(For Articles 39 and 39-4, Law Relating to the Prevention of Maritime Pollution and Maritime
Disasters)
Contract for Oil Removal Equipment 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 Japaneseterms and notes, which always take precedence.
Warning 2:
Please also note that the ‘Specific Oil’ defined herein means ‘Specific Oil’ provided in item 1 inparagraph 1 of Article 38 of Law Relating to the Prevention of Maritime Pollution and Maritime
Disasters (Law No. 136 of 1970 as revised).
Section 1: General Provisions(1) This Contract for Oil Removal Equipment 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 therelevant ship is leased, the lessee) and, if applicable, the person who acted on behalf of thesaid ship owner, who applied for issuance of a certificate (hereinafter the “Ship Owners”),
with respect to the Center's service for deploying Oil Removal Equipment

to respond to an

incident relating to a large amount of Specific Oil in the Designated Areas and the Center'sissuance of a Certificate of Oil Removal Equipment Deployment (hereinafter the“Certificate”) thereon, as well as initial preventive actions to respond to an incident relating
to a large amount of Specific Oil in the Designated Areas, fire extinction/spread prevention
and other emergency responses in the case of a threat of the said incident (hereinafter“Emergency Response”), in accordance with the Law Relating to the Prevention of Maritime
Pollution and Maritime 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 as revised, hereinafter the “Regulation”). The Ship Owners shall be deemed tohave agreed to the terms and conditions hereof at the time they applied for issuance of theCertificate, and this Contract shall become valid and enforceable at the time when theCertificate is issued.
(2) In this Contract, the following terms shall have the following respective meanings.
(ⅰ) Specific Oil: specific oils as set forth in item 1 in paragraph 1 of Article 38 of the Law.

(ⅱ) large amount of Specific Oil: Specific Oil exceeding the reference value in density andquantity prescribed in item 1 in paragraph 1 of Article 38 of the Law and the Article 30 of
the Regulation.
(ⅲ) Oil Removal Equipment: equipment for getting rid of Specific Oil provided in the Article
33-10 of the Regulation.
(ⅳ) Designated Areas: sea areas prescribed in Article 33-9 of the Regulation (i.e. sea areas
provided in items 2 to 4 of Article 33-6 of the Regulation).
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 deploy Oil
Removal Equipment, and where, if a spill incident of a large amount of Specific Oil or a threat
thereof occurs near the Center's stockpile base for the said 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 sea areas provided in Article 33-9 of theRegulation).
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 todeploying equipment for getting rid of Specific Oil, or the so-called “persistent oil”. Therefore,
as for the so-called “non-persistent oil”, such as diesel fuel oil, kerosene and so forth and HNS,
Noxious liquid substance, such as benzene, xylene and so forth, please refer to “Contract for
HNS Response Resource Deployment and Emergency Response Terms and Notes”.
(2) In this Contract, Specific Oil means any persistent hydrocarbon oil including crude oil,heavy oil and lubricating oil.

Section 2: Deployment of Oil Removal Equipment, 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 deploy the Oil Removal Equipment as
required under the Law and the Regulation, at the Center's base for the Oil Removal
Equipment (hereinafter the “Base”) listed in the attached table, for the ship, with respect towhich the Ship Owners files the application (hereinafter the “Ship”).
(2) The Center may enter into agreements with contractors, if necessary, to store and maintainthe Oil Removal Equipment at the Base and/or to make Emergency Response.
(3) The Center shall issue a certificate to the Ship Owners to certify deployment of the Oil
Removal Equipment , as provided in the preceding two paragraphs hereof.
(4) The Center will issue one of two types of Certificates: Annual Certificate or Specified Period
Certificate. The Ship Owners shall select one of these at the time 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 Specified Period Certificate shall be valid for a period of 4 weeks, 8weeks, 12 weeks or
26 weeks from the start date.
(7) The start date of the validity period of a Specified Period Certificate shall be, in principle,
the preferable start date that the Ship Owners states in the application form, in accordancewith Section 3 (1).
(8) 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 Oil Removal Equipment and completes fee payment, pursuant to theprovisions hereof, the Center will prepare and deploy the Oil Removal Equipment as
required by the Law and the Regulation, for the ship for which the Ship Owners makes anapplication (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 two types of Certificate depending on the length of its validity period: 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 Specified Period Certificate is valid for a period of 4 weeks, 8weeks, 12 weeks or 26
weeks from the start date (Section 2(6)).
(c) The start date of the Specified Period Certificate is the start date that the Ship Owners

(d)requests (Section 2(7)).
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 (8)). 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 2(8)).

Section 3: Application for Certificates and Information to be Given(1) The Ship Owners shall use “the Application Form for Certificate of Oil Removal Equipment
Deployment” (Form 1) (hereinafter the “Application Form”) for application for the issuanceof the Certificate. The Application Form must include information such as the Ship's specifics,
Maritime Mobile Service Identity code, hull and machinery or protection and indemnity
insurance coverage for the Ship and its planned voyage in the Designate Areas (areas
designated in Article 33-9 of the Regulation), and type and quantity of the Specific Oilscheduled 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, and the deadline of two days before the start date fo
the validity period (if that day is a bank holiday, the immediately preceding bank businessday) for the Specified Period Certificate, provided, however, that if the Ship Owners needs
the issuance of the Certificate for an emergency, the Ship Owners may make emergency
application no later than 15:00 on the day

before the start date of the validity period (if thatday is a bank holiday, the immediately preceding bank business day).
(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 Oil Removal Equipment Deployment
Notes(1) The application for the issuance of the Certificate is made by filling out the Application
Form for Certificate of Oil Removal Equipment Deployment (Form 1: hereinafter the“Application Form”) and sending the completed form to the Center. In usual cases, tofacilitate and accelerate these steps, the application can be made via the internet through theCenter's website (Section 3(1)).
If your desired validity period of Certificate cannot be found in any of the Specified Period
Certificate, multiple applications for the Specified Period Certificate need to be made bycombining the validity period of each Specified Period Certificate (4-week-period Certificate,
8-week-period Certificate, 12-week-period certificate or 26-week-period certificate). For
example, if your desired validity period is 34 weeks, then two applications – one for
26-week-period Certificate and the other for 4-week-period Certificate with the validity
periods of the two certificates back to back – shall be made.
(2) For (1) above, the Ship Owners in filling out the Application Form must provide to theCenter 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 in the Designated Areas, and type and quantity of the Specific Oil scheduled
to be on board so that the Center can refer to such information on its data file in order for it toproperly ensure Emergency Response in the Designated Areas (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 the other steps for the application are completed (hereinafter thesame shall apply for (b) below).
(b)For 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 accountdesignated 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 isprovided by the Center under the Fare Regulation Relating to Oil Removal Equipment
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, March 20 (if that day is a bank holiday, the immediately
preceding bank business day)(ⅱ) For Specified Period Certificate, two days before the start date of the validity period (ifthat 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 periodof 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 theCenter.
(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 or Specified Period Certificate). The Ship Owners must remit
the Certificate fee and other items in full to the bank account designated by the Center as per
Fare Regulation Relating to Oil Removal Equipment 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 accountdesignated by the Center. The payment shall not be deemed completed unless the wholeamount of the Certificate 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 havecompleted the remittance, 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 deemedincomplete.
The provision here clarifies that the payment is deemed as completed by the Center'sreceipt of 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)
and the bank holidays (Sat., Sun. and National Holiday) (Dec. 27, 28, 29, 30, 31, Jan. 1, 2,
3, 4)(c) Type of Certificate: Annual Certificate･ 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
preceding bank 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 is ¥10,000, and theCenter will refund the amount set forth in the Fare Regulation to the Ship Owners.
(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 4 weeks, 8 weeks, 12 weeks
or 26 weeks. 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, theCertificate should be cancelled or an application should be newly made. If the ship's voyage
or stay extends beyond the validity period, the Ship Owners shall newly obtain any one or
combination of the 4-week-period Certificate, 8-week-period Certificate, 12-week-period
Certificate and 26-week-period Certificate for its additional stay or voyage.

Section 5: Request for Emergency Response(1) If large amount of Specific Oil spill occurs from the Ship or there is a threat thereof in the
Designated Areas and the Emergency 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 of such incident immediately, and may request theCenter to take Emergency Response; provided, however, that this shall not apply to such cases
where large amount of Specific Oil spill or a threat thereof occurs from the Ship which isengaged in Ship-to-Ship Transfer (including preparation work therefor) in the Designated
Areas.
(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 theSpecific Oil, the Ship's condition, weather and sea conditions and any other informationnecessary or helpful for the Center's Emergency Response.
Notes(1) “Emergency Response” means, as provided in Section 1, actions taken by the Center against
large amount of Specific Oil 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 thefire and so forth, after prompt arrival (within approximately 2-3 hours) at the incident site.
Under this Contract, adding to issuance of the Certificate, the Center will provide
Emergency Response service in the Designated Areas at the Ship Owners/Master’s request.
However, in consideration of the risk of Ship-to-Ship Transfer (hereinafter the “STS”) andthe present situation where it is hard to say that safety measures for the STS is established,even if large amount of Specific Oil spill occurs from the Ship which is engaged in STS(including preparation work therefor) or there is a threat thereof in the Designated Areas,such cases are not covered by Emergency Response and the Center will not provide
Emergency Response service through this Contract. This is to make it clear that Emergency
Response is not for ensuring the safety of STS operation. The Center will not provide
Emergency Response service in such cases, but the Ship Owners may conclude a contract
with the Center for Item-2 Operation (Section 5(1)).
(2) The Ship Owners/Master and crewmembers of the Ship may often be unable to deal withlarge amount of Specific Oil spill incident if it involves a Specific Oil tanker. The Ship
Owners/Master can contact the Center immediately to request Emergency Response to large
amount of Specific Oil spill 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 cantake appropriate Emergency Response (Section 5(2)).
(3) A large amount of Specific Oil spill incident is potentially exposed to a danger of ignition offire and/or explosion, depending on type, characteristics, quantity, etc. of the Specific Oil.
Therefore, the Ship Owners/Master should recognize that it is essential for the Center tohave the information of the Specific Oil, etc. 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 the Specific Oil from the Ship
Owners/Master and the other relevant parties such as the charterers, shipper and consignee(hereinafter “Specific-Oil-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 makethe Specific-Oil-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 large amount of Specific Oil spill, preventionof spreading large amount of Specific Oil spill by expanding oil booms, removal of large
amount of Specific Oil spill, treatment of large amount of Specific Oil spill by spraying
chemical dispersant or other chemical agents, and other Specific Oil spill response
operations, firefighting to extinguish and control fire, warning third parties and the public
about the incident, and other 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 withwhich the Center has concluded a contract in advance for the Emergency Response
operations (hereinafter the “Disaster Response Contractor”). The action taken by theDisaster 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 otherSpecific Oil-relevant Parties to immediately set up an appropriate Emergency Response planand take actions (Section 6(1) and (2)), which include:
・ Investigate and assess pollution from the Specific Oil spill in the incident area by gas
detection and other measures
・ Prevent spreading large amount of Specific Oil spill by expanding oil booms etc.
・ Removal of large amount of Specific Oil spill
・ Treatment of large amount of Specific Oil spill by spraying chemical dispersant or otherchemical agents・ 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) “Specific Oil-relevant Parties” means the Ship Owners, the master of the Ship and:・ The charterers of the Ship
・ The shipper and consignee of Specific Oil laden on the Ship
・ The employer of the person(s) who conducted an action (or inaction) which presumablycaused the spill(3) The Center may not necessarily have full information about the Specific Oil tanker involvedin the incident. The Ship Owners/Master shall immediately inform the Center of the type,characteristics and quantity of on-board Specific Oil, and telephone numbers and othercontact details of the relevant parties, such as cargo owners, when the Ship Owners/Masterrequests Emergency Response.
The Center might not be able to take Emergency Response if the Ship Owners/Master fails toproperly provide information on Specific Oil (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. Staffof the 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
the details 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 otherrequired 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 throughconsultation 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 Specific Oil prevention and cleanup capabilities and performance and fee
schemes of the contractors. The parties shall discuss with each other to decide the amount tobe 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 the Ship Owners may
provide the chemical agents and other materials instead of monetary payment. This Contract
expressly states that the Center will no charge no salvage fee as marine salvage or other
remuneration of a similar 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 ofdefault interest is fixed by the Ministry of Finance Notice for government contracts, and isreviewed and determined 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 Specific Oil-relevant Parties, or caused by the inaccuracy or insufficiencyof the information 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 enteredinto 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 the Disaster 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 ofprovision of necessary information or inaccuracy/inadequacy in the information provided by
the Ship Owners/Master or Specific-Oil-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 large amount of Specific Oil spill accident.

Section 9: Use of Oil Removal 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
42-14 of the Law, the Ship Owners may use Oil Removal Equipment in order to remove andclean up large amount of Specific Oil spilled from the Ship under the supervision by theCenter or Disaster Response Contractor.

NotesThe Ship Owners are obliged to deploy the Oil Removal Equipment in order to remove andclean up Specific Oil spill (Article 39-5 of the Law), for which the Ship Owners has
obtained the Certificate. However, since professional expertise and training are essential touse the Oil Removal Equipment appropriately, the Ship Owners may use the Oil Removal
Equipment for the removal and clean-up of Specific Oil spilled from the Ship only when the
Ship Owners request the Center to take Emergency Response pursuant to Section 5 orconclude 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 Oil Removal Equipment, to secure the safety andefficiency of the operation and also to clarify the person who has a responsibility for any
malfunction, trouble or breakdown of the Oil Removal 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
or suspend any or all of its performance hereunder. In such cases, the Center will not refund
the fees paid. If the Center suffers any loss or damage, the Ship Owners shall indemnify theCenter for 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 disposition for 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 a large amount ofSpecific Oil spill incident in addition to deployment of Oil Removal Equipment. 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
not prohibit 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 Provision(Effective Date)
1. This Agreement shall come into force on September 1, 2017.
(Transitional Measure)
2. The start date of the validity period of the Certificate under this Contract shall be on or after
October 1, 2017.
3. The ex-Contract for Oil Removal Equipment Deployment Certificate (hereinafter

“ex-Contract”) shall be abolished after September 30, 2017, and from October 1, 2017 onwards
the Certificate issued under the ex-Contract shall be deemed to have been issued under thisContract, to which this Contract shall apply.
September 1, 2017
Maritime Disaster Prevention Center
Minato Mirai 4-4-5, Nishi-ku,
Yokohama, Kanagawa-pref., Japan

Notes(1) This Contract shall come into force on September 1, 2017. (Section 1of Supplementary
Provision)(2) The Ship Owners have any rights and obligation under this Contract from October 1, 2017
onwards even in the case of certificates issued under the ex-Contract for Oil Removal
Equipment Deployment Certificate dated October 1, 2013. Therefore, the Ship Owners, forexample, may request Emergency Response to the Center pursuant to Section 5 of thisContract (Section 3 of Supplementary Provision).

For Section 2
Attached Table: Base

List of Oil Removal Equipment Deployment Base
The Center shall deploy the Oil Removal Equipment as set forth in Article 33-10 of theRegulation at the Deployment Base indicated below.
Deployment Base

Location of Base

Main sea area in charge

Yokosuka

Yokosuka, Kanagawa

Tokyo Bay

Yokkaichi

Yokkaichi, Mie

Ise Bay

Osaka

Izumi-Otsu, Osaka

Himeji

Himeji, Hyogo

Wakayama

Kainan, Wakayama

Mizushima

Kurashiki, Okayama

Tokuyama

Shunan, Yamaguchi

Matsuyama

Matsuyama, Ehime

Ube

Ube, Yamaguchi

Seto Inland Sea (West area)

Kitakyushu

Kitakyushu, Fukuoka

Seto Inland Sea (West area)

Oita

Oita, Oita

Seto Inland Sea (West area)

Seto Inland Sea (Osaka Bay /Harimanada area)
Seto Inland Sea (Osaka Bay /Harimanada area)
Seto Inland Sea (Osaka Bay /Harimanada area)
Seto Inland Sea (East area)
Seto Inland Sea (Middle
area)
Seto Inland Sea (Middle
area)“Deployment Base” as indicated above means a place for deployment of the Oil
Removal Equipment under paragraph 4 of Article 33-11 of the Regulation.