NEXTEER AUTOMOTIVE

RULES AND PROCEDURES FOR

CONTRACTORS

October 2009

SAGINAW SITE

FOREWORD Contractors who have contracts with Nexteer Automotive are independent contractors and are responsible for compliance with applicable Federal, State, and Local safety and employment laws. Nexteer Automotive has developed various Safety Standards and Procedures that are intended to provide it’s employees, suppliers, visitors, and contractors a safe environment while on Nexteer property. The rules and procedures in this book are Nexteer’s Safety Standard requirements to which contractors must comply. These requirements are in addition to the requirements of the Michigan Department of Consumer and Industry Services, Construction Safety Standards (MIOSHA). Contractors are responsible for assuring that their employees are knowledgeable of and comply with these rules and proc3edures as well as those of MIOSHA. In the event of conflict of rules, the more stringent rule shall apply. In situations not specifically covered by law or these rules and procedures, individual judgment and discretion are very important. Disregard of laws or these rules and procedures will be cause for corrective action. The contractor is responsible for safety at the job site. The contractor’s responsibility for job safety extends to each of the contractor’s employees and to each subcontractor and its employees. i

DEFINITIONS OWNER: Nexteer Automotive HOST EMPLOYEE: This term shall mean the person authorized in writing by the OWNER to act in a representative capacity for the OWNER In matters covered by any particular contract. NEXTEER PERSONNEL: This term shall mean only Nexteer employees or

consultants, other than the HOST EMPLOYEE, who have been designated by Nexteer to issue permits, tags, or administer other Nexteer programs.

PLANT: This term shall mean Nexteer Automotive, Saginaw operations. ii

TABLE OF CONTENTS

-A, B-

ACCIDENTS: PROCEDURES FOR HANDLING ALCOHOLIC 1 BEVERAGES & ILLEGAL DRUGS ASBESTIS: HANDLING, REMOVAL AND DISPOSAL 1-2 BARRICADE 2 BUSINESS RECORDS 2

-C, D-

CHEMICAL EXPOSURE: PROCEDURE FOR HANDLING 2 CHEMICAL HAZARD COMMUNICATION 3 NEXTEER SAFETY RULES 17-18 DRIVING AND PARKING 3

-E-

EATING AND DRINKING 3 EMERGENCY PLANS: TORNADO ALARM AND EVACUATION ALARM 3-4 ENVIRONMENT 4 EXCAVATION 4 EXCAVATION PROCEDURES 4 EXCAVATION ENTRY REQUIREMENTS 4-5

-F-

FALSE STATEMENTS 5 FIRE REPORTING AND PREVENTION 5-6 FIRE EXTINGUISHERS 6

-G, H-

GASOLINE AND DIESEL FUEL STORAGE 6-7 HEAVY EQUIPMENT 7 HOISTING MATERIALS AND HEAVY EQUIPMENT 8 HOUSEKEEPING/LITTERING 8

-I, J, K, L-

IDENTIFICATION AND ENTRY 8 ILLNESS 8 INDIVIDUAL PLANT RULES 8 LADDERS 9-10 LOCKOUT OF POWER DRIVEN EQUIPMENT 10 Iii

-M, N, O, P, Q-

MIOSHA REFERENCE v NOISE 10 OPERATION OF FUEL GAS TORCHES 16-17 Equipment Set-Up 16-17 Light UP 17 Shut OFF 17 Shutdown 17 OVERTIME AND ODD HOURS 11 PERSONAL PROTECTIVE EQUIPMENT 11-12 Clothing 11 Eye Protection 11 Fall Protection 11 Foot Protection 11-12 Head Protection 12 Respirators and Breathing Apparatus 12 Rings, Jewelry, and Loose fitting articles 12 PERMITS 12-13 Confined Space 13 Hot Work 13 PRE-JOB SAFETY CONFERENCE 13

-R, S-

RADIATION 14 TADIOS, TV, ETC. 14 SANDBLASTING 14 SCAFFOLDING 14 SECURITY INSPECTION 15 SMOKING 15 SOLICITATION AND DISTRIBUTION 15

-T, U-

THEFT 15 THREATS, INTIMIDATION, COERCIVE CONDUCT OR INSUBORDINATION 15 TOOLS: CONTRACTOR AND PERSONAL 15 TOOLS: NEXTEER 15

-V, W-

WEAPONS 15 WELDING AND CUTTING 16 Iv

For further information, reference the following MIOSHA Standards*… FOR CONSTRUCTION OPERATIONS 2A. STATE SAFETY STANDARDS PROMULGATED UNDER MIOSHA. PART 1 General Rules (effective 8/7/02) PART 6 Personal Protective Equipment (effective 7/28/99) PART 7 Welding and Cutting (effective 1/20/05) PART 8 Handling and Storage of Materials (effective 11/16/04) PART 9 Excavation, Trenching, and Shoring (effective 9/18/96) PART 11 Fixed and Portable Ladders (effective 9/18/96) PART 12 Scaffolds (effective 5/12/99) PART 14 Tunnels, Shafts, Cofferdams and Caissons (effective 02/27/03) PART 16 Power Transmission and Distribution (effective 8/22/05) PART 17 Electrical Installations (effective 12/08/82) PART 18 Fire Protection and Prevention (effective 9/18/02) PART 19 Tools (effective 3/06/97) PART 20 Demolition (effective 01/04/01) PART 21 Guarding of Walking and Working Areas (effective 9/18/96) PART 22 Signals, Signs, Tags, and Barricades (effective 7/31/01) PART 24 Tar Kettles (effective 9/18/96) PART 25 Concrete Construction (effective 12/19/03) PART 26 Steel and Precast Erection (effective 9/18/02) PART 27 Blasting and Use of Explosives (effective 6/16/94) PART 30 Telecommunicatons (effective 9/8/05) PART 31 Driving Operations (effective 6/16/94) 2B. FEDERAL SAFETY STANDARDS ADOPTED BY REFERENCE UNDER MIOSHA. PART 10 Lifting and Digging Equipment (effective 1/04/01) PART 13 Mobile Equipment (effective 7/30/99) 2C. GENERAL INDUSTRY SAFETY STANDARDS ADOPTED BY REFERENCE FOR CONSTRUCTION OPERATIONS. PART 1A. Abrasive Wheels (effective 6/15/90) PART 3 Fixed Ladders (effective 1/31/98) PART 7 Guards for Power Transmissions (effective 04/04/82) PART 12 Welding and Cutting (effective 3/05/97) PART 26 Metalworking Machinery (effective 3/05/97) PART 49 Slings (effective 4/20/99)

• These references are for convenience only and are current as of the printing of this book. Contractor is required to be knowledgeable of all pertinent and current MIOSHA, OSHA standards or codes affecting the job. MIOSHA Construction Standards are obtained from the Michigan Department of consumer and Industry Services, see appendix for the address and phone number.

v

ACCIDENTS: PROCEDURE FOR HANDLING The following procedures shall be followed for all incidents within the PLANT, or on job sites adjacent to the PLANT. Work sites remote from the PLANT shall have established procedures to handle emergency situations.

1. During regular working hours all work related injuries, chemical exposures, suspected work related injuries, or chemical exposures shall be promptly reported to the Medical Department for treatment or evaluation.

2. Minor incidents (contractor discretion) may be transported to Medical via a contractor vehicle. Cuts, which are bleeding profusely, falls and other potentially serious injuries require the use of the Nexteer ambulance. (The emergency phone numbers are 7-5380 & 7-9111 or you can pull an emergency pull box if an employee is down.)

3. First-aid supplies are only to be used from the time of the incident until the ambulance arrives and/or the injury is treated by Nexteer’s Medical Department. First-aid supplies are not to be used in lieu of treatment by Nexteers’s Medical Department.

4. If you are working an off-shift and medical in the plant you are working in is closed, call Security to find out which Medical Department is open.

5. Nexteer’s Medical Department and ambulance should also be used when a contractor is working in the PLANT and an unknown illness or condition requires emergency medical attention.

The contractor shall verbally report injury incidents to the HOST EMPLOYEE as soon as the incident is under control. A written report is required to be submitted to the HOST EMPLOYEE upon the contractor’s completion of the accident investigation. Written reports are also required for any near miss, fire, hazardous condition, or property damage incident even if an injury did not occur. Reports shall be submitted promptly to the HOST EMPLOYEE with copies sent to Security and the Safety Department. The HOST EMPLOYEE and other NEXTEER PERSONNEL, may participate is the contractor’s accident/incident investigation. Contractors have an obligation to investigate accidents involving their employees. ALCOHOLIC BEVERAGES & ILLEGAL DRUGS The use or possession of alcoholic beverages or illegal drugs on Nexteer property is prohibited. Any person appearing to be under the influence of alcohol or drugs shall be refused admittance to, or be removed from, Nexteer property. ASBESTOS: HANDLING, REMOVAL & DISPOSAL Only Michigan licensed asbestos abatement contractors shall remove or alter asbestos on Nexteer property. All removal or alteration shall be in compliance with current State and Federal requirements (29 CFR 1910.1001 and 1926.58) regarding asbestos abatement. The abatement contractor shall know and strictly adhere to the current legal requirements. All asbestos waste shall be disposed of according to local, state, and federal standards. 1

All material, which has the physical appearance of asbestos, shall be handled as asbestos, unless identified by Nexteer analytical procedures as non-asbestos bearing material. Contractor employees who remove, alter, or may otherwise disturb asbestos are required by the Michigan Department of Consumer and Industry Services to participate in a two-hour asbestos-awareness-training program. At Nexteer this includes, but is not limited to, all construction, demolition, maintenance, and service contractors. BARRICADES Contractors shall provide temporary barricades for the protection of people, equipment, and property where unsafe or emergency conditions exist. Barricaded areas are not to be entered without prior approval from the contractor, the HOST EMPLOYEE, or the individual responsible for the barricade. Barricade tape or wooden sawhorses are adequate for: excavations, overhead work, door blockage, asbestos removal, and sandblasting. The barricade must entirely surround the job. Temporary openings in floors, roofs, railings, or walls must be guarded to prevent falls and must have guarding in compliance with MIOSHA Pt. #21. Barricades that are placed in roadways or walkways must be visible both day and night. BUSINESS RECORDS It is prohibited to duplicate, destroy, or copy Nexteer records or data, or remove such records or data from Nexteer property. CHEMICAL EXPOSURE: PROCEDURE FOR HANDLING When chemical contact occurs, SPEED IS ESSENTIAL. Only water shall be used to wash away the chemical. Report to Medical upon the first indication of rash or burn especially if exposure to a chemical is suspected. Eye exposure – wash with flowing water at the nearest eyewash, HOLDING the eyes open, for a minimum of 15 minutes. And then go the the Medical Department. Skin exposure – wash with flowing water at the nearest safety shower. Remove shoes and clothing while showering. If goggles were worn, do not remove them until the chemical is washed away. Inhalation- get to fresh air immediately and then go the Medical Department. 2

CHEMICAL HAZARD COMMUNICATION Nexteer has made available to your employer chemical hazard information regarding chemicals known to be present in your work area and to which you may be exposed during a foreseeable emergency. Routine questions regarding chemical hazards should be directed to your immediate supervisor. DRIVING AND PARKING Drivers have the responsibility for the safe operation of vehicles in the PLANT. The speed limit is 25 mph unless otherwise posted. Seat belts must be worn by drivers and passengers. Vehicles must meet State laws governing safe mechanical working condition (brakes, lights, signals, horns, muffler, etc.) and the driver must have a current license and registration. When towing trailers, safety chains must be used. The front seat of the vehicles is limited to three persons, driver included. Do not block roadways, service drives, loading docks, dumpsters, or fire hydrants. All vehicle accidents must be reported immediately to the Nexteer Safety Department. Material that overhangs the end of a truck or trailer by four feet or more must be red flagged. Trucks hauling waste or demolition materials shall be equipped with an adequate top and rear closure to prevent material from dropping or blowing onto the roadway. EATING AND DRINKING Due to personal hygiene concerns and to prevent possible contamination, the eating or drinking of food or beverages shall be in authorized areas only. (REF, Michigan Dept. of Public Health Rule #4202 Sect 7B) EMERGENCY PLANS: TORNADO ALARM AND EVACUATION ALARM Nexteer Automotive uses a horn system to signal emergencies. It is important to know what the horn signals mean and what actions should be taken in the event of an emergency. The standard horn signals are: The Tornado Alarm consists of a three-minute solid blast on the horns. At this time you should move away from the exterior walls, go to a tornado shelter area, and stay away from overhead windows and heat treat. Wait for the All Clear signal before returning to work. The Evacuation Alarm consists of short intermittent blasts on the horns. You should exit the plant at the nearest location, go to the designated assembly area, stay 50 feet away from the building, and remain on company premises. Wait for the All Clear signal before returning to the plant. The All Clear signal is a 30 second solid blast on the horns.

. 3

Fire horns are tested periodically on Sundays during C-Shift. ENVIRONMENT Any observed leak, break, spill, or gas release shall be reported to Security immediately at 7-5380 or 7-9111. The HOST EMPLOYEE shall also be notified. EXCAVATION These rules apply to excavation, earth penetration, and to anyone working in an excavation within the PLANT, or on job sites adjacent to the PLANT. Excavation and penetration includes the use of such tools as backhoes, power shovels, jackhammers, pile drivers, augers, and drills as well as hand tools. Prior to any digging, the contractor shall:

• Check with the plant facility engineer. • Pay special attention to any potential buried hazards. • Inform the HOST EMPLOYEE if any unknown line or other hazard is found. • Call Plant Security immediately if there is an emergency (like a broken line or contact

with a buried power line. EXCAVATION PROCEDURES Hand digging shall be done if fragile or hazardous items are suspected. Fuel cylinders are not to be taken into excavations. Heating and cutting torches are to be removed immediately after use. The sides of an excavation over 4 feet deep which workers will enter, shall be laid back to a minimum of a 1 to 1 slope unless otherwise approved by the HOST EMPLOYEE, or be shored or provided with other protection. (REF. MIOSHA Construction Safety Standards Pt. #9, Excavating, Trenching, and Shoring.) 115 VAC power used in the excavation shall have ground fault protection. EXCAVATING ENTRY REQUIREMENTS Excavations over 4 feet deep in the plant shall be checked at the beginning of each day, before worker entry, for flammable vapors and oxygen deficiency. Periodic or continuous monitoring may be required and will be determined by the HOST EMPLOYEE. Oxygen content must be 21% and no flammable vapor indicated. Outside the plant the need or this requirement will be determined by the HOST EMPLOYEE. 4

Work requiring entry into caisson excavations, pipes, manholes, or sewer pipe shall be by Vessel Entry Permit ONLY. The HOST EMPLOYEE shall determine if ground contamination is present. Contamination shall be identified so that the appropriate communications and personal protective equipment can be used. The Industrial Hygiene Department may be required to test to assure Industrial Hygiene Guidelines are met. Workers shall not be in a trench (an excavation having depth greater than its width measured at the bottom) over 4 feet deep unless an observer is present and stationed outside the trench. The observer’s role is to warn those in the trench of changing conditions, both inside and outside the trench, and to summon assistance in an emergency. The observer may perform other duties, but must maintain VISUAL CONTACT with those in the trench at all times. Excavated materials shall be kept at least 2 feet away from the excavation edge and shall be piled with a maximum of 1 on 1 slope. Excavations with a depth of over 4 feet, which a worker will enter, shall be equipped with a ladder extending not less than 3 feet above the top of the bank or with a stable earth ramp. The means of egress shall not be more than 25 feet away from a worker’s location. FALSE STATEMENTS The making or publishing of false, vicious, or malicious statements concerning any Nexteer employee, or Nexteer products is prohibited. FIRE REPORTING AND PREVENTION Immediately report any fire to the Security Department (Emergency Phone numbers are located on the back cover of this handbook). Give your location, type of fire (flammable liquid, electrical), then meet and direct the fire truck. The contractor shall report any fire or property loss incident to the HOST EMPLOYEE as soon as possible. The contractor shall keep materials and equipment away from fire hydrants, extinguishers, hose racks, and other emergency equipment. Exits, stairways, fire doors, elevator approaches, and passageways shall also be kept clear. Maintain metal –to-metal contact when pouring gasoline or other flammable materials from one container to another. The area around welding and burning operations must be kept free of flammable or combustible materials. Welding and burning are not permitted within 50 feet of any refueling, spray painting, or coating operation. The contractor shall dispose of oily, greasy, or paint soaked rags in covered metal containers. Heating equipment, for construction purposes, shall be approved by the HOST EMPLOYEE prior to use. 5

The use of solid or liquid fuel salamanders will not be permitted without prior approval. Only non-flammable cleaning agents shall be used and adequate ventilation must be provided. Extra precaution is needed when chlorinated solvents are used in the presence of hot surface or ultra-violet rays (welding). Mechanical equipment used for the mixing of flammable or combustible materials, such as paints and coatings, shall be done using an air driven or explosion proof motor. Do not pour flammable, toxic, or corrosive materials into sewers. FIRE EXTINGUISHERS Contractor fire extinguishers shall be accessible at all times, visually inspected monthly, and have a seal to assure that they have not been discharged. The Contractor shall provide and maintain appropriate fire extinguishers as follows:

• A minimum of one 10lb. A,B,C dry chemical extinguisher in the work area shall be readily accessible wherever hot work is being performed.

• Fire extinguishers, the 20lb. Dry chemical type, shall be on the job site, located near vehicles and equipment containing raw materials for urethane foam generations.

• A minimum of two 20lb. Dry chemical extinguishers shall be located not closer than 10 feet or father than 25 feet from a tar kettle when it is in operation.

GASOLINE AND DIESEL FUEL STORAGE Storage systems for gasoline and diesel fuel used to refuel non-road equipment shall be approved by the HOST EMPLOYEE before being bought on to Nexteer property. Portable tanks or containers are limited to 660 gallons. Fifty-five gallon drums are not allowed. Tanks will be painted RED for gasoline and GREEN for diesel fuel. Contents shall be identified on two sides of the tank with a minimum of 3-inch high letters. Storage tanks will be equipped with the following accessories:

a) Fill opening flame arrestor b) Vent with flame arrestor c) Fusible link discharge opening d) Conductive discharge hose e) 20lb. Dry chemical fire extinguisher, 25 to 50 feet away from tank f) Self closing automatic nozzle g) Tank ground cable and grounding rod.

All cans (five gallons maximum) used for transporting or transferring gasoline or fuel, including #2 diesel, must be in approved safety cans with internal flame arrestor and closers. The cans must be marked with a minimum of 2-inch letters identifying the contents. 6

The HOST EMPLOYEE shall specify the location of the contractor’s fuel tanks. Truck or trailer mounted refueling equipment shall be approved by Underwriter’s Laboratory and must also be approved by the HOST EMPLOYEE prior to use within the PLANT. HEAVY EQUIPMENT Seat belts installed by the contractor or equipment manufacturer shall comply with SAE standards and shall be worn by the equipment operator. Operators of heavy equipment provided with outriggers shall:

a. Insure that all work ceases, in the area of the outriggers, until they are in position b. Insure that all people are in clear view and away from the outrigger danger zone c. Extend all out riggers before using the boom and fully retract them before

moving the unit. Operators of a winch truck shall have, on their person, a certificate that indicates that they are trained and authorized to operate the equipment, or the contractor shall provide a list of employees who are trained and authorized to operate the equipment to the HOST EMPLOYEE. Material handling equipment shall be provided with roll over protective structures (ROPS), which meet OSHA requirements 1926.001 or 1926.1002. This requirement applies to the following types of material handling equipment: all rubber-tired self-propelled scrapers; rubber-tired front-end loaders; rubber-tired dozers; wheel type agricultural and industrial tractors; crawlers tractors; crawler type loaders; motor graders; compactors; and rubber-tired skid steer equipment. This requirement does not apply to side boom pipe laying tractors. The following rules must be observed for the movement of cranes or other units having an overhang of 14 feet or more when traveling on site roadways.

a) All hydraulic cranes will have the jib stowed away before traveling. The HOST EMPLOYEE may man an exception if flagman and escorts are used and travel is limited to short distances;

b) A flagman shall be out whenever a crane with a boom or jib extended is moved into or over a street;

c) A warning sign shall be placed on the rear of the trailing escort vehicle. The escort shall use emergency flashers and/or a rotating beacon.

Winch trucks shall not have the load suspended from the hook while traveling. The load shall be secure on the bed of the truck. The hook of a winch truck shall not dangle freely when traveling. It must be tied down or secured in some manner. The ball of block of the cranes and similar equipment shall be painted fluorescent red or orange. 7

HOISTING MATERIALS AND HEAVY EQUIPMENT During the course of the job, contractors shall advise the HOST EMPLOYEE of the hoisting equipment being used and of planned hoisting schedules. When a lift is to be made under any of the following conditions the contractor shall submit a written critical-lift summary plan to the HOST EMPLOYEE:

a) Weight of the lift exceeds 80% of the load chart rating of the equipment being used; b) Weight of the lift exceeds 50% of the load chart rating of the equipment being used

and the lift is over power lines, pipe lines, tanks, or structures, etc; c) Two cranes are required for the lift; d) Pole or derricks are to be erected for the specific lift.

No lifts shall be made over power lines without written authorization from the HOST EMPLOYEE. Eyes in wire rope slings, used for rigging purposes, shall not be formed by using knots or wire rope clips. HOUSEKEEPING/LITTERING Littering or contributing to unsafe or poor and unsanitary housekeeping conditions is prohibited. IDENTIFICATION AND ENTRY Contractor employees are required to obtain either a Safety and Health Orientation card from the Great Lakes Safety Center and/or a Nexteer badge, after they have successfully completed the Nexteer safety orientation program. The Health and Safety cards or Nexteer badge must be in their possession at all times. A lost card or badge must be reported immediately to the Security Department. If entry to the PLANT is required other than during normal working hours, or if the contractor employees are working overtime, special arrangements must be made in advance through the HOST EMPLOYEE. ILLNESS Illness that occurs at the PLANT should be promptly brought to the attention of the Medical Department. INDIVIDUAL PLANT RULES Contractor personnel shall not wander about the PLANT. They shall stay on the job sites unless moving to and from the gate or to a new job site. Contractors are responsible for their tools and equipment. Report any lost or stolen tools, materials, or equipment to the HOST EMPLOYEE. Sleeping in the PLANT is prohibited. 8

Contractor employees shall not use shortcuts such as cutting corners, walking pipelines, sliding down pipelines or stanchions. Contractor personnel shall not climb through, under, over, or between railroad cars nor shall they walk through liquid. Horseplay in any form is not allowed. Tools, materials, and equipment must not be dropped or thrown. Sharp tools must be carried in sheaths when not in use. Contractor personnel must not operate, or make inoperative, safety devices such as relief valves, deluge valves, gauge valves, electrical and mechanical interlocks, guards, electrical switches, etc. Any accidental interruption of lines or equipment in service must be reported immediately to the HOST EMPLOYEE. Contractor personnel shall not ride a load being handled by a crane, nor shall they ride the slings, hook or ball or the crane. The EXCEPTION is that connectors may ride the ball during steel erection in accordance with MIOSHA Construction Standards Pt. #26, Steel Erection. Contractor personnel must not drop or jump onto a roof. Contractor personnel using pipeline or cable tray as a working surface must have prior written permission from the HOST EMPLOYEE. When authorized by the HOST EMPLOYEE, a safety harness and lanyard shall be attached at least 3 feet above the walking surface. Process piping shall not be used as a means of supporting material or hoisting equipment. LADDERS Ladders shall be industrial type 1 minimum, having a 250 lb. duty rating. Additionally, all ladders shall be clearly and permanently identified with the contractor company name. It is recommended that each ladder be given a specific identification number. Metal ladders are not allowed on Nexteer property without the prior approval of the HOST EMPLOYEE. Fiberglass ladders may be used with prior approval from NEXTEER PERSONNEL. Extension and straight ladders shall be equipped with ladder feet. The maximum height of extension ladders is 40 feet, and for stepladders the maximum height is 12 feet. Always tie off the top of an extension or straight ladder; until the ladder is secured, a second person shall keep the ladder from slipping. The use of Nexteer ladders by contractors is prohibited. 9

To prevent displacement of the upper and lower sections of an extension ladder, the extension ladder sections should be secured together. LOCK OUT OF POWER DRIVEN EQUIPMENT Before working on or in any equipment where motion of the equipment could cause injury, the power source shall be locked in the “OFF” position. Power sources may be electrical, hydraulic, steam, or air. Residual energy stored in hydraulic, compressed air systems, or spring-loaded devices must be considered and made safe before work is started. NEXTEER PERSONNEL will shut down, lockout, and tag the equipment. Contractor employees assigned to work on the equipment will then attach additional padlocks and tags. Before starting any job requiring lockout, the contractor personnel and NEXTEER PERSONNEL and/or the HOST EMPLOYEE should review the procedure to be followed for lockout and tagging requirements. NOISE Protection from noise exposure shall be provided by the contractor when sound levels on the job site exceed the following permissible noise exposures. Some process areas within the PLANT require ear protection. The HOST EMPLOYEE can assist the contractor in determining noise levels.

DURATION (hours per day)

SOUND LEVEL (dBA slow)

16 80 14 81 12 82

10.5 83 9.25 84

8 85 7 86 6 87 5 88

4.5 89 4 90

No one should be exposed to a noise level greater than 90 dBA at any time without ear protection. 10

OVERTIME AND ODD HOURS Usually, the contractor’s work is based on Nexteer’s work schedule. When overtime or odd hours are necessary, specific prior approval shall be obtained through the HOST EMPLOYEE. PERSONAL PROTECTIVE EQUIPMENT Clothing Contractor personnel shall wear clothing that is safe and proper for a factory floor and the specific job being performed. The wearing of canvas shoes, sneakers, house shoes, or being stripped to the waist is prohibited. When handling creosote treated lumber, long sleeves and gloves shall be worn. Gloves shall be disposed of at the end of the operation. Eye protection Safety glasses meeting ANSI Standard Z87.1 (with side shields) shall be worn at all times in the PLANT. Exceptions are allowed in offices, lunchrooms, and washrooms, during non-work related activities. A face shield and safety glasses (with side shields) shall be worn when chipping, grinding, buffing, and using a friction cut-off saw or impact chisel. All contractor personnel must know the location of the nearest emergency eye wash and shower. Fall protection Fall protection devices used in the PLANT shall be the full body type, meeting the requirements of ANSI Standard A10.14-1975, [Class III body harness system]. Lanyards used in conjunction with fall protection devices shall be synthetic fiber rope, half-inch nylon or equivalent, with a maximum length to provide for a vertical drop of not more than six feet from the point of attachment to the body. Lanyards shall incorporate double locking hooks and include a shock-absorbing feature meeting the requirements of ANSI Standard A10.14-1975. All fall protection devices shall be used in accordance with the applicable MIOSHA Safety Standards and these Rules and Procedures. EXCEPTIONS: Contractor personnel engaged in roofing work shall implement methods of fall protection at 10 feet, rather than 16 feet (REF.MIOSHA Standard Pt. #26). Contractor personnel engaged in steel erection shall implement fall protection methods at 10 feet rather than 30 feet (REF.MIOSHA Standard Pt. #26) Foot Protection All contractor personnel engaged in construction or maintenance activities shall wear appropriate protective footwear (safety shoes) meeting ANSI Standard Z41.1 11

Contractors that are engaged in demolition projects shall wear appropriate metatarsal protective footwear (safety shoes with metatarsal protection) meeting ANSI Standard Z41.1. Contractor personnel working with hot tar must wear a minimum six-inch high-laced boot meeting ANSI Standard Z41.1 and long sleeves, safety glasses with side shields and a face shield. Head Protection Approved hard hats shall be worn during all work related activities. Approved hard hats are those marked as meeting ANSI Standard Z89.1 (type A) and ANSI Standard Z89.2 (type B). The use of metal hard hats or bump caps is prohibited. Physically altered, painted, or damaged hard hats shall not be used. Respirators and Breathing Apparatus Persons required to wear a respirator during performance of their work shall be:

a) Trained in the use and maintenance of the respirator; b) Medically approved to wear the respirator; c) Respirator fit tested; d) Clean-shaven in all contact areas between the respirator seal surface and facial skin.

Contractor personnel shall wear air hoods, or equivalent, supplied by an approved source of breathing air when sandblasting, or when applying volatile or toxic materials inside tanks, rooms, or any other area not adequately ventilated. Pressurized “Plant Air” does not meet breathing air requirements. The use of the appropriate respirator is required and is recommended when any type of dust or fumes are present on the job. Insulating, concrete busting, painting, fiberglassing, or sawing brick or block are some jobs that produce dust or fumes where respirators should be used. Rings, Jewelry And Loose Fitting Articles Neckties, unrestrained long hair or beards, loose clothing, loose necklaces, bracelets, or other jewelry are not permitted in work areas where they may present a hazard. The HOST EMPLOYEE will communicate specific area rules. The contractor and its employees shall not wear rings while on the job site or during work related activities on Nexteer property. PERMITS Some contractor activities within the PLANT must NOT be performed unless a permit has been issued by NEXTEER PERSONNEL authorizing those activities. The HOST EMPLOYEE should be notified in advance when a situation arises which requires a permit. 12

A permit will cover the specific job or activity, the location and the safety requirements that must be followed. The contractor must inform its employees and subcontractors involved with the activity requiring a permit, of all the requirements listed in the permit. Confined Space Entry Prior to entry and any work being completed in a permit required confined space a “Confined Space Entry Permit” shall be completed. Hot Work Permit Any work that may generate a source of ignition to flammable or combustible materials such as welding, burning, or spark producing tools, requires a “Hot Work Permit” before work may start. Security is authorized to issue “Hot Work Permit.” PRE-JOB SAFETY CONFERENCE Prior to starting any field work on each job, the Host Employee will arrange and conduct a Pre-Job Safety Conference. Attendees should be:

a) Contractor supervisors (one must be a job site supervisor); b) Subcontractor’s job site supervisor; c) Nexteer project engineer (if other than HOST EMPLOYEE)

At that time, the HOST EMPLOYEE and the Project Engineer will review the Pre-Job Safety Conference items, such as general condition, emergency procedures and systems, protective equipment, and permits. Also covered will be any specific requirements of the work area in which the job is to be performed. Nexteer will make available to the contractor CHEMICAL HAZARD INFORMATION regarding chemicals known to be present in the specified work area, to which it’s employees or subcontractors may be exposed during a foreseeable emergency. The contractor is responsible for and must communicate this information to it’s employees and subcontractors prior to starting the job and to any personnel brought to the job site by the contractor at a later date. The information shall remain on the job site during the entire project. At the Pre-Job Safety Conference, the HOST EMPLOYEE may request from the contractor, a Safety Activity Plan for the specific project. The time allowed for response to the request will be determined by the HOST EMPLOYEE. The contractor’s plan should include the methods and activities planned for meeting the specific points discussed at the Pre-Job Safety Conference, the job site inspection and the construction activities associated with the particular project. 13

RADIATION Radiation-producing equipment or radioactive materials emit various forms of radiation such as alpha, beta, gamma, x-ray, and/or neutrons, which under certain conditions can cause adverse health effects. Those forms of radiation are produced in X-ray machines, sealed radioactive sources, loose radioactive materials, electron microscopes, and accelerators. All Nexteer State and Federal rules or regulations governing use, storage, or handling of a radioactive source must be complied with, by the contractor. No contractor shall install or remove any Nexteer radioactive device, except under the IMMEDIATE PRESENCE of the Nexteer Industrial Hygienist. Contact the HOST EMPLOYEE to make arrangements. Locations where a radiation source is stored shall be posted with signs such as “CAUTION: RADIOACTIVE MATERIALS” or “RADIATION AREA.” RADIOS, TV, ETC. Two-way radios may be used inside the PLANT when cleared by the HOST EMPLOYEE. Television sets are prohibited. Personal radios and tape recorders may be used if approved by the HOST EMPLOYEE. Headsets or earphone speakers are prohibited. SANDBLASTING Sandblasting is not to be performed on the job sites or on any Nexteer property without first obtaining approval from the HOST EMPLOYEE. Sandblasting jobs shall be barricaded and have the area posted with signs indicating the presence of silica dust and the need for respiratory protection. SCAFFOLDING All scaffolding erected in the PLANT shall be in compliance with MIOSHA Construction Safety Standard requirements as listed in Pt. #12, Scaffolds. Wooden scaffolds shall never be less than “MEDIUM DUTY.” Suspended scaffolds, such as swing stage, single point adjustable, needle beam, boatswain’s chair, and float scaffolds shall meet the following additional requirements.

a) Manila rope will non be used; b) Nylon or polypropylene rope, if used, must be new; c) Rope will not be used where exposed to chemical contact, fumes, or temperatures,

which could affect its performance. 14

SECURITY INSPECTION The Nexteer Security Department may search any person and inspect any thing, such as clothing, vehicles, tools, brief cases, and packages on Nexteer property at any time. SMOKING Smoking is prohibited where posted in plants and in offices, conference rooms, cafeterias, and restrooms. SOLICITATION AND DISTRIBUTION Collecting contributions, vending, soliciting, or distributing notices, handbills, posters, or any other written or printed material for any purpose while in the PLANT is prohibited. THEFT Any person stealing from Nexteer, a contractor, or an individual will be removed and may be subject to prosecution. THREATS, INTIMIDATION, COERCIVE CONDUCT, OR INSUBORDINATION Threatening, intimidating, coercing, fighting, insubordination, or interfering with Nexteer employees or contractor employees is prohibited. TOOLS: CONTRACTOR AND PERSONAL Tools owned by the contractor employees should be marked with their identification. The use of powder-actuated tools must be approved by the HOST EMPLOYEE. The tool and its use must be in compliance with Pt. #19, MIOSHA Construction Safety Standards. A “Hot Work Permit” is required to operate powder-actuated tools. All hand held power tools must have “dead man controls,” which means that the control cannot be locked, or will not stay, in the “ON” position. TOOLS: NEXTEER The use of Nexteer’s tools or other equipment by contractor personnel is prohibited without prior written agreement between the contractor and the HOST EMPLOYEE. WEAPONS Weapons such as guns, knives, bows and arrows, explosives, etc. are not permitted on Nexteer property or job sites. 15

WELDING AND CUTTING A “Hot Work Permit,” from security, is required for all welding or cutting operations. Proper precautions for fire prevention shall be taken in areas where welding or cutting is performed. A minimum of one 10lb. A, B, C dry fire extinguisher shall be immediately available in the work area. Safety glasses shall be worn under a welding shield or burning goggles. It is recommended that a fire retardant outer garment be worn by persons welding or cutting. When welding or cutting above open floors, other personnel, cable trays, and equipment, the area below shall be barricaded and protected from sparks or slag. When appropriate and necessary, a consideration shall be given to the use of a fire watch. Contractor personnel on fire watch must have no other assignment. They must watch for sparks and flames and be able to take the proper corrective action immediately. Individuals who are on fire watch shall remain in the area 30 minutes after the welding and burning is complete. Cylinder valves shall be closed at the completion of the work or when left unattended for prolonged periods. The groundings of work through common building steel shall not be allowed. All power sources with grounds to the same work shall be the same polarity. When welding on equipment, the contractor should take special care so that no damage will occur to the tank lining, bearing, seals, etc. due to arching. When welding on vessels that are supported or suspended by a weight cell system, a grounding strap from the vessel to the supporting structure shall be installed, if not already existing. This will prevent damage to the weigh cell. Do not weld over manhole covers or sewers unless they are properly covered to prevent slag or sparks from entering. OPERATION OF FUEL GAS TORCHES Equipment Set Up:

1) Be sure oxygen regulator valve is completely backed out. Open oxygen valve Completely so as to seat the valve at the top;

2) Open the oxygen valve on the torch and adjust the regulator valve to the desired Pressure. Allow gas to flow for a minimum of 10 seconds for every 50 feet of hose;

3) Close the oxygen valve on the torch. 16

4) Be sure the fuel gas regulator valve is completely backed out. Open the fuel gas cylinder valve one-half turn, or one turn maximum.

5) Open the fuel gas valve on the torch and adjust the pressure to the desired setting. Acetylene pressure shall not exceed 15 PSIG. Purge the hose as described for the oxygen line;

6) Close the fuel gas valve on the torch Light Up:

1) Crack the fuel gas valve on the torch about one-quarter turn and crack the oxygen valve on the torch slightly; 2) Light the torch with an approved spark lighter 3) Adjust the oxygen and fuel gas valves on the torch to the desired flame.

Shut Off:

1) Turn off the fuel gas on the torch; 2) Turn off the oxygen valve on the torch

Shutdown:

1) Turn off the gas valve; 2) Open the fuel gas torch valve and bleed off the fuel gas first. Back out the valve on

the fuel gas regulator; 3) Close the fuel gas valve on the torch; 4) Turn off the oxygen cylinder valve; 5) Open the oxygen valve on the torch and bleed out the oxygen. Back out the valve on

the regulator 6) Close the oxygen valve on the torch.

Nexteer Safety Rules 1) In the event of an emergency, or accident involving injury, notify you advisor as soon as possible and report to the Medical Department. 2) The wearing of wristwatches, jewelry, necklaces, neckties, or long sleeves is prohibited while working on revolving spindle operations, or on any other operation where doing so may constitute a hazard.

3) Finger rings will not be worn at any time by employees whose normal and regular work assignment is in the manufacturing area. Other employees will not wear rings while handling material or equipment or operating machinery or equipment. 4) Smoking is not permitted in prohibited areas that are indicated by “No Smoking” signs and/or red lines painted on the floor.

5) Safety eye protection (certified industrial lenses and frames) must be worn on company property except in locker rooms, offices, and cafeteria. 6) Safety guards must be in place before operating a machine.

7) Only authorized personnel may remove guards for repair and must replace them Immediately following the repair.

8) Do not wear gloves without permission from your advisor. 9) Electrical disconnect switch must, where possible, be padlocked while repairing

equipment. 17

10) Electrical and hydraulic must be shut off, and air pressure released, while making changes, repairs, cleaning, or oiling in or around any moving part that is hazardous. In the event that power must be turned on to check your work, extreme care should be exercised.

11) Machinery and equipment shut down for major repairs, tool, or die changes must be equipped with safety locks to prevent accidental operation. The decision to lock out for tool changes or adjustments must be made based on the divisional lock out procedure.

12) Only authorized electricians are permitted to make changes or repairs on electrical equipment unless authorized by advisor.

13) All machines, except those specified by supervision, must be shut off while unattended.

14) Machinery or equipment may be operated only after thorough instructions in its safe operation.

15) The use of compressed air to blow off clothing or cool body is strictly prohibited. The air hose shall be used only for the purpose for which it is intended and shall never be directed at another employee.

16) Altering or using hand held air blow guns exceeding 30 PSI is prohibited. 17) Do not cause any unsanitary condition in drinking fountains or elsewhere in the plant. 18) Employees must wear prescribed safety clothing and equipment. 19) Employees other than the operator must not ride on electric or gasoline driven trucks,

or transporters unless seat is authorized. 20) Attempting to unjam equipment with the power source(s) on is prohibited. Wherever

and whenever possible body members, such as hands and fingers shall not be used to unjam.

21) Always use the pedestrian doors when they are specifically provided. 22) Do not block stretchers or fire equipment. 23) Employees with long hair must wear protective hair covering when exposed to

equipment that would create a safety hazard. 24) Employees must use hearing protection required by their job assignment in the

manufacturing and test areas. 25) Employees are prohibited from wearing open-toe, fabric, tennis, or canvas shoes in

the manufacturing or test areas. 26) Operating any powered equipment that has had any safety plugs or limited switches

rendered ineffective is prohibited. 27) Crossing over assembly lines, transfer machines, or conveyors at other than

designated positions is prohibited. 18