Commonwealth Energy Group

BELOW ARE THE REFINERY REQUIRED PROCEDURES
WHICH ARE NON-NEGOTIABLE

1. Buyer submits an LOI on buyer’s letterhead and signed by buyer , along with a Bank Letter of Financial Capability (Text of both below). Addressing of the LOI shall be as follows: "The Seller, B.I.G., via Commonwealth Energy Group".

2. The seller issues a draft contract addressed and customized for the buyer with seller’s complete information including banking information. The buyer then makes any needed amendments and signs. NOTE: The principals may be working together at this point in negotiations.

3. After all amendments are completed and accepted by the seller, the final contract is issued accordingly for the buyers’ signature.

4. Within 7 international banking days after signing the contract the buyer’s bank issues a letter of readiness via swift to the seller’s bank. The letter of readiness shall state that the buyers bank will, after delivery of the verifiable soft proof of product and the sellers performance guarantee, issue the necessary non operative financial documents agreed upon in the contract.

5. The seller’s bank then swifts verifiable soft POP and the a non-operative 2% Performance Guarantee. to the buyers bank.

6. Upon verification of the soft POP by the buyer, the buyer’s bank issues as collateral, a NON Operative conditional Bank Guarantee or SBLC for 1 month’s product value or 100m usd whichever is greater, as sellers protection against buyer default. The BG or SBLC must remain in place for the entire term of the contract.

7. Buyers bank issues and swifts a *non-operative* RDLC, then sellers bank swifts verifiable hard POP, which when received and verified, makes the sellers Performance Guarantee and the buyers RDLC & BG or SBLC operative. Shipping of product begins, as per contract.

8. NOTE: Product is only paid for under the RDLC after it is received at buyer’s port, is inspected and verified by the buyer via SGS, Saybolt, CIQ, or other, and the documentation of that verification is received by the buyer’s bank. Buyer’s bank will release payment for the actual delivered amount of fuel when they receive those documents.

Please note: The Bank used by the buyer MUST be a "AA" or higher rated prime bank. Top 25 Western Bank is preferred.

LOI Text Bank Letter Text