Document:

Unassociated Document

    Exhibit
10.15

     

    

     

    *
ALL CONTRACTUAL CORRESPONDENCE TO BE FAXED TO (65) 6738 4326 *

     

    
      
        
          
            
              
                
                  
                    	
                            TO

                          	
                            :

                          	
                            MISSION
      BIOTECHNOLOGIES SDN BHD

                          
	 	 	 
	
                            ATTN

                          	
                            :

                          	
                            CONTRACT
      ADMINISTRATION T. VENTHAN NORWATI DAUD

                          
	 	 	 
	
                            FAX

                          	
                            :

                          	
                            (603)
      7960 8771

                          
	 	 	 
	
                            EMAIL

                          	
                            :

                          	
                            NATHAN@MISSIONNEWENERGY.COM

                            VASU@MISSIONNEWENERGY.COM

                            STEPHEN@STARSUPPLY.CH

                          
	 	 	 
	
                            DATE

                          	
                            :

                          	
                            23RD
      MARCH 2009

                          
	 	 	 
	
                            RE

                          	
                            :

                          	
                            OUR
      CONTRACT NO. 177016 /
217554

                          

                  

                

              

            

          

        

      

    

     

    WE REFER
TO OUR REVISED CONTRACT DATED 14TH JANUARY
2009.  FURTHER TO BOTH PARTIES MUTUAL AGREEMENT, PLEASE NOTE THE
FOLLOWING AMENDMENTS:

     

    2.           BUYER

     

    PLEASE
INSERT "FOR ALL CARGO DELIVERY DURING 1ST MARCH
TO 31ST
DECEMBER 2009, ALL CORRESPONDENCE TO BE DIRECTED TO SELLER'S SINGAPORE SERVICE
COMPANY:

     

    TRAFIGURA
PTE LTD

    501
ORCHARD ROAD

    HEX 10-01
WHEELOCK PLACE

    SINGAPORE
238880

     

    FOR
TELEPHONE AND FACSIMILE NUMBERS PLEASE SEE THE NOTIFICATIONS
SECTION."

     

    6.           QUANTITY
AND TERM

     

    PLEASE
INSERT "THE BALANCE QUANTITY FROM 1ST MARCH
TO 31ST
DECEMBER 2009 SHALL NOW TOTAL 32,000 METRIC TONS PLUS / MINUS 5 PERCENT AT
BUYER'S OPTION AS FOLLOWS:

     

    
      
        
          	
                  LOADING MONTH

                	
                  QUANTITY

                
	
                  1ST
      TO 31ST
      MARCH 2009

                	
                  5,000
      METRIC TON +/- 5% AT BUYER'S OPTION

                
	
                  1ST
      TO 30TH
      APRIL 2009

                	
                  5,000
      METRIC TON +/- 5% AT BUYER'S OPTION

                
	
                  1ST
      TO 31ST
      MAY 2009*

                	
                  4,000
      METRIC TON +/- 5% AT BUYER'S OPTION

                
	
                  1ST
      TO 30TH
      JUNE 2009*

                	
                  4,000
      METRIC TON +/- 5% AT BUYER'S OPTION

                
	
                  1ST
      TO 31ST
      JULY 2009*

                	
                  4,000
      METRIC TON +/- 5% AT BUYER'S OPTION

                
	
                  1ST
      TO 31ST
      AUGUST 2009*

                	
                  4,000
      METRIC TON +/- 5% AT BUYER'S OPTION

                
	
                  1ST
      SEPTEMBER TO 30TH
      OCTOBER 2009*

                	
                  3,000
      METRIC TON +/- 5% AT BUYER'S OPTION

                
	
                  1ST
      NOVEMBER TO 31ST
      DECEMBER 2009**

                	
                  3,000
      METRIC TON +/- 5% AT BUYER'S
OPTION

                

        

      

    

    

     

    * BUYER
HAS THE OPTION TO INCREASE QUANTITY TO 5,000 METRIC TONS AT CONTRACT PRICE UPON
NOMINATION.

     

    
      
        
        

         

      

      
         

        
          

        

      

      
         

      

    

    

     

    **BUYER
HAS THE OPTION TO COMBINE THE SEPTEMBER/OCTOBER AND NOVEMBER/DECEMBER PARCEL(S)
TO ONE CARGO LOT OF 6,000 METRIC TON TO BE AGREED 60 DAYS CALENDAR DAYS PRIOR TO
THE FIRST DAY OF THE MONTH OF SHIPMENT."

     

    9.           PRICE

     

    AFTER
PARAGRAPH 1, PLEASE INSERT "FOR ALL CARGO DELIVERY DURING 1ST APRIL
TO 31ST
DECEMBER 2009, THE FOB KUANTAN, MALAYSIA PRICE IN US DOLLARS PER METRIC TON
BASED ON BILL OF LADING QUANTITY AS DETERMINED UNDER THE QUANTITY AND QUALITY
CLAUSE HEREIN SHALL BE EQUAL TO THE FRONT MONTH PENINSULAR MONTHLY AVERAGE CRUDE
PALM OIL PRICE AS PUBLISHED BY THE MALAYSIAN PALM OIL BOARD (MPOB) FOR THE
APPLICABLE PRICING PERIOD PLUS A PREMIUM OF US DOLLARS 140.00 (ONE HUNDRED AND
FORTY POINT ZERO ZERO PER METRIC TON)."

     

    10.           PAYMENT

     

    AFTER
PARAGRAPH 1 PLEASE INSERT "FOR ALL CARGO DELIVERY DURING 1ST MARCH
TO 31ST
DECEMBER 2009, AS SECURITY FOR EACH PARTY'S PERFORMANCE OBLIGATIONS AND
LIABILITIES TO THE OTHER PARTY ARISING OUT OF OR RELATING TO THIS AGREEMENT,
EACH PARTY SHALL PROVIDE TO THE OTHER PARTY NOT LATER THAN 10 (TEN) DAYS OF
CONTRACT CONFIRMATION, AN IRREVOCABLE PERFORMANCE BOND AND IN THE AMOUNT OF U.S.
DOLLARS 940,000.00 (USD NINE HUNDRED AND FORTY THOUSAND POINT ZERO ZERO),
PAYABLE AT THE COUNTERS OF THE RESPECTIVE BANK AS PER THE FORMAT ATTACHED
HEREIN."

     

    26.           NOTIFICATIONS

     

    PLEASE
INSERT "FOR ALL CARGO DELIVERY DURING 1ST MARCH
TO 31ST
DECEMBER 2009, ANY CONTRACTUAL, OPERATIONAL FINANCIAL, OR PRICING NOTIFICATIONS
FROM SELLER TO BUYER TO BE MADE TO THE FOLLOWING CONTACTS:

     

    BUYER

     

    CONTRACTS

    ALICE
ONG/JASMINE GOH/MILTON WONG

    EMAIL:
CONTRACTADMINSINGAPORE@TRAFIGURA.COM

    TEL: (65)
6319 2976/(65) 6517 4612/(65) 6416 2438

    FAX: (65)
6738 4326

     

    OPERATIONS

    DANIEL
TAN/DMITRY AKOPOV

    EMAIL:
SINGAPOREBIODIESELOPERATIONS@TRAFIGURA.COM

    TEL (65)
6517 4642/(65) 6319 2965

    FAX: (65)
6734 9448

     

    FINANCIAL
CONTACT

    AMANDA
YOUNG

    TEL: (44
20) 7009 1698

    FAX: (44
20) 7170 7816"

     

    ALL
OTHER TERMS AND CONDITIONS NOT MENTIONED ABOVE SHALL REMAIN UNCHANGED PER OUR
CONTRACT DATED 14TH JANUARY
2009.

     

    
      
        
        

         

      

      
         

        
          

        

      

      
         

      

    

     

    WITH THE
ABOVE AMENDMENTS INCORPORATED, WE ARE PLEASED TO CONCLUDE THIS BUSINESS WITH
YOU.  PLEASE CONFIRM YOUR AGREEMENT BY RETURN FAX, ABSENT YOUR REPLY
TO THE CONTRARY WE WILL ASSUME YOUR AGREEMENT AND CLOSE THIS FILE.

     

     

    BEST
REGARDS

     

    TRAFIGURA
BEHEER B.V. AMSTERDAM

    BRANCH
OFFICE LUCERNE

     

    

     

    

     

    

     

    
      
        
           

        

         

      

      
         

        
          

        

      

      
         

      

    

    

     

    
      1.           THIS
CONTRACT CANCELS AND SUPERSEDES ALL PREVIOUSLY CONTRACTUAL CORRESPONDENCE
BETWEEN OUR TWO PARTIES AND WILL BE THE GOVERNING AND CONTRACTUAL DOCUMENT FOR
THIS TRANSACTION.

    

     

    
      
        
          
            
              
                
                  
                    	
                            TO

                          	
                            :

                          	
                            MISSION
      BIOTECHNOLOGIES SDN BHD

                          
	
                            ATTN

                          	
                            :

                          	
                            CONTRACT
      ADMIN – T.VENTHAN / NORWATI DAUD

                          
	
                            FAX

                          	
                            :

                          	
                            +60
      3 7960 8771

                          
	 	 	 
	
                            CC

                          	
                            :

                          	
                            NATHAN@MISSIONNEWENERGY.COM

                            VASU@MISSIONNEWENERGY.COM

                          
	 	 	 
	
                            CC

                          	
                            :

                          	
                            TRAFIGURA
      LTD.

                          
	
                            ATTN

                          	
                            :

                          	
                            CONTRACT
      ADMIN: LUCY CLARK-WARD/ALANA THOMPSON

                          
	
                            FAX

                          	
                            :

                          	
                            +44
      207 170 7818

                          
	
                            E-MAIL

                          	
                            :

                          	
                            CONTRACTADMINISTRATIONS@TRAFIGURA.COM

                          
	 	 	 
	
                            DATE

                          	
                            :

                          	
                            14TH
      JANUARY 2009

                          
	 	 	 
	
                            RE

                          	
                            :

                          	
                            OUR
      CONTRACT NO. 177016

                            YOUR
      CONTRACT NO. (PLEASE
CONFIRM)

                          

                  

                

              

            

          

        

      

IN THE
EVENT THAT BOTH BUYER AND BROKER ISSUE CONTRACTS FOR THE ABOVE REFERENCED DEAL,
THE BUYER'S CONTRACT CANCELS AND SUPERSEDES ANY BROKER CORRESPONDENCE IN
RELATION TO THIS AGREEMENT.  THE BROKER'S CONTRACT SHALL BE FOR THE
SOLE PURPOSE OF DOCUMENTING COMMISSION, IF ANY.

     

    TRAFIGURA
BEHEER B.V. AMSTERDAM, BRANCH OFFICE LUCERNE IS PLEASED TO CONFIRM THE FOLLOWING
FOB PURCHASE TRANSACTION
CONCLUDED BETWEEN OUR TWO COMPANIES ON 17TH JULY
2008.

     

    
      2.           SELLER

    

     

    MISSION
BIOTECHNOLOGIES SDN BHD

    C-26-05

    3 TWO
SQUARE

    NO 2,
JALAN 19/1

    46300
PETALING JAYA

    MALAYSIA

    TEL:          (603)
7960 8770

    FAX:         (603)
7960 8771

     

    
      3.           BUYER

    

     

    TRAFIGURA
BEHEER B.V. AMSTERDAM,

    BRANCH
OFFICE LUCERNE

    ZÜRICHSTRASSE
5

    CH-6002
LUCERNE

    SWITZERLAND

    FAX NO:
(41) 41 419 4344

    TEL NO:
(41) 41 419 4343

    TELEX:
868001 TRAF CH

     

    THE
SELLER MUST DIRECT ALL OPERATIONAL CORRESPONDENCE TO THE BUYER'S GENEVA SERVICE
COMPANY:

     

    
      
        
           

        

         

      

      
         

        
          

        

      

      
         

      

    

    

     

    TRAFIGURA
BEHEER B.V. AMSTERDAM

    BRANCH
OFFICE GENEVA

    15 RUE
PIERRE FATIO

    1204
GENEVA

    SWITZERLAND

     

    FOR
TELEPHONE, FAX, AND TELEX NUMBERS PLEASE SEE THE NOTIFICATIONS
SECTION.

     

    
      4.           PRODUCT

    

     

    PALM
METHYL ESTER (PME)

     

    
      5.           QUALITY

    

     

    
      
        
          	
                  PARAMETERS

                	
                  UNIT

                	
                  LIMITS

                
	
                  TOTAL
      ESTER CONTENT

                	
                  (%,
      M/M)

                	
                  96.5
      MINIMUM

                
	
                  DENSITY
      @ 15OC

                	
                  (G/CM3)

                	
                  0.860
      – 0.900

                
	
                  VISCOSITY
      AT 40OC

                	
                  (MM2/S)

                	
                  3.5
      – 5.0

                
	
                  FLASH
      POINT

                	
                  (OC)

                	
                  120
      MINIMUM

                
	
                  SULFUR
      CONTENT

                	
                  (MG/KG)

                	
                  10
      MAXIMUM

                
	
                  CARBON
      RESIDUE

                	
                  (%,
      M/M)

                	
                  0.3
      MAXIMUM

                
	
                  (ON
      10% DISTILLATION RESIDUE)

                
	
                  CETANE
      NUMBER

                	 
      	
                  51
      MINIMUM

                
	
                  SULFATED
      ASH CONTENT

                	
                  (%,
      M/M)

                	
                  0.02
      MAXIMUM

                
	
                  MOISTURE

                	
                  (PPM)

                	
                  350
      MAXIMUM

                
	
                  TOTAL
      CONTAMINATION

                	
                  (MG/KG)

                	
                  24
      MAXIMUM

                
	
                  COPPER
      STRIP CORROSION,

                  3H
      AT 50OC

                	
                  (RATING)

                	
                  CLASS
      1

                
	
                  OXIDATIVE
      STABILITY, 110OC

                	
                  (HOURS)

                	
                  6.0
      MINIMUM

                
	
                  ACID
      VALUE

                	
                  (MG
      KOH/G)

                	
                  0.50
      MAXIMUM

                
	
                  IODINE
      VALUE

                	
                  (G
      IODINE /100G)

                	
                  120
      MAXIMUM

                
	
                  LINOLENIC
      ACID

                	
                  (%,
      M/M)

                	
                  12
      MAXIMUM

                
	
                  METHYLESTER

                	 
      	 
      
	
                  POLYUNSATURATED

                	
                  (%,
      M/M)

                	
                  1
      MAXIMUM

                
	
                  (>=4
      DOUBLE BOND)

                	 
      	 
      
	
                  METHYLESTER

                	 
      	 
      
	
                  METHANOL
      CONTENT

                	
                  (%,
      M/M)

                	
                  0.2
      MAXIMUM

                
	
                  MONOGLYCERIDE

                	
                  (%,
      M/M)

                	
                  0.8
      MAXIMUM

                
	
                  DIGLYCERIDE

                	
                  (%,
      M/M)

                	
                  0.2
      MAXIMUM

                
	
                  TRIGLYCERIDE

                	
                  (%,
      M/M)

                	
                  0.2
      MAXIMUM

                
	
                  FREE
      GLYCEROL

                	
                  (%,
      M/M)

                	
                  0.02
      MAXIMUM

                
	
                  TOTAL
      GLYCEROL

                	
                  (%,
      M/M)

                	
                  0.25
      MAXIMUM

                
	
                  GROUP
      I METALS, NA + K

                	
                  (MG/KG)

                	
                  5
      MAXIMUM

                
	
                  GROUP
      II METALS, CA + MG

                	
                  (MG/KG)

                	
                  5
      MAXIMUM

                
	
                  PHOSPHORUS
      CONTENT

                	
                  (MG/KG)

                	
                  10
      MAXIMUM

                
	
                  CFPP

                	
                  (OC)

                	
                  12
      MAXIMUM

                

        

      

    

    

     

    PRODUCT
TO BE SHIPPED UNDER A NITROGEN BLANKET

     

    PRODUCT
MUST NOT CONTAIN PETROCHEMICAL RESIDUES OR SPENT CHEMICALS, INCLUDING BUT NOT
LIMITED TO CAUSTICS AND ACIDS.

     

    GOODS
MUST BE OF MERCHANTABLE QUALITY AND FIT FOR INTENDED PURPOSE

     

    
      
        
           

        

         

      

      
         

        
          

        

      

      
         

      

    

    

     

    
      6.           SUSTAINABILITY
CLAUSE

    

     

    THE
SUPPLIER WILL REJECT ANY FEEDSTOCK ISSUED FROM POOR FARMING PRACTICES (CAUSING
INCLUDING BY WAY OF EXAMPLE BUT NOT LIMITED TO DEFORESTATION, USE OF ABUSIVE
CHILD LABOUR, IRRESPONSIBLE USE OF PESTICIDES)

     

    IF PALM
OIL IS USED, THE SUPPLIER SHALL PROCURE PALM OIL FROM MEMBERS OF THE
RSPO.

     

    
      7.           QUANTITY
AND TERM

    

     

    5,000 –
7,000 METRIC TONS MIN/MAX AT BUYERS OPTION PER CALENDAR MONTH TO BE DELIVERED
DURING 01ST JANUARY
2009 – 31ST
DECEMBER 2009.

     

    ACTUAL
QUANTITY TO BE DECLARED BY BUYER LATEST 30 CALENDAR DAYS PRIOR TO THE FIRST DAY
OF THE MONTH OF SHIPMENT.  A TOLERANCE OF PLUS OR MINUS 5 PCT IN
BUYER'S OPTION SHALL APPLY TO THE ACTUAL VOLUME DECLARED BY BUYER.

     

    
      8.           DELIVERY

    

     

    IN ONE
CARGO LOT, HOMOGENEOUS THROUGHOUT VESSEL'S TANKS FOB ONE SAFE AND ALWAYS
ACCESSIBLE BERTH / PORT KUANTAN, MALAYSIA PER BUYER'S NOMINATED VESSEL, ARRIVING
WITHIN THE PERIOD NOMINATED BY BUYER IN ACCORDANCE WITH THE BELOW ("AGREED
DELIVERY PERIOD") AS FULL OR PART CARGO AT BUYERS' OPTION

     

    BUYER TO
NOMINATE A 10-DAY DELIVERY WINDOW LATEST 20 CALENDAR DAYS PRIOR TO THE FIRST DAY
OF THE 10-DAY DELIVERY WINDOW.

     

    SUBJECT
TO THE PROVISIONS OF CLAUSE 8 BELOW, IN THE EVENT THAT THE BUYER ARRIVES OUTSIDE
THE 10-DAY DELIVERY WINDOWS NOMINATED FOR DELIVERIES DURING 01ST APRIL –
31ST
DECEMBER 2009, BUYER SHALL BE RESPONSIBLE FOR ALL THE ADDITIONAL STORAGE COST
(USD 8.20/MT/14DAYS) AT THE BULKING FACILITY

     

    NOTWITHSTANDING
ANY PROVISION OF THIS CONTRACT OR RULE OF LAW TO THE CONTRARY, THE BUYER SHALL
HAVE COMPLIED WITH ITS OBLIGATION UNDER THIS CLAUSE PROVIDED THAT THE VESSEL
TENDERS NOR ON OR BEFORE 23:59 (LOCAL TIME) ON THE LAST DAY OF THE AGREED
ARRIVAL PERIOD.

     

    
      9.           NOMINATION

    

     

    SELLER TO
GIVE ACCEPTANCE OF NOMINATED (OR SUBSTITUTE) VESSEL WITHOUT DELAY - SUCH
ACCEPTANCE NOT TO BE UNREASONABLY WITHHELD.

     

    BUYER
SHALL HAVE THE RIGHT TO SUBSTITUTE AT ANY TIME PRIOR TO COMMENCEMENT OF
LOADING.

     

    
      10.           PRICE

    

     

    THE FOB
KUANTAN, MALAYSIA PRICE IN US DOLLARS PER METRIC TONNE BASED ON BILL OF LADING
QUANTITY AS DETERMINED UNDER THE QUANTITY AND QUALITY CLAUSE HEREIN SHALL BE
EQUAL TO THE FRONT MONTH PENINSULAR MONTHLY AVERAGE CRUDE PALM OIL PRICE AS
PUBLISHED BY THE MALAYSIAN PALM OIL BOARD (MPOB) FOR THE APPLICABLE PRICING
PERIOD PLUS A PREMIUM OF US DOLLARS 125.00 (ONE HUNDRED AND TWENTY FIVE POINT
ZERO ZERO) PER METRIC TONNE.

     

    
      
        
           

        

         

      

      
         

        
          

        

      

      
         

      

    

    

     

    BUYER HAS
THE OPTION TO CHOOSE BETWEEN THE FRONT MONTH PENINSULAR MONTHLY AVERAGE CRUDE
PALM OIL PRICE FOR ALL DAILY QUOTATIONS PUBLISHED DURING THE NOMINATED MONTH OF
B/L ("M") OR ALL DAILY QUOTATIONS PUBLISHED DURING THE MONTH IMMEDIATELY FALLING
THE NOMINATED MONTH OF B/L ("M + 1").  THIS OPTION WILL BE DECLARED BY
THE BUYER ON THE DATE OF THE BILL OF LADING (BY COB EUROPEAN TIME).

     

    SELLER
WILL USE THE CONVERSION FROM MALAYSIAN RINGGIT TO US DOLLARS BASIS THE AVERAGE
OF THE EXCHANGE RATES PUBLISHED BY THE ASIAN WALL STREET JOURNAL ON EACH PRICING
DAY OF THE APPLICABLE PRICING PERIOD.

     

    THE FINAL
PRICE SHALL BE EXPRESSED TO TWO (2) DECIMAL PLACES.

     

    
      11.           PAYMENT

    

     

    AS
SECURITY FOR EACH PARTY'S PERFORMANCE OBLIGATIONS AND LIABILITIES TO THE OTHER
PARTY ARISING OUT OF OR RELATING TO THIS AGREEMENT AND TRAFIGURA AGREEMENT REF #
183599, EACH PARTY SHALL PROVIDE TO THE OTHER PARTY NOT LATER THAN 01ST
DECEMBER, 2008, AN IRREVOCABLE PERFORMANCE BOND AND IN THE AMOUNT OF TWO MILLION
U.S. DOLLARS (U.S. $2,000,000.00), PAYABLE AT THE COUNTERS OF THE RESPECTIVE
BANK AS PER THE FORMAT ATTACHED HEREIN.

     

    EACH
PARTY'S PERFORMANCE BOND SHALL REMAIN EFFECTIVE THROUGH TO 20 DAYS AFTER THE
LAST DELIVERY DATE I.E. 20TH JANUARY
2010 AND EACH PARTY SHALL BE ENTITLED TO DRAW ON THE OTHER PARTY'S PERFORMANCE
BOND IN THE EVENT THAT EITHER PARTY INCURS DAMAGES ON ACCOUNT OF THE OTHER
PARTY'S FAILURE TO PERFORM OR IN THE EVENT THAT ANY AMOUNT THAT MAY BE DUE AND
OWING FROM ONE PARTY TO THE OTHER IS NOT PAID IN FULL ON THE DUE
DATE.

     

    BY
REVOLVING LC IN US DOLLARS NET CASH, WITHOUT WITHHOLD, OFFSET, COUNTERCLAIM OR
DEDUCTION WHATSOEVER INTO SELLER'S NOMINATED BANK ACCOUNT WITH FULL VALUE AT
SIGHT OF THE FOLLOWING DOCUMENTS FOR EACH RESPECTIVE DELIVERY:

     

    
      
        
          	
                  (A).

                	
                  SELLER'S
      COMMERCIAL INVOICE (TELEX / FAX
ACCEPTABLE).

                

        

      

    

    
      
        	
                
                  (B).

                

              	
                
                  CERTIFICATE
      OF QUALITY AND / OR INDEPENDENT INSPECTORS QUALITY REPORT AT LOADPORT
      (TELEX / FAX
ACCEPTABLE).

                

              

      

    

    
      
        	
                
                  (C).

                

              	
                
                  CERTIFICATE
      OF QUANTITY AND / OR INDEPENDENT INSPECTORS QUANTITY REPORT AT LOADPORT
      (TELEX / FAX
ACCEPTABLE).

                

              

      

    

    
      
        	
                
                  (D).

                

              	
                
                  3/3
      ORIGINAL BILLS OF LADING ISSUED TO OR ENDORSED TO ORDER OF
      BUYER.

                

              

      

    

    
      
        	
                
                  (E).

                

              	
                
                  ORIGINAL
      CERTIFICATE OF ORIGIN

                

              

      

    

     

    IF
DOCUMENTS (D) AND / OR (E) ARE NOT AVAILABLE AT PAYMENT DUE DATE, THEN SELLER
SHALL PRESENT:

     

    
      
        
          	
                  (A).

                	
                  SELLERS'
      COMMERCIAL INVOICE (TELEX OR FAX
ACCEPTABLE)

                

        

      

    

    
      
        	
                
                  (B).

                

              	
                
                  DOCUMENTS
      (B) AND (C) ABOVE

                

              

      

    

    
      
        	
                
                  (C).

                

              	
                
                  SELLERS'
      LETTER OF INDEMNITY (TELEX OR FAX ACCEPTABLE) COUNTERSIGNED BY A FIRST
      CLASS INTERNATIONAL BANK ACCEPTABLE TO BUYER IN THE FOLLOWING
      FORM:

                

              

      

    

     

    QUOTE

     

    
      
        
           

        

         

      

      
         

        
          

        

      

      
         

      

    

    

     

    DEAR
SIRS,

     

    WE REFER
TO A CARGO OF [QUANTITY] OF [PRODUCT] LOADED ON BOARD VESSEL
[     ] PURSUANT TO BILLS OF LADING DATED
[                ]
200[   ].

     

    ALTHOUGH
WE SOLD THE SAID CARGO TO YOURSELVES, WE HAVE BEEN UNABLE TO PROVIDE YOU WITH
THE FULL SET OF ORIGINAL 3/3 CLEAN ON BOARD BILLS OF LADING AND OTHER ORIGINAL
SHIPPING DOCUMENTS COVERING THE SAID SALE.

     

    IN
CONSIDERATION OF YOUR PAYING THE FULL PURCHASE PRICE OF USD
[     ] WITH VALUE
[                ],
WE HEREBY EXPRESSLY WARRANT THAT WE HAVE FULL MARKETABLE TITLE TO THE GOODS,
FREE OF ANY SECURITY INTEREST, LIEN OR ENCUMBRANCES, AND THAT WE TRANSFER SUCH
TITLE TO YOU, THAT WE HAVE THE FULL RIGHT AND AUTHORITY TO EFFECT DELIVERY OF
THE SAID CARGO, AND THAT YOU WILL ENJOY QUIET POSSESSION OF THE SAID CARGO [AND
THAT THE ORIGIN OF THE CARGO IS [     ]].

     

    WE
FURTHER AGREE TO LOCATE AND SURRENDER TO YOU, AS SOON AS POSSIBLE, THE FULL SET
OF ORIGINAL BILLS OF LADING AND OTHER ORIGINAL SHIPPING DOCUMENTS AND TO
PROTECT, INDEMNIFY AND HOLD YOU HARMLESS FROM ANY AND ALL DAMAGES, COSTS AND
EXPENSES (INCLUDING ATTORNEY FEES) WHICH YOU MAY SUFFER BY REASON OF ANY BREACH
OF THE AFORESAID WARRANTIES AND/OR THE FULL SET 3/3 ORIGINAL BILLS OF LADING AND
OTHER SHIPPING DOCUMENTS NOT BEING AVAILABLE AND/OR REMAINING OUTSTANDING,
INCLUDING BUT NOT LIMITED TO, ANY CLAIMS AND DEMANDS WHICH MAY BE MADE BY A
HOLDER OR TRANSFEREE OF THE ORIGINAL BILLS OF LADING AND OTHER ORIGINAL SHIPPING
DOCUMENTS OR BY ANY THIRD PARTY CLAIMING AN INTEREST IN, RIGHT TO, OR LIEN ON
THE CARGO OR THE PROCEEDS THEREOF OR RECEIVER IN REJECTING THE
CARGO.

     

    THIS
LETTER OF INDEMNITY SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF ENGLAND AND EACH PARTY EXPRESSLY SUBMITS TO THE EXCLUSIVE JURISDICTION
OF THE ENGLISH COURTS IN LONDON.

     

    UNQUOTE

     

    IF THE
FINAL UNIT PRICE IS NOT AVAILABLE BEFORE THE PAYMENT DUE DATE, THE SELLER MAY
PRESENT A PROVISIONAL INVOICE FOR PAYMENT.  THE PROVISIONAL INVOICE
SHALL BE CALCULATED IN ACCORDANCE WITH CLAUSE (9) USING ALL AVAILABLE QUOTATIONS
KNOWN AT THE TIME OF INVOICING.

     

    AS SOON
AS THE FINAL UNIT PRICE IS AVAILABLE, THE SELLER SHALL PRESENT A FINAL
INVOICE/CREDIT NOTE FOR SETTLEMENT WITHIN 3 NEW YORK BANKING DAYS OF
RECEIPT.  NO INTEREST SHALL BE DUE BY THE OWING PARTY ON ANY
DIFFERENCE BETWEEN THE PROVISIONAL AND FINAL INVOICE VALUE.

     

    IF
PAYMENT FALLS DUE ON A SATURDAY OR NEW YORK BANK HOLIDAY OTHER THAN A MONDAY,
PAYMENT SHALL BE MADE ON THE FIRST PRECEDING NEW YORK BANKING DAY.  IF
PAYMENT FALLS DUE ON A SUNDAY OR A MONDAY NEW YORK BANK HOLIDAY, THEN PAYMENT TO
BE MADE ON THE FIRST FOLLOWING NEW YORK BANKING DAY.

     

    
      
        
           

        

         

      

      
         

        
          

        

      

      
         

      

    

    

     

    PAYMENT
SHALL BE SECURED BY AN IRREVOCABLE DOCUMENTARY LETTER OF CREDIT OPENED BY A
FIRST CLASS BANK ACCEPTABLE TO SELLER AND IN A FORM ACCEPTABLE TO SELLER, TO
SELLER'S NOMINATED BANK, BY LATEST PRIOR VESSEL'S ARRIVAL AT
LOADPORT.

     

    AND IN
THIS RESPECT, BUYER'S BANK CHARGES FOR BUYER'S ACCOUNT.  SELLER'S BANK
CHARGES FOR SELLER'S ACCOUNT

     

    
      12.           DETERMINATION
OF QUANTITY AND QUALITY

    

     

    
      
        
          	
                  (A).

                	
                  THE
      QUALITY OF THE PRODUCT AT THE LOADPORT USING THE CUSTOMARY METHODS,
      PRACTICE AND PROCEDURE AT THE LOADPORT AND BASED UPON FULLY REPRESENTATIVE
      SAMPLES DRAWN FROM THE SHORE
TANKS.

                

        

      

    

     

    
      
        	
                
                  (B).

                

              	
                
                  THE
      QUANTITY OF THE PRODUCT AT THE LOADPORT USING THE CUSTOMARY METHODS,
      PRACTICE AND PROCEDURE AT THE LOADPORT AND BASED UPON SHORE
      MEASUREMENTS.

                

              

      

    

     

    
      13.           INSPECTION

    

     

    BUYER AND
SELLER WILL APPOINT A MUTUALLY AGREED FIRST CLASS SURVEYOR MESSRS ITS-CALEB BRET
OR MUTUALLY ACCEPTABLE INDEPENDENT SURVEYOR TO CARRY OUT THE WEIGHT AND ANALYSIS
AT PORT KUANTAN THE WEIGHT AND ANALYSIS OF THE REPRESENTATIVE SHORE TANK AT PORT
KUANTAN ARE FINAL AND BINDING ON BOTH PARTIES SAVE FOR FRAUD OR MANIFEST
ERROR.  COSTS OF SUCH INSPECTION TO BE SHARED EQUALLY BETWEEN SELLER
AND BUYER.

     

    
      14.           LAYTIME

    

     

    LAYTIME
OF 50% OF THE CHARTERPARTY ALLOWANCE SHINC, WEATHER PERMITTING BERTHING /
LOADING OR NOT, SHALL BE ALLOWED TO SELLER FOR EACH MONTHLY LIFTING, PRORATA FOR
PART CARGO, COMMENCING 6 HOURS AFTER NOR HAS BEEN TENDERED OR WHEN VESSEL IS ALL
FAST ALONGSIDE BERTH, WHICHEVER IS THE EARLIER AND TIME (FOR THE PURPOSES OF
COMPUTING LAYTIME AND DEMURRAGE) SHALL CEASE WHEN CARGO DOCUMENTS ARE ON
BOARD.

     

    IF
DELIVERY OF CARGO DOCUMENTS IS DELAYED IN EXCESS OF 2 HRS FROM HOSE
DISCONNECTION THEN LAYTIME WILL CONTINUE TO RUN UPON THE EXPIRATION OF SUCH
ALLOWANCE AND UNTIL CORRECT AND SIGNED DOCUMENTATION IS DELIVERED ON
BOARD.

     

    IN THE
EVENT OF STS OPERATION UNDERTAKEN AT THE REQUEST OF SELLER, ALL TIME USED IN
CONNECTION WITH STS OPERATIONS (SUCH TIME SHALL COMMENCE 6 HOURS AFTER NOR HAS
BEEN TENDERED OR WHEN VESSEL IS MOORED TO THE STS VESSEL, WHICHEVER IS EARLIER
AND SHALL END WHEN THE VESSEL IS UNMOORED FROM THE LAST CARGO RECEIVING VESSEL)
SHALL COUNT AS USED LAYTIME, OR, IF THE VESSEL IS ON DEMURRAGE, AS TIME ON
DEMURRAGE.  ALL TIME TO COUNT WEATHER PERMITTING OR NOT.

     

    
      15.           DEMURRAGE

    

     

    SELLER IS
RESPONSIBLE FOR PROCURING A SAFE BERTH(S) AT THE LOAD PORT/FACILITY REACHABLE ON
ARRIVAL AND ALWAYS ACCESSIBLE TO WHICH THE VESSEL CAN PROCEED, AT WHICH IT MAY
LIE AND FROM WHICH IT MAY DEPART (FULLY LADEN), ALWAYS SAFELY AFLOAT AND FREE OF
ALL WHARFAGE AND DOCKAGE DUES AND FEES.  SELLER SHALL ARRANGE FOR
BERTHING OF THE VESSEL

     

    
      
        
           

        

         

      

      
         

        
          

        

      

      
         

      

    

    IN
ACCORDANCE WITH THE CARGO DELIVERY WINDOW AND AS DETERMINED BY THE TIME THE
NOTICE OF READINESS HAS BEEN TENDERED.

     

    PUBLIC
TERMINAL/DOCK DELAYS WILL NOT BE FOR THE ACCOUNT OF THE BUYER AND LAYTIME SHALL
COUNT AS DESCRIBED UNDER LAYTIME CLAUSE.

     

    SELLER
SHALL PAY LOAD PORT DEMURRAGE TO BUYER IN ACCORDANCE WITH THE FOLLOWING
PROVISIONS:

     

    DEMURRAGE
SHALL BE PAYABLE AT THE VESSEL CHARTERPARTY RATE OF WHICH BUYER TO ADVISE SELLER
WHEN VESSEL IS NOMINATED).  NO OTHER TERMS OF THE CHARTER PARTY ARE
INCORPORATED INTO THIS CONTRACT UNLESS EXPRESSLY PROVIDED.  IF THE
VESSEL IS ON TIME CHARTER, THE APPLICABLE DAILY RATE WILL BE THE DAILY HIRE PLUS
BUNKER COSTS.

     

    DEMURRAGE
TO BE PAID BY SELLER WITHIN 30 DAYS FROM RECEIPT OF BUYER'S DOCUMENTED CLAIM,
WHICH SHALL INCLUDE:

     

    
      
        
          	
                  (A).

                	
                  NOR
      OF PERFORMING VESSEL.

                

        

      

    

    
      
        	
                
                  (B).

                

              	
                
                  SOF
      (SIGNED BY MASTER AND, IF POSSIBLE, BY SELLER AND BUYER OR THEIR AGENTS/
      REPRESENTATIVES).

                

              

      

    

    
      
        	
                
                  (C).

                

              	
                
                  EVIDENCE
      OF CHARTERPARTY RATE [OR TIME CHARTER DAILY HIRE PLUS BUNKER
      COSTS].

                

              

      

    

    
      
        	
                
                  (D).

                

              	
                
                  LAYTIME/DEMURRAGE
      CALCULATION.

                

              

      

    

    
      
        	
                
                  (E).

                

              	
                
                  ANY
      OTHER DOCUMENT BUYER CONSIDERS RELEVANT TO THE LAYTIME – DEMURRAGE
      CALCULATION.

                

              

      

    

     

    IN THE
EVENT THAT SELLER FAILS TO PAY WITHIN 30 DAYS, SELLER SHALL PAY INTEREST ON THE
OVERDUE PAYMENT AT THE THE ONE WEEK LIBOR RATE AS QUOTED BY THE ROYAL BANK OF
SCOTLAND ON THE DATE PAYMENT IS DUE PLUS 3 PERCENT UNTIL THE DATE PAYMENT IS
RECEIVED INTO SELLER'S NOMINATED BANK ACCOUNT.

     

    
      16.           PROPERTY/TITLE

    

     

    PROPERTY
IN / TITLE TO THE CARGO DELIVERED HEREUNDER SHALL PASS FROM SELLER TO BUYER WHEN
IT PASSES THE PERMANENT FLANGE CONNECTION OF THE VESSEL'S INTAKE HOSE AT THE
LOADPORT.

     

    
      17.           RISK

    

     

    RISK OF
LOSS, CONTAMINATION OR DAMAGE TO THE CARGO DELIVERED HEREUNDER SHALL PASS FROM
SELLER TO BUYER WHEN IT PASSES THE FLANGE CONNECTION OF THE VESSEL'S INTAKE HOSE
AT THE LOAD PORT.

     

    
      18.           LAW
AND ARBITRATION

    

     

    THIS
AGREEMENT SHALL BE GOVERNED AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF
ENGLAND, WITHOUT REGARD TO PRINCIPLES OF CHOICE OF LAW.

     

    ANY
DISPUTE WHICH ARISES BETWEEN THE PARTIES OUT OF OR IN CONNECTION WITH THIS
AGREEMENT, INCLUDING BUT NOT LIMITED TO ANY QUESTION REGARDING ITS EXISTENCE,
VALIDITY OR TERMINATION, SHALL BE REFERRED TO AND FINALLY RESOLVED BY
ARBITRATION UNDER THE RULES OF THE INTERNATIONAL CHAMBER OF COMMERCE, WHICH
RULES ARE DEEMED TO BE INCORPORATED.

     

    
      
        
           

        

         

      

      
         

        
          

        

      

      
         

      

    

    

     

    THE PLACE
OF THE ARBITRATION SHALL BE LONDON.  THE LANGUAGE OF THE ARBITRATION
SHALL BE ENGLISH.  THE TRIBUNAL SHALL CONSIST OF THREE ARBITRATORS,
ONE TO BE NOMINATED BY EACH PARTY AND THE THIRD BY THE TWO SO
NOMINATED.

     

    ANY AWARD
RENDERED IN SUCH ARBITRATION SHALL BE FINAL AND BINDING UPON THE PARTIES HERETO
AND JUDGMENT MAY BE ENTERED THEREON OF ANY ORDER OF ENFORCEMENT OBTAINED IN ANY
COURTS HAVING JURISDICTION.

     

    
      19.           CLAIMS

    

     

    IF ANY
CLAIMS ARISE UNDER OR IN CONNECTION WITH THIS CONTRACT, THE CLAIMING PARTY SHALL
NOTIFY THE OTHER PARTY OF ITS CLAIM IN WRITING WITHIN 6 MONTHS FROM THE DATE OF
THE COMPLETION OF LOADING OF EACH SHIPMENT, FAILING WHICH THE CLAIM SHALL BE
DEEMED WAIVED AND ABSOLUTELY BARRED.  THIS CLAUSE SHALL NOT APPLY TO
CLAIMS IN RESPECT OF DEMURRAGE, PORT COSTS, SHIFTING, DEVIATION, FREIGHT
DIFFERENTIAL, HEATING AND/OR AWRP.

     

    
      20.           FORCE
MAJEURE

    

     

    IF EITHER
PARTY IS RENDERED UNABLE TO PERFORM FULLY OR IN PART ANY OBLIGATION UNDER THIS
CONTRACT, EXCEPT IN RELATION TO OBLIGATIONS TO MAKE PAYMENTS DUE UNDER THIS
CONTRACT (INCLUDING DEMURRAGE), THEN TO THE EXTENT THAT SUCH INABILITY ARISES
FROM A CAUSE OR CAUSES BEYOND THAT PARTY'S CONTROL AND UPON SUCH PARTY PROMPTLY
GIVING WRITTEN NOTICE TO THE OTHER PARTY OF SUCH CAUSE(S), NEITHER PARTY SHALL
BE LIABLE TO THE OTHER IN DAMAGES OR OTHERWISE AND THE TIME FOR PERFORMANCE OF
THE AFFECTED OBLIGATION SHALL BE EXTENDED DURING AND FOR THE PERIOD OF INABILITY
SO CAUSED, UP TO A MAXIMUM OF THIRTY (30) CALENDAR DAYS.

     

    SHOULD
SUCH PERIOD OF INABILITY CONTINUE IN EXCESS OF THIRTY (30) CALENDAR DAYS, EITHER
PARTY SHALL HAVE THE RIGHT TO TERMINATE THIS CONTRACT BY WRITTEN NOTICE TO THE
OTHER PARTY, IN WHICH CASE NEITHER PARTY SHALL BE RESPONSIBLE FOR FURTHER
PERFORMANCE NOR LIABLE IN ANY WAY TO EACH OTHER.

     

    SHOULD A
PARTICULAR DELIVERY (OR DELIVERIES) BE CANCELLED DUE TO AN EVENT OF FORCE
MAJEURE, NEITHER SELLER NOR BUYER SHALL BE RELIEVED FROM THEIR OBLIGATIONS UNDER
THIS AGREEMENT IN RESPECT TO FURTHER DELIVERIES NOT AFFECTED BY THE FORCE
MAJEURE.

     

    THE TERM
CAUSE(S) BEYOND THAT PARTY'S CONTROL USED HEREIN SHALL INCLUDE (BUT WITHOUT
LIMITING THE GENERALITY OF SUCH TERM): ACT(S) OF GOD, PERILS OF THE SEA, FIRE,
DELAY OF THE PERFORMING VESSEL ARISING FROM BREAKDOWN OR ADVERSE WEATHER, WAR
(DECLARED OR UNDECLARED), MILITARY OPERATIONS, BLOCKADE, REVOLUTION,
DISTURBANCE, TRADE RESTRICTION, REQUESTS, ORDERS OR ACTIONS OF ANY GOVERNMENT,
OR BY ANY PERSON PURPORTING TO REPRESENT A GOVERNMENT, OR ANY OTHER CAUSE OF A
SIMILAR NATURE AS DESCRIBED HEREIN NOT REASONABLY WITHIN THE CONTROL OF THE
RESPECTIVE PARTIES.

     

    
      21.           LIMITATION
OF LIABILITY

    

     

    NEITHER
THE SELLER NOR THE BUYER SHALL BE LIABLE FOR CONSEQUENTIAL, INDIRECT OR SPECIAL
LOSSES OR SPECIAL DAMAGES OF ANY KIND ARISING OUT OF

     

    
      
        
           

        

         

      

      
         

        
          

        

      

      
         

      

    

    OR IN ANY
WAY CONNECTED WITH THE PERFORMANCE OF OR FAILURE TO PERFORM THIS
AGREEMENT.

     

    
      22.           OTHER
TERMS

    

     

    WHERE NOT
INCONSISTENT WITH THE ABOVE, INCOTERMS 2000 FOR FOB PURCHASES, WITH ALL LATER
AMENDMENTS, SHALL APPLY.

     

    THE
UNITED NATIONS CONVENTION ON CONTRACTS FOR THE INTERNATIONAL SALE OF GOODS SHALL
NOT APPLY TO THIS CONTRACT.

     

    
      23.           ASSIGNABILITY

    

     

    NEITHER
PARTY SHALL ASSIGN THE WHOLE OR ANY PART OF ITS RIGHTS AND OBLIGATIONS HEREUNDER
DIRECTLY OR INDIRECTLY WITHOUT THE PRIOR WRITTEN CONSENT OF THE OTHER
PARTY

     

    
      24.           THIRD
PARTY RIGHTS

    

     

    NOTHING
IN THIS AGREEMENT SHALL BE CONSIDERED OR CONSTRUED AS CONFERRING ANY RIGHT OR
BENEFIT ON A PERSON NOT A PARTY TO THIS AGREEMENT AND THE PARTIES DO NOT INTEND
THAT ANY TERM OF THIS AGREEMENT SHOULD BE ENFORCEABLE, BY VIRTUE OF THE
CONTRACTS (RIGHTS OF THIRD PARTIES) ACT 1999, BY ANY PERSON WHO IS NOT A PARTY
TO THIS AGREEMENT.

     

    
      25.           WARRANTIES

    

     

    SELLER
WARRANTS THAT IT HAS FULL LEGAL TITLE TO THE PRODUCT, FREE AND CLEAR OF ALL
LIENS, CLAIMS, ENCUMBRANCES AND THAT IT HAS FULL RIGHT AND POWER TO CONVEY SUCH
TITLE TO BUYER.

     

    
      26.           ISPS
COMPLIANCE

    

     

    
      
        
          	
                  1.

                	
                  BUYERS
      SHALL PROCURE THAT THE VESSEL SHALL COMPLY WITH THE REQUIREMENTS OF THE
      INTERNATIONAL CODE FOR THE SECURITY OF SHIPS AND OF PORT FACILITIES AND
      THE RELEVANT AMENDMENTS TO CHAPTER XI OF SOLAS (ISPS CODE) AND WHERE THE
      LOADING PORT IS WITHIN THE USA AND US TERRITORIES OR WATERS, WITH THE US
      MARITIME TRANSPORTATION SECURITY ACT 2002
  (MTSA),

                

        

      

    

     

    
      
        
          	
                  2.

                	
                  THE
      VESSEL SHALL WHEN REQUIRED SUBMIT A DECLARATION OF SECURITY (DOS) TO THE
      APPROPRIATE AUTHORITIES PRIOR TO ARRIVAL AT THE LOADING
    PORT.

                

        

      

    

     

    
      
        	
                
                  3.

                

              	
                
                  NOTWITHSTANDING
      ANY PRIOR ACCEPTANCE OF VESSEL BY SELLER, IF AT ANY TIME PRIOR TO THE
      PASSING OF RISK AND TITLE THE VESSEL CEASES TO COMPLY WITH THE
      REQUIREMENTS OF THE ISPS CODE OR
MTSA:

                

              

      

    

     

    
      
        
          	
                	
                  A)

                	
                  SELLER
      SHALL HAVE THE RIGHT NOT TO BERTH SUCH NOMINATED VESSEL AND ANY DEMURRAGE
      RESULTING SHALL NOT BE FOR THE ACCOUNT OF THE
  SELLER.

                

        

      

    

     

    
      
        	
              	
                
                  B)

                

              	
                
                  BUYER
      SHALL BE OBLIGED TO SUBSTITUTE SUCH NOMINATED VESSEL WITH A VESSEL
      COMPLYING WITH THE REQUIREMENTS OF THE ISPS CODE AND
      MTSA.

                

              

      

    

     

    
      
        
           

        

         

      

      
         

        
          

        

      

      
         

      

    

    

     

    
      
        
          
            	
                    4. 

                  	A)	
                    SELLERS
      SHALL PROCURE THAT THE LOADING PORT/TERMINAL/INSTALLATION SHALL COMPLY
      WITH THE REQUIREMENTS OF THE INTERNATIONAL CODE FOR THE SECURITY OF SHIPS
      AND OF PORT FACILITIES AND THE RELEVANT AMENDMENTS TO CHAPTER XI
      OF
      SOLAS (ISPS CODE) AND IF LOCATED WITHIN THE USA AND US TERRITORIES, WITH
      THE US MARITIME TRANSPORTATION SECURITY ACT 2002
  (MTSA)

                  

          

        

      

    

     

    
      
        
          	
                	
                  B)

                	
                  ANY
      COSTS OR EXPENSES IN RESPECT OF THE VESSEL INCLUDING DEMURRAGE OR ANY
      ADDITIONAL CHARGE, FEE OR DUTY LEVIED ON THE VESSEL AT THE LOADING PORT
      AND ACTUALLY INCURRED BY BUYER RESULTING DIRECTLY FROM THE FAILURE OF THE
      LOADING PORT/TERMINAL/INSTALLATION TO COMPLY WITH THE ISPS CODE AND IF
      LOCATED WITHIN THE USA AND US TERRITORIES, WITH THE MTSA, SHALL BE FOR THE
      ACCOUNT OF THE SELLER, INCLUDING BUT NOT LIMITED TO THE TIME REQUIRED OR
      COSTS INCURRED BY THE VESSEL IN TAKING ANY ACTION OR ANY SPECIAL OR
      ADDITIONAL SECURITY MEASURES REQUIRED BY THE ISPS CODE OR
    MTSA

                

        

      

    

     

    
      
        
          	
                  5. 

                	
                  SAVE
      WHERE THE VESSEL HAS FAILED TO COMPLY WITH THE REQUIREMENTS OF THE
      INTERNATIONAL CODE FOR THE SECURITY OF SHIPS AND OF PORT FACILITIES AND
      THE RELEVANT AMENDMENTS TO CHAPTER XI OF SOLAS (ISPS CODE) AND WITHIN THE
      USA AND US TERRITORIES OR WATERS, WITH THE US MARITIME TRANSPORTATION
      SECURITY ACT 2002 (MTSA), THE SELLER SHALL BE RESPONSIBLE FOR ANY
      DEMURRAGE ACTUALLY INCURRED BY THE BUYER ARISING FROM DELAY TO THE VESSEL
      AT THE LOADING PORT RESULTING DIRECTLY FROM THE VESSEL BEING REQUIRED BY
      THE PORT FACILITY OR ANY RELEVANT AUTHORITY TO TAKE ANY ACTION OR ANY
      SPECIAL OR ADDITIONAL SECURITY MEASURES OR UNDERGO ADDITIONAL INSPECTIONS
      BY VIRTUE OF THE VESSELS PREVIOUS PORTS OF
CALL.

                

        

      

    

     

    
      
        	
                
                  6. 

                

              	
                
                  THE
      SELLER'S LIABILITY TO THE BUYER UNDER THIS AGREEMENT FOR ANY COSTS, LOSSES
      OR EXPENSES INCURRED BY THE VESSEL, THE CHARTERERS OR THE VESSEL OWNERS
      RESULTING FROM THE FAILURE OF THE LOADING PORT/TERMINAL/INSTALLATION TO
      COMPLY WITH THE ISPS CODE OR MTSA SHALL BE LIMITED TO THE PAYMENT OF
      DEMURRAGE AND COSTS ACTUALLY INCURRED BY THE BUYER IN ACCORDANCE WITH THE
      PROVISIONS OF THIS
CLAUSE.

                

              

      

    

     

    
      27.           NOTIFICATIONS

    

     

    ANY
CONTRACTUAL, OPERATIONAL FINANCIAL, OR PRICING NOTIFICATIONS FROM SELLER TO
BUYER TO BE MADE TO THE FOLLOWING CONTACTS:-

     

    BUYER

     

    CONTRACTS:

     

    
      	
              LUCY
      CLARK-WARD

              ALANA
      THOMPSON

            	
              TEL:            +44-207-170-7968

              TEL:            +44-207
      173 2287

              FAX:           +44-207
      170 7818

              TLX:            921187

              EMAIL:       CONTRACTADMINISTRATIONS@TRAFIGURA.COM

            

    

    

     

    
      
        
           

        

         

      

      
         

        
          

        

      

      
         

      

    

    OPERATIONAL
CONTACTS:

     

    
      	
              ANNE
      DUBOIL

            	
              TEL:            +41-22-594
      6926

              FAX:           +41-22-598-6901

              EMAIL:       BIODESELOPERATIONS@TRAFIGURA.COM

            

    

    FINANCIAL
CONTACT:

     

    
      	
              AMANDA
      YOUNG

            	
              TEL:            +44-207-009-1698

              FAX:           +44-207-170-7816

            

    

    PRICING
NOTIFICATIONS:

     

    
      	
              E-MAIL:

            	
              PRICINGDECLARATIONSDISTILLATES@TRAFIGURA.COM

            

    

    

     

    SELLER

     

    SALES, TRADING & OVERALL
SERVICE RESPONSIBILITY

     

    
      
        	
                R
      VASUTHEWAN

              	
                TEL:            +49-170-221
      7676

                EMAIL:      VASU@MISSIONNEWENERGY.COM

              
	 	 

      

    

    FINANCIAL
& CONTRACT ADMINISTRATION

    
      	
              NATHAN
      MAHALINGAM

            	
              (FINANCIAL)
      TEL: +6-03-7960 8770

              FAX:            +6-03-7960
      8771

              EMAIL:        NATHAN@MISSIONNEWENERGY.COM

            

    

    

     

    OPERATIONS
AND LOGISTICS

     

    
      	
              T
      VENTHAN

            	
              TEL:            +6-03-7960
      8770

              FAX:           +6-03-7960
      8771

              EMAIL:       VENTHAN@MISSIONNEWENERGY.COM

            

    

    

     

    ALL
NOTICES AND COMMUNICATIONS FROM EITHER PARTY ARISING OUT OF OR IN CONNECTION
WITH THIS CONTRACT MUST BE RECEIVED BY THE OTHER PARTY WITHIN OFFICE HOURS (0830
TO 1730) IN THE RELEVANT TIME ZONE AND SENT IN ACCORDANCE WITH THE NOTIFICATIONS
PROVISIONS HEREIN.  ANY NOTICE OR COMMUNICATION ADDRESSED TO SOMEONE
OTHER THAN THE REPRESENTATIVE(S) NAMED HEREIN SHALL BE DEEMED TO HAVE NOT BEEN
RECEIVED AND SHALL HAVE NO LEGAL OR CONTRACTUAL FORCE OR EFFECT.  ANY
NOTICE OR COMMUNICATIONS RECEIVED OUTSIDE OF OFFICE HOURS (AS DESCRIBED ABOVE)
SHALL BE DEEMED TO HAVE BEEN RECEIVED ON THE NEXT WORKING DAY.

     

    
      28.           ENTIRE
AGREEMENT

    

     

    THIS
CONTRACT CONTAINS THE ENTIRE AGREEMENT OF BOTH PARTIES AND IT CANNOT BE MODIFIED
UNLESS IN WRITING.

     

    
      29.           CONFIRMATION

    

     

    TRAFIGURA
BEHEER B.V. AMSTERDAM, BRANCH OFFICE LUCERNE, IS THE PURCHASING PARTY IN THIS
TRANSACTION, AND TRAFIGURA'S CONTRACT WILL GOVERN THE TERMS OF THIS
TRANSACTION.  IF ANY OF THE ABOVE IS CONTRARY TO YOUR UNDERSTANDING OF
THE AGREEMENT, PLEASE RESPOND IMMEDIATELY VIA

     

    
      
        
           

        

         

      

      
         

        
          

        

      

      
         

      

    

    TELEX/FAX
WITH YOUR SPECIFIC POINTS OF DISAGREEMENT (NOT A FULL CONTRACT).  IN
THE EVENT THAT NO SUCH NOTIFICATION IS RECEIVED BY US IN THE NEXT 72 HOURS,
FOLLOWING THE DATE / TIME OF THIS CONTRACT, THE PROVISIONS SET FORTH IN THIS
CONTRACT SHALL BE BINDING UPON BOTH PARTIES WITHOUT MODIFICATION OR
SUBSTITUTION.

     

    IN
WITNESS WHEREOF, THE PARTIES HERETO HAVE CAUSED THEIR DULY AUTHORISED
REPRESENTATIVES TO EXECUTE THIS AGREEMENT AS OF 1ST  DECEMBER 2008.

     

    

     

    MISSION
BIOTECHNOLOGIES SDN BHD

     

    BY:                      /s/
Nathan Mahalingam

     

    NAME:               Nathan
Mahalingam, Group Managing Director

     

    DATE:                 January
30, 2009

     

    

     

    TRAFIGURA
BEHEER B.V. AMSTERDAM, BRANCH OFFICE LUCERNE

     

    BY:                      
/s/ S.
Luedin                                                                /s/
Marco Schumacher

     

    NAME:                S.
Luedin, Finance
Manager                                     Marco
Schumacher

     

    
      
        
           

        

         

      

      
         

        
          

        

      

      
         

      

    

    

     

    ATTACHMENT
A

     

    TO:

    ATTN: L/C
DEPARTMENT.

     

    FROM:

     

    DATE:

     

    PLEASE
ISSUE, THE FOLLOWING IRREVOCABLE STAND-BY LETTER OF CREDIT TO:

     

    TO:

     

    

     

    QUOTE

    

    WE
xxxxxxxxxxx BRANCH HEREBY OPENS OUR IRREVOCABLE STANDBY LETTER OF CREDIT
NO.

     

    IN FAVOUR
OF:

     

    

     

    

     

    

     

    BY THE
ORDER OF:

     

    

     

    THIS
LETTER OF CREDIT IS AVAILABLE FOR PAYMENT AT SIGHT AT OUR COUNTERS IN xxxxxxx
FOR AN AMOUNT OF UP TO AN AGGREGATE OF
US$                  
(UNITED STATES DOLLARS in words) AGAINST PRESENTATION OF THE FOLLOWING
DOCUMENTS:

     

    A) STATEMENT
SIGNED BY AN AUTHORISED OFFICER OF xxxxxxxxx CERTIFYING THAT THE AMOUNT BEING
DRAWN UNDER THE PRESENT STANDBY L/C IS OVERDUE AND REPRESENTING THE NET AMOUNT
DUE BY xxxxxxxxxxxx TO xxxxxxxxxxxxxxxxxx

     

    B) COPY OF
TELEX INVOICE(S) SHOWING ACTUAL SETTLEMENT AMOUNT OR MARKED TO MARKET EXPOSURE
CALCULATION STATEMENT.

     

    COVERING:   TERM
CONTRACT xxxxxxxxxxx BETWEEN xxxxxxxxxxxxxxxx AND xxxxxxxxxxxxxxxx

     

    EXPIRY
DATE:

    SPECIAL
CONDITIONS:

     

    
      	
              1)  

            	
              PARTIAL
      AND MULTIPLE DRAWINGS ARE
PERMITTED.

            

    

     

    
      	
              2)  

            	
              ALL
      COMMISSIONS, EXPENSES AND CHARGES OF THE ISSUING BANK ARE FOR APPLICANT'S
      ACCOUNT.  ALL ADVISING BANK CHARGES, IF ANY, ARE FOR
      BENEFICIARY'S ACCOUNT.

            

    

     

    
      	
              3)  

            	
              PRESENTATION
      OF COPY OR FAX COPY DOCUMENTS
ACCEPTABLE.

            

    

     

    
      
        
           

        

         

      

      
         

        
          

        

      

      
         

      

    

    

     

    
      	
              4)  

            	
              DOCUMENT
      BEARING TYPOGRAPHICAL OR SPELLING ERRORS ARE NOT TO BE CONSIDERED AS
      DISCREPANT EXCEPT FOR AMOUNTS, QUANTITIES AND
  DATES

            

    

     

    THIS
LETTER OF CREDIT WILL BE REDUCED BY ANY PAYMENTS EFFECTED BY xxxxxxxxxx IN
FAVOUR OF xxxxxxxxxxxxxx BEARING REFERENCE TO THIS LETTER OF CREDIT
NUMBER.

     

    PAYMENT
CLAUSE:

    WE HEREBY
ENGAGE WITH THE BENEFICIARY THAT DOCUMENTS DRAWN UNDER AND IN COMPLIANCE WITH
THE TERMS OF THIS LETTER OF CREDIT WILL BE HONOURED UPON PRESENTATION AS
SPECIFIED.

     

    UNLESS
OTHER WISE SPECIFIED, THIS STANDBY LETTER OF CREDIT IS SUBJECT TO THE UNIFORM
CUSTOMS AND PRACTICE FOR DOCUMENTARY CREDITS.  REVISION 2007,
PUBLICATION NO. 600 OF THE ICC.  THIS TELEX IS THE OPERATIVE
INSTRUMENT AND NO WRITTEN CONFIRMATION WILL FOLLOW.

     

    UNQUOTE

     

      -----

     

    AUTHORISED
SIGNATORIES

    FOR AND
ON BEHALF OF

     

    

     

    TRAFIGURA BEHEER B.V. AMSTERDAM, BRANCH
OFFICE LUCERNE

     

    /s/ S.
Luedin                                                                /s/
Marco Schumacher

     

    S. Luedin, Finance
Manager                                     Marco
SchumacherExhibit 10.2

 

Selective Insurance Company of America

 

Deferred Compensation Plan (2005)

 

As Amended and Restated Effective as of January 1, 2010

 

  

  

  

 

	
1.

	
Establishment and Restatement

	
1

	
2.

	
Old Plan

	
1

	
3.

	
Purpose and Intent

	
1

	
4.

	
Definitions

	
1

	
5.

	
Enrollment; Deferral Elections

	
6

	
6.

	
Matching, Discretionary and Nonelective Contributions

	
8

	
7.

	
Election of Time and Form of Payment

	
10

	
8.

	
Election Changes

	
11

	
9.

	
Vesting

	
11

	
10.

	
Accounts

	
12

	
11.

	
Notional Investment of Accounts

	
12

	
12.

	
Payment of Benefits

	
13

	
13.

	
Timing of Payments

	
14

	
14.

	
Unforeseeable Emergency Distributions

	
15

	
15.

	
Acceleration of Payments Upon Certain Events

	
15

	
16.

	
Compliance with Code Section 162(m)

	
17

	
17.

	
Administration

	
17

	
18.

	
Claim and Appeal Procedure

	
19

	
19.

	
Establishment of Trusts

	
20

	
20.

	
Amendment and Termination of the Plan

	
21

	
21.

	
Participating Employers

	
22

	
22.

	
General Provisions

	
22

	
APPENDIX A

	
26

  

i

  

Selective Insurance Company of America

Deferred Compensation Plan (2005)

As Amended and Restated Effective as of January 1, 2010

 

1.           Establishment and Restatement

 

Selective Insurance Company of America (the “Company”) established this Selective Insurance Company of America Deferred Compensation Plan (2005) (the “Plan”), effective as of January 1, 2005, and has amended the Plan from time to time thereafter.  The Company hereby further amends and restates the Plan as set forth below, generally effective as of January 1, 2010.

 

2.           Old Plan

 

Effective as of July 1, 2002, the Company established the Selective Insurance Company of America Deferred Compensation Plan (the “Old Plan”) in order to provide a select group of management or highly compensated employees of the Company and certain of its affiliates with the opportunity to elect to defer receipt of specified portions of compensation.  Effective on and after January 1, 2005, the terms of the Old Plan have continued to apply to all amounts accrued under the Old Plan that were earned and vested, within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), as of December 31, 2004, including earnings on such amounts after December 31,
2004, and no further amounts shall be deferred under the Old Plan after December 31, 2004.  All amounts accrued pursuant to the Old Plan as of December 31, 2004 which were not deferred and vested, within the meaning of Section 409A, on or before December 31, 2004, and all amounts accrued pursuant to the Old Plan on or after January 1, 2005, and all earnings on such amounts, are deemed to have been deferred pursuant to this Plan, and shall be governed by the terms hereof.

 

3.           Purpose and Intent

 

The purpose of the Plan is to provide a select group of management or highly compensated employees (within the meaning of Sections 201(2), 301(a)(3) and 401(a)(1) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”)), of the Company and those of its Affiliates which adopt the Plan with supplemental retirement income benefits through deferral of base salary and other compensation and through additional discretionary employer contributions.  The Plan is intended to be unfunded for the purposes of ERISA and the Code, and to comply with the requirements of Section 409A of the Code and the regulations and other applicable guidance thereunder.

 

4.           Definitions

 

The following terms used in the Plan shall have the meanings set forth below:

 

(a)           “Account” shall mean the bookkeeping Account established in the name of each Participant to reflect the interest of the Participant under the Plan, and which is composed of the following:

 

  

  

  

(i)           “Savings Contribution Account” shall mean an account attributable to a Participant’s Savings Contributions, as adjusted for earnings and losses thereon;

 

(ii)          “Matching Contribution Account” shall mean an account attributable to Matching Contributions made by a Participating Employer on behalf of a Participant, as adjusted for earnings and losses thereon; and

 

(iii)         “Discretionary Contribution Account” shall mean an account attributable to Discretionary Contributions made by a Participating Employer on behalf of a Participant, as adjusted for earnings and losses thereon.

 

A Participant’s Account under the Plan consists only of Contributions (as adjusted for earnings and losses thereon) made to the Plan by or on behalf of the Participant: (1) on or after January 1, 2005; and (2) under the Old Plan prior to January 1, 2005, to the extent that the Participant was not vested in such amounts as of December 31, 2004.  Accounts shall be maintained solely as bookkeeping entries by the Company to evidence unfunded obligations of the Participating Employers.

 

(b)           “Administrator” shall mean the Company or the organization, committee or individual to whom it has delegated the authority to administer the Plan, as described in Section 17.

 

(c)           “Affiliate” shall mean the Company and any corporation, trade, or business which is treated as a single employer with the Company under Code Sections 414(b) or 414(c), and any other entity designated as an “Affiliate” for purposes of the Plan by the Administrator.

 

(d)           “Annual Bonus” shall mean a Participant’s annual cash incentive payment from a Participating Employer.

 

(e)           “Beneficiary” shall mean the person or persons last designated in writing in accordance with procedures established by the Administrator to receive the Participant’s benefits under the Plan in the event of the Participant’s death.  If there is no such designation, the Participant’s Beneficiary shall be his surviving spouse or, if none, the Participant’s surviving children or, if none, the Participant’s estate.

 

(f)            “Board” shall mean the Board of Directors of the Company.

 

(g)           “Change of Control” shall mean the occurrence of an event with respect to either the Company or Selective Insurance Group, Inc. (“SIGI”) of a nature that would be required to be reported in response to Item 5.01 of a Current Report on Form 8-K, as in effect on the date hereof, pursuant to Sections 13 or 15(d) of the Exchange Act; provided, however, that a Change of Control shall, in any event, conclusively be deemed to have occurred upon the first to occur of any one of the following events:

 

  

2

  

(i)           The acquisition by any person or group, including, without limitation, any current stockholder or stockholders of the Company or SIGI, of securities of the Company or SIGI resulting in such person’s or group’s owning, of record or beneficially, twenty-five percent (25%) or more of any class of voting securities of the Company or SIGI;

 

(ii)          The acquisition by any person or group, including, without limitation, any current stockholder or stockholders of the Company or SIGI, of securities of the Company or SIGI resulting in such person’s or group’s owning, of record or beneficially, twenty percent (20%) or more, but less than twenty-five percent (25%), of any class of voting securities of the Company or SIGI, if the Board adopts a resolution that such acquisition constitutes a Change of Control;

 

(iii)         The sale or disposition of all or substantially all of the assets of the Company or SIGI;

 

(iv)        A reorganization, recapitalization, merger, consolidation or other business combination involving the Company or SIGI, the result of which is the ownership by the stockholders of the Company or SIGI of less than eighty percent (80%) of the voting securities of the resulting or acquired entity having the power to elect a majority of the board of directors of such entity; or

 

(v)         A change in the membership of the Board of Directors of SIGI which, taken in conjunction with any other prior or concurrent changes, results in twenty percent (20%) or more of the membership of such Board of Directors being persons not nominated by the Board of Directors as set forth in SIGI’s then most recent proxy statement, excluding changes resulting from substitutions by the Board of Directors because of retirement or death of a director or directors, removal of a director or directors by the Board of Directors or resignation of a director or directors due to demonstrated disability or incapacity.

 

Notwithstanding anything in this definition to the contrary, no Change of Control shall be deemed to have occurred under the Plan with respect to a particular Participant and his Account by virtue of any transaction which results in the Participant, or a group of persons which includes the Participant, acquiring, directly or indirectly, voting securities of the Company or SIGI.

 

For the purpose of this paragraph (g), the following definitions shall apply:

 

The term “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.

 

The terms “person” and “beneficial owner” shall have the meanings set forth in Regulation 13D under the Exchange Act.

 

The term “voting security” shall include any security that has, or may have upon an event of default or in respect to any transaction, a right to vote on any matter on which the holder of any class of common stock of the Company or SIGI, as applicable, would have a right to vote.

 

The term “group” shall have the meaning set forth in Section 13(d) of the Exchange Act.

 

  

3

  

 

The term “substantially all of the assets of the Company or SIGI” shall mean more than fifty percent (50%) of the assets of the Company or SIGI on a consolidated basis, as shown in the Company’s or SIGI’s most recent audited balance sheet.

 

(h)          “Contribution” shall mean the amount a Participant or a Participating Employer contributes to the Plan, as follows:

 

(i)           “Savings Contribution” shall mean an amount contributed to the Plan on behalf of a Participant through salary reduction pursuant to Section 5(b) and credited to a Participant’s Savings Contribution Account;

 

(ii)          “Matching Contribution” shall mean an amount contributed to the Plan by a Participating Employer pursuant to Section 6(a) and credited to a Participant’s Matching Contribution Account; and

 

(iii)         “Discretionary Contribution” shall mean an amount contributed to the Plan by a Participating Employer pursuant to Section 6(b) and credited to a Participant’s Discretionary Contribution Account.

 

(i)           “Disability” shall mean a Participant’s inability to perform the duties of his position or any substantially similar position due to any medically determinable physical or mental impairment, where such impairment can be expected to result in death or can be expected to last for a continuous period of not less than six months, as set forth in Treasury Regulation Section 1.409A-3(j)(4)(xii).

 

(j)           “Election Period” shall mean the period established by the Administrator during which Participant deferral elections must be made in accordance with the requirements of Code Section 409A, as follows:

 

(i)           General Rule.  Except as provided in paragraphs (ii) and (iii) of this Section 4(j), the Election Period shall end no later than the last day of the Plan Year immediately preceding the Plan Year in which the compensation to which the deferral election relates is earned.

 

(ii)           Performance-Based Compensation.  If an Annual Bonus or other compensation which may be deferred under the Plan constitutes “performance-based compensation” (as defined in Treasury Regulations Section 1.409A-1(e)) (“Performance-Based Compensation”), then the Election Period with respect to such Performance-Based Compensation shall end no later than six months before the end of the Plan Year or other period during which the Performance-Based Compensation is earned; provided, however, that the Eligible Employee is employed continuously from the later
of the beginning of the performance period or the date the relevant performance criteria are established through to the date an election is made to defer such Performance-Based Compensation, and the amount of such Performance-Based Compensation has not become readily ascertainable as of the date the election is made.

 

  

4

  

(iii)           Newly Eligible Employees.  The Election Period with respect to the first Plan Year in which an Eligible Employee is eligible to participate in the Plan may, to the extent permitted under Code Section 409A, end no later than thirty (30) days after the Eligible Employee first becomes eligible to participate in the Plan, and shall apply only to compensation earned after the election is made.  A former Eligible Employee who again becomes an Eligible Employee shall be treated as newly eligible to make deferrals under the Plan within thirty (30) days upon return to
eligible status if: (A) the former Eligible Employee has received distribution of the full amount of his Savings Contribution Account balance and on or before the last such distribution was not eligible to make Savings Contributions for periods after the last distribution payment; or (B) the former Eligible Employee has not been eligible to make Savings Contributions under the Plan at any time during the twenty-four (24)-month period ending on the date he again becomes an Eligible Employee.  In addition, if an Eligible Employee is or was eligible to participate in another plan that is aggregated with the elective deferral portion of the Plan under Code Section 409A, participation in such plan shall be treated as participation in the Plan for purposes of determining whether the Eligible Employee is treated as newly eligible under the Plan.

 

(k)           “Eligible Employee” shall mean, with respect to a Plan Year, any employee of a Participating Employer who: (i) is paid on a United States payroll and is subject to taxation in the United States; (ii) is part of a select group of management or highly compensated employees of the Selective Group, within the meaning of Sections 201(2), 301(a)(3) and 401(a)(1) of ERISA; and (iii) is designated by the Administrator as eligible to participate in the Plan with respect to the Plan Year.

 

(l)            “In-Service Distribution” shall mean a distribution from a Participant’s Savings Contribution Account on a fixed date selected by the Participant which is prior to the Participant’s Separation from Service.

 

(m)          “Investment Fund” shall mean an investment fund, index or vehicle designated by the Administrator from time to time for the notional investment of Participant Accounts under the Plan.

 

(n)          “Participant” shall mean an Eligible Employee who elects to defer his compensation to the Plan, and any Eligible Employee or former Eligible Employee on whose behalf an Account balance is maintained under the Plan.

 

(o)          “Participating Employer” shall mean the Company and any of its Affiliates which adopts the Plan pursuant to Section 21 hereof, subject to any conditions imposed by the Company.

 

(p)          “Plan Year” shall mean the calendar year.

 

(q)          “Recordkeeper” shall mean Merrill Lynch, Pierce, Fenner & Smith Incorporated, or such other entity selected by the Administrator from time to time to provide day-to-day recordkeeping and administrative services to the Plan.

 

  

5

  

(r)           “RSP” shall mean the Selective Insurance Retirement Savings Plan, as amended from time to time, or any successor plan of the Company intended to qualify under Code Section 401(a) and containing a cash or deferred arrangement qualified under Code Section 401(k).

 

(s)           “Selective Group” shall mean the Company and all of its Affiliates.

 

(t)           “Separation from Service” shall mean a Participant’s Separation from Service, as defined in Code Section 409A(a)(2)(A)(i) and Treasury Regulations Section 1.409A-1(h), from his Participating Employer.

 

(u)          “Separation Distribution” shall mean a distribution from a Participant’s Account upon or following the Participant’s Separation from Service.

 

(v)           “Specified Employee” shall have the meaning set forth in Code Section 409A(a)(2)(B)(i) and Treasury Regulations Section 1.409A-1(i).  The determination of whether a Participant is a Specified Employee shall be made by the Administrator from time to time.

 

(w)          “Trust” shall mean any grantor trust or trusts established by the Company in connection with the Plan; provided, however, that the assets of the Trust contributed by each Participating Employer shall remain subject to the claims of the general creditors of such Participating Employer.

 

(x)           “Unforeseeable Emergency” shall have the meaning set forth in Code Section 409A(a)(2)(B)(ii) and Treasury Regulations Section 1.409A-3(i)(3).

 

(y)          “Valuation Date” shall mean each regular business day.

 

5.           Enrollment; Deferral Elections

 

(a)           Enrollment.  An Eligible Employee may become a Participant with respect to a Plan Year by filing an enrollment package with the Administrator for such Plan Year.  An enrollment package shall include a compensation deferral election, a Beneficiary designation, an election as to the commencement date and form of distribution for Contributions made under the Plan, and such other forms as may be required by the Administrator.

 

(b)           Deferral Elections.  Subject to the limitations of paragraphs (d) and (e) of this Section 5, a Participant may elect to defer the receipt of his base salary, Annual Bonus, and/or all such other compensation as the Administrator shall determine, and to have such amounts contributed to the Plan as a Savings Contribution.  For each Plan Year, a Participant shall make separate deferral elections with respect to his base salary and with respect to his Annual Bonus.  Each deferral election shall be made during the applicable Election Period, and subject to
paragraph (c) of this Section 5, shall become irrevocable as of the last day of the applicable Election Period.  If the Administrator so determines, a Participant’s deferral elections shall remain in effect for subsequent Plan Years unless a new deferral election is timely filed with the Administrator on or before the last day of a subsequent applicable Election Period.

 

  

6

  

(c)          Changing Elections.  A Participant may not revoke or change a deferral election during a Plan Year to which it applies.  However, an election with respect to a Plan Year shall automatically be terminated in the event that a Participant receives a distribution from the Plan during such Plan Year on account of an Unforeseeable Emergency.  In addition, the Administrator may in its sole discretion cancel a Participant’s deferral election for a Plan Year, to the extent permitted under Code Section 409A, in connection with a hardship distribution to the
Participant under the RSP or upon the Participant’s Disability.

 

(d)          Limits on Amounts Deferred.  An Eligible Employee may authorize the Company to reduce his compensation from his Participating Employer for any Plan Year and to have such amount(s) contributed to the Plan as a Savings Contribution as follows:

 

(i)           up to fifty percent (50%) of his base salary for the Plan Year;

 

(ii)          up to one hundred percent (100%) of his Annual Bonus, if any, earned in that Plan Year; and/or

 

(iii)         all or a portion of such other compensation as may be designated by the Administrator.

 

(e)           Additional Conditions and Limitations.  An Eligible Employee’s right to make a deferral election pursuant to this Section 5 shall be subject to the following additional limitations:

 

(i)           The aggregate minimum deferral amount for any Plan Year in which an Eligible Employee elects to participate in the Plan shall be $2,500, or such other amount as may be determined by the Administrator.  If the total amount deferred is in fact less than the applicable minimum amount for the Plan Year, then no portion of the Eligible Employee’s compensation shall be deferred for that Plan Year.

 

(ii)          Unless otherwise determined by the Administrator, an Eligible Employee may defer receipt of only that portion of his compensation that exceeds the amount necessary to satisfy Medicare and all other applicable payroll taxes imposed on the wages of the Eligible Employee, any deductions authorized by the Eligible Employee, including deductions made to the RSP and pursuant to Code Section 125, and any garnishment of wages or other deductions required by law.

 

(iii)         Subject to Section 409A of the Code and the regulations thereunder, the Administrator may impose the following additional limitations: (A) limitations on the amounts permitted to be deferred; (B) limitations on the sources, timing and form of deferrals; (C) limitations on amounts and sources of deferrals for particular Participants; and (D) terms and conditions regarding all deferrals under the Plan.  Any such limitations, and other terms and conditions of deferral, shall be set forth in the rules relating to the Plan or election forms, other forms, or instructions of the Administrator, which may be, but need not be, set forth in
writing.

 

  

7

  

(f)           Withholding of Deferred Amounts.  The amounts that an Eligible Employee elects to contribute to the Plan as Savings Contributions for any Plan Year shall be withheld from the Eligible Employee’s compensation as follows:

 

(i)           Base salary deferrals shall be withheld proportionately each payroll period during the Plan Year or in such other manner as may be administratively feasible.

 

(ii)          Withholdings with respect to a Participant’s Annual Bonus or other compensation shall be made as soon as practicable after the compensation would have been payable to the Participant if he did not elect to make a deferral with respect to such compensation.

 

6.           Matching, Discretionary and Nonelective Contributions

 

(a)           Matching Contributions.  For any Plan Year, a Participating Employer may, in its discretion, make a Matching Contribution to the Account of any Participant.  The amount of any such Matching Contribution shall be equal to the sum of (A) and (B), reduced
by (C), where:

 

	
  

	
A

	
is the sum of the Participant’s total Savings Contributions to the Plan during the Plan Year and the Participant’s total elective deferrals, including Roth elective deferrals, to the RSP for the Plan Year, such total not to exceed three percent (3%) of the Participant’s Compensation for the Plan Year;

 

	
  

	
B

	
is fifty percent (50%) of the sum of (i) the Participant’s total Savings Contributions to the Plan, plus (ii) the Participant’s total elective deferrals, including Roth elective deferrals, to the RSP for the Plan Year, but only to the extent that such total amount exceeds three percent (3%) of the Participant’s Compensation for the Plan Year but does not exceed six percent (6%) of the Participant’s Compensation for the Plan Year; and

 

	
  

	
C

	
is any matching contribution made on behalf of the Participant to the RSP for the Plan Year.

 

For purposes of this Section 6(a), “Compensation” shall mean the Participant’s base salary that is actually paid to the Participant during the Plan Year, or that would have been paid to the Participant during the Plan Year had the Participant not made any Savings Contributions to the Plan or any elective contributions, after-tax contributions or Roth contributions to the RSP in such Plan Year.

 

(b)           Discretionary Contributions.  A Participating Employer may, in its discretion, make a Discretionary Contribution to the Account of any Participant(s) at any time.  Any such Discretionary Contribution need not be uniform among Participants and may be made irrespective of any contributions made by the Participating Employer or the Participant under the Plan or under the RSP.

 

  

8

  

(c)           Nonelective Contributions for Certain Participants.  For each Plan Year beginning on or after January 1, 2010, a Participating Employer shall make a nonelective contribution to the Accounts of certain Participants as follows:

 

(i)           A Participant shall be eligible to receive a nonelective contribution pursuant to this Section 6(c) if: (A) he is not eligible to participate in the Retirement Income Plan for Selective Insurance Company of America; and (B) he has completed one year of service for eligibility purposes, as determined under the RSP.

 

(ii)          A nonelective contribution shall be in an amount equal to four percent (4%) of the Participant’s Compensation for the Plan Year, reduced by any nonelective contribution that is made on behalf of the Participant to the RSP with respect to such Plan Year due to the Participant’s ineligibility to participate in the Retirement Income Plan for Selective Insurance Company of America.  For purposes of this Section 6(c), “Compensation” shall mean the amount of the Participant’s base salary that is actually paid to the Participant during the Plan Year on or after the later of: (A) the date on which the Participant becomes
a Participant in the Plan; and (B) the first day of the payroll period coincident with or next following the date on which the Participant completes one year of eligibility service, as described in clause (i)(B) above.  Compensation shall include amounts that would have been paid to the Participant during the Plan Year during the period described in the foregoing sentence had the Participant not made, with respect to such period, any: (1) Savings Contributions to the Plan; (2) elective contributions, after-tax contributions or Roth contributions to the RSP; (3) salary reduction contributions under a cafeteria plan maintained by the Company or an Affiliate pursuant to Code Section 125 (including any amounts not available to the Participant in cash in lieu of group health coverage because the Participant is unable to certify that he has other health coverage); and (4) amounts
that are not includible in the gross income of the Participant by reason of Code Section 132(f)(4).

 

(iii)         A Participant shall be fully vested in any nonelective contributions made pursuant to this Section 6(c) at all times.

 

(iv)         A nonelective contribution shall be credited to a Participant’s Discretionary Contribution Account on such date as the Administrator shall determine, but no later than April 30 of the year following the Plan Year to which such nonelective contribution relates.

 

(v)          Except as expressly set forth in this Section 6(c), a nonelective contribution shall be treated for all purposes of the Plan as a Discretionary Contribution.

 

(vi)        A Participant who receives a nonelective contribution pursuant to this Section 6(c) with respect to the 2010 Plan Year shall not be entitled to make any initial election under Section 7 as to the time or form of payment of his Discretionary Contribution Account balance attributable thereto, and such portion of his Discretionary Contribution Account balance shall, subject to any election change made pursuant to Section 8, be distributed to the Participant as a Separation Distribution in one lump sum.

 

  

9

  

7.           Election of Time and Form of Payment

 

Each Participant shall elect during the applicable Election Period to have his vested Account balance with respect to such Plan Year distributed as either: (i) an In-Service Distribution; or (ii) a Separation Distribution, subject to the following limitations:

 

(a)           Separation Distributions.  A Participant may elect to receive his Account with respect to a Plan Year as a Separation Distribution, either in a lump sum or in annual installments over a period of five (5), ten (10) or fifteen (15) years.  A Participant may elect a different time and form of payment for distribution of his Account upon a Separation of Service resulting from death.  If the Participant does not make a separate election designating the time and form of payment of his Account upon a Separation of Service resulting from death, then, upon the
Participant’s Separation from Service resulting from death, his Account shall be distributed to his Beneficiary in a single lump sum.

 

(b)           In-Service Distributions.  A Participant may elect to receive his Savings Contribution Account for a Plan Year as an In-Service Distribution, either: (i) in a lump sum in a Plan Year selected by the Participant; or (ii) in annual installments over a period of two (2) to five (5) years, commencing in a Plan Year selected by the Participant.  Notwithstanding the foregoing sentence, the Plan Year selected by the Participant for an In-Service Distribution, or for the commencement of an In-Service Distribution payable in annual installments, shall not be earlier than
the third year following the Plan Year to which such deferral election relates.

 

(c)           Matching and Discretionary Contributions.  A Participant’s Matching Contributions and Discretionary Contributions, if any, shall not be distributed as In-Service Distributions and shall be distributed pursuant to the Participant’s Separation Distribution election for the applicable Plan Year.

 

(d)           Separate Elections.  To the extent permitted by the Administrator, a Participant may make separate elections as to the time and form of distribution for base salary, Annual Bonus and any other compensation to be deferred with respect to each Plan Year, and for Matching Contributions and Discretionary Contributions to be made on behalf of the Participant for such Plan Year.

 

(e)           Absence of Election.  If a Participant fails to make an election with respect to the time or form of distributions for any Plan Year, the amount deferred by or on behalf of the Participant during such Plan Year shall be distributed in accordance with the most recent corresponding distribution election filed by the Participant with the Administrator.  If no such election has been filed, a Participant’s entire vested Account balance for such Plan Year shall be distributed to the Participant as a Separation Distribution in one lump sum.

  

10

  

 

8.           Election Changes

(a)           General.  A Participant may change the commencement date or form of a scheduled In-Service Distribution or Separation Distribution by filing an election change form with the Administrator, provided that: (i) the election change is made at least twelve (12) months before the scheduled payment date; (ii) the election change will not take effect until at least twelve (12) months after the election is made; and (iii) the payment to which the change applies is postponed to a date at least five (5) years later than previously scheduled.  A Participant may not change the
scheduled commencement date of an In-Service Distribution with respect to any Plan Year more than two (2) times.  For purposes of the Plan, if a Participant elects to receive a distribution in installments, each installment payment shall be treated as a separate payment, as described in Treasury Regulations Section 1.409A-2(b)(2).

 

(b)           Changes During Section 409A Transition Period.  Notwithstanding anything in the Plan to the contrary, pursuant to transition relief promulgated under Section 409A of the Code, including Internal Revenue Service Notices 2005-1, 2006-79 and 2007-86, at any time prior to January 1, 2009, if and to the extent permitted by the Administrator, a Participant may change the commencement date or form of a scheduled In-Service Distribution or Separation Distribution by filing with the Administrator an election change in such form as may be prescribed by the Administrator; provided,
however, that such election may only apply to amounts that would not otherwise be payable in the calendar year in which the election change is made, and may not cause an amount to be paid in the calendar year in which the election change is made that would not otherwise be payable in such calendar year.

 

9.           Vesting

 

(a)           Savings Contribution Account.  A Participant shall be fully vested in his Savings Contribution Account at all times.

 

(b)           Matching Contribution Account.  A Participant shall become vested in his Matching Contribution Account in accordance with the following schedule (where the vesting period commences on the Participant’s date of hire), provided that he has not incurred a Separation from Service before the applicable vesting date:

 

	
Years of Service

	 	 	
Vested Percentage

	 
	1	 	 	 	0	%
	2	 	 	 	20	%
	3	 	 	 	40	%
	4	 	 	 	60	%
	5	 	 	 	80	%
	6	 	 	 	100	%

Notwithstanding the foregoing, effective as of January 1, 2007, any unvested portion of a Participant’s Matching Contribution Account will become fully vested in the event of the occurrence of any of the following events before the Participant’s Separation from Service: (i) a Change of Control; (ii) the attainment by the Participant of age sixty-five (65); (iii) the Participant’s incurring a Disability; or (iv) the death of the Participant.  Notwithstanding the foregoing: (i) a Participant who is employed by a Participating Employer on January 1, 2011 shall be fully vested in his Matching Contribution Account attributable to Plan Years ending on or prior to December 31, 2010; and (ii) a
Participant shall at all times be fully vested in the portion of his Matching Contribution Account attributable to Matching Contributions made by a Participating Employer with respect to Plan Years commencing on or after January 1, 2011.

  

11

  

(c)           Discretionary Contribution Account.  Discretionary Contributions will be subject to a vesting schedule established by the Administrator at the time of the Contribution.

 

(d)           Forfeitures.  Any portion of an Account in which a Participant is not fully vested as of the date of his Separation from Service shall be forfeited.

 

10.          Accounts

 

(a)           Establishment and Crediting of Accounts.  The Company shall establish and maintain an Account for each Participant for each Plan Year and shall credit Contributions made on behalf of the Participant with respect to each Plan Year as follows:

 

(i)           Savings Contributions shall be credited to a separate Savings Contribution Account maintained on behalf of the Participant on the books and records of the Company.

 

(ii)          Matching Contributions shall be credited to a separate Matching Contribution Account maintained on behalf of the Participant on the books and records of the Company.

 

(iii)         Discretionary Contributions shall be credited to a separate Discretionary Contribution Account maintained on behalf of the Participant on the books and records of the Company.

 

(b)           Timing of Crediting of Accounts.  The amount of each Participant’s Savings Contribution shall be credited to the Participant’s Savings Contribution Account within five (5) business days of the date on which such amount would have been paid to the Participant but for the Participant’s election to defer receipt thereof.  The amount of each Participant’s Matching Contributions and Discretionary Contributions, if any, shall be credited to the Participant’s Account at such times as designated by the Administrator.  Unless
otherwise determined by the Administrator, an amount credited to a Participant’s Account shall be deemed invested in the Investment Options as described in Section 11 as of the date on which such amount would have been paid to the Participant but for the Participant’s election to defer receipt thereof.

 

11.         Notional Investment of Accounts

 

(a)           Investment Options.  Amounts credited to a Participant’s Account shall be deemed to be invested, at the Participant’s direction, in one or more Investment Options specified from time to time by the Administrator.  The Administrator may change or discontinue any Investment Option available under the Plan in its discretion, and may disregard any Participant’s investment directions.  The Administrator shall credit or debit each Participant’s Account to the extent notionally invested in each Investment Fund with earnings or losses by
multiplying the relevant portion of the Account balance as of the previous Valuation Date by the net investment return for such Investment Fund for the period.  The amounts of hypothetical income and appreciation and depreciation in the value of a Participant’s Account shall be credited and debited to such Account on a daily basis or as otherwise determined by the Administrator.

 

  

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(b)           Allocation and Reallocation of Investments.  A Participant may allocate or reallocate amounts credited to his Account to one or more of the Investment Options authorized under the Plan in a manner determined by the Administrator.  Changes to a Participant’s investment elections shall be effective as of the next Valuation Date.  The Administrator may, in its discretion, restrict allocation or reallocation by specified Participants into or out of specified Investment Options or specify minimum amounts that may be allocated or reallocated by
Participants.

 

(c)           Default Investment Options.  The Administrator may from time to time designate one or more Investment Options as “default” Investment Options for the notional investment of the Account balances of Participants who fail to make an investment direction pursuant to Section 11(a).

 

12.          Payment of Benefits

 

(a)           In-Service Distributions.  In-Service Distributions of a Participant’s Savings Contribution Account shall be made in accordance with the Participant’s election, subject to the following:

 

(i)           If a Participant has elected to receive an In-Service Distribution in installments, the distribution will be made in installments only if the Participant’s aggregate Savings Contribution Account under the Plan, valued as of the first such distribution date, when aggregated with the Participant’s total account balance under the Old Plan that is attributable to the Participant’s compensation deferrals, is not less than $25,000.  If the Participant’s total Savings Contribution Account as of such date is less than $25,000, such In-Service Distribution shall be made in a single lump sum on the date of the first
scheduled In-Service Distribution.

 

(ii)           No In-Service Distribution shall be made to a Participant if the amount of the distribution is less than $5,000 as of the scheduled In-Service Distribution date.  Any such amount shall be distributed to the Participant in accordance with the Participant’s Separation Payment election for such Plan Year or, if none, in a single lump sum upon the Participant’s Separation from Service.

 

(b)           Separation Distributions.  A Participant’s vested Account balance shall be distributed in accordance with his Separation Distribution elections upon the Participant’s Separation from Service; provided however that Separation Distributions shall be made in a single lump sum and not in the form of installment payments elected by the Participant if (1) the Participant’s total vested Account balance under the Plan as of the date of his Separation from Service (excluding any amounts which the Participant has elected to be paid as In-Service Distributions), when
aggregated with his total vested account balance under the Old Plan, is less than $50,000; or (2) the Participant dies prior to his Separation from Service without having made a separate election designating the time and form of payment for distribution of his Account upon his death.

 

  

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(c)           Acceleration of Certain In-Service Distributions.  If a Participant who has elected to receive an In-Service Distribution of all or a portion of his Savings Contribution Account incurs a Separation from Service for any reason prior to payment of all scheduled In-Service Distributions, all remaining scheduled In-Service Distributions shall be made to the Participant (or to his Beneficiary in the event of his death) in a single lump sum.

 

(d)           Delayed Distributions to Specified Employees.  Notwithstanding anything in the Plan to the contrary, except where a Participant incurs a Separation from Service by reason of death, no distribution of a Participant’s vested Account balance shall be made upon the Participant’s Separation from Service (including any accelerated distribution of scheduled but unpaid In-Service Distributions in accordance with Section 12(c)) if he is a Specified Employee as of the date of his Separation from Service until the first business day of the seventh month after the date of
the Specified Employee’s Separation from Service (or, if earlier, upon the date of his death).  On such date, any amounts that would otherwise have been paid to the Participant during the period between the Participant’s Separation from Service and such date shall be aggregated and, after adjustment pursuant to Section 11 for notional investment earnings or losses during the period of the delay, shall be paid in full to the Participant, and any succeeding payments shall continue as scheduled.

 

13.         Timing of Payments

 

Subject to Section 12(d) with respect to Specified Employees, payments due to a Participant under the Plan shall be made as follows:

 

(a)           Lump Sum Payments.

 

(i)           In-Service Distributions.  Lump sum In-Service Distributions will be paid in the calendar year specified by the Participant, on or about March 1 of such year, and shall have a Valuation Date of the February 28 immediately preceding such payment date.

 

(ii)           Separation Distributions.  Lump sum Separation Distributions (including those made upon a Participant’s death) shall be made as soon as practicable in the calendar quarter following the calendar quarter in which the Participant’s Separation from Service occurs, or, if the Participant has elected to defer the payment of a Separation Distribution in accordance with Section 8, on the date selected by the Participant.  Such lump sum payments shall have a Valuation Date as of the last day of the calendar quarter ending prior to the calendar quarter in
which the distribution is paid.

 

(b)           Installment Payments.

 

(i)           In-Service Distributions.  If a Participant elects to have an In-Service Distribution made to him in annual installments, each installment payment shall be made in the scheduled year, on or about March 1 of such year, and shall have a Valuation Date of the February 28 immediately preceding the installment payment date.

 

  

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(ii)           Separation Distributions.  If a Participant elects to have a Separation Distribution (including a Separation Distribution made upon the Participant’s death) made to him in annual installments, the first installment shall be payable as soon as administratively practicable in the calendar quarter following the calendar quarter in which the Participant’s Separation from Service occurs, or, if the Participant has elected to defer the commencement date of his Separation Distributions in accordance with Section 8, upon the date selected.  Such first
installment shall have a Valuation Date as of the last day of the calendar quarter ending prior to the calendar quarter in which the distribution is paid.  Subsequent installments shall be payable annually, on or about each March 1, and shall have a Valuation Date of the immediately preceding February 28.

 

14.          Unforeseeable Emergency Distributions

 

(a)           If, upon the written application of a Participant, the Administrator determines that the Participant has suffered an Unforeseeable Emergency, then the Administrator may authorize a distribution from the Participant’s vested Account balance.  No payments shall be made pursuant to this Section 14 in the event that such Unforeseeable Emergency is or may be relieved through reimbursement or compensation by insurance or otherwise, or by liquidation of the Participant’s assets, to the extent that liquidation of such assets would not itself cause severe financial hardship, as determined by the Administrator.  Distributions
pursuant to this Section 14 shall be no less than $5,000, or the Participant’s total remaining vested Account balance, if less than $5,000.

 

(b)           The amount of any distribution made on account of an Unforeseeable Emergency shall not exceed the amount reasonably necessary to satisfy the financial need, including amounts necessary to pay any Federal, state or local income taxes or penalties reasonably anticipated to result from the distribution, as determined by the Administrator.

 

(c)           Distributions on account of an Unforeseeable Emergency will be paid in a single lump sum as soon as administratively practicable following approval of the Administrator, and shall have a Valuation Date as of the last day of the month prior to the month in which the distribution is paid.

 

(d)           If a Participant receives a distribution on account of an Unforeseeable Emergency, the Participant may make no further Savings Contributions to the Plan for the balance of the Plan Year or the following Plan Year.

 

15.         Acceleration of Payments Upon Certain Events

 

Notwithstanding anything in this Plan to the contrary, the Administrator, in its sole discretion, may accelerate payment of all or any portion of a Participant’s vested Account balance upon the occurrence of any of the events described in this Section 15.  A determination of whether a payment qualifies for acceleration under this Section 15 shall be made by the Administrator, in its sole discretion, in accordance with Section 1.409-3(j)(4) of the Treasury Regulations.

 

  

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(a)           Domestic Relations Order.  The Administrator may in its sole discretion accelerate payment of all or any portion of a Participant’s vested Account balance to the extent necessary to comply with a domestic relations order (as defined in Code Section 414(p)(1)(B)) which requires any payments otherwise due to the Participant under the Plan to be made to an individual other than the Participant.

 

(b)           Limited Cashouts.  The Administrator may in its sole discretion accelerate payment of all or any portion of a Participant’s vested Account balance to the extent that: (1) the aggregate amount of the Participant’s vested Account that remains unpaid under the Plan does not exceed the applicable dollar amount under Code Section 402(g)(1)(B); (2) the accelerated payment results in the termination of the entirety of the Participant’s interest under the Plan and all other agreements, plans and arrangements aggregated with the Plan under Treasury Regulations
Section 1.409A-1(c)(2); and (3) the Administrator’s decision to cash out the Participant’s remaining interest under the Plan pursuant to this paragraph (b) is evidenced in writing no later than the cashout date.

 

(c)           Payment of Employment Taxes.  The Administrator may in its sole discretion accelerate payment of all or any portion of a Participant’s vested Account balance to pay: (i) the Federal Insurance Contributions Act (FICA) tax imposed under Code Sections 3101 and 3121(a) and (v)(2) on compensation deferred under the Plan (the “FICA Amount”); and/or (ii) income tax at source on wages imposed under Code Section 3401 or the corresponding withholding provisions of applicable state, local, or foreign tax laws as a result of the payment of the FICA Amount, and the
additional income tax at source on wages attributable to the pyramiding Code Section 3401 wages and taxes; provided, however, that the total payment under this paragraph (c) shall not exceed the aggregate of the FICA Amount and the income tax withholding related to such FICA Amount.

 

(d)           Payment Upon Income Inclusion Under Section 409A.  The Administrator may in its sole discretion accelerate payment of all or any portion of a Participant’s vested Account balance if the Plan fails to meet the requirements of Section 409A of the Code and the applicable regulations; provided that any payment made pursuant to this paragraph (d) may not exceed the amount required to be included by the Participant in income as a result of the failure to comply with the requirements of Code Section 409A.

 

(e)           Termination of the Plan.  The Administrator may in its sole discretion accelerate payment of all or any portion of a Participant’s vested Account balance upon termination of the Plan in accordance with Treasury Regulations Section 1.409A-3(j)(4)(ix).

 

(f)           Payment of State, Local or Foreign Taxes.  The Administrator may in its sole discretion accelerate payment of all or any portion of a Participant’s vested Account balance for payment of: (i) state, local, or foreign tax obligations of the Participant arising from payments under the Plan which apply to any such amounts before they are paid or made available to the Participant; and/or (ii) the income tax at source on wages imposed under Code Section 3401 as a result of such payment, and the additional income tax at source on wages imposed under Code Section 3401
attributable to such additional Code Section 3401 wages and taxes.  The total payment under this paragraph (f) shall not exceed the aggregate of the state, local, and foreign tax amount and the income tax withholding related to such state, local, and foreign tax amount.  Any such payment shall be made, in the Administrator’s discretion, either by (X) distributions to the Participant in the form of withholding pursuant to provisions of applicable state, local, or foreign law; or (Y) distribution directly to the Participant.

 

  

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(g)           Certain Offsets.  To the extent permitted by applicable law, the Administrator may in its sole discretion accelerate payment of all or any portion of a Participant’s vested Account balance in satisfaction of a debt of the Participant to a Participating Employer, where such debt is incurred in the ordinary course of the service relationship between the Participant and the Participating Employer; provided, however, that (i) the entire amount of any such accelerated payment in any of the Participant’s taxable years does not exceed $5,000; and (ii) the reduction is
made at the same time and in the same amount as the debt otherwise would have been due and collected from the Participant.

 

(h)           Bona Fide Disputes as to a Right to a Payment.  The Administrator may in its sole discretion accelerate payment of all or any portion of a Participant’s vested Account balance to the extent that the accelerated payment is made as part of a settlement between the Participant and a Participating Employer of an arm’s length, bona fide dispute as to the Participant’s right to the payment.

 

16.         Compliance with Code Section 162(m)

 

It is the intent of the Company that any compensation deferred under the Plan by a Participant who is, with respect to the year of payout, deemed by the Administrator to be a “covered employee” within the meaning of Code Section 162(m) and regulations thereunder, which compensation constitutes “qualified performance-based compensation” within the meaning of Code Section 162(m) and regulations thereunder, shall not, as a result of deferral under the Plan, become nondeductible by the Company as a result of the application of Code Section 162(m).  If the Administrator reasonably anticipates that any payment otherwise required to be made to a Participant under the Plan would not be
deductible in the year of the payment by reason of the application of Code Section 162(m), such payment shall be deferred until the Participant’s first taxable year in which the Administrator reasonably anticipates that the deduction of the payment will not be limited or eliminated by application of Code Section 162(m), or (subject to Section 12(d)), until the period beginning with the date of the Participant’s Separation from Service and ending with the later of the last day of the calendar year in which the Separation from Service occurs and the fifteenth day of the third month following such Separation from Service.  Notwithstanding the foregoing, no payment under the Plan may be deferred in accordance with this Section 16 unless all scheduled payments to the Participant that could be delayed in accordance with Treasury Regulations Section 1.409A-2(b)(7)(i) are
also delayed.

 

17.         Administration

 

(a)           Administrator.  The Company, or such other organization, committee or individual as may be designated by the Company from time to time, shall be the Administrator.

 

  

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(b)           Powers of Administrator.  The Administrator shall be charged with the general administration of the Plan and shall have all powers necessary or appropriate to accomplish its duties under the Plan.  The Administrator shall administer the Plan in accordance with its terms.  Any determination by the Administrator shall be made in its sole and absolute discretion and shall be conclusive and binding upon all persons.  The powers and responsibilities of the Administrator shall include, without limitation, the following:

 

(i)           Determining all questions relating to the eligibility of an employee to participate in the Plan or remain a Participant;

 

(ii)          Computing and certifying the amount and the kind of benefits to which any Participant may be entitled;

 

(iii)         Establishing procedures, correcting defects, supplying information, and reconciling inconsistencies in any manner and to whatever extent is deemed necessary or advisable to carry out the purpose of this Plan;

 

(iv)        Authorizing and directing disbursements from the Trust;

 

(v)         Determining all questions arising in connection with the administration, interpretation and application of the Plan;

 

(vi)        Maintaining all necessary records for the administration of the Plan;

 

(vii)       Making and publishing rules and regulations that are consistent with the terms hereof;

 

(viii)      Determining the short and long-term liquidity needs of the Plan; and

 

(ix)         Assisting any Participant regarding his rights, benefits, or elections available under the Plan.

 

(c)           Limitation of Liability.  The Administrator shall be entitled to, in good faith, rely or act upon any report or other information furnished to it by any officer or other employee of the Company or any subsidiary or affiliated entity, the Company’s independent certified public accountants, or any executive compensation consultant, legal counsel, or other professional retained by the Company to assist in the administration of the Plan.  To the maximum extent permitted by law, no member of any committee appointed as Administrator and no person to whom
ministerial duties have been delegated shall be liable to any person for any action taken or omitted in connection with the interpretation and administration of the Plan.  The Company agrees to indemnify and hold harmless each person who serves as a member of any committee acting as Administrator to the fullest extent permitted by law for all acts done in good faith and without gross negligence, including defense of all litigation, including legal fees.

 

  

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18.         Claim and Appeal Procedure

 

(a)           Any Participant or other person claiming an interest in the Plan (the “Claimant”) may file a claim in writing with the Administrator.

 

(b)           The denial of any claim under the Plan shall be communicated in writing or in electronic form by the Administrator to the Claimant (or the Claimant’s authorized representative) within ninety (90) days of receipt of the claim, unless the Administrator determines that special circumstances beyond the control of the Plan require an extension of time, in which case the Administrator may have up to an additional ninety (90) days to process the application.  If the Administrator determines that an extension of time for processing is required, the Administrator shall furnish written or electronic notice of the extension to the Claimant
before the end of the initial ninety (90) day period.  Any notice of extension shall describe the special circumstances necessitating the additional time and the date by which the Administrator expects to render its decision on the application.

 

(c)           The written or electronic notice of denial shall be set forth in a manner designed to be understood by the Claimant, and shall include specific reasons for the denial, specific references to the Plan provision(s) upon which the denial is based, a description of any information or material necessary for the Claimant to perfect his claim, an explanation of why such material or information is necessary, and an explanation of the Plan’s review procedures and the time limits applicable to such procedures, including a statement of the Claimant’s right to bring a civil action under ERISA following an adverse determination on
review.  If a Claimant has not received notification of the Administrator’s determination within ninety (90) days (or such extended period as may be applicable), the Claimant shall be entitled to pursue any remedies available to him under ERISA.

 

(d)           Any Claimant whose claim is denied in accordance with paragraph (c) shall have the right to request the review of such denial within seventy-five (75) days of receipt of written or electronic notice of the denial.  Such request for review must be in writing and directed to the Administrator.

 

(e)           The Administrator shall have sixty (60) days to process the application for review unless the Administrator determines that special circumstances beyond the control of the Plan require an extension of time, in which case the Administrator may have up to an additional sixty (60) days to process the application.  If the Administrator determines that an extension of time for processing is required, the Administrator shall furnish written or electronic notice of the extension to the Claimant before the end of the initial sixty (60) day period.  Any notice of extension shall describe the special circumstances necessitating the
additional time and the date by which the Administrator expects to render its decision on the application.

 

(f)           The Claimant will have the right to be represented at such review, to review all documents relevant to the claim, and to submit written comments, documents, records and other information relating to the claim.  The Claimant will be provided upon request and free of charge reasonable access to and copies of all documents, records and other information relevant to the Claimant’s claim.  Any review requested by the Claimant of a determination by the Administrator will take into account all comments, documents, records and other information submitted by the Claimant relating to the claim, without regard to whether such
information was submitted or considered in the initial benefit determination.  The Administrator shall respond electronically or in writing within sixty (60) days (or such extended period as may be applicable) after the receipt of the request for such review.  The decision on review shall include specific reasons for the decision, written in a manner calculated to be understood by the Claimant and with specific references to the relevant Plan provisions on which the decision is based.

 

  

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(g)           Any person submitting a claim in accordance with this section may withdraw the claim at any time or, with the consent of the Administrator, defer the date on which such claim shall be deemed filed for purposes of this Section 18.

 

(h)           For purposes of this Section 18, a document, record or other information is considered “relevant” to the Claimant’s claim if such document, record or other information (i) was relied upon by the Administrator in making the benefit determination; (ii) was submitted, considered or generated in the course of making the benefit determination, without regard to whether such document, record or other information was relied upon in making the benefit determination; or (iii) demonstrates compliance with the administrative processes and safeguards designed to ensure and to verify that that benefit claim determinations are made in
accordance with governing Plan documents and that, where appropriate, the Plan provisions have been applied consistently with respect to similarly situated Claimants.

 

(i)           The internal claims procedures under this Section 18 are mandatory.  If a Claimant fails to follow these claims procedures, or to timely file a request for review in accordance with this Section 18, the denial of the claim shall become final and binding on all persons for all purposes.

 

(j)           The determination whether to grant or to deny any claim under this Plan shall be made by the Administrator, in its sole and absolute discretion.  All determinations, constructions and interpretations made by the Administrator shall be conclusive and binding on all persons to the maximum extent permitted by law.

 

19.         Establishment of Trusts

 

The Company may, in its discretion, establish one or more grantor Trusts (including sub-accounts under such Trusts), and deposit therein amounts of cash or other property not exceeding the amount of the obligations of the Company and all other Participating Employers with respect to the Participants’ Accounts established under the Plan.  Other provisions of the Plan notwithstanding, the timing of allocations and reallocations of assets in the Participants’ Accounts, and the Investment Options available with respect to such Accounts, may reflect the timing of actual investments of the assets of such Trust(s) and the actual investments available to such Trust(s), all as determined in the sole
discretion of the Administrator.  The investments of the Trust(s) may include life insurance (including, but not limited to, variable life insurance), and such other assets as may be selected from time to time by the Administrator.

 

  

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20.          Amendment and Termination of the Plan

(a)           Amendment.  The Company, or its delegee, may at any time make such modifications of the Plan as it shall deem advisable.  All such amendments shall be in writing.  Except for amendments which the Company reasonably believes necessary or appropriate to avoid adverse tax consequences to Participants, including amendments designed to avoid the penalties and interest imposed by Section 409A of the Code, no amendment of the Plan may, without the consent of the Participant who has an Account balance under the Plan, adversely affect the rights of such
Participant under the Plan.

 

(b)           Termination.  Notwithstanding anything in the Plan to the contrary, subject to the terms of Section 409A of the Code, the Company may suspend, freeze or terminate the Plan at any time in its sole discretion by written action of the Company or its delegee.

 

(c)           Effect of Change of Control.  Notwithstanding the foregoing, upon the occurrence of a Change of Control, the Plan may not be amended in any way (except to the extent required by law) or terminated prior to the payment of amounts credited to Participants’ Accounts as of the date of the Change of Control, pursuant to the terms of the Plan and the Participants’ elections with respect thereto.

 

  

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21.         Participating Employers

 

(a)           Adoption of Plan.  Any member of the Selective Group may, by action of its board of directors, adopt this Plan for all or a portion of its eligible employees, provided that the Company approves such adoption.  The administrative powers and control of the Company as provided in the Plan shall not be deemed diminished under the Plan by reason of the participation of any member of the Selective Group in the Plan.

 

(b)           Withdrawal from Plan.  A Participating Employer may withdraw at any time from the Plan without affecting the other Participating Employers.  The Board of Directors of the Company may, in its discretion, terminate a Participating Employer’s participation in the Plan at any time when, in its judgment, such Participating Employer fails or refuses to discharge its obligations under the Plan.

 

22.         General Provisions

 

(a)           Limits on Transfer of Plan Benefits.  Except as otherwise provided herein, other than by will or the laws of descent and distribution, no right, title or interest of any kind in the Plan shall be transferable or assignable by a Participant or his Beneficiary or be subject to alienation, anticipation, encumbrance, garnishment, attachment, levy, execution or other legal or equitable process, nor subject to the debts, contracts, liabilities, engagements, or torts of any Participant or his Beneficiary.  Any attempt to alienate, sell, transfer, assign, pledge, garnish,
attach or take any other action subject to legal or equitable process or encumber or dispose of any interest in the Plan shall be void.  No loans shall be issued by the Plan against a Participant’s Account.

 

(b)           Receipt and Release.  Payments (in any form) to any Participant or Beneficiary in accordance with the provisions of the Plan shall be in full satisfaction of all claims for the compensation or awards deferred and relating to the Participant’s Account against the Company, all of its Affiliates, their respective boards of directors, officers, employees, and the Administrator, and the Administrator may require such Participant or Beneficiary, as a condition to such payments, to execute a receipt and release to such effect.

 

(c)           Unfunded Status of Accounts.  The Plan shall be maintained as an unfunded plan which meets the requirements of Sections 201(2), 301(a)(3) and 401(a)(1) of ERISA, and Participants shall rely solely on the unsecured promise of the Company or other applicable Participating Employer for payment hereunder.  Nothing contained in the Plan shall give a Participant any rights that are greater than those of a general unsecured creditor of the Company or other applicable Participating Employer; provided, however, that the Administrator may authorize the creation of Trusts
referred to in Section 19, or make other arrangements to meet the obligations of the Participating Employers under the Plan, which Trusts or other arrangements shall be consistent with the “unfunded” status of the Plan.

 

  

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(d)           Compliance.  A Participant in the Plan shall have no right to receive payment (in any form) with respect to his Account until legal and contractual obligations of the Company relating to establishment and maintenance of the Plan and the making of such payments shall have been complied with in full.  In addition, the Company shall impose such restrictions on any interest constituting a security as it may deem advisable in order to comply with the Securities Act of 1933, as amended, the requirements of NASDAQ or any applicable stock exchange or automated quotation
system, any state securities laws applicable to such a transfer, any provision of the Company’s Certificate of Incorporation or By-laws, or any other law, regulation, or binding contract to which the Company is a party.

 

(e)           No Employment Rights.  No provision of the Plan or transaction hereunder shall confer upon any Participant any right to be employed by the Company or any  subsidiary or affiliate thereof, or to interfere in any way with the right of any Participating Employer to increase or decrease the amount of any compensation payable to such Participant.  Subject to the limitations set forth in Section 22(a) hereof, the Plan shall inure to the benefit of, and be binding upon, the Company and Participants and their successors and assigns.

 

(f)            Legal Fees and Expenses.  On or after a Change of Control, the Company (or a successor who purchases substantially all of the assets of the Company) shall pay all reasonable legal fees and expenses which a Participant may incur in respect of obtaining from the Company (or such successor) any benefit to which he is entitled under the Plan.

 

(g)           Governing Law.  The Plan shall be construed, administered and enforced in accordance with the laws of the State of New Jersey to the extent that State law shall not have been preempted by the provisions of ERISA, or any other laws of the United States heretofore or hereafter enacted.

 

(h)           Tax Withholding.  The Company and each other Participating Employer shall have the right to deduct from amounts otherwise payable in settlement of a Participant’s Account under the Plan any sums that federal, state, local, social security or foreign tax law requires to be withheld with respect to such payment.

 

(i)            Limitation.  A Participant and his Beneficiary shall assume all risk in connection with any decrease in value of the Participant’s Account, and neither the Company nor any Participating Employer nor the Administrator shall be liable or responsible therefor.

 

(j)            Gender and Number.  Where the context admits, words in the masculine gender shall include the feminine and the neuter genders, the singular shall include the plural, and the plural shall include the singular.

 

(k)           Severability.  In the event that any provision of the Plan shall be declared illegal or invalid for any reason, such illegality or invalidity shall not affect the remaining provisions of the Plan but shall be fully severable, and the Plan shall be construed and enforced as if such illegal or invalid provision had never been a part of the Plan.

 

(l)           Creditors’ Rights.  The maintenance of the Plan by the Company is not intended to, shall not, and shall not be deemed to, confer upon the Company, any other Participating Employer or any of their subsidiaries or affiliates any ownership or other legal or beneficial interest of any kind or nature in any Contributions (or any earnings thereon) actually contributed by any other party to the Plan, and no creditor, receiver, trustee, successor or assign or other party claiming any interest in the property or assets of any Participating Employer or any of its subsidiaries or
affiliates shall recover from, or claim any interest in, the Plan or Trust, if any, in excess of the Contributions (and any earnings thereon) actually contributed by the party to the Plan through or against whom such entity asserts its claim or interest.

 

  

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(m)           Required Notification to Administrator.  Each Participant or his Beneficiary entitled to payments hereunder shall file with the Administrator from time to time in writing his post office address and each change of post office address.  Any check representing payment hereunder and any communication addressed to a Participant, or his Beneficiary at the last address filed with the Administrator, or if no such address has been filed, then at his last address as indicated on the records of the Company, shall be binding on such person for all purposes of the
Plan.

 

(n)           Facility of Payment.  Whenever and as often as any person entitled to payments hereunder shall be under a legal disability, or in the sole judgment of the Administrator shall otherwise be unable to apply such payments to his own best interest and advantage, the Administrator, in the exercise of its discretion, may, but is not required to, direct all or any portion of such payments to be made in any one or more of the following ways:

 

(i)           directly to such person;

 

(ii)          to his legal curator, guardian, or conservator, or other court-appointed or court-recognized representatives; or

 

(iii)         to his spouse, to another member of his family, or to any other person, to be expended for his benefit.

 

(o)           Notices and Other Communications.  Except as determined by the Administrator with respect to elections, any notice or other communication to be provided under any provision of the Plan shall be in writing and shall be personally delivered, sent by overnight courier, sent by telecopier or facsimile transmission, or mailed by first class, registered or certified mail, postage prepaid, return receipt requested.  Any such notice shall be deemed to have been duly given if personally delivered when delivered, if mailed five days after mailing, if sent by telecopier when
confirmed, and if sent by overnight courier one business day after delivery to such courier.  All notices to be given to the Company shall be addressed to it at its principal office in care of the Company’s Corporate Secretary, or at such other address(es) as it may designate by like notice.  All notices to be given to a Participant (or a Beneficiary) shall be addressed to the Participant at the most recent business or home address appearing in the Company’s records.

 

  

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IN WITNESS WHEREOF, this Selective Insurance Company of America Deferred Compensation Plan (2005), As Amended and Restated Effective as of January 1, 2010, has been duly executed on this 11th day of November, 2010.

 

	  	
SELECTIVE INSURANCE COMPANY

	 
	  	
OF AMERICA

	 
	  	  	  	 
	  	
By:

	
/s/ Michael H. Lanza

	 
	  	
Name: 

	
Michael H. Lanza

	 
	  	
Title:

	
Executive Vice President and

	 
	  	  	
General Counsel

	 

  

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APPENDIX A

 

VESTING OF ACCOUNTS FOR PARTICIPANTS

AFFECTED BY 2008 TRANSITION PROGRAM

 

Notwithstanding anything in Section 9 of the Plan to the contrary, if a Participant incurs a Separation from Service as the result of an involuntary termination of the Participant’s employment with the Selective Group in connection with the 2008 Transition Program, any unvested portion of the Participant’s Matching Contribution Account shall become fully vested as of the date of the Participant’s Separation from Service.

 

  

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