**Expanded Appendix**
The appendix provides critical supporting documents and financial details that validate Boaz Trading PLC’s operational and strategic plans. Below is a detailed breakdown:
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### **1. Supplier Contracts (Hawassa Industrial Park)**
**Contract Overview**:
- **Parties**: Boaz Trading PLC and Hawassa Industrial Park Management.
- **Term**: 5 years (2024–2029), renewable upon mutual agreement.
**Key Clauses**:
1. **Pricing & Payment**:
- Fixed cotton price of 250 ETB/kg for the first 2 years, with annual adjustments tied to Ethiopia’s CPI.
- 30% advance payment, 70% upon delivery.
2. **Delivery & Quality**:
- Monthly deliveries of 2,000 kg GOTS-certified organic cotton.
- Penalty of 5% invoice value for late deliveries or subpar quality.
3. **Sustainability Commitments**:
- Zero-waste production: Hawassa Park recycles 90% of fabric scraps.
- Annual third-party audits by **Control Union Certifications**.
4. **Compliance**:
- Adherence to Ethiopia’s **Labour Proclamation No. 1156/2019** (minimum wage: 3,000 ETB/month).
- AGOA compliance for U.S.-bound exports.
**Renewal Terms**:
- Automatic renewal if Boaz achieves 80% on-time payment history.
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### **2. Cannes Partnership Agreement**
**Parties**: Boaz Trading PLC and Cannes Film Festival Organizers.
**Term**: 3 years (2024–2027).
**Key Terms**:
1. **Event Activation**:
- **Pop-Up Store**: 50 sqm space at La Croisette (cost: 2.75M ETB/year).
- **VIP Gifting**: 500 T-shirts in Cannes gift bags (value: 4,125,000 ETB).
2. **Marketing & Promotion**:
- Co-branded social media campaigns (Boaz + Cannes Instagram).
- Featured in Cannes’ official press kit and mobile app.
3. **Revenue Sharing**:
- Boaz retains 70% of pop-up sales; 30% to Cannes organizers as commission.
- Jointly owned IP for co-designed collections (e.g., “Cannes x Boaz”).
4. **Logistics**:
- Ethiopian Airlines handles shipping (sponsored 50% of costs).
- Customs clearance via Djibouti port under AGOA.
**Termination Clause**:
- Either party may exit with 6-month notice if revenue falls below 10M ETB/year.
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### **3. Cash Flow Projections (ETB)**
**Assumptions**:
- **Local Line**: 15,000 units/year at avg. 660 ETB.
- **Cannes Line**: 1,200 units/year at 5,500 ETB.
- **Operating Expenses**: 17.875M ETB (Year 1).
**Monthly Cash Flow (Year 1)**:
| **Month** | **Inflows** | **Outflows** | **Net Cash Flow** | **Cumulative** |
|-----------|--------------|---------------|--------------------|-----------------|
| Jan | 500,000 | 8,000,000 | (7,500,000) | (7,500,000) |
| Feb | 750,000 | 2,500,000 | (1,750,000) | (9,250,000) |
| Mar | 1,200,000 | 2,500,000 | (1,300,000) | (10,550,000) |
| Apr | 1,500,000 | 3,000,000 | (1,500,000) | (12,050,000) |
| May | 2,000,000 | 3,000,000 | (1,000,000) | (13,050,000) |
| Jun | 2,500,000 | 3,000,000 | (500,000) | (13,550,000) |
| Jul | 3,000,000 | 3,000,000 | 0 | (13,550,000) |
| Aug | 3,500,000 | 3,000,000 | 500,000 | (13,050,000) |
| Sep | 4,000,000 | 3,000,000 | 1,000,000 | (12,050,000) |
| Oct | 4,500,000 | 3,000,000 | 1,500,000 | (10,550,000) |
| Nov | 5,000,000 | 3,000,000 | 2,000,000 | (8,550,000) |
| Dec | 6,600,000 | 3,000,000 | 3,600,000 | (4,950,000) |
**Year-End**: Cumulative cash flow: **(4.95M ETB)**.
**Breakeven**: Projected by Q2 2025.
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### **4. Supporting Documents**
- **GOTS Certification**: Validates organic cotton sourcing.
- **AGOA Compliance Report**: Ensures duty-free U.S. export eligibility.
- **Ethiopian Investment Commission Approval**: License for industrial park operations.
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This appendix underscores Boaz Trading PLC’s operational rigor, strategic partnerships, and financial viability, providing investors with transparency and confidence in the venture’s execution.