SECTION-1 INTRODUCTION

1.1. WELCOME MESSAGE

I am pleased to present to you the 2nd edition of ADC Employee Manual

(ADC EM). It is an employee’s guideline which contains statements of
Company policy. The ADC EM explains the rules, which organize and
control the relationships between the Company and its employees.

The ADC EM is applicable to all employees, but excludes daily hires,

summer students, cooperative programs students, contractors' staff,
consultants of independent contracts, loaned employees and SLB/RMG
employees.

This Manual will increase understanding of Company intent, eliminate

the need for individual decisions on Company-wide matters, and assure
greater uniformity of administration throughout the Company and it
should answer any questions on employment conditions. Failing this,
any questions should be directed to the employee’s immediate
supervisor who will consult with the Human Resources Department if
necessary.

From time to time, the ADC EM will be updated to reflect changes in

current policy or document new policy. These changes and additions will
be communicated to employees by the Human Resources Department.

Saad A. Al-Saab
Managing Director - Administration

2nd Edition Page 1 of 69 ADC Employee Manual-2011

1.2. COMPANY BACKGROUND/PROFILE

Arabian Drilling Company is a joint venture between the Industrialization

and Energy Services Company (TAQA) and Services Petroliers
Schlumberger (SPS) an international Company specialized in Petroleum
services. The company has operated since April 1964, drilling oil and
gas wells for Saudi Aramco and Al-Khafji Joint Operations in the
Kingdom. Its offices are located in AlKhobar, Dhahran and Khafji.

ADC owns and operates some 18 drilling rigs, on land and offshore.
ADC today has 1600 employees from different nationalities (over 30
countries), 65% are Saudi Nationals.

ADC is committed to be a leader in the drilling contracting business with

focus on service quality delivery. It is the company’s firm conviction to
achieve this objective. An integral part of the company culture must be
an absolute commitment to the safety and health of all employees and
third parties involved in its operations, and to the optimum protection of
the environment in which its operations are conducted.

As a service company, our primary consideration must always be our

clients, and our primary objective, their satisfaction. We must strive to
provide our clients with the highest possible level of service and support.
Our success in achieving this is measured by our client’s perception of
not only the technical execution of jobs, but also, our overall response in
terms of readiness, communication, safety and service attitude.

ADC believes in recruiting high quality personnel and develops its

employees through extensive training. Excellent qualifications,
motivation, creativity, responsibility, initiative and respect for others are
key words describing our employees. All employees have an equal
opportunity for promotion based on their qualifications, performance,
attitude and potential. It is the Company’s policy to promote from within
the organization based on merit.

2nd Edition Page 2 of 69 ADC Employee Manual-2011

 SECTION-2 POLICIES

2.1. QUALITY, HEALTH, SAFETY & ENVIRONMENT

(QHSE)

The long-term business success of ADC depends on our ability to

continuously improve the quality of our services while protecting people
and the environment. Emphasis must be placed on ensuring human
health, operational safety, environmental protection, quality
enhancement and community goodwill. This commitment is in the best
interests of our customers, our employees and contractors, our
shareholders and the communities in which we live and work.

ADC requires the active commitment to and accountability for, QHSE

from all employees and contractors. Line management has a leadership
role in the communication and implementation, and ensuring compliance
with, QHSE policies and standards. We are committed to:

a) Protect, and strive for improvement of, the health, safety and
security of our employees at all times;
b) Eliminate Quality non-conformances and HSE accidents;
c) Meet specified customer requirements and ensure continuous
customer satisfaction through quality service delivery;
d) Set Quality & HSE performance objectives, measure results,
assess and continually improve processes, services and product
quality, through the use of an effective management system;
e) Plan for, respond to and recover from any emergency, crisis and
business disruption;
f) Minimize our impact on the environment through pollution
prevention, reduction of natural resource consumption, emissions,
and the reduction and recycling of waste;
g) Apply our technical skills to all HSE aspects in the design and
engineering of our services;
h) Communicate openly with stakeholders and ensure an
understanding of our QHSE policies, standards, programs and
performance. Reward outstanding QHSE performance;
i) Improve our performance on issues relevant to our shareholders
that are of global concern and on which we can have an impact,

2nd Edition Page 3 of 69 ADC Employee Manual-2011

 and share with them our knowledge of successful QHSE programs
and initiatives.

The commitments listed are in addition to our basic obligation to comply

with ADC standards, as well as all applicable laws and regulations where
we operate. This is critical to our business success because it allows us
to systematically minimize all losses and adds value for our
shareholders.

A strong and visible Quality, Health, Safety & Environment (QHSE)

policy is at the heart of the ADC business and life. All employees must
actively involve themselves in its practice in order to maintain our
business and market leadership and to ensure that Health, Safety and
Environmental considerations remain a priority for all.

In order to do so, Employees are, in particular, not only expected to

comply with all applicable Company, Client and local standards and
procedures, but also contribute to the continuous improvement of all
processes through individual creativity and team participation. This
includes:

a) Assuming personal responsibility for one’s health.

b) Participating actively in developing a safe working culture and in
the risk identification and reduction process.
c) Contributing personally to maintaining and promoting a clean
environment.

Working safely and protecting the environment is a condition of

employment. Employees will not commit, condone or knowingly be party
to an unsafe act or violation of the company’s Quality Health Safety and
Environmental (QHSE) policies. The company is committed to avoiding
accidents and the failure to follow safety and operating regulations may
result in dismissal. Personnel working on rigs shall wear protective
equipment in compliance with applicable safety regulations. It is also the
responsibility of any employee working in a supervisory capacity to do
everything practicable to reduce the risk exposure of their employees
and to ensure that all persons under their supervision know and follow
the safety rules. The ADC Safety Motto is:
“No job is so urgent or so important that we cannot take the time
required to do it safely”.

2nd Edition Page 4 of 69 ADC Employee Manual-2011

A QHSE manual in English/Arabic has been produced by ADC and will
be given to the new employee. All employees are expected to abide by
the rules and regulations in the manual at all times.

Driving Policy

Employees are not allowed to take their personal vehicles to the rig site.
ADC provides transportation for to all employees to and from the rigs by
designated vehicles/drivers for their safety.

Any Employee who drives ADC Vehicle must abide by the QHSE Driving
Policy and ADC Journey Management Standard, in particular to:

Comply with local traffic rules.

Comply with the defined driving training and certification
requirements.
Ensure that all vehicle occupants are wearing seat belt.
Practice defensive driving continuously.
Search actively for ways to improve your driving performance, in
particular through
the use of driving improvement monitors.

Personal Protective Equipment (PPE)

Employees shall wear required company provided PPE in places where

the use of PPE is mandatory or recommended. Those employees whose
jobs require PPE will be provided with the following:

Coveralls
Steel toe safety boots
Work gloves
Safety hard hat
Safety glasses with side shields
Ear protection

Personnel working on Rigs must have valid H2S certificates.

Personnel working offshore must have current marine safety and fire
fighting certificates.

2nd Edition Page 5 of 69 ADC Employee Manual-2011

Environmental Policy

It is ADC’s policy to conduct its business in a manner that assures

optimum protection of the environment. In addition to careful compliance
with the relevant laws and regulations, efficient use of natural resources
and waste reduction are keys to achieving this objective.
This policy commits us to provide regular training to all employees,
improve technology and enlist the co-operation of our suppliers,
customers and neighboring communities to build a better environmental.

QHSE Compliance

Compliance with QHSE policies is a condition of employment. Violation

of QHSE Policies will attract disciplinary measures, including, at the
discretion of the company, possible termination of employment.

2.2. MOBILITY

The essentially mobile character of drilling operations excludes any

possibility of a permanent assignment to a given location. For this
reason, all employees must accept:

- to be transferred at any time from one assignment to

another;
- to work in any place where the company may exercise its
activities;
- to be transferred from one location to another location within
or outside the Kingdom of Saudi Arabia.

2.3. COUNTRY AND POINT OF ORIGIN

National Employees:
The point of hire is the ADC Human Resources department located in
Dhahran, Kingdom of Saudi Arabia.

2nd Edition Page 6 of 69 ADC Employee Manual-2011

Expatriate Employees:
The country of origin (Nationality) is determined by the employee’s
passport, and point of origin is normally the place of residence at the
time of hire. The country and point of origin, as agreed between the
employee and the company are stated in the employment agreement
letter and can only be changed with written approval from the Human
Resources Manager.

2.4. SENIORITY

Seniority is the length of continuous employment with ADC. As a rule

ADC does not re-hire an employee who has resigned or has been
terminated with cause by the Company. However, if the situation does
arise the employee seniority date will not be bridged in case of re-
employment.

The employment date reflects the latest date of hire with the company.

2.5. CONFIDENTIALITY

All employees are subject to the rules of professional secrecy.

Employees are not authorized to communicate any information or
documentation related to technology, operations, customers, and
business or otherwise, of the company to a third party. Employees shall
hand over all documents or other forms of information at the end of their
employment to their supervisors/ managers will confirm it to Human
Resources Department on clearance paper.

2.6. CONFLICT OF INTEREST

No employee shall undertake any action that conflicts with the interests
of the company. This includes:

- Any personal or business interest with any competitor, or any

organization that does business with the company.
- Any personal gain, monetary or through services, that can be
obtained by the position of the employee in the company.
Additionally, no gifts, favors or promotional inducements can
be accepted without the prior permission of the employee’s

2nd Edition Page 7 of 69 ADC Employee Manual-2011

 immediate supervisor. At any time, employee must not
accept cash or gifts of more than nominal value, such as
loans, excessive entertainment or other substantial favors,
from any outside concern which does or is seeking to do
business with the Company.
- Using the company’s assets or information for the benefit of
a third party, or misusing property, funds or information
belonging to the company.
- To willfully misrepresent any fact or circumstance concerning
the interest of the company. This includes falsifying
documents, reports or accounts of the company.

Each employee is expected to conduct his personal and business affairs

in such a manner that there is no conflict with the interests of the
company. The failure of a supervisor to enforce this rule will also be
considered as conflict of interest.

2.7. PERSONAL APPEARANCE

All personnel aboard ADC operated rigs and offices are expected to
conform to the following standards of personal appearance.

A. The company will provide each rig based employee two pairs
of ADC full sleeve coveralls and one pair of safety boots
when they are hired. Replacement coveralls and boots will
be supplied as an exchange for the old, worn out items.
Hand gloves will be supplied as the job requires. All rig
personnel are required to wear ADC coveralls while on tour.

B. Dirty clothes, outdoor work boots or shoes will not be worn in

the quarters mess halls and recreation rooms, except in
emergencies.

C. Office staff is expected to wear Saudi dress or smart office

dress.

Under no circumstances (except in emergencies) will it be acceptable for

employees to wear loose or ragged clothing, or to have a poor personal
appearance.

2nd Edition Page 8 of 69 ADC Employee Manual-2011

2.8. MEDICAL EXAMINATIONS

All ADC new hires must obtain a fitness certificate as a condition of

Employment as detailed on ADC Medical Check Forms A & B.

All ADC employees must go through a regular medical examination

every 3 years at a company appointed medical center. The following
ADC medical check forms will be used:

a) Supervisors and all employees over 40 years on ADC health check

form “A”.
b) Junior employees below 40 years on ADC health check form “B”.

Prior to resuming work after a serious injury or a long illness, the

employee is required to go for a medical check and obtain a fitness
certificate.

All ADC employees have to have the following vaccinations:

- Tetanus
- Hepatitis “B”
- Any other as specified by company doctors according to
local requirements.

All medical information will be treated confidentially and will be kept in

employee’s personnel files. If any employee need a copy of his medical
reports, a written application to be addressed to the HR Manager.

All expenses related to the medical check up will be borne by the

company.

2.9. COMMUNICATIONS & RELATIONS POLICY

The company wishes to foster a climate of open and honest

communications, in which employees will be committed to give their
best, while understanding their own interests. Similarly, it is important
that grievances and disputes are avoided as far as possible. For this
reason a grievance procedure has been developed to ensure that

2nd Edition Page 9 of 69 ADC Employee Manual-2011

genuine complaints are handled in a reasonable, rapid and constructive
manner.

2.10. CODE OF CONDUCT

Each employee is required to adhere to the following:

To attend work punctually.

Dress appropriately during working hours.
To perform assigned duties in a safe and conscientious manner. If
unsafe practices are observed employees are empowered to
STOP unsafe practice immediately; if ignored, it is their
responsibility to notify the attention of the Management.
Make an effort to maintain the Company assets in good condition,
to maintain order in the working area, and to be economical in the
use of consumables.
Immediately inform the HR Department of any changes of address
or family status.

2nd Edition Page 10 of 69 ADC Employee Manual-2011

 SECTION-3 EMPLOYMENT & PLACEMENT

3.1. INTRODUCTION

It is the Company’s policy to recruit employees in accordance with its

established manpower needs, by filling vacant positions with the most
suitable candidates. In the selection of such candidates, the Company
will be guided by the requirements of the job and the candidates'
qualifications, taking into account certain factors such as education,
training, experience, skills and other characteristics as determined by the
Company.

The Company gives priority in employment to Saudi nationals.

Recruitment of expatriate employees is determined by job requirements
and in case of non-availability of qualified Saudi candidates for filling the
vacancies.

All personnel employed by the Company, regardless of their country of

origin or citizenship, are governed by the applicable laws, regulations
and decrees of the Kingdom of Saudi Arabia, in addition to the
Company’s internal work rules and the provisions of their respective
individual employment agreements.

Approved requisition form must be forwarded to HR Department for new

hire.

3.2. RESPONSIBILITY

H R Department (Recruitment Section) is responsible for:

(A). Coordinating with Department Heads for the preparation and

compilation of the Company’s annual manpower needs (numbers and
specialties) from all departments in the Company.

(B). Ensuring due priority is given to the employment of Saudi nationals.

(C). Determining the best employment sources that satisfy the

Company's targets.

2nd Edition Page 11 of 69 ADC Employee Manual-2011

(D). Reviewing employment requisitions form to ensure compliance with
the approved manpower budget.

(E). Determining the availability of suitable candidates within the

Company to fill approved personnel requisitions through appropriate
employee placement. If such candidates are not available, then they will
be sought from outside.

(F) Coordinating with Recruitment Committee to conduct Interviews for

selected candidates.

3.3. PRIORITIES OF EMPLOYMENT

Priority will be given to filling vacancies from inside the Company. In

case it is not available, the Company places a high priority to its
Saudization plan.

3.4. STANDARDS OF EMPLOYMENT

3.4.1. Saudi:

1. National I.D. Card/Family Booklet. All Saudi job applicants must

have a valid Saudi National I.D. Card/Family Booklet
2. Meet the medical standards established by the Company.
3. Saudi Government Clearance. Before hiring Saudi staff in certain
jobs positions (e.g. Drivers), a clearance from appropriate
Government agencies is required.
4. The minimum hiring age shall be eighteen (18 H) Hijra Years.
5. The candidate must possess the required academic qualifications
and experience to carry out the job as specified in the Job
description.
6. Pass the interview / test process.
7. Latest GOSI print out to verify employees status with previous
employer.

2nd Edition Page 12 of 69 ADC Employee Manual-2011

3.4.2. Non Saudi:

1. The minimum hiring age shall be twenty one (21) Gregorian years.
2. The candidate must possess the required academic qualifications
(endorsed by the Saudi Embassy at the origin country) and
experience to carry out the job.
3. Pass the interview/ test process.
4. Meet the medical standards established by the Company
5. He should be of good conduct and discipline.
6. He should be allowed to work in the Kingdom.
7. If hired locally, the employee must have a written permission from
his previous employer, valid passport and valid resident permit and
work permit, and should obtain the government approval to
transfer his sponsorship.

3.4.3. Academic Standards

Candidates with recent graduate who do not meet experience

requirements defined in job descriptions must have minimum GPA's of 2
based on a 4.0 grading system.

Candidates who have at least three years of related work experience are
evaluated on their work experience and are not required to meet the
GPA standards.

Applicants must furnish the College Relations & Professional

Recruitment with the original or an authenticated copy of their college
degrees for verification purposes before being placed on the payroll.

3.5. COMPENSATION – NEW HIRES

New hires receive starting pay according to the established pay structure
for their job assignment. These guidelines provide guidelines for hiring
rates which attract qualified candidates.

Guidelines for Salary Offers:

a. Fresh Graduates will be paid according to the established pay

structure for Fresh Graduates based on their qualifications.

2nd Edition Page 13 of 69 ADC Employee Manual-2011

b. Minimum of the salary range is offered to candidates who meet the
minimum qualifications and experience required for the position as
specified in the job description.

c. Above minimum of the salary range is offered to candidates who

exceed the minimum qualifications and experience required for the
position

d. Above mid-point of the salary range is offered to outstanding

candidates whose qualifications substantially exceed the minimum
requirements of the job.

3.6. SERVICE DATE

Saudi
For Saudi employee the service date is the date he/she reports to duty.

Non- Saudi
For expatriate employees recruited from outside the Kingdom, service
date is the first working day after his arrival. For expatriate employees
who are hired locally in Saudi Arabia, the service date is the date on
which the employee reports for duty. In all cases employment date is the
date when employees reported on duty.

3.7. GOVERNMENT RELATIONS

It is impossible for anyone to enter Saudi Arabia without a visa. There is

no way to pick-up any kind of visa at the airport upon arrival.

Type of Visas available:

1. BUSINESS VISAS
A. Work visa
B. Work visit visa.
C. Commercial visit visa

2nd Edition Page 14 of 69 ADC Employee Manual-2011

 2. FAMILY VISAS
A. Permanent visa (subject to employment contract terms
and approval of Saudi Immigration Authorities).
B. Visit visa (Subject to ADC Management's Approval).

1. BUSINESS VISAS

A. Work Visa process:

Work visa available for workers of designated nationalities. It is

recommended for all ADC workers assigned to Saudi Arabia and are
generally for a mixture of nationalities except GCCs.

Work Visa Formalities:

ADC will normally send the following work visa documents to visa agent;

1) Original contract agreement attested by Chamber of Commerce

and Ministry of Foreign Affairs.
2) Original letter attested by Chamber of Commerce and Ministry of
Foreign Affairs address to Saudi Consulate, in country of origin.
3) Enjaz-authorization letter for employee or visa agent.
4) Copy of ADC Registration Certificate (CR).
5) Copy of work visa quota.
6) Air Ticket

ADC GRO (Government Relation Officer) will direct employee to the

authorized visa agent/s to help in processing the visa.

In the applicant country, the following formalities are required:

1) Visa application form. (Can be provided by the visa agent or

embassy official website)
2) Passport valid for at least 6 months and with two blank facing pages.
3) Education and Training certificates attested by the Ministry of
Foreign Affairs in employee country & Saudi Consulate.
4) 6 Passport photos colored (passport size).
5) Police clearance (required in few countries).
6) Medical check-up from a local hospital authorized by the Saudi
consulate.

2nd Edition Page 15 of 69 ADC Employee Manual-2011

 7) Experience service certificate minimum 2 years in drilling field if
required.
Work visa requirements may differ from one country to another.

Upon arrival in Saudi Arabia with a work visa:

GRO will obtain Saudi residency permit (Iqama)

- Employee should handover his passport to the GRO representative

to enable to arrange the work visa permit (Iqama) & Exit Re-Entry
visa if required.
- The GRO representative will refer the employee to a local hospital or
clinic for the medical check-up needed to process the Iqama.
- Ten color passport photos taken against a white background.

CAUTION :
o The new Iqama will take a minimum of 2 weeks to process.
o Residency permit (Iqama) is valid for one year.
o Exit & Re-Entry permits are needed to leave and return to
Saudi Arabia.
o Exit & Re-Entry permits will take 2 working days.
o Individual arrive in Saudi Arabia with visit visa will not require
Exit & Re-Entry visa.
o Exit Re-Entry has a validity of 3 months. Employees who hold
their passports/s will pay S.R.1,000.00 as penalty if they do not
use it before expiry date.

- Employees should make sure that their passports are valid and have
enough pages in their passport.
- Employees are not allowed to keep Iqama and passport together.
- Upon arrival from vacation employee must handover their passport to
GRO representative and collect their Iqama.
- GRO representative will make the arrangement to stamp Exit Re-
Entry in the passport and the passport will be kept under safe
custody of the GRO supervisor.
- At the time of departure the employee will handover his Iqama to
GRO representative and collect his passport with exit re-entry

2nd Edition Page 16 of 69 ADC Employee Manual-2011

B. Work Visit Visa

In order to process the work visit visa ADC GRO team requires the
followings,

1) Copy of the applicant/s valid passport.

2) Copy of proof valid residency, if the applicant resides outsides his
home country.
3) Job title (if he is service maintenance provider) with company name
and address.

The GRO will fill ON-LINE the work visit visa approval request form via
web site of MOFA (Ministry of Foreign Affairs). This form must be
approved by the Company and attested by Saudi Chamber of
Commerce (approval process from MOFA will take approx 3 working
days).

ADC-GRO will send the following document to obtain work visit

visa;

1) Work visit visa approval slip (Arabic version).

2) Copy of ADC registration certificate (CR).
3) Original Contract letter agreement attested by Chamber of
Commerce & Ministry of Foreign Affairs.
4) Air Ticket

In the applicant country, the following formalities are required:

1) Visa application form. (Can be provided by the visa agent or

embassy official website)
2) Passport valid for at least six months, with two blank facing pages.
3) Education & training certificate.
4) 4 Color photos taken against a white background passport size.
5) Experience service certificate minimum 2 years.

ADC-GRO will direct employee to the authorized visa agent/s to help him
in processing the visa.

2nd Edition Page 17 of 69 ADC Employee Manual-2011

Upon arrival in Saudi Arabia with a visit visa:

- Employees must handover their original passport to the GRO.

- The GRO team will take the original Passport and will provide a copy
of passport with company stamp to the employee.
- The GRO team will check and extend the visa if necessary before its
expiry date.

If employee holds his passport and visit visa has been expired, he
will be fined S.R 10,000 as penalty to Government as per Saudi
Regulations.

C. Commercial visit visa

This type of visa is only for Consultants, Managers and Suppliers visiting
the ADC office/s or field as requested by ADC.

In order to process the work visa ADC-GRO section needs the

followings,

1- Valid passport copy.

2- Copy of proof valid residency, if the applicant resides outsides his
home country.
3- Company name and address.

The GRO will fill ON-LINE the work visit visa approval request form via
web site of MOFA (Ministry of Foreign Affairs). This form must be
approved by the Company and attested by Saudi Chamber of
Commerce (approval process from MOFA will take approx 3 working
days).

ADC will send by courier the following Commercial visit visa documents;

1- Original electronic commercial visit visa attested & linked by

Chamber of commerce.
2- Original letter attested by Chamber of Commerce to Saudi
Consulate, in country of origin.
3- Copy of ADC registration certificate (CR).

2nd Edition Page 18 of 69 ADC Employee Manual-2011

In the applicant country need in addition

1. Visa application form. (Can be provided by the visa agent or

embassy official website)
2. Passport valid for at least six months, with two blank facing pages.
3. 4 Color photos taken against a white background.
4. Copy of the invitation letter received from ADC.

2. FAMILY VISAS

A. Family Visas (Permanent Visa)

Family permanent Visas will be processed only if the employee's marital

status in his employment contract is married to bring his Family
members (Wife, Children ONLY) in Saudi Arabia.

The following original documents are required to process Saudi visa for
the family (Needed to be submitted in home country):

1. Original passport & iqama of the employee.

2. Original Education certificate. (Diploma and above).
3. Original Marriage certificate.
4. Original Children’s birth certificates.
5. Copy of the passport of each family member.

Documents 1,2 and 3 above must be attested by government authority

and Saudi consulate in home county.

After receiving all the required certificates, GRO team will prepare the
required formalities (letter, visa application request form and official fees)
then apply for a family visa approval on behalf of employee.

Family visa approval takes approx 2 weeks to process.

2nd Edition Page 19 of 69 ADC Employee Manual-2011

To obtain the family visa the Saudi consulate in home country,
needs:

1. The family visa approval number yellow slip (obtained by ADC

GRO).
2. Medical check-ups for each family member at a local hospital
authorized by Saudi consulate.
3. Marriage certificate and children’s birth certificates, which must be
kept with you at all times.
4. Children’s vaccination records.

Employee to contact local visa agent to get the visa stamped by Saudi
consulate.

Upon arrival of the family in Saudi:

1. Contact the GRO team to apply for a family Iqama.

2. The GRO team will refer the family to a local hospital for the
medical check-ups to process the family Iqama.
3. Four color passport photos taken against a white background, for
each family member.
4. Children’s vaccination certificates.

The process for family Iqama will take approx five working days.

B. Family Visit Visa (subject to ADC Management Approval)

Family visit visas will be processed only if employee is on family status

(Office status or Rig status) approved by ADC to bring his Family (Wife,
Children, Mother, Father, Mother in law and father in law ONLY) in Saudi
Arabia.

The following documents copies are need to process Saudi family visit
visa.

1- Employee request letter.

2- Passport copies.

2nd Edition Page 20 of 69 ADC Employee Manual-2011

All expenses related to Family Visit Visa will be charged to employee’s
account.

The GRO will fill ON-LINE the work visit visa approval request form via
web site of MOFA (Ministry of Foreign Affairs). This form must be
approved by the Company and attested by Saudi Chamber of
Commerce (approval process from MOFA will take approx 3 working
days).

To obtain the family visit visa the Saudi consulate in home country,
needs:

1- Visa application form. (Can be provided by the visa agent or

embassy official website)
2- Copy via fax or email the family visit visa approval slip.
3- Marriage certificate and children’s birth certificates, which must
be kept with you at all times.
4- Children’s vaccination records.

Employee will be responsible to contact local visa agent to get the visa
stamped by Saudi consulate.

2nd Edition Page 21 of 69 ADC Employee Manual-2011

 SECTION-4 CONDITIONS OF EMPLOYMENT

4.1. WORK STATUS

Commuter status requires the employee to rotate from his point of origin,
or the equivalent, to the work location according to the defined rotation
schedule, usually 35/35, 56/28, 28/14, 14/7 (expressed in days), or as
otherwise defined for a particular location and/or position.

Employees on office status are entitled for annual vacation as stipulated

in employment contract after continues working for 11 months.

4.2. JOB CLASSIFICATION FOR RIG BASED PERSONNEL

Senior Staff Junior Staff

Rig Superintendent Derrickman
Assistant Rig Superintendent Floor man
Driller Roustabout
Assistant Driller Mechanic
Chief Mechanic Electrician
Chief Electrician / Electronic Siloman
Technician
Barge Captain/Barge Master/Rig Driver
Mover
Mud Engineer Welder
Medic Crane Operator
Radio Operator
Safety Officers
Store Keepers
Kill Pump Operators
Mate
Roustabout Pusher

4.3. PROBATION PERIOD

All employees are subject to (90) working days probation period starting
from the first day of employment. It will allow the company to determine
whether the employee suitable for employment or not, and for employee

2nd Edition Page 22 of 69 ADC Employee Manual-2011

to determine whether the company is suitable for him or not. Such
probation period shall not exceed ninety days, exclusive of all national
holidays, sick leaves and leave without pay. ADC shall have the right to
terminate the contract during this period.

4.4. WORKING HOURS

The working hours in ADC are as follows:

1. Office Employees
Head Office / Dhahran Base / Khafji Base:

Working hours : 07.00 - 12.00 hrs

Break : 12.00 – 12.30 hrs
Working hours : 12.30 – 16.00 hrs
Thursday & Friday : OFF

The employees taking break more than 30 minutes, with Manager

consent, are required to compensate equal to the extra time they
actual availed.
In any case the break should not be more than one hour.

2. Rig Employees
The normal working time for junior & senior employees is 8 hours
plus 4 hours over time as it is embedded in the individual
employment contract.

Junior Employees:
For Safety reasons, company discourages over time above 4
hours. However, in emergency cases at rig site leading to major
HSE issue, critical equipment breakdown and or rig shut down, the
only person authorized to grant permission for the over time is Rig
Superintendent.

Supervisors:
For employees from Grade 08 and above, additional over time
above 4 hours is not allowed.

2nd Edition Page 23 of 69 ADC Employee Manual-2011

3. Working hours during the holy month of Ramadan will be 6 hours
per day for Muslim employees only. Any extra worked hours will be
considered as over time

4.5. USE OF MESS HALLS AND RECREATION ROOMS AT

RIG CAMPS
a) Admission to the senior mess and recreation facilities will be
authorized only to the following categories of personnel:

Rig Superintendents : Assistant Rig Superintendent

Drillers : Assistant Drillers
Chief Mechanics : Chief Electricians
Mechanics Grade 3 : Electricians Grade 3
Barge Masters : Mud Engineers
Safety Officers : Medics
Radio Operators : Mate
Store Keepers : SDP/TDPs
Kill Pump Operators : Roustabout Pushers

b) Admission to the junior mess hall will be allowed for the following
categories of personnel:

Derrickmen : Floormen
Siloman : Roustabouts
Mechanics : Electricians
Welders : Dozer/Crane Operators
Drivers : Painters

Same Food Quality and Menu are provided to both senior and junior
mess halls.

4.6. USE OF MESS HALLS AT DHAHRAN BASE

The company provides free food for employees on Rig Status who are
eligible and stay in company accommodation/camp.
The company will charge S.R 15 per meal for non commuter supervisors
and above, S.R 10 for Non commuters lower than supervisor level for
dinning in Dhahran Base.
The company provides same food quality and food menu to both senior
and juniors.

2nd Edition Page 24 of 69 ADC Employee Manual-2011

 SECTION-5 TRAINING & CAREER DEVELOPMENT

Employees are the most valuable assets in our organization; the

success of the Company depends very much on the knowledge and
talent of employees to provide superior service.

The Company will support and encourage staff to make the best
possible use of their capabilities in contributing to the business.

5.1. PERFORMANCE APPRAISAL

The ADC philosophy of performance appraisal is a basic act of

management. The completion of the appraisal form is the recording
phase of the appraisal process, which allows open communication
between the employee and the supervisor with the objective of improving
performance and motivation.

There are five reasons why performance reviews are conducted:

A. To provide a formal means of two-way communication between a

supervisor and employee.

B. To provide a basis for employee development and performance

improvement which:
Capitalizes on strengths.
Identifies and formulates plans to improve development areas.

C. To determine promote and rank with peers.

D. To provide record for each employee of performance and related

discussions throughout their career.

E. To support salary and/or bonus recommendations.

Performance reviews meet the needs of employees and the company.

Employees need to know how well they are performing their job in
relation to what is expected from them. Employees also need to know
what their job performance means to their future and to reconcile their
expectations with opportunities available within the company.

2nd Edition Page 25 of 69 ADC Employee Manual-2011

The company looks at performance reviews as a way to differentiate
among employees. The company must know what salaries to pay, what
employees training needed are and who is contributing to company
goals. The company needs to know which employees are ready to
assume additional responsibilities and who may benefit by a different job
or transfer.

Managers are responsible to ensure that every employee receives a

formal job performance appraisal by his supervisor at least once per
year. The formal job performance appraisal form, a review of the
completed appraisal form by the reviewing manager and an “end of the
appraisal period” discussion with the employee should all be completed
in a professional manner. This discussion also includes the employee’s
plan for future development.

Performance appraisals and progress reviews and interviews are to be

conducted in a confidential manner. The original copy of the
performance appraisal is retained in the employee’s permanent file in the
HR department.

5.2. TRAINING COURSES

The company has established regular training programs to enable

employees to acquire the technical and practical knowledge necessary
both to perform their jobs and to advance throughout their career. The
training also helps an employee to keep abreast of new developments in
the field, thereby ensuring progress and competence.

Training courses, which are part of job training, are compulsory and
failure to complete them successfully may result in dismissal. Non-
compliance with company training course requirements may hinder
promotion possibilities and merit bonus awards.

Generally, training courses for field staff will be arranged for employees
only during their days off.

Training course days will not accrue days off, nor will a person be
entitled to overtime for these days.

2nd Edition Page 26 of 69 ADC Employee Manual-2011

Employees who attend training courses will be marked “C”, only for the
days of the course. Travel time for courses will be marked “C”.

Training will take place at the employee’s work location. Alternatively,

training can take place outside the work location such as training
courses in country of assignment or in other countries.

Training courses request should be approved by the appropriate

authority at proponent department, Training Department and the HR
Department. Training Courses out side Saudi should be approved by
MD-A and MD-T if the course not as per Training Matrix.

2nd Edition Page 27 of 69 ADC Employee Manual-2011

 SECTION-6 LEAVE

6.1. DAYS OFF (COMMUTERS)

Days off will be calculated as per the work schedule. Travel time to and
from rigs is counted as days off.

Every effort will be made to ensure that an employee is allowed to take

all his due days off after he has completed his tour of duty. Occasionally
this may not be possible, and in such cases the number of days off due
to the employee will normally be carried forward.

Crew Change
Employee who fail to report on time for his crew change without a valid
reason approved by Rig Manager/Department Head will be considered
as “NO SHOW” and it will lead to systematic termination of employment
without end of service benefits.

An employee absent from work for more than 10 days

continuously.
An employee absented himself from work for less than 10 days
continuously but more than 20 days in a contractual year.

Termination letter will be issued by HR Department without further notice

if the absence exceeds 10 days.

As per oilfield practices , during crew change day if reliever failed to

report to work, employee is not supposed to leave the rig site till the Rig
Management makes an arrangement for reliever. Breach of this
procedure will lead to employee termination without End of Service
Benefits.

6.2. ANNUAL LEAVE (OFFICE STAFF)

All Office employees will be eligible for an annual leave, the duration of
which depends of their grades as follows:
1. Saudi employees in managerial positions are eligible for 38
calendar days of vacation after 11 months of work.

2nd Edition Page 28 of 69 ADC Employee Manual-2011

 2. ADC expatriate managers are entitled to 14 days field break,
this is over and above 30 days vacation entitlement, after 11
months of work. Field break entitlement can not be carried
over the following year and no cash benefit will be allowed.
3. Employees below managerial positions are eligible for 30
calendar days of vacation, after 11 months of work.

Employees working on a rotation or commuter schedule annual leave is

included in their days off.

Office employees are expected to use their vacation entitlement in

the year accrued. Vacation will accrue up to a maximum of 70
calendar days; vacation will be capped and not accrue above this
maximum. Based on work requirement, the Managing Directors
must approve any exception to this rule.

Annual Vacation plan should be prepared for each Department in the

beginning of each calendar year. It must be approved by respective
Department Head. It is Department Head responsibility to ensure the
annual vacation plan must be followed and respected. Any request
during the year should be approved by Direct Supervisor with
Department Head.

Vacation request should be approved at least 14 days before the

individual proceeds for vacation.

Public holidays include Eid al-Fitter, Eid al-Adha and the Kingdom
national day. If any public holiday falls during the annual vacation, such
public holiday shall not be counted part of the annual leave balance of
the employee. Its Department manager responsibility to ensure bridging
vacation with public holiday should be managed properly to ensure
Company operations are carried out in professional manner.

The company grants air tickets to all expatriate employees proceeding

on Annual Leave to their hometown as per the terms of their contracts.

In the case of office employees on family status, the benefit extends to

the spouse and two dependent children up to the age of 22 years, but
can be extended to female dependent if unmarried. This assumes that
the family is residing at Saudi Arabia.

2nd Edition Page 29 of 69 ADC Employee Manual-2011

Vacation tickets will be issued to the employee, spouse and dependent
children (where applicable) using the most economical transportation
means available. In case of air travel, economy class (excursion) fares
will be issued; the travel ticket will be to the nearest point serviced by air.
Vacation travel tickets are non-refundable and a cash-in-lieu option is
not allowed.

A vacation travel entitlement will be assigned for the period beginning

January1 and ending December 31. The entitlement has to be used
within the allotted period. The vacation travel entitlement cannot be
carried over to the next calendar year. Outstanding entitlement at year
end is lost unless the Employee is on vacation during the change of the
calendar year. However, if delay in vacation due to ADC purposes
validity of entitlement can be extended on the discretion of H R Manager.

The vacation travel entitlement is computed on the basis of travel to the

employee’s city of origin (as stated in the employee’s information sheet),
it may be used for travel to alternate vacation destinations up to the cost
of entitlement.

6.2.1. FIELD BREAK

ADC expatriate managers are entitled to 14 days field break, this is over
and above 30 days vacation entitlement. Field break entitlement can not
be carried over to the following year and no cash benefit will be allowed.
ADC expatriate managers are also entitled to field break travel
allowance of S.R 2,500.00 per year. Married managers, their families
(spouse and dependents children) are entitled to field break allowance of
S.R 2,500.00 per family members except children under age of 12 years,
whose entitlement is S.R 1,250.00. Expatriate manager cannot claim
these allowances if he opts for air tickets or vice versa.
Expatriate managers who resign from ADC are not eligible for field break
entitlement.

2nd Edition Page 30 of 69 ADC Employee Manual-2011

6.3. LEAVE WITHOUT PAY
The company may grant leave without pay for a maximum period of (90)
days (continuous or distributed) during a period of three (3) years only if
such employee has provided convincing emergency justifications to the
Company management. It is left to the discretion of ADC Management to
decide if the emergency leave should be granted or not. No
remuneration is paid during this period.

End of service benefits remain in the employee’s’ account and are paid
only in the event of termination.

Employee must provide the appropriate supporting documents with his

application for leave without pay.

Leave without pay will not be counted in total service and will be
subtracted at the termination.

Employee must use the balance of his annual leave before he/she may
start an unpaid leave.

Employee's Department Manager should agree to the possibility of

keeping the employee's position vacant. Provided, a suitable temporary
alternative who can perform the employee's duties during his absence is
made available.

Approval Authorities for Leave without Pay:

The Company grants leave without pay according to the following

approval authorities:
From (1) to (7) days Department Manager & HR Manager.
From (8) days and above: Department Manager, HR Manager and
MD's.

6.4. SICK LEAVE

If an employee falls sick while on duty, he will be sent to the hospital for
evaluation and any necessary treatment. Sick leave will be granted as
per the doctor’s recommendation.

2nd Edition Page 31 of 69 ADC Employee Manual-2011

The maximum sick leave entitlement as per Saudi Arabian labour Law is
as follows:

The first month (30 days) with full pay.

The next 2 months (60 days) with 75% pay.
All subsequent days without pay

After completion 120 days in a contractual year of sick leave, and if the
employee is still unable to return for employment, the Company has the
option to terminate employment based on medical determination. The
employee will be entitled to severance benefits according to the rules
outlined in Saudi labour Law.

Employees are not entitled for a sick leave when they are on “days
off/vacation”.

6.5. AUTHORIZED EMERGENCY LEAVE

If an employee wishes to go on vacation/days off due to emergency

with/without vacation pay, he must make a request in writing to his
immediate supervisor. “Authorized Leave With/Without Pay” leave can
only be approved by the department head and H R manager, however it
is left to the discretion of H R manager to decide if the emergency leave
could be granted or not, with or without pay.

An employee will only be allowed to take emergency leave for maximum

10 days in one year in the event of an emergency.

Emergency Leave (for rig employees only)

To ensure proper handling for leave requests by rig based employees
during their “on days” on the rigs.

In the case of a requirement by ADC employees on the rig to depart due

to an emergency during their hitch, the following procedure is to be
followed for approval:

2nd Edition Page 32 of 69 ADC Employee Manual-2011

Emergency Leave for the following reasons
Death of a Direct Family Member. ( 3 days Paid Leave )
Serious Accident leading to hospitalization
of a Direct Family Member. ( 0 days Paid Leave )
Serious Life Threatening Illness leading to
hospitalization of a Direct Family Member.( 0 days Paid Leave )
Wife delivering a baby. ( 2 days Paid Leave )

Direct Family means: Wife, Son, Daughter, Father, Mother, Grandfather

and Grandmother.
Any Family Member different from the above requiring Emergency leave
shall be approved strictly by the Rig Manager.
a. The employee must submit a written application to his immediate
supervisor giving the details, reason and the number of days
required for the leave. The immediate supervisor will communicate
this to the Rig Superintendent. Emergency Leave shall not exceed
the above mentioned days. Any additional days required will be
treated as without pay after the approval of the Divisional
Manager.

b. The Rig Superintendent will review the request, obtain additional

information if required, and grant Emergency leave, if the above
criteria are met, after obtaining verbal approval from the Rig
Manager.

c. A formal PMF (Personnel Movement Form) with the original

‘Emergency Leave Request’ is to be sent to the Rig Manager who
will pass the PMF to the HR department. Note that in case of
extreme emergency the PMF can be sent after the person has
been granted Emergency leave.

d. The Rig Superintendent will arrange ADC transportation for the

employee following ADC procedures. In the unlikely event that
night driving is required, approval must be obtained as per the
Journey Management Policy.

e. The employee must provide the HR department with the official

documents ( e.g. hospital, police, death certificates, etc ) at the

2nd Edition Page 33 of 69 ADC Employee Manual-2011

 earliest possible but not later than the start of his next hitch,
justifying his Emergency leave. The employees failing to do so will
face disciplinary action which may lead to termination without End
of Service benefits.

f. In case the employee fails to return to the rig after the granted
leave, he wouldn’t be allowed to join the rig directly and shall visit
HR department for further assessment.

g. In addition to the above, any employee leaving the rig without

written authorization from the Rig Superintendent will automatically
lead to termination. The Rig Journey Management formalities must
be completed as per company policy for any employee leaving the
rig, with or without approval.

Air ticket provided by company during emergency leave for expatriate

employees will be charged to employee's personal account.

6.6. UNAUTHORIZED ABSENCE

Unauthorized leave is strictly forbidden. Any employee absent without

prior permission or valid reason will be subject to disciplinary action (may
effect the employee career for promotions and salary increase) up to and
including dismissal as per Saudi Labor Law.

This leave will be marked as “Z”

6.7. EXCEPTIONAL LEAVE

For all exceptional leave purposes support certificate is required.

- In the case of marriage, five (5) days leave will be granted subject to
production of Marriage certificate (copy).
- In the case of child born, two (2) days leave will be granted. It must be
taken with in 15 days after the delivery date subject to production of birth
certificate (copy).
- In the case of the death of direct relative (spouse, child, brother, sister,
mother or father, grand father or grand mother, grand children), three (3)
day’s leave will be granted subject to production of Death Certificate
(copy).
This leave will be marked as “E”.

2nd Edition Page 34 of 69 ADC Employee Manual-2011

6.8. HAJ LEAVE

Muslim employees will be entitled to a leave with full pay up to ten days
including Eid Al Adha in order to perform Haj once through the period of
his service if he has not performed Haj before. To be entitled to such
leave it is conditional that the employee should have completed at least
two consecutive years with the company and prior approval must be
obtained from employee’s Manager and MD-A. The company will have
the right to determine the number of workers who will be yearly entitled
to such vacation in accordance with the requirements of the work.

Vacation will not accrue during Haj leave. This leave will be marked as
“E”.

6.9. SCHOOL/COLLEGE EXAMINATIONS LEAVE

Company will grant the Saudi employee who purses his studies a leave
of absence with pay covering the actual number of days of the
examinations subject to the following conditions:

Prior Approval from employee’s Manager HR Manager and MD's

before he enrolled in the school.
The examination leave applies only to mid-year and end of year
examinations. Employee should submit Examinations schedules
with the leave request.
The examinations being taken are not repeat exams on failed
courses of previous year.
Employee should submit documents in support of continuing
studying in the school.

Company has the right to request employee to submit documents as

proof of having taken the examination.

Employee shall apply for the leave at least 30 days before the due date
with the above support documents.

2nd Edition Page 35 of 69 ADC Employee Manual-2011

6.10. HOLIDAYS OF EIDS AND PUBLIC OCCASIONS

Employee will have a holiday with full pay in the following Eids and
occasions:
A) Eid Al Fitr
Five (5) working days which shall include the day following the twenty
ninth (29) day of Ramadan according to calendar of Umm-Al-Qura.

B) Eid Al Adha
Six (6) working days which shall include the day of Waqfa on Arafat.

C) National Day
One (1) day for Saudi National day.

The Company will normally announce these holidays in advance.

Office Employees who are not entitled to overtime and are scheduled to
work a full day on public holidays or on official scheduled day off (min 6
hours) will receive a day in lieu of working.

Public holidays is counted as part of the days off of the field crew.

6.11. EXTRA-ORDINARY LEAVE

This leave will be given to employees who are due to go on days off but
are not able to do so, through no fault of theirs.

Employees who fall under the following categories will be eligible for
extra-ordinary leave:

If the rig transport arrives late in Dhahran resulting in the employee

missing the flight to his point of origin, he will be eligible to be
marked “E” until a day before he gets a suitable flight.

If the airline cancels the flight or similar (subject to submission of

paper document from airline).
Employees marked “E” in the time sheet will not accrue days off nor
will they be entitled to over time.

2nd Edition Page 36 of 69 ADC Employee Manual-2011

 Only the H R Manager, or his delegate, can sanction compassionate
or extraordinary leave.

6.12. SUMMARY OF VARIOUS TYPES OF LEAVE

S.No TYPE CODE

01 Accident A
02 Training Course C
03 Days Off / Annual Vacation D
04 Compassionate / Extra-ordinary & E
Emergency Leave
05 Marriage Leave M
06 Sick Leave S
07 Unauthorized Leave Z
08 Authorized Leave Without Pay W

2nd Edition Page 37 of 69 ADC Employee Manual-2011

 SECTION-7 SALARY, INCREMENTS AND
ALLOWANCES

The Compensation & Benefits objectives of ADC are designed to attract,

retain and motivate quality employees to provide the highest level of
customer services.

Compensation and benefits are determined by conducting compensation

surveys on a regular basis to enable the Company to maintain
knowledge of changes in local and International market conditions.

7.1. JOB DESCRIPTIONS, GRADES & BASIC SALARY

A job description/role profile is a formal document providing a record of

the contents and purpose of a job, which serves to distinguish it from
other jobs in the company. It summarizes the scope of the job, defines
its duties and responsibilities, key accountabilities, organizational
relationships, performance indicators and describes the skills and
qualification required for its satisfactory performance. Normally uniform
methodology is used for such job description.
A job description or role profile is prepared for each job, or a group of
positions or jobs of identical or comparable job content, designated
under a single job title. It is used as the basic document to evaluate jobs
for placement in appropriate grades according to the established salary
grade structure.

All employees are hired according to their occupational categories. The

employee will receive a wage fixed for his category position according to
the scale established by the company, unless differently agreed upon in
the employment agreement.

The company will determine job classifications and grade assignments

based on comparable positions in similar industries.

Within a salary range, the base salary of each employee may differ
based on individual performance and experience

2nd Edition Page 38 of 69 ADC Employee Manual-2011

7.1.1. Payment of Salary

Employees’ salary is paid in SAUDI Riyal into a designated bank

account at the end of each month as follows:

1. by local bank transfer or,

2. by wire transfer payable outside Saudi Arabia in US Dollars or the

employee’s home currency based on the prevailing official rates and
at the employee’s cost.

Employees’ salary comprising of the following:

Basic salary determined by the employee’s grade and assignment.

Housing Allowance (where applicable and approved)
Overtime (where applicable and approved).
Transportation Allowance (where applicable and approved)
Additional Allowance (where applicable and approved).

7.1.2. Salary Advance

It is Company policy that salary advances or loans will not be granted

under any circumstances. The Managing Directors must approve any
exception to this rule.

7.1.3. Pay slip

Pay slips will be sent once per month to the employee’s work location.

7.2. ALLOWANCE

OVERTIME

Office Status
The company expects the office staff to complete their assigned jobs on
time during their normal working hours. No overtime will be approved

2nd Edition Page 39 of 69 ADC Employee Manual-2011

over the normal working hours. Office staff working during the week
ends and holiday should be compensated with the time off.

Rig Status
Overtime is only applicable to employees working on Rig sites and on
rotation at Dhahran base and Khafji base (12 hours shift which is 8 hours
normal working and 4 hours overtime). For Safety reasons company
discourage over time above 4 hours. However, in emergency cases
leading to major HSE issue at rig site, critical equipment breakdown and
or rig shut down, the only person authorized to grant permission for the
over time is Rig Superintendent.

For employees from Grade 08 and above, additional over time above 4
hours will not be paid.
Overtime will be calculated according to the following formula:
One hour overtime = [(Basic salary / (30 days a month / 8 hours a day)) *
(1.5)]

HOUSING ALLOWANCE

(A) Rig Status

While on the rig, the company provides free food and lodging for the
employee. Over and above this for Saudi rig employees, 25% of their
monthly basic salary will be paid as House Rent Allowance (HRA) with
the monthly salary.

For the expatriate rig employee, the company does not provide housing
or accommodation in the employee’s country of residence.

(B) Office Status

All office employees (except those who are staying in company provided
accommodation) shall be paid 25% of their monthly basic salary as HRA.

(C) Managers and above

All Managers and above will be provided with a fully furnished company
house, a company maintained vehicle with free petrol water (not mineral
water), electricity and maintenance charges of the house will be borne
by the company. Alternatively, 25% of their monthly basic salary as HRA
will be given in lieu of a company house. The employee cannot claim
these allowances if he opts for a company house or vice versa.

2nd Edition Page 40 of 69 ADC Employee Manual-2011

(D) Method of Payment (for office status employees only)
Three months basic salary as HRA will be paid at the beginning of the
year in one installment. Employees who have not completed five (5)
years of service with ADC will be paid house rent on monthly basis.

The company will not be responsible for any associated costs such as
water, electricity or the maintenance of a house rented on leased by an
employee.

TRANSPORT ALLOWANCE
All office employees are entitled to a transport allowance to cover the
cost of travel from their residence to the office and back, based on their
salary as follows:

Saudi
From To Riyals
up to 3,500 500
3,501 6,000 600
6,001 13,000 700
and
13,001 above 1,000

Rig based personnel other than Saudi, are not eligible for any transport
allowance since the company provides all their transport within the
Kingdom.

Saudi rig based employees will be provided a monthly transport

allowance for S.R 200 for their travel to Dhahran Base and back.

THIRTEENTH MONTH PAY

Regular employees receive a thirteenth month payment once a year
(June) provided the company makes profit in that particular year. The
13th month basic salary should be applied from July to June. Employees
who resign are not eligible for 13th month salary. Employees less than 6
months seniority as at 30th June are not eligible; employees with more
than 6 months seniority and less than one year are eligible on prorata
basis.

2nd Edition Page 41 of 69 ADC Employee Manual-2011

VEHICLE
Depending on operational requirements, the company approves
supervisory personnel the use of a company vehicle at the location of
work. These vehicles remain the property of the company and may be
used for company needs if not in use by the employee.

Use of these vehicles will strictly comply with the policies set out in the
QHSE manual.

7.3. GENERAL PAY INCREASE

The company has the right to decide, if annual general salary increase is
required. This decision with the percentage of increase will be based on
the financial position and other factors. Employees who worked less than
11 Months with the company shall not be eligible for such increase.

If the company decides to make a general salary increase for all

employees, the changes will be reflected to the salary structure rather
than to the present grade of an employee.

7.4. MERIT INCREASE

Merit increase recommendation for the Rig crew (non PSTS) and the
Office staff will be reviewed only once a year (upon Management
decision for review of salaries).
Recommendation should be raised by the Rig/ Department Manager and
reviewed by the Operation Manager for field staff, recommendation from
department head with approval from the respective manager for other
staff. All recommendation should be sent to the HR Department.

7.5. PROMOTIONS

Promotions may occur at any time during the year based upon the
company’s requirement to fill a particular position. Whenever possible
the company promotes from within. Promotions are subject to
employees being compliant with the required training certification for
their present job.

2nd Edition Page 42 of 69 ADC Employee Manual-2011

Management based upon professional qualifications, ability,
performance, and potential takes decisions on promotions. Promotions
may include a trial period.
Promotion recommendation will be raised by the Rig / Department
Manager and reviewed by the Operation Manager for field staff,
recommendation from department head with approval from his manager
for other staff and send to the HR Dept. Once approved by the
Management, HR Dept will issue the promotion letter to the employee
and file a copy in his personnel file.

Temporary Assignment
The company may request an employee to work on another, higher
category job. In such cases, the employee who is temporarily assigned
for 5 days or more continuously will be compensated with 20%
coefficient for the days worked in the higher position. The coefficient will
apply to basic salary and overtime. This policy covers all ADC senior rig
employees form Assistant Driller to Assistant Rig Superintendent. If the
company requests an employee to work on another higher category job
for training purpose or evaluation before promotion, then this policy will
not apply.
Business requirements may require an employee to accept a lower job
classification. An employee who works temporarily in a job category
lower than his normal classification will be paid at the rate of his normal
job category unless and until it is acceptable to the employee after which
he is officially assigned to the lower job position.

7.6. PROGRESSIVE SALARY TRAINING SCHEME (PSTS)

ADC has a PSTS for rig employees in certain job positions to motivate
the employees to do their required training and encourage them to
progress.
In the PSTS scheme, based on stated criteria, employees can progress
to higher grades within their job function.
The company has established training requirements for each job and
grades within that job. These requirements are stated in the ADC
personnel policies

2nd Edition Page 43 of 69 ADC Employee Manual-2011

SECTION-8 CORRECTIVE GUIDANCE, RESIGNATION
AND TERMINATION

The procedure is designed to help and encourage all employees to

achieve and maintain high standards of conduct, attendance and job
performance. The company rules, regulations, and procedures apply to
all employees.
As general rule, Company doesn’t allow any internal transfer to other
rigs as part of punishment. When administering the warning notices and
corrective guidance reports, it is the responsibility of Manager to draw
the employee’s attention to specific deficiencies and an explanation of
how he may correct them.
The administrative procedure to issue warning notices and corrective
guidance reports is described below:

8.1 COUNSELING

The Manager is responsible for judging the performance and job

behavior of his employees. It is also the Manager’s responsibility to
make his employees aware of all what the Company expect from them
regarding work, conduct, punctuality, etc. In addition, employees should
be made aware of the consequence in case they violated company work
rules and regulations.
It is within Manager judge to evaluate the infraction committed by
employees and decide on the appropriate administrative action to be
taken ( counseling, memo to file, disciplinary warning notice) in order to
correct employees deficiencies and at the same time achieved maximum
productivity.

It should be noted here that any administrative action taken by

Manager should be properly documented. The documentation
should include: date of session; items discussed and remedial
action/s recommended to the employee (Specific forms for Warning
Notices and corrective guidance report are issued by HR
Department).

2nd Edition Page 44 of 69 ADC Employee Manual-2011

8.2 Progression of Warning Notices

The administrative procedure to issue warning notices and corrective

guidance report is as follows:

First Warning
The first time the employee commits one or more of the offence listed in
Type I of the Schedule of Offences (Specified in HR Policy), employee
may be issued a written warning describing the offence and explaining
how he could correct the conduct.

1. The Manager duly completes Warning Notice, for issuing the first
warning notice.

2. The Manager also completes Corrective Guidance Report in which he

includes a description of all the circumstances surrounding the
offence/incident, as well as an explanation of how the employee could
overcome the deficiencies. The Corrective Guidance Report should be
attached to the Warning Notice.

3. Original warning notice and the original copy of the corrective

guidance report must be sent to HR Department on timely basis.

NOTE:
If the warning notice or corrective guidance report are not
complete properly, HR Department will return it back for corrective
action.
Copy of Warning Notice should be given to employee.

Second Warning
If an employee commits for the second time one or more of the offences
listed in Type I of the Schedule of Offences (Specified in HR Policy),
Manager may issue a second written warning describing the offence,
emphasizing the seriousness of repeated violations of Company rules,
and explaining how employee could correct the conduct.

The same format for the first warning notice is also used for the second
warning notice.

2nd Edition Page 45 of 69 ADC Employee Manual-2011

FINAL Warning
If an employee commits for the Third time one or more of the offences
specified in Type I of the Schedule of Offence (Specified in HR Policy);
or, if employee commits for the first time one of the offences listed in
Type II (Specified in HR Policy).

1. The Manager should consult with HR Department before issuing a

dismissal warning.

2. The Manager issues final written warning describing the latest

offence, outlining the previous offences, explaining how such
conduct could be corrected, reemphasizing the seriousness of
repeated violations of Company rules, and warning him that the
committing of any further offence shall result in the termination of
his service.

3. The Manager also completes Corrective Guidance Report,

providing details about the offence/incident and explanation of how
the employee could overcome his deficiencies.

4. Original warning notice and the original copy of the corrective

guidance report must be sent to HR Department on timely basis

The FOURTH TIME the employee commits one or more than one
infraction specified in Type I of the Schedule of Offence (Specified in HR
Policy), or employee commits for the SECOND time one or more of the
offence listed in Type II (Specified in HR Policy), or employee commits
for the FIRST time one of more of the offence listed in Type III of the
Schedule of Offence (Specified in HR policy), employee is subject to
termination from the service of the Company.

1. The Manager sends a letter to HR Department requesting a review of

the case and seeking advice and concurrence to the recommended
termination.

2. Employee should not be sent to HR Department by Manager unless

get approval by HR Department.

2nd Edition Page 46 of 69 ADC Employee Manual-2011

Acknowledgement of Warning Notices
Each Warning Notice, including Dismissal Warning Notice, is to be
acknowledged by the employee. If the employee refuses to acknowledge
the Warning Notice, indicate so on the Warning Notice that the employee
declined to sign, in the presence of two witnesses.

Validity of Warning Notices/Final Warning Notice:

The warning notices should not be considered in the event of
repeated violation exceed (SIX MONTHS)

8.3. GRIEVANCE PROCEDURE

It is the Company’s aim to maintain good employee relations and to

avoid grievances and disputes. In any work situation, there can be an
occasion when employee will have complaint or problem he wish to bring
the attention of the company. ADC believes that an essential ingredient
in maintaining a productive work atmosphere is open communications
and prompt settlement of all legitimate employee complaints.

In order to resolve a complaint ADC employees may and should discuss

their problems and concerns with their direct supervisors. They can at
any time request to be referred to higher management as per the
following procedure.

All employees’ grievances should be settled though the company’s

internal procedure as follows:

a) The grievance should be presented to the immediate supervisor

without fear of censure or reprisal. The supervisor will discuss the
grievance, giving the matter serious consideration and attempt to
reach a settlement that is fair to employee, other employees and
the company. The employee should be advised that assistance will
be provided by the HR Manager if requested.

b) In the event that the grievance involves the immediate supervisor

or manager or the employee is not comfortable discussing his
concerns with his immediate supervisor or manager, the employee
may elect to go to his supervisor’s supervisor. If settlement has not

2nd Edition Page 47 of 69 ADC Employee Manual-2011

 been reached at this point, the case should be referred and
discussed with the appropriate manager in conjunction with the HR
Manager for review and response.

ADC management will discuss the situation and attempt to reach a

settlement that is fair to all concerned.
The time frame at each level will be of a maximum of one week in
order to resolve the dispute/grievance in a timely manner.

8.4. TYPES OF TERMINATION OF SERVICE

Resignation
Any employee who is engaged with the Company by an unspecified
employment contract may terminate his employment with the Company
through resignation by giving his immediate supervisor a written notice of
at least one month working notice period (30) days prior to the effective
date of leaving the Company's service. In the event the employee does
not provide 30 working days written notice, company has the right to
deduct one month salary from the employee final dues.

Service Termination for Reaching Age of Normal Retirement

The worker attains the age of retirement, which is sixty years for males
and fifty five years for females, unless the two parties agree upon
continuing work after this age.

Service Termination for Death

Termination of service due to the death of an employee shall be effected
from date of that death as stated on the (official death certificate).

Service Termination for Medical Reasons

The Company may terminate the services of the employee who is unfit
for medical reasons more than the period used as sick leave and the due
balance of annual leaves.

2nd Edition Page 48 of 69 ADC Employee Manual-2011

Service Termination in Line with Article (80) of the Labor
Law
The company has the right to terminate the contract without an award,
advance notice or indemnity only in the following cases:

1. If, during or by reason of the work, the worker assaults the

employer, the manager in-charge or any of his superiors.
2. If the worker fails to perform his essential obligations arising
from the work contract, or to obey legitimate orders, or if, in spite
of written warnings, he deliberately fails to observe the
instructions related to the safety of work and workers as may be
posted by the employer in a prominent place.
3. If the worker leaving the work place without permission or bring
a personal vehicle to the rig site.
4. If it is established that the worker has committed a misconduct or
an act infringing on honesty or integrity.
5. If the worker does not comply with QHSE regulation and/or other
applicable safety regulations.
6. If the worker refuse to accept a proposed transfer with the same
terms and conditions as the employees current assignment.
7. If the worker deliberately commits any act or default with the
intent to cause material loss to the employer, provided that the
latter shall report the incident to the appropriate authorities within
twenty-four hours from being aware of such occurrence.
8. If the worker resorts to forgery in order to obtain the job.
9. If the worker is still on probation.
10. If the worker is absent without valid reason for more than twenty
days in one year or for more than ten consecutive days,
provided that the dismissal be preceded by a written warning
from the employer to the worker if the latter is absent for ten
days in the first case and for five days in the second.
11. If the worker unlawfully takes advantage of his position for
personal gain.
12. If the worker discloses work- related industrial or commercial
secrets.

2nd Edition Page 49 of 69 ADC Employee Manual-2011

Service Termination in Line with Articles (75) of the Labor
Law
The Company may terminate services of the employee for justifiable
reasons (such as job cancellation, reduction of manpower, Company re-
organization or for any other convincing cause), after advising him within
thirty (30) days before service termination. Employee in this case will be
eligible for service termination award.

Service Termination for Total Disability

The Company will have the right to terminate employee's services in
case of total permanent disability, when a medical certificate from the
Company's approved medical facility establishes the case.
The date when service termination becomes effective will be left to the
discretion of the management.

Service Termination due to Government Instructions

Services of an employee may be terminated when the government
authorities revoke or do not renew his work or residence permit. In such
cases employee will be entitled to end of service award.

Service Termination on the Expiry of Specified Employment

Agreement
Employee's service with the Company will terminate when his
employment agreement expires if it is of a specified term category.
Employee in this case will be entitled to end of service award.

2nd Edition Page 50 of 69 ADC Employee Manual-2011

 SECTION-9 REIMBURSEMENT OF EXPENSES

The Company will reimburse employees for authorized reasonable

expenses incurred while carrying out Company business, as per its
approved regulations which must be:

Submitted on a standard ADC expense claim form.

Submitted within 90 days of the time the expense is incurred.
Approved by the employee’s supervisor; the minimum level for
approval is Department head.

9.1. RESPONSIBILITY

The Employee
The employee is responsible to keep accurate records and supporting
documents of expenses incurred on behalf of the Company while
carrying out its business. He/she shall also raise expense claims via
his/her direct supervisor in a timely manner for reimbursement.

Direct Supervisors/Department Head

Direct supervisor is responsible to authorize incurring of expenses on
behalf of the Company, to verify accuracy, legitimacy and compliance
with company policy of expense claims raised by employees under
his/her supervision prior to processing.

Human Resources Department

The Human Resources is responsible to prepare and interpret the
Company policy with respect to reimbursement of expenses and ensure
compliance with its approved regulations. HR Business Unit will also
review these policies and recommend appropriate amendments when
necessary.

Finance Department
The Finance Department is responsible to process reimbursement of
expenses in accordance with Company policy in a timely manner.

Exchange rates between currencies of incurred expenses and the

currency of payment will be determined by the actual exchange rate
used by the employee (supporting documentation of exchanges rates

2nd Edition Page 51 of 69 ADC Employee Manual-2011

used must accompany the expense claim) or by the official rate at the
time of payment.

9.2. TRAVEL EXPENSES

9.2.1. Expenses Covered

a) All expenses will have fully supported receipts and documentation

attached to the expense claim.

b) In the event of flight stop over en-route, the company will

reimburse reasonable hotel and meal expenses, providing the
delay or next flight connection is at least 4 hours for meals and 8
hours for hotel accommodation. The necessary transit visa
charges are paid by ADC provided with expenses are not carried
by the airline.

c) The company is not responsible for any tax (personnel or

corporate) levied in the home country of the employee.

9.2.2. Expenses Not Covered

For example:

a) Hotel accommodation at the airport before departure (except if the

flight delayed more that eight hours), and not provided by airlines.

b) Alcoholic beverages during any point of travel.

c) Meals at the airport before departure unless the flight is delayed

more than four hours and not provided by airlines.

d) Hotel accommodation during stop over en-route except if the flight

is delayed or the connection is more than eight hours (Normally
paid by airlines).

2nd Edition Page 52 of 69 ADC Employee Manual-2011

9.3. REIMBURSEMENT OF BUSINESS TRIP & TRAINING
EXPENSES

Direct Supervisor approval with Department head is to be taken by all

employees before proceeding on business trip. Air tickets will not be
issued by the Company nor leave recognized unless the approval is
taken place.

On assigned business trips or Training whenever housing and meals

cannot be provided by the Company, employee shall be given the option
to choose between:

To have a daily allowance to cover related expenses for Business

trip or Training. OR,
Reimburse the actual reasonable accommodation, meals and
transportations costs. (actual reasonable costs of accommodation
means that the employee uses a single room at one of the hotels
contracted with Company or at one of those which gives discount
to Company employees, provided that cost shall be within the daily
allowance).

Daily Allowance:

This allowance is intended to cover the cost of meals, accommodation,

and incidental expenses incurred during the business trip or training
course. The amount of the allowance depends on the employee base
salary as follows:

Saudi
From To Riyals
1,000 5,000 500
5,001 10,000 600
10,001 14,000 800
14,001 16,000 900
16,001 23,000 1,100
23,001 35,000 1,300
and
35,001 above 1,500

2nd Edition Page 53 of 69 ADC Employee Manual-2011

The above rates shall apply to each night spend out side the place of
work not arranged by the Company. These rates will increase by 50% for
all outside the kingdom missions however if the mission’s period out side
the Kingdom if extended more than one month the rate per day will be
increased by 25% only instead of 50% for the period exceed the first one
month.

Managing Directors, Operation Manager and Finance Manager/CFO are

allowed Business Class travel and S.R 400/day spending allowance
while outside the Kingdom for business travel. S.R 350/day for
transportation which includes airport transfers and travel for business
meetings only, this allowance applies to in the Kingdom and international
travels (for Management only).

The employee can not claim a daily flat allowance if the reimbursement
based on presentation of receipts or vice versa.

Training and Business related cost such as visa charges, medical

vaccination etc will be borne by the company.

Company provides or reimburses an economy class ticket at an

excursion fare for the employee, without excess luggage

Normally employees attend assigned business and training courses

without their families. As a policy, the Company will not provide
reimbursement of families accompanying employees on business
assignments for travelling or living expenses.

The above allowance does not apply to office employees assigned to rig
upgrade projects and Shipyard Projects. The following allowance will
paid to only assigned office employees during such project as follows:

Project Manager S.R500 to each night spend during Shipyard.

Other Employees S.R 350 to each night spend during Shipyard.

2nd Edition Page 54 of 69 ADC Employee Manual-2011

9.4. PERSONAL CAR

Employees using personal vehicles for company business related trips

are eligible for mileage allowance to be reimbursed by submitting an
expense account with prior approval from his direct Manager. The
mileage allowance is established by the management and is subject to
annual review.

Employees assigned a company vehicle are not eligible to claim

transport allowance. All company drivers and employees who are
assigned company vehicle must complete a defensive
driving/commentary drive certification on yearly basis.

The use of a personal car for company business must first be approved
by management and no reimbursement will be paid if there is no prior
approval of the management. Use of personal car for company business
is reimbursed at the following rates:
SR 1.50 / km

S.R 1,500 as car allowance will be paid monthly (Subject to

Management approval) to selected employees for some selected
positions use their personal car for company business.

The mileage allowance is established by the management and subject to

annual review.

9.5. REIMBURSEMENT OF USING MOBILE FOR

BUSINESS PURPOSE

The company provides a standard mobile phone set to few employees

who need to use mobile phones frequently for business purpose upon
the approval of Managing Directors.
Selected employees (Management Discretion) will purchase sim card
and company will pay mobile phone allowance as follows:

Personnel Coordinators/Personnel
Assistant/GRO's and Passport-man : SR200.00 per month.
Buyer Leader/Buyer Supervisor/Materials

2nd Edition Page 55 of 69 ADC Employee Manual-2011

 Supervisor : SR150.00 per month.
Khafji Base Buyer Leader : SR200.00 per month.
Khafji Jetty Supervisor/Khafji Yard Foreman : SR200.00 per month.
Khafji Jetty R/A Pusher : SR100.00 per month.
Journey Management/Safety
Officers & Other authorized personnel : SR150.00 per month.
Supervisors : SR200.00 per month.
Drivers : SR100.00 per month.
Compound Coordinators and family drivers : SR100.00 per month.

The above allowance covers the monthly subscription and telephone

calls made for business purposes and will be paid on monthly basis
through approved expense claim.
Mobile phone allowance does not apply to the Managers. The company
will provide mobile phone with sim card to the Managers on the
discretion and approval of Managing Directors. However, company will
pay for only local calls and business related calls.

9.6. DONATIONS & CONTRIBUTIONS

As a policy the company do not donate to government bodies schools,

religious or community groups, however, if it is necessary to take prior
approval of Managing Directors regardless of the amount involved.

2nd Edition Page 56 of 69 ADC Employee Manual-2011

 SECTION-10. TRANSFERS

Generally the Company doesn’t encourage any internal transfer as

a part of punishment. At the same time the Company encourages
the transfer of an employee to a different location for development
of his career or promotion to the next level.

Transfer to new Rigs with in Division will be based on Rig

Manager/Division Manager recommendations and depends on the
previous years appraisal rating.

Transfer from Division to another will be based on Division

Managers/Operations Manager recommendations to HR
Department.

For the development of field supervisors, transfers to another

location will be after completion of minimum 3 years at one
location.

Transfers of Office/Other staff will be depending upon agreement

between the two Managers.

2nd Edition Page 57 of 69 ADC Employee Manual-2011

 SECTION-11 HEALTH CARE

All employees and their families (wife and dependent children) are
entitled for medical Insurance treatment in accordance with the
standards set forth by Cooperative Health Insurance Law.

Persons eligible for medical insurance: :

All employees on the job shall be
eligible for insurance as of the effective
date of policy. As for employees who .
join the policy holder later, they shall be
eligible for insurance as from the date of .
either joining service or date of arrival
in the Kingdom.
Husband/Wife: : /

Children (Minimum Age) – from the . : -

date of birth
. 21 : -
Sons (Maximum Age) – 21 Years
(Insurance coverage of this policy shall )
include the employee’s unmarried,
widowed & divorced daughters who are
not working and are supported by the .(
employee).

11.1. BENEFITS & LIMIT OF COVERAGE

Maximum Benefit limit for SR 500,000

each person each year
Room & Board Limit:
(a) Within GU Provider Single Private Room
-
Network:
:
-
(b) Outside the GU Provider SR.750
:
Network Maximum per day

2nd Edition Page 58 of 69 ADC Employee Manual-2011

Doctor’s Consultation Fee
(a) Within GU Provider
Paid in Full
Network: -
(b) Outside the Provider :
SR.175
Network Maximum per -
visit: :
Optical SR.1,500 per person per year
Physiotherapy, Osteopathy &
Chiropractic Treatments due
to sickness/illness is covered SR.5,000 per person per year
subject to prior approval from
GU COOP
Dialysis Upto Policy Limit
RIGS medicine expenses:
The first aid medicines used
at rigs based on the actual
costs incurred subject to
Covered
Arabian Drilling Company
(ADC) submitting the
invoices on quarterly basis
will be paid by GU COOP.
Pre-Authorization &
Treatment Approval is :
required for: -
(a) All In-Patient cases. -
(b) All non-emergency out- SR.1,000
patient cases exceeding: .
Out of Area Cover As per CCHI
Emergency treatment outside
Covered
Area of Cover:
Deductible per out-patient 10% for each and every visit
visit subject to maximum SR.50

2nd Edition Page 59 of 69 ADC Employee Manual-2011

 Maximum SR 15,000 during the )
Pregnancy and delivery policy period
includes Normal Delivery, (
Caesarean Section and
Abortion. If the beneficiary
(employee) is on married
status.
Maximum policy benefit limit
Delivery of premature child
Dental Maximum benefit SR 2,000
during the policy period
Maximum SR 15,000 during the
Acute psychiatric cases policy period
Maximum SR 10,000 during the
Repatriation of remains of policy period
deceased to original country
Kingdom of Saudi Arabia for
Area of cover Saudi

Dental Benefit:
Covered and is limited to consultation, extraction ( )
(normal & surgical), Root canal treatment, Gum )
treatment (Gingivitis, Gingival abscess- drainage & (
Scaling). X-ray, fillings and medications. All other
treatments including cosmetic treatments are
excluded.

Maternity Benefit:
Covered from day one (1) up to the expiry of the
policy. One (1) Maternity Benefit per spouse only.
Cover includes pre and post natal treatment, normal
delivery, caesarean, miscarriage and termination of
pregnancy on medical grounds. .

2nd Edition Page 60 of 69 ADC Employee Manual-2011

Emergency treatment outside Saudi Arabia for
Saudi Employees:
Treatment received outside Saudi Arabia is limited to
days per member per year. This is limited to
emergency treatment only received when traveling on
business or vacation. We will only reimburse the
customary and reasonable treatment expenses as
applicable in the location or in Saudi Arabia
whichever is the less expensive option subject to 20% . %
co-insurance to be borne by the member

Additional Covers:
Additional covers are included for all members on
level of cover.

2nd Edition Page 61 of 69 ADC Employee Manual-2011

 SECTION-12 ACCIDENTS AND OCCUPATIONAL
HEALTH

ADC is fully committed to the protection of Health, Safety and

Environment. It also recognizes employee’s occupational health as an
integral part of ADC operations. The company is also committed to
working in a safe and clean manner to protect the health of its
employees at all times.

When any employee is afflicted with a work injury or an occupational

disease, he should promptly report it to his direct supervisor immediately
who shall in turn advise the HR Department within 24 hours, and a report
shall be prepared on the appropriate form (refer to the QHSE manual) to
report the accident to GOSI Office. If an employee fails to report an
accident/injury to his immediate supervisor, it will be considered as a
breach of his contract and company policies. The company can not
accept any liabilities, treatment or compensation.

Work injuries and occupational diseases shall be subject to provisions of

Occupational Risks Branch, GOSI Regulations.

During hospitalization and absence from work arising from temporary

incapacity due to work related accident or illness, employee’s
remuneration will be covered by the General Organization for Social
Insurance “GOSI”.

GOSI provides benefits and compensation to all employees in the case

of work-related injuries and occupational diseases.

Free medical attention for accidents while on duty.

Free surgery if required for accidents while on duty.
Compensation in case of permanent disability due to accidents
while on duty.
Compensation to dependents in case of death due to accidents
while on duty.

2nd Edition Page 62 of 69 ADC Employee Manual-2011

Injuries suffered during days off should be reported to the HR
department with a supporting medical certificate or fitness certificate
prior to proceeding to work.

Work Related Injuries

Any injury suffered by the employee during performance of work.

Any injury suffered by the employee during his traveling from his
home to his workplace and back.
Any injury suffered by the employee during his working hours while
going to or coming from his meal or prayer place.
Any injury suffered by the employee in the course of travel,
carrying out an assigned mission, within the Kingdom.

2nd Edition Page 63 of 69 ADC Employee Manual-2011

 SECTION-13. DEATH AND DISABILITY COVERAGE

All employees are covered under ADC’s death and disability (DD) benefit
program funded 100% by the company.

The ADC DD benefit program guarantees that in the event of the death
or disability of any employee due to any cause, he/ she or their family
will receive:

1st) In case of death, two times the annual base salary. This means
that should GOSI pay nothing, or pay less than two times the
annual base salary, ADC will pay the balance; or
2nd) In the case of disability, up to two times the annual base salary
depending on the extent of impairment if not paid by GOSI.

In all cases HR Department will ask the employees to sign a nomination

form to be used in case of death of employee.

BENEFIT A
Loss of Life Benefit

If such injury results in loss of life of an employee within one hundred

eighty (180) days of the date of the accident or illness, the Company will
pay the Principal Sum applicable to the Employee’s Beneficiary in
accordance with the Classification of Employees and Schedule of
Benefits.

The Principal Sum is two times the employee’s annual basic salary.

BENEFIT B
Dismemberment, or Loss of Sight, Hearing or Speech
Benefit
If such injury or illness does not result in the loss of life to the Employee
but does result within one hundred eighty (180) days, in any one of the

2nd Edition Page 64 of 69 ADC Employee Manual-2011

specific losses shown in the schedule below, the company will pay the
scheduled percentage of the Principal Sum applicable to such employee
in accordance with the classification of the employee and Schedule of
Benefits.

However, under no circumstances will payment be made for more than

one such loss, the greatest sustained by any employee as a result of any
one accident or illness.

For Loss of:

Both Hands 100% Either Hand or Foot 100%

and Sight of One Eye
Both Feet 100% Either Arm or Foot and 100%
Sight of One Eye
Sight of both Eyes 100% Either Hand or Leg 100%
and Sight of One Eye
Both Legs 100% Hearing of both Ears 100%
Both Arms 100% Speech 50%
One Hand & One 100% Either Leg or Arm 50%
Foot
One Leg & One 100% Either Hand or Foot 50%
Hand
One Arm & One Foot 100% Sight of One Eye 50%

BENEFIT C
Permanent Total Disability
If, as the result of such injury or illness, and within one hundred eighty
(180) days of the date of the accident or illness, an employee becomes
totally disabled, and such disability has continued for a period of twelve
(12) consecutive months. If the Employee is totally and permanently
disabled at the end of this period, the company will pay the Permanent
Total Disability Benefit to the employee in accordance with the
Classification of Employees and Schedule of Benefits, less any amount
paid or payable as a result of the same accident or illness under Benefit.

2nd Edition Page 65 of 69 ADC Employee Manual-2011

In no event will the total benefits paid exceed two times the employee’s
annual basic salary.

The ADC death or disability benefits are not payable if the employee is:

1. Being mobilized or taking active part in a local war or warlike

operation (whether the war be declared or not), civil commotion,
rebellion, insurrection, military or usurped power.
2. Intentionally inhaling gas, intentionally ingesting poisons or legally
prohibited drugs except upon medical advice, or any means of
suicide.
3. Playing any professional sport for or against professional clubs or
participating in speed or duration tests or races of any kind in/upon
mechanical vehicles (terrestrial or aerial or marine).
4. Flying in an aircraft, including helicopters, unless the pilot is either
legally licensed or is a military pilot and has filed a scheduled flight
plan when required by local regulations.
5. Intentionally violating the law.

2nd Edition Page 66 of 69 ADC Employee Manual-2011

 SECTION-14. SENIORITY AWARD

14.1. POLICY DEFINITION

Seniority is defined as the length of continuous employment with ADC

under any status (except suspended employment). The starting date
used to calculate an employee's seniority is stipulated in the letter of
employment.

As a rule ADC does not re-hire an employee who has resigned or

terminated with some cause. However, if the situation does arise the
employee's re-hire date will be used to calculate seniority, previous
employment will not be taken into consideration.

14.2. SENIORITY AWARDS

In recognition of seniority after every five years intervals of continuous
service employees are awarded seniority awards as per the following
table.

Seniority Award To be presented by

5 years S.R 1,000 & certificate Dept/rig manager
10 years S.R 2,000 & certificate Dept/rig manager
15 years S.R 3,000 & certificate Dept/rig manager
20 years S.R 5,000 & certificate OM or MD’s
25 years S.R 15,000 & certificate MD’s
30 years S.R 15,000 & certificate MD’s
35 years Management discretion MD’s
40 years Management discretion MD’s

2nd Edition Page 67 of 69 ADC Employee Manual-2011

 SECTION-15. DEFERRED BENEFITS

15.1. PENSION SCHEME

All Saudi employees are covered under the pension scheme with
General Organization of Social Insurance (GOSI). GOSI pension
scheme does not apply to expatriate employees.

15.2. END OF SERVICES COMPENSATION (ESC)

ESC will be paid according to Saudi Arabian work laws Art. 84&85 and
are summarized as follows:

15.2.1. Lay off ( Termination )

In case of lay off (termination) by the company ESC will be paid as

follows:

1/2 monthly salary (15 days) for each of the first 5 years and 30 days
salary for the subsequent years of service to the company.

Example: If employee worked in the rig for 6 years and his basic salary
was S.R 2,000. His ESC is as follow:

Basic Salary S.R 2,000

Housing allowance S.R 500
Transportation allowance S.R 200
Total S.R 2,700

First Five years (S.R 2,700 X 1,800 days)/(360 days X2) = S.R 6,750
Above Five years (S.R 2,700 X 365 days)/(360 days) = S.R 2,700

Total ESC is S.R 9,450

15.2.2. Resignation

In case of resignation ESC will be paid as follows, provided that a written

resignation notice is given to the company at least one month before

2nd Edition Page 68 of 69 ADC Employee Manual-2011

leaving work i.e. during working days and not during days off or vacation
periods.

1/3rd of half month salary (5 days per year) if service period is more
than 2 consecutive years and less than 5 years. No ESC is payable if
the service period is less than 2 years.

2/3rd of half month monthly salary (10 days pay per year) for the first
5 consecutive years.

2/3 of monthly salary (20 days pay per year) for service more than 5
consecutive years and less than 10 years.

One monthly salary (30 days per year) for service of more than 10
consecutive years.

If the service period is more than 10 years, the ESC will be calculated
as 15 days pay per year for the first 5 years and one month pay per
year for the subsequent years of service.

2nd Edition Page 69 of 69 ADC Employee Manual-2011