Terms & Conditions for the

services rendered by International

Bunker Services K.K.

EFFECTIVE FROM 1st. APRIL 2005

1. DEFINITIONS

a. ‘Seller’ – referring to INTERNATIONAL BUNKER SERVICES K.K.
b. ‘Buyer’ – referring to any individual or entity (company) placing orders for bunkers or marine lubricants with the Seller.
c. ‘Agreement’ – referring to the agreement made between the Buyer and the Seller for sale of bunkers and marine lubricants subject to these terms and conditions.
d. ‘Bunkers’ – referring to the fuel oil or marine lubricants offered from the Seller to the Buyer basis a specific agreement.
e. ‘Terms and conditions’ – are referring to these binding terms between Seller and Buyer that may be amended.

2. APPLICATION OF TERMS AND CONDITIONS

a. These terms are binding between Seller and Buyer unless other explicit written agreement has been entered into by both Seller and Buyer.

3. QUALITY

a. The Buyer alone shall bear the responsibility for the bunker ordered and whether same is meeting the requirements of the intended usage.
b. Seller will not be liable for any loss or consequential damages deriving from the off spec bunker.
c. The Seller cannot be held liable should the Buyer decide to use the bunker for other than what it is intended for.

4. QUANTITY

a. The quantity shall be determined by the official bunker delivery receipt signed by the Buyer representative and based on the official gauge of the barge/pipe/tank/truck delivering the product on behalf of Seller.
b. Any adjustment to volume due to temperature shall be guided by ASTM-IP petroleum measurement table.
c. In locations where local customs authorities determines the volume this will regarded as the correct and final quantity.

5. DELIVERY

a. Delivery should be done according to the agreement.
b. The Seller shall not be held liable for demurrage or any other loss occurred to Buyer due to congestion or prior commitments to barge operators.
c. Where the delivery is not done according to agreement and without doubt due to Seller’s negligence the Seller shall be liable for a documented loss. The time loss, however, is limited to a maximum of four days, calculated at the time charter rate equal to the market charter agreements. However the Seller shall not be liable for any loss which the Buyer may suffer in connection with lost contracts or lay cans and the liability shall be limited to the costs of repair of machine components. In case of repair, 15 % of the invoiced value of the spare parts shall be deducted from the compensation for each year or fraction of a year the replaced part has been in use.
d. The Seller cannot be held liable for any consequential damages.
e. The Seller shall not be held liable for interrupted or delayed deliveries due to circumstances beyond Seller’s control or in case of force majeure, perils of the sea or acts of god.
f. In case of prolonged duration of delivery above industry standard Seller shall be entitled to terminate the agreement immediately and without notice.
g. Where the Buyer for various reasons will not take delivery of the products ordered according to the agreement the Buyer should compensate Seller for any loss thereof.
h. Delivery has taken place and the risk of the bunker oil shall pass successively at the passage of the fixed bunker connections in the Buyer’s vessel. Representatives from the Buyer’s vessel shall be responsible for ensuring that the bunker oil is received in a safe way and without any liability whatsoever for the Seller.

6. PAYMENT

a. Buyer should make payment within the number of days, in the currency and to the bank specified in the agreement.
b. Any delay in payments is subject to percentage interest per month as stated on invoice.
c. All costs borne by the Seller in regards to collection of overdue will be for Buyer’s account.
d. Where the Buyer fails to pay for the delivery in time, the Buyer shall compensate the Seller for any cost which the Seller may incur in connection with recovery of his claim, including but not limited to legal expenses and other costs related to such recovery.
e. In addition to the fact that the Buyer shall be liable for the payment of the purchase price and any costs.
f. The Buyer shall indemnify any cost (legal cost, attorney etc.), which the Seller may defray in connection with recovery of his claim.

7. CLAIMS

a. Claims issued later than 14 days after delivery will not be considered valid by the Seller.
b. The Buyer must make full payment according to the agreement whether claims are issued or not. No reduction/short payment will be accepted. Should the Buyer nevertheless setoff, Seller is entitled to launch a penalty against Buyer.
c. The parties make an agreement to the effect that an analysis of the sealed representative samples drawn on delivery may alone form the basis of documentation with regard to the fact that the bunker oil was “off-spec.” on delivery.
d. Barge sample should be regarded as the valid sample for claims unless otherwise agreed.
e. Complaints about differences in quantity will only be considered on the condition that the Seller is notified immediately and prior to the signing of delivery receipts.
f. The Buyer shall be responsible for ensuring that the shipping company observes all health and safety regulations with regard to the receipt and use of bunker oil and the Seller disclaims any liability whatsoever in relation thereto.
g. In case of an oil spill when bunkering, the Buyer and the Seller shall jointly coordinate their efforts in order to control the damage as much as possible, irrespective of whether one party submits that the other party is responsible for the mishap. Positive expenses for pollution control shall be divided equally between the parties until the degree of guilt on both sides has been established by agreement or judgment. Reimbursement of half the expenses paid shall fall due on demand.

8. AGREEMENT

a. These terms and conditions are considered the basis of the agreement whether local guidelines may be present for warranty, price, quality or other customs of the trade.
b. All the clauses in this agreement should be viewed separately and one clause should not exclude another clause.

9. TERMINATION

a. The Seller reserve the right to terminate this agreement if the one of the following – but not limited to – points are arising
i. Buyer is in breach of the agreement or any of these terms and conditions.
ii. Buyer fails to accept the partly or fully the products at the time and location as per agreement.
iii. Buyer prior delivery if Seller assesses that the financial conditions of the Buyer entails a risk to Seller.
iv. In case of force majeure and acts of god.

10. GOVERNING LAW AND JURISDICTION

a. This present agreement is subject to English law with the Admiralty and Commercial Courts in London. As venue unless otherwise provided in clause 6. In case of breach of contract by the Buyer, the Seller shall moreover be entitled to take such legal action in any court of law in any state or country which the Seller may choose and which the Seller finds relevant in order to safeguard or exercise the Seller’s rights in pursuance of this present agreement.