LETTER OF INTENT
Date November 18, 2004

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

SAMPLE IS TO BE EXTRACTED ON THE LOADING, WHICH IS TO BE PACKED IN VACUUM- SEALED BAGS AND TO BE FORWARDED BY EXPRESS COURIER TO

BUYER FOR COMPARISON AT PORT OF DISCHARGE. THIS WILL BE EXECUTED BY “THE INSPECTION COMPANY”

PORT OF DISCHARGE
CHITTAGONG PORT, BANGLADESH
PRICE
THE PRICE IS U$ 150 MT (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 REVOLVING, CONFIRMED, IRREVOCABLE,
NOM-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.

THE BASIS OF DELIVERY SHALL BE OF 15,000 MT CIF CHITTAGONG
SEAPORT, BANGLADESH WITH SHIPMENTS COMMENCING WITHIN 15-20
DAYS AFTER ACCEPTABLE AND CONFIRMED BANKING INSTRUMENT IS IN
PLACE AT SELLER’S BANK. LETTER OF CREDIT FOR 4t SHIPMENTS
QUANTITY 15.000 MT FOR VALUE U$ 2’250.000. 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, THIS L/C WILL
BE CONTINUED UP TO TOTAL QUANTITY 60.000MT AND FOR TOTAL
VALUE UP TO U$ 9’000.000

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.

DOCUMENTS
SUCH AS B/L INSPECTIONS ORIGIN PACKING INVOICE PHYTO RADIATION.

3% PERFORMANCE GUARANTEE
THE SELLER WILL PAY PERFORMANCE BOND EQUAL TO 3% ( THREE 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.
3% PERFORMANCE BOND SHOULD BE DRAW ON SPOT ENCASHABLE FROM ANY THIRD PRIME BANK UNRESTRICTLY AND UNCONDITIONALY TRANSFERRED IN THE BUYERS ACCOUNT IF THE SELLER FAILS TO MAKE THE SHIPMENT.NAME
To RESPOND TO colombiansupply@yahoo.com