Document:

EXHIBIT 10.7

                              EMPLOYMENT AGREEMENT
                              --------------------

         THIS EMPLOYMENT AGREEMENT ("Agreement"), dated as of the 1st day of
January 2003, is made by and between JAMES D. BAKER ("Employee") and Q-NET
TECHNOLOGIES, INC., (the "Company") a Delaware corporation.

                              W I T N E S S E T H:

         WHEREAS, the Company and Employee mutually desire to enter into this
Agreement with respect to Employee's full-time employment with the Company on
the terms set forth herein.

         A. WHEREAS The Company is engaged in the business ("Company Business")
         of developing and operating a China based business involved in:

               (a)  The development and marketing of the Q-Reader electronic
                    book reading device for the Chinese market;

               (b)  The development and marketing of Thin Client Server
                    applications and services to the Chinese market;

               (c)  The provision of various Internet services to the Chinese
                    markets;

               (d)  The development of Chinese business solution software for
                    the Chinese market.

         B. WHEREAS The Company desires to retain the Employee to act as
         President and Chief Executive Officer of the Company and to provide
         full time services to the Company on the terms and subject to the
         conditions of this Agreement.

         C. WHEREAS The Employee has agreed to act as President and Chief
         Executive Officer of the Company and to provide full time services to
         the Company on the terms and subject to the conditions of this
         Agreement.

         THIS AGREEMENT WITNESSES THAT in consideration of the premises and
mutual covenants contained in this Agreement and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties, intending to be legally bound hereby, agree as follows:

         NOW, THEREFORE, in consideration of the foregoing and the mutual
promises and agreements herein contained, and intending to be legally bound,
Employee and the Company hereby agree as follows:

James D. Baker
Q-Net Technologies, Inc.                  1                         CONFIDENTIAL

<PAGE>

         1. Position. The Company agrees to employ Employee and Employee hereby
agrees to serve the Company during the Term (as hereinafter defined) as
PRESIDENT AND CHIEF EXECUTIVE OFFICER, and to perform the following services and
undertake the following responsibilities and duties to the Company:

         (a)  Exercising general direction and supervision over the business
              and financial affairs of the Company, including managing and
              overseeing the business operations of the Company's operating
              subsidiaries and China operations;

         (b)  Providing overall direction to the management of the Company;

         (c)  Reporting directly to board of directors of Company;

         (d)  Performing such other duties and observing such instructions as
              may be reasonably assigned from time to time by or on behalf of
              the board of directors of the Company in the Employee's capacity
              as President and Chief Executive Officer, provided such duties
              are within the scope of the Company's business and implementation
              of the Company's business plan;

         (e)  Discharging all obligations under all applicable laws and
              complying with all applicable laws as the chief executive officer
              and president of the Company imposed as a consequence of the
              Company being a reporting company under the Securities Exchange
              Act of 1934

         2. Term. The Term of this Agreement shall commence as of the date
hereof (the "Commencement Date") and shall, unless sooner terminated in
accordance with the provisions hereof, continue uninterrupted for an initial 3
year term and thereafter shall be automatically renewed for successive one-year
periods unless terminated by either party upon THREE (3) MONTHS written notice
prior to the end of any Term. As used herein, the term "TERM" shall refer to
such initial term and any renewal term then in effect.

         3. Board of Directors. Throughout the Term of this Agreement, the
Company shall also nominate the Employee to serve as a member of the Board and
upon such nomination Employee shall agree to so serve.

         4. Devotion of Time; Duties. During the Term and in compliance with
lawful requirements of his employment, Employee agrees to devote his FULL time,
energy and skill during regular business hours to such employment; to perform
such duties related to his position which may from time to time be assigned to
him by the Company; and to use his efforts, skills and ability to promote its
interests, provided, however, the Employee may engage in reasonable investment
and other personal activities that do not interfere with the Employee's
obligations hereunder.

James D. Baker
Q-Net Technologies, Inc.                  2                         CONFIDENTIAL

<PAGE>

         5. Compensation

         During the term of this Agreement, the Company shall pay the Employee
various cash compensations according to the following schedules:

         (a)  Signing Bonus. In consideration for acceptance of position,
              Employee will be paid a signing bonus of $30,000.

         (b)  Initial Salary. Commencing on February 1, 2003 and monthly on the
              first of each month thereafter for eleven (12) months, Company
              will pay Employee a monthly salary of $12,000. Of this amount,
              $2,000 will be paid in stock.

         (c)  Salary for Balance of Term. For the second year commencing on
              February 1, 2004, and for the balance of the term, Company will
              pay Employee a monthly salary to be determined by the
              Compensation Committee of the Board of Directors.

         (d)  Bonuses. An annual bonus will be paid within 60 days of the end
              of each calendar year commencing the first annual bonus on
              December 31, 2003, in an amount determined by the Compensation
              Committee of the Board of Directors based upon the performance of
              the Company.

         (e)  Fringe Benefits. The Employee shall be entitled to participate in
              all health and dental insurance, disability, sick leave, paid
              holidays, and other fringe benefit programs of the Employer to
              the extent and on the same terms and conditions as are accorded
              to other officers and key employees of the Employer which shall
              be disclosed to Employee. Employee shall be entitled to four (4)
              weeks vacation each year during the Term of this agreement.

         (f)  Shares. During the term of this Agreement, the Company will issue
              the following shares of the Company's common stock to the
              Employee pursuant to Section 4(2) of the Securities Act of 1933
              (the "1933 Act") as restricted shares within the meaning of the
              1933 Act:

                  1. 250,000 shares upon execution of this Agreement;

                  2. 250,000 shares upon the Company achieving either (i)
                  consolidated EBITDA of $ 100,000; or (ii) consolidated
                  revenues in excess of $ 3,000,000 in fiscal year 2003, each as
                  determined from the Company's audited financial statements;

James D. Baker
Q-Net Technologies, Inc.                  3                         CONFIDENTIAL

<PAGE>

                  3. An additional 250,000 shares upon the Company
                  achieving either (i) consolidated EBITDA of $ 1,000,000; or
                  (ii) consolidated revenues in excess of $10,000,000 in fiscal
                  year 2003, each as determined from the Company's audited
                  financial statements;

                  4. For the fiscal years ending 2004 and 2005 the Compensation
                  Committee of the Board of Directors will determine these
                  amounts and criteria by September 30th, 2003 and September
                  30th, 2004.

         (g)  Options

         Upon acceptance of employment and at the conclusion of the next Board
         meeting thereafter, the Employee will be granted incentive stock
         options to purchase shares of the Company's common stock in the
         following amounts and with the following vesting dates (the "Stock
         Options"):

                  1. Options, granted at market price, to purchase 100,000
                  shares of the Company's common stock vesting upon execution of
                  this Agreement,

                  2. Options, granted at market price, to purchase 100,000
                  shares of the Company's common stock vesting on March 31st,
                  June 30, and September 30th, 2003,

                  3. Options, granted at market price, for fiscal years 2004 and
                  2005 will be determined by the Compensation Committee of the
                  Board of Directors by September 30th 2003 and September 30th
                  2004.

         All Stock Options will be subject to the terms and conditions of the
         Company's 2001 Stock Option Plan, a copy of which has been delivered to
         the Employee, or a new Stock Option Plan that contains similar terms
         and conditions. The Employee acknowledges and agrees that (i) the
         Employee will only sell any shares issued by the Company on exercise of
         any Stock Options in accordance with all applicable securities laws,
         including the Securities Act of 1933; and (ii) the shares issued upon
         exercise of any Stock Options may be subject to restrictions on resale
         imposed by applicable securities law; and (iii) the Company may legend
         all stock certificates representing the shares issued upon exercise of
         any Stock Options with applicable resale restrictions, as reasonably
         advised by the Company's legal counsel; (iv) the Employee has received
         and reviewed a copy of the Stock Option Plan.

James D. Baker
Q-Net Technologies, Inc.                  4                         CONFIDENTIAL
<PAGE>

         6. Reimbursement of Expenses

         (a)  Business Related Expenses Employee shall be entitled to
              reimbursement of reasonable and documented airfare, hotel,
              travel, transportation, entertainment, meals and other out-of
              pocket expenses related to the performance of Employee's duties,
              all subject to the policies established by the Company.

         (b)  Auto Allowance. The Company will provide the Employee with an
              auto allowance of one thousand ($1,000) per month.

         (c)  Office and Services. The Company shall furnish the Employee with
              an office and such other facilities and services suitable to the
              Executive's position and adequate for the performance of the
              Employee's duties hereunder.

         8. Termination

         (a)  The Company may terminate this Agreement at any time upon the
              occurrence of any of the following events of default (each an
              "Event of Default"):

                  1. The Employee's commission of an act of fraud, theft or
                  embezzlement or other similar willful illegal conduct;

                  2. The material breach by the Employee of his material
                  obligations or agreements under this Agreement; or

                  3. The knowing breach or failure by the Employee to comply
                  with any laws applicable to the Company

         Provided that notice of the Event of Default has been delivered to the
         Employee and provided the Employee has failed to remedy the default
         within thirty days of the date of delivery of notice of the Event of
         Default, unless the default is of a nature that cannot be remedied.

         (b) The Company may at its option terminate this Agreement in the
         absence of an Event of Default, by delivering at least one months'
         prior notice of termination to the Employee and, on the effective date
         of termination, paying to the Employee an amount equal to twelve times
         the Employee's average monthly salary for the six months prior to the
         effective date of termination, in a lump sum as severance under this
         Agreement.

James D. Baker
Q-Net Technologies, Inc.                  5                         CONFIDENTIAL
<PAGE>

                  In addition, the Company may at its option terminate this
                  Agreement in the case of the Employee's refusal to follow
                  lawful directives of the Board which is not an Event of
                  Default, by delivering at least one months' prior notice of
                  termination to the Employee and, on the effective date of
                  termination, paying to the Employee an amount equal to six
                  times the Employee's average monthly salary for the first
                  year, nine times the Employee's average monthly salary for the
                  second year, and twelve times the Employee's average monthly
                  salary for the third year for the six months prior to the
                  effective date of termination, in a lump sum as severance
                  under this Agreement. .

                  (c) The Employee may terminate this Agreement at any time in
                  the event of any breach of any material term of this Agreement
                  by the Company, provided that written notice of default has
                  been delivered to the Company and the Company has failed to
                  remedy the default within thirty days of the date of delivery
                  of notice of default.

                  (d) On termination of this Agreement for any reason, all
                  rights and obligations of each party that are expressly stated
                  to survive termination or continue after termination will
                  survive termination and continue in full force and effect as
                  contemplated in this Agreement.

         9. PROPRIETARY INFORMATION AND DEVELOPMENTS

         (a) The Employee will not at any time, whether during or after the
         termination of this Agreement for any reason, reveal to any person or
         entity any of the trade secrets or confidential information concerning
         the organization, business or finances of the Company or of any third
         party which the Company is under an obligation to keep confidential,
         except as may be required in the ordinary course of performing the
         Employee Services to the Company, and the Employee shall keep secret
         such trade secrets and confidential information and shall not use or
         attempt to use any such secrets or information in any manner which is
         designed to injure or cause loss to the Company. Trade secrets or
         confidential information shall include, but not be limited to, the
         Company's financial statements and projections, expansion proposals,
         customer lists, technologies, business plans, and business
         relationships with banks, lenders and other parties not otherwise
         publicly available.

         (b) If at any time or times during the term of this Agreement, the
         Employee shall (either alone or with others) make, conceive, create,
         discover, invent or reduce to practice any invention, modification,

James D. Baker
Q-Net Technologies, Inc.                  6                         CONFIDENTIAL

<PAGE>

         discovery, design, development, improvement, process, software program,
         work of authorship, documentation, formula, data technique, know-how,
         trade secret or intellectual property right whatsoever or any interest
         therein (whether or not patentable or registrable under copyright,
         trademark or similar statutes or subject to analogous protection)
         (herein called "Developments") that (i) relates to the business of the
         Company or any of the products or services being developed,
         manufactured or sold by the Company or which may be used in relation
         therewith, (ii) results from tasks assigned the Employee by the Company
         or (iii) results from the use of premises or personal property (whether
         tangible or intangible) owned, leased or contracted for by the Company,
         such Developments and the benefits thereof are and shall immediately
         become the sole and absolute property of the Company and its assigns,
         as works made for hire or otherwise, and the Employee shall promptly
         disclose to the Company (or any persons designated by it) each such
         Development and, as may be necessary to ensure the Company's ownership
         of such Developments. The Employee hereby assigns any rights
         (including, but not limited to, any copyrights and trademarks) the
         Employee may have or acquire in the Developments and benefits or rights
         resulting there from to the Company and its assigns without further
         compensation and shall communicate, without cost or delay, and without
         disclosing to others the same, all available information relating
         thereto (with all necessary plans and models) to the Company.

         (c) The Employee will, during the term of this Agreement and at any
         time thereafter, at the request and cost (including the Employee's
         reasonable attorney's fees) of the Company, promptly sign, execute,
         make and do all such deeds, documents, acts and things as the Company
         and, its duly authorized agents may reasonably require:

                  1. To apply for, obtain, register and vest in the name of the
                  Company alone (unless the Company otherwise directs) letters
                  patent, copyrights, trademarks or other analogous protection
                  for any Developments in any country throughout the world and
                  when so obtained or vested to renew and restore the same; and

                  2.to defend any judicial, opposition or other proceedings in
                  respect of such applications and any judicial, opposition or
                  other proceedings or petitions or applications for revocation
                  of such letters patent, copyright, trademark or other
                  analogous propose.

         In the event the Company is unable, after reasonable effort, to secure
         the Employee's signature on any application for letters patent,
         copyright or trademark registration or other documents regarding any
         legal protection relating to a Development, whether because of the
         Employee's physical or mental incapacity or for any other reason
         whatsoever, the Employee hereby irrevocably designates and appoints the
         Company and its duly authorized officers and agents as his respective
         agent and attorney-in-fact, to act for and in his behalf and stead to
         execute and file any such application or applications or other
         documents and to do all other lawfully permitted acts to further the
         prosecution, and issuance of letters patent, copyright or trademark
         registrations or any other legal protection thereon with the same legal
         force and effect as if executed by the Employee as applicable.

James D. Baker
Q-Net Technologies, Inc.                  7                         CONFIDENTIAL
<PAGE>

         (d) The obligations of the Employee set forth in Sections 9.1 and 9.2
         will survive termination of this Agreement.

         10. NON-COMPETE; NON-HIRE

         (a) The Employee agrees that, in the event of termination of this
         Agreement, for a period of one (1) year following the termination of
         this Agreement, the Employee will not, without the Company's consent,
         directly, alone or as a partner, joint venturer, officer, director,
         employee, agent, independent contractor or stockholder or other owner
         of any entity or business, engage in any business which is directly
         competitive with the Company Business (as defined in Preamble A.) ;
         provided, however, that the ownership by the Employee of not more than
         five percent (5%) of the shares of any publicly traded class of stock
         of any corporation shall not be deemed, in and of itself, to violate
         the prohibitions of this Section 10.1.

         (b) The Employee agrees that, in the event of any termination of this
         Agreement, for a period of one (1) year following such termination of
         this Agreement, the Employee will not hire or otherwise employ or
         retain any person who was employed or engaged as a Employee or employee
         by the Company as of the date of the termination of this Agreement.

         (c) The restrictions in this Section 10, to the extent applicable,
         shall be in addition to any restrictions imposed upon the Employee by
         statute or at common law.

         (d) The parties hereby acknowledge that the restrictions in this
         Section 10 have been specifically negotiated and agreed to by the
         parties hereto and are limited only to those restrictions reasonably
         necessary to protect the Company from unfair competition. The parties
         hereby agree that if the scope or enforceability of any provision,
         paragraph or subparagraph of this Section 10 is in any way disputed at
         any time, and should a court find that such restrictions are overly
         broad, the court may modify and enforce the covenant to the extent that
         it believes to be reasonable under the circumstances. Each provision,
         paragraph and subparagraph of this Section 10 is separable from every
         other provision, paragraph and subparagraph and constitutes a separate
         and distinct covenant.

         (d) The obligations and agreements of the Employee set forth in
         Sections 10(a) - (d) will survive termination of this Agreement for the
         periods specified in such sections.

         11. RELIEF

         The Employee hereby expressly acknowledges that any breach or
threatened breach by the Employee of any of the terms set forth in Section 9 or
10 of this Agreement may result in significant and continuing injury to the
Company, the monetary value of which would be impossible to establish, and any
such breach or threatened breach will provide the Company with any and all
rights and remedies to which it may be entitled under the law, including but not
limited to injunctive relief or other equitable remedies.

James D. Baker
Q-Net Technologies, Inc.                  8                         CONFIDENTIAL

<PAGE>

         12. PARTIES BENEFITED; ASSIGNMENTS

         (a)This Agreement shall be binding upon, and inure to the benefit of,
         the Employee, his heirs and his personal representative or
         representatives, and upon the Company and its successors and assigns.
         Neither this Agreement nor any rights or obligations hereunder may be
         assigned by the either party and any such assignment shall be void.

         13. NOTICES

         Any notice required or permitted by this Agreement shall be in writing,
sent by registered or certified mail, return receipt requested, or by overnight
courier, addressed to the Board and the Company at its then principal office, or
to the Employee at the address set forth below, as the case may be, or to such
other address or addresses as any party hereto may from time to time specify in
writing for the purpose in a notice given to the other parties in compliance
with this Section 13. Notices shall be deemed given when delivered. Addresses
are as follows:

                                    If to the Employee:
                                    -------------------
                                    James D. Baker
                                    P.O. Box 812286
                                    Boca Raton, FL  33481

                                    If to the Company:
                                    ------------------
                                    Q-Net Technologies, Inc.
                                    13428 Maxella Avenue, #291
                                    Marina Del Rey, CA 90292

         14. GOVERNING LAW

         This Agreement shall be governed by and construed in accordance with
the laws of the State of Nevada and each party hereto adjourns to the
jurisdiction of the courts of the State of Nevada.

         15. REPRESENTATIONS AND WARRANTIES

         The Employee represent and warrant to the Company that (a) the Employee
is under no contractual or other restriction which is inconsistent with the
execution of this Agreement, the performance of his duties hereunder or other
rights of Company hereunder, and (b) the Employee is under no physical or mental
disability that would hinder the performance of his duties under this Agreement.

James D. Baker
Q-Net Technologies, Inc.                  9                         CONFIDENTIAL

<PAGE>

         16. MISCELLANEOUS

         (a) This Agreement contains the entire agreement of the parties
         relating to the subject matter hereof.

         (b) This Agreement supersedes any prior written or oral agreements or
         understandings between the parties relating to the subject matter
         hereof.

         (c) No modification or amendment of this Agreement shall be valid
         unless in writing and signed by or on behalf of the parties hereto.

         (d) A waiver of the breach of any term or condition of this Agreement
         shall not be deemed to constitute a waiver of any subsequent breach of
         the same or any other term or condition.

         (e) This Agreement is intended to be performed in accordance with, and
         only to the extent permitted by, all applicable laws, ordinances, rules
         and regulations. If any provision of this Agreement, or the application
         thereof to any person or circumstance, shall, for any reason and to any
         extent, be held invalid or unenforceable, such invalidity and
         unenforceability shall not affect the remaining provisions hereof and
         the application of such provisions to other persons or circumstances,
         all of which shall be enforced to the greatest extent permitted by law.

         (f) The headings in this Agreement are inserted for convenience of
         reference only and shall not be a part of or control or affect the
         meaning of any provision hereof.

         (g) The Employee may assign the benefit of this Agreement to a private
         corporation controlled by the Employee, provided that such assignment
         will not relieve the Employee from his obligations to the Company
         arising under this Agreement.

         (h) This Agreement replaces and supercedes all other Employee and
         employment agreements between the Company and the Employee and any
         amendments hereto.

         (i) The Employee acknowledges and agrees that Cane O'Neill Taylor LLC
         has acted solely as legal counsel for the Company and that the Employee
         has been recommended to obtain independent legal advice prior to
         execution of this Agreement.

              [THE REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

James D. Baker
Q-Net Technologies, Inc.                  10                        CONFIDENTIAL

<PAGE>

IN WITNESS WHEREOF, the parties have duly executed and delivered this Agreement
as of the date first written above.

Q-NET TECHNOLOGIES, INC.
By its authorized signatory:

/s/ Weiguo Lang
--------------------
Signature of Authorized Signatory

Weiguo Lang
-----------
Name of Authorized Signatory

CEO/President/Director
----------------------
Position of Authorized Signatory

SIGNED, SEALED AND DELIVERED
BY JAMES D. BAKER
In the presence of:

---------------------
Signature of Witness

                                                           /s/ James D. Baker
                                                           ------------------
                                                            JAMES D. BAKER
--------------------------
Address of Witness

James D. Baker
Q-Net Technologies, Inc.                                            CONFIDENTIALExhibit 10.1

                                                                  EXECUTION COPY
                                                                  --------------

                            ASSET PURCHASE AGREEMENT

         THIS ASSET PURCHASE AGREEMENT ("Agreement") is made on this 6th day of
February, 2004, among Evenstar, Inc. (the "Seller"), Joel A. Butler, David L.
Butler and Patrick D. Butler (collectively, the "Shareholders"), and SLS
International, Inc., a Delaware corporation (the "Purchaser").

                                    RECITALS
                                    --------

A. Seller, through its Hyperion Amplification division, owns all rights to the
trade name "Hyperion Amplification" and all rights in various inventions
concerning digital amplification technologies, which are disclosed and described
in one U.S. Patent No. 6,563,377 B2 (the "Patent"), U.S. Patent Application
Serial No. 10/377,559 (the "Patent Application"), and expired U.S. Provisional
Patent Application No. 60/390,242 ("Provisional Patent Application"), all of
which are set forth on Schedule A attached hereto (collectively, the "Purchased
Proprietary Rights," as further defined below).

         B. Shareholders own 100% of the issued and outstanding shares of
capital stock of Seller.

         C. Seller desires to sell, transfer and assign to Purchaser, and
Purchaser agrees to purchase from Seller, all of the Purchased Proprietary
Rights, as well as the Additional Technology (as defined below), for an amount
in cash and other consideration, all as herein provided and on the terms and
conditions hereinafter set forth.

         NOW, THEREFORE, the parties hereto, intending to be legally bound
hereby, in consideration of the foregoing recitals and the mutual promises,
covenants and representations herein contained, agree as follows:

         1. PURCHASE AND SALE OF PURCHASED PROPRIETARY RIGHTS

         (A) PURCHASED PROPRIETARY RIGHTS. Upon the terms set forth herein,
Seller shall sell, assign, transfer, convey and deliver to Purchaser, and
Purchaser shall acquire from Seller, free and clear of all liens, mortgages,
pledges, security interests, claims, assessments, restrictions, encumbrances and
charges of any kind, all of the Purchased Proprietary Rights, which include the
Additional Technology (as defined below), on the Closing Date (as defined
below). The Purchased Proprietary Rights include, without limitation: (i) all
rights to the inventions disclosed and described in the Patent (including
improvements, continuations, continuations-in-part, extensions or divisions
thereof); (ii) all rights to the inventions disclosed and described in the
Patent Application (including improvements, continuations,
continuations-in-part, extensions or divisions thereof); (iii) all rights to the
inventions disclosed and described in the expired Provisional Patent
Application; (iv) all trade secrets, inventions, discoveries, know-how,
formulas, processes, concepts, proprietary product designs, proprietary
technical documentation or information, and source and object code for any
computer software programs related to these inventions, including those
described on Schedule A attached hereto or otherwise used in the Business
(collectively, the "Trade Secrets"); (iv) the trademark and trade name "Hyperion
Amplification," the logo associated therewith, and the goodwill associated
therewith (collectively, the "Trade Name"); (v) any copyrights or copyrightable
works related to the Purchased Proprietary Rights or otherwise used in the
Business (the "Copyrights") ; (vi) all income, royalties, damages and payments
hereafter that may be due and/or payable under and with respect to the Patent,
Patent Application, Trade Secrets, Trade Name and Copyrights, including, without
limitation, payments under all licenses entered into in connection therewith and
damages and payments for past or future infringements thereof, and the right to
sue for past, present and future infringements thereof.

         (B) ADDITIONAL TECHNOLOGY. The Purchased Proprietary Rights shall
include the technology of Seller (the "Additional Technology") set forth on
Schedule 1(b) attached hereto, which are disclosed to Seller on the date hereof
pursuant to a Confidentiality Agreement between the Purchaser and the Seller
dated the date hereof.

         (C) ASSIGNMENT OF CONTRACTS. Purchaser shall cooperate with Seller in
obtaining any third-party consents as may be required to transfer the Purchased
Proprietary Rights to Purchaser, including the provision of such information of
Purchaser as may be reasonably requested by such third parties in the context of
their review of requests for consent; provided that Purchaser shall not be
obligated to expend any sum or advance any costs, or commence any litigation or
other legal proceedings, in connection with such cooperation. Seller and
Shareholder(s) acknowledge and agree that any and all costs and fees charged by
such third parties in connection with such consents, whether charged prior to or
following the Closing Date, shall be the responsibility of the Seller and the
Shareholder(s).

<PAGE>

         2. PURCHASE PRICE AND PAYMENT.

         (A) PAYMENT TO SELLER. In consideration for the Purchased Proprietary
Rights, at the Closing, Purchaser shall deliver to Seller an aggregate amount of
cash and stock as set forth in (iii) and (iv) below ("Purchase Price"). The
Purchase Price shall be delivered to Seller through a combination of cash and
shares of the Purchaser's Common Stock (the "Common Stock"), as more
specifically set forth below.

         (i) Initial Deposit. Simultaneously with the execution of this
         Agreement, the Purchaser shall deposit with the Seller an amount equal
         to $30,000 in cash (the "Initial Deposit") by wire transfer of
         immediately available funds to an account previously identified by the
         Seller. The Initial Deposit is non-refundable except as set forth in
         Section 2(a)(ii) below.

         (ii) Second Deposit. If the Closing has not occurred on or prior to the
         Scheduled Closing Date (as defined below), then the Purchaser shall
         have the option, in Purchaser's sole discretion, to (x) terminate this
         Agreement, in which case the Seller shall be entitled to retain the
         Initial Deposit if but only if such failure to close is not the result
         of a failure of the Seller or the Shareholders to comply with the terms
         of this Agreement, which shall constitute liquidated damages for the
         Purchaser's failure to close the transactions contemplated hereby, and
         this Agreement shall thereby be terminated; or (y) extend the Scheduled
         Closing Date to April 20, 2004 and deposit with the Seller an
         additional amount equal to $30,000 in cash (the "Second Deposit") by
         wire transfer of immediately available funds to an account previously
         identified by the Seller. The Second Deposit is also non-refundable
         except as set forth in this Section 2(a) (ii). If Purchaser elects to
         terminate this Agreement pursuant to clause (x) and the failure to
         close prior to the Scheduled Closing Date is the result of a failure of
         the Seller or the Shareholders to comply with the terms of this
         Agreement, then Seller shall promptly return the Initial Deposit to the
         Purchaser. If the Closing has not occurred on or prior to April 20,
         2004, then Purchaser may terminate this Agreement, in which case the
         Seller shall be entitled to retain the Initial Deposit and the Second
         Deposit if but only if such failure to close is not the result of a
         failure of the Seller or the Shareholders to comply with the terms of
         this Agreement, which shall constitute liquidated damages for the
         Purchaser's failure to close the transactions contemplated hereby, and
         this Agreement shall thereby be terminated. If the Closing has not
         occurred on or prior to April 20, 2004 and the failure to close is the
         result of a failure of the Seller or the Shareholders to comply with
         the terms of this Agreement, then the Seller shall promptly return the
         Initial Deposit and the Second Deposit to the Purchaser.

         (iii) Cash Portion. At the Closing, Seller will receive an aggregate
         amount of cash equal to $300,000 less the Deposit and the Second
         Deposit (to the extent previously paid).

         (iv) Stock Issuance. At the Closing, Seller will receive 300,000 shares
         of Common Stock (the "Shares") which are deemed to have an aggregate
         value of $_______ (the "Aggregate Share Value"). The Shares will vest
         over time as follows, if but only if Joel Butler remains an employee of
         the Purchaser in good standing on each date specified below:

                  Date                                        Shares Vested
                  ----                                        -------------
                  Closing Date                                100,000
                  First Anniversary of Closing Date           200,000
                  Second Anniversary of Closing Date          300,000

         If Joel Butler is no longer an employee in good standing at any time
         prior to the second anniversary of the Closing Date, the Seller shall
         return the stock certificate to the Purchaser and the Purchaser shall
         cancel any shares that have not vested prior to the termination date of
         his employment and issue a new certificate reflecting only those shares
         that have vested (and have not been sold previously). Notwithstanding
         the foregoing, if Joel Butler's employment is terminated by the
         Purchaser without cause (as defined in his employment agreement with
         the Purchaser) prior to the second anniversary of the Closing Date, or
         if Joel Butler dies prior to such second anniversary, then all of the
         Shares shall immediately become fully vested, and the immediately
         preceding sentence shall be inapplicable. Also, the Seller agrees that
         it will sell no more than 5,000 vested Shares in any one trading day;
         provided that if the twenty-day average daily trading volume in the
         Purchaser's Shares equals or exceeds 500,000 shares, then the Seller
         will sell no more than 25,000 vested Shares in any one trading day (in
         each case subject to any restrictions of applicable law, including Rule
         144 of the U.S. Securities and Exchange Commission). The certificate(s)
         issued to the Seller evidencing the Shares shall contain a legend
         giving notice of the restrictions on such Shares provided in this
         Section 2(a).

                                      -2-
<PAGE>

         (B) Following the Closing, Purchaser will prepare (and Seller may
review) Form 8594 and any other notice or filing required pursuant to Section
1060 of the Internal Revenue Code of 1986, as amended. The parties hereto agree
to execute and file the Form 8594 prepared by Purchaser and such other forms,
notices and filings as required by applicable laws.

         (C) Seller agrees to pay all sales or similar taxes required to be paid
by reason of the sale by Seller of the Purchased Proprietary Rights to Purchaser
hereunder.

         3. LIABILITIES.

         Purchaser will assume no liabilities of Seller. Seller and Shareholders
agree to timely pay, satisfy or discharge and indemnify and hold harmless
Purchaser from all liabilities of the Seller.

         4. COVENANT NOT TO COMPETE.

         (A) To assure that Purchaser will realize the value and goodwill
inherent in the Purchased Proprietary Rights, Shareholders agree that they shall
not (i) directly or indirectly engage in (as an owner, partner, employee, agent,
consultant or otherwise), for a period of five (5) years following the Closing
Date, any business that designs, manufactures, distributes or sells commercial,
professional or residential loudspeakers, amplifiers or other stereo or sound
equipment (the "Business") in the United States (the "Territory"); (ii) directly
or indirectly, for a period of five (5) years following the Closing Date,
request or advise any individual or company which is a customer of Seller at the
Closing Date to withdraw, curtail or cancel any such customer's relationship
with Purchaser; or (iii) solicit or cause, directly or indirectly, to be
solicited, nor attempt to induce, for a period of five (5) years after the
Closing Date, any person employed by Seller at or at any time within 180 days
prior to the Closing Date, unless such person was either not offered employment
by Purchaser immediately following the Closing or was terminated thereafter, (A)
to refuse an offer of employment from Purchaser; (B) if such an offer is
accepted, to terminate his or her employment with Purchaser; or (C) to work,
directly or indirectly, with or for Seller.

         (B) Shareholders agree and acknowledge that the restrictions contained
in Section 4(a) are reasonable in scope and duration and are necessary to
protect Purchaser after the Closing Date. If, however, any provision of Section
4(a), as applied to any party or to any circumstances, is adjudged by a court to
be invalid or unenforceable, the same will in no way affect any other provision
of Section 4(a) or any other part of this Agreement, the application of such
provision in any other circumstances or the validity or enforceability of this
Agreement. If any such provision, or any part thereof, is held to be
unenforceable because of the duration of such provision or the area covered
thereby, the parties agree that the court making such determination will have
the power to reduce the duration and/or area of such provision, and/or to delete
specific words or phrases, and in its reduced form such provision will then be
enforceable and will be enforced. Upon breach of any provision of Section 4(a),
Purchaser will be entitled to injunctive relief (without posting bond or other
security), since the remedy at law would be inadequate and insufficient. In
addition, Purchaser will be entitled to such damages as it can show it has
sustained by reason of such breach.

         5. CLOSING.

         (A) TIME AND PLACE OF CLOSING. The closing of the transactions
contemplated by this Agreement (the "Closing") shall take place at the offices
of Freeborn & Peters, 311 S. Wacker Drive, Suite 3000, Chicago, Illinois, on
February 20, 2004 (the "Scheduled Closing Date"), as potentially extended
pursuant to Section 2(a) above, or by mail or facsimile transmission of the
applicable documents, certificates and instruments required to consummate the
transactions contemplated by this Agreement, or at such other place and time as
agreed upon by the parties. The date on which the Closing occurs is referred to
herein as the "Closing Date."

         (B) CLOSING TRANSACTIONS. Subject to the conditions set forth in this
Agreement, the parties shall consummate the following transactions (the "Closing
Transactions") on the Closing Date:

         (i) Seller shall deliver to Purchaser a Bill of Sale for the Purchased
         Proprietary Rights to be sold by Seller hereunder;

         (ii) Seller shall deliver to Purchaser Assignments of Patents for each
         patent and patent application to be sold by Seller hereunder;

         (iii) Purchaser shall deliver the Purchase Price to Seller (by wire
         transfer of immediately available funds to an account designated by
         Seller) and shall instruct its transfer agent to issue and deliver to
         Shareholder(s) the certificates representing the Shares; and

                                      -3-
<PAGE>

         (iv) Purchaser and Joel Butler shall enter into a two-year employment
         agreement with an annual salary of $90,000, all benefits generally
         available to the Purchaser's other employees (the "Benefits"), and
         reimbursement of expenses reasonably incurred in relocating to
         Springfield, Missouri (subject to the Purchaser's advance approval of
         such expenses), and otherwise in form and substance reasonably
         satisfactory to Purchaser and Joel Butler. The employment agreement
         shall contain a non-competition and non-solicitation covenant during
         the employment period and for two years following termination of
         employment (if terminated by the Purchaser without cause, then one year
         following termination) and shall contain assignments to the Purchaser
         of all technology developed by Joel Butler during the employment
         period. Pursuant to the employment agreement, on the first day of
         employment, Joel Butler will receive an Option to purchase 100,000
         shares of the Purchaser's common stock ("Hiring Option") at a price
         equal to the Market Value (as defined below) of the Purchaser's common
         stock on the date of this Agreement. The Closing Option shall become
         exercisable ninety days after the Closing Date, shall expire on the
         fifth anniversary of the Closing Date, and shall otherwise be in a form
         reasonably acceptable to the Purchaser and Joel Butler. Further, on
         each anniversary of the employee's first day of employment until the
         termination of employee's employment, the Purchaser shall issue to Joel
         Butler options to acquire the Purchaser's common stock ("Annual Bonus
         Options") at an exercise price per share equal to the Market Value of
         the Purchaser's common stock on the applicable anniversary date. Each
         Annual Bonus Option shall have a term of five years. The number of
         shares issuable pursuant to an Annual Bonus Option shall equal the net
         profit (as reasonably determined by the Purchaser in accordance with
         generally accepted accounting principles and other reasonable
         assumptions and estimates necessary to make the determination), in the
         year ending on such anniversary date, of the Purchaser's products that
         incorporate the Purchased Proprietary Rights multiplied by 5% and
         divided by the option exercise price per share. For example, if the net
         profits in a year ending on the first anniversary date equal $2 million
         and the Market Value on the anniversary date is $5, the exercise price
         per share shall be $5 (i.e., the Market Value) and the number of shares
         issuable pursuant to the first Annual Bonus Option shall be 20,000
         shares of common stock (2 million x 5% / $5). If the employment
         agreement is terminated by the Purchaser prior to the first anniversary
         of the Closing Date, and the termination is without "cause" (as such
         term will be defined in the employment agreement), then the Purchaser
         shall continue to pay Joel Butler the annual salary and the Benefits
         through the first anniversary of the Closing Date, as well as
         reimbursing Joel Butler for any relocation expenses incurred by Joel
         Butler prior to the termination of employment and granting the Hiring
         Option. If the employment agreement is terminated for cause by the
         Purchaser prior to the first anniversary of the Closing Date, or if it
         is terminated by Joel Butler prior to the first anniversary of the
         Closing Date, then all compensation shall immediately terminate and
         Joel Butler shall refund to the Purchaser all moving expenses
         previously reimbursed or paid directly by the Purchaser.

         "Market Value" of a share of the Purchaser's common stock shall be the
         average closing price of the common stock on all securities exchanges
         on which the common stock may at the time be listed, or, if there has
         been no sales on any exchange on any day, the average of the highest
         bid and lowest asked prices on all such exchanges at the end of such
         day, or, if on any day such security is not so listed, the average of
         the representative bid and asked prices quoted in the NASDAQ System as
         of 4:00 P.M., New York time, or, if on the day such security is not
         quoted in the NASDAQ System, the average of the highest bid and lowest
         asked prices on such day in the domestic over-the-counter market as
         reported by the National Quotation Bureau, Incorporated, or any similar
         successor organization, in each such case averaged over a period of 10
         trading days immediately preceding the day as of which "Market Value"
         is being determined. If at any time the common stock is not listed on
         any securities exchange or quoted in the NASDAQ System or the
         over-the-counter market, "Fair Market Value" shall be determined in the
         reasonable, good faith discretion of the Purchaser's board of directors
         (taking into account all factors relevant to the value of the common
         stock, including, without limitation, the most recent price at which
         the common stock was sold to a third party).

         (C) SELLER'S CLOSING DELIVERIES. Subject to and conditioned upon the
Closing, on or prior to the Closing Date, Seller shall have delivered to
Purchaser all of the following:

         (i) a certificate of the Secretary of State or such other appropriate
         governmental body of the State in which Seller is organized providing
         that Seller is in good standing;

         (ii) copies of all third-party (including landlords) and governmental
         consents, approvals, filings, releases and terminations required in
         connection with the consummation of the transactions contemplated
         herein;

         (iii) an opinion, dated the Closing Date, of counsel to Seller, in form
         and substance reasonably satisfactory to Purchaser; and

         (iv) such other documents or instruments as Purchaser may reasonably
         request to effect the transactions contemplated hereby.

                                      -4-
<PAGE>

         (D) PURCHASER'S CLOSING DELIVERIES. Subject to and conditioned upon the
Closing, on or prior to the Closing Date, the Purchaser shall have delivered to
Seller all of the following:

         (i) a certificate of the Secretary of State or such other appropriate
         governmental body of the State in which Purchaser is organized,
         providing that Purchaser is in good standing; and

         (ii) such other documents or instruments as Seller may reasonably
         request to effect the transactions contemplated hereby.

         6. REPRESENTATIONS AND WARRANTIES. Seller and Shareholders each make
the following representations and warranties to Purchaser, upon which Purchaser
has relied:

         (A) ORGANIZATION, POWER AND AUTHORITY; SUBSIDIARIES. Seller is a
corporation duly organized, validly existing and in good standing under the laws
of the State of Kansas and has all requisite corporate power and authority to
own or lease its properties and to carry on its business as it is now being
conducted. Seller and Shareholders have the power and authority and capacity to
enter into this Agreement, and upon execution of this Agreement by Seller and
Shareholders same shall be binding upon and enforceable against Seller and
Shareholders according to the terms hereof.

         (B) AUTHORIZATION; EXECUTION AND DELIVERY; NON-CONTRAVENTION. The
execution, delivery and performance of this Agreement and the consummation of
the transactions contemplated hereby have been duly authorized by all necessary
corporate action of the Seller. This Agreement has been duly executed and
delivered by the Seller and is a valid and binding obligation of the Seller,
enforceable in accordance with its terms. Neither the execution and delivery of
this Agreement nor the consummation of the transactions contemplated hereby will
(x) contravene any provision of the certificate of incorporation or by-laws of
Seller; (y) violate or conflict with any federal, state or local law, statute,
ordinance, rule, regulation or any decree, writ, injunction, judgment or order
of any court or administrative or other governmental body or of any arbitration
award which is either applicable to, binding upon or enforceable against Seller
or any of the Shareholders; or (z) conflict with, result in any breach of or
default (or an event which would, with the passage of time or the giving of
notice or both, constitute a default) under any material contract, agreement,
lease, license, indenture, trust or other instrument which is either binding
upon or enforceable against the Seller or any of the Shareholders.

         (C) TAXES. Seller has filed all federal, state, county and local tax
returns due prior to the date hereof and all taxes of every nature (including
all sales and use taxes, income taxes and real estate taxes); and all penalties
and interest thereon, due for or attributable to periods ending on or prior to
the Closing Date, have been paid timely and in full.

         (D) GOOD TITLE. Seller has good and marketable title to the Purchased
Proprietary Rights, and Seller shall convey same to Purchaser, free and clear of
any mortgage, security interest, pledge, lien, conditional sales or other
agreement, lease, encumbrance or claim of any nature. Seller does not know of
any defects or deficiencies in the Purchased Proprietary Rights.

         (E) RELIANCE ON STATEMENTS. No representation contained herein or
written statement made or furnished by any officer of Seller to Purchaser in
connection with this Agreement contains any untrue statement of a material fact
or omits any material fact necessary to make such representation or statement
not misleading.

         (F) LITIGATION. There are no actions, suits, arbitrations, proceedings
or investigations pending, or to the knowledge of Seller threatened, against or
affecting Seller, Seller's operations, the Purchased Proprietary Rights, or
Seller's use of the Purchased Proprietary Rights.

         (G) COMPLIANCE WITH LAWS. Seller is not in violation of any order,
writ, notice, injunction or decree of any court, board, or agency. Seller has
complied with, and is in present compliance with, all laws, regulations, rules
and orders applicable to Seller's business and/or to any or all of the Purchased
Proprietary Rights.

         (H) SOLE OWNER. Seller is the sole owner of all right, title and
interest in and to the Purchased Proprietary Rights. There are not currently
outstanding any options or other rights to purchase or license any interest in
the Purchased Proprietary Rights.

         (I) LICENSES AND PERMITS. Seller possesses all licenses and required
governmental or official approvals, permits or authorizations (collectively, the
"Permits") for the business and operations of Seller. All such Permits are valid
and in full force and effect, Seller is in substantial compliance with their
requirements, and no proceeding is pending or, to the best of Seller's or
Shareholders' knowledge, threatened to revoke or amend any of them. Schedule
6(i) contains a complete list of all such Permits. Except as indicated on
Schedule 6(i), none of such Permits will be impaired or in any way affected by
the execution and delivery of this Agreement or the consummation of the
transactions contemplated herein.

                                      -5-
<PAGE>

         (J) PROPRIETARY RIGHTS. (i) Seller has received no notice of any claim
by any third party asserting the invalidity, abuse, misuse, or unenforceability
of any of Seller's rights in, the use of, or the validity of the Purchased
Proprietary Rights, and to Seller's knowledge there are no grounds for the same.
The Purchased Proprietary Rights do not infringe, conflict with, dilute or
misappropriate any proprietary rights of others, and the Seller has never
received a notice claiming any such infringement, conflict, dilution or
misappropriation. The conduct of Seller's business has not infringed any
proprietary rights of others. To the knowledge of the Seller, no other person or
entity is infringing, diluting or misappropriating any of the Purchased
Proprietary Rights.

         (ii) Any employee, agent, consultant, or contractor who has contributed
         to or participated in the creation or development of any portion of the
         Purchased Proprietary Rights on behalf of the Seller either (i) is a
         party to a "work-for-hire" agreement under which the Seller is deemed
         to be the original owner / author of all property rights therein, or
         (ii) has executed an assignment to the Seller of all right, title and
         interest therein.

         (iii) The Purchased Proprietary Rights are valid and enforceable, and
         each portion of the Purchased Proprietary Rights that is registered
         with or issued by a governmental or regulatory authority has been duly
         registered with, filed in or issued by the appropriate governmental or
         regulatory authority and each such registration or issuance is valid
         and remains in full force and effect, and all applications therefor
         that are pending are in good standing and without challenge of any
         kind. The Seller has taken all actions reasonably necessary to protect
         each item of the Purchased Proprietary Rights, and has not taken any
         action that would impair or otherwise adversely affect its rights in
         the Purchased Proprietary Rights.

         (iv) The Seller has the sole and exclusive right to bring actions for
         infringement or unauthorized use of the Purchased Proprietary Rights,
         and to the knowledge of Seller, there is no basis for any such action.

         7. PRE-CLOSING COVENANTS OF PURCHASER.

         (A) CONDUCT OF BUSINESS. During the period from the date of this
Agreement until the earlier of the Closing Date or the date this Agreement is
terminated, (i) the Seller shall conduct its operations according to its
ordinary and usual course of business, (ii) except as is required by applicable
law, as may be approved by the Purchaser (which approval shall not be
unreasonably withheld, delayed or conditioned) or as is otherwise contemplated
by this Agreement, the Seller and the Shareholders shall refrain from taking any
of the following actions:

         (i) failing to take the Business's customary measures, in the ordinary
         course of business consistent with past practice, to prevent the
         Business from suffering any theft, damage, destruction or casualty to
         the Purchased Proprietary Rights, whether or not covered by

         (ii) permitting any of the Purchased Proprietary Rights to be subjected
         to any lien;

         (iii) selling, leasing, assigning, licensing, transferring or otherwise
         disposing of any portion of the Purchased Proprietary Rights;

         (iv) issuing, selling or transferring any interest in the Seller or any
         rights to acquire any interest in the Seller, other than pursuant to
         this Agreement;

         (v) disclosing any confidential information;

         (vi) failing to maintain all reasonably necessary Permits or fail to
         make all reasonably necessary registrations or filings with or notices
         to any governmental or regulatory authority for the lawful ownership of
         the Purchased Proprietary Rights and the operation of its businesses as
         presently conducted;

         (vii) committing to do any of the foregoing.

                                      -6-
<PAGE>

         (B) REVIEW OF THE BUSINESS; CONFIDENTIALITY. The Seller shall permit
the Purchaser and its representatives to have, after the date of execution of
this Agreement, reasonable access during regular business hours to the premises
and to the books and records of the Business, and the Seller shall cause the
officers, employees and other representatives of each of the Seller to furnish
the Purchaser with such financial and operating data and other information with
respect to the Business as the Purchaser shall from time to time reasonably
request.

         (C) COMMERCIALLY REASONABLE EFFORTS. Subject to the terms and
conditions contained herein, the Seller and the Purchaser shall cooperate and
use their respective commercially reasonable efforts to take, or cause to be
taken, all appropriate action, and to make, or cause to be made, as soon as
practicable after the date of this Agreement, all filings necessary, proper or
advisable under applicable laws, in each case to consummate and make effective
the transactions contemplated by this Agreement in the most expeditious manner
practicable (including their respective commercially reasonable efforts to
obtain, prior to the Closing Date, all permits, consents, approvals,
authorizations, qualifications and orders as are necessary for consummation of
the transactions contemplated by this Agreement, to remove any injunctions or
other impediments or delays (legal or otherwise) and to fulfill the conditions
to consummation of the transactions contemplated hereby set forth in Section 9
of this Agreement).

         8. POST-CLOSING COVENANTS OF PURCHASER AND SELLER.

         (A) From and after the Closing, Purchaser shall keep and preserve all
books, records, information and data transferred to Purchaser hereunder for a
period of not less than six (6) years after the Closing and provide Seller with
reasonable access thereto to the extent any or all of same is needed by Seller
for tax, accounting or litigation purposes.

         (B) Seller and Shareholders agree that after the Closing they will not
use the trade name "Hyperion" (either alone or together with other names or
words) or license other people to use such names in the Business.

         (C) Until the second anniversary of the Closing Date, the Purchaser
shall not sell any of the Purchased Proprietary Rights until five business day
after the Purchaser delivers an offer notice (the "Offer Notice") to Joel A.
Butler setting forth the proposed Purchased Proprietary Rights to be sold and
the proposed price thereof. Joel Butler may elect (on behalf of himself or any
of the Shareholders) to purchase all of the Purchased Proprietary Rights
specified in the Offer Notice at the price specified therein by delivering
written notice of such election within five business days after its receipt of
the Offer Notice. If any of the Shareholders have elected to purchase the
Purchased Proprietary Rights from the Purchaser, the sale of such Purchased
Proprietary Rights shall be consummated as soon as practical after the delivery
of the election notice to the Purchaser, but in any event within ten business
days after the Purchaser's receipt of the election notice. If the Shareholders
do not elect to purchase all of the Purchased Proprietary Rights being offered,
the Purchaser may, at any time within 60 business days after the expiration of
the fifth business day following delivery of the Offer Notice, sell such
Purchased Proprietary Rights to one or more third parties at an aggregate price
no less than the price specified in the Offer Notice and on other terms no more
favorable, in the aggregate, to the transferees thereof than set forth in the
Offer Notice. Any Purchased Proprietary Rights not sold within such period shall
be reoffered pursuant to this paragraph 8(c) prior to any subsequent sale.

         9. CONDITIONS TO CLOSING

         (A) CONDITIONS TO THE PURCHASER'S OBLIGATIONS. The Purchaser may elect
not to close the transactions in its sole discretion for any reason or for no
reason; provided that it shall forfeit the Initial Deposit and the Second
Deposit (to the extent previously paid) if it exercises its rights not to close
pursuant to this Section 9(a), if but only if such failure to close is not the
result of a failure of the Seller or the Shareholders to comply with the terms
of this Agreement, and the forfeiture of the Initial Deposit and the Second
Deposit (to the extent previously paid) shall constitute liquidated damages for
the Purchaser's failure to close.

         (B) CONDITIONS TO THE SELLER'S AND SHAREHOLDERS' OBLIGATIONS. The sale
of the Purchased Proprietary Rights by the Seller on the Closing Date is
conditioned upon satisfaction or waiver by the Seller, at or prior to the
Closing, of the following conditions:

         (i) All of the agreements and covenants of the Purchaser to be
         performed on or prior to the Closing Date pursuant to this Agreement
         shall have been duly performed in all material respects.

         (ii) No preliminary or permanent injunction, decree or other order
         shall have been issued or be the subject of deliberation by any court
         or by any governmental or regulatory authority which prohibits the
         consummation of the transactions contemplated by this Agreement and
         which is in effect at the Closing.

         (iii) No law or order of any kind shall have been enacted, entered,
         promulgated or enforced by any court or governmental or regulatory
         authority which prohibits the consummation of the transactions
         contemplated by this Agreement or has the effect of making them
         illegal.

                                      -7-
<PAGE>

         10. INDEMNIFICATION.

         (A) Seller and Shareholders (the "Selling Parties") shall indemnify and
hold Purchaser harmless from and against all damages, losses, liabilities, costs
and expenses, including without limitation reasonable attorneys' fees and
litigation expenses and costs, arising out of or resulting from (i) any
representation or warranty made by the Selling Parties in this Agreement being
untrue or incorrect; (ii) any material failure by the Selling Parties to timely
observe or perform all covenants and agreements set forth herein; (iii) any
brokers' fees incurred by the Selling Parties as described in Section 12(f); or
(iv) any liabilities of the Seller. All indemnification owing to Purchaser
hereunder shall be due and payable upon demand and, in Purchaser's discretion,
may also be recovered by setoff against amounts payable to the Selling Parties
hereunder.

         (B) Purchaser shall indemnify the Selling Parties, and hold them
harmless from and against, all damages, losses, liabilities, costs and expenses,
including without limitation reasonable attorneys' fees and litigation expenses
and costs arising out of or resulting from any material failure of Purchaser to
observe or perform its covenants and agreements set forth in this Agreement. All
indemnification owing to the Selling Parties shall be due and payable upon
demand.

         (C) Each of the representations and warranties made by the Selling
Parties in this Agreement, shall survive after the Closing Date, notwithstanding
any investigation at any time made by or on behalf of any party.

         (D) Purchaser shall provide prompt notice ("Claim Notice") of any claim
under Section 10(a) to Seller describing the claim, the amount thereof (if known
and quantifiable), and the basis thereof; provided, however, that failure to
give prompt notice shall bar recovery of indemnification only if and to the
extent the failure to give such timely notice resulted in material prejudice to
the ability of Seller to defend and respond to such claim.

         (F) Purchaser may at any time set off any amount for which the Selling
Parties are responsible under Section 10 against any payments or other amounts
owed from Purchaser to the Selling Parties pursuant to the provisions hereof or
otherwise owing to any of the Selling Parties. The amount to be set off (the
"Set Off Amount") shall be (x) the full amount of the claim made in the Claim
Notice if the Selling Parties either agreed to such amount or failed to respond
to such Claim Notice in writing within ten (10) business days from the date of
receipt by the Selling Parties of such Claim Notice (the "Contest Period") or
(y) if such claim is contested by the Selling Parties prior to the end of the
Contest Period, the amount of the claim that is either agreed to by the parties
or the amount of any final, non-appealable judgment on such claim, in each case
together with interest thereon at a rate of 7% per annum from the date on which
the Set Off Amount is determined through the date of payment.

         11. ACQUISITION OF SHARES.

         (A) Seller represents that the Shares to be received pursuant to
Section 2(a) will be delivered directly to Shareholders at the Closing; provided
that the Shares shall be deemed to have been delivered initially to Seller and
distributed by Seller to the Shareholders.

         (B) Each Shareholder acknowledges (x) the Shares to be delivered
pursuant to this Agreement will be "restricted securities" for purposes of the
Federal securities laws and thus will be transferable only pursuant to (i)
public offerings registered under the Securities Act of 1933, as amended (the
"Securities Act"), (ii) Rule 144 or Rule 144A of the Securities and Exchange
Commission (or any similar rule or rules then in force) if such rule is
available and (iii) subject to the conditions specified in Section 11(c) below,
any other legally available means of transfer, and (y) a legend will be placed
on the certificates for the Shares issued hereunder in accordance with Section
11(e) below.

         (C) In connection with the transfer of any Shares (other than a
transfer described in Section 11(b)(i) or (ii) above), the holder thereof shall
deliver written notice to Purchaser describing in reasonable detail the transfer
or proposed transfer, together with an opinion of counsel which (to Purchaser's
reasonable satisfaction) is knowledgeable in securities law matters to the
effect that such transfer of Shares may be effected without registration of such
Shares under the Securities Act.

         (D) Each Shareholder hereby represents that Shareholder (i) is
acquiring the Shares acquired pursuant hereto for Shareholder's own account with
the present intention of holding such securities for purposes of investment, and
that Shareholder has no intention of selling such securities in a public
distribution in violation of the federal securities laws or any applicable state

                                      -8-
<PAGE>

securities laws; provided that nothing contained herein shall prevent each
Shareholder and subsequent holders of Shares from transferring such securities
in compliance with the provisions of this Section 11; (ii) is an "accredited
investor" as that term is defined in Rule 501 of Regulation D under the
Securities Act or has designated a "purchaser representative," (iii) either
alone or together with Shareholder's purchaser representative, (x) is a
sophisticated investor, has had prior experience with investments of a similar
nature, and (y) has knowledge and experience in financial and business matters
such that Shareholder is capable of evaluating the merits and risks of an
investment in the Shares, and (iv) has received all material documents, records
and books pertaining to the Purchaser and the Shares which Shareholder has
requested (including but not limited to filings by Purchaser with the Securities
and Exchange Commission under the Securities Exchange Act of 1934, as amended),
and has been given an opportunity to make any further inquiries of the Purchaser
and its representatives that Shareholder desires to make and that each such
inquiry has been answered, or requested information provided, to Shareholder's
satisfaction. Each Shareholder understands that the Purchaser has a limited
operating history and that an investment in the Shares involves a high degree of
risk.

         (E) Each certificate or instrument representing Shares shall be
imprinted with a legend (in addition to any legend pursuant to Section 2(a)
above) in substantially the following form:

                  "THE SHARES OF COMMON STOCK REPRESENTED BY THIS CERTIFICATE
                  HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
                  AMENDED (THE "1933 ACT"), OR ANY STATE SECURITIES ACT, AND MAY
                  NOT BE SOLD, PLEDGED, TRANSFERRED OR DISPOSED OF UNLESS THEY
                  ARE REGISTERED UNDER THE 1933 ACT AND ANY APPLICABLE STATE
                  SECURITIES ACT OR AN EXEMPTION FROM REGISTRATION IS
                  AVAILABLE."

         12. MISCELLANEOUS PROVISIONS.

         (A) NOTICES. All notices, requests, demands or other communications
which may be or are required or permitted to be served or given hereunder (in
this Section collectively called "Notices") shall be in writing and shall be
hand delivered, sent by registered or certified mail, return receipt requested,
postage prepaid, or by a nationally recognized overnight delivery service, or
via facsimile, to the parties hereto at the address or facsimile number listed
below (provided that, for a facsimile, a copy is also sent promptly by U.S.
mail, certified mail or overnight delivery service):

         If to the Seller or the Shareholders:
         ------------------------------------
         c/o Joel Butler

         ------------------------

         ------------------------

         ------------------------

         If to the Purchaser:
         -------------------
         SLS International, Inc.
         3119 South Scenic
         Springfield, MO  65807
         Attn:  President
         Fax:  (417)883-2723

         with a copy to:
         Jeff Mattson
         Freeborn & Peters, LLP
         311 S. Wacker Dr.
         Suite 3000
         Chicago, IL  60606
         Fax:  (312)360-6597

Either party may, by Notice given as aforesaid, change its address for all
subsequent Notices. Notices shall be deemed given on the date delivered.

         (B) NO MODIFICATION. This Agreement may not be modified, altered or
rescinded, or any rights hereunder waived, except by written agreement signed by
the parties hereto, or signed by the party charged with the waiver in the case
of a waiver.

                                      -9-
<PAGE>

         (C) BINDING AGREEMENT. This Agreement shall be binding upon and inure
to the benefit of the parties hereto and the respective heirs, beneficiaries,
personal representatives, successors and assigns. There are no third-party
beneficiaries to this Agreement.

         (D) ASSIGNMENT. Neither this Agreement nor any of the rights, interests
or obligations hereunder shall be assigned by any of the parties hereto without
the prior consent of the other parties, except that after the Closing, the
Purchaser may assign its rights (but if so must also delegate its duties) to any
of its affiliates or to any person or entity who acquires all or substantially
all of the assets of the Purchaser.

         (E) BROKER FEES. Seller and the Shareholders shall be responsible for
any commissions, fees or other amounts payable to a broker, finder, agent or
other person or entity engaged by Seller or the Shareholders which are due and
payable as a result of this Agreement and/or the transactions contemplated
hereby.

         (F) SURVIVAL. Time is of the essence for all provisions hereof. All
representations, warranties and covenants shall survive Closing hereunder.

         (G) FURTHER ASSURANCES. At any time and from time to time after the
Closing, upon reasonable request of Purchaser, Seller and Shareholders shall do,
execute, acknowledge and deliver such further acts, assignments, transfers,
conveyances and assurances as may be reasonably required for the more complete
consummation of the transactions contemplated herein.

         (H) GOVERNING LAW. This Agreement shall be governed by and construed
and enforced in accordance with the laws of the State of Missouri, without
regard to conflicts of laws principles that would cause any other state's laws
to apply.

         (I) HEADINGS AND CAPTIONS. The captions set forth in this Agreement are
solely for the convenience of the parties hereto and shall not control or affect
the meaning or construction of this Agreement.

         (J) SEVERABILITY. If any term or provision of this Agreement is found
by a court of competent jurisdiction to be unenforceable, in whole or in part,
the rest and remainder of such provision and this Agreement shall be and remain
enforceable to the fullest extent permitted by law.

         (K) CONFIDENTIALITY; PUBLICITY. Except as may be required by law, rule
or regulation or as otherwise permitted or expressly contemplated herein,
neither the Selling Parties nor their agents or representatives shall disclose
to any third party the subject matter or terms of, or negotiations relating to,
this Agreement without the prior consent of the Purchaser. In addition, no press
release or other public announcement related to this Agreement or the
transactions contemplated hereby will be issued by any of such persons hereto
without the prior approval of Purchaser.

         (L) COUNTERPARTS. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original, but all of which taken
together shall constitute one and the same instrument. Confirmation of execution
by electronic transmission of a facsimile signature page shall be binding upon
any party so confirming.

         (M) ENTIRE AGREEMENT. This Agreement, along with the Schedules and
Exhibits hereto, sets forth all of the terms, agreements and representations
among the parties hereto with respect to the subject matter hereof, and
supersedes all prior and contemporaneous agreements and understandings.

                       [SIGNATURES ON THE FOLLOWING PAGE]

                                      -10-
<PAGE>

         IN WITNESS WHEREOF, the parties hereto, intending to be bound hereby,
have caused this Standard Asset Purchase Agreement to be executed the day and
year first above written.

                                              PURCHASER:

                                              SLS INTERNATIONAL, INC.

                                              By:
                                                  -----------------------------
                                              Its:
                                                   ----------------------------

SELLER:

EVENSTAR, INC.

By:
    ----------------------------------------
Its:
     ---------------------------------------

SHAREHOLDERS:

-----------------------------
JOEL A. BUTLER

-----------------------------
DAVID L. BUTLER

-----------------------------
PATRICK D. BUTLER

                                      -11-
<PAGE>

                                LIST OF SCHEDULES
                                -----------------

Schedule A        -        Purchased Proprietary Rights

Schedule 1(b)     -        Additional Technology
Schedule 6(i)     -        Permits

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