General Terms and Conditions for Sales - statoil.com Terms and Conditions for Sales . Crude Oil, ......

2011 version 1.0 1

General Terms and Conditions for Sales Crude Oil, Condensate and Petroleum Products including Liquefied Petroleum Gas 2011 version

2011 version 1.0 2

Contents

SECTION I ARTICLE 1. APPLICABILITY,DEFINITIONSANDINTERPRETATION.....4

SECTION II ARTICLE 2. FREEONBOARD(FOB)....................................................... 11

ARTICLE 3. COST,INSURANCEANDFREIGHT(CIF),COSTAND FREIGHT(CFR),CIFOUTTURNANDCFROUTTURN......18

ARTICLE 4. DELIVEREDATPLACE(DAP).............................................28

ARTICLE 5. FREECARRIER(FCA)........................................................36ARTICLE 6. CARRIAGEANDINSURANCEPAIDTO(CIP)AND CARRIAGEPAIDTO(CPT)..................................................38ARTICLE 7. DELIVEREDDUTYPAID(DDP)...........................................40

ARTICLE 8. DELIVEREDOUTOFTANK(EXTANK)..............................43ARTICLE 9. DELIVEREDINTOTANK(INTOTANK)...............................44ARTICLE 10.INTANKTRANSFER(ITT)....................................................45ARTICLE 11.FREEINTOPIPE(FIP)OREX-PIPE(EXP).........................46

SECTION III ARTICLE 12.SETTLEMENT.......................................................................48

ARTICLE 13. DUTIES,TAXESANDOTHERGOVERNMENTAL CHARGES............................................................................52ARTICLE 14.QUANTITYANDQUALITY....................................................54ARTICLE 15. FORCEMAJEURE................................................................56ARTICLE 16.NEWORCHANGEDREGULATIONS...................................58ARTICLE 17.SUSPENSION,TERMINATIONANDRIGHTOFRE-SALE... 59ARTICLE 18.LIMITATIONOFLIABILITY/INDEMNIFICATION...................61ARTICLE 19.GOVERNINGLAWANDLITIGATION/ARBITRATION..........62ARTICLE 20.COMPLIANCE.......................................................................65ARTICLE 21.MISCELLANEOUS................................................................67

SECTION IV SCHEDULE 1 LETTEROFINDEMNITYFROMTHESELLER....................71SCHEDULE 2STANDBYLETTEROFCREDIT:..........................................72SCHEDULE 3ISPSCODE/MTSAFORARTICLE2DELIVERIES:..............74SCHEDULE 4ISPSCODE/MTSAFORARTICLE3ORARTICLE4DELIVERIES:.....................................................75

2011 version 1.0 3

IntroductionSECTION I

2011 version 1.0 4

INT

ROD

UC

TIO

N

ARTICLE 1. APPLICABILITY, DEFINITIONS AND INTERPRETATION

1.1 ApplicabilityAlloftheArticlesinSectionI(Introduction)andSectionIII(GeneralTerms)shallapplytoeverytransactiongovernedbytheseGT&Cs.InrespectoftheArticleslistedunderSectionII(“DeliveryTerms”),theapplicableArticleisthatwhichcorrespondstotheagreeddeliverytermfortheDeliveryasissetoutintheSpecialConditions.TheSchedulesunderSectionIVareapplicabletotheextentthisisspecifiedintheAgreement.

1.2 Definitions

Affiliate(s): InrelationtoaParty,acompanyorotherlegalentitythat(i)isdirectlyorindirectly controlledbysuchPartyor(ii)directlyorindirectlycontrolssuchParty,or(iii)is directlyorindirectlycontrolledbyacompanyorotherlegalentitythatalsodirectly orindirectlycontrolssuchParty.Forthepurposesofthisdefinition,“control” meanstherighttoexerciseorcausetheexerciseofmorethan50%ofthevoting rights.

Agreement:TheseGT&Cs(includingtheSchedules,whereapplicable)togetherwiththe SpecialConditions.

BankingDay: ADayotherthanaSaturday,Sundayorpublicholidaywhenbanksareopenfor businessinallregionsnecessarytomakepaymentspursuanttotheAgreement.

Barrel/BBL: 42U.S.standardgallonscorrectedto60°Fahrenheit.

Berth: Themooring,dock,anchorage,wharf,submarineline,singlepointorsinglebuoy orsingleberthmooringfacility,offshorelocation,offshorefacility,alongside barges,lightersoranyothermooringfacilitynominatedbytherelevantParty.

Buyer: ThepurchasingPartynamedintheSpecialConditions.

Cargo: TheagreedquantityoftheProductasdescribedintheSpecialConditions DeliveredtoortobeDeliveredtotheBuyer.

CertificateofInsurance: Adocumentissuedbyoronbehalfofaninsurer,evidencingtheinsuranceofthe Cargoandthebeneficiaryofsuchinsurance.

CIFOutturn/CFROutturn: ACIForCFRdeliverywherethequalityandquantityoftheProductisdetermined inaccordancewithArticle3.2.6.

CommencementofDischarge: Thetimeanddateforcommencementofdischargeasrecordedonthetimesheet/ statement(s)offactsissuedbytheTerminalor,intheabsenceofsuchdocument/ statement,thetimewhentheProductfirstpassesthepermanentmanifoldflange oftheMeansofTransportupondischargeoftheCargo.

CommencementofLoading: Thetimeanddateforcommencementofloadingasrecordedonthetimesheet/ statement(s)offactsissuedbytheTerminalor,intheabsenceofsucha document/statement,thetimewhentheProductfirstpassesthepermanent manifoldflangeoftheMeansofTransportuponloadingoftheCargo.

CompletionofDischarge: Thetimeanddateforcompletionofdischargeasrecordedonthetime sheet/statement(s)offactsissuedbytheTerminalor,intheabsenceofsuch document/statement,thetimeofDisconnectionofHosesfromtheMeansof Transportoncethedischargingoperationhasended.

2011 version 1.0 5

INT

ROD

UC

TIO

N

CompletionofLoading: Thetimeanddateforcompletionofloadingasrecordedonthetimesheet/ statement(s)offactsissuedbytheTerminalor,intheabsenceofsucha document/statement,thetimeoftheDisconnectionofHosesfromtheMeansof Transportoncetheloadingoperationhasended.

ConsignmentNote: ThedocumentthatisissuedbytheSellerortheTerminalortransporteror storageprovidertotheBuyerorendorsedtotheorderoftheBuyer,evidencing thecarriageand/orthechangeofownershipand/orthereceiptoftheCargo,as thecasemaybe.Suchdocumentmayinclude,butisnotlimitedto,abillof lading,arailwaybill,awaybill,atankwarrant,anoriginal,relevantreceiptor similardocumentorothercontractdocumentevidencingthecarriageand/orthe changeofownershipoftheCargo.

Day: A24hourperiodfrom00.00uptoandincluding23.59.

DealExecutionDate: ThedateonwhichthePartiesenterintotheAgreement.

Deliver/Delivery/Delivered: ThetransferoftitleandriskinaccordancewiththerelevantArticleinSectionII.

DeliveryDateRange: Theperiodoftime,agreedeitherintheSpecialConditionsorpursuanttothe procedurestatedintheSpecialConditions,duringwhichtheSellershallDeliver theCargototheBuyerandduringwhichtheMeansofTransportshallarriveatthe agreedplaceofDeliveryreadytoDeliverortotakeDeliveryoftheCargo,asthe casemaybe,dependingontheagreedDeliveryterm.

DisconnectionofHoses: Thefinaldisconnectionoftheloading/discharginghose(s)orarm(s)fromthe MeansofTransportoncetheloading/dischargingoperationhasended.DollarorUSD,orUS$,orUSDollars: ThecurrencyoftheUnitedStatesofAmerica.

ETA: TheestimatedtimeofarrivaloftheMeansofTransport,whichshallbegivenin goodfaithandonreasonablegroundsbutwithoutguarantee.

ExPipe/EXP: ThetermsforDeliverydescribedinArticle11.

ExTank: ThetermsforDeliverydescribedinArticle8.

ExcessTimeRate ThehourlyratetobepaidbyaPartyfortimeusedoverandabovethetime allowedforloadingordischargingtheCargo,asthecasemaybe.

FIP: ThetermsforDeliverydescribedinArticle11.

Gallon: AU.S.gallonof231cubicinchesat60°Fahrenheitandanabsolutepressureof 29.92inchesofmercury.

GovernmentalAuthority: Anynational,federal,state,provincial,regional,localormunicipalgovernmental body,agency,instrumentality,authorityorentityestablishedorcontrolledbya governmentorsubdivisionthereof,includinganylegislative,administrativeor judicialbody,oranypersonorentitypurportingtoacttherefore,includinganyport authority.

GT&Cs: TheseStatoilASAGeneralTermsandConditionsforSalesofCrudeOil, CondensateandPetroleumProductsincludingLiquefiedPetroleumGas2011 Edition,includingtheSchedulesattachedhereto.

Incoterms: Theterms,eitherindividuallydescribedforatypeofDeliveryortakenasawhole, aspublishedbytheInternationalChamberofCommerce(“ICC”)inthe“ICC OfficialRulesfortheInterpretationofTradeTerms2010”orassubsequently amendedbytheICC.

2011 version 1.0 6

INT

ROD

UC

TIO

N

IndependentInspector: Anentitythatprovidesindependentthirdpartyassessmentofquantityand/or quality.

IntoTank: ThetermsforDeliverydescribedinArticle9.

InTankTransfer/ITT ThetermsforDeliverydescribedinArticle10.

Laytime: ThetimeallowedfortheSellertoloadtheCargoontheVesselorthetimeallowed fortheBuyertodischargetheCargofromtheVessel.

LPG: Liquefiedpetroleumgases,includingpropaneandbutane.

MARPOL TheInternationalConventionforthePreventionofPollutionfromShips,1973,as modifiedbytheProtocolof1978,asamendedfromtimetotime.

MeansofTransport: AnyconveyanceusedforthetransportoftheCargosuchas,butnotlimitedto, theVessel,theRoadTanker,theRailcarorthePipeline.

MetricTon/MT: Aunitofweightequalto1,000kilograms.

NOR: NoticeofReadiness.

Notice: Awrittenstatement,requestorothercommunicationtobegivenbyonePartyto theotherPartyinthemannerspecifiedintheAgreement.

OCIMF TheOilCompaniesInternationalMaritimeForum.

OffshoreLoadedCrude: Crudeoilloadedatoneormoreoffshoreoilfields.

ParentCompany: Anentitywhichowns(directlyorindirectly)morethan50%ofthevotingrightsor otherwisecontrols(directlyorindirectly)aParty.

Party/Parties: TheBuyerand/ortheSellerindividually,orcollectively,asthecasemaybe,as namedintheSpecialConditions.

Pipeline: ThecoherentsystemofpipelinesfortransportationoftheProduct.

PointofDestination: TheplaceatwhichtheCargoisintendedtobedischargedfromtheRoadTanker/ RailcarorisactuallydischargedfromtheRoadTanker/Railcaror,wherethe contextrequires,theoperator,authorityorgoverningbodyofsuchplaceof destination.

PointofLoading: TheplaceatwhichtheCargoisintendedtobeloadedontheRoadTanker/ RailcarorisactuallyloadedontheRoadTanker/Railcaror,wherethecontext requires,theoperator,authorityorgoverningbodyofsuchplaceofloading.

PortofDestination: TheportortheTerminalatwhichtheCargoisintendedtobedischargedfrom theVesselorisactuallydischargedfromtheVesselor,wherethecontext requires,theoperator,authorityorgoverningbodyofsuchportortheTerminal.

PortofLoading: TheportortheTerminalatwhichtheCargoisintendedtobeloadedontheVessel orisactuallyloadedontheVesselor,wherethecontextrequires,theoperator, authorityorgoverningbodyofsuchportortheTerminal.

Product: Thecrudeoil,condensateorpetroleumproduct,includingLPGstatedinthe SpecialConditions.

2011 version 1.0 7

INT

ROD

UC

TIO

N

REACH: Regulation(EC)No1907/2006oftheEuropeanParliamentandoftheCouncilof 18December2006concerningtheRegulation,Evaluation,Authorisationand RestrictionofChemicalsubstances(REACH).

RoadTanker/Railcar Alorry/truckorrailtankcar,asapplicable,usedforthelandtransportationofthe Cargo.

Seller: ThesellingPartynamedintheSpecialConditions.

Ship-owner: TheregisteredownerorthedisponentowneroftheVessel,asapplicable.

SpecialConditions: Theagreedtermsandconditionscomprisingofawrittenagreementbetweenthe Partieswithrespecttothespecifictransactionor,intheabsenceofanysuch writtenagreement,anyoraland/orwrittencommunicationevidencingsuchagreed termsand/orwhichtheseGT&Csareincorporatedbyreferencetoformthe Agreement.

StandbyLetterofCredit: ThedocumentdescribedinArticle12.1andSchedule2

Statoil: StatoilASA.

StatoilVetting: ThedepartmentwithinStatoilthatisresponsibleforanyandallmattersandissues relatingtovesselvettingactivitiesand/orHSEQ(Health,Safety,Environment& Quality)acceptancefortheuseofsuchvesselsbyStatoilASAanditsAffiliate(s).

Tank: ThestructureusedforstorageandthroughputoftheProduct.

Terminal: Theloadingordischargingfacility,whetheronshoreoroffshoreor,wherethe contextrequires,theoperator,authorityorgoverningbodyofsuchterminal.

Typical: AqualityorcharacteristicoftenattributabletotheProductfromaparticularsource withoutguaranteeandnotamountingtoarepresentationorwarrantythatsuch typicalquality,characteristicorattributewillbepresentintheProductsupplied.

Vessel: Aship,tank-shiporbarge(self-propelledorotherwise)usedforthewaterborne transportoftheCargo.

Worldscale: The“NewWorldwideTankerNominalFreightScale”ascurrentonthedateofthe CommencementofLoadingoftheVessel.

WorkingDay: ADayotherthanaSaturday,SundayorpublicholidayinNewYorkand/orNorway and/ortheplaceofperformanceoftheobligationinquestionand/or,wherethe obligationistocommunicatesomething,theplaceofreceiptofthecommunication.

WWWW: WhetherinBerthornot;whetherinportornot;whetherinfreepratiqueornot; whethercustomsclearedornot.

2011 version 1.0 8

INT

ROD

UC

TIO

N

1.3 Incorporation and Interpretation

1.3.1 Incorporation

IncorporationoftheseGT&Cs(includingArticle19“Governinglawandlitigation/arbitration”)takesplacebyreference.Suchreferencecanbemadeeitherorally,inwritingorotherwise.EachPartyacknowledgesthatithasreceivedacopyofand/orviewedtheseGT&Csatwww.statoil.com.

1.3.2 Entire Agreement

TheAgreementshallconstitutetheentireagreementbetweenthePartiesandsupersedeallpreviousrepresentationsandprioragreements,whetheroral,writtenorotherwise.

1.3.3 Modification

TheAgreementmaynotbemodifiedunlessmutuallyagreedbythePartiesandsuchagreementisevidencedinwriting.

1.3.4 Warranties

TheBuyerandtheSellereachwarrantthatithasnotinconnectionwiththeAgreementrelieduponanyrepresentations,whetherwritten,oralorotherwise,madebyoronbehalfoftheotherParty,buthasreliedexclusivelyonitsownknowledge,judgmentandexpertise.

1.3.5 Conflict

IntheeventofanyconflictorinconsistencybetweentheGT&CsandtheSpecialConditions,theSpecialConditionsshallprevail.

1.3.6 Incoterms

FOB,CIF,CFR,DAP,FCA,CPT,CIPandDDPshallhavethemeaningdescribedinIncotermsexceptasmodifiedbytheAgreement.IncorporationofanyIncoterm(s)takesplacebyreferenceintheSpecialConditionsandshallonlybeapplicabletotheextenttheIncotermisnotmodifiedbytheAgreement.WherethereisanyinconsistencyorconflictbetweenIncotermsandtheAgreement,theAgreementshallprevail.

1.3.7 Headings

Fortheavoidanceofdoubt,theSectionandArticleheadingsandnumberingareforconvenienceonlyandshallnotaffecttheinterpretationoftheAgreement.

1.3.8 Interpretation

1.3.8.1 AnyreferencetoanyActofParliamentortolegislationofanysovereignstateorGovernmentalAuthority shallbedeemedtoincludeanyamendment,replacementorre-enactmentthereofforthetimebeingin forceandtoincludeanybylaws,licenses,statutoryinstruments,rules,regulations,orders,notices, directions,consentsorpermissionsmadethereunderandanyconditionattachingthereto.

1.3.8.2 Exceptwherethecontextrequiresotherwise,wordsdenotingthesingularincludethepluralandvice versa;wordsdenotinganygenderincludeallgenders;andwordsdenotingpersonsincludefirmsand corporationsandviceversa.

1.3.9 Severability

Whereanyterm,provisionorconditionoftheAgreementisdeclaredtobeillegal,invalidorotherwiseunenforceable(inwholeorinpart)byacourtortribunalofcompetentjurisdictionoreitherParty’scompliancewithanyrulingorresolutionoftheUnitedNationsortheEuropeanUnionhasalikeorsimilareffect,theremainingterms,provisionsandconditionsoftheAgreementshallcontinueinfullforceandeffectasiftheAgreementhadbeenexecutedwiththeillegal,invalidorunenforceableportioneliminated.

2011 version 1.0 9

INT

ROD

UC

TIO

N

1.3.10 Survivability

WhereforanyreasontheAgreementisterminated,suchterminationshallbewithoutprejudicetoanyrights,obligationsorliabilitiesofeitherPartythathaveaccruedatthedateofterminationbutthathavenotbeenperformedordischarged,andanypartsoftheAgreementhavinganyrelevancetheretooranybearingthereonshall,notwithstandingtheterminationoftheAgreementforanyreason,continueinforceandeffect.

1.3.11 Third party rights

NotermoftheAgreementisintendedto,ordoes,conferabenefitorremedyonanythirdparty.Aperson,companyorotherlegalentitywhoisnotapartytotheAgreementshallnothavenoracquirewhetherbyvirtueoftheContracts(RightsofThirdParties)Act1999underEnglishlaworanyotherlaworotherwiseanyrightsinrelationtotheAgreement.Furthermore,thePartiesheretomayrescindorvarytheAgreement,whetherinwholeorinpart,withouttheconsentofanythirdparty.

1.3.12 Waiver

ThefailureoftheSellerortheBuyeratanytimetorequireperformancebytheotherPartyofanyprovisionsoftheAgreementshallinnowayaffecttherightofaPartytorequestanyperformancewhichmaybeduethereafterpursuanttosuchprovision.NorshallthewaiverbytheSellerortheBuyerofanybreachofanyprovisionoftheAgreementbetakenorheldtobeawaiverofanysubsequentbreachofsuchprovisionoranyothertermorcondition.

2011 version 1.0 10

Delivery termsSECTION II

2011 version 1.0 11

DEL

IVER

Y T

ERM

S -

FOB

ARTICLE 2. FREE ONBOARD (FOB)

2.1 Risk and titleNotwithstandinganyrightoftheSellertoretainthedocumentsreferredtoinArticle12.2.1untilpayment,riskandtitletotheCargoshallpassfromtheSellertotheBuyerastheCargopassesthefirstpermanentmanifoldflangeoftheBuyer’sVesselatthePortofLoading.

2.2 Quantity and quality

2.2.1 DeterminationofthequantityandthequalityoftheCargoshallbecarriedoutbymeasurement,sampling andtestinginaccordancewiththestandardpracticeinuseatthePortofLoadingatthetimeofloading.

2.2.2 ProvidedthatArticle2.2.1iscompliedwith,thequantityandqualityoftheCargoasdeterminedand recordedinthecertificatesofquantityandquality(orsuchotherequivalentdocumentsasmaybeissued atthePortofLoadinginaccordancewithsuchstandardpractice)fortheCargoshall,saveforfraudor manifesterror,befinalandbindingonbothPartiesforinvoicingpurposes,butwithoutprejudicetothe rightsofeitherPartytomakeanyclaimpursuanttoArticle14.

2.2.3 WheretheSpecialConditionsprovidefortheappointmentofanIndependentInspector,theSellershall appointanIndependentInspectoracceptabletobothPartiessubjecttoanynecessaryprioragreement oftheTerminalhavingbeenobtained.ThecostoftheIndependentInspector’sservicesshallbeshared equallybetweentheParties.

2.2.4 WherethePartiesarenotabletoagreeonanIndependentInspector,eitherPartymaynominatean IndependentInspectoratitsownexpenseatthePortofLoading,subjecttoanynecessaryprior agreementoftheTerminalhavingbeenobtained.

2.3 Vessel requirements

2.3.1 Local requirements

TheVesselshallcomplywithallapplicablegovernmental,local,portauthority,laws,and/orregulationsandanyotherrequirementsofwhatsoevernatureinforceatthePortofLoading,includingbutnotlimitedtotheTerminalregulationsandrequirements.Inaddition,theVesselshallcomplywiththisArticle2.3andSchedule3.

2.3.2 General requirements

2.3.2.1 TheVesselshallcomplywithallinternationallaws,regulationsand/orrequirementsincluding,but notlimitedto,InternationalConventionfortheSafetyofLifeatSea1974,asamended,MARPOL,all otherInternationalMaritimeOrganisation(“IMO”)rulesandregulations,andanyUnitedStatesCoast Guardregulations,asapplicable.

2.3.2.2 WithoutprejudicetoArticle2.3.2.1,theVesselshall: (a) beownedbyordemisecharteredtoamemberoftheInternationalTankerOwnersPollution FederationLtd.(ITOPF),unlesstheVesselisanLPGtanker; (b) whennecessary,carryonboardcertificate(s)requiredinaccordancewiththeInternational ConventiononCivilLiabilityforOilPollutionDamage(CLC)1969,asamended,theInternational ConventiononCivilLiabilityforBunkerOilPollutionDamage2001andaCertificateOfFinancial Responsibility; (c) havethemaximumprotectionandindemnityinsurancecoverageforpollutionnotlessinscope thanavailableatanytimeundertherulesoftheInternationalGroupofP&IClubs;

2011 version 1.0 12

DEL

IVER

Y T

ERM

S -

FOB

(d) haveonboardavalidSafetyManagementCertificate,issuedpursuanttotheInternationalSafety Management(ISM)Code2002; (e) bemanned,operatedandmaintainedtocomplywiththestandardsstatedinthemostrecent editionoftheInternationalSafetyGuideforOilTankersandTerminals(ISGOTT)asmaybe amendedfromtimetotime,theappropriateIMOrecommendations,theOCIMFGuidelinesfor theControlofDrugsandAlcoholOnboardShip(1995),eachasamendedfromtimetotime;and (f) onlydischargedirtyballast,bilges,slopsorothersubstancesintowaterinaccordancewith MARPOL.

2.3.3 Loading capacity requirements

ThereceivingcapacityoftheVesselshallallowtheSellertoloadtheCargowithintheLaytimeallowedinaccordancewithArticle2.5.2.

2.3.4 Consequences of breach

WheretheVesseldoesnotmeettherequirementsstatedinthisArticle2.3orwhereanyotherreasonablegroundsexist,theTerminaland/ortheSellerand/ortheSeller’ssuppliermayrefusetoberth,loadorcontinuetoload,theVessel.AnyfailuretomeettherequirementsofStatoilVettingshallalwaysbeconsideredasareasonablegroundforsuchrefusal.

2.4 Nomination of the Vessel

2.4.1 Notice of nomination

TheBuyershallgiveaNoticetotheSelleroftheVesselwhichistoloadtheCargo(“thenomination”).Thenominationshallspecify:(a) theProductandapproximatequantitytobeloaded;

(b) thedetailsofanyothercargoalreadyloadedortobeloadedontheVesselbeforeloadingtheCargofrom theSeller;

(c) thenameandcapacityoftheVesselandsuchotherinformationasmayberequiredbythePortof Loadingand/orStatoilVetting;and

(d) ifrequiredbytheSeller,theETAoftheVesselatthePortofLoadinganddetailsoftheVessel’scurrent positionanditinerary.

2.4.2 Documentary instructions

NolaterthanfiveWorkingDayspriortothefirstdayoftheDeliveryDateRange,theBuyershallgiveaNoticetotheSellerwithfullwritteninstructionsregardingtheparticularsandthedestinationofthebillsofladingsandsuchothercustomaryTerminaldocumentationwhichmayberequired.TheBuyershallbeliableforallcostsresultingfromanydelaysinloadingtheCargoduetofailurebytheBuyertosupplysuchfullwritteninstructionsinatimelymannerandanysuchdelaysshallnotcountasusedLaytimeor,wheretheVesselisondemurrage,astimeondemurrage.

2.4.3 Timing

2.4.3.1 ThenominationspecifiedinArticle2.4.1.shallnotbeeffectiveunlessitisreceivedbytheSellernolater thansevenWorkingDayspriortothefirstdayoftheDeliveryDateRange.

2.4.3.2 WherethenominationspecifiedinArticle2.4.1isreceivedbytheSellerlessthansevenWorkingDays priortothefirstDayoftheDeliveryDateRangeandisacceptedbytheSeller,theLaytimeallowedtothe SellershallnotcommencebeforetheVesselhasactuallycommencedloading.

2.4.3.3 WheretheAgreementisenteredintosevenWorkingDaysorlesspriortothefirstdayoftheDeliveryDate RangethenthenominationspecifiedinArticle2.4.1mustbereceivedbytheSellernolessthanthree DayspriortothefirstdayoftheDeliveryDateRange.

2011 version 1.0 13

DEL

IVER

Y T

ERM

S -

FOB

2.4.3.4 WheretheDealExecutionDatedoesnotallowthedatesfornotificationspecifiedinArticle2.4.2and Article2.4.3tobecompliedwith,thenbothPartiesshallmakebesteffortstocompletewithintwoDaysof thedateoftheAgreementanyoutstandingtimelimitedrequirements,notifications,nominationsand procedures.

2.4.4 Substitution

TheBuyermayrequestasubstitutionoftheVessel,subjecttotheSeller’sacceptanceandsuchacceptanceshallnotbeunreasonablywithheld.TheapplicableDeliveryDateRangeagreedfortheDeliveryoftheCargoshallnotbesubjecttochangeoralterationasaconsequenceofanysubstitutionoftheVessel.

2.4.5 Rejection

TheSellerhastherighttorejectanynominationmadebytheBuyerortorefusetoaccepttheVesselnominatedforloadingwheretheVesseldoesnotcomplywithArticle2.3and/orwhereithasbeeninvolvedinanyincidentaftertheSeller’sacceptanceandpriortotheDeliverythatcould,inthereasonableopinionoftheSeller,beconstruedtohaveanegativeimpactonitsperformanceand/orwheremorerecentinformationregardingtheVesselbecomesavailabletotheSellerthatwouldmakeitreasonablefortheSellertoretractitspreviousacceptance.

2.4.6 Changes in procedures

TheproceduresdescribedinArticle2.4shallbesubjecttomodificationbywrittenNoticefromtheSellertotheBuyer,totakeaccountofchangesinthenominationand/orotherproceduresapplicablefromtimetotimeatthePortofLoading.

2.4.7 Liability

TheSellershallnotbeliablefortheconsequencesofrejectionordelay(includingbutnotlimitedtodemurrage)oftheVesselorotherrestrictionsufferedinrespectoftheVesselbyvirtueoftheapplicationofanyregulationsorotherrequirementsofArticle2.3andArticle2.4,andtheBuyershallbeliableforanycostsordamagesincurredbytheSellerarisingoutofanysuchrejectionof,delaytoorrestrictionoftheVessel.

2.5 Loading

2.5.1 Requirements of the Port of Loading and arrival of the Vessel

2.5.1.1 TheSellershallexerciseduediligencetoprovideasafeBerthfortheVesselwhichtheVesselcan proceedto,lieat,loadtheCargoanddepartfrom,alwayssafelyafloat.

2.5.1.2 TheBerthprovidedfortheVesselshallalwaysbefreeofwharfagefeesfornormalcargotransfer.All duties,fees,taxes,quayduesandothercharges,whethersimilartotheforegoingornotandwithout limitation,dueinrespectoftheVesselaswellaspilotage,mooringandtowageexpensesincurredatthe PortofLoadingshallbebornebytheBuyer.

2.5.1.3 Wherethedimensionsand/oranyothercharacteristicsoftheVesseldonotcomplywiththeinformation providedwhentheVesselwasnominatedandaccepted,theSellershallnotbeliableforanyresulting lossordamageandtheSellershallnotbeobligedtocommenceorcontinueloading.

2.5.1.4 AnylossofordamagetotheCargoduringloading,wherecausedbytheVesseloritsofficersorcrew, shallbefortheaccountoftheBuyer.

2.5.1.5 TheBuyershallindemnifytheSellerforanyclaimmadeagainsttheSellerinrespectofdamagetoany facilitiesattheTerminalcausedbytheVessel.

2.5.1.6 TheBuyershallarrangeforitsVesseltoreporttotheTerminalandtheSellereachof72,48and24hours priortoitsarrivalandasotherwiseinaccordancewiththestandardreportingprocedureapplicable fromtimetotimeattheTerminalinquestion.WheretheVesselfails,foranyreason,togiveatleast24 hourspriorNoticeofarrivalattheTerminal,thetimeallowedtotheSellerforloadingpursuanttoArticle 2.5.2shallbeextendedbyaperiodequaltothedelayingivingsuch24hoursNotice,butinanycasenot exceedinganadditional24hours.

2011 version 1.0 14

DEL

IVER

Y T

ERM

S -

FOB

2.5.1.7 TheBuyershallensurethatbynolaterthan23.59(localtime)onthelastdayoftheDeliveryDateRange: (a) theVesselnominatedbytheBuyershallarriveattheTerminal(ortheusualwaitingplace); (b) theVesselshallhavecompletedallformalitiesandinallrespectsbereadytocommenceloading theCargo;and (c) avalidNORhasbeentendered.

2.5.1.8 ProvidedthattheVesselarrivesattheTerminal(ortheusualwaitingplace),andtendersavalidNOR beforeorwithintheDeliveryDateRangepursuanttoArticle2.5.1.7,theSeller,havingregardtothe requirementsandproceduresoftheTerminalandthetimewhentheVesselhascompliedwiththe provisionsofArticle2.5.2,shallcommenceloadingandtheBuyershallbeobligedtotakedeliveryofthe Cargoassoonasreasonablypracticable,evenwherethismeansthatloadingiseffectedorcompleted outsidetheDeliveryDateRangeoroutsideanyotherperiodspecifiedintheSpecialConditions.

2.5.2 Laytime

2.5.2.1 TheLaytimeallowedtotheSeller,forloadingtheCargoshallbeasagreedbetweenthePartiesinthe SpecialConditions.

2.5.2.2 WherenoLaytimeisagreedintheSpecialConditions,theLaytimeallowedtotheSellershallbeeither: (a) onehalfofthetotallaytimeallowedtotheBuyerundertherelevantcharterparty;or (b) wherethecharterpartymakesnostipulationsastothelaytimeallowed,theSellershallbe entitledtosuchLaytimeaswouldbecustomaryfortheVessel,givenitssize,atthePortof Loading. NotwithstandingArticle2.5.2.2(a)andArticle2.5.2.2(b),fordeliveriesofcrudeoilandcondensate,the LaytimeallowedforloadingtheCargoshallbeaminimumof36hours.

2.5.2.3 UntiltheVesselisallfastattheBerth,itisaconditionprecedentfortheLaytimetocommencethatthe NORistenderedbytheVessel’smasteroritsagenttotheTerminal,withacopytotheSeller,uponarrival oftheVesselatthecustomaryanchorageortheplacewheretheVesselisorderedtowaitforloading, whicheverisapplicable.

2.5.2.4 TheLaytimeshallbeSHINC(Sundaysandholidaysincluded)unlessloadingontheDayinquestionis prohibitedand/orrestrictedbythelawsorregulationsinforceatthePortofLoading.

2.5.2.5 WheretheVesseltenderstheNORinaccordancewithArticle2.5.2.3withintheDeliveryDateRange, theLaytimeshallcommenceeithersixhoursaftertheNORistenderedorthetimewhentheVesselis securelymooredattheBerth,whicheveristheearlier.

2.5.2.6 WheretheVesseltenderstheNORpriortotheDeliveryDateRange,theLaytimeshallcommenceat 06.00onthefirstDayofthesaiddaterange,orontheCommencementofLoadingwhicheveristhe earlier.However,unlessotherwiseagreedbythePartiesinwriting,theSellerisnotobligedtocommence loadingbefore06.00.

2.5.2.7 WheretheVesseltenderstheNORaftertheDeliveryDateRangeandprovidedthattheSellerhas electedtoDelivertheCargototheBuyer,theLaytimeshallcommencewhentheVesselissecurely mooredattheBerth.TheSellershallinsucheventmakereasonableendeavourstoberththeVesselas soonaspossibleafterarrival,subjecttotheSeller’sand/ortheTerminal’spre-existingcommitments.

2.5.2.8 TimespentorlostbytheVesselshallnotcountasLaytimeorasdemurrage(wheretheVesselisalready ondemurrage),ifarisingoutoforinconnectionwithanyofthefollowingsituations: (a) oninwardpassage(aswellasmovingfromanchorage)includingawaitingpilot,tugs,daylightor tide,freepratique,untiltheVesselissecurelymooredattheBerth;

2011 version 1.0 15

DEL

IVER

Y T

ERM

S -

FOB

(b) adverseweather/orseaconditionsincludingfogand/orice; (c) handlingorshiftingballast,bilges,slopsorbunkering,cleaningandinspectionoftheVessel’s cargotanksunlesscarriedoutconcurrentlywithloadingtheCargosoldundertheAgreementand withoutanyimpactontheloading; (d) duetofaultorfailureorrefusalforanycausewhatsoeverattributabletotheVesselortheBuyer ortheShip-ownerortheVesseloperatororitsmaster,officers,creworagent(s); (e) anyonboardstrike,lockout,stoppageorrestraintoflabour; (f) duetobreakdown,inefficiency(includingtemperatureinthetanks)oftheVessel; (g) duetotheinabilityoftheVesseltocomplywiththeminimumloadingordeballastingrateaslaid downbytheTerminalregulationsandtheinabilityoftheVesseltoloadtheCargowithinthe Laytimeallowed;or (h) duetotheTerminalortheportauthorityprohibitingorrestrictingloadingduetoweather conditions.

2.5.2.9 TheprovisionsofArticle15shallnotapplytoArticles2.5.2andArticle2.5.3.

2.5.2.10TheLaytimeshallceaseupontheDisconnectionofHoses.

2.5.3 Demurrage

2.5.3.1 WheretheLaytimeallowedisexceeded,theSellershall,subjecttotheprovisionsofArticle2.5.2and Article2.5.3,haveanindependentobligationtopaydemurragetotheBuyerinrespectoftheexcesstime.

2.5.3.2 Thedemurragetobepaidshallbecalculatedbymultiplyingtheexcesstimebythedemurragerate agreedbythePartiesintheSpecialConditionsperDay(andprorataforpartofaDay).Wherethe SpecialConditionsstatethatthedemurragerateis“aspercharterparty”,orwordstothateffect,and where,intheSeller’ssoleopinion,suchcharterpartyrateishigherthanthemarketdemurragerate,then theapplicabledemurragerateshallbedeterminedinaccordancewithArticle2.5.3.3.

2.5.3.3 WherenodemurragerateisagreedintheSpecialConditions,thedemurragerateshallbeasfollows: (a) wheretheProductiscrudeoilorcondensate,thedemurragerateshallbebasedontheAverage FreightAssessmentRate(AFRA)ofWorldscaleappropriatetothesizeoftheVesselas publishedbytheLondonTankerBrokersPanelandcurrentonthedateoftheCompletionof Loading;or (b) wheretheProductisLPG,thedemurragerateshallbeasperthe“BraefootBayAssessment” rateforsizeoftheVesselonthedateoftheCompletionofLoading.

2.5.3.4 WherenodemurrageratecanbeestablishedunderArticle2.5.3.2orArticle2.5.3.3,thedemurragerate shallbeasperthemarketratefortherelevant/applicablesizeofvesselonthedateoftheCompletionof Loadingasshallbeassessedbyamutuallyagreedindependentandreputablebroker.WheretheParties donotagreeonthebrokertobeappointed,theneachPartyshallappointareputableindependent brokerandthetwosoappointedwillappointathird.Theassessmentthatisfurthestawayfromthe medianwillbediscountedandthedemurrageratewillbetheaverageofthetworemainingassessments.

2.5.3.5 TheSeller’sobligationtopaydemurrageshallbeabsoluteandshallnotbeexcusedbyoperationof Article15.However,wheredemurrageisincurreddirectlyasaresultoffire,explosion,strike,lockout, stoppageorrestraintoflabourorbythebreakdownofmachinery,plantorequipmentatoraroundthe PortofLoading(“anincident”)therateofdemurrageshallbereducedbyone-halfperrunninghourorpro rataforpartofanhourforthedemurragethusincurred.Thisreductionshallbeapplicableevenifthe Vesselwasalreadyondemurragewhentheincidentoccurred.

2011 version 1.0 16

DEL

IVER

Y T

ERM

S -

FOB

2.5.3.6 InnoeventshalltheSellerbeliableforademurrageclaimwheresuchclaim,togetherwithallsupporting documentsisnotreceivedinwritingbytheSellerandwithin60Daysfromthebillofladingdate.Forthe purposeofthisArticle2.5.3.6,thebillofladingdateshallcountasDayone.WheretheBuyerfailsto presentaclaim,togetherwithsuchdocumentation,withintheaforesaidlimit,thenanyliabilityoftheSeller fordemurrageshallbeextinguished.

2.5.3.7 Wherethereisanydelayinconnectionwiththescheduling,berthingorloadingoftheVesselorotherwise foranyreasonwhatsoever(includingnegligenceontheSeller’spart),therightsoftheBuyeragainstthe Sellerinrespectofsuchdelayshallbelimitedtoaclaimfordemurrage,inaccordancewiththeprovisions ofthisArticle2.5.3.

2.5.3.8 WheretheVesselisloadedatthePortofLoadingbytheSellerandbyoneormoreothersupplier(s),the Seller’sliabilityfordemurrageshallbelimitedtothatattributabletotheSeller’sproportionofthetotal cargoloadedontheVesselatthePortofLoading.However,wheretheothersupplier(s)is/arethecause ofthedemurrage,theSellershallnotbeliableforanydemurrageincurred.

2.5.3.9 Furthermore,theBuyershallonlybeentitledtosuchamountofdemurrageasfollows: (a) wheretheSeller’ssupplieroperatestheTerminal,suchdemurrageastheSellerisableto recoveranddoesrecoverundertheTerminal’susualtermsforthesupplyoftheProduct;

(b) wheretheSellerhascontractedwithasupplierthatisnottheoperatoroftheTerminal,the lesserofsuchdemurrageastheSellerisabletorecoveranddoesrecoverfromthatsupplierand theamountofdemurragethatwouldhavebeenrecoveredundertheTerminal’susualtermsfor thesupplyoftheProduct;or

(c) wheretheTerminalhasnolaytimeanddemurragetermsthatapplytothesupplyoftheProduct thentheamountofdemurragetheSellershallpaytotheBuyershallbecalculatedpursuantto Article2.5.2andArticle2.5.3,irrespectiveofanyrecoverytheSellermaymakefromitssupplier. WhereArticle2.5.3.9(a)orArticle2.5.3.9(b)isapplicable,theSellershallmakereasonable effortstorecoverfromitssupplieranydemurrageforwhichtheBuyerhassubmittedaclaimin accordancewiththeprovisionsofthisArticle.

InallcasestheBuyermustcomplywiththetimelimitasstatedinArticle2.5.3.6.

2.5.4 Vacating the Berth

2.5.4.1 TheVesselshallvacatetheBerthwithoutdelayupontheCompletionofLoadingandfollowingthe DisconnectionofHosesand,whereapplicable,theTerminal’shandoverofthedocumentstotheVessel (unlesssuchdocumentscanbedeliveredtotheVesselatasuitableanchorageor“EarlyDeparture Procedure”isapplied).

2.5.4.2 WheretheVesselfailstopromptlyvacatetheBerthinaccordancewithArticle2.5.4.1andanylossor damageisincurredbytheSellerortheTerminalasaconsequencethereof,suchlossshallbeforthe Buyer’saccount,unlesssuchfailureisduetoareasonattributabletotheSeller,itssupplierorthe Terminal.

2.5.5 Excess Berth utilisation

TheBuyershallalwaysholdtheSellerharmlessinrespectofanyexcessBerthutilisationchargeinaccordancewiththeTerminalregulationsorcontractuallyagreedorotherwiseestablishedscaleforexcessBerthutilisationimposedontheSellerinrespectoftheBuyer’sVessel.

2011 version 1.0 17

DEL

IVER

Y T

ERM

S -

FOB

2.6 Lightering and Shifting

2.6.1 TheSellermayrequiretheBuyertoshifttheVesselatthePortofLoadingfromoneBerthoranchorage toanotherBerthoranchorage.Insuchcase,theSellershallpayanyadditionalexpensesdirectlyincurred inconnectionwithshiftingtheVessel,andtimeconsumedonaccountofsuchshiftingshallcountas LaytimewheresuchshiftingisrequiredbytheSeller.

2.6.2 TheSellershallhavetheoptiontoDelivertheCargototheVesselfromlighters,floatingstoragefacilityor othervessel,subjectalwaystotheBuyer’srightsunderArticle2.5.1.WheretheSellerexercisessuch option,thenthecostofsuchlightering,togetherwithanyotheradditionalexpensesdirectlyincurredby theVesselinrespectthereof,shallbefortheSeller’saccount.TheSellershallbeobligedtonotifythe BuyeroftheplaceoflighteringupontheVessel’sarrivalandthisplaceshallbedeemedtobethe “Berth”forthepurposesofArticle2.5andArticle2.6.Shouldanylighteringbecarriedout,theoperation shallbeconductedinaccordancewiththemostrecenteditionoftheShiptoShipTransferGuideas publishedbyOCIMFandasmaybeamendedfromtimetotime.

2.6.3 WheretheVesselisrequiredtovacateorshiftberthforanyreasonattributabletotheVessel,thenany andallloss,damage,chargeorpenaltyincurredbytheSellershallbefortheaccountoftheBuyer andalltimeconsumedasaresultofsuchvacatingorshiftingBerthshallnotcountasusedLaytimeor timeondemurrage.

2011 version 1.0 18

DEL

IVER

Y T

ERM

S -

CIF

, CFR

, CIF

/CFR

OU

TT

UR

N

ARTICLE 3. COST, INSURANCE AND FREIGHT (CIF), COST AND FREIGHT (CFR), CIF OUTTURN AND CFR OUTTURN

3.1 Risk and titleNotwithstandinganyrightoftheSellertoretainthedocumentsreferredtoinArticle12.2.1untilpayment,riskandtitletotheCargoshallpassfromtheSellertotheBuyerastheCargopassesthefirstpermanentmanifoldflangeoftheSeller’sVesselatthePortofLoading.


3.2.1 DeterminationofthequantityandthequalityoftheCargoshallbecarriedoutbymeasurement,sampling andtestinginaccordancewiththestandardpracticeinuseatthePortofLoadingatthetimeofloading. ThisprincipleshallbeapplicablebothwheretheCargohasalreadybeenloadedontotheVesselatthe timeoftheAgreement/nominationand/orwheretheCargoisstilltobeloaded.

3.2.2 ProvidedthatArticle3.2.1iscompliedwith,thequantityandqualityoftheCargoasdeterminedand recordedinthecertificatesofquantityandquality(orsuchotherequivalentdocumentsasmaybeissued atthePortofLoadinginaccordancewithsuchstandardpractice)fortheCargoshall,saveforfraudor manifesterror,befinalandbindingonbothPartiesforinvoicingpurposes,butwithoutprejudicetothe rightsofeitherPartytomakeanyclaimpursuanttoArticle14.

3.2.3 WheretheSpecialConditionsprovidefortheappointmentofanIndependentInspector,theSellershall appointanIndependentInspectoracceptabletobothPartiessubjecttoanynecessaryprioragreementof theTerminalatthePortofLoadinghavingbeenobtained.ThecostoftheIndependentInspector’s servicesshallbesharedequallybetweentheParties.

3.2.4 WherethePartiesarenotabletoagreeonanIndependentInspector,eitherPartymaynominatean IndependentInspectoratitsownexpenseatthePortofLoading,subjecttoanynecessaryprior agreementoftheTerminalatthePortofLoadinghavingbeenobtained.

3.2.5 WheretheDeliveryismadeasapartcargolotthatispartofanunsegregatedbulkcargofordeliveryto theBuyerandathirdparty,thequantitydeterminedinaccordancewiththeforegoingshallbeadjusted sothat,followingtheCompletionofDischargeoftherelevantpartcargolots,includingtheCargo, theBuyerandsuchthirdpartyshalleachbeallocatedapercentageofthetotalloadedquantityequalto thatpercentageofthetotaloutturnquantity(determinedateachdischargeportinaccordancewiththe provisionsofArticle4.2)thatwasdischargedatitsdischargeport.ThecostsoftheIndependentInspector shallbesharedequallybetweenthepartiesfortheirrespectivedischargeportsandtheIndependent Inspector’sreportshallbemadeavailabletoallparties.

3.2.6 ForCIFOutturnandCFROutturndeliveries,thefollowingtermsshallapply: (a) ForthepurposeofdeterminingthecomplianceoftheProductwiththequantityandquality provisionsoftheSpecialConditions,thequalityshallbedeterminedatthePortofLoading,in accordancewithArticles3.2.1toArticle3.2.5,andthequantitymeasurementshallbecarriedout atthePortofDestination,inaccordancewithArticle4.2.; (b) IntheeventofatotallossoftheCargoorwherethedischargequantitydeterminedbythe IndependentInspectorinaccordancewithArticle4.2.4islessthan99.5%oftheloadedquantity determinedinaccordancewithArticle3.2.2,thenthequantityinvoicedbytheSellershallbe 99.5%ofthequantityspecifiedonthecertificate(s)ofquantity(ortheequivalentdocument) issuedatthePortofLoading.

2011 version 1.0 19

DEL

IVER

Y T

ERM

S -

CIF

, CFR

, CIF

/CFR

OU

TT

UR

N



TheVesselshallcomplywithallapplicablegovernmental,local,portauthoritylaws,Statoilrequirementsand/orregulationsinforceatthePortofDestination,includingbutnotlimitedto,Terminalregulationsandrequirements.Inaddition,theVesselshallcomplywiththisArticle3.3andSchedule4.

3.3.2 General requirements for all Vessels

3.3.2.1 TheVesselshallcomplywithallinternationallaws,regulationsand/orrequirementsincluding,butnot limitedto,theInternationalConventionfortheSafetyofLifeatSea,1974,asamended,MARPOL,all otherInternationalMaritimeOrganisation(“IMO”)rulesandregulations,andanyUnitedStatesCoast Guardregulationsasapplicable.

3.3.2.2 WithoutprejudicetoArticle3.3.2.1,theVesselshall: (a) beownedbyordemisecharteredtoamemberoftheInternationalTankerOwnersPollution FederationLtd.(ITOPF),unlesstheVesselisaLPGtanker;

(b) whennecessary,carryonboardcertificate(s)requiredinaccordancewiththeInternational ConventiononCivilLiabilityforOilPollutionDamage(CLC)1969,asamended,theInternational ConventiononCivilLiabilityforBunkerOilPollutionDamage2001andaCertificateOfFinancial Responsibility;

(c) havethemaximumprotectionandindemnityinsurancecoverageforpollutionnotlessinscope andamountthanavailableatanytimeundertherulesoftheInternationalGroupofP&IClubs; (d) haveonboardavalidSafetyManagementCertificate,issuedpursuanttotheInternationalSafety Management(ISM)Code2002; (e) bemanned,operatedandmaintainedtocomplywiththestandardsstatedinthemostrecent editionoftheInternationalSafetyGuideforOilTankersandTerminals(ISGOTT),theappropriate IMOrecommendationsandtheOCIMFGuidelinesfortheControlofDrugsandAlcoholOnboard Ship(1995),eachasamendedfromtimetotime;and (f) onlydischargedirtyballast,bilges,slopsorothersubstancesintowaterinaccordancewith MARPOL.


WheretheVesseldoesnotmeettherequirementsstatedinArticle3.3,theTerminaland/ortheBuyermayrefusetoberth,dischargeorcontinuetodischargetheVessel.

3.4 Nomination of the Vessel and the Port of Destination

3.4.1 Notice of nomination of the VesselTheSellershallgiveaNoticetotheBuyeroftheVesselwhichistoload(orhasloaded)theCargo(“thenomina-tion”).Thenominationshallspecify:

(a) thegradeand/orqualityandtheapproximatequantityoftheCargotobeloadedfortheaccountofthe Buyer(orthebillofladingquantitywhereknown);

(b) theDeliveryDateRangeatthePortofLoading(orbillofladingdatewhereknown);

(c) thenameoftheVesselandsuchotherinformationasmayreasonablyberequiredbythePortof Destination;and(d) thedescriptionofanyothercargoonboard.

2011 version 1.0 20

DEL

IVER

Y T

ERM

S -

CIF

, CFR

, CIF

/CFR

OU

TT

UR

N

3.4.2 Acceptance/rejection of nomination

3.4.2.1 ThenominatedVesselshallbesubjecttotheBuyer’sacceptance,whichshallnotbeunreasonably withheld.TheBuyershallprovidetheSellerwithaNoticeofacceptanceorrejectionofthenominated VesselwithinoneWorkingDayoftheBuyer’sreceiptofthenomination,unlessotherwisestatedinthe SpecialConditions.

3.4.2.2 AnyNoticeofrejectionshallstatethespecificreason(s)fortheBuyer’srejectionsothattheSellermay takereasonablecorrectiveaction(s),includingmakingafurthernominationwithoutprejudiceasto whethertheBuyer’srejectionisreasonableornot.

3.4.3 Nomination of the Port of Destination

3.4.3.1 UnlessotherwisestatedintheSpecialConditions,theBuyershallnotifytheSellerwithinoneWorking DayoftheBuyer’sreceiptoftheSeller’snominationstatedinArticle3.4.1,of: (a) thePort(s)ofDestination,unlessalreadyspecifiedintheSpecialConditions; (b) allinstructionsregardingcustomarydocumentationwhichmayberequiredatthePortof Destination;and (c) theidentityoftheTerminal(s)atthePortofDestination,withinstructionstoenabletheVesselto prepareandsubmitnecessaryinformationtothecustomsorborderauthorities.

3.4.3.2 AnydelaysindischargingtheCargocausedbytheBuyer’sfailuretoprovideanynecessaryinformation atthePortofDestinationwillbefortheBuyer’saccount.TheBuyershallindemnifytheSellerforallcosts, lossesanddamages,including,butnotlimitedto,demurrageand/ordetentionincurredbytheSellerasa resultthereof.

3.4.3.3 TheBuyerhastheoptiontohavetheCargodischargedataplaceotherthanthatagreedintheSpecial Conditions,subjectto: (a) theterms,conditionsandexceptionsoftherelevantcharterparty;and (b) theSeller’spriorapproval alwaysprovidedthattheBuyeragreestopaysuchcompensationastheSellerrequiresforthe alternativePortofDestinationandindemnifiestheSellerandholdsitharmlessinrespectofany liability,loss,damageorexpenseofwhatsoevernaturewhichtheSellermayincur(directlyor indirectly)inrelationtotheShip-ownerinrespectoftheDeliveryoftheCargoataportotherthan thatstatedinthebillsoflading.

3.4.4 Substitution of the Vessel

TheSellermaysubstitutetheVesselwithanotherofsimilarsizeandcharacteristics,providedthattheSellerfulfilsitsobligationsunderArticle3.4.1.

3.5 Discharge

3.5.1 Requirements of the Port of Destination

TheBuyershallprovideasafeportandBerthfortheVesselwhichtheVesselcan,whenfullyladen,proceedto,lieat,dischargetheCargoatanddepartfrom,alwayssafelyafloatandalwaysfreefrompossibleairdraft(s)orotherphysicalorlegalrestrictions.

3.5.2 Port costs

AllduesandotherchargesontheSeller’sVesselatthePortofDestination,otherthanthosedefinedby WorldscaleasbeingfortheShip-owner’saccount,shallbebornebytheBuyer.

2011 version 1.0 21

DEL

IVER

Y T

ERM

S -

CIF

, CFR

, CIF

/CFR

OU

TT

UR

N

3.5.3 Arrival at the Port of Destination

3.5.3.1 WherethePartieshaveagreedacertaindaterangeforthedischargeoftheCargo,theSeller’s obligationswithregardtothearrivaloftheVesselatthePortofDestinationwillbefulfilledprovidedit couldhavebeenreasonablyanticipatedupontheCompletionofLoadingthattheVesselwouldbeable toreachthePortofDestinationandtendertheNORnolaterthan23.59(localtime)onthelastdayofthe agreeddaterange.TheSellershallnotassumeanyresponsibilityorguaranteeforthedeliveryofthe ProductatthePortofDestinationwithintheagreeddaterange.

3.5.3.2 WheretheDeliveryoftheCargoisbeingmadeasapartcargolot,theSellermaytendertheNORafter expiryoftheagreeddaterangeaslongastheVesselarrivesatthePortofDestinationwithintheagreed daterange.

3.5.4 Laytime

3.5.4.1 TheLaytimeallowedtotheBuyerfordischargingtheCargo,SHINC(Sundaysandholidaysincluded), shallbeasagreedbetweenthePartiesintheSpecialConditions.

3.5.4.2 WherenoLaytimeisagreedintheSpecialConditions,theLaytimeallowedtotheBuyershallbeeither: (a) onehalfofthelaytimeallowedtotheSellerunderthecharterparty;or

(b) wherethecharterpartymakesnostipulationsastotheamountoflaytimeallowed,theBuyer shallbeentitledtoonehalfofsuchlaytimeaswouldbecustomaryinavoyagecharterpartyfor suchavesselonthistrade.

NotwithstandingArticle3.5.4.2(a)andArticle3.5.4.2(b),fordeliveriesofcrudeoilorcondensate,the LaytimeallowedfordischargingtheCargoshallbeaminimumof36hours.

3.5.4.3 WheretheDeliveryoftheCargoisbeingmadeasapartcargolot,thentheLaytimefordischargingthe CargoshallbeproratedtothequantityoftheCargocomparedwiththefullcargocapacityoftheVessel.

3.5.4.4 TheLaytimeshallcommence,BerthornoBerth,sixhoursaftertheVessel’smasteroritsagenthas tenderedtheNORtotheTerminalatthePortofDestinationuponarrivaloftheVesselatthecustomary anchorageortheplacewheretheVesselisorderedtoawaitfordischarging(WWWW),whicheveris applicable,oratthetimewhentheVesselissecurelymooredattheBerth,whicheverisearlier.

3.5.4.5 WherethePartieshaveagreedacertaindaterangeforthedischargeoftheCargo,andwheretheVessel tendersitsNORpriortothefirstdayoftheagreeddaterange,theLaytimeshallcommencesixhours aftertheNORbutnotpriorto00.00onthefirstdayoftheagreeddaterange,unlesstheBuyerallowsthe Vesseltoberthearlier,inwhichcasetheLaytimecommenceswhentheVesselissecurelymoored.

3.5.4.6 TimespentbytheVesseloninwardpassageshallnotcountasLaytimeortimeondemurrage.

3.5.4.7 WheretheCargoisarefinedpetroleumproduct(excludingLPG),theVessel,shallbeabletomaintain anaverageof100PSIattheVessel’smanifoldduringdischarge(savewhenstripping)providedthatthere arenointerruption(s)andalwaysprovidedshorefacilitiespermit.

3.5.4.8 WheretheCargoiscrudeoil,theVesselshallbeabletoeithermaintainanaverageof100PSIat theVessel’smanifoldordischargetheCargowithin32hours(eighthourslesswherecrudeoilwashingis notconducted)andalwaysprovidedthatshorefacilitiespermit.

3.5.4.9 WheretheCargoiscondensate,theVesselshallbeabletoeithermaintainanaverageof100PSIatthe Vessel’smanifoldordischargetheCargowithin24hoursandalwaysprovidedthatshorefacilitiespermit.

3.5.4.10WheretheCargoisLPG,theVesselshallbeabletodischargetheCargoasagreedintheSpecial Conditions,butintheabsenceofsuchagreementattherateconsistentwiththeVessel’sactualcapability andalwaysprovidedthatshorefacilitiesandseawatertemperaturepermit.

2011 version 1.0 22

DEL

IVER

Y T

ERM

S -

CIF

, CFR

, CIF

/CFR

OU

TT

UR

N

3.5.4.11TimelostduringdischargeasaresultoftheVesselbeingunabletoperformasstatedinArticles3.5.4.7to Article3.5.4.10shallnotcountasLaytimeortimeondemurrage.

3.5.4.12TheLaytimeshallceaseatthetimeoftheDisconnectionofHoses.However,wheretheVessel’s departurefromthePortofDestinationisdelayedsolelyfortheBuyer’spurposesformorethantwohours aftertheDisconnectionofHoses,theLaytimeortimeondemurrageshallrecommenceuntiltheVesselis allowedtoleavethePortofDestination.

3.5.4.13WheretheVesselisorderedtoshiftBerthortogotoanchorageotherthanduetoareasonattributable totheSellerortheVessel,thenthetimetakentomoveshallcountasLaytimeortimeondemurrage,as thecasemaybe,andanyadditionalcostsshallbefortheBuyer’saccount.

3.5.4.14TheprovisionsofArticle15shallnotapplytoArticle3.5.4andArticle3.5.5.

3.5.5 Demurrage

3.5.5.1 WheretheLaytimeallowedisexceeded,theBuyershall,subjecttotheprovisionsofArticle3.5.4,have anindependentobligationtopaydemurragetotheSellerinrespectoftheexcesstime.

3.5.5.2 Thedemurragetobepaidshallbecalculatedbymultiplyingtheexcesstimebythedemurragerate agreedbetweenthePartiesintheSpecialConditionsperDay(andprorataforpartofaDay).

3.5.5.3 WherenodemurragerateisagreedintheSpecialConditions,thedemurragerateshallbedeterminedas follows: (a) wheretheProductiscrudeoilorcondensate,thedemurragerateshallbebasedontheAverage FreightAssessmentRate(AFRA)ofWorldscaleapplicabletothesizeoftheVesselaspublished bytheLondonTankerBrokersPanelandcurrentonthedateoftheCompletionofLoading;or (b) wheretheProductisLPG,thedemurragerateshallbeasperthe“BraefootBayAssessment” rateforthesizeoftheperformingVesselonthedateoftheCompletionofLoading.

3.5.5.4 WherenodemurrageratecanbeestablishedunderArticle3.5.5.2orArticle3.5.5.3,thedemurrage rateshallbeasperthemarketratefortherelevant/applicablesizeoftheVesselonthedateofthe CompletionofLoadingasshallbeassessedbyamutuallyagreedindependentandreputablebroker.In theeventthatthePartiesdonotagreeonamutuallyacceptablebroker,theneachPartywillappointa reputableindependentbrokerandthetwosoappointedwillappointathird.Theassessmentthatis furthestawayfromthemedianwillbediscountedandtheapplicabledemurrageratewillbetheaverage ofthetworemainingassessments.

3.5.5.5 WheretheVesselisdischargingtheCargoandcargo(es)forotherreceiver(s)atthePortofDestination andtheSellerisnotabletoidentifywhichreceiverisresponsiblefordemurrageincurred,thenany demurrageshall,intheSeller’ssolediscretion,beproratedbetweentheBuyerandtheotherreceiver(s) inproportiontothedischargedquantityoftheBuyer’sandeachreceiver’scargo.

3.5.5.6 TheBuyer’sobligationtopaydemurrageshallbeabsoluteandshallnotbeexcusedbyoperationof Article15.Howeverwheredemurrageisincurreddirectlyasresultofadverseweatherorseastate conditionsorasaresultoffire,explosion,strike,lockout,stoppageorrestraintoflabouror(wherenot resultingfromwantofduediligencebytheBuyeroritsAffiliates,servants,agentsorcounterparties)by breakdownofmachinery,plantorequipmentattheTerminal,andalwaysprovidedtheVesselisnot alreadyondemurrage,thentherateofdemurrageshallbereducedbyone-halfperrunninghourorpro rataforpartofanhourforthedemurragethusincurred.

3.5.5.7 DemurrageshallbepaidbytheBuyertotheSellernotlaterthan30DaysfromthedateoftheSeller’s invoice.Wherepaymentisnotmadewithintheduedate,interestonoverduepaymentshallbepayablein accordancewithArticle12.2.4.However,wheretheVesselisdelayedatthePortofDestinationformore than14Days,thentheSellermaysendprovisionalinvoicesforimmediatepayment,butwithoutprejudice totheBuyer’srighttodisputeliabilityaftertheCompletionofDischarge.

2011 version 1.0 23

DEL

IVER

Y T

ERM

S -

CIF

, CFR

, CIF

/CFR

OU

TT

UR

N

3.5.6 Discharge of the Vessel without production of bills of lading/change of destination/change of quantity

3.5.6.1 Where,pursuanttoaletterofindemnity(“LOI”)issuedbytheSeller(orthirdparty)totheShip-owner: (a) theCargoisdischargedwithoutbillsofladingbeingavailableforpresentationtotheVessel’s masteratthePortofDestination;and/or

(b) theCargoisdischargedataPortofDestinationotherthanthatnamedinthebilloflading;and/or

(c) theVesseldischargesaquantityoftheCargothatisdifferentfromthebillofladingquantity thentheBuyershallindemnifyandholdtheSellerharmlessinrespectofanyliability,loss, damageorexpenseofwhatsoevernaturewhichtheSellermayincur,directlyorindirectly,in relationtotheShip-ownerinrespectofsuchLOIand/orbyreasonofdeliveringtheCargoas statedinthisArticle3.5.6.1.

3.5.6.2 TheprovisionsofArticle3.5.6shallnotbeincludedwithinthescopeofArticle18.1.

3.6 DeadfreightAnydeadfreightincurredbytheSellerasadirectresultofmeetingtherequirementsofthePortofDestinationnominatedbytheBuyershallbefortheBuyer’saccount.AnydeadfreightincurredsolelyfortheSeller’spurposeshallbefortheSeller’saccount.

3.7 Lightering and shifting at the Port of Destination

3.7.1 Lightering and ship-to-ship transfer

3.7.1.1 TheBuyermayrequesttheVesseltobelighteredand/ortocarryoutship-to-shiptransfer(“STS”)and theSellershallnotunreasonablydenysuchrequest.Anyandallexpensesincurredforlighteringand/or STSoperationsshallbefortheBuyer’saccountandalltimeexpendedinconnectionwithsuchoperations shallcountasLaytimeforthepurposesofcalculatingtheliabilityfordemurrageundertheprovisionsof Article3.5.4andArticle3.5.5.

3.7.1.2 Exceptinrelationtoanylighteringand/orSTSoperationscarriedoutattherequestofandforthepurpose oftheSeller,anysuchoperationsshallbeattheBuyer’sriskandexpense,and: (a) theBuyershallbeliabletotheSellerinrespectofanylosses,costs,damagesandproceedings arisingtherefromandshallindemnifytheSellerinrespectthereof;and (b) alltimeusedforanylighteringand/orSTSoperations,evenwheretheVesselisoutsideport limitsshallbecountedorincludedincalculatingthetimetakenbytheBuyertodischargethe VesselorthetimeinrespectofwhichtheBuyerisliablefordemurrage(excludingonlyanytime consumedforthepurposesstatedinArticle3.5.4.5).Anyadditionalsteamingand/orwaitingtime usedsolelyforthepurposeofanylighteringand/orSTSoperationsshallcountasLaytimeor, wheretheVesselisondemurrage,asdemurrage.Wheredischargetakesplacesolelyusing lightersand/orbySTS,thentheLaytimeshallceaseuponseparationofthelastreceivingvessel.

3.7.1.3 Anylighteringand/orSTSoperationsshallbeconductedinaccordancewiththeproceduresstatedinthe latesteditionoftheShiptoShipTransferGuideaspublishedbyICS/OCIMF.Thelighteringand/or receivingvesselshallbesubjecttotheSeller’sprioracceptance,whichshallnotbeunreasonably withheld.AnyfailuretomeettherequirementsofStatoilVettingshallalwaysbeconsideredasa reasonablegroundforwithholdingacceptance.

3.7.1.4 TheprovisionsofArticle3.7.1shallnotbeincludedwithinthescopeofArticle18.1andArticle18.2.

3.7.2 Shifting

TheBuyermayrequiretheSellertoshifttheVesselatthePortofDestinationfromonesafeBerthoranchoragetoanothersafeBerthoranchorage.ThecostandtimeofshiftingfortheBuyer’spurposesshallbefortheBuyer’saccount.

2011 version 1.0 24

DEL

IVER

Y T

ERM

S -

CIF

, CFR

, CIF

/CFR

OU

TT

UR

N

3.8 Ice

3.8.1 IncaseoficeatorenroutetothePortofDestinationtheVesselshallnotforceice,butshallfollow channelscutbyicebreakersunlessthemasterconsidersonreasonablegroundsthatsuchnavigation willnotbesafe.TheBuyershallbeobliged,atitsowncostandrisk,toplacebothicebreakersandanice advisorattheVessel’sdisposalwherethemasterdeemsthisnecessary.WheretheSelleragreesto continueonsuchavoyage,thentheBuyerundertakestoreimbursetheSellerfor: (a) anyextrainsuranceapplicableincludinganydeductible;and

(b) thecostsofanyicedamageincurred;and

(c) anycharterhireordamagespaidbytheSellertotheShip-ownerfortheperiodoftherepairdue tosuchicedamage,includingdeviationtotherepairyard.

3.8.2 WherethemasterdeemstheVesseltobeindangerofbeingfrozeninatthePortofDestination,the Sellermay,atitssolediscretion,ordertheVesseltoceasedischargingforthwithandleavethePortof Destination.InsuchcircumstancestheBuyershall,onitsownaccount,placeicebreakersand/ oraniceadvisorattheVessel’sdisposalwherethemasterdeemsthisnecessary.

3.8.3 WherethePortofDestinationisinaccessibleduetoice,orintheeventthemasterdeemstheVessel indangerofbeingfrozenin,theVesselwillproceedtothenearestsafeice-freepositionandatthesame timetheSellerwillrequestrevisedorders.Immediatelyuponreceiptofsuchrequest,theBuyershall nominateanalternativeice-freeandaccessibleport,wherethereisnodangerofbeingfrozenin andwheretherearefacilitiesforreceivingtheCargoinbulk.Inthisevent,anyextrafreight,expenses, costs,demurrageandduesincurredasresultofsuchchangeanddamagespayabletotheShip- ownershallbepaidforbytheBuyer.WheretheBuyerfailstonominateanalternativeportwhichis reasonablyacceptabletotheSeller,theBuyershallcoveralladditionalcostsincurredbytheSellerasa resultoftheVesselnotbeingabletocompleteitsvoyageasintended.

3.9 Insurance

3.9.1 Cargo insurance

AnycargoinsurancetobeprocuredundertheAgreementshallbesubjecttotheNorwegianCargoClauses(A),InstituteCargoClauses(A),theInstituteBulkOilClausesoranyothertermswhichprovidethesameorgreaterlevelsofcoverage,whichfortheavoidanceofdoubtshallexcludewarrisks,strikes,riotsandcivilcommotionsrisksinrespectoftheCargo.ThecargoinsuranceprocuredpursuanttothisArticle3.9.1shallbeunderwrittenbyafirstclassinsurer(s)tothefullvalueoftheCargoplus10%subjecttoadeductibleof0.5%ofthefullvalueoftheCargo.SuchinsuranceshalloperatefromthetimeriskpassestotheBuyerinaccordancewithArticle3.1untiltheProductpassestheVessel’sfirstpermanentmanifoldflangeatthePortofDestination.Theinsuranceandtherighttoclaimunderitshallbefullyassignableto,orby,theSelleroritsorder.

3.9.2 War risk insurance for the Cargo

TheSellerdoesnotundertaketoprocureinsuranceagainstwarrisks,strikes,riotsandcivilcommotionsrisksinrespectoftheCargo.However,theBuyermay,byNotice,receivedbytheSelleratleastthreeWorkingDayspriortotheCommencementofLoading,requestSellertoprocuresuchinsurance,ifobtainable.Where,uponrequestasaforesaid,theSellerprocuressuchinsurance,itshallbesubjecttoInstituteWarClauses(Cargo)andInstituteStrikesClauses(Cargo)currentonthedateofsailingoftheVessel.ThepremiumadvisedbytheSellerinrespectofsuchinsuranceshallbechargedtoandberecoverablefromtheBuyerbytheSellerasanadditiontothepurchasepriceandsuchadditionshallthenformpartofsuchpurchaseprice.

2011 version 1.0 25

DEL

IVER

Y T

ERM

S -

CIF

, CFR

, CIF

/CFR

OU

TT

UR

N

3.9.3 Additional war risk insurance for the Vessel and related expenses

3.9.3.1 Where,onitsvoyagetothePortofDestination,theVesselisrequiredinperformanceoftheAgreement totransitthroughortoanareaorplaceasaresultofwhichtheSellerincurs,pursuanttothetermsof therelevantcharterparty,additionalcostsorchargesincludinginsuranceorwarriskinsurancepremiums fortheVessel’shullandmachinery,protectionandindemnityorcargoinsurances;crewwarbonusesand theprovisionofsecurityservicesfortheVessel,theSellershallbereimbursedbytheBuyerinrespectof: (a) anyadditionalinsuranceand/oralladditionalpremiumsinexcessofthoseprevailingontheDeal ExecutionDateincluding,butnotlimitedto,warriskinsurancepremiumsforHullandMachinery and/orProtectionandIndemnityrisks;and/or (b) allotherexpenses,includingcrewwarbonusesandthecostsofsecurityservicesfortheVessel; thattheSellerisrequiredtopaytotheShip-ownerpursuanttothetermsoftherelevant charterparty.

3.9.3.2 Thecostofsuchadditionalinsurance,additionalpremiumsand/orotherexpensesreferredtoinArticle 3.9.3.1shallbepaidbytheBuyertotheSellerinadditiontothepricepayablepursuanttotheAgreement.

3.10 Seller’s refusal to complete the voyage

3.10.1 NotwithstandingArticle3.9.3,theSellerreservestherighttorefuseatanytime: (a) todirecttheVesseltoundertakeortocompletethevoyagetothePortofDestinationortotransit to/proceedto/remaininareaswherethiswouldmeantheVesselbreachinganyInternational NavigatingLimits,similarinsurancerestrictionsorcontractualwarrantiesor,intheSeller’s opinion,toriskthesafetyoftheVessel,itscargoorcrewortoriskicedamage;

(b) totransitorproceedtoorremaininareaswherethereisawar(defactoordejure)orthreat thereof;

(c) priortotheCommencementofLoading,todirectanyVesseltoundertakethevoyagetothe intendedPortofDestinationwhich,intheSeller’sreasonablyheldopinion,wouldinvolve abnormaldelay;or (d) toundertakeanyactivityinfurtheranceofthevoyagewhichintheopinionoftheVessel’smaster couldplacetheVessel,itscargoorcrewatrisk.

3.10.2 FollowingtheSeller’sNoticetotheBuyerofitsrefusaltodirectaVesseltoundertakeortocomplete thevoyageasstatedinArticle3.10.1,theBuyershallnominateanalternativeportreasonablyacceptable totheSeller.Inthisevent,anyextrafreight,expenses,demurrageandduesincurredasresultofsuch changeanddamagespayabletotheShip-ownerasaresult,shallbepaidforbytheBuyer.Wherethe BuyerfailstonominateanalternativeportreasonablyacceptabletotheSeller,theBuyershallcoverall additionalcostsincurredbytheSellerasaresultoftheVesselnotbeingabletocompleteitsvoyageas intended.

3.10.3 WheretheSellerdirectsaVesseltoundertakeortocompletethevoyageasreferredinArticle3.10.1, theBuyerundertakestoreimbursetheSeller,inadditiontothepriceoftheCargo,foralladditionalcosts incurredbytheSellerinordertocompletethevoyageandfacilitatethereturnvoyageoftheVesselto theclosestsafeareaafterdischargeoftheCargo,includinganyadditionalinsurancepremiumsandany othersumsthattheSellermayberequiredtopaytotheShip-owner.

2011 version 1.0 26

DEL

IVER

Y T

ERM

S -

CIF

, CFR

, CIF

/CFR

OU

TT

UR

N

3.11 Charterparty conditions

3.11.1 TheSellermayarrangeshipmentunderbillsofladingwhichincorporatecharterpartyconditionsnormally inuseforvessels.Withoutprejudicetothegeneralityoftheforegoing,suchconditionsshallbedeemedto include: (a) theprovisionthattheshipmentshallbepumpedoutoftheVesselattheVessel’sexpense;and

(b) theprovisionthatwhere,atanytimeafterloadingbutbeforetheCommencementofDischarge; (i) importationoftheProductcomprisingtheshipmentatthePortofDestinationis prohibitedunderthelawsofthecountryinwhichsuchProductwasproduced,orby regulations,rules,directivesorguidelinesappliedbythegovernmentofthatcountryor anyrelevantagencythereof;and/or (ii) thecountry,state,territoryorregionatwhichthePortofDestinationbecomesan EmbargoedCountry(asdefinedinArticle20.1), theshipmentshallbedischargedatanalternativesafeportnominatedbytheBuyerthatisnot subjecttoanysuchprohibitionandthatisacceptabletotheSeller(whichacceptanceshallnotbe unreasonablywithheld).

3.11.2 WhereanyprohibitionreferredtoinArticle20becomesapplicable,suchalternativeportshallbedeemed tobethePortofDestinationstipulatedundertheAgreementfortheshipmentinquestionandallextra expenses(ifany)involvedintheVessel’sreachingsuchalternativePortofDestinationand/orinthe dischargeoftheshipmentthereatshallbefortheBuyer’saccount.

3.11.3 WheretheBuyer,bywritteninstructiontotheSeller,requeststhattheVessel: (a) co-mingledifferentgradesofcargobelongingtotheBuyer;and/or

(b) otherwisebreachtheVessel’snaturalsegregation;and/or

(c) dopetheCargobyintroducingadditivesafterloading;and/or

(d) adddyetotheCargoafterloading;and/or

(e) performonboardblendingoftheCargo;and/or

(f) carryadditives/dyeindrumsondeck;and/or

(g) carryoutsuchothercargooperationastheBuyermayreasonablyrequireandalwaysproviding thattheVesseliscapableofperformingsuchoperationsandthatsuchoperationsarewithinthe scopeofthecharterpartyconditionsorotherwiseagreedbytheShip-owner thentheBuyershallindemnifyandholdtheSellerharmlessagainstanyliability,loss,damage, delayorexpensethattheSellermaysustainbyreasonofcomplyingwiththeBuyer’srequest. TheindemnitygivenbytheBuyertotheSellershallbenolessinscopethantheindemnity requiredbytheShip-ownertocomplywiththeBuyer’srequest.Thisprovisionshallnotbe includedwithinthescopeofArticle18.1.

3.12 Offshore Loaded Crude

3.12.1 TheSellerwillpromptlynotifytheBuyerofanychangesinanygivennominationsundertheAgreement arisingfromproductionchanges,weather,operationalreasonsoranymatterbeyondtheSeller’s reasonableinfluence.AnysuchmodificationsnotifiedbytheSellerinthequantityoftheCargo,date rangesorfinalloadingordischargerangeasthecasemaybeshallbedeemedtobeacceptedbythe Buyerandanymodifiedquantity,daterangesorfinalloadingordischargerangeshallreplacethequantity and/ordaterangesand/orfinalloadingordischargedatesrespectivelyasnominated.

2011 version 1.0 27

DEL

IVER

Y T

ERM

S -

CIF

, CFR

, CIF

/CFR

OU

TT

UR

N

3.12.2 TheSellermay,bywrittenNoticetotheBuyer,requirethattheVesselshallhaveprioritytodischargeat thePortofDestinationaheadofothervesselswhetherornottheyhavecommenceddischarging.Where suchrequirementarises,theBuyershallensurethattheVesselcanproceedwithoutwaitingdirectlytoa BerthprovidedbytheBuyerandcommencedischargingimmediatelyonarrivalattheBerth

3.12.3 TheSellershallindemnifytheBuyeragainstitsliabilityforsubstantiatedunavoidableextraportdues anddemurrageincurredasadirectresultofsuchprioritybeinggiventotheSeller’sVesselbyvessels thathavetenderedvalidNORtodischarge,providedthattheindemnityagainstliabilityfordemurrage shallineachcasebelimitedtotheequivalentoftheamountoftimeactuallyusedbytheSeller’sVesselto dischargetheCargo.

3.12.4 WherethetimeallowedtotheBuyerfordischargehasexpired,whethertheCargohasbeenfully dischargedornot,theSellermay,atitssolediscretion,forthwithordertheVesseltoceasedischarging forthwithandleavethedischargeTerminal.WheretheSellerexercisessuchoption,theSeller’sinvoice shallbebasedonthenetoutturnquantitydischargedascertainedeitherinaccordancewithgood standardpracticeatsuchPortofDestinationor,wheresuchdischargewasattendedbyanIndependent Inspector,asdeterminedbysuchIndependentInspector,whosedeterminationsshall,exceptincasesof fraudormanifesterror,beconclusiveandbindingonbothPartiesforinvoicingpurposesbutwithout prejudicetotherightsofeitherPartytomakeanyclaim.Insuchevent,notwithstandingtheany provisionsoftheAgreementregardingcostofdeterminationofquantityandquality,allchargesinrespect ofsuchindependentinspectionshallbesharedequallybetweenthePartiesandtheIndependent Inspector’sreportshallbemadeavailabletobothParties.Theriskandtitletothecrudeoilremaining onboardshallpasstotheSellerimmediatelyupontheCompletionofDischarge.

3.12.5 NotwithstandinganyprovisionscontainedelsewhereintheAgreementastohowtheLaytimeand/or demurrageistreatedand/orcalculatedundervarioussituations,anydelayorinterruptionofanyoperation atthePortofDestinationbyreasonofbadweatherand/orseaconditionsorasaresultoffire,explosion, strike,lockout,stoppageorrestraintoflabouror(wherenotresultingfromwantofduediligencebythe BuyeroritsAffiliates,servants,agentsorcounterparties)bybreakdownofmachineryorequipmentatthe TerminalshallcountinfullasLaytimeand/orastimeondemurragewheretheVesselisondemurrage.

2011 version 1.0 28

DEL

IVER

Y T

ERM

S -

DA

P

ARTICLE 4. DELIVERED AT PLACE (DAP)

4.1 Risk and titleRiskandtitletotheCargoshallpassfromtheSellertotheBuyerastheCargopassesthelastpermanentmanifoldflangeoftheSeller’sVesselupondischargeoftheCargoatthePortofDestination.


4.2.1 DeterminationofthequantityandqualityoftheCargoshall,unlessotherwiseagreedintheSpecial Conditions,becarriedoutinaccordancewiththisArticle4.2.

4.2.2 TheoutturnquantityandqualityshallbedeterminedatthePointofDestinationbymeasurement, samplingandtestingcarriedoutbyanIndependentInspectorappointedbytheSellerandreasonably acceptabletotheBuyer.ThefindingsoftheIndependentInspectorshall,saveforfraudormanifesterror, befinalandbindingonbothPartiesforallpurposes.

4.2.3 ForthepurposesofdeterminingthequalityoftheCargotheIndependentInspectorshallcarryoutor witnesstestsonacompositesampleoftheCargowhichshallbetakenfromtheVessel’stanksby ortakeninthepresenceoftheIndependentInspectoratthePortofDestinationimmediatelypriortothe CommencementofDischargeandinaccordancewiththetestmethod(s)referredtointhespecification oftheProductstatedintheSpecialConditionsor,wherenotestmethodisstated,inaccordancewith themostcurrentAmericanPetroleumInstitute(“API”)andAmericanSocietyforTestingandMaterials (“ASTM”)measurementstandardsatthetimeofdelivery.

4.2.4 DeterminationofthequantityoftheCargobytheIndependentInspectorshallproceedasfollows: (a) WheretheCargoisDeliveredfromtheSeller’sVesseldirectlyintostaticshoretanks(that isshoretankstoorfromwhichnoproductisbeingpumpedotherthantheCargo),thequantity oftheCargosoDeliveredshallbedeterminedbytheIndependentInspectorbyreferencetoPort ofDestinationmetermeasurementstakenorwitnessedbytheIndependentInspectorin accordancewiththeAPIManualofPetroleumMeasurementStandards(“MPMS”)Chapter5. MetersshallbeprovedpriortodischargebyorinthepresenceoftheIndependentInspector inaccordancewithMPMSChapter4.Wheremeteringfacilitiesarenotavailable,orwhereinthe opinionoftheIndependentInspectorthemetersdidnotperforminaccordancewithMPMS Chapter5,orwherethemeterswerenotprovenpriortodischargeinaccordancewithMPMS Chapter4,thegrossquantityoftheCargoshallbedeterminedbyreferencetoshoretank gaugingstakenorwitnessedbytheIndependentInspectorinaccordancewithMPMSChapter3; or

(b) WheretheCargoisDeliveredfromtheSeller’sVesseldirectlyintoactiveshoretanks(that isshoretankswhereproductisbeingpumpedoutofthetankduringthedischargeofthe Cargo)andwherenocorrectlyfunctioningorprovenPortofDestinationmetersareavailable inaccordancewithArticle4.2.4(a),thegrossquantityoftheCargoshallbedeterminedbythe IndependentInspectorbyreferencetotheVessel’sdischargedfiguresasadjustedbyitsVessel ExperienceFactor(“VEF”)inaccordancewithVEFAddendumtoMPMSChapter17.1.

4.2.5 TheBuyershallensurethattheIndependentInspectorshallhavefullaccesstothefacilitiesatthePortof DestinationandshallbeentitledtohavetestscarriedoutthatarenecessarytoenabletheIndependent Inspectortoperformitsduties.

4.2.6 Where(i)theIndependentInspectordidnotundertakeordidnotwitnessthemeasurementofquantity and/or(ii)theBuyerwasinbreachofArticle4.2.5and/or(iii)theIndependentInspectorfailedtofollowthe proceduresstatedinthisArticle4.2,thenthefindingsoftheIndependentInspectorinrespectofquantity willnotbefinalandbindingandthequalityshallinsteadbedeterminedfromtheVessel’sdischarged figuresasadjustedbytheVEFinaccordancewithVEFAddendumtoMPMSChapter17.1.

2011 version 1.0 29

DEL

IVER

Y T

ERM

S -

DA

P

4.2.7 ThecostoftheIndependentInspector’sservicesshallbesharedequallybetweentheParties.



TheVesselshallcomplywithallapplicablegovernmental,localandportauthority,laws,Statoilrequirementsand/orregulationsinforceatthePortofDestination,includingbutnotlimitedto,theTerminalregulationsandrequirements.Inaddition,theVesselshallcomplywiththisArticle4.3andSchedule4.

4.3.2 General requirements for all Vessels

4.3.2.1 TheVesselshallalsocomplywithallinternationallaws,regulationsand/orrequirementsincluding,but notlimitedto,theInternationalConventionfortheSafetyofLifeatSea,1974,asamended,MARPOL, allotherInternationalMaritimeOrganisation(“IMO”)rulesandregulations,andanyUnitedStatesCoast Guardregulationsasapplicable.

4.3.2.2 WithoutprejudicetoArticle4.3.2.1,theVesselshall: (a) beownedbyordemisecharteredtoamemberoftheInternationalTankerOwnersPollution FederationLtd.(ITOPF),unlesstheVesselisaLPGtanker;

(b) whennecessary,carryonboardcertificate(s)requiredinaccordancewiththeInternational ConventiononCivilLiabilityforOilPollutionDamage(CLC),1969,asamended,theInternational ConventiononCivilLiabilityforBunkerOilPollutionDamage2001andaCertificateOfFinancial Responsibility;

(c) havethemaximumprotectionandindemnityinsurancecoverageforpollutionnotlessinscope andamountthanavailableatanytimeundertherulesoftheInternationalGroupofP&IClubs;

(d) haveonboardavalidSafetyManagementCertificate,issuedpursuanttotheInternationalSafety Management(ISM)Code2002;

(e) bemanned,operatedandmaintainedtocomplywiththestandardsstatedinthemostrecent editionoftheInternationalSafetyGuideforOilTankersandTerminals(ISGOTT),theappropriate IMOrecommendationsandtheOCIMFGuidelinesfortheControlofDrugsandAlcoholOnboard Ship(1995),eachasamendedfromtimetotime;and (f) onlydischargedirtyballast,bilges,slopsorothersubstancesintowaterinaccordancewith MARPOL.


WheretheVesseldoesnotmeettherequirementsstatedinArticle4.3,theTerminaland/ortheBuyermayrefusetoberth,dischargeorcontinuetodischargetheVessel.

4.4 Nomination of the Vessel and the Port of Destination

4.4.1 Notice of nomination of the Vessel

TheSellershallgiveaNoticetotheBuyeroftheVesselwhichistoDelivertheCargo(“thenomination”). Thenominationshallspecify: (a) thegradeand/orqualityandtheapproximatequantityoftheCargotobeDeliveredtotheBuyer;

(b) thenameoftheVesselandsuchotherinformationasmayreasonablyberequiredbythePortof Destination;and

(c) thedescriptionofanyothercargoonboard.

2011 version 1.0 30

DEL

IVER

Y T

ERM

S -

DA

P

4.4.2 Acceptance/rejection of nomination and the Buyer’s instructions

4.4.2.1 ThenominatedVesselshallbesubjecttotheBuyer’sacceptancewhichshallnottobeunreasonably withheld.TheBuyershallprovidetheSellerwithaNoticeofacceptanceorrejectionofthenominated VesselwithinoneWorkingDayofreceiptofthenomination.

4.4.2.2 AnyNoticeofrejectionshallstatethespecificreason(s)fortheBuyer’srejectionsothattheSellermay takereasonablecorrectiveaction(s),includingmakingafurthernomination,withoutprejudiceasto whethertheBuyer’srejectionisreasonableornot.


4.4.3.1 UnlessotherwisestatedintheSpecialConditions,theBuyershallnotifytheSellerwithinoneWorking DayoftheBuyer’sreceiptoftheSeller’snominationstatedinArticle4.4.1,of: (a) thePort(s)ofDestination,unlessalreadyspecifiedintheSpecialConditions;and

(b) allinstructionsregardingcustomarydocumentationwhichmayberequiredatthePortof Destination;and

(c) theidentityoftheTerminal(s)atthePortofDestination,withinstructionstoenabletheVesselto prepareandsubmitnecessaryinformationtothecustomsorborderauthorities.

4.4.3.2 AnydelaysindischargingtheCargocausedbytheBuyer’sfailuretoprovideanynecessaryinformation atthePortofDestinationwillbefortheBuyer’saccount.TheBuyershallindemnifytheSellerforallcosts, lossesanddamages,including,butnotlimitedto,demurrageand/ordetentionincurredbytheSellerasa resultthereof.

4.4.3.3 TheBuyerhastheoptiontotaketheDeliveryataplaceotherthanthatagreedintheSpecialConditions subjectto: (a) theterms,conditionsandexceptionsoftherelevantcharterparty;and

(b) theSeller’spriorapproval;

alwaysprovidedtheBuyeracceptstopaysuchcompensationastheSellerrequestsforthealternative PortofDestinationandindemnifiestheSellerandholdsitharmlessinrespectofanyliability,loss, damageorexpenseofwhatsoevernaturewhichtheSellermayincur(directlyorindirectly)totheShip- ownerfortheDeliveryoftheCargoataportotherthanthatstatedinthebillsoflading.

4.4.4 Substitution of the VesselTheSellermaysubstitutetheVesselwithanotherofsimilarsizeandcharacteristicsprovidedthattheSellerfulfilsitsobligationsunderArticle4.4.1.

4.4.5 Delivery Date Range IntheeventoftheDeliverybeingmadeasapartcargolot,theSellermaytendertheNORafterexpiryof theDeliveryDateRangeaslongastheVesselarrivesatthePortofDestinationwithintheDeliveryDate Range.

4.5 The Port of Destination

4.5.1 Requirements of the Port of DestinationTheBuyershallprovideasafeportandBerthfortheVesselwhichtheVesselcan,whenfullyladen,proceedto,lieat,DelivertheCargoatanddepartfrom,alwayssafelyafloatandalwaysfreefrompossibleairdraft(s)orotherphysicalorlegalrestrictions.

4.5.2 Port costs AllduesandotherchargesontheSeller’sVesselatthePortofDestination,otherthanthosedefinedby WorldscaleasbeingfortheShip-owner’saccount,shallbebornebytheBuyer.

2011 version 1.0 31

DEL

IVER

Y T

ERM

S -

DA

P

4.5.3 Laytime

4.5.3.1 TheLaytimeallowedtotheBuyerfordischargingtheCargo,SHINC(Sundaysandholidaysincluded), shallbeasagreedbetweenthePartiesintheSpecialConditions.

4.5.3.2 WherenoLaytimeisagreedintheSpecialConditions,theLaytimeallowedtotheBuyershallbeeither: (a) onehalfofthelaytimeallowedtotheSellerunderthecharterparty;or

(b) wherethecharterpartymakesnostipulationsastothelaytimeallowed,theBuyershallbe entitledtoonehalfofsuchlaytimethatwouldbecustomaryinavoyagecharterpartyforsucha vesselonthistrade.

NotwithstandingthisArticle4.5.3.2,fordeliveriesofcrudeoilorcondensatetheLaytimeallowedfor dischargingtheCargoshallbeaminimumof36hours.

4.5.3.3 WheretheDeliveryoftheCargoisbeingmadeasapartcargolot,thentheLaytimeallowedtotheBuyer fordischargingtheCargoshallbeproratedtothequantityoftheCargocomparedwiththefullcargo capacityoftheVessel.

4.5.3.4 TheLaytimeshallcommence,BerthornoBerth,sixhoursaftertheVessel’smasteroritsagenthas tenderedtheNORtotheTerminalatthePortofDestinationuponarrivaloftheVesselatthecustomary anchorageortheplacewheretheVesselisorderedtoawaitfordischarging(WWWW),whicheveris applicable,oratthetimewhentheVesselissecurelymooredattheBerth,whicheverisearlier.

4.5.3.5 WheretheVesseltenderstheNORatthePortofDestinationpriortotheDeliveryDateRange,the LaytimeshallcommencesixhoursaftertheNORbutnotpriorto00.00onthefirstdayoftheDelivery DateRange,unlesstheBuyerallowstheVesseltoberthearlier,inwhichcasetheLaytimecommences whentheVesselissecurelymoored.

4.5.3.6 WheretheVesseltenderstheNORatthePortofDestinationduringtheDeliveryDateRange,thenthe LaytimeshallstartinaccordancewiththegeneralprovisionsofthisArticle4.5.3.

4.5.3.7 WheretheVesseltenderstheNORatthePortofDestinationaftertheDeliveryDateRange,thenthe LaytimeshallstartwhentheVesselisallfastor36hoursaftertheNORisgiven,whicheverisearlier. Saveasaforesaid,Article4.5.3andArticle4.5.4shallapplyinfull.

4.5.3.8 TimespentbytheVesseloninwardpassageshallnotcountasLaytimeortimeondemurrage.

4.5.3.9 WheretheCargoisarefinedpetroleumproduct(excludingLPG)theVessel,shallbeabletomaintain anaverageof100PSIattheVessel’smanifoldduringdischarge(savewhenstripping)providedthatthere arenointerruption(s)andalwaysprovidedshorefacilitiespermit.

4.5.3.10WheretheCargoiscrudeoil,theVesselshallbeabletoeithermaintainanaverageof100PSIat theVessel’smanifoldordischargetheCargowithin32hours(eighthourslesswherecrudeoilwashingis notconducted)andalwaysprovidedthatshorefacilitiespermit.

4.5.3.11WheretheCargoiscondensate,theVesselshallbeabletoeithermaintainanaverageof100PSIatthe Vessel’smanifoldordischargetheCargowithin24hoursandalwaysprovidedthatshorefacilitiespermit.

4.5.3.12WheretheCargoisLPG,theVesselshallbeabletodischargetheCargoasagreedintheSpecial Conditions,butintheabsenceofsuchagreementattherateconsistentwiththeVessel’sactualcapability andalwaysprovidedthatshorefacilitiesandseawatertemperaturepermit.

4.5.3.13TimelostduringdischargeasaresultoftheVesselbeingunabletoperformasstatedinArticle4.5.3.9to Article4.5.3.12shallnotcountasLaytimeortimeondemurrage.

2011 version 1.0 32

DEL

IVER

Y T

ERM

S -

DA

P

4.5.3.14TheLaytimeshallceaseatthetimeoftheDisconnectionofHoses.However,wheretheVessel’s departurefromthePortofDestinationisdelayedsolelyfortheBuyer’spurposesformorethantwohours aftertheDisconnectionofHoses,theLaytimeortimeondemurrageshallrecommenceuntiltheVesselis allowedtoleavethePortofDestination.

4.5.3.15WheretheVesselisorderedtoshiftBerthortogotoanchorageotherthanduetoareasonattributable totheSellerortheVessel,thenthetimetakentomoveshallcountasLaytimeortimeondemurrage,as thecasemaybe,andanyadditionalcostsshallbefortheBuyer’saccount.

4.5.3.16TheprovisionsofArticle15shallnotapplytoArticle4.5.3andArticle4.5.4.

4.5.4 Demurrage

4.5.4.1 WheretheLaytimeallowedisexceeded,theBuyershall,subjecttotheprovisionsofthisArticle4.5.4, haveanindependentobligationtopaydemurragetotheSellerinrespectoftheexcesstime.

4.5.4.2 Thedemurragetobepaidshallbecalculatedbymultiplyingtheexcesstimebythedemurragerate agreedbetweenthePartiesintheSpecialConditionsperDay(andprorataforpartofaDay).

4.5.4.3 WherenodemurragerateisagreedintheSpecialConditions,thedemurragerateshallbedeterminedas follows: (a) wheretheProductiscrudeoilorcondensatethedemurragerateshallbebasedontheAverage FreightAssessmentRate(AFRA)ofWorldscaleapplicabletothesizeoftheVesselaspublished bytheLondonTankerBrokersPanelandcurrentonthedateoftheCompletionofLoading;or (b) wheretheProductisLPG,thedemurragerateshallbeasperthe“BraefootBayAssessment” rateforthesizeoftheperformingvesselonthedateoftheCompletionofLoading.

4.5.4.4 WherenodemurrageratecanbeestablishedunderArticle4.5.4.2orArticle4.5.4.3,thedemurragerate shallbeasperthemarketratefortheapplicablesizeofvesselonthedateoftheCompletionofLoading asshallbeassessedbyamutuallyagreedindependentandreputablebroker.Intheeventthatthe Partiesdonotagreeonamutuallyacceptablebroker,theneachPartywillappointareputable independentbrokerandthetwosoappointedwillappointathird.Theassessmentthatisfurthestaway fromthemedianwillbediscountedandtheapplicabledemurrageratewillbetheaverageofthetwo remainingassessments.

4.5.4.5 WheretheVesselisdischargingtheCargoandcargo(es)forotherreceiver(s)atthePortofDestination andtheSellerisnotabletoidentifywhichreceiverisresponsiblefordemurrageincurred,thenany demurrageshall,intheSeller’ssolediscretion,beproratedbetweentheBuyerandtheotherreceiversin proportiontothedischargedquantityoftheBuyer’sandeachreceiver’scargo.

4.5.4.6 TheBuyer’sobligationtopaydemurrageshallbeabsoluteandnotexcusedbyoperationofArticle15. Howeverwheredemurrageisdirectlyincurredasresultofadverseweatherorseastateconditionsor asaresultoffire,explosion,strike,lockout,stoppageorrestraintoflabouror(wherenotresultingfrom wantofduediligencebytheBuyeroritsAffiliates,servants,agentsorcounterparties)bybreakdownof machinery,plantorequipmentattheTerminal,andalwaysprovidedtheVesselisnotalreadyon demurrage,thentherateofdemurrageshallbereducedbyone-halfperrunninghourorprorataforpart ofanhourfordemurragethusincurred.

4.5.4.7 DemurrageshallbepaidbytheBuyertotheSellernotlaterthan30DaysfromthedateoftheSeller’s invoice.Wherepaymentisnotmadewithintheduedate,interestonoverduepaymentshallbepayablein accordancewithArticle12.2.4.However,wheretheVesselisdelayedatthePortofDestinationformore than14DaysthentheSellermaysendprovisionalinvoicesandthesearepayableimmediately,but withoutprejudicetotheBuyer’srighttodisputeliabilityafterdischargeiscompletedandtheVesselhas sailed.

4.6 DeadfreightAnydeadfreightincurredbytheSellerasadirectresultofmeetingtherequirementsofthePortofDestinationnominatedbytheBuyershallbefortheBuyer’saccount.AnydeadfreightincurredsolelyfortheSeller’spurposeshallbefortheSeller’saccount.

2011 version 1.0 33

DEL

IVER

Y T

ERM

S -

DA

P

4.7 Lightering and shifting at the Port of Destination

4.7.1 Lightering and ship-to-ship transfer

4.7.1.1 TheBuyermayrequesttheVesseltobelighteredand/ortocarryoutship-to-shiptransfer(“STS”),and theSellershallnotunreasonablydenysuchrequest.Anyandallexpensesincurredforlighteringand/or STSoperationsshallbefortheBuyer’saccountandalltimeexpendedinconnectionwithsuchoperations shallcountasLaytimeforthepurposesofcalculatingtheliabilityfordemurrageundertheprovisionsof Article4.5.3andArticle4.5.4.

4.7.1.2 Exceptinrelationtoanylighteringand/orSTSoperationscarriedoutattherequestofandforthepurpose oftheSeller,anysuchoperationsshallbeattheBuyer’sriskandexpense,and: (a) theBuyershallbeliabletotheSellerinrespectofanylosses,costs,damagesandproceedings arisingtherefromandshallindemnifytheSellerinrespectthereof;and

(b) alltimeusedforanylighteringand/orSTSoperations,evenwheretheVesselisoutsideport limitsshallbecountedorincludedincalculatingthetimetakenbytheBuyertodischargethe VesselorthetimeinrespectofwhichtheBuyerisliablefordemurrage(excludingonlyanytime consumedforthepurposesstatedinArticle4.5.3.5).Anyadditionalsteamingand/orwaitingtime usedsolelyforthepurposeofanylighteringand/orSTSoperationsshallcountasLaytimeor, wheretheVesselisondemurrage,asdemurrage.Wheredischargetakesplacesolelyusing lightersand/orbySTS,thentheLaytimeshallceaseuponseparationofthelastreceivingvessel.

4.7.1.3 Anylighteringand/orSTSoperationsshallbeconductedinaccordancewiththeproceduresstatedinthe latesteditionoftheShiptoShipTransferGuideaspublishedbyICS/OCIMF.Thelighteringand/or receivingvesselshallbesubjecttotheSeller’sprioracceptance,whichshallnotbeunreasonably withheld.AnyfailuretomeettherequirementsofStatoilVettingshallalwaysbeconsideredasa reasonablegroundforwithholdingacceptance.

4.7.1.4 TheprovisionsofthisArticle4.7.1shallnotbeincludedwithinthescopeofArticle18.1andArticle18.2.

4.7.2 Shifting TheBuyermayrequiretheSellertoshifttheVesselatthePortofDestinationfromonesafeBerthoranchoragetoanothersafeBerthoranchorage.ThecostandtimeofshiftingfortheBuyer’spurposesshallbefortheBuyer’saccount.

4.8 Ice

4.8.1 IncaseoficeatorenroutetothePortofDestinationtheVesselshallnotforceice,butshallfollow channelscutbyicebreakersunlessthemasterconsiders,onreasonablegrounds,thatsuchnavigation willnotbesafe.TheBuyershallbeobliged,atitsowncostandrisk,toplacebothicebreakersandanice advisorattheVessel’sdisposalwherethemasterdeemsthisnecessary.WheretheSelleragreesto continueonsuchavoyage,thentheBuyerundertakestoreimbursetheSellerfor: (a) anyextrainsuranceapplicableincludingthedeductible;

(b) thecostsofanyicedamageincurred;and

(c) anycharterhireordamagespaidbytheSellertotheShip-ownerfortheperiodoftherepairdue tosuchicedamage,includingdeviationtotherepairyard.

4.8.2 WherethemasterdeemstheVesseltobeindangerofbeingfrozeninatthePortofDestination,the Sellermay,atitssolediscretion,ordertheVesseltoceasedischargingforthwithandleavethePortof Destination.InsuchcircumstancestheBuyershall,onitsownaccount,placeicebreakersand/ oraniceadvisorattheVessel’sdisposalwherethemasterdeemsthisnecessary.

2011 version 1.0 34

DEL

IVER

Y T

ERM

S -

DA

P

4.8.3 WherethePortofDestinationisinaccessibleduetoice,orintheeventthemasterdeemstheVessel indangerofbeingfrozenin,theVesselwillproceedtothenearestsafeice-freepositionandatthesame timetheSellerwillrequestrevisedorders.Immediatelyuponreceiptofsuchrequest,theBuyershall nominateanalternativeice-freeandaccessibleport,wherethereisnodangerofbeingfrozeninand wheretherearefacilitiesforreceivingtheCargoinbulk.Inthisevent,anyextrafreight,expenses, demurrageandduesincurredasresultofsuchchangeanddamagespayabletotheShip-ownershallbe paidforbytheBuyer.WheretheBuyerfailstonominateanalternativeportwhichisreasonably acceptabletotheSeller,theBuyershallcoveralladditionalcostsincurredbytheSellerasaresultofthe Vesselnotbeingabletocompleteitsvoyageasintended.

4.9 War risk insurance and related expenses

4.9.1 Where,onitsvoyagetothePortofDestination,theVesselisrequiredinperformanceoftheAgreement totransitthroughortoanareaorplaceasaresultofwhichtheSellerincurs,pursuanttothetermsof therelevantcharterparty,additionalcostsorchargesincludinginsuranceorwarriskinsurancepremiums fortheVessel’shullandmachinery,protectionandindemnityorcargoinsurances;crewwarbonusesand theprovisionofsecurityservicesfortheVessel,theSellershallbereimbursedbytheBuyerinrespectof: (a) anyadditionalinsuranceand/oralladditionalpremiumsinrespectoftheVesselinexcessof thoseprevailingontheDealExecutionDateincluding,butnotlimitedto,warriskinsurance premiumsforHullandMachineryand/orProtectionandIndemnityrisks;and/or (b) allotherexpenses,includingcrewwarbonusesandthecostsofsecurityservicesfortheVessel; thattheSellerisrequiredtopaytotheShip-ownerpursuanttothetermsoftherelevant charterparty.TheSellershallalsobereimbursedbytheBuyerinrespectofanyadditional insuranceand/oradditionalpremiumsfortheCargopayabletothecargoinsurers.

4.9.2 Thecostofsuchadditionalinsurance,additionalpremiumsand/orotherexpensesreferredtoinArticle 4.9.1shallbepaidbytheBuyertotheSellerinadditiontothepricepayablepursuanttotheAgreement.

4.10 Seller’s refusal to complete the voyage

4.10.1 NotwithstandingArticle4.9,theSellerreservestherighttorefuseatanytime: (a) todirectanyVesseltoundertakeortocompletethevoyagetothePortofDestinationortotransit to/proceedto/remaininareaswherethiswouldmeantheVesselconcernedbreachingany InternationalNavigatingLimits,similarinsurancerestrictionsorcontractualwarrantiesor,inthe Seller’sopinion,toriskthesafetyoftheVessel,itscargoorcrewortoriskicedamage;

(b) totransitorproceedtoorremaininareaswherethereisawar(defactoordejure)orthreat thereof;

(c) priortotheCommencementofLoading,todirectanyVesseltoundertakethevoyagetothe intendedPortofDestinationwhich,intheSeller’sreasonablyheldopinion,wouldinvolve abnormaldelay;or

(d) toundertakeanyactivityinfurtheranceofthevoyagewhichintheopinionoftheVessel’smaster couldplacetheVessel,itscargoorcrewatrisk.

4.10.2 FollowingtheSeller’sNoticetotheBuyerofitsrefusaltodirectaVesseltoundertakeortocomplete thevoyageasreferredinArticle4.10.1,theBuyershallnominateanalternativeportreasonably acceptabletotheSeller.Inthisevent,anyextrafreight,expenses,demurrageandduesincurredasresult ofsuchchangeanddamagespayabletotheShip-ownerasaresult,shallbepaidforbytheBuyer. WheretheBuyerfailstonominateanalternativeportreasonablyacceptabletotheSeller,theBuyershall coveralladditionalcostsincurredbytheSellerasaresultoftheVesselnotbeingabletocompleteits voyageasintended.

2011 version 1.0 35

DEL

IVER

Y T

ERM

S -

DA

P

4.10.3 WheretheSellerdirectsaVesseltoundertakeortocompletethevoyageasreferredinArticle4.10.1,the BuyerundertakestoreimbursetheSeller,inadditiontothepriceoftheCargo,foralladditionalcosts incurredbytheSellerinordertocompletethevoyageandfacilitatethereturnvoyageoftheVesselto theclosestsafeareaafterdischargeoftheCargo,includinganyadditionalinsurancepremiumsandany othersumsthattheSellermayberequiredtopaytotheShip-owner.

4.11 Offshore Loaded Crude

4.11.1 TheSellerwillpromptlynotifytheBuyerofanychangesinanygivennominationsundertheAgreement arisingfromproductionchanges,weather,operationalreasonsoranymatterbeyondtheSeller’s reasonableinfluence.AnysuchmodificationsnotifiedbytheSellerinthequantityoftheCargo,date rangesorfinalloadingordischargerangeasthecasemaybeshallbedeemedtobeacceptedbythe Buyerandanymodifiedquantity,daterangesorfinalloading-ordischargerangeshallreplacethe quantityand/ordaterangesand/orfinalloadingordischargedatesrespectivelyasnominated.

4.11.2 TheSellermay,bywrittenNoticetotheBuyer,requirethattheVesselshallhaveprioritytodischarge atthePortofDestinationportaheadofothervesselswhetherornottheyhavecommenceddischarging. Wheresuchrequirementarises,theBuyershallprocurethattheVesselmayproceedwithoutwaiting directlytoaBerthprovidedbytheBuyerandcommencedischargingimmediatelyonarrivalattheBerth.

4.11.3 TheSellershallindemnifytheBuyeragainstitsliabilityforsubstantiatedunavoidableextraportdues anddemurrageincurredasadirectresultofsuchprioritybeinggiventotheSeller’sVesselbyvessels thathavetenderedavalidNORtodischarge,providedthattheindemnityagainstliabilityfordemurrage shallineachcasebelimitedtotheequivalentoftheamountoftimeactuallyusedbytheSeller’sVesselto dischargetheCargo.

4.11.4 WherethetimeallowedtotheBuyerfordischargehasexpired,whethertheCargohasbeenfully dischargedornot,theSellermay,atitssolediscretion,forthwithordertheVesseltoceasedischarging forthwithandleavethedischargeTerminal.

4.11.5 NotwithstandinganyprovisionscontainedelsewhereintheAgreementastohowtheLaytimeand/or demurrageistreatedand/orcalculatedundervarioussituations,anydelayorinterruptionofanyoperation atthePortofDestinationbyreasonofbadweatherand/orseaconditionsorasaresultoffire,explosion, strike,lockout,stoppageorrestraintoflabouror(wherenotresultingfromwantofduediligencebythe BuyeroritsAffiliates,servants,agentsorcounterparties)bybreakdownofmachineryorequipmentatthe TerminalshallcountinfullasLaytimeand/orastimeondemurragewheretheVesselisondemurrage.

2011 version 1.0 36

DEL

IVER

Y T

ERM

S -

FCA

, CPT

, CIP

, DD

P

ARTICLE 5. FREE CARRIER (FCA)

5.1 Risk and titleNotwithstandinganyrightoftheSellertoretainthedocumentsreferredtoinArticle12.2.1untilpayment,riskandtitletotheCargoshallpassfromtheSellertotheBuyerattheagreedPointofLoadingastheCargopassestheinletmanifoldoftheBuyer’sRoadTanker/Railcarinquestionor;whereloadingbygravityfedtoploading,astheCargopassestheoutletoftheTerminal’sloadinghose.


5.2.1 DeterminationofthequantityandthequalityoftheCargoshallbecarriedoutbymeasurement,sampling andtestinginaccordancewiththestandardpracticeinuseatthePointofLoadingatthetimeofloading.

5.2.2 ThequantityoftheCargodeterminedpursuanttoArticle5.2.1(or,whereapplicable,theSpecial Conditions)shallbeinsertedinthecertificateofquantityand/ortheConsignmentNote(s)fortheCargoin accordancewithstandardpracticeinuseatthePointofLoadingatthetimeofloadingandthatquantity shallbeusedtocalculatetheSeller’sinvoice.

5.2.3 WheretheSpecialConditionsprovidefortheappointmentofanIndependentInspectoratthePointof Loading,thequantityand/orthequalityoftheCargoasascertainedorwitnessedbysuchIndependent Inspectorshall,exceptforfraudormanifesterror,befinalandbindingonbothParties.Thecostofthe IndependentInspector’sservicesshallbesharedequallybetweentheParties.

5.2.4 WheredeterminationofquantityandqualityoftheCargopursuanttoArticle5.2.1toArticle5.2.3doesnot takeplace,thequantityandqualityoftheCargoprovidedatthepermanenthoseconnectionoftheRoad Tanker/Railcarshallbethatstatedinthecertificatesofquantityandqualitysoissued.

5.2.5 SubjecttoArticle5.2.3,anydocumentsissuedstatingthequantityandqualitydeliveredinaccordance withthisArticle5.2shallbefinalandbindingonbothPartiesforallpurposes,savefraudormanifesterror.

5.3 Requirements for the Road Tanker/Railcar TheRoadTanker/Railcarshallcomplywithallapplicablegovernmentalandlocalauthoritylawsand/orregulationsandrequirementsofwhatevernatureinforceatthePointofLoading.WheretheRoadTanker/RailcardoesnotcomplywithsuchrequirementstheSellermayrefusetoloadtheRoadTanker/Railcarinquestion.

5.4 Nomination of the Road Tanker/RailcarNominationsoftheRoadTanker/RailcarshallbemadeinaccordancewiththestandardoperatingproceduresoftherelevantPointofLoading.

5.5 The Point of Loading

5.5.1 Requirements of the Point of Loading

5.5.1.1 TheSellershallexerciseduediligencetoprovideasafeplacefortheRoadTanker/Railcartoloadthe Cargo.

5.5.1.2 ThePointofLoadingprovidedfortheRoadTanker/Railcarshallalwaysbefreeofchargesfornormal cargotransfer.

5.5.2 Time allowed for loading

5.5.2.1 ThetimeallowedtotheSellerforloadingtheCargoshallbeasagreedbetweenthePartiesintheSpecial Conditions.

2011 version 1.0 37

DEL

IVER

Y T

ERM

S -

FCA

, CPT

, CIP

, DD

P

5.5.2.2 ThetimeallowedtotheSellershallcommencewhentheRoadTanker/Railcarismadeavailableto theSellerreadyforloadingandshallceasewhentheRoadTanker/RailcarismadeavailabletotheBuyer forcollectionordeparturefromtheTerminal.

5.5.2.3 TheBuyerwarrantsthattheRoadTanker/RailcarisabletoloadtheCargowithinthetimeallowedfor loading,providedloadingfacilitiespermit.AlltimelostasaresultoftheRoadTanker/Railcarbeingunable toloadtheCargoinaccordancewiththiswarrantyshallnotcountagainstthetimeallowedforloadingor, wheretheRoadTanker/Railcarisonexcesstime,astimeontheExcessTimeRate.

5.5.2.4 Thefollowingactivitiesshallnotcounttowardsthetimeallowedforloading: (a) cleaning,inspectingand/orinertingthetanksoftheRoadTanker/Railcar;

(b) repairsorsubstitutionoftheRoadTanker/Railcarduetobreakdown;

(c) delaysduetotheBuyer’sfailuretocomplywithanytermoftheAgreementincluding,butnot limitedto,anyrequirementsoftheTerminal;and/or

(d) anydelaywhatsoeverattributabletotheRoadTanker/Railcar.

5.5.3 Excess Time

5.5.3.1 WhereanExcessTimeRateisspecifiedintheSpecialConditionsandthetimeallowedforloadingis exceeded,thentheSellershallpaytheBuyerinrespectoftheexcesstime.

5.5.3.2 Eachexcesstimeclaimshallbesubmittedinwriting,togetherwithallsupportingdocuments.Innoevent shalltheSellerbeliableforanexcesstimeclaimwheresuchclaimwithallsupportingdocumentsisnot receivedbytheSellerinwritingandwithin21DaysofthedateoftheCompletionofLoading.Forthe purposeofthisArticle5.5.3.2,theCompletionofLoadingdateshallcountasdayone.WheretheBuyer failstopresentaclaim,togetherwithsupportingdocumentation,withintheaforesaidlimit,thenany liabilityoftheSellerforexcesstimeshallbeextinguished.

5.5.3.3 AnexcesstimeclaimwhichissubmittedinaccordancewithArticle5.5.3.2andwhichisnotdisputed bytheSellershallbepaidbytheSellertotheBuyerwithin30DaysfromthedateoftheBuyer’sinvoice. Wherepaymentisnotmadewithinsuchduedate,interestonoverduepaymentshallbepayablein accordancewithArticle12.2.4.

2011 version 1.0 38

DEL

IVER

Y T

ERM

S -

FCA

, CPT

, CIP

, DD

P

ARTICLE 6. CARRIAGE AND INSURANCE PAID TO (CIP) AND CARRIAGE PAID TO (CPT)

6.1 Risk and titleNotwithstandinganyrightoftheSellertoretainthedocumentsreferredtoinArticle12.2.1riskandtitletotheCargoshallpassfromtheSellertotheBuyeratthePointofLoadingastheCargopassestheinletmanifoldoftheSeller’sRoadTanker/Railcarinquestionor,whereloadingbygravityfedtoploading,astheCargopassestheoutletoftheTerminal’sloadinghose.


6.2.1 DeterminationofthequantityandthequalityoftheCargoshallbecarriedoutbymeasuring,sampling andtestinginaccordancewiththestandardpracticeinuseatthePointofLoadingatthetimeofloading.

6.2.2 ThequantityoftheCargodeterminedpursuanttoArticle6.2.1(or,whereapplicable,theSpecial Conditions)shallbeinsertedinthecertificateofquantityand/ortheConsignmentNote(s)fortheCargoin accordancewithstandardpracticeinuseatthePointofLoadingatthetimeofloadingandthatquantity shallbeusedtocalculatetheSeller’sinvoice.

6.2.3 WheretheSpecialConditionsprovidefortheappointmentofanIndependentInspectoratthePointof Loading,thequantityand/orthequalityoftheCargoasascertainedorwitnessedbysuchIndependent Inspectorshall,exceptforfraudormanifesterror,befinalandbindingonbothParties.Thecostofthe IndependentInspector’sservicesshallbesharedequallybetweentheParties.

6.2.4 WheredeterminationofquantityandqualityoftheCargopursuanttoArticle6.2.1toArticle6.2.3doesnot takeplace,thequantityandqualityoftheCargoprovidedatthepermanenthoseconnectionoftheRoad Tanker/Railcarshallbeasthatstatedinthecertificatesofquantityandqualitysoissued.

6.2.5 AnydocumentsissuedstatingthequantityandqualitydeliveredinaccordancewiththisArticle6.2shall befinalandbindingonbothPartiesforallpurposes,savefraudormanifesterror.

6.3 Requirements for the Road Tanker/Railcar TheRoadTanker/Railcarshallcomplywithallapplicablegovernmentalandlocalauthoritylawsand/orregulations,andStatoil’srequirementsofwhatevernatureinforceatthePointofDestination.WheretheRoadTanker/RailcardoesnotcomplywithsuchrequirementstheBuyermayrefusetounloadtheRoadTanker/Railcarinquestion.

6.4 Nomination of the Road Tanker/Railcar

6.4.1 Nominationsoftransportationshall,whereanysuchprocedureisagreedtobeconducted,bemadein accordancewiththestandardoperatingproceduresoftherelevantTerminalatthePointofDestination.

6.4.2 AnydelaysinunloadingtheCargocausedbytheBuyer’sfailuretonominateorprovideanynecessary documentsforimportationorunloadingtheCargowillbefortheBuyer’saccount.TheBuyershall indemnifytheSellerforallcosts,lossesanddamagesincluding,butnotlimitedto,allcostsrelatedto excesstimeand/ordetentionincurredbytheSellerasaresultthereof.

6.5 The Port of Destination

6.5.1 Requirements of the Point of Destination

6.5.1.1 TheBuyershallprovideasafeplaceatthePointofDestinationfortheRoadTanker/Railcarwhichthe RoadTanker/Railcarcanproceedto,arriveat,unloadtheCargoat,anddepartfrom.

2011 version 1.0 39

DEL

IVER

Y T

ERM

S -

FCA

, CPT

, CIP

, DD

P

6.5.1.2 ThesafeplaceatthePointofDestinationprovidedfortheRoadTanker/Railcarshallalwaysbefreeofall chargesfornormalcargotransfer.AnyadditionalcoststhatoccursubsequenttotheDealExecutionDate shallbefortheaccountoftheBuyer.

6.5.2 Time allowed for unloading

6.5.2.1 ThetimeallowedtotheBuyerforunloadingtheCargoshallbeasagreedbetweenthePartiesinthe SpecialConditions.

6.5.2.2 ThetimeallowedtotheBuyershallcommencewhentheRoadTanker/Railcarismadeavailabletothe BuyeratthePointofDestinationreadyforunloadingandshallceasewhentheRoadTanker/Railcaris unloadedandmadeavailabletotheSellerforcollectionatthesameplace

6.5.2.3 Thefollowingactivitiesshallnotcounttowardsthetimeallowedforunloading: (a) repairsorsubstitutionoftheRoadTanker/Railcarduetobreakdown;and/or

(b) delaysduetotheSeller’sfailuretocomplywithanytermoftheAgreementincluding,butnot limitedto,anyrequirementsoftheTerminal.

6.5.3 Excess Time

6.5.3.1 WhereanExcessTimeRateisspecifiedintheSpecialConditionsandthetimeallowedforloadingis exceeded,thentheBuyershallpaytheSellerinrespectoftheexcesstime.

6.5.3.2 Eachexcesstimeclaimshallbesubmittedinwriting,togetherwithallsupportingdocuments.

6.5.3.3 AnexcesstimeclaimwhichissubmittedasstatedinArticle6.5.3.2andnotdisputedbytheBuyershall bepaidbytheBuyertotheSellerwithin30DaysfromthedateoftheSeller’sinvoice.Wherepaymentis notmadewithinsuchduedate,interestonoverduepaymentshallbepayableinaccordancewithArticle 12.2.4.

6.6 Insurance AnycargoinsurancetobeprocuredundertheAgreementshallbesubjecttoNorwegianCargoClauses(A),InstituteCargoClauses(A),theInstituteBulkOilClausesoranyothertermswhichprovidethesameorgreaterlevelsofcoverage,whichfortheavoidanceofdoubtshallexcludewarrisk,strikes,riotsandcivilcommotionsrisksinrespectoftheCargo.ThecargoinsuranceprocuredpursuanttothisArticle6.6shallbeunderwrittenbyafirstclassinsurer(s)tothefullvalueoftheCargoplus10%subjecttoadeductibleof0.5%ofthefullvalueoftheCargo.Theinsuranceandtherighttoclaimunderitshallbefullyassignableto,orby,theSelleroritsorder.

2011 version 1.0 40

DEL

IVER

Y T

ERM

S -

FCA

, CPT

, CIP

, DD

P

ARTICLE 7. DELIVERED DUTY PAID (DDP)

7.1 Risk and titleNotwithstandinganyrightoftheSellertoretainthedocumentsreferredtoinArticle12.2.1,theriskandtitletotheCargoshallpassfromtheSellertotheBuyer:(a) wheredeliveryisbyRoadTanker,whentheRoadTankerarrivesatthePointofDestination;and

(b) wheredeliveryisbyRailcar,whenthelocomotiveisdisconnectedfromtheRailcaratthePointof Destination.


7.2.1 WheredeliveryisbyRoadTanker/Railcar,thedeterminationofthequantityandqualityshallbecarried outbymeasurement,samplingandtestingatsuchplaceandbysuchmethodasagreedbetweenthe PartiesintheSpecialConditions.

7.2.2 WheredeliveryisbyRailcar,thebindingquantityfigureshallbethequantitystatedintherailwaybills.

7.2.3 AnydocumentsissuedstatingthequantityandqualitydeliveredinaccordancewiththisArticle7.2shall befinalandbindingonbothPartiesforallpurposes,savefraudormanifesterror.

7.3 Requirements for the Road Tanker/Railcar TheRoadTanker/Railcarshallcomplywithallapplicablegovernmentalandlocalauthoritylawsand/orregulations,andStatoil’srequirementsofwhatevernatureinforceatthePointofDestination.WheretheRoadTanker/RailcardoesnotcomplywithsuchrequirementstheBuyermayrefusetounloadtheRoadTanker/Railcarinquestion.

7.4 Nomination of the Road Tanker/Railcar

7.4.1 Notice of nomination

TheSellershallgiveaNoticetotheBuyeroftheRoadTanker/RailcarwhichistoDelivertheCargo(“thenomination”).Thenominationshallspecify:(a) thequalityandapproximatequantitytobeDelivered;and

(b) suchotherinformationasmayberequiredbythePointofDestination.

7.4.2 Acceptance/rejection of nomination and the Buyer’s instructions

7.4.2.1 ThenominatedRoadTanker/RailcarshallbesubjecttotheBuyer’sacceptancewhichshallnot beunreasonablywithheld.TheBuyershallprovidetheSellerwithaNoticeofacceptanceorrejectionof thenominatedRoadTanker/RailcarwithinoneWorkingDayofreceiptofthenomination.

7.4.2.2 AnyNoticeofrejectionshallstatethespecificreason(s)fortheBuyer’srejectionsothattheSellermay takereasonablecorrectiveaction(s),includingmakingafurthernomination,withoutprejudiceasto whethertheBuyer’srejectionisreasonableornot.

2011 version 1.0 41

DEL

IVER

Y T

ERM

S -

FCA

, CPT

, CIP

, DD

P


7.4.3.1 UnlessotherwisestatedintheSpecialConditions,theBuyershallnotifytheSellerwithinoneWorking DayoftheBuyer’sreceiptoftheSeller’snominationstatedinArticle7.4.1,of: (a) allinstructionsregardingthecustomarydocumentationwhichmayberequiredatthePointof Destination;and

(b) thePointofDestination(s),unlessalreadyspecifiedintheSpecialConditions,withinstructionsto enabletheRoadTanker/Railcartoprepareandsubmitnecessaryinformationtothecustomor borderauthoritiesoftheTerminal(s)specifiedinatimelyfashionsoastoenablecompliancewith theregulatoryrequirementsasmaybeapplicableatthePointofDestination.

7.4.3.2 AnydelaysinunloadingtheCargocausedbytheBuyer’sfailuretonominateorprovideanynecessary documentsfortheimportationoftheCargoatthePortofDestinationwillbefortheBuyer’saccount.The BuyershallindemnifytheSellerforallcosts,lossesanddamages,including,butnotlimitedto,excess timeand/ordetentionincurredbytheSellerasaresultthereof.

7.5 Point of Destination

7.5.1 Requirements of the Point of Destination

7.5.1.1 TheBuyershallprovideasafeplacefortheRoadTanker/RailcarwhichtheRoadTanker/Railcarcan proceedto,arriveat,DelivertheCargoat,anddepartfrom.

7.5.1.2 ThePointofDestinationprovidedfortheRoadTanker/Railcarshallalwaysbefreeofallchargesfor normalcargotransfer.AnyadditionalcoststhatoccursubsequenttotheDealExecutionDateshallbefor theaccountoftheBuyer.

7.5.2 Time allowed for unloading

7.5.2.1 ThetimeallowedtotheBuyertounloadtheCargoshallbeasagreedbetweenthePartiesintheSpecial Conditions.ThetimeallowedforunloadingshallstartwhentheRoadTanker/Railcarismadeavailableto theBuyerattheagreedPointofDestinationandshallceasewhentheRoadTanker/Railcarismade availabletotheSellerforcollectionatthesameplace.

7.5.2.2 Thefollowingactivitiesshallnotcounttowardsthetimeallowedforunloading: (a) repairsorsubstitutionoftheRoadTanker/Railcarduetobreakdown;and/or

(b) delaysduetotheSeller’sfailuretocomplywithanytermoftheAgreementincluding,butnot limitedto,anyrequirementsoftheTerminal.

7.5.3 Excess Time (Railcar)

7.5.3.1 WherethetimeallowedforunloadingtheRailcarisexceeded,theBuyershallpaytheExcessTimeRate totheBuyerasspecifiedintheSpecialConditions.WherenosuchExcessTimeRateisspecified,the ExcessTimeRateshallbeequivalenttothedailyratepaidbytheSellerfortherespectiveRailcar.

7.5.3.2 WherenosuchExcessTimeRateisstatedoradailyrateisnotapplicable,theExcessTimeRateshall bedeterminedtoreflectthemarketratesatthetimeoftheDelivery.Whendeterminingsuchmarketrate thefollowingshallbetakenintoconsiderationtotheextentapplicablefortherespectiveRailcar: (a) arailcarofsimilarsizeandtypeastheRailcarusedforthetransportorstorageoftheCargo;

(b) thetransportfromthePointofLoadingtothePointofDestinationspecifiedintheSpecial Conditions;and

(c) thequantityoftheCargo.


2011 version 1.0 42

DEL

IVER

Y T

ERM

S -

FCA

, CPT

, CIP

, DD

P

7.5.3.4 AnexcesstimeclaimwhichissubmittedasstatedinArticle7.5.3.3andisnotdisputedbytheBuyershall bepaidbytheBuyertotheSellernotlaterthan30DaysfromthedateoftheSeller’sinvoice.Where paymenthasnotbeenmadewithinsuchduedate,interestonoverduepaymentshallbepayablein accordancewithArticle12.2.4.

7.5.4 Excess Time (Road Tanker)

7.5.4.1 WhereanExcessTimeRateisspecifiedintheSpecialConditionsandthetimeallowedforunloadinga RoadTankerisexceeded,thentheBuyershallpaytheSellerinrespectoftheexcesstime.


7.5.4.3 AnexcesstimeclaimwhichissubmittedasstatedinArticle7.5.4.2andnotdisputedbytheBuyershall bepaidbytheBuyertotheSellernotlaterthan30DaysfromthedateoftheSeller’sinvoice.Where paymenthasnotbeenmadewithinsuchduedate,interestonoverduepaymentshallbepayablein accordancewithArticle12.2.4.

7.6 DutiesTheSellershallprocurecustomclearanceoftheCargouponimportationandthepriceagreedshallbedeemedtoincludeanydutypayableuponimportationatthePointofDestination.

2011 version 1.0 43

DEL

IVER

Y T

ERM

S -

EX T

AN

K, I

NT

O T

AN

K, I

TT,

FIP

, EX

P

ARTICLE 8. DELIVERED OUT OF TANK (EX TANK)

8.1 Risk and titleNotwithstandinganyrightoftheSellertoretainthedocumentsreferredtoinArticle12.2.1,riskandtitletotheCargoshallpassfromtheSellertotheBuyeratthePointofLoadingastheCargopassestheoutletflangeoftheSeller’sstorageTank.


8.2.1 Determinationofthequantityandthetakingofsamplesforthepurposeofdeterminingqualityofthe CargoshallbecarriedoutinaccordancewiththestandardpracticeinuseatthePointofLoadingatthe timeoftheDelivery.

8.2.2 ThequantityoftheCargodeterminedpursuanttoArticle8.2.1(orwhereapplicable,theSpecial Conditions)shallbeinsertedinthecertificateofquantityandanyConsignmentNote(s)fortheCargoin accordancewithstandardpracticeinuseatthePointofLoadingatthetimeoftheDeliveryandthat quantityshallbeusedtocalculatetheSeller’sinvoice.

8.2.3 WheretheSpecialConditionsprovidefortheappointmentofanIndependentInspectoratthePointof Loading,thequantityand/orthequalityoftheCargoasascertainedorwitnessedbysuchIndependent Inspectorshall,exceptforfraudormanifesterror,befinalandbindingforallpurposesonbothParties. ThecostoftheIndependentInspector’sservicesshallbesharedequallybetweentheParties.

8.2.4 WheredeterminationofquantityandqualityoftheCargopursuanttoArticle8.2.1toArticle8.2.3does nottakeplace,anydocumentsissuedinconnectionwiththeDeliverystatingthequantityandqualityof theCargoshallbeconclusiveandbindingonbothPartiesforinvoicingpurposes.TheBuyershallbe obligedtomakepaymentinfullinaccordancewithArticle12.2butwithoutprejudicetotherightsofeither PartytomakeanyclaimspursuanttoArticle14.

8.3 Requirements for the Means of Transport TheMeansofTransportdesignatedforreceivingtheCargoshallcomplywithallapplicablegovernmental,local,lawsand/orregulations,inforceatthePointofLoadingandregulationsandrequirementsofwhatevernatureasdetailed.WheretheMeansofTransportdoesnotcomplywithsuchrequirementstheSellermayrefusetheMeansofTransportinquestion.

8.4 Nomination of the Means of Transport

8.4.1 NominationsoftheMeansofTransportshallbemadeinaccordancewiththestandardoperating proceduresoftherelevantPointofLoading.

8.4.2 AnydelaysindeliveringtheCargocausedbytheBuyer’sfailuretoprovidethedocumentsnecessaryfor thedeliveryoftheCargowillbefortheBuyer’saccount.TheBuyershallindemnifytheSellerforall costs,lossesanddamages,includingbutnotlimitedtopenalties,feesand/ordetentionincurredasa resultthereof.

2011 version 1.0 44

ARTICLE 9. DELIVERED INTO TANK (INTO TANK)

9.1 Risk and titleNotwithstandinganyrightoftheSellertoretainthedocumentsreferredtoinArticle12.2.1,theriskandtitletotheCargoshallpassfromtheSellertotheBuyeratthePointofDestinationastheCargopassestheinletflangeoftheBuyer’sstorageTank.


9.2.1 ThedeterminationofthequantityandqualityshallbeperformedatthePointofDestinationasagreed betweenthePartiesintheSpecialConditions.

9.2.2 IntheabsenceofsuchagreementasdescribedunderArticle9.2.1,thedeterminationofthequantity andqualityshallbeperformedatthePointofDestinationinaccordancewiththeapprovedindustry practiceandstandardpracticeinuseatthePointofDestination.

9.2.3 AmutuallyagreedIndependentInspectorshallbeappointedtoascertainorwitnessthedetermination ofquantityandqualityoftheCargoorthereadingsasthecasemaybe.ThecostoftheIndependent Inspector’sservicesshallbesharedequallybetweentheParties.

9.2.4 Forthepurposeofqualitydetermination,theIndependentInspectorwilldrawcompositerepresentative samplesfromthedeliveringMeansofTransportorTankpriortotheDelivery.

9.2.5 AnydocumentsissuedstatingthequantityandqualitydeliveredinaccordancewiththisArticle9.2shall beconclusiveandbindingonbothPartiesforallpurposes,savefraudormanifesterror.

9.3 Requirements for the Means of Transport TheMeansofTransportdesignatedfordeliveringtheCargoshallcomplywithallapplicablegovernmental,local,lawsand/orregulations,inforceatthePointofDestinationandregulationsandrequirementsofwhatevernatureasdetailed.

9.4 Nomination of the Means of Transport

9.4.1 NominationsoftheMeansofTransportshallbemadeinaccordancewiththestandardoperating proceduresoftherelevantPointofDestination.

9.4.2 AnydelaysintheDeliveryoftheCargocausedbytheSeller’sfailuretoprovidethedocumentsnecessary fortheDeliveryoftheCargowillbefortheSeller’saccount.TheSellershallindemnifytheBuyerfor allcosts,lossesanddamages,includingbutnotlimitedtopenalties,feesand/ordetentionincurredasa resultthereof.

DEL

IVER

Y T

ERM

S -

EX T

AN

K, I

NT

O T

AN

K, I

TT,

FIP

, EX

P

2011 version 1.0 45

ARTICLE 10. IN TANK TRANSFER (ITT)

10.1 Risk and titleNotwithstandinganyrightoftheSellertoretainthedocumentsreferredtoinArticle12.2.1theriskandtitletotheCargoshallpassfromtheSellertotheBuyeratthetimeandplaceoftheDeliveryandinsuchTank(s)asspecifiedintheSpecialConditions.


10.2.1 ThedeterminationofthequantityandqualityshallbeperformedattheplaceoftheDeliveryspecifiedin theSpecialConditions.

10.2.2 IntheabsenceofsuchagreementasdescribedunderArticle10.2.1,thedeterminationofthequantityand qualityshallbeperformedattheplaceoftheDeliveryspecifiedintheSpecialConditionsinaccordance withtheapprovedindustrypracticeandstandardpracticeinuseatsuchplace.


10.2.4 AnydocumentsissuedstatingthequantityandqualityDeliveredinaccordancewiththisArticle10.2shall beconclusiveandbindingonbothPartiesforallpurposes,savefraudormanifesterror.

DEL

IVER

Y T

ERM

S -

EX T

AN

K, I

NT

O T

AN

K, I

TT,

FIP

, EX

P

2011 version 1.0 46

ARTICLE 11. FREE INTO PIPE (FIP) OR EX-PIPE (EXP)

11.1 Risk and titleNotwithstandinganyrightoftheSellertoretainthedocumentsreferredtoinArticle12.2.1,theriskandtitletotheCargoshallpassfromtheSellertotheBuyerattheplaceofdeliveryasspecifiedintheSpecialConditions:(a) wherethedeliveryisFIP,astheCargopassestheinletflangeoftheBuyer’sPipeline;

(b) wherethedeliveryisEXP,astheCargopassestheoutletflangeoftheSeller’sPipeline.


11.2.1 ThedeterminationofthequantityandqualityshallbeperformedattheplaceoftheDeliveryspecifiedin theSpecialConditions.

11.2.2 IntheabsenceofsuchagreementasdescribedinArticle11.2.1,thedeterminationofthequantityand qualityshallbeperformedattheplaceoftheDeliveryspecifiedintheSpecialConditionsinaccordance withthestandardpracticeinuseatsuchplace.


11.2.4 Forthepurposeofqualitydetermination,theIndependentInspectorwilldrawlineortankcomposite representativesamplespriortocommencementoftheDeliveryfromtheMeansofTransport.

11.2.5 AnydocumentsissuedstatingthequantityandqualityDeliveredinaccordancewiththisArticle11.2shall beconclusiveandbindingonbothPartiesforallpurposes,savefraudormanifesterror.

11.3 Requirements for the PipelineThePipelinedesignatedforreceivingtheCargoshallcomplywithallapplicablegovernmental,local,lawsand/orregulations,inforceattheplaceoftheDeliveryandregulationsandrequirementsofwhatevernatureasdetailed.WherethePipelinedoesnotcomplywithsuchrequirementstheSellerortheBuyer(asthecasemaybe)mayrefusetoDelivermakedeliveryoftheCargo.

11.4 Nominations of transportation

11.4.1 Nominationsoftransportationshallbemadeinaccordancewiththestandardoperatingproceduresatthe relevantplaceoftheDelivery.

11.4.2 AnydelaysintheDeliveryoftheCargocausedbyaParty’sfailuretoprovidethedocumentsnecessary fortheDeliveryoftheCargowillbeforsuchfailingParty’saccount.ThefailingPartyshallindemnifythe otherPartyforallcosts,lossesanddamages,includingbutnotlimitedtopenalties,feesand/ordetention incurredasaresultthereof.

11.5 Requirements of the place of the Delivery

11.5.1 WherethedeliveryisFIP,theBuyershallprovidesafeaccesstothereceivingPipelinesysteminorderto allowtheSellertoDelivertheCargo.

11.5.2 TheplaceoftheDeliveryprovidedbytheBuyershallalwaysbefreeofallchargesfornormalcargo transfer.AnyadditionalcoststhatoccursubsequenttotheDealExecutionDateshallbefortheaccountof theBuyer.

DEL

IVER

Y T

ERM

S -

EX T

AN

K, I

NT

O T

AN

K, I

TT,

FIP

, EX

P

2011 version 1.0 47

General termsSECTION III

2011 version 1.0 48

GN

ERA

L T

ERM

S

ARTICLE 12. SETTLEMENT

12.1 Credit

12.1.1 NotwithstandinganyprovisionregardingpaymentsecurityintheSpecialConditions,theSellermay,at anytime,notifytheBuyerthattheSellerrequirestheBuyertoprovidesecurityforthepaymentorfurther securityintheformof: (a) anirrevocableStandbyLetterofCredit(“StandbyL/C”)openedandadvisedorconfirmedbya firstclassinternationalbankorbanksacceptabletotheSeller,whichshall: (i) beintheformatandtermsasstatedinSchedule2; (ii) besufficienttocovertheSeller’sestimatedvalueoftheCargoplus10%;and (iii) remainvalidforatleast21Daysaftertheestimatedpaymentduedate;or

(b) pre-paymentfortheCargoinwholeorinpartattheSeller’sdiscretionatanytimebeforethe DeliverytotheBuyerordischargeoftheMeansofTransport.Suchpre-paymentshallbemade uponpresentationoftheSeller’sprovisionalinvoicebasedontheSeller’sestimatedvalueofthe Cargoplus10%;or

(c) suchothersecurityforpaymentwhichtheSeller,initssoleandabsolutediscretionandatany time,findsacceptable.

12.1.2 WheretheSpecialConditionsrequireortheSellerrequestsanirrevocableStandbyL/Cbeopenedand/or confirmedinaccordancewithArticle12.1.1,suchStandbyL/Cshallbesoadvisedorconfirmedbyno laterthanthedateandtime: (a) asspecifiedintheSpecialConditions;or

(b) asspecifiedintheSeller’sNoticepursuanttoArticle12.1.1;or

(c) wherethedateandtimeisnotspecifiedintheSpecialConditionsorintheSeller’sNotice,byno laterthan: (i) 12.00GMTonthedatefallingfiveBankingDayspriortothefirstdayoftheDelivery DateRange;or (ii) wheretheCargoisalreadyloadedwhentheStandbyL/Cisrequested,oneBankingDay aftertheSeller’srequestorbeforedischargecommences,whicheveristheearliest;or (iii) wherethedeliveryisDAP,12.00GMTonthedatefallingfiveBankingDayspriortothe firstdayofeitherthedateofloadingoftheCargoortheDeliveryDateRange,whichever istheearliest;or (iv) wherethedeliveryisFCA,CPT,CIP,EXTank,INTOTANK,ITT,FIPorEXP,12.00GMT onthedatefallingfiveBankingDayspriortotheexpecteddateoftheDeliveryofthe Product.

12.1.3 ItisaconditionoftheAgreementthattheBuyercomplieswithallitsobligationsunderArticle12.Any failurebytheBuyertocomplywithanyofitsobligationsunderArticle12shallbeabreachofacondition oftheAgreement,andtheSellermay,atitsabsolutediscretion,andinadditiontoandwithoutprejudiceto anyotherrightsitmayhaveinlaworundertheAgreement,decideatanytimeto: (a) canceltheDeliveryoftheCargo;and/or

(b) withholdorsuspendtheDeliveryorloading,dischargingorunloadingoftheCargo;;and/or

2011 version 1.0 49

GN

ERA

L T

ERM

S

(c) withholdreleaseoftheConsignmentNotes,shippingdocumentsorletter(s)ofindemnity;and/or

(d) declarethattitle(butnotrisk)intheCargoshallberetainedby,orre-vestin,theSeller.Where theSellersodeclaresorordersunderthisArticle12.1.3,titleintheCargoshallnotpasstothe Buyerand,wherealreadypassedtotheBuyer,shallre-vestintheSelleruponsuchNoticebeing givenbytheSeller.TheCargoshallremainattheBuyer’sriskinaccordancewiththeAgreement untiltheSellergivesNoticethatthisisnolongerthecase;and/or (e) insistontheBuyerdischargingtheMeansofTransportexclusivelytoanentitynotifiedtothe BuyerbytheSeller.

12.1.4 Article12.1.3isentirelywithoutprejudicetoanyotherrightsorlegalremediestheSellermayhave,and theSellershallnotbeliabletotheBuyerforanycosts,lossesand/ordamages(includingliabilitiesto thirdparties)incurredbytheBuyerasaresultofanysuchstepstheSellermaytake.TheSellermay exercisetherightsstatedinArticle12.1.3whetherornotnominationshavebeenmadeoraccepted. WheretheSellerexercisesanysuchright,theSellershallbeentitledtodisposefreelyofanyresulting quantityoftheProductandtheBuyershallbeliablefor,andshallindemnifytheSellerforanycosts, lossesand/ordamagesincurredbytheSeller.TheBuyer’sliabilityincludes,butisnotlimitedto, anydemurrageorexcesstimepayablebytheSellerinrespectoftheMeansofTransportorothermeans oftransport(s)waitingattheTerminaland/oranyliabilityincurredbytheSellerfromthirdpartiesasa resultthereof.

12.1.5 AllbankchargesrelatingtoanyStandbyL/Corothersecurityandanyotherfees,commissions,costsand expensesincurredwithrespecttoprovidingsecurityarefortheBuyer’saccount,saveforthosecharges statedinSchedule2asbeingfortheSeller’saccount.

12.1.6 Notwithstandingtheprovisionofsecurityforthetransaction,theBuyerwillremainresponsibleforpayment intheeventthatpaymentisnotmadeunderthesecurityforanyreasonwhatsoever.

12.2 PaymentAnypaymentfortheCargoshallbemade,withoutdeduction,discount,setofforcounterclaims,andunlessotherwisespecifiedintheSpecialConditions,inimmediately-availablesamedayfundsbytelegraphictransfertotheSeller’sbankaccountinthecurrency,andbythedateofpayment,specifiedintheSpecialConditions.

12.2.1 Payment documents

ExceptasexpresslyprovidedelsewhereintheAgreement,paymentshallbemadebytheBuyeragainstthepresentationoftheSeller’scommercialinvoice(provisionalinvoiceisacceptablewheretheprovisionsofArticle12.2.3.3apply)andthefollowingdocuments:(a) WheredeliveriesareFOB,CIF,CFR,CIFOutturnorCFROutturn: (i) originalcertificatesofquantityandqualityor,wherenosuchcertificatesareissued,reasonable equivalentdocumentsissuedatthePortofLoading;

(ii) acompletesetoforiginalbillsofladingissuedorendorsedtotheorderoftheBuyer;

(iii) forCIForCIFOutturndeliveries,theoriginalCertificateofInsuranceorinsurancecompany’s covernoteorwheretheCargoisself-insuredbytheSeller,evidenceofsuchselfinsurance,in accordancewiththetermsoftheAgreement;

(iv) forCIFOutturnorCFROutturndeliveries,anyquantitymeasurementreportissuedatthePort ofDestinationpursuanttoArticle4.2.

(b) WheredeliveriesareDAP: (i) acopyofthereportissuedbytheIndependentInspectoratthePortofDestinationpursuantto Article4.2.

2011 version 1.0 50

GN

ERA

L T

ERM

S

(c) WheredeliveriesareFCA,CPT,CIPorDDP: (i) theoriginalConsignmentNoteissuedtotheBuyerorendorsedtotheorderoftheBuyer evidencingthecarriageoftheCargoinaccordancewithstandardpracticefortherelevantMeans ofTransportandtheDeliverytermor,intheabsenceofsuchConsignmentNote,duetolocal laws,regulationsorestablishedprocedures,othercontractdocumentsevidencingthecarriageof theCargo; (ii) originalcertificatesofquantity,qualityorwherenosuchcertificatesareissued,equivalent documentsissuedatthePointofDestination;and (iii) forCIPdeliveries,theoriginalCertificateofInsuranceorinsurancecompany’scovernoteor wheretheCargoisself-insuredbytheSeller,evidenceofsuchself-insurance,inaccordance withthetermsoftheAgreement.

(d) WheredeliveriesareExTank,IntoTank,ITT,EXPorFIP: (i) originalcertificatesofquantity,qualityorwherenosuchcertificatesareissued,reasonable equivalentdocumentsissuedatthePointofDestination;and

(ii) theoriginalConsignmentNote,ortheoriginalrelevantreceiptsordocumentsthatareissuedby thePointofDestinationtotheBuyerorendorsedtotheorderoftheBuyerevidencingthe carriage,thechangeofownershiporthereceiptoftheCargoasthecasemaybe.

12.2.2 Seller’s Indemnity in place of unavailable documents

WhereanyofthedocumentsreferredtoinArticle12.2.1arenotavailabletotheSellerforpresentationtotheBuyeronorbeforethepaymentduedate,theBuyeragreestopaytheSelleruponpresentationtotheBuyerof:(a) theSeller’scommercialinvoice(aprovisionalinvoiceisacceptablewheretheprovisionsof Article12.2.3.3apply);and

(b) theSeller’sexecutedletterofindemnity(LOI)intheformatstatedinSchedule1presentedinthe formofatelefax/telecopyoraPDFfilee-mailattachment.

12.2.3 Invoice

12.2.3.1TheSeller’sinvoiceshallbepresentedintheformofahardcopy,sentbypost,mailorcourier,orafaxor aPDFfilee-mailattachment.

12.2.3.2TheSeller’sinvoiceshallbebasedontheagreedpricingformulastipulatedintheSpecialConditionsand theDeliveredquantityinaccordancewiththerelevantdocumentsissuedpursuanttotheAgreement.

12.2.3.3Whereitisnotpracticalorpossibletoissueafinalinvoicepriortotheduedateforpayment,theSeller mayissueandtheBuyershallmakepaymentagainst,aprovisionalinvoice.Unlessaprovisionalprice isagreedbetweentheParties,theSeller’sprovisionalinvoiceshallbebasedonaprovisionalprice reasonablyassessedbytheSeller,andwhereitisnecessarytoestimateaprovisionalvolume,a provisionalvolumeof99.8%oftheSeller’sassessmentofthevolumeDelivered.Paymentofanybalance duebyeitherPartyshallbemadeimmediatelyandlatestwithintwoBankingDaysofthedateofthe Seller’sfinalinvoice.Thefinalinvoiceshallbeissuedassoonaspracticableafterallrelevantpricingand/ orquantityinformationbecomesavailabletotheSeller.

12.2.3.4Unlessotherwiseagreed,thepaymentofanyothercosts,expensesorchargesdueundertheAgreement shallbemadeagainstpresentationofaninvoiceandshallbepaidonorbeforethedatespecifiedtherein or,wherenodateisspecified,immediately.

12.2.3.5WhereanypaymentduedatefallsonaSundayorabankholidayMondayinanyregionnecessary toeffectuatesubjectpayment,suchpaymentshallbemadeonthefirstBankingDayfollowingandwhere anypaymentfallsdueonaSaturdayoranyotherbankholidayinanyregionnecessarytoeffectuate subjectpayment,suchpaymentshallbemadeonthelastprecedingBankingDay.

2011 version 1.0 51

GN

ERA

L T

ERM

S

12.2.4 Interest

12.2.4.1Whereanypaymentsarenotmadeinfullbytheduedate,theBuyershallpaytotheSellerinterest calculatedattheBritishBankersAssociationLondonInterbankOfferedRate(“bbalibor”)forthreemonth USD(USdollar)aspublishedonThomsonReuterspage“USD3MFSR=”(oranysuccessorthereof)plus threepercentagepoints(LIBOR+3%points),onalloutstandingamountsfromtheduedatetothedate paymentisactuallyreceivedbytheSeller.

12.2.4.2InterestshallcontinuetoaccrueunderthisArticle12.2.4untilpaymentismadeinfull,notwithstandingthe terminationoftheAgreementforanycausewhatsoever.

12.2.4.3TheamountofinterestpayabletotheSellershallbegrossed-upforwithholdingtax,ifany,suchthatthe netamountofinterestreceivedbytheSellershallbeequaltothefullamountofinterestdueasifno withholdingtaxwerepayable.

12.2.4.4TheprovisionsofthisArticle12.2.4shallnotbeconstruedasanyagreementorwillingnessbytheSeller toextendcredittotheBuyerandarewithoutprejudicetoanyotherrightsorremediesoftheSellerunder theAgreementorinlaw.

2011 version 1.0 52

GN

ERA

L T

ERM

S

ARTICLE 13. DUTIES, TAXES AND OTHER GOVERNMENTAL CHARGES

13.1 TerminologyInthisArticle13:“Tax”and“Taxes”meansallcustoms,taxes,royalties,excises,fees,duties(including,butnotlimitedto,importduties),levies,salesandusetaxesandvalueaddedtaxes,chargesandallothersimilartaxesorassessments,whichmaynoworhereafterbeenacted,leviedorimposed,directlyorindirectly,byaGovernmentalAuthoritybutshallnotincludeanytaxesbasedonincome,revenues,grossreceiptsornetworthandallstatefranchise,licenceandsimilartaxesrequiredforthemaintenanceofcorporateexistencethatareassessedagainstaParty.

“OtherCharges”meansallfees,dues,leviesandcharges(includingbutnotlimitedtofeesandchargesimposedorleviedbyaGovernmentalAuthority)whatsoeverarisinginconnectionwiththeCargo,itssale,transportation,removal,ownership,theDelivery,exportorusebutshallnotincludeanychargetotaxfallingwithinthedefinitionof“Tax”and“Taxes”statedinthisArticle13.

“ApplicableLaw”meansanyapplicablenational,municipalorstatestatute,ordinanceorotherlaw(includinganyTaxlaw),regulation,by-law,code,orderordecree,anyformofdelegatedorsecondarylegislation,anytreatyorinternationalconvention,anyregulationordirectiveand,wherethecontextsopermits,anyagreement,licence,concessionorarrangementwithanyGovernmentalAuthority[and,forthepurposesofthisdefinition,“regulation”includesanyregulation,rule,officialdirective,requestorguideline(whetherornothavingtheforceoflaw)ofanygovernmental,intergovernmentalorsupranationalbody,agency,departmentorofanyregulatory,self-regulatoryorotherauthority(whetherornotaGovernmentalAuthority)ororganisationandaprovisionoflawisareferencetothatprovisionasamendedorre-enacted].

13.2 Taxes

13.2.1 ThepricespecifiedintheAgreement(whetherfixedintheAgreementoffixedpursuanttoapricing mechanismreferredtointheAgreement)isexclusiveofanyandallTaxes.

13.2.2 Where,andtotheextentthatTaxesarepayableandtheSellerisrequiredinaccordancewithApplicable Lawtopaythesame,theBuyershallpayanamountequaltotheamountofsuchTaxestotheSellerin additiontothepricesospecifiedandshallindemnifyandholdtheSellerharmlessinrespectofanysuch amountandagainstanyclaimmadeagainsttheSellerinrespectthereofandagainstanyloss,costor expensearisinginconnectiontherewithorasaconsequencethereofunlesssuchloss,costorexpense arisesasaresultofthewilfuldefaultorgrossnegligenceoftheSeller.

13.2.3 TheBuyermustpayallsumspayablebyitundertheAgreementfreeandclearofalldeductions orwithholdingsinrespectofTaxunlessanyApplicableLawrequiressuchadeductionorwithholdingto bemade.WheresuchadeductionorwithholdingissorequiredtheBuyershallpromptlyinformtheSeller ofthatrequirementandwillpaysuchadditionalamounttotheSelleraswillensurethatthenetamount receivedbytheSellerisequaltothefullamountthattheSellerwouldhavereceivedhadthedeductionor withholdingnotbeenrequired.

13.3 Other charges

13.3.1 NotwithstandinganyprovisionofApplicableLawtothecontrary,theSellershallberesponsibleand indemnifytheBuyerforthepaymentofanyOtherChargesarisingatthePortofLoadingorPointof Loading,asapplicable,andthatarisefromthesaleandtheDeliverytotheBuyeroftheCargountilthe stagewhenthetitlehaspassedtotheBuyer.

13.3.2 AllOtherChargesimposedontheCargoortheMeansofTransportafterthetitlehaspassedtotheBuyer (whennotincludedintheagreedfreightrates)shallbefortheBuyer’saccount.

2011 version 1.0 53

GN

ERA

L T

ERM

S

13.4 Invoicing and payment

13.4.1 WithoutprejudicetotheprovisionsofArticle13.3.1,paymentofanyTaxesand/orOtherChargesshallbe madetotheSellerinadditiontothepricespecifiedintheSpecialConditionsandinaccordancewith Article13.2.3.

13.4.2 TotheextentthatthereareTaxesand/orOtherChargesdueforpaymentthataredeterminableandhave beendeterminedonorimmediatelybeforetheinvoicedate,theinvoiceprovidedbytheSellertothe BuyeratthetimeofrequestforpaymentshallstatetheamountofthoseTaxesand/orOtherCharges.

13.4.3 TheinvoicemayberenderedineitherthelocalcurrencyofthecountryinwhichtheTaxesand/orOther chargesarepayableor,attheSeller’soption,intheinvoicingcurrencyfortheCargo,convertedatthe appropriateexchangerateprevailingonthedateofthetaxpointundertherelevantApplicableLaw.

13.5 Provision of information and documentation

13.5.1 ThenecessaryinformationanddocumentaryinstructionsrequiredtocomplywithEUoranynon-EUstate ofloading/dischargelawand/orregulationsorotherApplicableLawonTaxesmustbereceivedbythe SelleratleasttwoWorkingDayspriortotheCommencementofLoadingor-incaseofFIP,inTankorEx Tanksales-priortotheDelivery,unlessotherwiseagreedbytheSellerinwriting(suchinformationwill otherwisebedeemednottohavebeengivenforthepurposeofArticle13.5.

13.5.2 UponreceiptoftheSeller’srequest,theBuyershallprovidesuchdocumentation,forpresentationtoany relevantGovernmentalAuthoritythattheSellerreasonablyconsidersnecessaryinordertosatisfyany enquirymadebythatGovernmentalAuthorityinrelationtothetreatmentofthesaleoftheCargoforTax purposes.

13.5.3 UponreceiptoftheSeller’srequest,theBuyerwillprovideanofficialreceiptfromanysuchGovernmental AuthorityconfirmingthatthepaymentofanyTaxesand/orOtherCharges(asthecasemaybe)have beenpaid.

13.5.4 UponreceiptoftheBuyer’srequest,theSellershallprovidesuchdocumentationforpresentationtoany relevantGovernmentalAuthoritythattheBuyerreasonablyconsidersnecessaryinordertosatisfyany enquirymadebythatGovernmentalAuthorityinrelationtothetreatmentofthesaleoftheCargoforTax purposes.

13.6 Indemnification

13.6.1 Notwithstandinganythinghereintothecontrary,theBuyershallberesponsiblefor,indemnifyandhold theSellerharmlessfromandagainstanyandalldirectorindirectlosses,costs,expenses,penalties andinterestincurredbytheSellerasaresultoftheBuyer’sfailuretoprovidetheSellerwiththe informationanddocumentationreferredtointhisArticle13and/orasaresultoftheBuyer’sfailuretopay, ordelayinpaying,anyTaxesand/orOtherChargesinaccordancewiththeAgreement.

13.6.2 Notwithstandinganythinghereintothecontrary,theSellershallberesponsiblefor,indemnifyandholdthe Buyerharmlessfromandagainstany,andalldirectlosses,costs,expenses,penaltiesandinterest incurredbytheBuyerasaresultoftheSeller’sfailuretoprovidetheBuyerwiththeinformationand documentationreferredtointhisArticle13.

2011 version 1.0 54

GN

ERA

L T

ERM

S

ARTICLE 14. QUANTITY AND QUALITY

14.1 Quality

14.1.1 ThequalityoftheCargoDeliveredshallnotbeinferiortothespecificationstatedintheSpecial Conditions.

14.1.2 WheretheProductiscrudeoilorcondensate,thequalityoftheProductdeliveredshallbeofthequality ofsuchcrudeoilorcondensateasusuallymadeavailableatthetimeandPortofLoadingwhere deliveriesareFOB,CIForCFRandatthePortofDestinationwheredeliveriesareDAP.

14.1.3 WheretheProductisOffshoreLoadedCrude,theProductshallbeofthequalitythatisavailableatthe offshoreloadingfacilityatthetimeofloadingtheCargo.

14.1.4 WhetherstatedintheseGT&CsorintheSpecialConditions,neitherTypicalsnoranystipulationastothe timeoftheDeliveryshallformpartoftheProduct’sdescription,qualityorfitnessforpurpose.

14.1.5 ThisArticle14.1constitutesthewholeoftheSeller’sobligationswithrespecttothedescription,quality andfitnessforpurposeoftheProducttobeDeliveredand(savetotheextentthatexclusionthereofisnot permittedorisineffectivebyoperationoflaw)allstatutoryorotherconditionsorwarranties,expressor implied,withrespecttothedescriptionorsatisfactoryqualityoftheProductoritsfitnessforanyparticular purposeorotherwiseareherebyexcluded.

14.2 Claims in respect of quantity or quality

14.2.1 For Deliveries by the Vessel: FOB, CIF, CFR , CIF Outturn, CIF Outturn and DAP:

14.2.1.1AnyclaimastoshortageinquantityoftheCargoand/ordefectsinthequalityoftheCargoshallbemade byNoticetotheSellerimmediatelyaftersuchapparentshortageand/ordefectsarediscoveredatthePort ofLoadingorPortofDestination,asthecasemaybe.

14.2.1.2SuchNoticeshallbefollowedbyawrittenclaimtotheSellercontainingallthedetailsnecessaryto evaluatetheclaim.Whereawrittenclaimtogetherwithallsupportingdocumentsisnotreceivedbythe Sellerwithin50DaysaftertheCompletionofLoadingforFOB,CFRorCIFdeliveriesorwithin30Days aftertheCompletionofDischargeforCIFOutturn,CFRoutturnorDAPdeliveries,thentheclaimshallbe time-barredandanyliabilityorallegedliabilityoftheSellerundertheAgreementshallbeextinguished.

14.2.1.3Wherethedeliveriesarecrudeoil,anyclaimsinrespectofdeficiencyofquantityorvariationofgradeof thecrudeoilshallonlyberecoverableinaccordancewiththeusualtermsapplicabletothepurchase ofcrudeoilatthePortofLoadingandtheBuyershallnotbeentitledtorecoveranycosts,lossesor damagesarisingoutofanydeficiencyinquantityordefectinthequalityofthecrudeoilfromtheSeller undertheAgreementunlesstheSellerisabletorecoveranddoesrecoversuchshortageor compensationforvariationofgradefromitssupplierorotherrelevantthirdparty,andthenonlytothe extentofsuchrecovery.TheSellershall,however,useallreasonableeffortstorecoverfromits supplierorotherrelevantthirdpartyanycosts,lossesordamagesforwhichtheBuyerhassubmitteda claiminaccordancewiththeprovisionsofthisArticle14.2.

14.2.1.4WherethedeliveriesareCIFOutturnorDAP,notwithstandingtheprovisionsofArticle4.2,theSeller shallhavetherighttosubmitaclaimtotheBuyerwherethereisadifferencebetweenthequantity loadedanddischargedbytheVesselandwhere,intheSeller’sreasonableopinion,themostlikelycause ofsuchdifferenceisduetoeventsat,orthenatureofoperationsatthePortofDestination,duringthe dischargeoftheProduct.

2011 version 1.0 55

GN

ERA

L T

ERM

S

14.2.1.5NotwithstandinganyotherprovisionoftheAgreement,noclaimshallbeadmittedinrespectofany deficiencyofquantitywherethedifferencebetweentheloadedanddischargedquantityis0.3%ofthe loadedquantityorless.

14.2.2 For land-based deliveries FCA, CPT, CIP, DDP, Ex Tank, Into Tank, ITT, FIP and EXP

14.2.2.1Withoutprejudicetothefactthatthecertificatesofqualityandquantitymaybefinalandbinding,any claimastoshortageinthequantityoftheCargoand/ordefectsinthequalityoftheCargoshallbemade byNoticetotheSellerimmediatelyaftersuchapparentshortageand/ordefectsarediscoveredatthe placeoftheDelivery.

14.2.2.2SuchNoticeshallbefollowedbyawrittenclaimtotheSellercontainingallthedetailsnecessaryto evaluatetheclaim.Whereawrittenclaimtogetherwithallsupportingdocumentsisnotreceivedbythe Sellerwithin30DaysaftertheDeliverythentheclaimshallbetime-barredandanyliabilityoralleged liabilityoftheSellerundertheAgreementshallbeextinguished.

2011 version 1.0 56

GN

ERA

L T

ERM

S

ARTICLE 15. FORCE MAJEURE

15.1 Force Majeure EventsForthepurposesofthisArticle15,“ForceMajeureEvents”shallmeananycauseoreventbeyondaParty’sreasonablecontrol,including,butnotlimitedto,fires,earthquakes,lightning,floods,explosions,storms,adverseweather,landslidesandotheractsofnaturalcalamityoractsofGod;navigationalaccidentsormaritimeperil;piracy,Vesseldamageorloss;breakdownoftheVessel;strikes(includingsympathystrikes),grievances,actionsbyoramongworkersorlabourgroupsorlock-outs(whetherornotsuchlabourdifficultiescouldbesettledbyaccedingtoanydemandsofanysuchlabourgroup(s)orindividuals);accidentsat,closingof,orrestrictionsupontheuseofmooringfacilities,docks,harbours,ports,Terminals,pipelines,orothernavigationalortransportationmechanisms;explosionsoraccidentstowells,pipelines,storageplants,refineries,Terminals,machineryandotherfacilities;actsofwarorcivilwar(whetherdeclaredorundeclared),hostilities,civilcommotion,embargoes,blockades,terrorism,sabotage,riotsandrevolutionoractsofthepublicenemy;anyactoromissionofanydirectiveofanyGovernmentalAuthority;goodfaithcompliancewithanyorder,requestordirectiveofanyGovernmentalAuthority;failure,cessation,curtailment,reductionorinterferencewiththeProductsupplieswhetherlawfulornotfromtheSeller’sortheSeller’ssuppliers’sourcesoftheProduct,includinganyrefusalforanyreasonbytheSeller’ssupplierstosupplytheProduct,providedinfactthatthesourcesofsupplyareforthepurposeoftheAgreementoranyothercausereasonablybeyondthecontrolofaParty,whethersimilarordissimilartothoseaboveandwhetherforeseeableorunforeseeable,which,bytheexerciseofduediligence,suchPartycouldnothavebeenabletoavoidorovercome.

15.2 No liabilityNeithertheSellernortheBuyershallbeliableforafailuretoperformanyofitsobligationsundertheAgreement(otherthantheobligationofpaymentofmoneyorprovisionofsecuritystatedinArticle12)wheresuchperformancehasbeenprevented,hindered,delayedorcurtailedbyaForceMajeureEvent.Fortheavoidanceofdoubt,theBuyer’sliabilityforLaytimeandDemurrageshallnotbesubjecttoqualificationbytheoperationofArticle15.

15.3 Substitute purchaseNotwithstandingArticle15.2,theSellershallnotbeobligedtoacquiretheProductfromothersourcesorsuppliersortopurchaseproducttomakegoodshortagesordeficienciesordelaysintheDeliveryresultingfromaForceMajeureEvent.FortheavoidanceofdoubttheSellershallbefreetoallocateitsremainingavailabilityastheSelleratitsabsolutediscretionthinksfitandtheBuyershallbeobligedtoacceptandpayforanyProducttenderedfortheDeliveryeveniflessthanthefullagreedquantity.ShouldtheSellerthereafteracquireadditionalProductofthesamegradeandquality,theSellershallnotberequiredtoallocateanysuchProducttotheBuyer.

15.4 PaymentNothinginthisArticle15shallrelievetheBuyerofanyofitsaccruedobligationstomakepaymenttotheSellerundertheAgreementbytheduedateforsuchpayment.

15.5 Notification

15.5.1 ThePartyseekingreliefunderthisArticle15shallissueaNoticetotheotherPartyassoonasreasonably possibleupontheoccurrenceofaForceMajeureEvent.

15.5.2 ThePartyseekingreliefshallthereafterprovidetheotherPartywithinformationregarding(i)when itexpectstobeinapositiontoresumeperformanceoftheAgreement,(ii)thepossiblecessationofthe circumstancesreliedupononand(iii)thedatethattheForceMajeureEventisterminated.

15.5.3 FailureofaPartytocomplywiththerequirementsofArticle15.5.1andArticle15.5.2shallmakethefailing Partyresponsibleforlossanddamagesthatcouldotherwisehavereasonablybeenavoidedhadthe requirementsbeencompliedwith.

2011 version 1.0 57

GN

ERA

L T

ERM

S

15.6 Termination15.6.1 ThePartyseekingreliefofitsperformanceobligationunderthisArticle15shallresumesuchobligationas soonasreasonablypossibleafterthecircumstancesrelieduponhaveceased.

15.6.2 WheretheperiodofsuspensionoftheDeliveryduetoaForceMajeureEventshallcontinueformore than30consecutiveDaysfromthedatethatNoticeofsucheventisgiven,andsolongassucheventis continuing,eitherPartymayterminatesuchaffectedDeliveryupongivingNoticetotheotherPartyand neitherPartyshallhaveanyfurtherliabilitytotheotherPartyinrespectofsuchDeliveryexceptforthe rightsandremediespreviouslyaccrued.

2011 version 1.0 58

GN

ERA

L T

ERM

S

ARTICLE 16. NEW OR CHANGED REGULATIONS

16.1 TheBuyeracknowledgesandagreesthattheSellerisenteringintotheAgreementinrelianceonthe laws,rules,regulations,decrees,agreements,concessionsandarrangementsineffectonthedateofthe Agreementwithgovernments,governmentagenciesorinstrumentsorpublicauthorities(“Regulations”), affectingdirectlyorindirectlytheProductsoldundertheAgreement.SuchRegulationsinclude,butare notlimitedto,thoserelatingtotheproduction,acquisition,gathering,manufacturing,transportation, storage,tradingordeliveryoftheProducttotheextentsuchregulationsaffecttheSellerortheSeller’s supplier(s).

16.2 Furthermore,thePartiesagreethatwhereatanytimeduringthecurrencyoftheAgreementany RegulationsarechangedornewRegulationshavebecomeorareduetobecomeeffective,whetherby law,decreeorregulationorbyresponsetotheinsistenceorrequestofanygovernmentalorpublic authorityoranypersonpurportingtoactforsuchentities,andthematerialeffectofsuchchangedornew regulationis: (a) notcoveredbyanyotherprovisionoftheAgreement;and/or

(b) hasorwillhaveamaterialadverseeconomiceffectontheSeller theSellershallhavetheoptiontore-negotiateingoodfaithwiththeBuyertheprice(s)orother relevanttermsoftheAgreement,basedonsuchchangedornewRegulations.

16.3 TheSellermayexercisetheoptionstatedinArticle16.2atanytimebyissuingaNoticetotheBuyerof suchchangedornewRegulations.TheNoticeshallcontainthenewprice(s)ortermsandconditions proposedbytheSellerandtheinformationexplainingthematerialadverseeconomiceffectthatit imposesontheSeller.WherethePartiesdonotagreeonthenewprice(s)ortermsandconditionswithin 15DaysafterthedateoftheSeller’sNotice,theSellershallhavetherighttoterminatetheAgreement immediatelyattheendofsuch15Dayperiod.AnyCargoDeliveredduringsuch15Dayperiodshallbe soldandpurchasedattheprice(s)andonthetermsandconditionsspecifiedundertheAgreement withoutanyadjustmentinrespectoftheneworchangedRegulations.

2011 version 1.0 59

GN

ERA

L T

ERM

S

ARTICLE 17. SUSPENSION, TERMINATION AND RIGHT OF RE-SALE

17.1 Buyer’s default

17.1.1 WithoutprejudicetoanyrightofterminationtheSellermayhavebyequityorlaw,theSellermay,atits solediscretionandinadditiontoanyotherlegalremediesitmayhave,forthwithupongivingwritten NoticetotheBuyersuspendalldeliveriesundertheAgreementand/orterminatetheAgreementwhere: (a) theBuyerisinbreachofanyconditionsoftheAgreement;

(b) deliveryordischargeoftheCargoisdelayedduetoanycause(s)attributabletotheBuyerand suchdelayisnotexcusedbyanyotherprovisionoftheAgreement;

(c) loadingordischargeoftheCargoisdelayedbymorethan72hoursaftertheNORhasbeen tenderedduetoreasonsattributabletotheBuyer;

(d) apetitionisfiledwithacourthavingjurisdictionoranorderismadeoraneffectiveresolutionis passedforthedissolution,liquidationorwindingupoftheBuyeroritsParentCompany;

(e) thereisamajorchangeinthedirectorindirectownershipoftheBuyeroritsParentCompany;

(f) theBuyeroritsParentCompanybecomesinsolventorisadjudgedbankruptormakesan assignment,arrangementorcompositionwithorforthebenefitofitscreditorsordoesnotpayor isintheSeller’sreasonableopinionexpectedtobeunableorunwillingtopayitsdebtsasthe samebecomedue;

(g) theBuyeroritsParentCompanyceasesorthreatenstoceasetocarryonitsbusinessoramajor partthereof;

(h) adistress,execution,attachment,sequestrationorotherlegalprocessisleviedorenforcedor suedonoragainstanysignificantpartofthepropertyand/orassetsoftheBuyeroritsParent Companyandsuchprocessisnotdischargedwithin14Daysthereafter;or (i) areceiverisappointedoranencumbrancertakespossessionofthewholeorasignificantpartof theassetsorundertakingoftheBuyeroritsParentCompany.

17.1.2 WheretheSellersuspendstheDeliveryoftheCargoduetoanyoftheeventsreferredtounderthisArticle 17.1.1theSellermay,solongassucheventiscontinuing,atanytimeterminatetheentireAgreement.

17.1.3 Where,pursuanttotheprovisionsofthisArticle17.1,theSellerunderanAgreementprovidingfor multipledeliveriestemporarilysuspendstheDeliveryoftheCargoandthendecidestoresumedeliveries undertheAgreement,theSellermaycancelthesuspendeddeliveryandshallbeundernoobligationto makeupforanyquantityoftheCargothatwouldhavebeenDeliveredtotheBuyerbutforsuch suspension.

17.1.4 WheretheAgreementprovidesformultipledeliveries,thentherightsgiventotheSellerinthisArticle17.1 applytoalldeliveriessuchthatwheretheSellerisallowedtoterminateinrespectofonedelivery,thenit isentitledtoterminatealltheremainingdeliveries.

17.1.5 AnyterminationoftheAgreementbytheSellershallbewithoutprejudicetotherightsandobligationsof eachPartyasaccruedonthedateoftermination.

2011 version 1.0 60

GN

ERA

L T

ERM

S

17.2 Seller’s default

17.2.1.1WithoutprejudicetoanyrightofterminationtheBuyermayhaveinequityorinlaw,theBuyermayat itssolediscretion,andinadditiontoanyotherlegalremediesitmayhave,forthwithupongivingNotice totheSellerterminatetheAgreement,wheretheSeller,foranyreasonwhatsoever,isinbreachofany conditionsoftheAgreement.InrelationtomultipledeliveriesundertheAgreement,theBuyer’srightto terminateunderthisArticle17.2orotherwise,onlyappliestothedeliveryinrespectofwhichtheSelleris inbreachandnottofuturedeliveries.

17.2.1.2AnyterminationoftheAgreementbytheBuyershallbewithoutprejudicetotherightsandobligationsof eachPartyasaccruedatthedateoftermination.

17.3 Right of resale

17.3.1 WheretheBuyerfailstotakedeliveryofanyoftheProductunderthetermsoftheAgreement,andsuch failureisnotexcusedthroughanyotherprovisionoftheAgreement,theSellershall,inadditionto anyotherlegalremediesitmayhave,beentitledtoselltheProductcomprisedinsuchdeliveryforthe Buyer’saccount,inapublicorprivatesaleafterissuingsevendaysnoticetotheBuyerandthepriceso obtainedshallbedeemedconclusivelytobethebestpricethattheSellercouldobtain.

17.3.2 TheBuyershallreimbursetheSellerforanydifferencebetweentheprice(s)statedintheagreementand theprice(s)obtainedthroughpublicorprivatesaleforthequantityoftheProductthatnottakenfor deliverybytheBuyer,togetherwithallexpensesincurredbytheSellerthroughtheBuyer’sfailuretotake deliveryofanyoftheProduct.

17.3.3 PaymentshallbemadebytheBuyertotheSellerwithin30DaysfromthedateoftheSeller’sinvoice.

2011 version 1.0 61

GN

ERA

L T

ERM

S

ARTICLE 18. LIMITATION OF LIABILITY/INDEMNIFICATION

18.1 Consequential lossesExceptasspecificallyprovidedforelsewhereintheAgreement,innoevent,includinganegligentactoromissiononitspart,shalleitherPartybeliabletotheother,whetherundertheAgreementorotherwiseinconnectionwithit,incontract,tort,breachofstatutorydutyorotherwise,inrespectofanyindirectorconsequentiallossesorexpensesincluding(withoutlimitation)ifandtotheextenttheymightnototherwiseconstituteindirectorconsequentiallossesorexpenses,lossofanticipatedprofits,plantshut-downorreducedproduction,lossofpowergeneration,blackoutsorelectricalshut-downorreduction,hedgingorotherderivativelosses,punitivedamages,goodwill,use,marketreputation,businessreceiptsorcontractsorcommercialopportunities,whetherornotforeseeable.

18.2 Monetary limits TheSeller’sliability,ifany,evenintheeventofnegligenceonitspart,shallalwaysbelimitedtothedifferencebetweenthecontractpriceandthemarketpriceofthequantityoftheCargoatthetimethelossordamageinquestionoccurredandassessedattheplacewheretheDeliverytookplaceorshouldhavetakenplaceorthenearestavailablemarket.

18.3 Time limitsWithoutderogatingfromthespecifictimelimitsstatedintheAgreementforthesubmissionofdemurrageclaimsandcomplaintsofdeficiencyofquantityorqualityandanyotherprovisionsrequiringcompliancewithinagivenperiod,allofwhichshallremaininfullforceandeffect,anyclaimarisingundertheAgreementshallbecommencedwithintwoyearsfromthedateonwhichtheCargowasDeliveredorthedateonwhichtheCargoshouldhavebeenDelivered.Failingwhichtheclaimshallbetimebarredandanyliabilityorallegedliabilityoftheotherpartyshallbefinallyextinguished.

18.4 Indemnification

18.4.1 TheBuyeragreestoindemnifyandholdtheSelleranditsAffiliatesharmlessinrespectofanyliability, loss,damageorexpenseofwhatsoevernaturethattheSellermaysustainbyreasonofathirdparty bringingaclaimagainsttheSellerforpersonalinjuryand/ordeathand/orlosscausedbytheCargo (including,butnotlimitedto,thehandlingoftheCargo)followingthepassingofriskortitletotheCargo.

18.4.2 TheprovisionsofthisArticle18.4shallcontinuetoapplynotwithstandingtheterminationorexpiryofthe Agreementforanyreasonwhatsoever.

2011 version 1.0 62

GN

ERA

L T

ERM

S

ARTICLE 19. GOVERNING LAW AND LITIGATION/ARBITRATION

19.1 Governing law

19.1.1 Default position and options

19.1.1.1ThegoverninglawoftheAgreementshallbeasspecifiedintheSpecialConditionsbutlimitedtothe choicebetweenthelawsof(i)England,(ii)Norway,(iii)theStateofNewYork,UnitedStatesofAmerica or(iv)Singapore.

19.1.1.2WherenogoverninglawisspecifiedintheSpecialConditions,Englishlawshallapply.

19.1.2 Security for claims

WhateverlawgovernstheAgreementandnotwithstandingtheforumthatischosenfortheresolutionofanydisputesorclaims,neitherPartyshallbeprecludedfrompursuingarrest,attachmentand/orotherconservatory,interlocutoryorinterimactionsinanycourtorexercisinganycontractualrightsinrelationtotheCargoortheMeansofTransportprovidedforelsewhereintheAgreement.

19.1.3 Vienna Convention

NotwithstandinganythingtothecontraryintheAgreement,thePartiesherebyagreethattheUnitedNationsConventiononContractsfortheInternationalSaleofGoodsofVienna,11thApril1980,shallnotapplytotheAgreement.

19.2 Litigation/Arbitration

19.2.1 English law

Article19.2.1shallapplywherethegoverninglawisEnglishlaw.

19.2.1.1ExceptasprovidedforinArticle19.2.1.2andArticle19.2.1.3,anydisputearisingoutoforinconnection withtheAgreement,includinganyquestionregardingitsexistence,validityorterminationshallbereferred totheexclusivejurisdictionoftheHighCourtinLondon.

19.2.1.2NotwithstandingArticle19.2.1.1,theSellermayreferanysuchdisputetoberesolvedbyarbitrationin LondoninaccordancewithTheArbitrationAct1996asamendedfromtimetotime.Unlessotherwise agreed,thearbitrationtribunalshallconsistofthreearbitrators,onetobeappointedbyeachofthe Parties,andthethirdarbitratorwhoshallbethechairmanofthetribunalshallbeappointedbythetwo soappointed.WheretheSellerelectstoarbitrateitshallsendaNoticeinwritingtotheBuyerappointing itsownarbitratorandrequestingtheBuyertoappointitsarbitratorwithin14DaysofsuchNotice.Where theBuyerfailstoappointitsarbitratorandgiveNoticeofhavingdonesowithinthesaid14Days,the Seller’sappointedarbitratorshallbedeemedthesolearbitrator,whoseawardshallbefinalandbinding asifthearbitratorwasappointedbyagreement.WheretheBuyeristheclaimingpartythentheSeller mustelecttoarbitrateinwritingwithin14DaysoftheBuyer’swrittenrequesttoacceptserviceofHigh Courtproceedingsasper16.2.3(d).

19.2.1.3NotwithstandingArticle19.2.1.1andArticle19.2.1.2,anysuchdisputewheretheprincipalamountin disputedoesnotexceedasumofUSD100,000(UnitedStatesDollarsOneHundredThousand)shall besettledbyarbitrationinLondoninaccordancewiththe1996ArbitrationAct.TheLondonMaritime ArbitratorsAssociationSmallClaimsProcedureshallapplyinthiscase.

19.2.1.4EachPartyundertakestoappointalawfirminEnglandtoacceptserviceofproceedingswithinthree WorkingDaysofawrittenrequestfromtheotherPartytodoso.

2011 version 1.0 63

GN

ERA

L T

ERM

S

19.2.2 Norwegian law

Article19.2.2shallapplywherethegoverninglawisNorwegianlaw.

19.2.2.1ExceptasprovidedforinArticle19.2.2.2,anydisputearisingoutoforinconnectionwiththeAgreement, includinganyquestionregardingitsexistence,validityorterminationshallbereferredtotheexclusive jurisdictionoftheCourtsinStavanger,Norway.

19.2.2.2NotwithstandingArticle19.2.2.1,anysuchdisputewheretheprincipalamountindisputedoesnotexceed asumofUSD100,000(UnitedStatesDollarsOneHundredThousand)shallexclusivelyandfinallybe settledbywayofarbitrationinStavanger,Norway,andbeconductedinaccordancewiththerulesfor AlternativeDisputeResolutionSectionIIIFastTrackArbitrationoftheOsloChamberofCommerce.

19.2.2.3Intheeventofarbitration,thePartiesshallagreeuponasinglearbitratortowhomthematterindispute shallbereferredfordetermination.WherethePartieshave,within10DaysfromthedateoftheNotice ofArbitration,failedtoagreeuponanarbitrator,thenthePresidentoftheStavangerDistrictCourt,shall, ontheapplicationofeitherorbothParties,appointthesinglearbitrator,within14Days.

19.2.2.4ThearbitrationshallbeconductedintheEnglishlanguage.

19.2.3 New York law

Article19.2.3shallapplywherethegoverninglawisthatoftheStateofNewYork,UnitedStatesofAmerica.

19.2.3.1Exceptasprovidedbelow,thePartiesheretoaccepttheStateofNewYork,astheproperlegalvenue forthesettlementofanycontroversyordisputethatmayarisefromorinconnectionwiththeAgreement. Furthermore,theexistence,validity,interpretationandenforcementoftheAgreement,andany controversy,claimordisputehereunder,whetherincontract,tort,equityorotherwise,shallbegoverned by,construedandenforcedinaccordancewiththeLawsoftheStateofNewYork,withoutgivingeffectto itsconflictoflawsprinciples,andthefederalLawsoftheUnitedStatesapplicabletherein.

19.2.3.2ExceptasprovidedforinArticle19.2.3.3below,eachPartyirrevocably:(i)submitstotheexclusive jurisdictionoftheUSFederalDistrictCourtfortheSouthernDistrictofNewYorklocatedintheBorough ofManhattanor,ifsuchcourtdeclinestoexerciseordoesnothavejurisdiction,inanyNewYorkstate courtintheBoroughofManhattanoranyotherFederalcourtintheStateofNewYork,andtoserviceof processasprovidedbyNewYorkLaw,and(ii)waivesanyobjectionwhichitmayhaveatanytimeto thelayingofvenueofanyproceedingsbroughtinanysuchcourt,waivesanyclaimthatsuchproceedings havebeenbroughtinaninconvenientforumandfurtherwaivestherighttoobject,withrespecttosuch proceedings,thatsuchcourtdoesnothavejurisdictionoversuchParty.Further,eachPartywaives,to thefullestextentpermittedbyapplicablelaw,anyrightitmayhavetoatrialbyjuryinrespectof anyproceedingsrelatingtotheAgreement.NothingintheAgreementprecludeseitherPartyfrom bringingproceedingsinanyotherjurisdictioninordertoenforceanyjudgmentobtainedinany proceedingsreferredtointhisArticle19,norwillthebringingofsuchenforcementproceedingsinany oneormorejurisdictionsprecludethebringingofenforcementproceedingsinanyotherjurisdiction. EitherPartymayfileacopyofthisArticle19.2.3withanycourtaswrittenevidenceoftheknowing, voluntaryandbargainedagreementbetweenthePartiesirrevocablytowaiveanyobjectionsto jurisdiction,venueortoconvenienceofforum.

19.2.3.3NotwithstandingtheaboveprovisionsofthisArticle19.2.3,allclaims,disputes,andothermattersarising fromorinconnectionwiththeAgreement,wheretheamountindisputedoesnotexceedasumofUSD 500,000(UnitedStatesDollarsFiveHundredThousand)whichthePartiesareunabletoresolveby mutualagreement,shallexclusivelyandfinallybesettledbywayofarbitrationinNewYorkasfollows: (a) Whereacontroversyorclaimshouldarise,therepresentativesofthePartieswhonegotiatedthe Agreement,ortheirrespectivesuccessors(“PrincipalContacts”),willmeetatleastonceand willattempttoresolvethematter.EitherPrincipalContactmayrequestthattheothermeet within14Days,atamutuallyagreedtime.Wherethematterhasnotbeenresolvedwithin20 Daysoftheirfirstmeeting,(whichperiodmaybeextendedbymutualagreement),thePartieswill attemptingoodfaithtoresolvethecontroversyorclaiminaccordancewiththeInternational InstituteforConflictPreventionandResolution(“CPR”)ModelProcedureforMediationof BusinessDisputes.

2011 version 1.0 64

GN

ERA

L T

ERM

S

(b) Wherethematterhasnotbeenresolvedpursuanttotheaforesaidmediationprocedurewithin 30Daysofthecommencementofsuchprocedure(whichperiodmaybeextendedby mutualagreement),thecontroversyshallbesettledbyarbitrationinaccordancewiththeCPR RulesforNon-AdministeredArbitrationthencurrentlyineffect,byasolearbitrator.The arbitrationshallbegovernedbytheUnitedStatesArbitrationAct,9U.S.C.1-16,andjudgment upontheawardrenderedbythearbitrator(s)maybeenteredbyanycourthavingjurisdiction thereof.

19.2.4 Singapore law

Article19.2.4shallapplywherethegoverninglawisSingaporelaw.

19.2.4.1ExceptasprovidedforinArticle19.2.4.2,anydisputearisingoutoforinconnectionwiththeAgreement, includinganyquestionregardingitsexistence,validityortermination,shallbereferredtotheexclusive jurisdictionoftheCourtsoftheRepublicofSingapore.

19.2.4.2NotwithstandingArticle19.2.4.1,thePartiesmayagreetoreferanysuchdisputetoarbitrationin SingaporeinaccordancewiththeArbitrationRulesoftheSingaporeInternationalArbitrationCentre (“SIACRules”)forthetimebeinginforce,whichrulesaredeemedtobeincorporatedbyreferenceinthis Article19.2.4.

19.2.4.3TheArbitrationTribunalshallconsistofthreearbitrators,onetobeappointedbyeachPartyandthethird tobeappointedbytheChairmanoftheSingaporeInternationalArbitrationCentre.

19.2.4.4ThearbitrationshallbeconductedintheEnglishlanguage.

2011 version 1.0 65

GN

ERA

L T

ERM

S

ARTICLE 20. COMPLIANCE

20.1 Destination restrictions

20.1.1 ForthepurposesofthisArticle20,“EmbargoedCountry”shallmeananycountry,state,territoryorregion thatissubjecttoatradeembargoimposedontherelevantProductbyanyGovernmentalAuthorityand affectingeitherPartyoritsAffiliatesand/oranythirdpartytotheextentthethirdpartyisinvolvedinthe executionoftheAgreementonbehalfofeithertheBuyerortheSeller.

20.1.2 TheBuyershallnotknowinglysell,supplyorDeliver,directlyorindirectly,theCargotoanEmbargoed CountryorincontraventionofanyapplicabletradeembargorequirementsofNorwayortheUnitedStates ofAmericaortheUnitedNations.

20.1.3 TheSellermayatanytimerequiretheBuyertoprovideanyrelevantdocumentsforthepurposeof verifyingthefinaldestinationoftheCargoandtheBuyerundertakestoadvisetheSeller,uponrequest,of thedestinationoftheCargo.

20.1.4 Where,atanytimebeforetheCommencementofDischargeoftheshipment,importationoftheCargoat thedesignateddischargeTerminalisprohibitedbyorderofthegovernmentalauthoritiesofthecountryin whichtheCargohasbeenproducedorloadedoristobeimported,thentheBuyershallarrangefor dischargeatanacceptablealternativeportthatisnotsubjecttoanysuchprohibition.Anyresulting additionalcostsincurredbytheSellerasaresultofsuchalternativedischargeshallberefundedpromptly totheSellerbytheBuyer.

20.1.5 IntheeventthattheCargoisdisposedofbytheBuyertoathirdpartyinwholeorpart,theBuyershall ensurethatallendusersoftheCargoabidebytheprovisionsstatedinArticle20.1andwithoutdelay providetheSellerwithallrelevantinformationastheSellermayrequirerelatedtosuchalternative disposalincludingnameoftheenduser,nameoftherefineryandanyotherrelevantinformationthe Sellermaydeemnecessary.

20.1.6 TheBuyer’sfailuretocomplywithanyoftheprovisionsofArticle20.1(orwheretheSeller,atitssole discretion,hasreasonablegroundsforbelievingthatsuchundertakingsshallnotbecompliedwith) shallentitletheSeller(withoutprejudicetoanyotherrightsandremediesitmayhaveunderthe Agreement)toterminatetheAgreement,suspendfurtherDeliveriesoftheProductundertheAgreement ordisposeofanyundeliveredCargoasitdeemsfit.

20.2 Anti-corruption and facilitation payments

20.2.1 ItisaconditionoftheAgreementthatthePartieswillcomplywith,andwillusereasonableendeavours toensurethatanythirdPartiesusedbythemtofulfiltheParties’respectiveobligationsunderthe Agreementwillcomplywith,alllaws,rules,regulations,decreesorofficialgovernmentalordersrelatingto anti-bribery,anti-corruptionand/oranti-moneylaundering,applicabletoanyofthePartiesortheirultimate parentcompanies.

20.2.2 Allfinancialsettlements,billingsandreportsinconnectionwiththeAgreementshallbeatrueandproper reflectionofthetransactions.Suchdatamayberelieduponasbeingcompleteandaccurateforthe purposesofanyrecordingsand/orreportingmadeortobemadebyeitherPartyoranyoftheir representatives,forwhateverpurpose.

20.3 Health, Safety and Environment (“HSE”), drug and alcohol policy

20.3.1 TheBuyerwarrantsthatitisfullyconversantwithStatoil’sHSEpolicyandtheethicalstandardsand requirementsasdetailedatwww.statoil.com.

2011 version 1.0 66

GN

ERA

L T

ERM

S

20.3.2 ThePartiesagreethatallbusinesswillbeconductedinthemostresponsiblemannertoensurethatthe operationsinvolveminimumrisktopeople,theenvironmentandequipment.Thesharedtargetsforthe operationofthetradearezeropersonnelinjuries,zerospills/environmentaldamageandzeroequipment damage.

20.3.3 EachPartyshallnotifytheotherofanyincidentsinconnectionwiththeirperformanceunderthe AgreementrelatedtoHSEissuesincludinganypollutionincidentsthatrequirenotificationtoany governmentalauthorities,furtherinvestigationorotherresponseactionunderanyapplicable environmentallawsand/orregulations.

20.3.4 EachPartyagreestoissueHSEperformancedatanotolderthansixmonthsuponrequestoftheother Partycoveringanyrecordableincidentsduringtherelevantperiod.Suchreportsshallprovideabrief descriptionoftheincidentandappropriatefollow-upactiontaken.

20.3.5 ThePartyresponsibleforemployingtheMeansofTransportundertakesthatatalltimestheMeansof TransportwillatalltimesstrictlyobservetheHSEprovisions,policiesorguidelinesatanyTerminalor placethatitisrequiredtouseinconnectionwiththeirperformanceundertheAgreementand,where relevant,theportsorplaceswheresuchTerminalsaresituatedandtheroadsorrailwaynetworkusedfor thetransportandperformthetransportinaccordancewithanysuchregulationsinforceatsuchplaceor port.

20.3.6 Furthermore,theapplicablePartyshallundertakethatpersonnelemployedbytheMeansofTransport shallspecificallyandstrictlyobservetherespectivenationalorregionallegislationswithrespecttoalcohol anddrugconsumptionpriortoandwhileatwork.

20.3.7 ShouldtheMeansofTransport,oritsemployees,representativesorsub-contractorsfailtoobserveany andalloftheguidelinesand/ordirectionsoftheapplicableloadingTerminal/dischargeTerminalor nationalorregionallegislationpertainingtoHSEthatcouldresultinlosses,damages,costs,expensesor finesoranyothercostsagainstthePartynotprovidingthetransport,thePartythathasundertakenthe provisionoftransportshallindemnifytheotherPartyinrespectofsuchlosses,damages,costs, expenses,finesetc.

20.4 Workers’ conditions

20.4.1 WheretheAgreementprovidesfortheCargotobeshippedonaVessel,thePartyresponsiblefor performingthetransportoftheCargoshallundertaketoensurethattheVesselhasavalidInternational TransportWorker’sFederation(“ITF”)BlueCardcertificateorequivalentcertificateevidencingthatthe minimumtermsandconditionsofemploymentofthecrewoftheVesselareacceptabletotheITF.

20.4.2 ThePartyresponsibleforperformingthetransportoftheCargo(“theResponsibleParty”)shallindemnify theotherPartyfromandagainstanyandalllossordamage(includingbutnotlimitedtodemurrageand/ ordetentionoftheVessel),costs,legalfeesandotherexpensesthattheotherPartymaysufferasa resultofstrikes,boycottsoranyotherindustrialorlegalactionattheloadingand/ordischargeTerminal (asthecasemaybe)asaresultoftheResponsibleParty’sbreachofArticle20.4.1.

2011 version 1.0 67

GN

ERA

L T

ERM

S

ARTICLE 21. MISCELLANEOUS

21.1 REACH

21.1.1 TheprovisionsofthisArticle21.1shallapplyinrespectofanydeliverywhereeitherPortofLoading,Port ofDestination,PointofLoadingandPointofDestinationislocatedwithintheEuropeanUnion/European EconomicArea(“EU/EEA”)unless: (a) theProductiscrudeoilorcondensate;or

(b) analternativeexemptionappliesunderREACHArticle2(7)b.

21.1.2 ThePartiesshallcomplywithREACHasamendedfromtimetotime,andtheirrespectiveobligations hereunder.

21.1.3 IftheProductissourcedfrominsidetheEU/EEAanddeliveredintheEU/EEAbytheSeller,orifthe ProductissourcedfromoutsidetheEU/EEAandtheSellerisdefinedasanimporterbyREACH,the SellershallprovidetheBuyerwithacopyofthecurrentSafetyDataSheet(SDS)oftheProductand anyotherhealth,safetyandenvironmentalinformationrelatingtoitandneededbytheBuyerand/or reasonablyrequestedbytheBuyertocomplywiththerequirementsofREACH.

21.1.4 IftheProductissourcedfromoutsidetheEU/EEA,andtheSellerisnotanimporterasdefinedby REACH,theSellershallmakereasonableendeavourstoprovidetheBuyerwiththeChemicalAbstract ServiceIndexnumber(“CASNumber”)and/orEuropeanInventoryofExistingCommercialChemical Substancesnumber(“EINECSNumber”)and/ororanyotherhealth,safetyandenvironmentalinformation relatingtotheProduct.

21.1.5 NotwithstandinganyotherprovisiontothecontraryintheAgreement,inprovidingtheBuyerwithaCAS Numberand/orEINECSNumberand/oranyotherhealth,safetyandenvironmentalinformationrelating totheProductpursuanttothisArticle21.1.4,regardlessoftheirsource,theSellerprovidesnowarranty orrepresentationastotheaccuracyorcompletenessofsuchidentificationnumber(s)orinformation relatingtoitandneededbytheBuyerand/orreasonablyrequestedbytheBuyertocomplywiththe requirementsofREACH,hencetheSelleracceptsnoliabilityforloss,damage,delayorexpenseincurred bytheBuyerforwhateverreasonarisingfromitsrelianceontheaccuracyoftheidentificationnumbers orotherinformationhereunderprovidedand/ortheexistenceofavalid(pre-)registrationoftheProduct tobeimportedintotheEU/EEA.

21.2 Assignment 21.2.1 NeitherPartyshallassignanyofitsrightsandobligationsundertheAgreement,inwholeorinpart,

withoutthepriorwrittenconsentoftheotherParty.TheassigningPartyshallremainjointlyandseverallyliableforthefullandproperperformanceoftheAgreement.AnyassignmentnotmadeinaccordancewiththetermsofthisArticle21.2shallbevoid.

21.2.2 NotwithstandingArticle21.2.1,theSellermayatanytimeassignitsfinancialinterestfromthesaleoftheCargotoanythirdpartyincludingbutnotlimitedtotheSeller’sbankorbanksortoanyotherfinancialinstitutionswhichtheSellerinitsabsolutediscretiondeemstobeappropriate.

21.3 Consents and authorisationsEachPartyshallberesponsibleforobtainingallconsents,authorisations,approvalsandassurancesofwhatsoevernaturenecessarytoenableittocomplywithitsobligationsundertheAgreement.

2011 version 1.0 68

GN

ERA

L T

ERM

S

21.4 Recording of conversations

21.4.1 EachPartyacknowledgesandagreesthattheotherPartymayfromtimetotimeandwithoutfurthernotice:

(a) recordandretainelectronictransmissions(includingtelephoneconversations,emailsandinstant messaging)betweentheParties’respectiverepresentativesinconnectionwiththenegotiation and/orperformanceoftheAgreementincentralandlocaldatabasesfortheirrespective legitimatepurposes;and

(b) monitorelectronictransmissionsthroughtheirinternalandexternalnetworksforpurposesof securityandcompliancewithapplicablelaws,regulationsandinternalpoliciesfortheirother legitimatebusinesspurposes.

21.4.2 EachPartywillobtainanynecessaryconsentforandgivenoticeofsuchrecordingtosuchpersonnelof itanditsAffiliatesand/oritsagentsasisnecessary.ThePartiesagreethatanysuchrecordingsmaybe retainedandsubmittedinevidencetoanycourtorinanyotherlegalproceedingsforthepurposeof establishinganymattersrelatingtotheAgreement.

21.5 Confidentiality ThecontentsoftheAgreementandallotherdocumentsrelatingtotheAgreement,andanyinformationmadeavailablebyonePartytotheotherPartywithrespecttotheAgreementareconfidentialandshallnotbedisclosedtoanythirdParty(norshallanypublicannouncementrelatingtotheAgreementbemadebyeitherParty),exceptforsuchinformationthat:

(a) wasalreadyknowntothePartyreceivingtheinformationfromanon-confidentialsourcepriorto thedatetheinformationwasmadeavailablebytheotherParty;

(b) isorbecomesgenerallyavailabletothepublicotherthanasaresultofabreachofthe Agreement;

(c) isrequiredtobedisclosedinresponsetoanysummons,subpoena,orotherwiseinconnection withanylitigationortocomplywithanyapplicablelaw,order,regulation,rulingoraccounting disclosureruleorstandard;

(d) hasbeenormaybeobtainedfromanon-confidentialsourcethatdisclosesuchinformationina mannerthatdoesnotviolateitsobligationstotheotherPartyinmakingsuchdisclosures;

(e) isrequiredtobefurnishedtothedisclosingParty’sAffiliates,auditors,attorneys,oradvisors,in whichcasesuchAffiliates,auditors,attorneysand/oradvisorsshallberequiredtokeepthe informationdisclosedinconfidence;or

(f) isagreedbetweenthePartiesnottobeconfidential.

2011 version 1.0 69

GN

ERA

L T

ERM

S

21.6 Notices

21.6.1 WherecommunicationbetweenthePartiesisagreedtobegiveninaformofaNotice,such communicationcanbegiveninanymannerdescribedinthisArticle21.6.1totheaddressoftheother PartyspecifiedforthispurposeintheAgreementandwillbedeemedeffectiveasfollows: (a) wheredeliveredinpersonorbycourier,onthedateitisdelivered;

(b) wheresentbyfacsimiletransmission,onthedateoftransmission(itbeingagreedthatthe burdenofprovingreceiptwillbeonthesenderandthiswillbemetbyatransmissionreport generatedbythesender’sfacsimilemachine);or

(c) wheresentbypost,fiveDaysafteritisposted; unlessthedateofthatdelivery(orattempteddelivery),asapplicable,isnotaWorkingDayorthat communicationisdelivered(orattempted)orreceived,asapplicable,after15.00onaWorkingDay,in whichcasethatcommunicationwillbedeemedtobegivenandeffectiveonthenextWorkingDay.

21.6.2 ExceptforNoticesconcerningassignment,terminationandlegalorarbitrationproceedings,theParties mayexchangemessageswithrespecttotheperformanceoftheAgreementbye-mail.Anymessagesent bye-mailshallbesenttotheaddressoftheotherPartyspecifiedforthispurposeintheSpecial Conditionsand,ifsentonaWorkingDaybefore17.00,shallbedeemedtohavebeenreceivedonthat day;inanyothercase,onthenextWorkingDay.Notwithstandingtheforegoing,e-mailmessagesare onlyvalidifactuallyreceivedandthesenderbearstheriskofafailureintransmission.

21.6.3 AnyalterationstothecontactsoraddressesspecifiedintheSpecialConditionsshallbenotified immediatelybycourier,letterorfacsimiletotheotherParty.

21.6.4 Noticesmaynotbegivenbyinstantmessaging.

21.7 TrademarksNothingintheAgreementwhetherexpressorimpliedshallbedeemedtoconferanyrightupontheBuyertoapplyanytrademarkownedbytheSelleroranyofitsAffiliatestoanyProductsuppliedundertheAgreementnortousesuchtrademarkinrelationtosuchProduct.

2011 version 1.0 70

SchedulesSECTION IV

2011 version 1.0 71

SCH

EDU

LES

SCHEDULE 1 LETTER OF INDEMNITY FROM THE SELLER

Quote

LETTEROFINDEMNITY

Werefertoacargoof..................metrictonsof...................loadedonboardthevessel .......................attheportof............................on..............................,20......(“theCargo”)AlthoughwehavesoldandtransferredtitletothesaidCargotoyou,wehavebeenunabletoprovideyouwiththeoriginalbillsoflading,cargomanifestandtimesheetfortheCargo.InconsiderationofyourpayingtousUSD.....................beingthefullpurchasepriceoftheCargo,weherebyexpresslywarrantthatwehavemarketabletitletosuchCargoandthatwehavefullrightandauthoritytotransfersuchtitletoyouandtoeffectdeliveryofthesaidCargo.

Weagreetoprotect,indemnifyandholdyouharmlessfromandagainstanyandalldamages,costs,legalfeesandotherexpenseswhichyoumaysufferfromanybreachofabovewarrantiesorfromthefactthatyouarepayingusthepurchasepriceoftheCargowithouthavinginhandsuchoriginalbillsofladingandothershippingdocuments,includingbutnotlimitedto,anyclaimsordemandswhichmaybemadebyanyholderortransfereeofanyoftheoriginalbillsofladingandothershippingdocumentsorbyanyotherthirdpartyclaiminganinterestinorlienontheCargoorproceedsthereof.

Wewillmakeallreasonableeffortstoobtainandsurrendertoyou,assoonaspossible,theoriginalbillsofladingandtheothershippingdocumentsreferredtoaboveandthisletterofindemnityshallbecomenullandvoiduponourtenderingthesedocumentstoyou.

Ourobligationtoindemnifyyouissubjecttotheconditionthatyougiveuspromptnoticeoftheassertionofanyclaimsandfullopportunitytoconductthedefencethereof,andthatyoudonotsettleanysuchclaim(s)withoutourapproval.

ThisletterofindemnityshallbegovernedbyandconstruedinaccordancewiththelawgoverningtheagreementbetweenthePartiesforthesaleoftheCargo(“theAgreement”),andanydisputesthatcannotbesettledbymutualagreementbetweenthePartiesshallbesubjecttotheexclusivejurisdictionoftheapplicableforumspecifiedintheAgreement.Unquote

2011 version 1.0 72

SCH

EDU

LES

SCHEDULE 2 STANDBY LETTER OF CREDIT

We………………herebyissueourirrevocableStandbyLetterofCreditno:…………………

Byorderandforaccountofapplicant:[insertBUYER]………………………….………………………….………………………….(Hereinafterreferredtoasthe“Buyer”)Infavorofbeneficiary:[insertSELLER]………………………….………………………….………………………….(Hereinafterreferredtoasthe“Seller”)

ThisStandbyLetterofCreditisforanamountof:USD[insertamountinwordsandfigures],subjecttothespecialconditionsasstatedbelow.

Coveringnon-paymentoftheamountdueforthepurchaseofapproximately[insertquantity]of[insertproduct]accordingtothepurchase/saleagreementbetweenBuyerandSeller.

ThisStandbyLetterofCreditisavailablewiththeissuingbankbypaymentatsightagainstpresentationofthefollowingdocuments.

A)CopyofSeller’scommercialinvoice;

B)Seller’ssignedstatementstatingthatpaymentoftheSeller’sinvoice(s)isdue,andthatpaymenthasnotbeenmadebyBuyer;

ThisStandbyLetterofCreditexpiresatourcountersat[insertplace]on[insertdate].

SPECIALCONDITIONS:

1) Theamountofthecreditwillautomaticallyfluctuateinaccordancewiththeloadedquantityandprice formulainthepurchase/saleagreementaboveandbelowtheamountofthisStandbyLetterofCreditand withoutanyfurtheramendment1.

2) Allbankcharges,commissions,costs,expensesandanyotherfeesincurredwithrespecttoprovidingthe StandbyLetterofCreditareforBuyer’saccount.Allotherbankcharges,ifany,areforSeller’saccount.

3) Documentspresentedviatelefax/telecopyoremailareacceptable.

4) Partialandmultipledrawingsarepermitted.

5) ThisStandbyLetterofCreditshallbevalidalsointheeventthattheinvoicedamountexceedstheamount statedherein.

UponreceiptofdocumentsinfullcompliancewiththisStandbyLetterofCredittermsandconditions,weshalleffectpaymentaccordingtoyourinstructions,withvaluelatestthreeBusinessDaysafterreceiptofdocuments.

WheretheIssuingBankisaU.S.bank,theconstruction,validityandperformanceofthisStandbyLetterof

2011 version 1.0 73

SCH

EDU

LES

CreditshallbegovernedbyandconstruedinaccordancewiththelawoftheStateofNewYorkandanydisputeshallbesubmittedtotheexclusivejurisdictionoftheUnitedStatesDistrictCourtfortheSouthernDistrictofNewYorklocatedintheBoroughofManhattan,NewYork,or,wheresuchcourtdeclinestoexerciseordoesnothavejurisdiction,inanyNewYorkStatecourtintheBoroughofManhattan.WheretheIssuingBankisanon-U.S.bank,theconstruction,validityandperformanceofthisStandbyLetterofCreditshallbegovernedbyandconstruedinaccordancewithEnglishlawandanydisputeshallbesubmittedtotheexclusivejurisdictionoftheHighCourtofJsuticeinLondon.

ExcepttotheextentitisinconsistentwiththeexpresstermsofthisStandbyLetterofCredit,thisStandbyLetterofCreditissubjecttotheInternationalStandbyPracticesISP98,ICCPublicationNo.590.

Thistelefax/telecopyoremailistheoperativeinstrumentandnomailconfirmationwillfollow.

1ThisConditionshallnotapplywheretheissuingbankisaU.S.bank.

2011 version 1.0 74

SCH

EDU

LES

SCHEDULE 3 ISPS CODE/MTSA FOR ARTICLE 2 DELIVERIES

A. TheBuyershallprocurethattheVesselshallcomplywiththerequirementsoftheInternationalCode fortheSecurityofShipsandofPortFacilitiesandtherelevantamendmentstoSectionXIofSOLAS (“ISPSCode”)andwherethePortofLoadingiswithintheUSAand/orUSterritoriesorwaters,withthe USMaritimeTransportationSecurityAct2002(“MTSA”).

B. TheVesselshallwhenrequiredsubmitaDeclarationofSecurity(DoS)totheappropriateauthoritiesprior toarrivalatthePortofLoading.

C. NotwithstandinganyprioracceptanceoftheVesselbytheSeller,ifatanytimepriortothepassingofrisk andtitletotheCargotheVesselceasestocomplywiththerequirementsoftheISPSCodeorMTSA: 1. theSellershallhavetherightnottoBerththeVesselandanydemurrageand/oranyothercosts resultingshallnotbefortheaccountoftheSeller;and

2. theBuyershallbeobligedtosubstitutetheVesselwithavesselcomplyingwiththerequirements oftheISPSCodeandMTSA.

D. TheSellershallprocurethatthePortofLoadingshallcomplywiththerequirementsoftheISPSCodeand iflocatedwithintheUSAand/orUSterritories,withtheMTSA.

E. Subjectalwaysto(H),anycostsorexpensesinrespectoftheVesselincludingdemurrageorany additionalcharge,feeordutyleviedontheVesselatthePortofLoadingandactuallyincurredbythe BuyerresultingdirectlyfromthefailureofthePortofLoadingtocomplywiththeISPSCodeandiflocated withintheUSAand/orUSterritories,withtheMTSA,shallbefortheaccountoftheSeller,includingbut notlimitedtothetimerequiredorcostsincurredbytheVesselintakinganyactionoranyspecialor additionalsecuritymeasuresrequiredbytheISPSCodeorMTSA..

F. Subjectalwaysto(H),savewheretheVesselhasfailedtocomplywiththerequirementsoftheISPS CodeandwithintheUSAand/orUSterritoriesorwaters,withtheMTSAandsavewherecausedbythe Vessel’spreviousportsofcall,theSellershallberesponsibleforanydemurrageactuallyincurredbythe BuyerarisingfromdelaytotheVesselatthePortofLoadingresultingdirectlyfromtheVesselbeing requiredbythePortofLoadingoranyrelevantauthoritytotakeanyactionoranyspecialoradditional securitymeasuresorundergoadditionalinspections.ThisisthelimitoftheSeller’sliabilityinthis situation.

G. TheSeller’sliabilitytotheBuyergenerallyunderthisScheduleforanycosts,lossesorexpensesincurred bytheVessel,thechartererortheShip-ownerarisingoutoftheISPSCodeorMTSA(andincluding negligenceontheSeller’spart)shallbelimitedtothepaymentofdemurrageandcostsactuallyincurred bytheBuyertoallowtheVesseltoloadinaccordancewiththeprovisionsofthisSchedule.

H. IftheTerminalatthePortofLoadingisnotoperatedbytheSeller(oranAffiliate),thentheSeller’sliability underthisScheduleisconditionalontheSeller(havingusedreasonableefforts)beingabletorecover andactuallyrecoveringfromthesupplierorotherrelevantthirdparty,andthenonlytotheextentofsuch recovery.

2011 version 1.0 75

SCH

EDU

LES

SCHEDULE 4 ISPS CODE/MTSA FOR ARTICLE 3 OR ARTICLE 4 DELIVERIES

A. TheSellershallprocurethattheVesselshallcomplywiththerequirementsoftheInternationalCode fortheSecurityofShipsandofPortFacilitiesandtherelevantamendmentstoSectionXIofSolas(“ISPS Code”)andwherethePortofDestinationiswithintheUSAand/orUSterritoriesorwaters,withtheUS MaritimeTransportationSecurityAct2002(“MTSA”).

B. TheVesselshallwhenrequiredsubmitaDeclarationofSecurity(DoS)totheappropriateauthoritiesprior toarrivalatthePortofDestination.

C. NotwithstandinganyprioracceptanceoftheVesselbytheBuyer,ifatanytimepriortothepassingofrisk andtitletotheCargotheVesselceasestocomplywiththerequirementsoftheISPSCodeorMTSA, then: 1. theSellershallbeobligedtosubstitutetheVesselwithavesselcomplyingwiththerequirements oftheISPSCodeandMTSA;and

2. theBuyershallhavetherightnottoBerththeVesselatthePortofDestinationandany demurrageresultingshallnotbefortheaccountoftheBuyer.

D. TheBuyershallprocurethatthePortofDestinationshallcomplywiththerequirementsoftheISPSCode andiflocatedwithintheUSAand/orUSterritories,withtheMTSA.

E. AnycostorexpensesinrespectoftheVesselincludingdemurrageoranyadditionalcharge,feeorduty leviedontheVesselatthePortofDestinationandactuallyincurredbytheSellerresultingdirectly fromthefailureofthePortofDestinationocomplywiththeISPSCodeandiflocatedwithintheUSAand/ orUSterritories,withtheMTSAshallbefortheaccountoftheBuyer,includingbutnotlimitedtothe timerequiredorcostsincurredbytheVesselintakinganyactionoranyspecialoradditionalsecurity measuresrequiredbytheISPSCodeorMTSA.

F. SavewheretheVesselhasfailedtocomplywiththerequirementsoftheISPSCodeandwithintheUSA andUSterritoriesorwaters,withtheMTSA,theBuyershallberesponsibleforanydemurrageactually incurredbytheSellerarisingfromdelaytotheVesselatthePortofDestinationresultingdirectlyfromthe VesselbeingrequiredbythePortofDestinationtotakeanyspecialoradditionalsecuritymeasuresor undergoadditionalinspections,including(butnotlimitedto)byvirtueoftheVessel’spreviousportsofcall.

G. TheBuyer’sliabilitytotheSellerundertheAgreementforanycosts,lossesorexpensesincurredbythe Vessel,thecharterersortheShip-ownerresultingfromthefailureofthePortofDestinationtocomplywith theISPSCodeorMTSAshallbelimitedtothepaymentofdemurrageandcostsactuallyincurredbythe SellerinaccordancewiththeprovisionsofthisSchedule.

General Terms and Conditions for Sales - statoil.com Terms and Conditions for Sales . Crude Oil, ......

Documents

Transcript of General Terms and Conditions for Sales - statoil.com Terms and Conditions for Sales . Crude Oil, ......