**Expanded Appendix**
This section provides detailed documentation to validate Boaz Trading PLC’s operational, financial, and strategic foundations.
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### **1. Supplier Contracts (Hawassa Industrial Park)**
**Sample Contract Clause Highlights**:
| **Clause** | **Details** |
|---------------------------|-----------------------------------------------------------------------------|
| **Pricing & Payment** | - Organic cotton: 120 ETB/kg (fixed for 24 months).
- 50% payment upfront, 50% upon delivery. |
| **Delivery Terms** | - Minimum order: 1,000 kg/month.
- Penalty: 5% of order value/day for delays. |
| **Sustainability** | - Compliance with GOTS standards verified quarterly by third-party auditors. |
| **Force Majeure** | Excludes political unrest in supplier regions; requires 30-day notice. |
**Key Partners**:
- **Arba Minch Organic Cotton Cooperative**: 3-year exclusivity agreement for 80% of cotton supply.
- **Bahir Dar Dye Collective**: Annual renewable contract for plant-based dyes (20,000 liters/year).
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### **2. Cannes Partnership Agreement**
**Key Terms**:
| **Section** | **Details** |
|---------------------------|-----------------------------------------------------------------------------|
| **Scope** | Boaz receives a 100 sqm pop-up space at Cannes’ Village International (May 14–25, 2025). |
| **Exclusivity** | Cannes organizers agree not to host competing African apparel brands. |
| **Marketing Obligations** | Boaz covers 70% of pop-up costs; Cannes promotes the activation via social media (5M+ followers). |
| **Termination** | Either party may exit with 90-day notice if revenue share < 10% of projections. |
**Intellectual Property**:
- Boaz retains ownership of designs showcased at Cannes.
- Cannes organizers receive 15% royalty on sales from red carpet-featured products.
**Deliverables**:
- **Pre-Event**: Provide 500 gift bag T-shirts for Cannes attendees.
- **Post-Event**: Submit a post-mortem report with sales data and media impressions.
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### **3. Cash Flow Projections (ETB)**
**Year 1 Monthly Cash Flow**:
| **Month** | Inflows | Outflows | Net Cash Flow | Cumulative Cash Flow |
|--------------|---------------|---------------|---------------|-----------------------|
| **Jan** | 0 | 8,000,000 | -8,000,000 | -8,000,000 |
| **Feb** | 0 | 5,500,000 | -5,500,000 | -13,500,000 |
| **Mar** | 0 | 4,000,000 | -4,000,000 | -17,500,000 |
| **Apr** | 1,200,000 | 3,000,000 | -1,800,000 | -19,300,000 |
| **May** | 2,500,000 | 2,500,000 | 0 | -19,300,000 |
| **Jun** | 3,000,000 | 2,000,000 | +1,000,000 | -18,300,000 |
| **Jul** | 4,000,000 | 1,500,000 | +2,500,000 | -15,800,000 |
| **Aug** | 6,600,000 | 1,500,000 | +5,100,000 | -10,700,000 |
| **Sep** | 5,000,000 | 1,500,000 | +3,500,000 | -7,200,000 |
| **Oct** | 4,500,000 | 1,500,000 | +3,000,000 | -4,200,000 |
| **Nov** | 4,000,000 | 1,500,000 | +2,500,000 | -1,700,000 |
| **Dec** | 5,000,000 | 1,500,000 | +3,500,000 | +1,800,000 |
**Assumptions**:
- **Inflows**: Local sales (60%), Cannes/diaspora (40%).
- **Outflows**: Fixed costs (rent, salaries) = 1.2M ETB/month; variable costs (materials, marketing) = 1.3M ETB/month.
- **Breakeven**: Achieved in December 2024.
**Sensitivity Analysis**:
| **Scenario** | **Net Cash Flow** |
|----------------------------|-------------------|
| **Base Case** | +1,800,000 |
| **20% Sales Decline** | -2,500,000 |
| **ETB Depreciation (15%)** | -1,200,000 |
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### **4. Additional Supporting Documents**
1. **GOTS Certification**: Validates organic cotton sourcing and dyeing practices.
2. **AGOA Compliance Letter**: Issued by the Ethiopian Ministry of Trade for duty-free U.S. exports.
3. **Letter of Intent (LOI) from TeleBirr**: Confirms payment integration partnership.
4. **Ethiopian Investment Commission (EIC) Approval**: Tax holiday confirmation for Hawassa operations.
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This appendix provides investors with transparency into Boaz Trading PLC’s operational rigor, strategic partnerships, and financial viability.