Document:

Exhibit 10.28

         

         

        
          
            	 
      	 	 	 	 
      	 	 	 	 	 	 	 	
                    FX
      rate =

                  	 	 	
                     

                  	 	 	 	 	 	 	 
	
                    QUALYTEXTIL
      SA - reconciliation of Brazilian GAAP to US GAAP

                  	 	 	 	1.6872	 	 	 	 	 	 	 	 	 	 
	
                    Balance
      sheet as of April 30, 2008

                  	 	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
      	 	
                    Brazilian
      GAAP

                  	 	
                     

                  	 	
                    Reclass-

                  	 	 	
                    As

                  	 	 	
                    Translated

                  	 	 	
                     

                  	 	 	
                    Adjustments

                  	 	 	
                    US
      GAAP

                  	 
	 
      	 	
                    per
      Audit

                  	 	
                    Notes

                  	 	
                    ifications

                  	 	 	
                    reclassified

                  	 	 	
                    to
      USD

                  	 	 	
                    Notes

                  	 	 	
                    in
      USD

                  	 	 	
                    in
      USD

                  	 
	 
      	 	
                    report
      in BRL

                  	 	
                     

                  	 	 	 	 	
                    in
      BRL

                  	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
      	 	 	 	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
      	 	 	 	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
      	 	 	 	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    ASSETS

                  	 	
                    2008

                  	 	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
      	 	 	 	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    Current
      assets

                  	 	 	 	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    Cash
      and cash equivalents

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

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

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

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

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

                  	 	 	130,013	 	
                    (f)

                  	 	 	(130,013	)	 	 	-	 	 	 	-	 	 	 	 	 	 	-	 	 	 	-	 
	
                    Other
      receivables

                  	 	 	232,612	 	
                    (f)

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

                  	 	 	 	 	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    Taxes
      recoverable

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

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

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

                  	 	 	 	 	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    Intangible
      assets - trademarks

                  	 	 	-	 	
                    (f)

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

                  	 	 	2,189,117	 	
                    (f)

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

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

                  	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
      	 	 	 	 	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    Current
      liabilities

                  	 	 	 	 	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    Suppliers

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

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

                  	 	 	1,040,087	 	
                    (g)

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

                  	 	 	4,177,976	 	
                    (g)

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

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

                  	 	 	 	42,090	 	 	 	747,746	 
	
                    Salaries
      and social charges

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

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

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

                  	 	 	 	 	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    Other
      debts

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

                  	 	 	 	 	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                    Paid
      in Capital

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

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

                  	 	 	 	(47,944	)	 	 	374,596	 
	
                    Accumulated
      losses

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

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

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

          

        

      

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      Exhibit
10.28

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

      Balance
sheet as of April 30, 2008

      

      
        
          
            	
                     (a)

                  	
                    Inventory
      reserve

                  	 	 
      	
                    (29,295)

                  
	 	 	 	 	 
	 
      	
                    Inventory
      in transit (a-1)

                  	 	
                     (a-1)

                  	
                    1,172,885

                  
	 	 	 	 	 
	 
      	
                    Total
      adjustment to inventory

                  	 	
                    (a)

                  	
                    1,143,590

                  
	 	 	 	 	 
	
                    (b)

                  	
                    Tax
      accrual based on US GAAP income

                  	 	
                    (b)

                  	
                    42,090

                  
	 	 	 	 	 
	
                    (c)

                  	
                    Legal
      fees not accrued under Brazilian GAAP

                  	 	 
      	
                    53,343

                  
	 	 	 	 	 
	 
      	
                    Misc.
      labor accrual

                  	 	 
      	
                    9,888

                  
	 
      	
                    Installment
      plan taxes not accrued - outsourcing sales contractor

                  	 	 
      	
                    271,353

                  
	 
      	
                    Installment
      plan taxes not accrued - outsourcing labor contractor

                  	 	 
      	
                    43,923

                  
	 	 	 	 	 
	 
      	
                    Sales
      representative commission not accrued

                  	 
      	 
      	 
      	
                    15,457

                  
	 	 	 	 	 	 
	 
      	
                    Total
      adjustment to other debts

                  	 
      	 
      	
                    (c)

                  	
                    393,964

                  
	 	 	 	 	 	 
	
                    (d)

                  	
                    Tax
      accrual based on US GAAP income

                  	 
      	 
      	 
      	
                    (42,090)

                  
	 	 	 	 	 	 
	 
      	
                    Various
      accruals per  (c ) above

                  	 
      	 
      	 
      	
                    (393,964)

                  
	 	 	 	 	 	 
	 
      	
                    Capital
      reserve reversal recognized as income

                  	 
      	 
      	 
      	
                    47,944

                  
	 	 	 	 	 	 
	 
      	
                    Inventory
      reserve

                  	 
      	 
      	 
      	
                    (29,295)

                  
	 	 	 	 	 	 
	 
      	
                       Net
      adjustment to accumulated losses

                  	 
      	 
      	
                    (d)

                  	
                    (417,405)

                  
	 	 	 	 	 	 
	
                    (e)

                  	
                    Capital
      reserve reversal recognized as income

                  	 
      	 
      	
                    (e)

                  	
                    (47,944)

                  
	 	 	 	 	 	 
	
                    (f)

                  	
                    To
      reclassify as intangible assets for trademarks and
    tradenames

                  	 
      	 
      	 
      	 
      
	 	 	 	 	 	 
	
                    (g)

                  	
                    To
      combine debt onto one line itemExhibit 10.29

    
      
        	 
      	 	 	 	 
      	 	 	 	 	 	 	 	
                FX
      rate =

              	 	 
      	 	 	 	 	 	 
	
                QUALYTEXTIL
      SA - reconciliation of Brazilian GAAP to US GAAP

              	 	 	 	 	 	 	 	 	1.94720	 	
                (g)

              	 	 	 	 	 	 
	
                Statement
      of Profit and Loss for the year ended December 31, 2007

              	 	 	 	 	 	 	 	 	 
      	 	 	 	 	 	 
	 
      	 	
                Brazilian
      GAAP 

              	
                 

              	 	
                Reclass-

              	 	 	
                As

              	 	 	
                Translated

              	 	 
      	 	
                Adjustments

              	 	 	
                US
      GAAP

              	 
	 
      	 	
                per
      Audit

              	 	
                Notes

              	 	
                ifications

              	 	 	
                reclassified

              	 	 	
                to
      USD

              	 	
                Notes

              	 	
                in
      USD

              	 	 	
                in
      USD

              	 
	 
      	 	
                report
      in BRL

              	 	 
      	 	 	 	 	
                in
      BRL

              	 	 	 	 	 	 
      	 	 	 	 	 	 
	 
      	 	 	 	 
      	 	 	 	 	 	 	 	 	 	 	 
      	 	 	 	 	 	 
	
                Gross
      Income

              	 	 	 	 
      	 	 	 	 	 	 	 	 	 	 	 
      	 	 	 	 	 	 
	 
      	 	 	 	 
      	 	 	 	 	 	 	 	 	 	 	 
      	 	 	 	 	 	 
	
                Gross
      sales

              	 	 	22,104,656	 	 
      	 	 	 	 	 	22,104,656	 	 	 	 	 	 
      	 	 	 	 	 	 
	
                Cancellation
      and taxes on sales

              	 	 	(5,517,669	)	 
      	 	 	 	 	 	(5,517,669	)	 	 	 	 	 
      	 	 	 	 	 	 
	
                Net
      sales

              	 	 	16,586,987	 	 
      	 	 	0	 	 	 	16,586,987	 	 	 	8,518,379	 	 
      	 	 	0	 	 	 	8,518,379	 
	 
      	 	 	 	 	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 
      	 	 	 	 	 	 	 	 
	
                Cost
      of sales

              	 	 	8,750,612	 	 
      	 	 	 	 	 	 	8,750,612	 	 	 	4,493,946	 	
                 (f)

              	 	 	(169,642	)	 	 	4,324,304	 
	 
      	 	 	 	 	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 
      	 	 	 	 	 	 	 	 
	
                Gross
      profit

              	 	 	7,836,375	 	 
      	 	 	0	 	 	 	7,836,375	 	 	 	4,024,433	 	 
      	 	 	169,642	 	 	 	4,194,075	 
	 
      	 	 	 	 	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 
      	 	 	 	 	 	 	 	 
	
                Operating
      expenses (income):

              	 	 	 	 	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 
      	 	 	 	 	 	 	 	 
	
                   General
      and administrative expenses

              	 	 	2,193,850	 	
                (a)

              	 	 	27,344	 	 	 	2,221,194	 	 	 	1,140,712	 	
                 (e)

              	 	 	215,174	 	 	 	1,355,886	 
	
                Selling
      expenses

              	 	 	2,785,569	 	 
      	 	 	 	 	 	 	2,785,569	 	 	 	1,430,551	 	 
      	 	 	 	 	 	 	1,430,551	 
	
                Net
      financial

              	 	 	667,297	 	
                (b)

              	 	 	(1,320,714	)	 	 	(653,417	)	 	 	(335,567	)	
                 (c
      )

              	 	 	335,567	 	 	 	0	 
	
                Depreciation

              	 	 	117,405	 	 
      	 	 	 	 	 	 	117,405	 	 	 	60,294	 	 
      	 	 	 	 	 	 	60,294	 
	
                 
      Other (income) expense

              	 	 	27,344	 	
                (a)

              	 	 	(27,344	)	 	 	0	 	 	 	 	 	 
      	 	 	 	 	 	 	0	 
	 
      	 	 	 	 	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 
      	 	 	 	 	 	 	 	 
	
                Operating
      result

              	 	 	2,044,910	 	 
      	 	 	1,320,714	 	 	 	3,365,624	 	 	 	1,728,443	 	 
      	 	 	(381,099	)	 	 	1,347,344	 
	 
      	 	 	 	 	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 
      	 	 	 	 	 	 	 	 
	
                Interest
      expense

              	 	 	 	 	
                (b)

              	 	 	(1,325,238	)	 	 	(1,325,238	)	 	 	(680,586	)	 
      	 	 	 	 	 	 	(680,586	)
	
                Interest
      income

              	 	 	 	 	
                (b)

              	 	 	4,524	 	 	 	4,524	 	 	 	2,323	 	 
      	 	 	 	 	 	 	2,323	 
	
                Non
      operating other income / expense

              	 	 	27,564	 	 
      	 	 	 	 	 	 	27,564	 	 	 	14,155	 	 
      	 	 	 	 	 	 	14,155	 
	 
      	 	 	 	 	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 
      	 	 	 	 	 	 	 	 
	
                Profit
      (loss) for the year before income tax and social
    contribution

              	 	 	2,072,474	 	 
      	 	 	0	 	 	 	2,072,474	 	 	 	1,064,335	 	 
      	 	 	(381,099	)	 	 	683,236	 
	 
      	 	 	 	 	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 
      	 	 	 	 	 	 	 	 
	
                Provision
      for income tax and social contribution

              	 	 	470,417	 	 
      	 	 	 	 	 	 	470,417	 	 	 	241,586	 	
                 (d)

              	 	 	(137,393	)	 	 	104,193	 
	 
      	 	 	 	 	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 
      	 	 	 	 	 	 	 	 
	
                Profit
      (loss) for the year

              	 	 	1,602,057	 	 
      	 	 	0	 	 	 	1,602,057	 	 	$	822,749	 	 
      	 	$	(243,706	)	 	$	579,043	 

      

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      Exhibit
10.29

      

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

      Year
ended December 31, 2007

      
        
          	
                  (a)
      Reclassify provison for bad debt allowance to administrative
      expense

                	 
      	 
      	 
      	 
      
	
                  (b)
      Reclassify interest expense and interest income out of "net financial"
      Under Brazilian GAAP, the category "net financial" includes interest
      expense and interest income and government incentives on VAT
      taxes.

                	 
      	 
      	 
      
	
                  (c)
      Not used

                	 
      	 
      	 
      	 
      
	
                  (d)
      Government income tax incentives classified as capital contribution for
      Brazilian GAAP

                	 
      	 
      	
                  (176,037)

                
	
                  Adjust
      tax accrual to 15.25% of final US GAAP pretax income

                	 
      	 
      	 
      	
                  38,644

                
	
                    net
      tax adjustment

                	 
      	 
      	
                  (d)

                	
                  (137,393)

                
	
                  (e)
      Net adjustment to administrative expenses

                	 
      	 
      	 
      	 
      
	
                  Legal
      fees not accrued under Brazilian GAAP

                	 
      	 
      	 
      	
                  58,933

                
	
                  Management
      compensation not accrued under brazilian GAAP

                	 
      	 
      	 
      	
                  107,266

                
	
                  Misc.
      labor accrual

                	 
      	 
      	 
      	
                  5,646

                
	
                  Installment
      plan taxes not accrued - outsourcing sales contractor

                	 
      	 
      	 
      	
                  4,623

                
	
                  Installment
      plan taxes not accrued - outsourcing labor contractor

                	 
      	 
      	 
      	
                  15,776

                
	
                  Outsourcing
      labor contractor invoices recorded one month in arrears - accrue December
      2007

                	 
      	
                  22,930

                
	
                  (e)
      Net adjustment to administrative expenses

                	 
      	 
      	(e)	
                  215,174

                
	
                  (f)
      Net adjustment to cost of goods sold

                	 
      	 
      	 
      	 
      
	
                  inventory
      reserve not recorded under Brazilian GAAP - slow moving raw
      material

                	 
      	 
      	
                  73,367

                
	
                  inventory
      reserve not recorded under Brazilian GAAP - reserve for rework returned
      finished goods

                	 
      	
                  29,295

                
	
                  reclassify
      a government VAT tax incentive (ICMS) as a reduction of cost of goods
      sold

                	 
      	 
      	
                  (335,567)

                
	
                  Outsourcing
      labor contractor invoices recorded one month in arrears - accrue December
      2007

                	 
      	
                  48,106

                
	
                  Installment
      plan taxes not accrued - outsourcing labor contractor

                	 
      	 
      	 
      	
                  15,157

                
	
                  (f)
      Net translation of the adjustment to cost of goods sold from BRL into
      USD

                	 
      	 
      	
                  (f)

                	
                  (169,642)

                
	
                  (g)
      The 2007 statement of profit and loss has been derived from the internally
      generated monthly financial statements. These financial statements have
      been translated using the rate applicable to each month. The exchange rate
      of $1.94720 represents a weighted average of the monthly rates
      used.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00171-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00171-of-00352.parquet"}]]