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 }

FROM :

Dear Sir,

RE: LETTER OF INTENT TO PURCHASE { Product Name }

We, < BUYER COMPANY NAME >, hereby state and represent that it is our intention to
purchase, 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.

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, (Buyer) 2, (Seller)

Buyer Company :

Address :

Tel :

Fax :

Email :
Buyer’s Banking Co-ordinates

Bank Name :

Account No. :

Address :

Tel. :

Fax. :

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,

< Name of Authorized Signature >

< Title: Managing Director / CEO / Director / Chairman >

On behalf < Buyer’s Company Name >

2. BANK COMFORT LETTER

(On buyer's bank letterhead)

Bank name:
Address:
Telephone:
Facsimile:
Swift: Telex:
Routing #:
Account name:
Account number:

We, the undersigned bank officers, 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 this regard the
funds can be converted into a confirmed, irrevocable, letter of credit with a top 60 Prime World
Bank payment guarantee.

This information may be verified on a bank to bank basis via key tested telex only.
In issuing this statement, the bank recognizes their liability in accordance with the terms of the
contract should it proceed.

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. FULL CORPORATE OFFER (FCO) for ______________

Dear Sir,

We wish to confirm with full corporate responsibility, that we are willing and able to transact and
sell the commodities, with the following specifications, terms and conditions. Sales and purchases
will be based on international procedures.

Commodity: Copper Ore

Description: _________– _____ content of 28% - 33%. (Note: We do have _______ tons
monthly of ___ content 50% as shown in the attached assay report. This will be offered at a
different rate).

Packaging: 1-2 ton bags in 20’ containers. Total weight per container is about 21-25 tons.

Delivery: 1,000 tons per month for 12 months, partial shipment allowed. Details to be specified in
contract.

Inspection: (assayer company name) by seller at discharge port. Inspection at destination port
to be borne by buyer.
Terms: Confirmed, irrevocable, partial shipment allowed, 100% site, transferable and operational
for length of contract.

Price: USD$_____ / ton FOB Durban. (Note: This is price is CIF if it is delivered to any China
port)

Intermediators: 1, (Buyer) 2, (Seller)

This offer is valid for 72 hours and subject to unsold.

Please provide all necessary information and documents in electronic forms via email or fax
number below.

Best regards,
Company name

4. SAMPLE OF MFPA

MASTER FEE PROTECTION AGREEMENT

INTERNATIONAL CHAMBER OF COMMERCE ( I.C.C 400 /
500 / 600 NON-CIRCUMVENTION,NON DISCLOSURE and
WORKINGGREEMENT

THE IRREVOCABLE MASTER FEE PROTECTION AGREEMENT IS

BLANK, IT WILL BE UPDATED WHEN A CONTRACT IS
PERFECTED.
Irrevocable Master Fee Protection Agreement

CONTRACT NO XXXXXXXXXXXXXXXXXXXXXX
COMMODITY
ORIGIN
CONTRACT QTY
CONTRACT PERIOD
TERM
SELLER’S NAME
REPRESENTED BY
BUYER’S NAME
REPRESENTED BY

We the undersigned herewith referred as the Buyer,

Buyer, under penalty of perjury
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.
We, the Buyer,
Buyer, irrevocably confirm that we will order and direct our bank to
endorse automatic payment orders to the beneficiaries named below; furthermore,
we, the Buyer,
Buyer, confirm that all pay orders shall automatically transfer funds as
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.
For the purpose of clarity, 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.
We, the Buyer,
Buyer, agrees to provide all beneficiaries with written evidence of
the pay orders lodged with our bank together with acknowledgements of their
acceptance.
Furthermore, 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, our bank shall be the same bank and this MFPA acts as an integral part
of it.
We the undersigned being Buyer or the Buyer's named legally authorized
representative as stated within the signed and legally binding main transaction,
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. 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 $ 0.00 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$ 0.00 per MT
Seller side intermediaries US$ 0.00 per MT

TERM & CONDITIONS

This master fee protection agreement covers the initial contract and shall include
any renewals, extensions, rollovers, 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.
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. 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. This document binds all parties, their
employees, associates, transferees and assignees or designees.
All faxed and/or e-mailed signatures shall be considered as original signatures for the
purpose of binding all parties to this agreement. 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.
Any party may enter into this document and the agreement constituted thereby by
signing any counterpart any time, 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.
Furthermore,
Furthermore, we agree that any and all commissions due shall be paid to the
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.
PARTIAL INVALIDITY:
The illegality, invalidity and non-enforceable provision of this document under the
laws of any jurisdiction shall not affect its illegality, 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.C 400/500/600 signed between partners NCND laws, for unresolved disputes
the laws of the state of California, USA will apply first with the Los Angeles County
Superior court as the court of venue.
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,
validity or termination to arbitration rules of the international arbitration centre
(I.A.C). The appointed arbitrator shall hold the proceedings in any country chosen by
the parties and the rules of the IAC shall apply.
This document is signed and accepted by parties named below as to be included in
the main contract.

Acceptance by:
by:

PARTICULAR’S BUYER
Company Name
Represented by
Title
Passport No
Nationality
Signature
Bank name
Bank Address
Account No.
Account Name
SWIFT
Bank Officer
Bank Telephone /Fax

# SELLER SIDE BENEFICIARY #

TOTAL COMMISSION FOR SELLER SIDE: USD $0.00
$0.00 PER MT

SELLER GROUP 1
Total Amount USD 0.00 (…………..) per MT delivered to
Beneficiary Name
Bank Name
Bank Address
Account Number
IBAN
Account Name
SWIFT
Bank Telephone
/Fax
Bank Officer

SELLER GROUP 2
Total Amount USD 0.00 (…………..) 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 $ 0.00 PER MT

BUYER GROUP 1
Total Amount USD 0.00 ( ………… ) 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 0.00 ( ………………. ) per MT delivered to

Beneficiary Name
Bank Name
Bank Address
Account number SWIFT
Account Name
Correspondent Bank
Corresp. Account SWIFT
Bank Telephone /Fax
 : 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.

______________________________
Bank Officer Name:
Title:
Pin Number:
Bank Name:

Seal:
Date: MONTH 00th, 2009

Buyer and Paymaster

SIGN SEAL