IBMALAYSIA

Procedure & Documentation

LETTER OF INTENT (LOI) / IRREVOCABLE CORPORATE PURCHASE OFFER (ICPO)

PROCEDURE OF ORDER

1. BUYER (OR BUYER'S AGENT) REQUESTS A QUOTE ON A PRODUCT

2. WITH THE REQUEST IS A LETTER OF INTENT (LOI) TO BUY STATING EXACTLY WHAT YOU WANTS WITH FULL SPECIFICATIONS FOR PRODUCT, QUANTITY, PACKING, DESTINATION, SPECIAL INSTRUCTION, TARGET PRICES, ETC.

3. IBMALAYSIA AS SELLER SENDS A PROFORMA OFFER TO SELL WHICH GIVES COMPLETE INFORMATION ABOUT THE PRODUCT SUCH AS:

SPECIFICATIONS OF PRODUCT

COUNTRY OF ORIGIN

QUANTITY

PACKING

PRICE

TERMS OF DELIVERY

TERMS OF PAYMENT

PROCEDURES

4. BUYER SENDS AN IRREVOCABLE CORPORATE PURCHASE ORDER (ICPO). THIS STATES FULL DETAILS OF HIS ORDER AS IN THE PROFORMA INVOICE) AND MUST CONTAIN YOUR FULL BANK CONTACT INFORMATION INCLUDING:

NAME OF BANK, ADDRESS, PHONE AND FAX

NAME OF ACCOUNT

NUMBER OF ACCOUNT

NAME OF AN OFFICER AT THAT BANK WHO CAN VERIFY HIS FUNDS

THE ICPO ALSO CONTAINS A SENTENCE GIVING PERMISSION FOR A SOFT PROBE OF HIS ACCOUNT, THE ICPO MUST BE ON CORPORATE LETTERHEAD AND USUALLY BEGINS WITH THE PHRASE "...WITH FULL CORPORATE RESPONSIBILITY"...

5. SELLER CONTACTS BANK FOR SOFT PROBE TO PROVE BUYER'S ABILITY TO PROVIDE FUNDS.

6. BUYER AND SELLER SIGN SALES CONTRACT.

7. BUYER SUPPLIES PRE ADVISE LETTER OF CREDIT(L/C) THIS IS LIKE A DRAFT AND IS THE FIRST PAGE OF THE LETTER OF CREDIT. IT IS AN OUTLINE OF EVERYTHING IN THE PROFORMA AND L/C. IT ALLOWS THE SELLER TO REVIEW THE L/C TO BE CERTAIN THAT EVERYTHING IS INCLUDED CORRECTLY.

8. INSPECTION OF THE PRODUCT IS MADE BY BUYER OR AGENT IF DESIRED.

9. OPENING OF THE LETTER OF CREDIT.

10. PRODUCT IS SHIPPED.

11. PAYMENT OF L/C IS MADE WHEN DOCUMENTS ARE PRESENTED AT BUYER's BANK