EXPLANATORY NOTE

CLAUSE 2: QUANTITY

1. Inspection cost shall be at buyer’s account:

This is because to ensure the integrity of the inspection process and have the most control
over the process, the buyer will be the one who takes responsibility for the inspection by
paying the cost. Buyer can work directly with the trusted inspector and have the objective
determination towards the quality of goods as agreed between buyer and seller. This is also
to avoid the risk that if the seller takes full control of the inspection process, there can be
some mischief which can cause disadvantages to the buyer.

CLAUSE 3: QUALITY

1. Information about the specification of the products is based on the official website:
https://m.made-in-china.com/product/Lovol-Af88-Af108-Crawler-Auto-Manual-
Collection-Rice-Harvester-1910401092.html
2. Inspection cost shall be at buyer’s account:

This is because to ensure the integrity of the inspection process and have the most control
over the process, the buyer will be the one who takes responsibility for the inspection by
paying the cost. Buyer can work directly with the trusted inspector and have the objective
determination towards the quality of goods as agreed between buyer and seller. This is also
to avoid the risk that if the seller takes full control of the inspection process, there can be
some mischief which can cause disadvantages to the buyer.

3. The test run needs 3 days to operate because:

- 1 day for the procedure at Cat Lai port (They claim that it only takes 1 day in total.
Source: https://saigonnewport.com.vn/ho-tro-khach-hang/pages/faq.aspx)
- 2 days for shipping the products to the place of use and the test run itself.
CLAUSE 5: DELIVERY

1. CIP Cat Lai Port:

Cat Lai Port is the biggest and most modern container port in Vietnam. With 12 meter-
water depth at berth,Cat Lai Port would be suitable for our Goods (Machinery). Moreover,
Cat Lai Port is linked to the National Highway No.1, the Inner and Outer Belt Highways,
HCM - Long Thanh - Dau Giay Highway via the Inter-province Highway 25 which allows
vehicles with loading capacity of up to 30 tons - which would make the transportation of
Goods quick and convenient. Besides, high capacity of 3,5 mil Teus per year as well as
modern IT terminal operation and management system contribute to the productive and
concise delivery process.

2. Time of delivery

It would refer to time when the Goods is transferred from the Seller to the Carrier on the
port of delivery.

3. Notice of delivery:

- Within 48 hours after the sailing date of the carrying vessel, shipment advice should
be notified to the Buyer in order to provide the Buyer the confirmation of shipment.
- Within 5 calendar days after the sailing date of the carrying vessel, one (01) set of
copied shipping documents should be notified to the Buyer in order to provide the
Buyer documents for preparation of import clearances in advance.

CLAUSE 6: PRICE

1. Price: 16,500 USD/unit

The price is fixed and provided by the Seller on the official website.
2. Buyer will be in charge and pay for unloading costs according to Incoterms 2020,
Publication 460 of the International Chamber of Commerce, Paris.
Clause 7: PAYMENT

1. Payment made in L/C As a trade finance tool, Letters of Credit are designed to
protect both exporters and importers. They can help you win business with new
clients in foreign markets. This means the exporter gets a guarantee of payment,
while offering the importer reasonable payment terms.
2. Saigon Commercial Joint Stock Bank (SCB) is the private bank with the largest total
assets, on the basis of voluntary consolidation of 3 banks: Saigon Commercial Joint
Stock Bank (SCB), De Nhat Commercial Joint Stock Bank (Fincombank), Vietnam
Tin Nghia Commercial Joint Stock Bank, Saigon Commercial Joint Stock Bank
(Consolidated Bank). Inheriting the inherent strengths of 3 banks including: total
asset size, network, technology and personnel. This is one of the banks with the
lowest service fees in Vietnam and professional operation in the field of
international payment.

CLAUSE 14: PENALTY

Both parties will agree to be forced to come to negotiation on the seriousness of the delay
caused by the Seller, there can be two cases:
- The Seller agrees to let the Buyer decide whether or not to refuse the goods,
depending on the severity of the delay anh how it affects the Buyer’s business.
- In case no final agreement is reached, the case will be heard under the governing
law (Article 418 Civil Code 2015)