履约保函

履约保函 Bank of Communications Qinhuangdao Branch No.174 Wenhua Road,Haigang District,Qinhuangdao,P.R.C L/G No.G-501-897658 Date: March 25, 2009 TO:DRAGON TOY CO., LTD. 1180 CHURCH ROAD NEWYORK, PA 1956 U.S.A. Dear Sirs, We hereby guarantee to pay you up to an aggregate amount of USD16560(Say U.S.DOLLARS Sixteen Thousand five Hundred and sixty only)for account of Dragon Toy Co.,Ltd, being 10% of Contract Amount as per Contract No. 09QYH035 dated March 18, 2009 for the supply of 4800 sets Telecontrol Racing Car . TERMS AND CONDITIONS: Payment under this Guarantee is available against your statement certifying that the accountee has failed to comply with the contract terms and the following documents: (i) if the accountee has failed to ship the goods of the contract, they are: - your bank’s statement certifying that it has issued L/C in favor of Qinhuangdao Yaohua Imp.& Exp.Co.ltd as per Contract No. 09QYH035 and that Qinhuangdao Yaohua Imp.& Exp.Co.ltd didn’t present the documents to the nominated bank, and - the copy of the above-mentioned L/C. (ii) if the quality and/or quantity of goods the accountee shipped are not the same as whose of the contract, it is the certificate of inspection issued by the SGS. Payment shall not be effected when such failure is caused by force majeure. This Guarantee expires on March 25, 2010 All claims hereunder must be submitted to us not later than the above mentioned expiry date, after which this Guarantee automatically becomes null and void. Yours faithfully Bank of Communications Qinhuangdao Branch . KAORU DOKA ………………………………………… A Authorized Signature Please note: This Guarantee must be returned to us for cancellation as soon as it expires.