Firm Corporate Offer The following article details the basic elements of the standard FCO (Firm Corporate Offer also known as Full Corporate Offer) which we issue to buyers prior to signing a final contract. This is for the reference of potential buyers who may wish to gain a greater understanding of our trading procedures. FCO Details

We trade in Brazilian ICUMSA 45 refined cane sugar with a polarity of 99.8%. Our sugar is from the latest crops, those harvested in the current season. It has a maximum 0.04% ash content, and maximum 0.04% moisture content. The price of sugar is to be determined in negotiations and will depend upon quantities ordered, the current going rate of sugar on the international market, and other relevant factors. On average, we can ship a maximum of 300,000 metric tons per month, for a total of three million six hundred thousand metric tons per year. The sugar is to be packed in 50 kilogram bags, and shipped in new polypropylene or polylined ethylene packaging

Ordering Procedures

Procedures relating to payment terms and conditions and contract negotiations will be detailed in the Firm Corporate Offer, and for your convenience are also outlined below.

Once the buyer receives the Soft Offer (or simple price and terms quotation), they will need to send an ICPO (Irrevocable Corporate Purchase Order), and permission for the seller to conduct a soft probe on their accounts. Bank Comfort Letter (BCL) might also be required. Once the soft probe has been conducted, the seller will send the buyer a FCO (Firm Corporate Offer) within three days. After the buyer returns the signed FCO, seller will issue the draft contract. In some cases the FCO step might be skipped and negotiations can go directly to draft contract. The buyer is free to review the contract at their leisure, and make any desired changes. The contract, with changes, is sent back to the seller, and the seller reviews the changes, makes any additional corrections, sends it back to the buyer for their review, and so on and so forth until both parties are satisfied and the draft contract is agreed upon.

Within five days of the draft contract being received and signed, the buyer’s bank should send a SWIFT message MT799 to the seller’s bank with a notification that the buyer is RWA (Ready Willing and Able) to issue the necessary financial instruments. This step is also known as POF (Proof of Funds).

Once this is received, with buyer’s bank approval of the buyer’s financial instruments, the seller will produce six hard copies of the contract and send them to the buyer who must review and initial each page within two days, then send four copies back to the seller. The buyer’s bank must also SWIFT a non operational financial instrument to the seller’s bank at this time (Stand by Letter of Credit, covering a predefined number of monthly shipments).

Within five days after the non operational financial instrument is received by the seller’s bank, the seller will SWIFT POP (Proof of Product) which includes a license to export and an approval to export, both issued by the Brazilian government, a warehouse receipt or a refinery’s commitment to produce the sugar.

Payment for sugar is made via a documentary letter of credit which is issued or confirmed by a Top 25 major world bank, payable on sight. If shipments are to take place over the course of several months, then the letter of credit should be revolving. A standby letter of credit for the value of (at least) two shipments is also required to cover the seller in the event of the buyer breaching the contract. The buyer will also receive a stand-by letter of credit from the seller as a performance bond. The performance bond is equal to two percent of the total value of the contract, and is valid for the duration of the contract with an additional thirty day extension.

Once a contract is signed, and the buyer’s financial instruments have been activated, shipments begin within twenty eight to forty five days. Before shipments leave the port they are inspected by qualified and independent SGS inspectors, and the buyer will receive the following documentation upon shipping of the sugar, SGS Certificate of Weight Grade, Quality, and Condition, Certificate of Origin, Phytosanitary Certificate, Certificate of Radiation, Crop Certificate, Signed Commercial Invoice, Clean on Board Bill of Lading, Packing List, and a Shipping Company Statement. The buyer is also welcome to inspect the product in person at this stage.