Physical Supplier’s General Terms and Conditions for Barge Delivery

a) Products delivered conform to ISO 8217/2010 specifications.

b) Nominated prices are valid for 7 days from Tuesday to Monday the following week (Weekly pricing). Prices are subject to change after said validity period.

c) Cancelled orders which were loaded prior to the cancellation advice will be subject to Demurrage charges.

d) Payment due date will be based on agreed terms.

e) Royalty fees imposed by berth owners and/or operators will be charged at the receiving vessel’s expense.

f) Final quantity delivered will be based on the difference of Bunkering Barge Sounding figures before and after discharge as indicated on the Barge Sounding Report and the Bunker Delivery Receipt, duly acknowledged by the Receiving Ship and Barge Representatives.

g) Sampling procedures are compliant with Annex VI of Marpol 73/78. In the event that continuous dripping sample from the receiving ship’s bunker manifold is not permissible, an alternative dripping sample from the bunkering barge manifold shall be performed.

h) There will be three (3) sample bottles that will be produced by the procedure in the previous Condition. One (1) sample will be retained by the receiving vessel and shall be considered as the receiving vessel’s retained sample, while two (2) samples will be retained by the bunkering barge and shall be considered as the bunkering barge’s retained sample and the consequent Marpol sample. These samples are to be duly acknowledged by the Receiving Vessel’s and Barge’s Representatives.

i) In cases of disputes arising from quality claims, the Bunkering Barge’s Retained Sample shall be the Representative Sample which will be sent to a reputable laboratory mutually agreed upon by the parties involved, and shall serve as the basis for mitigating said claims.

j) Quality and/or quantity claims are time-barred 21 days from the time the product has been delivered. The reason being that these claims are urgent in nature and thus should be put to notice at the soonest possible time.

k) Payments made beyond the agreed credit terms shall be subject to an additional over- due charge equivalent to: Total Amount Due x Current Philippine Interest Rates x No. of Days Beyond Due Date.

l) Standard allowable laytime is 30 hours reversible for load port and discharge ports. Count of lay time at load port commences upon tender of Notice of Readiness within the nominated loading laycan. Count of lay time at disport commences upon tender of Notice of Readiness upon arrival at disport. Demurrage charges of P9,500.00 per hour shall apply for time in excess of allowable lay time.

m) Petrophilippines Co. Inc. shall not be held liable for liabilities which may arise beyond the scope of the purchase agreement. Any civil or criminal charges which may arise shall be held and tried in Regional Trial Courts within Quezon City, Philippines.