Exhibit 10.28

         

         

        
          
            	 
      	 	 	 	 
      	 	 	 	 	 	 	 	
                    FX
      rate =

                  	 	 	
                     

                  	 	 	 	 	 	 	 
	
                    QUALYTEXTIL
      SA - reconciliation of Brazilian GAAP to US GAAP

                  	 	 	 	1.6872	 	 	 	 	 	 	 	 	 	 
	
                    Balance
      sheet as of April 30, 2008

                  	 	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
      	 	
                    Brazilian
      GAAP

                  	 	
                     

                  	 	
                    Reclass-

                  	 	 	
                    As

                  	 	 	
                    Translated

                  	 	 	
                     

                  	 	 	
                    Adjustments

                  	 	 	
                    US
      GAAP

                  	 
	 
      	 	
                    per
      Audit

                  	 	
                    Notes

                  	 	
                    ifications

                  	 	 	
                    reclassified

                  	 	 	
                    to
      USD

                  	 	 	
                    Notes

                  	 	 	
                    in
      USD

                  	 	 	
                    in
      USD

                  	 
	 
      	 	
                    report
      in BRL

                  	 	
                     

                  	 	 	 	 	
                    in
      BRL

                  	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
      	 	 	 	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
      	 	 	 	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
      	 	 	 	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    ASSETS

                  	 	
                    2008

                  	 	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
      	 	 	 	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    Current
      assets

                  	 	 	 	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    Cash
      and cash equivalents

                  	 	 	57,244	 	 
      	 	 	-	 	 	 	57,244	 	 	$	33,928	 	 	 	 	 	$	-	 	 	$	33,928	 
	
                    Clients

                  	 	 	2,023,192	 	 
      	 	 	-	 	 	 	2,023,192	 	 	 	1,199,142	 	 	 	 	 	 	-	 	 	 	1,199,142	 
	
                    Inventories

                  	 	 	3,653,348	 	 
      	 	 	-	 	 	 	3,653,348	 	 	 	2,165,332	 	 	
                    (a)

                  	 	 	 	1,143,590	 	 	 	3,308,922	 
	
                    Taxes
      recoverable

                  	 	 	202,570	 	 
      	 	 	-	 	 	 	202,570	 	 	 	120,063	 	 	 	 	 	 	-	 	 	 	120,063	 
	
                    Prepaid
      expenses

                  	 	 	130,013	 	
                    (f)

                  	 	 	(130,013	)	 	 	-	 	 	 	-	 	 	 	 	 	 	-	 	 	 	-	 
	
                    Other
      receivables

                  	 	 	232,612	 	
                    (f)

                  	 	 	(80,865	)	 	 	151,747	 	 	 	89,940	 	 	 	 	 	 	-	 	 	 	89,940	 
	 
      	 	 	6,298,979	 	 
      	 	 	(210,878	)	 	 	6,088,101	 	 	 	3,608,405	 	 	 	 	 	 	1,143,590	 	 	 	4,751,995	 
	 
      	 	 	 	 	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    Long
      term assets

                  	 	 	 	 	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    Taxes
      recoverable

                  	 	 	796,325	 	 
      	 	 	-	 	 	 	796,325	 	 	 	471,980	 	 	 	 	 	 	-	 	 	 	471,980	 
	
                    Judicial
      deposits

                  	 	 	197,925	 	 
      	 	 	-	 	 	 	197,925	 	 	 	117,310	 	 	 	 	 	 	-	 	 	 	117,310	 
	
                    Other
      receivables

                  	 	 	27,401	 	 
      	 	 	-	 	 	 	27,401	 	 	 	16,240	 	 	 	 	 	 	-	 	 	 	16,240	 
	 
      	 	 	1,021,651	 	 
      	 	 	-	 	 	 	1,021,651	 	 	 	605,530	 	 	 	 	 	 	-	 	 	 	605,530	 
	 
      	 	 	 	 	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    Permanent
      assets - net

                  	 	 	 	 	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    Intangible
      assets - trademarks

                  	 	 	-	 	
                    (f)

                  	 	 	313,094	 	 	 	313,094	 	 	 	185,570	 	 	 	 	 	 	-	 	 	 	185,570	 
	
                    Fixed
      assets

                  	 	 	2,189,117	 	
                    (f)

                  	 	 	(86,335	)	 	 	2,102,782	 	 	 	1,246,315	 	 	 	 	 	 	-	 	 	 	1,246,315	 
	 
      	 	 	2,189,117	 	 
      	 	 	226,759	 	 	 	2,415,876	 	 	 	1,431,885	 	 	 	 	 	 	-	 	 	 	1,431,885	 
	 
      	 	 	 	 	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    Total
      Assets

                  	 	 	9,509,747	 	 
      	 	 	15,881	 	 	 	9,525,628	 	 	$	5,645,820	 	 	 	 	 	$	1,143,590	 	 	$	6,789,410	 
	 
      	 	 	 	 	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
      	 	 	 	 	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    LIABILITIES
      AND SHAREHOLDERS' EQUITY

                  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
      	 	 	 	 	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    Current
      liabilities

                  	 	 	 	 	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    Suppliers

                  	 	 	1,327,681	 	 
      	 	 	 	 	 	 	1,327,681	 	 	$	786,914	 	 	
                     (a-1)

                  	 	 	$	1,172,885	 	 	$	1,959,799	 
	
                    Loans
      and financing

                  	 	 	1,040,087	 	
                    (g)

                  	 	 	(1,040,087	)	 	 	0	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0	 
	
                    Debentures
      bonds and loans

                  	 	 	4,177,976	 	
                    (g)

                  	 	 	1,040,087	 	 	 	5,218,063	 	 	 	3,092,735	 	 	 	 	 	 	 	 	 	 	 	3,092,735	 
	
                    Taxes
      and contribution

                  	 	 	1,190,582	 	 
      	 	 	 	 	 	 	1,190,582	 	 	 	705,656	 	 	
                    (b)

                  	 	 	 	42,090	 	 	 	747,746	 
	
                    Salaries
      and social charges

                  	 	 	328,644	 	 
      	 	 	 	 	 	 	328,644	 	 	 	194,787	 	 	 	 	 	 	 	 	 	 	 	194,787	 
	
                    Other
      debts

                  	 	 	304,929	 	 
      	 	 	 	 	 	 	304,929	 	 	 	180,730	 	 	
                    (c
      )

                  	 	 	 	393,964	 	 	 	574,694	 
	 
      	 	 	8,369,899	 	 
      	 	 	-	 	 	 	8,369,899	 	 	 	4,960,822	 	 	 	 	 	 	 	1,608,939	 	 	 	6,569,761	 
	 
      	 	 	 	 	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    Long
      term liabilities

                  	 	 	 	 	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    Other
      debts

                  	 	 	138,663	 	 
      	 	 	-	 	 	 	138,663	 	 	 	82,185	 	 	 	 	 	 	 	-	 	 	 	82,185	 
	 
      	 	 	138,663	 	 
      	 	 	-	 	 	 	138,663	 	 	 	82,185	 	 	 	 	 	 	 	-	 	 	 	82,185	 
	 
      	 	 	 	 	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    Shareholders'
      equity

                  	 	 	 	 	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    Paid
      in Capital

                  	 	 	1,507,701	 	 
      	 	 	 	 	 	 	1,507,701	 	 	 	893,611	 	 	 	 	 	 	 	 	 	 	 	893,611	 
	
                    Capital
      reserves

                  	 	 	712,909	 	 
      	 	 	 	 	 	 	712,909	 	 	 	422,540	 	 	
                    (e)

                  	 	 	 	(47,944	)	 	 	374,596	 
	
                    Accumulated
      losses

                  	 	 	(1,219,426	)	 
      	 	 	15,881	 	 	 	(1,203,545	)	 	 	(713,338	)	 	
                    (d)

                  	 	 	 	(417,405	)	 	 	(1,130,743	)
	 
      	 	 	1,001,184	 	 
      	 	 	15,881	 	 	 	1,017,065	 	 	 	602,813	 	 	 	 	 	 	 	(465,349	)	 	 	137,464	 
	 
      	 	 	 	 	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    Total
      Liabilities and Shareholders` Equity

                  	 	 	9,509,746	 	 
      	 	 	15,881	 	 	 	9,525,627	 	 	$	5,645,820	 	 	 	 	 	 	$	1,143,590	 	 	$	6,789,410	 


          

        

      

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      Exhibit
10.28

      NOTES
TO: QUALYTEXTIL SA - reconciliation of Brazilian GAAP to US GAAP

      Balance
sheet as of April 30, 2008

      


      
        
          
            	
                     (a)

                  	
                    Inventory
      reserve

                  	 	 
      	
                    (29,295)

                  
	 	 	 	 	 
	 
      	
                    Inventory
      in transit (a-1)

                  	 	
                     (a-1)

                  	
                    1,172,885

                  
	 	 	 	 	 
	 
      	
                    Total
      adjustment to inventory

                  	 	
                    (a)

                  	
                    1,143,590

                  
	 	 	 	 	 
	
                    (b)

                  	
                    Tax
      accrual based on US GAAP income

                  	 	
                    (b)

                  	
                    42,090

                  
	 	 	 	 	 
	
                    (c)

                  	
                    Legal
      fees not accrued under Brazilian GAAP

                  	 	 
      	
                    53,343

                  
	 	 	 	 	 
	 
      	
                    Misc.
      labor accrual

                  	 	 
      	
                    9,888

                  
	 
      	
                    Installment
      plan taxes not accrued - outsourcing sales contractor

                  	 	 
      	
                    271,353

                  
	 
      	
                    Installment
      plan taxes not accrued - outsourcing labor contractor

                  	 	 
      	
                    43,923

                  
	 	 	 	 	 
	 
      	
                    Sales
      representative commission not accrued

                  	 
      	 
      	 
      	
                    15,457

                  
	 	 	 	 	 	 
	 
      	
                    Total
      adjustment to other debts

                  	 
      	 
      	
                    (c)

                  	
                    393,964

                  
	 	 	 	 	 	 
	
                    (d)

                  	
                    Tax
      accrual based on US GAAP income

                  	 
      	 
      	 
      	
                    (42,090)

                  
	 	 	 	 	 	 
	 
      	
                    Various
      accruals per  (c ) above

                  	 
      	 
      	 
      	
                    (393,964)

                  
	 	 	 	 	 	 
	 
      	
                    Capital
      reserve reversal recognized as income

                  	 
      	 
      	 
      	
                    47,944

                  
	 	 	 	 	 	 
	 
      	
                    Inventory
      reserve

                  	 
      	 
      	 
      	
                    (29,295)

                  
	 	 	 	 	 	 
	 
      	
                       Net
      adjustment to accumulated losses

                  	 
      	 
      	
                    (d)

                  	
                    (417,405)

                  
	 	 	 	 	 	 
	
                    (e)

                  	
                    Capital
      reserve reversal recognized as income

                  	 
      	 
      	
                    (e)

                  	
                    (47,944)

                  
	 	 	 	 	 	 
	
                    (f)

                  	
                    To
      reclassify as intangible assets for trademarks and
    tradenames

                  	 
      	 
      	 
      	 
      
	 	 	 	 	 	 
	
                    (g)

                  	
                    To
      combine debt onto one line item