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i TABLE OF CONTENTS I.The FESCO Story .................................................................. iii II.Handbook Statement ............................................................ iv III.Employment Practices a. Equal Employment Opportunity ....................................1 b. Arbitration Agreement ..................................................1 c. ADA ...............................................................................5 d. Termination of Employment ..........................................5 e. Discrimination and Harassment .....................................7 f. Corporate Social Responsibility Statement ...................9 g. Conflict Resolution ......................................................10 h. Searches, Contraband and Investigations ....................11 i. Personnel Files .............................................................12 j. Transfers ......................................................................13 k. Employment of Relatives .............................................13 l. Employment Medical Examinations ............................14 IV.Compensation a. Employee Classifications .............................................15 b. Pay Procedures .............................................................17 c. Work Hours ..................................................................19 d. Pay Calculations...........................................................22 e. Expenses ......................................................................26 f. Personal Vehicle Mileage Allowance ..........................27 g. Reimbursement for Personal Property Damaged or Destroyed on Job .....................................28 V.Time Off From Work a. Vacations......................................................................29 b. Holidays .......................................................................31 c. Sick Leave ....................................................................33 d. Funeral Leave...............................................................37 e. Jury Duty Leave ...........................................................38 f. Personal Leave .............................................................38 g. Family and Medical Leave Act ....................................39 h. Inclement Weather .......................................................43 i. Military Reserves or National Guard Leave ................44 j. Military Leave ..............................................................44

ii VI. Employee Benefits a. Employee Benefits Program ........................................45 b. Benefit Summary .........................................................47 c. Workers’ Compensation .............................................49 d. Service Awards ............................................................51 VII. Employee Development a. Orientation Program.....................................................52 b. Evaluations ...................................................................54 c. Promotions ...................................................................56 d. Various Reading and Training Material ......................57 VIII. Employee Conduct a. Guidelines of Conduct .................................................59 b. Guidelines for Appropriate and Ethical Conduct.........62 c. Disciplinary Action ......................................................64 d. Dress, Grooming and Appearance ...............................66 e. Conflict of Interest .......................................................67 f. Moonlighting................................................................68 g. Employee Use of FESCO Equipment ..........................69 h. Internet Use Policy .......................................................71 i. Social Media Policy .....................................................73 j. Loss of Tools or Equipment .........................................77 k. Tobacco Use.................................................................78 IX. Safety and Health a. Company’s Commitment ............................................79 b. Safety Incentive Program .............................................81 c. Vehicle Operations.......................................................86 d. Drug Policy ..................................................................95 e. Alcohol Policy .............................................................96 f. Workplace Violence.....................................................98 g. Bump Gate Operation ..................................................99

iii THE FESCO STORY Findley Engineering Service Company was founded in Alice, Texas by W.E. Findley, Jr. in December 1949. Mr. Findley worked with Mr. G. O. Kimmell (Kimray, Inc.) to design and build his first piece of equipment, a split stream lab truck. The first employee was hired in 1952 and the first district office was opened in October, 1957. In August 1962, the company incorporated and was named FESCO, Inc. The company has grown to multiple locations with hydrocarbon labs, a PVT lab, one sales office, and an industrial supply division. Locations Date Opened Alice December 1949 Edinburg October 1957 Victoria July 1958 Refugio October 1963 Corpus Christi Testing April 1970 El Campo May 1971 Laredo June 1975 Ozona September 1976 Kilgore April 1977 Bryan August 1978 Houston (sales) October 1985 Beaumont July 1986 Lafayette August 2002 Woodward September 2005 Odessa October 2005 Alice Hydraulic Choke July 2007 Canadian September 2007 Liberal September 2008 Appalachia Region January 2010 Corpus Wireline September 2010 Mansfield, LA September 2010 Pecos January 2012 Lufkin February 2012 Pump Services March 2012

iv FESCO, Ltd. Handbook Statement This handbook is not a contract, expressed, implied or guaranteeing, employment for any specific duration, except that the Arbitration Policy and Agreement is a contractual agreement between you and the Company. FESCO may terminate an employee at any time, for any reason, with or without cause or advance notice. No supervisor, manager, or representative of FESCO other than the President has the authority to enter into any agreement with you for employment for any specified period or to make any promises or commitments contrary to the foregoing. Further, any employment agreement entered into by the President shall not be enforceable unless it is in writing, and signed by both employee and President. Throughout this handbook, pronouns such as he, his, she, hers, or her shall be construed so as to include both sexes. All references to FESCO, FESCO, Ltd. and any and all subsidiaries of FESCO, Ltd. (unless specifically noted) are synonymous for the purpose of this handbook. This Employee Handbook is an important document intended to help you become acquainted with FESCO. This handbook will serve as a guide; it is not the final word in all cases. Individual circumstances may call for individual attention. FESCO, Ltd. reserves the right to interpret its stated policies, practices and procedures on a case-by-case basis as the company deems necessary or appropriate. The subject material covered in the policies and statements in this handbook supersede any previously dated policies or statements of the same subject material. As the general business atmosphere of FESCO and economic conditions are always changing, the contents of the handbook may

v be changed at any time at the discretion of FESCO with or without notice, except that you will receive notice of any amendments or modifications to the Arbitration Policy Agreement before those amendments or modifications become effective. Changes in any benefit, policy or rule will be made with due consideration of the mutual advantages, disadvantages, benefits and responsibilities such changes will have on you as an employee and on FESCO. FESCO complies with all Federal and State law. This handbook is the property of FESCO, Ltd. and must be returned to the company upon your separation from employment.

1 EMPLOYMENT PRACTICES EQUAL EMPLOYMENT OPPORTUNITY FESCO provides equal employment opportunities for everyone regardless of age, sex, color, race, creed, national origin, religion, citizenship, disability, veteran status, or any status protected by law that does not prohibit performance of essential job functions. This is reflected in all FESCO practices and policies, including hiring, training, promotions, transfers, rates of pay, layoff, discipline and all forms of compensation. All matters relating to employment are based upon appropriate job-related criteria, including ability to perform the job, as well as dependability, attitude and reliability once hired. Reasonable accommodations will be made to qualified individuals with known disabilities to allow the employee to perform essential functions of the job unless doing so would result in undue hardship. Questions or concerns about any discrimination in the workplace should be brought to the Human Resource Manager’s attention. Employees can raise questions or concerns without fear of reprisal. Anyone engaging in any type of discrimination in violation of this policy will be subject to disciplinary action, up to and including termination. MUTUAL BINDING ARBITRATION AGREEMENT Introduction Binding arbitration of disputes, rather than litigation in courts, provides an effective means for resolving issues arising in or from employment situation. Arbitration is generally faster, cheaper and less formal for all parties. FESCO, Ltd. and its affiliate companies (collectively, “the Company”) is committed to using binding

2 arbitration to resolve all legal disputes, whether initiated by the Company or by an employee, in a forum which provides this alternative to the court system. By accepting or continuing employment after the receipt of this Agreement, you agree to use the exclusive use of the arbitration forum. The Company’s agreement to use binding arbitration is confirmed by this statement; your agreement is confirmed by your signature below or by your acceptance or continuation of employment upon notice of this policy. Agreement I agree and acknowledge that the Company and I will utilize binding arbitration to resolve all disputes that may arise related to my employment or out of the employment context. Both the Company and I agree that any claim, dispute, and/or controversy that either I may have against the Company (or its owners, directors, officers, managers, employees, agents, and parties affiliated with its employee benefit and health plans) or the Company may have against me, arising from, related to, or having any relationship or connection whatsoever with my employment by, or other association with the Company, shall be submitted to and determined exclusively by binding arbitration under the Federal Arbitration Act and/or the applicable state Arbitration Act. All claims must be brought in the parties’ individual capacity, and not as a private attorney general, plaintiff or class member in any purported class, collective or representative proceeding and any such right to bring such class, collective or representative claims is expressly waived. Arbitration of covered claims will be required even in circumstances where a third-party non-signatory to this Agreement (such customers or vendors) is named as a defendant along with or instead of Employer The parties further agree that any arbitration award is subject to judicial review initiated by either party and that such judicial review shall be to determine whether the arbitrator applied correct principles of law as permitted under the applicable state Arbitration Act. Included Claims Included within the scope of this agreement are all disputes, whether they be based on, Title VII of the Civil Rights Act of 1964, as

3 amended, the Civil Rights Act of 1870, the Americans with Disabilities Act of 1990 as amended, the Americans with Disabilities Act Amendments Act of 2008, the Rehabilitation Act, the Occupational Safety and Health Act, the Age Discrimination in Employment Act as amended, the Older Workers Benefit Protection Act, the Fair Labor Standards Act of 1938 as amended, the Equal Pay Act of 1963, the Uniformed Services Employment and Reemployment Rights Act, the Worker Adjustment and Retraining Notification Act, the Lilly Ledbetter Fair Pay Act of 2009, the Family and Medical Leave Act, the Employee Retirement Income Security Act of 1974, the Fair Credit Reporting Act, the Civil Rights Act of 1991, the Genetic Information Nondiscrimination Act of 2008, or any applicable state or federal law or regulation, equitable law, or otherwise, with exception of claims arising under (i) the National Labor Relations Act which are brought before the National Labor Relations Board, (ii) claims for benefits under the applicable state Workers’ Compensation Act, or (iii) as otherwise required by state or federal law. Nothing shall prevent an employee from filing and pursuing proceedings before the United States Equal Employment Opportunity Commission and/or applicable state fair employment agency (although if such a claim is pursued following the exhaustion of such administrative remedies, that claim would be subject to these provisions). Procedures A request for arbitration will be submitted within one year of the date the dispute first arose, or within one year of the termination of employment, whichever occurs first, or it is waived; provided, however, that if a claim arises under a statute providing for a longer time to file a claim, that statute shall govern. The parties agree that any such arbitration shall be conducted under the rules of the American Arbitration Association ("AAA") applicable to employment disputes (or in another manner to be determined as mutually agreed to by the parties and the arbitrator). The Company will pay the cost of the arbitrator, but I and the Company shall be responsible each for our own attorney costs and other costs incident to arbitration (including the cost of a court

4 reporter), subject to an arbitrator's award to the prevailing party in accordance with applicable statutes. I also acknowledge that if I initiate arbitration, I shall be responsible for any filing fees. Each party is entitled to 3 depositions, 10 interrogatories and 20 requests for production and the arbitration hearing will be initiated within one year of filing. Consistent with the efficiencies of arbitration, the arbitrator may also allow for the hearing of any motions, including motions for summary judgment or dismissal. Resolution of the dispute shall be based solely upon the law governing the claims and defenses pleaded, and the arbitrator may not invoke any basis (including but not limited to, notions of “just cause”) other than such controlling law. The arbitrator shall not have the authority to combine individually filed arbitrations into a class action or collective action. Awards shall include the arbitrator’s written reasoned opinion. Severability Should any term or provision, or portion thereof, be declared void or unenforceable or deemed in contravention of law, it shall be severed and/or modified by the arbitrator or court and the remainder of this agreement shall be enforceable. Jury Waiver I understand that by agreeing to this arbitration agreement, both I and the Company give up our rights to trial by jury. I hereby acknowledge that I have read the above agreement, understand it and agree to its terms. BY SIGNING THIS AGREEMENT, THE PARTIES AGREE THAT EACH MAY BRING CLAIMS AGAINST THE OTHER ONLY IN THEIR INDIVIDUAL CAPACITIES, AND NOT AS A PLAINTIFF OR CLASS MEMBER IN ANY PURPORTED CLASS, REPRESENTATIVE OR COLLECTIVE PROCEEDING. DO NOT SIGN UNTIL YOU HAVE READ AND UNDERSTOOD THE ABOVE STATEMENT AND AGREEMENT.

5 AMERICANS WITH DISABILITIES ACT POLICY STATMENT FESCO is committed to complying with all applicable provisions of the Americans with Disabilities Act (ADA). It is the Company’s policy not to discriminate against any qualified employee or applicant with regard to any terms or conditions of employment because of such individual’s disability or perceived disability so long as the employee can perform the essential functions of the job. Consistent with this policy of nondiscrimination, the Company will provide reasonable accommodations to a qualified individual with a disability, as defined by the ADA, who has made the Company aware of his or her disability, provided that such accommodation does not constitute an undue hardship on the Company. Although FESCO will endeavor to provide an accommodation that is satisfactory to the employee, the accommodation provided by FESCO may not necessarily be the accommodation requested or preferred by the employee. Employees with a disability who believe they need a reasonable accommodation to perform the essential functions of their job should contact the Human Resource Manager. TERMINATION OF EMPLOYMENT A two week advance notice should be given to your supervisor in writing (letter of resignation) in the event an employee desires to voluntarily terminate employment however, FESCO does retain the right to accept a resignation on the date tendered. Employees who are terminated must return all property issued by FESCO. A “Termination Report” showing all FESCO property has been returned should be forwarded to Alice by the employee’s supervisor as soon as possible after termination to facilitate payment

6 of final check. Terminated employees will be compensated for all non-forfeited, unused vacation. No vacation will accrue nor be paid for a partial year of service. The employee will not be paid for any unused sick leave. Unused Safety Awards become void 2 weeks from termination date. Terminated employees will not be eligible for cash bonuses, should management decide to issue one, even though the employee was employed during the fiscal year applicable to the bonus. Employees who voluntarily leave FESCO’s employment will be issued their final paycheck on the next scheduled payday after termination. Employees released from employment by FESCO will be issued their final paycheck within the time period per the State law in which they reside. Some benefits terminate at 12:00 midnight on the day designated as the employee’s termination date. Summary plan description booklets should be referred to for more details on benefit termination and the possibility of continuing benefits after termination or by checking with the Benefit’s Department in Alice. FESCO is an “Employment at Will” company. FESCO or the employee can terminate the employee’s employment at any time, with or without notice and with or without cause. Termination can occur for reasons other than policy and procedure violations including, but not limited to, incompetence and work slow-downs.

7 DISCRIMINATION AND HARASSMENT Prohibited Conduct To assure that FESCO maintains a work place free of discrimination, harassment and intimidation, the following actions and behaviors will not be tolerated: 1. The telling of racial oriented jokes; 2. The use of “racial slang names” when talking to a person or when speaking about a person. 3. Verbal harassment or abuse; 4. Unwelcome sexual favors; 5. Request for sexual favors; 6. Subtle pressure for sexual activity; 7. Patting or pinching; 8. Constant brushing against another employee’s body; 9. Demanding sexual favors accompanied by implied or overt threats concerning an individual’s employment status; 10. The telling of lewd jokes and stories; 11. The use of vulgar or obscene language; 12. Leering, innuendos and the use of degrading terms; 13. Any conduct that has the purpose or effect of unreasonable interfering with an individual’s work performance or creating an intimidating, hostile or offensive working environment. This list is not intended to be inclusive of all forms of discrimination, harassment or intimidation, and any actions or behaviors that are in violation of FESCO’s policy should be reported. Enforcement of Policy 1. Non-Employee Violators: This policy will apply to FESCO employees and non-employees. Non-employee violators of this policy will be subject to expulsion from FESCO premises with instructions not to return. 2. Employee Violators: Any employee who violates this policy will be subject to

8 disciplinary action up to and including discharge. FESCO will not tolerate the harassment or discrimination of any employee or non-employee by any other employee or non-employee, supervisor or manager for any reason. Reporting Complaint Any employee who becomes aware or believes that an employee has been subjected to treatment or behavior which violates this policy should report the behavior to the Human Resource Manager, such report may initially be verbal or in writing. If the report is made verbally, the person reporting the treatment or behavior which violates this policy will be requested to sign a written statement describing the action or behavior in sufficient detail to allow a thorough investigation. Place to Report Prohibited Conduct The report of treatment or behavior that violates this policy should be either mailed or reported to the Human Resource Manager in the corporate office of FESCO located in Alice, Texas. Procedure for Complaint Review 1. Initial Review: Upon receipt in Alice, the complaint will be reviewed by the Human Resource Manager. After investigating the allegations, which may include an interview with the person filing the complaint and others involved, the person will receive a written response within thirty days from the receipt of the complaint detailing the findings of the Human Resource Manager and what will be done to resolve the complaint. 2. Appeal: If the employee feels as though the resolution is unsatisfactory and wishes to appeal it, he or she should file an appeal in writing within ten days after the proposed resolution was received with reasons for the appeal to the President of FESCO, Ltd. The appeal will then be reviewed by a committee made up of the President and selected management representatives.

9 Retaliation Prohibited Any attempts by any employee to retaliate against or influence the testimony of the complainant or any witnesses will subject the employee to disciplinary action up to and including termination. Employees who violate this policy will be subject to FESCO’s discipline policy including termination. Conclusion This subject is a very serious matter and should be taken as such by all managers, supervisors, and employees. CORPORATE SOCIAL RESPONSIBILITY STATEMENT FESCO recognizes that, as a responsible corporate citizen, we have certain social and ethical obligations to the communities in which we operate. FESCO voluntarily assumes such obligations and commits to protecting human rights, ensuring fair labor practices, and prohibiting of modern day slavery, as well as engaging in ethical operating practices and preventing corruption. Policies throughout this Handbook address the many ways in which FESCO requires Employees to abide by, and ensure compliance with, these commitments. The following statements describe FESCO’s general standards and practices with respect to corporate social responsibility. 1. Human Rights. FESCO is committed to conducting business operations in a manner that respects universally accepted human rights and freedoms, as well as state and national laws. These rights include the right to a safe work environment, freedom from discrimination and harassment, a living wage, and freedom from child or slave labor. All Employees must ensure commitment to the ethical treatment of their fellow employees as well as members of the communities in which we serve.

10 2. Fair Labor Practices / Modern Slavery. FESCO categorically prohibits all forms of slavery, human trafficking, servitude, or forced labor. FESCO’s personnel management processes are designed to ensure all Employees are legally entitled to work, enjoy a fair and equitable work environment, and are safeguarded from any abuse or coercion. We expect the same commitment from our contractors, suppliers, and other business partners. 3. Ethical Operating Practices / Anti-Corruption. FESCO is committed to fair and lawful competition. FESCO does not condone corruption or the misuse of funds to gain an unfair business advantage. FESCO monitors financial and internal controls to ensure gifts, travel and entertainment expenses, charitable and other donations, as well as anything of value are used appropriately. Employees are prohibited from offering or making bribes, kickbacks, illegal gratuities, or similar payments. All employees must ensure business expenses comply with FESCO’s policies on ethical operations. FESCO will regularly monitor company systems and operations for compliance with these commitments. If any Employee observes an actual or potential violation of these commitments, Employees should promptly report such concerns to FESCO’s human resources department so that it may be properly addressed. CONFLICT RESOLUTION FESCO strives to maintain an “open door” policy. Any inequities of work load, advancement opportunity, personality conflicts or other problems should be brought to the attention of your supervisor. Every effort should be made to rectify the situation at the local level, however, if the situation warrants, the employee may request an appointment to discuss the problem with management in Alice.

11 SEARCHES, CONTRABAND AND INVESTIGATIONS FESCO has reserved the right to carry out searches of individual employees and their personal effects when employees are on or in a FESCO vehicle, building, yard or work location. Personal effects of employees include, but are not limited to, personal vehicles, baggage and lockers. Searches by FESCO may be initiated without prior notice and conducted at times and locations deemed appropriate by FESCO. Employees will be requested to cooperate by submitting to scheduled and unscheduled urinalysis, blood and alcohol detection (breath or saliva test). Employees have the right to refuse being searched or having their personal effects searched or to cooperate in the requested tests; however, refusal of such searches or tests by an employee will be cause for disciplinary action up to and including termination. FESCO, at its’ sole discretion, may take into custody any unauthorized or prohibited items found in or on FESCO property or work locations and may turn them over to law enforcement agencies.

12 PERSONNEL FILES FESCO maintains personnel files on each employee. These files are the property of FESCO. These files contain documentation regarding all aspects of the employee’s tenure with FESCO, such as employee evaluations, beneficiary designation forms, disciplinary warning notices, and letters of commendation. To ensure that your personnel file is up-to-date at all times, notify your supervisor or the Human Resource Department of any changes in your name, telephone number, home address, marital status, number of dependents, beneficiary designations, scholastic achievements, individuals to notify in case of an emergency, and so forth. Additional files pertaining to training are kept by the Safety and Training Department, in Alice. These files contain the number of training tests completed and the corresponding grades. The information in these files is available to the employee to use as a gauge of their knowledge and advancement.

13 TRANSFERS Elective transfers are considered on an individual basis. Employees who desire to transfer need to make their wishes known to their District Manager who will forward the request to the Human Resource Manager. Generally, management will view the request from the standpoint of what is best for the company and the employee. Management is always concerned about the desires of the employee but the operational needs of the company will be considered. Possible reimbursement for moving expenses associated with an elective transfer will be negotiated prior to the transfer. If an employee is asked by FESCO to transfer from one district to another, the employee will be reimbursed for approved expenses incurred as a result of the move. A transfer or relocation is not a guarantee of continued employment and does not alter employment at will status. EMPLOYMENT OF RELATIVES FESCO permits the employment of qualified relatives of employees as long as such employment does not, in the opinion of FESCO, create actual or perceived conflicts of interest or otherwise adversely affect the working relationship within the company. This policy applies to all FESCO employees.

14 EMPLOYMENT MEDICAL EXAMINATIONS As a condition of continued employment, employees may be required to undergo periodic medical examinations, and/or alcohol and drug screenings, at times specified by FESCO, customers and federal regulations. In connection with these examinations, employees are required to provide FESCO with access to their medical records, limited to the reason for which the employee initially visited the doctor unless other conditions were discovered that impacts the ability to perform essential functions of the job. Questions concerning medical examinations or alcohol and drug screening should be directed to your supervisor or the Human Resource Department.

15 COMPENSATION EMPLOYEE CLASSIFICATIONS For purposes of salary administration and eligibility for overtime compensation and employee benefits, FESCO classifies its employees as follows: Full time: Employees who are regularly scheduled to work FESCO’s regular, full-time, forty hour work week. Such employees may be “exempt” or “non-exempt” as defined below, and are eligible for employee benefits. Reduced Hour: Employees who are regularly scheduled to work at least thirty and under forty hours per workweek. Such employees may be “exempt” or “non-exempt” as defined below, and are eligible for employee benefits. Part-time: Employees who work for FESCO understanding that their employment and work schedule is on an as needed basis, regardless of the number of hours worked in a workweek. Such employees are not eligible for employee benefits unless otherwise mandated by law and these policies. Temporary: Employees who work for FESCO understanding that their employment will be terminated no later than on completion of a specific assignment. (Note that a temporary employee may be offered and may accept a new temporary assignment from FESCO and still retain temporary status.) Such employees are not eligible for employee benefits. (Note that employees hired from employment agencies for specific assignments are employees of the respective agency and not of FESCO.)

16 Non-exempt Employee: Employees who are required to be paid overtime at the rate of one and one half times their regular rate of pay for all hours worked over forty hours in a work week in accordance with applicable federal wage and hour laws. Exempt Employee: Employees paid on a salary basis and who are not required to be paid overtime, in accordance with applicable federal wage and hour laws, for work performed over forty hours in a work week. Executives, professionals, outside sales representatives, and certain employees in administrative positions are typically exempt. Exempt status will be qualified by job duties and not job titles. You will be informed of your initial employment classification and exempt or non-exempt status upon hire. If you change positions during your employment as a result of a promotion, transfer or otherwise, you will be informed of any change in your classification by the Human Resource Department. Please direct any questions regarding your employment classification or exempt/non-exempt status to the Human Resource Manager.

17 PAY PROCEDURES Regular Pay Cycles: All employees are paid by check on a bi-weekly basis (26 pay periods per year). Payday is normally on every other Friday for services performed for the two (2) week period ending the previous Saturday at 12:00 midnight. Exempt employees will receive their normal salary divided into equal amounts for 26 pay periods in a calendar year. Changes in a payday will be announced in advance if a FESCO observed holiday or unforeseen event interferes with the scheduled payday. FESCO’s workweek is Sunday through Saturday. Paychecks or paycheck advices, if paycheck is direct deposit, are distributed at each office on the designated payday. Paychecks are to be distributed to the employee unless written authorization is obtained from the employee giving someone else permission to receive the paycheck. Pay Procedures: All mandatory deductions and all voluntary deductions authorized in writing will be withheld automatically from your paycheck. Whenever court-ordered or I.R.S. mandated deductions are to be taken from your paycheck, you will be notified. Please review your paycheck for errors. If you find a mistake, report it to your supervisor immediately. Your supervisor will take the steps necessary to correct the error. If your paycheck is lost or stolen, please notify the Payroll Manager in the Alice office immediately. The Payroll Department will attempt to put a stop payment on your paycheck. If the stop payment is issued the bank fee for this service will be charged back to the employee, and a replacement paycheck will be issued. If a stop payment cannot be made, you alone will be responsible for such loss. If the lost or stolen paycheck is due to the negligence of FESCO, we will issue a replacement paycheck and not charge the employee the stop payment bank fee.

18 Time Records: By law, FESCO is obligated to keep accurate records of the time worked by “non-exempt” employees. This is done by either electronic time clock or written documentation. The electronic time clock is the only way the payroll department knows how many hours you worked and how much to pay you. Any employee who leaves the office at any time for personal business, to include break times and lunch breaks, will punch out and not be allowed to punch back in for 30 minutes. Employees taking the normal 15 minute break and not leaving the office are not required to punch out. Any employee who takes a designated lunch break (not responsible for any assignment job duties) whether at the office or outside the office will punch out and not be allowed to punch back in for 30 minutes. All employees are required to keep the office advised of their departures from and returns to the premises during the work day. You are responsible for your time record. Remember to inform your supervisor the reason for being absent from work. In the event of an error in recording time, report the matter to your supervisor immediately. IN ORDER TO COMPLY WITH DOT REGULATIONS, THE DAILY BEGINNING TIME AND THE DAILY ENDING TIME FOR DOT REGULATED EMPLOYEES MUST BE THE SAME AS WHAT IS SHOWN IN THE EMPLOYEE’S LOG BOOK. The electronic time clock is the official FESCO time keeping device for payroll purposes and not the old paper time card clocks. Using the electronic clock is mandatory, not optional. Personal Status: It is your responsibility to notify the Human Resource Department of any changes in your personal status (e.g., marriage, divorce, gain/loss of dependents, address changes, etc.). Any change in your personal status could affect your paycheck, benefits or other related matters.

19 WORK HOURS Hours of work will be regulated by an employee’s manager or supervisor. All offices will be open during the lunch hour. This may be accomplished by staggering the lunch hours of employees. All overtime for non-exempt employees will be approved by the employee’s supervisor. *Field Personnel are divided into 2, 3 or more duty groups. They are on call 24 hours every day to cover field work, unless one of the following applies:  holiday scheduled to be off, at managers’ and workload discretion,  on approved leave, vacation or comp days,  weekends and days off will be at managers’ discretion,  when released from call by your supervisor, On call means that your supervisor should be able to contact you and you should be able to report for work within 1 hour. Keep in mind that it is your responsibility to let your supervisor know if it would be unsafe for you to work due to fatigue or any other circumstance that makes you not fit for duty. Workload will determine hours worked, however, normal work hours are as follows: Corporate and Clerical Office Staff Monday through Friday 8:00 AM to 5:00 PM and as needed to support operations. (with lunch breaks of a minimum of 30 minutes*) Saturday as needed to support operations. District Management Full duty group status, off every other weekend 3 days (Friday, Saturday, Sunday, NO MONDAYS OFF). Work duty Saturday a minimum of 6 hours. Monday through Friday 7:00 a.m. to 5:00 p.m. or as customer requirements dictate with lunch breaks.

20 District Field Personnel Monday through Friday 8:00 AM to 5:00 PM (with lunch breaks of a minimum of 30 minutes*) if not working in the field. Workload will dictate hours worked in the field. Saturday as needed to support operations. Weekends and days off will be at manager’s discretion (see above *Field Personnel). District Office Shop Staff Monday through Friday 8:00 AM to 5:00 PM (with lunch breaks of a minimum of 30 minutes*). Saturday as needed to support operations unless otherwise noted. Breaks 10:00 AM to 10:15 AM and 3:00 PM to 3:15 PM *Lunch breaks will not be paid unless on company related business. Exempt employees are expected to work all scheduled “duty days and duty weekends” unless a paid benefit is used for the time off. Clock-In and Clock-Out Policy The electronic biometric (hand or finger scan) time clock located in each FESCO District Office is the official and primary time-keeping device for FESCO employee compensation. When not available, FESCO secondarily records the clock-in and clock-out times of employees possessing a company-issued cell phone using a cell phone app (MComet). The following list details and clarifies the proper use of FESCO’s time-keeping devices. 1. Time-Keeping Device Use a. All personnel must use the electronic biometric time clock when i.Working in your home district office. ii. Assisting another FESCO district and staying in onsite FESCO housing. iii. Assisting another FESCO district and working in their office, shop or yard.

21 b. Employees with a company-issued cell phone must clock in/out using the MComet app when i. Staying in out-of-district housing (hotels, etc.) and working at a client job site. 1. Clock-In time occurs when your vehicle leaves your lodging location destined for the client job site. 2. Clock-Out time occurs when your vehicle arrives back at your lodging location. 3. Clock-In/Out must also occur for all personal time incurred during to/from job transit. c. If neither time-keeping device is available, i. If working alone, record your clock in/out times and call/text/email them to your District Manager (or his designee) at your first opportunity at least once daily. ii. If not working alone, match your time to that of the lead man working on your shift. d. Clocking in/out for another employee with MComet is strictly prohibited. e. FESCO may routinely use MComet to ensure policy compliance and product functionality. 2. Company-Issued Cell Phones a. Company-issued cell phones come pre-provisioned with settings and apps required by FESCO when issued. All attempts to change locked phone settings are strictly prohibited. “Location Services” and “Cellular Data” must always remain “on”. b. Unless on days off, company-issued cell phones must at all times be on or near your person, have a charged battery, be powered on and be able to receive/make calls and texts. Failure to adhere to this policy will result in disciplinary action up to and including termination.

22 PAY CALCULATIONS You may need to review the “Time Off From Work” section of this handbook to check the eligibility requirements for paid time off. Non-exempt Employees: If you are classified as a non-exempt employee (see section on “Employee Classifications” for the definition of non-exempt) you will be compensated as follows: 1. Straight time (regular hourly rate) for all hours worked (clocked) up to 40 hours in any given work week. 2. Overtime (one and one-half times your regular hourly rate) for all hours worked (clocked) over 40 hours in any given work week. 3. Vacation time (see “Time Off From Work” section for eligibility) will be paid at your regular hourly rate, 8 hours per day for every day of vacation you take, regardless of hours worked (clocked) in that work week. Partial days of vacation are not allowed. Vacation hours do not count as hours worked for overtime purposes. 4. Holidays (FESCO observed) will be paid at your regular hourly rate, 8 hours per holiday regardless of hours worked (clocked) in that work week. Holiday hours do not count as hours worked for overtime purposes. 5. Extra holiday pay will be given to employees who actually work on a holiday and FESCO has authorization from our customer to charge extra for this time. The extra pay depends on the amount charged to the customer, hours actually worked, and the number of employees who worked on the holiday. 6. Sick leave (see “Time Off From Work” section for eligibility) will be paid at your regular hourly rate for time off due to your own personal illness/injury. You will receive compensation (up to 8 hours per day) for time needed in any given work week to reach 40 hours. Sick leave is not compensable if you have 40 hours or more in the week you were out sick. Other benefit pay will be applied towards your 40 hour work week before sick time is compensable. Only compensable hours of sick time will be deducted from your sick leave balance. Sick leave can only

23 be used for yourself and may not be used for absences due to the sickness/injury of family members. Sick leave cannot be used for a work related illness or injury. 7. Jury duty leave will be paid at your regular hourly rate for time off from work due to jury summons. You will be compensated up to 8 hours per day for the hours needed to reach a 40 hour work week. Jury duty leave is not compensable for hours beyond a 40 hour work week. 8. Funeral leave (see “Time Off From Work” section for eligibility) will be paid at your regular hourly rate for compensable time off. You will be compensated for a maximum of 4 days (8 hours per day) to reach a 40 hour work week. Not compensable for hours beyond a 40 hour work week. 9. Eligible H2S hours will be paid at the H2S straight time rate (see separate memo for current rate and eligibility) for hours worked up to 40 in a given work week. H2S hours will be paid at time and one half the current H2S hourly rate for hours worked over 40 in a given work week. 10. Workers’ Compensation After you return to work, if you are no longer receiving workers’ compensation income benefits from the insurance carrier, you should tell your manager or FESCO’s Director of Benefits & Risk Management if your work-related injury or illness causes you to miss work (e.g., for follow-up doctor’s appointments). You may be eligible to receive a wage supplement from FESCO for the time absent from work up to a maximum of 40 hours in a work week (including pay for hours worked and other benefit pay. Not compensable beyond 40 hours.) 11. Inclement weather leave will be paid at your regular hourly rate for time off from work due to severe weather that disrupts normal business operations. You will be compensated up to 8 hours per day for the hours needed to reach a 40 hour work week. This leave is not compensable beyond a 40 hour work week. Inclement weather pay will require the verification and approval of your supervisor. Exempt Employees: If you are classified as an exempt employee (see section on “Employee Classifications” for the definition of

24 exempt) you will be compensated as follows: If you are an exempt employee, you will receive your annual salary over 26 pay periods per calendar year. The following is incorporated into your salary: 1. Vacation time per current policy 2. Sick leave per current policy 3. FESCO observed holidays per current policy 4. Jury duty per current policy 5. Workers’ compensation leave per current policy 6. Inclement weather pay for time off from work due to inclement weather in the area of FESCO’s business location. This benefit will be compensable with the approval of your supervisor. Salary Administration: FESCO strives to maintain salaries that compare favorably with those prevailing in the local job market for corresponding work performed under similar conditions. As a general rule, decisions on when raises are given and the amount of these raises are made by upper management and are based on the recommendations from the employee’s supervisor. Factors used in determining the approval of a raise and the amount of a raise are: 1. Financial conditions of the company 2. Employee’s overall job performance 3. Employee’s job classification 4. Employee’s evaluation scores 5. Employee’s safety record 6. In the case of field employees, number of training tests completed taking into consideration the employee’s tenure. 7. The timing and amount of previous raises An employee’s compensation rate is confidential information and any discussion about rates will be confined to employee, supervisor and Alice management.

25 Bonus Program: Cash bonuses are an optional part of FESCO’s compensation program issued at the discretion of upper management based on the financial performance of the company during the fiscal year. FESCO’s fiscal year runs January1st through December 31st. Should a bonus be issued, checks are normally distributed on or before March 15th. Only full-time and reduced-hour employees of FESCO, Ltd. (excluding FESCO Supply and other FESCO subsidiaries) are normally eligible for bonuses. The amount of bonus paid to an employee is based on: 1. Employee’s overall job performance during the fiscal year 2. Employee’s average monthly wages (including overtime) during the fiscal year 3. Employee’s job classification 4. Employee’s safety record 5. Employee’s evaluation scores 6. In the case of field employees, number of training tests completed, taking into consideration the employee’s tenure. 7. The number of months the employee was on the payroll during the fiscal year (prorated accordingly). 8. Must be an active employee to receive bonus. The criteria for determining bonuses can be changed by management at any time. The bonus program was initiated to reward eligible employees for a job well done; however, employees should bear in mind that bonuses are not a guaranteed part of compensation and should conduct their personal financial affairs accordingly.

26 EXPENSES Offshore and Inland Waters Employees will be paid a meal allowance per current policy when away from their district office for work related time. Any meals charged to FESCO or paid by FESCO and any personal long distance phone calls or personal mobile phone air time is subject to being deducted from your expense reimbursement or paycheck. Field Employees will be paid a meal allowance per current policy when away from their district office for work related time. Any meals charged to FESCO and any personal long distance phone calls or personal mobile phone air time are subject to being deducted from your expense reimbursement or paycheck. Customer Relations All reasonable expenses incurred for legitimate customer relations will be reimbursed. Employees are not to buy alcoholic beverages for customers or themselves. Expenses other than meals will need the approval of the District Manager. Receipts are required with customer’s name and company. Miscellaneous Expenses Any miscellaneous expenses employees incur on FESCO’s behalf will be reimbursed by petty cash or through your expense report. Keep in mind that major purchases need the approval of your supervisor and receipts are required for all purchases. Expense reports cover a calendar month. Submit them immediately following the last day of the month. Expense checks are mailed out of the Alice office on the 17th of each month (unless that day falls on a weekend or holiday). For current allowance rate, check with your supervisor or the Human Resource Department in Alice.

27 PERSONAL VEHICLE MILEAGE ALLOWANCE FESCO appreciates the employee’s use of their personal vehicles for company business. When the use is approved in advance by your supervisor, FESCO will pay a per mile reimbursement rate for the use of the vehicle. For the current per mile reimbursement rate, check with the Human Resource Department. Mileage to be reimbursed needs to be reported on your monthly expense sheet to include details of the business necessity. Note: If you use your personal vehicle for FESCO use and are involved in a vehicle accident, your personal auto insurance will be primary coverage with FESCO’s insurance as secondary.

28 REIMBURSEMENT FOR PERSONAL PROPERTY DAMAGED OR DESTROYED ON JOB The following guidelines apply to personal items damaged or destroyed on the job due to accident, while on location, in transit to and from a job or at a FESCO office: 1. FESCO’s liability will be limited to work related items and will be capped at $500 or the deductible of the employee’s homeowner’s or renter’s insurance, if applicable, whichever is less. 2. An itemized list with current replacement cost plus tax will need to be submitted to the employee’s supervisor. The supervisor will review the list, delete non-work related items, approve, and send to the Human Resource Manager. The supervisor should use good judgment on what is approved and consult the Human Resource Manager if there are any questions. 3. If the employee has homeowner’s or renter’s insurance, a copy of the policy or letter from the insurance agent verifying the deductible for personal property lost away from home will be required. It should be sent with the itemized list to the Human Resource Manager. 4. FESCO issued equipment is not included in this policy and will be replaced by FESCO. 5. Personal protective equipment (e.g., work boots, prescription safety glasses) not issued by FESCO will be replaced by FESCO taking into consideration item #7 of this policy. 6. If an employee without homeowner’s or renter’s insurance is involved in an accident in which a third party is at fault and files a claim and receives a payment from the third party, he will be expected to reimburse FESCO for any payment FESCO has made pursuant to this policy. 7. In all cases, common sense should prevail, taking into the consideration the condition and age of the items, with “fairness” being the object for both FESCO and the employee.

29 TIME OFF FROM WORK VACATIONS Full-Time employee vacation earned per eligible anniversary year is as follows:  6 month anniversary 1 week (5 days)  1 year anniversary 1 week (5 days)  2nd through 4th anniversary 2 weeks (10 days)  5th through 9th anniversary 3 weeks (15 days)  10th anniversary plus 4 weeks (20 days) The amount of vacation earned by Reduced Hour employees will be pro-rated based upon the average number of hours worked per week between anniversary dates. The number of days the Reduced Hour employee will receive is determined by the following: Average hours worked divided by 40, multiplied by the number of days as listed in policy per tenure. The anniversary date for purposes of earning vacation for Part-Time employees who are reclassified to a Full-Time or Reduced Hour status will be their reclassification date. Vacation will be earned one year after the reclassification date. Vacation for Full-Time and Reduced Hour employees can only be earned after each eligible anniversary year. Accrual for an employee on extended leave (three or more months) regardless of reason will be calculated as follows: Average hours per week for the twelve months prior to the anniversary date divided by 40 (40 is the basis for 1 week of vacation) equals the percent of accrual for level of tenure. Example: A 3 year tenured employee who would normally accrue two weeks of vacation and who averages 20 hours per week for the twelve month applicable period:

30 20 / 40 = .50 x 10 days vacation = 5 days vacation For purposes of this policy, only years worked in a Full-Time or Reduced Hour status will qualify as eligible anniversary years. Previous tenure of a rehired employee will not be used to calculate vacation accrual. Scheduling of vacations will be made by the employee, and subject to supervisor approval. The employee reserving specific time dates first will have the primary right to that time. If two employees request the same dates, at the same time, the employee with the most tenure will be given first choice. Vacations in excess of two weeks must be approved by the employee’s supervisor. Vacations taken in whole weeks may commence after a duty weekend or a weekend off. If a one or three week vacation begins after a weekend off, the vacation will end on Friday and the employee will be expected to return to work on the next duty day, even if that day is a Saturday ending the last week of vacation. If a holiday falls within a vacation and the employee was due to be off, the employee will not be charged a day of vacation for the holiday. If a holiday falls within a vacation and the employee was due to stand duty on the holiday, the employee will be paid a day of vacation in place of the holiday. Because regular days off are not paid, if one falls within a vacation, non- exempt employees will need to charge that day as a vacation day in order to be compensated for it. Employees will be allowed to carry over a maximum of four weeks of unused vacation on their anniversary date. Vacation days in excess of four weeks will be forfeited. Employees will be compensated for non-forfeited unused vacation if any, upon termination of employment. Compensation All non-exempt employees will receive 8 hours of straight time pay

31 for each day of vacation taken regardless of clock hours during the work week. Non-exempt employees will be allowed to designate a regular day off as a vacation day if they want to be compensated for it. Vacation pay for exempt employees is considered a part of their salary and no extra pay will be received for vacation taken. HOLIDAYS FESCO observes the following 7 holidays:  New Year’s Day  Good Friday  Memorial Day  July 4th  Labor Day  Thanksgiving Day  Christmas Day Should a holiday fall on a weekend, management may elect to grant a work day off in observance of that holiday. If the holiday falls on a Saturday, the holiday will be observed the preceding Friday. If the holiday falls on Sunday, the holiday will be observed the following Monday. In areas of operation, where duty groups are not used, the supervisor will be responsible for designating certain employees to be on call. The supervisor will have the option to release all or some employees as work load permits. In areas of operation where duty groups are used, the two groups will alternate. Because there are seven holidays, the duty groups will automatically rotate holidays from one year to the next. The supervisor for the group has the option to release a portion of the group on call as work load permits. An individual desiring to swap holiday duty with a member of the other group may do so with the supervisor’s approval. Exchanges must be between employees of near equal experience and ability.

32 Compensation Non-exempt employees, regardless of hours worked, will receive 8 hours of straight time pay for the holiday, except for a scheduled “on duty holiday” that occurs while the employee is on vacation. In that event, vacation will be paid. Should a holiday fall on a Reduced Hour employee’s regular day off, the employee will not receive holiday pay. Exempt employees will not receive additional holiday pay, but will be granted an alternate day off if they have to work on the holiday. If employee is on extended leave (leave in excess of 30 days) during which a holiday occurs, the employee will not be eligible for holiday pay, even if receiving short or long term disability benefits, unless they are paid at least 32 hours of vacation or sick leave on a regular FESCO payroll check during the week in which the holiday occurs. Please note that sick leave is not allowed for leave due to workers’ compensation. Possible Additional Compensation All non-exempt employees who work in the field on a day in which the district office is able to bill holiday charges will be eligible for extra holiday pay as follows: 1. District office must be able to bill holiday charges. 2. Total money available to be shared by the employees will be 50% of the net (after discounts) holiday charges that were billed. 3. Extra holiday pay rate per hour worked will be determined by dividing the 50% net holiday charges by the total hours worked by all eligible employees. 4. All eligible employees in the district who worked in the field on the holiday will share in the extra holiday pay even if on a job where holiday charges are not billed. 5. Though Good Friday is recognized as the Company holiday, additional compensation will only apply for work on Easter Sunday.

33 SICK LEAVE Upon completion of 180 days of employment in a Full-Time or Reduced Hour classifications, compensated sick leave will be granted for personal illness and injury. Sick leave cannot be used for family illness, personal business, or work related illness/injury. Up to 80 hours of unused sick leave can be carried over on your anniversary date, with a maximum combined balance of 160 hours. Unused sick leave will not be paid upon termination. Full-Time Employees’ sick leave will accrue per the following schedule:  at 180 days of employment 16 hours  at 12 months of employment 40 hours  at 24 months of employment 80 hours On second anniversary of employment, employee will accrue 80 hours of sick leave with the carryover of unused sick leave and newly accrued sick leave not to exceed 160 hours. In order to receive sick leave pay, employees will be required to provide a doctor’s excuse regardless of what day of the week they were sick. The doctor’s excuse must be forwarded to the Payroll Assistant in Alice that processes the district’s payroll. DUE TO CONFIDENTIALITY AND PRIVACY ISSUES, THE DOCTOR’S EXCUSE SHOULD NOT INDICATE THE SERVICE PROVIDED OR DIAGNOSIS. THE EXCUSE ONLY NEEDS TO VERIFY THE DOCTOR’S VISIT. In situations where an employee goes home sick after they have been at work or comes in late because they were sick, the supervisor will determine if a doctor’s excuse will be required based on the observed condition of the employee. In situations where an employee leaves work for a scheduled doctor’s appointment and does not return to work or misses more than five hours, a doctor’s excuse will be required in order to receive sick pay.

34 FESCO will follow current recommendations issued by the Center of Disease Control and the Texas Department of Health with regards to flu-like illness or infection with the flu virus as follows: 1) If you have symptoms consistent with influenza-like illness, you should remain at home until at least 24 hours after you are free from fever or signs of fever (chills, flushed appearance, sweating) without the use of fever reducing medications. 2) Employees will be required to provide a doctor’s excuse if sick with the flu. He or she must give their doctor’s excuse to give to their supervisor. 3) If an employee is out sick due to an illness (e.g., flu, flu-like symptoms) a FESCO Fit for Duty Form to return to work is not necessary. However, in the event that an employee has any sort of inpatient or outpatient medical care in a hospital or out-patient surgical care facility for any length of time or is under continued care, he or she will not be allowed to return to duty without a FESCO Fit for Duty Form signed by their doctor. Employees will not be returned to duty unless the release states the employee is able to perform 100% of their duties for which they were hired without restrictions. 4) For payroll purposes, please make note of these types of absences when entering time. 5) All supervisors are expected and have the responsibility to monitor this exception to the current policy and if abuse is suspected, take the necessary actions to correct it. 6) Sick leave cannot be used for absences due to diagnosis or direct care and treatment for a condition which is not medically necessary. 7) All accrued sick leave, vacation (and comp time for exempt employees) must be used beginning with the first day of sick time regardless whether or not the employee is on Short Term Disability (STD) or Long Term Disability (LTD). If the

35 employee is not able to return to work when LTD (90 days) begins, employment will be terminated, except as noted below. 8) In the event the employee requests an extension of le`1ave due to his or her disability, FESCO will consider a reasonable extension if not an undue hardship to its business operations. This policy will be applied consistent with FESCO’s reasonable accommodation obligations under state and federal law. 9) Any employee terminated under this policy may reapply for employment by submitting an employment application, and will be considered for rehire based upon FESCO’s needs, the employee’s qualifications, experience and previous job performance. RE-EMPLOYMENT IS NOT GUARANTEED. If a salaried employee misses a FULL DAY because of sickness (with exception of the flu as discussed above) when due to be on duty and does not provide a doctor’s excuse, he/she is presumed to be absent for personal reasons. The employee can elect to take a day of vacation (if accrued), comp day (if accrued) or be docked. IN SUMMARY, ANYTIME AN EMPLOYEE SEES A DOCTOR AND ANY WORK WILL BE MISSED, A DOCTOR’S EXUSE MUST BE PROVIDED FOR SICK TIME PAYMENT. A RECEIPT FROM THE DOCTOR’S OFFICE DOES NOT QUALIFY AS A “DOCTOR’S EXCUSE.” A DOCTOR’S EXCUSE PROVIDES FESCO WITH IMPORTANT INFORMATION SUCH AS WORK LIMITATIONS AND PRESCRIBED TIME OFF, IF ANY. In the situation involving not seeing a doctor but off for medical testing such as CAT scans, MRI, X-Ray, lab work, etc., the employee should ask for a verification of services rendered in order to be paid sick leave. Reduced Hour Employees’ sick leave earned per eligible anniversary year will be pro-rated based on average hours worked

36 per week for the past anniversary year. The number of hours an employee will receive is determined by the following formula: Average hours worked divided by 40 multiplied by the number of hours earned by tenure as listed in policy. The anniversary date for purposes of earning sick leave for Part-Time employees who are reclassified to a Full-Time or Reduced Hour status will be their reclassification date. Accrual for an employee on extended leave (three or more months) regardless of reason will be calculated as follows: Average hours per week for the twelve months prior to the anniversary date divided by 40 (40 is the basis for 1 week of sick leave accrual) equals the percent of accrual for level of tenure. Example: An employee who would normally accrue 80 hours of sick time on their two year anniversary and who averages 20 hours per week for the twelve month applicable period: 20 / 40 = .50 x 80 hours sick time = 40 hours sick time For purposes of this policy, only years worked in a Full-Time or Reduced Hour status will qualify as eligible anniversary years. Previous tenure of a rehired employee will not be used to calculate vacation accrual. If a holiday falls within a period when an employee is absent due to personal illness or injury and the employee was due to be off duty that holiday, the employee will receive holiday pay instead of sick pay. If a holiday falls within a period when an employee is absent due to personal illness or injury and the employee was due to be on duty, the employee is not eligible for holiday pay. Any sick time taken will require a doctor’s excuse in order to be paid. Employees have the responsibility of notifying their supervisor as soon as possible when taking sick leave and updating their status and intent to return to work.

37 Non-Exempt Employees You will receive pay up to 8 hours per day for time needed in any given work week to reach 40 hours. Example: an employee who works a total of 36 hours and was sick a full day (8 hours), would be paid 4 hours of sick time (40 hours minus 36 hours). If an employee has over 40 clock hours and is sick during the week, no sick time will be paid. Only the hours actually paid as sick hours will be deducted from the employee’s sick leave balance. Other benefit pay will be allocated toward your 40 hour work week before sick time is compensable. Exempt Employees If exempt employees work over 80 hours in a 2 week pay period no sick time will be paid. If they work less than 80 hours in a 2 week pay period the hours actually paid as sick hours will be deducted from the employee’s sick leave balance. FUNERAL LEAVE Full-Time and Reduced Hour employees are eligible for paid funeral leave on the date of employment. Employees will be compensated a maximum of four consecutive days funeral leave beginning with the day of death or the day after the death at the employee’s discretion (to include weekends off and regular days off) for the death of the following: current spouse, parents, grandparents, great-grandparents, siblings, your children, grandchildren, current father-in-law, current mother-in-law, step parents, step children and step grandparents. Funeral leave will be paid only as needed to reach 40 compensated hours, up to 8 hours per day, provided the employee worked or was on stand-by for all remaining duty days. Any time beyond 4 days may be taken as vacation, if available or time off without pay as stated in the “Personal Leave Policy.” Employees will be allowed to attend a funeral of someone not listed with approval of their supervisor. They will be allowed a reasonable amount of time off to attend the funeral. Time off will be without

38 pay or paid using vacation, if available. JURY DUTY LEAVE Full Time and Reduced Hour employees are eligible for paid jury duty leave on the date of employment. Employees will be paid only as needed to reach 40 compensated hours up to 8 hours per day, for absence while on jury duty and will not be required to make up lost time, unless it is necessary due to unusual workload. Exempt employees will receive their base pay during jury duty leave. Part-time employees are given time off without pay while serving on jury duty. Employees may retain jury duty fees. Wages during the period of jury service will not be reduced by the amount of such fees. Employees are expected to return to work upon release from jury duty. Employees must submit a copy of the summons to their supervisor as soon as they receive it and proof of service must be submitted upon completion of jury duty. PERSONAL LEAVE Extended At times, an employee may find it necessary to request an elective extended personal “leave of absence”. The employee’s supervisor will need to decide if the leave can be approved, taking into consideration the operation of the office or department. If the leave is approved, the following guidelines will apply. 1. Employees will be allowed up to a maximum of 30 days of personal leave (unrelated to FMLA or medical related leave). All accrued vacation (and comp time for exempt employees)

39 must be used beginning with the first day of leave and if exhausted, remaining days will be unpaid. If the employee doesn’t return from personal leave within 30 days, employment will be terminated. 2. Vacation and sick leave annual accruals may be affected during the actual leave of absence. 3. Any employee terminated under this policy may reapply for employment by submitting an employment application, and will be considered for rehire based upon FESCO’s needs, the employee’s qualifications, experience and previous job performance. RE-EMPLOYMENT IS NOT GUARANTEED. Personal Day Off 1. Non-exempt employees may take an unpaid personal day off with supervisor’s approval. FAMILY AND MEDICAL LEAVE 1. General Policy Statement: FESCO, Ltd. grants leave according to the Family and Medical Leave Act of 1993 (FMLA) for certain qualifying family and medical reasons. Employees may not engage in work for another employer while on FMLA leave. The following outline of employee responsibilities and entitlements are provided to make you aware of how the FMLA is applied at FESCO. Additional information is available from FESCO’s Benefits Manager. 2. Eligibility: Must be employed with FESCO Ltd. for 12 months and have worked for FESCO at least 1,250 hours during the preceding twelve months. Eligible employees may be placed on unpaid FMLA leave of absence for certain specified family and medical reasons, whether or not job-related. Employees are limited to a

40 maximum of 12 weeks unpaid FMLA leave during any “rolling” 12-month period measured backward from the date an employee uses any FMLA leave. 3. When FMLA Leave is Available: FMLA leave is available for the following reasons: a. Child Care Leave: The birth or placement (adoption or foster care) of a child. Child care leave must be completed within 12 months after the birth or placement. In addition, it can only be taken for a consecutive time period (unless FESCO agrees otherwise). b. Family Member’s Serious Health Condition: To care for an employee’s spouse, child or parent (family member) due to the family member’s serious health condition or incapacity. (Parent may include a person who, though not the natural parent, was the main care giver to the employee when the employee was a child.) An employee’s parents “in law” are not covered under this policy. c. Employee’s Serious Health Condition: For a serious health condition that renders the employee unable to perform the functions of his/her position. d. FMLA was amended in 2008 and 2009 to cover families of military personnel. Eligible employees with Active Duty Members of the Armed Forces are allowed FMLA “Qualifying Exigency” leave for a spouse, son, daughter, or parent on active duty or call to active duty status. Check with the Human Resource Department on “Qualifying Exigency” events. e. Military Caregiver Leave: Eligible employees may take up to a combined total of 26 weeks of unpaid leave to care for a covered service member during a single 12-month period. Check with the Human Resource Department on qualifying Caregiver Leave. . Employees may take combined FMLA leave for reasons “a” through “d” not to exceed 12 weeks and up to a combined 26 weeks for Military Caregiver Leave during any “rolling” 12-

41 month period. Only 12 of the 26 weeks total may be for a FMLA qualifying reason other than to care for a covered service member. Employees absent for their own serious health condition or that of the employee’s spouse, child or parent will be required to provide medical certification of the initial and continuing need for FMLA leave on appropriate FESCO forms. 4. Intermittent Leave: When certified by a health care provider as being “medically necessary” leave for a serious health condition (either the employee’s or family member’s) may be available intermittently or on a reduced leave schedule. Employees must make every reasonable effort to schedule foreseeable intermittent leave so as not to unduly disrupt FESCO’s operations (subject to the approval of the health care provider). The employee may be assigned temporarily to an alternate position that better accommodates the intermittent or reduced leave schedule. 5. Concurrent FMLA Leave and Other Leaves: Employees must use available paid leave benefits (sick leave and vacation) in conjunction with, and as part of, any unpaid FMLA leave entitlement as follows: a. Employee: 1. For non-work related event, accrued sick leave and vacation must be used. 2. For work related event, vacation must be used. b. Family Member: accrued vacation must be used. When an employee is absent from work for an on-the-job injury that is also a serious health condition under the FMLA, the absence may also be designated as FMLA leave. 6. Notice of Leave: In all cases, when the reason for an employee’s absence may

42 qualify as FMLA leave, the employee should contact FESCO’s Benefits Manager or Human Resource Manager as soon as possible to designate the absence as FMLA leave and to ensure proper reporting and documentation, including certifying the need for leave. In any event, as soon as FESCO is aware of an employee’s absence, by law, FESCO is responsible for determining the reason for the absence and if qualified, designating it as FMLA leave. 7. Reinstatement from FMLA leave: Eligible employees on FMLA leave will be reinstated to their former position, or an equivalent position, if their absence(s) for leave(s) has not exceeded their FMLA entitlement. Unless continued absence is authorized under another of FESCO’s policies, the employee must seek reinstatement on or before expiration of FMLA leave and provide certification that he/she is able to perform the essential functions of the position (with or without reasonable accommodation). Employees on FMLA leave due to their own serious health condition must provide a return to work certification on the appropriate FESCO form. 8. Additional FMLA Information: During a period of FMLA leave, an employee will be entitled to continue their insurance coverage under the same conditions that would have been provided had the employee continued to work.  Holiday pay, if any, will be paid only if the employee is receiving paid leave at the time of the holiday. All accrued sick leave (if the employee is sick), vacation (and comp time for exempt employees) will be used beginning with the first day of FMLA and if exhausted, the remaining leave is unpaid. If employee cannot return to work at the expiration of the employee’s FMLA entitlement, employment will be terminated, except as noted below. In the event the employee requests an extension of leave due to his

43 or her disability, FESCO will consider a reasonable extension if not an undue hardship to its business operations. This policy will be applied consistent with FESCO’s reasonable accommodation obligations under state and federal law. Any employee terminated under this policy may reapply for employment by submitting an employment application, and will be considered for rehire based upon FESCO’s needs, the employee’s qualifications, experience and previous job performance. RE-EMPLOYMENT IS NOT GUARANTEED. FESCO does not discriminate against any individual for exercising his/her FMLA rights. Questions regarding eligibility for FMLA leave or the procedures for FMLA leave should be addressed to FESCO’s Benefits Manager or Human Resource Manager. INCLEMENT WEATHER Non-exempt: Employees will be paid at their regular hourly rate for time off due to severe weather that disrupts normal business operations. You will be paid up to 8 hours per day for the hours needed to reach a 40 hour work week. This leave is not compensable beyond a 40 hour work week. Inclement weather pay will require the verification and approval of your supervisor before payment is made. Exempt: Inclement weather pay is incorporated into your salary and will be paid for time off that disrupts normal business operations. This benefit will be compensable with the approval of your supervisor.

44 MILITARY RESERVES OR NATIONAL GUARD LEAVE Employees who serve in the military or the reserves may take the necessary time off without pay to fulfill this obligation, and will retain all of their legal rights for continued employment under existing laws. Employees may use earned vacation time while on leave if they wish; however, they are not obligated to do so. You are expected to notify your manager as soon as you are aware of the dates you will be on duty so that arrangements can be made for replacement during this absence. MILITARY LEAVE If you are inducted into the U.S. Armed Forces, you should show your orders to your manager as soon as possible. You will be eligible for re-employment after completing military service if you re-apply within the time period specified by federal law.

45 EMPLOYEE BENEFITS EMPLOYEE BENEFITS PROGRAM FESCO has established a variety of benefits designed to assist employees and their dependents in meeting financial needs as a result of illness, disability, death, and retirement. This section of the handbook highlights some features of FESCO’s benefits program. Our group health, life insurance and retirement-related programs are described more fully in summary plan description booklets provided to employees upon eligibility to participate. Complete descriptions of our group health insurance programs are also in FESCO’s master insurance contracts with insurance carriers, which are maintained in the employee benefits section of the Human Resource Department; complete descriptions of our retirement-related programs are in the appropriate master plan documents, which are likewise maintained in the Human Resource Department. If information in this handbook and our summary plan description contradicts information in these master contracts or master plan documents, the master contracts/documents shall govern in all cases. FESCO reserves the right to amend or terminate any of these benefits or to require or increase employee premium contributions toward any benefit with or without advance notice, at its discretion. This reserved right may be exercised in the absence of financial necessity. Whenever an amendment is made to any of FESCO’s benefits, the respective plan administrator will draft and submit the amendment to FESCO’s policy committee for review and approval. The respective plan administrator will notify plan participants of all approved amendments or plan terminations. An employee whose employment with FESCO terminates should be aware that some benefits terminate at 12:00 midnight on the day designated as the employee’s termination date. Summary plan description booklets should be referred to for more details on benefit

46 termination and the possibility of continuing benefits after termination. For more complete information regarding any of our benefits, please contact the Human Resource Department. Note: The 89 day waiting period for benefits begin on date of employment for Full-Time and Reduced Hour employees or the date a Part-Time employee is reclassified to Full-Time or Reduced Hour status.

47 BENEFIT SUMMARY Benefit Comprehensive Medical Insurance Dental Insurance Cancer, Intensive Care, Accident Insurance Life, Accidental Death and Dismemberment Insurance Additional Life Insurance Short Term Salary Continuance Disability Insurance Eligibility On the 90th day after employment On the 90th day after employment On the 90th day after employment On the 90th day after employment On the 90th day after employment On the 90th day after employment Who Pays FESCO pays ±90% for employee, ±70% for dependents Employee pays 100% through payroll deduction Employee pays 100% through payroll deduction FESCO pays 100% for employee Employee pays 100% through payroll deduction Employee pays 100% through payroll deduction

48 (Benefit Summary continued) Long Term Salary Continuance Disability Insurance Flexible Compensation Plan Pre-tax Retirement Savings Plan (401(k)) Profit Sharing Plan On the 90th day after employment On the 90th day after employment Date of employment FESCO pays 100% for employee FESCO pays administrative fees for employee FESCO will decide year by year whether to match employee’s voluntary pre-tax salary deduction and to issue a profit sharing distribution. For details of benefits see current plan information provided to you upon hire or at eligibility.

49 FESCO’S WORKERS’ COMPENSATION POLICY Workers’ Compensation FESCO is committed to providing a safe and healthy workplace for its employees. FESCO provides workers’ compensation insurance to employees who are injured or become ill while working within the course and scope of employment. In the event of a work-related injury or illness, employees are required to report the injury or illness immediately to his/her supervisor. No matter how minor, an employee experiencing an injury or illness must report it to his/her supervisor at the time the injury/illness occurred. Failure to follow this procedure may result in not filing a claim in a timely manner, which may result in the claim being denied by the insurance carrier. An employee, also known as the “claimant”, may select any doctor of his/her choosing, as long as the medical provider accepts workers’ compensation insurance. An adjustor is assigned within 24 to 48 hours following the receipt of the filed claim. S/he will work closely with the employee to ensure the best medical treatment/plan is being provided to the claimant, and answer any questions. The employee is required to contact his/her District Manager or Assistant Manager once a week to provide an update of his/her condition with regard to the injury/illness IF s/he has been ordered by the treating medical provider not to return to work, which is known as “lost time.” It is the employee’s responsibility to obtain a DWC-73 Work Status Report each time s/he is seen by the medical provider for the injury/illness, and present a copy to his/her District Manager or Assistant Manager, who is responsible for sending a copy to the Health/Safety Manager and the Director of Benefits and Risk Management. If an injured/ill employee has a question regarding his/her Workers’ Compensation claim, and cannot make contact with the assigned adjustor, then direct the calls to the Director of Benefits and Risk Management.

50 Once the employee is released to full-duty, s/he is expected to return to work on the date of stipulated on the DWC-73 form. Termination An employee may be terminated for the following reasons: 1. If the employee’s doctor, at any point during workers’ compensation leave, concludes that the employee can no longer do the job for which they were hired or, if once released can no longer do the job for which they were hired, except as follows: any employee eligible for FMLA will receive all leave required under FMLA, and will not be terminated prior to the expiration of FMLA leave. An employee on workers’ compensation will not be treated less favorable than an employee on sick or other medical leave. 2. Fails to return to regular duty assignment as specified on the medical release from the attending physician. 3. Falsifies or misrepresents his or her injury or illness. 4. Fails to fully cooperate in any aspect of this policy. 5. Engages in outside employment while on workers’ compensation leave. 6. Fails to comply with any other FESCO policies and regulations. 7. Must be able to perform 100% of job he or she was hired for. Any employee terminated under this policy may reapply for employment by submitting an employment application, and will be considered for rehire based upon FESCO’s needs, the employee’s qualifications, experience and previous job performance. RE-EMPLOYMENT IS NOT GUARANTEED.

51 SERVICE AWARDS All Full Time and Reduced Hour employees are eligible for service awards, beginning on their 1st eligible anniversary of service, 5th anniversary, and 5 year service increments thereafter. Years of service are determined as follows: 1. Subtract the year hired from the current year. 2. For employees who have incurred a break-in-service, effective 12-1-97, only full calendar years previously worked will be counted in determining eligibility for service awards. The anniversary date for purposes of earning service awards for Part-Time employees who are reclassified to a Full-Time or Reduced Hour status will be their reclassification date. Tenure awards will be distributed at FESCO’s annual employee appreciation banquet. In the event no banquet is held, award recipients will be notified by letter the date and manner in which award will be distributed. Employee must be on payroll when awards are issued. Rev. 07/16

52 EMPLOYEE DEVELOPMENT ORIENTATION PROGRAM During your first few days of employment, all new employees will participate in an orientation program. During this program, you will receive: 1. Important information regarding the performance requirements of your position 2. Basic FESCO policies 3. A summary of your compensation and benefits 4. Personal protective equipment (PPE), if your job requires it, to include: a. Safety glasses, b. Hard Hat, c. Hearing protection and d. Other specialized equipment for certain jobs 5. Other information necessary to acquaint you with your job and FESCO Shop employees will be required to wear steel-toed foot wear and field employees (or other employees required to perform field work) will be required to wear steel-toed boots with at least a 1/4” heel. You will also be asked to complete all necessary employment paperwork. Field Before new employees hired to do field work can begin their normal duties they will: 1. Complete training tests as required per safety program 2. Read the safety, accident and near miss manuals 3. Learn lifting techniques 4. Learn basic trailer hook-up and towing techniques 5. Read the vehicle maintenance manual After the initial orientation period, new employees’ progress will

53 be monitored by the safety coordinator or designated senior employee for the next 90 days, who will then report to the District Manager at 30, 60 and 90 day intervals. During this period new employees will: 1. Before 60 days of employment is complete, obtain at least a class C CDL driver’s license with an “H” endorsement (able to transport hazardous material). Some offices or jobs, due to special requirements, may require a class B or class A license with the preceding or more endorsements. Failure to comply with this requirement will result in termination. 2. Complete training tests as required per safety program. 3. Complete other required reading for new employees as determined by the supervisor. 4. Receive additional handouts from the Safety Coordinator or designated senior employee 5. View required customer safety orientation videos and read customer safety manuals Shop Before new employees hired to do shop work or drive a FESCO vehicle can assume their normal duties they will: 1. Complete training tests as required per safety program 2. Read the safety, accident and near miss manuals 3. Learn lifting techniques 4. Learn basic trailer hook-up and towing techniques 5. Read the vehicle maintenance manual Shop employees will also complete the following by the end of their first 60 days: 1. Obtain at least a class C CDL driver’s license with an “H” endorsement (able to transport hazardous material). Some offices or jobs, due to special requirements, may require a class B or class A license with the preceding or more endorsements. Failure to comply with this requirement will result in termination. 2. Complete other required reading for new employees as determined by the supervisor 3. Receive additional handouts from the Safety Coordinator or

54 designated senior employee Please use this orientation program to familiarize yourself with FESCO’s policies and benefits. We encourage you to ask any questions you may have during this period so that you will understand all the guidelines that affect and govern your employment relationship with us. Failure to complete this program satisfactorily could jeopardize your continued employment with FESCO. EVALUATIONS All employees should keep in mind that your supervisor is continuously evaluating your job performance. Day-to-day interaction between you and your supervisor should give you a sense of how your supervisor perceives your performance. However, to avoid haphazard or incomplete evaluations, FESCO conducts formal reviews on set time schedules depending upon the employee’s duties and tenure. 45-Day Supervisor/Mentor Report Generally, around the 45th day of employment, each new employee is reviewed by their supervisor/mentor to see how the employee is progressing. A blank copy of the 45-Day Supervisor/Mentor Report is provided to each new employee in their New Hire Packet so they will be aware of the areas of performance in which they will be evaluated. Evaluations During an employee’s first 3 years of employment, the employee is scheduled to be evaluated annually on or about their anniversary date. After 3 years tenure, employees will be evaluated every other year (biannually) on or about their anniversary date. The exceptions to this schedule are class 3 field employees, who will be evaluated annually through the first 5 years of employment then biannually after that on or about their anniversary date. While it is FESCO’s goal to evaluate employees per the above mentioned schedules,

55 evaluations may be conducted more frequently or less frequently depending upon the business needs of the company. This evaluation is more detailed and specific than the 60 Day Progress Report so strengths and weaknesses can be discussed. A blank copy of the Evaluation Form is provided to each employee in their New Hire Packet so they will be aware of the areas of performance in which they will be evaluated. Conducting evaluations will let the employee know where they stand, what their strengths are and what needs to be done to increase their value to FESCO. Evaluations are important because they provide a good “Yardstick” to measure the performance of an employee. This knowledge is essential when promotions, raises and bonuses are being considered. It is important, however, that employees realize that evaluations are not necessarily tied into a salary review at the time of the evaluation. All evaluations are considered confidential and will be placed in the employee’s “Personnel File” after being reviewed and signed by management in Alice.

56 PROMOTIONS Promotions are based on ability. Among the things that are considered are performance, ability to take on new responsibility, experience, training, attendance, punctuality, length of service, compliance and support of company policies and procedures. FESCO makes every effort to promote from within however there are times when we hire from outside when FESCO deems it necessary and appropriate. Employees who work in the field have a structured job classification/promotion system. A copy of this system is provided to each field employee in their New Hire Packet when hired. The basic requirements for each classification are explained along with the requirements for promotion to the next classification. Benefits such as pay raises and bonuses are based on the relative value of the field employee to the operation of FESCO. By advancing in classification, a field employee will have the opportunity to increase their participation in these benefits. Each field employee is expected to read and understand the classification/promotion system and refer to it on a regular basis as they progress through the classification system.

57 VARIOUS READING AND TRAINING MATERIAL Audio Visual Program - FESCO has initiated an Audio Visual Training Program. This program is coordinated by the Safety and Training Director in Alice. Each office has been furnished a viewer-playback combination to enable utilization of the films. Each office will maintain a film library to be used in the training of employees. Employees will be required to view these films and will be tested on some of the subjects covered in them, with scores recorded having a direct bearing on salary and bonus consideration. All employees are invited to present ideas on subjects they think need to be covered. Field Data Book - Each district office has on file a “Field Data Book.” This book complements the Audio Visual Training Program in that it serves as a source for the employee to review the information found in most of the films that are produced. Library - Each office has a small library containing books on various oil field related topics. Employees are encouraged to check these books out and read them. Technical Manuals - These manuals are totally oriented towards FESCO equipment and operations. They are a valuable source of information and are required reading by all field employees. Each office has been furnished at least two copies, one of which is to be kept in the office at all times, and the other to be available for testers to take to the field to study while on extended jobs. Vehicle Maintenance Manual - This manual will enable each employee to become familiar with the FESCO vehicle maintenance program. It explains in detail the proper way to make entries in the Vehicle Maintenance Book. This manual is required reading. MSDS Books - Material Safety Data Books are kept in the shop and field vehicles. Employees should become familiar with the content of these books and refer to them as necessary.

58 Safety Manual - This book contains safety topics and rules. It is required reading for all employees. Near Miss Manual - This manual contains reports on near miss accidents. It is required reading for all employees. Accident Report Manual - This manual contains reports on accidents that have occurred and is required reading for all employees. Standard Operating Procedures (SOP) Manual - This manual was designed to serve as a guide and reference for field testing personnel. It contains standard operating procedures and job safety analyses to perform a job correctly and safely. It is also used as a training tool for new employees.

59 EMPLOYEE CONDUCT GUIDELINES OF CONDUCT In the interest of maintaining good working conditions, FESCO expects employees to observe the following Guidelines of Conduct. Although cause is not necessary for termination, violation of any of the policies and rules stated in this handbook could result in termination. Less severe disciplinary action may also be imposed for the offenses and violations set forth below. In setting forth these rules, FESCO does so only as a guide. The listing of these rules in no way will limit the imposition of disciplinary action, up to and including termination, for acts by employees that violate the normal and reasonable standards of workplace conduct as determined by FESCO. In making a decision whether an employee should be disciplined for violation of rules, and in determining the extent of such discipline, FESCO will take into consideration all of the circumstances involved and the employee’s overall work record. The following conduct is prohibited and deemed inappropriate by FESCO: 1. Falsification of records, including employment records. 2. Disclosing confidential business information to unauthorized persons. 3. Excessive tardiness or absences, regardless of the reason. 4. Absence without notification of satisfactory reason. 5. Neglect or inattention to defined job responsibilities and assignments. 6. The unlawful manufacture, distribution, dispensing, possession, sale or use of a controlled substance(s) during working hours, on the job or on FESCO property. 7. Reporting to work under the influence of alcohol or consuming alcohol while on the job. 8. Bringing or consuming alcoholic beverages on FESCO property or consuming alcoholic beverages while engaged in FESCO business off FESCO’s premises, except where authorized.

60 9. Abuse, waste, or destruction of FESCO’s equipment, supplies, goods, or any other property of FESCO, of a fellow employee, customer or visitor. 10. Leaving an assigned work area during working hours without notice and permission of a supervisor. 11. Creating or contributing to unhealthy, unsanitary, or hazardous conditions that could cause harm to the employee, fellow employees, customers, vendors, visitors or the public. 12. Possession of unauthorized firearms, explosives, or any other weapons (legal or illegal), on FESCO premises (including parking lots) while in the performance of assigned duties. 13. Violation of any FESCO’s personnel policies. 14. Violating safety rules or common safety practices. 15. Indulging in disorderly conduct or abusive language towards fellow employees, vendors, customers, visitors or the public. 16. Threatening or intimidating behavior or attempting bodily harm or injury to a fellow employee, customer, vendor, visitor or the public. 17. Insubordination or refusal of an employee to follow instructions or to perform designated work. 18. Theft, dishonesty or unauthorized removal of property of FESCO, a customer, vendor, visitor, fellow employee or the public. 19. Failure to report within seven days the conviction of any crime, deferred adjudication or probation as a result of criminal charges instituted against you. (Excluding minor traffic offenses.) 20. Unsatisfactory performance of duties. 21. Unreasonable refusal to cooperate with fellow employees, FESCO management, and supervisors. 22. Carelessness or negligence that could result in personal injury or death. 23. The destruction or damage of property belonging to FESCO, customers, vendors, visitors, fellow employees or the public.

61 24. Discourteous conduct toward employees, customers, vendors, visitors, or other persons. 25. Unauthorized use or removal of FESCO’s supplies, records, or equipment. 26. Making false, vicious or malicious statements concerning a fellow employee, customer, vendor, visitor or FESCO. 27. Illegal or unauthorized entrance onto FESCO’s property. 28. Violating FESCO’s discrimination and/or harassment policies. 29. Soliciting or accepting inappropriate gratuities from vendors or customers. 30. Disregarding security regulations. 31. Being the instigator of hurtful gossip. 32. Violation of following cell phone policy: a) ON WELL SITES: Only the lead operator per shift will carry a cell phone on location (when allowed to do so by customer policy). All other cell phones will be left in a vehicle or trailer unless a waiver is granted by their District Manager for operational purposes. Vehicles or trailers include pickup trucks, wireline trucks, travel trailers, command center trailers, hydraulic choke trailers, crane truck cabs (not crane operating cabs) and winch truck cabs. Upon finishing the initial rig-up, the lead operator will call the district office in-charge of the job to ensure they have good communication and let them know who the lead operators will be per shift and their cell phone numbers. No personal calls will be made while on duty shifts. Personnel should let their dependents know that emergency calls should be placed to the district office first so that the lead operator can be notified immediately in order to relay emergency information. b) CORPORATE SHOPS, DISTRICT SHOPS AND LABORATORY: All personal cell phones used for personal use are to be kept in personal vehicles at all

62 times when on company property. Personal calls are to be made or received only during the 15 minute break times or lunch time. Personnel should let their dependents know that emergency calls should be placed to the office phone in order that notification can be made immediately. c) DRIVING: Talking or Texting on a cell phone or other similar device while operating a FESCO vehicle is prohibited. See complete policy under “Cell Phone Use in FESCO Vehicles” under Vehicle Operations pages 83 and 87. GUIDELINES FOR APPROPRIATE AND ETHICAL CONDUCT As an integral member of the FESCO team, you are expected to accept certain responsibilities, adhere to acceptable business principles in matters of personal conduct, and exhibit a high degree of personal integrity at all times. This not only involves sincere respect for the rights and feelings of others but also demands that both in your business and your personal life you refrain from any behavior that might be harmful to you, your coworkers, and/or FESCO, or that might be viewed unfavorably by current or potential customers or by the public at large. Whether you are on or off duty, your conduct reflects on FESCO. You are, consequently, encouraged to observe the highest standards of professionalism at all times. Statement of Principles FESCO is dedicated to three concepts of service: 1. To conduct its affairs in such a way as to insure a safe, efficient and ethical operation. 2. To provide its customers with professional and up-to-date service. 3. To provide a working atmosphere in which an employee can

63 grow and prosper commensurate with his desires and abilities. Confidential Information The information obtained while on a job is confidential and is not to be released to anyone without the express consent of the customer for whom the work is performed. Trade Secrets FESCO has developed various types of physical tests on gas and oil wells in the field and laboratory. In connection with these tests, certain methods, systems, techniques, equipment designs and computer programs have been developed and perfected that are considered confidential information. For the protection of FESCO, it is absolutely necessary and essential that all matters connected with this information, including customer listings, be kept confidential. Any employee knowingly revealing any information that could cause harm or financial loss to FESCO will be subject to termination. Customer and Supplier Relationship FESCO Management and Employees will at all times conduct themselves in an ethical, honest and forthright manner in order to maintain long-term professional relationships with customers and suppliers that are built on mutual trust, integrity, service and respect. FESCO and its employees will neither: give nor receive gifts exceeding a nominal value, grant special favors, give cash or create loans to customers or suppliers. We will also not accept nor provide frequent or extravagant entertainment to our customers or suppliers to influence their behavior or encourage them to act contrary to the best interests of their company. Conduct While on the Customer’s Job Site While on the job, all employees are expected to conduct themselves in a professional manner and to communicate with the customer to insure an efficient and safe operation. An employee asked to change

64 or alter any test data obtained, should, without any reservations, refuse and report the instance to their supervisor. Any employee proven to have altered data, for whatever reason, will be subject to termination. Bonding All FESCO employees are placed under bond upon hiring. In simple terms, this means that the bonding company is insuring the honesty and integrity of the employee and will have recourse (civil or criminal) toward an employee should his actions, if illegal or dishonest, cause financial hardship to FESCO. Even though FESCO would dismiss such an employee, the employee would face proceedings initiated by the bonding company. Employee Relationships FESCO employees who date each other, must handle the relationship maturely and discreetly. DISCIPLINARY ACTION All employees are expected to observe accepted rules of personal conduct, policies, safety rules, regulations, and procedures. Any infraction thereof will result in disciplinary action to include a written warning report with possible suspension from work or immediate termination depending on the seriousness of the infraction. Warning Reports 1. Must be sent to Alice within “Three Days” of the date an employee is involved in an (A) “at fault” safety incident resulting in FESCO or third party property damage, vehicle damage or injury (B) a violation of a safety rule or practice or other employee misconduct relating to safety, whether or not damage or injury occurs. 2. The “Warning Report” must be forwarded to Alice on the date it is issued. The following language must be included in the

65 “Warning Decision” section of the Warning Report: “Any further violation of policies, safety rules, incidents, regulation and procedures will result in further discipline up to and including termination. 3. Work Suspensions: A) Should an employee receive a work suspension for disciplinary reasons, it will be limited to five work days without pay beginning with day after the incident or the date the “Warning Report” is finalized. Vacation time may not be used during the suspension period. No other benefit pay will be allowed. B) Any employee who is the driver of a FESCO vehicle and is involved in an “at fault” vehicle accident will be immediately suspended from employment, without pay, as soon as operationally and safely possible (i.e., away from district office on temporary duty helping another district) for no less than five days until all the facts and reports are obtained in order to make a further decision regarding continued employment with FESCO. Suspension will be imposed when the employee returns to their home district if incident investigation determines the employee was at fault. Vacation time may not be used during the suspension period. No other benefit pay will be allowed. 4. Any employee involved in a safety sensitive incident is subject to the loss of quarterly safety certificates or safety bonuses if being issued at the time. 5. All employees are subject to disciplinary action. An employee in a management position where record and actions show lack of commitment to safety or who is unable to improve and maintain a safe workplace will be subject to disciplinary actions, e.g., loss of future compensation and/or demotion or termination. Final action will be decided by the President of FESCO. 6. All Warning Reports are subject to review by Alice Management and, depending upon the circumstances, Management reserves the right to change the discipline from a warning to an immediate termination.

66 DRESS, GROOMING AND APPEARANCE In order to project a professional image to the public and customers, FESCO has an established dress, grooming and appearance policy. All employees are expected to use good judgment with regards to personal hygiene, grooming and appearance so as not to be offensive to others. No visible or potentially visible “body piercing” jewelry is to be worn by employees while on duty with the exception of earrings worn by female employees. Employees who are required to wear uniforms are expected to do so whenever on duty (on the clock) to include traveling between offices. Shirt tails are to be tucked in at all times. Office Staff Only tasteful clothing consistent with a business atmosphere is permitted. Office personnel occasionally doing field or shop work must be prepared to comply with the appropriate uniform policy. Shop Personnel Certain shop personnel will be allowed to wear clothing that is appropriately suited to their primary job duties, with prior approval of management. All other shop personnel will comply with the same uniform policy as field personnel. Field Personnel Due to customer requirements, OSHA standards, and FESCO Policy to safely wear a Self-Contained Breathing Apparatus (SCBA), FESCO requires that all field employees and any support staff required to go to a field location must be prepared to be clean shaven, at any time, with exceptions as defined in FESCO’s Health, Safety and Environmental Manual. This requirement is covered in OSHA Standard 29CFR 1910.134, in the FESCO Health, Safety and Environmental Manual in the respiratory protection section and in item # 5 in the “Confidential Questionnaire for Field Employees” that applicants answer during the interview process.

67 All pants, shirts or coveralls must be from FESCO’s approved vendor only. If the approved vendor is unable to provide uniforms because of unusual sizing problems, other arrangements can be made with approval by Alice. Shirts and coveralls will have the proper name and FESCO patches. If name tags are not available when uniforms are shipped, they will be forwarded to the employee and it will be the employee’s responsibility to have them put on uniforms as soon as possible. Name tags will be on the right front above the pocket. A small FESCO patch will be on the left front over the pocket. A large FESCO patch will be in the upper center rear on coveralls only. (See the Safety and Health Section of this manual for personal protective equipment requirements). FESCO will subsidize the cost of uniforms. Please check with your supervisor for current subsidy policy. FESCO will pay for one-half the cost of steel-toed rubber boots (one time only) and one-half the cost of a slicker suit (once per year) as long as FESCO’S portion does not exceed one-half the cost of FESCO’s current supplier. All FESCO patches remain the property of FESCO and must be returned to the employee’s supervisor upon termination. Employees will not be allowed to wear competitors advertising in any form of dress. CONFLICT OF INTEREST Any employee now engaged or planning to engage in any outside business interest should make immediate disclosure to the Human Resource Manager for approval by Alice Management. This disclosure will include situations in which relatives of employees are providing contract services or supplies to FESCO. In the opinion of Alice Management, should these outside interests result in a conflict of interest, the employee will be asked to terminate the outside interest. If the employee does not terminate the outside interest, employment with FESCO may be discontinued at FESCO’s option.

68 Any business venture outside FESCO that is in any way competitive with FESCO or contrary to the best interest of FESCO’s customers or that exists because of a FESCO/customer relationship is expressly prohibited. MOONLIGHTING FESCO does not wish to interfere with full-time and reduced hour employees’ personal affairs or control their time away from the company; however, it has been proven that other employment can lead to fatigue, general disinterest in a person’s job and can result in higher accident and absentee rates. Full-time and reduced hour employees should remember that their job with FESCO should come first. FESCO will take appropriate action if outside employment appears to interfere or otherwise conflict with your employment with FESCO.

69 EMPLOYEE USE OF FESCO EQUIPMENT, VEHICLES AND SHOPS Office An electronic and telephonic communications systems and all communications and information transmitted by, received from, or stored in these systems is the property of FESCO and as such are to be used solely for job-related purposes. The use of any software and business equipment, including, but not limited to: facsimiles, computers, and copy machines for private purposes is strictly regulated. Employees are not permitted to use a code, access a file or retrieve any stored communication unless authorized to do so or unless they have received prior clearance from an authorized FESCO representative. All pass codes are the property of FESCO. No employee may use a pass code that has not been issued to that employee or that is unknown to FESCO. Employees who violate this policy are subject to disciplinary action, up to and including discharge. To ensure that the use of electronic and telephonic communication systems and business equipment is consistent with FESCO’s legitimate business interests, authorized representatives of FESCO may monitor the use of such equipment from time to time. If a district office allows the use of FESCO office machines for personal use, FESCO will be reimbursed at a reasonable rate for the usage. This policy should not be abused. This policy is subject to revocation. Vehicles Only FESCO employees are to operate FESCO vehicles. No employee will use company vehicles for personal use without prior permission from Alice Management to include transportation to and from work, lunch hour transportation, personal errands, etc. District Managers will not use company

70 vehicles for out-of-town personal trips without prior permission of Alice Management. No non-FESCO personnel are allowed in company vehicles, without permission of the company. The company vehicle is to be left at the office during extended personal leave such as vacation, sickness, etc. In cases where an employee lives in the direction of a job, as a matter of convenience for FESCO and the employee, the manager has the option of allowing the employee to take a vehicle and test equipment home. For employee’s protection, FESCO suggests that the employee purchase supplemental insurance for non-owned vehicles. Shops, Equipment, Wash racks Employees will be allowed to use shops, equipment and wash racks under the following conditions: 1. Company brushes, vacuum cleaners, special cleaners, chamois, mitts, towels and other supplies are not to be used. 2. Use of power washers should be done in a judicious manner in order to minimize soap usage. 3. Old oil may be disposed of in the shop “waste oil barrel” but oil filters will be disposed of off premises at a proper disposal facility. 4. Lifts and tools should be used only with permission of the employee’s supervisor. Supplies, parts and engine scopes are not to be used. 5. No tools are to be removed from FESCO’s premises. 6. To avoid unnecessary liability to FESCO, no unauthorized people (friends, children) are allowed in shops or wash racks. 7. Only property belonging to employees will be allowed to be worked on or washed on company premises. 8. Employees are expected to clean up after themselves.

71 Use of Internet Introduction: FESCO, Ltd. provides Internet and E-mail use as a means to make its business and communication more effective. Internet and E-mail services are valuable and costly corporate resources. Their sole purpose is to facilitate the business of the company. Using these resources irresponsibly reduces worker productivity, reduces resource availability for critical business operations, compromises corporate security and network integrity, and leaves the company open to potentially damaging litigation. Users must also understand that any connection to the Internet potentially offers unauthorized users an opportunity to view or access corporate information. Therefore, it is important that all connections be secure, controlled, and monitored. To ensure that all employees understand their responsibilities, the following guidelines have been established for using company information technology (IT) resources. Any improper use of IT resources potentially jeopardizes the company’s legal standing and therefore cannot be tolerated. Policy Scope: This policy applies to all employees authorized to use computer or Internet connections supplied by FESCO, Ltd. (hereafter referred to as “Users”). FESCO, Ltd. expressly forbids the use of computer resources by any other person or employee without proper authorization. Users may only use the computer resources specifically assigned to them by FESCO, Ltd. FESCO, Ltd. forbids use of computer resources assigned to other Users without proper authorization. This policy applies at all times of the day (not just work hours) and to IT use from any local or remote access location.

69 Privacy: ● All communications and information transmitted by, received from, or stored using company resources constitute company records and are the property of the company. ● Users should have no expectation of privacy regarding anything they create, store, send or receive on the company’s IT system. ● FESCO, Ltd. maintains the right (but not the obligation) to monitor, access, retrieve or delete all Internet access, E-mail and file activity passing through or stored on its IT system without prior User notification. ● The Company has the right to utilize hardware or software enabling it to identify and block access to Internet sites containing sexually explicit or other material it deems inappropriate in the workplace. ● All passwords, codes and access rights are the property of FESCO, Ltd. For security reasons, managers and department heads possessing sensitive information can password-protect sensitive information areas. However, they must make passwords available upon request to upper management or to authorized EDP personnel when needed for IT resource maintenance or troubleshooting. ● Password use or any other security measure does not create any User privacy rights, or in any way diminish FESCO, Ltd.’s rights to access information. Permitted Use: ● To ensure security and avoid the spread of viruses, Users accessing the Internet through a computer attached to FESCO, Ltd.’s network must do so through a company-approved Internet firewall or other approved security device. Bypassing the company’s computer network security by accessing the Internet directly via modem or other means is strictly prohibited unless you have prior explicit approval from upper management or the EDP Department. ● FESCO, Ltd. Internet connection and E-mail systems are primarily for business use. FESCO, Ltd. allows use of its Internet and E-mail systems for all legitimate company business.

70 ● Unless previously approved by FESCO upper management, all company E-mail accounts are for legitimate business use only, not personal use. Obtain your own private E-mail account for personal use. Forward excessive amounts of personal E-mail received on your company E-mail address to your personal E-mail address so you can view them later at home on your own time. ● Users may use company Internet access during lunch or company-approved break periods to check the status of any company-assigned benefit (e.g., 401k contributions or asset allocations, etc.) ● Occasional personal use of short duration is permitted during lunch and company-approved break periods. ● Personal use of IT resources as defined above must a) not interfere with the User’s job performance or that of any other employee; b) not have an undue effect on the client computer or the computer network's performance; c) be consistent with professional and ethical conduct; d) adhere to all provisions contained in this agreement regarding responsible Internet access and E-mail use. Prohibited Use: Users shall not use FESCO, Ltd. Internet or E-mail services to view, download, save, receive, or send material related to or including: ● Offensive content of any kind, including pornographic material. ● Promoting discrimination on the basis of race, gender, national origin, age, marital status, sexual orientation, religion, or disability. ● Threatening or violent behavior. ● Illegal activities. ● Gambling. ● Seeking employment opportunities elsewhere. ● Personal financial gain. ● Forwarding E-mail chain letters. ● Spamming E-mail accounts from FESCO, Ltd. E-mail services or company machines.

71 ● Material protected under copyright laws. ● Sending business-sensitive information by E-mail or over the Internet. ● Dispersing corporate data to FESCO, Ltd. customers or clients without authorization. ● Opening files received from the Internet without performing a virus scan. ● Tampering with your company identification handle in order to misrepresent yourself and/or the company to others. ● Frivolous Internet or E-mail use that unnecessarily consumes finite Internet bandwidth or other IT resources during normal business hours (Monday through Friday, 8:00 AM to 5:00 PM), e.g., listening to radio stations via the Internet, sending or downloading large data files unnecessarily, etc. ● Installing any unauthorized third party or Add-On software products (free or otherwise) without EDP approval. Examples include AOL, Kazaa, Weatherbug, HotBar, etc. Many such software products contain numerous email ads and send email address information to other sites, thus increasing receipt of SPAM E-mail. Other software products cause computer operating system instability or failure. Responsibilities: FESCO, Ltd. Internet and E-mail Users are responsible for the professional, ethical and lawful use of the IT system. Users are responsible for: ● Honoring acceptable use policies of networks accessed through FESCO, Ltd. Internet and E-mail services. ● Abiding by existing federal, state, and local telecommunications and networking laws and regulations. ● Abiding by copyright laws regarding protected commercial software or intellectual property. ● Not overloading networks with excessive data that may interfere with the ability of others to make effective use of FESCO, Ltd. network resources or otherwise wasting finite IT resources. ● Clearly address all E-mail correspondence with a concise descriptive subject line and your contact information. Minimal

72 contact information should include your name, title and company. Violations: Violations will be reviewed on a case-by-case basis. If it is determined that a User has violated one or more of the above use regulations, that User will be disciplined by their supervisor according to published company disciplinary action policy. The User’s future IT resource use will also be closely monitored. If a gross violation has occurred management will take immediate action. Such action may result in the loss of Internet and/or E-mail privileges, severe reprimand, or termination of employment at FESCO, Ltd. Personal Web Sites: Employees are not to mention FESCO link to the company’s web site or use company information or logos to/on their personal web site without FESCO’s permission.

73 SOCIAL MEDIA POLICY The purpose of this policy is to outline FESCO, Ltd.’s (“FESCO”) communications practices through social media (for example, LinkedIn, Twitter, blogs, Facebook, etc.) and provide guidelines for the use of social media by all FESCO employees. As an employee of FESCO you have an obligation to follow the provisions of this Policy and its objectives. Social media, including social networking sites, online forums, blogs and media sharing services are powerful communications tools that can give a significant impact on organizational and professional reputations. Because they blur the lines between personal voice and corporate voice, we have developed this Policy to help clarify how best to enhance and protect personal, professional, and corporate reputations when participating in social media. Scope This Policy applies to all employees of FESCO, Ltd. and its affiliated companies. Any FESCO or affiliated Company employee who violates this Policy may face disciplinary action up to and including termination of his or her employment. Definition The Designated Spokesperson is Steve Findley, President, or his designee authorized in writing. Policy The following boundaries apply to use of social media as it related to FESCO;

74 1. You must adhere to all company policies, including our Code of Business Conduct and Ethics, our Discrimination and Harassment Policy, and conduct rules in the Employee Handbook (Compliancewire.com) along with all updated policy revisions when using social media. 2. You are responsible for what you post online. Any post which adversely affect your job performance, the performance of fellow employees or otherwise adversely affect others who work on behalf of FESCO or its legitimate business interests may result in disciplinary action up to and including termination. 3. Inappropriate postings that may include discriminatory remarks, unlawful pornography, threats of violence or similar inappropriate or unlawful conduct will not be tolerated and may subject you to disciplinary action up to and including termination. 4. Only FESCO’s designated Spokesperson can speak or write on behalf of FESCO in social media. Refer all media inquiries concerning FESCO or others working with FESCO to the Designated Spokesperson. 5. You may indicate that you work for FESCO on your personal site but you cannot discuss information that is confidential, proprietary, financial, operational or legal in nature, including customers or suppliers’ similar information. For example: customer name or contact information, wellsite name or location, region, service type, etc. 6. Refrain from using social media while on work time or on company equipment. Work time does not include approved break time. 7. Do not use FESCO’s email address to register on social network, blogs or other online platforms.

75 Social Media Guidelines In addition to the existing policies and boundaries outlined above, and to assist you in making responsible decisions about your use of social media, we have established these guidelines for appropriate use of social media: 1. Be aware of the effect that your actions may have on your image, as well as FESCO’s image. The information that you post or publish will be public information for a long time – you cannot take it back. 2. Be aware that we monitor content and information posted about FESCO though Social Media. 3. Express only your personal opinions. Never represent yourself as a spokesperson for FESCO. If FESCO is the subject of your post, be clear that you are an employee and the views do not represent those of FESCO, Ltd. or its employees or others working on behalf of FESCO. It’s best to include a disclaimer such as “The postings on this site are my own and do not reflect the view of FESCO.” 4. Be fair and courteous to fellow employees, customers, contractors and others working on behalf of FESCO. Remember that you are more likely to resolve work-related complaints by speaking directly to your co-workers or speaking to Human Resources rather than by posting complaints to a social media outlet. Avoid using statements, photographs, video or audio that reasonably could be viewed as malicious, obscene, threatening or intimidating, that disparage customers, employees or others working on behalf of FESCO, Ltd. or that might constitute harassment or bullying. Examples of such conduct might include offensive posts meant to intentionally harm someone’s reputation or posts that contribute to a hostile work environment on the basis of race, sex, disability, religion, or any other status protected by law or company policy.

76 5. If you see something online that alleges unlawful or unethical conduct by a FESCO Ltd. employee, please report it immediately to your supervisor or to the Human Resources Department. 6. Do not post images of FESCO employees while working. 7. Do not use or post any copyrighted material, trademarks, service marks or other intellectual property. 8. Do not create any FESCO social media platform account (Facebook, LinkedIn, Instagram, etc.) without the expressed written consent from FESCO. Section 7 Rights Nothing in this policy is intended to restrict employees’ rights under Section 7 of the NLRA to engage in protected concerted activity or any other law. Retaliation Prohibited An employee will not be retaliated against or adversely affected for reporting a violation or possible violation of this policy or for cooperating in an investigation. Any employee who does retaliate will be subject to disciplinary action up to and including termination. Amendment FESCO reserves the right to modify or amend this policy at any time. This policy will be implemented and / or updated consistent with applicable laws.

77 LOSS OF TOOLS OR EQUIPMENT Should an employee lose a tool or piece of equipment through personal neglect, he or she will be required to replace the lost items at their own expense. Any lost items purchased by an employee must conform with current “Alice Rig-Up Specifications” in regards to quality and brand. These specifications can be obtained by contacting the Shop Operations Manager. Field employees are expected to inventory their truck prior to leaving for a job and before they leave the job. If a tool is missing prior to leaving for a job, a notation should be made on the blackboard in the shop stating item(s) missing, truck number, date and initials of the employee. This process will absolve that employee from having to replace the tool and put the obligation on whoever had the truck previously. Any equipment abuse or vehicular accident involving gross negligence on the part of an employee that results in unnecessary expenses to FESCO could subject the employee to having the cost of the repair work deducted from their paycheck (in installments so as not to impose financial hardship or reduce wages below minimum wage). The decision to exercise this policy will be left up to upper management in Alice. Any theft on company property because of negligence on the part of an employee to secure vehicles, shops and location could result in termination. Gross negligence will be decided by Alice management, taking into consideration the details of the incident, history of previous incidents, overall attitude and exhibited behavior both prior to and following an incident.

78 TOBACCO USE FESCO, Ltd. is committed to a safe, healthy and productive workplace for all employees. All FESCO, Ltd. buildings, offices, shops (except in “Designated Smoking Area”), vehicles, trailers and mobile homes are designated as “Non-Smoking” areas. Smoking is not allowed while performing physical job functions. Additional work breaks, beyond those allowed under the company’s break policy, should e limited for the purpose of smoking. The “Designated Smoking Area” must be located at a break area that is in a well-ventilated area of the shop. Consider combustible sources when selecting a “Designated Smoking Area” and have a container present for the proper disposal of cigarette butts. Cigarette butts, cigar butts and tobacco chew/spit should be disposed of properly and safely (not on parking lots, shop floors, drinking fountains or in waste baskets). In order to prevent spillage in a vehicle’s air conditioning ducts, behind vehicle dashboards, etc. a “hands free self-closing lid” cup container must be used for the use of smokeless tobacco while in vehicles, offices, shops and travel trailers. All closed lid spit containers must be removed and disposed of immediately upon completion of use. Many of our customers have smoking restrictions. All FESCO, Ltd. employees are required to follow the smoking and tobacco use policies of our customers when working at the customer’s site.

79 SAFETY AND HEALTH COMPANY’S COMMITMENT FESCO is committed to providing a safe and healthy work environment. In this commitment, FESCO makes every effort to comply with relevant federal and state occupational health and safety laws and to develop the best feasible operations, procedures, technologies, and programs conducive to such an environment. FESCO’s policy is aimed at minimizing the exposure of our employees, customers, and visitors to our facilities and work locations to health or safety risks. To accomplish this objective, all FESCO employees are expected to diligently maintain safe and healthy working conditions and adhere to proper operating practices and procedures designed to prevent injuries and illnesses. The responsibility of all FESCO employees in this regard include: 1. Exercising maximum care and good judgment at all times to prevent accidents and injuries; 2. Reporting to supervisors and seeking first aid for all injuries, regardless of how minor; 3. Reporting unsafe conditions, equipment or practices to supervisory personnel; 4. Using safety equipment provided by FESCO when required; 5. Observing conscientiously all safety rules and regulations; and 6. Notifying their supervisors, before the beginning of the workday, of any medication they are taking that may cause drowsiness or other side effects that could lead to injury to them, their coworkers or other persons. The major concern on any FESCO job is the prevention of accidents. Accidents can affect YOU and FESCO causing:

80 1. Pain and suffering 2. Adverse effects on others involved, such as supervisors, co-workers, friends and family 3. Loss of vitally needed manpower 4. Increased cost of operation 5. FESCO to be removed from customers’ approved vendors list Although it is not the most important reason, No. 4 can greatly affect you and your fellow workers. Money that might otherwise go into purchases of equipment, hiring, bonuses or advancement of salaries is paid out for insurance and to replace and repair damaged equipment. Serious accidents or a reputation of being unsafe projects an unfavorable image to customers and the general public. While an employee’s immediate supervisor is responsible for pointing out potential hazards and how to overcome them, the desire to work safely rests on the individual. Safety is a personal choice. Every operation can be performed safely. If you do not know how, ask. Certain standards of personal, automotive and operation safety have been arrived at by experience. You are expected to learn these and abide by them. Safety is the most important part of any job. Disregarding this fact can result in injury, economic loss, even your job and more importantly result in loss of life. Each employee is required to read the “FESCO Safety Manual” located in each office that explains FESCO’s safety program in detail. Language Requirements to Help Ensure Personnel Safety and Operational Efficiency FESCO is very concerned that language barriers may cause a safety danger to our employees and/or customers or operational efficiency problems in the office environment. Because of these concerns and as mandated by some of our customers via Master Service

81 Agreements (MSA), FESCO requires all employees to communicate in English while conducting FESCO business in the office, shop, or field. FESCO appreciates its bilingual employees. We also realize that some customers occasionally request that we communicate in a language other than English. When you receive such a request, please honor it, if able, then immediately brief all FESCO personnel in English. Supervisors will be expected to enforce this policy consistently and fairly without exception according to the normal disciplinary action process recorded in the “Employee Handbook”. SAFETY INCENTIVE PROGRAM Safety Awards and Job Performance Bonus Payments are an optional part of FESCO’s compensation program issued at the discretion of upper management based on the financial performance of the company. A. Safety Awards: 1. Eligibility: a. Must work the entire quarter and average 30 hours per week (does not include sick leave paid hours). b. Must promote safety on an individual basis. c. Must work one full calendar quarter without any work related personal injury that results in lost time or medical treatment and not be responsible for a vehicle or equipment accident. 2. Individual Awards: a. Certificates will be awarded quarterly. b. Quarterly certificate will be forfeited under step two and three of disciplinary action guidelines. (See Disciplinary Action policy in this handbook.) c. Certificates will not be replaced if lost or destroyed.

82 3. Group Awards: a. A district office and administrative office safety group will be awarded a sit down or catered meal if it meets the company’s annual pre-determined incident rate goal. b. Each group member qualifying for the award will receive a matching group safety certificate for each quarterly individual safety certificate received during the year if the office or group meets the incident rate goal. c. A safety plaque will be provided for all districts/groups that meet their safety goals. This plaque will be presented at the safety banquet. d. Group certificates will not be replaced if lost or destroyed. Safety Award Redemption Policy Certificates may be accumulated and used whenever the employee elects. Certificates are non-transferable and expire two weeks after termination of employment. (Contact the Human Resource Department for the value of old certificates that do not state value.) Certificates can be redeemed for items recognized as an appropriate award item but not for reimbursement of normal operating or living expenses, (ask your District Manager if in doubt) as follows: 1. Employees may purchase and pay for items from the store of their choice, then turn in a dated and itemized receipt and the appropriate number of certificates with your Monthly Expense Report for reimbursement within two months from the date of purchase. OR 2. Employees may redeem certificates directly at Surplus Outlet in Alice.

83 In either case above, the certificate has the same value. Store receipts more than two months old will not be accepted. Enter the amount of your receipt up to the total value of the number of award certificates you submit. No credit will be issued to employees if the receipt is less than the value of the certificates you redeem. You may elect to submit one less certificate in order to receive full value for certificates. Employees should retain a copy of their receipt for warranty purposes. FESCO cannot return receipts. Petty cash will not be used for purchases or reimbursements. Merchandise cannot be charged to any FESCO charge account. B. Job Performance Incentive Bonus 1. Encourage safety by promoting teamwork (everyone looking out for each other) while getting ready for a job in the shop, pre and post trip inspections, getting to/from location, performing the job, and the immediate after-job activities in the shop (e.g., unloading equipment, parking vehicles and equipment, cleanup of equipment and vehicles, etc). 2. Encourage field employees to proactively move up in personnel classification. 3. Encourage safe work habits and teamwork among shop personnel regarding safety issues. 4. Encourage efficient and error free job operations. Bonus Payment: 1. Bonus will accrue by pay periods and paid once a month. Employees can check with district office staff for payment dates throughout the year. 2. Checks will be mailed to the district office via overnight delivery for distribution to employees. 3. Bonus Eligibility and Disqualifications (refer to current Job Performance Incentive Bonus Memo) Training/Safety

84 A. Training of personnel: 1. Training videos, pamphlets and current tests will be revised as necessary with assistance from different offices and individuals. New training material will be developed for specialized and mandatory training needs. 2. Mechanics, painters and other specialty positions will be allowed to take outside training to update their skills, with their supervisor’s approval. B. Shop Safety: 1. Unannounced safety inspections will be made. 2. Keep lifting equipment well maintained and use it. 3. Repair/replace defective shop equipment immediately. 4. Look out for each other’s safety - remind fellow workers when they forget safety guidelines. 5. Post and observe warning signs in dangerous areas. 6. Evaluate wash rack floors to ascertain what can be done to improve footing. 7. Safety Coordinator should take an active role in shop safety and to develop a checklist to aid in inspecting equipment. 8. Safety glasses with side shields will be worn when in a FESCO shop (not shown as a safe area) and safety toed footwear will be worn when performing shop duties. Canvas type shoes will not be permitted. Other personal protective equipment will be worn as needed to protect the wearer and will be kept in good repair. 9. Good housekeeping will be maintained on a daily basis. 10. District Managers, Assistant District Managers, Safety Coordinators, and supervisors will take the lead in safety compliance. C. Field Safety: 1. Hard hats, safety glasses with side shields and steel toed boots with at least a ¼" heel are mandatory in the field. Exceptions will be made while in location living quarters, vehicle or office building. Employees can change into lighter safety toed footwear after rig-ups are completed if both the District Manager and customer approve. 2. Other personal protective equipment will be worn as required

85 (e.g., fall protection equipment, respirators, hearing protectors, slicker suits, gloves, etc.) 3. If at all possible, have customers’ employees or their rental equipment representatives on location to operate non-FESCO equipment (e.g., hydraulic valves, etc.) 4. Field personnel should check in periodically (at least daily) with their district office to let them know of their status and to insure communications in case of an emergency. 5. Evaluate the need for relief on extended jobs to avoid excessive fatigue. 6. Fall protection equipment will be made available and used per OSHA standards by all employees who do field work. Discipline/Protective Eyewear/Maintenance A. Safety Violation Discipline: (See Disciplinary Action policy in this handbook.) B. Protective Eyewear: 1. Non-prescription safety glasses and safety eye wear that fit over prescription glasses will be furnished by FESCO. Replacement will be at the District Manager’s or Safety Coordinator’s discretion. 2. If you choose not to wear safety eye protection over your prescription glasses you will be required to provide and wear safety prescription glasses with side shields. If your safety prescription glasses are damaged or destroyed on the job, a request for reimbursement may be submitted to your manager for review. C. Equipment Maintenance: 1. A color-coded flagging system will be used for maintenance and repairs. a. Yellow flagging means a component needs maintenance but may be safely operated. b. Red flagging indicates that the component needs repair and is inoperable. c. The maintenance book in the unit will be utilized to document repairs.

86 2. Each district office will have at least an annual major inspection of each piece of equipment to insure that it is adequately maintained. Vehicle Safety: Company Vehicle Operating Policy Policy The purpose of this policy is to ensure the safety of those individuals who drive company vehicles and to provide guidance on the proper use of company fleet vehicles. This policy follows procedures as documented in Section 5 Motor Vehicle Operations and SP-17.42 Journey Management Program in the HSE Manual. Vehicle accidents are costly to our company, but more importantly, they may result in injury to you or others. It is the driver’s responsibility to operate the vehicle in a safe manner and to drive defensively to prevent injuries and property damage. As such, employers endorses all applicable state motor vehicle regulations relating to driver responsibility. The employer expects each driver to drive in a safe and courteous manner pursuant to the following safety rules. The attitude you take when behind the wheel is the single most important factor in driving safely. The Safety Committee is responsible for general administration of this policy. Safety Committee: The Safety Committee is comprised of Upper Management, a Safety representative, DOT representative and a Human Resources representative. The committee is responsible for:  Reviewing accidents and employer’s overall driver safety record to determine if there should be changes in policy or procedure; or if other corrective action (such as training, equipment changes, etc.), should be implemented to

87 enhance the safe operation of company vehicles, and/or personal vehicles on company business.  Reviewing driving records of individual employees and making recommendations to Executive Management when driving privileges should be suspended or revoked.  Reviewing all other issues that arise with respect to compliance with this policy. Driver Guidelines and Reporting Requirements 1. Company vehicles are to be driven by authorized employees only, except in case of repair testing by a mechanic. 2. Any employee who has a driver’s license revoked or suspended shall immediately notify the District Manager or Safety Committee by 9 a.m. central time the next business day, and immediately discontinue operation of the company vehicle. Failure to do so may result in disciplinary action, up to and including termination of employment. 3. All accidents in company vehicles, regardless of severity, must be reported to the police and to District Manager or Safety Committee. Accidents are to be reported immediately (from the scene, during the same day, or as soon as practicable if immediate or same day reporting is not possible). Accidents in personal vehicles while on company business* must follow these same accident procedures. Accidents involving the employee’s personal injury must be reported to Human Resources for Worker’s Compensation purposes. Failing to stop after an accident and/or failure to report an accident may result in disciplinary action, up to and including termination of employment.

88 4. Drivers must report all ticket violations received during the operation of a company vehicle, or while driving a personal vehicle, within 24 hours to the District Managers or Safety Committee. Failure to do so may result in disciplinary action, up to and including termination of employment. 5. Motor Vehicle Records will be obtained on all drivers prior to employment and no less than every six months. A driving record that fails to meet the criteria stated in this policy, or is considered to be in violation of the intent of this policy by the Safety Committee, will result in a loss of the privilege of driving a company vehicle and possible termination. Driver Criteria & Administration Employees must have a valid and current Driver’s license to operate a company vehicle, or a personal vehicle with current auto insurance while on company business. Employees are expected to drive in a safe and responsible manner and to maintain a good driving record. The Safety Committee is responsible for reviewing records, including accidents, moving violations, etc., to determine if an employee’s driving record indicates a pattern of unsafe or irresponsible driving, and to make a recommendation to Executive Management for suspension or revocation of driving privileges. Criteria that may indicate an unacceptable record and termination of employment includes, but is not limited to:  Two or more moving violations* in a year  Two or more chargeable accidents within a year. Chargeable means that the driver is determined to be the primary cause of the accident through speeding, inattention, etc. Contributing factors, such as weather or mechanical problems, will be taken into consideration.  Any combination of accidents and/or moving violations.

89 * Violations include any ticket, charge, or other law enforcement proceeding relating to these, as well as independent evidence of violations deemed relevant by the Safety or DOT department. Driver Safety Rules 1. The company vehicle will be used exclusively for company business and traveling to/from work only. In case of emergency, company vehicles may be used for non-business related purposes. 2. No non-FESCO personnel or unauthorized personnel are allowed to drive or be a passenger in company vehicles. This includes, but not limited to, spouses, children, family members, etc. 3. Driving on company business and/or driving a company vehicle while under the influence of intoxicants and other drugs (which could impair driving ability) is forbidden and is sufficient cause for discipline, up to and including termination of employment. 4. No driver shall operate a company vehicle when his/her ability to do so safely has been impaired by illness, fatigue, injury, or prescription medication. 5. All drivers and passengers operating or riding in a company vehicle must wear seat belts, even if air bags are available. A company vehicle will not move until everyone has engaged their seatbelt. 6. CELL PHONE USAGE  Keep cell phone and blue tooth off while the vehicle is moving.  Allow voicemail to handle your calls and return them when safe.

90  If you need to place or receive a call, pull off the road to a safe location and stop the vehicle before using you phone.  Ask a passenger to make or take the call.  Inform regular callers of the best time to reach you based upon your driving schedule.  Under no circumstances is texting while driving allowed. 7. Drivers are responsible for the security of company vehicles assigned to them. The vehicle engine must be shut off, ignition keys removed, and vehicle doors locked whenever the vehicle is left unattended. 8. Driving should be done only in daylight hours rather than after dark whenever possible. Any driving between 10:00 PM and 5:00 AM will require special permission from a Manager. Remember to reduce speed at night. Be aware of the potential for wildlife to be on the road, especially when driving at dusk or dawn. 9. Head lights shall be used 2 hours before sunset and until 2 hours after sunrise, or during inclement weather or at any time when a distance of 500 feet ahead of the vehicle cannot be clearly seen. 10. Spacing distance on dirt roads should increase to allow dust to settle for better visibility and increase braking distance. 11. All State and Local Laws must be obeyed. Defensive Driving Guidelines  Drivers are required to maintain a safe following distance at all times. Drivers should keep a three second interval between their vehicle and the vehicle immediately ahead.

91 During slippery road conditions, the following distance should be increased to at least four seconds.  Drivers must yield the right of way at all traffic control signals and signs requiring them to do so. Drivers should also be prepared to yield for safety’s sake at any time. Pedestrians and bicycles in the roadway always have the right of way.  Drivers must honor posted speed limits. In adverse driving conditions, reduce speed to a safe operating speed that is consistent with the conditions of the road, weather, lighting, and volume of traffic. Tires can hydroplane on wet pavement at speeds as low as 40 mph.  Radar Detectors are strictly prohibited in company Vehicles. In addition, per FESCO policy, maximum speed limitations are as follows; except where posted limits are lower: 1. Empty and non-towing vehicles: A. Cars – Max 70 MPH. B. T, TS, and TSC Trucks – Max 70 MPH. C. Dually Trucks – F-450 or F-550 – Max 70 MPH (even with winches). 2. T and TS trucks loaded with manifolds, flow line, 55 gallon drums, etc. – Max 70 MPH. 3. Towing speed for all trailers – Max 70 MPH (maximum towing speed under favorable driving conditions). 4. Larger vehicles (Wireline Trucks, Mast Trucks, Crane Trucks, Winch Trucks) – Max 70 MPH. 5. Cranes – 60 Ton and Greater – Max 55 MPH.

92  Turn signals must be used to show where you are heading; while going into traffic and before every turn or lane change.  When passing or changing lanes, view the entire vehicle in your rear view mirror before pulling back into that lane.  Be alert of other vehicles, pedestrians, and bicyclists when approaching intersections. Never speed through an intersection on a caution light. When the traffic light turns green, look both ways twice for oncoming traffic before proceeding.  When waiting to make left turns, keep your wheels facing straight ahead. If rear ended, you will not be pushed into the lane of oncoming traffic.  When stopping behind another vehicle, leave enough space so you can see the rear wheels of the car in front. This allows room to go around the vehicle if necessary, and may prevent you from being pushed into the car in front of you if you are rear-ended.  Avoid backing where possible, but when necessary, keep the distance traveled to a minimum and be particularly careful. *Check behind your vehicle before backing. Use a spotter when possible. *Back to the driver’s side. Do not back around a corner or into an area of no visibility. Accident Procedures 1. In an attempt to minimize the results of an accident, the driver must prevent further damages or injuries and obtain all pertinent information and report it accurately.

93  Call for medical aid if necessary.  Call the police. All accidents, regardless of severity, must be reported to the police. If the driver cannot get to a phone, he should write a note giving location to a reliable appearing motorist and ask him to notify the police.  Record names and addresses of driver, witnesses, and occupants of the other vehicles and any medical personnel who may arrive at the scene.  Complete the form located in the Vehicle Accident Packet. Pertinent information to obtain includes: license number of other drivers; insurance company names and policy numbers of other vehicles; make, model, and year of other vehicles; date and time of accident; and overall road and weather conditions.  Take pictures of all vehicles with your cell phone. 2. Do not discuss the accident with anyone at the scene except the police. Do not accept any responsibility for the accident. Don’t argue with anyone. 3. Provide the other party with your name, address, driver’s license number, and insurance information. 4. Immediately report the accident to the District Manager or Safety Committee. Provide a copy of the accident report and/or your written description of the accident to the Safety Department ASAP. 5. There will be a formal accident review conducted on each accident to determine cause and how the accident could have been prevented.

94 SPEEDING DISCIPLINARY ACTIONS The following assessments will be implemented for any employee who is caught speeding by law enforcement, FESCO’s vehicle tracking system or observed by another FESCO employee: 1. Employee will be issued written warning when exceeding FESCO’s speed limits or legal speed limits. 2. If caught by vehicle tracking equipment and not logged in, provided the tracking equipment monitor is working properly, the employee will be assessed $50.00. 3. Employees caught exceeding FESCO’s speed limits (see above) by 5 mph, or more will be assessed $50.00 plus $10.00 for each mph over the FESCO’s speed limit. 4. Any employee driving 80 mph or over will be subject to termination pending review by Supervisor and Alice Management. 5. After two assessments, the employee will be terminated. 6. Passengers in a vehicle in which the driver is violating this policy will be subject to the same assessments as the driver to include termination if the passenger does not take the initiative to tell the driver that he/she is exceeding FESCO’s speed limit and to slow down. It is important that employees understand that FESCO’s speed limits (see above) are usually less than what is posted on highways. Any assessments will be docked from expense allowance, job performance bonuses, commissions or paycheck in that order depending on what the employees is eligible for. Rev. 5/14

95 DRUG POLICY Purpose Employee drug use can have an adverse impact on safety in the work place. To help assure a safe, productive and efficient work environment, FESCO is committed to a drug-free work place. For these reasons, compliance with this policy by all employees of FESCO, Ltd. and its subsidiaries, including consent to randomly, unannounced drug tests and searches, is a condition of employment and violations of this policy will be grounds for immediate dismissal. Employees will be terminated for violation of this policy. Rehire will be determined by: 1) FESCO’s needs, 2) Completion of a Substance Abuse Professional (SAP) evaluation and treatment plan, 3) Follow-up drug and/or alcohol testing at the direction of the (SAP). All costs of the SAP and follow-up drug testing will be the employee’s responsibility. Employees are required to advise their supervisor as to when they are using any prescription or over-the-counter drug which contains instructions, restrictions or warnings indicating that use of the drug may cause them to become impaired from safely performing their job duties. Employees are not required to disclose identity of the drug or reason for taking the prescription or over-the-counter medication. However, these medications must be kept in their original containers (no pill boxes). Employees are strictly prohibited from reporting for work or working under the influence of a prohibited drug. All employees are responsible for reading and understanding the “Anti-Drug Plans” on file at each office.

96 ALCOHOL POLICY The use of alcohol or alcohol-containing products is prohibited on all FESCO, Ltd. and its subsidiaries’ properties and in vehicles, whether on or off duty. Alcoholic beverages are also prohibited on any and all locations and well sites where FESCO is conducting business or testing. All employees of FESCO, Ltd. and its subsidiaries, regardless of job duties, are covered by this policy and are subject to random, unannounced tests to insure compliance. The first time an employee is found in violation of this policy, he/she will be required to sign a written warning that if found in violation a second time, they will be terminated. If the first violation involves confirmed “use” of alcohol, the employee will be transported home and not allowed to return to work for 24 hours. If the second violation involves confirmed “use”, the employee will be terminated and transported home. Any employee involved in an “on the job” accident while under the influence of alcohol will be subject to immediate termination. Rehired employees will be determined by: (1) FESCO policy, (2) Completion of a Substance Abuse Professional (SAP) evaluation and treatment plan, (3) Department of Transportation and Department of Public Safety laws and regulations, and (4) our current insurance carrier’s requirements. The following rehire guidelines will apply: 1. If an employee is terminated for an alcohol content of 0.02% or more and was involved in (1) a motor vehicle accident, or (2) damaging property that belongs to FESCO or our customer, or damaging public or private equipment and/or property or (3) injuring himself or others while conducting company business, then he/she is not eligible for rehire. 2. If an employee is terminated for a second violation of FESCO’s

96 0.02% alcohol policy, he/she is eligible for rehire after 12 months. 3. Any employee terminated for the CDL 0.04% alcohol violation or a final DWI (CDL or non-CDL) conviction may be eligible for rehire after 12 months from the date of termination if they are insurable. All employees are responsible for reading and understanding the “Anti-Alcohol Plans” on file at each office. Any employee covered under this policy that is arrested for or charged with a DWI or DUI must notify their supervisor about the incident on the next business day after the incident as required by Department of Transportation regulations. Any employee who is arrested for or charged with a DWI or DUI and whose job description requires they drive a company vehicle, will be immediately terminated. If full adjudication of the charge results in a “no conviction,” the employee can reapply with no guarantee of rehire. Factors that will affect the possibility of rehire are staffing needs at the time of reapplying, the overall job performance prior to termination and permission from Alice Management. Employees who are required to drive company vehicles as part of their normal job duties need to understand that having a valid license is a requirement to work for FESCO. Also, FESCO’s Insurance will not insure anyone who has been convicted of a DWI or DUI in the last five years. Employees are strongly advised to keep this policy in mind if and when they decide to consume alcohol. Rev. 10/15

98 WORKPLACE VIOLENCE FESCO is concerned about the increased violence in society that has filtered into the workplace and has taken steps to help prevent incidents of violence from occurring at FESCO. It is the policy of FESCO to expressly prohibit any acts or threats of violence by any FESCO employee or former employee against any other employee in or about FESCO’s facilities or elsewhere at any time. FESCO will not condone any acts or threats of violence against FESCO’s employees, customers or visitors on FESCO’s premises at any time or while they are engaged in business with or on behalf of FESCO, on or off FESCO’s premises. In keeping with the spirit and intent of this policy and to ensure FESCO’s objectives in this regard are attained, FESCO is committed to the following: 1. To provide a safe work environment in accordance with FESCO’s objectives. 2. To take prompt remedial action, up to and including immediate termination, against any employee who engages in any threatening behavior or acts of violence or who uses any obscene, abusive, or threatening language or gestures. 3. To take appropriate action when dealing with customers, former employees or visitors to FESCO’s facilities who engage in such behavior. Such action may include notifying the police or other law enforcement personnel and filing malicious persecution claims against violators of this policy to the maximum extent of the law. 4. To prohibit employees, former employees, customers or visitors from bringing unauthorized firearms or other weapons onto FESCO’s premises.

99 In furtherance of this policy, employees have a duty to warn their supervisors or human resource representatives of any suspicious workplace activity or situations or incidents that they observe or that they are aware of that involve other employees, former employees, customers or visitors that appear problematic. This includes, for example, threats or acts of violence, aggressive behavior, offensive acts, threatening or offensive comments or remarks, and the like. Employee reports made pursuant to this policy will be held in confidence to the maximum possible extent. FESCO will not condone any form of retaliation against any employee for making a report under this policy. BUMP GATE OPERATION Whenever it is necessary to negotiate a bump gate, all employees will always utilize the regular side gate. In situations where side gates have not been provided, the bump gate will be opened by hand and held securely by whatever means available while the vehicle is driven through. Violators of this policy will be subject to the “Disciplinary Action” in this handbook. Some companies we work for have additional rules regarding bump gate usage. Become familiar with these rules.