Document:

1st Amendment to Inter-Island Industrial Fuel Oil & Diesel Fuel Supply Contract

 HECO Exhibit 10(b) 
  
 FIRST AMENDMENT TO 
 INTER-ISLAND INDUSTRIAL FUEL OIL AND DIESEL FUEL SUPPLY CONTRACT 
 BY AND BETWEEN 
 BHP PETROLEUM AMERICAS REFINING INC. 
 AND

 HAWAIIAN ELECTRIC COMPANY, INC.; 
 MAUI ELECTRIC COMPANY, LIMITED; 
 AND 
 HAWAII ELECTRIC LIGHT COMPANY, INC. 
  
 This First Amendment to Inter-Island Industrial Fuel Oil and Diesel Fuel Supply Contract (“Amendment”), dated March 29, 2004 is entered into between Tesoro Hawaii Corporation fka BHP Petroleum Americas Refining Inc., a Hawaii
corporation (hereinafter referred to as “Tesoro” or “SELLER”) and Hawaiian Electric Company, Inc. (“HECO”), and its wholly-owned subsidiaries Maui Electric Company, Limited (“MECO”), and Hawaii Electric Light
Company, Inc. (“HELCO”), each a Hawaii corporation (HECO, MECO and HELCO hereinafter collectively referred to as “BUYER”). 
  
 WHEREAS, BHP Petroleum Americas Refining Inc. entered into that certain Inter-Island Industrial Fuel Oil and Diesel Fuel Supply Contract dated November
14, 1997, effective as of January 1, 1998 (the “Contract”); and 
  
 WHEREAS, on or about June 1, 1998, Tesoro Petroleum Corporation purchased the stock of BHP Petroleum Americas Refining Inc., and thereafter changed the name of BHP Petroleum Americas Refining Inc. to Tesoro Hawaii
Corporation; and 
  
 WHEREAS, the Contract provided for the sale
by SELLER and purchase by BUYER of Industrial Fuel Oil (“Fuel Oil”) and Diesel Fuel (also “Diesel”) for the period from January 1, 1998 through December 31, 2004, with provision for additional terms of 12-months each 

  

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beginning each successive January 1, unless BUYER or SELLER gives written notice of termination at least 120 days prior to the expiration of the then current
term; and 
  
 WHEREAS, SELLER and BUYER desire to extend the
original term of the Contract for an additional ten-year period under the existing terms and conditions of the Contract, subject to the amendments noted herein; 
  

NOW THEREFORE, the parties agree to amend the Contract as follows, effective as of January 1, 2005: 
  
 1. All references to “BHP” or “BHP Petroleum Americas Refining Inc.” in
the title of and throughout the Contract shall be replaced by “Tesoro Hawaii Corporation”. 
  
 2. Article I (“Definitions,”), Section 1.1, is hereby amended by amending the definitions of “Month of Delivery” and “Original Term,” to read as follows: 
  
 “36. “Month of Delivery” means the calendar month during
which the physical Delivery is completed which is indicated by the cessation of pumping of Product.” 
  
 “38. “Original Term” means the first term of this Contract, which commences January 1, 1998 and concludes December 31, 2014.”

  

 2 

 3. Article II (“Term”) is hereby amended in its entirety to read as follows: 
  
 “The Original Term of this Contract shall be from January 1, 1998
through December 31, 2014, and continue for Additional Terms, unless BUYER or SELLER gives written notice of termination at least one hundred twenty (120) Days before the beginning of an Additional Term.” 
  
 4. Article III (“Quantity”), Section 3.1 (“Minimum and Maximum Annual
Quantities”) is hereby amended in the first paragraph by replacing the phrase “1999-2004” in the table setting forth the Fuel Oil annual physical quantities with “1999-2014/Additional Term” and by
also replacing the phrase “1999-2004” in the table setting forth the Diesel annual physical quantities with “1999-2014/Additional Term”; and in the third paragraph by replacing the phrase
“2004” with “2014.” 
  
 5. Article V (“Price, BTU
Determination”), Section 5.1 (“Fuel Oil Price”) is hereby amended in the first paragraph by replacing the phrase “1999-2004” in the table setting forth the
[            ] with “1999-2014/Additional Term” and by also replacing the phrase “2004” with “2014” in the immediately following
sentence. 
  
 6. Article V (“Price, BTU
Determination”), Section 5.2 (“Diesel Price”) is hereby amended in the first paragraph by replacing the phrase “1999-2004” in the table setting forth the
[            ] with “1999-2014/Additional Term” and by also replacing the phrase “2004” with “2014” in the immediately following sentence;
and is hereby further amended in the second paragraph by replacing the phrase “1999-2004” in the table setting forth the [            ] 
  

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[            ] with “1999-2014/Additional Term” and by also
replacing the phrase “2004” with “2014” in the immediately following sentence. 
  
 7. Article VI (“Payment”), Section 6.2 (“Method of Payment”) is hereby updated by amending SELLER’S wire transfer information as follows:

  
 “Bank One, Chicago, Illinois 
  
 ABA# 071000013 
  
 Tesoro Hawaii Corporation 
  
 Account # 5563631” 
  
 8. Article XV (“Entire Agreement, Waiver and Illegality”), Section 15.2 (“Notices”) is hereby clarified and updated by amending it in its entirety to
read as follows: 
  
 “Except as otherwise expressly provided
herein, all notices shall be given in writing, by letter, electronic mail, or facsimile to the following addresses, or such other addresses as the parties may designate by notice, and shall be deemed given upon receipt, provided that notice sent by
mail shall be deemed to have been given on the date of actual delivery or at the expiration of the fifth day after the date of mailing, whichever is earlier. 
  

			
	SELLER:	  	Tesoro Hawaii Corporation
	 	  	P.O. Box 3379
	 	  	Honolulu, Hawaii 96842
	 	  	Attn: Manager Utility Fuel Sales
	 	  	Facsimile: (808) 547-3336

  

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	BUYER:	  	Hawaiian Electric Company, Inc.
	 	  	P. O. Box 2750
	 	  	Honolulu, Hawaii 96840
	 	  	Attn: Director Fuels Resources, Power Supply Process Area, Mail
	 	  	Stop WP-2/IF
	 	  	Facsimile: (808) 543-4207

  
 The Director Fuel Resources, Power
Supply Process Area, for Hawaiian Electric Company, Inc. shall be responsible for forwarding notices to the other parties to this Contract.” 
  
 9. Article XVI [            ] is hereby amended by replacing the phrase “the period
1999-2004” with “the period 1999-2014, plus any Additional Term thereafter.” 
  
 10. Addendum No. 2 (“Seller’s Facilities on Maui and Hawaii”), Section 17 (“Required Insurance”) is hereby amended by amending the first paragraph thereof in its entirety to read as follows:

  
 “Without in any way limiting BUYER’s liability
pursuant to this Contract, BUYER shall maintain and require any carrier to maintain the following insurance and all insurance that may be required under the applicable laws, ordinances, and regulations of any governmental authority: 
  

	 	i.	Workers’ Compensation and Employer’s Liability Insurance: 

  

	 	(a)	 As prescribed by applicable law, including insurance covering liability under the U.S. Longshore and Harbor Workers’ Compensation Act and the Outer Continental
Shelf Lands Act with voluntary compensation for marine 

  

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operations to include transportation, wages, maintenance and cure, and Jones Act Coverage where required. 

  

	 	(b)	Coverage B Employer’s Liability with a minimum limit of $500,000. 

  

	 	(c)	Endorsement to include a waiver of subrogation against SELLER. 

  

	 	ii.	Comprehensive General Liability Insurance: 

  

	 	(a)	Bodily Injury and Property Damage Insurance with a minimum combined single limit of $1,000,000 per occurrence for bodily injury and property damage liability. Deductible or
self-retention amount must be shown on certificate of insurance. 

  

	 	(b)	Such insurance shall include the following coverages: Products and Completed Operations and Personal Injury Liability. 

  

	 	(c)	SELLER shall be named as additional insured. 

  

	 	(d)	Endorsement to include a waiver of subrogation against SELLER. 

  

	 	iii.	Commercial Automobile Liability and Property Damage Liability Insurance: 

  

	 	(a)	Coverage for all owned, non-owned and hired vehicles used in receiving diesel from SELLER’s Neighbor Island Terminals with a minimum combined single limit of $1,000,000 per
occurrence for bodily injury and property damage liability. Coverage shall include an endorsement, form “CC 00 31 12 89, Changes in Business Auto and Truckers Policies – Mobile Equipment, Contractual Liability and Pollution (Hawaii),”
or its equivalent, to provide pollution liability coverage. Deductible or self-retention amount must be shown on certificates. 

  

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	 	(b)	If applicable, Motor Carrier Policies of Insurance for Public Liability Endorsement (Motor Carrier Act of 1980) Form MCS-90 must be provided with minimum limits of $1,000,000 Bodily
Injury and Property Damage per occurrence. 

  

	 	(c)	SELLER shall be named as additional insured. 

  

	 	(d)	Endorsement to include a waiver of subrogation against SELLER. 

  

	 	iv.	Excess (Umbrella) Liability Insurance: 

  

	 	(a)	Coverage with limits of liability not less than $5,000,000 per occurrence, and additional excess limits may be used to supplement inadequate limits in the primary policies required
in Coverage B Employer’s Liability Insurance and Comprehensive General Liability Insurance. 

  

	 	(b)	SELLER shall be named as additional insured. 

  

	 	(c)	Endorsement to include a waiver of subrogation against SELLER.” 

  
 11. Addendum No. 2 (“Seller’s Facilities on Maui and Hawaii”), Section 19 (“Notices”) is hereby updated by amending it in its entirety to read as
follows: 
  
 “Notices for the forecast of available diesel
storage capacity, arrival of BUYER’s Nominated Barge or delivery timing notification, diesel quality notifications, or transfer notifications shall be made to the following addresses: 
  

			
	MAUI:	  	 Tesoro Hawaii Corporation Terminals

	 	  	 Terminal Supervisor

	 	  	 140-A Hobron Avenue

	 	  	 Kahului, Hawaii 96732

	 	  	 Telephone: (808) 871 - 0817

	 	  	 Facsimile: (808) 871 - 0728

  

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	 	  	 Maui Electric Company, Ltd.

	 	  	 Production Department

	 	  	 P.O. Box 398

	 	  	 Kahului, Hawaii 96732

	 	  	 Telephone: (808) 442 - 4914

	 	  	 Facsimile: (808) 442 - 4975

		
	HAWAII:	  	 Tesoro Hawaii Corporation Terminals

	 	  	 Terminal Supervisor

	 	  	 607 Kalanianaole Avenue

	 	  	 Hilo, Hawaii 96720

	 	  	 Telephone: (808) 961 - 3177

	 	  	 Facsimile: (808) 969 - 1085

		
	 	  	 Hawaii Electric Light Co., Inc.

	 	  	 Production Department

	 	  	 P.O. Box 1027

	 	  	 Hilo, Hawaii 96720

	 	  	 Telephone: (808) 969 - 0423

	 	  	 Facsimile: (808) 969 - 0425”

  
 12. Exhibit A (“No. 6 Industrial
Fuel Oil Specifications”), and Exhibit B (“Diesel Specifications”), are hereby replaced by the Exhibit A and Exhibit B, respectively, attached hereto and incorporated by reference. 
  
 13. Exhibit C (“No. 6 Fuel Oil Example Price Calculation”) and Exhibit D
(“Diesel Example Price Calculation”), are hereby clarified and updated by replacing them with the Exhibit C and Exhibit D, respectively, attached hereto and incorporated herein by reference. 
  
 14. Except as expressly amended in this Amendment, the provisions of the Contract shall
remain in full force and effect, and exactly as written. 
  

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 IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to the Inter-Island Industrial
Fuel Oil and Diesel Fuel Supply Contract as of the day and year first written above. 
  

			
	TESORO HAWAII CORPORATION
		
	By	 	/s/    STEVE L. WORMINGTON        
	 	 	

	 Its
	 	 Steve L. Wormington
 (Printed or Typed Name)
  
 EVP Marketing

	
	SELLER
	
	HAWAIIAN ELECTRIC COMPANY, INC.
		
	By	 	/s/    THOMAS C. SIMMONS        
	 	 	

	 Its
	 	 Thomas C. Simmons
 (Printed or Typed Name)
  
 Vice President, Power Supply

		
	By	 	/s/    WILLIAM A. BONNET        
	 	 	

	 Its
	 	 William A. Bonnet
 (Printed or Typed Name)
  
 Vice President

	
	BUYER

  

 9 

			
	MAUI ELECTRIC COMPANY, LIMITED
		
	By	 	/s/    WILLIAM A. BONNET        
	 	 	

	 Its
	 	 William A. Bonnet
 (Printed or Typed Name)
  
 Vice President

		
	By	 	/s/    RICHARD A. VON GNECHTEN        
	 	 	

	 Its
	 	 Richard A. von Gnechten
 (Printed or Typed Name)
  
 Financial Vice President

	
	BUYER
	
	HAWAII ELECTRIC LIGHT COMPANY, INC.
		
	By	 	/s/    WILLIAM A. BONNET        
	 	 	

	 Its
	 	 William A. Bonnet
 (Printed or Typed Name)
  
 Vice President

		
	By	 	/s/    RICHARD A. VON GNECHTEN        
	 	 	

	 Its
	 	 Richard A. von Gnechten
 (Printed or Typed Name)
  
 Financial Vice President

	
	BUYER

  

 10 

 EXHIBIT A 
  

NO. 6 INDUSTRIAL FUEL OIL SPECIFICATIONS 
  

							
	 Specification - Test Item

	  	 Measurement Unit

	  	 Limits

	  	 ASTM
Method

	 GRAVITY @ 60 DEGREES F.
	  	Degrees API	  	6.5 Min.	  	 D-1298,
 D-4052-86

				
	 FLASH POINT
	  	Degrees F.	  	150 Min.	  	 D-93,
 D-6450

				
	 [___]
	  	[___]	  	[___]	  	[___]
	 	  	 	  	 	  	 [___]

	 	  	[___]	  	[___]	  	[___]
	 	  	 	  	[___]	  	[___]
	 	  	[___]	  	[___]	  	[___]
	 	  	 	  	[___]	  	[___]
	 	  	[___]	  	[___]	  	[___]
	 	  	 	  	[___]	  	[___]
				
	 POUR POINT
	  	Degrees F.	  	55 Max.	  	D-97,
	 	  	 	  	 	  	D-5949
				
	 [___]
	  	[___]	  	[___]	  	[___]
	 	  	 	  	 	  	[___]
	 	  	 	  	 	  	[___]
				
	 [___]
	  	[___]	  	[___]	  	[___]
	 	  	 	  	 	  	[___]
	 	  	 	  	 	  	[___]
				
	 [___]
	  	[___]	  	[___]	  	[___]
	 	  	 	  	 	  	[___]
				
	 SEDIMENT & WATER
	  	Percent, Volume	  	0.50 Max.	  	D-1796
				
	 HEAT VALUE, GROSS
	  	MM BTU/BBL	  	6.2 Min.	  	 D-240,
 D-4868

				
	 HEAT VALUE, NET
	  	MM BTU/BBL	  	Report	  	 D-240,
 D-4868

				
	 [___]
	  	 	  	 	  	 

  

 1 

 EXHIBIT B 
  

DIESEL SPECIFICATIONS 
  

							
	 Specification - Test Item

	  	 Measurement Unit

	  	 Limits

	  	 ASTM
Method

	 GRAVITY @ 60 DEGREES F.
	  	Degrees API	  	30.0 Min.	  	 D-1298,
 D-4052-86

				
	 SPECIFIC GRAVITY @ 60 DEGREES F.
	  	n/a	  	.88 Max.	  	 D-1298,
 D-4052-86

	 	  	 	  	 	  	 
				
	 VISCOSITY
	  	SSU At 104 DF	  	 32.3 Min.
 39.4 Max.
	  	 D-445,
 D-2161

	 	  	SSU At 100 DF	  	 32.6 Min.
 40.1 Max.
	  	 D-445,
 D-2161

	 	  	cSt At 100 DF	  	 1.9 Min.
 4.29 Max.
	  	 D-445,
 D-2161

	 	  	cSt At 104 DF	  	 1.9 Min.
 4.07 Max.
	  	 D-445,
 D-2161

				
	 FLASH POINT, PM
	  	Degrees F.	  	150 Min.	  	 D-93
 D-6450

				
	 [___]
	  	[___]	  	[___]	  	[___]
				
	 ASH
	  	PPM, Wt.	  	100 Max.	  	D-482
				
	 [___]
	  	[___]	  	[___]	  	[___]
				
	 CARBON RESIDUE 10% RESIDUUM
	  	Percent, Wt.	  	.35 Max.	  	D-524
				
	 SEDIMENT & WATER
	  	Percent, Volume	  	0.05 Max.	  	D-1796
				
	 [___]
	  	[___]	  	[___]	  	[___]
	 	  	 	  	 	  	[___]
	 	  	 	  	 	  	[___]
				
	 [___]
	  	[___]	  	[___]	  	[___]
	 	  	 	  	 	  	[___]
				
	 DISTILLATION, 90% RECOVERED
	  	Degrees F.	  	540 - 650	  	D-86
				
	 [___]
	  	[___]	  	[___]	  	[___]

  

 1 

							
	 [___]
	  	[___]	  	[___]	  	[___]
	 	  	 	  	 	  	 [___]

				
	 [___]
	  	[___]	  	[___]	  	[___]
	 	  	 	  	 	  	 [___]

				
	 * HEAT VALUE, GROSS
	  	MM BTU/BBL	  	5.86	  	 D-240,
 D-4868

				
	 HEAT VALUE, NET
	  	MM BTU/BBL	  	Report	  	 D-240,
 D-4868

  

	*	Typical value is shown; value is not a specification limit. 

  

 2 

 EXHIBIT C 
  
 No. 6 FUEL OIL EXAMPLE PRICE CALCULATION 
  
 Illustrative Price Calculation for October 2003 
  
 The price in U.S. Dollars (“USD”) per barrel of No. 6 Fuel Oil is determined Monthly pursuant to Section 5.1, as illustrated by
the following formula: 
  
 [___] 
  
 Where: 
 [___] 
 [___] 
 [___] 
 [___] 
  
 [___] 
 [___] 
 [___] 
 [___] 
 [___] 
 [___] 
 [___] 
 [___] 
 [___]

 [___] 
 [___] 
 [___] 
 [___] 
 [___] 
  
 [___] market price referencing the price of [___] 
 [___]
converted  
 from USD per metric ton to USD per barrel by dividing by 6.368. 
  

 1 

	i.	The [____] 

  
 on all dates of publication during the period beginning the 21st Day of the second Month preceding the Month of Delivery and ending the 20th Day of the Month preceding the Month of Delivery. 
  

							
	 Date of Price

	 	 Price in USD per Metric Ton

	 Date

	 	 Low

	 	 High

	 	 Average

	 [___]
	 	 [___]
	 	 [___]
	 	 [___][___]

	 [___]
	 	 [___]
	 	 [___]
	 	 [___][___]

	 [___]
	 	 [___]
	 	 [___]
	 	 [___][___]

	 [___]
	 	 [___]
	 	 [___]
	 	 [___][___]

	 [___]
	 	 [___]
	 	 [___]
	 	 [___][___]

	 [___]
	 	 [___]
	 	 [___]
	 	 [___][___]

	 [___]
	 	 [___]
	 	 [___]
	 	 [___][___]

	 [___]
	 	 [___]
	 	 [___]
	 	 [___][___]

	 [___]
	 	 [___]
	 	 [___]
	 	 [___][___]

	 [___]
	 	 [___]
	 	 [___]
	 	 [___][___]

	 [___]
	 	 [___]
	 	 [___]
	 	 [___][___]

	 [___]
	 	 [___]
	 	 [___]
	 	 [___][___]

	 [___]
	 	 [___]
	 	 [___]
	 	 [___][___]

	 [___]
	 	 [___]
	 	 [___]
	 	 [___][___]

	 [___]
	 	 [___]
	 	 [___]
	 	 [___][___]

	 [___]
	 	 [___]
	 	 [___]
	 	 [___][___]

	 [___]
	 	 [___]
	 	 [___]
	 	 [___][___]

	 [___]
	 	 [___]
	 	 [___]
	 	 [___][___]

	 [___]
	 	 [___]
	 	 [___]
	 	 [___][___]

	 [___]
	 	 [___]
	 	 [___]
	 	 [___][___]

	 [___]
	 	 [___]
	 	 [___]
	 	 [___][___]

  
 [___]:                                      
               [___] 
  

	ii.	Expressed in USD per barrel, converting to barrel from metric ton by dividing by 6.368. 

  
 = [___] / 6.368 Bbl/MT 
  
 [___] 
  
 [___] 
 [___] 
 [___] 
 [___] 
  

 2 

 Assume the following [___] this illustration: 
  
 [___] 
 [___] 
 [___]

  
 [___] 
 [___] 
 [___] 
  
 A = [___] 
  
 T = Taxes applicable to sale of Fuel Oil 
  

	i.	HGET = Currently 4.166% of pre-HGET price, excluding the Hawaii Environmental Response Tax; 

  

	ii.	Hawaii Environmental Response Tax applied after HGET = Currently $0.05 per barrel. 

  

	I.	Sample price computation for Fuel Oil ( [___] 

 [___] gross heat
content as determined 
 pursuant to Section 5.5 is in the range: [___] MM Btu per barrel) 
  
 P = [___] 
  
 [___] 
  
 [___] per barrel 
  

	II.	Sample price computation for Fuel Oil ( [___] 

 [____] Gross Heat
Content as determined pursuant to Section 5.5 is outside the 
 range: [___] MM Btu per barrel) 
  
 Assume [___] gross heat content of [___] MM Btu per barrel 
  
 P = [___] 
  
 [___] 
  
 [___] 
  
 [___] per barrel 
  

 3 

 EXPLANATION OF TAXES: 
  
 Taxes in the Fuel Oil price currently in effect include the Hawaii Environmental Response
Tax (currently $0.050 per barrel). Also, Hawaii State General Excise Tax (currently 4.166%) will be paid on all components of the Fuel Oil price, except at the execution of this Contract, the Hawaii Environmental Response Tax. 
  

 4 

 EXHIBIT D 
  
 DIESEL EXAMPLE PRICE CALCULATION 
  
 Illustrative Price Calculation for October 2003 
  
 The price in U.S. Dollars (“USD”) per gallon of Diesel is determined Monthly pursuant to Section 5.2, as illustrated by the
following formula: 
  
 [_____] 
  
 Where: 
 [___] 
 [___] 
 [___] 
 [___] 
 [___] 
 [___] 
 [___] 
 [___]

 [___] 
 [___]

 [___] 
 [___] 
 [___] 
 [___]  
 [___] 
 [___] 
 [___]

 [___] 
 [___] 
 [___] 
 [___] 
 [___] 
  

	DP =	market price referencing the price of [___] 

	    	[___] 

	    	[___] expressed in USD per gallon. 

  
 The [___] 
 [___] 
 [___]during the period beginning the 21st Day of the second Month preceding the Month of Delivery and ending the 20th Day of the Month preceding the Month of Delivery,
expressed in USD per gallon. 
  

 1 

							
	 Date of Price

	 	 Price in USD per gallon

	 	 	 Low

	 	 High

	 	 Average

	 [___]
	 	 [___]
	 	 [___]
	 	 [___]

	 [___]
	 	 [___]
	 	 [___]
	 	 [___]

	 [___]
	 	 [___]
	 	 [___]
	 	 [___]

	 [___]
	 	 [___]
	 	 [___]
	 	 [___]

	 [___]
	 	 [___]
	 	 [___]
	 	 [___]

	 [___]
	 	 [___]
	 	 [___]
	 	 [___]

	 [___]
	 	 [___]
	 	 [___]
	 	 [___]

	 [___]
	 	 [___]
	 	 [___]
	 	 [___]

	 [___]
	 	 [___]
	 	 [___]
	 	 [___]

	 [___]
	 	 [___]
	 	 [___]
	 	 [___]

	 [___]
	 	 [___]
	 	 [___]
	 	 [___]

	 [___]
	 	 [___]
	 	 [___]
	 	 [___]

	 [___]
	 	 [___]
	 	 [___]
	 	 [___]

	 [___]
	 	 [___]
	 	 [___]
	 	 [___]

	 [___]
	 	 [___]
	 	 [___]
	 	 [___]

	 [___]
	 	 [___]
	 	 [___]
	 	 [___]

	 [___]
	 	 [___]
	 	 [___]
	 	 [___]

	 [___]
	 	 [___]
	 	 [___]
	 	 [___]

	 [___]
	 	 [___]
	 	 [___]
	 	 [___]

	 [___]
	 	 [___]
	 	 [___]
	 	 [___]

	 [___]
	 	 [___]
	 	 [___]
	 	 [___]

  
 [___] in USD per
gallon:                                 [___] 
  
 [___] 
  
 [___] 
 [___]

 [___] 
 [___] 
  
 Assume the following [___] apply in this
illustration: 
  
 [___] 
 [___] 
 [___]

  
 Assume in this illustration that the [___] 
 [___] 
 thus 
  
 [___] 
  

 2 

 [___] 
 [___] 
 [___] 
 [___] 
 [___] 
 [___] 
  
     [___] 
  
     [___] 
     [___] 
  
     [___] 
     [___] 
  
     [___] 
     [___] 
  
 T = Taxes applicable to
sale of Diesel 
  

	i.	HGET = currently 4.166% of pre-HGET price, excluding the Hawaii Environmental Response Tax and Hawaii Liquid Fuel Fax; 

  

	ii.	Hawaii Environmental Response Tax applied after HGET = currently $0.05 per barrel; equivalent to $0.0012 per gallon; 

  

	iii.	Hawaii Liquid Fuel Tax applied after HGET = currently $0.01 per gallon. 

  

	I.	Price For Diesel Delivered into BUYER’S Nominated Barge on Oahu ( [___] [___] gross heat content is in the range: [___] Btu per gallon) 

  
 P = [___] 
  
 [___] 
  
 [___] per gallon; 
  

	II.	Price For Diesel Delivered into BUYER’S Nominated Barge on Oahu ( [___] [___] gross heat content is outside the range: [___] Btu per gallon) 

  
 Assume gross heat content, HC = [___] Btu per gallon 
  

 3 

 P = [___] 
  
 [___] 
  
 [___] 
  
 [___] per gallon

  

	III.	Price For Diesel Delivered [___] 

 [___] 
 [___] 
 [___] gross heat 
 content is in the range: [___] Btu Per gallon) 
  
 a. For Diesel Delivered [___] 
  
 [___] 
  
 P = [___] 
  
 [___] 
  
 [___] per gallon; 
  
 b. For Diesel Delivered to [___] 
  
 [___] 
  
 P = [___] 
  
 [___] 
  
 [___] per gallon; 
  
 c. For Diesel Delivered to [___]: 
  
 [___] 
  
 P = [___] 
  
 [___] 
  
 [___] per gallon; 
  

 4 

	IV.	Price For Diesel Delivered [___] 

  
 [___] 
 [___] 
 [___] gross heat 
 content is outside the range: [___] Btu per
gallon) 
  
 For Diesel Delivered to [___] 
  
 [___] 
  
 Assume gross heat content, HC = [___] Btu per gallon 
  
 P = [___] 
  
 [___] 
  
 [___] 
  
 [___] per gallon

  
 EXPLANATION OF TAXES: 

 
 Taxes in the Diesel price currently in effect include the Hawaii Environmental Response
Tax (currently $0.050 per barrel ($0.0012 per gallon) and the Hawaii Liquid Fuel Tax (currently $0.01 per gallon). Also, the Hawaii State General Excise Tax (currently 4.166%) will be paid on all components of the Diesel price, except at the
execution of this Contract, the Hawaii Environmental Response Tax and the Hawaii Liquid Fuel Tax. 
  

 51st Amendment to Low Sulfur Fuel Oil Supply Contract

 HECO Exhibit 10(c) 
  
 FIRST AMENDMENT TO 
 LOW SULFUR FUEL OIL SUPPLY CONTRACT 
 BY AND BETWEEN 
 CHEVRON PRODUCTS COMPANY, 
 A DIVISION OF CHEVRON U.S.A. INC. 
 AND 
 HAWAIIAN ELECTRIC COMPANY, INC.

  
 This First Amendment to Low Sulfur Fuel Oil Supply Contract
(“Amendment”) is entered into as of April 12, 2004 between Chevron Products Company, a Division of Chevron U.S.A. Inc., a Pennsylvania corporation (“Chevron”) and Hawaiian Electric Company, Inc., a Hawaii corporation
(“HECO”). 
  
 WHEREAS, Chevron and HECO entered into a
Low Sulfur Fuel Oil Supply Contract as of November 14, 1997, effective as of January 1, 1998 (the “Contract”); and 
  
 WHEREAS, the Contract provided for the sale by Chevron and purchase by HECO of Low Sulfur Fuel Oil (“LSFO”) and other petroleum products for the
period from January 1, 1998 through December 31, 2004, with provision for continuation of the term beginning each successive January 1, unless HECO or Chevron gives written notice of termination at least 120 days before the beginning of an
Extension; and 
  
 WHEREAS, Chevron and HECO desire to continue
the arrangement for the sale and purchase of LSFO and other petroleum products for an additional ten-year period under the terms and conditions of the Contract, subject to the amendments noted herein; 
  
 NOW THEREFORE, the parties agree as follows, effective as of January 1, 2005:

  

	1.	Article 1 (“Definitions”) is hereby amended by amending existing definitions “7”, “10”, “12”, “15”, “16”, “22”,
“29” and by adding new definitions, “32,” “33,” “34”, “35” and “36” as follows: 

  

	 	7.	“Black Oil Pipeline” means either Chevron’s 8 inch pipeline running from Barbers Point to Honolulu which can be used for transporting LSFO to the HECO fuel receiving
and storage facilities at Waiau and Iwilei in addition to the transportation of Chevron’s petroleum products or, one placed in service, shall also mean HECO’s 8 inch Waiau Fuel Pipeline running from Barbers Point to the HECO fuel receiving
and storage facilities at HECO’s Waiau Power Plant which will be the successor facility for routinely transporting fuel from Barbers Point to HECO’s storage facilities at Waiau. LSFO shall then be routinely transported to HECO’s
storage facilities at Iwilei by truck. 

  

 1 

	 	10.	“Contract” means this Low Sulfur Fuel Oil Supply Contract, between Chevron and HECO, the original term of which commenced January 1, 1998 and the amended term of which
commences January 1, 2005. 

  

	 	12.	“Deliver,” “Delivery,” “Deliveries” or “Delivered” refers to the transfer of title or physical movement of LSFO or Line Displacement Stock
sold by Chevron and purchased by HECO. 

  

	 	15.	“Extension” means successive 12-Month periods in the term of this Contract in addition to and after the initial term of this Contract as amended, which is through December
31, 2014, each Extension beginning January 1. 

  

	 	16.	“Facilities And Operating Contract” means that certain separate agreement by and between Chevron and HECO dated November 14, 1997 or, if applicable, any successor
agreements between the same parties that provide for the operations and maintenance of HECO’s BPTF, HECO’s Kahe Pipeline and HECO’s Black Oil Pipeline by Chevron and/or use of Chevron’s Black Oil Pipeline by HECO.

  

	 	22.	“Line Displacement Stock “ means, collectively for this purpose, Diesel Fuel No. 2, Chevron Industrial Fuel Oil No. 6 or Chevron Industrial Fuel Oil No. 5 Delivered to
either (i) displace LSFO from BPTF piping, HECO’s Kahe Pipeline, Chevron’s Black Oil Pipeline or HECO’s Black Oil Pipeline during any shutdown of operations of such facilities for reasons including but not limited to emergency,
inspection, repair, or maintenance; (ii) heat up BPTF piping, HECO’s Kahe Pipeline, Chevron’s Black Oil Pipeline or HECO’s Black Oil Pipeline subsequent to any shutdown; or (iii) be used as reasonably required for the use or operation
of such facilities in order to facilitate the movement of LSFO into HECO’s tankage at BPTF, Kahe, Waiau and Iwilei. 

  

	 	29.	“Pipeline Delivery” or “Pipeline Deliveries” means a Delivery of LSFO or Line Displacement Stock from Chevron’s Hawaii Refinery either (i) to HECO’s
petroleum receiving and storage tanks at BPTF via Chevron’s Refinery pipelines; (ii) where or if there exists a direct connection between Chevron’s Refinery pipelines and HECO’s Kahe Pipeline, to HECO’s petroleum receiving and
storage tanks at Kahe; (iii) by use of Chevron’s Black Oil Pipeline, to HECO’s petroleum receiving and storage tanks at Waiau, or Iwilei; or (iv) where or if there exists a direct connection between Chevron’s Refinery pipelines and
HECO’s Black Oil Pipeline, Delivery of LSFO or Line Displacement Stock from Chevron’s Hawaii Refinery to HECO’s petroleum receiving and storage tanks at Waiau. 

  

	 	32.	[___________________________________________________________________________________________________
____________________________________________________________________________________________________ ____________________________________________________________________________________________________ _________________] 

  

 2 

	 	33.	[___________________________________________________________________________________________________ _________________] 

  

	 	34.	[___________________________________________________________________________________________________
____________________________________________________________________________________________________ ___________________________________________________________________] 

  

	 	35.	[___________________________________________________________________________________________________
____________________________________________________________________________________________________ ________________________] 

  

	 	36.	[___________________________________________________________________________________________________
____________________________________________________________________________________________________ ___________________________________________] 

  

	2.	Article 2 (“Term of Contract”) is hereby amended by replacing it in its entirety to read as follows: 

  
 The term of this Contract shall be extended beyond December 31, 2004, for
the period commencing with January 1, 2005 and continuing through December 31, 2014, and shall continue thereafter for Extensions beginning each successive January 1, unless HECO or Chevron gives written notice of termination at least 120 Days
before the beginning of an Extension. 
  

	3.	Section 3.1 (“Purchase Volumes”) is hereby amended by replacing the phrase “2000-2004” in the table setting forth the “Annual Average Daily Rate in Physical
Barrels Per Day” in the first paragraph with the phrase “2000-2014/Extensions”; by replacing the phrase “2004” with the phrase “2014” in the penultimate sentence in Section 3.1; and by adding the following to the
second table in this section, “Annual Volume in Thousands Of Barrels,” as follows: 

  
 Annual Volume In Thousands Of Barrels 
  

					
	 Year

	  	Minimum

	  	Maximum

	 2005
	  	[___________________________]
	 2006
	  	[___________________________]
	 2007
	  	[___________________________]
	 2008
	  	[___________________________]
	 2009
	  	[___________________________]
	 2010
	  	[___________________________]
	 2011
	  	[___________________________]
	 2012
	  	[___________________________]
	 2013
	  	[___________________________]
	 2014
	  	[___________________________]
	 Extension non-leap year
	  	[___________________________]
	 Extension leap year
	  	[___________________________]

  

 3 

	4.	Article 4 (“Quality”) is hereby amended by adding to ASTM Test Method “D93” an alternative laboratory test method for LSFO Specification “Flash Point,”
“D6450”. 

  

	5.	Section 5.1 (“Price Per Physical Barrel”) is hereby updated by amending the definition of market price index factor [____] in price formula component [_________] to read
as follows: 

  
 [_______________________________________________________________________________________________________ ________________________________________________________________________________________________________
________________________________________________________________________________________________________ ________________________________________________________________________________________________________
________________________________________________________________________________________________________ ________________________________________________________________________________________________________
___________________________________________] 
  

	6.	Section 5.1 (“Price Per Physical Barrel”) is hereby updated by amending the definition of [____________________________] in price formula component
[——————-] to read as follows: 

  
 (c) There shall be added to the multiplication product of (a) and (b) above, a [_________________________________________
_______________________________________________________________________________________________________ _______________________] with respect to the additional premiums for full $ 1 billion coverage provided by P&I Clubs for Oil Pollution
Liability Insurance on vessels carrying persistent oils to and from the U.S.A., consistent with a typical vessel as derived in Addendum No. 3 attached to this Contract. 
  

	7.	Section 5.1 (“Price Per Physical Barrel”) if hereby updated by amending by replacing the phrase “2000-2004/Extension” with the phrase
“2000-2014/Extensions” for the years of the indicated period applicable for price formula components [___] and [___]; and by replacing the phrase “2004” with the phrase “2014” in the sentence following the table
following the definition for [___] 

  

	8.	Article 6 (“Indemnity”) is hereby amended by replacing it in its entirety to read as follows: 

  
 Section 6.1 HECO Indemnifies Chevron 
  
 HECO agrees to release, defend, indemnify and hold harmless Chevron, and its officers, directors, agents, employees and
invitees from and against all Site Remediation Costs (including, without limitation, all fines, penalties and Reasonable Costs of investigation) and all claims, losses, damages, expenses, costs and liability (including attorney’s fees and

  

 4 

 
costs of litigation), including without limitation for injuries to or deaths of persons or damage to property, but excluding consequential damages or
punitive damages (other than punitive damages actually paid by Chevron to a third party), arising or resulting from or related in any manner whatsoever to (i) the loss, release, discharge, spill or threat thereof, of any petroleum product for which
HECO has risk of loss occurring from any leak, rupture or other incident involving the Pipelines or BPTF, or (ii) any contaminated third party LSFO purchased by HECO or third party LSFO purchased by HECO which does not meet the specifications for
LSFO described in this Contract; except to the extent such claims, losses, damages, expenses, costs and liability, including without limitation for injuries to or deaths of persons or damage to property are caused by the gross negligence or willful
misconduct of respectively, Chevron, or its officers, directors, agents, employees and invitees. Chevron agrees to promptly notify HECO of any claim, loss, cost, damage, exposure or liability and to provide HECO reasonable information and assistance
related to any claim or action or the defense thereof. 
  
 Section 6.2 Chevron Indemnifies HECO 
  
 Except to the
extent provided in Section 6.1, Chevron agrees to release, defend indemnify and hold harmless, HECO and its officers, directors, agents, employees and invitees from and against all claims, losses, damages, expenses, costs and liability (including
attorneys fees and costs of litigation), including without limitation for injuries to or deaths of persons or damage to property (including LSFO, its components, Line Displacement Stock, risk of loss which is in HECO), but excluding
consequential damages or punitive damages (other than punitive damages actually paid by HECO to a third party), arising or resulting from or related in any manner whatsoever to: 
  

	 	(i)	any loss, release, discharge, spill, or threat thereof, of any petroleum product for which Chevron has risk of loss, occurring from any leak, or other incident except to the extent
such claims, losses, damages, expenses, costs and liability, including without limitation for injuries to or deaths of persons or damage to property (including LSFO, its components, Line Displacement Stock, risk of loss which is in HECO), are
caused by the gross negligence or willful misconduct of, respectively, HECO, or its officers, directors, agents, employees and invitees, 

  

	 	(ii)	any LSFO, its components, Line Displacement Stock, for which Chevron has the risk of loss, which does not meet specifications or is contaminated, except to the extent such off spec
or contaminated products, claims, losses, damages, expenses, costs and liability, including without limitation for injuries to or deaths of persons or damage to property (including LSFO, its components, Line Displacement Stock, risk of loss which is
in HECO), are caused by the gross negligence or willful misconduct of, respectively, HECO, or its officers, directors, agents, employees and invitees, or 

  

	 	(iii)	 any LSFO, its components, Line Displacement Stock, for which HECO has the risk of loss, which does not meet specifications or is contaminated, to the extent such
off spec or contaminated products, claims, losses, damages, expenses, costs and liability, including without limitation for injuries to or deaths of persons or damage to property (including LSFO, its components, Line Displacement Stock, risk of loss

  

 5 

	 	 
which is in HECO), are caused by the negligence or willful misconduct of, respectively, Chevron, or its officers, directors, agents, employees and invitees.

  
 HECO agrees to promptly notify Chevron of
any claim, loss, cost, damages, expense or liability and to provide Chevron reasonable information and assistance related to any claim or action of the defense thereof. 
  
 Section 6.3 Provision Survival 
  
 The provisions of this Article 6 shall survive the termination of this Contract to the extent that they apply to events, which occurred during the term of
this Contract. 
  

	9.	Section 7.1 (“LSFO Delivery”) is hereby amended by replacing it in its entirety to read as follows: 

  
 Pipeline Delivery of LSFO or Line Displacement Stock from Chevron’s
Hawaii Refinery shall be made by one of the following methods: 
  

	 	(a)	Chevron may Deliver LSFO or Line Displacement Stock by pipeline from the Refinery into HECO’s BPTF. Title and risk of loss of such LSFO and Line Displacement Stock shall pass
to HECO where Refinery pipelines interconnect with HECO’s BPTF pipelines at the point where the pipelines intersect the boundary line between the Refinery property and HECO’s BPTF property at either point A, depending on whether Chevron
Delivers LSFO or Line Displacement Stock through the “Front Door Line” or “Back Door Line” as shown in Addendum No. 4. 

  

	 	(b)	Pursuant to the Facilities and Operating Agreement between Chevron and HECO or to the terms and conditions of any agreement by and between Chevron and HECO which may become
effective subsequently thereto which provides for the contingent use of Chevron’s Black Oil Pipeline, Chevron may Deliver LSFO by pipeline from the Refinery into HECO’s receiving and storage tanks at Waiau and Iwilei. With respect to such
Deliveries to HECO’s receiving and storage tanks at Waiau and Iwilei, title and risk of loss of LSFO or Line Displacement Stock Delivered from the Refinery shall pass to HECO where the Refinery pipelines interconnect with Chevron’s Black
Oil Pipeline at either of two locations shown as point C in Addendum No. 4. Where or if there exists a direct connection between Chevron’s Refinery pipelines and HECO’s Kahe Pipeline, Delivery of LSFO or Line Displacement Stock from
Chevron’s Hawaii Refinery to HECO’s petroleum receiving and storage tanks at Kahe, title and risk of loss of LSFO or Line Displacement Stock Delivered from the Refinery shall pass to HECO where the Refinery pipelines interconnect with
HECO’s Kahe Pipeline at either of two locations shown as point B in Addendum No. 4. 

  

 6 

 The use of facilities for Delivery of LSFO or Line Displacement Stock pursuant to Section 7.1.(b) of this
Contract, including but not limited to HECO’s obligation to pay a per barrel pipeline pumping fee for the LSFO or Line Displacement Stock Delivered under Section 7.1 (b), if such shall be levied for the movement of LSFO or Line Displacement
Stock, the measurement of the pumped quantities and the terms of sale and Delivery by Chevron and purchase and receipt by HECO of Line Displacement Stock other than the specific provisions set forth in Article 9 herein, shall be governed by the
Facilities And Operating Contract or the terms and conditions of any agreement by and between Chevron and HECO which may become effective subsequently thereto which provides for the operation or use of the HECO Kahe Pipeline, HECO Waiau Fuel
Pipeline or Chevron’s Black Oil Pipeline.  
  

	10.	Section 7.2 (“Determination of Quantity”) is hereby amended by the addition of the following paragraph at the end, which shall read as follows: 

 
 The quality of Line Displacement Stock shall be determined on the basis
of samples drawn in such a manner as to be representative of each individual Delivery. Samples of Line Displacement Stock shall be drawn by Chevron or, if mutually agreed, by or under the supervision of an Independent Inspector the cost of which
shall be shared equally by Chevron and HECO. Such samples shall be divided into two parts: one part shall be used by Chevron to determine quality and BTU content, if so requested by HECO; and the other part shall be sealed and retained separately by
HECO. 
  

	11.	Section 7.3 (“Measurement of Quantity”) is hereby amended by amending the first paragraph to read as follows: 

  
 Quantities of LSFO and Line Displacement Stock shipped between the
facilities by pipeline including quantities of same Delivered by Pipeline Delivery hereunder shall be determined at the time of the Pipeline Delivery by gauging Chevron’s tanks before and after pumping under the supervision of the Independent
Inspector. Quantities of LSFO and Line Displacement Stock pumped, sold or Delivered by Chevron and purchased or received by HECO hereunder shall be calculated in accordance with the current measurement standards adopted by industry, ASTM, API and
other recognized standard-setting bodies as are applicable in the opinion of the Independent Inspector and shall be expressed in G.S.V., U.S. barrels @ 60 degrees F. 
  

	12.	Section 9.1 (“Line Displacement Stock”) is hereby amended in its entirety to read as follows: 

  
 HECO shall purchase and Chevron shall supply whatever volume of Line Displacement Stock is received into HECO’s LSFO
tankage at BPTF, Kahe, Waiau or Iwilei as may be reasonably required by HECO for the operation and maintenance of the HECO Kahe Pipeline and HECO Waiau Fuel Pipeline or as may be reasonably required for Chevron to 

  

 7 

 
complete the Deliveries of LSFO received into HECO’s tankage at Waiau and Iwilei via Chevron’s Black Oil Pipeline. The price of No. 2 diesel fuel
or No. 6 fuel oil used as Line Displacement Stock shall be the then-current pricing for the fuel comprising the Line Displacement Stock in that certain separate agreement between Chevron and HECO and its affiliated companies of even date herewith,
known as the Inter-Island Industrial Fuel Oil and Diesel Fuel Contract (“Inter-Island Supply Contract”), if such a supply contract is in effect; otherwise its price shall be the then-current Honolulu posted price for such fuel, less
normally available discounts, if any, at the time of purchase. The price of No. 5 fuel oil used as Line Displacement Stock shall be the [__________________________________________________________________________________________] in the Inter-Island
Supply Contract, if such a supply contract is in effect; otherwise its price shall be the then-current Honolulu posted price for No. 5 fuel oil, less normally available discounts, if any, at the time of purchase. HECO’s minimum purchase
obligation and Chevron’s maximum purchase obligation set forth in Article 3 shall be reduced by each physical barrel of Line Displacement Stock sold. 
  

	13.	Section 10.1 (“Invoices”) is hereby amended in its entirety by replacing it with the following: 

  
 Invoices, which will show the price per physical barrel of LSFO, blend stock
and Line Displacement Stock sold will be prepared and dated following Delivery. Invoices shall include full documentation, as approved by both parties including Certificate of Quality, report of the Independent Inspector, and price calculation; such
documentation may, however, be provided by Chevron to HECO separately. The invoices shall also show as a separate item the estimated amounts of any reimbursements to which Chevron is entitled pursuant to Section 5.3. 
  
 If an invoice incorporating an item other than a BTU content adjustment is
found to be in error or is otherwise disputed by HECO, then HECO shall pay the undisputed portion of such invoice when due and thereupon have the option to withhold payment of the disputed portion of said invoice without penalty until such error or
dispute is resolved and HECO shall have received a corrected invoice, debit or credit. HECO shall notify Chevron’s designated representatives as soon as any such error or item of dispute is discovered to expedite resolution and correction. HECO
shall make payment for such corrected invoice or debit in accordance with Section 10.3. 
  
 If Chevron’s or HECO’s final laboratory result for BTU content is unavailable or if Chevron’s laboratory result is disputed by HECO, Chevron may issue a provisional invoice pursuant to Section 7.2. HECO
shall in such case make payment for such provisional invoice in accordance with the provisions of Section 10.3. 
  
 Chevron will transmit an original of the invoice to HECO by first class mail to the address in Section 18.4 or as otherwise instructed. The invoice shall
also be sent to HECO by facsimile or electronic mail on the same day. 
  

 8 

	14.	Section 10.2 [________________________________] is hereby amended in its entirety by replacing it to read as follows: 

  
 [_____________________________________________________________________________________________________ ______________________________________________________________________________________________________
______________________________________________________________________________________________________ ______________________________________________________________________________________________________
______________________________________________________________________________________________________ 
 ______________________________________________________________________________________________________ ______________________________________________________________________________________________________
______________________________________________________________________________________________________ __________________________________________________________________________________________________] 
  

	15.	Section 10.3 (“Payments”) is hereby amended by replacing it in its entirety to read as follows: 

  
 Payments of Chevron’s invoices shall be made by HECO in U.S. dollars.
Subject to Section 10.1, Section 10.2, Section 7.4 and Section 8.6 herein, such payments shall be due within [________________] days from HECO’s first receipt of Chevron’s invoice and full documentation. Due dates are dates payments are to
be received by Chevron.  
  

	16.	Section 10.4 (“Method of Payment”) is hereby amended by replacing it in its entirety to read as follows: 

  
 Payments of Chevron’s invoices shall be tendered by HECO to Chevron by
means of an [_____________________________________________________________________________________________________ ______________________________________________________________________________________________________
______________________________________________________________________________________________________ ______________________________________________________________________________________________________
______________________________________________________________________________________________________ 
 ___________] HECO shall make
immediate payment in full to Chevron by Fedwire funds transfer of immediately available funds to: 
  
 Chevron U.S.A. Inc. 
 Account Number 59-51755 
 First National Bank of Chicago, Chicago, IL 
 ABA Ref. No. 071000013 
  
 for credit to the account of
the payee. Such Fedwire funds transfer shall reference the relevant customer account number from [____________________________________________________________________________________________] HECO shall by email or fax provide Chevron’s
designated representatives written documentation evidencing the specific invoices being paid. 
  

 9 

	17.	Article 10 (“Invoicing and Payment”) is hereby amended by adding a new Section 10.5 [——————-] which shall read as follows:

  
 [________________________] 
  
 [_______________________________________________________________________________________________________ ________________________________________________________________________________________________________
________________________________________________________________________________________________________ ________________________________________________________________________________________________________
________________________________________________________________________________________________________ ___________________________________________________________________________________________] 
  
 [_______________________________________________________________________________________________________ ________________________________________________________________________________________________________
________________________________________________________________________________________________________ ________________________________________________________________________________________________________ _____________] 
  
 [_______________________________________________________________________________________________________ ________________________________________________________________________________________________________
________________________________________________________________________________________________________ ________________________________________________________________________________________________________
________________________________________________________________________________________________________ ________________________________________________________________________________________________________
________________________________________________________________________________________________________ ________________________________________________________________________________________________________ 
 ________________________________________________________________________________________________________ 
 ________________________________________________________________________________________________________ 
 ________________________] 
  
 [_______________________________________________________________________________________________________
________________________________________________________________________________________________________ ________________________________________________________________________________________________________
________________________________________________________________________________________________________ ________________________________________________________________________________________________________
________________________________________________________________________________________________________ ________________________________________________________________________________________________________
________________________________________________________________________________________________________ ______________________________________________________________________________] 
  
 [_______________________________________________________________________________________________________ ________________________________________________________________________________________________________
________________________________________________________________________________________________________ ________________________________________________________________________________________________________ 
 ________________________________________________________________________________________________________ 
  

 10 

 ________________________________________________________________________________________________________ 
 ________________________________________] 
  

	18.	Article 11 (“Contingencies”) is hereby amended by adding a new Section 11.8 “Renegotiation,” which shall read as follows: 

  
 Section 11.8 Renegotiation 
  
 It is understood and agreed that both parties entered into this Contract in
reliance on [__________________________________] in existence or in effect on the Effective Date of this Contract and on the execution date of any subsequent amendments hereto, to the extent that they directly or indirectly affect the terms under
which LSFO is sold by Chevron or purchased by HECO hereunder. If at any time any [______________________________________________________________________________] come into existence and become effective after the Effective Date of this Contract and
after the execution date of any subsequent amendment hereto, and such [__________] significantly affects a party’s ability to continue to perform under this Contract or, [_________________________________________________] has a material and
adverse financial effect upon either party or upon a party’s ability to perform its obligations under this Contract, then the affected party, shall have the option to call for renegotiation of the price for LSFO sold to HECO, or renegotiation
of any other provision of this Contract the performance of which by the affected party would be affected. Such option shall be exercised by the affected party no later than one hundred eighty (180) days after such
[__________________________________] comes into existence and becomes effective, by giving written notice to the other party of the call to renegotiate. Within ten (10) days after the date of such notice, the parties shall enter into negotiations
and in the event that the parties do not agree upon a new price of LSFO or other provision satisfactory to both parties within forty (40) days after the date of such notice, the affected party shall have the right to terminate this Contract
effective thirty (30) Days after giving written notice of termination to the other party. Such notice of termination shall be given within thirty (30) days immediately following the forty (40) day negotiation period. Until a mutually satisfactory
new price of LSFO or other provision has been agreed upon, or until this Contract is terminated as provided herein, the price of LSFO or other provision that was in effect when the request for renegotiation was made shall continue in full force and
effect. 
  

	19.	Section 18.4 (“Notices”) is hereby updated by amending the address and other contact information of “Seller” or “Chevron” and “Buyer” or
“HECO” to read as follows: 

  
 Seller:

 Chevron Products Company, 
 A
Division of Chevron U.S.A. Inc 
 Attention: Manager, Hawaii Refinery 
 91-480 Malakole Street 
 Kapolei, Hawaii 96707

 Facsimile: (808) 682-2214 
  

 11 

 Buyer: 
 Hawaiian Electric Company, Inc. 
 Attention: Vice President Power Supply 
 P.O. Box 2750 
 Honolulu, HI 96840-0001 
 Facsimile: (808) 543-4366 
  

	20.	Addendum No. 1 (“Illustrative Schedule of Prices”) is hereby amended to clarify and update information and is replaced in its entirety by the Addendum No. 1 attached
hereto and incorporated herein by reference. 

  

	21.	Addendum No. 3 (“Recovery of Worldscale Fixed Differential For Oil Pollution Liability Insurance”) is hereby amended to update information and is replaced in its entirety
by the Addendum No. 3 attached hereto and incorporated herein by reference. 

  

	22.	Other than the amendments noted herein, the provisions of the Contract shall remain in full force and effect. 

  

 12 

 IN WITNESS WHEREOF, the parties hereto have executed this Amendment to the Contract as of the day and
year first written above. 
  
 ACCEPTED AND AGREED 
  
 “Chevron” 
  
 CHEVRON PRODUCTS COMPANY, 
  
 A DIVISION OF CHEVRON U.S.A. INC 
  

			
		
	BY:	 	/s/    MARTHA A. GILLES        
	 	 	

	 	 	Martha A. Gilles
	 	 	(Printed or Typed Name)
		
	 TITLE:
	 	Hawaii Refinery Manager

  

			
	 “Buyer”

	
	HAWAIIAN ELECTRIC COMPANY, INC.
		
	BY:	 	/s/    THOMAS C. SIMMONS        
	 	 	

	 	 	Thomas C. Simmons
	 	 	(Printed or Typed Name)
		
	 TITLE:
	 	Vice President, Power Supply

  

			
		
	BY:	 	/s/    RICHARD A. VON GNECHTEN        
	 	 	

	 	 	Richard A. von Gnechten
	 	 	(Printed or Typed Name)
		
	 TITLE:
	 	Financial Vice President

  

 13 

 ADDENDUM No. 1 
  
 ILLUSTRATIVE SCHEDULE OF PRICES 
 (Illustrative Product Price Calculation for September 2003) 
  
 For the Monthly cumulative volume which is at or below the [____] maximum limit of Section 3.1 multiplied by the number of Days in the Month, the price of LSFO Delivered to meet the Nominated commitment of a Month
shall be determined as follows: 
  
 [_________________________________________________________________________________________________________ 
 ____________________] 
  
 Where [___] is equal to the billing
price per physical barrel of LSFO Delivered to meet that portion of the Nominated commitment of a Month that is equal to or below the [__] maximum regardless of the actual Month Delivered, in U. S. dollars. 
  

	i.	[___________________] = A market index for low sulfur fuel oil, defined as the [_______________________________________ 

	________________],	defined as follows: 

  
 [_________________________________________________________________________________________________________ 
 __________________________________________________________________________________________________________ 
 __________________________________________________________________________________________________________ 
 __________________________________________________________________________________________________________ 
 __________________________________________________________________________________________________________ 
 __________________________________________________________________________________________________________ 
 __________________________________________________________________________________________________________] 
  
 [__________________________________________________________________________________________________________ 
 ____________________________________________________] 
  

 1 

 [_____________________________________________ 
 ______________________________________________ 
 _________________________________________________] 
  

							
	(Price in USD per barrel)
				
	 Date

	 	 Low

	 	 High

	 	 Average

	[_______________________________]
	[___________________________________________________]
	[___________________________________________________]
	[___________________________________________________]
	[___________________________________________________]
	[___________________________________________________]
	[___________________________________________________]
	[___________________________________________________]
	[___________________________________________________]
	[___________________________________________________]
	[___________________________________________________]
	[___________________________________________________]
	[___________________________________________________]
	[___________________________________________________]
	[___________________________________________________]
	[___________________________________________________]
	[___________________________________________________]
	[_______________________________]
	[_______________________________]
	[___________________________________________________]
	[___________________________________________________]
	[___________________________________________________]
	
	[____________________________________]

  

 2 

 [_____________________________________________ 
 ______________________________________________ 
 _________________________________________________] 
  

							
	(Price in USD per barrel)
				
	 Date

	 	 Low

	 	 High

	 	 Average

	[___________________________________________________]
	[___________________________________________________]
	[___________________________________________________]
	[___________________________________________________]
	[___________________________________________________]
	[___________________________________________________]
	[___________________________________________________]
	[___________________________________________________]
	[___________________________________________________]
	[___________________________________________________]
	[___________________________________________________]
	[___________________________________________________]
	[___________________________________________________]
	[___________________________________________________]
	[___________________________________________________]
	[___________________________________________________]
	[___________________________________________________]
	[___________________________________________________]
	[___________________________________________________]
	[___________________________________________________]
	[___________________________________________________]
	[___________________________________________________]
	[___________________________________________________]

  
 [_______________________________________] 
  
 [____________________]

  
 [___________________________________________________________________

 ____________________________________________________________________] 
  
 [_______________________________________________________________________________] 
  
 [___________________________________________________________________________________________________________ 
 ____________________________________________________________________________________________________________ 
 ____________________________________________________________________________________________________________ 
 ____________________________________________________________________________________________________________ 
 ____________________________________________________________________________________________________________ 
  

 3 

 ____________________________________________________________________________________________________________ 

_____________________________________________________________] 
  
 [______________________________] 
  
 [__________________________________________________________________________________________________ 
 _____________________________________________] 
  

	(a)	[____] ____ [___________________________________________________] for all [__________________________________ 

 ___________________________________________________________________________________________________________ 
 _____], during the period beginning the 21st of the second Month immediately preceding the Nominated Month of Delivery and ending the 20th Day of the Month immediately preceding the Nominated Month of Delivery.

  

							
	(Price in USD per barrel)
				
	 Date

	 	 Low

	 	 High

	 	 Average

	 [____________________________________________________]

	 [____________________________________________________]

	 [____________________________________________________]

	 [____________________________________________________]

	 [____________________________________________________]

	 [____________________________________________________]

	 [____________________________________________________]

	 [____________________________________________________]

	 [____________________________________________________]

	 [____________________________________________________]

	 [____________________________________________________]

	 [____________________________________________________]

	 [____________________________________________________]

	 [____________________________________________________]

	 [____________________________________________________]

	 [____________________________________________________]

	 [____________________________________________________]

	 [____________________________________________________]

	 [____________________________________________________]

	 [____________________________________________________]

	 [____________________________________________________]

	 [____________________________________________________]

	 [____________________________________________________]

  
 [________________]
Price            [________________] 
  

 4 

	(b)	[___] ___ Similarly, the [__________________________________________________________________________________ 

 ____________________________________________________] 
  

							
	(Price in USD per barrel)
				
	 Date

	 	 Low

	 	 High

	 	 Average

	[________________________]
	 [____________________________________________________]

	 [____________________________________________________]

	 [____________________________________________________]

	 [____________________________________________________]

	 [____________________________________________________]

	 [____________________________________________________]

	 [____________________________________________________]

	 [____________________________________________________]

	 [____________________________________________________]

	 [____________________________________________________]

	 [____________________________________________________]

	 [____________________________________________________]

	 [____________________________________________________]

	 [____________________________________________________]

	 [____________________________________________________]

	 [____________________________________________________]

	[________________________]
	[________________________]
	[________________________]
	 [____________________________________________________]

	 [____________________________________________________]

	 [____________________________________________________]

  
 [________________]
Price            [________________] 
  

 5 

	(c)	[____] ___ Similarly, the [_________________________________________________________________________________ 

	___________________________________________________________].	

  

							
	(Price in USD per barrel)
				
	 Date

	 	 Low

	 	 High

	 	 Average

	 [____________________________________________________]

	 [____________________________________________________]

	 [____________________________________________________]

	 [____________________________________________________]

	 [____________________________________________________]

	 [____________________________________________________]

	 [____________________________________________________]

	 [____________________________________________________]

	 [____________________________________________________]

	 [____________________________________________________]

	 [____________________________________________________]

	 [____________________________________________________]

	 [____________________________________________________]

	 [____________________________________________________]

	 [____________________________________________________]

	 [____________________________________________________]

	 [____________________________________________________]

	 [____________________________________________________]

	 [____________________________________________________]

	 [____________________________________________________]

	 [____________________________________________________]

	 [____________________________________________________]

	 [____________________________________________________]

  
 [________________]
Price            [________________] 
  

 6 

	(d)	[____] ____ Similarly, the [________________________________________________________________________________ 

	___________________]	for [_________________________________________________________________] 

  

			
	(Price in USD per barrel)
		
	 Date

	 	 Average

	 [_______________________________]

	 [_______________________________]

	 [_______________________________]

	 [_______________________________]

	 [_______________________________]

	 [_______________________________]

	 [_______________________________]

	 [_______________________________]

	 [_______________________________]

	 [_______________________________]

	 [_______________________________]

	 [_______________________________]

	 [_______________________________]

	 [_______________________________]

	 [_______________________________]

	 [_______________________________]

	 [_______________________________]

	 [_______________________________]

	 [_______________________________]

	 [_______________________________]

	 [_______________________________]

	 [_______________________________]

  
 [________________]
Price            [________________] 
  
 [___________________], 
  
 [_______________________________________________________________________ 
 ________________________________________________________________________

 ________________________________________________________________________ 
 ________________________________________________________________________] 
  
 [_____________________]
=                                       
 [_________________________] 
  

 7 

 [__________________________________________________________] 
  
 [__________________________________________________________] 
 [__________________________________________________________] 
 [__________________________________________________________] 
  
 [_____________________]
=                                       
 [_________________________] 
  

	ii.	[__________] = [_________________________________________________________________________________________ 

 ________________________________________________________________________________________________________ 
 ______________________] 
  

	(a)	The simple [_____________________________________________________________________________________________ 

 _____________________________________________] as published [_____________________________________________ 
 __________________________________] for the three Monthly publications in the calendar quarter immediately preceding the calendar quarter of the Nominated
Month of Delivery. [__________________________________________________________ 
 _______________________________________________________________________________________________________ 
 ________________________________________________________] 
  
 [_____________________________________________]         [____________________________________] 
  

			
	Publication Date	 	[___]
		
	April 2003	 	[___]
	May 2003	 	[___]
	June 2003	 	[___]
	 	 	______
	 [______]
	 	[___]

  

	(b)	[____________________________________________________________________________________________________] applicable to the Year of the quarter defined in (a) above; expressed in
[____________________________________________ 

 ______________________________________________________________________________________________________ 
 _______________________________________________] 
  
 [______________________________________________________________________________________________________ 
 ________________]

  
 = [____________________] 
  

	(c)	There shall be added to the multiplication product of (a) and (b) above, [___________________________________________ 

 _____________________________________], if and as provided by [___________] with respect to the Additional Insurance Premium for full $ 1 Billion coverage
of Oil Pollution Liability Insurance on vessels carrying persistent oils to and from the U.S.A., consistent with a typical vessel as derived in Addendum No. 3 attached to this Contract. 
  

 8 

 [_________________________________________] for Additional Insurance Premiums for Oil Pollution Liability
Insurance for SBT Tankers effective February 20, 2003 
  
 [____________] 
  
 The [___________________] will be expressed in
U.S. dollars per barrel, using a conversion factor of 6.75 barrels (“bbls”) per metric ton (“MT”). 
  
 [____________________________________________________________________________________] 
  
 [__________________________] 
  

	iii.	[________] = A market index for [___________________________________________________________________________ 

 _______________________________________________________________________________________________________ 
 _________________________________________] for all dates of publication during the period beginning the 21st of the second Month immediately preceding the
Nominated Month of Delivery and ending the 20th Day of the Month immediately preceding the Nominated Month of Delivery. 
  

							
	Price in USD per Metric Tonne
				
	 Date

	 	 Low

	 	 High

	 	 Average

	 [____________________________________________________]

	 [____________________________________________________]

	 [____________________________________________________]

	 [____________________________________________________]

	 [____________________________________________________]

	 [____________________________________________________]

	 [____________________________________________________]

	 [____________________________________________________]

	 [____________________________________________________]

	 [____________________________________________________]

	 [____________________________________________________]

	 [____________________________________________________]

	 [____________________________________________________]

	 [____________________________________________________]

	 [____________________________________________________]

	 [____________________________________________________]

	 [____________________________________________________]

	 [____________________________________________________]

	 [____________________________________________________]

	 [____________________________________________________]

	 [____________________________________________________]

	 [____________________________________________________]

	 [____________________________________________________]

  

 9 

 [______]                         [_______________________] 
  
 The [_______________________________] will be expressed in U.S. dollars per barrel, using a
conversion factor of 6.368 barrels per metric ton. 
  
 [______________________________________] 
  
 [______________________________________] 
  

							
	iv.	 	[__]	 	=	 	[_______________________________________________________________________________________________
	 	 	____________________________________________________________________________________________________
	 	 	______________________________________]
				
	 	 	 	 	 	 	[______________________________]
	
	[______________________________]
		
	v.	 	[__] = The actual BTU content of each LSFO Delivery, pursuant to Section 7.2, expressed in MM BTU’s per barrel and rounded to three decimal places.
			
	T	 	=	 	[_____________________] the Hawaii General Excise Tax, the Hawaii Environmental Response Tax, [_______________] and any other tax properly imposed on the sale of LSFO pursuant to
Section 5.3 herein.
			
	 	 	 	 	[______________________________________]
			
	 	 	 	 	[______________________________________]
			
	 	 	 	 	HGET = 4.166% of pre-HGET price
			
	 	 	 	 	Hawaii Environmental Response Tax applied after HGET [_____________________________] = $0.05 per barrel
	 	 	 	 	 	 	 

  

 10 

	A.	Product Price Computation for [____] Delivery with Standard BTU Content of [___] MM BTU Per Barrel 

  

							
	[__]	 	=	 	[_______________________________________________________________________________________________
	___________________]
		
	=	 	[_______________________________________________________________________________________________]
			
	 	 	=	 	[__________________________________________________]
			
	 	 	=	 	[___________________]
	
	non-Hawaii Tax component of T:
		
	 	 	[__________________________________________________]
		
	 	 	Pre-Hawaii Tax Price = [_______________________________]
		
	 	 	= [__________] per barrel, invoice billing rate per barrel
	
	Hawaii Taxes, the balance of T = sum of:
		
	 	 	 HGET = 4.166% of the pre-tax LSFO price [____________]
 = 0.04166 * [__________] = [__________]

		
	 	 	 [________________________________________________________________________________________________
 ___________________________________]

		
	 	 	Hawaii Environmental Response Tax = $0.05/bbl
		
	 	 	= [______________________]
			
	[__]	 	=	 	[________________________]
			
	 	 	=	 	[________________________] per barrel

  

 11 

	B.	Product Price Computation for [_____] Delivery with BTU Content Other than Standard [__] MM BTU per barrel 

  

							
	[__]	 	=	 	[_______________________________________________________________________________________________
	 	 	_____________________]
	
	If for purposes of illustration, BTU content of LSFO Delivery is [___] MM BTU per barrel [_____________________________
_________________________________
________________________________________, the computation is as follows:
			
	 	 	=	 	[_______________________________________________________________________________________________]
			
	 	 	=	 	[_______________________________________________]
			
	 	 	=	 	[___________________]
	
	non-Hawaii Tax component of T:
		
	 	 	[__________________________________________________]
		
	 	 	Pre-Hawaii Tax Price = [_______________________________]
		
	 	 	= [__________] per barrel, invoice billing rate per barrel
	
	Hawaii Taxes, the balance of T = sum of:
		
	 	 	 HGET = 4.166% of the pre-tax LSFO price [____________]
 = 0.04166 * [__________] = [__________]

		
	 	 	 [________________________________________________________________________________________________
 ___________________________________]

		
	 	 	Hawaii Environmental Response Tax = $0.05/bbl
		
	 	 	= [______________________]
			
	[__]	 	=	 	[________________________]
			
	 	 	=	 	[________________________] 

  

 12 

	C.	Product Price Computation for [            ] Delivery with Standard BTU Content of
[        ] MM BTU per barrel 

  

							
	[_________________________________________________________________________________________________________
__________________________________________________________________________________________________________
__________________________________________________________________________________________________________
___________________]
			
	[__]	 	=	 	[______________________________________________________________________________________________
	 	 	 	 	____________]	 	 
	
	[_________________________________________________________________________________________________________
_________________________________________________________________________________________________________
___________________]
			
	 	 	[__]	 	= [______________________________________________________________________________________________
	 	 	_____________________________________________________________________________________________________
		
	 	 	____________________________]
				
	 	 	 	 	[______________________________________]	 	 
			
	 	 	[_______________________________]	 	 
			
	[__]	 	=	 	[_______________________________________________________]
			
	 	 	=	 	[________________________________________] 
			
	 	 	=	 	[____________________]
	
	non-Hawaii Tax component of T:
			
	 	 	[_____________________________]	 	 
			
	 	 	Pre-Hawaii Tax Price = [___________________]	 	 
		
	 	 	= [_______] per barrel, invoice billing rate per barrel

  

 13 

 Hawaii Taxes, the balance of T = sum of: 
  

					
	 	  	 HGET = 4.166% of the pre-tax LSFO price [_______]
 =
0.04166 * [__________________] = [______________]
	  	 
			
	 	  	[________________________________________________	  	 
	 	  	____________________________]	  	 
			
	 	  	Hawaii Environmental Response Tax = $0.05/bbl	  	 
			
	 	  	= [_______]	  	 
			
	 [___]
	  	 = [____________]
  
 = [____________]
	  	 

  

	D.	Product Price Computation for [____] Delivery with BTU Content Other than Standard [__] MM BTU per barrel 

  

					
	 [___________________________________________________________________________________________________

	 _____________________________________________________________________________________________________

	 _____________________________________________________________________________________________________

	 ________________________]

		
	 [__]
	  	 = [___________________________________________________________________________________________________
     ________________]

	
	 [________________________________________________________________________________________________________
 _________________________________________________________________________________________________________
 ___________________________________]

		
	 	  	 [___] = [______________________________________________________________________________________________
 ____________________________________________________________________________________________________
 ____________________________]

			
	 	  	 [_________________________]
	  	 
		
	 	  	[_________________]

  

 14 

 If for purposes of illustration, BTU content of LSFO Delivery is [__] MM BTU per barrel
[______________________________ ___________________________________________________________] the computation is as follows: 
  

							
	[__]	 	=	 	[_______________________________________________________________________________________________
	 	 	 	 	______]
			
	 	 	=	 	[__________________________________________________]
			
	 	 	=	 	[___________________]
	
	non-Hawaii Tax component of T:
		
	 	 	[__________________________________________________]
		
	 	 	Pre-Hawaii Tax Price = [_______________________________]
		
	 	 	= [__________] per barrel, invoice billing rate per barrel
	
	Hawaii Taxes, the balance of T = sum of:
		
	 	 	 HGET = 4.166% of the pre-tax LSFO price [____________]
 = 0.04166 * [__________] = [__________]

		
	 	 	 [_____________________________________________
 ___________________________________]

		
	 	 	Hawaii Environmental Response Tax = $0.05/bbl
		
	 	 	= [______________________]
			
	[__]	 	=	 	[________________________]
			
	 	 	=	 	[________________________] 

  
 Note on items as they appear on invoices 
  
 Actual invoices for
sales and Deliveries of LSFO may include additional charges for pipeline throughput and pipeline displacement stock incurred under the Facilities and Operating Contract by and between the same parties and for which certain taxes, such as the HGET
[________________________________] are consolidated with the corresponding tax charged on the sale of LSFO. 
  

 15 

 Actual invoices for sales and Deliveries of LSFO may also contain comments, which reference the measured BTU content of
the invoiced Delivery, calculated LSFO price per unit before [___________________________] and per unit amount of pipeline throughput charge, if any. 
  

 16 

 ADDENDUM NO. 3 
 Recovery of [_____________________________] For Oil Pollution Liability Insurance 
  
 The price formula for LSFO in Section 5.1 of the Contract includes the component [________] that refers to a [_______________ 
  

	
	 ________________________________________________________________________________________________________

	 ________________________________________________________________________________________________________

 _________________________________________] which incorporates a [__________________] to reflect the cost of
additional premium for full $ 1 Billion coverage for Oil Pollution Liability Insurance on vessels carrying “Persistent Oils” (a cargo category which would include any grade of fuel oil, most fuel oil blending components as well as most
types of crude oil) applicable to voyages having a destination in the U.S.A. Chevron acknowledges that any vessel used to transport LSFO that is sold and purchased under the Contract, including its components and the crude oil from which the LSFO is
derived, shall be required to possess oil pollution liability insurance coverage in the maximum amount commercially available, $ 1 Billion as of the execution of this Contract. 
  
 The price formula component [_________] refers to an [____] rate applicable to [_________________________________________
_________________________________________________________________________________________________________ 
 ________________________________________________________________________________________________________ 
 ________________________________________]
In order to derive an approximation of the relationship between Deadweight and Gross Registered Tons (“GT”), the design characteristic of tankers against which marine insurance, including oil pollution liability insurance, is levied, for a
nominal vessel consistent with the mathematical average of this vessel size classification, [________________________________________________________________________________________________________
_________________________________________________________________________] These vessels are described as follows: 
  

							
	 Name

	  	Deadweight
Tons
(DWT)

	 	 	Gross
Registered
Tons (GT)

	 
	 [__________________________________]
	  	[______	]	 	[______	]
	 [__________________________________]
	  	[______	]	 	[______	]
	 [___________________]
	  	[______	]	 	[______	]

  
 The
[—————————] that is to be included in the computation of [___________] is to be derived in the same manner as the following illustrative example calculations: 
  
 1. The [_________________________] in effect from February 20, 2003 (see note #1 at end),
shall include a [__________________] for SBT (Segregated Ballast Tank equipped) Tankers, which shall be computed as follows: 
  

 1 

 [_________________________] with respect to the additional insurance premiums for oil pollution liability
insurance coverage in the maximum amount commercially available, $ 1 billion as of the execution of this Contract, on vessels carrying persistent oils to and from the U.S.A is defined as follows: 
  

			
	 [________________________________________________________________]

	 [___________]

	
	 = [_____________________]

  
 For illustrative
purposes, this rate may be expressed in U.S. dollars per barrel as follows: 

			
	 =
                           [___________]

	                     [______________]

	
	 =     [_____________________]

  
 2. The
[__________________________________________________] applicable for each [__________________] are based upon an
[—————————————————————————————] in the calendar quarter immediately preceding the calendar quarter of
the Nominated Month of Delivery. Therefore the relevant [____________________________] computed above should be applied (to a Year of 365 Days) as follows: 
  

	 	A.	With respect to volumes of LSFO [_____________________________________________] following a change in the published rate (typically February 20 of each Year); the relevant
[_____________________________] to be included in the computation of the price component [__________] shall be the sum of: 

  
 50/90 multiplied by the [______________] computed prior to the rate change: 
  
 and 40/90 multiplied by the [_________________] computed using the revised rate: 
  

	 	B.	With respect to volumes of LSFO [_____________________] and continuing for so long as the [___________________] as set forth in [____________________________________] shall be
applicable, the relevant [_________________________] to be included in the computation of the price component [__________________] shall be as derived in part 1 above. 

  

 2 

	Note (1):	[________________________] are revised and applicable for each calendar year, however the value of the [____________________] that pertains to the cost of oil pollution liability
insurance is revised in accordance with the Protection & Indemnity Club (mutual marine insurance organizations) premium year, generally February 20 through February 19 of the following year. Reference [________________________] for the
[___________________________] in effect from February 20, 2003 onwards and applicable to the determination of the September 2003 LSFO price. 

  

 3

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