general terms and conditions for sales - statoil
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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
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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.
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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.
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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.
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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.
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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.
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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.
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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;
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(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.
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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.
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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;
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(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.
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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.
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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.
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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 Quantity and quality
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.
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3.3 Vessel requirements
3.3.1 Local requirements
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.
3.3.3 Consequences of breach
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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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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.
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ARTICLE 4. DELIVERED AT PLACE (DAP)
4.1 Risk and titleRiskandtitletotheCargoshallpassfromtheSellertotheBuyerastheCargopassesthelastpermanentmanifoldflangeoftheSeller’sVesselupondischargeoftheCargoatthePortofDestination.
4.2 Quantity and quality
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.
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4.2.7 ThecostoftheIndependentInspector’sservicesshallbesharedequallybetweentheParties.
4.3 Vessel requirements
4.3.1 Local requirements
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.
4.3.3 Consequences of breach
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.
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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 Nomination of the Port of Destination
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.
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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.
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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.
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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.
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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.
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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.
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ARTICLE 5. FREE CARRIER (FCA)
5.1 Risk and titleNotwithstandinganyrightoftheSellertoretainthedocumentsreferredtoinArticle12.2.1untilpayment,riskandtitletotheCargoshallpassfromtheSellertotheBuyerattheagreedPointofLoadingastheCargopassestheinletmanifoldoftheBuyer’sRoadTanker/Railcarinquestionor;whereloadingbygravityfedtoploading,astheCargopassestheoutletoftheTerminal’sloadinghose.
5.2 Quantity and quality
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.
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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.
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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 Quantity and quality
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.
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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.
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ARTICLE 7. DELIVERED DUTY PAID (DDP)
7.1 Risk and titleNotwithstandinganyrightoftheSellertoretainthedocumentsreferredtoinArticle12.2.1,theriskandtitletotheCargoshallpassfromtheSellertotheBuyer:(a) wheredeliveryisbyRoadTanker,whentheRoadTankerarrivesatthePointofDestination;and
(b) wheredeliveryisbyRailcar,whenthelocomotiveisdisconnectedfromtheRailcaratthePointof Destination.
7.2 Quantity and quality
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.
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7.4.3 Nomination of the Port of Destination
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.
7.5.3.3 Eachexcesstimeclaimshallbesubmittedinwriting,togetherwithallsupportingdocuments.
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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.
7.5.4.2 Eachexcesstimeclaimshallbesubmittedinwriting,togetherwithallsupportingdocuments.
7.5.4.3 AnexcesstimeclaimwhichissubmittedasstatedinArticle7.5.4.2andnotdisputedbytheBuyershall bepaidbytheBuyertotheSellernotlaterthan30DaysfromthedateoftheSeller’sinvoice.Where paymenthasnotbeenmadewithinsuchduedate,interestonoverduepaymentshallbepayablein accordancewithArticle12.2.4.
7.6 DutiesTheSellershallprocurecustomclearanceoftheCargouponimportationandthepriceagreedshallbedeemedtoincludeanydutypayableuponimportationatthePointofDestination.
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ARTICLE 8. DELIVERED OUT OF TANK (EX TANK)
8.1 Risk and titleNotwithstandinganyrightoftheSellertoretainthedocumentsreferredtoinArticle12.2.1,riskandtitletotheCargoshallpassfromtheSellertotheBuyeratthePointofLoadingastheCargopassestheoutletflangeoftheSeller’sstorageTank.
8.2 Quantity and quality
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.
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ARTICLE 9. DELIVERED INTO TANK (INTO TANK)
9.1 Risk and titleNotwithstandinganyrightoftheSellertoretainthedocumentsreferredtoinArticle12.2.1,theriskandtitletotheCargoshallpassfromtheSellertotheBuyeratthePointofDestinationastheCargopassestheinletflangeoftheBuyer’sstorageTank.
9.2 Quantity and quality
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.
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ARTICLE 10. IN TANK TRANSFER (ITT)
10.1 Risk and titleNotwithstandinganyrightoftheSellertoretainthedocumentsreferredtoinArticle12.2.1theriskandtitletotheCargoshallpassfromtheSellertotheBuyeratthetimeandplaceoftheDeliveryandinsuchTank(s)asspecifiedintheSpecialConditions.
10.2 Quantity and quality
10.2.1 ThedeterminationofthequantityandqualityshallbeperformedattheplaceoftheDeliveryspecifiedin theSpecialConditions.
10.2.2 IntheabsenceofsuchagreementasdescribedunderArticle10.2.1,thedeterminationofthequantityand qualityshallbeperformedattheplaceoftheDeliveryspecifiedintheSpecialConditionsinaccordance withtheapprovedindustrypracticeandstandardpracticeinuseatsuchplace.
10.2.3 AmutuallyagreedIndependentInspectorshallbeappointedtoascertainorwitnessthedetermination ofquantityandqualityoftheCargoorthereadingsasthecasemaybe.ThecostoftheIndependent Inspector’sservicesshallbesharedequallybetweentheParties.
10.2.4 AnydocumentsissuedstatingthequantityandqualityDeliveredinaccordancewiththisArticle10.2shall beconclusiveandbindingonbothPartiesforallpurposes,savefraudormanifesterror.
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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 Quantity and quality
11.2.1 ThedeterminationofthequantityandqualityshallbeperformedattheplaceoftheDeliveryspecifiedin theSpecialConditions.
11.2.2 IntheabsenceofsuchagreementasdescribedinArticle11.2.1,thedeterminationofthequantityand qualityshallbeperformedattheplaceoftheDeliveryspecifiedintheSpecialConditionsinaccordance withthestandardpracticeinuseatsuchplace.
11.2.3 AmutuallyagreedIndependentInspectorshallbeappointedtoascertainorwitnessthedetermination ofquantityandqualityoftheCargoorthereadingsasthecasemaybe.ThecostoftheIndependent Inspector’sservicesshallbesharedequallybetweentheParties.
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.
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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
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(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.
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(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.
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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.
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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.
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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.
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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.
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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.
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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.
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15.6 Termination15.6.1 ThePartyseekingreliefofitsperformanceobligationunderthisArticle15shallresumesuchobligationas soonasreasonablypossibleafterthecircumstancesrelieduponhaveceased.
15.6.2 WheretheperiodofsuspensionoftheDeliveryduetoaForceMajeureEventshallcontinueformore than30consecutiveDaysfromthedatethatNoticeofsucheventisgiven,andsolongassucheventis continuing,eitherPartymayterminatesuchaffectedDeliveryupongivingNoticetotheotherPartyand neitherPartyshallhaveanyfurtherliabilitytotheotherPartyinrespectofsuchDeliveryexceptforthe rightsandremediespreviouslyaccrued.
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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.
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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.
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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.
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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.
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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.
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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.
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(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.
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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.
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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.
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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.
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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.
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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.
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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
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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
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CreditshallbegovernedbyandconstruedinaccordancewiththelawoftheStateofNewYorkandanydisputeshallbesubmittedtotheexclusivejurisdictionoftheUnitedStatesDistrictCourtfortheSouthernDistrictofNewYorklocatedintheBoroughofManhattan,NewYork,or,wheresuchcourtdeclinestoexerciseordoesnothavejurisdiction,inanyNewYorkStatecourtintheBoroughofManhattan.WheretheIssuingBankisanon-U.S.bank,theconstruction,validityandperformanceofthisStandbyLetterofCreditshallbegovernedbyandconstruedinaccordancewithEnglishlawandanydisputeshallbesubmittedtotheexclusivejurisdictionoftheHighCourtofJsuticeinLondon.
ExcepttotheextentitisinconsistentwiththeexpresstermsofthisStandbyLetterofCredit,thisStandbyLetterofCreditissubjecttotheInternationalStandbyPracticesISP98,ICCPublicationNo.590.
Thistelefax/telecopyoremailistheoperativeinstrumentandnomailconfirmationwillfollow.
1ThisConditionshallnotapplywheretheissuingbankisaU.S.bank.
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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.
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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.