THE ROYAL BANK OF CANDA BRITISH COLUMBIA INTERNATIONAL

THE ROYAL BANK OF CANDA BRITISH COLUMBIA INTERNATIONAL CENTRE 1055 WEST GEORGIA STREET, VANCOUVER, B. C. V 6 E 3 P 3 CANADA CONFIRMATION OF TE. EX/CABLE PRE-ADVISED � DATE: APR 8, 1998 PLACE: VANCOUVER TELEX NO. 4720688 CA IRREVOCABLE DOCUMENTARY CREDIT NUMBER: 98/0501 -FTC ADVISING BANK’S REF. NO. ADVISING BANK: SHANGHAI A J FINANCE CORPORTION 59 HONGKONG ROAD SHANGHAI 200002, CHINA APPLICANT: JAMES BROWN & SONS # 304 -310 JALAN STREET, TORONTO, CANADA BENEFICIARY: HUAXIN TRADING CO. , LTD. 14 TH FLOOR KINGSTAR MANSION, 676 JINLIN. , SHANGHAI CHINA AMOUNT: USD 46, 980. 00(US DOLLARS FORTY THOUSAND NINE HUNDRED AND EIGHTEEN ONLY) EXPIRY DATE: MAY 15, 1998 FOR NEGOTIATION IN APPLICANTS COUNTRY GENTLEMEN: WE HEREBY OPEN OUR IRREVOCABLE LETTER OF CREDIT IN YOUR FAVER WHICH IS AVAILABLE BY YOUR DRAFTS AT SIGHT FOR FULL ONVOICE VALUE ON US ACCOMPANIED BY THE FOLLOWING DOCUMENTS: +SIGNED COMMERCIAL INVOICE AND 3 COPIES +PACKING LIST AND 3 COPIES, SHOWING THE INDIVIDUAL WEIGHT AND MEASUREMENT OF EACH ITEM. +ORIGINAL CRETIFICATE OF ORIGIN AND 3 COPIES ISSUED BY THE CHAMBER OF COMMERCE. +FULL SET CLEAN ON BOARD OCEAN BILLS OF LADING SHOWING FREIGHT PREPAID CONSIGNED TO ORDER OF THE ROYAL BANK OF CANADA INDICATING THE ACTUAL DATE OF THE GOODS ON BOARD AND NOTIFY THE APPLICANT WITH FULL ADDRESS AND PHONE NO. 77009910 +INSURANCE POLICY OR CERTIFICATE FOR 130 PERCENT OF INVOICE VALUE COVERING: INSTITUTE CARGO CLAUSES(A)AS PER I. C. C. DATED 1/1/1982 +BENEFICIARY’S CERTIFICATE CERTIFYING THAT EACH COPY OF SHIPPING DOCUMENTS HAS BEEN FAXED TO THE APPLICANT WITHIN 48 HOURS AFTER SHIPMENT. COVERING SHIPMENT OF; 4 ITEMS OF CHINESE CERAMIC DINNERWARE INCLUDING: HX 1115 544 SETS, HX 2012 800 SETS, HX 4405 443 SETS AND HX 4510 245 SETS DETAILS IN ACCORDANCE WITH SALES CONFIRMATION SHHX 98027 DATED APR. 3, 1998. 〖〗FOB/〖〗CFR/〖X〗CIF/〖〗FAS TORONTO CANADA SHIPMENT FROM SHANGHAI TO VANCOUER LATEST APRIL 30, 1998 PARTIAL SHIPMENT PROHIBITED TRANSSHIPMENT PROHIBITED DRAFTS TO BE PRESENTED FOR NEGOTIATION WITHIN 15 DAYS AFTER SHIPMENT, BUT WITHIN THE VALIDITY OF CREDIT. ALL DOCUMENTS TO BE FORWARDED IN ONE COVER, BY AIRMAIL, UNLESS OTHERWISE STATED UNDER SPECIAL INSTRUCTIONS: ALL BANKING CHARGES OUTSIDE CANADA ARE FOR ACCOUNT OF BENEFICIARY + ALL GOODS MUST BE SHIPPED IN ONE 20’ CY TO CY CONTAINER AND B/L SHOWING THE SAVE +THE VALUE OF FREIGHT PREP AID HAS TO BE SHOWN ON BILLS OF LADING +DOCUMENTS WHICH FAIL TO COMPLY WITH THE TERMS AND CONDITIONS IN THE LETTER OF CREDIT SUBJECT TO A SPECIAL DISCREPANCY HANDLING FEE OF US $35. 00 TO BE DUCTED FROM ANY PROCEEDS. DRAFT MUST BE MARKED AS DRAWN UNDER THIS CREDIT AND BEAR ITS NUMBER; THE AMOUNTS ARE TO BE ENDORSED ON THE REVERSE HEREOF BY NEG. BANK. WE HEREBY AGREE WITH THE DRAWERS, ENDORSERS AND BONA FIDE HOLDER THAT ALL DRAFTS DRAWN UNDER AND IN COMPLIANCE WITH THE TERMS OF THIS CREDIT SHALL BE DULY HONORED UPON PRESENTATION. THIS CREDIT IS SUBJECT TO THE UNIFORM CUSTOMS AND PRACTICE FOR DUCUMENTARY CREDITS(1993 REVISION)BY THE INTERNATIONAL CHAMBER OF COMMERCE PUBLICATION NO. 500. AUTHORIZED SIGNATURE