15. CANCELLATION CHARGES AND INDEMNITY

(A) Cancellation Charges

The charterer may, by giving written notice effective upon its receipt by JAL, cancel charter agreement. In such event the charterer shall pay to JAL as cancellation charges:

(a)

10% of the charter price as provided in charter agreement if more than 60 days before the time scheduled for the commencement of the charter flight;

(b)

25% of the charter price as provided in charter agreement if within 60 days but more than 14 days (30 days for passenger charter flight) before the time scheduled for the charter flight departure;

(c)

50% of the charter price as provided in charter agreement if within 14 days (within 30 days for passenger charter flight) of the time scheduled for the charter flight departure;

(d)

100% of the charter price as provided in charter agreement if the notice to cancel is received on or after the scheduled time of departure.

In the event of such cancellation by charterer the difference between the cancellation charges, and charter price and other charges and expenses collected will be refunded to or collected from the charterer, as may be appropriate.

(B) Indemnity

In the event of such cancellation by charterer as provided in Paragraph (A) above after the issuance of passenger tickets, baggage checks or air waybill, the contract of carriage with passenger or shipper pursuant to such charter agreement shall be automatically cancelled and the charterer shall indemnify and hold JAL harmless from claims by passengers, shipper, consignee and other persons having any interest in the charter flight pursuant to such charter agreement, arising out of or in connection with such cancellation.