TEMPLATE & DRAFT - SALES AND PURCHASE CONTRACT

Contract No:

THIS AGREEMENT MADE AND ENTERED INTO ON

________________ 20 Commento [cg1]: Date of the signature

VALID FOR 5 (FIVE) DAYS Commento [cg2]: Terms of duration

By and between:

Herein after called the “seller” with

Through:

And

.
Reg no.: _____________________

Herein after called the “buyer” and Commento [cg3]: Parties

Whereas: The seller and buyer, each with full corporate authority, certifies,
represents and warrants that each can fulfill the requirements of this
agreement and respectively provide the products and the funds referred to
herein, in time and under the terms agreed to hereafter;

and

Whereas: The buyer hereby agrees and makes an irrevocable firm contract to
purchase _________ MT (________________________ metric tons) ____ of
cement ____ N or R cost, freight and insurance (CIF) incoterms ___20,
Commento [cg4]: incorterms
and

Whereas: The seller and the buyer both agree to finalize this contract under
the terms and conditions; and the product offered for sale is subject only to
the terms and conditions contained in this contract and strictly confidential
between the buyer and the seller and it is therefore agreed as follows: Commento [cg5]: premises

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1. PRODUCT

___________SHALL CONFORM TO INTERNATIONAL STANDARD

ACCORDING TO, BRITISH STANDARDS _____, OR UNITED STATES
STANDARDS ______ or RUSSIAN CERTIFICATION ____ OR EUROPEAN
STANDARD _____2000 Commento [cg6]: conformity

SPECIFICATIONS:

2. ORIGIN

SELLERS OPTION – Excluding China

3. DESTINATION / PRODUCT DISCHARGE:

3.1 Destination shall be CIF ________________________ (non USA Commento [cg7]: incoterms
sanctioned port) (see article 26 terms and definitions) subject to
sellers receipt of all appropriate permits, permissions and licenses.
3.2 The basis of delivery for all other shipments shall be minimum
twelve thousand five hundred (12,500) metric ton shipments.
3.3 Delivery shall begin thirty to forty (30 -40) days after receipt and
confirmation of an operative financial instrument acceptable to the
seller, and completed within the stated time.
3.4 Minimum discharge rate of fifteen hundred (1,500) metric tons per
weather working day (WWD) subject to discharge port offloads
capabilities.

4. PRODUCT DELIVERY

4.1 The date (s) of bill of lading (CIF) shall be considered the date (s)
of delivery. Commento [cg8]: risk passage:
incoterms
4.2 The first delivery shall begin thirty to forty (30 - 40) days after
receipt and confirmation of a letter of credit acceptable to the seller.
4.3 The seller shall have the right to deliver earlier than agreed in this
contract giving notice to all designated parties as required herein,
with the approval of the buyer.
4.4 The product shall be shipped to the relevant provisions of this
contract with the shipment to be forwarded to destination port/s in
minimum shipments of twelve thousand five hundred (12,500)
metric tons per lift (+/-5%)

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 4.5 Total shipments shall be according to shipping schedule. (See
"Appendix 2") minimum is subject to slight and reasonable
variations in schedules due to the customary and usual exigencies.
Consecutive shipments shall be shipped by delivering and receiving
schedule of buyer, sent to the seller after the first shipment has left
the port as indicated by the SGS certificate. Incoterms 20 / CIF
(see article 26 terms and definitions)
4.6 The buyer and the seller agree that partial shipments are allowed
and transshipment not allowed.

5. CONTRACTED QUANTITY

The total quantity of the contract shall be determined by the certifications of weight
issued by the inspection authority and by the bill of lading of the shipment that was
in effect delivered to the buyer.

6. PRODUCT WEIGHT AND QUALITY

6.1 The seller guarantees that each shipment of cement 42.5 shall be
provided with an inspection certificate of weight and quality at time
of loading and such certificate shall be provided by Société
_____________ or similar recognized authority at seller’s expense,
and shall be deemed to be final.
6.2 The seller shall instruct said authority to carry out the inspection in
strict accordance with the international chamber of commerce
(I.C.C.) rules.
6.3 The buyer shall, if desired, and at his own expense provide
additional inspection at port of loading to confirm loading.
6.4 If discrepancies should at any time and in particular case result in
relation to the inspection certificate (s) issued at the port of loading
and destination, it is hereby agreed that arbitration shall be
employed to determine the appropriate judgment.
6.5 Both parties agree to be bound by the arbitrator’s decision for or
against either buyer or seller.

7. PACKING

7.1 The product will be packed in net ___ kg (_____ kilograms) new
polypropylene bags with polyethylene lining.
The bags have a combined tare of ____ gm (____ grams) and are
sufficient to ensure the safe arrival of product to destination and
packed in 1MT, 1.5MT or 2MT wet proof sling-bags/big-bags Commento [cg9]: packaging
8. QUANTITY

8.1 __________ METRIC TONS (+/-5%) CIF FOR CONTRACT

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 8.2 25,000 METRIC TONS (+/-5%) CIF PER MONTH Commento [cg10]:

9. PRICE PER METRIC TON

___________ UNITED STATES DOLLARS $_____ CIF ASWP (NON

USA SANCTIONED PORT)

10. CONTRACT AMOUNT

UNITED STATES DOLLARS $__________________.00 (+/- 5%)

_________MILLION ______ HUNDRED THOUSAND US DOLLARS Commento [cg11]: price

11. PAYMENT TERMS Commento [cg12]: payment terms

11.1 Shall be by Irrevocable, Confirmed, Non-Transferable, Auto-

Revolving Documentary Letter of Credit (MRDLC) with a face
value of _______ Million _______ hundred and ________
Thousand United States Dollars (US$ __________.00) (+/-5%)
and is assured for the full contract value of ______________
Million ________ Hundred Thousand United States Dollars
(US$ ___________.00). This instrument will be valid for 14
months and 16 days on a 12 month contract and issued or
confirmed by a top 50 Western Bank.
11.2 The letter of credit shall allow a minimum of fifteen (15) banking
days for presentation and negotiation of documents but within the
expiry period.
11.3 The letter documents shall be negotiable and payable at the seller’s
bank; the negotiation and payable shall be at counter of
corresponding bank.
11.4 Letter of credit opening bank shall allow adding confirmation and
advising by any bank at the expense of the buyer’s side.
11.5 All bank costs from buyer’s bank to seller’s bank are for the buyers
account.
11.6 Transfer of the letter of credit shall be on sellers’ account
(beneficiary) all credit to be made out to mandate holder with full
corporate authority.
11.7 If a letter of credit is issued by the buyer to the seller that is not in
accordance with the terms of the contract or what is acceptable to
the seller and the sellers bank the contract will be cancelled and the
buyer shall be responsible for all confirmation, advising and
cancellation costs.

12. PERFORMANCE BOND

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Two (2%) percent of the monthly shipment value will be issued within ten (10)
international banking days of receipt, confirmation, verification and acceptance of
letter of credit acceptable to the seller and the sellers bank.

13. PROOF OF PRODUCT

Full POP shall be provided by seller after receipt of a non-operative letter of credit
acceptable to seller and seller’s bank by Swift MT799. Or a partial POP can be
provided in form of an AFFIDAVIT, CONFIRMED BY THE SELLERS
BANK when a payment of $30,000 “Buyers Good Faith Deposit” has been
received into an Escrow Account. The $30,000 is fully refundable when the buyer
has fulfilled his obligations under this contract. Should the buyer, after signing this
agreement, fail to deliver the non-operative LC within the time frame of 30 days or
for any other reason breach this agreement, the seller has the right to cancel this
agreement and keep the “Buyers Good Faith Deposit” for defaulting of this
agreement.

14. PRODUCT DOCUMENTATION PER LIFT

A full set of the following documents will be presented to the buyer, buyer’s bank:

A. Three (3) original and three (3) copies of signed commercial invoices;
B. Three (3) original and three (3) copies of full set of clean on board ocean
C. Bill of lading (b/l) marked "fright pre-paid" issued to the order of buyer;
D. Two (2) original and four (4) copies of certificate of quality quantity and
weight inspection issued by SGS only;
E. One (1) original and four (4) copies of certificate of origin, issued by the
chamber of commerce and industry of the country of origin;
F. One (1) original and two (2) copies of shipping company statement
confirming that the age of the vessel does not exceed twenty (20) years
and the vessel is registered under Lloyds registry;
G. One (1) original and two (2) copies of non-radioactivity certificate;
H. Pre-shipment condition survey of cargo, inspection certificate for the
vessel (cargo hold cleanliness/suitability to load);
I. International maritime bureau certificate;

15. PRODUCT INSURANCE

The seller shall provide insurance at his sole expense and responsibility covering
110% of total shipment value and the buyer is the beneficiary.
Commento [cg13]: insurance
16. DEMURRAGE Commento [cg14R13]: insurance

16.1 At the loading port it is on seller’s account.

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 16.2 At the discharging port it is on buyer’s account.

17. IMPORT FACILITIES, DOCUMENTS, TAXES AND FEES

17.1 All taxes or levies imposed by the country of destination having any
effect on this contract are on the buyer’s account and his sole
responsibility.
17.2 Buyer must have all import permissions and permits in writing, and
copy sent to seller.
17.3 Buyer bears the sole responsibility of securing all permits, licenses
or any other documents required by the government of the
importing nation.
17.4 Seller will bear no responsibility to provide such documentation.
17.5 Buyer will bear all costs associated with securing such documents
and will also bear all costs and penalties if such documents are not
secured.
17.6 In no case shall the seller be held liable for missing or improper
documentation the buyer is required to provide. Shipping based on
Incoterms 2000. Commento [cg15]: taxes and fees

18. FORCE MAJEURE

Neither party to this contract shall be held responsible for breach of contract caused
by an act of god, insurrection, civil war, war, military operation or local emergency.
The parties do hereby accept the international provision of “Force Majeure” as
published by the international chamber of commerce, Geneva, Switzerland, and as
defined by I.C.C. rules uniform customs and practice. Commento [cg16]: force majeure

19. DISPUTES AND ARBITRATION

The parties hereby agree to settle all disputes amicably. If settlement is not reached,
the dispute in question shall be submitted and settled by arbitration at the
International Arbitration Association Chambers in Geneva, Switzerland by one or
more arbitrators appointed in accordance with said rules and regulations and the
losing party will pay the arbitration fee. The findings of the arbitration shall be
considered as final, irrevocable and binding upon both parties. Commento [cg17]: dispure resolutions

20. AUTHORITY TO EXECUTE THIS CONTRACT

The parties to this contract declare that they have full authority to execute this
document and accordingly to be fully bound by the terms and conditions.

21. EXECUTION OF THIS CONTRACT

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This contract may be executed simultaneously in two or more counterparts via
electronic (email) or facsimile transmission, each of which shall be deemed as
originals and legally binding.

22. GOVERNING LAW

This contract shall be governed, and interpreted in accordance with the united
nation convention for the sale of goods (U.N. Convention). In event of Commento [cg18]: reference to CISG
inconsistency between this contract and the provisions of the U.N. Convention, this
contract shall have priority for the purpose of article 39 of the U.N. Convention a
reasonable period of time shall be deemed to be five (5) days. This contract shall
further be construed in accordance with the courts of the European Union, which
shall apply to ICC rules and regulations.

23. LANGUAGE USED

The English language shall be used. Commento [cg19]: language

24. ASSIGNMENT

This agreement is assignable and transferable by the seller, without prior written
permission of the other party.

25. NON-CIRCUMVENTION AND NON-DISCLOSURE

The parties accept and agree to the provisions of the International Chamber of
Commerce, Geneva, Switzerland for non-circumvention and non-disclosure with
regards to all and everyone of the parties involved in this transaction and contract,
additions, renewals, and third party assignments, with full reciprocation for a period
of (5) five years from the date of execution of this contract. This clause is extensive
to all subsidiaries and or affiliated companies. It is further agreed that any
information of buyer and seller contained in this agreement is to be held in the
strictest confidence, and any violation of which will resolute in the immediate
cancellation of this agreement.
26. PROCEDURES

1. The seller, after discussing and finalizing all amendment with the
buyer on phone or via fax or e-mail, amends where necessary the
contract, and signs, seals and issues to the buyer a final copy of the
contract for its completion.

2. The buyer reviews the final contract and upon acceptance signs the
final copy contract and returns it to the seller. If further revisions are

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 required they are noted and sent back to the seller for further review.
Any facsimile or electronic copy shall be considered as the original.

3. Upon receipt of the accepted signed and sealed final contract from
the seller via fax or email, buyer will print a copy of the contract as a
hard copy, sign it and return it to us. Seller will then send three (3)
hard copies to the buyer of their final contract signed and sealed.

4. Before the payment instrument is transferred to a designated

mandate holder account the text of the payment instrument must be
reviewed and approved by a representative of Equity Business
Trust and/or the Seller and notification of approval shall be sent to
the buyer.

5. The non-operative irrevocable prime bank letter of credit is

issued, confirmed and guaranteed by a top world prime bank
acceptable to the seller, in accordance with the agreement within 7-
international banking days of signing and exchanging this agreement
and from receipt of the irrevocable prime bank guarantee in
accordance with this agreement, the seller’s bank will issue to the
buyer’s bank the proof of product by Swift MT 700 that will activate
the letter of credit.

6. Within 10-international banking days of the receipt, verification and

authentication of buyer’s irrevocable prime bank guarantee at seller’s
bank, the seller will issue a 2% performance bond for the value of the
monthly shipment.

7. Delivery and shipment shall commence after the fulfillment of the

procedure, stated above, as per the terms and conditions of this
contract.

27. AGREEMENT TO TERMS

27.1 Signatures on this agreement received by the way of facsimile, mail

and /or e-Mail shall be an executed contract. Agreement
enforceable and admissible for all purposes as may be necessary
under the terms of the agreement.

27.2 All signatories hereto acknowledge that they have read the
foregoing agreement and by their initials and signature that they
have full and complete authority to execute the document for and
in the name of the party for which they have given their signature.

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 27.3 Electronic signature is valid and accepted as hand signature,
EDT (electronic document transmissions)

Fourteen months and sixteen (16) days. Includes first thirty to forty five days where
shipment is being prepared;

27.4 If any party to this agreement should make unauthorized contact

with the bank of the seller or the buyer, such contact shall be
considered interference with the agreement and shall at the option
of the buyer or the seller, constitute valid reason to terminate this
agreement. The interfering party will be charged with the loss of
profits in this transaction by the injured party who will be entitled
to file legal proceedings against the interfering party at the
international chamber of commerce at Paris, France to recover their
losses.

27.5 The buyer agrees to open the bank guarantee according to the
payment schedule within five (5) days after signing of the final
contract, and if the letter of credit is not opened than the buyer
shall pay to the seller a fee equal to two percent (2%) of the full
contract value within fifteen (15) calendar days of default

27.6 We also confirm that said funds are good clean, cleared
unencumbered, legitimately earned and of non criminal origin

27.7 Any changes made in the contract that are not initialed will make
the contract null and void.

BY SIGNING ON THE SIGNATURE PAGE THE PARTIES HEREBY

ENTER INTO THIS AGREEMENT PROVIDED THAT THE
ACCEPTANCE EXPIRATION DATE ON THE FULL CORPORATE
OFFER HAS NOT PASSED PRIOR TO SIGNATURE.

SIGNATURE PAGE

Witness whereof, the parties hereto do set their hands and are witnessed
with seals upon this Commodity Contract as of the following date:

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Seller Signature: Buyer Signature:
FOR SELLER: FOR BUYER :
DATE: ____________ 20__ DATE: ______________ 20__
SELLER DETAILS: BUYER DETAILS:

Company Name:
Reg no.:

Adress:

FAX: +
FAX: MOBILE: +
MOBILE: EMAIL:
EMAIL:

WITNESS: AGENT:
General Manager: MANDATE HOLDER DETAILS:

‘___’
Reg no:

Tel: +1-
Mobile: Mobile: +

Email: Email:
DATE: ______________ DATE: _________________

APPENDIX “1”

BANKING INFORMATION

SELLERS BANKING INFORMATION

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 APPENDIX “2”

DELIVERY SCHEDULE

1. Delivery:

Delivery of Portland Cement 42.5 will commence no later than 45 days after the
acceptable operative payment instrument is received at the Seller’s bank.

2. Transport:

All supervision and fees or levies at the port of loading are for the Seller’s account.

Vessel must be classified as 100-A-1 in the Lloyd’s Register or be of an equivalent

classification and must not be older than twenty (20) years.

Vessel should be certified cargo hold cleanliness / suitable to load.

Not later than seventy two (72) hours from the completion of loading, the Seller’s
agent shall telex, fax or cable the Buyer and inform him of the vessel’s sailing date
and the expected time of arrival at the port of destination. Seller shall also inform
the Buyer of the vessel’s name, vessel’s capacity, number of hatches, number of
cargo and particulars of the vessel’s readiness to effect operations through all
hatches and at completion of loading the quantity loaded per chamber and the
quantity shipped.

3. Vessel Discharge

The vessel’s Master is to advise the Buyer’s agent at port of discharge the vessel’s
name, date of arrival, vessel capacity, number of hatches / number of cargo
chambers, quantity loaded per cargo chamber and the particulars of the vessel’s
readiness to effect cargo operations through all hatches.

Lay time shall commence from 1.00 PM if vessel’s notice of readiness to discharge is
given prior to noon and from 8.00 AM of the next working day if notice is given

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after noon. If the port is congested, then lay time is to commence twenty-four (24)
hours after notice of readiness is given. The Buyer is responsible for the product
discharge.

The average discharge rate shall be 1,500 MT for bagged product at 5,000 MT for
bulk product per weather working day of twenty-four (24) hours. If the port of
discharge has a lower average discharge, the discharge rate will be adjusted
according to the port’s capacity. The times form 5.00 PM on Saturday to 08.00 AM
on Monday and from 5.00 PM on the day proceeding to 08.00 AM on the day
succeeding any holidays are excluded even if used.

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