Advance
Sales Contract

    


    
      
        	 
      	
                Contract
      No.:HZXS00004

              
	 
      	
                Venue:
      Haining

              


      

    

    


    
      
        	
                Seller(Party B):ZHEJIANG
      HONGZHAN NEW MATERIAL CO., LTD

              	 
      	
                Address:
      Wutongyuan district, Tongxiang, Zhejiang

              
	 
      	 
      	
                Tel:
      0573-88986299

              
	 
      	 
      	
                Fax:
      0573-88986355

              
	
                Buyer(Party A):HAINING
      MENGNU GROUP CO., LTD

              	 
      	
                Address:
      Leather Industrial Park, Haining, Zhejiang

              
	 
      	 
      	
                Tel:
      0573-87266074

              
	 
      	 
      	
                Fax:
      0573-87268594

              


      

    

    


    In
accordance with Contract Law of the People’s Republic of China and relevant
regulations, after consultations, the seller and buyer have agreed to sell and
buy the following goods according to the following provisions:

    I.  Name,
model, quantity, unit price, delivery date etc.


    
      
         


      

      
         


        
          

        

      

      
         


      

    

    


    
      
        
          	
                  Name

                	 
      	
                  Width

                	 
      	
                  thickness

                	 
      	
                  Color

                	 
      	
                  Quantity/meter

                	 
      	
                  Unit price/RMB

                	 
      	
                  Total

                  amount/RMB

                	 
      	
                  Delivery date

                	 
      	
                  Delivery location

                
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                  Recycled leather

                	 
      	
                  140cm

                	 
      	
                  1.4mm

                	 
      	
                  To be decided

                	 
      	
                  10000

                	 
      	
                  75

                	 
      	
                  750000

                	 
      	
                  By
      the end of November, 2010

                	 
      	
                  Haining

                
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                  Recycled
      leather

                	 
      	
                  140cm

                	 
      	
                  1.4mm

                	 
      	
                  To
      be decided

                	 
      	
                  20000

                	 
      	
                  75

                	 
      	
                  1500000

                	 
      	
                  By
      the end of December, 2010

                	 
      	
                  Haining

                
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                  Recycled
      leather

                	 
      	
                  140cm

                	 
      	
                  1.4mm

                	 
      	
                  To
      be decided

                	 
      	
                  20000

                	 
      	
                  75

                	 
      	
                  1500000

                	 
      	
                  By
      the end of January, 2011

                	 
      	
                  Haining

                
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                  Recycled
      leather

                	 
      	
                  140cm

                	 
      	
                  1.4mm

                	 
      	
                  To
      be decided

                	 
      	
                  40000

                	 
      	
                  75

                	 
      	
                  3000000

                	 
      	
                  By
      the end of February, 2011

                	 
      	
                  Haining

                
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                  Recycled
      leather

                	 
      	
                  140cm

                	 
      	
                  1.4mm

                	 
      	
                  To
      be decided

                	 
      	
                  480,000
      meters

                	 
      	
                  75

                	 
      	
                  39,000,000

                	 
      	
                  60,000
      meters per month from March to October, 2011

                	 
      	
                  Haining

                
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                  Total

                	
                    

                	 
      	
                    

                	 
      	
                    

                	 
      	
                    

                	
                  570,000
      meters

                	
                    

                	 
      	
                    

                	
                  RMB
      42,750,000

                	
                    

                	 
      	
                    

                	 
      


        

      

    


    
      
         


      

      
         


        
          

        

      

      
         


      

    

    


    
      	
              II.

            	
              Quality
      Standard:the width is
      140cm. The thickness is 1.4mm. Its pattern and color shall be delivered to
      the supplier one week before
production.

            


    

    
      	
              III.

            	
              Acceptance
      method:Party A
      shall assign QC to inspect at Party B’s site. The goods shall be
      dispatched after passing the inspection. Party B shall control the quality
      of the products for direct export.

            


    

    
      	
              IV.

            	
              Type
      of payment: after signing of the contract, Party A shall prepay 10% of the
      total price for the first month of the goods to Party B within one week of
      signing of the contract. The balance shall be paid in full within 30 days
      of the delivery.

            


    

    
      	
              V.

            	
              The
      goods provided by Party B must be such which is permitted to export by the
      State and Party B shall provide the State’s legal formalities. In case of
      violation, the legal liabilities caused shall be the responsibility of the
      seller.

            


    

    
      	
              VI.

            	
              Packing
      method:the paper
      pipe shall use the 5cm type with the thickness of wall at 5mm, and the
      external wrapper shall use two layers of PE payer. The length of each
      scroll shall be controlled between 25-35 meters. The minimum splicing
      shall be no less than below 7 meters. The number of splicing in a batch of
      goods shall be no more than 20% of the total quantity of the
      batch.

            


    

    
      	
              VII.

            	
              Force
      Majeure:

            


    

    In case
any party fails to perform the contract due to force majeure, it shall inform
the other party within 10 days of the end of the force majeure event to reduce
the loss caused to the other party. After obtaining the certificate of force
majeure from relevant organization, delay in performance, partial performance
and nonperformance shall be allowed, and the liability for breach of contract
can be exempted or partly exempted.

    
      	
              VIII.

            	
              The
      contract shall become effective after being sealed by Party A and Party B
      or the intermediary retained by Party B. Neither party shall arbitrarily
      alter or terminate the contract unless otherwise agreed in writing by
      Party A and Party B after
consultations.

            


    

    
      	
              IX.

            	
              Liability
      for breach of contract:

            


    

    
      1. If
Party A does not take delivery of goods within 30 days after the delivery date,
the advance paid by Party A under Article 4 of the contract shall serve as
deposit and shall not be refunded.

    

    2. If
Party B does not deliver the goods within 30 days after the delivery date, Party
B shall refund double deposit to Party A.

    3. In
case the variety, model, specification, pattern, quality of the goods delivered
by Party B does not conform to the stipulation, if Party A agrees to use it,
Party A and Party B can jointly renegotiate and refix the price; if it cannot be
used by Party A, Party B shall be responsible for the exchange or repair
according to the circumstances and bear the actual costs paid for the repair,
exchange or return of goods.


    
      
         


      

      
         


        
          

        

      

      
         


      

    


    
      	
               
      

            	
              4.
      In case of need to repair or repackaging due to the nonconformity of the
      packaging to the stipulation in the contract, Party B shall be responsible
      for the repair or repackaging and bear such expenses. If Party A does not
      request repair or repackaging and claims for indemnification, Party B
      shall pay the price difference between the inferior packaging and the
      up-to-standard packaging. Party B shall be liable for the damage or loss
      of goods resulted from impropriate
packaging.

            


    

    5. In
case the variety, model, specification, pattern, quality of the goods delivered
by Party B in advance or that of its excessive delivery does not conform to
stipulation, Party B shall bear the storage, maintenance costs actually paid by
Party A during Party A’s custody as well as the incurred loss not due to the
improper custody of Party A.

    
      	
              X.

            	
              Supplementary
      clause:

            


    

    1. The
Quality of products for direct export shall be the responsibility of Party
B.

    2. The
facsimile copy of this contract shall have the same validity.

    
      	
              XI.

            	
              Dispute
      Resolution:

            


    

    Any
dispute arising from or connected with this contract shall be dealt with by the
People’s Court of Tongxiang City if it cannot be resolved by the two parties
through amicable consultations.

    


    Seller
(Party B):(seal)

    ZHEJIANG
HONGZHAN NEW MATERIAL CO., LTD

    Signature:Liu
Jianfeng

    Title:CEO

    Date:
August 20, 2010

    


    Buyer
(Party A): (seal)

    HAINING
MENGNU GROUP CO., LTD

    Signature:Qian
Guohua

    Title:Manager

    Date:
August 20, 2010