1

To :

Banjska bb

Loznica, 15300, Serbia

To the Attention of Mr. Bozic Milenko

Vigonza, 08th December , 2014

Object : Commercial Offer BM-01 Bag SL35 Offer N 141208

Dear Sirs

first of all, we would like to thank you very much for the time and the interest you investing in our products .

During our meetings we saw and discussed different applications and new functions of the machine, how to improve the current production and development of the new products . Please, find here a summary of all arguments we saw and our best commercial and technical offer .

Anyway, we will be happy to look for and to find the best commercial and technical configuration for your machine .

This offer is strictly confidential .

Enjoy you reading and remind do not hesitate to contact me for any further information .

Yours sincerely. Walter Zanon Member of the Board

2

PAPER BAGS and SACKS MACHINE BM-01 BAG SL-35

Data Sheet and Technical Characteristics

Production Cruise Speed up to 200 Bags/min (variable on sizes) Size changeover simple and rapid in some case totally automatic Technology Gearless in the most shafts of work Final Cut-off and automatic stacker Automatic conveyor/stacker for single packs of bags

in the finish line (number of pieces per pack can be selected) Reel dimension supported:

Max Width 1250 mm Max Diameter 1300 mm

Tension Controller with brake through load cells . Automatic Control of the alignment of web papers Supervisor display for size changing, production control and full diagnostic system. Remote Control for Assistance and Technical support on standard LAN internet . Transversal vinyl glue applicators with automatic loading. Top Edge Fold Unit included

Dimension of Handles:

The twisted paper cord handles and the flat handles that can be produced are: Fixed steps 9,52 cm width Handles Height from 8 to 14 cm variable (simple operation, about 10 minutes) Patch length 19,05 cm Substance of patch web paper from 80 to 90 gr.

Diameter of the useable twisted paper cord from 4 to 6 mm ( outsourcing supplied ) OR Flat Handle 10-11 mm ( produced in-line by the Flat Web Making Unit as Optional )

Machine Dimension of BM-01 BAG SL-35

Width max 3 mt. Height max 2, 5 mt. Length max 17/18 mt. ( variable depending of the optional ) Encumbrance lateral area of handle making unit and glue unit, aboout 4 mt x 4 mt.

Touch Screen Monitor Language available :::: English ; Italian ; Customer language (translated with the help of the customer himself)

Sizes of Realizable Bags :

Substance of used paper from 70 gr. to 110 gr/sm

3

Total Cut length : min 32 , max 100 cm

Realizable Bags with fixed steps handle 9,52 mm, see the data below :

FACE Length/Width Bottom Height

22 cm to 70 cm 8 cm 27 cm to 50 cm

21 cm to 69 cm 9 cm 26,5 cm to 49,5 cm

20 cm to 68 cm 10 cm 26 cm to 49 cm

19 cm to 67 cm 11 cm 25,5 cm to 48,5 cm

18 cm to 66 cm 12 cm 25 cm to 48 cm

17 cm to 65 cm 13 cm 24,5 cm to 47,5 cm

16 cm to 64 cm 14 cm 24 cm to 47 cm

15 cm to 63 cm 15 cm 23,5 cm to 46,5 cm

16 cm to 62 cm 16 cm 23 cm to 46 cm

17 cm to 61 cm 17 cm 22,5 cm to 45,5 cm

18 cm to 60 cm 18 cm 22 cm to 45 cm

19 cm to 59 cm 19 cm 21,5 cm to 44,5 cm

20 cm to 58 cm 20 cm 21 cm to 44 cm

21 cm to 57 cm 21 cm 20,5 cm to 43,5 cm

22 cm to 56 cm 22 cm 20 cm to 43 cm

23 cm to 55 cm 23 cm 19,5 cm to 42,5 cm

24 cm to 54 cm 24 cm 19 cm to 42 cm

25 cm to 53 cm 25 cm 18,5 cm to 41,5 cm

26 cm to 52 cm 26 cm 18 cm to 41 cm

27 cm to 51 cm 27 cm 17,5 cm to 40,5 cm

28 cm to 50 cm 28 cm 17 cm to 40 cm

29 cm to 49 cm 29 cm 16,5 cm to 39,5 cm

30 cm to 48 cm 30 cm 16 cm to 39 cm

31 cm to 47 cm 31 cm 16,5 cm to 38,5 cm

32 cm to 46 cm 32 cm 17 cm to 38 cm

33 cm to 45 cm 33 cm 17,5 cm to 37,5 cm

34 cm to 44 cm 34 cm 18 cm to 37 cm

35 cm to 43 cm 35 cm 18,5 cm to 36,5 cm

4

Minimum and Maximum Web Paper and Handle Feeding Standard BM-01 max 104 cm

Maximum DimensionMaximum DimensionMaximum DimensionMaximum Dimension Feeding with ModFeeding with ModFeeding with ModFeeding with Modificationificationificationification

of the maof the maof the maof the machine =chine =chine =chine = max 106 cm *max 106 cm *max 106 cm *max 106 cm *

Standard BM-01 = min 40 cm

MMMMiiiinnnnimumimumimumimum DimensionDimensionDimensionDimension Feeding with ModificationFeeding with ModificationFeeding with ModificationFeeding with Modification of the machine = 22of the machine = 22of the machine = 22of the machine = 22 or or or or 18 cm **18 cm **18 cm **18 cm **

Maximum 120 cm

MMMMininininimumimumimumimum 30303030 (32(32(32(32 ) *) *) *) ********* Special Mechanical Modification of the Handles Feeders :

Maximum width to feed the handles : 104 cm ; standard included in the machine . Mechanically not possible other dimensions .

** Minimum width to feed the handles, up to 22 cm , It means remove and substitute actual pneumatic pistons and infrastructures in the inner

part of the Handle Feeders Units . It is possible to reach 18 cm with a significant mechanical modification cutting partially

the main frames of the Handle Feeders Units .

*** Minimum width web paper, pratically 30/32 cm, depending the positioning of the application of the handles, better with 1 cm more for each side.

5

Twisted and Flat Handle

Triangle shape Flat Handles

Twisted paper Cord Diameter Min 4 Max 6 mm

Flat Web Handle Web Paper Width 65/70 mm => Flat web 10/11 mm

Twisted and Flat :

Standard Width 9,52 cm

-Under Project 6,35 cm = Patch Length 12,70 cm

Standard Length :

adjustable

from 8 to 14 cm

Standard

usable

4 or 5 cm

Standard 19,04 cm

If O

NLY PATC

H = M

inim

um 17 cm

NEW !!

Triangle Shape Flat Handle

Seems smaller than the standard and

save about 25 % of web paper .

Available as optional .

Length : 8 - 14 cm

6

MINIMUM standard CUT Length ( TL )

Without handle and patch, 22/23 cm

With patch only, 27 cm

With patch only and feeders reduced, 22/23 cm

With patch and handle, feeders reduced, 26/27 cm

7

Composition of BM-01 BAG SL 35

Single Reel Stand: of series with automatic braking control, pneumatic shaft expansion diameter 76mm.

Top Edge Folding Unit is assembled with reel stand, included .

Handle making machine: Handles making unit of twisted paper cord OR Flat Handle, with automatic systems for vinyl and hot melt glue guns mechanical and electronic predisposition .

Handle feeders: the group is composed of strip feeders, strip cutters and patch applicators with predisposition to hot-melt and vinyl glue guns for the automatic application of the handles in the main web paper. In the group there is also the Upper Glue Applicator unit and the automatic film guide for the alignment of main web paper.

Folding Unit: completely automatic, it allows the formation and regulation of the bottom and the following close of the ended bag .

The Lower Glue Applicator is assembled in the Folding Unit, included .

Cut-off: Cut Off unit to cut the bag in the length with blade system and shaft cut control.

Conveyor and Stacker : composed by two belts , the system allows the bags to be taken after the cut and to be collected in order to pack piles of a variable number of bag pieces chosen by the customer .

Total Price of the standard BM-01 SL 35 Euro 754.000,00

8

Options and Accessories

NORDSON Glue Systems and Machines Nordson FULL gluer systems and machines supplied with :

HotMelt Melter 15 Kg, Altablue Serie, equipped with 4+2 guns and pipes for Handles Making Machine .

HotMelt Melter 7 Kg with 2 guns and pipes for Handle Feeders (right and left)

HotMelt Melter 7 Kg with 2 guns and pipes for Top Edge Folding unit and 1 gun and pipe for Flat Machine .

Full Vinyl system for 4 guns in the Handles Making Machine and 4 guns for Handles Feeders ( 2 x right + 2 x left ) .

Price for the NORDSON full system, installed in the machine : Euro 90.000,00

Gift Bag and Web Adhesive Top Edge Applications :

Composed by one pneumatic punched systems electronic controlled (left side), puncher 5x120 mm ( or similar ) to create the slit to insert the handle and Web Adhesive system to close the bag.

Samples produced as in the following pictures

The Web Adhesive system is composed by : 1 un-winder for silicon paper (diameter 2mm or 2,5mm max ) 1 gun for HotMelt coating head of 5 mm or similar Melter serie Nordson Altablue 4 Kg with hot pipe

Price for the Gift Bag and Web Adhesive Top Edge Application : Euro 50.000,00

9

Punched Handle Unit :

Mechanical Puncher Handles Unit

Composed by a mechanical puncher system to install in the cut off unit .

Handles punched :25x85 mm; removable puncher module easy and fast , including a second puncher module as spare part .

Handles 2 Holes punched : Two punched holes, diameter 6 mm or similar .

Samples produced as in the following pictures .

Price for Puncher Unit . Euro 55.000,00

Flat Web Making Unit

Flat Web Handle Unit Machine

This unit permit to produce the flat paper web in-line with the handle making machine to get flat handles. Its installed in the Patch Paper Reels Stand Unit, in the opposite side respect the reels. This unit is composed by a paper reel support with pneumatic shaft, automatic brake system, guide film automatic controlled, flat tools system, hot melt pipe and gun ( hot melt melter already included in the Top Edge Fold Unit ), servo drive motor and control . Paper substance for flat web : 80/90 gr/sm

Price for the Flat Web Making Unit Euro 55.000,00

10

Flat Bottom Application

This application permit to produce envelope bag with Flat Bottom shape ( e.g. with or without Web Adhesive, Gift Bag window and/or punched handles ) with all the main features of paper and machine performance currently in use .

The application is mounting in your actual machine by some little modification in the folding unit .

Price for the Flat Bottom Application Euro 35.000,00

Including : Application itself, including servo motor, driver and electronic advices . Software upgrade

Double Blade Shaft for Cut Off

This new application permit to cut bags up to 18 cm from a 36 cm total bag, full glued in the meddle or similar sizes .

Up to 18 cm

Cost for the supplying of the new double blade shaft, Euro 10.000,00

New cut

11

Final Pricing

-Total Price of the machine able to produce paper bags

and Sacks with paper twisted cord Euro 754.000,00 -Total Price of the Optional as listed above . Euro 295.000,00

Total Price of the machine full optional version as listed above Euro 1.049.000,00

Discounts : -First Customer or Machine sold in a new country Euro - 50.000,00 -Order confirmation no later than 30/03/2015 Euro -100.000,00

FINAL PRICE of the machine, full optional Euro 899.000,00

General Conditions

Delivery time : 4/6 months from the order confirmation

Local Taxes : Not Included

Packaging and Loading : Included in JB Machines

Transport : Excluded, Ex -work

Off load in your factory : Excluded

Machine Training at the : Training activities in Italy, in JB Machines, Included preliminary test .

Installation : 4 days for Installation and Training, Included

Validity of this offer : March 2015.

General Warranty : General warranty : 1 year .

Customs duty number : cod. 8441.80.00, 8441.90.10, 8441.20.00

Waiting some kind comments, Please, do not hesitate to contact me for any further information .

Yours Sincerely Walter Zanon