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NICKEL SALES AGREEMENT
Date: 【 】
Contract number: 【 】
This Agreement is entered into between Seller and Buyer whereby Seller sells and Buyer purchases the Material on the following terms and conditions:
Seller Seller’s notice address and contact information Buyer Buyer’s notice address and contact information Material BHP Billiton Briquettes, LME-registered and conforming to the ASTM B39-79 specifications, Rejectable if Nickel content below x% Packaging Non-returnable 2 MT bags Quantity Approximately 500 metric tons (“MT”). The seller will be allowed to do multiple deliveries. Deemed Delivery Month April 2009 Tolerance +/- 5%, at Seller’s option. Port of Loading Delivery DDU XX, China (as per Incoterms 2000) Partial Shipment and Transshipment Allowed. Origin Pricing Provisional Price:
The Provisional Price shall be based on March 17, 2009’s London Metal Exchange (LME) Cash Settlement price for Nickel plus the Premium.
Final Price / Quotation Period:
The Final Price shall be based on the average London Metal Exchange (LME) Cash Settlement price for Nickel for the Quotation Period plus the Premium. Quotation Period April 6 - 30, 2009 inclusive Premium US$ 60/MT Price Adjustment In respect of each shipment which does not meet the specifications set forth above the price shall be adjusted in accordance with Nickel content as determined pursuant to the provisions of clause 8 of General Conditions of Sale as follows.
BONUS: The price shall be increased by USD xx PMT for each 1% Nickel above xx%, fraction prorata.
PETALTY: The price shall be decreased by USDxx PMT If the Nickel content is below xx% but above xx%, fraction prorata. However, if Nickel content is below xx%, the above price adjustment terms shall not apply and Buyer has the right to reject the cargo. Payment Buyer should open an irrevocable fully workable Letter of Credit issued by a bank acceptable to Seller covering one hundred and twenty percent
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