BROKER AGREEMENT

First, we would like to thank Larry Wingo, a veteran broker we are proud to associate with, who has been incredibly generous with his unparalleled knowledge and wealth of information in commodities brokerage. We view his consent to use many of his writings here, and his immense contribution to the enlightenment of brokers worldwide in general as absolutely phenomenal. We hope that as we publish these writings in our blogspot, we help further his cause, which is focused on educating all brokers to be better and more productive traders worldwide.

Below is a sample of an agreement document that may be used by two or more brokers, intermediaries, facilitators, consultants, free agents, mandates, etc. as they make efforts for the first time to negotiate, mediate, and/or facilitate a deal. Its a good way to develop trust and gain integrity. Please feel free to use this document, we hope this helps make this industry a lot better.

BROKER AGREEMENT

Whereas all brokers signing this agreement cooperate in order to bring about a favorable conclusion to each transaction in which they are engaged, brokers sometimes take shortcuts, which either border on fraud or are outright fraudulent and designed to trick or mislead others in the transaction. Often, there is no penalty for these unscrupulous acts and so to balance the risk and reward relationship of such deeds, broker agrees to the following:

Consto Trades, LLP (dba Consto Commodity Trades) reserves the right to withhold part or all of the commission of any broker who violates the trust of others by:

1. Telling lies to others involved in the transaction

2. Forging a signature

3. Producing a fake document

4. Unnecessarily delaying documents, vital to the transaction, when requested

5. Omitting facts or withholding information which affect the outcome of the transaction

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Lies

Telling lies can cause delays and lead others to believe things which are not true and this wastes everyone's time in a transaction.

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Forging Signatures

Brokers often take the expedient path by signing for others. This can be very costly, when the document is the NCNDA and they buyer knows he or she did not sign it, because it gives the buyer the idea that he doesn't have to pay brokers. What consequences would there be if a buyer used information provided to him or her if that information was given, without the protection of an NCNDA? You won't be able to convince a court that a false signature is real. Signatures can be compared and when it is found that they don't match, you have lost all the money you paid to attorneys to handle your case. Often, lawyers know that you don't have a case, when they take your retainer.

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Fake Documents

It is not going to serve anyone's ultimate purpose for you or any other broker to fake a document as important as an L/C, BCL, POP or LOI. The list is not limited to these. Experience teaches that each one has a myriad of stories which can be told by those who have wasted their time in a transaction, because some unscrupulous broker was trying to expedite things or get past a sticking point, by faking a document. This is fraud. It's illegal and cannot be tolerated. There must be an equal threat to the benefit of cheating others by faking documents and so I have included a clause on the IMFPA which says, in essence, If you fake a document, it's going to cost you part or all of your commission, so don't even think of faking any document, no matter how trivial you might think it is.

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Unnecessary Delays in the Delivery of Important Documents

Time is of the essence, because the world is a competitive place and buyers are shopping for the best deal and brokers are eagerly trying to provide products in order to get paid. Commissions can be huge and so it is imperative that each broker do his or her best to provide documents in a timely fashion.

You may not agree with the sequence of events in the procedure, but there are important reasons why this order has won acceptance. The IMFPA must be prepared at the onset of any transaction, because brokers lie about how many have to be paid, at their end of the transaction. It's easy to lie about a person, but it's not so easy to come up with a passport number, bank account, address and phone number. For this reason, the IMFPA must be completed, at the same time as the NCNDAs. Once the NCNDAs are signed, there is no reason to withhold the LOI, ICPO or any other document, important to the transaction.

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Omitting Facts and Withholding

If the buyer is intending to use a non-transferrable L/C, sellers want to know, in advance and so do all the brokers in the transaction, so they know how difficult it will be to deliver the target price, with this impedance. When brokers meet with resistance, because of this fact, they will simply drop it from the presentation and this is unfair to others. We get down to the finish line and we can't cross, because the broker left out an important fact, which affects the feasibility of the transaction. There have to be consequences for such omissions.

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I hereby agree to cooperate with all parties of each transaction, in an open and honest manner, telling no lies, forging no signatures, faking no documents, delaying no required documents beyond what is reasonable or necessary and I pledge to tell all that I know, which might have an impact on the transactions in which we cooperate. I understand that I risk part or all of my commission by breaking this agreement.



Print Name: ______________________________________

Sign Name: ______________________________________

Address: ________________________________________

Phone: __________________________________________

STAMP/SEAL: