1………………………………………… 2……………………………………. SPCT COMMODITY INDEX  TERMS AND CONDITIONS  SUBJECT TO FINAL  NEGOTIATIONS  OFFER AND CONTRACT Future price basis  45-90 days after contract is signed. Effective Date of Posting: 10 July 2024      World wide SPCT Authorised representatives of  FTN exporting as registered from  1 July 2024 are persons allowed to use the SPCT Commodity Index (SCI) when conducting business ’on behalf of the disclosed principal’ FTN Exporting. SPCT Agents will be privately served instructions on the operational aspect of the SCI and processes therein via email on a strictly confidential basis. The following advice is for suppliers world wide (and as relevant end buyers) submitting  products for listing on the SCI. The SCI as well as terms and conditions herein is served as a guiding advice. The final offer and contract overrules guiding advice herein.These terms and conditions may  change without notice should adverse conditions become apparent. Most Government agencies and trading houses out of USA or EC may apply.Dishonourable Governments, especially those bearing US Sanctions as well as trading houses out of Singapore and Japan (ASIA) blacklisted by FTNX may not apply. The final offer and contract are the ruling documents. and that; A supplier  may submit goods for listing on the SCI for FTNX to consider buying; goods which are not listed on the SCI or goods which are listed but bear a lower offer price than specified on the SCI. Goods bearing a  higher price than listed  are considered if market conditions dictate as much.   When buying goods from an export ready supplier FTNX is the Buyer. When selling goods  to an end buyer FTNX is the Seller. A supplier may submit a full legally binding offer or non binding  in-house document as found in the FTNX library defined as an AOS. The document marked SITO© may also be used by a SPCT agent representing a supplier  for submitting to FTNX. In all cases FTNX will not entertain any enquiries without the proper forms being submitted in a legible manner.  A supplier may also submit a ‘good quote’ as an informal document using a combination of emails and documents if they are served by a SPCT agent.  An end buyer may use the BIF on the same basis when contacting FTNX. FTNX will consider all wanted export ready goods directly submitted by a supplier in possession of such, as  held as a  stockpile on the condition no SPCT Agent is serving or assisting the supplier, and no SPCT Agent has been in contact with the supplier 6 month or less prior. FTNX will consider inquiries from end buyers mirroring  the same conditions advised above, where relevant..  A supplier who is using the services of a highly informed SPCT agent, may not approach FTNX and must remain attached to the the Agent until failure of success of the transaction  is apparent. The duties of the SPCT is to service instructions and guidance to a supplier or end buyer with good and honourable intent at all times.  THE SCI OPERATIONAL ASPECT THE SCI may remain online or be removed randomly at busy times at the discretion of FTNX. Any transaction already commenced when the SCI is removed remains valid.  An offered buy price taken by a supplier at one time may shift at another time when delivery is ready; the operational aspect of the FTNX  and prices therein are the prices paid at contract signing.  Buy prices offered  move monthly and is set  on the 15th day of any given month at 12.01 PM AEST, as the official payment price, regardless when the actually offer servicing supply was submitted. SCI is a future buy price basis fixed via premiums, or (discounts) for the life of the contract as per the revolving shipment  taken. Single shipments attract a lower price than the SCI listed prices may be assumed, as FTNX transacts on very large non cumulative revolving contracts as the preferred application over single shipments.   Discounts on market benchmarked price is sought by FTNX for purchasing large quantities of a export ready products on a revolving basis,.  End buyers looking to buy single shipments of listed products can expect a higher price as negotiated at the time and cannot buy single shipments at revolving prices. Single shipment transactions do not apply some of the  aspects found on the SCI and are subject to final private negotiations.    FTNX has direction whether or not to buy single shipments of goods offered by a supplier. FCL 20ft lots of 500 MT  revolving or NBC shipment at 12500 MT revolving lots is the minimum revolving lots considered at it applies to quantities.  Delivery of 3 shipment or more within a 1 yr period is is considered a revolving contract at the minimum level. Larger quantities is always preferred. As an example;  SCI would consider buying Coal at 100,000 MT per month for a revolving basis, or 7 years is defined as a very large contract.   From time to time FTNX may sell goods  in a 12 day on the  SPOT  transaction, for goods already ocean going on board a ship-worthy vessel. Suppliers may submit on the SPOT single shipment of goods for FTNX to consider buying on a private 5 day basis  subject to negotiation without SCI conditions applying where physical delivery can be initiated  under 12 days thereafter. Goods offered at SPOT must be on open going vessel and all documents serving such goods must be on hand. A firm buy price must be apparent on the offer made. The offer must be valid for 12 days or less. A SPOT offer must bear a fixed price and be offered at a discounted price when compared to a relative benchmark. The price must include unloading expenses and freight collect rate.  FTNX has discretion to reject on the ‘SPOT’ offers which reflect an adverse purchasing aspect. Old ships keeping goods afloat as a storage vessel is not deemed by FTNX as being an acceptable  “SPOT” deal application.  FIXED  BUY PRICE  The SCI buy prices is reflecting goods found on benchmark exchanges found worldwide at the EXW price basis, in where FTNX has delivery margins (expenses),  included in the FOB payment price as indicated on the SCI which is subject a final assessment.  A  Fixed Premium/Discount  where  offered,  such factors  are  fixed aspects added to the net buy price to arrive what FTNX is prepared to pay for such goods sometime in the future when  purchase takes place. The first payment price for goods is the price arrived at when the contract was signed, whether such is signed on the 15th day of the month or before. Once a revolving  contract is signed, FTNX expects first delivery within 45 days or less thereafter; as specified on the contract and every 30 days thereafter for all other deliveries thereafter. The price of goods is tracked once the contract is signed and the new  payment price  is applied from the second shipment onwards.  The first delivery prices is fixed once the contract is signed and is the only buy price factor that cannot be changed; and is the price payable for first delivery  once the purchase contract is signed and returned to the supplier by the buyer FTN Exporting. The first delivery price remains fully fixed to mitigate any  rise rise event that may call for an amendment on the credit (to ensure no delays are apparent on first delivery) to pay for goods,  at first delivery. The supplier using FTNX SCI and its agents to sell excess stockpiled goods or manufactured export ready goods will receive the listed or negotiated  listed payment, less a SCI usage fee representing on average 0.75% ( as per the rate  listed on the SCI at the time ) as assessed on the goods purchase price; said rate is deducted  from the invoice value payable,deducted from each delivery, or as marked on the SCI.  This SCI fee is called a SCI operational expense or OPX . When no premium is offered on listed goods the price displayed is a discounted  price or a price which was submitted by our suppliers as firm-may be assumed. MITIGATION FACTORS   SCI listed product will have a reliable trusted benchmark that FTNX follows. Each listed  product  when clicked bears the reliable  benchmark  website FTNX uses when setting prices for a particular product. When supply is scarce or hard to secure prices remain high. Premium is served with such products When a glut is apparent, or market conditions are sluggish, prices will drop bearing no premium where a discount on market prices will be sought more so when a large revolving purchase is being considered by FTNX. It takes a great amount of money, time, effort  and energy to buy large amount of goods on a revolving basis.A supplier is using FTNX ability to secure goods for its own clients and therefore  FTNX has the right to terminate any transaction with a supplier, before a contract is signed if its found that the suppliers’ intent is less than honourable; is conniving,untruthful  or misleading.  If the supplier wishes to use their own  benchmark, such will be considered on the condition such a benchmark price basis is assessable freely online at no cost; and is deemed reliable and accurate. The SCI is a fixed price application, limited in scope as prescribed under the mitigation factor. FTNX uses the benchmark to arrived at a future buy price at EXW. FTNX then offers a delivery allowance and seeks a  discount ( or offers a fixed premium) to arrive at the SCI price basis. No guess work is applied. All factors used are applied in conjunction with the fixed mitigation factors used, as apparent at the time goods were submitted for listing. The mitigation factor appear on the SCI and may change after a supplier has submitted his offer to sell goods to FTNX in which case the mitigation factors  originally offered on the SCI when goods were submitted remain fixed for the life of the contract where the EXW price is tracked and applied on the 15th day of a given  month  which changes all other listed  entries accordingly. The SCI  will bear a transactional code to identify the basis taken by the supplier.  Should the price of purchased goods rise, after first delivery,  at the EXW aspect is listed to change the prices on the index in a given month, after all factors have been applied, the new price once assessed under the basis taken is payable for the affected delivery as specified further herein. Whether or not delivery is eventuates  on the 15th day of a given month, the price payable for goods is obtained on the 15th day of a given month as it is applicable  from the country of the buyer FTNX as taken by sight, prior or at 12.01 pm is the price payable . Once the payment price is taken, such is the expected payment price, regardless if goods are late in a given month or late by months.  For added clarity; if a delivery is due by the 15th day of January in a given year and in where; such a shipment arrived late let us say, in March of the same year, then the  amount payable by FTNX is the net  payment price taken as it  arrived and was taken on the 15th January  12.01 PM  or earlier AEST. The sequence of late deliveries will be required to follow the amount payable once a tracked price is taken, to follow the appropriate expected shipment.  Should the EXW price rise or fall  dramatically on a delivery month as to affect or consume the  100% of the premium or discount offered, for one  delivery  as apparent when the buy price is taken on the 15th day of the applicable month; where the price did not fall back within the bounds of the basis, and  remains in breach for the second  delivery, where  no  premium or discount is apparent, FTNX shall be required to apply the new current relevant  factors for the second delivery and every other delivery tracked as being in breach thereafter, as per the SCI basis to ensure a  default value of  $5.00 per MT is the minimum  fixed value of the premium or discount apparent while the breach remain effective. The above  aspect assumes that prices applied for a delivery, after the monthly change is applied in where  100 percent of the premium or discount value  has been consumed by the changes ; the default rate will apply for the deliveries affected.  Should the changes cause the premium or discount vale rate to fall but rest above US$0. 20 cents or more per MT,( or as per the mitigation rate  displayed on the SCI) said default rate will not apply as the premium or discount must be fully consumed to activate the default rate.  Said 20 cents per MT factor  or less shall be deemed the trigger that activates the default rate; for the affected delivery.  All price basis rounded to the nearest whole cent or unit. The specification offered by the supplier applies; inferior or lower graded specifications may attract a different listing price as such, prices offered on the SCI are for goods bearing a rating to express quality of  goods offered as   ‘First Grade, ‘A’ Grade or ‘First Class’ quality. All export taxes and imposts imposed by an exporting country are included in the buy price offered by  FTNX including all delivery expenses at POL as per the ICC Inccoterms used.  VALIDITY DATE The supplier  shall make an offer, AOS or SITO and submit it to FTNX bearing 4 months validity (6 month validity is the preferred aspect) is the minimum validity requirement, before goods can be listed on the SCI.  Extensions of 4 months  shall be made available, if sought by FTNX at discretion of the suppliers. Once an AOS, Offer, SITO is submitted in where FTNX makes the attempt  to purchase goods within the said validity day offered the transaction will commences with FTNX submitting a formal legally binding document called  an  ‘Offer to Procure’ (OTP). The OTP once released defines that a live buying transaction has commenced. A transactional/negotiating period of 30 days is then set aside to complete the transaction in where first delivery is 45 days from when the contract is signed or as stated on the contract for an average transactional period of 75 days or less for first delivery to occur,  is the expectation.  First delivery day set at 90 days after contract are signed or less is also considered by FTNX especially with goods that are approaching a harvest timeline, which may also be offered way in advance of actual harvest date as per the price the supplier is seeking/testing.  When a SPCT agent is involved in a transaction, the agent must remain with the transaction in serving the needs of the supplier so that such needs or issues can be correctly presented to FTNX as they occur.  Above is a summary in part, as it pertains to  the  terms and conditions that will need to apply that the supplier must accept, before seeking to submit goods for SCI listing; unless such conditions in full or in part are overridden on the OTP or contract.  Above is about using the SCI. All other matter about procedures and a payment instruments can be sighted on the FTNX.net website. A supplier once assuring supply, is obligated to perform on matters of supply if approached by FTNX within the validity period to by buy such goods. No charges may be presented as having been incurred  by the supplier for simply applying to assure goods to the SCI, as such no such charges may be imposed by the supplier to FTNX until they become evident, after  the offer is signed as legally binding END BUYER The end buyer  who wants FTNX to source goods for them or  who wants to consider buying  goods listed on the SCI must submit an BIF as found in the FTNX library. If the end buyer is using or has conferred with a SPCT agent 6 months or less prior, then the end buyer must seek assistance of the SPCT agent and cannot submit the BIF directly to FTNX.     Once the BIF is successfully submitted and a PDF,  the SPCT agent will remains with the end buyer until deal failure  or  success is recorded. The sell price to the end buyer is the same as the listed price and basis as relevant where the OPX on the end buyers side of the deal has yet to be added.  FTNX will not buy from or sell to countries bearing western banking sanctions with USA, England or Europe.