|©2008 Trader Commodity B2B
|Where Global Trading Begins
|Locating Business Partners Worldwide
|Understanding the "IPG" (Intermediary Payment Guarantee)
Each intermediary in a chain deal has their own commission agreement "IPG" (Intermediary Pay Guarantee)
contract with the controlling intermediary (the person who pays the commission). The person who pays the
commission is the controlling intermediary. Also know as the "PIA" (Primary Intermediary Agent). If there are
10 intermediaries in the chain then there are 10 individual "IPG" commission agreement contracts with the
"controlling intermediary". If there are too many intermediaries in the chain deal, the situation can be handle
When a real estate, bankruptcy lawyer or paymaster is hired to pay the commission this is an indication that
no one is controlling the deal.
Lets say there are 10 intermediaries on the buyers side and 10 intermediaries on the sellers side and each
side will be paid 10 cents a barrel of 4 million barrels. That would be $400,000 for each side. The "PIA"
(controlling intermediary) will appoint one sourcing intermediary on each side to disburse of the commission
for their side. This leaves the controlling intermediary with only having to pay commission ($400,000) to one
person on each side. It would be the duty of the appointed sourcing intermediaries to have a written
agreement with all the other intermediaries for their commission. As the controlling intermediary has a written
agreement with the two sourcing intermediaries he appointed.
This system stops any intermediary in a chain deal from claiming his brother, sister and uncle are entitled
to a claim of the commission as it would be voted out by the group of intermediaries on that side. The
controlling intermediary will keep the 2 appointed intermediaries transparent and in the loop of the deal
and it is the duty of the appointed intermediaries to keep the other intermediaries in the chain deal informed.
If the chain in the deal is not that long the controlling intermediary will have separate agreements with each
individual intermediary who is part of the deal.
The reason for individual agreements, is for the protection of the individual intermediary in a chain deal. If
all 20 people are listed in one commission agreement and one of the listed people are not entitled to the
commission and removed from that agreement for what ever reason that commission agreement contract
become invalid which leaves everyone else on that agreement without a legal claim for their commission.
The NCND/MPA flawed document is designed exactly that way and does not provide sufficient evidence
to link your relationship to the contract between supplier and end buyer. If you are unable to prove that the
deal has closed, how can you then prove that you have suffered a loss in relation to that deal.
Anyone else in the same group must obtain their own "IPG" from the "controlling intermediary".
If you are the controlling intermediary and there are 10 sourcing intermediaries in the chain then you will
send out 10 individual IPG agreements to each of the sourcing intermediaries. Or appoint someone to
assist you in payment to the other souring intermediaries.
Here's how it works for the sourcing intermediary.
1-This "IPG" (Intermediary Pay Guaranteed) document needs to be FIRST filled in and signed by the
"controlling intermediary" (the one who is paying the sourcing intermediary's commission).
2- A hard copy of this IPG document from the "controlling intermediary" needs to be sent to the intermediary
by courier, UPS, FED. etc, not email.
3- You (the sourcing intermediary) KEEP THE ORIGINAL COPY with the "controlling intermediary's"
4- Copy, fill in, sign the "IPG" and send back to the controlling intermediary by courier, UPS, FED etc,
not email. The copy sent back must have the sourcing intermediary's original signature on it.
5- Do not accept or sign electronic signature in this case. Each person has their own "Intermediary Pay
Guarantee" with the controlling intermediary.
6-There is only one beneficiary on each individual IPG and that would be a sourcing intermediary.
Please read (terms and condition) and (collection procedures) of this document very carefully and fully
understand the content of the "IPG". If the "IPG" document is incorrectly handled it can become invalid.
Understand that there is no document that is a 100 percent guarantee for commission. There is only
one person who can be assured that commission will be earned if a deal closes and that is the controlling
intermediary. The document to protect a commission that I personally use "IPG", that was created and
perfected by FTN Exporting in Melbourne Australia and is supported by UCP600 and ©ICC (PARIS,
FRANCE) AND (©INCOTERMS 2000), will give you 99 percent protection in a court of law.