MARINE HEALTH, SAFETY, QUALITY, AND ENVIRONMENTAL MANAGEMENT

Guide for Marine Health, Safety, Quality and Environmental Management GUIDE FOR MARINE HEALTH, SAFETY, QUALITY, AND ENVIRONMENTAL MANAGEMENT AUGUST 2009 (Updated November 2010 ee next page) American Bureau of Shipping Incorporated by the Legilature of the State of New York 1862 Copyright 2009 American Bureau of Shipping ABS Plaza 16855 Northchae Drive Houton, TX 77060 USA

Update November 2010 conolidation include: July 2010 verion plu Corrigenda/Editorial July 2010 conolidation include: March 2010 verion plu Notice No. 2 and Corrigenda/Editorial March 2010 conolidation include: Augut 2009 verion plu Notice No. 1

Foreword Foreword The ignificant impact of management practice on the afe operation of hip ha been recognized for ome time. The General Aembly of the International Maritime Organization requeted the Maritime Safety Committee, by reolution A.596(15), to develop, a a matter of urgency, guideline concerning hipboard and hore-baed management, and to include in the work program of both the Maritime Safety Committee and the Marine Environment Protection Committee an item on hipboard and hore-baed management for the International Safety Management Code (ISM Code). The ISM Code wa developed by the International Maritime Organization to provide the maritime community with an internationally recognized tandard for the afe management and operation of hip and for pollution prevention. Initially adopted a reolution A. 741(18), it later wa incorporated into Chapter IX of the SOLAS convention and became mandatory for oil tanker, chemical tanker, bulk carrier and cargo high peed craft of 500 gro tonnage and upward and for paenger hip including paenger high-peed craft from 1 July 1998. Other cargo hip and elf-propelled mobile offhore drilling unit (MODU) of 500 gro tonnage and upward, ubject to SOLAS, were required to comply by 1 July 2002. Other management ytem tandard have been developed, notably ISO 9001, ISO 14001 and OHSAS 18001, non-pecific to the maritime indutry, which addre management practice from the perpective of controlling quality, occupational health hazard and environmental impact. Thee tandard, though not pecific to the marine indutry, provide ueful guidance that can be employed in marine management and the operation of hip to further enhance management ytem focued on the afe operating practice and prevention of pollution. The general management ytem principle embodied by the ISM Code, ISO 9001, ISO 14001 and OHSAS 18001 have been incorporated in thi Guide. Thee principle, where appropriate, have been marinized in order to bring them within the concept of the indutry itelf. In thi reviion of the Guide, change to the Standard for Quality Management Sytem Requirement (ISO 9001:2008) have been taken into account. The 2008 edition of the ISO 9001 Standard i focued on clarification of the ISO 9001:2000 Standard. The tandard wa amended to clarify point within the text and to enhance compatibility with ISO 14001:2004. Alo amendment to the ISM Code contained in IMO Re. MSC.273(85) have been incorporated. ABS offer thi Guide to the maritime indutry a a tool for enhancing marine management practice and further upporting reponible management in the operation of hip and prevention of pollution. ABS GUIDE FOR MARINE HEALTH, SAFETY, QUALITY, AND ENVIRONMENTAL MANAGEMENT. 2009 iii

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Table of Content GUIDE FOR MARINE HEALTH, SAFETY, QUALITY, AND ENVIRONMENTAL MANAGEMENT CONTENTS SECTION 1 General... 1 1.1 Scope and Application...1 1.2 Certification...3 1.2.1 General...3 1.2.2 Certification Proce...4 1.2.3 Repreentation...4 1.2.4 Termination...5 1.2.5 Audit Guideline...5 1.3 Definition...5 SECTION 2 Policy... 9 2.1 General Requirement...9 2.2 Occupational Health, Safety, and Environmental Policy...9 2.3 Quality Policy...10 SECTION 3 Planning... 11 3.1 Environmental Apect...11 3.2 Hazard Identification, Rik Aement, and Rik Control...11 3.3 Legal and Other Requirement...12 3.4 Health, Safety, and Environmental Objective and Target...13 3.5 Quality Planning and Objective...14 3.6 Cutomer Focu...14 3.6.1 General...14 3.6.2 Determination of the Requirement Related to Management of Ship (other ervice)...15 3.6.3 Cutomer Communication...15 3.6.4 Cutomer Record...15 3.7 Management Program...15 3.7.1 General...15 3.7.2 Management Commitment...16 3.7.3 Management Sytem Documentation...16 ABS GUIDE FOR MARINE HEALTH, SAFETY, QUALITY, AND ENVIRONMENTAL MANAGEMENT. 2009 v

SECTION 4 Implementation and Operation... 19 4.1 Reource, Role, Reponibility, Accountability, and Authority... 19 4.2 Deignated Peron()/Quality Management Repreentative/Environmental Management Repreentative()/OH&S Management Repreentative... 20 4.3 Mater Reponibility and Authority... 20 4.4 Shipboard Peronnel... 21 4.4.1 Mater Qualification and Support... 21 4.4.2 Crew... 21 4.5 Competence, Training, and Awarene... 21 4.5.1 General... 21 4.5.2 Management Sytem Awarene Training... 22 4.5.3 Familiarization Training... 22 4.6 Communication, Participation, and Conultation... 23 4.7 Control of Document... 23 4.8 Operational Control... 24 4.9 Purchaing... 26 4.9.1 General... 26 4.9.2 Evaluation of Supplier... 26 4.9.3 Purchaing Information... 26 4.9.4 Verification of Purchaed Material or Service... 27 4.10 Cutomer Property... 27 4.11 Preervation of Service... 27 4.12 Traceability... 27 4.13 Maintenance of the Ship and Equipment... 27 4.13.1 General... 27 4.13.2 Inpection... 37 4.13.3 Critical Equipment and Sytem... 28 4.14 Emergency Preparedne and Repone... 28 4.14.1 General... 28 4.14.2 Emergency Plan... 28 4.14.3 Drill and Exercie... 28 SECTION 5 Meaurement, Analyi, and Improvement... 29 5.1 Monitoring and Meaurement... 29 5.1.1 General... 29 5.1.2 Monitoring and Meaurement... 30 5.1.3 Inpection and Tet Record... 30 5.1.4 Control of Monitoring and Meauring Equipment (MME)... 30 5.1.5 Analyi of Meaurement and Improvement... 31 5.2 Control of Nonconforming Material, Equipment, or Cargo Space... 32 5.3 Nonconformity, Incident Invetigation, Corrective and Preventive Action... 32 5.4 Control of Record... 34 5.5 Internal Audit... 34 vi ABS GUIDE FOR MARINE HEALTH, SAFETY, QUALITY, AND ENVIRONMENTAL MANAGEMENT. 2009

SECTION 6 Management Review... 37 APPENDIX 1 Correpondence Between ISM Code, ISO 9001:2008 & ISO 14001:2004, OHSAS 18001:2007, and ABS HSQE Guide... 39 APPENDIX 2 Supplemental Requirement of the ISM Code... 43 APPENDIX 3 Term and Condition for the Ue of ABS SMS Certified and ABS HSQE Certified Logo... 47 ABS GUIDE FOR MARINE HEALTH, SAFETY, QUALITY, AND ENVIRONMENTAL MANAGEMENT. 2009 vii

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Section 1: General GUIDE FOR MARINE HEALTH, SAFETY, QUALITY, AND ENVIRONMENTAL MANAGEMENT 1 GENERAL 1.1 Scope and Application The ABS Guide for Marine Health, Safety, Quality and Environmental Management ha been developed with the objective of aiting hipowner, manager, and operator to improve the afety and environmental performance in the management and operation of hip. ABS recognize the poitive impact that ound management practice have upon thee area of concern. Thi Guide provide the maritime indutry with a model for implementation of management ytem concerned with thee iue. Thi Guide i intended for the ue of Companie operating all type of hip. It requirement have been tated in general term in order to have application to a wide variety of hip operation and management tyle. The requirement of thi Guide have been largely derived from the ound management ytem principle reflected in the requirement of the International Management Code for the Safe Operation of Ship and for Pollution Prevention (alo known a the International Safety Management Code, or more commonly a the ISM Code ), Quality management ytem Requirement (ISO 9001:2008), Environmental management ytem Requirement with guideline for ue (ISO 14001:2004), and Occupational health and afety management ytem Requirement (OHSAS 18001:2007). Though the requirement of thi Guide have been intended to encompa the requirement of thee referenced tandard, uer of thi Guide are encouraged to obtain for themelve copie of thee tandard for reference. Thee tandard and other aociated with them, contain valuable information and guidance ueful in undertanding the fundamental and implementation of viable management ytem. Though thi Guide ha been developed principally a a management ytem model for occupational health, afe operation, prevention of pollution and preervation of the environment, quality concern are alo addreed. While quality management focue principally upon enhancing cutomer atifaction and encouraging fulfillment of cutomer requirement for quality, ABS conider that the employment of quality principle can have a ignificant poitive impact on achieving goal and objective in the area of afety and environmental management. The quality ytem requirement of thi Guide provide precription that are intended to help enhance a health, afety, and environmental management ytem effectivene. ABS GUIDE FOR MARINE HEALTH, SAFETY, QUALITY, AND ENVIRONMENTAL MANAGEMENT. 2009 1

Section 1 General Note: Thi Guide ha excluded ection 7.3 of the ISO 9001:2008 tandard, Deign and Development. It i recommended that thi element of the ISO tandard hould not be excluded from the Company management ytem if they have any input to the deign of a veel they are building, intend to build or a veel they are modifying to their pecific requirement. Companie applying for certification to thi Guide may not be required to have thi element in the cope of their audit. Any other excluion ought by Companie to thi Guide hould be jutified in the Management Sytem Documentation (ee 3.7.3) only within the following claue: 3.5.1, 3.6.2, 3.6.3, 3.6.4, 4.9, 4.10, 4.11, 4.12 and 5.1.4, and then only if it i a q only requirement. Thi Guide i deigned to facilitate a progreive approach to an integrated management ytem of occupational health, afety, quality and environmental concern. The Guide identifie requirement in four categorie. The categorie are identified to the left of the correponding requirement by an, q, e or h and are explained below. Requirement identified by an are afety management requirement. Thee requirement are baed mainly upon the requirement of the ISM Code but alo include additional precriptive requirement that ABS conider will enhance achieving goal and objective within thi area. Safety management requirement provide the baeline requirement of thi Guide and contain a number of requirement alo applicable to quality and environmental management. Thee requirement addre environmental management concern from a regulatory compliance perpective. Requirement identified by a h are occupational health management requirement that hould be implemented together with the requirement in order to properly manage both occupational health and afety management concern. Occupational health requirement, in combination with a number of the afety requirement, addre iue of concern embodied by OHSAS 18001:2007. Additionally, precriptive requirement have been included that ABS conider can enhance achieving goal and objective within the combined area of occupational health and afety management. Requirement identified by a q are quality management requirement that hould be implemented together with the requirement in order to properly manage both afety and quality management concern. Quality management requirement in combination with a number of the afety requirement addre iue of concern embodied by ISO 9001:2008. Additionally, precriptive requirement have been included that ABS conider can enhance achieving goal and objective within the combined area of afety and quality management. Requirement identified by an e are environmental management requirement that hould be implemented in addition to the requirement in order to properly manage both afety and environmental management concern. Environmental management requirement in combination with a number of the afety management requirement addre iue of concern embodied by ISO 14001:2004. Additionally, precriptive requirement have been included that ABS conider can enhance achieving goal and objective within the area of afety and environmental management. Thee requirement addre environmental concern from the perpective of both regulatory compliance and proactive continual improvement of the management ytem and environmental performance. 2 ABS GUIDE FOR MARINE HEALTH, SAFETY, QUALITY, AND ENVIRONMENTAL MANAGEMENT. 2009

Section 1 General Companie may chooe to implement the combination of requirement uitable to their Company goal, objective and concern. ABS encourage all companie to conider implementation of the Guide requirement in their entirety a a comprehenive approach to health, afety quality and environmental management. (1 July 2010) The cope of certification (SQ/SE/HS/SQE/HSE/HSQ/HSQE) choen for the Company office hould be implemented acro all veel in the fleet regardle of the cope of certification and notation requeted for each individual veel (ee ection 1.2 below). At leat one veel of each type hould be preented a ample and maintain certification to the ame cope of certification a the company' office. A an aid to aiting client with the implementation of a comprehenive approach, ABS ha alo produced the ABS Guidance Note for the Invetigation of Marine Incident. While one goal of effective afety management i to reduce or eliminate incident, accident or near-mie, event may occur from time to time. Under uch condition, a Company i well erved when it can learn from uch event and ue the leon to minimize the potential for future loe. The ABS Guidance Note for the Invetigation of Marine Incident outline how incident can be invetigated and their root caue determined. The Guidance Note alo provide form and checklit for ue during an invetigation. Thee Guidance Note can be downloaded from the ABS webite at http://www.eagle.org/rule/download.html. Together with the Marine Health, Safety, Quality and Environmental Management Guide, the ABS Guidance Note for the Invetigation of Marine Incident can be ued to addre a range of objective of health, afety, quality and environmental management program. 1.2 Certification 1.2.1 General Companie may requet certification to the requirement of thi Guide from ABS. Certification i available to: 1. The afety requirement; 2. Safety and quality requirement; 3. Safety and environmental requirement; 4. Safety and health requirement; 5. Safety, quality and environmental requirement; 6. Safety, health, and quality requirement; 7. Safety, health, and environmental requirement, and 8. Safety, health, quality, and environmental requirement Companie eeking certification to thi Guide mut, a a condition of certification, conform to the requirement of the ISM Code, ISO 9001:2008, ISO 14001:2004 and OHSAS 18001:2007, a relevant to the elected cope of their management ytem. Additionally, certification to the health, quality, and environmental criteria require a Stage I (adequacy to proceed) and Stage II (certification) approach. Ship certified to the requirement of thi Guide hall, a a prerequiite, be claed by ABS or another claification ociety holding an IACS QSCS certificate. Certification to thi Guide hall be adminitered in the ame manner a ISM Code certification. Veel hall normally be aeed in accordance with the uual audit frequency precribed for ISM Code certification. ABS GUIDE FOR MARINE HEALTH, SAFETY, QUALITY, AND ENVIRONMENTAL MANAGEMENT. 2009 3

Section 1 General Thi Guide i ubject to review and reviion. Update may include, among other thing, additional requirement, or clarification of exiting requirement. Companie certified to the requirement of thi Guide hall be required to comply with the change within one year after their publication. A Company that i aeed by ABS and found to meet the requirement pecified in thi Guide may be iued a correponding certificate. Veel operating under the Company management ytem that are aeed by ABS and found to meet the requirement pecified in thi Guide may be iued correponding certificate, and where ABS claed, correponding notation in the ABS Record. All certificate are ubject to periodic and intermediate verification conducted at each certified location. All certification are non-tranferable. Aement are baed upon a ampling proce. The abence of recorded nonconformitie doe not mean that none exit. Nothing contained herein or in any certificate, notation, or report iued in connection with a certificate and/or notation i intended to relieve any deigner, builder, Owner, manufacturer, eller, upplier, repairer, operator, inurer, or other entity of any duty to inpect or any other duty or warranty, expre or implied, nor to create any interet, right, claim, or benefit in any inurer or other third party. 1.2.2 Certification Proce Companie eeking certification to the requirement of thi Guide hall fulfill the following reponibilitie, ome of which are more fully decribed in ubequent ection of the Guide: a. Document, implement, and maintain a marine management ytem in accordance with the pertinent requirement of thi Guide. b. Inform ABS in writing of major change to management ytem element (e.g., managerial organizational tructure, location, change in type of veel operated, upgrade/downgrade of proce capability, control, or flow) o that the change may be evaluated by ABS and appropriate action taken. c. Provide ABS copie of pertinent management ytem documentation for review. d. Allow ABS acce to all certified location and veel during normal working hour in order to ae the marine management ytem to determine continuing compliance with the pertinent requirement of thi Guide. e. Maintain a record of all complaint received regarding the quality of ervice, occupational health and afety, environmental pollution, and the reolution thereof. f. Notify ABS of port tate detention of veel() certified. g. Inform ABS in writing when a Document of Compliance (DOC), iued by a Flag Adminitration or a Recognized Organization (other than ABS), i withdrawn or invalidated by the iuing party affecting veel certified to thee requirement. 4 ABS GUIDE FOR MARINE HEALTH, SAFETY, QUALITY, AND ENVIRONMENTAL MANAGEMENT. 2009

Section 1 General 1.2.3 Repreentation Certification i a repreentation by ABS that at the time of aement the Company and veel, a pertinent, had etablihed and implemented a management ytem in accordance with the requirement in thi Guide for the pecified certificate and notation. Certification i not a repreentation that the Company alway act in compliance with the management ytem or that the management ytem addree all contingencie. Management performance remain the reponibility of the Company. 1.2.4 Termination The continuance of certification or any notation i conditional upon the Company and veel continued compliance with the pertinent requirement of thi Guide. ABS reerve the right to reconider, withhold, upend, or cancel the certification or notation for noncompliance with the requirement, refuing acce for an aement or verification, or nonpayment of fee which are due on account of certification and other ervice. 1.2.5 Audit Guideline For aement involving Q, E or H certification, pre-aement (tage I audit) are mandatory and the range and cope of the pre-aement i determined by the deignated Standard which require that a minimum pre-aement of the client office and of one hip operated by the client. Pre-aement are optional for S only aement. The range and cope of optional pre-aement i determined by the client. 1.3 Definition The definition lited below are taken, or adapted from the ISM Code, ISO 9001:2008, ISO 14001:2004, and OHSAS 18001:2007. Acceptable rik rik that ha been reduced to a level that can be tolerated by the Company having regard to it legal obligation and it own OH&S policy. Adminitration the Government of the State whoe flag the hip i entitled to fly. Anniverary Date the day and month of each year that correpond to the date of expiry of the relevant document or certificate. Audit ytematic, independent, and documented proce for obtaining audit evidence and evaluating it objectively to determine the extent to which audit criteria are fulfilled. Auditor peron with the competence to conduct an audit. Certification the deciion by ABS that the Company management ytem meet the applicable requirement of the ABS Guide. Company the Owner of the hip or any other organization or peron, uch a the manager or the bareboat charterer, who ha aumed the reponibility for operation of the hip from the hipowner and who, on auming uch reponibility, ha agreed to take over all dutie and reponibilitie impoed by the ISM Code. Company = Organization [ISO 9001:2008, ISO 14001:2004, and OHSAS 18001:2007] ABS GUIDE FOR MARINE HEALTH, SAFETY, QUALITY, AND ENVIRONMENTAL MANAGEMENT. 2009 5

Section 1 General Continual improvement recurring proce of enhancing the management ytem in order to achieve improvement in overall performance conitent with the Company tated policie for health, afety, quality, and pollution prevention, a applicable. Convention mean the International Convention for Safety of Life at Sea, 1974, a amended. Corrective Action action to eliminate the caue of detected nonconformity or other undeirable ituation. Cutomer Company or peron that receive a product or ervice. A charterer i conidered a Cutomer. Cutomer atifaction perception of the degree to which the Cutomer requirement have been fulfilled. DOC Document of Compliance certificate Document information and it upporting medium. Environment urrounding in which a Company and it hip operate, including air, water, land, natural reource, flora, fauna, human, and their interrelation. Environmental apect element of a Company activitie or product or ervice that can interact with the environment. Environmental impact any change to the environment, whether advere or beneficial, wholly or partially reulting from a Company environmental apect. Environmental objective overall environmental goal, conitent with the environmental policy, that a Company et itelf to achieve, and which i quantifiable where practicable. Environmental management ytem part of a Company management ytem ued to develop and implement it environmental policy and manage it environmental apect Environmental performance meaurable reult of a Company management of it environmental apect. Environmental target detailed performance requirement, quantified where practicable, applicable to the Company or it hip, that arie from the environmental objective and that need to be et and met in order to achieve thoe objective. Hazard ource, ituation or act with a potential for harm, in term of injury or ill health, damage to property, damage to workplace environment or a combination of thee. Hazard identification proce of recognizing that a hazard exit and defining it characteritic. Ill health identifiable advere phyical or mental condition ariing from and/or made wore by a work activity and/or work-related ituation. 6 ABS GUIDE FOR MARINE HEALTH, SAFETY, QUALITY, AND ENVIRONMENTAL MANAGEMENT. 2009

Section 1 General Infratructure ytem of facilitie, equipment, and ervice needed for the operation of the Company. Incident work-related event() in which an injury or ill health (regardle of everity) or fatality occurred or could have occurred. Internal audit ytematic, independent, and documented proce for obtaining audit evidence and evaluating it objectively to determine the extent to which the management ytem audit criteria et by the Company are fulfilled Intereted Partie peron or group, inide or outide the workplace, concerned with or affected by the performance of the Company. International Safety Management (ISM) Code mean the International Management Code for the Safe Operation of Ship and for Pollution Prevention a adopted by the Aembly, a may be amended by the Organization. Major non-conformity (1 July 2010) mean the identifiable deviation that poe a eriou threat to the afety of peronnel or the hip or a eriou rik to the environment that require immediate corrective action or the lack of effective and ytematic implementation of the requirement of the Code. Non-conformity mean an oberved ituation where objective evidence indicate the non-fulfillment of a pecified requirement. Notation notation in the ABS Record upon certification to recognize that the ABS claed veel meet the applicable requirement of thi Guide for: Safety Certification (S) Safety and Environmental Certification (SE) Safety and Health Certification (HS) Safety and Quality Certification (SQ) Safety, Quality, and Environmental Certification (SQE) Safety, Health, and Environmental Certification (SHE) Safety, Health, and Quality Certification (SHQ) Health, Safety, Quality, and Environmental Certification (HSQE) Objective a goal tated in term of the management ytem performance, that the company et itelf to achieve. Objective evidence mean quantitative or qualitative information, record, or tatement of fact pertaining to afety or to the exitence and implementation of a afety management ytem element, which i baed on obervation, meaurement, or teting that can be verified. Obervation mean a tatement of fact made during a management audit and ubtantiated by objective evidence. Occupational health and afety (OH&S) condition and factor that affect, or could affect, the health and afety of employee, temporary worker, contractor peronnel, viitor, and any other peron in the workplace. ABS GUIDE FOR MARINE HEALTH, SAFETY, QUALITY, AND ENVIRONMENTAL MANAGEMENT. 2009 7

Section 1 General Performance meaurable reult of the company management of it impact and/or rik and achievement of it objective. Policy overall intention and direction of a Company related to it performance a formally expreed by the top management. Preventive action action to eliminate the caue of a potential non-conformity or other undeirable potential ituation. Prevention of pollution ue of procee, practice, technique, material, product, ervice, or energy to avoid, reduce, or control (eparately or in combination) the creation, emiion, or dicharge of any type of pollutant or wate in order to reduce advere environmental impact. Procedure pecified way to carry out an activity or a proce. Record document tating reult achieved or providing evidence of activitie performed. Requirement a need or expectation generally tated, generally implied or obligatory Rik combination of the likelihood of an occurrence of a hazardou event or expoure() and the everity of injury or ill health that can be caued by the event or expoure(). Rik aement overall proce of evaluating the rik(), ariing from a hazard(), taking into account the adequacy of any exiting control, and deciding whether or not the rik() i acceptable. Safety apect element of a Company activitie or ervice that repreent an actual or potential rik to afety or peronnel, or the hip. SMC Safety Management Certificate. Supplier Company or peron that upplie a product or ervice. Sytem et of interrelated or interacting element required to direct and control a Company. Top management peron() who direct or control a Company. Work environment et of condition or phyical location, under control of the Company, in which the work and related activitie are performed. In thi document, text that appear in italic i taken directly from the cited tandard. Text in tandard font comprie the ABS recommendation and requirement. 8 ABS GUIDE FOR MARINE HEALTH, SAFETY, QUALITY, AND ENVIRONMENTAL MANAGEMENT. 2009

Section 2: Policy GUIDE FOR MARINE HEALTH, SAFETY, QUALITY, AND ENVIRONMENTAL MANAGEMENT 2 POLICY 2.1 General Requirement 2.1.1 The Company to be certified hould etablih, document, implement, maintain, and continually improve a management ytem to the relevant requirement of thi Guide and fulfill thee requirement a pecified therein. The Company hould define and document the cope of certification of it management ytem. 2.1.2 The Company top management hould etablih, document and maintain pertinent policy(ie) for Occupational Health, Safety, Quality, and Environmental Protection in accordance with and appropriate to the management ytem. 2.1.3 The Company hould require that the policy i communicated, implemented, undertood, and maintained at all level of the organization, both hip-baed and hore-baed. 2.2 Occupational Health, Safety, and Environmental Policy 2.2.1 The afety and environmental-protection policy hould decribe how the objective of the management ytem will be achieved. Thee objective a a minimum, hould be to promote afety at ea, prevention of human injury or lo of life, and avoidance of damage to the environment, in particular to the marine environment and to property. 2.2.2 Top management hould define and authorize the Company policy(ie) and require that, within the defined cope of it management ytem, it: a. hould provide for afe practice in hip operation and a afe working environment; (ISM 1.2.2.1) b. include a commitment to continual improvement, and prevention of pollution ; (ISO 14001:2004 4.2.b) c. (1 July 2010) hould ae all identified rik to it hip, peronnel and the environment and etablih appropriate afeguard ; (ISM 1.2.2.2) d. hould continuouly improve afety management kill of peronnel ahore and aboard hip, including preparing for emergencie related both to afety and environmental protection. ; (ISM 1.2.2.3) ABS GUIDE FOR MARINE HEALTH, SAFETY, QUALITY, AND ENVIRONMENTAL MANAGEMENT. 2009 9

Section 2 Policy e. include a commitment to at leat comply with applicable legal requirement, and with other requirement to which the organization ubcribe that relate to it OH&S hazard and to it environmental apect (OHSAS 18001:2007 4.2c, ISO 14001:2004 4.2.c) h f. include a commitment to prevention of injury and ill health and continual improvement in OH&S management and OH&S performance ; (OHSAS 18001:2007 4.2.b) eh g. i communicated to all peron working for and on behalf and under the control of the organization with the intent that they are made aware of their individual health and afety obligation. (OHSAS 18001:2007 4.2.f, ISO 14001:2004 4.2f) eh 2.2.3 Top management hould define the Company policy and require that it i appropriate to the nature, cale, and environmental impact of the Company hore-baed and hipboard rik, activitie, and ervice. qeh 2.2.4 The HSQE policy, a appropriate hould provide a framework for etting and reviewing quality, environmental, and OH&S objective and target and hould be made available to the public and the Company cutomer, vendor and upplier. q 2.3 Quality Policy 2.3.1 Top management hall enure that the quality policy: (ISO 9001:2008 5.3) a. i reviewed for continuing uitability; b. include a commitment to comply with requirement and continually improve the effectivene of the quality management ytem 2.3.2 The Company organizational goal and expectation hould be monitored, meaured and analyzed by it management to verify that the procee are implemented effectively. 10 ABS GUIDE FOR MARINE HEALTH, SAFETY, QUALITY, AND ENVIRONMENTAL MANAGEMENT. 2009

Section 3: Planning GUIDE FOR MARINE HEALTH, SAFETY, QUALITY, AND ENVIRONMENTAL MANAGEMENT 3 PLANNING 3.1 Environmental Apect e 3.1.1 The Company hould etablih, implement, and maintain procedure() to identify the environmental apect of it hipboard and hore-baed operation within the cope of the environmental management ytem that it can control and thoe it can influence, taking into account planned or new development or new or modified activitie and ervice. The Company hould determine which environmental apect have or can have a ignificant impact on the environment. The Company hall document thi information and keep it up-to-date. e 3.1.2 The Company hould take into account the ignificant environmental apect when etablihing, implementing, and maintaining it environmental management ytem. h 3.2 Hazard Identification, Rik Aement, and Rik Control (OHSAS 18001:2007 4.3.1) h 3.2.1 The Company hall etablih and maintain procedure for the ongoing hazard identification, rik aement, and determination of neceary control. The procedure() for hazard identification and rik aement hall take into account: a. routine and non-routine activitie; b. activitie of all peronnel having acce to the workplace (including ubcontractor and viitor); c. human behavior, capabilitie, and other human factor; d. identified hazard originating outide the workplace capable of adverely affecting the health and afety of peron under the control of the Company within the workplace; e. hazard created in the vicinity of the workplace by work-related activitie under the control of the Company; f. infratructure, equipment, and material at the workplace, whether provided by the Company or other; ABS GUIDE FOR MARINE HEALTH, SAFETY, QUALITY, AND ENVIRONMENTAL MANAGEMENT. 2009 11

Section 3 Planning g. change or propoed change in the Company, it activitie, or material; h. modification to the OH&S management ytem, including temporary change, and their impact on operation, procee, and activitie; i. any applicable legal obligation relating to rik aement and implementation of neceary control; and j. the deign of work area, procee, intallation, machinery/equipment, operating procedure, and work organization, including their adaptation to human capabilitie. h 3.2.2 The Company methodology for hazard identification and rik aement hall: a. be defined with repect to it cope, nature, and timing to enure it i proactive rather than reactive; and b. provide for the identification, prioritization, and documentation of rik and the application of control, a appropriate. h 3.2.3 For the management of change, the Company hall identify the OH&S hazard and OH&S rik aociated with change in the Company, the OH&S management ytem, or it activitie, prior to the introduction of uch change. h 3.2.4 The Company hall enure that the reult of thee aement are conidered when determining control. h 3.2.5 When determining control, or conidering change to exiting control, conideration hall be given to reducing the rik according to the following hierarchy: a. elimination. b. ubtitution. c. engineering control. d. ignage/warning and/or adminitrative control. e. peronal protective equipment. h 3.2.6 The Company hall document and keep the reult of identification of hazard, rik aement and determined control up-to-date.: h 3.2.7 The Company hall enure that the OH&S rik and determined control are taken into account when etablihing, implementing, and maintaining it management ytem. 3.3 Legal and Other Requirement 3.3.1 The Company hould etablih, implement, and maintain a documented procedure: a. to identify mandatory rule and regulation applicable to both hip and hore-baed operation; b. to identify applicable code, guideline, and tandard recommended by the IMO, Adminitration, claification ocietie, and maritime indutry organization; 12 ABS GUIDE FOR MARINE HEALTH, SAFETY, QUALITY, AND ENVIRONMENTAL MANAGEMENT. 2009

Section 3 Planning eh eh c. for identifying and acceing the legal and other requirement to which the Company ubcribe that are applicable to it OH&S requirement and Environmental apect, and d. for periodically evaluating compliance at leat once every 12 month with applicable legal requirement and other requirement to which the Company ubcribe. The Company hall keep record of the reult of the periodic evaluation. eh 3.3.2 The Company hould take into account applicable legal requirement and other requirement to which the Company ubcribe in etablihing, implementing and maintaining it OH&S and environmental management ytem. The Company hould keep thi information up-to-date. h 3.3.3 The Company hall communicate relevant information on legal and other requirement to peron working under control of the Company, and other relevant intereted partie. (OHSAS 18001:2007 4.3.2) 3.4 Health, Safety, and Environmental Objective and Target e 3.4.1 The Company hould etablih, implement, and maintain documented environmental objective and target at each relevant function and level within the hore-baed and hipboard organization. (See 5.4) Reponibility for achieving thee objective and target hall alo be identified and documented. h 3.4.2 The Company hould etablih, implement, and maintain documented occupational health and afety objective and target, at each relevant function and level within the Company. 3.4.3 When etablihing and reviewing it management ytem objective, the Company hould: e eh eh a. comply with mandatory rule and regulation; b. take into account applicable code, guideline and tandard recommended by the Organization, Adminitration, claification ocietie and maritime indutry organization. c. conider thoe apect of it operation that can have a ignificant environmental impact; d. conider the view of thoe both inide and outide the workplace, who are affected by the performance of the Company; e. conider technological option that are available; eh f. conider it financial, operational and buine requirement; and h g. take into account it legal and other requirement, and it OH&S hazard and rik. eh 3.4.4 The objective and target hould be meaurable, where practicable, and conitent with the health, afety, and environmental policy, including the Company commitment to promote afe operation, and prevention of injury and ill health, and prevention of pollution, to compliance with applicable legal requirement and with other requirement to which the Company ubcribe, and to continual improvement. ABS GUIDE FOR MARINE HEALTH, SAFETY, QUALITY, AND ENVIRONMENTAL MANAGEMENT. 2009 13

Section 3 Planning q 3.5 Quality Planning and Objective 3.5.1 Top Management hould: a. etablih quality objective, including thoe needed to meet the requirement of ervice at relevant function and level within the Company. Thee hould be meaurable and conitent with the quality policy and planning of activitie hould be carried out to meet the management ytem requirement a well a quality objective. b. maintain the integrity of the management ytem i maintained when change are planned and implemented. 3.5.2 The Company hall plan and develop the procee needed for ervice realization. Planning of ervice realization hall be conitent with the requirement of the other procee of the quality management ytem. (ISO 9001:2008 7.1) 3.5.3 In delivering the ervice the Company hould determine the following, a appropriate: a. quality objective and the cutomer requirement for the ervice; b. the need to etablih procedure and document and to provide reource pecific to the ervice; c. the required verification, validation, monitoring, meaurement, inpection, and tet activitie pecific to the ervice and the criteria for ervice acceptance; and d. the record to be maintained to demontrate compliance. q 3.5.4 The output of thi planning hall be in a form uitable for the Organization method of operation. (ISO 9001:2008 7.1) Note: The output of thi planning activity could be referred to a a quality plan. 3.6 Cutomer Focu q 3.6.1 General Top management hall enure that cutomer requirement are determined and met with the aim of enhancing cutomer atifaction. Additionally, the Company hall monitor information relating to the cutomer perception to demontrate fulfilling cutomer requirement. The method for obtaining and uing thi information hould be determined and may include: a. procedure for reviewing pertinent voyage inpection and tet record in order to determine if cutomer requirement have been met, and if requirement have not been met, corrective action hould be taken; (See 5.4) b. participation in client meeting; c. oliciting of client feedback; d. tracking breakdown, accident, delay, and port tate intervention; e. anticipating trend including opportunitie for preventive action; 14 ABS GUIDE FOR MARINE HEALTH, SAFETY, QUALITY, AND ENVIRONMENTAL MANAGEMENT. 2009

Section 3 Planning f. tracking upplier performance and cot of purchae; (See 5.1.3) 3.6.2 Determination of the Requirement Related to Management of Ship (other ervice) q 3.6.2.1 Prior to committing to provide ervice to the client, the Company hould determine and review the requirement related to the ervice to be delivered to confirm that; a. the requirement, including delivery and pot-delivery of it ervice, are adequately defined and documented. Where the cutomer communicate hi requirement by other mean, thee hall be confirmed prior to acceptance; b. requirement not tated by the cutomer but conidered neceary by the Company are addreed; c. order requirement differing from thoe previouly expreed are reolved; and d. the Company ha the ability to meet the defined requirement and; e. tatutory and regulatory requirement are identified. q 3.6.2.2 Where requirement are changed by the cutomer, the Company hould verify that relevant document are amended and that relevant peronnel are made aware of the changed requirement. q 3.6.3 Cutomer Communication (ISO 9001:2008 7.2.3) The Company hall determine and implement effective arrangement for communicating with cutomer in relation to: a. the ervice or product information; b. enquirie, contract or order handling, including amendment; and c. cutomer feedback, including cutomer complaint. q 3.6.4 Cutomer Record Record of the reult of the review of requirement, and any action ariing from the review, hould be maintained. (See 5.4) 3.7 Management Program 3.7.1 General q 3.7.1.1 The Company hould etablih, implement, and maintain program for achieving it objective and target related to health and afety, protection of the environment, and quality, taking into account the unique deign characteritic and operating requirement of each hip type. 3.7.1.2 The Company hall determine the procee needed for the management ytem and their application throughout the Company. The Company hall determine the equence and interaction of thee procee. (ISO 9001:2008 4.1.a/4.1.b) ABS GUIDE FOR MARINE HEALTH, SAFETY, QUALITY, AND ENVIRONMENTAL MANAGEMENT. 2009 15

Section 3 Planning 3.7.1.3 The program hould: eh qh qe a. identify criteria, method, reource, and information required to effectively monitor, meaure where applicable, analyze, control, and implement the identified procee. b. include defined level of reponibility and authority and line of communication between, and amongt, hore and hipboard peronnel; c. include the mean and time frame by which the objective and target are to be achieved; d. deignate reponibility for achieving objective and target at relevant function and level of the Company; e. implement action neceary to achieve planned reult and continual improvement of thee procee. f. be reviewed at regular and planned interval and adjut a neceary, o that objective are achieved. q q 3.7.1.4 Thee procee hould be managed by the Company in accordance with the requirement of thi Guide. 3.7.1.5 Where the Company chooe to outource any proce that affect product conformity to requirement, the Company hall enure control over uch procee. The type and extent of control to be applied to thee outourced procee hall be defined within the management ytem. (ISO 9001:200, 4.1) q 3.7.2 Management Commitment (ISO 9001:2008 5.1) 3.7.2.1 Top management hall provide evidence of commitment to the development and implementation of the management ytem and continually improving it effectivene by: a. communicating the importance of meeting the cutomer a well a the tatutory and regulatory requirement, b. etablihing the quality policy; c. enuring that quality objective are etablihed; d. conducting management review; and e. enuring availability of reource. 3.7.3 Management Sytem Documentation 3.7.3.1 The Company hould decribe the pertinent health, afety, environmental protection, and quality program, within the management ytem documentation, a applicable. 3.7.3.2 The management ytem documentation hould; a. define and document the cope of the management ytem including detail and jutification for any excluion; 16 ABS GUIDE FOR MARINE HEALTH, SAFETY, QUALITY, AND ENVIRONMENTAL MANAGEMENT. 2009

Section 3 Planning q b. include pertinent Company policie, objective and target; c. define the reponibility, authority, and interrelation of the peronnel who manage, perform, and verify work relating to and affecting afety operation, pollution prevention, and quality, a appropriate; d. decribe the core element and outline the tructure of the Company management ytem and interaction of it element, and reference to related document; e. include documented procedure etablihed for the management ytem or provide appropriate reference to management ytem documentation. The complexity of the work and the kill level of peronnel involved in performing the work and the work environment hall govern the degree of control provided within management ytem procedure; q f. decribe the interaction between the procee of the management ytem; hqe he g. include the procedure and record required by thi Guide to demontrate conformity to requirement and the effective planning, operation, and control of the management ytem procee. (See 5.4) h. include document, including record, determined by the Company to be neceary to demontrate the effective planning, operation, and control of procee that relate to it ignificant environmental apect and management of it OH&S rik; and i. be kept in the form that the Company conider mot effective. ABS GUIDE FOR MARINE HEALTH, SAFETY, QUALITY, AND ENVIRONMENTAL MANAGEMENT. 2009 17

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Section 4: Implementation and Operation GUIDE FOR MARINE HEALTH, SAFETY, QUALITY, AND ENVIRONMENTAL MANAGEMENT 4 IMPLEMENTATION AND OPERATION 4.1 Reource, Role, Reponibility, Accountability, and Authority 4.1.1 The Company hould provide the reource eential to etablih, implement, maintain, and improve the management ytem. Reource include human reource and pecialized kill, organizational infratructure, technology, and financial reource. Reource alo include peronnel uitably trained to perform verification activitie including internal management ytem audit. he 4.1.2 The Company management hould demontrate it commitment by defining role, allocating reponibilitie and accountabilitie, and delegating authoritie, to facilitate effective OH&S management. Role, reponibilitie, accountabilitie and authoritie hould be defined, documented, and communicated. All thoe with management reponibility hould demontrate their commitment to the continual improvement of OH&S performance. h 4.1.3 Top management hall take ultimate reponibility for OH&S and the OH&S management ytem. (OHSAS 18001:2007 4.4.1) q 4.1.4 The Company management hould provide the reource needed to enhance cutomer atifaction by meeting cutomer requirement. q 4.1.5 Infratructure The Company hould determine, provide, and maintain the infratructure needed to achieve the pecified or implied requirement of the cutomer. Infratructure include, a applicable: (ISO 9001:2008 6.3) a. building, work pace and aociated utilitie; b. proce equipment (both hardware and oftware); and c. upporting ervice (e.g., tranportation, communication, or information ytem). ABS GUIDE FOR MARINE HEALTH, SAFETY, QUALITY, AND ENVIRONMENTAL MANAGEMENT. 2009 19

Section 4 Implementation and Operation q 4.1.6 Work Environment The Company hould determine and manage the work environment, both on board the hip and in the hore-baed office needed to achieve conformity to product requirement. 4.2 Deignated Peron()/Quality Management Repreentative/ Environmental Management Repreentative()/OH&S Management Repreentative 4.2.1 The Company top management hould appoint member() of management who, irrepective of other reponibilitie, hall have defined role, reponibilitie and authority to: a. provide a link between the Company and thoe aboard; b. liaie with external partie on matter concerning etablihment, approval, and timely auditing of the management ytem to comply with applicable code, tandard, or indutry guideline, including requirement of thi Guide; c. monitor the afety and pollution prevention apect of the operation of each hip and provide adequate hore-baed upport a required; d. verify that the management ytem i etablihed, implemented, and maintained in accordance with the requirement of thi Guide; e. conduct management review and report to top management on the performance of the management ytem, including recommendation for improvement; and q f. provide awarene of meeting the cutomer a well a tatutory and regulatory requirement. 4.2.2 The deignated peron()/management repreentative hould have direct acce to the highet level of management. 4.2.3 The Company hould provide adequate reource and hore-baed upport to enable the Management repreentative/deignated peron or peron to carry out their function. h 4.2.4 The identity of the Management Repreentative() hould be made available to all peron working under control of the Company. 4.3 Mater Reponibility and Authority (ISM 5) 4.3.1 The Company hould clearly define and document the Mater reponibility with regard to: (ISM 5.1) a. implementing the occupational health, afety, environmental-protection, and quality policy of the Company; b. motivating the crew in the obervation of that policy; c. iuing appropriate order and intruction in a clear and imple manner; d. verifying that pecified requirement are oberved; and 20 ABS GUIDE FOR MARINE HEALTH, SAFETY, QUALITY, AND ENVIRONMENTAL MANAGEMENT. 2009

Section 4 Implementation and Operation e. (1 July 2010) periodically reviewing the management ytem and reporting it deficiencie to the hore-baed management. 4.3.2 The Company hould enure that the afety management ytem operating on board the hip contain a clear tatement emphaizing the mater' authority. The Company hould etablih in the afety management ytem that the mater ha the overriding authority and the reponibility to make deciion with repect to afety and pollution prevention and to requet the Company' aitance a may be neceary. 4.4 Shipboard Peronnel 4.4.1 Mater Qualification and Support 4.4.2 Crew The Company hould enure that the Mater i: a. properly qualified for command; b. fully converant with Company afety management ytem; and c. given the neceary upport o that the Mater dutie can be afely performed. 4.4.2.1 The Company hould enure that each hip i manned with qualified, certificated, and medically fit eafarer in accordance with national and international requirement. 4.4.2.2 The Company hould etablih procedure to enure that new peronnel and peronnel tranferred to new aignment related to afety and protection of the environment are given proper familiarization with their dutie. Intruction which are eential to be provided prior to ailing hould be identified, documented and given. 4.4.2.3 The Company hould etablih procedure by which the hip peronnel receive relevant information on the afety management ytem in a working language or language undertood by them. 4.4.2.4 The Company hould enure that the hip peronnel are able to communicate effectively in the execution of their dutie related to the afety management ytem. h 4.4.2.5 The Company hall enure that peron in the workplace take reponibility for apect of OH&S over which they have control, including adherence to the Company applicable OH&S requirement. (OHSAS 18001:2007 4.4.1) 4.5 Competence, Training, and Awarene 4.5.1 General hqe 4.5.1.1 The Company hould verify that any peronnel performing tak for it or on it behalf that have potential to impact afe operation, pollution prevention, OH&S rik, and conformity of the ervice to requirement hall be competent on the bai of appropriate education, training (both externally and internally provided), kill and/or experience, and hall retain aociated record. ABS GUIDE FOR MARINE HEALTH, SAFETY, QUALITY, AND ENVIRONMENTAL MANAGEMENT. 2009 21

Section 4 Implementation and Operation 4.5.1.2 The Company hould: qh q h a. determine the neceary competence for peronnel performing work affecting afety, the environment, or conformity to ervice requirement; b. etablih and maintain documented procedure for identifying any training which may be required in upport of the management ytem and verify that uch training i provided for all peronnel concerned; c. evaluate the effectivene of the training provided or other action taken to achieve the neceary competence; and d. make peronnel aware of the relevance and importance of their activitie and how they contribute to the achievement of the quality objective 4.5.1.3 The Company hould verify that all peronnel involved in the Company afety management ytem have an adequate undertanding of relevant rule, regulation, code, and guideline. 4.5.1.4 Appropriate record of education, training, kill, and experience hould be maintained. 4.5.1.5 Training procedure hall take into account differing level of reponibility, ability, language kill, literacy and rik. (OHSAS 18001:2007 4.4.2) eh 4.5.2 Management Sytem Awarene Training The Company hould etablih, implement, and maintain procedure o that peronnel working for it or on it behalf within the hore-baed and hipboard organization are aware of: eh e eh eh eh a. the importance of conformance with the management ytem policie and procedure and with requirement of the management ytem; b. the ignificant impact, actual or potential, of their work activitie; c. the benefit of improved peronal performance, afe operation, and preervation of the environment, d. their role and reponibilitie in achieving conformance with requirement of the management ytem policie, procedure and requirement; e. their role and reponibilitie in regard to emergency preparedne and repone requirement; and eh f. the potential conequence of departure from pecified operating procedure and requirement. 4.5.3 Familiarization Training (ISM 6.3) The Company hould etablih, implement and maintain procedure o that new peronnel and peronnel tranferred to new aignment related to occupational health, afety, protection of the environment, and quality, a applicable, are given proper familiarization with their dutie. Intruction which are eential to be provided prior to ailing hould be identified, documented, and given. 22 ABS GUIDE FOR MARINE HEALTH, SAFETY, QUALITY, AND ENVIRONMENTAL MANAGEMENT. 2009

Section 4 Implementation and Operation 4.6 Communication, Participation, and Conultation qe 4.6.1 Top management hall enure that appropriate communication procee are etablihed within the Company and that communication take place regarding the effectivene of the management ytem. (ISO 9001:2008 5.5.3) eh 4.6.2 Regarding it health and afety hazard, environmental apect, and OH&S and environmental management ytem, the Company hould etablih, implement, and maintain documented procedure for: eh eh h a. internal communication among the variou level and function within the Company; b. receiving, documenting, and reponding to relevant communication from external intereted partie. c. communication with contractor and other viitor to the workplace. e 4.6.3 The Company hall decide whether to communicate externally about it ignificant environmental apect and hall document it deciion. If the deciion i to communicate, the organization hall etablih and implement a method() for thi external communication. (ISO 14001:2004 4.4.3) h 4.6.4 The Company hould etablih, implement, and maintain procedure() o that pertinent OH&S information i communicated to and from employee and other intereted partie. Employee participation and conultation arrangement hall be documented and intereted partie informed. Employee hall be: a. appropriately involved in the hazard identification, rik aement, and determination of control; b. appropriately involved in incident invetigation; c. conulted where there are any change that affect workplace health and afety. Thi include conultation with contractor where there are change that affect their OH&S; d. repreented on health and afety matter; and e. informed a to who i their employee OH&S repreentative and pecified management appointee; and h 4.6.5 The Company hall conult, when appropriate, with relevant external intereted partie about pertinent OH&S iue. 4.7 Control of Document 4.7.1 Sytem documentation hould conit of: a. etablihed, implemented, and maintained documented procedure for: 1. document and data control, including document of external origin; 2. internal audit; and ABS GUIDE FOR MARINE HEALTH, SAFETY, QUALITY, AND ENVIRONMENTAL MANAGEMENT. 2009 23

Section 4 Implementation and Operation 3. corrective and preventive action; 4. non-conformance, hazardou occurrence and near mie; q 5. control of quality record; (See 5.4) q q q q b. documented quality policy and quality objective; c. a quality manual (thi manual may be incorporated into an exiting top tier manual); d. document required for effective planning, operation and control of it procee; and e. record required to demontrate compliance with requirement and of effective operation of the management ytem. (See 5.4) Note: The documentation can be in any form or type of medium. 4.7.2 The Company hould etablih, implement, and maintain documented procedure to control all document and data relevant to the management ytem o that: a. valid document can be located and are available at point of ue; b. new and revied document and data are reviewed and approved, or updated and re-approved for adequacy by authorized peronnel prior to iue; c. document of external origin determined by the Company to be neceary for planning and operation of the management ytem are to be identified and their ditribution controlled; d. each hip carrie on board external and internal document relevant to that hip; e. invalid or obolete document are promptly removed; f. any invalid or obolete document retained for any purpoe are uitably identified and prevented from unintended ue. 4.7.3 The Company hould verify that change and current reviion tatu of document are identified e 4.7.4 Documented procedure and reponibility for the creation and modification of the variou type of document hould be aigned. hqe 4.7.5 Documentation hould remain legible and readily identifiable, maintained in an orderly manner and indicate the date of reviion and retained for a period etablihed by the Company. 4.8 Operational Control 4.8.1 (1 July 2010) The Company hould etablih procedure, plan and intruction, including checklit a appropriate, for key hore-baed and hipboard operation and activitie concerning the afety of the hip, prevention of pollution, preervation of the environment, and quality in upport of the Company policy() and objective. The variou tak hould be defined and aigned to qualified peronnel. 24 ABS GUIDE FOR MARINE HEALTH, SAFETY, QUALITY, AND ENVIRONMENTAL MANAGEMENT. 2009

Section 4 Implementation and Operation 4.8.2 The Company hould etablih, implement, and maintain documented intruction and procedure to promote afe operation of hip and protection of the environment in compliance with relevant international and Flag State legilation. 4.8.3 The Company hould identify thoe operation and activitie that are aociated with identified hazard where control meaure need to be applied to manage the rik(). Thi hall include management of change. The Company hall plan thee operation and activitie in order that they are carried out under controlled condition. The output of thi planning hall be in the form uitable for the Company method of operation. Controlled condition include: e a. compliance with mandatory rule, regulation, and code; b. etablihed and maintained documented procedure/work intruction to control ituation where their abence could lead to deviation from the policie, objective, and target; c. defined tak aigned to properly qualified peronnel; d. the Company permit to work ytem, which hall include meaure to verify that the condition of pace and ytem a afe or not afe for work i readily identifiable. Thee meaure hall alo include afeguard o that work doe not proceed unle afe condition exit. The condition of pace or ytem being worked on hall be updated a appropriate throughout the coure of the work; e. operation aociated with identified ignificant environmental apect conitent with it environmental policy, objective and target; e f. etablihed, implemented, and maintained documented procedure related to the identified ignificant environmental apect of good and ervice ued by the Company and communicating applicable procedure and requirement to upplier, including ubcontractor; h h g. control related to purchaed good, equipment, and ervice. h. control related to contractor and other viitor to the workplace. q i. the availability of information that decribe the characteritic including quality objective and requirement of the ervice; q j. the availability of uitable monitoring and meauring equipment; q k. implementation of monitoring and meaurement; q l. ue of uitable equipment and a uitable working environment; q q q m. validation of approved procee and equipment, a appropriate, and required record; (See 5.4) n. the implementation of ervice releae, delivery and pot delivery activitie ; (ISO 9001:2008 7.5.1.f) o. record needed to provide evidence that procee are fulfilling requirement; (See 5.4) ABS GUIDE FOR MARINE HEALTH, SAFETY, QUALITY, AND ENVIRONMENTAL MANAGEMENT. 2009 25

Section 4 Implementation and Operation hqe p. defined and documented operating criteria. q 4.8.4 The Company hall validate any procee for ervice proviion where the reulting output cannot be verified by ubequent monitoring and meaurement and, a a conequence, deficiencie become apparent only after the ervice ha been delivered. (ISO 9001:2008 7.5.2) q 4.8.5 Validation hall demontrate the ability of thee procee to achieve planned reult. (ISO 9001:2008 7.5.2) q 4.9 Purchaing 4.9.1 General The Company hould verify that purchaed product or ervice conform to pecified purchae requirement. 4.9.2 Evaluation of Supplier 4.9.2.1 The Company hould: a. etablih criteria for election, evaluation, and re-evaluation; b. evaluate and elect upplier on the bai of their ability to meet the Company requirement; c. maintain record of the reult of evaluation and action ariing thereof. (See 5.4) 4.9.2.2 The Company hould define the type and extent of control to be exercied over upplier. Thee control hall be appropriate for the type of material or ervice purchaed and it actual or potential impact on the Company delivered ervice. 4.9.3 Purchaing Information 4.9.3.1 Purchaing information hould clearly decribe the material or ervice to be purchaed, including where appropriate: a. the name, type, cla, tyle, grade, model, or other appropriate identification; b. pertinent iue of pecification, drawing, procee and inpection requirement, and other technical data; c. requirement for approval or qualification of equipment, material, procedure, or ervice; d. the qualification and certification of peron providing a ervice; e. requirement for conformance with applicable occupational health, afety, environmental, or quality management ytem requirement including title, number, and iue 4.9.3.2 The Company hould review and approve purchaing document for adequacy of pecification of material or ervice prior to releae to the upplier 26 ABS GUIDE FOR MARINE HEALTH, SAFETY, QUALITY, AND ENVIRONMENTAL MANAGEMENT. 2009

Section 4 Implementation and Operation 4.9.4 Verification of Purchaed Material or Service 4.9.4.1 The Company hall etablih and implement the inpection or other activitie neceary for verifying that purchaed material or ervice meet pecified purchae requirement. 4.9.4.2 Where the Company propoe to verify purchaed material or ervice at the upplier premie, the Company hall pecify the verification arrangement and the method of material or ervice releae in the purchaing document. 4.10 Cutomer Property q 4.10.1 The Company hould exercie care with cutomer property while it i under the Company control or being ued by it. The Company i reponible for identifying, verifying, protecting, and afeguarding cutomer property provided for incorporation or ue in the product or provided ervice. If any uch property i lot, damaged, or otherwie unuitable for ue, the Company hall report thi to the cutomer and maintain record. (See 5.4) Note: Cutomer property can include intellectual property 4.11 Preervation of Service q 4.11.1 The Company hould preerve the ervice during the proce of management and ervice delivery in order to maintain conformity to requirement. A applicable, preervation hall include identification, handling, packaging, torage, and protection. Preervation hall alo apply to the contituent part of the ervice. 4.12 Traceability q 4.12.1 Where appropriate or a required, and in accordance with cutom and practice, the Company hould identify, record, and report the progre of the voyage and charter at key point from beginning through completion and through appropriate tage of monitoring and meaurement requirement. (See 5.4) Thi hould include ervice tatu and traceablility information uch a hip poition, etimated time of arrival, and cargo load port, dicharge port, and location and quantity of cargo aboard hip. 4.13 Maintenance of the Ship and Equipment 4.13.1 General (ISM 10.1) The Company hould etablih procedure to enure that the hip i maintained in conformity with the proviion of the relevant rule and regulation and with any additional requirement which may be etablihed by the Company. 4.13.2 Inpection (ISM 10.2) In meeting thee requirement, the Company hould enure that: a. inpection are held at appropriate interval; b. any non-conformity i reported, with it poible caue, if known; c. appropriate corrective action i taken; and d. record of thee activitie are maintained. ABS GUIDE FOR MARINE HEALTH, SAFETY, QUALITY, AND ENVIRONMENTAL MANAGEMENT. 2009 27

Section 4 Implementation and Operation 4.13.3 Critical Equipment and Sytem 4.13.3.1 (1 July 2010) The Company hould identify equipment and technical ytem the udden operational failure of which may reult in hazardou ituation. The afety management ytem hould provide for pecific meaure aimed at promoting the reliability of uch equipment or ytem. Thee meaure hould include the regular teting of tand-by arrangement and equipment or technical ytem that are not in continuou ue. (ISM 10.3) 4.13.3.2 The inpection mentioned in 4.13.2 a well a the meaure referred to in 4.13.3.1 hould be integrated into the hip operational maintenance routine. (ISM 10.4) 4.13.3.3 Where inpection and tet equipment i ued to meaure maintenance criteria, the equipment hall be controlled in accordance with 5.1.4 Control of Monitoring and Meauring Equipment (MME ). 4.14 Emergency Preparedne and Repone 4.14.1 General The management ytem hould provide for meaure enuring that the Company hore-baed and hipboard organization can repond at any time to hazard, accident and emergency ituation, epecially thoe involving their hip.(ism 8.3) 4.14.2 Emergency Plan he h eh 4.14.2.1 (1 July 2010) The Company hould identify potential emergency ituation and potential accident that can have an impact on health, afety, quality, and environment and etablih procedure how it will repond to them, both hipboard and hore-baed. 4.14.2.2 The Company hould etablih, implement, and maintain documented plan and procedure to identify the potential for emergency ituation. 4.14.2.3 In planning it emergency repone the Company hould take account of the need of relevant intereted partie, e.g., emergency ervice and port facilitie 4.14.2.4 The Company hould repond to actual emergency ituation and accident and prevent or mitigate aociated advere OH&S conequence and/or environmental impact. 4.14.3 Drill and Exercie h 4.14.3.1 The Company hould etablih a program of drill and exercie to prepare for emergency ituation. The Company hould periodically tet uch procedure where practicable. 4.14.3.2 The Company hould periodically review and, where neceary, revie it emergency preparedne and repone procedure, in particular, after periodical teting and after the occurrence of accident or emergency ituation. 4.14.3.3 When conducting drill and exercie, the Company hould involve relevant intereted partie where appropriate. 28 ABS GUIDE FOR MARINE HEALTH, SAFETY, QUALITY, AND ENVIRONMENTAL MANAGEMENT. 2009

Section 5: Meaurement, Analyi, and Improvement GUIDE FOR MARINE HEALTH, SAFETY, QUALITY, AND ENVIRONMENTAL MANAGEMENT 5 MEASUREMENT, ANALYSIS, AND IMPROVEMENT 5.1 Monitoring and Meaurement 5.1.1 General qe e e qh q q The Company hould etablih, implement, and maintain documented procedure for monitoring and meauring, on a regular bai, the key characteritic of it operation and activitie that can have a ignificant impact on occupational health, afety, quality, and the environment. The procedure() hould include: a. applicable operational control; b. conformity with the Company afety and environmental objective and target; c. recording of data and reult of monitoring and meaurement to facilitate ubequent corrective and preventive action analyi. Correction hould be applied a oon a deficiencie become apparent to maintain integrity of the ervice being delivered; (See 5.4) d. objective for quality; e. continual improvement of quality management ytem; q f. demontration of ability of ervice to achieve planned reult; qeh h g. verifying that monitoring equipment i calibrated and maintained and record of thi proce (See 5.4) hould be retained according to the Company procedure; (See 5.1.4) h. both qualitative and quantitative meaure, appropriate to the need of the Company ; (OHSAS 18001:2007 4.5.1.a) h i. monitoring of the extent to which the Company OH&S objective are met ; (OHSAS 18001:2007 4.5.1.b) ABS GUIDE FOR MARINE HEALTH, SAFETY, QUALITY, AND ENVIRONMENTAL MANAGEMENT. 2009 29

Section 5 Meaurement, Analyi, and Improvement h j. monitoring the effectivene of control (for health a well a afety) ; (OHSAS 18001:2007 4.5.1.c) h k. proactive meaure of performance that monitor conformance with the OH&S program, control and operational criteria and applicable legilation and regulatory requirement. (OHSAS 18001:2007 4.5.1.d) h l. reactive meaure of performance that monitor ill health, incident (including accident, near-mie, etc.) and other hitorical evidence of deficient OH&S performance. (OHSAS 18001:2007 4.5.1.e) 5.1.2 Monitoring and Meaurement Monitoring and meaurement of ervice characteritic hould be carried out at appropriate tage of ervice or cargo delivery a determined by the Company, cutomer or charterer. Evidence of conformity with the acceptance criteria hould be maintained. The dicharge of cargo hould not be performed until planned arrangement have been completed and/or accepted by the Cutomer or charterer. Record of thee activitie hould be maintained. (See 5.4) q 5.1.3 Inpection and Tet Record The Company hould maintain record that provide evidence of the compliance with contractual requirement related to the loading, carriage, and dicharge of the cargo in accordance with cutomer intruction. Thee record hould indicate the peron() authorizing releae of cargo or the completion of ervice by peronnel (and a required by cutomer) approving changed or waived requirement. (See 5.4) q 5.1.4 Control of Monitoring and Meauring Equipment (MME) 5.1.4.1 The Company hall determine the monitoring and meaurement to be undertaken and the monitoring and meauring equipment needed to provide evidence of conformity of ervice to determined requirement. (ISO 9001:2008 7.6) hqe 5.1.4.2 The Company hould verify that calibrated or verified monitoring and meaurement equipment i ued and maintained and hall retain aociated record. (ee 5.4) Monitoring and meauring equipment (MME) hall be ued in a manner o that the meaurement uncertainty i known and i conitent with the required monitoring and meaurement requirement. 5.1.4.3 The Company hould define and implement effective meauring and monitoring procee including method and device for verification and validation of the proce to the atifaction of cutomer and other intereted partie. Thee procee could include urvey and imulation a well. 5.1.4.4 Where equipment or device are ued for verification and validation the Company hould: a. identify MME with a uitable indicator or identification record to how calibration tatu; b. calibrate or verify (or both) MME at precribed interval, or prior to ue, againt certified equipment having a known relationhip to an internationally or nationally recognized tandard. Where no uch tandard exit, the bai ued for calibration or verification hall be documented; 30 ABS GUIDE FOR MARINE HEALTH, SAFETY, QUALITY, AND ENVIRONMENTAL MANAGEMENT. 2009

Section 5 Meaurement, Analyi, and Improvement c. define the proce for calibration of MME, including the equipment type, unique identification, frequency of check, check method, acceptance criteria and the action to be taken when the reult are unatifactory; d. verify that the handling, maintenance, and torage of MME i to protect them from damage and deterioration; e. verify that the environmental condition are uitable for the calibration, inpection, meaurement, and tet being carried out; f. maintain record of the reult of calibration and verification; (See 5.4); g. afeguard MME from adjutment which would invalidate the calibration; h. ae and record the validity of previou reult when MME are found to be out of calibration and take appropriate action on the equipment and product or ervice affected; i. verify the ability of computer oftware to atify the intended application hall be confirmed prior to ue and reconfirmed a neceary; and j. identify the need for MME to be adjuted or re-adjuted a neceary prior to ue. 5.1.5 Analyi of Meaurement and Improvement 5.1.5.1 The Company hould continually improve the effectivene of the management ytem through the ue of aociated policie, quality objective, audit reult, analyi of data, corrective and preventive action and management review. 5.1.5.2 The Company hould plan and implement the monitoring, meauring, analyi, and ubequent improvement procee needed to: a. demontrate conformance of the ervice requirement; b. promote conformity with the quality management ytem; c. continually improve the ytem for managing occupational health, afety, quality, and the environment; d. demontrate the uitability and effectivene of the management ytem; and e. evaluate where continual improvement of the effectivene of the management ytem can be made. q q q 5.1.5.3 Thi hall include determination of applicable method, including tatitical technique, monitoring and meaurement and the extent of their ue. (ISO 9001:2008 8.1./8.4) 5.1.5.4 Thi hould include data generated a a reult of monitoring and meaurement and from relevant ource. 5.1.5.5 The analyi of data hall provide information relating to: a. cutomer atifaction; ABS GUIDE FOR MARINE HEALTH, SAFETY, QUALITY, AND ENVIRONMENTAL MANAGEMENT. 2009 31

Section 5 Meaurement, Analyi, and Improvement b. conformity to ervice requirement; c. characteritic and trend of procee and product, including opportunitie for preventive action; and d. upplier. (ISO 9001:2008 8.4.) q 5.2 Control of Nonconforming Material, Equipment, or Cargo Space 5.2.1 The Company hould etablih and maintain documented procedure o that unuitable material, equipment, or cargo pace are identified and prevented from unintended ue. Control hould include poitive meaure to provide for identification, documentation, evaluation, egregation (where practical) and notification of function concerned. 5.2.2 Appropriate corrective action hould be taken for cargo pace with condition that do not conform to contractual requirement. Cargo pace hould not be loaded without prior conent of the cutomer. The cutomer i to be advied of the condition of the cargo pace a a bai upon which to accept the condition with or without conceion. Condition and conceion of the cargo pace hould be recorded. (See 5.4) 5.3 Nonconformity, Incident Invetigation, Corrective and Preventive Action 5.3.1 The management ytem hould include etablihed and maintained documented procedure o that nonconformitie, including accident and hazardou ituation, are reported to the Company, invetigated, and analyzed with the objective of improving afety, pollution prevention, and continual improvement of the management ytem through the ue of policie and objective; audit reult; analyi of data; corrective and preventive action; and management review. 5.3.2 The Company hould etablih, implement, and maintain a procedure() for dealing with actual and potential nonconformity(ie) and for taking corrective action and preventive action. The procedure() hould define requirement, including reponibility and authority, for: eh a. identifying and correcting nonconformity(ie) and taking action() to mitigate their environmental impact and/or OH&S conequence; b. invetigating nonconformity(ie) (including cutomer complaint), determining their caue(), and taking action in order to prevent their recurrence; c. evaluating the need for action() to prevent nonconformity(ie) and implementing appropriate action deigned to avoid their occurrence; d. recording the reult of corrective action() and preventive action() taken; e. reviewing the effectivene of corrective action() and preventive action() taken; h f. communicating the reult of corrective and preventive action taken; and h g. reviewing propoed corrective and preventive action through the rik aement proce prior to implementation where corrective and preventive action identifie a new or changed hazard or the need for new or changed control. 32 ABS GUIDE FOR MARINE HEALTH, SAFETY, QUALITY, AND ENVIRONMENTAL MANAGEMENT. 2009

Section 5 Meaurement, Analyi, and Improvement eh 5.3.3 Any corrective or preventive action taken to eliminate the caue of actual and potential nonconformity(ie) hall be appropriate to the magnitude of problem and commenurate with the OH&S rik and environmental impact encountered. 5.3.4 The Company hould make neceary change ariing from corrective and preventive action to the management ytem documentation. 5.3.5 Nonconformance/Control of Nonconforming Service 5.3.5.1 The Company hould etablih and maintain documented procedure that define the proce for identifying and controlling nonconforming ervice to prevent unintended delivery. Reponibility and authority for dealing with nonconforming product/ervice hould be defined. The Company hould deal with the nonconforming ervice through one or more of the following method: q q q q a. taking neceary remedial action with regard to the nonconformity to mitigate impact and eliminate the nonconformity; b. initiating, implementing, and completing corrective action and preventive action; and c. authorizing it releae or acceptance under conceion by a relevant authority and, where applicable, the Cutomer. 5.3.5.2 Record of the nature of nonconformitie and any ubequent action taken, including conceion obtained, hall be maintained. (See 5.4) (ISO 9001:2008 8.3) 5.3.5.3 When nonconforming product or ervice i corrected it hall be ubject to re-verification to demontrate conformity to the requirement. (ISO 9001:2008 8.3) 5.3.5.4 When nonconforming product or ervice i detected after delivery or ue ha tarted, the Company hall take action appropriate to the effect, or potential effect, of the nonconformity. 5.3.6 Incident Invetigation 5.3.6.1 The Company hould etablih, implement, and maintain a procedure() to record, invetigate and analyze incident in order to: a. determine underlying deficiencie and other factor that may be cauing or contributing to the occurrence of incident; b. identify the need for corrective action; c. identify opportunitie for preventive action and continual improvement; d. communicate the reult of uch invetigation h 5.3.6.2 The invetigation hould be performed in a timely manner. The reult of the invetigation are to be documented and maintained. ABS GUIDE FOR MARINE HEALTH, SAFETY, QUALITY, AND ENVIRONMENTAL MANAGEMENT. 2009 33

Section 5 Meaurement, Analyi, and Improvement 5.4 Control of Record 5.4.1 The Company hould etablih, implement, and maintain procedure for the identification, torage, protection, retrieval, and dipoal of management ytem record. Thee record hould include, but not be limited to, training record, record of internal and external audit, record of review, and any other pertinent record neceary to demontrate conformity to the requirement of the management ytem and of thi Guide and the reult achieved. Note: Record requirement in thi Guide are identified with (See 5.4) notation within the applicable claue or ection. 5.4.2 A copy of the Document of Compliance (DOC) hould be placed onboard the veel in order that the Mater, if o aked, may produce it for verification by the Adminitration or organization recognized by the Adminitration. 5.4.3 A copy of the Safety Management Certificate (SMC) iued to the veel hould be retained ahore. 5.4.4 If the entity who i reponible for the operation of the hip i other than the owner, the owner mut report the full name and detail of uch entity to the Adminitration. (ISM 3.1) 5.4.5 Record hould be: a. legible, readily identifiable, and traceable to the pertinent proce, activity, or ervice; b. tored and maintained in uch a way that they remain legible, readily identifiable and retrievable, and protected againt damage, deterioration, or lo; and c. retention time for record hould be etablihed and documented. 5.5 Internal Audit 5.5.1 The Company hould conduct internal audit of the management ytem at planned interval in order to determine and verify whether: a. the management ytem conform to the planned arrangement and the requirement of thi Guide; b. the management ytem i being properly implemented, maintained, and i effective in meeting the Company policie and objective. 5.5.2 Internal audit hould be cheduled to cover all pertinent area of the management ytem ahore and onboard it veel every 12 month or le. The internal audit program hould be planned, etablihed, implemented, and maintained, taking into conideration importance of the operation concerned, reult of rik aement of Company activitie, and the reult of previou audit. 5.5.3 Internal audit procedure hould be etablihed, implemented, and maintained that addre: a. cheduling of internal audit; 34 ABS GUIDE FOR MARINE HEALTH, SAFETY, QUALITY, AND ENVIRONMENTAL MANAGEMENT. 2009

Section 5 Meaurement, Analyi, and Improvement b. the determination of audit criteria, cope, frequency, method, and objective; c. the recording and reporting of reult of audit to management; d. implementation of corrective and preventive action; e. follow-up activitie hall include the verification of the action taken and the reporting of verification reult; f. maintenance of record; (See 5.4) g. reponibilitie, competencie, and requirement for planning and conducting audit, reporting reult, and retaining aociated record; 5.5.4 The election of auditor and conduct of audit hould enure objectivity and impartiality of the audit proce. Auditor hould not audit their own work. 5.5.5 The reult of the internal audit hould be brought to the attention of all peronnel having reponibility for the activitie audited. (ISM 12.5) Record of the audit and their reult hould be maintained. 5.5.6 The management peronnel reponible for the area involved hould take timely corrective action on deficiencie found and their caue. ABS GUIDE FOR MARINE HEALTH, SAFETY, QUALITY, AND ENVIRONMENTAL MANAGEMENT. 2009 35

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Section 6: Management Review GUIDE FOR MARINE HEALTH, SAFETY, QUALITY, AND ENVIRONMENTAL MANAGEMENT 6 MANAGEMENT REVIEW 6.1 The Company hould develop, implement, and maintain procedure for management review. 6.2 The Company top management hould at planned interval, not to exceed one year, review the management ytem in accordance with documented procedure. Thi in order to determine and evaluate it continuing uitability, adequacy, efficiency, effectivene, aeing opportunitie for improvement and the need for change to the management ytem, including tated policie and objective and target. 6.3 Input to management review hould include: h eh eh qeh a. reult of internal audit and evaluation of compliance with applicable legal requirement and with other requirement to which the Company ubcribe; b. reult of participation and conultation; c. communication() from external intereted partie, including complaint; d. the environmental and/or OH&S performance of the Company; e. the extent to which objective and target have been met; f. tatu of incident invetigation, corrective and preventive action; g. follow-up action from previou management review; h. changing circumtance, including development in legal and other requirement related to it operation; and i. recommendation for improvement. ABS GUIDE FOR MARINE HEALTH, SAFETY, QUALITY, AND ENVIRONMENTAL MANAGEMENT. 2009 37

Section 6 Management Review 6.4 The output from management review hould include any deciion and action related to poible change to policy, objective and target, reource need, performance, other element of the management ytem and conitent with the commitment to continual improvement. 6.5 The reult of the review hould be brought to the attention of all peronnel having reponibility in the area involved. 6.6 If corrective action i identified during the management review, the management peronnel reponible for the area involved hould take timely corrective action on deficiencie found. 6.7 Record of management review hall be maintained. 38 ABS GUIDE FOR MARINE HEALTH, SAFETY, QUALITY, AND ENVIRONMENTAL MANAGEMENT. 2009

Appendix 1: Correpondence Between ISM Code, ISO 9001:2008 & ISO 140001:2004, OHSAS 18001:2007 and, ABS HSQE Guide GUIDE FOR MARINE HEALTH, SAFETY, QUALITY, AND ENVIRONMENTAL MANAGEMENT APPENDIX 1 CORRESPONDENCE BETWEEN ISM CODE, ISO 9001:2008 & ISO 14001:2004, OHSAS 18001:2007, AND ABS HSQE GUIDE ABS HSQE Guide, 2009 ISM Code ISO 9001: 2008 1 General 1.3 Scope and Application 1.3 1.2 ISO 14001: 2004 OHSAS 18001: 2007 2 Policy 2.1 General Requirement 2.2 4.1 4.1 4.1 2.2 Safety and Environmental Policy 1.2 5.1 4.2 4.2 2.1 1.4 5.3 2.3 Quality Policy 5.1 5.3 8.5.1 4.2 4.2 3 Planning 5.4 4.3 3.1 Environmental Apect 5.2 7.2.1 7.2.2 4.3.1 3.2 Hazard Identification, Planning, and Rik Control 4.3.1 3.3 Legal and Other Requirement 5.2 7.2.1 4.3.2 4.5.2 4.3.2 4.5.2 3.4 Safety and Environmental Objective, Target, and Program() 1.2.3 5.4.1 5.4.2 4.3.3 4.3.3 8.5.1 3.5 Quality Planning and Objective 5.4 7.1 3.6 Cutomer Focu 5.2 7.2 3.7 Management Program 1.4.3 3.2 11.3 4.1 4.2.1 4.2.2 5.5.1 6.4 4.1 4.3.3 4.4.1 4.4.4 4.3.3 4.4.4 ABS GUIDE FOR MARINE HEALTH, SAFETY, QUALITY, AND ENVIRONMENTAL MANAGEMENT. 2009 39

Appendix 1 Correpondence Between ISM Code, ISO 9001:2008 & ISO 14001:2004, OHSAS 18001:2007, and ABS HSQE Guide ABS HSQE Guide, 2009 ISM Code ISO 9001: 2008 ISO 14001: 2004 OHSAS 18001: 2007 4 Implementation and Operation 7 4.4 4.4 4.1 Reource, Role, Reponibility, Accountability, 4.4.1 4.4.1 and Authority 4.2 Deignated Peron/Management Repreentative/Environmental Management Repreentative 4 3.3 4.3 Mater Reponibility and Authority 5.1 5.2 4.4 Shipboard Peronnel 6.1 6.2 6.3 6.6 6.7 4.5 Competence, Training and Awarene 6.3 6.4 6.5 5.1 5.5.1 5.5.2 6.1 6.3 5.5.2 4.4.1 4.4.1 6.2.1 6.2.2 4.4.1 4.4.1 4.4.2 4.4.2 4.4.2 4.4.1 4.4.2 4.4.2 4.4.2 4.6 Communication, Participation, and Conultation 5.5.3 4.4.3 4.4.3 7.2.3 4.7 Control of Document 11 4.2.3 4.4.5 4.4.5 4.8 Operational Control 1.4.2 7 4.4.6 7.1 7.2.1 7.2.2 7.4.1 7.4.2 7.4.3 7.5.1 7.5.2 7.5.5 4.9 Purchaing 7.4.1 7.4.2 7.4.3 4.10 Cutomer Property 7.5.4 4.11 Preervation of Service 7.5.5 4.12 Traceability 7.5.3 4.13 Maintenance of the Ship and Equipment 10.1 4.4.6 4.4.6 10.2 10.3 10.4 4.14 Emergency Preparedne and Repone 8 1.4.5 8.3 4.4.7 4.4.7 40 ABS GUIDE FOR MARINE HEALTH, SAFETY, QUALITY, AND ENVIRONMENTAL MANAGEMENT. 2009

Appendix 1 Correpondence Between ISM Code, ISO 9001:2008 & ISO 14001:2004, OHSAS 18001:2007, and ABS HSQE Guide ABS HSQE Guide, 2009 ISM Code ISO 9001: 2008 ISO 14001: 2004 OHSAS 18001: 2007 5 Meaurement, Analyi, and Improvement 8 4.5 4.5. 5.1 Monitoring and meaurement 7.6 8.1 8.2.4 8.4 8.5.1 4.5.1 4.5.1 5.2 Control of Nonconforming Material, Equipment or Cargo Space 5.3 Nonconformity, Incident Invetigation, Corrective Action, and Preventive Action 9 8.2.3 8.2.4 8.3 1.4.4 9 5.4 Control of Record 3.1 10 13 5.5 Internal Audit 12.1 12.3 12.4 12.5 12.6 8.3 8.4 8.5.2 8.5.3 4.5.3 4.5.3 4.2.4 4.5.4 4.5.4 8.2.2 4.5.5 4.5.5 6 Management Review 12.2 5.6 4.6 4.6 ABS GUIDE FOR MARINE HEALTH, SAFETY, QUALITY, AND ENVIRONMENTAL MANAGEMENT. 2009 41

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Appendix 2: Supplemental Requirement of the ISM Code GUIDE FOR MARINE HEALTH, SAFETY, QUALITY, AND ENVIRONMENTAL MANAGEMENT APPENDIX 2 SUPPLEMENTAL REQUIREMENTS OF THE ISM CODE Thee requirement (refer to Part B of the ISM code) are provided for guidance only. Requirement of thi ection pertain to iuance of certificate and periodical verification. 13 CERTIFICATION AND PERIODICAL VERIFICATION 13.1 The hip hould be operated by a Company which ha been iued with a Document of Compliance or with an Interim Document of Compliance in accordance with paragraph 14.1, relevant to that hip. 13.2 The Document of Compliance hould be iued by the Adminitration, by an organization recognized by the Adminitration or, at the requet of the Adminitration, by another Contracting Government to the Convention to any Company complying with the requirement of thi Code for a period pecified by the Adminitration which hould not exceed five year. Such a document hould be accepted a evidence that the Company i capable of complying with the requirement of thi Code. 13.3 The Document of Compliance i only valid for the hip type explicitly indicated in the document. Such indication hould be baed on the type of hip on which the initial verification wa baed. Other hip type hould only be added after verification of the Company capability to comply with the requirement of thi Code applicable to uch hip type. In thi context, hip type are thoe referred to in regulation IX/1 of the Convention. 13.4 The validity of a Document of Compliance hould be ubject to annual verification by the Adminitration or by an organization recognized by the Adminitration or, at the requet of the Adminitration by another Contracting Government within three month before or after the anniverary date. 13.5 The Document of Compliance hould be withdrawn by the Adminitration or, at it requet, by the Contracting Government which iued the document, when the annual verification required in paragraph 13.4 i not requeted or if there i evidence of major nonconformitie with thi Code. ABS GUIDE FOR MARINE HEALTH, SAFETY, QUALITY, AND ENVIRONMENTAL MANAGEMENT. 2009 43

Appendix 2 Supplemental Requirement of the ISM Code 13.5.1 All aociated Safety Management Certificate and/or Interim Safety Management Certificate hould alo be withdrawn if the Document of Compliance i withdrawn. 13.6 A copy of the Document of Compliance hould be placed onboard in order that the mater of the hip, if o requeted, may produce it for verification by the Adminitration or by an organization recognized by the Adminitration or for the purpoe of the control referred. 13.7 The Safety Management Certificate hould be iued to a hip for a period which hould not exceed five year by the Adminitration or an organization recognized by the Adminitration or, at the requet of the Adminitration, by another Contracting Government. The Safety Management Certificate hould be iued after verifying that the Company and it hipboard management operate in accordance with the approved afety management ytem. Such a certificate hould be accepted a evidence that the hip i complying with the requirement of thi Code. 13.8 The validity of the Safety Management Certificate hould be ubject to at leat one intermediate verification by the Adminitration or an organization recognized by the Adminitration or, at the requet of the Adminitration, by another Contracting Government. If only one intermediate verification i to be carried out and the period of validity of the Safety Management Certificate i five year, it hould take place between the econd and third anniverary date of the Safety Management Certificate. 13.9 In addition to the requirement of paragraph 13.5.1, the Safety Management Certificate hould be withdrawn by the Adminitration or, at the requet of the Adminitration, by the Contracting Government which ha iued it when the intermediate verification required in paragraph 13.8 i not requeted or if there i evidence of major nonconformity with thi Code. 13.10 Notwithtanding the requirement of paragraph 13.2 and 13.7, when the renewal verification i completed within three month before the expiry date of the exiting Document of Compliance or Safety Management Certificate, the new Document of Compliance or the new Safety Management Certificate hould be valid from the date of completion of the renewal verification for a period not exceeding five year from the date of expiry of the exiting Document of Compliance or Safety Management Certificate. 13.11 When the renewal verification i completed more than three month before the expiry date of the exiting Document of Compliance or Safety Management Certificate, the new Document of Compliance or the new Safety Management Certificate hould be valid from the date of completion of the renewal verification for a period not exceeding five year from the date of completion of the renewal verification. 13.12 (1 July 2010) When the renewal verification i completed after the expiry date of the exiting Safety Management Certificate, the new Safety Management Certificate hould be valid from the date of completion of the renewal verification to a date not exceeding five year from the date of expiry of the exiting Safety Management Certificate. 13.13 (1 July 2010) If a renewal verification ha been completed and a new Safety Management Certificate cannot be iued or placed on board the hip before the expiry date of the exiting certificate, the Adminitration or organization recognized by the Adminitration may endore the exiting certificate and uch a certificate hould be accepted a valid for a further period which hould not exceed five month from the expiry date. 44 ABS GUIDE FOR MARINE HEALTH, SAFETY, QUALITY, AND ENVIRONMENTAL MANAGEMENT. 2009

Appendix 2 Supplemental Requirement of the ISM Code 13.14 (1 July 2010) If a hip at the time when a Safety Management Certificate expire i not in a port in which it i to be verified, the Adminitration may extend the period of validity of the Safety Management Certificate but thi extenion hould be granted only for the purpoe of allowing the hip to complete it voyage to the port in which it i to be verified, and then only in cae where it appear proper and reaonable to do o. No Safety Management Certificate hould be extended for a period of longer than three month, and the hip to which an extenion i granted hould not, on it arrival in the port in which it i to be verified, be entitled by virtue of uch extenion to leave that port without having a new Safety Management Certificate. When the renewal verification i completed, the new Safety Management Certificate hould be valid to a date not exceeding five year from the expiry date of the exiting Safety Management Certificate before the extenion wa granted. 14 INTERIM CERTIFICATION 14.1 An Interim Document of Compliance may be iued to facilitate initial implementation of thi Code when:.1 a Company i newly etablihed; or.2 new hip type are to be added to an exiting Document of Compliance, following verification that the Company ha a afety management ytem that meet the objective of paragraph 1.2.3 of thi Code, provided the Company demontrate plan to implement a afety management ytem meeting the full requirement of thi Code within the period of validity of the Interim Document of Compliance. Such an Interim Document of Compliance hould be iued for a period not exceeding 12 month by the Adminitration or by an organization recognized by the Adminitration or, at the requet of the Adminitration, by another Contracting Government. A copy of the Interim Document of Compliance hould be placed on board in order that the mater of the hip, if o requeted, may produce it for verification by the Adminitration or by an organization recognized by the Adminitration or for the purpoe of the control referred to in regulation IX/6.2 of the Convention. The copy of the document i not required to be authenticated or certified. 14.2 An Interim Safety Management Certificate may be iued:.1 to new hip on delivery;.2 when a Company take on reponibility for the operation of a hip which i new to the Company; or.3 when a hip change flag. Such an Interim Safety Management Certificate hould be iued for a period not exceeding 6 month by the Adminitration or an organization recognized by the Adminitration or, at the requet of the Adminitration, by another Contracting Government. 14.3 An Adminitration or, at the requet of the Adminitration, another Contracting Government may, in pecial cae, extend the validity of an Interim Safety Management Certificate for a further period which hould not exceed 6 month from the date of expiry. ABS GUIDE FOR MARINE HEALTH, SAFETY, QUALITY, AND ENVIRONMENTAL MANAGEMENT. 2009 45

Appendix 2 Supplemental Requirement of the ISM Code 14.4 An Interim Safety Management Certificate may be iued following verification that:.1 the Document of Compliance, or the Interim Document of Compliance, i relevant to the hip concerned;.2 the afety management ytem provided by the Company for the hip concerned include key element of thi Code and ha been aeed during the audit for iuance of the Document of Compliance or demontrated for iuance of the Interim Document of Compliance;.3 (1 July 2010) the Company ha planned the internal audit of the hip within three month;.4 the mater and officer are familiar with the afety management ytem and the planned arrangement for it implementation;.5 intruction, which have been identified a being eential, are provided prior to ailing; and.6 relevant information on the afety management ytem ha been given in a working language or language undertood by the hip peronnel. 15 VERIFICATION 15.1 All verification required by the proviion of thi Code hould be carried out in accordance with procedure acceptable to the Adminitration, taking into account the guideline developed by the Organization. 16 FORMS OF CERTIFICATES 16.1 The Document of Compliance, the Safety Management Certificate, the Interim Document of Compliance and the Interim Safety Management Certificate hould be drawn up in a form correponding to the model given in the appendix to thi Code. If the language ued i neither Englih nor French, the text hould include a tranlation into one of thee language. 16.2 In addition to the requirement of paragraph 13.3 the hip type indicated on the Document of Compliance and the Interim Document of Compliance may be endored to reflect any limitation in the operation of the hip decribed in the afety management ytem. 46 ABS GUIDE FOR MARINE HEALTH, SAFETY, QUALITY, AND ENVIRONMENTAL MANAGEMENT. 2009

Appendix 3: Term and Condition for the Ue of ABS SMS Certified and ABS HSQE Certified Logo GUIDE FOR MARINE HEALTH, SAFETY, QUALITY, AND ENVIRONMENTAL MANAGEMENT APPENDIX 3 TERMS AND CONDITIONS FOR THE USE OF ABS SMS CERTIFIED AND ABS HSQE CERTIFIED LOGOS A3.1 When a Company i ucceful in obtaining (and maintaining) it ISM and/or HSQE certification, the correponding ABS HSQE/SMS Certified Logo() may be ued with the undertanding that it ue mut be controlled a follow: A3.1.1 Any advertiement or other ue of the logo i to be preented to the Director of ABS SESC for review prior to ue. A3.1.2 The logo may only be ued on correpondence, advertiing and promotional material but mut not be ued except in connection with thoe ervice decribed in the cope of the Certificate of Company Compliance (CCC). A3.1.3 The logo may be ued only on thoe material (i.e., internet ite, letterhead, marketing literature, advertiing, invoice tock form, packaging, etc.) relating to the particular facility and veel type included within the Certificate of Company Compliance. A3.1.4 The logo may not, under any circumtance, be ued directly on or cloely aociated with any management ytem documentation (uch a procedure, policie, plan, etc.) in uch a way a to imply that the document themelve are certified by ABS. A3.1.5 If ued with other logo, ABS may ak that the Company dicontinue any ue of other logo that are unacceptable to ABS and any form of tatement that, in the opinion of ABS, might be mileading. A3.1.6 When advertiing the Company a ABS Approved, the Company name, if different from the parent Company i to be ued in conjunction with the logo. A3.1.7 The logo may be caled uniformly to any ize neceary. The color of the logo hall be either black or blue. (reflex blue or PMS 294 blue) ABS GUIDE FOR MARINE HEALTH, SAFETY, QUALITY, AND ENVIRONMENTAL MANAGEMENT. 2009 47