SALES DRAFT CONTRACT

HMS1/2 (80:20) ISRI 200-206

Date of issue :
Validity date :
Buyer :
Address :
Phone :
Fax :
Signatory :
Supplier’s Ref :

WHEREAS

The parties hereto mutually accept to refer to the General Terms and Conditions for the sales, purchase and export of X,000

(XXX thousand) metric tons of HMS1&2 (80:20), having the following terminology fully understood and accepted as here

below. The seller has the legal right to title and conveyance of the product referred to herein below and hereby sells such

products, and buyer is ready willing and capable to purchase the said product subject to the terms and condition of this

agreement.

NOW

Therefore the parties agree as follows; it is being understood that each group may be referred to herein as individually or

group or as “Party” or collectively as “Parties.”

DEFINITIONS:

Metric Ton (MT): A measure of weight equivalent to one thousand Kilograms mass (1,000 kg).

Commodity or product: Is referred to as HMS1/2 (80:20), elsewhere in this agreement also referred to as scrap, whose

specifications are detailed herein.

Day: Means calendar day, unless differently specified.

Month: Means Christian calendar month of 30 – 31 days

Bill Of Lading: Is the official document, issued at the loading port after completion of the loading operations, stating the ships

loaded quantity expressed in metric tons (MT). This document has to be signed in original by the ship’s master and made out

in accordance with the instructions hereinafter specified in this contract agreement.

CFR: Cost and Freight which is strictly referred to in the Intercoms Edition 2000 with the latest amendments.

AND

Whereas, the parties hereto mutually desire to execute this agreement which shall be binding upon and in are to the benefit of

the said parties, their legal representatives, successors and assigns, in accordance with the jurisdictional law of the negotiated

and fully executed contract agreement on the terms and conditions stipulated herein:

Contract Ref: UR_XX_XXXX/ XX X,000MT * USDXXX

CLAUSE 1- SCOPE OF CONTRACT

The supplier and the buyer, with full corporate authority and responsibility, respectively represent and warrant that one part

is the lawful mandate seller of the Commodity, in quantity and quality as herein specified, and the other part as the potential

buyer who has the full capability to purchase, receive and pay for the sold and delivered Commodity.

CLAUSE 2- COMMODITY

2.1 Commodity:

HMS1/2

2.2 Specifications and Quality

Refer Appendix 1.

2.4 Consignments are free of Contamination, radiation and explosives.

Clause 3 - Quantity

3.1 Total Quantity: X,000(XXXX thousand) Metric Tons +/ 5% at seller’s option for the first delivery. And when the two parties

will be happy for this delivery, they can sign another agreement for large quantity depending on the buyer request.

Clause 4 - Origin and Port(s) of Loading

4.1 Origin: Mexico

4.2 Loading Port: Ensenada or Mansanillo Port

Clause 5 - Packing

5.1 In 20 feet container

Clause 6 - Shipment/Delivery

6.1 The shipment will be for one time delivery of X,000 MT +/- 5%
6.2 This shipment will be shipped within [35] days from the date of L/C to be opened for this contract. The shipments will

arrive no later than [45] days from date of B/L.

6.3 Partial shipment is allowed, but at least ten [10] containers per lot.

6.4 Transshipment is allowed.

Clause 7 - Contracted Price and Value

7.1 Unit Price: US$XX0.00 (US Dollar XX hundred ) per Metric Ton,

7.2 Total Value of this Contract US$XX0,000.00 +/-5% (US Dollars XX Hundred XX Thousand only) x XMonth
Clause 8 - Destinations and Discharges

8.1 Discharge ports:

Contract Ref: UR_XX_XXXX/ XX X,000MT * USDXXX

8.2 Marine Insurance: To be covered by the Buyer’s account, if buyer wants shipping term CIF.

8.3 Upon completion of the loading. The Seller shall send the Buyer the Shipping Advice with the contract number, name of

the commodity, weight, name of the carrying vessel, B/L number and date, and estimated date of arrival [ETA] at port of

discharge by fax and/or e-mail within three (3) working days from B/L date.

8.4 Sundays and Holidays will not be counted for Demurrage and will not be counted as lay time due to heavy rain, snow and

storm.

Clause 9 - Transaction Payment Terms

9.1 For the first shipment, payments is to be made by an Irrevocable, Documentary, Transferable or Non Transferable L/C.

payable 100% at sight upon presentation of full set of documents stated in clause 11 below.

10. Clause 10 - Banking Information

10.1 Buyer’s Bank Details

Bank Name

Bank Address

Bank Telephone No. +

Bank Fax +

Account Holder Name

Bank Account Number

Bank SWIFT Code

Opening Bank Details

Company Bank

Bank Address

Bank SWIFT Code

Account Number

Account Holder

10.2 Seller’s Bank Details

Bank Name

Bank Address

Bank Telephone No.

Bank Fax -

Account Holder Name

Bank Account Number

Bank SWIFT Code / Sort Code

11. Clause 11 - Documents to be presented for payment

Contract Ref: UR_XX_XXXX/ XX X,000MT * USDXXX

11.1 Supplier shall present the following documents to the Seller’s nominated negotiating bank for payment:

Signed Commercial Invoice indicating Contract Number, and L/C Number, Vessel Name, Quantity and the total Amount of

Value of the delivered Commodity - three (3) Originals and Four (4) Copies

Packing List, Showing Total Weight, Contract Number and L/C Number - Two (2) Original and Four (4) copies；
Full (3/3) set of Original of Clean on Board Bill(s) of Lading marked “freight prepaid” showing total actual gross/net weight

shipped, signed by Master of Vessel made out to order of issuing bank and notify the Applicant as indicated in the relevant

Letter of Credit

Certificate of Origin, issue by Mexico Government - One (01) original and two (02) copies

One (01) copy of fax/telex from the Seller advising shipment details to Buyer within

02 working days from B/L's date including: name of commodity; quantity/weight; value; B/L number; number of contract; date

of shipment; date of vessel's departure; ETA destination.

All documents must be in English.

11.2 The following Documents must be sent to buyer by fax or Email in advance within 7 working days after shipment, and

then Supplier also must send them to below address by DHL or by express mail service;

a. One original Commercial Invoice.

b. One original Packing List.

c. One copy of Bill of Lading.

d. One copy of certificate of origin.

- All documents must be in English.

- Third party documents are acceptable except Bill of Lading, Invoice and Draft.

12. Clause 12 - Insurance

12.1 Insurance will be covered by the Buyer (if buyer wants)

13. Clause 13 - Inspection

If Selling quality and quantity is different with buyer order, buyer can complain and solve problem with seller.
Also if recognized that quality and quantity are different in public, buyer can do moratorium.

14. Clause 14 - Advice of Shipment

14. Seller shall provide by Fax and E-mail message to the Buyer, advising the shipment details within three (3) working days

before shipment.

15. Clause 15 - Force Majeure

15.1 The Force Majeure Clause of the ICC Standard shall apply to this Contract.

15.2 Seller/Buyer shall not be liable for the failure to perform the obligations under this Contract where such Force-Majeure
Circumstances are occurred.

15.3 Seller/Buyer shall notify Buyer/Seller immediately by Fax and e-mail within 15 days from the occurrence of Force Majeure

Contract Ref: UR_XX_XXXX/ XX X,000MT * USDXXX

Circumstances with a Certificate of the occurrence issued by the Local Government Authorities or Chamber of Commerce.

15.4 In the event of Force Majeure Circumstances causes a continuing and delaying of each

shipment beyond one (1) month from the contracted delivery date, the Buyer shall have the option to cancel that shipment;

hence in such event no penalty shall be claimed by either Party against the other.

16. Clause 16 - Claim

If there is any difference in weight/quantity or quality between net weigh in B/L and in reported by any inspection company

at discharge port, the Buyer will lodge claim enclosing original report of any inspection company.

Survey Report to the Seller within 30 working days from discharging completion date. The Seller has to settle the Buyer’s

claim within 40 working days after receiving the claim documents.

Impurity and off-grade will be deducted directly from total net weight.

Oversize to be reduced USD 15/MT in above mentioned price.

Weight franchise allows 0.2%, if the shortage weight is over 0.2%, the Seller has to pay back the Buyer for the shortage

(including 0.2%) accordingly.

Supplier shall have the right to send their Representatives to determine the Validity of the Claim within 15 days upon receipt

of the Claim.

17. Clause 17 - Delayed delivery and penalty

Should the seller fails to effect on time as stipulated in this contract owing to causes other than force majeure as provided in

clause force majeure of this contract, the seller shall lost his performance bond, and it shall be automatically transferred to the

buyer’s account by the banking system. In this case the buyer has the right to cancel this contract.

18. Clause 18 - SUPPLIER LIABILITY

Goods shall be considered in “full quantity” if it is delivered in total within tolerance provided under clause 3 - Quantity of

this contract and within the time as stated in clause 6 - Shipment/ Delivery

If Seller fails to deliver full quantity, only with the confirmation from the buyer, he has the obligation to make it complete with

the next shipment. The buyer will only be paid for what is delivered at the time.

19. Clause 19 - BUYER LIABILITY

To make payment in target dates for the shipment, payment shall be effected by or within 14(fourteen) banking days after

receipt by the advising bank of all documents required under clause 11.1.

20. Clause 20 - Arbitration

All disputes arising from the execution of this agreement shall be settled through friendly consultation, and in case where no

settlement can be reached, the case in dispute shall be submitted to International Arbitration Centre, Mexico in accordance

with its rule of arbitration for settlement. The decision made by this arbitration centre shall be regarded as final and binding
upon both Parties. Arbitration fees shall be borne by the losing party unless otherwise awarded.

Contract Ref: UR_XX_XXXX/ XX X,000MT * USDXXX

21. Clause 21 - General condition

21.1. This contract consists of a total of Fifteen (21) Clause and is considered Valid from the Date of Signing by Buyer and

Seller

21.2 Any changes of the Terms and Conditions of this Contract must be in written form and added as an Addendum upon

agreed, signed and dated by both parties shall be considered as an integral part of this original Contract.

21.3 The contract is made in English which shall be regarded as the official language of the Agreement.

In witness hereof, the Supplier and the Buyer affix their respective signature and seal accepting all of the terms and conditions

here in which become effective and legally binding hereinafter.

Buyer: Seller:

APPENDIX No. 1

HEAVY MELTING SCRAP SPECIFICATION

The steel scrap consists of a mix of mill scrap (stampings, cuttings, bars, etc.), Industrial scrap (nuts, bolts, misc. pieces, etc),

auto and truck frames and bodies, Railroad scrap (wheels, axles, parts of locomotives and carriages, etc.), ship scrap

(fittings, plate pieces, parts), construction scrap (plate, bars, angle pieces, Rods, steel pipe, etc.) And miscellaneous

commercial scrap (appliance casings, Frames and parts, etc.). Non-metal impurities total 0.3% (point three percent) or less.

All Goods sold by the seller will also be totally free from any types of radiation, Bombs, arms and ammunition, mines, shell,

cartridges, sealed containers, gas Cylinders, explosive shells or explosive materials in any form either used or Otherwise as per

the ISRI code below:

ISRI CODES: 200-206

ISRI.200 No 1 heavy melting steel. Wrought iron and/or steel scrap 1/4 inch and Over in thickness. Individual pieces not over
60 x 24 inches (charging box size) Prepared in a manner to insure compact charging

ISRI 201 No. 1 heavy melting steel 3 feet x 18 inches. Wrought iron and/or steel Scrap 1/4

Contract Ref: UR_XX_XXXX/ XX X,000MT * USDXXX

inch and over in thickness, individual pieces not over 36 inches x 18 Inches (charging box size) prepared in a manner to insure

compact charging.

ISRI 202 No. 1 heavy melting steel 5 feet x 18 inches. Wrought iron and/or steel Scrap 1/4 inch and over in thickness. Individual

pieces not over 60 inches x 18Inches (charging box size) prepared in a manner to insure compact charging.

ISRI 203 No. 2 heavy melting steel.* Wrought iron and steel scrap, black and Galvanized, 1/8 inch and over in thickness,

charging box size to include Material not suitable as No. 1 heavy melting steel. Prepared in a manner to Insure compact

charging.

ISRI 204 No. 2 heavy melting steel.* Wrought iron and steel scrap, black and galvanized, maximum size 36 x 18 inches. May

include all Automobile scrap properly prepared.

ISRI 205 No. 2 heavy melting steel 3 feet by 18 inches Wrought iron and steel Scrap, black and galvanized, maximum size 36 x

18 inches. May include Automobile scrap, properly prepared, however, to be free of sheet iron or thin Gauged material.

ISRI 206 No.2 heavy melting steel 5 feet by 18 inches Wrought iron and steel Scrap, black and galvanized, maximum size 60 x

18 inches. May include Automobile scrap, properly prepared, however, to be free of sheet iron or thin Gauged material.

APPENDIX No. 2

PROCEDURE

1. The Buyer will issue LOI and full banking information with soft probe.

2. The Buyer visits to the Seller’s yard to check physical commodity and conclude contract with the seller.

3. The Buyer issues LC within 5 banking days after signed and sealed contract..

4. The Seller bank will issue PB within 5 banking days after received LC.

5. Operative LC.

7. The shipment will be loaded within 35 days after operative LC.

--End--

Contract Ref: UR_XX_XXXX/ XX X,000MT * USDXXX