Document g23Xk294zJK1xKLEg0eXVw82L

To: , . M. A. Taylor Location: Wayne. t From: H. C. Gaffney % Location; Chicago Plant Extension: Subject: Lead Ordering - Amax Memorandum Date: February 3, 1981 Reference: Copy to: w. Henry - NA C. Postas - NA R. Von Glahn - NA B. Witherspoon - CE In the fall of 1980, Amax offered the consignment concept for our lead purchasing. This information was sent to Bill Henry as he is the one to sign contracts. In December when contacting our lead suppliers for price on January shipment, Amax once again offered consignment. I agreed and submitted a purchase order for four carloads (450k#). * The P.O. did not specify consignment, however, the order acknowledgement signed by me and D. Brandt of Amax spells out the terms. I do not believe we need to show inventory of lead at the end of January. We had 172k pounds of Amax lead on the floor on January 29th, our closing. HCG:ck H. C. Gaffney ,NA S39 REV, 7-77 LEAD & ZENC, INC. A Subsidiary of AM AX INC. 7733 Forsyth Boulevard, Suite 600 Clayton, Missouri 63105 Telephone (314) 862-9700 9 :ember 26, 1980 ' Mr. Howard Gaffiney American Cyanamid Co. 4500 W. 15th Street Chicago, IL 60623 f" Dear Bud: Confirming our conversation, AMAX is interested in discussing the concept of lead consignment with American Cyanamid. An example will illustrate the concept. AMAX and American Cyanamid would mutually agree on a monthly quantity, say 300 tons, of lead to be shipped into consignment. During October, AMAX would ship 300 tons into consignment on memo billing. On the first business day of November, American Cyanamid would take title to the 300 tons and AMAX would issue a final invoice on that day. Pricing would be AMAX's price in effect on date of withdrawal or another pricing' mechanism as previously agreed. Payment terms are net cash thirty (30) days from date of withdrawal. *> A copy of out other consignment terms and conditions are attached. We would appreciate your thoughts on this concept and expect that you would keep this illustration confidential. DDB:cw D /JC. > l/ Attachment /?V ,^ ' c~- >/y-*, v r -f r- - i N11902.01 CYWI 24-0005986 CONSIGNHENT TERMS AND CONDITIONS I It is mutually agreed between us that you will carry the consignment stocks at your plant free to us from any charges or expenses whatso ever, whether for storage, handling, or otherwise. II You are to advise us on the date of withdrawal of the total net weight withdrawn. This may be done by;telephone provided we receive written confirmation for the amount concerned on the second business day following date of withdrawal. Ill Until so withdrawn, the material covered hereby is and shall remain our sole property. IV Any state or local taxes while this material is in your custody or control shall be for your account. V Materials consigned hereunder are to be stored by you separate and apart from like materials furnished by suppliers other than ourselves, 'and shall be properly stored and marked as our property. VI You are required to account to us for the entire quantity of materials !consigned and shall be responsible to us for any loss or damage thereto ;from any cause or source whatsoever, whether such affects all or a part of the consignment. Where exact date of damage or loss cannot be 'determined, the date of report to us shall control value. VII i Neither party shall be liable for failure of performance aused by strikes, floods, fire, acts of God, casualty, or other causes beyond i. its control. CYWI 24-0005937 . -i- A- A. LEAD &. ZINC, INC. -A SUBSIDIARY OF AMAX INC. 7733 FORSYTH BLVD. CLAYTON, MO. 63105 .3U-862-9700 SALES AGENT ORDER ACKNOWLEDGEMENT r AMERICAN CYAHAIilD COMPANY 4500 W. 15TH STREET CHICAGO,. IL 60623 ATTN: HR. BUD GAFFNEY PLANT CUSTOMER 01716 PRODUCT PPD/COl. PPD EX ASARCO nr AMERICAN CYANAMID COMPANY 4500 W. 15TH STREET 1 CHICAGO, IL 60623 iMKiSlliTM .J L_CUSTOMER PURCHASE ORDER NUMBER 7496 ORDER DATE 12/16/80 n OUR ORDER NO. 1PB-001 CORRODING GRADE LEAD IN 100 POUND PIGS QUANTITY 225 NET TONS. SHIPMENT SCHEDULE SHIP ONE RAILCAR TO ARRIVE ON OR ABOUT EACH DATE: JANUARY 12, 14, 16, 1980 ROUTING BRC DELIVERY PRICE r "METALS WKF.K" U.S. PRODUCER AVERAGE LEAD PRICE FOR JANUARY 30, 1981 NOT TO EXCEED 39.00 CENTS PER POUND AS PUBLISHED IN "METALS WEEK" MAGAZINE DELIVERY CYWI 24-0005988