<PAGE>

                                                                    EXHIBIT 10.7

CONFIDENTIAL TREATMENT REQUESTED BY NINETOWNS DIGITAL WORLD TRADE HOLDINGS
LIMITED. THIS EXHIBIT HAS BEEN REDACTED. REDACTED MATERIAL IS MARKED WITH "*"
AND HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION

                              DATED MARCH 31, 2004

                          NINETOWNS DIGITAL WORLD TRADE
                                HOLDINGS LIMITED

                                       AND

                                 ERIC CHEN-YU HO

                              ---------------------

                                SERVICE AGREEMENT

                              ---------------------

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CONFIDENTIAL TREATMENT HAS BEEN REQUESTED AND CONFIDENTIAL TERMS HAVE BEEN
OMITTED

AN AGREEMENT made on March 31, 2004

BETWEEN

(1)   NINETOWNS DIGITAL WORLD TRADE HOLDINGS LIMITED, a company established
      under the laws of the Cayman Islands with limited liability and having its
      registered office at Century Yard, Cricket Square, Hutchins Drive, P.O.
      Box 2681 GT, George Town, Grand Cayman, British West Indies, and
      registered as an overseas company in Hong Kong having its principal place
      of business in Hong Kong at Units 2502-3 Worldwide House, 19 Des Voeux
      Road Central, Hong Kong ("COMPANY"); and

(2)   ERIC CHEN-YU HO (holder of Taiwan Passport Number ********* of Taiwan
      Passport) ("EMPLOYEE").

IT IS AGREED as follows:

1.    INTERPRETATION

1.1   In this Agreement the following expressions shall have the following
      meanings, except where the context otherwise requires:

      "ASSOCIATED COMPANY"    means any company which is:

                              (a) a company having an ordinary share capital
                                  of which not less than twenty percent (20%) is
                                  owned directly or indirectly by the Company;

                              (b) a holding company of the Company or a
                                  subsidiary of any such holding company; or

                              (c) a company to which the Company or any of
                                  its subsidiaries (as defined in the Companies
                                  Ordinance, Cap.32) renders managerial,
                                  administrative or technical services in the
                                  ordinary course of its business;

      "BOARD OF DIRECTORS"    means the directors for the time being of the
                              Company including any duly appointed committee of
                              such directors;

      "CALENDAR YEAR"         means each period commencing on 1 January and
                              ending on 31 December, inclusive;

      "CONFIDENTIAL           means:
      INFORMATION"

                              (a) trade secrets or other confidential
                                  information of the Company, including in
                                  particular lists or details of customers and
                                  clients of the Company or any Associated
                                  Company and/or

                              (b) the proprietary information (including any
                                  Intellectual Property and/or Information
                                  Technology owned or licensed by a Group
                                  Company), observations and data obtained by
                                  the Employee whilst employed by the Company
                                  concerning the organization, business,
                                  technology, finance, transactions or affairs
                                  of the Company or any Associated Company;

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      "FINANCIAL YEAR"         means any year or other period for which accounts
                               of the Company are made up and audited;

      "GROUP"                  means the Company and all its Associated
                               Companies;

      "GROUP COMPANY"          means any company within the Group, including the
                               Company;

      "HONG KONG"              means the Hong Kong Special Administrative Region
                               of the People's Republic of China;

      "INFORMATION             means computer hardware, software, networks
      TECHNOLOGY"              and/or other information technology and any
                               aspect or asset of a business which relies on
                               computer hardware, software, networks and/or
                               other information technology (including, without
                               limitation, development, security, disaster
                               recovery, EDI, source code escrow, computer
                               bureau services, maintenance and support,
                               facilities management, website, domain name and
                               outsourcing agreements) whether embedded or
                               otherwise;

      "INTELLECTUAL            means trade marks, service marks, trade or
      PROPERTY"                business names or signs, logos, get-up,  patents,
                               inventions, registered and unregistered design
                               rights, copyrights (including rights in computer
                               software), semi-conductor topography rights,
                               database rights and all similar proprietary
                               rights which may subsist in any part of the
                               world (including know-how) including, where
                               such rights are obtained or enhanced by
                               registration, any registration of such rights
                               and applications and rights to apply for such
                               registrations;

      "INVENTION"              means any discovery, technique, design, formula,
                               method of manufacture, invention, secret process
                               or improvement in procedure, whether patentable
                               or not;

      "PRC"                    means the People's Republic of China;

      "TERM"                   means such period as will expire on the earlier
                               of either:

                               (a) four years from the date when this
                                   Agreement commences; or

                               (b) such date where the Agreement is lawfully
                                   and validly terminated under the terms of
                                   this Agreement.

1.2   References to Clauses are references to clauses or sub-clauses of this
      Agreement.

1.3   Headings are for ease of reference only and do not form part of this
      Agreement.

1.4   References to (or to any specific provision of) this Agreement or any
      other document shall be construed as references to this Agreement, that
      provision or that other document as amended, varied, modified or
      supplemented from time to time.

1.5   Reference to a Schedule is to a schedule of this Agreement unless
      otherwise stated. Schedules form part of this Agreement.

1.6   Reference to the neuter gender shall include the masculine and feminine
      and vice versa, and references to the singular number shall include the
      plural and vice versa.

2.    APPOINTMENT

2.1   The Company hereby agrees to employ the Employee, and the Employee hereby
      agrees to act, as the general manager of the strategic planning department
      and chief strategy officer of the Company or in such other office or
      offices as the Company may from time to time direct in

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<PAGE>

      accordance with the terms and conditions hereof.

2.2   The Employee accepts that the Company may, at its discretion, require him
      to perform other duties or tasks not within the scope of his normal duties
      hereunder and the Employee shall perform those duties and/or undertake
      those tasks as if they were specifically required under this Agreement.

3.    TERM

      The Term shall commence on the date hereof and shall continue until the
      expiry of the Term or until earlier terminated by either party giving to
      the other written notice in accordance with CLAUSE 10.

4.    DUTIES

4.1   The Employee shall, during the Term:

      4.5.1 responsible for the research and development of the Company's
            products;

      4.5.2 devote the whole of his time, attention and skill to the duties of
            his office;

      4.5.3 faithfully and diligently perform such duties and exercise such
            powers as may from time to time be assigned to or vested in him;

      4.5.4 obey all reasonable and lawful instructions and directions given to
            him by or under the authority of the Board of Directors;

      4.5.5 act at all times in a civil manner and shall be punctual, sober,
            conscientious and loyal in carrying out his duties; and

      4.5.6 generally, do all things possible to promote, develop and extend the
            business and interests of the Company and its Associated Companies
            and the Group.

4.2   The Employee may be required in pursuance of his duties hereunder to
      perform services not only for the Company but also for any of its
      Associated Companies and without further remuneration (except as otherwise
      agreed) to accept such offices in such of its Associated Companies as the
      Company may from time to time reasonably require.

4.3   The Employee hereby agrees that the Company shall be entitled from time to
      time, without any further consent from the Employee, to second the
      Employee to the employment of any Associated Company of the Company
      without prejudice to the rights of the Employee under this Agreement and
      that the Company shall be at liberty from time to time to appoint any
      other person or persons to act jointly with the Employee whether in such
      secondment or in his normal duties hereunder or otherwise.

4.4   The Employee shall not during the Term (except as a representative of the
      Company or with the prior consent in writing of the Board of Directors):

      4.4.1 be directly or indirectly engaged or concerned in the conduct of any
            business, whether or not such business is competing in any material
            respect with the business for the time being of the Company or of
            any of its Associated Companies; or

      4.4.2 be directly or indirectly interested in any such business save
            through his holding or being interested in investments (quoted or
            unquoted) representing not more than five percent (5%) of the issued
            investments of any class of any one such company.

4.5   The Employee shall not and shall not permit any member of his family to,
      demand, receive or obtain directly or indirectly:

      4.5.1 any discount, rebate or commission in respect of any sale and
            purchase of goods effected or other business transacted (whether or
            not by him) by or on behalf of any Group Companies; or

      4.5.2 from any third party, any gifts, benefits or advantages offered or
            given to the Employee

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<PAGE>

            or any member of his family, as the case may be, by reason of his
            employment with the Company,

      and if he or a member of his family (or any firm or company in which he or
      a member of his family is interested) obtains any such discount, rebate
      commission, gift, benefit or advantage, the Employee shall (in addition to
      the other rights of the Company hereunder in respect thereof) account to
      the Company for the amount or value received.

5.    CONFIDENTIALITY

5.1   The Employee acknowledges that:

      5.1.1 he has been advised by the Company that it would not have entered
            into this Agreement unless assured of the confidentiality covenants
            contained in this CLAUSE 5 which, the Employee acknowledges, are
            essential to protect the business and goodwill of the Company; and

      5.1.2 the Confidential Information is the property of the Company or such
            Associated Company.

5.2   The Employee agrees that he shall not disclose, divulge or communicate to
      any unauthorized person or use for his own account, or through any failure
      to exercise all due care and diligence cause any unauthorised disclosure
      of, any Confidential Information unless and to the extent that the
      Employee may, after giving prior notice to the Company to the extent
      practicable under the circumstances and subject to any practicable
      arrangements to protect confidentiality, disclose such matters to the
      extent required by applicable laws or governmental regulations or judicial
      or regulatory process or in connection with any judicial process or
      arbitration regarding any legal action, suit or proceeding arising out of
      or relating to this Agreement or the business of the Company or any
      Associated Company.

5.3   The provisions of this CLAUSE 5 shall apply mutatis mutandis in relation
      to each of the Associated Companies, to trade secrets or confidential
      information which the Employee may have received or obtained while in the
      service of the Company, and the Employee shall further, upon the request
      of any such company, enter into a separate agreement or undertaking with
      such Associated Company to the like effect.

5.4   The Employee acknowledges that the terms of this Agreement (and any
      amendments or variations thereof) are confidential in nature and agrees
      that he shall not disclose or use the terms of this Agreement or any part
      thereof for any purpose which may adversely affect the business of the
      Company.

6.    REMUNERATION

6.1   The Company shall pay to the Employee during the continuance of his
      employment hereunder a salary at the rate specified in SCHEDULE 1 (or such
      higher rate as may, from time to time, be agreed in accordance with CLAUSE
      15.7). In the event of any increase of basic salary being so agreed or
      notified, the increase shall thereafter have effect as if it were
      specifically provided for as a term of this Agreement. Such basic salary
      shall be inclusive of all sums receivable by the Employee from the Company
      or any of its Associated Companies, excluding benefits outlined in CLAUSE
      6.2. The basic salary shall be payable in arrears on the last working day
      of each month.

6.2   The Employee shall also be entitled to the benefits set out in SCHEDULE 2,
      which may, from time to time, be varied in accordance with CLAUSE 15.7.

6.3   The Employee's total compensation (as set out in CLAUSE 6.1 and CLAUSE
      6.2) may be reviewed by the Board of Directors at the end of each
      financial year. Any change of the Employee's compensation shall, from time
      to time, be agreed in accordance with CLAUSE 15.7.

6.4   So far as is permitted by law, the Company shall be entitled at any time
      to deduct from the Employee's remuneration hereunder any monies due from
      him to the Company including, but

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<PAGE>

      not limited to, any outstanding loans, advances, the cost of repairing any
      damage to or loss of the Company's property caused by him (and of
      recovering the same) and any other monies owed by him to the Company.

6.5   The Company shall, against production of receipts and vouchers if
      requested, reimburse the Employee all necessary and reasonable expenses
      (including travel, hotel, entertainment and other out-of-pocket expenses):

      6.5.1 up to but not exceeding HK$1,000 (or equivalent if in foreign
            currency); or

      6.5.2 exceeding HK$1,000 (or equivalent if in foreign currency), incurred
            with the Company's prior consent if such expenses,

      properly incurred in the performance of his duties pursuant to this
      Agreement.

6.6   For the avoidance of doubt, the Employee shall be solely responsible for
      the due and prompt payment of all taxes that he may be held liable in Hong
      Kong or elsewhere, non-exclusively including, but not limited to, salaries
      tax based on his income under this Agreement.

7.    PLACE OF WORK

      The Employee shall perform his duties at the office of the Company in Hong
      Kong, or such other place of business of the Company as the Company may,
      in its absolute discretion, from time to time, require the Employee to
      work.

8.    WORKING HOURS AND HOLIDAYS

8.1   The Employee shall personally attend to the business and interests of the
      Company during the normal working hours of the Company as determined by
      the Company from time to time, and during such other times as the Company
      may reasonably require for the Employee to carry out his duties faithfully
      and diligently except in case of incapacity through illness or accident.

8.2   The Employee shall be entitled to annual leave as specified in SCHEDULE 3
      in each Calendar Year ("ANNUAL LEAVE"). Annual Leave will be allowed and
      shall be taken in accordance with the provisions hereof following written
      requests therefor by the Employee.

8.3   The Employee shall abide by such rules and policies as the Company may,
      from time to time, implement and notify to the Employee in regards to the
      Employee's attendance at the office of the Company during periods of
      extreme weather conditions in Hong Kong, including the hoisting of
      rainstorm and typhoon warnings by the Hong Kong Observatory.

9.    INVENTIONS

9.1   The Employee acknowledges that the nature of his duties, and the
      particular responsibilities arising therefrom, are such that he has a
      special obligation within the meaning of S57 of the Patents Ordinance, Cap
      514 to further the interest of the Company's undertakings. Accordingly,
      any Invention made or discovered by the Employee or jointly with others,
      wholly or substantially in the course of the Employee's normal duties or
      of duties specifically assigned to the Employee, or in the course of
      duties falling outside his normal duties, but specifically assigned to the
      Employee, must immediately be disclosed to the Company and all rights in
      such Inventions shall be and become the absolute property of the Company
      and shall not be disclosed to any other person or entity without the
      consent of the Company being previously obtained, which, if given, may be
      subject to conditions.

9.2   The Employee shall whenever requested to do so (whether during or after
      the termination of this Agreement) promptly disclose and deliver to the
      Company all information and data in the Employee's possession, necessary
      to enable the Company to have a full understanding of the Invention. The
      Employee agrees to execute all documents and to do all things that may, in
      the opinion of the Company, be necessary to enable the Company or its
      nominees to obtain patent, design, or other intellectual property
      protection of the Invention in Hong Kong or any

                                       5
<PAGE>

      other part of the world. The Employee also agrees to vest such patent,
      design or other intellectual property protection, when obtained, and all
      right and title to and interest in the same in the Company or its nominees
      absolutely and as sole beneficial owner.

9.3   The Employee hereby irrevocably appoints the Company to be the Employee's
      attorney in his name and on his behalf to execute and do any such acts,
      matters, documents or things as mentioned above and generally to use his
      name for the purpose of giving to the Company (or its nominees) the full
      benefit of the provisions of this CLAUSE 9, in favour of any third party.
      A certificate in writing signed by the Employee or the Company that any
      instrument or act falls within the authority conferred upon the Company by
      this CLAUSE 9.3 shall be conclusive evidence that such is the case.

9.4   The Company shall be under no obligation to apply for or to seek to obtain
      patent, design or other intellectual property protection in relation to
      any such Invention or in any way to use, exploit or seek to benefit from
      such Inventions.

9.5   The provisions of this CLAUSE 9 shall not be read or construed as
      purporting to exclude or limit the operation of S60 of the Patents
      Ordinance, Cap 514 (as the same may be amended from time to time).

9.6   The Employee agrees to give the Company not less than thirty (30) days'
      prior notice in writing of any application proposed to be made by the
      Employee or on the Employee's behalf pursuant to S58 of the Patents
      Ordinance, Cap 514 (as the same may be amended from time to time) for
      compensation in respect of any such Invention for which a patent has been
      granted.

9.8   The copyright and all rights in the nature of copyright to any work
      created by the Employee during his employment, including but not limited
      to written works, computer programs, designs, trade marks (whether or not
      in conjunction with another party) in connection with, affecting or
      otherwise related to the business of the Company or an Associated Company
      shall belong to the Company, which shall among other things have the full
      right to use, transfer and/or alter any such work. The Employee waives his
      right, or agrees not to enforce, any moral or other intellectual property
      rights which the Employee may have in such works. The Employee will not
      infringe any rights in such works and will notify the Company immediately
      of any circumstances where such rights may have been infringed.

9.9   Any trade mark, design or copyright to works created by the Employee
      during his employment (and whether or not in conjunction with a third
      party) in connection with, affecting or relating to the business of the
      Company or Associated Companies or capable of being used or adapted for
      use in the Company or Associated Companies, must immediately be disclosed
      to the Company.

9.10  The Employee further agrees to waive any right to compensation in respect
      of any such work which is exploited by the Company or by someone else with
      the Company's permission in a way that could not reasonably have been
      contemplated by the Company and the Employee at the time of making the
      work.

9.11  The Employee agrees that he will, at the Company's expense and upon
      request (whether during or after the termination of the employment)
      execute such documents as may be necessary to implement the provisions of
      this CLAUSE 9 and vest all rights, title and interest in such property in
      the Company.

9.12  The Employee shall not, except as provided in this CLAUSE 9 or as may be
      necessary in the course of his employment, disclose or make use of any
      Invention which is the property of the Company.

9.13  Rights and obligations under this CLAUSE 9 shall continue in force after
      the termination of the Agreement in respect of Inventions made during the
      Employee's employment hereunder and shall be binding upon the
      representatives of the Employee.

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10.   TERMINATION

10.1  The employment of the Employee under this Agreement may be terminated only
      by the Company summarily and without notice (or payment in lieu of notice)
      if the Employee:

      10.1.1 is guilty of gross negligence or wilful misconduct in relation to
             her employment with the Company;

      10.1.2 is guilty of any grave misconduct which in the opinion of the
             Company is detrimental to the interests or reputation of the
             Company;

      10.1.3 is convicted of any criminal offence involving her integrity or
             honesty,

      10.1.4 becomes an undischarged bankrupt; or

      10.1.5 refuses to carry out any decision of the Board or any reasonable
             and lawful order given to him by the Board of Directors in the
             course of his appointment or fails diligently to attend to his
             duties

      and will automatically terminate in the event of the death of the
      Employee, in which event the employment of the Employee and all salary,
      benefits, allowances, commissions and entitlements payable under this
      Agreement, or otherwise, shall cease from the date of termination or
      payment in lieu of notice as applicable.

10.2  If the employment of the Employee is terminated pursuant to CLAUSE 10.1,
      the Company shall not be liable to pay to the Employee any salary,
      benefits, allowances, commissions and entitlements in respect of any
      period after the date of termination.

10.3  Notwithstanding how the employment of the Employee is terminated the
      Company shall not be liable to pay to the Employee any compensation or
      similar payment in respect of such termination.

11.   EFFECTS OF TERMINATION

11.1  On the termination of this Agreement, howsoever arising, the Employee
      shall:

      11.1.1 deliver to the Company all documents (including Confidential
             Information, correspondence, notes, memoranda, plans, drawings,
             records, reports, computer disks, software and other documents and
             data of whatsoever nature) made or compiled by or delivered to the
             Employee during his employment hereunder and concerning the
             business, finances or affairs of any Group Company. For the
             avoidance of doubt it is hereby declared that the property in all
             such documents as aforesaid shall at all times belong in the
             Company; and

      11.1.2 at the Company's request, and without compensation or other
             payment, resign from all appointments or offices which he holds as
             nominee or representative of the Company and if he should fail to
             do so within seven days of such request the Company is irrevocably
             authorised to appoint some person in his name and on his behalf to
             sign any documents or do any things necessary or requisite to give
             effect to such resignation(s). Such resignation(s) shall be without
             prejudice to any claims which the Employee may have against the
             Company arising out of this Agreement or its termination.

11.2  This CLAUSE 11 shall survive the termination of this Agreement howsoever
      arising.

12.   NON-SOLICITATION

12.1  The Employee covenants with the Company that he will not for the period of
      12 months after ceasing to be employed under this Agreement in connection
      with the carrying on of any business in competition with the business of
      the Company then being carried on, either on his own behalf or on behalf
      of any person firm or company directly or indirectly:

      12.1.1 seek to procure orders from or do business with any person firm or
             company who has

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<PAGE>

             at any time done business with the Company or any of the Associated
             Companies during the 12 months immediately preceding the date the
             Employee ceased employment with the Company; or

      12.1.2 endeavour to entice away from the Company any person who has at any
             time been employed or engaged by the Company any of the Associated
             Companies during the 12 months immediately preceding the date the
             Employee ceased employment with the Company, provided that nothing
             in this CLAUSE 12 shall prohibit the seeking or procuring of orders
             or the doing of business not relating or similar to the business of
             the Company then being carried on.

13.   NON-COMPETITION

13.1  The Employee covenants with the Company that he will not within the PRC
      (which shall include Hong Kong and the Macao SAR) and Taiwan, Republic of
      China and for the period of 12 months after ceasing to be employed under
      this Agreement either alone or jointly with or as manager agent consultant
      or employee of any person firm or company directly or indirectly carry on
      or be engaged in any activity or business which shall be in competition
      with the Business.

14.   NOTICES

14.1  Any notice to be given by a party under this Agreement must be in writing
      and must be given by delivery at or sending registered post or other
      faster postal service, or facsimile transmission or other means of
      telecommunication in permanent written form (provided the addressee has
      his or its own facilities for receiving such transmissions) to (in the
      case of the Company) its registered office for the time being and (in the
      case of the Employee) his last known address or relevant
      telecommunications number of the other party.

14.2  Where notice is given by sending in a prescribed manner it shall be deemed
      to have been received when, in the ordinary course of the means of
      transmission, it would be received by the addressee. To prove the giving
      of a notice it shall be sufficient to show it was dispatched. A notice
      shall have effect from the sooner of its actual or deemed receipt by the
      addressee.

15.   GENERAL

15.1  This Agreement is in substitution for all previous contracts of service
      between the Company and the Employee which shall be deemed to have been
      terminated by mutual consent as from the date on which this Agreement
      commences.

15.2  This Agreement constitutes the entire agreement amongst the parties hereto
      and supersedes any previous agreements or arrangements (written or oral)
      between them relating to the subject matter hereof. Each of the parties
      hereto acknowledges that it is not relying on any statements, warranties
      or representations given or made by the other party relating to the
      subject matter hereof, save as expressly set out in this Agreement.

15.3  No failure or delay by any party in exercising any right, power or remedy
      under this Agreement shall operate as a waiver thereof, nor shall any
      single or partial exercise of the same preclude any further exercise
      thereof or the exercise of any other right, power or remedy. Without
      limiting the foregoing, no waiver by any party of any breach of any
      provision hereof shall be deemed to be a waiver of any subsequent breach
      of that or any other provision hereof. If at any time any provision of
      this Agreement is or becomes illegal, invalid or unenforceable in any
      respect, the legality, validity and enforceability of the remaining
      provisions of this Agreement shall not be affected or impaired thereby.
      The rights and remedies provided in this Agreement are cumulative and not
      exclusive of any rights or remedies otherwise provided by law.

15.4  If any provision or part of a provision of this Agreement shall be, or be
      found by any authority or court of competent jurisdiction to be, illegal,
      invalid or unenforceable, such

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<PAGE>

      illegality, invalidity or unenforceability shall not affect the other
      provisions or parts of such provisions of this Agreement, all of which
      shall remain in full force and effect.

15.5  While CLAUSE 12 and CLAUSE 13 are considered by the parties to be
      reasonable in all the circumstances, it is agreed that if such clauses as
      a whole are adjudged to go beyond what is reasonable for the protection of
      the confidential information and other legitimate investment interests of
      the Company or any Associated Company, and to be unenforceable, but would
      be adjudged reasonable if any part or parts thereof were deleted, such
      clauses shall apply as if such unreasonable part or parts had been
      deleted.

15.6  The parties agree that a construction of this Agreement that results in
      all provisions being enforceable is to be preferred to a construction that
      does not so result.

15.7  This Agreement may not be modified or varied except by an instrument in
      writing signed by both of the parties hereto or their duly authorized
      representative.

15.8  This Agreement shall be governed by and construed in accordance with the
      laws of Hong Kong. The parties irrevocably agree that the courts of Hong
      Kong have non-exclusive jurisdiction to settle any dispute or claim that
      arises out of or in connection with this Agreement.

                                   SCHEDULE 1

Basic Salary:  HK$660,000 per annum

                                   SCHEDULE 2

Discretionary Bonus

The Employee shall be eligible to receive a discretionary annual bonus. Payment
of such bonus and the amount (if any) thereof shall be at the entire discretion
of the Company determined by them using such criteria as they consider
appropriate, including, but not limited to, whether the Company has made audited
profits after tax and minority interest but before extraordinary items of over
HK$100 million, the performance of the Group and of the Employee during the
period in question, provided always that such bonus (if any) shall not exceed 1%
of such profits.

Retirement Scheme

The Employee shall have the benefit of participation in the mandatory provident
fund scheme provided by the Company subject to the terms and conditions of such
scheme from time to time in force, and the mandatory payments by the Company
shall not exceed the statutory minimum.

                                   SCHEDULE 3

                                  ANNUAL LEAVE

In addition to statutory holidays, the Employee shall be entitled after
completion of each year of service to 14 working days (including Saturdays) of
Annual Leave, which Annual Leave shall be taken at such time or times as may be
convenient to the Company having regard to the exigencies of the Company's
business, provided that:

1.    if the employment of the Employee hereunder is to cease on the completion
      of any year of service, the Employee shall be entitled to take the Annual
      Leave immediately prior to the end of such year of service,
      notwithstanding that at that time such year of service shall not have been
      completed;

2.    if the Employee has taken more Annual Leave during the final year of
      employment than has accrued by the termination of this Agreement, the
      Employees hereby consents to the Company deducting from his final salary
      payment an amount equivalent to such excess

                                       9
<PAGE>

      Annual Leave taken but not accrued, or paying to the Company such amount
      if the final salary payment is insufficient for such purpose;

3.    if for any reason the Employee shall not have taken his full entitlement
      of Annual Leave in any one year he shall not have any claim against the
      Company in respect thereof nor, unless the reason is the exigencies of the
      Company's business (of which the Company shall be the sole judge), shall
      he be entitled to additional Annual Leave in any year in respect of leave
      not taken in previous years.

IN WITNESS whereof this Agreement has been entered into the day and year first
before written.

SIGNED by                                       )  Ninetowns Digital World Trade
for and on behalf of                            )  Holdings Limited
NINETOWNS DIGITAL WORLD                         )  /s/ Wang Shuang
TRADE HOLDINGS LIMITED                          )  -----------------------------

SIGNED by                                       )  /s/ Eric Chen-Yu Ho
ERIC CHEN-YU HO                                 )  -----------------------------

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