Advance
Sales Contract

       
  

      
        
          
            	 
      	
                    Contract
      No.: HZXS00001

                  
	 
      	
                    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):Zhejiang
      Apollo Leather Products 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

                        	 
      	
                          600,000

                        	 
      	
                          75

                        	 
      	
                          39,000,000

                        	 
      	
                          75,000
      meters per month from March to October, 2011

                        	 
      	
                          Haining

                        
	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      	 
      
	
                          Total

                        	
                            

                        	 
      	
                            

                        	 
      	
                            

                        	 
      	
                            

                        	
                          690,000
      meters

                        	
                            

                        	 
      	
                            

                        	
                          RMB
      51,750,000

                        	
                            

                        	 
      	
                            

                        	 
      


                

              

            

          

        

      


      
        
           


        

        
           


          
            

          

        

        
           


        

      


      
        	
                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)

      Zhejiang
Apollo Leather Products Co., Ltd.

      Signature:Qian
Guohua

      Title:Purchasing
manager

      Date:
August 20, 2010