Good Afternoon,

We refer to our contract of reference ...................... dated .................. for supply of 2 x 30,000MT coal Ex
Tubindo.

With further reference to our multiple teleconversation and our recent meeting at our office
dated............., we bring the foloowing to your attention and your acceptance for further action promtly.

1) Pursuant to our above contract, you were obligated to perform the first delivery of 35,000MT in
early July 2019 and the 2nd delivery in early August 2019.
2) Subject to your above guarantee, we had made advance payment of USD 500,000.00 and
subsequently, we had pre-booked sales of the cargo to our end-buyer.
3) Despite various promises you had failed to deliver within the agreed period or the agreed
quantity. Your delivery of 30,000MT ranged from 25 th July to 15th August 2019.
4) The above had incurred a vessel demurrage of USD 200,000.00 and a dead-freight of USD
40,000.00, totalling USD 240,000.00
5) After settlement negotitations, you had requested to adjust only USD 200,000.00 from the
advance payment, leaving a net balance of USD 300,000.00 from advance payment with you;
added with the above USD240,000.00 bring the net outstanding to USD 540,000.00
6) Please be notified that your performance delay and reduced quantity supply had subjected our
company being claimed fro our end buyer as the market dipped and related trading counterparts
had suffered losses due to shift in agreed price against the dealt price during delivery. Further to,
there are interest losses due to advance payment against delivery delays.
7) In consideration of the above circumstances, we offer the following terms as settlement unto
pending shipment and outstandings payable to us.

You shall agree to :

a. Deliver between 35,000MT to 45,000MT of GAR ....... coal from Ex TOBINDO, between
25th - 25th September 2019 and agree to the deduction of USD 270,000.00 to offset from
the advance payment made.
b. Deliver between 35,000MT to 45,000MT of GAR ....... coal from Ex TOBINDO, between
25th - 25th October 2019 and agree to the deduction of USD 270,000.00 to offset from
the advance payment made.
8) .....................

Please revert to us with your confirmation and acceptance unto ther above in order for us to plan our
laycan and payments for your deliveries. Thank you