Common use of QUALITY / CONDITION Clause in Contracts

QUALITY / CONDITION. To be final at time and place of shipment per certificate(s) covering and limited to the items 16 below based on a general representative composite sample covering full quantity loaded taken according to method 17 laid down in FOSFA Standard Contracts method list and issued by a member superintendent of FOSFA. Cost and choice 18 are on Seller’s account. 20 3.1. Laboratory analysis by a FOSFA Analyst Member: 21 Method: 22 • Oil content …………………………………………………………….................... : Basis ………………………… 18.5% AOCS Ac 3 – 44 23 Non-reciprocal allowance of 1% discount for each 1% deficiency, fractions in proportion 24 • Moisture …………………………………………………………………………………. : Maximum ……………….. 14.0% AOCS Ac 2 - 41 26 3.2. Grading by a Superintendent or Analyst Member of FOSFA registered at Brazilian Ministry of Agriculture: 27 28 • Foreign matter ……………………………………………………………………….. : Basis 1.0% 29 Maximum 2.0% 30 Non-reciprocal allowance of 1% discount for each 1% deficiency, fractions in proportion 31 • Damaged beans………………………………………………………………………. : Basis 8.0% 32 Maximum 8.5% 33 Non-reciprocal allowance of 2% discount for each 1% deficiency, fractions in proportion 34 Of which: 35 ▪ Heat Damaged …………………………………. : Maximum 4.0% 36 ▪ Burned ……………………………………………… : Maximum 1.0% 37 ▪ Mouldy …………………………………………….. : Maximum 6.0% 38 • Broken beans : Maximum 30.0% 39 • Greenish beans : Maximum 8.0% 40 • Poisonous seeds/husks : Substantially free 41 within tolerances of: 42 ▪ 1 particle of treated vegetal seeds with unknown level of toxicity for each 1 kg sample at each lot of 5,000 43 metric tons loaded or part thereof. 44 ▪ 1 particle of toxic natural vegetal seeds for each 1 kg sample at each lot of 5,000 metric tons loaded or 45 part thereof. 46 • Castor Seed and/or Castor Seed Husks …………………………………… : Maximum 0.005% 47 for general 48 composite sample 49 50 Grading to be performed according to IN 11/2007 and IN 37/2007 issued by Brazilian Ministry of Agriculture. Any 51 further revision or replacement of these regulations in force at time of loading shall be applied. 53 Other quality/condition in accordance with Brazilian Legislation effective at time and place of shipment. 55 Buyer has the option, at its expense, to appoint a Superintendent, Member of FOSFA and duly registered under the 56 Brazilian Ministry of Agriculture, to perform joint sampling and sealing, provided that the Seller is advised, no later 57 than vessel’s berthing, the name of the Superintendent ▇▇▇▇▇ is appointing. 58 59 If the difference in any of the following items between Certificates issued by ▇▇▇▇▇’s and ▇▇▇▇▇▇’s appointed 60 Superintendent does not exceed the percentages mentioned below, then the results of the Superintendent appointed 61 by Seller will be final and binding on the parties. 62 ▪ Moisture 0.5% 63 ▪ Foreign Matter 0.2%, 64 ▪ Damaged Beans 0.5% 65 ▪ Heat Damaged 0.5% 66 ▪ Burned 0.10% 67 ▪ Mouldy 0.5% 68 ▪ Greenish beans 0.5% 69 Otherwise, at either party’s option exercised no later than 45 days from the BL date and at its expense, a third test 70 shall be carried out as per following procedure and the average of the 2 closest analysis results shall be final and 71 binding on the parties under this contract. 72 73 Any allowances shall be settled by a complementary debit note. 74 75 The requesting party shall inform the other party about its decision to request a third test, by submitting a list 76 containing the names of three laboratories and/or superintendents, as the case may be, and the other party shall 77 confirm within no later than three business days which of these three laboratories (and/or superintendents) the 78 requesting party shall appoint for conducting the third test. 80 In case the counterparty fails to respond, the requesting party has the right to proceed and appoint any of the three 81 laboratories (or superintendents). 82 • The test shall be performed on a contractual composite (aggregate) sample counter-sealed by Seller’s and ▇▇▇▇▇’s 83 appointed Superintendents; 84 • For laboratory analysis, the chosen laboratory and/or Superintendent shall be an independent laboratory and/or 85 Superintendent chosen as mentioned above and recognized as a FOSFA Analyst Member who shall perform the 86 tests following the methodology established on this contract. 87 • For grading analysis, the laboratory or superintendent chosen as described above shall also be recognized as a 88 FOSFA Analyst Member duly registered under Brazilian Ministry of Agriculture and shall perform the tests following 89 the standards established in this contract. 90 91 The request of a third test shall not entitle Buyers to refuse or delay the payment of shipping documents in accordance 92 with clause 14.

QUALITY / CONDITION. To be final at time and place of shipment per certificate(s) covering and limited to the items 16 13 below based on a general representative composite sample covering full quantity loaded taken according to method 17 laid down in FOSFA Standard Contracts method list GAFTA Sampling 14 Rules 124 and issued by a member superintendent Superintendent Member of FOSFAGAFTA. Cost and choice 18 are on Seller’s account. 20 . 16 3.1. Laboratory analysis by a FOSFA Analyst Memberanalysis: 21 Method: 22 17 • Oil content …Moisture ………………………………………………………….................... . : Basis ………………………… 18.5Maximum 13.50% AOCS Ac 3 – 44 23 Non-reciprocal allowance of 1% discount for each 1% deficiency, fractions in proportion 24 ISO 712 18 • Moisture ………Aflatoxin …………………………………………………………………………. : Maximum ……………….. 14.0% AOCS Ac 2 - 41 26 20PPB HPLC 20 3.2. Grading by a Superintendent or Analyst Member of FOSFA GAFTA registered at Brazilian Ministry of Agriculture: 27 28 21 • Impurities, fragments and Foreign matter Matter ………. : Maximum 2.0% 22 • Damaged ……………………………………………………………….. : Basis 1.0% 29 Maximum 2.0% 30 Non-reciprocal allowance of 1% discount for each 1% deficiency, fractions in proportion 31 • Damaged beans………………………………………………………………………. : Basis 8.0% 32 Maximum 8.5% 33 Non-reciprocal allowance of 2% discount for each 1% deficiency, fractions in proportion 34 Of which: 35 ▪ Heat Damaged …………………………………. : Maximum 4.0% 36 ▪ Burned ……………………………………………… : Maximum 1.011.0% 37 ▪ Mouldy of which 23 o Heat/sprout damaged kernels …….……………………………………….. …… : Maximum 6.03.0% 38 • 24 o Broken beans : Maximum 30.0% 39 • Greenish beans : Maximum 8.0% 40 • Poisonous seeds/husks : Substantially free 41 within tolerances of: 42 ▪ 1 particle of treated vegetal seeds with unknown level of toxicity for each 1 kg sample at each lot of 5,000 43 metric tons loaded or part thereof. 44 ▪ 1 particle of toxic natural vegetal seeds for each 1 kg sample at each lot of 5,000 metric tons loaded or 45 part thereof. 46 • Castor Seed and/or Castor Seed Husks Kernels …………………………………… : Maximum 0.0056.0% 47 for general 48 composite sample 49 50 25 • Damaged by insects ……………………………………….. : Maximum 3.0% 26 • Free from poisonous seeds/husks but 27 ▪ castor seed and/or 28 castor seed husks ………………………………. : Maximum 0.10% 30 Grading to be performed according to IN 11/2007 and IN 37/2007 Portaria 268/1984 issued by Brazilian Ministry of Agriculture. Any 51 further revision 31 or replacement of these regulations in force at time of loading shall be applied. 53 33 Other quality/condition in accordance with Brazilian Legislation effective at time and place of shipment. 55 35 Buyer has the option, at its expense, to appoint a Superintendent, Member of FOSFA GAFTA and duly registered under the 56 36 Brazilian Ministry of Agriculture, to perform joint sampling and sealing, provided that the Seller is advised, no later 57 than 37 vessel’s berthing, the name of the Superintendent ▇▇▇▇▇ is appointing. 58 59 38 If the difference in any of the following items between Certificates issued by ▇▇▇▇▇’s and ▇▇▇▇▇▇’s appointed 60 Superintendent 39 does not exceed the percentages mentioned below, then the results of the Superintendent appointed 61 by Seller ▇▇▇▇▇▇ will be final 40 and binding on the parties. 62 41 ▪ Moisture 0.5% 63 ▪ Foreign Matter 0.2%, 64 ▪ Damaged Beans 0.5% 65 ▪ Heat Damaged 0.5% 66 ▪ Burned 0.10% 67 ▪ Mouldy 0.5% 68 ▪ Greenish beans 0.5% 69 Not applicable 42 43 Otherwise, at either party’s option exercised no later than 45 days from the BL date and at its expense, a third test 70 shall 44 be carried out as per following procedure and the average of the 2 closest analysis results shall be final and 71 binding on the 45 parties under this contract. 72 73 47 Any allowances shall be settled by a complementary debit note. 74 75 49 The requesting party shall inform the other party about its decision to request a third test, by submitting a list 76 containing 50 the names of three laboratories and/or superintendents, as the case may be, and the other party shall 77 confirm within no 51 later than three business days which of these three laboratories (and/or superintendents) the 78 requesting party shall 52 appoint for conducting the third test. 80 54 In case the counterparty fails to respond, the requesting party has the right to proceed and appoint any of the three 81 55 laboratories (or superintendents). 82 56 57 • The test shall be performed on a contractual composite (aggregate) sample counter-sealed by Seller’s and ▇▇▇▇▇’s 83 58 appointed Superintendents; 84 Superintendent. 59 • For laboratory analysis, the chosen laboratory and/or Superintendent shall be an independent laboratory and/or 85 60 Superintendent chosen as mentioned above and recognized as a FOSFA GAFTA Analyst Member who shall perform the 86 tests 61 following the methodology established on this contract. 87 • For grading analysis, the laboratory or superintendent chosen as described above shall also be recognized as a 88 FOSFA Analyst Member duly registered under Brazilian Ministry of Agriculture and shall perform the tests following 89 the standards established in this contract. 90 91 The request of a third test shall not entitle Buyers to refuse or delay the payment of shipping documents in accordance 92 with clause 14.