Document:

Technology Cooperation Agreement (the
“Agreement”)

 

Party A: Xidelong (China) Co., Ltd.

 

Party B: China Institute of Sports Science
of the General Administration of Sport of China

 

In accordance with the relevant regulations
of the Contract Law and the General Principles of the Civil Law of the People’s Republic of China, and through friendly negotiations,
Party A and Party B (hereinafter referred to as the “Parties”) hereto have agreed as follows on the development of
scientific research and technology cooperation and services:

 

		1.	General Cooperation Mode

 

The Parties will establish strategic
partnership aiming at developing science and technology cooperation and services on the basis of scientific research in order to
enhance the health standards of the Chinese people and raise the quality of national physical fitness.

 

		a.	During the cooperation period, Party A shall have the right to use the words “Strategic Partner
of China Institute of Sports Science of the General Administration of Sport of China” in its business promotions, product
packaging and other promotional activities; whereas at the same time, Party A shall abide by the relevant laws and regulations
of the People’s Republic of China in using these words.

 

		b.	During the cooperation period, Party B shall organize and implement the relevant scientific research
projects and technology researches and services for Party A by utilizing the scientific and technology methods and related conditions
obtained from home and abroad.

 

		c.	The Parties will jointly form a coordination team on technology research to ensure a successful
cooperation between the Parties. Upon commencement of the technology cooperation, a research and development unit shall be set
up under the name of Party B at the premise of Party A.

 

		d.	Based on the marketing needs of Party A, Party B shall assist Party A in conducting activities
such as research and development, science and technological consultation, popularization of science, advertisement, strategic planning,
international and domestic academic exchange, community service and etc.

 

    	 

    	 

    

 

		e.	Party B shall cooperate with Party A to fulfill the related tasks of a public listed company in
the sports industry.

 

		f.	The cooperation period between the Parties shall be a period of five (5) years beginning from October
20, 2011 to October 20, 2016. Upon expiry of this cooperation period, Party A shall have the preemptive right to renew the contract
under the same circumstances.

 

		2.	Contents of Technological Cooperation

 

		a.	Party B shall provide research and development, and technological support on sports physiology
for Party A to increase the technological contents, improve the quality of materials, adjust crafting process, and enhance marketing
strategy of sport products of Party A.

 

		b.	Party B shall assist Party A in the establishment of Sports Science Research Centre and recruitment
of relevant local and overseas experts, together with the planning and design of the Research Centre, and provide support in guidance
and trainings to staff in the Research Centre.

 

		c.	In addition to the above agreed terms, all the research and development results of Party B and
the research projects assigned to Party B by Party A are within the scope of technological services of Party B.

 

		d.	For the research projects conducted by Party B for Party A, Party B shall first develop project
plans and must obtain written consent from Party A prior to their implementation.

 

		3.	Cooperation in Brand Marketing

 

		a.	Party B agrees to engage in technology promotional activities during the contract period for promoting
Party A’s brand, products and research centre.

 

    	 

    	 

    

 

		b.	Party B shall, where appropriate, carry out sales promotions for Xidelong products when there are
opportunities comes with either local or overseas academic activities, promotion of science and technological research results,
as well as popularization of science activities.

 

		c.	Party B agrees that it will assist Party A in preparing research and development, and marketing
plans, as well as brand and product promotional activities for Party A.

 

		d.	The brand marketing activities of Party A shall be closely linked with the national “Fitness
for All” activities.

 

		4.	Cooperation on works related to Party A’s company listed on NASDAQ

		a.	Party B shall assist Party A in fulfilling the technological requirement of NASDAQ, as well as
developing multi-cooperation program and providing services for the positive development of the Company.

		b.	Party B shall assist Party A in developing marketing plan and technological solutions, and bring
the concepts of “sports, technology and industry” into practice.

		c.	Party B shall assist Party A in the administrative work of technological development.

 

		5.	Fees and Payment Method

 

		a.	Party A shall pay a “strategic partner” authorization fee to Party B in the amount
of RMB 500,000 per year of cooperation in two installments. The first installment of RMB 250,000 shall be paid within fifteen (15)
days upon execution of this Agreement and the second installment shall be paid in six months after Party B gives the notification
of the payment date. The payment method in each of the four subsequent years is the same as the first year.

 

		b.	Party A shall provide Party B with funds required for implementing the research and development,
and technological cooperation projects organized by Party B for Party A, while Party B shall use such funds in accordance with
the Measures on the Management and Use of Government Funds on Science and Technology.

 

		c.	All costs and expenses incurred by Party B in organizing or participating in the promotional activities
in relation to the promotional activities of Party A’s products shall be borne by Party A.

 

    	 

    	 

    

 

		6.	Rights and Obligations of the Parties

 

		a.	Rights and Obligations of Party A

 

		I.	Party A shall have the right to use the words “Strategic Partner of China Institute of Sports
Science of the General Administration of Sport of China” on its products, such as sport shoes, sport apparels, sport accessories,
as well as business promotional materials.

 

		II.	Party A shall pay all fees and costs to Party B in
full subject to the terms and conditions agreed hereunder.

 

		III.	Party A shall guarantee the quality of Xidelong products and be responsible for all legal and financial
liabilities arising from quality issues of its products.

 

		IV.	Party A shall assist Party B to perform all the relevant science and technological researches,
as well as testing and promotional activities.

 

		V.	Party A shall have the preemptive right in using the relevant science and technological research
and development results, which Party B has self-owned intellectual property rights on, and in cooperating with Party B on certain
projects under the same circumstances.

 

		VI.	All data generated from technological testing, as well as documentations such as analysis reports
together with the research and development results from the cooperation between the Parties, shall be filed with Party B when using
for business promotion purposes. If Party B raises objections, the Parties shall negotiate separately and such activities shall
be conducted only upon mutual agreement.

 

		b.	Rights and Obligations of Party B

 

		I.	Party B shall guarantee that Party A has the exclusive right to be the “strategic partnership”
with Party B for such product categories including sport shoes, sport apparels and sport accessories.

 

    	 

    	 

    

 

		II.	Party B shall set up a research and development unit and Sports Science Research Centre at Party
A’s premise upon the confirmation of the first cooperation project.

 

		III.	Subject to a clear expression of no intention for cooperation by Party A, Party B shall have the
right to cooperate with third parties on its research projects in the field of technological development.

 

		IV.	Party B shall be entitled to charge Party A the fees as agreed by the Parties hereunder within
the said period of time.

 

		V.	Party B shall engage in promotional activities in relation to the marketing of Party A’s
products.

 

		VI.	Party B shall select and engage both local and overseas experts to participate in the research
and testing activities.

 

		7.	Liabilities for Breach of Contract

 

		a.	If Party A fails to pay the fees within the period of time as agreed hereunder and thereafter fails
to pay again within a reasonable period of time after receiving a written notice from Party B, Party B shall have the right to
request Party A to pay for the damages caused by the payment default according to the relevant regulations of the Supreme People’s
Court on Delayed Payment.

 

		b.	Both parties shall keep the contents of cooperation in strict confidence and, in case of any disclosure
by either party has resulted in economic losses to the other party, the injured party shall be entitled to demand for indemnity
from the breaching party to recover its economic losses.

 

		c.	Party A shall not use the name of Party B discretionarily to engage in any civil and business activities
beyond its rights as provided hereunder.

 

		d.	In case of any loss incurred as a result of any breach of this Agreement by either party, the breaching
party shall be liable for breaching the Agreement.

 

    	 

    	 

    

 

		8.	Dispute Resolution

 

Any dispute between the Parties
arising from this Agreement or from breaching this Agreement by either party will first be settled through negotiations between
the Parties. If the Parties fail to reach an agreement through negotiations, either party shall be entitled to file a suit against
the other with a competent People’s Court by virtue of this Agreement.

 

		9.	Miscellaneous

 

		a.	The research and development results generated from cooperation between the Parties shall be owned
by the Parties.

 

		b.	Party B shall actively assist Party A in providing the documents to apply the government funding
on science and technology innovations in accordance with the relevant government policies.

 

		c.	Upon execution of this Agreement, Party B promises to assist Party A in holding the conference
and signing ceremony for the technological cooperation of “Strategic Partner of China Institute of Sports Science of the
General Administration of Sport of China” according to the time and venue selected by Party A.

 

		d.	During the cooperation period, Party A shall be liable for any dispute arisen from the quality
of the Xidelong products between Party A and consumers, any economical dispute arisen from its business operation, or any credit
and debt arisen from these disputes.

 

		e.	Party A acknowledges any existing agreements or contracts between Party B and the third parties
prior to the execution of this Agreement.

 

		f.	This Agreement is effective on the date of signing by both Parties.

 

		g.	This Agreement is executed in four copies of which each party shall hold two copies. All copies
should have the same legal effect.

 

    	 

    	 

    

 

Party A: Xidelong (China) Co., Ltd.

Address: Quanzhu City, Fujian Province

Signature of Authorized Representative:  /s/ Lin
Shuipan

 

Date: October, 20, 20011

 

Party B: China Institute of Sports Science of the General Administration
of Sport of China

Address: No. 11, Tuyuguan Road, Chongwen District, Beijing

Signature of Authorized Representative: /s/ Zhang Liang

 

Date: October, 20, 2011Contract for the Investment Project Regarding
Setting up a Sportswear Manufacturing Base in Ruichang Industrial Park

(Contract No.: N2011 05)

 

This contract is entered into by and between:

 

Promoter:     The People's Government of
Ruichang City(hereinafter referred to as Party A)

Investor:       Xidelong (China) Company Limited
(hereinafter referred to as Party B)

 

Chapter 1 General Provision

 

1.      Pursuant
to the Contract Law of the People’s Republic of China, “Regarding the issuance and implementation of ‘Notice
on the Construction Land Use Control Indicators for Industrial Projects (For Implementation)’” by the Ministry of Land
and Resources, and “Certain Opinions (Trial) on Enhancing the Management and Promoting the Intensive Use of Industrial Land”
by the People’s Government of Jiujiang City, together with other laws and regulations, the Parties entered into this contract
in respect of Party B’s investment project in Ruichang City based on the principles of equality, willingness and mutual benefit.

 

Chapter 2 An Overview of the Investment
Project

 

2.      Party
A agrees that Party B shall invest in a project to set up a sportswear manufacturing base (including office buildings, factories,
warehouses, and staff quarters, etc.) in Ruichang City, with a total investment of approximately RMB 1.2 billion, of which approximately
RMB 1.0 billion in total is attributable to the fixed assets (including land, factories and machinery and equipment), while the
registered capital is RMB 10 million.

 

3.      Party
B’s contents of this construction project and its production scales are as follows: twenty (20) sportswear production lines
shall be set up in two phases. For phase one, factories with floor area of 300,000 m2 shall be constructed in one-time.
Upon the completion of phase one, 140,000 m2 shall be added in phase two. (The construction work for both phases shall
be completed for production within twenty (20) months). It is expected that upon the production facilities becomes fully operated,
9.5 million pieces (sets) of apparel and 9.5 million pairs of footwear shall be produced per annum with an annual production value
of RMB 1.5 billion which generates tax revenue of more than RMB 100 million per year.

 

    	 

    	 

    

 

Chapter 3 Transfer and Handover of the
Land

 

4.      The
proposed project will be located in the western part of Ruichang Industrial Park on land designated for industrial use with a site
area of 600 acres and the land use right, in accordance with the relevant laws, is acquired through public bidding or auction.
The minimum cost of the land is RMB 280,000 per acre and the compensation for acquiring agricultural land is RMB 50,000 per acre.
The four boundaries and geographic coordinates of the subject land parcel and exact area thereof is based on the “Land Use
Planning Permit” of the said project issued by the Planning Department.

 

5.      After
obtaining the land use right, Party B shall enter into a “State-owned Land Use Right Grant Contract” with Party A’s
State-owned Land Administration and Management Department separately and make a one-time payment of the land premium according
to such contract. Party B shall provide relevant information such as feasibility report, land use application, and construction
plan of the project to Party A within thirty (30) calendar days after entering into this contract. Party A shall issue a “Building
Permit” within seven (7) calendar days after receiving the land premium and relevant certificates and documents.

 

6.      Party A shall
hand over the land to Party B after completion of work on ‘Three supplies and one leveling’: supply of electricity,
water and road and leveled ground. After completion of the project, Party B shall apply for and Party A shall be responsible for
the arrangement of relevant documents including the ‘State-owned Land Use Rights Certificate’ on behalf of Party B.
When applying for State-owned Land Use Rights Certificate, Party B shall pay such taxes and fees as required by the Laws of People’s
Republic of China (including deed tax, land registration fee and other handling charges).

 

7.      Party B warrants
that it would neither change the usage of land nor transfer the land use right to another party without prior notice to Party A.
If it is necessary to transfer the land use right or change the usage of land under special circumstance, Party B shall obtain
approval from Party A and follow relevant procedures in accordance with laws, otherwise Party A is eligible to withdraw such land
use right.

 

    	 

    	 

    

 

Chapter 4 Instructions on Construction
Land Use Control

 

8.      For
Party B’s project, plot ratio shall not be less than 1.2, building density shall not be less than 40%, green rate shall
not be less than 20%, and non-production area, including administrative office and recreational facilities shall not cover more
than 7% of the total area for industrial use (for specific figures, please refer to the construction planning documents issued
by the Planning and Construction Department). Party B shall apply for approval to fulfill the policy requirements regulated by
government departments related to areas such as industry and commerce, planning, state-owned land supervision, work safety, and
environmental protection, etc.

 

9.      Party
B’s fixed assets (land, factories, and equipment, etc.) investment in the project shall not be less than RMB 1.5 million
per acre. If Party B’s fixed assets investment cannot reach such level upon the agreed date of completion and production
commencement of each phase, Party A can withdraw the portion of idle land which falls short of investment capital. If such portion
of land cannot be withdrawn, a penalty for idle land shall be levied to the company according to relevant regulations until the
investments reach RMB 1.5 million per acre.

 

Chapter 5 Construction Pace and Requirement

 

10.     Party
B’s fixed assets investment for the project shall be made in accordance with the “Project Investment Proposal”.
Construction shall commence within ten (10) calendar days after the handover of the land from Party A and has to be completed within
twenty (20) months. If the construction fails to be completed at the agreed time, which results in any land, factories, and equipment
in the project lying idle, Party A is eligible to withdraw the land use right of the project.

 

11.     The
construction work cannot be commenced until Party B submits the design plan and construction proposal of the entire site (including
factories, office buildings, staff quarters, walls, water supply and drainage, and electricity supply, etc.) to Party A and gets
the approval of the construction authority of Party A and the Management Committee of the Industrial Park.

 

    	 

    	 

    

 

12.     Party
B shall complete the relevant procedures according to the regulations and assure the project design and construction entities are
chartered and qualified. The entire construction shall only be commenced after the on-site positioning and alignment measured by
the Planning Department and the Management Committee of the Industrial Park, and shall be ready for any random on-site inspections
on work safety by the Construction Department and on design and planning by the Management Committee of the Industrial Park.

 

13.     It
shall be deemed as default by Party B if it fails to commence the construction one month after the agreed commencement date stated
in the contract without applying for any extension or fails to commence the construction within a six–month extension period.
Party A is eligible to withdraw Party B’s land use right (without refund of taxes and fees incurred except the land premium)
unless such failure is caused by force majeure or any acts of the government or governmental departments.

 

Chapter 6 Preferential Policies and Services

 

14.     Party
B enjoys the corporate preferential policies governed by the Laws and Regulations of the People’s Republic of China.

 

15.     Party
B enjoys the following preferential policies for the investment project:

 

(1)   Corporates
who are exporters or export goods through forwarder are entitled to enjoy an “exemption, credit, refund” policy enacted
for value-added tax of export goods.

(2)   Starting
from the production commencement year, all corporate income tax for local district paid by Party B in the first two (2) years and
50% of corporate income tax for local district paid by Party B in the third (3) to fifth (5) year shall be awarded by Party A as
corporate tax contribution incentive and refunded to the corporate.

(3)   Industrial
project under construction is exempted from local administrative fee and subject to preferential service charge of not more than
40%.

 

    	 

    	 

    

 

(4)   Exempted
from the cost for increase in water and electricity consumption capacities.

 

16.     The
City leader, representing the City, is in charge of the project; whereas the Office of Municipal People’s Congress and Municipal
Financial Bureau are the departments in charge among which Municipal Financial Bureau takes the lead role. Party B’s project
design, submission of construction plan for evaluation and approval, and the procedure of completion and related applications are
handled fully by or with the assistance of Party A (where Party B bears all expenses). Party A is also responsible for the coordination
work for Party B’s construction project to resolve any difficulties which may arise in the construction process.

 

Chapter 7 Supplementary
Provision

 

17.     The
construction project, production, and operating activities of Party B’s shall be conducted in accordance with laws and regulations
of the Peoples’ Republic of China and environmental protection work shall be carried out in accordance with laws and is under
the supervision of the production safety department of Party A.

18.     Party
B shall, within thirty (30) calendar days after signing the contract, establish and register a company with an independent legal
person status in Ruichang City to run the project and pay tax to both national and local taxation departments of Ruichang City,
otherwise this contract shall be terminated automatically in which case Party B shall be liable for its own investment loss.

 

19.     Matters
that are not mentioned herein shall be mutually agreed by Party A and Party B through friendly negotiation, of which the conclusion
of the agreement shall be formally written as a supplementary agreement to this contract. The supplementary agreement has the same
legal effect with this contract.

 

    	 

    	 

    

 

20.     After
entering into this contract, Party B shall pay an one-off compensation for agricultural land expropriation of RMB 50,000 per acre,
i.e. RMB 30 million in total, as well as a payment of 10% on the total cost of land use rights certificate of RMB 280,000 per acre,
i.e. RMB 16.8 million, totaling RMB 46.8 million as performance bond to Party A within ten (10) calendar days. Such payment of
10% on the total cost of land use rights certificate could be used to offset the land premium.

 

21.     This
contract is made into eight (8) copies of which Party A and Party B each holds four (4) copies. All copies are equally authentic
and shall have the same legal effect.

 

	Party A (Seal)	Party B (Seal)
	 	 
	Legal Representative (appointed agent)	Legal Representative (appointed agent)
	 	 
	Signature	Signature
	 	 
	Date: 20 December 2011	Date

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