Document:

Exhibit (10.3)

Cooperation Agreement

National Center for Audio/Visual Education of the Ministry
of Education, Tengtu Company and Legend Group

         In order to expedite the established projects on "Relief to
Disadvantaged Regions", "Contemporary Distance Learning" and "IT Education" the
National Center for Audio/Visual Education of the Ministry of Education has
thoroughly analyzed and compared various desktop operating and application
systems and has decided to use the MS Windows 98 (Chinese edition) and Office
2000 (Chinese edition) software for the above projects. The Center has also
recommended to use MS SB S4.5 as the operating system and application system for
the Server for the same projects.

         After the National Center for Audio / Visual Education has discussed
with Tengtu Beijing, and with the full support of Microsoft ( China) and Legend
Group, it has been decided to bundle Windows 98 and Office 20000 together and
offer this software package at special price to all the elementary / secondary
schools listed under the above projects. The MS SBS4.5 has also been offered to
the schools at special price. For this, the following agreement has been
reached:

         1.       This software package will be installed in the equipment and
                  systems in use at the 5,000 elementary / secondary schools
                  implemented by the National Center for Audio / Visual
                  Education.

         2.       As stipulated by the Ministry of Education, the National
                  Center for Audio / Visual Education will coordinate the
                  overall purchase of the above software product and this
                  product will be distributed to the schools under the same
                  unified name of "IT Education of the National Center for Audio
                  / Visual Education under the Ministry of Education".

         3.       Microsoft will provide full technical services and after-sales
                  services and support for the above software products.

         4.       Tengtu, Microsoft and Legend Group (authorized Microsoft
                  Training Center) will be responsible for the training of the
                  users covered by the "Relief to Disadvantaged Regions Project"
                  and related marketing undertakings.

         5.       In close cooperation with the National Center for Audio /
                  Visual Education, Tengtu will provide approved application
                  system products for campus network, digital classroom and
                  distance learning to those users who are now undergoing
                  IT-based construction.

                                      -1-
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TengtuLegendAgreement                                                     Pg.1

         6.       Under the leadership of the National Center for Audio / Visual
                  Education, Tengtu Beijing will participate in the R & D for
                  the various application items for elementary / secondary
                  schools in order to provide them with suitable teaching
                  application products.

National Center for             Tengtu Culture & Education            Legend
Audio / Visual Education,       Electronics Development Co. Ltd.       Group
Ministry of Education

Official Seal                   Official Seal                     Official Seal

Signature                       Signature                         Signature

Date                            Date                              Date

TengtuLegendAgreement                                                     Pg. 2

<PAGE>Exhibit (10.4)

QWAI ZHOU NORMAL UNIVERSITY ATTACHED HIGH SCHOOL
THOUSAND MEGA CAMPUS NETWORK SYSTEM CONTRACT

Party A  :  Qwai Zhou Normal University Attached High School
Party B  :  Qwai Zhou Qin Hwa Yuen Information Technology Development Co. Ltd.
Party C  :  Tengtu Culture & Education Electronics Development Co. Ltd.
Contract Number : 200009-001
Date of signing of Contract : July 28, 2000

1.       Responsibilities of Parties A, B, and C

         1.1      Responsibilities of Party A
                  (1)   Make payments to Parties B and C in time according to
                        the payment methods stipulated in this contract ;
                  (2)   Provide equipment installation and testing site ;
                  (3)   Responsible for taking delivery and inventory of goods
                        while Party B will take care their custody ;
                  (4)   Coordinate with Parties B and C, and relevant companies
                        and departments.
         1.2      Responsibilities of Party B
                  (1)   Comprehensive PDS cable installation ( including cable
                        conduits );
                  (2)   Installation and testing of equipment for the Network
                        Administration Center;
                  (3)   Project implementation and system testing ( hardware ) ;
                  (4)   Guarantees the time frame for the overall progress of
                        the project ;
                  (5)   Provides complete technical documentation to Party A ;
                  (6)   Coordinates commissioning.

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QwaiZhouNormalHigh                                                         Pg. 1

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         1.3      Responsibilities of Party C
                  (1)   Installation and testing of Server System Platform
                        Software ;
                  (2)   Installation and testing of Information-Based Education
                        Application Platform Software ;
                  (3)   Setting up of technical enquiry telephone line for
                        resolving problems encountered by Party A and submit an
                        overview of the problems to the same Party ;
                  (4)   To provide Party A with the latest technical materials,
                        upgrading schemes for the Tengtu Campus Network
                        Application Platform, etc. through post, e- mail or
                        website ;
                  (5)   To provide 1-year free service for Tengtu Campus
                        Application Platform products, and 3-month free service
                        for the Tengtu Campus Network System Platform (
                        Microsoft products ) ;
                  (6)   Responsible for liaison for Party A to undertake
                        training at the training base jointly established by
                        Part A and Microsoft.
2.       Project Cost
         2.1      Total payment to Parties B and C : RMB 1,320,000
         2.2      Hardware cost : RMB 1,150,000
         2.3      Software cost : RMB 170,000

3.       Methods of Payment
         3.1      Upon delivery of network cables to the work site, Party A will
                  pay 30% of the hardware contract price to Party B, i.e., RMB
                  345,000 ;
         3.2      Upon delivery of software products to the School, Party A will
                  pay 30% of the software contract price to Party C, i.e., RMB
                  51,000 ;
         3.3      After the hardware for this contract has passed the initial
                  inspection performed by Party A, Party A will pay 30% of the
                  hardware contract price to Party B within 15 days, i.e., RMB
                  345,000 ;
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QwaiZhouNormalHigh                                                        Pg. 2

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         3.4      After the contract items undertaken by Party B have passed the
                  commissioning performed by Party A, party A will pay Party B
                  30 % of the contract price, i.e., RMB 345,000 ;
         3.5      After the System and application software provided by Party C
                  have passed the commissioning, Party A will pay 70 % of the
                  software contract price to Party C, i.e., RMB 119,000 ;
         3.6      After the contract items undertaken by Party B have performed
                  normally in the System for 12 months, Party A will pay 10 % of
                  the hardware contract price to Party B, i.e., RMB 115,000.

4.       Project Period
         The entire project is to be completed within 60 working days from the
date the contract is signed. On completion of the project, the System will be
put into operation for 1 month. Party B shall produce a "Project Cycle Plan"
based on their own relevant project tasks and inform Party A formally within 7
days after the contract has been signed.

5.       Quality Assurance
         Party B shall guarantee that the quality of this project must fully
satisfy the requirements specified in the written suggestions provided to Party
A. Party B guarantees that all the equipment and hardware as provided are brand
new and OEM products, without any used or refurbished items.
Party C will guarantee that all software products as provided are authentic
copies from the software manufacturer(s), with complete information and quality
assurance certificate(s).

6.       Commissioning Standards
         6.1      The quality of the project items undertaken by Party B must
                  comply with the requirements as stipulated in the proposed
                  schemes agreed by Party A ;
         6.2      The project items undertaken by Party B shall be commissioned
                  according to the following standards : (a) The technical
                  standards of OEM ;

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QwaiZhouNormalHigh                                                         Pg. 3

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         (b)      The schemes provided by Party B abd agreed by Party A ; 6.3
                  Commissioning of the project items undertaken by Party B shall
                  be performed according to the following methods :
         a)       Visually inspect the external appearance, packaging, product
                  names, models and quantity of the products ;
         b)       Running and testing of the whole system.
         6.4      Commissioning shall be divided into Initial Commissioning and
                  System Running Commissioning : Party A shall perform initial
                  commissioning according to item 6.3.a above before the System
                  is installed. Running commissioning will proceed upon
                  completion of System installation . When System Running is
                  successful, Parties B and C will provide complete installation
                  and testing documentation to Party A.
         6.3      Commissioning tasks shall be organized by Part A, and parties
                  B and C shall coordinate.

7.       Infringement of Contract and Compensation
         7.1      Infringement Responsibilities of Party B
                  a)       If Party B cannot complete the project according to
                           the contract, there will be a penalty for every 10
                           days of delay, which will be equivalent to 1% of the
                           total contract amount.
                  b)       If Party B implements the project not according to
                           Party A's requirements, or uses substitution-products
                           without consulting Party A, Party A has the right to
                           terminate the contract and refuse to make any
                           payment.
         7.2      Infringement Responsibilities of Party A
                  If Party A does not make payments for the loan according to
                  the methods of payment and timescale stipulated in the
                  contract, Party A shall pay Party B an "infringement fund",
                  which is 5% of the overdue payment, for each day delayed;
                  starting from the expiration of the 7-day period after the
                  date when the payment shall be made.

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QwaiZhouNormalHigh                                                         Pg. 4

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         7.3      If any Party is unable to implement the contract after it is
                  in effect due to incidents caused by fire, flooding,
                  earthquake, war, other mutually agreed irresistible events,
                  etc., the deadline for the implementation of this contract can
                  be extended. Depending on the actual situation, infringement
                  responsibilities can partially or fully be exempted.

8.       Warranty Period
         Party B shall provide a 36-month warranty for the project items
undertaken by itself, commencing from the date when installation of all
equipment is completed. The manufacturer shall directly issue a quality
assurance certificate, valid for 15 years, for the comprehensive cable
installation to the user.

         8.1      Party B shall provide a 36-month quality warranty for the
                  projects it supplies, commencing from the date when the
                  equipment has passed the commissioning ;
         8.2      During the warranty period, Party A shall allocate qualified
                  personnel to operate and service the equipment according to
                  the maintenance handbooks;
         8.3      During the maintenance period, Party B will not be responsible
                  to maintain any faulty hardware or software if they are
                  changed by Party A. Party B will replace or repair any damaged
                  equipment or subassemblies caused by improper maintenance by
                  Party A and all costs incurred shall be born by Party A. If
                  the System's performance cannot meet the technical
                  specifications stipulated in the contract due to deficiencies
                  in the hardware, software or materials supplied by Party B; or
                  faults committed by Party B's technicians, Party B shall
                  repair or replace all the faulty equipment or materials free
                  of charge;
         8.4      During the warranty period, Party A shall inform Party B in
                  time if there is any equipment fault and the latter Party
                  shall perform the necessary repair or replacement as soon as
                  possible. All costs incurred shall be born by the responsible
                  party;
         8.5      During the warranty period, Party B guarantees to provide
                  Party A with continuous maintenance and replacement. Party A
                  will be responsible for all costs incurred;

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QwaiZhouNormalHigh                                                         Pg. 5

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         8.6      During the warranty period, Party B will be responsible to
                  repair any damaged equipment caused by fire, flooding,
                  electromagnetism, thunder, etc.. All costs incurred will be
                  born by Party A.

9.       Other Matters
         Any subsequent arising matters not identified in this contract shall be
         resolved by Parties A, B and C. If consensus cannot be reached after
         consultation, they can be resolved by relevant arbitration authorities.

Party A : Qwai Zhou Normal University Attached High School
Authorized Representative Signature :
July 28, 2000

Party B : Qwai Zhou Qin Hwa Yuen Information Technology Development Co. Ltd.
Authorized Representative Signature :
July 28, 2000

Party C : Tengtu Culture & Education Electronics Development Co. Ltd.
Authorized Representative Signature :
July 28, 2000

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QwaiZhouNormalHigh                                                        Pg. 6

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