SOUTH HOOK LNG TERMINAL COMPANY LTD.

Standard payment terms are 30 days from the receipt of a valid VAT invoice from the supplier, provided that there is no dispute over such invoice.

Save for limited exceptions, invoices must state the relevant purchase order number, the Supplier’s full name, registration details, bank account details along with wire transfer instructions, a description of the services or goods supplied, and shall provide such evidence as may be required to enable the South Hook to approve payment of such invoice (e.g.
timesheets).

South Hook may set off amounts owing to it from the supplier where it has the right to do so.

In the case of a disputed invoice, payment will not be made unless and until such dispute has been resolved to South Hook’s satisfaction.
Any undisputed invoice that remains unpaid at the due date will bear interest from the due date until payment is made in full at 2 per cent per annum over Citi Bank base rate.

South Hook aims to settle any disputes amicably to the extent possible and without detriment to either company. In instances where an invoice includes an element of undisputed charges, South Hook works with the Supplier to agree partial payment of the invoice for these amounts.
In such instances, the Supplier shall submit a full credit note for the disputed invoice and shall re-issue a new invoice setting out only the part of the original invoice that is undisputed.

The following steps are taken in the event of a dispute:
• The nominated South Hook Contract Manager will inform Procurement and Finance Departments immediately to place the invoice on hold.
• Procurement will validate the cause of dispute and advise the Contract Manager on an appropriate course of action.
• Finance will advise the Supplier Accounts Receivable Department that the payment terms shall be suspended whilst Procurement liaise with the Supplier contract representative.
• Once the invoice dispute is resolved, the Contract Manager/ Procurement Department will inform the Finance Department of the agreed resolution and how the disputed invoice should be dealt with (e.g. payment of the invoice, or credit note and revised invoice to be issued).