Pay claiming bank's attentions to the following:

Claim reimbursement by means of a Time draft

A Credit available by acceptance

1.Name of Issuing Bank Place and date of issue

Dresdner Bank Hamburg, 15 April, 200 x

To: China National Light Indus- This Credit is advised through

trial Products Imp. & Exp. ICBC, Tianjin

Corp., Tianjin Branch,

Tianjin

Dear Sirs,

By order and for account of the applicant, we hereby issue an Irrevocable Documentary Credit No. H169087 for USD25,730.00 to expire on 31 May, 200× at Tianjin available with The Industrial and Commercial Bank of China, Tianjin by acceptance against beneficiary's draft at 90 days sight drawn on ICBC, Tianjin (advising bank) and the documents detailed herewith:

______________________________________________________________________________

Partial shipments not allowed. Transhipment allowed.

All charges outside Issuing Bank's country including acceptance commission are for account of beneficiary.

______________________________________________________________________________

If this Credit shall be duly accepted on presentation to drawee bank and duly honoured at maturity.

______________________________________________________________________________

Bank-to-Bank Instructions:

Accepting bank is to draw their time draft on Bank of America, New York payable at a fixed future time i. e. maturity of accepted beneficiary's drafts.

Reimbursements under this Credit are subject to the Uniform Rules for Bank-to-Bank Reimbursements under Documentary Credit, ICC Publication No. 725.

2.

From: Dresdner Bank, Hamburg

To: Bank of A.merica, New York

Reimbursement Authorisation

We hereby issue a Reimbursement Authorisation to you to accept and pay a time draft drawn on you subject to Uniform Rules for Bank-to-Bank Reimbursements under Documentary Credits, ICC Publication No. 725 upon receipt of such draft presented by the Claiming Bank——The Industrial and Commercial Bank of China, Tianjin in accordance with the following:

(1)Credit number: H169087

(2)Currency and amount: USD25, 730. 00

(3)Additional amounts payable: no

(4)Claiming Bank: ICBC, Tianjin

(5)Parties responsible for charges: beneficiary

(6)Tenor of draft: maturity of accepted beneficiary's draft

(7)Drawer: ICBC, Tianjin

(8)Party responsible for acceptance commission: beneficiary

3.

beneficiary's draft

Due 3 August, 200×

Exchange for USD25, 730. 00 Tianjin, 4 May, 200×

At 90 days sight pay to the order of

Ourselves the sum of

US dollars twenty five thousand seven hundred and thirty only

Drawn under Dresdner Bank, Hamburg L/C No. H169087 dated 15 April, 200×.

To The Industrial and Commercial

Bank of China, Tianjin For China National Light

Industrial Products Imp.

& Exp. Corp., Tianjin

Branch, Tianjin

signature

ACCEPTED

5 May, 200×

to mature

3 Aug., 200×

For

The Industrial and

Commercial Bank of

China, Tianjin

signature

4.Please fill the following particulars in two blank forms to write a Letter of Reimburse Claim and to issue a Time Draft:

(1)Addressee or drawee: Bank of America, New York

(2)Sender or drawer: The Industrial and Commercial Bank of China, Tianjin

(3)Amount: USD25,730.00

(4)Date of Letter of Reimbursement Claim and Draft: 24 July, 200×

(5)Predetermined reimbursement date: 3 Aug., 200×

(6)Payee: ICBC, Tianjin

(7)Accounting procedure: crediting our Head Office account with you under your telex advice to us quoting our Ref. No. BP87654321.

(8)Drawn clause: Drawn under Dresdner Bank, Hamburg L/C No. H169087 dated 15 April, 200×

by the issuing bank NOT to honour the claim. In accordance with the URR725, the reimbursing bank should:

(1)( )request the claiming bank to cancel the claim.

(2)( )instruct the claiming bank to contact the beneficiary.

(3)( )honour the claim and debit the issuing bank's account.

(4)( )dishonour the claim as per the issuing bank's instruction.

Please fill the following particulars in a credit form to issue a Red Clause credit.

(1)issuing date: 6 June, 200×

(2)Credit No. 256734

(3)Credit amount: AUD64,000.00 (say Australian dollars...)

(4)expiry date: 31 July, 200×

(5)available with the advising bank by negotiation

(6)shipment date: 16 July, 200×

(7)special condition

"The Issuing Bank authorises the Negotiating Bank to pay 60% of the amount of the Credit in advance to the beneficiary against the following presentations:

Ⅰ. a receipt for the advance duly signed by the beneficiary;

Ⅱ. an undertaking from the beneficiary to utilize the funds to purchase and pack the goods;

Ⅲ. the undertaking of the beneficiary to present full set of documents as stipulated in the Credit to the Negotiating bank within the expiry of the credit.

After the advance payment has been made to the beneficiary, the Negotiating Bank may claim reimbursement to be supported by the receipt and undertaking on the Issuing Bank which will reimburse the negotiating bank immediately.

Upon negotiation of documents presented by the beneficiary, the advance payment for 60% of the credit amount will be deducted from the whole negotiating amount for beneficiary's refundment. The remaining approximate 40o-/o of the invoice value will be claimed by the Negotiating bank on the Issuing Bank for its reimbursement. "

Red Clause Credit

Name of Issuing Bank Place and date of issue

Bank of Australia, London, (1) ____________

Name of Beneficiary Advised through

To: Marlin Wool Company, Melbourne Bank of Australia, Melbourne

Dear Sirs,

At the request and on the instructions of (name and address of the applicant), we hereby issue an Irrevocable Documentary Credit No. (2) ______ for (3) ______ (say ____________) to expire on or before (4) ______ at Melbourne (5) __________________ of your draft for 40% of the invoice value drawn at sight on us against the presentation of the documents detailed herein:

① Commercial invoice in triplicate.

② Full set clean on board ocean bills of lading made out to order endorsed in blank marked "freight prepaid".

③ Packing list in triplicate.

Evidencing shipment from London to Melbourne not later than (6) ______.

Partial shipments not allowed. Transhipment allowed.

(7)Special condition

____________________________________________________________

____________________________________________________________

Instructions to the Negotiating Bank

All shipping documents in compliance with the terms and conditions of the credit shall be forwarded by you immediately to us for beneficiary's refundment of 60% advance payment and claiming your reimbursement of 40% invoice value.

We engage with drawers and bona-fide holders of draft (s) drawn under and negotiated in compliance with the terms and conditions of the credit that such draft (s) shall be duly honoured upon due presentation.

This Credit is subject to UCP 600.

Yours faithfully

Bank of Australia,

London

dignature(s)

provide it with notice of when they will be debiting the Issuing Bank's account to pay a reimbursement claim. This notice is defined as ______. This requirement is placed in the Reimbursement Authorisation and in the credit to indicate the requirement for pre-debit notification from the Reimbursing Bank to the Issuing Bank and number of day within which the issuing bank has to be notified.

into a financing arrangement with a bank whereby it will periodically have the bank pay its suppliers the amounts owed and it will then repay the bank in the following period. The motivation for the company’s behavior. is most likely to:

A. improve its current ratio.

B. improve its relations with its suppliers.

C. manage the timing of operating cash flows.