Vannamei Shrimp Size 50 / 60
We offer 40, 000 KG per month over a 12 month period.
SOFT OFFER 480,000 Kg / November 12th 2008
We, .NORMED, confirm with full legal responsibility and under penalty of perjury that we are ready, willing and able to sell the following COMMODITY, on behalf of the Seller, on the following terms and conditions:
Commodity: Vannamei Shrimp Size 50/60
Origin: The origin of the COMMODITY will be from ECUADOR Exclusively
Quantity: 480,000 Kg (FOUR HUNDRED EIGHTY THOUSAND KILOGRAMS)
Contract period: 12 months
Destination: CIF, ASWP
Shipments: 40,000 Kg
Target Price: US$ 6.00/ Kg CIF ASWP
Total Value: US$ 2,880,000 (TWO HUNDRED EIGHTY EIGHT THOUSAND UNITED STATES DOLLARS)
Payment: Payment of the Agreement quantity of 40,000 Kg of the total quantity of 480,000 Kg shall be effected by a Monthly Revolving Transferable Letter of Credit to Sellers bank from Buyers bank for the monthly contract value and these payment terms will be guaranteed through a Irrevocable Prime Bank Stand-by Letter of Credit for the value of US$ 240,000 (TWO HUNDRED FOURTY THOUSAND UNITED STATES DOLLARS). The Irrevocable Prime Bank Stand-by Letter of Credit and the Monthly Revolving Transferable Letter of Credit should be issued at the beginning of the contract period.
Performance Bond: 2.0% (Two Percent) of the value of the Irrevocable Prime Bank Stand-by Letter of Credit.
Initial Shipment: Within 30-45 days after the financial instruments are in place at Sellers bank and, thereafter, according to the Agreement schedule.
Packing: In 2kg Boxes.
Inspection: By SGS or equivalent at port of loading at Sellers cost.
ARTICLE 13: AGREEMENT PROCEDURES
13.1. Preliminary procedures
NCNDA is signed by parties involved.
BUYER / BUYERS MANDATE issues LOI or ICPO with quantity demand, target price, contract length, banking information, and all other details involved freshly dated and signed.
................. issues SOFT OFFER freshly dated and signed.
BUYER signs SOFT OFFER (on each page) and returns it to ....... along with a BCL (or similar banking contribution) within the documents validity deadline
SELLERS REPRESENTATIVE issues FCO to Buyer via ........ freshly dated and signed.
BUYER returns FCO signed (on each page) and returns it with BANK ENDORSEMENT to .......... freshly dated and within the documents validity deadline.
SELLER issues DRAFT CONTRACT to Buyer via ........... freshly dated and signed
Within 3-international banking days from receipt of the Sales Agreement by the Buyer, the Buyer signs, seals and stamps the Sales Agreement, and return it to Seller for his signature, sealing and stamping.
Within 3-international banking days from receipt of the Agreement from Buyer, duly signed, sealed and stamped by the Buyer, the Seller will sign, seal and stamp the Agreement and issue to the Buyer the AFFIDAVIT as per this Agreement.
Within 3-international banking days of signing and exchanging the Sales Agreement and from receipt of the AFFIDAVIT from Seller to Buyer, the Buyers Bank will issue in favour of the Seller the Irrevocable, Prime Bank, Stand-by, Letter of Credit as per Article 13A of this Agreement and to the value US$ 75,000,000 (seventy five million United States Dollars) and the Operative, Transferable, Revolving, Letter of Credit.
The Irrevocable, Prime Bank, Stand-by, Letter of Credit and the Operative, Irrevocable, Transferable, Revolving, Letter of Credit is issued, confirmed and guaranteed by a Top World Prime Bank acceptable to 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, Stand-by, Letter of Credit and the Operative, Irrevocable, Transferable, Revolving, Letter of Credit in accordance with this Agreement, Sellers Bank will issue to Buyers Bank the Proof of Product by SWIFT MT 799.
Within 10-international banking days of the receipt, verification and authentication of Buyers Irrevocable, Prime Bank, Stand-by, Letter of Credit and the Operative, Irrevocable, Transferable, Revolving, Letter of Credit at Sellers Bank, the Seller will issue a 2% Performance Bond for the value of the Irrevocable, Prime Bank Stand-By Letter of Credit and the Operative, Irrevocable, Transferable, Revolving Letter of Credit. .
The initial shipment of 12,500/mt or 25,000/mt product loads within 30-45 days from the date of receipt, verification and authentication of Buyers Irrevocable, Prime Bank, Stand-by, Letter of Credit for total funds of US$ 75,000,000 (seventy five million United States Dollars) and the Operative, Irrevocable, Transferable, Revolving, Letter of Credit at Sellers bank, and continues until the Agreement quantity is shipped and delivered.
Payment will be released to the Seller upon negotiation of shipping documents at the Sellers bank. Partial shipments are allowed.
Within 21-days of Buyer and Seller signing the Agreement, the Buyer will advise the Seller in writing the particulars of the discharge ports relevant to this Agreement.
The Buyer is aware and commits to provide the Bank Endorsement either issued or confirmed by a Top Prime Bank as per text attached in Article 14B along with the signed and sealed FCO.
It is not part of the procedures to request any kind of samples or factory visits since all relevant documents will be provided with each shipment.
The Buyer is aware that the Seller does not provide any past performance documents since this is confidential between the parties involved and has no value for his capacity to deliver the contracted quantity in the future.
The contract signed by both parties electronically is legally binding acc to ICC rules. Hardcopies are not part of the procedures. If the Buyer requests Hardcopies then he has to print the hardcopies sign and seal each page and send the copies per Courier to the Seller for his signature. The seller will then return the 2-3 Hardcopies to the Buyer by courier.
It is understood that only the contract in English language as issued by the Seller is valid.
Disclaimer: ...................... does not in any way misrepresent themselves as the direct Seller of the allocations, we offer a risk adverse environment to both the Buyer and Seller and facilitate the successful closure of the deals. Full responsibility will at all times remain the prerogative of the Buyer and Seller.
FCO has to be signed on each page by the Buyer.
The Bank Endorsement and the Financial Instruments have to be confirmed by the Confirming Bank in case the Buyer is not a Top 100 Bank.