Procedure with Bank guarantees (SBLC)

TRANSACTION PROCEDURES: (In time sequence)

Seller and Buyer solemnly agree as follows:

A) After mutual agreement about the terms of this contract, Buyer and Seller sign and seal this Sales and Purchase agreement with full banking coordinates. For this propose, Buyer send the contract signed and sealed by mail or by Fax to the Seller within a maximum of three (3) working days and Seller return the Contract signed and sealed, also by mail or by Fax to the Buyer.

B) Seller and Buyer lodge this Sales and Purchase contract in their respective banks in a maximum of 2 (two) working days after signed by both. Seller is only authorized to verify the Buyer Financial Bank details after a written permission is granted by the Buyer.  Unauthorized call to the Buyer Financial Bank will automatically nullify the Sales & Purchase Agreement.

C) Upon the signing of the contract between the Seller and the Buyer, the Seller should have to make the deposit of the first tranche in a local Bank or in an official Safe Keeping House for verification, before shipment. The Bank or the Safe Keeping House upon receiving the consignment would have to issue a 100% Safe Keeping Receipt of the Gold Bars. This is with reference to the normal procedures regarding the sales of Precious Metals of the origin country of the Gold. The fee´s of the SKR issued should be paid by the Seller. The Safe Keep Receipt, Confirmation letter of deposit and pre-essay, shall then be sending to the Buyer.

D)  Buyer’s Financial Bank shall provide by SWIFT a non operative SBLC – Stand By Letter of Credit from a TOP 25 Bank for the estimated value of the first tranche, standing as payment collateral for the entire first tranche, after receive 4% of the value of the instrument from the Sellers Financial Bank in a way to be agreed between the Sellers Financial Bank Officer and the Buyer´s Financial Bank Officer.

E) Upon Seller’s Financial Bank receipt, confirmation and acceptance of the SBLC, in a maximum of 3 (three) working days, Seller’s Financial Bank sends confirmation to the Seller that the Banking instrument is in place and Seller blocks the AU Gold Bars in the name of the Buyer. Seller should then send immediately to Buyer a notification, by fax or email, that the AU metal is blocked in the name of the Buyer and ready to start the procedures for shipment.

F) First tranche and ongoing tranches of the Gold Bullion (AU) Metal will be delivered to The Buyer’s destination free zone Airport, within a maximum of 10 (ten) working days, after confirmation of the collateral SBLC.

Prior to Aircraft Departure from the Origin country, Seller shall notify Buyer about the Airline, Flight Number, Date of expected Departure and Arrival Date and Time, and copies of all export documents should be sent immediately to the Buyer by e-mail or Fax, in return, Buyer should confirm by mail or by fax, the reception of the documents.

Buyer or whom he indicates, on behalf of Seller, shall clear the shipment through Customs, and complete the delivery to the refinery. Buyer is responsible for all charges from Free zone of the Destiny Airport to his Nominated Refinery. The GOLD AU Bars could goes into the account of the Buyer at Refinery on arrival.

G) Immediately after the Seller’s Gold Bars arrived, the refinery will notified by mail or by Fax, the Seller and the Buyer. If requested by the Seller, in a maximum of Two (2) working days after the Refinery  receives the shipment of the gold, the refinery could made a initial assay of the Gold to the Seller for acceptance and should send a fax or a email of the copy of the refinery’s initial assay to the Buyer and to the Seller. Seller will pay the cost of the initial essay test.

H) Payment will be released at completion of Final Assay by Buyer’s Refinery within 72 (seventy two) working hours after the final Assay Report is accepted by the Seller and the Buyer and commissions will be paid immediately and without delay to each appointed Paymaster or Beneficiary, after each delivery, and as per Terms and Conditions of the IMFPA attached with the contract

I) The exchange of Proof of Product, Delivery of  Gold Bullion (AU) Metal documents and Payment for the Gold Bullion(AU) Metal delivered shall be executed strictly on a Bank to Bank basis under the full Banking responsibility of the Seller’s Bank, Sellers Financial Bank, Buyer’s Bank and Buyers Financial Bank, unless mutually agreed by the Buyer and Seller.

J) Buyer and Buyer’s mandate and Seller and Seller Mandate, hereby agrees that this information connected to it must not and shall not be released to any person or legal body, EXCEPT THOSE ENTITTLED TO KNOW ABOUT IT.

PLEASE NOTE: This draft contract is time-sensitive. If  Buyer do not execute and remit this Agreement to Seller on May, 4th, 2012 of receipt thereof, failing which, this Agreement is terminated without further notice unless written permission is received from the Buyer.