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1. Daily inspections of the job sites by superintendents and the safety manager. 2. Periodic inspections of job sites by representatives of our insurance company and/or consultants. 3. Periodic inspections of job sites by the upper management of the Company. All employees, trade contractor employees and lower tier trade contractors are required to comply with all OSHA regulations and the safety rules and policy of this jobsite. The purpose of this discipline program is not to penalize the worker or the subcontractor, but to assist in changing the undesirable work habits and behaviors, eliminating the potential for injury and damage. This disciplinary program will be enforced in a fair and consistent manner, taking into account the severity of the act or condition, which occurred or was present, and any previous disciplinary problems. Monetary fines will be issued to the subcontractor for non-compliance with the safety program of the subcontractor employee or lower tiered contractor employee. Each repeat violation will result in a minimum fine of$500 per occurrence. The enforcement procedure will be as follows: On a first offense, the worker is to be verbally informed that the workers actions are jeopardizing his/her safety and the safety or others. The exact nature of the hazard is to be thoroughly explained to the worker. The violation is to be brought to the attention of the worker's supervisor and a record of the is made with the nature of the violation. If the worker is a subcontracted worker, the subcontractor will be issued a minimum fine of$100 for each observed violation. A deduct change order will be issued to the contractor for the fine accumulated each month. If the undesirable act or condition is of a serious nature, or the worker becomes argumentative or belligerent, a written reprimand is issued to the employee. If the worker is a subcontracted worker, and fine as described in the following paragraph may be issued. On a second offense for the same violation, a Safety Hazard Notification is issued and a copy is placed in the employee personnel file. If the worker is a subcontracted worker, the notification is sent to the to the contractor responsible for that worker if applicable. The notification will explain in detail the nature of the hazard. The subcontractor will be issued a minimum fine of $250 for each observed violation. A deduct change order will be issued to the contractor for the fine accumulated each month. On a third offense for the same violation, a Safety Hazard Notification is issued and a copy is and a copy is placed in the employee personnel file and the worker will be terminated. If the worker is a subcontracted worker, the notification will explain in detail the nature of the hazard and the worker will be immediately removed from the project and shall not be permitted to return. 11