Mechanical Contractors, Inc. believes that all injuries can be prevented. We are vitally concerned about the losses resulting from on-the-job accidents, both for the individual and the company. Therefore, the prevention of accidents is a major company objective, requiring the active and sincere cooperation of all employees.

Total accident prevention can only be accomplished through the coordinated efforts of all employees. It is our policy that no job or service performed by an employee is so important or urgent that it cannot be performed the safest way. Therefore, all employees, as a condition of employment, must be knowledgeable of and follow the company safety and health requirements.

In addition to the basics of our safety program already in place, we have added the following effective 6/1/04:

• Safety Consultant: We have retained Trip Lawton with Safe-T-Net as an ongoing professional safety advisor. He is currently examining our policies and procedures with a mandate from management to provide a rewritten and customized manual for all operations and exposures that reflect all OSHA regulations and a safe workplace. This includes our Safety Manual, Driver Safety Program, and Hazard Communication Program. These tailored policies will be completed by the end of June 2004.

• Certification: Every Project Manager for Mechanical Contractors will be certified in the OSHA 30 Hour Safety Program. This certification has already been achieved by 90% of project managers and the remaining group is scheduled to complete their course by August.

• Continuing Education: We are now requiring every project manager to obtain an additional 4 hours each year in a Safety Course approved by Mechanical Contractors, Inc. In addition, all Project Managers and all Lead Mechanics are required to attain First Aid / CPR Certification.

• Safety Incentives: Eligible employees can now earn a safety bonus at the end of each year if maintaining a clean safety record through December 31st.

• Safety Committee: We have expanded management’s involvement by moving from a Safety Officer to a Safety Committee which meets regularly. This committee reviews accidents, violations, and the program of incentive and enforcement to make recommendations to management for improvements and changes. Represented on this committee are the Safety Officer, Corporate Officer, Project Manager, Construction Trades Employee, Service Trades Employees, Service Manager, and Raleigh Office Manager.

• Safety Newsletter: New safety issues are presented each quarter as well as acknowledgment of safety awards and accomplishments.

• Safety Inspections: Using their OSHA training, our Project Managers will be providing a safety inspection at least once a week for job sites where we have labor forces. New forms and procedures have been implemented to streamline and document this activity including digital photos of safety issues.

• Bilingual Instruction and Training: Every policy and safety orientation will be provided in the language that each employee is most comfortable with. While we wish all members of our society to learn our common language, we recognize that when it comes to safety, every effort has to be made for education and instruction.