www.chensihong.org
chensihong86@hotmail.com
offer HMS newspaper/offer Used Rail newspaper

Wednesday, September 24th, 2004 FCO Ref. CENI0925

FULL CORPORATE OFFER

We wish to confirm, based on the quote of our suppliers with whom we are direct, with full corporate responsibility, that we are ready, willing and able to transact and provide the commodity of Heavy Melting Scrap 1, 1&2 (80:20) and Used Rail Scrap with the following specifications, terms and conditions. Sales and Purchases will be conducted based on International procedures.

Seller Background: Formed about 30 years back in the USA. ISO 9002 compliant recycling facility in the USA. Customer list includes medium sized steel mills in the USA.

Strategic agreements with other recycling yards in Eastern Europe,CIS,Africa.

Commodity: Heavy Melting Scrap 1 (ISRI 200-202)

Heavy Melting Scrap 1&2 (ISRI 200-206)

Used Rail Scrap (ISRI R50-R65)

Pricing: Pricing is based upon prior sale in USD $xxx per MTW CIF ASWP as follows:

HMS Prices for monthly quantities

based on 12 month minimum contract

30,000MT/mo 60,000MT/mo 100,000MT/mo

HMS-1&2 $ 176/MT $ 170/MT $ 166/MT
Rails $ 190/MT $ 183/MT $ 178/MT
HMS-1 & $ 183/MT $ 178/MT $ 174/MT

Wheels & Axles

For quantities over 100,000 MT/mo please discuss with me.

Origin: Eastern Europe/CIS, Africa or as designated by the Seller.

Destination: ASWP ( Any Safe World Port)

Quantity: XXX MTW/month x XX months totaling XXXXX MTW/year

Packaging: Loose ¨C bulk.

Inspection: SGS or CCIC by Seller. Any other independent international inspection company (such as CIQ ) would be used at Buyer¡¯s expense if desired, but would not to be recognized as part of the payment documents.

Delivery Schedule: Seller to specify for completion of total quantity and first shipment from date of confirmed L/C in Seller¡¯s account.

Payment Terms: Irrevocable, Assignable,Confirmed, Transferable and Revolving Documentary L/C payable in US Dollars, 100% at sight of shipment against receipt of all documents required within 7 days of the contract signing from a Top 25 World Bank.

PBG Guarantee: 2% operative PG Bond to be issued by Seller.

Typical Procedure:

Buyer sends fresh LOI + BCL or LOI with softprobe authorization (can not be more than 7 days old) containing the following three phrases:
The Buyer is aware that this LOI is being issued on (enter the date of issue) to Cenitech Inc, acting as their representative, to be presented to the Seller¡¯s representative .
This LOI is the only current active LOI and has been exclusively offered to Cenitech, Inc for the release of the Draft Contract.
The Buyer is of the understanding that any and all offers and/or contracts are subject to successful Seller verification of funds and that said Seller thus has written permission to conduct a soft probe of the Buyer¡¯s account.
Seller verifies LOI and conducts soft probe, then forwards draft contract. No draft contract will be issued prior to this verification
Seller and buyer negotiate and finalize draft contract
Seller releases final contract for signing by both parties
Buyer opens non-operative L/C
Seller issues Performance Bond guarantee for 2% of the value of the LC to activate the L/C
Seller provides POP (proof of product given bank to bank) when the L/C is ¡°in place¡±
Buyer can request to send representative to the loading port if desired

Pricing is subject to change without notice. This Full Corporate Offer is while stock lasts and is on a first come first served basis. Offer is subject to Seller approval.

Above pricing is net to you and all commissions required must be added. Please provide commission structure required when presenting the LOI. Keep in mind that the larger the commission, the tougher it is to close a contract.