NIIGATA SHIPBUILDING & REPAIR, INC. (NSR) SAFETY MANUAL. As of 17th December NIIGATA SHIPBUILDING & REAPIR, INC.

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1 NIIGATA SHIPBUILDING & REPAIR, INC. (NSR) SAFETY MANUAL As of 17th December 2010 NIIGATA SHIPBUILDING & REAPIR, INC. Niigata Shipyard

2 ( I ) NSR SAFETY POLICY (II) SPECIFIC SAFETY PROGRAM (III) SAFETY TRAINING (IV) ACCIDENT REPORTING SYSTEM (V) SAFETY FOR SUBCONTRACTOR (VI) SAFETY INSTRUCTION FOR SUPERINTENDENT

3 (Ⅰ) NSR SAFETY POLICY In accordance with the fundamental policy of respecting human beings, the safety and hygiene rules and regulations of the company are complied. Based on the company s and hygiene rules and regulations, the safety and hygiene standard and manual of Niigata Shipyard is established and annual activity plan / program for the safety and hygiene is drawn up and executed to achieve a zero-accident rate and eliminate a grave accident. The safety policy of NSR Niigata Shipyard is briefly summarized as follows: NSR s Safety and Hygiene Control Program 1. Watch word for safety and health. Foresee danger keeping safety in mind, command yourself health in order. 2. Fundamental policy We try to obtain better record of safety and health (reduction of accident rate in particular), promoting safe and healthy environment in order to exterminate work accident upon the principle of human respect. 3. Main policy (1) Prevention of grave accident and extermination of similar accident a. To promote preventive measures against grave accident i.e. crash accident and fire & explosion accident etc. b. When accident happens, we study the cause more deeply, consider proper and effective countermeasures, establish system to follow up the countermeasure surely, and then prevent occurrence of similar accident. (2) Promotion of safety and health control by means of foreman s positive attitude and independent effort a. We try to perform duty of safety and health thoroughly, clarifying official competence of each foreman, especially in his commanding system and extent of his responsibility.

4 b. We try to prevent accident by mean of consistent work schedule from designing stage, sufficient investigation before starting each work and proper work direction. c. We try to make exhaustive control of safety and health for the spot work. (3) Systematic Promotion of safety and health training and its accompanied movement by the following PLAN-DO-SEE cycle a. KYT movement(danger Foresee Movement) We exterminate accident by well established planning foreseeing how to prevent any possible cause of danger by unsafe action. b. Confirmation action by pointing and speaking out Before staring work, we confirm condition of safety by pointing out the place and speaking out It is OK. c. Hiyari-Hatt proposal system We adopt the reporting system by each worker regarding his actual experience of dangerous situation during the process of the work. On basis of the worker s report, meeting is held to discuss how to avoid such unsafe action and improve the situation following the advice by managers and other staff. We make handbook of such report as common guidance for all workers and use data for planning of Danger Foresee Movement. (4) Promotion of various policies against change of work and work procedure a. When high technology or new work procedure are introduced, we establish and execute measures for safety health from initial planning stage. b. Training of safety and health for workers are carried out and followed up in timely manner. (5) Adjustment and improvement of work environment We adjust and improve work environment by continuous check on noise level, dust etc. to prevent vocational sickness.

5 (II) SPECIFIC SAFETY PROGRAM Safety standards and facilities shall be observed for hull construction including such areas as prim mover and mechanical installation for prevention from fire and explosion, falling of scaffoldings etc. Based on the safety and hygiene standard, we carry out detection of unsafe action especially in the following points. Patrol by general managers of each department Patrol by managers of each section Patrol by guard &security manager Patrol by security control manager Detecting unsafe execution of countermeasures by security control staff Detecting unsafe execution of countermeasures by foreman Patrol by members of workers union Patrol for scaffolding safety by security staff Patrol for fire watching by security staff (III) SAFETY TRAINGS (1) Safety committee meeting a. Every department and section shall hold a committee meeting for safety and health regularly. b. The committee consists of a chairman and members selected both by the company administrative staff and labor union. c. In the committee meeting, items in connection with prevention of employee s injuries as well as health disorders are discussed for promotion of safer measures. (2) General education and re-education for licensed employees a. General education General educational meeting shall be held for the employees in order to make them realize the necessity of safety morning. b. Re-education for licensed employees This training shall be given to those who are already licensed or certified by the authorities concerned in order to improve their techniques and try to get rid of their bad work habits.

6 c. Safety information In order to increase the employee s awareness and understanding, information about safety, health and welfare shall be given regularly to all employees in writing. (3) Job safety standard The standard has been established that good quality of products can be safety and efficiently manufactured without any defects. Presently, accumulated items for such standard are approximately 1,500 in total. (IV) ACCIDENT REPORTING SYSTEM When an accident occurs, the committee meeting shall be held immediately, cause of the accident shall be investigated and final result shall be reported. Referring the results, preventive measures shall be set up in order to avoid the same trouble again. All members of The Shipbuilders Association Japan have the duty to report any major accident happened to order members. (V) SAFETY FOR SUBCONTRACTOR Safety measures for subcontractors are basically complied with those for our company. (VI) SAFETY INSTRUCTION FOR SUPERIDTENDENT 1. Work Suits (1) Wear the proper work clothes. (2) Wear a helmet all the time while working. (3) Wear safety shoes and gaiters all the time while working. 2. Safety Protectors (1) Fasten the chin strap of a helmet. (2) Wear the gloves if necessary. (3) Wear the dust protective mask in the dusty areas. (4) Wear a pair of ear plugs in noisy areas. 3. Smoking (1) Smoking is allowed only admitted place and/or area where ashtrays are placed. (2) Do not smoke while working and walking.

7 (3) Do not throw trash/garbage away into ashtrays. 4. Fire Protection (1) Do not make a fire without permission. 5. Fall Protection (1) Use a safety harness/belt when working on the high position. (2) Do not leave anything on the scaffolds. In case you must leave something on the scaffolds, make sure they are secured and cannot fall. (3) Do not climb vertical ladders with anything in your hands. Carry them with bags on you shoulders. 6. Passage way (1) Walk on the designed passage ways in the shop and on board. 7. Others (1) Do not operate any valves, switches or equipment, unless you are authorized to do so. (2) You may be avoided entering the following areas: (a) Tanks and enclosed areas during paint works (b) Certain areas during scaffolding works (c) Certain areas under the loads lifted by cranes or hoist (d) Certain areas indicated by ropes and/or signs (e) Certain areas around wire ropes under tension (3) Keep the yard clean (a) Do not throw trash/garbage away except the permitted paces. (b) Trash/garbage to be minimized and separated into each type. (c) Do not throw anything away from the deck, the deck side or high position on board. (4) Ride bicycles very carefully and park them in allowed places. Double riding and riding putting an umbrella is prohibited.

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