BULLION TRANSACTION PROCEDURES:

BULLION TRANSACTION PROCEDURES:
Bullion Bank in Hong-Kong

· All parties involved sign the NCND Agreement.

· The Seller shall sign the Private Sales and Purchase Agreement for Bullion Metal – AU (SPA) along with IMFPA to confirm the acceptance of transaction terms & conditions. Upon receipt of the SPA signed by the Seller, the Buyer will sign the SPA together with a Ready, Willing and Able letter (RWA) and return them to the Seller. Seller will then make plans to fly to Hong Kong for the TTM. Seller will also send the Buyer an invitation letter for the TTM at HSBC Hong Kong.

· At the TTM in Hong Kong, both parties shall complete the addendum to the SPA giving their full banking coordinates and fix with their respective bank officers a window period for the simultaneous bank-to-bank verification purposes. Seller and Buyer are ready from, January 2010.


· At the table top meeting, at the appointed window time, there will be a simultaneous exchange of Proof of Product (the Seller’s bank shall confirm, with full legal responsibility, to Buyer’s bank the Proof of Product (SKR/POP) for the initial lift of Seven Thousand (7,000) Metric Tons, and that payment shall be Bank to Bank) and simultaneously the Buyer’s bank shall confirm, with full legal responsibility, to the Seller’s bank the Proof of Funds (POF), confirming that the funds are available for the Bullion Metal (AU) (Gold Bullion) transaction as agreed. Seller desires to do Transaction Procedures in one day if possible, as early January or as soon as possible thereafter.

· Within one (1) banking day after positive verification of the POF and POP, both Parties shall meet at the Table Top Meeting at Seller and Buyer’s bank HSBC in HONG KONG HEAD OFFICE and sign and exchange the six (6) sets of Hard copies of the SPA along with the originals of POF and POP. The original documents, including the IMFPA, shall be lodged in both parties’ banks.


· At this Table Top Meeting the Seller shall provide the original of the Safe Keeping Receipt (SKR) in the Seller’s name confirming availability of agreed lift’s quantity, and invite the Buyer to visit the Bonded Warehouse to verify the Safekeeping Receipt, together with all accompanying documents and inspection of the physical bullion


On the same banking day, the Seller and the Buyer shall meet inside the Buyer’s Bank in Hong Kong and conclude the transaction on a LEDGER-TO-LEDGER basis.

· After positive verification of the SKR, the Seller shall deposit the transferred SKR in the Buyer’s name along with all original documents related to agreed transaction of Bullion Metal (AU) (Gold Bullion) into the Buyer’s Bank account in the Buyer’s Bank in HONG KONG.

· The Seller shall pay the Consultants’ Fees simultaneously with payment to the Seller’s Mandate & Buyer’s Mandate for each transaction.