Summery and Disclosure of procedures
To: EURO PROVIDER
This is now the currency exchange contract, please read it very carefully. The Euro Provider will be
required to open an escrow account at their bank. When the Euro Provider's bank opens the Escrow
Account, their bank shall issue a letter addressed to the Euro-Provider acknowledging the establishment
there for the exchange of the currencies addressed in the exchange contract lodged with their bank.
Upon receipt of the escrow letter, signed by two bank officers from the Euro provider, the USD
Provider's bank will send a Pre-advise to the Euro-Provider's Bank, mentioned in the contract and the
Euro provider's bank will respond with a positive answer and the USD Provider's bank will send a MT-
103/23 to Euro Provider's bank in the amount of $49.5 Million USD, first tranche.
Euro Provider's bank will respond with the cash equivalent in Euros into the Escrow Account, less the
fifteen (15%) percent discount. There is a two (2%) assignment charged that the Euro Provider must
agree to pay the USD Provider, as this transaction will be assigned to a US Federal Reserve Platform
Trader. A separate pay order must be signed and lodged and acknowledged by Euro Provider's bank and
will be included in the escrow instructions.
The Escrow Agent will follow the escrow instructions supplied by the USD Provider; all fees will be paid
from this escrow account. The Euro Provider will net eight (8%) percent of the total tranches and the
fee/commissions will stay the same. The Euro Provider will;
1. Open Escrow account at his bank.
2. Bank issues an Escrow account acknowledgement letter.
3. USD & Euro Providers sign an escrow agreement and assignment letter in addition to the currency
4. Euro provider's bank acknowledges receipt of the Currency Contract by two (2) bank officer's
signatures on copy of contracts.
5. USD Provider's bank sends Pre-advise to Euro Provider's Bank
6. Euro Provider's bank sends Pre-Advise to USD Provider's Bank
7. MT-103 USD moves first.