PROCEDURES

• The buyer issues LOI+BCL with complete banking coordinates with an authorization for a soft probe.
  
  
• The seller issues FCO, buyer signs and returns it to the seller.
  
  
• The seller issues draft contract to buyer for comments and acceptance. The buyer signs and returns the final draft of the contract including all appendices fully completed and adds full banking coordinates as required.
  
  
• The seller reviews and confirms any changes made in draft contract by them buyer. If the seller agrees to the changes made by buyer, the seller issues the final binding contract via fax or email.
  
  
• The buyer returns the final agreed upon binding contract duly signed and sealed via email or fax.
  
  
• The seller will then scan the fully signed, sealed and initialed contract and email or fax the “soft copies” to the buyer.
  
  
• The seller will issue to the buyer eight (8) original copies of the contract via courier to buyer’s address as stated in the contract.
  
  
• Immediately upon receipt of the seller’s signed copies of the contract via courier, the buyer will sign the eight (8) copies and return six (6) originals by courier to the seller.
  
  
• The buyer will then, within ten (10) days of signing the contract, cause its top U.S. Bank or top 50 ranked World Bank to issue to seller’s bank an irrevocable, transferable letter of credit consistent with the wording and terms outlined in the contract. Or at this point will issue an MT-799 Proof of Funds from their bank.
  
  
• Within ten (10) business days following receipt by seller of acceptable l/c from buyer (which may be non-operative), seller shall cause its top 50 world ranked bank to issue an l/c as performance guarantee in an amount equal to two percent (2%) of buyer’s l/c. If buyer’s L.C. is non-operative, it shall be activated by seller’s l/c. Or at this point will issue an MT-799 Proof of Product if the buyer did an MT-799 Proof of funds instead of opening the LC.
  
  
• Shipping of the product will commence within forty-five (45) days from the date of seller’s receipt of the acceptable operative payment instrument.
  
  
• Upon loading of the product at the port of loading, payment of every shipment value shall be made to the seller pursuant to the terms of the L.C.