefit coverage, provided premium benefit payments are made to the Human Resources Department. Benefit premium payments are due by the 1st of the new month.

3.7.2 Employee Requirements

An eligible employee should submit a request in writing to his/her immediate supervisor. The requesting employee will be asked to acknowledge in writing his or her understanding that all requests for personal leaves are not granted.

3.7.3 Supervisor Requirements The immediate supervisor will: • • • •

Review the request taking workload scheduling and departmental requirements into consideration. Make a recommendation to and obtain a decision from the department director/manager. Submit the department-level decision to the Human Resources Department for final approval. Return a decision to the employee as soon as feasible after receipt of the written request.

3.7.4 Return to Work/Extension of Leave

An employee is required to return from the unpaid personal leave on the originally scheduled return date. If the employee is unable to return, he/she must request an extension of the leave in writing. If Covenant declines to extend the leave, the employee must then return to work on the originally scheduled return date or be considered to have voluntarily resigned from his or her employment. Extensions of leave will be considered on a case-by-case basis.

3.8 Short-Term Disability (STD) and Long-Term Disability (LTD) Covenant provides full-time employees with employer paid STD and LTD disability at no cost to the employee. STD and LTD insurance pay a percentage of your salary if you become temporarily disabled, meaning that you are not able to work for a short period of time due to sickness or injury (excluding onthe-job injuries, which are covered by workers’ compensation insurance). 6

All employees are subject to a 90-day waiting period. STD/LTD will take effect the first of the month following the completion of the waiting period.

3.9 Employee Assistance Program (EAP)

Covenant provides confidential and voluntary assistance through its Employee Assistance Program (“EAP”) to all employees and their family members who may be faced with dynamic challenges. For the welfare of employees as well as for effective business operations, Covenant encourages its employees to take advantage of this valuable benefit of employment with Covenant. Covenant’s EAP plan is 100% employer paid. Covenant provides a full range of counseling and referral services including, but not limited to, the following: • • • • • •

Individual, family, and martial concerns; Stress and job-related pressures; Child and domestic abuse; Chemical and alcohol dependency assessment; Financial and legal assistance; and Identity theft services.

Covenant encourages employees with a drug and/or alcohol problem to seek assistance prior to becoming subject to disciplinary action for violating the Drug and Alcohol Policy or any other Covenant policy. Employees may confidentially contact EAP for a self-referral; however, the employee is still required to comply with Covenant’s Drug and Alcohol Policy and will be subject to the disciplinary provisions if found to be in violation of the policy. Voluntary participation in the EAP does not jeopardize job security or promotional opportunities. However, it does not excuse the employee from following company policies and procedures or from meeting required standards for satisfactory job performance except where specific accommodations are required by law.

3.10 Consolidated Omnibus Budget Reconciliation Act (COBRA)

The Consolidated Omnibus Budget Reconciliation Act (COBRA), as amended, gives employees, and their qualified beneficiaries, the opportunity to continue health insurance coverage under Covenant’s health plan when a “qualifying event” would normally result in the loss of eligibility. Some common qualifying events are: • • • • • • •

Resignation Termination of employment Death of an employee Reduction in an employee’s hours Leave of absence Divorce or legal separation and A dependent child no longer meeting eligibility requirement

Under COBRA, the employee or beneficiary pays the full cost of coverage after a qualifying event at Covenant’s group rates plus an administration fee for continuation coverage. Covenant provides each eligible employee with a written notice describing rights granted under COBRA when a qualifying event 7

occurs. The notice contains important information about the rights and obligations of the employee and/or beneficiary(ies). Failure to timely comply with the notice may result in a loss of insurance coverage. It is imperative that each employee keep Covenant apprised of the status of his/her family life and age of dependents, if elected. COBRA coverage will be effective the first of the month following date of termination. (Refer to the COBRA SPD for additional information).

3.11 401(k) Retirement Plan

Covenant’s 401K participation is available immediately upon hire. The Company provides a discretionary match of up to 100 percent of the employee’s contributions up to 3%, and 50 percent of the next 2% the employee contributes. Vesting in the Company’s plan is immediate. Currently Covenant matching is applied on a quarterly basis. Employee Contribution

Covenant Contribution

3.5%

3.12 Paid Time Off

3.12.1 Full-Time Non-Exempt

Covenant provides Paid Time Off (PTO) for full-time non-exempt employees who have been employed for 90 days or longer. PTO is accrued on a per pay date basis. You must be actively employed on the pay date to receive the accrual. For example, all active non-exempt employees will earn the corresponding PTO accrual each pay date, based on years of service.

• • • •

Years of Service

Annual / Pay date Accrual Rates

0–5

96 hours / 3.69 hours

6 – 10

136 hours / 5.23 hours

11+

176 hours / 6.77 hours

Employees eligible to take PTO are permitted to be advanced up to 40 hours of PTO with management approval. Any time taken off past negative 40 hours will be unpaid. All scheduled PTO must be approved in advance by the employee’s manager. If employment is terminated with a negative PTO balance, the balance will be deducted from the employee’s final paycheck, in accordance with state and local laws. Those who are employed a minimum of 90 days will be paid their accrued PTO balance, up to a maximum of 40 hours, unless governed by local and state laws.

• • •

Paid Time Off (PTO) accruals must be used in the year it is earned and do not carry over from year to year. Unused PTO hours will be forfeited at year end. Negative balances will roll over to the following year and will be recouped with future PTO accruals. Please provide as much advance notice as possible; preferably 30 days’ notice. PTO may be denied at manager’s discretion and based on business necessity.

3.12.2 Full-Time Salaried Exempt

All PTO must be approved by the employee’s manager and department head. All salaried exempt employees must receive prior approval in order to take more than one week of PTO at a time and will not be permitted to take more than two weeks sequentially, due to business necessity.

3.13 Donating Accrued PTO

Employees are permitted to donate accrued PTO, up to 40 hours per year, to another employee for whom the PTO policy applies. Employees who donate time must have a sufficient balance and will not be permitted to exhaust their balances given the possibility that he/she may experience their own personal need for time off. Employees cannot borrow against future PTO to donate. Employees who receive donated PTO may receive no more than 480 hours (12 weeks) within a rolling 12month period. Use of donated PTO may be approved when there is evidence of need for additional paid leave time. Consideration is given when one or more of the following medically-related circumstances is determined to exist for the employee such as: • • • •

Has undergone major surgery for a health condition; Requires inpatient, hospice, or residential health care; Is experiencing a medical condition that is life threatening, such as cancer; or Is caring for an immediate family member who is experiencing a medical condition that is life threatening, or who is receiving major surgery for a health condition, and who is not receiving round-the-clock care by medical professionals.

3.14 Use of Accrued PTO An employee who is taking FMLA leave because of the employee's own serious health condition or the serious health condition of a family member must use all PTO prior to being eligible for unpaid leave. Disability leave for the birth of the child and for an employee's serious health condition, including workers' compensation leave (to the extent that it qualifies), will be designated as FMLA leave and will run concurrently with FMLA. For example, if an employer provides six weeks of pregnancy disability leave, the six weeks will be designated as FMLA leave and counted toward the employee's 12-week entitlement. The employee may then be required to substitute accrued (or earned) paid leave as appropriate before being eligible for unpaid leave for what remains of the 12-week entitlement. An employee who is taking leave for the adoption or foster care of a child must use all PTO, personal or family leave prior to being eligible for unpaid leave. An employee who is using military FMLA leave for a qualifying exigency must use all PTO prior to being eligible for unpaid leave. An employee using FMLA military caregiver leave must also use all PTO prior to being eligible for unpaid leave. 9

3.15 Holidays

Covenant’s observed holidays may be modified on an annual basis. Managers may move a holiday based on work necessity or due to local conditions, provided timely notice to the Payroll and Human Resources Department is made (by the Monday of payroll week). Any modified schedule due to a holiday falling on a weekend will also be communicated on a yearly basis. Additional holidays may be determined at the discretion of Covenant and will also be communicated on a yearly basis. (Refer to the Annual Holiday Policy for additional information).

3.15.1 Scheduled Company Holidays

The following holidays are generally observed on an annual basis: • • • •

Memorial Day Independence Dy Thanksgiving Day Christmas Day

3.15.2 Guidelines for Holiday Pay

Holidays are paid at base rates for regularly scheduled workdays and are not included in regular hours for purposed of calculating overtime. Employees are not paid for holidays that occur during any other leaves of absence, including FML, PDL, Short-Term Disability, Workers’ Compensation, or other unpaid leave. In order to be eligible for Holiday Pay, the employee must be at an active, full-time status for a minimum of 90 days.

3.15.3 Working on a Holiday

Employees required to work on a company holiday due to business needs will be provided with the opportunity to take the day off at another point during the calendar year (with manager approval); but will be paid for the holiday on the regularly scheduled pay date. The day taken off at a later date is to be considered paid. Covenant does not float holiday pay. In the event a recognized Covenant holiday occurs during an employee’s approved PTO, the employee will receive holiday pay and his/her request for PTO for the date will be canceled.

3.16 Jury Duty

Covenant provides a maximum of 5-days jury duty pay, up to 8 hours per day. Jury duty is paid at base rates and is not included in regular hours for overtime purposes. Additional income-protected time away from the workplace for this purpose will be considered on a case-by-case basis. Upon receipt of notification from the state or federal courts of an obligation to serve on a jury, the employee should notify his/her supervisor. The employee is required to provide copies of the subpoena or jury summons their supervisor. Time spent serving jury duty must be entered on the employee’s time card, using the “JURY” pay code. Hours coded as Jury Duty must be accompanied by appropriate backup documentation. The jury duty release listing dates and hours served, must be provided to the Payroll Department on the Friday before the following pay date. Employees who are dismissed early from jury duty, more than 4 hours before their work shifts, will be required to report to work.

Employees appearing in their own case as a plaintiff or defendant or for a non-subpoenaed or voluntary court appearance will not receive jury duty pay. Paid Time Off (PTO) can be used to supplement the employee’s pay, if approved, or the time off will be considered unpaid.

3.17 Bereavement The Company recognizes that bereavement is a difficult period for an employee, and every effort will be made to ensure that the employee is able to attend to necessary family matters without loss of earnings. All employees at an active, full-time status for a minimum of 90 days are eligible to be paid up to 3 days paid bereavement leave following the death of an immediate family member. If there is a need for travel, 2 additional days paid bereavement leave are offered, upon manager approval. Bereavement will be paid up to 8 hours per day. Bereavement is paid at base rates and is not included in regular hours for purposes of calculating overtime. Members of the employee’s immediate family and that of your legal spouse include only the following: • •

Immediate Family (spouse, children, etc.); and Extended Family (parents, siblings, aunt/uncle, grandparents, etc.).

If the death occurs in the family while the employee is on PTO; his/her PTO may be rescheduled, and bereavement pay may be substituted. Additional time off will require a supervisor’s approval and the time off may be without pay. Exceptions to this policy will require the approval of the Human Resources Department. Time for which bereavement is requested must be entered on the employee’s time card, using the “BEREAV” pay code. Hours coded as Bereavement on the employee’s timecard must be accompanied by appropriate backup documentation, providing the dates of bereavement needed as well as relation to the deceased. This documentation must be provided to the Payroll Department timely.

SECTION: 4-LEGAL COMPLIANCE 4.1 At Will Employment

Covenant is an “At Will” employer. This means your employment is for an indefinite period of time and it is subject to termination by you or Covenant Testing Technologies, LLC, with or without cause, with or without notice, and at any time. Nothing in this policy or any other policy of Covenant shall be interpreted to conflict with or to eliminate or modify in any way, the at will employment status of Covenant Testing Technologies, LLC employees.

4.2 Equal Employment Opportunity

Covenant is an Equal Opportunity Employer and prohibits discrimination and harassment of any kind. Covenant is committed to the principle of equal employment opportunity for all employees and to providing employees with a work environment free of discrimination and harassment and to providing equal employment opportunities to employees and applicants, without regard to race, color, religion, sex (including pregnancy), national origin, age, disability, veteran status, or any other basis that is protected under applicable federal, state, or local laws. The policy of equal employment opportunity, anti-harassment, and anti-discrimination applies to all aspects of the relationship between Covenant and its employees, including, but not limited to: 11

• • •

Benefits; Wages and salary administration; and Promotional, training and educational opportunities.

All managers and supervisors will be responsible for the dissemination of this policy, as well as monitoring equal employment opportunity practices within their departments, keeping abreast of Covenant’s employment policies and procedures. The Human Resources Department is responsible for overall compliance and will maintain personnel records in compliance with applicable laws and regulations.

4.3 Immigration Reform and Control Act (Form I-9)

The Federal Immigration Reform and Control Act (“IRCA”) requires employers to hire only individuals who may legally work in the United States—either U.S. citizens or foreign citizens who have the necessary authorization. To comply with the law, Covenant must verify the identity and employment authorization of each person they hire by completing and retaining Form I-9, Employment Eligibility Verification. Employers who hire or continue to employ individuals knowing that they are not authorized to be employed in the United States may face civil and criminal penalties.

4.4 Employee Classification

The term “employee” includes only those individuals paid directly from Covenant’s payroll, and for whom Covenant may be required to report wages and other compensation to local, state and federal taxing authorities.

4.4.1 Full-Time

Full-time denotes employees hired to work their regularly scheduled shift, typically 32 or more hours per week. Full-time regular employees can be exempt or non-exempt.

4.4.2 Part-Time

Part-time denotes employees hired to work less than 40 hours per week on a regular basis. Part-time employees can be exempt or non-exempt and are not classified as a temporary employee. In general, employees who are regularly scheduled to work 32 or more hours per week are eligible to participate in Covenant’s employee benefits programs. Some benefits are adjusted on a pro-rata basis to account for the employees' reduced working hours. (Refer to the Summary Plan Description or plan document for each benefit plan for specific eligibility information).

4.4.3 Temporary

Temporary denotes employees are hired to work part-time or full-time on Covenant’s payroll for the duration of specific projects or assignments. Temporary employees are not eligible for any of the benefits offered by Covenant, such as, but not limited to holiday pay, bereavement pay, or any other paid time-off or benefits, unless required by law. Temporary assignments generally do not extend beyond a 12-month period, unless approved by a member of the Executive Team. Employment beyond any initial period does not necessarily imply a change in employment status.

4.4.4 Contract

Contract employees are employees of Covenant who have been contracted for services or self-employed individuals with which Covenant has contracted directly. All employees — whether full-time, part-time, temporary, or contract – are classified as exempt or nonexempt for overtime and minimum wage requirements.

4.4.5 Exempt Status

An employee is exempt if determined to be an executive, administrative, or professional employee or outside sales representative as defined by the Fair Labor Standards Act (“FLSA”). Employment beyond any initial period does not necessarily imply a change in employment status. Exempt employees are not subject to federal and state overtime requirements.

4.4.6 Non-Exempt Status

Non-exempt employees are entitled to overtime time pay of one-and-one-half times their regular rate for hours worked more than 40 hours in any workweek.

4.5 Health Insurance Portability and Accountability Act (HIPPA)

HIPPA provides the Standards for Privacy of Individually Identifiable Health Information Privacy Rule was established. The Rule requires appropriate safeguards to protect the privacy of personal health information and sets limits and conditions on the uses and disclosures that may be made of such information without patient authorization. The Rule also gives patients’ rights over their health information, including rights to examine and obtain a copy of their health records, and to request corrections. Covenant is complaint with HIPPA and the Privacy Rule. (For more information regarding HIPPA and the Privacy Rule, please Refer to Covenant’s Privacy Policy for additional information).

4.6 Americans With Disabilities Act

Covenant is committed to making all reasonable efforts to ensure that its facilities, programs and services are accessible to, and usable by the people we serve, including those with disabilities. This policy reflects our commitment to comply with the Americans with Disabilities Act (“ADA”) and other applicable laws and regulations. Covenant will not discriminate based on a disability or impairment and will not exclude persons with disability or impairment from reasonable access to any facility or from participation in any program or activity. It is our goal to provide equal access to all and to treat everyone with dignity and respect, so long as the employee can perform essential functions of the job.

4.6.1 Reasonable Accommodations

Covenant will provide reasonable accommodations to individuals with qualified disabilities, provided that the employee has made Covenant aware of his or her disability and such accommodation does not constitute an undue hardship on Covenant. It is the employee’s responsibility to request an accommodation. Covenant will make every effort to provide a reasonable accommodation that is satisfactory to the employee; however, the accommodation provided may not be the accommodation the employee requested or prefers.

Employees are encouraged to contact Human Resources to request an accommodation. All employees are always required to comply with safety policies. Reasonable accommodations may not be available for certain positions based on the duties of the job, as such accommodations may pose a threat to the safety of the employee requesting the accommodation or the safety of others. Employees or applicants who believe that there has been a violation of Covenant’s ADA policy, or any other applicable law relating to a person with a disability, should notify Human Resources. Human Resources will investigate each complaint. All employees are expected to cooperate with any on-going investigation.

4.6.2 ADA Leave

Covenant will accommodate an employee’s request for leave when the employee does not qualify for Family Medical Leave (FML) and/or the leave is non-workers ‘compensation related to a disability. The employee will be permitted up to 6-months of unpaid time off. The employee will be required to submit supporting medical certification documentation to substantiate the leave to the Human Resources Department.

4.7 Family Medical Leave Act (FMLA)

Employees who have been employed for at least one year as of the date leave begins and who have worked at least 1,250 hours during the preceding 12-month period are eligible for up to 12 work weeks (480 hours, unless superseded by state law) of FMLA during a 12-month period for any of the following reasons: • • • •

The birth of a child and in order to care for that child. The placement of a child for adoption or foster care and to care for the newly placed child. To care for a spouse, child or parent with a serious health condition. A serious health condition that renders the employee incapable of performing the function of his/her job.

4.7.1 FMLA Notice

Covenant posts the mandatory FMLA Notice, and upon hire provides all new employees with notices, required by the U.S. Department of Labor (DOL) on Employee Rights and Responsibilities under the FMLA in each break room.

4.7.2 Notice of Leave

Generally, employees must give 30 days’ notice of the need for FMLA leave, when the leave is foreseeable. When not possible to provide 30 days’ notice, an employee must notify the Human Resources Department as soon as possible and, generally, follow Covenant’s FMLA Notice of Leave policy. The employee must state the reason for the leave, the duration of the leave, the starting and ending dates of the leave, if applicable. When the leave is foreseeable, an employee is expected to notify the Human Resources Department when possible, generally within 1-2 business days of learning of the leave. If circumstances change that will affect the length of the employee’s FMLA leave, the employee must notify Covenant within 2-3 business days.

An employee requesting leave is not required to notify his/her supervisor or any other member of management of the reason for their leave; however, the employee should discuss the length of their absence with their supervisors, especially as it may pertain to current and ongoing work assignments.

4.7.3 Medical Certification Covenant reserves the right to request recertification for the serious health condition of the employee or the employee’s family member no more frequently than every 30 days unless circumstances have changed significantly, or if the employee seeks an extension of his or her leave. Otherwise, Covenant may request recertification for the serious health condition of the employee or the employee’s family member every six months in connection with an FMLA absence.

4.7.4 Intermittent or Reduced Work Schedule Leave

FMLA leave may be taken in separate blocks of time for a single illness or injury. A reduced leave schedule reduces an employee’s usual number of working hours per workweek, or hours per workday. It is a change in the employee’s schedule for a short period of time, normally from full-time to part-time due to a medical necessity. Covenant may temporarily transfer an employee to an available alternative position with equivalent pay and benefits if the alternative position would better accommodate the intermittent or reduced schedule, in instances of when leave for the employee or employee's family member is foreseeable and for planned medical treatment, including recovery from a serious health condition or to care for a child after birth, or placement for adoption or foster care. On a basis that does not discriminate against employees on FMLA leave, Covenant may require an employee on FMLA leave to report periodically on the employee’s status and intent to return to work.

4.7.5 Sharing FMLA with Spouse

If both spouses work for Covenant and each elect to take leave for the birth of a child, adoption or placement of a child in foster care, or to care for a parent (but not a parent in-law) with a serious health condition, the spouses may only take a combined total of 12 weeks of leave. If spouses both work for Covenant and each chooses to take leave to care for a covered injured or ill service member, the spouses may only take a combined total of 26 weeks of leave. FMLA may be taken on an intermittent or reduced work schedule if medically necessary. The 12-month period is calculated by using the rolling 12-month period measured forward from the date an employee uses the FMAL leave. When state laws provide greater family leave rights, covered employees are eligible for family leave in accordance with such state laws. Employees with questions about which illnesses are covered under this FMLA policy or under Covenant's PTO policy are encouraged to consult with the Human Resources Department.

4.8 Covered Service Member To provide care for an immediate family member who is a “Covered Service Member” undergoing medical treatment, or otherwise temporarily disabled, due to a serious injury or illness incurred in the line of duty while on active duty in the U.S. Armed Forces. (Refer to Military Caregiver Leave for additional information).

To manage family affairs while an employee’s immediate family member of the U.S. Military Reserves or National Guard is on active military duty, or has been called to active duty, in support of a U.S. Military contingency operation. (Refer to Qualifying Exigency Leave Policy for additional information).

4.8.1 Medical Caregiver Leave (FMLA) military caregiver leave allows an eligible employee leave to care for an immediate family member who is the spouse, son, daughter, parent or next of kin of a covered service member, or a veteran who is undergoing medical treatment, recuperation, therapy, or otherwise temporarily disabled due to serious injury or illness incurred in the line of duty while on active duty in the U.S. Armed Forces, the National Guard or Reserves, to take up to a total of 26 work weeks of unpaid leave during a single 12-month period, in which the leave is measured forward, to provide care for the service member or veteran.

4.8.2 Medical Qualifying Exigency Leave

Qualifying Exigency Leave allows up to 12 weeks of leave to be granted to an eligible employee who is the spouse, son, daughter, or parent of a service member who is placed on active duty or has been notified of an impending call or order to active duty so that the eligible employee may attend to any of the following qualifying exigencies: • • • • • • •

Family preparations resulting from a short-notice of deployment; Military events and related activities; Child care and school activities affected by the deployment; Financial and legal arrangements affected by the deployment; Counseling related to the deployment; Time with service member during rest and recuperation leave; and Additional activities related to the active duty or call to active duty agreed to by employee and employer.

4.8.3 Health and Welfare Benefits

While on FMLA leave, Covenant will maintain the employees and dependents insurance coverages (i.e., medical, dental, vision, life insurance, short-term disability insurance). The employee on leave must continue to pay the employee portion of the applicable premium(s), by submitting a payment, either in person or by mail to the Human Resources Department. If the payment is more than 30 calendar days late, Covenant reserves the right to terminate the employee’s coverage. The Human Resources Department will provide a written notice to the employee at least 15 calendar days prior to the employee’s loss of coverage if a payment is not received. Covenant will require the employee to reimburse Covenant the amount it paid for the employee's health insurance premium during the leave period if the employee chooses not to return to work for reasons other than a continued serious health condition of the employee or the employee's family member or a circumstance beyond the employee's control.

4.8.4 Fitness for Duty Certification and Testing

Employees returning from FMLA, Short Term Disability and/or Worker’s Compensation leave, will be required to provide a fitness for duty (FFD) clearance from his/her health care provider. This requirement will be included in Covenant’s response to the FMLA request. Generally, an employee who takes FMLA leave will be able to return to the same position or a position with equivalent status, pay, benefits and other employment terms unless the health care provider places restrictions on the employee’s ability to 16

perform his assigned work duties. The position will be the same, or one which is virtually identical in terms of pay, benefits, and working conditions, based on the healthcare provider’s medical assessment. Covenant may choose to exempt certain key employees from this requirement and not return them to the same or similar position.

4.9 Leave Financial Obligations

Employees on any type of leave with 401(K) loans or any outstanding loan (s) with Covenant will have his/her loans suspended for the duration of their leave. Upon returning from leave, the outstanding loan balance will be re-amortized, and the remaining terms of the loan(s) will be extended by the period of the leave.

4.10 Pregnancy Disability Leave (PDL)

An employee must be “disabled by pregnancy,” which means that a health care provider must certify that the employee's pregnancy or a related medical condition makes her unable to perform one or more of the essential functions of her job, without undue risk to herself, the successful completion of her pregnancy, or to others, or that she is suffering from severe morning sickness, or that she needs to take time off for prenatal care.

4.10.1 Length of PDL

A qualified employee must be provided a maximum of four months of PDL leave, as needed, for the duration of time an employee is disabled by pregnancy. Four months leave is defined as the equivalent of the number of days an employee would normally work in four months.

4.10.2 Reasonable Accommodations

An employer must provide a reasonable accommodation to an employee affected by pregnancy, childbirth or related medical condition (including lactation), if the employee so requests, based on the advice of her health care provider. This may include a temporary transfer to an alternative job that better meets the employee's need, with equivalent pay and benefits if: • •

The employee's request is based on the certification of her health care provider that a transfer is medically advisable; and The transfer can be reasonably accommodated by Covenant (the employer is not required to create a job or transfer another employee).

4.10.3 Intermittent or Reduced Work Schedule

If a woman's health care provider determines that it is medically advisable for the employee to take intermittent leave or have a reduced work schedule based on foreseeable planned medical treatment, then Covenant may require the employee to temporarily transfer to an alternative position that better accommodates the schedule if it has equivalent pay and benefits. Transfer may include temporarily altering an existing position to accommodate the employee's need. Covenant and the employee will together identify and implement any reasonable accommodation.

4.10.4 Returning to Full Duty

After a PDL leave or transfer to an alternate job, an employee is required to be returned to the same position she held prior to her leave or transfer; provided Covenant has received supporting medical documentation by the employee’s health care provider releasing the employee to full duty.

The employee may be reinstated to an available comparable position only if the same position is no longer available due to business reasons unrelated to the PDL leave or transfer, such as a workforce reduction or layoff. The comparable position will be virtually identical in terms of pay, location, job content, and promotional opportunities; involve the same or substantially similar duties; and entail substantially equivalent skill, effort, responsibility, and authority. An available position is one that is open on the employee's scheduled date of reinstatement, or within 60 calendar days.

4.10.5 Employee Benefits Under PDL

Covenant is required to pay for group health coverage for an employee on PDL on the same condition’s coverage is provided when the employee is not on leave. An employee on PDL is entitled to accrual of seniority and to participate in other benefit plans to the same extent and under the same condition and FMLA. An employee may elect, at her option, to use any accrued time off that the employee is otherwise eligible to take during the unpaid portion of her PDL. An employee must provide, at minimum, a verbal notice of her need for pregnancy disability leave, reasonable accommodation or transfer and must notify Covenant of the anticipated timing and duration of the leave, reasonable accommodation or transfer. If the need for leave, reasonable accommodation or transfer is foreseeable, the employee must provide 30 days advance notice; otherwise the notice must be given as soon as possible.

4.10.6 Employee’s Responsibility Under PDL

When the need for leave, reasonable accommodation, or transfer is foreseeable, the employee shall consult with the Human Resources Department and make a reasonable effort to schedule any planned medical treatment in a manner which would minimize disruption to Covenant’s operation, subject to the approval of any health care provider.

4.10.7 Medical Certification, Recertification and Return to Work Requests for PDL

As a condition for granting a pregnancy disability leave or transfer, Covenant will require medical certification from the employee, as is required when an employee requests FMLA or ADA. If a certification is not received, the leave will be subject to Covenant’s attendance policy and the employee will not be in a job protected status while on leave nor have a right to return to work. The certification should provide only the following: • • • •

•

The date on which the employee became disabled due to pregnancy or the date on which a reasonable accommodation or transfer became medically advisable. The probable duration of the period(s) of disability. The date on which the need for reasonable accommodation or transfer became medically advisable and the estimated duration of the reasonable accommodation or transfer. A statement that, due to the disability, the employee is unable to perform one or more of the essential functions of her position without undue risk to herself, to the successful completion of her pregnancy, or to other persons, or that a reasonable accommodation or transfer is medically advisable. A description of the requested reasonable accommodation or transfer.

A medical recertification may be requested upon expiration of the time period provided by the health care provider. As a condition of an employee's return from PDL or transfer, Covenant may require that 18

the employee obtain a release to return to work from her health care provider stating that she is able to resume her original job duties. Questions concerning PDL, intermittent or modified work should be directed to the Human Resources Department.

4.10.8 PDL Notice Covenant posts the mandatory FMLA and PDL Notice and upon hire provides all new employees with notices required by the U.S. Department of Labor (DOL) on Employee Rights and Responsibilities under FMLA and PDL in each break room.

4.11 Lactation Accommodations

Covenant complies with applicable federal and state laws and the Patient Protection and Affordable Care Act (“PPAC”) regarding breaks for nursing mothers. Generally, unless otherwise provided by law, Covenant will provide nursing mothers unpaid reasonable break time to express breast milk for a nursing child for one year after the child’s birth and each time the employee needs to express milk. The nursing mother will be provided a place, other than a bathroom, that may be used to express breast milk and that is shielded from view and free from intrusion by coworkers and the public. For more information, please contact your supervisor or Human Resources. You may also visit the U.S. Department of Labor website at https://www.dol.gov.whd/nursingmothers.

4.12 Uniformed Services Employment and Re-Employment Right Act (USERRA)/Military Employees taking part in a variety of military duties are eligible for benefits under USERRA. Such military duties include leaves of absence taken by members of the uniformed services, including Reservists, National Guard members for training, periods of active military service, and funeral honors duty, as well as time spent being examined to determine fitness to perform such service. Subject to certain exceptions under the applicable laws, these benefits are generally limited to five years of leave of absence.

4.12.1 Military Leave

Unless military necessity prevents it, or is otherwise impossible or unreasonable, an employee should provide Covenant with notice of the need for leave as far in advance as is reasonable under the circumstances. Written notice is preferred, but not required under the law or this policy. To request a temporary or extended military leave of absence, the employee should generally obtain a Request for Leave of Absence Form from the Human Resources Department. However, a written application is not required under the law or this policy. Human Resources will review and sign the Request for Leave of Absence Form, collect any applicable insurance premiums from the employee, generate other applicable documents, and process accordingly. Employees on temporary or extended military leave may, at their option, use any or all accrued PTO during their absence. When the employee intends to return to work, he or she must make application for reemployment to Human Resources within the application period set forth below. If the employee does not return to work, the supervisor must notify Human Resources so that appropriate action may be taken.

4.12.2 Benefits

If an employee is absent from work due to military service, benefits will continue as follows:

An employee on extended military leave may elect to continue group health insurance coverage for the employee and covered family members under the same terms and conditions for a period not to exceed 31 days from the date the military leave of absence begins. The employee must pay, per pay period, the premium normally paid by the employee. After the initial 31day period, the employee and covered dependents can continue group health insurance up to 24 months at 102% of the overall (both employer and employee) premium rate. The employee must elect his/her coverage and make the required payments to the Human Resources Department in a timely manner to continue your coverage. The group term life/AD&D insurance provided by Covenant will terminate the day the employee becomes active military. The group long term disability insurance provided by the Covenant will terminate the day the employee becomes active military. Voluntary supplemental life/AD&D insurance will terminate the day the employee becomes active military. Converting to an individual policy may continue voluntary dependent life insurance coverage. To exercise this conversion option, dependents must submit a written application and the first premium payment within 31 days immediately following the termination of coverage. Employees do not accrue PTO while on military leave of absence status.

4.13 401(k) Retirement

Upon re-employment, employees who have taken military leave will be credited for purposes of vesting with the time spent in military service and will be treated as not having incurred a break in service. Immediately upon re-employment, the employee may, at the employeeâ&#x20AC;&#x2122;s election, make any or all employee contributions that the employee would have been eligible to make had the employee's employment not been interrupted by military service. Such contributions must be made within a period that begins with the employee's re-employment and that is not greater in duration than three times the length of the employee's military service. Employees will receive a matching contribution from Covenant for such contributions.

4.14 Re-Employment

Upon an employee's prompt application for re-employment (as defined below), an employee will be reinstated to employment in the following manner depending upon the employee's period of military service: Less Than 91 Days of Military Service - In a position that the employee would have attained if employment had not been interrupted by military service; or if found not qualified for such position after reasonable efforts by Covenant, in the position in which the employee had been employed prior to military service. More than 90 days and less than 5 years of Military Service - In a position that the employee would have attained if employment had not been interrupted by military service or a position of like seniority, status and pay, the duties of which the employee is qualified to perform; or if proved not qualified after reasonable efforts by Covenant, in the position the employee left, or a position of like seniority, status and pay, the duties of which the employee is qualified to perform. 20

4.14.1 Employee with a Service-Connected Disability

If after reasonable accommodation efforts by the employer, an employee with a service-connected disability is not qualified for employment in the position he or she would have attained or in the position that he or she left, the employee will be employed in any other position of similar seniority, status and pay for which the employee is qualified or could become qualified with reasonable efforts by Covenant or if no such position exists, in the nearest approximation consistent with the circumstances of the employee's situation.

4.15 Application for Re-Employment

An employee who has engaged in military service must, in order to be entitled to the re-employment rights set forth above, apply for re-employment according to the following schedule:

4.15.1 Service Length

If service is less than 31 day and for the purpose of taking an examination to determine fitness for service, the employee must report for re-employment at the beginning of the first full regularly scheduled working period on the first calendar day following completion of service and the expiration of eight hours after a time for safe transportation back to the employee's residence. If service is for 31 days or more but less than 181 days - the employee must apply for re-employment with Human Resources, no later than 14 days following the completion of service. If service is over 180 days - the employee must apply for re-employment with Human Resources, no later than 90 days following the completion of service. If the employee is hospitalized or convalescing from a service-connected injury - the employee must apply for re-employment with Human Resources, no later than two years following completion of service.

4.16 Exceptions to Re-Employment

In addition to the employee's failure to apply for re-employment in a timely manner, an employee is not entitled to reinstatement as described above if any of the following conditions exist: • • •

Covenant’s circumstances have so changed as to make re-employment impossible or unreasonable re-employment would pose an undue hardship upon Covenant. The employee's employment prior to the military service was merely for a brief, non-recurrent period and there was no reasonable expectation that the employment would have continued indefinitely or for a significant period. The employee did not receive an honorable discharge from military service.

4.17 Benefits Upon Re-Employment

Employees reemployed following military leave will receive seniority and other benefits determined by seniority that the employee had at the beginning of the military leave, plus any additional seniority and benefits the employee would have attained, with reasonable certainty, had the individual remained continuously employed. An employee’s time spent on active military duty will be counted toward their eligibility for FMLA leave once they return to their job at Covenant. Additionally, upon re-employment, a covered employee will not be discharged except for cause for up to one year following re-employment.

SECTION: 5-EMPLOYMENT PRACTICES 5.1 Probationary Period

Covenant considers the first 90 days of employment as a probationary period. This time frame provides all new hires the opportunity for learning about your fellow employees, your manager and the tasks involved in your job position. We expect you will also become familiar with other relevant information about the Company, as well as Company rules and regulations. The employee’s supervisor/manager will work closely with new hires on all aspects of training, understanding and responsibilities during this introductory period. By completing the probationary period, an employee is not guaranteed continued employment for any term, as employment is considered “At-Will” at all times and is subject that various terms and conditions are met. Covenant makes every effort to ensure that its hiring procedures serves the purpose of recruiting the best employee fit for each open position. However, Covenant acknowledges that it is not always accurate in predicting performance or determining appropriate cultural fit. The probation period for new employees gives both the employee and Covenant enough time to determine whether the employee and employer relationship will benefit both parties. During the probationary period, the new employee will be given feedback and coaching to have the opportunity to learn their new job and improve in any area where necessary. At the end of the probationary period (or possibly before that), the supervisor will determine if the employee should be retained in the organization. This decision will be made by appraising the following criteria: • • • •

The skills, competencies and knowledge of the employee on the job; The employee’s progress on given assignments; Their reliability, trustworthiness and other relevant personality characteristics of the employee; and The employee’s relations and collaboration with subordinates, supervisors and peers.

An employee’s probationary period includes but not limited to the following: • • •

New employees who have completed the hiring process for a permanent position; Current employees who are promoted to a position of higher responsibility; and Current employees who require discipline for any reason.

5.2 Termination

If it is determined that the employee is not a match for employment with Covenant while on probationary period, the employee may be terminated without minimum prior notice mandated by law. The termination of employment during this period may be for cause or without cause, depending on the circumstances and the individual’s evaluation. Termination may occur before the ending of the probationary period. This may happen if the conduct of the employee is highly unsatisfying or if the employee engages in behavior that justifies a for-cause dismissal. Employees may still be dismissed for any reasons after the end of the probationary period.

5.3 Personnel Files

Employees are permitted to review his/her personnel file that is maintained by the Human Resources Department. It should be noted that personnel files maintained are the property of Covenant and are the official employment record of an employee. Current employees may view his/her personnel folder by contacting the Human Resources Department. Copies of items in the personnel folder may be requested.

5.4 Job Requisition Process

All new positions are classified as part of Covenant’s job requisition process. Employees' jobs also are reviewed for reclassification any time his/her weekly working hours or job descriptions are modified, as well as for additional criteria defined by federal and state wage and hour laws. The Human Resources Department is responsible for informing new hires of their: • • •

Employment classification; Eligibility under Covenant’s employee benefit plans; and Exempt or non-exempt status.

Such information is also communicated to employees on their acceptance of a new position within Covenant and when necessary due to a change in employment status, i.e., changing from full-time to parttime status. Employees should consult each benefit summary plan description for information regarding the classifications of employees eligible under the specific benefit program. Employees with any questions about their employment classification, benefits eligibility, or exemption status, or who believe their position has been misclassified, should contact the Human Resources Department.

5.5 Personnel Information It is the policy of Covenant to maintain personnel records for applicants, employees, and past employees to document employment-related decisions, evaluate and assess policies, and comply with government recordkeeping and reporting requirements. Employees have a responsibility to keep their personnel records up to date and should notify the Human Resources & Payroll Departments in writing of any personnel changes, including: • • • • • • •

Name Address Telephone number Marital status (for benefits and tax withholding purposes only) Number of dependents Addresses and telephone numbers of dependents and spouse or former spouse (for insurance purposes only) Persons to be notified in case of emergency

5.6 Employment Verification

Covenant frequently receives requests from outside organizations for employment verification. Any requests for salary information will only be given if a signed release is provided.

5.6.1 Verbal Employment Verifications

Only the following information concerning active or terminated employees will be verbally released by Covenant upon receipt of a telephone call for employment verification: 23

• • •

Dates of employment; Job title; and Employment status (i.e. active, leave, terminated)

5.6.2 Written Employment Verifications

Written requests for additional information related to credit evaluation, employment references, mortgage applications, etc. will be provided only if a release form is signed and returned to the Payroll Department by the employee or requesting entity. Employees will be notified, whenever possible, when the Company is required to provide personnel information by a subpoena, warrant, or other court order. All requests with an employee-signed release must be submitted to payroll@ctest.com. Written employment requests will typically be processed within 2-4 business days from the date the request is received. Only the corporate Human Resources and Payroll Departments are authorized to process verbal and written employment verifications.

5.7 Personal Appearance

Employees are expected to wear clothing that is appropriate for their job and work site. Clothing and appearance should be neat, clean, in good business taste, and shall not constitute a safety hazard. Covenant is a professional organization that interfaces with vendors, suppliers, visitors and customers, as such, employees shall make reasonable efforts to project a professional public image. Dress code may also depend on the nature of the work and safety issues.

5.7.1 Hygiene

Employees shall practice good personal hygiene, select attire that is clean and in good repair, and presents a professional image. Employees should also be considerate to others when wearing colognes, perfumes, body sprays, etc.

5.7.2 Grooming

Hair must be clean and completely restrained by a safety hat when operating machinery.

5.7.3 Appropriate Dress Code

Appropriate dress code includes, but is not limited to: • • • • • • • •

Business Casual relating to a style of clothing that is less formal than traditional business wear but is still intended to give a professional and businesslike impression; Proper Business attire to be worn in an office environment and meetings with clients or vendors. Skirts or dresses that reach at least mid-thigh; Professional slacks or pants that reach at least mid-calf; Blouses or tops that fully cover the shoulders, unless a sweater or jacket is worn; Shirts with collars; Turtlenecks; Professional open-toed or open-heel (i.e., sling-backs) shoes.

Designated Uniforms are to be worm when an employee’s position requires him/her to wear a specified uniform and Personal Protective Equipment (“PPE”) attire at all times. 24

5.7.4 Inappropriate Dress Code

Unacceptable Business Casual attire is clothing which could appear to be unprofessional and would include: • • • • • • • • • • • • • • • • • • • •

Jeans of any color Tennis or athletic shoes Tank tops, warm-ups, scrubs See-through or low-cut tops Athletic wear/wind suits Shorts or Capri pants above mid-calf Skirts above mid-thigh Tight fitting skirts or slacks and skirts made of lycra/spandex Pants that stop at or above the knee Warm-up/sweat suits Leotards and/or leggings Jeans with holes Flip flops Sheer or mesh clothing that exposes undergarments or midriffs Excessive visible body piercing Offensive tattoos Camouflage apparel Clothing with a printed message, slogan, political messages, picture or art depicting drugs, alcohol, smoking, sex, weapons, violence, or that is obscene or disrespectful; Dresses or blouses that are backless, strapless, or have spaghetti straps unless such garments are covered by another article of clothing (e.g. a sweater or jacket); Tank or muscle tops unless such garments are covered by another article of clothing (e.g., a sweater or jacket).

While Covenant practices “Casual Fridays,” when meeting with clients or other outside parties Business Casual should still be worn. If in doubt, do not wear the particular article of clothing. If you question whether it is appropriate, it probably is not. Questions pertaining to Covenant’s dress code policy can be directed to the Human Resources Department. Uniforms, safety attire and gear are an essential part of our industry standards and can be found under the Safety section of this handbook.

5.8 Housing Accommodations/Man Camps

When an on-site presence of an employee is deemed necessary to meet customer demands the Company may, at its option, provide adequate housing for the required employees on its business premises. In cases where the Company selects this option, the housing will be furnished for convenience, and the employee will be required to accept such housing as a condition of employment. Housing accommodations may be on a temporary basis for training and/or work assignments. Employee’s should have the understanding that housing provided by the Company is not permanent; unless otherwise approved by the CEO and Division Vice-President. The Employee also understands that upon termination, the Employee is required to vacate housing immediately.

Housing accommodations may be temporary such as hotels, apartments, on-site trailers, RVs, and/or rental property. Additional housing requirements: • • • • • • • • • • • • • • •

Employee agrees to allow the Company personnel to enter the property to inspect the premises, to exterminate for pests, to make repairs, or to show the premises to prospective employees. The Company will provide heat, electric and water. Any telephone, cable, internet or other service must first be approved through Covenant management. These additional services must be placed in the employee's name and be paid by the employee. Housing is a condition of employment and if you are no longer an employee of the Company, you will be expected to move out within 2 days. It is the Employee’s responsibility to keep the housing unit clean and properly maintained. Reimbursement costs for cleaning services will be deducted from the employee’s paycheck when the following is not conducted. (Refer to the Housing Agreement for further information). All housing units should be fitted with smoke and carbon monoxide detectors for safety and in accordance with the law. REMOVAL OR DISABLING OF THESE DEVICES IS FORBIDDEN. Please notify management if they are no longer working properly. Employees must be respectful of others sharing premises. Do not play music and/or television too loudly. Excessive consumption of alcohol is not permitted. Be safe - lock doors and do not let strangers in house. Only approved Covenant employees are authorized to occupy the housing unit and overnight guest must be approved by the Division Vice President. No sexual activity, including prostitution or other illegal activity in or around housing accommodations, as well as pornographic and offensive material is allowed. No pets are allowed in housing units. No modifications to the housing unit is permitted. Employee’s living in any type of housing unit may be responsible for lawn care i.e. mowing lawn, weed eating, pulling weeds and maintaining curbside appeal. Employees are responsible for reporting all problems with the house or appliances as soon as possible, as well as maintaining all appliances. Employees must always make a conscious effort to conserve energy and water of the premises.

The Company reserves the right to change any provision of the housing agreement. Employees who have been provided housing accommodations authorize the Company to deduct from his/her wages any amount in which must be paid to the Company under this Agreement. Employee’s further understand that unless there is substantial and relevant evidence, and/or a specific employee admits to causing damage to the property, all parties will be held responsible for damages and/or costs to clean premises and the amount will be divided equally and deducted between all employees residing at property.

5.9 Annual Criminal Background/Motor Vehicle Reviews (MVRs)

Covenant seeks the best qualified employee in each position, and to ensure a safe and productive workplace, Covenant has adopted a set of procedures for conducting criminal background and MVR checks on employees on an annual basis. Employees and contractors are required to advise Covenant of any pending charges and arrest during his/her scope of employment. The Company reserves the right to terminate employment based on the severity of the crime or felony. 26

5.10 Sick Time

When an employee will be out sick for 3 or more days he/she will be required to provide a doctor’s note outlining their absence as well as clearing the employee to return to work. If the employee may return to work but needs a temporary job modification that must be clearly outlined in the notice.

5.11 Passage of Time

The Company provides job protection for leave to all full-time employees as a form of reasonable accommodation; provided the request is within the Company’s approved leave policy. Employees who have been absent from work for a period exceeding six months may be terminated, regardless of the reason for the absence.

SECTION: 6-HOURS OF WORK, ATTENDANCE AND PUNCTUALITY 6.1 Hours of Work

All employees are expected to maintain satisfactory attendance and report to his/her shift on time. Unscheduled absences, late arrivals and early work departures must be kept to a minimum. Covenant reserves the right to request employees with poor attendance records to provide a physician’s notice justifying the absence due to illness or injury.

6.2 Timekeeping Process

Non-exempt hourly employees are required to accurately maintain his/her hours worked each day. Employee paychecks and benefit hours are based on the hours submitted through the time keeping system. Each employee is responsible for his/her own time keeping. Falsification or other unauthorized alteration of time cards will be grounds for dismissal. No employee may make entries on another employee’s timesheet, even if given permission. Employees who clock in must be ready to perform their job duties immediately after clocking in. All time cards must be updated daily and accurately. Failure to submit daily time records may result in consequences, up to, and including termination. Late time submission and unapproved time or PTO may result in late payment of wages subject to FLSA requirements. Lunch periods are non-compensated time and must be authorized and scheduled by the employees’ supervisor.

6.3 Break Periods Lunch periods are non-compensated time and must be authorized and scheduled by the employees’ supervisor: • • • •

Full-time non-exempt employees are permitted a 15-minute rest period for each four-hour work period. Both breaks and lunches may need to be staggered to ensure coverage is met as well as continue to provide an acceptable level of customer service. Employees scheduled to work 7 ½ hours or more will be provided with a one-hour lunch break. Employees should never leave their post unattended. Employees are not permitted to accumulate any unused rest periods or use rest periods as the basis for starting his/her work shift late, leaving work early, or extending a scheduled lunch break.

6.4 Overtime

Employees are expected to work overtime when needed. Non-exempt employees will be paid one and one-half (1½) times the regular hourly rate for time that exceeds 40 hours in a work week, with exceptions as provided in the Active/Standby Pay section. Supervisors and managers are responsible for scheduling, monitoring and authorizing overtime within their departments. Supervisors and managers must report overtime hours and overtime must be included on the employee’s timesheet.

6.5 Active/Standby Pay Active time is defined as the time in which employees are expected to be fully engaged and focused on their primary job duties. Standby time is defined as time the employee may need to be available, but not necessarily engaged in their duties. For employees working standby, Covenant allows for FLSA approved variations to pay. If you are approved to use Active/Standby time, your weekly wage paid will vary based on following calculation: Weekly Rate = (Pay Rate X Active Hours + Standby Rate X Standby Hours) / (Active Hours + Standby Hours) {The Standby Rate is calculated to be 50% of the primary Pay Rate or the minimum rate as determined by the appropriate region, whichever is greater. The rate used will be in accordance with federal & state minimum wage laws.} The Weekly Rate will then be used to determine the rates of pay for overtime hours each week by the following calculations:

• •

(Weekly Rate/2) + Active Base Rate = Active Overtime Rate (Weekly Rate/2) + Standby Base Rate = Standby Overtime Rate

Covenant complies with Department of Labor overtime regulations for all states in which Covenant operates.

6.6 Pay Schedule

Employees are paid on a bi-weekly basis. When a payday falls on a U.S. Bank holiday or Covenantobserved holiday, employees will typically be paid the day before the holiday.

6.7 Direct Deposit

Covenant employees are required to be paid via direct deposit. If the employee does not have a personal account they would like to use for payroll purposes, they can elect to be set up with a pay card. An employee's pay is deposited directly into his/her financial institution, brokerage account, credit union or pay card. Employees are permitted up to four separate direct deposits per paycheck to any U.S. financial institution, brokerage account, or credit union. Direct Deposits to an employee’s financial institution, brokerage account, or credit union requires proof of account ownership and a Covenant Direct Deposit Authorization Form to honor the request. Documentation should be emailed to the Payroll Department.

Direct Deposit will remain in effect until changed by the employee. It is the employee’s responsibility to notify the Payroll Department of any changes or closing of their direct deposit account as soon as possible. Please be advised, changes communicated the week of a payroll may not be in effect until the following pay period, dependent upon banking deadlines. The employee will also be responsible for submitting a new Direct Deposit Authorization Form with the new direct deposit information. Employees who fail to turn in notice of a closed account timely will be subject to a return ACH processing period prior to have funds reissued. Covenant may charge employees for the processing and delivery of non-direct deposit payments incurred as the result of an employee’s choice or failure to comply with policy.

6.8 Pay Card

A pay card is a reloadable, prepaid card offered by Covenant as an alternative pay method. Like direct deposit, pay cards are a form of electronic payment and are an alternative to traditional paper paychecks. The pay card offers mobile banking, ATM withdrawals, and internal bank withdrawals for participating Visa branches. Each pay date, the employee’s net wages are deposited directly into the pay card account. Employees can use their pay card anywhere a debit card is accepted to make purchases, get cash, pay bills, etc. This pay card is a Visa account, which is the employee owns, and can use even if employment ends with Covenant.

6.9 Wage Deduction

All deductions from an employee’s wages shall be in accordance with applicable law, and when required, the employee’s consent will be obtained. No deduction from an employee’s wages for any period shall cause the employee’s gross wages to be less than the wage required to be paid by Covenant, pursuant to applicable law. Employees who object to any deduction, such as deductions due to an absence or deductions for an advance are to contact the Payroll Department. Employees must consent in writing or electronically to the following voluntary deductions: • • • • •

Payment of group health insurance; Contributions to a retirement plan; Repayment of purchases made on credit from Covenant; Repayment of payroll advances; and Educational loans provided by Covenant

6.10 Repayments

Any employee who terminates with Covenant, for any reason, authorizes Covenant to withhold from their final paycheck any unpaid monies owed to Covenant, unless prohibited by applicable labor laws/regulations. If the final paycheck is insufficient to reimburse Covenant in full for monies owed, Human Resources will contact the former employee to coordinate a repayment plan to pay the debt in full. Any person employed for less than 90 days, will be required to repay Covenant for all pre-employment costs and unreturned Company property. These repayment items include, but are not limited to: •

Criminal background screening; 29

• • • • •

Fitness for duty tests; Drug and alcohol screening; Uniforms and issued PPE not returned promptly in good condition; Equipment, tools and other property issued and not returned in working order; and Laptops, iPads, cell phones, etc.

Covenant will deduct fees for pre-employment testing, equipment, cancellation, etc. pursuant to the schedule of applicable fees listed below. Fees will also be collected regardless of employment status. There may be additional fees assessed which are not included in this list. Service

Amount

Non-DOT

$416.50 (Within 90 Days)

DOT

TBD (Within 90 Days)

Retesting Fees

Varies by Facility

Cancellation/No Show Fees $35.00 Equipment

TBD Pursuant to Depreciated Value Calculations

Vehicle Damage

TBD Based on Actual Damages

Post-Accident Testing

TBD

6.11 Unscheduled Absences and Tardiness

Unscheduled absences, whether sickness, lateness or other reason, must be reported according to the following call-in procedure: Employees should call in 1-hour prior to their scheduled start time. In no event should an employee call later than 15 minutes past the start of their scheduled shift. Covenant’s customers may have additional call-in requirements that also need to be followed. Employees must speak to a live person. If the immediate supervisor is not available, the employee should leave a text message, including a number where the employee can be reached, then continue to call the manager, alternate supervisor, and assigned lead worker until the employee is able to speak to someone directly. For unscheduled absences of more than one day, the employee must follow call-in procedures for each day of absence, unless medical documentation has been submitted informing the employee’s supervisor of the duration of absence. Failure to follow the call-in procedure as set out by this policy may lead to the time being deemed as unauthorized leave without pay, and subject to discipline, up to and including dismissal from employment.

SECTION: 7-EMPLOYEE DEVELOPMENT 7.1 Job Postings, Promotions and Transfers

Transfers and promotions provide employees the opportunity for career growth and advancement within Covenant. Covenant is committed to providing an internal job posting process that supports our business needs, the career development needs of our employees, and our continuing commitment to equal employment opportunities for all qualified employees. To ensure that this process is administered in a fair and equitable manner, Human Resources oversees the process and ensures that all managers, supervisors and employees are aware of internal posting policies and practices. Employees are encouraged to discuss their career goals with their supervisor and Human Resources in advance of applying for open positions. Generally, if a position is posted on our external portal, any existing employee will be given first consideration to the position, provided they discuss with their supervisor in a timely manner, and meet the requirements below. Covenant will promote current, qualified employees to new or vacated positions. Job openings may be announced verbally and/or in writing and may be posted on break room bulletin boards, with Human Resources, and/or on Covenant’s website. Employees applying for an open position must meet the following requirements:

• •

Meet the minimum requirements for the position; and Not be on any disciplinary probationary period within the last 90 days from date of job opening, this may also include, but not limited to verbal warnings.

7.2 Performance Development Performance reviews provide a means for discussing, planning and reviewing the performance of each employee. Performance reviews assist employees to clearly define impactful career goals, understand their responsibilities, and receive feedback on ways to improve performance. Performance reviews are administered regularly and/or on a case-by-case basis by the employee’s direct supervisor. Receiving a performance review is not associated with a promotion but may influence the outcome of your professional development and pay.

SECTION: 8-CODE OF BUSINESS ETHICS 8.1 Conflict of Interest

Employees of Covenant have an obligation to avoid activities or situations that may result in a conflict of interest or the appearance of a conflict of interest. Employees must not use their positions to influence outside organizations or individuals for the direct financial, personal, or professional benefit of themselves, members of their families, or others with whom there is a personal relationship. Employees should not accept employment outside Covenant if it interferes with satisfactory job performance, or if there is a conflict of interest or the appearance of a conflict of interest as a result of the outside employment. The potential for conflict of interest exists across a wide range of activities in all areas of Covenant. Circumstances surrounding actions and decisions may be complex, and judgments on whether a conflict exists may be difficult to make. 31

All employees have an obligation to examine carefully any situation where there is potential for conflict of interest or the appearance of conflict of interest. Failure to do so may result in disciplinary action. Employees, who are concerned that a conflict may exist, or who are uncertain as to the effect or appearance of their activities, should always consult with their supervisor or the Human Resources Department prior to engaging in the activity.

8.2 Personal Relationships

Covenant strongly believes that a work environment where employees maintain clear boundaries between employee personal and business interactions is most effective for conducting business and enhancing productivity. Although this policy does not prevent the development of friendships or romantic relationships between co-workers, it does establish boundaries as to how relationships are conducted during working hours and within the working environment. Individuals in supervisory or managerial roles, and those with authority over othersâ&#x20AC;&#x2122; terms and conditions of employment, are subject to more stringent requirements under this policy due to their status as role models, their access to sensitive information, and their ability to affect the terms and conditions of employment of individuals in subordinate positions. This policy does not preclude or interfere with the rights of employees protected by the National Labor Relations Act or any other applicable statute concerning the employment relationship.

8.2.1 Relationship Guidelines

During working time and in working areas, employees are expected to conduct themselves in an appropriate workplace manner that does not interfere with others or with overall productivity. During nonworking time, such as lunches, breaks, and before and after work periods, employees engaging in personal exchanges in non-work areas should observe an appropriate workplace manner to avoid offending other workers or putting others in an uncomfortable position. Employees are strictly prohibited from engaging in physical contact that would in any way be deemed inappropriate by a reasonable person while anywhere on company premises, whether during working hours or not. Employees who allow personal relationships with co-workers to adversely affect the work environment will be subject to the appropriate provisions of Covenantâ&#x20AC;&#x2122;s disciplinary policy, including counseling for minor problems. Failure to change behavior and maintain expected work responsibilities is viewed as a serious disciplinary matter. Employee off-duty conduct is generally regarded as private, as long as such conduct does not create problems within the workplace. An exception to this principle, however, is romantic or sexual relationships between supervisors and subordinates.

8.2.2 Position of Importance

Any supervisor, manager, executive or other Covenant official in a sensitive or influential position with Covenant must disclose the existence of a romantic or sexual relationship with another co-worker. Disclosure may be made to the immediate supervisor and the Human Resources Department. This disclosure will enable Covenant to determine whether any conflict of interest exists because of the relative positions of the individuals involved. 32

8.2.3 Relationship Conflict of Interest

When a conflict-of-interest problem or potential risk is identified, Covenant will work with the parties involved to consider options for resolving the problem. The initial solution may be to make sure the parties no longer work together on matters where one is able to influence the other or act for the other. Matters such as hiring, firing, promotions, performance management, compensation decisions and financial transactions are examples of situations that may require reallocation of duties to avoid any actual or perceived reward or disadvantage. In some cases, other measures may be necessary, such as transfer to other positions or departments. If one or both parties refuse to accept a reasonable solution or to offer of alternative position, if available, such refusal will be deemed a voluntary resignation. Failure to cooperate with Covenant’s request to resolve a conflict or problem caused by a romantic or sexual relationship between co-workers or among managers, supervisors or others in positions of authority over another employee in a mutually agreeable fashion may be deemed insubordination and cause for immediate termination. The disciplinary policy of Covenant will be followed to ensure fairness and consistency before any such extreme measures are undertaken. The provisions of this policy apply regardless of the sexual orientation of the parties involved. Where doubts exist as to the specific meaning of the terms used above, employees should make judgments based on the overall spirit and intent of this policy. Any concerns about this policy should be addressed with the Human Resources Department.

8.3 Related Parties Policy - Employment of Friends and Relatives

Applies when friends or members of the same family are employed by Covenant and assigned to positions in which the friend or family member has supervisory or managerial authority over the other friend or family member. In such cases, including with respect to hiring, promotion, salary, performance evaluation and other staffing decisions may create an apparent, actual or potential conflict of interest (collectively, “Conflicts of Interest”). Potential Conflicts of Interest must regularly be reported to the direct supervisor and HR prior to offer, appointment, promotion, or evaluation. HR will notify the CEO of these items in order to maintain organizational transparency. Family member is defined as a spouse, domestic partner, romantic partner, children, parents, siblings, nieces, nephews, grandparents, grandchildren, aunts, uncles, first cousins, and corresponding in-law or step relationships (collectively, “Family Member”). Covenant prohibits discrimination based on family relationships, and such relationships shall not be used as a basis for denying rights, privileges, or benefits of employment. Concurrently, however, it is the intent of Covenant to minimize Conflicts of Interest, which may be created when staff: • •

Participate in hiring, salary, promotion and/or other staffing decisions affecting the status of a friend or Family Member; and/or Supervises, or evaluates a friend or Family Member.

To avoid Conflicts of Interests, staff may not participate in the initial appointment, promotion and/or other staffing decisions affecting the status of a family member. Staff may not also be assigned or transferred to a position, where they would supervise or be supervised by a Family Member. Exceptions to this Policy are expected to be very rare and shall be based on the need to hire and retain individuals who are most qualified for certain positions. Before an employee is assigned or transferred to a department where they would supervise or be supervised by a family member, the supervisor proposing the assignment or transfer shall send a written request to the Human Resources Department to determine whether measures can be implemented to avoid a Conflict of Interest.

8.4 Outside Employment (Moonlighting)

Covenant applies this policy consistently and non-discriminatorily to all employees, and in compliance with all applicable employment and labor laws and regulations. The following rules for outside employment apply to all employees notifying their supervisors or managers of their intent to engage in outside employment: Work-related activities and conduct away from Covenant must not compete with, conflict with or compromise Covenant’s interests or adversely affect job performance and the ability to fulfill all responsibilities to Covenant. Employees are prohibited from performing any services for Covenant customers that are normally performed by Covenant. This prohibition also extends to the unauthorized use of any company tools or equipment and the unauthorized use or application of any company confidential information. In addition, employees may not solicit or conduct any outside business during work time for Covenant. Covenant employees must carefully consider the demands that additional work activity will create before accepting outside employment. Outside employment will not be considered an excuse for poor job performance, absenteeism, tardiness, leaving early, refusal to travel, or refusal to work overtime or different hours. If outside work activity causes or contributes to job-related problems at Covenant, the employee will be asked to discontinue the outside employment, and the employee may be subject to the normal disciplinary procedures for dealing with the resulting job-related problem(s). In evaluating the effect that outside work may have on an employee’s job performance and other jobrelated responsibilities, Covenant’s Department heads and the Human Resources Department will consider whether the proposed employment: • • • •

May reduce the employee’s efficiency in working for Covenant. Involves working for an organization that does a significant amount of business with Covenant, such as major contractors, suppliers and customers. May adversely affect Covenant’s image. Employees who have accepted outside employment may not use company PTO to perform work on the outside job.

Fraudulent use of PTO or an employee’s refusal to discontinue outside employment after being requested to do so by his or her department head or the Human Resource Department will result in disciplinary action up to and including termination of employment.

8.4.1 FMLA/ADA/PDL/STD/LTD and Workers’ Compensation

Covenant employees are not permitted to undertake in any outside employment while out on any form of leave. Any employee found in violation will be immediately terminated.

8.5 Financial Interest in Other Business

Employees are required to disclose actual and/or potential conflicts of interest. The relationship cannot interfere with the employee’s duties and/or interfere with Covenant’s relationship with customers, employees and/or vendors.

8.6 Reporting Potential Conflicts

An employee is required to immediately report any potential conflict of interest to his/her supervisor or the Human Resources Department.

8.7 Standards of Conduct

Employees are expected to adhere to the highest standards of job performance and personal conduct, including individual involvement with Covenant personnel and outside business contacts. Covenant reserves the right to take disciplinary action, up to and including termination, against any employee for violating any company policy, practice, or rule of conduct. The following list does not include every type of unacceptable behavior that can or will result in disciplinary action, up to and including termination. Employees should be aware that conduct not specifically listed below, but which adversely affects or is otherwise detrimental to the interests of Covenant, other employees or customers may also result in disciplinary action, up to and including termination of employment. Covenant also retains the discretion to determine the nature and extent of discipline based upon the circumstances of each case.

8.8 Conflict Resolutions

Employees are encouraged to consult with his/her supervisor if he/she believes: • • •

A Covenant policy is being applied incorrectly; Has a complaint concerning his/her employment; and Requests to obtain further information on any aspect of his/her job.

Immediate supervisors are responsible for work assignments in their designated areas and an excellent source of information. If the supervisor is not able to provide a suitable answer or explanation to the employee’s concerns, or if the employee does not feel comfortable approaching his/her supervisor; the employee is encouraged to contact the Department Manager and/or the Department of Human Resources for assistance. Co-workers who have a conflict are encouraged to resolve the problem themselves; However, a resolution cannot be reached, both employees should approach their supervisor(s), and/or the Human Resources Department, who will work with the employees to determine a resolution.

8.9 Inventions and Creative Works

Employees understand that during his/her her employment with Covenant that any invention shall be and remain the property of Covenant. By accepting employment, an employee agrees that Covenant will own all inventions that, in its opinion, are made on company time or with company assets, that relate to Covenant’s business, or that are required to meet its obligations, and that the employee will assist Covenant in perfecting and protecting its title to these inventions. 35

Inventions includes, but not limited to ideas, potential marketing and sales relationships, research, plans for products or services, marketing plans, computer software (including source code and object code), computer programs, original works of authorship, characters, know-how, trade secrets, information data, developments, discoveries, improvements, modifications, technology, algorithms, and designs, whether or not subject to patent and/or copyright protection, made conceived, expressed, developed, or actually or constructively reduced to practice by the employee solely, or jointly with others, in connection with, or relating to, any work performed by the Covenant employee.

8.10 Anti-Harassment Plan

Covenant strives to promote and is committed to creating a workplace that is free of unlawful harassment. Covenant expressly prohibits any form of unlawful harassment based on race, color, religion, ancestry, gender, gender identity/expression, sexual orientation, national origin, age, disability, veteran status, or other protected status. Harassment of employees occurring in the workplace or in other settings in which employees may find themselves about their employment is unlawful and will not be tolerated by Covenant. Covenant takes allegations of harassment seriously and will respond promptly to complaints of harassment and where it is determined that such inappropriate conduct has occurred, and act promptly to eliminate the conduct and impose such corrective action as is necessary, including disciplinary action where appropriate. Employees must avoid any action, conduct, or behavior that may be viewed as harassment including, but not limited to, the following: • • • •

Unwelcome sexual advances; Request for sexual acts or favors; Verbal or physical conduct of sexual nature; and Verbal comments and/or physical threats constituting harassment.

Further, any retaliation against an individual who has complained about harassment or retaliation against individuals for cooperating with an investigation of a harassment complaint is similarly unlawful and will not be tolerated.

8.11 Sexual Harassment

Sexual harassment towards any employee by anyone employed or contracted with companies doing business with Covenant will not be tolerated. Employees should report any harassment by persons doing business with Covenant to his or her supervisor or the Human Resources Department.

8.11.1 Quid Pro Quo Harassment

The law recognizes the following two forms of sexual harassment: "Quid Pro Quo or “This for That” harassment occurs when an individual's submission to or rejection of sexual advances or conduct of a sexual nature is used as the basis for employment decisions affecting the individual or the individual's submission to such conduct is made a term or condition of employment. Usually this type of sexual harassment, by its nature, occurs between someone in a position of power and a subordinate. This is because the person in a position of power can confer employment benefits. Employment benefits in this context might include: • • •

Favorable performance reviews or recommendations; Promotions; and/or Raises. 36

This type of sexual harassment can also occur when there is a threat of negative work consequences for refusing to confer sexual favors. For example, this might mean someone is threatened with job loss, demotion, poor performance reviews, unfavorable shifts, less desirable project assignments, and so on.

8.11.2 Hostile Work Environment

Hostile Work Environment harassment occurs when unwelcome sexual conduct unreasonably interferes with an individual's job performance or creates a hostile, intimidating or offensive work environment even though the harassment may not result in tangible or economic job consequences, that is, the person may not lose pay or a promotion. Employers, supervisors, coworkers, customers, or clients can create a hostile work environment. Harassment can also occur when there is other verbal or physical conduct that is sexual in nature. Hostile environment sexual harassment might include: • • • • • • • • • • • • • • •

Interference with someone’s ability to move freely; Displays of inappropriate or offensive materials; Persistent, unwanted interactions, such as asking for dates continually; Sexual epithets, jokes, written or oral references to sexual conduct, gossip regarding one’s sex life; comment on an individual’s body, comment about an individual’s sexual activity, deficiencies, or prowess; Displaying sexually suggestive objects, pictures, cartoons; Unwelcome leering, whistling, brushing against the body, sexual gestures, suggestive or insulting comments; Dissemination in the workplace of sexually-explicit voicemail, e-mail, graphics, downloaded material, or websites; Inquiries into one’s sexual experiences; Discussion of one’s sexual activities; Repeated requests for sexual favors; Demeaning sexual inquiries and vulgarities; Offensive language; Other verbal or physical conduct of sexual or degrading nature; Sexually offensive, explicit or sexist signs, cartoons, calendars, literature or photographs displayed in plain view; or Offensive and vulgar graffiti.

8.12 Different Types of Harassment

Harassment can take on many forms. Acts from male to female, female to male and between or among individuals of the same sex which are sexual in nature and unwelcome sexual harassment may be directed against a person, persons or group. Regardless of the type of harassment, the victim is encouraged to come forward and disclose his/her concerns with their supervisor or the Human Resources Department after following the prescribed methods outlined in the policy below.

8.12.1 Reporting Harassment

If an employee believes that he or she has been subject to sexual harassment or any unwelcome sexual attention, he or she may address the situation directly and immediately to the harasser, if possible. If the inappropriate conduct does not cease, or if the employee is unable to or uncomfortable with addressing

the alleged harasser directly, he or she should report the incident to his or her own supervisor or manager, or the Human Resources Department. Additionally, the following information is needed for Human Resources to conduct the investigation: • • • • •

The name, department, and title of the employee filing the complaint. The name of the person engaging in the harassment, including the individual’s title (if known). The specific nature and duration of the harassment and any disciplinary action (demotion, failure to promote, dismissal, refusal to hire, transfer, etc.) taken against the employee, if any, because of the harassment. The name of each witness to the harassment. Whether the employee has previously reported the harassment and, if so, when and to whom.

8.13 Investigation Human Resources will promptly investigate the allegation in a fair and expeditious manner. The investigation will be conducted in such a way as to maintain confidentiality to the extent practicable under the circumstances. The investigation will include a private interview with the person filing the complaint and with witnesses. Human Resources will also interview the person alleged to have committed the harassment. When Human Resources has completed the investigation, to the extent appropriate, will inform the person filing the complaint and the person alleged to have committed the conduct of the results of that investigation. If it is determined that inappropriate conduct has occurred, Human Resources will act promptly to eliminate the offending conduct, and where it is appropriate will also impose disciplinary action. If necessary, one or both parties may be transferred to resolve the issue.

8.14 Non-Retaliation

It is the policy of Covenant to not take any form of retaliatory action against any employee, who in good faith voices concerns, seeks advice, files a complaint or grievance, seeks the aid of the Human Resources Department, testifies or participates in investigations. Retaliation is against the law and will not be tolerated. Retaliation complaints will be thoroughly investigated and, where substantiated, referred to legal authorities for prosecution.

8.15 Management’s Responsibility

Supervisory and management personnel who either observe or are made aware of inappropriate behavior or observe acts of discrimination due to harassment are required to notify their immediate supervisor and/or the Human Resources Department, regardless of whether a formal complaint has been made by the employee. Disciplinary actions will be enforced when management personnel fail to take appropriate action to stop the discrimination or harassment, as well as report the incident or offense. Covenant will reimburse lodging expenses at reasonable, single occupancy or standard business room rates. Receipts are not required for per diem allowances, provided the employee is more than 100 miles from his/her home office/yard.

SECTION: 9-SAFETY AND SECURITY 9.1 Weapons

Covenant considers the safety of its employees and customers and hereby establishes a clear policy that specifically addresses and prohibits weapons on Covenant premises, in Covenant vehicles, or in personal 38

vehicles while conducing Covenant business, unless applicable local laws require Covenant to allow the carrying or possession of such weapons. It is the policy of Covenant to prohibit the open or concealed possession of any personal weapons, firearms, explosives, ammunition, or any other incendiary devices on Covenant property. Weapons which are not allowed on Covenant premises include any form of weapon or explosive restricted under local, state, or federal regulations. This includes all firearms, illegal knives, explosives, ammunition, incendiary devices or other weapons covered by the law. Legal, chemical dispensing devices such as pepper sprays that are sold commercially for personal protection are not covered by this policy. This policy also prohibits weapons at any Covenant sponsored functions such as parties, picnics, meetings, tournaments, etc. Covenant premises includes, but not limited to, all Covenant and customerâ&#x20AC;&#x2122;s facilities, vehicles, as well as any leased, owned or rented equipment. Covenant may permit contractors, assigned to protect Covenant facilities and personnel in the course and scope of their employment to possess weapons, firearms or ammunition on company premises. Covenant reserves the right to conduct searches of any person, vehicle or object that enters onto Covenant property consistent with the law. (Refer to Covenantâ&#x20AC;&#x2122;s Search and Inspection Policy for additional information). Violation of this policy is considered a serious offense that endangers the safety of employees and others. Therefore, this offense may result in severe disciplinary action up to and including termination. Nonemployees found in violation of this policy will be escorted off Covenant premises by management, security, or law enforcement personnel and will not be permitted to return. When appropriate a referral to law enforcement may be made which may result in criminal charges.

9.2 Search and Inspection

Covenant reserves the right to conduct searches to monitor compliance with rules concerning safety of employees, security of company and individual property, drugs and alcohol, and possession of other prohibited items. "Prohibited items" includes illegal drugs, alcoholic beverages, prescription drugs or medications not used or possessed in compliance with a current valid prescription, weapons, any items of an obscene, harassing, demeaning, or violent nature, and any property in the possession or control of an employee who does not have authorization from the owner of such property to possess or control the property. "Control" means knowing where an item is, having placed an item where it is currently located, or having any influence over its continued placement.

9.2.1 Desks/Lockers/File Cabinets

In addition to Covenant premises, Covenant may search employees, their work areas, offices, lockers, personal vehicles if driven or parked on Covenant and/or customerâ&#x20AC;&#x2122;s premises or work site). These items are the property of Covenant and employees should not assume any level of privacy. meetings, tournaments, etc.

9.2.2 Personal Items

Other personal items that may be searched are bags, purses, briefcases, backpacks, lunch boxes, and other containers. In requesting a search, Covenant is by no means accusing anyone of theft, some other crime, 39

or any other variety of improper conduct. Searches will be conducted by either law enforcement or security personnel. Covenant must be able to show that any search or inspection is justifiable.

9.3 Investigations

Employees are fully required to cooperate possible in any internal investigation pertaining to security, auditing or work-related matters. Entry on Covenant or customer premises or work site constitutes consent to searches or inspections. Employees are fully required to cooperate possible in any internal investigation. Vehicles entering any Covenant or customer facility, or office location is subject to a search prior to, or at the time of, leaving. For practical purposes, private vehicle searches will be limited to those vehicles in which: • • •

Those is probable cause to believe contraband or Covenant property may be concealed. Elevated security threat conditions are present. Vehicle searches standards (i.e. Chemical facility Anti-Terrorism Standards (CFATS), Maritime Transportation Security Act (MTSA), Nuclear Regularly Commission (NRC), International Atomic Energy Agency (IAES), Customs Trade and Partnership Against Terrorism (CTPAT), International Ship and Port Security (ISPS).

9.4 Anti-Terrorism Policy

Covenant does not condone the use of violence or threats to intimidate or coerce and renounces all forms of terrorism and will never knowingly support, tolerate or encourage terrorism, or the activities of those who embrace terrorism and will make every effort to ensure that its resources are not used to facilitate terrorist activity. Covenant acknowledges Government legislation prohibits dealing with listed terrorist organizations and/or prescribed persons or entities. At all times, Covenant will adopt measures intended to facilitate compliance with this legislation. Any mention by an employee of anti-terrorism will result in immediate termination and local authorities will be notified. Covenant defines terrorism as follows: • •

International Terrorism: Perpetrated by individuals and/or groups inspired by or associated with designated foreign terrorist organizations or nations (state-sponsored). Domestic Terrorism: Perpetrated by individuals and/or groups inspired by or associated with primarily U.S.-based movements that espouse extremist ideologies of a political, religious, social, racial, or environmental nature.

9.5 Violence-Free Workplace

Covenant strictly prohibits workplace violence, acts of violence and/or threats of violence whether expressed or implied and such threats will not be tolerated. This policy is also applicable to off-duty violent or inappropriate behavior that may have adverse effects on the abilities of employees, visitors, vendors, customer’s and contractors. This policy defines prohibited conduct, as well as general procedures and potential responsive steps in the unfortunate event that workplace violence occurs despite these preventive measures. Workplace violence includes but not limited to, any act or threat of physical violence, domestic violence, harassment, intimidation, property damage or other threatening disruptive behavior that occurs at the work site and can affect and involve employees, contractors, customers, vendors and visitors. 40

In the event of any active workplace violence, Covenant will take all necessary actions and safety precautions, including contacting local law enforcement.

9.5.1 Intimidation

Is engaging in actions or behavior intended to frighten, coerce or induce duress.

9.5.2 Stalking

Involves anyone who willfully, maliciously and repeatedly follows, harasses and intimidates another person and/or who makes credible threats with the intention to place that person in reasonable fear of bodily injury or death. Stalking can also include identity theft, sexual assault, and vandalism.

9.5.3 Threat

The expression of intent to cause physical or mental harm, without regard to whether the party communicating the threat can carry it out and without regard to whether the expression is contingent, conditional or future.

9.5.4 Physical Attack

Unwanted or hostile physical contact such as fighting, pushing, hitting, shoving, choking, biting, hair pulling or throwing objects.

9.5.5 Domestic Violence

When one individual inflicts mental or physical injury, including threats and intimidation, to another party where there is an on-going or prior intimate relationship.

9.5.6 Property Damage

Intentional damage caused to property which includes property owned by Covenant, employees, visitors, customers or vendors.

9.5.7 General Violence

When an employee at the workplace is harmed by a stranger, customer, vendor or someone the employees knows. The violence inflicted may range from stalking, making threats, harassing, verbal abuse to a serious injury, including death.

9.6 Horse Playing

Covenant prohibits the use of irresponsible behavior such as horseplay (and other unsafe actions such as scuffling, fighting, etc.) which creates an adverse effect on safety and the well-being of others. Horseplay at work is defined as rough or boisterous play or pranks that occur at the workplace. Horseplay may include activities such as joking using physical contact, playing around, racing, grabbing, foolish vehicle operation, social pressure to participate in unsafe acts, harassment, and/or unauthorized contests. Horse playing with co-workers may lead to serious injuries and sometimes be deadly. Horseplay is a safety hazard and may result in an accident and injury as it may be difficult for an employee to pay attention to safety and the job in general because he/she is on the lookout for the next unforeseen horseplay or practical joke. Liability may become an issue if someone is hurt due to horseplay or a practical joke and the horseplay perpetrator may be liable for damages and face disciplinary action, up to and including termination.

9.7 Accidents and Emergencies

Maintaining a safe workplace is essential to Covenant’s operations, and it is Covenant’s policy to promote safety on the job and comply with applicable laws regarding safety in the workplace. The health and wellbeing of employees is foremost among Covenant and employees are expected to assist in maintaining safe working conditions. Employees are required to follow common-sense safety practices and correct or report any unsafe working conditions, machines, etc.; as well as, report any workplace accidents, injuries and illnesses to his/her supervisors, the Human Resources Department and/or the HSE Department.

9.7.1 Reporting of an Accident/Incident

Employees are required to report to work during each scheduled workday able to safely and competently perform their job duties. If employees are unable to safely or competently perform their job duties for any reason, they are required to inform employee’s supervisors, the Human Resources Department and/or the HSE Department. Additionally, employees who observe or experience unsafe working conditions are required to immediately report the unsafe working conditions to employee’s supervisors, the Human Resources Department and/or the HSE Department. All accidents and injuries involving employees, even those that are not serious, must be reported immediately to his/her supervisors, the Human Resources Department and/or the HSE Department. Employees who experience a work-related accident or injury will be required to complete the appropriate forms and cooperate with Covenant in complying with its recording, reporting and investigation obligations. Failure to report an accident, injury and/or illness may result in disciplinary infraction, up to and including termination. Similarly, all accidents and injuries involving Covenant’s customers, vendors, contractors or any other person who is on company premises, even accidents and injuries that are not serious, must be immediately reported to the employee’s supervisors, the Human Resources Department and/or the HSE Department. It is only through full knowledge of every accident or injury that Covenant can become a safer, healthier place to work for everyone. Employees’ notification to Covenant of unsafe working conditions or of workplace accidents, injuries or illnesses is essential to enforcing this policy. Employees may be assured that they will not be penalized in any way for reporting unsafe working conditions or workplace accidents, injuries or illnesses. Employees with questions regarding this policy should contact employee’s supervisors, the Human Resources Department and/or the HSE Department. Additional information is available in the HSE Handbook. Covenant maintains essential business services and operations during any incident or emergency while providing for the protection of life, health, and safety for all employees, customers and visitors.

9.8 Covenant Emergency Operations Plan

The plan that outlines responsibilities of Covenant employees during an incident or emergency and provides guidelines for transition from normal to emergency operations. The plan is activated when a significant event threatens normal operations, to allow Covenant employees to respond to an incident or 42

disruption of services while providing for the safety of our employees, customers and visitors. More information can be found online by accessing our website: www.ctest.com.

9.9 Building Access Polies and Procedures

The safety and security of the company’s physical space and assets is a shared responsibility of all employees assigned to that location. To meet this obligation, Covenant has established building access control policy provisions to address the design, administration and management of access control systems and measures to ensure their integrity. Access Control privileges are determined and assigned by Covenant administrators and management based on the specific needs and requirements of the key/card holder. All keys and access control devices for Covenant buildings are the property of the Company. Keys and access control devices issued become the individual’s responsibility until termination of employment, or the granted access to an area is no longer needed. Keys are assigned to individuals and shall not be passed along to other departmental personnel, or person hired to replace a departing employee. If keys/access badges become lost or damaged, there may be a fee assessed and associated with replacement.

9.9.1 Visitors in the Workplace

To provide for the safety and security of employees, visitors, vendors and customers, Covenant only permits authorized visitors in the workplace. Restricting unauthorized visitors helps ensure security, decreases insurance liability, and protects confidential information. The work rules and standards of conduct for Covenant are important, and Covenant regards them seriously. All employees are urged to become familiar with these rules and standards. In addition, employees are expected to follow the rules and standards faithfully in doing their own jobs and conducting Covenant business. Employee’s guests, family members, friends, etc. are held to the same standards as Covenant employees and their actions have consequences. Visitors MUST not: • • • • • • •

Pose threats to our premises and property; Distract employees from their work; Engage in hate speech; Steal property; Be exposed to danger; Harass Covenant employees, vendors or suppliers; or Violate any other policy which Covenant employees are required to follow.

Visitors should sign in at the reception/gate/front-office and show some form of identification. Visitors will receive a visitor pass and must return the pass back to the reception/gate/front-office once the visit is over. Employees must always supervise to their visitors while they are inside our premises. Common areas, like lobbies, may be open to visitors. We advise our employees to only permit visitors in those areas for a short time and for specific reasons. Employees are responsible for accompanying any of their underage visitors at all times.

Employees may bring visitors to company events and/or where an invitation to bring a guest has been extended. Covenant reserves the right to have a visitor escorted off the premise or customer site if their actions deem it necessary or contact the local authorities. Covenant employees are responsible for their guest’s actions and may face disciplinary action, up to and including termination.

9.10 Solicitation During Work

Distractions on the job may lead to unsafe working conditions, poor work performance and inefficiency. Covenant has the following policies in place related to solicitations: During periods of the workday when an employee is engaged in or required to be performing work, employees may not engage in solicitation of other employees or distribution of literature for any purpose. This restriction applies to all types of sales and/or requests for donations for any cause. During periods in another employee’s workday when he/she is engaged in or required to be performing his/her work, an employee may not solicit the other employee for any purpose. Distribution of literature of any kind may not be made in the work areas of the premises at any time. This restriction applies to all types of sales and/or requests for donations for any cause. Persons who are not employed by the Covenant are not permitted to solicit or distribute literature, request donations or sale anything on company or customer’s premises.

9.11 Drug and Alcohol Substance Abuse

Covenant is committed to protecting the safety, health and well-being of its employees and all people who come into contact with its workplace(s) and property, and/or use its products and services. Recognizing that drug and alcohol abuse poses a direct and significant threat to this goal, Covenant is committed to ensuring a substance-free working environment for all its employees. Therefore, Covenant strictly prohibits the illicit use, possession, sale, conveyance, distribution, or manufacturing of illegal drugs, intoxicants, or controlled substances in any amount or in any manner. In addition, Covenant strictly prohibits the abuse of alcohol or prescription drugs. Any violation of this policy will result in adverse employment action up to and including dismissal and referral for criminal prosecution. Before beginning work on company or customer property, all company personnel must sign a written certification that they have been so informed and agree to be bound by the requirements. Employees are required to be in a suitable mental and physical condition when at work, perform his/her job satisfactorily and behave appropriately. When the use of alcohol and/or drugs interferes with such expectations, employees will be offered appropriate assistance. (For further information refer to the Employee Assistance Program (EAP) section of the CTT Employee Handbook). All employees, contractors, temporaries, and consultants are required to comply with this policy as a condition of continued employment, unless prohibited by applicable law. If an employee is subject to concurrent regulation by the Department of Transportation (“DOT”), the more stringent policy or regulation will prevail, unless prohibited by the relevant DOT regulations. Employees are prohibited to operate machinery and drive a Covenant owned, leased or rented vehicle at any time, or operate any equipment on behalf of Covenant or its customers while under the influence of 44

alcohol, narcotics or prescribed medication that may hinder an employee’s ability to drive or perform safely. Alcoholic beverages or illegal narcotics are prohibited on Covenant or customer-owned or leased premises or consumed there at any time. Over the counter and prescribed medication is permitted when medically necessary. Employees are required to notify his/her supervisor, HSE or Human Resources when prescribed or over the counter medications may pose a safety threat to them, employees and/or the facility. Failure to comply may result in disciplinary action, up to and including termination. A medical evaluation may be required. Pursuant to Exploration and Production Contractors Consortium (“EPCC”) Substance Abuse Policy, a Contractor Employee Member may request a re-analysis test of his/her original specimen, provided he/she submits his/her request for reanalysis to DISA in writing within two (2) weeks from the time the Contractor Employee Member is notified by the MRO of a positive test result. Any confirmed presence of a substance in the sample results is a positive test. If the presence is not confirmed, the result is reported as negative. The fees related to re-analysis of a positive result will be the responsibility of the employee. Covenant reserves the right to amend or modify this policy at its sole discretion in accordance with the requirements of applicable laws or for any other lawful reason. Employee’s seeking information regarding this policy, the consequences of illegal drug use or alcohol misuse, and sources of assistance for drug and alcohol problems, including Covenant’s EAP and Covenant’s Care Program, is available through the Human Resources Department. (For further information refer to the EAP and the Covenant Care Program section of this handbook).

9.11.1 Definitions

Any substance listed in Schedules I-V of Section 202 of the Controlled Substance Act, as amended: that are classified as an illegal narcotic: Drug - Any chemical substance that produces physical, mental, emotional, or behavioral change in the user. Drug paraphernalia - Equipment, a product, or material that is used or intended for use in concealing an illegal drug, or otherwise introducing into the human body an illegal drug or controlled substance. Company Personnel - All company employees, agents, subcontractors or subcontractors’ employees performing field operations work on company or customer property. This includes temporary and parttime personnel. Property or Customers Property - All real or tangible personal property, including facilities, buildings, vehicles, products and equipment, either owned or controlled by Covenant or its customers. Prohibited Substances - Illicit or un-prescribed drugs, controlled substances and mood or mind-altering substances (for example: any synthetic derivative/product that produces a marijuana-type high and any herbal products not intended for human consumption): • • •

Prescribed drugs used in a manner inconsistent with the prescription; Alcoholic beverages; and Medical Marijuana/Recreational Marijuana – The use of marijuana for medical or recreational purposes, even if permitted by state law, regulation or ordinance, will not be considered an 45

acceptable explanation for a confirmed positive laboratory report for marijuana and will be reported by the Medical Review Officer (MRO) as a verified positive drug test for marijuana. Covenant will treat marijuana like they would alcohol; they are not required to tolerate individuals being under the influence while at work, or on customer property. Covenant will not permit or accommodate the use, consumption, possession, transfer, display, transportation, sale or growing of marijuana in the workplace. Reasonable Suspicion - A belief based on objective and articulable facts sufficient to lead a supervisor to suspect use of prohibited substances. For the purposes of this section a supervisor is a company employee acting in an official supervisory capacity who has successfully completed drug and alcohol supervisor training as outlined. Under the Influence - The presence of a prohibited substance or metabolites of a prohibited substance in body fluids above the cut-off level established by company’s policy or other commonly accepted cut-off level. The presence of a prohibited substance that affects an individual in any detectable manner. The symptoms of influence may be, but are not limited to, slurred speech or difficulty in maintaining balance.

9.12 Prohibitions

Unless specifically authorized in writing by Covenant and its customers, Covenant policy shall prohibit company personnel from the following: Using, possessing, selling, manufacturing, distributing, concealing or transporting on company or customer property any of the following items: • • •

Any prohibited substance; Contraband, including firearms, ammunition, explosives, and weapons (except where in violation of state law); Illicit drug equipment or paraphernalia.

Possessing or using prescription drugs or over-the-counter medication that may cause impairment, except when all the following conditions have been met, while on company property (unless otherwise provided for under the American’s with Disabilities Act): • • •

• •

Prescription drugs have been prescribed by a licensed physician for the person in possession of the drugs, and; The prescription is not expired and was filled by a licensed pharmacist for the person possessing the drugs, and; The individual notifies their supervisor that they will be in possession of, or using, impairmentcausing prescription drugs or over-the-counter medication and appropriate steps are taken to accommodate the possibility of impairment, including but not limited to, removal from work for the period of possible impairment. Note: Discussions between the individual and their supervisor must be limited to the individual’s ability to perform essential job functions. Being under the influence of prohibited substances while performing any work for Covenant or their customers. Switching, diluting or adulterating any urine, blood or other sample used for testing.

Performing work for Covenant or their customers when an individual has tested positive or refused testing in any employment-related test. 46

9.12.1 Designated Employee Representative (DER)

Designated Employee Representative (DER) should be an employee within the Health, Safety and Environment (HSE) or HR Department who is authorized to receive test results and other communications, take immediate action to remove workers from a company or customer’s jobsite and make required decisions in the testing and evaluation process. Specific roles and responsibilities assigned to a DER should include, at a minimum, the following: • • • • • •

Select and contract with a laboratory or service provider, based on pre-determined criteria, to help implement all or part of the Drug, Alcohol and Contraband Program. Receive general correspondence, newsletter, and announcements from laboratories and service providers. Coordinate reasonable suspicion training for all supervisors and ensure they have signed a document acknowledging completion of the training. Schedule and coordinate drug and alcohol testing activities. Maintain confidential files for the Drug, Alcohol and Contraband Program. Monitor non-negative, positive, or invalid test results and results supporting that the specimens have been adulterated or substituted to determine appropriate actions.

9.12.2 Medical Review Officer (MRO)

An MRO is a person who is a licensed physician who is knowledgeable about substance abuse problems, medical and legal issues, and clinical and occupational medicine. An MRO is responsible for receiving and reviewing laboratory test results and evaluating medical explanations for certain drug test results. Roles and responsibilities assigned to an MRO typically include the following: • • • • • •

Serve as an independent party to oversee the accuracy and integrity of Covenant Drug and Alcohol Testing process (DOT and NON-DOT). Review appropriate copies of chain-of-custody forms to determine if problems exist Conduct verification interviews with workers for non-negative drug test results or results indicating that the specimen has been adulterated or substituted. Interpret drug test results to determine if a legitimate medical explanation exists for a laboratory’s confirmed positive, an invalid test result or adulterated or substituted specimen. Immediately report verified positive or invalid results, results requiring immediate collection under direct observation, adulterated or substituted specimens, and other refusals to test to appropriate personnel. Report written drug test results in a confidential manner to appropriate personnel authorized to receive such information.

9.13 Testing Requirements

Drug and alcohol testing must meet the requirements of Covenant and our customers.

9.13.1 Pre-Access Testing

All company personnel are subject to customer pre-access testing which may mandate that the employee(s) receive a negative result on a drug and/or alcohol test within a customer’s specific required amount of time preceding the employee’s first access to customer property. Note: Some customers may waive this requirement if employee(s) are currently active in a random testing pool. Annual drug and alcohol testing are required by specific customers. Upon customer’s request, company shall so certify in writing. 47

Company will provide no information to customers identifying individuals who have positive pre-access tests.

9.13.2 Post-Incident Testing

Company shall remove individuals from customer property and surrender their site credentials to the customers IF it is determined by Covenant or customers: • •

From the best information available, immediately following a work-related incident; The performance of one or more company personnel contributed to the incident or cannot be completely discounted as a contributing factor to the incident.

An individual so removed will be allowed to return to work on customer property only after: • • • • • • • • • • • • • • • • • • • • • • Or

Company conducts alcohol and drug testing on the individual as soon as possible following the individual’s removal from the site, and Covenant certifies all the following in writing: the test identification number; The individual’s 4 digit identifying number; The test date and time; and A negative test results. On the written certification Covenant will include a consent signed by the individual permitting disclosure to customers of the test result. Covenant may decide not to conduct a post-accident drug and/or alcohol test if: The best information immediately available after the accident indicates that the employee’s performance could not have contributed to the accident, or Because of the time between the performance and the accident, it is not likely that a drug and/or alcohol test would reveal whether performance was affected by drug and/or alcohol use. If alcohol testing occurs more than two (2) hours from the time of the incident, a written reason for the delay may be required by customers. If drug testing cannot be completed within 32 hours, a written reason why the testing could not be completed may be required by customers. If an employee who is subject to post-accident testing is conscious, able to urinate normally (in the opinion of a medical professional) and refuses to be tested, that employee shall be removed from their position and shall be subject to discipline. For the purpose of this part “incident” means: An actual event that caused: Injury requiring medical treatment beyond first aid Environmental impact beyond a small immediate area to: Soil/ground, or water; Marine life; or Impact to nearby habitat, wildlife, livestock, crops or fisheries. Process Safety events as determined by the responsible company or customer Supervisor. Property damage as determined by the responsible company or customer Supervisor. Motor vehicle accident (the operator of the vehicle or other individuals where there is evidence to support that they may have contributed to the incident).

An event that had potential for: •

Serious injury/fatality. 48

• •

Environmental impact beyond Company or Customer Premises. Property damage as determined by the responsible Company or Customer Supervisor.

9.13.3 Reasonable Suspicion Testing

Upon reasonable suspicion of company or customers that company personnel are under the influence of a prohibited substance while on company or customer property (refer to the Reasonable Suspicion Testing Policy) as a guide to assess whether there is reasonable suspicion for requesting a test), company shall remove the individual(s) from customer property and surrender their site credentials to the customers. An individual removed from company or customer property for Reasonable Suspicion will be allowed to return to work on company or customer property only after: Company conducts alcohol and drug testing on the individual(s) as soon as possible following the individua(s) removal from the site, and the following: Company certifies all the following in writing: • • • • •

The test identification number The individual’s 4 digit identifying number; The test date and time; and A negative test results. On that written certification Covenant will include a consent signed by the individual permitting disclosure to customers of the test result.

9.13.4 Random Testing

Covenant will randomly test employees for compliance with its drug-free workplace policy. As used in this policy, “random testing” means a method of selection of employees for testing, performed by an outside third party. The selection will result in an equal probability that any employee from a group of employees will be tested. Covenant has no discretion to waive the selection of an employee selected by this random selection method. When customers or Covenant require random drug and/or alcohol testing, then the following guidelines will be followed by employees: • • • • • •

Unannounced random testing. Performed on a quarterly basis (at a minimum). That yields a compliance of an annualized rate as determined by the customer operator. If required by the specific customer, a breath alcohol test will be given at the same time as the drug test. Upon notification of being selected for a drug and/or alcohol test, employees must report to the collection site within 30 minutes, plus travel time. Failure to report to the collection site, refusal to test, or altering a specimen is considered the same as a positive test and the individual could be denied access to company or customer premises.

9.13.5 Wall-to-Wall Testing

Company personnel may be subject to: •

Unannounced en masse drug and alcohol testing.

• • •

Such tests are scheduled at the sole discretion of the customer and/or Covenant. This includes the determination of the scope and the timing of such testing. Such a group may include all members of the named group on site at the determined time or period and shall not be determined in terms of named individuals. Such groups may include, but are not limited to, all employees on site, or by shift, by crew, by location, by craft, by company or by another similar category, including a random selection based on site access records.

9.14 Testing Protocol 9.14.1 Laboratory

Laboratories selected for employee drug testing must be evaluated against the following criteria to help ensure that results obtained from these laboratories will be reliable. • • •

Laboratories must be certified according to local laws and regulations or industry practices for providing accurate and reliable services. Urine samples must be analyzed by a laboratory that has been certified by the Department of Health and Human Services under the National Laboratory Certification Program or Substance Abuse and Mental Health Services Administration (SAMHSA). Hair follicle specimens must be analyzed by a Clinical Laboratory Improvement Program (CLIP) accredited laboratory.

Note: some customers will not allow hair testing to meet their requirements. • • • • • • • • • •

Special handling and chain-of-custody procedures must: Be written and available; and Discuss inspecting, documenting, storing, and transporting specimens. Laboratory management and staff must have appropriate education, experience, and qualifications. Quality-Control procedures must be: Written and available; and Include testing blank and spiked samples for verification. Laboratories must be able to provide technical assistance and advice concerning drug and alcohol testing. Sample supplies appropriate to the type of specimen being collected or the test run must be readily available from the laboratory. Laboratories must be able to generate confidential and accurate reports.

9.14.2 Collection Personnel

Urine specimens must be collected by personnel who have been trained and certified according to the SAMHSA/DHHS guidelines which includes: • • • • • •

Basic information; Qualification training; Initial proficiency demonstration; Refresher training; and Error correction training; Hair follicle specimens must be collected by personnel that have documentation supporting that they have been trained in: 50

• • • •

Equipment and procedures used in gathering and collecting hair follicle specimens; Preparing chain-of-custody forms; Preparing the specimen for shipment; and Shipping the sample to an approved laboratory.

9.14.3 Breath/Saliva

Testing shall be conducted utilizing devices approved by the National Highway Traffic Safety Administration or equivalent. All collection and testing procedures shall mirror as closely as possible to US DOT (Department of Transportation) protocols.

9.14.4 Alcohol

Employees that have a blood alcohol concentration (BAC) level: • •

Equal to 0.02 and less than 0.04 must be removed from performing safety or security-sensitive activities until the BAC level is below 0.02 (unless Attachment A from specifies a more stringent level). To or greater than 0.04 have violated the Drug, Alcohol and Contraband Program and are subject to disciplinary action up to and including termination.

9.15 Non-Compliance Company personnel will be found to be in non-compliance if they: • Violate any portion of this policy or the customer’s policy; or • Refuse to cooperate with the searches and tests included in this policy or the customer’s policy.

If found to be in non-compliance: • • • •

Covenant personnel found to be in non-compliance shall be permanently removed by Covenant from customer property and from performing work for the customer. Company must immediately notify customers that the individual has become disqualified from performing work for them. Company will immediately review with customers the nature of the work previously performed by the individual. At customer’s request, company shall, at its sole cost and risk, inspect all work in which the individual may have participated and submit a written report to the customer that documents the inspection and any findings, and the actions taken to ensure all deficiencies have been corrected.

9.16 Special Provisions-Customer Approved Consortium

Enrollment in and maintenance of an “active status” in a customer-approved consortium that: • •

Requires pre-enrollment testing; and Continuously subjects active members to random drug and/or alcohol testing at an annual effective rate of at least 50% (unless otherwise specified by DOT).

9.17 Supervisor Training

If management suspects an employee is under the influence, please complete the Drug and/or Alcohol Checklist in HazardScout under the Human Resources Folder.

Covenant shall provide training regarding this policy to all affected company personnel, to include recognition of performance indicators of probable drug and/or alcohol use and on its effects and consequences to personal health, safety and the workplace. Each supervisor responsible for determining whether an employee must be tested based on reasonable suspicion shall receive at least one 60-minute training session on the specific, contemporaneous, physical, behavioral, and performance indicators of probable drug and alcohol use. Records of trained individuals (including name and date) must be maintained by Covenant and available to customers upon request. Managers and supervisors must be adequately trained in the topics listed below to ensure they effectively communicate and implement the Drug, Alcohol and Contraband Program. • • • • • • •

Rationale for having the Drug, Alcohol and Contraband Program; Requirements contained in the Program; Procedures for implementing the Program; Drug and alcohol abuse terms and symptoms; Reasonable suspicion that an employee is under the influence of drugs or alcohol; Documentation of potential drug or alcohol abuse problems; and Protecting employee confidentiality.

Covenant Employee education opportunities must be developed to communicate the Drug and Alcohol Testing Program. Education and communication must include, but are not limited to the following topics: • • • • •

Requirements contained the Drug, Alcohol and Contraband Program. Types and effects of drugs, including prescription and over-the-counter medication, and alcohol on employees and the ability to perform their work safely. Ways to assess whether employees may have drug and alcohol dependency problems or may be under the influence of drugs or alcohol. Requirement to inform supervisors of reasonable suspicion of an employee being under the influence of drugs or alcohol. Disciplinary actions for employees failing to comply with the Drug, Alcohol and Contraband Program.

9.18 Audit

Company shall keep records required by this policy available for inspection by customers during the period that Covenant is performing work for customers and for a period of (3) years after company ceases to perform work for that customer. Such records include but are not limited to: • • •

Laboratory copies of test results; Chain of custody forms; and Copies of signed acknowledge/consent forms from this policy.

Records can be stored electronically as long as they are accessible upon request.

At their discretion, customers may perform unannounced audits of Covenant’s alcohol and drug program to verify that Covenant’s policy and its enforcement comply with these guidelines. At customer’s request Covenant shall: • •

Provide separate lists of company personnel (including name and 4-digit identifying number) who were eligible for customers work on a date specified by customers. Provide customers with the following information on each alcohol and drug test conducted for each company personnel identified by customers from those lists: § §

Date of and type of test (e.g. random, pre-access); and Laboratory chain-of-custody identification number and/or test number.

Upon submission by customers of a list, or lists, of 4-digit identifying numbers, chain-of-custody ID numbers and test dates, Covenant shall obtain an agreement with any consortium, laboratory, or Medical Review Officer (MRO) providing drug and/or alcohol testing services for Covenant to ensure: • •

The consortium/laboratory will verify that the tests were conducted as represented; and The consortium/laboratory or company MRO will provide a sworn statement attesting whether or not each of the tests identified by the customer can be confirmed as negative.

9.19 Urine Non-DOT and Alcohol Testing Protocol

***Drug testing should be a urine test that is collected by a certified collector and the specimen sent to a SAMHSA certified laboratory for analysis. Quick Screen/Rapid Test devices are not acceptable unless prior approval has been received, in writing, from your customer and a copy of that approval has been submitted to NCMS. ***Alcohol testing should be a breath test using a device that is listed on the DOT conforming products list. If a screening device (saliva) is utilized, it must be listed on the DOT conforming products list. If the result is positive you will need to follow the waiting period guidelines of 15 minutes and then follow up with a confirmation test using a confirmation testing device. It is imperative that these testing guidelines are followed, or the employee could be denied access or working for a customer. (If there are exemptions from these testing guidelines from the customer, then a copy of that exemption should be submitted to NCMS).

9.20 Hair Follicle Drug Testing Protocol

***If Hair Follicle testing is an acceptable testing method per the customer then the use of a laboratory accredited under the Clinical Laboratory Improvement Program (CLIP) is required. Collections of the hair follicle should be performed by personnel with documentation showing they have training on collection techniques, transportation procedures and completion of chain of custody forms.

9.21 Smoking/Tobacco Products 9.21.1 Smoking

Covenant is committed to the improvement of the health and safety of our employees, vendors, visitors and customers. Smoking and/or the use of tobacco products is not permitted in any building, shelter, and company leased, rented or owned Covenant vehicle.

Covenant prohibits smoking or carrying of any ignited tobacco containing products, within a 50-foot perimeter, of explosives (Class 1 materials) and by facilities owned, operated or leased by Covenant. Employees are also required to abide by customer’s smoking policy as well. Local smoking laws must also be followed.

9.21.2 Tobacco Products

Includes but not limited to cigarettes, pipes, cigars, snuff, chewing tobacco, e-cigarettes, or smoking accessories.

9.22 Medical Treatment

Employees will be provided care, first-aid, and emergency service, as required for injuries or illnesses while on Covenant and/or customer property. Employees must notify his/her supervisor of all incidents and injuries and/or call 911 in the event of an emergency.

9.23 Workers’ Compensation

Covenant provides coverage and protection in accordance with Workers’ Compensation Law. Any injury sustained while at work must be reported immediately to the employee’s supervisor, who will notify the HSE Department. Failure to report accidents is a serious matter as it may preclude an employee’s coverage under Workers’ Compensation Insurance. Employees who fail to report an occupational an injury, illness or motor vehicle accident in a timely manner may be subject to disciplinary action, up to, and including termination. Covenant considers the failure to report just as serious as the accident/emergency/incident itself. For additional Non-DOT, DOT and safety rules and regulations please refer to the current Standard Operating Procedures.

9.24 Reporting of an Accident/Incident Employees must report any accident, theft or malicious damage involving a company vehicle to their supervisor and the HSE Department (via the appropriate HazardScout report), regardless of the extent of damage or lack of injuries. Such reports must be made immediately. Employees are expected to cooperate fully with authorities in the event of an accident. However, employees should make no voluntary statement other than in reply to questions of investigating officers.

9.25 Post Accident

Employees involved in an accident/incident will be required to adhere to a drug and alcohol test. Failure to comply with the post-accident policy is the equivalent of testing positive and immediate grounds for termination. All employees involved in the accident/incident, regardless of who was operating the vehicle will be required to the post-accident drug and alcohol testing. Employees who are on call on a 24-hour basis may be allowed to take a company vehicle home, so they can respond as soon as possible and fully understand that the vehicle is used only as part of emergency response and not for personal use. Employees are not permitted, under any circumstances, to operate a company vehicle or a personal vehicle for company business when any physical or mental impairment causes the employee to be unable to drive safely. Additionally, employees shall not operate any company vehicle at any time or operate any 54

personal vehicle while on company business while using or consuming alcohol, illegal drugs or prescription medications that may affect their ability to drive. These prohibitions include circumstances in which the employee is temporarily unable to operate a vehicle safely or legally because of impairment, illness, medication or intoxication. Covenant reserves the right to search any Covenant vehicle at any time in accordance with Covenant’s Search and Inspection Policy. Therefore, employees have no reasonable expectation of privacy with respect to Covenant vehicles.

9.26 Personal Protective Equipment

All Personal Protective Equipment (“PPE”) must be maintained in a condition for its safe use and in compliance with health and safety ordinances. Additional required safety items employees may be required to be used such as: safety vest, hard hat, safety glasses and noise protectors. (Refer to the HSE Manual for additional information). Accessories such as rings, necklaces, bracelets, and earrings shall not be worn in the field and/or while operating machinery. Covenant may institute more stringent dress requirements for reasons of safety. Employees are not authorized to modify or deface Covenant-supplied clothing. This includes, but is not limited to, adding patches, symbols or marking up any issued uniform or safety issued items.

9.26.1 Uniform Attire

Many employees may be required to wear Covenant-issued uniforms in the performance of their duties. If uniforms are required, they will be supplied by Covenant. These uniforms are to be worn during regular working hours. All uniforms must be clean, not faded, torn or with holes. Upon separation from the Covenant, all uniforms are to be returned to the HSE Department and/or the Human Resources Department.

9.26.2 Footwear

Covenant requires all employees who work in the field to wear footwear that meets OSHA safety standards and regulatory requirements. Covenant may reimburse up to $150.00 for steel toe safety boots.

9.27 Inclement Weather

Employees are expected to remain aware of weather-related risks and communicate the impact to supervisors immediately (phone call, text, email, or HazardScout notification) if pertinent changes impact themselves, or the operation they support. If Covenant is open for business an employee will not be paid for the day(s) unless he/she has accrued Paid Time Off (PTO) and in compliance with the PTO Policy. (Refer to PTO Policy for additional information). When a decision is made to close an office or site after the work day has begun, the following practices will be followed: In the event Covenant locations remain closed for more than one day, non-exempt employees may use available PTO time.

9.28 Searches and Inspections Searches and inspections may be: • • •

Conducted on company or customer property, at any time, by company or customer supervisors or authorized search and inspection specialists including scent trained animals. Unannounced searches or inspections of company or customer personnel and their property, which may include, but is not limited to: wallets, purses, lockers, baggage, offices, desks, toolboxes, clothing and vehicles. Employees have the right to refuse being searched or having their personal effects searched or to cooperate in the requested tests; however, refusal to allow such searches or to cooperate in such lawfully permitted searches by any employee will be cause for disciplinary action, up to and including immediate termination.

9.29 Workplace Surveillance and Monitoring

The Company is responsible for ensuring the safety of individuals and the security of the equipment and

property within the scope of the services provided. Company affiliates and customers may have similar policies for their locations. The following means will be used in the Company’ s monitoring and surveillance efforts: Camera Surveillance is surveillance by means of a camera that monitors or records visual images of activities on or around the work premises; Computer surveillance is surveillance by means of software or other equipment that monitors and records the information input and/or output, (including but not limited to the sending and receipt of e-mails and the accessing of Internet websites); Tracking surveillance is surveillance by means of an electronic device. The primary purpose is to monitor and record geographical location and/or movement (such as Global Positioning System tracing device); and; Phone Monitoring is surveillance of inbound and outbound calls made via the Company office or assigned cell phone. Phone monitoring also entails Global Positioning System tracking. (Refer to Data Protections and Information Technology Policy for additional information).

9.30 Photograph and Publicity Release

The Company and its affiliates reserve the right to use the Employee’s name, likeness, image, voice, and/or appearance as such may be embodied in any photos, video recordings, audiotapes, digital images taken or made on behalf of the Company’s activities. The Employee agrees that the Company has complete ownership of all information previously mentioned, including the entire copyright, and may use them for any purpose consistent with the Company’s missions. These uses include, but are not limited to illustrations, bulletins, exhibitions, videotapes, reprints, reproductions, publications, advertisements, and any promotional or educational materials, presently available and/or later developed, including the Internet. The Employee acknowledge that he/she will not receive any compensation for the use of such content and hereby releases the Company and its affiliates from any and all claims which arise out of or are in any way connected with such use. (Refer to the Surveillance and also Copyright Policy for additional information).

9.31 Use of Personal Information on Internet Based Platforms and Websites

The Employee understands that the personal information that is provided upon the employment process on all the electronic forms will be used for creating credentials and access to the Company’s platforms 56

and systems. The information is used to facilitate and simplify the data process related with employment, job duties, benefits, taxes purposes, and the communication between the Employee and management. Personal information may include data such as the Employeeâ&#x20AC;&#x2122;s full name, age, driver license number, social security number, bank account numbers, and third persons information. The Employees understands the personal information will be used in a manner consistent with the privacy provisions of the Freedom of Information and Protection of Privacy Act. This information will be retained in accordance with approved Records and Information Management guidelines, after which it will be destroyed or archived in a secure manner.

SECTION: 10-EXPENSE REIMBURSEMENT Covenant will reimburse employees for reasonable pre-approved business expenses. Covenant expects that an employee treats the use of funds for travel as they would their own resources. Covenant strongly encourages use of travel discounts when making travel arrangements. Employees seeking reimbursement should incur the lowest reasonable travel expenses and exercise care to avoid impropriety, or the appearance of impropriety. Reimbursement is allowed only when reimbursement has not been, and will not be, received from other sources. If a circumstance arises that is not specifically covered in this travel policy, then the most conservative course of action should be taken. Business travel policies are aligned with company reimbursement rules. All business-related travel paid with Covenant funds must comply with company expenditure policies.

10.1 Authorization and Responsibility

Employee travel must be authorized by a District Manager or above. Employees should verify that planned travel is eligible for reimbursement before making travel arrangements. Within 30 days of completion of a trip, the employee must submit supporting documentation to obtain reimbursement of expenses through Concur. Travel and reimbursement for members of the management team will be administered by a blanket policy that may adjust regularly as reported on weekly operational calls. Designated approval authorities are required to review expenditures and withhold reimbursement if there is reason to believe that the expenditures are inappropriate or extravagant.

10.2 Personal Funds

Employees should confirm Covenantâ&#x20AC;&#x2122;s reimbursement guidelines before spending personal funds for business travel to determine if such expenses are reimbursable. Covenant reserves the right to deny reimbursement of travel-related expenses for failure to comply with policies and procedures. Employees who use personal funds to facilitate travel arrangements will not be reimbursed until after the trip occurs and proper documentation is submitted.

10.3 PTO in Conjunction with Business Travel

In cases in which PTO is added to a business trip, any cost variance in airfare, car rental or lodging must be clearly identified on the Travel Request form. Covenant will not prepay any personal expenses with the intention of being repaid at a later time, nor will any personal expenses be reimbursed.

10.4 Airfare

Employees are expected to obtain the lowest available airfare that reasonably meets business travel needs. Airfare may be prepaid by the business office. Employees are encouraged to book flights at least 57

30 days in advance to avoid premium airfare pricing. First-class tickets are not reimbursable unless directly approved by executive management. Coach class or economy tickets must be purchased for domestic flights (defined as flight time totaling less than five consecutive hours, excluding layovers). A less-than-first-class ticket (i.e., business class) may be purchased with Covenantâ&#x20AC;&#x2122;s discretion for domestic or international flights.

10.5 Vehicle Rental

Covenant will pay for approved use of a rental vehicle. (Refer to the section on reimbursements below in this section).

10.6 Conference Fees

Conference registration fees can be prepaid with a credit card or check through Covenant. Businessrelated banquets or meals that are considered part of the conference can be paid with the registration fees; however, such meals must be deducted from the employees per diem allowance. (Refer to Meals and Per diem for more information).

10.7 Travel Advances

Cash advances are authorized for specific situations that might cause undue financial hardship for business employees. These situations are limited to employees traveling on behalf of Covenant. A maximum advanced percent of the total estimated costs may occur. Travel and reimbursement for members of the management team must be approved by the Division Vice President. Designated expenses associated with the travel must be reconciled and substantiated within two weeks of the return date. The employee must repay Covenant for any advances in excess of the approved reimbursable expenses. The department initiating the travel is responsible for notifying the business office to deposit any excess funds into the appropriate departmental account. Travel advances are processed by submitting a completed Request for Payment form and Travel Request form to the business office. Reimbursement for any remaining expenses is processed on a Travel Reimbursement form approved by the designated approval authority.

10.8 Reimbursements

Requests for reimbursements of travel-related expenses are submitted through Concur with all supporting receipts. Reimbursement of travel expenses is based on documentation of reasonable and actual expenses supported by the original, itemized receipts where required. Reimbursement for use of a personal automobile is based on the IRSâ&#x20AC;&#x2122;s mileage rate. Covenant authorizes reimbursement for the most economic vehicle available. In certain circumstances, larger vehicles may be rented with supervisor approval. The rental agreement must clearly show the date and the points of departure/arrival, as well as the total cost. Drivers must adhere to the rental requirements, and restrictions must be followed. Original receipts are required. Covenant carries collision damage (CDW) and loss damage coverage LDW; therefore, employees renting a vehicle for business purposes should waive (CDW) and (LDW). Drivers should be aware of the extent of a coverage, if any, provided by his/her automobile insurance company for travel that is business related, or not personal in nature. 58

Parking fees, tolls and other incidental costs associated with the vehicle use are not covered by the rental agreement. Employees are strongly encouraged to fill the gas tank before returning a vehicle to the rental agency to avoid service fees and more expensive fuel rates.

10.9 Lodging

The cost of overnight lodging (room rate and tax only) will be reimbursed to the employee if his/her supervisor authorizes the costs. Covenant will reimburse lodging expenses at reasonable, single occupancy or standard business room rates.

10.10 Per Diem

Employees who travel on behalf of Covenant will be provided with a daily per diem. Receipts are not required for per diem allowances.

10.11 Business Meals

Employees should use discretion regarding his/her meal selection. Original, itemized receipts are required, along with a list of attendees.

10.12 Business Expenses

Business expenses, including faxes, photocopies, Internet charges, data ports and business telephone calls incurred while on travel status can be reimbursed. Original, itemized receipts are required. The following items that may be associated with business travel will not be reimbursed by Covenant: • • • • • • • • • • • • •

Airline club memberships; Airline upgrades; Business class for domestic flights or first class for all flights (unless previously approved by executive management); Child care, babysitting, house-sitting, or pet-sitting/kennel charges (unless previously approved by executive management); Commuting between home and the primary work location; Costs incurred by employee’s failure to cancel travel or hotel reservations in a timely fashion; Evening or formal wear expenses; Haircuts and personal grooming; Laundry and dry cleaning; Passports, vaccinations and visas when not required as a specific and necessary condition of the travel assignment; Personal entertainment expenses, including in-flight movies, headsets, health club facilities, hotel pay-per-view movies, in-theater movies, social activities and related incidental costs; Travel accident insurance premiums or purchase of additional travel insurance; and Other expenses not directly related to the business travel.

10.13 Travel for Non-Employees

Additional costs for travel, lodging, meal or other travel expenses for spouses or other family members will not be reimbursed unless the individual has a bona fide company purpose for engaging in the travel or attending the event or is specifically approved by a member of executive management. 59

Employees should treat any business-related expense as if all the costs were coming out of his/her personal funds and use proper judgment on any approved Covenant business trip. Failure to comply with Covenant’s expense policy may result in the employee not being reimbursed for expenses, no longer being authorized to travel on behalf of Covenant and/or disciplinary action. Employees should always have the approval of his/her supervisor prior to initiating any travel plans. (Contact your supervisor for further information and/or refer to the Expense Reimbursement Policy for additional information).

SECTION: 11-DATA PROTECTION AND INFORMATION TECHNOLOGY 11.1 Use of Company Equipment

This policy provides clarification regarding personal use and misuse of Covenant property. The use of company equipment policy is intended to cover all types of Covenant property and services, including company owned or leased vehicles, supplies, telephones, cell phones, computer hardware, and software, equipment, mail, electronic mail and copying facilities, etc. No one shall be permitted to remove for personal use from the buildings or grounds any property belonging to Covenant, even though it may seem to be of no value. This includes use of Covenant equipment such as machinery, trucks, or other equipment during off-hours when it is not needed for Covenant. Telephone service and electronic mail is provided for conducting company business. Offices, work areas, files and materials (either in written or electronic form maintained or stored on Covenant premises or in computers or servers) may be entered, opened or reviewed without prior notice by authorized Covenant personnel either as part of maintenance or servicing procedures, to conduct company business or when there is a question about the use or misuse of Covenant property. Only employees with specified certifications may operate certain equipment that requires certification to utilize (i.e. DOT certification, heavy machinery certification). Loss, damages, or theft of Covenant property should be reported immediately. Negligence in the care and use of company property may be grounds for disciplinary action, up to and including termination. Company issued uniforms, property, equipment, work products and documents in the employee’s possession or control are expected to be returned upon termination. Failure to return company owned items may result in lost wages. Employees are expected to follow all safety guidelines set forth in SOP’s and the HSE Manual when operating company equipment.

11.2 Internet, E-mail and Communication

All electronic communications on, or through Covenant’s electronic communications systems are considered the property of Covenant. This includes records and archives of communications and including those marked as deleted or purged.

11.3 Use of Company Telephones

Whether local or long distance, personal calls from Covenant telephones must not adversely affect the performance of the employee or the organization and must be of reasonable duration and frequency. Local personal telephone calls without additional cost to Covenant may be made and received by employees on an incidental or emergency basis if they are not detrimental to the interests of Covenant. 60

Long distance calls include any calls that are not local or free of charge to Covenant. Personal long-distance calls cannot be charged to Covenant extensions, authorizations numbers, or credit cards. Charging personal long-distance calls is strictly prohibited and may subject the employee to disciplinary action. Any personal long-distance calls are to be made at employees' own expense; e.g., charged to personal calling or credit cards, use personal cell phone, use a pay phone, etc. Should a personal long-distance call occur by accident or be necessary in the case of a personal emergency, the employee must notify their supervisor of the occurrence and promptly reimburse the expense through the Payroll Department.

11.4 Company Cellphones or Reimbursement of Personal Cellphones

Covenant issues individual cell phones to employees who are required to be in close contact with Covenant or customers for work related matters. Company-issued cell phones are the property of Covenant and need to be maintained and cared for as to not damage or incur expenses that typically could have been prevented. All employees are required to be professional and conscientious when using company or using his/her personal reimbursed for his/her personal cell phones. While cell phones are a necessary convenience of the business world, we require that our employees follow the guidelines listed below for their own and others safety. Cell phones issued by Covenant are Company property. Employees must comply with Covenant requests to make their company-issued cell phone available for any reason, including upgrades, replacement, or inspection. Employees who leave Covenant for any reason must turn in their company-issued cell phones.

11.5 Personal Use of Company-Issued Cellphone

Covenant issued cell phones are to be used only for business purposes. Although occasional, brief personal phone calls using a company-issued phone are permitted, personal use that exceeds this standard will result in discipline, up to and including termination. Employees are expected to reimburse Covenant for any costs or charges relating to personal use of their cell phone and data plan.

11.6 Security of Company-Issued Phones

Employees are responsible for the security of his/her company-issued cell phone and the information stored on them. Employees are required to keep his/her cell phone in a secure area and never leave the cell phone unattended or open where someone can access the cell phone or contents. If the employees Company-issued cell phone is lost or stolen, he/she must notify their supervisor and IT Department immediately (you can notify IT via helpdesk@ctest.com). When using a cell phone, remember that your conversations are not necessarily private. Those around you can hear your end of the conversation. To protect the confidentiality of Covenant information (and avoid annoying others), please make cell phone calls in a private place.

11.7 Usage

Employees who are issued or reimbursed for a cell phone understand the phones are issued for business use. Employees are expected to make every effort to not exceed the current contracted allowed minutes and/or date usage, currently limited to 4GB per month.

Cell phone bills are reviewed when they arrive, any employee who exceeds their contracted allowable minutes or data usage may be subject to additional usage review, to include his/her company issued cell phone privileges being revoked. Employees who leave Covenant, voluntarily or involuntarily are required to return his/her companyissued cell phone in the same manner as it was originally assigned.

11.8 Computers and E-mail

Personal use of Covenant computers and electronic mail should be restricted to incidental and emergency use. With the increasing use of electronic communications, employees should keep in mind that these messages and materials may be accessed as public records if located in Covenant facilities or equipment. In several cases, electronic messages written with the intent to be humorous, as well as personal or a private conversation, have become public, leading to subsequent disciplinary action and causing embarrassment to the individuals and Covenant. All communication should be done in a professional and non-discriminatory manner. The acceptable use of information technology resources policy provides additional guidance on the ethical and acceptable use of information systems at Covenant. Covenants equipment, such as cell phones, smart phones, air cards, telephones, wireless hubs, computer, e-mail systems, scanners, copiers, etc. are intended for business purposes only.

11.9 Misuse of Computer Resources

Covenant’ provided Internet, Intranet and e-mail access may not be used at any time for transmitting, retrieving or storing any communication of a discriminatory or harassing nature, or materials that are offensive, obscene or X-rated. Examples of offensive, obscene or X-rated materials include but are not limited to: • •

Items, either pictures, movies or text messages, which describe or depict nudity, sexual activity, sexual offenses against individuals or other situations involving a sex act, or which describe or depict other bodily functions or situations which are inappropriate in business setting. Knowingly transferring or allowing to be transferred to, from or within Covenant, textual or graphical material commonly considered child pornography.

Covenant prohibits employees to the use of the company’s Internet, Intranet and e-mail access to obtain material that is illegal, or is against federal, state or company policy to: • • • • • • • • •

For-profit and non-profit business activities including activities for service organizations not related to the job. Excessive use for private, recreational or personal activities. Gambling. Raising funds for political candidates or issues. Promoting political candidates in any way. Promoting personal political issues. Gathering information for furtherance of a crime. Circulating chain letters. Using personal e-mail accounts, such as Hotmail, Yahoo, AOL etc. without permission from the IT Department. 62

• • • • •

• • • •

• •

Using computer resources to create, access, download, or disperse derogatory, racially offensive, sexually offensive, harassing, threatening or discriminatory materials. Downloading, installing, or running security programs or utilities, which reveal weaknesses in the security of Covenant’s computer resources unless a job specifically requires it. Use of computers and User IDs for which there is no authorization or use of User IDs for purposes outside of those for which they have been issued. Attempting to modify, install or remove computer equipment, software, or peripherals without proper authorization. This includes installing any non-work-related software on Covenant’s owned or leased equipment. Accessing computers, computer software, computer data information, or networks without proper authorization, regardless of whether the computer, software, data, information, or network in question is owned by Covenant. (This means, if you use the networks to which Covenant has access or the computers at other sites connected to those networks for which you do not have authorization). Circumventing or attempting to circumvent logon procedures, and security regulations, or exceeding the system's capacity limits by downloading excessive materials. The use of computing facilities, User IDs, or computer data for purposes other than those for which they are intended or authorized. Breaking into another user's e-mailbox, or unauthorized personnel reading someone else's e-mail without permission. Sending fraudulent electronic transmissions, including but not limited to statements intended to mislead the receiver and are known to be untrue, fraudulent requests for confidential information, fraudulent submission of electronic purchase requisitions or journal vouchers, or fraudulent electronic authorization of purchase requisitions or journal vouchers. Violating any software license agreement or copyright, including copying or redistributing copyrighted computer software, data, or reports without proper, recorded authorization. Taking advantage of another user's naiveté or negligence to gain access to any UserID, data, software, or file that is not your own and for which you have not received explicit authorization to access. Physically interfering with another users’ access. Encroaching on or disrupting others' use of Covenant’s shared network resources by creating unnecessary network traffic (for example, playing games or sending excessive messages); excessive use of memory, bandwidth and disk space resources; interfering with connectivity to the network; modifying system facilities, operating systems, or disk partitions without authorization; attempting to crash or tie up a Covenant computer; damaging or vandalizing Covenant computing facilities, equipment, software, or computer files). Disclosing or removing proprietary information, software, printed output or magnetic media without the explicit permission of the owner. Reading other users' data, information, files, or programs on a display screen, as printed output, or via electronic means, without the owner's explicit permission. This does not prohibit supervisors having access to their employees' computers.

11.10 Copyright Issues

Employees must honor copyright laws regarding protected commercial software or intellectual property. Duplicating, transmitting, or using software not in compliance with software license agreements is considered copyright infringement. Employees shall not make copies of software or literature in violation of copyright laws without the full legal right to do so. Unauthorized use of copyrighted materials or 63

another person's original writings is considered copyright infringement. Copyrighted materials belonging to others may not be transmitted by employees on the Internet without permission. Users may download copyright material from the Internet and intranet sites as well as Covenant’s website with approval from the IT Department. Contact the IT Department for further information. (Refer to the Workplace Surveillance and Monitoring Policy for additional information).

11.11 Internet and E-Mail Use

Employees having access to the Internet and E-mail must acknowledge that all network activity is the property of Covenant and should not consider any Internet activity to be private. An electronic form of the Internet Use Agreement is accessible and is meant to ensure that every employee with Internet and E-mail access is familiar with Covenant’s policy. Each user is required to read and understand the policy and acknowledge by completing the form.

11.11.1 E-mailing

E-mail communication by employees of Covenant: • • • •

Must not contain material which may be construed as obscene under applicable laws, regulations or legislation, Must not contain statements about an individual that are false, defamatory, or could potentially damage the reputation of that individual, Must not discriminate or harass on grounds of sex, race, creed, age, religion, national origin, disability or any other protected characteristic as established by laws, regulations, or legislation, Must not be broadcast to contact or distribution lists if the message is of a non-business nature or contains attachment of a personal, discriminatory, libelous or obscene nature.

Covenant does not condone the distribution of non-business-related material, or material in violation of the above restrictions, to recipients within, or external to, the Covenant network. In addition, messages broadcast to numerous recipients in a contact or distribution list, especially when large files are attached, significantly impede the efficiency of the network to process other traffic. A violation of the e-mail policy will subject the sender, and/or possibly the recipient, to disciplinary action, up to and including termination.

11.11.2 E-mail Disclaimer

Covenant employees who are assigned an e-mail account are required to use the below e-mail disclaimer when sending e-mails to recipients outside of Covenant’s network (Below the signature logo, Candara font, size 8, Grey {RGB 166, 177, 180}): “This e-mail and any files transmitted with it are confidential and intended solely for the use of the individual or entity to whom they are addressed. If you have received this e-mail in error, please notify the system manager. This message contains confidential information and is intended only for the individual named. If you are not the named addressee, you should not disseminate, distribute or copy this e-mail. Please notify the sender immediately by e-mail if you have received this e-mail by mistake and delete this e-mail from your system. If you are not the intended recipient, you are notified that disclosing, copying, distributing or taking any action in reliance on the contents of this information is strictly prohibited.”

11.12 Security

Covenant reserves the right to access and monitor any messages or files. Employees should not assume that electronic communications are private and should transmit highly confidential or personal information another way rather than by electronic means. Users are responsible for controlling the access to their computers, properly logging on and off the network, and not using another employee's UserID and passcode under any circumstances. (Refer to the Workplace Surveillance and Monitoring Policy for additional information).

11.13 Use of Social Media

Covenant’s social media policy provides a framework for using social media. Social media may include, but not limited to: • • • • • • • • • • •

Social networking sites (i.e. Facebook, LinkedIn, SnapChat, etc.) Video and photo sharing websites (i.e., YouTube, Instagram, etc.) Blogs, including personal or business Micro-blogging (i.e., Twitter) Forums, discussion boards, and groups (i.e., Google groups) Podcasting Chatrooms Instant messaging (i.e., SMS, Facebook Messenger) Forums, discussion boards and groups (i.e., Google groups) Online multiplayer gaming platforms Geo-spatial tagging (i.e., Foursquare)

Employees need to have read and adhere to Covenant’s Code of Conduct, Employee Handbook, and other company policies when using social media. Employees should be aware of the effect their actions may have on their images, as well as Covenant’s image; as information that employees post or publish may be public information for a long time. Covenant reserves the right to observe content and information made available by employees through social media. Employees should use their best judgment in posting material that is neither inappropriate nor harmful to Covenant, its employees, vendors or customers. Although not an exclusive list, some specific examples of prohibited social media conduct include: • • • •

Posting commentary, content, or images that are defamatory; Pornographic, proprietary, harassing, libelous; Which can create a hostile work environment; or Photos of well sites and/or job sites.

Employees are not to publish, post or release any information that is considered confidential or not public. If there are questions about what is considered confidential, employees should check with the Human Resources Department and/or his or her supervisor. Social media networks, blogs and other types of online content sometimes generate press and media attention or legal questions. Employees should refer these inquiries to authorized representative.

If an employee encounters a situation while using social media that threatens to become antagonistic, employees should disengage from the dialogue in a polite manner and seek the advice of a supervisor and or the Human Resources Department. Employees should get appropriate permission before referring to or posting images of current or former employees, members, vendors or suppliers. Additionally, employees should get appropriate permission to use a third party's copyrights, copyrighted material, trademarks, service marks or other intellectual property (Refer to Covenant’s Inventions and Creative Works Policy for additional information). Social media use should not interfere with employee’s work responsibilities at Covenant. IT helpdesk@ctest.com 832-500-3126

SECTION: 12-TERMINATION OF EMPLOYMENT 12.1 Types of Terminations

Termination of employment is an inevitable part of personnel activity within any organization, and many of the reasons for termination are routine. Below are a few examples of some of the most common circumstances of unacceptable behavior that can or will result in disciplinary action, up to and including termination.

12.1.1 Voluntary Resignation

A voluntary employment termination initiated by an employee, to include job abandonment. When an employee voluntarily terminates his/her employment, Human Resources would like the opportunity to discuss the resignation through an exit interview.

12.1.2 Involuntary Termination

Involuntary employment termination initiated by Covenant for violation of any company policy.

12.1.3 Job Abandonment

Is defined when the employee has not been to work for 3 consecutive days or notified the Human Resources Department and/or his/her supervisor of their absence.

12.1.4 Layoff

Involuntary employment termination initiated by Covenant for non-disciplinary reasons.

12.2 Exit Interviews

To assist Covenant in identifying workplace, organizational or human resources factors that have contributed to an employee's decision to leave employment and provide opportunities for improving Covenant’s ability to respond to employee issues; and to allow Covenant to make improvements. Covenant appreciates that the employee resigning provides a 2-week notice. PTO may not be included in the two-week notice period.

12.3 Return of Company Issued Property

Upon termination, employees are required to return the following, if the items were issued during any point in his/her employment: • •

Equipment, tools and other company property issued in working order; Laptops, iPads, cell phones, etc. ; 66

• • •

Uniforms and issued PPE; Company credit card; and Fuel card.

All company property issued to an employee should be returned to a designated Company representative and not left in an unapproved and/or unsecure location upon termination; as well as to the same location where the property was issued. Should items be left in an unapproved and/or unsecure location, unreturned items may be reported to the local authorities. Any damages caused to Company property due to negligence, carelessness or willful and intentional misconduct will be the responsibility of the employee; as well as any accrued costs to the Company for having to make arrangements to transport items to the designated location.

12.4 Rehire Eligibility

Former employees may reapply for employment openings. Previous employees who are rehired will be treated as a new hire regarding compensation, leave, accrued vacation, benefits and all other terms and conditions of employment; having forfeited his/her original hire date. Rehired employees will be required to submit to the pre-employment testing i.e., drug and alcohol test, criminal background and physical performance test in the same manner as new hires, regardless of length of time from original hire and termination date. If the original termination was due to a negative drug and/or alcohol result, the former employee will be required to follow the EPCC policy regarding rehire eligibility. (Refer to the EPCC Substance Abuse Policy for additional information). The Region Vice President and the Director of Human Resources will need the former employee’s request for rehire prior to an offer of employment being extended. Covenant reserves the right to decline the rehire for any reason.

SECTION: 13-MOTOR VEHICLE USAGE FOR COMPANY BUSINESS 13.1 Motor Vehicle Requirements

Motor vehicle records will be obtained for all approved Covenant drivers prior to employment and periodically thereafter. An employee whose driving record fails to meet the DOT required criteria will not be permitted to drive on behalf of Covenant. Any employee returning from FML, ADA and/or Workers’ Compensation may be required to complete a company road test and or trailer movement test.

13.2 Company Vehicle Use

Covenant provides vehicles for business use to allow employees to drive on company-designated business and to reimburse employees for business use of personal vehicles according to the guidelines below. Covenant retains the right to amend or terminate this policy at any time. (The term "vehicle," as used in these guidelines, includes, but is not limited to, cars, trucks, backhoes, front-end loaders, graders and any motorized watercraft). Employees may not drive any business vehicles without prior approval of their supervisor. Only employees with a current state issued driver’s license and who have adequate insurance coverage may operate Covenant vehicles or use a vehicle to conduct company business (Covenant reserves the right to compute 67

and update coverage requirements). Personal use of a company vehicle is prohibited. (Refer to the Vehicle Policy in the Safety Manual for additional information). Employees approved to drive on company business are required to inform their supervisor of any changes that may affect either their legal or physical ability to drive or their continued insurability. Employees holding jobs requiring regular driving for business as an essential job function must, as a condition of employment, be able to meet the driver approval standards of this policy at all times. Employees who drive a vehicle on company business must, in addition to meeting the approval requirements above, exercise due diligence to drive safely and to maintain the security of the vehicle and its contents. Use of handheld cell phones (including texting) while behind the wheel of a moving vehicle being used on company business is strictly prohibited. Employees are responsible for any driving infractions or fines because of his/her driving. Damage to Company vehicles by any employee may result in the collection of associated fees for repairs. Non-employees and non-business passengers (i.e., family and friends) are prohibited from riding in company vehicles.

13.3 Company Vehicle Use While on Leave

While out for any type of leave, employees are not permitted to use their assigned company vehicle and must return the vehicle to the Fleet Department and/or an authorized Company representative; unless written authorization by the Division Vice President and/or above is given.

13.4 Company Issued Fuel Card A company issued fuel card is only authorized to fuel company vehicles only. Employees understand that each fuel card is assigned only to be used by that specific employee and that employee is never to share his/her fuel pin number. Employees are responsible for keeping up with his/her assigned fuel card and if the fuel card is lost or misplaced the employee must immediately notify his/her supervisor and/or the Fleet Department. Employees understand that the fuel card is not to be used for personal vehicles or non-business purposes. Using the Company issued fuel card for any purpose other than official business will be considered theft of company property. Employees understand to completely fill the vehicleâ&#x20AC;&#x2122;s fuel tank and enter an accurate odometer reading. Fuel cards are assigned to either an individual company vehicle or specific fueling purpose (example; off road equipment fuel card) and the use of the fuel card shall be restricted to purchase of fuel for business and be limited to regular unleaded or the recommended manufacturers fuel type. Authorized Driver is defined as: any employee who operates a company-owned vehicle, company-leased vehicle and/or employees who regularly and routinely travels as part of his/her essential job duties for the Company. Upon termination and/or while out on leave, employees are not permitted to use his/her issued fuel card. Employees will be required to repay the Company for any unauthorized charges. Failure to comply may result in disciplinary action.

13.5 Personal Vehicle Allowance (PVA)

Employees who are approved to use their personal vehicles for approved business purposes will receive a monthly PVA rate to cover maintenance, insurance and any other operating costs incurred. In limited circumstances, non-field employees may receive the IRS mileage rate for limited use of their personal vehicle. Employees who operate personal vehicles for Covenant business should obtain auto liability coverage for bodily injury and property damage with a special endorsement for business use, when necessary as determined by their personal insurance agent for the state(s) they operate in.

SECTION: 14-EMPLOYEE CONDUCT 14.1 Poor Performance

Employees may be disciplined, up to and including termination from employment, for poor job performance, including but not limited to: • • •

Unsatisfactory quality or quantity of work; Repeated unexcused absences or lateness; and Failing to follow instructions or company procedures.

14.2 Misconduct

Employees may be disciplined, up to and including termination from employment for misconduct, including but not limited to: • • • • • • • • • • • • • • • •

Falsifying and/or providing misleading or incomplete information on an employment application or any other company record or document. Failing to record work time accurately or recording a co-worker’s timecard. Insubordinate or other refusal to perform duties. Any action that violates Covenant’s policy against harassment and other unlawful forms of discrimination. Disorderly conduct, fighting or other acts of violence. Misusing, destroying or stealing Covenant’s, customers, vendors, suppliers or another person’s property. Possessing, entering with or using weapons on Covenant or customer’s property or premises. Making threats of violence or committing any violent act on Covenant premises or in furtherance of Company business. Possessing, selling, using or reporting back to work with alcohol, controlled substances or illegal drugs present in the employee’s system, on company property or on company time. Theft or other criminal behavior including revealing trade secrets. Violating conflict of interest policies. Disclosing or using confidential or proprietary information without authorization. Violating Covenant’s computer, software or internet use policies. Being convicted of a crime that indicates unsuitability for a job or presents a threat to Covenant or its employees in any way. Sleeping during hours in which the employee should be working. Leaving assigned post unattended without notifying a supervisor in advance.

Need assistance? As a friendly reminder, you can always contact the following departments:

HR hr@ctest.com 832-500-3115 832-500-3239 832-240-3236 Benefits benefits@ctest.com 832-240-2213 Payroll payroll@ctest.com 832-240-2268 832-240-2261

IT helpdesk@ctest.com 832-500-3126 Chaplain covenantcares@ctest.com 832-500-3278

Safety qhse@ctest.com 832-500-3107

Employee Handbook Acknowledgment I acknowledge that I have received Covenant Testing Technologies, LLC Employee Handbook (“Handbook”) and have read and understand the policies contained herein. The Handbook describes important information and I understand that I should consult the Human Resources Department regarding any questions not directly addressed and/or answered by the Handbook. I have entered into my employment relationship with Covenant Testing Technologies, LLC (“Covenant) voluntarily and acknowledge that there is no specified length of employment. Accordingly, either I, or Covenant may terminate the employee-employer relationship at will, with or without cause, at any time, so long as there is no violation of applicable Federal or state law. I also understand that violation of any Covenant Testing Technologies, LLC’s policies may lead to disciplinary action, up to and including termination. I understand and agree that other than the CEO of Covenant, or other designated representative of the Company, no manager, supervisor, or representative of Covenant has any authority to enter into any agreement for employment other than at-will. Only the CEO of the Company has the authority to make any such agreement and then only in writing, signed by the CEO of Covenant. This Handbook and the policies and procedures contained herein supersede all prior practices, oral or written representations, or statement regarding the terms and conditions of my employment with Covenant. By distributing this handbook, Covenant expressly revokes all previous policies and procedures which are inconsistent with those contained herein. I have received the Handbook, and I understand that it is my responsibility to read and comply with the policies contained in this Handbook and any revisions made to it.

_________________________________________________ Employee Signature _________________________________________________ Employee Name _________________________________________________ Date