Crete Grain Company           Toll Free 800-255-7191
220 Denver Drive                                                    Westgate 701-742-2982
Crete ND 58040-5009                                              Crete 701-753-7191

CRETE GRAIN COMPANY   GRAIN DELIVERY AND PRICING POLICIES  WESTGATE STATION  AND CRETE LOCATION  EFFECTIVE JULY 1, 2009 DELIVERY Grain delivered will be applied to the oldest priced or basis-fixed contract for the current delivery period. If the seller has no priced or basis-fixed contracts for the delivery period, the grain will be placed on OPEN STORAGE.  New assembly sheets will be established every Monday morning. Assembly sheets from previous weeks will have 30 days from the last day of delivery during which the producer can price the grain. If the Open Storage grain is not priced within 30 days of the last day of delivery, it will be settled to the current price later program offered at the time. Crete Grain may elect to settle open storage bushels to price later, with fees starting 30 days after delivery.   GRAIN CONTRACTS CASH – Contract that establishes both the futures price and basis value before or after delivery. All premiums, discounts and other charges to be applied on final settlement.   MINIMUM PRICE – Contract that establishes a floor price by using options with a futures price and basis value set before or after delivery. Option premiums or discounts will be set initially with any adjustments or other charges to be applied on final settlement.   BASIS FIXED – Contract that establishes a basis value; futures price may be established before, during, or after delivery. Customer is entitled to up to a 70% advance of cash value less premiums, discounts or other charges. Customer is subject to futures gain or loss versus initial advance. Customer must repay advances immediately if value of contract falls below 110% of advance paid.  FUTURES FIXED – Contract that establishes a futures price; basis value will be set at the earliest of: Buyer’s request, 30 days after last date of delivery, or first notice day of the referenced futures contract. All premiums, discounts and other charges to be applied on final settlement. PRICE LATER – Contract that leaves both the futures price and basis value open; current price later program charges to apply; futures price and basis value to be set later. Customer is not entitled to an advance and gives up ownership. All premiums, discounts and other charges to be applied on final settlement.      CONTRACT AND SETTLEMENT POLICIES All contracts for forward delivery and credit-sale contracts must be signed by the producer and returned to Crete Grain before any settlements can be finalized and checks issued! Grain delivered will be applied to the contract with the earliest delivery period. If there are multiple contracts with the same delivery period, the oldest contract will be applied to first.  If a producer has no contracts, or if all contracts have been filled, grain will be placed on open storage and subject to Crete Grain’s current policies with regard to open storage grain. A contract that is short bushels will be priced out at the market as an under-fill. If a producer is unable to fill a contract, Crete Grain may allow the producer to roll the contract to a later delivery period.   Sellers should price grain and grain contracts during the market hours of the CBOT, 9:30 am until 1:15 pm. Crete Grain MAY, AT ITS OPTION, agree to price limited quantities of grain after the market closes. Crete Grain will enter DAY or GOOD TILL CANCELLED pricing orders at seller’s request. Final settlements will be made and checks issued upon request. Producers should request settlement within 30 days of delivery. It is helpful for producers to provide us with advance notice of when they would like to pick up their checks or settlement documents. The producer has the option to defer money by using an installment-sale contract that will earn interest at a rate of 1.5% per year. This interest rate is subject to change at any time. Producers should advise Crete Grain of their intent to use an installment sales contract within 30 days after delivery.