Document:

EXHIBIT 10.1

                        ADVISORY AND MANAGEMENT AGREEMENT

      THIS ADVISORY AND MANAGEMENT AGREEMENT ("Agreement") is made this 1st day
of October, 1999 effective the first day the Services (as defined below) were
first rendered by and between NuVen Advisors, Limited Partnership, a Nevada
limited partnership ("Advisor") with offices at 4695 MacArthur Court, Suite 530,
Newport Beach, California 92660 and Phileo Management Company Inc., a Nevada
corporation with its principal offices at 910-510 Burrard St. Vancouver, B.C.
Canada V6C 3A8 ("Client").

      WHEREAS, Advisor and Advisor's personnel have numerous years of experience
in managing and in performing administrative duties for public, privately-held
companies and development stage investment opportunities; and

      WHEREAS, Client desires to retain the Services of Advisor, and Advisor
desires to provide the Services (as defined below) for Client on the terms and
conditions set forth below.

      NOW, THEREFORE, in consideration of the mutual promises, covenants and
agreements contained herein, and for other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, Client and Advisor
agree as follows:

1.   Engagement

     Client hereby engages Advisor to provide Client with merger and acquisition
     advice, and management and general administrative services ("Advisor's
     personnel"), and Advisor accepts such engagement.

2.   Scope of Services to be Provided

     Advisor, subject to the control, direction and supervision of Client's
     Board of Directors, and in conformity with applicable laws, Client's
     Articles of Incorporation, By-laws, registration statements, business plan
     objectives, policies and restrictions, shall provide the following
     Services, excluding the compensation to Advisor's employees or agents
     covered under separate agreements, if any, and their related expenses, as
     provided below:

     (A)  Management of Assets. Advisor will manage the Client's assets
          including, by way of illustration, the evaluation of pertinent
          economic, statistical, financial and other data, and formulation
          and/or implementation of a corporate business plan; and

     (B)  Management of Operations. Advisor will conduct and manage the
          day-to-day operations of the Client including, by way of illustration,
          the furnishing of routine legal, supervisory, accounting and
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          administrative services, and the supervision of the Client's
          administrative personnel, except for services provided by outside
          counsel selected by Client; and

     (C)  Administrative Facilities. Advisor will furnish, if necessary, to
          Client office space, facilities, equipment and personnel adequate to
          provide the Services.

3.   Term

     This Agreement shall have an initial term of five (5) years (the "Initial
     Advisory Period"), with an effective date of October 1, 1999. At the
     conclusion of the Initial Advisory Period, this Agreement will
     automatically be extended on an annual basis (the "Extension Period")
     unless Advisor or Client shall serve written notice on the other party
     terminating the Agreement; provided, however, that Advisor and Client shall
     agree in writing as to Advisor's continuing compensation during any
     Extension Period. Any notice to terminate given hereunder shall be in
     writing and shall be delivered at least ten (10) days prior to the end of
     the Initial Advisory Period or any subsequent Extension Period.

4.   Time and Effort of Advisor

     Advisor shall cause Advisor's personnel to devote that amount of time, as
     necessary, on a weekly basis, to fulfilling Advisor's obligations under
     this Agreement. The particular amount of time may vary from day to day or
     week to week. Advisor unconditionally agrees that Advisor's personnel, or
     his replacement, will at all times, faithfully and to the best of his
     experience, ability, and talents, perform all the duties required of
     Advisor under this Agreement.

5.   Compensation

     Client agrees to pay Advisor the following (the "Consideration") for the
     Services rendered hereunder:

     (A)  Advisory Fee. The Client shall pay to the Advisor, as compensation for
          the Services rendered, facilities furnished and expenses paid by the
          Advisor, a monthly advisory fee equal to Three Thousand Five Hundred
          Dollars ($3,500). Such advisory fee shall be payable for each calendar
          month as soon as practicable after the end of that month.

     (B)  Merger Fee: As to Services provided by Advisor related to the
          introduction of Business Opportunities which results in a Merger
          Transaction or which the Company acquires or otherwise obtain an
          equity interest or interest as a creditor, the Company agrees to pay
          Advisor a transaction fee (the "Merger Fee"). The Merger Fee shall be
          equal to ten percent (10%) of the asset value or investment made in
          the Company (including assumed debt) in such Business Opportunity as a
          result of Advisor's introduction or efforts. One third (1/3) of the
          Merger Fee shall be due and payable upon completion of the definitive
          agreements related to each transaction, and the balance shall be
          issued upon closing;

     (C)  Transaction Fee: As to Services provided by Advisor related to the
          sale of the Company's assets, the Company agrees to pay Advisor a fee
          ("Transaction Fee") equal to five percent (5%) of the net proceeds
          received by the Company.
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     (D)  Options. As incentive to execute this Agreement, Client agrees to
          grant to Advisor an option to purchase shares of Client's common stock
          ("Option Shares") subject to the terms and conditions of the Option
          Agreement attached hereto as Exhibit "A" and incorporated herein by
          reference (the "Option"). Notwithstanding the date of the Option, the
          right of Advisor to exercise such Option will vest to Advisor upon
          execution hereof.

          The parties acknowledge that the consideration for Client's shares to
          be delivered to Advisor shall consist of the Services rendered to
          Client, and that Advisor is accepting payment in Client's shares
          ("Advisory Fee Shares") as an accommodation to Client. Client and
          Advisor acknowledge that Advisor may be considered an affiliate
          subject to Section 16(b) of the Securities Exchange Act of 1934 and,
          in this regard, Client and Advisor agree that for purposes of any
          "profit" computation under Section 16(b) the price paid for the
          Advisory Fee Shares is equal to Two Hundred Fifty Thousand Dollars
          ($250,000).

6.   Role of Advisor

     The Advisor, and any person controlled by or under common control with the
     Advisor, shall be free to render similar services to others and engage in
     other activities, so long as the Services rendered to the Client are not
     impaired.

     Except as otherwise required by the Investment Company Act of 1940 ( the
     "1940 Act"), any of the shareholders, directors, officers and employees of
     the Client may be a shareholder, trustee, director, officer or employee of,
     or be otherwise interested in, the Advisor, and in any person controlled by
     or under common control with the Advisor, and the Advisor and any person
     controlled by or under common control with the Advisor, may have an
     interest in the Client.

     Except as otherwise agreed, in the absence of willful misfeasance, bad
     faith, negligence or reckless or reckless disregard or obligations or
     duties hereunder on the part of the Advisor or Advisor's personnel, Advisor
     shall not be subject to liability to the Client, or to any shareholder of
     the Client, for any act or omission in the course of, or connected with,
     rendering services hereunder or for any losses that may be sustained in the
     purchase, management, holding or sale of any asset of or security issued by
     Client.

7.   Other Services

     Such agreement as to the make-up of the consideration shall be reduced to
     writing prior to the execution and a definitive agreement between Client
     and the prospective purchaser/seller of such Business Opportunity. Failing
     to reach an agreement as to the make-up of such Finder's Fee, Client agrees
     that such fee shall consist solely of cash. In the event that the Finder's
     Fee contains capital stock ("Finders Fee Shares"), unless otherwise
     mutually agreed between the parties in writing, such stock to be issued to
     Advisor shall be valued at fifty percent (50%) of the "Market Price", which
     shall be the average bid price of such stock during the ten (10) business
     days preceding the execution of the definitive agreement relative to such
     Business Combination, or any public announcement related to such
     transaction, whichever is the earlier date.

     If there is no bid price for Client's shares then the book value of such
     stock at the close of the month preceding execution of the definitive
     agreement relating to such Business Combination or any public announcement
     related to such Business Combination shall be considered the Market Price.
<PAGE>
8.   Registration of Client's Shares

     No later than ten (10) days following the date of an event giving use to
     the obligation by Client to issue Advisory Fee Shares, Option Shares or
     Finder Fee Shares, Client will register such shares with the Securities and
     Exchange Commission under a Form S-8 or other applicable registration
     statement. At Client's sole discretion, such shares may be issued prior to
     registration in reliance on exemptions from registration provided by
     Section 4(2) of the Securities Act of 1933 (the "Act"), Regulation D of the
     Act, and applicable state securities laws. Such issuance or reservation
     shall be in reliance on representations and warranties of Advisor set forth
     herein.

9.   Costs and Expenses

     All third party and out-of-pocket expenses, filing fees, copy, and mailing
     expenses incurred by Advisor in the performance of the Services under this
     Agreement are the responsibility of Client, and shall be paid by Client, or
     reimbursed to Advisor, within ten (10) days, of receipt of written notice
     by Advisor.

10.  Place of Services

     The Services provided by Advisor hereunder will be performed primarily at
     Advisor's offices except as otherwise mutually agreed by Advisor and
     Client. It is understood and expected that Advisor may make contacts with
     persons and entities and perform the Services in other locations as deemed
     appropriate by Advisor.

11.  Independent Contractor

     Advisor and Advisor's personnel will act as an independent contractor in
     the performance of its duties under this Agreement. Accordingly, Advisor
     will be responsible for payment of all federal, state, and local taxes on
     compensation paid under this Agreement, including income and social
     security taxes, unemployment insurance, and any other taxes due relative to
     Advisor's personnel, and any and all business license fees as may be
     required.

12.  No Agency Express or Implied

     This Agreement neither expressly nor impliedly creates a relationship of
     principal and agent between Client and Advisor, or Employee and Employer as
     between Advisor's personnel and Client. Neither Advisor's personnel or
     Advisor are authorized to enter into any agreements on behalf of Client.
     Advisor expressly retains the right to approve, in its sole discretion,
     each and every transaction introduced to Client, and to make all final
     decisions with respect to activities undertaken by Advisor or Advisor's
     personnel related to this Agreement.

13.  Termination

     (A)  Termination for Disability. If during the Initial Advisory Period,
          Advisor or Advisor's personnel shall be unable to provide the Services
          as set forth under this Agreement for 120 consecutive business days
          because of illness, accident, or other incapacity, Client shall have
          the right to terminate this Agreement upon written notice to Advisor
          not less than 30 business days after the end of any such 120-day
          period. Termination under this paragraph shall be effective upon
          receipt by Advisor of the written notice.

     (B)  Death. In the event of the death of Advisor's personnel with
          replacement, this Agreement and all obligations hereunder shall
          immediately be terminated.
<PAGE>
     (C)  Termination for Cause. The Client may, at its option, terminate this
          Agreement by giving written notice of termination to Advisor without
          prejudice to any other remedy to which the Client may be entitled
          either at law, in equity, or under this Agreement, if Advisor:

          (i)   Willfully breaches or neglects the duties that Advisor is
                required to perform under the terms of this Agreement;

          (ii)  Fails to promptly comply with and carry out all directives of
                Client's Board of Directors;

          (iii) Commits any dishonest or unlawful act, in the judgment of
                Client's Board of Directors;

          (iv)  Engages in any conduct which disrupts the business of Client or
                any entity affiliated with Client; or

     (D)  Termination Other Than For Cause. This Agreement shall terminate
          immediately on the occurrence of any one of the following events:

          (i)   The occurrence of circumstances, in the judgment of Client's
                Board of Directors, that make it impracticable for Client to
                continue its present line(s) of business;

          (ii)  The decision of and upon notice by Advisor to voluntarily
                terminate this Agreement;

          (iii) If Client files a petition in a court of bankruptcy or is
                adjudicated a bankrupt;

          (iv)  If Client institutes, or has instituted against it any
                bankruptcy proceeding for reorganization for rearrangement of
                its financial affairs;

          (v)   If Client has a receiver of its assets or property appointed
                because of insolvency;

          (vi)  If Client makes a general assignment for the benefit of
                creditors; or

          (vii) If either party otherwise becomes insolvent or unable to timely
                satisfy its obligations in the ordinary course of business.

     (E)  Effect of Termination on Compensation. In the event of the Termination
          Other Than For Cause prior to the completion of the Initial Advisory
          Period, Advisor shall be entitled to the full Compensation, the rights
          under the Options, and any outstanding unpaid portion of the
          Consideration and expenses.

14.  Representations and Warranties of Client

     Client represents and warrants to Advisor that:

     (A)  Corporate Existence. Client is a corporation duly organized, validly
          existing, and in good standing under the laws of the State of Nevada
          with the corporate power to own property and carry on its business as
          it is now being conducted.
<PAGE>
     (B)  Financial Information. Client has or will cause to be delivered
          concurrently with the execution of this Agreement, copies of the
          Disclosure Documents (as defined herein) which accurately set forth
          the financial condition of Client as of the respective dates of such
          documents.

     (C)  No Conflict. This Agreement has been duly executed by Client and the
          execution and performance of this Agreement will not violate, or
          result in a breach of, or constitute a default in any agreement,
          instrument, judgment, decree or order to which Client is a party or to
          which Client is subject, nor will such execution and performance
          constitute a violation or conflict of any fiduciary duty to which
          Client is subject.

     (D)  Full Disclosure. The information concerning Client provided to Advisor
          pursuant to this Agreement is, to the best of Client's knowledge and
          belief, complete and accurate in all material respects and does not
          contain any untrue statement of a material fact or omit to state a
          material fact required to make the statements made, in light of the
          circumstances under which they were made, not misleading.

     (E)  Date of Representations and Warranties. Each of the representations
          and warranties of Client set forth in this Agreement is true and
          correct at and as of the date of execution of this Agreement.

15.  Representations and Warranties of Advisor

     Advisor represents and warrants to Client that:

     (A)  No Conflict. This Agreement has been duly executed by Advisor and the
          execution and performance of this Agreement will not violate, or
          result in a breach of, or constitute a default in any agreement,
          instrument, judgment, decree or order to which Advisor is a party or
          to which Advisor is subject, nor will such execution and performance
          constitute a violation or conflict of any fiduciary duty to which
          Advisor is subject.

     (B)  No Litigation. Advisor is not a defendant, nor plaintiffs against whom
          a counterclaim has been asserted, in any litigation, pending or
          threatened, nor has any material claim been made or asserted against
          Advisor, nor are there any proceedings threatened or pending before
          any United States or other territorial, federal, state or municipal
          government, or any department, board, body or agency thereof,
          involving as of the date hereof, that may entitle a successful
          litigant to a claim against any assets of Advisor, or interfere in any
          way with the duties of Advisor hereunder.

     (C)  Registration and/or Exemption of Client's Shares. Option Shares or
          Finder's Fee Shares may be issued prior to registration in reliance on
          the exemptions from registration provided by Section 4(2) of the
          Securities Act of 1933 (the "Act"), Regulation D, and applicable state
          securities laws. Representations and warranties by Advisor herein will
          be used and relied upon by Client to determine whether any issuance of
          Option Shares may be made to Advisor pursuant to Section 4(2) of the
          Act and Regulation D and applicable state securities laws, and Advisor
          will notify Client immediately of any material changes. With these
          specific understandings, Advisor represents and warrants that:
<PAGE>
          (1) Advisor has been furnished with a copy of Client's most recent
              Annual Report on Form 10-K and all reports or documents required
              to be filed under Sections 13(a), 14(a), and 15(d) of the
              Securities and Exchange Act of 1934, as amended, including but not
              limited to quarterly reports on Form 10-Q, current reports on Form
              8-K, and proxy statements (the "Disclosure Documents"). In
              addition, Advisor has been furnished with a description of
              Client's capital structure and any material changes in Client's
              affairs that may not have been disclosed in the Disclosure
              Documents.

          (2) Advisor has had the opportunity to ask questions and receive
              answers concerning the terms and conditions of the Advisory Fee
              Shares (if any), the Option Shares and/or Finder's Fee Shares to
              be issued and/or reserved for issuance and to obtain any
              additional information which Client possesses or can acquire
              without unreasonable effort or expense that is necessary to verify
              the accuracy of information furnished hereunder.

          (3) By reason of Advisor's knowledge and experience in financial and
              business matters in general, and investments in particular,
              Advisor is capable of evaluating the merits and risks of this
              transaction and in bearing the economic risks of an investment in
              the Advisory Fee Shares (if any), the Option Shares and the
              Finders Fee Shares, if any, and NewCom in general, and fully
              understand the speculative nature of such securities and the
              possibility of such loss.

          (4) The present financial condition of Advisor is such that Advisor is
              not under any present or contemplated future need to dispose of
              any portion of the Advisory Fee Shares (if any), the Option Shares
              or the Finder's Fee Shares, if any, to satisfy an existing or
              contemplated undertaking, need, or indebtedness.

          (5) Advisor is fully aware that the Advisory Fee Shares (if any), any
              Option Shares and Finder's Fee Shares issued to Advisor prior to
              registration are "Restricted Securities" as defined by Rule 144 of
              the Act and that any resale of such securities by Advisor may be
              governed by Rule 144. Advisor is further aware of the specific
              restrictions on resale of such securities contained in Rule 144.

          (6) Advisor will not sell, transfer or otherwise dispose of the
              Advisory Fee Shares (if any), any Option Shares or Finder's Fee
              Shares issued or reserved for issuance prior to registration
              except in compliance with the Act.

          (7) Any and all certificates representing Clients share issued upon
              exercise of options or otherwise prior to registration of such
              shares and any and all securities issued in replacement thereof or
              in exchange therefore, shall bear the following legend:

                 "The shares represented by this certificate have not been
                 registered under the Securities Act of 1933 (the "Act") and are
                 "restricted securities" as that term is defined in Rule 144
                 under the Act. The shares may not be offered for sale, sold, or
                 otherwise transferred except pursuant to an effective
                 Registration Statement under the Act or pursuant to an
                 exemption from registration under the Act, the availability of
                 which is to be established to the satisfaction of NewCom."
<PAGE>
     (D)  Full Disclosure. The information concerning Advisor provided to Client
          pursuant to this Agreement is, to the best of Advisor's knowledge and
          belief, complete and accurate in all material respects and does not
          contain any untrue statement of a material fact or omit to state a
          material fact required to make the statements made, in light of the
          circumstances under which they were made, not misleading.

     (E)  Date of Representations and Warranties. Each of the representations
          and warranties of Advisor set forth in this Agreement is true and
          correct at and as of the date of execution of this Agreement.

16.  Indemnification

     Client and Advisor agree to indemnify, defend and hold each other harmless
     from and against all demands, claims, actions, losses, damages,
     liabilities, costs and expenses, including without limitation, interest,
     penalties and attorneys' fees and expenses asserted against or imposed or
     incurred by either party by reason of or resulting from a breach of any
     representation, warranty, covenant, condition, or agreement of the other
     party to this Agreement.

17.  Specific Performance

     Advisor and Client acknowledge that in the event of a breach of this
     Agreement by either party, money damages would be inadequate and the
     non-breaching party would have no adequate remedy at law. Accordingly, in
     the event of any controversy concerning the rights or obligations under
     this Agreement, such rights or obligations shall be enforceable in a court
     of equity by a decree of specific performance. Such remedy, however, shall
     be cumulative and non-exclusive and shall be in addition to any other
     remedy to which the parties may be entitled.

18.  Miscellaneous

     (A)  Subsequent Events. Advisor and Client each agree to notify the other
          party if, subsequent to the date of this Agreement, either party
          incurs obligations which could compromise its efforts and obligations
          under this Agreement.

     (B)  Amendment. This Agreement may be amended or modified at any time and
          in any manner only by an instrument in writing executed by the parties
          hereto.

     (C)  Further Actions and Assurances. At any time and from time to time,
          each party agrees, at its or their expense, to take actions and to
          execute and deliver documents a may be reasonably necessary to
          effectuate the purposes of this Agreement.

     (D)  Waiver. Any failure of any party to this Agreement to comply with any
          of its obligations, agreements, or conditions hereunder may be waived
          in writing by the party to whom such compliance is owed. The failure
          of any party to this Agreement to enforce at any time any of the
          provisions of this Agreement shall in no way be construed to be a
          waiver of any such provision or a waiver of the right of such party
          thereafter to enforce each and every such provision. No waiver of any
          breach of or non-compliance with this Agreement shall be held to be a
          waiver of any other or subsequent breach or non-compliance.
<PAGE>
     (E)  Assignment. Neither this entire Agreement nor any right created by it
          shall be assignable by either party without the prior written consent
          of the other.

     (F)  Notices. Any notice or other communication required or permitted by
          this Agreement must be in writing and shall be deemed to be properly
          given when delivered in person to an officer of the other party, when
          deposited in the United States mails for transmittal by certified or
          registered mail, postage prepaid, or when deposited with a public
          telegraph company for transmittal, or when sent by facsimile
          transmission charges prepared, provided that the communication is
          addressed:

          (i)  In the case of Client:

               Phileo Management Company Inc.
               910-510 Burrard Street
               Vancouver, B.C.
               Telephone:           (604) 681-5678
               Telefax:             (604) 605-0344

          (ii) In the case of Advisor and Advisor's personnel, to:

               NuVen Advisors Limited Partnership
               4695 MacArthur Court, #530
               Newport Beach, CA 92660
               Telephone:           (949) 833-2094
               Telefax:             (949) 833-7854

          or to such other person or address designated by Client or Advisor to
          receive notice.

     (G)  Headings. The section and subsection headings in this agreement are
          inserted for convenience only and shall not affect in any way the
          meaning or interpretation of this Agreement.

     (H)  Counterparts. This Agreement may be executed simultaneously in two or
          more counterparts, each of which shall be deemed an original, but all
          of which together shall constitute one and the same instrument.

     (I)  Governing Law. Notwithstanding that this Agreement was negotiated and
          is being contracted for outside of the State of Nevada, it shall be
          governed by the laws of the State of Nevada, notwith standing any
          conflict-of-law provision to the contrary.

     (J)  Binding Effect. This Agreement shall be binding upon the parties
          hereto and inure to the benefit of the parties, their respective
          heirs, administrators, executors, successors, and assigns.

     (K)  Entire Agreement. This Agreement contains the entire agreement between
          the parties hereto and supersedes any and all prior agreements,
          arrangements, or understandings between the parties relating to the
          subject matter of this Agreement. No oral understandings, statements,
          promises, or inducements contrary to the terms of this Agreement
          exist. No representations, warranties, covenants, or conditions,
          express or implied, other than as set forth herein, have been made by
          any party.

     (L)  Severability. If any part of this Agreement is deemed to be
          unenforceable the balance of the Agreement shall remain in full force
          and effect.
<PAGE>
     (M)  Facsimile Counterparts. A facsimile, telecopy, or other reproduction
          of this Agreement may be executed by one or more parties hereto and
          such executed copy may be delivered by facsimile of similar
          instantaneous electronic transmission device pursuant to which the
          signature of or on behalf of such party can be seen, and such
          execution and delivery shall be considered valid, binding and
          effective for all purposes. At the request of any party hereto, all
          parties agree to execute an original of this Agreement as well as any
          facsimile, telecopy or other reproduction hereof.

     (N)  Termination of Any Prior Agreements. Effective the date hereof, all
          prior rights of Advisor relating to the accrual or payment of any form
          of compensation or other benefits from Client based upon any
          agreements other than this Agreement, whether written or oral, entered
          into prior to the date hereof, are hereby terminated.

     (O)  Consolidation or Merger. Subject to the provisions hereof, in the
          event of a sale of the stock, or substantially all of the stock of
          Client, or consolidation or merger of Client with or into another
          corporation or entity, or the sale of substantially all of the
          operating assets of Client to another corporation, entity or
          individual, Client may assign its rights and obligations under this
          Agreement to its successor-in-interest and such successor-in-interest
          shall be deemed to have acquired all rights and assumed all
          obligations of Client hereunder; provided, however, that in no event
          shall the duties and Services of Advisor provided for in Paragraph 2
          hereof, or the responsibilities, authority or powers commensurate
          therewith, change in any material respect as a result of such sale of
          stock, consolidation, merger or sale of assets.

     (P)  Time is of the Essence. Time is of the essence of this Agreement and
          of each and every provision hereof.

      IN WITNESS WHEREOF, the parties have executed this Agreement on the date
above written.

                                    "Advisor"
                                    NuVen Advisors Limited Partnership
                                    a Nevada Limited Partnership

                                    By:    /s/   Fred G. Luke
                                    Name:        Fred G. Luke
                                    Title:       President

                                    "Client"
                                    Phileo Management Company,  Inc.
                                    a Nevada corporation

                                    By:    /s/    David Lo
                                    Name:         David Lo
                                    Title:        President
<PAGE>

                                   EXHIBIT "A"

                                     to the
                        Advisory and Management Agreement
                              dated October 1, 1999

                                   THE OPTION
<PAGE>

                                OPTION AGREEMENT

      THIS OPTION AGREEMENT ("Agreement") is entered into and effective the 1st
day of October 1999, by and between NuVen Advisors Limited Partnership, a Nevada
limited partnership ("NuVen"), and Phileo Management Company, Inc., a Nevada
corporation with offices 910-510 Burrard St. Vancouver, B.C. Canada,V6C-3A8 (the
"Company").

      WHEREAS, the Company proposes to issue to NuVen options to purchase shares
of its common stock (the "Common Stock") in connection with the Company's
engagement of NuVen pursuant to the Advisory Agreement of even date between the
Company and NuVen, a copy of which is attached hereto as Exhibit "A" and
incorporated by reference herein (the "Advisory Agreement"); and,

      WHEREAS, to induce NuVen to execute the Advisory Agreement the Company
hereby grants NuVen an option to purchase shares of the Company's Common Stock
subject to the terms and conditions set forth below.

      NOW, THEREFORE, for and in consideration of the mutual promises herein,
and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, and subject to the terms and conditions set forth
below, NuVen and the Company agree as follows:

1.   The Option

     The Company hereby grants to NuVen (hereinafter "Holder") an option (the
     "Option") to acquire Five Hundred Thousand (500,000) shares of the
     Company's Common Stock, subject to adjustment as set forth herein (such
     shares, as adjusted, are hereinafter referred to as the "Option Shares"),
     at a purchase price of $.50 per share ("Option Price").

2.   Term and Exercise of Option

     A.   Term of Option. Subject to the terms of this Agreement, Holder shall
          have the right to exercise the Option in whole or in part, commencing
          the date hereof through the close of business on January 1, 2005.

     B.   Exercise of the Option. The Option may be exercised upon written
          notice to the Company at its principal office setting out the number
          of Option Shares to be purchased, together with payment of the Option
          Price

     C.   Issuance of Option Shares. Upon such notice of exercise and payment of
          the Option Price, the Company shall issue and cause to be delivered
          within five (5) business days following the written order of Holder,
          or its successor as provided for herein, and in such name or names as
          the Holder may designate, a certificate or certificates for the number
          of Option Shares so purchased. The rights of purchase represented by
          the Option shall be exercisable, at the election of the Holder
          thereof, either in full or from time to time in part, and in the event
          the Option is exercised in respect of less than all of the Option
          Shares purchasable on such exercise at any time prior to the date of
          expiration hereof, the remaining Option Shares shall continue to be
          subject to Adjustment as set forth in paragraph 4 hereof. The Company
          irrevocably agrees to reconstitute the Option Shares as provided
          herein.
<PAGE>
3.   Reservation of Option Shares

     The Company shall at all times keep reserved and available, out of its
     authorized Common Stock, such number of shares of Common Stock as shall be
     sufficient to provide for the exercise of the rights represented by this
     Agreement. The transfer agent for the Common Stock and any successor
     transfer agent for any shares of the Company's capital stock issuable upon
     the exercise of any of such rights of purchase, will be irrevocably
     authorized and directed at all times to reserve such number of shares as
     shall be requisite for such purpose. The Company will cause a copy of this
     Agreement to be kept on file with the transfer agent or its successors.

4.   Adjustment of Option Shares

     The number of Option Shares purchasable pursuant to this Agreement shall be
     subject to adjustment from time to time upon the happening of certain
     events, as follows:

     A.   Adjustment for Recapitalization. Subject to paragraph 4.B below, in
          the event the Company shall (a) subdivide its outstanding shares of
          Common Stock, or (b) issue or convert by a reclassification or
          recapitalization of its shares of Common Stock into, for, or with
          other securities (a "Recapitalization"), the number of Option Shares
          purchasable hereunder immediately following such Recapitalization
          shall be adjusted so that the Holder shall be entitled to receive the
          kind and number of Option Shares or other securities of the Company
          measured as a percentage of the total issued and outstanding shares of
          the Company's Common Stock as of the hereof which it would have been
          entitled to receive immediately preceding such Recapitalization, had
          such Option been exercised immediately prior to the happening of such
          event or any record date with respect thereto. An adjustment made
          pursuant to this paragraph shall be calculated and effected taking
          into account the formula set forth in paragraph 4.B. below and shall
          become effective immediately after the effective date of such event
          retroactive to the effective date.

     B.   Adjustment of the Exercise Price and Number of Option Shares. In the
          event of any change in the Company's Common Stock by reason of a
          reverse stock split, the number and Option Price of the shares subject
          to this Option shall not change or be adjusted.

     C.   Preservation of Purchase Rights Under Consolidation. Subject to
          paragraph 4.B above, in case of any Recapitalization or any other
          consolidation of the Company with or merger of the Company into
          another corporation, or in case of any sale or conveyance to another
          corporation of the property of the Company as an entirety or
          substantially as an entirety, the Company shall prior to the closing
          of such transaction, cause such successor or purchasing corporation,
          as the case may be, to acknowledge and accept responsibility for the
          Company's obligations hereunder and to grant the Holder the right
          thereafter upon payment of the Option Price to purchase the kind and
          amount of shares and other securities and property which he would have
          owned or have been entitled to receive
<PAGE>
          after the happening of such consolidation, merger, sale or conveyance.
          The provisions of this paragraph shall similarly apply to successive
          consolidations, mergers, sales or conveyances.

          D. Notice of Adjustment. Whenever the number of Option Shares
          purchasable hereunder is adjusted, as herein provided, the Company
          shall mail by first class mail, postage prepaid, to the Holder notice
          of such adjustment or adjustments, and shall deliver to Holder setting
          forth the adjusted number of Option Shares purchasable and a brief
          statement of the facts requiring such adjustment, including the
          computation by which such adjustment was made.

5.   Failure to Deliver Option Shares Constitutes Breach Under
     Advisory Agreement

     Failure by the Company, for any reason, to deliver the certificates
     representing any shares purchased pursuant to this Option within the five
     (5) business day period set forth in paragraph 2 above, or the placement of
     a Stop Transfer order by the Company on any Option Shares once issued,
     shall constitute a "Breach" under the Advisory Agreement and, for the
     purpose of determining the terms of this Agreement, shall automatically
     toll the expiration of this Agreement for a period of time equal to the
     delay in delivering the subject shares or term of the Stop Transfer order.

6.   Assignment

     The Option represented by this Agreement may only be assigned or
     transferred by NuVen to an Affiliate or subsidiary, or as the result of a
     corporate reorganization or recapitalization. For the purpose of this
     Option the term "Affiliate" shall be defined as a person or enterprise that
     directly, or indirectly through one or more intermediaries, controls, or is
     controlled by, or is under common control with the Company otherwise, this
     Agreement and the rights hereunder shall not be assigned by either party
     hereto.

7.   Counterparts

     A facsimile, telecopy or other reproduction of this instrument may be
     executed by one or more parties hereto and such executed copy may be
     delivered by facsimile or similar instantaneous electronic transmission
     device pursuant to which the signature of or on behalf of such party can be
     seen, and such execution and delivery shall be considered valid, binding
     and effective for all purposes. At the request of any party hereto, all
     parties agree to execute an original of this instrument as well as any
     facsimile, telecopy or other reproduction hereof.

8.   Further Documentation

     Each party hereto agrees to execute such additional instruments and take
     such action as may be reasonably requested by the other party to effect the
     transaction, or otherwise to carry out the intent and purposes of this
     Agreement.
<PAGE>
9.   Notices

     All notices and other communications hereunder shall be in writing and
     shall be sent by prepaid first class mail to the parties at the following
     addresses, as amended by the parties with written notice to the other:

     To NuVen:         NuVen Advisors Limited Partnership
                       4695 MacArthur Court, Suite 530
                       Newport Beach, California  92660
                       Telephone:       (949) 833-2094
                       Telefax:         (949) 833-7854

     With copy to:     Archer & Weed
                       4695 MacArthur Court, Suite 530
                       Newport Beach, California  92660
                       Telephone:       (714) 833-5363
                       Facsimile:       (714) 833-5384

     To the Company:   Phileo Management Company, Inc.
                       910-510 Burrard Street
                       Vancouver, B.C.
                       Telephone:       (604) 681-5678
                       Facsimile:       (604) 605-0344

10.  Counterparts

     This Agreement may be executed simultaneously in two or more counterparts,
     each of which shall be deemed an original, but all of which together shall
     constitute one and the same instrument.

11.  Governing Law

     This Agreement was negotiated, and shall be governed by the laws of Nevada
     notwithstanding any conflict-of-law provision to the contrary.

12.  Entire Agreement

     This Agreement sets forth the entire understanding between the parties
     hereto and no other prior written or oral statement or agreement shall be
     recognized or enforced.

13.  Severability

     If a court of competent jurisdiction determines that any clause or
     provision of this Agreement is invalid, illegal or unenforceable, the other
     clauses and provisions of the Agreement shall remain in full force and
     effect and the clauses and provision which are determined to be void,
     illegal or unenforceable shall be limited so that they shall remain in
     effect to the extent permissible by law.
<PAGE>
14.  Amendment or Waiver

     Every right and remedy provided herein shall be cumulative with every other
     right and remedy, whether conferred herein, at law, or in equity, and may
     be enforced concurrently herewith, and no waiver by any party of the
     performance of any obligation by the other shall be construed as a waiver
     of the same or any other default then, theretofore, or thereafter occurring
     or existing. At any time prior to Closing, this Agreement may be amended by
     a writing signed by all parties hereto.

15.  Headings

     The section and subsection headings in this Agreement are inserted for
     convenience only and shall not affect in any way the meaning or
     interpretation of this Agreement.

     IN WITNESS WHEREOF, the parties have executed this Agreement the day and
year first written above.

                                           "NuVen"
                                           NuVen Advisors Limited Partnership

                                           By: /s/  Fred G. Luke
                                               Fred G. Luke, General Partner

                                           The "Company"
                                           Phileo Management Company, Inc.

                                           By: /s/  David Lo
                                                 David Lo, PresidentEXHIBIT 10.2

                            SHARE EXCHANGE AGREEMENT

THIS SHARE EXCHANGE AGREEMENT               is made on this January 30, 1999

BETWEEN:

(1)  PHILEO MANAGEMENT COMPANY INC. ("Purchaser")

AND :

(2)  The SHAREHOLDERS set out in the Schedule hereto (the "Shareholders").

WHEREAS :

     (A)  By the Closing Date, the Shareholders shall collectively be the
          ultimate registered and beneficial shareholders of the Shares in the
          Target Co.

     (B)  Target Co. collectively hold the Relevant Percentage of the Chinese
          Joint Venture.

     (C)  The Chinese Joint Venture holds relevant approvals to build and
          operate the Project in three Phases comprising a five (5) trunk fiber
          optic network in the Guangdong Province as follows:-
<TABLE>
<CAPTION>
<S>   <C>         <C>           <C>              <C>              <C>
      Phase       Location      Length           Completion       No. of Cores

      Phase I     Guangzhou     168 km            01.1997             36
                  - Shenzhen

      Phase II    Guangzhou     220 km            12.1997             40
                  - Zhuhai

      Phase III   Guangzhou     2,451km           08.1999             16
                  - Shantou                     (scheduled)
                  - Zhangjiang
                  - Shaoguan
                  (circular loop)
</TABLE>
     (D)  The Purchaser desires to acquire and the Shareholders desires to sell
          all the Shares for a purchase price of $60,000,000 (the "Purchase
          Price") subject to and on terms and conditions of this Agreement;

     (E)  The Purchaser is non-reporting company whose shares of common stock
          are traded on the NASD OTC Bulletin Board.
<PAGE>
NOW, THEREFORE :

In consideration of the mutual covenants and agreements set forth in this
Agreement, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as
follows.

ARTICLE I

Definitions

1.1   Definitions.

      (a) As used in this Agreement, the following defined terms shall have the
          meanings indicated below unless the context otherwise requires:

          "Actions or Proceedings" means any action, suit, proceeding,
          arbitration or Governmental or Regulatory Authority investigation or
          audit.

          "Affiliate" means, as applied to any Person, (i) any other Person
          directly or indirectly controlling, controlled by or under common
          control with, that Person, (ii) any other Person that owns or controls
          five percent (5%) or more of any class of equity securities (including
          any equity securities issuable upon the exercise of any Option) of
          that Person or any of its Affiliates, or (iii) any member, director,
          partner, officer, agent, employee or relative of such Person. For the
          purposes of this definition, "control" (including with correlative
          meanings, the terms "controlling," "controlled by", and "under common
          control with") as applied to any Person, means the possession,
          directly or indirectly, of the power to direct or cause the direction
          of the management and policies of that Person, whether through
          ownership of voting securities or by contract or otherwise.

          "Agreement" means this Share Exchange Agreement, the Exhibits and the
          Schedule and the certificates delivered in connection herewith, as the
          same may be amended, modified or restated from time to time in
          accordance with the terms hereof.

          "Assets and Properties" of any Person means all assets and properties
          of every kind, nature, character and description (whether real,
          personal or mixed, whether tangible or intangible, whether absolute,
          accrued, contingent, fixed or otherwise and wherever situated),
          including the goodwill related thereto, operated, owned or leased by
          such Person, including, without limitation, cash, cash equivalents,
          accounts and notes receivable, chattel paper, documents, instruments,
          general intangibles, real estate, equipment, inventory, goods and
          Intellectual Property.

          "Books and Records" means all files, documents, instruments, papers,
          books and records relating to the Business, Target Co. or the
          Subsidiaries, including without limitation financial statements, Tax
          Returns and related work papers and letters from accountants, budgets,
          pricing guidelines, ledgers, journals, deeds, title policies, minute
          books, stock certificates and books, stock transfer ledgers,
          Contracts, Permits, customer lists, computer files and programs,
          retrieval programs, operating data and plans and environmental studies
          and plans.
<PAGE>
          "Business Combination" means with respect to any Person any (i)
          merger, consolidation or combination to which such Person is a party,
          (ii) any sale, issuance dividend, split or other disposition of any
          capital stock or other equity interests (or any security or loan
          convertible into or exchangeable for such capital stock or other
          equity interests) of such Person, (iii) any tender offer (including
          without limitation a self-tender), exchange offer, recapitalization,
          liquidation, dissolution or similar transaction, (iv) any sale,
          dividend or other disposition of all or a material portion of the
          Assets and Properties of such Person or (v) the entering into of any
          agreement or understanding, or the granting of any rights or options,
          with respect to any of the foregoing.

          "Business Day" means a day other than Saturday, Sunday or any day on
          which banks located in the State of California and Guangzhou, China
          are authorized or obligated to close.

          "Business and/or Condition of Target Co." means the Business,
          condition (financial or otherwise), results of operations, Assets and
          Properties of Target Co. and the Subsidiaries taken as a whole.

          "China" means the People Republic of China.

          "Chinese Joint Venture" means the sino-foreign joint venture to be
          established in accordance with PRC laws owning the Project.

          "Closing Date" means 31st March 1999 or such earlier or later date
          acceptable to the Purchasers and the Shareholders.

          "Code" means the Internal Revenue Code of 1986, as amended, and the
          rules and regulations promulgated thereunder.

          "Contract" means any agreement, lease, license, evidence of
          Indebtedness, mortgage, indenture, security agreement or other
          contract or other commitment (whether written or oral).

          "Exchange Act" means the Securities Exchange Act of 1934, as amended,
          and the rules and regulations of the SEC thereunder.

          "GAAP" means United States generally accepted accounting principles,
          consistently applied throughout the specified period and in all prior
          comparable periods.

          "Governmental or Regulatory Authority" means any court, tribunal,
          authority, agency, commission, official or other instrumentality of
          the United States, any foreign country or any domestic or foreign
          state, county, city or other political subdivision, any arbitrator,
          tribunal or panel of arbitrators and, shall include, without
          limitation, any stock exchange, quotation service and the National
          Association of Securities Dealers.
<PAGE>
          "Indebtedness" means, as to any Person: (i) all obligations, whether
          or not contingent, of such Person for borrowed money (including,
          without limitation, reimbursement and all other obligations with
          respect to surety bonds, letters of credit and bankers' acceptances,
          whether or not matured), (ii) all obligations of such Person evidenced
          by notes, bonds, debentures or similar instruments, (iii) all
          obligations of such Person representing the balance of deferred
          purchase price of property or services, except trade accounts payable
          and accrued commercial or trade liabilities arising in the ordinary
          course of business, (iv) all interest rate and currency swaps, caps,
          collars and similar agreements or hedging devices under which payments
          are obligated to be made by such Person, whether periodically or upon
          the happening of a contingency, (v) all indebtedness created or
          arising under any conditional sale or other title retention agreement
          with respect to property acquired by such Person (even though the
          rights and remedies of the seller or lender under such agreement in
          the event of default are limited to repossession or sale of such
          property), (vi) all obligations of such Person under leases which have
          been or should be, in accordance with GAAP, recorded as capital
          leases, (vii) all indebtedness secured by any Lien (other than Liens
          in favor of lessors under leases other than leases included in clause
          (vii)) on any property or asset owned or held by that Person
          regardless of whether the indebtedness secured thereby shall have been
          assumed by that Person or is non-recourse to the credit of that
          Person, and (viii) all Indebtedness of any other Person referred to in
          clauses (i) through (vii) above, guaranteed, directly or indirectly,
          by that Person.

          "Intellectual Property" means all patents and patent rights,
          trademarks and trademark rights, trade names and trade name rights,
          service marks and service mark rights, service names and service name
          rights, brand names, inventions, processes, formulae, copyrights and
          copyright rights, trade dress, business and product names, logos,
          slogans, trade secrets, industrial models, processes, designs,
          methodologies, computer programs (including all source codes) and
          related documentation, technical information, manufacturing,
          engineering and technical drawings, know-how and all pending
          applications for and registrations of patents, trademarks, service
          marks and copyrights.

          "IRS" means the United States Internal Revenue Service.

          "Laws" means all laws, statutes, rules, regulations, ordinances and
          other pronouncements having the effect of law of the United States,
          any foreign country or any domestic or foreign state, county, city or
          other political subdivision or of any Governmental or Regulatory
          Authority.

          "Liabilities" means all Indebtedness, obligations and other
          liabilities of a Person (whether absolute, accrued, contingent, known
          or unknown, fixed or otherwise, or whether due or to become due).

          "Liens" means any mortgage, pledge, assessment, security interest,
          lease, lien, adverse claim, levy, charge or other encumbrance of any
          kind, or any conditional sale Contract, title retention Contract or
          Contract committing to grant any of the foregoing.
<PAGE>
          "Loss" means any and all damages, fines, fees, penalties,
          deficiencies, losses and expenses, including, without limitation,
          interest, reasonable expenses of investigation, court costs,
          reasonable fees and expenses of attorneys, accountants and other
          experts or other expenses of litigation or other proceedings or of any
          claim, default or assessment (such fees and expenses to include
          without limitation, all fees and expenses, including, without
          limitation, fees and expenses of attorneys, incurred in connection
          with (i) the investigation or defense of any third party claims or
          (ii) asserting or disputing any rights under this Agreement against
          any party hereto or otherwise).

          "Option" with respect to any Person means any security, right,
          subscription, warrant, option, "phantom" stock right or other Contract
          that gives the right to (i) purchase or otherwise receive or be issued
          any shares of capital stock or other equity interests of such Person
          or any security of any kind convertible into or exchangeable or
          exercisable for any shares of capital stock or other equity interest
          of such Person or (ii) receive any benefits or rights similar to any
          rights enjoyed by or accruing to the holder of shares of capital stock
          or other equity interest of such Person, including, without
          limitation, any rights to participate in the equity, income or
          election of directors, management committee members or officers of
          such Person.

          "Order" means any writ, judgment, decree, injunction or similar order
          of any Governmental or Regulatory Authority (in each such case whether
          preliminary or final).

          "Permits" means all licenses, permits, certificates of authority,
          authorizations, approvals, registrations, franchises and similar
          consents granted or issued by any Governmental or Regulatory
          Authority.

          "Permitted Lien" means (i) any Lien for Taxes, governmental, charges
          or levies not yet due or delinquent or being contested in good faith
          by appropriate proceedings for which adequate reserves have been
          established in accordance with GAAP, (ii) the Liens set forth in any
          Disclosure Schedule, (iii) any minor imperfection of title, easements,
          rights of way or similar Lien as normally exist with respect to
          property similar in character to the property affected thereby and
          which individually or in the aggregate with other such Liens does not
          impair the value or marketability of the property subject to such Lien
          or interfere with the use of such property in the conduct of the
          business of the Company or any Subsidiary and which do not secure
          obligations for money borrowed and (iv) Liens imposed by any law, such
<PAGE>
          as mechanic's, materialman's, landlord's, warehouseman's and carrier's
          Liens, securing obligations incurred in the ordinary course of
          business which are not yet overdue or which are being diligently
          contested in good faith by appropriate proceedings and, with respect
          to such obligations which are being contested, for which the Company
          has set aside adequate reserves.

          "Person" means any individual, corporation, joint stock corporation,
          limited liability company or partnership, general partnership, limited
          partnership, proprietorship, joint venture, other business
          organization, trust, union, association or Governmental or Regulatory
          Authority.

          "Project" means the Project as referred to in Recital (C) hereof,
          which Project is valued with RMB1,100,000,000 in accordance with the
          Valuation Report.

          "Projections" means the projections for the Chinese Joint Venture
          assets, results of operations, assets, liabilities, cash flow and
          other information supplied by the Shareholders.

          "Purchase Price" has the meaning ascribed to it in Section 2.1.

          "Purchaser" has the meaning ascribed to it in the forepart of this
          Agreement.

          "Relevant Percentage" means sixty-six per cent (66%)

          "Securities Act" means the Securities Act of 1933, as amended, and the
          rules and regulations thereunder.

          "Shares" means the entire issued and paid up share capital of Target
          Co. owned by the respective Shareholders as registered and beneficial
          shareholder as set out in the Schedule hereto.

          "Subsidiary" means any Person in which Target Co., directly or
          indirectly through Subsidiaries or otherwise, beneficially owns more
          than fifteen percent (15%) of either the equity interests in, or the
          voting control of, such Person.

          "Target Co." means collectively New Communication International
          Enterprises Ltd. and Magnum Enterprises Group Limited, both companies
          incorporated under the laws of the British Virgin Islands with limited
          liability and where the context requires any of them.

          "Tax" or "Taxes" means all federal, state, local or foreign net or
          gross income, gross receipts, net proceeds, sales, use, ad valorem,
          value added, franchise, bank shares, withholding, payroll, employment,
          excise, property, alternative or add-on minimum, environmental or
          other taxes, assessments, duties, fees, levies or other governmental
          charges of any nature whatever, whether disputed or not, together with
          any interest, penalties, additions to tax or additional amounts with
          respect thereto.

          "Tax Returns" means any returns, reports or statements (including any
          information returns) required to be filed for purposes of a particular
          Tax.
<PAGE>
          "Taxing Authority" means any governmental agency, board, bureau, body,
          department or authority of any United States Federal, state or local
          jurisdiction or any foreign jurisdiction, having or purporting to
          exercise jurisdiction with respect to any Tax.

          "Transfer Taxes" means sales, use, transfer, real property transfer,
          recording, gains, stock transfer and other similar taxes and fees.

          "Valuation" Report means the Valuation Report prepared subject to
          terms and conditions set out therein by Arthur Anderson dated as of
          April 3rd, 1998

     (b)  Unless the context of this Agreement otherwise requires, (i) words of
          any gender include each other gender, (ii) words using the singular or
          plural number also include the plural or singular number,
          respectively, (iii) the terms "hereof," "herein," "hereby" and
          derivative or similar words refer to this entire Agreement, (iv) the
          terms "Article" or "Section" refer to the specified Article or Section
          of this Agreement, and (v) the phrases "ordinary course of business"
          and "ordinary course of business consistent with past practice" refer
          to the business and practice of Target Co. or a Subsidiary. All
          accounting terms used herein and not expressly defined herein shall
          have the meanings given to them under GAAP.

     (c)  When used herein, the phrase "to the knowledge of " any Person, "to
          the best knowledge of " any Person or any similar phrase, means (i)
          with respect to any Person who is an individual, the actual knowledge
          of such Person, and (ii) with respect to any other Person, the actual
          knowledge of the directors, officers, members, general partners and
          other similar Person in a similar position or having similar powers
          and duties; and, in the case of each of (i) and (ii), the knowledge of
          facts that such individuals should have after reasonable inquiry.

ARTICLE II

Sale of Purchased Interests; Closing

2.1      Sale and Purchase.  On the terms and subject to the conditions of this
         Agreement,

         (a)  At the Closing, Purchaser shall purchase from the Shareholders,
              free and clear of all Liens, all of the Shares.

         (b)  The Purchase Price shall be Sixty Million Dollars (US$ 60,000,000)
              payable at the Closing as set forth below.

         (c)  The Purchase Price shall consist of the following payments to the
              Shareholders distributed in accordance with the Schedule hereto:-

              (i)   Forty-Two Million (42,000,000) shares of Purchaser
                    common stock; and

              (ii)  Eighteen Million (18,000,000) shares of Purchaser
                    preferred stock.

         (d)  The details of the preferred stocks are as follows:-

              (i)   The preferred stocks shall carry no voting rights and no
                    dividend or other rights.  It shall only carry rights of
                    conversion to common stocks to rank pari passu to other
                    common stocks detailed below.

              (ii)  The conversion of preferred stocks may take place by written
                    notice at the option of the persons entitled to the
                    preferred stocks at any time during the period commencing]
                    1st January 2000 (or such later date as the audited
                    financial statements of the Purchaser for year 1999 shall
                    have been prepared) to 31st March 2003 (or 30 days after
                    such later date as the audited financial statements of the
                    Purchaser for year 2002 shall have been prepared);
<PAGE>

             (iii)  The conversion ratio of the preferred stocks to common
                    stocks shall be based on the gross income (i.e.,
                    performance) of the Purchaser as set out in the latest
                    audited financial statements prior to the exercise of the
                    right of conversion. The conversion ratio is as follows:-

                    (A)   for gross income of the Purchaser of over
                          US$10 million but under US$15 million:  1 preferred
                          stock may be converted to 1 common stock;

                    (B)   for gross income of the Purchaser of over
                          US$15 million but under US$20 million:  1 preferred
                          stock may be converted to 2 common stocks; and

                    (C)   for gross income of the Purchaser of over
                          US$20 million: 1 preferred stock may be converted to
                          3 common stocks.

                    In case the performance of US$10 million is not met or the
                    conversion right is not exercised by 31st March 2003 (or 30
                    days after such later date as the audited financial
                    statements of the Purchaser for year 2002 shall have been
                    prepared), the preferred stocks shall expire and have no
                    further effect.

             (iv)   The Purchaser shall issue the converted common stocks
                    requested for under the written notice to the persons
                    entitled as soon as practicable and subject to and in
                    accordance with applicable rules and regulations.

2.2      Closings. The Closing will take place at Room 1501, Central Tower, 28
Queen Road Central, Hong Kong on the Closing Date in accordance with the terms
of this Agreement, or at such other place or time as Purchaser and the
Shareholders mutually agree. At the Closing, Purchaser shall pay to the
Shareholders the Purchase Price pursuant to Section 2.1. Simultaneously, the
Shareholders shall deliver to Purchaser the certificates representing the Shares
together with all necessary instruments of transfer, in form and substance
reasonably satisfactory to Purchaser. At the Closing, there shall also be
delivered to Purchaser and Target Co. the opinions, certificates and other
Contracts, documents and instruments required to be delivered under the terms of
this Agreement.

<PAGE>

ARTICLE III

Representations and Warranties of Shareholders

The Shareholders represent and warrant to Purchaser that the statements
contained in this Article III are true and correct as of the date of this
Agreement unless stated otherwise, and will be true and correct as of the
Closing Date (as though made then and as though such Closing Date was
substituted for the date of this Agreement throughout this Article III).

3.1      Organization and Relationship of Parties. Each Shareholder, Target Co.,
Chinese Joint Venture (the relevant Parties prior to the Closing Date shall be a
corporation duly incorporated, validly existing and in good standing under the
laws of its place of incorporation. On or prior to the Closing Date, the
Shareholders shall own 100% of Target Co., Target Co. shall own the Relevant
Percentage of the Chinese Joint Venture and the Chinese Joint Venture shall own
the Project. Each of the Relevant Parties is duly qualified, licensed or
admitted to do business and is in good standing in its place of incorporation.

3.2      Power and Authority. Each Shareholder has the requisite power and
authority to execute and deliver this Agreement and to perform its obligations
hereunder and to consummate the transactions contemplated hereby. The execution
and delivery by each Shareholder of this Agreement and the consummation of the
transactions contemplated hereby have been duly and validly authorized by all
necessary corporate action. This Agreement has been duly and validly executed
and delivered by each Shareholder and constitutes a legal, valid and binding
obligation of each Shareholder enforceable against each Shareholder in
accordance with its terms.

3.3      Capitalization. As of the date hereof, and immediately prior to the
consummation of the transactions contemplated hereby and before giving effect to
such transactions, the authorized capital stock of the Target Co. consists
50,000 shares of par value of US$1.00, of which 100 shares are issued and
outstanding in accordance with the Schedule hereto. As of the date hereof, there
are no preemptive or similar rights to purchase or otherwise acquire shares of
the capital stock of Target Co. pursuant to any provision of law, the Charter or
memorandum and articles of association (in each case, as amended and in effect
on the date hereof), or any agreement to which Target Co. is a party. All of the
outstanding shares of capital stock of Target Co. have been duly authorized and
validly issued, are fully paid and non-assessable.
<PAGE>
3.4      Business. The Shareholders agree, prior to the Closing Date, to deliver
to Purchaser true and complete copies of the certificate or articles of
incorporation and by-laws (or other comparable charter documents) of the Target
Co. and the Chinese Joint Venture. The Target Co. has no other Subsidiary nor
carry on any business except the holding of the Relevant Percentage of the
Chinese Joint Venture and the Chinese Joint Venture has no other Subsidiary or
business except the Project. Except for aforesaid, the Target Co. nor Chinese
Joint Venture hold no equity, partnership, limited liability company, joint
venture or other interest in any Person.

3.5      No Conflicts. The execution and delivery by the Shareholders of this
Agreement, the performance by the Shareholders of their obligations hereunder
and the consummation of the transactions contemplated hereby does not and will
not:

(a)   conflict with or result in a violation or breach of any of the terms,
      conditions or provisions of the Charter or the certificate or articles of
      incorporation or organization or by-laws (or other comparable charter
      documents) of the Shareholders, or any Subsidiary;

(b)   conflict with or result in a violation or breach of any term or provision
      of any Law or Order applicable to the Shareholders, or any Subsidiary or
      any of their respective Assets and Properties; or

(c)   (i) conflict with or result in a violation or breach of, (ii) constitute
      (with or without notice or lapse of time or both) a default under, (iii)
      require the Shareholders, or any Subsidiary to obtain any consent or
      approval, make any filing with or give any notice to any Person as a
      result or under the terms of, (iv) result in or give to any Person any
      right of termination, cancellation, acceleration or modification in or
      with respect to, (v) result in or give to any Person any additional rights
      or entitlement to increased, additional, accelerated or guaranteed
      payments under, (vi) result in the creation of any new additional or
      increased liability of the Company or any Subsidiary under or (vii) result
      in the creation or imposition of any Lien upon, the Shareholders or any
      Subsidiary or any of their respective Assets and Properties under, any
      Contract or Permit to which the Shareholders or any Subsidiary is a party
      or by which any of their respective Assets and Properties are bound.

3.6      Governmental Approvals and Filings. No consent, approval or action of,
filing with or notice to any Governmental or Regulatory Authority on the part of
the Shareholders, or any Subsidiary is required in connection with the
execution, delivery and performance of this Agreement, or the consummation of
the transactions contemplated hereby or shall have been obtained by the Closing
Date.

3.7      Corporate Formalities; Books and Records.

(a)   Target Co. has complied in all material respects with al corporate
      formalities required to be complied with under applicable laws.

(b)   The minute books and other similar records of Target Co. and each
      Subsidiary as made available to Purchaser prior to the Closing Date under
      this Agreement contain a true and complete record, in all material
      respects, of all action taken at all meetings and by all written consents
      in lieu of meetings of directors, members, stockholders, the management
      committee or boards of directors, subcommittees and committees of the
      boards of directors of Target Co. and each Subsidiary.

3.8      Projections. The Projections constitute a reasonable forecast of the
Chinese Joint Venture and business operations for the periods set forth therein.
The Projections have been prepared based on the estimates and assumptions set
forth therein, which assumptions and estimates are all of the assumptions and
estimates used in formulating such Projections and are reasonable and fair in
light of current conditions and reflect the reasonable estimate of Shareholders
of the results of operations, assets, liabilities, cash flow and other
information projected therein. To the knowledge of the Shareholders, no facts
exist which would result in any material change in any such Projections, save
the adjustments set forth above.
<PAGE>

3.9      Absence of Changes. Since the transactions contemplated by this
Agreement, there has not been any event or development which, individually or
together with other such events, could reasonably be expected to have a material
adverse effect on the Target Co. In addition, without limiting the foregoing and
except for the transactions contemplated by this Agreement neither Target Co.
nor any Subsidiary:

(a)   has (i) declared, set aside or paid any dividend or other distribution in
      respect of the capital stock of Target Co. or any Subsidiary or (ii)
      directly or indirectly redeemed, purchased or otherwise acquired any such
      capital stock or other equity interests;

(b)   authorized, issued, sold or otherwise disposed of, or granted any Option
      with respect to any shares of capital stock or other equity interests of
      Target Co. or any Subsidiary, or modified or amended any right of any
      holder of any outstanding shares of capital stock or other equity
      interests of Target Co. or any Subsidiary or Option with respect thereto;

(c)   (i) increased salary, wages or other compensation (including, without
      limitation, any bonuses, commissions and any other payments) of any
      officer, employee or consultant of Target Co. or any Subsidiary whose
      annual salary, wages and such other compensation is, or after giving
      effect to such change would be, in the aggregate, $1,000 or more per
      annum; (ii) established or modified (A) targets, goals, pools or similar
      provisions under any benefit plan, employment contract or other employee
      compensation arrangement or (B) salary ranges, increase guidelines or
      similar provisions in respect of any benefit plan, employment Contract or
      other employee compensation arrangement; or (iii) adopted, entered into,
      amended, modified or terminated (in whole or in part) any benefit plan;

(d)   (i) incurred any Indebtedness, (ii) made or agreed to make any loans to
      any Person or (iii) made or agreed to make any voluntary purchase,
      cancellation, prepayment or complete or partial discharge in advance of a
      scheduled payment date with respect to, or waiver of any right of Target
      Co. or any Subsidiary under, any Indebtedness of or owing to Target Co. or
      any Subsidiary;

(e)   suffered any physical damage, destruction or other casualty loss (whether
      or not covered by insurance) adversely affecting any of the real or
      personal property or equipment of the material Assets and Properties of
      Target Co. or any Subsidiary;

(f)   failed to pay or satisfy when due any obligation of Target Co. or any
      Subsidiary, except when the failure would not have a material adverse
      effect on the Business or Condition of Target Co. or its Subsidiaries;

(g)   acquired any business or Assets and Properties of any Person (whether by
      merger, consolidation or otherwise) or disposed or leased, or incurred a
      Lien (other than a Permitted Lien) on, any Assets and Properties of Target
      Co. or any Subsidiary, in each case, other than acquisitions or
      dispositions of products in the ordinary course of business of Target Co.
      or such Subsidiary consistent with past practice;

(h)   entered into, amended, modified, terminated (in whole or in part) or
      granted a waiver under or given any consent with respect to any
      Intellectual Property;
<PAGE>

(i)   commenced, terminated or changed any line of the Business;

(j)   entered into any transaction with any stockholder or Affiliate of Target
      Co. or any Subsidiary, other than pursuant to any Contract in effect on
      the Audited Financial Statement Date;

(k)   made any change in the accounting methods or procedures of Target Co. or
      any Subsidiary or became subject to any conditions or event which has or
      could reasonably be expected to have a material adverse effect on the
      Business or Condition of Target Co.; or

(l)   entered into any agreement to do any of the things described in the
      preceding paragraphs, including, without limitation, with respect to any
      Business Combination not otherwise restricted by the preceding paragraphs.

3.10      No Undisclosed Liabilities. At Closing, Target Co. will have no
Liabilities of, relating to or affecting the Target Co. Assets or any Subsidiary
or any of their respective Assets and Properties except Liabilities incurred in
the ordinary course of business in accordance with the provisions of this
Agreement.

3.11      Taxes.

(a)   All Taxes which could constitute a lien on the Assets an Properties of
      Target Co. or the Subsidiaries and which were due and payable by Target
      Co. or the Subsidiaries with respect to the Closing Date and all periods
      beginning and ending prior thereto have been or will be paid by Target Co.
      prior to delinquency. All Tax Returns that have been filed by or with
      respect to Target Co. or any Subsidiary, or any affiliated, combined,
      consolidated, unitary or similar group of which Target Co. is or was a
      member with any Taxing Authority correctly and completely reflects the
      income, franchise or other Tax liability and all other information
      required to be reported thereon. Target Co. and the Subsidiaries have
      withheld and paid all Taxes required to have been withheld and paid in
      connection with amounts paid or due and payable to any employee, creditor,
      independent contractor or other third party.

(b)   Target Co. does not expect any Taxing Authority to asses any additional
      Taxes against or in respect of it or any Subsidiary for any past period.
      There is no dispute or claim concerning any Tax liability of Target Co. or
      any Subsidiary either (i) claimed or raised by any Taxing Authority or
      (ii) otherwise known to Target Co., or any Subsidiary. Target Co. has
      delivered to Purchaser, with respect to Target Co. and each Subsidiary,
      complete and correct copies of all federal, state, local and foreign
      income Tax Returns filed by, and all correspondence, agreements, notices,
      reports or statements of deficiencies with, from or to any Taxing
      Authority in each case since the date of its incorporation.
<PAGE>

3.12     Legal Proceedings.

(a)   Neither Target Co. nor any Subsidiary has knowledge of any Orders
      outstanding against Target Co. or any Subsidiary; and

(b)   there are no Actions or Proceedings pending or, to the knowledge of Target
      Co., or any Subsidiary, threatened against, relating to or affecting
      Target Co. or any Subsidiary or any of their respective Assets and
      Properties. Neither Target Co. nor any Subsidiary is in default with
      respect to any Order of any court or Governmental or Regulatory Authority
      and there are no unsatisfied judgments against Target Co., or any
      Subsidiary.

3.13      Compliance With Laws and Orders. Target Co. and the Subsidiaries and
the conduct of the Business are in compliance with all applicable Laws and
Orders, except where the failure to comply would not have a material adverse
effect on the Business or Condition of Target Co. or the Shares. None of Target
Co., or any Subsidiary has any knowledge that it is not in compliance with any
of such Laws or Orders where the failure to comply would have a material adverse
effect on the Business or Condition of Target Co. or the Shares. None of Target
Co., or any Subsidiary has any reasonable basis to anticipate that any presently
existing circumstances are likely to result in violations of any such Laws or
Orders which would, individually or in the aggregate, have a material adverse
effect on the Business or Condition of Target Co.

3.14     Permits.

(a)   Target Co. and each Subsidiary own or validly hold all Permits that are
      material to the Business; and

(b)   neither Target Co. nor any Subsidiary is, or has receive any notice that
      it is, in default (or with the giving of notice or lapse of time or both,
      would be in default) under any such Permit.

3.15     Affiliate Transactions.

(a)   there are no Liabilities owed to Target Co. or any Subsidiary, on the one
      hand, by any current or former equity holder or Affiliate of Target Co.,
      on the other hand,

(b)   there are no liabilities owed by Target Co. or any Subsidiary on the one
      hand, to any such current or former stockholder or Affiliate of Target Co.
      or any Affiliate of any such stockholder or Affiliate, on the other hand,

(c)   neither Target Co., nor any such current or former stockholder or
      Affiliate provides or causes to be provided any Assets and Properties,
      services or facilities to Target Co. or any Subsidiary, and

(d)   neither Target Co. nor any Subsidiary provides or causes to be provided
      any assets, services or facilities to any such current or former
      stockholder or Affiliate.
<PAGE>

3.16      Business Relationships. Since the date of its incorporation, no
business relationship of Target Co. or any Subsidiary with any customer,
supplier or any group of customers or suppliers whose purchases or sales, as the
case may be, are individually or in the aggregate material to the Business or
Condition of Target Co. has been, or to the knowledge of Target Co., or any
Subsidiary, has been threatened to be, terminated, canceled, limited or changed
or modified adversely, and, to the knowledge of Target Co., or any Subsidiary,
there exists no present condition or state of facts or circumstances with
respect to such business relationship that would materially adversely affect the
Business or Condition of Target Co., or prevent Target Co. from conducting the
Business after the consummation of the transactions contemplated by this
Agreement, in substantially the same manner in which it has heretofore been
conducted.

3.17      Other Negotiations; Brokers. Neither Target Co., nor any of their
respective Affiliates (nor any investment banker, financial advisor, attorney,
accountant or other Person retained by or acting for or on behalf of Target Co.,
any Subsidiary, or any such Affiliate) (i) has entered into any agreement that
conflicts with any of the transactions contemplated by this Agreement or (ii)
has entered into any agreement or had any discussions with any third party
regarding any transaction involving the Company or any Subsidiary which could
result in Purchaser or its members, officers, director, employee, agent or
Affiliate of any of them being subject to any claim for liability to said third
party as a result of entering into this Agreement or consummating the
transactions contemplated hereby or thereby.

3.18      Disclosure. This Agreement does not, and the documents and
certificates executed by Target Co. or otherwise furnished by Target Co. to
Purchaser do not contain any untrue statement of a material fact or omit to
state a material fact necessary in order to make the statements contained herein
or therein, in light of the circumstances under which they were made, not
misleading.

ARTICLE IV

Representations and Warranties of Purchaser

Purchaser represents and warrants to Shareholders that:

4.1      Organization and Authority. Purchaser is a corporation duly
incorporated, validly existing and in good standing under the laws of its state
of incorporation, with the corporate power and authority to carry on its
business as now being conducted. The execution and delivery of this Agreement
and the consummation of the transactions contemplated in this Agreement have
been, or will be prior to closing, duly authorized by all requisite corporate
actions on the part of Purchaser. This Agreement has been duly executed and
delivered by Purchaser and constitutes the valid, binding, and enforceable
obligation of Purchaser.
<PAGE>
4.2      Ability to Carry Out Agreement. To the best of Purchaser's knowledge
and belief, the execution and performance of this Agreement will not violate, or
result in a breach of, or constitute a default in, any provisions of applicable
law, any agreement, instrument, judgment, order or decree to which Purchaser is
a party or to which Purchaser is subject. No consents of any persons under any
contract or agreement required to be disclosed pursuant to this Agreement are
required for the execution, delivery, and performance by Purchaser of this
Agreement.

4.3      The Consideration Shares. The Consideration Shares to be issued
pursuant to this Agreement will be issued at Closing, free and clear of liens,
claims, and encumbrances, and Purchaser has all necessary right and power to
issue the consideration Shares to the Shareholders as provided in this Agreement
without the consent or approval of any person, firm, corporation, or
governmental authority.

4.4      Capitalization of Purchaser. The capitalization of Purchaser is, as of
the Closing Date, comprises of one hundred million (100,000,000) shares of
US$0.001 par value common stock of which, as of the Closing Date, not more than
Six Million (6,000,000) shares will be issued and outstanding. All issued and
outstanding shares are legally issued, fully paid, and non-assessable, and are
not issued in violation of the preemptive or other right of any person. In
addition to the shares outstanding, there will be, if mutually agreeable between
the Purchaser and the Shareholders as of the Closing Date, certain outstanding
shares, warrants and/or option to raise financing for such purpose mutually
agreeable between the Purchaser and the Shareholders.

4.5      Financial Information. Purchaser has provided to the Shareholders, or
will provide prior to Closing, the Information and Disclosure Statement filed
with NASD on or about March 28, 1998 which with all other information included
in such statement, shall be referred to as the "Purchaser Financials." Purchaser
has no obligations or liabilities (whether accrued, absolute, contingent,
liquidated or otherwise, including without limitation any tax liabilities due or
to become due) which are not fully disclosed and adequately provided for in
Purchaser Financials, excepting current liabilities incurred and obligations
under agreements entered into in the usual and ordinary course of business since
the date of Purchaser Financials, none of which (individually or in the
aggregate) are material except as expressly indicated in Purchaser Financials.
Purchaser is not a guarantor or otherwise contingently liable for any material
amount of such indebtedness. Except as indicated in Purchaser Financials or
Purchaser Disclosure Documents, there exists no default under the provisions of
any instrument evidencing such indebtedness or of any agreement relating thereto
in excess of an aggregate of US$1,000.

4.6      Litigation. To the best knowledge and belief of Purchaser, except as
disclosed pursuant to this Agreement, there is neither pending nor threatened,
any action, suit or arbitration to which its property, assets or business is or
is likely to be subject and in which an unfavorable outcome, ruling or finding
will or is likely to have a material adverse effect on the condition, financial
or otherwise, or properties, assets, business or operations, which would create
a material liability on the part of Purchaser, or which would conflict with this
Agreement or any action taken or to be taken in connection with it.
<PAGE>
4.7      Tax Matters. Purchaser has filed or will file all federal, state, and
local income, excise, property, and other tax returns, forms, or reports, which
are due or required to be filed by it and has paid, or made adequate provision
for payment of all taxes, interest, penalty fees, assessments, or deficiencies
shown to be due or claimed to be due or which have or may become due on or in
respect to such returns or reports.

4.8      Contracts. Except as disclosed pursuant to this Agreement, there are no
contracts, actual or contingent obligations, agreements, franchises, license
agreements, or other commitments between Purchaser and other third parties which
are material to the business, financial condition, or results of operation of
Purchaser, taken as a whole. For purposes of the preceding sentence, the term
"material" refers to any obligation or liability which by its terms calls for
aggregate payments of more than US$1,000.

4.9      Material Contract Breaches; Defaults. To the best of Purchaser's
knowledge and belief, except as disclosed in Purchaser Financials, it has not
materially breached, nor has it any knowledge of any pending or threatened
claims or any legal basis for a claim that it has materially breached, any of
the terms or conditions of any agreements, contracts, or commitments to which it
is a party or is bound and which might give rise to a claim by anyone against
Purchaser. To the best of its knowledge and belief, Purchaser is not in default
in any material respect under the terms of any outstanding contract, agreement,
lease, or other commitment which might give rise to a claim against Purchaser,
and there is no event of default or other event which, with notice or lapse of
time or both, would constitute a default in any material respect under any such
contract, agreement, lease, or other commitment which might give rise to a claim
against Purchaser in respect of which Purchaser has not taken adequate steps to
prevent such a default from occurring.

4.10      Securities Laws. Purchaser is a public company and represents that,
except as disclosed in Purchaser Disclosure Documents and in Purchaser
Financials, it has no existing or threatened liabilities, claims, lawsuits, or
basis for the same with respect to its original stock issuance to its founders,
its initial public offering, any other issuance of stock, or any dealings with
its stockholders, the public, the brokerage community, the SEC, any state
regulatory agencies, or other persons.

4.11      Brokers. Purchaser has not agreed to pay any brokerage fees, finder's
fees, or other fees or commissions with respect to the transactions contemplated
in this Agreement which could give rise to a claim against the Shares except as
set out in section 2.1(d). To the best of Purchaser's knowledge, no person or
entity, is entitled, or intends to claim that it is entitled, to receive any
such fees or commissions in connection with such transactions. Purchaser further
agrees to indemnify and hold harmless the other parties to this Agreement
against liability to any other broker claiming to act on behalf of Purchaser.
<PAGE>

4.12     Corporate Records. Copies of all corporate books and records,
including, but not limited to, any other documents and records of Purchaser
relating to the proceeding of its shareholders and directors will be provided to
the Shareholders prior to Closing at the request of the Shareholders. All such
records and documents are and will be complete, true, and correct.

4.13     Approvals. Except as otherwise provided in this Agreement, no
authorization, consent, or approval of, or registration or filing with, any
governmental authority or any other person is required to be obtained or made by
Purchaser in connection with the execution, delivery, or performance of this
Agreement.

4.14     Full Disclosure. The information concerning Purchaser, set forth in
this Agreement, and in Purchaser Disclosure Documents, is, to the best of
Purchaser's knowledge and belief, complete and accurate in all material respects
and does not contain any untrue statement of a material fact or omit to state a
material fact required to make the statements made, in light of the
circumstances under which they were made, not misleading.

4.15     Date of Representations and Warranties. Each of the representations and
warranties of Purchaser set forth in this Agreement is true and correct at and
as of the Closing Date, with the same force and effect as though made at and as
of the Closing Date, except for changes permitted or contemplated by this
Agreement. Without limiting the generality of the foregoing, Company represents
and warrants that as of the Closing Date, its payables will be US$1,000 or less.

ARTICLE V

Conditions Precedent to Obligations of the Shareholders

All obligations of the Shareholders under this Agreement are subject to the
fulfillment, prior to or as of the Closing Date, of each of the following
conditions:

5.1      Representations and Warranties. The representations and warranties by
Purchaser set forth in this Agreement shall be true and correct at and as of the
Closing Date, with the same force and effect as though made at and as of the
Closing Date, except for changes permitted or contemplated by this Agreement.
Purchaser shall deliver on the Closing Date a certificate to this effect,
referred to as Purchaser Certificate of Representations and Warranties.

5.2      No Breach or Default. Purchaser shall have performed and complied with
all covenants, agreements, and conditions required by this Agreement to be
performed or complied with by it prior to or at the Closing.

5.3      Action to Pay Purchase Price. Purchaser shall have taken all corporate
and other action necessary to issue and deliver the Consideration Shares
representing the Purchase Price to the Shareholders pursuant to this Agreement
at Closing.
<PAGE>
5.4      Company Disclosure Documents. Before Closing, Purchaser will have
delivered to the Shareholders, or caused the delivery of, Purchaser Disclosure
Documents.

5.5      Approval of Other Instruments and Documents by the Shareholders.  All
instruments and documents delivered to the Shareholders pursuant to the
provisions of this Agreement shall be reasonably satisfactory to their legal
counsel.

5.6      Opinion of Counsel. Purchaser shall have delivered to the Shareholders
an opinion of counsel dated the Closing Date or thereabouts to the effect that:

(a)   Purchaser is duly organized, validly existing, and in good standing under
      the laws of the United States and its state of incorporation.

(b)   Purchaser has the corporate power to conduct business and, specifically,
      to carry on its business as now being conducted and is duly qualified to
      do business in the United States and its state of incorporation.

(c)   All corporate actions and director approvals have been properly obtained
      and completed by Purchaser, to the extent, if any, that they are
      necessary, for all actions required under this Agreement prior to Closing.

(d)   This Agreement has been duly authorized, executed, and delivered by
      Purchaser and is a valid and binding obligation of Purchaser and, in this
      regard, Purchaser shall provide the Shareholders at Closing with a
      certified copy of the resolution or resolutions of the Board of Directors
      of Purchaser, approving and authorizing the issuance by Purchaser of the
      Shares upon the terms and conditions herein set forth.

ARTICLE VI

Conditions Precedent to Obligations of Purchaser

All obligations of Purchaser under this Agreement are subject to the
fulfillment, prior to or as of the Closing Date, of each of the following
conditions:

6.1      Representations and Warranties. The representations and warranties
executed by and on behalf the Shareholders set forth in this Agreement shall be
true and correct at and as of the Closing Date, with the same force and effect
as though made at and as of the Closing Date, except for changes permitted or
contemplated by this Agreement. The Shareholders shall cause to be delivered on
the Closing Date the certificate to this effect, referred to in this Agreement
as the Certificate of Representations and Warranties executed by the Director of
the Shareholders.

6.2      No Breach or Default.  The Shareholders shall have performed and
complied with all covenants, agreements, and conditions required by this
Agreement to be performed or complied with by them prior to or at the Closing.
<PAGE>

6.3      Action to Transfer the Shares.   The Shareholders shall have taken all
action necessary to transfer the Shares to Purchaser pursuant to this Agreement.
In this regard, the conveyance(s) of the Shares shall contain such good and
sufficient instruments of transfer and bought and sold notes in form and
substance reasonably satisfactory to Purchaser's counsel and with all requisite
documentary stamps, if any, affixed, as shall be required or as may be
appropriate in order effectively to vest in Purchaser's good, indefeasible, and
marketable title to the Shares free and clear of all liens, mortgages,
conditional sales, and other title retention agreements, pledges, assessments,
covenants, restrictions, reservations, easements, and all other encumbrances of
every nature.

In addition to the conveyance and delivery of the Shares, the Shareholders shall
have taken all action necessary to deliver all of Target Co.'s corporate books
and records, including but not limited to its files, documents, papers,
agreements, formulas, books of account, and records pertaining to its business,
and evidence of compliance with applicable securities laws, if required and
requested by Purchaser's counsel.

6.4      Approval of Other Instruments and Documents by Purchaser. All
instruments and documents delivered to Purchaser pursuant to the provisions of
this Agreement shall be reasonably satisfactory to Purchaser and its legal
counsel.

6.5      Opinions, Affidavits and Declarations of the Shareholders.  The
Shareholders shall have delivered to Purchaser an opinion:-

(a)   of qualified legal counsel reasonably satisfactory to Purchaser dated as
      at the Closing Date or thereabouts, that:

      (i)   each Shareholder and Target Co. is duly organized, validly existing,
            and in good standing under the laws of British Virgin Islands and
            that the Shares are based on the information provided from the
            Shareholders free from encumbrances except as disclosed pursuant to
            this Agreement.

      (ii)  each Shareholder and Target Co. has the corporate power to carry on
            its business as now being conducted and is duly qualified to do
            business.

      (iii) All action and approvals required in connection to the transfer of
            the Shares to Purchaser have been properly taken, completed or
            obtained by the Shareholders and the Target Co. respectively, to the
            extent, if any, that they are necessary.

      (iv)  This Agreement has been duly authorized, executed, and delivered by
            the Shareholders and is a valid and binding obligation of the
            Shareholders.
<PAGE>
(b)   of qualified legal counsel reasonably satisfactory to Purchaser, dated as
      at the Closing Date or thereabouts, that:

      (i)   the Chinese Joint Venture is duly organized, validly existing, in
            China.

      (ii)  the Chinese Joint Venture has the corporate power to carry on its
            business as now being conducted and is duly qualified to do
            business.

      (iii) All action and approvals required in connection to the establishment
            of the Joint Venture Company and entry into the Project have been
            properly taken, completed or obtained by the Chinese Joint Venture,
            to the extent, if any, that they are necessary.

ARTICLE VII

Covenants and Agreements of the Shareholders

Up to and including the Closing Date, the Shareholders covenant that:

7.1      Access and Information. After the execution of this Agreement, the
Shareholders will permit Purchaser to have reasonable access to all information
necessary to verify the representations and warranties made herein. After the
Closing, the Shareholders will continue to permit Purchaser access to such
additional documentation and information as is reasonably necessary to
completion of the transactions contemplated under this Agreement.

7.2      Conduct of Business as Usual. Up until the Closing Date, the
Shareholders shall insure that the Shareholder's operations shall be conducted
only in the usual and ordinary course, and that no change will be made to such
operations which might adversely affect the value of the Shares to be
transferred to Purchaser.

7.3      Best Efforts.  The Shareholders shall use its best efforts to fulfill
all conditions of the Closing including the timely solicitation of affirmative
consent of all third parties necessary to effect a Closing under this Agreement.

7.4      Assent to Sale of Shares.   In the event the sale of the Shares is
consummated, then the shareholders of the Shareholders agree to such sale and
waive, surrender, and agree not to exercise any rights which such shareholders
might have concerning the sale of the Shares.

ARTICLE VIII

Covenants and Agreements of Purchaser

Up to and including the Closing Date, Purchaser covenants that:

8.1      Change in Purchaser Directors.  Purchaser's Board of Directors shall
immediately subsequent to Closing comprise a new board with five (5) seats and
the Purchaser shall render all assistance for appointment of the new board
required by the Shareholders including resignation of all existing directors
with confirmation by such resigning directors of no claims against the
Purchaser.
<PAGE>
8.2      Maintenance of Capital Structure. Up until the Closing Date, or
termination hereof, whichever is the earlier, except as disclosed herein or
required under the terms of this Agreement, no change shall be made in the
Articles of Incorporation or By laws of Purchaser, or the authorized capital
stock of Purchaser.

8.3      Avoidance of Distributions. Up until the Closing Date, Purchaser shall
not declare any dividends, make any payments or distributions to its
stockholders or purchase for cash or redeem any of its shares of capital stock.

8.4      Conduct of Business as Usual. Up until the Closing Date, Purchaser
shall conduct its operations only in the usual and ordinary course, and that no
change will be made to such operations which might adversely affect the value of
Purchaser.

8.5      Access and Information. After the execution of this Agreement,
Purchaser will permit the Shareholders to have reasonable access to all
information necessary to verify the representations and warranties of Purchaser.
After the Closing, Purchaser will continue to permit the Shareholders access to
such additional documentation and information regarding Purchaser as is
reasonably necessary to completion of the transactions contemplated under this
Agreement.

8.6      Best Efforts.  Purchaser shall use its best efforts to fulfill or
obtain the fulfillment of all conditions of the Closing, including the timely
solicitation of affirmative consent of all third parties necessary to effect a
Closing under this Agreement.

ARTICLE IX

Termination

9.1      Termination Without Cause.  This Agreement may be terminated at any
time prior to the Closing Date without cost or penalty to either party:

(a)   Mutual Consent. By mutual consent of the Shareholders and Purchaser.

(b)   Actions or Proceedings. By the Shareholders or Purchaser (unless the
      action or proceeding referred to is caused by a breach or default on the
      part of the Shareholders or Purchaser of any of their representations,
      warranties, or obligations under this Agreement), if there shall be any
      actual or threatened action or proceeding by or before any court or any
      other governmental body which shall seek to restrain, prohibit, or
      invalidate the transactions contemplated by this Agreement and which, in
      the judgment of the Shareholders or Purchaser, made in good faith and
      based upon the advice of legal counsel, makes it inadvisable to proceed
      with the transactions contemplated by this Agreement.

9.2      Termination with Cause.  This Agreement may be terminated, with the
terminating party to be reimbursed by the other party of all expenses and costs
related to this Agreement, if:

(a)   Breach or Noncompliance by Shareholders. The Shareholders shall fail to
      comply in any material aspect with any of their representations,
      warranties, or obligations under this Agreement, or if any of the
      representations or warranties made by the Shareholders under this
      Agreement shall be inaccurate in any material respect and is not cured
      within ten (10) business days of notice of such breach.

(b)   Breach or Noncompliance by Purchaser. Purchaser shall fail to comply in
      any material aspect with any of its representations, warranties, or
      obligations under this Agreement, or if any of the representations or
      warranties made by Purchaser under this Agreement shall be inaccurate in
      any material respect and is not cured within ten (10) business days of
      notice of such breach.
<PAGE>
ARTICLE X

Securities

10.1     Private Transaction.   The Shareholders understand that the Shares
issued pursuant to this Agreement, have not been nor will they be registered
under the Securities Act of 1933 as amended ("'33 Act"), but are issued pursuant
to exemptions from registration of the '33 Act, and Purchaser's reliance on such
exemptions in issuing the Shares is predicated in part on the representations of
the Shareholders, to be executed by the Shareholders and delivered to Purchaser
at Closing.

10.2     Shareholders Restrictions.   The  Shareholders acknowledge and agree
that there may be certain restrictions under applicable legislation restricting
sale and/or disposal of the Consideration Shares under applicable state or
federal laws or other applicable directives.

ARTICLE XI

Indemnification

11.1      Indemnification.  As provided herein, the Shareholders and Purchaser
shall each indemnify and hold harmless the other for one (1) year following the
date of Closing under this Agreement against and in respect of any liability,
damage, or deficiency, all actions, suits, proceedings, demands, assessments,
judgments, costs and expenses resulting from any misrepresentations, breach of
covenant or warranty, or from any misrepresentation contained in any certificate
furnished hereunder. In this regard, the Shareholders agree that Purchaser is
held harmless from and indemnified against any loss, damage, or expense
resulting from the falsity or breach of any of the representations, warranties,
or agreements of the Shareholders contained herein under which the Shares
hereunder are transferred to the Shareholders.

ARTICLE XII

Confidential Information

12.1      Confidential Information.  Notwithstanding any termination of this
Agreement, Purchaser, the Shareholders and their representatives, agree to hold
in confidence any information not generally available to the public received by
them from the other party pursuant to the terms of this Agreement. If this
Agreement is terminated for any reason, Purchaser, the Shareholders. and their
representatives will continue to hold such information in confidence and will,
to the extent requested by any party, promptly return to the requesting party
all written material and all copies or abstracts thereof previously furnished.
<PAGE>

ARTICLE XIII

Miscellaneous Provisions

13.1      Survival of Representations and Warranties. All representations,
warranties, and covenants made by any party in this Agreement shall survive the
Closing hereunder and the consummation of the transactions contemplated hereby
for three (3) years from the Closing Date. The Shareholders and Purchaser are
executing and carrying out the provisions of this Agreement in reliance on the
representations, warranties, and covenants and agreements contained in this
Agreement or at the Closing of the transactions herein provided for including
any investigation upon which they might have made or any representations,
warranty, agreement, promise, or information, written or oral, made by the other
party or any other person other than as specifically set forth herein.

13.2      Costs and Expenses. Subject to paragraph 9 herein, all costs and
expenses in the proposed sale and transfer described in this Agreement shall be
borne by the Shareholders and Purchaser in the following manner:

(a)   Attorneys Fees and Costs. Each party has been represented by its own
      attorney(s) in this transaction, shall pay the fees of its own
      attorney(s), except as may be expressly set forth herein to the contrary.

(b)   Costs of Closing. Each party shall bear its reasonable share of all other
      Closing costs and expenses arising from this Agreement.

13.3      Further Assurances. At any time and from time to time, after the
effective date, each party will execute such additional instruments and take
such action as may be reasonably requested by the other party to confirm or
perfect title to any property transferred hereunder or otherwise to carry out
the intent and purposes of this Agreement.

13.4      Waiver. Any failure of any party to this Agreement to comply with any
of its obligations, agreements, or conditions hereunder may be waived in writing
by the party to whom such compliance is owed. The failure of any party to this
Agreement to enforce at any time any of the provisions of this Agreement shall
in no way be construed to be a waiver of any such provision or a waiver of the
right of such party thereafter to enforce each and every such provision. No
waiver of any breach of or non-compliance with this Agreement shall be held to
be a waiver of any other or subsequent breach or non-compliance.

13.5      Notices. All notices and other communications hereunder shall either
be in writing and shall be deemed to have been given if delivered in person,
sent by overnight delivery service or sent by facsimile transmission, to the
parties hereto, or their designees, as follows:
<PAGE>
To Shareholders:

c/o Mr. Lawrence Lok
Room 1501, Central Tower
28 Queen  Road Central
Hong Kong

Telephone  (852) 2525 6088
Facsimile  (852) 2525 6168

To Purchaser:

c/o  Carmine J.  Bua,  III, Esq
Suite 333, 3838 Camino Del Rio North
San Diego, California 92108-1789
United States of America

Telephone  (619) 280 8000
Facsimile  (619) 280 8001

13.6      Headings.  The paragraph and subparagraph headings in this Agreement
are inserted for convenience only and shall not affect in any way the meaning or
interpretation of this Agreement.

13.7      Counterparts. This Agreement may be executed simultaneously in two or
more counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.

13.8      Governing Law. This Agreement shall be governed by the laws of the
United States, State of Nevada.

13.9      Binding Effect. This Agreement shall be binding upon the parties
hereto and inure to the benefit of the parties, their respective heirs,
administrators, executors, successors, and assigns.

13.10      Entire Agreement. This Agreement contains the entire agreement
between the parties hereto and supersedes any and all prior agreements,
arrangements, or understandings between the parties relating to the subject
matter of this Agreement. No oral understandings, statements, promises, or
inducements contrary to the terms of this Agreement exist. No representations,
warranties, covenants, or conditions, express or implied, other than as set
forth herein, have been made by any party.
<PAGE>
13.11      Severability. If any part of this Agreement is deemed to be
unenforceable the balance of the Agreement shall remain in full force and
effect.

13.12      Amendment. This Agreement may be amended only by a written instrument
executed by the parties or their respective successors or assigns.

13.13      Facsimile Counterparts.  A facsimile,  telecopy or other reproduction
of this Agreement may be executed by one or more parties hereto and such
executed copy may be delivered by facsimile of similar instantaneous electronic
transmission device pursuant to which the signature of or on behalf of such
party can be seen, and such execution and delivery shall be considered valid,
binding and effective for all purposes. At the request of any party hereto, all
parties agree to execute an original of this Agreement as well as any facsimile,
telecopy or other reproduction hereof.

13.14      Time is of the Essence. Time is of the essence of this Agreement and
of each and every provision hereof.

IN WITNESS WHEREOF, the parties have executed this Agreement the day and year
first above written.

                         Purchaser

                         Phileo Management Company Inc.

                         By:  /s/ George Delmas
                         Name:    George Delmas
                         Title:   President

                         Shareholders

                         CSI  Telecoms Limited

                         By: /s/  Han Xu
                         Name:    Han Xu
                         Title:   Director

<PAGE>

                         Actionville Assets Limited

                         By: /s/  Fung Pliney
                         Name:    Fung Pliney
                         Title:   Director

                         Bell Star Developments Limited

                         By: /s/  Chang Lee
                         Name:    Chang Lee
                         Title:   Director

                         Busywell Trading Limited

                         By: /s/  East Asia Corporate Services (Nominees) Ltd.
                         Name:    East Asia Corporate Services (Nominees) Ltd.
                         Title:   Director

                         Dragon Winner Limited

                         By: /s/  Holistic Secretaries Limited
                         Name:    Holistic Secretaries Limited
                         Title:   Director

                         Gold Accessories Limited

                         By: /s/  Lok Wien Ming Lawrence
                         Name:    Lok Wien Ming Lawrence
                         Title:   Director

<PAGE>

                         Golden Joy Agents Limited

                         By:  /s/ Lie San Wai Cecilia
                         Name:    Lie San Wai Cecilia
                         Title:   Director

                         Goldwell Agents Limited

                         By:  /s/ Wong Wing Koseng
                         Name:    Wong Wing Koseng
                         Title:   Director

                         Good Wisdom Industries Limited

                         By:  /s/ Kiau Walter
                         Name:    Kiau Walter
                         Title:   Director

                         Healthy Choice Assets Limited

                         By: /s/  Chan Cheuk Liau
                         Name:    Chan Cheuk Liau
                         Title:   Director

                         Kind Planet Assets Limited

                         By: /s/  Wong Cheuk Ling
                         Name:    Wong Cheuk Ling
                         Title:   Director

                         Prosperous Choice Limited

                         By: /s/  Chen Wai Lai
                         Name:    Chen Wai Lai
                         Title:   Director

                         /s/ Cheryl Chan
                             Cheryl Chan

                         /s/ Mak Wai Keung, Shawn
                             Mak Wai Keung, Shawn

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