MBS VENTURES

LETTER OF INTEREST
SUBJECT TO CONTRACT

December 4, 2009
Ref: MBSV/AMBER/LOI/001-09

To: P.T. MULTI CHARYKAD

Attn: Mr. Anthony Selliah

We MBS Ventures hereby offer together with their associated Companies, with full legal and
corporate responsibilities confirm that we are Interested to purchase the following commodity for our clients in
accordance with The terms and conditions as stated below and mutually agreed commercial covenants and
acceptance of the final contract.

SPECIFICATIONS STEAM COAL (Non Coking) GCV 6300kcal/kg reject 6100kcal/kg

1. Total Moisture (ARB) 16% max (NO BLENDING)

2. Inherent Moisture (ADB) 10-12%
3. Ash (ADB) 10% max
4. Volatile Matter (ADB) 40-45 Max
5. Fixed Carbon (ADB) 40% min
6. Sulfur Total (ADB) 0 .8max% - 1% reject
8. High Grove Index (HGI) 41 Min
9. Size 0-50mm 90%min
10. NCV ARB 5500kcal/kg

COMMODITY: Steam Coal

ORIGIN: Kalimantan Indonesia
TOTAL QUANTITY: 360’000 MT
MONTHLY SHIPMENTS: 120, 00 MT
CONTRACT LENGTH: 3 Months with possible extensions for another 33 months
LOADING PORT: South Kalimantan Open Sea
DELIVERY PORT: QuanZhou port, Fujian Province, P.R. China
Vessel Size: Panamax 70,000 dwt

PRICE CIF :__________( USD. ______) per metric ton inclusive of all taxes and Port duties fixed for the
Duration of three months in the year from the Date of the first bill of lading. Any extensions of the
Contract will also include the renegotiation of the price based on local and world prices At that
Time calculated in US dollars to three decimal places.

Sellers Acceptance Signature/Seal ________________________________

No 12 A, KK Building, behind Ayyappan Temple, Ramanathapuram, Coimbatore-641045

Mobile: +91 – 9790516014, +91 – 9994388666, Email: [email protected]
 MBS VENTURES

Price FOB: _________ (mother vessel open sea)

SHIPPING TERMS: From one safe Indonesian seaport with capacity to accept vessels to carry minimum
40,00 Metric Tonnes of Steam Coal to QuanZhou. Total of 120,000MT per month.
Shipping cost is paid by the Buyer

Packing : Bulk

SHIPMENT SCHEDULE : First shipment of 60,000mt within 20(twenty) days upon confirming of
the bank instrument. The second will be delivered five days after the
first shipment , Total delivery within 30 (thirty) days.

INSPECTION : Quality, Quantity, Weight by SGS at Seller’s cost at Loading port ,

South Kalimantan–Open sea, Indonesia. Quality determination to be
performed prior to loading at delivery date. Quantity determination
to be performed at the time of loading .

PAYMENT TERM : The payment will be by US DOLLARS sight draft against a Confirmed
Irrevocable, Documentary Letter of Credit (DLC) valid for 6 (six) months
and issued by a top 10 rated world bank or other bank acceptable to
seller. If a bank other than top 10 rated bank is requested, seller may
request confirmation of DLC at buyer expense. DLC shall be in favor of
the seller and in the amount corresponding to the total value of monthly
shipments. Payment to be made at sight without any deduction,
withholding, offset or counter claim. Partial payments shall be allowed
under the letter of credit in accordance with the shipping schedule.
Payment in full shall be made on completion of loading by sight draft against CIDLC by
presentation of the following documents:

PRODUCT DOCUMENTATION FOR LETTER OF CREDIT:

1) Commercial Invoice;
2) Full set of clean “ON BOARD” Bill(s) of Lading identifying vessels’ tanks into which the goods
have been loaded; Bill of Lading (B/L) to be signed by tanker’s master or agent at completion of loading.
3) Certificate of shipped weights ascertained at port of loading and issued by an independent surveyor;
d) Survey report issued by an independent surveyor Sucofindo at loading port and CIQ at unloading port.
e) Certificate of quality issued by an independent surveyor prior to loading
f) Certificate of origin; Buyer is to accept Photo-static copies

Sellers Acceptance Signature/Seal ________________________________

No 12 A, KK Building, behind Ayyappan Temple, Ramanathapuram, Coimbatore-641045

Mobile: +91 – 9790516014, +91 – 9994388666, Email: [email protected]
 MBS VENTURES

TRANSACTION PROCEDURE:
1) Seller sends FCO, and Draft Contract with seller’s details and full co-ordinates, Buyer initials
draft contract after satisfied with seller’s terms and conditions returns initialed with banking
details to seller.
2) Authorized signatories sign the final contract, and exchanging hard copies, via express courier
(if requested).
3) Upon receipt and acceptance of contracts, seller’s bank opens the fully non Operative,
Documentary Letter of Credit which activates the sellers performance bond (P.B.) of 2 %( two
percent) in return for Letter of Credit from buyers bank.
4) Delivery commences as scheduled agrees by both parties in the contract.
5) The seller shall issue the first cargo within 7(seven) days after received hard DLC from buyer
bank.
6) Each party hereto will bear its respective banking costs / charges. Buyer shall be responsible
for any Confirmation charges. Seller to be responsible for sight draft negotiation charges.
Should any amendments to the documentary letter of credit be requested once the same has
been issued, then the party requesting the change will be responsible for the payment of the
related costs, unless changes are needed to construct the instruments in compliance with this
contract, then the costs shall be borne by the faulting party.

SELLER’S BANK DETAIL

NAME OF BANK :
ADDRESS :
PHONE :
FAX :
ACCOUNT NUMBER :
SWIFT :
ACCOUNT NAME :
OFFICER :

THIS LETTER OF INTEREST IS STRICTLY VALID FOR THE NEXT 72 hours ONLY (unless reconfirmed
by
writing to buyer.)
Your co-operation is highly appreciated.
Kind regards,
For And on Behalf of
MBS VENTURES
Mahalingam.R
Wednesday, December 04, 2009

Sellers Acceptance Signature/Seal _____________________________

No 12 A, KK Building, behind Ayyappan Temple, Ramanathapuram, Coimbatore-641045

Mobile: +91 – 9790516014, +91 – 9994388666, Email: [email protected]