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SALECONTRACTNO.CTHK07001ThisistoconfirmthefollowingbusinessmadeonDEC.05,2006betweenZhangzhouBaijiaIndustryCo.,Ltd.(hereinafterreferredtoastheBuyer)ontheonepart,andChinatexGrainsandOils(H.K.)Limited(hereinafterreferredtoastheSeller)ontheotherpart.Itisherebyagreed,thattheSellerwillsellandtheBuyerwillbuy,inaccordancewiththetermsandconditionsstipulatedhereinafter.SELLER:ChinatexGrainsAndOils(H.K.)LimitedUnit2503,SinoPlaza,255-257GloucesterRoad,CausewayBay,HongKongTel:(852)28652818Fax:(852)28653539BUYER:ZhangzhouBaijiaIndustryCo.,Ltd.JiaomeiIndustrialPark,LonghaiCityFujianProvince,ChinaTel:86-596-6796116Fax:86-596-6796255COMMODITY:BrazilianSoybeans,Crop2006/2007PACKING:InbulkSPECIFICATIONS:QUALITYALLOWANCE:Thesoybeansshallbeoffairmerchantablequalityatthetimeofloading.Followingspecificationstoapplyasweightedaverageofcargoquantity.Protein35.00basis,34.50%minimumOil18.50%basis,18.00%minimumBrokenbeans25.00%maximumMoisture14.00%maximumForeignmatters1.00%basis,2.00%maximumDamagedbeans8.0%basis,8.5%maximum-ofwhere:Heatdamagedbeans5.0%maximumThesoybeanssuppliedbytheSellershouldbefreefrompoisonousseeds/husksbuttolerancemaximum0.005pctcastorseedand/orcastorseedhusks.Iftheproteinisbetween35.00%downto34.50%,thesellershallpaytothebuyerandallowanceof1%ofthecontractpriceforeach1%proteindeficient(1:1)fractionsinproportion.Proteinmorethan35.00%shallbefreetobuyer.Ifoilislessthan18.50%downto18.00%minimum,thesellershallpaytothebuyeranallowanceof1%ofthecontractpriceforeach1%oildeficient(1:1),fractionsinproportion,oilabove18.50%freetobuyer.PHYTOSANITARYREQUIREMENTS:-ThesoybeanssuppliedbytheSellersshouldbecertifiedbyafirstclassindependentsurveyoratloadingports,statingthatthegoodsaresubstantiallyfreefromthefollowingdiseases,pestsandweedsdangeroustoplantsinaccordancewiththeregulationsoftheMinistryofAgricultureofthePeople’sRepublicofChina:-1.SorghumAlmumParodi2.SorghumHalepense(L)Pers.3.CuscutaSpp.4.TobaccoRingspotVirus5.ArabisMosaicVirus6.CallosobruchusAnalis(Fabricius)SaleContractNo.CTHK07001Page1of87.CallosobruchusPhaseoli(Gyllenhall)8.PhytophthoraMegaspermaDrechslF.SPGlycineaKuanandErwin9.SouthernBeanMosaicVirus10.TomatoRingspotVirusCHEMICALRESIDUESREQUIREMENTS:ThechemicalresiduesofthesoybeanssuppliedbytheSellers,whicharenotanaturalpartofthesoybeansshouldnotexceedtheregulationstipulatedbytheMinistryofPublicHealthofthePeople’sRepublicofChinaandsubstantiatedbyafirstclassindependentsurveyoratSeller’schoiceatloading:1.Arseniccompoundshallbemaximumof1ppm(1partpermillioncalculatedaccordingtothearseniousoxide(AS2O3)content).2.Mercuriccompoundshallnotbefound.3.Phosphidesshallbeamaximumof0.05ppm(0.05partpermillioncalculatedaccordingtothePH3content).4.Cyanidesshallbeamaximumof5ppm(5partspermillioncalculatedaccordingtotheHCNcontent).5.Malathionshallbeamaximumof3ppm(3partspermillion)6.Ethylenedebromide(EDB)contentshallnotexceedof10ppb(10partsperbillion).OTHERQUALITYPARAMETERS:-Sellersdonotguaranteeanyotherspecifications.Arrivalqualityandconditions,phytosanitaryandchemicalresiduescompliancewithCIQshallbeforBuyer’sriskandexpense.QUANTITY:30,000.00(thirtythousand)metrictons10%(tenpercent)moreorlessatSeller’soptionatcontractpremium.SHIPMENT:Apr.1st,2007toApr.30th,2007(bothdatesinclusive)exoneBrazilport.FOSFAextensionclauseappliestothiscontract.BillsofLadingdatedpriortoshipmentperiodallowedprovidedlastB/Ldateswithinshipmentperiod.PREMIUM/PRICE:-135U.S.centsperbusheloverCBOT2007Maysoybeansfutures(SK7)CNFFO1SBZhangzhouport,ChinaorXiamenport,China.PERFORMANCEDEPOSIT:-(A)BuyershallremitaperformancedepositofRMB3millionYuantoChinatexGrainsandOilsImp&ExpCo.,Ltd.,whoisauthorizedbySellertocollectandkeepsuchperformancedeposit.TheremittanceshouldbemadelatestbyDec.8,2006totheaccountdesignatedbyChinatexGrainsandOilsImp&ExpCo.,Ltd.(B)TheRMB1millionYuanoftheaboveperformancedepositshallbereturnedtoBuyerwithin5workingdaysuponSellerreceivesthefullyoperableletterofcredit.Thebalanceoftheaboveperformancedeposit,sayRMB2millionYuan,willberetainedbySelleruntilvesselcompletesdischargewithoutanyliabilitywhatsoevertoSellerandsettlementoffinalinvoiceswhichincludesdemurrageincurredordispatchearnedatdischargeport(s).Ifnodemurrage/detentionoccurs,theperformancedeposit,sayRMB2millionYuan,shallbereturnedtotheBuyerwithin5workingdaysafterthevesselisreleased,withoutanyliabilitywhatsoevertoSeller,fromthedischargeport(s).Thedispatch(ifany)willbesettledwithin30daysafterthevesselisreleased,withoutanyliabilitywhatsoevertoSeller.(C)Inbetweendateofcontractanddateofpayment,BuyershouldremitSaleContractNo.CTHK07001Page2of8additionalperformancedepositof5%ofcontractvalueforeach5%declineinthevalueofBuyer’snetpositionwithin48hoursoftheeventthatBuyer’snetpositionhasdeclinedinvalueby5%ormore.SellersarenotobligedtorepayanyamountsofperformancedepositiftheBuyer’snetpositionimproves,andallmoniesduetoSellerunderthisperformancedepositagreementwillberemittedtoSeller’saccountwithin48hours,failingwhichSellershavetherighttoholdBuyersinbreachofcontractandtoclaimdamagesresultingtherefrom.“Netposition”isdefinedas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