COMPANY POLICY & PROCEDURES DATE IN EFFECT: 3/25/2013 NEW OR REVISED POLICY? NEW PAGE 1 OF 10 POLICY NO.

: HSE-1-2013

Should any Statement of General Policy or Application thereof be in conflict with any Federal, State, or Local Laws or Specific Agreements, such Laws or Agreements must be observed. GENERAL SAFETY RULES INTENT To establish general safety rules and procedures designed to protect employees, Company property, customers, and the general public. These rules are not intended to address any specific operation. Safety rules for specific or specialized Company operations are addressed in their individual sections in this manual or in the Standard Operating Procedures for a specific operating location. ACCOUNTABILITY All management and supervisory personnel are responsible and accountable for the effective communication and enforcement of these safety rules. Employees are accountable for following safety rules and should understand that these rules do not cover all situations, and additional rules or variations of these rules may be required under certain circumstances. EXPECTATIONS Comply with ALL specific safety instructions, operating procedures, posted signs, and instructions given by the supervisor. Also, comply with customer's safety rules, and rules listed below, as applicable. If there is a discrepancy between a customer's rule and a JROD INDUSTRIES, LLC, LLC rule, follow the rule which offers the greatest amount of protection. In no case should the employee do less than what is required by a JROD INDUSTRIES, LLC safety rule.

RULES SUMMARY JROD INDUSTRIES, LLC, LLC 116 E. Lisa Dr. Chaparral, NM 88081 (714) 392-0134

COMPANY POLICY & PROCEDURES DATE IN EFFECT: 3/25/2013 NEW OR REVISED POLICY? NEW PAGE 2 OF 10 POLICY NO.: HSE-1-2013

ALL EMPLOYEES ARE EXPECTED TO: 1. Operate vehicles, equipment, or power tools only when authorized and qualified to do so. 2. Obey ALL prevailing local, state, and federal traffic laws and regulations while operating any vehicle on Company property, in customers' plants, and on public streets and highways. 3. Wear the personal protective equipment prescribed by posted signs, established operating procedures, written instructions, work permits, and rules listed below. Also, employees are required to wear any additional equipment specified by the supervisor or the customer's Safety Department for a particular job task. 4. Know the emergency procedures for your jobsite, location and proper use of fire extinguishers, safety showers, eyewash stations, and other safety equipment in the work area. 5. Smoke only when permitted to do so by JROD INDUSTRIES, LLC policy or prevailing customer plant rules. If smoking is permitted, smoke only in designated smoking areas at designated times. Be sure to check with your supervisor or plant personnel before carrying matches or lighters into any clients facility. 6. Obtain a properly executed Work Permit as required by JROD INDUSTRIES, LLC procedures or established customer plant safety rules. If no permit is offered, ask for one before starting ANY work. 7. A JSA form shall be filled out at the beginning of each work shift for each specific task and anytime a new task is to be started during the work shift. A task will not be performed unless a HOW has been completed. 8. Clean up tools and your work area as your job progresses. If the work tasks cannot be completed by the end of your shift, then clean up your work area before leaving for the day. No job is complete until the area is clear of parts, tools, spilled product, and other debris.

9. Employees are required to be aware of their surroundings at all times, and never allow themselves to be placed directly in the line of fire, between objects which may present a crushing hazard, or beneath employees working overhead without protection from falling JROD INDUSTRIES, LLC, LLC 116 E. Lisa Dr. Chaparral, NM 88081 (714) 392-0134

COMPANY POLICY & PROCEDURES DATE IN EFFECT: 3/25/2013 NEW OR REVISED POLICY? NEW PAGE 3 OF 10 POLICY NO.: HSE-1-2013

materials/debris. Employees must be aware of any/all slip, trip, fall hazards, and other equipment debris, chemicals or objects that may present a hazard to employees, in their work area. 10. Be aware of any potentially hazardous situation. Any questions or comments concerning safety practices or specific unsafe conditions should be directed to your supervisor, the local management or the owners authorized representative. If conditions arise which make it unsafe to proceed with the assigned job, STOP and immediately notify your on-site supervisor. 11. Actively participate in "tail-gate" safety meetings at the job site and regularly scheduled safety meetings at your location. EMPLOYEE CONDUCT Employees are expected to conduct themselves in civilized, orderly manner while on Company property, at any job site, or in a company vehicle, in transit to and from any job site. Employees who are "on the clock" are prohibited from engaging in the following activities: 1. Fighting, horseplay, abusive language, running, or other disruptive activities. 2. Possessing or brandishing a firearm or other weapon. 3. Willful or negligent destruction of property. 4. Theft of property belonging to JROD INDUSTRIES, LLC, customers, or other employees. 5. Neglect of duty (including leaving post of duty without cause or permission and sleeping on duty).

SUBSTANCE ABUSE Employees are prohibited from: 1. Possessing, consuming, dispensing, selling, or reporting to work under the influence of illegal drugs or other illegal substances on Company premises or at any location while acting in the course and scope of employment. JROD INDUSTRIES, LLC, LLC 116 E. Lisa Dr. Chaparral, NM 88081 (714) 392-0134

COMPANY POLICY & PROCEDURES DATE IN EFFECT: 3/25/2013 NEW OR REVISED POLICY? NEW PAGE 4 OF 10 POLICY NO.: HSE-1-2013

2. Possessing, consuming, dispensing, or selling legally prescribed drugs, mind-altering overthe-counter drugs, or alcohol while acting in the course and scope of employment, without proper authorization. 3. Reporting for duty, working, or driving a Company vehicle in an impaired state due to consumption of alcohol or any drug or mind-altering substance, whether legal or illegal 4. Violating any provision of JROD INDUSTRIES, LLCs Substance Abuse Policy or related drug and alcohol policies. INJURY REPORTING 1. ALL on-the-job incidents and injuries, regardless of severity, must be reported promptly to the supervisor. 2. If treatment other than minor first aid is indicated OR if you become aware of a job-related injury after leaving work, notify the General Manager or appropriate member of the management team, and a determination will be made regarding appropriate medical care. VEHICLE SAFETY 1. Only qualified, authorized personnel shall operate any Company vehicle. 2. ALL vehicles shall be driven in a careful, cautious, and courteous manner with full consideration of prevailing traffic conditions, weather conditions, posted signs, and established local, state, and federal traffic laws and regulations. 3. Drivers shall check their assigned vehicle before leaving the yard. Any defect that may cause an accident, injury, or damage to the equipment itself, or that may interfere with the proper function of the equipment at the job site or in transit must be reported to the General Manager or other management representative. The defect must be repaired or replaced before such equipment leaves the yard.

4. Drivers are responsible for the safety of any person riding in or on their vehicle. There shall be no riders on equipment not designed to carry passengers. 5. No person other than JROD INDUSTRIES, LLC employees or persons on official business shall be allowed to ride in any Company service vehicle. No more than three persons may ride in the cab of a truck. Where allowed by plant policy and local law, passengers riding in the back of trucks must keep all parts of their body inside the bed of the truck.

JROD INDUSTRIES, LLC, LLC 116 E. Lisa Dr. Chaparral, NM 88081 (714) 392-0134

COMPANY POLICY & PROCEDURES DATE IN EFFECT: 3/25/2013 NEW OR REVISED POLICY? NEW PAGE 5 OF 10 POLICY NO.: HSE-1-2013

6. ALL JROD INDUSTRIES, LLC employees are required to wear seat belts while driving or riding in any Company vehicle equipped with seat belts. This includes supervisor's vehicles and rental cars while on company business. 7. No JROD INDUSTRIES, LLC service vehicle shall be used to push, tow, or otherwise move a private vehicle. 8. Drivers shall proceed to and from their assigned job using major streets and highways or a route specified by local management. Side trips and unauthorized stops along the way are strictly prohibited. 9. Drivers shall not leave any vehicle unattended unless the engine is off, and the vehicle is safely and securely parked (e.g., tractor and trailer brake activated, placed in low gear, wheels chocked, etc.). 10. Vehicle engines shall not be started or allowed to run while refueling or while exposed to combustible or flammable atmospheres. 11. Drivers are responsible for storing equipment, tools, and other materials in an orderly fashion on the vehicle. Loads shall be secured to avoid shifting or falling. 12. Any load extending beyond the normal width or length of the vehicle shall be appropriately marked with warning signs or flags. No load shall be carried which completely obscures the driver's vision in any direction. 13. Any vehicular accident involving injury to a person or damage to any vehicle, material, or property shall be reported immediately to the supervisor and local management. 14. ALL drivers of DOT regulated vehicles must comply with applicable DOT regulations, including maintaining drivers logs, as required by law. 15. Grounding shall be assured on all liquid vacuum and pneumatic conveyance vehicles and equipment before any material is moved. No material with a flash point of less than 140 degrees Fahrenheit shall be moved with a pneumatic truck (air-mover). HOUSEKEEPING 1. Housekeeping is the responsibility of every JROD INDUSTRIES, LLC employee. No job is complete until the work area is adequately cleaned up.

JROD INDUSTRIES, LLC, LLC 116 E. Lisa Dr. Chaparral, NM 88081 (714) 392-0134

COMPANY POLICY & PROCEDURES DATE IN EFFECT: 3/25/2013 NEW OR REVISED POLICY? NEW PAGE 6 OF 10 POLICY NO.: HSE-1-2013

2. All trash and scrap material shall be placed in proper containers promptly. 3. Emergency equipment and building exits must be accessible at all times. 4. All tools shall be returned to proper storage areas or toolboxes after use. 5. Work areas, vehicles, and change houses must be kept clean. Personal clothing and materials shall be stored in lockers, if provided for that purpose. Company tools and materials shall not be stored in employees lockers without specific management authorization. 6. Supervision will audit all work areas prior to, and during work being performed. Supervision will insure that proper housekeeping is being followed. HAND TOOLS AND POWER TOOLS 1. All employees are expected to know and use the proper tool for the job at hand. If you are not sure, ask your supervisor. 2. All tools shall be inspected before use. Any defective tool shall be removed from service and brought to the attention of the supervisor. 3. Guards on power tools, such as grinders (either portable or fixed), shall not be removed for any reason. 4. Power impact tools shall not be operated unless the retainer ring and/or pin are in place and the head is against a solid object to prevent the head from being thrown off.

5. Pneumatic tools shall never be connected to anything but a plant air source or portable air compressor. Always check with plant personnel before connecting any tool to an energy source. 6. Trigger Locking Mechanisms "Dead Man Switches" should not be tied down or otherwise tampered with at any time. 7. Explosion proof wiring systems shall be used in conjunction with all electrical power tools in areas where flammable gases and vapors, combustible dusts, or ignitable fibers may be present in the air in quantities sufficient to produce explosive or ignitable mixtures.

JROD INDUSTRIES, LLC, LLC 116 E. Lisa Dr. Chaparral, NM 88081 (714) 392-0134

COMPANY POLICY & PROCEDURES DATE IN EFFECT: 3/25/2013 NEW OR REVISED POLICY? NEW PAGE 7 OF 10 POLICY NO.: HSE-1-2013

8. All electrical equipment must be properly grounded. Portable electrically powered tools shall be used with properly sized and functioning ground fault circuit interrupting (GFCI) devices. The device should be located at the power source to protect the hand tool(s) and also the extension cord(s) if used. GFCI devices shall be used on fueled welding machines when powering hand tools such as grinders. 9. When utilizing an Assured Grounding Conductor Program each business unit is responsible for quarterly inspections (see Section #17 in the HSE Manual for details). OVERHEAD WORK 1. A ladder or scaffolding shall be used when the work to be done cannot be performed without reaching overhead. 2. No material shall be thrown or dropped from elevated places unless the area is properly barricaded and clearly marked to warn personnel who may be in the area. 3. No tools or other materials shall be carried by hand when climbing a ladder. A tag line shall be used to raise and lower tools and other materials to elevated places. 4. When working in elevated locations, all tools, supplies, and equipment shall be placed and/or secured so that such equipment will not fall or present a tripping hazard. 5. Full body harnesses and lanyard shall be used when working in elevated locations where scaffolds and platforms equipped with guardrails are not feasible or practical.

6. Straight or extension ladders shall be securely lashed near the point of support to prevent the ladder from swaying or falling. (Someone must secure the ladder by hand while this is being done). ISOLATED WORK CREWS (COMMUNICATIONS) Crews isolated from general work areas shall be provided with communication equipment (i.e., mobile telephone, company two-way radios, or client supplied two-way radios) to maintain continuous communication. This will provide isolated work crews with immediate communication in the event of an emergency and will allow the crew to relay equipment needs to appropriate personnel.

JROD INDUSTRIES, LLC, LLC 116 E. Lisa Dr. Chaparral, NM 88081 (714) 392-0134