Whenever you are desirous of conducting barter trade, you will be entitled to approach OTEN members to secure your requirements.  You will be directed to them through trade directories which are published on a quarterly basis and will have access to the OTEN Info Hotline using either telephonic or fax communications and in due course electronic media communications.  Additionally, the franchisee and broker assigned to you will assist you in meeting your requirements.  The prime documents which enable you to interact with other Oregon Trade Expansion Network members are:

1. The XXX, which as its name implies, is a method of recording transactions between two parties, namely the buyer and the seller.  The transaction itself is the underlying obligation by the buyer to supply merchandise to the system as a whole to offset the purchase which he is about to make and vice a versa.

2. Trade LOC’s

3. Trade Due Bills

HOW OTEN ACTUALLY WORKS. - Please refer to the brochure for a detailed explanation of how barter transactions are dealt with in your books, and for OTEN procedures attached.

 ITS REALLY  VERY SIMPLE!!!

 As opposed to a traditional Barter transaction, namely the exchange of goods or services between two direct parties for equivalent value, a transaction concluded through the Oregon Trade Expansion Network creates a different type of trade obligation in which both buyer and seller have the benefit of supplying and obtaining their requirements through a larger selection of traders who form the nucleus of the Oregon Trade Expansion Network.  Accordingly, each transaction will interact through the system in the form of non specific, but mutually reciprocal trade debits and credits.  The financial implications thereof are as follows:

 AS A SELLER

Having obtained positive identification and authorization for the transaction (if required) and having received a XXX from the buyer in evidence thereof, the XXX is sent to OTEN for central processing. When processed, this will create a trade credit of the appropriate value in your favor in the Oregon Trade Expansion Network. This trade credit may be applied from time to time to the purchase of your ongoing needs from the available pool of goods and services offered by member traders within the system.

 AS A PURCHASER

The value of each transaction will generate a corresponding trade debit obligation to the Oregon Trade Expansion Network.

The consequence thereof is as follows:

1. All such transactions will be regulated and controlled strictly in accordance with the rules and regulations of the OTEN Trading Plan, which incorporates the Rules and Regulations, Barter Trade Practices and a Code of Ethics applicable thereto.

2. The buyer and seller accept the implications of the rules and the obligations and risks associated therewith.  i.e.  As a buyer you will be required to clear your outstanding trade obligation to supply goods or services to the appropriate value in accordance with member traders requests, alternatively, to make payment to the Oregon Trade Expansion Network or its nominee in cash should you be unable or unwilling to supply goods or services as and when required, or should you be in breach of the rules and regulations of the OTEN Trading Plan.

As a Seller the processing of your trade credits allows you the ability to draw from the pool of available goods and services as offered by the Association’s trader members from time to time, noting that such credit is not specific to any one member trader but to the general body of members who are indebted to the system as well as those seeking further trades.  Trade credits are non redeemable in cash from the system and must be consumed from the availability of goods and services on offer through the Oregon Trade Expansion Network.  XXX are not to be construed as legal tender, they cannot be redeemed for cash and are not negotiable. Trade credits and trade debits are simply book entries within the system.  Barter is always conducted on a voluntary basis.  The seller is obliged to sell his goods or services at regular retail or advertised prices or at a reasonable value.  In the case of large transactions, i.e. construction work, prices should be in accordance with the realms of competitive pricing within the industry concerned. 

Failure to adhere to these requirements will constitute a breach of the ethical business practices of barter trade and may result in suspension of membership.  Capex Inc has no responsibility other than recording the transaction in the ordinary course of the business and barter transaction disputes are only between the buyer and seller.  OTEN is not responsible for the use of trade debits and credits by unauthorized persons nor for transactions that do not comply with the rules and regulations of the OTEN Trading Plan.  A seller of goods or a supplier of services is therefore required to acknowledge and accept the limited liability of Oregon Trade Expansion Network and simultaneously to accept the risk associated with open trade credits within a system of this nature.  The seller is obliged to generate a supply of goods or services according to the general undertaking given by it at the time of becoming a member of the Oregon Trade Expansion Network to the value agreed upon and specified in the application for membership form.  This is a formal and binding undertaking.