**Exhibit      10.1**

**MANUFACTURING      AGREEMENT**

**Sumeeko      Industries Co., **
**Encompass      Holdings, **
**Aqua      Xtremes, **
**Xtreme      Engines, **

**RECITALS**

|  | **A.** | Purchaser                is engaged in the business of designing, developing, marketing and                selling                proprietary private watercraft ("PWC") such as the Xboardt'".                as                well as other proprietary products utilizing a rotary engine (the                "Products"). |
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|  | **B.** | Purchaser                desires to outsource production of the Products to a manufacturer                that can                produce the Products at a quality, price and on delivery terms acceptable                to Purchaser. |
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|  | **C.** | Manufacturer                is a manufacturer of PWC and is capable ofproducing Products for                Purchaser                at a quality, price and on delivery terms acceptable to Purchaser. |
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|  | **D.** | Purchaser                and Manufacturer desire to enter into this Agreement for the purpose                offormalizing the terms and conditions under which Purchaser agrees                to                purchase Products from Manufacturer and Manufacturer agrees to produce                them for Purchaser. |
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**AGREEMENT**

| **1.** | **DEFINITIONS** |
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|  | **1.1** | "Affiliate                or Affiliates" shall mean any corporation. film, partnership, or                other                entity, whether de jure or de factor, that directly or indirectly                owns. is                owned by. or is under common ownership with a party to this Agreement                to                the extent of at least 50 percent of the equity having the power                to vote                on or direct the affairs of the entity and any person, firm, partnership,                corporation, or other entity actually controlled by. controlling,                or under                common control with a party to this Agreement. |
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|  | **1.2** | "Business                Practices" includes information relating to intellectual property.                business plans. financial information, Products. services. manufacturing |
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**1**

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|  | **1.3** | "Confidential                Information" includes, but is not limited to, all information proprietary                to Purchaser, whether or not reduced to writing or other tangible                medium                of expression, and whether or not patented, patentable, capable of                trade                secret protection, or protected as unpublished or published work                under the                United States COPYIight Act of 1976 as amended. Confidential Information                also includes information relating to the Intellectual Property and                Business Practices of Purchaser. Confidential Information also includes                comparable information that Purchaser may receive or has received                from                others Purchaser does business with. Confidential Information does                not                include information which (1) was already known to Manufacturer or                its                Affiliates prior to the Effective Date, (2) becomes generally available                to                the public, other than through a breach ofthis Agreement, or (3)                is                furnished to Manufacturer by a third party who is lawfully **in**possession                of such information and who lawfully conveys this information. |
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|  | **1.4** | "Effective                Date" shall mean May 26, 2005. |
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|  | **1.5** | "Forwarder"                shall mean a freight company designated by Purchaser that shall have                responsibility for managing all transportation logistics for the                Products. |
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|  | **1.6** | "Intellectual                Property" includes information relating to research and development,                inventions, discoveries, developments, improvements, methods and                processes, know-how, drawings, blueprints, specifications, product                briefs,                algorithms, computer programs and software, compositions, works,                concepts,                designs, ideas, prototypes, models, samples, screens. molds, lists,                patents, copyrights, trademarks, trade names, trade secrets, formulae,                writings, notes, and patent, trademark, and copyright applications. |
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|  | **1.7** | "Molds"                shall mean all molds, patterns, dies, tools, plates, stamps and all                related materials used **in**the                manufacture of the Products or any component thereof. |
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|  | **1.8** | "Products"                shall mean the Xboard" PWC as well as other proprietary products                utilizing                a rotary engine that Manufacturer is authorized to produce pursuant                to one                or more valid written purchase orders or sample request forms from                Purchaser. |
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|  | **1.9** | "Purchaser                Assets" shall mean Molds. Trademarks and Confidential Information. |
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|  | **1.10** | "Trademarks"                shall mean trademarks, copyrights, trade names, symbols. logos, slogans,                trade dress, designs. design rights. style names and components thereof.                now or hereafter owned, licensed or controlled by Purchaser or any                subsidiaries or affiliates thereof and any other intellectual |
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**2**

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| **2.** | **ADDITIONAL                CONSIDERATION TO TOOL UP MANUFACTURING** |
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|  | **2.1** | As                an additional inducement (beyond the prices paid for Products manufactured                pursuant to this Agreement) for Sumeeko to contribute and make necessary                investments relating to tooling up a new manufacturing plant to                manufacture the Products for Purchaser, Encompass shall, immediately                upon                execution of this Agreement, issue to Sumeeko a stock certificate                representing one hundred thousand (100,000) shares of its Series                C                preferred stock, which shall be convertible to ten million (10,000,000)                shares of Encompass's common stock. The conversion of the Series                C                preferred shares to common shares shall occur no earlier than one                year                from the date this Agreement is executed by the parties and is subject                to                the terms and conditions applicable to Encompass's Series C preferred                stock. |
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|  | **2.2** | Encompass                hereby agrees to amend its Articles of Incorporation to specify that                one                member of its Board of Directors may be designated by Sumeeko. |
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|  | **2****.3** | Sumeeko                will have full voting privileges except when it relates to issues                that are                related to this contract. |
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| **3.** | **AGREEMENT                FOR EXCLUSIVE MANUFACTURE AND                SUPPLY** |
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|  | **3.1** | For                the limited purpose of manufacturing Products exclusively for Purchaser                as                provided in the Agreement, Purchaser hereby appoints Manufacturer                as                Purchaser's exclusive worldwide manufacturer of the                Products. |
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|  | **3.2** | For                the limited purpose of manufacturing Products exclusively for Purchaser                as                provided in this Agreement, Purchaser hereby grants to Manufacturer                an                exclusive, worldwide, non-assignable and revocable license to use                the                Trademarks in the manufacturer of the Products. |
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|  | **3.3** | Subj                ect to the terms of this Agreement, Manufacturer shall manufacture,                pack                and deliver the Products for sale to Purchaser strictly in accordance                with                the processes, specifications, technical information, drawings, samples                and quality standards furnished or approved in writing by Purchaser.                The                Products shall be manufactured for and sold only to Purchaser.                Manufacturer expressly acknowledges that Purchaser may purchase,                and shall                have the right to purchase, the Products from persons other than                Manufacturer, if Manufacturer is unable to maintain a timely supply                of                Products, at a reasonable price, |
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|  | **3.3.1** | For                purposes of this Section 3.3, the word "timely" shall mean a date                within                30 days ofthe Estimated Time of Product Delivery under Section 5.4 |
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**3**

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|  | **3.3.2** | For                purposes of this Section 3.3, the phrase "reasonable price" shall                mean a                price for a Product less than or equal to an amount 100 percent of                Manufacturer's actual cost of raw materials, labor and administrative                overhead for the Product plus Manufacturer's average gross profit                margin                for all products it manufactures. |
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|  | **3.4** | Manufacturer                shall only ship the quantity of the Products stipulated in the applicable                purchase order from Purchaser or such other quantity as may be agreed                in                writing by Purchaser and Manufacturer. Each purchase order issued                by                Purchaser to Manufacturer shall constitute a separate contract. If                Manufacturer produces Products at any time in excess of the amounts                set                forth in each such purchase order, Manufacturer will notify the Purchaser                of same. Purchaser may then, at its election, amend said purchase                order                and purchase the excess production, or roll into next open purchase                order.                If there are no additional open orders a plus or minus 10% quantity                will                be accepted. |
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|  | **3.5** | Purchase                orders typically shall specify an order quantity for a one-year period                and                further specify monthly draw down quantities that must be delivered                against the purchase order ("Monthly Draw Downs"), unless an alternative                arrangement is made. |
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|  | **3.6** | Manufacturer                shall not manufacture or supply any Products or goods whatsoever                using any                Confidential Information or bearing any of the Trademarks for any                person                other than Purchaser. Manufacturer also shall not at any time manufacture                or sell (or assist others in manufacturing or selling) any Products                or                other goods which bear a trademark, trade name, trade dress, logo                or other                mark or design which, in the sole opinion of Purchaser, infringes                or is                confusingly or deceptively similar to any ofthe Trademarks, or is                likely                to be confused with or regarded as similar to the Products or to                infringe                any copyright or other intellectual property rights of Purchaser. |
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|  | **3.7** | The                Purchaser has the right to inspect the facilities of or review any                supplier from which any raw material or component used in manufacture                of                the Products being purchased. Notwithstanding any such inspection                or                review Purchaser or its designees may make of any supplier. Manufacturer                shall retain sole responsibility for the quality of the Products                produced                hereunder. Aqua Xtremes will not circumvent the relationship between                the                manufacturer and its' sub-suppliers during the term of this agreement. |
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| **4.** | **SAMPLES                AND INSPECTION** |
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|  | **4.1** | During                the term of this Agreement. Purchaser may request Manufacturer to                produce                samples of any new Product to be manufactured and Manufacturer shall                deliver such samples to Purchaser in accordance with the time schedule                mutually agreed upon by Purchaser and Manufacturer. |
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|  | **4.2** | For                any samples requested by Purchaser, Purchaser shall pay Manufacturer                the                actual cost of manufacturing                such                samples. |
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**4**

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|  | **4.3** | Manufacturer                shall strictly comply with Purchaser's instructions in the manufacture,                finishing and packing of samples. |
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|  | **4.4** | Purchaser                and/or its authorized representative shall have the right at any                time to                visit any places under the control of Manufacturer (or its permitted                sub-contractors) in order to inspect the manufacture of sample Products                or                sample Product components. |
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|  | **4.5** | Unless                and until Purchaser has given written approval for shipment of the                samples                following final inspection, or in the event that Purchaser has rejected                such samples after inspection, Manufacturer will not supply any of                the                samples to any person whatsoever at any                time. |
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|  | **4.6** | Any                new products and or prototypes made by the manufacturer will automatically                be available to them as an additional product under this agreement. |
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| **5.** | **ORDER                PLACEMENT AND CONFIRMATION PROCEDURES** |
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|  | **5.1** | Manufacturer                shall not commence manufacture of a Product until Purchaser has authorized                production pursuant to a purchase order signed by an authorized                representative of Purchaser. |
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|  | **5.2** | Manufacturer                acknowledges that neither Purchaser's receipt nor approval of the                production confirmation samples nor any other provision contained                in this                Agreement shall require Purchaser to place any purchaser order for                the                Products. |
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|  | **5.3** | Any                and all orders for Products shall be made by Purchaser issuing its                own                purchase order to Manufacturer, which purchase order shall be in                the form                attached hereto as Exhibit A. In the event of any conflict between                the                terms of the purchase order and this Agreement, the terms of this                Agreement shall govern. |
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|  | **5.4** | The                Manufacturer shall confirm to Purchaser the Estimated Time of Product                Delivery to designated Forwarder ("ETD") for each Monthly Draw Down                within                ten business days of receipt of the purchase order. All terms, other                than                the acceptance itself of such purchase order or amendment thereto,                contained in Manufacturer's order confirmation form, or other document                used by Manufacturer to communicate its acceptance, shall be subject                to                Purchaser's acceptance. Any purchase order or amendment thereto shall                be                governed by the terms of this Agreement and such purchase order or                amendment thereto. |
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|  | **5.5** | Purchaser                reserves the tight to cancel or change orders up to the date that                is One                Hundred Twenty (120) days prior to the confilmed ETD for a Monthly                Draw                Down. If Purchaser cancels or changes an order. Purchaser's liability                shall be limited to the following costs incurred by Manufacturer                as of the                date the order is canceled or changed, if any: |
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|  | (a) | The                cost of raw materials. |
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|  | (b) | The                cost of work in progress. |
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**5**

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|  | **5.6** | Changes                and cancellations of orders are subject to the written approval of                the                Manufacturer under the following circumstances: |
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|  | **5.6.1** | If                the changes or cancellations change the order quantity by more than                20                percent and involve Monthly Draw Downs scheduled between 121 and                210 days                after the date ofthe purchase order; or |
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|  | **5.6.2** | If                the changes or cancellations change the order quantity by more than                50%                and involve Monthly Draw Downs scheduled between 211 days and 360                days                after the date of the purchase order. |
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| **6.** | **PRICE,                PAYMENT AND INVOICES** |
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|  | **6.1** | The                price for any new Product to be produced by Manufacturer shall be                agreed                in writing by Purchaser and Manufacturer prior to issuance of any                applicable purchase order. After such agreement, the price for that                style                of the Product shall remain film and unchanged until otherwise agreed                upon                by Purchaser and Manufacturer in writing. |
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|  | **6.2** | All                payments will be in United States Dollars unless otherwise agreed                by                Purchaser and Manufacturer in writing. |
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|  | **6.2.1** | For                shipments to the United States, unless otherwise specified in a particular                purchase order or agreed upon in writing by Purchaser and Manufacturer,                payment for the Products shall be by wire funds transfer or other                payment                method agreed to by the parties within fifteen (15) calendar days                after                presentation by Manufacturer ofdocumentation specified in this Subsection                6.2.1                and Section 6.4. Manufacturer acknowledges and agrees that documentation                specified by Purchaser may include an inspection certificate issued                by                Purchaser or its designee. |
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|  | **6.2.2** | For                shipment to countries other than the United States, unless otherwise                specified in a particular purchase order or agreed upon in writing                by                Purchaser and Manufacturer, payment for the Products shall be by                wire                funds transfer or other payment method agreed to by the parties within                seven (7) calendar days after presentation by Manufacturer of                documentation specified in this Subsection 6.2.2 and Section 6.3.                Manufacturer acknowledges and agrees that documentation specified                by                Purchaser may include an inspection certificate issued by Purchaser                or its                designee. |
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|  | **6.3** | Within                10 days of placing a purchase order, Purchaser shall secure its payments                under Section 6.2 by having a bank issue a standby letter of credit                in an                amount equal to                three                months of production which will be monitored and adjusted accordingly.                Payment shall be made to the manufacturer 10 days after receipt of                all                facsimile or electronic applicable |
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**6**

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|  | **6.4** | Manufacturer                shall render to Purchaser invoices and other documentation requested                by                and acceptable to Purchaser evidencing title and the price of the                Product.                Shipment shall also be accompanied by such other documents as may                be                required according to instruction of Purchaser for exporting the                Products                from the country of origin and thereafter entering it into the commerce                of                the destination country. |
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|  | **6.5** | The                price for any Product as agreed in Section 6.1 is exclusive of applicable                duties, tariffs, VAT, excise, sales, use and similar taxes. Purchaser                shall be liable for and pay all such applicable taxes invoiced by                Manufacturer. |
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|  | **6.6** | Manufacturer                shall not pay any commission or other form of payment in respect                to any                order for the Products to any person without the prior written consent                of                Purchaser. |
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| **7.** | **SHIPMENT,                DELIVERY AND TITLE** |
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|  | **7.1** | The                Products shall be sold CIF destination port designated by Purchaser,                unloaded. CIF shall mean Cost, Insurance and Freight, as defined                in                INCOTERMS 2000 ("INCOTERMS"). Title shall not pass to Purchaser until                a                Forwarder's Cargo Receipt has been issued by Purchaser or Purchaser's                designee, or in the case of airfreight shipments, an air waybill. |
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|  | **7.2** | Manufacturer                shall strictly comply with Purchaser's instructions in the manufacture,                finishing and packing of Products. |
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|  | **7.3** | All                purchase orders must be delivered to the Purchaser by the mutually                agreed                delivery date, as specified in Purchaser's purchase order or delivery                will                be considered late. For purchase orders held at Purchaser's request,                on                time delivery will be measured by the date originally set for shipment                and                wiII                be                invoiced as of that date. |
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|  | **7.4** | Manufacturer                shall immediately notify Purchaser of any event which might delay                delivery                of the Products ordered. Manufacturer acknowledges that time is of                the                essence. |
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|  | **7.5** | Late                deliveries will result in one of the following consequences: |
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|  | (a) | Manufacturer                shall prepare within seven (7) calendar days of the late delivery                a                written correction action plan and shall provide a copy of same to                Purchaser to review and approve. |
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|  | (b) | The                Manufacturer and Purchaser shall discuss and mutually agree upon                any                course of action which may incur additional cost in resolving a late                delivery |
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| **8.** | **PRODUCTION                SCHEDULES AND DOCUMENTATION** |
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**7**

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|  | **8.1** | The                Manufacturer will follow all shipping and documentation instructions                from                Purchaser. |
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|  | **8.2** | The                Manufacturer will submit all required shipping documents, including,                but                not limited to, the Ocean Bill of Lading (or Air Waybill), Commercial                Invoice, Packing List, and Certificate of Origin. within three business                days after the Products covered by the purchase order have been shipped. |
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|  | **8.3** | Purchaser                or its designee will issue a Certificate of Inspection only if all                documents submitted are correct and in order. unless Purchaser elects                to                waive this requirement. |
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|  | **8.4** | The                Manufacturer is expected to ship each order complete with the exact                quantity by size as listed on Purchaser's purchase order. |
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| **9.** | **INSPECTIONS                AND DEFECTIVE PRODUCTS** |
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|  | **9.1** | Purchaser                and Manufacturer acknowledge that the first 5,000 units of Product                production shall be considered prototypes and involve joint cooperation                and inspection of all components and finished Products. |
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|  | **9.2** | For                units 5,00 I -10,000 of Product production, joint inspection shall                also                occur. During production of units 5,00 I -10,000, final Product                specifications will be certified by Purchaser and Manufacturer, and                the                final quality assurance documents will be created and agreed to by                the                parties. |
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|  | **9.3** | For                units 10,001 and beyond: |
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|  | **9.3.1** | Manufacturer                shall provide Purchaser, or its designees, with access to all paJis                of                Manufacturer's factory and any other facilities used by Manufacturer                for                production, packaging, storage and delivery of the Products to enable                Purchaser or its designees to inspect and monitor the manufacture                of the                Products. |
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|  | **9.3.2** | Each                production purchase order will be filled only by Products that meet                the                proper specifications outlined in the specification sheets given                to the                Manufacturer by Purchaser. The quality standards set forth                shall                conform to both the Manufacturers and Purchaser's Quality Assurance                Manual. |
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|  | **9.3.3** | The                Purchaser will have an inspector or representative on site at the                Manufacturer facility during the initial production until the proper                quality systems are in place and functional. Both the Purchaser and                Manufacturer will sign off when this requirement has been fulfilled.                Following this Purchaser inspector. or an inspector designated by                Purchaser, must sign and issue the Purchaser Final Inspection Report                for                each purchase order prior to shipment. The signature by Purchaser |
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**8**

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|  | **9.3.4** | Immediately                upon discovery of any defects in the Products non-conformance with                Purchaser's specifications and/or quality standards, Manufacturer                shall                notify Purchaser of such defects, non-conformance or quality problems                in                writing. The defective Products shall, at the option of Purchaser,                be                destroyed in a manner approved in writing by Purchaser. |
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|  | **9.3.5** | Manufacturer                shall provide to Purchaser, on a quarterly basis, a written report                describing the nonconforming Products produced during that quarter. |
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|  | **9.3.6** | Purchaser                reserves the right to claim damages from the Manufacturer on all                customer                returned nonconforming Products. This means that any parts within                the                product that do not conform to the agreed upon bill of material                specifications and drawings as required will be considered a                non-conforming component. Purchaser and Manufacturer shall work to                improve                the non-conforming component first before any claim charged to each                other.                Part with minor defect but no effect function will not be considered                a                non-conforming component. |
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| **10.** | **WARRANTIES                AND DEFECTIVE PRODUCTS; INDEMNIFICATION; INSURANCE** |
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|  | **10.1** | Manufacturer                warrants and represents that the Products: (a) are free from defects                in                materials and workmanship, and conform strictly to the approved samples,                any related Confidential Information and all other applicable                specification; and (b) contain all warnings necessary for the proper                and                safe use of the Products, as provided by the Purchaser. |
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|  | **10.2** | Manufacturer                agrees to protect, defend, indemnify and hold Purchaser harmless                from all                claims, suits, liabilities, damages and expenses (including attorneys'                fees) arising from, connected with or related in any way to the                manufacture of the Products or resulting from the breach of any of                the                warranties or representations in this Agreement. |
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|  | **10.3** | Manufacturer                agrees to protect, defend, indemnify and hold harmless Purchaser                from all                claims, suits. liabilities. damages and expenses (including attorneys'                fees) arising from, connected with or with respect to violation of                any                license. law or regulation by Manufacturer within the county of when                the                Products are manufactured. |
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|  | **10.4** | Manufacturer                further agrees (without limiting any of Manufacturer's obligations                or                liabilities under this Agreement) to procure and maintain at                Manufacturer's sale cost and expense at all times. with a reasonable |
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**9**

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|  | **10.5** | Manufacturer                further                agrees                (without limiting any of Manufacturer's obligations or liabilities                under                this Agreement) to procure and maintain liability insurance with                limits of                not less than Two Million United States Dollars (USD $2,000,000)                combined                single limit bodily injury and property damage which insurance shall                have                an endorsement naming Purchaser as an individual insured, and be                in a form                and issued by a company reasonably acceptable to the Purchaser. |
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|  | **10.6** | Manufacturer                shall be responsible for Purchaser's losses or damages to Purchaser                Assets, including damages caused directly or indirectly by employees                of                Manufacturer and their agents and including damages caused during                periods                of strikes or other labor unrest. |
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|  | **10.7** | The                warranties and representations of this Section 10 will survive the                termination of this Agreement with respect to all Products produced                by                Manufacturer prior to the termination of this Agreement. |
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| **11.** | **MOLDS,                ETC.** |
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|  | **11.1** | Manufacturer                agrees (i) not to sell, transfer possession or otherwise dispose                of any                Mold used in manufacturing the Products without the prior written                consent                of Purchaser or its representative. (ii) to use such Molds solely                for the                manufacture of the Products ordered by Purchaser, and (iii) not to                reproduce such molds, unless authorized in writing by Purchaser,                except                when reproduction is necessary to manufacture the Products to fulfill                Purchaser's orders, in which case Manufacturer shall notify Purchaser                in                writing. |
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|  | **11.2** | Purchaser                Assets shall at all times remain the exclusive property of Purchaser,                and                Purchaser shall at all times retain all lights in and title to Purchaser                Assets. At no time may Purchaser Assets be used as collateral or                security                by Manufacturer and Manufacturer is expressly prohibited from granting                any                mortgage, lien, security, or other interest in Purchaser Assets to                any                person or entity, nor may Manufacturer transfer all or any interest                in or                license or                sublicense                any Purchaser Asset. Under no circumstances shall any Purchaser Assets                be                used to satisfy any debts or obligations of the Manufacturer. Manufacturer                shall be fully responsible for the maintenance and security of Purchaser                Assets and will use its best efforts to assure that Purchaser Assets                are                at all times secure and freely available to Purchaser to use as Purchaser                may detelmine. Purchaser Assets used by Manufacturer under this Agreement                shall be deemed to be held in trust for Purchaser. |
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|  | **11.3** | Manufacturer                agrees                that Purchaser and its authorized representatives shall be entitled                to                enter upon any premises of Manufacturer where any Purchaser Assets,                samples. or Products or other property of Purchaser are |
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**10**

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|  | **11.4** | Manufacturer                agrees to comply with Purchaser's Product Costing Procedures (attached                hereto as Exhibit C), as in effect from time to time (subject to                change by                mutual agreement) of the parties. |
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| **12.** | **TRADEMARKS** |
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|  | **12.1** | Manufacturer                hereby acknowledges (i) the validity of the Trademarks, (ii)                that                Purchaser has at all times had, and shall continue to have, the exclusive                right, title and interest in and to the Trademarks, (iii) that neither                this Agreement nor performance of any services by Manufacturer hereunder                shall confer on Manufacturer by right, title or interest in or to                the                Trademarks, and (iv) that Manufacturer does not have any permission                to and                will not adopt, use, register, or attempt to register as a trademark,                trade name, business name or corporate name or part thereof, whether                during the continuance ofthis Agreement or after its termination,                any                word, symbol or emblem cont1icting with or identical or similar to                any of                the Trademarks. |
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|  | **12.2** | Manufacturer                agrees that any use of the Trademarks by Manufacturer shall be to                the                advantage of Purchaser. Manufacturer shall not do or cause to be                done any                act impairing or likely to impair any part of Purchaser's right,                title and                interest in and to the Trademarks, or detrimental to the reputation                and                goodwill of Purchaser or the Products. |
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|  | **12.3** | Manufacturer                acknowledges that the sale and/or distribution of the Products and/or                use                of any of the Trademarks, except as herein agreed, may result in                immediate                irremediable damage to Purchaser, and Manufacturer further acknowledges                that Purchaser may have no adequate remedy for such damage. In the                event                of such failure, Purchaser shall be entitled to equitable relief                by way of                temporary, preliminary and permanent injunction. |
|--|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | **12.4** | Manufacturer                agrees to use its best efforts to protect the Trademarks. If any                of the                Trademarks is infringed, Purchaser may take such action as Purchaser                may                deem appropriate, and upon request Manufacturer shall at Purchaser's                expense cooperate fully in any such action. Manufacturer further                agrees to                notify Purchaser immediately of any instance in which any person                other                than Purchaser requests Manufacturer to manufacture products using                any of                the Trademarks or any name, trademark logo or design identical to                or                confusingly similar to those used by Purchaser, and of any circumstance                which suggests that any person may be wrongfully using any such name,                trademark. logo or design. Manufacturer shall not take any action                with                respect to any such request or use unless directed in writing to                do so by                Purchaser. |
|--|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**11**

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| **13.** | **INTELLECTUAL                PROPERTY** |
|---------|------------------------------------------|

|  | **13.1** | All                Intellectual Property conceived, made, created, developed, or reduced                to                practice by Manufacturer (whether alone or with others, whether or                not                during normal business hours) in the course of or in connection with                Manufacturer's performance under this Agreement. shall be the property                of                Purchaser. All Intellectual Property shall be Confidential Information.                Manufacturer                shall promptly and fully disclose to Purchaser all Intellectual property                during the term of this Agreement and for one year after the completion                or                termination of this Agreement. Manufacturer shall maintain throughout                the                term of this Agreement up-to-date notebooks or other records of                Intellectual Property. Such records shall be considered Confidential                Information and shall be the sole property of Purchaser. |
|--|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | **13.2** | Manufacturer                agrees to assign and hereby assigns to Purchaser, without additional                consideration, Manufacturer's full right, title and interest in and                to all                Intellectual Property conceived, made, created, developed, or reduced                to                practice by Manufacturer (whether alone or with others, whether or                not                during normal business hours) in the course of or in connection with                Manufacturer's performance under this Agreement. Manufacturer agrees                not                to file any patent, trademark, or copyright applications relating                to the                Intellectual Property, except with prior written consent of Purchaser.                To                the extent applicable, all copyrightable works that Manufacturer                creates                and that qualify as Intellectual Property shall be considered "works                made                for hire" as defined by the copyright laws of the United States.                To the                extent such copyrightable works are not deemed "works made for hire"                Manufacturer agrees to assign and hereby assigns to Purchaser without                additional consideration, all copyrights in such copyrightable works.                Manufacturer agrees that, during the term of this Agreement and subsequent                to the completion or termination of this Agreement, Manufacturer                will, at                Purchaser's request and expense, execute all applications for United                States and foreign patents, trademarks. copyrights, or other rights,                and                will otherwise provide assistance (including but not limited to the                execution and delivery of instruments of further assurance or                confirmation) to assign Intellectual Property, copyrights and Trademarks                to Purchaser and to permit Purchaser to enforce any patents, trademarks,                copyrights, or other rights in and to Intellectual Property, Manufacturer                warrants to Purchaser that it shall secure such agreements with its                employees and/or permitted subcontractors as are necessary to can)'                out                the provisions of this Section. |
|--|----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | **13.3** | Notwithstanding                Sections 13.1                and                13.2,                Purchaser                agrees to allow Manufacturer to use Intellectual Property and Confidential                Information conceived, made. created, developed or reduced to practice                by                Manufacturer in the course of or in connection with Manufacturer's                pcrfonnance under this Agreement, so long as the use of such Intellectual                Property or Confidential Information is pre-approved in writing by                Purchaser and Purchaser determines that its use by Manufacturer would                not                be detrimental to Purchaser. |
|--|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**12**

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| **14.** | **CONFIDENTIAL                INFORMATION AND NON-DISCLOSURE** |
|---------|----------------------------------------------------------------|

|  | **14.1** | Manufacturer                acknowledges that during the course of its relationship, Purchaser                may                disclose or Manufacturer may learn of Purchaser's Confidential                Information. Manufacturer agrees to take reasonable steps to protect                Purchaser's Confidential Information. Manufacturer agrees to not:                (                1) use, except as required by the normal and proper course of performing                under this Agreement, (2) disclose, (3) copy, or (4) allow access                to,                Purchaser's Confidential Information without the express prior written                consent of Purchaser. These restrictions will continue to apply as                long as                the confidential nature of the information is maintained. |
|--|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | **14.2** | Manufacturer                shall make its employees, agents, principals, and independent contractors                aware of the confidentiality obligations of this Agreement and                Manufacturer shall require its employees, agents, principals, and                independent contractors to execute confidentiality agreements in                form and                substance satisfactory to Purchaser undertaking an obligation of                confidentiality comparable to that provided in this Agreement. |
|--|----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | **14.3** | Manufacturer                agrees to return to Purchaser promptly upon the termination of this                Agreement, or at any other time when requested, Purchaser's property,                including but not limited to all Confidential Information, media                containing such Confidential Information and copies thereof. |
|--|----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | **14.4** | Manufacturer                (including its principals and employees) represents and warrants                that                entering into and performing under this Agreement does not conflict                with                any prior obligation to third parties. Manufacturer agrees not to                disclose                to or use on behalf of the other, any confidential or proprietary                information belonging to a third party (including prior employers,                employees and customers) unless written authorization from the third                party                is first obtained in form and substance satisfactory to Purchaser. |
|--|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **15.** | **NONCIRCUMVENTION                COVENANT** |
|---------|----------------------------------------------|

**13**

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| **16.** | **FORCE                MAJEURE, ETC.** |
|---------|----------------------------------------|

| **17.** | **TERM                AND TERMINATION** |
|---------|-----------------------------------------|

|  | **17.1** | This                Agreement is effective as of the Effective Date and shall continue                in full                force and effect until terminated by any party as provided in this                Agreement. Sections 1,9-13,17-19,21-22,26,28 and 30-31 shall survive                any                termination of this Agreement. |
|--|----------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | **17.2** | Purchaser                or Manufacturer shall have the right to terminate this Agreement                and any                purchase order for cause at any time by giving thirty (30)                days' notice in writing to Manufacturer or Purchaser (or immediately                as                provided in Section 16.2 (iii)) if any ofthe following events occur: |
|--|----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (i) | if                Manufacturer or Purchaser commits a significant breach of any of                the terms                of this Agreement and fails toremedy the same within Sixty (60) days                of                being notified by the other party of the breach; |
|--|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (ii) | If                Manufacturer shall sell or transfer a significant portion of its                assets,                or if any person competing or likely to compete with the Products                acquires                direct or indirect control of Manufacturer or Purchaser; |
|--|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (iii) | Immediately                upon filing or petitioning by Manufacturer or Purchaser or its creditors                or any other eligible party for Manufacturer's or Purchaser's liquidation,                bankruptcy, reorganization, compulsory composition, or dissolution,                or if                Manufacturer or Purchaser is unable to pay any debts as they become                due or                has explicitly or implicitly suspended payment of any debts as they                become                due (except debts contested in good faith), or if any assignment                is made                for the benefit of Manufacturer's or Purchaser's creditors, or if                a                trustee or receiver has been appointed for Manufacturer or Purchaser                or                any of its assets. or if the creditors of Manufacturer have taken                over its                management, or if any relevant financial institutions have suspended                Manufacturer's or Purchaser's clearing house privileges. or if any                material or significant part of Manufacturer's or Purchaser's undertaking,                property, or assets shall be intervened in, expropriated, or confiscated                by action of any government. |
|--|-------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **18.** | **CONSEQUENCES                OF TERMINATION** |
|---------|------------------------------------------------|

|  | **18.1** | On                the termination of the Agreement for any reason, Manufacturer shall                immediately: |
|--|----------|-------------------------------------------------------------------------------------------------------------------|

**14**

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|  | (i) | Stop                manufacturing, distributing, selling or in any way dealing with any                Products bearing the Trademarks, or any carton, container, packing                or                wrapping material, or advertising, promotional, or display material                pertaining thereto. except as consented to by Purchaser in writing;                and |
|--|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | (ii) | Upon                receipt of a written request from Purchaser promptly sell to Purchaser,                at                the Manufacturer's cost, raw materials, packing materials or components                and semi-finished Products held by or on behalf of Manufacturer or                under                the control of Manufacturer at the date of termination. |
|--|------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | **18.2** | Sixty                (60)                days                before the expiration of this Agreement and/or five (5)                days                after Manufacturer's receipt of notice of earlier termination,                Manufacturer shall furnish Purchaser with a statement showing the                number                and description of the Products in its possession or under its control.                Purchaser reserves the right to take a physical inventory of the                Products                to verify such inventory and Manufacturer agrees to allow Purchaser's                authorized representatives on its premises to carry out such inventory.                This right shall also extend for 90 days beyond the termination of                this                Agreement. Such physical inventory may be undertaken during regular                business hours by Purchaser without advance notice to Manufacturer. |
|--|----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | **18.3** | Upon                termination of this Agreement, all Molds and equipment shipped in                and used                in the manufacturing of the Products shall be deemed owned by Purchaser,                and Purchaser has the right upon giving reasonable notice to take                possession of such Molds and equipment. Purchaser acknowledges, however,                that possession of certain unamortized Molds financed by Manufacturer,                may                not be recovered by Purchaser unless Purchaser first pays Manufacturer                the                unamortized cost of the Molds paid by Manufacturer. |
|--|----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|  | **18.4** | The                termination of this Agreement shall not affect the respective rights                and                liabilities of each of the parties hereto which accrued prior to                such                termination. Notwithstanding Section 17.1 above, after the termination                of                this Agreement, if Purchaser so elects, the parties shall continue                to be                bound by the terms herein until Manufacturer completes any outstanding                Purchase order(s) which had commenced prior to the notice of Termination, |
|--|----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **19.** | **COMPLIANCE                WITH LOCAL LAWS; CHINA                FACTORIES** |
|---------|-------------------------------------------------------------------------------|

**15**

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| **20.** | **CURRENCY** |
|---------|--------------|

| **21.** | **NOTICES** |
|---------|-------------|

| If                  to Manufacturer: Alex                  ChenChief                  Executive OfficerSumeeko                  Industries Co., Ltd.20,                  Huaxi RoadTa-Fa                  Industrial DistrictKaohsiung                  County 831Taiwan,                  ROCFax:                  886 7 788 7668E-mail:                  alex@sumeeko.com | If                  to Purchaser: Arthur                  RobinsChief                  Executive OfficerAqua                  Xtremes, Inc.1005                  Terminal Way, Suite 110Reno,                  NV 89502USAFax:                  561.431.8274e-mail:                  arobins@aquaxtremes.com |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| **22.** | **ASSIGNMENT** |
|---------|----------------|

| **23.** | **NO                PARTNERSHIP OR AGENCY** |
|---------|---------------------------------------------|

| **24.** | **SUB-CONTRACTORS** |
|---------|---------------------|

**16**

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| **25.** | **WAIVER** |
|---------|------------|

| **26.** | **GOVERNING                LAW, ARBITRATION** |
|---------|-----------------------------------------------|

| **27.** | **FURTHER                REPRESENTATIONS****AND                WARRANTIES** |
|---------|-----------------------------------------------------------------------------|

| **28.** | **ENTIRE                AGREEMENT** |
|---------|-------------------------------------|

**17**

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| **29.** | **AMENDMENT** |
|---------|---------------|

| **30.** | **HEADINGS/COUNTERPARTS** |
|---------|---------------------------|

| **31.** | **GOVERNING                LANGUAGE** |
|---------|---------------------------------------|

**18**

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| **ENCOMPASS                  HOLDINGS, INC.** By:                  /s/ Arthur                  Robins                                         Arthur                  RobinsChief                  Executive Officer **EXTREME                  ENGINES, INC.** By:                  /s/ Arthur                  Robins                                         Arthur                  RobinsChief                  Executive Officer | **SUMEEKO                  INDUSTRIES CO., LTD.** By:                  /s/ Alex                  Chen                                                Alex                  ChenChief                  Executive Officer **AQUA                  XTREMES, INC.** By:                  /s/ Arthur                  Robins                              Arthur                  RobinsChief                  Executive Officer |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

**19**

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**EXHIBIT      A **

**FORM      OF AQUA XTREMES, INC. PURCHASE ORDER**

**20**

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**EXHIBIT      B **

**PRODUCTION      **
**STANDARDS**

**Non-Discrimination**
**.**

**Working        Hours/Overtime**
**.**

**Forced        or Compulsory Labor**
**.**

**Fair        Wages**
**.**

**Child        Labor**
**.**

**Freedom        of Association**
**.**

**Safe        and Healthy Work Environment**
**.**

**21**