(For Articles 39 and 39-5, Law Relating to the Prevention of Maritime Pollution and Maritime
Disasters)
Contract for HNS Response Resource Deployment and Emergency Response
Terms and Notes
Warning 1:
This is a translation of the original contract written in Japanese and notes thereon. It is to be used
only as a reference. No part of this translation affects the interpretation of the Japanese terms andnotes, which always take precedence.
Warning 2:
Please also note that the ‘HNS’ defined herein differs from ‘HNS’ used in the “Protocol on
Preparedness, Response and Co-operation to Pollution Incidents by Hazardous and Noxious
Substances, 2000” (OPRC-HNS Protocol), which Japan has ratified, or ‘HNS’ used in the“International Convention on Liability and Compensation for Damage in connection with the Carriageof Hazardous and Noxious Substances by Sea, 1996” (HNS Convention), which Japan has not ratified.
Section 1: General Provisions(1) This Contract for HNS Response Resource Deployment and Emergency Response (hereinafter
the “Contract”) shall be applied to procedures, rights and obligations between the Maritime
Disaster Prevention Center (hereinafter the “Center”) as a general incorporated foundation,and the ship owner (if the relevant ship is co-owned, the ship manager; if the relevant ship isleased, the lessee) and, if applicable, the person who acted on behalf of the said ship owner,
who applied for issuance of a certificate (hereinafter the “Ship Owners”), with respect to theCenter's service for preparing materials, deploying equipment and securing experts necessary
to respond to an incident relating to a large amount of oil (except for designated oil) and noxious
liquid substance (hereinafter “ ‘HNS’ ”) and the Center's issuance of a Certificate of ‘HNS’
Response Resource Deployment (hereinafter the “Certificate”) thereon, as well as initial
preventive actions to respond to an ‘HNS’ incident, fire extinction/spread prevention and otheremergency responses in the case of a threat of the said ‘HNS’ incident (hereinafter “Emergency
Response”), in accordance with the Law Relating to the Prevention of Maritime Pollution andMaritime Disasters (Law No. 136 of 1970 as revised, hereinafter the “Law”) and the Regulation
for Implementation of the said Law (Ministry of Transportation Ordinance No. 38 of 1971 asrevised, hereinafter the “Regulation”). The Ship Owners shall be deemed to have agreed to theterms and conditions hereof at the time they applied for issuance of the Certificate, and thisContract shall become valid and enforceable at the time when the Certificate is issued.
(2) In this Contract, the following terms shall have the following respective meanings.

(ⅰ) ‘HNS’: Non-specific oils and noxious liquid substances as set forth in Article 39-5 of theLaw.
(ⅱ) Non-specific oils: oils prescribed in item 2, Article 3 of the Law, excluding specific oils asprovided in Article 29 of the Regulation.
(ⅲ) Noxious liquid substances: noxious liquid substances prescribed in item 3, Article 3 of
the Law, excluding those that are not liquid at ordinary temperature, such as liquefied
petroleum gas, and those prescribed in Article 1 of the Order of the Implementation of theLaw (Cabinet Order No. 201 of 1971).
Notes(1) This Contract sets forth the terms and conditions to be applied to cases where the Center will
provide the systems it has established to carry out the operations and services provided in items
1 and 2 of Article 42-14 of the Law (hereinafter, “Item-1 Operation” and “Item-2 Operation”
respectively) with the Ship Owners who is legally obligated to prepare and deploy materials,
equipment and secure experts, and where, if an ‘HNS’ incident or a threat thereof occurs near theCenter's stockpile base for the said materials and equipment and if the Ship Owners (or the
master of the ship involved) requests so, the Center will take initial response actions (Emergency
Response) in the designated areas (the areas provided in Article 33-13 of the Regulation).
This Contract applies to any Ship Owners effectively, provided that the Ship Owners duly
made application and fee payment. Please note that this Contract is only with respect to ‘HNS’.
Therefore, a separate contract is to be made for a specified oil, or so-called “persistent oil.”(2) In this Contract, hazardous and noxious substances (‘HNS’) means non-persistent oil (to be
explained in (a) to (c) below) and noxious liquid substance [to be explained in (d)].
(a) Oil is divided into two categories under the laws of Japan: specific oil and non-specific oil.
(b) Specific oil means any persistent hydrocarbon oil including crude oil, heavy oil andlubricating oil.
(c) Non-specific oil means volatile hydrocarbon oil including gasoline, kerosene and diesel fueloil.
(d) Noxious liquid substance means any noxious substance under the Law and the Regulation,
specified from the viewpoint of preservation of marine environment, out of liquid substances
other than oil. It most of all corresponds to MARPOL73/78 Annex II (Regulations for thecontrol of pollution by noxious liquid substance in bulk) Regulation 1(6).
Therefore:(e) ‘HNS’ does not include LNG (liquefied natural gas) or LPG (liquefied petrol gas) and othersubstances, which are not in liquid at ordinary temperatures.
(f) ‘HNS’ tanker means a vessel having a structure to carry ‘HNS’ cargo in bulk.

Section 2: Deployment of Materials, Equipment and Experts, and Certificate(1) When the Ship Owners takes the steps provided in Sections 3 and 4 hereof, without any
omission or irregularity therein, the Center shall then prepare and deploy the materials andequipment, and secure experts as required under the Law and the Regulation, at the Center'sbase for materials and equipment, etc. (hereinafter the “Base”) listed in the attached table,
for the ship, with respect to which the Ship Owners files the application (hereinafter the“Ship”).

(2) The Center may enter into agreements with contractors, if necessary, to store and maintainthe materials and equipment (hereinafter “materials and equipment”) at the Base, or tosecure experts and/or to make Emergency Response.
(3) The Center shall issue a certificate to the Ship Owners to certify preparation and deploymentof the materials and equipment and securing of experts, as provided in the preceding two
paragraphs hereof.
(4) The Center will issue one of three types of Certificates: Annual Certificate, Limited Annual
Certificate or Specified Period Certificate. The Ship Owners shall select one of these at thetime of its application, in accordance with Section 3 (1).
(5) The Annual Certificate shall be valid for a period of one fiscal year, from April 1 to March
31.
(6) The Limited Annual Certificate shall be valid either for a period from April 1 to an end datein the middle of the said fiscal year, or a period from a start date in the middle of the said
fiscal year to the next March 31.
(7) The Specified Period Certificate shall be valid for a period of a minimum 14 days from astart date, or a period of multiples of 14 days from a start date.
(8) The start date of the validity period of the Limited Annual Certificate which is valid fromany start date in the middle of the fiscal year to the next March 31 (hereinafter “Limited
Annual Certificate Starting Midyear”) and the start date of the validity period of a Specified
Period Certificate shall be, in principle, the preferable start date that the Ship Owners statesin the application form, in accordance with Section 3 (1).
(9) The end date of the Limited Annual Certificate which is valid from April 1 to any end date in
the middle of the fiscal year (hereinafter “Limited Annual Certificate Starting on April 1”)
shall be, in principle, the preferable end date that the Ship Owners states in the application
form in accordance with Section 3 (1).
(10) If the owner of a ship is changed due to a ship's sale or for any other reason, the Certificate
issued for the said ship shall become invalid and this Contract shall be terminated.

Notes(1) Once the Ship Owners files an online application through the Center's website for the
deployment of the materials, equipment and experts and completes fee payment, pursuant to
the provisions hereof, the Center will prepare and deploy the materials and equipment, andsecure experts as required by the Law and the Regulation, for the ship for which the Ship
Owners makes an application (hereinafter the “Ship”), and the Center will issue a Certificate(Section 2(1) and (3)).
(2) Under the regulations on consignment in the Japanese Civil Law, re-consignment requires
prior approval of a Ship Owners. Therefore, the Center clearly states in this article that
services are contracted out, allowing the Center to do so (Section 2(2)).
(3) There are three types of Certificate depending on the length of its validity period: Annual
Certificate, Limited Annual Certificate and Specified Period Certificate.
(a) The Annual Certificate is valid for one year from April 1 to March 31(Section 2(5)).
(b) The Limited Annual Certificate is a certificate that is prepared for the circumstances of aship that is sold or newly built, which occurs from time to time. The validity is decided ona monthly basis to adapt to a case in which the Certificate is continued from the previous
year, or renewed for another year. There are two types of Limited Annual Certificates: one
is valid from April 1 to any end date in the middle of the fiscal year, and the other valid
from any start date in the middle of the fiscal year to the end of that fiscal year, the next
March 31 (Section 2(6)).
(c) The Specified Period Certificate is valid for a two-week period or a multiple thereof, froma start date (Section 2(7)).
(d) The start or end date of the Limited Annual Certificate or Specified Period Certificate is,respectively, the start or end date that the Ship Owners requests (Section 2(8) and (9)).
(e) If the owner of the ship changes, for instance, due to the ship's sale, the Certificate will
become invalid and this Contract under the terms and conditions hereof shall also be
terminated (Section 2 (10)). Therefore, the new owner of the ship will have to obtain a newcertificate in accordance with Sections 3 (1) and (2); provided, however, that if the newowner succeeds to the former owner of the ship by merger and acquisition, renaming andso forth, the new owner need only revise entries to the Certificate.

Section 3: Application for Certificates and Information to be Given(1) The Ship Owners shall use “the Application Form for Certificate of ‘HNS’ Response
Resource Deployment”(Form 1) (hereinafter the “Application Form”) for application for theissuance of the Certificate. The Application Form must include information such as the Ship's
specifics, Maritime Mobile Service Identity code (MMSI, only for the ships obtained MMSIcode), hull and machinery or protection and indemnity insurance coverage for the Ship and its
planned voyage in the designated areas (areas designated in Article 33-13 of the Regulation),and type and quantity of ‘HNS’ scheduled to be on board.
(2) The Ship Owners must send the application form to the Center either in writing or online by
the deadlines of March 20 (if that day is a bank holiday, the immediately preceding bankbusiness day) for the Annual Certificate or the Limited Annual Certificate Starting on April 1,

and the deadline of two days before the start date of the validity period (if that day is a bankholiday, the immediately preceding bank business day) for the Limited Annual Certificate
Starting Midyear or Specified Period Certificate, provided, however, that if the Ship Owners
needs the issuance of the Certificate for an emergency, the Ship Owners may makeemergency application no later than 15:00 on the previous day (if that day is a bank holiday,
the immediately preceding bank business day) before the start date of the validity period.
(3) The Center shall promptly issue a Certificate when the fee payment or its equivalent is duly
made in accordance with Section 4.
(4) The Ship Owners must promptly notify the Center of any change, if any, to information on
the Application Form.
Form 1:
Application Form for Certificate of ‘HNS’ Response Resource Deployment
Notes(1) The application for the issuance of the Certificate is made by filling out the Application Formfor Certificate of ‘HNS’ Response Resource Deployment (Form 1: hereinafter the “ApplicationForm”) and sending the completed form to the Center. In usual cases, to facilitate and acceleratethese steps, the application can be made via the internet through the Center's website (Section
3(1)).
(2) For (1) above, the Ship Owners in filling out the Application Form must provide to the Center
information, such as the Ship's specifics, Maritime Mobile Service Identity code (MMSI, only
for the ships obtained MMSI code), applicable H&M and P&I coverage, voyage schedule inthe designated areas (areas as defined in Article 33-13 of the Regulation), and type and quantityof 'HNS' scheduled to be on board so that the Center can refer to such information on its data
file in order for it to properly ensure Emergency Response (second sentence of Section 3(1)).
(3) Application for the issuance of certificate may be made to the Center either in writing or online.
The deadlines are as follows (Section3 (2)):(a) For Annual Certificate or Limited Annual Certificate Starting on April 1:
The Center has fixed the deadline as March 20 since the issuance of certificate for thefollowing year is most likely to be congested at the end of the fiscal year. However, if payment
is not made to the bank account designated by the Center in time, the Certificate will not be
issued even if other steps for the application are completed (hereinafter the same shall applyin (b) below).
(b)For Limited Annual Certificate Starting Midyear or Specified Period Certificate:
The deadline is set to be two days before the start date of the validity period.
(c) For emergency application (if the deadline given in (a) or (b) is overdue):
Even after the deadline given in (a) or (b), an emergency application for issuance of a
Certificate will be accepted if application is made no later than 15:00 on the day before thestart date of the validity period, provided that even if the application step is completed, theCertificate will not be issued unless the payment of an overdue fee in addition to theCertificate fee is made to the bank account designated by the Center no later than 15:00 on
the day before the start date of the validity period.
(4) The Certificate will be issued promptly, via email, etc., when the application process has been

completed, and the payment of the Certificate fee is made to the bank account designated by
the Center pursuant to the Fare Regulation referred to in Section 4, which is confirmed by
the Center (Section 3(3)).

Section 4: Payment of Certificate fees
(1) The Ship Owners, when applying for the Certificate, must remit the fee, etc., which is provided
by the Center under the Fare Regulation Relating to ‘HNS’ Materials, Equipment and Experts
Deployment Certificate Issuance (hereinafter “Fare Regulation”), to the bank accountdesignated by the Center.
(2) The due date for payment of the Certificate fee shall be as follows. Payment shall be deemedcompleted when full amounts of the Certificate fee, service charges and other items are paid
(hereinafter “Certificate fee and other items”) to the bank account designated by the Center.
(ⅰ) For Annual Certificate or Limited Annual Certificate Starting on April 1, March 20 (if thatday is a bank holiday, the immediately preceding bank business day)(ⅱ) For Limited Annual Certificate Starting Mid-year or Specified Period Certificate, two days
before the start date of the validity period (if that day is a bank holiday, the immediately
preceding bank business day).
(3) If the Ship Owners fails to make the payment by the due date as provided in the preceding
paragraph in a situation where the Ship Owners has applied for emergency issuance of theCertificate in accordance with the provisos of Section 3 (2), in addition to the Certificate feesand other items the Ship Owners shall pay an additional fee fixed by the Center as set forth in
the Fare Regulation no later than 15:00 on the day before the start date of the validity period of
the Certificate (if that day is a bank holiday, the immediately preceding bank business day). In
this case as well, payment shall be deemed completed when full amounts of the Certificate fee
and other items and the additional fee to arrive in the bank account designated by the Center.
(4) The Ship Owners, by writing to the Center, may cancel the application for issuance of theCertificate, provided however, that the Ship Owners shall pay a cancellation fee of 10,000 yen
if the cancellation is applied after the Center receives the Certificate fee. If the Ship Owners
cancels after the validity period of the Certificate begins, the Center will not refund theCertificate fee.
Notes(1) The amount of the Certificate fee depends on the ship size (gross tonnage) and the type of
Certificate (Annual Certificate, Limited Annual Certificate or Specified Period Certificate).
The Ship Owners must remit the Certificate fee and other items in full to the bank accountdesignated by the Center as per Fare Regulation Relating to HNS Materials, Equipment andExperts Deployment Certificate Issuance (hereinafter the “Fare Regulation”) (Section 4(1)).
(2) Payment of the Certificate fee and other items must be remitted to the bank account designatedby the Center. The payment shall not be deemed completed unless the whole amount of theCertificate fee and other items is received in the said bank account, even if the Ship Owners
on their side have completed remittance. Even if the Ship Owners have completed theremittance, the Certificate fee and other items may not be transferred to the Center's bank

account on that same day, and in such cases the payment is deemed incomplete.
The provision here clarifies that the payment is deemed as completed by the Center's receiptof the whole amount at its bank rather than the Ship Owners' remittance. (Section 4(1), (2) and(3))(3) The deadline of the Certificate fee payment is the same as the deadline of the application for
the Certificate (Section 4(2) and (3)). Please see the examples below showing the payment
deadline and the start date of the validity period. Bank holidays are underlined.
(a) Type of Certificate: Specified Period Certificate / Starting Date of Validity: Tuesday (italics)
・ When Monday is a business day, payment deadline is Friday of the previous week (M. T.
W. Th. F. Sa. Su. M. T.)・ When Monday is a bank holiday, payment deadline is Thursday of the previous week (M.
T. W. Th. F. Sa. Su. M. T.)・ When Friday is a bank holiday, payment deadline is Thursday of the previous week (M. T.
W. Th. F. Sa. Su. M. T.)・ When Wednesday, Thursday and Friday are bank holidays, payment deadline is Tuesdayof the previous week (M. T. W. Th. F. Sa. Su. M. T.)(b) Type of Certificate: Specified Period Certificate / Starting Date of Validity: Friday, Jan. 4(italics)
Payment deadline is December 27 due to New Year's holidays (Dec.31, Jan. 1, 2 and 3) andthe bank holidays (Sat., Sun. and National Holiday).(Dec. 27, 28, 29, 30, 31, Jan. 1, 2, 3, 4)(c) Type of Certificate: Annual Certificate or Limited Period Certificate Starting on April 1･ When March 20 is a bank business day, deadline is March 20･ When March 20 is Sunday, deadline is one prior business day: Friday, March 18
・When March 20 is Saturday, deadline is one prior business day: Friday, March 19(4) When the Certificate is applied for in an emergency situation, as provided in Section 3 (2),and the deadline for payment provided in Section 4 (2) has passed, the Ship Owners is required
to pay an additional fee. The additional fee shall be paid no later than 15:00 on the day before
the start date of the validity period (if that day is a bank holiday, the immediately precedingbank business day) per the Fare Regulation (Section3(3)).
(5) The Ship Owners at any time may cancel the application for the Certificate by sending awritten notice to the Center. The cancellation fee and refund of the Certificate fee and otheritems are as follows (Section 4 (4)). Please make an inquiry to the Center about the issuancestatus of the Certificate.
(a) If the Certificate has not yet been issued at the time of receipt of the written cancellation
notice, the Center will refund the Ship Owners the balance after deducting from the sum
received at the Center’s designated bank account the bank transfer fee incurred for making
the refund.
(b) If the Certificate has been issued but the validity period has not yet commenced at thetime of receipt of the written cancellation notice, the cancellation fee will be ¥10,000, andthe Center will refund the Ship Owners the amount set forth in the Fare Regulation.
(c) If cancellation is made on or after the validity period of the Certificate has commenced,
the Certificate fee and other items will not be refunded.
(6) The validity period of the Specified Period Certificate is set at 14 days or multiples thereof. It
is possible that many of the holders of this type of certificate will be oceangoing vessels. As
their voyage schedule is subject to change, the holders are expected to request a change(shortening or extension) of the validity period. In these cases, the Certificate should becancelled or an application should be newly made. If the ship's voyage or stay extends beyond

the validity period, the Ship Owners shall obtain a Specified Period Certificate (for a minimumof 14 days) for its additional stay or voyage.

Section 5: Request for Emergency Response(1) If an ‘HNS’ spill occurs from the Ship or there is a threat thereof in the designated areas asprovided in Article 33-13 of the Regulation (hereinafter the “Designated Areas”) and theEmergency Response to such an incident is needed in the Designated Areas, the Ship Owners
or the Master of the Ship (hereinafter the “Ship Owners/Master”) shall notify the Center ofsuch incident immediately, and may request the Center to take Emergency Response.
(2) Along with the notice provided in the preceding paragraph, the Ship Owners /Masters shallprovide the Center with a summary of the incident, type, characteristics and quantity of ‘HNS’,
the Ship's condition, weather and sea conditions and any other information necessary or
helpful for the Center's Emergency Response.
Notes(1) “Emergency Response” means, as provided in Section 1, actions taken by the Center againstthe ‘HNS’ spill or a threat thereof from the Ship regardless of whether being under navigation
or not within the Designated Areas, including initial pollution prevention and control
operations, and firefighting operations to extinguish and control the fire and so forth, after
prompt arrival (within approximately 2-3 hours) at the incident site (Section 5(1)).
(2) The Ship Owners/Master and crewmembers of the Ship may often be unable to deal with an‘HNS’ incident if it involves an ‘HNS’ tanker. The Ship Owners/Master can contact the Center
immediately to request Emergency Response to an ‘HNS’ incident or a threat thereof as
provided hereunder. In such cases, the Ship Owners/Master shall give the Center necessary
information so that the Center can take appropriate Emergency Response (Section 5(2)).
(3) The ‘HNS’ incident is potentially exposed to a danger of ignition of fire and/or explosion, or a
danger to the human body, depending on ‘HNS’ type, characteristics, quantity, etc. Therefore,
the Ship Owners/Master should recognize that it is essential for the Center to have theinformation of ‘HNS’ in order to take safe and appropriate Emergency Response.

Section 6: Implementation of Emergency Response(1) In the event that an Emergency Response is requested pursuant to the preceding section, theCenter shall collect necessary information in connection with ‘HNS’ from the Ship
Owners/Master and other relevant parties such as the charterers, shipper, consignee and ‘HNS’
manufacturer (hereinafter “HNS-relevant Parties”), to determine the appropriate Emergency
Response. In response to the Center's request, the Ship Owners/Master shall provide theCenter with the necessary information it possesses, and shall make its best efforts to make the
HNS-relevant Parties provide the Center with necessary information.
(2) The Center shall take appropriate Emergency Response, including dispatch of a ship,
investigation and assessment of pollution by ‘HNS’ spill, facilitating ‘HNS’ evaporation orcontrolling and cleaning up by spraying water or other methods, treatment of ‘HNS' bysolidifying agents spray, and other ‘HNS’ prevention and cleanup operations, firefighting toextinguish and control fire, warning third parties and the public about the ‘HNS’incident, andother appropriate measures of Emergency Response.
(3) The Center shall inform the Ship Owners/Master of the Emergency Response plan
immediately after details are determined. If the Ship Owners/Master disagrees with theCenter's Emergency Response, the Ship Owners/Master shall immediately communicate thedisagreement to the Center.
(4) Emergency Response shall be taken by the Center or a disaster response contractor with whom
the Center has concluded a contract in advance for the Emergency Response operations(hereinafter the “Disaster Response Contractor”). The action taken by the Disaster Response
Contractor shall be deemed as taken by the Center.
(5) The Center shall conduct the Emergency Response in good faith and with utmost care.
(6) The Emergency Response by the Center shall not be continued more than 24 hours after its
start.
(7) In the event that the Center finds that its Emergency Response alone is not enough to copewith the situation, it shall immediately inform the Ship Owners/Master. The Ship
Owners/Master shall confer with the Center and the relevant parties with regard to theoperations under item 2 of Article 42-14 of the Law, response made by third party who is
entrusted by the Ship Owners/Master and other necessary measures, in order to takeappropriate action.
(8) Upon completion of the Emergency Response, the Center shall promptly submit a report on
the details of its Emergency Response to the Ship Owners.
Notes(1) The Center will collect relevant information from the Ship Owners/Master and other HNSrelevant Parties to immediately set up an appropriate Emergency Response plan and takeactions (Section 6(1) and (2)), which include:
・ Investigate and assess pollution from an ‘HNS’ spill in the incident area by gas detection andother measures
・ Facilitate ‘HNS’ evaporation, e.g., by spraying water, and clean up ‘HNS’ spills by spraying
chemical agents・ Control and clean up ‘HNS’ using gel bubbles and other methods
・ Prevent fire, extinguish fire in the initial stage and control fire spread・ Give warning at the incident site to third parties and the public(2) “HNS-relevant Parties” means the Ship Owners, the master of the Ship and:・ The charterers of the Ship
・ The shipper and consignee of ‘HNS’ laden on the Ship
・ The manufacturer of ‘HNS’ laden on the Ship
(3) The Center may not necessarily have full information about the ‘HNS’ tanker involved in theincident. The Ship Owners/Master shall immediately inform the Center of the type,characteristics and quantity of on-board ‘HNS’, and telephone numbers and other contact
details of the relevant parties, such as cargo owners, when the Ship Owners/Master requests
Emergency Response.
The Center might not be able to take Emergency Response if the Ship Owners/Master fails toproperly provide information on ‘HNS’ (second half of Section 6(1)).
(4) Upon the request of the Ship Owners/Master, the Center will instruct the nearest Disaster
Response Contractor to immediately dispatch one or two ships to the incident site, and they
will pursue the whole or a part of the response action as mentioned in the above paragraph (1).
The Disaster Response Contractor will pursue Emergency Response for the Center. Staff ofthe Center will also rush quickly to the site (Section 6(2) and (4)).
(5) The Center should make every effort to keep close communication with the Ship
Owners/Master by immediately giving the details of Emergency Response before theoperation and thereafter by communicating the progress. The Center shall promptly report thedetails of Emergency Response when it is completed (Section 6(3) and (8)).
The Center communicates with the Ship Owners/Master by means such as telephone, fax andemail. In case of phone calls, other means, including fax message and email, will follow sothat details of communication can later be confirmed.
(6) The Center will conduct Emergency Response operations for up to 24 hours, during which it
will conduct the response measures in collaboration with the Disaster Response Contractors
to the best of its ability. In the event, however, that the Center finds its initial Emergency
Response is or will not be enough to cope with the incident, the Center will coordinate withthe relevant parties and conduct further actions, including Item-2 Operation and other required
response such as response made by third party who is entrusted by the Ship Owners/Master(Section 6(5)-(8)).
In such cases, the Center will promptly advise the ship owner and consult with the relevant
parties as to whether they will continue with Item-2 Operation or terminate the Emergency
Response (Section 6(8)).

Section 7: Cost of Emergency Response(1) The Ship Owners shall pay the cost for the Emergency Response that the Center takes inaccordance with this Section.
(2) The Center shall charge the Ship Owners the following costs and fees:(ⅰ) Costs and fees of the Disaster Response Contractor for Emergency Response(ⅱ) Costs for the vessels, materials and equipment owned by the Center and used for
Emergency Response(ⅲ) Administrative costs of the Center for Emergency Response(ⅳ) Any other costs for Emergency Response, which are separately agreed upon between the
Ship Owners and the Center(3) Costs described in the preceding paragraph shall be discussed between the Ship Owners andthe Center. With regard to the materials used for Emergency Response, such as chemical agents,

Ship Owners may supply such materials instead of making monetary payment
through consultation between the parties.

(4) The Center shall not charge the Ship Owners or a third party any remuneration or expenseother than those provided in this section, such as a salvage fee, no matter what it is called.
(5) The Ship Owners shall promptly make payment of the cost charged by the Center. In theevent that the payment is not made within three months of the invoice date, interest thereon
shall be added, calculated by the interest rate in accordance with the Notice to Pronounce
Default Interest Rate against Late Payment in Government Contract (Notice of the Ministryof Finance No. 991, dated December 12, 1949).
Notes(1) The amount of fees to be charged shall be determined, taking into consideration of various
factors, such as ‘HNS’ prevention and cleanup capabilities and performance and fee schemesof the contractors. The parties shall discuss with each other to decide the amount to be charged,
taking into account past cases, practices and other factors (Section 7(3)).
(2) The scope and items of the costs to be charged are the same as for the Center's operations in
the past for preventing oil spills and cleaning up oil pollution, and Ship Owners may provide
the chemical agents and other materials instead of monetary payment. This Contract expressly
states that the Center will charge no salvage fee as marine salvage or other remuneration of asimilar nature since Emergency Response is taken as initial action for an incident (Section
7(2) and (4)).
(3) The Center usually sends an invoice after the Center completes discussions with and obtains
agreement from the relevant parties. Thus the Ship Owners would make a quick payment after
the receipt of the Center's invoice. If there is a delay, the Ship Owners shall add, in its payment,
default interest to be accrued from three months after the invoice. The rate of default interest
is fixed by the Ministry of Finance Notice for government contracts, and is reviewed anddetermined each year. For example, annual interest at 2.7% is announced by the Notice of the
Ministry of Finance No. 53 dated March 3, 2017 (applied as of April 1, 2017) (Section 7(5)).
Section 8: Liability for Loss or Damage(1) The Center with its due care shall conduct the operations provided in the Contract. The
Center shall be liable to the Ship Owners for their loss or damage caused by the negligenceof the Center.
(2)

Notwithstanding the preceding paragraph, the Center shall not be liable for any loss ordamage caused by failure or delay of the provision of necessary information by the Ship
Owners/Master or HNS-relevant Parties, or caused by the inaccuracy or insufficiency of theinformation provided, following the Center's request to provide the necessary information
for Emergency Response in accordance with Section 6(1),.

Notes(1) Section 6(5) provides that the Center shall take Emergency Response with good faith and its

due care, and the former part of Section 8(1) refers to this again and emphasizes the Center's
obligation to make due diligence in its performance under this Contract, including its
Emergency Response.
(2) Section 6(4) provides that all actions made by the Disaster Contractor, which has entered into
a contract with the Center beforehand in order to pursue Emergency Response (hereinafter“Disaster Contractor”), shall be deemed as those made by the Center. Thus, negligence of theDisaster Contractors shall be deemed as negligence of the Center.
(3) However, the Center assumes no liability for loss of or damage to the Ship Owners if it arises
not only from the negligence of the Center, but also from the failure/delay of provision ofnecessary information or inaccuracy/inadequacy in the information provided by the Ship
Owners/Master or HNS-relevant Parties (Section 8(2)). Even without Section 8(2), similar
conclusions could be reached through review of the facts with respect to contributory
negligence and/or causation. This Section has made it clear, focusing on the importance of
the information in ‘HNS’ accident.

Section 9: Use of materials and equipment by Ship certified
When the Ship Owners request the Center to take Emergency Response pursuant to Section
5 or conclude a contract with the Center regarding the operations under item 2 of Article 4214 of the Law, the Ship Owners may use the materials and equipment in order to prevent andclean up ‘HNS’ spill from the Ship under the supervision by the Center or Disaster Response
Contractor.
Notes
The Ship Owners are obliged to prepare and deploy the materials and equipment, and secure
experts in order to prevent and clean up ‘HNS’ spill (Article 39-5 of the Law), for which the
Ship Owners has obtained the Certificate. However, since professional expertise and training
are essential to use the materials and equipment appropriately, the Ship Owners may use thematerials and equipment for the prevention and clean-up of ‘HNS’ spill from the Ship only
when the Ship Owners requests the Center to take Emergency Response pursuant to Section 5or conclude a contract with the Center regarding the operations under item 2 of Article 42-14of the Law. This is, by having the staff of the Center and/or Disaster Response Contractor using
and/or supervising the use of the materials and equipment, to secure the safety and efficiencyof the operation and also to clarify the person who has a responsibility for any malfunction,
trouble or breakdown of the materials and equipment while in use thereof.
Section 10: Confidentiality
The Center shall keep and not disclose to any third party any confidential information
exposed to and obtained under this Contract without the prior written consent of the ShipOwners; provided, however, that the obligation under this Section shall not apply in the eventof reporting the information of performance of this Contract to public agencies.
Notes
This Section has made it clear that the Center should pay full attention in handling theinformation obtained in connection with issuance of the Certificate and/or implementation of
Emergency Response. However, reporting about the issuance of the Certificate and/or
implementation of Emergency Response to public agencies is excluded.
Section 11: Breach of Contract / Termination
If any of the followings occurs to the Ship Owners, the Center may terminate this Contract orsuspend any or all of its performance hereunder. In such cases, the Center will not refund thefees paid. If the Center suffers any loss or damage, the Ship Owners shall indemnify the Centerfor such loss or damage.
(ⅰ) If there is any breach of this Contract(ⅱ) If a court commences proceedings for bankruptcy, reorganization, liquidation, settlement,
rehabilitation (Hasan, Kaisha-Kosei, Kaisha-Seiri, Tokubetsu-Seisan, Minji-Saisei) for
the Ship Owners, or the Ship Owners is suspended from deals at the Security Clearing
House (Tegata Torihiki Teishi), or the Ship Owners stops or suspends its business or isdissolved, or in case the Ship Owners is a foreign national or corporation, if proceedings
arise corresponding to any of the above in the country to which it belongs(ⅲ) If the Ship Owners receives a disposition for to non-payment of tax or any other duties(ⅳ) If the Center finds that the Ship is not effectively insured with an appropriate H&M or
P&I policy
Notes(1) This section relates to “Termination of Consignment” Article 651 of the Civil Code, which
provides for the termination of consignment contract by either party at any time.
(2) Under this Contract, the Center is obliged to take Emergency Response to an ‘HNS’ incident
in addition to deployment of materials and equipment and securing of experts. This article
expressly states that the Center may terminate this Contract or may suspend any or all of theperformance arising out of this Contract if it is found that the Ship Owners do not havesufficient ability to pay for the Center's services. In particular, an enormous amount of costs
could be incurred for actions to respond to a maritime disaster, and thus the Contract obliges
the Ship Owners to effectively maintain H&M and P&I policies and coverage.

Section 12: Dispute Resolution(1) This Contract shall be governed by the laws of Japan. Any matter not provided herein or any

dispute arising out of this Contract shall be discussed between the parties with sincerity.
(2) Any disputes between parties arising out of this Contract shall be exclusively referred to
the Yokohama District Court.
Notes(1) Japanese laws are expressly specified as the governing law herein as the Ship Owners may be
a foreign company. This Contract does not refer to a resolution by arbitration, but it would notprohibit the parties to agree to refer to the arbitration such as the one by the Japan Shipping
Exchange, Inc. for the purpose of smooth resolution.
(2) In the event any dispute arises, paragraph 1 stipulates that the parties shall discuss the matterwith sincerity, aiming at a solution without taking legal action; but in case of failure to reacha settlement, Yokohama District Court has jurisdiction over such disputes.
Supplementary ProvisionThis Agreement shall come into force on April 1, 2010.
April 1, 2010
Maritime Disaster Prevention Center
Minato Mirai 3-3-1, Nishi-ku,
Yokohama, Kanagawa-pref., Japan
Notes
This Contract has the approval of “The special committee for cleanup and prevention ofdischarged Oil and HNS” (hereinafter the “Special Committee”).
This Special Committee is constituted by Maritime Disaster Prevention Center’s
relevant parties which are on behalf of Ships owners, Facility owners, Pilot Association,
P&I Club, Salvage Association and others.
This Contract shall come into force on April 1, 2010

Supplementary Provision○On April 1,2010, Articles 5,6 and 8 were revised.
○On April 1,2010, Chiba Base and Kawasaki Base were added to “List of Bases”.
○On April 1,2011, Imabari Base was added to “ List of Bases” and Shimonoseki Base
was transferred to Kita-kyushu Base.
○On October 1, 2013,Center become General Incorporated Foundation.

September 1, 2013
Maritime Disaster Prevention Center

Minato Mirai 3-3-1, Nishi-ku,
Yokohama, Kanagawa-pref, Japan○On October 1, 2017, Article 2 to 6 and 11 (which is ex-Article 9) were revised. Article 9
and 10 were added. This Contract, as revised, shall come into force on October 1, 2017.
September 1, 2017.
Maritime Disaster Prevention Center
Minato Mirai 4-4-5, Nishi-ku,
Yokohama, Kanagawa-pref Japan

For Section 2
Attached Table: Base

List of HNS Materials, Equipment and Expert Deployment Base
The Center shall prepare materials and deploy equipment that fulfill therequirements provided in Article 33-14 of the Regulation and secure experts
who fulfill the requirements provided in Article 33-15at the Deployment
Base indicated below.
Deployment Base
Chiba
Kawasaki
Yokosuka

Location of Base
Chiba/ Ichihara,
Chiba
Kawasaki,Kanagawa
Yokosuka,
Kanagawa

Main sea area in charge,
Tokyo Bay
Tokyo Bay
Tokyo Bay

Yokkaichi

Yokkaichi, Mie

Ise Bay

Osaka

Sakai / Izumi-Otsu,
Osaka

Himeji

Himeji, Hyogo

Seto Inland Sea (Osaka Bay /Harimanada area)
Seto Inland Sea (Osaka Bay /Harimanada area)
Seto Inland Sea (Osaka Bay /Harimanada area)

Wakayama
Mizushima

Wakayama,
Wakayama
Kurashiki,
Okayama

Seto Inland Sea (East area)

Imabari

Imabari, Ehime

Seto Inland Sea (East area)

Matsuyama

Matsuyama, Ehime

Seto Inland Sea (Middle
area)

Tokuyama

Shunan, Yamaguchi

Seto Inland Sea (West area)

Ube
Kitakyushu
Oita

Sanyo-onoda / Ube,
Yamaguchi
Kitakyushu,
FukuokaOita, Oita

Seto Inland Sea (West area)
Seto Inland Sea (West area)
Seto Inland Sea (West area)

Deployment Base as indicated above means a place prescribed in Ordinanceof the Ministry of Land, Infrastructure and Transport provided by Article 395 of the Law (Article 33-16 of the Regulation).