9 March 2015

Contract Procedures For Aviation Kerosene Grade 54

FOB Rotterdam Ex Tank NWE Platts Minus 10%
The Head of Trade for C------is also the Transaction Manager for the
Supply. The Supplier, who is the Owner and Title Holder of the Fuel,
will be identified once procedures are acknowledged by a Principal
Buyer. Executed Order Documents will be addressed directly to the
Principal Buyer, stating the full procedures. The Title Holder will be
listed on the Contract as well as the Title Holders Bank and Bank
Trade Desk or Global Trading account number. The contract will be
with the Title Holder and Principle Buyer and banking (SBLC or
approved instrument) will be confirmed at Bank of America, Wells
Fargo, Mellon Bank or HSBC NY.
Any and all discrepancies between this document and information
given directly from the Supplier and their Bankers shall default to the
Supplier as the ruling party.
PRE-CONTRACT PROCEDURES
(Pre-contract procedures)
A.Principal Buyer holds conference call direct with
Management of C---------- Group, if requested. Upon Buyers
approval of Price, Banking Procedures and Logistics, Buyer
issues a Bank Certified Tear Sheet. (Certified Tear Sheet, or a
Bank Capability Letter signed by two bank officers on Bank
Letterhead, can be sent direct to Suppliers Banker via secure
email/fax)
B.C------- approves Buyer for issuance of Supply Contract and
issues executed documents on Supply company letterhead.
These documents include a Request for Order (akin to an LOI)
Template, Procedure List, Approved Language for Banking,
and a Principals NDA.
C.Buyer completes the Request for Order Template in the
format provided by the Seller, signs the Principals NDA.
Bank Capability Letter ONLY asks the following questions:
1. Is the Buyer in good standing with the Bank?
2. Upon execution of our contract, will the Buyer have the
capability to secure a cash backed bank guarantee?
D.Seller/Sellers bank verifies banking facility and issues draft
Contract.

CONTRACT PROCEDURES
Seller issues draft contract in the Buyers name.
1.0Seller issues draft contract in the Buyers name. 1.1 Buyer

and Seller initial, sign, seal and execute the Contract.

1.2 Buyers bank issues Non-Operative, Irrevocable,

Confirmed MT760/MT700 SBLC (Stand By Letter of Credit to a
US Bank) or BG or Non-Operative, Irrevocable, Confirmed
MT543 in amount of $xxxxxxxxx.xx USD as purchase
assurance to Seller's Bank for purchase of 2 million barrels
(minimum) of JP54 for the FOB Rotterdam rolling spot
Contract x 12 months. Discount price will be determined at
the time of contract issue. (As of 05JAN2015, market discount
is NWE Platts minus 10%.)
1.3 A confirmation copy of the POF Non-Operative Swift
MT760/MT70 SBLC or MT543 transmission must be
immediately e-mailed by the Buyer to the Seller for
documentation and tracking at the address provided by the
seller.
1.4 Upon receipt of the POF Non-Operative Swift
MT760/MT700 SBLC or MT543 the Seller's bank officer will
immediately call the Buyer's bank officer to confirm receipt of
the Swift and notify the Seller via certified courier.
1.5 Upon verification of receipt the Seller will issue POP
programmed to the Buyers name as: Refinery Receipt in the
name of the Buyer, plus Tank receipts, current SGS report on
Quality and Quantity and the Authorization to perform a dip
test for 2 million barrels (minimum) of JP54 via secure e-mail
or certified UPS/DHL courier to Buyer within twenty (20) days.
1.5a Non-Operative Swift MT760/MT700 SBLC or MT543
automatically becomes operative upon issuance of Refinery
Receipt / POP.
1.6 Buyer verifies product and transfers payment for
Commercial Invoice amount to Sellers bank account as
instructed in the Commercial Invoice. All payments are due
within (24) twenty four hours of DTA authentication. Upon full
payment Title passes to the Buyer.

1.7 Buyer transfers JP54 to the Buyer's designated tanks

storage or vessels.