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<SEC-DOCUMENT>0001019687-07-003799.txt : 20071108
<SEC-HEADER>0001019687-07-003799.hdr.sgml : 20071108
<ACCEPTANCE-DATETIME>20071107173836
ACCESSION NUMBER:		0001019687-07-003799
CONFORMED SUBMISSION TYPE:	DEF 14A
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20071123
FILED AS OF DATE:		20071108
DATE AS OF CHANGE:		20071107
EFFECTIVENESS DATE:		20071108

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			FRANKLIN WIRELESS CORP
		CENTRAL INDEX KEY:			0000722572
		STANDARD INDUSTRIAL CLASSIFICATION:	TELEPHONE & TELEGRAPH APPARATUS [3661]
		IRS NUMBER:				953733534
		STATE OF INCORPORATION:			CA
		FISCAL YEAR END:			0630

	FILING VALUES:
		FORM TYPE:		DEF 14A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-14891
		FILM NUMBER:		071222677

	BUSINESS ADDRESS:	
		STREET 1:		9853 PACIFIC HEIGHTS BLVD #N
		CITY:			SAN DIEGO
		STATE:			CA
		ZIP:			92121
		BUSINESS PHONE:		858-623-0000

	MAIL ADDRESS:	
		STREET 1:		9853 PACIFIC HEIGHTS BLVD #N
		CITY:			SAN DIEGO
		STATE:			CA
		ZIP:			92121

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	FRANKLIN TELECOMMUNICATIONS CORP
		DATE OF NAME CHANGE:	19920703

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	ABM COMPUTER SYSTEMS
		DATE OF NAME CHANGE:	19870317

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	AUTOMATED BUSINESS MACHINES INC
		DATE OF NAME CHANGE:	19830802
</SEC-HEADER>
<DOCUMENT>
<TYPE>DEF 14A
<SEQUENCE>1
<FILENAME>franklin_def14a-112307.htm
<DESCRIPTION>FRANKLIN WIRELESS CORP.
<TEXT>
<html>

  <head>
    <title>franklin_def14a-112307.htm</title>
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      <hr style="MARGIN-TOP: -10px; COLOR: #000000" noshade size="1">
    </div>
    <div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">SCHEDULE
        14A</font></div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">INFORMATION
      REQUIRED IN PROXY STATEMENT</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">SCHEDULE
      14A</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Proxy
      Statement Pursuant to Section 14(a) </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">of
      the
      Securities </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Exchange
      Act of 1934</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Filed
      by
      the Registrant [X]</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Filed
      by
      a Party other than the Registrant [&#160; ]</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Check
      the
      appropriate box:</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">[&#160;&#160;
      ]&#160;&#160;Preliminary proxy statement</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">[&#160;
      &#160;]&#160;&#160;Confidential, for use of the Commission Only</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">&#160;(as
      permitted by Rule 14a-6(e)(2))</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">[X]&#160;&#160;Definitive
      Proxy Statement</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">[&#160;
      &#160;]&#160;&#160;Definitive Additional Materials</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">[&#160;
      &#160;]&#160;&#160;Soliciting Material under RULE 14A-12</font></div>
    <div><br></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 14pt; FONT-FAMILY: Times New Roman;">Franklin
      Wireless Corp.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">
      <hr style="COLOR: black" align="center" noshade size="1" width="100%">
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">(Name
      of the Registrant as Specified in Its Charter)</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">
      <hr style="COLOR: black" align="center" noshade size="1" width="100%">&#160;<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">(Name
      of
      Person(s) Filing Proxy Statement, if other than the Registrant)</font><br></div>
    <div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Payment
        of filing fee (Check the appropriate box):</font></div>
      <div><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">[X]
        No
        fee required.</font><br></div>
      <div><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">[&#160;
]
        Fee computed on table below per Exchange Act Rules 14a-6(i)(iv) and
        0-11</font></div>
      <div><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">(1)
        Title
        of each class of securities to which transaction applies:</font></div>
      <div><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">(2)
        Aggregate number of securities to which transactions applies:</font></div>
      <div><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">(3)
        Per
        unit price of other underlying value of transaction computed</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">pursuant
        to Exchange Act Rule 0-11 (set forth the amount on which</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">the
        filing fee is calculated and state how it was determined):</font></div>
      <div><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">(4)
        Proposed maximum aggregate value of transaction:</font></div>
      <div><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">(5)
        Total
        fee paid:</font></div>
      <div><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">[&#160;
]
        Fee paid previously with preliminary materials.</font></div>
      <div><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">[&#160;
]
        Check box if any part of the fee is offset as provided by Exchange Act Rule
        </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">0-11(a)(2)
        and identify the filing for which the offsetting fee was paid</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">previously.
        Identify the previous filing by registration statement number, or </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">the
        form
        or schedule and the date of its filing.</font></div>
      <div><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">(1)
        Amount Previously Paid:</font></div>
      <div><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">(2)
        Form,
        Schedule or Registration Statement No.:</font></div>
      <div><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">(3)
        Filing Party:</font></div>
      <div><br></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">(4)
        Date
        Filed:</font><br>
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            </div>
          </div>
          <div id="HDR">
            <div id="GLHDR" style="WIDTH: 100%" align="right">
            </div>
          </div>
        </div><br></div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>FRANKLIN
      WIRELESS CORP.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>9823
      PACIFIC HEIGHTS BLVD. SUITE J</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>SAN
      DIEGO, CA 92121</strong></font></div>
    <div><br></div>
    <div><br></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">To
      the
      Shareholders of Franklin Wireless Corp.:</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">On
      behalf
      of the Board of Directors of Franklin Wireless Corp. (the "Company"), I am
      writing to you to solicit your consent to the following proposals:</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">1.&#160;&#160;&#160;&#160;The
      change of our state of incorporation from California to Nevada by merger of
      the
      Company into our wholly owned Nevada subsidiary.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">2.&#160;&#160;&#160;&#160;An
      amendment to our Articles of Incorporation to effect a reverse stock split
      of 1
      share for each 70 shares held.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">3.&#160;&#160;&#160;&#160;Establishing
      the authorized capital of the Company at 50,000,000 shares of Common
      Stock.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">The
      Board
      of Directors has fixed the close of business on October 25, 2007 as the record
      date for the determination of shareholders entitled to consent to the proposals,
      and has set November 23, 2007 as the deadline for receipt of consents. You
      are
      asked to vote, sign, date, and return the enclosed Consent.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">BY
      ORDER
      OF THE BOARD OF DIRECTORS</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><u>/s/
      OC
      Kim&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
</u></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">OC
      Kim</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">President</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">San
      Diego, CA</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">November
      1, 2007</font></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
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      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
        </div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>FRANKLIN
      WIRELESS CORP.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>9823
      PACIFIC HEIGHTS BLVD. SUITE J</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>SAN
      DIEGO, CA 92121</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>___________________</strong></font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>PROXY
      STATEMENT</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>___________________</strong></font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>SOLICITATION
      OF CONSENTS</strong></font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">This
      Proxy Statement is being furnished to the shareholders of Franklin Wireless
      Corp., a California corporation (the "Company"), in connection with the
      solicitation by the Board of Directors of the Company (the "Board of Directors")
      of consents from holders of outstanding shares of the Company&#8217;s Common Stock the
      "Common Stock"), with respect to three proposed corporate actions:
      reincorporation of the Company in Nevada, a reverse stock split, and a
      change&#160;&#160;in the authorized shares of Common Stock (the
      "Proposals.")</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">The
      Proposals are set forth in the form of a Consent of Shareholder (the "Consent"),
      delivered with this Proxy Statement. This Proxy Statement and the accompanying
      form of Consent are first being mailed to shareholders of the Company on or
      about November 8, 2007. The Company will bear all costs and expenses relating
      to
      the solicitation of Consents, including the costs of preparing, printing and
      mailing to shareholders this Proxy Statement and accompanying materials. In
      addition to the solicitation of Consents by mail, the directors, officers and
      employees of the Company, without receiving additional compensation therefor,
      may solicit Consents personally or by telephone, facsimile transmission, or
      email. Arrangements will be made with brokerage firms and other custodians,
      nominees and fiduciaries representing beneficial owners of shares of the Common
      Stock for the forwarding of solicitation materials to such beneficial owners,
      and the Company will reimburse such brokerage firms, custodians, nominees and
      fiduciaries for reasonable expenses incurred by them in doing so.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><strong>VOTING</strong></font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">RECORD
      DATE</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">The
      Board
      of Directors has fixed the close of business on October 25, 2007 as the record
      date for determination of shareholders entitled to consent to, or withhold
      consent from, the Proposals (the "Record Date"). As of the Record Date, there
      were issued and outstanding 926,041,050 shares of Common Stock. The holders
      of
      record of the shares of Common Stock on the Record Date are entitled to cast
      one
      vote per share on each of the Proposals. Accordingly, 926,041,050 votes are
      entitled to be cast on the Proposals.</font></div><br>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center">
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        </div>
      </div>
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        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">CONSENTS</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">A
      shareholder who has executed and returned a Consent may revoke it at any time,
      with respect to one or more of the Proposals, prior to the time that the Company
      has received enough Consents to approve the Proposals, by filing with the
      Secretary of the Company, at the address first set forth above, a written notice
      of revocation bearing a later date than the Consent being revoked. After enough
      Consents have been received in order to approve a Proposal, the Consents
      approving that Proposal shall thereafter be irrevocable. The failure to sign
      and
      return the Consent will have the same effect as a vote against all of the
      Proposals. All Consents must be received by November 23, 2007.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">REQUIRED
      VOTE</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Each
      Proposal will be approved, in accordance with California law and the Articles
      of
      Incorporation of the Company, if shares representing a majority of the
      outstanding shares of Common Stock consent to such Proposal. Abstentions and
      broker non-votes will have the effect of being considered as votes cast against
      the Proposals.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">The
      Board
      has approved each of the Proposals and recommended approval of the Proposals
      to
      the shareholders. If the Proposals are approved, the officers would be
      authorized to effect the transactions set forth in the proposal.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">THE
      PROPOSALS</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">PROPOSAL
      ONE: APPROVAL OF REINCORPORATION IN NEVADA</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">GENERAL</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">The
      Board
      of Directors has approved and declared advisable a proposal to change the
      Company&#8217;s state of incorporation from California to Nevada. The reincorporation
      will be effected by merging the Company into a newly organized Nevada
      corporation, also named Franklin Wireless Corp. (Franklin-Nevada"), in
      accordance with the terms of an Agreement and Plan of Merger (the "Merger
      Agreement"). A copy of the form of Merger Agreement is attached to this Proxy
      Statement as Appendix A, and statements herein regarding such Agreement are
      qualified by reference to the complete Merger Agreement.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">The
      proposed merger will effect a change in the legal domicile and other changes
      of
      a legal nature, the most significant of which are described below. However,
      the
      merger will not result in any change in our business, management, location of
      our principal executive offices, assets, liabilities or net worth (other than
      as
      a result of the costs incident to the merger, which are immaterial). Our
      management, including all directors and officers, will remain the same after
      the
      merger and will assume identical positions with
      Franklin-Nevada.</font></div><br>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center">
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        </div>
      </div>
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        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">FRANKLIN-NEVADA</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Franklin-Nevada,
      which will be the surviving corporation, was incorporated under Nevada law
      on
      October 25, 2007, exclusively for the purpose of merging with the Company.
      Franklin-Nevada has no material assets or liabilities and has not carried on
      any
      business.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Franklin-Nevada&#8217;s
      Articles of Incorporation are substantially similar to the current Articles
      of
      Incorporation of the Company, except for statutory references necessary to
      conform to Nevada corporation laws and other differences attributable to the
      differences between California and Nevada law. A copy of Franklin-Nevada&#8217;s
      Articles of Incorporation is attached as Appendix B.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">THE
      MERGER AGREEMENT</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">To
      effect
      a change in our state of incorporation from California to Nevada,
      Franklin-California and Franklin-Nevada have entered into the "Merger Agreement.
      The Merger Agreement was approved by the Boards of Directors of both
      Franklin-California and Franklin-Nevada (which is controlled by
      Franklin-California). Under the Merger Agreement, Franklin-California will
      merge
      with and into Franklin-Nevada, and Franklin-Nevada will continue as the
      surviving corporation. Generally, the assets and liabilities of
      Franklin-California will become the assets and liabilities of Franklin-Nevada.
      The outstanding shares of Franklin-California Common Stock will automatically
      be
      converted into shares of Common Stock of Franklin-Nevada, par value $0.001
      per
      share (the "Franklin-Nevada Common Stock") upon the effective date of the
      merger. Assuming the reverse stock split, described below, is also approved,
      then each share of Franklin-California will be converted into 1/70th of a share
      of Common Stock of Franklin-Nevada. (If the reverse split is not approved,
      the
      ratio will be one share of Franklin-Nevada for one share of
      Franklin-California).</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Each
      certificate representing shares of Franklin-California Common Stock will
      continue to represent shares of Franklin-Nevada Common Stock.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">The
      Merger Agreement provides that Franklin-California will merge into
      Franklin-Nevada, with Franklin-Nevada then becoming the surviving corporation.
      Franklin-Nevada will assume all assets and liabilities of Franklin-California,
      including obligations under our outstanding debts and contracts. Our existing
      Board of Directors and officers will become the board of directors and officers
      of Franklin-Nevada, for identical terms of office.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">PLEASE
      NOTE: Shareholders need not exchange their existing stock certificates for
      stock
      certificates of Franklin-Nevada. However, after consummation of the merger,
      any
      shareholders desiring new stock certificates representing common stock of
      Franklin-Nevada may submit their stock certificates to Integrity Stock Transfer,
      our transfer agent, for cancellation, and obtain new
      certificates.</font></div><br>
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        </div>
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      </div>
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        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">COMPARISON
      OF SHAREHOLDER RIGHTS UNDER NEVADA AND CALIFORNIA CORPORATE LAW AND CHARTER
      DOCUMENTS BEFORE AND AFTER REINCORPORATION</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Although
      it is not practical to compare all aspects of Nevada law and California law
      as
      they relate to the Company&#8217;s corporate existence, its Articles of Incorporation
      or Bylaws, the following is a summary of certain pertinent aspects that we
      believe may significantly affect the rights of the shareholders. This summary
      is
      not intended to be relied upon as an exhaustive list or a complete description
      of such pertinent differences, and is qualified in its entirety by reference
      to
      the Nevada Revised Statutes ("NRS"), the California Corporations Code and the
      Articles of Incorporation and Bylaws of Franklin-Nevada.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">SIZE
      OF
      THE BOARD OF DIRECTORS. Under California law, changes in the number of directors
      or, if set forth in the articles of incorporation or bylaws, the range in the
      number of directors, must in general be approved by a majority of the
      outstanding shares, but the board of directors may fix the exact number of
      directors within a stated range, if authorized. Nevada law permits not only
      the
      stockholders but also the board of directors acting independently of the
      stockholders to change the authorized number, or the range, of directors by
      amendment to the bylaws, unless the directors are not authorized to amend the
      bylaws or the number of directors is fixed in the articles of incorporation
      (in
      which case a change in the number of directors may be made only by amendment
      to
      the articles of incorporation following approval of such change by the
      stockholders). The Articles of Incorporation of Franklin-Nevada provide that
      the
      number of directors shall be as specified in the Bylaws. The ability of the
      Board of Directors, under Nevada law, to alter the size of the Board without
      stockholder approval enables the Company to respond quickly to a potential
      opportunity to attract the services of a qualified director or to eliminate
      a
      vacancy for which a suitable candidate is not available. If the reincorporation
      is approved, the Bylaws of Franklin-Nevada will initially provide for a
      five-member Board of Directors.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">POWER
      TO
      CALL SPECIAL SHAREHOLDERS&#8217; MEETINGS. Under California law, a special meeting of
      shareholders may be called by (a) the board of directors, (b) the chairman
      of
      the board, (c) the president, (d) the holders of shares entitled to cast not
      less than ten percent of the votes at such meeting, or (e) such additional
      persons as are authorized by the articles of incorporation or the bylaws. Under
      Nevada law, a special meeting of stockholders may be called as set forth in
      the
      bylaws. Although permitted to do so, the Bylaws of Franklin-Nevada do not
      eliminate the right of stockholders to call a special meeting of stockholders;
      instead, the Bylaws authorize the Board of Directors, the President or the
      holders of at least ten percent of the outstanding capital stock to call a
      special meeting of stockholders. Following the reincorporation, the Board of
      Directors of Franklin-Nevada could (although it has no current intention to
      do
      so) amend the Bylaws to limit or eliminate the right of stockholders to call
      a
      special meeting of stockholders. The right of the stockholders to call a special
      meeting is not set forth in the Articles of Incorporation of Franklin-Nevada,
      which may be amended only by stockholder vote or written consent, and therefore
      such right may be limited or eliminated by amendment of the Bylaws by the Board
      of Directors. Any such limitation could make it more difficult for stockholders
      to initiate action that is opposed by the Board of Directors. Such action on
      the
      part of stockholders could include the removal of an incumbent director, the
      election of a stockholder nominee as a director or the implementation of a
      rule
      requiring stockholder ratification of specific defensive strategies that have
      been adopted by the Board of Directors with respect to unsolicited takeover
      bids. The ability of the Board of Directors under Nevada law to limit or
      eliminate the right of stockholders to initiate action at stockholder meetings
      may make it more difficult to change the existing Board of Directors and
      management.</font></div><br>
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    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">QUORUM
      FOR SHAREHOLDER MEETINGS. Under the NRS, unless otherwise provided in a
      corporation&#8217;s Articles of Incorporation or its Bylaws, a majority of shares
      entitled to vote on a matter constitutes a quorum at a meeting of
      shareholders.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">SHAREHOLDER
      VOTING REQUIREMENTS. Under the NRS, if a quorum is present, directors are
      generally elected if they receive more votes favoring their election than
      opposing it, unless a greater number of votes is required by the by-laws. With
      respect to matters other than the election of directors, unless a greater number
      of affirmative votes is required by the NRS, if a quorum is present, a proposal
      generally is approved if the votes cast by Shareholders favoring the action
      exceed the votes cast by Shareholders opposing the action. Under the NRS, and
      unless otherwise provided by the NRS or a Nevada corporation&#8217;s Articles of
      Incorporation or Bylaws, a proposal is approved by the affirmative vote of
      a
      majority of the shares represented at a meeting and entitled to vote on the
      matter. As a result, abstentions under Nevada law have the effect of a vote
      against most proposals.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Under
      the
      NRS, in the case of a merger, consolidation or a sale, lease or exchange of
      all
      or substantially all of the assets of a corporation, the affirmative vote of
      the
      holders of a majority of the issued and outstanding shares entitled to vote
      are
      generally required.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">CUMULATIVE
      VOTING. California law generally provides that if any shareholder has given
      notice of his or her intention to cumulate votes for the election of directors,
      any other shareholder of the corporation is also entitled to cumulate his or
      her
      votes at such election. Under Nevada law, cumulative voting is not mandatory,
      and cumulative voting rights must be provided in a corporation&#8217;s articles of
      incorporation if stockholders are to be entitled to cumulative voting rights.
      The Articles of Incorporation of Franklin-Nevada do not provide for cumulative
      voting. California law permits a corporation that is listed on a national
      securities exchange, or that is listed on the Nasdaq National Market and has
      at
      least 800 stockholders as of the record date for the corporation&#8217;s most recent
      annual meeting of shareholders, to amend its articles or bylaws to eliminate
      cumulative voting by approval of the board of directors and of the outstanding
      shares voting together as a class.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">BUSINESS
      COMBINATIONS. In recent years, a number of states, including Nevada, have
      adopted special laws designed to make certain kinds of "unfriendly" corporate
      takeovers, or other transactions involving a corporation and one or more of
      its
      significant stockholders, more difficult.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Sections
      78.411 to 78.444 of the Nevada General Corporation Law prohibit a Nevada
      corporation from engaging in a "combination" with an "interested stockholder"
      for three years following the date that such person becomes an interested
      stockholder and place certain restrictions on such combinations even after
      the
      expiration of the three-year period. With certain exceptions, an interested
      stockholder is a person or group that owns 10% or more of the corporation&#8217;s
      outstanding voting power (including stock with respect to which the person
      has
      voting rights and any rights to acquire stock pursuant to an option, warrant,
      agreement, arrangement, or understanding or upon the exercise of conversion
      or
      exchange rights) or is an affiliate or associate of the corporation and was
      the
      owner of 10% or more of such voting stock at any time within the previous three
      years.</font></div><br>
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        </div>
      </div>
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        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">For
      purposes of Sections 78.411 to 78.444, the term "combination" is defined broadly
      to include mergers of the corporation or its subsidiaries with the interested
      stockholder; sales or other dispositions to the interested stockholder of assets
      of the corporation or a subsidiary equal to 5% of the aggregate value of all
      assets of the corporation, equal to 5% of the value of all outstanding shares
      of
      the corporation, or representing 10% of the corporation&#8217;s earning power or net
      income; the issuance or transfer by the corporation or a subsidiary of shares
      equal to 5% of the value of all outstanding shares of the corporation to the
      interested stockholder (except under the exercise of warrants or rights to
      purchase shares offered or in a pro rata distribution); and a variety of other
      similar transactions.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">The
      three-year moratorium imposed on business combinations by Sections 78.411 to
      78.444 does not apply if, prior to the date on which such stockholder becomes
      an
      interested stockholder, the board of directors approves either the business
      combination or the transaction that resulted in the person becoming an
      interested stockholder.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Even
      after expiration of the three-year period, the moratorium on combinations
      continues to apply unless one of the following requirements is met: (i) prior
      to
      the date on which such stockholder becomes an interested stockholder the board
      of directors approves either the business combination or the transaction that
      resulted in the person becoming an interested stockholder; (ii) the combination
      is approved by a majority of the voting power not beneficially owned by the
      interested stockholder or its affiliates or associates at a meeting called
      for
      that purpose; or (iii) the combination satisfies certain provisions concerning
      fair price.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Sections
      78.411 to 78.444 only apply to Nevada corporations that have 200 or more
      stockholders and, unless the articles of incorporation provide otherwise, have
      a
      class of voting shares registered under Section 12 of the Securities Exchange
      Act of 1934 (as the Common Stock of Franklin-Nevada would be upon consummation
      of the reincorporation). A Nevada corporation may elect not to be governed
      by
      Sections 78.411 to 78.444 by a provision in its original certificate of
      incorporation or an amendment thereto, which amendment must be approved by
      a
      majority of the outstanding voting power, although such amendment is not
      effective until 18 months after the vote. Franklin-Nevada has not elected,
      and
      does not intend to elect, not to be governed by these Sections; therefore,
      Sections 78.411 to 78.444 will apply to Franklin-Nevada.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Sections
      78.411 to 78.444 should encourage any potential acquirer to negotiate with
      the
      Company&#8217;s Board of Directors. These Sections also have the effect of limiting
      the ability of a potential acquirer to make a two-tiered bid for the Company
      in
      which stockholders would be treated unequally. Shareholders should note that
      the
      application of these Sections to the Company will confer upon the Board the
      power to reject a proposed business combination, even though a potential
      acquirer may be offering a substantial premium for the Company&#8217;s shares over the
      then-current market price. These Sections should also discourage certain
      potential acquirers unwilling to comply with their provisions.</font></div><br>
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        </div>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">CONTROL
      SHARES. Nevada law further seeks to impede "unfriendly" corporate takeovers
      by
      providing in Sections 78.378 to 78.3793 of the Nevada General Corporation Law
      that an "acquiring person" shall only obtain voting rights in the "control
      shares" purchased by such person to the extent approved by the other
      stockholders at a meeting. With certain exceptions, an acquiring person is
      one
      who acquires or offers to acquire a "controlling interest" in the corporation,
      defined as one-fifth or more of the voting power. Control shares include not
      only shares acquired or offered to be acquired in connection with the
      acquisition of a controlling interest, but also all shares acquired by the
      acquiring person within the preceding 90 days. The statute covers not only
      the
      acquiring person but also any persons acting in association with the acquiring
      person. California does not have a control shares statute.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Under
      Sections 78.378 to 78.3793, a Nevada corporation may, if so provided in the
      articles of incorporation or bylaws of the corporation in effect on the tenth
      day following acquisition of a controlling interest, call for redemption of
      not
      less than all of the control shares at the average price paid for the control
      shares if (i) the acquiring person has not delivered an offeror&#8217;s statement to
      the corporation within ten days after acquisition of the control shares or
      (ii)
      the other stockholders do not accord full voting rights to the control
      shares.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Unless
      otherwise provided in the articles of incorporation or bylaws in effect on
      the
      tenth day following acquisition of a controlling interest, if the control shares
      are accorded full voting rights and the acquiring person has acquired a majority
      of the voting power, then any stockholder of record who did not vote in favor
      of
      authorizing such voting rights is entitled to demand payment for the fair value
      of such stockholder&#8217;s shares.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">REMOVAL
      OF DIRECTORS. Under California law, any director or the entire board of
      directors may be removed, with or without cause, by the affirmative vote of
      a
      majority of the outstanding shares entitled to vote; however, no individual
      director may be removed (unless the entire board is removed) if the number
      of
      votes cast against such removal, or not consenting in writing to removal, would
      be sufficient to elect the director under cumulative voting. Under Nevada law,
      any director may be removed from office by the vote of stockholders representing
      not less than two-thirds of the voting power of the class or series of stock
      of
      the Company entitled to elect such director, unless the articles of
      incorporation provide for cumulative voting or a larger percentage of voting
      stock. If a Nevada corporation&#8217;s articles of incorporation provide for
      cumulative voting, a director may not be removed except upon the vote of
      stockholders owning sufficient voting power to have prevented such director&#8217;s
      election in the first instance. The Articles of Incorporation of Franklin-Nevada
      do not provide for cumulative voting, and do not specify any larger percentage
      for removal; therefore, two-thirds of the voting power of the class or series
      of
      stock entitled to elect a director may remove such director.</font></div><br>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">FILLING
      VACANCIES ON THE BOARD OF DIRECTORS. Under California law, unless the articles
      of incorporation or bylaws provide otherwise, any vacancy on the board of
      directors not created by removal of a director may be filled by the board.
      If
      the number of directors is less than a quorum, a vacancy may be filled by the
      unanimous written consent of the directors then in office, by the affirmative
      vote of a majority of the directors at a meeting held pursuant to notice or
      waivers of notice, or by a sole remaining director. Unless the articles of
      incorporation or bylaws otherwise provide, a vacancy created by removal of
      a
      director may be filled only by approval of the shareholders. Franklin&#8217;s Bylaws
      permit directors to fill vacancies; however, if the vacancy was created by
      the
      removal of a director by the vote or written consent of the shareholders or
      by
      court order, the vacancy may be filled only by the affirmative vote of a
      majority of shares represented and voting at a duly held meeting at which a
      quorum is present, or by the unanimous written consent of all the shares
      entitled to vote thereon. Under Nevada law, unless a corporation&#8217;s articles of
      incorporation provide otherwise, any vacancy on the board of directors,
      including one created by removal of a director or an increase in the number
      of
      authorized directors, may be filled by the majority of the remaining directors,
      even if such number constitutes less than a quorum. Nevada law would thus enable
      the Board of Directors to respond quickly to opportunities to attract the
      services of qualified directors; but it would also diminish control of the
      Board
      by the shareholders of the Company between meetings.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">LOANS
      TO
      OFFICERS AND EMPLOYEES. Under California law, any loan to or guarantee for
      the
      benefit of a director or officer of a corporation or its parent requires
      approval of the shareholders, not counting any shares owned by the relevant
      director or officer, unless such loan or guaranty is provided under an employee
      benefit plan approved by shareholders owning a majority of the outstanding
      shares of the corporation. In addition, under California law shareholders of
      any
      corporation with 100 or more shareholders of record may approve a bylaw
      authorizing the board of directors alone, not counting the vote of any
      interested director, to approve loans or guarantees to or on behalf of officers
      (whether or not such officers are directors) if the board determines that any
      such loan or guaranty may reasonably be expected to benefit the corporation.
      These specific provisions of California law dealing with loans and guarantees
      would no longer apply after the reincorporation.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">LIMITATION
      OF LIABILITY AND INDEMNIFICATION. California and Nevada have similar laws
      respecting indemnification by a corporation of its officers, directors,
      employees, and other agents. The laws of both states also permit corporations
      to
      adopt a provision in their articles of incorporation eliminating the liability
      of a director to the corporation or its shareholders for monetary damages for
      breach of the director&#8217;s fiduciary duty of care. There are nonetheless certain
      differences between the laws of the two states respecting indemnification and
      limitation of liability.</font></div><br>
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        </div>
      </div>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">The
      Articles of Incorporation of Franklin-California eliminate the liability of
      directors to the fullest extent permissible under California law. California
      law
      permits eliminating or limiting the personal liability of a director for
      monetary damages in an action brought by or in the right of the corporation
      (a
      "derivative suit") for breach of a director&#8217;s duties to the corporation and its
      shareholders; provided, however, that the corporation may not eliminate or
      limit
      liability for (i) intentional misconduct or knowing and culpable violation
      of
      law; (ii) acts or omissions that a director believes to be contrary to the
      best
      interests of the corporation or its shareholders, or that involve the absence
      of
      good faith on the part of the director; (iii) receipt of an improper personal
      benefit; (iv) acts or omissions that show reckless disregard for the director&#8217;s
      duty to the corporation or its shareholders, where the director in the ordinary
      course of performing a director&#8217;s duties should be aware of a risk of serious
      injury to the corporation or its shareholders; (v) acts or omissions that
      constitute an unexcused pattern of inattention that amounts to an abdication
      of
      the director&#8217;s duty to the corporation or its shareholders; (vi) interested
      transactions between the corporation and a director in which a director has
      a
      material financial interest; and (vii) liability for improper distributions,
      loans, or guarantees.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">The
      Articles of Incorporation of Franklin-Nevada eliminate the liability of both
      directors and officers to the fullest extent permissible under Nevada law,
      as
      such law exists currently or as it may be amended in the future. Under Nevada
      law, such provision may not eliminate or limit director or officer monetary
      liability for (i) acts or omissions involving intentional misconduct, fraud,
      or
      a knowing violation of law or (ii) the payment of certain prohibited
      distributions. Such limitation of liability provision also may not limit a
      director&#8217;s or officer&#8217;s liability for violation of, or otherwise relieve
      Franklin Nevada or its directors or officers from the necessity of complying
      with, federal or state securities laws, or affect the availability of
      nonmonetary remedies such as injunctive relief or rescission.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">California
      law permits indemnification of expenses incurred in derivative or third-party
      actions, except that, with respect to derivative actions, (a) no indemnification
      may be made when a person is adjudged liable to the corporation in the
      performance of that person&#8217;s duty to the corporation and its shareholders unless
      a court determines such person is entitled to indemnity for expenses, and then
      such indemnification may be made only to the extent that such court shall
      determine, and (b) no indemnification may be made in respect of amounts paid
      in
      settling or otherwise disposing of a pending action, or expenses incurred in
      defending a pending action that is settled or otherwise disposed of, without
      court approval. Indemnification is permitted by California law only for acts
      taken in good faith and believed to be in the best interests of the corporation
      and its shareholders, as determined by a majority vote of a disinterested quorum
      of the directors, independent legal counsel (if a quorum of independent
      directors is not obtainable), a majority vote of a quorum of the shareholders
      (excluding shares owned by the indemnified party), or the court handling the
      action.</font></div><br>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center">
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        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">California
      law requires indemnification when the individual has successfully defended
      the
      action on the merits (as opposed to Nevada law, which requires indemnification
      relating to a successful defense on the merits or otherwise). Nevada law
      generally permits indemnification of expenses incurred in the defense or
      settlement of a derivative or third-party action, provided that, unless a court
      orders indemnification or the corporation is bound to advance expenses as they
      are incurred, there is a determination by a disinterested quorum of the
      directors, by independent legal counsel, or by the stockholders that the person
      seeking indemnification acted in good faith and in a manner reasonably believed
      to be in or (in contrast to California law) not opposed to the best interests
      of
      the corporation. Without court approval, however, no indemnification may be
      made
      in respect of any derivative action in which such person is adjudged liable
      to
      the corporation. Nevada law requires indemnification of expenses when the
      individual being indemnified has successfully defended any action, claim, issue,
      or matter therein, whether on the merits or otherwise.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Nevada
      law states that the indemnification provided by statute shall not be deemed
      exclusive of any other rights under the articles of incorporation, any bylaw,
      agreement, vote of stockholders or disinterested directors, or otherwise. The
      current officer and director of the Company has not and does not intend to
      enter
      into an indemnification agreement with Franklin-Nevada, but in the future such
      an indemnification agreement may be adopted that conforms to Nevada law and
      includes within its purview future changes in Nevada law that expand the
      permissible scope of indemnification of directors and officers of Nevada
      corporations.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Nevada
      law provides that the articles of incorporation or bylaws or an agreement made
      by a corporation may provide that the expenses of directors and officers
      incurred in defending an action must be paid by the corporation as they are
      incurred and in advance of the final disposition of the action upon receipt of
      an undertaking by or on behalf of the director or officer to repay the amount
      if
      the court ultimately determines that such person is not entitled to
      indemnification. The Articles of Incorporation and the Bylaws of Franklin-Nevada
      provide that the Company shall indemnify directors and officers to the fullest
      extent permitted under Nevada law, and that the Company shall pay all expenses
      incurred in defending an action in advance. The Bylaws of Franklin-Nevada also
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">permit
      such indemnification of and advancement of expenses to employees and agents
      of
      the Company.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Nevada
      law further provides that a corporation may purchase and maintain insurance
      or
      make other financial arrangements on behalf of any director, officer, employee,
      or agent of the corporation (or person who is serving in such capacity with
      another enterprise at the request of the corporation), whether or not the
      corporation has the authority to indemnify such person. These other financial
      arrangements may include a trust fund, self-insurance, securing the
      corporation&#8217;s obligation by granting a security interest or other lien, or
      establishing a letter of credit, guaranty, or surety, although no financial
      arrangement may provide protection for intentional misconduct, fraud, or a
      knowing violation of law except with respect to the advancement of expenses
      or
      unless ordered by a court. In the absence of fraud, the decision of the board
      of
      directors as to the propriety of any insurance or other financial arrangement
      is
      conclusive, and the insurance or other financial arrangement is not void or
      voidable and does not subject any director approving it to personal liability
      even if such director is a beneficiary of the insurance or other financial
      arrangement. The Bylaws of Franklin-Nevada permit the Company to purchase and
      maintain insurance and make such other financial arrangements.</font></div><br>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
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      </div>
      <div id="HDR">
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        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">INSPECTION
      OF SHAREHOLDER LISTS AND BOOKS AND RECORDS. California law allows any
      shareholder to inspect the shareholder list, the accounting books and records,
      and the minutes of board and shareholder proceedings for a purpose reasonably
      related to such person&#8217;s interest as a shareholder. California law provides, in
      addition, for an absolute right to inspect and copy the corporation&#8217;s
      shareholder list by persons who hold an aggregate of five percent or more of
      a
      corporation&#8217;s voting shares or who hold one percent or more of such shares and
      have filed a Schedule 14A with the Securities and Exchange
      Commission.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Nevada
      law allows inspection of a stockholder list only upon five days&#8217; notice by
      either a person who has been a stockholder of record at least six months or
      a
      person holding, or authorized in writing by the holder of, five percent of
      the
      corporation&#8217;s outstanding shares. In addition, the corporation may deny such
      inspection rights if the stockholder requesting disclosure refuses to sign
      an
      affidavit to the effect that (i) the inspection is not desired for a purpose
      that is in the interest of a business or object other than the business of
      the
      corporation and (ii) the stockholder has not at any time sold or offered for
      sale any list of stockholders of any corporation or aided and abetted any other
      person for such purpose. To inspect the accounting and financial books and
      records of a corporation, a stockholder must hold or have the written
      authorization of the holders of at least 15% of all issued and outstanding
      shares, and a corporation may demand an affidavit to the effect that such
      inspection is not desired for any purpose not related to such person&#8217;s interest
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">in
      the
      corporation as a stockholder. No right to inspect the accounting and financial
      books and records applies to any corporation listed and traded on a recognized
      stock exchange or which furnishes detailed annual financial statements to its
      stockholders.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Lack
      of
      access to stockholder records, even though unrelated to the stockholder&#8217;s
      interests as a stockholder, could result in impairment of the stockholder&#8217;s
      ability to coordinate opposition to management proposals, including proposals
      with respect to a change in control of the Company. However, California law
      provides that California provisions concerning the inspection of shareholder
      lists apply not only to California corporations but also to corporations
      organized under the laws of other states that have their principal executive
      offices in California or customarily hold meetings of the board in California,
      and that the California provisions concerning accounting books and records
      and
      the minutes of board and shareholder proceedings apply to any such foreign
      corporation that has its principal executive offices in California. For so
      long
      as the Company continues to have its principal executive offices in California
      and to hold board of directors meetings in California, and to the extent such
      provisions applicable to foreign corporations are enforceable, the Company
      will
      need to comply with California law concerning shareholder</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">inspections.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">DIVIDENDS
      AND REPURCHASES OF SHARES. Under California law, a corporation may not make
      any
      distribution (including dividends, whether in cash or other property, and
      repurchases of its shares) unless, immediately prior to the proposed
      distribution, the corporation&#8217;s retained earnings equal or exceed the amount of
      the proposed distribution or, immediately after giving effect to such
      distribution, the corporation&#8217;s assets (exclusive of goodwill, capitalized
      research and development expenses, and deferred charges) would be at least
      equal
      to 125% of its liabilities (not including deferred taxes, deferred income,
      and
      other deferred credits) and the corporation&#8217;s current assets would be at least
      equal to its current liabilities (or 125% of its current liabilities if the
      average pre-tax and pre-interest expense earnings for the preceding two fiscal
      years were less than the average interest expense for such years). California
      also prohibits any distribution if the corporation or subsidiary making the
      distribution is or would be likely to be unable to meet its liabilities.
      California also prohibits making any distribution to a class or series of shares
      junior to another class or series with respect to a liquidation preference
      unless after giving effect to the distribution the excess of assets over
      liabilities is at least equal to the liquidation preference of all such shares
      or, in the case of a dividend preference, retained earnings prior to the
      distribution at least equal the proposed distribution plus cumulative dividends
      in arrears on all such shares.</font></div><br>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center">
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        </div>
      </div>
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        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Nevada
      law prohibits a distribution (including dividends, purchases, redemptions or
      other acquisition of shares, distributions of indebtedness, or otherwise) if,
      after giving effect to the distribution, (i) the corporation would not be able
      to pay its debts as they become due in the usual course of business or (ii)
      except as provided in the articles of incorporation, the corporation&#8217;s total
      assets would be less than the sum of its total liabilities plus the amount
      that
      would be needed, if the corporation were to be dissolved at the time of
      distribution, to satisfy the preferential rights upon dissolution of
      stockholders whose preferential rights are superior to those receiving the
      distribution.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">To
      date,
      the Company has not paid cash dividends on its capital stock. It is the present
      policy of the Board of Directors to retain earnings for use in the Company&#8217;s
      business, and the Company does not anticipate paying cash dividends on its
      capital stock in the foreseeable future.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">SHAREHOLDER
      VOTING. Both California and Nevada law generally require that a majority of
      shareholders of both the acquiring and target corporations approve statutory
      mergers. Nevada law does not require a stockholder vote of the surviving
      corporation in a merger (unless the corporation provides otherwise in its
      articles of incorporation) if (i) the merger agreement does not amend the
      existing articles of incorporation of the surviving corporation, (ii) each
      stockholder of the surviving corporation whose shares were outstanding before
      the merger will hold the same number of shares with identical designations,
      preferences, limitations, and relative rights after the merger, and (iii) the
      number of shares outstanding after the merger plus the number of shares issued
      as a result of the merger, either by conversion or exercise of securities issued
      pursuant to the merger, will not exceed by more than 10% the number of shares
      of
      the surviving corporation outstanding immediately prior to the merger.
      California law contains a similar exception to its voting requirements for
      reorganizations where shareholders or the corporation itself, or both,
      immediately prior to the reorganization will own immediately after the
      reorganization equity securities constituting more than five-sixths of the
      voting power of the surviving or acquiring corporation or its parent entity.
      Both California and Nevada law also require that a sale of all or substantially
      all of the assets of a corporation be approved by a majority of the voting
      shares of the corporation transferring such assets. With certain exceptions,
      California law also requires that mergers, reorganizations, certain sales of
      assets, and similar transactions be approved by a majority vote of each class
      of
      shares outstanding. By contrast, Nevada law generally does not require class
      voting, except in certain transactions involving an amendment to the articles
      of
      incorporation that differentially affects a specific class of shares. As a
      result, stockholder approval of such transactions may be easier to obtain under
      Nevada law for companies that have more than one class of shares
      outstanding.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">California
      law also requires that, except in a short-form merger or a merger of a parent
      corporation into its subsidiary in which it owns at least 90% of the outstanding
      shares, if a constituent corporation in the merger or its parent owns at least
      50% of another constituent corporation in the merger, the non-redeemable common
      shares of a constituent corporation may be converted only into nonredeemable
      common shares of the surviving corporation or a parent party unless all
      shareholders of the class consent. This provision of California law may have
      the
      effect of making a "cash-out" merger by a majority shareholder more difficult
      to
      accomplish. Although Nevada law does not parallel California law in this
      respect, under some circumstances Sections 78.411 to 78.444 (business
      combinations with interested stockholders) and Sections 78.378 to 78.3793(voting
      rights of acquiring person&#8217;s control shares) of the Nevada General Corporation
      Law do provide similar protection against coercive two- tiered bids for a
      corporation in which the stockholders are not treated equally.</font></div><br>
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        </div>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">California
      law provides that, except in certain circumstances, when a tender offer or
      a
      proposal for a reorganization or for a sale of assets is made by an interested
      party (generally a controlling or managing party of the target corporation),
      an
      affirmative opinion in writing as to the fairness of the consideration to be
      paid to the shareholders must be delivered to the shareholders. This fairness
      opinion requirement does not apply to a corporation that does not have shares
      held of record by at least 100 persons or to a transaction that has been
      qualified under California state securities laws. Furthermore, if a tender
      of
      shares or vote is sought pursuant to an interested party&#8217;s proposal and a later
      proposal is made by another party at least ten days prior to the date of
      acceptance of the interested party proposal, the shareholders must be informed
      of the later offer and be afforded a reasonable opportunity to withdraw any
      vote, consent, or to withdraw any tendered shares. Nevada law has no comparable
      provision.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">INTERESTED
      DIRECTOR TRANSACTIONS. Under both California and Nevada law, certain contracts
      or transactions in which one or more of a corporation&#8217;s directors have an
      interest are not void or voidable because of such interest provided that certain
      conditions, such as obtaining the required approval and fulfilling the
      requirements of good faith and full disclosure, are met. With certain
      exceptions, the conditions are similar under California and Nevada law. Under
      California and Nevada law, either (i) the shareholders or the board of directors
      must approve any such contract or transaction after full disclosure of the
      material facts and, in the case of board approval, the contract or transaction
      must also be "just and reasonable" (in California) to the corporation19 or
      (ii)
      the contract or transaction must have been "just and reasonable" (in California)
      or "fair" (in Nevada) to the corporation at the time it was approved. In the
      latter case, California law explicitly places the burden of proof on the
      interested director. If board approval is sought, the contract or transaction
      must be approved by a majority vote of a quorum of the directors, without
      counting the vote of any interested directors (except that interested directors
      may be counted for purposes of establishing a quorum). Under California law,
      if
      shareholder approval is sought, the interested director is not entitled to
      vote
      such director&#8217;s shares at a shareholder meeting with respect to any action
      regarding such contract or transaction, whereas Nevada law requires that such
      director&#8217;s votes be counted for such purpose. Nevada law also provides that the
      transaction is not void or voidable if the fact of the common directorship,
      office, or financial interest at issue is not disclosed or known to the director
      at the time the transaction is brought before the board for action. Nevada
      law
      addresses not only interested directors but also transactions with interested
      officers.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">DISSENTERS&#8217;
      RIGHTS. Under Nevada law, dissenters&#8217; (or appraisal) rights are not available in
      a merger or share exchange if the shares held by the stockholders prior to
      the
      share exchange or merger were either listed on a national securities exchange
      or
      held by at least 2,000 stockholders of record, unless the articles of
      incorporation of the corporation provide for dissenters&#8217; rights or the
      stockholders are required to accept under the plan of merger or share exchange
      anything other than cash, shares of the surviving corporation, shares of a
      publicly traded or widely held corporation, or a combination of
      these.</font></div><br>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">The
      limitations on the availability of appraisal rights under California law are
      different from those under Nevada law. Shareholders of a California corporation
      whose shares are listed on a national securities exchange or on a list of
      over-the-counter margin stocks issued by the Board of Governors of the Federal
      Reserve System generally do not have such appraisal rights unless the holders
      of
      at least five percent of the class of outstanding shares claim the right or
      unless the corporation or any law restricts the transfer of such shares.
      Appraisal rights are also unavailable if the shareholders of a corporation
      or
      the corporation itself, or both, immediately prior to the reorganization will
      own immediately after the reorganization equity securities constituting more
      than five-sixths of the voting power of the surviving or acquiring corporation
      or its parent entity (as will be the case under the reincorporation). Appraisal
      or dissenters&#8217; rights are, therefore, not available to shareholders of Franklin
      with respect to the reincorporation.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">POSSIBLE
      APPLICATION OF THE GENERAL CORPORATION LAW OF CALIFORNIA AFTER THE
      REINCORPORATION.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Under
      Section 2115 of the California General Corporation Law, certain foreign
      corporations (i.e., corporations not organized under California law) are placed
      in a special category if they have characteristics of ownership and operation
      indicating that they have certain significant business contacts with California
      and more than one half of their voting securities are held of record by persons
      having addresses in California. So long as a Nevada or other foreign corporation
      is in this special category, and it does not qualify for one of the statutory
      exemptions, it may be subject to a number of key provisions of the California
      General Corporation Law applicable to corporations incorporated in California.
      Among the more important provisions are those relating to the election and
      removal of directors, cumulative voting, prohibition of classified boards of
      directors in privately held corporations, standards of liability and
      indemnification of directors, distributions, dividends and repurchases of
      shares, shareholder meetings, approval of certain corporate transactions,
      dissenters&#8217; and appraisal rights, and inspection of corporate
      records.&#160;&#160;An exemption from Section 2115 is provided for a corporation
      whose shares are listed on a major national securities exchange, or are traded
      on the Nasdaq National Market and has 800 or more shareholders as of the record
      date for its most recent annual meeting of shareholders. As Franklin-Nevada
      will
      have not have its shares listed on a major national securities exchange for
      the
      foreseeable future, the Company will not qualify for the exemption from 2115
      described above.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">REASONS
      FOR THE REINCORPORATION</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">We
      believe that the reincorporation in Nevada will give us more flexibility and
      simplicity in various corporate transactions. Nevada has adopted corporate
      laws
      that that includes by statute many concepts created by judicial rulings in
      other
      jurisdictions, which provide a less burdensome business and corporate
      environment than California laws. It should be noted, however, that many of
      the
      provisions of Nevada law have not yet received extensive scrutiny and
      interpretation. Nevertheless, the Board of Directors believes that Nevada law
      will provide the Company with the comprehensive flexible structure which it
      needs to operate effectively.</font></div><br>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center">
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        </div>
      </div>
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        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">PROPOSAL
      TWO: REVERSE STOCK SPLIT</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">The
      Board
      of Directors has approved, subject to shareholder approval, a reverse stock
      split under which each outstanding share of Common Stock will be converted
      into
      1/70th of one share. If approved by the shareholders, the reverse stock split
      will be implemented in connection with the reincorporation, under which the
      shareholders will receive one share of Franklin-Nevada for each 70 shares held
      in Franklin-California.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">The
      purpose of the reverse split is to reduce the number of outstanding shares,
      in
      an effort to increase the market value of the remaining outstanding shares.
      In
      approving the reverse split, the Board of Directors considered that the
      Company&#8217;s Common Stock may not appeal to brokerage firms that are reluctant to
      recommend lower priced securities to their clients. Investors may also be
      dissuaded from purchasing lower priced stocks because the brokerage commissions,
      as a percentage of the total transaction, tend to be higher for such stocks.
      Moreover, analysts at many brokerage firms do not monitor the trading activity
      or otherwise provide coverage of lower priced stocks. The Board of Directors
      also believes that most investment funds are reluctant to invest in lower priced
      stocks.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">When
      the
      trading price of the Company&#8217;s Common Stock is below $5.00 per share, the Common
      Stock is considered to be "penny stock," which is subject to rules promulgated
      by the Commission (Rule 15-1 through 15g-9) under the Exchange Act. These rules
      impose significant requirements on brokers under these circumstances, including:
      (a) delivering to customers the Commission&#8217;s standardized risk disclosure
      document; (b) providing to customers current bid and offers; (c) disclosing
      to
      customers the broker-dealer and sales representatives&#8217; compensation; and (d)
      providing to customers monthly account statements. These rules can have a
      negative effect on the price of stocks subject to the rules.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">The
      Board
      of Directors proposed the reverse split as one method to attract investors
      as
      well as gain negotiating leverage in using the Common Stock of the Company
      with
      regard to existing and new business opportunities. The Company believes that
      the
      reverse split may improve the price level of the Company&#8217;s Common Stock and that
      this higher share price could help generate additional interest in the
      Company.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">POTENTIAL
      RISKS OF THE REVERSE SPLIT</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">There
      can
      be no assurance that the price of the Company&#8217;s Common Stock will continue at a
      level in proportion to the reduction in the number of outstanding shares
      resulting from the reverse split, that the reverse split will result in a per
      share price that will increase its ability to attract corporate and investment
      opportunities or that the market price of the post-split Common Stock can be
      maintained. The market price of the Company&#8217;s Common Stock will also be based on
      its financial performance, market condition, the market perception of its future
      prospects and the Company&#8217;s industry as a whole, as well as other factors, many
      of which are unrelated to the number of shares outstanding. If the market price
      of the Company&#8217;s Common Stock declines after the reverse split, the percentage
      decline as an absolute number and as a percentage of the Company&#8217;s overall
      capitalization may be greater than would occur in the absence of a reverse
      split. The possibility exists that the reduced number of outstanding shares
      will
      adversely affect the market for the Common Stock by reducing the relative level
      of liquidity. In addition, the reverse split may increase the number of
      Shareholders who own odd lots, or less than 100 shares. Shareholders who own
      odd
      lots typically find it difficult to sell their shares and frequently find odd
      lot sales more expensive than round lot sales of 100 shares or
      more.</font></div><br>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center">
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        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">EFFECT
      ON
      AUTHORIZED AND OUTSTANDING SHARES.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">There
      are
      926,041,050 shares of Common Stock issued and outstanding as of the record
      date.
      As a result of the reverse split, the number of shares of Common Stock issued
      and outstanding will be reduced to the number of shares of Common Stock issued
      and outstanding immediately prior to the effectiveness of the reverse split,
      divided by seventy, or approximately 13,229,158.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">With
      the
      exception of the number of shares issued and outstanding, the rights and
      preferences of the shares of Common Stock prior and subsequent to the reverse
      split will remain the same. It is not anticipated that the Company&#8217;s financial
      condition, the percentage of ownership of management, the number of
      shareholders, or any aspect of the Company&#8217;s business would materially change,
      solely as a result of the reverse split. Upon its effectiveness, the reverse
      split will be effectuated simultaneously for all of the Company&#8217;s Common Stock
      and the exchange ratio will be the same for all shares of the Company&#8217;s common
      stock. The reverse split will affect all of the Shareholders uniformly and
      will
      not affect any shareholder&#8217;s percentage ownership interests in the Company or
      proportionate voting power, except to the extent that the reverse split results
      in any Shareholders owning a fractional share and the resulting nominal change
      of ownership percentage resulting from rounding up.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">The
      Company&#8217;s Common Stock is currently registered under Section 12(g) of the
      Exchange Act and as a result, is subject to periodic reporting and other
      requirements. The Company will continue to be subject to the periodic reporting
      requirements of the Exchange Act. The reverse split is not intended as, and
      will
      not have the effect of, a "going private transaction" covered by Rule 13e-3
      under the Exchange Act.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">TAX
      EFFECTS OF REVERSE SPLIT</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">The
      following discussion summarizing material federal income tax consequences of
      the
      reverse split is based on the Internal Revenue Code of 1986, as amended (the
      "Code"), the applicable Treasury Regulations promulgated thereunder, judicial
      authority and current administrative rulings and practices in effect on the
      date
      this Information Statement was first mailed to Shareholders. This discussion
      does not discuss consequences that may apply to special classes of taxpayers
      (e.g., non-resident aliens, broker-dealers, or insurance companies).
      Shareholders should consult their own tax advisors to determine the particular
      consequences to them.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">The
      receipt of the Common Stock following the effective date of the reverse split,
      solely in exchange for the Common Stock held prior to the reverse split, will
      not generally result in recognition of gain or loss to the shareholders. The
      conversion of seventy shares of the currently issued and outstanding Common
      Stock into one (1) share of new Common Stock should be a </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">tax-free
      transaction under the Code, and the holding period and tax basis of the
      currently issued and outstanding Common Stock will be transferred to the new
      Common Stock received in exchange therefor. Although the issue is not free
      from
      doubt, additional shares received in lieu of fractional shares, including shares
      received as a result of the rounding up of fractional ownership, should be
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">treated
      in the same manner. The adjusted tax basis of a shareholder in the Common Stock
      received after the reverse split will be the same as the adjusted tax basis
      of
      the Common Stock held prior to the reverse split exchanged therefor, and the
      holding period of the Common Stock received after the Reverse Split will include
      the holding period of the Common Stock held prior to the reverse split exchanged
      therefor.</font></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">-16-</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">No
      gain
      or loss will be recognized by the Company as a result of the reverse split.
      The
      Company&#8217;s views regarding the tax consequences of the reverse split are not
      binding upon the Internal Revenue Service or the courts, and there can be no
      assurance that the Internal Revenue Service or the courts would accept the
      positions expressed above.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">This
      discussion should not be considered as tax or investment advice, and the tax
      consequences of the Reverse split may not be the same for all Shareholders.
      Shareholders should consult their own tax advisors to know their individual
      Federal, state, local and foreign tax consequences.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">PROPOSAL
      THREE: CHANGE IN AUTHORIZED CAPITALIZATION</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">The
      Company currently has 1,200,000,000 authorized shares of Common Stock, of which
      926,041,050 shares were outstanding on October 25, 2007. The Company currently
      has 10,000,000 authorized shares of Preferred Stock, of which no shares are
      outstanding.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Franklin-Nevada,
      the newly organized Nevada corporation into which the Company will merge to
      accomplish its change of domicile, if approved by the stockholders, is
      authorized to issue 50,000,000 shares of Common Stock, par value $0.001 and
      10,000,000 shares of Preferred Stock. The effect of the merger will be to change
      the number of authorized common shares which may be issued by the Company from
      1,200,000,000 (pre-reverse split) to 50,000,000. The authorized</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">number
      of
      shares of Preferred Stock will be unchanged.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">If
      the 1
      for 70 reverse stock split were to be applied to the authorized shares, it
      would
      reduce the number of authorized shares to 17,142,857. Since this would not
      be
      sufficient to meet anticipated needs in the immediate future, the Board
      considers it desirable that the Company have the flexibility to issue an
      additional amount of Common Stock without further stockholder action, unless
      otherwise required by law or other regulations. The availability of these
      additional shares will enhance the Company&#8217;s flexibility in connection with any
      possible acquisition or merger, stock splits or dividends, financings and other
      corporate purposes and will allow such shares to be issued without the expense
      and delay of a special stockholders&#8217; meeting, unless such action is required by
      applicable law or rules of any stock exchange on which the Company&#8217;s securities
      may then be listed. The Board may issue the Common Stock for such consideration
      as may be fixed by the Board and for any corporate purpose without further
      action by the stockholders, except as may be required by law. Each share of
      Common Stock has equal dividend rights and participates equally upon
      liquidation. The Company has no obligations or commitments to issue any of
      these
      shares.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">ACTION
      BY
      WRITTEN CONSENT</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Pursuant
      to Section 603 of the California General Corporation Law ("CGCL"), any action
      which may be taken at any meeting of the Shareholders may also be taken without
      a meeting and without prior notice and without a vote, if a consent in writing,
      setting forth the action so taken, is signed by the holders of outstanding
      shares having not less than the minimum number of votes that would be necessary
      to authorize or take such action at a meeting at which all shares entitled
      to
      vote thereon were present and voted (here, a majority of the outstanding shares
      of Common Stock of the Company) and delivered to the Company.</font></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">-17-</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">The
      Company&#8217;s Bylaws provide that the Board of Directors may fix, in advance, a date
      not more than sixty nor less than ten days before the date then fixed for the
      holding of any meeting of the Shareholders of the Company (or before the last
      day on which the consent of the shareholders may be effectively expressed for
      any purpose without a meeting), as the time as of which the</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">shareholders
      entitled to notice of and to vote as such meeting or whose consent is required
      or may be expressed for any purpose, as the case may be, shall be determined,
      and all persons who were Shareholders of record of Common Stock at such time,
      and no others, shall be entitled to notice of and to vote at such meeting or
      to
      express their consent, as the case may be.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">SECURITY
      OWNERSHIP</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">The
      following table sets forth certain information regarding the beneficial
      ownership of the Company&#8217;s Common Stock as of June 30, 2007 by each director and
      executive officer of the Company, each person known to the Company to be the
      beneficial owner of more than 5% of the outstanding Common Stock, and all
      directors and executive officers of the Company as a group. Except as otherwise
      indicated below, each person has sole voting and investment power
      with</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">respect
      to the shares owned, subject to applicable community property laws.</font></div>
    <div><br></div>
    <div align="center">
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          <tr>
            <td valign="top" width="38%" style="BORDER-BOTTOM: black 2px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">Name
                and Address</font></div>
            </td>
            <td width="5%" style="PADDING-BOTTOM: 2px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="top" width="15%" style="BORDER-BOTTOM: black 2px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">Number</font></div>
            </td>
            <td width="5%" style="PADDING-BOTTOM: 2px"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="top" width="15%" style="BORDER-BOTTOM: black 2px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">Percent</font></div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="38%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="top" width="15%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="top" width="15%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
          </tr>
          <tr>
            <td align="left" valign="top" width="38%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">OC
                Kim</font></div>
            </td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="top" width="15%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">104,943,534</font></div>
            </td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="top" width="15%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">11.33%</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="38%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">9823
                Pacific Heights Blvd. Suite J</font></div>
            </td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="top" width="15%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="top" width="15%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
          </tr>
          <tr>
            <td align="left" valign="top" width="38%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">San
                Diego, CA 92121</font></div>
            </td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="top" width="15%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="top" width="15%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
          </tr>
          <tr>
            <td valign="top" width="38%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="top" width="15%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="top" width="15%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
          </tr>
          <tr>
            <td align="left" valign="top" width="38%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">Gary
                Nelson</font></div>
            </td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="top" width="15%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">23,917,500</font></div>
            </td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="top" width="15%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">2.58%</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="38%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">9823
                Pacific Heights Blvd. Suite J</font></div>
            </td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="top" width="15%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="top" width="15%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
          </tr>
          <tr>
            <td align="left" valign="top" width="38%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">San
                Diego, CA&#160;&#160;92121</font></div>
            </td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="top" width="15%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="top" width="15%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
          </tr>
          <tr>
            <td valign="top" width="38%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="top" width="15%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="top" width="15%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
          </tr>
          <tr>
            <td align="left" valign="top" width="38%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">Nick
                Lim</font></div>
            </td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="top" width="15%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">34,174,300</font></div>
            </td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="top" width="15%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">3.80%</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="38%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">9823
                Pacific Heights Blvd. Suite J</font></div>
            </td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="top" width="15%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="top" width="15%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
          </tr>
          <tr>
            <td align="left" valign="top" width="38%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">San
                Diego, CA&#160;&#160;92121</font></div>
            </td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="top" width="15%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="top" width="15%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
          </tr>
          <tr>
            <td valign="top" width="38%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="top" width="15%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="top" width="15%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
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          <tr>
            <td align="left" valign="top" width="38%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">Taejin
                Kim</font></div>
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            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="top" width="15%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">54,968,889
                (1)</font></div>
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            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="top" width="15%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">5.90%</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="38%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">9823
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            </td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="top" width="15%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="top" width="15%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
          </tr>
          <tr>
            <td align="left" valign="top" width="38%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">San
                Diego, CA 92121</font></div>
            </td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="top" width="15%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="top" width="15%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
          </tr>
          <tr>
            <td valign="top" width="38%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="top" width="15%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="top" width="15%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
          </tr>
          <tr>
            <td align="left" valign="top" width="38%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">David
                Kim</font></div>
            </td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="top" width="15%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">88,805,746
                (2)</font></div>
            </td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="top" width="15%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">9.59%</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="38%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">9823
                Pacific Heights Blvd. Suite J</font></div>
            </td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="top" width="15%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="top" width="15%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
          </tr>
          <tr>
            <td align="left" valign="top" width="38%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">San
                Diego, CA&#160;&#160;92121</font></div>
            </td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="top" width="15%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="top" width="15%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
          </tr>
          <tr>
            <td valign="top" width="38%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="top" width="15%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="top" width="15%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
          </tr>
          <tr>
            <td align="left" valign="top" width="38%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">James
                Lee</font></div>
            </td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="top" width="15%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">110,000,000
                (3)</font></div>
            </td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="top" width="15%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">11.87%</font></div>
            </td>
          </tr>
          <tr>
            <td align="left" valign="top" width="38%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">9823
                Pacific Heights Blvd. Suite J</font></div>
            </td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="top" width="15%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="top" width="15%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
          </tr>
          <tr>
            <td align="left" valign="top" width="38%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">San
                Diego, CA 92121</font></div>
            </td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="top" width="15%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="top" width="15%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
          </tr>
          <tr>
            <td valign="top" width="38%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="top" width="15%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="top" width="15%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
          </tr>
          <tr>
            <td align="left" valign="top" width="38%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">All
                directors and executive officers of</font></div>
            </td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="top" width="15%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="top" width="15%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
          </tr>
          <tr>
            <td align="left" valign="top" width="38%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">the
                Company as a group (6 persons)</font></div>
            </td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="top" width="15%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">416,809,969</font></div>
            </td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="top" width="15%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">45.00%</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div>___________________</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">(1)
      Consists of shares owned by iPacific Partners, of which Taejin Kim is an
      officer.</font><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">(2)
      Consists of shares owned by Westech Korea, of which David Kim is an
      officer.</font><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">(3)
      Consists of shares owned by C-Motech Co. Ltd., of which James Lee is an
      officer.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Beneficial
      ownership is determined in accordance with the rules of the Securities and
      Exchange Commission and generally includes voting or investment power with
      respect to securities. Except as indicated by footnote, and subject to community
      property laws where applicable, the persons named in the table above have sole
      voting and investment power with respect to all shares of Common Stock shown
      as
      beneficially owned by them. Shares of Common Stock subject to securities
      currently convertible, or convertible within 60 days after June 30, 2007, are
      deemed to be outstanding in calculating the percentage ownership of a person
      or
      group but are not deemed to be outstanding as to any other person or
      group.</font><br></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">-18-</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><em>Appendix
      A</em></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">AGREEMENT
      AND PLAN OF MERGER</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">THIS
      AGREEMENT AND PLAN OF MERGER, dated as of ________________ ____, 2007 (the
      "Plan"), by and between Franklin Wireless Corp., a California corporation
      ("Franklin-California") and Franklin Wireless Corp., a Nevada corporation and
      wholly-owned subsidiary of Franklin-California ("Franklin-Nevada");</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">RECITALS:</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">A.
      Franklin-California and Franklin-Nevada desire to enter into this Plan providing
      for the merger of Franklin-California into Franklin-Nevada;</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">B.
      The
      authorized capital stock of Franklin-Nevada consists of one hundred fifty
      million (150,000,000) shares of Common Stock, par value $.001 per share (the
      "Franklin-Nevada Shares"), one hundred (100) of which are owned of record and
      beneficially by Franklin-California, and ten million shares of Preferred Stock,
      par value $.001 per share, none of which are issued or outstanding;</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">C.
      The
      authorized capital stock of Franklin-California consists of 1,200,000,000 shares
      of Common Stock, without par value (the "Franklin-California Shares"), of which
      926,040,050 shares are outstanding on the date hereof, and ten million shares
      of
      Preferred Stock, without par value, none of which are issued or outstanding;
      and</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">D.
      The
      merger will have no effect or change on the nature of the business or management
      of the resulting business operating through the surviving
      corporation.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">NOW,
      THEREFORE, in consideration of the premises and the mutual covenants contained
      herein and other valuable consideration, the receipt and adequacy of which
      are
      hereby acknowledged, the parties do hereby covenant and agree as
      follows:</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">SECTION
      1. THE MERGER.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">1.1
      THE
      MERGER. (i) On the Effective Date (as defined below), Franklin-California shall
      be merged (the "Merger") with and into Franklin-Nevada in accordance with the
      California General Corporation Law and the Nevada Revised Statutes, whereupon
      the separate existence of Franklin-California shall cease, and Franklin-Nevada
      shall be the surviving corporation (the "Surviving Corporation".</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">1.2.
      FILING. As soon as practicable after the execution of this Plan,
      Franklin-California and Franklin-Nevada will file a copy of this plan of merger
      with the Secretary of State of the State of Nevada and make all other filings
      or
      recordings required by Nevada and California law in connection with the Merger.
      The Merger shall become effective at such time (the "Effective Date") as the
      certificate of merger is duly filed with the Secretary of State of the State
      of
      Nevada.</font></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">A-1</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">1.3
      EFFECT OF MERGER. From and after the Effective Date, the Surviving Corporation
      shall possess all the rights, powers, privileges and franchises and be subject
      to all of the obligations, liabilities, restrictions and disabilities of
      Franklin-California and Franklin-Nevada, all as provided under the General
      Corporation Law of the State of Nevada.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">1.4.
      COMMON STOCK. On the Effective Date, by virtue of the Merger and without any
      further action on the part of the corporation or their shareholders, (i) each
      share of Common Stock of Franklin-California issued and outstanding immediately
      prior thereto shall be converted into shares of fully paid and nonassesssable
      shares of the Common Stock of Franklin-Nevada at a ratio of 1 for 70, and (ii)
      each share of Common Stock of Franklin-Nevada issued and outstanding immediately
      prior thereto shall be canceled and returned to the status of authorized but
      unissued shares.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">1.5.
      STOCK CERTIFICATES. On and after the Effective Date, all of the outstanding
      certificates which prior to that time represented shares of the Common Stock
      of
      Franklin-California shall be deemed for all purposes to evidence ownership
      of
      and to represent the shares of Franklin-Nevada into which the shares of
      Franklin-California represented by such certificates have been converted as
      herein provided and shall be so registered on the books and records of the
      Surviving Corporation or its transfer agents. The registered owner of any such
      outstanding stock certificate shall, until such certificate shall have been
      surrendered for transfer or conversion or otherwise accounted for to the
      Surviving Corporation or its transfer agent, have and be entitled to exercise
      any voting and other rights with respect to and to receive any dividend and
      other distributions upon the shares of Franklin-Nevada evidenced by such
      outstanding certificate as above provided.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">1.6
      TAX-FREE REORGANIZATION. It is intended by the Parties hereto that the Merger
      shall constitute a tax-free reorganization within the meaning of Section 368
      of
      the Internal Revenue Code of 1986, as amended, and that this Plan shall
      constitute a plan of reorganization within the meaning of the regulations
      thereunder.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">SECTION
      2. THE SURVIVING CORPORATION.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">2.1
      ARTICLES OF INCORPORATION. The Articles of Incorporation of Franklin-Nevada
      shall be the Articles of Incorporation of the Surviving
      Corporation.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">2.2
      BY-LAWS. The By-Laws of Franklin-Nevada in effect on the Effective Date shall
      be
      the By-Laws of the Surviving Corporation until amended in accordance with
      applicable law.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">2.3
      DIRECTORS AND OFFICERS. From and after the Effective Date, until successors
      are
      duly elected or appointed and qualified in accordance with applicable law,
      (i)
      the directors of Franklin-California as of the Effective Date shall be the
      directors of the Surviving Corporation and (ii) the officers of
      Franklin-California as of the Effective Date shall be the officers of the
      Surviving Corporation.</font></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
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        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">A-2</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">SECTION
      3. MISCELLANEOUS</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">3.1
      AMENDMENTS; NO WAIVERS. Any provision of this Plan may be amended or waived
      prior to the Effective Date if, but only if, such amendment or waiver is in
      writing and is signed, in the case of an amendment, by each party to this Plan
      or, in the case of a waiver, by each party against whom the waiver is to be
      effective. No failure or delay by any party in exercising any right, power
      or
      privilege hereunder shall operate as a waiver thereof, nor shall any single
      or
      partial exercise thereof preclude any other or further exercise thereof or
      the
      exercise of any other right, power or privilege. The rights and remedies herein
      provided shall be cumulative and not exclusive of any right or remedies provided
      by law.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">3.2
      SUCCESSORS AND ASSIGNS. The provisions of this Plan shall be binding upon and
      inure to the benefit of the parties hereto and their respective successors
      and
      assigns, provided that no party may assign, delegate or otherwise transfer
      any
      of its rights or obligations under this Plan without the prior written consent
      of the other parties hereto.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">3.3
      GOVERNING LAW. This Plan shall be governed by and construed in accordance with
      the internal laws of the State of Nevada.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">3.4
      ENTIRE AGREEMENT. This Plan constitutes the entire agreement among the Parties
      with respect to the subject matter of this Plan and supersedes all prior
      agreements and understandings, both oral and written, among the parties with
      respect to the subject matter of this Plan.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">3.5
      SEVERABILITY. If any term, provision, covenant or restriction of this Plan
      is
      held by a court of competent jurisdiction or other authority to be invalid,
      void
      or unenforceable, the remainder of the terms, provisions, covenants and
      restrictions of this Plan shall remain in full force and effect and shall in
      no
      way be affected, impaired or invalidated. Upon such a determination, the Parties
      shall negotiate in good faith to modify this Plan so as to effect the original
      intent of the Parties as closely as possible in an acceptable manner so that
      the
      transactions contemplated hereby shall be consummated as originally contemplated
      to the fullest extent possible.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">3.6
      CONDITIONS TO MERGER. The obligations of the Parties to effect the transactions
      contemplated hereby is subject to satisfaction of the following conditions
      (any
      or all of which may be waived by either of the Parties in its sole discretion
      to
      the extent permitted by law): the Merger shall have been approved by the
      shareholders of Franklin-California in accordance with applicable provisions
      of
      the California General Corporation Law; and Franklin-California, as sole
      shareholder of Franklin-Nevada, shall have approved the Merger in accordance
      with the Nevada Revised Statutes, and any and all consents, permits,
      authorizations, approvals, and orders deemed in the sole discretion of
      Franklin-California to be material to consummation of the Merger shall have
      been
      obtained.</font></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">A-3</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">3.7
      ABANDONMENT OR DEFERRAL. At any time before the Effective Date, this Plan may
      be
      terminated and the Merger may be abandoned by the Board of Directors of either
      Franklin-California or Franklin-Nevada or both, notwithstanding the approval
      of
      this Plan by the shareholders of Franklin-Nevada, or the consummation of the
      Merger may be deferred for a reasonable period of time if, in the opinion of
      the
      Boards of Directors of Franklin-California and Franklin-Nevada, such action
      would be in the best interest of such corporations. In the event of termination
      of this Plan, this Plan shall become void and of no effect and there shall
      be no
      liability on the part of either Party or its Board of Directors or shareholders
      with respect thereto or Franklin-Nevada.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">IN
      WITNESS WHEREOF, each of the parties has caused this Plan to be executed by
      an
      authorized signature as of the date first written above.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Franklin
      Wireless Corp.,</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">a
      California corporation</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">By:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">__________________________</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">President</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Franklin
      Wireless Corp.,</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">a
      Nevada
      corporation</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">By:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">__________________________</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">President</font></div>
    <div><br></div>
    <div><br></div>
    <div><br></div><br>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">A-4</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;"><em>Appendix
      B</em></font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">ARTICLES
      OF INCORPORATION</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">OF</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">FRANKLIN
      WIRELESS CORP.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">The
      undersigned, being the original incorporator herein named, for the purpose
      of
      forming a corporation under the general corporation laws of the State of Nevada,
      does make and file these Articles declaring and certifying that the facts herein
      stated are true.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">ARTICLE
      I: NAME</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">The
      name
      of the corporation shall be "Franklin Wireless Corp."</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">ARTICLE
      II: TERM</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">The
      term
      of the corporation shall be perpetual.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">ARTICLE
      III: RESIDENT AGENT &amp; REGISTERED OFFICE</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">The
      registered agent for service of process is GKL Resident Agents/Filings, Inc.,
      1000 East William Street, Suite 204, Carson City, NV 89701. The corporation
      may
      maintain offices for the transaction of any business at such places within
      or
      without the State of Nevada as it may from time to time determine. Corporate
      business of every kind and nature may be conducted, and meetings of directors
      and stockholders held, outside the State of Nevada with the same effect as
      if
      within the State of Nevada.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">ARTICLE
      IV: CAPITAL STOCK</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">The
      amount of the total authorized capital stock of the corporation Fifty Million
      (50,000,000) shares of Common Stock, par value $.001 per share, and Ten Million
      (10,000,000) shares of Preferred Stock, par value $.001 per share. The
      characteristics distinguishing Preferred Stock from Common Stock shall be
      described in a resolution or resolutions of the Board of Directors adopted
      prior
      to issuance of any Preferred Stock. All stock shall be fully paid and
      nonassessable, and shall be issued for such consideration as may be fixed from
      time to time by the Board of Directors. The Board of Directors may issue such
      shares of Common Stock and Preferred Stock in one or more series, at such price
      and in such number of each series as may be stated in the resolution(s) adopted
      by the Board. No stockholder of the corporation shall have preemptive
      rights.</font></div>
    <div><br></div><br>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">B-1</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
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    </div><br>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">ARTICLE
      V: BOARD OF DIRECTORS</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">&#160;&#160;&#160;&#160;&#160;&#160;The
      Board of Directors shall initially be comprised of four members. The specific
      number of directors may from time to time be increased or decreased in
      accordance with the bylaws of the corporation; provided, however, that the
      number of directors shall in no event be less than one nor more than fifteen.
      The initial directors, and their addresses, are as follows:</font></div>
    <div><br></div>
    <div align="center">
      <table cellpadding="0" cellspacing="0" width="52%">

          <tr>
            <td align="left" valign="top" width="22%" style="BORDER-BOTTOM: black 2px solid">
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            </td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td align="left" valign="top" width="25%" style="BORDER-BOTTOM: black 2px solid">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">Address</font></div>
            </td>
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            <td valign="top" width="22%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="top" width="25%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
          </tr>
          <tr>
            <td align="left" valign="top" width="22%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">OC
                Kim</font></div>
            </td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td align="left" valign="top" width="25%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">9823
                Pacific Heights Blvd. Suite J</font></div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="22%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td align="left" valign="top" width="25%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">San
                Diego, CA&#160;&#160;92121</font></div>
            </td>
          </tr>
          <tr>
            <td valign="top" width="22%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td valign="top" width="25%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
          </tr>
          <tr>
            <td align="left" valign="top" width="22%">
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                Nelson</font></div>
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                Pacific Heights Blvd. Suite J</font></div>
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                Kim</font></div>
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                Pacific Heights Blvd. Suite J</font></div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">San
                Diego, CA&#160;&#160;92121</font></div>
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            <td valign="top" width="22%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
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                Kim</font></div>
            </td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td align="left" valign="top" width="25%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">9823
                Pacific Heights Blvd. Suite J</font></div>
            </td>
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          <tr>
            <td valign="top" width="22%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td width="5%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td align="left" valign="top" width="25%">
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">San
                Diego, CA&#160;&#160;92121</font></div>
            </td>
          </tr>

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    </div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">No
      stockholder of the corporation shall be entitled to cumulative voting of his
      or
      her shares for the election of directors or otherwise.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">ARTICLE
      VI: DIRECTORS&#8217; AND OFFICERS&#8217; LIABILITY</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">The
      personal liability of the directors of the Corporation is hereby eliminated
      to
      the fullest extent permitted under the Nevada Revised Statutes, as amended
      or
      supplemented ("NRS"). No amendment or repeal of this Article VI shall deprive
      a
      director of the benefits hereof with respect to any act or omission occurring
      prior to such amendment or repeal.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">ARTICLE
      VII: INDEMNITY</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">The
      Corporation shall indemnify each person who at any time is, or shall have been,
      a director or officer of the Corporation, and is threatened to be or is made
      a
      party to any threatened, pending or completed action, suit or proceeding,
      whether civil, criminal, administrative or investigative, by reason of the
      fact
      that he is, or was, a director or officer of the Corporation, or served at
      the
      request of the Corporation as a director, officer, employee, trustee, or agent
      of another corporation, partnership, joint venture, trust or other enterprise,
      against expenses (including attorneys&#8217; fees), judgments, fines and amounts paid
      in settlement incurred in connection with any such action, suit or proceeding
      to
      the maximum extent permitted by the NRS as the same exists or hereafter may
      be
      amended. The foregoing right of indemnification shall in no way be exclusive
      of
      any other rights of indemnification to which any such director or officer may
      be
      entitled, under any bylaw, agreement, vote of directors or stockholders or
      otherwise.</font></div><br>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; WIDTH: 100%; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">B-2</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
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      <div id="HDR">
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">ARTICLE
      VIII: REPEAL AND CONFLICTS</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">Any
      repeal or modification of Articles VI or VII above approved by the stockholders
      of the corporation shall be prospective only, and shall not adversely affect
      any
      limitation on the liability of a director or officer of the corporation existing
      as of the time of such repeal or modification. In the event of any conflict
      between Articles VI or VII and any other Article of the corporation&#8217;s Articles
      of Incorporation, the terms and provisions of Articles VI or VII shall
      control.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">ARTICLE
      IX: AMENDMENT</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">This
      corporation reserves the right to amend, alter, change or repeal any provision
      contained in these Articles of Incorporation in the manner provided by statute,
      and all rights conferred upon the stockholders are granted subject to the
      foregoing reservation.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">ARTICLE
      X: ADDITIONAL POWERS</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">10.1
      Subject to the limitations and exceptions, if any, contained in the bylaws
      of
      the Corporation (the "Bylaws"), the Bylaws may be adopted, amended or repealed
      by the Board.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">10.2
      Elections of directors need not be by written ballot.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">10.3
      Subject to any applicable requirements of law, the books of the Corporation
      may
      be kept outside the State of Nevada at such location as may be designated by
      the
      Board or in the Bylaws.</font></div>
    <div><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">IN
      WITNESS WHEREOF these Articles of Incorporation have been duly executed
</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">this
      24th
      day of October, 2007.</font></div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div align="center">
      <table bgcolor="white" cellpadding="0" cellspacing="0" width="100%">

          <tr bgcolor="white">
            <td width="50%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">&#160;</font></td>
            <td width="50%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;"><u>/s/
              Robert J.
              Zepfel&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
              </u></font></font>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">Robert
                J. Zepfel, Incorporator</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">500
                Newport Center Drive, Suite 580</font></div>
              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: times new roman;">Newport
                Beach, CA&#160;&#160;92660</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div>&#160;</div>
    <div>&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman;">B-3</font></div>
    <div>
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