Date: 22/03/2012



Sales and purchases will be based on the following procedures.
Commodity: Used Rail
Specifications: As seen Annexure 1
Origin: South Africa
Packaging: As per buyer's preference (cut and containerize or uncut)
Delivery: GLOBAL DESTINATION

Inspection: SGS/ALEX STEWART Delivery Terms: CIF EX-YARD Price: USD: $360/MT
Quantity: 20,000MT-90.000 MT per 12 months
Performance bond (PB): 2% (Performance bond is agreed to be -2 %.) naming buyer as beneficiary.
Certificate AQISQ

PAYMENTS: 0.02% deposit required for processing of materials to shipment level and
99.98% LC will be against BL and upon arrival of materials in buyer destination port.

PROCEDURES
Buyer Issues LOI as per Annexure 2 these documents should be sent via email or fax. Seller issues first Draft contract
Buyer Amend if any amended Seller issues final contract Buyer and Seller Signs contract
Buyer can visit to see the goods at the port of loading (Durban port)
Buyer opens Non operative Instrument BG, SBLC, DLC (to be agreed on upon as per contract) and seller Provide Letter from Shipping line stating that seller has finalized with them as per freight (buyer can Chose to use a shipping company of his choice)
Seller delivers the Product to Shipping Company Vessels
Seller presents all documents as well as contract and Payment Instrument.



ANEXTURE 1
Commodity: USED RAIL SPECIFICATION: R50-R65