EXHIBIT 10.18
[LETTERHEAD OF CECCO TRADING, INC. and LETTERHEAD OF IRONWOODS
TIMBER HOLDINGS, LTD.
March 28, 2001
Aquatic Cellulose
X.X. Xxx 0000
0000 - 00xx Xxxxxx, Xxx. 000
Xxxxxx, XX, Xxxxxx
VIT 5N6
Phone: 000-000-0000 Fax: 000-000-0000
Dear Xxxxxxx Xxxx;
The following is an outline for the terms and conditions we discussed which
would be included as part of a cooperative supply relationship between
Cecco Trading Co. and Aquatic Cellulose.
1. This agreement pertains exclusively to the supply of Ipe (tabebuia
spp Lapacho Group) Aquatic Cellulose is under no restrictions to
sell its other species to other parties though Cecco Trading may
from time to time enter into sales agreements for other species.
2. Cecco Trading will preference Aquatic Cellulose as a supplier for
the supply of ipe subject to availability within required delivery
schedules.
3. Cecco Trading agrees to pay the same market prices for ipe products
from Aquatic Cellulose as it pays to its other vendors for
equivalent specifications.
4. Should Aquatic Cellulose achieve third party certification status
from an FSC accredited certification body Cecco Trading will pay a
$50/m3 premium above non certified market prices for equivalent
specifications.
5. Cecco Trading and Aquatic Cellulose may from time to time by mutual
agreement negotiate prices in an effort to secure specific
contracts.
6. The terms of sale will be cash against presentation of documents.
7. Prices will be on an FOB 40' ships container port of Belen basis.
All inland freight brazil and container loading charges will be for
the account of aquatic Cellulose. All Ocean freight charges will be
for the account of aquatic Cecco Trading.
8. Aquatic Cellulose will ship under Cecco Trading Ocean Freight
contracts as requested at time of shipment.
9. Aquatic Cellulose reserves the sole right to accept or refuse any
offers to purchase from Cecco Trading at their discretion.
10. Aquatic Cellulose will give Cecco Trading first right of refusal on
all ipe productions in all grades. Should Cecco refuse such offers
Aquatic Cellulose is free to sell this product to other buyers.
11. Aquatic Cellulose agrees to comply with Cecco Trading's Standard
Grade, Tally, Packaging, and Delivery Specifications.
12. Cecco Trading will supply a third party inspector and grader to
verify compliance prior to shipment.
13. Aquatic cellulose will aggressively pursue third party
certification of its logging operations.
14. Once Aquatic Cellulose is third party certified Cecco Trading will
work to develop markets for lower grade ipe products.
15. Aquatic Cellulose will inform Cecco Trading in a timely matter
regarding any production delays.
16. Cecco Trading reserves the right to cancel any orders which are
not filled within the specified delivery time as indicated on the
purchase orders at time of acceptance by aquatic cellulose.
17. Cecco Trading will assist Aquatic Cellulose in the development of
milling subcontractors.
Memorializing this agreement Cecco Trading will issue to Aquatic Cellulose
purchase orders covering the following volumes of Premium Select and FAS/FIF
grade S4S E4E Ipe products.
*5 containers (80m3) Net 1.5"x3.5"x12' PS - $850/m3 Xxxxxx Park
*5 containers (80m3) Net 1.5"x3.5"x12' FIF - $800/m3 Xxxxxx Xxxx
00 containers (160m3) Net 1.5"x3.5"x12' - 20' PS - $850/m3
10 containers (160m3) Net 1.5"x5.5"x12' - 20' PS - $850/m3
10 containers (160m3) Net .75"x3.5"x8' - 16' PS - $850/m3
10 containers (160m3) Net .75"x3.5"x12' - 20' PS - $850/m3
10 containers (160m3) Net .75"x5.5"x8' - 16' PS - $850/m3
10 containers (160m3) Net .75"x5.5"x12' - 20' PS - $850/m3
10 containers (160m3) Net 1"x5.5"x8' - 16' PS - $850/m3
10 containers (160m3) Net 1"x5.5"x12' - 20' PS - $850/m3
*2 containers (32m3) Net 1"x3.5"x8' - 16' PS - $850/m3
2 containers (32m3) Net 1"x3.5"x12' - 20' PS - $850/m3
*4 containers (64m3) Net 3.5"x3.5"x8' PS - $850/m3
2 containers (32m3) Net 1.25"x2.5"x8' PS - $850/m3
*2 containers (32m3) Net 1.5"x11.25"x12' - 20' PS - $900/m3
2 containers (32m3) Net 2.5"x7.25"x8' - 16' PS - $850/m3
*4 containers (64m3) Net 1.5"x7.25"x8' - 16' PS - $850/m3
4 containers (64m3) Net 1.5"x7.25"x12' - 20' PS - $850/m3
2 containers (32m3) Net 1.5"x1.5"x3' and 8' PS - $450/m3
6 containers (96m3) Net .75"x5.5"x8' PS - $550/m3
2 containers (32m3) Net .75"x5.5"x4' PS - $450/m3
2 containers (32m3) Net .75"x5.5"x10' PS - $550/m3
1 container (16m3) Net 1"x5.5"x8' PS - $550/m3
1 container (16m3) Net 1"x5.5"x10' PS - $550/m3
Total 126 containers 2016m3 - $1,637,600.00
We would consider this a starting set of blanket orders to be produced and
supplied over the next 12 months. We would be looking for a balanced production
and shipment or sizes.
*=Priority Items
We will send the formal purchase orders overnight.
Please sign and return as confirmation of our agreement.
Regards,
/s/ Xxxxx X. Xxxx
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Xxxxx X. Xxxx
Accepted by: /s/ Date: April 4/01
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Position: Pres. AC/C
