Document:

EXHIBIT 10.18
William S. Robinson
Chairman and Chief Executive Officer
Integral Technologies, Inc.
805 W. Orchard Drive
Suite 7
Bellingham WA  98225

June 20, 2005

Bill:

This  letter  sets  forth the terms of the agreement for The QuanStar Group, LLC
("QuanStar"  or  the  "Advisor"),  as  the  Advisor,  to  render  strategic  and
consulting services to Integral Technologies, Inc. ("Integral" or the "Company")
(the  "Agreement").

1)   BUSINESS  ACTIVITIES
     --------------------

QuanStar agrees to provide the following services to the Company pursuant to the
terms  of  this  agreement:

     a)   Research  of  Business  Channels  -  QuanStar  will assist the Company
          in  its  research  of  potential  business  channels for the Company's
          products,  evaluate  such  channels and provide recommendations to the
          Company.

     b)   Strategic  and  Negotiation  Consultation  -  Upon  request  by  the
          Company,  QuanStar  will  be  available  to  provide  strategic  and
          negotiation  consulting  advice  to the Company. This may include, but
          not be limited to, such things as:

          i)   Planning  for  and  participating  in  major  negotiation  with
               vendors, suppliers and clients

          ii)  Reviewing  the  business  and  operations  plan, strategic growth
               plan, and/or financial plan of the Company

          iii) Supporting  Board  and  Investor  meetings,  either  by
               teleconference or in person

          iv)  As  needed,  provide  telephonic  consultation  relating  to time
               sensitive business decisions

     c)   Distributor/Client  Support  -  QuanStar  will  review  with  the
          Company  potential new distributors and clients, provide an evaluation
          of  such  organizations,  help develop agreements for sales and assist
          where needed in negotiations for such agreements.

     d)   Governmental  Channels  and  Research  -  QuanStar  will  assist  the
          Company in developing a program to introduce the Company's products to
          various  targeted  governmental  agencies  for  the purpose of product
          sales  as  well  as for potential research grants to enhance or extend
          the Company's product line.

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                INTEGRAL TECHNOLOGIES INC. - BUSINESS AGREEMENT
                -----------------------------------------------

     e)   Manufacturing  Expansion  -  QuanStar  will  advise  the  Company  in
          discussions  regarding  expanding  the  production capabilities of the
          Company  and  will  assist  in  developing  a  manufacturing plan once
          alternatives are chosen.

     f)   International  Licensees  and  Distributors  -  QuanStar  will provide
          initial  research  into  potential  international  licensees  and
          distributors,  evaluate such organizations and provide input as to the
          development of any agreements.

     g)   Client  Introductions  -  QuanStar  will  assist  the  Company  by
          providing  potential  sales  leads  from  its  internal  and affiliate
          relationships.

     h)   Exit  Planning  -  QuanStar  will  work  with  the  Company  to define
          various potential exit event scenarios, hold discussions regarding the
          viability  of  such  events  and  help  the  Company  prepare  any
          developmental  activities  necessary  to  enhance the possibilities of
          those events happening.

     i)   Other  Services  -  Quanstar  will  assist  the  Company  with  other
          services  as mutually agreed to by the parties during the term of this
          Agreement.

2)   EXECUTIVE  MANAGEMENT
     ---------------------

     QuanStar  will  be  responsible  for  reporting  directly to the CEO of the
     Company  and  all  activities  shown  above  will  be  provided in a direct
     working  relationship  with the CEO and others as designated by the Company
     in  its  discretion.  QuanStar  will  establish  and  provide  an executive
     management  team  to  the  Company  to support the services outlined above,
     subject  to  the  approval  of the Company. QuanStar's executive management
     team  shall,  at  all times during the term of this Agreement, be headed by
     Mark N. Sirangelo.

3)   BUSINESS  ACTIVITIES  AND  EXECUTIVE  MANAGEMENT  FEES
     ------------------------------------------------------

     Prior  to  the  termination  of  this  Agreement pursuant to Section 4, the
     Company  will  agree  to  pay  to  QuanStar  for  its  ongoing  executive
     management services:

     a)   A  monthly  retainer  of  $15,000  beginning  on the execution date of
          this  Agreement,  prorated for any partial month and on the 1st day of
          each  month  thereafter; in the event of termination of this Agreement
          effective  in  the  middle  of any month, QuanStar shall return to the
          Company  a prorated portion of the retainer for such month, based upon
          the  number  of  days  in  such  month  following the termination, and
          payable within five (5) days following the effective termination date.

     b)   500,000 shares of restricted common stock.

     c)   Business  Development  Fee  -  The  Company will pay to QuanStar a fee
          equal  to  5%  of  Net Revenue (as defined below) actually paid to the
          Company  by  new  clients  or  other  persons  directly  introduced by
          QuanStar  under  this  Agreement  (each,  a  "Third Party"); provided,
          however,  that  QuanStar  shall  only  be  entitled to receive the fee
          described in

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                INTEGRAL TECHNOLOGIES INC. - BUSINESS AGREEMENT
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          this  Section  3(c)  if  it  first  identifies  the  name of the Third
          Party  in  writing  prior  to engaging in negotiations with such Third
          Party with respect to consummation of a commercial transaction between
          the  Third  Party  and the Company, and the Company approves the Third
          Party  in  writing; provided further, however, that QuanStar shall not
          be  entitled  to  receive the fee provided for under this Section 3(c)
          with  respect  to  any person with whom the Company had a pre-existing
          relationship  prior  to the date of this Agreement, unless the Company
          requests  in  writing QuanStar's participation with such relationship.
          For  purposes  of  this  Agreement,  the term "Net Revenue" shall mean
          revenue actually received by the Company from Third Parties in respect
          of  sales  of the Company's products and/or services, license fees, or
          research  grants,  net of taxes payable by the Company with respect to
          such  amounts  and  all  direct  costs  incurred  by  the  Company  in
          generating  such revenue (including, without limitation, expenses paid
          to QuanStar pursuant to Sections 6 of this Agreement).,.

4)   TERM
     ----

     a)   Unless  earlier  terminated  pursuant  to  Section 4(b) or 4(c) below,
          the  initial term of the Agreement shall begin on the execution hereof
          and  continue  for  an  initial  period  of one (1) year (the "Initial
          Term").  Unless  terminated  by either party at least thirty (30) days
          prior to the end of the initial one (1) year term, this Agreement will
          automatically  be  renewed  for  successive  one-year periods (each a,
          "Successive Term" and, together with the "Initial Term," the "Term").

     b)   This  Agreement  may  be  terminated  without  Cause  (as  defined  in
          Section  4(c)  below)  by either party prior to the end of the Term at
          any time upon thirty (30) days prior written notice, given at any time
          but  not  prior  to  ninety (90) days from the starting date. Quanstar
          agrees  to continue to provide regular services and support activities
          during the thirty (30) day notification period.

     c)   This  Agreement  may  be  terminated  by  the Company prior to the end
          of  the  Term  for  Cause  immediately  upon  notice  to QuanStar. For
          purposes  of  this Agreement, the term "Cause" shall mean shall a good
          faith  determination by the Company that there has been: (i) a failure
          by  QuanStar  to  perform  its  duties  hereunder after notice of such
          failure  from  the  Company, if such failure has not been cured within
          ten  (10)  days  after  receipt of such notice, (ii) any act by, or an
          event  with  respect  to,  QuanStar  involving  embezzlement,  theft,
          material  dishonesty, or material harm to the Company's reputation, or
          a  conviction of or plea of nolo contendere to a crime involving moral
          turpitude  or  a felony of any of the principals of QuanStar, or (iii)
          any  breach of this Agreement by QuanStar, if such breach has not been
          cured within ten (10) days after receipt of such notice.

     d)   Upon  any  termination  of  this  Agreement,  all  obligations  of the
          parties  shall  end; provided, however, that no such termination shall
          affect  the  obligations  of QuanStar pursuant to Section 7 below, the
          indemnification  obligations  of  the Company or QuanStar set forth in
          Section  8 below, or the right of QuanStar to receive any retainer and
          performance  fees earned and payable during the term of this Agreement
          or  the  right  of  QuanStar  to  receive  reimbursement  for  its
          out-of-pocket  expenses  previously  incurred  as  described  below in
          Section 6. The Company will continue to pay QuanStar

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                INTEGRAL TECHNOLOGIES INC. - BUSINESS AGREEMENT
                -----------------------------------------------

          the  fees  earned  in  Section  3(c)  for all agreements signed before
          the termination of this Agreement for the duration of such contract.

5)   REPORTS  AND  MEETINGS
     ----------------------

     a)   QuanStar shall, at its expense, provide the Company with the following
          full  and  complete  reports  during  the  term of this Agreement: (i)
          written  periodic  reports summarizing QuanStar's efforts with respect
          to  the services described in Section 1 above; (ii) market information
          from reports which QuanStar receives from time to time; and (iii) such
          other reports as mutually agreed upon by the parties.

     b)   QuanStar's  executive management team and the Company shall maintain a
          close  working  relationship  which  shall  include  periodic meetings
          during  which  the business activities undertaken by QuanStar pursuant
          to this Agreement shall be reviewed and discussed.

6)   EXPENSES
     --------

     The  Company  will reimburse QuanStar, upon its request, for all reasonable
     out  of  pocket  expenses,  including  economy  travel,  incurred  by it in
     connection with performing services as outlined in this Agreement, provided
     that  any  single expense in excess of $500, or any single event expense in
     excess of $1,000 will require the prior written consent of the Company, and
     aggregate  expenses  in  excess  of  $15,000 during the Initial Term or any
     Successive Term will also require the prior written consent of the Company.

     Subject  to  the  provisions  of  the preceding paragraph, the Company will
     establish  a  prepaid expense account with QuanStar in the amount of $2,500
     which  it  will  maintain at that level and from which QuanStar will deduct
     all  valid  expenses;  QuanStar shall send to the Company a monthly expense
     report  detailing  all  expenses  deducted from such account. Any excess in
     such  account  will, upon termination of this Agreement, be returned to the
     Company in full.

7)   INFORMATION  AND  CONFIDENTIALITY
     ---------------------------------

     a)   QuanStar  agrees  that  all  non-public  information pertaining to the
          prior,  current  or  contemplated  business  of  the  Company  are
          valuable  and  confidential  assets  of  the Company. Such information
          shall  include,  without  limitation, information relating to customer
          lists,  bidding  procedures,  intellectual  property,  trade  secrets,
          financing  techniques and sources and such financial statements of the
          Company  as  are  not available to the public. QuanStar shall hold all
          such  information  provided  to  it  in  trust  and confidence for the
          Company  and  shall  not  use  or disclose any such information to any
          other  person  except with the prior consent of the Company. The terms
          of  this  Agreement  and the relationship of the parties shall also be
          governed  by  the  Confidentiality  Agreement  between the Company and
          Quanstar  dated  August 18, 2004 (the "Confidentiality Agreement"). In
          the  event of any conflict between the terms of this Agreement and the
          terms  of  the  Confidentiality  Agreement,  the  terms  of  the
          Confidentiality Agreement shall govern.

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                INTEGRAL TECHNOLOGIES INC. - BUSINESS AGREEMENT
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     b)   Upon  request  from the Company during or upon the termination of this
          Agreement,  QuanStar  will  provide  the  Company  any  and all of its
          work  product  information related to the services provided under this
          Agreement.

     c)   QuanStar  acknowledges  that  any  breach  of this Section 7 may cause
          immediate  and  irreparable  injury  to  the Company and that monetary
          damages  may  be inadequate to compensate the Company for such breach.
          Having  acknowledged the foregoing, QuanStar agrees that, in the event
          of such breach, the Company shall be entitled to injunctive relief, in
          addition  to  all  other remedies available to it at law or in equity.
          This  Section  in  no  way limits the liability or damages that may be
          assessed  against  QuanStar  in  the  event  of a breach of any of the
          provisions of this Section 7.

8)   INDEMNIFICATION
     ---------------

     The  Company and Quanstar mutually agree to defend, indemnify and hold each
     other  and  their  directors,  officers,  employees  and  agents,  harmless
     from  and  against  any  and  all  claims or liability arising out of their
     performance  under  this  Agreement  except  to  the  extent such claims or
     liability  result  from  the  gross negligence or willful misconduct of the
     party claiming indemnification rights.

9)   INDEPENDENT  CONTRACTOR
     -----------------------

     It  is  expressly  understood and agreed that QuanStar shall, at all times,
     act  as  an  independent  contractor  with  respect  to the Company and not
     as  an  employee  or  agent  of  the  Company, and nothing contained in any
     agreement  shall  be  construed  to  create  a  joint venture, partnership,
     association  or  other  affiliation,  or  like  relationship,  between  the
     parties.

10)  AMENDMENT
     ---------

     No  modification,  waiver, amendment, discharge or change of this Agreement
     shall  be  valid  unless  the  same  is  evidenced in writing and signed by
     the parties.

11)  NOTICES
     -------

     All  notices  given  shall  be  in writing and shall be deemed to have been
     provided  when  delivered  by  certified  or  overnight mail to the primary
     business addresses of the other party.

12)  ENTIRE  AGREEMENT
     -----------------

     This  Agreement  contains  all  of the understandings and agreements of the
     parties  with  respect  to  the  subject matter discussed herein. All prior
     agreements,  whether  written or oral, are merged herein and shall be of no
     force or effect.

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                INTEGRAL TECHNOLOGIES INC. - BUSINESS AGREEMENT
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13)  SEVERABILITY
     ------------

     The  invalidity,  illegality  or  unenforceability  of  any  provision  or
     provisions  of  this  Agreement  will  not  affect  any  other provision of
     this  Agreement,  which  will remain in full force and effect, nor will the
     invalidity, illegality or unenforceability of a portion of any provision of
     this Agreement affect the balance of such provision.

14)  CONSTRUCTION  AND  ENFORCEMENT;  VENUE
     --------------------------------------

     This  Agreement shall be construed in accordance with the laws of the State
     of  Washington,  without  application  of  the  principles  of conflicts of
     laws.  The parties agree to exclusive jurisdiction of the state and federal
     courts  in  Whatcom  County,  Washington,  each  party  submits  to  the
     jurisdiction  of those courts, and each party agrees not to object to venue
     before such courts.

15)  BINDING  NATURE
     ---------------

     The  terms and provisions of this Agreement shall be binding upon and inure
     to  the  benefit  of  the  parties,  and  their  respective  successors and
     assigns.  QuanStar  cannot  assign  the work requirements of this Agreement
     without prior consent of the Company.

16)  COUNTERPARTS
     ------------

     This  Agreement  may  be  executed in any number of counterparts, including
     facsimile  signatures,  which  shall  be  deemed  as  original  signatures.
     All  executed  counterparts shall constitute one Agreement, notwithstanding
     that  all  signatories  are  not  signatories  to  the original or the same
     counterpart.

17)  ASSIGNMENT
     ----------

     QuanStar  shall  not  assign  or delegate any of its obligations under this
     Agreement  without  the  prior  written  consent of the Company which shall
     not  be unreasonably withheld, including through a transfer of greater than
     fifty  percent  (50%)  of  the  ownership  interest  of QuanStar, through a
     merger,  consolidation  or otherwise, or otherwise by operation of law. Any
     assignment  or  delegation in contravention of this provision shall be null
     and  void. Except as provided in the preceding sentences, all the terms and
     provisions  of this Agreement will be binding upon and inure to the benefit
     of  and  be  enforceable by the parties and their respective successors and
     permitted assigns.

18)  AUTHORIZATION
     -------------

     The  Company  represents  and  warrants that it has the requisite power and
     authority  to  enter  into  and  carry out the terms and conditions of this
     Agreement.

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                INTEGRAL TECHNOLOGIES INC. - BUSINESS AGREEMENT
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19)  NON-WAIVER
     ----------

     The  failure  by  either party hereto at any time to require performance by
     the  other  party  or  to  claim  a  breach  of  any  provision  of  this
     Agreement  shall not be construed as affecting any subsequent breach or the
     right  to require the performance with respect thereto or to claim a breach
     with respect thereto.

20)  COMPLIANCE  WITH  LAWS
     ----------------------

     QuanStar hereby represents and warrants that the conduct of its business is
     in  compliance  with  all  applicable  laws, and QuanStar has obtained, and
     will maintain during the term of this Agreement, all licenses necessary for
     the conduct of its business.

Please  confirm  that the foregoing correctly set forth our agreement by signing
and  returning  to  us  a  copy  of  this  Agreement.

Sincerely,

/s/  Mark  N.  Sirangelo

Mark  N.  Sirangelo
Chief  Executive  Officer
The  QuanStar  Group,  LLC

Accepted  By:

/s/  William  A.  Ince

______________________________
William  A.  Ince
President
Integral  Technologies  Inc.

Date:  June  20,  2005

                                                                     Page 7 of 7<PAGE>

EXHIBIT 10.1

                            STOCK PURCHASE AGREEMENT

         This Stock Purchase Agreement ("Agreement") is entered into this 17th
day of June, 2005 (the "Effective Date"), by and among USN CORPORATION (FORMERLY
KNOWN AS PREMIER CONCEPTS, INC.), a Colorado corporation (hereinafter referred
to as "Buyer") and GLOBAL SUN ENTERPRISES LTD a British Virgin Islands company
(hereinafter referred to as "Seller"), being the shareholder of ALTRON LIMITED,
a Hong Kong corporation, (hereinafter referred to as the "Company").

         WHEREAS, Seller is the owner of ten thousand (10,000) shares (the
"Company Shares") of the issued and outstanding shares of common stock, HK$1 per
share paid in capital (the "Company Stock"), representing one hundred percent
(100%) of all the issued and outstanding shares of the capital stock of the
Company (the "Company Shares"); and

         WHEREAS, Seller desires to sell all of the Company Shares to Buyer, and
Buyer desires to purchase the Company Shares, upon the terms and conditions set
forth herein;

         NOW THEREFORE, in consideration of the mutual promises and covenants
contained herein, the parties hereto agree as follows:

                                       I.

                     SALE AND PURCHASE OF THE COMPANY SHARES
                     ---------------------------------------

         1.1 SALE AND PURCHASE. Subject to the terms and conditions hereof, at
the Closing (as defined in paragraph 1.2 below), Seller agrees to sell, assign,
transfer and convey to Buyer, and Buyer agrees to purchase from Seller, the
Company Shares.

         1.2 CLOSING. Upon the terms and subject to the satisfaction of the
conditions contained in this Agreement the purchase shall be consummated at a
closing (the "Closing") to take place at 11:00 o'clock a.m., at the offices of
Buyer on June 17, 2005 or at such other date and time as the parties shall agree
(the "Closing Date").

         1.3 PURCHASE PRICE.

         A. The purchase price (the "Purchase Price") for the Company Shares
shall be Eleven Million Four Hundred Sixty Five Thousand Nine Hundred Eighty
(11,465,980) shares (the "Buyer Shares") of Buyer's authorized but previously
unissued common stock, par value $0.0001 per share (the "Buyer Common Stock"),
which upon issuance at Closing shall represent [49.8%] of all issued and
outstanding shares of Buyer Common Stock. In addition Buyer shall issue options
or warrants to Seller for a number of shares of Buyer Common Stock equal to the
number of shares of Buyer Common Stock subject to currently outstanding, but
unexercised options or warrants. The Purchase Price shall be paid by Buyer at
Closing, by issuance and delivery of the Buyer Shares to Seller, free and clear
of all liens, claims, and encumbrances of every kind and nature (other than as
imposed by securities laws) against delivery by Seller of stock powers
representing the transfer of Company Shares to Buyer, duly endorsed. Buyer
believes the number of shares of all issued and outstanding shares of Buyer

                                       1
<PAGE>

Common Stock as of the above stated date is Eleven Million Five Hundred Fifty
Eight Thousand Seventy Seven (11,558,077) shares. Should the actual number of
shares differ from the number stated herein, the number of shares issued to
Seller shall be adjusted either way accordingly to reflect the correct number of
shares so that the Seller receives [49.8%] of all issued and outstanding shares.

         B. The Seller acknowledges that Buyer is issuing the Buyer Shares in a
transaction not registered under the Securities Act of 1933, as amended (the
"Securities Act"). Seller further understands that, in addition to any other
legends required by applicable state securities laws, a legend will be placed on
any certificate or certificates representing the Buyer Shares substantially to
the following effect:

         THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR UNDER THE SECURITIES LAWS OF
ANY STATE AND MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS
REGISTERED UNDER THAT ACT AND UNDER APPLICABLE STATE SECURITIES LAWS OR USN
CORPORATION (THE "COMPANY") SHALL HAVE RECEIVED AN OPINION OF ITS COUNSEL THAT
REGISTRATION OF SUCH SECURITIES UNDER THAT ACT AND UNDER THE PROVISIONS OF
APPLICABLE STATE SECURITIES LAWS IS NOT REQUIRED.

         1.4 OTHER AGREEMENTS. At the Closing, the indicated parties shall
execute and deliver the following additional agreements in substantially the
form attached hereto:

                  (a) Stock powers representing all of the Company Shares, duly
         endorsed to Buyer transferring the Company Shares from Seller to Buyer,
         copies of which are attached hereto as Exhibit "C"; and

                  (b) Registration Rights Agreement between the Buyer and Seller
         attached hereto as Exhibit "D".

         1.5 BASIC AGREEMENTS AND TRANSACTIONS DEFINED. This Agreement and other
agreements listed in paragraph 1.4, are sometimes referred to as the "Basic
Agreements". The transactions contemplated by the Basic Agreements are sometimes
referred to as the "Transactions".

                                       2
<PAGE>

                                       II.

                         REPRESENTATIONS AND WARRANTIES
                         ------------------------------

         2.1 REPRESENTATIONS AND WARRANTIES OF THE SELLER AND THE COMPANY. The
Seller and the Company represent and warrant to Buyer as of the Effective Date
and as of the Closing as follows:

                  (a) ORGANIZATION. The Company is a corporation duly
         incorporated, validly existing and in good standing under the laws of
         the Hong Kong Special Administrative District, People's Republic of
         China. The Company has all requisite corporate power and authority to
         own, lease and operate its properties and to carry on its business. The
         Company is duly qualified and in good standing as a foreign corporation
         in each jurisdiction where its ownership of property or operation of
         its business requires qualification, except where the failure to be
         qualified would not have a material adverse effect on the Company.

                  (b) CAPITAL STRUCTURE. The authorized capital stock of the
         Company consists of Ten Thousand (10,000) shares of Company Stock. At
         Closing, 10,000 shares of Company Stock and no shares of Preferred
         Stock will be issued and outstanding. All outstanding shares of capital
         stock of the Company were, when issued, duly authorized, validly
         issued, fully paid and nonassessable and not subject to preemptive
         rights. There are no bonds, debentures, notes or other indebtedness of
         the Company having the right to vote on any matters on which
         stockholders of the Company may vote. Except as set forth in Exhibit
         "F", there are no outstanding options, warrants, calls, rights,
         commitments, agreements, arrangements or undertakings of any kind to
         which the Company is a party or which binds or obligates the Company to
         issue, deliver or sell, or cause to be issued, delivered or sold,
         additional shares of capital stock or other voting securities of the
         Company.

                  (c) AUTHORITY. The Company has full power and lawful authority
         to execute and deliver the Basic Agreements and to consummate and
         perform the Transactions contemplated thereby. The Basic Agreements
         have been validly executed and delivered by the Company. The Basic
         Agreements constitute (or shall, upon execution, constitute) valid and
         legally binding obligations upon the Company, enforceable in accordance
         with their terms. Neither the execution and delivery of the Basic
         Agreements by the Company, nor the consummation and performance of the
         Transactions contemplated thereby, conflicts with, requires the
         consent, waiver or approval of, results in a breach of or default
         under, or gives to others any interest or right of termination,
         cancellation or acceleration in or with respect to, any material
         agreement by which the Company is a party or by which the Company or
         any of its material properties or assets are bound or affected.

                                       3
<PAGE>

                  (d) COMPANY FINANCIAL STATEMENTS. The Company's Financial
         Statements as of April 30, 2005 as previously delivered to Buyer (the
         "Financial Statement") are complete, were prepared in accordance with
         generally accepted accounting principles applied on a basis consistent
         with prior periods and fairly present, in all material respects, the
         financial position of the Company as of and for the period ending April
         30, 2005. Buyer has examined these Financial Statements and have found
         them acceptable and satisfactory.

                  (e) NO UNDISCLOSED LIABILITIES. Except as set forth in the
         Company's Financial Statements previously delivered to Buyer and as set
         forth on Exhibit "G" attached hereto, the Company and the Seller are
         not aware of any material liabilities for which the Company is liable
         or will become liable in the future.

                  (f) TAXES. The Company has filed all federal, state, local tax
         and other returns and reports which were required to be filed with
         respect to all taxes, levies, imposts, duties, licenses and
         registration fees, charges or withholdings of every nature whatsoever
         ("Taxes"), and there exists a substantial basis in law and fact for all
         positions taken in such reports. No waivers of periods of limitation
         are in effect with respect to any taxes arising from and attributable
         to the ownership of properties or operations of the business of the
         Company.

                  (g) PROPERTIES. The Company has good and marketable title to
         all its material personal property, equipment, processes, patents,
         copyrights, trademarks, franchises, licenses and other material
         properties and assets (except for items leased or licensed to the
         Company), including all property reflected in the Company's Financial
         Statements (except for assets reflected therein which have been sold in
         the normal course of its business where the proceeds from such sale or
         other disposition have been properly accounted for in the Financial
         Statements of the Company), in each case free and clear of all material
         liens, claims and encumbrances of every kind and character. The assets
         and properties owned, operated or leased by the Company and used in its
         business are in good operating condition, reasonable wear and tear
         excepted, and suitable for the uses for which intended.

                  (h) BOOKS AND RECORDS. The books and records of the Company
         are complete and correct in all material respects, have been maintained
         in accordance with good business practices and accurately reflect in
         all material respects the business, financial condition and results of
         operations of the Company as set forth in the Company's Financial
         Statements.

                  (i) TRANSACTIONS WITH CERTAIN PERSONS. Except as disclosed in
         Exhibit "H", the Company has no outstanding material agreement,
         understanding, contract, lease, commitment, loan or other material
         arrangement with any officer, director or shareholder of the Company or
         any relative of any such person, or any corporation or other entity in
         which such person owns a beneficial interest.

                                       4
<PAGE>

                  (j) MATERIAL CONTRACTS. The Company has no purchase, sale,
         commitment, or other contract, the breach or termination of which would
         have a materially adverse effect on the business, financial condition,
         results of operations, assets, liabilities, or prospects of the
         Company.

                  (k) AUTHORIZATIONS. The Company has no licenses, permits,
         approvals and other authorizations from any governmental agencies and
         any other entities that are materially necessary for the conduct of its
         business.

                  (l) NO POWERS OF ATTORNEY. The Company has no powers of
         attorney or similar authorizations outstanding.

                  (m) COMPLIANCE WITH LAWS. To the Company's knowledge, the
         Company is not in violation of any federal, state, local or other law,
         ordinance, rule or regulation applicable to its business, and has not
         received any actual or threatened complaint, citation or notice of
         violation or investigation from any governmental authority, in each
         case where such violation would have a material adverse effect on the
         Company.

                  (n) NO LITIGATION. To the Company's knowledge, there are no
         actions, suits, claims, complaints or proceedings pending or threatened
         against the Company, at law or in equity, or before or by any
         governmental department, commission, court, board, bureau, agency or
         instrumentality; and to the Company's knowledge, there are no facts
         which would provide a valid basis for any such action, suit or
         proceeding, which, if determined adversely to the Company, would have a
         material adverse effect on the Company. There are no orders, judgments
         or decrees of any governmental authority outstanding which specifically
         apply to the Company or any of its assets.

                  (o) VALIDITY. All material contracts, agreements, leases and
         licenses to which the Company is a party or by which it or any of its
         material properties or assets are bound or affected, are valid and in
         full force and effect; and to Company's knowledge, no breach or default
         exists, or upon the giving of notice or lapse of time, or both, would
         exist, on the part of the Company or by any other party thereto.

                  (p) NO ADVERSE CHANGES. Since April 30, 2005, there has been
         no actual or threatened development of a nature that is materially
         adverse to or involves any materially adverse effect upon the business,
         financial condition, results of operations, assets, liabilities, or
         prospects of the Company.

                                       5
<PAGE>

                  (q) FEES. All negotiations relating to the Basic Agreements
         and the Transactions have been conducted by the Company and the Seller
         in such a manner as not to give rise to any valid claim for any
         finder's fees, brokerage commission, financial advisory fee or related
         expense or other like payment for which the Company or Buyer are or may
         be liable.

                  [(r) SUBSIDIARIES. At Closing the Company shall own One
         Hundred Percent (100%) of all issued and outstanding stock of Gem
         Manufacturing, Inc., a Nevada Corporation, and Diamond Channel, Inc., a
         Nevada Corporation. (collectively referred to as "Subsidiaries"). The
         Subsidiaries have no outstanding options, warrants, calls, rights or
         commitments, agreements, arrangements or undertakings of any kind,
         which the Company is a party or by which is bound or obligated ]

                  (s) FULL DISCLOSURE. All statements of the Seller and the
         Company contained in the Basic Agreements and in any other written
         documents delivered by or on behalf of the Company or Seller to Buyer
         are true and correct in all material respects and do not omit any
         material fact necessary to make the statements contained therein not
         misleading in light of the circumstances under which they were made.

         2.2 ADDITIONAL REPRESENTATIONS AND WARRANTIES OF SELLER. Seller
represents and warrants to Buyer, with respect to the Company Shares owned by
Seller as of the Effective Date and as of the Closing, as follows:

                  (a) AUTHORITY. Seller has full power and lawful authority to
         execute and deliver the Basic Agreements and to consummate and perform
         the Transactions contemplated hereby. The Basic Agreements have been
         validly executed and delivered by the Seller. The Basic Agreements
         constitute (or shall, upon execution, constitute) valid and legally
         binding obligations upon Seller, enforceable in accordance with their
         terms. Neither the execution and delivery of the Basic Agreements by
         Seller, nor the consummation and performance of the Transactions
         contemplated thereby, conflicts with, requires the consent, waiver or
         approval of, results in a breach of, or default under, or gives to
         others any interest or right of termination, cancellation or
         acceleration in or with respect to, any material agreement by which
         Seller is a party or by which a Seller or any of its material
         properties, or assets are bound or affected.

                  (b) TITLE TO THE COMPANY SHARES. Immediately prior to the
         Closing, Seller shall own of record and beneficially the Company
         Shares, free and clear of all liens, encumbrances, pledges, claims,
         options, charges and assessments of any nature whatsoever, with full
         right and lawful authority to transfer the Company Shares to Buyer. No
         person has any preemptive rights or rights of first refusal with
         respect to any of the Company Shares There exists no voting agreement,

                                       6
<PAGE>

         voting trust, or outstanding proxy with respect to any of the Company
         Shares. There are no outstanding rights, options, warrants, calls,
         commitments, or any other agreements of any character, whether oral or
         written, with respect to the Company Shares.

                  (c) ACCESS TO INFORMATION. Seller has been provided an
         opportunity to ask questions of, and Seller has received answers
         thereto satisfactory to Seller from, Buyer and its representatives
         regarding matters pertaining to this investment, and Seller has
         obtained all additional information requested by Seller from Buyer and
         its representatives.

                  (d) ABILITY TO BEAR ECONOMIC RISKS. Seller has such knowledge
         and experience in financial affairs that Seller is capable of
         evaluating the merits and risks of an investment in the Buyer Shares.
         Seller has not relied in connection with this investment upon the
         identity of or advice from Buyer or any other investor in Buyer or upon
         any representations, warranties or agreements other than those set
         forth in this Agreement. Seller's financial situation is such that
         Seller can afford to bear the economic risk of holding the Buyer Shares
         for an indefinite period of time, and Seller can afford to suffer the
         complete loss of Seller's investment in the Buyer Shares.

                  (e) INVESTMENT INTENT. Seller is subscribing for the Buyer
         Shares pursuant to this Agreement for Seller's own account and not with
         a view to or for sale in connection with any distribution of all or any
         part of the Buyer Shares or Seller's interest in any of the Buyer
         Shares. Except as set forth on Exhibit "I" hereto, Seller hereby agrees
         that Seller will not, directly or indirectly, transfer, offer, sell,
         pledge, hypothecate or otherwise dispose of all or any part of the
         Buyer Shares or Seller's interest in any of the Buyer Shares (or
         solicit any offers to buy, purchase or otherwise acquire or take a
         pledge of all or any part thereof) except in a manner that does not
         violate the registration or any other applicable provisions of the
         Securities Act (or any other applicable federal securities laws) or any
         applicable state securities laws. Seller understands that Seller must
         bear the economic risk of an investment in the Buyer Shares for an
         indefinite period of time because, among other reasons, the offering
         and sale of the Buyer Shares have not been registered under the
         Securities Act, and therefore, the Buyer Shares cannot be sold unless
         they are subsequently registered under the Securities Act or an
         exemption from such registration is available.

                  (f) ACCREDITATION. Seller qualifies as an "accredited
         investor" (as such term is defined in Rule 501 of Regulation D
         promulgated under the Securities Act).

         2.3 REPRESENTATIONS AND WARRANTIES OF BUYER. Buyer represents and
warrants to Seller as of the Effective Date and as of the Closing as follows:

                                       7
<PAGE>

                  (a) ORGANIZATION. Buyer is a corporation duly incorporated,
         validly existing and in good standing under the laws of the state of
         Colorado. Buyer has all requisite corporate power and authority to own,
         lease and operate its properties and to carry on its business. Buyer is
         duly qualified and in good standing as a foreign corporation in each
         jurisdiction where its ownership of property or operation of its
         business requires qualification, except where the failure to be
         qualified would not have a material adverse effect on the Buyer.

                  (b) AUTHORIZED CAPITALIZATION. The authorized capitalization
         of Buyer consists of One Hundred Ninety-Five Million (195,000,000)
         shares of Buyer Common Stock and Five Million Fifty-Thousand
         (5,050,000) shares of $.0001 par value Preferred Stock, of which Eleven
         Million Four Hundred Sixty Five Thousand Nine Hundred Eighty
         (11,465,980) shares of Buyer Common Stock will be issued and
         outstanding prior to Closing. Buyer represents that no Preferred Shares
         are outstanding. The Buyer Shares have been duly authorized, validly
         issued, are fully paid and nonassessable. The Buyer Shares when issued
         will be offered, issued, sold and delivered by Buyer in compliance with
         all applicable state and federal securities laws and will be free and
         clear of all liens, claims and encumbrances of every kind and nature,
         other than as imposed by securities laws. Buyer is not a party to and
         is not bound by any agreement, contract, arrangement or understanding,
         whether oral or written, giving any person or entity any interest in,
         or any right to share, participate in or receive any portion of,
         Buyer's income, profits or assets, or obligating Buyer to distribute
         any portion of its income, profits or assets, except for ordinary
         course commercial contracts. Except as set forth in Exhibit "J", there
         are no bonds, debentures, notes or other indebtedness of Buyer having
         the right to vote on any matters on which stockholders of Buyer may
         vote. Except as set forth in Exhibit "J", there are no outstanding
         options, warrants, calls, rights, commitments, agreements, arrangements
         or undertakings of any kind to which the Buyer is a party or which
         binds or obligates the Buyer to issue, deliver or sell, or cause to be
         issued, delivered or sold, additional shares of capital stock or other
         voting securities of the Buyer.

                  (c) AUTHORITY. Buyer has full power and lawful authority to
         execute and deliver the Basic Agreements and to consummate and perform
         the Transactions contemplated thereby. The Basic Agreements have been
         validly executed and delivered by the Buyer. The Basic Agreements
         constitute (or shall, upon execution, constitute) valid and legally
         binding obligations upon Buyer, enforceable in accordance with their
         terms. Neither the execution and delivery of the Basic Agreements by
         Buyer, nor the consummation and performance of the Transactions
         contemplated thereby, conflicts with, requires the consent, waiver or
         approval of, results in a breach of or default under, or gives to
         others any interest or right of termination, cancellation or
         acceleration in or with respect to, any material agreement by which
         Buyer is a party or by which Buyer or any of its material properties or
         assets are bound or affected.

                                       8
<PAGE>

                  (d) INVESTMENT INTENT. Buyer is acquiring the Company Shares
         for its own account, for investment purposes only, and not with a view
         to the sale or distribution of any part thereof, and Buyer has no
         present intention of selling, granting participation in, or otherwise
         distributing the same. Buyer understands the specific risks related to
         an investment in the Company Shares, especially as it relates to the
         financial performance of the Company.

                  (e) BUYER'S FINANCIAL STATEMENTS. Buyer's Financial Statements
         as of April 30, 2005 as previously delivered to Seller are complete,
         were prepared in accordance with generally accepted accounting
         principles applied on a basis consistent with prior periods and fairly
         present, in all material respects, the financial position of Buyer as
         of and for the period ending April 30, 2005. Seller has examined
         Buyer's Financial Statements and have found them acceptable and
         satisfactory.

                  (f) NO UNDISCLOSED LIABILITIES. Except as set forth in Buyer's
         Financial Statements previously delivered to the Company, Buyer is not
         aware of any material liabilities for which it is liable or will become
         liable in the future.

                  (g) MATERIAL CONTRACTS. Buyer has no purchase, sale,
         commitment, or other contract, the breach or termination of which would
         have a materially adverse effect on the business, financial condition,
         results of operations, assets, liabilities, or prospects of Buyer.

                  (h) PROPERTIES. The Buyer has good and marketable title to all
         its material personal property, equipment, processes, patents,
         copyrights, trademarks, franchises, licenses and other material
         properties and assets (except for items leased or licensed to the
         Buyer), including all property reflected in the Buyer's Financial
         Statements (except for assets reflected therein which have been sold in
         the normal course of its business where the proceeds from such sale or
         other disposition have been properly accounted for in the Financial
         Statements of the Buyer), in each case free and clear of all material
         liens, claims and encumbrances of every kind and character. The assets
         and properties owned, operated or leased by the Buyer and used in its
         business are in good operating condition, reasonable wear and tear
         excepted, and suitable for the uses for which intended.

                  (i) BOOKS AND RECORDS. The books and records of the Buyer are
         complete and correct in all material respects, have been maintained in
         accordance with good business practices and accurately reflect in all
         material respects the business, financial condition and results of
         operations of the Buyer as set forth in the Buyer's Financial
         Statements.

                                       9
<PAGE>

                  (j) TRANSACTIONS WITH CERTAIN PERSONS. Except as disclosed in
         Exhibit "K", the Buyer has no outstanding material agreement,
         understanding, contract, lease, commitment, loan or other material
         arrangement with any officer, director or shareholder of the Buyer or
         any relative of any such person, or any corporation or other entity in
         which such person owns a beneficial interest.

                  (k) NO LITIGATION. Except as set forth on Exhibit "L", there
         are no actions, suits, claims, complaints or proceedings pending or
         threatened against Buyer, at law or in equity, or before or by any
         governmental department, commission, court, board, bureau, agency or
         instrumentality; and there are no facts which would provide a valid
         basis for any such action, suit or proceeding, which, if determined
         adversely to the Buyer, would have a material adverse effect on the
         Buyer. There are no orders, judgments or decrees of any governmental
         authority outstanding which specifically apply to the Buyer or any of
         its assets.

                  (l) TAXES. Except as set forth on Exhibit "M", the Buyer has
         filed all federal, state, local tax and other returns and reports which
         were required to be filed with respect to all taxes, levies, imposts,
         duties, licenses and registration fees, charges or withholdings of
         every nature whatsoever ("Taxes"), and there exists a substantial basis
         in law and fact for all positions taken in such reports. No waivers of
         periods of limitation are in effect with respect to any taxes arising
         from and attributable to the ownership of properties or operations of
         the business of the Buyer.

                  (m) COMPLIANCE WITH LAWS. To the best of the Buyer's
         knowledge, the Buyer is not in violation of any federal, state, local
         or other law, ordinance, rule or regulation applicable to its business,
         and has not received any actual or threatened complaint, citation or
         notice of violation or investigation from any governmental authority,
         in each case where such violation would have a material adverse effect
         on the Buyer.

                  (n) USN SUBSIDIARY. Buyer owns 100% of all the issued and
         outstanding shares of USN Television Group, Inc. ("Buyer's Subsidiary")
         and its officers, directors and former shareholders have disclosed to
         the best of their knowledge to Buyer's Auditors all assets, liabilities
         and contingencies including but not limited to consulting and licensing
         Agreements that could have a material impact on Buyer's Subsidiary, and
         are reflected accurately in the Buyer's 8-K/A filed on April 26, 2005.
         All of the representations and warranties made by Buyer are deemed to
         be made by Buyer's Subsidiary MUTATIS MUTANDIS, as if made by Buyer's
         Subsidiary.

                                       10
<PAGE>

                  (o) AUTHORIZATIONS. Buyer has no licenses, permits, approvals
         and other authorizations from any governmental agencies and any other
         entities that are materially necessary for the conduct of its business.

                  (p) NO POWERS OF ATTORNEY. Buyer has no powers of attorney of
         similar authorizations outstanding.

                  (q) VALIDITY. All material contracts, agreements, leases and
         licenses to which Buyer is a party or by which it or any of its
         material properties or assets are bound or affected, are valid and in
         full force and effect; and to the best knowledge of Buyer, no breach or
         default exists, or upon the giving of notice or lapse of time, or both,
         would exist, on the part of Buyer or by any other party thereto.

                  (r) NO ADVERSE CHANGES. Since April 30, 2005, there has been
         no actual or threatened development of a nature that is materially
         adverse to or involves any materially adverse effect upon the business,
         financial condition, results of operations, assets, liabilities, or
         prospects of Buyer.

                  (s) FEES. All negotiations relating to the Basic Agreements
         and the Transactions have been conducted by Buyer in such a manner as
         not to give rise to any valid claim for any finder's fees, brokerage
         commission, financial advisory fee or related expense or other like
         payment for which the Company or Buyer are or may be liable.

                  (t) ACCESS TO INFORMATION. Buyer has been provided an
         opportunity to ask questions of, and Buyer has received answers thereto
         satisfactory to Buyer from, Seller and Company and their respective
         representatives regarding matters pertaining to this investment, and
         Buyer has obtained all additional information requested by Buyer from
         Seller and Company and their respective representatives.

                  (u) FULL DISCLOSURE. All statements of Buyer contained in the
         Basic Agreements and in any other written documents delivered by or on
         behalf of Buyer to Company or Seller are true and correct in all
         material respects and do not omit any material fact necessary to make
         the statements contained therein no misleading in light of the
         circumstances under which they were made.

                                      III.

                                    COVENANTS
                                    ---------

         3.1 COVENANTS OF THE COMPANY. The Company covenants and agrees that
from the date hereof to the Closing, it will perform the following acts:

                                       11
<PAGE>

                  (a) ORDINARY COURSE OF BUSINESS. The Company will operate its
         business only in the ordinary course of business and will use its best
         efforts to preserve the Company's business, organization, goodwill and
         relationships with persons having business dealings with the Company.

                  (b) MAINTAIN PROPERTIES. The Company will maintain all of its
         properties in good working order, repair and condition (reasonable wear
         and use excepted) and will take all steps reasonably necessary to
         maintain in full force and effect its patents, trademarks, service
         marks, trade names, brand names, copyrights and other intangible
         assets.

                  (c) COMPENSATION. The Company will not (1) enter into or alter
         any employment agreements; (2) grant any increase in compensation other
         than normal merit increases consistent with the Company's general
         prevailing practices to any officer or employee; or (3) enter into or
         alter any labor or collective bargaining agreement or any bonus or
         other employee fringe benefit.

                  (d) NO INDEBTEDNESS. The Company will not create, incur,
         assume, guarantee or otherwise become liable with respect to any
         obligation for borrowed money, indebtedness, capitalized lease or
         similar obligation, except in the ordinary course of business
         consistent with past practices, where the entire net proceeds thereof
         are deposited with and used by and in connection with the business of
         the Company.

                  (e) MAINTAIN BOOKS. The Company will maintain its books,
         accounts and records in the usual, regular ordinary and sound business
         manner and in accordance with generally accepted accounting principles
         applied on a basis consistent with past practices.

                  (f) NO AMENDMENTS. The Company will not amend its corporate
         charter or bylaws (or similar documents) without prior the consent of
         Buyer and the Company will maintain its corporate existence, licenses,
         permits, powers and rights in full force and effect.

                  (g) TAXES AND ACCOUNTING MATTERS. The Company will file when
         due all federal, state and local tax returns and reports which shall be
         accurate and complete, including but not limited to income, franchise,
         excise, ad valorem, and other taxes with respect to its business and
         properties, and to pay as they become due all taxes or assessments,
         except for taxes for which adequate reserves are established and which
         are being contested in good faith by appropriate proceedings. The
         Company will not change its accounting methods or practices or any
         depreciation, amortization or inventory valuation policies or
         practices.

                                       12
<PAGE>

                  (h) NO DISPOSITION OR ENCUMBRANCE. Except in the ordinary
         course of business consistent with past practices, the Company will not
         (1) dispose of or encumber any of its properties and assets, (2)
         discharge or satisfy any lien or encumbrance or pay any obligation or
         liability (fixed or contingent) except for previously scheduled
         repayment of debt, (3) cancel or compromise any debt or claim, (4)
         transfer or grant any rights under any concessions, leases, licenses,
         agreements, patents, inventions, proprietary technology or process,
         trademarks, service marks or copyrights, or with respect to any
         know-how, or (5) enter into or modify in any material respect or
         terminate any existing license, lease, or contract.

                  (i) NO SECURITIES ISSUANCES. The Company will not issue any
         shares of any class of capital stock, or enter into any contract,
         option, warrant or right calling for the issuance of any such shares of
         capital stock, or create or issue any securities convertible into any
         securities of the Company.

                  (j) NO DIVIDENDS. The Company will not declare, set aside or
         pay any dividends or other distributions of any nature whatsoever.

                  (k) NO BREACH. The Company will not do any act or omit to do
         any act which would cause a breach of any of its material contracts,
         commitments or obligations.

                  (l) DUE COMPLIANCE. The Company will comply with all laws,
         regulations, rules and ordinances applicable to it and to the conduct
         of its business, the violation of which would have a material adverse
         effect on the Company.

                  (m) NO WAIVERS OF RIGHTS. The Company will not amend,
         terminate or waive any material right whether or not in the ordinary
         course of business.

                  (n) NO RELATED PARTY TRANSACTIONS. The Company will not make
         any loans to, or enter into any transaction, agreement, arrangement or
         understanding of any material nature with any of its officers,
         directors or employees.

                  (o) NOTICE OF CHANGE. The Company will promptly advise Buyer
         in writing of any material adverse change, or the occurrence of any
         event which involves any substantial possibility of a material adverse
         change, in its business, financial condition, results of operations,
         assets, liabilities or prospects.

                  (p) CONSENTS. The Company will use its best good faith efforts
         to obtain the consent or approval of each person or entity whose
         consent or approval is required for the consummation of the
         Transactions contemplated hereby and to do all things necessary to
         consummate the Transactions contemplated by the Basic Agreements.

                                       13
<PAGE>

         3.2 COVENANTS OF BUYER. Buyer covenants and agrees that from the date
hereof to the Closing, it will perform the following acts:

                  (a) ORDINARY COURSE OF BUSINESS. Buyer will operate its
         business only in the ordinary course of business and will use its best
         efforts to preserve Buyer's business, organization, goodwill and
         relationships with persons having business dealings with Buyer.

                  (b) MAINTAIN PROPERTIES. Buyer will maintain all of its
         properties in good working order, repair and condition (reasonable wear
         and use excepted) and will take all steps reasonably necessary to
         maintain in full force and effect its patents, trademarks, service
         marks, trade names, brand names, copyrights and other intangible
         assets.

                  (c) COMPENSATION. Buyer will not (1) enter into or alter any
         employment agreements; (2) grant any increase in compensation other
         than normal merit increases consistent with Buyer's general prevailing
         practices to any officer or employee; or (3) enter into or alter any
         labor or collective bargaining agreement or any bonus or other employee
         fringe benefit.

                  (d) NO INDEBTEDNESS. Buyer will not create, incur, assume,
         guarantee or otherwise become liable with respect to any obligation for
         borrowed money, indebtedness, capitalized lease or similar obligation,
         except in the ordinary course of business consistent with past
         practices, where the entire net proceeds thereof are deposited with and
         used by and in connection with the business of Buyer.

                  (e) MAINTAIN BOOKS. Buyer will maintain its books, accounts
         and records in the usual, regular ordinary and sound business manner
         and in accordance with generally accepted accounting principles applied
         on a basis consistent with past practices.

                  (f) NO AMENDMENTS. Buyer will not amend its corporate charter
         or bylaws (or similar documents) without the prior consent of the
         Company (except as described above in Section 1.4(a) and Buyer will
         maintain its corporate existence, licenses, permits, powers and rights
         in full force and effect.

                  (g) TAXES AND ACCOUNTING MATTERS. Except with the prior
         written consent of Company, Buyer will file when due all federal, state
         and local tax returns and reports which shall be accurate and complete,
         including but not limited to income, franchise, excise, ad valorem, and
         other taxes with respect to its business and properties, and to pay as
         they become due all taxes or assessments, except for taxes for which
         adequate reserves are established and which are being contested in good
         faith by appropriate proceedings. Buyer will not change its accounting
         methods or practices or any depreciation, amortization or inventory
         valuation policies or practices.

                                       14
<PAGE>

                  (h) NO DISPOSITION OR ENCUMBRANCE. Except in the ordinary
         course of business consistent with past practices, Buyer will not (1)
         dispose of or encumber any of its properties and assets, (2) discharge
         or satisfy any lien or encumbrance or pay any obligation or liability
         (fixed or contingent) except for previously scheduled repayment of
         debt, (3) cancel or compromise any debt or claim, (4) transfer or grant
         any rights under any concessions, leases, licenses, agreements,
         patents, inventions, proprietary technology or process, trademarks,
         service marks or copyrights, or with respect to any know-how, or (5)
         enter into or modify in any material respect or terminate any existing
         license, lease, or contract.

                  (i) NO SECURITIES ISSUANCES. Other than as contemplated by
         that certain Asset Purchase Agreement, dated as of June __, 2005, by
         and among Buyer and LSG Holdings, Inc., Buyer will not issue any shares
         of any class of capital stock, or enter into any contract, option,
         warrant or right calling for the issuance of any such shares of capital
         stock, or create or issue any securities convertible into any
         securities of Buyer.

                  (j) NO DIVIDENDS. Buyer will not declare, set aside or pay any
         dividends or other distributions of any nature whatsoever.

                  (k) NO BREACH. Buyer will not do any act or omit to do any act
         which would cause a breach of any of its material contracts,
         commitments or obligations.

                  (l) DUE COMPLIANCE. Buyer will comply with all laws,
         regulations, rules and ordinances applicable to it and to the conduct
         of its business, the violation of which would have a material adverse
         effect on Buyer.

                  (m) NO WAIVERS OF RIGHTS. Buyer will not amend, terminate or
         waive any material right whether or not in the ordinary course of
         business.

                  (n) NO RELATED PARTY TRANSACTIONS. Buyer will not make any
         loans to, or enter into any transaction, agreement, arrangement or
         understanding of any material nature with any of its officers,
         directors or employees.

                  (o) NOTICE OF CHANGE. Buyer will promptly advise Company in
         writing of any material adverse change, or the occurrence of any event
         which involves any substantial possibility of a material adverse
         change, in its business, financial condition, results of operations,
         assets, liabilities or prospects.

                                       15
<PAGE>

                  (p) CONSENTS. Buyer will use its best good faith efforts to
         obtain the consent or approval of each person or entity whose consent
         or approval is required for the consummation of the Transactions
         contemplated hereby and to do all things necessary to consummate the
         Transactions contemplated by the Basic Agreements.

                                       IV.

                           CONDITIONS PRECEDENT TO THE
                          OBLIGATIONS OF BUYER TO CLOSE
                          -----------------------------

         The obligation of Buyer to close the Transactions contemplated hereby
is subject to the fulfillment by the Company and Seller prior to Closing of each
of the following conditions, which may be waived in whole or in part by Buyer:

         4.1 COMPLIANCE WITH REPRESENTATIONS, WARRANTIES AND COVENANTS. The
representations and warranties of the Company and Seller contained in this
Agreement shall have been true and correct when made and shall be true and
correct as of the Closing with the same force and effect as if made at the
Closing. The Company and Seller shall have performed all agreements, covenants
and conditions required to be performed by the Company and Seller prior to the
Closing.

         4.2 NO ADVERSE CHANGE. Subsequent to the date hereof and prior to the
Closing, there shall have been no event which has had or may have a material
adverse effect upon the business, financial condition, results of operation,
assets, liabilities or prospects of the Company.

         4.3 NO LEGAL PROCEEDINGS. No suit, action or other legal or
administrative proceeding before any court or other governmental agency shall be
pending or threatened seeking to enjoin the consummation of the Transactions
contemplated hereby.

         4.4 DOCUMENTS TO BE DELIVERED BY THE COMPANY AND SELLER. The Company
and Seller shall have delivered the following documents:

                  (a) Stock powers representing all of the Company Shares, duly
         endorsed to Buyer, copies of which are attached as Exhibit "C".

                  (b) A copy of (i) the Articles of Incorporation of the
         Company; and (ii) the Bylaws of the Company; and (iii) a certificate
         from the Hong Kong Registrar of Companies, to the effect that the
         Company is in good standing and has paid all fees and levies;

                  (c) All agreements referred to in paragraph 1.4 above,
         executed by all parties thereto other than Buyer.

                                       16
<PAGE>

                  (d) All corporate and other records of or applicable to the
         Company including but not limited to, current and up-to-date minute
         books, stock transfer books and registers, books of accounts, leases
         and material contracts.

                  (e) Such other documents or certificates as shall be
         reasonably required by Buyer or its counsel in order to close and
         consummate this Agreement.

                  (f) Buyer shall have been presented evidence, reasonably
         satisfactory to Buyer, that (i) the Company has available net assets
         and notes receivable on hand of $5,000,000 , or (ii) Seller shall
         otherwise deliver to Buyer at Closing, available net assets on hand and
         notes receivable of $5,000,000.

                                       V.

                           CONDITIONS PRECEDENT TO THE
                 OBLIGATIONS OF THE COMPANY AND SELLER TO CLOSE
                 ----------------------------------------------

         The obligation of the Company and Seller to close the Transactions is
subject to the fulfillment prior to Closing of each of the following conditions,
any of which may be waived in whole or in part by the Company and Seller:

         5.1 COMPLIANCE WITH REPRESENTATIONS, WARRANTIES AND COVENANTS. The
representations and warranties made by Buyer in this Agreement shall have been
true and correct when made and shall be true and correct in all material
respects at the Closing with the same force and effect as if made at the
Closing, and Buyer shall have performed all agreements, covenants and conditions
required to be performed by Buyer prior to the Closing.

         5.2 NO ADVERSE CHANGE. Subsequent to the date hereof and prior to the
Closing, there shall have been no event which has had or may have a material
adverse effect upon the business, financial condition, results of operation,
assets, liabilities or prospects of the Buyer.

         5.3 NO LEGAL PROCEEDINGS. No suit, action or other legal or
administrative proceedings before any court or other governmental agency shall
be pending or threatened seeking to enjoin the consummation of the Transactions
contemplated hereby.

         5.4 DOCUMENTS TO BE DELIVERED BY THE BUYER. Buyer shall have delivered
the following documents:

                  (a) Certificates representing the Buyer Shares, duly signed by
         Buyer;

                                       17
<PAGE>

                  (b) A copy of (i) the Articles of Incorporation of the Buyer;
         and (ii) the Bylaws of the Company; and (iii) a certificate from the
         Colorado Secretary of State, to the effect that Buyer is in good
         standing and has paid all fees and levies;

                  (c) All agreements referred to in paragraph 1.4 above,
         executed by all parties thereto other than Company and Seller;

                  (d) A copy of all corporate and other records of or applicable
         to Buyer including but not limited to, current and up-to-date minute
         books, stock transfer books and registers, books of accounts, leases
         and material contracts; and

                  (e) Such other documents or certificates as shall be
         reasonably required by Company and/or Seller or its counsel in order to
         close and consummate this Agreement.

                                       VI.

                       MODIFICATION, WAIVERS, TERMINATION
                                  AND EXPENSES
                                  ------------

         6.1 MODIFICATION. Buyer, the Company and Seller may amend, modify or
supplement this Agreement in any manner as they may mutually agree in writing.

         6.2 WAIVERS. Buyer, the Company and Seller may in writing extend the
time for or waive compliance by the other with any of the covenants or
conditions of the other contained herein.

         6.3 TERMINATION AND ABANDONMENT. This Agreement may be terminated and
the purchase of the Shares may be abandoned before the Closing:

                  (a) By the mutual consent of Seller, the Company and Buyer;

                  (b) By Buyer, if the conditions precedent set forth in Article
         IV shall have not have been satisfied in all material respects;

                  (c) By the Company or Seller, if the conditions precedent set
         forth in Article V shall not have been satisfied in all material
         respects;

                  (d) By either party in the event of a material breach by the
         other party hereto of any representation, warranty, covenant or
         agreement contained herein, which is not cured within ten (10) days
         after written notice of such breach is given to the party committing
         such breach by the complaining party; or

                  (e) By either party, in the event the Closing does not occur
         on or before June 30, 2005.

                                       18
<PAGE>

         Termination shall be effective on the date of receipt of written notice
specifying the reasons therefor. No termination of this Agreement hereunder for
any reason or in any manner, shall release, or be construed as to release, any
party hereto from any liability or damage to the other party hereto arising out
of, in connection with or otherwise relating to, directly or indirectly said
parties' material and bad faith breach, default or failure in performance of any
of its covenants, agreements, duties or obligations arising hereunder, or any
breaches of any representation or warranty contained herein.

                                      VII.

                                  MISCELLANEOUS
                                  -------------

         7.1 REPRESENTATIONS AND WARRANTIES TO SURVIVE. Unless otherwise
provided, all of the representations and warranties contained in this Agreement
and in any certificate, exhibit or other document delivered pursuant to this
Agreement shall survive the Closing for a period of two (2) years. No
investigation made by any party hereto or their representatives shall constitute
a waiver of any representation or warranty, and no such representation or
warranty shall be merged into the Closing.

         7.2 BINDING EFFECT OF THE BASIC AGREEMENTS. The Basic Agreements and
the certificates and other instruments delivered by or on behalf of the parties
pursuant thereto constitute the entire agreement between the parties. The terms
and conditions of the Basic Agreements shall inure to the benefit of and be
binding upon the respective heirs, legal representatives, successor and assigns
of the parties hereto. Nothing in the Basic Agreements, expressed or implied,
confers any rights or remedies upon any party other than the parties hereto and
their respective heirs, legal representatives and assigns.

         7.3 APPLICABLE LAW. The Basic Agreements are made pursuant to, and will
be construed under, the laws of the State of California.

         7.4 NOTICES. All notices, requests, demands and other communications
hereunder shall be in writing and will be deemed to have been duly given when
delivered or on the second business day after mailed, first class postage
prepaid:

                  (a) If to Seller, to:

                                    Global Sun Enterprises Limited
                                    ATTN: _____________________
                                    ___________________________
                                    ___________________________

                                       19
<PAGE>

                                    TELEPHONE: (    )
                                    FAX: (    )

                  (b) If to Buyer, to:

                                    USN Corporation
                                    ATTN: Chief Executie Officer
                                    2121 Avenue of the Stars, 29th Floor
                                    Los Angeles, CA   90067
                                    TELEPHONE:  (310) 229-2211
                                    FAX: (310) 203-9863

         These addresses may be changed from time to time by written notice to
the other parties.

         7.5 HEADINGS. The headings contained in this Agreement are for
reference only and will not affect in any way the meaning or interpretation of
this Agreement.

         7.6 COUNTERPARTS. This Agreement may be executed in counterparts, each
of which will be deemed an original and all of which together will constitute
one instrument.

         7.7 SEVERABILITY. If any one or more of the provisions of this
Agreement shall, for any reason, be held to be invalid, illegal or unenforceable
under applicable law this Agreement shall be construed as if such invalid,
illegal or unenforceable provision had never been contained herein. The
remaining provisions of this Agreement shall be given effect to the maximum
extent then permitted by law.

         7.8 FORBEARANCE; WAIVER. Failure to pursue any legal or equitable
remedy or right available to a party shall not constitute a waiver of such
right, nor shall any such forbearance, failure or actual waiver imply or
constitute waiver of subsequent default or breach.

         7.9 ATTORNEYS' FEES AND EXPENSES. The prevailing party in any legal
proceeding based upon this Agreement shall be entitled to reasonable attorneys'
fees and expenses and court costs.

                                       20
<PAGE>

         7.10 EXPENSES. Each party shall pay all fees and expenses incurred by
it incident to this Agreement and in connection with the consummation of all
transactions contemplated by this Agreement. However, should either party choose
to terminate this Agreement under Section 6.3(a), that party initiating the
termination shall be responsible for all legal fees and other expenses incurred
in connection with the preparation of this Agreement.

         7.11 EXHIBITS. All of the Exhibits to this Agreement are incorporated
herein in the places referenced in this Agreement as if fully set forth herein.

         7.12 INTEGRATION. This Agreement and all documents and instruments
executed pursuant hereto merge and integrate all prior agreements and
representations respecting the Transactions, whether written or oral, and
constitute the sole agreement of the parties in connection therewith. This
Agreement has been negotiated by and submitted to the scrutiny of both Seller
and Buyer and their counsel and shall be given a fair and reasonable
interpretation in accordance with the words hereof, without consideration or
weight being given to its having been drafted by either party hereto or its
counsel.

         7.13 KNOWLEDGE.

                  (a) For purposes of this Agreement, the "Company's knowledge"
         with respect to a particular fact or other matter shall mean the actual
         knowledge of documents included herewith without any duty of inquiry.

                  (b) For purposes of this Agreement, "the knowledge of Buyer"
         with respect to a particular fact or other matter shall mean the actual
         knowledge of documents included herewith without any duty of inquiry.

         7.14 BOARD REPRESENTATION. From and after the Closing, Buyer hereby
         agrees to take such action as is reasonably necessary to cause the
         Buyer's Board of Directors to nominate, for election by the Buyer's
         stockholders, Two (2) directors to be appointed by Seller and to cause
         meetings of the Board of Directors of Buyer to be held not less
         frequently than quarterly. Buyer agrees that it wil notify Seller, in
         writing, at least twenty (20) days prior to any meeting of the
         Shareholders and/or Directors.

         7.15 INDEMNITY.

         A. Buyer hereby agrees to indemnify and hold Seller harmless in respect
of the aggregate of Indemnifyable Damages of Seller. For the purposes of this
Agreement, "Indemnifyable Damages of Seller" shall mean the aggregate of all
expenses, losses, costs, deficiencies, claims and damages (including reasonable
related counsel fees and expenses) incurred by Seller from (i) any inaccurate
representation or warranty made by Buyer in this Agreement; and (ii) any default
in the performance any of the covenants or agreements made by Buyer in this
Agreement.

                                       21
<PAGE>

         B. Seller hereby agrees to indemnify and hold Buyer harmless in respect
of the aggregate of Indemnifyable Damages of Buyer. For the purposes of this
Agreement, "Indemnifyable Damages of Buyer" shall mean the aggregate of all
expenses, losses, costs, deficiencies, claims and damages (including reasonable
related counsel fees and expenses) incurred by Buyer from (i) any inaccurate
representation or warranty made by Seller or Company in this Agreement; and (ii)
any default in the performance any of the covenants or agreements made by Seller
in this Agreement or made by Company in this Agreement, to the extent to be
performed by Company prior to the Closing.

         7.16 LINE OF CREDIT. Seller represents, covenants and agrees that the
Company's current $3.0 million vendor line of credit for the purchase of
jewelry, for resale, from the vendors providing such line of credit, will be
available to the Company and to Buyer for a period of one year from and after
the Closing, subject to the terms and conditions contained in such line of
credit. Buyer covenants and agrees to comply with and satisfy all the terms and
conditions of the line of credit as they may be changed from time to time by
lender of the line of credit.

         7.17 BUYER MAJORITY SHAREHOLDERS. The parties acknowledge and agree
that the shareholders of Buyer, as a class, do not have the right to vote upon
or approve the transactions contemplated hereby. However, the Buyer has informed
Brian Kelly and Michael Reinstein, collectively the holders of a majority of the
outstanding Buyer Common Stock, of the transactions contemplated hereby, and
such shareholders have approved of such transactions.

                           [SIGNATURE PAGES TO FOLLOW]

                                       22
<PAGE>

         IN WITNESS WHEREOF, the undersigned parties hereto have duly executed
this Agreement on the date first written above.

                                       "BUYER"

                                       USN CORPORATION
                                       A COLORADO CORPORATION

                                       BY: /S/ TERRY WASHBURN
                                           -----------------------------
                                           TERRY WASHBURN, PRESIDENT

                                       "THE COMPANY"

                                       ALTRON LIMITED
                                       A HONG KONG CORPORATION

                                       BY: /S/ CHUN HUNG CHIN
                                           -----------------------------
                                           CHUN HUNG CHIN, DIRECTOR

                                       "SELLER"

                                       GLOBAL SUN ENTERPRISES LTD
                                       A BRITISH VIRGIN ISLANDS COMPANY

                                       BY: /S/ HITESH KUMAR UPENDRA BHAI
                                           -----------------------------
                                           HITESH KUMAR UPENDRA BHAI,
                                           DIRECTOR

                                       23
<PAGE>

THE FOLLOWING INDIVIDUALS HAVE EXECUTED THIS AGREEMENT SOLELY WITH RESPECT TO
SECTION 7.17.

                                           /S/ BRIAN KELLY
                                           -----------------------------
                                           BRIAN KELLY

                                           /S/ MICHAEL REINSTEIN
                                           -----------------------------
                                           MICHAEL REINSTEIN

                                       24

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