GDPC OFFER-2019.01.22

[dkchoi]

Dear Choi,

See below terms and condition of offer for Green Petcoke:

1. Seller: Lumieres Innovations Inc.

2. Buyer: DK INTERNATIONAL CO

3. Product & Origin:
Petroleum Coke in Bulk of US Origin

4. Quantity:
50,000 metric tons +/-10% tolerance in Seller’s option

5. Loading Laycan:
Tentative loading laycan: Q1 2019
Final 10 days laycan in Seller's option

6. Incoterms:
CFR as per Incoterms® 2010

7. Discharging Port(s)
1sp 1sb Pohang Port, South Korea

8. Quality

Unit	Typical	Rejection
Total Moisture (ARB)	%	< 12
ASH (ARB)	%	< 1.0
Volatile Matter (ARB)	%	9 - 12
Sulfur (ARB)	%	< 6.5
HGI	-	> 36

The parties acknowledge and agree that the Product sold pursuant to this contract is produced as a by-product of the oil refining process, the Product's characteristics can vary depending on the refinery crude slate and operations of the refinery and the Seller has no control over the Product's quality which is at the sole discretion of the refinery.

9. Base Price
USD 120.00 per metric ton CFR Discharging Port(s)

10. Quality Adjustments


No other premium/penalty shall apply

11. Payment
Payment against an irrevocable documentary letter of credit at sight (LC) covering 100% of the commercial invoice value and issued by a first class bank acceptable to the Seller. The LC shall be payable at sight against presentation of the following documents at counters of the Seller's bank:

1.       Commercial Invoice

2.       Bill of Lading (Charter Party B/L, clean on Board made out to order and blank endorsed marked “freight payable as per Charter Party”)

3.       Certificate of sampling and analysis

4.       Certificate of weight

5.       Draft Survey Report

 

·         LC to be opened latest 14 days prior to the first day of the laycan. In case of any delay demurrage risk for Buyer's account and Seller has the option to sell cargo elsewhere

·         LC tolerance in amount of +/-10%

·         LC to be available with and payable at any Seller's Singapore, German, Canada or Swiss bank: Place of expiry Singapore, Germany, Canada or Switzerland

·         Documents presentation latest within 30 days after B/L date, Validity of LC 45 days after BL date

·         Third party documents are allowed

·         Each Party is responsible for their own bank fees

·         TT Reimbursement Clause to Apply

·         Draft L/C to be submitted to the Seller immediately after signing the contract for confirmation

·         No sanctions clause allowed in LC

12. Quality & Quantity Determination
Quality and Quantity shall be determined at the Loading port by an internationally acknowledged Inspection Company as appointed and paid by the Seller.
Quantity will be determined by means of draft survey of the vessel. BL-Weight will be final and binding for both parties and basis for invoicing.

13. Shipping Terms

·         Buyer to guarantee a discharging rate of: 10,000MT PWWD SHINC

·         Buyer to guarantee a minimum arrival draft at the Discharge port of 13.00 meters at any time (SW)

·         Demurrage/Despatch as per relevant charter party, to be provided during vessel nomination

·         NOR Tender 24HRS ATDN SHINC WIPON/WIBON/WIFPON/WCCON

·         Turn Time (TT) 12HRS unless sooner commenced (USC)

·         Demurrage/Despatch to be settled within 15 days after vessel sailing from loading port

14. Other Terms

·         English law and LCIA arbitration with London seat to apply

·         Buyer and Seller shall keep terms of this offer strictly private and confidential

15. Offer Validity
This offer is of indicative nature only and can be turned into a firm offer upon request and subject to Seller's reconfirmation.

***

 

This is a trial order. If customer is satisfied with quality, we can enter into an annual contract. Looking forward to your positive feedback.

 

Best,

Ehab