DRUG-FREE WORKPLACE POLICY AND PROGRAM

In compliance with Article V of Republic Act No. 9165, otherwise known as the
Comprehensive Dangerous Drugs Act of 2002, and its Implementing Rules and Regulations and
DOLE Department Order No. 53-03, series of 2003 (Guidelines for the Implementation of a
Drug-Free Workplace Policies and Programs for the Private Sector), Montana Golden Real
Estate Developer Company, Inc. (the “Company”) hereby adopts the following policies and
programs to achieve a drug-free workplace:

I. COMPANY POLICY ON DRUG-FREE WORKPLACE

The Company expressly prohibits:

 The use, possession, solicitation, sale, or introduction in any way, of dangerous drugs in
the workplace and all other places.
 Being impaired or under the influence of dangerous drugs in places other than the
workplace, if such impairment or influence adversely affects the safety of other
employees or others, or puts the Company's reputation at risk.

II. DEFINITION OF TERMS

For purposes of this policy and program, the following terms shall mean:

 Assessment Team - A group of employees of the Company composed of the

occupational safety and health personnel/operations head, human resource
manager/representative, and any personnel who is trained to address all aspects of
prevention.

 Dangerous Drugs – refer to those listed in the Schedules annexed to the 1961 Single
Convention on Narcotic Drugs, as amended by the 1972 Protocol, and in the Schedules
annexed to the 1971 Single Convention on Psychotropic Substances as enumerated in
the attached annex of R.A. 9165, including those substances and/or drugs that the law
may regard as dangerous in the future.

 Workplace – any office or property owned, leased, or operated by the Company,

including its principal place of business, properties, or job sites, including their parking
areas, or inside the Company motor vehicles and motorized equipment, or at any other
places where the employee works and/or acts in a representation capacity for the
Company.

 Near Miss – an incident that could have led to an injury or fatality of any person and/or
substantial damage to the reputation or properties of the Company had it not been
prevented.

 Work Accident – refers to an unexpected occurrence that may or may not result in
personal injury, property damage, work stoppage or interference, or any combination
thereof, which occurs in the course of employment.

III. COMPANY PROGRAM ON DRUG-FREE WORKPLACE

A. Mandatory Drug Test

1. To ensure that only those qualified shall be screened and recruited to prevent the
detrimental effects (e.g. lower productivity; poor decision making; increased accidents;
more compensation claims; and reduced team effort) due to the use and abuse of
dangerous drugs, the Company shall require the submission of a negative drug test
result as an indispensable requirement for pre-employment.

2. The drug test must be conducted by a testing center duly accredited by the
Department of Health (DOH) for such purpose and authority, the result of which must be
submitted to the Company within three (3) working days from the issue date.

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 3. It shall be the duty of the Human Resource and Administration Department
(HRAD) to inform the selected candidate about the requirements mentioned in
paragraphs 1 and 2.

B. Other Drug Testing Methods

The Company may also conduct drug testing under any of the following methods:

1. Random Drug Testing – To maintain the quality and effectiveness of the

workforce, the Company may randomly select officers and/or employees for drug testing
at any interval and during working hours.

2. Cause Testing – The Company may request an officer or employee to submit

himself/herself to a drug test at any time if the former suspects that the latter may be
under the influence of dangerous drugs. The following circumstances may be
considered:

a. Evidence of drugs on the employee's person or in the employee's immediate

vicinity;
b. Unusual conduct or appearance on the employee's part that suggests impairment
or influence of drugs;
c. Severe negative performance patterns that result in damage to or loss of Company
properties;
d. Excessive, unexplained, and unusual absences or tardiness;
e. Commission of or involvement in a crime based on reports from authorities; and/or
f. Other analogous circumstances that may be considered.

3. Post-Accident Testing – Any officer/employee involved in a “Near-Miss”

incident or “Work Accident” under circumstances that suggest possible use or influence
of drugs may be asked to submit to a drug test.

Provisions common to the three other drug testing methods:

1. All drug tests shall employ, among others, two (2) testing methods, the screening test
which will determine the positive result, as well as the type of the drug used, and the
confirmatory test which will confirm the positive screening test. Where the confirmatory
test turns positive, the Company’s Assessment Team shall evaluate the results and
determine the level of care and administrative interventions that can be extended to the
concerned employee.

2. An officer or employee who refuses to undergo such testing shall be required to submit a
written explanation to the HRAD Manager as to why he/she does not want to participate,
otherwise, if the explanation is not acceptable, said employee shall be subjected to
disciplinary proceedings.

3. The Company shall exclusively inform the officer/employee who was subjected to a drug
test of the results whether positive or negative. The Company shall likewise provide the
officer/employee with a copy of such results, which shall remain confidential unless
requested by the proper authorities.

4. All costs, expenses, and fees related to the drug testing shall be shouldered by the
Company, except for the pre-employment requirement.

5. The conduct of other methods of drug testing, however, does not necessarily expand,
add, or modify the management prerogatives of the Company or the authority of its
representative/s over the company employees. Any officer or authorized representative
who is found to have abused his/her authority under this policy and program shall be
subjected to disciplinary proceedings with a penalty higher than that of the prescribed
penalty for insubordination, or termination of employment, depending on the severity and
effects of such abuse.

IV. TREATMENT, REHABILITATION, AND REFERRAL

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 1. An officer or employee who, for the first time, is found positive for drug use, shall be
referred for treatment and/or rehabilitation in a DOH-accredited center. For this purpose,
the Company shall provide a list of at least three (3) accredited facilities which an
employee who tested positive for drugs may choose from.

2. Following rehabilitation, the Company’s Assessment Team, in consultation with the head
of the rehabilitation center, shall evaluate the status of the drug-dependent employee
and recommend to the employer the resumption of the employee’s job if he/she poses
no danger to his/her co-employees and/or the workplace.

3. All costs for the treatment and rehabilitation of the drug-dependent employee shall be
charged to his account. The period during which the employee is under treatment or
rehabilitation shall be considered as authorized leave.

4. Repeated drug use even after ample opportunity for treatment and rehabilitation shall be
dealt with the corresponding penalties under R.A. 9165 and is a ground for termination
of employment, after renewed testing and due process. The termination of employment
shall not bar the filing of an actual criminal case against the officer or employee by law
enforcement authorities, including the necessary participation of the Company, through
its representatives, until the finality of the case.

V. ADVOCACY, EDUCATION AND TRAINING

The Company undertakes to increase the awareness and education of its officers and
employees on the adverse effects of dangerous drugs through continuous advocacy, education,
and training programs/activities to all its officers and employees.

1. All officers and employees are required to undergo an orientation/education program

before assuming their respective duties. The program shall include the following topics:

i. Salient features of R.A. 9165;

ii. Adverse effects of abuse and/or misuse of dangerous drugs on the person,
workplace, family, and community;
iii. Preventive measures against drug abuse; and
iv. Steps to take when intervention is needed, as well as available services for
treatment and rehabilitation.

2. To encourage all officers and employees to lead a healthy lifestyle while at work and
home, The Company undertakes to conduct the following activities as often as possible:

i. Lifestyle assessment programs on health nutrition, weight management, stress

management, alcohol abuse, smoking cessation, and other indicators of risk
diseases;
ii. Health wellness screenings (e.g. blood pressure and heart rate, cholesterol test,
blood glucose, etc.);
iii. Sports, recreational, and fun-game activities; and
iv. Other activities promoting health and wellness.

VI. ROLES, RIGHTS AND RESPONSIBILITIES OF EMPLOYER AND EMPLOYEES

1. The Company shall ensure that workplace policies and programs on the prevention and
control of dangerous drugs, including drug testing, shall be disseminated to all officers
and employees. The employer shall obtain a written acknowledgment from the
employees that the policy has been read and understood by them.

2. The Company shall maintain the confidentiality of all information relating to drug tests or
the identification of drug users in the workplace; exceptions may be made only where
required by law, in case of overriding public health and safety concerns; or where such
exceptions have been authorized in writing by the person concerned.

3. All officers and employees shall enjoy the right to due process, the absence of which will
render the referral procedure ineffective.

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VII. CONSEQUENCES OF POLICY VIOLATIONS

1. Any officer or employee who uses, possesses, distributes, sells, or attempts to sell,
tolerate, or transfer dangerous drugs or otherwise commits other unlawful acts as
defined under RA 9165 and its Implementing Rules and Regulations shall be subject to
the pertinent provisions of the said Act.

2. Any officer or employee found positive for use of dangerous drugs shall be dealt with
administratively by the provisions of Article 297 (282) of Book VI of the Labor Code and
under RA 9165.

VIII. MONITORING AND EVALUATION

The implementation of these policies and programs shall be monitored and evaluated
periodically by management to ensure a drug-free workplace. For this purpose, an Assessment
Team shall be constituted by D.O. 53-03 “Guidelines for the Implementation of a Drug-Free
Workplace Policies and Programs for the Private Sector”

IX. EFFECTIVITY

This Company policy shall take effect immediately upon its approval. All employees shall be
given a copy of this Policy and the Program.

Done this on the ____ day of _______________, 20___ in Quezon City, Philippines.

Prepared by: Siegfred C. Gesulga

HRAD Manager

Reviewed by: Atty. Wenceslao V. Maganam IV

VP for Legal and Operations

Approved by: Engr. Reynaldo A. Carpio

President