THE RUBBER TRADE ASSOCIATION OF EUROPE

RTAE CONTRACT No. 2

F.O.B.

Adopted for use by the Rubber Trade Association of London on and after 1st October 1965.

Adopted for use by the Association of the International Rubber Trade on and after 1st January 1992.

Adopted for use by the Rubber Trade Association of Europe on and after 1st May 2002.

Adopted Fully Revised for use by the Rubber Trade Association of Europe on and after 1st January 2013.

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 RTAE Contract No. 2 F.O.B.

INDEX TO THE PRINCIPAL CONDITIONS OF THE RTAE CONTRACT No. 2: F.O.B.

Pages

Arbitration 10

Brokerage/Commission 9

Claims: General 3-4

Claims: All Destinations 4-5

Claims: Factory Sampling 5-7

Declaration of Shipment 8-9

Freight 8

Frustration of Contract 9 - 10

General 2

Insurance 7

Packing 3

Payment 9

Prohibition 9

Quality 3

Quantity 2

Shipment 7-8

Weighing 2-3

INDEX TO THE SUPPLEMENTARY CONDITIONS OF THE RTAE CONTRACT No. 2: F.O.B.

Declaration of Documents 12

Declaration of Shipment 11 - 12

Documents for Payment 12

General 13

Inspection of Documents 12 - 13

Insurance 11

Non-Business Days 11

Notices 11

Payment 13

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THE RUBBER TRADE ASSOCIATION OF EUROPE

RTAE CONTRACT No. 2: F.O.B.

Name of Company:

Date: Contract No.:

We have this day SOLD upon the Terms of this Contract, TO : ……………………………............................,
BOUGHT FROM
including the Principal and Supplementary Conditions hereinafter contained and the Articles and
Regulations of the Rubber Trade Association of Europe, the following Natural Rubber, Hevea Brasiliensis,
viz.:

Quantity:

Quality:

Packing:

From (Port):

Destination:

Price per unit of weight:

Freight: For Buyer’s Account - prepaid or payable at destination.

Shipment Period/Vessel:

Broker: Brokerage:

Payment:

Arbitration: London

Special Terms and Remarks:

Subject to the Principal and Supplementary Conditions of the Rubber Trade Association of
Europe (RTAE) Contract No. 2 F.O.B.

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PRINCIPAL CONDITIONS

1. General:

1.1 When rubber is sold for monthly shipment or for a specified part of a month’s shipment, each month’s
or specified part of a month’s shipment is to be treated as a separate contract.

1.2 Each Bill of Lading shall be treated as a separate contract in respect of conventional/break bulk or part
container load shipments.

1.3 For shipment in full container loads, each container load shall be treated as a separate contract.

1.4 Any slight variations in marks (other than quality marks), numbers or ship’s name, shall not vitiate
this contract.

1.5 Unless the context otherwise requires, words signifying the singular number only shall include the
plural number, and words signifying the plural number only shall include the singular number, and
words signifying persons shall include firms and corporations.

2. Quantity:

2.1 Contracts shall be for specified quantities only.

2.2 Shipment quantities shall be as agreed by Buyer and Seller in the contract.

2.3 Disputes arising over variances between specified quantities and quantities actually shipped shall be
settled between Buyer and Seller, or, failing such agreement, subject to arbitration.

2.4 The word ‘ton’ shall mean a metric ton of one thousand (1,000) kilogrammes. If the contract weight is
expressed in avoirdupois, two point two zero four six (2.2046) lbs shall equal one (1) kilogramme.

2.5 When the word ‘about’ is used to qualify quantities contracted, no excess or deficiency between
contracted and shipped weights shall be greater than one half (½) per cent of the contract quantity or
for any monthly portion of a contract.

2.6 An excess or deficiency between contracted and shipped weights up to and including one (1) per cent
shall not be a ground for claiming default.

2.7 Where the excess or deficiency is more than one half (½) per cent of the contract quantity or any
monthly portion of a contract, the excess or deficiency shall be invoiced or invoiced back as the case
may be, at the price fixed by the appropriate Sub-Committee of the Rubber Trade Association of
Europe.

2.8 No buyer shall be compelled to accept a tender showing an excess or deficiency, compared with the
contract quantity or any monthly portion of a contract quantity, greater than one (1) per cent, unless
the tender is only part fulfilment of the contract quantity or any monthly portion of a contract quantity
and this fact is made clear to buyers at the time of tender.

2.9 No accounts shall be rendered for less than ten (10) pounds sterling or its equivalent (excluding
brokerage).

3. Weighing:

3.1 Buyer shall weigh the rubber at port of destination or, provided Buyer and Seller so agreed at the time
of entering into the contract, in Buyers factory.

3.2 If any loss in weight during transit, excluding theft and pilferage:

(a) exceed one (1) per cent for all lower grades as defined by the Rubber Trade Association of
Europe (and corresponding types), all the loss in weight shall be for the Seller’s account and be

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invoiced back at contract price plus the proportionate cost of freight and insurance; or exceed
one-half (0.50) per cent but not more than one (1) per cent, then the excess loss over one-half
(0.50) per cent only shall be for Seller’s account and be invoiced back at contract price plus the
proportionate cost of freight and insurance;

(b) exceed one-half (0.50) per cent for all other grades, all the loss in weight shall be for Seller’s
account and be invoiced back at the contract price plus the proportionate cost of freight and
insurance.

3.3 Buyer claiming for loss in weight shall furnish at his expense to the last Member Buyer a copy of
landed or factory weights certified by an accredited marine cargo surveyor, or similar authority, as
customarily taken at destination called for in this contract (weights of samples to be included).

3.4 This copy shall be supplied within forty-two (42) calendar days (or sixty-three (63) calendar days for
ports outside Europe) from the date of discharge at the destination port named in the contract.

3.5 All weights shall be taken one hundred (100) per cent.

3.6 When rubber is packed in fully wrapped bales or metal strapped bales, at least ten (10) per cent to be
tared.

3.7 If the average variation is two hundred (200) grammes or greater on bales packed as described above
between the tares of the bales opened and the shipping tares of such bales, then the whole parcel must
be worked and payment shall be made on the weights so ascertained.

3.8 If a claim for loss in weight is substantiated, the expenses of additional taring shall be paid by the
Seller.

3.9 It is the responsibility of the last Member Buyer to inform the first Member Seller, within the time
limits stated above for the supplying of landing weights, that a claim for loss in weight has been
lodged.

4. Quality:

4.1 Quality to be as specified in the contract.

4.2 Rubber sold by reference to International Grade descriptions shall conform to descriptions contained
in the publication entitled ‘International Standards of Quality and Packing for Natural Rubber Grades’
in the edition endorsed by the Rubber Trade Association of Europe at the time of contract; the
provisions of which shall form part of this contract and, where in conflict with other provisions hereof,
shall prevail.

5. Packing:

5.1 Unless otherwise specified, to be packed in accordance with the specifications contained in the
publication entitled ‘International Standards of Quality and Packing for Natural Rubber Grades’ in the
edition endorsed by the Rubber Trade Association of Europe at the time of shipment, the provisions of
which shall form part of the contract and, when in conflict with other provisions, shall prevail unless
otherwise agreed.

5.2 Where the bale coating material exceeds four hundred and fifty (450) grammes per bale of zero point
one four one five (0.1415) cubic metres or an equivalent weight in proportion to the surface area of
smaller bales, Buyer shall be entitled to claim for an allowance with the option of rejection.

6. Claims: General:

6.1 If the rubber is found inferior in respect of packing or quality and, failing amicable settlement, Buyer
shall accept it with a fair allowance to be decided by arbitration, provided arbitrators are of the opinion
that the rubber as shipped was a bona fide fulfilment of the contract.

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6.2 If arbitrators decide to the contrary, they shall fix an allowance and Buyer, if he has so claimed, shall
have the option, to be exercised within five (5) business days from the issue of the arbitration award of
rejecting the rubber and claiming default or accepting it with the allowance and the arbitrators shall so
award.

6.3 In the case of rejection, other than in respect of factory sampling, the rubber shall be invoiced back on
the sixth (6th) business day following the date of issue of the original arbitration award but if there is
an appeal then the rubber shall be invoiced back on the sixth (6th) business day following the date of
issue of the appeal award.

6.4 In either case invoicing back will be in accordance with Principal Condition 15 (arbitration) of this
contract.

6.5 This period may be extended in case of need at the discretion of arbitrators.

6.6 Documents of title and samples must be available to the Seller at the time of invoicing back.

6.7 The cost of sampling shall be for Seller’s account whenever a claim is sustained except in the case
where the sampling charges equal or exceed the amount of the award and the rubber is deemed to be
not more than a quarter of a grade lower than the grade contracted for, when arbitrators shall have the
discretion to award such charges against either party.

6.8 The cost of despatching samples to London shall be allocated at the discretion of the arbitrators.

6.9 If a claim in respect of packing, quality or loss in weight still remains in dispute at the end of a period
of one hundred and five (105) calendar days from the date of final discharge of the vessel at
destination, it shall be the responsibility of last Member Buyer to submit it to arbitration for
settlement.

6.10 Failure to take this step within fourteen (14) calendar days of the expiry of this period shall render the
claim null and void, except in cases which have been subject to an insurance claim when the period
may be extended by agreement between the parties or at the discretion of arbitrators.

6.11 Nothing contained in the preceding paragraph shall deprive either party of their right to submit the
claim to arbitration at any time before the period stated therein has elapsed.

6. Claims: All Destinations:

6.12 In the event of a claim on the ground of quality of the rubber or of damage due to inferior quality or
defective packing, sample or samples in support of the claim must be produced by last Member Buyer
to first Member Seller within forty-two (42) calendar days (or sixty-three (63) calendar days for ports
outside Europe) from the date of discharge on to quay or into warehouse or final release from Customs
according to the custom of the port named in the contract.

6.13 This period may be extended by agreement between the parties or at the discretion of the arbitrators if
the delay is due to circumstances over which the Buyer has no control.

6.14 Final notice in writing of the claim, stating the grounds of complaint, must be given by last Member
Buyer to first Member Seller within five (5) business days of the expiry of the period stipulated above
for the production of the sample or samples.

6.15 Any claim lodged prior to the production of sample or samples will, if not so finalised, become null and
void.

6.16 Sample or samples shall be drawn on quay or in warehouse at destination called for in this contract
(and forwarded to last Member Buyer at Buyer’s expense) from ten (10) per cent of the bulk, labels
shall be attached, stating number and numbers of the packages opened, such labels shall be signed and
sealed by representatives of Buyer and Seller.

6.17 If, when sampling ten (10) per cent, any bales show signs of damage, the whole parcel shall be
forthwith surveyed, and separate ten (10) per cent samples of the sound and damaged rubber shall be
drawn for arbitration purposes.

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6.18 If the Seller does not name his representative in sufficient time, the labels of the samples shall be
signed and sealed by Buyer in conjunction with an independent sampler recognised at the port of
destination and shall be accepted by the Seller.

6.19 All charges incurred in connection with sampling, including cost of supervision on Seller’s behalf, shall
be paid by Buyer and in the event of a claim for quality such charges may be submitted with the claim
to the arbitrators.

6.20 Where there are sub-marks first Member Seller shall be entitled by giving notice on the final
declaration form, to call for separate sampling, provided such sampling is possible, of each sub-mark.

6.21 Additional expense in sampling, if any, to be for account of first Member Seller.

6.22 Where the rubber is shipped bareback, one representative piece of the wrapper shall be drawn and
submitted in a polythene envelope, which shall be attached in a manner whereby it becomes an
integral part of the sample and shall be sealed under one label.

6.23 If Buyers wish to claim due to wrappers being of lower grade than that contracted for (and/or are
mouldy on their interior surface) a separate sample of the wrappers shall be drawn, signed and sealed
as above and marked ‘W.S.’

6.24 If the exterior of the bales appear to be covered excessively with bale coating solution (talc) an average
sample of the wrapper sheets (minimum size fifteen (15) centimetres square) will be drawn from ten
(10) per cent of the bales and taken equally from the top, bottom and sides of the bales to give a fair
representation of the amount of bale coating solution (talc) on the bales.

6.25 It is only necessary for a representative selection of these pieces to be shown in the sample.

6.26 In the event of a claim for excess bale coating (talc) the wrapper sample shall, failing amicable
settlement, be submitted for assessment of the average weight of coating solution (talc) per bale to an
analyst approved by the Rubber Trade Association of Europe.

6. Claims: Factory Sampling:

6.27 In event of a claim on the grounds of quality of the rubber or of damage due to inferior quality or
defective packing, where factory sampling has been specifically agreed to in this contract, sample or
samples in support of the claim must be produced by last Member Buyer to the first Member Seller or
his Selling Broker within forty-two (42) calendar days (or sixty-three (63) calendar days for ports
outside Europe) of the date of discharge at the port of destination named in the contract.

6.28 This period may be extended by agreement between the parties or at the discretion of the arbitrators, if
the delay is due to circumstances over which the factory Buyer has no control.

6.29 The cost of sampling, supervision and all reasonable expenses and charges of Seller’s representative,
shall be paid by the Seller if a claim is sustained.

6.30 If it is not sustained they shall be borne by the factory Buyer.

6.31 Final notice in writing of the claim, stating the grounds of the complaint must be given by last Member
Buyer to the first Member Seller or his Selling Broker within five (5) business days of the expiry of the
period stipulated above for the production of sample or samples.

6.32 Any claim lodged prior to the production of sample or samples will, if not so finalised, become null and
void.

6.33 A sample or samples in support of a claim shall be drawn in factory (and forwarded to last Member
Buyer at Buyer’s expense) from ten (10) per cent of the bulk by an independent sampler recognised in
the country of final destination, unless last Member Buyer and First Seller (Shipper) agree on an
alternative representative.

6.34 If, when sampling ten (10) per cent of the bales, any bales show signs of damage, the whole parcel shall
be forthwith surveyed, and separate ten (10) per cent samples of the sound and damaged rubber shall
be drawn for claims purposes.

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6.35 Seller should be entitled at his own expense to nominate a representative to be present when samples
are drawn, provided such representative is nominated prior to discharge of the rubber at port of
destination.

6.36 The sample labels shall be marked ‘Drawn in Factory at …………’, shall state the number and numbers
of the packages opened and shall be signed and sealed by the parties appointed in accordance with this
paragraph.

6.37 If Seller does not nominate his representative in time, the labels shall be signed and sealed by both the
independent sampler and Buyer at the same time.

6.38 If the factory Buyer remove the goods, or part of the goods, from factory without notifying Seller of a
claim, factory Buyer shall forfeit the right to claim in respect of quality or condition.

6.39 Where there are sub-marks first Member Seller shall be entitled, by giving notice on the final
declaration form to call for separate sampling, provided such sampling is possible, of each sub-mark.

6.40 Additional expense of such sampling, if any, to be for the account of first Member Seller.

6.41 When the Rubber is shipped bareback, one representative piece of the wrapper shall be drawn and
submitted in a polythene envelope, which shall be attached in a manner whereby it becomes an
integral part of the sample and shall be sealed under one label.

6.42 If Buyers wish to claim due to wrappers being of lower grade than that contracted for (and/or are
mouldy on their interior surface) a separate sample of the wrappers shall be drawn, signed and sealed
as above and marked ‘W.S.’

6.43 If the exterior of the bales appear to be covered excessively with bale coating solution (talc) an average
sample of the wrapper sheets (minimum size fifteen (15) centimetres square) will be drawn from ten
(10) per cent of the bales and taken from the top, bottom and sides of the bales to give a fair
representation of the amount of bale coating solution (talc) on the bales.

6.44 It is only necessary for a representative selection of these pieces to be shown in the sample.

6.45 In the event of a claim for excess bale coating (talc) the wrapper sample shall, failing amicable
settlement, be submitted for assessment of the average weight of coating solution (talc) per bale to an
analyst approved by the Rubber Trade Association of Europe.

6.46 Factory in this contract shall include premises used for storage occupied by the proprietor of the
factory for the purposes of the factory whether or not the same shall be in the curtilage of the factory.

6.47 In the event of a claim Sellers agree to accept such factory samples and, failing an amicable settlement,
to allow such factory samples to be submitted to arbitrators.

6.48 Sellers further agree that the destination for the purpose of inspecting the goods shall be deemed to be
the factory or factories instead of the ports named in the contract, provided always that the cost of
transport and insurance from vessel to factory shall be for Buyer’s account.

6.49 While in the factory, the goods shall be at factory Buyer’s risk.

6.50 In the event of rejection the last Member Buyer shall notify the factory Buyer within six (6) business
days of the receipt of the award of the instructions of the first Member Seller, the name of the
warehouse to which the rubber is to be returned together with any instructions regarding sampling,
weighing and insurance.

6.51 The factory Buyer shall carry out such instructions without undue delay and also insure the goods in
transit.

6.52 Factory Buyer shall, through his Seller, be entitled to debit First Member Seller with the cost of
returning the goods to warehouse, including insurance in transit.

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6.53 The cost of receiving the rubber into warehouse and of working and sampling shall be for first Member
Seller’s account.

6.54 Last Member Buyer shall notify the first Member Seller as soon as warrants and samples are available,
and the rubber shall be invoiced back within seven (7) calendar days.

6.55 Where goods are delivered to a factory or factories without passing through a recognised warehouse, or
when part of the goods is delivered to warehouse and the remainder is delivered to a factory or
factories without passing through a recognised warehouse neither the onward movement of the goods
from the port nor the breaking of bulk by distribution of one contract quantity between two or more
factories shall be deemed an acceptance by the last Member Buyer so as to cause the last Member
Buyer to lose thereby his right of claim or rejection.

7. Insurance:

7.1 Seller must insure the rubber to ‘on board’ vessel at first port of shipment as stated in the contract.

7.2 Thereafter all risks are for Buyer’s account.

7.3 If Buyer specifically so requests, Seller shall insure marine, war, strikes, riots and civil commotion
risks for Buyer’s account, in accordance with the terms agreed between Buyer and Seller at any time
prior to the shipment.

8. Shipment:

8.1 To be delivered Free on Board at ……………… by vessel or vessels loading or commencing to load in port
of shipment (and loading continuously therein till date of shipment) during the month or months of
………………., from ……………… (port/ports) to ……………… direct, and/or indirect, with liberty to call
and/or transship at other ports and/or via coast ports and thence by rail.

8.2 The rubber must be shipped by a vessel scheduled to sail to the continent of destination or in the case
of transshipment must be on a through Bill of Lading; otherwise the Bill of Lading must be endorsed
by, or a certificate obtained from the shipping company that the transshipment has been effected and
that the rubber is actually on board a vessel scheduled to sail as above.

8.3 Bill of Lading date shall be proof of time of shipment in the absence of conclusive evidence to the
contrary.

8.4 ‘On Board’ date to be taken as Bill of Lading date for container shipments.

8.5 A Bill of Lading dated in the month immediately following the contractual month(s) shall be a good
tender provided that it contains the following warranty endorsed on the Bill of Lading and signed by
the shipping company or on its behalf by its authorised agent:
Warranted that the vessel commenced loading in the port of shipment in ……………………(month)
and has been continuously loading therein until date of shipment which is the date of this Bill of
Lading.

8.6 A Bill of Lading in the month immediately preceding the contract month(s) shall be a good tender
provided that it contains the following warranty endorsed and signed as above:
Warranted that the vessel has been continuously loading in the port of shipment since the date
of this Bill of Lading and that the date of its final departure from that port was …………………… .
(This date must be within the contract month(s)).

8.7 Such warranty shall, as between Buyer and Seller and in the absence of fraud, be conclusive evidence
of the facts so stated.

8.8 If under the terms of his contract with Seller, the Buyer has the obligation to declare a port or ports of
destination, Buyer shall declare to Seller on or before the date specified for such declaration in his
contract with Seller, the port or ports to which he requires shipment.

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8.9 At the same time as he nominates the port or ports of destination he may request Seller to obtain
freight space.

8.10 If Buyer fails to declare a port or ports by the date stipulated in the contract, then shipment shall be
abandoned without Buyer’s consent with Seller leaving rubber at origin and claiming default.

8.11 When freight space is to be booked by the Buyer, he shall secure the necessary tonnage
accommodation and advise Seller at least ten (10) calendar days prior to the scheduled arrival of the
vessel at the port of loading of the name and loading dates of the vessel.

8.12 If Seller request alternative vessel loading within the contractual period, Buyer’s consent shall not be
unreasonably withheld.

8.13 If Buyer be unable to obtain space on any vessel loading for a declared destination during the
contractual period, he shall promptly nominate a vessel loading to an alternative destination during
the contractual period of shipment or request Seller to extend the period of shipment to the end of the
month following the contractual period.

8.14 If Buyer be unable to obtain the necessary tonnage accommodation during the extended period Seller
may ship rubber to Felixstowe, Rotterdam or Hamburg, or such other port as may be agreed upon
between the Seller and Buyer.

8.15 If Seller be requested to obtain freight space, he shall engage the necessary tonnage accommodation on
behalf of Buyer, but in the event of it being impossible to obtain the necessary tonnage to the port(s)
within five (5) calendar days of Buyer’s request, the Seller shall so inform Buyer by receipt-
acknowledged e-mail or telefax, and Buyer shall either provide the necessary freight space or shall
promptly declare another destination; or alternatively Seller shall extend at Buyer’s request the period
of shipment to the end of the month following the contractual period.

8.16 If Seller be unable to obtain the necessary tonnage accommodation during the extended period, Seller
may ship the rubber to Felixstowe, Rotterdam or Hamburg, or such other port as may be agreed upon
between Seller and Buyer.

8.17 If at Buyer’s request the period of shipment is extended as permitted in the contract, Buyer must pay
interest, storage charges, additional duty where applicable, and all other costs incurred by reason of
the delay, calculated from the first day following the end of the contractual period until the date of
actual shipment.

8.18 In the case of shipment to the USA or with USA option, containers must be marked with the country of
origin of the contents in the manner required by the USA Customs Authorities at the time of shipment
and such marking must be shown on the Bill of Lading.

8.19 In the event of a shipping company ‘shutting-out’ the cargo through no fault of the Seller, all
responsibility as defined above reverts to the Buyer.

9. Freight:

9.1 If freight is prepaid, Buyer shall refund such freight to Seller.

9.2 Seller shall be entitled to claim reasonable interest.

10. Declaration:

10.1 Seller shall give Buyer a Declaration of Shipment which must be issued by the Seller or his authorised
representative and must state the contract reference, leading marks, number of packages, weight,
name of vessel and Bill of Lading date. In the case of shipments made in containers, the Declaration of
Shipment must state the container numbers and the name of the shipping company upon whose Bill of
Lading the rubber has been shipped.

10.2 The Declaration of Shipment must be issued by receipt-acknowledged telefax or e-mail or by hand-
delivery to ensure receipt within nine (9) calendar days of the date of the Bill of Lading or the date of

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first transshipment into ocean-going vessel as marked on the through Bill of Lading (subject to the
provisions of Principal Condition 10.3 below).

10.3 Failure by the Seller to issue the Declaration of Shipment within the period specified in 10.2 shall
entitle the Buyer to claim for such damages as he shall prove to have sustained.

10.4 In no case shall a Declaration of Shipment be issued by the Seller or his authorised representative later
than the twenty-first (21st) calendar day following the last day of the period of shipment. Failure to
issue the Declaration of Shipment within this period shall constitute a default.

10.5 Without the consent of the Buyer, a Declaration of Shipment, which on the face of it complies with the
contract, shall not be withdrawn or altered except in the case of a bona fide error, of which the Seller
must furnish adequate proof.

10.6 Seller shall also comply with Supplementary Conditions Nos. 2, 3, 4 and 5.

11. Brokerage:

11.1 In the case of Member Brokers’ Contracts only, Brokerage or Commission of ………… per cent, ship lost
or not lost without regard to the performance of this contract shall be paid by Member Buyer and
Member Seller and for which receipt shall be issued:

Name of Brokers:
Members of the Rubber Trade Association of Europe

Received from: ……………… (Sellers/Buyers)

Sale Contract dated ………… for ………… quantity of natural rubber

Purchase

for shipment @ ………… price per unit of weight F.O.B. which we hereby confirm.

Date: ………………

12. Payment:

12.1 Payment shall be made in full free from all bank or other transmission charges in ............ to the Seller’s
bank, against delivery of Shipping Documents, in accordance with Supplementary Conditions Nos. 7
and 8.

13. Prohibition:

13.1 In the event of shipment to a port declared under this contract being impossible by reason of
Prohibition or otherwise, such portions as are affected to be shipped by agreement between Buyer and
Seller to such other port as may be available.

14. Frustration of Contract:

14.1 Should Seller be prevented from fulfilling his obligations hereunder during the period stipulated
herein by reasons of act of God, act of Sovereign, government or parliament, consequences of
hostilities or warlike operations, blockade, political or civil disturbances or insurrections, riots, strikes,
lock-outs, combination of workmen or any other cause beyond his control which he could not
reasonably have been expected to anticipate and such cause or causes continue for a period of twelve
(12) calendar months from the commencement thereof, any obligations hereunder relating to
shipments or deliveries the fulfilment of which is thus prevented and payment therefore shall be
cancelled and no claim shall lie by either party against the other in respect of loss or damage arising
out of such cancellation.

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14.2 Should such cause or causes continue for a period of less than twelve (12) calendar months any
outstanding shipments shall be shipped and any outstanding obligations hereunder shall be fulfilled
as soon as possible after such cause(s) cease(s) to operate but in no event later than six (6) calendar
months after such cessation.

15. Arbitration:

15.1 Any dispute arising out of this contract shall be settled by arbitration in London, according to the
Articles and Regulations of the Rubber Trade Association of Europe.

15.2 When either party to this contract claims that a default has occurred, then, failing an amicable
settlement, the dispute shall be placed before arbitrators and if the latter decide that a default has
occurred, the contract shall be closed out at a price and weight, which price shall be the estimated
market value of the rubber contracted for on the day the default has occurred or is established within
the discretion of the arbitrators with a penalty of not less than one (1) per cent of the value of the
contract.

15.3 In the event of their being more than one contract subsisting between the same parties, which shall be
closed in pursuance of the Articles and Regulations of the Association, an account shall be taken of
what is due from the one party to the other in respect of such contracts, and the sum due from the one
party shall be set off from the sum due from the other party, and the balance of the accounts and no
more shall be claimed or paid on either side respectively.

15.4 When the subject matter and terms of contracts are identical, or identical except as to date, quantity or
price, all arbitrations shall be held as between first Member Seller and last Member Buyer as though
they were the only contracting parties (notwithstanding any provisions to the contrary contained in the
Arbitration Act 1996 or any statutory modification or re-enactment thereof for the time being in force),
and the award made in pursuance thereof, subject to the right of appeal to the Association, shall be
binding on all intermediate parties provided that the terms of the contract have been duly fulfilled so
far as they are concerned.

15.5 All arbitrations shall be held in accordance with the provisions of the Regulation 63 of the Association,
and unless arbitrators otherwise direct, all differences due under any arbitration award, whether
arising out of claims for default, or claims on quality, or otherwise, shall be paid in cash in London
within seven (7) business days from the date of the award. In the event of an appeal, payment may be
suspended pending the result of the appeal; but should the award be upheld the amount due shall be
increased by interest at such rate of interest as may be determined by the Appeal Tribunal and
payment shall be due within three (3) business days of the result of the appeal being made known to
the losing party.

15.6 This contract shall be construed according to the Laws of England whatever be the residence or
nationality of the parties, and its performance shall, in every part and incident, be considered due in
England for the purpose of jurisdiction, and the Courts of England or Arbitrators in England, as the
case may be, shall have absolute jurisdiction over all disputes which may arise under this contract, and
decisions shall be enforceable as final judgements in any country.

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SUPPLEMENTARY CONDITIONS

1. Insurance

1.1 If Buyer specifically so requests, Seller shall effect insurance in accordance with the International
Cargo Clauses (A) of 1st January 2009 at the price of this contract plus 10 per cent or such other terms
as may be agreed between Buyer and Seller in accordance with Principal Condition 7, for Buyer’s
account.

1.2 If insurance of War Risks cannot be effected, the Seller shall at once notify the Buyer, whereupon the
shipment of this contract or any portion unshipped, shall be postponed until such time as War Risk
can be effected.

2. Notices

2.1 Any notice to be given under this contract must be made by e-mail or telefax or hand-delivery and
passed on by all parties to the last known e-mail address or telefax number or business address with
due despatch but in any case within two (2) business hours of receipt.

2.2 All parties must acknowledge receipt of every notice by e-mail or telefax or delivery by hand in a
manner that clearly identifies the recipient and the contract within one (1) business hour.

3. Non-Business Days

3.1 When an act has to be done on or before a given day, and such day is a non-business day (which shall
include any day declared as such by the Rubber Trade Association of Europe), such act must be done
on or before the next following business day, unless provision is made to the contrary in these
Supplementary Conditions.

3.2 Every Saturday and Sunday and Bank Holiday or substitute Bank Holiday in England and Wales shall
be considered non-business days.

3.3 Member or non-Member parties to the contract prevented from acting by a local non-business day or
by closure of the local business day must ensure that the act is done on or before the next following
local business day or the business hours specified in these Conditions and, if required by other parties
to the contract or arbitrators, to provide evidence of the local non-business period. This clause shall
have no effect on Supplementary Clause 4.2.

4. Declaration of Shipment

4.1 Declaration of Shipment must be issued by the fist Member Seller by receipt-acknowledged e-mail or
telefax or hand-delivery fully in accordance with Principal Condition 10 and, in addition, shall include
the identity of the last Member Buyer. In the case of shipments made in containers, the provisional
declaration must state the container numbers and the name of the shipping company upon whose Bill
of Lading the rubber has been shipped.

4.2 If the twenty-first calendar day referred to in Principal Condition 10.3 shall happen to be a non-
business day, the period for the issue of the provisional declaration shall be extended to include the
next following business day. In this case, the next following business day thereafter shall be deemed to
be the date established as the date of default for closing out purposes, failing an amicable settlement
prior to that date.

4.3 A Declaration of Shipment must be passed on by all parties by receipt-acknowledged e-mail or telefax
or hand-delivery within two (2) business hours of receipt. Failure to pass on a Declaration of
Shipment within the time limit specified above shall entitle Buyer to liquidated damages of not less
than one pound sterling per metric ton (£1.00/metric ton) or such higher damages as he shall prove to
have sustained.

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4.4 Where a Final Declaration can be made within the periods stipulated above for Declarations of
Shipment, a Declaration of Shipment need not be made.

5. Declaration of Documents

5.1 Declaration that Documents are ready for delivery shall be made by receipt-acknowledged e-mail or
telefax or hand-delivery and shall contain sufficient particulars as to nett weight, freight, marks,
number, ship, port of shipment and Bill of Lading date, and the identity of the Last Member Buyer, to
enable invoices to be prepared. First Member Seller shall make such Declaration within two (2)
business hours after arrival of Documents. Declarations shall be passed on to subsequent Buyers by
receipt-acknowledged e-mail or telefax or hand-delivery within two (2) business hours of receipt. Any
party holding up Final Declaration beyond the stipulated period shall render himself liable to damages
to be fixed by arbitration. The First Member Seller and each subsequent Buyer shall render invoice to
his Buyer before the expiry of the next business day following Declaration. Any Buyer splitting Final
Declaration shall become last Member Buyer and first Member Seller, and shall state on the
Declaration on whom the Delivery Order will be issued.

5.2 Should first Member Seller make a Final Declaration earlier than the twentieth business day after the
date of the Bill of Lading, it shall be deemed to have been made on the twentieth (20th) business day
after Bill of Lading date, for the purpose of calculating the prompt date.

6. Documents for Payment

6.1 Payment shall be made in full, free from all bank or other transmission charges, in ……………………
against delivery of Shipping Documents, in accordance with Supplementary Conditions Nos. 7 and 8.
Shipment Documents shall consist of:

(i) complete set of clean ‘On Board’ Bills of Lading, or Bill of Lading (and Banker’s guarantee, if
required, for any missing copies) and/or Ship’s Delivery Order and/or Seller’s Delivery
Order (to be accompanied in each case by Banker’s guarantee, if required); and

(ii) invoices for Customs purposes, if required, and/or Seller’s guarantee to produce same within
reasonable time (accompanied by Banker’s guarantee, if required); and

(iii) detailed Weight Note or Seller’s guarantee to hold Buyer harmless against being out of date
with claim for theft or pilferage and/or extra working charges that may be incurred.

6.2 A clean shipping document is one which bears no superimposed clause or notation which expressly
declares a defective condition of the goods and/or packaging.

6.3 Should charges arise from splitting of Documents the responsibility for such charges shall rest on the
party requiring the Documents to be split.

6.4 Documents as from the date of the Bill of Lading shall be for Buyer’s account ship lost or not lost.

7. Inspection of Documents

7.1 Last Member Buyer shall inform first Member Seller with due despatch by receipt-acknowledged
e-mail or telefax or hand- delivery his receipt of Final Declaration, and inspect Shipping Documents
within nine (9) business hours from the time when Documents are ready for this purpose. Delay or
non-fulfilment of this Condition renders last Member Buyer liable to damages to be fixed by
arbitration. On receipt of notification from last Member Buyer of receipt of Final Declaration first
Member Seller shall permit last Member Buyer to inspect the Documents or, alternatively, at last
Member Buyer’s option, despatch by e-mail or telefax or hand-delivery copies of all the Documents,
certified by first Member Seller as true and complete copies, to last Member Buyer. Within the above-
mentioned period for inspection of Documents last Member Buyer shall by e-mail or telefax or hand-
delivery inform first Selling Broker either:

(a) that he has inspected the Documents and that the same are in order, or

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(b) specify any objection to the validity of the Documents.

7.2 In the event of (b), first Member Seller shall take the necessary steps to remove Buyer’s objection and
obtain Buyer’s approval by receipt-acknowledged e-mail or telefax or hand-delivery.

8. Payment

8.1 A printed paper copy of last Member Buyer’s inspection and approval of the Documents shall be
attached and tendered by first Member Seller not later than noon (12.00) London time on the third
(3rd) business day after date of Final Declaration, unless last Member Buyer shall have required earlier
delivery of Documents and shall have so applied by e-mail or telefax or hand-delivery to first Member
Seller in which case a printed paper copy of last Member Buyer’s application shall also be attached to
the Documents by first Member Seller and despatched without delay. No interest shall be allowed to
any Buyer in respect of Documents taken up under this Supplementary Condition.

8.2 Notwithstanding the foregoing, if the vessel has arrived, or is due to arrive, at the port of destination
before the prompt date and shippers are in possession of Shipping Documents, first Member Seller
may issue Final Declaration not earlier than three (3) business days before the arrival of the vessel and
payment shall be made not later than noon (12.00) London time on the third (3rd) business day
thereafter.

8.3 Documents must in all cases be passed on within one (1) business hour of receipt, cash against
delivery. Seller shall not be entitled to tender Documents to next Buyer and claim payment under this
Supplementary Condition 8.3 after 16.00 London time.

8.4 The hours stated in this Supplementary Condition 8.3 are based on London Banks’ closing hour of
17.00, the time in this Supplementary Condition 8.3 shall be automatically altered to correspond to
any alteration which may be made in the said closing hour and such alteration shall be effective for all
contracts made under this Supplementary Condition 8.3 including those dated before the alteration.

9. General

9.1 Uniform Laws on International Sale of Goods shall not apply to this Contract.

9.2 The hours of a business day are from 9.00 to 17.00 London time.

9.3 Any Banker’s guarantee must be issued on a first class international bank.

9.4 Neither the Association nor the Committee shall have any liability whatsoever for the condition of
warehouses approved by the Association, for their suitability for the storage of rubber or the
performance by keepers of such warehouses of any responsibilities which they may assume towards
members of the Association or other persons. Persons placing rubber into such warehouses, or taking
delivery or rubber from such warehouses, shall accordingly have no claim against the Association or
the Committee for any loss or damage thereby incurred, however such loss or damage may be caused.

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