Common use of Definition of New Product Clause in Contracts

Definition of New Product. A New Product is defined as any physical or financial transaction or exposure that: 1) is not listed on EXHIBIT 1: APPROVED PRODUCTS LIST; or 2) exposes Xxxxxxx to risks (e.g., Market, Liquidity, Credit, Operational, Legal, Regulatory, Accounting, Tax) to which the Company has not been previously exposed. Exposure to pre-existing approved risk types in significantly different ways (e.g., significantly different geographic location, market structure, or contract terms) would also constitute a New Product. For example, trading refined products in Singapore would constitute a new geographic location, which would require review through the new product process. Note that although adding a new customer always exposes the company to new credit risk, this stand-alone activity does not constitute a new product. An example form that can be used by the sponsor of a new product is included as EXHIBIT 4. The APPROVED PRODUCTS LIST as shown in EXHIBIT 1 is separated into Oil, Natural Gas, and Materials Handling. In addition to the general listing of the products, more detailed matrices are included in ATTACHMENTS 2 through 5. The oil and gas product matrices in ATTACHMENTS 3 and 4 list approved instruments by trader or marketer. The approved Materials Handling products matrix in ATTACHMENT 5 is shown by terminal and based on products that have been previously, are currently, or are now under consideration for handling at specific terminals.