Payment Procedures

8/3/2019 Payment Procedures

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METHODS OF PAYMENT

This Seller offers Three (3) different forms of payment, described below. Find the

forma of payment that meets your requirements by clicking on the ACCEPT FORM

link and we will start the process.

I. Payment by RDLC

(Transferable Auto - Revolving Documentary Letter of Credit)

1. Seller Mandate sends FCO to the Buyer

2. Buyer accepts FCO and returns with ICPO soft-probe or BCL to the Seller Mandate.

3. Seller Mandate provides draft contract by E-Mail to the Buyer.

4. Buyer verifies draft contract and adds his amendments, if necessary.

5. Buyers signs and seals the contract and return by protected E-Mail to the Seller.

6. Seller countersigns and seals the contract and dispatches to the Buyer in form of Fax

or E-Mail. Buyer issues 6 hard Copies of the Contract and sends them via FEDEX toSeller.

7. Seller will forward, within 48 hours, Soft POP receipts to Escrow account. Full POPdocumentation will be released to the buyer when the buyer puts up the non- operative

L/C POF into the Escrow account.

8. Within 2 (two) banking days after confirmation, Buyer will send POF MT799 from

Buyers bank to Escrow account or issues non- operative L/C on a bank-to-bank base.

9. The Seller send 2% Performance Bond (PB) from the Sellers bank to Buyer bank

after receipt acceptable wording of MT 799 from Buyers Bank.

10. Buyers bank makes pre-advise RDL/C to become an operative Instrument as per theverbiage agreed between Seller and Buyer according to corresponding Annex to contract.

11. Within 7 (seven) days of receipt of the above referenced Letters of Credit from theBuyers Bank, the Sellers Bank issues an operative performance bond equal to 2% of

monthly shipment value, at the contract price. Seller shall provide satisfactory P.O.P."

(Proof of Product), which shall consists of the Goods Producer confirming that theallocation of said product, and quantity is existing in the name of the Seller. Transneft

ACT number documents with all relevant export permits / licenses by the department of

authority, as bellow:


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II. Payment by SBLC/SLC

(Stand By Letter of Credit)

A. Buyer sends an Irrevocable Corporate Purchase Order (ICPO) with full bankinginformation to Sellers Mandate.

B. Seller in reply sends per E-mail FCO (Full Corporate Offer) to Buyer.

C. Buyer accepts this Sellers FCO with signature, seal and sends it back to Sellersmandate.

D. Seller sends per E-mail a draft contract to Buyer.

Next actions as follows:

1. Buyer/ Seller signs this draft contract per E-mail and Buyer sends 6 pre-signed

contracts to the Seller and each party.

2. Buyer/Seller should both lodge the executed contract in their respective banks.

3. After signing of the electronic contract, Buyer has to send swift message (MT760-

BCL) to Sellers bank, with readiness of Buyer to provide MT760 (POF) to Seller in an

amount equal to last-months shipment of Gas oil D2 and readiness to provide an

irrevocable, auto-revolving, SBLC Letter of Credit payable 100% at sight againstshipping documents to pay for each monthly shipment for the term of the agreement.

4. Seller arranges a table top meeting (TTM) to show the original POP documents to thebuyer. After The Buyer issues a non operative SBLC to the sellers bank, value of

0.000.000 MT of xxx oil at the contract price.

5. Seller, within 48 hours of receiving non-operative SBLC, delivers the non-operative

2% PB and full POP documents (Proof of Product) to buyers bank of the monthly

shipment value of 0.000.000 MT of xxx oil at the contract price, to buyers bank.

6. Buyers bank issues an IRREVOCABLE, OPERATIVE AND TRANSFERABLE

CONFIRMED SBLC (ICC458) for monthly payments, buyer issues revolving TT by

SWIFT Wire MT103/23 after sighting of documents, except for the last month ofshipment

7. Contract comes into force.

8. The Seller shall issue the first cargo delivery confirmation and date.

9. Shipment will start according to conditions of the contract and according to agreed

schedule. Payment for each monthly shipment shall be by irrevocable, auto-revolving,

confirmed SBLC Letter of Credit payable 100% at sight against shipping documents.


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10. Each party hereto will bear its respective banking costs / charges.

12. The Verbiage of Bank Instrument (SBLC) and Performance Bond will be mutually

agreed by both parties panel Bank, Any reasonable variations being acceptable.

To accept this offer, please sign and seal thisACCEPT FORMso that procedures can be

beginning.
http://www.globalpetrometal.com/acceptance_by_buyer_II.dochttp://www.globalpetrometal.com/acceptance_by_buyer_II.dochttp://www.globalpetrometal.com/acceptance_by_buyer_II.dochttp://www.globalpetrometal.com/acceptance_by_buyer_II.doc


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III. Payment by BG

(Irrevocable, operative and transferable assigned and

confirmed Bank Guarantee (ICC458))

A. Buyer sends an Irrevocable Corporate Purchase Order (ICPO) with full banking

information to Sellers Mandate.

B. Seller in reply sends per E-mail FCO (Full Corporate Offer) to Buyer.

C. Buyer accepts this Sellers FCO with signature, seal and sends it back to Sellersmandate.

D. Seller sends per E-mail a draft contract to Buyer.

Next actions as follows:

1. Buyer/ Seller signs this draft contract per E-mail and Buyer sends 6 pre-signedcontracts to the Seller and each party.

2. Buyer/Seller should both lodge the executed contract in their respective banks.

3. After signing of the electronic contract, Buyer has to send swift message (MT760-

BCL) to Sellers bank, with readiness of Buyer to provide MT760 (POF) to Seller in an

amount equal to last-months shipment of Gas oil D2 and readiness to provide anirrevocable, auto-revolving, SBLC Letter of Credit payable 100% at sight against

shipping documents to pay for each monthly shipment for the term of the agreement.

4. Seller arranges a table top meeting (TTM) to show the original POP documents to the

buyer. After The Buyer issues a non operative SBLC to the sellers bank, value of

0.000.000 MT of xxx oil at the contract price.

5. Buyers bank issues the IRREVOCABLE, OPERATIVE AND TRANSFERABLE

ASSIGNED AND CONFIRMED BANK GUARANTEE BG (ICC458) ISSUED BY A

PRIME BANK, good for one year and one day, payable for last-months shipment, whichactivates the Performance Bond and causes Seller to provide complete POP documents to

buyers bank.

6. Contract comes into force.

7. The Seller shall issue the first cargo delivery confirmation and date.

8. Shipment will start according to conditions of the contract and according to agreed

schedule. Payment for each (monthly) shipment shall be T.T. payment by SWIFT Wire

MT103/23 (or RDLC) payable 100% at sight against shipping documents.


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9. Each party hereto will bear its respective banking costs / charges.

10. The Verbiage of Bank Instrument (BG), and Performance Bond will be mutually

agreed by both parties panel Bank, any reasonable variations being acceptable.

To accept this offer, please sign and seal thisACCEPT FORMso that procedures can be

beginning.
http://www.globalpetrometal.com/acceptance_by_buyer_III.dochttp://www.globalpetrometal.com/acceptance_by_buyer_III.dochttp://www.globalpetrometal.com/acceptance_by_buyer_III.dochttp://www.globalpetrometal.com/acceptance_by_buyer_III.doc

Payment Procedures

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