1. Payment. Payment terms are subject to change by Seller at any time. If Seller does not receive payment when due, it may impose a late payment charge not to exceed the maximum amount allowed by law and if the account is placed for collection or suit is filed thereon, Seller will be entitled to attorney fees and court costs. PAYMENTS TENDERED IN FULL SETTLEMENT OF A DISPUTED AMOUNT MUST BE CLEARLY LABELED AS SUCH AND SENT BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO: COMMERCIAL CREDIT MANAGER, MARATHON PETROLEUM COMPANY LP, 539 SOUTH MAIN STREET, FINDLAY, OHIO 45840. Seller may set off amounts owed by Buyer to Seller or its subsidiaries or affiliates against amounts owed by Seller to Buyer.
2. Taxes. Buyer will pay, and indemnify Seller for, all taxes, fees, duties, environmental levies, and other charges (whether imposed on manufacture, processing, use, purchase, sale, resale, delivery, receipt, title transfer, inspection, removal from storage, measurement or passage through a measurement device, receipt of payment, or other activity, and regardless of when imposed) relating to Products, or their raw materials or feedstocks. The sole exception to this obligation is taxes based on or measured by Seller’s net income or worth. Upon account set up, Buyer will promptly furnish Seller with the Buyer’s appropriate state tax registration number(s), its federal identification number and any applicable tax exemption certificates. Buyer will promptly inform Seller of any changes to its tax registration or exemption status that may occur after account setup.
3. Delivery. This sale will be F.O.B. the “Ship From” location stated in this Agreement. Title and risk of loss will pass to Buyer at the “Ship From” location as Product passes the barge permanent hose connection. Title and risk of loss will not be affected by Seller’s ownership of the transportation assets, arrangement of shipment, and/or pre-payment or collection of shipment expenses from Buyer. Seller will have no obligation to deliver Product at the “Ship From” location unless Buyer, its agents, and its carriers have entered into, and are in compliance with, agreements governing access to the “Ship From” location.
4. Quantity and Inspection. Quantities will be determined in order of preference: per down gauge measurement of Seller’s static shore tank taken immediately before and after discharge by a mutually agreed upon licensed petroleum inspector; if Seller’s shore tank(s) is active or in the critical zone during loading, Buyer’s static shore tank(s) up gauge measurement, plus any OBQ (on-board quantity), less any ROBQ (remaining on-board quantity,) will be used at discharge by a mutually agreed upon licensed petroleum inspector for quantity determination; if both Seller’s and Buyer’s shore tank(s) is active or in the critical zone during loading and unloading, then the quantity shall be determined by a mutually agreed upon licensed petroleum inspector by taking the average of the barge quantities at load and discharge, taking account for VEF (vessel experience factors), OQB and ROBQ or any other means acceptable by both parties. Quantities will be temperature adjusted to 60 degrees Fahrenheit using built in temperatures compensators or ASTM tables. Either party may require that Product quality be determined by a jointly-selected, licensed petroleum inspector, whose findings will be conclusive. Customary inspection costs will be shared equally, but additional services (including additional quality analyses) will be paid for by the party requesting them. For avoidance of doubt, any quality testing by Buyer on parameters not warranted by Seller will not relieve Buyer of its obligation to perform pursuant to this Agreement
5. Compliance With Laws. Buyer, its agents, and its carriers will comply with all laws, regulations, and standards applicable to the sale, delivery, (including loading, unloading, and/or transloading), transportation, storage, use, and disposition of Products.
6. Safety and Health. Material Safety Data Sheets (MSDS) or Safety Data Sheets (SDS) for Products are available at the following Internet address: http://www.marathonpetroleum.com/brand/products/msds/. Buyer has received Material Safety Data Sheets (or SDS) and other information about the safety and health aspects of Products, will communicate this information to its employees, agents, carriers and
customers, and will require them to further communicate this information in a like manner.
7. Warranties. Seller warrants good title to all Products supplied hereunder at the time of delivery to Buyer and that each Product supplied hereunder will comply with the applicable Seller or attached specifications in effect at the time and place title thereto passes to Buyer. MPC DISCLAIMS ANY AND ALL OTHER WARRANTIES AND REPRESENTATIONS WITH RESPECT TO THE PERFORMANCE OR QUALITY OF PRODUCTS SUPPLIED HEREUNDER INCLUDING, BUT NOT LIMITED TO, ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR BUYER’S PARTICULAR OR INTENDED PURPOSES OR USAGE. Seller will, at its option and its cost (including expense of return and re-delivery), remedy the defect in, replace, or refund the purchase price of, any Product that fails to meet this warranty. THIS IS BUYER’S EXCLUSIVE REMEDY FOR BREACH OF WARRANTY.
8. Claims. All claims must be in writing. Product quality or quantity claims must be delivered to Seller within 30 days after delivery of the Product, and all other claims by Buyer must be delivered to Seller within 60 days after the event giving rise to the claim. Buyer will preserve, and permit Seller to inspect and sample, the subject Product. ANY LAWSUIT AGAINST SELLER WHICH INVOLVES THIS AGREEMENT OR THE SALE OF PRODUCTS MUST BE BROUGHT WITHIN ONE YEAR AFTER THE CAUSE OF ACTION ACCRUES.
9. Limitation of Liability. IN NO EVENT WILL SELLER’S LIABILITY FOR DAMAGES (WHETHER ARISING FROM BREACH OF CONTRACT OR WARRANTY, NEGLIGENCE, STRICT LIABILITY, OR OTHERWISE) EXCEED THE PURCHASE PRICE OF THE PRODUCT CONCERNED NOR WILL SELLER BE LIABLE FOR PUNITIVE, INCIDENTAL, CONSEQUENTIAL, OR SPECIAL DAMAGES (INCLUDING LOST PROFITS), EVEN IF ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.
10. Force Majeure and Allocation. Neither party will be liable to the other for any delay or failure in performance (other than to make payments when due) to the extent that it is caused by circumstances beyond its reasonable control, or by fire; explosion; flood; earthquake; storm; act of God; mechanical breakdown; sabotage or vandalism; strike or other labor disturbance (Seller will not be required to settle a labor dispute or take an action that might involve it in a labor dispute); shortages of, or delays in obtaining, crude oil, feedstocks, raw materials or finished products, equipment, labor, transportation, or storage; interruption of utility services; or compliance with any law, regulation or order (regardless of validity) of any governmental or military authority. Further, if Seller at any time decides that its Product supply is insufficient to meet the actual or forecasted needs of Seller, its divisions and subsidiaries, and its and their customers (whether under contract or not), Seller may allocate its supply among all of them in any fair and reasonable manner determined by Seller.
11. Indemnity. Buyer, its employees, workmen, agents, servants, contractors, or Vessel, as defined below, to comply with the terms and conditions of this Agreement; or (iii) any act or failure to act in the handling, loading, unloading, transloading, storage, transportation, resale, or other use, by Buyer or others, of a Product sold under this Agreement. The only exception to this obligation is when Seller’s negligence or intentional misconduct is determined by a court to be the sole cause of the damage. In responding to any third-party claims, Seller may select an attorney and may enter into any settlement without affecting this obligation.
12. Default. Seller may terminate this Agreement in the event of a material default by Buyer which is not cured within 10 days after notice of default is given. Seller may also terminate this Agreement at once (and Buyer will have no right to cure) if Buyer either fails to pay any amount when due or violates the provisions of paragraph 14 below. The