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AFS-RAIL-LOI-Template

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					  AFSLOIR5065011


                                             Letter of Intent
                                            Company letter head

Date:


TO:         End Seller (Please leave blank)
            Via: Ayzed Financial Services and Global Resources and Services Company LLC


FROM:

BUYER’s

Principal’s Name:

Last Name:

Telephone:

E-mail:


COMPANY NAME:

Street Address:

City:

State (If Applicable):

Country:

Company Web Site:

Company Registration #:


We, XXXXXXXX hereby confirm with full corporate responsibility that we are ready, willing and able to
enter into a purchase contract for the following commodity as per the quantity, price, specification,
terms and conditions stated below. The funding is available, including any import permits, licenses etc.
Needed to fulfill this purchase obligation.

COMMODITY:                             Used Rails R50-R65
PRICE PER METRIC TON:                  US$xxxxxx (xxxxxxxxxxxxxxxxxxxx) per metric ton
PERIOD OF SHIPMENTS:                   12 (Twelve) Months with possible rolls and extensions.
TOTAL CONTRACT PRICE:                  $xxxxxxxxxxxx (xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx)
CONTRACT QUANTITY:                     xxxxxxxxx (xxxxxxxxxxxxxxxxxxxxxx) Metric Tons
                                       (+/-5%) Confirmed Quantity
PER SHIPMENT REQ’D:                    xxxxxxxxxxx (xxxxxxxxxxxxxx) Metric Tons (+/-5%) Confirmed
                                       Quantity


        WARNING: This document is intended for the above mentioned single recipient and not for distribution

                                                     Page 1 of 4
 AFSLOIR5065011


SHIPMENT METHOD:                     Bulk
COUNTRY OF ORIGIN:                   Europe, Russia, Ukraine, or Americas at Seller’s Choice
PORT OF DEPARTURE:                   Seller’s Choice
PORT OF DESTINATION:                 CIF, AWSP: xxxxxxxxxx Delivery Port in the country of xxxx
UNLOADING RATES:                     TBD MT per Day
INITIAL DELIVERY TIME:               30/45 days after receipt and acceptance of the L/C
INSPECTION AGENCY:                   SGS at the port of loading
DOCS REQ’D FOR PAYMENT:              Bill of Lading, Commercial Invoice and other documents to be
                                     specified in the contract.
TYPE OF CONTRACT:                    CIF AWSP
VALIDITY:                            The validity of this LOI to be 5 international banking days from the
                                     issuing date of LOI
METHODS OF PAYMENT:                  A DLC for the first month’s shipment of xxxxxxxxxxxMT that is
                                     irrevocable, operative, transferable, confirmed and revolving
                                     automatically 11 times; plus US$60,000 refundable subsidy deposit
                                     payment. The DLC has to revolve automatically 11 times for the
                                     same value until the entire product quantity of xxxxxx MT of the
                                     contract is shipped. This language “This LC is automatically
                                     revolving 11 times for the same until the entire contract quantity of
                                     xxxxxxx MT is shipped” has to appear on the LC.

PROCEDURES:           Must be included verbatim in the LOI
                                   1. Buyer issues LOI with banking coordinates and permission for
                                      soft probe.
                                   2. Seller accepts/rejects after initial due diligence.
                                   3. Upon acceptance of LOI, Seller issues draft contract.
                                   4. Contract is signed by Buyer, returned to Seller for his signature.
                                      (Electronically executed copies of the contract are legal and
                                      acceptable.
                                   5. Contracts are lodged with Buyer’s and Seller’s banks.

                                     6. Within 5 International banking days of the contract’s execution,
                                        Buyer issues draft text of the financial instrument to Seller for
                                        review and approval.
                                      7. Buyer will issue the US$60,000 refundable subsidy deposit
                                        payment via TT into the corporate account of the Seller. It will
                                        be refunded via TT to Buyer’s bank account after the sixth month
                                        shipment. At the same time, Buyer’s bank issues the Irrevocable,
                                        Operative, Transferable and Confirmed DLC to Seller’s bank.
                                     8. Within 10 international banking days of receipt of the
                                        refundable subsidy deposit payment, via TT in the bank of the
                                        Seller and the Irrevocable, Operative, Transferable and
                                        Confirmed DLC, Seller arranges for the issuance of the 2%
                                        Performance Bond (PB) and Proof of Product (POP) to be sent to
                                        Buyer’s bank. This exchange will be done on a bank to bank
                                        basis from the bank of the commodity owner.
                                     9. Shipments commence as per contract schedule.




      WARNING: This document is intended for the above mentioned single recipient and not for distribution

                                                   Page 2 of 4
  AFSLOIR5065011


SPECIFICATIONS:                         Used Rails R50-R65

                                      Chemical composition
C                                 0, 54-0, 82
Si                                0,18-0,40
Mn                                0,60-1,05
S                                 0.04 max
P                                 0,035 max
As                                0,01 max of mass share
Norms                             R-50 GOST 7173 and R-65 GOST 8165
                                      Physical composition
The scrap is consists             R-50 (51,67 kg/m) R-65 ( 64,72 kg/m ) Used Rail
                                  Rail, Steel No. 1.Standard section tee rails, original weight 50
                                  pounds per yard or heavier, 10 feet long and over. Suitable for re-
                                  rolling into bars and shapes. Free from bent and twisted rails, frog,
27
                                  switch, and guard rails, or rails with split heads and broken
                                  flanges. Continuous welded rail may be included provided no weld
                                  is over 9 inches from the end of the piece of rail.
                                  Rail, Steel No. 2 Cropped Rail Ends. Standard section, original
28A
                                  weight of 50 pounds per yard and over, 18 inches long and under.
                                  Rail, Steel No. 2 Cropped Rail Ends. Standard section, original
28B
                                  weight of 50 pounds per yard and over, 2 feet long and under.
                                  Rail, Steel No. 2 Cropped Rail Ends. Standard section, original
28C
                                  weight 50 pounds per yard and over, 3 feet long and under.
                                  Rail, Steel No. 3.Standard section tee, girder, and/or guard rails, to
                                  be free from frog and switch rails not cut apart, and contain no
29
                                  manganese, cast, welds, or attachments of any kind except angle
                                  bars.
Note                              Free from concrete, dirt, and foreign material of any kind

BUYER’S – COMPLETE BANKING DETAILS: (ALL BANKING DETAILS MUST BE PROVIDED)
(Buyer’s Bank must be Top 50 World Bank, If not a Top 50 World Bank; Buyer’s confirming
bank details must also be provided)

BUYER’S BANK:

Bank Name:
Bank Address:
Bank Contact:
Telephone Number:
Fax Number:
Account Holder:
Bank Account Number:
ABA or SWIFT Code:

BUYER’S CONFIRMING BANK:

Bank Name:
Bank Address:
Bank City, State, & Zip:


        WARNING: This document is intended for the above mentioned single recipient and not for distribution

                                                      Page 3 of 4
  AFSLOIR5065011


Bank Country:
Bank Contact:
Telephone Number:
Fax Number:
Account Holder:
Bank Account Number:
ABA or SWIFT Code:

SOFT PROBE AUTHORIZATION:

The Buyer understands that any offer or contract is subject to the successful seller verification of the
availability of funds for this contract. We, XXXXXXXX hereby give our written authorization and
permission for the Seller or his agent to conduct a Soft Probe of the Buyer’s Bank Account provided, to
verify the availability of the funds for this transaction.

INSPECTION: Inspections will be performed by SGS International Inspection Agency at the port of
loading.

PERFORMANCE BOND and POP:

The Seller will arrange for the issuance of the POP and a 2% Performance Bond to provide all the
documentation stipulated in the contract. The Bond and the POP will be issued within 10 Banking Days
after receiving the operative transferable Letter of Credit at the Sellers Bank.

EXCLUSIVE LOI:

This LOI is the only current active LOI and has been exclusively offered to Seller for the release of their
Contract. This LOI voids any and all other LOI’s currently in circulation for the above quantity and
commodity.

I, __(Principal’s Name)__ hereby declare that all information referenced to our company
_(Company Name)_ and its principals as well as our stated intent to purchase the said
commodity provided in this communication is true and correct and we, as the company
further request to engage in a formal contract regarding this transaction.




XXXXXXXXXXXXXX


__________________________________________
Name: xxxxxxxxxxxxxxxx
Title:
Date:
 (Document must be Signed and Sealed by the Buyer)


SEND COMPLETED FORM to Scrap@ayzed.com




       WARNING: This document is intended for the above mentioned single recipient and not for distribution

                                                    Page 4 of 4

				
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