To Whom It May Concern :
WE COLOMBIAN COMMODITIES SUPPLY HEREBY STATE AND REPRESENT THAT IT IS OUR INTENTION TO PURCHASE, AND WE HEREBY CONFIRM THAT WE ARE READY, WILLING AND ABLE TO PURCHASE CRYSTAL CANE REFINED WHITE SUGAR- ICUMSA-45 IN THE QUANTITY AND FOR THE PRICE AS SPECIFIED IN THE TERMS AND CONDITIONS AS STATED BEOLW THIS REPRESENTATION IS MADE WITH FULL CORPORATE AUTHORITY AND RESPONSIBILITY OF THE ABOVE STATED BUYER.

COMMODITY: Crystal Cane Refined White Sugar – ICUMSA – 45 GRADE A
ORIGIN: BRAZIL
QUANTITY: 60.000 TM

Specifications:
ICUMSA: 45 RBU
POLARIZATION: AT 20º 99.8% MIN
MOISTURE: 0.04% MAX
SULPHATED ASH
CONTENT 0.04% MAX
GRANULATION FINE
SOLUBILITY 100% DRY AND FREE FLOWING
RADIATION NORMAL W/O PRESENCE OF CAESIUM OR IODINE: CERTIFIED
COLOR: SPARKLING WHITE MAXIMUM 45 ICUMSA ATTENUATION INDEX UNITS ( ICUMSA METHOD NO: 4-1978)
SEDIMENTS: NONE
SMELL: FREE OF ANY SMELL
CROP 2003-2004
REDUCING SUGAR: 0.05% MAX BY WEIGHT
SO2: 70MG/KG MAX
SUBSTANCE SOLID CRYSTAL
MAGNETIC PARTICLES 4MG/KG MAX
MAX AS 1 P.P.M.
MAX PS 2 P.P.M.
MAX CU 3 P.P.M.
HPN STAPH AUREUS NIL
PRICE THE PRICE IS U$ 135 MT CNF LIO (LINER IN/OUT) BASIS CHITTAGONG SEAPORT, BANGLADESH.
PACKING 50 KG NET PP BAG 2% EMPTY BAGS SHOULD BE SUPPLIED FREE OF COST
PAYMENT TERM 100% FULLY FUNDED CONFIRMED, IRREVOCABLE, TRANSFERABLE DOCUMENTARY LETTER OF CREDIT PAYABLE AT SIGHT AND NEGOTIABLE PAYABLE AT SELLER BANK COUNTER AND ADD CONFIRMED BY AND PRIME BANK WITH SELLER COST.
THIS LETTER OF CREDIT FOR 1st SHIPMENT QUANTITY 60.000 MT FOR VALUE U$ 8’100.000 AFTER THE SUCCEESSFUL 1st SHIPMENT AND HAVING A SWIFT MESSAGE FROM BENEFICIARY’S BANK TO THE L/C ISSUING BANK DESCRIBING B/L NUMBER, VESSEL NAME AND ALL OTHER RELATED DETAILS AND HAVING RELEASED THE PAYMENT OF 1st SHIPMENT FROM L/C ABOVE PROCEDURE.
PENALITY CLAUSE
IF THE SELLER FAILS TO MAKE THE SHIPMENT THE SELLER SHOULD PAY A SUM EQUAL TO 5% (FIVE PERCENT) OF THE VALUE OF L/C IF THE BUYER FAILS TO OPEN THE L/C THE BUYER SHOULD PAY A SUM EQUAL TO 5% (FIVE PERCENT) OF THE VALUE OF L/C AND THIS PENALITY SHOULD BE CONFIRMED BY BOTH THE PARTIES BANK.
IF THE SELLERS FAILS TO MAKE THE SHIPMENT WITHIN STIPULATED TIME ACCORDING TO THE L/C THE BUYER CAN CLAIM 5% OF THE SHIPMENT VALUE FOR EVERY 7 (SEVEN) DAYS DELAY AND THE SUMS OF AMOUNT SHOULD BE DEDUCTED FROM DE PRECEED.
INSPECTION
BUYER AND SELLER AGREE TO ONE INTERNATIONAL INSPECTION LIKE SGS/LLOYDS/CICC OR BOTH THE SIDE BUT IT WILL BE SELECTED/ NOMINATED BY THE BUYER SIDE. SELLER WILL PAY INSPECTION COST. BOTH SIDES ( SELLER & BUYER ) REPRESENTATIVES WILL COUNTER SIGN THE DOCUMENTES AND IT WILL BE INTEGRAL PART OF THE NEGOTIATING DOCUMENTS.
2% PERFORMANCE GUARANTEE
THE SELLER WILL PAY PERFORMANCE BOND EQUAL TO 2% ( TWO PERCENT ) OF THE SHIPMENT VALUE OF 60.000 MT AFTER THE BUYER OPENS A PRE-ADVICE L/C WHICH WILL BE CONFIRMED BY SELLER BANK THROUGH SWIFT MESSAGE IN THE FORM 799/999.
2% PERFORMANCE BOND SHOULD BE DRAW ON SPOT ENCASHABLE FROM ANY THIRD PRIME BANK IN PANAMA AND UNRESTRICTLY AND UNCONDITIONALY TRANSFERRED IN THE BUYERS ACCOUNT IF THE SELLER FAILS TO MAKE THE SHIPMENT.
COLOMBIAN COMMODITIES SUPPLY