Procedures

Procedures

1.Buyer issues Letter of Intent on company letterhead
2.Seller issues Full Corporate Offer
3.Buyer confirms sale. Buyer signs full corporate offer, and sends it to    seller, accompanied with buyer's Bank Comfort Letter (BCL) NOTE :If    no BCL, there are no further proceedings
4.Upon seller's receipt of above, seller will send buyer, via fax, a draft    copy of contract for buyer's approval
5.Buyer's bank will issue to seller's bank, via key tested telex (KTT) a non -  operative copy of the Letter of Credit (L/C) NOTE : No draft copy on    buyer's company letterhead, or Letter of Credit (L/C) application, will be    accepted as substitutes
6.Seller will reply on its letterhead with a KTT window time, bank-to-bank,    for the proof of funds against proof of product, which will be done    simultaneously
7.Upon successfull KTT, the hard copy of the contract will be exchanged    via international courier service (DHL or FedEx or UPS)
8.Supplier's bank will post a 2% performance bond, which activates the    buyer's L/C 9.Buyer's bank issued Letter of Credit (L/C) 10.Shipments    start as contractually agreed