Common use of LAYTIME AND DEMURRAGE Clause in Contracts

LAYTIME AND DEMURRAGE. When Seller’s nominated vessel is ready to discharge and is within the Biodiesel Delivery Window, which shall be deemed to be the 24-hour period commencing 00:01 hours local time on the calendar Day of the ETA advised Hawaiian Electric ten (10) Days prior to arrival and ending 24:00 hours local time that same calendar Day as per this Section 6, Seller shall provide Hawaiian Electric Notice of Readiness (“NOR”). Laytime shall commence six (6) hours after NOR is tendered or three (3) hours after Seller’s nominated vessel is secure at the Discharge Pier, whichever shall first occur, provided that the end of said six (6) hours is within the Biodiesel Delivery Window. If Seller’s Nominated Vessel tenders NOR before the Biodiesel Delivery Window, the NOR shall be effective 00:01 hours local time on the Biodiesel Delivery Window. Allowable laytime shall be equal to the total volume of the shipment in barrels, as determined by the Independent Inspector from gauging the receiving or issuing tank(s) in Hawaiian Electric's Receiving Facility, divided by 1,000 barrels per hour plus additional time required for the receiving and discharging of the Pipeline Displacement Medium. Laytime shall cease when the hoses are disconnected. Demurrage shall be payable at a rate equal to Seller’s actual invoiced demurrage cost for each hour used and prorated for each portion of an hour used in excess of allowable laytime.

LAYTIME AND DEMURRAGE. When Seller’s nominated vessel is ready to discharge and is within the Biodiesel Delivery Window7.01 Laytime, which shall be deemed to be the 24-hour period commencing 00:01 hours local time on the calendar Day of the ETA advised Hawaiian Electric ten (10) Days prior to arrival and ending 24:00 hours local time that same calendar Day as per this Section 6, Seller shall provide Hawaiian Electric for Vessels tendering Notice of Readiness to load or discharge within the two (“NOR”). Laytime 2) day date range prescribed in Section 6.05 hereof, shall commence six (6) hours after NOR such notice has been received by Terminal Company or when the Vessel is tendered or three (3) hours after Seller’s nominated vessel is secure all fast at the Discharge PierBerth, whichever shall first occur, provided that the end of said six (6) hours is within the Biodiesel Delivery Window. If Seller’s Nominated Vessel tenders NOR before the Biodiesel Delivery Window, the NOR shall be effective 00:01 hours local time on the Biodiesel Delivery Window. Allowable laytime shall be equal to the total volume of the shipment in barrels, as determined by the Independent Inspector from gauging the receiving or issuing tank(s) in Hawaiian Electric's Receiving Facility, divided by 1,000 barrels per hour plus additional time required for the receiving and discharging of the Pipeline Displacement Mediumoccurs. Laytime shall cease terminate upon disconnection of the cargo arms or hoses, as applicable, or in the event that the Master or crew of the Vessel will not allow for prompt disconnecting of the cargo arms or hoses, one hour after completion of discharge. In the event the Vessel arrives outside of the two day date range, Laytime shall commence when Vessel is all fast at Berth and shall terminate upon disconnection of the hoses are disconnected. Demurrage cargo arms or hoses. 7.02 The following times ("Allowed Laytime") shall be payable at a rate equal deemed allowed to Seller’s actual invoiced Terminal Company. In the event that demurrage cost is incurred for each hour used and prorated for each portion of an hour used in excess of allowable Terminal's account, time on demurrage shall be calculated after deducting the following allowances from total laytime. (a) The time allowed to Terminal Company for receiving Commodities from or loading Commodities aboard each Vessel or for any Ship-to-Ship Transfer shall be thirty-six (36) hours. (b) If, at the time that the Vessel tenders its Notice of Readiness, Terminal Company has not received an advance payment for marine services as provided in Section 13.03 hereof, then all time which elapses between (i) Terminal Company's receipt of Notice of Readiness and (ii) Terminal Company's bank confirmation of receipt of said payment. (c) Time elapsing during the shifting of a Vessel from anchorage to Berth, getting into Berth, or clearing Berth. (d) Delay due to the Vessel's condition, including, without limitation, breakdown of machinery or inability of the Vessel to discharge the Vessel's full cargo within twenty-four (24) hours, or failure to maintain a minimum discharge pressure 100 PSI throughout discharge. (e) Interruptions or limitations to berthing, unberthing, discharging, or loading due to circumstances beyond Terminal Company's control, including but not limited to clearance by Canadian Coast Guard, sea conditions, and adverse weather conditions. (f) Interruptions to cargo discharge and/or loading operations while the Vessel is taking on or discharging ballast or other conditions beyond the Terminal's control. (g) Time consumed awaiting the arrival of User's measurement representatives and/or surveyors and time consumed while said representatives complete their work including time consumed for any Insurance Gauges. ********** (i) Any Laytime allowed and remaining under any applicable charter party after the Vessel has completed the discharge of the Commodities (reversible Laytime). (j) Time consumed during a Commodity Transfer to a Vessel or Vessels from one or more shore tanks operating in or below the Critical Zone for such tank or tanks. (k) In the event the Vessel has arrived outside the date range as provided in Section 6.05, all times used awaiting Berth availability. 7.03 If demurrage is incurred for Terminal's account, as specified in Section 7.02 above, the rate of demurrage to be paid by Terminal Company to User shall be as set forth in User's charter party agreement or agreements. For Vessels either owned or on time charter by the User, the appropriate rate of demurrage shall be determined by (i) applying the Average Freight Rate Assessment (AFRA) that is appropriate to the size of the Vessel concerned (as published by the London Tanker Broker's Panel or any similar generally accepted freight rate assessment, hereafter taking the place of AFRA) and is current on the date of presentation of the Notice of Readiness. In no event shall Terminal Company be obligated to make any payment for demurrage which is greater than the demurrage obligation of User to the Vessel's owner or operator.

LAYTIME AND DEMURRAGE. When Seller’s nominated vessel is ready to 21.1 Upon arrival at the discharge and is within terminal or the Biodiesel Delivery Window, which shall be deemed to be customary anchorage or other waiting place at the 24-hour period commencing 00:01 hours local time on the calendar Day of the ETA advised Hawaiian Electric ten (10) Days prior to arrival and ending 24:00 hours local time that same calendar Day as per this Section 6discharge terminal, Seller shall provide Hawaiian Electric Notice of Readiness (“NOR”). cause the master or his representative to tender to Buyer or Buyer's representative by facsimile, telex or telegram NOR to discharge the Products. 21.2 Laytime shall commence at six (6) running hours after NOR is tendered at the discharge terminal, or three upon the vessel's arrival in berth (3i.e. finished mooring when at a sealoading terminal and all fast when loading alongside a wharf), whichever first occurs. 21.3 Laytime allowed to Buyer for discharging each cargo shall be thirty-six (36) hours for discharging a full cargo and pro-rata thereof for part cargoes, Sundays, holidays and nights included. 21.4 Discharge of the cargo shall be continuous. Any time consumed for the purpose of clearing shore pipe lines of cargo after Seller’s nominated discharging by arranging for the vessel to pump water through them shall count as used laytime or, if the vessel is secure at the Discharge Pieralready on demurrage, whichever shall first occur, provided that the end of said six (6) hours is within the Biodiesel Delivery Window. If Seller’s Nominated Vessel tenders NOR before the Biodiesel Delivery Window, the NOR shall be effective 00:01 hours local as time on the Biodiesel Delivery Window. Allowable laytime shall be equal to the total volume of the shipment in barrels, as determined by the Independent Inspector from gauging the receiving or issuing tank(s) in Hawaiian Electric's Receiving Facility, divided by 1,000 barrels per hour plus additional time required for the receiving and discharging of the Pipeline Displacement Mediumdemurrage. Laytime shall cease upon disconnection of the delivery hoses from the vessel once discharge and shore pipe line clearing, if applicable, is complete. 21.5 In the event of lightering undertaken at the request of Buyer all time used in connection with lightering operations (such time shall commence when the vessel arrives at the lightering site designated by Buyer and shall end when the cargo hoses are disconnected. Demurrage have been disconnected from the last cargo receiving vessel) shall be payable at a rate equal count as used laytime, or, if the vessel is on demurrage, as time on demurrage. 21.6 Subject to Seller’s actual invoiced demurrage cost Sections 6.7 and 6.8 and to any provision to the contrary agreed by the Parties or agreed under the nomination procedure, for each hour used and prorated for each portion of an hour all time used in excess of allowable the allowed laytime set out herein, Buyer shall pay demurrage to Seller per running hour and pro rata for portions thereof at the demurrage rate and in the currency specified in the charter party. 21.7 Seller's right to demurrage (as set out herein) is a genuine pre-estimate of Seller's damages in respect of any failure by Buyer to complete the discharge within the allowed laytime. It is agreed that Buyer's obligation as to laytime and liability as to demurrage shall be absolute and not subject to qualification by the Force Majeure provisions of Section 6. However, if Buyer incurs liability for demurrage at the discharge terminal by reason of fire, storm, explosion, strike, lockout, stoppage or restraint of labour or by breakdown of machinery or equipment in or about the receiving facilities of Buyer or its consignee at the discharge terminal (but only to the extent that such conditions were not caused by the act or omission of Buyer, its consignee or the discharge terminal, and if vessel is not already on demurrage), such demurrage shall be paid at one-half the applicable rate as provided in Section 6.6. 21.8 Buyer shall pay Seller demurrage no later than thirty (30) days after receipt of Seller's invoice supported by appropriate documentation. In the event that Buyer fails to pay within thirty (30) days, Buyer shall pay interest on the overdue payment at the rate set out in Section 2.9.

LAYTIME AND DEMURRAGE. When Seller’s nominated 8.1 If the tanker vessel is ready to discharge tenders proper notice of readiness, arrives and is completely discharges ballast at the Point of Delivery within the Biodiesel Delivery Window, which shall be deemed loading date-range allocated to be the 24-hour period commencing 00:01 hours local time on the calendar Day of the ETA advised Hawaiian Electric ten (10) Days prior to arrival and ending 24:00 hours local time that same calendar Day as per this Section such tanker vessel in accordance with Clause 6, Seller shall provide Hawaiian Electric Notice of Readiness (“NOR”). Laytime the laytime shall commence six (6) hours after NOR Seller's local representative has received and accepted such proper notice of readiness, or when the vessel is tendered or three all fast in berth with loading hose(s) connected, whichever occurs first. 8.2 Laytime allowed for loading the Cargo nominated by Xxxxx and accepted by Seller shall be forty-two (342) hours. However, if the tanker vessel is to load more than one Cargo, as agreed in Special Terms Part-I, the laytime shall be increased by forty-two (42) hours for each additional Cargo. 8.3 Loading shall be completed and laytime cease to count on completion of disconnecting the loading hoses. 8.4 If the tanker vessel tenders notice of readiness at the Point of Delivery before the first day of the loading date-range allocated to that tanker vessel, it shall, always at the discretion of Seller, be given a loading berth as soon as possible but without commitment or obligation by Seller and laytime shall begin on commencement of loading or at 06:00 hours a.m. local time on the first day of the loading date-range, whichever occurs first. 8.5 If the tanker vessel tenders notice of readiness after Seller’s nominated the loading date-range, Seller shall not be obligated to deliver the Crude Oil which should have been loaded on such vessel unless Seller specifically agrees to do so, in which case laytime shall begin on commencement of loading. 8.6 Laytime allowed for loading the tanker vessel shall be increased beyond forty-two (42) hours (and any additional forty-two (42) hours allowed in accordance with Clause 8.2 as the case may be) - for any one of the following reasons only: a. If the condition or facilities of the tanker vessel do not permit loading within the forty-two (42) hours, then adequate time shall be added to permit the loading of the tanker vessel, in which case Xxxxx shall indemnify and reimburse Seller for and against any loss, cost, liability or expense incurred as a result thereof, including, but not limited to, as a result of delay to other vessels. b. If the tanker vessel is secure at the Discharge Pier, whichever shall first occur, provided that the end of said delayed in berthing and uses more than six (6) hours for that purpose after having tendered its notice of readiness, accepted by Seller, and the reason for such delay is beyond the control of Seller, the laytime allowed shall be increased correspondingly, in which case Buyer shall indemnify and reimburse Seller for and against any loss, cost, liability or expense incurred as a result thereof (including, but not limited to, as a result of delay to other vessels) if such berthing delay is not beyond the control of Buyer. c. If, for any reason, Buyer or the master or the owner or the operator of the tanker vessel prevents, obstructs or delays loading (including but not limited to as a result of their failure to comply with the rules and regulations stated in Clause 7.4) fully or partly and at any time, time so lost shall be added to the laytime allowed, and Buyer shall in such case indemnify and reimburse Seller for and against any loss, cost, liability or expense incurred as a result thereof, including, but not limited to, as a result of delay to other vessels. d. If, for any reason of Adverse Weather Conditions or current conditions, berthing and/or loading is delayed or stopped at any time affecting the tanker vessel directly, or indirectly because of delay to other vessels which arrived prior to Buyer’s vessel, time so lost shall be added to the laytime allowed. 8.7 Seller shall pay demurrage for time used for loading in excess of laytime allowed. The rate of demurrage shall be calculated for the actual Cargo size as per the charter party rate payable by Buyer for the tanker vessel at the date of bill of lading, provided such demurrage rate does not exceed Worldscale 100, in which case Worldscale 100 shall apply. Seller’s liability for demurrage under this Agreement shall not exceed the actual demurrage which the Buyer is held liable for under the terms of the charter party, as evidenced by Buyer's documentation to Seller's reasonable satisfaction. 8.8 If there is no charter party or chartering agreement for the tanker vessel, demurrage shall be paid in accordance with the average freight rate assessment (AFRA) effective on the date of bill of lading, provided such demurrage rate does not exceed Worldscale 100, in which case Worldscale 100 shall apply. If AFRA rates cease to be published or cease to be representative, Seller and Buyer shall consult in order to establish an alternative method of assessment. 8.9 If the Seller is, due to Adverse Weather Conditions or Force Majeure, prevented, delayed or hindered from or in obtaining or bringing to the Point of Delivery the Crude Oil required under this Agreement, or any part thereof, or from or in loading the same, then notwithstanding any other provisions of this Agreement any time lost, whether in the commencement, carrying out or completion of the loading, shall not be counted or included in calculating the time taken by the Seller to load such shipment; and any time so lost after the time allowed for loading as hereinbefore provided shall have expired shall not be counted or included in calculating the time in respect of which the Seller is liable for demurrage. 8.10 Seller shall not be liable for demurrage for any delay due to fault or failure of the tanker vessel or its master or crew, or if loading is suspended for tanker vessel's purposes, in which case Buyer shall pay all expenses incurred by Seller as a result thereof. 8.11 The demurrage rates referred to above shall be reduced by fifty (50) percent where demurrage is caused by events such as accidents occurring to equipment affecting the loading from the Point of Delivery or fire in or near the loading installations to the extent that such events do not fall within the Biodiesel Delivery Window. If Seller’s Nominated Vessel tenders NOR before the Biodiesel Delivery Window, the NOR provisions of Clause 13 (Force Majeure). 8.12 Seller shall be effective 00:01 hours local time on discharged and released from all liability for payment of demurrage if claims for demurrage have not been presented to Seller in writing with complete supporting documentation within sixty (60) days from the Biodiesel Delivery Window. Allowable laytime date of the bill of lading under which the claim for demurrage arises. 8.13 Xxxxx’s claim for demurrage, as described in this Clause 8, shall be equal to the total volume of the shipment in barrels, as determined by the Independent Inspector from gauging the receiving or issuing tank(s) in Hawaiian Electric's Receiving Facility, divided by 1,000 barrels per hour plus additional Buyer’s sole remedy for time required for the receiving and discharging of the Pipeline Displacement Medium. Laytime shall cease when the hoses are disconnected. Demurrage shall be payable at a rate equal to Seller’s actual invoiced demurrage cost for each hour used and prorated for each portion of an hour used in excess of allowable laytimelaytime allowed.