1.3 New order confirmation

Fashion Ltd

87 Nelson Road, London EC2M 3HG

Our ref. _______ Your ref. ______

March 23^rd, 20__

Duchaussoy & Fils

66 Avenue de l’Adour

66403 Anglet, France

Dear Mr Piemont,

Further to your offer of March 15^th 20__, we are pleased to enclose our revised formal Purchase Order. We have had to work particularly hard to obtain this order, however, and only managed to secure it at the cost of a 2.5% reduction in commission to ourselves.

We have already had occasion to comment at length on the changing nature of the market – people tend to buy increasing quantities of cheap South Asian and Chinese items and fewer quality items manufactured in Europe. This trend is becoming more marked every day, and it is more and more difficult to win business in the face of such competition.

We are quite willing to step up our advertising and really make a strong sales drive, because we are convinced that there is business to be obtained. However, unless you are prepared to make an all-round price cut, such an effort would have little chance of success. Indeed, as matters stand, we can only be pessimistic about the future of our pending enquiries.

We are anxious to hear what your position is on this matter.

Yours sincerely,

ElBullfinch

Elizabeth Bullfinch

Manager

AMERICAN ELECTRIC COMPANY, INC.

1066 Third Avenue, New York, New York 10081

Our ref. _______ Your ref. ______

February 7, 20__

Henderson Ltd.

Crossley House, Portsmouth

Sussex FN4 6LK

Dear Mr Aniston,

We refer to the quotation we mailed to you on January 28, 20__ concerning the installation of our electric radiators throughout your new plant in Bristol. As we have not yet received your decision, we were wondering whether you would welcome a further opportunity to discuss the quotation and your special requirements.

As we mentioned previously, all orders received before April 1, 20__ are subject to a discount of 15%, which makes our quotation particularly attractive. Moreover, we are prepared to reduce prices for Radiators Model AC8 and Model AC9 by 5% and 7% respectively if you order minimum 100 radiators of each Model.

We have asked Mr Geoffrey Fitzpatrik, our local agent, to make an appointment with you with a view to going over the quotation in detail.

We are at your disposal for any further information you may require.

Yours sincerely,

Alan Parker

Alan Parker

Manager

Henderson Ltd.

Crossley House, Portsmouth

Sussex FN4 6LK

Our ref. _______

Your ref. ______

February 15^th 20__

AMERICAN ELECTRIC

COMPANY, INC.

1066 Third Avenue,

New York,

New York 10081

Dear Mr Parker,

Thank you for your letter dated February 7^th 20__ and the telephone call of the same date confirming the special discount of 15% which you are willing to allow us.

On our part we confirm the acceptance of your terms and enclose our order No. JLO 789 for 500 Radiators Model AC8.

Looking forward to you prompt order confirmation and dispatch.

Sincerely yours,

James Aniston

James Aniston

Purchase Manager