Document:

EXHIBIT 4.1

                           CERTIFICATE OF DESIGNATIONS
                                       OF
                                 PREFERRED STOCK
                                       OF
                       CHINA CABLE AND COMMUNICATION, INC.

                                To Be Designated
                         8% Convertible Preferred Stock

                        Pursuant to Section 151(g) of the
                General Corporation Law of the State of Delaware

     The undersigned DO HEREBY CERTIFY that the following resolution was duly
adopted by the Board of Directors of China Cable and Communication, Inc., a
Delaware corporation (the "Corporation"), at a meeting duly convened and held,
at which a quorum was present and acting throughout:

     "RESOLVED, that pursuant to the authority conferred on the Board of
     Directors of the Corporation (the "Board of Directors") by the
     Corporation's Certificate of Incorporation, the issuance of a series of
     preferred stock, par value $.0001 per share, of the Corporation which shall
     consist of 2,758,621 shares of preferred stock be, and the same hereby is,
     authorized; and the Chief Executive Officer and Secretary or Assistant
     Secretary of the Corporation be, and they hereby are, authorized and
     directed to execute and file with the Secretary of State of the State of
     Delaware a Certificate of Designations of Preferred Stock of the
     Corporation fixing the designations, powers, preferences and rights of the
     shares of such series, and the qualifications, limitations or restrictions
     thereof (in addition to the designations, powers, preferences and rights,
     and the qualifications, limitations or restrictions thereof, set forth in
     the Certificate of Incorporation which may be applicable to the
     Corporation's preferred stock), as follows:

     1. Number of Shares; Designation. A total of 2,758,621 shares of preferred
     stock, par value $.0001 per share, of the Corporation are hereby designated
     as 8% Convertible Preferred Stock (the "Series"). Shares of the Series are
     being sold for a purchase price of $1.45 per share (the "Purchase Price")
     pursuant to the Securities Purchase Agreement dated September 24, 2003
     among the Corporation and the investors party thereto.

     2. Rank. The Series shall, with respect to payment of dividends, redemption
     payments and rights upon liquidation, dissolution or winding-up of the
     affairs of the Corporation, rank:

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          (i)  senior and prior to the Common Stock, par value $0.00001 per
               share, of the Corporation (the "Common Stock"), and any
               additional series of preferred stock which may in the future be
               issued by the Corporation and are designated in the amendment to
               the Certificate of Incorporation or the certificate of
               designations establishing such additional preferred stock as
               ranking junior to the shares of the Series. Any shares of the
               Corporation's capital stock which are junior to the shares of the
               Series with respect to the payment of dividends are hereinafter
               referred to as "Junior Dividend Shares" and any shares which are
               junior to the shares of the Series with respect to redemption,
               payment and rights upon liquidation, dissolution or winding-up of
               the affairs of the Corporation are hereinafter referred to as
               "Junior Liquidation Shares".

          (ii) Parri passu with any additional series of preferred stock which
               may in the future be issued by the Corporation and are designated
               in the amendment to the Certificate of Incorporation or the
               certificate of designations establishing such additional
               preferred stock as ranking equal to the shares of the Series or
               which do not state they are Junior Dividend Shares or Senior
               Dividend Shares (as defined below). Any shares of the
               Corporation's capital stock which are equal to the shares of the
               Series with respect to the payment of dividends are hereinafter
               referred to as "Parity Dividend Shares" and any shares which are
               equal to the shares of the Series with respect to redemption,
               payment and rights upon liquidation, dissolution or winding-up of
               the affairs of the Corporation are hereinafter referred to as
               "Parity Liquidation Shares".

          (iii) Junior to any additional series of preferred stock which may in
               the future be issued by the Corporation and are designated in the
               amendment to the Certificate of Incorporation or the certificate
               of designations establishing such additional preferred stock as
               ranking senior to the shares of the Series. Any shares of the
               Corporation's capital stock which are senior to the shares of the
               Series with respect to the payment of dividends are hereinafter
               referred to as "Senior Dividend Shares" and any shares which are
               senior to the shares of the Series with respect to redemption,
               payment and rights upon liquidation, dissolution or winding-up of
               the affairs of the Corporation are hereinafter referred to as
               "Senior Liquidation Shares".

     The Corporation may not issue additional shares of preferred stock which
     are not (a) Junior Stock (as defined in paragraph 3(c) below) or (b) both
     Parity Liquidation Shares and Parity Dividend Shares without the consent of
     the holders of a majority of the outstanding shares of the Series.

     3. Dividends. (a) The dividend rate on shares of the Series shall be 8.0%
     of the Purchase Price per share per annum. Dividends on shares of the
     Series shall be fully cumulative, accruing, without interest, from the date
     of original issuance of the Series through the date of redemption or
     conversion thereof, and shall be payable in arrears, when, as and if
     declared by the Board of Directors out of funds legally available for the
     payment of dividends, on September 30 and March 31 of each year, commencing
     March 31, 2004, except that if such date is not a business day then the

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     dividend shall be payable on the first immediately succeeding business day
     (as used herein, the term "business day" shall mean any day except a
     Saturday, Sunday or day on which banking institutions are legally
     authorized to close in Dallas, Texas) (each such period being hereinafter
     referred to as a "Dividend Period"). Dividends shall be payable in cash.
     Each dividend shall be paid to the holders of record of shares of the
     Series as they appear on the stock register of the Corporation on the
     record date, not less than 10 nor more than 60 days preceding the payment
     date thereof, as shall be fixed by the Board of Directors. Dividends
     payable for each Dividend Period shall be computed on the basis of a
     360-day year of twelve 30-day months and rounded to the nearest cent.
     Dividends on account of arrearages for any past Dividend Period may be
     declared and paid at any time, without reference to any regular dividend
     payment date, to holders of record on such date, not exceeding 45 days
     preceding the payment date thereof, as may be fixed by the Board of
     Directors of the Corporation. Dividends shall accrue regardless of whether
     the Corporation has earnings, whether there are funds legally available
     therefor and/or whether declared. No interest shall be payable with respect
     to any dividend payment that may be in arrears. Holders of shares of the
     Series called for redemption between the close of business on a dividend
     payment record date and the close of business on the corresponding dividend
     payment date shall, in lieu of receiving such dividend on the dividend
     payment date fixed therefor, receive such dividend payment on the date
     fixed for redemption together with all other accrued and unpaid dividends
     to the date fixed for redemption. The holders of shares of the Series shall
     not be entitled to any dividends other than the cash dividends provided for
     in this paragraph 3.

     (b) No dividends, except as described in the next succeeding sentence,
     shall be declared or paid or set apart for payment on any Parity Dividend
     Shares for any period unless full cumulative dividends have been or
     contemporaneously are declared and paid or declared and set aside for
     payment for all accrued dividends with respect to the Series through the
     most recent Dividend Period ending on or prior to the date of payment.
     Unless dividends accrued and payable but unpaid on shares of the Series and
     any Parity Dividend Shares at the time outstanding have been paid in full,
     all dividends declared by the Corporation upon shares of the Series or
     Parity Dividend Shares shall be declared pro rata with respect to all such
     shares, so that the amounts of any dividends declared on shares of the
     Series and the Parity Dividend Shares shall in all cases bear to each other
     the same ratio that, at the time of the declaration, all accrued but unpaid
     dividends on shares of the Series and the other Parity Dividend Shares,
     respectively, bear to each other.

     (c) If at any time the Corporation has failed to (x) pay or set apart for
     payment all accrued dividends on any shares of the Series through the then
     most recent Dividend Period and (y) set apart for payment an amount in cash
     equal to the scheduled dividend payments for each of the next two Dividend
     Periods, the Corporation shall not, and shall not permit any corporation or
     other entity directly or indirectly controlled by the Corporation to:

          (i)  declare or pay or set aside for payment any dividend or other
               distribution on or with respect to the Junior Dividend Shares,
               whether in cash, securities, obligations or otherwise (other than
               dividends or distributions paid in shares of capital stock of the
               Corporation ranking junior to shares of the Series both as to the

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               payment of dividends and as to rights in liquidation, dissolution
               or winding-up of the affairs of the Corporation ("Junior Stock"),
               or options, warrants or rights to subscribe for or purchase
               shares of Junior Stock); or

          (ii) redeem, purchase or otherwise acquire, or pay into, set apart
               money or make available for a sinking or other analogous fund for
               the redemption, purchase or other acquisition of, any shares of
               the Series (unless all of the shares of the Series are
               concurrently redeemed), Parity Dividend Shares, Parity
               Liquidation Shares or shares of Junior Stock for any
               consideration (except by conversion into or exchange for Junior
               Stock),

     unless, in each such case, all dividends accrued on shares of the Series
     through the most recent Dividend Period and on any Parity Dividend Shares
     have been or contemporaneously are declared and paid in full.

     (d) Any reference to "distribution" contained in this paragraph 3 shall not
     be deemed to include any distribution made in connection with any
     liquidation, dissolution or winding-up of the Corporation, whether
     voluntary or involuntary.

     4. Liquidation. (a) The liquidation value per share of shares of the
     Series, in case of the voluntary or involuntary liquidation, dissolution or
     winding-up of the affairs of the Corporation, shall be an amount equal to
     the Purchase Price, plus an amount equal to the cash value of dividends
     accrued and unpaid thereon, whether or not declared, to the payment date.

     (b) In the event of any voluntary or involuntary liquidation, dissolution
     or winding-up of the Corporation, the holders of shares of the Series (i)
     shall not be entitled to receive the liquidation value of the shares held
     by them until the liquidation value of all Senior Liquidation Shares shall
     have been paid in full, and (ii) shall be entitled to receive the
     liquidation value of such shares held by them in preference to and in
     priority over any distributions upon the Junior Liquidation Shares. Upon
     payment in full of the liquidation value to which the holders of shares of
     the Series are entitled, the holders of shares of the Series will not be
     entitled to any further participation in any distribution of assets by the
     Corporation. If the assets of the Corporation are not sufficient to pay in
     full the liquidation value payable to the holders of shares of the Series
     and the liquidation value payable to the holders of any Parity Liquidation
     Shares, the holders of all such shares shall share ratably in such
     distribution of assets in accordance with the amounts that would be payable
     on the distribution if the amounts to which the holders of shares of the
     Series and the holders of Parity Liquidation Shares are entitled were paid
     in full.

     (c) For purposes of this paragraph 4, (i) any acquisition of the
     Corporation by means of merger or other form of corporate reorganization in
     which outstanding capital stock of the Corporation are exchanged for
     securities or other consideration issued, or caused to be issued, by the
     acquiring entity or its subsidiary (other than a mere reincorporation
     transaction), or (ii) a sale of all or substantially all of the assets of
     the Corporation, shall be treated as a liquidation, dissolution or
     winding-up of the Corporation and shall entitle the holders of the Series

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     to receive at the closing in cash, securities or other property (valued as
     provided in paragraph 4(e) below) amounts as specified in paragraph 4(a)
     and (b) above.

     (d) Written notice of any liquidation, dissolution or winding-up of the
     Corporation, stating the payment date or dates when and the place or places
     where the amounts distributable in such circumstances shall be payable,
     shall be given by first class mail, postage prepaid, not less than 30 days
     prior to any payment date stated therein, to the holders of record of
     shares of the Series at their respective addresses as the same shall appear
     on the books of the transfer agent with respect to the Series.

         (e)      Whenever the distribution provided for in this paragraph 4
                  shall be payable in securities or property other than cash,
                  the value of such distribution shall be the fair market value
                  of such securities or other property as determined in good
                  faith by the Board of Directors.

     5. Optional Redemption. (a) Shares of the Series will be redeemable at the
     option of the Corporation, in whole or in part, from and after the time
     that (x) the first anniversary of the issuance of shares of the Series
     occurs, and (y) the Current Market Price for the Common Stock for a period
     of any 20 out of 30 consecutive trading days equals or exceeds 200% of the
     Conversion Price (as defined below) then in effect, and (z) the Common
     Stock underlying the Shares can be sold by the holder thereof without
     restriction on resale; provided, however, that prior to the last date (the
     "Final Registration Date") on which a registration statement is required to
     remain effective and available for use pursuant to that certain
     Registration Rights Agreement, dated September 24, 2003 (the "Registration
     Rights Agreement"), such registration statement is effective and available
     for use at all times during the period beginning thirty (30) days prior to
     the date of the redemption notice and ending on the earlier of the
     redemption date or the Final Registration Date, and is expected to remain
     effective and available for use until the earlier of thirty (30) days
     following the redemption date or the Final Registration Date. The
     redemption price will be payable in cash and equal to the Purchase Price,
     together with an amount equal to the dividends accrued and unpaid thereon,
     whether or not declared, to the redemption date. The aggregate payment to
     each holder of shares of the Series to be redeemed will be rounded to the
     nearest cent. Notwithstanding the foregoing, if the date fixed for
     redemption occurs after a record date for a dividend and prior to the
     corresponding payment date, such dividend shall be paid on the payment date
     and the amount payable with respect to each share of the Series redeemed
     shall not include the amount of the dividend to be so paid.

     (b) Not less than 60 nor more than 90 days prior to the date fixed for any
     redemption of shares of the Series pursuant to this paragraph 5, a notice
     of redemption shall be mailed by first class mail, postage prepaid, to each
     holder of shares of the Series to be redeemed at such holder's last address
     as it appears on the books of the transfer agent for the Series. Such
     notice shall state (i) that the Corporation has elected to redeem all or a
     portion of the shares of the Series, as specified in such notice, (ii) the
     redemption price, (iii) the redemption date, (iv) that, unless the
     Corporation defaults in the payment of the redemption price, all shares of
     the Series called for redemption shall cease to accrue dividends after the

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     redemption date and shall cease to be outstanding after such date, and (v)
     any other information required by applicable law to be included therein and
     any other procedures that a holder of shares of the Series must follow to
     receive payment for its redeemed shares. Neither failure to mail such
     notice, nor any defect therein or in the mailing thereof, to any particular
     holder shall affect the sufficiency of the notice or the validity of the
     proceedings for redemption with respect to any other holder. Any notice
     mailed in the manner herein provided shall be conclusively presumed to have
     been duly given whether or not the holder receives the notice. On or after
     the redemption date, each holder of shares of the Series to be redeemed
     shall present and surrender such holder's certificate or certificates for
     such shares to the Corporation at the place designated in the redemption
     notice and thereupon the redemption price of the shares shall be promptly
     paid to or on the order of the person whose name appears on such
     certificate or certificates as the owner thereof, and each surrendered
     certificate shall be canceled. In case less than all the shares represented
     by any such certificate are redeemed, a new certificate shall be issued to
     the holder representing the unredeemed shares of the Series.

     (c) If a notice of redemption has been given pursuant to this paragraph 5
     and if, on or before the date fixed for redemption, the funds necessary for
     such redemption shall have been set aside by the Corporation, separate and
     apart from its other funds, in trust for the pro rata benefit of the
     holders of the shares of the Series so called for redemption, then,
     notwithstanding that any certificates for such shares have not been
     surrendered for cancellation, on the redemption date dividends shall cease
     to accrue on the shares of the Series to be redeemed, and at the close of
     business on the redemption date the holders of such shares shall cease to
     be stockholders with respect to those shares, shall have no interest in or
     claims against the Corporation by virtue thereof and shall have no voting
     or other rights with respect thereto, except the right to receive the
     moneys payable upon such redemption, without interest thereon, upon
     surrender (and endorsement, if required by the Corporation) of their
     certificates, and the shares evidenced thereby shall no longer be
     outstanding. Subject to applicable escheat laws, any moneys so set aside by
     the Corporation and unclaimed at the end of two years from the redemption
     date shall revert to the Corporation, after which reversion the holders of
     such shares so called for redemption shall look only to the Corporation for
     the payment of the redemption price. Any interest accrued on funds so
     deposited shall be paid to the Corporation from time to time.

     (d) If a notice of redemption has been given pursuant to this paragraph 5,
     and any holder of shares of the Series shall, prior to the close of
     business on the date fixed for redemption, give written notice to the
     Corporation pursuant to paragraph 7 below of the conversion of any or all
     of the shares to be redeemed held by the holder, then such redemption shall
     not become effective as to such shares to be converted and such conversion
     shall become effective as provided in paragraph 7 below, whereupon any
     funds deposited by the Corporation, or on its behalf, with a payment agent
     or segregated and held in trust by the Corporation for the redemption of
     such shares shall (subject to any right of the holder of such shares to
     receive the dividend payable thereon as provided in paragraph 7 below)
     immediately upon such conversion be returned to the Corporation or, if then
     held in trust by the Corporation, shall be discharged from the trust.

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     (e) In every case of redemption of less than all of the outstanding shares
     of the Series pursuant to this paragraph 5, the shares to be redeemed shall
     be selected pro rata or by lot or in such other manner as the Board of
     Directors may determine, as may be prescribed by resolution of the Board of
     Directors of the Corporation, provided that only whole shares shall be
     selected for redemption. Notwithstanding the foregoing, the Corporation
     shall not redeem any of the shares of the Series at any time outstanding
     until all dividends accrued and in arrears upon all shares of the Series
     then outstanding shall have been paid for all past dividend periods.

     6. Mandatory Redemption. (a) The Corporation shall redeem, from any source
     of funds legally available therefor, all outstanding shares of the Series
     on the fifth anniversary of the date on which shares of the Series were
     first issued by the Corporation (the "Series Redemption Date"). The
     Corporation shall effect such redemption on the Series Redemption Date by
     paying in cash in exchange for the shares of the Series to be redeemed a
     sum equal to the Purchase Price of the Series (as adjusted for any stock
     dividends, combinations or splits with respect to such shares) plus all
     declared or accumulated but unpaid dividends on such shares.

     (b) In addition, upon the written request of any Holder from and after the
     time that the Current Market Price for the Common Stock for a period of any
     10 consecutive trading days is equal to or less than $0.70, the Corporation
     shall redeem, from any source of funds legally available therefor, all or
     any of the outstanding shares of the Series held by each such Holder. The
     Corporation shall effect such redemption by paying in cash in exchange for
     the shares of the Series to be redeemed a sum equal to $1.67 per share of
     the Series (as adjusted for any stock dividends, combinations or splits
     with respect to such shares) plus all declared or accumulated but unpaid
     dividends on such shares.

     7. Conversion. (a) Holders of shares of the Series will have the right,
     exercisable at any time after (x) the issuance by the Corporation of shares
     of the Series, and (y) prior to redemption of such shares (as described in
     paragraph 5), to convert, in whole or in part, shares of the Series into
     shares of Common Stock (calculated as to each conversion to the nearest
     1/100th of a share) at the conversion price in an amount equal to the
     Purchase Price of Common Stock, subject to adjustment as described below
     (the "Conversion Price"). The number of shares of Common Stock into which
     each share of the Series shall be convertible shall be determined by
     dividing the Purchase Price, subject to proportional adjustment to reflect
     any split or consolidation of the Common Stock or any dividend payable on
     the Common Stock in additional shares of Common Stock (the "Conversion
     Amount"), by the Conversion Price then in effect. In the case of shares of
     the Series called for redemption, conversion rights will expire at the
     close of business on the business day next preceding the redemption date.
     Upon conversion of shares of the Series, the Corporation will pay to the
     holder of the converted shares an amount equal to the dividends accrued but
     unpaid thereon through the date the notice of conversion is delivered to
     the Corporation. Such payment shall be made in cash. Notwithstanding the
     foregoing, holders of record of shares of the Series on a record date fixed
     for the payment of a dividend on such shares shall be entitled to receive
     the dividend notwithstanding the conversion of the shares prior to the
     dividend payment date. A share of the Series may not be converted in part.

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     (b) In order to exercise the conversion right, the holder of each share of
     the Series to be converted shall surrender the certificate representing
     such share, duly endorsed or assigned to the Corporation or in blank, at
     the office of the Corporation in Hong Kong (or such other address as the
     Corporation may designate) and shall give written notice to the Corporation
     in the form set forth on the reverse of the stock certificates for the
     shares of the Series that such holder elects to convert the shares
     represented by such certificate or a portion thereof. Such notice shall
     also state the name or names (with address) in which the certificate or
     certificates for the shares of Common Stock which shall be issuable upon
     such conversion shall be issued, and shall be accompanied by funds in an
     amount sufficient to pay any transfer or similar tax required by the
     provisions of paragraph 7(e) below. Each share surrendered for conversion
     shall, unless the shares issuable on conversion are to be issued in the
     same name as the name in which such share of the Series is registered, be
     duly endorsed by, or be accompanied by instruments of transfer (in each
     case, in form reasonably satisfactory to the Corporation), duly executed by
     the holder or such holder's duly authorized attorney-in-fact, with such
     signature guaranteed by a member of the STAMP medallion program.

     (c) As promptly as practicable after the surrender of certificates for
     shares of the Series for conversion and the receipt of such notice and
     funds, if any, as aforesaid, the Corporation shall issue and shall deliver
     to such holder, or on such holder's written order, a certificate or
     certificates for the number of shares of Common Stock issuable upon the
     conversion of such shares of the Series in accordance with the provisions
     of this paragraph 7, and a check or cash in respect of any fractional
     interest in respect of a share of Common Stock arising upon such
     conversion, as provided in paragraph 7(d) below. Each conversion with
     respect to any shares of the Series shall be deemed to have been effected
     immediately prior to the close of business on the date on which the
     certificates for shares of the Series shall have been surrendered
     (accompanied by the funds, if any, required by paragraph 7(e) below) and
     such notice and assignment, if any, shall have been received by the
     Corporation as aforesaid, and the person or persons entitled to receive the
     Common Stock issuable upon such conversion shall be deemed for all purposes
     to be the record holder or holders of such Common Stock upon that date.

     (d) No fractional shares of Common Stock or scrip representing fractional
     shares shall be issued upon conversion of shares of the Series. If more
     than one share of the Series shall be surrendered for conversion at one
     time by the same holder, the number of full shares of Common Stock issuable
     upon conversion thereof shall be computed on the basis of the aggregate
     number of shares of the Series so surrendered. Instead of any fractional
     share of Common Stock otherwise issuable upon conversion of any shares of
     the Series, the Corporation shall pay a cash adjustment in respect to such
     fraction in an amount equal to the same fraction of the Current Market
     Price of the Common Stock at the close of business on the day of
     conversion.

     (e) If a holder converts shares of the Series, the Corporation shall pay
     any and all documentary, stamp or similar issue or transfer tax payable in
     respect of the issue or delivery of the shares of the Series (or any other
     securities issued on account thereof pursuant hereto) or Common Stock upon
     the conversion; provided, however, the Corporation shall not be required to

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     pay any such tax that may be payable because any such shares are issued in
     a name other than the name of the holder.

     (f) The Corporation shall reserve out of its authorized but unissued Common
     Stock or its Common Stock held in treasury sufficient shares of Common
     Stock to permit the conversion of all of the outstanding shares of the
     Series. The Corporation shall from time to time, in accordance with the
     General Corporation Law of the State of Delaware, increase the authorized
     amount of its Common Stock if at any time the authorized amount of its
     Common Stock remaining unissued shall not be sufficient to permit the
     conversion of all shares of the Series at the time outstanding. If any
     shares of Common Stock required to be reserved for issuance upon conversion
     of shares of the Series hereunder require registration with or approval of
     any governmental authority under any federal or state law before the shares
     may be issued upon conversion, the Corporation shall in good faith and as
     expeditiously as possible endeavor to cause the shares to be so registered
     or approved. All shares of Common Stock delivered upon conversion of the
     shares of the Series will, upon delivery, be duly authorized and validly
     issued, fully paid and nonassessable, free from all taxes, liens and
     charges with respect to the issue thereof.

     (g) The Conversion Price shall be subject to adjustment from time to time
     as follows:

          (i)  In the event that the Corporation shall (A) pay a dividend or
               make a distribution, in shares of Common Stock, on any class of
               Capital Stock of the Corporation or any subsidiary which is not
               directly or indirectly wholly owned by the Corporation, (B) split
               or subdivide its outstanding Common Stock into a greater number
               of shares, or (C) combine its outstanding Common Stock into a
               smaller number of shares, then in each such case the Conversion
               Price in effect immediately prior thereto shall be adjusted so
               that the holder of each share of the Series thereafter
               surrendered for conversion shall be entitled to receive the
               number of shares of Common Stock that such holder would have
               owned or have been entitled to receive after the occurrence of
               any of the events described above had such share of the Series
               been converted immediately prior to the occurrence of such event.
               An adjustment made pursuant to this paragraph 7(g)(i) shall
               become effective immediately after the close of business on the
               record date in the case of a dividend or distribution (except as
               provided in paragraph 7(k) below) and shall become effective
               immediately after the close of business on the effective date in
               the case of such subdivision, split or combination, as the case
               may be. Any shares of Common Stock issuable in payment of a
               dividend shall be deemed to have been issued immediately prior to
               the close of business on the record date for such dividend for
               purposes of calculating the number of outstanding shares of
               Common Stock under clauses (ii) and (iii) below.

          (ii) In the event that the Corporation shall commit to issue or
               distribute Common Stock or issue rights, warrants, options or
               convertible or exchangeable securities entitling the holder
               thereof to subscribe for or purchase, convert into or exchange
               for Common Stock, in any such case at a price per share less than

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               the Current Market Price per share on the earliest of (i) the
               date the Corporation shall enter into a firm contract for such
               issuance or distribution, (ii) the record date for the
               determination of stockholders entitled to receive any such
               rights, warrants, options or convertible or exchangeable
               securities, if applicable, or (iii) the date of actual issuance
               or distribution of any such Common Stock or rights, warrants,
               options or convertible or exchangeable securities (provided that
               the issuance of Common Stock upon the exercise of rights,
               warrants, options or convertible or exchangeable securities will
               not cause an adjustment in the Conversion Price if no such
               adjustment would have been required at the time such right,
               warrant, option or convertible or exchangeable security was
               issued), then the Conversion Price in effect immediately prior to
               such earliest date shall be adjusted so that the Conversion Price
               shall equal the price determined by multiplying the Conversion
               Price in effect immediately prior to such earliest date by the
               fraction:

               (x)  whose numerator shall be the number of shares of Common
                    Stock outstanding on such date plus the number of shares
                    which the aggregate offering price of the total number of
                    shares so offered would purchase at such Current Market
                    Price (such amount, with respect to any such rights,
                    warrants, options or convertible or exchangeable securities,
                    determined by multiplying the total number of shares subject
                    thereto by the exercise price of such rights, warrants,
                    options or convertible or exchangeable securities and
                    dividing the product so obtained by the Current Market
                    Price), and

               (y)  whose denominator shall be the number of shares of Common
                    Stock outstanding on such date plus the number of additional
                    shares of Common Stock to be issued or distributed or
                    receivable upon exercise of any such right, warrant, option
                    or convertible or exchangeable security.

               Such adjustment shall be made successively whenever any such
               Common Stock, rights, warrants, options or convertible or
               exchangeable securities are issued or distributed. In determining
               whether any rights, warrants or options entitle the holders to
               subscribe for or purchase shares of Common Stock at less than
               such Current Market Price, and in determining the aggregate
               offering price of shares of Common Stock so issued or
               distributed, there shall be taken into account any consideration
               received by the Corporation for such Common Stock, rights,
               warrants, options, or convertible or exchangeable securities, the
               value of such consideration, if other than cash, to be determined
               by the Board of Directors, whose determination shall be
               conclusive and described in a certificate filed with the records
               of corporate proceedings of the Corporation. If any right,
               warrant, option or convertible or exchangeable security to
               purchase or acquire Common Stock, the issuance of which resulted

                                       10

<PAGE>

               in an adjustment in the Conversion Price pursuant to this
               subsection (g) shall expire and shall not have been exercised,
               the Conversion Price shall immediately upon such expiration be
               recomputed to the Conversion Price which would have been in
               effect had the adjustment of the Conversion Price made upon the
               issuance of such right, warrant, option or convertible or
               exchangeable security been made on the basis of offering for
               subscription, purchase or issuance, as the case may be, only of
               that number of shares of Common Stock actually purchased or
               issued upon the actual exercise of such right, warrant, option or
               convertible or exchangeable securities.

         (iii) No adjustment in the Conversion Price shall be required unless
               the adjustment would require an increase or decrease of at least
               1% in the Conversion Price then in effect; provided, however,
               that any adjustments that by reason of this paragraph 7(g)(iii)
               are not required to be made shall be carried forward and taken
               into account in any subsequent adjustment. All calculations under
               this paragraph 7(g) shall be made to the nearest cent or nearest
               1/100th of a share.

          (iv) Notwithstanding anything to the contrary set forth in this
               paragraph 7(g), no adjustment shall be made to the Conversion
               Price upon (A) the issuance of shares of Common Stock pursuant to
               any compensation or incentive plan for officers, directors,
               employees or consultants of the Corporation which plan has been
               approved by the Compensation Committee of the Board of Directors
               (or if there is no such committee then serving, by the majority
               vote of the Directors then serving who are not employees or
               officers of the Corporation, a 5% or greater stockholder of the
               Corporation or an officer, employee or Affiliate or Associate (as
               defined in paragraph 11 below) of any such 5% or greater
               stockholder) (unless the exercise price thereof is changed after
               the date hereof other than solely by operation of the
               anti-dilution provisions thereof or by the Compensation Committee
               of the Board of Directors or, if applicable, the Board of
               Directors and, if required by law, the stockholders of the
               Corporation as provided in this clause (A)), or (B) the issuance
               of Common Stock upon the conversion or exercise of the options,
               warrants or rights of the Corporation outstanding on September
               24, 2003, unless the conversion or exercise price thereof is
               changed after September 24, 2003 (other than solely by operation
               of the anti-dilution provisions thereof).

          (v)  The Corporation from time to time may reduce the Conversion Price
               by any amount for any period of time in the discretion of the
               Board of Directors. A voluntary reduction of the Conversion Price
               does not change or adjust the Conversion Price otherwise in
               effect for purposes of this paragraph 7(g).

          (vi) In the event that, at any time as a result of an adjustment made
               pursuant to paragraph 7(g)(i) through 7(g)(iii) above, the holder
               of any share of the Series thereafter surrendered for conversion
               shall become entitled to receive any shares of the Corporation
               other than shares of the Common Stock, thereafter the number of
               such other shares so receivable upon conversion of any share of
               the Series shall be subject to adjustment from time to time in a

                                       11

<PAGE>

               manner and on terms as nearly equivalent as practicable to the
               provisions with respect to the Common Stock contained in
               paragraphs 7(g)(i) through 7(g)(v) above, and the other
               provisions of this paragraph 7(g)(vi) with respect to the Common
               Stock shall apply on like terms to any such other shares.

          (h) In case of any reclassification of the Common Stock (other than in
          a transaction to which paragraph 7(g)(i) applies), any consolidation
          of the Corporation with, or merger of the Corporation into, any other
          entity, any merger of another entity into the Corporation (other than
          a merger that does not result in any reclassification, conversion,
          exchange or cancellation of outstanding shares of Common Stock of the
          Corporation), any sale or transfer of all or substantially all of the
          assets of the Corporation or any compulsory share exchange, pursuant
          to which share exchange the Common Stock is converted into other
          securities, cash or other property, then lawful provision shall be
          made as part of the terms of such transaction whereby the holder of
          each share of the Series then outstanding shall have the right
          thereafter, during the period such share shall be convertible, to
          convert such share only into the kind and amount of securities, cash
          and other property receivable upon the reclassification,
          consolidation, merger, sale, transfer or share exchange by a holder of
          the number of shares of Common Stock of the Corporation into which a
          share of the Series might have been converted immediately prior to the
          reclassification, consolidation, merger, sale, transfer or share
          exchange assuming that such holder of Common Stock failed to exercise
          rights of election, if any, as to the kind or amount of securities,
          cash or other property receivable upon consummation of such
          transaction, subject to adjustment as provided in paragraph 7(g) above
          following the date of consummation of such transaction. As a condition
          to any such transaction, the Corporation or the person formed by the
          consolidation or resulting from the merger or which acquires such
          assets or which acquires the Corporation's shares, as the case may be,
          shall make provisions in its certificate or articles of incorporation
          or other constituent document to establish such right. The certificate
          or articles of incorporation or other constituent document shall
          provide for adjustments which, for events subsequent to the effective
          date of the certificate or articles of incorporation or other
          constituent document, shall be as nearly equivalent as may be
          practicable to the adjustments provided for in this paragraph 7. The
          provisions of this paragraph 7(h) shall similarly apply to successive
          reclassifications, consolidations, mergers, sales, transfers or share
          exchanges.

          (i) If:

               (i)  the Corporation shall take any action which would require an
                    adjustment in the Conversion Price pursuant to Section 7(g);
                    or

               (ii) the Corporation shall authorize the granting to the holders
                    of its Common Stock generally of rights, warrants or options
                    to subscribe for or purchase any shares of any class or any
                    other rights, warrants or options; or

              (iii) there shall be any reclassification or change of the Common
                    Stock (other than a subdivision or combination of its
                    outstanding Common Stock or a change in par value) or any
                    consolidation, merger or statutory share exchange to which

                                       12

<PAGE>

                    the Corporation is a party and for which approval of any
                    stockholders of the Corporation is required, or the sale or
                    transfer of all or substantially all of the assets of the
                    Corporation; or

               (iv) there shall be a voluntary or involuntary dissolution,
                    liquidation or winding-up of the Corporation;

     then, the Corporation shall cause to be filed with the transfer agent for
     the Series and shall cause to be mailed to the holders of shares of the
     Series at their addresses as shown on the books of the transfer agent for
     the Series, as promptly as possible, but at least 30 days prior to the
     applicable date hereinafter specified, a notice stating (A) the date on
     which a record is to be taken for the purpose of such dividend,
     distribution or granting of rights, warrants or options or, if a record is
     not to be taken, the date as of which the holders of Common Stock of record
     to be entitled to such dividend, distribution or rights, warrants or
     options are to be determined, or (B) the date on which such
     reclassification, change, consolidation, merger, statutory share exchange,
     sale, transfer, dissolution, liquidation or winding-up is expected to
     become effective or occur, and the date as of which it is expected that
     holders of Common Stock of record shall be entitled to exchange their
     shares of Common Stock for securities or other property deliverable upon
     such reclassification, change, consolidation, merger, statutory share
     exchange, sale, transfer, dissolution, liquidation or winding-up. Failure
     to give such notice or any defect therein shall not affect the legality or
     validity of the proceedings described in this paragraph 7(i).

     (j) Whenever the Conversion Price is adjusted as herein provided, the
     Corporation shall promptly file with the transfer agent for the Series a
     certificate of an officer of the Corporation setting forth the Conversion
     Price after the adjustment and setting forth a brief statement of the facts
     requiring such adjustment and a computation thereof. The Corporation shall
     promptly cause a notice of the adjusted Conversion Price to be mailed to
     each registered holder of shares of the Series.

     (k) In any case in which paragraph 7(g) provides that an adjustment shall
     become effective immediately after a record date for an event and the date
     fixed for such adjustment pursuant to paragraph 7(g) occurs after such
     record date but before the occurrence of such event, the Corporation may
     defer until the actual occurrence of such event (i) issuing to the holder
     of any shares of the Series converted after such record date and before the
     occurrence of such event the additional shares of Common Stock issuable
     upon such conversion by reason of the adjustment required by such event
     over and above the Common Stock issuable upon such conversion before giving
     effect to such adjustment, and (ii) paying to such holder any amount in
     cash in lieu of any fraction pursuant to paragraph 7(d).

     (l) In case the Corporation shall take any action affecting the Common
     Stock, other than actions described in this paragraph 7, which in the
     opinion of the Board of Directors would materially adversely affect the
     conversion right of the holders of the shares of the Series, the Conversion
     Price may be adjusted, to the extent permitted by law, in such manner, if
     any, and at such time, as the Board of Directors may determine to be

                                       13

<PAGE>

     equitable in the circumstances; provided, however, that in no event shall
     the Board of Directors be required to take any such action.

     (m) The Corporation shall list the shares of Common Stock required to be
     delivered upon conversion of shares of the Series, prior to delivery, upon
     each national securities exchange or any similar system of automated
     dissemination of securities prices, if any, upon which the Common Stock is
     listed at the time of delivery.

     (n) The Corporation shall not effect any conversion of the Series, and no
     person who is a holder of shares of the Series shall have the right to
     convert its shares into Common Stock, to the extent that after giving
     effect to such conversion, such person (together with such person's
     Affiliates) would beneficially own in excess of 9.99% of the shares of the
     Common Stock outstanding immediately after giving effect to such
     conversion. For purposes of the foregoing sentence, the aggregate number of
     shares of Common Stock beneficially owned by such person and its Affiliates
     shall include, without limitation, the number of shares of Common Stock
     issuable upon conversion of the shares of the Series with respect to which
     the determination of such sentence is being made, but shall exclude shares
     of Common Stock which would be issuable upon (i) conversion of the
     remaining, unconverted shares of the Series beneficially owned by such
     person and its Affiliates, and (ii) exercise or conversion of the
     unexercised or unconverted portion of any other securities of the
     Corporation beneficially owned by such person and its Affiliates
     (including, without limitation, any debentures, convertible notes or
     convertible preferred stock or warrants) subject to a limitation on
     conversion or exercise analogous to the limitation contained herein. Except
     as set forth in the preceding sentence, for purposes of this paragraph,
     beneficial ownership shall be calculated in accordance with Section 13(d)
     of the Securities Exchange Act of 1934, as amended. For purposes of this
     paragraph 7(n), in determining the number of outstanding shares of Common
     Stock, a holder may rely on the number of outstanding shares of Common
     Stock as reflected in (A) the Corporation's most recent Form 10-Q, Form
     10-K or other public filing with the Securities and Exchange Commission, as
     the case may be, (B) a more recent public announcement by the Corporation,
     or (C) any other notice by the Corporation or its transfer agent setting
     forth the number of shares of Common Stock outstanding. For any reason at
     any time, upon the written or oral request of any holder of the Series, the
     Corporation shall within two business days confirm orally and in writing to
     such holder the number of shares of Common Stock then outstanding. In any
     case, the number of outstanding shares of Common Stock shall be determined
     after giving effect to the conversion or exercise of securities of the
     Corporation by such holder and its Affiliates since the date as of which
     such number of outstanding shares of Common Stock was reported. In
     effecting the conversion of shares of the Series, the Corporation shall be
     entitled to rely on a representation by the holder of such shares of the
     Series as to the number of shares that it beneficially owns for purposes of
     the above 9.99% limitation calculation.

     8. Status of Shares. All shares of the Series that are at any time redeemed
     or converted pursuant to paragraph 5, 6 or 7 above, and all shares of the
     Series that are otherwise reacquired by the Corporation and subsequently
     canceled by the Board of Directors, shall have the status of authorized but

                                       14

<PAGE>

     unissued shares of preferred stock, without designation as to series,
     subject to reissuance by the Board of Directors as shares of any one or
     more other series.

     9. Voting Rights. Each holder of shares of the Series shall be entitled to
     the number of votes equal to the number of shares of Common Stock into
     which such shares of the Series could be converted and shall have voting
     rights and powers equal to the voting rights and powers of the Common Stock
     (except as otherwise expressly provided herein or as required by law),
     voting together with the Common Stock as a single class and shall be
     entitled to notice of any stockholders' meeting in accordance with the
     Bylaws of the Corporation. Fractional votes shall not, however, be
     permitted and any fractional voting rights resulting from the above formula
     (after aggregating all shares into which shares of the Series held by each
     holder could be converted) shall be rounded to the nearest whole number
     (with one-half being rounded upward).

     10. Restrictions and Limitations. So long as any shares of the Series
     remain outstanding, the Corporation, shall not, without the vote or written
     consent by the holders of at least 51% of the then outstanding shares of
     the Series, voting together as a single class:

     (i)  Redeem, purchase or otherwise acquire for value (or pay into or set
          aside for a sinking fund for such purpose) any share or shares of
          preferred stock otherwise than by redemption in accordance with
          paragraph 5 or 6 hereof or by conversion in accordance with paragraph
          7 hereof;

     (ii) Redeem, purchase or otherwise acquire (or pay into or set aside for a
          sinking fund for such purpose), any of the Common Stock; provided,
          however, that this restriction shall not apply to the repurchase of
          shares of Common Stock form employees, officers, directors,
          consultants or other persons performing services for the Corporation
          or any subsidiary pursuant to agreements under which the Corporation
          has the option to repurchase such shares at cost or at cost plus
          interest at a rate not to exceed nine percent (9%) per annum upon the
          occurrence of certain events, such as the termination of employment;
          and provided further, that the total amount applied to the repurchase
          of shares of Common Stock shall not exceed $100,000 during any twelve
          month period; or

    (iii) Authorize or issue, or obligate itself to issue, any debt security,
          or otherwise incur indebtedness for borrowed money (other than (A) to
          a strategic investor in connection with a strategic commercial
          agreement or transaction as determined by the Independent Directors,
          (B) pursuant to a commercial borrowing, secured lending or lease
          financing transaction approved by the Independent Directors, or (c)
          pursuant to the acquisition of another corporation or entity by the
          Corporation by consolidation, merger, purchase of all or substantially
          all of the assets, or other reorganization).

     11. Certain Definitions. As used in this Certificate, the following terms
     shall have the following respective meanings:

                                       15

<PAGE>

     "Affiliate" of any specified person means any other person directly or
     indirectly controlling or controlled by or under common control with such
     specified person. For purposes of this definition, "control" when used with
     respect to any person means the power to direct the management and policies
     of such person, directly or indirectly, whether through the ownership of
     voting securities or otherwise; and the term "controlling" and "controlled"
     having meanings correlative to the foregoing.

     "Associate" of a person means (A) any corporation or organization, other
     than the Corporation or any subsidiary of the Corporation, of which the
     person is an officer or partner or is, directly or indirectly, the
     beneficial owner of 10% or more of any class of its equity securities; (B)
     any trust or estate in which the person has a substantial beneficial
     interest or as to which the person serves as trustee or in a similar
     fiduciary capacity; and (C) any relative or spouse of the person, or any
     relative of the spouse, who has the same home as the person or who is a
     director or officer of the person or any of its parents or subsidiaries.

     "Capital Stock" of any person or entity means any and all shares,
     interests, rights to purchase, warrants, options, participations or other
     equivalents of or interests in the common stock or preferred stock of such
     person or entity, including, without limitation, partnership and membership
     interests.

     "Current Market Price" means, when used with respect to any security as of
     any date, the volume weighted average price of such security on the ten
     (10) consecutive trading days immediately preceding such date as reported
     for consolidated transactions with respect to securities listed on the
     principal national securities exchange on which such security is listed or
     admitted to trading or, if such security is not listed or admitted to
     trading on any national securities exchange, the volume weighted average
     price of such security on the ten (10) consecutive trading days immediately
     preceding such date in the over-the-counter market, as reported by the
     National Association of Securities Dealers, Inc. Automated Quotations
     System or such other system then in use or, if such security is not quoted
     by any such organization, the volume weighted average price of such
     security as of the ten (10) consecutive trading days immediately preceding
     such date furnished by a New York Stock Exchange member firm selected by
     the Corporation, or if such security is not quoted by any such organization
     and no such New York Stock Exchange member firm is able to provide such
     prices, such price as is determined by the Independent Directors in good
     faith.

     "Independent Directors" means directors that (i) are not 5% or greater
     stockholders of the Corporation or the designee of any such stockholder;
     (ii) are not officers or employees of the Corporation, any of its
     subsidiaries or of a stockholder referred to above in clause (i); (iii) are
     not Related Persons; and (iv) do not have relationships that, in the
     opinion of the Board of Directors, would interfere with their exercise of
     independent judgment in carrying out the responsibilities of the directors.

     "Related Person" means an individual related to an officer, director or
     employee of the Corporation or any of its Affiliates which relation is by
     blood, marriage or adoption and not more remote than first cousin.

                                       16

<PAGE>

     IN WITNESS WHEREOF, the Corporation has caused this Certificate to be duly
     executed on its behalf by its undersigned Chief Executive Officer and
     attested to by its Secretary this 24th day of September, 2003.

                                      /s/ Raymond Kwan
                                          -------------------------------------
                                          Raymond Ying-Wai Kwan
                                          Chief Executive Officer

ATTEST:

----------------------------------
[NAME]
Secretary

                                       17EXHIBIT 10.1

                          SECURITIES PURCHASE AGREEMENT

                         Dated as of September 24, 2003

                                      among

                       CHINA CABLE AND COMMUNICATION, INC.

                                       and

                       THE PURCHASERS LISTED ON EXHIBIT A

<PAGE>

<TABLE>
<CAPTION>

                                                       TABLE OF CONTENTS

                                                                                                               Page
                                                                                                               ----

<S>                                                                                                              <C>
ARTICLE I Purchase and Sale of Preferred Stock and Warrants.......................................................1

         Section 1.1       Purchase and Sale of Preferred Stock and Warrants......................................1
         Section 1.2       Purchase Price and Closing.............................................................1
         Section 1.3       Warrants...............................................................................2
         Section 1.4       Conversion Shares and Warrant Shares...................................................2

ARTICLE II Representations and Warranties.........................................................................2

         Section 2.1       Representations and Warranties of the Company..........................................2
         Section 2.2       Representations and Warranties of the Purchasers......................................13

ARTICLE III Covenants 15

         Section 3.1       Disclosure of Transactions and Other Material Information.............................15
         Section 3.2       Registration and Listing..............................................................16
         Section 3.3       Inspection Rights.....................................................................16
         Section 3.4       Compliance with Laws..................................................................16
         Section 3.5       Keeping of Records and Books of Account...............................................16
         Section 3.6       Other Agreements......................................................................16
         Section 3.7       Reservation of Shares.................................................................16
         Section 3.8       Non-public Information................................................................17
         Section 3.9       Preemptive Rights.....................................................................17

ARTICLE IV Conditions 19

         Section 4.1       Conditions Precedent to the Obligation of the Company to Close and to
                           Sell the Shares and Warrants..........................................................19
         Section 4.2       Conditions Precedent to the Obligation of the Purchasers to Close and
                           to Purchase the Shares and Warrants...................................................19

ARTICLE V Certificate Legend.....................................................................................22

         Section 5.1       Legend................................................................................22

ARTICLE VI Termination...........................................................................................23

         Section 6.1       Termination by Mutual Consent.........................................................23
         Section 6.2       Effect of Termination.................................................................23

ARTICLE VII Indemnification......................................................................................23

         Section 7.1       General Indemnity.....................................................................23
         Section 7.2       Indemnification Procedure.............................................................24

ARTICLE VIII Miscellaneous.......................................................................................25

         Section 8.1       Fees and Expenses.....................................................................25
         Section 8.2       Specific Enforcement; Consent to Jurisdiction.........................................25
         Section 8.3       Entire Agreement; Amendment...........................................................26
         Section 8.4       Notices...............................................................................26

                                                                        i

<PAGE>

                                                        Table of Contents
                                                        -----------------
                                                           (continued)

                                                                                                                Page
                                                                                                                ----

         Section 8.5       Waivers...............................................................................27
         Section 8.6       Headings..............................................................................27
         Section 8.7       Successors and Assigns................................................................27
         Section 8.8       No Third Party Beneficiaries..........................................................27
         Section 8.9       Governing Law.........................................................................28
         Section 8.10      Survival..............................................................................28
         Section 8.11      Counterparts..........................................................................28
         Section 8.12      Publicity.............................................................................28
         Section 8.13      Severability..........................................................................28
         Section 8.14      Further Assurances....................................................................28

                                                              ii
</TABLE>

<PAGE>

                          SECURITIES PURCHASE AGREEMENT

     This SECURITIES PURCHASE AGREEMENT this ("Agreement"), dated as of
September 24, 2003, by and among China Cable and Communication, Inc., a Delaware
corporation (the "Company"), and the entities listed on Exhibit A hereto (each a
"Purchaser" and collectively, the "Purchasers"), for the purchase and sale to
the Purchasers of shares of the Company's 8% Convertible Preferred Stock, par
value $____ per share (the "Preferred Stock"), and warrants to purchase shares
of the Company's common stock, par value $.00001 per share (the "Common Stock").

     The parties hereto agree as follows:

                                   ARTICLE I

                Purchase and Sale of Preferred Stock and Warrants

     Section 1.1 Purchase and Sale of Preferred Stock and Warrants. Upon the
following terms and conditions, the Company shall issue and sell to the
Purchasers, and the Purchasers shall purchase from the Company, 2,758,621 shares
of Preferred Stock (the "Shares") at a price per share of $1.45 for an aggregate
purchase price of $4,000,000 (the "Purchase Price"), and warrants to purchase
shares of Common Stock, in substantially the form attached hereto as Exhibit B
(the "Warrants"). The Company and the Purchasers are executing and delivering
this Agreement in accordance with and in reliance upon the exemption from
securities registration afforded by Section 4(2) of the U.S. Securities Act of
1933, as amended, and the rules and regulations promulgated thereunder (the
"Securities Act"), including Regulation D ("Regulation D"), and/or upon such
other exemption from the registration requirements of the Securities Act as may
be available with respect to any or all of the investments to be made hereunder.
The Preferred Stock shall have such powers, preferences and rights, and the
qualifications, limitations or restrictions thereof, as set forth in the
Certificate of Designations of Preferred Stock attached hereto as Exhibit D,
subject to the applicable terms and conditions of this Agreement and the
Registration Rights Agreement (as defined below).

     Section 1.2 Purchase Price and Closing. The Company agrees to issue and
sell to the Purchasers and, in consideration of and in express reliance upon the
representations, warranties, covenants, terms and conditions of this Agreement,
the Purchasers, severally but not jointly, agree to purchase the number of
Shares and Warrants set forth opposite their respective names on Exhibit A. The
closing of the purchase and sale of the Shares and Warrants to be acquired by
the Purchasers from the Company under this Agreement shall take place at the
offices of the Company's legal counsel located at 1660 Lincoln Street, Suite
1900, Denver, Colorado 80264 (the "Closing") at 10:00 a.m., Mountain Time (i) on
or before September 25, 2003, provided, that all of the conditions set forth in
Article IV hereof and applicable to the Closing shall have been fulfilled or
waived in accordance herewith, or (ii) at such other time and place or on such
date as the Purchasers and the Company may agree upon (the "Closing Date").

                                       1

<PAGE>

     Section 1.3 Warrants. At the Closing, the Company shall issue to the
Purchasers Warrants to purchase an aggregate of 827,586 shares of Common Stock.
The Warrants shall be exercisable for five (5) years from the date of issuance
and shall have an initial exercise price equal to $2.18 per share.

     Section 1.4 Conversion Shares and Warrant Shares. The Company has
authorized and reserved and covenants to continue to reserve, free of preemptive
rights and other similar contractual rights of stockholders, out of its
authorized but unissued Common Stock or its Common Stock held in treasury, a
number of shares of Common Stock equal to the aggregate number of shares of
Common Stock necessary to effect the conversion of the Shares and the exercise
of the Warrants. The Company shall, from time to time, in accordance with the
Delaware General Corporation Law, increase the authorized amount of its Common
Stock if at any time the authorized amount of its Common Stock remaining
unissued shall not be sufficient to permit the conversion of all Shares at the
time outstanding, subject, however, to stockholder approval. If any shares of
Common Stock required to be reserved for issuance upon conversion of the Shares
or exercise of the Warrants hereunder require registration with or approval of
any governmental authority under any federal or state law before the shares may
be issued, the Company will cause the shares to be so registered and approved
subject to the provisions of the Registration Rights Agreement. All shares of
Common Stock delivered upon conversion of the Shares or exercise of the Warrants
shall, upon delivery, be duly authorized and validly issued, fully paid and
nonassessable, free from all taxes, liens and charges with respect to the issue
thereof. Any shares of Common Stock issuable upon conversion of the Shares (and
such shares when issued) are herein referred to as the "Conversion Shares". Any
shares of Common Stock issuable upon exercise of the Warrants (and such shares
when issued) are herein referred to as the "Warrant Shares". The Shares, the
Conversion Shares, the Warrants and the Warrant Shares are sometimes
collectively referred to herein as the "Securities".

                                   ARTICLE II

                         Representations and Warranties

     Section 2.1 Representations and Warranties of the Company. In order to
induce the Purchasers to enter into this Agreement and to purchase the Shares
and Warrants, the Company hereby makes the following representations and
warranties to the Purchasers:

     (a) Organization, Good Standing and Power. The Company is a corporation
duly incorporated, validly existing and in good standing under the laws of the
State of Delaware and has the requisite corporate power to own, lease and
operate its properties and assets and to conduct its business as it is now being
conducted except to the extent that any failure will not have a Material Adverse
Effect. The Company does not have any Subsidiaries (as defined in Section
2.1(g)) or own securities of any kind in any other entity, except as set forth
on Schedule 2.1(g) hereto. The Company and each such Subsidiary is duly
qualified as a foreign corporation to do business and is in good standing in
every jurisdiction in which the nature of the business conducted or property
owned by it makes such qualification necessary, except for any jurisdiction(s)
(alone or in the aggregate) in which the failure to be so qualified will not
have a Material Adverse Effect. For the purposes of this Agreement, "Material
Adverse Effect" means any adverse effect on the business, operations, assets,

                                       2

<PAGE>

prospects or financial condition of the Company or its Subsidiaries and which is
material to such entity or other entities controlling or controlled by such
entity or the Company or which is likely to materially hinder the performance by
the Company of its obligations hereunder and under the other Transaction
Documents (as defined in Section 2.1(b) hereof).

     (b) Authorization; Enforcement. The Company has the requisite corporate
power and authority to enter into and perform this Agreement, the Registration
Rights Agreement, the Warrants, and the other agreements and documents
contemplated hereby and thereby and executed by the Company or to which the
Company is party (collectively, the "Transaction Documents"), and to issue and
sell the Shares and the Warrants in accordance with the terms hereof. The
execution, delivery and performance of the Transaction Documents by the Company
and the consummation by it of the transactions contemplated thereby have been
duly and validly authorized by all necessary corporate action, and, except as
set forth in Schedule 2.1(b), no further consent or authorization of the Company
or its Board of Directors or stockholders is required. This Agreement has been
duly executed and delivered by the Company. The other Transaction Documents will
have been duly executed and delivered by the Company at the Closing. Each of the
Transaction Documents constitutes, or shall constitute when executed and
delivered, a valid and binding obligation of the Company enforceable against the
Company in accordance with its terms, except as such enforceability may be
limited by applicable bankruptcy, reorganization, moratorium, liquidation,
conservatorship, receivership or similar laws relating to, or affecting
generally the enforcement of, creditor's rights and remedies or by equitable
principles or remedies of general application.

     (c) Capitalization. The authorized capital stock of the Company and the
shares thereof currently issued and outstanding as of September 21, 2003 are set
forth on Schedule 2.1(c) hereto. All of the outstanding shares of the Company's
Common Stock and any other security of the Company have been duly and validly
authorized. Except as set forth on Schedule 2.1(c) hereto or in any Commission
Documents (as defined in Section 2.1(f) below), no shares of Common Stock or any
other security of the Company are entitled to preemptive rights or registration
rights and there are no outstanding options, warrants, scrip, rights to
subscribe to, call or commitments of any character whatsoever relating to, or
securities or rights convertible into, any shares of capital stock of the
Company. Furthermore, except as set forth on Schedule 2.1(c) hereto or in any
Commission Documents and except for the Transaction Documents, there are no
contracts, commitments, understandings, or arrangements by which the Company is
or may become bound to issue additional shares of the capital stock of the
Company or options, securities or rights convertible into shares of capital
stock of the Company. Except for customary transfer restrictions contained in
agreements entered into by the Company in order to sell restricted securities or
as provided on Schedule 2.1(c) hereto and except as disclosed in any Commission
Documents, the Company is not a party to or bound by any agreement or
understanding granting registration or anti-dilution rights to any person with
respect to any of its equity or debt securities. Except as set forth on Schedule
2.1(c) or in any Commission Documents, the Company is not a party to, and it has
no knowledge of, any agreement or understanding restricting the voting or
transfer of any shares of the capital stock of the Company. Except as set forth
on Schedule 2.1(c) hereto or in any Commission Documents, the offer and sale of
all capital stock, convertible securities, rights, warrants, or options of the

                                       3

<PAGE>

Company issued prior to the Closing complied with all applicable federal and
state securities laws, and to the best knowledge of the Company, no holder of
such securities has a right of rescission or has made or threatened to make a
claim for rescission or damages with respect thereto which could have a Material
Adverse Effect. The Company has furnished or made available to the Purchasers
true and correct copies of the Company's Certificate of Incorporation as in
effect on the date hereof (the "Certificate"), and the Company's Bylaws as in
effect on the date hereof (the "Bylaws").

     (d) Issuance of Securities. The Shares and the Warrants to be issued at the
Closing have been duly authorized by all necessary corporate action and, when
paid for or issued in accordance with the terms hereof, the Shares shall be
validly issued and outstanding, fully paid and nonassessable and free and clear
of all liens, encumbrances and rights of first refusal of any kind and the
holders shall be entitled to all rights accorded to a holder of Preferred Stock.
When the Conversion Shares are issued in accordance with the terms of the
Preferred Stock, such shares will be duly authorized by all necessary corporate
action and validly issued and outstanding, fully paid and nonassessable, free
and clear of all liens, encumbrances and rights of first refusal of any kind and
the holders shall be entitled to all rights accorded to a holder of Common
Stock. When the Warrant Shares are issued and paid for in accordance with the
terms of this Agreement and as set forth in the Warrants, such shares will be
duly authorized by all necessary corporate action and validly issued and
outstanding, fully paid and nonassessable, free and clear of all liens,
encumbrances and rights of first refusal of any kind and the holders shall be
entitled to all rights accorded to a holder of Common Stock.

     (e) No Conflicts. The execution, delivery and performance of the
Transaction Documents by the Company and the consummation by the Company of the
transactions contemplated hereby and thereby do not and will not (i) violate any
provision of the Certificate or Bylaws or any Subsidiary's comparable charter
documents, (ii) conflict with, or constitute a default (or an event which with
notice or lapse of time or both would become a default) under, or give to others
any rights of termination, amendment, acceleration or cancellation of, any
agreement, mortgage, deed of trust, indenture, note, bond, license, lease
agreement, instrument or obligation to which the Company or any of its
Subsidiaries is a party or by which the Company or any of its Subsidiaries'
respective properties or assets are bound, (iii) create or impose a lien,
mortgage, security interest, charge or encumbrance of any nature on any property
or asset of the Company or any of its Subsidiaries under any agreement or any
commitment to which the Company or any of its Subsidiaries is a party or by
which the Company or any of its Subsidiaries is bound or by which any of their
respective properties or assets are bound, or (iv) result in a violation of any
federal, state, local or foreign statute, rule, regulation, order, judgment or
decree (including federal and state securities laws and regulations) applicable
to the Company or any of its Subsidiaries or by which any property or asset of
the Company or any of its Subsidiaries is bound or affected, except, in all
cases other than violations pursuant to clauses (i) or (iv) (with respect to
federal and state securities laws) above, for such conflicts, defaults,
terminations, amendments, acceleration, cancellations and violations as would
not, individually or in the aggregate, have a Material Adverse Effect. The
business of the Company and its Subsidiaries is not being conducted in violation
of any laws, ordinances or regulations of any governmental entity, except for
possible violations which singularly or in the aggregate do not and will not
have a Material Adverse Effect. Neither the Company nor any of its Subsidiaries
is required under federal, state, foreign or local law, rule or regulation to

                                       4

<PAGE>

obtain any consent, authorization or order of, or make any filing or
registration with, any court or governmental agency in order for it to execute,
deliver or perform any of its obligations under the Transaction Documents or
issue and sell the Shares, the Conversion Shares, the Warrants or the Warrant
Shares in accordance with the terms hereof or thereof (other than any filings
which may be required to be made by the Company with the Securities and Exchange
Commission (the "Commission") or state securities administrators subsequent to
the Closing, or any registration statement which may be filed pursuant hereto or
thereto).

     (f) Commission Documents; Commission Filings; Financial Statements. The
Company files periodic reports with the Commission pursuant to Section 15(d) of
the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and,
except as disclosed on Schedule 2.1(f) hereto, since February 28, 2003, and with
respect to periods before that date based solely upon the representations
contained in the Share Exchange Agreement dated as of November, 2002 among the
Company, Martin Rifkin, William Rifkin, Sino Concept Enterprises, Limited, and
Kingston Global Co., Limited, as amended as of February 21, 2003 (the "Exchange
Agreement"), the Company has timely filed all reports, schedules, forms,
statements and other documents required to be filed by it with the Commission
pursuant to the reporting requirements of the Exchange Act, including material
filed pursuant to Section 13(a) or 15(d) of the Exchange Act (all of the
foregoing, including filings incorporated by reference therein, being referred
to herein as the "Commission Documents"). The Company has not provided to the
Purchasers any material non-public information or other information which,
according to applicable law, rule or regulation, should have been disclosed
publicly by the Company but which has not been so disclosed, other than with
respect to the transactions contemplated by this Agreement. At the time of its
filing, the Company's Form 10-QSB for the fiscal quarter ended June 30, 2003
(the "Form 10-Q") complied in all material respects with the requirements of the
Exchange Act and the rules and regulations of the Commission promulgated
thereunder and other federal, state and local laws, rules and regulations
applicable to such documents, and the Form 10-Q did not contain any untrue
statement of a material fact or omitted to state a material fact required to be
stated therein or necessary in order to make the statements therein, in light of
the circumstances under which they were made, not misleading. At the time of its
filing, the Company's Form 10-KSB for the fiscal year ended October 31, 2002
(the "Form 10-K") complied in all material respects with the requirements of the
Exchange Act and the rules and regulations of the Commission promulgated
thereunder and other federal, state and local laws, rules and regulations
applicable to such documents, and the Form 10-K did not contain any untrue
statement of a material fact or omitted to state a material fact required to be
stated therein or necessary in order to make the statements therein, in light of
the circumstances under which they were made, not misleading. As of their
respective dates, the financial statements of the Company included in the
Commission Documents complied as to form in all material respects with
applicable accounting requirements and the published rules and regulations of
the Commission or other applicable rules and regulations with respect thereto.
Such financial statements have been prepared in accordance with generally
accepted accounting principles ("GAAP") applied on a consistent basis during the
periods involved (except (i) as may be otherwise indicated in such financial
statements or the Notes thereto, or (ii) in the case of unaudited interim
statements, to the extent they may not include footnotes or may be condensed or
summary statements), and fairly present in all material respects the financial

                                       5

<PAGE>

position of the Company and its Subsidiaries as of the dates thereof and the
results of operations and cash flows for the periods then ended (subject, in the
case of unaudited statements, to normal year-end audit adjustments).

     (g) Subsidiaries. Schedule 2.1(g) hereto sets forth each Subsidiary of the
Company, showing the jurisdiction of its incorporation or organization and
showing the percentage of each person's ownership of the outstanding stock or
other interests of such Subsidiary. For the purposes of this Agreement,
"Subsidiary" shall mean any corporation or other entity of which at least a
majority of the securities or other ownership interest having ordinary voting
power (absolutely or contingently) for the election of directors or other
persons performing similar functions are at the time owned directly or
indirectly by the Company and/or any of its other Subsidiaries. All of the
outstanding shares of capital stock of each Subsidiary have been duly authorized
and validly issued, and are fully paid and nonassessable. There are no
outstanding preemptive, conversion or other rights, options, warrants or
agreements granted or issued by or binding upon any Subsidiary for the purchase
or acquisition of any shares of capital stock of any Subsidiary or any other
securities convertible into, exchangeable for or evidencing the rights to
subscribe for any shares of such capital stock. Neither the Company nor any
Subsidiary is subject to any obligation (contingent or otherwise) to repurchase
or otherwise acquire or retire any shares of the capital stock of any Subsidiary
or any convertible securities, rights, warrants or options of the type described
in the preceding sentence except as set forth on Schedule 2.1(g) hereto. Neither
the Company nor any Subsidiary is party to, nor has any knowledge of, any
agreement restricting the voting or transfer of any shares of the capital stock
of any Subsidiary.

     (h) No Material Adverse Change. Since June 30, 2003, the Company has not
experienced or suffered any Material Adverse Effect, except as disclosed on
Schedule 2.1(h) hereto.

     (i) No Undisclosed Liabilities. Except as disclosed on Schedule 2.1(i)
hereto, neither the Company nor any of its Subsidiaries has any liabilities,
obligations, claims or losses (whether liquidated or unliquidated, secured or
unsecured, absolute, accrued, contingent or otherwise) other than those
reflected on the balance sheet included in the Form 10-Q or incurred in the
ordinary course of the Company's or its Subsidiaries respective businesses since
June 30, 2003, and which, individually or in the aggregate, do not or would not
have a Material Adverse Effect on the Company or its Subsidiaries.

     (j) No Undisclosed Events or Circumstances. Since June 30, 2003, except as
disclosed on Schedule 2.1(j) hereto, no event or circumstance has occurred or
exists with respect to the Company or its Subsidiaries or their respective
businesses, properties, prospects, operations or financial condition, which,
under applicable law, rule or regulation, requires public disclosure or
announcement by the Company but which has not been so publicly announced or
disclosed.

     (k) Indebtedness. Schedule 2.1(k) hereto sets forth as of the date hereof
all outstanding secured and unsecured Indebtedness of the Company or any
Subsidiary, or for which the Company or any Subsidiary has commitments, which
Indebtedness is not disclosed in any Commission Documents. For the purposes of
this Agreement, "Indebtedness" shall mean (i) any liabilities for borrowed money

                                       6

<PAGE>

in excess of $100,000 (other than trade accounts payable incurred in the
ordinary course of business), (ii) all guaranties, endorsements and other
contingent obligations in respect of Indebtedness of others in excess of
$100,000, whether or not the same are or should be reflected in the Company's
balance sheet (or the Notes thereto), except guaranties by endorsement of
negotiable instruments for deposit or collection or similar transactions in the
ordinary course of business, and (iii) the present value of any lease payments
in excess of $100,000 due under leases required to be capitalized in accordance
with GAAP. Except as disclosed on Schedule 2.1(k) or in any Commission
Documents, neither the Company nor any Subsidiary is in default with respect to
any Indebtedness.

     (l) Title to Assets. Each of the Company and the Subsidiaries has good and
marketable title to all of its real and personal property, free and clear of any
mortgages, pledges, charges, liens, security interests or other encumbrances of
any nature whatsoever, except for those indicated on Schedule 2.1(l) hereto or
disclosed in any Commission Documents or such that, individually or in the
aggregate, do not have a Material Adverse Effect. All material leases of the
Company and each of its Subsidiaries are valid and subsisting and in full force
and effect.

     (m) Actions Pending. Except as set forth in the Commission Documents or
Schedule 2.1(m) hereto, there is no action, suit, claim, investigation,
arbitration, alternate dispute resolution proceeding or other proceeding pending
or, to the knowledge of the Company, threatened against the Company or any
Subsidiary which questions the validity of this Agreement or any of the other
Transaction Documents or any of the transactions contemplated hereby or thereby
or any action taken or to be taken pursuant hereto or thereto. Except as set
forth in any Commission Document or on Schedule 2.1(m) hereto: (i) there is no
action, suit, claim, investigation, arbitration, alternate dispute resolution
proceeding or other proceeding pending or, to the knowledge of the Company,
threatened against or involving the Company, any Subsidiary or any of their
respective properties or assets, which individually or in the aggregate, would
have a Material Adverse Effect, and (ii) there are no outstanding orders,
judgments, injunctions, awards or decrees of any court, arbitrator or
governmental or regulatory body against the Company or any Subsidiary or any
officers or directors of the Company or any Subsidiary in their capacities as
such, which individually, or in the aggregate, would have a Material Adverse
Effect.

     (n) Compliance with Law. The business of the Company and the Subsidiaries
has been and is presently being conducted in accordance with all applicable
federal, state and local governmental laws, rules, regulations and ordinances,
except as set forth in the Commission Documents or on Schedule 2.1(n) hereto or
such that, individually or in the aggregate, the noncompliance therewith would
not have a Material Adverse Effect. The Company and each of its Subsidiaries
have all franchises, permits, licenses, consents and other governmental or
regulatory authorizations and approvals necessary for the conduct of its
business as now being conducted by it unless the failure to possess such
franchises, permits, licenses, consents and other governmental or regulatory
authorizations and approvals, individually or in the aggregate, could not
reasonably be expected to have a Material Adverse Effect.

     (o) Taxes. Except as set forth on Schedule 2.1(o) hereto or disclosed in
the Commission Documents, the Company and each of the Subsidiaries has
accurately prepared and filed all federal, state and other tax returns required

                                       7

<PAGE>

by law to be filed by it, has paid or made provisions for the payment of all
taxes shown to be due and all additional assessments, and adequate provisions
have been and are reflected in the financial statements of the Company and the
Subsidiaries for all current taxes and other charges to which the Company or any
Subsidiary is subject and which are not currently due and payable. Except as
disclosed on Schedule 2.1(o) hereto, none of the federal income tax returns of
the Company or any Subsidiary have been audited by the Internal Revenue Service.
Except as disclosed in the Commission Documents, the Company has no knowledge of
any additional assessments, adjustments or contingent tax liability (whether
federal or state) of any nature whatsoever, whether pending or threatened
against the Company or any Subsidiary for any period, nor of any basis for any
such assessment, adjustment or contingency.

     (p) Certain Fees. Except as set forth on Schedule 2.1(p) hereto, the
Company has not employed any broker or finder or incurred any liability for any
brokerage or investment banking fees, commissions, finders' structuring fees,
financial advisory fees or other similar fees in connection with the Transaction
Documents.

     (q) Disclosure. To the best of the Company's knowledge, neither this
Agreement nor any other documents, certificates or instruments furnished to the
Purchasers by or on behalf of the Company or any Subsidiary in connection with
the transactions contemplated by this Agreement contains any untrue statement of
a material fact or omits to state a material fact necessary in order to make the
statements made herein or therein, in the light of the circumstances under which
they were made herein or therein, not misleading.

     (r) Intellectual Property. Schedule 2.1(r) contains a complete and correct
list of all patents, trademarks, domain names (whether or not registered) and
any patentable improvements or copyrightable derivative works thereof, websites
and intellectual property rights relating thereto, service marks, trade names,
copyrights, licenses and authorizations, and all rights with respect to the
foregoing held by the Company or any of its Subsidiaries (collectively, the
"Proprietary Rights"). The Company and each of the Subsidiaries owns or
possesses all the Proprietary Rights which are necessary for the conduct of its
business as now conducted without any conflict with the rights of others. Except
as disclosed in the Commission Documents or Schedule 2.1(r) hereto, (i) as of
the date of this Agreement, neither the Company nor any of its Subsidiaries has
received any written notice that any Proprietary Rights have been declared
unenforceable or otherwise invalid by any court or governmental agency, and (ii)
as of the date of this Agreement, there is, to the knowledge of the Company, no
material existing infringement, misuse or misappropriation of any Proprietary
Rights by others that could have a Material Adverse Effect. From June 30, 2003
to the date of this Agreement, neither the Company nor any of its Subsidiaries
has received any written notice alleging that the operation of the business of
the Company or any of its Subsidiaries infringes in any material respect upon
the intellectual property rights of others.

     (s) Environmental Compliance. Except as disclosed on Schedule 2.1(s) hereto
or the Commission Documents, the Company and each of its Subsidiaries have
obtained all material approvals, authorization, certificates, consents,
licenses, orders and permits or other similar authorizations of all governmental
authorities, or from any other person, that are required under any Environmental

                                       8

<PAGE>

Laws. Schedule 2.1(s) hereto sets forth all material permits, licenses and other
authorizations issued under any Environmental Laws to the Company or its
Subsidiaries. "Environmental Laws" shall mean all U.S. Federal or state laws
applicable to the Company or any of its Subsidiaries relating to the protection
of the environment including, without limitation, all requirements pertaining to
reporting, licensing, permitting, controlling, investigating or remediating
emissions, discharges, releases or threatened releases of hazardous substances,
chemical substances, pollutants, contaminants or toxic substances, materials or
wastes, whether solid, liquid or gaseous in nature, into the air, surface water,
groundwater or land, or relating to the manufacture, processing, distribution,
use, treatment, storage, disposal, transport or handling of hazardous
substances, chemical substances, pollutants, contaminants or toxic substances,
material or wastes, whether solid, liquid or gaseous in nature. Except as set
forth on Schedule 2.1(s) hereto, the Company has all necessary governmental
approvals required under all Environmental Laws and used in its business or in
the business of any of its Subsidiaries, except for such instances as would not
individually or in the aggregate have a Material Adverse Effect. The Company and
each of its Subsidiaries are also in compliance with all other limitations,
restrictions, conditions, standards, requirements, schedules and timetables
required or imposed under all Environmental Laws where non-compliance could have
a Material Adverse Effect. Except for such instances as would not individually
or in the aggregate have a Material Adverse Effect or as disclosed in the
Commission Documents, there are no past or present events, conditions,
circumstances, incidents, actions or omissions relating to or in any way
affecting the Company or its Subsidiaries that violate or may violate any
Environmental Law after the Closing or that may give rise to any Environmental
Liabilities, or otherwise form the basis of any claim, action, demand, suit,
proceeding, hearing, study or investigation (i) under any Environmental Law, or
(ii) based on or related to the manufacture, processing, distribution, use,
treatment, storage (including, without limitation, underground storage tanks),
disposal, transport or handling, or the emission, discharge, release or
threatened release of any hazardous substance. "Environmental Liabilities" means
all liabilities of a person (whether such liabilities are owed by such person to
governmental authorities, third parties or otherwise) currently in existence or
arising hereafter and which arise under or relate to any Environmental Law.

     (t) Books and Records; Internal Accounting Controls. The books, records and
documents of the Company and its Subsidiaries accurately reflect in all material
respects the information relating to the business of the Company and the
Subsidiaries, the location and collection of their assets, and the nature of all
transactions giving rise to the obligations or accounts receivable of the
Company or any Subsidiary. The Company and each of its Subsidiaries maintain a
system of internal accounting controls sufficient, in the judgment of the
Company's board of directors, to provide reasonable assurance that (i)
transactions are executed in accordance with management's general or specific
authorizations, (ii) transactions are recorded as necessary to permit
preparation of financial statements in conformity with GAAP and to maintain
asset accountability, (iii) access to assets is permitted only in accordance
with management's general or specific authorization, and (iv) the recorded
accountability for assets is compared with the existing assets at reasonable
intervals and appropriate actions are taken with respect to any differences.

     (u) Material Agreements. Except for the Transaction Documents or as set
forth on Schedule 2.1(u) hereto, or those that are included as exhibits to the
Commission Documents, neither the Company nor any Subsidiary is a party to any

                                       9

<PAGE>

written or oral contract, instrument, agreement, commitment, obligation, plan or
arrangement, a copy of which would be required to be filed with the Commission
if the Company or any Subsidiary were registering securities under the
Securities Act (collectively, "Material Agreements"). Except as set forth in the
Commission Documents or on Schedule 2.1(u) hereto, the Company and each
Subsidiary has in all material respects performed all the obligations required
to be performed by them to date under the foregoing agreements, have received no
notice of default and, to the best of the Company's knowledge, are not in
default under any Material Agreement now in effect, the result of which could
cause a Material Adverse Effect. No written or oral contract, instrument,
agreement (other than the Certificate of Designation with respect to the
Preferred Stock, this Agreement or any other Transaction Document(s)),
commitment, obligation (other than any obligation imposed by state law), plan or
arrangement of the Company or of any Subsidiary limits or shall limit the
payment of dividends on its Common Stock.

     (v) Transactions with Affiliates. Except as set forth on Schedule 2.1(v)
hereto or disclosed in any of the Commission Documents, there are no loans,
leases, agreements, contracts, royalty agreements, management contracts or
arrangements or other continuing transactions between (i) the Company, any
Subsidiary or any of their respective its customers or suppliers, on the one
hand, and (ii) on the other hand, any officer, employee, consultant or director
of the Company, or any of its Subsidiaries, or any person owning any capital
stock of the Company or any Subsidiary or any member of the immediate family of
such officer, employee, consultant, director or stockholder or any corporation
or other entity controlled by such officer, employee, consultant, director or
stockholder.

     (w) Securities Act of 1933. Assuming the accuracy and completeness of the
representations, warranties and covenants of the Purchasers contained herein,
the Company has complied and will comply with all applicable federal and state
securities laws in connection with the offer, issuance and sale of the Shares,
the Conversion Shares, the Warrants and the Warrant Shares hereunder. Neither
the Company nor anyone acting on its behalf, directly or indirectly, has or will
sell, offer to sell or solicit offers to buy any of the Securities, or similar
securities to, or solicit offers with respect thereto from, or enter into any
preliminary conversations or negotiations relating thereto with, any person, or
has taken or will take any action so as to require registration of the issuance
and sale of any of the Securities under the registration provisions of the
Securities Act and applicable state securities laws. Neither the Company nor any
of its affiliates, nor any person acting on its or their behalf, has engaged in
any form of general solicitation or general advertising (within the meaning of
Regulation D under the Securities Act) in connection with the offer or sale of
any of the Securities.

     (x) Governmental Approvals. Except as set forth on Schedule 2.1(x) hereto,
and except for the filing of any notice prior or subsequent to the Closing that
may be required under applicable state and/or federal securities laws (which if
required, shall be filed on a timely basis), no authorization, consent,
approval, license, exemption of, filing or registration with any court or
governmental department, commission, board, bureau, agency or instrumentality,
domestic or foreign, is or will be necessary for, or in connection with, the
execution or delivery of the Shares and the Warrants, or, except as set forth in
this Agreement or any other Transaction Document, for the performance by the
Company of its obligations under the Transaction Documents.

                                       10

<PAGE>

     (y) Employees. Neither the Company nor any Subsidiary has any collective
bargaining arrangements or agreements covering any of its employees. Except as
set forth in the Commission Documents or on Schedule 2.1(y) hereto, neither the
Company nor any Subsidiary has any employment contract, agreement regarding
proprietary information, non-competition agreement, non-solicitation agreement,
confidentiality agreement, or any other similar contract or restrictive
covenant, relating to the right of any officer, employee or consultant to be
employed or engaged by the Company or such Subsidiary. Since June 30, 2003, no
officer, consultant or key employee of the Company or any Subsidiary whose
termination, either individually or in the aggregate, could have a Material
Adverse Effect, has terminated or, to the knowledge of the Company, has any
present intention of terminating his or her employment or engagement with the
Company or any Subsidiary.

     (z) Absence of Certain Developments. Except as set forth in the Commission
Documents or on Schedule 2.1(z) hereto, since June 30, 2003, neither the Company
nor any Subsidiary has:

        (i) issued any stock, bonds or other corporate securities or any rights,
options or warrants with respect thereto;

        (ii) borrowed any amount or incurred or become subject to any
liabilities (absolute or contingent) except current liabilities incurred in the
ordinary course of business which are comparable in nature and amount to the
current liabilities incurred in the ordinary course of business during the
comparable portion of its prior fiscal year, as adjusted to reflect the current
nature and volume of the Company's or such Subsidiary's business;

        (iii) discharged or satisfied any material lien or encumbrance or paid a
material amount of any obligation or liability (absolute or contingent), other
than current liabilities paid in the ordinary course of business;

        (iv) declared or made any payment or distribution of cash or other
property to stockholders with respect to its stock, or purchased or redeemed, or
made any agreements so to purchase or redeem, any shares of its capital stock;

        (v) sold, assigned or transferred any other tangible assets, or canceled
any debts or claims, except in the ordinary course of business;

        (vi) sold, assigned or transferred any patent rights, trademarks, trade
names, copyrights, trade secrets or other intangible assets or intellectual
property rights, which sale, assignment or transfer has had a Material Adverse
Effect, or disclosed any proprietary confidential information to any person
except in the ordinary course of business or to the Purchasers or their
representatives;

                                       11

<PAGE>

        (vii) suffered any substantial losses or waived any rights of material
value, whether or not in the ordinary course of business, or suffered the loss
of any material amount of prospective business;

        (viii) made any changes in employee compensation except in the ordinary
course of business and consistent with past practices;

        (ix) made capital expenditures or commitments therefor that aggregate in
excess of $25,000;

        (x) entered into any other transaction other than in the ordinary course
of business, or entered into any other material transaction, whether or not in
the ordinary course of business;

        (xi) made charitable contributions or pledges in excess of $25,000;

        (xii) suffered any material damage, destruction or casualty loss,
whether or not covered by insurance;

        (xiii) experienced any material problems with labor or management in
connection with the terms and conditions of their employment; or

        (xiv) entered into an agreement, written or otherwise, to take any of
the foregoing actions.

     (aa) Use of Proceeds. Except as set forth on Schedule 2.1(aa), the proceeds
from the sale of the Shares and the Warrants will be used by the Company for
working capital purposes and, except as set forth on Schedule 2.1(aa), shall not
be used to repay any outstanding Indebtedness or any loans to any officer,
director, affiliate or insider of the Company.

     (bb) Public Utility Holding Company Act and Investment Company Act Status.
The Company is not a "holding company" or a "public utility company" as such
terms are defined in the Public Utility Holding Company Act of 1935, as amended.
The Company is not, and as a result of and immediately upon Closing will not be,
an "investment company" or a company "controlled" by an "investment company",
within the meaning of the Investment Company Act of 1940, as amended.

     (cc) ERISA. No liability to the Pension Benefit Guaranty Corporation has
been incurred with respect to any Plan by the Company or any of its Subsidiaries
which is or would cause a Material Adverse Effect. The execution and delivery of
this Agreement and the issue and sale of the Shares and the Warrants will not
involve any transaction which is subject to the prohibitions of Section 406 of
ERISA or in connection with which a tax could be imposed pursuant to Section
4975 of the Internal Revenue Code of 1986, as amended (the "Code"); provided
that, if any Purchaser, or any person or entity that owns a beneficial interest
in any Purchaser, is an "employee pension benefit plan" (within the meaning of
Section 3(2) of ERISA) with respect to which the Company is a "party in
interest" (within the meaning of Section 3(14) of ERISA), the requirements of

                                       12

<PAGE>

Sections 407(d)(5) and 408(e) of ERISA, if applicable, are met. As used in this
Section 2.1(cc), the term "Plan" shall mean an "employee pension benefit plan"
(as defined in Section 3 of ERISA) which is or has been established or
maintained, or to which contributions are or have been made, by the Company or
any Subsidiary or by any trade or business, whether or not incorporated, which,
together with the Company or any Subsidiary, is under common control, as
described in Section 414(b) or (c) of the Code.

     (dd) Sarbanes-Oxley. The Company is in compliance with any and all
applicable requirements of the Sarbanes-Oxley Act of 2002 that are effective as
of the date hereof, and any and all applicable rules and regulations promulgated
by the Commission thereunder that are effective as of the date hereof, except
where such noncompliance would not have, individually or in the aggregate, a
Material Adverse Effect.

     Section 2.2 Representations, Warranties and Covenants of the Purchasers.
Each of the Purchasers hereby makes the following representations, warranties
and covenants to and for the benefit of the Company with respect solely to
itself and not with respect to any other Purchaser:

     (a) Organization and Standing of the Purchasers. If the Purchaser is an
entity, such Purchaser is a corporation, limited liability company or
partnership duly incorporated or organized, validly existing and in good
standing under the laws of the jurisdiction of its incorporation or
organization.

     (b) Authorization and Power. Each Purchaser has the requisite power and
authority to enter into and perform this Agreement, the Registration Rights
Agreement, the Warrants, and the other agreements and documents contemplated
hereby and thereby and executed by the Purchaser or to which the Purchaser is
party (collectively, the "Purchaser Transaction Documents") and to purchase the
Shares and Warrants being sold to it hereunder. The execution, delivery and
performance of the Purchaser Transaction Documents by each Purchaser and the
consummation by it of the transactions contemplated hereby have been duly
authorized by all necessary corporate or partnership action, and no further
consent or authorization of such Purchaser or its Board of Directors,
stockholders, or partners, as the case may be, is required. This Agreement has
been duly authorized, executed and delivered by each Purchaser. Each of the
Purchaser Transaction Documents constitutes, or shall constitute when executed
and delivered, valid and binding obligations of each Purchaser enforceable
against such Purchaser in accordance with its terms, except as such
enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium, liquidation, conservatorship, receivership or
similar laws relating to, or affecting generally the enforcement of, creditor's
rights and remedies or by equitable principles or remedies of general
application.

     (c) Acquisition for Investment. Each Purchaser is purchasing the Shares and
acquiring the Warrants solely for its own account for the purpose of investment
and not with a view to or for sale in connection with any distribution thereof.
Each Purchaser does not have a present intention to sell any of the Securities,
nor a present arrangement (whether or not legally binding) or intention to
effect any distribution of any of the Securities to or through any person or
entity; provided, however, that by making the representations herein and subject
to Section 2.2(e) below, each Purchaser does not agree to hold any of the

                                       13

<PAGE>

Securities for any minimum or other specific term and reserves the right to
dispose of any of the Securities at any time in accordance with federal and
state securities laws applicable to such disposition provided that the Company
receives an opinion of the Purchaser's counsel, which opinion and counsel shall
be reasonably satisfactory to the Company, to the effect that such disposition
complies with such laws. Each Purchaser acknowledges that it (i) has such
knowledge and experience in financial and business matters such that such
Purchaser is capable of evaluating the merits and risks of its investment in the
Company, (ii) is able to bear the financial risks associated with an investment
in the Securities, and (iii) has been given full access to such records of the
Company and the Subsidiaries and to the officers of the Company and the
Subsidiaries as it has deemed necessary or appropriate to conduct its due
diligence investigation.

     (d) Rule 144. Each Purchaser understands that the Securities must be held
indefinitely unless such Securities are registered under the Securities Act or
an exemption from registration is available. Each Purchaser acknowledges that it
is familiar with Rule 144 of the rules and regulations of the Commission, as
amended, promulgated pursuant to the Securities Act ("Rule 144"), and that such
Purchaser has been advised that Rule 144 permits resales only under certain
circumstances. Each Purchaser understands that to the extent that Rule 144 is
not available, such Purchaser will be unable to sell any Securities without
either registration under the Securities Act or the existence of another
exemption from such registration requirement, provided that the Company receives
an opinion of Purchaser's counsel, which opinion and counsel shall be reasonably
satisfactory to the Company, to the effect that such sale is exempt from such
registration requirement.

     (e) General. Each Purchaser understands that the Securities are being
offered and sold in reliance on a transactional exemption from the registration
requirements of federal and state securities laws and the Company is relying
upon the truth, accuracy and completeness of the representations, warranties,
agreements, acknowledgments and understandings of such Purchaser set forth
herein and in the other Purchaser Transaction Documents in order to determine
the applicability of such exemptions and the suitability of such Purchaser to
acquire the Securities. Each Purchaser understands that no United States federal
or state agency or any government or governmental agency has passed upon or made
any recommendation or endorsement with respect to any of the Securities.

     (f) Opportunities for Additional Information. Each Purchaser acknowledges
that such Purchaser has had the opportunity to ask questions of and receive
answers from, or obtain additional information from, the executive officers of
the Company concerning the financial and other affairs of the Company, and to
the extent deemed necessary by such Purchaser in light of such Purchaser's
personal knowledge of the Company's affairs, such Purchaser has asked such
questions and received answers to the full satisfaction of such Purchaser, and
such Purchaser desires to invest in the Company.

     (g) No General Solicitation. Each Purchaser acknowledges that the
Securities were not offered to such Purchaser by means of any form of general or
public solicitation or general advertising, or publicly disseminated
advertisements or sales literature, including (i) any advertisement, article,
notice or other communication published in any newspaper, magazine, or similar

                                       14

<PAGE>

media, or broadcast over television or radio, or (ii) any seminar or meeting to
which such Purchaser was invited by any of the foregoing means of
communications.

     (h) Accredited Investor. Each Purchaser is an accredited investor (as
defined in Rule 501 of Regulation D), and such Purchaser has such experience in
business and financial matters that it is capable of evaluating the merits and
risks of an investment in the Securities. Each Purchaser acknowledges that an
investment in the Securities is speculative and involves a high degree of risk.

     (i) Dispositions. No Purchaser will, prior to the effectiveness of the
Registration Statement (as defined in the Registration Rights Agreement), if
then prohibited by law or regulation, sell, offer to sell, solicit offers to
buy, dispose of, loan, pledge or grant any right with respect to the Securities.
Without limiting the generality of the foregoing, no Purchaser will, prior to
the effectiveness of the Registration Statement, sell any of the Securities
short "against the box".

                                  ARTICLE III

                                    Covenants

     The Company covenants with each Purchaser as follows, which covenants are
for the benefit of each Purchaser and their respective permitted assignees.

        Section 3.1 Disclosure of Transactions and Other Material Information.
On or before 8:30 a.m., New York City time, on or before the business day
immediately following the Closing Date, the Company shall file a Current Report
on Form 8-K with the Commission describing the terms of the transactions
contemplated by the Transaction Documents and including as exhibits to such
Current Report on Form 8-K this Agreement, the Warrants and the Registration
Rights Agreement, and the schedules hereto and thereto in the form required by
the Exchange Act (including all attachments, the "8-K Filing"). The Company
shall not, and shall cause each of its Subsidiaries and its and each of their
respective officers, directors, employees and agents not to, provide the
Purchaser with any material, nonpublic information regarding the Company or any
of its Subsidiaries from and after the filing of the 8-K Filing with the
Commission without the express written consent of the Purchaser. Neither the
Company nor the Purchaser shall issue any press releases or any other public
statements with respect to the transactions contemplated hereby; provided,
however, that the Company shall be entitled, without the prior approval of the
Purchaser, to make any press release or other public disclosure with respect to
such transactions (i) in substantial conformity with the 8-K Filing and
contemporaneously therewith, and (ii) as is required by applicable law and
regulations (provided that in the case of clause (i) above, the Purchaser shall
be consulted by the Company (although the consent of the Purchaser shall not be
required) in connection with any such press release or other public disclosure
prior to its release).

        Section 3.2 Registration and Listing. The Company will cause its Common
Stock to be registered under Section 12(b) or 12(g) of the Exchange Act within
60 days after the Closing, will comply in all respects with its reporting and
filing obligations under the Exchange Act, will comply with all requirements

                                       15

<PAGE>

related to any registration statement filed pursuant to this Agreement, and will
not take any action or file any document (whether or not permitted by the
Securities Act or the rules promulgated thereunder) to terminate or suspend such
registration or to terminate or suspend its reporting and filing obligations
under the Exchange Act or Securities Act, except as permitted herein. The
Company will promptly file the "Listing Application" for, or in connection with,
the issuance and delivery of the Conversion Shares and the Warrant Shares.

        Section 3.3 Inspection Rights. In the event the Registration Statement
is not effective, has been suspended or is otherwise no longer effective, the
Company shall permit, during normal business hours and upon reasonable request
and reasonable notice, a Purchaser or any employees, agents or representatives
thereof that are parties to an effective confidentiality agreement with the
Company of appropriate scope, so long as a Purchaser shall be obligated
hereunder to purchase the Shares or shall beneficially own the Shares or
Conversion Shares, or shall own Warrant Shares or the Warrants which, in the
aggregate, represent more than two percent (2%) of the total combined voting
power of all voting securities then outstanding, to examine and make reasonable
copies of and extracts from the records and books of account of, and visit and
inspect, during the term of the Warrants, the properties, assets, operations and
business of the Company and any Subsidiary, and to discuss the affairs, finances
and accounts of the Company and any Subsidiary with any of its officers,
consultants, directors, and key employees.

        Section 3.4 Compliance with Laws. The Company shall comply, and cause
each Subsidiary to comply, with all applicable laws, rules, regulations and
orders, the noncompliance with which could have a Material Adverse Effect.

        Section 3.5 Keeping of Records and Books of Account. The Company shall
keep and cause each Subsidiary to keep adequate records and books of account, in
which complete entries will be made in accordance with GAAP consistently
applied.

        Section 3.6 Other Agreements. The Company shall not enter into any
agreement containing any provision that would violate the terms of, or cause a
default under, any material term of any Transaction Document.

        Section 3.7 Reservation of Shares. So long as the Shares or Warrants
remain outstanding, the Company shall take all action necessary to at all times
have authorized, and reserved for the purpose of issuance, the maximum number of
shares of Common Stock to effect the conversion of the Shares and the exercise
of the Warrants.

        Section 3.8 Non-public Information. Neither the Company nor any of its
officers or agents shall disclose any material non-public information about the
Company to the Purchasers, and neither the Purchasers nor any of their
affiliates, officers or agents will solicit any material non-public information
from the Company.

        Section 3.9 Preemptive Rights.

        (a) Until the first anniversary of the Closing Date, the Company hereby
grants to each Purchaser or its assigns that owns any Shares (any Purchaser, for
such purpose, an "Eligible Purchaser"), a right (the "Preemptive Right") to

                                       16

<PAGE>

purchase all or any part of such Eligible Purchaser's pro rata share of any "New
Securities" (as defined in Section 3.9(b)) that the Company may, from time to
time, propose to sell and issue. The pro rata share for each Eligible Purchaser,
for purposes of the Preemptive Right, is the ratio of (x) the number of shares
of Common Stock then held by such Eligible Purchaser immediately prior to the
issuance of the New Securities (assuming the full conversion of the Shares and
the full exercise of the Warrants), to (y) the total number of shares of Common
Stock of the Company outstanding immediately prior to the issuance of the New
Securities (after giving effect to the full conversion of the Shares and the
full exercise of the Warrants).

        (b) For purposes of this Section 3.9, "New Securities" shall mean any
Common Stock or Preferred Stock of the Company, whether or not authorized on the
date hereof, and rights, options or warrants to purchase Common Stock or
Preferred Stock and securities of any type whatsoever that are, or may become,
convertible into Common Stock or Preferred Stock; provided, however, that "New
Securities" does not include the following:

            (i) shares of capital stock of the Company issuable upon conversion
or exercise of any currently outstanding securities or any Shares, Warrants or
New Securities issued in accordance with this Agreement (including the Warrant
Shares);

            (ii) shares or options or warrants for Common Stock granted to
officers, directors and employees of, and consultants to, the Company pursuant
to stock option or purchase plans or other compensatory agreements approved by
the Compensation Committee of the Board of Directors;

            (iii) shares of Common Stock or Preferred Stock issued in connection
with any pro rata stock split or stock dividend in respect of any series or
class of capital stock of the Company or recapitalization by the Company;

            (iv) shares of capital stock, or options or warrants to purchase
capital stock, issued to a strategic investor in connection with a strategic
commercial agreement as determined by the Board of Directors;

            (v) shares of capital stock, or options or warrants to purchase
capital stock, issued pursuant to commercial borrowing, secured lending or lease
financing transaction approved by the Board of Directors;

            (vi) shares of capital stock, or options or warrants to purchase
capital stock, issued pursuant to the acquisition of an interest in Beijing
Haidan Cable Television Network Information Co. Ltd. and the acquisition of
another corporation or entity by the Company by consolidation, merger, purchase
of all or substantially all of the assets, or other reorganization in which the
Company acquires, in a single transaction or series of related transactions, all
or substantially all of the assets of such other corporation or entity or fifty
percent (50%) or more of the voting power of such other corporation or entity or
fifty percent (50%) or more of the equity ownership of such other corporation or
entity;

                                       17

<PAGE>

            (vii) shares of capital stock issued in an underwritten public
securities offering pursuant to a registration statement filed under the
Securities Act;

            (viii) shares of capital stock, or options or warrants to purchase
capital stock, issued to current or prospective customers or suppliers of the
Company approved by the Board of Directors as compensation or accommodation in
lieu of other payment, compensation or accommodation to such customer or
supplier;

            (ix) shares of capital stock, or warrants to purchase capital stock,
issued to any person or entity that provides services to the Company as
compensation therefor pursuant to an agreement approved by the Board of
Directors;

            (x) shares of capital stock, or options or warrants to purchase
capital stock, offered in a transaction where purchase of such securities by any
Purchaser would cause such transaction to fail to comply with applicable federal
or state securities laws or would cause an applicable registration or
qualification exemption to fail to be available to the Company; provided,
however, that this clause

            (x) shall apply only to the Purchaser or Purchasers who would cause
any such failure, and not to any of the other Purchasers; (xi) securities
issuable upon conversion or exercise of the securities set forth in paragraphs
(i) - (x) above.

In the event that the Company proposes to undertake an issuance of New
Securities, it shall give each Eligible Purchaser written notice (the "Notice")
of its intention, describing the type of New Securities, the price, and the
general terms upon which the Company proposes to issue the same. Each Eligible
Purchaser shall have twenty (20) Business Days after receipt of such notice to
agree to purchase all or any portion of its pro rata share of such New
Securities at the price and upon the terms specified in the notice by giving
written notice to the Company and stating therein the quantity of New Securities
to be purchased. In the event that any New Securities subject to the Preemptive
Right are not purchased by the Eligible Purchaser within the twenty (20)
Business Day period specified above, the Company shall have ninety (90) days
thereafter to sell (or enter into an agreement pursuant to which the sale of New
Securities that had been subject to the Preemptive Right shall be closed, if at
all, within sixty (60) days from the date of said agreement) the New Securities
with respect to which the rights of the Purchaser were not exercised at a price
and upon terms, including manner of payment, no more favorable to the purchasers
thereof than specified in the Notice. In the event the Company has not sold all
offered New Securities within such ninety (90) day period (or sold and issued
New Securities in accordance with the foregoing within sixty (60) days from the
date of such agreement), the Company shall not thereafter issue or sell any New
Securities, without first complying again with the procedures set forth in this
Section 3.9.

                                       18

<PAGE>

                                   ARTICLE IV

                                   Conditions

        Section 4.1 Conditions Precedent to the Obligation of the Company to
Close and to Sell the Shares and Warrants. The obligation hereunder of the
Company to close and issue and sell the Shares and the Warrants to the
Purchasers on the Closing Date is subject to the satisfaction or waiver, at or
before the Closing, of the conditions set forth below. These conditions are for
the Company's sole benefit and may be waived by the Company at any time in its
sole discretion.

        (a) Accuracy of the Purchasers' Representations and Warranties. The
representations and warranties of each Purchaser Transaction Documents shall be
true and correct in all material respects as of the date when made and as of the
Closing Date as though made at that time, except for representations and
warranties that are expressly made as of a particular date, which shall be true
and correct in all material respects as of such date.

        (b) Performance by the Purchasers. Each Purchaser shall have performed,
satisfied and complied in all material respects with all covenants, agreements
and conditions required by this Agreement to be performed, satisfied or complied
with by the Purchasers at or prior to the Closing Date.

        (c) No Injunction. No statute, rule, regulation, executive order,
decree, ruling or injunction shall have been enacted, entered, promulgated or
endorsed by any court or governmental authority of competent jurisdiction which
prohibits the consummation of any of the transactions contemplated by this
Agreement.

        (d) Delivery of Purchase Price. The Purchase Price for the Shares and
Warrants shall have been delivered to the Company at the Closing.

        (e) Delivery of Purchaser Transaction Documents. The Purchaser
Transaction Documents shall have been duly executed and delivered by the
Purchasers to the Company.

        Section 4.2 Conditions Precedent to the Obligation of the Purchasers to
Close and to Purchase the Shares and Warrants. The obligation hereunder of the
Purchasers to purchase the Shares and Warrants and consummate the transactions
contemplated by this Agreement is subject to the satisfaction or waiver, at or
before the Closing, of each of the conditions set forth below. These conditions
are for the Purchasers' sole benefit and may be waived by the Purchasers at any
time in their sole discretion.

        (a) Accuracy of the Company's Representations and Warranties. Each of
the representations and warranties of the Company in this Agreement and in each
of the Transaction Documents shall be true and correct in all material respects
as of the Closing Date, except for representations and warranties that are
expressly made as of a particular date, which shall be true and correct in all
material respects as of such date.

                                       19

<PAGE>

        (b) Performance by the Company. The Company shall have performed,
satisfied and complied in all respects with all covenants, agreements and
conditions required by this Agreement to be performed, satisfied or complied
with by the Company at or prior to the Closing Date.

        (c) No Suspension, Etc. Trading in the Company's Common Stock shall not
have been suspended by the Commission (except for any suspension of trading of
limited duration agreed to by the Company, which suspension shall be terminated
prior to the Closing), and, at any time prior to the Closing Date, trading in
securities generally as reported by Bloomberg Financial Markets ("Bloomberg")
shall not have been suspended or limited, or minimum prices shall not have been
established on securities generally whose trades are reported by Bloomberg, nor
shall a banking moratorium have been declared either by the United States or
Delaware State authorities, nor shall there have occurred any national or
international calamity or crisis of such magnitude in its effect on any
financial market which, in each case, in the reasonable judgment of the
Purchasers, makes it impracticable or inadvisable to purchase the Shares.

        (d) No Injunction. No statute, rule, regulation, executive order,
decree, ruling or injunction shall have been enacted, entered, promulgated or
endorsed by any court or governmental authority of competent jurisdiction which
prohibits the consummation of any of the transactions contemplated by this
Agreement.

        (e) No Proceedings or Litigation. No action, suit or proceeding before
any arbitrator or any governmental authority shall have been commenced, and no
investigation by any governmental authority shall have been threatened, against
the Company or any Subsidiary, or any of the officers, directors or affiliates
of the Company or any Subsidiary, seeking to restrain, prevent or change the
transactions contemplated by this Agreement, or seeking damages in connection
with such transactions.

        (f) Opinion of Counsel, Etc. The Purchasers shall have received an
opinion of counsel to the Company, dated the Closing Date, substantially in the
form of Exhibit C hereto, and such other certificates and documents as the
Purchasers or their counsel shall reasonably require incident to the Closing.

        (g) Warrants and Shares. The Company shall have delivered to the
Purchasers the originally executed Warrants (in such denominations as each
Purchaser may request but in no event in denominations of less than 100) and
shall have delivered certificates representing the Shares (in such denominations
as each Purchaser may request) being acquired by the Purchasers at the Closing.

        (h) Resolutions. The Board of Directors of the Company shall have
adopted resolutions consistent with Section 2.1(b) hereof in a form reasonably
acceptable to the Purchasers (the "Resolutions").

                                       20

<PAGE>

        (i) Certificate of Designations. As of the Closing Date, the Company
shall have filed with the Delaware Secretary of State a Certificate of
Designations authorizing the Preferred Stock in substantially the Form of
Exhibit D attached hereto.

        (j) Reservation of Shares. As of the Closing Date, the Company shall
have reserved out of its authorized and unissued Preferred Stock, solely for the
purpose of effecting the issuance of the Shares, a number of shares of Preferred
Stock equal to the aggregate number of the Shares. As of the Closing Date, the
Company shall have reserved out of its authorized and unissued Common Stock,
solely for the purpose of effecting the conversion of the Shares and the
exercise of the Warrants, a number of shares of Common Stock equal to the number
of Conversion Shares and the number of Warrant Shares issuable upon conversion
of the Preferred Stock and the exercise of the Warrants, respectively, assuming
the Warrants are exercised and the Shares are converted on the Closing Date
(assuming the Warrants are fully exercisable and the Shares fully convertible on
such date regardless of any limitation on the timing or amount of such exercise
or conversion).

        (k) Secretary's Certificate. The Company shall have delivered to the
Purchasers a secretary's certificate, dated as of the Closing Date, as to (i)
the Resolutions, (ii) the Certificate, (iii) the Bylaws, each as in effect at
the Closing, and (iv) the authority and incumbency of the officers of the
Company executing the Transaction Documents and any other documents required to
be executed or delivered in connection therewith.

        (l) Officer's Certificate. On the Closing Date, the Company shall have
delivered to the Purchasers a certificate of an executive officer of the
Company, dated as of the Closing Date, confirming the accuracy of the Company's
representations, warranties and covenants contained herein and in each of the
other Transaction Documents as of the Closing Date and confirming the compliance
by the Company with the conditions precedent set forth in this Section 4.2 as of
the Closing Date.

        (m) Fees and Expenses. As of the Closing Date, all fees and expenses
required to be paid by the Company in connection with the transactions
contemplated by this Agreement shall have been, or authorized to be, paid by the
Company.

        (n) Registration Rights Agreement. As of the Closing Date, the parties
shall have entered into the Registration Rights Agreement in the Form of Exhibit
E attached hereto.

        (o) Material Adverse Effect. No Material Adverse Effect shall have
occurred and be continuing.

                                   ARTICLE V

                               Certificate Legend

        Section 5.1 Legend. Each certificate representing the Shares, the
Conversion Shares, the Warrants and the Warrant Shares shall be stamped or

                                       21

<PAGE>

otherwise imprinted with a legend substantially in the following form (in
addition to any legend required by applicable state securities or "blue sky"
laws):

          THE SECURITIES REPRESENTED BY THIS CERTIFICATE (THE "SECURITIES") HAVE
          NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
          "SECURITIES ACT") OR ANY STATE SECURITIES LAWS AND MAY NOT BE SOLD,
          TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE
          SECURITIES ACT AND UNDER APPLICABLE STATE SECURITIES LAWS OR CHINA
          CABLE AND COMMUNICATION, INC. SHALL HAVE RECEIVED AN OPINION OF
          COUNSEL THAT REGISTRATION OF SUCH SECURITIES UNDER THE SECURITIES ACT
          AND UNDER THE PROVISIONS OF APPLICABLE STATE SECURITIES LAWS IS NOT
          REQUIRED, WHICH OPINION AND COUNSEL SHALL BE REASONABLY SATISFACTORY
          TO CHINA CABLE AND COMMUNICATION, INC.

        Each certificate representing any Shares shall also be stamped or
otherwise imprinted with a legend substantially in the following form:

          CHINA CABLE AND COMMUNICATION, INC. WILL FURNISH TO EACH HOLDER OF ITS
          8% CONVERTIBLE PREFERRED STOCK WHO SO REQUESTS WITHOUT CHARGE A COPY
          OF THE CERTIFICATE OF DESIGNATION SETTING FORTH THE POWERS,
          DESIGNATIONS, PREFERENCES AND RELATIVE, PARTICIPATING, OPTIONAL OR
          OTHER SPECIAL RIGHTS OF SUCH STOCK AND ANY OTHER CLASS OR SERIES
          THEREOF AND THE QUALIFICATIONS, LIMITATIONS OR RESTRICTIONS OF SUCH
          PREFERENCES AND/OR RIGHTS.

        The Company agrees to reissue certificates representing any of the
Securities, without the legend set forth above, if at such time, prior to making
any transfer of any such Securities, such holder thereof shall give written
notice to the Company describing the manner and terms of such transfer and
removal as the Company may reasonably request. Such proposed transfer will not
be effected until: (a) the Company has notified such holder that either (i) in
the opinion of Company counsel, the registration of the Shares, the Conversion
Shares, Warrants or Warrant Shares under the Securities Act is not required in
connection with such proposed transfer, or (ii) a registration statement under
the Securities Act covering such proposed disposition has been filed by the
Company with the Commission and has become effective under the Securities Act;
and (b) the Company has notified such holder that either (i) in the opinion of
Company counsel, the registration or qualification under the securities or "blue
sky" laws of any state is not required in connection with such proposed
disposition, or (ii) compliance with applicable state securities or "blue sky"
laws has been effected. The Company will use its best efforts to respond to any
such notice from a holder within five (5) business days. In the case of any
proposed transfer under this Section 5.1, the Company will use reasonable
efforts to comply with any such applicable state securities or "blue sky" laws,

                                       22

<PAGE>

but shall in no event be required, in connection therewith, to qualify to do
business in any state where it is not then qualified or to take any action that
would subject it to tax or to the general service of process in any state where
it is not then subject. The restrictions on transfer contained in this Section
5.1 shall be in addition to, and not by way of limitation of, any other
restrictions on transfer contained in any other section of this Agreement.

                                   ARTICLE VI

                                   Termination

        Section 6.1 Termination by Mutual Consent. This Agreement may be
terminated at any time prior to the Closing Date by the mutual written consent
of the Company and the Purchasers.

        Section 6.2 Effect of Termination. In the event of termination by the
Company or the Purchasers, written notice thereof shall forthwith be given to
the other party and the transactions contemplated by this Agreement shall be
terminated without further action by any party. If this Agreement is terminated
as provided in Section 6.1 herein, this Agreement shall become void and of no
further force and effect, except for Sections 8.1 and 8.2, and Article VII
herein. Nothing in this Section 6.2 shall be deemed to release the Company or
any Purchaser from any liability for any breach under this Agreement, or to
impair the rights of the Company or such Purchaser to compel specific
performance by the other party of its obligations under this Agreement.

                                  ARTICLE VII

                                 Indemnification

        Section 7.1 General Indemnity. The Company agrees to indemnify and hold
harmless each Purchaser (and its respective directors, officers, employees,
affiliates, agents, successors and assigns) from and against any and all losses,
liabilities, deficiencies, costs, damages and expenses (including, without
limitation, reasonable attorneys' fees, charges and disbursements) incurred by
each Purchaser or any such person as a result of any inaccuracy in or breach of
the representations, warranties or covenants made by the Company herein. The
Purchasers severally but not jointly agree to indemnify and hold harmless the
Company and its directors, officers, employees, affiliates, agents, successors
and assigns from and against any and all losses, liabilities, deficiencies,
costs, damages and expenses (including, without limitation, reasonable
attorneys' fees, charges and disbursements) incurred by the Company as result of
any inaccuracy in or breach of the representations, warranties or covenants made
by the Purchasers herein.

        Section 7.2 Indemnification Procedure. Any party entitled to
indemnification under this Article VII (an "indemnified party") will give
written notice to the indemnifying party of any matters giving rise to a claim
for indemnification; provided, that the failure of any party entitled to
indemnification hereunder to give notice as provided herein shall not relieve
the indemnifying party of its obligations under this Article VII except to the
extent that the indemnifying party is actually prejudiced by such failure to
give notice. In case any action, proceeding or claim is brought against an

                                       23

<PAGE>

indemnified party in respect of which indemnification is sought hereunder, the
indemnifying party shall be entitled to participate in and, unless in the
reasonable judgment of the indemnified party a conflict of interest between it
and the indemnifying party may exist with respect to such action, proceeding or
claim, to assume the defense thereof with counsel reasonably satisfactory to the
indemnified party. In the event that the indemnifying party advises an
indemnified party that it will contest such a claim for indemnification
hereunder, or fails, within thirty (30) days of receipt of any indemnification
notice to notify such person in writing of the indemnifying party's election to
defend, settle or compromise, at its sole cost and expense, any action,
proceeding or claim (or discontinues its defense at any time after it commences
such defense), then the indemnified party may, at its option, defend, settle or
otherwise compromise or pay such action or claim. In any event, unless and until
the indemnifying party elects in writing to assume and does so assume the
defense of any such claim, proceeding or action, the indemnified party's costs
and expenses arising out of the defense, settlement or compromise of any such
action, claim or proceeding shall be losses subject to indemnification
hereunder. The indemnified party shall cooperate fully with the indemnifying
party in connection with any negotiation or defense of any such action or claim
by the indemnifying party and shall furnish to the indemnifying party all
information reasonably available to the indemnified party which relates to such
action or claim. The indemnifying party shall keep the indemnified party fully
apprised at all times as to the status of the defense or any settlement
negotiations with respect thereto. If the indemnifying party elects to defend
any such action or claim, then the indemnified party shall be entitled to
participate in such defense with counsel of its choice at its sole cost and
expense. The indemnifying party shall not be liable for any settlement of any
action, claim or proceeding effected without its prior written consent.
Notwithstanding anything in this Article VII to the contrary, the indemnifying
party shall not, without the indemnified party's prior written consent, which
consent may not be unreasonably withheld, settle or compromise any claim or
consent to entry of any judgment in respect thereof which imposes any future
obligation on the indemnified party or which does not include, as an
unconditional term thereof, the giving by the claimant or the plaintiff to the
indemnified party of a release from all liability in respect of such claim. If
the indemnifying party fails or refuses to promptly assume the defense of any
such claim, proceeding or action, then the indemnification required by this
Article VII shall be made by periodic payments of the amount thereof during the
course of investigation or defense, as and when bills are received or expense,
loss, damage or liability is incurred, so long as the indemnified party
irrevocably agrees to refund such moneys if it is ultimately determined by a
court of competent jurisdiction that such party was not entitled to
indemnification. The indemnity agreements contained herein shall be in addition
to (a) any cause of action or similar rights of the indemnified party against
the indemnifying party or others, and (b) any liabilities the indemnifying party
may be subject to pursuant to applicable law.

                                  ARTICLE VIII

                                  Miscellaneous

        Section 8.1 Fees and Expenses. Each party shall pay the fees and
expenses of its advisors, counsel, accountants and other experts, if any, and
all other expenses, incurred by such party incident to the negotiation,
preparation, execution, delivery and performance of this Agreement; provided,
however, that the Company shall pay $20,000 to the Purchaser's counsel to

                                       24

<PAGE>

reimburse the Purchaser for the fees and expenses (including attorneys' fees and
expenses) incurred by it in connection with its due diligence review of the
Company and the preparation, negotiation, execution, delivery and performance of
this Agreement and the other Transaction Documents and the transactions
contemplated thereunder (including the Purchaser's counsel's review of the
Registration Statement (as contemplated by the Registration Rights Agreement) as
special counsel), $10,000 of which has already been paid to the Purchaser's
legal counsel and is non-refundable, and the other $10,000 of which shall be due
and payable in cash at Closing (and only if the Closing occurs). If the Closing
occurs, the Company hereby authorizes and directs the Purchaser to deduct
$10,000 from the Purchase Price to be paid by the Purchaser at Closing and remit
such amount directly to the Purchaser's counsel in payment and satisfaction of
such other $10,000 due and payable by the Company at Closing. In addition, the
Company shall pay all reasonable fees and expenses incurred by each Purchaser in
connection with any amendments, modifications or waivers of this Agreement or
any of the other Transaction Documents or incurred in connection with the
enforcement of this Agreement and any of the other Transaction Documents,
including, without limitation, all reasonable attorneys' fees, disbursements and
expenses.

        Section 8.2 Specific Enforcement; Consent to Jurisdiction.

        (a) The Company and the Purchasers acknowledge and agree that
irreparable damage would occur in the event that any of the provisions of this
Agreement or the other Transaction Documents were not performed in accordance
with their specific terms or were otherwise breached. It is accordingly agreed
that the parties shall be entitled to an injunction or injunctions to prevent or
cure breaches of the provisions of this Agreement or the other Transaction
Documents and to enforce specifically the terms and provisions hereof or
thereof, this being in addition to any other remedy to which any of them may be
entitled by law or equity.

        (b) The Company and each Purchaser (i) hereby irrevocably submit to the
exclusive jurisdiction of the United States District Court sitting in the
Northern District of Texas and the courts of the State of Texas located in
Dallas County for the purposes of any suit, action or proceeding arising out of
or relating to this Agreement or any of the other Transaction Documents or the
transactions contemplated hereby or thereby, and (ii) hereby waive, and agree
not to assert in any such suit, action or proceeding, any claim that it is not
personally subject to the jurisdiction of each such court, that the suit, action
or proceeding is brought in an inconvenient forum or that the venue of the suit,
action or proceeding is improper. The Company and each Purchaser consent to
process being served in any such suit, action or proceeding by mailing a copy
thereof to such party at the address in effect for notices to it under this
Agreement and agrees that such service shall constitute good and sufficient
service of process and notice thereof. Nothing in this Section 8.2 shall affect
or limit any right to serve process in any other manner permitted by law. The
Company and the Purchasers hereby agree that the prevailing party in any suit,
action or proceeding arising out of or relating to the Shares, this Agreement,
the Registration Rights Agreement or the Warrants, shall be entitled to
reimbursement for reasonable legal fees from the non-prevailing party.

        Section 8.3 Entire Agreement; Amendment. This Agreement, the Transaction
Documents and the Purchaser Transaction Documents contain the entire
understanding and agreement of the parties with respect to the matters covered
hereby and, except as specifically set forth herein or in any of the Transaction

                                       25

<PAGE>

Documents or Purchaser Transaction Documents, neither the Company nor any
Purchaser make any representation, warranty, covenant or undertaking with
respect to such matters. This Agreement, the Transaction Documents and the
Purchaser Transaction Documents supersede all prior understandings and
agreements with respect to said subject matter, all of which are merged herein.
No provision of this Agreement may be waived or amended other than by a written
instrument signed by the Company and the Purchasers and their permitted assigns
owning of record at least a majority in interest of the then-outstanding Shares,
and no provision hereof may be waived other than by a written instrument signed
by the party against whom enforcement of any such waiver is sought. No amendment
to this Agreement shall be effective to the extent that it applies to less than
all of the holders of the Shares then outstanding or violates any provision of
the Delaware General Corporation Law. No consideration shall be offered or paid
to any person to amend or consent to a waiver or modification of any provision
of any of the Transaction Documents unless the same consideration is also
offered to all of the parties to the Transaction Documents or holders of Shares,
as the case may be.

        Section 8.4 Notices. Any notice, demand, request, waiver or other
communication required or permitted to be given hereunder shall be in writing
and shall be deemed given and received (a) upon hand delivery or delivery by
telecopy or facsimile at the address or number designated below (if delivered on
a business day during normal business hours where such notice is to be
received), or the first business day following such delivery (if delivered other
than on a business day during normal business hours where such notice is to be
received), or (b) on the second business day following the date of mailing by
express courier service, fully prepaid, addressed to such address, or upon
actual receipt of such mailing, whichever shall first occur. The addresses for
such communications shall be:

If to the Company:                  China Cable and Communication, Inc.
                                    Suite 805, One Pacific Place
                                    88 Queensway, Hong Kong
                                    Attention:  Raymond Ying-Wai Kwan, CEO
                                    Telecopier:  (852) 2861-2128
                                    Telephone:  (852) 2891-3130

with copies (which copies
shall not constitute notice
to the Company) to:                 Patton Boggs LLP
                                    1660 Lincoln Street
                                    Suite 1900
                                    Denver, Colorado  80264
                                    Attention: Alan L. Talesnick, Esq.
                                    Telecopier:  (303) 894-9239
                                    Telephone:  (303) 830-1776

If to any Purchaser:                At the address of such Purchaser set forth
                                    on Exhibit A to this Agreement.

                                       26

<PAGE>

     Any party hereto may from time to time change its address for notices by
giving at least ten (10) days written notice of such changed address to the
other party or parties hereto in accordance with the provisions of this Section
8.4.

        Section 8.5 Waivers. No waiver by any party of any default with respect
to any provision, condition or requirement of this Agreement shall be deemed to
be a continuing waiver in the future or a waiver of any other provision,
condition or requirement hereof, nor shall any delay or omission of any party to
exercise any right hereunder in any manner impair the exercise of any such right
accruing to it thereafter.

        Section 8.6 Headings. The article, section and subsection headings in
this Agreement are for convenience only and shall not constitute a part of this
Agreement for any other purpose and shall not be deemed to limit or affect any
of the provisions hereof.

        Section 8.7 Successors and Assigns. This Agreement shall be binding upon
and inure to the benefit of the parties and their successors and permitted
assigns. After the Closing, the assignment by a party to this Agreement of any
rights hereunder shall not affect the obligations of such party under this
Agreement.

        Section 8.8 No Third Party Beneficiaries. This Agreement is intended for
the benefit of the parties hereto and their respective permitted successors and
assigns and is not for the benefit of, nor may any provision hereof be enforced
by, any other person (other than indemnified parties, as contemplated by Article
VII).

        Section 8.9 Governing Law. This Agreement shall be governed by and
construed in accordance with the internal laws of the State of Delaware, without
giving effect to the choice of law provisions. This Agreement shall not be
interpreted or construed with any presumption against the party causing this
Agreement to be drafted.

        Section 8.10 Survival. The representations and warranties of the Company
contained in Sections 2.1(o) and 2.1(s) shall survive until the expiration of
the applicable statutes of limitations, and those contained in Article II, with
the exception of Sections 2.1(o) and 2.1(s), shall survive the execution and
delivery hereof and the Closing until the date two (2) years from the Closing
Date, and the agreements and covenants set forth in Articles I, III, V, VII and
VIII of this Agreement shall survive the execution and delivery hereof and the
Closing hereunder.

        Section 8.11 Counterparts. This Agreement may be executed in any number
of counterparts, all of which taken together shall constitute one and the same
instrument and shall become effective when counterparts have been signed by each
party and delivered to the other parties hereto, it being understood that all
parties need not sign the same counterpart.

        Section 8.12 Publicity. The Company agrees that it will not disclose,
and will not include in any public announcement, the names of the Purchasers
without the consent of the Purchasers in accordance with Section 8.3, which
consent shall not be unreasonably withheld or delayed, or unless and until such
disclosure is required by law, rule or applicable regulation, and then only to
the extent of such requirement.

                                       27

<PAGE>

        Section 8.13 Severability. The provisions of this Agreement are
severable and, in the event that any court of competent jurisdiction shall
determine that any one or more of the provisions or part of the provisions
contained in this Agreement shall, for any reason, be held to be invalid,
illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect any other provision or part of a provision of
this Agreement and this Agreement shall be reformed and construed as if such
invalid or illegal or unenforceable provision, or part of such provision, had
never been contained herein, so that such provisions would be valid, legal and
enforceable to the maximum extent possible.

        Section 8.14 Further Assurances. From and after the date of this
Agreement, upon the request of the Purchasers or the Company, the Company and
each Purchaser shall execute and deliver such instruments, documents and 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, the Warrants
and the Registration Rights Agreement.

                  [Remainder of page intentionally left blank.]

                                       28
<PAGE>

        IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed by their respective authorized officers as of the date first above
written.

                                CHINA CABLE AND COMMUNICATION, INC.

                                By:  /s/    Raymond Kwan
                                    ----------------------------------------
                                   Name:    Raymond Ying-Wai Kwan
                                   Title:   Chief Executive Officer

                                GRYPHON MASTER FUND, L.P.

                                By:  Gryphon Partners, L.P., its General Partner

                                    By: Gryphon Management Partners, L.P.,
                                             its General Partner

                                       By:  Gryphon Advisors, LLC,
                                             its General Partner

                                         By: /s/  E. B. Lyon, IV.
                                              -----------------------------
                                              E.B. Lyon, IV, Authorized Agent

                                       29

<PAGE>
<TABLE>
<CAPTION>

                                    EXHIBIT A
                                    ---------
                               LIST OF PURCHASERS

Names and Addresses of               Number of Shares         Number of Warrants                 Dollar Amount
Purchasers                             Purchased                  Purchased                      of Investment
----------                             ---------                  ---------                      -------------

<S>                                 <C>                                <C>                        <C>
Gryphon Master Fund, L.P.           2,758,621                          827,586                    $4,000,000
500 Crescent Court
Suite 270
Dallas, Texas  75201
Attn:  Ryan R. Wolters
Telecopier: (214) 871-6909
Telephone: (214) 871-6783

with copies to:

Warren W. Garden, P.C.
100 Crescent Court
Suite 590
Dallas, Texas  75201
Attn:  Warren W. Garden, Esq.
Telecopier: (214) 871-6711
Telephone: (214) 871-6710

                                      A-1
</TABLE>

<PAGE>

                                    EXHIBIT B
                                    ---------
                                 FORM OF WARRANT

                                      B-1
<PAGE>

                                    EXHIBIT C
                                    ---------
                                 FORM OF OPINION

        1. The Company is a corporation duly incorporated, validly existing and
in good standing under the laws of the State of Delaware and has the requisite
corporate power to own, lease and operate its properties and assets, and to
carry on its business as presently conducted. The Company is duly qualified as a
foreign corporation to do business and is in good standing in the States of
________ and ________, which are the only states represented to us as those in
which the Company conducts any business.

        2. The Company has the requisite corporate power and authority to enter
into and perform its obligations under the Transaction Documents and to issue
the Shares, the Conversion Shares, the Warrants and the Warrant Shares. The
execution, delivery and performance of each of the Transaction Documents by the
Company and the consummation by it of the transactions contemplated thereby have
been duly and validly authorized by all necessary corporate action and no
further consent or authorization of the Company or its Board of Directors is
required. Each of the Transaction Documents have been duly executed and
delivered, and the Shares and the Warrants have been duly executed, issued and
delivered by the Company and each of the Transaction Documents constitutes a
legal, valid and binding obligation of the Company enforceable against the
Company in accordance with its respective terms. The Shares, the Conversion
Shares and the Warrant Shares are not subject to any preemptive rights under the
Certificate or the Bylaws.

        3. The Shares have been duly authorized and, when delivered against
payment in full as provided in the Purchase Agreement, will be validly issued,
fully paid and nonassessable. The Conversion Shares, have been duly authorized
and reserved for issuance, and, when delivered upon conversion of the Shares,
will be validly issued, fully paid and nonassessable. The Warrant Shares, have
been duly authorized and reserved for issuance, and, when delivered upon
exercise or against payment in full as provided in the Warrants, will be validly
issued, fully paid and nonassessable.

        4. The execution, delivery and performance of and compliance with the
terms of the Transaction Documents and the issuance of the Shares, the
Conversion Shares, the Warrants and the Warrant Shares do not (a) violate any
provision of the Certificate or Bylaws, (b) conflict with, or constitute a
default (or an event which with notice or lapse of time or both would become a
default) under, or give to others any rights of termination, amendment,
acceleration or cancellation of, any material agreement, mortgage, deed of
trust, indenture, note, bond, license, lease agreement, instrument or obligation
to which the Company is a party and which is known to us, (c) create or impose a
lien, charge or encumbrance on any property of the Company under any agreement
or any commitment known to us to which the Company is a party or by which the
Company is bound or by which any of its respective properties or assets are
bound, or (d) result in a violation of any Federal statute, rule, regulation,
order, judgment, injunction or decree or the Delaware General Corporation Law or
the Texas Securities Act (including Federal and state securities laws and
regulations) to the extent applicable to the Company or by which any property or
asset of the Company is bound or affected, except, in all cases other than
violations pursuant to clauses (a) and (d) above, for such conflicts, default,

                                      C-1

<PAGE>

terminations, amendments, acceleration, cancellations and violations as would
not, individually or in the aggregate, have a Material Adverse Effect.

        5. No consent, approval or authorization of or designation, declaration
or filing with any governmental authority on the part of the Company is required
under Federal law, rule or regulation or the Delaware General Corporation Law in
connection with the valid execution, delivery and performance of the Transaction
Documents, or the offer, sale or issuance of the Shares, the Conversion Shares,
the Warrants or the Warrant Shares other than filings as may be required by
applicable Federal and state securities laws and regulations.

        6. To our knowledge, there is no action, suit, claim, investigation or
proceeding pending or threatened against the Company which questions the
validity of the Agreement or the transactions contemplated thereby or any action
taken or to be taken pursuant thereto. To our knowledge, there is no action,
suit, claim, investigation or proceeding pending or threatened, against or
involving the Company or any of its properties or assets and which, if adversely
determined, is reasonably likely to result in a Material Adverse Effect. To our
knowledge, there are no outstanding orders, judgments, injunctions, awards or
decrees of any court, arbitrator or governmental or regulatory body against the
Company or any officers or directors of the Company in their capacities as such.

        7. Based on the agreements, representations and warranties of the
parties contained in the Agreement, the offer, issuance and sale of the Shares
and the Warrants and the offer, issuance and sale of the Conversion Shares and
the Warrant Shares pursuant to the Agreement and the Warrants, as applicable,
are exempt from the registration requirements of the Securities Act of 1933, as
amended.

        8. The Company is not, and as a result of and immediately upon Closing
will not be, an "investment company" or a company "controlled" by an "investment
company," within the meaning of the Investment Company Act of 1940, as amended.

                                      C-2
<PAGE>

                                    EXHIBIT D
                                    ---------
                       FORM OF CERTIFICATE OF DESIGNATIONS

                                      D-1
<PAGE>

                                    EXHIBIT E
                                    ---------
                      FORM OF REGISTRATION RIGHTS AGREEMENT

                                       E-1

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