Purchase Order. Order may be placed by phone, followed by a complete written Purchase Order (P.O.) through fax or e-mail.

Mode of Shipment. FOB Cagayan de Oro City. The goods will be sent through air or sea of any specified vessel stated in the pro-forma.

Terms of payment. A 50% down payment is required upon sending the P.O. and 50% balance payment will be given two (2) weeks after the receipt of goods. Payment will be made via telegraphic transfer to Bank of the Philippine Island, Velez Street, Cagayan de Oro Branch, Peso Savings Account No. 2043-1969-39 or Dollar Savings Account No. 2044-0027-71 under the Account Name of Salay Handmade Paper Industries, Inc. (SHAPII). Production of order will commence upon confirmation of the down payment and SHAPII's policy will remain as "no down payment, no shipment".

All goods shall remain as legal property of SHAPII until full payment has been received. However, the risk is passed on to the buyer at the time of dispatch which is FOB Cagayan de Oro City as stated. If the buyer commits a breach of his obligations to SHAPII, including failure to pay for the goods by the due date, SHAPII shall have the right to make legal actions against the buyer.

The buyer shall notify SHAPII within five (5) days after the receipt of wrong, faulty or damaged goods. Failure to give notice within the agreed period shall render the buyer liable for payment of all the goods as invoiced and the buyer shall have no further right to reject goods or recover any compensation for them. Goods returned shall not then be accepted.

Force Majeure. If SHAPII is prevented from delivery due to causes beyond unreasonable control, e.g. war, industrial unrest, fire, trade dispute, etc, the pro-forma/contract shall either be fulfilled as soon as circumstances permit, or cancelled, or re-negotiated.

Nature of products. The buyer is aware that since each piece of paper is individually handmade, there will be variations with regards to color, size, and texture from time to time which is inherent in the seasonality of the grasses and flowers used throughout the year.

Good business relationship. Both shall manage their personal problems and keep professionalism on top.