I have read the terms and conditions below and indicate my acceptance of them by entering my initials here:

The Department of Transportation regulations governing drug and alcohol testing programs (49 CFR Part 40) make it very clear that the Employer (also referred to as 'Company') is responsible for all aspects of compliance with the regulations. That applies even if a company such as Labworks USA has been designated as a service agent. It is critical that the Employer understand this concept. The responsibilities for each party are outlined below:

Responsibilities of Labworks USA:

1. Provide a Certificate of Enrollment documenting the Employer's participation in a DOT 49 CFR Part 40 compliant program.
2. Provide one ID card to each registered participant.
3. Provide a random selection process fully compliant with DOT regulations.
4. Provide Post Accident Cab Kits and replenish upon request.
5. Pre-Employment Testing - Provide all necessary forms, instructions and access to over 6,000 collection sites nationwide.
6. Aid in the Verification of Prior Violations by providing 'Release of Information' forms and support.
7. Update the consortium pool with Employer provided driver information and maintain 'Audit Ready' listing of participants.
8. Provide Chain of Custody forms as needed for all DOT required drug and alcohol testing.
9. Ensure all testing is completed by DOT compliant (SAMHSA) laboratory.
10. Provide a DOT certified Medical Review Officer (MRO) review for every test result.
11. Provide 24 hour a day post accident phone support.
12. Provide guidance and support for Reasonable Suspicion testing including training for supervisors.
13. Provide all test results ASAP and in a secured and confidential fashion as directed by the Employer.
14. In the event of a positive test result provide access to a network of DOT compliant Substance Abuse Professionals (SAP's) available in the Employer's area.
15. As directed by SAP provide Follow-up test notification and result monitoring.
16. Serve as the secondary custodian of all test records providing a back-up copy of the records as per DOT regulations.
17. Complete all DOT requested MIS reports as required, on schedule, and in the required formats.
18. Provide verification of compliance, participant names and any other available information to auditors as requested.

Responsibilities of Company (Employer or Owner Operator)

1. New Employees: Require employees complete a Pre-Employment drug test and receive a negative result prior to starting safety sensitive (driving) work.
2. Existing Employees: Maintain a legible copy of a Pre-Employment test result available for review and/or audit.
3. Complete Verification of Prior Violations process for each new employee.
4. Provide ongoing and timely information of all changes to the safety sensitive employee roster to Labworks USA.
5. Distribute Random Selection Notification letters to employees.
6. Ensure selected employees report for random testing by due date indicated.
7. Determine if a Post Accident drug and alcohol test is necessary following any accident.
8. Make the final determination whether or not to conduct a Reasonable Suspicion test.
9. Provide Labworks USA with a secure and confidential means to receive test results.
10. If an employee tests positive make the final determination on whether to refer employee to a SAP or terminate the employee.
11. Ensure an employee does not resume safety sensitive role prior to SAP approval.
12. Provide any and all training to each employee as per DOT regulations.
13. Ensure each supervisor receives the DOT required Reasonable Suspicion training through Labworks USA or another provider.
14. Serve as the primary custodian of the records as per the DOT regulations.
15. Ensure any test results not generated from Labworks USA are reported to Labworks USA.
16. Remain ultimately responsible for the outcome of any audit.

INVOICE TERMS

Invoices are due 30 days from invoice date. Payments received after the due date are subject to a rebilling fee of $10.00.

COLLECTION COSTS

Any reasonable expenses incurred by Labworks USA, or it's agents, for collecting past due amounts will be immediately due and payable by the Employer.

DISHONORED CHECK/AUTOMATIC PAYMENT CHARGES

Where permitted by law, Employer agrees to pay a $25.00 fee or other permitted maximum amount for (a) any dishonored or returned check or other item due to lack of funds in the maker's account or the failure of maker to have an account, or because maker stopped payment without good cause, and (b) any Automatic Payment authorized by Employer which is rejected or not honored by Employer's bank or credit card issuer for any reason, along with any costs and expenses incurred in connection with collection of such dishonored, returned or rejected check, other item or Automatic Payment.

GOVERNING LAW

This Service Agreement is governed by the laws of the state of Oregon.

CANCELLATION

Either party may cancel this agreement upon 30 days written notice.

ATTORNEY'S FEES

Both parties agree that should suit or action be instituted to enforce the terms of this Service Agreement, the prevailing party shall be entitled to reasonable attorneys' fees in such litigation, and on any appeal.

INDEMNIFICATION

Employer agrees to indemnify Labworks USA, its assignees, and vendors, and hold each of them harmless from and against any and all claims, demands, losses, damages, liabilities, costs, and expenses, including legal fees, arising out of or by reason of any breach or alleged breach by Labworks USA of any of the representations, warranties, or agreements made under this Service Agreement.

TERMS FOR EXPULSION FROM THE CONSORTIUM

Labworks USA strives to help keep Employers in compliance with the regulations however ultimately the responsibility lies with the Employer. Should the Employer fail to comply with the regulations as set forth by 49 CFR Part 40, Labworks USA reserves the right to expel the Employer from all Labworks USA random selection pools. Expulsion for any reason may result in immediate notification to the DOT.