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Longhai Steel, Inc.: Exhibit 10.11 - Filed by newsfilecorp.com

Exhibit 10.11

INDEPENDENT DIRECTOR AGREEMENT 

THIS INDEPENDENT DIRECTOR AGREEMENT (this
“Agreement”) is made effective as of _______, 2010 by and
between Longhai Steel Inc. (the “Company”), and _____ (“Director”). 

WHEREAS, the Company seeks
to attract and retain as directors, capable and qualified persons to serve on
the Company’s board of directors (the “Board”); and 

WHEREAS, the Company has
requested and received from Director certain information regarding Director’s
qualifications and fitness to serve on the Board and has considered and relied
upon the accuracy of such information in offering Director the opportunity to
serve on the Board; and 

WHEREAS, the Company
believes that Director possesses the necessary qualifications and abilities to
serve as a director of the Company and to perform the functions and meet the
Company’s needs related to its Board. 

NOW, THEREFORE, the parties agree as follows: 

1. Service to the Board. 

(a) Service as a
Director. Director will serve for a period of three years (the
“term as a director of the Company in accordance with the bylaws of the Company
and perform all duties as a director of the Company, including without
limitation (1) attending meetings of the Board, (2) serving on such committees
of the Board (each a “Committee”) to which Director has been
appointed, (3) attending meetings of each Committee of which Director is a
member and (4) performing Director’s duties on behalf of the Company in good
faith and in a manner that is not opposed to the best interests of the
Company.

(b) Service on
Committees. Director will serve on the following committees and
in the capacities stated: 

	                                                                                                                                                                               
     	Member 	 	Chairperson 
	Audit Committee 	----	 	----
	Compensation/Nominating Committee 	----	 	----
	Corporate Governance Committee 	----	 	----

To the extent Director serves as Audit Committee Chairperson,
Director agrees that Director is also serving as the financial expert for
purposes of filings before the Securities and Exchange Commission. 

2. Term. The term of this
Agreement shall commence as of the date of Director’s appointment by the Board
of Directors of the Company and shall continue until the Director’s removal or
resignation. 

3. Compensation and Expenses. 

(a) Director
Compensation. In recognition of the services provided by and to
be provided by Director, the Company agrees to issue to Director, an aggregate
of _______________ restricted shares of the Company’s common stock (such
issuance, the “Compensation”), one-sixth (1/6) of the restricted shares to be
granted on the date that is six (6) months following the closing date of a
secondary offering of shares of the Company’s common stock, and the remaining
restricted shares to be granted on each six
(6) month interval thereafter in five equal installments (each such date a “grant date”). The Board reserves the right to change the Compensation from time to time, to take into consideration the responsibilities associated with different
committees in setting Compensation levels and to grant additional restricted shares periodically, which may vary from the terms described in this section. If Director ceases to serve as a director on the Company’s Board at any time and for any
reason prior to a grant date associated with any restricted shares, all restricted shares described in the restricted share agreement that have not been granted as of such time of cessation of services will not be granted.  All such cancelled or
forfeited restricted shares shall be returned to the Company’s incentive pool. 

(b) Expenses. The Company will reimburse Director for all reasonable, out-of-pocket expenses, approved by the Company in advance, incurred in connection with the performance of
Director’s duties under this Agreement (“Expenses”), upon submission of receipts and a written request for payment. Such statement shall be accompanied by sufficient documentary matter to support the expenditures. The
Company may withhold from any payment any amount of withholding required by law. 

(c) Future Compensation and Benefits. The Board, with the compensation committee, reserves the right to determine the compensation for services provided under this Agreement. The Board may from time
to time authorize additional compensation and benefits for Director, including stock options and restricted stock. 

(d) Insurance and Indemnification. This Agreement is effective only when the directors’ and officers’ insurance policy previously shown to the Director is in place and an Indemnification
Agreement satisfactory to the Director is signed by the Company. When and if the Company anticipates the successful qualification of its common stock for trading on the NASDAQ Stock Exchange or any similar exchange for securities trading, the
Company shall amend its existing directors’ and officers’ insurance policy to increase limits available to independent directors by approximately $5,000,000 or a lesser or greater amount which is determined and approved by the Board to
be appropriate, with such insurance effective on date of such listing or as soon thereafter as possible, provided that such increase is in the best interests of the Company and its shareholders. 

The Company has provided the Director with a summary of the limits and terms of its current Directors’ and Officers’ Liability Insurance (the “D&O Insurance”) and the provisions of
its corporate by-laws and governing documents dealing with indemnification of directors (the “Indemnification Provisions”).  To the fullest extent permitted by applicable law, the Company agrees that it will not voluntarily
change the terms of such D&O Insurance or the Indemnification Provisions to the detriment of the Director at anytime while he is entitled to benefit of such D&O Insurance or Indemnification Provisions. 

4. Confidentiality.  The Company and Director each acknowledge that, in order for the intents and purposes of this Agreement to be accomplished, Director shall necessarily be obtaining access to certain
confidential information concerning the Company and its affairs, including, but not limited to business methods, information systems, financial data and strategic plans which are unique assets of the Company (“Confidential
Information”). Director covenants not to, either directly or indirectly, in any manner, utilize or disclose to any person, firm, corporation, association or other entity any Confidential Information. 

5. Non-Compete.  During the term of this Agreement and for a period of twelve (12) months following Director’s removal or resignation from the Board of Directors of the Company or any of its
subsidiaries or affiliates (the “Restricted Period”), Director shall not, directly or indirectly, (i) in any manner whatsoever engage in any capacity with any business competitive with the Company’s
current lines of business or any business then engaged in by the Company, any of its subsidiaries or any of its affiliates (the “Company's Business”) for Director’s own benefit or for the benefit of any person or entity other
than the Company or any subsidiary or affiliate; or (ii) have any interest as owner, sole proprietor, shareholder, partner, lender, director, officer, manager, employee, consultant, agent or otherwise in any business competitive with the Company's
Business; provided, however, that Director may hold, directly or indirectly, solely as an investment, not more than two percent (2%) of the outstanding securities of any person or entity which are listed on any national securities
exchange or regularly traded in the over-the-counter market notwithstanding the fact that such person or entity is engaged in a business competitive with the Company's Business. In addition, during the Restricted Period, Director shall not develop
any property for use in the Company’s Business on behalf of any person or entity other than the Company, its subsidiaries and affiliates. 

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6. Termination. With or without cause, the Company and Director may each terminate this Agreement at any time upon ten (10) days written notice, and the Company shall be obligated to pay to Director the
compensation and expenses due up to the date of the termination. Nothing contained herein or omitted herefrom shall prevent the shareholder(s) of the Company from removing Director with immediate effect at any time for any reason. 

7. Amendments and Waiver. No supplement, modification or amendment of this Agreement will be binding unless executed in writing by both parties. No waiver of any provision of this Agreement
on a particular occasion will be deemed or will constitute a waiver of that provision on a subsequent occasion or a waiver of any other provision of this Agreement. 

8. Binding Effect. This Agreement will be binding upon and inure to the benefit of and be enforceable by the parties and their respective successors and assigns. 

9. Severability. The provisions of this Agreement are severable, and any provision of this Agreement that is held by a court of competent jurisdiction to be invalid, void, or otherwise
unenforceable in any respect will not affect the validity or enforceability of any other provision of this Agreement. 

10. Governing Law. This Agreement will be governed by and construed and enforced in accordance with the laws of the State of Delaware applicable to contracts made and to be performed in that
state without giving effect to the principles of conflicts of laws. 

 11. Notice. Any and all notices referred to herein shall be sufficient if furnished in writing at the addresses specified on the signature page hereto or, if to the Company, to the Company’s address as specified in filings made
by the Company with the U.S. Securities and Exchange Commission. 

 12. Assignment.  The rights and benefits of the Company under this Agreement shall be transferable, and all the covenants and agreements hereunder shall inure to the benefit of, and be enforceable by or against, its successors and
assigns. The duties and obligations of Director under this Agreement are personal and therefore Director may not assign any right or duty under this Agreement without the prior written consent of the Company. 

 13. Entire Agreement.  Except as provided elsewhere herein, this Agreement sets forth the entire agreement of the parties with respect to its subject matter and supersedes all prior agreements, promises, covenants, arrangements,
communications, representations or warranties, whether oral or written, by any officer, employee or representative of any party to this Agreement with respect to such subject matter. 

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14. Counterparts. This Agreement may be executed in any number of counterparts, all of which taken together shall constitute one instrument. Facsimile execution and delivery of this Agreement is legal,
valid and binding for all purposes. 

[Signature Page Follows]

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IN WITNESS WHEREOF, the parties hereto have caused this Independent Director Agreement to be duly executed and signed as of the day and year first above written. 

	
LONGHAI STEEL INC.
	
	
 
	
 
	
By: ______________________________
	
Name:
	
	
Title:
	
	
 
	
	
DIRECTOR
	
	
 
	
_________________________________
	
Name:
	
	
Address:
	
	
__________________________________________________________________

_________________________________exhibit10-1.htm

    EXECUTION
COPY 

     

    PLAN SUPPORT
AGREEMENT 

     

    This PLAN
SUPPORT AGREEMENT (together with the Term Sheet (as defined below), the
“Agreement”), dated as of July 18, 2010, is
made by and among Jennifer Convertibles, Inc., a Delaware corporation,
(“Jennifer” or the “Company”, which term, for the avoidance of
doubt, includes the debtor in possession following the filing of the Petitions
(as defined below)), and Haining Mengnu Group Co. Ltd (“Mengnu”) (the time and date when this
Agreement has been executed by each of Jennifer and Mengnu being hereinafter
referred to as the “date of this Agreement” or the “date hereof”). 

     

         WHEREAS, the Company and Mengnu have
engaged in negotiations with the objective of reaching an agreement for a
Restructuring (as defined below) of the Company; 

     

         WHEREAS, the Company now desires to
implement a financial restructuring (the “Restructuring”) of the Company and its
subsidiaries (together, the “Jennifer Companies”) consistent with the terms and
conditions set forth in the term sheet ( the “Term Sheet”) attached hereto as Exhibit A;

     

         WHEREAS, in order to implement the
Restructuring, the Company has agreed, on the terms and conditions set forth in
this Agreement, to use its best reasonable efforts to consummate the
Restructuring through a plan of reorganization (“Plan of Reorganization” or
“Reorganization Plan”), the requisite acceptances of which shall be solicited
following commencement of voluntary cases (“Chapter 11 Cases”) by the Jennifer Companies under
chapter 11 of title 11 of the United States Code, 11 U.S.C. §§ 101-1532 (as
amended, the “Bankruptcy Code”) in the United States Bankruptcy
Court for the Southern District of New York (the “Bankruptcy Court”); 

     

         WHEREAS, Mengnu is prepared to
commit, on the terms and subject to the conditions of this Agreement and to the
extent legally permissible, to, if and when solicited in accordance with
applicable bankruptcy law, vote to accept the Plan of Reorganization and support
its confirmation; 

     

         NOW THEREFORE, in consideration of
the premises and the mutual covenants and agreements set forth herein, and for
other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the Company and Mengnu hereby agree as follows:

     

              1. Term Sheet. The principal terms and conditions
of the Restructuring are set forth in the Term Sheet and shall be incorporated
by Jennifer in the Reorganization Plan. 

     

              2. Condition Precedent.
It is a
condition precedent to the effectiveness of this Agreement that voluntary
petitions (“the Petitions”) are filed with the Bankruptcy Court and the Chapter
11 Cases are commenced no later than 9:00 p.m. (NY Time) on July 18, 2012,
unless previously extended by Mengnu in writing (the time and date of filing of
the Petitions being hereinafter called the “Petition Date”). If this condition
is not satisfied, this Agreement shall be void and of no effect.

     

              3. Means for Effectuating the
Restructuring. The Company shall seek to effectuate the Restructuring through the
commencement of the voluntary Chapter 11 Cases and the confirmation and
consummation of the Plan of Reorganization in accordance with this Agreement.

     

              4. Preparation of Restructuring
Documents.

     

    
      	               	
              The Company shall, in
      consultation with Mengnu, prepare all of the documents (collectively, the
      “Chapter 11
      Documents”, which shall include without limitation each of the documents
      referred to in paragraph 4 b)(i) through (iv) below), necessary for the
      Jennifer Companies to commence the Chapter 11 Cases and obtain
      confirmation and consummation of the Reorganization Plan, all of which
      shall be submitted to Mengnu and 

            

    

     

    

    
    

    
      	               	
              its
      counsel in draft form as soon as practicable but in any event not later
      than 5:00 p.m. on the second business day prior to filing with the
      Bankruptcy Court (or such earlier date as shall be specified below or such
      later date as Mengnu shall consent to in writing), for its review and
      comment, shall be satisfactory to Mengnu in form and substance and shall
      not be submitted to or filed with the Bankruptcy Court unless Mengnu shall
      have advised Jennifer (orally or in writing) that it does not object
      thereto. In aid of the foregoing, Jennifer
  shall:

            

    

     

    
      	          	
                        i Prepare and file with the
      Bankruptcy Court no later than 5:00 p.m. on the first business day
      following the Petition Date first day motions, which motions shall include
      a critical vendor motion (“Mengnu Critical Vendor Motion”) in respect of
      Mengnu providing for the grant to Mengnu of a purchase money security
      interest in inventory acquired by the Jennifer Companies from Mengnu after
      the filing of the Petitions and all proceeds thereof, the payment to
      Mengnu of $400,000 per week for application to pre-petition indebtedness
      owed to Mengnu in accordance with the terms and provisions thereof and
      having other terms and conditions as specified in the Term Sheet, which
      are not inconsistent with the terms and conditions in the Term Sheet and
      which is otherwise in form and substance satisfactory to
      Mengnu; 

               

                        ii Prepare and file with the
      Bankruptcy Court statements of financial affairs and required schedules
      under chapter 11 of the Bankruptcy Code for the Jennifer Companies no
      later than twenty (20) days following the Petition Date (complete draft to
      be provided Mengnu and its counsel no later than three days prior to
      filing); and 

               

                        iii
      Prepare and file with the Bankruptcy Court no later than thirty (30) days
      following the Petition Date a disclosure statement (the “Disclosure
      Statement”) relating to a Plan of Reorganization that incorporates the terms
      and conditions of the Term Sheet and is not inconsistent with the Term
      Sheet and is otherwise in form and substance satisfactory to Mengnu and
      complies with Sections 1122, 1123 and 1124 of the Bankruptcy Code,
      including customary exhibits, and which disclosure statement complies with
      section 1125 of the Bankruptcy Code (complete draft including Plan of
      Reorganization and all exhibits to be provided Mengnu and its counsel not
      less than 10 days prior to filing). 

            

    

     

              5. Company Undertakings.
The Company
hereby agrees to use reasonable efforts and do all other things reasonably
necessary to effectuate and consummate the Restructuring and obtain confirmation
of and consummate the Plan of Reorganization as expeditiously as possible. The
Company hereby agrees that none of the Jennifer Companies will take any action
that conflicts with or is inconsistent with this Agreement or that would
interfere with or adversely affect its ability to consummate the Plan of
Reorganization as contemplated hereby. 

     

              6. Agreement to Support Company
Restructuring. For so long as this Agreement remains in effect, and subject to the
satisfaction of each of the conditions precedent to Mengnu’s obligations set
forth in Section 7 below, Mengnu agrees to (i) use reasonable efforts to support
approval of the Plan of Reorganization; (ii) not to take any action that it
knows will interfere in any material respect with the approval of the Plan of
Reorganization by the Bankruptcy Court; and (iii) provide the Company with
information about Mengnu that, based upon written advice of counsel, the Company
reasonably believes is required to be included in the Disclosure Statement to
the extent legally permissible for Mengnu and which would not cause Mengnu to
breach any confidentiality agreement or understanding heretofore entered into in
the ordinary course of business; in each case referred to in any of clauses (i),
(ii) or (iii) above so long as the Company’s Plan of Reorganization and
Disclosure Statement do not conflict with and meet all requirements and
conditions relating thereto as set forth in this Agreement and are not
inconsistent with the Term Sheet. 

     

              7. Conditions to Mengnu’s
Obligations. It
shall be a condition precedent to Mengnu’s obligations to perform or observe any
term, provision or condition of this Agreement to be performed or observed by it
at any time, including without limitation, it obligations in Section 6 hereof,
that none of the following events, occurrences or conditions ( each a “Mengnu
Condition”) shall exist, whatever the reason therefor and whether or not
occurring as a result of action or inaction by any of the Jennifer Companies, by
operation of law, or otherwise: 

     

    2

     

    

    
    

    
      	          	
                        i Any representation or warranty
      made by the Company to Mengnu in this Agreement or any information in any
      document prepared by the Company or any of the other Jennifer Companies
      and provided to Mengnu shall be false or misleading in any material
      respect when made or provided; 

               

                        ii Any of the following
      milestones (“Milestones”) shall not be achieved within the time specified
      below: 

            

    

     

    
      	                         	
                   (aa) Obtain an interim order
      of the Bankruptcy Court granting the Mengnu Critical Vendor Motion in form
      and substance satisfactory to Mengnu with such changes, if any, as are
      satisfactory to Mengnu not later than five business days following the
      Petition Date; 

               

                   (bb) Obtain a final order of
      the Bankruptcy Court granting the Mengnu Critical Vendor Motion, with such
      changes, if any, as are satisfactory to Mengnu not later than the
      thirtieth day immediately following the Petition Date; 

               

                   (cc) Obtain an order of the
      Bankruptcy Court approving the Disclosure Statement, with such changes, if
      any as are satisfactory to Mengnu, not later than seventy five (75) days
      immediately following the Petition Date; and 

               

                   (dd) Obtain an order (the
      “Confirmation Order”) of the Bankruptcy Court confirming a Plan of
      Reorganization in the form attached to the Disclosure Statement approved
      by the Bankruptcy Court, with such changes, if any, as are approved by
      Mengnu, no later than one hundred thirty(130) days following the Petition
      Date 

            

    

     

    
      	          	
                        iii.
      On the effective date (“Effective Date”) of the Plan of Reorganization
      there shall be any appeal of the Confirmation Order other than any such
      appeal which Mengnu determines in its sole discretion does not materially
      interfere with consummation of the Plan of Reorganization and if
      successful would not materially adversely affect the interests of Mengnu
      upon consummation of the Plan of Reorganization or thereafter.
      

               

                        iv.
      The Bankruptcy Court shall have terminated Jennifer’s exclusive period to
      file the a plan of reorganization or such exclusivity period shall have
      lapsed; 

               

                        v.
      Any preference recovery action against Mengnu shall have been successfully
      prosecuted at any time prior to the Effective Date; 

               

                        vi.
      The Company at any time shall fail to make any payment required to be made
      by it in accordance with the Mengnu Critical Vendor Motion or shall
      terminate Mengnu’s status as a critical vendor for any reason other than
      Mengnu’s default in honoring the production and shipping schedule agreed
      to by the parties from time to time; 

               

                        vii
      At any time prior to the Effective Date, the Company or any other of the
      Jennifer Companies shall file any motion or take any other action to
      challenge any proof of claim submitted by Mengnu for an aggregate amount
      of pre-petition indebtedness (before giving effect to any payments
      received by Mengnu in accordance with the critical vendor motion
      applicable to Mengnu) 

            

    

     

    3

     

    

    
    

    
      	          	
              of not
      in excess of $17,000,000 or any objection to any such proof of claim
      submitted by Mengnu is allowed; 

               

                        viii Any of the Jennifer
      Companies shall, after the filing with the Bankruptcy Court of the
      Disclosure Statement, propose any amendment or modification thereto which,
      in Mengnu’s opinion, is material and to which Mengnu objects and such
      amendment or modification is not withdrawn within five days after notice
      thereof from Mengnu to Jennifer; 

               

                        ix
      Any of the Chapter 11 Documents, including, without limitation, the Plan
      of Reorganization, shall contain any term or condition (aa) different from
      the terms and conditions set forth in the Term Sheet, (bb) inconsistent
      with the Term Sheet , (cc) which Mengnu believes, or has reason to
      believe, could adversely affect Mengnu’s interests upon consummation of
      the Plan of Reorganization or thereafter or (dd) which in Mengnu’s opinion
      is otherwise material and to which Mengnu objects by notice to the Company
      and, in the case of the condition specified in this subclause (dd), such
      term or provision is not changed in a manner in form and substance
      satisfactory to Mengnu within five days after receipt by the Company of
      such notice; 

               

                        x
      At any time on or prior to the Effective Date there shall have been issued
      or remain in force any order, decree, or ruling by any court or
      governmental body having jurisdiction restraining or enjoining the
      consummation of or declaring or rendering illegal the Restructuring or any
      of the transactions contemplated by this Agreement;

               

                        xi
      The Company shall propose, consent to, support, acquiesce or participate
      in the formulation of any out-of-court restructuring, any chapter 7 or
      chapter 11 plan of reorganization or liquidation or any other such similar
      reorganization or liquidation (whether foreign or domestic) other than the
      Restructuring as described in the Term Sheet and other than as agreed to
      by Mengnu; 

               

                        xii
      At any time after the date of this Agreement and prior to the Effective
      Date, (i) any event or occurrence or condition shall happen or occur,
      whatever the reason therefor and whether happening or existing by
      operation of law or otherwise, not disclosed in writing to Mengnu by
      Jennifer prior to the date hereof that Mengnu reasonably believes has had,
      has or could reasonably be expected to have a Material Adverse Effect
      (“Material Adverse Effect” means any change, event, occurrence, effect, or
      state of facts that, individually, or aggregated with other such matters,
      is materially adverse to the business, assets (including intangible
      assets), properties, condition (financial or other), or results of
      operations or prospects of the Jennifer Companies taken as a whole, but
      excluding actions, events, occurrences, effects or conditions that result
      by operation of law from the filing of a case under chapter 11 of the
      Bankruptcy Code) or (ii) there shall be or have been, in the reasonable
      opinion of Mengnu, any material adverse change or development involving a
      prospective material adverse change in the business, properties, assets
      (tangible and intangible), condition (financial or other), results of
      operations or prospects of the Jennifer Companies taken as a whole from
      that which exists on the date of this Agreement other than any such
      arising solely by operation of law as a result of the filing of the
      Petitions; 

               

                        xiii
      If any of the pleadings filed by the debtor with the Bankruptcy Court or
      the final forms of the documents prepared in connection with or related to
      the Restructuring (including, without limitation, any
  

            

    

     

    4

     

    

    
    

    
      	          	
              stockholders' agreement, any certificate of incorporation, any
      bylaws, any document concerning the corporate governance of any of the
      Jennifer Companies upon the consummation of the Reorganization Plan or any
      document concerning the rights of Company shareholders or debtholders upon
      the consummation of the Reorganization Plan) necessary for the
      implementation of the Restructuring shall not be in form and substance
      satisfactory to Mengnu;

               

                        xiv A trustee or examiner with
      enlarged powers shall have been appointed under section 1104 or 105 of the
      Bankruptcy Code for service in the Chapter 11 Cases; 

               

                        xv Any of the Chapter 11 Cases
      shall be converted to a case under chapter 7 of the Bankruptcy Code:
      

               

                        xvi The Confirmation Order
      shall not contain any condition to Confirmation proposed by Mengnu to
      Jennifer that is not inconsistent with the Term Sheet;
      

               

                        xvii Any of the Jennifer
      Companies shall, at any time following the date of this Agreement and
      prior to the Effective Date, directly or indirectly, (aa) engage in, agree
      to or consummate any transaction (other than the Restructuring) other than
      in the ordinary course of business and on an arms' length basis, or (bb)
      incur any liability other than in the ordinary course of business and on
      an arms' length basis, and, if between unaffiliated parties, also on
      market terms; 

               

                        xviii At any time after the
      date of this Agreement and prior to the Effective Date, any of the
      Jennifer Companies shall fail to (aa) maintain its corporate existence in
      good standing under the laws of Delaware or other jurisdiction in which it
      is organized, (bb) maintain its qualification to do business in each
      jurisdiction where it is presently qualified to do business except for
      jurisdictions in which Jennifer has ceased or plans to cease operations as
      set forth in the description of Jennifer’s proposed store closing program
      ( the “Store Closing Program”) set forth in the initial Store Closing
      Program Report (as defined in clause xxiii below) or such other
      jurisdictions where Jennifer later proposes to cease operations and to
      which Mengnu does not object after reasonable notice and receipt of an
      accompanying analysis from Jennifer of such proposal or (cc) qualify to do
      business in any other jurisdictions where the nature of the business done
      by it makes such qualification necessary; 

               

                        xix At any time after the date
      of this Agreement and prior to the Effective Date, any of the Jennifer
      Companies shall, directly or indirectly: (aa) issue, sell, pledge, dispose
      of, or encumber any additional shares of, or any options, warrants,
      conversion privileges or rights of any kind to acquire any shares of, any
      of its equity interests; (bb) amend or propose to amend its respective
      articles of incorporation, by-laws or comparable organizational documents;
      (cc) split, combine, or reclassify any outstanding shares of its capital
      stock or other equity interests, or declare, set aside, or pay any
      dividend or other distribution payable in cash, stock, property, or
      otherwise with respect to any of its equity interests; (dd) redeem,
      purchase, or acquire or offer to acquire any of its equity interests; (ee)
      acquire, transfer, or sell (by merger, exchange, consolidation,
      acquisition of stock or assets, or otherwise) any interest in or any
      indebtedness of any corporation, partnership, joint venture, or other
      business organization or division, or, other than in the ordinary course
      of 

            

    

     

    5

     

    

    
    

    
      	          	
              business
      or as contemplated pursuant to the Store Closing Program and to which
      Mengnu does not object after reasonable notice from Jennifer , any assets;
      (ff) merge with or into or consolidate with any corporation or other
      person other than, in the case of Jennifer Companies other than Jennifer,
      a merger or consolidation with or into another Jennifer Company or in the
      case of Jennifer a merger with another Jennifer Company in which Jennifer
      is the surviving corporation; or (gg) engage in or agree to engage in or
      consummate or agree to consummate any transaction or agreement other than
      in the ordinary course of business and consistent with past practice or as
      is necessary to effect the Store Closing Program or the Lease
      Renegotiation Program ( as defined in clause xxiii below) or to consummate
      the Plan of Reorganization and to which, in all cases, Mengnu does not
      object after reasonable notice from Jennifer; 

               

                        xx At any time after the date
      of this Agreement and prior to the Effective Date, any of the Jennifer
      Companies shall create, incur, assume or suffer to exist any lien, charge,
      security interest or other encumbrance (“Lien”) on any of its properties
      or assets now owned or hereafter acquired other than (i) warehousemen’s,
      carriers, workmen’s and similar liens arising in the ordinary course of
      business and not delinquent, (ii) taxes, assessment and other governmental
      charges arising in the ordinary course of business and not delinquent,
      (iii) pledges or deposits arising under workmen’s compensation or similar
      laws, (iv) statutory liens and other similar liens arising in the ordinary
      course of business that do not secure the payment of borrowed money and
      (v) Liens in favor of Mengnu; 

               

                        xxi
      At any time after the date of this Agreement and prior to the Effective
      Date, the Jennifer Companies taken together shall have created, incurred,
      assumed or suffered to exist indebtedness for borrowed money that
      aggregates in excess of $25,000; 

               

                        xxii
      Jennifer shall have failed to prepare and submit to Mengnu’s financial
      advisor no later than 5:00 pm on July 16, 2010, a monthly operating
      budget, for the period August – December 2010 (the “Budget”) in form and
      substance satisfactory to Mengnu and that is consistent with the weekly
      cash flow and monthly fiscal year 2011 projections provided to Mengnu’s
      financial advisor on or about June 23, 2010 as updated on a basis
      acceptable to Mengnu; 

               

                        xxiii
      Jennifer shall have failed to prepare and submit to Mengnu and its
      financial advisor, (aa) monthly within twenty-seven (27) days following
      the end of each of Jennifer’s fiscal monthly periods, commencing with the
      first fiscal monthly period ending following the date of this Agreement a
      financial statement report for the monthly fiscal period just ended and
      for the cumulative periods to date commencing with (x) the start of fiscal
      year 2010 and (y) with the July 2010 fiscal month, reflecting accurately
      the items and amounts recorded in the Company’s books and records and in
      form and substance satisfactory to Mengnu and including EBITDA and
      comparisons to the Budget and to the comparable periods of the prior
      fiscal year ; (bb) on the first business day of every second week
      beginning with the first week following the date of this agreement a cash
      flow forecast in form and substance satisfactory to Mengnu and including
      the actual closing cash balance for the last business day of each of the
      two weeks immediately preceding the forecast period for the thirteen week
      period beginning with the week in which the forecast is required to be
      delivered (each a “Cash Flow Forecast”); (cc) weekly on the first business
      day of each week commencing with the first week

            

    

     

    6

     

    

    
    

    
      	          	
              following the date of this Agreement a report of the Company’s
      consolidated cash balance as of the close of business on the last business
      day of the immediately preceding week; (dd) not later than 5:00 p.m. on
      July 21, 2010, and monthly thereafter within five (5) days following the
      end of each of Jennifer’s fiscal monthly periods, commencing with the
      first fiscal monthly period ending following the date of this Agreement a
      report (the “Store Closing Program Report”) showing all stores and
      distribution centers closed or proposed to be closed by any of the
      Jennifer Companies, the status of going out of business sales or other
      comparable closing activity at such stores including projected receipts
      and disbursements, actual receipts and disbursements,, and such other
      information with respect thereto as Mengnu shall have reasonably
      requested, all in reasonable detail and otherwise in form and substance
      satisfactory to Mengnu; and (ee) not later than 5:00 p.m. on July 21,
      2010, and monthly thereafter within five (5) days following the end of
      each of Jennifer’s fiscal monthly periods, commencing with the first
      fiscal monthly period ending following the date of this Agreement, a
      report (the “Lease Renegotiation Program Report”) showing all stores and
      distribution centers and office locations proposed to be maintained by the
      Jennifer Companies upon exit from bankruptcy or under consideration for
      closing but for which a final determination has yet to be made and the
      status of lease renegotiations with landlords with such stores and
      distribution centers, including target back and forward rent reductions,
      and actual back and forward rent reductions (the “Lease Renegotiation
      Program”), and such other information with respect thereto as Mengnu shall
      have reasonably requested, all in reasonable detail and otherwise in form
      and substance satisfactory to Mengnu; 

               

                        xxiv At any time after the
      date of this Agreement and prior to the Effective Date, (aa) the Company’s
      consolidated EBITDA for the cumulative period commencing fiscal August
      2010 is less than 80% of the comparable amount in the Company’s Budget,
      (bb) on a consolidated basis the Company shall have incurred expenses or
      expenditures in the cumulative period commencing with fiscal August 2010
      that, in respect of any line item other than Cost of Goods Sold, volume
      related home delivery expenses, commission based employee compensation, or
      other expenses or expenditures directly resulting from sales, exceeds ten
      percent (10%) of the amount budgeted therefor in the Budget or that in the
      aggregate exceeds five percent (5%) of the total amount of expenses and
      expenditures budgeted in such Budget, (cc) any of the Jennifer Companies
      shall make any payment on account of prepetition indebtedness (other than
      to Mengnu or to Ashley Homestores, Ltd.) or which is inconsistent with the
      most recent Budget provided to Mengnu without the prior written consent of
      Mengnu, or (dd) the Company’s consolidated freely available cash balance
      shall be less than $2.0 million; 

               

                        xxv
      The pro forma balance sheet included in the Disclosure Statement approved
      by the Bankruptcy Court, or any amendment or supplement thereto, shall
      show the consolidated freely available cash balance of the Jennifer
      Companies as of the date of consummation of the Plan of Reorganization to
      be less than $2.0 million; 

               

                        xxvi
      Jennifer shall fail to provide Mengnu with notice from time to time of the
      proposed terms of any agreement with any liquidator for the disposition of
      inventory of any of Jennifer’s stores or distribution centers being closed
      or the proposed terms of any agreement with any lease renegotiation
      advisor for the renegotiation of leases, in each case sufficiently in
      advance of Jennifer’s entering into any such agreement to enable Mengnu’s
      advisors to 

            

    

     

    7

     

    

    
    

    
      	          	
              comment
      thereon and discuss the same with Jennifer’s management and advisors, or
      any such agreement shall be entered into to which Mengnu shall have timely
      and reasonably objected;

               

                        xxvii (aa) the Disclosure
      Statement, or any amendment or supplement thereto, or the Plan of
      Reorganization approved pursuant to the Confirmation Order provides for
      the payment upon consummation of the Plan of Reorganization or at any time
      thereafter of (x) administrative expenses allowed in accordance with
      Section 503(a)(2) of the Bankruptcy Code (other than expenses arising from
      the purchase of inventory or customer deposits) such that, on a pro forma
      basis after giving effect thereto as if all such expenses were paid on the
      Effective Date, the Company’s consolidated free cash balance on the next
      day following the Effective Date would be less than $2.0 million; or (y)
      any allowed claims entitled to priority under Section 507 of the
      Bankruptcy Code other than claims entitled to priority under Section
      507(a)(4) or Section 507(a)(7) of the Bankruptcy Code or (bb) or at any
      time prior to the issuance of the Confirmation Order or thereafter prior
      to the Effective Date, after consultation with Jennifer, Mengnu reasonably
      believes that on the Effective Date there will actually be any such
      administrative expenses or that there will be any such
claims;

               

                        xxviii
      Ten days prior to the date set for the hearing on confirmation of the Plan
      of Reorganization (“Confirmation Hearing Date”) pursuant to Section 1128
      of the Bankruptcy Code Rami Abada and Jennifer shall have failed to agree
      to modify his employment agreement with Jennifer on terms and conditions
      and otherwise in form and substance satisfactory to Mengnu and entered
      into an amendment to such employment agreement as so modified with
      Jennifer; or the Bankruptcy Court shall not have approved such
      modifications or Jennifer shall not have assumed such employment agreement
      as so modified at or prior to the time of issuance of the Confirmation
      Order; 

               

                        xxix
      Ten days prior to the Confirmation Hearing Date Harley Greenfield and
      Jennifer shall have failed to agree to modify his employment agreement
      with Jennifer on terms and conditions and otherwise in form and substance
      satisfactory to Mengnu and entered into an amendment to such employment
      agreement as so modified with Jennifer; or the Bankruptcy Court shall not
      have approved such modifications or Jennifer shall not have assumed such
      employment agreement as so modified at or prior to the time of issuance of
      the Confirmation Order; 

               

                        xxx
      At any time after the date of this Agreement and prior to the Effective
      Date, Jennifer change the rate of compensation or terms of compensation
      (including, without limitation, terms providing for fringe benefits or
      termination benefits) of, or entered into any new contractual arrangements
      (other than new contractual arrangements with Rami Abada or Harley
      Greenfield in accordance with the immediately preceding clause xxviii or
      clause xxix of this Section 7, as applicable) with, or provide or agree to
      provide any new or additional employee benefits to, the employees (“Key
      Employees”) shown on the organization chart on page 8 of the Management
      Presentation dated June 2010 presented to Mengnu’s advisors by TM Capital
      without the prior written consent of Mengnu; or proposed any new
      employment contracts (other than in respect of Rami Abada or Harley
      Greenfield as aforesaid) or any new incentive compensation or other
      employee benefit plans, contracts or arrangements for any of the Key
      Employees either as part of the Plan of Reorganization or otherwise
      without the prior written consent of Mengnu;

            

    

     

    8

     

    

    
    

    
      	          	
                        xxxi Ten days prior to the
      date of the hearing on the confirmation of the Plan of Reorganization, the
      termination date of Jennifer’s credit card processing agreement with
      Merrick Bank/Renaissance shall not have been extended by Merrick
      Bank/Renaissance to a date no earlier than thirteen months immediately
      following the date specified in the Disclosure Statement, or any amendment
      or supplement thereto, as the date proposed for confirmation of the Plan
      of Reorganization or Jennifer and Merrick Bank/Renaissance shall have
      failed to make such other changes thereto as regards the right to reserve
      and to withhold monies reserved and as to other matters as Mengnu shall
      reasonably request unless prior to that time Jennifer shall have obtained
      a binding agreement commitment from a new credit card processor in form
      and substance satisfactory to Mengnu to process credit card sales drafts
      with a stated expiry date no earlier than thirteen months immediately
      following such proposed date for confirmation of the Plan; 

               

                        xxxii
      At any time after the date of this Agreement and prior to the Effective
      Date, any of the Jennifer Companies shall assume or reject any store lease
      or a material contract or close any store or modify or amend the terms of
      or waive compliance with the terms of any store lease or material contract
      or enter into any new store lease or material contract unless Mengnu has
      been given reasonable notice in writing of such proposed action and has
      not reasonably objected thereto prior to the time such action is taken;
      

               

                        xxxiii
      At any time after the date of this Agreement and prior to the Effective
      Date, Jennifer shall fail to timely file any report or other information
      required to be filed by it under the Securities Exchange Act of 1934 , as
      amended (“Exchange Act”) or any such report or other information so filed
      shall contain an untrue statement of material fact or omit to state a
      material fact necessary to be stated therein to make the statements made,
      in light of the circumstances under which they were made, not misleading
      or otherwise not be in compliance in any material respect with the
      applicable requirements of the Exchange Act or the rules and regulations
      of the Securities and Exchange Commission (“SEC”) under the Exchange Act;
      

               

                        xxxiv
      At any time after the date of this Agreement and prior to the Effective
      Date, any of the Jennifer Companies shall fail to keep proper books of
      account in compliance with the applicable rules and regulations under the
      Exchange Act or fail to make full and correct entries of all its financial
      transactions and assets and liabilities; 

               

                        xxxv
      At any time after the date of this Agreement and prior to the Effective
      Date, any of the Jennifer Companies shall fail to be in compliance in all
      material respects with all laws, rules and regulations and orders of any
      court, arbitrator or other tribunal having jurisdiction applicable to it
      or any of its properties; 

               

                        xxxvi
      At any time after the date of this Agreement and prior to the Effective
      Date, (aa) any of the Jennifer Companies receives notice of or obtains any
      knowledge of any governmental or third party notices, complaints,
      investigations, hearings, orders, decrees or judgments (or communications
      indicating that any of the foregoing may be contemplated or threatened)
      concerning any actions, events , occurrences or conditions which could
      reasonably be anticipated to (x) have a Material Adverse Effect or (y)
      prevent or delay the timely consummation of the Restructuring, or (bb)
      Jennifer shall fail as promptly as reasonably practicable, and in any
      event within two (2) business days after receiving such notice or
      obtaining such knowledge to 

            

    

     

    9

     

    

    
    

    
      	          	
              notify
      Mengnu in writing and provide a statement of the facts with respect
      thereto to Mengnu;

               

                        xxxvii At any time after the
      date of this Agreement and prior to the Effective Date, any of the
      Jennifer Companies shall, at any time during normal business hours, fails
      to (x) permit Mengnu and its representatives (including without limitation
      its financial and legal advisors, auditors, appraisers and any other
      consultants engaged by Mengnu) to visit its corporate offices and any of
      its store locations or other properties to examine and make copies of and
      extracts from the books, records, accounts and files of any of the
      Jennifer Companies and discuss the same with the officers and employees of
      any of the Jennifer Companies; or (y) provide to Mengnu and its
      representatives any information reasonably requested by Mengnu in writing,
      including, without limitation, any information requested in writing by
      Mengnu prior to the date of this Agreement and not theretofore
      provided;

               

                        xxxviii
      Jennifer fails to observe or perform any obligations or condition to be
      performed or observed by it in accordance with any order of the Bankruptcy
      Court that has become final or which has not been stayed on appeal;
      

               

                        xxxix
      At any time Mengnu believes, or has reason to believe, that the milestone
      specified in Section 7 ii (dd) cannot, or could not reasonably be expected
      to, be achieved within the time period specified and, after advising
      Jennifer to such effect and providing Jennifer with not less than five (5)
      days’ opportunity to consult with and discuss the same with Mengnu, Mengnu
      so notifies Jennifer; or 

               

                        xl
      Any subsidiary of
      Jennifer not included in the Petitions as a debtor filing a voluntary case
      under chapter 11 of the Bankruptcy Code shall not have been substantively
      consolidated with Jennifer and procedurally consolidated in the Chapter 11
      Cases prior to or pursuant to the issuance of the Confirmation Order
      unless Mengnu shall expressly agree that such subsidiary need not be
      substantively and procedurally so consolidated."
  

            

    

     

         If any Mengnu Condition shall exist
at any time prior to the Effective Date, Mengnu may in its discretion do any one
or more of the following: (i) suspend performance of any obligation or
observance of any condition to be performed or observed by it hereunder at any
time; (ii) by notice in writing to Jennifer declared this Agreement to be
terminated, whereupon neither Mengnu nor Jennifer shall have any further
obligation hereunder and this Agreement shall from and after the giving of such
notice be and become void and of no further force or effect; or (iii) if Mengnu
has voted for the Plan of Reorganization but it has not been consummated,
rescind its vote on the Plan of Reorganization (which vote shall thereupon be
null and void and have no further force or effect). Mengnu may exercise such
rights singly or cumulatively and the single or partial exercise of any such
right shall not prevent Mengnu from exercising any one or more of such rights at
any later time. Such rights shall be in addition to any other rights or remedies
Mengnu may have at law, in equity or otherwise. 

     

              8. Representations and Warranties;
Hearing on Relief from Stay. The Company represents and warrants
to and agrees with Mengnu that (i) Jennifer and each of the other Jennifer
Companies is duly organized, validly existing, and is in good standing under the
laws of the jurisdiction of its formation, (ii) Jennifer’s Form 10-K for its
fiscal year ended August 29, 2009, as amended, its Form 10-Q for its fiscal
quarter ended February 28, 2009, its Form 8-K dated February 19, 2010 and its
Schedule 14A in respect of its annual meeting of stockholder held February 9,
2010, in each case filed with the SEC, complied in all material respects with
the applicable requirements of the Exchange Act and the rules and regulations of
the SEC thereunder and none of such documents, when so filed, contained an
untrue statement of material fact or omitted to state any material fact

     

    10

     

    

    
    

     

    required to be
stated therein or necessary to make the statements made, in light of the
circumstances under which they were made, not misleading; (iii) its execution,
delivery, and performance of this Agreement are within the power and authority
of Jennifer and have been duly authorized by Jennifer and no other approval or
authorization is required, (iv) this Agreement has been duly executed and
delivered by it and constitutes its legal, valid, and binding obligation,
enforceable in accordance with the terms hereof, subject to bankruptcy,
insolvency, fraudulent conveyance, and similar laws affecting the rights or
remedies of creditors generally, and (v) none of the execution and delivery of
this Agreement or compliance with the terms and provisions hereof by Jennifer
will violate, conflict with, or result in a breach of, its certificate of
incorporation or bylaws or other constitutive document, any applicable law or
regulation, any order, writ, injunction, or decree of any court or governmental
authority or agency, or any agreement or instrument to which it is a party or by
which it is bound or to which it is subject.

     

         Mengnu represents and warrants that
(i) it is validly existing as a corporation in good standing under the laws of
the People’s Republic of China and has all the requisite corporate power and
authority to enter into this Agreement and to perform its obligations hereunder
and (ii) assuming this Agreement has been duly executed by Jennifer and
constitutes the valid and legally binding obligation of Jennifer, this Agreement
constitutes the valid and legally binding obligation of Mengnu.

     

         Jennifer on behalf of itself and
each of the other Jennifer Companies hereby consents to any application by
Mengnu for a hearing on any motion to obtain relief from the stay under Section
362 of the Bankruptcy Code upon no more than five days’ notice.

     

              9. Governing Law; Jurisdiction.
This Agreement
shall be governed by and construed in accordance with the internal laws of the
state of New York, without regard to any conflicts of law provisions which would
require the application of the law of any other jurisdiction. By its execution
and delivery of this agreement, each of the parties hereby irrevocably and
unconditionally agrees for itself that any legal action, suit, or proceeding
against it with respect to any matter under or arising out of or in connection
with this Agreement or for recognition or enforcement of any judgment rendered
in any such action, suit, or proceeding, shall be brought in the United States
District Court for the Southern District of New York, and, by execution and
delivery of this Agreement, each of the parties hereby irrevocably accepts and
submits itself to the exclusive jurisdiction of such court, in any action, suit
or proceeding to enforce any of the terms or provisions of this Agreement,
unconditionally, with respect to any such action, suit, or proceeding and agrees
that service of process in connection therewith shall be effective if made by
first class mail, postage prepaid and, if mailed to Mengnu, with the highest
priority and most expeditious delivery available for delivery overseas, and
shall not contest the form of manner of such service. Notwithstanding the
foregoing consent to New York jurisdiction, upon the commencement of the Chapter
11 Cases, the parties agree that the Bankruptcy Court shall have exclusive
jurisdiction of all matters arising out of or in connection with Mengnu’s and
Jennifer’s obligations under this Agreement and that the parties shall not seek
to enforce this Agreement in any other court so long as the Bankruptcy Court
retains jurisdiction of the Chapter 11 Cases. 

     

              10. Specific Performance.
It is understood
and agreed by the parties to this Agreement that money damages would not be a
sufficient remedy for any breach of this Agreement by any party, and each
non-breaching party shall be entitled to seek specific performance and
injunctive or other equitable relief as a remedy of any such breach, including,
without limitation, an order of the Bankruptcy Court requiring any party to
comply promptly with any of its obligations hereunder. 

     

              11. Reservation of Rights.
This Agreement
is part of a proposed settlement of disputes between the parties hereto. Except
as expressly provided in this Agreement, nothing herein is intended to, or does,
in any manner waive, limit, impair or restrict the ability of the Company or
Mengnu to protect and preserve its rights, remedies and interests, or its full
participation in any bankruptcy case filed by the Company. If the transactions
contemplated herein or in the Plan of Reorganization are not consummated, or if
this Agreement is terminated, the parties hereto fully reserve any and all of
their rights. Pursuant to Rule 408 of the Federal Rules of Evidence and any
applicable state rules of evidence, this Agreement shall not be admitted into
evidence in any proceeding other than a proceeding to enforce its terms.

     

              12. Headings. The headings of the Sections and
Subsections of this Agreement are inserted for convenience only and shall not
affect the interpretation hereof. 

     

    11

     

    

    
    

              13. Successors and Assigns.
This Agreement
is intended to bind and inure to the benefit of the parties and their respective
successors, assigns, heirs, executors, administrators and
representatives.

     

              14. Notices. Notices given under this agreement
shall be given by, if to the Company, by first class mail, postage prepaid,
return receipt requested, or, if to Mengnu, by Federal Express priority
international delivery, or if to either party by e-mail through the internet, as
follows: 

     

              If to
the Company: 

     

    
      	                    	
              Jennifer
      Convertibles, Inc. 
417 Crossways Park Drive
Woodbury, NY 11797
Attn: Harley
      Greenfield
          Rami
      Abada
e-mail: hjgharley@aol.com AND mrm79@aol.com 

               

                   with a copy to 

               

              Olshan
      Grundman Frome Rosenzweig & Wolosky LLP
Park Avenue Tower
      

              65 East
      55th
      Street
New York, New York 10022-1106
Attn: Michael Fox,
      Esq.
          Jordanna
      Nadritch, Esq.
e-mail mfox@olshanlaw.com AND
jnaditch@jnadritch@olshanlaw.com 

               

              If to
      Mengnu: 

               

              Mengnu
      Group
101 Longxling Road 
Economic Development
      Zone
Haining Zhejiang, 31440
Attn: Morris Zou
e-mail:
      morriszou@mengnu.com 

               

                   with a copy to 

               

              Lawrence
      A. Darby, III
410 Park Avenue
Suite 1530
New York, New York
      10022
e-mail: ladarby@gmail.com 

               

                   -and- 

               

              James
      Jiang
King & Wood
444 Madison Avenue
42d Floor
New York, New
      York 10022
e-mail: jiangyiwei@kingandwood.com
  

            

    

     

    12

     

    

    
    

    
      	                    	
                   -and- 

               

              Neiger
      LLP
317
      Madison Avenue, 21st Floor
New
      York, NY 10017
Attn: Edward E. Neiger, Esq.
e-mail:
      eneiger@neigerllp.com 

            

    

     

              15. Counterparts. This Agreement may be executed in
one or more counterparts, each of which shall be deemed an original and all of
which shall constitute one and the same Agreement. This Agreement may be
executed and delivered by hand, facsimile, or by electronic mail in portable
document format. 

     

              16. Amendments and Waivers.
This Agreement
may not be modified, amended, or supplemented except in writing signed by the
party against which enforcement of such modification, amendment or waiver is
sought. 

     

              17. No Third Party Beneficiaries.
Unless expressly
stated herein, this Agreement shall be solely for the benefit of the parties
hereto and no other person or entity is intended as a beneficiary hereof.

     

              18.. No Solicitation. This Agreement is not and shall not
be deemed to be a solicitation for votes in favor of the Reorganization Plan in
the Chapter 11 Cases in contravention of section 1125 of the Bankruptcy Code.
Mengnu's vote with respect to the Plan of Reorganization will not be solicited
until Mengnu has received the Plan of Reorganization and Disclosure Statement,
in each case as approved by the Bankruptcy Court. Each party hereto acknowledges
that it has been represented by counsel in connection with this Agreement and
the transactions contemplated hereby. 

     

              19. Severability. Whenever possible, each provision
of this Agreement shall be interpreted in such manner as to be effective and
valid under applicable law, but if any provision of this Agreement shall be
prohibited by or invalid under applicable law, such provision shall be
ineffective to the extent of such prohibition or invalidity, without
invalidating the remainder of such provision or the remaining provisions of this
Agreement.

     

    13

     

    

    
    

              IN WITNESS WHEREOF, each of the parties hereto has
caused this Agreement to be executed and delivered by its duly authorized
officer as of the date first above written. 

     

    
      	
            	
              JENNIFER CONVERTIBLES, INC.
      

            
	
            	
            	
            	 
	
            	
            	
            	 
	
            	By:  	
              /s/
      Harley J. Greenfield 

            
	
            	
            	Name:   	
              Harley
      J. Greenfield 

            
	
            	
            	Title: 	
              Chairman/CEO 

            
	
            	
            	
            	 
	
            	
            	
            	 
	
            	
              HAINING MENGNU GROUP CO.
      LTD
      

            
	
            	
            	
            	 
	
            	
            	
            	 
	
            	By:	
              /s/
      YaoXiang Yue 

            
	
            	
            	Name:	
              YaoXiang
      Yue 

            
	
            	
            	Title: 	
              Chairman
      of the Board 

            

    

     

    14

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