A brief study on RTGS transactions Procedure and Various letter formats used for RTGS are given below...such as LOI – Letter of Intent, BCL - Bank comfort letter, FCO - Full Corporate Offer and Sample of MFPA. Procedures for RTGS transactions 1. Buyer/s provide Original Letterhead copies of RWA/Letter Of Intent (LOI) and an original Bank Comfort Letter/Bank Capability Letter (BCL) to be issued by Buyer’s bank and handed over to seller. Optional : Detail Corporate Resolution on buying bullion, if buyer is a company Bullion Certificate or previous trade records, if any Corporate License and main business activity extracted from M&A A4 size color copy of international passport of LOI signatory Buyer’s notarized papers on authorized LOI signatory (the above are prefer to be combined and scanned to a CD/Disk). 2. Upon accept of the original set of RWA/LOI and BCL stated in (1) above, Seller will issue his FCO and draft S&P Agreement to the Buyer’s address to proceed the transaction. 3. Both parties sign the S&P Agreement in Singapore. 4. Master Fee Protection Agreement (MFPA) is prepared by Buyer. 5. Then Buyer will issue his Sight LC to Seller for the First Tranche or revolving LC for this transaction. 6. Product issued will be forwarded to buyer’s Bank in accordance with the signed S&P Agreement. 7. Transaction is completed upon payment is made against the LC as stipulated in the S&P Agreement, and all consultants’ fee and commission are paid simultaneously in accordance with the payment orders appended on the product S&P Agreement. 1. BUYER COMPANY’S LETTER HEAD Official Company Address LOI – LETTER OF INTENT Our ref.: XXXXXXXX Date Issued: DD/MM/YYYY TO : {SELLER / SELLER REPRESENTATIVE } hereby state and represent that it is our intention to purchase. 1) Commodity: 2) Specification: 3) Origin: 4) Quantity: 5) Contract Period: 6) Price Term: 7) Discount: 8) Delivery: 9) Payment: 10) Inspection: 11) Performance Bond: 12) Validity of this LOI: 13) Intermediators: 1.FROM : Dear Sir. RE: LETTER OF INTENT TO PURCHASE { Product Name } We. and we hereby confirm that we are ready. willing and able to purchase the following commodity as per the specification and in the quantity and for the price as specified in the terms and conditions as stated below. < BUYER COMPANY NAME >. Buyer Company : Address Tel Fax Email : : : : (Buyer) 2. (Seller) . Buyer’s Banking Co-ordinates Bank Name Account No. < Name of Authorized Signature > < Title: Managing Director / CEO / Director / Chairman > On behalf < Buyer’s Company Name > 2. Bank Officer Swift Code/ABN/Routing Code : : : : : : : We understand that any offer to purchase is subject to successful/Buyer verification of the availability of funds. We hope to get a favorable and prompt attention to this Letter of Intent and look forward to receiving your confirmation on the FCO shortly Thank you in anticipation Yours sincerely. Fax. BANK COMFORT LETTER (On buyer's bank letterhead) Bank name: Address: Telephone: Facsimile: Swift: Telex: Routing #: . Address Tel. Packaging: 1-2 ton bags in 20’ containers. the bank recognizes their liability in accordance with the terms of the contract should it proceed. Total weight per container is about 21-25 tons.33%. This information may be verified on a bank to bank basis via key tested telex only. terms and conditions. hereby confirm with full responsibility that the amount of: US$ (United States dollars) ______________________________ is reserved in this bank at the request of (buyer's name) ______________________________ for the finalization of contract for the purchase of (product) ______________________________ These funds are available for the purchase of the above identified product. In issuing this statement. with the following specifications. . letter of credit with a top 60 Prime World Bank payment guarantee. We wish to confirm with full corporate responsibility. irrevocable. Inspection at destination port to be borne by buyer. partial shipment allowed. Commodity: Copper Ore Description: _________– _____ content of 28% . that we are willing and able to transact and sell the commodities. Inspection: (assayer company name) by seller at discharge port. In this regard the funds can be converted into a confirmed. Delivery: 1. This will be offered at a different rate). FULL CORPORATE OFFER (FCO) for ______________ Dear Sir. the undersigned bank officers. (Note: We do have _______ tons monthly of ___ content 50% as shown in the attached assay report. Details to be specified in contract. Sales and purchases will be based on international procedures.000 tons per month for 12 months. Bank seal: Name of bank officer #1: ______________________________ Title: ______________________________ Signature: ______________________________ Printed name: ______________________________ Bank seal: Name of bank officer #2: ______________________________ Title: ______________________________ Signature: ______________________________ Printed name: ______________________________ Bank seal: 3.Account name: Account number: We. We. . Irrevocable Master Fee Protection Agreement CONTRACT NO COMMODITY ORIGIN CONTRACT QTY CONTRACT PERIOD TERM SELLER’S NAME REPRESENTED BY BUYER’S NAME REPRESENTED BY XXXXXXXXXXXXXXXXXXXXXX We the undersigned herewith referred as the Buyer. SAMPLE OF MFPA MASTER FEE PROTECTION AGREEMENT INTERNATIONAL CHAMBER OF COMMERCE ( I. under penalty of perjury Buyer. 100% site. IT WILL BE UPDATED WHEN A CONTRACT IS PERFECTED. Please provide all necessary information and documents in electronic forms via email or fax number below. (Note: This is price is CIF if it is delivered to any China port) Intermediators: 1. Best regards. do hereby irrevocably confirm and irrevocably accept to pay all intermediaries and fee holders at the same time and in a manner as the seller is being paid for each and every transaction of this contract up to the completion of the contract plus rollovers and extensions and in accordance with the bank details to be specified in the hard copies of this contract. transferable and operational for length of contract. Company name 4.C. irrevocably confirm that we will order and direct our bank to Buyer. (Buyer) 2. Price: USD$_____ / ton FOB Durban. irrevocable.NON DISCLOSURE and WORKINGGREEMENT THE IRREVOCABLE MASTER FEE PROTECTION AGREEMENT IS BLANK. the Buyer. (Seller) This offer is valid for 72 hours and subject to unsold.Terms: Confirmed. partial shipment allowed.C 400 / 500 / 600 NON-CIRCUMVENTION. invalidity and non-enforceable provision of this document under the . rollovers.00 per MT TERM & CONDITIONS This master fee protection agreement covers the initial contract and shall include any renewals. extensions. agrees to provide all beneficiaries with written evidence of Buyer. This agreement also acts as a record confirming the commission amounts for each named beneficiary as set out below:TOTAL COMMISSION SHALL BE PAID BY THE BUYER AS FOLLOWS:The amount of USD $ 0. we. their employees. directed into each beneficiaries designated bank account within 1 (one) day after the date of closing and completion of each and every shipment of the product during the contract term plus any/or extensions and rollover of the specified contract. We the undersigned being Buyer or the Buyer's named legally authorized representative as stated within the signed and legally binding main transaction. Furthermore. This document binds all parties. This master fee protection agreement and any subsequently issued pay orders shall be assignable. transferable and divisible and shall not be amended without the express written and notarized consent of the receiving beneficiary. Any party may enter into this document and the agreement constituted thereby by signing any counterpart any time. we confirm that the closing and completion of each and every shipment shall be deemed to take place when the letter of credit issued by the buyer has been drawn down at the counters of the issuing bank. the Buyer. the Buyer. transferees and assignees or designees. For the purpose of clarity.endorse automatic payment orders to the beneficiaries named below. furthermore. PARTIAL INVALIDITY: The illegality. the pay orders lodged with our bank together with acknowledgements of their acceptance. associates.00 per MT Seller side intermediaries US$ 0. We.00 per MT of 00 000 (…………………………………) MT x 12 delivered should be settled as herein stated to be transferred into the account as follows: Buyer side intermediaries US$ 0. our bank shall be instructed to provide duly signed and stamped acknowledgement of this instruction as set out in the annex forming part of this agreement it is understood that for the purposes of this Master Fee Protection Agreement. date or period mentioned in any provision of this document shall only be amended by agreement in writing and signed off by all parties concerned. All faxed and/or e-mailed signatures shall be considered as original signatures for the purpose of binding all parties to this agreement. confirm that all pay orders shall automatically transfer funds as Buyer. we agree that any and all commissions due shall be paid to the Furthermore. All parties agree neither to circumvent nor to attempt circumvent either for the transaction of this current contract or in the future for a period of five (5) years from the date of the execution of this fee protection agreement. beneficiary as a result of any extension or rolls of the contract and that we shall effect all necessary documentation with our bank without any undue delays to ensure such commissions and paid within the terms of the agreement. Furthermore. This document may be signed and in any number of counterparts all of which shall be taken together and shall constitute as being one and the same instrument. our bank shall be the same bank and this MFPA acts as an integral part of it. contract unconditionally agree and undertake to approve and originate all payments in USD currency to all beneficiaries named below as their rightful and payable commissions. additions or any new or transfer contract any how originated from this transaction because of the above intermediaries or changing codes of the initial contract entered into between the buyer and seller. validity or termination to arbitration rules of the international arbitration centre (I. Acceptance by: by: PARTICULAR’S Company Name Represented by Title Passport No Nationality Signature Bank name Bank Address Account No.00 (…………. validity or enforceability under the law of any other jurisdiction or provision. GOVERNING LAW AND JURISDICTION: JURISDICTION: This document shall be governed and construed in accordance with current English or I.C 400/500/600 signed between partners NCND laws.) per MT delivered to Beneficiary Name Bank Name Bank Address Account Number IBAN . USA will apply first with the Los Angeles County Superior court as the court of venue.00 PER MT $0.. ARBITRATION: All parties agree to refer any disputes between the parties arising out of or in connection with this agreement including any questions regarding its existence. for unresolved disputes the laws of the state of California.C.00 SELLER GROUP 1 Total Amount USD 0. Account Name SWIFT Bank Officer Bank Telephone /Fax BUYER # SELLER SIDE BENEFICIARY # TOTAL COMMISSION FOR SELLER SIDE: USD $0.C). This document is signed and accepted by parties named below as to be included in the main contract. The appointed arbitrator shall hold the proceedings in any country chosen by the parties and the rules of the IAC shall apply.laws of any jurisdiction shall not affect its illegality.A. 00 (………….00 ( ……………….00 ( ………… ) per MT delivered to Beneficiary Name Bank Name SWIFT Bank Address Account number Account name Correspondent Bank SWIFT Intermediary Bank SWIFT Bank Telephone /Fax BUYER GROUP 2 Total Amount USD 0. Account SWIFT Bank Telephone /Fax ..) per MT delivered to Beneficiary Name Bank Name Bank Address Account Number Routing Number Account Name SWIFT Bank Telephone /Fax Bank Officer # BUYER SIDE BENEFICIARY # TOTAL COMMISSION FOR BUYER SIDE: USD $ 0. ) per MT delivered to Beneficiary Name Bank Name Bank Address Account number SWIFT Account Name Correspondent Bank Corresp.Account Name SWIFT Bank Telephone /Fax Bank Officer SELLER GROUP 2 Total Amount USD 0.00 PER MT BUYER GROUP 1 Total Amount USD 0. ______________________________ Bank Officer Name: Title: Pin Number: Bank Name: Seal: Date: MONTH 00th.: ALL BANK CHARGES SHOULD BE BORNE BY ACCOUNT BENEFICIARY Bank Endorsement This irrevocable payment order has been lodged with us and will be executed as per instructions above. 2009 Buyer and Paymaster SIGN SEAL .