MARINE ACE CO., LTD.

SAFETY MANAGEMENT MANUAL

Chapter No.: 01
Rule Title SAFETY MANAGEMENT ORGANIZATION RULE
Revision No.: 00

RELEVANT ISM CODES TO THIS RULE

PART A - IMPLEMENTATION
1. GENERAL
1.1 Definitions
The following definitions apply to parts A and B of this Code.
1.1.1 International Safety Management (ISM) Code means the International Management
Code for the Safe Operation of Ships and for Pollution Prevention as adopted by the
Assembly, as may be amended by the Organization.
1.1.2 Company means the owner of the ship or any other organization or person such as
the manager, or the bareboat charterer, who has assumed the responsibility for
operation of the ship from the shipowner and who, on assuming such responsibility,
has agreed to take over all the duties and responsibility imposed by the Code.
1.1.3 Administration means the Government of the State whose flag the ship is entitled to
fly.
1.1.4 Safety Management System means a structured and documented system enabling
Company personnel to implement effectively the Company safety and environmental
protection policy.
1.1.5 Document of Compliance means a document issued to a Company which complies
with the requirements of this Code.
1.1.6 Safety Management Certificate means a document issued to a ship which signifies
that the Company and its shipboard management operate in accordance with the
approved safety management system.
1.1.7 Objective evidence means quantitative or qualitative information, records or
statements of fact pertaining of safety or to the existence and implementation of a
safety management system element, which is based on observation, measurement or
test and which can be verified.
1.1.8 Observation means a statement of fact made during a safety management audit and
substantiated by objective evidence.
1.1.9 Non-conformity means an observed situation where objective evidence indicates the
non-fulfillment of a specified requirement.
1.1.10 Major non-conformity means an identifiable deviation that poses a serious threat to
the safety of personnel or the ship or a serious risk to the environment that requires
immediate corrective action or the lack of effective and systematic implementation of
a requirement of this Code.
1.1.11 Anniversary date means the day and month of each year that corresponds to the date
of expiry of the relevant document or certificate.
1.1.12 Convention means the International Convention for the Safety of Life at Sea, 1974 as

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Rule Title SAFETY MANAGEMENT ORGANIZATION RULE Chapter No.: 01

amended.

1.3 Application
The requirements of this Code may be applied to all ships.

1.4 Functional requirements for a safety-management system

Every Company should develop, implement and maintain a safety management system (SMS)
which includes the following functional requirements:
.1 a safety and environmental-protection policy;
.2 instructions and procedures to ensure safe operation of ships and protection of
the environment in compliance with relevant international and flag State
legislation;
.3 defined levels of authority and lines of communication between, and amongst,
shore and shipboard personnel;
.4 procedures for reporting accidents and non- conformities with the provisions of
this Code;
.5 procedures to prepare for and respond to emergency situations; and
.6 procedures for internal audits and management reviews.

2. SAFETY AND ENVIRONMENTAL PROTECTION POLICY

2.1 The Company should establish a safety and environmental-protection policy which
describes how the objectives given in paragraph 1.2 will be achieved.
2.2 The Company should ensure that the policy is implemented and maintained at all
levels of the organization both, ship-based and shore-based

3. COMPANY RESPONSIBILITIES AND AUTHORITY

3.1 If the entity who is responsible for the operation of the ship is other than the owner,
the owner must report the full name and details of such entity to the Administration.
3.2 The Company should define and document the responsibility, authority and
interrelation of all personnel who manage, perform and verify work relating to and
affecting safety and pollution prevention.
3.3 The Company is responsible for ensuring that adequate resources and shore-based
support are provided to enable the designated person or persons to carry out their
functions.

4. DESIGNATED PERSON(S)
To ensure the safe operation of each ship and to provide a link between the Company and
those on board, every Company, as appropriate, should designate a person or persons ashore
having direct access to the highest level of management. The responsibility and authority of

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Rule Title SAFETY MANAGEMENT ORGANIZATION RULE Chapter No.: 01

the designated person or persons should include monitoring the safety and pollution
prevention aspects of the operation of each ship and ensuring that adequate resources and
shore-based support are applied, as required.

5. MASTER'S RESPONSIBILITY AND AUTHORITY

5.1 The Company should clearly define and document the master's responsibility with
regard to:
.1 implementing the safety and environmental-protection policy of the Company;
.2 motivating the crew in the observation of that policy;
.3 issuing appropriate orders and instructions in a clear and simple manner;
.4 verifying that specified requirements are observed; and
.5 periodically reviewing the SMS and reporting its deficiencies to the shore-based
management.
5.2 The Company should ensure that the SMS operating on board the ship contains a
clear statement emphasizing the master's authority. The Company should establish
in the SMS that the master has the overriding authority and the responsibility to
make decisions with respect to safety and pollution prevention and to request the
Company's assistance as may be necessary.

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The Company has established this rule (“SAFETY MANAGEMENT ORGANIZATION RULE”)
to achieve above Requirements of ISM Code.
The overall organization for operating the SMS is as shown in the attached “SAFETY
MANAGEMENT ORGANIZATION CHART” to this Chapter.

<< COMPANY >>

MARINE ACE CO., LTD. (IMO No: 1333924)

Marine Ace Co., Ltd. is SHIP MANAGEMENT COMPANY and holder of DOC (Document of
Compliance) who have sufficient capacity for Ship Management.

COMPANY’S ORGANIZATION
The Company has established the “COMPANY’S ORGANIZATION AND OPERATION
PROCEDURE” (B-0101) including “COMPANY’S ORGANIZATION CHART” stipulated in << On-
Board Procedure >>
1. The Company should define and document the responsibility, authority and interrelation
of all staff who manage, perform and verify work relating to and affecting safety and

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pollution, including defined levels of authority and lines of communication between and
among the Shore and the On-Board Crew Member.

DESIGNATED PERSON ASHORE (DPA)

1. To ensure the safe operation of each ship and to provide a link between the Company
and those on board, the Company (Top Management) had designated the General
Manager of Safety Administration Department as DPA who has direct access to Top
Management.
2. The responsibility and authority of DPA should monitor the safety and pollution
prevention aspects of the operation of each ship and ensuring that adequate resources
and shore-based support are applied, as required.
3. The DPA also responsible for following aspects.
■ Company Safety Management Committee
The Company should hold the “Company Safety Management Committee”
periodically in accordance with the “COMPANY SAFETY MANAGEMENT
COMMITTEE PROCEDURE” (C-0101) stipulated in << Company Procedure >>.
■ Internal Annual Safety Audit
The “Internal Annual Safety Audit Team” should be formed in accordance with
the “COMPANY INTERNAL ANNUAL SAFETY AUDIT PROCEDURE” (C-1001)
stipulated in << Company Procedure >>.
■ Contingency Response Team
In the event of On-Board Emergency Situation happened, the “Designated Person”
should request the Top Management to set up the “Contingency Response Team”
in the Company in accordance with the “COMPANY RESPONSE PROCEDURE
TO ON-BOARD EMERGENCY SITUATION” (C-0801) stipulated in << Company
Procedure >>.

<< ON-BOARD >>

ON-BOARD ORGANIZATION
The Company has established “ON-BOARD ORGANIZATION AND OPERATION PROCEDURE”
(B-0102) including “ON-BOARD ORGANIZATION CHART” stipulated in << On-Board Procedure >>.
1. The Company should clearly define and document the Master’s Responsibility with regard
to;
■ implementing the “Safety and Environmental-Protection Policy” of the Company;
■ motivating the crew in the observation of the Company’s Policy;
■ issuing appropriate orders and instructions in a clear and simple manner;
■ verifying that specified requirements are observed; and

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■ reviewing the SMS and reporting its deficiencies to the Company

2) The Company should ensure that the SMS operating On-Board contains a clear
statement emphasizing the Master’s Authority. The Company has established in the SMS
that the Master has the OVERRIDING AUTHORITY and responsibility to make decisions
with respect to safety and pollution prevention and to request the Company’s assistance
as may be necessary.
3) The Company should define and document the responsibility, authority and interrelation
of all Crew Member who manage, perform and verify work relating to and affecting safety
and pollution, including defined levels of authority and lines of communication between,
and amongst, shore and On-Board personnel.

ON-BOARD COMMITTEE.
The Company has established “ON-BOARD COMMITTEE PROCEDURE” (B-0103) stipulated
in << On-Board Procedure >>
1. ON-BOARD SAFETY MANAGEMENT COMMITTE
1) to ensure the safety operation of the vessel and the environmental protection in
compliance with relevant international and Flag State Legislation and also reporting
the “Non-Conformity (SMS)” with the provision of ISM Code.
2) The “Committee” should be set up as an organization and should be held at least
once a month in accordance with
2. ON-BOARD SAFETY AND HEALTH COMMITTEE
1) to ensure that:-
■ The safe practices On-Board operation and safe working environment
■ The establishment of safeguards against identified risks
■ The continuous improvement of safety management skill of personnel On-
Board, including preparation for emergency related both safety and
environmental protection
2) The following regulations of MLC 2006 DMLC Part II to be part of this Procedures.
■ 10 - Food and Catering (Regulation 3.2)
■ 11 - Health and Safety and Accident Prevention (Regulation 4.3)

ON-BOARD ACCOUNTING
The Company has established “ON-BOARD ACCOUNTING PROCEDURE” (B-0104) stipulated
in << On-Board Procedure >>for handling of Ship’s Fund.

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