HEADS OF TERMS

Commercial Trade Transaction

Date: _____________________________________________

Reference: _____________________________________________

These Heads of Terms (the "HOT") record the principal commercial terms agreed between the Parties identified below in respect of the transaction described herein. Save for the provisions expressly stated to be binding in clause 12 (Binding Provisions), these Heads of Terms are subject to contract and do not constitute a legally binding agreement. The Parties intend to negotiate and execute a formal commercial contract (the "Definitive Agreement") incorporating these terms in good faith and as expeditiously as possible.

1. The Parties

• Seller / Supplier: _____________________________________________ ("Seller")
• Registered Address: _____________________________________________
• Country: _____________________________________________
• Contact Person: _____________________________________________
• Buyer / Offtaker: _____________________________________________ ("Buyer")
• Registered Address: _____________________________________________
• Country: _____________________________________________

Contact Person: _____________________________________________

Facilitating Agent: _____________________________________________ ("Agent") — where applicable.

2. Subject Matter

Goods / Services: _____________________________________________

HS Code(s): _____________________________________________

• Technical Specification: As per the product specification attached hereto as Annex A (or to be agreed and attached prior to execution of the Definitive Agreement).
• Country of Origin: _____________________________________________
• Country of Destination: _____________________________________________

3. Quantity and Delivery Schedule

• Total Quantity: _____________________________________________
• Unit of Measure: _____________________________________________
• Initial Order Quantity: _____________________________________________
• Subsequent Order Schedule: _____________________________________________
• Delivery Period: _____________________________________________
• Lead Time from Order Confirmation: _____________________________________________
• Tolerance on Quantity: +/- _____ per cent on each shipment.

4. Price

Unit Price: _____________ per _____________

Incoterms: _____________ (_____________) [City / Port]

Currency: _____________________________________________

• Price Validity: Fixed / Subject to review as follows: _____________________________________________
• Price Review Mechanism: _____________________________________________ (e.g. annual review linked to commodity index / CPI / other).
• Estimated Total Contract Value: _____________________________________________

5. Payment Terms

• Payment Method: _____________________________________________ (e.g. Letter of Credit / TT / Open Account / CAD)
• Payment Terms: _____________________________________________ (e.g. 30% advance, 70% against BL copy)
• LC Type (if applicable): _____________________________________________ (e.g. Irrevocable, confirmed, at sight)
• LC Issuing Bank: _____________________________________________
• LC Confirming Bank: _____________________________________________
• Payment Currency: _____________________________________________
• Late Payment Interest: _____ per cent per annum above _____________ base rate.

6. Shipping and Logistics

Port / Place of Loading: _____________________________________________

Port / Place of Discharge: _____________________________________________

• Mode of Transport: _____________________________________________ (Sea / Air / Road / Rail / Multimodal)
• Container Type: _____________________________________________ (e.g. 20' FCL / 40' FCL / LCL / Reefer)
• Freight Responsibility: As per Incoterms stated in clause 4.
• Insurance: As per Incoterms stated in clause 4. Minimum coverage: _____________ per cent of CIF value.
• Shipping Documents Required: Commercial invoice, packing list, bill of lading, certificate of origin, _____________.

7. Quality and Inspection

• Quality Standard: _____________________________________________ (e.g. ISO / BIS / EU Regulation / buyer's specification)
• Pre-Shipment Inspection: Required / Not required. If required: _____________ (inspection agency).
• Sampling Method: _____________________________________________ (e.g. AQL 2.5)
• Rejection Procedure: In the event of rejection: _____________________________________________
• Warranty Period: _____________________________________________

8. Certifications and Compliance

• Required Certifications: _____________________________________________
• Labelling / Marking: _____________________________________________
• Phytosanitary / Health Certificate: Required / Not required.
• REACH / RoHS / CE Compliance: Required / Not required.
• Other Regulatory Requirements: _____________________________________________

9. Commission and Facilitation Fee

• Where a Facilitating Agent is identified in clause 1, the following commission arrangement applies:
• Commission Payable By: _____________________________________________
• Commission Rate: _____ per cent of the _____________ value of the transaction.
• Commission Currency: _____________________________________________
• Commission Payment Trigger: _____________________________________________
• Commission Tail Period: Twenty-four (24) months from the date of introduction.

10. Governing Law and Dispute Resolution

Governing Law: _____________________________________________

• Dispute Resolution: _____________________________________________ (e.g. ICC Arbitration / LCIA / Courts of _____________)
• Language of Proceedings: English.
• Jurisdiction: _____________________________________________

11. Conditions Precedent

• The Definitive Agreement is subject to the following conditions precedent being satisfied:
• Completion of satisfactory due diligence by both Parties;
• Agreement on and execution of the full form Definitive Agreement;
• Receipt of all required export and import licences and regulatory approvals;
• Arrangement of financing / payment instrument as specified in clause 5;
• _____________________________________________ (any other conditions agreed between the Parties).

12. Binding Provisions

The following provisions of these Heads of Terms are legally binding upon signature and shall remain binding regardless of whether a Definitive Agreement is executed:

Confidentiality: Each Party shall keep the terms of these Heads of Terms and all information exchanged in connection herewith strictly confidential and shall not disclose such information to any third party without the other Party's prior written consent.

Exclusivity: During the Exclusivity Period of _____ days from the date of signature, the Parties shall negotiate exclusively with each other in respect of the transaction described herein and shall not enter into negotiations with any third party for a substantially similar transaction.

Governing Law of these Heads of Terms: These Heads of Terms (including the binding provisions) shall be governed by the laws of _____________________________________________.

All other provisions of these Heads of Terms are non-binding and subject to contract.

13. Next Steps and Timeline

Target date for execution of Definitive Agreement: _____________________________________________

Responsible parties for drafting: _____________________________________________

Outstanding items to be agreed prior to Definitive Agreement: _____________________________________________

AGREED AND SIGNED

• Signed by the Parties as a record of the commercial terms agreed between them.
• For and on behalf of the Seller:
• Authorised Signatory: _____________________________________________
• Full Name: _____________________________________________
• Title: _____________________________________________
• Date: _____________________________________________
• For and on behalf of the Buyer:
• Authorised Signatory: _____________________________________________
• Full Name: _____________________________________________
• Title: _____________________________________________
• Date: _____________________________________________
• For and on behalf of the Agent (if applicable):
• Authorised Signatory: _____________________________________________
• Full Name: _____________________________________________
• Title: _____________________________________________
• Date: _____________________________________________
• Annex A — Product Specification

Annex B — Shipping and Logistics Requirements

Doc 13 — Heads of Terms (Commercial Trade Transaction) — Neutral Template