Document:

SHARE PURCHASE AGREEMENT

     SHARE PURCHASE AGREEMENT (this "Agreement"), dated September 5, 2006, among
Pay88, Inc.,  a Nevada  corporation (the "Buyer");  Chongqing Qianbao Technology
Ltd., a  limited  liability  company  organized  under  the laws of the People's
Republic  of  China  (the  "Company");  Ying  Bao ("Bao");  and  Chongqing  Yahu
Information  Development Co.,  Ltd., a limited liability company organized under
the laws of the People's  Republic of  China ("Yahu"; and together with Bao, 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  Seller  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 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.

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(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  (five  million)  shares  (the  "Consideration  Shares")  of  Series A
Preferred Stock of the Buyer,  which shall be allocated between  Shareholders as
follows:  4,950,000 Consideration Shares to Yahu and 50,000 Consideration Shares
to Bao. The Consideration Shares shall be payable at the Closing by the issuance
and delivery by Buyer to  Shareholders  of certificates in definitive form 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
September 5, 2006. Subject to the provisions of 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.

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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.

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                                   ARTICLE III
                    REPRESENTATIONS AND WARRANTIES OF SELLER

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
of Seller and the Company,  enforceable  against each of them in accordance with
its terms.  Upon the execution and delivery by each of Seller and the Company of
this  Agreement and each other  agreement to be executed or delivered by Sellers
at the Closing  (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 of 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 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 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):

         (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;

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         (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.

(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) Yahu is the sole record and beneficial owner of 99% of the Shares and Bao is
the sole record and beneficial  owner of 1% 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
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.

(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.

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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 June
30, 2006  (including the notes thereto,  the "Balance  Sheet"),  and the related
audited  statements  of income,  changes  in  Sellers'  equity  and cash  flows,
together with the report  thereon of Seligson &  Giannatasio,  LLP,  independent
certified public accountants, and an unaudited balance sheet of Company for July
and August (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.

(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.

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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.

(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.

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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 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.

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(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;

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(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 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.

                                       10
<PAGE>

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

                                       11
<PAGE>

         (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.

(c) Except as set forth in Schedule 3.18(c):

                                       12
<PAGE>

         (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) Except as set forth in Schedule 3.18(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.

                                       13
<PAGE>

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 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.

                                       14
<PAGE>

(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.

(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.

                                       15
<PAGE>

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").

(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.

                                       16
<PAGE>

(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.

(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
<PAGE>

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 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 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 not a U.S. person (as that term is defined in
Regulation  S  Promulgated   under  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 by reason of Rule 501(a)(3)),  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 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.

(c) 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:

                                       18
<PAGE>

                    "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.

                                   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.

                                       19
<PAGE>

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 the
undersigned  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 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).

                                       20
<PAGE>

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 the  undersigned  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  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;

                                       21
<PAGE>

         (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

         (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;

                                       22
<PAGE>

         (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   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.

                                       23
<PAGE>

5.6 NO NEGOTIATION

Until such time as this Agreement  shall be terminated  pursuant to Section 9.1,
neither  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.

                                   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):

                                       24
<PAGE>

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

(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.

                                       25
<PAGE>

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 such party's discretion,  may
adversely affect the value or prospects of the Shares 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.

                                  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):

                                       26
<PAGE>

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.

                                   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 such party's discretion, may adversely affect
the value or  prospects  of the  Shares or the  Company  or that may  expose the
Company to any liability not heretofore fully disclosed to Buyer; or

                                       27
<PAGE>
(c) by the majority 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' Agent 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  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.

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.

                                       28
<PAGE>
                                    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.

(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.

                                       29
<PAGE>

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;

(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;

                                       30
<PAGE>

(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.

11.4 THIRD-PARTY CLAIMS

(a) Promptly after receipt by a Person entitled to indemnity under Section 11.2,
11.3  (to the  extent  provided  in the  last  sentence  of  Section  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.

                                       31
<PAGE>

(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).

(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.

                                       32
<PAGE>

(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.

                                   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.

                                       33
<PAGE>

                                  ARTICLE XIII
                               GENERAL PROVISIONS

13.1 EXPENSES

Except as otherwise  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  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):

Company:

                  Chongqing Qianbao Technology Ltd.
                  No. 78 1st Yanghe Village
                  Jiangbei District, Chongqing
                  China.
                  Attention:
                             ----------
                  Facsimile:
                             ----------

                                       34
<PAGE>

Sellers:

                  Chongqing Yahu Information Development Co., Ltd.
                  c/o No. 78 1st Yanghe Village
                  Jiangbei District, Chongqing
                  China.
                  Attention: Mr. Tao Fan
                  Facsimile:
                             ----------

                  Ying Bao
                  c/o No. 78 1st Yanghe Village
                  Jiangbei District, Chongqing
                  China.
                  Facsimile:
                             ----------

Buyer:            Pay88, Inc.
                  1053 North Barnstead Road
                  Barnstead, NH 03225
                  Facsimile:
                             ----------

with a mandatory copy to:

                  David Lubin & Associates, PLLC
                  26 East Hawthorne Avenue
                  Valley Stream, NY 11580
                  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.

                                       35
<PAGE>

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.

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.

                                       36
<PAGE>

(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.

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.

                                       37
<PAGE>

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
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]

                                       38
<PAGE>

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

                                            BUYER:

                                                PAY88, INC.

                                                By:    /s/ Guo Fan
                                                       -----------
                                                Name:  Guo Fan
                                                Title: Chief Executive Officer

                                            SELLERS:

                                                CHONGQING YAHU INFORMATION
                                                DEVELOPMENT CO., LTD.

                                                By:    /s/ Ying Bao
                                                       ------------
                                                Name:  Ying Bao
                                                Title: CFO

                                                /s/ Ying Bao
                                                ------------
                                                YING BAO

                                            THE COMPANY:

                                               CHONGQING QIANBAO TECHNOLOGY LTD.

                                                By:    /s/ Tao Fan
                                                       -----------
                                                Name:  Tao Fan
                                                Title: CEO

                                       39
<PAGE>

                                LIST OF EXHIBITS

Exhibit 1.1 Definitions
Exhibit 2.3(a)(v): Seller's Legal Opinion

                                       40
<PAGE>

                                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 3.18(c): Enforceability of Company Contracts
Schedule 3.18(d): Compliance with 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

                                       41
<PAGE>

                                    EXHIBITS

                                       42
<PAGE>

                                   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.

         "Code"--the Internal Revenue Code of 1986.

                                       43
<PAGE>

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

         "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.

         "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

                                       44
<PAGE>

         (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.

                                       45
<PAGE>

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

                                       46
<PAGE>

         "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.

         "IRS"--the  United States  Internal  Revenue Service and, to the extent
relevant, the United States Department of the Treasury.

         "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.

                                       47
<PAGE>

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

         "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 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).

                                       48
<PAGE>

         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).

                                       49
<PAGE>

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

                                       50
<PAGE>

                               EXHIBIT 2.3(a)(vi)

                             SELLER'S LEGAL OPINION

                             JianJun Bi, Attorney
                             Chongqing Sicheng Law Office Ltd.
                             5-1, 7th cell, No. 38 Southern Songshi Road, Longxi
                             Yubei District, Chongqing, China
                             Phone: 23-13808358468
                             Fax: 23-67766503
                             E-mail: bijianjun@163.com

August 24, 2006

David Lubin
David Lubin & Associates, PLLC
26 East Hawthorne Avenue
Valley Stream, NY 11580
Phone: (516) 887-8200
Fax:   (516) 887-8250

      Dear David Lubin:

      I represent for Chongqing Qianbao Technology Ltd. I write, with their
permission, to convey the content of legal opinions given our clients by the
Chongqing Sicheng Law Office Ltd. under my direction.

      1. The Company is a corporation 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. 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, and none of the Assets are 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. 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. 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 disclosed on Schedule 3.11 to the Purchase Agreement.

      4. 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.

                                       51
<PAGE>

      5. 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.

      6. 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.

      7. Schedule 3.18(a) to the Purchase Agreement contains an accurate and
complete list of the Company Contracts. The Company has no other Contracts or
obligations to any third party other than as contained in said Contracts.

      8. The only record and beneficial shareholders of the Company are Bao, who
holds 1 % of the Company's issued and outstanding shares and Yahu, which holds
99% of the Company's issued and outstanding 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.

      9. 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.

      10. The Purchase Agreement has been duly authorized, executed and
delivered by the Company, Yahu and Bao and assuming due authorization, execution
and delivery by Buyer, the Purchase Agreement constitutes valid and binding
obligation of the Company, Yahu and Bao enforceable against the Company, Yahu
and Bao 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 no further action is necessary to effectuate such
transfer to Buyer.

      11. 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

                                       52
<PAGE>

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.

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

      13. 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.

      Please feel free to contact me if you have any questions.

      Regards,

      JianJun Bi                      /s/ JianJun Bi

      August 24, 2006

JianJun Bi, Attorney
Chongqing Sicheng Law Office Ltd.
5-1, 7th cell, No. 38 Southern Songshi Road, Longxi
Yubei District, Chongqing, China
Phone: 23-13808358468
Fax: 23-67766503
E-mail: bijianjun@163.com

                                       53
<PAGE>

                                    SCHEDULES

                                       54
<PAGE>

                                Schedule 3.1(a):

                            Jurisdictions of Company

1.       People's Republic of China

                                       55
<PAGE>

                                Schedule 3.1(b):

                         Governing Documents of Company

                                       56
<PAGE>

                                Schedule 3.3(a):

                            Company's Capitalization

The Registered  Capital  Stock  of  the  Company  is  owned  as  follows: 99% by
Chongqing Yahu Information Development Co., Ltd.; 1% by Ying Bao.

                                       57
<PAGE>

                                Schedule 3.6(a):

                                Company's Assets

Name                                         Quantity
1.       Server (ZRI)                           2
2.       Server (ZRI)                           1
3.       Server (8D)                            1
4.       Office computer (8d PC)               21
5.       Laptop(ASUS W3H)                       1
6.       Laptop(ASUS M6000)                     2
7.       Laptop(ASUS W6)                        1
8.       Laptop(Lenovo E200)                    1
9.       Laptop(IBM T30)                        1
10.      PockPC (ASUS , A620)                   1
11.      Projector (Epson EMP-Tw10H)            1
12.      Copy Machine (Sansung SCX-4116)        1
13.      Multiple use  Fax Machine (HP4110)     2
14.      Printer (HP1010)                       1
15.      Office table                          18
16.      Bigger office table                    5
17.      Phones                                25
18.      Office Sofa                            4
19.      Book shelve                            5
20.      Meeting Table                          1
21.      Table Tennis Table                     1

                                       58
<PAGE>

                                  Schedule 3.7:

                          Real Estate Owned by Company

1. No. 78 1st Yanghe Village, Jiangbei District, Chongqing, China.

                                       59
<PAGE>

                                  Schedule 3.8:

                          Real Estate Leased by Company

                                      None

                                       60
<PAGE>

                                Schedule 3.9(a):

                     Encumbrances on Real Estate of Company

                                     None

                                       61
<PAGE>

                                Schedule 3.15(a):

                            Company Personnel Matters

                                       62
<PAGE>

                                Schedule 3.16(b):

                       Company Governmental Authorizations

                                      None

                                       63
<PAGE>

                                Schedule 3.18(a):

                                Company Contracts

1.       Sales Contract 3-1, dated July 3, 2006, between Chongqing Yinxin Realty
         Development  Ltd.  and  Chongqing  Qianbao  Technology  Ltd.,  for  the
         purchase  of offices  located at No. 78 1st  Yanghe  Village,  Jiangbei
         District, Chongqing, China.

2.       Sales Contract 3-2, dated July 3, 2006, between Chongqing Yinxin Realty
         Development  Ltd.  and  Chongqing  Qianbao  Technology  Ltd.,  for  the
         purchase  of offices  located at No. 78 1st  Yanghe  Village,  Jiangbei
         District, Chongqing, China.

3.       Sales Contract 3-2, dated July 3, 2006, between Chongqing Yinxin Realty
         Development  Ltd.  and  Chongqing  Qianbao  Technology  Ltd.,  for  the
         purchase  of offices  located at No. 78 1st  Yanghe  Village,  Jiangbei
         District, Chongqing, China.

4.       Form of Employment Agreement executed by Company's employees.

5.       Form of Confidentiality Agreement executed by Company's employees.

                                       64
<PAGE>

                                Schedule 3.18(c):

                       Enforceability of Company Contracts

                                      None

                                       65
<PAGE>

                                Schedule 3.18(d):

                        Compliance with Company Contracts

                                      None

                                       66
<PAGE>

                                Schedule 3.19(b):

        Third Party Obligations of Company to Provide Insurance Coverage

                                      None

                                       67
<PAGE>

                                Schedule 3.21(b):

                      Company Intellectual Property Matters

                                      None

                                       68
<PAGE>

                                Schedule 3.21(c):

                         Intellectual Property Licenses

                                      None

                                       69
<PAGE>

                                Schedule 3.21(e):

                                 Company Patents

                                      None

                                       70
<PAGE>

                                Schedule 3.21(h):

                                  Company Marks

                                      None

                                       71
<PAGE>

                                Schedule 3.21(i):

                               Company Copyrights

                                      None

                                       72
<PAGE>

                                Schedule 3.21(k):

                                Company Net Names

                                www.iamseller.com

                                       73
<PAGE>

                                 Schedule 3.22:

                             Company Related Persons

                                      None

                                       74
<PAGE>

                                 Schedule 3.23:

                                 Company Brokers

                                      None

                                       75
<PAGE>

                                  Schedule 4.7:

                                  Buyer Brokers

                                      None

                                       76
<PAGE>

                                  Schedule 7.3:

                            Company Material Consents

                                      None

                                       77
<PAGE>

                                  Schedule 8.3:

                             Buyer Material Consents

                                      None

                                       78Sales Contract of Commercial Housing 3-1

The two parties:

Party A (seller) Chongqing Yinxin Realty Development Ltd.
                 ----------------------------------------

Registered Address: 13th Floor, No.39,                Postal Code: 400010
                   -------------------                             -------
        Wusi Road, Yuzhong District, Chongqing
        --------------------------------------
Business Corporation License No.:                     Qualification License No.:
               5000002102555                                             0320235
               -------------                                             -------
Legal Representative: Zhaowen Tan                     Contact Tel: 67732651
                      -------------                                --------
Authorized Proxy:                                     Contact Tel: 67732998
                                                                   --------
Authorized Agent:                                     Qualification License No.:
Registered Address:                                   Postal Code:
Legal Representative:                                 Contact Tel:

Party B (buyer) Chongqing Qianbao Technology Ltd.
                ---------------------------------
Business Corporation License No.: 5001052107163       Nationality: Chinese
                                  -------------
Address: 11th Floor, No.78, 1st Yanghe Village, Jiangbei District, Chongqing
         -------------------------------------------------------------------
Postal Code: 400020                                   Contact Tel: 67757997
             ------                                                --------
Authorized Agent: Li Bao                              Nationality: Chinese
                  ------                                           -------
Address: 4-12, No.146, Zhangjia Garden Street, Yuzhong District, Chongqing
         -----------------------------------------------------------------
Postal Code: 400010                                   Contact Tel: 60599298
             ------                                                --------

According to the Contract Law of PRC,  Management Law of Realty of PRC and other
relevant  law  and   regulations,   on  the  basis  of  equal,   voluntary   and
consentaneous,  both parties sign this contract regarding the sale of commercial
housing.

Article I. Usufruct status of this commercial housing and title of the item
The land tenure of this commercial  housing is obtained by transfer and has been
legally  registered  as well as conferred  the realty title deed with the No. of
(97),  00428 and 1663.
Acreage  of the land is  4242m(2);  purpose of layout is integration; expiration
of the land tenure is May 21st, 2037.
The title of this  commercial  housing  is  Chongqing  International  Chamber of
Commerce.  The construction project layout license No. is 0249 and execution No.
is 4-40.

Article II. Sale proof of this commercial housing
The commercial housing sold by Party A is the following item 1:

<PAGE>

   1.   Marketable housing. Realty title deed No.: 10552
                                                   -----
   2.   Futures   marketable   housing.    Futures   marketable   housing
        License No.         , approval authority           .
                   ---------                    -----------

   Article III. Basic status of the commercial housing purchased by Party B

Location: No. 78, 1st Yanghe Village, Jiangbei District
--------------------------------------------------------------------------------

<TABLE>
<CAPTION>

            No.                                              Type        Construction acreage (m(2))
            of                        Room                   of      ----------------------------------   Unit
Building    stories   Cell   Floor    No.     Structure      flat    In wrap   apportionment   Subtotal   Price     Use
--------------------------------------------------------------------------------------------------------------------------
            <C>       <C>    <C>      <C>     <C>            <C>     <C>       <C>             <C>        <C>       <C>
            32               13       1-1    ferroconcrete           204.98     73.43          278.40     5432.73   office

</TABLE>

   Article IV. Calculation mode and price
   Both  parties  agreed to use the first mode of the following to calculate the
   price of commercial housing:
   1.  Calculated  by  in-wrap  construction  acreage,  the  total sum  of  this
       commercial housing is (yen)1113600.00.
                             ----------------
   2.  Calculated by cell, the total sum of this commercial housing is         .
                                                                      ---------

   Party A                                                               Party B

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}]]