We accept introductions to principals from brokers, agents and intermediaries.

FOR DETAILS ABOUT EXPORT ADMINISTRATION REGULATIONS

We are always informed of the name of the principal/buyer/client, so we can perform our obligations under EAR (Export Administration Regulations)

Export Administration Regulations and Lists

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Thank you for your inquiry indicating you believe that
as an intermediary you have knowledge of a potential
Buyer of Urea46 fertilizer from a factory in the 
Russian Federation.

Palms & Company was founded in 1934 and has been an advisor 
to the Presidents of four countries and seven agencies of the 
United States Government

Our credentials can be found at:
http://www.PeterPalms.com/credentials

References, Testimonials Awards from Microsoft, IBM, AT&T,
testimonials, company history and track-record can be found at
http://www.PeterPalms.com/fertilizer.html


Complex issues arise when intermediaries are involved in
"Fertilizer Purchase Transactions" with Russian factories in which
Palms & Company acts as "The Purchasing Agent for a Buyer, 

For example 

* Is the broker expecting to make payment with his own funds or
anticipating the availability of a back-to-back letter of credit
to make payment?

* Is the buyer aware of such broker expectations? Do they both
understand that payment by LC would raise the price substantially
and that Palms only accepts Bank Wire Transfer payments from the
Buyer to Palms & Company at the time the factory accepts the order,
and that Palms proposes to guarantee the payment, with Palms's own
funds, denominated in rubles, to the factory, after the buyer 
receives delivery?

* is the presence of a "Purchasing Agent" precluded because of
expectations of either the buyer or broker for dealing directly 
with the primary smelter?

* Does the broker expect Palms to obtain and provide a quote
from a smelter for transmission to an unidentified buyer
who may already be a customer, and with respect to whom
Palms already owes non-circumvention to another broker?

* Under law, Palms has a requirement under "EAR" 
(see http://www.PeterPalms.com/trade/broker.html) to
know the final destination of the product and has assurance
regarding trans-shipment. This requires knowledge of the
intentions of the Buyer.

* Is the buyer, unbeknownst to broker or Palms, already a client
of Palms, or of another broker who expects fee protection from Palms?

* Is the history of the buyer one of perpetual annual bid seeking
for the purpose of remaining with their existing supplier, as usual,
for a renegotiated price?

* Is there a chain of more than one broker leading to the principal?

* Is a Tender involved on which thousands of brokers are all
bidding annually to the same buyer? 

* From whom is the broker expecting compensation?

* Is the broker expecting detailed costly negotiations 
for drafting of elaborate NC agreements?

For full details read 

http://www.PeterPalms.com/trade/brokers.html

http://www.PeterPalms.com/fertilizer.html

We have therefore developed the following policies to eliminate
unacceptable delays, costs, complexities and known unproductive
situations based upon our 69 years experience. 
_______________________________________________________________


PALMS & COMPANY SERVICES

TYPE SERVICE: 

We provide "Purchasing Agent Services" . We provide such services 
primarily in Russia

TO WHOM:
We provide these services to the following:

A) Buyer Users such as "farms" and "cooperatives"

B) Buyer Stocking Distributors

OUR COMPENSATION:

Consists of a combination of
A) A retainer of a negotiable number of dollars per ton
for the number of tons to be purchased annually.
B) Negotiable Performance incentive compensation of
a percentage of the "savings" effected


ARRANGEMENTS WITH BROKER

(A) We accept introductions to "users" "farms " and "cooperative" 
and "stocking distributors
(B) We will honor existing agreements introducing broker has with such buyers.
(C) If broker has no agreement with buyer, Palms agrees that if it is introduced to
buyer by broker, Palms will not consummate an agreement with buyer
unless and until an agreement is in place, acceptable to broker , providing
for compensating the broker.


Definitions

A "Purchasing Agent" provides the following services

* identifies primary producers available to supply Buyer
* assists with negotiation of purchasing order agreement and its
execution
* assists with arranging inland transportation within the Russian
Federation
* assists with securing collaboration and security with Russian
railroad officials
* assists with arranging for in-transit security with guard service
* assist with arranging for availability of a berth in the harbor
for loading the vessel.
* assists with availability of cranes with loading capacity to
preclude extra per diem demeurage.
* assists with arranging Union official collaboration in Bayshore
with laborers performing the loading
* assist with selection of a reliable vessel under a flag other
then Russian, to eliminate piracy risks or mysterious disappearance
* assist with selection of a reliable freight forwarder
listed on New York Stock Exchange.
* Assist with securing cargo insurance with a recognized
western insurance company
* assists with arranging for the cooperation of The Russian Ministry
of Foreign Economic Relations with whom Palms & Company
was licensed in 1990.
* assist with arranging documentation coordination with Russian
Customs officials at port of embarcation, and customs clearance
* assist with repeat shipments in ensuing years
* assist with utilizing foreign exchange arbitrage


A "Buyer - User' is a "farm" or "farm cooperative" who purchases fertilizer 
for in-house use and consumption and not for resale or brokering or trans-shipment.

A "Stocking Distributor" is a buyer who imports and maintains an inventory of
fertilizer for resale from inventory to Users.

"Savings" are the amount by which the "present price" is reduced

"Present Price" is an amount agreed upon by negotiation. It might involve 
reference to present and past invoices, current quotations for future 
delivery, LME, historical discounts from LME, etc.


A "Broker" is an intermediary who knows a User or Stocking Distributor.

______________________________________________________________________________

HERE, FOR YOUR CONSIDERATION, IS A BRIEF OUTLINE OF THE
PROCEDURES OF PALMS & COMPANY FOR ACTING AS A PURCHASING
AGENT IN RUSSIA FOR FERTILIZER BUYERS.

1. Buyer pays for product in cash, by wire transfer to Palms Bank
at the time Russian factory has accepted the order and promised
delivery. Payment is denominated in Dollars or Euro

2. Palms retains buyer's payment in our account denominated
in Euros to hedge currency exchange.

3. Palms issues guarantee of payment to Russian fertilizer factory
denominated in Russian Rubles through Palms's Russian bank.

4. When buyer receives the goods, Palms pays the Russian factory
in Rubles

5. We receive an expense retainer at the time we are engaged as
Buyer's Purchasing Agents of $250,000. this covers the following
expenses the Buyer has and incurs in establishing a reliable supplier.
a secure manner:

A "Purchasing Agent" renders the following services the first
year related to these Buyer's expenses.


* identifies primary producers available to supply Buyer
* assists with negotiation of purchasing order agreement and its
execution
* assists with arranging inland transportation within the Russian
Federation
* assists with securing collaboration and security with Russian
railroad officials
* assists with arranging for in-transit security with guard service
* assist with arranging for availability of a berth in the harbor
for loading the vessel.
* assists with availability of cranes with loading capacity to
preclude extra per diem demeurage.
* assists with arranging Union official collaboration in Bayshore
with laborers performing the loading
* assist with selection of a reliable vessel under a flag other
then Russian, to eliminate piracy risks or mysterious disappearance
* assist with selection of a reliable freight forwarder
listed on New York Stock Exchange.
* Assst with securing cargo insurance with a recognized
western insurance company
* assists with arranging for the cooperation of The Russian Ministry
of Foreign Economic Relations with whom Palms & Company
was licensed in 1990.
* assist with arranging documentation coordination with Russian
Customs officials at port of embarcation, and customs clearance
* assist with repeat shipments in ensuing years
* assist with utilizing foreign exchange arbitrage
* assist with denomination of payment negotiations

These expenses are more than offset (recovered) by savings
between the purchase price Buyer has been paying in the past
and the price at which Palms & Company is able to arrange for
delivery


6. Estimated Price would be $125MT c.i.f. customer's designated port
but might be as much as $25 per MT lower.

7. Ship-loads per delivery should be in 12,500 or preferably
25,000 ton quantities. Annual aggregate deliveries may
be as high as 125,000 MT annually, or more by arrangement.

8. We expect to negotiate the amount of additional incentive
performance compensation from Buyer in the form of a percentage
of the savings effected compared to the prices presently paid
by buyer, within 90 days of the date our services start.
_______________________________________________________________________

If this sounds like something that would meet the needs of 
the Buyer we invite you to consider introducing the Buyer to us. 
We would be pleased to answer any questions the may have by email, 
or to receive Buyer's visit to our offices in Seattle (Kirkland), 
Washington State, USA for an eyeball-to-eyeball meeting. It is also 
possible for the Buyer to pay the expenses of having such a meeting
take place in a country of the Buyer's choosing.



P0LICIES

1. We will not consummate any any fertilizer purchase transaction 
with any manufacturer in Russia on behalf of any Buyer, introduced 
by an intermediary, until and unless an agreement, acceptable to the 
intermediary providing for compensation of the intermediary has
been receive by the intermediary.

2. We do not request price quotations from Manufacturers 
for unknown anonymous buyers represented by intermediaries 
whose authority has not been confirmed by the Buyer. 

3. We accept introductions to buyers from intermediaries
as a first step in discussing our services with buyer

4. After we confirm validity and financial credibility
of the buyer we are willing, at buyer's instructions
to conduct our services through any intermediary the
buyer designates as his legal agent with power of
attorney to bind Buyer

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