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8) Reasonable Searches: Reasonable searches of HEPACO premises, employees and others
on HEPACO property (including personal effects and vehicles) may be conducted. Refusal to
submit to a search can result in removal from HEPACO’s premises and disciplinary action up
to and including termination. Any employee in possession of a prohibited item or substance
(including alcohol) will be subject to disciplinary action up to and including termination.

F. DISCIPLINARY ACTIONS

1) Applicant Testing: If an applicant fails to cooperate during the testing process or fails to
report for testing as scheduled, this normally will result in termination of the application
process.
2) Positive Results – General: If, as a result of testing, an employee is found to have
identifiable traces (or, if applicable, the levels set by law) of a prohibited drug or substance in
his/her system, regardless of when or where the drug or substance was consumed, the employee
will be subject to discipline up to and including termination. If not terminated, mandatory
referral to the Employee Assistance Program (“EAP”) designated by HEPACO will be
required. Failure to comply with the EAP or a repeat offense of this policy will result in
termination. Any employee participating in an EAP will be tested as a follow-up to such
program.

3) Reasonable Cause Testing Results: Any employee who is tested for reasonable cause
will be suspended without pay pending the test results. If the test results are negative, the
employee may, at HEPACO’s discretion or in accordance with applicable laws, return to work
and be awarded his/her back pay. If the results are positive, the employee will remain
suspended pending confirmatory testing done in accordance with applicable laws. If the
positive results are confirmed, then HEPACO will determine the appropriate level of
disciplinary action.

4) Post-Accident or Random Testing Results: Any employee who tests positive on an
initial post-accident or random test will be suspended without pay pending the results of
confirmatory testing. If the positive results are not confirmed, the employee may, at
HEPACO’s discretion or in accordance with applicable laws, return to work and be awarded
his/her back pay. If the positive results are confirmed, then HEPACO will determine the
appropriate level of disciplinary action.

5) Follow-Up Testing: An employee who tested positive for drugs and entered a company-
approved rehabilitation program on a medical leave of absence may be considered for
reassignment following a documented successful completion of the rehabilitation program and
must test negative before returning to work or before re-employment.

Document No. 804: Drug and Alcohol Abuse Policy
Revised December 2000 Page 5