Kiddieworld Letter

February 17, 2005

Page 1

---M McDuff, Inc.---

12 Peachtree Street

Atlanta, GA30056

(404) 555-7524

February17,2005

Kiddieworld Management Staff

555 Harris Highway

Atlanta, GA30612

Dear Sir or Madam:

INTRODUCTION

I have recently learned that McDuff, Inc. has been selected to work on the upcoming Kiddieworld renovation project. I would like to thank you for selecting us as a contractor for this project and look forward to workingwith you in the near future. I understand that you have requested additional information from McDuff, Inc. about our process to report and investigate accidents because of the potentially hazardous work at this job site. Please find below a description of the process that is used at McDuff, Inc.to report and investigate accidents.

ACCIDENT REPORTING PROCEDURE

Accident reporting procedures are divided into two categories due to the difference in the urgency of the response required. These two categories are minor accidents and major accidents. Minor accidents are defined as accidents that do not involve major loss of equipment or require hospitalization of any individual. Major accidents are defined as accidents that involve a major loss of equipment orhospitalization of an individual is required.

Minor Accidents (no hospitalization and only minor equipment damage)

  1. The site manager is responsible to maintain an up-to-date list of the following phone numbers on the job site at all times:
  2. The office number, cell phone number, FAX number, and home number for the branch safety director.
  3. The office number, cell phone number, FAX number, and home number for the Vice President responsible for safety.
  4. An oral report of all accidents (even minor accidents) is to be made to theMcDuff, Inc. site supervisor as soon as it is possible. The expected timeline for reporting the accident to the site supervisor is from immediately after the accident occurs up to a maximum of 48 hours after the accident occurs.
  5. The site supervisor reviews the information received from the oral report and determines if any immediate actions are required as a result of this accident.
  6. If no immediate actions are required, the site supervisor documents the accident using a McDuff accident report form and sends a copy of the report to thesafety director at the branch office for his or her review.
  7. If the site supervisor determines that immediate actions are required to prevent future occurrences of this type of accident, he or she issues oral instructions to personnel at the site. The site supervisor then documents the accident and the actions taken using a McDuff accident report form and sends a copy of the report to the safety director located at the branch office for his or her review.
  8. The branch safety director reviews the McDuff accident report from the supervisor and forwards a copy to the Vice President responsible for safety at the corporate offices.
  9. The safety director and Vice President jointly review this report at the monthly safety review meeting and determine if an update to the corporate safety policies are required to prevent further accidents of this type. If necessary, a corporate safety bulletin will be issued to all company branches that require this update.

Major Accidents (hospitalization required and/or major loss of equipment)

  1. The site manager is responsible to maintain an up-to-date list of the following phone numbers on the job site at all times:
  2. The office number, cell phone number, FAX number, and home number for the branch safety director.
  3. The office number, cell phone number, FAX number, and home number for the Vice President responsible for safety.
  4. An oral report for all major accidents is to be made to the McDuff, Inc. site supervisor immediately after the accident occurs.The site supervisor reviews the information received from the oral report and determines if any immediate actions are required as a result of this accident.
  5. If no immediate actions are required, the site supervisor either calls or faxes the safety director at the branch office and reports the details of the accident.
  6. If the site supervisor determines that immediate actions are required to prevent future occurrences of this type of accident, he or she issues oral instructions to personnel at the site. The site supervisoreither calls or faxes the safety director at the corporate offices and reports the details of the accident.
  7. The safety director at the branch office either calls or Faxes the Vice President of safety at the corporate offices and reports the details of the accident.
  8. The Vice Presidentthen initiates a conference call with the site supervisor andthe safety director andreviews the details of this accident to determine if an urgent safety bulletin is required to prevent furtheroccurrences of this type of accident in the short term until further investigation of the accident can be completed.If an urgent safety bulletin is required, the Vice President issues an urgent safety bulletin from the corporate office within twenty four hours.
  9. After the oral report has been completed, the site supervisor is responsible forinvestigating this accident, determining the root cause of the accident and documenting the results of the investigation using a McDuff accident report form. He or shewill then send copies of the report to the safety director at the branch office and to the Vice President of safety at the corporate offices.
  10. The Vice President of safety will schedule a safety review meeting within five business days of receiving the McDuff accident report form from the site supervisor. The accident report will be reviewed at this meeting, and a decision will be made if updates to the corporate safety policies are required. If updates to the corporate safety policies are required, they will be documented and distributed within ten working days after the safety review meeting.

CONCLUSION

Preventing accidents that either cause injury to our employees and/or loss of company property is given high priority at McDuff, Inc. The accident reporting procedures listed above have proven to be effective at resolving the cause of accidents and putting procedures in place to prevent future problems. I look forward to working with you on the Kiddieworld renovation project and believe that we can complete this project in a safe and timely manner. If you have any questions or need any additional information, call me at (402) 252-7505.

Sincerely,

John Doe, Project Manager

Copy:Jim Smith, Branch Safety Director

Robert Samuelson, Vice President of safety