Document:

Exhibit 10.5

                              EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT (this "Agreement") is made and entered into this
11th day of January, 2007, between Navstar Media Holdings, Ltd., a Nevada
corporation . (the "Company"), and YANG Wenquan, residing at Beijing, China
100026 (the "Executive").

     WHEREAS, the Company's business consists of the development and production
of traditional and digital media products and activities incidental thereto (the
"Business");

     WHEREAS, the Company has expended considerable time, effort and resources
in the development of certain Confidential Information, as defined hereinbelow,
which must be maintained as confidential in order to ensure the success of the
Company's Business; and

     WHEREAS, the Executive will have immediate access to such Confidential
Information immediately upon the Executive's execution of this Agreement;

     NOW, THEREFORE, in consideration of the covenants and promises contained
herein, the compensation and benefits received by the Executive from the
Company, and the access given the Executive to the aforesaid confidential and
proprietary information, and for other good and valuable consideration, the
sufficiency of and receipt of which are hereby acknowledged, the Company and the
Executive agree as follows:

     1.   Employment Period. The Company offers to employ the Executive, and the
Executive agrees to be employed by Company, in accordance with the terms and
subject to the conditions of this Agreement commencing on the effective date of
this Agreement (the "Commencement Date") and terminating the third anniversary
of the Commencement Date (the "Scheduled Termination Date"), unless terminated
prior thereto in accordance with the provisions of paragraph 7 hereinbelow. This
Agreement is renewable for another term of two years at the expiry with the
mutual agreement between the Company and the Executive. The Executive affirms
that no obligation exists between the Executive and any other entity which would
prevent or impede the Executive's immediate and full performance of every
obligation of this Agreement.

     2.   Position and Duties. During the term of the Executive's employment
hereunder, the Executive will serve in the position, and assume duties and
responsibilities consistent with the position of Chief executive officer unless
and until otherwise instructed by the Company. The Executive agrees to devote
all of his skill, energy and best business efforts during the term of his
employment with the Company. The Executive covenants and agrees that for so long
as he is employed by the Company, the Executive shall inform the Company of each
and every business opportunity related to the business of the Company of which
the Executive becomes aware, and that the Executive will not, directly or
indirectly, exploit any such opportunity for the Executive's own account, nor
will the Executive acquire any interest of any type in any other business or
engage in any activities that conflict with the Company's best interests or
which is in competition with the Company.

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     3.   Hours of Work. The Executive's normal days and hours of work shall be
mutually agreed upon with the Company. The nature of the Executive's employment
with the Company requires flexibility in the days and hours that the Executive
must work, and may necessitate that the Executive work on other or additional
days and hours. The Company reserves the right to require the Executive, and the
Executive agrees, to work during other or further days or hours than the
mutually agreed business hours.

     4.   Location. The locus of the Executive's employment with Company shall
be the Company's office located in the offices of the Company in Beijing, China
and its operations in New York, the United States of America. The Company may,
in its sole discretion, require the Executive to travel to and reside in, on a
temporary, indefinite or permanent basis, in any other location throughout the
world in which the Company or any of its affiliates has offices.

     5.   Base Salary; Reimbursement of Expenses. (a) During the Executive's
continued full and satisfactory performance of his duties and responsibilities
hereunder, the Company shall pay or cause to pay, and the Executive agrees to
accept, during the first year (the "First Year") of the Executive's employment,
in consideration for the Executive's services, pro rata payments, as earned and
consistent with Company's then-existing payroll practices, of the monthly salary
of US$4,000, less all applicable taxes and other appropriate deductions to be
paid in the Company's shares of common stock valued at the the closing price of
the month but given out on a quarterly basis to be paid. Following the First
Year, the Executive's base salary shall be reviewed annually by the Board of
Directors of the Company. The Company reserves the right, in its sole
discretion, and the Executive hereby acknowledges the Company's right, to make
no such payments or make reduced payments in connection with any periods of
unauthorized or unjustified absence from work or in the event that the Executive
is unavailable or unable to perform the Executive's duties for the Company
without adequate justification, as determined by the Company in its sole
discretion.

     (b)   The Company shall promptly pay or reimburse the Executive for all
reasonable expenses actually and properly (in accordance with the Company's
policy) incurred or paid by him, in an amount not to exceed US$4,000, in
connection with the performance of his services under this Agreement (including,
without limitation, travel expenses) upon presentation of expense statements or
vouchers or such other supporting documentation in such form and containing such
information as the Company may from time to time require.

     6.   Restricted Stock. During the Executive's continued full and
satisfactory performance of his duties and responsibilities hereunder, and
subject to the provisions in paragraph 7 hereinbelow, and for each 12 month
period, the Company shall award to him, in four quarterly installments on each
three month anniversary after the Commencement Date, restricted shares of common
stock of the Company. Each quarterly grant shall consist of the quantity of
shares of common stock of the Company whose aggregate market price at close of
trading on the date of grant equals $0. The Executive's right to receive any
quarterly grant of stock options is subject to and conditional upon his status
as a full-time employee of the Company at the time of such grant, and the
Executive shall not be entitled to any portion of any quarterly grant that has
not already been awarded to him prior to his last date of full-time employment
with the Company.

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     7.   Termination.

     a.   Death Or Resignation. If the Executive dies or resigns during the term
of this Agreement, this Agreement shall automatically terminate on the date of
the Executive's death or resignation and, following the date of the Executive's
death or resignation, the Company shall have no further obligations or liability
to the Executive or his heirs, administrators or executors with respect to
compensation and benefits thereafter, except for the obligation to pay the
Executive any earned but unpaid base salary through the Executive's date of
death or resignation and to pay the Executive for any unused accrued and
unforfeited vacation. The Company shall deduct, from all payments made
hereunder, all applicable taxes, including income tax, FICA and FUTA, and other
appropriate deductions.

     b.   Disability. At any time during the term of this Agreement, the Company
may terminate this Agreement and the Executive's employment with the Company
because of the Executive's "Disability," by written notice to the Executive. For
purposes of this Agreement, "Disability" shall mean, if at the end of any
calendar month during the term of this Agreement, the Executive, as a result of
mental or physical illness or injury, is or has been unable to perform his
duties under this Agreement, without or without reasonable accommodation, for
(i) the four (4) preceding consecutive calendar months, or (ii) any 180 days in
the previous twelve (12) months. If this Agreement is terminated because of the
Executive's "Disability," the Company shall have no further obligations or
liability to the Executive or his heirs, administrators or Executors with
respect to compensation and benefits thereafter, except for the obligation to
pay the Executive any earned but unpaid base salary through the Executive's last
date of employment with the Company and to pay the Executive for any unused
accrued and unforfeited vacation. The Company shall deduct, from all payments
made hereunder, all applicable taxes, including income tax, FICA and FUTA, and
other appropriate deductions.

     c.   "Cause." At any time during the term of this Agreement, the Company
may terminate this Agreement and the Executive's employment with the Company, at
any time, for "Company Cause." For purposes of this Agreement, "Company Cause"
shall mean: (i) the good faith determination by the Company's Board of Directors
that there has been continued neglect by the Executive of his duties hereunder,
or (ii) willful misconduct on the Executive's part in connection with the
performance of his duties hereunder, provided however, that the Executive shall
have been given one (1) written notice of such determination by the Company's
Board of Directors of continued neglect or willful misconduct and thereafter the
Executive shall not have cured such neglect or willful misconduct to the
satisfaction of the Company's Board of Directors within fifteen (15) days of the
Executive's receipt of such written notice, (iii) the Executive is convicted of
or pleads guilty or no contest to a felony or other conduct involving moral
turpitude. If this Agreement is terminated for "Company Cause," following the
Executive's last date of employment with the Company, the Company shall have no
further obligations or liability to the Executive or his heirs, administrators
or Executors with respect to compensation and benefits thereafter, except for
the obligation to pay the Executive any earned but unpaid base salary through
the Executive's last date of employment with the Company and to pay the
Executive for any unused accrued and unforfeited vacation. The Company shall
deduct, from all payments made hereunder, all applicable taxes, including income
tax, FICA and FUTA, and other appropriate deductions.

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         d. Termination By The Board of Directors. At any time during the term
of this Agreement, the Board of Directors of the Company, in its sole discretion
and by majority vote, may terminate this Agreement and the Executive's
employment with the Company without "Company Cause" by delivering to the
Executive written notice. In the event that this Agreement and the Executive's
employment with the Company is terminated pursuant to this subparagraph 7(d),
following the Executive's last date of employment with the Company, the Company
shall have no further obligations or liability to the Executive or his heirs,
administrators or executors with respect to compensation and benefits, except
for the obligation to pay the Executive any earned but unpaid base salary
through the Executive's last date of employment, the obligation to pay the
Executive for any unused accrued and unforfeited vacation, and the obligation to
continue to pay the Executive his base salary in accordance with paragraph 5(a)
hereinabove through the Scheduled Termination Date. The Company shall deduct,
from all payments made hereunder, all applicable taxes, including income tax,
FICA and FUTA, and other appropriate deductions.

     8.   Confidential Information.

     a.   The Executive expressly acknowledges that, in the performance of his
duties and responsibilities with the Company, he will be exposed to the trade
secrets, business and/or financial secrets and confidential and proprietary
information of the Company, its affiliates and/or its clients or customers
("Confidential Information"). The term "Confidential Information" means
information or material that has actual or potential commercial value to the
Company, its affiliates and/or its clients or customers and is not generally
known to and is not readily ascertainable by proper means to persons outside the
Company, its affiliates and/or its clients or customers, and includes, without
limitation, and includes, without limitation, the following, whether or not
expressed in a document or medium, regardless of the form in which it is
communicated, whether or not such information is on the Company's forms, memos,
computer disc or tape, or otherwise, whether or not such information is in
written or verbal form, and whether or not marked "trade secret" or
"confidential" or any similar legend: (i) sales information, (ii) operations
information, (iii) financial information, (iv) administrative information, (v)
research information, (vi) customer information, (vii) supplier information, and
(viii) any other information concerning the Company, its business, its
properties or its affairs that the Company deems to be confidential or that is
confidential according to industry practices.

     b.   Except as authorized in writing by the Company's Chief executive
officer, during the term of this Agreement and thereafter until such time as any
such Confidential Information become generally known to and readily
ascertainable by proper means to persons outside the Company, its affiliates
and/or its clients or customers, the Executive agrees to keep strictly
confidential and not use or disclose, cause to be used or disclosed, or permit
to be used or disclosed, to any person or entity and/or for his personal benefit
or the benefit to any other person or entity, any Confidential Information.

     c.   The Executive agrees that upon termination of his employment with the
Company for any reason, he will promptly return to the Company all Confidential
Information within his possession or within his power to control, including,
without limitation all copies of such Confidential Information, all abstracts of
such Confidential Information and any other information containing such
Confidential Information in whole or in part.

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     d.   The Executive affirms that he does not possess and will not rely upon
the protected trade secrets or confidential or proprietary information of the
Executive's prior employer(s) in providing services to the Company.

     9.   Ownership and Assignment of Inventions.

     a.   The Executive acknowledges that, in connection with his duties and
responsibilities relating to his employment with the Company, the Executive
and/or other employees of the Company working with the Executive, without the
Executive or under the Executive's supervision, may create, conceive of, make,
prepare, work on or contribute to the creation of, or may be asked by the
Company and/or its affiliates or customers to create, conceive of, make,
prepare, work on or contribute to the creation of, without limitation, lists,
business diaries, business address books, documentation, ideas, concepts,
inventions, designs, works of authorship, computer programs, audio/visual works,
developments, proposals, works for hire or other materials ("Inventions"). To
the extent that any such Inventions relate to any actual or reasonably
anticipated business of the Company or any of its affiliates or customers, or
falls within, is suggested by or results from any tasks assigned to the
Executive for or on behalf of the Company or any of its affiliates or customers,
the Executive expressly acknowledges that all of his activities and efforts
relating to any Inventions, whether or not performed during the Executive's or
the Company's regular business hours, are within the scope of the Executive's
employment with the Company and that the Company owns all right, title and
interest in and to all Inventions, including, to the extent that they exist, all
intellectual property rights thereto, including, without limitation, copyrights,
patents and trademarks in and to all Inventions. The Executive also acknowledges
and agrees that the Company owns and is entitled to sole ownership of all rights
and proceeds to all Inventions.

     b.   The Executive expressly acknowledges and agrees to assign to the
Company, and hereby assigns to the Company, all of the Executive's right, title
and interest in and to all Inventions, including, to the extent they exist, all
intellectual property rights thereto, including, without limitation, copyrights,
patents and trademarks in and to all Inventions.

     c.   In connection with all Inventions, the Executive agrees to disclose
any Invention promptly to the Company and to no other person or entity. The
Executive further agrees to execute promptly, at the Company's request, specific
written assignments of the Executive's right, title and interest in any
Inventions, and do anything else reasonably necessary to enable the Company to
secure or obtain a copyright, patent, trademark or other form of protection in
or for any Invention in the United States or other countries. The Executive
further agrees that the Company is not required to designate the Executive as an
author of or contributor to any Invention or to secure the Executive's
permission to change or otherwise alter any Invention.

     d.   The Executive acknowledges that all rights, waivers, releases and/or
assignments granted herein and made by the Executive are freely assignable by
the Company and are made for the benefit of the Company and its affiliates,
subsidiaries, licensees, successors and assigns.

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     e.   The Executive agrees to waive, and hereby does waive, for the benefit
of all persons, any and all right, title and interest in the nature of "moral
rights" or "droit moral" granted to the Executive in any country in the world.

     10.   Non-Competition And Non-Solicitation. Because of the nature of the
Company's Business, and because, as a result of their employment with the
Company, the Executive and other present and former employees of the Company
have been and will be exposed to Confidential Information, the Executive
acknowledges that the Company would sustain grievous harm in the event that he
or the Company's other present and former employees were to disclose
Confidential Information, engage in business activities that compete with the
Business, appropriate or divert business or customers of the Company and/or
induce employees or consultants of the Company to leave the employment of the
Company, all of which would violate recognized employee obligations. The
Executive acknowledges that the Company has a legitimate business interest in
protecting itself from the aforementioned harm and in the protection and
maintenance of the Confidential Information and the Company's customer
relationships. Therefore, the Executive hereby agrees and covenants to be bound
by the non-competition and non-solicitation restrictions set forth herein below,
which restrictions the Executive agrees and acknowledges are reasonable and
necessary and do not impose undue hardship or burdens on the Executive.

     a.   The Executive agrees that, during his employment with the Company for
a period of three (3) years following the termination of his employment with the
Company, he shall not directly or indirectly own, manage, operate, control, be
employed by, consult for, be a shareholder of, be an officer of, participate in,
contract with or be connected in any capacity or any manner with any business
that directly or indirectly (whether through related companies or otherwise)
competes with the Company anywhere in the United States and the People's
Republic of China where the Company is engaged in the Business, provided
however, that the Executive shall not be prevented from owning an interest in a
publicly traded company so long as the fair market value of such interest at the
date of acquisition is less than One Hundred Thousand United States Dollars
(US$100,000.00) and none of the Executive or his affiliates will directly or
indirectly (whether through related companies or otherwise) compete with the
Company anywhere in the United States and the People's Republic of China where
the Company is engaged in the Business.

     b.   The Executive agrees that during the period of his employment with the
Company and for a period of three (3) years following the termination of his
employment with the Company, for any reason he will not directly or indirectly
supervise, manage, hire, cause to be hired or otherwise induce any employee of
the Company to leave the employment of the Company or any independent contractor
of the Company to terminate its relationship with the Company, for any reason.

     c.   The Executive agrees that during the period of his employment with the
Company and for a period of three (3) years following the termination of his
employment with the Company, he will not directly or indirectly appropriate,
divert or assist another to appropriate or divert any actual or potential

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business or customer away from the Company, or attempt to do any of the
foregoing or otherwise induce or attempt to induce any customer of the Company,
to terminate or adversely modify its relationship with the Company or any
potential customer to not enter into a relationship with the Company.

     d.   If any of the restrictive covenants set forth in paragraphs 10(a), (b)
and (c) of this Agreement is held to be invalid, illegal or unenforceable (in
whole or in part), such restrictive covenant shall be deemed modified to the
extent, but only to the extent, of such invalidity, illegality or
unenforceability, and a court of competent jurisdiction shall have the power to
modify, any such restrictive covenant to the extent necessary to render such
provision enforceable, and the remaining restrictive covenant shall not be
affected thereby.

     e.   In the event of a violation of any of the restrictive covenants set
forth in paragraphs 10(a), (b) and (c) of this Agreement, if the Executive is
prevented by a court or arbitrator from committing any further violation,
whether by a temporary restraining order, injunction or otherwise, the time
periods set forth in paragraphs 10(a), (b) and (c) of this Agreement shall be
computed by commencing the periods on the date of the applicable court or
arbitrators' order and continuing them from that date for the full period
provided.

     f.   The Executive shall have the right to request a waiver of all or part
of the restrictive covenants contained in paragraphs 10(a), (b) and (c) of this
Agreement by providing the Company with a written request for such a waiver that
contains all relevant details. The Company may, in its sole discretion, waive
all or part of the restrictive covenants contained in paragraphs 10(a), (b) and
(c) of this Agreement on such terms and conditions, and to such extent, as it,
in its sole discretion, deems appropriate. Such waiver must be in writing.

     g.   The parties acknowledge that this Agreement would not have been
entered into, that the benefits described in paragraphs 5 and 6 would not have
been promised to the Executive by the Company, in the absence of the Executive's
covenants and promises set forth in paragraphs 10(a), (b) and (c) of this
Agreement.

     11.   Notwithstanding the termination of this Agreement and of the
Executive's employment with the Company, paragraphs 8, 9 and 10 of this
Agreement shall continue in full force and effect in accordance with their
terms.

     12.   Dispute Resolution. The Executive and the Company agree that any
dispute or claim, whether based on contract, tort, discrimination, retaliation,
or otherwise, relating to, arising from, or connected in any manner with this
Agreement or with the Executive's employment with Company, if not amicably
settled by the parties, shall be resolved exclusively through final and binding
arbitration under the auspices of the American Arbitration Association ("AAA")
in accordance with the commercial arbitration rules and supplementary procedures
for international commercial arbitration of the AAA. The arbitration shall be
held in New York City. There shall be three arbitrators: one arbitrator shall be
chosen by each party to the dispute and those two arbitrators shall choose the
third arbitrator. Each party shall cooperate with the other in making full
disclosure of and providing complete access to all information and documents
requested by the other party in connection with the arbitration proceedings.

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Arbitration shall be the sole, binding, exclusive and final remedy for resolving
any dispute between the parties; provided, however, that either party may apply
to any court of competent jurisdiction in the State of New York for enforcement
of any award granted by the arbitrators. The arbitrators shall have jurisdiction
to determine any claim, including the arbitrability of any claim, submitted to
them. The arbitrators may grant any relief authorized by law for any properly
established claim. The interpretation and enforceability of this paragraph of
this Agreement shall be governed and construed in accordance with the United
States Federal Arbitration Act, 9. U.S.C. ss.1, et seq. More specifically, the
parties agree to submit to binding arbitration any claims for unpaid wages or
benefits, or for alleged discrimination, harassment, or retaliation, arising
under Title VII of the Civil Rights Act of 1964, the Equal Pay Act, the National
Labor Relations Act, the Age Discrimination in Employment Act, the Americans
With Disabilities Act, the Executive Retirement Income Security Act, the Civil
Rights of 1991, the Family and Medical Leave Act, the Fair Labor Standards Act,
Sections 1981 through 1988 of Title 42 of the United States Code, COBRA, and any
other federal, state, or local law, regulation, or ordinance, and any common law
claims, claims for breach of contract, or claims for declaratory relief. The
Executive acknowledges that the purpose and effect of this paragraph is solely
to elect private arbitration in lieu of any judicial proceeding he might
otherwise have available to him in the event of an employment-related dispute
between him and the Company. Therefore, the Executive hereby waives his right to
have any such employment-related dispute heard by a court or jury, as the case
may be, and agrees that his exclusive procedure to redress any
employment-related claims will be arbitration.

     13.  Miscellaneous.

     a.   Telephones, stationery, postage, e-mail, the internet and other
resources made available to the Executive by the Company, are solely for the
furtherance of the Company's business.

     b.   All issues concerning, relating to or arising out of this Agreement
and from the Executive's employment by the Company, including, without
limitation, the construction and interpretation of this Agreement, shall be
governed by and construed in accordance with the internal laws of the State of
New York, without giving effect to that State's principles of conflicts of law.

     c.   The Executive and the Company agree that any provision of this
Agreement deemed unenforceable or invalid may be reformed to permit enforcement
of the objectionable provision to the fullest permissible extent. Any provision
of this Agreement deemed unenforceable after modification shall be deemed
stricken from this Agreement, with the remainder of the Agreement being given
its full force and effect.

     d.   The Company shall be entitled to equitable relief, including
injunctive relief and specific performance as against the Executive, for the
Executive's threatened or actual breach of paragraphs 8, 9 or 10 of this
Agreement, as money damages for a breach thereof would be incapable of precise
estimation, uncertain, and an insufficient remedy for an actual or threatened
breach of paragraphs 8, 9 or 10 of this Agreement. The Executive and the Company
agree that any pursuit of equitable relief in respect of paragraphs 8, 9 or 10
of this Agreement shall have no effect whatsoever regarding the continued
viability and enforceability of paragraph 11 of this Agreement.

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     e.   Any waiver or inaction by the Company for any breach of this Agreement
shall not be deemed a waiver of any subsequent breach of this Agreement.

     f.   The Executive and the Company independently have made all inquiries
regarding the qualifications and business affairs of the other which either
party deems necessary. The Executive affirms that he fully understands this
Agreement's meaning and legally binding effect. Each party has participated
fully and equally in the negotiation and drafting of this Agreement. Each party
assumes the risk of any misrepresentation or mistaken understanding or belief
relied upon by her or it in entering into this Agreement.

     g.   The Company and the Executive agree that the Executive's obligations
to the Company during the Executive's employment with the Company, as well as
any other obligation of the Executive under this Agreement, may be assigned to
any successor in interest to the Company or any division or affiliate of the
Company in its sole discretion and without additional consideration or prior
notice to the Executive, but that nothing requires the Company to do so. The
Executive's obligations under this Agreement are personal in nature and may not
be assigned by the Executive to any other person or entity.

     h.   The Company and the Executive acknowledge and agree that future
alterations to the Executive's work hours, working title, management or
supervisory responsibilities, number of subordinate Executives, sales or
promotional budgets, reporting relationships within the Company or with
businesses affiliated with the Company, management responsibilities or duties,
or similar changes or alterations may occur periodically during the Executive's
employment with the Company. The Company and the Executive agree that the
Company, in its sole discretion, may implement such alterations or adjustments
for any or no reason and that any such action shall not constitute a breach of
this Agreement so long as the Company continues to perform its remaining
obligations as provided by this Agreement.

     i.   This instrument constitutes the entire Agreement between the parties
regarding its subject matter. When signed by all parties, this Agreement
supersedes and nullifies all prior or contemporaneous conversations,
negotiations, or agreements, oral and written, regarding the subject matter of
this Agreement. In any future construction of this Agreement, this Agreement
should be given its plain meaning. This Agreement may only be amended only by a
writing signed by the Company and the Executive.

     j.   This Agreement may be executed in counterparts, a counterpart
transmitted via facsimile, and all executed counterparts, when taken together,
shall constitute sufficient proof of the parties' entry into this Agreement. The
parties agree to execute any further or future documents which may be necessary
to allow the full performance of this Agreement. This Agreement contains
headings for ease of reference. The headings have no independent meaning.

THE EXECUTIVE STATES THAT HE HAS FREELY AND VOLUNTARILY ENTERED INTO THIS
AGREEMENT AND THAT HE HAS READ AND UNDERSTOOD EACH AND EVERY PROVISION THEREOF.
THIS AGREEMENT IS EFFECTIVE UPON THE EXECUTION OF THIS AGREEMENT BY BOTH
PARTIES.

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                        UNDERSTOOD, AGREED, AND ACCEPTED:

YANG Wenquan                                Navstar Media Holdings, Inc.

Name: /s/ YANG Wenquan                      By: /s/ Ranny Liang
      ------------------                        -------------------------
                                            Name: Ranny Liang
                                            Title: Chairman

Date:  January 11, 2007                     Date:    January 11, 2007

                                       10
<PAGE>Exhibit 10.6

                 FIRST SENIOR SECURED CONVERTIBLE LOAN AGREEMENT

     This first Senior Secured Loan Agreement (this "Agreement") is dated as of
January 30, 2007 among Navstar Media Holdings, Inc., a Delaware corporation (the
"Company"), and the purchaser identified on the signature page hereto (including
its successors and assigns, a "Lender").

     WHEREAS, subject to the terms and conditions set forth in this Agreement
and pursuant to Section 4(2) of the Securities Act of 1933, as amended (the
"Securities Act") and Rule 506 promulgated thereunder, the Company desires to
borrow from and issue and sell to the Lender, and the Lender desires to lend to
and buy from the Company, securities of the Company as more fully described in
this Agreement.

     NOW, THEREFORE, IN CONSIDERATION of the mutual covenants contained in this
Agreement, and for other good and valuable consideration the receipt and
adequacy of which are hereby acknowledged, the Company and the Lender agree as
follows:

                                   ARTICLE I.
                                   DEFINITIONS

1.1 Definitions. In addition to the terms defined elsewhere in this Agreement:
(a) capitalized terms that are not otherwise defined herein have the meanings
given to such terms in the Warrants (as defined herein), and (b) the following
terms have the meanings indicated in this Section 1.1:

          "AAA" shall mean the American Arbitration Association.

          "Action" shall have the meaning ascribed to such term in Section
     3.1(j).

          "Acquiring Person" shall have the meaning ascribed to such term in
     Section 4.9.

          "Affiliate" means any Person that, directly or indirectly through one
     or more intermediaries, controls or is controlled by or is under common
     control with a Person, as such terms are used in and construed under Rule
     144 under the Securities Act. With respect to the Lender, any investment
     fund or managed account that is managed on a discretionary basis by the
     same investment manager as the Lender will be deemed to be an Affiliate of
     the Lender.

          "Closing" means each of the closings of the purchase and sale of the
     Securities pursuant to Section 2.2.

          "Closing Date" means, in the case of the first Closing, the Trading
     Day when all of the Transaction Documents have been executed and delivered
     by the applicable parties thereto, and all conditions precedent to (i) the
     Lender's obligations to pay the Investment Amount and (ii) the Company's
     obligations to deliver the Securities have been satisfied or waived, and,
     in the case of the second Closing, the date of draw down, pursuant to
     Section 2.1 of the second tranche of the Total Commitment.

<PAGE>

          "Commission" means the Securities and Exchange Commission.

          "Common Stock" means the common stock of the Company, par value $.001
     per share, and any other class of securities into which such securities may
     hereafter have been reclassified or changed into.

          "Common Stock Equivalents" means any securities of the Company or the
     Subsidiaries which would entitle the holder thereof to acquire at any time
     Common Stock, including, without limitation, any debt, preferred stock,
     rights, options, warrants or other instrument that is at any time
     convertible into or exercisable or exchangeable for, or otherwise entitles
     the holder thereof to receive, Common Stock or other securities that
     entitle the holder to receive, directly or indirectly, Common Stock.

          "Company Counsel" means Baker & McKenzie, LLP.

          "Disclosure Schedules" shall have the meaning ascribed to such term in
     Section 3.1.

          "Effective Date" means the date that the initial Registration
     Statement filed by the Company pursuant to the Registration Rights
     Agreement is first declared effective by the Commission.

          "Evaluation Date" shall have the meaning ascribed to such term in
     Section 3.1(r).

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

          "GAAP" shall have the meaning ascribed to such term in Section 3.1(h).

          "Knowledge" means, with respect to any statement made to the knowledge
     of a party, that the statement is based upon actual knowledge of the
     officers of such party having responsibility for the matter or matters that
     are the subject of the statement, after due inquiry.

          "Intellectual Property Rights" shall have the meaning ascribed to such
     term in Section 3.1(o).

          "Investment Amount" means, as to the Lender, the aggregate amount to
     be paid for the Note and Warrants purchased hereunder at each Closing Date
     as specified below the Lender's name on the signature page of this
     Agreement and next to the heading "Investment Amount", in United States
     Dollars and in immediately available funds.

                                       2
<PAGE>
          "Legend Removal Date" shall have the meaning ascribed to such term in
     Section 4.1(c).

          "Liens" means a lien, charge, security interest, encumbrance, right of
     first refusal, preemptive right or other restriction.

          "Material Adverse Effect" shall have the meaning assigned to such term
     in Section 3.1(b).

          "Material Permits" shall have the meaning ascribed to such term in
     Section 3.1(m).

          "Note" shall mean the senior secured promissory note issued or to be
     issued from time to time pursuant to this Agreement.

          "Notice" shall have the meaning ascribed to such term in Section 2.1.

          "Person" means an individual or corporation, partnership, trust,
     incorporated or unincorporated association, joint venture, limited
     liability company, joint stock company, government (or an agency or
     subdivision thereof) or other entity of any kind.

          "Proceeding" means an action, claim, suit, investigation or proceeding
     (including, without limitation, an investigation or partial proceeding,
     such as a deposition), whether commenced or threatened.

          "Lender Party" shall have the meaning ascribed to such term in Section
     4.12.

          "Registration Rights Agreement" means the Registration Rights
     Agreement, dated the date hereof, among the Company and the Lender, in the
     form of Exhibit A attached hereto.

          "Registration Statement" means a registration statement meeting the
     requirements set forth in the Registration Rights Agreement and covering
     the resale of the Underlying Shares and Warrant Shares by the Lender as
     provided for in the Registration Rights Agreement.

          "Required Approvals" shall have the meaning ascribed to such term in
     Section 3.1(e).

          "Rule 144" means Rule 144 promulgated by the Commission pursuant to
     the Securities Act, as such Rule may be amended from time to time, or any
     similar rule or regulation hereafter adopted by the Commission having
     substantially the same effect as such Rule.

          "SEC Reports" shall have the meaning ascribed to such term in Section
     3.1(h).

<PAGE>

          "Securities" means the Underlying Shares, the Note, the Warrants and
     the Warrant Shares.

          "Securities Act" means the Securities Act of 1933, as amended.

          "Shares" means the shares of Common Stock issuable to the Lender
     pursuant to this Agreement, par value $.001 per share.

          "Short Sales" shall include all "short sales" as defined in Rule 200
     of Regulation SHO under the Exchange Act (but shall not be deemed to
     include the location and/or reservation of borrowable shares of Common
     Stock).

          "Subsidiary" means any subsidiary of the Company as set forth on
     Schedule 3.1(a).

          "Total Commitment" shall have the meaning set forth in Section 2.2.

          "Trading Day" means a day on which the Common Stock is traded on a
     Trading Market.

          "Trading Market" means the following markets or exchanges on which the
     Common Stock is listed or quoted for trading on the date in question: the
     Nasdaq Capital Market, the American Stock Exchange, the New York Stock
     Exchange, the Nasdaq National Market or the OTC Bulletin Board.

          "Transaction Documents" means this Agreement, the Note, the Warrants,
     the Registration Rights Agreement and any other documents or agreements
     executed in connection with the transactions contemplated hereunder.

          "Underlying Shares" shall mean the shares of Common Stock, issuable
     upon conversion of the Note, including Principal and any interest accrued
     thereon.

          "Warrants" means collectively the Common Stock purchase warrants, in
     the form of Exhibit B delivered to the Lender at the Closing in accordance
     with Section 2.3(a) hereof, which Warrants shall be exercisable immediately
     and have a term of exercise equal to four years.

          "Warrant Shares" means the shares of Common Stock issuable upon
     exercise of the Warrants.

                                   ARTICLE II.
                      SENIOR SECURITY OF THE NOTE & CLOSING

     2.1  Seniority and Security

                                       4
<PAGE>
     The Note and this loan obligation shall be senior to all existing and
future indebtedness of the Company and shall be secured by the Company's
ownership interest in all its subsidiaries. The Company hereby assigns, grants
and pledges to the Lender for its benefit a continuing security interest in all
of the Company's now existing and hereafter acquired assets, including its
ownership interest in the Company's subsidiaries, rights, properties, interests,
accounts and other tangible and intangible assets as more fully described in
Annex A hereto (collectively the "Collateral") which is incorporated herein and
made a part hereof. This Agreement secures the full and prompt performance of
all of the obligations of the Company to the Lender arising from the Note and
this Agreement (collectively the "Obligations").

     2.2  Commitment and Closings.

     The Lender hereby commits to invest in the Company a total amount of up to
US$2,500,000 (the "Total Commitment") at the closing ("Closing").

     2.3  Deliveries.

          (a) On each Closing Date (except in the case of items (i), (iv) and
     (v), which shall be delivered on the first Closing Date), the Company shall
     deliver or cause to be delivered to the Lender the following:

               (i) this Agreement duly executed by the Company;

               (ii) the Note or Underlying Shares applicable to such closing;

               (iii) a Warrant registered in the name of the Lender exercisable
          into a number of shares of Common Stock equal to 100% of Underlying
          Shares, with an exercise price equal to $0.25 per Share, subject to
          adjustment therein;

               (iv) the legal opinion of Company Counsel, in agreed form,
          addressed to the Lender; and

               (v) the Registration Rights Agreement, duly executed by the
          Company.

          (b) On each Closing Date (except in the case of items (i) and (iii),
     which shall be delivered on the first Closing Date), the Lender shall
     deliver or cause to be delivered to the Company the following:

               (i) this Agreement duly executed by the Lender;

               (ii) the Lender's applicable Investment Amount by wire transfer
          to the account as specified in writing by the Company; and

               (iii) the Registration Rights Agreement, duly executed by the
          Lender.

     2.4  Closing Conditions.

                                       5
<PAGE>
          (a) The obligations of the Company hereunder in connection with the
     Closings are subject to the following conditions being met:

               (i) the accuracy in all material respects when made and on each
          Closing Date of the representations and warranties of the Lender
          contained herein;

               (ii) all obligations, covenants and agreements of the Lender
          required to be performed at or prior to each Closing Date shall have
          been performed; and

               (iii) the delivery by the Lender of the items set forth in
          Section 2.3(b) of this Agreement.

               (iv) the waiver, non-exercise or satisfaction of any
          participation rights, right of first refusal or any other similar
          rights by any prior investors.

          (b) The respective obligations of the Lender hereunder in connection
     with the Closings are subject to the following conditions being met:

               (i) the accuracy in all material respects on each Closing Date of
          the representations and warranties of the Company contained herein;

               (ii) all obligations, covenants and agreements of the Company
          required to be performed at or prior to each Closing Date shall have
          been performed;

               (iii) the delivery by the Company of the items set forth in
          Section 2.3(a) of this Agreement;

               (iv) since the date of execution of this Agreement, no event or
          series of events shall have occurred that reasonably could have or
          result in (i) an adverse effect on the legality, validity or
          enforceability of any Transaction Document, or (ii) a Material Adverse
          Effect;

               (v) 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 that prohibits the consummation of any of the
          transactions contemplated by the Transaction Documents; and

               (vi) from the date hereof to the Closing Date, trading in the
          Common Stock shall not have been suspended by the Commission or the
          Company's principal Trading Market (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 shall not have been suspended or limited,
          or minimum prices shall not have been established on securities whose
          trades are reported by such service, or on any Trading Market, nor
          shall a banking moratorium have been declared either by the United
          States or New York State authorities nor shall there have occurred any
          material outbreak or escalation of hostilities or other national or
          international calamity of such magnitude in its effect on, or any
          material adverse change in, any financial market which, in each case,
          in the reasonable judgment of the Lender, makes it impracticable or
          inadvisable to purchase the Note at the Closing.

                                       6
<PAGE>
               (vii) the waiver, non-exercise or satisfaction of any
          participation rights, right of first refusal or any other similar
          rights by any prior investors to the satisfaction of the Lender.

               (viii) the detailed projection of the Company's TV Shopping
          Project use of funds and its business plan to the satisfaction of the
          Lender.

                                  ARTICLE III.
                         REPRESENTATIONS AND WARRANTIES

     3.1 Representations and Warranties of the Company. Except as set forth
under the corresponding section of the disclosure schedules delivered to the
Lender concurrently herewith (the "Disclosure Schedules") which Disclosure
Schedules shall be deemed a part hereof, the Company hereby makes the
representations and warranties set forth below to the Lender.

          (a) Subsidiaries. All of the direct and indirect subsidiaries of the
     Company are set forth on Schedule 3.1(a). The Company owns, directly or
     indirectly, all of the capital stock or other equity interests of each
     Subsidiary free and clear of any Liens, and all the issued and outstanding
     shares of capital stock of each Subsidiary are validly issued and are fully
     paid, non-assessable and free of preemptive and similar rights to subscribe
     for or purchase securities. If the Company has no subsidiaries, then
     references in the Transaction Documents to the Subsidiaries will be
     disregarded.

          (b) Organization and Qualification. The Company and each of the
     Subsidiaries is an entity duly incorporated or otherwise organized, validly
     existing and in good standing under the laws of the jurisdiction of its
     incorporation or organization (as applicable), with the requisite power and
     authority to own and use its properties and assets and to carry on its
     business as currently conducted. Neither the Company nor any Subsidiary is
     in violation or default of any of the provisions of its respective
     certificate or articles of incorporation, bylaws or other organizational or
     charter documents. Each of the Company and the Subsidiaries is duly
     qualified to conduct business and is in good standing as a foreign
     corporation or other entity in each jurisdiction in which the nature of the
     business conducted or property owned by it makes such qualification
     necessary, except where the failure to be so qualified or in good standing,
     as the case may be, could not, individually, or in the aggregate, have or
     reasonably be expected to result in (i) a material adverse effect on the
     legality, validity or enforceability of any Transaction Document, (ii) a
     material adverse effect on the results of operations, assets, business,
     prospects or condition (financial or otherwise) of the Company and the
     Subsidiaries, taken as a whole, or (iii) a material adverse effect on the
     Company's ability to perform in any material respect on a timely basis its
     obligations under any Transaction Document (any of (i), (ii) or (iii), a
     "Material Adverse Effect") and no Proceeding has been instituted in any
     such jurisdiction revoking, limiting or curtailing or seeking to revoke,
     limit or curtail such power and authority or qualification.

                                       7
<PAGE>
          (c) Authorization; Enforcement. The Company has the requisite
     corporate power and authority to enter into and to consummate the
     transactions contemplated by each of the Transaction Documents and
     otherwise to carry out its obligations hereunder and thereunder. The
     execution and delivery of each of the Transaction Documents by the Company
     and the consummation by it of the transactions contemplated thereby have
     been duly authorized by all necessary action on the part of the Company and
     no further action is required by the Company, its board of directors or its
     stockholders in connection therewith other than in connection with the
     Required Approvals. Each Transaction Document has been (or upon delivery
     will have been) duly executed by the Company and, when delivered in
     accordance with the terms hereof and thereof, will constitute the valid and
     binding obligation of the Company enforceable against the Company in
     accordance with its terms except (i) as limited by applicable bankruptcy,
     insolvency, reorganization, moratorium and other laws of general
     application affecting enforcement of creditors' rights generally and (ii)
     as limited by laws relating to the availability of specific performance,
     injunctive relief or other equitable remedies.

          (d) No Conflicts. The execution, delivery and performance of the
     Transaction Documents by the Company and the consummation by the Company of
     the other transactions contemplated hereby and thereby do not and will not:
     (i) conflict with or violate any provision of the Company's or any
     Subsidiary's certificate or articles of incorporation, bylaws or other
     organizational or charter documents, or (ii) conflict with, or constitute a
     default (or an event that with notice or lapse of time or both would become
     a default) under, result in the creation of any Lien upon any of the
     properties or assets of the Company or any Subsidiary, or give to others
     any rights of termination, amendment, acceleration or cancellation (with or
     without notice, lapse of time or both) of, any agreement, credit facility,
     debt or other instrument (evidencing a Company or Subsidiary debt or
     otherwise) or other understanding to which the Company or any Subsidiary is
     a party or by which any property or asset of the Company or any Subsidiary
     is bound or affected, or (iii) subject to the Required Approvals, conflict
     with or result in a violation of any law, rule, regulation, order,
     judgment, injunction, decree or other restriction of any court or
     governmental authority to which the Company or a Subsidiary is subject
     (including federal and state securities laws and regulations), or by which
     any property or asset of the Company or a Subsidiary is bound or affected;
     except in the case of each of clauses (ii) and (iii), such as could not,
     individually, or in the aggregate, have or reasonably be expected to result
     in a Material Adverse Effect.

          (e) Filings, Consents and Approvals. The Company is not required to
     obtain any consent, waiver, authorization or order of, give any notice to,
     or make any filing or registration with, any court or other federal, state,
     local or other governmental authority or other Person in connection with
     the execution, delivery and performance by the Company of the Transaction
     Documents, other than (i) filings required pursuant to Section 4.8, (ii)

                                       8
<PAGE>
     the filing with the Commission of one or more Registration Statements in
     accordance with the requirements of the Registration Rights Agreement,
     (iii) filings required by state securities laws in accordance with the
     requirements of the Registration Rights Agreement, which when permitted,
     will be made prior to the Effectiveness Date (as such term is defined in
     the Registration Rights Agreement), (iv) the notice and/or application(s)
     to each applicable Trading Market for the issuance and sale of the Note,
     Warrants and the listing of the Underlying Shares and Warrant Shares for
     trading thereon in the time and manner required thereby and (v) the filing
     of Form D with the Commission and such filings as are required to be made
     under applicable state securities laws (collectively, the "Required
     Approvals").

          (f) Issuance of the Securities. The Securities are duly authorized
     and, when issued and paid for in accordance with the applicable Transaction
     Documents, will be duly and validly issued, fully paid and nonassessable,
     free and clear of all Liens other than restrictions on transfer provided
     for in the Transaction Documents. The Underlying Shares, when issued upon
     exercise of the Note, will be validly issued, fully paid and nonassessable,
     free and clear of all Liens. The Warrant Shares, when issued in accordance
     with the terms of the Transaction Documents, will be validly issued, fully
     paid and nonassessable, free and clear of all Liens. The Company has
     reserved from its duly authorized capital stock the shares of Common Stock
     issuable pursuant to this Agreement, the Note and the Warrants in order to
     issue the Underlying Shares and the Warrant Shares. The Securities are not
     subject to any preemptive or similar rights to subscribe for or purchase
     securities.

          (g) Capitalization. Other than disclosed in the SEC Reports and as set
     forth on Schedule 3.1(g), the Company has not issued any capital stock
     other than pursuant to the exercise of employee stock options under the
     Company's stock option plans, the issuance of shares of Common Stock to
     employees pursuant to the Company's employee stock purchase plan and
     pursuant to the conversion or exercise of outstanding Common Stock
     Equivalents all as set forth on Schedule 3.1(g). No securities of the
     Company are entitled to preemptive or similar rights and no Person has any
     right of first refusal, preemptive right, right of participation, or any
     similar right to participate in the transactions contemplated by the
     Transaction Documents. As of the date of this Agreement, except as
     disclosed in the SEC Reports and as set forth in Schedule 3.1(g) and as a
     result of the purchase and sale of the Warrants, there are no outstanding
     options, warrants, script rights to subscribe to, calls or commitments of
     any character whatsoever relating to, or securities, rights or obligations
     convertible into or exercisable or exchangeable for, or giving any Person
     any right to subscribe for or acquire, any shares of the capital stock of
     the Company, or contracts, commitments, understandings or arrangements by
     which the Company or any Subsidiary is or may become bound to issue
     additional shares of its capital stock, or securities or rights convertible
     or exchangeable into shares of Common Stock. The issuance and sale of the
     Securities will not obligate the Company to issue shares of Common Stock or
     other securities to any Person (other than the Lender) and will not result
     in a right of any holder of Company securities to adjust the exercise,
     conversion, exchange or reset price under such securities. All of the
     outstanding shares of capital stock of the Company are validly issued,
     fully paid and nonassessable, have been issued in compliance with all
     federal and state securities laws, and none of such outstanding shares was
     issued in violation of any preemptive rights or similar rights to subscribe
     for or purchase securities. No further approval or authorization of any
     stockholder, the Board of Directors of the Company or others is required
     for the issuance and sale of the Securities. There are no stockholders
     agreements, voting agreements or other similar agreements with respect to
     the Company's capital stock to which the Company is a party or, to the
     Knowledge of the Company, between or among any of the Company's
     stockholders.

                                       9
<PAGE>
          (h) SEC Reports; Financial Statements. The Company has filed all
     reports, schedules, forms, statements and other documents required to be
     filed by it under the Securities Act and the Exchange Act, including
     pursuant to Section 13(a) or 15(d) thereof, for the two years preceding the
     date hereof (or such shorter period as the Company was required by law to
     file such material) (the foregoing materials, including the exhibits
     thereto and documents incorporated by reference therein, being collectively
     referred to herein as the "SEC Reports") on a timely basis or has received
     a valid extension of such time of filing and has filed any such SEC Reports
     prior to the expiration of any such extension. As of their respective
     dates, the SEC Reports complied in all material respects with the
     requirements of the Securities Act and the Exchange Act and the rules and
     regulations of the Commission promulgated thereunder, and none of the SEC
     Reports, when filed, contained 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 the light of the circumstances
     under which they were made, not misleading. The financial statements of the
     Company included in the SEC Reports comply in all material respects with
     applicable accounting requirements and the rules and regulations of the
     Commission with respect thereto as in effect at the time of filing. Such
     financial statements have been prepared in accordance with United States
     generally accepted accounting principles applied on a consistent basis
     during the periods involved ("GAAP"), except as may be otherwise specified
     in such financial statements or the notes thereto, and fairly present in
     all material respects the financial position of the Company and its
     consolidated Subsidiaries as of and for 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, immaterial, year-end audit
     adjustments. The Company maintains and will continue to maintain a standard
     system of accounting established and administered in accordance with GAAP
     and the applicable requirements of the Exchange Act.

          (i) Material Changes. Since the date of the latest audited financial
     statements included within the SEC Reports, except as specifically
     disclosed in the SEC Reports, (i) there has been no event, occurrence or
     development that has had or that, individually, or in the aggregate, could
     reasonably be expected to result in a Material Adverse Effect, (ii) the
     Company has not incurred any liabilities (contingent or otherwise) other
     than (A) trade payables and accrued expenses incurred in the ordinary
     course of business consistent with past practice, (B) liabilities not

                                       10
<PAGE>
     required to be reflected in the Company's financial statements pursuant to
     GAAP or required to be disclosed in filings made with the Commission, and
     (C) other liabilities that would not, individually or in the aggregate,
     have a Material Adverse Effect, (iii) the Company has not altered its
     method of accounting or the identity of its auditors, (iv) the Company has
     not declared or made any dividend or distribution of cash or other property
     to its stockholders or purchased, redeemed or made any agreements to
     purchase or redeem any shares of its capital stock and (v) the Company has
     not issued any equity securities to any officer, director or Affiliate,
     except pursuant to existing Company stock option plans. The Company does
     not have pending before the Commission any request for confidential
     treatment of information. Except for the issuance of the Securities
     contemplated by this Agreement or as set forth on Schedule 3.1(i), no
     event, liability or development has occurred or exists with respect to the
     Company or its Subsidiaries or their respective business, properties,
     operations or financial condition, that would be required to be disclosed
     by the Company under applicable securities laws at the time this
     representation is made that has not been publicly disclosed 1 Trading Day
     prior to the date that this representation is made.

          (j) Litigation. Other than as otherwise disclosed in Schedule 3.1(j)
     there is no action, suit, inquiry, notice of violation, proceeding or
     investigation pending or, to the Knowledge of the Company, threatened
     against or affecting the Company, any Subsidiary or any of their respective
     properties before or by any court, arbitrator, governmental or
     administrative agency or regulatory authority (federal, state, county,
     local or foreign) (collectively, an "Action") which (i) adversely affects
     or challenges the legality, validity or enforceability of any of the
     Transaction Documents or the Securities or (ii) could if there were an
     unfavorable decision, individually, or in the aggregate, have or reasonably
     be expected to result in a Material Adverse Effect. Neither the Company nor
     any Subsidiary, nor any director or officer thereof, is or has been the
     subject of any Action involving a claim of violation of or liability under
     federal or state securities laws or a claim of breach of fiduciary duty.
     There has not been, and to the Knowledge of the Company, there is not
     pending or contemplated, any investigation by the Commission involving the
     Company or any current or former director or officer of the Company. The
     Commission has not issued any stop order or other order suspending the
     effectiveness of any registration statement filed by the Company or any
     Subsidiary under the Exchange Act or the Securities Act. None of the
     Company's or its Subsidiaries' employees is a member of a union that
     relates to such employee's relationship with the Company, and neither the
     Company or any of its Subsidiaries is a party to a collective bargaining
     agreement, and the Company and its Subsidiaries believe that their
     relationships with their employees are good. No executive officer, to the
     Knowledge of the Company, is, or is now expected to be, in violation of any
     material term of any employment contract, confidentiality, disclosure or
     proprietary information agreement or non-competition agreement, or any
     other contract or agreement or any restrictive covenant, and the continued
     employment of each such executive officer does not subject the Company or
     any of its Subsidiaries to any liability with respect to any of the
     foregoing matters. The Company and its Subsidiaries are in compliance with
     all U.S. federal, state, local and foreign laws and regulations relating to
     employment and employment practices, terms and conditions of employment and
     wages and hours, except where the failure to be in compliance could not,
     individually or in the aggregate, reasonably be expected to have a Material
     Adverse Effect.

                                       11
<PAGE>
          (k) Labor Relations. No material labor dispute exists or, to the
     Knowledge of the Company, is imminent with respect to any of the employees
     of the Company which could reasonably be expected to result in a Material
     Adverse Effect.

          (l) Compliance. Neither the Company nor any Subsidiary (i) is in
     default under or in violation of (and no event has occurred that has not
     been waived that, with notice or lapse of time or both, would result in a
     default by the Company or any Subsidiary under), nor has the Company or any
     Subsidiary received notice of a claim that it is in default under or that
     it is in violation of, any indenture, loan or credit agreement or any other
     agreement or instrument to which it is a party or by which it or any of its
     properties is bound (whether or not such default or violation has been
     waived), (ii) is in violation of any order of any court, arbitrator or
     governmental body, or (iii) is or has been in violation of any statute,
     rule or regulation of any governmental authority, including without
     limitation all foreign, federal, state and local laws applicable to its
     business and all such laws that affect the environment, except in each case
     as could not, individually, or in the aggregate, have a Material Adverse
     Effect. The Company is in compliance with all effective requirements of the
     Sarbanes-Oxley Act of 2002, as amended, and the rules and regulations
     thereunder, that are applicable to it, except where such noncompliance,
     individually or in the aggregate, could not have or reasonably be expected
     to result in a Material Adverse Effect.

          (m) Regulatory Permits. The Company and the Subsidiaries possess all
     certificates, authorizations and permits issued by the appropriate federal,
     state, local or foreign regulatory authorities necessary to conduct their
     respective businesses as described in the SEC Reports, except where the
     failure to possess such permits could not, individually, or in the
     aggregate, have or reasonably be expected to result in a Material Adverse
     Effect ("Material Permits"), and neither the Company nor any Subsidiary has
     received any notice of proceedings relating to the revocation or
     modification of any Material Permit.

          (n) Title to Assets. The Company and the Subsidiaries have good and
     marketable title in fee simple to all real property owned by them that is
     material to the business of the Company and the Subsidiaries and good and
     marketable title in all personal property owned by them that is material to
     the business of the Company and the Subsidiaries. Any real property and
     facilities held under lease by the Company and the Subsidiaries are held by
     them under valid, subsisting and enforceable leases of which the Company
     and the Subsidiaries are in compliance.

          (o) Patents and Trademarks. The Company and the Subsidiaries have, or
     have rights to use, all patents, patent applications, trademarks, trademark
     applications, service marks, trade names, trade secrets, inventions,
     copyrights, licenses and other intellectual property rights or similar
     rights necessary or material for use in connection with their respective

                                       12
<PAGE>
     businesses as described in the SEC Reports and which the failure to so have
     could, individually, or in the aggregate, have or reasonably be expected to
     have a Material Adverse Effect (collectively, the "Intellectual Property
     Rights"). Neither the Company nor any Subsidiary has received a notice
     (written or otherwise) that the Intellectual Property Rights used by the
     Company or any Subsidiary violates or infringes upon the rights of any
     Person. All such Intellectual Property Rights are enforceable and do not
     violate or infringe the Intellectual Property Rights of others in any
     respect that would, individually or in the aggregate, reasonably be
     expected to result in a Material Adverse Effect and, to the Knowledge of
     the Company, there is no existing infringement by another Person of any of
     the Company's or the Subsidiary's Intellectual Property Rights. The Company
     and its Subsidiaries have taken reasonable security measures to protect the
     secrecy, confidentiality and value of all of their intellectual properties,
     except where failure to do so could not, individually or in the aggregate,
     reasonably be expect to have a Material Adverse Effect.

          (p) Insurance. The Company and the Subsidiaries are insured by
     insurers of recognized financial responsibility against such losses and
     risks and in such amounts as are prudent and customary in the businesses in
     which the Company and the Subsidiaries are engaged, including, but not
     limited to, directors and officers insurance coverage at least equal to the
     aggregate Investment Amount. To the best Knowledge of the Company, such
     insurance contracts and policies are accurate and complete. Neither the
     Company nor any Subsidiary has any reason to believe that it will not be
     able to renew its existing insurance coverage as and when such coverage
     expires or to obtain similar coverage from similar insurers as may be
     necessary to continue its business without a significant increase in cost.

          (q) Transactions With Affiliates and Employees. Except as set forth in
     the SEC Reports, none of the officers or directors of the Company and, to
     the Knowledge of the Company, none of the employees of the Company is
     presently a party to any transaction with the Company or any Subsidiary
     (other than for services as employees, officers and directors), including
     any contract, agreement or other arrangement providing for the furnishing
     of services to or by, providing for rental of real or personal property to
     or from, or otherwise requiring payments to or from any officer, director
     or such employee or, to the Knowledge of the Company, any entity in which
     any officer, director, or any such employee has a substantial interest or
     is an officer, director, trustee or partner.

          (r) Sarbanes-Oxley; Internal Accounting Controls. The Company is in
     compliance with all provisions of the Sarbanes-Oxley Act of 2002 which are
     applicable to it as of the Closing Date. The Company and the Subsidiaries
     maintain a system of internal accounting controls sufficient 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
     action is taken with respect to any differences. The Company has
     established disclosure controls and procedures (as defined in Exchange Act
     Rules 13a-15(e) and 15d-15(e)) for the Company and designed such disclosure
     controls and procedures to ensure that material information relating to the
     Company, including its Subsidiaries, is made known to the certifying

                                       13
<PAGE>
     officers by others within those entities, particularly during the period in
     which the Company's most recently filed periodic report under the Exchange
     Act, as the case may be, is being prepared. The Company's certifying
     officers have evaluated the effectiveness of the Company's controls and
     procedures as of the date prior to the filing date of the most recently
     filed periodic report under the Exchange Act (such date, the "Evaluation
     Date"). The Company presented in its most recently filed periodic report
     under the Exchange Act the conclusions of the certifying officers about the
     effectiveness of the disclosure controls and procedures based on their
     evaluations as of the Evaluation Date. Since the Evaluation Date, there
     have been no significant changes in the Company's internal controls (as
     such term is defined in Item 307(b) of Regulation S-K under the Exchange
     Act) or, to the Knowledge of the Company, in other factors that could
     significantly affect the Company's internal controls.

          (s) Private Placement. Assuming the accuracy of the Lender's
     representations and warranties set forth in Section 3.2, no registration
     under the Securities Act is required for the offer and sale of the
     Securities by the Company to the Lender as contemplated hereby. The
     issuance and sale of the Securities hereunder does not contravene the rules
     and regulations of the Trading Market. Except as described in Schedule
     3.1(s), the Company has not granted or agreed to grant to any Person any
     rights (including "piggy-back" registration rights) to have any securities
     of the Company registered with the Commission or any other governmental
     authority that have not been satisfied.

          (t) Investment Company. The Company is not, and is not an Affiliate
     of, and immediately after receipt of payment for the Securities, will not
     be or be an Affiliate of, an "investment company" within the meaning of the
     Investment Company Act of 1940, as amended. The Company shall conduct its
     business in a manner so that it will not become subject to the Investment
     Company Act.

          (u) Registration Rights. The Lender has the right to cause the Company
     to effect the registration under the Securities Act of the Securities that
     such Lender holds.

          (v) Listing and Maintenance Requirements. The Company's Common Stock
     is registered pursuant to Section 12(g) of the Exchange Act, and the
     Company has taken no action designed to, or which to its Knowledge is
     likely to have the effect of, terminating the registration of the Common
     Stock under the Exchange Act nor has the Company received any notification
     that the Commission is contemplating terminating such registration. The
     Company has not, in the 24 months preceding the date hereof, received
     notice from any Trading Market on which the Common Stock is or has been
     listed or quoted to the effect that the Company is not in compliance with
     the listing or maintenance requirements of such Trading Market. The Company
     is, and has no reason to believe that it will not in the foreseeable future
     continue to be, in compliance with all such listing and maintenance
     requirements. The issuance and sale of the Securities under the Transaction
     Documents does not contravene the rules and regulations of the Trading
     Market on which the Common Stock is currently listed or quoted, and no
     approval of the stockholders of the Company thereunder is required for the
     Company to issue and deliver to the Lender the Securities contemplated by
     the Transaction Documents. As of the date hereof, the Company's Common
     Stock is listed on the OTC Bulletin Board.

                                       14
<PAGE>
          (w) Disclosure. The Company confirms that neither it nor any other
     Person acting on its behalf has provided the Lender or its agents or
     counsel with any information that constitutes or might constitute material,
     nonpublic information. The Company understands and confirms that the Lender
     will rely on the foregoing representations and covenants in effecting
     transactions in securities of the Company. All disclosure provided to the
     Lender regarding the Company, its business and the transactions
     contemplated hereby, including the Disclosure Schedules to this Agreement,
     furnished by or on behalf of the Company with respect to the
     representations and warranties made herein are true and correct with
     respect to such representations and warranties and do not contain any
     untrue statement of a material fact or omit to state any material fact
     necessary in order to make the statements made therein, in light of the
     circumstances under which they were made, not misleading. The Company
     acknowledges and agrees that the Lender makes or has made any
     representations or warranties with respect to the transactions contemplated
     hereby other than those specifically set forth in Section 3.2 hereof.

          (x) No Integrated Offering. Neither the Company, nor any of its
     Affiliates, nor any Person acting on its or their behalf has, directly or
     indirectly, made any offers or sales of any security or solicited any
     offers to buy any security, under circumstances that would cause this
     offering of the Securities to be integrated with prior offerings by the
     Company for purposes of the Securities Act or any applicable shareholder
     approval provisions, including, without limitation, under the rules and
     regulations of any Trading Market on which any of the securities of the
     Company are listed or designated.

          (y) Solvency. Based on the financial condition of the Company as of
     the Closing Date after giving effect to the receipt by the Company of the
     proceeds from the sale of the Securities hereunder, (i) the Company's cash
     and fair saleable value of its assets in an orderly liquidation exceeds the
     amount that will be required to be paid on or in respect of the Company's
     existing debts and other liabilities (including known contingent
     liabilities) as they mature; (ii) the Company's assets do not constitute
     unreasonably small capital to carry on its business for the current fiscal
     year as now conducted and as proposed to be conducted including its capital
     needs taking into account the particular capital requirements of the
     business conducted by the Company, and projected capital requirements and
     capital availability thereof; and (iii) the current cash flow of the
     Company, together with the proceeds the Company would receive, were it to
     liquidate all of its assets, after taking into account all anticipated uses
     of the cash, would be sufficient to pay all amounts on or in respect of its
     debt when such amounts are required to be paid. The Company does not intend
     to incur debts beyond its ability to pay such debts as they mature (taking
     into account the timing and amounts of cash to be payable on or in respect
     of its debt). The Company has no Knowledge of any facts or circumstances
     which lead it to believe that it will file for reorganization or
     liquidation under the bankruptcy or reorganization laws of any jurisdiction
     within one year from the Closing Date.

                                       15
<PAGE>
          (z) Tax Status. Except for matters that would not, individually or in
     the aggregate, have or reasonably be expected to result in a Material
     Adverse Effect, the Company and each Subsidiary has filed all necessary
     federal, state and foreign income and franchise tax returns and has paid or
     accrued all taxes shown as due thereon, and the Company has no Knowledge of
     a tax deficiency which has been asserted or threatened against the Company
     or any Subsidiary.

          (aa) No General Solicitation. Neither the Company nor any person
     acting on behalf of the Company has offered or sold any of the Securities
     by any form of general solicitation or general advertising. The Company has
     offered the Securities for sale only to the Lender.

          (bb) No Disagreements with Accountants and Lawyers. There are no
     disagreements of any kind presently existing, or reasonably anticipated by
     the Company to arise, between the accountants and lawyers formerly or
     presently employed by the Company and the Company is current with respect
     to any fees owed to its accountants and lawyers.

          (cc) Acknowledgment Regarding Lender's Purchase of Securities. The
     Company acknowledges and agrees that the Lender is acting solely in the
     capacity of an arm's length purchaser with respect to the Transaction
     Documents and the transactions contemplated hereby. The Company further
     acknowledges that any advice given by the Lender or any of its respective
     representatives or agents in connection with this Agreement and the
     transactions contemplated hereby is merely incidental to the Lender's
     purchase of the Securities. The Company further represents to the Lender
     that the Company's decision to enter into this Agreement has been based
     solely on the independent evaluation of the transactions contemplated
     hereby by the Company and its representatives.

          (dd) Acknowledgement Regarding Lender's Trading Activity. Anything in
     this Agreement or elsewhere herein to the contrary notwithstanding, it is
     understood and agreed by the Company (i) that the Lender has not been asked
     to agree, nor has the Lender agreed, to desist from purchasing or selling,
     long and/or short, securities of the Company, or "derivative" securities
     based on securities issued by the Company or to hold the Securities for any
     specified term; (ii) that past or future open market or other transactions
     by the Lender, including Short Sales, and specifically including, without
     limitation, Short Sales or "derivative" transactions, before or after the
     closing of this or future private placement transactions, may negatively
     impact the market price of the Company's publicly-traded securities; (iii)
     that the Lender, and counter parties in "derivative" transactions to which
     the Lender is a party, directly or indirectly, presently may have a "short"
     position in the Common Stock, and (iv) that the Lender shall not be deemed
     to have any affiliation with or control over any arm's length counter-party
     in any "derivative" transaction. The Company further understands and
     acknowledges that (a) the Lender may engage in hedging activities at
     various times during the period that the Securities are outstanding,
     including, without limitation, during the periods that the value of the
     Warrant Shares deliverable with respect to Securities are being determined

                                       16
<PAGE>

     and (b) such hedging activities (if any) could reduce the value of the
     existing stockholders' equity interests in the Company at and after the
     time that the hedging activities are being conducted. The Company
     acknowledges that such aforementioned hedging activities do not constitute
     a breach of any of the Transaction Documents.

          (ee) Manipulation of Price. The Company has not, and to its Knowledge
     no one acting on its behalf has, (i) taken, directly or indirectly, any
     action designed to cause or to result in the stabilization or manipulation
     of the price of any security of the Company to facilitate the sale or
     resale of any of the Securities, (ii) sold, bid for, purchased, or, paid
     any compensation for soliciting purchases of, any of the Securities (other
     than for the placement agent's placement of the Securities), or (iii) paid
     or agreed to pay to any person any compensation for soliciting another to
     purchase any other securities of the Company.

          (ff) Press Releases. The press releases disseminated by the Company
     during the two (2) years preceding the date of this Agreement taken as a
     whole do not contain any untrue statement of a material fact or omit 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.

          (gg) No Additional Agreements. The Company does not have any agreement
     or understanding with the Lender with respect to the transactions
     contemplated by the Transaction Documents other than as specified in the
     Transaction Documents.

          (hh) TV Shopping Project. The Company has secured the right to work
     with CCTV Shopping Company, Ltd., an affiliate of the China Central
     Television Station, a state-owned national television network and will
     immediately commence the TV shopping operation upon the Closing.

     3.2 Representations and Warranties of the Lender. The Lender hereby
represents and warrants as of the Closing Date to the Company as follows:

          (a) Organization; Authority. The Lender is an entity duly organized,
     validly existing and in good standing under the laws of the jurisdiction of
     its organization with the requisite corporate or partnership power and
     authority to enter into and to consummate the transactions contemplated by
     the Transaction Documents and otherwise to carry out its obligations
     hereunder and thereunder. The execution, delivery and performance by the
     Lender of the transactions contemplated by this Agreement have been duly
     authorized by all necessary corporate or similar action on the part of the
     Lender. Each Transaction Document to which it is a party has been duly
     executed by the Lender, and when delivered by the Lender in accordance with
     the terms hereof, will constitute the valid and legally binding obligation
     of the Lender, enforceable against it in accordance with its terms, except
     (i) as limited by general equitable principles and applicable bankruptcy,
     insolvency, reorganization, moratorium and other laws of general
     application affecting enforcement of creditors' rights generally, (ii) as
     limited by laws relating to the availability of specific performance,
     injunctive relief or other equitable remedies and (iii) insofar as
     indemnification and contribution provisions may be limited by applicable
     law.

                                       17
<PAGE>
          (b) Own Account. The Lender understands that the Securities are
     "restricted securities" and have not been registered under the Securities
     Act or any applicable state securities law and is acquiring the Securities
     as principal for its own account and not with a view to or for distributing
     or reselling such Securities or any part thereof in violation of the
     Securities Act or any applicable state securities law, has no present
     intention of distributing any of such Securities in violation of the
     Securities Act or any applicable state securities law and has no
     arrangement or understanding with any other persons regarding the
     distribution of such Securities (this representation and warranty not
     limiting the Lender's right to sell the Securities pursuant to the
     Registration Statement or otherwise in compliance with applicable federal
     and state securities laws) in violation of the Securities Act or any
     applicable state securities law. Subject to the immediately preceding
     sentence, nothing contained herein shall be deemed a representation or
     warranty by the Lender to hold the Securities for any period of time. The
     Lender is acquiring the Securities hereunder in the ordinary course of its
     business. The Lender does not have any agreement or understanding, directly
     or indirectly, with any Person to distribute any of the Securities.

          (c) Lender Status. At the time the Lender was offered the Securities,
     it was, and at the date hereof it is, and on each date on which it
     exercises any Warrants it will be either: (i) an "accredited investor" as
     defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7) or (a)(8) under the
     Securities Act or (ii) a "qualified institutional buyer" as defined in Rule
     144A(a) under the Securities Act. The Lender is not required to be
     registered as a broker-dealer under Section 15 of the Exchange Act.

          (d) Experience of the Lender. The Lender, either alone or together
     with its representatives, has such Knowledge, sophistication and experience
     in business and financial matters so as to be capable of evaluating the
     merits and risks of the prospective investment in the Securities, and has
     so evaluated the merits and risks of such investment. The Lender is able to
     bear the economic risk of an investment in the Securities and, at the
     present time, is able to afford a complete loss of such investment.

          (e) General Solicitation. The Lender is not purchasing the Securities
     as a result of any advertisement, article, notice or other communication
     regarding the Securities published in any newspaper, magazine or similar
     media or broadcast over television or radio or presented at any seminar or
     any other general solicitation or general advertisement.

          (f) Short Sales and Confidentiality Prior To The Date Hereof. Other
     than the transaction contemplated hereunder, the Lender has not directly or
     indirectly, nor has any Person acting on behalf of or pursuant to any
     understanding with the Lender, executed any disposition, including Short
     Sales, in the securities of the Company during the period commencing from
     the time that the Lender first received a term sheet from the Company or

                                       18
<PAGE>
     any other Person setting forth the material terms of the transactions
     contemplated hereunder until the date hereof. Notwithstanding the
     foregoing, in the case that the Lender is a multi-managed investment
     vehicle whereby separate portfolio managers manage separate portions of the
     Lender's assets and the portfolio managers have no direct Knowledge of the
     investment decisions made by the portfolio managers managing other portions
     of the Lender's assets, the representation set forth above shall only apply
     with respect to the portion of assets managed by the portfolio manager that
     made the investment decision to purchase the Securities covered by this
     Agreement. Other than to other Persons party to this Agreement, the Lender
     has maintained the confidentiality of all disclosures made to it in
     connection with this transaction (including the existence and terms of this
     transaction).

     The Company acknowledges and agrees that the Lender does not make or has
     not made any representations or warranties with respect to the transactions
     contemplated hereby other than those specifically set forth in this Section
     3.2.

                                   ARTICLE IV.
                         OTHER AGREEMENTS OF THE PARTIES

     4.1 Transfer Restrictions.

          (a) The Securities may only be disposed of in compliance with state
     and federal securities laws. In connection with any transfer of Securities
     other than pursuant to an effective registration statement or Rule 144, to
     the Company or to an affiliate of the Lender or in connection with a pledge
     as contemplated in Section 4.1(b), the Company may require the transferor
     thereof to provide to the Company an opinion of counsel selected by the
     transferor and reasonably acceptable to the Company, the form and substance
     of which opinion shall be reasonably satisfactory to the Company, to the
     effect that such transfer does not require registration of such transferred
     Securities under the Securities Act.

          (b) The Lender agrees to the imprinting, so long as is required by
     this Section 4.1(b), of a legend on any of the Securities in the following
     form:

          NEITHER THESE SECURITIES NOR THE SECURITIES INTO WHICH THESE
          SECURITIES ARE [EXERCISABLE] [CONVERTIBLE] HAVE BEEN REGISTERED WITH
          THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF
          ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE
          SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"), AND,
          ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN
          EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT
          TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO,
          THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE
          WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION
          OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH
          SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. THESE SECURITIES AND
          THE SECURITIES ISSUABLE UPON [EXERCISE] [CONVERSION] OF THESE
          SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN
          ACCOUNT OR OTHER LOAN SECURED BY SUCH SECURITIES.

                                       19
<PAGE>

          The Company acknowledges and agrees that the Lender may from time to
     time pledge pursuant to a bona fide margin agreement with a registered
     broker-dealer or grant a security interest in some or all of the Securities
     to a financial institution that is an "accredited investor" as defined in
     Rule 501(a) under the Securities Act and, if required under the terms of
     such arrangement, the Lender may transfer pledged or secured Securities to
     the pledgees or secured parties. Such a pledge or transfer would not be
     subject to approval of the Company and no legal opinion of legal counsel of
     the pledgee, secured party or pledgor shall be required in connection
     therewith. Further, no notice shall be required of such pledge. At the
     expense of the Lender, the Company will execute and deliver such reasonable
     documentation as a pledgee or secured party of Securities may reasonably
     request in connection with a pledge or transfer of the Securities,
     including, if the Securities are subject to registration pursuant to the
     Registration Rights Agreement, the preparation and filing of any required
     prospectus supplement under Rule 424(b)(3) under the Securities Act or
     other applicable provision of the Securities Act to appropriately amend the
     list of Selling Stockholders thereunder.

          (c) Certificates evidencing any of the Securities shall not contain
     any legend (including the legend set forth in Section 4.1(b) hereof): (i)
     whenever the Underlying Shares and Warrant Shares are registered for resale
     under the Securities Act, or (ii) following any sale or transfer of such
     Underlying Shares or Warrant Shares pursuant to Rule 144, or (iii) while
     such Underlying Shares or Warrant Shares are eligible for sale under Rule
     144(k), or (iv) if such legend is not required under applicable
     requirements of the Securities Act (including judicial interpretations and
     pronouncements issued by the staff of the Commission). The Company shall
     cause its counsel to issue a standing legal opinion to the Company's
     transfer agent promptly after the Effective Date if required by the
     Company's transfer agent to effect the removal of the legend hereunder.
     Following such time as restrictive legends are not required to be placed on
     certificates representing the Underlying Shares or Warrant Shares, the
     Company will, no later than three Trading Days following the delivery by
     the Lender to the Company or the Company's transfer agent of (i) a
     certificate representing such Underlying Shares or Warrant Shares
     containing a restrictive legend (endorsed or with stock power attached,
     signatures guaranteed, and otherwise in form necessary to affect reissuance
     and/ or transfer), or (ii) an exercise notice in the manner stated in the
     Warrants to affect the exercise of such Warrant in accordance with its
     terms (such third Trading Day, the "Legend Removal Date"), deliver or cause
     to be delivered to the Lender a certificate representing such Underlying
     Shares or Warrant Shares that is free from all restrictive and other
     legends. The Company may not make any notation on its records or give
     instructions to any transfer agent of the Company that enlarge the
     restrictions on transfer set forth in this Section. Certificates for
     Securities subject to legend removal hereunder shall be transmitted by the
     transfer agent of the Company to the Lender by crediting the account of the
     Lender's prime broker with the Depository Trust Company System.

                                       20
<PAGE>
     4.2 Acknowledgment of Dilution. The Company acknowledges that the issuance
of the Securities may result in dilution of the outstanding shares of Common
Stock, which dilution may be substantial under certain market conditions. The
Company further acknowledges that its obligations under the Transaction
Documents, including without limitation its obligation to issue the Underlying
Shares and Warrant Shares pursuant to the Transaction Documents, are
unconditional and absolute and not subject to any right of set off,
counterclaim, delay or reduction, regardless of the effect of any such dilution
or any claim the Company may have against the Lender and regardless of the
dilutive effect that such issuance may have on the ownership of the other
stockholders of the Company.

     4.3 Furnishing of Information. As long as the Lender owns Securities, the
Company covenants to timely file (or obtain extensions in respect thereof and
file within the applicable grace period) all reports required to be filed by the
Company after the date hereof pursuant to the Exchange Act. As long as the
Lender owns Securities, if the Company is not required to file reports pursuant
to the Exchange Act, it will prepare and furnish to the Lender and make publicly
available in accordance with Rule 144(c) such information as is required for the
Lender to sell the Securities under Rule 144. The Company further covenants that
it will take such further action as any holder of Securities may reasonably
request, all to the extent required from time to time to enable such Person to
sell such Securities without registration under the Securities Act within the
limitation of the exemptions provided by Rule 144.

     4.4 Integration. The Company shall not, and shall use its best efforts to
ensure that no Affiliate of the Company shall, sell, offer for sale or solicit
offers to buy or otherwise negotiate in respect of any security (as defined in
Section 2 of the Securities Act) that would be integrated with the offer or sale
of the Securities in a manner that would require the registration under the
Securities Act of the sale of the Securities to the Lender or that would be
integrated with the offer or sale of the Securities for purposes of the rules
and regulations of any Trading Market.

     4.5 Conversion. The Note, the principal and any accrued interest thereon
shall at any time, upon request of the Lender, in its sole discretion, subject
to receipt by the Company of due notice, automatically be converted into shares
of Common Stock, as such shares shall be constituted at the date of conversion,
at the conversion price of US$0.15 per share..,. Upon any conversion, the Lender
shall surrender the Note for conversion against receipt of one or more
certificate(s) representing the Underlying Shares, at the principal office of
the Company; provided however that any failure or delay in the delivery of the
Note shall not affect the Conversion. The Conversion of the Note in accordance
with its terms shall be a complete discharge of the Company's liability with
respect to the Note.

     4.6 Exercise Procedures. The form of Notice of Exercise included,
respectively, in each of the Warrants and the Note set forth the totality of the
procedures required of the Lender in order to exercise each of the Warrants or
the Note. No additional legal opinion or other information or instructions shall
be required of the Lender to exercise its Warrants or the Note. The Company
shall honor exercises of each of the Warrants and the Note and shall deliver

                                       21
<PAGE>
Warrant Shares and Underlying Shares in accordance with the terms, conditions
and time periods set forth in the Transaction Documents.

     4.7 TV Shopping Obligation. The proceeds from the Closing under this
Agreement shall be used mainly for the TV Shopping operation in cooperation with
the CCTV Shopping Company, Ltd. and other regional and local TV stations and
networks in China.

     4.8 Securities Laws Disclosure; Publicity. By 9:00 a.m. (New York time) on
the Trading Day following the execution of this Agreement, and by 9:00 a.m. (New
York time) on the Trading Day following the Closing Date, the Company shall
issue press releases disclosing the transactions contemplated hereby and the
Closing. On the Trading Day following the execution of this Agreement the
Company will file a Current Report on Form 8-K disclosing the material terms of
the Transaction Documents (and attach as exhibits thereto the Transaction
Documents), and on the Trading Day following the Closing Date the Company will
file an additional Current Report on Form 8-K to disclose the Closing. In
addition, the Company will make such other filings and notices in the manner and
time required by the Commission and the Trading Market on which the Common Stock
is listed. Notwithstanding the foregoing, the Company shall not publicly
disclose the name of the Lender, or include the name of the Lender in any filing
with the Commission (other than the Registration Statement and any exhibits to
filings made in respect of this transaction in accordance with periodic filing
requirements under the Exchange Act) or any regulatory agency or Trading Market,
without the prior written consent of the Lender, except to the extent such
disclosure is required by law or Trading Market regulations.

     4.9 Shareholder Rights Plan. No claim will be made or enforced by the
Company or, to the Knowledge of the Company, any other Person that the Lender is
an "Acquiring Person" under any shareholder rights plan or similar plan or
arrangement in effect or hereafter adopted by the Company, or that the Lender
could be deemed to trigger the provisions of any such plan or arrangement, by
virtue of receiving Securities under the Transaction Documents or under any
other agreement between the Company and the Lender. The Company shall conduct
its business in a manner so that it will not become subject to the Investment
Company Act.

     4.10 Use of Proceeds. The Company shall use the net proceeds from the sale
of the Securities hereunder for (A) working capital purposes, (B) launching of
the TV shopping network and related operations and other purposes subject to the
approval of the Lender.

     4.11 Reimbursement. If the Lender becomes involved in any capacity in any
Proceeding by or against any Person who is a stockholder of the Company (except
as a result of sales, pledges, margin sales and similar transactions by the
Lender to or with any current stockholder), solely as a result of the Lender's
acquisition of the Securities under this Agreement, the Company will reimburse
the Lender for its reasonable legal and other expenses (including the cost of
any investigation preparation and travel in connection therewith) incurred in
connection therewith, as such expenses are incurred. The reimbursement
obligations of the Company under this paragraph shall be in addition to any
liability which the Company may otherwise have, shall extend upon the same terms
and conditions to any Affiliates of the Lender who are actually named in such
action, proceeding or investigation, and partners, directors, agents, employees
and controlling persons (if any), as the case may be, of the Lender and any such

                                       22
<PAGE>
Affiliate, and shall be binding upon and inure to the benefit of any successors,
assigns, heirs and personal representatives of the Company, the Lender and any
such Affiliate and any such Person. The Company also agrees that neither the
Lender nor any such Affiliates, partners, directors, agents, employees or
controlling persons shall have any liability to the Company or any Person
asserting claims on behalf of or in right of the Company solely as a result of
acquiring the Securities under this Agreement.

     4.12 Indemnification of Lender. Subject to the provisions of this Section
4.12 and in addition to the indemnity provided in the Registration Rights
Agreement, the Company will indemnify and hold the Lender and its directors,
officers, shareholders, members, partners, employees and agents (and any other
Persons with a functionally equivalent role of a Person holding such titles
notwithstanding a lack of such title or any other title), each Person who
controls the Lender (within the meaning of Section 15 of the Securities Act and
Section 20 of the Exchange Act), and the directors, officers, agents, members,
partners or employees (and any other Persons with a functionally equivalent role
of a Person holding such titles notwithstanding a lack of such title or any
other title) of such controlling person (each, a "Lender Party") harmless from
any and all losses, liabilities, obligations, claims, contingencies, damages,
costs and expenses, including all judgments, amounts paid in settlements, court
costs and reasonable attorneys' fees and costs of investigation that any such
Lender Party may suffer or incur as a result of or relating to (a) any breach,
misrepresentation or inaccuracy of any of the representations, warranties,
covenants or agreements made by the Company in this Agreement or in the other
Transaction Documents or (b) any action instituted against the Lender, or any of
its respective Affiliates, by any stockholder of the Company who is not an
Affiliate of the Lender, with respect to any of the transactions contemplated by
the Transaction Documents (unless such action is based upon a material breach of
the Lender's representations, warranties or covenants under the Transaction
Documents or any agreements or understandings that the Lender may have with any
such stockholder or any violations by the Lender of state or federal securities
laws or any conduct by the Lender which constitutes fraud, gross negligence,
willful misconduct or malfeasance). If any action shall be brought against any
Lender Party in respect of which indemnity may be sought pursuant to this
Agreement, such Lender Party shall promptly notify the Company in writing, and
the Company shall have the right to assume the defense thereof with counsel of
its own choosing. Any Lender Party shall have the right to employ separate
counsel in any such action and participate in the defense thereof, but the fees
and expenses of such counsel shall be at the expense of such Lender Party except
to the extent that (i) the employment thereof has been specifically authorized
by the Company in writing, (ii) the Company has failed after a reasonable period
of time to assume such defense and to employ counsel or (iii) in such action
there is, in the reasonable opinion of such separate counsel, a material
conflict on any material issue between the position of the Company and the
position of such Lender Party. The Company will not be liable to any Lender
Party under this Agreement (i) for any settlement by a Lender Party effected
without the Company's prior written consent, which shall not be unreasonably
withheld or delayed; or (ii) to the extent, but only to the extent that a loss,
claim, damage or liability is attributable to any Lender Party's material breach
of any of the representations, warranties, covenants or agreements made by the
Lender in this Agreement or in the other Transaction Documents.

                                       23
<PAGE>
     4.13 Form D. The Company agrees to timely file a Form D with respect to the
Securities as required under Regulation D and to provide a copy thereof,
promptly upon request of the Lender.

     4.14 Subsequent Registrations. Other than pursuant to the Registration
Statement, prior to the Effective Date, the Company may not file any
registration statement (other than on Form S-8) with the Commission with respect
to any securities of the Company.

     4.15 Listing of Common Stock. The Company hereby agrees to use best efforts
to maintain the listing and trading of its Common Stock on the OTC Bulletin
Board (or another nationally recognized Trading Market). The Company further
agrees, if the Company applies to have the Common Stock traded on any other
Trading Market, it will include in such application the Underlying Shares and
Warrant Shares, and will take such other action as is necessary or desirable in
the opinion of the Lender to cause all of the Underlying Shares and Warrant
Shares to be listed on such other Trading Market as promptly as possible. The
Company will use best efforts and take all action reasonably necessary to
continue the listing and trading of its Common Stock on the Trading Market on
which the Common Stock is currently listed or quoted and will comply in all
respects with the Company's reporting, filing and other obligations under the
bylaws or rules of such Trading Market.

     4.16 Form SB-2 and Form S-1 Eligibility. The Company is eligible to
register the resale of the Underlying Shares and the Warrant Shares by the
Lender under Form SB-2 or Form S-1 promulgated under the Securities Act and the
Company hereby covenants and agrees to use its best efforts to maintain its
eligibility to use Form SB-2 until the Registration Statement covering the
resale of the Underlying Shares and Warrant Shares shall have been filed with,
and declared effective by, the Commission. If for any reason the Company is not
eligible to register the resale of the Underlying Shares and the Warrant Shares
by the Lender under Form SB-2, the Company covenants and agrees to register the
resale of the Underlying Shares and Warrant Shares on Form S-1 promulgated under
the Securities Act.

     4.17 Limitation on Issuance of Future Priced Securities. During the twelve
(12) months following the first Closing Date, the Company shall not issue any
security that would be a "Future Priced Securities" as such term is described by
NASD IM-4350-1, that would have a conversion price lower than $0.15 per share or
exercise price lower than $0.25 per share.

     4.18 Lender's Oversight Right. The Lender shall have the right to appoint a
member to the board of directors or otherwise audit the board meetings. The
Lender shall have the power to veto any expense or investment in the amount
exceeding US$100,000. The Company shall make its executives and financial
records available and accessible to the Lender promptly for discussions with the
Company operations and financial conditions.

                                       24
<PAGE>
                                   ARTICLE V.
                                  MISCELLANEOUS

     5.1 Termination. This Agreement may be terminated prior to Closing:

          (a) by written agreement of the Lender and the Company; and

          (b) by the Company or the Lender upon written notice to the other, if
     the Closing shall not have taken place by 6:30 p.m. Eastern time on [___ ],
     2007; provided, that the right to terminate this Agreement under this
     Section shall not be available to any Person whose failure to comply with
     its obligations under this Agreement has been the cause of or resulted in
     the failure of the Closing to occur on or before such time.

     Upon a termination in accordance with this Section 5.1, the Company and the
Lender shall not have any further obligation or liability (including as arising
from such termination) to the other except pursuant to Section 4.12.

     5.2 Entire Agreement. The Transaction Documents, together with the exhibits
and schedules thereto, contain the entire understanding of the parties with
respect to the subject matter hereof and supersede all prior agreements and
understandings, discussions, oral or written, with respect to such matters,
which the parties acknowledge have been merged into such documents, exhibits and
schedules.

     5.3 Notices. Any and all notices or other communications or deliveries
required or permitted to be provided hereunder shall be in writing and shall be
deemed given and effective on the earliest of (a) the date of transmission, if
such notice or communication is delivered via facsimile (provided the sender
receives a machine-generated confirmation of successful transmission) at the
facsimile number set forth on the signature pages attached hereto prior to 5:30
p.m. (New York City time) on a Trading Day, (b) the next Trading Day after the
date of transmission, if such notice or communication is delivered via facsimile
at the facsimile number set forth on the signature pages attached hereto on a
day that is not a Trading Day or later than 5:30 p.m. (New York City time) on
any Trading Day, (c) the 2nd Trading Day following the date of mailing, if sent
by U.S. nationally recognized overnight courier service, or (d) upon actual
receipt by the party to whom such notice is required to be given. The address
for such notices and communications shall be as set forth on the signature pages
attached hereto.

     5.4 Amendments; Waivers. No provision of this Agreement may be waived,
modified, supplemented or amended except in a written instrument signed, in the
case of an amendment, by the Company and the Lender or, in the case of a waiver,
by the party against whom enforcement of any such waiver is sought. No waiver 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 subsequent default or a waiver of any other provision, condition or
requirement hereof, nor shall any delay or omission of either party to exercise
any right hereunder in any manner impair the exercise of any such right.

                                       25
<PAGE>
     5.5 Headings. The headings herein are for convenience only, do not
constitute a part of this Agreement and shall not be deemed to limit or affect
any of the provisions hereof. The language used in this Agreement will be deemed
to be the language chosen by the parties to express their mutual intent, and no
rules of strict construction will be applied against any party. This Agreement
shall be construed as if drafted jointly by the parties, and no presumption or
burden of proof shall arise favoring or disfavoring any party by virtue of the
authorship of any provisions of this Agreement or any of the Transaction
Documents.

     5.6 Successors and Assigns. This Agreement shall be binding upon and inure
to the benefit of the parties and their successors and permitted assigns. The
Company may not assign this Agreement or any rights or obligations hereunder
without the prior written consent of the Lender. The Lender may assign any or
all of its rights under this Agreement to any Person to whom the Lender assigns
or transfers any Securities, provided such transferee agrees in writing to be
bound, with respect to the transferred Securities, by the provisions hereof that
apply to the Lender.

     5.7 No Third-Party Beneficiaries. This Agreement is intended for the
benefit of the parties hereto and their respective successors and permitted
assigns and is not for the benefit of, nor may any provision hereof be enforced
by, any other Person, except as otherwise set forth in Section 4.12 (as to each
Lender Party).

     5.8 Dispute Resolution. The parties agree that any dispute or claim,
whether based on contract, tort, discrimination, retaliation, or otherwise,
relating to, arising from, or connected in any manner with this Agreement, if
not amicably settled by the parties, shall be resolved exclusively through final
and binding arbitration under the auspices of the American Arbitration
Association ("AAA") in accordance with the commercial arbitration rules and
supplementary procedures for international commercial arbitration of the AAA.
The arbitration shall be held in New York City. There shall be three
arbitrators: one arbitrator shall be chosen by each party to the dispute and
those two arbitrators shall choose the third arbitrator. Each party shall
cooperate with the other in making full disclosure of and providing complete
access to all information and documents requested by the other party in
connection with the arbitration proceedings. Arbitration shall be the sole,
binding, exclusive and final remedy for resolving any dispute between the
parties; provided, however, that either party may apply to any court of
competent jurisdiction in the State of New York for enforcement of any award
granted by the arbitrators. The arbitrators shall have jurisdiction to determine
any claim, including the arbitrability of any claim, submitted to them. The
arbitrators may grant any relief authorized by law for any properly established
claim. The interpretation and enforceability of this paragraph of this Agreement
shall be governed and construed in accordance with the United States Federal
Arbitration Act, 9. U.S.C. ss.1, et seq.

     5.9 Survival. The representations, warranties, covenants and other
agreements contained herein shall survive the Closing and the delivery, exercise
and/or conversion of the Securities, as applicable for the applicable statue of
limitations.

                                       26
<PAGE>
     5.10 Execution. This Agreement may be executed in two or more counterparts,
all of which when taken together shall be considered one and the same agreement
and shall become effective when counterparts have been signed by each party and
delivered to the other party, it being understood that both parties need not
sign the same counterpart. In the event that any signature is delivered by
facsimile transmission, such signature shall create a valid and binding
obligation of the party executing (or on whose behalf such signature is
executed) with the same force and effect as if such facsimile signature page
were an original thereof.

     5.11 Severability. If any provision of this Agreement is held to be invalid
or unenforceable in any respect, the validity and enforceability of the
remaining terms and provisions of this Agreement shall not in any way be
affected or impaired thereby and the parties will attempt to agree upon a valid
and enforceable provision that is a reasonable substitute therefor, and upon so
agreeing, shall incorporate such substitute provision in this Agreement.

     5.12 Replacement of Securities. If any certificate or instrument evidencing
any Securities is mutilated, lost, stolen or destroyed, the Company shall issue
or cause to be issued in exchange and substitution for and upon cancellation
thereof, or in lieu of and substitution therefor, a new certificate or
instrument, but only upon receipt of evidence reasonably satisfactory to the
Company of such loss, theft or destruction and customary and reasonable
indemnity, if requested. The applicants for a new certificate or instrument
under such circumstances shall also pay any reasonable third-party costs
associated with the issuance of such replacement Securities.

     5.13 Remedies. In addition to being entitled to exercise all rights
provided herein or granted by law, including recovery of damages, each of the
Lender and the Company will be entitled to specific performance under the
Transaction Documents. The parties agree that monetary damages may not be
adequate compensation for any loss incurred by reason of any breach of
obligations described in the foregoing sentence and hereby agrees to waive in
any action for specific performance of any such obligation the defense that a
remedy at law would be adequate.

     5.14 Payment Set Aside. To the extent that the Company makes a payment or
payments to the Lender pursuant to any Transaction Document or the Lender
enforces or exercises its rights thereunder, and such payment or payments or the
proceeds of such enforcement or exercise or any part thereof are subsequently
invalidated, declared to be fraudulent or preferential, set aside, recovered
from, disgorged by or are required to be refunded, repaid or otherwise restored
to the Company, a trustee, receiver or any other person under any law
(including, without limitation, any bankruptcy law, state or federal law, common
law or equitable cause of action), then to the extent of any such restoration
the obligation or part thereof originally intended to be satisfied shall be
revived and continued in full force and effect as if such payment had not been
made or such enforcement or setoff had not occurred.

     5.15 Out-of-Pocket Expenses. Reasonable out-of-pocket expenses incurred in
connection with the Total Commitment, including legal, audit, stamp duties and
due diligence expenses directly related to the Total Commitment shall be borne
by the Company up to and not exceeding US$20,000.00.

                                       27
<PAGE>
     5.16 Construction. The parties agree that each of them and/or their
respective counsel has reviewed and had an opportunity to revise the Transaction
Documents and, therefore, the normal rule of construction to the effect that any
ambiguities are to be resolved against the drafting party shall not be employed
in the interpretation of the Transaction Documents or any amendments hereto.

     5.17 Limitation of Liability. Notwithstanding anything herein to the
contrary, the Company acknowledges and agrees that the liability of the Lender
arising directly or indirectly, under any Transaction Document of any and every
nature whatsoever shall be satisfied solely out of the assets of the Lender, and
that no trustee, officer, other investment vehicle or any other Affiliate of the
Lender or any investor, shareholder or holder of shares of beneficial interest
of the Lender shall be personally liable for any liabilities of the Lender.

                            (Signature Pages Follow)

                                       28

<PAGE>

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

NAVSTAR MEDIA HOLDINGS, INC.                 Address for Notice:
                                             -------------------

                                             China
                                             Fax:

By:____________________________
     Name:
     Title:

TS Telver Sky Partners, L.P.

By:  Telver Limited
     --------------
     Name:
     Title:

                   [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK
                      SIGNATURE PAGE FOR PURCHASER FOLLOWS]

                                       29

<PAGE>

                                                                         Annex A

                                CLOSING STATEMENT

Pursuant to the attached Securities Purchase Agreement, dated as of the date
hereto, the Lender shall purchase the Note and Warrants from Navstar Media
Holdings, Inc. (the "Company"). All funds will be wired into a trust account
maintained by ____________, counsel to the Company. All funds will be disbursed
in accordance with this Closing Statement.

Disbursement Date:    __________ ___, 2007

I.   PURCHASE PRICE

                    Gross Proceeds to be Received in Trust $

II.  DISBURSEMENTS

                                                           $
                                                           $
                                                           $
                                                           $
                                                           $

Total Amount Disbursed:                                    $

WIRE INSTRUCTIONS:

To: _____________________________________

To: _____________________________________

                                       30
<PAGE>

                                                                         ANNEX A

                                   COLLATERAL

     As used in this Agreement, the term Collateral means all of the Company's
assets , including its direct and indirect ownership interest in its direct and
indirect subsidiaries, now existing or hereinafter acquired, including but not
limited to cash, accounts receivable, inventory, equipment, furniture, fixtures,
general intangibles, patents, contract rights and all proceeds therefrom.

                                       31
<PAGE>

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