NO X CONFORMITY OF PRODUCTION PROCEDURE 2002 V07. Lloyd's Register of Shipping, 71 Fenchurch Street, London EC3M 4BS, UK

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1 NO X CONFORMITY OF PRODUCTION PROCEDURE 2002 V07 Lloyd's Register of Shipping, 71 Fenchurch Street, London EC3M 4BS, UK

2 TERMS AND CONDITIONS The following terms and conditions apply to all services provided by any entity that is part of the LR Group as hereinafter defined: 1. In these terms and conditions: (i) Services means any and all services provided to the Client by Lloyd s Register of Shipping ( LR ), or any entity that is part of the LR Group, as hereinafter defined, including any classification of the Client s vessel, equipment or machinery; (ii) the Contract means any agreement for supply of the Services, such as a request for services or any other document or agreement relating to the providing of Services; and (iii) the LR Group means LR, its affiliates and subsidiaries, and the officers, directors, employees, representatives and agents of any of them, individually or collectively. 2. Any damage, defect, breakdown, or grounding that could invalidate the conditions for which a class has been assigned, must be reported without delay. 3. If the Client requires classification services relating to vessels, machinery, or equipment classed by LR in a jurisdiction in which LR itself does not do business (including without limitation Brazil, Canada, Greece, and the United States of America), the Client hereby acknowledges and agrees that these services will be performed by a subsidiary of LR that is part of the LR Group and that is authorised to conduct classification surveys and issue certificates on the vessel, machinery, or equipment, or by another person or entity that has been approved by LR to perform the services. If classification services are performed by an entity other than LR in accordance with this paragraph 2, the survey reports and certificates issued by that entity will be submitted to LR for acceptance. LR will accept for classification purposes a survey or certificate issued by any LR Group entity. or contributed to the issuance of any certificate, statement, data, or report containing the information or advice. Nothing in these Terms and Conditions creates rights in favour of any person who is not a party to the Contract with an LR Group entity. 8. Any dispute, claim, or litigation between LR and the Client arising from or in connection with the Services provided by LR or any Contract with LR shall be subject to the exclusive jurisdiction of the English courts and will be governed by English law. 9. Any dispute, claim or litigation between the Client and any entity in the LR Group that performs services as provided for in Paragraph 3 shall be subject to the jurisdiction of the courts in the jurisdiction in which that LR Group entity is located and will be governed by English law, including the provisions on the recovery of legal costs. Notwithstanding the foregoing, if the Client asserts or initiates any dispute, claim or litigation against an entity in the LR Group in any proceeding in which LR is also named as a party or that arises in whole or in part from the subject matter of a dispute, claim or proceeding that also has been asserted or initiated against LR, that dispute, claim or proceeding shall be subject to the exclusive jurisdiction of the English courts. 4. In providing services, information, or advice, the LR Group does not warrant the accuracy of any information or advice supplied. Except as set out in these Terms and Conditions, the LR Group will not be liable for any loss, damage, or expense sustained by any person and caused by any act, omission, error, negligence, or strict liability of any of the LR Group or caused by any inaccuracy in any information or advice given in any way by or on behalf of the LR Group even if held to amount to a breach of warranty. 5. Nevertheless, if the Client uses the LR Group s services or relies on any information or advice given by or on behalf of the LR Group and as a result suffers loss, damage, or expense that is proved to have been caused by any negligent act, omission, or error of the LR Group or any negligent inaccuracy in information or advice given by or on behalf of the LR Group, then the LR Group entity providing the service, information, or advice will pay compensation to the Client for its proved loss up to but not exceeding the amount of the fee (if any) charged by the LR Group entity for that particular service, information, or advice. 6. Notwithstanding the previous clause, the LR Group will not be liable for any loss of profit, loss of contract, loss of user, or any indirect or consequential loss, damage, or expense sustained by any person caused by any act, omission, or error or caused by any inaccuracy in any information or advice given in any way by or on behalf of the LR Group. 7. No LR Group entity will be liable or responsible in negligence or otherwise to any person not a party to the agreement pursuant to which any certificate, statement, data, or report is issued by an LR Group entity for (i) any information or advice expressly or impliedly given by an LR Group entity, (ii) any omission or inaccuracy in any information or advice given, or (iii) any act or omission that caused Lloyd's Register of Shipping 71 Fenchurch Street, London EC3M 4BS, UK Telephone +44 (0) : Fax +44 (0) Web site: LLOYD'S REGISTER OF SHIPPING, ALL RIGHTS RESERVED

3 CONTENTS Paragraph Topic Page Conformity of Production Procedure 1 Introduction 4 2 General 4 3 Series Produced Engines COP Verification 5 4 Conformity of Production Verification using a Quality Scheme General Requirements LR Quality Scheme Requirements Alternative to LR Quality Scheme Requirements 8-9 Appendix I Typical NOx Sensitive Components 10 Appendix II Certification of Series Engines - Flow Diagrams 11 Diagram 1 Individual Inspection Route 11 Diagram 2 Quality Scheme Route 12 Attachments Contents 13 NOx Verification of Conformity Report 14 Form QA 027 (04/2001) Certification for NOx Emission Compliant marine oil engines manufactured under the LR Quality Assurance Scheme for Machinery + Terms and Conditions Lloyd's Register of Shipping 3 of 16

4 CONFORMITY OF PRODUCTION (COP) - PROCEDURE 1 INTRODUCTION. 1.1 This document is to be read in conjunction with MARPOL 73/78 Annex VI and the NOx Technical Code. 1.2 The NOx Technical Code requires manufacturers to submit for approval their production control procedure for the manufacture of NOx compliant, serially produced, group or family engines. Reference Sections 4.3.7, and of the NOx Technical Code. 1.3 Where an engine is certified as a Parent of a family or group of engines, subsequent produced engines are required to be assembled using identical NOx sensitive components and within the same operating parameters as those fitted in the certified engine. This shall be detailed in the NOx Technical File to allow an EIAPP (Engine International Pollution Prevention) certificate to be issued without further NOx emission testing. 1.4 The production control procedure should be in place before component manufacture commences to ensure each engine is to the same design as the Parent, i.e. with the correct NOx sensitive components and settings. 1.5 The local LR surveyor verifies the effective implementation of the COP (Conformity of Production) procedure through monitoring of the components during production and confirms their assembly into the final engine. On completion, the local surveyor issues a "Verification of Conformity Report" for each satisfactory engine or series of engines. (See Attachments) 1.6 For main and auxiliary engines, this monitoring can be incorporated as part of the normal classification inspection and testing procedure. 1.7 However, for the smaller massed produced engines, where the weekly /monthly volume warrants, the monitoring may be based on an LR approved production quality scheme, as an alternative to direct survey. 2 GENERAL 2.1 The engine manufacturer must submit details of his Conformity of Production (COP) procedures for the manufacture of the NOx sensitive components for LR's review and approval before manufacturing series engines. (See NOx Technical Code & Appendix I) 2.2 The COP procedure should address the design, process implemented to maintain the control of the issue of related drawings, uniformity of the product's materials and dimensions, inspection and testing, the identification marking, engine assembly using compliant components and engine settings. 2.3 The system must ensure: the uniform manufacture of the NOx sensitive components, including inspection and testing where required the traceability of the NOx sensitive components to those used in the Parent engine, as identified in the approved Technical File that final engine adjustments and settings are within the limits provided in the approved Technical File the correct distribution of approved design drawings and subsequent approved modifications to components or settings the assembly of the component parts into the completed engine(s) are conducted in accordance with the manufacturer's production procedures to maintain NOx compliance. 2.4 The COP procedure should in general be generic and suitable for all the engine types manufactured at the works. Since specific details are contained in the Approved Technical File and Approved Lloyd's Register of Shipping 4 of 16

5 Drawings, existing procedures may be used with minimal modification to cover NOx requirements. 2.5 All the elements, requirements and provisions adopted by the manufacturer to ensure Conformity of Production shall be documented in a systemic and orderly manner in the form of written procedures and instructions. Where the procedures are or form part of an other document, a reference to these may be made in the COP document. the manufacturing/quality plan to carry out the necessary verification inspection and testing during manufacture, assembly and testing. 3.4 The attending surveyor shall ensure the following are complied with during verification monitoring The NOx sensitive components, identified in the approved Technical File, of the Parent engine are correctly manufactured and fitted on engines within the Family or Group. 2.6 Changes to NOx sensitive components, engine settings, operational parameters or the manufacturing process are to be submitted for approval and confirmation to maintain the validity of the approval and Technical File. 3 SERIES PRODUCED ENGINES COP VERIFICATION. 3.1 These procedures ensure that series produced engines, under the Family and Group concept, are constructed under an approved production system, with final product inspection and verification. 3.2 The manufacturer is to submit an application to the local LR office for the verification of the engines providing the following minimum information The intended manufacturing schedule Engine Type, model and Serial Number(s) Details of the Parent engine, its approved Technical File number and date Conformity of Production procedure approval number and date The marking of the NO X sensitive components (reference of the Code) is correct and uniquely identified in accordance with the approved data Where modifications to components and or settings have been carried out that these have been approved and are included as amendments to the Technical File The manufacture and assembly of the NOx sensitive components into the completed engine(s) are conducted in accordance with the manufacturer s production procedures The final engine settings and parameters are within the limits identified in the approved Technical File. 3.5 On satisfactory completion the surveyor prepares and submits a Verification of Conformity Report (See Attachments) 3.6 A copy of the Verification of Conformity Report is submitted with the NOx Technical File for approval and issue of the pre-certification NOx Certification (EIAPP) Intended new building or ship name and IMO number, where known Flag Administration, if known. 3.3 The surveyor will attend in accordance with the agreed hold points on Lloyd's Register of Shipping 5 of 16

6 4 CONFORMITY OF PRODUCTION (COP) VERIFICATION USING A QUALITY SCHEME 4.1 GENERAL REQUIREMENTS For mass produced engines having a bore not exceeding 300 mm, where individual inspection is not viable, a suitable LR approved quality scheme may be considered for the COP verification The LR Quality Scheme for Machinery defines minimum requirements acceptable to LR for mass produced engines to which the NOx requirements are incorporated as additional items. Ref. LR Rules and Regulations for Classification of Ships, Part 5, Chapter 1, Section The scheme is a survey procedure based on quality assurance concepts as an equivalent to the direct survey of individual NOx sensitive components, utilising: Initial, intermediate and renewal system related audits, and regular and systematic visits by the attending surveyor to verify : component manufacture, engine final assembly and the implementation of the associated quality control procedures, in accordance with the parameters in the approved engine's Technical File, Once the manufacturing and quality control procedures are assessed and found satisfactory, the manufacturer is authorised to issue the "Certification for NOx emission compliant marine oil engines manufactured under the LR Quality Scheme for Machinery" (Form QA- 027) for approved NOx compliant engines. Note: this is not an EIAPP certificate Engines manufactured under the LR Quality Scheme require to be issued with an individual EIAPP certificate for compliance with MARPOL 73/78, Annex VI in accordance with Flag Administration requirements Where an EIAPP certificate is required for engines released under the scheme, (i.e. auxiliary generating sets, engine driven pumps, etc. intended for ships of 400 gross tonnage or above required to comply with SOLAS), an application is to be made to LR with the relevant documentation (i.e. Technical File & Quality Scheme for Machinery NOx emission Certificate) The individual EIAPP certificate will only be issued after an engine survey to verify the NOx components and settings remain as recorded in the approved Technical File The manufacturer's procedures to ensure Conformity of Production in accordance with the NOx Technical Code may be either incorporated into the LR Scheme for Machinery procedures or remain as an separate document, e.g. Quality programme The Client's Quality System must contain in particular, an adequate description of: commitment to the LR NOx Quality Scheme, the quality objectives, the organisational structure and the responsibilities and powers of the management with regard to product quality the examinations and tests that will be carried out during manufacture to maintain conformity the means to monitor the effective operation of the quality system the quality records, such as inspection reports, test data, calibration data, qualification reports of the personnel concerned, register of marine engines manufactured under the LR Quality Scheme, etc LR will review the manufacturer s production quality system documentation and assess it to ensure the scheme requirements are met and that series manufactured engines will remain in Lloyd's Register of Shipping 6 of 16

7 conformity with the approved Parent engine and its Technical File. regular and systematic visits in accordance with Random inspection and tests on components under manufacture at the time of visit may be witnessed by LR where considered necessary to verify the effectiveness of the client's quality system The manufacturer shall allow LR access for assessing the effective operation of the Quality Management System and to the locations of manufacture, inspection, testing, and storage and shall provide all necessary information required for LR to carry out their duties The manufacturer shall keep LR fully informed of any intended updating of the quality system. These shall be evaluated to decide if the amended quality system will still satisfy the LR NOx Quality Scheme requirements or whether re-assessment is required LR shall provide audit or visit reports to the manufacturer Should a Quality Management System be cancelled or if during an audit a lack of confidence in the quality system occurs, LR reserves the right to conduct a full quality audit or revert to verification by direct survey Where a manufacturer has an equivalent IACS Member Quality Scheme for Machinery in operation, details may be submitted for consideration After review, those found acceptable will be subject to an initial verification audit before final acceptance by LR LR will confirm the system's satisfactory operation and that it remains acceptable through conducting annual surveillance visits , If the equivalent Quality Scheme for Machinery does not address the additional NOx Quality Scheme requirements, LR will carry out the Where the system is found unsatisfactory, LR reserves the right to carry out audits in accordance with the LR Quality Scheme and this document to verify compliance with the requirements NOx Technical Code A record of the NOx compliant engines certified under the LR Quality Scheme is to be submitted on a monthly basis. 4.2 LR QUALITY SCHEME REQUIREMENTS The following requirements are to be addressed in the quality documentation, which are additional to those specified in the LR Rules for the Quality Scheme for Machinery The requirements referenced in sections 2.3, and above The Control for the issue of; the "Certification for NOx emission compliant marine oil engines manufactured under the LR Quality Scheme for Machinery" (Form QA-027), copies of the Parent NOx Certificate, and approved Technical File The register of engines built in compliance with the NOx Technical Code should contain as a minimum the information specified in paragraph The attending surveyor/auditor will cover during his regular and systematic audits the requirements listed in 2.3 and 3.4 above Maintain a list of personnel authorised to sign the "Certification for NOx emission compliant marine oil engines manufactured under the LR Quality Scheme for Machinery", Lloyd's Register of Shipping 7 of 16

8 4.2.2 The Conformity of Production requirements will be addressed during the regular and systematic audits as follows Review the production documentation including test results as relevant. The documentation is to be verified by selective sampling of production in progress at the time of visit. The timing of visits should be programmed to ensure all manufacturing aspects are covered Review of engine documentation and certification completed since last visit. The documentation and certification format and contents may be checked on a selective random basis Parent engine Technical File approval number and date To maintain the approval, the arrangements authorised at each works are to be kept under review by the Surveyors in order to ensure that the approved procedures for manufacture and quality control are being maintained in a satisfactory manner. This is to be carried out by: Regular and systematic surveillance, Intermediate audits at intervals of six months, (yearly where an equivalent system is accepted), Review and verification of the standard certificates (Form QA_027) issued by the manufacturer under the LR Quality Scheme for Machinery for NOx Emissions Where the implementation of the procedures are deficient, this is to be documented along with the proposed corrective action. The effectiveness of the corrective actions are to be verified during follow-up visits A report of the findings will be issued after each visit to the client with a copy to the Scheme Administrator The monitoring periods will be the same as for the Machinery Scheme provided visits are carried out within a three month period The register (see ) of the marine engines certified under the LR NOx Quality Scheme, should contain the following minimum information and a copy submitted monthly to the local office engine type, model and serial number month and year of manufacture Parent engine details Triennial re-assessment of the entire quality system. 4.3 ALTERNATIVE TO LR QUALITY SCHEME REQUIREMENTS Where a manufacturer implements an alternative IACS Member's Quality Scheme for Machinery (MQS) which he wishes LR to consider, the following details of the alternative scheme are to be submitted Evidence that the approved MQS fulfils the requirements and covers the production of the approved engines Evidence that the MQS in operation satisfies the requirements for the Conformity of Production for NOx certified engines Documentation as appropriate, related to the surveillance visits by the IACS Member confirming satisfactory operation of the scheme Where necessary, evidence that sub-contractors are covered within the certified scheme Evidence that classification society Rules/Regulations are included in the scope of the approved MQS. Lloyd's Register of Shipping 8 of 16

9 Copy of the MQS certificate including the scope of certification. reverting to direct survey until the corrective is implemented Copy of the company Policy or Mission Statement or Quality Programme giving details of commitment, objectives, etc The manufacturer s implemented quality system must be documented in a systematic and orderly manner in the form of written policies, procedures and instructions addressing the production of the product and its final inspection and testing The manufacturer shall undertake to fulfil the obligations arising out of the IACS Member's approved Quality System and to uphold it so that it remains adequate The IACS Member's reports on the Scheme's operation including any noncompliance issued and surveillance audit reports will be reviewed to confirm that comments will not affect the conformity of the NOx certified engines during manufacture Where the NOx compliance is affected, corrective actions are to be implemented and verified to the satisfaction of LR. This may include Annual surveillance audits will be made by LR to ensure the manufacturer is maintaining and fulfilling the obligations arising out of the approved quality system To maintain the approval, the arrangements authorised at each works are to be kept under review by the Surveyors in order to ensure that the approved procedures for manufacture and quality control are being maintained in a satisfactory manner. This is to be carried out by: Regular and systematic surveillance by the IACS Member, Intermediate audits by LR at intervals of one year, Triennial re-assessment of the entire quality system by the IACS Member and verified by LR in accordance with above The information required by is to be submitted to LR on a monthly basis. Lloyd's Register of Shipping 9 of 16

10 APPENDIX I TYPICAL NOx SENSITIVE COMPONENTS 1 NOX sensitive components are considered to include, but not be limited to 1.1 combustion chamber e.g. piston crown profile, cylinder head configuration 1.2 piston and connecting rod e.g. distance pieces changing swept volume/compression ratio, piston ring configuration 1.3 turbo-charger build, type and capacity e.g. compressor wheel, diffuser design, nozzle ring, turbine rotor 1.4 charge air cooler model and specification 1.5 fuel injectors and injection systems e.g. injection nozzle, injection pump 1.6 injection timing, measured according to service instructions 1.7 fuel rack position 1.8 Engine control system and operational settings 1.9 Any NOx reduction device fitted 2 Provision should be made to uniquely identify NOx sensitive components that have been modified, due to technical development or design change 3 Details of any NOx sensitive component modifications should be submitted to LR for approval to ensure that the inclusion of new/modified components should not adversely affect NOX levels. The amended Technical File is to be approved and issued for subsequent engines in the series Lloyd's Register of Shipping 10 of 16

11 Appendix II (Diagram 1) CERTIFICATION OF SERIES ENGINES - Individual Inspection Route Parent Engine Technical File (TF) Approved Client Manufacturer submits request for certification with production schedule and conformity of Production Procedure (COP) COP Approved, stamped and returned Client LR advises FEE for acceptance Client Individual Inspection Hold Points Advised NOx Quality Scheme See Appendix II Diagram 2 Surveyor inspects Components during manufacture Verify Engine Assembly, test as appropriate NOx Verification of Conformity report issued and submitted with Engine TF Client * TF verified, stamped and EIAPP issued Lloyd's Register of Shipping 11 of 16

12 Appendix II (Diagram 2) CERTIFICATION OF SERIES ENGINES - Quality Scheme Route Parent Engine Technical File (TF) Approved Manufacturer Submits request for certification with production schedule and Conformity of Production (COP) COP Approved, stamped and returned LR advises fee for acceptance Individual Inspection See Dia. 1 NOx Quality Scheme Initial Audit Intermediate Audits Regular systematic surveillance Renewal Audit Engine Delivered with LR NOx Quality Certificate, Parent NOx EIAPP & Technical File No action required NO EIAPP Certificate Required? YES TF Submitted to LR Individual Engine Verification Survey Report* *This survey may be carried out at the engine works or on board the delivery vessel, but must be carried out before the engine can be issued with an EIAPP Certificate. TF verified, stamped and EIAPP Certificate Lloyd's Register of Shipping 12 of 16

13 Attachment I Contents Copies of the following NOx Verification of Conformity Report Rev 02 Certification for NOx emission compliant marine oil engines manufactured under the LR Quality Scheme for Machinery (with Terms and Conditions) (04/2001) 1 page 3 Pages : Lloyd's Register of Shipping 13 of 16

14 NOx VERIFICATION OF CONFORMITY REPORT Series Produced Marine Diesel Engines Compliance with NOx Emission Limits Office: Date: Report No. This is to certify that the following Marine Diesel Engine(s) components and markings were verified as complying with those detailed in the approved Parent Engine Technical File during manufacture and assembly. Engine Type : Serial No(s) : Date of Manufacture : Parent Engine Type : Parent Engine Technical File Approval No. and Date : Conformity of Production (COP) Approval number and date New Building No. or Ship : : Flag Administration : Comments/Remarks Surveyor to Lloyd s Register Lloyd's Register of Shipping 14 of 16

15 Certification for NOx emission compliant marine oil engines manufactured under the LR Quality Scheme for Machinery This is to Certify that the marine oil engine described in the attached NOx Parent Certificate and Technical File has been found by Lloyd s Register to be a series produced engine assembled with NOx compliant components constructed in accordance with the Approved Parent Engine Technical File. Lloyd s Register has found the engine was manufactured in accordance with the Approved Conformity of Production Procedure and under the current Lloyd s Register Rules and Regulations, Quality Scheme for Machinery. Lloyd s Register certifies that the manufacturer s Quality Assurance and manufacturing procedures are being kept under review by regular auditing of the approved manufacturing and quality control procedures. LR Quality Scheme for Machinery Certificate Number: Approved Parent Technical File Approval Number: Parent Engine Designation Engine Family: This certificate is issued by the manufacturer in accordance with the arrangements authorised by Lloyd s Register in the Quality Scheme approval For Engine Serial number(s): (Overtype Manufacturer s Name and address) This engine is to be installed and maintained in accordance with the manufacturer s instructions for NOx Emission Compliant Diesel Engines. Authorised Signatory Date This document is subject to the terms and conditions overleaf FORM QA 027 (04/2001) PAGE 15 OF 16

16 TERMS AND CONDITIONS The following terms and conditions apply to all services provided by any entity that is part of the LR Group as hereinafter defined: 10. In these terms and conditions: (i) Services means any and all services provided to the Client by Lloyd s Register of Shipping ( LR ), or any entity that is part of the LR Group, as hereinafter defined, including any classification of the Client s vessel, equipment or machinery; (ii) the Contract means any agreement for supply of the Services, such as a request for services or any other document or agreement relating to the providing of Services; and (iii) the LR Group means LR, its affiliates and subsidiaries, and the officers, directors, employees, representatives and agents of any of them, individually or collectively. 11. Any damage, defect, breakdown, or grounding that could invalidate the conditions for which a class has been assigned, must be reported without delay. 12. If the Client requires classification services relating to vessels, machinery, or equipment classed by LR in a jurisdiction in which LR itself does not do business (including without limitation Brazil, Canada, Greece, and the United States of America), the Client hereby acknowledges and agrees that these services will be performed by a subsidiary of LR that is part of the LR Group and that is authorised to conduct classification surveys and issue certificates on the vessel, machinery, or equipment, or by another person or entity that has been approved by LR to perform the services. If classification services are performed by an entity other than LR in accordance with this paragraph 2, the survey reports and certificates issued by that entity will be submitted to LR for acceptance. LR will accept for classification purposes a survey or certificate issued by any LR Group entity. 13. In providing services, information, or advice, the LR Group does not warrant the accuracy of any information or advice supplied. Except as set out in these Terms and Conditions, the LR Group will not be liable for any loss, damage, or expense sustained by any person and caused by any act, omission, error, negligence, or strict liability of any of the LR Group or caused by any inaccuracy in any information or advice given in any way by or on behalf of the LR Group even if held to amount to a breach of warranty. 14. Nevertheless, if the Client uses the LR Group s services or relies on any information or advice given by or on behalf of the LR Group and as a result suffers loss, damage, or expense that is proved to have been caused by any negligent act, omission, or error of the LR Group or any negligent inaccuracy in information or advice given by or on behalf of the LR Group, then the LR Group entity providing the service, information, or advice will pay compensation to the Client for its proved loss up to but not exceeding the amount of the fee (if any) charged by the LR Group entity for that particular service, information, or advice. 15. Notwithstanding the previous clause, the LR Group will not be liable for any loss of profit, loss of contract, loss of user, or any indirect or consequential loss, damage, or expense sustained by any person caused by any act, omission, or error or caused by any inaccuracy in any information or advice given in any way by or on behalf of the LR Group. 16. No LR Group entity will be liable or responsible in negligence or otherwise to any person not a party to the agreement pursuant to which any certificate, statement, data, or report is issued by an LR Group entity for (i) any information or advice expressly or impliedly given by an LR Group entity, (ii) any omission or inaccuracy in any information or advice given, or (iii) any act or omission that caused or contributed to the issuance of any certificate, statement, data, or report containing the information or advice. Nothing in these Terms and Conditions creates rights in favour of any person who is not a party to the Contract with an LR Group entity. 17. Any dispute, claim, or litigation between LR and the Client arising from or in connection with the Services provided by LR or any Contract with LR shall be subject to the exclusive jurisdiction of the English courts and will be governed by English law. 18. Any dispute, claim or litigation between the Client and any entity in the LR Group that performs services as provided for in Paragraph 3 shall be subject to the jurisdiction of the courts in the jurisdiction in which that LR Group entity is located and will be governed by English law, including the provisions on the recovery of legal costs. Notwithstanding the foregoing, if the Client asserts or initiates any dispute, claim or litigation against an entity in the LR Group in any proceeding in which LR is also named as a party or that arises in whole or in part from the subject matter of a dispute, claim or proceeding that also has been asserted or initiated against LR, that dispute, claim or proceeding shall be subject to the exclusive jurisdiction of the English courts. Lloyd's Register of Shipping 71 Fenchurch Street, London EC3M 4BS, UK Telephone +44 (0) : Fax +44 (0) Web site: FORM QA 027 (12/1999) PAGE 16 OF 16