Saudi Kayan Petrochemical Complex S/K Cracker Project

Al-Jubail, Saudi Arabia Rev. 0

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3. DISCIPLINE

This procedure is provided to assist in the uniform application of disciplinary action for safety violations
throughout the project.

The Safety Manager coordinates accident prevention as it applies to all areas of the safety and health program.
The Project Safety Manager reports directly to the Site Manager and is not a part of the project's line
organization. With the exception of work performed within their office, they do not exercise direct operational
control of any project work.

The Safety Manager shall keep a constant check on the methods used by supervisors and employees to prevent
safety violations. They have the authority to correct and instruct employees concerning the violation of safety
rules and shall stop work in situations of imminent danger. Should the Safety Manager witness an unsafe work
situation, which requires the application of the project's disciplinary program, they must bring this to the
attention of the appropriate project supervisor. The supervisor is responsible for carrying out the necessary
corrective measures.

The Safety Manager may advise or recommend the type of reprimand or discipline to be applied, but shall not
administer the discipline themselves, except for the serious safety violations requiring immediate
dismissal/termination from the project as stated below. If appropriate discipline is not forthcoming, the chain
of command shall be followed until appropriate corrective measures and discipline result. If satisfactory results
are not achieved after working through the Site Manager, the Safety Manager shall contact the Project Safety
Manager for resolution or further instructions.

SAFETY VIOLATION CLASSIFICATION

SERIOUS SAFETY VIOLATION: Violation involves a substantial probability that death, serious physical
harm, major equipment damage, or work stoppage could result.

Employees will immediately be dismissed/terminated from the project site should they commit of the
following serious safety violations:
 Exceeding the specified/posted speed limit on the project. The maximum speed limit on the
project is 20 kilometres per hour.

 Not complying with the 100% fall protection and 100% tie-off policy.

 Putting his live or the lives of others at risk (imminent danger).

 Altercation (both parties will be dismissed).

 Disregarding barriers (unauthorized access into an area marked as being unsafe or unauthorized
access into an restricted area.)

 Violating permit conditions or performing work without a permit where an approved permit is
needed.

 Energizing or de-energizing a power source without proper authorization.

 Smoking in vehicles, offices and any other unauthorized area.

 Operating or cause to operate equipment without a valid inspection and color coding.

 Entering equipment without confined space entry permit.

579614988.doc GENERAL SITE CONDITIONS AND SAFETY PROCEDURES

Saudi Kayan Petrochemical Complex S/K Cracker Project
Al-Jubail, Saudi Arabia Rev. 0
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SAFETY VIOLATION: Violation has a direct relationship to work place safety and health where the
exposure is not likely to cause death, serious physical harm, or major equipment damage.

Safety violations call for a documented oral reprimand for the first violation noted and the employee’s ID
badge punched one hole. The second violation noted will require a second hole punched in employees ID
badge and a written reprimand. Termination will occur for the third violation noted and third hole punched in
the employee’s ID badge, provided the third violation occurred within six (6) months of the first. It is not
necessary for the safety violation to be identical for the progressive steps of discipline to apply.

ATTACHMENTS:

ATTACHMENT A: WRITTEN REPRIMAND FORM

ATTACHMENT B: VERBAL REPRIMAND FORM

579614988.doc GENERAL SITE CONDITIONS AND SAFETY PROCEDURES