SALESCONTRACT

S/CNo.:GH361

Date:Dec.7th,

Signedat:Shanghai

Sellers:SHANGHAIIMP&EXPCO.,LTD

Address:101ZHONGSHANROADSHANGHAI,CHINA

Tel:+86-21-83859621Fax:+86-21-87655699

Buyers:BRITISHROYALCO.,LTD.

Address:22wellingtonStreetLONDON,ENGLAND

Tel:+44-03-2956312Fax:+44-03-2956313

Theselleragreestosellandthebuyeragreestobuytheundermentionedgoodsonthetermsandconditionsstatedbelow.

Marks

Description&Specification

Quality

UnitPriceandtradeterms

Amount

No.GH361

B．R．CO.

LONDON

1-120

Men'sT-shirt

55%TERYLENE45%COTTON

Large(L)

Medium(M)

Small(S)

pieces

3000pieces

1000pieces

CIFC3LONDON

USD10PERPIECE

USD10PERPIECE

USD10PERPIECE

USD0.00

USD30000.00

USD10000.00

--C3

USD1800.00

TOTAL:6000piecesUSD58200.00

1.TOTALAMOUNT:SAYU.S.DOLLARSFIFTYEIGHTTHOUSANDANDTWOHUNDREDONLY.

2.Packing:

Eachpieceinaploy-bag,12ploy-baginaboxand50boxestoacarton.

3.Timeofshipment:

TobeeffectedonorbeforeDec.31th,.Partialshipmentandtransshipmentareallowed.

4.PortofLoading&Destination:

ShipmentfromShanghaitoLondon.

5.Insurance:ThesellershallcoverinsuranceagainstAllrisksandwarrisksfor110%ofthetotalinvoicevalueaspertherelevantoceanmarinecargoclauseofP.I.C.C.datedJAN.1st,1981.

6.TermsofDelivery:

ByconfirmedandtransferableL/CtobeavailablebysightdrafttoreachthesellersbeforeDec.25th,andtoremainvalidfornegotiationinChinauntil15daysaftertheaforesaidtimeofshipment.

7.Documents:

TheSellershallpresentthefollowingdocumentsrequiredtothebankfornegotiation:

1)FullsetofcleanonboardOcean/CombinedTransportation/LandBillsofLadingandblankendorsedmarkedfreightprepaidnotifyingappliant;

2)Signedcommercialinvoicein4copiesindicatingContractNo.,L/CNo.andshippingmarks;

3)Packinglist/weightmemoin3copiesissuedbyseller;

4)CertificateofQualityin2copiesissuedbySGS;

5)Insurancepolicy/certificatein3copies(TermsofCIF);

6)CertificateofOriginin2copiesissuedbyCIQ;

8.Inspections:

TheSellershallhavethegoodsinspectedby15daysbeforetheshipmentandhavetheInspectionCertificateissuedbySGS.

9.TermsofPayment:

TheBuyershall30dayspriortothetimeofshipmentafterthisContractcomesintoeffect,openanL/CinfavoroftheSeller.TheL/Cshallexpire15daysafterthecompletionofloadingoftheshipmentasstipulated.

10.Claim:

ThebuyershallmakeaclaimagainsttheSeller(includingreplacementofthegoods)bythefurtherinspectioncertificateandalltheexpensesincurredtherefromshallbebornebytheSeller.TheclaimsmentionedaboveshallberegardedasbeingacceptediftheSellerfailtoreplywithin10daysaftertheSellerreceivedtheBuyer'sclaim.

11.LatedeliveryandPenalty:

ShouldtheSellerfailtomakedeliveryontimeasstipulatedintheContract,withtheexceptionofForceMajeurecausesspecifiedinClause13ofthisContract,theBuyershallagreetopostponethedeliveryontheconditionthattheSelleragreetopayapenaltywhichshallbedeductedbythepayingbankfromthepaymentundernegotiation.Therateofpenaltyischargedat1%forevery7days,odddayslessthan7daysshouldbecountedas7days.Butthepenalty,however,shallnotexceed5%ofthetotalvalueofthegoodsinvolvedinthedelayeddelivery.IncasetheSellerfailtomakedelivery10dayslaterthanthetimeofshipmentstipulatedintheContract,theBuyershallhavetherighttocanceltheContractandtheSeller,inspiteofthecancellation,shallneverthelesspaytheaforesaidpenaltytotheBuyerwithoutdelay.ThebuyershallhavetherighttolodgeaclaimagainsttheSellerforthelossessustainedifany.

12.ForceMajeure:

TheSellershallnotberesponsibleforthedelayofshipmentornon-deliveryofthegoodsduetoForceMajeure,whichmightoccurduringtheprocessofmanufacturingorinthecourseofloadingortransit.TheSellershalladvisetheBuyerimmediatelyoftheoccurrencementionedaboveandwithin3daysthereaftertheSellershallsendanoticebycouriertotheBuyerfortheiracceptanceofacertificateoftheaccidentissuedbythelocalchamberofcommerceunderwhosejurisdictiontheaccidentoccursasevidencethereof.UndersuchcircumstancestheSeller,however,arestillundertheobligationtotakeallnecessarymeasurestohastenthedeliveryofthegoods.Incasetheaccidentlastsformorethan10daystheBuyershallhavetherighttocanceltheContract.

13.Arbitration:

AnydisputearisingfromorinconnectionwiththeContractshallbesettledthroughfriendlynegotiation.Incasenosettlementisreached,thedisputeshallbesubmittedtoChinaInternationalEconomicandtradeArbitrationCommission(CIETAC),SHANGHAICommissionforarbitrationinaccordancewithitsrulesineffectatthetime