Document:

AGREEMENT

         AGREEMENT, made this 2 day of September 2004, by and between ARTISTIC
COMMUNICATION CENTER, LTD., with it's principal place of business at 116 N.
Halsted Street, Chicago, Illinois 60661 (hereinafter referred to as ACC) and The
KNOCKOUT GROUP, INC. located at 100 W. Whitehall Avenue, Northlake, IL., 60164
(hereinafter known as CLIENT).

         WHEREAS, ACC has high quality film/video production capabilities and
CLIENT has expressed an interest in ACC making changes in the production and
editing of two (2) thirty minute infomercials for marketing a line of household
and automotive cleaning products;

         WHEREAS, CLIENT wishes to pursue and secure an arrangement for
producing and editing the aforementioned infomercials;

         NOW, THEREFORE, in consideration of the mutual promises contained
herein, it is agreed and understood as follows:

         CLIENT agrees:

          1.   To provide a general overview verbally plus written information
               including relevant changes in the script and production content
               relating to the project to allow ACC to become familiar with the
               elements and suggested structure of the infomercial changes

          2.   To host a round table discussion where key CLIENT participants
               can provide insight and details regarding specific content
               changes to be included in the infomercials

          3.   To review submitted written materials and rough cuts of the
               infomercial expeditiously and provide timely feedback to ACC

          4.   To assure all on camera personnel are available on time for
               scheduled taping sessions to assure quality taping and editing
               time for ACC TO professionally complete the infomercials in a
               timely manner

          5.   To have a project representative on location during the
               production. taping days to assure CLIENT approves "takes".

           ACC agrees:

          1.   To work with CLIENT in the development of a treatment and script
               for the infomercial changes for CLIENT'S approval.

          2.   To participate in and make suggestions regarding the best human
               resources for the infomercials

          3.   To professionally produce the aforementioned video changes
               utilizing the revised script as approved by CLIENT as the
               blueprint for production

          4.   To video tape the project using broadcast quality video camera
               and stock

<PAGE>

          5.   To create simplistic yet professional graphics and animation, as
               needed, to enhance overall production quality.

          6.   To professionally re-edit the aforementioned infomercials using
               traditional and innovative editing techniques utilizing the AVID
               9000 non-linear editing system and Discreet Smoke,

The projected cost to professionally produce, edit and deliver the changes to
the two thirty (30) minute infomercials (HOUSEHOLD AND AUTOMOTIVE) will be based
on actual cost plus a ten percent (10%) production fee. This includes director,
and demo director, producers, crew, casting, talent, cameras, location costs,
props, special equipment needs, graphics, remote production, audio production,
music usage, post production facilities, a Beta SP master and a VHS copy.

This Agreement does not include additional shooting of scenes or re-editing
scenes that are different from those indicated in the currently revised CLIENT
approved script.

This agreement shall be construed in accordance with the laws of the State of
Illinois governing contracts wholly executed and performed therein, and shall be
binding upon and inure to the benefit of the parties respective heirs,
executors, administrators and successors.

         IN WITNESS WHEREOF, the parties have caused this agreement to be
executed as of the date first indicated above.

ACCEPTED AND AGREED TO                             ACCEPTED AND AGREED TO:

/s/ Margery Botach                                 /s/ John Bellamy
------------------                                 ---------------------------
ARTISTIC COMMUNICATION                             THE KNOCKOUT GROUP, INC
CENTER, LTD.STOCK PURCHASE AGREEMENT

                                  BY AND AMONG

                          FRANKLIN CAPITAL CORPORATION,

                           THE PRINCIPAL SHAREHOLDERS

                                       AND

                             THE OTHER SHAREHOLDERS,

                    AS SET FORTH ON THE SIGNATURE PAGE HERETO

                          Dated as of December 29, 2004

<PAGE>

                                TABLE OF CONTENTS

Section                                                                    Page

ARTICLE I SALE AND PURCHASE OF SHARES........................................1
   1.1    Sale and Purchase of Shares........................................1

ARTICLE II PURCHASE PRICE AND PAYMENT........................................1
   2.1    Amount of Purchase Price...........................................1
   2.2    Payment of Purchase Price..........................................2

ARTICLE III CLOSING AND TERMINATION..........................................2
   3.1    Closing Date.......................................................2
   3.2    Termination of Agreement...........................................2
   3.3    Procedure Upon Termination.........................................2
   3.4    Effect of Termination..............................................3

ARTICLE IV REPRESENTATIONS AND WARRANTIES OF THE SELLERS.....................3
   4.1    Organization and Good Standing.....................................3
   4.2    Authorization of Agreement.........................................3
   4.3    Capitalization.....................................................3
   4.4    Capitalization.....................................................4
   4.5    No Subsidiaries....................................................4
   4.6    Conflicts; Consents of Third Parties...............................4
   4.7    Ownership and Transfer of Shares...................................4
   4.8    Financial Statements...............................................5
   4.9    No Undisclosed Liabilities.........................................5
   4.10   Absence of Certain Developments....................................5
   4.11   Taxes..............................................................6
   4.12   Real Property......................................................7
   4.13   Tangible Personal Property.........................................7
   4.14   Intangible Property................................................7
   4.15   Material Contracts.................................................7
   4.16   Employee Benefits..................................................8
   4.17   Labor..............................................................8
   4.18   Litigation.........................................................9
   4.19   Compliance with Laws; Permits......................................9
   4.20   Environmental Matters..............................................9
   4.21   Insurance.........................................................10
   4.22   Inventories; Receivables; Payables................................10
   4.23   Related Party Transactions........................................10
   4.24   No Misrepresentation..............................................11
   4.25  Financial Advisors.................................................11
   4.26   Patriot Act.......................................................11

ARTICLE V REPRESENTATIONS AND WARRANTIES OF PURCHASER.......................11
   5.1    Organization and Good Standing....................................11
   5.2    Authorization of Agreement........................................11
   5.3    Conflicts; Consents of Third Parties..............................12
   5.4    Litigation........................................................12
   5.5    Investment Intention..............................................12
   5.6    Financial Advisors................................................12
   5.7    Patriot Act.......................................................12
   5.8    No Misrepresentation..............................................13

                                       i
<PAGE>

ARTICLE VI COVENANTS........................................................13
   6.1    Access to Information.............................................13
   6.2    Consents..........................................................13
   6.3    Other Actions.....................................................13
   6.4    No Solicitation...................................................13
   6.5    Publicity.........................................................14
   6.6    Board of Directors................................................14
   6.7    Registration of Shares............................................14

ARTICLE VII CONDITIONS TO CLOSING...........................................14
   7.1    Conditions Precedent to Obligations of Purchaser..................14
   7.2    Conditions Precedent to Obligations of the Sellers................15

ARTICLE VIII DOCUMENTS TO BE DELIVERED......................................16
   8.1    Documents to be Delivered by the Sellers..........................16
   8.2    Documents to be Delivered by the Purchaser........................16

ARTICLE IX INDEMNIFICATION..................................................17
   9.1    Indemnification...................................................17
   9.2    Indemnification Procedures........................................18

ARTICLE X MISCELLANEOUS.....................................................18
   10.1   Payment of Sales, Use or Similar Taxes............................18
   10.2   Survival of Representations and Warranties........................19
   10.3   Expenses..........................................................19
   10.4   Specific Performance..............................................19
   10.5   Further Assurances................................................19
   10.6   Submission to Jurisdiction; Consent to Service of Process.........19
   10.7   Enitre Agreement, Amendment and Waivers...........................20
   10.8   Governing Law.....................................................20
   10.9   Table of Contents and Headings....................................20
   10.10  Notices...........................................................20
   10.11  Severability......................................................21
   10.12  Binding Effect; Assignment........................................21

                                       ii
<PAGE>

                            STOCK PURCHASE AGREEMENT

      STOCK PURCHASE AGREEMENT, dated as of December 29, 2004 (the "Agreement"),
by and among Franklin Capital Corporation, a corporation existing under the laws
of Delaware (the "Purchaser"), and the shareholders of Digicorp, a Utah
corporation (the "Company"), set forth in Section A hereto (the "Principal
Shareholders"), and the shareholders of the Company set forth in Section B of
the signature page hereto (the "Other Shareholders," and together with the
Principal Shareholders, the "Sellers").

                              W I T N E S S E T H:
                               - - - - - - - - - -

      WHEREAS, the Sellers own an aggregate of 2,294,527 shares of common stock,
$.001 par value of the Company (the "Common  Stock") to be sold pursuant to this
Agreement (the "Shares");

      WHEREAS,  the Sellers also own an aggregate of 1,224,000  shares of Common
Stock  which  must  be  registered  prior  to  their  sale by the  Sellers  (the
"Registrable Shares" and, together with the Shares, the "Total Shares"); and

      WHEREAS, the Sellers desire to sell to Purchaser, the Purchaser desires to
purchase from the Sellers,  the Total Shares for the purchase price and upon the
terms and conditions hereinafter set forth;

      NOW, THEREFORE,  in consideration of the premises and the mutual covenants
and agreements hereinafter contained, the parties hereby agree as follows:

                                   Article I
                           SALE AND PURCHASE OF SHARES

      1.1 Sale and Purchase of Shares.

      Upon the terms and  subject to the  conditions  contained  herein,  on the
Closing Date each Seller shall sell, assign, transfer, convey and deliver to the
Purchaser, and the Purchaser shall purchase from each Seller, the Shares of such
Seller set forth opposite such Seller's name in the column entitled "Shares Sold
on Signing of Agreement" on Schedule A hereto. Each Seller with Shares set forth
opposite  such Seller's name in the column  entitled  "Shares To Be  Registered"
further  agrees to sell the  Shares in such  column  upon  effectiveness  of the
Registration  Statement (as hereafter defined) (the "Registration Date"), in the
event the Registration Date is no more than 12 months from the date hereof.  The
purchase and sale of the Shares pursuant to this Agreement shall be effective as
of the close of business on December 29, 2004 (the "Effective Time"), except for
the  Registrable  Shares,  which shall be sold effective as of the  Registration
Date.

                                   Article II
                           PURCHASE PRICE AND PAYMENT

      2.1 Amount of Purchase Price.

      The  purchase  price for the Shares shall be an amount equal to (a) $0.135
per share for all Sellers selling 80% of their Total Shares,  in the amounts set
forth on Schedule A(1) hereto,  and (b) $0.145 per share for all Sellers selling
100% of their Total  Shares,  in the  amounts set forth on Schedule  A(2) hereto
(the "Purchase  Price").  The purchase price for the Registrable Shares shall be
$0.135 per share if the  Registration  Date is within  six months  from the date
hereof and shall be $0.145 if the  Registration  Date is between  six months and
twelve months from the date hereof.

<PAGE>

      2.2 Payment of Purchase Price.

      On the Closing  Date,  the Purchaser  shall pay the Purchase  Price to the
Sellers  which shall be paid by the  delivery to Sellers of a certified  or bank
cashier's checks in New York Clearing House Funds,  payable to the order of each
Seller or, at the Sellers'  option,  by wire transfer of  immediately  available
funds into accounts designated by the Sellers and allocated among the Sellers in
accordance  with their pro rata ownership of the Shares as set forth on Schedule
A hereto.

                                  Article III
                             CLOSING AND TERMINATION

      3.1 Closing Date.

      Subject to the  satisfaction  of the  conditions set forth in Sections 7.1
and 7.2  hereof  (or the  waiver  thereof  by the party  entitled  to waive that
condition),  the closing of the sale and purchase of the Shares  provided for in
Section 1.1 hereof (the "Closing")  shall take place at the offices of Sichenzia
Ross Friedman Ference LLP located at 1065 Avenue of the Americas,  New York, New
York 10018 (or at such other place as the parties may  designate  in writing) on
December 29, 2004,  or on such other date as the Sellers and the  Purchaser  may
determine.  The date on which the  Closing  shall be held is referred to in this
Agreement as the "Closing Date".

      3.2 Termination of Agreement.

      This Agreement may be terminated prior to the Closing as follows:

      (a) At the election of the Sellers or the  Purchaser on or after  December
31,  2004,  if the Closing  shall not have  occurred by the close of business on
such date,  provided that the terminating  party is not in default of any of its
obligations hereunder;

      (b) by mutual written consent of the Sellers and the Purchaser; or

      (c) by the  Seller or the  Purchaser  if there  shall be in effect a final
nonappealable  order of a court,  government or  governmental  agency or body of
competent jurisdiction ("Governmental Body") restraining, enjoining or otherwise
prohibiting the consummation of the transactions  contemplated  hereby; it being
agreed that the parties hereto shall promptly  appeal any adverse  determination
which is not nonappealable (and pursue such appeal with reasonable diligence).

      3.3 Procedure Upon Termination.

      In the  event of  termination  and  abandonment  by the  Purchaser  or the
Sellers, or both,  pursuant to Section 3.2 hereof,  written notice thereof shall
forthwith  be given to the other  party or  parties,  and this  Agreement  shall
terminate, and the purchase of the Shares hereunder shall be abandoned,  without
further action by the Purchaser or the Sellers.  If this Agreement is terminated
as provided  herein each party shall  redeliver all  documents,  work papers and
other  material of any other party  relating  to the  transactions  contemplated
hereby,  whether so obtained before or after the execution  hereof, to the party
furnishing the same.

                                       2
<PAGE>

      3.4 Effect of Termination.

      In the event that this Agreement is validly terminated as provided herein,
then each of the  parties  shall be  relieved  of their  duties and  obligations
arising  under  this  Agreement  after  the  date of such  termination  and such
termination  shall be without  liability  to the  Purchaser,  the Company or any
Seller;  provided,  however,  that the  obligations  of the parties set forth in
Section 10.4 hereof shall survive any such  termination and shall be enforceable
hereunder;  provided,  further,  however, that nothing in this Section 3.4 shall
relieve  the  Purchaser  or any  Seller  of any  liability  for a breach of this
Agreement.

                                   Article IV
                  REPRESENTATIONS AND WARRANTIES OF THE SELLERS

      The Principal  Shareholders hereby individually  represent and warrant and
the Other Shareholders,  individually represent and warrant to the best of their
knowledge, to the Purchaser that:

      4.1 Organization and Good Standing.

      The Company is a corporation duly organized,  validly existing and in good
standing under the laws of the  jurisdiction of its  incorporation  as set forth
above and has all  requisite  corporate  power and  authority to own,  lease and
operate  its  properties  and to carry on its  business  as now  conducted.  The
Company is duly qualified or authorized to do business as a foreign  corporation
and is in good standing under the laws of each  jurisdiction in which it owns or
leases real  property  and each other  jurisdiction  in which the conduct of its
business or the  ownership of its  properties  requires  such  qualification  or
authorization,  except  where the  failure to be so  qualified  would not have a
material  adverse  effect on the  business,  assets or  financial  condition  of
Company taken as a whole ("Material Adverse Effect").

      4.2 Authorization of Agreement.

      Each  Seller has all  requisite  power,  authority  and legal  capacity to
execute and deliver  this  Agreement,  and each other  agreement,  document,  or
instrument or  certificate  contemplated  by this Agreement or to be executed by
such Seller in connection with the consummation of the transactions contemplated
by this Agreement (together with this Agreement, the "Seller Documents"), and to
consummate the transactions  contemplated hereby and thereby. This Agreement has
been, and each of the Seller Documents will be at or prior to the Closing,  duly
and  validly  executed  and  delivered  by each  Seller  and  (assuming  the due
authorization,  execution and delivery by the other parties  hereto and thereto)
this Agreement  constitutes,  and each of the Seller  Documents when so executed
and delivered  will  constitute,  legal,  valid and binding  obligations of each
Seller,  enforceable  against each Seller in  accordance  with their  respective
terms, subject to applicable bankruptcy, insolvency, reorganization,  moratorium
and  similar  laws  affecting  creditors'  rights and  remedies  generally,  and
subject,  as to  enforceability,  to general  principles  of  equity,  including
principles of commercial reasonableness, good faith and fair dealing (regardless
of whether enforcement is sought in a proceeding at law or in equity).

      4.3 Reporting Status; Listing.

      The Company is required to file current  reports with the  Securities  and
Exchange Commission pursuant to Section 12(g) of the Securities and Exchange Act
of 1934, as amended,  the Company's shares of common stock are quoted on the OTC
"Bulletin  Board",  and all reports required to be filed by the Company with the
Securities and Exchange Commission ("SEC") or National Association of Securities
Dealers  ("NASD") or the OTC Bulletin Board have been timely filed.  The Company
has no  outstanding  comment  letters from the SEC, the NASD or the OTC Bulletin
Board.

                                       3
<PAGE>

      4.4 Capitalization.

            (a)  The  authorized  capital  stock  of  the  Company  consists  of
50,000,000 shares of common Stock,  $.001 par value (the "Common Stock").  As of
the date  hereof,  there are  9,742,857  shares of Common  Stock  issued  and no
outstanding  shares of Common  Stock are held by the Company as treasury  stock.
All of the issued and  outstanding  shares of Common Stock were duly  authorized
for issuance and are validly issued, fully paid and non-assessable.

            (b) Except as disclosed in the Company's SEC reports filed  pursuant
the Securities Act of 1934, as amended (the "SEC Reports"), there is no existing
option,  warrant, call, right, commitment or other agreement of any character to
which  any  Seller  or the  Company  is a  party  requiring,  and  there  are no
securities of the Company  outstanding  which upon  conversion or exchange would
require,  the  issuance,  sale or transfer of any  additional  shares of capital
stock or other equity securities of the Company or other securities  convertible
into,  exchangeable  for or  evidencing  the right to subscribe  for or purchase
shares of capital stock or other equity  securities of the Company.  None of the
Sellers nor the Company is a party to any voting trust or other voting agreement
with respect to any of the shares of Common Stock or to any  agreement  relating
to the issuance, sale, redemption,  transfer or other disposition of the capital
stock of the Company.

      4.5 Subsidiaries.

      The Company has no subsidiaries.

      4.6 Conflicts; Consents of Third Parties.

            (a) None of the  execution  and  delivery by any Seller,  the Seller
Documents, the consummation of the transactions  contemplated hereby or thereby,
or  compliance by any Seller with any of the  provisions  hereof or thereof will
(i) conflict with, or result in the breach of, any provision of the  certificate
of incorporation or by-laws of the Company; (ii) conflict with, violate,  result
in the breach or termination  of, or constitute a default under any note,  bond,
mortgage,  indenture,  license,  agreement or other  instrument or obligation to
which the Company is a party or by which any of them or any of their  respective
properties  or assets is bound;  (iii)  violate any statute,  rule,  regulation,
order or decree of any  governmental  body or  authority by which the Company is
bound; or (iv) result in the creation of any lien,  charge or encumbrance or any
kind or nature ("Lien") upon the properties or assets of the Company except,  in
case of clauses (ii), (iii) and (iv), for such violations,  breaches or defaults
as would not, individually or in the aggregate, have a Material Adverse Effect.

            (b) No consent, waiver, approval, order, permit or authorization of,
or  declaration  or filing  with,  or  notification  to, any  person,  entity or
governmental  body is  required  on the part of any  Seller  or the  Company  in
connection  with the  execution  and  delivery of the Seller  Documents,  or the
compliance  by each  Seller or the  Company as the case may be,  with any of the
provisions hereof or thereof.

      4.7 Ownership and Transfer of Shares.

      Each Seller is the record and beneficial  owner of the Shares indicated as
being  owned by such  Seller on Schedule A, free and clear of any and all Liens.
Each Seller has the power and  authority to sell,  transfer,  assign and deliver
such Shares as provided in this Agreement,  and such delivery will convey to the
Purchaser  good and marketable  title to such Shares,  free and clear of any and
all Liens.

                                       4
<PAGE>

      4.8 Financial Statements.

      The  Company's  Financial  Statements  present  fairly,  in  all  material
respects, the assets and liabilities (whether accrued,  absolute,  contingent or
otherwise) of the Company,  on a consolidated  basis, as of the respective dates
thereof,  and the sales and  earnings of the Company  during the period  covered
thereby,  in all  material  respects  and  have  been  prepared  in  substantial
accordance with generally accepted accounting  principles ("GAAP")  consistently
applied.

      4.9 No Undisclosed Liabilities.

      The Company has no  indebtedness,  obligations  or liabilities of any kind
(whether  accrued,  absolute,  contingent  or  otherwise,  and whether due or to
become due) that would have been required to be reflected in,  reserved  against
or otherwise described in the Company's Financial  Statements in accordance with
GAAP which was not fully reflected in, reserved  against or otherwise  described
in the Company's Financial Statements or was not incurred in the ordinary course
of business consistent with past practice since September 30, 2004.

      4.10 Absence of Certain Developments.  Except as expressly contemplated by
this Agreement, since September 30, 2004:

                  (i)  there  has not been any  Material  Adverse  Event nor has
there  occurred  any event  which is  reasonably  likely to result in a Material
Adverse Event;

                  (ii)  there  has not been  any  damage,  destruction  or loss,
whether or not covered by insurance,  with respect to the property and assets of
the Company  having a replacement  cost of more than $25,000 for any single loss
or $50,000 for all such losses;

                  (iii)  there has not been any  declaration,  setting  aside or
payment  of any  dividend  or other  distribution  in  respect  of any shares of
capital stock of the Company or any repurchase,  redemption or other acquisition
by any Seller or the Company of any outstanding shares of capital stock or other
securities of, or other ownership interest in, the Company;

                  (iv)  the  Company  has not  awarded  or paid any  bonuses  to
employees of the Company or entered into any employment,  deferred compensation,
severance or similar  agreement  (nor amended any such  agreement)  or agreed to
increase  the  compensation  payable  or to become  payable  by it to any of the
Company's directors, officers, employees, agents or representatives or agreed to
increase the coverage or benefits available under any severance pay, termination
pay,  vacation pay, company awards,  salary  continuation  for disability,  sick
leave, deferred compensation, bonus or other incentive compensation,  insurance,
pension or other employee  benefit plan,  payment or arrangement made to, for or
with such directors, officers, employees, agents or representatives,  other than
in the ordinary course of business consistent with past practice and that in the
aggregate  have  not  resulted  in  a  material  increase  in  the  benefits  or
compensation expense of the Company taken as a whole;

                  (v) there has not been any change by the Company in accounting
or tax reporting principles, methods or policies;

                  (vi) the  Company  has not  entered  into any  transaction  or
Contract or conducted its business other than in the ordinary course  consistent
with past practice;

                                       5
<PAGE>

                  (vii) the Company has not failed to promptly pay and discharge
current   liabilities  except  where  disputed  in  good  faith  by  appropriate
proceedings;

                  (viii)  Company  has not made any loans,  advances  or capital
contributions  to, or investments in, any person or paid any fees or expenses to
any Seller or any  Affiliate  (as defined in Section  4.14) of any Seller  other
than in the ordinary course consistent with past practice;

                  (ix) the Company has not  mortgaged,  pledged or  subjected to
any  Lien  any  of its  assets,  or  acquired  any  assets  or  sold,  assigned,
transferred,  conveyed,  leased  or  otherwise  disposed  of any  assets  of the
Company,  except for assets acquired or sold, assigned,  transferred,  conveyed,
leased or otherwise  disposed of in the ordinary  course of business  consistent
with past practice;

                  (x) the Company has not  discharged  or satisfied any Lien, or
paid any obligation or liability  (fixed or contingent),  except in the ordinary
course of business  consistent  with past practice and which,  in the aggregate,
would not be material to the Company taken as a whole;

                  (xi) the Company has not canceled or  compromised  any debt or
claim or amended,  canceled,  terminated,  relinquished,  waived or released any
Contract or right except in the ordinary course of business consistent with past
practice and which, in the aggregate, would not be material to the Company taken
as a whole;

                  (xii)  the  Company  has not  made or  committed  to make  any
capital  expenditures  or capital  additions or betterments in excess of $20,000
individually or $40,000 in the aggregate;

                  (xiii) the Company has not  instituted or settled any material
legal proceeding; and

                  (xiv) none of the  Sellers  nor the  Company  has agreed to do
anything set forth in this Section 4.10.

      4.11 Taxes.

            (a) The  Company  (A) has filed all tax  returns it was  required to
file under  applicable  laws and  regulations.  All such tax returns  were true,
correct  and  complete in all  respects  and have been  prepared in  substantial
compliance  with all  applicable  laws  and  regulations,  except  as to the net
operating  loss,  which amount is correctly  stated on the Company's most recent
10K; (B) has filed all taxes due and owing  (including  interest and  penalties)
from the  Company  have been fully and timely  paid,  and  adequate  reserves or
accruals for Taxes payable for the current  period for which Tax returns are not
yet required have been provided;  and (C) has not executed or filed with the IRS
or any  other  taxing  authority  any  agreement,  waiver or other  document  or
arrangement  extending  or  having  the  effect  of  extending  the  period  for
assessment or collection of Taxes (including, but not limited to, any applicable
statute of limitation),  and no power of attorney with respect to any tax matter
is currently in force. "Tax or Taxes" means all Federal,  state,  local or other
taxes or similar government charges, fees levies, or assessments.

            (b) The  Company  has  complied in all  material  respects  with all
applicable Laws (as defined in Section 4.19), rules and regulations  relating to
the  payment  and  withholding  of Taxes and has duly and timely  withheld  from
employee  salaries,  wages  and  other  compensation  and has  paid  over to the
appropriate  taxing  authorities all amounts required to be so withheld and paid
over for all periods under all applicable  laws,  except where the failure to so
comply would not have a material adverse effect on the Company.

                                       6
<PAGE>

            (c) There are no Liens as a result  of an unpaid  Taxes  upon any of
the assets of the Company.

      4.12 Real Property.

      The Company does not own any real  property nor does it have any interests
in real property leases.

      4.13 Tangible Personal Property.

      The  Company  has no personal  property  leases and no  tangible  personal
property.

      4.14 Intangible Property.

      The SEC  Reports  contain a complete  and  correct  list of each  material
patent,  trademark,  trade name,  service  mark and  copyright  owned or used by
Company as well as all registrations thereof and pending applications  therefor,
and each license or other agreement relating thereto. Except as disclosed in the
SEC Reports,  each of the foregoing is owned by the party shown on such Schedule
as owning the same,  free and clear of all mortgages,  claims,  liens,  security
interests,  charges and encumbrances and is in good standing and not the subject
of any  challenge.  There have been no claims made and neither the Sellers,  nor
the Company has received any notice or otherwise  knows or has reason to believe
that any of the  foregoing is invalid or conflicts  with the asserted  rights of
others.  The Company possesses,  owns or licenses all patents,  patent licenses,
trade names,  trademarks,  service marks, brand marks, brand names,  copyrights,
know-how,  formulate and other  proprietary  and trade rights  necessary for the
conduct of its business as now conducted,  not subject to any  restrictions  and
without  any known  conflict  with the rights of others and the  Company has not
forfeited or otherwise relinquished any such patent, patent license, trade name,
trademark, service mark, brand mark, brand name, copyright,  know-how, formulate
or  other  proprietary  right  necessary  for the  conduct  of its  business  as
conducted on the date hereof. The Company is not under any obligation to pay any
royalties or similar  payments in  connection  with any license to any Seller or
any Affiliate thereof.  "Affiliate" means, with respect to any person, any other
person  directly  or  indirectly  controlling,  controlled  by, or under  common
control  with such person and for  purposes  of  individuals,  Affiliates  would
include an individual's spouse and minor children.

      4.15 Material Contracts.

      The SEC  Reports  set forth all of the  following  contracts,  agreements,
commitments  ("Contracts")  to which  the  Company  is a party or by which it is
bound (collectively, the "Material Contracts"): (i) Contracts with the Seller or
any current  officer or director of the Company;  (ii)  Contracts with any labor
union or association  representing any employee of the Company;  (iii) Contracts
pursuant to which any party is required to purchase or sell a stated  portion of
its requirements or output from or to another party; (iv) Contracts for the sale
of any of the  assets  of the  Company  other  than in the  ordinary  course  of
business or for the grant to any person of any  preferential  rights to purchase
any of its  assets;  (v)  joint  venture  agreements;  (vi)  Material  Contracts
containing  covenants  of the  Company not to compete in any line of business or
with any person in any geographical area or covenants of any other person not to
compete  with the Company in any line of business or in any  geographical  area;
(vii)  Contracts  relating to the  acquisition  by the Company of any  operating
business or the capital stock of any other person;  (viii) Contracts relating to
the borrowing of money;  or (ix) any other  Contracts,  other than Real Property
Leases,  which,  in each case,  involve the  expenditure of more than $50,000 in
total or $25,000 annually or require performance by any party more than one year
from the date  hereof.  There have been made  available  to the  Purchaser,  its

                                       7
<PAGE>

Affiliates  and their  representatives  true and  complete  copies of all of the
Material Contracts.  Except as disclosed in the SEC Reports, all of the Material
Contracts and other  agreements  are in full force and effect and are the legal,
valid  and  binding  obligation  of the  Company,  enforceable  against  them in
accordance  with  its  terms,  subject  to  applicable  bankruptcy,  insolvency,
reorganization,  moratorium  and similar laws  affecting  creditors'  rights and
remedies generally and subject,  as to enforceability,  to general principles of
equity (regardless of whether enforcement is sought in a proceeding at law or in
equity).  Except as disclosed in the SEC Reports,  the Company is not in default
in any material respect under any Material  Contracts,  nor, to the knowledge of
any Seller, is any other party to any Material Contract in default thereunder in
any material respect.

      4.16 Employee Benefits.

            (a) The SEC Reports set forth a complete and correct list of (i) all
"employee benefit plans", as defined in Section 3(3) of the Employee  Retirement
Income Security Act of 1974, as amended  ("ERISA"),  and any other pension plans
or employee  benefit  arrangements,  programs or payroll  practices  (including,
without  limitation,   severance  pay,  vacation  pay,  company  awards,  salary
continuation  for disability,  sick leave,  retirement,  deferred  compensation,
bonus or other incentive compensation,  stock purchase arrangements or policies,
hospitalization,  medical  insurance,  life insurance and scholarship  programs)
maintained by the Company or to which the Company contributes or is obligated to
contribute  thereunder  with  respect to  employees  of the  Company  ("Employee
Benefit  Plans") and (ii) all "employee  pension  plans",  as defined in Section
3(2) of ERISA,  maintained  by the Company or any trade or business  (whether or
not  incorporated)  which are under  control,  or which are  treated as a single
employer,  with Company  under  Section  414(b),  (c), (m) or (o) of the ("ERISA
Affiliate") or to which the Company,  or any ERISA  Affiliate  contributed or is
obligated to contribute thereunder ("Pension Plans").

            (b) All  contributions  and premiums required by Law or by the terms
of any Employee  Benefit Plan or Pension Plan which are defined benefit plans or
money  purchase  plans or any agreement  relating  thereto have been timely made
(without  regard to any waivers  granted with  respect  thereto) to any funds or
trusts  established  thereunder or in connection  therewith,  and no accumulated
funding  deficiencies  exist in any of such plans  subject to Section 412 of the
Code.

            (c) There has been no  violation of ERISA with respect to the filing
of  applicable  returns,  reports,  documents  and notices  regarding any of the
Employee  Benefit  Plans or  Pension  Plans with the  Secretary  of Labor or the
Secretary of the Treasury or the  furnishing of such notices or documents to the
participants or beneficiaries of the Employee Benefit Plans or Pension Plans.

      4.17 Labor.

            (a) The Company is not a party to any labor or collective bargaining
agreement  and  there are no labor or  collective  bargaining  agreements  which
pertain to employees of the Company.

            (b) No  employees  of  the  Company  are  represented  by any  labor
organization.  No labor  organization  or group of  employees of the Company has
made  a  pending  demand  for  recognition,  and  there  are  no  representation
proceedings or petitions seeking a representation  proceeding  presently pending
or, to the best  knowledge  of the Sellers,  threatened  to be brought or filed,
with the National Labor Relations Board or other labor relations tribunal. There
is no known  organizing  activity  involving the Company pending or, to the best
knowledge  of any  Seller,  threatened  by any  labor  organization  or group of
employees of the Company.

                                       8
<PAGE>

            (c) There are no (i) strikes, work stoppages, slowdowns, lockouts or
arbitrations or (ii) material  grievances or other labor disputes pending or, to
the best knowledge of any Seller,  threatened  against or involving the Company.
There are no unfair labor practice charges, grievances or complaints pending or,
to the best knowledge of any Seller,  threatened by or on behalf of any employee
or group of employees of the Company.

      4.18 Litigation.

      Except  as  disclosed  in the  SEC  Reports,  there  is no  suit,  action,
proceeding,  investigation,  claim or order  pending or, to the knowledge of the
Sellers or the  Company,  overtly  threatened  against  the  Company  (or to the
knowledge of the Sellers or the Company,  pending or threatened,  against any of
the  officers,  directors or key  employees of the Company with respect to their
business  activities on behalf of the  Company),  or to which the Sellers or the
Company is  otherwise a party,  which,  if  adversely  determined,  would have a
Material   Adverse  Effect,   before  any  court,  or  before  any  governmental
department, commission, board, agency, or instrumentality;  nor to the knowledge
of the  Sellers  nor the  Company  is there  any  reasonable  basis for any such
action,  proceeding,  or  investigation.  The  Company  is  not  subject  to any
judgment,  order or  decree of any court or  governmental  agency  except to the
extent the same are not reasonably  likely to have a Material Adverse Effect and
the Company is not engaged in any legal  action to recover  monies due it or for
damages sustained by it.

      4.19 Compliance with Laws; Permits.

            (a) The Company is in compliance  with all Federal,  state and local
statutes,  laws,  rules,  regulations,  orders and ordinances  applicable to the
Company or to the conduct of the  business or  operations  of the Company or the
use of their respective  properties (including any leased properties) and assets
("Laws"),  except for such non-compliances as would not,  individually or in the
aggregate,  have a Material Adverse Effect. The Company and has all governmental
permits  and  approvals  from  state,  federal  or local  authorities  which are
required for the Company to operate its  business,  except for those the absence
of which would not,  individually or in the aggregate,  have a Material  Adverse
Effect.

      4.20 Environmental Matters.

            (a)  The  operations  of the  Company  are in  compliance  with  all
applicable Laws promulgated by any governmental entity which prohibit,  regulate
or  control  any  hazardous   material  or  any  hazardous   material   activity
("Environmental  Laws") and all permits issued pursuant to Environmental Laws or
otherwise  except for where  noncompliance  or the absence of such permits would
not,  individually or in the aggregate,  have a Material Adverse Effect;

            (b)  The  Company  has  obtained  all  permits  required  under  all
applicable Environmental Laws necessary to operate its business;

            (c) The Company is not the subject of any outstanding  written order
or Contract with any governmental  authority or person respecting  Environmental
Laws or any violation or potential violations thereof;

                                       9
<PAGE>

            (d) The Company has not received any written communication  alleging
either or both that the Company may be in violation of any Environmental Law, or
any permit issued pursuant to Environmental Law, or may have any liability under
any Environmental Law;

      4.21 Insurance.

      The Company has sufficient  policies of insurance  covering the Company or
any of its  respective  employees,  properties  or  assets,  including,  without
limitation,  policies of life,  disability,  fire, theft, workers  compensation,
employee fidelity and other casualty and liability insurance.  All such policies
are in full force and effect, and, to the Sellers' knowledge, the Company is not
in default of any  provision  thereof,  except for such  defaults  as would not,
individually or in the aggregate, have a Material Adverse Effect.

      4.22 Inventories; Receivables; Payables.

            (a)  The  inventories  of the  Company  are in good  and  marketable
condition,  and are  saleable  in the  ordinary  course  of  business.  Adequate
reserves have been reflected in the Company's Financial  Statements for obsolete
or otherwise  unusable  inventory,  which  reserves were  calculated in a manner
consistent with past practice and in accordance with GAAP consistently applied.

            (b) All  accounts  receivable  of the Company  have arisen from bona
fide  transactions  in the  ordinary  course of  business  consistent  with past
practice.  All accounts  receivable  of the Company  reflected in the  Company's
Financial  Statements are good and collectible at the aggregate recorded amounts
thereof,  net of  any  applicable  reserve  for  returns  or  doubtful  accounts
reflected  thereon,  which reserves are adequate and were calculated in a manner
consistent with past practice and in accordance with GAAP consistently  applied.
All  accounts   receivable  arising  since  September  30,  2004  are  good  and
collectible at the aggregate  recorded  amounts  thereof,  net of any applicable
reserve for returns or doubtful  accounts,  which reserves are adequate and were
calculated in a manner consistent with past practice and in accordance with GAAP
consistently applied.

            (c) All accounts  payable of the Company  reflected in the Company's
Financial  Statements  or arising  after the date thereof are the result of bona
fide  transactions  in the ordinary course of business and have been paid or are
not yet due and payable in accordance with the Company's past practices.

      4.23 Related Party Transactions.

      Except as  disclosed  in the SEC  Reports,  neither the Sellers nor any of
their respective  Affiliates has borrowed any moneys from or has outstanding any
indebtedness or other similar obligations to the Company. Except as disclosed in
the SEC Reports,  neither the Sellers, the Company, any Affiliate of the Company
or the Sellers nor any officer or employee of any of them (i) owns any direct or
indirect  interest  of any kind  in,  or  controls  or is a  director,  officer,
employee or partner of, or  consultant  to, or lender to or borrower from or has
the  right  to  participate  in  the  profits  of,  any  person  which  is (A) a
competitor,  supplier,  customer,  landlord,  tenant,  creditor or debtor of the
Company,  (B) engaged in a business  related to the business of the Company,  or
(C) a participant in any  transaction to which the Company is a party or (ii) is
a party to any Contract with the Company.

                                       10
<PAGE>

      4.24 No Misrepresentation.

      No representation or warranty of any Seller contained in this Agreement or
in any schedule  hereto or in any certificate or other  instrument  furnished by
any Seller to the Purchaser pursuant to the terms hereof, knowingly contains any
untrue  statement of a material fact or knowingly omits to state a material fact
necessary to make the statements contained herein or therein not misleading.

      4.25 Financial Advisors.

      No person  has  acted,  directly  or  indirectly,  as a broker,  finder or
financial  advisor  for the  Sellers  or the  Company  in  connection  with  the
transactions contemplated by this Agreement and no person is entitled to any fee
or commission or like payment in respect thereof.

      4.26 Patriot Act.

      The Sellers  certify  that,  to the best of the  Sellers'  knowledge,  the
Company has not been designated, and is not owned or controlled, by a "suspected
terrorist" as defined in Executive Order 13224.  The Sellers hereby  acknowledge
that the Purchaser  seeks to comply with all applicable  Laws  concerning  money
laundering and related activities.  In furtherance of those efforts, the Sellers
hereby represent, warrant and agree that: (i) none of the cash or property owned
by the Company has been or shall be derived  from,  or related to, any  activity
that is deemed  criminal  under United States law; and (ii) no  contribution  or
payment by the Company has, and this  Agreement  will not,  cause the Company or
the  Purchaser  to be in  violation  of the United  States Bank Secrecy Act, the
United States  International  Money Laundering Control Act of 1986 or the United
States International Money Laundering Abatement and Anti-Terrorist Financing Act
of 2001.

                                   ARTICLE V
                   REPRESENTATIONS AND WARRANTIES OF PURCHASER

      5.1 Organization and Good Standing.

      The Purchaser is a corporation  duly  organized,  validly  existing and in
good standing under the laws of the State of Delaware.

      5.2 Authorization of Agreement.

      The  Purchaser  has full  corporate  power and  authority  to execute  and
deliver  this  Agreement  and each  other  agreement,  document,  instrument  or
certificate contemplated by this Agreement or to be executed by the Purchaser in
connection with the  consummation of the  transactions  contemplated  hereby and
thereby  (the  "Purchaser  Documents"),   and  to  consummate  the  transactions
contemplated hereby and thereby. The execution,  delivery and performance by the
Purchaser  of  this  Agreement  and  each  Purchaser  Document  have  been  duly
authorized by all necessary  corporate  action on behalf of the Purchaser.  This
Agreement  has  been,  and each  Purchaser  Document  will be at or prior to the
Closing,  duly  executed and  delivered by the  Purchaser  and (assuming the due
authorization,  execution and delivery by the other parties  hereto and thereto)
this Agreement  constitutes,  and each  Purchaser  Document when so executed and
delivered  will  constitute,   legal,  valid  and  binding  obligations  of  the
Purchaser, enforceable against the Purchaser in accordance with their respective
terms, subject to applicable bankruptcy, insolvency, reorganization,  moratorium
and  similar  laws  affecting  creditors'  rights and  remedies  generally,  and
subject,  as to  enforceability,  to general  principles  of  equity,  including
principles of commercial reasonableness, good faith and fair dealing (regardless
of whether enforcement is sought in a proceeding at law or in equity).

                                       11
<PAGE>

      5.3 Conflicts; Consents of Third Parties.

            (a) Neither of the  execution  and delivery by the Purchaser of this
Agreement and of the Purchaser  Documents,  nor the  compliance by the Purchaser
with any of the  provisions  hereof or thereof will (i) conflict with, or result
in the breach of, any provision of the certificate of  incorporation  or by-laws
of the  Purchaser,  (ii)  conflict  with,  violate,  result in the breach of, or
constitute  a default  under  any  note,  bond,  mortgage,  indenture,  license,
agreement or other  obligation to which the Purchaser is a party or by which the
Purchaser or its  properties  or assets are bound or (iii)  violate any statute,
rule, regulation, order or decree of any governmental body or authority by which
the Purchaser is bound,  except, in the case of clauses (ii) and (iii), for such
violations, breaches or defaults as would not, individually or in the aggregate,
have  a  material  adverse  effect  on  the  business,  properties,  results  of
operations,  prospects, conditions (financial or otherwise) of the Purchaser and
its subsidiaries, taken as a whole.

            (b) No consent, waiver, approval, order, permit or authorization of,
or declaration or filing with, or  notification  to, any person or  Governmental
Body is required on the part of the Purchaser in  connection  with the execution
and delivery of this  Agreement or the Purchaser  Documents or the compliance by
Purchaser with any of the provisions hereof or thereof.

      5.4 Litigation.

      There are no Legal  Proceedings  pending or, to the best  knowledge of the
Purchaser,  threatened  that are  reasonably  likely to prohibit or restrain the
ability  of  the  Purchaser  to  enter  into  this   Agreement   consummate  the
transactions contemplated hereby.

      5.5 Investment Intention.

      The Purchaser is acquiring the Shares for its own account,  for investment
purposes only and not with a view to the  distribution  (as such term is used in
Section 2(11) of the Securities Act of 1933, as amended (the  "Securities  Act")
thereof.  Purchaser  understands  that the Shares have not been registered under
the Securities Act and cannot be sold unless  subsequently  registered under the
Securities Act or an exemption from such registration is available.

      5.6 Financial Advisors.

      No person  has  acted,  directly  or  indirectly,  as a broker,  finder or
financial  advisor  for  the  Purchaser  in  connection  with  the  transactions
contemplated  by  this  Agreement  and no  person  is  entitled  to  any  fee or
commission or like payment in respect thereof.

      5.7 Patriot Act.

      The Purchaser  certifies that, to the best of the  Purchaser's  knowledge,
the  Purchaser has not been  designated,  and is not owned or  controlled,  by a
"suspected  terrorist" as defined in Executive Order 13224. The Purchaser hereby
acknowledges that the Sellers and the Company seek to comply with all applicable
laws concerning money laundering and related activities. In furtherance of those
efforts, the Purchaser hereby represents,  warrants and agrees that: (i) none of
the cash or property  owned by the  Purchaser has been or shall be derived from,
or related to, any activity that is deemed criminal under United States law; and
(ii) no  contribution  or payment by the Purchaser  has, and this Agreement will
not,  cause the  Purchaser to be in violation of the United  States Bank Secrecy
Act, the United States International Money Laundering Control Act of 1986 or the
United  States  International  Money  Laundering  Abatement  and  Anti-Terrorist
Financing Act of 2001.

                                       12
<PAGE>

      5.8 No Misrepresentations.

      No representation or warranty of the Purchaser contained in this Agreement
or in any schedule hereto or in any certificate or other instrument furnished by
the Purchaser to the Sellers  pursuant to the terms hereof,  knowingly  contains
any untrue  statement of a material fact or knowingly  omits to state a material
fact  necessary  to  make  the  statements   contained  herein  or  therein  not
misleading.

                                   ARTICLE VI
                                    COVENANTS

      6.1 Access to Information.

      The Sellers agree that,  prior to the Closing Date, the Purchaser shall be
entitled,  through  its  officers,  employees  and  representatives  (including,
without  limitation,   its  legal  advisors  and  accountants),   to  make  such
investigation  of the  properties,  businesses and operations of the Company and
such examination of the books, records and financial condition of the Company as
it  reasonably  requests  and to make  extracts  and  copies  of such  books and
records.  Any such  investigation  and  examination  shall be  conducted  during
regular business hours and under reasonable circumstances, and the Sellers shall
cooperate,  and  shall  cause  the  Company  to  cooperate,  fully  therein.  No
investigation  by the  Purchaser  prior to or after  the date of this  Agreement
shall diminish or obviate any of the representations,  warranties,  covenants or
agreements of the Sellers contained in the Seller  Documents.  In order that the
Purchaser may have full opportunity to make such physical, business,  accounting
and legal review,  examination or investigation as it may reasonably  request of
the affairs of the Company,  the Sellers  shall cause the  officers,  employees,
consultants,  agents,  accountants,  attorneys and other  representatives of the
Company to cooperate  fully with such  representatives  in connection  with such
review and examination.

      6.2 Consents.

      The  Sellers  shall  use  their  best  efforts,  and the  Purchaser  shall
cooperate  with the  Sellers,  to obtain at the  earliest  practicable  date all
consents and approvals  required to consummate the transactions  contemplated by
this  Agreement,  including,  without  limitation,  the consents  and  approvals
referred  to in Section  4.6(b)  hereof;  provided,  however,  that  neither the
Sellers nor the Purchaser shall be obligated to pay any  consideration  therefor
to any third party from whom consent or approval is requested.

      6.3 Other Actions.

      Each of the Sellers and the  Purchaser  shall use its best  efforts to (i)
take all  actions  necessary  or  appropriate  to  consummate  the  transactions
contemplated  by this  Agreement and (ii) cause the  fulfillment at the earliest
practicable  date of all of the  conditions to their  respective  obligations to
consummate the transactions contemplated by this Agreement.

      6.4 No Solicitation.

      The Sellers  will not,  and will not cause or permit the Company or any of
the  Company's  directors,   officers,  employees,   representatives  or  agents
(collectively,  the "Representatives") to, directly or indirectly,  (i) discuss,
negotiate, undertake, authorize, recommend, propose or enter into, either as the
proposed surviving,  merged, acquiring or acquired corporation,  any transaction
involving a merger, consolidation, business combination, purchase or disposition
of any amount of the assets or capital  stock or other  equity  interest  in the
Company  other  than  the  transactions   contemplated  by  this  Agreement  (an
"Acquisition  Transaction"),  (ii)  facilitate,  encourage,  solicit or initiate
discussions, negotiations or submissions of proposals or offers in respect of an
Acquisition Transaction,  (iii) furnish or cause to be furnished, to any person,
any information concerning the business, operations, properties or assets of the
Company  in  connection  with an  Acquisition  Transaction,  or  (iv)  otherwise
cooperate in any way with, or assist or participate in, facilitate or encourage,
any effort or attempt  by any other  person to do or seek any of the  foregoing.
The Sellers  will inform the  Purchaser  in writing  immediately  following  the
receipt by any Seller,  the  Company or any  Representative  of any  proposal or
inquiry in respect of any Acquisition Transaction.

                                       13
<PAGE>

      6.5 Publicity.

      None of the Sellers  nor the  Purchaser  shall issue any press  release or
public announcement  concerning this Agreement or the transactions  contemplated
hereby without  obtaining the prior written  approval of the other party hereto,
which approval will not be unreasonably withheld or delayed, unless, in the sole
judgment of the Purchaser or the Sellers,  disclosure  is otherwise  required by
applicable  Law or by the  applicable  rules of any stock  exchange on which the
Purchaser lists securities,  provided that, to the extent required by applicable
Law the  party  intending  to make  such  release  shall  use its  best  efforts
consistent with such applicable Law to consult with the other party with respect
to the text thereof.

      6.6 Board of Directors.

      t 12 (a)  Prior to the  Effective  Time,  the  Board of  Directors  of the
Company  ("Board of  Directors")  shall take all  necessary  action to cause the
Board of Directors,  as of the Effective  Time, to appoint  Melanie  Glazer as a
director of the Company.

            (b) At  least  ten days  after  the  Effective  Time,  the  Board of
Directors shall take all necessary action to cause the Board of Directors, as of
the  Effective  Time,  to appoint  Darrell  Grimsley,  Jr. as a director  of the
Company.

      6.7 Registration Rights.

            (a) The  Purchaser  agrees to cause the  Company to prepare and file
with the Securities and Exchange Commission (the "SEC") a registration statement
on Form SB-2 (the  "Registration  Statement")  to effect a  registration  of the
Registrable Shares.

            (b)  If,  and to the  extent,  such  Registration  Statement  is not
declared  effective  by the SEC within  one year from the  Effective  Date,  the
Purchaser shall cause the Company to redeem the Registrable  Shares at a rate of
$0.145 per share.

                                  ARTICLE VII
                              CONDITIONS TO CLOSING

      7.1 Conditions Precedent to Obligations of Purchaser.

      The   obligation  of  the  Purchaser  to   consummate   the   transactions
contemplated by this Agreement is subject to the fulfillment, on or prior to the
Closing Date, of each of the  following  conditions  (any or all of which may be
waived  by the  Purchaser  in  whole  or in  part  to the  extent  permitted  by
applicable Law):

                                       14
<PAGE>

            (a) all  representations  and  warranties  of the Sellers  contained
herein shall be true and correct, as of the date hereof;

            (b) all  representations  and  warranties  of the Sellers  contained
herein  qualified  as  to  materiality  shall  be  true  and  correct,  and  the
representations  and warranties of the Sellers contained herein not qualified as
to materiality shall be true and correct in all material respects,  at and as of
the  Closing  Date  with the same  effect as though  those  representations  and
warranties had been made again at and as of that time;

            (c) the Sellers  shall have  performed  and complied in all material
respects with all  obligations  and covenants  required by this  Agreement to be
performed or complied with by them on or prior to the Closing Date;

            (d)  Certificates  representing  100% of the  Shares  set  forth  in
Schedule A shall have been,  or shall at the Closing be,  validly  delivered and
transferred to the Purchaser, free and clear of any and all Liens;

            (e)  there  shall  not have been or  occurred  any  event  causing a
Material Adverse Effect on the Company;

            (f) the  Sellers  shall  have  obtained  all  consents  and  waivers
referred to in Section  4.6 hereof,  in a form  reasonably  satisfactory  to the
Purchaser,   with  respect  to  the  transactions  contemplated  by  the  Seller
Documents;

            (g) no Legal Proceedings shall have been instituted or threatened or
claim or demand made against the Sellers,  the Company, or the Purchaser seeking
to restrain or prohibit or to obtain  substantial  damages  with  respect to the
consummation of the transactions  contemplated hereby, and there shall not be in
effect any order by a Governmental Body of competent  jurisdiction  restraining,
enjoining  or  otherwise   prohibiting  the  consummation  of  the  transactions
contemplated hereby;

            (h) as of the Closing, the Purchaser shall have received the written
resignations of Don J. Colton, Norman Sammis and Glenn W. Stewart,  directors of
the Company; and

            (i) as of the Closing, the Purchaser shall have received the written
agreement of Gregg B. Colton to remain as a director of the Company for at least
six (6) months and as a consultant for at least two (2) years from the Effective
Time.

      7.2 Conditions Precedent to Obligations of the Sellers.

      The obligations of the Sellers to consummate the transactions contemplated
by this  Agreement  are subject to the  fulfillment,  prior to or on the Closing
Date, of each of the following  conditions (any or all of which may be waived by
the Sellers in whole or in part to the extent permitted by applicable Law):

            (a) all  representations  and warranties of the Purchaser  contained
herein shall be true and correct as of the date hereof;

            (b) all  representations  and warranties of the Purchaser  contained
herein  qualified  as  to  materiality  shall  be  true  and  correct,  and  all
representations  and warranties of the Purchaser  contained herein not qualified
as to materiality shall be true and correct in all material respects,  at and as
of the Closing  Date with the same effect as though  those  representations  and
warranties had been made again at and as of that date;

                                       15
<PAGE>

            (c) the Purchaser  shall have performed and complied in all material
respects with all  obligations  and covenants  required by this  Agreement to be
performed or complied with by Purchaser on or prior to the Closing Date;

            (d)  there  shall  not have been or  occurred  any  event  causing a
Material Adverse Effect on the Purchaser; and

            (e) no Legal Proceedings shall have been instituted or threatened or
claim or demand made against the Purchaser seeking to restrain or prohibit or to
obtain substantial  damages with respect to the consummation of the transactions
contemplated  hereby,  and  there  shall  not  be  in  effect  any  order  by  a
Governmental Body of competent jurisdiction restraining,  enjoining or otherwise
prohibiting the consummation of the transactions contemplated hereby.

                                  ARTICLE VIII
                            DOCUMENTS TO BE DELIVERED

      8.1 Documents to be Delivered by the Sellers.

      At the Closing,  the Sellers shall deliver,  or cause to be delivered,  to
the Purchaser the following:

            (a) stock  certificates  representing  the Shares,  duly endorsed in
blank or  accompanied  by stock  transfer  powers and with all  requisite  stock
transfer tax stamps attached;

            (b) copies of all consents and waivers referred to in Section 7.1(g)
hereof;

            (c) the written  resignations  of Don J. Colton,  Norman  Sammis and
Glenn W. Stewart, directors of the Company;

            (d) certificates of good standing with respect to the Company issued
by the Secretary of State of the State of Utah,  and for each state in which the
Company is qualified to do business as a foreign corporation; and

            (e) such other documents as the Purchaser shall reasonably request.

      8.2 Documents to be Delivered by the Purchaser.

      At the Closing, the Purchaser shall deliver to the Sellers the following:

            (a) the Purchase Price; and

            (b) such other documents as the Sellers shall reasonably request.

                                       16
<PAGE>

                                   ARTICLE IX
                                 INDEMNIFICATION

      9.1 Indemnification.

            (a) The Sellers each  individually  agree to indemnify  and hold the
Purchaser,  and  its  respective  directors,  officers,  employees,  Affiliates,
agents,  successors  and  assigns  (collectively,   the  "Purchaser  Indemnified
Parties") harmless from and against for three years from the Closing Date:

                  (i) any and all material  liabilities  of the Company of every
kind,  nature and description,  absolute or contingent,  existing as against the
Company prior to and including the Closing Date or thereafter  coming into being
or arising by reason of any state of facts existing,  or any transaction entered
into, on or prior to the Closing  Date,  except to the extent that the same have
been fully  provided for in the Company's  Financial  Statements or disclosed in
the notes thereto or were incurred in the ordinary course of business;

                  (ii) subject to Section 10.3, any and all losses, liabilities,
obligations,  damages,  costs  and  expenses  based  upon,  attributable  to  or
resulting from the failure of any  representation or warranty of the Sellers set
forth in Section 4 hereof, or any  representation  or warranty  contained in any
certificate delivered by or on behalf of the Sellers pursuant to this Agreement,
to be true and correct in all respects as of the date made;

                  (iii) any and all losses, liabilities,  obligations,  damages,
costs and expenses based upon,  attributable  to or resulting from the breach of
any covenant or other agreement on the part of the Sellers under this Agreement;

                  (iv) any and all notices, actions, suits, proceedings, claims,
demands,  assessments,  judgments,  costs,  penalties  and  expenses,  including
attorneys'  and  other  professionals'  fees  and  disbursements  (collectively,
"Expenses") incident to any and all losses, liabilities,  obligations,  damages,
costs and expenses with respect to which  indemnification  is provided hereunder
(collectively, "Losses").

            (b) The  Purchaser  hereby  agrees to indemnify and hold the Sellers
and their respective Affiliates,  agents,  successors and assigns (collectively,
the "Seller Indemnified Parties") harmless from and against:

                  (i) subject to Section  10.3,  any and all Losses  based upon,
attributable to or resulting from the failure of any  representation or warranty
of the  Purchaser  set  forth in  Section  5 hereof,  or any  representation  or
warranty contained in any certificate delivered by or on behalf of the Purchaser
pursuant to this Agreement, to be true and correct as of the date made;

                  (ii)  any  and  all  Losses  based  upon,  attributable  to or
resulting from the breach of any covenant or other  agreement on the part of the
Purchaser under this Agreement or arising from the ownership or operation of the
Company from and after the Closing Date; and

                  (iii) any and all Expenses incident to the foregoing.

                                       17
<PAGE>

      9.2 Indemnification Procedures.

            (a) In the event that any Legal  Proceedings  shall be instituted or
that any claim or demand ("Claim") shall be asserted by any person in respect of
which  payment may be sought under  Section 9.1 hereof,  the  indemnified  party
shall reasonably and promptly cause written notice of the assertion of any Claim
of which it has knowledge  which is covered by this indemnity to be forwarded to
the indemnifying party. The indemnifying party shall have the right, at its sole
option and expense,  to be represented  by counsel of its choice,  which must be
reasonably  satisfactory  to  the  indemnified  party,  and to  defend  against,
negotiate,  settle or otherwise  deal with any Claim which relates to any Losses
indemnified  against  hereunder.  If the  indemnifying  party  elects  to defend
against, negotiate, settle or otherwise deal with any Claim which relates to any
Losses indemnified against hereunder, it shall within five (5) business days (or
sooner,  if the nature of the Claim so requires) notify the indemnified party of
its intent to do so. If the  indemnifying  party  elects not to defend  against,
negotiate,  settle or otherwise  deal with any Claim which relates to any Losses
indemnified  against  hereunder,  fails to notify the  indemnified  party of its
election  as herein  provided  or  contests  its  obligation  to  indemnify  the
indemnified  party for such Losses under this Agreement,  the indemnified  party
may defend against,  negotiate, settle or otherwise deal with such Claim. If the
indemnified party defends any Claim, then the indemnifying party shall reimburse
the  indemnified  party for the Expenses of defending such Claim upon submission
of periodic  bills.  If the  indemnifying  party shall assume the defense of any
Claim, the indemnified party may participate,  at his or its own expense, in the
defense of such Claim;  provided,  however, that such indemnified party shall be
entitled to participate in any such defense with separate counsel at the expense
of the  indemnifying  party if, (i) so  requested by the  indemnifying  party to
participate  or (ii) in the  reasonable  opinion of  counsel to the  indemnified
party, a conflict or potential conflict exists between the indemnified party and
the indemnifying party that would make such separate  representation  advisable;
and provided,  further, that the indemnifying party shall not be required to pay
for more than one such counsel for all  indemnified  parties in connection  with
any  Claim.  The  parties  hereto  agree to  cooperate  fully with each other in
connection with the defense, negotiation or settlement of any such Claim.

            (b) After any final  judgment or award shall have been rendered by a
court,  arbitration board or administrative agency of competent jurisdiction and
the expiration of the time in which to appeal  therefrom,  or a settlement shall
have been consummated, or the indemnified party and the indemnifying party shall
have arrived at a mutually binding  agreement with respect to a Claim hereunder,
the indemnified party shall forward to the indemnifying party notice of any sums
due and owing by the indemnifying  party pursuant to this Agreement with respect
to such  matter and the  indemnifying  party shall be required to pay all of the
sums so due and owing to the  indemnified  party by wire transfer of immediately
available funds within 10 business days after the date of such notice.

            (c) The failure of the indemnified  party to give reasonably  prompt
notice  of  any  Claim  shall  not  release,   waive  or  otherwise  affect  the
indemnifying  party's obligations with respect thereto except to the extent that
the indemnifying  party can demonstrate actual loss and prejudice as a result of
such failure.

                                   ARTICLE X
                                  MISCELLANEOUS

      10.1 Payment of Sales, Use or Similar Taxes.

      All sales, use, transfer,  intangible,  recordation,  documentary stamp or
similar Taxes or charges, of any nature whatsoever,  applicable to, or resulting
from, the  transactions  contemplated  by this  Agreement  shall be borne by the
Sellers.

                                       18
<PAGE>

      10.2 Survival of Representations and Warranties.

      The parties  hereto hereby agree that the  representations  and warranties
contained  in this  Agreement  or in any  certificate,  document  or  instrument
delivered in  connection  herewith,  shall survive the execution and delivery of
this Agreement, and the Closing hereunder,  regardless of any investigation made
by the  parties  hereto;  provided,  however,  that any claims or  actions  with
respect  thereto  (other than claims for  indemnifications  with  respect to the
representation  and warranties  contained in Sections 4.7, 4.11,  4.16, 4.20 and
4.25 which shall survive for periods coterminous with any applicable statutes of
limitation)  shall  terminate  unless  within 24 months  after the Closing  Date
written  notice  of such  claims is given to the  Sellers  or such  actions  are
commenced.

      10.3 Expenses.

      Except as  otherwise  provided  in this  Agreement,  the  Sellers  and the
Purchaser  shall each bear its own  expenses  incurred  in  connection  with the
negotiation and execution of this Agreement and each other  agreement,  document
and  instrument  contemplated  by this  Agreement  and the  consummation  of the
transactions  contemplated  hereby and thereby,  it being understood that in the
event that the  transaction  is  consummated,  the Company shall not bear any of
such costs and expenses;  provided,  however, that the costs associated with the
audit of the Company in  connection  with the  transaction  contemplated  hereby
shall be paid by the Purchaser as a post-transaction expense.

      10.4 Specific Performance.

      The Sellers  acknowledge and agree that the breach of this Agreement would
cause  irreparable  damage to the Purchaser and that the Purchaser will not have
an adequate remedy at law. Therefore,  the obligations of the Sellers under this
Agreement,  including,  without limitation,  the Sellers' obligation to sell the
Shares  to  the  Purchaser,  shall  be  enforceable  by  a  decree  of  specific
performance  issued  by any court of  competent  jurisdiction,  and  appropriate
injunctive relief may be applied for and granted in connection  therewith.  Such
remedies  shall,  however,  be  cumulative  and not  exclusive  and  shall be in
addition to any other  remedies which any party may have under this Agreement or
otherwise.

      10.5 Further Assurances.

      The Sellers and the Purchaser each agree to execute and deliver such other
documents  or  agreements  and to take such  other  action as may be  reasonably
necessary  or  desirable  for  the  implementation  of  this  Agreement  and the
consummation of the transactions contemplated hereby.

      10.6 Submission to Jurisdiction; Consent to Service of Process.

            (a) The parties  hereto hereby  irrevocably  submit to the exclusive
jurisdiction of any federal or state court located within the State of Utah over
any  dispute  arising  out  of or  relating  to  this  Agreement  or  any of the
transactions  contemplated  hereby and each party hereby irrevocably agrees that
all claims in respect of such  dispute or any suit,  action  proceeding  related
thereto  may be  heard  and  determined  in  such  courts.  The  parties  hereby
irrevocably  waive,  to the fullest  extent  permitted  by  applicable  Law, any
objection  which  they may now or  hereafter  have to the laying of venue of any
such dispute brought in such court or any defense of inconvenient  forum for the
maintenance  of such dispute.  Each of the parties hereto agrees that a judgment
in any  such  dispute  may be  enforced  in other  jurisdictions  by suit on the
judgment or in any other manner provided by law.

                                       19
<PAGE>

            (b) Each of the parties  hereto  hereby  consents  to process  being
served by any party to this  Agreement in any suit,  action or proceeding by the
mailing of a copy thereof in accordance with the provisions of Section 10.10.

      10.7 Entire Agreement; Amendments and Waivers.

      This Agreement  (including the schedules and exhibits  hereto)  represents
the entire  understanding and agreement among the parties hereto with respect to
the subject matter hereof and can be amended,  supplemented or changed,  and any
provision  hereof can be  waived,  only by written  instrument  making  specific
reference to this Agreement  signed by the party against whom enforcement of any
such amendment,  supplement,  modification or waiver is sought.  No action taken
pursuant to this Agreement,  including without limitation,  any investigation by
or on behalf of any party,  shall be deemed to  constitute a waiver by the party
taking such action of compliance with any representation,  warranty, covenant or
agreement  contained  herein.  The waiver by any party hereto of a breach of any
provision  of this  Agreement  shall not operate or be construed as a further or
continuing  waiver of such  breach  or as a waiver  of any  other or  subsequent
breach.  No  failure  on the  part of any  party  to  exercise,  and no delay in
exercising,  any  right,  power or remedy  hereunder  shall  operate as a waiver
thereof, nor shall any single or partial exercise of such right, power or remedy
by such party preclude any other or further  exercise thereof or the exercise of
any other right,  power or remedy. All remedies hereunder are cumulative and are
not exclusive of any other remedies provided by law.

      10.8 Governing  Law. This Agreement  shall be governed by and construed in
accordance with the laws of the State of California

      10.9 Table of Contents and Headings.

      The table of contents  and  section  headings  of this  Agreement  are for
reference  purposes  only and are to be given no effect in the  construction  or
interpretation of this Agreement.

      10.10 Notices.

      All  notices and other  communications  under this  Agreement  shall be in
writing and shall be deemed given when delivered by hand,  overnight delivery or
mailed by certified mail,  return receipt  requested,  to the parties (and shall
also be transmitted by facsimile to the persons receiving copies thereof) at the
following  addresses (or to such other address as a party may have  specified by
notice given to the other party pursuant to this provision):

            (a)   Purchaser:

                    Franklin Capital Corporation
                    100 Wilshire Boulevard, 15th Floor
                    Santa Monica, CA 90401
                    Attn:  Milton "Todd" Ault III, Chairman
                       And Chief Executive Officer
                    Phone:  (310) 752-1461
                    Facsimile:  (310) 752-1486

                                       20
<PAGE>

                    Copy to:

                    Marc J. Ross, Esq.
                    Sichenzia Ross Friedman Ference LLP
                    1065 Avenue of the Americas
                    New York, New York 10018
                    Phone:  (212) 930-9700
                    Facsimile: (212) 930-9725

            (b)   Sellers:

                  c/o Gregg B. Colton
                  1206 W South Jordan Pkwy
                  Unit B
                  South Jordan, UT  84095
                    Phone:  (801) 566-3000
                    Facsimile: (801) 446-5500

      10.11 Severability.

      If any  provision  of this  Agreement  is  invalid or  unenforceable,  the
balance of this Agreement shall remain in effect.

      10.12 Binding Effect; Assignment.

      This  Agreement  shall be  binding  upon and inure to the  benefit  of the
parties and their respective  successors and permitted assigns.  Nothing in this
Agreement shall create or be deemed to create any third party beneficiary rights
in any person or entity not a party to this Agreement  except as provided below.
No assignment of this Agreement or of any rights or obligations hereunder may be
made by either the Sellers or the  Purchaser  (by operation of law or otherwise)
without the prior written  consent of the other parties hereto and any attempted
assignment without the required consents shall be void; provided,  however, that
the  Purchaser may assign this  Agreement  and any or all rights or  obligations
hereunder (including, without limitation, the Purchaser's rights to purchase the
Shares and the  Purchaser's  rights to seek  indemnification  hereunder)  to any
Affiliate of the Purchaser.  Upon any such permitted assignment,  the references
in this Agreement to the Purchaser  shall also apply to any such assignee unless
the context otherwise requires.

         [THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK]

                                       21
<PAGE>

                                           PURCHASER:

                                           FRANKLIN CAPITAL CORPORATION

                                           By: /s/ MILTON "TODD" AULT III
                                           Milton "Todd" Ault III
                                           Chairman and Chief Executive Officer

                                           SELLERS:

                                           A. PRINCIPAL SHAREHOLDERS

                                           /s/ DON J. COLTON
                                           ------------------
                                           Don J. Colton

                                           /s/ GREGG B. COLTON
                                           --------------------------
                                           Gregg B. Colton

                                           AMERICAN DRILLING SERVICES

                                           By:/s/ DON J. COLTON
                                           -----------------------
                                           Name: Don J. Colton
                                           Title: President

                                           VERNAL WESTERN DRILLING

                                           By: /s/ GREGG B. COLTON
                                           ----------------------
                                           Name: Gregg B. Colton
                                           Title: President

                                           /s/ NORMAN SAMMIS
                                           ----------------------
                                           Norman Sammis

                                           /s/ GLENN W. STEWART
                                           ----------------------
                                           Glenn W. Stewart

                                       22
<PAGE>

                                           PIONEER OIL AND GAS

                                           By:/s/ DON J. COLTON
                                           -----------------------
                                           Name: Don J. Colton
                                           Title:  President

                                           B. OTHER SHAREHOLDERS

                                           /s/ ANDREW BUFFMIRE
                                           -----------------------
                                           Andrew Buffmire

                                           WHISPER INVESTMENT CO.

                                           By: /s/ TODD GROSKREUTZ
                                           -----------------------
                                           Name: Todd Groskreutz
                                           Title: Manager

                                           /s/ JOHN B. HALL
                                           ------------------
                                           John B. Hall

                                           /s/GREGG B. COLTON
                                           ------------------
                                           Gregg B. Colton,
                                           Solely with respect to Section 7.1(i)

                                       23
<PAGE>

                                                        SCHEDULE A

(1)   SELLERS SELLING 80% OF THEIR TOTAL SHARES

                           Shares Sold on         Shares to be      Amount Owed
Seller                  Signing of Agreement       Registered       at Closing
------                  --------------------       ----------       ----------

Don J. Colton                  81,100               304,500           $10,949
American Drilling Services    403,475                     0             54,470
Vernal Western Drilling       220,000               500,000             29,700
Gregg B. Colton               251,437               328,550             33,944
Norman Sammis                  36,360                18,200              4,909
Glenn W. Stewart              244,360                18,200             32,989
Pioneer Oil and Gas           576,623                     0             77,845
Andrew Buffmire               195,385                54,550             26,377
Whisper Investment Co.        120,000                     0             16,200
                            ---------              --------           --------
Total                       2,128,740              1,224,000          $287,383

(2)   SELLERS SELLING 100% OF THEIR TOTAL SHARES

                           Shares Sold on         Shares to be      Amount Owed
Seller                  Signing of Agreement       Registered       at Closing
------                  --------------------       ----------       ----------

John B. Hall                  100,787                     0            $14,615

                                       24

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