Document:

chinatel_8k-ex1001.htm

    EXHIBIT
10.1

     

    
      Execution
Copy

    

    
      

       

       

       

       

      
         

        
          	
                  

                     

                    Amended
      and Restated

                    
                      

                       

                      STOCK
      PURCHASE AGREEMENT

                    

                    
                      

                       

                    

                  

                

        

        
 

      

    

     

    

     

    ASIA
SPECIAL SITUATION ACQUISITION CORP.

     

    

     

    as
the Purchaser of

     

    Capital
Stock

     

    of

     

    CHINA
TEL GROUP, INC.

     

    

    Dated:  as
of July 31, 2008

    
      
         

      

      
         

        
          

        

      

      
         

        
          Execution
Copy

        

      

    

    AMENDED
AND RESTATED STOCK PURCHASE AGREEMENT

     

    THIS AMENDED AND RESTATED STOCK
PURCHASE AGREEMENT (the “Agreement”), is
entered into this 4th day of
August, 2008, to be effective as of July 31, 2008 (the “Effective Date”), by
and among Asia Special
Situation Acquisition Corp., a Cayman Islands corporation (the “Purchaser”); China Tel Group, Inc., a
Nevada corporation, formerly known as Mortlock Ventures, Inc. (the “Company”); Trussnet USA, Inc., a Nevada
corporation (“Trussnet”); and George Alvarez and the other
Persons listed on the signature page as “Company Principal
Stockholders.”  The Purchaser, the Company, Trussnet and the
Company Principal Stockholders are sometimes referred to collectively herein as
the “Parties”,
and each individually as a “Party”.

     

    RECITALS

     

    This
Agreement is being entered into by the Purchaser based, in part, upon the truth
and accuracy of the following factual Recitals, each of which shall be deemed to
be additional representations and warranties by the Company and
Trussnet:

     

    A.           The
Company, through Trussnet, a wholly owned subsidiary of the Company, is in the
business of designing, developing, operating and maintaining wireless
communications facilities throughout the world.

     

    B.           CECT-Chinacomm Communications Co.,
Ltd., a company incorporated under the laws of the People’s Republic of
China (“Chinacomm”), is and
on the Closing Date (as hereinafter defined) shall be the holder of a basic
spectrum license (the “WiMAX License”)
issued by the Ministry of Information Industry of China (“MII”) authorizing the
ChinaComm to provide and deploy fixed 3.5 GHz of wireless world-wide
interoperability for microwave access (“WiMAX”) wireless
broadband operations in 29 cities in the People’s Republic of China (the “Wireless
Installations”).

     

    C.           Trussnet
is an entity formed on April 4, 2008 to acquire certain of the assets and
personnel, hereinafter described, of Trussnet USA, Inc., a Delaware
corporation, an
Affiliate entity engaged in the design, engineering, manufacture and
installation of space-frames, trusses structures and the management of
telecommunications facilities in Asia (“Trussnet
Delaware”).

     

     D.          Trussnet
owns a 100% equity interest in Trussnet Gulfstream (Dahlian) Co.,
Ltd. (“Trussnet
Gulfstream”), a foreign investment enterprise established under the laws
of the Peoples Republic of China (the “PRC”).  Trussnet
Gulfstream has entered into that certain Exclusive Technical Services Agreement
dated May 23, 2008 (the “Technical Agreement”)
with Yunji Communications
Technology (China) Co. Ltd. a wholly foreign-owned investment enterprise
(“Yunji”).  Pursuant
to the terms of the Technical Agreement, Trussnet Gulfstream will provide
technical and professional assistance to Yunji to assist Yunji in performing the
services described in the Management Agreement referred to in Paragraph E
below.  Attached as Exhibit A is a fully executed
copy of the Technical Agreement.

    
      
         

      

      
        -1-

        
          

        

      

      
         

        
          Execution
Copy

        

      

    

    E.           Pursuant
to the terms of that certain Exclusive Technical and Management Consulting
Services Agreement dated May 23, 2008 (the “Management
Agreement”), Yunji will provide technical and management services on an
exclusive basis to Chinacomm for the procurement, installation, operation and
maintenance of the Wireless Installation.  Yunji has a contractual
interest in the revenues of Chinacomm.  Attached as Exhibit B is a fully executed
copy of the Management Agreement.

     

    F.           Pursuant
to that certain lease agreement, dated May 23, 2008 between Trussnet Gulfstream,
as lessor, and Yunji, as lessee (the “Equipment Lease
Agreement”), Trussnet Gulfstream will lease to Yunji certain equipment
required for the Wireless Installations (the “Equipment”).   Pursuant
to that certain sublease agreement dated May 23, 2008, between Yunji, as
sublessor, and Chinacomm, as sublessee (the Equipment Sublease
Agreement”), Yunji will sublease the Equipment to Chinacomm certain
equipment required for the Wireless Installations.  Attached as Exhibit C-1 is a fully
executed copy of the Equipment Lease Agreement and attached hereto as Exhibit C-2 is a fully
executed copy of the Equipment Sublease Agreement.

     

    G.           Pursuant
to the terms of the Management Agreement and the Equipment Sublease Agreement
referred to above, Yunji will be entitled to receive 100% of the revenues
realized by Chinacomm from the operation of the Wireless
Installations.

     

    H.           Pursuant
to the terms of that certain Subscription and Shareholders’ Agreement, dated
May 23, 2008 (the “Subscription
Agreement”), among: (i) Gulfstream Capital Partners
Ltd., a Seychelles corporation, and a 100% owned subsidiary of Trussnet
(“Gulfstream
Capital”), (ii) Chinacomm Limited, a Cayman
Islands corporation (“Chinacomm Cayman”),
(iii) Chinacomm, (iv) Qui Ping (“Qui”) and Yuan Yi (“Yuan”),
(v) Newtop Holdings
Limited (“Newtop”),
(vi) Thrive Century
International Limited, a British Virgin Islands corporation (“Thrive”), and
(vii) CECT Chinacomm
Shanghai Co. Ltd., a PRC corporation (“Chinacomm Shanghai”),
Trussnet, through its wholly owned subsidiary Gulfstream Capital, is
to  provide $196,000,000 in financial assistance as a capital
investment and to finance the leasing of certain equipment for the benefit of
Chinacomm, in exchange for 2,450,000,000 ordinary shares of Chinacomm Cayman,
constituting the legal and beneficial ownership of 49% of the equity of
Chinacomm Cayman on a Fully-Diluted Basis.  Attached as Exhibit D is a fully executed
copy of the Subscription Agreement.

     

    I.           The
Technical Agreement, the Management Agreement, the Equipment Lease Agreement,
the Equipment Sublease Agreement and the Subscription Agreement are hereinafter
collectively referred to as the “Chinacomm
Agreements”.

     

    J.           To
facilitate, among other things, the performance of Trussnet under the Chinacomm
Agreements, the Purchaser desires, in accordance with the terms of this
Agreement, to acquire for  a maximum of $270,000,000: (a) certain
shares of the Class A common stock of the Company (the “Class A Common
Shares”), (b) certain shares of the Class B common stock of the
Company, a description of which is set forth as Exhibit E hereto (the “Class B Common
Shares”), and (c) certain shares of the Series A preferred stock of
the Company, a description of which is set forth in Exhibit F hereto (the “Series A Preferred
Shares”).  The acquisition of the Class A Common Shares, the
Class B Common Shares and the Series A Preferred Shares is sometimes
collectively referred to herein as the “Stock Purchase,” and
the Class A Common Shares and the Series A Preferred Shares that may be
purchased by the Purchaser on the Closing Date are hereinafter sometimes
collectively referred to as the “Purchased
Securities.”.

    
      
         

      

      
        -2-

        
          

        

      

      
         

        
          Execution
Copy

        

      

    

    K.           On
July 8, 2008, the Purchaser, the Company and Trussnet entered into a stock
purchase agreement (the “Prior
Agreement”).

     

    L.           The
Purchaser, the Company, Trussnet and the Company Principal Stockholders desire
to amend and restate in its entirety the Prior Agreement and enter into this
Agreement in order, inter
alia, to provide from the “Merger” (as hereinafter defined) between the
Company and the Purchaser, all upon the terms and conditions hereinafter set
forth.  Upon execution of this Agreement, the Parties agree that the
Prior Agreement shall no longer be of any force or effect.

     

    M.           The
Board of Directors of the Company, Trussnet and the Purchaser and the
Company Principal Stockholders have each deemed it advisable, and in the best
interests of the Company and the Purchaser respectively, to consummate the Stock
Purchase and the Merger, in accordance with the terms of this Agreement, in
order to advance the long-term strategic business interests of the Company and
the Purchaser.

     

    NOW, THEREFORE, in
consideration of the promises and the mutual covenants contained herein, and for
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the Parties, intending to be legally bound, hereby agree as
follows:

     

     

    ARTICLE
I

    SELECTED DEFINED TERMS AND
INTERPRETATION

     

    1.1.           Definitions.  In
addition to the terms defined in the Recitals and other terms defined herein,
the following capitalized terms shall have the respective meanings specified in
this Article I.  Other terms defined elsewhere herein shall have
meanings so given them.

     

    1.1.1.                        Additional
Investment  The term “Additional Investment” shall mean the
cash purchase by one or more Additional Investors on the Closing Date of
securities of either the Company or the Purchaser, in the aggregate amount of
not less than One Hundred and Five Million Dollars ($105,000,000) and all upon
such terms and conditions as shall be satisfactory to both the Company and the
Purchaser, in the exercise of their sole discretion.

     

    1.1.2.                        Additional
Investors  The term Additional Investor” shall mean one or more
strategic or institutional Persons who shall, on or before the Closing Date,
make the Additional Investment.

     

    1.1.3.                        Affiliate.  The
term “Affiliate” shall mean a Person that directly or indirectly, through one or
more intermediaries, controls, is controlled by, or is under common control
with, the first Person.

     

    1.1.4.                        Business
Day.  The term “Business Day(s)” shall mean the individual or
collective reference to any one or more calendar days, excluding Saturday or
Sunday or another day in which any of the national banks located in the United
States or the PRC are closed for business.

     

    
      
         

      

      
        -3-

        
          

        

      

      
         

        
          Execution
Copy

        

      

    

    1.1.5.                        Class A
Common Shares.  The term “Class A Common Shares” shall
mean  the 500,000,000 shares of Class A common stock authorized for
issuance by the Company pursuant  to its certificate of
incorporation.

     

    1.1.6.                        Class A
Common Shares and Equivalents.  The term “Class A Common Shares
and Equivalents” shall mean the sum of (a) the aggregate number of Class A
Common Shares and (b) the aggregate number of Class A Common Shares issuable
upon conversion of the Series A Preferred Shares, if any, that may be purchased
by the Purchaser under this Agreement.

     

    1.1.7.                        Class B
Common Shares.  The term “Class B Common Shares” shall
mean  the 200,000,000 shares of Class B common stock authorized for
issuance by the Company pursuant to its certificate of
incorporation.

     

    1.1.8.                        Common
Stock.  The term “Common Stock” shall refer to either or both
of the Class A Common Shares and Class B Common Shares that have been
authorized for issuance by the Company pursuant to its certificate of
incorporation.

     

    1.1.9.                        Control.  The
term “Control” (including the terms “controlled by” and “under common control
with”) shall mean the possession, directly or indirectly, of the power to direct
or cause the direction of the management policies of a Person, whether through
the ownership of voting securities, by contract or otherwise.

     

    1.1.10.                      Chinacomm
Parties.  The term “Chinacomm Parties” shall mean the
collective reference to Chinacomm, Trussnet Gulfstream, Yunji, Gulfstream
Capital, Chinacomm Cayman, Qui, Yuan, Newtop, Thrive, and Chinacomm
Shanghai.

     

    1.1.11.                      Due
Diligence Investigation.  The term “Due Diligence
Investigation” shall mean consummation by the Purchaser of an investigation of
the business, assets and liabilities, financial condition, legal and regulatory
matters (including decisions and approvals of PRC Regulatory Authorities) and
prospects of each of the Company, Trussnet and the Chinacomm Parties, including,
without limitation, a review of all Financial Statements (when furnished), and
confirmation of the statements, warranties and satisfaction of all conditions
precedent contained in this Agreement and in each of the Chinacomm Agreements;
all of which investigation shall be satisfactory to the Purchaser, in the
exercise of its sole discretion.

     

    1.1.12.                       Employment
Agreement.  The term “Employment Agreement” shall mean the five
year employment agreement between the Company and George Alvarez the execution
of which shall be a condition precedent to the closing of the Stock
Purchase.

     

    1.1.13.                       Financial
Statements.  The term “Financial Statements” shall mean the
collective reference to: (a) the audited balance sheets and statement of
income or operations and statement of cash flows of the Company as of June 30,
2006 and June 30, 2007 and for each of the two fiscal years ended June 30, 2007,
(b) the unaudited comparative balance sheets and statements of income or
operations and cash flows of the Company as at March 31, 2008 and for the nine
months ended March 31, 2008;  (c) the unaudited balance sheet as
at June 30, 2008 and the unaudited consolidated statements of income or
operations and statement of cash flows of Trussnet and its consolidated
Subsidiaries from inception through the period ended June 30, 2008; and
(d) if, and only to the extent required under GAAP and Regulations S-X
promulgated under the Securities Act of 1933, as amended, (i) the audited
balance sheets and statements of income or operations and cash flows of
Chinacomm as at December 31, 2006, and December 31, 2007, and (ii) the unaudited
comparative balance sheets and statements of income or operations and cash flows
of Chinacomm as at June 30, 2007 and June 30, 2008 and for the six months ended
June 30, 2007 and June 30, 2008.

    
      
         

      

      
        -4-

        
          

        

      

      
         

        
          Execution
Copy

        

      

    

    1.1.14.                        Fully
Diluted Basis.  The term “Fully Diluted Basis” shall mean, with
respect to the Person in question, the sum of: (a) the aggregate number of
issued and outstanding shares of capital stock or other equity interests of such
Person at any point in time, plus (b) such additional shares of capital stock or
other equity interests that would be issued and outstanding on a fully-diluted
basis, assuming: (i) the conversion into capital stock (including without
limitation, Class A Common Shares, Class B Common Shares and Series A Preferred
Shares) of all securities issued by such Person, or (ii) the exercise of all
options, warrants or other rights entitling any holder to purchase shares of
capital stock or other equity interests of such Person.

     

    1.1.15.                        GAAP.  The
term “GAAP” means, at any time or for any period in question, United States
generally acceptable accounting principles then in effect.

     

    1.1.16.                        Knowledge.  The
term “Knowledge” shall mean actual knowledge after reasonable
investigation.

     

    1.1.17.                        Management
Stockholders.  The term “Management Stockholders” shall mean
the collective reference to George Alvarez and the other Persons listed on
Schedule 3.8(a) to this Agreement.

     

    1.1.18.                        Material
Adverse Change.  The term “Material Adverse Change” shall mean
a change which results in a Material Adverse Effect.

     

    1.1.19.                        Material
Adverse Effect. The term “Material Adverse Effect” shall mean: with
respect to the Person in question: (i) a material adverse effect (whether
taken individually or in the aggregate with all other such effects) on the
financial condition, business, results of operations or properties of such
Person; or (ii) an effect which would materially impair the Person’s
ability to timely consummate the transactions contemplated under this Agreement;
or (iii) any event, circumstance or condition affecting a Person which
would prevent or materially delay the consummation of the transactions
contemplated under this Agreement.

     

    1.1.20.                        Merger.   The
term “Merger” shall mean the merger, to be effected following the Closing of the
Purchaser’s acquisition of the Purchased Securities pursuant to this Agreement,
all upon the terms and conditions set forth in the Merger
Agreement.

     

    1.1.21.                        Merger
Agreement.  The term “Merger Agreement” shall mean the
agreement and plan of merger in substantially the form of Exhibit
G annexed hereto and made a part hereof, pursuant to which a wholly-owned
acquisition subsidiary of the Purchaser will be merged into the Company, with
the Company as the surviving corporation of such merger, as a result of which
the Company will become a wholly-owned subsidiary of the Purchaser.

     

    1.1.22.                        Merger
Date.   The term “Merger Date” shall mean the date
that  the certificate of merger and articles of merger with respect to
the Merger shall have been filed with the appropriate filing authorities in the
State of Nevada.

     

    1.1.23.                        MII.   The
term “MII” shall mean the Ministry of Information and Industry of the People’s
Republic of China.

     

    
      
         

      

      
        -5-

        
          

        

      

      
         

        
          Execution
Copy

        

      

    

    1.1.24.                        Preferred
Stock.  The term “Preferred Stock” shall refer to the Series A
Preferred Shares and any other shares of preferred stock of the Company
authorized for issuance pursuant to its certificate of
incorporation.

     

    1.1.25.                        Ordinary
Course of Business.  The term “Ordinary Course of Business”
shall mean the course of business procedures and practices consistent with past
custom and practice (including with respect to quantity and
frequency).

     

    1.1.26.                        PRC
Regulatory Authorities.  The term “PRC Regulatory
Authorities” shall mean the collective reference to: (a) the MII,
(b) the State Agency of Foreign Exchange (“SAFE”), (b) the China Securities
Regulatory Commission (“CSRC”), and (c) any other agency or instrumentality
of the central PRC government and/or any Provincial governmental agency having
jurisdiction over Chinacomm and the Chinacomm Parties.

     

    1.1.27.                        Person.  The
term “Person” means an individual, partnership, limited liability company,
corporation, association, joint stock company, trust, a joint venture,
unincorporated organization, or any other type of entity.

     

    1.1.28.                        Purchased
Securities.  The term “Purchased Securities” shall mean the
aggregate number of the Class A Common Shares and/or Series A Preferred
Shares that shall be purchased by the Purchaser in accordance with the terms of
this Agreement.

     

    1.1.29.                        Purchaser
Note.    The term “Purchaser Note” shall have the
meaning as is defined in Section 2.1.2(b) of
this Agreement.

     

    1.1.30.                        Requirement
of Law.  The term “Requirement of Law” shall mean, with respect
to any Person, any judgment, statute, law, code, act, order, writ, rule,
ordinance, regulation, governmental consent or governmental requirement, or
determination or decree of any arbitrator, court, or other governmental agency
or administrative body, which now or at any time hereafter may be applicable to
and enforceable against the relevant Person, work, or activity in question or
any part thereof.

     

    1.1.31.                        Sale of
Control.   The term “Sale of Control” means, with respect
to any Party to this Agreement or any Trussnet Subsidiary, the sale or transfer
to any unaffiliated Person of securities of such Party or Trussnet Subsidiary or
of all or substantially all of the assets of such Party or Trussnet Subsidiary,
whether by merger, consolidation, combination, asset sale, stock sale, tender
offer or otherwise, in a transaction whereby the power to elect a majority of
the board of directors of such Party or Trussnet Subsidiary shall be vested in
such unaffiliated Person.

     

    1.1.32.                        SEC.  The
term “SEC” shall mean the United States Securities and Exchange
Commission.

     

    1.1.33.                        Securities
Act.  The term “Securities Act” shall mean the Securities Act
of 1933, as amended.

    
      
         

      

      
        -6-

        
          

        

      

      
         

        
          Execution
Copy

        

      

    

    1.1.34.                        Series A
Preferred Shares.  The term “Series A Preferred Shares” shall
mean the 25,000,000 shares of Series A Preferred Shares of the Company
authorized for issuance pursuant  to its certificate of
incorporation.

     

    1.1.35.                        Tax or
Taxes.  The term “Tax” or “Taxes” shall mean any federal,
state, local or foreign income, gross receipts, license, payroll, employment,
excise, severance, stamp, occupation, premium, windfall profits, environmental,
customs duties, capital stock, franchise, profits, withholding, social security
(or similar), unemployment, disability, real property, personal property, sales,
use, transfer, registration, value added, alternative or add-on minimum,
estimated, or other tax of any kind whatsoever, including any interest, penalty,
or addition thereto, whether disputed or not.

     

    1.1.36.                        Tax
Return.  The term “Tax Return” shall mean any return,
declaration, report, claim for refund, or information return or statement
relating to Taxes, including any schedule or attachment thereto, and including
any amendment thereof.

     

    1.1.37.                        Transaction
Expenses.  The term “Transaction Expenses” shall mean and
include all reasonable, actual, and documented out-of-pocket expenses
(including, without  limitation, all reasonable fees and expenses of
counsel, accountants, and investment bankers to a Party and its Affiliates)
incurred by a Party or on its behalf in connection with or related to:
(i) the authorization, preparation, negotiation, execution, and performance
of this Agreement; (ii) the preparation, printing, filing, and mailing of
any SEC Filings made or contemplated by that Party in connection with this
Agreement and the transactions envisioned hereunder, including, without
limitation, Purchaser’s proxy statement, the Company’s information statement
relating to the Merger and Purchaser’s registration statement on Form S-4 or
Form F-4 to be filed to register the ordinary shares of Purchaser or be issued
in the Merger; and (iii) all other matters related to the consummation of
the transactions contemplated under this Agreement.

     

    1.1.38.                        WiMAX
License Renewal.  The term “WiMAX License Renewal” shall have
the meaning set forth in Section 5.1.6 of this
Agreement.

     

    1.1.39.                        WiMAX
License Renewal Date.   The term “WiMAX License Renewal
Date” shall be the date on which the MII shall have issued (by its official seal
or “chop”) the WiMAX License Renewal.

     

    1.1.40.                        Accounting
Terms and Determinations.  All accounting terms used in this
Agreement and not otherwise defined shall have the meaning accorded to them in
accordance with GAAP and, except as expressly provided herein, all accounting
determinations shall be made in accordance with GAAP, consistently
applied.  When used herein, the term “financial statements” shall
include the notes and schedules attached thereto.  The term “GAAP”
means generally accepted accounting principles consistently applied as in effect
from time to time.

    
      
         

      

      
        -7-

        
          

        

      

      
         

        
          Execution
Copy

        

      

    

    1.2.           Interpretation.

     

    1.2.1.                      Provision
Not Construed Against Party Drafting Agreement.  This Agreement
is the result of negotiations by and between the Parties, and each Party has had
the opportunity to be represented by independent legal counsel of its
choice.  This Agreement is the product of the work and efforts of all
Parties, and shall be deemed to have been drafted by all Parties.  In
the event of a dispute, no Party hereto shall be entitled to claim that any
provision should be construed against any other Party by reason of the fact that
it was drafted by one particular Party.

     

    1.2.2.                      Number
and Gender.  Wherever from the context it appears appropriate:
(i) each term stated either in the singular or plural shall include the
singular and plural; and (ii) wherever from the context it appears
appropriate, the masculine, feminine, or neuter gender, shall each include the
others.

     

    1.2.3.                      Incorporation
of Exhibits and Schedules.  The Exhibits and Schedules
identified in this Agreement are incorporated herein by reference and made a
part hereof as if set out in full herein.

     

    1.2.4.                      Article
and Section Headings.  The article and section headings used in
this Agreement are inserted for convenience and identification only and are not
to be used in any manner to interpret this Agreement.

     

    1.3.           Severability.  Each
and every provision of this Agreement is severable and independent of any other
term or provision of this Agreement.  If any term or provision hereof
is held void or invalid for any reason by a court of competent jurisdiction,
such invalidity shall not affect the remainder of this Agreement.

     

    1.4.           Entire
Agreement.  This Agreement, and all Exhibits hereto and all
references, documents, or instruments referred to herein, contains the entire
agreement and understanding of the Parties hereto in respect to the subject
matter contained herein.  The Parties have expressly not relied upon
any promises, representations, warranties, agreements, covenants, or
undertakings, other than those expressly set forth or referred to in this
Agreement and in the Exhibits hereto.  This Agreement and the Exhibits
hereto supersedes any and all prior written or oral agreements, understandings,
and negotiations between the Parties with respect to the subject matter
contained herein or therein.

     

    1.5.           Additional
Definitions and Interpretation Provisions.  For purposes of
this Agreement: (i) those words, names, or terms which are specifically
defined herein shall have the meaning specifically ascribed to them;
(ii) the words “hereof”, “herein”, “hereunder”, and words of similar
import, when used in this Agreement, shall refer to this Agreement as a whole,
and not to any particular provision of this Agreement; (iii) all references
to designated “Articles”, “Sections”, and to other subdivisions are to the
designated Articles, Sections, and other subdivisions of this Agreement as
originally executed; (iv) all references to “Dollars” or “$” shall be
construed as being United States dollars; (v) the term “including” is not
limiting and means “including without limitation”; and (vi) all references
to all statutes, statutory provisions, regulations, or similar administrative
provisions shall be construed as a reference to such statute, statutory
provision, regulation, or similar administrative provision as in force at the
Effective Date and as may be subsequently amended.

    
      
         

      

      
        -8-

        
          

        

      

      
         

        
          Execution
Copy

        

      

    

     

    ARTICLE
II

    THE PURCHASED
SECURITIES

     

    2.1.           The
Purchased Securities, Purchase Price and Post-Closing
Option.

     

    2.1.1                      The
Purchased Securities

     

    (a)           On
the Closing Date (as hereinafter defined) and subject  to the terms
and conditions set forth herein, the Purchaser shall purchase and acquire and
the Company shall sell to the Purchaser the Purchased Securities, including,
without limitation, an aggregate of 120,000,000 Class A Common Shares and
Equivalents.  Such Purchased Securities shall be evidenced by the
Company’s delivery to the Purchaser on the Closing Date of:

     

    (i)           that
number of Class A Common Shares determined by dividing (i) the Cash Payment (as
defined in Section
2.1.2(a) below) paid at Closing, by (ii) $2.25; and

     

    (ii)           that
number of Series A Preferred Shares of the Company determined by dividing (i)
the principal amount of the Purchaser Note (as defined in Section 2.1.2(b)
below) delivered at Closing, by (ii) $10.00.

     

    For the
avoidance of doubt, if the Cash Payment at Closing is $105,000,000 and the
Purchaser Note is $165,000,000, then at Closing the Purchaser shall receive from
the Company an aggregate of 46,666,667 Class A Common Shares and an aggregate of
16,500,000 Series A Preferred Shares, convertible into an additional 73,333,333
Class A Common Shares.

     

    (b)           Notwithstanding
the provisions of Section 2.1.1(a)
above, prior to the Closing Date, the Purchaser may elect, by written notice to
the Company, to receive all of the Purchased Securities in the form of
120,000,000 Class A Common Shares; in which event no Series A Preferred Shares
shall be issued under this Agreement by the Company.

     

    (c)           To
the extent that the Company does issue Series A Preferred Shares, dividends on
such Purchased Securities shall only be payable, as to those Series A Preferred
Shares which shall have been paid for in cash (at the rate of $10.00 per Series
A Preferred Share) by prepayment or payment of the Purchaser Note.

     

    2.1.2                       Purchase
Price.  On the Closing Date, the Purchaser shall pay to
the Company a purchase price for the Class A Common Shares and Equivalents equal
to $2.25 per share, or $270,000,000 for all of the Purchased Securities (the
“Purchase
Price”).   The Purchase Price shall be paid on the Closing
Date, in the following manner:

     

    (a)           by
wire transfer of immediately available funds (the “Cash
Payment”)  to an account designated by the Company and approved
by Purchaser such amount, net of all applicable commissions, that shall be not
less than $105,000,000 (the “Minimum
Cash Payment”) and not more than $270,000,000 (the “Maximum
Cash Payment”); and

    
      
         

      

      
        -9-

        
          

        

      

      
         

        
          Execution
Copy

        

      

    

    (b)           to
the extent not paid in cash at Closing in accordance with Section 2.1.2(a),
above, the balance of the Purchase Price shall be paid by the Purchaser’s
delivery to the Company at Closing of the Purchaser’s non-interest bearing
promissory note due March 31, 2009 (the “Purchaser
Note”); which Purchaser Note:

     

    (i)           to
the extent not previously prepaid, shall be due and payable on March 31, 2009
(the “Maturity
Date”);

     

    (ii)           shall
be secured by a pledge to the Company of that number of shares of the Purchased
Securities which, when divided by the $2.25 per share Purchase Price for Class A
Common Shares and/or the $10.00 per share stated value purchase price for Series
A Preferred Shares, if any, shall equal the principal amount of the Purchaser
Note (the “Pledged
Securities”), and held by Horwitz, Cron & Jasper, P.L.C., counsel to
the Company, as collateral agent (the “Collateral
Agent”) pursuant to the terms of the pledge agreement annexed hereto as
Exhibit
H and made a part hereof (the “Pledge
Agreement”);

     

    (iii)           except
only for the Pledged Securities, shall be non-recourse to the Purchaser and the
assets and properties of the Purchaser;

     

    (iv)           shall
be subject to full or partial mandatory prepayment in cash, to the extent of any
and all cash net proceeds received by the Purchaser from the issuance and sale
of any of its securities at any time or from time to time prior to the Maturity
Date;

     

    (v)           shall
provide that on any one or more occasion that the outstanding principal amount
of the Purchaser Note is prepaid in part and reduced or paid in full, a
corresponding amount of the Purchased Securities (valued (A) as to the Class A
Common Shares held under the Pledge Agreement at $2.25 per share, and (B) as to
any shares of Series A Preferred Shares held under the Pledge Agreement, at the
$10.00 per share purchase price) shall be released by the Collateral Agent from
the Pledge Agreement and delivered  to the Purchaser;

     

    (vi)           shall
provide that, to the extent the Purchaser Note has not been paid in full by the
Maturity Date, the amount of the Purchased Securities then being held under the
Pledge Agreement which are not then subject to release and delivery to the
Purchaser pursuant to clause (v) above, shall be returned to the Company for
cancellation and the Purchaser Note shall be returned to the Purchaser for
cancellation, unless the Maturity Date shall have been extended by mutual
agreement of the Parties;

     

    (vii)           shall
provide that on the Closing Date, the Purchaser shall deliver to the Collateral
Agent the Pledged Securities, together with not less than twenty stock powers
duly executed by the Purchaser in blank; and

     

    (viii)           shall
be in the form of Exhibit
I annexed
hereto and made a part hereof.

    
      
         

      

      
        -10-

        
          

        

      

      
         

        
          Execution
Copy

        

      

    

    2.1.3                        Deliveries.  Against
receipt of the Purchase Price, on the Closing Date the Company shall
deliver:

     

    (a)           to
the Purchaser, stock certificates evidencing legal and beneficial ownership of
such number of the Purchased Securities equal to the Purchase Price that shall
have been paid at the Closing by the Cash Payment (calculated by dividing the
Cash Payment paid at Closing by $2.25); and

     

    (b)           to
the Collateral Agent under the Pledge Agreement, the Purchaser Note and stock
certificates evidencing legal and beneficial ownership of such number of the
Pledged Securities equal to the Purchase Price that shall have been paid as at
the Closing by delivery of the Purchaser Note (calculated by in accordance with
Section
2.1.2(b)(ii) above).

     

    2.1.4                      Per Share
Price; Adjustments.  It is the mutual intention of the Parties
hereto that the per share purchase price of each of the Class A Common Shares
shall be $2.25 per share (the “Per Share
Price”).  Such number of Class A Common Shares and the Per
Share Price shall be subject to equitable adjustment in the event of any stock
splits or recapitalizations by the Company prior to the Closing Date that have
been approved by the Purchaser.  In addition, except for the
Convertible Debentures permitted to be issued by the Company prior to the
Closing Date in accordance with Section 3.8 and Section 4.14 below,
in the event that the Company shall, on any one or more occasion, commencing
from and after the date of this Agreement and ending on a date which shall be
the effective time of the Merger, issue or sell for cash any of its Class A
Common Shares or other securities convertible into or exercisable for Class A
Common Shares at a price per share that shall be less than $2.25, the Per Share
Price paid and payable by Purchaser shall be reduced to such lower price, and
the number of Class A Common Shares issued and issuable to the Purchaser shall
be correspondingly increased.   Notwithstanding the foregoing,
the provisions of this Section 2.1.4 shall not be applicable to, or subject to
adjustment by, either the transactions contemplated by the Merger Agreement or
the exercise of warrants outstanding as at the date of this Agreement entitling
the holders to purchase ordinary shares of the Purchaser

     

    2.1.5                      Closing
Payment and Class A Common Shares and Equivalents.  On the
Closing Date, the Purchaser shall pay the $270,000,000 Purchase Price in the
manner set forth in Section 2.1.2 above
and the Company shall deliver to the Purchaser an aggregate of 120,000,000 Class
A Common Shares and Equivalents, after giving effect to the conversion of each
Series A Preferred Share purchased on the Closing Date into 4.4444 Class A
Common  Shares, calculated by dividing (a) the $10.00 per share stated
value and purchase price for each Series A Preferred Share, by (b) $2.25 per
share (the “Series A
Preferred Conversion Ratio”).

     

    2.1.6                      Minimum
Percentage Ownership.  The Parties hereto do hereby acknowledge
and agree that, notwithstanding anything to the contrary, express or implied,
contained in this Agreement, after giving effect to the transactions
contemplated by this Agreement, on the Closing Date the Purchaser shall purchase
and own of record and beneficially that number of Class A Common Shares and
Equivalents and that number of Class B Common Shares as shall represent not less
than fifty-one (51%) of the aggregate voting power of all voting securities of
the Company, after giving effect to the acquisition of the Purchased Securities
by the Purchaser.

    
      
         

      

      
        -11-

        
          

        

      

      
         

        
          Execution
Copy

        

      

    

    2.2.           Composition
of the Purchased Securities.   Unless the Purchaser shall
elect, by written notice to the Company given not later than five (5) days prior
to the Closing Date, to purchase all of the Purchased Securities in the form of
120,000,000 Class A Common Shares, the allocation of the Purchased Securities
among the Class A Common Shares and the Series A Preferred Shares shall be as
follows:

     

    (a)           a
Minimum Cash Payment of the Purchase Price of $105,000,000, in exchange for an
aggregate of  46,666,667 shares of Class A Common Shares at the Per
Share Price of $2.25 per share;

     

    (b)           the
balance of the Purchased Securities to be represented by the purchase of up to
16,500,000 Series A Preferred Shares at a stated value and purchase price of
$10.00 per Series A Preferred Share; with (i) such Series A Preferred Shares
paid by issuance of the Purchaser Note, and (ii) each Series A Preferred Share
convertible by the holder at any time by the holder into 4.4444 Class A Common
Shares, based on the Series A Preferred Conversion Ratio, and shall contain such
other terms and conditions as are set forth on Exhibit
F annexed
hereto and made a part hereof; and

     

    (c)           the
issuance of the number of the Class B Common Shares referred to in Section 2.3
below.

     

    2.3.           Issuance
of Class B Common Shares.   In consideration for its
purchase of the Purchased Securities, on the Closing Date, the Company shall
issue to the Purchaser, for $0.001 per share, that number of the Class B Common
Shares which, when coupled with the number of Class A Shares and any Series A
Preferred Shares purchased by the Purchaser on the Closing Date, shall represent
as of the Closing Date, not less than fifty-one percent (51%) of the aggregate
voting power of the Company, represented by all Class A Shares, Series A
Preferred Shares and Class B Common Shares of the Company, that are or would be
outstanding on a Fully-Diluted Basis after giving effect to such issuance (the
“Purchaser’s Class B
Shares”).

     

    2.4           Failure
to Consummate Purchase.  If at any time prior to the Closing,
the Purchaser believes that it is unable to consummate the purchase of the
Purchased Securities, then the Purchaser shall promptly notify the Company in
writing of its intent to terminate this Agreement. Upon receipt of such notice,
this Agreement shall be null and void, and none of the Parties hereto shall have
any further liability to the other.

     

    2.5.           Closing.  Subject
to the terms and conditions of this Agreement, the closing of the Stock Purchase
(the “Closing”)
shall take place at the law office of Hodgson Russ LLP, 1540 Broadway,
24th
floor, New York, New York 10036, as soon as practicable after all conditions to
Closing under this Agreement are satisfied, but in no event later than a date
which shall be five (5) Business Days following the WiMAX License Renewal Date
(the “Closing
Date”), subject to extension of such Closing Date by mutual agreement of
both Parties.  In the event the Closing has not taken place as of the
Closing Date, as the same may be extended, then at the option of the Company,
this Agreement shall terminate and shall thereafter be null and
void.

    
      
         

      

      
        -12-

        
          

        

      

      
         

        
          Execution
Copy

        

      

    

     

    ARTICLE
III

    REPRESENTATIONS AND
WARRANTIES OF THE COMPANY AND TRUSSNET

     

    The
Company and Trussnet hereby do hereby jointly and severally represent and
warrant to the Purchaser that upon execution of this Agreement and at Closing
(each representation as to the Chinacomm Parties is made to the best Knowledge
of the Company and Trussnet):

     

    3.1.           Organization
and Good Standing.  Each of the Company, Trussnet and the
Chinacomm.  Parties  are entities duly organized, validly
existing and in good standing under the laws of their respective States or
countries of organization, all as set forth on Schedule 3.1 to this
Agreement.

     

    3.2.           Subsidiaries.  The
only direct subsidiary of the Company is Trussnet.  Trussnet is a
corporation duly organized, validly existing and in good standing under the laws
of the State of Nevada.  Schedule 3.2 to
this Agreement sets forth: (a) the names, (b) the authorized, issued
and outstanding shares of capital stock or other equity of Trussnet and of each
of the direct and indirect subsidiaries of Trussnet and all Chinacomm Parties,
and (c) the record and beneficial owners of such capital stock or other
equity.

     

    3.3.           Authorization
and Approvals.

     

    (a)           Each
of the Company, Trussnet and the Chinacomm Parties have the requisite corporate
power and authority and have obtained all requisite licenses, permits,
franchises, approvals and consents necessary (i) to own and operate its
properties and to carry on its business as now being conducted, and (ii) to
enter into and carry out the terms and conditions of this Agreement, as well as
all transactions contemplated hereunder.  All corporate proceedings
have been taken and all corporate authorizations have been secured which are
necessary to authorize the execution, delivery and performance by the Company,
Trussnet and the Chinacomm Parties of this Agreement.  This Agreement
has been duly and validly executed and delivered by the Company and Trussnet and
constitutes the valid and binding obligation of the Company and Trussnet,
enforceable against each of them in accordance with its terms.

     

    (b)           On
or before the Closing Date, each of the Chinacomm Parties have or shall have
executed an agreement in the form of Exhibit
J annexed hereto
(the “Chinacomm Parties Consent
Agreement”), pursuant to which each of the Chinacomm Parties shall have
approved this Agreement and shall have consented all of the transactions
contemplated hereby.

     

    3.4.           Effect of
Agreement.  As of the Closing, the consummation by any of the
Company, Trussnet and the Chinacomm Parties of the transactions contemplated
hereby and by the Chinacomm Agreements, including the execution, delivery and
consummation of this Agreement, will comply with all applicable law and will
not:

     

    (a)           Violate
any Requirement of Law applicable to or binding upon the Purchaser,
the  Company, Trussnet or any of the Chinacomm
Parties;

    
      
         

      

      
        -13-

        
          

        

      

      
         

        
          Execution
Copy

        

      

    

    (b)           Violate:
(i) the terms of the Articles of Incorporation or Bylaws of the Company, Trussnet and the
Chinacomm Parties; or (ii) any material agreement, contract, mortgage,
indenture, bond, bill, note, or other material instrument or writing binding
upon the Company,
Trussnet and the Chinacomm Parties or to which any of the Company, Trussnet and the
Chinacomm Parties is subject;

     

    (c)           Accelerate
or constitute an event entitling the holder of any indebtedness
of  any of the Company, Trussnet and the
Chinacomm Parties to accelerate the maturity of such indebtedness or to
increase the rate of interest presently in effect with respect to such
indebtedness; or

     

    (d)           Result
in the breach of, constitute a default under, constitute an event which with
notice or lapse of time, or both, would become a default under, or result in the
creation of any lien, security interest, charge or encumbrance upon any of the
assets or any other properties of any of the Company, Trussnet and the
Chinacomm Parties under any agreement, commitment, contract (written or
oral) or other instrument to which any of the Company, Trussnet and the
Chinacomm Parties is a party or by which it is bound or
affected.

     

    3.5.           Consents
and WiMAX License.

     

    (a)           All
consents, approvals or other authorizations or notices, required by any state or
federal regulatory authority or other Person or entity, including all PRC
Regulatory Authorities,  in order to permit the Purchaser, the
Company, Trussnet and the Chinacomm Parties to consummate the transactions
contemplated by this Agreement and the Chinacomm Agreements and to enable the
Company, Trussnet and the Chinacomm Parties to operate their respective
businesses, including the construction, installation and operation of the
Wireless Installations under the WiMAX License have been obtained and are in
full force and effect.

     

    (b)           On
or before the Closing Date, the MII or other applicable PRC Regulatory Authority
shall have renewed the WiMAX license granted to Chinacomm for a minimum of not
less than three years, and such WiMAX License, as so renewed shall be in
compliance with the requirements of the PRC Regulatory Authorities.

     

    3.6.           Legal
Proceedings.  There are no legal, administrative, arbitral or
other actions, claims, suits or proceedings or investigations instituted or
pending or, to the Knowledge of the Company’s management, threatened against any
of the Company, Trussnet and the Chinacomm Parties, or against any property,
asset, interest or right of any of the Company, Trussnet and the Chinacomm
Parties, that might reasonably be expected to have a Material Adverse Effect or
that might reasonably be expected to threaten or impede the consummation of the
transactions contemplated by this Agreement.

     

    3.7.           Regulatory
Compliance.  Neither the Company, Trussnet nor, to the best
Knowledge of the Company and Trussnet, any of the Chinacomm Parties have
violated any Requirement of Law, the violation of which would be reasonably
likely to have a Material Adverse Effect.  All filings of the Company
with the SEC have been filed in a timely fashion and are accurate and complete
in all material respects.

    
      
         

      

      
        -14-

        
          

        

      

      
         

        
          Execution
Copy

        

      

    

    3.8.           Capitalization;
Transactions with Trussnet Delaware.

     

    (a)           The
Company is authorized to issue 500,000,000 Class A Common Shares, 200,000,000
Class B Common Shares and 25,000,000 Series A Preferred
Shares.  Immediately prior to the Closing, the Company shall have no
more than 133,485,509 Class A Common Shares issued and outstanding on a Fully
Diluted Basis calculated as follows: (i) 86,117,088 Class A Common Shares
issued and outstanding plus, plus (ii) up to 47,368,421 Class A Common
Shares, issuable in the event the Company issues up to $45,000,000 in
convertible debentures, convertible at $.95 per share (the “Convertible
Debentures”).  As of the date of this Agreement, the Company
has issued approximately $27,000,000 of such Convertible
Debentures.  The Company and the Purchaser hereby agree that up to and
including the Closing Date, the Company shall have the right to issue up to
$45,000,000, in the aggregate, in Convertible Debentures.  The Company
has issued, or immediately prior to Closing the Company shall issue, to George
Alvarez and the other Persons listed on Schedule 3.8(a) to this
Agreement (the “Class
B Holders”) an aggregate of 66,909,088 Class B Common
Shares.  All of the issued and outstanding Class A Common Shares,
Class B Common Shares and the Convertible Debentures have been duly authorized
and are validly issued, fully paid, and non-assessable.  Other than
the Convertible Debentures and the transactions contemplated hereby, there are
no outstanding or authorized options, warrants, purchase rights, subscription
rights, conversion rights, exchange rights, or other contracts or commitments
that could require the Company to issue, sell, or otherwise cause to become
outstanding any of its capital stock.

     

    (b)           The
capitalization of each of Trussnet and the Chinacomm Parties is set forth on
Schedule 3.8(b) to this
Agreement.  All of the issued and outstanding shares of capital stock
or other securities of Trussnet and, to the Knowledge of the Company and
Trussnet, the Chinacomm Parties have been duly authorized and are validly
issued, fully paid, and non-assessable.  Other than the transactions
contemplated hereby and by the Chinacomm Agreements, there are no outstanding or
authorized options, warrants, purchase rights, subscription rights, conversion
rights, exchange rights, or other contracts or commitments that could require
Trussnet or any of the Chinacomm Parties to issue, sell, or otherwise cause to
become outstanding any of its capital stock or any other equity.

     

    (c)           Annexed
hereto as Schedule
3.8(c) is a description of (i) all of the assets and personnel of
Trussnet Delaware that has heretofore been transferred, or as at the Closing
Date will have been transferred, to Trussnet, (ii) all loans, services and other
products heretofore provided by Trussnet Delaware to Trussnet and/or the Company
for or on behalf of the Company or ChinaComm, and (iii) all accounts payable and
other amounts owing as at the date hereof and as at the Closing Date by the
Company or Trussnet to Trussnet Delaware; all of which amounts and obligations
have been incurred in the Ordinary Course of Business.

     

    3.9.           The
Purchased Securities.  The Purchased Securities (including the
Class A Common Shares issuable upon conversion of the Series A Preferred Shares)
and the Class B Common Shares will, upon issuance, be duly authorized, legally
and validly issued, fully paid and non-assessable, and free and clear of all
liens, mortgages, pledges, and other encumbrances of any nature, unless
expressly provided herein to the contrary.

     

    
      
         

      

      
        -15-

        
          

        

      

      
         

        
          Execution
Copy

        

      

    

    3.10.                      Employee
Benefit Plans.  Neither the Company nor Trussnet have any labor
union contract, bonus, pension, profit-sharing, retirement, deferred
compensation, savings, stock purchase, stock option, hospitalization, insurance
or other plan providing employees benefits, employment, agency, consulting or
similar contract (“Employee Benefit
Plans”) which cannot be terminated in thirty (30) days or less, without
cost, other than the Employment Agreement of George Alvarez.  The
Company and Trussnet reserve the right to establish Employee Benefit Plans in
the future.

     

    3.11.                      Permits
and Licenses.  The Company and Trussnet and to the best
Knowledge of the Company and Trussnet, the Chinacomm Parties have all licenses
and permits (federal, state and local) required by governmental authorities to
own, operate and carry on their respective business as now being conducted, and
such licenses and permits are in full force and effect.  No violations
are or have been recorded in respect to the licenses or permits, included but
not limited to fire and health and safety law violations, and no proceeding is
pending or threatened looking toward the revocation or limitation of any of
them.

     

    3.12.                      Chinacomm
Transaction.

     

    3.12.1.                      Controlled
Entities.  The Chinacomm Agreements require the formation of
certain entities, including Trussnet Gulfstream and Gulfstream Capital and the
formation of two wholly owned foreign investment enterprises or WOFEs (as
previously defined).  Trussnet Gulfstream and Gulfstream Capital are
or will be 100% owned subsidiaries of Trussnet, and Chinacomm Cayman, Chinacomm
Shanghai and Yunji are or on the Closing Date shall be partially-owned
subsidiaries of Trussnet.  Such Chinacomm Parties are sometimes
collectively referred to herein as the “Trussnet
Subsidiaries”.

     

    3.12.2.                      Performance.  The
Company shall cause $196,000,000 of the proceeds received under this Agreement
to: (i) be used to discharge the obligation of Gulfstream Capital that it
invest $196,000,000 in Chinacomm Cayman; and (ii) assure that upon
completion of this investment by Gulfstream, that these funds be used as
contemplated by the Chinacomm Agreements.  The balance of the proceeds
shall be used for the payment of commissions and general working capital, in
such amounts as are set forth on Schedule 3.12.2 annexed to
this Agreement.

     

    3.13.                      Material
Agreements.  Except as otherwise disclosed herein, each of the
Company, Trussnet and, to the best Knowledge of the Company and Trussnet, the
Chinacomm Parties, is not a party to any material agreement, the failure to
perform of which would have a Material Adverse Effect upon any of the Company,
Trussnet or such Chinacomm Parties.

     

    3.14.                      Insurance
Policies.  All insurance policies maintained by each of the
Company, Trussnet and, to the best Knowledge of the Company and Trussnet, the
Chinacomm Parties on its assets, business, officers and personnel provide
adequate and sufficient liability and property damage coverage commensurate with
the business practices of any of the Company, Trussnet and, to the best
Knowledge of the Company and Trussnet, the Chinacomm Parties.  To the
best Knowledge of the Company, each of the Company, Trussnet and, to the best
Knowledge of the Company and Trussnet, the Chinacomm Parties does not conduct
any business which would result in the cancellation of, or a material increase
in the premiums, for any of its insurance policies.

     

    
      
         

      

      
        -16-

        
          

        

      

      
         

        
          Execution
Copy

        

      

    

    3.15.                      Environmental
Matters.  With regard to matters of environmental compliance:
each of the Company, Trussnet and, to the best Knowledge of the Company and
Trussnet, the Chinacomm Parties has conducted and is conducting its business,
and has used and is using its properties, whether currently owned, operated or
leased or owned, operated or leased by the Company in compliance with all
applicable PRC and United States federal, and state and local environmental laws
and regulations, except where the failure to comply with such laws and
regulations, in the aggregate, has not had and could not have a Material Adverse
Effect on the condition (financial or otherwise), business or properties of the
Company, Trussnet or, to the best Knowledge of the Company and Trussnet, any of
the Chinacomm Parties.

     

    3.16.                      Undisclosed
Liabilities.  Neither the Company, Trussnet nor, to the best
Knowledge of the Company and Trussnet, the Chinacomm Parties  have any
liability (whether known or unknown, whether asserted or unasserted, whether
absolute or contingent, whether accrued or unaccrued, whether liquidated or
unliquidated, and whether due or to become due), including any liability for
Taxes, except for: (i) liabilities set forth in the Financial Statements,
and (ii) liabilities which have arisen after the date of the Financial
Statements in the Ordinary Course of Business (none of which results from,
arises out of, relates to, is in the nature of, or was caused by any breach of
contract, breach of warranty, tort, infringement, or violation of
law).

     

    3.17.                      Material
Defaults.  Neither the Company, Trussnet nor, to the best
Knowledge of the Company and Trussnet, the Chinacomm Parties is in default, or
alleged to be in default, under any material agreement, contract, lease,
mortgage, commitment, instrument or obligation, and to the best Knowledge of the
Company and Trussnet of no other party to any agreement, contract, lease,
mortgage, commitment, instrument or obligation to which the Company is a party
is in default thereunder, which default would have a Materially Adversely Effect
upon the properties, assets, business or prospects of the Company, Trussnet or
the Chinacomm Parties.

     

    3.18.                      Tax
Returns and Disputes.  The Company and Trussnet, and to the
best Knowledge of the Company and Trussnet, each of the Chinacomm Parties, has:
(a) filed all Tax Returns (PRC and United States federal, state and local)
required to be filed by it, (b) all such Tax Returns filed are complete and
accurate in all material respects, and (c) the applicable taypayer has paid
all Taxes shown to be due and payable on the returns or any assessments or
penalties received by it and all other Taxes (PRC and United States federal,
state and local) due and payable by it.  The Company and Trussnet, and
to the best Knowledge of the Company and Trussnet, each of the Chinacomm
Parties, has collected and withheld all Taxes which it has been required to
collect or withhold and has timely submitted all such collected and withheld
amounts to the appropriate authorities.  The Company and Trussnet, and
to the best Knowledge of the Company and Trussnet, each of the Chinacomm
Parties, is in compliance with the back-up withholding and information reporting
requirements under the Code and any state, local or foreign laws, and the rules
and regulations thereunder.

     

    3.19.                      Financial
Condition.  On or before the Closing Date, the Company and
Trussnet shall deliver and cause to be delivered to the Purchaser all of the
Financial Statements.  The Financial Statements of the Company and
Trussnet, and to the best Knowledge of the Company and Trussnet, each of the
Chinacomm Parties, present fairly the financial position, results of operations
and cash flows of the Company for the fiscal period then ended and were prepared
in accordance with United States generally accepted accounting principles
(“GAAP”),
except with respect to the Financial Statements of Chinacomm, the same have been
prepared in accordance with either GAAP or auditing standards accepted in the
European Union.  The Purchaser acknowledges that the Company and
Trussnet have changed their fiscal year end from June 30th to
December 31st.

     

    
      
         

      

      
        -17-

        
          

        

      

      
         

        
          Execution
Copy

        

      

    

    3.20.                      No
Adverse Change.  Since December 31, 2007 there has been no
Material Adverse Change in the business, financial condition, results of
operations, assets, or liabilities of the Company, Trussnet and, to the best
Knowledge of the Company and Trussnet, each of the Chinacomm
Parties.

     

    3.21.                      Disclosure.  The
representations and warranties: (a) of the Company and
Trussnet  contained in this Agreement and in any agreement,
certificate, affidavit, statutory declaration or other document delivered or
given by the Company or Trussnet pursuant to this Agreement, and (b) to the
best Knowledge of the Company and Trustnet, of any of the Chinacomm Parties
contained in any of the Chinacomm Agreements or in any other agreement,
certificate, affidavit, statutory declaration or other document delivered or
given by any of the Chinacomm Parties pursuant to this Agreement or any
Chinacomm Agreements are true and correct and do not contain any untrue
statement of a material fact or omit to state a material fact necessary to make
the statements contained in such representations and warranties not misleading
to the Purchaser.

     

    3.22.                      Advice of
Changes.  Between the Effective Date and the Closing Date, the
Company and Trussnet shall promptly advise the Purchaser in writing of any fact,
the occurrence of which would render any representation or warranty contained in
this Agreement to be materially untrue.

     

     

    ARTICLE
IV

    REPRESENTATIONS AND
WARRANTIES OF THE PURCHASER

     

    The
Purchaser hereby represents and warrants to the Company as follows upon
execution of this Agreement and at Closing:

     

    4.1.           Organization
and Good Standing.  The Purchaser is a corporation duly
organized, validly existing and in good standing under the laws of the Cayman
Islands.

     

    4.2.           Authorization.  The
Purchaser has full power and authority to execute and deliver this Agreement and
to perform its obligations hereunder.  This Agreement constitutes the
valid and legally binding obligation of the Purchaser, enforceable in accordance
with its terms and conditions.  The Purchaser need not give any notice
to, make any filing with, or obtain any authorization, consent, or approval of
any government or governmental agency in order to consummate the transactions
contemplated by this Agreement, other than the Proxy Statement which the
Purchaser shall, prior to the Closing Date, distribute to its sharesholders in
order to obtain the consent of its shareholders to the transactions contemplated
by this Agreement.

     

    4.3.           Operation
of Business.  The Purchaser has the requisite corporate power
and authority and all requisite licenses, permits and franchises necessary to
own and operate its properties and to carry on its business as now being
conducted.

     

    4.4.           Execution
of Agreement.  The Purchaser has the requisite corporate power
and authority and (except for approval of Purchaser’s shareholders) has obtained
all approvals and consents necessary to enter into and carry out the terms and
conditions of this Agreement, as well as all transactions contemplated
hereunder.  All corporate proceedings have been taken and all
corporate authorizations have been secured which are necessary to authorize the
execution, delivery, and performance by the Purchaser of this
Agreement.  This Agreement has been duly and validly executed and
delivered by the Purchaser and constitutes the valid and binding obligations of
the Purchaser, enforceable in accordance with the respective terms.

     

    
      
         

      

      
        -18-

        
          

        

      

      
         

        
          Execution
Copy

        

      

    

    4.5.           Effect of
Agreement.  As of the Closing, the consummation by the
Purchaser of the transactions herein contemplated, including the execution,
delivery and consummation of this Agreement, will comply with all applicable law
and will not:

     

    (a)           Violate
any Requirement of Law applicable to or binding upon the Purchaser;

     

    (b)           Violate:
(i) the terms of the Articles of Incorporation or Bylaws of the Purchaser; or,
(ii) any material agreement, contract, mortgage, indenture, bond, bill, note, or
other material instrument or writing binding upon the Purchaser or to which the
Purchaser is subject;

     

    (c)           Result
in the breach of, constitute a default under, constitute an event which with
notice or lapse of time, or both, would become a default under, or result in the
creation of any lien, security interest, charge or encumbrance upon any of the
assets or any other properties of the Purchaser under any agreement, commitment,
contract (written or oral) or other instrument to which the Purchaser is a party
or by which it is bound or affected.

     

    4.6.           Consents.  No
consents, approvals or other authorizations or notices, other than those which
have been obtained and are in full force and effect, are required by any state
or federal regulatory authority or other Person or entity in connection with the
execution and delivery of this Agreement  and the performance of any
obligations contemplated hereunder.

     

    4.7.           Legal
Proceedings.  There are no legal, administrative, arbitral or
other actions, claims, suits or proceedings or investigations instituted or
pending or, to the Knowledge of the Purchaser’s management, threatened against
the Purchaser, or against any property, asset, interest or right of the
Purchaser, that might reasonably be expected to have a Material Adverse Effect
or that might reasonably be expected to threaten or impede the consummation of
the transactions contemplated by this Agreement.

     

    4.8.           Regulatory
Compliance.  To the best Knowledge of the Purchaser, it has not
violated any Requirement of Law, the violation of which would be reasonably
likely to have a Material Adverse Effect.  Further, the Purchaser is
not an “investment company” or a company “controlled” by an “investment company”
within the meaning of the Investment Company Act of 1940.

     

    4.9.           Purchase
for Investment.  The Purchaser is not acquiring the Purchased
Securities with a view to or for sale in connection with any distribution
thereof within the meaning of the Securities Act.

     

    4.10.         Disclosure.  The
representations and warranties of the Purchaser contained in this Agreement and
in any agreement, certificate, affidavit, statutory declaration or other
document delivered or given pursuant to this Agreement are true and correct and
do not contain any untrue statement of a material fact or omit to state a
material fact necessary to make the statements contained in such representations
and warranties not misleading to the Company.

     

    4.11.         Advice of
Changes.  Between the Effective Date and the Closing Date the
Purchaser shall promptly advise the Company in writing of any fact which, if
existing or known at the Effective Date, would have been required to be set
forth or disclosed in or pursuant to this Agreement or of any fact which, if
existing or known at the Effective Date, would have made any of the
representations untrue.

     

    
      
         

      

      
        -19-

        
          

        

      

      
         

        
          Execution
Copy

        

      

    

    4.12.         Due
Diligence.  The Purchaser is an accredited investor within the
meaning of the Securities Act and its management is sophisticated and
experienced in transactions such as the Stock Purchase.  The Purchaser
has commenced its Due Diligence Investigation and, as at the date of this
Agreement, but subject at all times to completion of its Due Diligence
Investigation in accordance with the provisions of Section 5.1.8 of this
Agreement, the Purchaser has no reason to believe that any of the
representations and warranties of the Company are misleading or inaccurate in
any material respect.  The decision by the Purchaser to execute this
Agreement is based upon the representations and warranties of the Company and
Trussnet set forth in this Agreement being true and correct in all material
respects as at the date of this Agreement and as at the Closing Date, and is not
based upon any verbal statements or representations made by any Person
Affiliated with the Company or Trussnet.   The obligations of the
Purchaser to acquire the Purchased Securities or otherwise consummate the
transactions contemplated by this Agreement is and shall at all times be subject
to completion by the Purchaser of a satisfactory Due Diligence
Investigation.

     

    4.13.         Restricted
Securities.  The Purchaser hereby acknowledges that the
Purchased Securities shall constitute restricted securities within the meaning
of the Securities Act and that all certificates evidencing the Purchased
Securities shall contain a restrictive legend prohibiting transfer without a
legal opinion or the availability of an exemption under the registration
requirements of the Securities Act.

     

    4.14           Sale of
Additional Debentures.  The Purchaser acknowledges that between
the date of this Agreement and the Closing Date, the Company shall have the
right (but not the obligation) to issue and sell up to $45,000,000 of
Convertible Debentures (inclusive of all Convertible Debenture previously
issued), as contemplated by Section 3.8(a)
above.

     

     

    ARTICLE
V

    CONDITIONS TO
CLOSING

     

    5.1.           The
satisfaction of the following conditions shall be a condition precedent to the
obligation of the applicable Party to consummate the transactions contemplated
by this Agreement:

     

    5.1.1.                      Purchaser’s
Shareholder Approval; Limited Redemptions.   A condition
to the obligation of the Purchaser to consummate the transactions contemplated
by this Agreement shall be both:

     

    (a)          the
approval of this Agreement and all of the transactions contemplated hereby and
by the Chinacomm Agreements by the holders of a majority of the issued and
outstanding publicly traded ordinary or common shares of the Purchaser that vote
at an extraordinary general meeting of shareholders of the Purchaser as required
by the Purchaser’s governing documents and applicable United States corporate
and securities laws; and

     

    (b)           the
election by holders of not more than the holders of 5% of such publicly traded
ordinary or common shares of the Purchaser to seek rescission or redemption of
their investment in the Purchaser and a return of their allocable portion of the
Purchaser’s trust fund.

     

    
      
         

      

      
        -20-

        
          

        

      

      
         

        
          Execution
Copy

        

      

    

    The
Purchaser has represented to the Company that, as a foreign private issuer, it
is not required to comply with the shareholder solicitation and proxy
requirements of Section 14 of the Securities Exchange Act of 1934 (the “Exchange Act”),
however, the Purchaser has further represented that it is the intention of the
Purchaser to solicit its shareholders with proxy materials in substantial
compliance with Section 14 of the Exchange Act.

     

    5.1.2.                      Employment
Agreement.  A condition to the obligation of the Company and
Trussnet to consummate the transactions contemplated by this Agreement shall be
the execution of an Employment Agreement with George Alvarez, President of the
Company.  Such agreement shall be in form and substance acceptable to
the Purchaser.

     

    5.1.3.                      Company,
Trussnet and Chinacomm Parties Representations.  A condition to
the obligation of the Purchaser to consummate the transactions contemplated by
this Agreement shall be that all representations and warranties of the Company
and Trussnet contained in this Agreement and in the Chinacomm Agreements shall
be or remain true and correct as of the Closing Date and no Material Adverse
Changes to the Company, Trussnet or any of the Chinacomm Parties shall have
occurred.

     

    5.1.4.                      Purchaser’s
Representations.  A condition to the obligation of the Company
and Trussnet to consummate the transactions contemplated by this Agreement shall
be that all representations and warranties of the Purchaser contained in this
Agreement shall be or remain true and correct as of the Closing Date and there
are no Material Adverse Changes to the Purchaser occurring since the Effective
Date.

     

    5.1.5                      
Consents.  A
condition to the obligation of the Purchaser to consummate the transactions
contemplated by this Agreement shall be the receipt of all required third party
consents and approvals, including, without limitation, all consents and
approvals of PRC Regulatory Authorities.  In addition, the Chinacomm
Parties Consent Agreement shall have been duly executed by all Chinacomm Parties
and delivered to the Purchaser.

     

    5.1.6.                      Officers
Certificate.  A condition to the obligation of the Purchaser to
consummate the transactions contemplated by this Agreement shall be that an
executive officer of the Company and Trussnet shall deliver a certificate at
Closing to the effect, that to his Knowledge, the conditions set forth in
Section 5.1.3 and Section 5.1.5 have been satisfied.  A
condition to the obligation of the Company and Trussnet to consummate the
transactions contemplated by this Agreement shall be that an executive officer
of the Purchaser shall deliver a certificate at Closing to the effect, that to
his Knowledge, the conditions set forth in Section 5.1.1 and
Section 5.1.4 have been satisfied.

     

    5.1.6                      WiMAX
License Renewal.  A condition to the obligation of the
Purchaser to consummate the transactions contemplated by this Agreement shall be
that on or before the Closing Date: (a) the MII or other applicable PRC
Regulatory Authority shall have renewed the WiMAX License previously granted to
Chinacomm for a minimum of not less than three (3) years, (b) such WiMAX
License, as so renewed shall provide, by its terms, that absent a breach or
default by Chinacomm which is not properly cured, the MII or such other PRC
Regulatory Authority shall automatically renew such WiMAX License at the
expiration of its term for additional successive periods of not less than three
years each, (c) such WiMAX License, as so renewed, shall permit Chinacomm
and the other Chinacomm Parties to install, operate and maintain the Wireless
Installations for the duration of such WiMAX License and all renewal thereof,
and (d) such WiMAX License, as so renewed, contain such other terms and
conditions as shall be acceptable to the Purchaser (collectively, the “WiMAX
License Renewal”).

    
      
         

      

      
        -21-

        
          

        

      

      
         

        
          Execution
Copy

        

      

    

    5.1.7                      Financial
Statements.  A condition to the obligation of the Purchaser to
consummate the transactions contemplated by this Agreement shall be that on or
before the date of mailing its Proxy Statement to its shareholders, as
contemplated by Section 5.1.1 above, the Purchaser shall have received all
of the Financial Statements required under Regulation S-X as promulgated under
the Securities Act; all of which Financial Statements shall be included in the
Proxy Statement and all of which shall be satisfactory to Purchaser in the
exercise of its sole discretion.

     

    5.1.8                      Due
Diligence Investigation.  A condition to the obligation of the
Purchaser to consummate the transactions contemplated by this Agreement shall be
that on or before the date of mailing its Proxy Statement to its shareholders,
as contemplated by Section 5.1.1
above, the Purchaser shall have completed a satisfactory Due Diligence
Investigation.

     

    5.1.9                      Legal
Opinions.  A condition to the obligation of the Purchaser to
consummate the transactions contemplated by this Agreement shall be that on or
before the Closing Date, the Purchaser shall have received a favorable legal
opinion from:

     

    (a)           Horwitz,
Cron & Jasper, P.L.C., as to matters only with respect to the Company,
Trussnet, Gulfstream Capital, Chinacomm Cayman and Chinacomm Shanghai that are
set forth in Sections 3.1, 3.2, 3.3, 3.4(b), 3.6, 3.8 and 3.9 of this
Agreement, provided, that such counsel may rely upon the separate opinions of
Cayman Island, Seychelles and Hong Kong legal counsel, as
applicable;

     

    (b)           Han
Kun Law Offices, Beijing, PRC, counsel to Chinacomm, as to (i) consummation
of all of the Chinacomm transactions contemplated by the Chinacomm Agreements,
(ii) the obtaining by Chinacomm, Trussnet Gulfstream, and Yunji of all
required approvals and consents from all PRC Regulatory Authorities having
jurisdiction over such Chinacomm Parties; and (iii) the validity and
enforceability of the WiMAX License, as so renewed in accordance with Section
5.1.6 above; and

     

    (c)           Global
Law Office, Beijing, PRC, counsel to Trussnet, as to the validity and compliance
with Applicable Laws in the PRC of the Chinacomm Agreements and the VIE joint
venture structure contemplated thereby, and such other matters as the Purchaser
may reasonably request.

     

    5.1.10                      Purchaser
Legal Opinion.  A condition to the obligation of the Company
and Trussnet to consummate the transactions contemplated by this Agreement shall
be that on or before the Closing Date, the Company and Trussnet shall have
received a favorable legal opinion from Hodgson Russ LLP, counsel to the
Purchaser, with respect to the matters set forth in Sections 4.1, 4.2, 4.4
and 4.5(b) of this Agreement provided, that such counsel may rely upon a
separate legal opinion of Maples and Calder, Cayman Island counsel to the
Purchaser.

     

    5.1.11                      Purchaser
Board Approval.  A condition to the obligation of the Company
and Trussnet to consummate the transactions contemplated by this Agreement shall
be that on or before 5:00 P.M. (California time) on a date which shall be not
more than three (3) Business Days following the date of execution of this
Agreement by all of the Parties, the Purchaser or its legal counsel shall have
confirmed in writing to the Company and its counsel by email or facsimile
transmission that the board of directors of the Purchaser shall have approved
this Agreement and the transactions contemplated hereby.

    
      
         

      

      
        -22-

        
          

        

      

      
         

        
          Execution
Copy

        

      

    

    5.1.12                      Minimum
Funding of the Company.   A condition to the respective
obligations of each of the Purchaser and the Company to consummate the
transactions contemplated by this Agreement, shall be that on or before the
Closing Date, an aggregate of not less than $210,000,000 paid in cash or by wire
transfer of immediately available funds shall have been invested in the Company,
including, without limitation: (a) additional cash proceeds in excess of the
$105,000,000 Minimum Cash Purchase Price funded by the Purchaser on the Closing
Date as part of the aggregate Purchase Price for the Purchased Securities,
and/or (b) the net proceeds from the Additional Investment, if funded on the
Closing Date on terms and conditions that are acceptable to the Parties
hereto.

     

    5.1.13                      The
Merger Agreement.  A condition to the obligation of the
Purchaser to consummate the transactions contemplated by this Agreement shall be
that on or before the Closing Date, each of the Company, the Purchaser and the
Company Principal Stockholders shall have executed and delivered the Merger
Agreement.

     

     

    ARTICLE
VI

    COVENANTS OF THE
PARTIES

     

    6.1.           Full
Access.  During the period from the Effective Date of this
Agreement to the Closing, the Company shall, upon reasonable notice, afford to
the Purchaser and its representatives (including, without limitation, officers
and employees of the Purchaser and counsel, accountants and other professionals
retained by the Purchaser), such access during normal business hours to its
books, records, properties and such other information as the Purchaser may
reasonably request for the purpose of conducting any review or investigation
reasonably related to the transactions contemplated hereby, provided that such
access shall not interfere with the normal business operations of the
Company.

     

    6.2.           Disclosure
Assistance.  Each Party shall fully cooperate with the other
Party in the preparation of all documentation required to be filed with the SEC
(including all exhibits and amendments thereto) in connection with the Stock
Purchase and to provide all information requested by the SEC or any other
regulatory party.  The Parties shall cooperate with one another in
making public announcements concerning the transactions contemplated hereby;
provided, that no such announcements shall be made by any Party until the
condition specified in Section 5.1.12 of
this Agreement shall have been satisfied..  The Purchaser hereby
represents that it has commenced the preparation of proxy materials to be
delivered to its shareholders seeking approval of the Stock
Purchase.

     

    6.3.           Confidentiality.  Each
Party agrees to keep in confidence any confidential information learned about
the other Party either in the course of negotiating this Agreement or in
conducting the due diligence investigation contemplated hereunder, except for
information which: (i) was public knowledge at the time of the disclosure
of such information; (ii) is required to be disclosed by law; or
(iii) comes into the receiving party’s possession from a source which the
receiving party reasonably believes owes no duty of confidentiality to the
disclosing party.

    
      
         

      

      
        -23-

        
          

        

      

      
         

        
          Execution
Copy

        

      

    

    6.4.           Board of
Directors.  No later than five days prior to Closing, the
Purchaser and the Company shall agree upon a list of seven members to comprise
the Board of Directors of the Company as of the Closing Date, a majority of
which members of the Board of Directors shall be selected by or otherwise
acceptable to the Purchaser (the “Initial Board of
Directors”).  The Purchaser and George Alvarez agree that they
shall vote all Class A Common Shares, Class B Common Shares and Series A
Preferred Shares (if any), in a manner which shall assure the continued election
of each of the Initial Board of Directors.  In the event a member of
the Initial Board of Directors resigns or otherwise cannot continue to serve
upon the Board of Directors of the Company, then the approval of both the
Purchaser and the other holder(s) of the Class B Common Shares shall be required
to appoint a new member to the Board of Directors of the Company.  The
voting requirements set forth in this Section 6.4 shall
continue so long as the Purchaser continues to own of record eighty percent
(80%) of the aggregate number of Class A Common Shares and Equivalents acquired
under this Agreement or ten (10) years, whichever occurs
first.  ill

     

    6.5.           Company
Negative Covenants.  So long as the Purchaser shall be the
beneficial  owner of eighty percent (80%) of the aggregate number of
Class A Common Shares and Equivalents acquired by the Purchaser under this
Agreement, the Company shall not take any of the following actions without the
prior approval or consent of either (i) the Purchaser, or (ii) the holders of at
least 80% of the holders of the Class B Common Shares:

     

    6.5.1.                      issue,
at an issuance price or conversion or exercise price per Class A Share which
shall be less than
the $2.25 Per Share Price at which the Purchaser acquired its Class A Shares
(subject to adjustments for any stock split or recapitalization of the Company),
any Class A Common Shares, Class B Common Shares, Series A Preferred Shares, or
other securities of the Company convertible into or exercisable for any Class A
Shares;

     

    6.5.2.                      own
less than 100% of the issued and outstanding equity securities of
Trussnet;

     

    6.5.3                      acquire,
for a total consideration in excess of $20,000,000, whether through merger,
stock purchase, asset purchase, tender offer or other means, the stock, assets
or operations of any other entity or business;

     

    6.5.4.                      cause
or permit the Company, Trussnet or any of the Trussnet Subsidiaries to incur any
purchase money indebtedness, indebtedness for borrowed money , enter into any
leases that would be capital leases under GAAP or guaranty the obligations of
any other Person, including the Chinacomm Parties (collectively, “Indebtedness”) where
the aggregate of any such Indebtedness shall at any time, individually or in the
aggregate, exceed $100 million;

     

    6.5.5.                      with
the exception of the Chinacomm Agreements and the Employment Agreement, enter
into any agreement with an Affiliate;

     

    6.6.6                      revise
or amend any agreement with an Affiliate (including the terms of the Chinacomm
Agreements and the Employment Agreement; or

    
      
         

      

      
        -24-

        
          

        

      

      
         

        
          Execution
Copy

        

      

    

    6.6.7                      until
a date which shall be five (5) years from the Closing Date, any vote or decision
by the Company to effect a Sale of Control of the Company, Trussnet or any
Trussnet Subsidiaries.

     

    The
negative covenants set forth in this Section 6.6 shall be
of no further force or effect upon the earlier to occur of (a) the consummation
of the Merger, or (b) in the event of a Sale of Control of the Purchaser to any
unaffiliated Person that is in the telecommunications industry and engaged in
activities that are, or could reasonably be expected to be, competitive with the
business of the Company, the Company Subsidiaries or Chinacomm.

     

    6.7.           Adjustments
to Purchaser’s Class B Shares.  As of March 31,
2009 Maturity Date of the Purchaser Note, the Parties shall calculate the
aggregate number of Class A Common Shares and Equivalents owned by the Purchaser
and divide this by the aggregate number of Class A Common Shares then issued and
outstanding and the result thereof shall be the “Purchaser’s Class A
Percentage Interest” as at such date (the “Post-Closing Class A
Percentage Interest”).  In the event  the Purchaser’s
Post Closing Class A Percentage Interest shall thereafter decrease, whether as a
result of either (a) the issuance by the Company of additional Class A Common
Shares or other securities convertible into or exercisable for Class A Common
Shares (not subject to any anti-dilution right) or (b) the sale by the Purchaser
of any Class A Common Shares or Series A Preferred Shares, then and in such
event the Purchaser’s Post-Closing Class A Percentage Interest shall be
recalculated after giving effect to such issuance by the Company or sale by the
Purchaser and the same shall be deemed the “Adjusted Class A Percentage
Interest”.  The difference between the Purchaser’s Post-Closing
Class A Percentage Interest and the Adjusted Class A Percentage Interest shall
be referred to herein as the “Purchaser’s Percentage
Decrease”.  Upon the occurrence of the Purchaser’s Percentage
Decrease, a number of Class B Common Shares held by the Purchaser as determined
by multiplying the aggregate number of Class B Common Shares then owned by the
Purchaser by the Purchaser’s Percentage Decrease shall be transferred to the
Class B Holders (other than the Purchaser) on a pro rata basis.

     

    The
following is intended as an example by way of illustration only:

     

    Assuming
that at the expiration of the Post-Closing Option Period, the Purchaser is the
holder of 30,000,000 Class B Common Shares and 100,000,000 Class A Common
Shares. Further, the aggregate issued and outstanding Class A Common Shares of
the Company is 220,000,000 Class A Common Shares.  The Purchaser’s
Post-Closing Class A Percentage Interest would then be 45.45% of all Class A
Common Shares.  The Purchaser thereafter sells 20,000,000 of its Class
A Common Shares, causing the Purchaser’s Adjusted Class A Percentage Interest to
be 36.36% (80.0 million divided by 220.0 million), representing a Purchaser’s
Percentage Decrease of 9.09%.  As a result 2,727,000 of the Class B
Common Shares held by the Purchaser would be transferred to the other Class B
Holders on a pro rata basis, calculated as the 9.09% Purchaser’s Percentage
Decrease multiplied by 30,000,000.

    
      
         

      

      
        -25-

        
          

        

      

      
         

        
          Execution
Copy

        

      

    

    The
foregoing provisions of this Section 6.7 shall
terminate upon consummation of the Merger.

     

    6.8           Conflicting
Commitments.                                                                

     

    (a)           From
the date of execution of this Agreement and through and including such date
which shall be the earlier to
occur of (a) the five (5) Business Days following the WiMAX License Renewal
Date, or (b) the termination of this Agreement by mutual agreement of the
Parties prior to such WiMAX Renewal Date, except and then only to the extent
otherwise provided in Section 4.14 of this
Agreement, neither the Company, Trussnet, nor any officer, director,
shareholder, financial advisor or other Affiliate of  any of the
Company or Trussnet, shall (i) enter into any legally binding agreement,
commitment, or other arrangement that would involve the issuance and sale or
transfer of any securities of the Company or of any of the material assets or
properties of the Company or Trussnet (whether by stock sale, asset sale,
merger, joint venture, consolidation or like combination), or (ii) enter into
any other legally binding arrangements or agreements that could reasonably be
expected to make the transactions contemplated by this Agreement impossible or
impracticable (each a “Conflicting
Commitment”).

     

    (b)           The
Company shall notify the Purchaser by fax or email immediately upon receipt of
notice of Chinacomm having obtained the WiMAX License
Renewal.  Notwithstanding the provisions of Section 6.8(a) above,
if the Purchaser then advises the Company in writing that (i) it has received a
term sheet or other proposals satisfactory to the Purchaser from one or more
Persons for a minimum amount of the additional financing contemplated by Section 5.1.12 of
this Agreement, and (ii) it will hold its stockholders’ meeting within the next
five (5) Business Days, the Company will not directly or indirectly enter into
any such Conflicting Commitment during such five (5) Business Day
period.  In addition, if the Purchaser shall obtain the requisite
shareholder approval contemplated by Section 5.1.1 of this Agreement, the
Company shall not thereafter enter into any Conflicting Commitment.

     

    6.9           Use of
Proceeds.  The aggregate proceeds payable by the Purchaser to
the Company in respect of the Purchase Price, shall be used by the Company
solely for the purchase of providing financing to enable ChinaComm or its
Affiliates to construct, install and operate the WiMAX Installations in up to 29
cities in China pursuant to the WiMAX License.  The application of
such Purchase Price shall include the purchase of equipment and other capital
assets being leased or subleased to China Comm.  The Company shall
provide to the Purchaser a detailed budget as to the application of such
Purchase Price and shall arrange, through the Chinacomm Agreements, to insure in
a manner reasonably acceptable to Purchaser that such proceeds are being used as
intended by the Parties and the budget.

    
      
         

      

      
        -26-

        
          

        

      

      
         

        
          Execution
Copy

        

      

    

    6.10           Participation
in Future Financings.

     

    (a)           In
the event that, on any on or more occasions during the five (5) year period of
time following the Closing Date, the Company shall elect to issue and sell for
cash any additional securities of the Company (each a “Financing”) and shall
receive any proposals for such purchases and Financing(s) from any other Person
(each, a “Financing
Proposal”), it shall promptly provide to the Purchaser a full and
complete copy of each such Financing Proposal and each of the amendments or
modifications thereto  The Purchaser shall have the right, but not the
obligation, upon notice to the Company and such Person providing the Financing
Proposal, to participate in such additional Financing (a) initially, in an
amount equal to up to one hundred percent (100%) of the first $200.0 million
dollar amount of securities to be issued in any one or more of such proposed
Financing(s), and (b) thereafter,. in an amount equal to up to fifty percent
(50%) the aggregate dollar amount of securities in excess of $200.0 million that
are to be issued in any such proposed Financing; in each case, all upon the same
terms and conditions set forth in the applicable Financing Proposal and/or in
any definitive financing documentation relating to such Financing.

     

    (b)           To
facilitate the foregoing, the Company shall provide the Purchaser or its
representatives with access to the Person or Person providing such Financing
Proposal and full and complete copies of all legal and related documents issued
by the Company or such other Person(s) in connection therewith.

     

    (c)           The
foregoing right to participate in future financings shall not be deemed to be or
construed as a “right of first refusal” granted to the Purchaser.

     

    (d)           Notwithstanding
the foregoing, the provisions of this Section 6.10 shall no
longer be applicable upon consummation of the Merger.

     

    6.11           Lock-Up
Agreements. On
the Closing Date, each of the Purchaser and George Alvarez shall enter into
agreements with the Company (the “Lockup Agreements”) pursuant
to which such Person shall each agree not to effect any public sale or
distribution of any of their Class A Common Shares or Series A Preferred Shares
for a period equal to twelve (12) months following the Closing Date (the “Restricted
Period”).

    

    6.12           Covenant
to Vote.  By their execution of this Agreement, each of the
Company Principal Stockholders do hereby irrevocably and unconditionally agree
to vote all of their shares of Company Class A Common Shares and Company Class B
Common Shares:

    

    (a)           IN FAVOR of the consummation
of all of the transactions contemplated by this Agreement, subject to
satisfaction of all conditions to the obligations of the Company and Trussnet to
consummate the transactions contemplated hereby; and

    

    (b)           following
the acquisition of the Purchased Securities pursuant to this Agreement, IN FAVOR of consummation of
the Merger and all of the other transactions contemplated by the Merger
Agreement.

    
      
         

      

      
        -27-

        
          

        

      

      
         

        
          Execution
Copy

        

      

    

    6.13           Securities
Filings.  Each of the Parties hereto to hereby covenant and
agree to mutually cooperate with each other and use their individual and
collective best efforts to (a) expeditiously and timely file with the SEC all
Form 10-K Annual Reports, Form 20-F Annual Reports, Form 8-K  and Form
6-K Interim Reports, Registration Statement on Form S-4 or F-4, and amendments
thereto, all Schedule 14-C and 14-F Information Statements, all Schedule 13D
filings, and all other documents required to be filed with the SEC, and (b) to
promptly respond to all comments, if any, received from the SEC, in order to (i)
consummate the transactions contemplated by this Agreement, and (ii) consummate
the Merger pursuant to the Merger Agreement.

     

    ARTICLE
VII

    ADDITIONAL RIGHTS AND
OBLIGATIONS

     

    7.1.           Termination.  This
Agreement may be terminated and the transactions contemplated herein may be
abandoned at any time prior to the Closing:

     

    (a)           by
mutual consent of the Purchaser and the Company;

     

    (b)           by
the Purchaser or the Company, if the Purchaser board approval condition
specified in Section
5.1.11 hereof shall not have been satisfied by 5:00 P.M. (California
time) on as date which shall be three (3) Business Days following the date of
execution of this Agreement by all Parties hereto;

     

    (c)           by
the Purchaser, in the event the results of its Due Diligence Investigation shall
not be satisfactory in the sole judgment and discretion of the
Purchaser;

     

    (c)           by
either the Purchaser or the Company, if the additional funding condition
specified in Section
5.1.12 hereof shall not have been satisfied by the Closing
Date;

     

    (d)           by
the Purchaser, in the event of the breach of any material representation and
warranty of the Company and Trussnet contained herein or in the Merger
Agreement, or the failure of the Company or Trussnet to perform all material
obligations and conditions on their part to be performed under this Agreement on
or before the Closing Date;

     

    (e)           by
the Company, in the event of the breach of any material representation and
warranty of the Purchaser contained herein or in the Merger Agreement, or the
failure of the Purchaser to perform all material obligations and conditions on
its part to be performed under this Agreement on or before the Closing
Date;

     

    (f)           by
either the Purchaser or by the Company upon the failure of the satisfaction of a
condition the obligations of the other Party or Parties to consummate the
transactions contemplated hereby, as set forth in Section 5.1 herein on
or prior to the Outside Closing Date; provided,
however, that a Party seeking to so terminate this Agreement pursuant to
this Section
7.1(g) shall have made a good faith effort to satisfy any condition
precedent on its part to be performed;

    
      
         

      

      
        -28-

        
          

        

      

      
         

        
          Execution
Copy

        

      

    

    (g)           by
the Company, in the event the transactions contemplated by this Agreement have
not been consummated on a date which shall be five (5) Business Days following
the WiMAX License Renewal Date (the “Outside Closing
Date”); provided,
however, that the Company reserves  the right to extend the
Outside Closing Date to a date which shall be twenty (20) Business Days
following the WiMAX License Renewal Date, or such later date as the Parties
hereto may mutually agree.

     

    A Party
terminating this Agreement pursuant to this Section shall give written notice
thereof to the other Party hereto, whereupon this Agreement shall terminate and
the transactions contemplated hereby shall be abandoned without further action
by any Party; provided, however, that if such termination is the result of a
breach of this Agreement, nothing herein shall affect the non-breaching Party’s
right to damages on account of such other Party’s breach.

     

    7.2           Notwithstanding the provisions of
Section 7.1 above, or any other provisions contained in this Agreement, any
Exhibit or schedule hereto or in any of the Chinacomm Agreements, each of the
Company and Trussnet, on behalf of themselves and each of their Affiliates, does
hereby irrevocably and unconditionally covenant and agree that they shall not
have any right, title, interest or claim of any kind (a “Claim”) in or to any
monies in the $115,000,000 Trust Fund maintained by the Purchaser for the
benefit of its public shareholders.  Accordingly, each of the Company
and Trussnet, on behalf of themselves and each of their Affiliates, hereby
waives any Claim that it or they may have in the future as a result of, or
arising out of, this Agreement or any of the transactions contemplated hereby,
and agree that none of them shall seek recourse against such trust fund for any
reason whatsoever.

     

    7.3.           Expenses.  Each
of the Parties hereto shall pay such Party's Transaction Express in connection
with this Agreement, other than as a result of the breach hereof by any other
party hereto.

     

    7.4.           Brokerage
and Banking Commissions.  The Purchaser shall be responsible
for any and all fees of Maxim Group LLC, Canaccord Capital Corp. and its
subsidiaries and Roth Capital Partners LLC arising from transactions
contemplated by this Agreement and the Merger.  The Company
acknowledges and agrees that it shall be responsible for any and all fees of
Knight Capital Partners, Inc. arising from the transactions contemplated by this
Agreement and the Merger.  Except for the foregoing, each of the
Purchaser and the Company represents that there are no brokerage or similar fees
to be paid in connection with the Stock Purchase and the Merger.

     

     

    ARTICLE
VIII

    ADDITIONAL MISCELLANEOUS
PROVISIONS

     

    8.1.           Executed
Counterparts.  This Agreement may be executed in any number of
original, fax, electronic, or copied counterparts, and all counterparts shall be
considered together as one agreement.

     

    8.2.           Successors
and Assigns.  Except as expressly provided in this Agreement,
each and all of the covenants, terms, provisions, conditions and agreements
herein contained shall be binding upon and shall inure to the benefit of the
successors and assigns of the Parties hereto.

     

    
      
         

      

      
        -29-

        
          

        

      

      
         

        
          Execution
Copy

        

      

    

    8.3.           Governing
Law.  This Agreement shall be governed by the laws of the State
of New York, without giving effect to any choice or conflict of law provision or
rule (whether of the State of New York or any other jurisdiction) that would
cause the application of the laws of any jurisdiction other than the State
of  New York.  In the event of a dispute related to or
arising from the terms of this Agreement, such dispute shall be resolved before
the American Arbitration Association in New York City, New York.

     

    8.4.           Amendment.  This
Agreement may be amended or modified only by a writing signed by all
Parties.

     

    8.5.           Waiver.  No
failure by any Party to insist on the strict performance of any covenant, duty,
agreement, or condition of this Agreement or to exercise any right or remedy on
a breach shall constitute a waiver of any such breach or of any other covenant,
duty, agreement, or condition.  No course of dealing between the
Parties, nor any failure to exercise, nor any delay in exercising, any right,
power or privilege of either Party shall operate as a waiver thereof, nor shall
any single or partial exercise of any right, power, or privilege hereunder
preclude any other or further exercise thereof or the exercise of any other
right, power or privilege.

     

    8.6.           Assignability.  This
Agreement is not assignable by either Party without the expressed written
consent of all Parties.

     

    8.7.           Notices.  All
notices, requests and demands hereunder shall be in writing and delivered by
hand, by facsimile transmission, by E-Mail, by mail, by telegram, or by
recognized commercial over-night delivery service (such as Federal Express, UPS,
or DHL), and shall be deemed given: (a) if by hand delivery, upon such
delivery; (b) if by facsimile transmission, upon telephone confirmation of
receipt of same; (c) if by E-Mail, upon confirmation of receipt of same;
(d) if by mail, forty-eight (48) hours after deposit in the United States mail,
first class, registered or certified mail, postage prepaid; (e) if by
telegram, upon telephone confirmation of receipt of same; or (f) if by
recognized commercial over-night delivery service, upon such
delivery.

     

    
      	
              If to the
      Purchaser:

            	
              Asia
      Special Situation Acquisitions Corp.

            
	 
      	
              c/o M & C Corporate
      Services Limited

            
	 
      	
              P.O.
      Box 309GT, Ugland House

            
	 
      	
              South
      Church Street

            
	 
      	
              George
      Town, Grand Cayman

            
	 
      	
              Attention:  Gary
      Hirst, Esq.

            
	 
      	
              Telephone:

            
	 
      	
              Facsimile:

            
	 
      	
              E-Mail:  gary@axiat.com

            
	 
      	 
      
	
              With a copy
      to:

            	
              Stephen
      A. Weiss, Esq.

            
	 
      	
              HodgsonRuss

            
	 
      	
              1540
      Broadway, 24th Floor

            
	 
      	
              New
      York, New York  10036-4039

            
	 
      	
              Telephone:  (646)
      218-7606

            
	 
      	
              Facsimile:  (212)
      751-0928

            
	 
      	
              E-Mail:  sweiss@hodgsonruss.com

            
	 
      	 
      

    

    
      
         

      

      
        -30-

        
          

        

      

      
         

        
          Execution
Copy

        

      

    

    

    
      	
              If to the
      Company:

            	
              China
      Tel Group, Inc.

            
	 
      	
              8105
      Irvine Center Drive, Suite 800

            
	 
      	
              Irvine,
      California  92618

            
	 
      	
              Attention:  George
      Alvarez

            
	 
      	
              Telephone:  (949)
      453-1775

            
	 
      	
              Facsimile:  (949)
      453-1822

            
	 
      	
              E-Mail:  galvarez@trussnet.net

            
	 
      	 
      
	
              With a copy
      to:

            	
              Lawrence
      W. Horwitz, Esq.

            
	 
      	
              HORWITZ,
      CRON & JASPER, P.L.C.

            
	 
      	
              Four
      Venture Plaza Suite 390

            
	 
      	
              Irvine,
      California  92618

            
	 
      	
              Telephone:  (949)
      450-4942

            
	 
      	
              Facsimile:  (949)
      453-8774

            
	 
      	
              E-Mail:  lhorwitz@hclaw.biz

            

    

    

    8.8.           Recitals.  The
facts recited under Recitals above, are hereby conclusively presumed to be true
as between and affecting the Parties.

     

    8.9.           Consents,
Approvals, and Discretion.  Except as herein expressly provided
to the contrary, whenever this Agreement requires consent or approval to be
given by a Party, or a Party must or may exercise discretion, the Parties agree
that such consent or approval shall not be unreasonably withheld, conditioned,
or delayed, and such discretion shall be reasonably exercised.  Except
as otherwise provided herein, if no response to a consent or request for
approval is provided within ten (10) days from the receipt of the request, then
the consent or approval shall be presumed to have been given.

     

    8.10.         
No
Third Party Beneficiaries.  This Agreement has been entered
into solely by and between the Parties, solely for their
benefit.  There is no intent by either Party to create or establish a
third party beneficiary to this Agreement, and no such third party shall have
any right to enforce any right, claim, or cause of action created or established
under this Agreement.

     

    8.11.          Best
Efforts.  The Parties shall use and exercise their best
efforts, taking all reasonable, ordinary and necessary measures to ensure an
orderly and smooth relationship under this Agreement, and further agree to work
together and negotiate in good faith to resolve any differences or problems
which may arise in the future.

     

    8.12           Entire
Agreement.   This Agreement and the Merger Agreement,
together with the Exhibits hereto and thereto represents the entire agreement
and understanding of the Parties with respect to the subject matter hereof and
thereof, and supercedes in their entirety all other agreements and
understandings, written or oral, including, without limitation, the Prior
Agreement which shall no longer be of any force or effect.

     

     

    [The
remainder of this page intentionally left blank.  Signature page to
follow.]

    
      
         

      

      
        -31-

        
          

        

      

      
         

        
          Execution
Copy

        

      

    

    IN WITNESS WHEREOF, this
Agreement has been duly executed by the Parties, and shall be effective as of
and on the Effective Date.

     

    
      	
              PURCHASER:

            	 
      	
              COMPANY:

            
	 
      	 
      	 
      
	
              ASIA SPECIAL SITUATION
      ACQUISITION CORP., a Cayman Island corporation

            	 
      	
              CHINA TEL GROUP, INC., a
      Nevada Company

            
	 	 	 
	
              By   /s/ Gary T.
      Hirst                                                                

              Dr.
      Gary T. Hirst, President

            	 
      	
              By   
      /s/ George
      Alverez                                                              

               George
      Alverez, President

            
	
              Dated:  August
      6, 2008

            	 
      	
              Dated:
      August 6, 2008

            
	
              TRUSSNET:

            	 
      	 
      	 
      
	 
      	 
      	 
      	 
      
	
              TRUSSNET USA, INC, a
      Nevada Company

            	 
      	 
      	 
      
	 	 	 	 
	
              By   /s/ George
      Alvarez                                                              

              George
      Alvarez, President

            	 
      	 
      	 
      
	
              Dated
      August 6, 2008

            	 
      	 
      	 
      

    

    
      
         

      

      
        -32-

        
          

        

      

      
         

        
          Execution
Copy

        

      

    

    COMPANY PRINCIPAL
STOCKHOLDERS:

    

    

    
      	
              With
      respect to the provisions of Section 6.4, Section 6.5, Section 6.12 and
      Section 7.2 only:

               

            
	
                                                                       WESTMOORE
      INVESTMENTS, L.P.

            
	
               

              /s/ Mario
      Alvarez                                                                  
      

              MARIO
      ALVAREZ                                                                                                                    
      By  /s/ Matt
      Jennings                                                              
      

            
	 
      
	
              ALVAREZ
      & ALVAREZ IRR
      TRUST                                                                                    WESTMOORE
      MANAGEMENT, LLC

               

               

              By:     /s/ George
      Alvarez                                                                                              
                       By: /s/
      Matt
      Jennings                                                              
      

                      Mario
      Alvarez, Trustee

            
	
               

              WESTMOORE
      CAPITAL
      GROUP                                                                                         
      WESTMOORE CAPITAL GROUP

              SERIES
      A
      LLC                                                                                                                           
       SERIES B LLC

               

               

              By: 
      /s/ Matt
      Jennings                                                                                                               
      BY:                                                                                             
      

               

            

    

     

    
      
         

      

      
        -33-

        
          

        

      

      
         

        
          Execution
Copy

        

      

    

    EXHIBIT A

     

    TECHNICAL
AGREEMENT

     

     

     

     

    
      
        Exhibit
A

        Page
1 of 1

         

      

      
         

        
          

        

      

      
         

        
          Execution
Copy

        

      

    

    EXHIBIT
B

     

    MANAGEMENT
AGREEMENT

     

     

     

     

     

    
      
        Exhibit
B

        Page
1 of 1

         

      

      
         

        
          

        

      

      
         

        
          Execution
Copy

        

      

    

    EXHIBIT
C-1

     

    EQUIPMENT
LEASE AGREEMENT

     

     

     

     

    
 

    
      
        Exhibit
C-1

        Page
1 of 1

         

      

      
         

        
          

        

      

      
         

        
          Execution
Copy

        

      

    

    EXHIBIT
C-2

     

    EQUIPMENT
SUBLEASE AGREEMENT

     

     

     

     

    
      
        Exhibit
C-2

        Page
1 of 1

         

      

      
         

        
          

        

      

      
         

        
          Execution
Copy

        

      

    

    EXHIBIT
D

     

    SUBSCRIPTION
AGREEMENT

     

     

     

     

    
      
        Exhibit
D

        Page
1 of 1

         

      

      
         

        
          

        

      

      
         

        
          Execution
Copy

        

      

    

    EXHIBIT
E

    

    DESCRIPTION
OF CLASS B COMMON SHARES OF

     

    CHINA
TEL GROUP INC.

     

    The
preferences, voting powers, qualifications and special or relative rights or
privileges of China Tel Group, Inc. (the "Company") shares of Class B Common
Shares, $0.0001 par value per share (the "Class B Common"), shall be as
follows:

     

    
      	
               
      

            	
              1.

            	
              Authorized
      Amount.

            

    

     

    There are
hereby authorized 200,000,000 shares of Series B Common Stock, subject to this
Description.  The authorized shares of Class B Common Shares shall not
be increased unless the holders of Eighty-Five Percent (85%) of the issued and
outstanding shares of Class B Common Shares vote in favor of increasing the
number of authorized Class B Common Shares.

     

    
      	
               
      

            	
              2.

            	
              Voting.

            

    

     

    Each
holder of a share of Class B Common Shares shall have the right to cast ten (10)
votes for each share of Class B Common Shares held by such shareholder at any
duly called meeting of shareholders or pursuant to a written consent of
shareholders

     

    
      	
               
      

            	
              3.

            	
              No Economic Interest
      or Right to Dividends.

            

    

     

    (a)           The
Class B Common Shares shall have no economic interest in the assets or
properties of the Company, nor shall the holders of any shares of Class B Common
Shares be entitled to receive any consideration, or share in the receipt of any
consideration, available to other holders of securities of the Company in
connection with (i) the sale or transfer of any securities or assets of the
Company (whether through stock sale, asset sale, merger, tender offer,
consolidation or like combination), or (ii) the transfer of any shares of Class
B Common Shares to any other Person.

     

    (b)           The
holders of Class B Common Shares shall not be entitled to the payment of any
dividends payable by the Company, in cash or in kind.

     

    4.        
    No Rights on
Liquidation.

     

    In the
event of any liquidation, dissolution or winding up of the Company, whether
voluntary or involuntary, the holders of shares of Class B Common Shares shall
not be entitled to receive any cash, cash-in-kind or assets whatsoever of the
Company.

     

    5.          
  Conversion.

     

    The Class
B Common Shares shall have no rights to convert into any other authorized shares
of the Company.

     

    
      
        Exhibit
E

        Page
1 of 2

         

      

      
         

        
          

        

      

      
         

        
          Execution
Copy

        

      

    

    6.           Transferability.

     

    The
consent of Eighty-One Percent (81%) of the issued and outstanding shares
of  Class B Common Shares shall be required for any holder
of  Class B Common Shares to sell, assign, or transfer any shares of
Class B Common Shares to any third party, or to grant proxies or voting rights
with respect to any shares of Class B Common Shares, except for any proxies
granted to George Alvarez relating to the Class B Common Shares.

     

    
      	
               
      

            	
              7.

            	
              Redemption
      Rights.

            

    

     

    The
Company shall redeem the Class B Common Shares on July 1, 2023  (the
“Redemption Date”).  On the Redemption Date each share of Class B
Common Shares shall be redeemed by the Company at the par value ($0.0001) of the
shares of Class B Common Shares.

     

     

     

     

     

    
      
        Exhibit
E

        Page 2
of 2

         

      

      
         

        
          

        

      

      
         

        
          Execution
Copy

        

      

    

    EXHIBIT
F

     

    DESCRIPTION
OF SERIES A PREFERRED SHARES OF

     

    CHINA
TEL GROUP INC.

     

    The
preferences, voting powers, qualifications and special or relative rights or
privileges of China Tel Group, Inc. (the "Company") shares of Series A Preferred
Shares, $0.0001 par value per share (the "Series A Preferred Shares"), shall be
as follows:

     

    1.            
Authorized
Amount.

     

    There are
hereby authorized 25,000,000 shares of Series A Preferred Shares, subject to
this Description.  The Series A Preferred shall have a $0.0001 par
value per share and a $10.00 liquidation or stated value per share (the “Stated
Value”).

     

    
      	
               
      

            	
              2.

            	
              Voting.

            

    

     

    Each
share of Series A Preferred Shares shall have the right to cast votes at any
duly called meeting of shareholders or pursuant to a written consent of
shareholders.  Each share of Series A Preferred Shares shall be
entitled to vote as if the Series A Preferred Shares were converted into
Class A Common Shares in accordance with Section 5 herein.

     

    3.           
 Dividends.

     

    The
holders of Series A Preferred Shares shall be entitled to receive a quarterly
cash dividend in respect of the Stated Value of each share of Series A Preferred
held (payable in equal quarterly amounts) as shall be equal to the same rate of
any annual interest or annual dividends payable by Asia Special Situation
Acquisition Corp. (“ASSAC”) in connection with obtaining of up to $165,000,000
of additional financing through the sale by ASSAC of notes, debentures or
preferred shares of ASSAC (the “ASSAC Senior Securities”), as contemplated by
that certain Amended and Restated Stock Purchase Agreement dated July _, 2008
among the Company, Trussnet USA, Inc. and ASSAC (the “Stock Purchase
Agreement”), to which this Description  is an exhibit.  The
dividend shall be paid by the Company to the holders of the Series A Preferred
Shares on September 30, December 31, March 31 and June 30 each
year.  The dividend shall be cumulative in the event the Company is
without sufficient funds to pay the dividend when
due.  Notwithstanding the foregoing, unless otherwise agreed to by the
Company, the annual dividend on the Series A Preferred Shares shall not be in
excess of 10% per annum.

     

    4.           
 Rights on
Liquidation.

     

    In the
event of any liquidation, dissolution or winding up of the Company, whether
voluntary or involuntary, the holders of shares of Series A Preferred Shares
shall be entitled to a liquidation preference over the holders of all classes or
series of the common stock of the Company in the sum of par value ($10.00) for
each share of Series A Preferred Shares issued and outstanding plus any unpaid
or accrued dividends owing to the holders of the Series A Preferred
Shares.

     

    
      
        Exhibit
F

        Page
1 of 3

         

      

      
         

        
          

        

      

      
         

        
          Execution
Copy

        

      

    

    
      	
               
      

            	
              5.

            	
              Conversion.

            

    

     

    (a)           The
Series A Preferred Shares shall be convertible at the option of the holder,
unless otherwise set forth herein.  In the event of a conversion, each
Series A Preferred Shares share shall convert into shares of Class A Common
Shares of the Company at the Conversion Rate.  The Conversion Rate per
share of Series A Preferred shall be $10.00 divided by the $2.25 Purchase Price
per share of Class A Common Shares paid by ASSAC pursuant to the Stock Purchase
Agreement, to which this Description is an Exhibit (the "Conversion
Rate").

     

    (b)           Subject
at all times to ASSAC’s right to retain shares of Series A Preferred in
aggregate dollar Stated Amount equal to the then aggregate outstanding principal
or stated amount of any ASSAC Senior Securities, all or an applicable portion of
the Series A Preferred Shares shares shall automatically convert into shares of
CHTL Class A Common Shares at the Conversion Rate, in the event
that:

     

    (i)           the
weighted average trading price of CHTL Class A Common Shares exceeds five (5)
times the per share Purchase Price of the Class A Common Shares for twenty (20)
consecutive trading days;

     

    (ii)           the
Class A Common Shares of the Company is traded on the NASDAQ Stock Exchange, the
American Stock Exchange or the New York Stock Exchange;

     

    (iii)           the
Class A Common Shares into which any shares of Series A Preferred Shares
shall be converted have been registered for resale under the Securities Act of
1933, as amended, or may be immediately sold without volume or other limitations
pursuant to Rule 144, as promulgated under the Securities Act; and

     

    (iv)           the
average weekly trading volume of the CHTL Class A Common Shares for four
consecutive weeks shall be not less than 1,000,000 shares per week.

     

    (c)           Anti-Dilution
Provisions.  In the event the Company shall reclassifies its
Class A Common Shares or effect any split of or otherwise recapitalizes its
Class A Common Shares, the number of shares into which the holder of Series A
Preferred convert shall be adjusted, so that the aggregate outstanding shares
before and after such transaction shall have the same value as before the
transaction.

     

    (d)           Sale of
Control.  In the event of a Sale of Control, as defined in the
Stock Purchase Agreement, each share of Series A Preferred Shares shall
automatically convert into shares of Class A Common Shares of the Company in
accordance with this Description.

    

    (e)           Definition.  The
term "Class A Common Shares" as used in this Section shall mean the shares of
the Class A Common Shares of the Company, authorized at the date of the initial
issuance of the Series A Preferred Shares or, in case of a reclassification or
exchange of such Class A Common Shares, shares of the stock into or for which
such Class A Common Shares shall be reclassified or exchanged and all provisions
of this Section 5 shall be applied appropriately thereto and to any stock
resulting from any subsequent reclassification or exchange thereof.

     

    6.           Transferability.

     

    The
shares of Series A Preferred Shares shall not be sold, transferred or encumbered
unless and until converted into Class A Common Shares.

     

    
      
        Exhibit
F

        Page 2
of 3

         

      

      
         

        
          

        

      

      
         

        
          Execution
Copy

        

      

    

    
      	
               
      

            	
              7.

            	
              Redemption of Series A
      Preferred Shares.

            

    

     

    (a)           Optional
Redemption  Upon not less than 90 days prior written notice to
the holders, the Company shall have the right (but not the obligation) to redeem
the Series A Preferred Shares shares on a date which shall be on or after seven
(7) years after the issuance of the Series A Preferred Shares shares (the
“Optional Redemption Date”).  On the Optional Redemption Date, unless
previously converted by the holder into Class A Common Shares, each share of
Series A Preferred Shares may be redeemed by the Company at a cash price of Ten
Dollars ($10.00) plus any accumulated dividend owing to the holders of the
Series A Preferred Shares by the Company as of the Optional Redemption
Date.

     

    (b)           Mandatory
Redemption.  It is understood that ASSAC shall have issued the
ASSAC Senior Securities in order to obtain the financing necessary to acquire
the Series A Preferred Shares.  The terms and conditions of the ASSAC
Senior Securities shall have been disclosed to and approved by the Company prior
to the issuance of the ASSAC Senior Securities.  The
Company  shall be obligated to redeem the Series A Preferred Shares
shares on the date and in the amount that ASSAC is required to redeem, payoff or
otherwise liquidate all or a portion of the ASSAC Senior
Securities.  Upon a determination of the exact terms of the ASSAC
Senior Securities, the Company shall amend this Description to the satisfaction
of ASSAC in order to provide assurances to ASSAC that the Company shall be
obligated to provide funds to ASSAC for the purpose of ASSAC discharging its
obligations under the ASSAC Senior Securities.

     

    
      
        Exhibit
F

        Page 3
of 3

         

      

      
         

        
          

        

      

      
         

        
          Execution
Copy

        

      

    

    EXHIBIT
G

     

    MERGER
AGREEMENT

     

    

     

    
      
        Exhibit
G

        Page
1 of 1

         

      

      
         

        
          

        

      

      
         

        
          Execution
Copy

        

      

    

    EXHIBIT
H

     

    FORM
OF PLEDGE AGREEMENT

     

     

     

    
      
        Exhibit
H

        Page
1 of 1

         

      

      
         

        
          

        

      

      
         

        
          Execution
Copy

        

      

    

    EXHIBIT
I

     

    FORM
OF PURCHASER NOTE

     

     

     

     

    
      
        Exhibit
I

        Page
1 of 1

         

      

      
         

        
          

        

      

      
         

        
          Execution
Copy

        

      

    

    EXHIBIT
J

     

    CHINACOMM
PARTIES CONSENT

     

     

     

     

    Exhibit J

    Page 1 of 1chinatel_8k-ex1002.htm

    EXHIBIT
10.2

     

    Execution
Copy

     

    AGREEMENT AND PLAN OF
MERGER

     

     

    THIS AGREEMENT AND PLAN OF
MERGER (the "Agreement"), dated August 6,
2008, is made and entered into as of the 31st day of
July 2008, by and among ASIA
SPECIAL SITUATION ACQUISITION CORP., a Cayman Island corporation ("ASSAC"); CHINA TEL GROUP, INC., a
Nevada corporation ("CHTL"); GEORGE ALVAREZ (“Alvarez”);
and CHTL ACQUISITION CORP.,
a Nevada corporation (“Mergerco”).  Alvarez
and the other Persons listed on Schedule
A annexed hereto and made a part hereof who are holders of CHTL Class B
Common Stock are hereinafter collectively referred to as the “CHTL Principal Shareholders”
and ASSAC, CHTL, the CHTL Principal Shareholders, and Mergerco are hereinafter
sometimes collectively referred to as the “Parties.”

     

    Recitals

     

    A.           Effective
as at the date of this Agreement, ASSAC, CHTL, Trussnet Group, Inc., a Nevada
corporation (“Trussnet”)
and the CHTL Principal Shareholders entered into an amended and restated stock
purchase agreement (the “Purchase Agreement”), pursuant to
which, inter
alia, on the “Closing Date” of the transactions contemplated by the
Purchase Agreement, ASSAC agreed to purchase for $270,000,000 the “Purchased
Securities” of CHTL (as those terms are defined in the Purchase
Agreement).

     

    B.           The
Parties hereto all deem it necessary and advisable to enter into this Agreement,
pursuant to which, inter
alia, Mergerco will be merged with and into CHTL with CHTL as the
surviving corporation of such merger (the “Merger”); as a result of which
ASSAC shall own 100% of the shares of capital stock of CHTL.

     

    C.           The
Board of Directors of ASSAC and Mergerco each deems the Merger advisable and in
the best interest of said corporations and its shareholders and have each
approved and adopted the form, terms and provisions of the Purchase Agreement,
this Agreement and the Merger.

     

    D.           The
Board of Directors of CHTL and the CHTL Principal Shareholders each deems
the Merger advisable and in the best interest of said corporation and its
shareholders and the Board of Directors of CHTL and the CHTL Principal
Shareholders have each approved and adopted the form, terms and provisions of
the Purchase Agreement, this Agreement and the Merger.

     

    E.           Alvarez is
a director, chief executive officer of CHTL and a CHTL Principal Shareholder,
and Alvarez and the other CHTL Principal Shareholders are entering into this
Agreement as an inducement to ASSAC.

     

    Agreement

     

    NOW,
THEREFORE, in consideration of the premises and of the mutual covenants
contained herein, the Parties agree as follows:

     

    
      
         

      

      
        -1-

        
          

        

      

      
         

      

    

     

    ARTICLE
I. - THE MERGER

     

    1.1           The
Merger.  Upon the terms and subject to the conditions set forth
in this Agreement, and in accordance with the General Corporation Law of the
State of Nevada (the "Nevada
Corporation Law"), Mergerco shall be merged with and into CHTL
at  the Effective Time.  Following the Effective Time, the
separate corporate existence of Mergerco shall cease and CHTL shall
continue as the surviving corporation of the Merger (the "Surviving Corporation") and
shall succeed to and assume all the rights and obligations of Mergerco in
accordance with the Nevada Corporation Law.

     

    1.2           Effective
Time.  Subject to the provisions of this Agreement, as soon as
practicable on or after the Effective Time, the Parties shall file a certificate
of merger or other appropriate documents (in any such case, the "Certificate of Merger")
executed in accordance with the relevant provisions of the Nevada Corporation
Law and shall make all other filings or recordings required under the
Nevada Corporation Law .  The Merger shall become effective at such
time and on such date as the Certificate of Merger is duly filed with the Nevada
Secretary of State, or at such other time as ASSAC and CHTL shall
agree should be specified in the Certificate of Merger (the time the Merger
becomes effective being referred to herein as the "Effective Time").

     

    1.3           Effects of the
Merger.  The Merger shall have the effects set forth in the
applicable provisions of the Nevada Corporation Law.

     

    1.4           Certificate of Incorporation
and Bylaws.

     

    (a)           The
CHTL certificate of incorporation as in effect immediately following the
Effective Time shall be the certificate of incorporation of the Surviving
Corporation until thereafter changed or amended as provided therein or by
applicable law.

     

    (b)           The
bylaws of CHTL as in effect immediately following the Effective Time shall be
the bylaws of the Surviving Corporation until thereafter changed or amended as
provided therein or by applicable law.

     

    1.5           Directors.  The
board of directors of CHTL immediately prior to the Effective Time shall
constitute the entire members of be the board of  directors of the
Surviving Corporation until the earlier of their resignation or removal or until
their respective successors are duly elected and qualified, as the case may
be.

     

    1.6           Officers.  The
officers of CHTL immediately prior to the Effective Time shall constitute all of
the officers of the Surviving Corporation until the earlier of their resignation
or removal or until their respective successors are duly elected and qualified,
as the case may be.

     

    1.7           Effect on Securities.  As
of the Effective Time, by virtue of the Merger and without any action on the
part of the holder of any shares of the outstanding capital stock, notes or
other evidences of indebtedness of CHTL, Mergerco or ASSAC:

    
      
         

      

      
        -2-

        
          

        

      

      
         

      

    

    (a)           ASSAC Ordinary Shares
and ASSAC
Warrants.  Each of the 14,000,000 ordinary shares of ASSAC,
$0.0001 par value per share (the “ASSAC Ordinary Shares”) that
are issued and outstanding as at the Effective Time of the Merger shall remain
issued and outstanding following the Effective Time of the Merger, except as
otherwise provided in Section 1.7(i)
below.  Each of the 17,225,000 issued and outstanding warrants to
purchase ASSAC Ordinary Shares (the “ASSAC Warrants”) that are
issued and outstanding as at the Effective Time of the Merger shall remain
issued and outstanding following the Effective Time of the Merger, except as
otherwise provided in Section 1.7(i) below.

     

    (b)           CHTL Treasury
Stock.  Each share of CHTL Class A common stock, par value
$0.001 per share ("CHTL Class A Common Stock"), each share of
CHTL Class B common stock, par value $0.001 per share ("CHTL Class B Common Stock") and each
share of CHTL preferred stock, $___ par value per share (the “CHTL Preferred Stock”) that is
held in the treasury of CHTL or by any wholly owned subsidiary of CHTL, and
each share of CHTL Class A Common Stock, each share of CHTL Class B Common Stock
and each share of CHTL Preferred Stock that is owned by ASSAC shall
automatically be cancelled and returned and shall cease to exist and no
consideration shall be delivered in exchange therefor.

     

    (c)           Mergerco Common
Stock.  Each share of common stock, $0.01 par value per share,
of Mergerco issued and outstanding immediately prior to the Effective Time shall
be converted into and exchanged for one issued, fully paid and nonassessable
share of common stock, par value $0.01 per share of the Surviving
Corporation.

     

    (d)           Outstanding CHTL Class A Common Stock. As
at the Effective Time, by virtue of the Merger and without any action on the
part of the holder of any shares of CHTL Class A Common Stock or any shares of
capital stock of ASSAC or the Surviving Corporation, each full share of CHTL
Class A Common Stock that is issued and outstanding as at the Effective Time of
the Merger (other than shares of CHTL Class A Common Stock to be canceled in
accordance with Section 1.7(b) hereof), shall be
converted into and exchanged for the right to receive twenty two and one-half
percent (0.225) of one ASSAC Ordinary Share (the “Class A Common Stock Exchange
Ratio”).

     

    (e)           Outstanding
CHTL Class B
Common
Stock.  As at the Effective Time, by virtue of
the Merger and without any action on the part of the holder of any shares of
CHTL Class B Common Stock or any shares of capital stock of ASSAC or the
Surviving Corporation,
each full share of CHTL Class B Common Stock that
is issued and outstanding
as at the Effective Time
of the Merger (other than
shares of CHTL Class B
Common Stock to be
canceled in accordance
with Section
1.7(b) hereof), shall be converted into the right to
receive that fraction of a
share of ASSAC Series A Voting Preferred Stock (the “Class B Common Stock
Exchange Ratio”)
as shall be determined by
dividing (i) 1,000,000, representing the aggregate
number of shares of ASSAC Series A Voting Preferred Stock being issued in
connection with the Merger, by (ii) the aggregate number of
shares of CHTL Class B Common Stock issued and outstanding as at the Effective
Time of the Merger.

     

    As of the
Effective Time, all shares of CHTL Class A Common Stock and CHTL Class B
Common Stock (collectively, the “CHTL Common Stock”) shall no
longer be issued or outstanding and shall automatically be canceled and retired
and shall cease to exist, and each holder of a certificate representing any such
shares of CHTL Common Stock shall cease to have any rights with respect thereto,
except the right to receive the ASSAC Ordinary Shares and the ASSAC Series A
Voting Preferred Stock, without interest, based on the Class A Common Stock
Exchange Ratio and the Class B Common Stock Exchange Ratio, respectively, as
provided in Section
1.7(d) and Section
1.7(e).

     

    
      
         

      

      
        -3-

        
          

        

      

      
         

      

    

    (f)           Outstanding CHTL Preferred
Stock. As at the Effective Time, by virtue of the Merger and without
any action on the part of the holder of any shares of CHTL Preferred Stock or
any shares of capital stock of ASSAC or the Surviving Corporation, each full
share of CHTL Preferred Stock that is issued and outstanding as at the Effective
Time of the Merger (other than shares of CHTL Preferred Stock to be canceled in
accordance with Section 1.7(b) hereof), shall be
converted into and exchanged for the right to receive that number of ASSAC
Ordinary Shares or fraction of an ASSAC Ordinary Share as shall be determined by
(i) converting such share of CHTL Preferred Stock, at the conversion price then
in effect, into the applicable number of shares of CHTL Class A Common Stock
(the “CHTL Preferred Stock
Conversion Shares”), and (ii) multiplying such number of CHTL Preferred
Stock Conversion Shares by twenty-two and one-half percent (0.225) (the “Preferred Stock Exchange
Ratio”).  For the avoidance of doubt, if each full share of
CHTL Preferred Stock (purchased at $10.00 per share) is convertible by the
holder into 4.4444 shares of CHTL Class A Common Stock, then such share of CHTL
Preferred Stock would be converted into and exchanged for one (1) full ASSAC
Ordinary Share.

     

    As of the Effective Time, all shares of
CHTL Preferred Stock shall no longer be issued or outstanding and shall
automatically be canceled and retired and shall cease to exist, and each holder
of a certificate representing any such shares of CHTL Preferred Stock shall
cease to have any rights with respect thereto, except the right to receive the
ASSAC Ordinary Shares, without interest, based on the Class A Common Stock
Exchange Ratio.

     

    (g)           Outstanding CHTL Debentures.  By
virtue of the Merger and without any action on the part of any holder of the
aggregate up to $45,000,000 maximum principal amount of 10% convertible
debentures of CHTL due December 31, 2008 and convertible by the holder(s) at
$0.95 per share into CHTL Class A Common Stock (the “CHTL Debentures”), each of
such CHTL Debentures issued and outstanding as of the Effective Time shall be
converted into an identical principal amount of 10% convertible debentures of
ASSAC (individually, an “ASSAC Debenture” and
collectively, as the “ASSAC
Debentures”).  Such ASSAC
Debentures:

     

    (i)           shall
be due and payable on March 31, 2009;

     

    (ii)           shall
be convertible by the holder at any time on or after January 1, 2009 and on or
prior to the March 31, 2009 maturity date of the ASSAC Debentures, into 0.236842
ASSAC Ordinary Share (the “ASSAC Debenture Exchange Ratio”) determined by
dividing $1.00 by the $0.95 conversion price of the CHTL Debentures and
multiplying the result thereof by $2.25).  For the avoidance of doubt,
each $1.00 principal amount of ASSAC Debentures shall be convertible into
0.2368421 ASSAC Ordinary Shares, and

     

    (iii)           shall
be in the form of the note annexed hereto as Exhibit
A and made a part hereof.

     

    (h)           CHTL Warrants and CHTL
Options. As at the Effective Time any issued and outstanding options
to purchase shares of CHTL Common Stock (“CHTL Options”) or warrants to
purchase shares of CHTL Common Stock (“CHTL Warrants”) shall be
cancelled and of no further force or effect.

     

    (i)           ASSAC Ordinary Shares Owned
by CHTL.  As at the Effective Time, each issued and outstanding
share of ASSAC Ordinary Shares, if any, that is owned of record by CHTL
immediately prior to the Effective Time of the Merger shall automatically be
cancelled and returned and shall cease to exist and no consideration shall be
delivered in exchange therefor.

    
      
         

      

      
        -4-

        
          

        

      

      
         

      

    

    (j)           Terms of ASSAC Series A
Voting Preferred Stock.  As at the Effective Time of the
Merger, the board of directors of ASSAC shall issue, from the 1,000,000
authorized shares of ASSAC preferred stock, an aggregate of 1,000,000 shares of
Series A Voting Preferred Stock of ASSAC, which shall contain the rights and
privileges that are substantially identical to the terms of the CHTL Class B
Common Stock or otherwise acceptable to Alvarez, including, without limitation,
the following:

     

    (i)           Amount.  The
authorized and issued shares of Series A Voting Preferred Stock shall not be
increased unless the holders of Eighty-Five Percent (85%) of the issued and
outstanding shares of Series A Voting Preferred Stock vote in favor of
increasing the number of authorized Series A Voting Preferred
Stock.

     

    (ii)           Voting. Each
holder of a share of Series A Voting Preferred Stock shall have the right to
cast one hundred (100) votes for each share of Series A Voting Preferred Stock
held by such shareholder at any duly called meeting of shareholders or pursuant
to a written consent of shareholders

     

    (iii)           No Economic Interest or
Right to Dividends. The Series A Voting Preferred Stock shall have
no economic interest in the assets or properties of ASSAC or any of its direct
or indirect Subsidiaries, nor shall the holders of any shares of Series A Voting
Preferred Stock be entitled to receive any consideration, or share in the
receipt of any consideration, available to other holders of securities of ASSAC
in connection with (A) the sale or transfer of any securities or assets of ASSAC
or any of its direct or indirect Subsidiaries (whether through stock sale, asset
sale, merger, tender offer, consolidation or like combination), or (B) the
transfer of any shares of Series A Voting Preferred Stock to any other
Person.  The holders of Series A Voting Preferred Stock shall not be
entitled to the payment of any dividends payable by ASSAC or any of its direct
or indirect Subsidiaries, in cash or in kind.

     

    (iv)           No Rights on
Liquidation.  In the event of any liquidation, dissolution or
winding up of ASSAC or any of its direct or indirect Subsidiaries, whether
voluntary or involuntary, the holders of shares of Series A Voting Preferred
Stock shall not be entitled to receive any cash, cash-in-kind or assets
whatsoever of ASSAC or any of its Subsidiaries.

     

    (v)           Conversion.  The
Series A Voting Preferred Stock shall have no rights to convert into any other
authorized shares or other securities of ASSAC or any of its direct or indirect
Subsidiaries.

     

    (vi)           Transferability.  The
consent of Eighty-One Percent (81%) of the issued and outstanding shares
of  Series A Voting Preferred Stock shall be required for any holder
of Series A Voting Preferred Stock to sell, assign, or transfer any shares of
Series A Voting Preferred Stock to any third party, or to grant proxies or
voting rights with respect to any shares of Series A Voting Preferred Stock,
except for any proxies granted to Alvarez relating to the Series A Voting
Preferred Stock.

     

    (vii)           Redemption
Rights.  ASSAC shall automatically redeem the Series A Voting
Preferred Stock on July 1, 2023  (the “Redemption
Date”).  On the Redemption Date each share of Series A Voting
Preferred Stock shall be redeemed by CHTL at the par value ($0.0001) of the
shares of Series A Voting Preferred Stock.

     

    (viii)           Proxy.  All
holders of CHTL Class B Common Stock who shall receive the ASSAC Series A Voting
Preferred Stock shall grant to Alvarez a proxy to vote all of their shares of
ASSAC Series A Voting Preferred Stock.

    
      
         

      

      
        -5-

        
          

        

      

      
         

      

    

    (k)           ASSAC
Note.   As at the Effective Time of the Merger, the then
outstanding amount of the $165,000,000 original principal amount of the ASSAC
non-interest bearing Note due March 31, 2009 and issued to CHTL under the terms
of the Purchase Agreement shall be cancelled and extinguished.

     

    1.8           Exchange of CHTL
Instruments.

     

    (a)           ASSAC
shall designate Continental Stock Transfer & Trust Company, or another a
person reasonably acceptable to CHTL to act as exchange agent in the Merger (the
"Exchange Agent"), and,
from time to time on, prior to or after the Effective Time, ASSAC shall make
available, or cause the Surviving Corporation to make available, to the Exchange
Agent ASSAC Ordinary Shares and ASSAC Series A Voting Preferred Stock and
ASSAC Debentures (collectively, the “ASSAC Securities”) in amounts and
at the times necessary for the delivery of the Merger Consideration,  to be
delivered upon surrender of certificates representing the shares of CHTL Common
Stock and CHTL Preferred Stock, the CHTL Debentures and other CHTL
Securities to be converted into ASSAC Securities pursuant to Section
1.7.

     

    (b)           As
soon as reasonably practicable after the Effective Time, the Exchange Agent
shall mail to each holder of record on the Record Date of CHTL Common Stock,
CHTL Preferred Stock and CHTL Debentures (collectively, “CHTL Securities”) (i) a letter of
transmittal (which shall specify that delivery shall be effected, and risk of
loss and title to the certificates evidencing shares of CHTL Common
Stock, CHTL Preferred Stock,  CHTL Debentures and other CHTL
Securities (collectively, “CHTL Instruments”) shall pass,
only upon delivery of the CHTL Instruments to the Exchange Agent and shall
be in a form and have such other provisions as ASSAC may reasonably specify) and
(ii) instructions for use in effecting the surrender of the CHTL Instruments in
exchange for the Merger Consideration and other ASSAC
Securities.  Upon surrender of a CHTL Instrument for cancellation to
the Exchange Agent or to such other agent or agents as may be appointed by
ASSAC, together with such letter of transmittal, duly executed, and such other
documents as may reasonably be required by the Exchange Agent, the holder of
such CHTL Instrument shall be entitled to receive in exchange therefor the
amount of Merger Consideration and other ASSAC Securities theretofore
represented by such CHTL Instruments which shall have been converted or exchange
pursuant to Section 1.7, and the CHTL Instruments so surrendered shall forthwith
be canceled.  In the event any CHTL Instruments shall have been lost,
stolen or destroyed, ASSAC may, in its discretion and as a condition precedent
to the delivery of the Merger Consideration, ASSAC Debentures or other ASSAC
Securities in respect of the CHTL Instruments, require the owner of such lost,
stolen or destroyed CHTL Instrument to deliver a affidavit or bond in such
amount or form as it may reasonably direct as indemnity against any claim that
may be made against ASSAC, the Surviving Corporation or the Exchange
Agent.

     

    (c)           All
Merger Consideration delivered upon the surrender of shares of CHTL Common
Stock, CHTL Preferred Stock, CHTL Debentures and other CHTL Securities in
accordance with the terms of this Section 1.8 shall be deemed to have been paid
in full satisfaction of all rights pertaining to the shares of CHTL Common
Stock, CHTL Preferred Stock and CHTL Debentures represented by such CHTL
Instruments.  At the Effective Time, the stock transfer books and note
register of CHTL shall be closed, and there shall be no further registration of
transfers on the stock transfer books of the Surviving Corporation of shares of
CHTL Common Stock or CHTL Debentures that were outstanding immediately prior to
the Effective Time.  If, after the Effective Time, CHTL Instruments
are presented to the Surviving Corporation or the Exchange Agent for any reason,
they shall be canceled and exchanged as provided in this Section
1.8.

    
      
         

      

      
        -6-

        
          

        

      

      
         

      

    

    1.9           Registration
Statement.

     

    Prior to the Effective Time of the
Merger, ASSAC and CHTL shall cause to be filed with the United States Securities
and Exchange Commission (the “SEC”), a registration for Form
S-4 and Form F-4 of CHTL and ASSAC, respectively (each, a “Registration
Statement”.  The Form S-4 Registration Statement of CHTL shall
include the Information Statement, and the) Form F-4 Registration Statement of
ASSAC shall include the Information Statement as the ASSAC prospectus, pursuant
to which ASSAC shall register under the Securities Act the Merger
Consideration.

     

    1.10           Holders of Record of CHTL
Securities.

     

    (a)           Only
holders of record of shares of CHTL Common Stock and CHTL Preferred Stock as at
the Effective Time of the Merger shall be entitled to receive ASSAC Ordinary
Shares and ASSAC Series A Voting Preferred Stock, as Merger Consideration as of
the Effective Time of the Merger.  Persons who are holders of CHTL
Debentures as at the Effective Time of the Merger shall only be entitled to
receive ASSAC Debentures in connection with the Merger.

     

    (b)           Persons
who timely deliver to CHTL prior to the Effective Time of the Merger duly
executed notices of conversion of their CHTL Debentures in accordance with the
terms of such CHTL Debentures hall be deemed to be holders of record of shares
of CHTL Common Stock as at the Effective Time of the Merger, even if a stock
certificate(s) evidencing such shares of CHTL Common Stock shall not have been
delivered to such Person as at the Effective Time of the Merger.

     

     1.11        
Closing. The
closing of the Merger (the “Closing”) will take place at
the offices of Hodgson Russ LLP, counsel to ASSAC, at its office in New York,
New York, within ten  days following the delivery of satisfaction or
waiver of the conditions precedent set forth in Section 4 or at such other date
as ASSAC and the CHTL Principal Shareholders shall agree (the “Effective Time”), but in no
event shall the Effective Time occur later than March 31, 2009, unless such date
shall be extended by mutual agreement of ASSAC and the CHTL Principal
Shareholders to not later than June 30, 2009 (the “Outside Effective
Time”).  On the Effective Time the Parties shall consummate the
Merger and cause the Articles of Merger to be filed at such Closing with the
Secretary of State of the State of Nevada.

    

    1.12           Dissenters
Rights.  Notwithstanding anything in this Agreement to the
contrary, any issued and outstanding shares of CHTL Common Stock held by a
Person who objects to the Merger (a "Dissenting
Shareholder") and complies with all the provisions of Section
92A.380 of the Nevada Corporation Law concerning the right of holders of CHTL
Common Stock to dissent from the Merger and require appraisal of their shares of
CHTL Common Stock, as the case may be (the "Dissenting Shares") shall not
be converted as described in Section 1.7 but shall
become the right to receive such consideration as may be determined to be due to
such Dissenting Shareholder pursuant to Section 92A.380 of the Nevada
Corporation Law.  If, after the Effective Time, such Dissenting
Shareholder withdraws his demand for appraisal or fails to perfect or otherwise
loses his right of appraisal, in any case pursuant to the Nevada Corporation
Law, his Dissenting Shares shall be deemed to be converted as of the Effective
Time into the right to receive his pro-rata shares of the Merger
Consideration.  CHTL shall give ASSAC (i) prompt notice of any demands
for appraisal of Dissenting Shares received by either CHTL, and (ii) the
opportunity to participate in all negotiations and proceedings with respect to
any such demands.  Neither CHTL nor ASSAC will voluntarily make any
payment with respect to any demands for appraisal and will not, except with the
prior written consent of the CHTL Principal Shareholders, settle or offer to
settle any such demands.

    
      
         

      

      
        -7-

        
          

        

      

      
         

      

    

    1.13           Change of Corporate
Name.   ASSAC shall use its best efforts (but shall not be
legally obligated) to obtain the requisite shareholders approval to change its
corporate name to “CHINATEL
CORPORATION” or such other corporate name as shall be acceptable to the
Parties, with such name change to be effective, pursuant to the ASSAC Restated
Charter, on or promptly following the Effective Time of the Merger.

    

    ARTICLE II - CERTAIN
DEFINITIONS

    

    Except as
defined elsewhere in this Agreement, all capitalized terms not expressly defined
in this Agreement shall have the same meaning as is defined in the Purchase
Agreement.  In addition to other terms defined in this Agreement and
the Purchase Agreement, the following terms shall have the meanings set forth
below:

    

    “Applicable Law” means any
domestic or foreign law, statute, regulation, rule, policy, guideline or
ordinance applicable to the businesses of the Parties and/or the
Merger.

    

    “Affiliate”  means
any one or more Person controlling, controlled by or under common control with
any other Person or their affiliate.

    

        “ASSAC Conversion Shares” shall
mean the number of ASSAC Ordinary Shares that may be issued following the
Effective Time of the Merger to holders of ASSAC Debentures upon their
conversion of up to $45,000,000 of such ASSAC Debentures.

    

    “ASSAC Ordinary Shares” shall
mean the ordinary shares of ASSAC, $0.0001 par value per share.

    

    “ASSAC Debentures” shall have
the meaning set forth in Section 1.7(g) above,
and shall refer to the maximum aggregate $45,000,000 principal amount of 10%
debentures of ASSAC, and in the form of Exhibit
A annexed hereto and made a part hereof.

    

    “ASSAC
Financings”  shall have the meaning set forth in Section 4.9 of
this Agreement.

    

    “ASSAC Restated
Charter”  shall mean the amended and restated certificate of
incorporation of ASSAC in effect as at the Effective Time of the
Merger.

    

    “Business Day” shall mean any
day, excluding Saturday, Sunday and any other day on which national banks
located in New York, New York shall be closed for business.

    

    “Dollar” and “$” means lawful money of the
United States of America.

    

    “Chinacomm Agreements” and
“Chinacomm Parties”
shall have the respective meanings as are defined in the Purchase
Agreement.

    

    “CHTL Common Stock” means the
collective reference to (a) the 500,000,000 shares of Class A common stock,
$0.001 par value per share, of CHTL, and (b) the 200,000,000 shares of Class B
common stock, $0.001 par value per share, of CHTL, authorized pursuant to its
certificate of incorporation, as amended, through the Effective
Time.

    
      
         

      

      
        -8-

        
          

        

      

      
         

      

    

    “CHTL Principal Executive
Officer” shall mean Alvarez, in his capacity as President and Chief
Executive Officer of CHTL.

    

    “CHTL Stockholders” means the
collective reference to the CHTL Principal Shareholders and all other holders of
CHTL Class A Common Stock, Class B Common Stock and CHTL Preferred
Stock.

    

    “Effective Time” shall mean the
date upon which the Merger shall be consummated.

    

    “Exchange Act” means the
Securities Exchange Act of 1934, as amended.

    

    “GAAP” means generally accepted
accounting principles in the United States of America as promulgated by the
American Institute of Certified Public Accountants and the Financial Accounting
Standards Board or any successor Institutes concerning the treatment of any
accounting matter.

    

    “Knowledge” means the knowledge
after reasonable inquiry.

    

    “Information Statement” shall
mean the information statement referred to in Section 1.9 that will
also constitute the ASSAC prospectus to be included in the Registration
Statement declared effective by the SEC.

    

    “Lien” means, with respect to
any property or asset, any mortgage, lien, pledge, charge, security interest,
encumbrance or other adverse claim of any kind in respect of such property or
asset.

    

    “Material Adverse Effect” with
respect to any entity or group of entities means any event, change or effect
that has or would have a materially adverse effect on the financial condition,
business or results of operations of such entity or group of entities, taken as
a consolidated whole.

    

    “Merger Consideration” shall
mean the collective reference to: (a) all shares of ASSAC Ordinary Shares issued
to the holders of CHTL Class A Common Stock and CHTL Preferred Stock as at the
Effective Time of the Merger pursuant to Section 1.7(d) and
Section 1.7(f)
of this Agreement, (b) all ASSAC Series A Voting Preferred Stock issued to
holders of CHTL Series B Common Stock as at the Effective Time of the Merger
pursuant to Section
1.7(e) of this Agreement, and (c) all ASSAC Debentures issued to holders
of CHTL Debentures as at the Effective Time of the Merger pursuant to Section 1.7(g) of
this Agreement.

    

    “Person” means any individual,
corporation, partnership, trust or unincorporated organization or a government
or any agency or political subdivision thereof.

    

    “Tax” (and, with correlative
meaning, “Taxes” and
“Taxable”)
means:

    

    (i) any
income, alternative or add-on minimum tax, gross receipts tax, sales tax, use
tax, ad valorem tax, transfer tax, franchise tax, profits tax, license tax,
withholding tax, payroll tax, employment tax, excise tax, severance tax, stamp
tax, occupation tax, property tax, environmental or windfall profit tax, custom,
duty or other tax, impost, levy, governmental fee or other like assessment or
charge of any kind whatsoever together with any interest or any penalty,
addition to tax or additional amount imposed with respect thereto by any
governmental or Tax authority responsible for the imposition of any such tax
(domestic or foreign), and

    
      
         

      

      
        -9-

        
          

        

      

      
         

      

    

    (ii) any
liability for the payment of any amounts of the type described in clause (i)
above as a result of being a member of an affiliated, consolidated, combined or
unitary group for any Taxable period, and

    

    (iii) any
liability for the payment of any amounts of the type described in clauses (i) or
(ii) above as a result of any express or implied obligation to indemnify any
other person.

    

    “Tax Return” means any return,
declaration, form, claim for refund or information return or statement relating
to Taxes, including any schedule or attachment thereto, and including any
amendment thereof.

    

        “Westmoore Warrants” means
warrants to purchase 500,000 Ordinary Shares of ASSAC upon substantially
identical terms and conditions as the warrants to be issued by ASSAC to
Canaccord Capital Corp. and Roth Capital Partners LLC under the engagement
agreement referred to in Section 4.13 of this
Agreement.

    

    ARTICLE III -
REPRESENTATIONS AND WARRANTIES OF CHTL

    

    CHTL
hereby severally represent and warrant to ASSAC as follows:

    

    3.1.           Organization
and Good Standing.  Each of CHTL, Trussnet and the “Chinacomm
Parties” (as that term is defined in the Purchase Agreement)  are
entities duly organized, validly existing and in good standing under the laws of
their respective States or countries of organization, all as set forth on Schedule 3.1 to the Purchase
Agreement.

     

    3.2.           Subsidiaries.  The
only direct subsidiary of CHTL is Trussnet.  Trussnet is a corporation
duly organized, validly existing and in good standing under the laws of the
State of Nevada.  Schedule 3.2 to
the Purchase Agreement sets forth: (a) the names, (b) the authorized,
issued and outstanding shares of capital stock or other equity of Trussnet and
of each of the direct and indirect subsidiaries of Trussnet and all Chinacomm
Parties, and (c) the record and beneficial owners of such capital stock or
other equity.

     

    3.3.           Authorization
and Approvals. Each of CHTL, Trussnet and the Chinacomm Parties have
the requisite corporate power and authority and have obtained all requisite
licenses, permits, franchises, approvals and consents necessary (i) to own and
operate its properties and to carry on its business as now being conducted, and
(ii) to enter into and carry out the terms and conditions of this Agreement, as
well as all transactions contemplated hereunder.  All corporate
proceedings have been taken and all corporate authorizations have been secured
which are necessary to authorize the execution, delivery and performance by CHTL
of this Agreement.  This Agreement has been duly and validly executed
and delivered by CHTL and Trussnet and constitutes the valid and binding
obligation of CHTL, enforceable in accordance with its terms.

     

    3.4.           Effect of
Agreement.  As of the Effective Time of the Merger, the
consummation by any of CHTL, Trussnet and the Chinacomm Parties of the
transactions contemplated hereby and by the Chinacomm Agreements, including the
execution, delivery and consummation of this Agreement, will comply with all
applicable law and will not:

     

    (a)           violate
any Requirement of Law applicable to or binding upon ASSAC,
the  Company, Trussnet or any of the Chinacomm Parties;

     

    
      
         

      

      
        -10-

        
          

        

      

      
         

      

    

    (b)           violate:
(i) the terms of the Articles of Incorporation or Bylaws of CHTL, Trussnet and
the Chinacomm Parties; or (ii) any material agreement, contract, mortgage,
indenture, bond, bill, note, or other material instrument or writing binding
upon CHTL, Trussnet and the Chinacomm Parties or to which any of CHTL, Trussnet
and the Chinacomm Parties is subject;

     

    (c)           accelerate
or constitute an event entitling the holder of any indebtedness
of  any of CHTL, Trussnet and the Chinacomm Parties to accelerate the
maturity of such indebtedness or to increase the rate of interest presently in
effect with respect to such indebtedness; or

     

    (d)           result
in the breach of, constitute a default under, constitute an event which with
notice or lapse of time, or both, would become a default under, or result in the
creation of any lien, security interest, charge or encumbrance upon any of the
assets or any other properties of any of CHTL, Trussnet and the Chinacomm
Parties under any agreement, commitment, contract (written or oral) or other
instrument to which any of CHTL, Trussnet and the Chinacomm Parties is a party
or by which it is bound or affected.

     

    3.5.           Consents
and WiMAX License.

     

    (a)           All
consents, approvals or other authorizations or notices, required by any state or
federal regulatory authority or other Person or entity, including all PRC
Regulatory Authorities,  in order to permit ASSAC, CHTL, Trussnet and
the Chinacomm Parties to consummate the transactions contemplated by this
Agreement and the Chinacomm Agreements and to enable CHTL, Trussnet and the
Chinacomm Parties to operate their respective businesses, including the
construction, installation and operation of the Wireless Installations under the
WiMAX License have been obtained and are in full force and effect.

     

    (b)           The
MII or other applicable PRC Regulatory Authority have renewed the WiMAX license
granted to Chinacomm for a minimum of not less than three years, and such WiMAX
License, as so renewed is in compliance with the requirements of the PRC
Regulatory Authorities.

     

    3.6.           Legal
Proceedings.  There are no legal, administrative, arbitral or
other actions, claims, suits or proceedings or investigations instituted or
pending or, to the Knowledge of CHTL’s management, threatened against any of
CHTL, Trussnet and the Chinacomm Parties, or against any property, asset,
interest or right of any of CHTL, Trussnet and the Chinacomm Parties, that might
reasonably be expected to have a Material Adverse Effect or that might
reasonably be expected to threaten or impede the consummation of the
transactions contemplated by this Agreement.

     

    3.7.           Regulatory
Compliance.  Neither CHTL, Trussnet nor, to the best Knowledge
of CHTL and Trussnet, any of the Chinacomm Parties have violated any Requirement
of Law, the violation of which would be reasonably likely to have a Material
Adverse Effect.  All filings of CHTL with the SEC have been filed in a
timely fashion and are accurate and complete in all material
respects.

    
      
         

      

      
        -11-

        
          

        

      

      
         

      

    

    3.8.           Capitalization;
Transactions with Trussnet Delaware.

     

    (a)           CHTL
is authorized to issue 500,000,000 shares of CHTL Class A Common Stock,
200,000,000 shares of CHTL Class B Common Stock and 25,000,000 shares of CHTL
Series A Preferred Stock.  Immediately prior to the Closing of the
transactions contemplated by the Purchase Agreement, CHTL shall have no more
than 133,485,509 shares of CHTL Class A Common Stock issued and outstanding on a
Fully Diluted Basis calculated as follows: (i) 86,117,088 shares of CHTL
Class A Common Stock issued and outstanding, plus (ii) up to 47,368,421
shares of CHTL Class A Common Stock, issuable in the event that CHTL issues up
to $45,000,000 in CHTL Debentures, convertible at $.95 per share.  As
of the date of this Agreement, CHTL has issued approximately $27,000,000 of such
CHTL Debentures.  CHTL and ASSAC hereby agree that up to and including
the Closing Date, CHTL shall have the right to issue up to $45,000,000 in the
aggregate principal amount of CHTL Debentures.  CHTL has issued to
Trussnet and Trussnet has distributed to George Alvarez and the other Persons
listed on Schedule
3.8(a) to the Purchase Agreement an aggregate of 66,909,088 shares of
CHTL Class B Common Stock.  All of the issued and outstanding shares
of CHTL Class A Common Stock, CHTL Class B Common Stock and the CHTL Debentures
have been duly authorized and are validly issued, fully paid, and
non-assessable.  Other than the CHTL Debentures and the transactions
contemplated hereby, there are no outstanding or authorized options, warrants,
purchase rights, subscription rights, conversion rights, exchange rights, or
other contracts or commitments that could require CHTL to issue, sell, or
otherwise cause to become outstanding any of its capital stock.

     

    (b)           The
capitalization of each of Trussnet and the Chinacomm Parties is set forth on
Schedule 3.8(b)
to the Purchase Agreement.  All of the issued and outstanding shares
of capital stock or other securities of Trussnet and, to the Knowledge of CHTL
and Trussnet, the Chinacomm Parties have been duly authorized and are validly
issued, fully paid, and non-assessable.  Other than the transactions
contemplated hereby and by the Chinacomm Agreements, there are no outstanding or
authorized options, warrants, purchase rights, subscription rights, conversion
rights, exchange rights, or other contracts or commitments that could require
Trussnet or any of the Chinacomm Parties to issue, sell, or otherwise cause to
become outstanding any of its capital stock or any other equity.

     

    (c)           Annexed
as Schedule
3.8(c) to
the Purchase Agreement is a description of (i) all of the assets and personnel
of Trussnet Delaware that has heretofore been transferred, or as at the Closing
Date will have been transferred, to Trussnet, (ii) all loans, services and other
products heretofore provided by Trussnet Delaware to Trussnet and/or CHTL for or
on behalf of CHTL or ChinaComm, and (iii) all accounts payable and other amounts
owing as at the date hereof and as at the Closing Date by CHTL or Trussnet to
Trussnet Delaware; all of which amounts and obligations have been incurred in
the Ordinary Course of Business.

     

    3.9.           Employee
Benefit Plans.  Neither CHTL nor Trussnet have any labor union
contract, bonus, pension, profit-sharing, retirement, deferred compensation,
savings, stock purchase, stock option, hospitalization, insurance or other plan
providing employees benefits, employment, agency, consulting or similar contract
(“Employee Benefit
Plans”) which cannot be terminated in thirty (30) days or less, without
cost, other than the Employment Agreement of George Alvarez.  CHTL and
Trussnet reserve the right to establish Employee Benefit Plans in the
future.

     

    
      
         

      

      
        -12-

        
          

        

      

      
         

      

    

    3.10.           Permits
and Licenses.  CHTL and Trussnet and to the best Knowledge of
CHTL and Trussnet, the Chinacomm Parties have all licenses and permits (federal,
state and local) required by governmental authorities to own, operate and carry
on their respective business as now being conducted, and such licenses and
permits are in full force and effect.  No violations are or have been
recorded in respect to the licenses or permits, included but not limited to fire
and health and safety law violations, and no proceeding is pending or threatened
looking toward the revocation or limitation of any of them.

     

    3.11.           Chinacomm
Transaction.

     

    3.11.1.                      Controlled
Entities.  The Chinacomm Agreements require the formation of
certain entities, including Trussnet Gulfstream and Gulfstream Capital and the
formation of two wholly owned foreign investment enterprises or WOFIEs (as
previously defined).  Trussnet Gulfstream and Gulfstream Capital are
or will be 100% owned subsidiaries of Trussnet, and Chinacomm Cayman, Chinacomm
Shanghai and Yunji are or on the Closing Date shall be partially-owned
subsidiaries of Trussnet.  Such Chinacomm Parties are sometimes
collectively referred to herein as the “Trussnet
Subsidiaries”.

     

    3.11.2.                      Performance.  CHTL
shall have caused $196,000,000 of the proceeds received under the Purchase
Agreement to: (i) be used to discharge the obligation of Gulfstream Capital
that it invest $196,000,000 in Chinacomm Cayman; and (ii) assure that upon
completion of this investment by Gulfstream, that these funds be used as
contemplated by the Chinacomm Agreements.  The balance of the proceeds
shall be used for the payment of commissions and general working capital, in
such amounts as are set forth on Schedule 3.11.2 annexed to the
Purchase Agreement.

     

    3.12.           Material
Agreements.  Except as otherwise disclosed herein, each of
CHTL, Trussnet and, to the best Knowledge of CHTL, the Chinacomm Parties, is not
a party to any material agreement, the failure to perform of which would have a
Material Adverse Effect upon any of CHTL, Trussnet or such Chinacomm
Parties.

     

    3.13.           Insurance
Policies.  All insurance policies maintained by each of CHTL,
Trussnet and, to the best Knowledge of CHTL and Trussnet, the Chinacomm Parties
on its assets, business, officers and personnel provide adequate and sufficient
liability and property damage coverage commensurate with the business practices
of any of CHTL, Trussnet and, to the best Knowledge of CHTL and Trussnet, the
Chinacomm Parties.  To the best Knowledge of CHTL, each of CHTL,
Trussnet and, to the best Knowledge of CHTL and Trussnet, the Chinacomm Parties
does not conduct any business which would result in the cancellation of, or a
material increase in the premiums, for any of its insurance
policies.

     

    3.14.           Environmental
Matters.  With regard to matters of environmental compliance:
each of CHTL, Trussnet and, to the best Knowledge of CHTL and Trussnet, the
Chinacomm Parties has conducted and is conducting its business, and has used and
is using its properties, whether currently owned, operated or leased or owned,
operated or leased by CHTL in compliance with all applicable PRC and United
States federal, and state and local environmental laws and regulations, except
where the failure to comply with such laws and regulations, in the aggregate,
has not had and could not have a Material Adverse Effect on the condition
(financial or otherwise), business or properties of CHTL, Trussnet or, to the
best Knowledge of CHTL and Trussnet, any of the Chinacomm
Parties.

    
      
         

      

      
        -13-

        
          

        

      

      
         

      

    

    3.15.           Undisclosed
Liabilities.  Neither CHTL, Trussnet nor, to the best Knowledge
of CHTL and Trussnet, the Chinacomm Parties  have any liability
(whether known or unknown, whether asserted or unasserted, whether absolute or
contingent, whether accrued or unaccrued, whether liquidated or unliquidated,
and whether due or to become due), including any liability for Taxes, except
for: (i) liabilities set forth in the Financial Statements, and
(ii) liabilities which have arisen after the date of the Financial
Statements in the Ordinary Course of Business (none of which results from,
arises out of, relates to, is in the nature of, or was caused by any breach of
contract, breach of warranty, tort, infringement, or violation of
law).

     

    3.16.           Material
Defaults.  Neither CHTL, Trussnet nor, to the best Knowledge of
CHTL and Trussnet, the Chinacomm Parties is in default, or alleged to be in
default, under any material agreement, contract, lease, mortgage, commitment,
instrument or obligation, and to the best Knowledge of CHTL and Trussnet of no
other party to any agreement, contract, lease, mortgage, commitment, instrument
or obligation to which CHTL is a party is in default thereunder, which default
would have a Materially Adversely Effect upon the properties, assets, business
or prospects of CHTL, Trussnet or the Chinacomm Parties.

     

    3.17.           Tax
Returns and Disputes.  CHTL and Trussnet, and to the best
Knowledge of CHTL and Trussnet, each of the Chinacomm Parties, has:
(a) filed all Tax Returns (PRC and United States federal, state and local)
required to be filed by it, (b) all such Tax Returns filed are complete and
accurate in all material respects, and (c) the applicable taypayer has paid
all Taxes shown to be due and payable on the returns or any assessments or
penalties received by it and all other Taxes (PRC and United States federal,
state and local) due and payable by it.  CHTL and Trussnet, and to the
best Knowledge of CHTL and Trussnet, each of the Chinacomm Parties, has
collected and withheld all Taxes which it has been required to collect or
withhold and has timely submitted all such collected and withheld amounts to the
appropriate authorities.  CHTL and Trussnet, and to the best Knowledge
of CHTL and Trussnet, each of the Chinacomm Parties, is in compliance with the
back-up withholding and information reporting requirements under the Code and
any state, local or foreign laws, and the rules and regulations
thereunder.

     

    3.18.           Financial
Condition.  On or before the Closing Date, CHTL and Trussnet
shall deliver and cause to be delivered to ASSAC all of the Financial
Statements.  The Financial Statements of CHTL and Trussnet, and to the
best Knowledge of CHTL and Trussnet, each of the Chinacomm Parties, present
fairly the financial position, results of operations and cash flows of CHTL for
the fiscal period then ended and were prepared in accordance with United States
generally accepted accounting principles (“GAAP”), except with
respect to the Financial Statements of Chinacomm, the same have been prepared in
accordance with either GAAP or auditing standards accepted in the European
Union.

     

    3.19.           No
Adverse Change.  Since March 31, 2008 there has been no
Material Adverse Change in the business, financial condition, results of
operations, assets, or liabilities of CHTL, Trussnet and, to the best Knowledge
of CHTL and Trussnet, each of the Chinacomm Parties.

     

    3.20.           Disclosure.  The
representations and warranties: (a) of CHTL and
Trussnet  contained in the Purchase Agreement, in this Agreement and
in any agreement, certificate, affidavit, statutory declaration or other
document delivered or given by CHTL or Trussnet pursuant to the Purchase
Agreement and this Agreement, and (b) to the best Knowledge of CHTL and
Trustnet, of any of the Chinacomm Parties contained in any of the Chinacomm
Agreements or in any other agreement, certificate, affidavit, statutory
declaration or other document delivered or given by any of the Chinacomm Parties
pursuant to the Purchase Agreement and this Agreement or any Chinacomm
Agreements are true and correct and do not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the statements
contained in such representations and warranties not misleading to
ASSAC.

    
      
         

      

      
        -14-

        
          

        

      

      
         

      

    

    3.21.           Advice of
Changes.  Between the date of this Agreement and the Effective
Time of the Merger, CHTL and Trussnet shall promptly advise ASSAC in writing of
any fact, the occurrence of which would render any representation or warranty
contained in the Purchase Agreement and this Agreement to be materially
untrue.

     

    ARTICLE IV
-  REPRESENTATIONS AND WARRANTIES OF ASSAC

    

    ASSAC hereby represents and warrants to
CHTL, as follows:

    

    4.1.           Organization
and Good Standing.  ASSAC is a corporation duly organized,
validly existing and in good standing under the laws of the Cayman
Islands.

     

    4.2.           Authorization.  ASSAC
has full power and authority to execute and deliver this Agreement and to
perform its obligations hereunder.  This Agreement constitutes the
valid and legally binding obligation of ASSAC, enforceable in accordance with
its terms and conditions.  ASSAC need not give any notice to, make any
filing with, or obtain any authorization, consent, or approval of any government
or governmental agency in order to consummate the transactions contemplated by
this Agreement, other than the Proxy Statement which ASSAC shall, prior to the
Closing Date, distribute to its shareholders in order to obtain the consent of
its shareholders to the transactions contemplated by this Agreement, filings
required by Rule 425 under the Securities Act in connection with a public
announcement of this Agreement and the Registration Statement referred to in
Section 1.9 hereof.

     

    4.3.           Operation
of Business.  ASSAC has the requisite corporate power and
authority and all requisite licenses, permits and franchises necessary to own
and operate its properties and to carry on its business as now being
conducted.

     

    4.4.           Execution
of Agreement.  ASSAC has the requisite corporate power and
authority and has obtained all approvals and consents necessary to enter into
and carry out the terms and conditions of this Agreement, as well as all
transactions contemplated hereunder.  All corporate proceedings have
been taken and all corporate authorizations have been secured which are
necessary to authorize the execution, delivery, and performance by ASSAC of this
Agreement.  This Agreement has been duly and validly executed and
delivered by ASSAC and constitutes the valid and binding obligations of ASSAC,
enforceable in accordance with the respective terms.

     

    4.5.           Effect of
Agreement.  As of the Effective Time of the Merger, the
consummation by ASSAC of the transactions herein contemplated, including the
execution, delivery and consummation of this Agreement, will comply with all
applicable law and will not:

     

    (a)           violate
any Requirement of Law applicable to or binding upon ASSAC;

     

    (b)           violate:
(i) the terms of the Articles of Incorporation or Bylaws of ASSAC; or, (ii) any
material agreement, contract, mortgage, indenture, bond, bill, note, or other
material instrument or writing binding upon ASSAC or to which ASSAC is subject;
or

     

    (c)           result
in the breach of, constitute a default under, constitute an event which with
notice or lapse of time, or both, would become a default under, or result in the
creation of any lien, security interest, charge or encumbrance upon any of the
assets or any other properties of ASSAC under any agreement, commitment,
contract (written or oral) or other instrument to which ASSAC is a party or by
which it is bound or affected.

    
      
         

      

      
        -15-

        
          

        

      

      
         

      

    

    4.6.           Consents.  No
consents, approvals or other authorizations or notices, other than those which
have been obtained and are in full force and effect, are required by any state
or federal regulatory authority or other Person or entity in connection with the
execution and delivery of this Agreement  and the performance of any
obligations contemplated hereunder.

     

    4.7.           Legal
Proceedings.  There are no legal, administrative, arbitral or
other actions, claims, suits or proceedings or investigations instituted or
pending or, to the Knowledge of ASSAC’s management, threatened against ASSAC, or
against any property, asset, interest or right of ASSAC, that might reasonably
be expected to have a Material Adverse Effect or that might reasonably be
expected to threaten or impede the consummation of the transactions contemplated
by this Agreement.

     

    4.8.           Compliance
with Laws.  To the best Knowledge of ASSAC, it has not violated
any federal, state, local or foreign statute or other law (including federal and
state securities laws), the violation of which would be reasonably likely to
have a Material Adverse Effect.  Further, ASSAC is not an “investment
company” or a company “controlled” by an “investment company” within the meaning
of the Investment Company Act of 1940.  All filings by ASSAC with the
SEC have been filed in a timely fashion and are accurate and complete in all
material respects.

     

    4.9.           Capitalization.

     

    (a)           ASSAC
is authorized to issue 50,000,000 ASSAC Ordinary Shares and 1,000,000 shares of
preferred stock containing such terms and conditions as the ASSAC board of
directors may, from time to time determined.  As at the date of this
Agreement, there are issued and outstanding (i) 14,000,000 ASSAC Ordinary
Shares, of which 11,500,000 are held by public shareholders, and (ii) warrants
to purchase 17,225,000 additional ASSAC Ordinary Shares at an exercise price of
$7.50 per share (the “ASSAC Warrants”), of which (A) 5,725,000 ASSAC Warrants
are owned of record by Ho Capital Management LLC, and (B) 11,500,000 ASSAC
Warrants are owned by public shareholders.  As of the date of this
Agreement, ASSAC is indebted to its Chairman and Chief Executive Officer in the
amount of $500,000 and except for such amount, ASSAC has no outstanding
indebtedness for money borrowed.  An aggregate of $115,000,000 is
being held in trust, as described in ASSAC’s prospectus, dated January 23, 2008
(the “ASSAC
Prospectus”).

     

    (b)           All
of the issued and outstanding ASSAC Ordinary Shares and ASSAC Warrants have been
duly authorized and are validly issued, fully paid, and
non-assessable.

     

    (c)           Except
for (i) the ASSAC Warrants, and (ii) the issuance and sale by ASSAC of up to
$165,000,000 of additional ASSAC Ordinary Shares or other securities convertible
into or exercisable for ASSAC Ordinary Shares in connection with financings to
be undertaken by ASSAC between the date of this Agreement and the Effective Time
of the Merger in order to pay or prepay the “Purchaser Note” referred to in the
Purchase Agreement (the “ASSAC
Financings”), as at the date hereof and at the Effective Time of the
Merger, ASSAC does not have and will not have, issued or outstanding any
options, warrants, purchase rights, subscription rights, conversion rights,
exchange rights, or other contracts or commitments that could require ASSAC to
issue, sell, or otherwise cause to become outstanding any of its Ordinary
Shares.

     

    4.10.           The
Merger Consideration.  The Merger Consideration will, upon
issuance, be duly authorized, legally and validly issued, fully paid and
non-assessable, and free and clear of all liens, mortgages, pledges, and other
encumbrances of any nature, unless expressly provided herein to the
contrary.

    
      
         

      

      
        -16-

        
          

        

      

      
         

      

    

    4.11.           Employee
Benefit Plans.  ASSAC has no labor union contract, bonus,
pension, profit-sharing, retirement, deferred compensation, savings, stock
purchase, stock option, hospitalization, insurance or other plan providing
employees benefits, employment, agency, consulting or similar contract (“Employee Benefit
Plans”) which cannot be terminated in thirty (30) days or
less.

     

    4.12.           Permits
and Licenses.  ASSAC has all licenses and permits (federal,
state and local) required by governmental authorities to own, operate and carry
on its business as now being conducted, and such licenses and permits are in
full force and effect.  No violations are or have been recorded in
respect to the licenses or permits, included but not limited to fire and health
and safety law violations, and no proceeding is pending or threatened looking
toward the revocation or limitation of any of them.

     

    4.13.           Material
Agreements.  Except for (a) the Purchase Agreement, this
Agreement and the Exhibits hereto and thereto, and (b) engagement letter
agreement, dated August 4, 2008, with Canaccord Capital Corp. and Roth Capital
Partners LLC, ASSAC is not a party to any material agreement, the failure on
ASSAC’s part to perform could reasonably be expected to have a Material Adverse
Effect upon ASSAC or the consummation of the transactions contemplated hereby or
under the Purchase Agreement.

     

    4.14.           Insurance
Policies.  ASSAC maintains a Directors and Officers Liability
Policy which remains in full force and effect. To the best Knowledge of ASSAC,
it does not conduct any business which would result in the cancellation of, or a
material increase in the premiums, for any of its insurance
policies.

     

    4.15.           Undisclosed
Liabilities.  ASSAC does not have any liability (whether known
or unknown, whether asserted or unasserted, whether absolute or contingent,
whether accrued or unaccrued, whether liquidated or unliquidated, and whether
due or to become due), including any liability for Taxes, except for:
(i) liabilities set forth in the ASSAC financial statements included in
public filings under the Securities Act of 1933, as amended and the Securities
Exchange Act of 1934, as amended (the “ASSAC Financial Statements”),
and (ii) liabilities which have arisen after the date of the latest ASSAC
Financial Statements in the Ordinary Course of Business (none of which results
from, arises out of, relates to, is in the nature of, or was caused by any
breach of contract, breach of warranty, tort, infringement, or violation of
law).

     

    4.16.           Material
Defaults.  ASSAC is not in default, or alleged to be in
default, under any material agreement, contract, lease, mortgage, commitment,
instrument or obligation, and to the best Knowledge of ASSAC no other party to
any agreement, contract, lease, mortgage, commitment, instrument or obligation
to which ASSAC is a party is in default thereunder, which default would have a
Materially Adversely Effect upon the properties, assets, business or prospects
of the ASSAC.

     

    4.17.           Tax
Returns and Disputes.  ASSAC has: (a) filed all Tax
Returns (Cayman Island and United States federal, state and local) required to
be filed by it, (b) all such Tax Returns filed are complete and accurate in
all material respects, and (c) the applicable taypayer has paid all Taxes
shown to be due and payable on the returns or any assessments or penalties
received by it and all other Taxes (Cayman Island and United States federal,
state and local) due and payable by it.  ASSAC has collected and
withheld all Taxes which it has been required to collect or withhold and has
timely submitted all such collected and withheld amounts to the appropriate
authorities.  ASSAC is in compliance with the back-up withholding and
information reporting requirements under the Code and any state, local or
foreign laws, and the rules and regulations thereunder.

    
      
         

      

      
        -17-

        
          

        

      

      
         

      

    

    4.18.           Financial
Statements.  All ASSAC Financial Statements present fairly the
financial position, results of operations and cash flows of ASSAC for the fiscal
period then ended and were prepared in accordance with United States generally
accepted accounting principles (“GAAP”), except with
respect to the unaudited ASSAC Financial Statements which are subject to
non-material audit adjustments and do not contain all footnote disclosures that
are required under GAAP audited financial statements.

     

    4.19.           No
Adverse Change.  Since March 31, 2008 there
has been no Material Adverse Change in the business, financial condition,
results of operations, assets, or liabilities of ASSAC.

     

    4.20.           Disclosure.  The
representations and warranties of ASSAC contained in this Agreement and in any
agreement, certificate, affidavit, statutory declaration or other document
delivered or given to CHTL or Trussnet pursuant to this Agreement or the
Purchase Agreement are true and correct and do not contain any untrue statement
of a material fact or omit to state a material fact necessary to make the
statements contained in such representations and warranties not misleading to
CHTL and Trussnet.

     

    4.21.           Advice of
Changes.  Between the date hereof and the Effective Time of the
Merger, ASSAC shall advise CHTL shall promptly in writing of any fact, the
occurrence of which would render any representation or warranty contained in
this Agreement to be materially untrue.

     

    ARTICLE V - CONDITIONS
PRECEDENT

    

    5.1           Conditions Precedent to the
Obligations of CHTL and the CHTL Principal
Shareholders.   All obligations of CHTL and the CHTL
Principal Shareholders under this Agreement are subject to the fulfillment,
prior to or as of the Effective Time, as indicated below, of each of the
following conditions; any one of which may be waived at Closing by Alvarez, as
representative of all of the CHTL Principal Shareholders (the “CHTL Stockholders’
Representative):

    

    (a)           The
representations and warranties by or on behalf of ASSAC contained in this
Agreement or in any certificate or document delivered pursuant to the provisions
hereof shall be true in all material respects at and as of Effective Time as
though such representations and warranties were made at and as of such
time.

    

    (b)           ASSAC
shall have performed and complied in all material respects, with all covenants,
agreements, and conditions set forth in, and shall have executed and delivered
all documents required by this Agreement to be performed or complied with or
executed and delivered by it prior to or at the Effective Time.

    

    (c)           On
the Effective Time, an executive officer of ASSAC shall have delivered to CHTL a
certificate, duly executed by such Person and certifying, that to the best of
such Person’s knowledge and belief, the representations and warranties of ASSAC
set forth in this Agreement are true and correct in all material
respects.

    

    (d)           On
or before the Effective Time, the Certificate of Merger shall have been duly
filed with the Secretary of State of the State of Nevada, and the Effective Time
of the Merger shall have occurred.

    

    (e)           On
or before the Effective Time, the holders of a majority of the issued and
outstanding shares of CHTL Common Stock and the holders of a majority of the
issued and outstanding shares of ASSAC Ordinary Shares shall have approved the
Merger, the Restated ASSAC Charter and all of the other transactions
contemplated by the Purchase Agreement and this Agreement.

    
      
         

      

      
        -18-

        
          

        

      

      
         

      

    

    (f)           On
or before the Effective Time, ASSAC shall have amended the certificate of
incorporation of ASSAC to (i) increase to 500,000,000 shares of ASSAC Ordinary
Shares the authorized number of shares of ASSAC Ordinary Shares, and (ii)
authorize for issuance up to 25,000,000 shares of preferred stock, containing
such rights, privileges and preferences as the board of directors may, from time
to time determine, all pursuant to the ASSAC Restated Charter.  On the
Effective Time, ASSAC shall have sufficient authorized ASSAC Ordinary Shares to
complete the Merger and issue the maximum number of shares of ASSAC Ordinary
Shares that may constitute Merger Consideration.

    

    (g)           At
the Effective Time, all instruments and documents delivered to CHTL and the
Shareholders pursuant to provisions hereof shall be reasonably satisfactory to
legal counsel for CHTL.

    

    (h)           At
the Effective Time, CHTL shall have received an opinion of legal counsel
acceptable to CHTL, dated as of the Closing to the effect that:

    

    (i)           ASSAC
is a corporation duly organized, validly existing and in good standing under the
laws of the Cayman Islands;

    

    (ii)           This
Agreement has been duly authorized, executed and delivered by ASSAC and is a
valid and binding obligation of ASSAC enforceable in accordance with its
terms;

    

    (iii)           ASSAC
and Mergerco, through their Boards of Directors and stockholders, has taken all
corporate action under Cayman Island and Nevada law that is necessary for the
performance by ASSAC and Mergerco of their respective obligations under this
Agreement; and

    

    (iv)           The
Merger Consideration to be issued pursuant to this Agreement hereof will be duly
and validly issued, fully paid and non-assessable.

    

    (i)           ASSAC
shall have issued to the CHTL Stockholders or the Exchange Agent (to be held on
behalf of the CHTL Stockholders pending delivery of their CHTL Securities) the
ASSAC Ordinary Shares, the ASSAC Series A Voting Preferred Stock and the ASSAC
Debentures.

    

    (j)           ASSAC
shall have issued to the CHTL Principal Shareholders the 1,000,000 shares of
ASSAC Series A Voting Preferred Stock.

    

    (k)           Except
for (i) the ASSAC Warrants, or (ii) any ASSAC securities (convertible or
exercisable for ASSAC Ordinary Shares) issued in connection with one or more
ASSAC Financings contemplated by Section 5.1(n) below,
immediately prior to the Effective Time of the Merger, there shall not be issued
or committed to be issued any warrants, stock options, stock rights or other
commitments of any character relating to the issued or unissued Ordinary Shares
or preferred stock of ASSAC.

    

    (l)           At
the Effective Time, the Merger Consideration to be issued and delivered
hereunder will, when so issued and delivered, constitute valid and legally
issued fully-paid and non-assessable ASSAC Ordinary Shares and shares of ASSAC
Series A Voting Preferred Stock, and the ASSAC Debentures shall be valid and
binding obligations of ASSAC, enforceable in accordance with their
terms.

    

    (m)           In
connection with any ASSAC Financing obtained by ASSAC or the exercise of ASSAC
Warrants between the Closing Date under the Purchase Agreement and the Effective
Date of the Merger:

    
      
         

      

      
        -19-

        
          

        

      

      
         

      

    

    (i)           the
net proceeds of any ASSAC Financing or ASSAC Warrant exercise shall be used by
ASSAC to retire or prepay the ASSAC “Note” as that term is defined in the
Purchase Agreement; and

    

    (ii)           the
terms and conditions of such ASSAC Financing shall be reasonably acceptable to
the CHTL Stockholders’ Representative; provided,
however, that in connection with any ASSAC Financing, so long as (A) any
Ordinary Shares are issued and sold by ASSAC at an effective price of $10.00 per
share or greater, or (B) the conversion price(s) of any ASSAC notes, debentures
or preferred stock convertible into ASSAC Ordinary Shares, or the exercise price
of any ASSAC warrants to purchase ASSAC Ordinary Shares, shall be $10.00 per
share or greater, than and in such event, such financing terms and conditions
shall be deemed to be acceptable to the CHTL Stockholders’
Representative.

    

    (n)           Assuming
that a $105.0 million Additional Investment was made at the Closing of the
transactions contemplated by the Purchase Agreement in the form of shares of
CHTL Preferred Stock, the pro-forma capitalization of CHTL and ASSAC immediately
prior to and after giving effect to the Merger shall be substantially as set
forth on Schedule
A annexed hereto and made a part hereof.

    

    5.2           Conditions Precedent to the
Obligations of ASSAC.  All
obligations of ASSAC under this Agreement are subject to the fulfillment, prior
to or at Closing, of each of the following conditions (any one of which may be
waived at Closing by ASSAC):

    

    (a)           The
representations and warranties by CHTL contained in this Agreement or in any
certificate or document delivered pursuant to the provisions hereof shall be
true in all material respects at and as of the Closing as though such
representations and warranties were made at and as of such time;

    

    (b)           CHTL
shall have performed and complied with, in all material respects, with all
covenants, agreements, and conditions set forth in, and shall have executed and
delivered all documents required by this Agreement to be performed or complied
or executed and delivered by them prior to or at the Closing;

    

    (d)           As
soon as is reasonably practicable, CHTL shall have caused to have been delivered
to ASSAC all balance sheets of CHTL and its consolidated direct and indirect
Subsidiaries (and, if required, of Chinacomm and its consolidated subsidiaries),
and the related statement of operations, statements of cash flows and statements
of stockholders’ equity of CHTL and its consolidated direct and indirect
Subsidiaries (and, if required, of Chinacomm and its consolidated subsidiaries),
(i) as audited by independent auditors qualified under the Public Company
Accounting Oversight Board in accordance with Regulation S-X, as promulgated
under the Securities Act of 1933, as amended, and (ii) as unaudited, to the
extent that any of the foregoing financial statements are required to be
included in the Registration Statement to be filed with and declared effective
by the SEC as a pre-condition to the Merger and the other transactions
contemplated hereby (the “Required Financial
Statements”).

    

    (e)           On
or before the Effective Time, the Certificate of Merger shall have been duly
filed with the Secretary of State of the State of Nevada and the Effective Time
of the Merger shall have occurred.

    

    (f)           On
or before the Effective Time, the holders of a majority of the issued and
outstanding ASSAC Ordinary Shares entitled to vote at an extraordinary general
shareholders meeting of ASSAC shall have approved the Stock Purchase Agreement,
this Agreement, the Merger, the ASSAC Restated Charter and all of the other
transactions contemplated by hereby and thereby.

    
      
         

      

      
        -20-

        
          

        

      

      
         

      

    

    (g)           Not
in excess of 2% of the total issued and outstanding shares of CHTL Common Stock
shall constitute Dissenters Shares as at the Effective Time of the
Merger.

    

    (h)           On
the Effective Time, the CHTL Principal Executive Officer shall have delivered to
ASSAC a certificate, duly executed by such Person and certifying, that to the
best of such Person’s knowledge and belief, the representations and warranties
of CHTL set forth in this Agreement are true and correct in all material
respects.

    

    (i)           At
the Effective Time, ASSAC shall have received an opinion of Horwitz Cron &
Jasper P.L.C., legal counsel to CHTL, dated as of the Closing to the effect
that:

    

    (i)           CHTL
is a corporation duly organized, validly existing and in good standing under the
laws of the State of Nevada;

    

    (ii)           this
Agreement has been duly authorized, executed and delivered by CHTL and is a
valid and binding obligation of CHTL enforceable in accordance with its
terms;

    

    (iii)           
the Board of Directors and stockholders of CHTL have each taken all corporate
action under Nevada law that is necessary for the performance by CHTL of its
obligations under this Agreement;

    

    (iv)           as
to such other matters as ASSAC may reasonably request.

    

    (j)           ASSAC
shall have received legal or other assurances reasonably satisfactory to it that
the key executive employees of CHTL shall have elected to continue their
employment with CHTL subsequent to the Effective Time of the
Merger.

    

    (k)           Assuming
that a $105.0 million Additional Investment was made at the Closing of the
transactions contemplated by the Purchase Agreement in the form of shares of
CHTL Preferred Stock, the pro-forma capitalization of CHTL and ASSAC immediately
prior to and after giving effect to the Merger shall be substantially as set
forth on Schedule
A annexed hereto and made a part hereof.

    

    (l)           The
Registration Statement shall have been declared effective by the SEC and no stop
order proceedings with respect to such Registration Statement shall be pending
or threatened by the SEC.

    

    ARTICLE VI
-  COVENANTS

    

    6.1           Corporate Examinations and
Investigations.  Prior to the Effective Time, the Parties
acknowledge that they have been entitled, through their employees and
representatives, to make such investigation of the assets, properties, business
and operations, books, records and financial condition of the other as they each
may reasonably require.  No investigations, by a party hereto shall,
however, diminish or waive any of the representations, warranties, covenants or
agreements of the party under this Agreement.

    

    6.2           Further
Assurances.  The Parties shall execute such documents and other
papers and take such further actions as may be reasonably required or desirable
to carry out the provisions hereof and the transactions contemplated
hereby.  Each such party shall use its best efforts to fulfill or
obtain the fulfillment of the conditions to the Closing, including, without
limitation, the execution and delivery of any documents or other papers, the
execution and delivery of which are necessary or appropriate to the
Closing.

    
      
         

      

      
        -21-

        
          

        

      

      
         

      

    

    6.3           Confidentiality.  In
the event the transactions contemplated by this Agreement are not consummated,
ASSAC, the CHTL Principal Shareholders and the CHTL Principal
Executive Officer agree to keep confidential any information disclosed to each
other in connection therewith for a period of three (3) years from the date
hereof; provided, however, such obligation shall not apply to information
which:

    

    
      	
               
      

            	
              (i)

            	
              at
      the time of the disclosure was public
knowledge;

            

    

    

    
      	
               
      

            	
              (ii)

            	
              is
      required to be disclosed publicly pursuant to any applicable federal or
      state securities laws;

            

    

    

    
      	
               
      

            	
              (iii)

            	
              after
      the time of disclosure becomes public knowledge (except due to the action
      of the receiving party);

            

    

    

    
      	
               
      

            	
              (iv)

            	
              the
      receiving party had within its possession at the time of disclosure;
      or

            

    

    

    (v)           is
ordered disclosed by a Court of proper jurisdiction.

    

    6.4           Registration
Statement. Each of ASSAC and CHTL shall (a) as soon as practicable
following delivery of the Required Financial Statements, file with the SEC the
Registration Statement(s) referred to in Section 1.9 of this Agreement, and (b)
use their best efforts cause such Registration Statement to be declared
effective by the SEC as soon thereafter as is practicable.

    

    6.5           Contents and Review of the
Registration Statement.  The Registration Statement shall
include a joint prospectus/information statement of ASSAC and CHTL and shall
provide for customary language in wuch each Party shall (a) provide the
information about its business and management to be included in such
Registration Statement, and (b) make customary representations about the
accuracy of the information it provides and the absence of materiall
misstatements or omissions.  Each of ASSAC and CHTL shall afford the
other Party and their respective legal counsel and other advisors with an
opportunity to review and comment on the filings.

    

    6.6           Voting of CHTL
Shares.  By their execution of this Agreement, each of the CHTL
Principal Shareholders (subject only to satisfaction of the conditions precedent
set forth in Section 5.1) do hereby irrevocably and unconditionally covenant and
agree, to vote all of their voting shares of CHTL Common Stock at the Special
Stockholders Meeting IN
FAVOR of the Merger, the ASSAC Restated Charter and all other
transactions contemplated hereby.

    

    6.7           ASSAC Restated
Charter.  Immediately following the Effective Time of the
Merger, ASSAC shall have filed the ASSAC Restated Charter in the form and
content satisfactory to the ASSAC and the CHTL Principal Shareholders with the
applicable filing office in the Cayman Islands.

    

    6.8           Boards of
Directors.   At the Effective Time of the Merger, the
initial Board of Directors of ASSAC, as the Surviving Corporation of the Merger,
shall consist of seven (7) Persons, all of whom shall be Persons designated in
the Purchase Agreement.  In addition, two (2) of such directors shall
be independent directors (as defined in the Sarbanes Oxley Act of 2002 or rules
of the stock exchange on which ASSAC trades, and one of whom shall be a
financial expert).

    
      
         

      

      
        -22-

        
          

        

      

      
         

      

    

    6.9           Indemnification of Officers
and Directors.   It is the intention of the Parties that
ASSAC shall indemnify its officers and directors to the fullest extent permitted
by Cayman Island law.  In such connection, the Parties agree not to
amend the certificates of incorporation or by-laws of either ASSAC if such
amendment shall have the effect of reducing, terminating or otherwise adversely
affecting the indemnification rights and privileges applicable to officers and
directors of ASSAC, as the same are in effect immediately prior to the Effective
Time of the Merger.

    

    6.10          Expenses. It is
understood and agreed that following the execution of this Agreement, any and
all expenses with respect to any filings, documentation and related matters with
respect to the consummation of the transactions contemplated hereby shall be the
individual responsibility of each of ASSAC and CHTL.

    

    6.11          Specific
Performance.  Each of Parties acknowledge and agree that
ASSAC’s purchase of the Purchased Securities (as defined in the Purchase
Agreement) and the other transactions contemplated by the Purchase Agreement
were consummated in partial reliance upon the fact that CHTL would become a
wholly-owned Subsidiary of ASSAC pursuant to the Merger contemplated by this
Agreement.   Accordingly, each of CHTL, Alvarez and the other
CHTL Principal Shareholders who are executing this Agreement do hereby
acknowledge and agree that, absent only a material breach by ASSAC or Mergerco
of their representations and warrants or the failure on the part of ASSAC or
Mergerco to perform any of their material covenants and agreements contained
herein, if:

    

    (a) CHTL, shall fail or refuse to
timely perform their respective covenants and agreements contained herein
(including those set forth in Section 5.2 and Article VI), and/or

    

    (b) Alvarez or the other CHTL Principal
Shareholders shall fail or refuse to timely perform their respective covenants
and agreements contained in Section 6.6 of this
Agreement or in Sections 6.4, 6.5 6.12 and 7.2 of the Purchase
Agreement,

    

    in either
case, that would make it impossible or impracticable for ASSAC to consummate by
March 31, 2009 the Merger contemplated hereby, ASSAC would have no adequate
remedy at law.  Accordingly, each of CHTL, Alvarez and the CHTL
Principal Shareholders do hereby agree that, in addition to any other remedies
available to ASSAC at law or in equity, ASSAC or their legal representative may
seek and obtain from the United States District Court for the Southern District
of California or any state court of competent jurisdiction in Los Angeles
County, California, specific performance of this Agreement.  Each of
CHTL, Alvarez and the CHTL Principal Stockholder do hereby consent to the
jurisdiction of such federal court or state court of competent jurisdiction in
Los Angeles California.

    

    6.12           Westmoore
Warrants. At the Effective Time of the Merger, ASSAC shall issue to
Westmoore Partners, L.P. or its Affiliates or designees, the Westmoore
Warrants.

    

    ARTICLE
VII  - TERMINATION.

    

    7.1           Termination by the
Parties.  If the Effective Time of the Merger has not occurred
by the close of business on March 31, 2009, then any Party hereto may thereafter
terminate this Agreement by written notice to such effect, to the other Parties
hereto, without liability of or to any Party to this Agreement or any
shareholder, director, officer, employee or representative of such Party, unless
the reason for such Effective Time having not occurred is:

    
      
         

      

      
        -23-

        
          

        

      

      
         

      

    

    (a)           such
terminating Party’s willful breach of the provisions of this Agreement,
or

    

    (b)           if
all of the conditions to such terminating Party’s obligations set forth in
Article V and Article VI have been satisfied or waived in writing by the date
scheduled for the Closing, and, notwithstanding such satisfaction or waiver,
such terminating Party fails or refuses to close the transactions contemplated
by this Agreement.

    

    ARTICLE VIII
-  SURVIVAL OF REPRESENTATIONS AND WARRANTIES

    

    8.1           Notwithstanding
any right of either Party to investigate the affairs of the other party and its
Shareholders, each Party has the right to rely fully upon representations,
warranties, covenants and agreements of the other Parties contained in this
Agreement or in any document delivered to one by the other or any of their
representatives, in connection with the transactions contemplated by this
Agreement.  Notwithstanding the foregoing, all of
the representations and warranties of the Parties to this Agreement shall
terminate as at the Effective Time of the Merger.

    

    ARTICLE IX - DISPUTE
RESOLUTION; NON-COMPETITION

    

    9.1           Resolution of
Disputes.  Except as otherwise provided in Section 6.11 above,
any dispute arising under this Agreement which cannot be resolved among the
Parties shall be submitted to final and binding arbitration in accordance with
the then prevailing rules and regulations of the American Arbitration
Association (the “AAA”),
located in Los Angeles, California.  There shall be three arbitrators,
one selected by the claimant, one selected by the respondent and the third
arbitrator selected by the AAA.  The decision and award of the
arbitrators shall be final and binding upon all Parties and may be enforced in
any federal or state court of competent jurisdiction.   Service
of process on any one or more Parties in connection with any such arbitration
may be made by registered or certified mail, return receipt requested or by
email or facsimile transmission.

    

    ARTICLE X
-  MISCELLANEOUS

    

    10.1           Waivers.  The
waiver of a breach of this Agreement or the failure of any party hereto to
exercise any right under this Agreement shall in no way constitute waiver as to
future breach whether similar or dissimilar in nature or as to the exercise of
any further right under this Agreement.

    

    10.2           Amendment.  This
Agreement may be amended or modified only by an instrument of equal formality
signed by the Parties or the duly authorized representatives of the respective
Parties.

    

    10.3           Assignment.  This
Agreement is not assignable except by operation of law.

    

    
      10.4           Notice.  All
notices, requests and demands hereunder shall be in writing and delivered by
hand, by facsimile transmission, by E-Mail, by mail, by telegram, or by
recognized commercial over-night delivery service (such as Federal Express, UPS,
or DHL), and shall be deemed given: (a) if by hand delivery, upon such
delivery; (b) if by facsimile transmission, upon telephone confirmation of
receipt of same; (c) if by E-Mail, upon confirmation of receipt of same;
(d) if by mail, forty-eight (48) hours after deposit in the United States mail,
first class, registered or certified mail, postage prepaid; (e) if by
telegram, upon telephone confirmation of receipt of same; or (f) if by
recognized commercial over-night delivery service, upon such
delivery.

    

    
      
         

      

      
        -24-

        
          

        

      

      
         

      

    

     

    
      	
              If to
      ASSAC:

            	
              Asia
      Special Situation Acquisitions Corp.

            
	 
      	
              c/o M & C Corporate
      Services Limited

            
	 
      	
              P.O.
      Box 309GT, Ugland House

            
	 
      	
              South
      Church Street

            
	 
      	
              George
      Town, Grand Cayman

            
	 
      	
              Attention:  Gary
      Hirst, Esq.

            
	 
      	
              Telephone:

            
	 
      	
              Facsimile:

            
	 
      	
              E-Mail:  gary@axiat.com

            
	 
      	 
      
	
              With a copy
      to:

            	
              Stephen
      A. Weiss, Esq.

            
	 
      	
              HodgsonRuss

            
	 
      	
              1540
      Broadway, 24th Floor

            
	 
      	
              New
      York, New York  10036-4039

            
	 
      	
              Telephone:  (646)
      218-7606

            
	 
      	
              Facsimile:  (212)
      751-0928

            
	 
      	
              E-Mail:  sweiss@hodgsonruss.com

            
	 
      	 
      
	
              If CHTL or the CHTL
      Principal Shareholders:

            	
              China
      Tel Group, Inc.

            
	 
      	
              8105
      Irvine Center Drive, Suite 800

            
	 
      	
              Irvine,
      California  92618

            
	 
      	
              Attention:  George
      Alvarez

            
	 
      	
              Telephone:  (949)
      453-1775

            
	 
      	
              Facsimile:  (949)
      453-1822

            
	 
      	
              E-Mail:  galvarez@trussnet.net

            
	 
      	 
      
	
              With a copy
      to:

            	
              Lawrence
      W. Horwitz, Esq.

            
	 
      	
              HORWITZ,
      CRON & JASPER, P.L.C.

            
	 
      	
              Four
      Venture Plaza Suite 390

            
	 
      	
              Irvine,
      California  92618

            
	 
      	
              Telephone:  (949)
      450-4942

            
	 
      	
              Facsimile:  (949)
      453-8774

            
	 
      	
              E-Mail:  lhorwitz@hclaw.biz

            

    

    

    10.5           Governing
Law.  This Agreement shall be construed, and the legal
relations between the Parties determined, in accordance with the laws of the
State of New York, thereby precluding any choice of law rules which may direct
the application of the laws of any other jurisdiction.

    

    10.6           Publicity.  No
publicity release or announcement concerning this Agreement or the transactions
contemplated hereby shall be issued by either party hereto at any time from the
signing hereof without advance approval in writing of the form and substance by
the other party.

    

    10.7           Entire
Agreement.  This Agreement (including the Schedules to be
attached hereto) and the collateral agreements executed in connection with the
consummation of the transactions contemplated herein contain the entire
agreement among the Parties with respect to the transactions contemplated
hereby, and supersedes all prior agreements, written or oral, with respect
hereof., including, without limitation the Exchange Agreement and the Original
Merger Agreement.

    
      
         

      

      
        -25-

        
          

        

      

      
         

      

    

    10.8           Headings.  The
headings in this Agreement are for reference purposes only and shall not in any
way affect the meaning or interpretation of this Agreement.

    

    10.9           Severability of
Provisions.  The invalidity or unenforceability of any term,
phrase, clause, paragraph, restriction, covenant, agreement or provision of this
Agreement shall in no way affect the validity or enforcement of any other
provision or any part thereof.

    

    10.10         Counterparts.  This
Agreement may be executed in any number of counterparts, each of which when so
executed, shall constitute an original copy hereof, but all of which together
shall consider but one and the same document.

    

    10.11          Binding
Effect.  This Agreement shall be binding upon the Parties
hereto and inure to the benefit of the Parties, their respective heirs,
administrators, executors,

    successors
and assigns.

    

    10.12          Press
Releases.  The Parties will mutually agree as to the wording
and timing of any informational releases concerning this transaction prior to
and through Closing.

    

     

    [balance
of page intentionally left blank - signature page follows]

    
      
         

      

      
        -26-

        
          

        

      

      
         

      

    

    

    IN WITNESS WHEREOF, this
Agreement has been duly executed by the Parties on the date and year first above
written.

     

    
      	 
      	 
      	 
      
	
              ASIA
      SPECIAL SITUATION ACQUISITION CORP.,

              a
      Cayman Island corporation

            	 
      	
              CHINA
      TEL GROUP, INC.

              , a
      Nevada Company

            
	
              By   /s/Gary T.
      Hirst                                                                

              Signature

              Gary T.
      Hirst                                                                     
      

              Print
      Name

            	 
      	
              By   /s/George
      Alvarez                                   
                   
      

              Signature

              George
      Alvarez                        
                  
                     
      

              Print
      Name

            
	
              Its President                                                                  
      

              Print
      Title

            	 
      	
              Its CEO                            
                                    
      

              Print
      Title

            
	
              Dated August 6,
      2008                                                              

            	 
      	
              Dated August 6,
      2008                                               
      

            
	
               

              CHTL
      ACQUISITION CORP.

              a
      Nevada corporation

            	 
      	 
      
	 
      	 
      	 
      
	
              By   /s/ Gary T.
      Hirst                                                                

              Signature

              Gary T.
      Hirst                                                                     
      

              Print
      Name

            	 
      	 
      
	
              Its President                                                                 
      

              Print
      Title

            	 
      	 
      

    

    

    CHTL PRINCIPAL
SHAREHOLDERS:

    

    
      	
                                                                        
      WESTMOORE INVESTMENTS, L.P.

            
	
              /s/ Mario
      Alvarez                                                                
      

              MARIO
      ALVAREZ                                                                                                                      
      By /s/ Matt
      Jennings                                                       
      

            
	 
      
	
              ALVAREZ
      & ALVAREZ IRR
      TRUST                                                                                     
      WESTMOORE MANAGEMENT, LLC

               

              By: /s/ Mario
      Alvarez                                                                                                                    By: /s/ Matt
      Jennings                                                     
      

                      Mario
      Alvarez, Trustee

            
	
               

              WESTMOORE
      CAPITAL
      GROUP                                                                                            WESTMOORE
      CAPITAL GROUP

              SERIES
      A
      LLC                                                                                                                               SERIES
      B LLC

               

              By: /s/ Matt
      Jennings                                                                                                                    BY:
      /s/ Matt
      Jennings                                                     

               

            

    

    

    
      
         

      

      
        -27-

        
          

        

      

      
         

      

    

    SCHEDULE
A

    

    I.           As
at the Closing of the Purchase Agreement

    

    ASSAC

    

    
      	
              Authorized
      Ordinary Shares

            	
              50,000,000
      shares

            
	
              Authorized
      Preferred Shares

            	
              1,000,000
      shares

            
	 
      	 
      
	
              Issued
      Ordinary Shares

            	
              14,000,000
      shares

            
	
              Issued
      Preferred Shares

            	
              -0-

            
	
              Issued
      ASSAC Note

            	
              $165,000,000

            
	
              ASSAC
      Warrants Outstanding

            	
              17,225,000
      shares

            
	
              ASSAC
      Fully-Diluted Ordinary Shares

            	
              31,225,000
      shares

            
	 
      	 
      
	
              CHTL:

            	 
      
	 
      	 
      
	
              Authorized
      Class A Common Stock

            	
              500,000,000
      shares

            
	
              Authorized
      Class B Common Stock

            	
              200,000,000
      shares

            
	
              Authorized
      Series A Preferred Shares

            	
              25,000,000
      shares

            
	 
      	 
      
	
              Issued
      Class A Common Stock to CHTL shareholders prior to Closing

            	
              86,117,088
      shares

            
	
              Issued
      Class B Common Stock to CHTL shareholders prior to Closing

            	
              66,909,088
      shares

            
	
              Issued
      Series A Preferred Shares to Additional Investors

            	
              10,500,000
      shares (at a price of $10.00 per share)

            
	
              Maximum
      Issued Debentures

            	
              $45,000,000

            
	
              Issued
      Class A Common Stock to ASSAC for $105,000,000 cash and $165,000,000 ASSAC
      Note

            	
              120,000,000
      shares (*)

            
	
              CHTL
      Class A Common Stock issuable upon conversion of Debentures @
      $0.95/share

            	
              47,368,421
      shares

            
	
              CHTL
      Class A Common Stock issuable upon conversion of CHTL Preferred Stock
      issued to Additional Investors @ $2.25/share

            	
              46,666,667
      shares

            
	 	 
	
              CHTL
      Fully-Diluted Class A Common Stock

            	
              300,226,176
      shares

            

    

    

    _____________________________

    (*)           73,333,333
of such shares are subject to forefeiture and pledged to CHTL as collateral for
payment of $165,000,000 ASSAC Note.  As Note is prepaid, shares are
released based on one share for each $2.25 amount of Note paid down in
cash.

    

    
      
         

      

      
        -28-

        
          

        

      

      
         

      

    

    SCHEDULE
A

    

    II.           As
at the Effective Time of the Merger

    

    ASSAC

    

    
      	
              Authorized
      Ordinary Shares

            	
              250,000,000
      shares

            
	
              Authorized
      Preferred Shares

            	
              25,000,000
      shares

            
	 
      	 
      
	
              Issued
      Ordinary Shares to insiders

            	
              2,500,000
      shares

            
	
              Issued
      Ordinary Shares to Public Investors

            	
              11,500,000
      shares

            
	
              ASSAC
      Warrants Outstanding

            	
              17,225,000
      shares

            
	
              Issued
      Ordinary Shares to Holders of CHTL Class A Common Stock (other than
      ASSAC)

            	
              19,376,345
      shares (1)

            
	
              ASSAC
      Debentures

            	
              $45,000,000

            
	
              ASSAC
      Ordinary Shares issuable to holders of ASSAC Debentures

            	
              10,657,895
      shares (2)

            
	
              ASSAC
      Ordinary Shares Issued to holders of CHTL Preferred Stock

            	
              10,500,000  (3)

            
	
              ASSAC
      Ordinary Shares issued to New Investors at $10.00 per
share

            	
              6,500,000
      (4)

            
	
              ASSAC
      Ordinary Shares issuable to New Investors upon exercise of ASSAC
      Warrants

            	
              3,250,000
      (4)

            
	
              Series
      A Voting Preferred Stock issued to CHTL Principal
    Stockholders

            	
              1,000,000
      (5)

            
	
              ASSAC
      Note payable to CHTL

            	
              -0-

            
	
              CHTL
      Shares formerly held by ASSAC

            	
              -0-

            
	 
      	 
      
	
              ASSAC
      Fully-Diluted Ordinary Shares

            	
              81,509,240
      shares

            

    

    

    _____________________________

    (1)           Based
on the Class A Common Stock Exchange Ratio

    

    (2)           Based
on the ASSAC Debenture Exchange Ratio.

    

    (3)           Assumes
each share of CHTL Preferred Stock is purchased at $10.00 and is convertible
into 4.4444 shares of CHTL Class A Common Stock.

    

    (4)           Assumes
that (a) a total of $65,000,000 is raised by ASSAC in one or more financings
prior to the Effective Time of the Merger, (b) all of the net proceeds of which
were paid to CHTL and used to reduce the original $165,000,000 ASSAC Note to
$100,000,000, and (c) the ASSAC securities consisted of Ordinary Shares issued
at $10.00 per share and warrants entitling the holder to purchase an additional
3,250,000 Ordinary Shares.  The terms of such proposed financing are
subject to change and the provisions of Section 5.1(n) of the
Agreement and Plan of Merger.

    

    (5)           .  Entitles
the CHTL Principal Stockholders to 100,000,000  votes (100 votes for
each share) voting together with the ASSAC Ordinary Shares on all matters
requiring ASSAC shareholder vote or approval.

    
      
         

      

      
        -29-

        
          

        

      

      
         

      

    

     

    Based
upon the foregoing, CHTL would receive aggregate financing of $270,000,000, of
which $196,000,000 would be paid to Chinacomm under the Purchase Agreement, and
the balance used for working capital.  In addition, upon exercise of
the 17,225,000 ASSAC Warrants currently outstanding, the consolidated companies
would receive up to an additional $129,187,500.

     

     

     

     

    -30-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00146-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00146-of-00352.parquet"}]]