Swicofil AG Textile Services CH-6021 Emmenbrücke

Financing of business

1. Validity

For a l l business done with SWICOFIL AG Textile Services.

2. Basic rules

There are NO open credits at Swicofil AG unless we are covered by our credit insurance or by another 100 % safe financial tool - our all duty is to make sure we are paid in time - top priority: money must be here on due date! There are following two categories which can be applied:

Gerling credit insurance	Other Securities
Payment terms according to Gerling insurance policy	Prepayment
	L/C irrevocable + confirmed
	Bankguarantee by first class bank
	Avalized bank draft by first class bank
	ERG or BAWI coverage

3. Gerling inquiries

In order to facilitate fast Gerling inquiries we need to indicate to Gerling following points. If you provide us all information in the first instance we get a credit line much faster:

A) Full address

B) Name of board of directors

C) Legal status of company

D) Turnover figures (last 2 or 3 years) giving also the breakdown of sales to local market and sales to which major export countries

E) Total number of employees

F) Your personal judgement of management and staff

G) Activity information such as production programme, tons or m2 produced, evolution of these activities in recent past

H) Industrial equipment
What kind of machines, age of them, integration of production line downstream, capacity

I) Information on what rawmaterial from whom is used

J) Analyzis of commercial organization
- equipment
- sales problems
- problems with third parties
- market knowledge

K) Perspectives of the future
- capital investments
- changes of production programmes
- co-operations with partners

L) Possibilities/potential for SWICOFIL AG

Gerling has 5 categories of countries for financial risks

^Category 1	^Category 2	^Category 3	^Category 4	^Category 5
Countries with no general restriction - open payment terms are possible provided Gerling approves single customer	Countries with a general restriction – max 120 days open payment terms are possible provided Gerling approves single customer	Countries with general restriction on payment terms to be at least accepted drafts.	Countries with limited credit lines and general restriction on payment terms to be at least accepted drafts.	No insurance possible
Gerling does not want to publish the list as it is subject to contstant changes. We will check once we get into a business relationship. Anyhow please provide us all the above information to facilitate application for a credit line.

It is selfunderstood that once Gerling has refused to cover a single customer or an entire country we can only supply at safe payment terms (L/C, B/G, prepayment etc)

Letter of credit instructions

In order to avoid any amendments of credit conditions we ask all customers to consider the following points when opening an L/C:

1) The L/C must be irrevocable and confirmed by any prime Swiss Bank, preferably Credit Suisse First Boston.

2) The L/C must be payable at sight + available at the counters of the advising Swiss bank.

3) L/C amount and Quantity to read about

4) Expiry date of L/C should be at least 1 month after last shipment date. No latest date for shipment to be mentioned.

5) Goods description to be kept very simple

6) Partial shipment and transshipment must be always allowed

7) Only original documents to be legalized (only if absolutely necessary) - Legalizations are extremely costly!

8) Delivery dates never to be included in the L/C

9) All our prices are cash prices. For secured facilities of upto a maximum of 90 days please add EURO interest rate plus 3 % margin p.a. on top of price

10) All charges and commissions should be paid by applicant

Your co-operation is greatly appreciated.

Due date

Our 'General terms of sale' - para 13 stipulates:

The place of the execution of contract for buyer is always Emmenbrücke.

This means that customers obligation to pay for the goods which we sent the place and the date of execution is Emmenbrücke - or in other words:

The payment must be in our hands on the due date.

and not that the payment must be effected on the due date by the customer at his place! Delay interest is always EURO + 3 %; currently 6 + 3 % = 9 % p.a. It is calculated from the due date.

These facts are described by the Swiss law of obligations, article 74 (which forms an integral part of all our business concluded). This same is internationally valid and is ruled by the rules of conciliation and arbitration of the International Chamber of Commerce (Paris).