SALES CONFIRMATION

DATE：MAY 10，2004

OUR REFERENCE：IT123JS

SELLER: CHINA INTERNATIONAL TEXTILES I/E CORP. JIANGSU BRANCH

ADDRESS: 20 RANJIANG ROAD ，NANJING，JIANGSU，CHINA

BUYER： TAI HING LOONG SDN, BHD, KUALA LUMPUR

ADDRESS: 7/F, SAILING BUILDING, NO.50 AIDY STREET, KUALA LUMPUR, MALAYSIA

TEL：060-3-74236211 FAX：060-3-74236212

THE UNDERSIGNED SELLERS AND BUYERS HAVE AGREED TO CLOSE THE FOLLOWING TRANSACTION ACCORDING TO THE TERMS AND CONDITIONS STIPULATED BELOW：

DESCRIPTION OF GOODS:

QUANTITY : 300,000 YARDS 100% COTTON GREE LAWN

UNIT PRICE: HKD3.00PER YARD CIF SHANGHAI

AMOUNT HKD900,000.00CIF SINGAPORE

SHIPMENT： DURING JUNE/JULY，2004 IN TRANSIT TO MALAYSIA

PAYMENT： IRREVOCABLE SIGHT L/C

INSURANCE：TO BE EFFECTED BY SELLERS COVERING WPA AND WAR RISKS FOR 10% OVER THE INVOICE VALUE

THE BUYER THE SELLER

TAI HING LOONG SDN, CHINA INTERNATIONAL TEXTILES I/E CORP. BHD, KUALA LUMPUR. JIANGSU BRANCH

买方开来的信用证如下所示：

FROM: BANGKOK BANK LTD., KUALALUMPUR

DOCUMENTARY CREDIT NO.：98/12345

DATE：JUNE 12,2004

ADVISING BANK: BANK OF CHINA, JIANGSU BRANCH

APPLICANT: TAI HING LOONG SDN, BHD., P.O.B.666 KUALA LUMPUR

BENEFICIARY: CHINA INTERNATIONAL TEXTILES I/E CORP., BEIJING BRANCHAMOUNT: HKD 900,000.00 (HONGKONG DOLLARS NINE HUNDRED THOUSAND ONLY)

EXPIRY DATE: JUN 15, 2004 IN CHINA FOR NEGOTIATION

DEAR SIRS:

WE HEREBY ISSUE THIS DOCUMENTARY CREDIT IN YOUR FAVOR, WHICH IS AVAILABLE BY NEGOTIATION OF YOUR DRAFT(S) IN DUPLICATE AT SIGHT DRAWN ON BENEFICIARY BEARING THE CLAUSE: “DRAWN UNDER L/C NO. 98/12345 OF

BANGKOK BANK LTD., KUALA LUMPUR DATED JUNE 12, 2004” ACCOMPAINED BY THE FOLLOWING DOCUMENTS:

— SIGNED INVOICE IN QUADRUPLICATE COUNTER-SIGNED BY APPLICANT. COVERING ABOUT 300,000 YARDS (5% MORE OR LESS ACCEPTABLE) OF 65% POLYESTER, 35% COTTON GREY LAWN.

— FULL SET OF CLEAN ON BOARD OCEAN BILLS OF LADING MADE OUT TO ORDER, ENDORSED IN BLANK, MARKED :” NOTIFY BENEFICIARY”.

— MARINE INSURANCE POLICY OR CERTIFICATE FOR FULL INVOICE VALUE PLUS 50% COVERING ALL RISKS AND WAR RISKS FROM WAREHOUSE TO WAREHOUSE UP TO KUALALUMPUR INCLUDING SRCC CLAUSE

— PACKING LIST IN QUADRUPLICATE

— CERTIFICATE OF ORIGIN ISSUED BY BANK OF CHINA, NANJING.

— SHIPMENT FROM SHANGHAI TO PORT KELANG TO BE MADE AS SOON AS POSSIBLE. PARTIAL SHIPMENTS ARE ALLOWED TO BE DELIVERED ON TWO EQUAL SHIPMENTS.TRANSSHIPMENT PROHIBITED.

SHIPMENT CAN ONLY BE EFFECT UPON RECEIPT OF APPLICANT’S SHIPPING INSTRUCTIONS THROUGH L/C OPENING BANK NOMINATING THE NAME OF CARRYING VESSEL BY MEANS OF SUSEQUENT CREDIT AMENDMENT. THE SIGNATURE SIGHED BY THE APPLICANT ON CARGO ECEIPT MUST BE IN CONFORMITY WITH THE RECORD KEPT IN ISSUING BANK.(只有收到信用证修改方式通过开证行发过来的申请人装运指示，指定装运船名后方可发货；收货单据上申请人的签名必须与留在开证行的记录相符。)

DISPOSAL OF DOCUMENTS: IT IS A CONDITION OF THIS CREDIT THAT THE DOCUMENTS SHOULD BEFORWARDED TO US BY TWO CONSECUTIVE AIRMAILS, THE FIRST MAIL CONSISTING OF ALL DUCUMENTS EXCEPT ONE OF EACH ITEMS, OF MORE THAN ONE, TO BE SENT BY SECOND MAIL. （单据处理方法：本证条件之一是，所有单据应分两次连续，以航空邮寄本行。第一次邮寄包括所有各项单据，但如某单不止一份者，则留下一份第二次邮寄）

保证条款WE HEREBY ENGAGE WITH DRAWERS, ENDORSERS AND BONA FIDE HOLDERS THAT DRAFTS DRAWN AND NEGOTIATED IN CONFORMITY WITH THE TERMS OF THIS CREDIT WILL BE DULY HONORED ON PRESENTATION. SUBJECT TO《UCP 500》

BANGKOK BANK LTD., KUALALUMPUR (SIGNED) 修改之处：

1. 未指明信用证形式：为不可撤销信用证

2. 商品描述错误：应为100%纯棉绿色草坪

3. 有效期：时间太短，只有三天。应该是7月15日才对

4. 保险：应该是按发票金额10%投保，只投保水渍险和战争险。

5. 有数量溢短装条款，但是没有金额溢短装条款。

6. 合同价格没有说明单价以及是哪一种价格。CIF价格

7. 合同的装运日期不能使用模糊性语言。

8. 存在两个软条款：申请人指定船名以及签名必须一致。