Sale & Purchase Contract for Iron Ore Contract No. : 301/SPIO/BKU-CHL/V/2010 Date : 20 July 2010. The Seller : The Buyer : This Contract is made by and between the Buyer and the Seller; whereby the Buyer agrees to buy and the Seller agrees to sell the under-mentioned Ore on the terms and conditions stated as below:
1. Definition： In this contract, the following terms shall, unless otherwise defined, have the following meanings: a) “Ore” : Iron Ore Lump Fe 63.00 % produced by (PT. BGN), Indonesia
b) “Ton” : means a metric ton of 1,000 kg c) “MT” : means Metric Ton d) “Dollars” and “Cents” : mean respectively dollars and cents in lawful money of The United States of America
e) “Loading Port” : Muara Satui, South Kalimantan,Indonesia f) “SGS” : means Societe Generale de Surveillance g) “CCIC” : means China Certification and Inspection (Group) Co., Ltd.
2. Quantity： a) 1st delivery in quantity: 45,000 MT (Forty Thousand metric tons) as a trial order in 30 days after received active L/C.
b) Subsequently, 2nd to 12th monthly quantity is at least 45,000 MT / month (Forty Five Thousand metric tons) – with 10 % more or less, provided that the quality of the first shipment turns out to be satisfactory by the Buyer.
3. Specification 规格： The ore shall conform to the following chemical and physical specifications (on dry basis): 矿石应符合以下化学及物理规格（干燥基）： Item 项目 Guaranteed Specification 保证值 Rejection Limit 拒收值 Fe 铁 63.00 % min. 不低于63.00 % Below 61.00 % 低于61.00 % SiO2 二氧化硅 2.00 % max. 不高于2 % Above 2.00 % 高于2 % Al2O3 三氧化二铝 3.00 % max. 不高于3.00 % Above 3.50 % 高于3.50 % S 硫 0.10 % max. 不高于0.1 % Above 0.10 % 高于0.1 % P 0.10 % max. Above 0.10 % 磷 不高于0.10 % 高于0.10 % TiO2 二氧化钛 0.08 % max. 不高于0.08 % Survey
K2O 氧化钾 0.01 % max. 不高于0.01 % Survey
Mn 锰 0.82 % max. 不高于0.82 % Survey
Free moisture loss at 105 degrees centigrade 105摄氏度下的游离水份流失 8.00 % max. 不高于8.00 % Survey
Size (on natural basis) 粒度（自然基） 0 - 10 mm 15 % max. 0 – 50 mm 85% min. Above 10 mm 大于 50 mm
4. Unit Price： 4.1 Base Price ： USD 00.00/MT (Eighty Five United States Dollar America per Metric Ton) FOB Mother Vessel, South Kalimantan - Indonesia
* The applicable rule for price negotiation every 3 shipments to be discussed and agreement by the Buyer and the Seller.
4.2 Price Adjustment ：
Based on the SGS / CCIC Quality and Weight reports at loading port and the final CIQ Quality and Weight inspection reports issued at discharging port, the following adjustment shall be made to the base price stated above :
a) For Iron content (Fe) If the Fe content is over 63.00 %, for each 1.00 % increase in the Fe content above 63.00 %, USD 0.25 per Metric Ton to be added to the base price, fractions pro rata. If the Fe content is below 63.00%, for each 1.00 % decrease in the Fe content below 63 %, USD 0.25 per Metric Ton shall be deducted from the base price, fractions pro rata.
If the Fe content is below 61.00 %, the Buyer shall have the right to reject the cargo. b) For Impurities Silica (SiO2) If the SiO2 content is over 2.00 %, for each 0.10 % increase in the SiO2 content above 0.30 %, USD 0.05 per Metric Ton to be deducted in the base price, fractions pro rata. If the SiO2 exceeds 2.00 %, the Buyer shall have the right to reject the cargo.
Alumina (Al2O3) If the Al2O3 content is over 3.00 %, for each 0.10 % increase in the Al2O3 content above 3.00 %, USD 0.05 per Metric Ton to be deducted in the base price, fractions pro rata. If the Al2O3 exceeds 3.50 %, the Buyer shall have the right to reject the cargo.
Sulphur (S) If the Sulphur content is over 0.10 %, for each 0.01 % increase in the Sulphur content above 0.04 %, USD 0.05 per Metric Ton to be deducted in the base price, fractions pro rata. If the Sulphur exceeds 0.10 %, the Buyer shall have the right to reject the cargo. Phosphorus (P) If the Phosphorus content is over 0.10 %, for each 0.01 % increase in the Phosphorus content above 0.03 %, USD 0.05 per Metric Ton to be deducted in the base price, fractions pro rata. If the Phosphorus exceeds 0.10 %, the Buyer shall have the right to reject the cargo.
Titanium (TiO2) If the Titanium content is over 0.10 %, for each 0.01 % increase in the Titanium content above 0.10 %, USD 0.05 per Metric Ton to be deducted in the base price, fractions pro rata.
c) For Size If the size below 10 mm exceeds 15 % of the total quantity, USD 0.50 per Metric Ton shall be deducted in the invoice value for the excess tonnage exceeding 15 %.