Health and Safety

1. Code 62/2010 Health and Safety AURA INC MAYO 2008 JANUARY 2010

2. Occupational Health and Safety at the AURA Observatory • AURA has stated that it recognizes that safety is one of its most important concerns, naming it a determinant factor for achieving excellence on all of the work activities carried out at the Observatory. • Together with its Programs and Projects, AURA devotes reasonable effort in the pursuit of continuous improvement of the safety and hygiene conditions throughout the Organization, and to enlist the interest and active participation of workers in this Observatory-wide safety endeavor.

3. The Occupational Health and Accident Prevention Law in Chile • - Law No 16.744 of 1968 - provides the legal framework for the prevention of accidents and for the protection of the health of Chilean workers at their workplace. • The guiding principle of this law is to place the responsibility for the occupational and safety hazards of the work on the social system, financed through a compulsory social insurance contribution made by the employer (Workmen's Compensation.)

4. Mandatory Safety Insurance • 1. The Safety Insurance protects dependant and independent workers, and also students. • 2. The coverage is comprehensive: it involves risk prevention, curative and rehabilitation health aspects. • The affiliation to the system is automatic: • It endorses automatic response services as its ruling principle • It is administered by government and private entities • It is financed by the employer • It mandates accident prevention activities • It originates medical and economical benefits to the worker. • Employers are liable for their employee's (temporary or permanent) insurance premium payments, as well as for students under a contract agreement with their organizations. • The employer has subsidiary responsibility over outsourced workers should a contractor fail to meet its designated legal obligations (e.g. by going bankrupt etc.)..

5. Administration of the Safety Insurance • Private and Public business organizations are compelled to contract the Safety Insurance Policy for their workers (Workmen's Compensation Insurance) with one of the three existing organizations: • two private mutuality organizations, the "Asociacion Chilena de Seguridad" (ACHS) and the "Mutual de Seguridad", and one government organization, the "Instituto de Seguridad del Trabajo". (IST) • These organizations are in charge of administering the funds originated by the payment of insurance premiums that the employers make on behalf of their workers. They provide financing for medical expenses originating in occupational accidents and illnesses (providing disability benefits, medical treatment, rehabilitation, etc.), as well as the payment of disability subsidies, indemnities and pensions. • AURA-O has chosen to Operate with the Mutual de Seguridad.

6. Other Important Juridical Instruments • Labor code. • Decree N° 594, Ministerio de Salud, ruling about basic sanitary and environmental conditions. • Decree Nº 54, Ministry of the Work, regulates the constitution, membership, organization and operation of Safety and hygiene Committees. • Decree Nº 148, about hazardous materials

7. Safety Management • The administration of Safety Policies and compliance activities is the legal responsibility of AURA-O. • The safety Department is led by a part-time Safety engineer (with OSHA accreditation) who counsels and assists the Organization and its Programs with: -Legal aspects of the accident law; -Safety training courses; -Coordination of emergency response plans; -Investigation and analysis of work related accidents;

8. Safety Committees • Safety Committees are by definition”parity” Organizations, which conveys that they comprise the (parity) membership of an equal number of representatives of the Company (designated) and of the workers (elected.) • Article 66 Law 16744 states that in every company or work site, with at least a minimum of 25 workers, a Health and Safety Committee shall be established. The foundation of one or more Health and Safety Committees within any given organization, therefore, depends on the total number of workers at a distinct jobsite or branch office, as long as it is equal to, or in excess of, the stipulated base minimum of 25 workers. • It is also legally feasible to conform a company-wide Committee to oversee and co-ordinate the operation of the diverse worksite committees. • The resolutions adopted by the Safety Committee are deemed binding for the Company and the workers alike.

9. Safety Committees Duties and Responsibilities • To promote adherence to safety practices, rules and regulations. • To assist and instruct the workers on the correct use of protective equipment and wear. • Accident and occupational health investigation. • Adopt hygiene and safety standards to improve safety prevention practices. • Perform the functions designated by the Insurance Administrator Agency. • Promote on the job training.

10. Internal Regulations • Reglamento Internal Orders of Hygiene and Safety • Reglamento Contractors Safety • Reglamento Driving • Reglamento Site Security • Procedure Manuals • Reglamento Guards • Reglamento Personal Protective Equipment • Reglamento Kitchen and Dining Facilities

11. Main Activities of the AOSS Safety Department • Training -Safety (e.g., use of fire fighting equipment, prevention, etc.) 2. Emergency response -Fire -Earthquakes -Accidents -Evacuation -Weather • Miscellaneous -Preparation of documents, statistical reporting, etc.

12. Occupational Health and Hygiene • Medical exams to the staff (hearing, vision, blood pressure, etc.) • Development of Hygiene plans • Control of pests • Control of the quality of drinking water

13. Accident Statistics - Trend

14. Accidents on the Road - Trend

15. Safety Awards and Recognitions • Reduction of premium rates paid to the Mutual de Seguridad to 0,95% per month • Award Mutual de Seguridad -3 times • Award Asociacion Chilena de Seguridad -4 times • Award Interamerican Safety Council -5 times