Document:

Unassociated Document

    Exhibit
      10.13

    CONSULTING
      AGREEMENT

    

    This
      Consulting Agreement (this “Agreement”) is entered into as of November 1, 2006
      by and between Sutor
      Steel Technology, Co., Ltd
      , a
      holding company organized under the laws of the British Virgin Islands, (
“Sutor” or the “Company”), Heritage Management Consultants, Inc., a corporation
      organized under the laws of South Carolina, USA (“Heritage” or the “Consultant”)
      and HFG International, Limited (“HFG”).

    

    RECITALS

    

    1.
      Consultant is willing to provide to Sutor and its affiliated companies
      (collectively, the “Company”) the consulting services identified in this
      Agreement. 

    

    2.
      Sutor
      is willing to engage Consultant as an independent contractor, and not as an
      employee, on the terms and conditions set forth herein.

    

    3.
      Except
      as otherwise provided for herein, HFG shall, on behalf of Sutor, be responsible
      for settling all payment obligations of Sutor under this Agreement.

    

    AGREEMENT

    

    In
      consideration of the foregoing and of the mutual promises set forth herein,
      and
      intending to be legally bound, the parties hereto agree as follows:

    

    1. Engagement.
      Sutor
      hereby engages Consultant as an independent contractor to provide outsourced
      professional management services for the purpose of assisting the Company in
      meeting its obligations as a US publicly traded company. Heritage will provide
      a
      qualified individual, who will act as the Company’s U.S. based executive (the
“Spokesperson”) for the purpose of communicating with the U.S. financial
      markets, and who will be supported by the Heritage staff. The scope of work
      includes the following:

     

    
      	·  	
              The
                Spokesperson will be supported by a staff financial
                analyst.

            

    

    
      	 	 

    

    
      	·  	
              Heritage
                representative(s) will visit the Company’s location(s) to conduct a
                detailed analysis of the Company in order to gain an understanding
                of the
                Company’s operations, strategies and financial
                projections.

            

    

    
      	 	 

    

    
      	·  	
              Heritage
                will develop an investor presentation for use in any
                transactions.

            

    

    
      	 	 

    

    
      	·  	
              Heritage
                will review and suggest edits to any written business plans in the
                English
                language that will be used for any
                transaction.

            

    

    
      	 	 

    

    
      	·  	
              Heritage
                will provide consultation to the Company during all fund raising
                activities during the term of the engagement. The Spokesperson will
                make
                “one on one,” web cast and teleconference presentations to investment
                banks and potential investors on behalf of the Company with the Company’s
                executive management in attendance. Heritage staff will coordinate
                communications between investment banks, investors and the
                Company.

            

    

    
      	 	 

    

    
      	·  	
              Heritage
                staff will assist the Company in the construction of both historical
                and
                projected financial models appropriate for use with the investment
                community. Heritage staff will conduct a detailed review of the financial
                projections for any potential issues prior to their release to the
                investment community.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

       

    

    
      	·  	
              On
                an ongoing basis, Spokesperson will be available to make “one on one”
                presentations, web cast presentations and teleconference updates
                to
                current investors, potential investors, and the analyst community
                as
                appropriate.

            

    

    
      	 	 

    

    
      	·  	
              Spokesperson
                will participate in investor conferences, as
                appropriate.

            

    

    
      	 	 

    

    
      	·  	
              Spokesperson
                will conduct quarterly investor conference calls, as appropriate.
                

            

    

    
      	 	 

    

    
      	·  	
              Spokesperson
                and the Heritage staff will be readily available to receive inquiries
                and
                coordinate responses to potential and current investors, buy and
                sell side
                analysts, the financial press, and the Securities and Exchange Commission.
                

            

    

    
      	 	 

    

    
      	·  	
              Heritage
                will work with the Company on proactively analyzing, identifying
                potential
                issues or areas of concern and constructing responses to potential
                questions which may result from the Company’s quarterly financial
                results.

            

    

    
      	 	 

    

    
      	·  	
              Heritage
                can assist the Company in interviewing; selecting and retaining an
                investor relations firm.

            

    

    
      	 	 

    

    
      	§  	
              Heritage
                will oversee the accuracy of the reporting of the Company’s financials
                with the stock exchanges and Bloomberg Financial Reporting, specifically
                to ensure the accurate reflection of updates required after a reverse
                merger transaction.

            

    

    
      	 	 

    

    
      	§  	
              Heritage
                will solicit independent research coverage with the sell side analyst
                community. 

            

    

    
      	 	 

    

    
      	·  	
              Heritage
                will review all press releases on financial results and material
                Company
                events.

            

    

    
      	 	 

    

    
      	·  	
              Heritage
                will assist the Company in the recruitment of independent directors
                as
                required to facilitate the Company’s listing on NASDAQ or the American
                Stock Exchange.

            

    

    
      	 	 

    

    
      	·  	
              Heritage
                will assist the Company in putting into place the necessary internal
                management resources that will enable the company to operate effectively
                in the capital markets on an ongoing
                basis.

            

    

    
      	 	 

    

    
      	·  	
              Heritage
                will assist the Company in the arrangement of Directors and Officers
                Liability Insurance coverage.

            

    

    
      	 	 

    

    
      	·  	
              Heritage
                will assist the Company in other work that should be done by Spokesman
                for
                listing in US capital market.

            

    

    

    2. Term.
      This
      Agreement will commence on the date first written above, and unless modified
      by
      the mutual written agreement of the parties, shall continue for a period of
      one
      year. 

    

    3. Compensation.

    

    a. In
      consideration of the services to be performed by Consultant, Sutor agrees to
      pay
      Consultant one hundred seventy five thousand ($175,000) U.S. dollars. Payment
      of
      one hundred fifteen thousand ($115,000) will be made immediately upon the
      successful completion of a transaction (a “RTO”) whereby Sutor becomes a wholly
      owned subsidiary of a corporation domiciled in the United States of America.,
      The remaining sixty thousand dollars ($60,000) will be paid in three equal
      installments of twenty five thousand ($20,000) at the beginning of each calendar
      quarter commencing ninety (90) days after the execution of this
      agreement.

    

    b. All
      out
      of pocket expenses incurred by Consultant and/or its associates shall be
      reimbursed by the Company. If the RTO is not consummated, Sutor agrees to
      reimburse Heritage for all out of pocket expenses incurred up to the date it
      is
      determined the RTO will not be effected. Travel expenses will be incurred at
      a
      Business Class level of service. Besides travel in the US, it is expected that
      the Spokesperson will visit Company’s China locations(s) two (2) times during
      the term of the Agreement. If total amount of expense incurred goes beyond
      the
      limit of $25,000 in the agreement period, Heritage shall ask Halter for
      permission in advance for further expense, if any.

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    

    c. HFG
      hereby agrees that it shall pay all fees and expenses contemplated by paragraphs
      (a) and (b) of this Section 3. during the stated term of this Agreement. HFG
      shall not be responsible for the payment of fees and expenses payable to
      Consultant resulting from either an extension of the term of this Agreement
      or
      the rendering of services requested by the Company that are beyond the scope
      of
      the Agreement.

    

    4. Representations
      and Warranties.
      Consultant represents and warrants (i) that Consultant has no obligations,
      legal
      or otherwise, inconsistent with the terms of this Agreement or with Consultant’s
      undertaking this relationship with the Company, (ii) that Consultant will not
      use in the performance of its responsibilities under this Agreement any
      confidential information or trade secrets of any other person or entity and
      (iii) that Consultant has not entered into or will enter into any agreement
      (whether oral or written) in conflict with this Agreement.

    

    5. Indemnification.
      Company
      agrees to indemnify and save harmless the Consultant, as well as Consultant’s
      officers, employees, and agents from all suits, actions, losses, damages,
      claims, or liability of any character, type or description, including without
      limiting the generality of the foregoing all expenses of litigation, court
      costs, and attorney’s fees arising out of or occasioned by the acts of Sutor,
      its agents or employees, or occasioned by the acts of Consultant in the
      execution or performance of the services provided by the Consultant, at any
      time
      from the execution date of this Agreement until such time after any pertinent
      limitations period expires after the termination of this Agreement.

    .

    As
      part
      of this indemnification, Sutor agrees to defend and hold harmless Consultant
      from and against any and all liabilities arising from the consulting agreement.
      As such, Consultant shall not be liable to Sutor, or to anyone who may claim
      any
      right due to its relationship with Sutor, for any acts or omissions on the
      part
      of the Consultant or the agents or employees of the Consultant in the
      performance of Consultant’s services under this Agreement. Sutor shall hold
      Consultant free and harmless from any obligations, costs, claims, judgments,
      attorney’s fees, or attachments arising from or growing out of the services
      rendered to the Company.

    

    6. Governing
      Law.
      This
      Agreement shall be governed by the laws of the Peoples Republic of China and
      any
      dispute arising hereunder shall be submitted for binding arbitration to the
      China Foreign Trade Commission Arbitration Committee in Shanghai.

     

    It
      is
      understood that this Agreement will be prepared and executed in both the English
      and Chinese languages, with both versions having legal efficacy. If a dispute
      arises as to the interpretation of a particular provision of this Agreement
      because of differences between the Chinese and English languages, the dispute
      shall be resolved in accordance with the provisions of the preceding paragraph.
      

    

    7. Miscellaneous.
      If any
      action at law or in equity is necessary to enforce or interpret the terms of
      this Agreement, the prevailing party shall be entitled to reasonable attorney’s
      fees, costs. This Agreement shall be binding on and inure to the benefit of
      the
      parties to it and their respective successors and assigns.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

    

    Executed
      at Hilton Head Island, SC, USA on the day and year first above written.

     

    
      
        	
                Sutor
                  Steel Technology, Co., Ltd.

              	 	Heritage
                Management Consultants, Inc.
	 	 	 	 
	By:	/s/ Guoxiang
                Ni 	 	By:
	/s/ James
                H.
                Groh 
	 	
                

                Guoxiang,
                  Ni, CEO

              	 	 	
                

                James
                  H. Groh, President

              
	 	 	 	 	 
	 	
                Dated:
                  November 1, 2006 

              	 	 	
                Dated:
                  November 26, 2006 

              

      

      
        	HFG
                International, Limited	 	 	 
	 	 	 	 
	By: 	/s/ Timothy
                P. Halter 	 	 	 
	 	
                

              	 	 	
              
	Printed
Name: 	
                Timothy
                  P. Halter

              	 	 	
              
	 	 	 	 	 
	 	
                Its:
                  Director

              	 	 	 
	 	 	 	 	 
	 	
                Dated:
                  January 11, 2007

              	 	 	 

      

    

     

    
      
        
        

      

      
        4Exhibit
      10.14

    

      FINANCIAL
        ADVISORY AGREEMENT

       

      THIS
        FINANCIAL ADVISORY AGREEMENT (“Agreement” or “FAA”) is made and entered into on
        this the 3rd of July, 2006, by and among HFG International, Limited, a Hong
        Kong
        corporation (“HFG”), Changshu Huaye Steel Strip Co., Ltd (“CHSS”) and
        Jiangsu Cold-Rolled Technology Co., Ltd (“JCT”
        and collectively with CHSS, “the Company”), with each Company being organized
        under the laws of The People’s Republic of China.

    

     

    WITNESSETH:

     

    WHEREAS,
      the Company desires to engage HFG to provide certain financial advisory and
      consulting services as specifically enumerated below commencing as of the date
      hereof related to the Restructuring, the Going Public Transaction and the
      Post-Transaction Period (each as hereinafter defined), and HFG is willing to
      be
      so engaged; and

     

    WHEREAS,
      HFG will advise the Company with regard to matters related to their efforts
      to
      complete a capital raising transaction generating gross offering proceeds of
      at
      least $25 million USD to the restructured entity based on a valuation of 12
      X
      (target P/E) June 30, 2006 trailing 12 month U.S. GAAP audited net income of
      no
      less than $11 million USD (the “Financing”).

     

    NOW,
      THEREFORE, for and in consideration of the covenants set forth herein and the
      mutual benefits to be gained by the parties hereto, and other good and valuable
      consideration, the receipt and adequacy of which are now and forever
      acknowledged and confessed, the parties hereto hereby agree and intend to be
      legally bound as follows:

     

    1. Retention.
      As of
      the date hereof, the Company hereby retains and HFG hereby agrees to be retained
      as the Company’s exclusive
      financial advisor during the term of this Agreement. The Company agrees that
      in
      the event that the Company reports audited net income of less than $11 million
      USD for the trailing 12 month period ending June 30, 2006 (the “2006 NI”) HFG
      shall have the right to either terminate this Agreement or renegotiate the
      terms
      hereof. The Company also acknowledges that HFG shall have the right to engage
      third parties to assist it in its efforts to satisfy its obligations hereunder.
      HFG will exercise a good faith effort to help the Company secure the completion
      of the Financing and Going Public Transaction within 135 days from the date
      of
      this Agreement. In its capacity as a financial advisor to the Company, HFG
      will:

     

    
      	 	
              A.

            	
              Restructuring
                and Going Public
                Transaction.

            

    

     

    (i) consult
      on the implementation of a restructuring plan (the “Restructuring”) resulting in
      an organizational structure that will allow the Company to complete the Going
      Public Transaction; The plan for implementing the Restructuring is set forth
      in
      Schedule “A —Changshu
      Huaye Steel Strip Going-public Transaction and Capital Raising Proposal”
attached hereto ;

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

     

    (ii) assist
      the Company in evaluating the manner of effecting a going public transaction
      (a
“Going Public Transaction”) with a public shell corporation (“Pubco”), domiciled
      in the United States of America and quoted on the “OTC BB”, which is free from
      any debt (If the Pubco is not free from debt, HFG will be responsible for it
      and
      be obligated to solve this issue), resulting in the Company’s current
      shareholders and those investors participating in the Financing owning, in
      the
      aggregate, 95.5% of Pubco’s issued and outstanding common stock after completion
      of the Going Public Transaction.

     

    (iii) coordinate
      all third parties engaged to facilitate completion of the transactions
      contemplated herein and ensure that such third parties timely perform the tasks
      for which they are engaged;

     

    (iv) ensure
      the stability of HFG team members, with the Company having the right to approve
      any changes to the list of team members set forth on Schedule “B” hereto
      ;and

     

    (v) exercise
      a good faith effort to ensure the Restructuring and the Going Public Transaction
      are completed in accordance with the time line attached hereto as Schedule
“C”.
      HFG agrees that any adjustment to the time line will be explained to the Company
      in writing, with such adjustments also being subject to the Company’s approval.

     

    
      	 	
              B.

            	
              Post
                Transaction Period

            

    

     

    Upon
      consummation of the Financing and the Going Public Transaction, HFG agrees
      to:

     

    (i) coordinate
      and supervise a training program for the purpose of facilitating new
      management’s operation of Pubco. It is HFG’s obligation to introduce third party
      consultants to the Company when needed (all costs and expenses charged by the
      third party consultants have to be approved by the Company in advance and are
      the responsibility of the Company or Pubco once such third parties are
      engaged);

     

    (ii) work
      with
      legal counsel to facilitate the changing of Pubco’s name, and help obtain a new
      CUSIP number and stock symbol for Pubco;

     

    (iii) oversee
      third party development of Pubco’s investor relations efforts, which effort
      shall include (a) establishing a program for communicating with brokerage
      professionals, investment bankers and market makers; and (b) creating a complete
      investor relations strategy to be implemented in English and Chinese. Except
      as
      otherwise provided for herein, the Company agrees that all costs and expenses
      charged by investor relations and press relations firms introduced by HFG and
      engaged by Pubco or the Company will be the sole responsibility of Pubco or
      the
      Company; (The detailed arrangement will be based upon the mutually acceptable
      terms reached by all related parties in a further discussion)

     

    (iv) coordinate
      with the Company’s legal counsel in the preparation and assembly of application
      materials for the listing of Pubco’s common stock on a national exchange or
      quotation medium that may include, but shall not necessarily be limited to,
      the
      American Stock Exchange or the NASDAQ Stock Market; 

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    (v) act
      as
      Pubco’s exclusive representative for the purpose of coordinating future capital
      raising transactions for a period of 24 months following the expiration of
      the
      Authorization Period (as hereinafter defined), with all parties agreeing to
      work
      together to reach mutually acceptable terms for any future financings.

     

    
      	 	
              C.

            	
              Financing. 

            

    

     

    HFG
      will
      assist the Company in managing the Financing
      according to the preceding provisions. The Financing will be structured as
      an
      all or nothing offering up to $25million USD (the “Minimum Offering”) and as a
      best efforts offering up to $35million USD. The Schedule A will show the
      detailed information with related to shares percentage hold by the investor
      and
      Shell’s original shareholders after closing. It is anticipated and HFG will
      exercise a good faith effort to ensure that the Financing will be undertaken
      at
      a valuation of the Company of 12 X (target P/E) June 30, 2006 trailing 12 month
      U.S. GAAP audited net income. The
      Company agrees that if the valuation of the Company is at least 11X June 30,
      2006 trailing 12 month U.S. GAAP audited net income the Company will be
      obligated to consummate both the Financing and the Going Public
      Transaction.
      If the
      Company’s June 30, 2006 trailing 12 month U.S. GAAP audited net income is less
      than $11 million or the financing valuation is less than 11X
      June 30, 2006 trailing 12 month U.S. GAAP audited net income,
      the
      terms of the Financing and Going Public Transaction may be renegotiated by
      the
      Company and HFG.

     

    2. Financing
      Consideration.
      Subject
      to provisions of this Agreement, any entity or individual who facilitates the
      Financing, and is eligible under applicable law, will be paid a cash amount
      equal to six percent (6%) of the gross proceeds delivered upon consummation
      of
      the Financing. If the Financing is accomplished from multiple financing
      channels, then the consideration to be paid to said parties shall be allocated
      according to the proportion of the gross offering proceeds for which they are
      responsible. All Financing consideration shall be paid at the time of closing
      from the proceeds to be held in escrow pending delivery of the securities
      purchased by the investors in the Financing. 

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    3. Financing
      Conditions and Contingencies.
      The
      Company acknowledges that the closing of the Financing addressed in this
      Agreement will be contingent upon the Company’s commitment to ensure that
      immediately after the closing of the Financing and the Going Public Transaction
      Pubco shall file a registration statement with the U.S. Securities and Exchange
      Commission (“SEC”) for the purpose of registering for resale (i) either the
      shares purchased by participants in the Financing or any security for which
      the
      purchased shares are exchanged and (ii) shares of Pubco’s common stock held by
      HFG or any affiliated person or entity. It is understood that offering proceeds
      will not be released from escrow until the registration statement is filed
      with
      the SEC. Furthermore, the Company’s shareholders will agree that in the event
      the Company fails to report net income in its US GAAP audited financial
      statements for the 12 month period ending June 30, 2007 that is at least 65%
      greater than the 2006 NI (the “ Projected 2007 NI”), its current shareholders
      will deliver to the investors in the Financing and to the previous shell company
      shareholders shares of Pubco that they will receive as a result of their
      participation in the Going Public Transaction in accordance with the following
      provisions: 

     

    The
      Company’s shareholders shall place into escrow the identical number of shares of
      Pubco common stock held by the investors in the Financing and HFG immediately
      upon the closing of the Going Public Transaction (the “Make Good Shares”). In
      the event the Company fails to report the Projected 2007 NI for the 12 month
      period ending June 30, 2007, the escrow agent will transfer collectively to
      the
      investors in the Financing and to HFG that number of Make Good Shares based
      from
      the following formula:

     

    ((Projected
      2007 NI-Actual Reported Net Income for the 12 Month Period Ended June 30, 2007)/
      Projected 2007 NI) X Make Good Shares

     

    The
      Company will ensure that the Make Good Shares will be delivered within ten
      business days of the date the audit for fiscal 2007 is completed and will be
      registered under Section 5 of the Securities Act of 1933 for purposes of resale,
      which registration statement shall be filed with the SEC within 30 days of
      the
      delivery of the Make Good Shares. The registration statement shall remain
      effective and the prospectus constituting a part thereof available for delivery
      in connection with the resale of the Make Good Shares for a period of 12 months
      commencing on the delivery date of the Make Good Shares.

     

    HFG
      acknowledges that total percentage of the issued and outstanding shares of
      Pubco’s common stock held by the original stockholders of The Company shall not
      represent less than 51% of all the issued and outstanding shares of Pubco’s
      common stock following the issuance of the Make Good Shares.

     

    4. Exclusivity.
      HFG
      shall have the exclusive right for a period of six months (the “Exclusivity
      Period”) from the date of this Agreement to assist the Company in its efforts to
      affect the Financing. However, the right of exclusivity granted hereunder shall
      terminate in the event HFG advises the Company that it either unwilling or
      unable to facilitate the Financing. In addition, the Company agrees that in
      the
      event that this Agreement is terminated for any reason, other than upon the
      completion of a Financing, it shall not enter into discussions or negotiations
      with or close a financing, regardless of terms, with any party introduced by
      HFG
      as a possible investor or placement agent for the Financing, each of which
      shall
      be listed on Schedule “D” to this Agreement at the time of introduction and
      shall be confirmed in written by the company, for a period of one years
      following the date of termination of this Agreement.

     

    5. Authorization.
      Subject
      to the terms and conditions of this Agreement, the Company hereby appoints
      HFG
      to act on a best efforts basis as its exclusive consultant during the
      Authorization Period (as hereinafter defined). HFG hereby accepts such appoint,
      with it being expressly acknowledged that HFG is acting in the capacity of
      independent contractor and not as agent of either the Company, affiliates of
      the
      Company resulting from the Restructuring, or Pubco.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

     

    In
      addition, except in the event of an act constituting either willful misconduct
      or gross negligence on the part of HFG, the Company agrees that it will not
      hold
      HFG responsible in the event that either the Restructuring, the Financing or
      the
      Going Public Transaction is not consummated, nor shall it hold HFG liable for
      any damages suffered by the Company as a result of the Company’s inability to
      consummate either the Restructuring, the Financing or the Going Public
      Transaction. However, in the event HFG commits an act constituting either
      willful misconduct or gross negligence which makes it impossible to complete
      either the Financing or the Going Public Transaction, even though the Company
      achieved the established performance thresholds set forth herein, HFG shall
      indemnify the Company against all costs expensed in accordance with this
      Agreement, including legal, accounting and other fees and expenses, arising
      from
      the Company’s efforts to complete the Financing and the Going Public
      Transaction, unless any other agreement in writing reached by HFG and the
      Company. HFG shall provide advices with respect of the financing and going
      public to the Company at the same time HFG fulfills the terms of this agreement.
      HFG shall have the right to recommend the legal and accounting professionals
      for
      the transactions contemplated herein.

     

    6. Authorization
      Period.
      Except
      as otherwise provided for herein, HFG’s engagement hereunder shall become
      effective on the date hereof (the “Effective Date”) and will automatically
      terminate (the “Termination Date”) on the first to occur of the following: (a)
      either party exercises their right of termination as provided for in this FAA,
      (b) either party’s breach of its covenants herein or (c) 12 months from the
      Effective Date. This Agreement may be extended beyond the Termination Date
      if
      both parties mutually agree in writing. Except as to certain obligations of
      the
      Company under Section 4.
      hereof,
      this Agreement shall also terminate immediately upon the mutual decision of
      the
      parties not to move forward with the Restructuring, the Financing or the Going
      Public Transaction.

     

    7. Fees
      and Expenses.
      The
      Company agrees that it will spend up to an aggregate of $1.5 million USD (the
      “Capped Expense Amount”) for the purpose of satisfying expenses (the “Capped
      Expenses”) related to the Restructuring, the Financing and the Going Public
      Transaction. The Capped Expense Amount includes all expenses related to: (a)
      legal fees of US securities and PRC legal counsel, and legal fees incurred
      by
      investment bankers who act as placement agents for the Financings, (b) audit
      fees and expenses, (c) US GAAP conversion and drafting of MD&A(“Management
      Discussion & Analysis”) section for registration statement and current
      report to be filed with the SEC, (d) engagement of Heritage Management as
      Pubco’s US spokesperson for a period of 12 months from the date of engagement,
      (e) travel and road show costs related to the Financing, (f) appropriate due
      diligence reviews, (g) $450,000 payable to HFG for the consulting services
      to be
      provided herein, and (h) any other costs and expenses incurred inn connection
      with the completion of the transactions contemplated herein. HFG shall have
      the
      right to introduce all third party service providers to be used to render the
      services referenced in this paragraph to the Company and engage them upon the
      Company’s approval. 

     

    The
      Capped Expenses will be paid by HFG. HFG shall be reimbursed in accordance
      with
      the following payment schedule, the company shall not pay any service fees
      to
      the third parties: 

     

    (a) $
      50,000
      USD to HFG within 10
      days
      following the date of this Agreement;

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

     

    (b) $
      50,000
      USD within 10
      days
      following the day when HFG completes its legal and accounting due diligence,
      and
      HFG presents the feasibility of the Financing and the Going Public Transaction
      to the Company in writing;

     

    (c) $
      50,000
      USD within 10
      days
      following the completion of the Restructuring, i.e., the Company receives the
      Foreign Investment Company Operation License; and 

     

    (d)  $1,350,000
      USD immediately upon the completion of the Financing and the Going Public
      Transaction, with said amount to be paid from the proceeds of the Financing
      to
      be held in escrow, of which $200,000 shall be used to engage a US spokesperson
      for a period of 12 months.  

     

    HFG
      agrees to reimburse the Company for all expenses incurred by the Company in
      connection with completion of the Financing and the Going Public Transaction
      in
      excess of the Capped Expense Amount.

     

    After
      the
      Company makes first payment under subparagraph (a) above, HFG will begin its
      due
      diligence review and timely provide a detailed list of questions and issues
      it
      wishes the Company to address (the “Diligence Questionnaire”). The Company shall
      timely provide responses to the Diligence Questionnaire, which responses shall
      be accurate and complete. After Diligence Questionnaire is completed and follow
      up matters addressed, HFG will deliver to the Company a written feasibility
      report regarding the Financing and the Going Public Transaction. If HFG
      determines in its report that the Company is not qualified to complete the
      Financing, HFG shall have the right to terminate this Agreement and retain
      the
      initial payment. If it is determined that the Company is qualified to move
      forward with the Financing and the Going Public Transaction, then both parties
      will move forward with this Agreement. 

    

    If
      the
      Company makes a misrepresentation or omission in the Diligence Questionnaire
      which leads to the failure of the Financing, the Company will reimburse all
      the
      Capped Expenses paid by HFG . Otherwise, if HFG neglects to ask an important
      question during the due diligence process that leads to the failure of the
      Financing, the Company will not reimburse HFG for expenses paid on the Company’s
      behalf.
      However, if the Company elects not to move forward with the Financing once
      it is
      determined that the minimum valuation referenced herein is obtainable then
      HFG
      shall be entitled to have all Capped Expenses paid on the Company’s behalf as of
      the date the Company elects not to move forward reimbursed by the Company.
      

    

    The
      Company and Pubco shall be solely responsible for all costs and expenses related
      to operating as a public reporting and trading company in the US capital markets
      following the closing of the Going Public Transaction. 

     

    8. Due
      Diligence and Auditabilty.
      HFG
      shall have the right to perform a due diligence investigation of the Company,
      to
      be completed within 30 days of the date of this Agreement, that demonstrates
      to
      HFG’s sole satisfaction that the Company is a suitable candidate for the Going
      Public Transaction, which due diligence investigation shall include consultation
      with the Company’s independent audit firm regarding the auditablity of the
      Company in accordance with US GAAP. HFG shall have the right to terminate this
      Agreement in the event it determines that there exists a material and
      non-curable due diligence matter. The Company shall also have the right to
      perform a due diligence investigation of Pubco.

     

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

     

    9. Indemnification.
      The
      parties hereto shall indemnify each other to the extent provided for in this
      paragraph. Except as a result of an act of gross negligence or willful
      misconduct on the part of a party hereto, no party shall be liable to another
      party, or its officers, directors, employees, shareholders or affiliates, for
      any damages sustained as a result of an act or omission taken or made under
      this
      Agreement. In those cases where gross negligence or willful misconduct of a
      party is alleged and proven, the non-damaged party agrees to defend, indemnify
      and hold the damaged party harmless from and against any and all reasonable
      costs, expenses and liabilities suffered or sustained as a result of the act
      of
      gross negligence or willful misconduct

     

    10. Governing
      Law.
      This
      Agreement shall be governed by the laws of the Peoples Republic of China and
      any
      dispute arising hereunder shall be submitted for binding arbitration to the
      China Foreign Trade Commission Arbitration Committee in Shanghai. The
      arbitration result is the final judgment and has restrictions to all parties.
      The arbitration fees should be the responsibility of the failure
      party.

     

    11. HFG
      Covenants.
      HFG
      covenants and agrees that 

     

    (i)
      it
      will not sell more than 50% of its holdings in Pubco during the 12 month period
      following the closing of the Going Public Transaction. HFG further agrees that
      for a 12 month period following the closing of the Going Public Transaction
      it
      will not sell more than 10% of its holdings in Pubco in a single transaction
      and
      it will not sell more than 20% of its holdings in Pubco in a given month; and
      

     

    (ii)
      that
      it is providing a turn key service related to assisting the Company in its
      efforts to effect the Restructuring, the Financing and the Going Public
      Transaction, and as such, it will exercise a good faith effort and work with
      great diligence to ensure that all phases of the transactions contemplated
      herein are properly and timely managed and that their outcomes are satisfactory
      to the Company. 

     

    It
      is
      understood that this Agreement will be prepared and executed in both the English
      and Chinese languages, with both versions having legal efficacy. If a dispute
      arises as to the interpretation of a particular provision of this Agreement
      because of differences between the Chinese and English languages, the dispute
      shall be resolved in accordance with the Chinese version.

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

     

    IN
      WITNESS WHEREOF, the parties have executed this Agreement as of the day and
      year
      first above written.

    
      	 	 	 
	 	
              HFG:

               

              
                HFG
                  International, Limited

                
                  Address:
                    6th Floor, Alexandra House, 18 

                  Chater
                    Road, Central, Hong Kong

                

              

            
	 
 	 
 	 
	
            	By:	/s/ Timothy P. Halter
	 	
              Its:

            	
              

              Timothy
                P. Halter,

              President

            
	 	
            	
               

               

            
	 	
              By: 
                

            	/s/ John Z. Zhang
	 	 	
              

              John
                Z. Zhang,

            
	 	Its:	
               Managing
                Director

            

    

     

    
      	 	 	 
	 	
              The
                Company:

               

              
                Changshu
                  Huaye Steel Strip Co., Ltd

                
                  

                    Addressæ:
                      No.8,
                      Huayue Road, Dongbang 

                    Industrial
                      Park, Changshu, Jiangsu, P.R.C.

                  

                

              

            
	 
 	 
 	 
 
	
            	By:  	/s/ Guoxiang
              Ni
	 	 	
              

              Guoxiang
                Ni

            
	 	Its:	
              Chief
                Executive Officer 

            

    
      	 	 	 
	 	
              Jiangsu
                Cold-Rolled Technology Co., Ltd

               

              
                Addressæ:No.8,
                  Huayue Road, Dongbang 

                Industrial
                  Park, Changshu, Jiangsu, P.R.C.

              

            
	 
 	 
 	 
 
	
            	By:  	/s/
              Guoxiang Ni
	 	 	
              

              Guoxiang
                Ni

            
	 	Its:	
              Chief
                Executive Officer 

            

    

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    

    Schedule
      A: Changshu Huaye Steel Strip Going-public Transaction and Capital Raising
      Proposal

    Schedule
      B: HFG Core Team Members

    Schedule
      C: Timeline

    Schedule
      D: Potential Investors 

     

    
      
        
        

      

      
        9

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