Document:

STOCK PURCHASE AGREEMENT

         This Stock Purchase Agreement (this "AGREEMENT") is made and entered
into as of July 30, 2001 by and between Tengtu International Corp., a Delaware
corporation (the "COMPANY") and Bestler International Limited (the "INVESTOR").

         WHEREAS, the Investor desires to make an equity investment in the
Company; and

         WHEREAS, the Company desires to issue to the Investor, and the Investor
desires to purchase from the Company, shares of the Company's $.01 par value per
share common stock (the "COMMON STOCK"), pursuant to Regulation S, promulgated
under the Securities Act of 1933, as amended (the "1933 ACT"), on the terms and
conditions set forth in this Agreement;

         WHEREAS, the Company has executed certain Investor Rights Agreements in
connection with a private placement pursuant to Regulation S promulgated under
the 1933 Act during the period from April 2001 to June 2001 (the "INVESTOR
RIGHTS AGREEMENTS");

         NOW, THEREFORE, the parties hereby agree as follows:

1.       AGREEMENT TO PURCHASE AND SELL THE COMMON STOCK. The
         Company agrees to issue to the Investor, and the Investor agrees to
         purchase from the Company One Million, Two Hundred Nineteen Thousand,
         Five Hundred Twelve (1,219,512) shares of Common Stock at a price of
         US$1.23 per share, for a total purchase price of One Million, Five
         Hundred Thousand Dollars (US$1,500,000) (the "PURCHASE PRICE") pursuant
         to Regulation S promulgated under the 1933 Act.

2.       CLOSING. The purchase and sale of the Common Stock will take place at
         the offices of Hecht & Associates, P.C., 60 East 42nd Street, Suite
         5101, New York, New York 10165-5101, U.S.A., at 10:00 a.m. New York
         time, on August 2, 2001, or at such other time and place as the Company
         and the Investor mutually agree upon (which time and place are referred
         to in this Agreement as the "CLOSING"). At the Closing, the Company
         will deliver to the Investor the original stock certificates in
         Investor's name and in such denominations as Investor may specify
         against delivery to the Company by the Investor of the Purchase Price,
         paid by wire transfer of immediately available funds to the account
         designated by the Company in writing prior to the Closing.

3.       REPRESENTATIONS AND WARRANTIES OF THE COMPANY.  The
         Company hereby represents and warrants to the Investor as follows:

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         3.1   ORGANIZATION, GOOD STANDING AND QUALIFICATION. The Company has
               been duly incorporated and organized, and is validly existing
               and, except as set forth in the Schedule of Exceptions attached
               hereto as Exhibit A, in good standing, under the laws of the
               State of Delaware. The Company has the corporate power and
               authority to enter into and perform this Agreement, to own and
               operate its properties and assets and to carry on its proposed
               business as currently conducted.

         3.2   DUE AUTHORIZATION. All corporate action on the part of the
               Company's directors and shareholders necessary for the
               authorization, execution, delivery of, and the performance of all
               obligations of the Company under this Agreement, has been taken
               or will be taken prior to the Closing, and this Agreement
               constitutes the valid and legally binding obligations of the
               Company, enforceable in accordance with its terms.

         3.3   VALID ISSUANCE OF STOCK. The Common Stock, when issued and paid
               for as provided in this Agreement, will be duly authorized,
               validly issued, fully paid and nonassessable.

         3.4   GOVERNMENTAL CONSENTS. To the best of the Company's knowledge, no
               consent, approval, order or authorization of, or registration,
               qualification, designation, declaration or filing with any court,
               governmental agency, regulatory authority or political
               subdivision thereof, or any other entity, is required in
               connection with the execution, delivery and performance by the
               Company of this Agreement.

         3.5   LITIGATION. There is no action, suit, proceeding, claim,
               arbitration or investigation pending (or, to the best knowledge
               of the Company, currently threatened) against the Company or any
               company deemed in control of the Company, their respective
               activities, properties or assets or, to the best of the Company's
               knowledge, against any officer, director or key employee of the
               Company or any Company deemed in control of the Company in
               connection with such officer's, director's or key employee's
               relationship with, or actions taken on behalf of, the Company or
               any Company deemed in control of the Company. The Company has no
               knowledge or belief that there is pending or threatened any claim
               or litigation against the Company contesting its right to
               produce, manufacture, sell, use or offer any product, process,
               method, substance, part or other material or service presently
               produced, manufactured, sold, used or offered or planned to be
               produced, manufacture, sold, used or

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               offered by the Company. The Company has no knowledge or belief
               that there exists, or there is pending or planned, any patent,
               invention, device, application or principle, which would
               materially adversely affect the condition, financial or
               otherwise, or the operations of the Company.

         3.6   RELATED-PARTY TRANSACTIONS. No employee, officer or director of
               the Company or any Company deemed in control of the Company or
               member of his or her immediate family is indebted to the Company,
               nor is the Company or any Company deemed in control of the
               Company indebted (or committed to make loans or extend or
               guarantee credit) to any of them, except as otherwise described
               in the Schedule of Exceptions. To the best of the Company's
               knowledge, none of such persons has any direct or indirect
               ownership in any firm or corporation with which the Company is
               affiliated or with which the Company has a business relationship,
               or any firm or corporation that competes with the Company, except
               that employees, officers or directors of the Company members of
               their immediate families may own non-controlling interests in
               stock of publicly traded companies that may compete with the
               Company. To the best of the Company's knowledge, no such officer
               or director or any member of their immediate families is,
               directly or indirectly, interested in any material contract with
               the Company, except as set forth in the Schedule of Exceptions.

         3.7   PERMITS. To the best of the Company's knowledge, the Company has,
               or is in the process of obtaining, all franchises, permits,
               licenses and any similar authority necessary for the conduct of
               its business as now being conducted by it, the lack of which
               could materially and adversely affect its business, properties or
               financial condition and believes it can obtain, without undue
               burden or expense, any similar authority for the conduct of its
               business as planned to be conducted. The Company is not in
               default in any material respect under any of such franchises,
               permits, licenses or other similar authority.

         3.8   REGISTRATION RIGHTS AND OTHER SHAREHOLDER RIGHTS. Except as
               provided in the Investor Rights Agreements, other investor rights
               agreements with prior purchasers of the Company's stock and debt
               with options to purchase Company stock, the agreements with
               Swartz Equity Partners, LLC, the Company is not under any
               obligation to register under the 1933 Act, any of its currently
               outstanding securities or any securities issuable upon exercise
               or conversion of its currently outstanding options or warrants
               nor is the Company obligated to register or qualify any such
               securities under the securities laws of any state of the United
               States or to list any of its shares in any other

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               jurisdiction. To the best of the Company's knowledge, no voting
               or similar agreements exist related to the Company's securities
               which are presently outstanding or that may hereafter be issued.

4.       REPRESENTATIONS, WARRANTIES AND CERTAIN AGREEMENTS OF INVESTOR. The
         Investor hereby represents and warrants to, and agrees with, the
         Company that:

         4.1   AUTHORIZATION. This Agreement constitutes its valid and legally
               binding obligation, enforceable in accordance with its terms. The
               Investor represents that he has full power and authority to enter
               into this Agreement and any other agreements to which it is a
               party.

         4.2   PURCHASE FOR OWN ACCOUNT. The Common Stock to be purchased by
               such Investor hereunder will be acquired for investment for such
               Investor's own account, not as a nominee or agent, and not with a
               view to the public resale or distribution thereof, and such
               Investor has no present intention of selling, granting any
               participation in, or otherwise distributing the same. Investor
               also represents that Investor was not formed for the purpose of
               investing in Regulation S securities or formed for the purpose of
               investing in the Common Stock. Investor is not registered as an
               issuer under the 1933 Act and is not required to be registered
               with the U.S. Securities and Exchange Commission under the
               Investment Company Act of 1940, as amended.

         4.3   STATUS AS A NON-U.S. COMPANY. No offer to enter into this
               Agreement has been made by the Company to Investor in the United
               States. At the times of the offer and execution of this
               Agreement, Investor and all of its 10% or more equity owners, if
               any, were located and resided outside the United States.

         4.4   NO DIRECTED SELLING EFFORTS. Neither Investor, nor any of its
               affiliates, nor any person acting on its behalf or on behalf of
               any such affiliate, has engaged or will engage in any activity
               undertaken for the purpose of, or that reasonably could be
               expected to have the effect of, conditioning the markets in the
               United States for the Common Stock, including but not limited to
               effecting any sale or short sale of the Company's securities
               through Investor or any of its affiliates prior to the expiration
               of any restricted period contained in Regulation S (any such
               activity being defined herein as a "Directed Selling Effort"). To
               the best knowledge of the undersigned, this Agreement and the
               transactions contemplated herein are not part of a plan or scheme
               to evade the

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               registration provisions of the 1933 Act, and the Common Stock is
               being purchased for investment purposes by Investor. Investor
               agrees that all offers and sales of the Common Stock from the
               date hereof and through the expiration of the any restricted
               period set forth in Rule 903 of Regulation S (as the same may be
               amended from time to time hereafter) shall not be made to U.S.
               Persons or for the account or benefit of U.S. Persons and shall
               otherwise be made in compliance with the provisions of Regulation
               S and any other applicable provisions of the 1933 Act. Investor
               and its representatives have not conducted any Directed Selling
               Effort as that term is used and defined in Rule 902 of Regulation
               S and will not engage in any such Directed Selling Effort within
               the United States through the expiration of any restricted period
               set forth in Rule 903 of Regulation S.

         4.5   DISCLOSURE OF INFORMATION. The Investor believes he has received
               or has had full access to all the information he considers
               necessary or appropriate to make an informed investment decision
               with respect to the Common Stock to be purchased by the Investor
               under this Agreement. The Investor further has had an opportunity
               to ask questions and receive answers from the Company regarding
               the terms and conditions of the offering of the Common Stock and
               to obtain additional information (to the extent the Company
               possessed such information or could acquire it without
               unreasonable effort or expense) necessary to verify any
               information furnished to such Investor or to which the Investor
               had access. The foregoing, however, does not in any way limit or
               modify the representations and warranties made by the Company in
               Section 3. The Investor has not relied on any oral representation
               made by the Company or any officer, director or employee of the
               Company.

         4.6   INVESTMENT EXPERIENCE. The Investor understands that the purchase
               of the Common Stock involves substantial risk. The Investor (a)
               has experience as an investor in securities of companies in the
               development stage and acknowledges that the Investor can bear the
               economic risk of the Investor's investment in the Common Stock
               and has such knowledge and experience in financial or business
               matters that the Investor is capable of evaluating the merits and
               risks of this investment in the Common Stock and protecting his
               own interests in connection with this investment and/or (b) has a
               preexisting business relationship with the Company and certain of
               its officers, directors or controlling persons of a nature and
               duration that enables the Investor to be aware of the character,
               business acumen and financial circumstances of such persons.

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         4.7   ACCREDITED INVESTOR STATUS. The Investor is an "ACCREDITED
               INVESTOR" within the meaning of Regulation D promulgated under
               the 1933 Act.

         4.8   RESTRICTED SECURITIES. The Investor understands that the Common
               Stock is characterized as "RESTRICTED SECURITIES" under the 1933
               Act inasmuch as they are being acquired from the Company in a
               transaction not involving a public offering and that under the
               1933 Act and applicable regulations thereunder such securities
               may be resold without registration under the 1933 Act only in
               certain limited circumstances. In this connection, such Investor
               represents that the Investor is familiar with Rule 144 and
               Regulation S of the 1933 Act, and understands the resale
               limitations imposed thereby and by the 1933 Act. The Investor
               understands that the Company is under no obligation to register
               any of the securities sold hereunder except as provided in the
               Investor Rights Agreement.

         4.9   REGULATION S LIMITATIONS ON DISPOSITIONS. Investor acknowledges
               and agrees that it may not resell the Common Stock to a "U.S.
               person" as defined in Rule 902(k) of Regulation S, or within the
               United States, until the expiration of any restricted period
               provided by Rule 903 of Regulation S, and that following any
               restricted period the Common Stock may be resold to a U.S. person
               or within the United States only: (i) pursuant to a registration
               statement under the 1933 Act, or (ii) if applicable, pursuant to
               an exemption from such registration for sales by a person other
               than an issuer, underwriter, or dealer as those terms are used in
               Section 4(1) and related provisions of the 1933 Act and
               regulations thereunder or pursuant to another exemption from
               registration. Investor acknowledges that the Common Stock has not
               been registered under the 1933 Act or qualified under state
               securities laws of the United States and that the transferability
               hereof and thereof within the jurisdiction of the United States
               is restricted by the 1933 Act as well as such state laws.
               Investor acknowledges that the Common Stock is being sold in
               reliance upon the transaction exemption afforded by Regulation S
               in connection with an offshore offer and sale of securities of
               the Company not within or subject to the jurisdiction of the
               United States markets. Investor acknowledges it has received a
               copy of Regulation S, is familiar with and understands the terms
               thereof, and has had the opportunity to consult with its legal
               counsel concerning this Agreement and Regulation S.

               Investor acknowledges that if any transfer of the Common Stock is
               proposed to be made in reliance upon an exemption under the 1933
               Act, the Company

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               may require an opinion of counsel satisfactory to the Company
               that such transfer may be made pursuant to an applicable
               exemption under the 1933 Act. Investor acknowledges that, so long
               as appropriate, a legend similar to the following may appear on
               the certificates representing the Common Stock:

               THESE SHARES HAVE BEEN ISSUED PURSUANT TO AN EXEMPTION FROM
               REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
               PURSUANT TO REGULATION S THEREUNDER. THE SHARES EVIDENCED BY THIS
               CERTIFICATE CANNOT BE TRANSFERRED, OFFERED, OR SOLD IN THE UNITED
               STATES OR TO U.S. PERSONS (AS THAT TERM IS DEFINED IN REGULATION
               S) UNTIL ONE YEAR AFTER COMPLETION OF THE OFFERING.

         4.10  FURTHER LIMITATIONS ON DISPOSITION. Without in any way limiting
               the representations set forth above, the Investor further agrees
               not to make any disposition of all or any portion of the Common
               Stock except:

               (a)  pursuant to a registration statement under the 1933 Act
                    covering such disposition; or

               (b)  pursuant to an exemption from registration under the 1933
                    Act, including, without limitation, Rule 144, Rule 144A or
                    Regulation S thereunder.

         4.11  NO GENERAL SOLICITATION. Investor has not received any general
               solicitation or advertising regarding the offering of the Common
               Stock or this Agreement.

5.       CONDITIONS TO INVESTOR'S OBLIGATIONS AT CLOSING. The obligations of the
         Investor under Section 2 of this Agreement are subject to the
         fulfillment or waiver, on or before the Closing, of each of the
         following conditions:

         5.1   REPRESENTATIONS AND WARRANTIES TRUE. Each of the representations
               and warranties of the Company contained in Section 3 shall be
               true and complete on and as of the Closing with the same effect
               as though such representations and warranties had been made on
               and as of the date of the Closing.

         5.2   PERFORMANCE. The Company shall have performed and complied with
               all agreements, obligations and conditions contained in this
               Agreement that are required to be performed or complied with by
               it on or before the Closing and

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               shall have obtained all approvals, consents and qualifications
               necessary to complete the purchase and sale described herein.

         5.3   SECURITIES EXEMPTIONS. The offer and sale of the Common Stock to
               the Investor pursuant to this Agreement shall be exempt from the
               registration requirements of the 1933 Act.

         5.4   COMPLETION OF DUE DILIGENCE. The Investor shall have completed
               his legal and financial due diligence, the results of which shall
               be reasonably satisfactory to the Investor, and the Company shall
               have reasonably cooperated with the Investor in connection
               therewith.

         5.5   EXHIBITS. The Company shall be provided the completed Schedule of
               Exceptions to the Investor, the form and substance of which shall
               be acceptable to the Investor in its absolute and sole
               discretion.

6.       CONDITIONS TO THE COMPANY'S OBLIGATIONS AT CLOSING. The obligations of
         the Company to the Investor under this Agreement are subject to the
         fulfillment or waiver on or before the Closing of each of the following
         conditions by the Investor:

         6.1   REPRESENTATIONS AND WARRANTIES. The representations and
               warranties of the Investor contained in Section 4 shall be true
               and complete on the date of the Closing with the same effect as
               though such representations and warranties had been made on and
               as of the Closing.

         6.2   PAYMENT OF PURCHASE PRICE. The Investor shall have delivered to
               the Company the Purchase Price in accordance with the provisions
               of Section 2.

         6.3   SECURITIES EXEMPTIONS. The offer and sale of the Common Stock to
               the Investor pursuant to this Agreement shall be exempt from the
               registration requirements of the 1933 Act, and that prior to
               closing the Investor will deliver to the Company an executed
               Investment Letter in the form attached hereto as Exhibit B.

7.       POST-CLOSING COVENANTS.

         7.1   CONFIDENTIALITY.

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               (a)  The Investor acknowledges that the Company could be
                    irreparably damaged if confidential information concerning
                    the business and affairs of the Company were disclosed to or
                    utilized on behalf of any person. The Investor covenants and
                    agrees to and with the Company that, except as otherwise
                    provided in this Agreement, it will not, at any time,
                    directly or indirectly, without the prior written consent of
                    the Company, divulge, or permit any of its partners,
                    shareholders, directors, officers, employees or agents to
                    divulge to any person any non-public information concerning
                    the business or financial or other affairs, or any of the
                    methods of doing business used by the Company or any of its
                    subsidiaries, nor release any information provided pursuant
                    to or concerning this Agreement or any ancillary agreement
                    or the transactions contemplated by this Agreement or any
                    Ancillary Agreement if such release is intended for, or may
                    result in, its public dissemination. The foregoing
                    requirements of confidentiality shall not apply to
                    information: (i) that is now or in the future becomes freely
                    available to the public through no fault of or action by the
                    using or disclosing party; (ii) that is in the possession of
                    the using or disclosing party prior to the time such
                    information was obtained from the Company or that is
                    independently acquired by the using or disclosing party
                    without the aid, application or use of such other
                    information; (iii) that is obtained by the using or
                    disclosing party in good faith without knowledge of any
                    breach of a secrecy arrangement from a third party; (iv)
                    that is required to be disclosed by applicable law or order
                    of government agency or self-regulatory body; or (v) that is
                    disclosed in connection with any bona-fide offer to purchase
                    any shares in the Company; provided that the proposed
                    transferor obtains an undertaking from the proposed
                    transferee to keep such information confidential in
                    accordance with the provision of this Section 7.1 prior to
                    such disclosure.

               (b)  The Investor and the Company agree to consult with each
                    other (and to take into consideration any comments
                    reasonably raised by any such party) prior to the
                    dissemination of any press release or public communication
                    concerning this Agreement or any ancillary agreement or the
                    transactions contemplated by this Agreement or any ancillary
                    agreement. Any such press release or public communication
                    shall be subject to the approval of both the Company and the
                    Investor.

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               (c)  This Section 7.1 will survive termination of this Agreement.

         7.2   REGISTRATION RIGHTS. The Company agrees that the Common Stock
               purchased by Investor pursuant to this Purchase Agreement shall
               be included with any securities registered under the Investor
               Rights Agreements, subject to all terms and conditions set forth
               therein.

8.       GENERAL PROVISIONS.

         8.1   SURVIVAL OF WARRANTIES; INVESTIGATION. The representations,
               warranties and covenants of the Company and the Investor
               contained in or made pursuant to this Agreement shall survive the
               execution and delivery of this Agreement and the Closing. It
               shall be no defense to an action for breach of this Agreement
               that the Investor or its agents have (or have not) made
               investigations into the affairs of the Company or that the
               Company could not have known of the misrepresentation or breach
               of warranty. Damages for breach of a representation or warranty
               or other provision of this Agreement shall not be diminished by
               alleged tax savings resulting to the complaining party as a
               result of the loss complained of.

         8.2   SUCCESSORS AND ASSIGNS. The terms and conditions of this
               Agreement shall inure to the benefit of and be binding upon the
               respective successors and assigns of the parties, except that the
               Company may not assign or transfer any of its rights or
               obligations under this Agreement.

         8.3   GOVERNING LAW; JURISDICTION. Any dispute, disagreement, conflict
               of interpretation or claim arising out of or relating to this
               Agreement, or its enforcement, shall be governed by the laws of
               the State of New York. The Company and Investor hereby
               irrevocably and unconditionally submit, for themselves and their
               property, to the nonexclusive jurisdiction of the Supreme Court
               of the State of New York sitting in New York County and of the
               United States District Court of the Southern District of New
               York, and any appellate court from any thereof, in any action or
               proceeding arising out of or relating to this Agreement, or for
               recognition or enforcement of any judgment, and each of the
               parties hereto hereby irrevocably and unconditionally agrees that
               all claims in respect of any such action or proceeding may be
               heard and determined in such New York State or, to the extent
               permitted by law, in such Federal court. Each of the parties
               hereto agrees that a final judgment in any such action or
               proceeding shall be conclusive and may be enforced in other

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               jurisdictions by suit on the judgment or in any other manner
               provided by law. Each party hereby irrevocably and
               unconditionally waives, to the fullest extent it may legally and
               effectively do so, any objection which it may now or hereafter
               have to the laying of venue of any suit, action or proceeding
               arising out of or relating to this Agreement in any court
               referred to above. Each of the parties hereto hereby irrevocably
               waives, to the fullest extent permitted by law, the defense of an
               inconvenient forum to the maintenance of such action or
               proceeding in any such court. Each party to this Agreement
               irrevocably consents to service of process in the manner provided
               for notices below. Nothing in this Agreement will affect the
               right of any party to this Agreement to serve process in any
               other manner permitted by law. EACH PARTY HERETO HEREBY WAIVES,
               TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT
               MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR
               INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE
               TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT
               OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO
               REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS
               REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD
               NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING
               WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO
               HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER
               THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

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

         8.5   HEADINGS. The headings and captions used in this Agreement are
               used for convenience only and are not to be considered in
               construing or interpreting this Agreement. All references in this
               Agreement to sections, paragraphs, exhibits and schedules shall,
               unless otherwise provided, refer to sections and paragraphs
               hereof and exhibits and schedules attached hereto, all of which
               exhibits and schedules are incorporated herein by this reference.

         8.6   NOTICES. Any and all notices required or permitted to be given to
               a party pursuant to the provisions of this Agreement will be in
               writing and will be

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               effective and deemed to provide such party sufficient notice
               under this Agreement on the earliest of the following: (i) at the
               time of personal delivery, if delivery is in person; (ii) at the
               time of transmission by facsimile, addressed to the other party
               at its facsimile number specified herein (or hereafter modified
               by subsequent notice to the parties hereto), with confirmation of
               receipt made by both telephone and printed confirmation sheet
               verifying successful transmission of the facsimile; (iii) one (1)
               business day after deposit with an express overnight courier for
               deliveries within a country, or three (3) business days after
               such deposit for international deliveries or (iv) three (3)
               business days after deposit in mail by certified mail (return
               receipt requested) or equivalent for deliveries within a country.

               All notices for international delivery will be sent by facsimile
               or by express courier. All notices not delivered personally or by
               facsimile will be sent with postage and/or other charges prepaid
               and properly addressed to the party to be notified at the address
               or facsimile number indicated for such party, in the case of the
               Company, c/o Hecht & Associates, P.C., 60 East 42nd Street, Suite
               5101, New York, NY 10165-5101, Attention: Charles J. Hecht, Esq.
               or, in the case of the Investor, Bestler International Limited,
               Sea Meadow House, Blackburne Highway, P.O. Box 116, Road Town,
               Tortola, British Virgin Islands, or at such other address or
               facsimile number as such other party may designate by giving ten
               (10) days advance written notice by one of the indicated means of
               notice herein to the other parties hereto. Notices by facsimile
               shall be machine verified as received.

               Any party hereto (and such party's permitted assigns) may by
               notice so given change its address for future notices hereunder.
               Notice shall conclusively be deemed to have been given in the
               manner set forth above.

         8.7   COSTS, EXPENSES. Each party hereto shall bear its own costs in
               connection with the preparation, execution and delivery of this
               Agreement.

         8.8   AMENDMENTS AND WAIVERS. Any term of this Agreement may be amended
               and the observance of any term of this Agreement may be waived
               (either generally or in a particular instance and either
               retroactively or prospectively), only with the written consent of
               the Company and the Investor. No delay or omission to exercise
               any right, power, or remedy accruing to the Investor, upon any
               breach, default or noncompliance of the Company under this
               Agreement shall impair any such right, power, or remedy, nor
               shall it be

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               construed to be a waiver of any such breach, default or
               noncompliance, or any acquiescence therein, or of any similar
               breach, default or noncompliance thereafter occurring. All
               remedies, either under this Agreement, by law, or otherwise
               afforded to the Investor, shall be cumulative and not
               alternative.

         8.9   SEVERABILITY. If one or more provisions of this Agreement are
               held to be unenforceable under applicable law, such provision(s)
               shall be excluded from this Agreement and the balance of the
               Agreement shall be interpreted as if such provision(s) were so
               excluded and shall be enforceable in accordance with its terms.

         8.10  ENTIRE AGREEMENT. This Agreement, together with all exhibits and
               schedules hereto, constitutes the entire agreement and
               understanding of the parties with respect to the subject matter
               hereof and supersedes any and all prior negotiations,
               correspondence, agreements, understandings duties or obligations
               between the parties with respect to the subject matter hereof.

         8.11  FURTHER ASSURANCES. From and after the date of this Agreement,
               upon the request of the Investor or the Company, the Company and
               the Investor shall execute and deliver such instruments,
               documents or other writings as may be reasonably necessary or
               desirable to confirm and carry out and to effectuate fully the
               intent and purposes of this Agreement.

                                      -13-

<PAGE>

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

                                                THE COMPANY:

                                       TENGTU INTERNATIONAL CORP.

                                       By:______________________________
                                       Name:
                                       Title:

                                       BESTLER INTERNATIONAL LIMITED

                                       By:____________________________
                                       Name: Ms. Lianzhen Xia
                                       Title: President

                                      -14-

<PAGE>

                                    EXHIBIT A

                             SCHEDULE OF EXCEPTIONS
                             ----------------------

3.6      The Company has made a loan of $30,000 to Jing Lian, who serves as Vice
         President and a Director of the Company.

                                      -15-

<PAGE>

                                    EXHIBIT B

                                INVESTMENT LETTER
                                -----------------

                                      -16-

<PAGE>EXTENSION AGREEMENT

         This Extension Agreement (the "Agreement") is made and entered into as
of [_____], 2001 by and between Tengtu International Corp., a Delaware
corporation (the "Company") and [_____] (the "Investor").

         WHEREAS, the Investor, pursuant to a Stock Purchase Agreement (the
"Purchase Agreement"), an Escrow Agreement, a Registration Rights Agreement, an
Investment Letter and an Investor Questionnaire, each dated on or about [_____],
2001 (the "Transaction Documents"), made an equity investment in the Company;
and

         WHEREAS, the Investor now desires make an additional equity investment
in the Company;

         NOW, THEREFORE, the parties hereby agree as follows:

         The Company will issue and sell to Investor and Investor agrees to
purchase [_____] shares (the "Additional Shares") of the Company's Common Stock
at a price of US$1.23 cents per share, for a total purchase price of US$[_____]
(the "Purchase Price") pursuant to Regulation S promulgated under the 1933 Act.

         The Company and the Investor agree to extend the terms of the Purchase
Agreement and each of the Transaction Documents as they may apply to the
Additional Shares, including all representations and warranties therein as if
made on and as of the date hereof.

         Upon execution of this Agreement and delivery into escrow of the
Purchase Price, the Company will deliver to Investor original stock certificates
in Investor's name and in such denominations as Investor may specify.

                                       -1-

<PAGE>

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

                              TENGTU INTERNATIONAL CORP.

                              By:
                                 ----------------------------------------------
                              Name: PAK KWAN CHEUNG
                                   ---------------------------
                              Title:  CHIEF EXECUTIVE OFFICER AND CHAIRMAN OF
                                    -----------------------------------------
                                       THE BOARD OF DIRECTORS

                              INVESTOR

                              By:
                                 -----------------------------------------------
                              Name:
                                   ---------------------------------------------
                              Title:
                                    --------------------------------------------

                                       -2-

<PAGE>

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