BITUMEN

SHIP TO SHORE TANKS OR SHIP TO SHIP DELIVERIES
Seller: US based title holder

1. Once Buyer’s agreement with this current Transaction Procedure is confirmed, a preliminary NCNDA is established, and Buyer sends an LOI on the Buyer’s letterhead (template below as Annex 1) along with a CIS, KYC or detailed Corporate Profile. LOI should include product specs and Buyer agreed broker fees.

2. After receiving an LOI, Seller’s office staff will:
a. Confirm the business entity is in good standing;
b. Contact the LOI signor to arrange an introductory call. A representative of each side’s brokers/intermediaries can attend this call.
c. Seller communicates Proof of Funds (or credit) amount to issue an offer.
d. Seller does not send out “Soft Corporate Offers”.

3. Proof of Funds (POF) is requested based on the product amount on the LOI document. POF (or Credit) is sent to the Seller’s office, attorney or bankers.

4. Documents are exchanged “Buyer/Seller”; and if amenable:

a) Seller issues a Formal Corporate offer (“FCO”) to the Buyer only.
b) FCO contains price, amount, banking, ports and specification.
c) Prices are WELL BELOW PLATTS.
d) Final price and delivery depend on the product, amount, load and discharge ports.

5. When the FCO is Buyer accepted Seller issues the Sale Purchase Agreement (“SPA”).
a) The SPA is given ONLY to the BUYER
b) This SPA has price, timeline, product, banking, insurance and other tacit data
c) Brokers receive a Fee Protection Agreement (FPA) sent to the Seller’s USA attorney

6. When the Buyer signs and returns the Sale Purchase Agreement:
a. The SPA is registered with Seller’s attorney, Refinery Corporate Office & Seller’s banker
b. The Buyer’s banker transmits the Collateral Instrument after SPA signing

7. When the Collateral Instrument is validated, Seller issues a 2% PB and loads a vessel at the Seller’s expense
a. Bank Instruments are held by the Seller’s EU Asset Manager or USA Attorney
b. Bank Instruments stay in the holding account and are returned at Contract end

8. Upon loading Product & Delivery Documents are sent ONLY to the Buyer; including:
a. Charter Party Agreement, Q88 Vessel Questionnaire
b. Bill of Lading with Inspection Report (SGS, EuroFin, Saybolt, Intertek, other)
c. Certificate of Origin and Analysis with Ullage Report
d. Notice of Readiness with ETA to Target Port
e. Vessel/Product Insurance Policy (Lloyds of London)

9. The Buyer gets [wet signature] HARD COPY documents via Courier.
a. Seller’s signature will be on many of these documents.
b. The Buyer can track and/or communicate with the vessel in transit.

10. Prior to arrival Seller signs the Authorization to Board (ATB).
a. Seller signs a Dip Test Authorization (DTA) to the BUYER
b. Customs unseals ship tanks with Seller’s and Buyer’s representatives (local rules apply)
c. Buyer inspects cargo and receives Commercial Invoice (CI)
d. Seller signs over the Certificate of Ownership [TITLE] Transfer. Seller’s signature will pass Title (as product owner).

11. A Bank Wire is due within 3 banking days after CI issuance.

————————————— End of Transaction Procedure ————————————–

IMPORTANT NOTES:

Specific action steps may be discussed between Buyer and Seller on the preliminary conference call.

Minimum monthly quantity for Jet A1 or Crude Oil: 1 million barrels
Minimum monthly quantity for ULSD EN590 and other grades: 50,000 MT

Seller is the TITLE HOLDER (signatory seller; NOT brokering) delivering at own expense with NO upfront fees. Lloyds vessel policy guarantees Seller delivers as per Contract.

Seller company was established in 2006 and is a US domiciled company in good standing with Secretary of State which is verifiable on the Secretary of States website.
Seller has offices in the US and Shanghai (China).
We will provide all direct links to the Secretary of States verification website, Company offices, Registered Attorney and Seller’s website.

Final Price is given to a confirmed Buyer and will depend on product, amount, specifications, load and discharge ports.
Seller can deliver at an average of 15% BELOW PLATTS to a qualified Buyer:
• Light Crude Oils of several origins with sulfur % 0.29 to 0.54. Seller is currently delivering Crude Oil into Ningbo (China) and other locations.
• ULSD Diesel 10 ppm
• Jet Fuel A1
• Gasoline 93, 95
• LPG, LNG
• Light Cycle Oil (LCO)
• Bitumen (various grades)
• Urea, granular
• Pet Coke (various grades)
Seller will do only 12 months Contract (No trial/spot).

Seller is a “Bulk Wholesaler’, NOT a retailer. Seller does NOT have fuel just sitting around. Seller has Refiner Agreements globally (Exxon Mobil, PEMEX and others). Products origin can be either Germany (for CIF NWE, etc), Mexico (for CIF Houston, etc), Oman or other.

POF is needed as the Seller is the TITLE HOLDER to the products delivered. Confirmation is required that Buyer can send payment via MT103 [bank wire] and issue a Collateral Instrument (BG/SBLC) from an acceptable Bank (or confirmed by an acceptable Bank).

POF Option One: Documents/data must be less than 30 days old:
• Bank Statement, Banker Signed Tear Sheet, Bank Capacity Letter (BCL), Banker to Client Email, Bank to Seller’s office email or other supporting documents acceptable.
• A ‘banker signed’ Ready Willing and Able (RWA) letter to issue a BG/SBLC on behalf of the Buyer (suggested RWA letter verbiage can be provided)

POF Option Two: the Buyer sends an Authorization to Verify (ATV) document. Seller can provide an ATV template.
Seller’s banker will validate the Buyer’s capacity to issue a BG/SBLC.

Consultancy fees for seller and buyer side intermediaries are included in the price paid by Buyer and are transferred by the Seller’s Paymaster (US attorney) to intermediary parties. Seller side of commissions is closed.

ANNEX 1

LOI TEMPLATE
ON BUYERS’ LETTERHEAD
DATE:
TO: (Title holder Seller representative)
CC: ops@vox-oil.com – Seller representative/Referring Broker
CC: xxxxxxx – Referring Broker
CC: xxxxxxx. – Referring Broker
FROM: (End Buyer)
Letter of Interest to Purchase
(BUYER) is domiciled in (COUNTRY) operating in good standing with our Government. We confirm that
(BUYER COMPANY) are ready, willing and able to purchase the following commodities;
1. BUYER: XXXXXXX
2. COMMODITY: XXXXXXXXXXXXXX
3. CARGO ORIGIN: (Any OR Non-sanctioned OR Specific country)
4. QUANTITY: XX MT/Bbls trial shipment followed by XX MT/Bbls per Month for 12 Months
5. TARGET PRICE: Equivalent to xx% discount to the applicable Platts
6. TOTAL BROKER FEES: $ per Metric Ton/Bbl, included in the price
7. DISCHARGE Country, port: xxxxxxxx
8. RECEIVING TERMINAL: (Name of receiving terminal or tank farm at the discharge port)
9. SPECIFICATIONS: ATTACH Requested Specs Sheet
10. INSPECTION: Sellers Expense at Load Port (SGS, Intertek, Saybolt, etc)
11. PROOF OF PRODUCT: Documents as listed in the Sales & Purchase Agreement
12. PAYMENT TERMS: Bank Wire AFTER Delivery/Inspection at discharge port
13. WORLD TOP 100 BUYER’S BANK DETAILS:
• BUYERS BANK THAT WILL ISSUE THE BANK INSTRUMENT:
• BUYERS BANK BRANCH ADDRESS:
• ACCOUNT HOLDER NAME:
• (If applicable) BUYERS BANK TO CONFIRM THE BANK INSTRUMENT
• (If applicable) CONFIRMING BUYERS BANK BRANCH ADDRESS
• (If applicable) ACCOUNT HOLDER NAME IN CONFIRMING BUYERS BANK
Source or confirming/correspondent Bank is within the world Top 100 ranking.
In case of our LOI acceptance, we declare the ability to sign and carry out an annual Contract. We understand that
any offer or Contracts are subject to successful Seller verification of funds and prefer to engage with the product
owner with signatory authority to negotiate price and protocols.
We also declare our general acceptance of the Transaction Procedure Overview (Annex 1) and are ready to discuss
and agree upon specific action steps with the Seller.
BUYER’S NAME/COMPANY:
REPRESENTED BY/POSITION:
ADDRESS:
EMAIL ADDRESS, TELEPHONE:
SIGNATURE:
_____________________________________

(TEXT OF THE TRANSACTION PROCEDURE)