Home System Group
EXHIBIT 10.6
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<TYPE>EX-10.6
<SEQUENCE>6
<FILENAME>exh106.htm
<DESCRIPTION>EXHIBIT 10.6
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<title>Home System Group: Exhibit 10.6 - Prepared by TNT Filings Inc.</title>
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<font FACE="Times New Roman"><b>
<p align="right"><font size="2">Exhibit 10.6</font></p>
<p align="center"><font size="2">TERMINATION AND RELEASE AGREEMENT</font></b><font size="2">
</font></p>
<p style="text-indent: 3%" align="justify"><font size="2">THIS TERMINATION AND
RELEASE AGREEMENT dated as of February 7, 2008 (this &quot;Agreement&quot;) is entered
into by and among Home System Group, a Nevada corporation (the &quot;Company&quot;), and
the investors named on the signature page attached hereto (each such investor is
referred to herein as an &quot;Investor&quot; and collectively as the &quot;Investors&quot;). </font>
</p>
<p style="text-indent: 3%" align="justify"><font size="2">WHEREAS, the parties
previously entered into that certain subscription agreement, dated May 23, 2007,
among the Company and the Investors (the &quot;Subscription Agreement&quot;); </font></p>
<p style="text-indent: 3%" align="justify"><font size="2">WHEREAS, the parties
have determined that performance by all parties under the Subscription Agreement
is not feasible without unreasonable expense and delay; and </font></p>
<p ALIGN="JUSTIFY" style="text-indent: 3%"><font size="2">WHEREAS, the parties
desire to terminate the Subscription Agreement and release each other from all
duties, obligations, covenants and representations under or arising out of the
Subscription Agreement and to relinquish all of their respective rights, powers,
privileges, interests and claims under or arising out of the Subscription
Agreement. </font></p>
<p style="text-indent: 3%" align="justify"><font size="2">NOW, THEREFORE, in
consideration of the mutual agreements set forth herein and for such other good
and valuable consideration the receipt and adequacy of which is hereby
acknowledged, the parties hereto, intending to be legally bound, hereby agree as
follows: </font></p>
<p ALIGN="JUSTIFY" style="margin-left: 3%"><font size="2">1.</font></font><font FACE="Arial" size="2">
</font></p>
<p ALIGN="JUSTIFY" style="text-indent: 6%; margin-top: -25.5pt">
<font FACE="Times New Roman" size="2"><u>Rescission, Termination and Release</u>.
The Subscription Agreement is hereby rescinded and terminated and is of no
further force and effect, effective immediately. As a result thereof, the
Subscription Agreement will, effective immediately, be deemed void, </font>
<font FACE="Times New Roman"><font size="2"><i>ab initio</i>, and will impose no
further obligation on the parties thereto, all such obligations to be deemed
terminated effective immediately. </font></p>
<p ALIGN="JUSTIFY" style="margin-left: 3%"><font size="2">2.</font></font><font FACE="Arial" size="2">
</font></p>
<p ALIGN="JUSTIFY" style="text-indent: 6%; margin-top: -25.5pt">
<font FACE="Times New Roman"><font size="2"><u>Return of Consideration</u>. Each
of the Investors hereby renounces any right or claim to receive any assets or
equity ownership in the Company in any form, including in the form of common
stock, pursuant to the Subscription Agreement. To the extent that any such
assets or equity have been delivered or transferred to any of the Investors,
such Investor or Investors, as applicable, shall promptly return, transfer or
convey, without additional consideration, such assets or equity to the Company.
The Company hereby renounces any right or claim to receive any payment or
consideration for assets or equity ownership in the Company pursuant to the
Subscription Agreement. The Company shall pay and return, to each of the
Investors that have made any such payment, any such payment made by such
Investor or Investors, as applicable, or made by third parties on behalf of such
Investor or Investors, as applicable, including any such payments made after the
date hereof. Return of such payments will be made promptly, but in no event
later than ten business days after the later date of the date hereof or the date
of receipt of such payments by the Company, or its agents or assigns, as the
case may be. </font></p>
<p ALIGN="JUSTIFY" style="margin-left: 3%"><font size="2">3.</font></font><font FACE="Arial" size="2">
</font></p>
<p ALIGN="JUSTIFY" style="text-indent: 6%; margin-top: -25.5pt">
<font FACE="Times New Roman"><font size="2"><u>Mutual Release</u>. In
consideration of the mutual promises herein contained and such other good and
valuable consideration, the receipt and adequacy of which is hereby
acknowledged, each party hereto hereby releases and forever discharges each
other party hereto, its officers, directors, employees, agents and
representatives from any and all claims, liabilities, suits and damages arising
or in any way related to the Subscription Agreement and agrees not to commence
any such suit or make any such claim against any other party or its officers,
directors, employees, agents or representatives. Each party hereto represents
and warrants to each other party that it has not made any such claim or suit
prior to the date hereof. </font></p>
</font><hr color="#000000" size="5"><p Style='page-break-before:always'><font FACE="Times New Roman">
<p ALIGN="JUSTIFY" style="margin-left: 3%"><font size="2">4.</font></font><font FACE="Arial" size="2">
</font></p>
<p ALIGN="JUSTIFY" style="text-indent: 6%; margin-top: -25.5pt">
<font FACE="Times New Roman"><font size="2"><u>Non-Disparagement</u>. Each party
on behalf of itself and its principals, directors, employees, officers,
affiliates, licensees, successors and assigns hereby irrevocably and perpetually
agrees not to disparage or make any negative remark of any kind regarding the
relationship between it and any other party or the termination of the
Subscription Agreement without first obtaining the prior written consent of the
other parties hereto, provided (i) each party may inform third parties that the
Subscription Agreement has ended and (ii) the Company may make factual written
disclosure of the termination of the Subscription Agreement in its reports
required to be filed with the United States Securities and Exchange Commission
and oral disclosure to prospective investors consistent with such written
disclosure. </font></p>
<p ALIGN="JUSTIFY" style="margin-left: 3%"><font size="2">5.</font></font><font FACE="Arial" size="2">
</font></p>
<p ALIGN="JUSTIFY" style="text-indent: 6%; margin-top: -25.5pt">
<font FACE="Times New Roman"><font size="2"><u>Warranties</u>. The parties each
represent to each other that each has the full right, power and authority to
enter into and perform this Agreement. The parties each warrant and represent to
the other party that there is no restriction, direct or indirect, on the actions
taken or to be taken by it pursuant to the terms hereof except as provided
herein. </font></p>
<p align="justify" style="margin-left: 3%"><font size="2">6.</font></font><font size="2">
</font></p>
<p align="justify" style="text-indent: 6%; margin-top: -25.5pt">
<font FACE="Times New Roman"><font size="2"><u>Miscellaneous</u>. </font></p>
<p ALIGN="JUSTIFY" style="margin-left: 6%"><font size="2">(a) </font></p>
<p ALIGN="JUSTIFY" style="text-indent: 9%; margin-top: -25.5pt"><font size="2">
<u>Entire Agreement</u>. This Agreement constitutes the entire agreement between
the parties regarding the subject matter hereof and supersedes all prior
understandings, agreements, or representations by or between the parties,
written or oral, to the extent they related in any way to the subject matter
hereof. </font></p>
<p align="justify" style="margin-left: 6%"><font size="2">(b) </font></p>
<p align="justify" style="text-indent: 9%; margin-top: -25.5pt"><font size="2">
<u>Binding Effect</u>. This Agreement shall be binding upon and inure to the
benefit of the parties hereto. </font></p>
<p ALIGN="JUSTIFY" style="margin-left: 6%"><font size="2">(c) </font></p>
<p ALIGN="JUSTIFY" style="text-indent: 9%; margin-top: -25.5pt"><font size="2">
<u>Notices</u>. Any notice provided for herein shall be in writing and shall be
deemed sufficiently given on the earlier to occur of the date of personal
delivery, the date of receipt or three (3) days after posting by overnight
courier or registered or certified mail, postage prepaid, addressed as follows:
</font></p>
</font>
<table CELLSPACING="0" BORDER="0" WIDTH="100%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
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    <td WIDTH="20%"><font size="2">If to the Company:</font></td>
    <td WIDTH="75%"><font size="2">No. 5A, Zuanshi Ge, Fuqiang Yi Tian Ming
    Yuan,</font></td>
  </tr>
  <tr>
    <td WIDTH="20%">&nbsp;</td>
    <td WIDTH="75%"><font size="2">Fu Tian Qu, Shenzhen City, P.R. China</font></td>
  </tr>
  <tr>
    <td WIDTH="20%">&nbsp;</td>
    <td WIDTH="75%"><font size="2">Facsimile No.: (213) 223-2276</font></td>
  </tr>
</table>
<font FACE="Times New Roman">
<p align="justify"><font size="2">If to an Investor, to the respective address
set forth on the counterpart signature page of the Subscription Agreement signed
by such Investor. </font></p>
<p ALIGN="JUSTIFY" style="margin-left: 6%"><font size="2">(d) </font></p>
<p ALIGN="JUSTIFY" style="text-indent: 9%; margin-top: -25.5pt"><font size="2">
<u>Severability</u>. If any provision of this Agreement, or portion hereof,
shall be held invalid or unenforceable by a court of competent jurisdiction,
such invalidity or unenforceability shall attach only to such provision or
portion thereof, and this Agreement shall be carried out as if any such invalid
or unenforceable provision or portion thereof were not contained herein. In
addition, any such invalid or unenforceable provision or portion thereof shall
be deemed, without further action on the part of the parties hereto, modified,
amended or limited to the extent necessary to render the same valid and
enforceable. </font></p>
</font><hr color="#000000" size="5"><p Style='page-break-before:always'><font FACE="Times New Roman">
<p align="justify" style="margin-left: 6%"><font size="2">(e) </font></p>
<p align="justify" style="text-indent: 9%; margin-top: -25.5pt"><font size="2">
<u>Waiver and Amendment</u>. No waiver by a party hereto of a breach or default
hereunder by the other party shall be considered valid unless in writing signed
by such first party, and no such waiver shall be deemed a waiver of any
subsequent breach or default of the same or any other nature. The parties may,
by mutual agreement in writing, amend this Agreement. </font></p>
<p align="justify" style="margin-left: 6%"><font size="2">(f) </font></p>
<p align="justify" style="text-indent: 9%; margin-top: -25.5pt"><font size="2">
<u>Choice of Law</u>. The terms and conditions of this Agreement shall be
governed by and construed in accordance with the laws of the State of New York
without giving effect to the conflicts of law principles thereof as to all
matters. </font></p>
<p align="justify" style="margin-left: 6%"><font size="2">(g) </font></p>
<p align="justify" style="text-indent: 9%; margin-top: -25.5pt"><font size="2">
<u>Assignment</u>. No party may assign its rights or delegate its duties under
this Agreement without the express prior written consent of the other parties.
</font></p>
<p align="justify" style="margin-left: 6%"><font size="2">(h) </font></p>
<p align="justify" style="text-indent: 9%; margin-top: -25.5pt"><font size="2">
<u>Construction</u>. In the event of any ambiguity or question of intent or
interpretation arises, this Agreement will be construed as if drafted jointly by
the parties and no presumption or burdens of proof shall arise favoring any
party by virtue of the authorship of any of the provisions of this Agreement.
</font></p>
<p align="justify" style="margin-left: 6%"><font size="2">(i) </font></p>
<p align="justify" style="text-indent: 9%; margin-top: -25.5pt"><font size="2">
<u>Counterparts</u>. This Agreement may be executed in two or more counterparts,
each of which shall be deemed an original and all of which, together, shall
constitute one and the same instrument. </font></p>
<p align="justify" style="margin-left: 6%"><font size="2">(j) </font></p>
<p align="justify" style="text-indent: 9%; margin-top: -25.5pt"><font size="2">
<u>Titles</u>. The titles of the Sections and paragraphs of this Agreement are
inserted merely for convenience and ease of reference and shall not affect or
modify the meaning of any of the terms, covenants or conditions of this
Agreement. </font></p>
<p align="center"><font size="2">[<i>Signature Page Follows</i>] </font></p>
<hr color="#000000" size="5"><p Style='page-break-before:always'>
<p align="justify" style="text-indent: 3%"><font size="2">IN WITNESS WHEREOF,
the parties hereto have executed this Agreement as of the date first above
written. </font></p>
</font>
<div align="right">
  <table CELLSPACING="0" BORDER="0" WIDTH="40%" cellpadding="0" style="border-collapse: collapse" bordercolor="#111111">
    <tr>
      <td COLSPAN="2" width="394"><b><font size="2">THE COMPANY:</font></b></td>
    </tr>
    <tr>
      <td WIDTH="43">&nbsp;</td>
      <td WIDTH="351">&nbsp;</td>
    </tr>
    <tr>
      <td COLSPAN="2" width="394"><font size="2">HOME SYSTEM GROUP</font></td>
    </tr>
    <tr>
      <td WIDTH="43">&nbsp;</td>
      <td WIDTH="351">&nbsp;</td>
    </tr>
    <tr>
      <td WIDTH="43">&nbsp;</td>
      <td WIDTH="351">&nbsp;</td>
    </tr>
    <tr>
      <td WIDTH="43"><font size="2">By:</font></td>
      <td WIDTH="351" style="border-bottom-style: solid; border-bottom-width: 1">
      <font size="2">/s/ Weiqiu Li</font></td>
    </tr>
    <tr>
      <td WIDTH="43"><font size="2">Name:</font></td>
      <td WIDTH="351" style="border-top-style: solid; border-top-width: 1">
      <font size="2">Weiqiu Li</font></td>
    </tr>
    <tr>
      <td COLSPAN="2" width="394"><font size="2">Title: Chairman and Chief
      Executive Officer</font></td>
    </tr>
    <tr>
      <td WIDTH="43">&nbsp;</td>
      <td WIDTH="351">&nbsp;</td>
    </tr>
    <tr>
      <td WIDTH="43">&nbsp;</td>
      <td WIDTH="351">&nbsp;</td>
    </tr>
    <tr>
      <td COLSPAN="2" width="394"><b><font size="2">INVESTORS:</font></b></td>
    </tr>
    <tr>
      <td WIDTH="43">&nbsp;</td>
      <td WIDTH="351">&nbsp;</td>
    </tr>
    <tr>
      <td WIDTH="43">&nbsp;</td>
      <td WIDTH="351">&nbsp;</td>
    </tr>
    <tr>
      <td COLSPAN="2" width="394"><font size="2">TOTAL GIANT GROUP LIMITED</font></td>
    </tr>
    <tr>
      <td WIDTH="43">&nbsp;</td>
      <td WIDTH="351">&nbsp;</td>
    </tr>
    <tr>
      <td WIDTH="43">&nbsp;</td>
      <td WIDTH="351">&nbsp;</td>
    </tr>
    <tr>
      <td WIDTH="43"><font size="2">By:</font></td>
      <td WIDTH="351" style="border-bottom-style: solid; border-bottom-width: 1">
      <font size="2">/s/ Xiaobin Liu</font></td>
    </tr>
    <tr>
      <td COLSPAN="2" width="394"><font size="2">Name: Xiaobin Liu</font></td>
    </tr>
    <tr>
      <td COLSPAN="2" width="394"><font size="2">Title: President, Sole Director</font></td>
    </tr>
    <tr>
      <td WIDTH="43">&nbsp;</td>
      <td WIDTH="351">&nbsp;</td>
    </tr>
    <tr>
      <td WIDTH="43">&nbsp;</td>
      <td WIDTH="351">&nbsp;</td>
    </tr>
    <tr>
      <td COLSPAN="2" width="394"><font size="2">TOTAL SHINE GROUP LIMITED</font></td>
    </tr>
    <tr>
      <td WIDTH="43">&nbsp;</td>
      <td WIDTH="351">&nbsp;</td>
    </tr>
    <tr>
      <td WIDTH="43">&nbsp;</td>
      <td WIDTH="351">&nbsp;</td>
    </tr>
    <tr>
      <td WIDTH="43"><font size="2">By:</font></td>
      <td WIDTH="351" style="border-bottom-style: solid; border-bottom-width: 1">
      <font size="2">/s/ Chao Zhang</font></td>
    </tr>
    <tr>
      <td COLSPAN="2" width="394"><font size="2">Name: Chao Zhang</font></td>
    </tr>
    <tr>
      <td COLSPAN="2" width="394"><font size="2">Title: President, Sole Director</font></td>
    </tr>
    <tr>
      <td WIDTH="43">&nbsp;</td>
      <td WIDTH="351">&nbsp;</td>
    </tr>
    <tr>
      <td WIDTH="43">&nbsp;</td>
      <td WIDTH="351">&nbsp;</td>
    </tr>
    <tr>
      <td COLSPAN="2" width="394"><font size="2">VICTORY HIGH INVESTMENTS</font></td>
    </tr>
    <tr>
      <td COLSPAN="2" width="394"><font size="2">LIMITED</font></td>
    </tr>
    <tr>
      <td WIDTH="43">&nbsp;</td>
      <td WIDTH="351">&nbsp;</td>
    </tr>
    <tr>
      <td WIDTH="43">&nbsp;</td>
      <td WIDTH="351">&nbsp;</td>
    </tr>
    <tr>
      <td WIDTH="43"><font size="2">By:</font></td>
      <td WIDTH="351" style="border-bottom-style: solid; border-bottom-width: 1">
      <font size="2">Dongshan Wang</font></td>
    </tr>
    <tr>
      <td COLSPAN="2" width="394"><font size="2">Name: Dongshan Wang</font></td>
    </tr>
    <tr>
      <td COLSPAN="2" width="394"><font size="2">Title: President, Sole Director</font></td>
    </tr>
    <tr>
      <td WIDTH="43">&nbsp;</td>
      <td WIDTH="351">&nbsp;</td>
    </tr>
    <tr>
      <td WIDTH="43">&nbsp;</td>
      <td WIDTH="351">&nbsp;</td>
    </tr>
    <tr>
      <td COLSPAN="2" width="394"><font size="2">THINK BIG TRADING LIMITED</font></td>
    </tr>
    <tr>
      <td WIDTH="43">&nbsp;</td>
      <td WIDTH="351">&nbsp;</td>
    </tr>
    <tr>
      <td WIDTH="43">&nbsp;</td>
      <td WIDTH="351">&nbsp;</td>
    </tr>
    <tr>
      <td WIDTH="43"><font size="2">By:</font></td>
      <td WIDTH="351" style="border-bottom-style: solid; border-bottom-width: 1">
      <font size="2">/s/ Hanzhi Mao</font></td>
    </tr>
    <tr>
      <td COLSPAN="2" width="394"><font size="2">Name: Hanzhi Mao</font></td>
    </tr>
    <tr>
      <td COLSPAN="2" width="394"><font size="2">Title: President, Sole Director</font></td>
    </tr>
  </table>
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