FTNX RESTRICTED SITE

The FTNX is no longer interested to entertain flawed incorrect and ambiguous private trading applications as seen on the internet. FTNX will only consider to buy from a supplier said goods on the below terms and conditions defined.These are the initial uncomplicated, superior and safe trading terms and conditions that the FTNX will expect to apply as a minimum trading application when buying goods from a Crude Oil/Fuel supplier. All Crude Oil(s) or Fuels not listed on the iCOB board are considered on merit in where such terms and conditions are mostly apparent.

All Times Apply 12.01 P.M Australian Summer Time Date Line Melbourne City .

Purchase of offered goods is subject to offer acceptance as applied under discretion of FTNX CEO D.A.G.Papa. Address all offers by PDF e-mail or facsimile to;


Crude Oil & Fuel Offer
Attention D.A.G.Papa
FTNX C/O FTN Exporting Trading House
Private e-mail: ftnexportingceo@bigpond.com
Facsimile:(613) 9347 0003
Contact details are confidential given only contract.

1. PREAMBLE
2. The nature of business. The FTNX secures contract with various supplier for the physical purchase of goods in where such goods are delivered to a destination port as directed by the buyer. The FTNX sells such goods to its own clients. The FTNX is the “buyer” of such goods and takes full obligations of the transaction it enters into with the supplier. As terms and conditions apply to the purchase of crude oil, such shall also apply to Fuels, Gases and Bio Energy Products if and when such products are listed or offered.
3. Internet application applicable. Supplier and Buyer agree to do business using the internet up to hard copy contract stage.
4. The Supplier in context used defines entity in possession and owner of goods being offered.
5. The Buyer is acting on behalf of an undisclosed principal when buying the said goods. It is encumbered upon the supplier to inform on any offer made whether any limitation prevail as to any port of final destination, to which the end buyer does agree to not deliver any such offered goods to such said country. Under no circumstances will disclosures of any entity or client of the buyer will be disclosed as a prelude to making an offer.
6. FTNX Agents and representative(s) of FTN exporting privy to the nature of business being applied (as per members registered disclosure on www.ftnx.net) shall be allowed association with the nature of business on a continual basis. Likewise; Supplier using their own mandated agent .

7. THE OFFER AND SPECIFIC INCLUSION
8. (a) Date of Offer made to FTNX to include our price offer (b) Transaction Code. (c) A validity date of 10 days or more. (d) Description of product , Origin as well as full Specification. (e) Port of loading or information including matters pertinent if appropriate regarding off shore marine pipeline loading , shall form a part of the type of information applied all offers made to the FTNX , such an offer shall be defined as a “OTS” (Offer to Sell)

9. DELIVERY MODE CIF and FOB
10. Buyer prefers C.I.F ( Named Port of Destination ) incoterms delivery offer . FOB (Name Port of Loading) offer considered as per listed price defined under “FTNX Buys at Price”. C.I.F Distances shall be implied as being 5000 Nautical miles form Port of loading, to port of unloading or less. FTNX agrees to accept a credit for freight rate offered as an invoice application. Longer distances , Seller and Buyer agree to absorb the difference equally.Named port of destination details provided when offer is accepted.

11.QUANTITY OFFERED
12. FTNX buys Crude oil at 6 month minimum allocations of 1,500,000 Metric Tons -/+10% per month or more , taking delivery at 250,000 MT single shipments or more per month , for 6 months at a semi fixed price application. Minimum contract 6 months. Consecutive elongation of contract 6,12,18, 24, 36 month considered in where full contracting quantities and period are initially advised and offered. Maximum quantity allocation purchase sought year per year contract 3,000,000 Million MT. Maximum contracting and allocation FTNX is prepared to enter into at the one time, is for a quantity and period defined as 10 million MT +/- 10% over 36 month.Fuels - Negotiable quantity rate considered.

13. FIRST DELIVERY
14. 60 day minimum and not earlier- Up to 70 days maximum;from first shipment, from payment advice being accepted by the supplier, in where offer and contract as well as payment were finalised within 30 days or less of offer being made. No drawback on freight considered nor give from Black Sea deliveries to another Port. Offer from the supplier must apply total cost to include freight component offered or FOB as per price offered.

15.BUYERS TANKER PRE ADVICE
16. Any FOB offer must indicate Terminal wharf loading or off take tankers berth single point mooring (spm) from the marine terminal. In where such is able to accommodate 300,000 dwt minimum draft restriction to 35 metres more or less; tankers derrick /crane @ 15-tonne safe working load min (swl) capacity to connect the 12-inch floating loading hose more or less, to be stipulated.

17. PRICING ASSUMPTIONS: BASIS FOB or CIF INCOTERMS
18. (a)Price is (semi) fixed for 6 month at a time.
19. (b)First 6 month worth of pricing taken as per offer made on the iCOB board.
20. (c)All Contract stipulation and dates as taken at 12.01 PM AEST
21. (d)For next consecutive six month . Payment taken form www. cmegroup.com to imply WTI World crude prices basis at 34 API, in where such is converted to the nearest Tonne value in whole dollars and cents. 7.3 Barrels equal one metric ton or “Tonne”, regardless of actual conversion factors. From the cmegroup.com site, price is taken and averaged to form FTNX ICOB price basis. If one price is not apparent in any given month, when reading is taken , the other shall price basis shall solely apply.
22. (e) New price is applied to completed formula matrix as apparent on the iCOB board at time offer was made. The FTNX board price is only valid if iCOB prices reflect said formulation to the nearest plus or minus USD$0.10 cents.
23. API grade not supported by iCOB, shall apply that two ©iCOB index listing shall apply to the nearest API grade of the product offered in where an average price is drawn from such two products.

24. DISCOUNT OFFERED
25. The supplier agrees to provide only listed discount to the seller, regardless of any other private understanding reached.

26. PREMIUM PAID BY THE BUYER
27. The buyer pays a premium as listed for each six month contract application. Such a Premium incorporates all added unseen expenses including those customary applications- such as; (a) Currency fluctuation. (b) Excess quantity in the offered 7.3 per Blown Barrel to Tonne conversion factor. (c) Escalating price application while prices are fixed for 6 months at a time. Including Export Duties (e) Ocean going vessel travelling distance to port of unloading in excess of freight distance offered .I.e: Surpassing 5000 nautical miles and appropriate part share there of.

28. PRICE ESCALATION TRIGGER
29. Once offer to buy is accepted: FTNX changes board price upon price triggers being activated against said market index until an offer (OTS) is accepted. Should the price during any 6 month period exceed the listed iCOB price Rise or Fall applications which is sustained for 7 consecutive days in any given month, a secondary price reformulation applies to which; for that particular month, such said price rise or fall are recorded and applied as a debit or credit to favour the supplier , on the last shipment delivery of any given month contracting period. Credit and Debit as applied on the collection attributes of the Financial Instrument for that last month delivery. Only one price rise and one price fall shall be allowed to apply in any given 6 contracting period in where the first and last delivery are excluded from the actual price escalation or fall mechanism, in any given contracting period .
30. A notice to take up any price rise application is advised from the supplier to the buyer once only in writing by e-mail, in any given contracting 6 month period.
31. A notice to take up any price fall application is advised from the buyer to the supplier once only in writing by e-mail, in any given contracting 6 month period.
32. This Price escalation clause provides to offer relief to the Supplier and Buyer in times when unforeseen , unsure or aggressive trading environment has become apparent and shall remain as an active part of contracting terms and conditions.

33. PRICE AND PAYMENT
34. All payment are United Stated Dollars , Euros or Roubles as defined on the offer.
35. The (FTNX) Buyer shall advise a Irrevocable , non transferable , non cumulative revolving UCP 600 formatted Documentary Letter Credit for the whole contract period from 6 months up to 36 months value as offered . Collection at sight of clean presentation of delivery documents. Financial Instrument advised from a top 75 world leading bank as recorded in Forbes Top 500 banks in the year 2009/2010. The opening value of the financial instrument is the price applied on the iCOB index once offer is accepted. The supporting revolving closing DLC value applies the last contract month of the total allotment provided. The debit or credit apparent for the account of the supplier or buyer during calling of price rise or price fall is applied on the last shipment value being the 6 th shipment of every 6 month allotment period.
36. An allocation shall mean 6 months worth of supply or 1,500,000 Metric tonnes, plus or minus 10 percent. A “Contract period” shall define how many allocations are offered in such a contracting period.

37. PERFORMANCE GUARANTEE: FOR LATE DELIVERY
38. The supplier shall agree to a “©LDD” ( **Late Delivery Discount ) as applied on the suppliers invoice to the buyer , for each late shipment delivery. The Discount shall be applied as a credit to favour the buyer. The discount amount against the invoice value of goods for each late delivery is equal to USD$7.20 per Metric Tonnes. Delivery applies as per incoterms 2000/3000 referring to documentary at sight delivery and not physical delivery.(**© FTN Exporting 1988-2010)

39. DELIVERY DOCUMENTS; AS PER INCOTERMS 2000 (*3000)
*ICC© Incoterms 2000 replacement expected JULY 2010 for formal application January 1st 2011
40. Documents as defined on contract dependent of delivery mode application and custom of trade of such shall apply :- but in where shall always include;
41.“ Certificate of Origin”, made as a invoiced value applied as a debit against the Buyers account .
Cargo ‘A” institute insurance policy value for 115% is being sought by the buyer for double hulled CIF deliveries and 120% if single hulled ship is used as per laws applicable to port of entry pratique applications. A Pre-shipment on board leading inspection agency analysis/ quantity report is required , such must be produced by SGS, Saybolt or BOV. A qualified world class ISO rate marine services specialist declaration that the ship is under 25 years old is required. Ship owners B.O.L is the prevailing title document made to order , not endorsed in blank , Notify party; FTN Exporting .Other documents as applied on contract may be sought.

42. ACCEPTABLE SAFE PROCEDURES
43. Supplier: (OTS) Offer issuance/Buyers acceptance.
44. Legally binding status attained subject to final contract. Offer valid for 10 days or more.
45. If the buyer is a unable to accept the offer on the first issuance , the buyer may approach the supplier once only for an extension of validity date by another 10 days to which the supplier has right to ask for price reformulation if matter of price rise or fall have become apparent. The supplier shall entertain such a second approach if made. Should third approach to purchase eventuate, supplier has discretion to continue or cancel the offer outright, without recourse , consequences to either party, or further obligations.
46.Supplier: Contract issued / acceptance 14 days or Less. (Buyer is prepared to issue its own contract model if asked, for suppliers use and consideration.)
47.Buyer :Financial instrument advised within 7 days of formal contract return
48.First Delivery Initiated as per contract 60-70 days thereafter.
49.Credit Collection applied for on each clean “at sight” delivery .
50.Next consecutive shipment within 30-40 days of first delivery.

51. RULES OF TRADE:
52. Incoterms 2000,(3000) UCP600, URC522, English law and Foreign Governance of such. Formal dispute resolution as per LCIA Arbitration Rules London.
53. English language applies for all documents presented and transacted upon.
54. Intermediaries and FTNX Agents agree to apply URPIB rules of trade.
55. Mediation in settling matters in dispute applied amicably as per FTN private mediation rules in the first instance as found own www.itsi.itgo.com download site page in where a panel of experts including Lawyer, Barrister, Banker,Accountant and private experienced traders confer to arrive at final recommendation. The said conference shall sit to the hearing in dispute in where hearing is conducted by a quorum of odd number participants to arrive at the final decision made of ; 3, 5, 7,9 or 11 members depending on the type of dispute apparent.

56. WEB SITES ALLOWED AS CONTRACT REFERENCE
57. www.nymex.com front page.
58. www.distances.com in matters of nautical miles and shipping.
59. iCOB: www.ftnx.net
60. Australian time and dates applies.
61. Reference sites as accepted and offered by the supplier .
62. Acronyms not fully understood addressed when offer is made.

Warning © iCOB, FTNX, LDD,LOBBEX,AQUAMARINA OTS, RFQ, FTN EXPORTING, TWIY, FYBR,URPIB, ITSI and other acronyms were created by FTN Exporting as far back as 1988 in where evidence in writing world wide via surrogate agencies provides copyright protection of such use of said terms. The use of such terms are reserved for exclusive use of their creator FTN Exporting ©2010
“Incoterms” is a registered trade mark of the ICC Paris,France.