Crew Member Application

DRUG AND ALCOHOL FREE WORKPLACE POLICY
I. POLICY STATEMENT
In an effort to help prevent accidents and injuries that may result from the misuse of alcohol, the use of
prohibited controlled substances, the unauthorized use or misuse of prescription medications, to promote
a drug and alcohol free workplace, and to comply with the Omnibus Transportation Employee Testing Act
of 1991, it is the policy of San Diego Yacht Crew Company. referred as (Company) to require drug and/or
alcohol testing in accordance with the rules and regulations promulgated by the U.S. Department of
Transportation (DOT), Maritime, as set forth in Title 46 Code of Federal Regulations (CFR), Part 4, 16,
and 49 CFR Part 40, 33 CFR 95 and/or such other rules and regulations applicable to Company as may
be promulgated from time to time.
This policy is applicable to all covered employees (as defined below) and shall take immediate effect. All
covered employees of Company will be provided with a copy of this policy together with educational
materials that explain the requirements of the policy and the requirements of Title 49 CFR, Part 40.
Materials concerning this policy will be available for inspection at the Company's Human
Resources/Personnel Department. It is a condition of employment for all covered employees that they
agree to the requirements of this policy.
Nothing in this policy shall lessen, be deemed to lessen, or otherwise diminish in any manner, Company's
right or ability to discipline an employee of Company in accordance with other policies of Company and
the minimum disciplinary sanctions provided for under the relevant DOT rules, regulations and
procedures described in this policy shall not diminish Company's ability to impose other and/or greater
sanctions upon an employee of Company, up to and including termination.
II. DEFINITION OF TERMS
When used in this policy, unless specifically defined elsewhere:
A. Accident i) One or more fatalities ii) An injury to a crewmember, passenger, or other person which
requires professional medical treatment beyond first aid and, in the case of a person employed on
board a vessel in commercial service, which renders the individual unfit to perform routine vessel
duties iii) Property damage in excess of $100,000 iv) Actual or constructive total loss of any
inspected vessel v) Actual or constructive total loss of any self-propelled uninspected vessel of 100
gross tons or more. vi) A discharge of oil into a navigable water excess of 10,000 gallons. vii) A
release of a Hazardous Substance greater than or equal to its reportable quantity into a navigable
water, whether from a casualty or not.
B. Alcohol means the intoxicating agent in beverage alcohol, ethyl alcohol, or other low molecular
weight alcohols including methyl and isopropyl alcohol.
C. Breath Alcohol Technician ("BAT") is an individual who is certified as trained to operate an
Evidential Breath Testing device (EBT) and who is proficient in breath-testing procedures.
D. Collection site means a place designated by Company where individuals present themselves for the
purpose of providing a specimen of their urine to be analyzed for the presence of controlled
substances, or for purposes of providing a or breath sample to be analyzed for alcohol concentration.
E. Commercial Motor Vehicle means a motor vehicle or combination of motor vehicles used in
commerce to transport passengers or property if the motor vehicle:
1. Has a gross combination weight rating of 11,794 or more kilograms (26,001 or more pounds)
inclusive of a towed unit with a gross vehicle weight rating of more than 4,536 kilograms (10,000
pounds); or
2. Has a gross vehicle weight rating of 11,794 or more kilograms (26,001 or more pounds); or
3. Is designed to transport 16 or more passengers, including the driver; or
4. Is of any size and is used in the transportation of materials found to be hazardous for the
purposes of the Hazardous Materials Transportation Act (49 U.S.C. 5103(b)), and which require
the motor vehicle to be placarded under the Hazardous Materials Regulations (49 CFR Part 172,
Subpart F).
F. Contractor means any individual or business entity with whom Company contracts to perform an
operating function as regulated by 46 Code of Federal Regulations (CFR), Part 4, 16, and 49 CFR
Part 40, 33 CFR 95, for the Company as an independent contractor or subcontractor.
G. Controlled Substance means one or more of the following five drugs or classes of drugs: (a)
Marijuana metabolites; (b) Cocaine metabolites; (c) Amphetamines; (d) Opiate metabolites; (e)
Phencyclidine (PCP); (f) MDA-Analogues; and/or (g) 6-Monoacetylmorphine.
H. Covered Employee An individual who is either; (a) On board a vessel acting under the authority of a
license or merchant mariner’s document issued under this subchapter, whether or not the individual is
a member of the vessel’s crew.
For example: License holders - The operator of an uninspected towing vessel, the master of a 500
gross ton ocean going vessel, or the operator of an uninspected passenger vessel [6-pack]; Merchant
Mariner Document - able bodied seaman or tankerman.
(b) Engaged or employed on board a vessel owned in the United States that is required by law or
regulation to engage, employ, or be operated by an individual holding a license, certificate of registry,
or merchant mariner’s document issued under this subchapter. (Simply stated, if your vessel is
required by law to be operated by a USCG licensed or documented mariner, personnel operating the
vessel, including yourself, if self-employed, are subject to drug testing.)
I. Designated Employer Representative ("DER") means an employee of Company authorized to take
immediate action(s) to remove employees from safety-sensitive functions and to make required
decisions in the testing and evaluation processes.
A DER also receives test results, SAP reports, and other communications on behalf of Company.
Company's primary DER is the Director, Human Resources Services, but Company may, if needed,
designate additional personnel to serve as DERs.)
J. DOT means the United States Department of Transportation, which administers compliance with Title
V, of the Omnibus Transportation Employee Testing Act of 1991.
K. DOT rules, regulations and procedures means the rules, regulations and procedures established
by U.S. Department of Transportation (DOT) in 46 CFR Parts 4 and 16.
L. Licensed medical practitioner shall have the meaning set forth in 49 CFR Part 382.107 and
generally means a person who is licensed, certified, and/or registered, in accordance with applicable
Federal, State, local, or foreign laws and regulations, to prescribe controlled substances and other
drugs.
M. Medical Review Officer ("MRO"), means a licensed physician responsible for receiving laboratory
results generated by Company's drug testing plan who has knowledge of substance abuse disorders
and has appropriate medical training to interpret and evaluate an individual's confirmed positive test
result together with his/her medical history and any other relevant information.
N. Safety-sensitive function Include but are not limited to;
(a) Directing and mustering passengers in emergencies
(b) Passing out lifejackets
(c) Controlling and operating lifesaving equipment
(d) Controlling and operating firefighting equipment
Safety Sensitive Position: Is any position (billet) aboard a vessel, that requires the person filling that
position to perform one or more safety sensitive duties or operation of a vessel on either a routine or
emergency only basis. Examples of this type of crewmember may include card dealers, bartenders,
game operators and service personnel aboard excursion or gaming vessels. Any person filling a
safety sensitive position is subject to U.S. Coast Guard drug and alcohol testing. All crewmembers,
that are responsible for the safe handling of passengers, are considered to be filling safety sensitive
positions as well.
O. Substance Abuse Professional ("SAP") means a licensed physician (Medical Doctor or Doctor of
Osteopathy), or a licensed or certified psychologist, social worker, employee assistance professional,
or addiction counselor (certified by the National Association of Alcoholism and Drug Abuse
Counselors Certification Commission (NAADAC) or by the International Certification Reciprocity
Consortium/Alcohol and Other Drug Abuse (ICRC)), with knowledge of and clinical experience in the
diagnosis and treatment of alcohol and controlled substances-related disorders.
ASAP evaluates employees who have violated a DOT drug and alcohol regulation and makes
recommendations concerning education, treatment, follow-up testing, and aftercare.
III. SCOPE
This policy implements the requirements of the Omnibus Transportation Employee Testing Act of 1991,
and all amendments thereto, and the rules and regulations promulgated by the DOT, Marine, as set forth
in Title 46 CFR Parts 4, and/or such other rules and regulations applicable to Company as may be
promulgated from time to time.
This policy applies to all covered employees, applicants for positions that would constitute a covered
employee position and all contractors.
IV. PROHIBITED CONDUCT
Company has determined that in order to comply with the relevant laws, rules and regulations, and to
foster the appropriate climate that promotes a drug and alcohol free workplace, certain conduct is
absolutely prohibited for all covered employees. The prohibitions contained herein may exceed the
requirements of the applicable laws and regulations. No covered employee shall:
1. Report for duty, remain on duty requiring or potentially requiring the performance of safety-sensitive
functions, or perform safety-sensitive functions, when the covered employee has used or uses any
controlled substance, except when such use is pursuant to the instructions of a Licensed Medical
Practitioner, who has advised the covered employee that the substance will not adversely affect the
covered employee's ability engage in any safety-sensitive functions.
2. Report for duty or remain on duty when the covered employee uses any controlled substance on the
instruction of a Licensed Medical Practitioner unless the covered employee has first notified
Company and provided Company with written proof of: (1) a prescription for the use of such
controlled substance; and (2) a determination by a Licensed Medical Practitioner that the substance
will not adversely affect the covered employee's ability engage in any safety-sensitive functions.
3. Report for duty or remain on duty with any controlled substance in the covered employee's
possession, custody or control.
4. Engage in the unlawful manufacture, use, sale, possession or distribution of controlled substances.
5. Employees are prohibited from reporting to work under the influence of alcohol or detectable levels of
controlled substances.
6. Use alcohol while performing safety-sensitive functions.
7. Leave the scene of a work related accident, without a valid reason, without contacting his or her
supervisor or a Company representative if the supervisor is not available.
8. Report for duty or remain on duty with any alcohol in the covered employee's possession, custody or
control, unless such alcohol has been disclosed to Company and the covered employee has
Company's written permission for such alcohol to be in the covered employee's possession, custody
or control.
9. Refuse to undergo a controlled substance and/or alcohol test as required under the terms of this
policy.
Any covered employee who is in violation of these prohibitions is required to immediately cease
conducting any safety-sensitive function, cease all Company business, leave all work areas
immediately and report to Company.
Any covered employee discovered to be in violation of these prohibitions while engaging in a safety-
sensitive function, shall immediately cease any safety-sensitive function and will be required to
undergo immediate controlled substance and/or alcohol testing.
V. REQUIRED TESTING
To ensure compliance with DOT rules, regulations and procedures, all covered employees, applicants for
employment, current employees, and contractors and subcontractors who are or may engage in safety-
sensitive functions as part of their employment duties shall be subject to controlled substance and
alcohol testing as described below. Such testing is a condition of employment and/or continued
employment by Company.
A. Pre-Employment Testing
All persons making an application for initial employment, re-employment, or temporary employment with
Company, which employment shall require or may include the performance of a safety-sensitive function,
shall be required, prior to and as a condition of employment, to undergo and successfully pass a pre-
employment drug test.
All applicants will be notified, at the time they complete a job application, that they will be required to
submit to a drug test if they are considered otherwise qualified for employment, and that they will be
required to submit to the terms and conditions of this policy if they are ultimately hired by Company.
All current employees transferring or being transferred from a position that does not involve a safety-
sensitive function into a position that does or may involve a safety-sensitive function must undergo and
pass a pre-employment drug test prior to such transfer and/or prior to performing a safety-sensitive
function.
Provided, however, that a pre-employment drug test is not required for an applicant or a current
employee under this section if:
1. The applicant or current employee has participated in a controlled substances testing program that
meets the requirements of this policy and all DOT regulations applicable to Company, within the
previous thirty (30) days; and
2. While participating in that program, the applicant or current employee either:
a. Was tested for controlled substances within the past six (6) months (from the date of application
with Company) and provides Company with proof of a negative test result acceptable to
Company, in Company's sole and absolute discretion; or
b. Participated in the random controlled substance testing program of another employer subject to
DOT testing regulations, for the previous twelve (12) months (from the date of application with
Company ); and
c. The applicant or current employee discloses the prior employer(s) for the twelve (12) month
period prior to the current application or proposed transfer, expressly authorizes Company to
contact the prior employer(s) to verify the applicant's or current employee's participation, and
Company verifies to Company's satisfaction, in Company's sole and absolute discretion, that no
prior employer disclosed to Company has records of a violation of the controlled substances use
rules of any DOT agency within the previous six (6) months.
All persons making an application for initial employment, re-employment, or temporary employment with
Company which employment shall require or may include the performance of a safety-sensitive
function, and all current employees transferring or being transferred from a position that does not involve
a safety-sensitive position into a position that does or may involve a safety-sensitive function, shall
provide his or her written release authorizing Company to contact their prior employer(s) and authorizing
said employer(s) to provide to Company a copy of their prior drug testing history as a requirement of
employment in any safety-sensitive function.
B. Post-Accident Testing
The U.S. Coast Guard requires drug and alcohol testing for those personnel directly involved in an
SMI, {Reference: 46 CFR 16.240, 46 CFR 4.060}. An SMI is any reportable marine casualty
{Reference: 46 CFR 4.03-2} that results, or, in the marine employer’s estimation, may result, in any
of the following:
i) One or more fatalities
ii) An injury to a crewmember, passenger, or other person which requires professional medical treatment
beyond first aid and, in the case of a person employed on board a vessel in commercial service, which
renders the individual unfit to perform routine vessel duties
iii) Property damage in excess of $100,000
iv) Actual or constructive total loss of any inspected vessel
v) Actual or constructive total loss of any self-propelled uninspected vessel of 100 gross tons or more.
vi) A discharge of oil into a navigable water excess of 10,000 gallons.
vii) A release of a Hazardous Substance greater than or equal to its reportable quantity into a navigable
water, whether from a casualty or not.
A marine employer may decide to require post accident testing for a less serious incident, however, the
employer’s definition of an accident, or specific accidents that mandate testing, should be spelled out in
the drug and alcohol testing program. Marine employers should consult their legal staff and insurance
carriers when developing this portion of the drug and alcohol test program.
If a marine employer elects to do testing in the event of an accident that does not rise to the level of a
Coast Guard mandated SMI or marine casualty, the marine employer is not eligible to use a Federal CCF
for the drug test, but can do a non-DOT drug test.
Federal law requires alcohol testing to be conducted within two (2) hours of a Serious Marine Incident,
once emergent concerns have been addressed. {Reference Section 304 Coast Guard Authorization Act
of 1998, 46 USC 2303(a)}. If there are safety concerns to be addressed, then up to 8 hours is allowed for
the alcohol test to be completed. No testing is required after 8 hours has elapsed from the time of the
SMI.
i) The regulation requires that all alcohol tests be conducted within two hours of the incident and that
drug tests be collected within 32 hours of the incident. Failure to comply with the two hour alcohol testing
requirement may lead to further action.
ii) To meet this mandate, it is recommended that marine employers identify, in writing, as part of their
program, under the heading of post accident testing, resources available to them, 24-hours a day, 7 days
a week, 365 days a year, in the areas their vessels operate. These resources should include how and
where tests for drugs and alcohol are to be performed. This may require the carriage of alcohol testing
devices or screening devices on board the vessel and personnel that are trained on how to correctly use
these same devices.
iii) This section of the written program needs to include the name of the qualified DOT drug test collector
to be called or used, the physical location of the collection site, and the telephone number. If there are
multiple areas of vessel operation, a listing for each operational area should be identified.
iv) The testing in a post accident environment is generally conducted at the site, conditions permitting. It
may also be necessary to conduct testing at a hospital. It is the marine employer’s responsibility to see
that the drug and alcohol tests are conducted in accordance with federal law and regulations.
v) Again, only a DOT 5-panel test of a mariner’s urine specimen is acceptable. A blood test for drugs is
unacceptable. All drug tests are required to meet the requirements stated in 49 CFR Part 40 for
collectors, laboratory and MRO services.
vi) For alcohol, the testing device that will be used is required to be listed on the current Conforming
Products List (CPL) periodically published by the National Highway Traffic Safety Administration
(NHTSA). Acceptable specimens are: breath, saliva, or blood. All blood alcohol tests are to be collected
by trained medical personnel. A urine test for alcohol is not acceptable.
vii) The Serious Marine Incident (SMI) (post accident) required drug tests, need not be done within two (2)
hours. Rather, the drug test must be conducted as soon as practicable but not more than 32 hours after
the accident. If the drug tests cannot be collected within 32 hours due to safety concerns, they should be
collected as soon as possible thereafter. {Reference 46 CFR 4.06-5 and 4.06-15}.
C. Random Testing
All covered employees, including contract, temporary and seasonal workers, who perform work for
Company in a safety-sensitive function shall be subject to random controlled substance testing at various
times, and with no advance notice. The random selection process will ensure each covered employee
has the same fair and equal chance of being selected for such random testing, and shall comply with the
relevant DOT rules and regulations.
Company shall select covered employees for random controlled substance testing on a monthly basis
(the "Selection Period"). A covered employee who is selected for random controlled substance testing
shall, upon notification that he or she has been selected, immediately proceed to the designated test site.
A covered employee who is on vacation, sick leave, is otherwise not at work or not available to be given
notice of his or her selection for random testing, shall be notified immediately upon their return to work
and shall then report for random test as required under this policy.
A minimum of fifty percent (50%) (or such other percentage as may be required under applicable DOT
rules, regulations and procedures as may be applicable to Company) of all eligible covered employees
per year shall be randomly tested for controlled substances.
If a covered employee is subject to random controlled substance testing under the random controlled
substances testing rules of more than one DOT agency, they shall be subject to random controlled
substances testing at the annual percentage rate established for the calendar year by the DOT agency
regulating more than 25 percent (25%) of the covered employee's function.
D. Reasonable Suspicion Testing
Any crewmember engaged or employed aboard a U.S. vessel, required to be operated by a person
holding a license or merchant mariner document, and is reasonably suspected of using a dangerous
drug, must be chemically tested for dangerous drugs. {Reference 46 CFR 16.250(a)}. Likewise a
crewmember suspected of being intoxicated or under the influence of alcohol, shall be subjected to a
breath or blood test for blood alcohol concentration. An individual is under the influence of alcohol or a
dangerous drug when:
a) The individual is operating a vessel other than a recreational vessel and has an alcohol concentration
of .04 percent by weight or more in their blood; or,
b) The individual is operating any vessel and the effect of the intoxicant(s) consumed by the individual on
the person’s manner, disposition, speech, muscular movement, general appearance or behavior is
apparent by observation. {Reference: 33 CFR 95.03)}.
No one can be forced to submit to a reasonable cause test. Any refusal should be thoroughly
documented and reported to the Coast Guard as appropriate. If any crewmember is suspected of being
under the influence of a dangerous drug or alcohol the marine employer will remove the crewmember
from all safety sensitive positions. The company consequences should be clearly defined in the company
drug and alcohol policy.
F. Follow-Up Testing
Under DOT rules, regulations and procedures, a covered employee who has received a positive test
result (i.e. indicating the presence of alcohol or controlled substances in violation), refused to test, or who
has voluntarily admitted a violation of this policy, shall, if returned to duty, be required to undergo
unannounced follow-up testing, in accordance with the applicable DOT rules, regulations and procedures
and the recommendations of a SAP, which may be scheduled for a period of up to sixty (60) months, and
must include no fewer than six (6) tests to be conducted in the first twelve (12) months after the covered
employee's return-to-duty date. Follow-up alcohol testing shall be conducted only just prior to, during, or
just after the covered employee's performance of safety-sensitive functions, or when he or she is in
readiness to perform safety-sensitive functions.
If Company has terminated a covered employee from employment, or the covered employee has
resigned, the Company shall have no responsibility for any remaining or outstanding follow-up tests
recommended by a SAP applicable to such covered employee.
Nothing herein is intended to or shall require Company to return a covered employee who has received a
positive test result, refused to test, or who has voluntarily admitted a violation of this policy to duty upon
his or her receipt of a negative test result, or to limit in any manner whatsoever, Company's right to
discipline the covered employee, including without limitation, termination of employment. All employees
who test positive will be directly observed under this testing category.
The cost of all return-to-duty testing and/or follow-up testing, if applicable, shall be borne by the covered
employee subject to such testing.
VI. TESTING ADMINISTRATION - CONTROLLED SUBSTANCES
A. Collection Sites
Company will utilize an approved Collection Site, which shall have the personnel, materials, equipment,
facilities, and supervision necessary to provide for the collection, security, temporary storage, and
shipping of urine specimens to an approved certified laboratory for testing, in a manner consistent with
the requirements of 49 CFR Part 40.
If one of Company's designated Collection Site facilities cannot be used to collect a specimen (e.g., a
post-accident test in a distant location), Company and/or the covered employee shall locate and utilize
another Collection Site facility, which is familiar with and qualified to collect a specimen under the
collection procedures set forth 49 CFR Part 40.
B. Collection Procedures
Any Person requested to undergo a drug test will be required to provide a urine specimen at a designated
Collection Site, in a manner consistent with the requirements of 49 CFR Part 40.
Except as required or permitted by DOT rules, regulations and procedures, set forth in 49 CFR Part 40,
collection procedures shall be conducted in such a manner as to afford the covered employee privacy
during the specimen collection.
If a specimen is being collected from a covered employee in need of medical attention (e.g., as part of
post-accident test given in an emergency facility), necessary medical attention will not be delayed in
order to collect the specimen.
Collection of a second specimen shall be obtained as soon as is possible, under the direct observation of
a member of the Collection Site personnel of the same gender as the donor, when required or permitted
under 49 CFR Part 40. If a donor is required to provide a second specimen but is unable to immediately
do so, the donor shall remain at the designated Collection Site (in no event longer than eight hours or
until the end of the shift, whichever is later), and be given fluid to drink.
C. Testing Facility
All urine specimens tested for the presence of controlled substances shall be analyzed by a laboratory
certified by the Department of Health and Human Services under the National Laboratory Certification
Program, or as or as otherwise provided for under 49 CFR Part 40.
D. Testing Procedures
All urine specimens will subject to (1) testing for the presence of controlled substances and (2) validity
testing, in accordance with the requirements of 49 CFR Part 40.
Initial testing for controlled substances may be by an immunoassay test using the cutoff levels proscribed
by 49 CFR Part 40, which will eliminate negative urine specimens from further consideration. Any
positive test results from an initial test will be subject to confirmation by gas chromatography/mass
spectrometry testing using the cutoff levels proscribed by 49 CFR Part 40. An initial positive result that is
not confirmed as positive under the cut-off levels proscribed by 49 CFR Part 40 will be deemed negative.
Specimens that yield positive results on confirmation testing shall be retained in storage in accordance
with the requirement of 49 CFR Part 40.
E. Review of Test Results
Test results will be reported by the testing laboratory to and will be reviewed by a MRO in accordance
with the requirements of 49 CFR Part 40. The MRO will review the results of controlled substance testing
before they are reported to Company. For test results that are reported as a laboratory confirmed positive,
adulterated, substituted, or invalid drug test, the MRO shall provide the covered employee with an
opportunity to provide a legitimate explanation for the test result in accordance with 49 CFR Part 40.
The MRO will contact the covered employee directly, on a confidential basis, to determine whether the
covered employee wishes to discuss the test result. Medical information disclosed to the MRO as part of
this verification process may be disclosed to third parties, including Company, as provided in 49 CFR Part
40.
If after making and documenting all reasonable efforts to contact the covered employee the MRO is
unable to reach the covered employee directly, the MRO will contact Company's DER, who will direct the
covered employee to contact the MRO as soon as possible. The MRO may verify a test as positive
without having communicated directly with a covered employee as provided for in 49 CFR Part 40.
If the MRO determines, after appropriate review, that there is a legitimate medical explanation for the
confirmed positive test result other than the unauthorized use of prohibited drugs, the MRO will conclude
and report the test to be negative. The MRO will not disclose to any third party, including Company
medical information provided by a covered employee as a part of the testing verification process, except
as provided in 49 CFR Part 40.
If the MRO determines, after appropriate review, that there is no legitimate medical explanation for the
confirmed positive test result other than the unauthorized use of prohibited drug, the MRO shall confirm
and report the test as positive.
If the MRO determines, based upon his/her review of the Laboratory's Inspection Reports, quality
assurance and quality control data, and other drug test results, that a particular drug test result is
scientifically insufficient for further action, the MRO will conclude and report that the test is negative.
If after receiving notice of a verified positive test, or an adulterated or substituted specimen, a covered
employee may request analysis of his or her split sample. This request shall be made within seventy-two
(72) hours of notification of a verified positive test or as otherwise permitted under 49 CFR Part 40. A
second, alternative qualified laboratory will conduct the spilt-specimen test. The covered employee shall
be responsible for all costs associated with the split specimen test.
F. Dilute Sample Testing
Dilute sample testing shall be as required under 49 CFR Part 40, provided however, Company requires
that for any urine sample that reports a creatinine concentration greater than 5 mg/dL but less than 20
mg/dL, and a specific gravity greater than 1.0010 but less than 1.0030 on a single aliquot, the covered
employee shall be required to promptly undergo a second test without notice under direct observation
collection procedures.
VII. TESTING ADMINISTRATION - ALCOHOL
A. Collection Site/Testing Facility
Company will utilize an approved Collection Site and Testing Facility, which shall have the personnel,
materials, equipment, facilities, and supervision necessary to provide for the collection, testing and
analysis of saliva and/or breath samples in a manner consistent with the requirements of 49 CFR Part 40.
If one of Company's designated Collection Site and Testing Facilities cannot be used to collect a
specimen (e.g., a post-accident test in a distant location), Company and/or the covered employee shall
locate and utilize another Collection Site and Testing Facility, which is familiar with and qualified to collect
a specimen under the collection procedures set forth 49 CFR Part 40.
B. Collection and Testing Procedures
Any covered employee requested to undergo an alcohol test will be required to provide a breath and/or
saliva sample at a designated Collection Site and Testing Facility, in a manner consistent with the
requirements of 49 CFR Part 40.
Alcohol testing shall be conducted by a Breath Analysis Technician (BAT) using an Evidentiary Breath
Testing (EBT) device as approved by the National Highway Traffic Safety Administration (NHTSA) and
listed on their Conforming Products List, or such other person or equipment as may be permitted under
DOT rules, regulations and procedures.
Two tests are required to determine if a person has a prohibited alcohol concentration. A screening test
is conducted first. Any result with alcohol concentration less than 0.02 is considered a "negative" test and
no further testing is required. If the first test results in an alcohol concentration of 0.02 or greater a
second confirmation test is required. The confirmation test must be conducted by a Breath Analysis
Technician using an Evidentiary Breath Testing device (EBT) in compliance with the requirements of 49
CFR Part 40.
A covered employee who fails to provide a sufficient amount of breath to conduct a test shall within five
(5) days of said test, obtain an evaluation from a licensed physician who is acceptable to Company and
who has expertise in the medical issues raised by the failure to provide sufficient specimen who shall
provide Company with a signed statement that the physician, in his or her reasonable medical judgment,
has determined:
1. A medical condition has, or with a high degree of probability could have, precluded the covered
employee from providing a sufficient amount of breath; or
2. There is not an adequate basis for determining that a medical condition has, or with a high degree of
probability could have, precluded the covered employee from providing a sufficient amount of breath.
If the licensed physician certifies a legitimate medical reason for the failure to provide a sufficient amount
of breath, the test shall be cancelled. If the physician cannot certify a legitimate medical reason for the
failure to provide a sufficient amount of breath, or the covered employee does not provide a signed
statement of a licensed physician acceptable to Company, this constitutes a refusal to test by the covered
employee.
C. Review of Test Results
A Breath Analysis Technician shall review the test results. Results that demonstrate a blood Alcohol
Content of less than 0.02 are a negative test. Test results of 0.02 or higher shall be immediately reported
to Company's DER.
A test result equal to or greater than 0.02 but less than 0.04 shall result in the covered employees
immediate removal from duty for at least twenty-four (24) hours.
A test result that is equal to or greater than 0.04 shall result in the covered employee being immediately
removed from duty and being subject to disciplinary sanctions up to an including termination.
Any covered employee who refuses to take a required controlled substance or alcohol test, refuses to
provide a specimen at the Collection Site, refuses to cooperate during the collection process, refuses to
complete any relevant documentation, such as the Urine Custody and Control forms or any other
paperwork, fails to properly cooperate with Collection Site Personnel, engages in any conduct which
creates reason to believe a urine specimen has been altered, adulterated or substituted, fails to report to
the Collection Site without a legitimate reason, and/or fails to provide an adequate specimen without a
medical basis will be immediately taken off his or her safety-sensitive position and will be subject to
disciplinary action up to and including termination of employment.
XI. EMPLOYEE EDUCATION, TRAINING, AND ASSISTANCE PROGRAM.
A. Employee Education
Company will provide an education program for its employees, which will include the following:
1. Distribution of informational material on substance abuse;
2. Display and distribution of a community service hot-line telephone number for employee assistance;
and
3. Display and distribution of Company's Drug and Alcohol Free Workplace Policy.
B. Supervisor Training
Any supervisory personnel of Company responsible for determining whether a covered employee must be
drug tested based on reasonable cause as provided for in this policy, will be required to complete at least
sixty (60) minutes of training on the specific contemporaneous physical, behavioral, and performance
indications of probable drug use as well as an additional sixty (60) minutes on the specific
contemporaneous physical, behavioral, and performance indications of alcohol use and chronic effects of
alcohol.
C. Employee Assistance Program
In addition to the Employee Education and Supervisor Training programs described above, Company
also will have available an Employee Assistance Program to which covered employees may refer for
additional consultation and referral.
XII. RECORDS/ CONFIDENTIALITY
Records pertaining to the alcohol and controlled substances testing program shall be maintained in
secured and locked confidential files in Company's Human Resources Department. Access to these
records shall be limited to management officials on a need-to-know basis, as determined by Human
Resources.
Records and report data shall be maintained as specified in DOT rules, regulations and procedures.
Except as required by law or expressly authorized or required by DOT rules and regulations, testing
information maintained under this policy will be released only to the driver (on written request), or to an
identified person as directed by the specific, written consent of the driver authorizing the release of the
information.
XIII. EDUCATION AND TRAINING
Any covered employee who has questions or concerns regarding this policy may seek clarification and
further details from Company's Director, Human Resources. Educational materials, including a copy of
this policy, and information concerning the effects of alcohol and controlled substances use on an
individual's health, work and personal life, signs and symptoms of an alcohol or controlled substances
problem, will be provided to each covered employee.
Additional materials may be requested and answers to questions about the materials may be obtained by
contacting Company's Director, Human Resources.
Attendance at training programs under this policy will be mandatory for supervisors and other employees
involved in administering the policy. Supervisors who are designated to determine whether or not
reasonable suspicion exists and who then order a covered employee to undergo testing under DOT rules
and regulations, will receive at least sixty (60) minutes of training on recognizing alcohol misuse, and at
least sixty (60) minutes of training on recognizing controlled substances use. The training shall cover the
physical, behavioral, speech, and performance indicators of probable alcohol misuse and use of
controlled substances.
All supervisors who participate in training will be given a certificate of completion of such training. The
original certificate will be kept in Company's records, and a copy will be provided to each supervisor for
his or her own records, when requested.
XIV. DRUG AND ALCOHOL PROGRAM ADMINISTRATOR
The Drug and Alcohol Program Administrator for Company will be available to provide information and
answer questions regarding the plan. The Drug Program Administrator is responsible for monitoring
compliance with the provisions of this policy.
Company's Drug and Alcohol Program Administrator is:
NEW ERA DRUG TESTING
Drug and Alcohol Testing Programs
801 S Glenoaks Blvd Suite 200
Burbank, CA 91502
ALCOHOL AND DRUG POLICY ACKNOWLEDGMENT
I, , acknowledge that I have read the company alcohol/drug policy,
and that I fully understand the violation of this policy will be grounds for immediate termination of my
employment.

INDEPENDENT CONTRACTOR AGREEMENT


1. The Parties. This Agreement is made between:

Client: California Yachts LLC, DBA San Diego Yacht Charter Company, & San Diego Yacht Crew Company & with a mailing address of 1620 South Charting, City of Springfield, State of Missouri, (“Client”)

AND

(“Contractor”).

WHEREAS the Client intends to pay the Contractor for Services provided, effective today, under the following terms and conditions:

2. The Services. The Contractor agrees to perform the following: Provide Boat/Vessel Services on Yachts in Southern California.

Hereinafter known as the “Services”. Client is under no obligation to provide any specific amount or time or work or dollar amount of Services to Contractor. Contractor will work on an as needed basis for Client.

Contractor is under no obligation to accept work, however when Contractor does accept work either orally or in writing Contractor shall provide services to Client at a specific date and time. If Contractor accepts work and then fails to show for work on time, a penalty equal to $500 shall be deducted from Contractors payment from past completed work or future work, or Contractor shall pay penalty via check directly to Client within 10 days, at the sole discretion of Client.

3. Credentials Required at Work. Contractor agrees to have in his/her possession at all times while performing work a valid United States Coast Guard credentials, if required by law for that duty. In the event that Client is fined for Contractor not having valid credentials, then Contractor shall pay such fines to Client for reimbursement within 10 days.

4. Required Safety Equipment. It is the responsibility of the Contractor to ensure all United States Coast Guard required safety equipment is on board vessel and functional prior to each trip. Contractor shall immediately notify Client if any equipment is not present or is not functional or valid. In the event that Client is fined for Contractor not having valid safety equipment on board vessel, then Contractor shall pay such fines to Client for reimbursement within 10 days.

5. Passenger Maximum Aboard Vessel. It is the responsibility of the Contractor to ensure the maximum legal limit of the number of passengers aboard vessels is not exceeded. In the event that Client is fined for Contractor exceeding vessel passenger limits, then Contractor shall pay such fines to Client for reimbursement within 10 days.

6. Emergencies. Contractor shall notify Client via telephone as soon as practicable of any medical emergencies, injuries to any person, any person that becomes legally intoxicated, or any person that is unable to take crew member instruction or don a life jacket, or if any part of the vessel becomes inoperable. If asked by Client at any time, Contractor shall provide a written description of events that took place during any emergency within 5 days of request.


7. Payment. In consideration for the Services to be performed by the Contractor, the Client agrees to pay the following:

Payment will be through an employment Agency known as: San Diego Yacht Crew Company. San Diego Yacht Crew Company is responsible for paying Contractor directly. Contractor holds harmless and indemnifies Client from any payments not received by San Diego Yacht Crew Company Agency.

Completion shall be as completing a trip on the designated yacht at the designated date and time of trip and returning boat to its original pickup location at the scheduled arrival time.


8. Termination. This Agreement shall terminate upon Client Terminating the agreement via text, phone call or writing to the other party. If contractor wishes to terminate agreement, Contractor shall provide 14 days notice via phone call, text or writing to Client.


9. Independent Contractor Status. The Contractor, under the code of the Internal Revenue Service (IRS), is an independent contractor, and neither the Contractor's employees or contract personnel are, or shall be deemed, the Client's employees. Contractor specifically desires and intends to operate as an independent contractor; and as an independent contractor, Contractor is not entitled to workers’ compensation benefits provided by Client, or unemployment benefits following termination of the parties’ relationship, and Contractor is required to pay all federal, state, and local income taxes on any monies earned pursuant to this Agreement.


10. Federal and State Taxes. Under this Agreement, the Client shall not be responsible for:
Withholding FICA, Medicare, Social Security, or any other federal or state withholding taxes from the Contractor’s payments to employees or personnel or make payments on behalf of the Contractor; Make federal or state unemployment compensation contributions on the Contractor’s behalf; and the payment of all taxes incurred related to or while performing the Services under this Agreement, including all applicable income taxes and, if the Contractor is not a corporation, all applicable self-employment taxes. Upon demand, the Contractor shall provide the Client with proof that such payments have been made.

11. Indemnification. The Contractor shall indemnify and hold the Client harmless from any loss or liability from performing the Services under this Agreement.

12. Confidentiality. The Contractor acknowledges that it will be necessary for the Client to disclose certain confidential and proprietary information to the Contractor in order for the Contractor to perform their duties under this Agreement. The Contractor acknowledges that disclosure to a third party or misuse of this proprietary or confidential information would irreparably harm the Client. Accordingly, the Contractor will not disclose or use, either during or after the term of this Agreement, any proprietary or confidential information of the Client without the Client's prior written permission except to the extent necessary to perform Services on the Client's behalf.

Proprietary or confidential information includes, but is not limited to: The written, printed, graphic, or electronically recorded materials furnished by Client for Contractor to use; Any written or tangible information stamped “confidential,” “proprietary,” or with a similar legend, or any information that Client makes reasonable efforts to maintain the secrecy of business or marketing plans or strategies, customer lists, operating procedures, trade secrets, design formulas, know-how and processes, computer programs and inventories, discoveries, and improvements of any kind, sales projections, and pricing information; and information belonging to customers and suppliers of the Client about whom the Contractor gained knowledge as a result of the Contractor's Services to the Client. Upon termination of the Contractor's Services to the Client, or at the Client's request, the Contractor shall deliver to the Client all materials in the Contractor's possession relating to the Client's business. The Contractor acknowledges any breach or threatened breach of confidentiality that this Agreement will result in irreparable harm to the Client for which damages would be an inadequate remedy. Therefore, the Client shall be entitled to equitable relief, including an injunction, in the event of such breach or threatened breach of confidentiality. Such equitable relief shall be in addition to the Client's rights and remedies otherwise available at law.


13. Proprietary Information. Proprietary information, under this Agreement, shall include:

The product of all work performed under this Agreement (“Work Product”), including without limitation all notes, reports, documentation, drawings, computer programs, inventions, creations, works, devices, models, work-in-progress and deliverables will be the sole property of the Client, and Contractor hereby assigns to the Client all right, title and interest therein, including but not limited to all audiovisual, literary, moral rights and other copyrights, patent rights, trade secret rights and other proprietary rights therein. Contractor retains no right to use the Work Product and agrees not to challenge the validity of the Client’s ownership in the Work Product;

Contractor hereby assigns to the Client all right, title, and interest in any and all photographic images and videos or audio recordings made by the Client during Contractor’s work for them, including, but not limited to, any royalties, proceeds, or other benefits derived from such photographs or recordings; and The Client will be entitled to use Contractor's name and/or likeness in advertising and other materials.

14. No Partnership. This Agreement does not create a partnership relationship between the Client and the Contractor. Unless otherwise directed, the Contractor shall have no authority to enter into contracts on the Client's behalf or represent the Client in any manner.

15. Governing Law. This Agreement shall be governed under the laws in the State of California, San Diego County. Personal jurisdiction and subject matter jurisdiction shall be in San Diego California.


16. Severability. This Agreement shall remain in effect in the event a section or provision is unenforceable or invalid. All remaining sections and provisions shall be deemed legally binding unless a court rules that any such provision or section is invalid or unenforceable, thus, limiting the effect of another provision or section. In such case, the affected provision or section shall be enforced as so limited.

17. Breach Waiver. Any waiver by the Client of a breach of any section of this Agreement by the Contractor shall not operate or be construed as a waiver of any subsequent breach by the Contractor.


18. Endurement. This agreement shall endure to the benefit of and be binding upon the parties hereto and their respective heirs, executors, legal personal representatives, successors and permitted assigns.

19. Entire Agreement. This Agreement, along with any attachments or addendums, represents the entire agreement between the parties. Therefore, this Agreement supersedes any prior agreements, promises, conditions, or understandings between the Employer and Employee or Contractor.