1. Proposal for Financial Joint Venture Partner: Business Joint Venture Proposal
ABC was recently formed in an effort to specifically seek out a Financial Partner to
trigger Buy and Sell transactions with current relationships the members have
with suppliers, re-sellers and major end-users in the oil industry. Due to specific
challenges in regulation and policy in the industry, it is no longer allowed to “FLIP”
a commodity from a supplier to an end-user. The corporation engaged in the
transaction must take title to the product first, and then they are legally allowed
to sell the product to the end-user. Therefore, it has become necessary to seek
out a Financial Partner that will come to the table and purchase the first lift or
allocation of product in each of the transactions.
In the scenario described above, this proposal will discuss a Joint Venture (JV)
between ABC Company and a Financial Partner that would trigger the “Buy/Sell”
transaction.
Once ABC has taken title to the product, they will immediately sell the product to
a major energy company, re-seller or directly to an end-user. This will make for a
clean and legal transaction without the risk of committing arbitrage among the
groups involved.
The initial goal of ABC is to identify the JV Financial Partner ad negotiate an
equitable return to the use of their current credit facility, or create an interest
bearing bank instrument from the cash/gold/bonds that the investor has on
deposit, and then have a credit-line issued from the bank instrument. ABC is
seeking a credit facility of minimum $750 million in order to purchase the product
from the seller or refinery.
To ensure the comfort level of the JV Financial Partner, ABC is proposing the
following:
1. The investor/Financial Partner will always control the transactions from the
credit Facility.
2. The funds will remain where they are currently housed.
3. If the JV Financial Partner has cash/bonds/gold (or the equivalent), the
Banking Institution will create an interest bearing instrument and the credit

2. line will be drawn against the instrument. ABC will use the credit line as
opposed to investor’s cash (or its equivalent) on hand to complete any oil
transactions.
4. ABC will only purchase the product from seller/refinery when it has secured
an end-user to commit to an annual contract.
ABC has several direct relationships with domestic and international refineries.
This gives ABC the ability to purchase JP54, Jet A-1, D2, Mazut 100, Crude Oil,
U.L.S.D (Ultra Low Sulfur Diesel), 87 Octane, 89 Octane, 93 Octane, LNG as well
as commodities like Cement, Gold, and Aluminum. These are the products in
greatest demand by our buyers.
We will also be able to negotiate contract purchase terms ranging from 12 to
60 months. Our working relationships with Majors, such as Shell, Exxon,
Valero, Tamoil, Chevron, JP Morgan Chase, U.P.S etc, gives us the opportunity
to purchase products from refineries at deep discount (usually at 20 to 25%
below Platt). We can then offer pricing at Platt or slightly above for
tremendous profits. We also have a lot of Airlines and major end-users we can
fit into this same model.
Before ABC pays for the first lift of any oil contract, there will be a contract in
place from ABC Company to a Buyer of the allocation that it purchases from
the refinery. The End-User/Buyer will re-purchase the First Lift from us at a
price with our profits included, then the End-User will put in place an RDLC
(Revolving Documentary Letter of Credit) or comparable banking instrument
for the remaining term of the contract at the agreed upon price. This will
ensure an immediate legal “FLIP” to the End-User/Buyer and eliminate the risk
of the Financial Partner and ABC having to hold on to the product for an
extended amount of time. This would effect the interest payments on the
Credit line if the product was not sold in a timely fashion.
Through our Network and Direct Relationships with mandates and Brokers,
these are just a few of the International and Domestic Refineries we will have
access to that will supply us with the Product we need for each Transaction.

3. International and Domestic U.S. Refineries:
Mina Al Ahmahdi Refinery
(Kuwait)
Produces 470,000 barrels per day
Paraguana Refining Comples
(Venezuela)
Produces 940,000 barrels per day
Jurong Island Refinery
(Singapore)
Produces 605,000 barrels per day
Ras Tanura Refinery
(Saudi Arabia)
Produces 550,000 barrels per day
BP Rotterdam Refinery
(Netherlands)
Produces 400,000 barrels per day
These are the companies and refineries we will primarily use that will supply
D2, JP54, JET A-1 and Mazut. These grades are exclusively produced in Russia
and sold by Russian companies and their traders. The other Refineries not in
Russia, can supply us with the other products at the wholesale pricing that will
be most beneficial to the Joint Venture’s Profit Margins.
The Use of U.S. Domestic Refineries
ABC will also utilize U.S. domestic refineries to sell the Product. They will
typically sell at above PLATT pricing, thus realizing a much larger margin on
these transactions. Although the Majors will not sign contracts, they will agree
to Purchase with Rolls and Extension for 12 to 60 months.
Most of the Corporate Headquarters of the Majors (Exxon, Mobil, Shell,
Chevron etc) are located in Houston, Texas. One of the partners within ABC
has lived there his entire life and is very familiar with their operations locally.
Once the JV Financial Partner is in place, ABC Company will be able to walk
into the corporate offices of any one of these Major Corporations and show
Proof of Funds (POF) and in turn these major energy companies will show
Proof of Product (POP) if we are engaging in a Buy transaction. This will allow

4. us to conduct a Table Top (TT) Transaction on the spot that will eliminate the
stigma most companies have about POP.
Investment Transaction Overview
Pursuant to the final and executed agreements of the Financial Partner and
ABC Company, this is a specific breakdown of how a typical transaction relates
to the Profit sharing between the two groups.
This example is based on an annual contract of 36 million barrels of JP54 (Jet
Fuel) from one of our Refinery sources at a price of approximately $18.00
below PLATT per bbl – Platt for the sake of this exercise will be $120 per bbl.
The first month shipment would be a liftable amount of 3 million bbls being
immediately liftable. The Financial Partner will show Proof of Funds for $306
million to the refinery for the liftable amount (3,000,000 BBLS). At the same
time we will inform Lufthansa Airlines that we will be taking title to an annual
allocation of 36,000,000 barrels of JP54 and renegotiate a contract for 12
months at a price of (+/- $3.00 below PLATT) per barrel. This is a very good
price for Airlines because they will buy at $1 to $2 ABOVE PLATT pricing. This
transaction will produce a profit of $45 million for every lift of 3 million bbls.
This will equate to a total of $540 million over 12 month contract.
Investor Commitment and Potential Returns
The Financial Partner’s capital will only be at risk for the first lift of 3 million
bbls of the annual contract described above. The J.V Partnership (The Financial
Partner and ABC Company) will take title to the product and transfer it to the
Buyer (in the example above that would be Lufthansa Airlines) upon payment
of the product. For the remaining 11 months of the transaction the Buyer
(Lufthansa) would use its RDLC, SBLC or other banking instrument required to
purchase the product. ABC Company has the capability to structure at least 2
transactions per week with the same type of Margins. That will be 8
transactions per month with minimum contract duration of 12 months or
more.
Proposed Investment Structure

5. Amount of Available Capital:
$750 million
Terms of Banking Instrument:
3 Months
Joint Venture Structure (% of profit of each initial lift)
Financial Partner: T.B.D
ABC Company: T.B.D
Return on Total Invested Capital:
The financial Partner would receive, at a minimum, a 100% return on the
amount of invested Capital invested over 3 month term. If the Financial
Partner does not achieve a 100% return on the Available capital within 3
months then the term of the banking Instrument will be extended to a term
that both parties believe the 100% threshold will be attained.
Note: During the period that funds are drawn down on the Banking Instrument
to pay for the liftable product, ABC Company will pay for the accrued interest
owned the bank/financial partner during that time period.
N.B. We are in joint venture with the company in question designated as ABC
for the purpose of this draft proposal. The full details of the company shall be
revealed in the case of reaching an agreement with executing the proposal.
ABC is registered in over ten countries from Europe to America, Asia and
Middle East.