RUDE OIL SALES AGREEMENT between PDVSA-PETRLEO S.A.

and NUSTAR MARKETING LLC dated effective as of March 1, 2008

Table of Contents
Page #

Part I DEFINITIONS AND CONSTRUCTION Article 1 Definitions 1.1 Definitions 1.2 Construction Part II SPECIAL TERMS Article 2 Purchase and Sale Article 3 Quantity 3.1 Annual Contract Quantity 3.2 Monthly Contract Quantity Article 4 Destination; No Resale to Third Parties 4.1 Utilization at the Refineries 4.2 Discharge Documentation Article 5 Price; Adjustment of Price Mechanism 5.1 Price 5.2 Adjustment of Price Mechanism Article 6 Limited Market Adjustment 6.1 Calculation of Limited Market Adjustment 6.2 Expiration of Limited Market Adjustment Article 7 Underlifting Article 8 Payment Terms 8.1 Currency, Time and Place of Payment; Overdue Payments 8.2 Contents of Invoices; Substantiating Documentation 8.3 Payment Expenses 8.4 Security for Payment 8.5 Suspension of Deliveries Article 9 Duration 9.1 Term 9.2 Renewal Part III STANDARD TERMS Article 10 Arrival Procedures and Lifting 10.1 Lifting Program 10.2 Substitution of Vessels 10.3 Advice of ETA -i-

1 1 1 7 7 7 7 7 7 9 9 9 9 9 9 10 10 11 12 12 12 13 13 13 14 14 14 14 14 14 14 17 17

10.4 Notice of Readiness 10.5 Vessel Requirements; Security Regulations Article 11 Loading Conditions; Demurrage 11.1 Berthing of Vessels; Commencement of Laytime 11.2 Shifting Loading Point of Vessels 11.3 Allowed Laytime 11.4 Adjustments to Laytime and Time on Demurrage 11.5 Demurrage 11.6 Buyers Liability for Delay and Damage Article 12 Quantity Measurements 12.1 Determination of Quantity 12.2 Volume Corrections for Temperature 12.3 Conclusiveness of Measurements Article 13 Quality 13.1 Determination of Quality 13.2 Analysis of Samples 13.3 NO WARRANTIES Article 14 Delivery 14.1 Passage of Title 14.2 Port and Loading Expenses 14.3 Loading Port Regulations 14.4 Buyers Knowledge of Loading Port Facilities; Standard Procedures 14.5 Hazardous Warning Responsibility Article 15 No Set-Off Article 16 Notice of Claims Article 17 Termination 17.1 Termination 17.2 Termination Not to Relieve Buyer of Obligations 17.3 Acceleration 17.4 Termination for an Insolvency Event 17.5 No Gifts 17.6 Other Rights and Remedies Article 18 Confidentiality Article 19 No Third-Party Beneficiaries; Assignment Article 20 Force Majeure 20.1 Relief from Liability 20.2 Notice 20.3 Payment for Oil Sold and Delivered -ii-

17 18 19 19 20 20 20 22 23 23 23 24 25 25 25 25 26 26 26 26 26 26 27 27 28 28 28 29 29 29 29 29 30 30 31 31 31 31

20.4 Obligation to Apportion 20.5 No Makeup of Deliveries Excused by Force Majeure 20.6 No Extension of Contract; Right to Terminate Article 21 Dispute Resolution; Governing Law 21.1 Settlement by Arbitration 21.2 Governing Law 21.3 Buyers Waiver Article 22 Representations and Warranties 22.1 Buyer Representations 22.2 Seller Representations Article 23 Liquidated Damages and Limitation of Liability 23.1 Failure to Deliver Oil 23.2 Limitation of Liability Article 24 Compliance with Law Article 25 No Waiver; Cumulative Remedies Article 26 Severability of Provisions Article 27 Notices Article 28 Satisfactory Documentation Article 29 Merger 29.1 Exclusive Agreement 29.2 General Terms and Conditions Article 30 Amendments and Waivers; Counterparts 30.1 Amendments and Waivers 30.2 Counterparts -iii-

31 32 32 32 32 32 32 32 32 33 34 34 34 35 35 35 36 36 37 37 37 37 37 37

CRUDE OIL SALES AGREEMENT This CRUDE OIL SALES AGREEMENT ( Agreement ) is entered into on March 19, 2008 and dated effective as of March 1, 2008, by and between PDVSA-Petrleo S.A., a corporation organized under the laws of the Bolivarian Republic of Venezuela ( Seller ), represented by Mr. Fernando Valera, Executive Director of Supply and Commerce, and NuStar Marketing LLC, a Delaware limited liability company ( Buyer ), represented by Mr. Curtis V. Anastasio, its Chief Executive Officer and President. Seller and Buyer may sometimes hereinafter be referred to individually as a Party , and, collectively, as the Parties . RECITALS WHEREAS , NuStar Asphalt Refining, LLC, a Delaware limited liability company and an affiliate of Buyer ( NAR ), has agreed to acquire from CITGO Asphalt Refining Company ( CARCO ) certain asphalt refineries located in Paulsboro, New Jersey and Savannah, Georgia ( Refineries ) pursuant to that certain Sale and Purchase Agreement, dated as of November 5, 2007, between CARCO and NAR ( SPA ); WHEREAS , one of the conditions to NARs proceeding to a closing of the transactions contemplated by the SPA is the execution and delivery by Seller of this Agreement to supply crude oil to the Refineries during the term; WHEREAS , Seller desires to sell and deliver to Buyer, and Buyer wishes to purchase and lift from Seller, crude oil for processing at the Refineries in accordance with the terms and conditions hereof; NOW, THEREFORE , in consideration of the premises and the mutual representations, warranties, covenants, agreements and undertakings hereinafter set forth or referred to in this Agreement, the Parties hereby agree as follows: PART I DEFINITIONS AND CONSTRUCTION Article 1 Definitions 1.1 Definitions . For purposes of this Agreement, the following terms, when capitalized, shall have the meanings indicated below: (a) Affiliate means with respect to another entity, any entity which, directly or indirectly, controls, is controlled by or is under common control with, such other entity. For purposes of this definition, control (including, with correlative meanings, the terms controlled by and under common control with) means (i) the ownership, directly or indirectly, of at least 50% of the voting securities or other equity interests in such entity and/or

(ii) the right to determine management direction and policies of such entity, whether through majority representation on the applicable governing board or by contract; (b) (c) (d) (e) (f) Aggregate Deliveries shall have the meaning set forth in Article 23.1; Aggregate Nominated Volume shall have the meaning set forth in Article 23.1; Agreed Laydays shall mean the three-Day range for the arrival of a vessel set forth in an Agreed Lifting Program determined pursuant to Article 10.1; Agreed Lifting Program shall mean a final lifting program for a Month determined pursuant to Article 10.1; Agreement shall mean this Crude Oil Sales Agreement, including this Part I, the Special Terms contained in Part II hereof, the Standard Terms contained in Part III hereof, and all Exhibits attached hereto, as the same may be amended, modified or supplemented from time to time; All Fast shall mean such time as a vessel is completely moored at the cargo transfer point with gangway down and secured; Allowed Laytime shall mean the period of time which Seller shall be allowed, in accordance with Article 11.3, to complete the loading of a vessel without incurring demurrage; Annual Accounting shall have the meaning set forth in Article 23.1; Annual Contract Quantity shall have the meaning set forth in Article 3.1; API shall mean the American Petroleum Institute; API-MPMS shall have the meaning set forth in Article 12; ASBA shall mean the Association of Ship Brokers and Agents; Asphalt Season shall mean the period comprised of the Asphalt Season Months of any Year; Asphalt Season Months shall mean the calendar months of March, April, May, June, July, August and September; ASTM shall mean the American Society for Testing and Materials; Barrel shall mean a quantity of crude oil equal to forty-two (42) Gallons; -2-

(g) (h) (i) (j) (k) (l) (m) (n) (o) (p) (q)

(r) (s) (t) (u) (v) (w) (x) (y) (z) (aa) (bb) (cc) (dd) (ee) (ff) (gg)

Banking Day shall mean any Day other than Saturday, Sunday or a Day on which banking institutions in New York, New York, United States are authorized or required by law to close; BCF 13 shall mean crude oil of the Bachaquero BCF -13 type, typically having characteristics within the ranges specified in Exhibit 1 ; Boscn shall mean crude oil of the Boscn type, typically having characteristics within the ranges specified in Exhibit 1 ; Business Day shall mean any Day other than Saturday, Sunday or any national holiday in Venezuela; Buyer shall have the meaning set forth in the Preamble to this Agreement; CARCO shall have the meaning set forth in the Preamble to this Agreement; Cargo shall mean a cargo of Oil to be sold by Seller and loaded by Buyer into one of its vessels during any Lifting Month; Contract Year shall mean, except with respect to the First Contract Year and the Final Contract Year, a Year; Credit shall have the meaning set forth in Article 6.1(c); Cumulative Net Surplus means the sum of all Quarterly Surpluses less the sum of all Quarterly Deficits since the commencement date of the Agreement; This paragraph (bb) is intentionally left blank; Day shall mean a calendar day; Deliveries shall have the meaning set forth in Article 23.1; Defaulting Party shall have the meaning set forth in Article 17.4; ETA shall mean estimated time of arrival; Final Contract Year shall mean the period commencing on January 1 of the Year in which the later of the expiration of the Initial Term or the last Renewal Term of this Agreement occurs and ending on the anniversary date of this Agreement occurring in such Year; First Contract Year shall mean the period commencing on the date of this Agreement and ending on December 31, 2008; -3-

(hh)

(ii)

FOB shall have the meaning ascribed to such term in Incoterms (2000 edition), published by the International Chamber of Commerce; provided , however , that, in the event of any conflict between the provisions of the Incoterms definition and this Agreement, the provisions of this Agreement shall apply; Formula Price shall have the meaning set forth in Article 6.2(a); Force Majeure shall have the meaning set forth in Article 20.1; Gallon shall mean a unit of volume, measured at 60F (equivalent to 15.56C), equal to 231 cubic inches or 3.7853 liters;

(jj) (kk) (ll)

(mm) General Terms and Conditions shall mean the Ministrys General Terms and Conditions for PDVSA FOB Crude Oil Sales (November 2006) attached hereto as Exhibit 6 , as the same may be modified as provided herein; (nn) (oo) ICC Rules shall have the meaning set forth in Article 21.1; Investment Grade shall mean a rating of (i) BBB- or higher by Standard and Poors Rating Services, (ii) Baa3 or higher by Moodys Investors Service, Inc. and (iii) BBB- or higher by Fitch Ratings, Ltd. (or, if any such agency changes its rating system, the equivalent successor rating applied by such agency at the time in question); Governmental Mandate shall have the meaning set forth in Article 20.1; Initial Term shall have the meaning set forth in Article 9.1; Insolvency Event shall mean that an entity (i) is dissolved (other than pursuant to a consolidation, amalgamation or merger); (ii) becomes insolvent or is unable to pay its debts or admits in writing its inability generally to pay its debts as they become due; (iii) makes a general assignment, arrangement or composition with or for the benefit of its creditors; (iv) (A) institutes a proceeding seeking a judgment of insolvency or bankruptcy or any other relief under any bankruptcy or insolvency law or other similar law affecting creditors rights, or a petition is presented for its winding-up or liquidation by it, or (B) has instituted against it a proceeding seeking a judgment of insolvency or bankruptcy or any other relief under any bankruptcy or insolvency law or other similar law affecting creditors rights, or a petition is presented for its winding-up or liquidation and such proceeding either (1) results in a judgment of insolvency or bankruptcy or the entry of an order for relief or the making of an order for its winding-up or liquidation or (2) is not dismissed, discharged, stayed or restrained in each case within sixty (60) Days of the institution or presentation thereof; (v) passes a resolution for its winding-up or liquidation (other than pursuant to a consolidation, amalgamation or

(pp) (qq) (rr)

-4-

merger); (vi) seeks or becomes subject to the appointment of a receiver, bankruptcy trustee, custodian or other similar official for it or for all or substantially all its assets; or (vii) has a secured party take possession of all or substantially all its assets or has a distress, execution, attachment, sequestration or other legal process levied or enforced on or against all or substantially all its assets; provided that such secured party maintains possession, or any such process is not dismissed, discharged, stayed or restrained, in each case within thirty (30) Days thereafter; (ss) (tt) (uu) (vv) ISPS Code shall have the meaning set forth in Article 10.5.2(d); Letter of Credit shall have the meaning set forth in Article 8.4; Lifting Month shall mean the Month for which a Cargo is programmed for lifting; Limited Market Adjustment shall have the meaning set forth in Article 6.1(a);

(ww) Loading Point (either standing alone or as part of another defined term) shall mean a terminal, berth, jetty, buoy, dock, anchorage, sea terminal, mooring, submarine loading line, or any other place, including alongside lighters or other vessels, where a vessel can be loaded; (xx) (yy) (zz) Loading Port shall mean any of Sellers Loading Points located at Puerto Miranda, La Salina and Bajo Grande; MBD shall mean a thousand Barrels per Day; Ministry shall mean the Ministerio del Poder Popular para la Energa y Petrleo of Venezuela ;

(aaa) Month shall mean a calendar month; (bbb) Monthly Contract Quantity shall have the meaning set forth in Article 3.2; (ccc) NAR shall have the meaning set forth in the Preamble to this Agreement; (ddd) Nominated Volume shall have the meaning set forth in Article 23.1; (eee) Non-Affiliated Buyer Purchases shall have the meaning set forth in Article 6.2(a); (fff) Non-Defaulting Party shall have the meaning set forth in Article 17.4; (ggg) NOR shall have the meaning set forth in Article 10.4; -5-

(hhh) Oil shall mean Venezuelan crude oil of the types specified in Exhibit 1 ; (iii) (jjj) P&I Club shall mean a maritime protection and indemnity mutual insurance company; Parties shall mean Seller and Buyer, which may sometimes hereinafter be referred to individually as a Party and collectively as the Parties;

(kkk) Quarter means any period of three consecutive Months commencing January 1, April 1, July 1 or October 1 of any Year; (lll) Quarterly Deficit means, with respect to any Quarter, the amount, if any, by which the Formula Price is less than the Maya parity price calculated in accordance with Exhibit 4 ;

(mmm)Quarterly Surplus means, with respect to any Quarter, the amount, if any, by which the Formula Price exceeds the Maya parity price calculated in accordance with Exhibit 4 ; (nnn) Ratings Agencies shall mean Standard and Poors Rating Services, Moodys Investors Service, Inc. and Fitch Ratings, Ltd.; (ooo) Refineries shall have the meaning set forth in the Preamble to this Agreement; (ppp) Renewal Term shall have the meaning set forth in Article 9.2; (qqq) S & W shall mean sediments and water; (rrr) Security Regulations shall have the meaning set forth in Article 10.5.2(d); Specified Loading Port shall mean a Loading Port specified in an Agreed Lifting Program; (sss) Seller shall have the meaning set forth in the Preamble to this Agreement; (ttt) (uuu) SPA shall have the meaning set forth in the Preamble to this Agreement; (vvv) Storage Facility shall have the meaning set forth in Article 6.1(b); (www)United States or U.S. shall mean the United States of America; (xxx) U.S. Dollars or U.S.$ and cents shall mean the lawful currency of the United States of America; (yyy) Venezuela shall mean the Bolivarian Republic of Venezuela; -6-

(zzz) Worldscale shall mean, at any relevant time under this Agreement, the applicable standard freight rate stated in the most recent edition of the New Worldwide Tanker Nominal Freight Scale jointly published by Worldscale Association (London) Limited and Worldscale Association (NYC) Inc., expressed in U.S. dollars per metric ton for the route specified; (aaaa) Worldscale Assessment shall mean, at any relevant time under this Agreement, the current assessment published in the most recent edition of Platts Oilgram Price Report, under the table representing Dirty cargoes of 50,000 metric ton size for Caribbean to U.S. Gulf Coast routes, in the column labeled WS; and (bbbb) Year shall mean a calendar year. 1.2 Construction . Terms defined in the singular have the corresponding meanings in the plural, and vice versa. All headings herein are for convenience only and shall not affect the construction or interpretation of this Agreement. Unless otherwise specified, all references herein to Parts, Articles and Exhibits are to the Parts, Articles and Exhibits of this Agreement. The terms hereof, herein, hereunder and words of similar import shall refer to this Agreement as a whole and not to the particular Part, Article or Exhibit in which such term appears. PART II SPECIAL TERMS Article 2 Purchase and Sale Subject to and in accordance with the terms and conditions of this Agreement, Seller shall sell and deliver, and Buyer shall purchase and lift, Oil of the Boscn type and the Bachaquero BCF-13 type, each having the typical characteristics set forth on Exhibit 1 and in the quantities set forth on Exhibit 2 . Article 3 Quantity 3.1 Annual Contract Quantity . Except as performance may be expressly excused in accordance with this Agreement, in each Contract Year Seller shall sell and deliver, and Buyer shall purchase and lift, an aggregate quantity of Oil equal to seventy-five thousand (75,000) Barrels times the number of Days in such Contract Year, apportioned between Barrels of Oil of the Boscn type and the BCF-13 type as set forth in Exhibit 2(the Annual Contract Quantity ), subject to an annual tolerance of three hundred twenty-five thousand (325,000) Barrels for each such grade of Oil; provided that, with respect to the First Contract Year and the Final Contract Year, the annual tolerance shall not be prorated for such partial Year periods. 3.2 Monthly Contract Quantity . In satisfaction of Buyers obligation to purchase and lift, and Sellers obligation to sell and deliver, the Annual Contract Quantity (except as performance -7-

may be expressly excused in accordance with this Agreement) during each Month of each Contract Year, Seller shall sell and deliver, and Buyer shall purchase and lift, such number of Barrels of Oil of the Boscn and BCF-13 type as set forth in Exhibit 2 in respect of such Month (the Monthly Contract Quantity ), subject to the following exceptions: (a) an operational tolerance of five percent (5%) on each Cargo of Oil Buyer is scheduled to lift due to conditions at the Loading Port or affecting the vessel utilized by Buyer; (b) notwithstanding Buyers obligations under Article 10.1.5 to minimize deadfreight in developing the Agreed Lifting Program for any Month and solely for the purpose of eliminating deadfreight, Seller shall at its option: (i) permit Buyer to overlift the amount required to accept all vessels as proposed by Buyer in its Lifting Program for such Month; it being understood that Seller shall have no obligation to permit an overlifting in any Month greater than 250,000 Barrels of Boscn and 325,000 Barrels of BCF13; or defer lifting for the last vessel to the first ten (10) Days of the immediately subsequent Month; or specify a short load for the last vessel of either or both types of Oil to limit deliveries in such Month to a level at or above the Monthly Contract Quantity;

(ii) (iii)

provided that: (A) if Seller selects clause (i) above, the resulting quantity overlifted shall be subtracted from the Monthly Contract Quantity for the immediately subsequent Month; (B) if Seller selects clauses (ii) or (iii) above, the resulting quantity underlifted shall be added to the Monthly Contract Quantity for the immediately subsequent Month; and (C) if Seller selects clause (iii) above, Buyer shall present a claim for reimbursement to Seller, and notwithstanding any provision herein to the contrary, Seller shall reimburse Buyer for the allocable portion of deadfreight cost based on the unit cost of freight for the subject vessel and Buyers proposed lifting volume applied to the short-loaded volume; (c) notwithstanding the foregoing clauses (a) and (b) to the contrary, solely in respect of the first Month of the First Contract Year, Buyer shall have the option to nominate a Monthly Contract Quantity with a tolerance of thirty percent (30%) for each grade of Oil to enable Buyer to offset any Oil inventory surplus or shortfall at the Refineries. In the event Buyer overlifts or underlifts the Monthly Contract Quantity in a given Month as a result of any of the exceptions set forth in clauses (a) or (b) above, Buyer shall accumulate and apply the net amount of such overlifted or underlifted quantity toward the Monthly Contract Quantity to be lifted in any subsequent Month. -8-

Article 4 Destination; No Resale to Third Parties 4.1 Utilization at the Refineries . The Oil to be sold by Seller to Buyer is intended to be utilized by Buyer at the Refineries. No Cargo purchased by Buyer under this Agreement may be shipped to any other facility except: (a) a facility utilized by Buyer for storage of Oil; (b) a facility with which Buyer has an arrangement to process such Cargo and receive all refined products produced therefrom; (c) any other U.S. refinery owned by Buyer or its Affiliates; provided , however , that, any delivery to such other U.S. refinery shall not relieve Buyer or its Affiliates from any of its obligations to lift, or receive delivery of, the full quantity of crude oil required to be lifted or received from Seller under any other long-term supply arrangement for such refinery. In the event that Buyer shall deliver any Cargo of Oil purchased from Seller hereunder to any other refinery within Buyers or its Affiliates U.S. refi ning system which is located in a geographic market other than that in which the Refineries are located, the prices determined pursuant to the provisions of Exhibit 3 shall be the Sellers prices applicable for deliveries in such other geographic market; o r (d) with respect to any Cargo lifted by Buyer, any facility with the express written consent of Seller having been first obtained, which consent shall not be unreasonably withheld if it is requested in connection with an event described in Article 20.1. Buyer shall not resell any Oil purchased under this Agreement to any Person not an Affiliate of Buyer. 4.2 Discharge Documentation . Upon Sellers request, Buyer shall provide, for any Cargo of Oil delivered hereunder, a discharge certificate, which may consist of: (a) an independent inspectors certificate of discharge, (b) a customs fees receipt or other government document evidencing the port in which the Cargo of Oil was discharged, (c) the exemption from customs fees at the port of discharge or (d) any other document that Seller deems an appropriate substitute for the foregoing. Article 5 Price; Adjustment of Price Mechanism 5.1 Price . The price for each type of Oil to be sold by Seller and purchased by Buyer hereunder shall be determined in accordance with the provisions of Exhibit 3 , as adjusted by the Limited Market Adjustment determined in accordance with the provisions of Article 6 and Exhibit 4 . 5.2 Adjustment of Price Mechanism . Seller shall have the right at any time and from time to time, based on (i) discontinuance of the published market markers in the pricing formulas set forth in Exhibit 3 or the Limited Market Adjustment set forth in Exhibit 4 , (ii) changes in circumstances which make the applicability of the published market markers in the pricing -9-

formula or the Limited Market Adjustment inconsistent with a competitive market-based pricing formula, or (iii) changes in the quality of one or more types of Oil, to notify Buyer that it wishes to adjust or amend the pricing provisions of Exhibit 3 and/or the Limited Market Adjustment in Exhibit 4 with the objective of ensuring that the price of Oil reflects market conditions for similar crude oils. Sellers notice sha ll state the proposed effective date thereof, which shall be no earlier than thirty (30) Days after the date of its notice; provided , however , that the succeeding provisions of this Article 5.2 shall only apply if such proposed adjustment or amendment is applicable to Sellers publicly announced pricing formula for deliveries of Oil destined for ports in the United States and that the new price shall not apply to Oil already nominated by Buyer. Buyer shall then have thirty (30) Days in which to accept or reject such proposed changes. If Buyer accepts Sellers proposal or does not notify Seller within such thirty (30) Day period that it rejects Sellers proposal, then the provisions of Exhibit 3 and/or Exhibit 4 shall be deemed amended in accordance with Sellers proposal as of the effective date specified in Sellers notice. If Buyer rejects Sellers proposal, then the provisions of Exhibit 3 and/or Exhibit 4 shall remain in effect and unchanged; provided , however , that Seller shall have the right to submit the matter to arbitration pursuant to Article 21.1. In such arbitration, each Party shall submit its proposed alternative pricing mechanism, and the arbitration panel shall determine the appropriate adjustments, if any, to be made to the pricing formulas and/or the Limited Market Adjustment as of the effective date specified in Sellers notice. Article 6 Limited Market Adjustment 6.1 Calculation of Limited Market Adjustment . (a) For each Quarter during the Initial Term, Seller shall set off and deduct, and Buyer shall receive a credit and reduction for, an amount equal to (a) the difference, if any, between (i) the price per Barrel of Oil charged by Seller with respect to each Cargo of Oil lifted during such Quarter calculated in accordance with Exhibit 3 and (ii) the price per Barrel of Oil calculated in accordance with Exhibit 4 , multiplied by (b) the respective quantities of Boscn Oil and BCF-13 Oil delivered to the Refineries with respect to each such Cargo of Oil. Such setoff, deduction, credit and reduction is referred to herein as the Limited Market Adjustment , and each Limited Market Adjustment shall be determined and applied in accordance with clause (b) below; it being understood that any Cargo of Oil not delivered to either of the Refineries shall be disregarded for purposes of the Limited Market Adjustment. (b) In the event that Buyer shall deliver any Cargo of Oil to any storage facility ( Storage Facility ) for subsequent redelivery to a Refinery, upon the redelivery of such Cargo to a Refinery, such Cargo shall, for purposes of calculating the Limited Market Adjustment, if any, applicable to such Quarter, be deemed to have been delivered to a Refinery in the Quarter within which such redelivery occurs and the prices to be used shall be the prices applicable at the time of the original purchase. (c) To the extent that, at any time, the sum of all Quarterly Surpluses exceeds the sum of all Quarterly Deficits less any previous Credits (as defined below) by more than U.S.$10 Million, Buyer shall receive a credit (each, a Credit ) against the purchase price of Boscn Oil or BCF-13 Oil delivered to the Refineries or any Storage Facility in the succeeding Quarter equal -10-

to the amount by which the Cumulative Net Surplus, less previous Credits, exceeds U.S.$10 Million, applied at the rate of U.S.$5.00 per Barrel beginning with the first Barrel delivered in such succeeding Quarter. (d) Within ten (10) Days after each Quarter during the Initial Term, Buyer shall provide to Seller a detailed report including (i) the calculation of the Limited Market Adjustment for the preceding Quarter in accordance with Exhibit 4 , and (ii) the calculation of any Credit for such Quarter. Within ten (10) Days after receipt of such report, Seller shall notify Buyer of any claimed discrepancy therein and any proposed amendment thereto; it being understood that the Parties shall, in such event, undertake in good faith to resolve such discrepancy promptly and in any event prior to the issuance of the first invoice for Oil delivered in such Quarter. (e) For purposes of calculating any Limited Market Adjustment as well as for purposes of applying any Credit, Oil shall be considered to have been delivered to a Refinery or a Storage Facility on the Day on which the bill of lading for the Cargo in question was issued at the Loading Port, as reflected in such bill of lading. (f) To the extent that, at the expiration of the Initial Term, the sum of all Quarterly Surpluses exceeds the sum of all Quarterly Deficits less any previous Credits (irrespective of the U.S.$10 Million threshold specified in clause (b) above), such difference, if any, shall be paid in cash by Seller to Buyer or delivered in Oil at the price provided under this Agreement, at the option of Seller, in either case within thirty (30) Days after expiration of the Initial Term. (g) Any outstanding Credit owing to Buyer shall accrue interest at a per annum rate equal to one percent (1%) above the prime rate in effect from time to time as announced by Citibank, N.A. at its principal office in New York, New York, United States, calculated from the last Day of the Quarter in which such Credit arises until the bill of lading date for the Cargo of Oil to which such Credit is applied. 6.2 Expiration of Limited Market Adjustment . (a) The Limited Market Adjustment clauses set out above will be deemed to have lapsed once the average volume of Sellers export sales of heavy crude oils (i.e., crude oils with an API gravity less than 13 degrees and a sulfur content greater than 2.5% by weight) subject to the formula price for each of Boscn Oil or BCF-13 Oil set forth in Exhibit 3 ( Formula Price ) for deliveries into the US Gulf Coast, the US East Coast and the Caribbean to non-Affiliated buyers other than Buyer exceeds 60,000 BPD for a period of fourteen (14) consecutive Asphalt Season Months, based on contracts with an average of two (2) or more different customers during the same period provided that (i) such non-Affiliated buyers purchase crude oil from Seller at the Formula Price on a spot basis or pursuant to contracts under which they have the right to terminate upon prior notice of ninety (90) Days or less, (ii) the Formula Price applicable to such non-Affiliated buyers does not include a price protection clause and (iii) any purchases of crude oil by Buyer from Seller pursuant to spot or term agreements in excess of the Annual Contract Quantity shall be deemed to be purchases by non-Affiliated buyers for purpose of (i) and (ii) above ( NonAffiliated Buyer Purchases ). Seller shall report periodically to Buyer on the average volume of crude oil sold under the Formula Price to such non-Affiliated buyers and shall -11-

provide written confirmation to Buyer when such average daily volume conditions have been met. (b) In the event that, after the Limited Market Adjustment mechanism is deemed to have lapsed, (i) during any six (6) month period, the average volume of Sellers expor t sales of heavy crude oils (i.e., crude oils with an API gravity less than 13 degrees and a sulfur content greater than 2.5% by weight) for deliveries into the US Gulf Coast, the US East Coast and the Caribbean to non-Affiliated buyers (including Non-Affiliated Buyer Purchases) other than Buyer at the Formula Price on a spot basis or pursuant to term supply contracts under which such buyers have the right to terminate upon prior notice of ninety (90) Days or less is less than 20,000 BPD, or (ii) the average number of such non-Affiliated buyers of crude oil at the Formula Price (other than Buyer) has been less than two (2) per Asphalt Season, then Seller and Buyer will agree on such alternative pricing mechanism as may be necessary to meet the objective that the price of Oil be market-related in parity with crude oil of the Maya type. Article 7 Underlifting Buyer acknowledges that its commitment to purchase the Annual Contract Quantity in each Year is an essential term of this Agreement. Except as otherwise provided in this Agreement and subject to the provisions of Article 20, if, in any Lifting Month, Buyer fails to lift any Cargo scheduled to be lifted during such Lifting Month, Seller shall have the right to recover its damages for Buyers breach of its li fting obligation. Notwithstanding the foregoing provisions of this Article 7, Buyer shall not be required to lift, nor be subject to any liability for lifting less than, the Monthly Contract Quantity in any Month if and to the extent that: (a) such underlifting is due to demonstrated operational reasons concerning only the Loading Ports or the vessels involved and does not in any event exceed ten percent (10%) of the Monthly Contract Quantity for such Month; (b) such underlifting comes as a consequence of Buyer performing remedial work (whether planned or unplanned) or an annual turnaround at the Refineries, or either of them, provided that Buyer notifies Seller of any planned turnaround at least ninety (90) Days prior to the Month in which the turnaround is planned and of any planned remedial work as soon as reasonably possible; (c) such underlifting is the result of Buyer decreasing inventories of Oil at the Refineries, or either of them, having previously increased such inventories by lifting in excess of the Monthly Contract Quantity due to increased risk of weather-related interruption of supply; or (d) such underlifting is due to an underdelivery by Seller. Article 8 Payment Terms 8.1 Currency, Time and Place of Payment; Overdue Payments . Buyer shall make all payments required to be made by it under this Agreement in immediately available U.S. Dollars, without any discount or deduction whatsoever, by wire transfer to such account at such bank as -12-

may be designated by Seller from time to time. Payments in respect of Oil sold and delivered shall be made within thirty (30) Days after the date of the bill of lading therefor (bill of lading date excluded). All other payments to Seller shall be made fifteen (15) Days after presentation by Seller of a written demand setting forth the provisions of this Agreement giving rise to the payment obligation, the nature of such obligation, and the amount thereof. If any payment hereunder is due on a Day which is not a Banking Day, such payment shall be due on the immediately following Banking Day. In the event that Buyer fails to make any payment when due, then, to the extent permitted by applicable law and without prejudice to the application of any other provision hereof or to any other remedy provided to Seller under this Agreement or otherwise (including, without limitation, Articles 8.4 and 8.5), interest shall accrue daily on the amount of the overdue payment, commencing on the date such payment was due, at a rate per annum equal to one percent (1%) above the prime rate in effect from time to time as announced by Citibank, N.A. at its principal office in New York, New York, United States; it being understood and agreed that each change in the prime rate shall take effect on the Day on which such change is announced by Citibank, N.A. Interest shall be computed for the actual number of Days elapsed on the basis of a year consisting of three hundred sixty (360) Days, payable on demand. 8.2 Contents of Invoices; Substantiating Documentation . Each invoice shall set forth at least the following information: (a) the date(s) of delivery in respect of which the invoice is rendered; (b) the Loading Point(s) for such delivery; (c) the volume of the delivery stated in Barrels; and (d) the purchase price for each type of Oil comprising the delivery, and the terms of payment. Upon request, each Party shall furnish to the other Party all available substantiating documents incident to the delivery, including a satisfactory source document for each volume delivered during any Month. The source documents shall state at least the volume, type and quality of Oil delivered and method of measurement, the corrected API gravity, temperature, and S & W content. 8.3 Payment Expenses . Buyer shall bear all expenses and bank charges in connection with any payments made to Seller under this Agreement, including, without limitation, any costs of establishing and obtaining confirmation of a Letter of Credit referred to in Article 8.4. 8.4 Security for Payment . If at any time (i) Buyer fails to make any payment required to be made by it hereunder when and as the same shall become due and payable, (ii) Buyer defaults in any of its material obligations under this Agreement, or (iii) the senior unsecured long-term debt securities of Buyer for which there is no recourse to or credit enhancement from any party other than NuStar Energy L.P. or its subsidiaries is rated below Investment Grade by at least two of the three Ratings Agencies, then Selle r shall have the right to require Buyer (at Buyers option) to purchase Oil or make other payments required hereunder by advance payment of immediately available funds or by posting of an irrevocable documentary or standby letter of credit ( Letter of Credit ); provided , however , that any such advance payment or Letter of Credit shall no longer be required, and if outstanding, it shall be promptly returned by Seller, when and if such debt securities are rated Investment Grade or better by at least two of the three Ratings Agencies. The amount of the advance payment or Letter of Credit shall be equal to Sellers reasonable estimate of the value of Oil, calculated in accordance with Exhibit 3 , for which the advance payment or a Letter of Credit is provided (which may be, at Sellers discretion, for a particular shipment or for some or all shipments in a Month, plus ten percent (10%)), and paid or -13-

posted not later than seven (7) Business Days prior to the first Day of the Agreed Laydays. Any such Letter of Credit shall be opened or confirmed by an international bank having a net asset value of not less than Two Hundred Fifty Million U.S. Dollars (U.S.$250,000,000) and such Letter of Credit shall be otherwise satisfactory in form and substance to Seller. 8.5 Suspension of Deliveries . Without prejudice and in addition to any of Sellers rights under Article 17 or otherwise, if Buyer fails to make any undisputed payment required to be made by it hereunder when the same shall become due and payable or fails to make an advance payment or post a Letter of Credit as required in accordance with Article 8.4, then Seller shall have the right at its sole discretion to suspend further deliveries of Oil until Buyer makes the required payment, together with any accrued interest thereon, or posts a Letter of Credit as required by Seller in accordance with Article 8.4. Article 9 Duration 9.1 Term . The term of this Agreement shall commence on the date hereof and shall continue in full force and effect until the seventh (7th) anniversary date of this Agreement, ( Initial Term ). 9.2 Renewal . This Agreement shall be renewed for successive two (2) Year terms after the Initial Term (each, a Renewal Term ), unless earlier terminated by a Party in accordance with the provisions of this Agreement. Either Party may terminate the Agreement at the end of the Initial Term or any Renewal Term by delivering written notice of termination at least one (1) year prior to the last Day of the Initial Term or to the Renewal Term in question. PART III STANDARD TERMS Article 10 Arrival Procedures and Lifting 10.1 Lifting Program . 10.1.1 Not later than thirty five (35) Days prior to the beginning of the next programmed Lifting Month, Buyer shall furnish Seller with a proposed lifting program for such Lifting Month, specifying the following: (a) a Specified Loading Port for each delivery requested for such Lifting Month; (b) a three-Day period for the arrival of each vessel; (c) each type of Oil to be lifted by Buyers vessels; (d) the number of Cargos to be lifted and the quantity and type of Oil comprising each Cargo; (e) the port of discharge of each Cargo; -14-

(f) in respect of the lifting program for the previously programmed Lifting Month, (i) the name, size and dimensions of each vessel designated for lifting during such Lifting Month, together with the completed vetting information required by Seller for each such vessel; (ii) the names of the vessels agent and Buyers representative, and the vessels P&I Club, which shall be a member of the International Group of P&I Clubs; (iii) documentation instructions; (iv) the time required for deballasting (if any, but which, in any event, shall not exceed six hours); (v) the distribution of the Oil to be loaded (e.g., commingled or segregated); (vi) the name of the proposed independent inspector; and (vii) for at least the last ten (10) loading operations for crude oil for each nominated vessel, the volume loaded as measured on shore in shore tanks or by flow meters and the corresponding volume loaded as measured on board, such volume to be evidenced by documentation (including ullage and innage reports and onboard quantity and slop certificates) satisfactory to Seller; and (g) an estimate of the volumes of the types of Oil that Buyer desires to purchase during the three (3) Lifting Months following such Lifting Month. If Buyer does not furnish Seller with a proposed lifting program complying with the requirements of this Article 10.1.1 for the following Lifting Month within the period specified above, Buyer shall be required to accept the lifting program for such Lifting Month established by Seller. Not later than thirty-five (35) Days prior to the beginning of the first programmed Lifting Month of each Contract Year, Seller shall provide Buyer with a list of objective vetting criteria in respect of vessels acceptable to Seller during such Contract Year. Buyer shall obtain completed vetting information for each vessel nominated by Buyer and submit the same to Seller in accordance with Article 10.1.1(f). Seller shall have the absolute right to reject any vessel nominated by Buyer that does not satisfy Sellers objective vetting criteria. 10.1.2 If the name of a vessel is not known at the time the proposed lifting program for the following Lifting Month is furnished to Seller, Buyer shall notify Seller of such name and other data referred to in Article 10.1.1(f) as soon as possible, but in any event not later than seven (7) Business Days prior to the first Day of the Agreed Laydays for the unspecified vessel. Seller may reject Buyers vessel nomination in the event such vessel does not satisfy Sellers objective vetting criteria, in which case Buyer shall take immediate action to nominate another vessel acceptable to Seller. If the Parties do not reach agreement on nomination of another vessel at least five (5) Business Days prior to the first Day of the Agreed Laydays, Seller shall have the right to cancel that lifting without prejudice to any and all other rights Seller has under this Agreement and without prejudice to Sellers claim for any losses or expenses caused by Buyers failure to nominate an acceptable vessel. If Se ller, at its sole option, elects nevertheless to load a vessel agreed on less than five (5) Business Days prior to the first Day of the Agreed Laydays, the loading of the vessel shall be subject to berth, jetty, buoy, loading platform and loading system availability, as applicable. In no event shall laytime or time on demurrage be charged to Seller for delays incurred because the Parties have not agreed on a vessel within five (5) Business Days prior to the first Day of the Agreed Laydays. 10.1.3 Seller shall be deemed to have accepted Buyers proposed lifting program for the following Lifting Month unless Seller has notified Buyer of alterations thereto at least fifteen -15-

(15) Days prior to the beginning of such Lifting Month. Notwithstanding any provision herein to the contrary, so long as Buyers proposed lifting program for such Lifting Month nominates a quantity of Oil conforming to the Monthly Contract Quantity, as such quantity may be adjusted pursuant to Article 7 and Article 20, and subject to the exceptions set forth in Article 3.2, Seller shall not alter the quantities of Oil described in Buyers proposed lifting program. Seller shall in any event notify Buyer within such time period of the Specified Loading Port to be used by Buyers vessels, to be narrowed to a specific Loading Point not less than five (5) Days prior to the first Day of the Agreed Laydays (subject to adjustment as provided in Article 10.1.4) and the name(s) of the independent inspector(s) proposed by Buyer and accepted by Seller for purposes of Article 12 and Article 13. If Seller timely notifies Buyer of alterations to the lifting program, Buyer shall be deemed to have agreed to those alterations unless, within five (5) Days after Buyers receipt of Sellers notice, Buyer requests Seller to reconsider such alterations. Sellers decision following any such reconsideration shall be final and binding on both Parties. If Seller notifies Buyer that it objects to an independent inspector nominated by Buyer, the Parties shall designate another independent inspector by mutual agreement. The lifting program as finally determined pursuant to the provisions of Article 10.1 for any Lifting Month is referred to herein as the Agreed Lifting Program for such Lifting Month, and the three (3) Day range for the arrival of any vessel contained in any Agreed Lifting Program is referred to herein as the Agreed Laydays for such vessel. 10.1.4 Seller may notify Buyer that any vessel scheduled in an Agreed Lifting Program shall load the Oil at a Loading Point in the Specified Loading Port different from the Loading Point previously specified pursuant to Article 10.1.3 or shall load the Oil at two (2) Loading Ports, provided that such notice is given by Seller (a) at least seventy-two (72) hours prior to the ETA of such vessel, if Buyer has notified Seller of an ETA falling within or after its Agreed Laydays, or (b) at least seventy-two (72) hours prior to the first Day of the Agreed Laydays, if Buyer has notified Seller of an ETA which is earlier than the first Day of the Agreed Laydays. Seller shall not be liable for any charges or expenses incurred by Buyer, including, but not limited to, deviation, as a result of a shift from one Loading Point to another, or the specification of two (2) Loading Ports;provided , however , if Seller exercises its option to change a previously declared Loading Point or to load at two (2) Loading Ports, (i) Buyer shall be compensated by Seller for any time by which the steaming time to the Loading Port(s) or Point(s) to which a vessel is finally ordered exceeds that which would have been taken if vessel had been ordered to proceed to such Port(s) or Point(s) in the first instance at the deviation rate per running Day and pro rata for a part thereof; and (ii) Seller shall pay for extra bunkers consumed during excess time at documented actual replacement cost at the port where bunkers are next taken, less a credit for daily in port fuel consumption during any period of waiting. 10.1.5 Buyer, taking into account Loading Port constraints, shall use commercially reasonable efforts to nominate vessels and schedule liftings so as to avoid deadfreight. Any deadfreight incurred as a result of Buyers nomination of a vessel whose dimensions are larger than those required to transport the Cargo it is scheduled to lift pursuant to Article 10.1.1 shall be for the sole account of Buyer, and Seller shall have no liability therefor by reason of its acceptance of Buyers nomination. In the event that Buyer has a claim against Seller for deadfreight expenses incurred as a result of an underdelivery by Seller, subject to the operational tolerance set forth in Article 3.2 and any event of Force Majeure under Article 20 Buyer shall present such claim in accordance with Article 16. -16-

10.1.6 In working toward each Agreed Lifting Program, the Parties shall cooperate with one another and exercise commercially reasonable efforts to achieve the objective that Oil be nominated, delivered and lifted on a ratable basis, taking into consideration turnarounds, planned and unplanned maintenance, and other operational considerations at the Loading Ports and the Refineries. In the event of scheduled maintenance turnarounds at the Refineries, Buyer will give Seller not less than ninety (90) Days prior written notice of such scheduled maintenance turnaround, and will use commercially reasonable efforts to re-route the volumes affected by the reduced processing capacity of the Refineries to other refineries within Buyers U.S. domestic refining syst em or otherwise redirect such volumes in accordance with Article 4.1 of this Agreement. The Parties will cooperate in good faith to make up for any deliveries of Oil not purchased by Buyer during the turnaround period; provided , however , that Seller shall have no obligation to make up for the volumes of Oil not purchased and delivered during such turnaround period. 10.2 Substitution of Vessels . Buyer shall be entitled to substitute another vessel for any vessel designated in an Agreed Lifting Program; provided , however , that the substitute vessel shall have substantially the same characteristics (including carrying capacity) as the vessel previously nominated and accepted pursuant to Article 10.1 and shall meet the requirements for vessels loading at the particular Loading Port involved; and provided, further, that Buyer shall give Seller notice of the substitution not less than ninety-six (96) hours prior to the first Day of the Agreed Laydays for the substituted vessel and shall then provide all of the information specified in Article 10.1.1(e). In the event that Buyer substitutes a vessel other than in accordance with the provisions of this Article 10.2, Seller may in its sole discretion refuse to load such vessel, or it may load such vessel at any Loading Port on any Day it may specify, whether or not within the Agreed Laydays for such vessel, and Seller shall in no event be liable for demurrage, deadfreight or any other charges with respect to the loading of any such vessel. 10.3 Advice of ETA . Buyer shall arrange for each vessel to advise the Loading Port operator and the vessel agent (with a copy to Seller delivered by e-mail or facsimile) of its ETA at each of the following times: (a) immediately upon the vessels leaving its last port of call before the Loading Port or ninety-six (96) hours before ETA, whichever is later; (b) seventy-two (72) hours before ETA; (c) forty-eight (48) hours before ETA; (d) twenty-four (24) hours before ETA; and (e) immediately upon learning of any material change in its ETA. Seller shall not be liable for demurrage, deadfreight or any other charges in respect of any delay in loading attributable to the failure of a vessel to give notice of its ETA at any of the times enumerated above. 10.4 Notice of Readiness . The Buyer, its representative or the master of the vessel (who shall be deemed to be acting on Buyers behalf) shall give notice of readiness of the vessel -17-

to load ( NOR ) to the vessel agent and the Loading Port operator (with a copy to Seller delivered by e-mail or facsimile). NOR shall not be given until the vessel (a) has anchored at the customary anchorage area at the Loading Port, (b) has been granted free pratique, (c) has received the necessary clearance by customs and all other governmental authorities and (d) is ready in all other respects to load; provided , however , that NOR may be given before the conditions specified in clauses (b) and (c) above have been satisfied if, in accordance with the practice at the Loading Port, such conditions may be satisfied only after the vessel has been brought to the Loading Point. If, notwithstanding having tendered NOR, the vessel is found not to be ready to load, such NOR will be disregarded and Buyer shall be obligated to give a new NOR when it is in fact ready to load. 10.5 Vessel Requirements; Security Regulations . 10.5.1 Loading Port(s): (a) Seller shall accept only vessels having the following measurements:
PUERTO BAJO GRANDE MIRANDA LA SALINA

LENGTH, feet (maximum) 751 DRAFT, feet (maximum) 35 WIDTH no limit DWT (maximum) 42,000 long tons 115,000 100,000 (b) Should there be a material change in the configurations specified herein, Seller shall promptly advise Buyer in writing of said change. (c) Where a different Loading Port other than those shown in this Article 10.5 is to be used, Seller shall promptly advise the Buyer in writing of the corresponding restrictions. 10.5.2 Buyer represents, warrants, and covenants, that each vessel used for loading Oil under this Agreement: (a) shall be owned or demised-chartered by a member in good standing of the International Vessel Owners Pollution Federation Limited, carry on board a certificate of insurance as described in the Civil Liability Convention for Oil Pollution Damage, issued to it by a signatory state, and comply with the International Safety Management (ISM) code; (b) shall be covered, without expense by Seller, by insurance protecting against any and all liabilities from pollution issued by a protection and indemnity club that is a member of the International Group of P & I Clubs and internationally recognized insurers in an amount not less than one billion U.S. Dollars (U.S.$1,000,000,000), or such greater amounts as may become available in the insurance market and generally obtained by prudent owners of similar vessels; no limit no limit 38 39.6 900 900

(c) shall have a policy on drug and alcohol abuse which meets or exceeds the standards in the Oil Company International Marine Forum Guidelines, dated June 1995, and take proper measures to ensure compliance therewith; and -18-

(d) shall comply with the International Code for Security of Ships and of Port Facilities ( ISPS Code ) and relevant amendments to Chapter XI of the International Convention for the Safety of Life at Sea, and similar laws and regulations pertaining to the security of ports, terminals and facilities ( Security Regulations ), and provide to Seller, prior to loading, a copy of the vessels International Ship Security Certificate according to the ISPS Code. 10.5.3 Buyer shall be responsible for any costs or expenses in respect of the vessel (including any demurrage, retention, delay or other charges, fees or duties) imposed at the Loadin g Port resulting from the vessel agents or vessels failure to comply with the Security Regulations or the imposition of special security measures, inspections or other actions by authorities at the Loading Port based on the vessels ten (10) prior ports of call, as established in the ISPS Code, and shall reimburse Seller for any such costs or expenses actually incurred by Seller. Notwithstanding any prior acceptance of the vessel by Seller, if at any time the vessel ceases to comply with the requirements of the ISPS Code, (a) Seller shall have the right not to berth the nominated vessel and any demurrage and all other expenses and losses of whatsoever nature arising from the vessels lack of compliance shall be for the account of Buyer, and (b) Buyer shall be obligated to substitute a vessel in compliance with the ISPS Code. 10.5.4 Seller shall procure that the Loading Port complies with the requirements of the Security Regulations. Prior to loading of the vessel, Seller shall provide Buyer with a copy of the International Port Security Certificate in accordance to the ISPS Code. Seller shall be responsible for any costs or expenses in respect of the vessel (including any demurrage, retention, delay or other charges, fees or duties) resulting from the failure of the Loading Port to comply with the Security Regulations, and shall reimburse Buyer for any such costs or expenses actually incurred by Buyer. 10.5.5 If the maritime security is affected by any event or circumstance, as defined in the ISPS Code, which is not imputable to either Party, and special security measures or actions are required to be taken by the port authorities or the vessel, any cost or expense for demurrage, retention or delay shall be shared equally by Buyer and Seller. Article 11 Loading Conditions; Demurrage 11.1 Berthing of Vessels; Commencement of Laytime . 11.1.1 Subject to the provisions of Articles 11.1.2 and 11.1.3, Seller shall provide a safe Loading Point at the Loading Port for each vessel designated in accordance with the provisions of Article 10, which Loading Point may be a berth, dock, anchorage, sea terminal, sea buoy mooring, submarine loading line or other place, including alongside lighters, or other vessels, at which the vessel may at all times lie safely afloat. In the event that a vessel arrives within its Agreed Laydays, then laytime and time on demurrage shall commence at the earlier of (a) six (6) hours after NOR or (b) when the vessel is All Fast; provided , however , that any NOR given within the last two (2) hours in which the Loading Port is open shall be deemed given when the Loading Port next opens. -19-

11.1.2 Seller shall not be obligated to provide a Loading Point for any vessel arriving after the last Day of its Agreed Laydays. Notwithstanding the foregoing, Seller shall make reasonable efforts to receive the vessel as soon as possible taking into account operational requirements and constraints. Regardless of whether such vessel is permitted to berth, Seller shall in no event be liable for demurrage, deadfreight or other charges in connection with the loading thereof. If such vessel is permitted to berth, laytime and time on demurrage shall commence at the commencement of loading. 11.1.3 Seller shall not be obligated to provide any vessel arriving prior to its Agreed Laydays with a Loading Point until the first Day of its Agreed Laydays. If Seller does provide a Loading Point prior to the first Day of its Agreed Laydays, then laytime and time on demurrage shall commence at the earlier of (a) six (6) hours after the Loading Port opens on the first Day of the Agreed Laydays for such vessel and (b) when the vessel is All Fast. 11.2 Shifting Loading Point of Vessels . Seller shall have the right to shift vessels at the Loading Point from one berth to another, provided that all expenses incurred in connection therewith shall be borne by Seller and all time expended in such shifting of vessels shall count as used laytime and time on demurrage. Notwithstanding the provisions of the preceding sentence, the expenses incurred in connection with a shifting of any vessel which is attributable to one of the events referred to in Article 11.4 shall be borne by Buyer, the time consumed during such shifting shall not count as used laytime or time on demurrage, and Seller shall not be obligated to provide such vessel with a Loading Point until a Loading Point becomes available, taking into account the priority of other vessels. 11.3 Allowed Laytime . Except as otherwise agreed in writing, Seller shall have an Allowed Laytime of thirtysix (36) hours to complete the loading of the quantity of Oil nominated and accepted. In the event that an Agreed Lifting Program provides for loading of Buyers vessel at two (2) Loading Ports or Seller notifies Buyer pursuant to Article 10.1.4 that loading shall be at two (2) Loading Points within the Specified Loading Port, the Allowed Laytime at each Loading Port shall be determined by reference to the quantity of Oil to be loaded at each Loading Port in accordance with Exhibit 2 . Used laytime or time on demurrage shall not commence at any Loading Port until six (6) hours after NOR is tendered at such Loading Port or when the vessel is All Fast, whichever occurs first. Used laytime and/or time on demurrage shall cease upon the disconnection of delivery hoses after the completion of loading at the relevant Loading Port; it being understood that the time consumed from the time at which delivery hoses are disconnected at the first Loading Port until the time that laytime and time on demurrage would commence at the second Loading Port pursuant to the provisions of Article 11.1 shall not be counted as used laytime or time on demurrage. Notwithstanding the foregoing, the Parties agree that used laytime and time on demurrage shall restart if Cargo documentation has not been delivered to the Buyers vessel within four (4) hours after disconnection of hoses. 11.4 Adjustments to Laytime and Time on Demurrage . In the event that the loading of any vessel is delayed, directly or indirectly, for any of the following reasons, whether occurring prior to, during or after the berthing or commencement of loading of the vessel: (a) lightering at Buyers request; -20-

(b) delay or suspension in loading attributable to Buyer, vessels agents, master, officers, crew, vessel owner or operator, or due to the failure of Buyer to comply with any provision of this Agreement; (c) more than one stoppage in loading as a result of instructions given by, or on behalf of, Buyer as to distribution of the Oil in the vessel; (d) any delay in loading as a result of the vessel not being in a seaworthy or cargoworthy condition or otherwise caused by the condition or facilities of the vessel, or any other reason attributable to or within the reasonable control of Buyer or the vessel; (e) failure of the vessel to have required documentation aboard; (f) bunkering (including time to connect or disconnect the bunkering hose) unless concurrent with loading so that no loss of time is involved; (g) restraint or interference in the vessels operation by any governmental authority in connection with the ownership, registration or obligations of the Buyer or the vessel, or in connection with stowaways or with smuggling or other prohibited activities; (h) time spent by the vessel shifting from a lightering or waiting area to the customary anchorage point or berth, even if lightering has taken place; or proceeding from the customary anchorage to the designated berth or Loading Point after it tenders NOR, calculated from the earlier of anchor aweigh or pilot on board and ending at All Fast; (i) regulations of the Loading Port operator, port authorities or the government (or any political subdivision or agency thereof) having jurisdiction over the Loading Port, including, but not limited to, regulations or decisions closing the Loading Port, prohibiting night traffic or berth maneuvering or prohibiting or restricting loading for any reason; (j) time required for a vessel to be granted free pratique or to receive customs, immigration or sanitary clearance; (k) inspection, gauging and measurement of vessel tanks or valves before, during and after loading; (l) bad weather, rough seas, fires or explosions; or (m) any of the events listed in Article 20.1 and not specifically listed above, or any other event of Force Majeure; then the amount of time during which the loading of such vessel is so delayed shall not count as laytime or time on demurrage; provided , however , that in the event the loading of any vessel is delayed due to bad weather or rough seas, then one-half the period of delay shall count as laytime or time on demurrage. Notwithstanding the foregoing, Seller will make reasonable efforts to berth vessels in their order of arrival in case of delay due to bad weather or Force Majeure. -21-

11.5 Demurrage . 11.5.1 Seller shall pay Buyer demurrage for any hour or part of an hour of laytime in excess of the Allowed Laytime for the vessel involved, at a rate equal to: (a) if the vessel is voyage-chartered, the rate specified in the charter party for the vessel (it being understood that Seller shall in no event be obligated to pay Buyer more demurrage than the amount of demurrage Buyer can demonstrate has actually been paid to the vessel owner in accordance with the terms of the charter party), or (b) if the vessel is owned by Buyer (or one of its Affiliates) or is under time charter, the demurrage assessment of a member of ASBA utilizing the nominated quantity, the route taken and the first Day of the Agreed Laydays. Buyer shall select the member of the ASBA to make such assessment and shall be solely responsible for all costs and expenses associated therewith. Notwithstanding the foregoing, to avoid administrative time and expenses, Buyer shall not make, and Seller shall not be obligated to pay, any claim for demurrage of less than one thousand U.S. Dollars (U.S.$1,000). The right of Buyer to demurrage pursuant to this Article 11.5 shall constitute Buyers exclusive remedy with respect to any failure of Seller to complete the loading of any vessel within the Allowed Laytime. 11.5.2 Buyer shall submit any claim for demurrage to Seller together with all pertinent supporting documentation within ninety (90) Days of the bill of lading date. The claim shall be submitted in the same manner as notices are required to be sent pursuant to Article 27, and shall consist of the following information and supporting documentation: (a) Buyers calculations of demurrage and the amount claimed in U.S. Dollars; (b) copies of the notices of ETA as stipulated in this Agreement and as advised by the vessel directly to Seller or by the vessel agent based upon vessel instructions to the agent; (c) copies of the NORs at the Loading Port(s); (d) copies of the statement of facts/time log of the port agent, the terminal representative attending the vessel at the Loading Port or the inspection company; (e) copies of all letters of protest issued by or to the master of the vessel; (f) if the vessel was voyage-chartered by Buyer, a copy of the fixture recap of the brokers fixture advice which reflects the demurrage rate, and a copy of the vessel owners demurrage invoice; and (g) if the vessel was owned or time-chartered by the Buyer, a copy of the demurrage assessment obtained pursuant to Article 11.5.1. Seller shall not be liable to Buyer in respect of (and Buyer shall be deemed to have waived) any claim for demurrage which is not made in accordance with this Article 11.5.2 within ninety (90) Days after the bill of lading date. -22-

11.6 Buyers Liability for Delay and Damage . 11.6.1 Buyer shall pay Seller its actual costs, expenses or damages (including demurrage charges payable to third parties) incurred for each hour or part thereof that loading is delayed due to any of the reasons specified in (a) through (h) of Article 11.4. 11.6.2 Each vessel shall clear berth as soon as loading is completed and the delivery hoses are disconnected. Buyer shall pay Seller its actual costs, expenses or damages (including demurrage charges payable to third parties) incurred for each hour or part thereof in excess of two (2) hours that the vessel remains in berth subsequent to completion of loading and disconnection of the delivery hoses. Notwithstanding the foregoing, Buyer shall not be liable for the costs set forth above for all time in excess of two (2) hours after hoses have been disconnected, if (a) the reason for Buyers vessel not vacating the berth is Sellers failure to deliver Cargo documents to Buyers vessel within such two (2) hour time period, or (b) such delay is the result of a Force Majeure event at the Loading Port or the berthing facilities. Notwithstanding the foregoing and the provisions of Article 19, if such delay is a result of the circumstances set forth in Article 11.4(l), then Buyer shall be liable for one-half of the expenses described above. 11.6.3 In the event that for any reason Buyers vessel causes damage to any facilities at the Loading Point and Seller is not timely compensated by the vessel causing the damage, then (a) Buyer shall reimburse Seller for the full cost of repair or replacement of such facilities without taking into account the depreciated value of such facilities, (b) any delay in loading the vessel as a result of such damage shall not be counted as used laytime or time on demurrage for such vessel, and (c) Buyer shall pay Seller its actual costs, expenses or damages (including demurrage charges to third parties) incurred for each hour or part thereof that any Loading Point may not be used as a result of such damage. Should any such damage occur, Buyer shall post such security for the payments provided in the preceding sentence as Seller may request; it being understood that Seller may detain the vessel at the Loading Port until such security shall have been posted. 11.6.4 Subsequent to the completion of loading and disconnection of the delivery hoses, and subject to the provisions set forth in Article 11.6.2 above, Buyers vessel shall be permitted to clear be rth if and only if Seller has delivered a full set of Cargo documents for the vessel; it being understood that early departure procedures (i.e., procedures allowing a vessel to clear berth while in possession of incomplete Cargo documents) shall not be allowed without the mutual consent of Buyer and Seller. Article 12 Quantity Measurements 12.1 Determination of Quantity . The volume of each loading of Oil shall be determined by an independent inspector selected as provided in Article 10.1.3, whose fees shall be shared equally by the Parties. Measuring and gauging shall be performed in accordance with one of the following measurement systems in decreasing order of preference, depending on the operational conditions prevailing at the Loading Port involved. Seller and Buyer or their respective representatives may witness the taking of the measurements. -23-

(a) Flow meters installed on loading lines: Such meter measurements shall be taken immediately before, during and after loading. When measurements are made with positive displacement meters, the meters and associated measurement testers will be installed, maintained and calibrated according to the latest revision of APIManual of Petroleum Measurement Standards ( API-MPMS ), Chapter 6.5, Metering Systems for Loading and Unloading Marine Bulk Carriers; Chapter 4.2, Conventional Pipe Provers; Chapter 4.8, Operation of Proving Systems; Chapter 7, Temperature Determination; and Chapter 5.2, Measurement of Liquid Hydrocarbons by Displacement Meters. If turbine meters are used, gauging will follow the latest revision of API-MPMS, Chapter 5.3, Measurement of Liquid Hydrocarbons by Turbine Meters, for the meters and measurement testers. Calculation of metered quantity shall follow API-MPMS, Chapter 12.2, Calculation of Liquid Petroleum Quantities measured by Turbine or Displacement Meters. (b) Shore tanks: Seller shall calibrate, or cause to be calibrated, the shore tanks on a periodic basis according to the latest revision of API-MPMS, Chapter 2. The measurement of tank contents shall be performed according to the latest revisions of API-MPMS, Chapter 3, Tank Gauging, and Chapter 7, Temperature Determination. The independent inspector shall ensure that all equipment used in the performance of this work is calibrated and in good working order. Volume calculations shall follow the latest revision of API-MPMS, Chapter 12.1, Calculation of Static Petroleum Quantities, Part 1, Upright Cylindrical Tanks and Marine Vessels. In the absence of methods contained in Article 12.1(a) or (b), discharge flow meters, or static shore tank measurements shall be utilized to measure the quantity of the Cargo. If neither of these methods is available, the quantity of the Cargo shall be determined by utilizing the methodology for Volume Measured on Board specified below in Article 12.1(c). (c) Volume measured on board: Volume measurements on board the vessel shall be made in accordance with the latest edition of the API-MPMS, Chapter 17, Marine Measurement and its subparts. The onboard quantity (including free water) measured prior to loading shall be deducted from the total observed volume measured after loading. Volume corrections in respect of temperature shall then be effected at 60F (equivalent to 15.56C) in accordance with the latest revision of ASTM D1250-80 or API-MPMS, Chapter 11.1, Volume Correction Factors at Sellers choice, thereby arriving at the gross standard volume. Such gross standard volume shall then be further corrected by dividing it by the current vessel experience factor, determined in accordance with the latest revision of API-MPMS, Chapter 17.9, Vessel Experience Factors. S & W, determined in the manner provided in Article 13.2, together with any increase in free water shall then be deducted from the volume determined above in order to arrive at the volume for purposes of the bill of lading and the invoice. 12.2 Volume Corrections for Temperature . Except in the case that quantity measurements are made pursuant to the provisions of Article 12.1(c), in which case temperature corrections shall be made in the manner and at the time specified in that Article, temperature readings shall be taken in accordance with the methods listed below in decreasing order of preference, depending on operational conditions prevailing at the Loading Port involved: (a) the flow-weighted average temperature taken at regular times during loading by Seller or its agents at flow meters; and (b) the temperature taken in shore tanks by Seller or its agent. Temperature corrections at 60F (equivalent to 15.56C) will then be effected for all volume determinations in accordance with ASTM-1250 or API MPMS, Chapter 11.1, at Sellers choice, provided that -24-

temperature corrections shall not be made in the case that volume is determined by way of flow meters pursuant to Article 12.1(a) and temperature compensators at 60F (equivalent to 15.56C) are integrated into the meter system. S & W, determined in the manner provided in Article 13.1(a), (b) or (c), as the case may be, and Article 13.2, shall be deducted from the volume corrected for temperature as provided above in order to arrive at the volume for purposes of the bill of lading and invoice. 12.3 Conclusiveness of Measurements . Quantity and temperature measurements witnessed by the independent inspector as provided in this Article 12 shall be final and binding on the Parties, except in the case of manifest error or fraud. In any event, without prejudice to the right of either Party to pursue a claim in accordance with Article 16, the determination of the independent inspector shall govern for purposes of the quantity stated in the bill of lading and the obligation of Buyer to make payment in accordance with the provisions of Article 8. Article 13 Quality 13.1 Determination of Quality . Sampling for quality of the Oil loaded in each shipment shall be witnessed by the independent inspector in accordance with the latest revision of API-MPMS, Chapter 8.2, Standard Practice for Automatic Sampling of Liquid Petroleum and Petroleum Products, or ASTM D-4177, at Sellers choice, where Oil is measured by flow metering, and API-MPMS, Chapter 8.1, Standard Practice for Manual Sampling of Petroleum and Petroleum Products, or ASTM D-4057, at Sellers choice, where Oil is measured by tank gauging. When the Oil is sampled at a tank, samples shall be taken and analyzed of the material in pipelines from the tank to the dock loading arms. Buyer and Seller or their representatives may witness the taking and testing of samples. Quality shall be determined by using the methods listed below in decreasing order of preference, depending on the operational conditions prevailing at the Loading Port involved: (a) from samples drawn from automatic samplers installed in the loading lines of each tank; (b) from samples drawn from the isolated storage shore tanks delivering the Oil; or (c) from a composite sample obtained in proportional parts from the vessels tanks. In all cases, equal quantities of Oil from each tank shall be drawn and mixed and equally filled in seven (7) containers of one Gallon each and finally sealed. Three (3) of such sealed containers shall be delivered to the local office of the Ministry at the Loading Port (or to the address notified by the Ministry), one shall be handed over to the master of the vessel and one (1) to the independent inspector, and two (2) shall be kept by Seller for ninety (90) Days after the date of the bill of lading. 13.2 Analysis of Samples . The independent inspector shall witness quality tests for sulfur, salt and Reid vapor pressure on the samples according to the latest revision of ASTM or API-MPMS procedures, at Sellers choice. Gravity tests on all Oil shall be made in accordance with the latest revision of API-MPMS, Chapter 9.1, or ASTM D1298-80, at Sellers choice. S & W shall be established in each case pursuant to the latest revision of ASTM D4377 or API Chapter 10-3, at Sellers choice, in tests witnessed by the independent inspector; it being understood that if the Oil is reconstituted crude oil, deduction for S & W shall be made only to the crude oil component of such Oil. Quality tests conducted in accordance with the above provisions shall be final and binding upon the Parties for invoicing purposes, but without prejudice to the right of either Party to pursue a claim. -25-

13.3 No Warranties . Seller makes no warranties regarding Oil and does not guarantee or warrant the suitability of Oil for any purpose whatsoever except that Seller warrants that (a) each grade of Oil sold and delivered under this Agreement shall meet the definition and typical specifications of each grade of Oil as set forth in Exhibit 1 to this Agreement and shall be typical of oil sold and delivered to Sellers other export customers, and (b) Seller has good and marketable title to all Oil sold to Buyer under this agreement. Except as provided in the preceding sentence, Buyer hereby releases Seller from any and all warranties whatsoever, including, without limitation, any implied warranties of merchantability or fitness for a particular purpose. Article 14 Delivery 14.1 Passage of Title . Delivery of the Oil shall be made in bulk to Buyer FOB the applicable Loading Port to vessels to be provided by Buyer. Delivery shall be deemed completed when the Oil passes the permanent flange connection of the delivery hose at the Loading Port. At that point, Sellers responsibility with respect to the Oil shall cease, and title to and all risk of loss of or damage to, and deterioration or evaporation of, the Oil so delivered shall pass to, and be assumed by, Buyer. Any loss of or damage to Oil or any property of Seller or of any other person during loading which is in any way attributable to the vessel or its officers or crew shall be borne by Buyer. 14.2 Port and Loading Expenses . All expenses ashore pertaining to the pumping of the Oil from shore tanks to vessels shall be borne by Seller, including, but not limited to, wharfage, dockage and quay dues (if any) at the Loading Port. Seller shall pay all export taxes or duties imposed by the government (or any political subdivision or taxing authority thereof) having jurisdiction over the Loading Port from which the Oil is deemed to have been exported. All other expenses pertaining to the loading of any vessel, including, without limitation, all vessel agency fees, anchorage, tonnage, towage, pilotage, customs, consular, entrance, clearance and quarantine fees, port dues and all charges and expenses relating to berthing and unberthing of vessels, shall be borne by Buyer. 14.3 Loading Port Regulations . All laws, rules and regulations now or hereafter in existence relating to operations at the Loading Ports shall apply to all vessels provided by Buyer, including, without limitation, any regulations relating to (a) the prevention and control of fires and water pollution and (b) lead-free and segregated or clean ballast. Buyer shall reimburse Seller or its agent for any expenses they may incur as a result of the noncompliance by any such vessel with any such applicable law, rule or regulation, including, without limitation, any expenses incurred by Seller or its agent in connection with the extinguishing of fires, the repair of damage caused thereby, the cleaning-up of water pollution and the payment of any charges assessed by the government (or any political subdivision

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