Commodities Trading Procedures

The following procedure is to be followed in all commodities trading transactions and is non-negotiable. 1. Preliminary Procedures 1. NCNDA is signed by parties involved. D2/JP NCND/IMFPA from BUYER sent to SELLER. MANDATE /PAYMASTERS primary to closing of order allowed. All others on IMFPA are beneficiaries under the PAYMASTER. SELLER demands this presentation or will refuse to process order. Cement Portland Direct LLC is facilitator to sellers and will help present the NCND/IMFPA the right way so your order is processed. 2. BUYER / BUYERS MANDATE issues LOI or ICPO with quantity demanded, target price, contract length, banking information, and all other details involved freshly dated and signed. For D2/JP orders SELLER will give name for ICPO to be sent from BUYER. 3. SELLER / SELLERs MANDATE issues SOFT CORPORATE OFFER freshly dated and signed. (This step is usually skipped so there is faster processing allowed.) 3/4 skipped. 4. SELLER issues FCO to BUYER (via MANDATEs) - freshly dated and signed. selects one of the available payment options and returns it to SELLER / SELLERs MANDATE along with a BCL (or similar banking contribution) within the documents validity deadline. 5. BUYER returns FCO signed (on each page) and returns it with BANK ENDORSEMENT to SELLER / SELLERs MANDATE freshly dated and within the documents validity deadline. 6. SELLER issues DRAFT CONTRACT to Buyer (via SELLERs MANDATE) freshly dated and signed 7. Top Table Meeting (TTM) might be arranged 8. SELLER and BUYER sign CONTRACT

2. Contract Procedures 1. Within X-international banking days from receipt of the Sales Agreement by the Buyer, the Buyer signs, seals and stamps the Sales Agreement, and return it to Seller for his signature, sealing and stamping. 2. Within X-international banking days from receipt of the Agreement from Buyer, duly signed, sealed and stamped by the

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Buyer, the Seller signs, seals and stamps the Agreement and issues to the Buyer an AFFIDAVIT (containing product allocation number) as per previous Agreements. Within X-international banking days of signing and exchanging the Sales Agreement and from receipt of the AFFIDAVIT from Seller to Buyer, the Buyers Bank issues in favour of the Seller the agreed Financial Instrument/s to the agreed value. The Financial Instrument is issued, confirmed and guaranteed by a bank acceptable to Seller, in accordance with the Agreement. Within X-international banking days of signing and exchanging this Agreement and from receipt of the Financial Instrument in accordance with this Agreement, Sellers Bank issues to Buyers Bank the Proof of Product (by SWIFT MT 799). Within X-international banking days of the receipt, verification and authentication of Buyers Financial Instrument at Sellers bank, the Seller issues a X% Performance Bond of the value of the Financial Instrument. The initial shipment of X/mt (or XX/mt or XXX/mt) product loads within from the date of receipt, verification and authentication of Buyers Financial Instrument/s for total funds of US$ XXXX (XXXX United States Dollars) at Sellers bank, and continues until the Agreement quantity is shipped and delivered. Payment will be released to the Seller upon negotiation of shipping documents at the Sellers bank. Partial shipments are/are not allowed. Within XX-days of Buyer and Seller signing the Agreement, the Buyer advises the Seller in writing the particulars of the discharge ports relevant to the Agreement.

Definitions
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NCNDA Non Circumvention Non Disclosure Agreement Agreement through which the parties agree not to disclose information nor to circumvent each other in a trading transaction. IMFPA Document that is usually combined with NCND. IMFPA is filled out when there is a contract and buyer and seller sign and agree to commissions involved with mandate and agents. Only primary to the contract/paymasters are listed on IMFPA. All others are beneficiaries under the paymaster and have sub fee agreements or referral fee agreements with paymaster. Funds are sent to the beneificaries bank swift by paymaster bank. Paymaster may issue 1099 to beneificairies. Seller's will not accept orders

IMFPA that have more that paymasters listed and cancel order. Lay out needs to be : Mandate Group & assigns Group 2 and assigns/beneficiaries Group 3 and assignes (left blank for sellers on buy side)
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LOI Letter of Intent or Letter of Interest Letter on buyers or buyer mandates letterhead, specifying the requirements of a buyer with regards to product specifications, quantity, packaging, target price, delivery and payment terms, time validity. SCO Soft Corporate Offer Non-binding offer by Seller or Sellers Mandate, in response to request in LOI. ICPO Irrevocable Corporate Purchase Order Order on Buyers company letterhead in response to Soft Offer. ICPO is somewhat binding as it represents a firm order in case all requirements (product, quality, quantity, price, packing, payment and delivery terms) are accepted by the Seller. L/C (or LC) Letter of Credit In very loose terms: Financial instrument by which a buyers bank commits to payment in favor of a seller if and when certain conditions are met (usually if loading documents and product spec. certification at loading port is compliant to agreed terms). L/Cs take on different forms and variations and various mechanisms can be in place even in a single L/C (LCs can be Revocable, Irrevocable, Standby, Confirmed, Documentary, Revolving, Transferrable, Back to back). The specifics of any LC are crucial its use, and the subject is too vast for even a very partial treatment here. BG Bank Guarantee BCL Bank Comfort Letter or Bank Confirmation Letter Letter of Buyers bank comforting or confirming willingness to open the requested financial instruments PSP Permission for Soft Probe Instructions given to buyers bank officer by buyer to answer enquiries by sellers bank official regarding buyers ability to obtain necessary financial instruments PB Performance Bond

A bond a seller puts up and is paid to buyer in case seller defaults on contract