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EXHIBIT 10.1




APPENDIX A




China Credit Bureau

International Credit File Format

Service Vendor




Project Proposal

March 14, 2005




Summary







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Nowadays, it is important for an individual and/or business to have a good credit history if it
wants to grow. It is also important for banks and lenders to obtain extensive history information
on applicant(s), in order to make the right decision on each received application.



In highly developed countries, banks and lenders tend to inquire as to an individual’s or company’s
credit reference on each received application from more than one independent credit agency, in
order to have a subjective review and analysis for decision making. Therefore, these credit
agencies play a very important role between the applicant and lenders. In the US, there are
several major independent credit agencies, (“D&B”-Commercial Credit Information; Experian, Equifax
and Trans-Union-Consumer Credit Files). These major US agencies have established internationally
recognized credit rating standards and services through the years of their business development.
They have stored, packaged and provided credit files to their clients at an average fee of US
$1.00/per transaction each year up to a billion transactions, they have turned this service into a
multi-billion dollar business. In China, there is still not a unified credit rating standard as
well as independent, internationally recognized professional credit reference agency. Over the
last few years, Chinese banks and lenders have given lending facilities based on relationships,
government policy, or credit information which might not be professionally obtained and verified.
Within the last two years, millions of bank credit cards have been delivered to the consumers with
such consumer credit based on all kinds of “proof of salary” issued by the employers, which has
created a great deal of risk, potential debt, and/or bad loans for both the financial institution
and individuals.



This irregular situation has drawn serious attention from the society and the Chinese government
has been taking tough measures to control the problem. However, in a rapidly growing market
economy, government regulation alone will not be able to fix the problem as more and more
businesses and/or individuals continuously seek credit and financing facilities. Further, as the
Chinese Government continues to adopt greater “open door” policies, foreign banks and related
financial companies will enter into the Chinese financial market this year and these incoming
foreign banks will badly need qualified credit data base information as they grow their consumer
and commercial lending into the China market. Therefore, urgent demand exists today and will
increase for internationally recognized Commercial/Consumer credit standard and rating systems.
This has opened a “window of opportunity” to someone who can lead to set up the internationally
recognized credit rating bureau and systems in China.



Asia Payment Systems (NASD OTCBB:APYM) is a company specialized in payment processing business.
The company executives have had long management experience in major international banking and/or
payment processing firms, which makes the company unique and with excellent connections both within
the international banking industry and consumer credit card market. Recently, As the company
successfully completed the System set up to handle the massive card payment







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transactions for Japan Duty Fee Shops in Japan and now in Hainan China , APYM has begun shifting
its focus to China. It is the purpose of APYM to cooperate with Strong China Credit File/Bureau
partners to jointly provide world class credit bureau services as well as the subsequent
3rd Party payment processing services to the financial industry and consumers in China
and, as needed, elsewhere in Asia.



Beijing Purple Star Appraisal Co. (BPS) is a licensed appraisal company by the central government
and has been years in providing appraisal as well as credit reference services to both the
government and the public.



It is strategically important and in the advantage of both APYM and BPS if they could form a
partnership to capture this window of opportunity and to take the lead in the credit rating
business in China, by launching a project co-operation in the establishment of an international
standard credit bureau system in Beijing.



MISSION



It is the mission of the project co-operation to develop an international standard credit file
system and core information database to provide, on a per file basis, individual and consumer
credit history and rating to qualified clients, and with the same platform to provide world class
third party payment processing services to the financial institution and merchants in China and
abroad.



PROJECT OVERVIEW



Creation of a core centralized system for storing Chinese consumer credit files will allow for a
network to be deployed whereby, on a per file basis, the Chinese consumer database information can
be sold to prospective clients. By providing the output in an internationally recognized format,
the database information can be sold to International Financial Institutions, Foreign large store
merchants (i.e. WalMart, Carrefour), Auto Loan agencies (i.e. Ford, GM, VW, Audi, Mercedes), Luxury
goods retailers (DFS, CARTIER, LVMH, Gucci, Prada, etc.) and many other marketing and merchandise
firms.



(A) APYM Focus:



In terms of the Chinese Credit Bureau agency platform development, APYM will provide technical
services and consulting on an as needed basis to the project as well as direct investment in a
partnership designed to generate profits as a result of providing Chinese consumer credit file
information to international clients in an internationally accepted data format. APYM will also
provide full database and network services to the venture once all parties agree to the form of
cooperation and services to be offered.






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It is the intention of APYM to provide support, management, advice, technical and other resources
towards both an International Commercial Standard File Bureau as well as an international style
Consumer Credit File which will be built upon international standards with international partners
such as D&B, Experian, Equifax, or Trans Union, etc. Such an international focus will work well as
a joint cooperation effort with our local Chinese Credit Bureau partner as both sides are able to
bring their specific expertise to the success of the joint effort. In due time when the bureau is
ready to be a qualified international player, APYM will work to bring the investment from these
major player and/or to turn the co-operation into a subsidiary of these world class agencies as
co-operation exit strategy.





	(B)	 	Feature services:







	 
	 	(1)	 	To obtain and to store up to 1.2 million business and individual credit files;
	 
	 	(2)	 	To package and to rate the data file with international standard;
	 
	 	(3)	 	To offer credit files at a competitive charge to the services, first to the
foreign agencies and financial institutions then to the domestic banking and lending
companies;
	 
	 	(4)	 	To provide education and assistance to the domestic business and individuals
to build up and/or to repair their credit histories;
	 
	 	(5)	 	To form alliances with major international agencies in moving towards the
future joint venture business in China.






	(C)	 	Set Up Requirements:






	 	(6)	 	License and/or permits (under BPS) to conduct the project and services;
	 
	 	(7)	 	Initial supply of 300,000 business/or individual credit files;
	 
	 	(8)	 	A secured data center with servers, secured ISP and high standard
telecommunication capability both for voice and data transmissions;
	 
	 	(9)	 	A call center initially with enough full time staff;
	 
	 	(10)	 	Facilities for marketing, managerial, administrative operations;






	(E)	 	Hardware and Software Requirements;




The ultimate sizing of the systems will always be an unknown since it will grow in terms of
commercial users and the customer data. Thus the system should be scalable enough to accommodate
large potential growth. The products and hardware sizing here reflect such scalability (as
additional processing power and disk is needed they can simply be added and integrated into the
existing solution) and is provided as an initial estimate. However, the cost of a localized
3rd party credit bureau package itself has not been Included here. This can either be
developed or a purchased “off-the-shelf” with the recommendation being an already existing
commercial package to be customized. Should a partner be selected then the cost of the product
will be offset.





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With Microsoft coming on as a future partner/investor we will continue our strategy of deploying
our systems on Microsoft products and technologies.



The database systems need to be separated in OLAP (On-Line Analytical Processing) and Data
Warehouse systems. The Web Servers are separated for internal and external access. The selected
Netscreen firewall will be able to handle a private network and DMZ network zone. An additional
router should be used as an additional “firebreak” for the private network.



The hardware selected should be from a name brand supplier, such as HP or IBM. Dual Xeon Processor
model should be selected with SCSI interfaces (with dual external channels) to support the external
disk array.



It is assumed that an Internet connection and all the necessary equipment for it are already in
place.



As per the diagram, the following systems will be deployed for the Credit Bureau:



Software:





	•	 	               OLAP Database
	 
	 	 	This is the online system used for real-time updates.
	 
	 	 	Server Cluster-2 Servers- SQL Server load balanced with disk writes to external SCSI
Disk Array
	 
	 	 	Data Warehouse
	 
	 	 	This is the query and analysis system used for data analysis.
Server Cluster-2 Servers- SQL Server load balanced with disk writes to external SCSI
Disk Array
	 
	•	 	               Web Servers
	 
	 	 	Internal 1 Server. The Application Server is also housed here, used for handling Incoming
data.
	 
	 	 	External 1 Server, RADIUS Security database for external user authentication
(tied into Netscreen).
	 
	•	 	               Firewall
	 
	 	 	Juniper Netscreen, high end model. Same brand as deployed in our China office
And on the DFS network.. A single router to be deployed as an additional private Network
“firebreak”.
	 
	•	 	               ISCRS




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APYM International Standard Credit Rating System




     Hardware and estimated cost



	 	 	 	 	 	 	 	 	 	 	 	 	 
	Software	 	 	 	Cost (US$)	 	Units	 	Total
	OS
	 	Windows 2003 Enterprise	 	$	1,000	 	 	6	 	$	6,000	 
	Database
	 	MS SQL Server 2000 Enterprise	 	$	1,800	 	 	4	 	$	7,200	 
	Security
	 	RADIUS Database	 	$	4,500	 	 	1	 	$	4,500	 
	The Portal
Management Platform
	 	BGSRD-100	 	$	20,000	 	 	1	 	$	20,000	 
	ISCRS
	 	APYM Credit Rating System	 	$	115,000	 	 	1	 	$	115,000	 
	Customization
	 	Software localization	 	$	11,115	 	 	 	 	$	11,115	 
	Hardware
	 	 	 	 	 	 	 	 	 	 	 	 
	Servers
	 	Dual Intel Xeon HA Server 1GB RAM, 40GB Drive, SCSI	 	$	3,000	 	 	6	 	$	18,000	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	Disk Array
	 	SCSI RAID 5 Disk Array	 	$	5,000	 	 	2	 	 	10,000	 
	Firewall
	 	Netscreen	 	$	4,000	 	 	1	 	$	4,000	 
	Router
	 	CISCO	 	$	2,000	 	 	1	 	$	2,000	 
	Switch
	 	24-port Managed Switch	 	$	400	 	 	1	 	$	400	 
	Misc.
	 	Cables & other equipment.	 	$	2,000	 	 	1	 	$	2,000	 
	 
	 	 	 	 	 	 	 	Grand Total	 	$	200,215	 





These costs are exclusive of design, implementation and test services



PROJECTED TIME TABLE



Assuming the above captured requirements are, will be met, the projected time frame for the
business roll out is 180 days, which will include;





	 	(1)	 	Facility set up, hardware testing, feasibility study, staff training and
operation platform set up;
	 
	 	(2)	 	Project promotion, service establishment for credit standard, rating system,
data base, credit build-up and repair system;
	 
	 	(3)	 	Interface with major international agencies including initial alliances
agreements;
	 
	 	(4)	 	Start offering entry rights and/or credit files to foreign agencies.
	 
	 	(5)	 	Start offering “credit build-up” “credit repairing” program and/or membership
to BPS employees and affiliates as well as other selective market sectors;
	 
	 	(6)	 	Running full functional operation moving towards the larger scale operation.





-END-





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