CONTRACT POLICY:

1. Upon delivery of grain against an open basis contract, the seller is entitled to an advance of funds equal to 60% of the cash value of the grain using the current value of the designated futures month. Any charges owing to NORAG will be deducted from the advance in full. Once NORAG charges are satisfied, any amounts owing by the seller for crop loans and advances will be deducted from the gross advance.

2. NORAG reserves the right to limit pricing of Basis contracts subject to when the Chicago Board of Trade is open and trading.

3. All basis contracts must be priced prior to the first notice day of the futures month designated in the contract, unless otherwise stated or unless switched.

4. Basis contracts not priced or previously switched will be switched to the next futures month at our discretion prior to the first notice day of the designated futures month. The next futures month will then become the “designated month” for the basis contract. A switching fee of $.03 per bushel will be charged at the time of switching.

5. If at any time the gross advance amount exceeds 95% of the cash value of the grain using the current value of the designated futures month a margin call will be triggered. The margin required to be paid by the seller to NORAG will reduce the gross advance amount back to 60% of the cash value of the grain using the current value of the designated futures month.

6. Margin calls will be due within 10 business days from notification by invoice of the margin amount owing. If NORAG does not receive the margin amount within the 10 business days, NORAG reserves the right to price out the basis contract using the closing Chicago Board of Trade futures price of the designated month on any day after the 10th business day. Any equity or deficit in the contract will be paid or invoiced to the seller, respectively.

7. Sellers who have multiple basis contracts outstanding will have their contracts combined for the purpose of determining margin owing.