Document:

LEASE TERMINATION AGREEMENT
                           ---------------------------

     This  Lease  Termination Agreement, dated as of the _____ day of June, 2007
(the "AGREEMENT"), is entered into by and between Teachers Insurance and Annuity
Association of America, for the benefit of its Real Estate Account, as successor
to  Metropolitan  Life  Insurance Company ("TEACHERS"), and CDSS Wind Down Inc.,
f/k/a  Citadel  Security  Software  Inc.  ("CDSS").

     WHEREAS,  on  or  about May 28, 2004, CDSS entered into that certain Office
Lease  Agreement  at  Two  Lincoln  Centre  Between  Metropolitan Life Insurance
Company  and  Citadel  Security  Software, Inc., as amended and/or modified (the
"LEASE"),  a  copy  of  which  is  attached hereto as Exhibit A and incorporated
herein  by  reference;  and

     WHEREAS,  pursuant  to  the  Lease,  CDSS  leased Suite 1600 in Two Lincoln
Centre,  5420  LBJ  Freeway,  Dallas, Texas 75240 (the "PREMISES") for a term of
ninety-six  (96)  months,  commencing  on  September  1, 2004 and terminating on
August  31,  2012;  and

     WHEREAS,  Teachers  acquired  the  building  in  which  CDSS had leased the
Premises,  as  well  as  Metropolitan's  rights  under  the  Lease;  and

     WHEREAS,  CDSS  has sold substantially all of its assets (the "Asset Sale")
and has ceased substantially all of its business and operations on the Premises;
and

     WHEREAS,  Teachers  is  willing  to terminate the Lease prior to August 31,
2012  and release CDSS from further obligations under the Lease on the terms and
conditions  set  forth  below.

     NOW,  THEREFORE,  in consideration of the mutual covenants, agreements, and
other  provisions  contained  in this Agreement, and for other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, CDSS
and  Teachers  hereby  agree  as  follows:

     1.     CDSS  shall  surrender  and  deliver  possession  of the Premises to
Teachers  on or before the later of June 30, 2007 or ten days after Teachers has
provided  the  notice  set  forth  in Section 8 (the "Move-Out Date"); provided,
however, that Teachers and/or its agents, representatives and contractors shall,
at  any  and  all  times  prior  to  the Move-Out Date, be entitled to enter the
Premises  and  to  conduct  all  activities in or about the Premises as Teachers
deems  appropriate  to build out, modify, renovate, and/or otherwise prepare the
Premises  for  occupancy  by  a  new  tenant  on  July  1,  2007.

     2.     CDSS shall be responsible for payment of rent through June 30, 2007.
CDSS'  security deposit in the amount of $52,000.00 shall be applied by Teachers
as  payment  in  full  for  all  rent  due  by  CDSS  through  June  30,  2007.

     3.     CDSS  shall  pay  and  deliver  to  Teachers  the  additional sum of
$500,000.00  by cashiers or certified check by the earlier of: a) June 30, 2007;
or  b)  within  five (5) days after receipt of written notice from Teachers that
Teachers  has  executed  a  lease  agreement  with  a

LEASE TERMINATION AGREEMENT - PAGE 1
<PAGE>
replacement  tenant  for  the  Premises.

     4.     CDSS  shall  transfer  and  convey  or  cause  to be transferred and
conveyed  to Teachers all right, title and interest in the furniture, equipment,
and  other  personal  property  located in the Premises and listed in Exhibit B,
which  is  attached  hereto  and incorporated herein by reference (the "Personal
Property") and shall accomplish same through the execution of a warranty bill of
sale,  the  form  of  which is attached hereto as Exhibit C. CDSS represents and
warrants  to  Teachers  that  the  Personal  Property  shall  be transferred and
conveyed  to  Teachers  free  and  clear  of  any  liens, encumbrances, security
interests,  or  claims  of  any  kind or nature. The Personal Property shall not
include  any  of  the  following items located in the Premises, all of which are
identified  on  the attached Exhibit D and shall remain the property of CDSS and
which shall be removed from the Premises by CDSS on or before the Move-Out Date:
a)  artwork;  b) TV monitors; c) computers and computer components; d) printers,
fax  machines,  and  leased  equipment;  e)  reception area furniture other than
millwork; f) personal effects and documentation; g) Citadel signage; h) supplies
and  computer parts; i) file cabinets located inside storage areas; and j) racks
and  equipment  inside  the  server  room  (except  for  any components or other
equipment  necessary for the use or operation of the UPS, security, or telephone
systems).

     5.     The  Lease  shall  terminate  as  of June 30, 2007 (the "Termination
Date").  The  Termination  Date  shall  be  the termination date as such term is
defined  on page 4 of the Lease for all purposes. It is the parties' intent only
to  terminate the Lease early, as if the Termination Date was the original lease
termination  date contained in the Lease, leaving all other rights, obligations,
responsibilities  or  liabilities, if any, as set forth in the Lease, unchanged.
Thus,  except  as  otherwise  provided herein, the parties' rights, obligations,
responsibilities  or  liabilities  upon  termination  of  the Lease as set forth
herein,  shall  be governed by the Lease, just as if the Lease was terminated in
accordance  with the terms of the Lease. For example, Tenant shall surrender the
Premises  in  the  condition  required  in  Section  12  of  the  Lease.

     6.     CDSS and Teachers agree to perform any further acts, and execute and
deliver  any further documents, including but not limited to bills of sale, that
may  be  reasonably  necessary  to  carry  out the provisions of this Agreement.

     7.     This Agreement shall be binding upon and inure to the benefit of the
parties to this Agreement and their respective heirs, successors, and permitted
assigns.

     8.     THIS AGREEMENT, AND ALL OF THE RIGHTS AND OBLIGATIONS OF THE PARTIES
CONTAINED  HEREIN,  SHALL  BE  STRICTLY CONTINGENT UPON TEACHERS' EXECUTION OF A
LEASE  AGREEMENT (WHICH SHALL BE ACCEPTABLE TO TEACHERS IN ITS SOLE AND ABSOLUTE
DISCRETION)  WITH  A  REPLACEMENT  TENANT FOR THE PREMISES ON OR BEFORE JUNE 14,
2007.  IN  THE  EVENT  THAT  TEACHERS  DOES NOT EXECUTE A LEASE AGREEMENT WITH A
REPLACEMENT  TENANT  FOR THE PREMISES ON OR BEFORE JUNE 14, 2007, THIS AGREEMENT
SHALL  BE  NULL  AND VOID, AND THE LEASE SHALL CONTINUE IN FULL FORCE AND EFFECT
PURSUANT  TO  ITS  TERMS.  TEACHERS  SHALL  PROVIDE  PROMPT NOTICE TO CDSS AS TO
WHETHER  IT  HAS  ENTERED  INTO  THE  LEASE AGREEMENT WITH A REPLACEMENT TENANT.

LEASE TERMINATION AGREEMENT - PAGE 2
<PAGE>
     9.     Each  signatory to this Agreement represents and warrants that he or
she  is  fully and legally authorized to execute this Agreement on behalf of the
party  for  whom  he  or  she  is  signing.

     IN  WITNESS WHEREOF, the parties have executed this Agreement as of the day
and  year  first  above  written.

                                        TEACHERS INSURANCE AND ANNUITY
                                        ASSOCIATION OF AMERICA, FOR THE
                                        BENEFIT OF ITS REAL ESTATE ACCOUNT

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

                                        CDSS WIND DOWN INC.,
                                         F/K/A CITADEL SECURITY SOFTWARE, INC.

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------

LEASE TERMINATION AGREEMENT - PAGE 3EX 10.1

    SHARE
      PURCHASE AGREEMENT

    

    SHARE
      PURCHASE AGREEMENT (this “Agreement”), dated June 19, 2007, among Franklin
      Towers Enterprises, Inc., a Nevada corporation (the "Buyer"), Chongqing Qiluo
      Textile Co. Ltd., a limited liability company organized under the laws of the
      People’s Republic of China (the "Company"), Xinshengxiang Industrial Development
      Co., Ltd., a limited liability company organized under the laws of the People’s
      Republic of China (“Xinshengxiang”), Mr. Dingliang Kuang, a individual residing
      at Group 5, Baisheng Town, Fuling District, Chongqing City, China (“Dingliang”),
      and Ms. Yue Kuang, an individual residing at No.22, Dunren Wangzhou Road, Fuling
      District, Chongqing City, China (“Yue,” and together with Xinshengxiang and
      Dingliang, the "Sellers").

    

    R
      E C
      I T A L S :

    

    A.
       Sellers
      in the aggregate own one hundred percent (100%) of the shares of the registered
      capital stock of the Company (the “Shares”).

    

    B.
       The
      parties hereto desire that the Buyer acquire the Company by purchasing from
      Sellers all of the Shares upon the terms and subject to the conditions of this
      Agreement.

    

    NOW
      THEREFORE, in consideration of the mutual covenants and agreements herein,
      and
      the other good and valuable consideration, the adequacy, sufficiency and receipt
      of which are hereby acknowledged, the parties hereto agree as
      follows:

    

    ARTICLE
      I

    DEFINITIONS
      AND USAGE

    

    1.1
      DEFINITIONS

    

    Certain
      capitalized terms used in this Agreement are defined in Exhibit
      1.1
      attached
      hereto. 

    

    1.2
      USAGE

    

    (a) Interpretation.
      In this
      Agreement, unless a clear contrary intention appears: (i) the singular number
      includes the plural number and vice versa; (ii) reference to any Person includes
      such Person's successors and assigns but, if applicable, only if such successors
      and assigns are not prohibited by this Agreement, and reference to a Person
      in a
      particular capacity excludes such Person in any other capacity or individually;
      (iii) reference to any gender includes each other gender; (iv) reference to
      any
      agreement, document or instrument means such agreement, document or instrument
      as amended or modified and in effect from time to time in accordance with the
      terms thereof; (v) reference to any Legal Requirement means such Legal
      Requirement as amended, modified, codified, replaced or reenacted, in whole
      or
      in part, and in effect from time to time, including rules and regulations
      promulgated thereunder, and reference to any section or other provision of
      any
      Legal Requirement means that provision of such Legal Requirement from time
      to
      time in effect and constituting the substantive amendment, modification,
      codification, replacement or reenactment of such section or other provision;
      (vi) "hereunder," "hereof," "hereto," and words

      
        
           

        

        
          -1-

          
            

          

        

        
           

        

      

    of
      similar import shall be deemed references to this Agreement as a whole and
      not
      to any particular Article, Section or other provision hereof; (vii) "including"
      (and with correlative meaning "include") means including without limiting the
      generality of any description preceding such term; (viii) "or" is used in the
      inclusive sense of "and/or"; (ix) with respect to the determination of any
      period of time, "from" means "from and including" and "to" means "to but
      excluding"; and (x) references to documents, instruments or agreements shall
      be
      deemed to refer as well to all addenda, exhibits, schedules or amendments
      thereto.

    

    (b) Accounting
      Terms and Determinations.
      Unless
      otherwise specified herein, all accounting terms used herein shall be
      interpreted and all accounting determinations hereunder shall be made in
      accordance with GAAP.

    

    (c) Legal
      Representation of the Parties.
      The
      parties agree that each party was either represented by its own separate and
      independent counsel or had an opportunity to be so represented in connection
      with this Agreement and the transactions contemplated hereby. This Agreement
      was
      negotiated by the parties with the benefit of legal representation, and any
      rule
      of construction or interpretation otherwise requiring this Agreement to be
      construed or interpreted against any party shall not apply to any construction
      or interpretation hereof.

    

    ARTICLE
      II

    SALE
      OF
      SHARES; CONSIDERATION; CLOSING

    

    2.1
      THE
      SALE

    

    Upon
      the
      terms and subject to the conditions of this Agreement, at the
      Closing:

    

    (a)
      Each
      Seller shall sell, transfer and assign to the Buyer, and the Buyer shall
      purchase from each Seller, such Seller’s respective Shares and any and all
      rights in the Shares to which such Seller is entitled, and by doing so Sellers
      shall be deemed to have assigned all of the right, title and interest in and
      to
      the Shares to Buyer. Such sale of the Shares shall be evidenced by stock
      certificates, duly endorsed in blank or accompanied by stock powers duly
      executed in blank, or other instruments of transfer in form and substance
      satisfactory to the Buyer.

    

    (b)
      In
      consideration therefor, the Buyer shall issue to an aggregate of 5,000,000
      shares (the “Consideration Shares”) of Series A Convertible Preferred Stock, par
      value $0.001 per share, of the Buyer, which shall be allocated between Sellers
      as follows: ---4,750,000
      Consideration Shares to Xinshengxiang; 125,000 Consideration Shares to
      Dingliang; and 125,000 Consideration Shares to Yue. The Consideration Shares
      shall be payable at the Closing by the issuance and delivery by Buyer to Sellers
      of stock certificates dated as of the Closing Date registered in the names
      and
      in such amounts as aforementioned.

    

    2.2
      CLOSING

    

    The
      purchase and sale provided for in this Agreement (the "Closing") will take
      place
      at the offices of David Lubin & Associates, PLLC, 26 East Hawthorne Avenue,
      Valley Stream, New York 11580, commencing at 10:00 a.m. (local time) on June
      19,
      2007. Subject to the provisions of

      
        
           

        

        
          -2-

          
            

          

        

        
           

        

      

    Article
      9, failure to consummate the purchase and sale provided for in this Agreement
      on
      the date and time and at the place determined pursuant to this Section 2.2
      will
      not result in the termination of this Agreement and will not relieve any party
      of any obligation under this Agreement. In such a situation, the Closing will
      occur as soon as practicable, subject to Article 9.

    

    2.3
      CLOSING OBLIGATIONS

    

    In
      addition to any other documents to be delivered under other provisions of this
      Agreement, at the Closing:

    

    (a) Sellers
      or Company, as the case may be, shall deliver to Buyer: 

    

    (i)
      stock
      certificates evidencing the Shares, duly endorsed in blank or accompanied by
      stock powers duly executed in blank, with signatures guaranteed by a commercial
      bank, or other instruments of transfer in form and substance reasonably
      satisfactory to Buyer; 

    

    (ii)
      the
      stock books, stock ledgers, minute books, and corporate seals of
      Company;

    

    (iii)
      the
      financial statements referred to in Section 3.4 hereof and other information
      required to be filed pursuant to the Exchange Act with the SEC by Buyer on
      its
      Current Report on Form 8-K in connection with the Closing;

    

    (iv)
      a
      certificate executed by each Seller representing and warranting to Buyer that
      each of Seller’s representations and warranties in this Agreement was accurate
      in all respects as of the date of this Agreement and is accurate in all respects
      as of the Closing Date as if made on the Closing Date (giving full effect to
      any
      supplements to the Schedules that were delivered by Seller to Buyer prior to
      the
      Closing Date in accordance with Section 5.5); 

    

    (v)
      an
      opinion of counsel to the Company and Sellers in the form annexed hereto as
      Exhibit
      2.3(a)(v);
      and

    

    (vi)
      such
      other documents and other instruments of transfer and conveyance as may be
      requested by Buyer, each in form and substance satisfactory to Buyer and its
      legal counsel and executed by Seller, if necessary.

    

    (b) Buyer
      shall deliver to the Seller:

    

    (i) stock
      certificates evidencing the Consideration Shares; and

    

    (ii) a
      certificate executed by Buyer as to the accuracy of its representations and
      warranties as of the date of this Agreement and as of the Closing and as to
      its
      compliance with and performance of its covenants and obligations to be performed
      or complied with at or before the Closing. 

    
      
        
           

        

        
          -3-

          
            

          

        

        
           

        

      

    

     

    ARTICLE
      III

    REPRESENTATIONS
      AND WARRANTIES OF SELLERS

    

    Each
      of
      Sellers and the Company, jointly and severally, represent and warrant to Buyer,
      as of the date hereof and as of the Closing Date, as follows:

    

    3.1
      ORGANIZATION AND GOOD STANDING

    

    (a) Schedule
      3.1(a)
      contains
      a complete and accurate list of Company's jurisdiction of organization and
      any
      other jurisdictions in which it is qualified to do business as a foreign entity.
      Company is a limited liability company duly organized, validly existing and
      in
      good standing under the laws of its jurisdiction of organization, with full
      corporate power and authority to conduct its business as it is now being
      conducted, to own or use the properties and assets that it purports to own
      or
      use, and to perform all its obligations under the Company Contracts. Company
      is
      duly qualified to do business as a foreign entity and is in good standing under
      the laws of each state or other jurisdiction in which either the ownership
      or
      use of the properties owned or used by it, or the nature of the activities
      conducted by it, requires such qualification.

    

    (b) Complete
      and accurate copies of English translations of the Governing Documents of
      Company, as currently in effect, are attached to Schedule
      3.1(b)
      hereto.

    

    (c) Company
      has no subsidiaries and does not own any shares of capital stock or other
      securities of any other Person.

    

    3.2
      ENFORCEABILITY; AUTHORITY; NO CONFLICT

    

    (a) This
      Agreement constitutes the legal, valid and binding obligation of each Seller
      and
      the Company, enforceable against each of them in accordance with its terms.
      Upon
      the execution and delivery by each Seller and the Company of this Agreement
      and
      each other agreement to be executed or delivered by Sellers at the Closing,
      including the Kelly Fan Stock Purchase Agreement (collectively, the “Sellers’
Closing Documents”), the Sellers’ Closing Documents will constitute the legal,
      valid and binding obligation of each of Seller and the Company, enforceable
      against each of them in accordance with its terms. Each
      Seller and the Company has the absolute and unrestricted right, power and
      authority to execute and deliver this Agreement and the Sellers’ Closing
      Documents to which it is a party and to perform its obligations under this
      Agreement and the Sellers’ Closing Documents, and such action has been duly
      authorized by all necessary action by Sellers and the Company. Each Seller
      and
      the Company has all necessary legal capacity to enter into this Agreement and
      the Sellers’ Closing Documents to which it is a party and to perform such its
      obligations hereunder and thereunder. 

    

    (b) Neither
      the execution and delivery of this Agreement nor the consummation or performance
      of any of the Contemplated Transactions will, directly or indirectly (with
      or
      without notice or lapse of time):

      
        
           

        

        
          -4-

          
            

          

        

        
           

        

      

    (i) Breach
      (A) any provision of any of the Governing Documents of Company or (B) any
      resolution adopted by the board of directors or the shareholders of Company;
      

    

    (ii) Breach
      or
      give any Governmental Body or other Person the right to challenge any of the
      Contemplated Transactions or to exercise any remedy or obtain any relief under
      any Legal Requirement or any Order to which Company or any of Seller, or any
      of
      the Assets, may be subject;

    

    (iii) contravene,
      conflict with or result in a violation or breach of any of the terms or
      requirements of, or give any Governmental Body the right to revoke, withdraw,
      suspend, cancel, terminate or modify, any Governmental Authorization that is
      held by Company or that otherwise relates to the Assets or to the business
      of
      Company;

    

    (iv) Breach
      any provision of, or give any Person the right to declare a default or exercise
      any remedy under, or to accelerate the maturity or performance of, or payment
      under, or to cancel, terminate or modify, any Company Contract; or

    

    (v) result
      in
      the imposition or creation of any Encumbrance upon or with respect to any of
      the
      Assets or the Shares.

    

    (c) Neither
      Company nor any of Seller is required to give any notice to or obtain any
      Consent from any Person in connection with the execution and delivery of this
      Agreement or the consummation or performance of any of the Contemplated
      Transactions.

    

    (d)
       Xinshengxiang
      is the sole record and beneficial owner of 95% of the Shares. Dingliang is
      the
      sole record and beneficial owner of 2.5% of the Shares. Yue is the sole record
      and beneficial owner of 2.5% of the Shares. Each Seller has good and marketable
      title to the Shares, free and clear of any Encumbrance. Upon the execution
      and
      delivery of this Agreement and issuance of the Consideration Shares to the
      Sellers, Buyer shall be the lawful record and beneficial owner of the Shares,
      free and clear of all Encumbrances. 
      There
      are no stockholders’ agreements, voting trust, proxies, options, rights of first
      refusal or any other Contracts, agreements or understandings with respect to
      the
      Shares.

    

    3.3
      CAPITALIZATION

    

    (a)
      Schedule
      3.3(a)
      correctly and completely sets forth: (i) the authorized capitalization of the
      Company; and (ii) the percentage of each class of registered capital stock
      of
      the Company issued and outstanding. Sellers are and will be on the Closing
      Date
      the sole shareholders of the Company. Each Seller is and will be on the Closing
      Date the record and beneficial owner of such Seller’s respective Shares, free
      and clear of all Encumbrances. The Shares constitute one hundred (100%) percent
      of the issued and outstanding shares of the registered capital stock of the
      Company. The Shares have been duly authorized and validly issued and are fully
      paid and non-assessable. Neither Seller has any obligation to the Company for
      the Shares. The Shares were issued in compliance with all Legal
      Requirements.

      
        
           

        

        
          -5-

          
            

          

        

        
           

        

      

    (b)
      There
      are no Contracts relating to the issuance, sale or transfer of any equity
      securities or other securities of Company, including any of the following:
      options, warrants, agreements, or other rights for the acquisition of shares
      of
      the Company's capital stock; securities or other obligations of the Company
      which are convertible into shares of the Company's capital stock; or sale
      agreements, shareholder agreements, pledges, proxies, voting trusts, powers
      of
      attorney, restrictions on transfer or other agreements or instruments that
      are
      binding on Seller or the Company, including without limitation, any such
      agreements or instruments that relate to the ownership, voting or transfer
      of
      any shares of the Company's capital stock. 

    

    3.4
      FINANCIAL STATEMENTS

    

    Prior
      to
      Closing, Company will have delivered to Buyer certain following financial
      statements, including an audited balance sheet of Company as at December 31,
      2006 (including the notes thereto, the "Balance Sheet"), and the related audited
      statements of income, changes in stockholders' equity, and cash flows, together
      with the report of the independent certified public accountants, and an
      unaudited balance sheet of Company as at March 31, 2007 (the "Interim Balance
      Sheet") and the related unaudited statements of income, changes in Sellers'
      equity, and cash flows for the months then ended, including in each case the
      notes thereto certified by Company's chief financial officer. Such financial
      statements fairly present (and the financial statements delivered pursuant
      to
      Section 5.8 will fairly present) the financial condition and the results of
      operations, changes in Shareholders' equity and cash flows of Company as at
      the
      respective dates of and for the periods referred to in such financial
      statements, all in accordance with GAAP. The financial statements referred
      to in
      this Section 3.4 and delivered pursuant to Section 5.8 reflect and will reflect
      the consistent application of such accounting principles throughout the periods
      involved, except as disclosed in the notes to such financial statements. The
      financial statements have been and will be prepared from and are in accordance
      with the accounting Records of Company. 

    

    3.5
      BOOKS
      AND RECORDS

    

    The
      books
      of account and other financial and other Records of Company, all of which have
      been made available to Buyer, are complete and correct and represent actual,
      bona fide transactions and have been maintained in accordance with sound
      business practices. The minute books of Company, all of which have been made
      available to Buyer, contain accurate and complete Records of all meetings held
      of, and corporate action taken by, the shareholders, the board of directors
      and
      committees of the board of directors of Company, and no meeting of any such
      shareholders, board of directors or committee has been held for which minutes
      have not been prepared or are not contained in such minute books.

    

    3.6
      TANGIBLE PERSONAL PROPERTY; SUFFICIENCY OF ASSETS

    

    (a)
       Schedule
      3.6(a)
      is a
      complete and accurate schedule describing, and specifying the location of,
      all
      Tangible Personal Property. Company owns good and marketable title to all of
      the
      Tangible Personal Property, free and clear of any Encumbrances, and none of
      the
      Tangible Personal Property is held under any lease, security agreement,
      conditional sales contract, license, or other title retention or security
      arrangement, or is located other than in the possession of
      Company.

    
      
        
           

        

        
          -6-

          
            

          

        

        
           

        

      

    

     

    (b)
       The
      Assets (i) constitute all of the assets, tangible and intangible, of any nature
      whatsoever, necessary to operate Company's business in the manner presently
      operated by Company and (ii) include all of the operating assets of
      Company.

    

    3.7
      DESCRIPTION OF OWNED REAL PROPERTY

    

    Schedule
      3.7
      contains
      a correct legal description, street address and tax parcel identification number
      of all tracts, parcels and subdivided lots in which Company has an ownership
      interest.

    

    3.8
      DESCRIPTION OF LEASED REAL PROPERTY

    

    Schedule
      3.8
      contains
      a correct legal description, street address and tax parcel identification number
      of all tracts, parcels and subdivided lots in which Company has a leasehold
      interest and an accurate description (by location, name of lessor, date of
      Lease
      and term expiry date) of all real property leases.

     

    3.9
      TITLE
      TO REAL PROPERTY

    

    Company
      owns good and marketable title to its respective estates in the Real Property,
      free and clear of any Encumbrances, other than: (i) liens for Taxes for the
      current tax year which are not yet due and payable; and (ii) those described
      in
Schedule
      3.9(a)
      ("Real
      Estate Encumbrances").True and complete copies of (A) all deeds, existing title
      insurance policies and surveys of or pertaining to the Real Property and (B)
      all
      instruments, agreements and other documents evidencing, creating or constituting
      any Real Estate Encumbrances have been delivered to Buyer. At the time of
      Closing, the Real Estate shall be free and clear of all Real Estate
      Encumbrances.

    

    3.10
      CONDITION OF FACILITIES

    

    (a) Use
      of
      the Real Property for the various purposes for which it is presently being
      used
      is permitted as of right under all applicable zoning legal requirements and
      is
      not subject to "permitted nonconforming" use or structure classifications.
      All
      Improvements are in compliance with all applicable Legal Requirements, including
      those pertaining to zoning, building and the disabled, are in good repair and
      in
      good condition, ordinary wear and tear excepted, and are free from latent and
      patent defects. No part of any Improvement encroaches on any real property
      not
      included in the Real Property, and there are no buildings, structures, fixtures
      or other Improvements primarily situated on adjoining property which encroach
      on
      any part of the Land. The Land for each owned Facility abuts on and has direct
      vehicular access to a public road or has access to a public road via a
      permanent, irrevocable, appurtenant easement benefiting such Land and comprising
      a part of the Real Property, is supplied with public or quasi-public utilities
      and other services appropriate for the operation of the Facilities located
      thereon and is not located within any flood plain or area subject to wetlands
      regulation or any similar restriction. There is no existing or proposed plan
      to
      modify or realign any street or highway or any existing or proposed eminent
      domain proceeding that would result in the taking of all or any part of any
      Facility or that would prevent or hinder the continued use of any Facility
      as
      heretofore used in the conduct of the business of Seller.

      
        
           

        

        
          -7-

          
            

          

        

        
           

        

      

    (b) Each
      item
      of Tangible Personal Property is in good repair and good operating condition,
      ordinary wear and tear excepted, is suitable for immediate use in the Ordinary
      Course of Business and is free from latent and patent defects. No item of
      Tangible Personal Property is in need of repair or replacement other than as
      part of routine maintenance in the Ordinary Course of Business. All Tangible
      Personal Property used in Company's business is in the possession of
      Company.

    

    3.11
      ACCOUNTS RECEIVABLE

    

    All
      Accounts Receivable that are reflected on the Balance Sheet or the Interim
      Balance Sheet or on the accounting Records of Company as of the Closing Date
      represent or will represent valid obligations arising from sales actually made
      or services actually performed by Company in the Ordinary Course of Business.
      Except to the extent paid prior to the Closing Date, such Accounts Receivable
      are or will be as of the Closing Date current and collectible net of the
      respective reserves shown on the Balance Sheet or the Interim Balance Sheet
      (which reserves are adequate and calculated consistent with past practice).
      Subject to such reserves, each of such Accounts Receivable either has been
      or
      will be collected in full, without any setoff, within ninety (90) days after
      the
      day on which it first becomes due and payable. There is no contest, claim,
      defense or right of setoff, other than returns in the Ordinary Course of
      Business of Company, under any Contract with any account debtor of an Account
      Receivable relating to the amount or validity of such Account Receivable.

    

    3.12
      NO
      UNDISCLOSED LIABILITIES

    

    Except
      as
      expressly disclosed herein, the Company has no Liabilities.

    

    3.13
      TAXES

    

    (a) Tax
      Returns Filed and Taxes Paid.
      Company
      has filed or caused to be filed on a timely basis all Tax Returns and all
      reports with respect to Taxes that are or were required to be filed pursuant
      to
      applicable Legal Requirements. All Tax Returns and reports filed by Company
      are
      true, correct and complete. Company has paid, or made provision for the payment
      of, all Taxes that have or may have become due for all periods covered by the
      Tax Returns or otherwise, or pursuant to any assessment received by Company,
      except such Taxes, if any, as to which adequate reserves (determined in
      accordance with GAAP) have been provided in the Balance Sheet and the Interim
      Balance Sheet. Company currently is not the beneficiary of any extension of
      time
      within which to file any Tax Return. No claim has ever been made or is expected
      to be made by any Governmental Body in a jurisdiction where Company does not
      file Tax Returns that it is or may be subject to taxation by that jurisdiction.
      There are no Encumbrances on any of the Assets that arose in connection with
      any
      failure (or alleged failure) to pay any Tax, and Company has no Knowledge of
      any
      basis for assertion of any claims attributable to Taxes which, if adversely
      determined, would result in any such Encumbrance.

    

    (b) Delivery
      of Tax Returns and Information Regarding Audits and Potential
      Audits.
      Company
      has delivered or made available to Buyer or Buyer’s representatives copies of
      all Tax Returns filed by the Company. There are no deficiencies or similar
      items
      with respect to the Tax Returns or any

    
      
        
           

        

        
          -8-

          
            

          

        

        
           

        

      

    

     

    Taxes
      paid and no dispute or claim concerning any Taxes of Company either (i) claimed
      or raised by any Governmental Body in writing or (ii) as to which Company has
      Knowledge.

    

    (c) Proper
      Accrual.
      The
      charges, accruals and reserves with respect to Taxes on the Records of Company
      are adequate (determined in accordance with GAAP) and are at least equal to
      Company's liability for Taxes. There exists no proposed tax assessment or
      deficiency against Company.

    

    (d) Specific
      Potential Tax Liabilities and Tax Situations.

    

    (i) Withholding.
      All
      Taxes that Company is or was required by Legal Requirements to withhold, deduct
      or collect have been duly withheld, deducted and collected and, to the extent
      required, have been paid to the proper Governmental Body or other
      Person.

    

    (ii) Tax
      Sharing or Similar Agreements.
      There
      is no tax sharing agreement, tax allocation agreement, tax indemnity obligation
      or similar written or unwritten agreement, arrangement, understanding or
      practice with respect to Taxes (including any advance pricing agreement, closing
      agreement or other arrangement relating to Taxes) that will require any payment
      by Company.

    

    3.14
      NO
      MATERIAL ADVERSE CHANGE

    

    Since
      the
      date of the Balance Sheet, there has not been any material adverse change in
      the
      business, operations, prospects, assets, results of operations or condition
      (financial or other) of Company, and no event has occurred or circumstance
      exists that may result in such a material adverse change. Since the date of
      the
      Balance Sheet, the Company has conducted its business only in the Ordinary
      Course of Business and there has not been any:

    

    (a) change
      in
      Company's authorized or issued capital stock, grant of any stock option or
      right
      to purchase shares of capital stock of Company or issuance of any security
      convertible into such capital stock;

    

    (b) amendment
      to the Governing Documents of Company;

    

    (c) payment
      (except in the Ordinary Course of Business) or increase by Company of any
      bonuses, salaries or other compensation to any Seller, director, officer or
      employee or entry into any employment, severance or similar Contract with any
      director, officer or employee;

    

    (d) adoption
      of, amendment to or increase in the payments to or benefits under, any Employee
      Plan;

    

    (e) damage
      to
      or destruction or loss of any Asset, whether or not covered by
      insurance;

    

    (f) entry
      into, termination of or receipt of notice of termination of (i) any license,
      distributorship, dealer, sales representative, joint venture, credit or similar
      Contract to which Company is a party, or (ii) any Contract or transaction
      involving a total remaining commitment by Company of at least
      $10,000;

    
      
        
           

        

        
          -9-

          
            

          

        

        
           

        

      

    

     

    (g) sale
      (other than sales of Inventories in the Ordinary Course of Business), lease
      or
      other disposition of any Asset or property of Company (including the
      Intellectual Property Assets) or the creation of any Encumbrance on any
      Asset;

    

    (h) cancellation
      or waiver of any claims or rights with a value to Company in excess of
      $10,000;

    

    (i) indication
      by any customer or supplier of an intention to discontinue or change the terms
      of its relationship with Company; 

    

    (j) material
      change in the accounting methods used by Company; or

    

    (k) Contract
      by Company to do any of the foregoing.

    

    3.15
      PERSONNEL MATTERS

    

    (a)
      Schedule
      3.15(a)
      sets
      forth a correct and complete list of each director, officer, employee,
      independent contractor, consultant and agent of Company, including but not
      limited to, each employee on leave of absence or layoff status. No retired
      employee, director, of officer of Company is receiving benefits or scheduled
      to
      receive benefits in the future.

    

    (b)
      The
      Company is not a party to any employment, consulting or similar agreement,
      written or oral, with any Person.

    

    (c)
      No
      employees of the Company are represented by any labor union or similar
      organization. The Company is not party to any collective bargaining or similar
      agreement covering any of its employees. No labor union or similar organization
      or group of employees has made a demand for recognition, filed a petition
      seeking a representation proceeding or given the Company notice of any intention
      to hold an election of a collective bargaining representative at any time during
      the past three years.

    

    (d) The
      Company does not, and never has had, any "employee benefit plans" as defined
      by
      Section 3(3) of the Employee Retirement Income Security Act of 1974, pension,
      retirement, bonus, profit-sharing, stock option, or other such arrangements
      providing for employee remuneration or benefits (the “Employee
      Plans”).

    

    (e)
       The
      Company has complied in all respects with all Legal Requirements relating to
      employment practices, terms and conditions of employment, equal employment
      opportunity, nondiscrimination, immigration, wages, hours, benefits, collective
      bargaining, the payment of social security and similar Taxes and occupational
      safety and health. The Company is not liable for the payment of any Taxes,
      fines, penalties, or other amounts, however designated, for failure to comply
      with any of the foregoing Legal Requirements.

    

    (f) No
      officer, director, agent, employee, consultant, or contractor of Company is
      bound by any Contract that purports to limit the ability of such officer,
      director, agent, employee, consultant, or

    
      
        
           

        

        
          -10-

          
            

          

        

        
           

        

      

    

     

    contractor
      to engage in or continue or perform any conduct, activity, duties or practice
      relating to the business of Company. No former or current employee of Company
      is
      a party to, or is otherwise bound by, any Contract that in any way adversely
      affected, affects, or will affect the ability of Company or Buyer to conduct
      the
      business as heretofore carried on by Company.

    

    3.16
      COMPLIANCE WITH LEGAL REQUIREMENTS; GOVERNMENTAL AUTHORIZATIONS

    

    (a) Company
      is, and at all times has been, in full compliance with each Legal Requirement
      that is or was applicable to it or to the conduct or operation of its business
      or the ownership or use of any of its Assets. No event has occurred or
      circumstance exists that (with or without notice or lapse of time) may
      constitute or result in a violation by Company of, or a failure on the part of
      Company to comply with, any Legal Requirement or may give rise to any obligation
      on the part of Company to undertake, or to bear all or any portion of the cost
      of, any remedial action of any nature. Company has not received any notice
      or
      other communication (whether oral or written) from any Governmental Body or
      any
      other Person regarding any actual, alleged, possible or potential violation
      of,
      or failure to comply with, any Legal Requirement or any actual, alleged,
      possible or potential obligation on the part of Company to undertake, or to
      bear
      all or any portion of the cost of, any remedial action of any
      nature.

    

    (b) Schedule
      3.16(b) contains a complete and accurate list of each Governmental Authorization
      that is held by Company or that otherwise relates to Company's business or
      the
      Assets. Each Governmental Authorization listed or required to be listed in
      Schedule 3.16(b) is valid and in full force and effect. Except as set forth
      in
      Schedule 3.16(b):

    

    (i) Company
      is, and has been, in full compliance with all of the terms and requirements
      of
      each Governmental Authorization identified or required to be identified in
      Schedule 3.16(b);

    

    (ii) no
      event
      has occurred or circumstance exists that may (with or without notice or lapse
      of
      time) (A) constitute or result directly or indirectly in a violation of or
      a
      failure to comply with any term or requirement of any Governmental Authorization
      listed or required to be listed in Schedule 3.16(b) or (B) result directly
      or
      indirectly in the revocation, withdrawal, suspension, cancellation or
      termination of, or any modification to, any Governmental Authorization listed
      or
      required to be listed in Schedule 3.16(b);

    

    (iii) Company
      has not received any notice or other communication (whether oral or written)
      from any Governmental Body or any other Person regarding (A) any actual,
      alleged, possible or potential violation of or failure to comply with any term
      or requirement of any Governmental Authorization or (B) any actual, proposed,
      possible or potential revocation, withdrawal, suspension, cancellation,
      termination of or modification to any Governmental Authorization;
      and

    

    (iv) all
      applications required to have been filed for the renewal of the Governmental
      Authorizations listed or required to be listed in Schedule 3.16(b) have been
      duly filed on a timely basis with the appropriate Governmental Bodies, and
      all
      other filings required to have been made

    
      
        
           

        

        
          -11-

          
            

          

        

        
           

        

      

    

     

    with
      respect to such Governmental Authorizations have been duly made on a timely
      basis with the appropriate Governmental Bodies.

    

    (v) The
      Governmental Authorizations listed in Schedule 3.16(b) collectively constitute
      all of the Governmental Authorizations necessary to permit Company to lawfully
      conduct and operate its business in the manner in which it currently conducts
      and operates such business and to permit Company to own and use its Assets
      in
      the manner in which it currently owns and uses such Assets.

    

    3.17
      LEGAL PROCEEDINGS; ORDERS

    

    (a) There
      is
      no pending or threatened Proceeding: (i) by or against Company or that otherwise
      relates to or may affect the business of, or any of the Assets owned or used
      by,
      Company; or (ii) that challenges, or that may have the effect of preventing,
      delaying, making illegal or otherwise interfering with, any of the Contemplated
      Transactions. To the Knowledge of Company or any Seller, no event has occurred
      or circumstance exists that is reasonably likely to give rise to or serve as
      a
      basis for the commencement of any such Proceeding. 

    

    (b) There
      is
      no Order to which Company, its business or any of the Assets is subject. To
      the
      Knowledge of Company or any Seller, no officer, director, agent or employee
      of
      Company is subject to any Order that prohibits such officer, director, agent
      or
      employee from engaging in or continuing any conduct, activity or practice
      relating to the business of Company.

    

    (c) Company
      is and has at all times been in compliance with all of the terms and
      requirements of each Order to which it or any of the Assets is or has been
      subject. No event has occurred or circumstance exists that is reasonably likely
      to constitute or result in (with or without notice or lapse of time) a violation
      of or failure to comply with any term or requirement of any Order to which
      Company or any of the Assets is subject; and

    

    (d) Company
      has not received any notice or other communication (whether oral or written)
      from any Governmental Body or any other Person regarding any actual, alleged,
      possible or potential violation of, or failure to comply with, any term or
      requirement of any Order to which Company or any of the Assets is or has been
      subject.

    

    3.18
      CONTRACTS; NO DEFAULTS

    

    (a) Schedule
      3.18(a)
      contains
      an accurate and complete list, and Company has delivered to Buyer, accurate
      and
      complete copies of each Company Contract. Schedule
      3.18(a)
      sets
      forth reasonably complete details concerning such Contracts, including
the
      parties to the Contracts and the amount of the remaining commitment of Company
      under the Contracts.

    

    (b) Seller
      has not and may not acquire any rights under, and Seller has not or may not
      become subject to any obligation or liability under, any Contract that relates
      to the business of Company or any of the Assets.

    
      
        
           

        

        
          -12-

          
            

          

        

        
           

        

      

    

     

    (c) (i)
      each
      Contract identified or required to be identified in Schedule
      3.18(a)
      is in
      full force and effect and is valid and enforceable in accordance with its terms;
      (ii) to the Knowledge of Company or any Seller, no Contract identified or
      required to be identified in Schedule
      3.18(a)
      will
      upon completion or performance thereof have a material adverse affect on the
      business, assets or condition of Company or the business to be conducted by
      Buyer with the Assets.

    

    (d) (i)
      Company is, and at all times has been, in compliance with all applicable terms
      and requirements of each Company Contract which is being assumed by Buyer;
      (ii)
      each other Person that has or had any obligation or liability under any Company
      Contract is, and at all times has been, in full compliance with all applicable
      terms and requirements of such Contract;  (iii)
      no
      event has occurred or circumstance exists that (with or without notice or lapse
      of time) may contravene, conflict with or result in a Breach of, or give Company
      or other Person the right to declare a default or exercise any remedy under,
      or
      to accelerate the maturity or performance of, or payment under, or to cancel,
      terminate or modify, any Company Contract that is being assigned to or assumed
      by Buyer; (iv)
      no
      event has occurred or circumstance exists under or by virtue of any Contract
      that (with or without notice or lapse of time) would cause the creation of
      any
      Encumbrance affecting any of the Assets; and (v) Company has not given to or
      received from any other Person any notice or other communication (whether oral
      or written) regarding any actual, alleged, possible or potential violation
      or
      Breach of, or default under, any Contract which is being assigned to or assumed
      by Buyer.

    

    (e) There
      are
      no renegotiations of, attempts to renegotiate or outstanding rights to
      renegotiate any material amounts paid or payable to Company under current or
      completed Contracts with any Person having the contractual or statutory right
      to
      demand or require such renegotiation and no such Person has made written demand
      for such renegotiation.

    

    (f) Each
      Contract relating to the sale, design, manufacture or provision of products
      or
      services by Company has been entered into in the Ordinary Course of Business
      of
      Company and has been entered into without the commission of any act alone or
      in
      concert with any other Person, or any consideration having been paid or
      promised, that is or would be in violation of any Legal
      Requirement.

    

    3.19
      INSURANCE

    

    (a) Company
      has delivered to Buyer accurate and complete copies of all policies of insurance
      (and correspondence relating to coverage thereunder) to which Company is a
      party.

    

    (b) Schedule
      3.19(b)
      describes all obligations of Company to provide insurance coverage to Third
      Parties (for example, under Leases or service agreements) and identifies the
      policy under which such coverage is provided.

    

    (c) All
      policies of insurance to which Company is a party or that provide coverage
      to
      Company: (i) are valid, outstanding and enforceable; (ii) are issued by an
      insurer that is financially sound and reputable; (iii) taken together, provide
      adequate insurance coverage for the Assets and the operations of Company for
      all
      risks normally insured against by a Person carrying on the same business or
      businesses as Company in the same location or locations and for all risks to
      which

    
      
        
           

        

        
          -13-

          
            

          

        

        
           

        

      

    

     

    Company
      is normally subject; and (iv) are sufficient for compliance with all Legal
      Requirements and Company Contracts;

    

    (d)
       Company
      has not received (i) any refusal of coverage or any notice that a defense will
      be afforded with reservation of rights or (ii) any notice of cancellation or
      any
      other indication that any policy of insurance is no longer in full force or
      effect or that the issuer of any policy of insurance is not willing or able
      to
      perform its obligations thereunder. Company has paid all insurance premiums
      as,
      and when due, and has otherwise performed all of its obligations under each
      policy of insurance to which it is a party or that lists Company as a
      beneficiary. Company has given notice to all insurers of any claims that may
      be
      submitted under said policies of insurance.

    

    3.20
      ENVIRONMENTAL MATTERS

    

    (a) Company
      is, and at all times has been, in full compliance with, and has not been and
      is
      not in violation of or liable under, any Environmental Law. None of Company
      nor
      any Seller has any basis to expect, nor has any of them or any other Person
      for
      whose conduct they are or may be held to be responsible received, any actual
      or
      threatened order, notice or other communication from (i) any Governmental Body
      or private citizen acting in the public interest or (ii) the current or prior
      owner or operator of any Facilities, of any actual or potential violation or
      failure to comply with any Environmental Law, or of any actual or threatened
      obligation to undertake or bear the cost of any Environmental, Health and Safety
      Liabilities with respect to any Facility or other property or asset (whether
      real, personal or mixed) in which Company has or had an interest, or with
      respect to any property or Facility at or to which Hazardous Materials were
      generated, manufactured, refined, transferred, imported, used or processed
      by
      Company or any other Person for whose conduct it is or may be held responsible,
      or from which Hazardous Materials have been transported, treated, stored,
      handled, transferred, disposed, recycled or received.

    

    (b) There
      are
      no pending or, to the Knowledge of Company or any Seller, threatened claims,
      Encumbrances, or other restrictions of any nature resulting from any
      Environmental, Health and Safety Liabilities or arising under or pursuant to
      any
      Environmental Law with respect to or affecting any Facility or any other
      property or asset (whether real, personal or mixed) in which Company has or
      had
      an interest.

    

    (c) None
      of
      Company nor any Seller has any Knowledge of or any basis to expect, nor has
      any
      of them, or any other Person for whose conduct they are or may be held
      responsible, received, any citation, directive, inquiry, notice, Order, summons,
      warning or other communication that relates to Hazardous Activity, Hazardous
      Materials, or any alleged, actual, or potential violation or failure to comply
      with any Environmental Law, or of any alleged, actual, or potential obligation
      to undertake or bear the cost of any Environmental, Health and Safety
      Liabilities with respect to any Facility or property or asset (whether real,
      personal or mixed) in which Company has or had an interest, or with respect
      to
      any property or facility to which Hazardous Materials generated, manufactured,
      refined, transferred, imported, used or processed by Company or any other Person
      for whose conduct it is or may be held responsible, have been transported,
      treated, stored, handled, transferred, disposed, recycled or
      received.

    
      
        
           

        

        
          -14-

          
            

          

        

        
           

        

      

    

     

    (d) Neither
      Company nor any other Person for whose conduct it is or may be held responsible
      has any Environmental, Health and Safety Liabilities with respect to any
      Facility or, to the Knowledge of Company, with respect to any other property
      or
      asset (whether real, personal or mixed) in which Company (or any predecessor)
      has or had an interest or at any property geologically or hydrologically
      adjoining any Facility or any such other property or asset.

    

    (e) There
      are
      no Hazardous Materials present on or in the Environment at any Facility or
      at
      any geologically or hydrologically adjoining property, including any Hazardous
      Materials contained in barrels, aboveground or underground storage tanks,
      landfills, land deposits, dumps, equipment (whether movable or fixed) or other
      containers, either temporary or permanent, and deposited or located in land,
      water, sumps, or any other part of the Facility or such adjoining property,
      or
      incorporated into any structure therein or thereon. Neither Company nor any
      Person for whose conduct it is or may be held responsible, or to the Knowledge
      of Company, any other Person, has permitted or conducted, or is aware of, any
      Hazardous Activity conducted with respect to any Facility or any other property
      or assets (whether real, personal or mixed) in which Company has or had an
      interest except in full compliance with all applicable Environmental
      Laws.

    

    (f) There
      has
      been no Release or, to the Knowledge of Company, Threat of Release, of any
      Hazardous Materials at or from any Facility or at any other location where
      any
      Hazardous Materials were generated, manufactured, refined, transferred,
      produced, imported, used, or processed from or by any Facility, or from any
      other property or asset (whether real, personal or mixed) in which Company
      has
      or had an interest, or to the Knowledge of Company any geologically or
      hydrologically adjoining property, whether by Company or any other
      Person.

    

    (g) Company
      has delivered to Buyer true and complete copies and results of any reports,
      studies, analyses, tests, or monitoring possessed or initiated by Company
      pertaining to Hazardous Materials or Hazardous Activities in, on, or under
      the
      Facilities, or concerning compliance, by Company or any other Person for whose
      conduct it is or may be held responsible, with Environmental Laws.

     

    3.21
      INTELLECTUAL PROPERTY ASSETS

    

    (a) The
      term
      "Intellectual Property Assets" means all intellectual property owned or licensed
      (as licensor or licensee) by Company in which Company has a proprietary
      interest, including: (i) Company's name, all assumed fictional business names,
      trade names, registered and unregistered trademarks, service marks and
      applications (collectively, "Marks"); (ii) all patents, patent applications
      and
      inventions and discoveries that may be patentable (collectively, "Patents");
      (iii) all registered and unregistered copyrights in both published works and
      unpublished works (collectively, "Copyrights"); (iv) all rights in mask works;
      (v) all know-how, trade secrets, confidential or proprietary information,
      customer lists, Software, technical information, data, process technology,
      plans, drawings and blue prints (collectively, "Trade Secrets"); and (vi) all
      rights in internet web sites and internet domain names presently used by Company
      (collectively "Net Names").

    
      
        
           

        

        
          -15-

          
            

          

        

        
           

        

      

    

     

    (b) Schedule
      3.21(b)
      contains
      a complete and accurate list and summary description, including any royalties
      paid or received by Company, and Company has delivered to Buyer accurate and
      complete copies, of all Company Contracts relating to the Intellectual Property
      Assets. There are no outstanding and no threatened disputes or disagreements
      with respect to any such Contract.

    

    (c)
      The
      Intellectual Property Assets are all those necessary for the operation of
      Company's business as it is currently conducted. Company is the owner or
      licensee of all right, title and interest in and to each of the Intellectual
      Property Assets, free and clear of all Encumbrances, and has the right to use
      without payment to a Third Party all of the Intellectual Property Assets, other
      than in respect of licenses listed in Schedule
      3.21(c).

    

    (d)
      All
      former and current employees of Company have executed written Contracts with
      Company that assign to Company all rights to any inventions, improvements,
      discoveries or information relating to the business of Company.

    

    (e)
      Schedule
      3.21(e)
      contains
      a complete and accurate list and summary description of all Patents. All of
      the
      issued Patents are currently in compliance with formal legal requirements
      (including payment of filing, examination and maintenance fees and proofs of
      working or use), are valid and enforceable, and are not subject to any
      maintenance fees or taxes or actions falling due within ninety (90) days after
      the Closing Date. No Patent has been or is now involved in any interference,
      reissue, reexamination, or opposition Proceeding. There is no potentially
      interfering patent or patent application of any Third Party.

    

    (f) Except
      as
      set forth in Schedule
      3.21(e),
      (A) no
      Patent is infringed or, to the Knowledge of Company or any Seller, has been
      challenged or threatened in any way and (B) none of the products manufactured
      or
      sold, nor any process or know-how used, by Company infringes or is alleged
      to
      infringe any patent or other proprietary right of any other Person.

    

    (g) All
      products made, used or sold under the Patents have been marked with the proper
      patent notice.

    

    (h) Schedule
      3.21(h)
      contains
      a complete and accurate list and summary description of all Marks. All Marks
      are
      currently in compliance with all formal Legal Requirements (including the timely
      post-registration filing of affidavits of use and incontestability and renewal
      applications), are valid and enforceable and are not subject to any maintenance
      fees or taxes or actions falling due within ninety (90) days after the Closing
      Date. No Mark has been or is now involved in any opposition, invalidation or
      cancellation Proceeding and, to the Knowledge of Company or any Seller, no
      such
      action is threatened with respect to any of the Marks. To the Knowledge of
      Company or any Seller, there is no potentially interfering trademark or
      trademark application of any other Person. No Mark is infringed or, to Company's
      Knowledge, has been challenged or threatened in any way. None of the Marks
      used
      by Company infringes or is alleged to infringe any trade name, trademark or
      service mark of any other Person. All products and materials containing a Mark
      bear the proper federal registration notice where permitted by law.

      
        
           

        

        
          -16-

          
            

          

        

        
           

        

      

    (i)
      Schedule
      3.21(i)
      contains
      a complete and accurate list and summary description of all Copyrights. All
      of
      the registered Copyrights are currently in compliance with formal Legal
      Requirements, are valid and enforceable, and are not subject to any maintenance
      fees or taxes or actions falling due within ninety (90) days after the date
      of
      Closing. No Copyright is infringed or, to the Knowledge of Company or any
      Seller, has been challenged or threatened in any way. None of the subject matter
      of any of the Copyrights infringes or is alleged to infringe any copyright
      of
      any Third Party or is a derivative work based upon the work of any other Person.
      All works encompassed by the Copyrights have been marked with the proper
      copyright notice.

    

    (j) With
      respect to each Trade Secret, the documentation relating to such Trade Secret
      is
      current, accurate and sufficient in detail and content to identify and explain
      it and to allow its full and proper use without reliance on the knowledge or
      memory of any individual. Company has taken all reasonable precautions to
      protect the secrecy, confidentiality and value of all Trade Secrets (including
      the enforcement by Company of a policy requiring each employee or contractor
      to
      execute proprietary information and confidentiality agreements substantially
      in
      Company's standard form, and all current and former employees and contractors
      of
      Company have executed such an agreement). Company has good title to and an
      absolute right to use the Trade Secrets. The Trade Secrets are not part of
      the
      public knowledge or literature and, to the Knowledge of Company or any Seller,
      have not been used, divulged or appropriated either for the benefit of any
      Person (other than Company) or to the detriment of Company. No Trade Secret
      is
      subject to any adverse claim or has been challenged or threatened in any way
      or
      infringes any intellectual property right of any other Person.

    

    (k)
       Schedule
      3.21(k)
      contains
      a complete and accurate list and summary description of all Net Names.

    

    3.22
      RELATIONSHIPS WITH RELATED PERSONS

    

    Except
      as
      disclosed in Schedule
      3.22,
      neither
      Company nor any of Seller nor any Related Person of any of them has any interest
      in any property (whether real, personal or mixed and whether tangible or
      intangible) used in or pertaining to Company's business. Neither Company nor
      any
      of Seller nor any Related Person of any of them owns, or since January 1, 2005,
      has owned, of record or as a beneficial owner, an equity interest or any other
      financial or profit interest in any Person that has (a) had business dealings
      or
      a material financial interest in any transaction with Company other than
      business dealings or transactions disclosed in Schedule
      3.22,
      each of
      which has been conducted in the Ordinary Course of Business with Company at
      substantially prevailing market prices and on substantially prevailing market
      terms or (b) engaged in competition with Company with respect to any line of
      the
      products or services of Company (a "Competing Business") in any market presently
      served by Company, except for ownership of less than one percent (1%) of the
      outstanding capital stock of any Competing Business that is publicly traded
      on
      any recognized exchange or in the over-the-counter market. Except as set forth
      in Schedule
      3.22,
      neither
      Company nor any of Seller nor any Related Person of any of them is a party
      to
      any Contract with, or has any claim or right against, Company.

    
      
         

      

      
        -17-

        
          

        

      

      
         

      

    

     

    3.23
      BROKERS OR FINDERS

     

    None
      of
      Company, any of Seller, nor any of its Representatives have incurred any
      obligation or liability, contingent or otherwise, for brokerage or finders'
      fees
      or agents' commissions or other similar payments in connection with the sale
      of
      the Shares or the Company's business or the Assets or the Contemplated
      Transactions.

    

    3.24
      SECURITIES LAW MATTERS

    

    (a) Each
      Seller understands that the Consideration Shares are being offered and made
      in
      reliance on Regulation S promulgated under the Securities Act, or one or more
      exemptions from the registration requirements of United States federal and
      state
      securities laws and that the Buyer is relying upon the truth and accuracy of
      the
      representations, warranties, agreements, acknowledgments and understandings
      of
      the Sellers set forth herein in order to determine the applicability of such
      exemptions and the suitability of the Sellers to acquire the Consideration
      Shares. 

    

    (b)
       Each
      Seller represents, warrants and agrees that:

    

    (1)
       Seller
      is
      not a U.S. Person (as defined below) and is not an affiliate (as defined in
      Rule
      501(b) under the Securities Act) of the Company and is not acquiring the Shares
      for the account or benefit of a U.S. Person. A U.S. Person means any one of
      the
      following:

    

    (A)         
      any
      natural person resident in the United States of America;

    

    (B)         
      any
      partnership or corporation organized or incorporated under the laws of the
      United States of America;

    

    
      	 	 	
              (C)

            	
              any
                estate of which any executor or administrator is a U.S.
                person;

            

    

    

    
      	 	 	
              (D)

            	
              any
                trust of which any trustee is a U.S.
                person;

            

    

    

    (E)          
      any
      agency or branch of a foreign entity located in the United States of
      America;

    

    (F)         
      any
      non-discretionary account or similar account (other than an estate or trust)
      held by a dealer or other fiduciary for the benefit or account of a U.S.
      person;

    

    (G)         
      any
      discretionary account or similar account (other than an estate or trust) held
      by
      a dealer or other fiduciary organized, incorporated or (if an individual)
      resident in the United States of America; and

    

    
      	 	 	
              (H)

            	
              any
                partnership or corporation if:

            

    

    

    (i)
      organized or incorporated under the laws of any foreign jurisdiction;
      and

    

    (ii)
       formed
      by
      a U.S. person principally for the purpose of investing in securities not
      registered under the Securities Act, unless it is organized or incorporated,
      and
      owned,

    
      
        
           

        

        
          -18-

          
            

          

        

        
           

        

      

    

     

    by
      accredited investors (as
      defined in Rule 501(a) under the Securities Act) who are not natural persons,
      estates or trusts.

    

    (2)
       At
      the
      time of the origination of contact concerning this Agreement and the date of
      the
      execution and delivery of this Agreement, Seller was outside of the United
      States.

    

    (3) Seller
      will not, during the period commencing on the date of issuance of the Shares
      and
      ending on the first anniversary of such date, or such shorter period as may
      be
      permitted by Regulation S or other applicable securities law (the “Restricted
      Period”), offer, sell, pledge or otherwise transfer the Shares in the United
      States, or to a U.S. Person for the account or for the benefit of a U.S. Person,
      or otherwise in a manner that is not in compliance with Regulation S.

    

    (4) Seller
      will, after expiration of the Restricted Period, offer, sell, pledge or
      otherwise transfer the Shares only pursuant to registration under the Securities
      Act or an available exemption therefrom and, in accordance with all applicable
      state and foreign securities laws.

    

    (5) Seller
      was not in the United States, engaged in, and prior to the expiration of the
      Restricted Period will not engage in, any short selling of or any hedging
      transaction with respect to the Shares, including without limitation, any put,
      call or other option transaction, option writing or equity swap.

    

    (6) Neither
      Seller nor or any person acting on his behalf has engaged, nor will engage,
      in
      any directed selling efforts to a U.S. Person with respect to the Shares and
      Seller and any person acting on his behalf have complied and will comply with
      the “offering restrictions” requirements of Regulation S under the Securities
      Act.

    

    (7) The
      transactions contemplated by this Agreement have not been pre-arranged with
      a
      purchaser located in the United States or with a U.S. Person, and are not part
      of a plan or scheme to evade the registration requirements of the Securities
      Act.

    

    (8) Neither
      Seller nor any person acting on his behalf has undertaken or carried out any
      activity for the purpose of, or that could reasonably be expected to have the
      effect of, conditioning the market in the United States, its territories or
      possessions, for any of the Shares. Seller agrees not to cause any advertisement
      of the Shares to be published in any newspaper or periodical or posted in any
      public place and not to issue any circular relating to the Shares, except such
      advertisements that include the statements required by Regulation S under the
      Securities Act, and only offshore and not in the U.S. or its territories, and
      only in compliance with any local applicable securities laws.

    

    (c)
       Each
      Seller is acquiring the Consideration Shares for Seller’s own account and not
      with a view to its distribution within the meaning of Section 2(11) of the
      Securities Act. Each Seller is an “accredited investor” (as that term is defined
      in Rule 501 of the General Rules and Regulations under the Securities Act,
      and
      each Seller is (i) experienced in making investments of the kind described
      in
      this Agreement and the related documents, (ii) able, by reason of the business
      and financial experience of its officers (if an entity) and professional
      advisors (who are not affiliated with or compensated in any way by Buyer or
      any
      of its affiliates or selling agents), to protect its

      
        
           

        

        
          -19-

          
            

          

        

        
           

        

      

    own
      interests in connection with the transactions described in this Agreement,
      and
      the related documents, and (iii) able to afford the entire loss of the
      investment in the Consideration Shares. Each Seller has been provided an
      opportunity for a reasonable period of time prior to the date hereof to obtain
      additional information concerning the Consideration Shares, the Buyer and all
      other information to the extent the Buyer possesses such information or can
      acquire it without unreasonable effort or expense.

    

    (d)
       Each
      Seller understands that the Consideration Shares shall be “restricted” (as that
      term is defined in Rule 144 promulgated under the Securities Act), and each
      certificate representing the Consideration Shares shall be endorsed with one
      or
      more of the following restrictive legends, in addition to any other legend
      required to be placed thereon by applicable federal or state securities
      laws:

    

    “THE
      SECURITIES ARE BEING OFFERED TO INVESTORS WHO ARE NOT U.S. PERSONS (AS DEFINED
      IN REGULATION S UNDER THE SECURITIES ACT OF 1933, AS AMENDED (“THE SECURITIES
      ACT”)) AND WITHOUT REGISTRATION WITH THE UNITED STATES SECURITIES AND EXCHANGE
      COMMISSION UNDER THE SECURITIES ACT IN RELIANCE UPON REGULATION S PROMULGATED
      UNDER THE SECURITIES ACT. TRANSFER OF THESE SECURITIES IS PROHIBITED, EXCEPT
      IN
      ACCORDANCE WITH THE PROVISIONS OF REGULATION S, PURSUANT TO REGISTRATION UNDER
      THE SECURITIES ACT, OR PURSUANT TO AVAILABLE EXEMPTION FROM REGISTRATION.
      HEDGING TRANSACTIONS MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE
      SECURITIES ACT.”

    

    3.25
      DISCLOSURE

    

    (a) No
      representation or warranty or other statement made by Company or any of Seller
      in this Agreement, the Schedules, any supplement to the Schedules, the
      certificates delivered pursuant to Section 2.3(a) or otherwise in connection
      with the Contemplated Transactions contains any untrue statement or omits to
      state a material fact necessary to make any of them, in light of the
      circumstances in which it was made, not misleading.

    

    (b) None
      of
      any of Seller nor the Company has Knowledge of any fact that has specific
      application to Company (other than general economic or industry conditions)
      or
      the Shares and that may materially adversely affect the Shares or the assets,
      business, prospects, financial condition or results of operations of Company
      that has not been set forth in this Agreement. There does not now exist any
      event, condition, or other matter, or any series of events, conditions or other
      matters, individually or in the aggregate, adversely affecting the Shares or
      the
      Company's assets, business, prospects, financial condition or results of its
      operations that has not been specifically disclosed to Buyer in writing by
      Company.

      
        
           

        

        
          -20-

          
            

          

        

        
           

        

      

    ARTICLE
      IV

    REPRESENTATIONS
      AND WARRANTIES OF BUYER

    

    Buyer
      represents and warrants to Company and Sellers, as of the date hereof and as
      of
      the Closing Date, as follows:

    

    4.1
      ORGANIZATION AND GOOD STANDING

    

    Buyer
      is
      a corporation duly organized, validly existing and in good standing under the
      laws of the State of Nevada, with full corporate power and authority to conduct
      its business as it is now conducted.

    

    4.2
      AUTHORITY; NO CONFLICT

    

    (a) This
      Agreement constitutes the legal, valid and binding obligation of Buyer,
      enforceable against Buyer in accordance with its terms. Upon the execution
      and
      delivery by Buyer of the other agreements to be executed or delivered by Buyer
      at Closing (collectively, the "Buyer's Closing Documents"), each of the Buyer's
      Closing Documents will constitute the legal, valid and binding obligation of
      Buyer, enforceable against Buyer in accordance with its respective terms. Buyer
      has the absolute and unrestricted right, power and authority to execute and
      deliver this Agreement and the Buyer's Closing Documents and to perform its
      obligations under this Agreement and the Buyer's Closing Documents, and such
      action has been duly authorized by all necessary corporate action.

    

    (b) Neither
      the execution and delivery of this Agreement by Buyer nor the consummation
      or
      performance of any of the Contemplated Transactions by Buyer will give any
      Person the right to prevent, delay or otherwise interfere with any of the
      Contemplated Transactions pursuant to: (i)any provision of Buyer's Governing
      Documents; (ii) any resolution adopted by the board of directors of Buyer;
      (iii)
      any Legal Requirement or Order to which Buyer may be subject; or (iv) any
      Contract to which Buyer is a party or by which Buyer may be bound. Buyer is
      not
      and will not be required to obtain any Consent from any Person in connection
      with the execution and delivery of this Agreement or the consummation or
      performance of any of the Contemplated Transactions.

    

    4.3 FILINGS
      WITH THE SEC

    

    To
      the
      best of Company's knowledge, the Company has not provided to Seller any
      information that, according to applicable law, rule or regulation, should have
      been disclosed publicly prior to the date hereof by the Company, but which
      has
      not been so disclosed. As of their respective dates, the documents filed by
      the
      Company with the SEC (the “SEC Documents”) complied in all material respects
      with the requirements of the Securities Act of or the Exchange Act, as the
      case
      may be, and other federal, state and local laws, rules and regulations
      applicable to such SEC Documents, and none of the SEC Documents contained any
      untrue statement of a material fact or omitted to state a material fact required
      to be stated therein or necessary in order to make the statements therein,
      in
      light of the circumstances under which they were made, not misleading. The
      financial statements of the Company included in the SEC Documents comply as
      to
      form and substance in all material respects with applicable accounting
      requirements and the published rules and regulations

    
      
        
           

        

        
          -21-

          
            

          

        

        
           

        

      

    

     

    of
      the
      SEC or other applicable rules and regulations with respect thereto. Such
      financial statements have been prepared in accordance with generally accepted
      accounting principles applied on a consistent basis during the periods involved
      (except (a) as may be otherwise indicated in such financial statements or the
      notes thereto or (b) in the case of unaudited interim statements, to the extent
      they may not include footnotes or may be condensed or summary statements) and
      fairly present in all material respects the financial position of the Company
      as
      of the dates thereof and the results of operations and cash flows for the
      periods then ended (subject, in the case of unaudited statements, to normal
      year-end audit adjustments).

    

    4.4 VALID
      ISSUANCE

    

    The
      issuance of the Consideration Shares, in accordance with the terms and on the
      bases of the representations and warranties of the Seller set forth herein,
      may
      and shall be properly issued by the Company to Seller pursuant to applicable
      federal law. When issued and paid for as herein provided, the Consideration
      Shares shall be duly and validly issued, fully paid, and
      nonassessable.

    

    4.5
      CERTAIN PROCEEDINGS

    

    There
      is
      no pending Proceeding that has been commenced against Buyer and that challenges,
      or may have the effect of preventing, delaying, making illegal or otherwise
      interfering with, any of the Contemplated Transactions. To Buyer's Knowledge,
      no
      such Proceeding has been threatened.

    

    4.6
      BROKERS OR FINDERS

    

    Neither
      Buyer nor any of its Representatives have incurred any obligation or liability,
      contingent or otherwise, for brokerage or finders' fees or agents' commissions
      or other similar payment in connection with the Contemplated
      Transactions.

     

    ARITCLE
      V

    COVENANTS
      PRIOR TO CLOSING

    

    5.1
      ACCESS AND INVESTIGATION

    

    Between
      the date of this Agreement and the Closing Date, and upon reasonable advance
      notice, Sellers and Company, on the one hand, and Buyer on the other hand,
      shall
      (a) afford the other party and its Representatives and prospective lenders
      and
      their Representatives full and free access, during regular business hours,
      to
      its personnel, properties, Contracts, Governmental Authorizations, books and
      Records and other documents and data, such rights of access to be exercised
      in a
      manner that does not unreasonably interfere with its operations; (b) furnish
      the
      other party with copies of all such Contracts, Governmental Authorizations,
      books and Records and other existing documents and data as the other party
      may
      reasonably request; (c) furnish the other party with such additional financial,
      operating and other relevant data and information as the other party may
      reasonably request; and (d) otherwise cooperate and assist, to the extent
      reasonably requested by the other party, with the other party's investigation
      of
      the properties, assets and financial condition related to it. In addition,
      the
      other party shall have the right to have the real property and Tangible
      Personal

    
      
        
           

        

        
          -22-

          
            

          

        

        
           

        

      

    

     

    Property
      inspected by it, at the other party's sole cost and expense, for purposes of
      determining the physical condition and legal characteristics of the real
      property and Tangible Personal Property.

    

    5.2
      OPERATION OF THE BUSINESS AND CONDUCT OF SELLERS PRIOR TO CLOSING

    

    (a)
      Between the date of this Agreement and the Closing, Company shall (and Sellers
      shall cause Company to):

    

    (i) conduct
      its business only in the Ordinary Course of Business;

    

    (ii) except
      as
      otherwise directed by Buyer in writing, and without making any commitment on
      Buyer's behalf, use its Best Efforts to preserve intact its current business
      organization, keep available the services of its officers, employees and agents
      and maintain its relations and good will with suppliers, customers, landlords,
      creditors, employees, agents and others having business relationships with
      it;

    

    (iii) confer
      with Buyer prior to implementing operational decisions of a material
      nature;

    

    (iv) otherwise
      report periodically to Buyer concerning the status of its business, operations
      and finances;

    

    (v) make
      no
      material changes in management personnel without prior consultation with
      Buyer;

    

    (vi) maintain
      the Assets in a state of repair and condition that complies with Legal
      Requirements and is consistent with the requirements and normal conduct of
      Company's business;

    

    (vii) keep
      in
      full force and effect, without amendment, all material rights relating to
      Company's business;

    

    (viii) comply
      with all Legal Requirements and contractual obligations applicable to the
      operations of Company's business;

    

    (ix) continue
      in full force and effect the insurance coverage under the policies set forth
      in
      Schedule 3.19 or substantially equivalent policies;

    

    (x) cooperate
      with Buyer and assist Buyer in identifying the Governmental Authorizations
      required by Buyer to operate the business from and after the Closing Date and
      either transferring existing Governmental Authorizations of Company to Buyer,
      where permissible, or obtaining new Governmental Authorizations for
      Buyer;

    

    (xi) upon
      request from time to time, execute and deliver all documents, make all truthful
      oaths, testify in any Proceedings and do all other acts that may be reasonably
      necessary or desirable in the opinion of Buyer to consummate the Contemplated
      Transactions, all without further consideration; and

      
        
           

        

        
          -23-

          
            

          

        

        
           

        

      

    (xii) maintain
      all books and Records of Company relating to Company's business in the Ordinary
      Course of Business.

    

    (b)
       Between
      the date of this Agreement and the Closing, each Seller shall:

    

    (i)
      not
      sell, transfer or otherwise dispose of any of the Shares or any interest in
      the
      Shares and not agree to do any of the foregoing;

    

    (ii)
      not
      accept any dividend or other distribution in respect of any of the
      Shares;

    

    (iii)
      not
      incur, make, assume or suffer to exist any Encumbrance or other matter affecting
      title to any of the Shares;

    

    (iv)
      not
      enter into any shareholder agreements, voting trusts, restrictions on transfer
      or other agreements or instruments that would be binding on the Buyer as the
      owner of the Shares; and

    

    (v)
      take
      no action, and use their best efforts to prevent the occurrence of any event
      or
      the existence of any condition, that would result in any of the Seller’s
      representations and warranties in this Agreement not being true and
      correct.

    

    5.3
      NEGATIVE COVENANT

    

    Except
      as
      otherwise expressly permitted herein, between the date of this Agreement and
      the
      Closing Date, Company shall not, and Seller shall not permit Company to, without
      the prior written Consent of Buyer, (a) take any affirmative action, or fail
      to
      take any reasonable action within its control, as a result of which any of
      the
      changes or events listed in Section 3.14 would be likely to occur; (b) make
      any
      modification to any material Contract or Governmental Authorization; (c) allow
      the levels of raw materials, supplies or other materials included in the
      Inventories to vary materially from the levels customarily maintained; or (d)
      enter into any compromise or settlement of any litigation, proceeding or
      governmental investigation relating to Company, its Assets, or its
      business.

    

    5.4
      REQUIRED APPROVALS

    

    As
      promptly as practicable after the date of this Agreement, Company shall make
      all
      filings required by Legal Requirements to be made by it in order to consummate
      the Contemplated Transactions. Company and Seller also shall cooperate with
      Buyer and its Representatives with respect to all filings that Buyer elects
      to
      make or, pursuant to Legal Requirements, shall be required to make in connection
      with the Contemplated Transactions. Company and Seller also shall cooperate
      with
      Buyer and its Representatives in obtaining all Material Consents. In China
      there’s no requirement of filing 

    

    5.5
      NOTIFICATION

    

    Between
      the date of this Agreement and the Closing, any of Seller or the Company shall
      promptly notify Buyer in writing upon becoming aware of (a) any fact or
      condition that causes or constitutes

    
      
        
           

        

        
          -24-

          
            

          

        

        
           

        

      

    

     

    a
      Breach
      of any of Company's representations and warranties made as of the date of this
      Agreement or (b) the occurrence after the date of this Agreement of any fact
      or
      condition that would or be reasonably likely to (except as expressly
      contemplated by this Agreement) cause or constitute a Breach of any such
      representation or warranty had that representation or warranty been made as
      of
      the time of the occurrence of, or Company's or Seller's discovery of, such
      fact
      or condition. Should any such fact or condition require any change to the
      representations an warranties made herein, the Company and Sellers shall
      promptly deliver to Buyer a supplement to the Schedules attached hereto
      specifying such change. Such delivery shall not affect any rights of Buyer
      under
      Section 9.2 and Article 11. During the same period, Company and Sellers also
      shall promptly notify Buyer of the occurrence of any Breach of any covenant
      of
      Company or Seller in this Article 5 or of the occurrence of any event that
      may
      make the satisfaction of the conditions in Article 7 impossible or
      unlikely.

    

    5.6
      NO
      NEGOTIATION

    

    Until
      such time as this Agreement shall be terminated pursuant to Section 9.1, none
      of
      Company nor any of Seller shall directly or indirectly solicit, initiate,
      encourage or entertain any inquiries or proposals from, discuss or negotiate
      with, provide any nonpublic information to or consider the merits of any
      inquiries or proposals from any Person (other than Buyer) relating to any
      business combination transaction involving Company, including the sale by any
      Seller of Company's stock, the merger or consolidation of Company or the sale
      of
      Company's business or any of the Assets (other than in the Ordinary Course
      of
      Business). Company and Sellers shall notify Buyer of any such inquiry or
      proposal within twenty-four (24) hours of receipt or awareness of the same
      by
      Company or Seller.

    

    5.7
      BEST
      EFFORTS

    

    Company
      and Sellers shall use their Best Efforts to cause the conditions in Article
      7
      and Section 8.3 to be satisfied.

    

    5.8
      PAYMENT OF LIABILITIES

    

    Company
      shall pay or otherwise satisfy in the Ordinary Course of Business all of its
      Liabilities and obligations. 

    

    5.9
      COOPERATION WITH RESPECT TO FINANCIAL REPORTING

    

    After
      the
      date of this Agreement, Sellers and Company shall reasonably cooperate with
      Buyer in connection with Buyer's preparation of financial statements and other
      information as required for Buyer’s filings with the SEC under the Exchange Act,
      including Buyer’s Current Report on Form 8-K that is to be filed with the SEC
      pursuant to the Exchange Act in connection with the Closing.

     

    ARTICLE
      VI

    COVENANTS
      OF BUYER PRIOR TO CLOSING

    

    6.1
      BEST
      EFFORTS

     

    Buyer
      shall use its Best Efforts to cause the conditions in Article 8 and Section
      7.3
      to be satisfied.

    
      
         

      

      
        -25-

        
          

        

      

      
         

      

    

     

    ARTICLE
      VII

    CONDITIONS
      PRECEDENT TO BUYER’S OBLIGATION TO CLOSE

    

    Buyer's
      obligation to purchase the Shares and to take the other actions required to
      be
      taken by Buyer at the Closing is subject to the satisfaction, at or prior to
      the
      Closing, of each of the following conditions (any of which may be waived by
      Buyer, in whole or in part):

    

    7.1
      ACCURACY OF REPRESENTATIONS

    

    All
      of
      Sellers’ and Company’s representations and warranties in this Agreement
      (considered collectively), and each of these representations and warranties
      (considered individually), shall have been accurate in all material respects
      as
      of the date of this Agreement, and shall be accurate in all material respects
      as
      of the time of the Closing as if then made, without giving effect to any
      supplement to the Schedules.

    

    7.2
      COMPANY'S PERFORMANCE

    

    All
      of
      the covenants and obligations that Company and Seller are required to perform
      or
      to comply with pursuant to this Agreement at or prior to the Closing (considered
      collectively), and each of these covenants and obligations (considered
      individually), shall have been duly performed and complied with in all material
      respects.

    

    7.3
      CONSENTS

    

    Each
      of
      the Consents identified in Schedule
      7.3
      (the
      "Consents") shall have been obtained and shall be in full force and effect.
      

    

    7.4
      ADDITIONAL DOCUMENTS

    

    Company
      and Seller shall have caused the documents and instruments required by Section
      2.3(a) and the following documents to be delivered (or tendered subject only
      to
      Closing) to Buyer:

    

    (a) The
      charter and all amendments thereto of Company, duly certified as of a recent
      date by the Secretary of State of the jurisdiction of Company's organization;
      

    

    (b) If
      requested by Buyer, any Consents or other instruments that may be required
      to
      permit Buyer's qualification in each jurisdiction in which Company is licensed
      or qualified to do business as a foreign entity;

    

    (c) Certificates
      dated as of a date not earlier than the third business day prior to the Closing
      as to the good standing of Company, executed by the appropriate officials in
      each jurisdiction in which Company is licensed or qualified to do business
      as a
      foreign entity as specified in Schedule
      3.1(a);
      and

    
      
        
           

        

        
          -26-

          
            

          

        

        
           

        

      

    

     

    (d) Such
      other documents as Buyer may request for the purpose of: (i) evidencing the
      accuracy of any of Company's representations and warranties; (ii) evidencing
      the
      performance by Company or Seller of, or the compliance by Company or Seller
      with, any covenant or obligation required to be performed or complied with
      by
      Company or such Seller; (iii) evidencing the satisfaction of any condition
      referred to in this Article 7; or (iv) otherwise facilitating the consummation
      or performance of any of the Contemplated Transactions.

    

    7.5
      NO
      PROCEEDINGS

    

    Since
      the
      date of this Agreement, there shall not have been commenced or threatened
      against Buyer, or against any Related Person of Buyer, any Proceeding (a)
      involving any challenge to, or seeking Damages or other relief in connection
      with, any of the Contemplated Transactions or (b) that may have the effect
      of
      preventing, delaying, making illegal, imposing limitations or conditions on
      or
      otherwise interfering with any of the Contemplated Transactions.

    

    7.6
      NO
      CONFLICT

    

    Neither
      the consummation nor the performance of any of the Contemplated Transactions
      will, directly or indirectly (with or without notice or lapse of time),
      contravene or conflict with or result in a violation of or cause Buyer or any
      Related Person of Buyer to suffer any adverse consequence under (a) any
      applicable Legal Requirement or Order or (b) any Legal Requirement or Order
      that
      has been published, introduced or otherwise proposed by or before any
      Governmental Body, excluding Bulk Sales Laws.

    

    7.7
      GOVERNMENTAL AUTHORIZATIONS

    

    Buyer
      shall have received such Governmental Authorizations as are necessary or
      desirable to allow Buyer to operate the Company’s businesses from and after the
      Closing.

    

    7.8
      SATISFACTION WITH DUE DILIGENCE

    

    Buyer’s
      due diligence investigation shall not have indicated that any of the information
      provided for in the Agreement or in any of the information provided by any
      of
      Seller or the Company is inaccurate, incomplete or untrue in any way, and
      Buyer’s due diligence investigation shall not have revealed any facts,
      circumstances, liabilities or conditions that, in Buyer’s sole discretion, may
      adversely affect the value or prospects of the Shares, the Assets, or the
      Company or that may expose the Company to any liability not heretofore fully
      disclosed to Buyer.

    

    7.9
      FINANCIAL INFORMATION

    

    Company
      shall have prepared and delivered to Buyer the financial statements referred
      to
      in Sections 3.4 and 5.8 hereto and other information required to be filed
      pursuant to the Exchange Act with the SEC by Buyer on its Current Report on
      Form
      8-K in connection with the Closing.

    
      
         

      

      
        -27-

        
          

        

      

      
         

      

    

     

    ARTICLE
      VIII

    CONDITIONS
      PRECEDENT TO SELLERS’ OBLIGATION TO CLOSE

    

    Sellers’
      obligation to sell the Shares and to take the other actions required to be
      taken
      by Company at the Closing is subject to the satisfaction, at or prior to the
      Closing, of each of the following conditions (any of which may be waived by
      Company in whole or in part):

    

    8.1
      ACCURACY OF REPRESENTATIONS

    

    All
      of
      Buyer's representations and warranties in this Agreement (considered
      collectively), and each of these representations and warranties (considered
      individually), shall have been accurate in all material respects as of the
      date
      of this Agreement and shall be accurate in all material respects as of the
      time
      of the Closing as if then made.

    

    8.2
      BUYER'S PERFORMANCE

    

    All
      of
      the covenants and obligations that Buyer is required to perform or to comply
      with pursuant to this Agreement at or prior to the Closing (considered
      collectively), and each of these covenants and obligations (considered
      individually), shall have been performed and complied with in all material
      respects.

    

    8.3
      CONSENTS

    

    Each
      of
      the Consents identified in Schedule
      8.3
      shall
      have been obtained and shall be in full force and effect.

    

    8.4
      ADDITIONAL DOCUMENTS

    

    Buyer
      shall have caused the documents and instruments required by Section 2.3(b)
      and
      the following documents to be delivered (or tendered subject only to Closing)
      to
      Company and Seller such other documents as Company may reasonably request for
      the purpose of (i) evidencing the accuracy of any representation or warranty
      of
      Buyer, (ii) evidencing the performance by Buyer of, or the compliance by Buyer
      with, any covenant or obligation required to be performed or complied with
      by
      Buyer or (iii) evidencing the satisfaction of any condition referred to in
      this
      Article 8.

    

    8.5
      NO
      INJUNCTION

    

    There
      shall not be in effect any Legal Requirement or any injunction or other Order
      that (a) prohibits the consummation of the Contemplated Transactions and (b)
      has
      been adopted or issued, or has otherwise become effective, since the date of
      this Agreement.

    

    8.6
      SALE
      OF SHARES HELD BY BUYER’S EXECUTIVE OFFICER

    

    Kelly
      Fan, who is the President, Chief Executive Officer, Treasurer, and Director
      of
      Buyer, shall have sold to the Sellers, for no additional consideration,
      18,000,000 shares of the common stock of Buyer which are issued and outstanding
      and held by Ms. Fan, pursuant to and in accordance with the terms of the Stock
      Purchase Agreement annexed hereto as Exhibit 8.6 (the “Kelly Fan
      Stock

      
        
           

        

        
          -28-

          
            

          

        

        
           

        

      

    Purchase
      Agreement”). Such shares shall have been allocated between the Sellers as
      follows: 17,100,000 shares to Xinshengxiang; 450,000 shares to Dingliang; and
      450,000 shares to Yue.

     

    ARTICLE
      IX

    TERMINATION

    

    9.1
      TERMINATION EVENTS

    

    By
      notice
      given prior to or at the Closing, subject to Section 9.2, this Agreement may
      be
      terminated as follows:

    

    (a) by
      Buyer,
      if a material Breach of any provision of this Agreement has been committed
      by
      Company or Seller and such Breach has not been waived by Buyer;

    

    (b)
       by
      Buyer,
      if its due diligence investigation indicates that any of the information
      provided for in the Agreement or in any of the information provided by the
      Seller or the Company is inaccurate, incomplete or untrue in any way, or if
      such
      due diligence investigation reveals any facts, circumstances, liabilities or
      conditions that, in Buyer’s sole discretion, may adversely affect the value or
      prospects of the Shares, the Assets, or the Company or that may expose the
      Company to any liability not heretofore fully disclosed to Buyer;
      or

    

    (c) by
      the
      unanimous agreement of Sellers, if a material Breach of any provision of this
      Agreement has been committed by Buyer and such Breach has not been waived by
      Sellers or the Company;

    

    (d) by
      Buyer,
      if any condition in Article 7 has not been satisfied as of the date specified
      for Closing in the first sentence of Section 2.2 or if satisfaction of such
      a
      condition by such date is or becomes impossible (other than through the failure
      of Buyer to comply with its obligations under this Agreement), and Buyer has
      not
      waived such condition on or before such date;

    

    (e) by
      the
      Sellers, if any condition in Article 8 has not been satisfied as of the date
      specified for Closing in the first sentence of Section 2.2 or if satisfaction
      of
      such a condition by such date is or becomes impossible (other than through
      the
      failure of Company or the Seller to comply with their obligations under this
      Agreement), and Company has not waived such condition on or before such
      date;

    

    (f) by
      mutual
      consent of Buyer, the Sellers, and Company; 

    

    (g) by
      Buyer,
      if the Closing has not occurred on or before ninety (90) days after the date
      hereof, or such later date as the parties may agree upon, unless the Buyer
      is in
      material Breach of this Agreement; or

    

    (h) by
      the
      unanimous agreement of Sellers, if the Closing has not occurred on or before
      ninety (90) days after the date hereof, or such later date as the parties may
      agree upon, unless any of Seller or the Company is in material Breach of this
      Agreement.

    
      
        
           

        

        
          -29-

          
            

          

        

        
           

        

      

    

     

    9.2
      EFFECT OF TERMINATION

    

    Each
      party's right of termination under Section 9.1 is in addition to any other
      rights it may have under this Agreement or otherwise, and the exercise of such
      right of termination will not be an election of remedies. If this Agreement
      is
      terminated pursuant to Section 9.1, all obligations of the parties under this
      Agreement will terminate, except that the obligations of the parties in this
      Section 9.2 and Articles 12 and 13 will survive, provided, however, that, if
      this Agreement is terminated because of a Breach of this Agreement by the
      non-terminating party or because one or more of the conditions to the
      terminating party's obligations under this Agreement is not satisfied as a
      result of the non-terminating party's failure to comply with its obligations
      under this Agreement, the terminating party's right to pursue all legal remedies
      will survive such termination unimpaired.

     

    ARTICLE
      X

    ADDITIONAL
      COVENANTS

    

    10.1
      CUSTOMER AND OTHER BUSINESS RELATIONSHIPS

    

    After
      the
      Closing, Sellers shall cooperate with Buyer in its efforts to continue and
      maintain for the benefit of Buyer those business relationships of Company
      existing prior to the Closing and relating to the business to be operated by
      Buyer after the Closing, including relationships with lessors, employees,
      regulatory authorities, licensors, customers, suppliers and others. Sellers
      will
      refer to Buyer all inquiries relating to such business. Sellers shall not take
      any action that would tend to diminish the value of, or interfere with, the
      Company’s business after the Closing, including disparaging the name or business
      of Buyer.

    

    10.2
      FURTHER ASSURANCES

    

    From
      and
      after the date hereof, and continuing after the Closing, the parties shall
      cooperate reasonably with each other and with their respective Representatives
      in connection with any steps required to be taken as part of their respective
      obligations under this Agreement, and shall (a) furnish upon request to each
      other such further information; (b) execute and deliver to each other such
      other
      documents; and (c) do such other acts and things, all as the other party may
      reasonably request for the purpose of carrying out the intent of this Agreement
      and the Contemplated Transactions.

    

    10.3
      POST-CLOSING SEC FILINGS

    

    As
      soon
      as practicable following the Closing, Buyer shall cause the transactions
      contemplated hereunder to be memorialized and disclosed by making all filings
      or
      recordings required under applicable law. Sellers hereby covenant and agree
      to
      aid Buyer, as specifically requested by Buyer, in preparing and making such
      filings or recordings. 

     

    ARTICLE
      XI

    INDEMNIFICATION;
      REMEDIES

    

    11.1
      SURVIVAL

     

    (a)
      All
      representations, warranties, covenants and obligations in this Agreement, the
      Schedules, any supplements to the Schedules, the certificates delivered pursuant
      to Section 2.3, and any other certificate or document delivered pursuant to
      this
      Agreement shall survive the Closing and the consummation of the Contemplated
      Transactions until the expiration of their respective statutes of limitations.
      

    
      
         

      

      
        -30-

        
          

        

      

      
         

      

    

    

    (b)
      The
      right to indemnification, reimbursement or other remedy based upon such
      representations, warranties, covenants and obligations shall not be affected
      by
      any investigation (including any environmental investigation or assessment)
      conducted with respect to, or any Knowledge acquired (or capable of being
      acquired) at any time, whether before or after the execution and delivery of
      this Agreement or the Closing Date, with respect to the accuracy or inaccuracy
      of or compliance with any such representation, warranty, covenant or obligation.
      The waiver of any condition based upon the accuracy of any representation or
      warranty, or on the performance of or compliance with any covenant or
      obligation, will not affect the right to indemnification, reimbursement or
      other
      remedy based upon such representations, warranties, covenants and
      obligations.

    

    11.2
      INDEMNIFICATION AND REIMBURSEMENT BY SELLERS

    

    Sellers
      and the Company shall, jointly and severally, indemnify and hold harmless Buyer,
      and its representatives, shareholders, directors, officers, employees, agents,
      subsidiaries, and affiliates (collectively, the "Buyer Indemnified Persons"),
      and shall reimburse the Buyer Indemnified Persons for any loss, liability,
      claim, damage, expense (including costs of investigation and defense and
      reasonable attorneys' fees and expenses) or diminution of value, whether or
      not
      involving a Third-Party Claim (collectively, "Damages"), arising from or in
      connection with:

    

    (a)
      any
      Breach of any representation or warranty made by any Seller or the Company
      in
      this Agreement and any other certificate, document, writing or instrument
      delivered by any Seller or the Compay pursuant to this Agreement; 

    

    (b)
      any
      Breach of any covenant or obligation of any Seller or the Company in this
      Agreement or in any other certificate, document, writing or instrument delivered
      by any Seller or the Company pursuant to this Agreement; 

    

    (c)
      any
      Liability arising out of the operation of the Company or its business or Assets
      prior to the Closing Date; 

    

    (d)
      any
      product or any services sold, included in Inventory, or otherwise provided
      by,
      the Company, in whole or in part, prior to the Closing Date, including claims
      for breach of warranty or product liability; 

    

    (e)
      any
      Liability under any Company Contract entered into prior to the Closing Date,
      including any Liability arising out of or relating to Seller's credit facilities
      or any security interest related thereto;

      
        
           

        

        
          -31-

          
            

          

        

        
           

        

      

    (f)
      any
      Liability for Taxes, including (1) any Taxes arising as a result of the
      Company's operation of its Business or ownership of its Assets prior to the
      Closing Date, and (2) any Taxes that will arise as a result of the sale of
      the
      Shares pursuant to this Agreement;

    

    (g)
      any
      Liability relating to payroll, vacation, sick leave, workers' compensation,
      unemployment benefits, pension benefits, employee stock option or profit-sharing
      plans, health care plans or benefits or any other employee plans or benefits
      of
      any kind for the Company's employees or former employees or both; 

    

    (h)
      any
      Liability relating to the payment of all wages and other remuneration due to
      any
      Company’s employees with respect to their services as employees of Company
      through the close of business on the Closing Date, including pro rata bonus
      payments and all vacation pay earned prior to the Closing Date and the payment
      of any termination or severance payments and the provision of health plan
      continuation coverage;

    

    (i)
      any
      Liability arising out of any Proceeding commenced after the Closing Date and
      arising out of or relating to any occurrence or event happening prior to the
      Closing Date, and any Liability under any Company Contract that arises after
      the
      Closing but that arises out of or relates to any Breach that occurred prior
      to
      the Closing, and any such other Liability;

    

    (j)
      any
      Liability arising out of or resulting from the Company's compliance or
      noncompliance with any Legal Requirement or Order of any Governmental Body;
      

    

    (k)
      any
      Liability of the Company under this Agreement or any other document executed
      in
      connection with the Contemplated Transactions; and

    

    (l)
      any
      Liability of the Company based upon any Seller’s acts or omissions occurring
      after the Closing Date.

    

    11.3
      INDEMNIFICATION AND REIMBURSEMENT BY BUYER

    

    Buyer
      will indemnify and hold harmless Sellers and the Company, and will reimburse
      Sellers and the Company, for any Damages arising from or in connection
      with:

    

    (a) any
      Breach of any representation or warranty made by Buyer in this Agreement or
      in
      any certificate, document, writing or instrument delivered by Buyer pursuant
      to
      this Agreement;

    

    (b) any
      Breach of any covenant or obligation of Buyer in this Agreement or in any other
      certificate, document, writing or instrument delivered by Buyer pursuant to
      this
      Agreement; and

    

    (c) any
      claim
      by any Person for brokerage or finder's fees or commissions or similar payments
      based upon any agreement or understanding alleged to have been made by such
      Person with Buyer (or any Person acting on Buyer's behalf) in connection with
      any of the Contemplated Transactions.

    
      
         

      

      
        -32-

        
          

        

      

      
         

      

    

    

    11.4
      THIRD-PARTY CLAIMS

     

    (a) Promptly
      after receipt by a Person entitled to indemnity under Section 11.2 or 11.3
      (an
      "Indemnified Person") of notice of the assertion of a Third-Party Claim against
      it, such Indemnified Person shall give notice to the Person obligated to
      indemnify under such Section (an "Indemnifying Person") of the assertion of
      such
      Third-Party Claim, provided that the failure to notify the Indemnifying Person
      will not relieve the Indemnifying Person of any liability that it may have
      to
      any Indemnified Person, except to the extent that the Indemnifying Person
      demonstrates that the defense of such Third-Party Claim is prejudiced by the
      Indemnified Person's failure to give such notice.

    

    (b) If
      an
      Indemnified Person gives notice to the Indemnifying Person pursuant to Section
      11.4(a) of the assertion of a Third-Party Claim, the Indemnifying Person shall
      be entitled to participate in the defense of such Third-Party Claim and, to
      the
      extent that it wishes (unless (i) the Indemnifying Person is also a Person
      against whom the Third-Party Claim is made and the Indemnified Person determines
      in good faith that joint representation would be inappropriate or (ii) the
      Indemnifying Person fails to provide reasonable assurance to the Indemnified
      Person of its financial capacity to defend such Third-Party Claim and provide
      indemnification with respect to such Third-Party Claim), to assume the defense
      of such Third-Party Claim with counsel satisfactory to the Indemnified Person.
      After notice from the Indemnifying Person to the Indemnified Person of its
      election to assume the defense of such Third-Party Claim, the Indemnifying
      Person shall not, so long as it diligently conducts such defense, be liable
      to
      the Indemnified Person under this Article 11 for any fees of other counsel
      or
      any other expenses with respect to the defense of such Third-Party Claim, in
      each case subsequently incurred by the Indemnified Person in connection with
      the
      defense of such Third-Party Claim, other than reasonable costs of investigation.
      If the Indemnifying Person assumes the defense of a Third-Party Claim, (i)
      such
      assumption will conclusively establish for purposes of this Agreement that
      the
      claims made in that Third-Party Claim are within the scope of and subject to
      indemnification, and (ii) no compromise or settlement of such Third-Party Claims
      may be effected by the Indemnifying Person without the Indemnified Person's
      Consent unless (A) there is no finding or admission of any violation of Legal
      Requirement or any violation of the rights of any Person; (B) the sole relief
      provided is monetary damages that are paid in full by the Indemnifying Person;
      and (C) the Indemnified Person shall have no liability with respect to any
      compromise or settlement of such Third-Party Claims effected without its
      Consent. If notice is given to an Indemnifying Person of the assertion of any
      Third-Party Claim and the Indemnifying Person does not, within ten (10) days
      after the Indemnified Person's notice is given, give notice to the Indemnified
      Person of its election to assume the defense of such Third-Party Claim, the
      Indemnifying Person will be bound by any determination made in such Third-Party
      Claim or any compromise or settlement effected by the Indemnified
      Person.

    

    (c) Notwithstanding
      the foregoing, if an Indemnified Person determines in good faith that there
      is a
      reasonable probability that a Third-Party Claim may adversely affect it or
      its
      Related Persons other than as a result of monetary damages for which it would
      be
      entitled to indemnification under this Agreement, the Indemnified Person may,
      by
      notice to the Indemnifying Person, assume the exclusive right to defend,
      compromise or settle such Third-Party Claim, but the Indemnifying Person will
      not be bound by any determination of any Third-Party Claim so defended for
      the
      purposes of this Agreement or any compromise or settlement effected without
      its
      Consent (which may not be unreasonably withheld).

      
        
           

        

        
          -33-

          
            

          

        

        
           

        

      

    (d) Notwithstanding
      the provisions of Section 13.4, Company and Seller hereby consent to the
      nonexclusive jurisdiction of any court in which a Proceeding in respect of
      a
      Third-Party Claim is brought against any Buyer Indemnified Person for purposes
      of any claim that a Buyer Indemnified Person may have under this Agreement
      with
      respect to such Proceeding or the matters alleged therein and agree that process
      may be served on Company and Seller with respect to such a claim anywhere in
      the
      world.

    

    (e) With
      respect to any Third-Party Claim subject to indemnification under this Article
      11: (i) both the Indemnified Person and the Indemnifying Person, as the case
      may
      be, shall keep the other Person fully informed of the status of such Third-Party
      Claim and any related Proceedings at all stages thereof where such Person is
      not
      represented by its own counsel, and (ii) the parties agree (each at its own
      expense) to render to each other such assistance as they may reasonably require
      of each other and to cooperate in good faith with each other in order to ensure
      the proper and adequate defense of any Third-Party Claim.

    

    (f) With
      respect to any Third-Party Claim subject to indemnification under this Article
      11, the parties agree to cooperate in such a manner as to preserve in full
      (to
      the extent possible) the confidentiality of all Confidential Information and
      the
      attorney-client and work-product privileges. In connection therewith, each
      party
      agrees that: (i) it will use its Best Efforts, in respect of any Third-Party
      Claim in which it has assumed or participated in the defense, to avoid
      production of Confidential Information (consistent with applicable law and
      rules
      of procedure), and (ii) all communications between any party hereto and counsel
      responsible for or participating in the defense of any Third-Party Claim shall,
      to the extent possible, be made so as to preserve any applicable attorney-client
      or work-product privilege.

    

    11.5
      OTHER CLAIMS

    

    A
      claim
      for indemnification for any matter not involving a Third-Party Claim may be
      asserted by notice to the party from whom indemnification is sought and shall
      be
      paid promptly after such notice.

    

    11.6
      INDEMNIFICATION IN CASE OF STRICT LIABILITY OR INDEMNITEE
      NEGLIGENCE

    

    THE
      INDEMNIFICATION PROVISIONS IN THIS ARTICLE 11 SHALL BE ENFORCEABLE REGARDLESS
      OF
      WHETHER THE LIABILITY IS BASED UPON PAST, PRESENT OR FUTURE ACTS, CLAIMS OR
      LEGAL REQUIREMENTS (INCLUDING ANY PAST, PRESENT OR FUTURE ENVIRONMENTAL LAW,
      FRAUDULENT TRANSFER ACT, OCCUPATIONAL SAFETY AND HEALTH LAW OR PRODUCTS
      LIABILITY, SECURITIES OR OTHER LEGAL REQUIREMENT) AND REGARDLESS OF WHETHER
      ANY
      PERSON (INCLUDING THE PERSON FROM WHOM INDEMNIFICATION IS SOUGHT) ALLEGES OR
      PROVES THE SOLE, CONCURRENT, CONTRIBUTORY OR COMPARATIVE NEGLIGENCE OF THE
      PERSON SEEKING INDEMNIFICATION OR THE SOLE OR CONCURRENT STRICT LIABILITY
      IMPOSED UPON THE PERSON SEEKING INDEMNIFICATION.

    
      
         

      

      
        -34-

        
          

        

      

      
         

      

    

     

    ARTICLE
      XII

    CONFIDENTIALITY

    

    12.1
      CONFIDENTIAL INFORMATION

    

    Each
      party agrees that, unless and until the Closing has been consummated, each
      party
      will hold in strict confidence, and will not use to the detriment of any other
      party hereto, any data and information obtained in connection with this
      Agreement or the Contemplated Transactions, except insofar as this data and
      information may be required by law to be included in documents required to
      be
      filed by Buyer with the SEC under the Exchange Act and the rules and regulations
      promulgated thereunder. 

    

    ARTICLE
      XIII

    GENERAL
      PROVISIONS

    

    13.1
      EXPENSES

    

    Except
      as
      otherwise expressly provided in this Agreement, each party to this Agreement
      will bear its respective fees and expenses incurred in connection with the
      preparation, negotiation, execution and performance of this Agreement and the
      Contemplated Transactions, including all fees and expense of its
      Representatives. If this Agreement is terminated, the obligation of each party
      to pay its own fees and expenses will be subject to any rights of such party
      arising from a Breach of this Agreement by another party.

    

    13.2
      PUBLIC ANNOUNCEMENTS

    

    Any
      public announcement, press release or similar publicity with respect to this
      Agreement or the Contemplated Transactions will be issued, if at all, at such
      time and in such manner as Buyer determines. Except with the prior consent
      of
      Buyer or as permitted by this Agreement, neither Company, Seller nor any of
      their Representatives shall disclose to any Person (a) the fact that any
      confidential information of Company or Seller has been disclosed to Buyer or
      its
      Representatives, that Buyer or its Representatives have inspected any portion
      of
      the confidential information of Company or Seller, that any confidential
      information of Buyer has been disclosed to Company, Seller or their
      Representatives or that Company, Seller or their Representatives have inspected
      any portion of the confidential information of Buyer or (b) any information
      about the Contemplated Transactions, including the status of such discussions
      or
      negotiations, the execution of any documents (including this Agreement) or
      any
      of the terms of the Contemplated Transactions or the related documents
      (including this Agreement). Seller and Buyer will consult with each other
      concerning the means by which Company's employees, customers, suppliers and
      others having dealings with Company will be informed of the Contemplated
      Transactions, and Buyer will have the right to be present for any such
      communication.

    

    13.3
      NOTICES

    

    All
      notices, Consents, waivers and other communications required or permitted by
      this Agreement shall be in writing and shall be deemed given to a party when
      (a)
      delivered to the appropriate

      
        
           

        

        
          -35-

          
            

          

        

        
           

        

      

    address
      by hand or by nationally recognized overnight courier service (costs prepaid);
      (b) sent by facsimile with confirmation of transmission by the transmitting
      equipment; or (c) received or rejected by the addressee, if sent by certified
      mail, return receipt requested, in each case to the following addresses and
      facsimile numbers and marked to the attention of the person (by name or title)
      designated below (or to such other address, facsimile number, e-mail address
      or
      person as a party may designate by notice to the other parties):

    

    (i)
       Company:
      

     

    Chongqing
      Qiluo Textile Co. Ltd.

    88
      Julong
      Road

    Lidu
      Economic Development Zone

    Fulin,
      Chongqing

    China.

    Attention:
      Dingliang Kuang, CEO

    Facsimile:
      72231011

    

    (ii)
       Sellers:
       

    

    (1)          
      Xinshengxiang
      Industrial Development Co., Ltd.

    2
      River ,
      Chongqing Fulin , Bai Sheng County, China

    Attention:
      Shouqing Kuang, Chairman

    Facsimile:
      72234659

    

    (2)          
      Mr.
      Dingliang Kuang

    88
      Julong
      Road Lidu Economic Development Zone Fulin, Chongqing, China

    Facsimile:
      72231011

    

    (3)          
      Ms.
      Yue
      Kuang

    No.22,
      Dunren Wangzhou Road, Fuling Districtô
      Chongqing City,China

    Facsimile:
      72231011

     

    (iii)
       Buyer:
       

    

    Franklin
      Towers Enterprises, Inc.

    5
      Ash
      Drive

    Center
      Barnstead, NH 03225

    USA

    Attention:
      Kelly Fan, CEO

    Facsimile:
      702-943-0714

    

    with
      a
      mandatory copy to: 

    

    David
      Lubin & Associates, PLLC

    26
      East
      Hawthorne Avenue

    Valley
      Stream, NY 11580

    
      
         

      

      
        -36-

        
          

        

      

      
         

      

       

         
        Attention: David Lubin, Esq. 

    

    Facsimile:
      (516) 887-8250

    

    13.4
      JURISDICTION; SERVICE OF PROCESS

    

    Any
      Proceeding arising out of or relating to this Agreement or any Contemplated
      Transaction may be brought in the state or federal courts located within the
      County of New York of the State of New York, and each of the parties irrevocably
      submits to the exclusive jurisdiction of each such court in any such Proceeding,
      waives any objection it may now or hereafter have to venue or to convenience
      of
      forum, agrees that all claims in respect of the Proceeding shall be heard and
      determined only in any such court and agrees not to bring any Proceeding arising
      out of or relating to this Agreement or any Contemplated Transaction in any
      other court. The parties agree that either or both of them may file a copy
      of
      this paragraph with any court as written evidence of the knowing, voluntary
      and
      bargained agreement between the parties irrevocably to waive any objections
      to
      venue or to convenience of forum. Process in any Proceeding referred to in
      the
      first sentence of this section may be served on any party anywhere in the
      world.

    

    13.5
      ENFORCEMENT OF AGREEMENT

    

    Each
      Seller acknowledges and agrees that Buyer would be irreparably damaged if any
      of
      the provisions of this Agreement are not performed in accordance with their
      specific terms and that any Breach of this Agreement by Company or Sellers
      could
      not be adequately compensated in all cases by monetary damages alone.
      Accordingly, in addition to any other right or remedy to which Buyer may be
      entitled, at law or in equity, it shall be entitled to enforce any provision
      of
      this Agreement by a decree of specific performance and to temporary, preliminary
      and permanent injunctive relief to prevent Breaches or threatened Breaches
      of
      any of the provisions of this Agreement, without posting any bond or other
      undertaking.

    

    13.6
      WAIVER; REMEDIES CUMULATIVE

    

    The
      rights and remedies of the parties to this Agreement are cumulative and not
      alternative. Neither any failure nor any delay by any party in exercising any
      right, power or privilege under this Agreement or any of the documents referred
      to in this Agreement will operate as a waiver of such right, power or privilege,
      and no single or partial exercise of any such right, power or privilege will
      preclude any other or further exercise of such right, power or privilege or
      the
      exercise of any other right, power or privilege. To the maximum extent permitted
      by applicable law, (a) no claim or right arising out of this Agreement or any
      of
      the documents referred to in this Agreement can be discharged by one party,
      in
      whole or in part, by a waiver or renunciation of the claim or right unless
      in
      writing signed by the other party; (b) no waiver that may be given by a party
      will be applicable except in the specific instance for which it is given; and
      (c) no notice to or demand on one party will be deemed to be a waiver of any
      obligation of that party or of the right of the party giving such notice or
      demand to take further action without notice or demand as provided in this
      Agreement or the documents referred to in this Agreement.

    
      
         

      

      
        -37-

        
          

        

      

      
         

      

    

     

    13.7
      ENTIRE AGREEMENT AND MODIFICATION

     

    This
      Agreement supersedes all prior agreements, whether written or oral, between
      the
      parties with respect to its subject matter (including any letter of intent
      and
      any confidentiality agreement between Buyer, on the one hand, and Seller or
      Company, on the other hand) and constitutes (along with the Schedules, Exhibits
      and other documents delivered pursuant to this Agreement) a complete and
      exclusive statement of the terms of the agreement between the parties with
      respect to its subject matter. This Agreement may not be amended, supplemented,
      or otherwise modified except by a written agreement executed by the party to
      be
      charged with the amendment.

    

    13.8
      SCHEDULES

    

    (a) The
      information in the Schedules constitutes (i) exceptions to particular
      representations, warranties, covenants and obligations of Sellers as set forth
      in this Agreement or (ii) descriptions or lists of assets and liabilities and
      other items referred to in this Agreement. If there is any inconsistency between
      the statements in this Agreement and those in the Schedules (other than an
      exception expressly set forth as such in the Schedules with respect to a
      specifically identified representation or warranty), the statements in this
      Agreement will control.

    

    (b) The
      statements in the Schedules, and those in any supplement thereto, relate only
      to
      the provisions in the Section of this Agreement to which they expressly relate
      and not to any other provision in this Agreement.

    

    13.9
      ASSIGNMENTS, SUCCESSORS AND NO THIRD-PARTY RIGHTS

    

    Neither
      the Company nor the Sellers may assign any of its rights or delegate any of
      its
      obligations under this Agreement without the prior written consent of the Buyer,
      and any such attempted assignment shall be null and void and of no force or
      effect. Subject to the preceding sentence, this Agreement will apply to, be
      binding in all respects upon and inure to the benefit of the successors and
      permitted assigns of the parties and their representatives and heirs. Nothing
      expressed or referred to in this Agreement will be construed to give any Person
      other than the parties to this Agreement any legal or equitable right, remedy
      or
      claim under or with respect to this Agreement or any provision of this
      Agreement, except such rights as shall inure to a successor or permitted
      assignee pursuant to this Section 13.9.

    

    13.10
      SEVERABILITY

    

    If
      any
      provision of this Agreement is held invalid or unenforceable by any court of
      competent jurisdiction, the other provisions of this Agreement will remain
      in
      full force and effect. Any provision of this Agreement held invalid or
      unenforceable only in part or degree will remain in full force and effect to
      the
      extent not held invalid or unenforceable.

    

    13.11
      CONSTRUCTION

    

    The
      headings of Articles and Sections in this Agreement are provided for convenience
      only and will not affect its construction or interpretation. All references
      to
      "Articles," "Sections," “Exhibits,” and "Schedules" refer to the corresponding
      Articles, Sections, Exhibits, and Schedules of this Agreement.

    
      
        
           

        

        
          -38-

          
            

          

        

        
           

        

      

    

     

    13.12
      TIME OF ESSENCE

    

    With
      regard to all dates and time periods set forth or referred to in this Agreement,
      time is of the essence.

    

    13.13
      GOVERNING LAW

    

    This
      Agreement will be governed by and construed under the laws of the State of
      New
      York, without regard to conflicts-of-laws principles that would require the
      application of any other law.

    

    13.14
      EXECUTION OF AGREEMENT

    

    This
      Agreement may be executed in one or more counterparts, each of which will be
      deemed to be an original copy of this Agreement and all of which, when taken
      together, will be deemed to constitute one and the same agreement. The exchange
      of copies of this Agreement and of signature pages by facsimile transmission
      shall constitute effective execution and delivery of this Agreement as to the
      parties and may be used in lieu of the original Agreement for all purposes.
      Signatures of the parties transmitted by facsimile shall be deemed to be their
      original signatures for all purposes.

    

    13.15
      SELLER AND COMPANY LIABILITY; SELLERS’ RELEASE

    

    (a)
      The
      liability of each Seller hereunder shall be joint and several with the other
      Sellers. Where in this Agreement provision is made for any action to be taken
      or
      not taken by Company, Sellers jointly and severally undertake to cause Company
      to take or not take such action, as the case may be. Without limiting the
      generality of the foregoing, Sellers shall be jointly and severally liable
      for
      the indemnities set forth in Article 11.

    

    (b)
      The
      liability of Company prior to Closing shall be joint and several with the
      Sellers. Upon Closing, Company shall be forever discharged and released from
      all
      liability hereunder, including any claims from the Sellers. In addition, in
      consideration for the transactions contemplated hereby, as of the Closing,
      Sellers and their respective heirs, executors, successors and assigns (the
      "Waiving Parties"), release, waive and forever discharge, in all capacities,
      including as stockholders of Company, from and after the Closing any and all
      claims, known or unknown, that the Waiving Parties ever had, now have or may
      have against Company and its officers, directors, employees or agents in
      connection with or arising out of any act or omission of Company or its
      officers, directors, employees, advisers or agents, in such capacity, at or
      prior to the Closing. 

    

    13.16
       WAIVER
      OF
      TRIAL BY JURY

    

    THE
      PARTIES HEREBY WAIVE ANY RIGHT TO TRIAL BY JURY IN ANY PROCEEDING ARISING OUT
      OF
      OR RELATING TO THIS AGREEMENT OR ANY OF THE CONTEMPLATED TRANSACTIONS, WHETHER
      NOW EXISTING OR HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT, TORT OR
      OTHERWISE. THE PARTIES AGREE THAT ANY OF THEM MAY FILE A COPY OF THIS PARAGRAPH
      WITH ANY COURT AS WRITTEN EVIDENCE OF THE KNOWING, VOLUNTARY AND

      
        
           

        

        
          -39-

          
            

          

        

        
           

        

      

    BARGAINED-FOR
      AGREEMENT AMONG THE PARTIES IRREVOCABLY TO WAIVE TRIAL BY JURY AND THAT ANY
      PROCEEDING WHATSOEVER BETWEEN THEM RELATING TO THIS AGREEMENT OR ANY OF THE
      CONTEMPLATED TRANSACTIONS SHALL INSTEAD BE TRIED IN A COURT OF COMPETENT
      JURISDICTION BY A JUDGE SITTING WITHOUT A JURY.

    

    

    

    [Remainder
      of Page Intentionally Omitted; Signature Pages to Follow]

    
      
         

      

      
        -40-

        
          

        

      

      
         

      

    

    IN
      WITNESS WHEREOF, the parties have executed this Share Purchase Agreement as
      of
      the date first written above.

    

    BUYER:

     

    FRANKLIN
      TOWERS ENTERPRISES, INC.

     

    By: 
      /s/
      Kelly
      Fan

      
        

      

    

    Name: 
      Kelly
      Fan

    Title: 
      President,
      Chief Executive Officer, Treasurer,
      and Director

     

    SELLERS:

     

    XINSHENGXIANG
      INDUSTRIAL

    DEVELOPMENT
      CO., LTD.

     

    By: 
      /s/
      Shouqing Kuang

      
        

      

    

    Name: 
      Shouqing Kuang

    Title: 
      Chairman

     

     

    /s/
      Dingliang Kuang

      
        

      

    

    DINGLIANG
      KUANG

     

     

    /s/
      Yue
      Kuang

      
        

      

    

    YUE
      KUANG

     

    THE
      COMPANY:

     

    CHONGQING
      QILUO TEXTILE CO. LTD.

     

    By: 
      /s/
      Dingliang Kuang

      
        

      

    

    Name: 
      Dingliang Kuang

    Title: 
      Chief
      Executive Officer

    
      
         

      

      
        -41-

        
          

        

      

      
         

      

    

     

    LIST
      OF
      EXHIBITS

    

    Exhibit
      1.1 Definitions

    Exhibit
      2.3(a)(v): Seller’s Legal Opinion

    Exhibit
      8.6: Kelly Fan Stock Purchase Agreement

    
      
         

      

      
        -42-

        
          

        

      

      
         

      

    

     

    LIST
      OF
      SCHEDULES

    

    Schedule
      3.1(a): Jurisdictions of Company 

    Schedule
      3.1(b): Governing Documents of Company

    Schedule
      3.3(a): Company’s Capitalization

    Schedule
      3.6(a): Company’s Assets

    Schedule
      3.7: Real Estate Owned by Company

    Schedule
      3.7: Real Estate Leased by Company

    Schedule
      3.9(a): Encumbrances on Real Estate of Company

    Schedule
      3.15(a): Company Personnel Matters

    Schedule
      3.16(b): Company Governmental Authorizations

    Schedule
      3.18(a): Company Contracts

    Schedule
      3.19(b): Third Party Obligations of Company to Provide Insurance
      Coverage

    Schedule
      3.21(b): Company Intellectual Property Matters

    Schedule
      3.21(c): Intellectual Property Licenses

    Schedule
      3.21(e): Company Patents

    Schedule
      3.21(h): Company Marks

    Schedule
      3.21(i): Company Copyrights

    Schedule
      3.21(k): Company Net Names

    Schedule
      3.22: Company Related Persons

    Schedule
      3.23: Company Brokers

    Schedule
      4.7: Buyer Brokers

    Schedule
      7.3: Company Material Consents

    Schedule
      8.3: Buyer Material Consents

    
      
        
           

        

        
          -43-

          
            

          

        

        
           

        

      

    

     

    EXHIBITS

     

     

     

     

     

     

     

     

    
 

    
      
         

      

      
        -44-

        
          

        

      

      
         

      

    

     

    EXHIBIT
      1.1

    

    DEFINITIONS

    

    For
      purposes of this Agreement, the following terms and variations thereof have
      the
      meanings specified or referred to in this Section 1.1:

    

    "Accounts
      Receivable"--(a) all trade accounts receivable and other rights to payment
      from
      customers of the Company and the full benefit of all security for such accounts
      or rights to payment, including all trade accounts receivable representing
      amounts receivable in respect of goods shipped or products sold or services
      rendered to customers of the Company, (b) all other accounts or notes receivable
      of the Company and the full benefit of all security for such accounts or notes
      and (c) any claim, remedy or other right related to any of the
      foregoing.

     

    "Assets"--
      all real property; all Tangible Personal Property; all Inventories; all Accounts
      Receivable; all Company Contracts; all data and Records related to the
      operations of Company; and all of the intangible rights and property of Company,
      including Intellectual Property Assets, going concern value, goodwill,
      telephone, facsimile and e-mail addresses.

    

    "Balance
      Sheet"--as defined in Section 3.4.

    

    "Best
      Efforts"--the efforts that a prudent Person desirous of achieving a result
      would
      use in similar circumstances to achieve that result as expeditiously as
      possible, provided, however, that a Person required to use Best Efforts under
      this Agreement will not be thereby required to take actions that would result
      in
      a material adverse change in the benefits to such Person of this Agreement
      and
      the Contemplated Transactions or to dispose of or make any change to its
      business, expend any material funds or incur any other material
      burden.

    

    "Breach"--any
      breach of, or any inaccuracy in, any representation or warranty or any breach
      of, or failure to perform or comply with, any covenant or obligation, in or
      of
      this Agreement or any other Contract, or any event which with the passing of
      time or the giving of notice, or both, would constitute such a breach,
      inaccuracy or failure.

    

    "Business
      Day"--any day other than (a) Saturday or Sunday or (b) any other day on which
      banks in New York are permitted or required to be closed.

    

    "Buyer"--as
      defined in the first paragraph of this Agreement.

    

    "Buyer
      Indemnified Persons"--as defined in Section 11.2.

    

    "Closing"--as
      defined in Section 2.2.

    

    "Closing
      Date"--the date on which the Closing actually takes place.

     

    "Company"--as
      defined in the first paragraph of this Agreement.

      
        
           

        

        
          -45-

          
            

          

        

        
           

        

      

    "Company
      Contract"--any Contract (a) under which Company has or may acquire any rights
      or
      benefits; (b) under which Company has or may become subject to any obligation
      or
      liability; or (c) by which Company or any of the assets owned or used by Company
      is or may become bound.

    

    "Confidential
      Information"--as defined in Section 12.1.

    

    "Consent"--any
      approval, consent, ratification, waiver or other authorization.

    

    “Consideration
      Shares”--as defined in Section 2.1 

    

    "Contemplated
      Transactions"--all of the transactions contemplated by this
      Agreement.

    

    "Contract"--any
      agreement, contract, Lease, consensual obligation, promise or undertaking
      (whether written or oral and whether express or implied), whether or not legally
      binding.

    

    "Damages"--as
      defined in Section 11.2.

    

    "Encumbrance"--any
      charge, claim, community or other marital property interest, condition,
      equitable interest, lien, option, pledge, security interest, mortgage, right
      of
      way, easement, encroachment, servitude, right of first option, right of first
      refusal or similar restriction, including any restriction on use, voting (in
      the
      case of any security or equity interest), transfer, receipt of income or
      exercise of any other attribute of ownership.

    

    "Environment"--soil,
      land surface or subsurface strata, surface waters (including navigable waters
      and ocean waters), groundwaters, drinking water supply, stream sediments,
      ambient air (including indoor air), plant and animal life and any other
      environmental medium or natural resource.

    

    "Environmental,
      Health and Safety Liabilities"--any cost, damages, expense, liability,
      obligation or other responsibility arising from or under any Environmental
      Law
      or Occupational Safety and Health Law, including those consisting of or relating
      to:

    

    (a) any
      environmental, health or safety matter or condition (including on-site or
      off-site contamination, occupational safety and health and regulation of any
      chemical substance or product);

    

    (b) any
      fine,
      penalty, judgment, award, settlement, legal or administrative proceeding,
      damages, loss, claim, demand or response, remedial or inspection cost or expense
      arising under any Environmental Law or Occupational Safety and Health
      Law;

    

    (c) financial
      responsibility under any Environmental Law or Occupational Safety and Health
      Law
      for cleanup costs or corrective action, including any cleanup, removal,
      containment or other remediation or response actions ("Cleanup") required by
      any
      Environmental Law or Occupational Safety and Health Law (whether or not such
      Cleanup has been required or requested by any Governmental Body or any other
      Person) and for any natural resource damages; or

      
        
           

        

        
          -46-

          
            

          

        

        
           

        

      

    (d) any
      other
      compliance, corrective or remedial measure required under any Environmental
      Law
      or Occupational Safety and Health Law.

    

    The
      terms
      "removal," "remedial" and "response action" include the types of activities
      covered by the United States Comprehensive Environmental Response, Compensation
      and Liability Act of 1980 (CERCLA).

    

    "Environmental
      Law"--any Legal Requirement that requires or relates to:

    

    (a) advising
      appropriate authorities, employees or the public of intended or actual Releases
      of pollutants or hazardous substances or materials, violations of discharge
      limits or other prohibitions and the commencement of activities, such as
      resource extraction or construction, that could have significant impact on
      the
      Environment;

    

    (b) preventing
      or reducing to acceptable levels the Release of pollutants or hazardous
      substances or materials into the Environment;

    

    (c) reducing
      the quantities, preventing the Release or minimizing the hazardous
      characteristics of wastes that are generated;

    

    (d) assuring
      that products are designed, formulated, packaged and used so that they do not
      present unreasonable risks to human health or the Environment when used or
      disposed of;

    

    (e) protecting
      resources, species or ecological amenities;

    

    (f) reducing
      to acceptable levels the risks inherent in the transportation of hazardous
      substances, pollutants, oil or other potentially harmful
      substances;

    

    (g) cleaning
      up pollutants that have been Released, preventing the Threat of Release or
      paying the costs of such clean up or prevention; or

    

    (h) making
      responsible parties pay private parties, or groups of them, for damages done
      to
      their health or the Environment or permitting self-appointed representatives
      of
      the public interest to recover for injuries done to public assets.

    

    "Exchange
      Act"--the Securities Exchange Act of 1934.

    

    "Facilities"--any
      real property, leasehold or other interest in real property currently owned
      or
      operated by Company, including the Tangible Personal Property used or operated
      by Company at the respective locations of the Real Property specified herein.
      Notwithstanding the foregoing, for purposes of the definitions of "Hazardous
      Activity" and "Remedial Action", "Facilities" shall mean any real property,
      leasehold or other interest in real property currently or formerly owned or
      operated by Company, including the Tangible Personal Property used or operated
      by Company at the respective locations of the Real Property specified herein.
      

      
        
           

        

        
          -47-

          
            

          

        

        
           

        

      

    "GAAP"--generally
      accepted accounting principles for financial reporting in the United States,
      applied on a basis consistent with the basis on which the Balance Sheet and
      the
      other financial statements referred to in Section 3.4 were
      prepared.

    

    "Governing
      Documents"--with respect to any particular entity, (a) if a U.S. corporation,
      the articles or certificate of incorporation and the bylaws; (b) if a U.S.
      general partnership, the partnership agreement and any statement of partnership;
      (c) if a U.S. limited partnership, the limited partnership agreement and the
      certificate of limited partnership; (d) if a U.S. limited liability company,
      the
      articles of organization and operating agreement; (e) if another type of Person,
      any other charter or similar document adopted or filed in connection with the
      creation, formation or organization of the Person; (f) all equityholders'
      agreements, voting agreements, voting trust agreements, joint venture
      agreements, registration rights agreements or other agreements or documents
      relating to the organization, management or operation of any Person or relating
      to the rights, duties and obligations of the equityholders of any Person; and
      (g) any amendment or supplement to any of the foregoing.

    

    "Governmental
      Authorization"--any Consent, license, registration or permit issued, granted,
      given or otherwise made available by or under the authority of any Governmental
      Body or pursuant to any Legal Requirement.

    

    "Governmental
      Body"--any: (a) nation, state, county, city, town, borough, village, district
      or
      other jurisdiction; (b) federal,
      state, local, municipal, foreign or other government; (c) governmental or
      quasi-governmental authority of any nature (including any agency, branch,
      department, board, commission, court, tribunal or other entity exercising
      governmental or quasi-governmental powers); (d) multinational organization
      or
      body; (e) body exercising, or entitled or purporting to exercise, any
      administrative, executive, judicial, legislative, police, regulatory or taxing
      authority or power; or (f) official of any of the foregoing.

    

    "Ground
      Lease"--any long-term lease of land in which most of the rights and benefits
      comprising ownership of the land and the improvements thereon or to be
      constructed thereon, if any, are transferred to the tenant for the term
      thereof.

    

    "Ground
      Lease Property"--any land, improvements and appurtenances subject to a Ground
      Lease in favor of Company.

    

    "Hazardous
      Activity"--the distribution, generation, handling, importing, management,
      manufacturing, processing, production, refinement, Release, storage, transfer,
      transportation, treatment or use (including any withdrawal or other use of
      groundwater) of Hazardous Material in, on, under, about or from any of the
      Facilities or any part thereof into the Environment and any other act, business,
      operation or thing that increases the danger, or risk of danger, or poses an
      unreasonable risk of harm, to persons or property on or off the
      Facilities.

    

    "Hazardous
      Material"--any substance, material or waste which is or will foreseeably be
      regulated by any Governmental Body, including any material, substance or waste
      which is defined as a "hazardous waste," "hazardous material," "hazardous
      substance," "extremely hazardous waste," "restricted hazardous waste,"
      "contaminant," "toxic waste" or "toxic substance" under any provision

      
        
           

        

        
          -48-

          
            

          

        

        
           

        

      

    of
      Environmental Law, and including petroleum, petroleum products, asbestos,
      presumed asbestos-containing material or asbestos-containing material, urea
      formaldehyde and polychlorinated biphenyls.

    

    "Improvements"--all
      buildings, structures, fixtures and improvements located on the Land or included
      in the Assets, including those under construction.

    

    "Interim
      Balance Sheet"--as defined in Section 3.4.

    

    "Inventories"--all
      inventories of Company, wherever located, including all finished goods, work
      in
      process, raw materials, spare parts and all other materials and supplies to
      be
      used or consumed by Company in the production of finished goods.

    

    “Kelly
      Fan Stock Purchase Agreement”--as defined in Section 8.6. 

     

    "Knowledge"--an
      individual will be deemed to have Knowledge of a particular fact or other matter
      if: (a) that
      individual is actually aware of that fact or matter; or (b) a prudent individual
      could be expected to discover or otherwise become aware of that fact or matter
      in the course of conducting a reasonably comprehensive investigation regarding
      the accuracy of any representation or warranty contained in this Agreement.
      A
      Person (other than an individual) will be deemed to have Knowledge of a
      particular fact or other matter if any individual who is serving, or who has
      at
      any time served, as a director, officer, partner, executor or trustee of that
      Person (or in any similar capacity) has, or at any time had, Knowledge of that
      fact or other matter (as set forth in (a) and (b) above), and any such
      individual (and any individual party to this Agreement) will be deemed to have
      conducted a reasonably comprehensive investigation regarding the accuracy of
      the
      representations and warranties made herein by that Person or
      individual.

    

    "Land"--all
      parcels and tracts of land in which Company has an ownership
      interest.

    

    "Lease"--any
      Real Property Lease or any lease or rental agreement, license, right to use
      or
      installment and conditional sale agreement to which Company is a party and
      any
      other Company Contract pertaining to the leasing or use of any Tangible Personal
      Property.

    

    "Legal
      Requirement"--any federal, state, local, municipal, foreign, international,
      multinational or other constitution, law, ordinance, principle of common law,
      code, regulation, statute or treaty.

    

    "Liability"--with
      respect to any Person, any liability or obligation of such Person of any kind,
      character or description, whether known or unknown, absolute or contingent,
      accrued or unaccrued, disputed or undisputed, liquidated or unliquidated,
      secured or unsecured, joint or several, due or to become due, vested or
      unvested, executory, determined, determinable or otherwise, and whether or
      not
      the same is required to be accrued on the financial statements of such
      Person.

    

    "Order"--any
      order, injunction, judgment, decree, ruling, assessment or arbitration award
      of
      any Governmental Body or arbitrator.

      
        
           

        

        
          -49-

          
            

          

        

        
           

        

      

    

     

    "Ordinary
      Course of Business"--an action taken by a Person will be deemed to have been
      taken in the Ordinary Course of Business only if that action:

    

    (a) is
      consistent in nature, scope and magnitude with the past practices of such Person
      and is taken in the ordinary course of the normal, day-to-day operations of
      such
      Person;

    

    (b) does
      not
      require authorization by the board of directors or shareholders of such Person
      (or by any Person or group of Persons exercising similar authority) and does
      not
      require any other separate or special authorization of any nature;
      and

    

    (c) is
      similar in nature, scope and magnitude to actions customarily taken, without
      any
      separate or special authorization, in the ordinary course of the normal,
      day-to-day operations of other Persons that are in the same line of business
      as
      such Person.

    

    "Person"--an
      individual, partnership, corporation, business trust, limited liability company,
      limited liability partnership, joint stock company, trust, unincorporated
      association, joint venture or other entity or a Governmental Body.

    

    "Proceeding"--any
      action, arbitration, audit, hearing, investigation, litigation or suit (whether
      civil, criminal, administrative, judicial or investigative, whether formal
      or
      informal, whether public or private) commenced, brought, conducted or heard
      by
      or before, or otherwise involving, any Governmental Body or
      arbitrator.

    

    "Real
      Property"--the Land and Improvements and all Appurtenances thereto and any
      Ground Lease Property.

    

    "Real
      Property Lease"--any Ground Lease or Space Lease.

    

    "Record"--information
      that is inscribed on a tangible medium or that is stored in an electronic or
      other medium and is retrievable in perceivable form.

    

    "Related
      Person":

    

    With
      respect to a particular individual: (a) each other member of such individual's
      Family; (b) any Person that is directly or indirectly controlled by any one
      or
      more members of such individual's Family; (c) any Person in which members of
      such individual's Family hold (individually or in the aggregate) a Material
      Interest; and (d) any Person with respect to which one or more members of such
      individual's Family serves as a director, officer, partner, executor or trustee
      (or in a similar capacity). 

    

    With
      respect to a specified Person other than an individual: (a) any Person that
      directly or indirectly controls, is directly or indirectly controlled by or
      is
      directly or indirectly under common control with such specified Person; (b)
      any
      Person that holds a Material Interest in such specified Person; (c) each Person
      that serves as a director, officer, partner, executor or trustee of such
      specified Person (or in a similar capacity); (d) any Person in which such
      specified Person holds a

    
      
        
           

        

        
          -50-

          
            

          

        

        
           

        

      

    

     

    Material
      Interest; and (e) any Person with respect to which such specified Person serves
      as a general partner or a trustee (or in a similar capacity).

    

    For
      purposes of this definition, (a) "control" (including "controlling," "controlled
      by," and "under common control with") means the possession, direct or indirect,
      of the power to direct or cause the direction of the management and policies
      of
      a Person, whether through the ownership of voting securities, by contract or
      otherwise, and shall be construed as such term is used in the rules promulgated
      under the Securities Act; (b) the "Family" of an individual includes (i) the
      individual, (ii) the individual's spouse, (iii) any other natural person who
      is
      related to the individual or the individual's spouse within the second degree
      and (iv) any other natural person who resides with such individual; and (c)
      "Material Interest" means direct or indirect beneficial ownership (as defined
      in
      Rule 13d-3 under the Exchange Act) of voting securities or other voting
      interests representing at least ten percent (10%) of the outstanding voting
      power of a Person or equity securities or other equity interests representing
      at
      least ten percent (10%) of the outstanding equity securities or equity interests
      in a Person.

    

    "Release"--any
      release, spill, emission, leaking, pumping, pouring, dumping, emptying,
      injection, deposit, disposal, discharge, dispersal, leaching or migration on
      or
      into the Environment or into or out of any property.

    

    "Remedial
      Action"--all actions, including any capital expenditures, required or
      voluntarily undertaken (a) to clean up, remove, treat or in any other way
      address any Hazardous Material or other substance; (b) to prevent the Release
      or
      Threat of Release or to minimize the further Release of any Hazardous Material
      or other substance so it does not migrate or endanger or threaten to endanger
      public health or welfare or the Environment; (c) to perform pre-remedial studies
      and investigations or post-remedial monitoring and care; or (d) to bring all
      Facilities and the operations conducted thereon into compliance with
      Environmental Laws and environmental Governmental Authorizations.

    

    "Representative"--with
      respect to a particular Person, any director, officer, manager, employee, agent,
      consultant, advisor, accountant, financial advisor, legal counsel or other
      representative of that Person.

    

    "SEC"--the
      United States Securities and Exchange Commission.

    

    "Securities
      Act"—Securities Act of 1933, as amended.

    

    "Seller"--as
      defined in the first paragraph of this Agreement.

    

    "Tangible
      Personal Property"--all machinery, equipment, tools, furniture, office
      equipment, computer hardware, supplies, materials, vehicles and other items
      of
      tangible personal property (other than Inventories) of every kind owned or
      leased by Company (wherever located and whether or not carried on Company's
      books).

    

    "Tax"--any
      income, gross receipts, license, payroll, employment, excise, severance, stamp,
      occupation, premium, property, environmental, windfall profit, customs, vehicle,
      airplane, boat,

      
        
           

        

        
          -51-

          
            

          

        

        
           

        

      

    vessel
      or
      other title or registration, capital stock, franchise, employees' income
      withholding, foreign or domestic withholding, social security, unemployment,
      disability, real property, personal property, sales, use, transfer, value added,
      alternative, add-on minimum and other tax, fee, assessment, levy, tariff, charge
      or duty of any kind whatsoever and any interest, penalty, addition or additional
      amount thereon imposed, assessed or collected by or under the authority of
      any
      Governmental Body or payable under any tax-sharing agreement or any other
      Contract.

    

    "Tax
      Return"--any return (including any information return), report, statement,
      schedule, notice, form, declaration, claim for refund or other document or
      information filed with or submitted to, or required to be filed with or
      submitted to, any Governmental Body in connection with the determination,
      assessment, collection or payment of any Tax or in connection with the
      administration, implementation or enforcement of or compliance with any Legal
      Requirement relating to any Tax.

    

    "Third
      Party"--a Person that is not a party to this Agreement.

    

    "Third-Party
      Claim"--any claim against any Indemnified Person by a Third Party, whether
      or
      not involving a Proceeding.

    

    "Threat
      of Release"--a reasonable likelihood of a Release that may require action in
      order to prevent or mitigate damage to the Environment that may result from
      such
      Release.

    
      
        
           

        

        
          -52-

          
            

          

        

        
           

        

      

    

     

    EXHIBIT
      2.3(a)(vi)

    

    SELLER’S
      LEGAL OPINION

    

    

    Shuhong
      You

    Attorney
      at Law License No: 972003114550

    Dacheng
      Law Firm ( Chongqing Branch)

    Address:
      Room A, 23 F Yutian Business Mansion , No. 177, 

    Bayi
      Road, Yuzhong District , Chongqing City, China 

    Post
      Code: 400010 Email : ysh01@163.com

    Tel:
      8623-63762600 Fax: 8623-63762568

    Mobile:
      86-13752918588 

    

    

    June
      19,
      2007

    

    

    David
      Lubin, Esq.

    David
      Lubin & Associates, PLLC

    26
      East
      Hawthorne Avenues

    Valley
      Stream, NY 11580

    

    
      	 	
              Re:
                

            	
              Share
                Purchase Agreement, dated June 19, 2007 (the “Purchase Agreement”), by and
                among Chongqing Qiluo Textile Co. Ltd., a limited liability company
                organized under the laws of the People’s Republic of China (the
                “Company”), the selling shareholders of the Company identified on the
                signature page of the Agreement (the “Sellers”), and Franklin Towers
                Enterprises, Inc., a Nevada corporation (the
                “Buyer”)

            

    

    

    Ladies
      and Gentlemen:

    

    We
      have
      acted as counsel to the Company and the Sellers in connection with the execution
      and delivery by our clients of the Purchase Agreement. This opinion was prepared
      and delivered to you at the specific request of our clients pursuant to Section
      2.3(a)(v) of the Purchase Agreement. Capitalized terms not otherwise defined
      herein are defined as set forth in the Purchase Agreement.

    

    We
      have
      participated in the preparation and negotiation of the Purchase Agreement,
      the
      exhibits and schedules thereto, the Sellers’ Closing Documents, and the other
      documents referred to therein. We have examined the original, certified,
      conformed, photostat or xerox copies of all such documents and certificates
      of
      public officials, certificates or officers or representatives of the Company
      and
      others and such other documents, and have made such investigations of law and
      facts, as we have deemed necessary or relevant as a basis for the opinions
      expressed herein. We have reviewed the various corporate proceedings taken
      by
      the Company in connection with the authorization and delivery of such
      documents.

      
        
           

        

        
          -53-

          
            

          

        

        
           

        

      

    Based
      on
      the foregoing and upon such investigation as we have deemed necessary, we give
      you our opinion as follows:

    

    1.
       The
      Company is a limited liability company duly organized, validly existing and
      in
      good standing under the laws of the People’s Republic of China, with corporate
      power and corporate authority to conduct its business as it is now being
      conducted, to own or use the properties and assets that it owns or uses, and
      to
      perform all its obligations under the Company Contracts. Company is duly
      qualified to do business as a foreign entity and is in good standing under
      the
      laws of each state or other jurisdiction in which either the ownership or use
      of
      the properties owned or used by it, or the nature of the activities conducted
      by
      it, requires such qualification. The Company has no subsidiaries and does not
      own any shares of capital stock or other securities of any other
      Person.

    

    2. The
      Company owns good and marketable title to all of the Assets, free and clear
      of
      any Encumbrances, security agreement, conditional sales contract, license,
      or
      other title retention or security arrangement, or is located other than in
      the
      possession of Company. The Assets (i) constitute all of the assets, tangible
      and
      intangible, of any nature whatsoever, necessary to operate Company's business
      in
      the manner presently operated by Company and (ii) include all of the operating
      assets of Company.

    

    3. Schedule
      3.6(a)
      to the
      Purchase Agreement contains an accurate and complete list of all Tangible
      Personal Property owned by the Company.

    

    4. The
      Company does not have any ownership interests in any Real Property.

    

    5. Schedule
      3.8
      to the
      Purchase Agreement contains an accurate and complete list of all Leased Real
      Property.

    

    6. The
      Company is, and at all times has been, in full compliance with each Legal
      Requirement that is, or was, applicable to it or to the conduct or operation
      of
      its business or the ownership or use of any of its Assets. The Company has
      no
      Liabilities, other than as expressly disclosed in the Purchase
      Agreement.

    

    7.
       No
      event
      has occurred or circumstance exists that (with or without notice or lapse of
      time) (A) may constitute or result in a violation by Company of, or a failure
      on
      the part of Company to comply with, any Legal Requirement or (B) may give rise
      to any obligation on the part of Company to undertake, or to bear all or any
      portion of the cost of, any remedial action of any nature.

    

    8. The
      Company has not received any notice or other communication (whether oral or
      written) from any Governmental Body or any other Person regarding (A) any
      actual, alleged, possible or potential violation of, or failure to comply with,
      any Legal Requirement or (B) any actual, alleged, possible or potential
      obligation on the part of Company to undertake, or to bear all or any portion
      of
      the cost of, any remedial action of any nature.

      
        
           

        

        
          -54-

          
            

          

        

        
           

        

      

    9. The
      Company does not have any Governmental Authorizations. The Company may lawfully
      operate and conduct its presently existing and planned business operations
      and
      use or own the Assets without any such Governmental Authorizations. No event
      has
      occurred or circumstance exists that may (with or without notice or lapse of
      time) (A) constitute or result directly or indirectly in a violation of or
      a
      failure to comply with any term or requirement of any Governmental Authorization
      required to be listed in Schedule
      3.16(b)
      to the
      Purchase Agreement or (B) result directly or indirectly in the revocation,
      withdrawal, suspension, cancellation or termination of, or any modification
      to,
      any Governmental Authorization required to be listed in Schedule
      3.16(b).

    

    10. The
      Company has not received any notice or other communication (whether oral or
      written) from any Governmental Body or any other Person regarding (A) any
      actual, alleged, possible or potential violation of or failure to comply with
      any term or requirement of any Governmental Authorization or (B) any actual,
      proposed, possible or potential revocation, withdrawal, suspension,
      cancellation, termination of or modification to any Governmental
      Authorization.

    

    11. There
      is
      no pending or threatened Proceeding: (i) by or against Company or that otherwise
      relates to or may affect the business of, or any of the Assets owned or used
      by,
      Company; or (ii) that challenges, or that may have the effect of preventing,
      delaying, making illegal or otherwise interfering with, any of the Contemplated
      Transactions. 

    

    12. The
      Company is, and at all times has been, in full compliance with, and has not
      been
      and is not in violation of or liable under, any Environmental Law. None of
      Company nor any Seller has any basis to expect, nor has any of them or any
      other
      Person for whose conduct they are or may be held to be responsible received,
      any
      actual or threatened order, notice or other communication from (i) any
      Governmental Body or private citizen acting in the public interest or (ii)
      the
      current or prior owner or operator of any Facilities, of any actual or potential
      violation or failure to comply with any Environmental Law, or of any actual
      or
      threatened obligation to undertake or bear the cost of any Environmental, Health
      and Safety Liabilities with respect to any Facility or other property or asset
      (whether real, personal or mixed) in which Company has or had an interest,
      or
      with respect to any property or Facility at or to which Hazardous Materials
      were
      generated, manufactured, refined, transferred, imported, used or processed
      by
      Company or any other Person for whose conduct it is or may be held responsible,
      or from which Hazardous Materials have been transported, treated, stored,
      handled, transferred, disposed, recycled or received.

    

    13. There
      are
      no pending or threatened claims, Encumbrances, or other restrictions of any
      nature resulting from any Environmental, Health and Safety Liabilities or
      arising under or pursuant to any Environmental Law with respect to or affecting
      any Facility or any other property or asset (whether real, personal or mixed)
      in
      which Company has or had an interest.

    

    14. Schedule
      3.18(a)
      to the
      Purchase Agreement contains an accurate and complete list of the Company
      Contracts. Each Contract identified or required to be identified in Schedule
      3.18(a)
      is in
      full force and effect and is valid and enforceable in accordance with its terms.
      The Company has no other Contracts or obligations to any third party other
      than
      as contained in said Company Contracts. Company has not given to or received
      from any other Person any notice or other

      
        
           

        

        
          -55-

          
            

          

        

        
           

        

      

    communication
      (whether oral or written) regarding any actual, alleged, possible or potential
      violation or breach of, or default under, any Company Contract which is being
      assigned to or assumed by Buyer. 

    

    15. Xinshengxiang
      is the sole record and beneficial owner of 95% of the Shares. Dingliang is
      the
      sole record and beneficial owner of 2.5% of the Shares. Yue is the sole record
      and beneficial owner of 2.5% of the Shares. Each Seller has good and marketable
      title to the Shares, free and clear of any Encumbrance. Upon the execution
      and
      delivery of this Agreement and issuance of the Consideration Shares to the
      Sellers, Buyer shall be the lawful record and beneficial owner of the Shares,
      free and clear of all Encumbrances. There
      are
      no stockholders’ agreements, voting trust, proxies, options, rights of first
      refusal or any other Contracts, agreements or understandings with respect to
      the
      Shares. The Shares were issued in compliance with all Legal Requirements and
      the
      Governing Documents of the Company, were duly authorized, and are fully paid
      and
      non-assessable. The Shares, which constitute one hundred (100%) percent of
      the
      issued and outstanding shares of capital stock of the Company, are free and
      clear of any Encumbrances. Neither Seller has any obligation to the Company
      for
      the Shares. 

    

    16. There
      are
      no Contracts relating to the issuance, sale or transfer of any equity securities
      or other securities of Company, including any of the following: options,
      warrants, agreements, or other rights for the acquisition of shares of the
      Company's capital stock; securities or other obligations of the Company which
      are convertible into shares of the Company's capital stock; or sale agreements,
      shareholder agreements, pledges, proxies, voting trusts, powers of attorney,
      restrictions on transfer or other agreements or instruments that are binding
      on
      Seller or the Company, including without limitation, any such agreements or
      instruments that relate to the ownership, voting or transfer of any shares
      of
      the Company's capital stock. 

    

    17. The
      Purchase Agreement has been duly authorized, executed and delivered by the
      Company, Xinshengxiang, Dingliang and Yue and assuming due authorization,
      execution and delivery by Buyer, the Purchase Agreement constitutes valid and
      binding obligation of the Company, Xinshengxiang, Dingliang and Yue enforceable
      against the Company, Xinshengxiang, Dingliang and Yue in accordance with its
      respective terms. The execution, delivery, and performance of the Purchase
      Agreement shall convey good and marketable title of the Shares to Buyer, and
      the
      Company shall be a wholly-owned subsidiary of Buyer, and no further action
      is
      necessary to effectuate such transfer. The law firm of Shuhong You hereby
      covenants and agrees to promptly take all further action that is necessary
      to
      evidence such transfer to Buyer.

    

    18. Each
      of
      Sellers and the Company has the absolute and unrestricted right, power and
      authority to execute and deliver this Agreement and the Sellers’ Closing
      Documents to which it is a party and to perform its respective obligations
      under
      this Agreement and the Sellers’ Closing Documents, and such action has been duly
      authorized by all necessary action by Sellers and the Company. Each of Seller
      and the Company has all necessary legal capacity to enter into this Agreement
      and the Sellers’ Closing Documents to which it is a party and to perform such
      its obligations thereunder. 

    

    19. Neither
      the execution and delivery of the Purchase Agreement nor the consummation or
      performance of any of the Contemplated Transactions will, directly or
      indirectly

      
        
           

        

        
          -56-

          
            

          

        

        
           

        

      

    (with
      or
      without notice or lapse of time): (i) Breach (A) any provision of any of the
      Governing Documents of Company or (B) any resolution adopted by the board of
      directors or the shareholders of Company; (ii) Breach or give any Governmental
      Body or other Person the right to challenge any of the Contemplated Transactions
      or to exercise any remedy or obtain any relief under any Legal Requirement
      or
      any Order to which Company or any of Seller, or any of the Assets, may be
      subject; (iii) contravene, conflict with or result in a violation or breach
      of
      any of the terms or requirements of, or give any Governmental Body the right
      to
      revoke, withdraw, suspend, cancel, terminate or modify, any Governmental
      Authorization that is held by Company or that otherwise relates to the Assets
      or
      to the business of Company; (iv) Breach any provision of, or give any Person
      the
      right to declare a default or exercise any remedy under, or to accelerate the
      maturity or performance of, or payment under, or to cancel, terminate or modify,
      any Company Contract; or (v) result in the imposition or creation of any
      Encumbrance upon or with respect to any of the Assets or the
      Shares.

    

    20. Neither
      Company nor any Seller is required to give any notice to or obtain any Consent
      from any Person in connection with the execution and delivery of this Agreement
      or the consummation or performance of any of the Contemplated
      Transactions.

    

    21.
       Each
      of
      the English translations of the following documents provided by Sellers to
      Buyer
      is a complete and accurate translation of the original Chinese text contained
      in
      the originals of such documents: (i) Purchase and Sale Contract, dated December
      18, 2006, between Hangzhou Textile Machinery Limited Company and the Company;
      (ii) Leasehold Agreement, dated March 1, 2007, between Chongqing Xinshengxiang
      Industrial Development Co., Ltd. and the Company; and (iii) the form of the
      Labor Contract of the Company.

    

    Very
      truly yours,

     

     

    ___________________________

    Shuhong
      You

    

    

    

    

    
      
         

      

      
        -57-

        
          

        

      

      
         

      

    

    EXHIBIT
      8.6

    

    KELLY
      FAN
      STOCK PURCHASE AGREEMENT

    

    STOCK
      PURCHASE AGREEMENT

    

    This
      STOCK PURCHASE AGREEMENT (this “Agreement”) dated June 19, 2007, by and between
      Kelly Fan (the “Seller”), Xinshengxiang Industrial Development Co., Ltd. a
      limited liability company organized under the laws of the People’s Republic of
      China (“Xinshengxiang”), Dingliang Kuang (“D. Kuang”), and Yue Kuang (“Y. Kuang”
and together with Xinshengxiang and D. Kuang, the “Purchasers”).

    

    RECITALS

    

    A. Seller
      is
      the owner of nineteen million (19,000,000) shares of the common stock of
      Franklin Towers Enterprises, Inc., a Nevada corporation (“Franklin
      Towers”).

    

    B.
       Simultaneously
      herewith, Franklin Towers is entering into a Share Purchase Agreement with
      Chongqing Qiluo Textile Co. Ltd., a limited liability company organized under
      the laws of the People’s Republic of China (“Qiluo”), and Purchasers. Purchasers
      will not enter into the foregoing Share Purchase Agreement with Franklin Towers
      and Qiluo unless Seller enters into this Agreement whereby Seller will sell,
      and
      Purchasers will purchase, in their respective amounts set forth herein, all
      of
      Seller’s rights, title, and interest in and to eighteen million (18,000,000)
      shares of the common stock of Franklin Towers which are issued and outstanding
      and held by Seller (the “Purchased Shares”).

    

    NOW,
      THEREFORE, in consideration of the covenants, promises and representations
      set
      forth herein, and for other good and valuable consideration, the receipt and
      sufficiency of which is hereby acknowledged, and intending to be legally bound
      hereby, the parties agree as follows: 

    

    1. Purchase
      and Sale.
      

    

    1.1 Purchase
      and Sale.
      Subject
      to the terms and conditions of this Agreement, at the Closing (hereafter
      defined), Seller shall sell, assign, transfer, convey, and deliver to
      Purchasers, and Purchasers shall accept and purchase, in their respective
      amounts as set forth in Section 1.2 below, the Purchased Shares and any and
      all
      rights in the Purchased Shares to which Seller is entitled, and by doing so
      Seller shall be deemed to have assigned all of her right, title and interest
      in
      and to the Purchased Shares to Purchasers. Such sale of the Purchased Shares
      shall be evidenced by stock certificates, duly endorsed in blank or accompanied
      by stock powers in the form annexed hereto as Exhibit A duly executed in blank,
      or other instruments of transfer in form and substance reasonably satisfactory
      to Purchasers. The Purchased Shares shall be payable at the Closing by the
      issuance and delivery by Seller to Purchasers of stock certificates dated as
      of
      the Closing Date registered in the names and in such amounts as set forth
      herein.

      
        
           

        

        
          -58-

          
            

          

        

        
           

        

      

    1.2 Allocation
      of Purchased Shares. The
      Purchased Shares shall be allocated between Purchasers as follows: 17,100,000
      Purchased Shares to Xinshengxiang; 450,000 Purchased Shares to D. Kuang; and
      450,000 Purchased Shares to Y. Kuang. 

    

    2.
       Closing.
      

    

    2.1
       Date
      and Location.
      The
      closing of the transactions contemplated by this Agreement (the "Closing")
      shall
      be held simultaneously with the execution of this Agreement at such place as
      the
      parties hereto may agree. 

    

    2.2
       Deliveries.
      At the
      Closing, Seller shall deliver to Purchasers in accordance with the terms of
      Section 1.2 above, (i) stock certificates evidencing the Purchased Shares,
      duly
      endorsed in blank or accompanied by stock powers in the form annexed hereto
      as
      Exhibit A duly executed in blank, or other instruments of transfer in form
      and
      substance reasonably satisfactory to Purchasers, (ii) any documentary evidence
      of the due recordation in the Company’s share register of Purchasers’ full and
      unrestricted title to the Purchased Shares, and (iii) such other documents
      as
      may be required under applicable law or reasonably requested by
      Purchasers.

    

    3.
       Representations
      and Warranties of Seller.
      As an
      inducement to Purchasers to enter into this Agreement and to consummate the
      transactions contemplated herein, Seller represents and warrants to Purchasers
      as follows: 

    

    3.1 Authority.
      Seller
      has the right, power, authority and capacity to execute and deliver this
      Agreement, to consummate the transactions contemplated hereby and to perform
      his
      obligations under this Agreement. This Agreement constitutes the legal, valid
      and binding obligations of Seller, enforceable against Seller in accordance
      with
      the terms hereof.

    

    3.2
       Ownership.
      Seller
      is the sole record and beneficial owner of the Purchased Shares, has good and
      marketable title to the Purchased Shares, free and clear of all Encumbrances
      (hereafter defined), other than applicable restrictions under applicable
      securities laws, and has full legal right and power to sell, transfer and
      deliver the Purchased Shares to Purchasers in accordance with this Agreement.
      “Encumbrances” means any liens, pledges, hypothecations, charges, adverse
      claims, options, preferential arrangements or restrictions of any kind,
      including, without limitation, any restriction of the use, voting, transfer,
      receipt of income or other exercise of any attributes of ownership. Upon the
      execution and delivery of this Agreement, Purchasers will receive good and
      marketable title to the Purchased Shares, free and clear of all Encumbrances,
      other than restrictions imposed pursuant to any applicable securities laws
      and
      regulations. There are no stockholders’ agreements, voting trust, proxies,
      options, rights of first refusal or any other agreements or understandings
      with
      respect to the Purchased Shares.   

     

    3.3
       Valid
      Issuance.
      The
      Purchased Shares are duly authorized, validly issued, fully paid and
      non-assessable, and were not issued in violation of any preemptive or similar
      rights.

    

    3.4
       No
      Conflict.
      None of
      the execution, delivery, or performance of this Agreement, and the consummation
      of the transactions contemplated hereby, conflicts or will conflict with, or
      (with or without notice or lapse of time, or both) result in a termination,
      breach or violation

    
      
         

      

      
        -59-

        
          

        

      

      
         

      

    

     

    of
      (i)
      any instrument, contract or agreement to which Seller is a party or by which
      he
      is bound, or to which the Purchased Shares are subject; or (ii) any federal,
      state, local or foreign law, ordinance, judgment, decree, order, statute, or
      regulation, or that of any other governmental body or authority, applicable
      to
      Seller or the Purchased Shares. 

     

    3.5
       No
      Consent.
      No
      consent, approval, authorization or order of, or any filing or declaration
      with
      any governmental authority or any other person is required for the consummation
      by the Seller of any of the transactions on its part contemplated under this
      Agreement.

    

    4. Representations
      and Warranties of Purchasers.
      As an
      inducement to Seller to enter into this Agreement and to consummate the
      transactions contemplated herein, Purchasers represent and warrant, jointly
      and
      severally, to Seller as follows:

    

    4.1 Authority.
      Purchasers have the right, power, authority and capacity to execute and deliver
      this Agreement, to consummate the transactions contemplated hereby and to
      perform their obligations under this Agreement. This Agreement constitutes
      the
      legal, valid and binding obligations of Purchasers, enforceable against
      Purchasers in accordance with the terms hereof.

    

    4.2
       No
      Consent.
      No
      consent, approval, authorization or order of, or any filing or declaration
      with
      any governmental authority or any other person is required for the consummation
      by the Purchasers of any of the transactions on its part contemplated under
      this
      Agreement.

     

    4.3 No
      Conflict.
      None of
      the execution, delivery, or performance of this Agreement, and the consummation
      of the transactions contemplated hereby, conflicts or will conflict with, or
      (with or without notice or lapse of time, or both) result in a termination,
      breach or violation of (i) any instrument, contract or agreement to which
      Purchasers are a party or by which they are bound; or (ii) any federal, state,
      local or foreign law, ordinance, judgment, decree, order, statute, or
      regulation, or that of any other governmental body or authority, applicable
      to
      Purchasers. 

     

    4.4
       Restricted
      Securities.
      Purchasers understand that the Purchased Shares have not been registered under
      the Securities Act of 1933, as amended (the “Securities Act”) or registered or
      qualified under any the securities laws of any state or other jurisdiction,
      are
“restricted securities,” and cannot be resold or otherwise transferred unless
      they are registered under the Securities Act, and registered or qualified under
      any other applicable securities laws, or an exemption from such registration
      and
      qualification is available. Each certificate for any Purchased Shares shall
      bear
      a legend to the foregoing effect.

    

    4.5 Review
      of SEC Documents. 
      Purchasers have reviewed or received copies of all reports and other documents
      filed by Franklin Towers and its officers and directors with the Securities
      and
      Exchange Commission and any other documents or information requested by
      Purchasers.  

    
      
         

      

      
        -60-

        
          

        

      

      
         

      

    

    4.6 No
      Reliance. 
      Other than as set forth herein, Purchasers are not relying upon any other
      information, representation or warranty by Seller or any representative of
      Seller in determining to invest in the Purchased Shares.  Purchasers have
      consulted, to the extent deemed appropriate by Purchasers, with the Purchasers’
own advisers as to the financial, tax, legal and related matters concerning
      an
      investment in the Purchased Shares and on that basis believes that his, her
      or
      its investment in the Purchased Shares is suitable and appropriate for
      Purchasers.

     

    5.
       Indemnification;
      Survival.
      

     

    5.1
       Indemnification.
      Sellers
      on the one hand, and Purchasers on the other hand, shall jointly and severally
      indemnify and hold harmless the other party and such other party’s agents,
      beneficiaries, affiliates, representatives and their respective successors
      and
      assigns (collectively, the “Indemnified Persons”) from and against any and all
      damages, losses, liabilities, taxes and costs and expenses (including, without
      limitation, attorneys’ fees and costs) (collectively, “Losses”) resulting
      directly or indirectly from (a) any inaccuracy, misrepresentation, breach of
      warranty or non-fulfillment of any of the representations and warranties of
      such
      party in this Agreement, or any actions, omissions or statements of fact
      inconsistent with in any material respect any such representation or warranty,
      (b) any failure by such party to perform or comply with any agreement, covenant
      or obligation in this Agreement.

     

    5.2
       Survival.
      All
      representations, warranties, covenants and agreements of the parties contained
      herein or in any other certificate or document delivered pursuant hereto shall
      survive the date hereof until the expiration of the applicable statute of
      limitations.

    

    6.
       Miscellaneous.
      

    

    6.1 Further
      Assurances.
      From
      time to time, whether at or following the Closing, each party shall make
      reasonable commercial efforts to take, or cause to be taken, all actions, and
      to
      do, or cause to be done, all things reasonably necessary, proper or advisable,
      including as required by applicable laws, to consummate and make effective
      as
      promptly as practicable the transactions contemplated by this
      Agreement.

    

    6.2
       Notices.
      All
      notices or other communications required or permitted hereunder shall be in
      writing shall be deemed duly given (a) if by personal delivery, when so
      delivered, (b) if mailed, three (3) business days after having been sent by
      registered or certified mail, return receipt requested, postage prepaid and
      addressed to the intended recipient as set forth below, or (c) if sent through
      an overnight delivery service in circumstances to which such service guarantees
      next day delivery, the day following being so sent:

    

    
      	
            	(1)	
              If
                to Seller:

            

    

     

    Kelly
      Fan

    5
      Ash
      Drive

    Center
      Barnstead, NH 03225

     

    
      
         

      

      
        -61-

        
          

        

      

      
         

      

    

    
      	
            	(2)	
              If
                to Purchasers:

            

    

     

    Xinshengxiang
      Industrial Development Co., Ltd.

    2
      River ,
      Chongqing Fulin , Bai Sheng County,

    Fulin,
      Chongqing China

    

    Any
      party
      may change the address to which notices and other communications hereunder
      are
      to be delivered by giving the other parties notice in the manner herein set
      forth.

    

    6.3
       Choice
      of Law.
      This
      Agreement shall be governed, construed and enforced in accordance with the
      laws
      of the State of New York, without giving effect to principles of conflicts
      of
      law.

    

    6.4
       Jurisdiction.
      The
      parties hereby irrevocably consent to the in personam jurisdiction of the state
      or federal courts located in the State of New York, in connection with any
      action or proceeding arising out of or relating to this Agreement or the
      transactions and the relationships established thereunder. 

     

    6.5 Entire
      Agreement.
      This
      Agreement sets forth the entire agreement and understanding of the parties
      in
      respect of the transactions contemplated hereby and supersedes all prior and
      contemporaneous agreements, arrangements and understandings of the parties
      relating to the subject matter hereof. No representation, promise, inducement,
      waiver of rights, agreement or statement of intention has been made by any
      of
      the parties which is not expressly embodied in this Agreement.

    

    6.6 Assignment.
      Each
      party's rights and obligations under this Agreement shall not be assigned or
      delegated, by operation of law or otherwise, without the other party's prior
      written consent, and any such assignment or attempted assignment shall be void,
      of no force or effect, and shall constitute a material default by such party.
      

    

    6.7
       Amendments.
      This
      Agreement may be amended, modified, superseded or cancelled, and any of the
      terms, covenants, representations, warranties or conditions hereof may be
      waived, only by a written instrument executed by the parties
      hereto.

    

    6.8 Waivers.
      The
      failure of any party at any time or times to require performance of any
      provision hereof shall in no manner affect the right at a later time to enforce
      the same. No waiver by any party of any condition, or the breach of any term,
      covenant, representation or warranty contained in this Agreement, whether by
      conduct or otherwise, in any one or more instances shall be deemed to be or
      construed as a further or continuing waiver of any such condition or breach
      or a
      waiver of any other term, covenant, representation or warranty of this
      Agreement.

    

    6.9 Counterparts.
      This
      Agreement may be executed simultaneously in two or more counterparts and by
      facsimile, each of which shall be deemed an original, but all of which together
      shall constitute one and the same instrument.

      
        
           

        

        
          -62-

          
            

          

        

        
           

        

      

    6.10 Severability. 
      If any
      term, provisions, covenant or restriction of this Agreement is held by a court
      of competent jurisdiction or other authority to be invalid, void or
      unenforceable, the remainder of the terms, provisions, covenants and
      restrictions of this Agreement shall remain in full force and effect and shall
      in no way be affected, impaired or invalidated so long as the economic or legal
      substance of the transactions contemplated hereby is not affected in any manner
      materially adverse to any party. Upon such determination, the parties shall
      negotiate in good faith to modify this Agreement so as to effect the original
      intent of the parties as closely as possible in an acceptable manner in order
      that the transactions contemplated hereby be consummated as originally
      contemplated to the fullest extent possible. 

    

    6.11
       Interpretation.
      The
      parties agree that this Agreement shall be deemed to have been jointly and
      equally drafted by them, and that the provisions of this Agreement therefore
      shall not be construed against a party or parties on the ground that such party
      or parties drafted or was more responsible for the drafting of any such
      provision(s). The parties further agree that they have each carefully read
      the
      terms and conditions of this Agreement, that they know and understand the
      contents and effect of this Agreement and that the legal effect of this
      Agreement has been fully explained to its satisfaction by counsel of its own
      choosing.

     

    

     

    [The
      remainder of this page left intentionally blank; signature page to
      follow]

     

    
      
         

      

      
        -63-

        
          

        

      

      
         

      

       

    

    IN
      WITNESS WHEREOF, the undersigned have duly executed this Stock Purchase
      Agreement as of the date first above written.

     

     

    _____________________________

    KELLY
      FAN

     

     

    XINSHENGXIANG
      INDUSTRIAL

    DEVELOPMENT
      CO., LTD.

     

     

    By: 
      __________________________

    Name: 
      Shouqing Kuang

    Title: 
      Chairman

     

     

    _____________________________

    DINGLIANG
      KUANG

     

     

    _____________________________

    YUE
      KUANG

    
      
         

      

      
        -64-

        
          

        

      

      
         

      

    

     

    EXHIBIT
      A

     

    IRREVOCABLE
      STOCK POWER FORM

     

    

    FOR
      VALUE RECEIVED,

    

    Name
      of
      Seller: _______________________________________

    

    Hereby
      sells, assigns and transfers unto:

     

     

      
        

      

    

    (Please
      print or typewrite name and address, including zip code, of
      assignee)

     

    
      
        

      

    

     

      
        

      

    

     

    Social
      Security or other identifying number of
      assignee________________________________________________________

    

    0f
      the
      capital stock represented by the within certificate and do hereby irrevocably
      constitute and appoint ________________________, Attorney to transfer the said
      stock on the books of the within named Corporation with full power of
      substitution in the premises.

    

    

    Date:_____________________________

     

     

    Signed: 
      __________________________________________________________

     

    _________________________________________________________

    (person(s)
      executing this power sign(s) here)

    

    

    Affix
      a Medallion Signature Guarantee imprint------->

    

    IMPORTANT
      READ CAREFULLY

    

    The
      signature to this assignment must correspond with the name as written upon
      the
      face of the certificate in every particular without alteration or enlargement
      or
      any change whatsoever. The signature of the person executing this power must
      be
      guaranteed by an eligible Guarantor Institution such as a Commercial Bank,
      Trust
      Company, Securities Broker/Dealer, Credit Union, or Savings Association
      participating in a Medallion Program approved by the Securities Transfer
      Association, Inc. Unfortunately no other form of signature verification can
      be
      accepted.

    
      
        
           

        

        
          -65-

          
            

          

        

        
           

        

      

    

     

    SCHEDULES

    

     

     

     

    
 

    
      
         

      

      
        -66-

        
          

        

      

      
         

      

    

    Schedule
      3.1(a):

    

    Jurisdictions
      of Company

    

    

    1.
       People’s
      Republic of China

    

     

     

     

    
 

    
      
         

      

      
        -67-

        
          

        

      

      
         

      

    

    Schedule
      3.1(b):

    

    

    Governing
      Documents of Company

     

     

     

     

     

    
 

    
      
         

      

      
        -68-

        
          

        

      

      
         

      

    

    Schedule
      3.3(a):

    

    Company’s
      Capitalization

    

    

    The
      Registered Capital Stock of the Company is owned as follows: 

    

    
      	
              (i)
                

            	
              Xinshengxiang
                Industrial Development Co., Ltd., owns 95% of the shares of the registered
                capital stock of the Company; 

            

    

    

    
      	
              (ii)
                

            	
              Mr.
                Dingliang Kuang owns 2.5% of the shares of the registered capital
                stock of
                the Company; and

            

    

    

    
      	
              (iii)
                

            	
              Ms.
                Yue Kuang owns 2.5% of the shares of the registered capital stock
                of the
                Company.

            

    

    

    

     

     

     

    
 

    
      
         

      

      
        -69-

        
          

        

      

      
         

      

    

    Schedule
      3.6(a):

    

    Company’s
      Assets

    

    

    1.
      $6,000,000 Yuan in bank deposits

    2.
      Machines

    3.
      Office
      equipment

     

     

     

    
 

    
      
         

      

      
        -70-

        
          

        

      

      
         

      

    

    Schedule
      3.7:

    

    Real
      Estate Owned by Company

    

    None

     

     

     

    
 

    
      
         

      

      
        -71-

        
          

        

      

      
         

      

    

    Schedule
      3.8:

    

    Real
      Estate Leased by Company

    

    1.
      On
      January 28, 2007, the Company entered into a twenty (20) year lease with
      Xinshengxiang, a 95% shareholder, to use 11,400 square meters factory building
      located at 88 Julong Road, Lidu Economic Development Zone, Fulin, Chongqing.
      The
      monthly rent is $2,214 and will be paid by the end the year commencing on March
      1, 2007.

     

     

     

     

    
 

    
      
         

      

      
        -72-

        
          

        

      

      
         

      

    

    Schedule
      3.9(a):

    

    Encumbrances
      on Real Estate of Company

    

    None

     

     

     

    
 

    
      
         

      

      
        -73-

        
          

        

      

      
         

      

    

    Schedule
      3.15(a):

    

    Company
      Personnel Matters

    

    

    

    1.
      The
      Company has ten employees.

    

     

     

     

     

    
 

    
      
         

      

      
        -74-

        
          

        

      

      
         

      

    

    Schedule
      3.16(b):

    

    Company
      Governmental Authorizations

    

    None

     

     

     

    
 

    
      
         

      

      
        -75-

        
          

        

      

      
         

      

    

    Schedule
      3.18(a):

    

    Company
      Contracts

    

    1.
      On
      December 18, 2006, the Company signed a purchase contract in the amount of
      $307,440 (2,400,000 Chinese Yuan) with Hangzhou Textile Machinery Co. Ltd to
      purchase six (6) new silk drawing machinery units. The Company is to pay 20%
      of
      the total contracted price by January 30, 2007. Delivery of the equipment will
      be made upon payment of an additional 60% of the contracted price. The remaining
      20% will be paid upon the completion of the installation.

    

    2.
      On
      January 28, 2007, the Company signed a twenty (20) year lease with
      Xinshengxiang, a 95% shareholder, to use 11,400 square meters factory building
      located at 88 Julong Road, Lidu Economic Development Zone, Fulin, Chongqing.
      The
      monthly rent is $2,214 and will be paid by the end the year commencing on March
      1, 2007.

    

    

    

    

    

    
      
         

      

      
        -76-

        
          

        

      

      
         

      

    

    Schedule
      3.19(b):

    

    Third
      Party Obligations of Company to Provide Insurance Coverage

    

    

    None

     

     

     

    
 

    
      
         

      

      
        -77-

        
          

        

      

      
         

      

    

    Schedule
      3.21(b):

    

    Company
      Intellectual Property Matters

     

     

    None

     

     

     

    
 

    
      
         

      

      
        -78-

        
          

        

      

      
         

      

    

    Schedule
      3.21(c):

    

    Intellectual
      Property Licenses

    

    None

     

     

     

    
 

    
      
         

      

      
        -79-

        
          

        

      

      
         

      

    

    Schedule
      3.21(e):

    

    Company
      Patents

    

    

    None

     

     

    
 

    
      
         

      

      
        -80-

        
          

        

      

      
         

      

    

    Schedule
      3.21(h):

    

    Company
      Marks

    

    

    None

    

     

     

    
 

    
      
         

      

      
        -81-

        
          

        

      

      
         

      

    

    Schedule
      3.21(i):

    

    Company
      Copyrights

    

    

    None

     

     

    
 

    
      
         

      

      
        -82-

        
          

        

      

      
         

      

    

    Schedule
      3.21(k):

    

    Company
      Net Names

     

    www.unitedsilkco.com 

     

     

     

    
 

    
      
         

      

      
        -83-

        
          

        

      

      
         

      

    

    Schedule
      3.22:

    

    Company
      Related Persons

    

    1.
      The
      Company borrowed $864 (6,760 Chinese Yuan) from Xinshengxiang during the process
      of incorporation. The Company will repay the full amount due to “Xinshengxiang
      Industrial Development Co., Ltd” when the Company starts operation. No interest
      has been paid or accrued on the balance due to related party.

    

    2.
      On
      January 28, 2007, the Company signed a twenty (20) year lease with
      Xinshengxiang, a 95% shareholder, to use 11,400 square meters factory building
      located at 88 Julong Road, Lidu Economic Development Zone, Fulin, Chongqing.
      The
      monthly rent is $2,214 and will be paid by the end the year commencing on March
      1, 2007.

    

    

    

    

    
      
         

      

      
        -84-

        
          

        

      

      
         

      

    

    Schedule
      3.23:

    

    Company
      Brokers

    

    

    None

    

    

    
      
         

      

      
        -85-

        
          

        

      

      
         

      

    

    Schedule
      4.7:

    

    Buyer
      Brokers

    

    

    None

     

     

     

    
 

    
      
         

      

      
        -86-

        
          

        

      

      
         

      

    

    Schedule
      7.3:

    

    Company
      Material Consents

    

    

    

    None

     

     

    
 

    
      
         

      

      
        -87-

        
          

        

      

      
         

      

    

    Schedule
      8.3:

    

    Buyer
      Material Consents

    

    

    

    

    None

     

     

     

     

    
      
         

      

        -88-

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